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HomeMy WebLinkAboutContracts & Agreements_10-2008_CCv0001.pdf RECORDING REQUESTED BY: PUBLIC WORKS DEPARTMENT CITY OF REDLANDS Recorded in Official Records, County of San Bernardino 4/23/2008 10:24 LARRY WALKER DTH AM ,frf-d Auditor/Controller — Recorder WHEN RECORDED RETURN TO: 870 Land America Commonwealth CITY CLERK'S OFFICE CITY OF REDLANDS Doc#: 2008-0182021 Titles: 1 Pages: 16 P.O. BOX 3005 Fees 56.00 REDLANDS, CA 92373 I I I II I 11 I I I I 11 Taxes 0.00 Other 0.00 PAID $56.00 CITY OF REDLANDS SUBDIVISION IMPROVEMENT AGREEMENT THIS AGREEMENT is made thisl5ttlav of January , 2008 by and between the City of Redlands, a municipal corporation, hereinafter referred to as "City," and Redlands Villas, LLC, hereinafter referred to as "Subdivider." RECITALS WHEREAS, Subdivider is the owner or authorized developer of property located in the City of Redlands known as Tract No. 17533 (the "Subdivision"). for which Subdivider is obligated to construct certain improvements(the"Improvements")as a condition of approval of the Subdivision; and WI IEREAS. City desires to ensure that the Improvements will be constructed in a good and Workmanlike manner and in accordance with the laws of the City; and WHEREAS, Subdivider acknowledges that it is familiar with the provisions of the Redlands Municipal Code and the State Subdivision Map Act(Government Code sections 66410 et seq.)and agrees to comply therewith; and WHEREAS, a final map for the Subdivision has been prepared pursuant to the Redlands Municipal Code and the State Subdivisidn Map Act, and has been filed by Subdivider for consideration by the City Council of City; NOW, THEREFORE, in consideration of the approval and acceptance by the City Council of the City of the final map fir the Subdivision. and the mutual promises contained herein, the Parties hereto agree as follows: Sub linprove.AgrulLAh) 16, 2006 A I. Definition and Ownership of Improvements. The Improvements include but are not limited to the uading, paving, construction of curbs and gutters, storm drains and sanitary sewers, water lines, utilities, street lights and all appurtenant facilities associated with the Subdivision that are shown in the plans,profiles and specifications that have been prepared by Subdivider's engineer and approved by City,and which are attached hereto as Exhibit "A."No work on the Improvements shall be commenced by Subdivider until such plans,profiles and specifications have been approved by City and permits issued. The cost of plan checking and inspection incurred by City shall be paid by Subdivider. All Improvements constructed or installed pursuant to this Agreement shall become the property of City, without payment therefor, upon acceptance of those Improvements by City. 2. Time for Completion. Construction of the Improvements shall be completed within twelve (12) months from the date of Subdivider's execution of this Agreement. In the event Subdivider fails to complete construction of the Improvements within that time period, City may require Subdivider's surety to complete the Improvements,or City may complete construction of the Improvements and recoup its expenses for such work from Subdivider, or Subdivider's surety, as hereafter provided. 3. Subdivider's Obligations to Construct Improvements. Subdivider shall: a. Complete, at Subdivider's own expense, all the public Improvement work required by City in conformance with approved Improvement Plans within one (1) year following the date of this Agreement; provided, however, that the Improvements shall not be deemed to be completed until accepted by the City Council as provided in Section 18 hereof. b. Furnish at Subdivider's expense the necessary materials,provisions and other supplies or equipment used for Improvements and for a payment bond with respect to such work or labor. as required by Civil Code Section 3247. for the completion of the Improvements in conformity with the Improvement Plans. c. Acquire and dedicate all rights-of-way,easements,and other interests in real property for construction and installation of the Improvements,or pay the cost of acquisition incurred by City. All rights-of-way,easements and other interests in real property shall be free and clear of liens and encumbrances. The Subdivider's obligations with regard to acquisition by City of off-site rights-of- way, easements and other interests in real property shall be the subject to a separate agreement between Subdivider and City. Subdivider shall also be responsible for obtaining any public or private sanitary sewer, drainage, and/or utility easements or authorization to accommodate the Subdivision. d. Commence construction of the Improvements by the time established in Section 25 of the agreement and complete the Improvements by the deadline stated in Paragraph 3.a, above, unless a time extension is granted by the City as authorized in Section 25. e. Install all subdivision public Improvement monuments required by law prior to formal final acceptance of the public Improvements b the City. Individual property monuments shall be installed within one year of said acceptance. Suh.Impro ,:.Agrrnt,'Ma I 6, 2006 f. Install street name signs conforming to City standards. Permanent street name signs shall be installed before acceptance of the Improvements by the City. 4. Acquisition and Dedication of Property. If any of the public Improvement and land use development work contemplated by this Agreement is to be constructed or installed on land not owned by City or Subdivider, no construction or installation shall be commenced before: a. The offer of dedication to City of appropriate rights-of-way, easements or other interests in real property, and appropriate authorization from property owner to allow construction or installation of the Improvements or work, or b. The dedication to,and acceptance by,the City of appropriate rights-of-way easements or other interests in real property, as determined by the City Engineer, or c. The issuance by a court of competent jurisdiction pursuant to the State Eminent Domain Law of an order of possession. Subdivider shall comply in all respects with the order of possession. Nothing in this Section shall be construed as authorizing or granting an extension of time to the Subdivider. 5. Security. Subdivider shall at all times guarantee Subdivider's performance by furnishing to City and maintaining good and sufficient security as required by the Subdivision laws in accordance with Sections 66499 through 66499.10 of the Government Code, on forms approved by City for the purposes and in the amounts as follows: a. To assure faithful performance of the Agreement in regard to said Improvements in an amount of 100% of the estimated cost of the improvements; and b. To secure payment to any contractor, subcontractor, person renting equipment, or furnishing labor and materials for the Improvements required to be constructed and installed pursuant to this Agreement, Subdivider shall provide City with a bond in the amount of 100%of the estimated cost of the Improvements; and c. To guarantee or warranty the work done pursuant to this Agreement for a period of one (1) year following acceptance thereof by City against any defective work or labor done or defective materials furnished in the additional amount of 10% of the estimate cost of said Improvements; and d. Subdivider shall also furnish to City' good and sufficient security in the amount of 100%of the estimated cost of setting subdivision monuments as stated previously in this Agreement in Section 3(e) for a period of one :year plus thirty (30) days from formal acceptance by the City Council. sub impro ,..Agrnit./May 16,2t)(10 3 tt gi The securities required by this Agreement shall be kept on file with the City Clerk. The ,-4 terms of the security documents reference in the Agreement are incorporated into this Agreement by this reference. If any security is replaced by another approved security,the replacement shall: (1) comply with all the requirements for security in this Agreement,(2)be provided to the City Engineer to be tiled with the City Clerk, and upon filing (3) be deemed to have been made a part of and incorporated into this Agreement. Upon provision of a replacement security with the City Engineer and filing of a replacement security with the City Clerk, the former security may be released. 6. Alterations to Improvement Plans. a. Any changes,alterations or additions to the Improvement Plans,not exceeding 10% of the original estimated cost of the Improvements,which are mutually agreed upon by the City and Subdivider shall not relieve the Improvement security given for faithful performance of this Agreement. In the event such changes,alterations or additions exceed 10%of the original estimated cost of the Improvements, Subdivider shall provide Improvement security for faithful performance as required by Section 5 of the Agreement for 100% of the total estimated cost of the Improvement as changed, altered or amended, minus any completed partial releases allowed by Section 8 of this Agreement. b. Subdivider shall construct the Improvements in accordance with City standards in effect at the time of execution of this Agreement. City reserves the right to modify the standards applicable to the Subdivision and this Agreement when necessary to protect the public safety or welfare or comply with applicable Federal or State law or City zoning ordinances. If Subdivider requests and is granted an extension of time for completion of the Improvements, City may apply the standards in effect at the time of the extension. 7. Inspection. Subdivider shall at all times maintain proper facilities and safe access for inspection of the public Improvements by City inspectors and to the shops wherein any work is in preparation. Upon completion of the work the Subdivider may request a final inspection by the City Engineer of the City Engineer's authorized representative. If the City Engineer, or the designated representative,determines that the work has been completed in accordance with this Agreement,then the City Engineer shall certify the completion of the public Improvements to the City Council. No Improvements shall be finally accepted by the City' Council unless all aspects of work have been inspected and completed in accordance with the Improvement plans. When applicable law requires an inspection to be made by the City at a particular stage of the work of constructing and installing such Improvements, City shall be given timely notice of Subdivider's readiness for such inspection and Subdivider shall not proceed with additional work until the inspection has been made and the work approved. Subdivider shall bear all costs of inspection and certification. No improvements shall be deemed completed until acceptance by the City Council pursuant to Section 18 herein. 8. Release of Securities. The securities required by this Agreement shall be released as follows: Sub,Impro\e,.\grmt:NlaN 16.2(10() 4 1 1 i a. Security given for faithful performance of any act,obligation.work or agreement shall be released upon the final completion and acceptance of the act or work, subject to the provisions of subsection (b) hereof. b. The City Engineer may release a portion of the security given for faithful performance of Improvement work as the Improvement progresses upon application thereof by the Subdivider; provided, however, that no such release shall be for an amount less than 25% of the total Improvement security given for faithful performance of the Improvement work and that the security shall not be reduced to an amount less than 50% of the total Improvement given for faithful performance until final completion and acceptance of the public Improvements. In no event shall the City Engineer authorize a release of the Improvement security which would reduce the security to an amount below 125% of that required to guarantee completion for the Improvement work and any other obligation imposed by this Agreement. c. Security given to secure payment to the contractor, subcontractors and to persons furnishing labor, materials or equipment shall,at six(6)months after the completion and acceptance of the work,be reduced to an amount equal to no less than 125%of the total claimed by all claimants for whom liens have been filed and of which notice has been given to the City, plus an amount reasonably determined by the City Engineer to be required to assure the performance of any other obligations secured by the security. The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given. d. No security given for the guarantee or warranty for work shall be released until the expiration of the warranty period and until any claims filed during the warranty period have been settled. As provided in Paragraph 12,the warranty period shall not commence until final acceptance of all the work and Improvements by the City Council. e. The City may retain from any security released, an amount to sufficiently cover costs and reasonable expenses and fees. including reasonable attorneys' fees. 9. Injury to Improvements, Public Property or Public Utilities Facilities. Subdivider shall replace or repair,or have replaced or repaired,as the case may be,all public Improvements,public utility facilities and surveying or subdivision monuments which are destroyed or damaged as a result of any work under this Agreement. Subdivider shall bear the entire cost of replacement or repairs of any and all public or public utility property damaged or destroyed by reason of any work done under this Agreement,whether such property is owned by the United States or any agency thereof, or the State of California, or any agency or political subdivision thereof, or by the City or any public or private utility corporation or by any combination of such owners. Any repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer. sub ImproNe Agrnit Nla) 16, 2006 5 Furthermore, until such time as the Improvements are accepted by City. Subdivider shall be responsible for, and bear the risk of loss to, any of the improvements constructed or installed. Until such items as all improvements required by this Agreement are fully completed and accepted by City. Subdivider shall be responsible for the care, maintenance of, and any damage to such Improvements. City shall not, nor shall any officer or employee thereof, be liable to or responsible for any accident, loss or damage, regardless of cause, happening or occurring to the work or Improvements specified in this Agreement prior to the completion and acceptance of the work or Improvements. All such risks shall be the responsibility of and are hereby assumed by Subdivider. 10. Permits. Subdivider shall at Subdivider's expense, obtain all necessary permits and licenses for the construction and installation of the Improvements,and give all necessary notices and pay all fees and taxes required by law. 11. Default of Subdivider. a. Default of Subdivider shall include, but not be limited to: (1) Subdivider's failure to timely commence construction of Improvements under this agreement; (2) Subdivider's failure to timely complete construction of the Improvements; (3) Subdivider's failure to timely cure any defect in the Improvements; (4) Subdivider's failure to perform substantial construction work for a period of twenty (20) calendar days after commencement of the work; (5) Subdivider's insolvency, appointment of a receiver, or the tiling of any petition in bankruptcy, either voluntary or involuntary, which Subdivider fails to discharge within thirty (30) days; (6) The commencement of a foreclosure action against the subdivision or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or (7) Subdivider's failure to perform any other obligation under this Agreement. b. The City reserves to itself all remedies available to it at law or in equity for breach of Subdivider's obligations under this Agreement. The City shall have the right, subject to this Section,to draw upon or utilize the appropriate security to mitigate the City's damages in the event of default by Subdivider. The right of the City to draw upon or utilize the security is additional to and not in lieu of any other remedy available to City. It is specifically recognized that the estimated costs and security amounts may not reflect the actual cost of construction or installation of the Improvements and,therefore,City's damages for Subdivider's default shall be measured by the cost of completing the required Improvements. The sums provided by the Improvements security may be used by City for the completion of the public Improvements in accordance with the Improvement plans and specifications contained herein. In the event of Subdivider's default under this Agreement, Subdivider authorizes City to perform such obligation twenty (20) days after mailing, written notice of default to Subdivider and Subdivider's surety, and agrees to pay the entire cost of such performance by City. suh.impr-mc.Agrint,, 16, 2(106 City may take over the work and prosecute the same to completion, by contract or by any other method City may deem advisable, for the account and at the expense of Subdivider, and Subdivider's surety shall be liable to City for any excess cost of damages occasioned City thereby. In such event, City.without liability for so doing, may take possession of, and utilize in completing the work, such materials, appliances, plants and other property belonging to Subdivider as may be on the site of the work and necessary for performance of the work. c. Failure of Subdivider to comply with the terms of this Agreement shall constitute consent to the filing by the City of a notice of violation against all the lots in the Subdivision, or to rescind the approval or otherwise revert the Subdivision to acreage. The remedy provided by this subsection is in addition to, and not in lieu of, other remedies available to City. Subdivider agrees that the choice of remedy or remedies for Subdivider's breach shall be in the discretion of City. d. In the event that Subdivider fails to perform any obligation hereunder. Subdivider agrees to pay all costs and expenses incurred by City in securing performance of such obligations, including but not limited to fees and charges of architects, engineers, attorneys other professionals and court costs. e. The failure of City to take enforcement action with respect to a default, or to declare a breach, shall not be construed as a waiver of that default or breach or any subsequent default or breach of Subdivider. 12. Warranty. Subdivider shall guarantee or warranty the work done pursuant to this Agreement for a period of one (1) year after final formal acceptance of this subdivision by the City Council against any defective work or labor done or defective materials furnished. If within the warranty period any work or Improvement or part of any work or Improvement done, furnished, installed or constructed by Subdivider fails to fulfill any of the requirements of this Agreement or the Improvement plans or specifications referred to herein, Subdivider shall without delay and Without cost to the City repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure. Should Subdivider fail to act promptly in accordance with this requirement. Subdivider hereby authorizes City, at City's option to perform the work twenty (20) days after mailing written notice of default to Subdivider and to Subdivider's surety, and agrees to pay the cost of such work by City. Should the City determine that an urgency requires repairs or replacements to be made before Subdivider can be notified, City may, in its sole discretion, make the necessary repair or replacement or perform the necessary work and Subdivider shall pay to City the cost of such repairs. 13. Subdivider Not Agent or Employee of City. Neither Subdivider nor Subdivider's agents,contractors or subcontractors are or shall be considered to be agents or employees of the City in connection with the performance of Subdivider's obligations under this Agreement. 14. Environmental Warranty. Prior to the acceptance of any property dedications or Improvements by City,Subdivider shall certify and warrant that neither the property to be dedicated nor Subdivider are in violation of any environmental law and neither the property to be dedicated nor the Subdivider are subject to any, existing, pending. or threatened investigation by any federal, state or local governmental authority under or in connection with environmental law. Neither Sub.Improvc,Agrnit.INlay 16, 2006 7 Subdivider nor any third party will use, generate, manufacture, produce, or release, on, under, or about the property to be dedicated,any hazardous substance except in compliance with all applicable environmental laws. Subdivider has not caused or permitted the release of, and has no knowledge of the release or presence of, any hazardous substance on the property to be dedicated or the migration of any hazardous substance from or to any other property adjacent to,or in the vicinity of, the property to be dedicated. Subdivider's prior and present use of the property to be dedicated has not resulted in the release of any hazardous substance on the property to be dedicated. Subdivider shall give prompt written notice to City at the address set forth herein of: a. Any proceeding or investigation by any federal,state or local governmental authority with respect to the presence of any hazardous substance on the property to be dedicated or the migration thereof from or to any other property adjacent to, or in the vicinity of, the property to be dedicated; b. Any claims made or threatened by any third party against City or the property to be dedicated relating to any loss or injury resulting from any hazardous substance; and c. Subdivider's discovery of any occurrence or condition on any property adjoining in the vicinity of the property to be dedicated that could cause the property to be dedicated or any part thereof to be subject to any restrictions on its ownership, occupancy, use for the purpose for which it is intended, transferability or suit under any environmental law. 15. Other Agreements. Nothing contained in this Agreement shall preclude City from expending monies pursuant to agreements concurrently or previously executed between the Parties, or from entering into agreements with other Subdividers for the apportionment of costs of water and sewer mains, or other improvements pursuant to the provisions of the City ordinances providing therefor, nor shall anything in this Agreement commit City to any such apportionment. 16. Subdivider's Obligation to Warn Public During Construction. Until final acceptance of the improvements, Subdivider shall give good and adequate warning to the public of each and every dangerous condition existent in said improvements,and will take reasonable actions to protect the public from such dangerous condition. 17. Vesting of Ownership. Upon formal final acceptance of the work by City and recordation of the Final Map,ownership of the improvements constructed pursuant to this agreement shall vest in City. 18. Final Acceptance of Work. Acceptance of work on behalf of City shall be made by the Public Works Director upon recommendation of the City Engineer after final completion and inspection of all improvements. The Public Works Director shall act upon the Engineer's recommendation within sixty (60) days from the date the City Engineer certifies that the work has been finally completed, as provided in Section 7. Such acceptance shall not constitute a waiver of defects by City. Sub.linpro c.AgrnitiMay 16,2006 8 19. Compliance with Laws. Subdivider and its agents, employees, contractors and subcontractors shall comply with all applicable Federal, State and local rules, laws and regulations in the performance of the improvements and land development pursuant to this agreement including but not limited to all applicable Labor Code and prevailing wage laws. 20. Insurance. a. Subdivider's Insurance to be Primary All insurance required by this Agreement is to be maintained by Subdivider for the duration of this Agreement and shall be primary with respect to City and non-contributing to any insurance or self-insurance maintained by City. Subdivider shall provide City with Certificates of Insurance evidencing such insurance within fifteen (1 5) days of execution of this Agreement. b. Worker's Compensation and Employer's Liability. I. Subdivider shall have Worker's Compensation and Employer's Liability insurance in force throughout the duration of the Agreement in an amount which meets the statutory requirement with an insurance carrier acceptable to City. Such insurance shall be primary and non- contributing to any insurance or self-insurance maintained by City. City shall be named as an additional insured and the insurance policy shall include a provision prohibiting cancellation of said policy except upon thirty (30) days prior written notice to City. Certificates of Insurance shall be delivered to City within fifteen (15) days of execution of Agreement. 2. Subdivider expressly waives all rights to subrogation against the City, its officers, employees and volunteers for losses arising from work performed by Subdivider for City by expressly waiving Subdivider's immunity for injuries to Subdivider's employees and agrees that the obligation to indemnify,defend and hold harmless provided for in this Agreement extends to any claim brought by or on behalf of any employee of Subdivider. This waiver is mutually negotiated by the parties. This shall not apply to any damage resulting from the sole negligence of City, its agents and employees. To the extent any of the damages referenced herein were caused by or resulted from the concurrent negligence of City, its agents or employees, the obligations provided herein to indemnify, defend and hold harmless is valid and enforceable only to the extent of the negligence of Subdivider, its officer, agents and employees. c. Comprehensive General Liability Insurance. Subdivider shall secure and maintain in force throughout the duration of the Agreement comprehensive general liability insurance covering all work under this Agreement, including work done by subcontractors, with carriers acceptable to City. Minimum coverage of one million dollars($1,000,000)per occurrence and two million dollars ($2,000,000) aggregate for public liability, property damage and personal injury is required. City shall be named as an additional insured and the insurance policy shall include a provision prohibiting cancellation of said policy except upon thirty(30)days prior written notice to the City. Such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City. Certificates of insurance shall be delivered to City within fifteen (15) days of execution of this Agreement. Sub.1mprok c.Agrtnt./1\th 16, 2006 9 d. Business Auto Liability Insurance. Subdivider shall have business auto liability coverage, with minimum limits of one million ($1,000,000) per occurrence, combined single limit for bodily injury liability and property damage liability. This coverage shall include all Subdivider owned vehicles used on the project, hired and non-owned vehicles, and employee non-ownership vehicles. 21. Indemnity/Hold Harmless. City or any officer or employee thereof shall not be liable for any injury to persons or property occasioned by reasons of the acts or omissions of Subdivider, its agents, employees, contractors and subcontractors in the performance of this Agreement. Subdivider further agrees to protect, defend, indemnify and hold harmless from any and all claims, demands,causes of action,liability or loss of any sort,because of,or arising out of,acts or omissions of Subdivider, its agents, employees, contractors and subcontractors in the performance of this Agreement,except for such claims,demands,causes of action,liability or loss arising out of the sole active negligence of the City, its officials, boards, commissions, the members thereof, agents, and employees, including all claims, demands, causes of action, liability, or loss because of or arising out of,in whole or in part,the design or construction of the Improvements. This indemnification and Agreement to hold harmless shall extend to injuries to persons and damages or taking of property resulting from the design or construction of said Subdivision, and the public Improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design and construction of public drainage systems, streets and other public Improvements. Acceptance by the City of the Improvements shall not constitute an assumption by the City of any responsibility for any damage or taking covered by this Section. City shall not be responsible for the design or construction of the property to be dedicated or the Improvements pursuant to the approved improvement plans or map, regardless of any negligent action or inaction taken by the City in approving the plans or map,regardless of any negligent action or inaction taken by the City in approving the plans or map,unless the particular improvement design was specifically required by City over written objection by Subdivider submitted to the City Engineer before approval of the particular improvement design, which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design. After acceptance of the Improvements,the Subdivider shall remain obligated to eliminate any defect in design or dangerous condition caused by the design or construction defect; however, Subdivider shall not be responsible for routine maintenance. The provisions of this paragraph shall remain in full force and effect for ten (10) years following the acceptance by the City of the Improvements. It is the intent of this section that Subdivider shall be responsible for all liability for design and construction of the Improvements installed or work done pursuant to this Agreement and that City shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving,reviewing,checking,or inspecting any work or construction. The Improvement security shall not be required to cover the provisions of this paragraph. Subdivider shall reimburse the City for all costs and expenses (including but not limited to fees and charges of architects,engineers,attorneys and other professionals,and court costs)incurred by City in enforcing the provisions of this section. Sul),Improve.Agrint./NI:iy I 6, 20116 1 0 22, Personal Nature of Subdivider's Obligations. All of Subdivider's obligations under this Agreement are and shall remain the personal obligations of Subdivider notwithstanding a transfer of all or any part of the property within the Subdivision subject to this Agreement, and Subdivider shall not be entitled to assign its obligations under this Agreement to any transferee of all or any part of the property within the Subdivision or any other third party without the express written consent of the City. 23. Sale or Disposition of Subdivision. Seller or other Subdivider may request a novation of this Agreement and a substitution of security. Upon approval of the novation and substitution of securities, the Subdivider may request a release or reduction of the securities required by this Agreement. Nothing in the novation shall relieve the Subdivider of the obligations under Section 22 for the work or Improvement done by Subdivider. 24. Time is of the Essence. Time is of the essence in the performance of this Agreement. 25. Time for Commencement of Work; Time Extensions. Subdivider shall commence substantial construction of the Improvements required by this Agreement not later than three (3) months after the date of this Agreement. In the event good cause exists as determined by the City Engineer,the time for commencement of construction or completion o f the Improvements hereunder may be extended for a period or periods not exceeding a total of two additional years. The extension shall be executed in writing by the City Engineer. Any such extension may be granted without notice to Subdivider's surety and shall not affect the validity of this Agreement or release the surety or sureties on any security given for this Agreement. The City Engineer shall be the sole and final judge as to whether or not good cause has been shown to entitle Subdivider to an extension. Delay, other than delay in the commencement of work, resulting from an act of City, act of God, by storm or inclement weather, strikes, boycotts or similar political actions which prevent the conducting of work, which Subdivider could not have reasonably foreseen, and furthermore were not caused by or contributed to by Subdivider, shall constitute good cause for and extension of the time for completion. As a condition of such extension, the City Engineer may require Subdivider to furnish new security guaranteeing performance of this Agreement, as extended, in an increased amount to compensate for any increase in construction costs as determined by the City Engineer. 26. Certificate of Satisfaction. The City Manager may, upon the determination of the Public Works Director that Subdivider has fully satisfied the obligations secured by this Agreement, at the request of Subdivider, execute and record a Certificate of Satisfaction in the official records of the County of San Bernardino evidencing that Subdivider has complied with, and satisfied, all obligations under this Agreement. Subdivider shall be responsible for the payment of all City costs associated with the preparation and recordation of such a certificate. 27. No Vesting of Rights. Performance by Subdivider of this agreement shall not be construed to vest Subdivider's rights with respect to any change in any zoning or building law or ordinance. Sub.linprov‘,,Agrint.:Nla) 16, 2006 11 28. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by mail, postage prepaid and addressed as provided in this section. Notice shall be effective on the date it is delivered in person, or, if mailed, on the date of deposit in the United States Mail. Notices shall be addressed as follows unless a written change is filed with the City: Notice to City: Public Works Director/City Engineer City of Redlands PO Box 3005 Redlands, CA 92373 Notice to Subdivider: Redlands Villas, LLC 6336 Taylor Canyon Drive Rancho Cucamonga, CA 91739 Notice to Surety: 29. Severability. The provisions of this Agreement are severable. In any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties. 30. Captions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, limit, exemplify, or aid in the interpretation, construction or meaning of any provisions of this Agreement. 31. Litigation. In the event that suit is brought to enforce the terms of this Agreement, the prevailing party shall be entitled to litigation costs and reasonable attorney's fees. 32. Incorporation of Recitals. The recitals to this agreement are hereby incorporated into the terms of this Agreement. 33. Entire Agreement. This agreement constitutes the entire Agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the parties. Sub Improe Agrint/Ma) 16, 2006 12 34. Interpretation. This Agreement shall be interpreted in accordance with the laws of the State of California. 35. Jurisdiction. Jurisdiction of all disputes over the terms of this Agreement shall be in the County of San Bernardino, State of California. IN WITNESS WHEREOF this agreement is executed by the Parties as of the date herein above first written. SUBDIVIDER CITY OF REDLANDS REDLANDS VILLAS, LLC By: z -- By /r7 - = ' ` ,' Title City R' nager, N. Enrique Martinez All /A ii 6e-. By: � v Attest: ," ,/ Title i ~t `r # „ k. 4,z, ;f , Cita'Clerk, r�e Poyzer (Notary attachment and proof of authorization for Subdivider's signatures required and must be attached) Suib.Improve.Vilna..'1%1av 16,2006 13 ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BI RN ) SS (TFY OF REDLANDS By the authority granted under Chapter 4, Article 3, Section 1181, of the California Civil Code, and Chapter 2, Division 3, Section 40814, of the California Government Code, on January 16, 2008, before me, Teresa Ballinger, Assistant City Clerk, on behalf of Lorrie Poyzer, City Clerk of the City of Redlands, California, personally appeared N. Enrique Martinez, City Manager and Lorrie Poyzer, City Clerk who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. f , \‘' 0 r !7/// WITNESS my hand and official seal. (.1) LORRIE POYZER, CITY CLERK m * ° 1888 * By: c- . /PO?, Teresa Ballinger, Assistant City-Clerk 78// \hmi! i0‘0' (909)798-7531 CAPACITY CLAIMED BY SIGNER(S) } Individual(s) signing for oneself/themselves 1 Corporate Officer(s) Title(s) Company I Partner(s) Partnership 1 Attorney-In-Fact Principal(s) Trustee(s) Trust { x } Other Title(s): City Manager and City Clerk Entity Represented: City of Redlands, a municipal corporation THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW: Title or Type of Document: Subdivision Improvement Agreement (Tract Map No. 17533). Date of Document: January 15, 2008 Signer(s) Other Than Named Above: Redlands Villas., by: Hector Ruiz and Socorro Ruiz, Owners NISSIMIM State of Calif rniaCALIFORNIA ALL-PURPOSE . of bi"\--/X. i ss. CERTIFICATE OE ACKNOWLEDGMENT 'County � w On Aglii."- �, 1 !!before me, tl �` A -4c''/ r Late t - Printedh.,.oie of Notary,`uhiir;. • personally appeared �L',,lCr,.t.- 40 PIJ4 /76191, £cis" �, ��,,. Printed Nam.c>(<,)of signer(s) j p onally known to me -or- 4 proved to me on the basis of satisfactory evidence: T D form(s)of identification R J credible witness(es) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me g 1 that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their 2 il signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. 'h*. '. i 4 P` alri0 '- x � r le �/. �. S,1,more or'1c,ta r PUbil1 (Seal) OPTIONAL INFORMATION Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document. Description of Attached Document t The preceding Certificate of Acknowledgment is attached to a document .r� Additional rienai 5nr-r,» � 5ve._r(s�Thumbprint(s)o„r.nnsi titled/for the purpose of / d!'11f#r- l �!'j ` ,//"art /16 . i _Ji. Other containing /If pages,and dated 4f i 1 The signer(s) capacity or authority is/are as: i$' _] Individual(s) r S ._.,) Attorney-in-Fact I °' t a corporate Officer(s) ! s z il L Guardian/Conservator f Li Partner Limited/General _ 4. IruStee( ) Other: 3 representing. i t]t_op5 ah:2C4)4 Notary Rotary Inc725 29th ti[,LU4, d ii<es,IA tt0312-361 2 Form ATTO2 02l64 To e-orde t-411 to!I re 1- 77- r ,, or vn t us ;n the Iftteinet 4 h'tJ.ilwww the c:1 4sI ern CITY OF REDLANDS SUBDIVISION IMPROVEMENT AGREEMENT EXHIBIT "A" TRACT MAP NO. 17533 Description Drawing No. Approval Date No. of Sheets The following plans are on file in the office of the Public Works Director(PWD): Street Improvement Plans (PWD) 1875-ST 01/08/2007 05 Street Light Plans (PWD) 1875-SL 01/08/2007 01 Traffic Signal/Striping Plans (PWD) 1875-TS 01/08/2007 01 Street Tree Plans (PWD) 1875-TP 01/08/2007 01 Precise Grading Plans (PWD) 1875-PG 01/08/2007 04 Sound Wall and Fencing Sub Improve Agrmt/May 16,2006 14 77:7.7.„33 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE REDLANDS VILLAS Declaration of Covenants, Conditions and Restrictions for The REDLANDS VILLAS is made this 20th day of December 2007, by the undersigned Owners. WHEREAS, the undersigned currently possess at least 70% of the votes entitled to be cast; And, NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: I PURPOSE OF THESE RESTRICTIONS, COVENANTS AND CONDITIONS The purpose of these restrictions, covenants and conditions is to assure the use of the property for attractive residential purposes (as set forth herein) only, and securing to each lot owner the full benefit and enjoyment of his or her lot and home. II DEFINITIONS A. The Architectural Control Committee means the committee provided for in Part 5 of this declaration. B. The Association means the REDLANDS VILLAS Property Owners Association as referred to in Part 3 of this Declaration. C. Bona Fide First Mortgage means any Realty Mortgage or Deed of Trust made in good faith and for value and property executed and recorded so as to create a lien on any lot or lots that is prior to the lien of any other Realty Mortgage or Deed of Trust. D. Declaration means this Declaration of Covenants, Conditions and Restrictions for the REDLANDS VILLAS E. The Lot or Lots means the lots in the subdivision either individually or collectively, as the case may be. F. Mobile Home means moveable or portable unit for residential purposes constructed to be towed on its own chassis and designed to be installed with or without a permanent foundation for human occupancy as a residence. G. Owner shall mean and refer to the record Owner, whether one or more persons or entities. of fee or equitable or beneficial title to any Lot. Owner shall include the purchaser of a Lot under an executor's contract for purchase. The foregoing definition does not include persons or entities that hold interests in any Lot as security for the performance of an obligation. H. The Plat means the plat of record referred to above, as may hereafter be amended. I. The Property means the real property described above, or any part thereof. J. A Quorum shall mean a minimum of 60% of the Owners in good standing as of the date of the respective vote. To be in good standing, the Owner shall not be delinquent in his or her payment of Assessments (as defined herein) or other charges, and such Owner shall not otherwise be in violation of this Declaration. III PROPERTY OWNERS ASSOCIATION A. There is hereby created The REDLANDS VILLAS Property Owners Association. The purpose of the Association is to: maintain their own property, being the entryway, landscaping and open areas; including any entryway and landscaping replacements, as further defined in Part 6. G.; maintain easement Tract; and maintain and fence, as determined to he necessary by the Association, ; maintain any subdivision perimeter fences (but not individual lot owner fences); and to act as the Architectural Control Committee in accordance with the provisions of Part 5 of this Declaration. B. Each and every Lot Owner, in accepting a deed or contract for any Lot, whether or not it shall be so expressed in such deed or contract, automatically becomes a member of the Association, and agrees to be bound by such reasonable rules and regulations as may, from time to time, be established by the Association. Member shall be appurtenant and may not be separated from ownership of the Lot. The rights and obligations of an Owner and membership in the Association shall not be assigned, transferred, pledged, conveyed or alienated in any way, except upon transfer of ownership of such Lot, whether by interstate succession, testamentary disposition, foreclosure of a mortgage, or such other legal processes as now in effect or as may be hereafter established pursuant to the laws of the State of California. The Association shall be operated and conducted on a strictly cooperative and non-profit basis. Each Lot Owner as a member shall have such voting rights as set forth in this Declaration. C. In furtherance of its purposes, which are generally as set forth above, the Association shall provide necessary and appropriate action for the maintenance, repair, replacement and management of the facilities referred to in Paragraph A above and shall have the right to enter upon a Lot , if reasonably necessary, in order to accomplish its purpose. D. The Association shall have the power to borrow and encumber its assets and, in all respects, shall have the powers necessary to carry out its purposes, whether or not specifically set forth herein, including the power to enter into contracts with third parties to perform all or part of its functions, and to hire its own employees to do so. E. All sums assessed by the Association chargeable to a Lot, but unpaid, shall constitute a lien on such Lot prior to all other liens excepting only ad valorem liens in favor or a governmental assessing unit or special assessment district. The Association lien may be foreclosed by the Association in a like manner as a foreclosure of a real property deed of trust. The Association shall have the power to bid on the delinquent Lot at a foreclosure sale, and acquire, hold, lease, encumber and convey same. A suit to recover a money judgment for unpaid assessments and charges shall be maintainable by the Association without foreclosing or waiving the lien securing same. F. The total number of votes in the Association shall be on the basis of one (1) vote per Lot. The total number of Lots and therefore the total number of votes may be increased from time to time by expansion of the subdivision as evidenced by a Supplemental Declaration, incorporating this otherwise specifically provided herein, except as otherwise provided for herein or within the Bylaws, all other Association matters shall be determined by a majority vote of a quorum of Owners. If more than one party is the Owner of a Lot, there must be unanimous agreement among those who own an interest in the Lot as to how to cast that Lots vote, otherwise, that vote shall not be counted. G. The Association shall have the power to adopt Bylaws and to appoint its officers and directors, as well as promulgate reasonable regulations relating to the matters within its purpose. H. Where the holder of a first mortgage or record obtains title to the Lot as a result of foreclosure, or deed in lieu of foreclosure, of said first mortgage, such acquirer of title, its successors and assigns, shall not be liable for the share of the expenses of the assessments by the Association chargeable to such Lot which became due prior to the acquisition of title to such Lot by such acquirer. As used in this Declaration, the term Mortgage shall include Deed of trust and mortgagee shall include the Beneficiary under a deed of trusts. Such acquirer shall be responsible, as any Owner, for assessments charged subsequent to the acquisition. I. In the event the event the Association determines that any Lot Owner has not complied with the provisions of this Declaration, then the Association may, at its option, give written notice to the Owner of the conditions complained of The Owner shall correct same or, it not readily correctable within fifteen (15) days after notice from the Association; the Owner shall submit corrective plans proposing its remedy to the condition complained of within fifteen days after notice from the Association. The Association shall approve or disapprove any plans submitted by the Owners and set forth a reasonable time for correction of the condition complained of In the event such condition is not corrected according to the approved plans, within the allotted time, the Association shall have the right to undertake to remedy such condition or violation complained of. The cost thereof shall be deemed to be an assessment to such Owner and enforceable by the Association as if any other unpaid assessment. The Association is hereby granted the right of entry on the affected Lot to so correct the condition or violation complained of. IV LIENS AND ASSESSMENTS, RESERVE ACCOUNT A. Creation of Lien and Personal Obligation of Assessments and Maintenance Charges. Each Owner by acceptance of a deed for a Lot (whether or not it shall be so expressed in such deed) is deemed to covenant and agree to pay to the Association the following assessments and charges as provided herein: (I) annual assessments established by this Part; (2) special assessments for capital improvements or other extraordinary expenses or costs established by this Part; and (3) maintenance charges. All such assessments shall be established and collected as hereafter provided. The annual assessments, special assessments, and maintenance charges (sometimes hereafter referred to collectively as the Assessments and individually as the Assessment). together with interest, costs, and reasonable attorneys fees, shall be a charge, continuing servitude and lien upon the Lot against which each such Assessment is made. No diminution or abatement of Assessments or set-off shall be claimed or allowed by reason of the alleged failure of the Association, the Committee or the Board to take some action or perform some function under this Declaration, the Articles. Bylaws or any other controlling document, or for inconvenience or discomfort arising from the making of repairs or improvements which are the responsibility of the Association, or from any action taken to comply with any law or ordinance or with any order or directive of any municipal or other governmental authority. Each such Assessment, together with interest, costs and reasonable attorney's fees, shall also be the personal obligation of the person who was the Owner of the Lot at the time the Assessment was due. The personal obligation for delinquent Assessments shall not pass to the successors in title of the Owner unless expressly assumed by such successors; however, the obligation to pay the Assessments shall be a continuing lien on the Lot, excepting for the provisions of Part 3(H), relating to mortgagees. B. Purpose of Assessments; Reserve Funds. The Assessments shall be used exclusively by the Association for the improvement and maintenance of the Common Areas and any other areas for which the Association is responsible, the promotion of the recreation, health, safety and welfare of the Owners and occupants of the Property, the operation and administration of the Association and for the common good of the Property. Annual Assessments shall include a reasonable Reserve Fund for taxes, insurance, maintenance, repairs and replacement of the Common Areas and all other areas for which the Association is responsible. Reserve Funds collected by the Association shall be deposited into one (1) or more federally insured bank accounts (Reserve Accounts) and shall be segregated from the Association's general operating account(s). C. Annual Assessments. (i) Annual Bdget: Delivery to Ileinhership. The Association shall annually determine and fix the amount of the annual assessment atainst each Lot and shall notify the Owner of each Lot, in kV ritirw, as to (i) the amount of such annual assessment and (ii) the fractional payment cycle for the annual assessment (e.g., quarterly or monthly). The written notice shall be provided to each Owner not less than thirty- (30) days prior to the date that such annual assessment is to commence. The Association shall maintain a summary of the Associations finances for each fiscal year. In addition to including amounts for the estimated common expenses and cash requirements for the Association. each budget may also provide for a reserve for contingencies and a reserve for replacements, all in such amounts as shall be determined by the Association to be reasonably adequate, taking into account the number and nature of replaceable property within the Common Areas and other areas for which the Association is responsible, the expected life of such item and each item's expected repair or replacement cost. Not later than sixty (60) days following the adoption of the annual budget for the year in question, the Association shall deliver a copy of the statement of the amount of the annual assessment to be levied against the Owner's Lot for the fiscal year in question to each Owner. In the event the Association fails to adopt a budget for any fiscal year prior to commencement of the fiscal year, then until and unless a budget is adopted, the budget (and the amount of the annual assessment provided for therein) for the year immediately proceeding shall remain in effect. (ii) Reserve Studies. The Association may periodically obtain reserve studies and updates to assist in determining an appropriate amount for repair and replacement reserves for the Association; provided, however: (i) the results of any such studies and reports shall he advisory only and the Association shall have the right to provide for reserves which are greater or less than those shown in the study; and, (ii) in establishing any replacement and repair reserves for the Association, in addition to the recommendations of any such studies or reports and other relevant factors, the Association may take into account (a) the amount of annual assessments for the Property as compared to other comparable developments; (b) the past incidences of required repairs at the Property; and, (c) projected funds available to the Association. D. Special Assessments for Capital Improvements and Extraordinary Expenses. In addition to the annual assessments authorized above, the Association may levy, in any Assessment period, a special assessment applicable to that Assessment period only for the purposes of: (i) defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area, including fixtures and personal property related thereto; (ii) defraying other extraordinary expenses; or, (iii) repaying any borrowed amounts; provided that any such special assessment must have the prior written consent of two-thirds (2/3) of the votes of the Owners then eligible to vote. The provisions of this section shall not preclude or limit the assessment, collection or use of the annual assessments for the aforesaid purposes. E. Uniform Rate of Assessment. Except as hereinafter specifically provided herein, the amount of any Assessment shall be fixed at a uniform rate per Membership. The Assessments may' be collected on a monthly. quarterly, or annual basis. F. Notice and Quorum for Any Action Authorized Under Part 4(d). Written notice of any meeting called for the purpose of taking any action authorized under Part 8(d) shall be sent to all Members subject to such Assessment no less than ten (10) days nor more that fifty (50) days in advance of the meeting. At the first such meeting called, the presence of Members or of proxies entitled to cast sixty percent (60%) of all the votes (exclusive of suspended voting rights) shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting. G. Rules Regarding Billing and Collection Procedures. The Association shall have the right to adopt rules and regulations setting forth procedures for the purpose of making the Assessments provided herein, for the billing and collection of the Assessments, provided that said procedures are not inconsistent with the provisions hereof. The failure of the Association to send a bill to an Owner shall not relieve any Owner of his liability for any' Assessment or charge under this Declaration, but the Assessment lien therefore shall not he foreclosed or otherwise enforced until the Owner has been given not less than thirty (30) days written notice, prior to such foreclosure or enforcement at the address of the Owner on the records of the Association, that the Assessment, or any installment thereof is, or will be, due, and of the amount owing. Such notice may be given at any time prior to or after delinquency of such payment. The Association shall be under no duty to refund any payments received by it even though the Owner of a Lot changes during an Assessment period; successor Owners of Lots shall be given credit on a prorated basis for prepayments made by prior Owners. If the Owner becomes liable for payment of an increased sum pursuant to this Part during the Assessment period, he or she shall notify the Association, but his or her failure to notify the Association shall not relieve him or her of the liability for such amounts. H. Collection Costs and Interest on Delinquent Assessments. Any Assessment or installment thereof not paid within thirty (30) days after the date such Assessment or installment is due shall be deemed delinquent and shall bear interest and a late fee, from date of delinquency. The interest rate and amount of late fee shall be determined by the Association, subject to applicable law, and the Owner shall be liable for all costs, including attorneys fees, which may be incurred by the Association in collecting the same. The Association also may, but is not obligated to, record a Notice of Delinquent Assessment against any Lot as to which an Assessment delinquent and constitutes a lien and may establish a forced fee to reimburse the Association for the Association=s cost in recording such Notice, processing the delinquency and recording a notice of payment, which fixed fee shall be treated as a collection cost of the Association secured by the Assessment lien. I. Transfer Fee. Each purchaser of a Lot shall pay to the Association immediately upon becoming the Owner of the Lot a transfer fee in an amount not to exceed one-half (1/2) of the then current Annual Assessment against the Lot, which amount shall be used by the Association in connection with such transfer and to supplement the Associations Reserve Fund. The transfer fee shall be in addition to. and shall not be offset against or considered as an advance payment of, any Assessment levied by the Association pursuant to this Declaration, and the payment of such transfer fee shall not entitle purchaser to the return of any working capital and reserve payments made to the Association. J. Association as Enforcing Body. The Association as the agent and representative of the Owners, shall have the exclusive right to enforce the provisions of this Declaration. However, if the Association shall fail or refuse to enforce this Declaration or any provision hereof for an unreasonable period of time after written request to do so, then any Owner may enforce them on behalf of the Association, by any appropriate action, whether in law or in equity but not at the expense of the Association. K. Associations's Remedies to Enforce Payment of Annual Assessments, Special Assessments and Maintenance Charges. If any Owner fails to pay any Assessment or installments when due, the Association may enforce the payment of such Assessment(s) and/or the Assessment lien by taking either or both of the following actions, concurrently or separately (and, by exercising either of the remedies hereinafter set forth, the Association does not prejudice or waive its right to exercise the other remedy): Bring an action at law and recover judgment against the Owner personally obligated to pay the Assessments; and (ii) Foreclose the Assessment lien against the Lot in accordance with the prevailing California law relating to the foreclosure of realty mortgages or deeds of trust (including, where applicable, the right to recover any deficiency) and, if foreclosed as a realty mortgage, the Lot may be redeemed after foreclosure sale as provided by law. L. Subordination of Assessment Lien to First Mortgage or Deed of Trust; Priority of Lien. The Assessment lien provided for herein shall be subordinate to any first mortgage lien held by, or deed of trust of which the beneficiary is, a lender who has lent funds with the Lot as security, or held by the lenders successors and assigns, and shall also be subject and subordinate to liens for taxes and other public charges which by applicable law are expressly made superior. Except as above provided, the Assessment lien shall be superior to any and all charges, liens or encumbrances which hereafter in any manner may arise or be imposed upon each Lot. Sale or transfer of any Lot shall not affect the Assessment lien; provided, however, that if the sale or transfer is pursuant to foreclosure of a mortgage or deed of trust to which the Assessment lien is subordinate, or pursuant to any sale or proceeding in lieu thereof, the purchaser at the mortgage foreclosure or deed of trust sale. or any grantee taking by deed in lieu of foreclosure, shall take the Lot free of the Assessment lien for all Assessments that have accrued up to the date of issuance of a sheriffs or trustees deed or deed in lieu of foreclosure; but upon the date of issuance of a sheriffs or trustees deed or deed in lieu of foreclosure, the Assessment lien immediately shall become and remain superior to any and all other charges, liens or encumbrances (except liens for taxes or other public charges which by applicable law are expressly made superior), and such mortgage or deed of trust foreclosure sale purchaser or grantee shall take subject to all Assessments and the Assessment Lien thereof accruing subsequent to the date of issuance of a sheriffs or trustees deed or deed given in lieu of foreclosure. M. Costs to be Borne by Member in Connection with Enforcement of Payment of Assessments. In any action taken pursuant to this Part, the Owner shall be personally liable for, and the Assessment lien shall be deemed to secure the amount of. the Assessments together with the Associations collection costs and attorney fees. V EXPANSION The Association reserves the right to comparably develop adjacent land and incorporate said adjacent land within this Declaration by specific references thereto. Any such expansion to be included within this Declaration shall be subject to the terms and conditions of this Declaration, but may include reasonable variances. VI ARCHITECTURAL AND DESIGNS CONTROL No Lot leveling, excavation, grading, planting, landscaping, residence, outbuilding, fence, or wall, or other improvement or installation, shall be commenced, erected, placed, or altered on any Lot, until the plans and specifications therefore, showing the nature, kind, shape, materials, floor plans, and locations shall have been submitted to and approved by the Architectural Control Committee (Committee) and a copy thereof is finally approved and lodged permanently with the Committee. The Committee shall have the right to refuse to approve any such plans or specifications which are not suitable or desirable in its opinion for aesthetic reasons, or not in accordance with the overall theme of Redland Villas, or any other reason, and in so passing upon such plans and specifications it shall have the right to take into consideration the suitability of the proposed building or other structure and the material which is to be used, the site upon which it is proposed to be erected, the harmony with the surroundings, and the effect of the proposed structure on the outlook from adjacent or neighboring property. All plans must comply with San Bernardino County requirements. (A) Membership. The Committee shall consist of no fewer than three (3) and no more than seven (7) members, as determined by a majority vote of the Association. At least one (1 ) committee member shall be a licensed architect. a licensed contractor, a registered engineer, or a professional land planner. Members of the Committee shall be appointed by and shall serve at the pleasure of the Association. (B) Procedure: Action by the Committee. The Committee approval or disapproval as required in this Declaration shall be in writing, final and the Association shall keep a permanent record of all such action. At any meeting of the Committee, three (3) members (either in person or via conference call or other similar method) shall constitute a quorum, which quorum is necessary for Committee action. The vote or written consent of a majority of the quorum of members present shall constitute action by the Committee. In the event the Committee or its designated representative fails to approve or disapprove any submittal within sixty (60) days of the submittal date, such submittal shall be deemed approved. Furthermore, the following is added as new Part VI: (C) Indemnification. THE OWNERS ACKNOWLEDGE THAT: (l) THE PROPERTY SUBJECT TO THIS DECLARATION CONTAINS COMMON AREAS; (2) THE COMMON AREAS ARE INTENDED SOLELY FOR AESTHETIC PURPOSES AND LIMITED RECREATIONAL USE; (3) THE COMMON AREAS POSSESS CERTAIN INHERENT DANGERS FROM WHICH THE OWNERS MUST TAKE PRECAUTIONS TO PROTECT THEMSELVES, THEIR FAMILIES, INVITEES, GUESTS AND OTHERS; (4) NO SAFETY PERSONNEL WILL PATROL THE COMMON AREAS AND THE OWNERS ASSUME THE RISK AND THE RESPONSIBILITY OF PROTECTING THEMSELVES, THEIR FAMILIES, INVITEES, GUESTS OR OTHERS; AND (5) THE OWNERS WILL INDEMNIFY, DEFEND AND HOLD HARMLESS THE ASSOCIATION AND ITS OFFICERS AND DIRECTORS AND THE COMMITTEE (AND ITS MEMBERS) FROM AND AGAINST ANY CLAIMS, LIABILITIES, INJURIES, DAMAGES, EXPENSES AND COSTS, INCLUDING INTEREST AND ATTORNEYS FEES, INCURRED BY OR CLAIMED AGAINST THE ASSOCIATION AND ITS OFFICERS AND DIRECTORS AND COMMITTEE (AND ITS MEMBERS) UNDER ANY LAWS ARISING IN ANY WAY FROM OR IN CONNECTION WITH THE COMMON AREAS. EVERY DIRECTOR, OFFICER AND AGENT OF THE ASSOCIATION AND THE COMMITTEE (AND ITS MEMBERS) SHALL BE INDEMNIFIED BY THE ASSOCIATION AND TILE OWNER(S) (AND TILE ASSOCIATION AND OWNER(S) SHALL DEFEND AND HOLD HARMLESS SUCH PERSON(S)) AGAINST ALL EXPENSES AND LIABILITIES, INCLUDING ATTORNEYS FEES. INCURRED BY OR IMPOSED UPON HIM OR HER IN CONNECTION WITH ANY PROCEEDING TO WHICH HE OR SHE MAY BE A PARTY, OR IN WHICH HE OR SHE MAY BECOME INVOLVED, BY REASON OR SUCH PERSON BEING OR HAVING BEEN A DIRECTOR, OFFICER OR AGENT OF THE ASSOCIATION, OR ANY SETTLEMENT THEREOF, WHETHER OR NOT SUCH PERSON IS A DIRECTOR, OFFICER OR AGENT AT THE TIME SUCH EXPENSES ARE INCURRED, TO THE FULLEST EXTENT THAT SUCH INDEMNIFICATION IS SPECIFICALLY PROVIDED FOR BY THE LAWS OF THE STATE OF CALIFORNIA THEN IN EFFECT. THE FOREGOING RIGHTS OF INDEMNIFICATION SHALL BE IN ADDITION TO AND NOT EXCLUSIVE OF ALL OTHER RIGHTS TO WHICH SUCH DIRECTORS, OFFICERS, MEMBERS OR AGENTS MAY BE ENTITLED. VII GENERAL PROVISIONS A. Right of City to enforce Declarations. The City of Redlands shall have the right, but not the obligation, to enforce compliance with the provisions of this Declaration. B. Right of City to Review and Approve Amendments. The City of Redlands shall have the right to review and approve any proposed amendment or termination of this Declaration when such amendment or termination would alter, amend, terminate or otherwise impair the rights of the City under those terms of this Declaration which satisfy the conditions of approval adopted by the City in approving the tentative tract map for tract 17533. All proposed amendments shall be submitted to the City's Community Development Director, or the Director's designee, and shall be approved in writing by the City Attorney prior to the recordation of such amendment. C. Real Covenants. The covenants, restrictions, reservations, conditions and servitudes contained in this Declaration shall run with the land and shall be binding upon all persons owning, leasing, subleasing or occupying any Lot or Lots after the date on which this instrument shall have been recorded in the Office of the County Recorder of County of San Bernardino, State of CALIFORNIA. The covenants, restrictions, reservations, conditions and servitudes may be enforced by the Owner or lessee of any Lot, by the holder of a Bona Fide First Mortgage on any Lot, by the Association, any one or more of said persons acting jointly; provided, however, that any breach by reasons thereof shall not defeat or adversely affect the lien of a Bona Fide First Mortgage upon any Lot, but each and all said covenants, restrictions, reservations, conditions and servitudes may be enjoined, abated or remedied by appropriate proceeding, notwithstanding the lien or existence of any such Bona Fide First Mortgage. All instruments of conveyance or assignment of any interest in all or any part of the Property shall refer to this instrument and shall be subject to the covenants, restrictions. reservations, conditions and servitudes therein contained as fully as though this instrument were therein set forth in full: provided. however that the terms and conditions of this instrument shall be binding, upon all persons affected by its terms, whether express reference is made to this instrument or not. D. Invalidity. Invalidation of any of these covenants, restrictions, reservations, conditions and servitudes by judgment, court order, or otherwise shall in no way affect the validity of any of the other provisions of this Declaration, all of which shall remain in full force and effect. E. Amendments. This Declaration may be amended during the period ending ten (10) years immediately following, the date of the recording of this Declaration only by instrument executed by the Owners of at least seventy percent of the Lots, included or incorporated within this Declaration, and such amendment shall not be effective until the recording of such instrument. Thereafter, this Declaration may be amended by instrument executed by the Owners of at least two-thirds (1'3) of the Lots. included or incorporated within this Declaration, and such amendment shall not be effective until the recording of such instrument. F. Term. The covenants, conditions, restrictions and servitudes of this Declaration, as the same may he hereafter amended in accordance with the terms hereof, shall remain in full force and effect for a term of twenty (20) years from and after the date of recording of this Declaration, from which time they shall be automatically renewed and extended for Successive periods of ten (10) years each, unless terminated as of the end of such initial twenty (20) years or any successive ten(10) years within the six (6) month period immediately preceding the expiration of such initial period, or any renewal period, by an instrument of termination executed and acknowledged by the Owners of at least two-thirds (2/3) of the Lots, included or incorporated within this Declaration, and recorded in the Office of the San Bernardino County Recorder. VIII GENERAL RESTRICTIONS APPLICABLE TO ALL LOTS A. Land Use. No building other than one single family dwelling residence and a private garage not to exceed 3 cars, and a guest house or servants quarters and other out buildings as approved by the Architectural Control Committee, and as are in compliance with applicable zoning, shall be erected, maintained, placed or permitted on any Lot. No improvements may be commenced without the appropriate building permits having been first obtained. A guest house may not be completed prior to the completion of the single family residential structure. Any guest house, Which may include a kitchen. or servants quarters. shall be for the use of bona fide guests or servants, as the case may be or the occupants of the main residence, or members of such occupants family, and shall not be rented or leased separate from the main residence. B. Completion Time. Construction of a residence shall be finished and completed no later than six (6) months after the issuance of a building permit by the appropriate regulatory body. C. Minimum Sizes. Any single family residential structure or approved improvement placed upon any Lot shall be constructed from new material or its equivalent, and as may be approved by the Committee. Any residential structure, excluding a guest house, shall contain a minimum of one thousand five hundred (1500) square feet of living area, exclusive of carport, garage, open porches and patio. D. Location. No improvements shall be erected or placed on any Lot outside of the designated building envelope as shown on the map attached as Exhibit AA. without approval of the Architectural Control Committee. It being understood that the building envelope lines and all other use restrictions contained in this Declaration are in addition to zoning and other land use regulations adopted by governmental authorities and the more restrictive must be followed. E. Mobile Homes. Mobile homes shall not be permitted to be placed on any Lot permanently of temporarily. F. Temporary Structures. No structure of a temporary character. motor home, recreational vehicle or travel trailer, regardless of its nature or form, shall be used as a residence at any time. G. Entryway and Landscaping. Entryway, landscaping areas, open areas (Tracts 17533), private driveways (Tracts 17533) as designated on the subdivision plat, whether as separate parcels or easements, shall be the sole responsibility of the Association to maintain, repair and reconstruct as set forth in Part 3 of the Declaration. The Association shall have the right to convey any such easements and/or common parcels. Prior to any such conveyance, the Association shall be responsible for any improvements and maintenance. Upon such conveyance the Association shall be responsible for any real estate taxes and charges. H. Signs. No signs or billboards used as advertising or promotional devise, except those used in the sale of Lots in the subdivision or those permitted by the applicable sign ordinances for the sale or rental of property by the Owner(s) or his or her agent, shall be placed on any Lot or portion thereof. I. Public Events. No public events shall be held at the subdivision. J. Livestock and Poultry. No horses, livestock or poultry shall he allowed. Only normal household pets in reasonable numbers shall he allowed. No pet shall be allowed that creates a hazard or nuisance to Owners or other Lots in the subdivision. K. Garbage and Refuse Disposal. No Lot shall he used or maintained as dumping ground for rubbish. Trash, garbage, or other waste shall not be kept except in sanitary conditions whether below ground level or within an approved screened area and promptly removed. All equipment for the storage of such material shall be kept in a clean and sanitary condition. No burning of trash shall be permitted on any Lot. L. Protective Screening. All clotheslines, equipment, propane tanks, service yards. wood piles and storage areas shall be kept screened by adequate planting or fencing so as to conceal them from view of neighboring Lots or streets. Fences, walls, hedges, or shrubs not to exceed six (6) feet in height, may be erected or planted up to the property lines, except in the front yard setbacks and the side yard setbacks adjacent to streets which shall be limited to four (4) feet in height. No laundering will be permitted except inside an approved structure with approved plumbing. M. Parking and Storage. Boats, boat trailers, camping trailers, campers, travel trailers or any other recreational vehicles, sporting or camping equipment shall be stored or parked. other than within the building envelope and be screened from neighbors view. There shall be no on-street parking. N. Antennas. No antenna or satellite dish shall be put up in a manner that will disturb the surrounding neighbors and /or property. The placement of any antenna, except as provided below, must have the Architectural Control Committee approval before it is placed on the Lot. The Architectural Committee shall have the final decision on a dispute regarding a Lot Owner's antenna or satellite dish and what effect it has on the surrounding neighbors and/or be a visual detriment to the Property. A normal TV antenna not higher than eight (8) feet above the highest peak of the roof, and a ground mounted satellite dish installed within the building envelope, as referred to in Paragraph D above, shall be permitted without permission of the Architectural Control Committee. 0. Nuisances. No Lot owner shall place or maintain any animate or inanimate object upon any Lot so as to create a nuisance to the Owners of the neighboring Lots. P. Land Clearing. Beyond the building envelope, there shall he no clearing of land (removal of trees or brush) without approval of the Architectural Control Committee. Q. Spark Arresters. Fireplaces will not be approved by the Architectural Committee without appropriate spark arrester equipment. R. Health. Safety. and Welfare. In the event any uses. activities and facilities on any Lot are deemed by the Association to be a nuisance or to adversely affect the health. safety or welfare of Owners or occupants, the Association may make rules restricting or regulating their presence within the Property on any Lot(s). S. Repair of Building. No building or structure on any Lot shall be permitted to fall into disrepair and each such building and structure shall at all times be kept in good condition and repair and adequately painted or otherwise finished by the Owner, unless the obligation for any such repairs or maintenance has been specifically undertake by the Association. In the event any building or structure is damaged or destroyed, then, subject to the approvals required herein, such building or structure shall be immediately repaired or rebuilt or shall be demolished. T. Diseases and Insects. No Owner shall permit any thing or condition to exist upon any Lot that shall induce, breed or harbor infectious plant diseases or noxious insects. U. Motor Vehicles. No Automobile, motorcycle, motorbike or other motor vehicle shall be constructed, reconstructed. repaired, stored or parked upon any Lot or street in the Property, unless screened from the neighbors view and not visible from the Common Areas or the street. V. Environmental Protections. No Owner shall use a Lot or the Property to generate. manufacture, refine, transport, treat, store. handle, dispose, produce or process Hazardous Substances or solid waste, except in compliance with all applicable federal, state, and local laws or regulations. For purposes of this paragraph, A Hazardous Substances shall be deemed to include pollutants or substances defined as A hazardous waste, A hazardous substances, A hazardous materials, or A toxic substances in: the Comprehensive Environmental Response, Compensation and Liability Act of 1980 as amended by the Superfund Amendment and Reauthorization Act of 1986 (PL 99-499); the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Toxic Substance Control Act, 15 U.S.C. Section 2601. et seq.; the Resource Conservation and Recovery Act, as amended, 42 U.S.C. Section 6901, et seq.; the California Environmental Quality Act, Laws 1986, Chap. 368; and in the rules, regulations or guidelines adopted or promulgated pursuant to said laws. IX ALTERNATE DISPUTE RESOLUTION Any dispute or claim between the Association and any Owner in which the Owner claims that the Association has not complied with California law in enforcing this Declaration, including any such claim based on contract. tort, or statute, arising out of or relating to the rights or duties of the parties under this Declaration (a Dispute), shall be subject first to mediation and then arbitration as set forth in this Part prior to any party to the Dispute instituting litigation with regard to the Dispute. Provided, however. that this provision shall not limit the binding nature of any design, architectural or related decision of the Architectural Control Committee. (a) Alediation. The party instituting the Dispute (the Disputing Party) shall submit the Dispute to mediation pursuant to the mediation procedures adopted by the American Arbitration Association or any successor thereto or to any other independent entity providing similar services upon which the parties to the Dispute may mutually agree. No person shall serve as a mediator in any Dispute in which such person has a financial or personal interest in the result of the mediation, except by the written consent of all parties to the dispute. Prior to accepting any appointment, the prospective mediator shall disclose any circumstances likely to create a presumption of bias or to prevent a prompt commencement of the mediation process. The party producing such witnesses shall pay the expenses of witnesses for either side. All other expenses of the mediation, including, but not limited to, the fees and costs charged by the mediator and the expenses of any witnesses or the cost of any proof or expert advice produced at the direct request of the mediator, shall be borne equally by the parties to the Dispute unless agreed to otherwise. Each party to the Dispute shall bear its their own attorneys fees and costs in connection with such mediation. (b) Arhifration. If the parties cannot resolve their Dispute pursuant to Mediation, the Disputing Party shall have thirty (30) days following termination of mediation proceedings (as determined by the mediator) to submit the Dispute to arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association. If the Disputing Party does not submit the Dispute to arbitration within thirty (30) days after termination of mediation proceedings. the Disputing Party shall be deemed to have waived any claims related to the Dispute and all parties to the Dispute shall be released and discharged from any and all liability to the Disputing Party on account of such Dispute; provided, nothing herein shall release or discharge such party or parties from any liability to Persons not a party to the foregoing proceedings. The existing parties to the Dispute shall cooperate in good faith to ensure that all necessary and appropriate parties are included in the arbitration proceeding. Subject to the limitations imposed in this Paragraph, the arbitration proceedings shall be heard in Gila County. A single arbitrator shall be selected in accordance with the rules of the American Arbitration Association from panels maintained by the Association with experience in relevant matters that are the subject of the Dispute. The arbitrator shall not have any relationship to the parties. The parties to the Dispute shall meet to select the arbitrator within ten (10) days after service of the initial complaint on all defendants named therein. The arbitrator shall promptly commence the arbitration proceeding at the earliest convenient date in light of all of the facts and circumstances and shall conduct the proceeding without undue delay. Notwithstanding contrary provisions of the Commercial Arbitration Rules. the arbitrator in any proceeding shall not have the power to award punitive or consequential damages; however, the arbitrator shall have the power to grant all other legal and equitable remedies and award compensatory damages. The arbitrators award may he enforced as provided for in the Uniform Arbitration Act, A.R.S. 12-1501, et seq., or such similar law governing enforcement of awards in a trial court as is applicable in the jurisdiction in which the arbitration is held. The arbitrator shall have the power to hear and dispose of motions, including motions to dismiss, motions for judgment on the pleadings, and summary judgment motions, in the same manner as a trial court judge, except the arbitrator shall also have the power to adjudicate summarily issues of fact or law including the availability of remedies, whether or not the issue adjudicated could dispose of an entire cause of action or defense. Each party to the Dispute shall bear all of its own costs incurred prior to and during the the arbitration proceedings, including the fees and costs of its attorneys or other representatives, discovery costs, and expenses of witnesses produced by such party. Each party to the Dispute shall share equally all charges rendered by the arbitrator unless otherwise agreed to by the parties. Nothing in this Part 8 shall be considered to toll, stay, reduce, or extend any applicable statute of limitations. If the parties to a Dispute resolve such Dispute through Mediation or Arbitration and any party thereafter fails to abide by the terms of such Mediation or Arbitration, then the other party to the Dispute may file suit or initiate administrative proceedings to enforce the terms of such Mediation or Arbitration without the need to again comply with the procedures set forth in this Part 8. In such event, the party taking action to enforce the terms of the Mediation or Arbitration shall be entitled to recover from the non-complying party (ies) all costs incurred to enforce the terms of the Mediation or Arbitration, without limitation, attorneys fees and court costs. X EFFECTIVE DATE This Amendment shall be effective upon recording in the Records of San Bernardino County, California. 1 „___----.waA, Rant4sstsmmt1 IN WITNESS WHEREOF, the undersigned have executed these COVENANTS, CONDITIONS & RESTRICTIONS as of the date first above written. 1711.Wk at z- Ar Printed Name: Signature Secretary/Treasurer The REDLANDS VILLAS Property Owners Association A ) STATE OF ) ss. COUNTY OF 111\114:0 ki-)C On this the day of f\it,i:Natl*:*„ 2000—, before me, the undersigned Notary Public, personally appeared who acknowledged himselffhorself to be the person who executed the foregoing instrument. My Commission Expires z..), lAcezz Notar ubli „ - rrr rrrmr'Jr *31c!1-t:riL: Calm V'r 7, -171