Deferred Improvement Agreement - Bay Elite Homes - No. 2015-01RECORDING REQUESTED BY
City of Gilroy
WHEN RECORDED, MAIL TO:
Shawna Freels
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
I niiiiiui I
REGINA ALCOMENDRAS
SANTA CLARA COUNTY RECORDER
Recorded at the request of
City
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
Deferred Improvement Agreement No. 2015 -01
395 East Eighth Street, Gilroy, CA
APN: 841 -11 -077
By and between
The City of Gilroy, California
and
Bay Elite Homes, Inc.
Pages 9
Fees.... 49.00
Taxes...
Copies..
AMT PAID 49.00
RDE q 024
6/28/2016
8 :02 AM
DEFERRED IMPROVEMENT AGREEMENT
AGREEMENT BY OWNER OR ffiS SUCCESSORS IN INTEREST TO
CONSTRUCT LAND DEVELOPMENT IMPROVEMENTS No. 2015 -02
Project Identification: 7201 Chestnut Street, Gilroy, CA; APN: 841 -11 -078
This agreement ( "Agreement ") is entered into by the City of Gilroy, California, (the "City "), and
Hubert Yu, CEO of Bay Elite Homes, Inc. (the "Owner") as of the date of City's execution
hereof (the "Effective Date ").
Recitals
Owner owns property located at 7201 Chestnut Street, Gilroy, CA, Assessor's parcel number
841 -11 -078, (the "Property'). Said Property is further depicted in Exhibit A, attached hereto.
Owner is constructing a new 1,315 square foot single family residence and remodeling an
existing 404 square foot home to an accessory dwelling unit (the "Project ").
Owner wishes to defer undergrounding of overhead utilities that are along the East Eighth Street
frontage of the Property (the "Improvements "), and City agrees to deferral of such
Improvements provided Owner agrees to construct the Improvements as herein provided.
NOW, THEREFORE, IT IS AGREED:
I. AGREEMENT RUNS WITH LAND AND IS BINDING ON SUCCESSORS IN
INTEREST
This agreement is an instrument affecting the title or possession of the Property and shall be
deemed to run with the land. All the terms, covenants and conditions herein imposed shall be
binding upon and inure to the benefit of the Owner and Owner's successors in interest to
Ownership of the Property. Upon any division of the Property, the terms of this agreement shall
apply separately to each parcel subdivided from the Property, and the Owner of each such parcel
shall succeed to the obligations imposed on Owner by this agreement.
II. UTILITIES IMPROVEMENTS
A. City and Owner agree that Owner may defer construction of the Improvements
(and/or payment of Owner's cost thereof) until the earlier of the following:
a. The date that the Owner(s) of real property adjacent to the Property
( "Adjacent Lot ") commences, or permits commencement of, construction
upon said Adjacent Lot, pursuant to legally approved plans that require the
undergrounding of overhead utilities thereon ( "Adjacent Lot
Undergrounding"). Prior to the commencement of the Adjacent Lot
Undergrounding, Owner shall plan and coordinate the Improvements with
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the Owner(s) of said Adjacent Lot, so that the Improvements are
constructed at the same time as the Adjacent Lot Undergrounding.
b. Twenty (20) years after the Effective Date of this Agreement; or
C. When the City Engineer determines, in his/her reasonable discretion, that
the reasons for the deferment of the Improvements no longer exist.
B. If the Property is ever subdivided, the responsibility to construct the
Improvements shall be joint and several amongst the owners of the subdivided
parcel(s). Failure of the owner of any of the parcels to pay for such
Improvements shall not excuse the Owner or owners of any of the other parcels
from completing such Improvements.
C. Upon submission of any plans for new development of the Property, the Owner
shall inform the City Engineer of the existence of this. Deferred Development
Agreement and provide City Engineer with a copy of the same, if so requested.
When the City Engineer determines that the Owner should commence
construction, or (if applicable) pay its share of the cost of the Improvements
because of the occurrence of any of the conditions set forth in Article II.A, the
City Engineer shall notify Owner in writing to commence installation and
construction of the Improvements and/or notify the Owner the amount of cost that
will be due for the Improvements. The notice shall be mailed to the current owner
or owners of the land, as shown on the latest adopted county assessment roll. The
notice shall describe the work to be done by Owner, the time within which the
work shall commence and the time within which the work shall be completed. All
or any portion of said Improvements may be required by City at a specified time.
D. If the Property has been subdivided, the owner of each such parcel shall
participate on a pro rata basis (based on the percentage of the square footage of
Property included within the parcel) in the cost of the improvements to be
installed. If any owner is obligated to pay a pro rata share of a cost of a facility
provided by others, the notice shall include the percentage to be paid and the time
when payment must be made. Failure of City Engineer to provide Owners with
the Notice set forth herein shall in no way excuse Owners' obligation to complete
the Improvements required in this Agreement. Owners shall be deemed notified
upon mailing of such notice to the address kept by County Assessor for mailing of
tax statements for the Property, unless the Owners hereof specifically provides
City with written notification of a different address. For purposes of this
Agreement, the term "City Engineer" shall refer to the City Engineer or, in the
event that the position of City Engineer is ever abolished, renamed or the duties
thereof are changed, to the City official whose duties include the right to review
and approve development proposals related to undergrounding public utilities,
which duties are currently held by the City Engineer.
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III. PERFORMANCE OF THE WORK
If Owner is the party actually responsible for construction of the Improvements, Owner shall
acquire all permits necessary to construct the improvements on the date such construction
commences. All fees for such permits shall be those required as of the date of application for
such permits. Owner shall cause plans and specifications for the improvements to be prepared by
competent persons legally qualified to do the work and to submit said improvement plans and
specifications for approval prior to commencement of the work described in the notice and to
pay City inspection fees. Owner shall construct the Improvements in accordance with City
standards (as well as the standards of the appropriate utility or utilities (collectively the
"Utility")) in effect at the time improvement plans are submitted for approval. Owner agrees to
commence and complete the work within the time specified in the notice given by the City
Engineer and to notify the City at least forty-eight (48) hours prior to start of work. (If no notice
is given by the City Engineer, Owner shall contact the City Engineer to work out an appropriate
time frame for completion of the Improvements). In the event Owner fails to construct the
Improvements, City may, at its option, do the work and collect all costs from Owner. Permission
to enter onto the property of Owner is granted to City or its contractor as may be necessary to
construct such improvements.
During construction, Owner agrees to provide necessary temporary drainage facilities, access
roads or other required improvements, to assume responsibility for the proper functioning
thereof, to submit plans to the appropriate City agency and/or Utility for review, if required, and
to maintain said improvements and facilities in a manner which will preclude any hazard to life
or health or damage to adjoining property.
IV. JOINT COOPERATIVE PLAN
Owner agrees to cooperate upon notice by City with other property Owners, the City and other
public agencies to provide the Improvements set forth herein under a joint cooperative plan
including the formation of a local improvement district, if this method is feasible to secure the
installation and construction of the improvements.
V. REVIEW OF REQUIREMENTS
If Owner disagrees with the requirements set forth in any notice to commence installation of
improvements they shall, within thirty (30) days of the date the notice was mailed, request a
review of the requirements by the City Council. The decision of the Council shall be binding
upon both City and Owner.
VI. MAINTENANCE OF IMPROVEMENTS
Upon construction and completion of the improvements specified in Section II in accordance
with City standards and requirements (as well as standards and requirements of the Utility)
Owner shall offer (at no cost) to dedicate such improvements to the Utility. If the Utility refuses
to accept such offer after Owner's compliance with all City and Utility requirements, Owner
shall offer to dedicate same to City, however, City shall be under no obligation to accept such
offer.
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VII. BONDS
Prior to approval of improvement plans by the City, the City Administrator or City Engineer, in
his or her discretion, may require Owner to execute and deliver to the City a faithful performance
bond and a labor and materials bond in an amount and form acceptable to City to be released by
the City Council in whole or in part upon completion of the work required and payment of all
persons furnishing labor and materials in the performance of the work.
VIII. INSURANCE
Owner shall maintain or shall require any contractor engaged to perform the work to maintain, at
all times during the performance of the work called for herein, a separate policy of insurance in a
form and amount acceptable to City.
IX. INDEMNITY
The Owner shall assume the defense and indemnify and save harmless the City, its officers,
agents and employees, from:
(1) every expense, liability or payment by reason of injury "including death" to
persons or damage to property suffered' through any act or omission, including
passive negligence or act of negligence, or both, of the Owner, his/her employees,
agents, contractors, sub - contractors, or any one directly or indirectly employed by
either of them, or arising in any way from the work called for by this agreement,
on any part of the premises, including those matters arising out of the deferment
of development of the overhead utility lines or the adequacy, safety, use or non-
use of temporary utility lines, and the performance or non - performance of the
work.
(2) any and all claims, damages, losses, judgments, liabilities, expenses and other
costs, including, without limitation, litigation costs and attorney's fees (incurred
by City and/or other parties involved in related legal proceedings), arising out of,
resulting from, or in any way connected to the following conditions:
(a) any violation or claim of violation of any law, rule or regulation
(including, but not limited to, laws, rules or regulations relating to
payment of prevailing wage) applicable to any portion or aspect of the
Project. Owner's obligation to defend, indemnify and hold the City of
Gilroy harmless specifically includes, but is not limited to, any suit or
administrative action against the City of Gilroy which claims a violation
of any prevailing wage law, rule or regulation applicable to any portion or
aspect of the Project for which the permit has been issued;
(b) all of City's costs, fees, and damages incurred in enforcing the
indemnification provisions of this Agreement.
The Owner's obligations to defend, indemnify and hold the City harmless as set forth herein,
shall include, but shall not be limited to, staff time, copying costs, court costs, the costs of any
CL'
judgments or awards against the City for damages, losses, litigation costs, and/or attorney fees
arising out of any violation or claim of violation of any law, rule or regulation applicable to any
portion or aspect of the Project and costs of any settlement representing damages, litigation costs
and attorney's fees to be paid to other parties arising out of any such proceeding.
The provisions of this Article IX shall not be deemed to require the Owner to Indemnify the City
against the liability for damage to the extent arising from the sole negligence or willful
misconduct of the City of its agents, servants or independent contractors who are directly
responsible to the City.
X. INDEPENDENT DEVELOPMENT
The parties specifically acknowledge that the Project is a private development, that no party is
acting as the agent of the others in any respect hereunder, and that each party is an independent
contracting entity with respect to the terms, covenants and conditions contained in this
Agreement. None of the terms or provisions of this Agreement shall be deemed to create a
partnership between or among the parties, or the affairs of City, or otherwise, or cause them to be
considered joint venturers or members of any joint enterprise.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date set forth
below.
APPROVED AS TO FORM:
kQ-
City Attorney
City Clerk
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CITY OF GILROY
Gabriel A. Goor -R Itz
City Administrator
Date:��
OWNER
ert*u, CEO
Bay Elite Homes, Inc.
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189
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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of Calif is )
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On 2-DI before me, I 7z
Date Here Ins rt Name and Title of the Officer
personally appeared �� Ib ZCL��z
Name(W of Signer(*
who proved to me on the basis of satisfactory evidence to be thg personV whose namec,909
subscribed to the within instrument and acknow ged to me that >e ieftfiey executed the same in
i authorized capacity(i0W, and that b i er/tMir signatur n the instrument the person„
dr-fhe entity upon behalf of which the person(fa-Cfed, executed the instrument.
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Place Notary Seal Above
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
is true and correct.
WITNESS m had and official seal.
Signature 04A
ignature of Notary Pu&c
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document:
Number of Pages:
Document Date:
Signers) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Individual ❑ Attorney in Fact
❑ Trustee ❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
Signer's Name:
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Individual ❑ Attorney in Fact
❑ Trustee ❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
CALIFORNIA ALL - PURPOSE ACKNOWLEDGEMENT
A notary public or other officer completing this certificate verifies only the identity of
the individual who signed the document to which this certificate is attached, and not
the truthfulness, accuracy, or validity of that document.
State of California }
County of Santa Clara } ss.
On 1 a1 a n11 2015, before me, PAVNEET SINGH, Notary Public, personally appeared
I VA l l
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.
WITNESS my hand and official seal. PAVNEET SINGF I';,
V COMM. #2034479
• NOTARY PUBLIC - CALIFORNIA 7
SANTA CLARA COUNTY
CO n
MM. EXPIRES AUG 20, 2017
(Notary Signature)
Notary seal
EXHIBIT A
The land referred to is situated in the County of Santa Clara, City of Gilroy, State of Califomia,
and is described as follows:
Parcel 1 as shown on that Map entitled "Parcel Map" Recorded in the Office of the Recorder on
December 19, 2013 In Book 867 of Maps at pages 38 and 39.
APN: 841 -11 -032 (Portion)
(New APN: 841 -11 -077)