PIA No. 2011-02 - Civic Rancho Meadows• bs `�
RECENED
p�� 1 1 FcCC'D
RECORDING REQUESTED BY: RIND
City of Gilroy ENGINES
WHEN RECORDED, MAIL TO:
Shawna Freels
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
DOCUMENT: 21482966
Pages:
Fees.... 45.00
Taxes...
Copies..
AMT PAID 45.00
REGINA ALCOMENDRAS
SANTA CLARA COUNTY RECORDER
Recorded at the request of
City
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
RDE # 001
1/03/2012
1 102 AM
Property Improvement Agreement No. 2011 -02
RANCHO MEADOWS IV — Tract 10076
APN: 783 -20 -061 -
Civic Rancho Meadows, LLC, a California limited liability company
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PROPERTY IMPROVEMENT AGREEMENT
RESIDENTIAL
AGREEMENT FOR EXTENSIONS OF WATER DISTRIBUTION SYSTEMS:
IMPROVEMENT OF STREETS: INSTALLATION OF SEWERS, STORM
DRAINS AND OTHER PUBLIC WORKS FACILITIES
Property Improvement Agreement No. 2011 -02
This Property Improvement Agreement ( "Agreement ") is made and entered into this5th day of
December, 2011, by and between the City of Gilroy, a municipal corporation, herein called the "City"
and Civic Rancho Meadows, LLC, a California limited liability company, herein called the "Owner ".
WHEREAS, a final map of subdivision, record of survey or building permit (Site Clearance)
application has now been submitted to the City for approval and acceptance, covering certain real estate
and property improvements known as and called: Rancho Meadows IV, Tract 10076, APN: 783 -20 -061,
and more particularly described on Exhibit A attached hereto and made a part hereof (the "Property ") and
as described in the project improvement plans entitled Rancho Meadows IV, Tract 10076.
WHEREAS, Owner requires certain utilities and public works facilities in order to service the Property
under the minimum standards established by the City and,
WHEREAS, the City, by and through its City Council, has enacted certain Codes, Ordinances and
Resolutions and certain Rules and Regulations have been promulgated concerning the subject matter of
this Agreement and,
WHEREAS, the City has certain responsibilities for maintenance and operation of such utilities and
public service facilities after acceptance by City, and for providing the necessary connecting system, general
plant and appurtenances, and the City is agreeing to discharge those responsibilities, provided that Owner has
faithfully and fully complied with all of the terms, covenants, conditions to be performed by Owner pursuant to
this Agreement.
NOW THEREFORE, in consideration of the foregoing premises and in order to carry on the intent and
purpose of said Codes, Ordinances, Resolutions and Regulations, it is agreed by and between the parties as
follows:
SECTION l
That all Codes, Ordinances, Resolutions, Rules and Regulations and established policies of the City and
the laws of the State of California and the United States of America concerning the subject matter of this
Agreement are hereby referred to and incorporated herein to the same effect as if they were set out at length
herein. Said Codes, Ordinances, Resolutions, Rule and Regulations include, but are not limited to, the
following: the Code of the City of Gilroy, the current Zoning Ordinance, and the currently adopted Uniform
Building Code.
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SECTION 2
The Owner agrees:
a. To perform each and every provision required by the City to be performed by the Owner in each and
every one of said Codes, Ordinances, Resolutions, Rules and other Regulations and to comply with
the foregoing and all applicable laws.
b. To grant to the City without charge, free and clear of encumbrances, any and all easements and
rights of way in and to the Property necessary for the City in order that its water, electricity, and/or
sewer lines in or to said Property may be extended.
c. To indemnify, defend with counsel of City's choice and hold the City free and harmless from all
suits, fees, claims, demands, causes of action, costs, losses, damages, liabilities and expenses
(including without limitation attorneys' fees) incurred by City in connection with (i) any damage
done to any utility, public facility or other material or installation of the City on said Property which
the Owner or any contractor or subcontractor of the Owner, or any employee of the foregoing, shall
do in grading or working upon said Property; or (ii) arising or resulting directly or indirectly from
any act or omission of Owner or Owner's contractors, or subcontractors, or any employee of the
foregoing in connection with the work performed by them in connection with this Agreement,
including without limitation all claims relating to injury or death of any person or damage to any
property.
d. To construct and improve all public works facilities and other improvements described in this
Agreement and the improvement plans submitted to the City of Gilroy in furtherance of this
Agreement on file with the City of Gilroy. All construction and improvements shall be
completed in accordance with all standards established in the Codes, Ordinances,
Resolutions, Rules and Regulations, all applicable laws and this agreement, and in
accordance with the grades, plans, and specifications approved by the City Engineer. Owner
shall furnish two good and sufficient bonds, a Payment Bond on a form provided by the City
and a Faithful Performance Bond, both of which shall be secured from a surety company
admitted to do business in California. Each bond shall set forth a time period for
performance by the contractor of its obligations and the terms and conditions on which the
City may obtain the proceeds of the bond.
The Faithful Performance Bond shall be in an amount not less than one hundred percent
(100 %) of the total estimated amount payable for the improvements described in this
Agreement, and shall secure payment to City and the Owner of any loss due to the default of
the contractor or its inability or refusal to perform its contract. The performance bond shall
by its terms remain in full force and effect for a period of not less than one year after
completion of the improvements by Owner and acceptance of the improvements by City, to
guarantee the repair and replacement of defective material and faulty workmanship. Upon
completion of the improvements by Owner and acceptance of the improvements by City,
Owner may substitute for the performance bond securing maintenance described above, a
separate maintenance bond issued by an admitted surety in the amount of ten percent (10 %)
of the total contract price of the improvements (provided that the amount of said bond shall
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not be less than One Thousand Dollars ($1,000) to cover the one -year maintenance period.
The Payment Bond shall be in an amount not less than one hundred percent (100 %) of the
total estimated amount payable for the improvements described in this Agreement. The
Payment Bond shall secure the payment of those persons or entities to whom the Owner may
become legally indebted for labor, materials, tools, equipment or services of any kind used or
employed by the contractor or subcontractor in performing the work, or taxes or amounts to
be withheld thereon. The Payment Bond shall provide that the surety will pay the following
amounts should the Contractor or a Subcontractor fail to pay the same, plus reasonable
attorneys' fees to be fixed by the court if suit is brought upon the bond: (1) amounts due to
any of the persons named in California Civil Code Section 3181; (2) amounts due under the
Unemployment Insurance Code with respect to work or labor performed for the
improvements described in this Agreement; and (3) any amounts required to be deducted,
withheld, and paid over to the Employment Development Department from the wages of
employees of the Contractor and Subcontractors pursuant to Section 13020 of the
Unemployment Insurance Code with respect to the work and labor. The Payment Bond shall,
by its terms, inure to the benefit of any of the persons named in Civil Code Section 3181 so
as to give a right of action to those persons or their assigns in any suit brought upon the bond.
Simultaneously with the submission of its building permit application (Site Clearance), the
Owner shall submit the following for both the surety that furnishes the Payment Bond and
the surety that furnishes the Faithful Performance Bond: (1) a current printout from
California Department of Insurance's website (www.insurance.ca.gov) showing that the
surety is admitted to do business in the State; or (2) a certificate from the Clerk of the County
of Santa Clara that the surety's certificate of authority has not been surrendered, revoked,
canceled, annulled, or suspended or in the event that it has, that renewed authority has been
granted.
e. Except as otherwise expressly provided in this Agreement, all plan check and inspection fees which
are payable by Owner pursuant to the attached comprehensive fee schedule are due and payable to
the City prior to Council approval of the final map of the subdivision. Upon approval of the record
of survey or the building permit covering the real estate to be improved and before any work is done
therein, the Owner shall pay to the City all other sums payable by Owner pursuant to the attached
comprehensive fee schedule.
f. At all times during the term of this Agreement and until the improvements constructed by Owner are
accepted by City, Owner shall, at no cost to City obtain and maintain (a) a policy of general liability
and property damage insurance in the minimum amount of One Million Dollars ($1,000,000),
combined single limit for both bodily injury and property damage; (b) workers' compensation
insurance as required by law; and (c) broad form "Builder's Risk" property damage insurance with
limits of not less than 100% of the estimated value of the improvements to be constructed by Owner
pursuant to this Agreement.
All such policies shall provide that thirty (30) days written notice must be given in advance to City
prior to termination, cancellation or modification. The insurance specified in (a) above shall name
City as an additional insured and the insurance specified in (c) shall name City as a loss payee, and
shall provide that City, although an additional insured or loss payee, may recover for any loss
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suffered by reason of the acts or omissions of Owner or Owner's contractors or subcontractors or
their respective employees. Owner hereby waives, and Owner shall cause each of its contractors and
subcontractors to waive, all rights to recover against City for any loss or damage arising from a
cause covered by the insurance required to be carried pursuant to this Agreement or actually carried
by Owner in connection with the work described in this Agreement, and will cause each insurer to
waive all rights of subrogation against City in connection therewith. All policies shall be written on
an occurrence basis and not on a claims made basis and shall be issued by insurance companies
acceptable to City. Prior to commencing any work pursuant this Agreement, Owner shall deliver to
City the insurance company's certificate evidencing the required coverage, or if required by City a
copy of the policies obtained.
SECTION 3
That all the provisions of this Agreement and all work to be done pursuant to the terms of this
Agreement are to be completed to City's satisfaction within one year from and after the date and year of
this Agreement first above written. Owner shall maintain such public works facilities and other
improvements described in this Agreement at Owner's sole cost and expense at all times prior to
acceptance by City in a manner which will preclude any hazard to life or health or damage to property.
SECTION 4
That the faithful and prompt performance by the Owner of each and every term and condition contained
herein is made an express condition precedent to the duty of the City to perform any act in connection
with this transaction, and the failure, neglect or refusal of the Owner to so perform, or to pay any monies
due hereunder when due shall release the City from any and all obligations hereunder and the City, at its
election, may enforce the performance of any provision herein, or any right accruing to the City or may
pursue any remedy whatsoever it may have under applicable laws or the Codes, Ordinances,
Resolutions, Rules and Regulations of the City, in the event of any such default by Developer.
SECTION 5
That this Agreement, including without limitation the general stipulations outlined in Section 6
below, is an instrument affecting the title or possession of the real property described in Exhibit A and
runs with the land. Except as expressly provided in the second sentence of Item 9 of the general
stipulations set forth in Section 6 below (relating to the payment of reimbursement to the original Owner
named in this Agreement), all the terms, covenants and conditions herein imposed shall be binding upon
and inure to the benefit of City, Owner, the successors in interest of Owner, their respective successors
and permitted assigns and all subsequent fees owners of the Property. The obligations of the Owner
under this Agreement shall be the joint and several obligations of each and all of the parties comprising
Owner, if Owner consists of more than one individual and/or entity. Upon the sale or division of the
Property described in Exhibit A, the terms of this Agreement shall apply separately to each parcel and
the fee owners of each parcel shall succeed to the obligations imposed on Owner by this Agreement.
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SECTION 6
That the following general stipulations shall be completed subject to the approval of the Public
Works Director /City Engineer:
Locate and properly dispose of any wells, septic tanks and underground fuel storage facilities.
NOTE: The capping of any well will require inspection by the Santa Clara Valley Water District.
2. Schedule the construction of improvements along existing public roads so that the work affecting
vehicular traffic is completed with a minimum interruption to traffic.
3. All work within the public right -of -way shall be subject to the approval of the Public Works
Director /City Engineer.
4. Before construction utilizing combustible materials may proceed, an all weather access must be
provided to within 150 feet of the building site; and at least one in service fire hydrant must be
available within 150 feet of each portion of the site wherein this construction is to take place.
Location of the fire hydrants will be determined by the Fire Chief.
5. All work shall be coordinated so that the existing residents on all adjacent streets, including but not
limited to Sprig Way and Rodeo Drive, have access to their properties.
6. Off -site public improvements shall be installed per the approved Improvement Plans.
7. The Owner shall provide to the City of Gilroy electronic files, in a format acceptable to the City
(PDF, DWG format, AutoCAD 2004 maximum) of the final map, tract map and/or parcel map,
improvement plans, and record drawings.
8. Before issuance of any building permit, all roadway infrastructures shall be in place and covered
with an all weather road subject to the approval of the Public Works Director /City Engineer.
9. If there are any reimbursements payable to the Owner, they must be specifically identified in this
Agreement. Any such reimbursements shall be payable to the original Owner named in this
Agreement above, and shall not inure to the benefit of any subsequent owners of all or any portion of
the Property. All reimbursements payable to owner shall be subject to the City's reimbursement
policies and ordinances in effect from time to time, including without limitation any expiration dates
identified in such policies and ordinances. In addition to any other conditions, requirements and
limitations set forth in the City's reimbursement policies and ordinances from time to time, (i) in no
event shall any reimbursements be payable to Owner if City determines in its sole and absolute
discretion from time to time that there are not sufficient reserves then on hand in the specific
reimbursement fund from which Owner's reimbursement is payable, over and above any amounts
anticipated to be required to be expended from such reimbursement fund, which reserves, at a
minimum, are equal to at least half of the remaining average yearly anticipated expenditures of such
reimbursement fund as determined by City from time to time; (ii) City may, in its sole and absolute
discretion, make partial reimbursement payments to Owner in yearly increments, as determined by
City; and (iii) City may defer payments in any given year if projects deemed by City to be of high
importance are determined by City, in its sole and absolute discretion, to be warranted or necessary,
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and the funds in such reimbursement fund are designated by the City for use on such projects of high
importance.
Owner shall be reimbursed Ten Thousand Dollars ($10,000) of the first Thirty Thousand Dollars
($30,000) of the costs and expenses incurred in connection with the initiation and consummation of
the CFD and the levy of the special tax as described in the Landscape Installation and Maintenance
Agreement (LIMA) with respect to the Property. Owner shall deposit the first Thirty Thousand
Dollars ($30,000) with the City not later than ten (10) days after City Council approval of this
Agreement. Reimbursement will be made over time as future developments annex into the CFD and
pay the required formation fee(s).
SECTION 7
The following requirement is in fulfillment of condition # 3 of Tentative Map approval for
application TM_10 -04 as set forth in Resolution No. 2011 -12: Prior to issuance of the first building
permit for this tract and as a condition of issuance of building permits, the owner shall deposit with
the City $50,000 for parks equipment. The Parks and Recreation Commission shall explore the best
use for this financial contribution and submit a recommendation to the City Council. This
requirement herein satisfies the condition that Owner enter into an agreement with the City to
perform this condition prior to final map approval.
SECTION 8
That the attached Development Cost Schedule enumerates all fees and their extensions.
TOTAL AMOUNT DUE CITY $203,961.90 (Minimum, actual amount to be determined)
IN WITNESS WHERf.,OF, City has executed this agreement as of December, 2011.
A TEST: C Y OF GILROY
Pawna ff=eels 7/ Tom Haglund
ii
CITY CLERK CITY ADMINISTRATOR
APPROVED AS TO FORM:
CITY ATTORNEY
IN WITNESS WHEREOF Owner has executed this agreement as of /r 0'?-o l
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OWNER Civic Rancho Meadows, LLC, a California
limited liability company
By: Civic Propert up, Inc., a California
corporatio ' s e er/Manager
By: avid Sanson, President
NOTE: If Developer is a corporation, the complete legal name and corporate seal of the corporation and
the corporate titles of the persons signing for the corporation shall appear above.
Property Improvement Agreement No. 2011 -03
STATE OF CALIFORNIA )
)ss.
COUNTY OF SANTA CLARA
On , before me,
notary public,
personally appeared
who
proved to me on the basis of satisfactory evidence ,,6 be the person(s) whose name(s) is /are subscribed to
the within instrument and acknowledged to me tyk 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
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and
Signature
(seal) /
per GC
40814; CC Sec. 1181
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EXHIBIT A
LEGAL DESCRIPTION
Real property in the City of Gilroy , County of Santa Clara, State of California, described as follows:
REMAINDER PARCEL AS SHOWN ON THE MAP OF "TRACT 9678 ", FILED FOR RECORD ON JUNE 8, 2005,
IN BOOK 787 OF MAPS, AT PAGES 26 AND 27, SANTA CLARA COUNTY RECORDS.
APN: 783 -20 -061
1LAC1855584.1
080911 - 04706089
CALIFORNIA ALL - PURPOSE CERTIFICATE OF AKNOWLEDGMENT
State of: California
County of: Contra Costa
On Nov. 21, 2011 , before me, Kristen Dean, Notary Public
(name and title of the officer)
personally appeared David Sanson
who proved to me on the basis of satisfactory evidence to be the person_ks�Whose name(ei5Gare-
subscribed to the within instrument and acknowledged to me that he /�y executed the same in
hisjbeFM%ir authorized capacity ,(ias , nd that by hialboOtheir signaturg4-on the instrument the person ,
or the entity upon behalf of which the persopgacted, 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.
WITNESS my ha and Icial seal KRISTEN DEAN
Comm.# 1797685 ►n
ui NOTARY PUBLIC -CAUFORMA N
CONTRA COSTA COUNTY
fir Comm. ExP. MAY 9, 2012 "
(Notary Seal)
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Number of Pages
Document Date:
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❑ Individual(s)
❑ Corporate Officer
❑ Partner
❑ Attorney -in -Fact
❑ Trustee(s)
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Additional information
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California /��`
County of s Yl� UCLC��
On )02- )GgIc: CcI)
Date
personally appeared
INGA ALONZO
Commission # 1931989
i , =a Notary Public - California i
Z Santa Clara County
M Comm. Expires Apr 15, 2015
Place Notary Seal Above
who proved to me on the basis of satisfactory evidence to
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instrument the person *, or the entity upon behalf of
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I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
Signature
Signature of N ublic
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Commission #t 1931989
Z Notary Public - California i
Santa Clara County
My Comm. Expires Apr 15, 2015
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within instrument and acknowledged to me that
(�9shefthey executed the same in of heir authorized
capacity(i*, and that by(ghepoeif signatureVon the
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I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is
true and correct.
WITNESS my and and offi ial seal.
Signature
Signature of Notary is
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