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HomeMy WebLinkAboutAgenda Packet - July 25, 2011 - CC Spec AVA11117-1111111 ` j1:11tr1, a kz ►ZUS NOTICE AND CALL OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF AZUSA TO THE MEMBERS OF THE CITY COUNCIL OF THE CITY OF AZUSA: NOTICE IS HEREBY GIVEN that a Special Meeting of the City Council of the City of Azusa is hereby called to be held MONDAY, JULY 25, 2011 immediately following the Utility Board meeting, which begins at 6:30 p.m. at the Azusa Light and Water Conference Room located at 729 N.Azusa Avenue,Azusa, California. Said Special Meeting shall be for discussing, hearing and taking action on the items listed below: AGENDA A. PRELIMINARY BUSINESS • Call to Order • Roll Call B. PUBLIC COMMENT—Limited to items listed on this Special Meeting Notice. C. AGENDA ITEMS 1. SUBSTITUTION OF BONDS FOR FINAL TRACT MAP 63336-2, MAPLETON AT ROSEDALE, BY KB HOME COASTAL,INC. RECOMMENDED ACTION: (a) Approve and authorize the City Manager to execute the attached Agreement for Completion of Public Improvements for Tract 63336-2 to construct the required public improvements. (b)Accept the Faithful Performance Bond in the amount of$142,105.86,the attached Labor and Materials Bond in the amount of$142,105.86 for streets, sewers and water lines, as guaranteed by Hartford Fire Insurance Company, and a cash monument bond in the amount of$10,000. (c) Exonerate the original bonds posted by Christopher Homes as guaranteed by Arch Insurance Company, including a Faithful Performance Bond in the amount of$565,467.49, and a Labor and Materials Bond for $282,733.74, for streets, sewers and water lines. 2. AZUSA POLICE MANAGEMENT ASSOCIATION (APMA) CONTRACT EFFECTIVE AUGUST 1, 2010 THROUGH JULY 31,2015. RECOMMENDED ACTION: a. Waive further reading and adopt Resolution No. 11-C60, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE AZUSA POLICE MANAGEMENT ASSOCIATION EFFECTIVE AUGUST 1, 2010 THROUGH JULY 31,2015 b. Waive further reading and adopt Resolution No. 11-C61, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA FOR EMPLOYER PAID MEMBER CONTRIBUTIONS. 3. PROJECT NO. SRTSL-5112(011) — SAFE ROUTES TO SCHOOL PROJECT — TERMINATE AWARD OF CONTRACT TO TSR CONSTRUCTION AND INSPECTION BID AS NONRESPONSIVE, AUTHORIZE STAFF TO AWARD CONTRACT TO MARTINEZ CONCRETE, INC. AND APPROVE A BUDGET AMENDMENT IN THE AMOUNT OF $42,397.00 TO BE FUNDED FROM THE TRANSPORTATION DEVELOPMENT ACT (TDA) FUND. RECOMMENDED ACTION: Terminate the award of contract to TSR Construction and Inspection bid as nonresponsive, authorize staff to award the Safe Routes to School Project No. SRTSL-5112(011) to Martinez Concrete, Inc. and approve a budget amendment in the amount of$42,397.00 to be funded from the TDA fund. D. CLOSED SESSION 1. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff Under Negotiation: Price and Terms of Payment a. BLOCK 36 Address: APN 8611-003-921 Negotiating Parties: Lewis Retail Centers 2. CONFERENCE WITH LABOR NEGOTIATOR(Gov. Code Sec.54957.6) Agency Negotiators: City Manager Delach Organization: Executive—Negotiation of Executive Benefits 3. PUBLIC EMPLOYEE APPOINTMENT-Pursuant to Gov. Code section 54957 Title: City Manager 4. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION(Gov. Code 54956.9(a)) People of the State of California through Relators George Brokate and Excalibur Holdings, LLC vs. DOUG TESSITOR, SAM PEDROZA, ED REYES, KEITH HANKS, JOHN FASANA, WILLIAM BOGAARD, MICHAEL CACCIOTTI, and MARY ANN LUTZ et al. E. ADJOURNMENT 1. Adjourn In compliance with Government Code Section 54957.5, agenda materials are available for inspection by members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard, Azusa City Library - 729 N. Dalton Avenue, and Azusa Police Department Lobby - 725 N Alameda, Azusa, California. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city meeting,please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the meeting when special services are needed will assist staff in assuring that reasonable arrangements can be made to provide access to the meeting. 2 A CONSENT CALENDAR TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: TITO HAES, PUBLIC WORKS DIRECTOR/ASSISTANT CITY MANAGER VIA: F.M. DELACH, CITY MANAGER DATE: JULY 25, 2011 SUBJECT: SUBSTITUTION OF BONDS FOR FINAL TRACT MAP 63336-2, MAPLETON AT ROSEDALE, BY KB HOME COASTAL, INC. RECOMMENDATION It is recommended that: The City Council approves and authorizes the City Manager to execute the attached Agreement for Completion of Public Improvements for Tract 63336-2 to construct the required public improvements. 2. The City Council accepts the attached Faithful Performance Bond in the amount of $ I42,105.86, the attached Labor and Materials Bond in the amount of $142,105.86 for streets, sewers and water lines, as guaranteed by Hartford Fire Insurance Company, and a cash monument bond in the amount of $10,000. 3. The City Council hereby exonerates the original bonds posted by Christopher Homes as guaranteed by Arch Insurance Company, including a Faithful Performance Bond in the amount of $565,467.491, and a Labor and Materials Bond for $282,733.74, for streets, sewers and water lines. BACKGROUND The City Council originally approved the Final Map for Tract 63335-2, known as Mapleton, on October 1, 2007, submitted by Christopher Homes. At the same time, the City Council also approved an .Agreement for Public Improvements and related performance and labor and materials bonds by Arch Insurance Company on behalf of Christopher Homes in the amounts as follows: 1. For streets, sewers and water lines, a Faithful Performance Bond in the amount of $565,467.49, and a Labor and Materials Bond in the amount of $282,733.74, 2. For the construction of a portion of the Sierra Madre Trail, a Faithful Performance and of $70,796 and Labor and Materials Bond for $35,398. �I After default by Christopher Homes during the recession, JP Morgan Chase Bank foreclosed on the tract, which has now been purchased by KB Home Coastal Inc. The new owner desires to substitute the old bonds with new bonds to guarantee the proposed public improvements. Some of the tract improvements have been completed by Christopher Homes; therefore the current bond amount reflects the remaining work to be done. In addition, while most of the work of the adjacent portion of the Sierra Madre Trail has been completed, the City has not yet accepted those improvements. Until the City accepts the trail improvements, the bonds posted by Christopher Homes for the Sierra Madre Trail will remain in place. The remaining public improvements are expected to be completed in the near future, and will be offered to the City for acceptance as they are completed. Attached is a new Agreement for Completion of Public Improvements for Tract No. 63336-2 to construct required public improvements, along with a Faithful Performance Bond in the amount of $142,105.86, and a Labor and Materials Bond in the amount of $142,105.86, as guaranteed by Hartford Fire Insurance Company. One of the requirements negotiated between the City and KB Home Coastal Inc., is the completion of the easterly landscape slope of the Arroyo, immediately west of the subject tract. Because this is a master developer (Rosedale Land Partners, "RLP") obligation, which is scheduled to be constructed farther into the future in 2014, KB Home will use best efforts to construct the improvements with RLP's consent, and post a bond to ensure its completion. This bond will be presented for Council approval at the next Council meeting. FISCAL IMPACT The fiscal impact of the Rosedale project was analyzed in a Fiscal Impact Study approved as part of the original Rosedale entitlements in 2003. Attachments: Agreement for Completion of Public Improvements Performance Bond Labor and Materials Bond A E49N83 This page is part of your document - DO NOT DISCARD 20111157851 . } I III II 1111111 II IIIII Illll IIII 11 II I IIIII IIIII IIIII IIIII IIII Illi Recorded/Filed in Official Records Recorder's Office, Los Angeles County, x _ x California Wot�K�� 08/26/11 AT 10:41AM FEES: TAXES OTHER PAID: LEADSHEET 1111111111111111111111111111111111111111111111111111111111111111111111 201108260760033 00004569284 n��wnuiimUum 003466753 SEQ: 01 DAR Mail (Hard Copy) IRNINIYIM�AIIVNMWImWAIIImA� 111110�BIIII�VNI�VIVII�INOIA�I911�V� 0.00 THIS FORM IS NOT TO BE DUPLICATED Pa841 0.00 0.00 0.00 RECORDING REQUESTED BY WHEN RECORDED MAIL TO NAME Vera Mendoza City Clerk City of Azusa ADDRESS 213 E. Foothill Blvd. CITY, STATE Azusa, CA ZIP CODE 91702 *20111157851* SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE TITLES) Agreement for Completion of Public Improvements, Parcel/Tract No. 63336-2, between City of Azusa and KB Home Coastal Inc.; and Performance Bond and Labor and Material Bond, for said Agreement RECORDING REQUESTED BY: WHEN RECORDED RETURN TO: CITY OF AZUSA 213 E. Foothill Blvd. Azusa,„ CA 91702 ATTN: City C Prk SPACE ABOVE THIS LINE FOR RECORDER'S USE Exeir t Froin rdin F e �emment e Section 6103 r F USA. CALIFORNI y: City Clerk AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS PARCEL/TRACT NO. 63336- 2 between CITY OF AZUSA a California municipal corporation and KB HOME COASTAL INC. a California corporation ORANGEWMARTINEZ03457.1 j" S AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS PARCEL/TRACT MAP NO. 63336-02 AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS TRACT MAP NO. 63336-02 I. PARTIES AND DATE. This Agreement for the Completion of Public Improvements ("Agreement") is entered into as of this 25thday of July , 2011 by and between the City of Azusa, a California municipal corporation ("City") and KB HOME Coastal Inc., a California corporation with its principal office located at 36310 Inland Valley Drive, Wildomar, California 92595 ("Developer"). City and Developer are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as the "Parties." II. RECITALS. A. Developer has heretofore submitted to City an application for approval of a tract map for real property located within City, a legal description of which is attached hereto as Exhibit "A" ("Property"), and which is identified in City records Tract Map No. 63336-2. B. Developer's application for a tentative tract map for Tentative Tract No. 54057 was conditionally approved by the City Council on February 3, 2003. C. Developer has not completed all of the work or made all of the public improvements required by Chapter 66, Article V of the Azusa Municipal Code, the Subdivision Map Act (Government Code sections 66410 et seq.), the conditions of approval for Tract No. 63336-2 or other ordinances, resolutions, or policies of City requiring construction of improvements in conjunction with the subdivision of land. D. Pursuant to Section 66-4650) and the applicable provisions of the Map Act, Developer and City enter into this Agreement for the timely construction and completion of the public improvements and the furnishing of the security therefor, acceptable to the City Engineer and City Attorney, for Tract No. 63336-2. E. Developer's execution of this Agreement and the provision of the security are made in consideration of City's approval of the final map for Tract No. 63336-2. III. TERMS. 1.0 Effectiveness. This Agreement shall not be effective unless and until all three of the following conditions are satisfied: (a) Developer provides City with security of the type and in the amounts required by this Agreement; (b) Developer executes and records this Agreement in the Recorder's Office of the County of Los Angeles; (c) the City Council of the City ("City Council") approves the final map for Tract No.63336-2 and (d) Developer records the final map for Tract No. 63336-2 in the Recorder's Office of the County of Los Angeles. If the above ORANGEWMARTINEL33457. 12 described c6nditions are not satisfied, this Agreement shall automatically terminate without need. of further action by either City or Developer, and Developer may not thereafter record the final map for Parcel/Tract No.63336-2. 2.0 Public Improvements. Developer shall construct or have constructed at its own cost, expense, and liability all improvements required by City as part of the approval of Parcel/Tract No.63336-2, including, but not limited to, all grading, roads, paving, curbs and gutters, pathways, storm drains, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities as shown in detail on the plans, profiles, and specifications which have been prepared by or on behalf of Developer for Parcel/Tract Map No. 63336-2 ("Public Improvements"). The Public Improvements are more specifically described in Exhibit "B," which is attached hereto and incorporated herein by this reference. Construction of the Public Improvements shall include any transitions and/or other incidental work deemed necessary for drainage or public safety. The Developer shall be responsible for the replacement, relocation, or removal of any component of any irrigation water system in conflict with the construction or installation of the Public Improvements. Such replacement, relocation, or removal shall be performed to the complete satisfaction of the City Engineer and the owner of such water system. Developer further promises and agrees to provide all equipment, tools, materials, labor, tests, design work, and engineering services necessary or required by City to fully and adequately complete the Public Improvements. 2.1 Prior Partial Construction of Public Improvements. Where construction of any Public Improvements has been partially completed prior to this Agreement, Developer agrees to complete such Public Improvements or assure their completion in accordance with this Agreement. 2.2 Permits,• Notices; Utility -Statements. Prior to commencing any work, Developer shall, at its sole cost, expense, and liability, obtain all necessary permits and licenses and give all necessary and incidental notices required for the lawful construction of the Public Improvements and performance of Developer's obligations under this Agreement. Developer shall conduct the work in full compliance with the regulations, rules, and other requirements contained in any permit or license issued to Developer. Prior to commencing any work, Developer shall file a written statement with the City Clerk and the City Engineer, signed by Developer and each utility which will provide utility service to the Property, attesting that Developer has made all deposits legally required by the utility for the extension and provision of utility service to the Property. 2.3 Pre -approval of flans and Specifications. Developer is prohibited from commencing work on any Public Improvement until all plans and specifications for such Public Improvement have been submitted to and approved by the City Engineer, or his or her designee. Approval by the City Engineer shall not relieve Developer from ensuring that all Public Improvements conform with all other requirements and standards set forth in this Agreement. 2.4 Quality of Work: Compliance With Laws and Codes. The construction plans and specifications for the Public Improvements shall be prepared in accordance with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other ORANCUMMARTINEZ03457. 13 requirements. The Public Improvements shall be completed in accordance with all approved maps, plans, specifications, standard drawings, and special amendments thereto on file with City, as well as all applicable federal, state, and local laws, ordinances, regulations, codes, standards, and other requirements applicable at the time work is actually commenced. 2.5 Standard of Performance. Developer and its contractors, if any, shall perform all work required to construct the Public Improvements under this Agreement in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Developer represents and maintains that it or its contractors shall be skilled in the professional calling necessary to perform the work. Developer warrants that all of its employees and contractors shall have sufficient skill and experience to perform the work assigned to them, and that they shall have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the work, and that such licenses, permits, qualifications and approvals shall be maintained throughout the term of this Agreement. 2.6 Alterations to Improvements. The Public Improvements in Exhibit `B" are understood to be only a general designation of the work and improvements to be done, and not a binding description thereof. All work shall be done and improvements made and completed as shown on approved plans and specifications, and any subsequent alterations thereto. If during the course of construction and installation of the Public Improvements it is determined that the public interest requires alterations in the Public Improvements, Developer shall undertake such design and construction changes as may be reasonably required by City. Any and all alterations in the plans and specifications and the Public Improvements to be completed may be accomplished without giving prior notice thereof to Developer's surety for this Agreement. 3.0 Maintenance of Public Improvements and Landsca in . City shall not be responsible or liable for the maintenance or care of the Public Improvements until City approves and accepts them. City shall exercise no control over the Public Improvements until accepted. Any use by any person of the Public Improvements, or any portion thereof, shall be at the sole and exclusive risk of the Developer at all times prior to City's acceptance of the Public Improvements. Developer shall maintain all the Public Improvements in a state of good repair until they are completed by Developer and approved and accepted by City, and until the security for the performance of this Agreement is released. Maintenance shall include, but shall not be limited to, repair of pavement, curbs, gutters, sidewalks, signals, parkways, water mains, and sewers; maintaining all landscaping in a vigorous and thriving condition reasonably acceptable to City; removal of debris from sewers and storm drains; and sweeping, repairing, and maintaining in good and safe condition all streets and street improvements. It shall be Developer's responsibility to initiate all maintenance work, but if it shall fail to do so, it shall promptly perform such maintenance work when notified to do so by City. If Developer fails to properly prosecute its maintenance obligation under this section, City may do all work necessary for such maintenance and the cost thereof shall be the responsibility of Developer and its surety under this Agreement. City shall not be responsible or liable for any damages or injury of any nature in any way related to or caused by the Public Improvements or their condition prior to acceptance. ORANGEWMARTINEZ03457. 14 4.0 ' Construction Schedule. Unless extended pursuant to this Section 4.1 of this Agreement, Developer shall fully and adequately complete or have completed the Public Improvements within twelve (12) months following approval of the final map for Tract No.63336-2. 4.1 Extensions. City may, in its sole and absolute discretion, provide Developer with additional time within which to complete the Public Improvements. It is understood that by providing the security required under Section 13.0 et seq. of this Agreement, Developer and its surety consent in advance to any extension of time as may be given by City to Developer, and waives any and all right to notice of such extension(s). Developer's acceptance of an extension of time granted by City shall constitute a waiver by Developer and its surety of all defense of laches, estoppel, statutes of limitations, and other limitations of action in any action or proceeding filed by City following the date on which the Public Improvements were to have been completed hereunder. In addition, as consideration for granting such extension to Developer, City reserves the right to review the provisions of this Agreement, including, but not limited to, the construction standards, the cost estimates established by City, and the sufficiency of the improvement security provided by Developer, and to require adjustments thereto when warranted according to City's reasonable discretion. 4.2 Accrual of Limitations Period. Any limitations period provided by law related to breach of this Agreement or the terms thereof shall not accrue until Developer has provided the City Engineer with written notice of Developer's intent to abandon or otherwise not complete required or agreed upon Public Improvements. 5.0 Gradin. Developer agrees that any and all grading done or to be done in conjunction with construction of the Public Improvements or development of Parcel/Tract No.63336-2 shall conform to all federal, state, and local laws, ordinances, regulations, and other requirements, including City's grading regulations. In order to prevent damage to the Public Improvements by improper drainage or other hazards, the grading shall be completed in accordance with the time schedule for completion of the Public Improvements established by this Agreement, and prior to City's approval and acceptance of the Public Improvements and release of the Security as set forth in Section 13.0 et seq. of this Agreement. 6.0 Utilities. Developer shall provide utility services, including water, power, gas, and telephone service to serve each parcel, lot, or unit of land within Parcel/Tract No. 63336-2 in accordance with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the regulations, schedules and fees of the utilities or agencies providing such services. Except for commercial or industrial properties, Developer shall also provide cable television facilities to serve each parcel, lot, or unit of land in accordance with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the requirements of the cable company possessing a valid franchise with City to provide such service within City's jurisdictional limits. All utilities shall be installed underground. 7.0 Fees and GhgEges. Developer shall, at its sole cost, expense, and liability, pay all fees, charges, and taxes arising out of construction of the Public Improvements, including, but not limited to, all plan check, design review, engineering, inspection, and other service fees, and ORANGE\MMARTINEZ\33457. ] 5 any impact or connection fees established by City ordinance, resolution, regulation, or policy, or as established by City relative to Parcel/Tract No.63336-2. 8.0 City Inspection of Public Improvements. Developer shall, at its sole cost, expense, and liability, and at all times during construction of the Public Improvements, maintain reasonable and safe facilities and provide safe access for inspection by City of the Public Improvements and areas where construction of the Public Improvements is occurring or will occur. 9.0 Default,• Notice; Remedies. 9.1 Notice. If Developer neglects, refuses, or fails to fulfill or timely complete any obligation, term, or condition of this Agreement, or if City determines there is a violation of any federal, state, or local law, ordinance, regulation, code, standard, or other requirement, City may at any time thereafter declare Developer to be in default or violation of this Agreement and make written demand upon Developer or its surety, or both, to immediately remedy the default or violation ("Notice"). Developer shall substantially commence the work required to remedy the default or violation within ten (10) days of the Notice. If the default or violation constitutes an immediate threat to the public health, safety, or welfare, City may provide the Notice verbally, and Developer shall substantially commence the required work within twenty-four (24) hours thereof. Immediately upon City's issuance of the Notice, Developer and its surety shall be liable to City for all costs of construction and installation of the Public Improvements and all other administrative costs expenses as provided for in Section 10.0 of this Agreement. 9.2 Failure to Remedy; City Action. If the work required to remedy the noticed default or violation is not diligently prosecuted to a completion acceptable to City within the time frame contained in the Notice, City may complete all remaining work, arrange for the completion of all remaining work, and/or conduct such remedial activity as in its sole and absolute discretion it believes is required to remedy the default or violation. All such work or remedial activity shall be at the sole and absolute cost, expense, and liability of Developer and its surety, without the necessity of giving any further notice to Developer or surety. City's right to take such actions shall in no way be limited by the fact that Developer or its surety may have constructed any, or none of the required or agreed upon Public Improvements at the time of City's demand for performance. In the event City elects to complete or arrange for completion of the remaining work and improvements, City may require all work by Developer or its surety to cease in order to allow adequate coordination by City. Notwithstanding the foregoing, if conditions precedent for reversion to acreage can be met and if the interests of City will not be prejudiced thereby, City may also process a reversion to acreage and thereafter recover from Developer or its surety the full cost and expense incurred. 9.3 Other Remedies. No action by City pursuant to Section 9.0 et sem. of this Agreement shall prohibit City from exercising any other right or pursuing any other legal or equitable remedy available under this Agreement or any federal, state, or local law. City may exercise it rights and remedies independently or cumulatively, and City may pursue inconsistent remedies. City may institute an action for damages, injunctive relief, or specific performance. ORANGE\MMARTINEZ\33457. 16 10.0 , Administrative Costs. If Developer fails to construct and install all or any part of the Public Improvements within the time required by this Agreement, or if Developer fails to comply with any other obligation contained herein, Developer and its surety shall be jointly and severally liable to City for all administrative expenses, fees, and costs, including reasonable attorney's fees and costs, incurred in obtaining compliance with this Agreement or in processing any legal action or for any other remedies permitted by law. 11.0 Acceptance of Improvement% As -Built or Record Drawings. If the Public Improvements are properly completed by Developer and approved by the City Engineer, and if they comply with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other requirements, the City Council shall be authorized to accept the Public Improvements. The City Council may, in its sole and absolute discretion, accept fully completed portions of the Public Improvements prior to such time as all of the Public Improvements are complete, which shall not release or modify Developer's obligation to complete the remainder of the Public Improvements within the time required by this Agreement. Upon the total or partial acceptance of the Public Improvements by City, Developer shall file with the Recorder's Office of the County of Los Angeles a notice of completion for the accepted Public Improvements in accordance with California Civil Code section 3093, at which time the accepted Public Improvements shall become the sole and exclusive property of City without payment therefor. If Tract No. 63336-2 was approved and recorded as -a single phase map, City shall not accept any one or more of the improvements until all of the Public Improvements are completed by Developer and approved by City. Issuance by City of occupancy permits for any buildings or structures located on the Property shall not be construed in any manner to constitute City's acceptance or approval of any Public Improvements. Notwithstanding the foregoing, City may not accept any Public Improvements unless and until Developer provides one (1) set of "as -built" or record drawings or plans to the City Engineer for all such Public Improvements. The drawings shall be certified and shall reflect the condition of the Public Improvements as constructed, with all changes incorporated therein. 12.0 Warranty and Guarantee. Developer hereby warrants and guarantees all Public Improvements against any defective work or labor done, or defective materials furnished in the performance of this Agreement, including the maintenance of all landscaping within the Property in a vigorous and thriving condition reasonably acceptable to City, for a period of one (1) year following completion of the work and acceptance by City ("Warranty"). During the Warranty, Developer shall repair, replace, or reconstruct any defective or otherwise unsatisfactory portion of the Public Improvements, in accordance with the current ordinances, resolutions, regulations, codes, standards, or other requirements of City, and to the approval of the City Engineer. All repairs, replacements, or reconstruction during the Warranty shall be at the sole cost, expense, and liability of Developer and its surety. As to any Public Improvements which have been repaired, replaced, or reconstructed during the Warranty, Developer and its surety hereby agree to extend the Warranty for an additional one (1) year period following City's acceptance of the repaired, replaced, or reconstructed Public Improvements. Nothing herein shall relieve Developer from any other liability it may have under federal, state, or local law to repair, replace, or reconstruct any Public Improvement following expiration of the Warranty or any extension thereof. Developer's warranty obligation under this section shall survive the expiration or termination of this Agreement. ORANGE\MXM\21759. 17 13.0 Security; Surety Bonds. Prior to execution of this Agreement, Developer shall provide City with surety bonds in the amounts and under the terms set forth below ("Security"). The amount of the Security shall be based on the City Engineer's approximation of the actual cost to construct the Public Improvements, including the replacement cost for all landscaping ("Estimated Costs"). If City determines, in its sole and absolute discretion, that the Estimated Costs have changed, Developer shall adjust the Security in the amount requested by City. Developer's compliance with this provision (Section 13.0 et seq.) shall in no way limit or modify Developer's indemnification obligation provided in Section 16.0 of this Agreement. 13.1 Performance Band. To guarantee the faithful performance of the Public Improvements and all the provisions of this Agreement, to protect City if Developer is in default as set forth in Section 8.0 et sec . of this Agreement, and to secure Developer's one-year guarantee and warranty of the Public Improvements, including the maintenance of all landscaping in a vigorous and thriving condition, Developer shall provide City a faithful performance bond in the amount of One Hundred Forty Two Thousand, One Hundred Five Dollars and eighty six cents ($142,105.86), which sum shall be not less than one hundred percent (100%) of the Estimated Costs. The City Council may, in its sole and absolute discretion and upon recommendation of the City Engineer, partially release a portion or portions of the security provided under this section as the Public Improvements are accepted by City, provided that Developer is not in default on any provision of this Agreement or condition of approval for Parcel/Tract No. 63336-2, and the total remaining security is not less than twenty-five percent (25%) of the Estimated Costs. All security provided under this section shall be released at the end of the Warranty period, or any extension thereof as provided in Section 12 of this Agreement, provided that Developer is not in default on any provision of this Agreement or condition of approval for Parcel/Tract No. 63336-2. 13.2 Labor & Material Bond. To secure payment to the contractors, subcontractors, laborers, material men, and other persons furnishing labor, materials, or equipment for performance of the Public Improvements and this Agreement, Developer shall provide City a labor and materials bond in the amount of One Hundred Forty Two Thousand, One Hundred Five Dollars and eighty six cents ($142,105.86), which sum shall not be less than one hundred percent (100%) of the Estimated Costs. The security provided under this section may be released by written authorization of the City Engineer after six (6) months from the date City accepts the final Public Improvements. The amount of such security shall be reduced by the total of all stop notice or mechanic's lien claims of which City is aware, plus an amount equal to twenty percent (20%) of such claims for reimbursement of City's anticipated administrative and legal expenses arising out of such claims. 13.3 Additional Requirements. The surety for any surety bonds provided as Security shall have a current A.M. Best's rating of no less than A:VIII, shall be licensed to do business in California, and shall be satisfactory to City. As part of the obligation secured by the Security and in addition to the face amount of the Security, the Developer or its surety shall ORANGE\MXM\21759. 18 secure the costs and reasonable expenses and fees, including reasonable attorney's fees and costs, incurred by City in enforcing the obligations of this Agreement. The Developer and its surety stipulate and agree that no change, extension of time, alteration, or addition to the terms of this Agreement, the Public Improvements, or the plans and specifications for the Public Improvements shall in any way affect its obligation on the Security. 13.4 Evidence and Incorporation of Security. Evidence of the Security shall be provided on the forms set forth in Exhibit "C," unless other forms are deemed acceptable by the City Engineer and the City Attorney, and when such forms are completed to the satisfaction of City, the forms and evidence of the Security shall be attached hereto as Exhibit "C" and incorporated herein by this reference. 14.0 Monument_ Secy. Prior to City's execution of this Agreement, to guarantee payment to the engineer or surveyor for the setting of all subdivision boundaries, lot corners, and street centerline monuments for Parcel/Tract No. 63336-2 in compliance with the applicable provisions of City's Municipal and/or Development Code ("Subdivision Monuments"), Developer shall deposit cash with City in the amount of Ten Thousand Dollars ($10,000.00), which sum shall not be less than one hundred percent (100%) of the costs of setting the Subdivision Monuments as determined by the City Engineer. Said cash deposit may be released by written authorization of the City Engineer after all required Subdivision Monuments are accepted by the City Engineer, City has received written acknowledgment of payment in full from the engineer or surveyor who set the Subdivision Monuments, and provided Developer is not in default of any provision of this Agreement or condition of approval for Parcel/Tract No. 63336-2. 15.0 Lien. To secure the timely performance of Developer's obligations under this Agreement, including those obligations for which security has been provided pursuant to Sections 13 et seq. and 14 of this Agreement, Developer hereby creates in favor of City a lien against all portions of the Property not dedicated to City or some other governmental agency for a public purpose. As to Developer's default on those obligations for which security has been provided pursuant to Sections 13 et seg. and 14 of this Agreement, City shall first attempt to collect against such security prior to exercising its rights as a contract lienholder under this section. 16.0 Indemnification. Developer shall defend, indemnify, and hold harmless City, its elected officials, officers, employees, and agents from any and all actual or alleged claims, demands, causes of action, liability, loss, damage, or injury, to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state, or local governmental body or agency, arising out of or incident to any acts, omissions, negligence, or willful misconduct of Developer, its personnel, employees, agents, or contractors in connection with or arising out of construction or maintenance of the Public Improvements, or performance of this Agreement. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys fees, and related costs or expenses, and the reimbursement of City, its elected officials, officers, employees, and/or agents for all legal expenses and costs incurred by each of them. This indemnification excludes only such portion of any claim, demand, cause of action, liability, loss, damage, penalty, fine, or injury, to property or persons, including wrongful death, which is caused solely and exclusively by the ORANGE\MMARTINEZ\3 3457. 19 negligence or willful misconduct of Agency as determined by a court or administrative body of competent jurisdiction. Developer's obligation to indemnify shall survive the expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, officers, employees, or agents. 17.0 Insurance. 17.1 Types Amounts. Developer shall procure and maintain, and shall require its contractors to procure and maintain, during construction of any Public Improvement pursuant to this Agreement, insurance of the types and in the amounts described below ("Required Insurance"). If any of the Required Insurance contains a general aggregate limit, such insurance shall apply separately to this Agreement or be no less than two times the specified occurrence limit. 17. 1.1 General Liability. Developer and its contractors shall procure and maintain occurrence version general liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence for bodily injury, personal injury, and property damage. 17.1.2 Business Automobile Liability. Developer and its contractors shall procure and maintain business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for the ownership, operation, maintenance, use, loading, or unloading of any vehicle owned, leased, hired, or borrowed by the insured or for which the insured is responsible. 17.1.3 Workers' Compensation. Developer and its contractors shall procure and maintain workers' compensation insurance with limits as required by the Labor Code of the State of California and employers' liability insurance with limits of not less than $1,000,000 per occurrence, at all times during which insured retains employees. 17.1.4 Professional Liability. For any consultant or other professional who will engineer or design the Public Improvements, liability insurance for errors and omissions with limits not less than $1,000,000 per occurrence, shall be procured and maintained for a period of five (5) years following completion of the Public Improvements. Such insurance shall be endorsed to include contractual liability. 17.2 Deductibles. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: (a) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its elected officials, officers, employees, agents, and volunteers; or (b) Developer and its contractors shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses. 17.3 Additional Insured, Separation of Insureds. The Required Insurance shall name City, its elected officials, officers, employees, agents, and volunteers as additional insureds with respect to work performed by or on behalf of Developer or its contractors, including materials, parts, or equipment furnished in connection therewith. The Required Insurance shall ORANGE\MMARTINEZ\3 3457. 1 10 contain standard separation of insureds provisions, and shall contain no special limitations on the scope of its protection to City, its elected officials, officers, employees, agents, and volunteers. 17.4 Primary Insurance; Waiver of Subrogation. The Required Insurance shall be primary with respect to any insurance or self-insurance programs covering City, its elected officials, officers, employees, agents, and volunteers. All policies for the Required Insurance shall provide that the insurance company waives all right of recovery by way of subrogation against City in connection with any damage or harm covered by such policy. 17.5 Certificates; Verification. Developer and its contractors shall furnish City with original certificates of insurance and endorsements effecting coverage for the Required Insurance. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by City before work pursuant to this Agreement can begin. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 17.6 Term; Cancellation Nonce. Developer and its contractors shall maintain the Required Insurance for the term of this Agreement and shall replace any certificate, policy, or endorsement which will expire prior to that date. All policies shall be endorsed to provide that the Required Insurance shall not be suspended, voided, reduced, canceled, or allowed to expire except on 30 days prior written notice to City. 17.7 Insurer Rating. Unless approved in writing by City, all Required Insurance shall placed with insurers licensed to do business in the State of California and with a current A.M. Best rating of at least AXIII. 18.0 Sims and Advertising. Developer understands and agrees to City's ordinances, regulations, and requirements governing signs and advertising structures. Developer hereby agrees with and consents to the removal by City of all signs or other advertising structures erected, placed, or situated in violation of any City ordinance, regulation, or other requirement. Removal shall be at the expense of Developer and its surety. Developer and its surety shall indemnify and hold City free and harmless from any claim or demand arising out of or incident to signs, advertising structures, or their removal. 19.0 Relationship Between the Parties. The Parties hereby mutually agree that neither this Agreement, any map related to Parcel/Tract No. 63336-2, nor any other related entitlement, permit, or approval issued by City for the Property shall operate to create the relationship of partnership, joint venture, or agency between City and Developer. Developer's contractors and subcontractors are exclusively and solely under the control and dominion of Developer. Nothing herein shall be deemed to make Developer or its contractors an agent or contractor of City. 20.0 General Provisions. 20.1 Authority to Enter Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority make this Agreement and bind each respective Party. ORANG EWMARTINEZ0345 7. III 20.2 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement. 20.3 Construction; References; Captions. It being agreed the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days, or period for performance shall be deemed calendar days and not work days. All references to Developer include all personnel, employees, agents, and subcontractors of Developer, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 20.4 Notices. All notices, demands, invoices, and written communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice: CITY: City of Azusa P.O. Box 1395 213 E. Foothill Blvd. Azusa, Ca. 91702 Attn: City Manager DEVELOPER: KB HOME Coastal Inc. 36310 Inland Valley Drive Wildomar, CA 92595 Attn: Allen Barrett Depending upon the method of transmittal, notice shall be deemed received as follows: by facsimile, as of the date and time sent; by messenger, as of the date delivered; and by U.S. Mail first class postage prepaid, as of 72 hours after deposit in the U.S. Mail. 20.5 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 20.6 Waiver. City's failure to insist upon strict compliance with any provision of this Agreement or to exercise any right or privilege provided herein, or City's waiver of any breach of this Agreement, shall not relieve Developer of any of its obligations under this Agreement, whether of the same or similar type. The foregoing shall be true whether City's actions are intentional or unintentional. Developer agrees to waive, as a defense, counterclaim or set off, any and all defects, irregularities or deficiencies in the authorization, execution or performance of the Public Improvements or this Agreement, as well as the laws, rules, regulations, ordinances or resolutions of City with regards to the authorization, execution or performance of the Public Improvements or this Agreement. 20.7 Assignment or Transfer of Agreement. Developer shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without prior written consent of City. Any attempt to do so shall be null and void, and any assignee, hypothecatee, or transferee shall acquire no right or interest by reason of such ORANGE\MMARUNEZ\33457. ] 12 attempted assignment, hypothecation, or transfer. Unless specifically stated to the contrary in City's written consent, any assignment, hypothecation, or transfer shall not release or discharge Developer from any duty or responsibility under this Agreement. 20.8 Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation. 20.9 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 20.10 lnvalidity� Severabil_i_1y. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 20.11 Consent to Jurisdiction and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties' activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of Los Angeles, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other court or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a party to the action or proceeding, or that a federal right or question is involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, Developer expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure Section 394. 20.12 Attornas' Fees and Costs. If any arbitration, lawsuit, or other legal action or proceeding is brought by one Party against the other Party in connection with this Agreement or the Property, the prevailing party, whether by final judgment or arbitration award, shall be entitled to and recover from the other party all costs and expenses incurred by the prevailing party, including actual attorneys' fees ("Costs"). Any judgment, order, or award entered in such legal action or proceeding shall contain a specific provision providing for the recovery of Costs, which shall include, without limitation, attorneys' and experts' fees, costs and expenses incurred in the following: (a) post judgment motions and appeals, (b) contempt proceedings, (c) garnishment, levy, and debtor and third party examination, (d) discovery, and (e) bankruptcy litigation. This section shall survive the termination or expiration of this Agreement. 20.13 Counterparts. This Agreement may be executed in counterpart originals, which taken together, shall constitute one and the same instrume . CITY OF AZUSA KB IIO E OASTAL By: By: (signature) (signature) —Irsncis_M- P1 nch Michael H. Frccimm, Jr. (print name) (print name) ORANGE\MMARTINEZ\33457. ] 13 City Manager City of Azusa ATTEST: By: (signature) 116�-�a� (print name) City Clerk City of Azusa (title) (signature) (print name) (title) NOTE: DEVELOPER'S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER'S BUSINESS ENTITY. ORANGEMMARTINEZ03457. 114 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside On May 23, 2011 before me, Richard R. Keller, Notary Public, personally appeared Michael H. Freeman, Jr., who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/aye subscribed to the within instrument and acknowledged to me that he/sbe4hey executed the same in his/hen*i& authorized capacity(ies), and that by his/he tth& 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. t RIClfARC R. (SELLER Commission # 1918708 kN�w. ¢ r�® Notary Public - California a 'res Riverside County " my Comm_ Expires Jan 21, 201 �rr�r^•may-i,-r�- .� �� Richard R. Keller (SEAL) State of California County of _ /-06 On j ,, /1 before me,fle-f jQ�.. 4' JJ /��� r— '(Insert Name of Notary Public an Title) personally appeared 0- -e _ �f e� who proved to me on the basis of satisfactory evidence to be the personwhose nameoPare subscribed to the within i strument and acknowledged to me that Oe 'she/ the executed the. same in is her/their authorized capacityrecentity ; and that by is her/their si afore on the instrument the person , or p upon behalf on which the person 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. A Signatured1111111;4'1"td(Seal)1401b 14pw - - - M is Loi A"M Cowl 12. M61 BOND NO. 72BSBGA3951 INITIAL PREMIUM: $2,132.0012 years SUBJECT TO RENEWAL CITY OF AZUSA PARCEL/TRACT MAP NO. 63336-2 IMPROVEMENTS PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS; WHEREAS the City of Azusa, California ("City") and KB HOME Coastal Inc., a California corporation ("Principal"), have executed an agreement for work consisting of, but not limited to, the furnishing all labor, materials, tools, equipment, services, and incidentals for all grading, roads, paving, curbs and gutters, pathways, storm drains, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities for Parcel/Tract Map No. 63336-2 ("Public Improvements"); WHEREAS, the Public Improvements to be performed by Principal are more particularly set forth in that certain Agreement for Completion of Pubic Improvements dated o�-411 ("Improvement Agreement"); WHEREAS, the Improvement Agreement is hereby referred to and incorporated herein by reference; and WHEREAS, Principal is required by the Improvement Agreement to provide a good and sufficient bond for performance of the Improvement Agreement, and to guarantee and warranty the Public Improvements constructed thereunder. NOW, THEREFORE, Principal and Hartford Fire Insurance Company ("Surety"), a corporation organized and existing under the laws of the State of Connecticut , and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto City in the sum of One Hundred** dollars ($142,105.86 _ ), said sum being not less than one hundred percent (100%) of the total cost of the Public Improvements as set forth in the Improvement Agreement, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. **Forty Two Thousand One Hundred Five and 86/100ths THE; CONDI-I-1(-)N OF THIS OBLIGATION is such, that if Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, agreements, guarantees, and warranties in the Improvement Agreement and any alteration thereof made as therein provided, to be kept and performed at the time and in the manner therein specified and in all respects according to their intent and meaning, and to indemnify and save harmless City, its officers, ORANGEWNIA RTINEZU34i7 120 employees, and agents, as stipulated in the Improvement Agreement, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As part of the obligation secured hereby, and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to any plans, profiles, and specifications related thereto, or to the Public Improvements to be constructed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition. This bond is executed and filed to comply with Section 66499 e� M. of the Government Code of California as security for performance of the Improvement Agreement and security for the one-year guarantee and warranty of the Public Improvements. IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney -in -Fact at es California this 25th day of May , 2011 KB HOIw�OtASTAL INC., Californi corp ration A VP Land & Forward Nanning ichaeI 11, Freeman. Jr. (print name) Surety Hartford Fire Insurance Company By: -W c C` Attorney -in -Fact Natalie K. Trofimoff (print name) NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION BY PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING COMPANY MUST BE ATTACHED TO THIS BOND. ORANGE�MMAR rIWZUJJ5,7 1 2 I CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Los Angeles On MAY 2 5 2011 before me, Daravy Mady, Notary Public personally appeared, Natalie K. Trofimoff who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. DARAVY MADY :NotCary OMM. #1839912 WITNESS my hand and official seal.. Public Californiao z os Angeles CountyMrn. Expires h+lAr 9 2013 i' SIGNATURENotary Public Seal 0 NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. DESCRIPTION OF ATTACHED DOCUMENT: TITLE OR TYPE OF DOCUMENT: NUMBER OF PAGES: DOCUMENT DATE: CAPACITY(IES) CLAIMED BY SIGNER(S) Signer's Name: ❑ INDIVIDUAL ❑CORPORATE OFFICER Title(s ) ❑ PARTNER(s)E] LIMITED ❑ GENERAL ® ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: Signer is representing: NAME OF PERSON(S) OR ENTITY(IES) Signer's Name ❑INDIVIDUAL ❑CORPORATE OFFICER fiIIB{s} ❑ PARTNER(S)E] LIMITED ❑ GENERAL ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: Signer is representing: NAME OF PERSON(S) OR ENTITY(IES) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside On June 10, 2011 before me, Richard R. Keller, Notary Public, personally appeared Michael H. Freeman, Jr., who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/ar-e subscribed to the within instrument and acknowledged to me that he/she4hey executed the same in his/he4the* authorized capacity(iies), and that by his/he4t4e# 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. Richard R. Keller RICHARD R. KELLER Commission # 1918708 '-+s Notary Public - California Z Z `' Riverside County n My Comm. Exp ices Jan 21, 2015 (SEAL) Direct Inquiries/Claims to: POWER. OF ATTORINEY THE HARTFORD BOND,T4 P O BOX 2103, 690 ASYLUM AVENUE HARTFORD, CONNECTICUT 06115 call: 888-266-3488 or fax: 864-757-5835 KNOW ALL PERSONS BY THESE PRESENTS THAT: Agency Code: 72-254827 Hartford Fire Insurance Company, a corporation duly organized under the laws of the Stale of Connecticut 0 Hartford Casualty Insurance Company, a corporation duly organized under the laws of the Stale of Indiana Hartford Accident and Indemnity Company, a corporation duly organized under the laws of the State of Connecticut I� Hartford underwriters Insurance Company, a corporation duly organized under the laws of the State of Connecticut Twin City Fire Insurance Company, a corporation duly organized under the laws of the Stale UI Irldlana �] Hartford Insurance Company of Illinois, a corporation duly organized under the laws of the State of Illinois 0 Hartford Insurance Company of the Midwest, a corporation duly organized under the laws of the State of Indiana Hartford Insurance Company of the Southeast, a corporation duly organized under the laws of the State of Florida having their home office in Hartford, Connecticut, (hereinafter collectively referred to as the "Companies-) do hereby make, constitute and appoint, up to the amount of unlimited. Jeffrey Strassner, Christina Johnson, Cesar F. Javier, Kristine Mendez, Natalie K. Trorrmoff, Shanna E. Judson, Patricia Talavera, Tenzer V. Cunningham of Los Angeles. CA Iheir true and lawful Attomsy(sy in -Fact, each in their separate capacity if more than one is named above, to sign its name as surety(ies) only as delineated above by ®, and to execute, seal and acknowledge any and all bonds, undertakings, contracts and other written instruments in the nature thereof, on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law. In Wltness Whereof, and as authorized by a Resolution of the Board of Directors of the Companies on January 22, 2404 the Companies have caused these presents to be signed by its Assistant Vice President and its corporate seats to be hereto affixed, duly attested by Its Assistant Secretary. Further, pursuant to Resolution of the Board of Directors of the Companies, the Companies hereby unambiguously affirm that they are and will be bound by any mechanically applied signatures applied to this Power of Attomey. �1*"b� f"e' :,..•.,r..y' t ^j940$1 e 011-7-1'1,-;---. ; w Paul A Bergenholtz, Assistant Secretary M Ross Fisher, Assistant Vice President STATE OF CONNECTICUT ss. Hartford COUNTY OF HARTFORD On this 1" day of February, 2004. before me personally came M. Ross Fisher, to me known, who being by me duly sworn, did depose and say that he resides to the County of Hartford. State of Connecticut; that he is the Assistant Vice President of the Companies, the corporations described in and which executed the above ,nstn,menl; that he knows the seals of the said corporations; that the seats affixed to the said instrument are such corporate seats; that they were so affixed by authority of (he Boards of Directors of said that and that he signed his riame thereto by like authority. . f. ♦.n.ur I'uM,c CERFFICAIE %N t nnu.a•m Hjw" r )Lh,hcr if l .r I the undersigned. Assistant Vice President of the Companies. DO HEREBY CERTIFY that the above and feregotnq is a true and correct crpy of the Prover of Attorney executed by said Companies, vhtch is still in full force effective as of Signed and sealed at the City of Hartford. MAY 25 2011 lx" A� i = ......,..,,:.: tiro r * : ; ��'-�► ` �. 4, k 4p It It ■ \�_.� \ ti,..► fir .',r`' • �•...�• ....• Gary 'N Slumper, Assistant Vice President BOND NO. 72BSBGA3951 INITIAL PREMIUM; incl, w/ erforrnance SUBJECT TO RENEWAL CITY OF AZUSA PARCEL/TRACT MAP IMPROVEMENTS LABOR AND MATERIAL BOND KNOW ALL MEN BY THESE PRESENTS: WHEREAS tine City Of'Azusa, California California corpora[ion ("Principal-), ("Cit KS F '), have executed an agreement Iv rwor cot�sistino of I Inc. a limited to, the furnisliirg all labor, ma[erials, tools, equipment, service gradirrg, roads, paving, curbs and utters, S , but not drainage facilities, traffic con[rols landscaping,athways, storm drains, stn tary sewers, d incidentals For all Parcel/Tract Map No. 63336-2 str•cet lights, aird all other req tired facilitiestrfor --- ("Public hnprovements"); WHEREAS, the Public In7prflvements to be Perforrrred by Principal a Particularly set forth in that certain .'Igreemertt for Compl.1ian of Pubic In � /hre more ("irnproveinent Agreernent"); rprovernents dated WHEREAS, [he In1proverrrent Agr Herein by relzrence; and ecrnent i5 hereby referred to and incorporated WHEREAS, Principal is required to fumisit a Improvement r7ent Agreement providing drat if Principal or any of its subcontr for any materials, provisions, or other st, band in connection With the Performance of the Public Im rovennents v Aforean or terms used in, u actors shrill fail to pay for amounts due tinder [he provisions t 'Tir e 1 S (Commencingyw `v. Pon' for, or about [he Division 3 of the California Civil Code, wit y ore labor done thereon of any kind, or this bond will pay the carne together with a reasonable a rtl� section that t of Part 4 of n h respect to such work or labor, that the Surety on the bond, ttorney's fee in rase suit is Brough[ on NOW, THEREFORE, Principal and Hartford Fire Insurance Compan corporation organized and existing under the laws of the State of and duly authorized to transact business under the laws o the State of ��Suret ' Connecticut y )� a firmly bound unto City and to an �— ' y and all material men P palifontia -a-r---'-e- re held and lirrnishing materials, provisions, and other supplies persons, Com anies or corporations of the Public Improvements, and all persons, ompan esOr corporations man or implements or machinery, for or contributing to the pU upon, For or about the performance Persons performing work or labor upon the same and a orations renting e hiring teams, materials as aforesaid excepting the Principal, the blre Improvements Supply to be done, and all II persons supplying both work and P e sum of One Hundred FortL; DOLLARS, 0RAh'(;EktirtiiAR'rWEZUJ437 I27 '**Two Thousand One Hundred Five and 86/100ths (S142jo5.86 ), said sum being not less than 100% of the total cost of the Public Improvements under the terms of the Improvement Agreement, we bind ourselves, our heirs, executors and administrators, successors and assigns jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal, his or its subcontractors, heirs, executors, administrators, successors, or assigns, shall fail to pay for any materials, provisions, or other supplies or machinery used in, upon, for or about the performance of the Public Improvements, or for work or labor thereon of any kind, or fail to pay any of the persons named in California Civil Code Section 3181, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and his subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, and all other applicable laws of the State of California and rules and regulations of its agencies, then said Surety will pay the same in or to an amount not exceeding the sum specified herein. As part of the obligation secured hereby, and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. This bond is executed and filed to comply with Section 66499 et seq. of the California Government Code as security for payment to contractors, subcontractors, and persons furnishing labor, materials, or equipment for construction of the Public Improvements or performance of [he improvement Agreement. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to File claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the California Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Surety, for value received, liereby stipulates and agrees that no change, extension of time, alteration, or addition 10 the terms of the Improvement Agreement, or to any plans, profiles, and spec) ficaLions related thereto, or to the Public Improvements to be constructed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition. ORA NGEWNInRTINEI-0]4i7 123 FN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attomey-in-Fact at Los An-geles, California , this 25th day of May 2011 KB HOME COASTAL INC., a Hartford t=i e I surance Company California corporation Sur ty By. t Y VP Land & Fonyard Planning Attorney -in -Fact vlichaei H. Freeman -Jr. Natalie K. Trofimoff (print name) (print name) NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION BY PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING COMPANY MUST BE ATTACHED TO THIS BOND. ORANCEWMARTINEZ03451. 124 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Los Angeles On MAY 2 5 2011 before me, Daravy Mady, Notary Public personally appeared, Natalie K. T who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 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. DARAVY MA€ Y �_ r COMM. #1839912 ,X ; ns Notary Public - Callfornia A Z ' 1.0s Angeles County ° My Comm, Expires Mar. 9, 2013 Notary Public Seal SIGNATURE NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. DESCRIPTION OF ATTACHED DOCUMENT: TITLE OR TYPE OF DOCUMENT: NUMBER OF PAGES: DOCUMENT DATE: CAPACITY(IES) CLAIMED BY SIGNER(S) Signer's Name: ❑ INDIVIDUAL ❑CORPORATE OFFICER Title(s) ❑ PARTNER(S)E] LIMITED ❑ GENERAL ® ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: Signer is representing: NAME OF PERSON(S) OR ENTITY(IES) Signer's Name, ❑INDIVIDUAL []CORPORATE OFFICER Title(s) ❑ PARTNER(S)❑ LIMITED ❑ GENERAL ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: Signer is representing: NAME OF PERSON(S) OR ENTITY(IES) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside On June 10. 2011 before me, Richard R. Keller, Notary Public, personally appeared Michael H. Freeman Jr., 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 t#ey executed the same in his/he4the# authorized capacity(+es), and that by his/heO414& 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. Richard R. Keller OMY RICHARD R. KELLER Commission #r 1918708 Notary Public - California aRiverside County Comm E=xpires Jan 21, 2015 (SEAL) Direct Inquiries/Claims to: . POWER OF ATT THE HARTFORD �� � BOND, T4 P O BOX 2103, 690 ASYLUM AVENUE HARTFORD, CONNECTICUT 06115 call: 888-268-3488 or fax: 860-757-5835 KNOW ALL PERSONS BY THESE PRESENTS THAT: Agency Code: 72.254827 X� Hartford Fire Insurance Company, a corporation duly organiziod under the laws of the State of Connecticut X� Hartford Casualty Insurance Company, a corponmon duly organized under the laws of the State of Indiana Hartford Accident and Indemnity Company, a corporation duly organized under the laws of the State of Connc'cticul Hartford Underwriters Insurance Company, a corporation duly organized under the laws of the State of Connecticut Twin City Flre Insurance Company, a corporation duly organized under the laws of the State of Indiana Hartford insurance Company of Illlnols, a corporation duly organized under the laws of the State of Illinois 0 Hartford Insurance Company of the Midwest, a corporation duly organised under the laws of the State of Indiuna 0 Hartford Insurance Company of the Southeast, a corporation duly organized under the laws of the Stale of F londa having their home office in Hartford, Connecticut, (hereinafter collectively referred to as the 'Companies') do hereby make, constitute and appoint, up to the amount of unlimited. Jeffrey Strassner, Christina Johnson, Cesar F- Javier, Kristine Mendez, Natalie K. Trorimoff, Shanna E. Judson, Patricia Talavera, Tenzer V- Cunningham of Los Angeles, CA Their true and lawful Attorneys) -in -Fact, each in their separate capacity it more than one is named above, to sign its name as surety(ies) only as delineated above by ®, and to execute, seal and acknowledge any and all bonds, undertakings, contracts and other written instruments in the nature thereof, on behalf of the Companies in (heir business of guaranteeing the Fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law. In Witness Whereof, and as authorized by a Resolution of the Board of Oirectors of the Companies on January 22, 2004 the Companies have caused these presents to be signed by its Assistant Vice President and its corporate seals to be hereto affixed, duly attested by its Assislant Secretary. Further, pursuant to Resolution of the Board of Directors of the Companies, the Companies hereby unambiguously affirm that they are and will be bound by any mechanically applied signatures applied to this Power of Attorney. 4 i .Khr. •rlrf� 1 tb tiVAI ®row-?,�3 .yYry. U ►wY Paul A. 8ergenholtz, Assistant Secretary M Ross Fisher, Assistant Vice President STATE OF CONNECTICUT Ss. Hartford COUNTY OF HARTFORD On this t" day of February, 2004, before me personally came M- Ross Fisher, to me known, who being by me duly sworn, did depose and say: that he resides in the County of Hartford. Slate of Connecticut; that he rs the Assistant Vice President of the Companies, the corporations described in ,and which executed the above instrument: that he knows the seals of the said corporations; that the seals affixed to the said ostwment are such corporate seals: that they were so affixed by authority of the Boards of Directors of said corporations and that he signed his narne thereto by like authority. �r"vv i'ablk CERIFICAN MN( ""'••••...V wrviktuherrl I, the undersigned, Assistant Vice President of the Companies, DO HEREBY CERTIFY that the above and foregoing is a true and correct ropy of the Power of Attorney executed by said Companies, which is still in full force effective as of Signed and sealed at the City of Hartford 3 �■' Joel s y■41 f 3 ii ��1' i 'T/.�" ., ,'~� • Gary 1,14 Stumper Assistant V ce PresidLnl HOME CERTIFICATE OF SECRETARY KB ROME COASTAL INC. [SOUTHERN CALIFORNIA DIVISION] I, Tony Richelieu, do hereby certify that I am the duly elected, qualified and acting Secretary of KB HOME Coastal Inc., a California corporation [Southern California Division, f/k/a Southern Califomia/Coastal Division] (this "Corporation"). I do further certify that the resolutions attached hereto as Exhibit "A" are a true and complete representation of such resolutions that were duly adopted by the unanimous written consent of the Board of Directors of this Corporation as of June 9, 2010, and that said resolutions have not been rescinded, modified or revoked, and are in full force and effect. WITNESS MY HAND this 9U' day of June, 2010. By. -- Torry Richelieu Secretary EXHIBIT "A" KB HOME COASTAL INC. [SOUTHERN CALIFORNIA DIVISION] RESOLUTIONS ADOPTED AS OF JUNE 9, 2010 Signing Authority— Southern California Division RESOLVED.. ., that the following resolutions shall supersede and replace any and all resolutions previously adopted with respect to the powers and authority herein granted including, but not limited to, resolutions adopted as of March 18, 2009, and any such prior authority is hereby revoked and restated in its entirety as follows: RESOLVED FURTHER, that the following officers and/or employees of this Corporation be, and each hereby is, authorized to act on behalf of this Corporation; provided, however, that such authority shall be limited to such authority as may be provided herein below and to other ordinary course of business transactions relating to the operations of this Corporation as indicated herein below: Stephen J. Ruffner President James D. Widner Executive Vice President [Regional President] Thomas DiPrima Executive Vice President John P. Fenn Senior Vice President, Operations Eric Hoffman Senior Vice President, Land Bruce Tripp Senior Vice President, Land Acquisition Michael H. Freeman, Jr. Vice President, Land and Forward Planning Michael J. Gartlan Vice President, Finance Daniel C. Loth Vice President, Sales and Marketing Eric Weitz Vice President, Land Acquisition John Abboud Director, DUP and Assistant Secretary Eric Scheck Senior Project Manager Allen Barrett Senior Project Manager Ron Mertzel Manager, Land Acquisition and Planning Scott Hansen Project Manager Richard Keller Escrow Manager Bob Kronenfeld Director, Marketing Sonia Pena Director of Sales Matt Rizzo Senior Manager, Finance RESOLVED FURTHER, that any of the following persons, acting alone be, and each hereby is, authorized and empowered for and on behalf and in the name of this Corporation and any Corporation Entity (which, for these purposes is (a) any limited liability company in which this Corporation is the sole member and (b) any partnership in which this Corporation is the general partner), to execute, acknowledge and deliver any and all documents deemed by such person to be necessary or appropriate in connection with the acquisition and/or disposition of bulk parcels of real property by this Corporation or any Corporation Entity, including, but not limited to, land purchase and sale agreements, purchase and sale of residential dwellings and lots, amendments, assignments, escrow instructions, grant deeds, promissory notes, deeds of trust, maps, agreements and related documents: Stephen J. Ruffner James D. Widner RESOLVED FURTHER, that the signature of the President or any Executive Vice President of this Corporation is required on any and all disbursements in excess of $1,000 for non -contract items that are executed and delivered for and on behalf of this Corporation. RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized and empowered to sign, execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, any and all documents deemed by such person necessary or appropriate in connection with this Corporation's or any Corporation Entity's (a) land improvement and construction activities, including, but not limited to, purchase orders and subcontracts for labor and materials; and (b) land improvement and development activities including but not limited to, easements, development agreements, applications for land development approvals, option agreements, subdivision approvals, declarations of covenants, conditions and restrictions, and any other submissions required to be filed with the California Department of Real Estate ("DRE"), subdivision and tract maps and exhibits thereto, applications and submissions to obtain preliminary and final subdivision public reports and supporting documents: Allen Barrett John P. Fenn Michael H. Freeman, Jr. Michael J. Gartlan Scott Hansen Stephen J. Ruffner Eric Scheck Eric Weitz James D. Widner Thomas DiPrima Eric Hoffman Ron Mertzel Bruce Tripp RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized to sign, execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, any and all documents required in connection with this Corporation's or any Corporation Entity's development of real property including, but not limited to, improvement bonds, subdivision improvement agreements, subdivision maps, building permit applications and such other documents related to the permit process: Allen Barrett John P. Fenn Michael H. Freeman, Jr. Michael J. Gartlan Scott Hansen Stephen J. Ruffner Eric Scheck Eric Weitz James D. Widner Thomas DiPrima Eric Hoffman Ron Mertzel Bruce Tripp RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized to execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, (a) any and all documents required to be submitted to the DRE in connection with this Corporation's or any Corporation Entity's preliminary and final subdivision public report process, and to support filings required to be made pursuant to such DRE requirements; (b) utility contracts and (c) applications and other ancillary documents required to obtain city and/or County permits for projects developed by this Corporation or any Corporation Entity: John P. Fenn Stephen J. Ruffner Thomas DiPrima Bruce Tripp Michael J. Gartlan Michael H. Freeman, Jr. Eric Weitz James D. Widner Eric Hoffman Ron Mertzel RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized and empowered to execute, acknowledge and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, any and all documents deemed necessary or appropriate (a) to convey title in and to property which comprises the common area in planned residential projects developed by this Corporation or any Corporation Entity to be conveyed to each respective homeowners association and any and all restrictive covenants, conditions and easements and any and all supplemental declarations with respect thereto; (b) in connection with the development of real property by this Corporation or any Corporation Entity; (c) in connection with the permitting processing with respect to such real property developments and (d) to allow the DRE to issue a public report; such documents to include, without limitation, consultant contracts, utility contracts, improvement bonds, subdivision improvement agreements, subdivision maps, tract maps, parcel maps and building permit applications: John P. Fenn Michael J. Gartlan Michael H. Freeman, Jr. Stephen J. Ruffner Eric Weitz, James D. Widner Thomas DiPrima Eric Hoffman Ron Mertzel Bruce Tripp RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized and empowered for and on behalf and in the name of this Corporation and any Corporation Entity, to take all actions and to execute, deliver, file and record any and all certificates, instruments, agreements and documents as may be required or as such officer may deem necessary,, advisable or proper, in connection with the financing of this Corporation's or any Corporation Entity's land improvement and development activities, including the public facilities necessary to serve such development, including, but not limited to, (a) the formation of assessment districts or community facilities districts pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, or any other comparable or similar statute or regulation; (b) authorizing the levy of assessments or special taxes against the real property of this Corporation or any Corporation Entity by any such assessment district or community facilities district; and (c) authorizing the issuance of bonds by any such assessment district or community facilities district secured by a first pledge of the proceeds of the special taxes or assessments levied on the real property of this Corporation or any Corporation Entity: John P. Fenn Michael J. Gartlan Michael H. Freeman, Jr. Stephen J. Ruffner James D. Widner Thomas DiPrima Eric Hoffman RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized to sign, execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, any and all documents required in connection with the sale of individual lots to third parties, including, but not limited to, purchase and sale agreements, escrow instructions, notices of completion, warranty/grant deeds, contracts (including amendments, assignments, addendums and other ancillary documents forming a part of the contract), holdback agreements, termite inspection certificates, buyer and seller certificates as required under FHA, VA and other government sponsored loan programs, to effect the sale of such lots to purchasers: John P. Fenn Michael J. Gartlan Matt Rizzo John Abboud Stephen J. Ruffner James D. Widner Thomas DiPrima Eric Hoffman Richard Keller* ; provided, that each person designated by an asterisk is not authorized to sign warranty/grant deeds RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized to sign, execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, any and all master subcontract agreements and related documents and material purchase agreements, subcontract work agreements and related documents with respect to the construction of improvements on real property: Allen Barrett John P. Fenn Michael H. Freeman, Jr. Michael J. Gartlan Stephen J. Ruffner James D. Widner Thomas DiPrima Eric Hoffman RESOLVED FURTHER, that any one of the following persons, acting alone, is authorized and empowered for and on behalf and in the name of this Corporation and any Corporation Entity, to sign, execute and deliver master consultant agreements, purchase orders and subcontracts for labor and materials and related documents with respect to development of real property: Allen Barrett John P. Fenn Michael H. Freeman, Jr. Michael J. Gartlan Stephen J. Ruffner James D. Widner Thomas DiPrima Eric Hoffman Ron Mertzel RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized and empowered to sign, execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, any and all master service agreements, vendor agreements, independent contractor sales agreements and supporting documents with respect to the marketing, sales and management of real property: Bob Kronenfeld Daniel C. Loth John Abboud Sonia Pena RESOLVED FURTHER, that John Abboud acting alone, be, and she hereby is, authorized and empowered to sign, execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, any and all documents required in connection with this Corporation's or any Corporation Entity's customer service and new home warranty activities and other business operations including, but not limited to, settlement agreements, purchase orders and subcontracts for labor and materials; RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized and empowered to sign, execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, any and all documents establishing bank accounts, financing arrangements and other ordinary course banking and financial arrangements: Michael J. Gartlan I Stephen J. Ruffner James D. Widner RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized and empowered to act on behalf of this Corporation in its capacity as a member (other than a sole member) of any limited liability company or as a partner (other than a general partner) of any partnership in which this Corporation owns an interest, directly or indirectly: Stephen J. Ruffner James D. Widner RESOLVED FURTHER, that Stephen J. Ruffner, President of this Corporation and James D. Widner, Executive Vice President [Regional President] of this Corporation be, and each hereby is, authorized, empowered and directed, for and on behalf and in the name of this Corporation and any Corporation Entity, to take such further actions and to do all such further things which each may deem necessary and appropriate to accomplish the purpose and to effectuate the intent of the foregoing resolutions with respect to this Corporation or any Corporation Entity. Storm Water Coif}liance Representative RESOLVED FURTHER, that Allen Barrett, Senior Project Manager, be, and hereby is, designated as the Corporation's Storm Water Compliance Representative for purposes of the Corporation's compliance with the storm water consent decree entered on July 23, 2008, and is authorized, empowered and directed to take such actions, prepare and execute such instruments, undertake and perform such inspections and reviews, and to do all such things which he may deem necessary and appropriate to accomplish compliance with the decree and the Corporation's policies, standards and requirements with respect to the decree. RESOLVED FURTHER, that any and all documents executed or actions undertaken by any officers or employees listed in the foregoing resolutions between March 18, 2009 and the date hereof substantively within the scope of their authority as designated above be, and they hereby are, ratified, confirmed and approved. EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY PARCEL/TRACT NO. 63336-2 ORANGE\MMARTINEZU3457. 1 1 % EXHIBIT "A" DESCRIPTION OF THE LAND THE REAL PROPERTY REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF AZUSA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: LOTS 15, 16, 17 AND "E" OF TRACT NO. 63336-1, IN THE CITY OF AZUSA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1326 PAGES 63 THROUGH 66, INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM ALL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN, GEOTHERMAL STEAM AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING, THAT MAY BE WITHIN OR UNDER THE LAND, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING AND OPERATING THEREFOR AND STORING IN AND REMOVING THE SAME FROM SAID LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN THE LAND, OIL OR GAS WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES WITHOUT, HOWEVER, THE RIGHT TO DRILL, MINE, STORE, EXPLORE OR OPERATE THROUGH THE SURFACE OR THE UPPER 500 FEET OF THE SUBSURFACE OF THE LAND, AS RESERVED BY AZUSA LAND PARTNERS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, IN DEED RECORDED SEPTEMBER 25, 2006 AS INSTRUMENT NO. 06- 2121969, OFFICIAL RECORDS. PARCEL 2: LOTS 1 THROUGH 55 AND "B" THROUGH "H", INCLUSIVE OF TRACT MAP 63336-2 IN THE CITY OF AZUSA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, FILED IN BOOK 1340, PAGES 56THROUGH 59, INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN, GEOTHERMAL STEAM AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING, THAT MAY BE WITHIN OR UNDER THE LAND, TOGETHER WITH THE EXHIBIT "A" InRi17RVI TO GRANT DEED PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING AND OPERATING THEREFOR AND STORING IN AND REMOVING THE SAME FROM SAID LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN THE LAND, OIL OR GAS WELLS, TUNNELS, AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES WITHOUT, HOWEVER, THE RIGHT TO DRILL, MINE STORE, EXPLORE OR OPERATE THROUGH THE SURFACE OR THE UPPER 500 FEET OF THE SUBSURFACE OF THE LAND AS RESERVED BY AZUSA LAND PARTNERS, LLC, A DELAWARE LIMITED LIABILITY COMPANY ON GRANT DEED RECORDED AUGUST 28, 2007 AS INSTRUMENT NO. 07- 2007595, OF OFFICIAL RECORDS. APN: 8625-030-017 AND 8625-030-018 AND 8625-030-019 AND 8625-030-043 AND 8625- 036-056 AND 8625-036-057 AND 8625-036-058 AND 8625-036-059 AND 8625-036-060 AND 8625-036-061 AND 8625-036-062 AND 8625-036-001 AND 8625-036-002 AND 8625- 036-003 AND 8625-036-004 AND 8625-036-005 AND 8625-036-006 AND 8625-036-007 AND 8625-036-008 AND 8625-036-009 AND 8625-036-010 AND 8625-036-011 AND 8625- 036-012 AND 8625-036-013 AND 8625-036-014 AND 8625-036-015 AND 8625-036-016 AND 8625-036-017 AND 8625-036-018 AND 8625-036-019 AND 8625-036-020 AND 8625- 036-021 AND 8625-036-022 AND 8625-036-023 AND 8625-036-024 AND 8625-036-025 AND 8625-036-026 AND 8625-036-027 AND 8625-036-028 AND 8625-036-029 AND 8625- 036-030 AND 8625-036-031 AND 8625-036-032 AND 8625-036-033 AND 8625-036-034 AND 8625-036-035 AND 8625-036-036 AND 8625-036-037 AND 8625-036-038 AND 8625- 036-039 AND 8625-036-040 AND 8625-036-041 AND 8625-036-042 AND 8625-036-043 AND 8625-036-044 AND 8625-036-045 AND 8625-036-046 AND 8625-036-047 AND 8625- 036-048 AND 8625-036-049 AND 8625-036-050 AND 8625-036-051 AND 8625-036-052 AND 8625-036-053 AND 8625-036-054 AND 8625-036-055 1085138vt -2- EXHIBIT "B" LIST OF PUBLIC IMPROVEMENTS PARCEL/TRACT NO. 63336-2 ORANG EWMA RTINEZ\ 3 3 45 7. 118 Tract 63336-02 Rosedale 1556 $ 57.00 If $ 88,692.00 $ 8,869.20 10" VCP Total Unit If Units Bond $ Reduced House laterals Streets Quantites Price $ Estimate $ Amount AC 783.6 $ 55.00 Tons $ 43,098.00 $ 4,309.80 Base 1099.3 $ 40.00 Tons $ 43,972.00 $ 4,397.20 C&G 2815 $ 25.00 LF $ 70,375.00 $ 7,037.50 Street Lights 5 R 1,500.00 EACH $ 7,500.00 $ 7,500.00 Concrete Pavement 176,076.60 $ 5.00 SQ FT $ - $ - Curb Ramps 3 $ 1,500.00 each $ 4,500.00 $ 4,500.00 Sidewalk 9000 $ 3.50 sq ft $ 31,500.00 $ 31,500.00 Misc items 16" DIP $ 70.00 10% $ 20,094.50 $ 5,023.63 total $ 3,000.00 each $ $ 200,945.00 $ 64,268.13 7 $ 3,000.00 each $ 21,000.00 $ 221,039.50 Thrust Blocks Storm Drains each $ - If - Fire Hydrants 4 $ 2,000.00 18" RCP 32 $ 58.00 If $ 1,856.00 $ 185.60 24" RCP 21 $ 82.00 If $ 1,722.00 $ 172.20 30' RCP $ $ 110.00 If $ - $ - 36' RCP $ 140.00 If $ - $ $ 42" RCP Add Fine Grading and site repair $ 156.00 If $ - $ Contingency 54" RCP $ 250.00 If $ - $ 60" RCP $ 300.00 If $ - $ Other RCP $ 320.00 If $ - $ - Manholes 1 $ 3,000.00 each $ 3,000.00 $ 300.00 Junction Structures $ 1,000.00 each $ - $ - Catch Basins 2 $ 3,500.00 each $ 7,000.00 $ 700.00 Catch Basins/grates $ 4,000.00 each $ - Misc items $ 13,578.00 $ 1,357.80 Sewers 8" VCP 1556 $ 57.00 If $ 88,692.00 $ 8,869.20 10" VCP $ 61.00 If $ - $ - House laterals 55 $ 1,000.00 each $ 55,000.00 $ 5,500.00 12" VCP $ 70.00 If $ - $ - Manholes 8 $ 3,000.00 each $ 24,000.00 $ 2,400.00 Misc items 5% $ 8,384.60 $ 838.46 $ 167,692.00 $ 17,607.66 $ 176,076.60 Water 8" DIP 1615 $ 43.00 If $ 69,445.00 $ 6,944.50 12" DIP $ 60.00 If $ - $ - 16" DIP $ 70.00 If $ - $ - 12" Valves $ 3,000.00 each $ $ - 8" Valves 7 $ 3,000.00 each $ 21,000.00 $ 2,100.00 Thrust Blocks $ 1,000.00 each $ - $ - Fire Hydrants 4 $ 2,000.00 each $ 8,000.00 $ 800.00 Misc items 5% $ 4,922.25 $ 492.23 $ 98,445.00 $ 10,336.73 $ 103,367.25 Grand Total est $ 514,061.35 $ 93,570.31 Add Fine Grading and site repair $ 30,000.00 Contingency $ 51,406.14 $ 18,535.55 Bond amount $ 565,467.49 $ 142,105.86 EXHIBIT "C" SURETY BONDS AND OTHER SECURITY PARCEL/TRACT NO. 63336-2 As evidence of understanding the provisions contained in this Agreement, and of the Developer's intent to comply with same, the Developer has submitted the below described security in the amounts required by this Agreement, and has affixed the appropriate signatures thereto: PERFORMANC BOND PRINCIPAL AMOUNT: $ Surety: 1�'7� �rc��e d �s'a aa[ Co - Attorney -in -fact: 7'eoA&tc# Address: en eze MATERIA L AND LABOR BOND PRINCIPAL AMOUNT: $ Surety: , ��r" r� Are, -7wt r" Attorney-in-fact: Z47 o �{ Address: CASH MONUMENT SECURITY: $ )a, &30, oo Amount deposited per Cash Receipt No. 3 Date: 71'14/ 2_o � ORANG EMMARTINEM 3457. 119 cl — � z , y }• ,i,. -u { +b a.'�e,. *�4►.!,.Yfj_* ar"`', N''.:.':' f . •mow -tiA t �'474` ,- 4 a` :: :ita w S L: zfP. `&At I C'9C/FORT\P 16ZUS CONSENT CALENDAR TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: TITO HAES, PUBLIC WORKS DIRECTOR/ASSISTANT CITY MANAGER VIA: F.M. DELACH, CITY MANAGER DATE: JULY 25, 2011 SUBJECT: SUBSTITUTION OF BONDS FOR FINAL TRACT MAP 63336-2, MAPLETON AT ROSEDALE, BY KB HOME COASTAL, INC. RECOMMENDATION It is recommended that: 1. The City Council approves and authorizes the City Manager to execute the attached Agreement for Completion of Public Improvements for Tract 63336-2 to construct the required public improvements. 2. The City Council accepts the attached Faithful Performance Bond in the amount of$142,105.86,the attached Labor and Materials Bond in the amount of$142,105.86 for streets,sewers and water lines, as guaranteed by Hartford Fire Insurance Company, and a cash monument bond in the amount of $10,000. 3. The City Council hereby exonerates the original bonds posted by Christopher Homes as guaranteed by Arch Insurance Company,including a Faithful Performance Bond in the amount of$565,467.49, and a Labor and Materials Bond for $282,733.74, for streets, sewers and water lines. BACKGROUND The City Council originally approved the Final Map for Tract 63336-2,known as Mapleton,on October 1, 2007, submitted by Christopher Homes. At the same time, the City Council also approved an Agreement for Public Improvements and related performance and labor and materials bonds by Arch Insurance Company on behalf of Christopher Homes in the amounts as follows: 1. For streets,sewers and water lines,a Faithful Performance Bond in the amount of$565,467.49,and a Labor and Materials Bond in the amount of$282,733.74, 2. For the construction of a portion of the Sierra Madre Trail,a Faithful Performance Bond of$70,796 and Labor and Materials Bond for $35,398. • ,'1 eil 7 ,g-51# /, /177-- After default by Christopher Homes during the recession, JP Morgan Chase Bank foreclosed on the tract,which has now been purchased by KB Home Coastal Inc. The new owner desires to substitute the old bonds with new bonds to guarantee the proposed public improvements. Some of the tract improvements have been completed by Christopher Homes;therefore the current bond amount reflects the remaining work to be done. In addition, while most of the work of the adjacent portion of the Sierra Madre Trail has been completed, the City has not yet accepted those improvements. Until the City accepts the trail improvements,the bonds posted by Christopher Homes for the Sierra Madre Trail will remain in place. The remaining public improvements are expected to be completed in the near future, and will be offered to the City for acceptance as they are completed. Attached is a new Agreement for Completion of Public Improvements for Tract No. 63336-2 to construct required public improvements, along with a Faithful Performance Bond in the amount of $142,105.86,and a Labor and Materials Bond in the amount of$142,105.86,as guaranteed by Hartford Fire Insurance Company. One of the requirements negotiated between the City and KB Home Coastal Inc., is the completion of the easterly landscape slope of the Arroyo, immediately west of the subject tract. Because this is a master developer (Rosedale Land Partners, "RLP") obligation, which is scheduled to be constructed farther into the future in 2014,KB Home will use best efforts to construct the improvements with RLP's consent, and post a bond to ensure its completion. This bond will be presented for Council approval at the next Council meeting. FISCAL IMPACT The fiscal impact of the Rosedale project was analyzed in a Fiscal Impact Study approved as part of the original Rosedale entitlements in 2003. Attachments: Agreement for Completion of Public Improvements Performance Bond Labor and Materials Bond RECORDING REQUESTED BY: WHEN RECORDED RETURN TO: CITY OF AZUSA ATTN: SPACE ABOVE THIS LINE FOR RECORDER'S USE Exempt from recording fee,per Government Code Section 6103 CITY OF AZUSA,CALIFORNIA By: City Clerk AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS PARCEL/TRACT NO. 63336- 2 between CITY OF AZUSA a California municipal corporation and KB HOME COASTAL INC. a California corporation ORANGE\MMARTINEZ\33457.I AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS PARCEL/TRACT MAP NO. 63336-02 AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS TRACT MAP NO. 63336-02 I. PARTIES AND DATE. This Agreement for the Completion of Public Improvements ("Agreement") is entered into as of this day of , 2011 by and between the City of Azusa, a California municipal corporation ("City") and KB HOME Coastal Inc., a California corporation with its principal office located at 36310 Inland Valley Drive, Wildomar, California 92595 ("Developer"). City and Developer are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as the "Parties." II. RECITALS. A. Developer has heretofore submitted to City an application for approval of a tract map for real property located within City, a legal description of which is attached hereto as Exhibit "A" ("Property"), and which is identified in City records Tract Map No. 63336-2. B. Developer's application for a tentative tract map for Tentative Tract No. 54057 was conditionally approved by the City Council on February 3, 2003. C. Developer has not completed all of the work or made all of the public improvements required by Chapter 66, Article V of the Azusa Municipal Code, the Subdivision Map Act (Government Code sections 66410 et seq.), the conditions of approval for Tract No. 63336-2 or other ordinances, resolutions, or policies of City requiring construction of improvements in conjunction with the subdivision of land. D. Pursuant to Section 66-465(j) and the applicable provisions of the Map Act, Developer and City enter into this Agreement for the timely construction and completion of the public improvements and the furnishing of the security therefor, acceptable to the City Engineer and City Attorney, for Tract No. 63336-2. E. Developer's execution of this Agreement and the provision of the security are made in consideration of City's approval of the final map for Tract No. 63336-2. III. TERMS. 1.0 Effectiveness. This Agreement shall not be effective unless and until all three of the following conditions are satisfied: (a) Developer provides City with security of the type and in the amounts required by this Agreement; (b) Developer executes and records this Agreement in the Recorder's Office of the County of Los Angeles; (c) the City Council of the City ("City Council") approves the final map for Tract No.63336-2 and (d) Developer records the final map for Tract No. 63336-2 in the Recorder's Office of the County of Los Angeles. If the above ORANGE\MMARTINEZ\33457. 12 described conditions are not satisfied, this Agreement shall automatically terminate without need. of further action by either City or Developer, and Developer may not thereafter record the final map for Parcel/Tract No.63336-2. 2.0 Public Improvements. Developer shall construct or have constructed at its own cost, expense, and liability all improvements required by City as part of the approval of Parcel/Tract No.63336-2, including, but not limited to, all grading, roads, paving, curbs and gutters, pathways, storm drains, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities as shown in detail on the plans, profiles, and specifications which have been prepared by or on behalf of Developer for Parcel/Tract Map No. 63336-2 ("Public Improvements"). The Public Improvements are more specifically described in Exhibit "B," which is attached hereto and incorporated herein by this reference. Construction of the Public Improvements shall include any transitions and/or other incidental work deemed necessary for drainage or public safety. The Developer shall be responsible for the replacement, relocation, or removal of any component of any irrigation water system in conflict with the construction or installation of the Public Improvements. Such replacement, relocation, or removal shall be performed to the complete satisfaction of the City Engineer and the owner of such water system. Developer further promises and agrees to provide all equipment, tools, materials, labor, tests, design work, and engineering services necessary or required by City to fully and adequately complete the Public Improvements. 2.1 Prior Partial Construction of Public Improvements. Where construction of any Public Improvements has been partially completed prior to this Agreement, Developer agrees to complete such Public Improvements or assure their completion in accordance with this Agreement. 2.2 Permits; Notices; Utility Statements. Prior to commencing any work, Developer shall, at its sole cost, expense, and liability, obtain all necessary permits and licenses and give all necessary and incidental notices required for the lawful construction of the Public Improvements and performance of Developer's obligations under this Agreement. Developer shall conduct the work in full compliance with the regulations, rules, and other requirements contained in any permit or license issued to Developer. Prior to commencing any work, Developer shall file a written statement with the City Clerk and the City Engineer, signed by Developer and each utility which will provide utility service to the Property, attesting that Developer has made all deposits legally required by the utility for the extension and provision of utility service to the Property. 2.3 Pre-approval of Plans and Specifications. Developer is prohibited from commencing work on any Public Improvement until all plans and specifications for such Public Improvement have been submitted to and approved by the City Engineer, or his or her designee. Approval by the City Engineer shall not relieve Developer from ensuring that all Public Improvements conform with all other requirements and standards set forth in this Agreement. 2.4 Quality of Work; Compliance With Laws and Codes. The construction plans and specifications for the Public Improvements shall be prepared in accordance with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other ORANGE\MMARTINEZ\33457. 13 requirements. The Public Improvements shall be completed in accordance with all approved maps, plans, specifications, standard drawings, and special amendments thereto on file with City, as well as all applicable federal, state, and local laws, ordinances, regulations, codes, standards, and other requirements applicable at the time work is actually commenced. 2.5 Standard of Performance. Developer and its contractors, if any, shall perform all work required to construct the Public Improvements under this Agreement in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Developer represents and maintains that it or its contractors shall be skilled in the professional calling necessary to perform the work. Developer warrants that all of its employees and contractors shall have sufficient skill and experience to perform the work assigned to them, and that they shall have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the work, and that such licenses, permits, qualifications and approvals shall be maintained throughout the term of this Agreement. 2.6 Alterations to Improvements. The Public Improvements in Exhibit "B" are understood to be only a general designation of the work and improvements to be done, and not a binding description thereof. All work shall be done and improvements made and completed as shown on approved plans and specifications, and any subsequent alterations thereto. If during the course of construction and installation of the Public Improvements it is determined that the public interest requires alterations in the Public Improvements, Developer shall undertake such design and construction changes as may be reasonably required by City. Any and all alterations in the plans and specifications and the Public Improvements to be completed may be accomplished without giving prior notice thereof to Developer's surety for this Agreement. 3.0 Maintenance of Public Improvements and Landscaping. City shall not be responsible or liable for the maintenance or care of the Public Improvements until City approves and accepts them. City shall exercise no control over the Public Improvements until accepted. Any use by any person of the Public Improvements, or any portion thereof, shall be at the sole and exclusive risk of the Developer at all times prior to City's acceptance of the Public Improvements. Developer shall maintain all the Public Improvements in a state of good repair until they are completed by Developer and approved and accepted by City, and until the security for the performance of this Agreement is released. Maintenance shall include, but shall not be limited to, repair of pavement, curbs, gutters, sidewalks, signals, parkways, water mains, and sewers; maintaining all landscaping in a vigorous and thriving condition reasonably acceptable to City; removal of debris from sewers and storm drains; and sweeping, repairing, and maintaining in good and safe condition all streets and street improvements. It shall be Developer's responsibility to initiate all maintenance work, but if it shall fail to do so, it shall promptly perform such maintenance work when notified to do so by City. If Developer fails to properly prosecute its maintenance obligation under this section, City may do all work necessary for such maintenance and the cost thereof shall be the responsibility of Developer and its surety under this Agreement. City shall not be responsible or liable for any damages or injury of any nature in any way related to or caused by the Public Improvements or their condition prior to acceptance. ORANGE\MMARTINEZ\33457. 14 • • 4.0 Construction Schedule. Unless extended pursuant to this Section 4.1 of this Agreement, Developer shall fully and adequately complete or have completed the Public Improvements within twelve (12) months following approval of the final map for Tract No.63336-2. 4.1 Extensions. City may, in its sole and absolute discretion, provide Developer with additional time within which to complete the Public Improvements. It is understood that by providing the security required under Section 13.0 et m. of this Agreement, Developer and its surety consent in advance to any extension of time as may be given by City to Developer, and waives any and all right to notice of such extension(s). Developer's acceptance of an extension of time granted by City shall constitute a waiver by Developer and its surety of all defense of laches, estoppel, statutes of limitations, and other limitations of action in any action or proceeding filed by City following the date on which the Public Improvements were to have been completed hereunder. In addition, as consideration for granting such extension to Developer, City reserves the right to review the provisions of this Agreement, including, but not limited to, the construction standards, the cost estimates established by City, and the sufficiency of the improvement security provided by Developer, and to require adjustments thereto when warranted according to City's reasonable discretion. 4.2 Accrual of Limitations Period. Any limitations period provided by law related to breach of this Agreement or the terms thereof shall not accrue until Developer has provided the City Engineer with written notice of Developer's intent to abandon or otherwise not complete required or agreed upon Public Improvements. 5.0 Grading. Developer agrees that any and all grading done or to be done in conjunction with construction of the Public Improvements or development of Parcel/Tract No.63336-2 shall conform to all federal, state, and local laws, ordinances, regulations, and other requirements, including City's grading regulations. In order to prevent damage to the Public Improvements by improper drainage or other hazards, the grading shall be completed in accordance with the time schedule for completion of the Public Improvements established by this Agreement, and prior to City's approval and acceptance of the Public Improvements and release of the Security as set forth in Section 13.0 et sg. of this Agreement. 6.0 Utilities. Developer shall provide utility services, including water, power, gas, and telephone service to serve each parcel, lot, or unit of land within Parcel/Tract No. 63336-2 in accordance with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the regulations, schedules and fees of the utilities or agencies providing such services. Except for commercial or industrial properties, Developer shall also provide cable television facilities to serve each parcel, lot, or unit of land in accordance with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the requirements of the cable company possessing a valid franchise with City to provide such service within City's jurisdictional limits. All utilities shall be installed underground. 7.0 Fees and Charges. Developer shall, at its sole cost, expense, and liability, pay all fees, charges, and taxes arising out of construction of the Public Improvements, including, but not limited to, all plan check, design review, engineering, inspection, and other service fees, and ORANGE\MMARTINEZ\33457. 15 any impact or connection fees established by City ordinance, resolution, regulation, or policy, or as established by City relative to Parcel/Tract No.63336-2. 8.0 City Inspection of Public Improvements. Developer shall, at its sole cost, expense, and liability, and at all times during construction of the Public Improvements, maintain reasonable and safe facilities and provide safe access for inspection by City of the Public Improvements and areas where construction of the Public Improvements is occurring or will occur. 9.0 Default;Notice; Remedies. 9.1 Notice. If Developer neglects, refuses, or fails to fulfill or timely complete any obligation, term, or condition of this Agreement, or if City determines there is a violation of any federal, state, or local law, ordinance, regulation, code, standard, or other requirement, City may at any time thereafter declare Developer to be in default or violation of this Agreement and make written demand upon Developer or its surety, or both, to immediately remedy the default or violation ("Notice"). Developer shall substantially commence the work required to remedy the default or violation within ten (10) days of the Notice. If the default or violation constitutes an immediate threat to the public health, safety, or welfare, City may provide the Notice verbally, and Developer shall substantially commence the required work within twenty-four (24) hours thereof Immediately upon City's issuance of the Notice, Developer and its surety shall be liable to City for all costs of construction and installation of the Public Improvements and all other administrative costs expenses as provided for in Section 10.0 of this Agreement. 9.2 Failure to Remedy; City Action. If the work required to remedy the noticed default or violation is not diligently prosecuted to a completion acceptable to City within the time frame contained in the Notice, City may complete all remaining work, arrange for the completion of all remaining work, and/or conduct such remedial activity as in its sole and absolute discretion it believes is required to remedy the default or violation. All such work or remedial activity shall be at the sole and absolute cost, expense, and liability of Developer and its surety, without the necessity of giving any further notice to Developer or surety. City's right to take such actions shall in no way be limited by the fact that Developer or its surety may have constructed any, or none of the required or agreed upon Public Improvements at the time of City's demand for performance. In the event City elects to complete or arrange for completion of the remaining work and improvements, City may require all work by Developer or its surety to cease in order to allow adequate coordination by City. Notwithstanding the foregoing, if conditions precedent for reversion to acreage can be met and if the interests of City will not be prejudiced thereby, City may also process a reversion to acreage and thereafter recover from Developer or its surety the full cost and expense incurred. 9.3 Other Remedies. No action by City pursuant to Section 9.0 et seq. of this Agreement shall prohibit City from exercising any other right or pursuing any other legal or equitable remedy available under this Agreement or any federal, state, or local law. City may exercise it rights and remedies independently or cumulatively, and City may pursue inconsistent remedies. City may institute an action for damages, injunctive relief, or specific performance. ORANGE\MMARTINEZ\33457. 16 10.0 Administrative Costs. If Developer fails to construct and install all or any part of the Public Improvements within the time required by this Agreement, or if Developer fails to comply with any other obligation contained herein, Developer and its surety shall be jointly and severally liable to City for all administrative expenses, fees, and costs, including reasonable attorney's fees and costs, incurred in obtaining compliance with this Agreement or in processing any legal action or for any other remedies permitted by law. 11.0 Acceptance of Improvements; As-Built or Record Drawings. If the Public Improvements are properly completed by Developer and approved by the City Engineer, and if they comply with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other requirements, the City Council shall be authorized to accept the Public Improvements. The City Council may, in its sole and absolute discretion, accept fully completed portions of the Public Improvements prior to such time as all of the Public Improvements are complete, which shall not release or modify Developer's obligation to complete the remainder of the Public Improvements within the time required by this Agreement. Upon the total or partial acceptance of the Public Improvements by City, Developer shall file with the Recorder's Office of the County of Los Angeles a notice of completion for the accepted Public Improvements in accordance with California Civil Code section 3093, at which time the accepted Public Improvements shall become the sole and exclusive property of City without payment therefor. If Tract No. 63336-2 was approved and recorded as a single phase map, City shall not accept any one or more of the improvements until all of the Public Improvements are completed by Developer and approved by City. Issuance by City of occupancy permits for any buildings or structures located on the Property shall not be construed in any manner to constitute City's acceptance or approval of any Public Improvements. Notwithstanding the foregoing, City may not accept any Public Improvements unless and until Developer provides one (1) set of"as-built" or record drawings or plans to the City Engineer for all such Public Improvements. The drawings shall be certified and shall reflect the condition of the Public Improvements as constructed, with all changes incorporated therein. 12.0 Warranty and Guarantee. Developer hereby warrants and guarantees all Public Improvements against any defective work or labor done, or defective materials furnished in the performance of this Agreement, including the maintenance of all landscaping within the Property in a vigorous and thriving condition reasonably acceptable to City, for a period of one (1) year following completion of the work and acceptance by City ("Warranty"). During the Warranty, Developer shall repair, replace, or reconstruct any defective or otherwise unsatisfactory portion of the Public Improvements, in accordance with the current ordinances, resolutions, regulations, codes, standards, or other requirements of City, and to the approval of the City Engineer. All repairs, replacements, or reconstruction during the Warranty shall be at the sole cost, expense, and liability of Developer and its surety. As to any Public Improvements which have been repaired, replaced, or reconstructed during the Warranty, Developer and its surety hereby agree to extend the Warranty for an additional one (1) year period following City's acceptance of the repaired, replaced, or reconstructed Public Improvements. Nothing herein shall relieve Developer from any other liability it may have under federal, state, or local law to repair, replace, or reconstruct any Public Improvement following expiration of the Warranty or any extension thereof. Developer's warranty obligation under this section shall survive the expiration or termination of this Agreement. ORANGE\MXM\21759. 7 13.0 Security; Surety Bonds. Prior to execution of this Agreement, Developer shall provide City with surety bonds in the amounts and under the terms set forth below ("Security"). The amount of the Security shall be based on the City Engineer's approximation of the actual cost to construct the Public Improvements, including the replacement cost for all landscaping ("Estimated Costs"). If City determines, in its sole and absolute discretion, that the Estimated Costs have changed, Developer shall adjust the Security in the amount requested by City. Developer's compliance with this provision (Section 13.0 et seq.) shall in no way limit or modify Developer's indemnification obligation provided in Section 16.0 of this Agreement. 13.1 Performance Bond. To guarantee the faithful performance of the Public Improvements and all the provisions of this Agreement, to protect City if Developer is in default as set forth in Section 8.0 et seq. of this Agreement, and to secure Developer's one-year guarantee and warranty of the Public Improvements, including the maintenance of all landscaping in a vigorous and thriving condition, Developer shall provide City a faithful performance bond in the amount of One Hundred Forty Two Thousand, One Hundred Five Dollars and eighty six cents ($142,105.86), which sum shall be not less than one hundred percent (100%) of the Estimated Costs. The City Council may, in its sole and absolute discretion and upon recommendation of the City Engineer, partially release a portion or portions of the security provided under this section as the Public Improvements are accepted by City, provided that Developer is not in default on any provision of this Agreement or condition of approval for Parcel/Tract No. 63336-2, and the total remaining security is not less than twenty-five percent (25%) of the Estimated Costs. All security provided under this section shall be released at the end of the Warranty period, or any extension thereof as provided in Section 12 of this Agreement, provided that Developer is not in default on any provision of this Agreement or condition of approval for Parcel/Tract No. 63336-2. 13.2 Labor & Material Bond. To secure payment to the contractors, subcontractors, laborers, material men, and other persons furnishing labor, materials, or equipment for performance of the Public Improvements and this Agreement, Developer shall provide City a labor and materials bond in the amount of One Hundred Forty Two Thousand, One Hundred Five Dollars and eighty six cents ($142,105.86), which sum shall not be less than one hundred percent (100%) of the Estimated Costs. The security provided under this section may be released by written authorization of the City Engineer after six (6) months from the date City accepts the final Public Improvements. The amount of such security shall be reduced by the total of all stop notice or mechanic's lien claims of which City is aware, plus an amount equal to twenty percent (20%) of such claims for reimbursement of City's anticipated administrative and legal expenses arising out of such claims. 13.3 Additional Requirements. The surety for any surety bonds provided as Security shall have a current A.M. Best's rating of no less than A:VIII, shall be licensed to do business in California, and shall be satisfactory to City. As part of the obligation secured by the Security and in addition to the face amount of the Security, the Developer or its surety shall ORANGE\MXM\21759. 8 secure the costs and reasonable expenses and fees, including reasonable attorney's fees and costs, incurred by City in enforcing the obligations of this Agreement. The Developer and its surety stipulate and agree that no change, extension of time, alteration, or addition to the terms of this Agreement, the Public Improvements, or the plans and specifications for the Public Improvements shall in any way affect its obligation on the Security. 13.4 Evidence and Incorporation of Security. Evidence of the Security shall be provided on the forms set forth in Exhibit "C," unless other forms are deemed acceptable by the City Engineer and the City Attorney, and when such forms are completed to the satisfaction of City, the forms and evidence of the Security shall be attached hereto as Exhibit "C" and incorporated herein by this reference. 14.0 Monument Security. Prior to City's execution of this Agreement, to guarantee payment to the engineer or surveyor for the setting of all subdivision boundaries, lot corners, and street centerline monuments for Parcel/Tract No. 63336-2 in compliance with the applicable provisions of City's Municipal and/or Development Code ("Subdivision Monuments"), Developer shall deposit cash with City in the amount of Ten Thousand Dollars ($10,000.00), which sum shall not be less than one hundred percent (100%) of the costs of setting the Subdivision Monuments as determined by the City Engineer. Said cash deposit may be released by written authorization of the City Engineer after all required Subdivision Monuments are accepted by the City Engineer, City has received written acknowledgment of payment in full from the engineer or surveyor who set the Subdivision Monuments, and provided Developer is not in default of any provision of this Agreement or condition of approval for Parcel/Tract No. 63336-2. 15.0 Lien. To secure the timely performance of Developer's obligations under this Agreement, including those obligations for which security has been provided pursuant to Sections 13 et seg. and 14 of this Agreement, Developer hereby creates in favor of City a lien against all portions of the Property not dedicated to City or some other governmental agency for a public purpose. As to Developer's default on those obligations for which security has been provided pursuant to Sections 13 et seq. and 14 of this Agreement, City shall first attempt to collect against such security prior to exercising its rights as a contract lienholder under this section. 16.0 Indemnification. Developer shall defend, indemnify, and hold harmless City, its elected officials, officers, employees, and agents from any and all actual or alleged claims, demands, causes of action, liability, loss, damage, or injury, to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state, or local governmental body or agency, arising out of or incident to any acts, omissions, negligence, or willful misconduct of Developer, its personnel, employees, agents, or contractors in connection with or arising out of construction or maintenance of the Public Improvements, or performance of this Agreement. This indemnification includes, without limitation, the payment of all penalties, fines,judgments, awards, decrees, attorneys fees, and related costs or expenses, and the reimbursement of City, its elected officials, officers, employees, and/or agents for all legal expenses and costs incurred by each of them. This indemnification excludes only such portion of any claim, demand, cause of action, liability, loss, damage, penalty, fine, or injury, to property or persons, including wrongful death, which is caused solely and exclusively by the ORANGE\MMARTINEZ\33457. 19 negligence or willful misconduct of Agency as determined by a court or administrative body of competent jurisdiction. Developer's obligation to indemnify shall survive the expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, officers, employees, or agents. 17.0 Insurance. 17.1 Types; Amounts. Developer shall procure and maintain, and shall require its contractors to procure and maintain, during construction of any Public Improvement pursuant to this Agreement, insurance of the types and in the amounts described below ("Required Insurance"). If any of the Required Insurance contains a general aggregate limit, such insurance shall apply separately to this Agreement or be no less than two times the specified occurrence limit. 17.1.1 General Liability. Developer and its contractors shall procure and maintain occurrence version general liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence for bodily injury, personal injury, and property damage. 17.1.2 Business Automobile Liability. Developer and its contractors shall procure and maintain business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for the ownership, operation, maintenance, use, loading, or unloading of any vehicle owned, leased, hired, or borrowed by the insured or for which the insured is responsible. 17.1.3 Workers' Compensation. Developer and its contractors shall procure and maintain workers' compensation insurance with limits as required by the Labor Code of the State of California and employers' liability insurance with limits of not less than $1,000,000 per occurrence, at all times during which insured retains employees. 17.1.4 Professional Liability. For any consultant or other professional who will engineer or design the Public Improvements, liability insurance for errors and omissions with limits not less than $1,000,000 per occurrence, shall be procured and maintained for a period of five (5) years following completion of the Public Improvements. Such insurance shall be endorsed to include contractual liability. 17.2 Deductibles. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: (a) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its elected officials, officers, employees, agents, and volunteers; or (b) Developer and its contractors shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses. 17.3 Additional Insured; Separation of Insureds. The Required Insurance shall name City, its elected officials, officers, employees, agents, and volunteers as additional insureds with respect to work performed by or on behalf of Developer or its contractors, including materials, parts, or equipment furnished in connection therewith. The Required Insurance shall ORANGE\MMARTINEZ13345 7. 110 contain standard separation of insureds provisions, and shall contain no special limitations on the scope of its protection to City, its elected officials, officers, employees, agents, and volunteers. 17.4 Primary Insurance; Waiver of Subrogation. The Required Insurance shall be primary with respect to any insurance or self-insurance programs covering City, its elected officials, officers, employees, agents, and volunteers. All policies for the Required Insurance shall provide that the insurance company waives all right of recovery by way of subrogation against City in connection with any damage or harm covered by such policy. 17.5 Certificates; Verification. Developer and its contractors shall furnish City with original certificates of insurance and endorsements effecting coverage for the Required Insurance. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by City before work pursuant to this Agreement can begin. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 17.6 Term; Cancellation Notice. Developer and its contractors shall maintain the Required Insurance for the term of this Agreement and shall replace any certificate, policy, or endorsement which will expire prior to that date. All policies shall be endorsed to provide that the Required Insurance shall not be suspended, voided, reduced, canceled, or allowed to expire except on 30 days prior written notice to City. 17.7 Insurer Rating. Unless approved in writing by City, all Required Insurance shall placed with insurers licensed to do business in the State of California and with a current A.M. Best rating of at least A:VIII. 18.0 Signs and Advertising. Developer understands and agrees to City's ordinances, regulations, and requirements governing signs and advertising structures. Developer hereby agrees with and consents to the removal by City of all signs or other advertising structures erected, placed, or situated in violation of any City ordinance, regulation, or other requirement. Removal shall be at the expense of Developer and its surety. Developer and its surety shall indemnify and hold City free and harmless from any claim or demand arising out of or incident to signs, advertising structures, or their removal. 19.0 Relationship Between the Parties. The Parties hereby mutually agree that neither this Agreement, any map related to Parcel/Tract No. 63336-2, nor any other related entitlement, permit, or approval issued by City for the Property shall operate to create the relationship of partnership,joint venture, or agency between City and Developer. Developer's contractors and subcontractors are exclusively and solely under the control and dominion of Developer. Nothing herein shall be deemed to make Developer or its contractors an agent or contractor of City. 20.0 General Provisions. 20.1 Authority to Enter Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority make this Agreement and bind each respective Party. ORANGE\MMARTINEZ\33457. 1 1 l 20.2 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement. 20.3 Construction; References; Captions. It being agreed the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days, or period for performance shall be deemed calendar days and not work days. All references to Developer include all personnel, employees, agents, and subcontractors of Developer, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 20.4 Notices. All notices, demands, invoices, and written communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice: CITY: DEVELOPER: City of Azusa KB HOME Coastal Inc. P.O. Box 1395 36310 Inland Valley Drive 213 E. Foothill Blvd. Wildomar, CA 92595 Azusa, Ca. 91702 Attn: City Manager Attn: Allen Barrett Depending upon the method of transmittal, notice shall be deemed received as follows: by facsimile, as of the date and time sent; by messenger, as of the date delivered; and by U.S. Mail first class postage prepaid, as of 72 hours after deposit in the U.S. Mail. 20.5 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 20.6 Waiver. City's failure to insist upon strict compliance with any provision of this Agreement or to exercise any right or privilege provided herein, or City's waiver of any breach of this Agreement, shall not relieve Developer of any of its obligations under this Agreement, whether of the same or similar type. The foregoing shall be true whether City's actions are intentional or unintentional. Developer agrees to waive, as a defense, counterclaim or set off, any and all defects, irregularities or deficiencies in the authorization, execution or performance of the Public Improvements or this Agreement, as well as the laws, rules, regulations, ordinances or resolutions of City with regards to the authorization, execution or performance of the Public Improvements or this Agreement. 20.7 Assignment or Transfer of Agreement. Developer shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without prior written consent of City. Any attempt to do so shall be null and void, and any assignee, hypothecatee, or transferee shall acquire no right or interest by reason of such ORANGE\MMARTINEZ\33457. 112 attempted assignment, hypothecation, or transfer. Unless specifically stated to the contrary in City's written consent, any assignment, hypothecation, or transfer shall not release or discharge Developer from any duty or responsibility under this Agreement. 20.8 Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation. 20.9 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 20.10 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 20.11 Consent to Jurisdiction and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties' activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of Los Angeles, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other court or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a party to the action or proceeding, or that a federal right or question is involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, Developer expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure Section 394. 20.12 Attorneys' Fees and Costs. If any arbitration, lawsuit, or other legal action or proceeding is brought by one Party against the other Party in connection with this Agreement or the Property, the prevailing party, whether by final judgment or arbitration award, shall be entitled to and recover from the other party all costs and expenses incurred by the prevailing party, including actual attorneys' fees ("Costs"). Any judgment, order, or award entered in such legal action or proceeding shall contain a specific provision providing for the recovery of Costs, which shall include, without limitation, attorneys' and experts' fees, costs and expenses incurred in the following: (a) post judgment motions and appeals, (b) contempt proceedings, (c) garnishment, levy, and debtor and third party examination, (d) discovery, and (e) bankruptcy litigation. This section shall survive the termination or expiration of this Agreement. 20.13 Counterparts. This Agreement may be executed in counterpart originals, which taken together, shall constitute one and the same instrume-''. CITY OF AZUSA KB HO E OASTAL I. . By: By: (signature) (signature) Michael H. Freeman, Jr. (print name) (print name) ORANGE\MMART NEZ\33457. 113 City Manager (title) City of Azusa ATTEST: By: By: (signature) (signature) (print name) (print name) City Clerk City of Azusa (title) NOTE: DEVELOPER'S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER'S BUSINESS ENTITY. ORANGE\MMARTINEZ\33457. 114 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside j On May 23, 2011 before me, Richard R. Keller, Notary Public, personally appeared Michael H. Freeman, Jr., 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/shc/they executed the same in his/her/their authorized capacity(ics), 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. RICHARD R. KELLER Commission # 1918708 aii �!.5. Notary Public -California f.z4, Riverside County " "`" My Comm. Expires Jan 21,20A z -�.. /:2--- /7/1:// �__ _ _ __- _ _ _ - — _ - _ Richard R. Keller (SEAL) CAPACITY CLAIMED BY SIGNER: Individual(s) Corporate Officer(s) Partner(s) Attorney-in-Fact Trustee(s) Subscribing Witness Guardian/Conservator Other SIGNER IS REPRESENTING: NAME OF PERSON(S)OR ENTITY(IES) STATE OF CALIFORNIA } } COUNTY OF } On , 200 , before me, , the undersigned notary public, personally appeared , - personally known to me OR—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. WITNESS my hand and official seal. Signature of Notary ORANGE\MMARTINEZ\33457. 1 l 6 BOND NO. 72BSBGA3951 INITIAL PREMIUM: $2,132.00/2 years SUBJECT TO RENEWAL CITY OF AZUSA PARCEL/TRACT MAP NO. 63336-2 IMPROVEMENTS PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: WHEREAS the City of Azusa, California ("City") and KB HOME Coastal Inc., a California corporation ("Principal"), have executed an agreement for work consisting of, but not limited to, the furnishing all labor, materials, tools, equipment, services, and incidentals for all grading, roads, paving, curbs and gutters, pathways, storm drains, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities for Parcel/Tract Map No. 63336-2 ("Public Improvements"); WHEREAS, the Public Improvements to be performed by Principal are more particularly set forth in that certain Agreement for Completion of Pubic Improvements dated /llLY ,t5-14 , 020/l ("Improvement Agreement"); WHEREAS, the Improvement Agreement is hereby referred to and incorporated herein by reference; and WHEREAS, Principal is required by the Improvement Agreement to provide a good and sufficient bond for performance of the Improvement Agreement, and to guarantee and warranty the Public Improvements constructed thereunder. NOW, THEREFORE, Principal and Hartford Fire Insurance Company ("Surety"), a corporation organized and existing under the laws of the State of Connecticut , and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto City in the sum of One Hundred** dollars ($142,105.86 ), said sum being not less than one hundred percent (100%) of the total cost of the Public Improvements as set forth in the Improvement Agreement, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. "Forty Two Thousand One Hundred Five and 86/100ths THE CONDITION OF THIS OBLIGATION is such, that if Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, agreements, guarantees, and warranties in the Improvement Agreement and any alteration thereof made as therein provided, to be kept and performed at the time and in the manner therein specified and in all respects according to their intent and meaning, and to indemnify and save harmless City, its officers, ORANGE .i.IARTINEZU34 7 120 employees, and agents, as stipulated in the Improvement Agreement, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As part of the obligation secured hereby, and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to any plans, profiles, and specifications related thereto, or to the Public Improvements to be constructed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition. This bond is executed and filed to comply with Section 66499 e1 seg. of the Government Code of California as security for performance of the Improvement Agreement and security for the one-year guarantee and warranty of the Public Improvements. IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at Los Angeles. California , this 25th day of May , 2011 KBHOM O• STALINC., _ Hartford Fire Insurance Company California"corporation Surety By: By: f 'P Land & Forward Tanning Attorney-in-Fact Michael H. Freeman. Jr. Natalie K. Trofimoff (print name) (print name) NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION BY PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING COMPANY MUST BE ATTACHED TO THIS BOND. ORr,:NGE',MMARrINEZ\34S' 12I CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Los Angeles On' MAY 2 5 2011 before me, Daravy Mady, Notary Public personally appeared, Natalie K. Trofimoff who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. _ I y DAR_AVY_ MAR_Y WITNESS my hand and official seal. �� COMM. H1-Ca912 z � �� _i •;•, Notary Public-California o z 'r . I Los Angeles County • M Comm.Ex.ires Mar.9 2013 ' �-C Notary Public Seal SIGNATURE 0 NOTARY OPTIONAL Though the data below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. DESCRIPTION OF ATTACHED DOCUMENT: TITLE OR TYPE OF DOCUMENT: NUMBER OF PAGES: DOCUMENT DATE: CAPACITY(IES) CLAIMED BY SIGNER(S) Signer's Name: Signer's Name ❑ INDIVIDUAL INDIVIDUAL CORPORATE OFFICER CORPORATE OFFICER Title(s) Title(s) PARTNER(S)E LIMITED ❑ GENERAL PARTNER(S) LIMITED GENERAL E ATTORNEY-IN-FACT - ATTORNEY-IN-FACT ❑ TRUSTEE(S) - TRUSTEE(S) - GUARDIAN/CONSERVATOR GUARDIAN/CONSERVATOR ❑ OTHER: ❑ OTHER: Signer is representing: Signer is representing: NAME OF PERSON(S)OR ENTITY(IES) NAME OF PERSON(S)OR ENTITY(IES) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside On June 10, 2011 before me, Richard R. Keller, Notary Public, personally appeared Michael H. Freeman, Jr., who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/aye subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/hcr/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. RICHARD R. KELLER Commission # 1918708 & -ri�E✓.d� Notary Public -California z Riverside County _ _ My Comm Expires Jan 21.2015[ Richard R. Keller (SEAL) Direct Inquiries/Claims to: POWER OF ATTORNE Y BOND,T-4 P O. BOX 2101 690 ASYLUM AVENUE HARTFORD,CONNECTICUT 06115 call:888-266-3488 or fax:860-757.5835 KNOW ALL PERSONS BY THESE PRESENTS THAT: Agency Code: 72-254827 X Hartford Firs Insurance Company.a corporation duly organized under the laws of the State of Connecticut X Hartford Casualty Insurance Company, a corporation duly organised under the laws of the State of Indiana X Hartford Accident and Indemnity Company. a corporation duly organized under the taws of the State of Connecticut Hartford Underwriters Insurance Company,a corporation July organized under the laws of the State of Connecticut Twin City Fire Insurance Company,a corporation duly organized under the Laws of the State of Indiana Hartford Insurance Company of Illinois,a corporation duly organized under the laws of the State of Illinois Hartford Insurance Company of the Midwest,a corporation duly organized under the laws of the State of Indiana Hartford Insurance Company of the Southeast,a corporation duly organized under the laws of the State of Florida having their home office in Hartford, Connecticut, (hereinafter collectively referred to as the 'Companies')do hereby make, constitute and appoint, up to the amount of unlimited: Jeffrey Strassner, Christina Johnson. Cesar F. Javier, Knstine Mendez, Natalie K. Trolimoff, Shanna E. Judson, Patricia Talavera, Tenzer V. Cunningham of Los Angeles, CA their true and lawful Attorney(s)-in-Fact, each in their separate capacity if more than one is named above, to sign its name as surety(ies)only as delineated above by ®, and to execute, seal and acknowledge any and all bonds, undertakings, contracts and other written instruments in the nature thereof, on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law. In Witness Whereof, and as authorized by a Resolution of the Board of Directors of the Companies on January 22, 2004 the Companies have caused these presents to be signed by its Assistant Vice President and its corporate seals to be hereto affixed, duly attested by its Assistant Secretary. Further, pursuant to Resolution of the Board of Directors of the Companies, the Companies hereby unambiguously affirm that they are and will be bound by any mechanically applied signatures applied to this Power of Attorney. CD , "1,1. tio.., ?, #11.7.4* S �ri..r.rr... • horst* N 1 • 7 • j- .r 1 • J l/ 2 1/, Paul A. Bergenholtz,Assistant Secretary M. Ross Fisher.Assistant Vice President STATE OF CONNECTICUT } ss. Hartford COUNTY OF HARTFORD ) On this 1"day of February, 2004. before me personally came M. Ross Fisher, to me known, who being by me duly sworn,did depose and say that he resides in the County of Hartford. State of Connecticut; that he is the Assistant Vice President of the Companies, the corporations described in and which executed the above instrument; that he knows the seals of the said corporations; that the seals affixed to the said instrument are such corporate seals, that they were so affixed by authority of the Boards of Directors of said corporations and that he signed his name thereto by like authonty. ,rte� • ' /. •��11�t�fIl N.'.11 h I'i.ek• \,nab i'nhIe CERICICAIE I.I•,nnF.pan l ii„i,cr 11 'r•I' i, the undersigned. Assistant Vice President of the Companies. DO HEREBY CERTIFY that the .above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies. shich is still in full force effective as of Signed and sealed at the City of Hartford. MAY 2 5 2011 � cera _ • r .NN•rMryL, . to/f • 00.7% i 'i ` t+rJ ;;r.u.ra... ;• tie✓ t' /tilt) t!1• �!l :\ • L Jry 'i/ Slumper ASSIStant Vice President BOND NO. 72BSBGA3951 INITIAL PREMIUM: incl. w/performance SUBJECT TO RENEWAL CITY OF AZUSA PARCEL/TRACT MAP IMPROVEMENTS LABOR AND MATERIAL BOND KNOW ALL MEN BY THESE PRESENTS: WHEREAS the City of Azusa, California ("City") and KB HOME Coastal Inc., a California corporation ("Principal"), have executed an agreement for work consisting of, but not limited to, the furnishing all labor, materials, tools, equipment, services, and incidentals for all grading, roads, paving, curbs and gutters, pathways, storm drains, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities for Parcel/Tract Map No. 63336-2 ("Public Improvements"); WHEREAS, the Public Improvements to be performed by Principal are more particularly set forth in that certain Agreement for Completion of Pubic Improvements dated May /f/M , IA!! ("Improvement Agreement"); WHEREAS, the Improvement Agreement is hereby referred to and incorporated herein by reference; and WHEREAS, Principal is required to furnish a bond in connection with the Improvement Agreement providing that if Principal or any of its subcontractors shall fail to pay for any materials, provisions, or other supplies, or terms used in, upon, for, or about the performance of the Public Improvements, or for any work or labor done thereon of any kind, or for amounts due under the provisions of Title 15 (commencing with section 3082) of Part 4 of Division 3 of the California Civil Code, with respect to such work or labor, that the Surety on this bond will pay the same together with a reasonable attorney's fee in case suit is brought on the bond. NOW, THEREFORE, Principal and Hartford Fire Insurance Company'Surety"), a corporation organized and existing under the laws of the State of Connecticut and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto City and to any and all material men, persons, companies or corporations furnishing materials, provisions, and other supplies used in, upon, for or about the performance of the Public Improvements, and all persons, companies or corporations renting or hiring teams, or implements or machinery, for or contributing to the Public Improvements to be done, and all persons performing work or labor upon the same and all persons supplying both work and materials as aforesaid excepting the Principal, the sum of One Hundred Forty*** DOLLARS, ORANCiEW MARTINEZJ345 7 122 "'Two Thousand One Hundred Five and 86/100ths (S142,105.86 ), said sum being not less than 100% of the total cost of the Public Improvements under the terms of the Improvement Agreement, we bind ourselves, our heirs, executors and administrators, successors and assigns jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal, his or its subcontractors, heirs, executors, administrators, successors, or assigns, shall fail to pay for any materials, provisions, or other supplies or machinery used in, upon, for or about the performance of the Public Improvements, or for work or labor thereon of any kind, or fail to pay any of the persons named in California Civil Code Section 3181, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and his subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, and all other applicable laws of the State of California and rules and regulations of its agencies, then said Surety will pay the same in or to an amount not exceeding the sum specified herein. As part of the obligation secured hereby, and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. This bond is executed and filed to comply with Section 66499 et seg. of the California Government Code as security for payment to contractors, subcontractors, and persons furnishing labor, materials, or equipment for construction of the Public Improvements or performance of the Improvement Agreement. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the California Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to any plans, profiles, and specifications related thereto, or to the Public Improvements to be constructed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition. ORA NGE1N1N1ART?NEZ',33-157 123 IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at Los Angeles, California , this 25th day of May , 2011 . KB HOME COASTAL INC., a Hartford Fi e I surance Company California corporati nSurety By: _ By: , . C1, i VP Land & Forward PI ni' ning Attorney-in-Fact Michael H. Freeman, Jr. Natalie K. Trofimoff (print name) (print name) NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION BY PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING COMPANY MUST BE ATTACHED TO THIS BOND. ORANGE\MMARTNEZ'J3457. i24 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Los Angeles On MAY 2 6 2011 before me, Daravy Madv, Notary Public personally appeared, Natalie K. Trofimoff who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. DARAVY MADY WITNESS my hand and official seal. o •. COMM.#1839912 Z tNotary Public-California o zr ' Los Angeles County M Comm.Ex.ires Mar.9,2013 Notary Public Seal SIGNATURE • NOTARY OPTIONAL Though the data below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. DESCRIPTION OF ATTACHED DOCUMENT: TITLE OR TYPE OF DOCUMENT: NUMBER OF PAGES: DOCUMENT DATE: CAPACITY(IES) CLAIMED BY SIGNER(S) Signer's Name: Signer's Name ❑ INDIVIDUAL nINDIVIDUAL CORPORATE OFFICER _CORPORATE OFFICER Title(s) Title(s) ❑ PARTNER(S)— LIMITED ❑ GENERAL ❑ PARTNER(S)❑ LIMITED ❑ GENERAL ATTORNEY-IN-FACT ❑ ATTORNEY-IN-FACT TRUSTEE(S) n TRUSTEE(S) GUARDIAN/CONSERVATOR ❑ GUARDIAN/CONSERVATOR OTHER: OTHER: Signer is representing: Signer is representing: NAME OF PERSON(S)OR ENTITY(IES) NAME OF PERSON(S)OR ENTITY(IES) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside On June 10, 2011 before me, Richard R. Keller, Notary Public, personally appeared Michael H. Freeman, Jr., who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/arc 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. RICHARD R. KELLER i, Commission # 1918708 z' Fx I Notary Public -California z Riverside County My Comm. Expires Jan 21, 2015 j/Z__-014/ Richard R. Keller (SEAL) Direct Inquiries/Claims to: HE POWER OF ATTORNEY Paeo 2103,690DASy�ORDUM ENUE HARTFORD,CONNECTICUT 06115 call:888-I66-3488 or lax:860-757.5835 KNOW ALL PERSONS BY THESE PRESENTS THAT: Agency Codi: 72-254827 I X Hartford Fire Insurance Company,a corporation duly organo tl under the laws of the State of Connecticut X Hartford Casualty Insurance Company,a corporation duly org:miaed under the laws of-the State of Indiana I X Hartford Accident and Indemnity Company.a corporation duly organi,ed under the laws of the Stare of Connecticut rHartford Underwriters Insurance Company,a corporation duly organised under the laws of the State of Connecticut Twin City Fire Insurance Company.a corporation duly organieed under the laws of the Stare of Indiana Hartford Insurance Company of Illinois,a corporation duly organved under the laws of the State of Illinois Hartford Insurance Company of the Midwest,a corporation duly organised under the laws of the Stam of Indiana Hartford Insurance Company of the Southeast,a corporation duly organised under the laws of the Slate of Florida having their home office in Hartford,Connecticut,(hereinafter collectively referred to as the'Companies')do hereby make,constitute and appoint. up to the amount o/unlimited: Jeffrey Strassner,Christina Johnson,Cesar F.Javier,Knstine Mendez,Natalie K. Tmfimoff, Shanna E.Judson,Patricia Talavera, Tenzer V.Cunningham of • Los Angeles,CA their true and lawful Attorney(s)-in-Fact,each in(heir separate capacity if more than one is named above,to sign its name as surery(ies)only as delineated above by®.and to execute.seal and acknowledge any and all bonds,undertakings,contracts and other written instruments in the nature thereof,on behalf of the Companies in their business of guaranteeing the fidelity of persons,guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law. In Witness Whereof,and as authorized by a Resolution of the Board of Directors of the Companies on January 22.2004 the Companies have caused these presents to be signed by its Assistant Vice President and its corporate seals to be hereto affixed,duly attested by its Assistant Secretary. Further,pursuant to Resolution of the Board of Directors of the Companies,the Companies hereby unambiguously affirm that they are and will be bound by any mechanically applied signatures applied to this Power of Attorney. e 6- 3 Paul A.Bergenholtz,Assistant Secretary M.Ross Fisher,Assistant Vice President STATE OF CONNECTICUT ss. Hartford COUNTY OF HARTFORD On this 1"day of February,2004,before me personally came M.Ross Fisher,to me known,who being by me duly sworn,did depose and say that he resides in the County of Hartford.State of Connecticut;that he is the Assistant Vice President of the Companies,the corporations described in and which executed the above instrument: that he knows the seals of the said corporations; that the seals affixed to the said instrument are such corporate seals:that they were so affixed by authority of the Boards of Directors of said corporations and that he signed his name thereto by like authority. r� �".t.►�S . +i F 1 1rka ...♦1•i�lic CENIFICatE NI, ,,,,,.-..n hi.yor ,,,hr. I.ire undersigned.Assistant Vice President of the Companies,DO HEREBY CERTIFY that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies,Which is still in full force effective as of So1ned and sealed at the City of Hartford. 44-44-'') I �� 1 \ iii +•e�,. f 'OP?. ; e ny `r ✓ Ilate StuinCer.Assistant Vice President KB HOME CERTIFICATE OF SECRETARY KB HOME COASTAL INC. [SOUTHERN CALIFORNIA DIVISION] I, Tony Richelieu, do hereby certify that I am the duly elected, qualified and acting Secretary of KB HOME Coastal Inc., a California corporation [Southern California Division, f/k/a Southern California/Coastal Division] (this "Corporation"). I do further certify that the resolutions attached hereto as Exhibit "A" are a true and complete representation of such resolutions that were duly adopted by the unanimous written consent of the Board of Directors of this Corporation as of June 9, 2010, and that said resolutions have not been rescinded, modified or revoked, and are in full force and effect. WITNESS MY HAND this 9th day of June, 2010. By:. Toy Richelieu Secretary EXHIBIT"A" KB HOME COASTAL INC. [SOUTHERN CALIFORNIA DIVISION] RESOLUTIONS ADOPTED AS OF JUNE 9,2010 Signing Authority—Southern California Division RESOLVED . . ., that the following resolutions shall supersede and replace any and all resolutions previously adopted with respect to the powers and authority herein granted including, but not limited to,resolutions adopted as of March 18,2009,and any such prior authority is hereby revoked and restated in its entirety as follows: RESOLVED FURTHER,that the following officers and/or employees of this Corporation be, and each hereby is, authorized to act on behalf of this Corporation; provided,however,that such authority shall be limited to such authority as may be provided herein below and to other ordinary course of business transactions relating to the operations of this Corporation as indicated herein below: Stephen J. Ruffner President James D. Widner Executive Vice President [Regional President] Thomas DiPrima Executive Vice President John P.Fenn Senior Vice President,Operations Eric Hoffman Senior Vice President, Land Bruce Tripp Senior Vice President, Land Acquisition Michael H. Freeman,Jr. Vice President, Land and Forward Planning Michael J.Gartlan Vice President, Finance Daniel C. Loth Vice President, Sales and Marketing Eric Weitz Vice President,Land Acquisition John Abboud Director,DUP and Assistant Secretary Eric Scheck Senior Project Manager Allen Barrett Senior Project.Manager Ron Mertzel Manager, Land Acquisition and Planning Scott Hansen Project Manager Richard Keller Escrow Manager Bob Kronenfeld Director,Marketing Sonia Pena Director of Sales Matt Rizzo Senior Manager, Finance RESOLVED FURTHER,that any of the following persons,acting alone be,and each hereby is,authorized and empowered for and on behalf and in the name of this Corporation and any Corporation Entity(which,for these purposes is(a)any limited liability company in which this Corporation is the sole member and(b)any partnership in which this Corporation is the general partner),to execute,acknowledge and deliver any and all documents deemed by such person to be necessary or appropriate in connection with the acquisition and/or disposition of bulk parcels of real property by this Corporation or any Corporation Entity,including,but not limited to,land purchase and sale agreements,purchase and sale of residential dwellings and lots,amendments, assignments,escrow instructions,grant deeds,promissory notes,deeds of trust,maps, agreements and related documents: Stephen J.Ruffner James D.Widner RESOLVED FURTHER,that the signature of the President or any Executive Vice President of this Corporation is required on any and all disbursements in excess of $1,000 for non-contract items that are executed and delivered for and on behalf of this Corporation. RESOLVED FURTHER,that any one of the following persons,acting alone,be, and each hereby is,authorized and empowered to sign,execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity,any and all documents deemed by such person necessary or appropriate in connection with this Corporation's or any Corporation Entity's(a)land improvement and construction activities,including,but not limited to,purchase orders and subcontracts for labor and materials;and(b)land improvement and development activities including but not limited to,easements,development agreements,applications for land development approvals, option agreements,subdivision approvals,declarations of covenants,conditions and restrictions,and any other submissions required to be filed with the California Department of Real Estate("DRE"),subdivision and tract maps and exhibits thereto, applications and submissions to obtain preliminary and final subdivision public reports and supporting documents: Allen Barrett John P.Fenn Michael H.Freeman,Jr. Michael J.Gartlan Scott Hansen Stephen J.Ruffner Eric Scheck Eric Weitz James D.Widner Thomas DiPrima Eric Hoffman Ron Mertzel Bruce Tripp RESOLVED FURTHER,that any one of the following persons,acting alone,be, and each hereby is,authorized to sign,execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity,any and all documents required in connection with this Corporation's or any Corporation Entity's development of real property including,but not limited to,improvement bonds,subdivision improvement agreements,subdivision maps,building permit applications and such other documents related to the permit process: Allen Barrett John P.Fenn Michael H.Freeman,Jr. Michael J.Gartlan Scott Hansen Stephen J.Ruffner Eric Scheck Eric Weitz James D.Widner Thomas DiPrima Eric Hoffman Ron Mertzel Bruce Tripp RESOLVED FURTHER,that any one of the following persons,acting alone, be, and each hereby is, authorized to execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity,(a)any and all documents required to be submitted to the DRE in connection with this Corporation's or any Corporation Entity's • preliminary and final subdivision public report process, and to support filings required to be made pursuant to such DRE requirements; (b)utility contracts and(c)applications and other ancillary documents required to obtain city and/or County permits for projects developed by this Corporation or any Corporation Entity: John P.Fenn Michael J. Gartlan Michael H. Freeman,Jr. Stephen J. Ruffner Eric Weitz James D. Widner Thomas DiPrima Eric Hoffman Ron Mertzel Bruce Tripp RESOLVED FURTHER,that any one of the following persons,acting alone, be, and each hereby is, authorized and empowered to execute,acknowledge and deliver for and on behalf and in the name of this Corporation and any Corporation Entity,any and all documents deemed necessary or appropriate(a)to convey title in and to property which comprises the common area in planned residential projects developed by this Corporation or any Corporation Entity to be conveyed to each respective homeowners association and any and all restrictive covenants, conditions and easements and any and all supplemental declarations with respect thereto;(b)in connection with the development of real property by this Corporation or any Corporation Entity; (c)in connection with the permitting processing with respect to such real property developments and(d)to allow the DRE to issue a public report; such documents to include,without limitation, consultant contracts,utility contracts, improvement bonds,subdivision improvement agreements, subdivision maps,tract maps,parcel maps and building permit applications: John P.Fenn Michael J. Gartlan Michael H. Freeman,Jr. Stephen J. Ruffner Eric Weitz James D. Widner Thomas DiPrima Eric Hoffman Ron Mertzel Bruce Tripp RESOLVED FURTHER,that any one of the following persons, acting alone, be, and each hereby is,authorized and empowered for and on behalf and in the name of this Corporation and any Corporation Entity,to take all actions and to execute, deliver, file and record any and all certificates, instruments,agreements and documents as may be required or as such officer may deem necessary,advisable or proper, in connection with the financing of this Corporation's or any Corporation Entity's land improvement and development activities, including the public facilities necessary to serve such development, including,but not limited to,(a)the formation of assessment districts or community facilities districts pursuant to the Mello-Roos Community Facilities Act of 1982,as amended,or any other comparable or similar statute or regulation; (b)authorizing the levy of assessments or special taxes against the real property of this Corporation or any Corporation Entity by any such assessment district or community facilities district; and(c)authorizing the issuance of bonds by any such assessment district or community facilities district secured by a first pledge of the proceeds of the special taxes or assessments levied on the real property of this Corporation or any Corporation Entity: John P. Fenn Michael J. Gartlan Michael H. Freeman,Jr. Stephen J. Ruffner James D. Widner Thomas DiPrima Eric Hoffman RESOLVED FURTHER,that any one of the following persons,acting alone,be, and each hereby is,authorized to sign, execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, any and all documents required in connection with the sale of individual lots to third parties, including,but not limited to, purchase and sale agreements,escrow instructions, notices of completion,warranty/grant deeds,contracts(including amendments,assignments,addendums and other ancillary documents forming a part of the contract), holdback agreements,termite inspection certificates,buyer and seller certificates as required under FHA, VA and other government sponsored loan programs,to effect the sale of such lots to purchasers: John P. Fenn Michael J. Gartlan Matt Rizzo John Abboud Stephen J. Ruffner James D. Widner Thomas DiPrima Eric Hoffman Richard Keller* ;provided,that each person designated by an asterisk is not authorized to sign warranty/grant deeds RESOLVED FURTHER,that any one of the following persons, acting alone,be, and each hereby is, authorized to sign, execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity,any and all master subcontract agreements and related documents and material purchase agreements,subcontract work agreements and related documents with respect to the construction of improvements on real property: Allen Barrett John P. Fenn Michael H.Freeman,Jr. Michael J.Gartlan Stephen J. Ruffner James D. Widner Thomas DiPrima Eric Hoffman RESOLVED FURTHER,that any one of the following persons, acting alone,is authorized and empowered for and on behalf and in the name of this Corporation and any Corporation Entity,to sign, execute and deliver master consultant agreements,purchase orders and subcontracts for labor and materials and related documents with respect to development of real property: Allen Barrett John P.Fenn Michael H.Freeman,Jr. Michael J.Gartlan Stephen J. Ruffner James D.Widner Thomas DiPrima Eric Hoffman Ron Mertzel RESOLVED FURTHER,that any one of the following persons, acting alone,be, and each hereby is,authorized and empowered to sign,execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity,any and all master service agreements,vendor agreements, independent contractor sales agreements and supporting documents with respect to the marketing,sales and management of real property: Bob Kronenfeld Daniel C. Loth John Abboud Sonia Pena RESOLVED FURTHER, that John Abboud acting alone, be, and she hereby is, authorized and empowered to sign, execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, any and all documents required in connection with this Corporation's or any Corporation Entity's customer service and new home warranty activities and other business operations including, but not Iimited to, settlement agreements, purchase orders and subcontracts for labor and materials; RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized and empowered to sign, execute and deliver for and on behalf and in the name of this Corporation and any Corporation Entity, any and all documents establishing bank accounts, financing arrangements and other ordinary course banking and financial arrangements: Michael J. Gartlan Stephen J. Ruffner James D. Widner RESOLVED FURTHER, that any one of the following persons, acting alone, be, and each hereby is, authorized and empowered to act on behalf of this Corporation in its capacity as a member (other than a sole member) of any limited liability company or as a , partner (other than a general partner) of any partnership in which this Corporation owns an interest, directly or indirectly: Stephen J. Ruffner James D. Widner RESOLVED FURTHER, that Stephen J. Ruffner, President of this Corporation and James D. Widner, Executive Vice President [Regional President] of this Corporation be, and each hereby is, authorized, empowered and directed, for and on behalf and in the name of this Corporation and any Corporation Entity, to take such further actions and to do all such further things which each may deem necessary and appropriate to accomplish the purpose and to effectuate the intent of the foregoing resolutions with respect to this Corporation or any Corporation Entity. Storm Water Compliance Representative RESOLVED FURTHER, that Allen Barrett, Senior Project Manager, be, and hereby is, designated as the Corporation's Storm Water Compliance Representative for purposes of the Corporation's compliance with the storm water consent decree entered • on July 23, 2008, and is authorized, empowered and directed to take such actions, prepare and execute such instruments, undertake and perform such inspections and reviews, and to do all such things which he may deem necessary and appropriate to accomplish compliance with the decree and the Corporation's policies, standards and requirements with respect to the decree. RESOLVED FURTHER, that any and all documents executed or actions undertaken by any officers or employees listed in the foregoing resolutions between March 18, 2009 and the date hereof substantively within the scope of their authority as designated above be, and they hereby are, ratified, confirmed and approved. EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY PARCEL/TRACT NO. 63336-2 ORANGE\MMARTINEZ\33457. 117 EXHIBIT"A" DESCRIPTION OF THE LAND THE REAL PROPERTY REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF AZUSA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: LOTS 15, 16, 17 AND"E"OF TRACT NO. 63336-1,IN THE CITY OF AZUSA,COUNTY OF LOS ANGELES,STATE OF CALIFORNIA,AS PER MAP RECORDED IN BOOK 1326 PAGES 63 THROUGH 66, INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM ALL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN,GEOTHERMAL STEAM AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING,THAT MAY BE WITHIN OR UNDER THE LAND,TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING AND OPERATING THEREFOR AND STORING IN AND REMOVING THE SAME FROM SAID LAND OR ANY OTHER LAND,INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN THE LAND, OIL OR GAS WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES WITHOUT, HOWEVER,THE RIGHT TO DRILL,MINE,STORE,EXPLORE OR OPERATE THROUGH THE SURFACE OR THE UPPER 500 FEET OF THE SUBSURFACE OF THE LAND,AS RESERVED BY AZUSA LAND PARTNERS, LLC,A DELAWARE LIMITED LIABILITY COMPANY, IN DEED RECORDED SEPTEMBER 25, 2006 AS INSTRUMENT NO. 06- 2121969,OFFICIAL RECORDS. PARCEL 2: LOTS 1 THROUGH 55 AND"B"THROUGH"H", INCLUSIVE OF TRACT MAP 63336-2 IN THE CITY OF AZUSA,COUNTY OF LOS ANGELES,STATE OF CALIFORNIA,FILED IN BOOK 1340, PAGES 56THROUGH 59, INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN,GEOTHERMAL STEAM AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING,THAT MAY BE WITHIN OR UNDER THE LAND,TOGETHER WITH THE EXHIBIT"A" I11RiliRvl TO GRANT DEED PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING AND OPERATING THEREFOR AND STORING IN AND REMOVING THE SAME FROM SAID LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN THE LAND, OIL OR GAS WELLS, TUNNELS, AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES WITHOUT, HOWEVER, THE RIGHT TO DRILL, MINE STORE, EXPLORE OR OPERATE THROUGH THE SURFACE OR THE UPPER 500 FEET OF THE SUBSURFACE OF THE LAND AS RESERVED BY AZUSA LAND PARTNERS, LLC, A DELAWARE LIMITED LIABILITY COMPANY ON GRANT DEED RECORDED AUGUST 28, 2007 AS INSTRUMENT NO. 07- 2007595, OF OFFICIAL RECORDS. APN: 8625-030-017 AND 8625-030-018 AND 8625-030-019 AND 8625-030-043 AND 8625- 036-056 AND 8625-036-057 AND 8625-036-058 AND 8625-036-059 AND 8625-036-060 AND 8625-036-061 AND 8625-036-062 AND 8625-036-001 AND 8625-036-002 AND 8625- 036-003 AND 8625-036-004 AND 8625-036-005 AND 8625-036-006 AND 8625-036-007 AND 8625-036-008 AND 8625-036-009 AND 8625-036-010 AND 8625-036-011 AND 8625- 036-012 AND 8625-036-013 AND 8625-036-014 AND 8625-036-015 AND 8625-036-016 AND 8625-036-017 AND 8625-036-018 AND 8625-036-019 AND 8625-036-020 AND 8625- 036-021 AND 8625-036-022 AND 8625-036-023 AND 8625-036-024 AND 8625-036-025 AND 8625-036-026 AND 8625-036-027 AND 8625-036-028 AND 8625-036-029 AND 8625- 036-030 AND 8625-036-031 AND 8625-036-032 AND 8625-036-033 AND 8625-036-034 AND 8625-036-035 AND 8625-036-036 AND 8625-036-037 AND 8625-036-038 AND 8625- 036-039 AND 8625-036-040 AND 8625-036-041 AND 8625-036-042 AND 8625-036-043 AND 8625-036-044 AND 8625-036-045 AND 8625-036-046 AND 8625-036-047 AND 8625- 036-048 AND 8625-036-049 AND 8625-036-050 AND 8625-036-051 AND 8625-036-052 AND 8625-036-053 AND 8625-036-054 AND 8625-036-055 1085I38v! -2- EXHIBIT "B" LIST OF PUBLIC IMPROVEMENTS PARCEL/TRACT NO. 63336-2 ORANGEIMMARTINEZ133457. 1 18 Tract 63336-02 Rosedale Total Unit Units Bond Reduced Streets Quantites Price Estimate Amount AC 783.6 $ 55.00 Tons $ 43,098.00 $ 4,309.80 Base 1099.3 $ 40.00 Tons $ 43,972.00 $ 4,397.20 C&G 2815 $ 25.00 LF $ 70,375.00 $ 7,037.50 Street Lights 5 $ 1,500.00 EACH $ 7,500.00 $ 7,500.00 Concrete Pavement $ 5.00 SQ FT $ - $ - Curb Ramps 3 $ 1,500.00 each $ 4,500.00 $ 4,500.00 Sidewalk 9000 $ 3.50 sq ft $ 31,500.00 $ 31,500.00 Misc items 10% $ 20,094.50 $ 5,023.63 total $ 200,945.00 $ 64,268.13 $ 221,039.50 Storm Drains If 18" RCP 32 $ 58.00 If $ 1,856.00 $ 185.60 24"RCP 21 $ 82.00 If $ 1,722.00 $ 172.20 30' RCP $ 110.00 If $ - $ - 36' RCP $ 140.00 If $ - $ _ 42"RCP $ 156.00 If $ - $ - 54" RCP $ 250.00 If $ - $ - 60"RCP $ 300.00 If $ - $ - Other RCP $ 320.00 If $ - $ - Manholes 1 $ 3,000.00 each $ 3,000.00 $ 300.00 Junction Structures $ 1,000.00 each $ - $ - Catch Basins 2 $ 3,500.00 each $ 7,000.00 $ 700.00 Catch Basins/grates $ 4,000.00 each $ - Misc items $ 13,578.00 $ 1,357.80 Sewers 8"VCP 1556 $ 57.00 If $ 88,692.00 $ 8,869.20 10"VCP $ 61.00 If $ - $ - House laterals 55 $ 1,000.00 each $ 55,000.00 $ 5,500.00 12"VCP $ 70.00 If $ - $ - Manholes 8 $ 3,000.00 each $ 24,000.00 $ 2,400.00 Misc items 5% $ 8,384.60 $ 838.46 $ 167,692.00 $ 17,607.66 $ 176,076.60 Water 8"DIP 1615 $ 43.00 If $ 69,445.00 $ 6,944.50 12"DIP $ 60.00 If $ - $ - 16" DIP $ 70.00 If $ - $ - 12"Valves $ 3,000.00 each $ - $ - 8"Valves 7 $ 3,000.00 each $ 21,000.00 $ 2,100.00 Thrust Blocks $ 1,000.00 each $ - $ - Fire Hydrants 4 $ 2,000.00 each $ 8,000.00 $ 800.00 Misc items 5% $ 4,922.25 $ 492.23 $ 98,445.00 $ 10,336.73 $ 103,367.25 Grand Total est $ 514,061.35 $ 93,570.31 Add Fine Grading and site repair $ 30,000.00 Contingency $ 51,406.14 $ 18,535.55 Bond amount $ 565,467.49 $ 142,105.86 EXHIBIT "C" SURETY BONDS AND OTHER SECURITY PARCEL/TRACT NO. 63336-2 As evidence of understanding the provisions contained in this Agreement, and of the Developer's intent to comply with same, the Developer has submitted the below described security in the amounts required by this Agreement, and has affixed the appropriate signatures thereto: PERFORMANCE, BOND,,� PRINCIPAL AMOUNT: $ ,/• /,Z1 /DS• j , Surety: ,414 K�4rc/ /'��'G .rtitua,t,,ncz Ca Attorney-in-fact: A/4.44 //7 . ,('. TYo ?m,,.a Address: Z(ffO A-0(m . de-/tecc__. /fa-r f -1 Co is n cc-f % f DCcHs MATERIAL AND LABOR BOND PRINCIPAL AMOUNT: $ /1ap w_,!. ' 60 Surety ark{rie / re .Via'tx-Via' Ce a . Attorney-in-fact: Q,MQ./i.e. K. to 1 o r Address: ?O 'fJ ht.Art ' ehc[.C_ CASH MONUMENT SECURITY: $ 10,006, 00 Amount deposited per Cash Receipt No. 8.4 5123 Date: 7,44/2.0 l( ORANGE\MMARTINEZ\33457. 119 CONSENT CALENDAR TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: TITO HAES, PUBLIC WORDS DIRECTOR/ASSISTANT CITY MANAGER VIA: F.M. DELACH, CITY MANAGER DATE: JULY 25, 2011 SUBJECT: PROJECT NO. SRTSL-5112(011) — SAFE ROUTES TO SCHOOL PROJECT — TERMINATE AWARD OF CONTRACT TO TSR CONSTRUCTION AND INSPECTION BID AS NONRESPONSIVE, AUTHORIZE STAFF TO AWARD CONTRACT TO MARTINEZ CONCRETE, INC. AND APPROVE A BUDGET AMENDMENT IN THE AMOUNT OF $42,397.00 TO BE FUNDED FROM THE TRANSPORTATION DEVELOPMENT ACT (TDA) FOND RECOMMENDATION It is recommended that the City Council terminate the award of contract to TSR Construction and Inspection bid as nonresponsive, authorize staff to award the Safe Routes to School Project No. SRTSL- 5112(011) to Martinez Concrete, Inc. and approve a budget amendment in the amount of $42,397.00 to be funded from the TDA fund. BACKGROUND On March 21", 2011, the City Council approved the plans and specifications for the project and the Notice of Inviting bids. The bid opening was conducted on May 5`h, 2011 and five bids were received. The following companies and the bid amounts are as follows: No. Company City Bid Amount I TSR. Construction and Inspection Rancho Cucamonga, CA $139,135.00 2 ; Geronimo Concrete, Inc. Los Angeles, CA $156,775.95 3 MCI Azusa, CA $171, 353.20 4 Freeway Electric Inc. Riverside, CA $239, 039.00 ? [ 5 All American. Asphalt _ Corona, CA $247, 000.00 The project was awarded to TSR Construction and Inspection at the June 20, 2011 Council Meeting. During the contract preparation process the final Underutilized Disadvantaged Business Enterprises (UDBE) documents were provided by the contractor, staff determined that Good Faith Efforts failed to comply with the UDBE requirements. The UDBE contract goal established for this project is 6.3%. Information provided by TSR Construction and Inspection indicated they obtained 0/ UDBE participation. Even after award of the project, TSR Construction and Inspection did not demonstrate th ` they actively and aggressively attempted to meet the UDBE contract goal. Because the UDBE contract goal is a requirement of the federal funding used on this project, finalizing the contract with TSR Construction and Inspection may result in loss of federal funding. As a result, TSR Construction and Inspection's is not able to honor the requirements of the contract and the award should therefore be terminated, bid is deemed nonresponsive. The next lowest bidder, Geronimo Concrete, Inc. has declined the opportunity to participate in this project due to other contract obligations. Therefore, the third lowest bidder has been selected for the project. Martinez Concrete, Inc. has sufficiently satisfied the UDBE requirements. Staff is requesting the City Council deem TSR Construction and Inspection. as a non-responsive bidder and award the project to Martinez Concrete, Inc. Staff' has discussed. the project with Martinez Concrete, Inc. and if the Council awards the contract by July 25, 2011, the project can be completed prior to the beginning of the school year. FISCAL IMPACT: The actual project cost is $188,489.00, including 1.0% allowance for potential change orders. The original SRTS federal grant amount was $102,713.00. Because the bids carne in above the original amount, staff requested additional funds from SRTS. The SRTS program granted additional funds to totaling $1.46,091.75. There are sufficient funds in the TDA account to fund the additional $42,397.25 required to complete this project. OF „a,OF °� ,z �,,„ �,'4'-',r,;.,,se's ' �,�"` " `t.,,. tz 5' .;" s = °. . : y�..:r * r.+.y4'; I,j* ori ,4,14.,:.,24fe vv.-i 4fizi 4,i ,, .1., . - ,, A. r, -,.= P::'„ere I uS AINI CONSENT CALENDAR TO: - THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ALAN KREIMEIER, DIRECTOR OF ADMINISTRATIVE SERVICES/CFO VIA: F.M. DELACH, CITY MANAGERA DATE: JULY 25, 2011 SUBJECT: AZUSA POLICE MANAGEMENT ASSOCIATION CONTRACT- APPROVAL OF THE "MEMORANDUM OF UNDERSTANDING" (MOU) AUGUST 1, 2010 THRU JULY 31, 2015 RECOMMENDATION It is recommended that the City Council approves the "Memorandum of Understanding." .. BACKGROUND Beginning last winter, the Azusa Police Management Association, (APMA), and City Administration began negotiations to consider a new contract. After several months of negotiations and good faith bargaining, APMA and the City have reached agreement on a Memorandum of Understanding/contract lasting five years and addressing several areas of concern regarding long range financial impacts on the City. In return for modest salary increases over the term of the new labor contract, the City has received important long term concessions from APMA pertaining to long term pension obligation costs and health care benefits. At the meeting of July 18, staff presented the City Council for review a summary of the terms for a successor MOU between the City and APMA. Because of the complexities in finalizing the final language to be contained in the MOU, staff advised Council that they would bring the finalized MOU document and resolutions to the City Council at the July 25th, 2011 Utility Board Meeting. It ' i.. Vi-' n �� 1 W c41 (\ 1( 0 ILY 1-- (1\4 A summary of the proposed changes to the current APMA Memorandum of Understanding include: • A second tier retirement program for employees hired after January 1, 2011 under the PERS 3% at age 55 formula. The existing retirement plan for those already employed under the Public Safety Plan will remain 3% at age 50. Additionally new employees will pay 3% of the employee cost of PERS retirement. • A base rate for the Flexible Benefit Plan (Health and Dental) tied to the PERS HMO Kaiser Plan and PPO Dental Plan thereby eliminating the current automatic inflator provision. • Modification of the formula for Sick Leave payout and capping Sick Leave to no more than 1040 hours for new hires. • Elimination of the Computer and Home Exercise Equipment loan Program. • Elimination of the Tuition Reimbursement Program for the positions of Captain and Lieutenant. • Year 1 includes a salary increase of 5% for Sergeants, addressing rank salary compaction, and 2.7% for Lieutenants and Captains that are retroactive to August 1, 2010. • Year 2 includes a 2.25% Cost of Living increase for Sergeants and 2.5% Cost of Living increase for Lieutenants and Captains. Additionally, there is a mid-year 2.5% increase for Sergeant's to further address compaction issues. • Year 3 includes a 2.5% Cost of Living increase for Sergeants, Lieutenants and Captains. • Year 4 includes a 3.0% Cost of Living increase for Sergeants, Lieutenants and Captains • Year 5 of the MOU includes a 3.5% Cost of Living increase for Sergeants and a 4.0% for Lieutenants and Captains. • In year's 3 and 4, if the CPI increases above 3.5% employees will pay an additional 1% of the employee cost of PERS retirement. • Due to a significant increase in duties and responsibilities, and the personal coverage of a position vacancy, there will be a one-time 5% bonus for the Administrative Services Manager payable upon the approval of the City Council. FISCAL IMPACT The fiscal impact is $61,615 in the first year of the contract. The cost of the new MOU is on average a$76,943 increase per year over the next 4 years. ATTACHMENTS 1. Memorandum of Understanding 2. Resolution Approving MOU 3. Side Letter 4. Resolution for Employer Paid Member Contributions RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE AZUSA POLICE MANAGEMENT ASSOCIATION EFFECTIVE AUGUST 1,2010 THROUGH JULY 31,2015 WHEREAS, the City Council acknowledges the Azusa Police Management Association as the recognized employee organization representing those personnel occupying the positions identified in the attached Memorandum of Understanding between the City and the Azusa Police Management Association(APMA),and WHEREAS,the Memorandum between the City of Azusa and the APMA expired July 31,2010,and it is appropriate for the management of the City to receive proposals that govern the compensation,benefits and working conditions of City employees,and WHEREAS,the representatives of management and representatives of APMA have met on numerous occasions during the last 7 months and have discussed the issues between them and have bargained in good faith,and WHEREAS, management and APMA have come to an agreement with regard to every issue,and WHEREAS,the new Memorandum of Understanding between the City of Azusa and the APMA covering the period of August 1,2010 through July 31,2015,is attached. NOW,THEREFORE,BE IT RESOLVED that the City Counci of the City of Azusa does hereby approve the Memorandum of Understanding attached hereto and does direct the representatives of management to affix their signatures thereon. The City Clerk shall certify the passage of this Resolution. APPROVED AND PASSED this 25th day of July,2011. MAYOR 01-1 HE CI Iv OF AZUSA I HEREBY CERTIFY that the foregoing Resolution was duly passed by the City Council of the City of Azusa ata Special meeting thereof held on the 25th day of July,2011. AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK OF THE CITY OF AZUSA RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA FOR EMPLOYER PAID MEMBER CONTRIBUTIONS WHEREAS, the City Council of the City of Azusa has the authority to implement G.C. Section 20691; WHEREAS, the City Council of the City of Azusa has a written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer; WHERAS, one of the steps in the procedures to implement Section 20691 is the adoption by the City Council of the City of Azusa of a Resolution to commence said Employer Paid Member Contributions (EPMC); and WHEREAS, the City Council of the City of Azusa has identified the following conditions for the purpose of its election to pay EPMC: • This benefit shall apply to employees of the Azusa Police Management Association (APMA). • For all employees of the APMA (hired prior to July 1, 2011), the employer shall pay 9% of the normal member contribution. • For all employees of the APMA (hired after July 1 , 2011), the employer shall pay 6% of the normal member contribution. • For all employees of the APMA, effective August 1, 2013, if the CPI-U for the Los Angeles/Riverside/Orange County statistical area from June 2012 to June 2013 increases to above 3.5%, 1% of the member contribution paid by the City will be paid by the employee. • For all employees of the APMA, effective August 1, 2014, if the CPI-U for the Los Angeles/Riverside/Orange County statistical area from June 2013 to June 2014 increases to above 3.5%, 1% of the member contribution paid by the City will be paid by the employee. • The effective date of this resolution shall be July 1, 2011. NOW THEREFORE, be it resolved that the City Council of the City of Azusa elects to pay EPMC as set forth above: The City Clerk shall certify the passage of this resolution. APPROVED AND PASSED this 25th day of July 2011. JOSEPH ROCHA, MAYOR I HEREBY CERTIFY that the foregoing Resolution was duly passed by the City Council of the City of Azusa at a Special meeting thereof held on the 25th day of July 2011. AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: VERA MENDOZA, CITY CLERK MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF AZUSA AND THE AZUSA POLICE MANAGEMENT ASSOCIATION EFFECTIVE AUGUST 1, 2010 THROUGH JULY 31, 2015 1 . TERM OF MEMORANDUM OF UNDERSTANDING 1 2. TOTAL COMPENSATION 1 3. NON-DISCRIMINATION 1 4. SEPARABILITY 2 5. MAINTENANCE OF EXISTING BENEFITS : : 2 6. CITY RIGHTS 2 7. WORKWEEK AND TIMEKEEPING INTERVAL 3 8. SALARY 9. ADDITIONAL COMPENSATION/PREMIUM PAY 4 9. 1 Acting Employee 4 9.2. Bilingual Pay 4 9.3. Callout 5 9.4. Deferred Compensation (City-paid) 5 9.5. Educational Incentive Pay 5 9.6. Longevity Pay 5 9.7. Off-Duty Court Appearance Ti 6 9.8. Standby ("Court On Call") Pay 7 9.9. Overtime/Compensatory-Time 7 9. 10. Special Assignment Pay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 9. 11 Shift Differential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .7 9. 12. Uniform Allowance 7 10. LEAVE/DAYS OFF. 7 10. 1 . Administrati , e . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 10.2. Personal Leave 7 10.3. Bere . . eave .... 8 10.4. Ho ' s ... 8 10.5. I r ostrial Leave .. 9 10.6 k Leave 9 10. . - tion Leave 11 11 . AUTOMOBIL 12 12. DAMAGE TO PE ' ' AL EFFECTS 13 13. EMPLOYEE ASS ' TANCE PLAN 13 14. FLEXIBLE BENEFIT PLAN 13 14. 1 . Definition 13 14.2. Amount of Monthly Benefit 13 14.3. Eligibility 13 14.4. Termination 13 15. DISABILITY INSURANCE 14 16. LICENSE RENEWAL 14 17. LIFE INSURANCE 14 18. OUTSIDE EMPLOYMENT 14 19. PAYROLL DEDUCTION 14 20. PHYSICAL EXAMINATIONS 15 21. RETIREMENT 15 21.1 Optional Benefits 15 21.2. Health Insurance During Retirement 16 21.3. Retirement Planning Seminar 16 22. TUITION REIMBURSEMENT 16 CITY OF AZUSA AZUSA POLICE MANAGEMENT ASSOCIATION MEMORANDUM OF UNDERSTANDING August 1, 2010, through July 31, 2015 This Memorandum of Understanding is entered into with reference to the following facts: (1) The Azusa Police Mid-Management Association(APMA)(hereinafter referred to as"Association") is the recognized employee organization representing those personnel (hereinafter refe to as "employees") employed by the City of Azusa (hereinafter referred to as "City,")and occupying classifi Police Administrative Services Manager Police Captain Police Lieutenant Police Sergeant (2) In the interest of maintaining harmonious relati. .e -en the City an. • -mployees represented by the Association,authorized representatives of the Ci d the Association have me conferred in good faith,exchanging various proposals concerning wages, hou d other s and condition employment to affected employees. (3) The authorized representatives of the City and the • ation have reached an understanding and agreement as to certain changes in wages, hours and other terms an. "•nditions of employment of the affected employees which shall be submitted to the City Council of the City of Azusa -ppr• and implementation of these changes by appropriate ordinance, resolution, or er lawful action. Therefore,the City and the Associ tion St1 ject to the ..proval and implementation by the City Council of the City, the wages, hours, and other term d corTdi> _ +ployment for all affected employees shall be as follows: - 1. TERM OF MEMORANDU , ` -STAND! The term of this Memorand •f Understa g shall co ce on August 1, 2010,and shall continue through and including July 31, 2015. 2. TOTAL COMPS SATION As a matter of ssophy, t ssociat _n• a City agree that compensation consists of terms and conditions of employmen '`er than those esente. 'y by salary. Further, the City and the Association recognize that the changes ; ages, hours and r to and conditions of employment as set forth in this Memorandum of Unders di onstitute additio the otal compensation received by affected employees. 3. NON-DISC-" ATION 3.1. Protection is The parties mutu- recognize and agree to protect the rights of all employees hereby to join and/or participate in protected Association activities or to refrain from joining or participating in protected activities in accordance with Government Code Section 3500, et seq. 3.2. Anti-Discrimination The City and the Association agree that they shall not discriminate against any employee because of race,color, sex, age, national origin, political or religious opinions or affiliations. The City and the Association shall reopen any provisions of this Agreement for the purpose of complying with any final order of the federal or state agency or court of competent jurisdiction requiring a modification or change in any provision or provisions of this Agreement in compliance with state or federal anti-discrimination laws. 4. SEPARABILITY Should any provisions of this Memorandum of Understanding be found to be inoperative, void, or invalid by a court of competent jurisdiction, all other provisions of this Memorandum of Understanding shall remain in full force and effect for the duration of this Memorandum of Understanding. 5. MAINTENANCE OF EXISTING BENEFITS Except as provided herein,all wages, hours and economic terms and conditions o ent presently enjoyed by employees shall remain in full force and effect during the entire term of this M_ .'randu Understanding unless mutually agreed to the contrary by both parties hereto. 6. CITY RIGHTS 6.1. Management Rights The City reserves, retains and is vested with, solely an. c • ely ights of Management which have not been expressly abridged by specific provision(s)of this Memora if Understanding or by law to manage the City, as such rights existed prior to the execution of this Memorand of Understanding. The sole and exclusive rights of Management, as they are not abridged by this Memorandum . nder- nding or by law, shall include, but not be limited to, the following: 6.1.1 To manage the City gener ly a S,' e the iss of policy. 6.1.2 To determine the existence or n%xist- of ., which are the basis of the Management decision. 6.1.3 To determ' e nece y and org. •'zation of any service or activity conducted by the City and expand .iminish ser+ees. 6.1.4 To •. er he n- *Bans,and technology,and extent of services to be provided to the public. 6.1. o e fine me of ancing. .6 To determi pes • " •uipment or technology to be used. 6. To determin- d/or change the facilities, methods, technology, means, and size of the work orce by whi the City operations are to be conducted. 6.1.8 -t: "ne and change the number of locations, relocations, and types of operations, pro -s and materials to be used in carrying out all City functions including, but not limited to, the • t to contract for or subcontract any work or operations of the City. 6.1.9 To assign work to and schedule employees in accordance with requirements as determined by the City and to establish and change work schedules and assignments. 6.1.10 To relieve employees from duties for lack of funds or lack of work or similar non-disciplinary reasons 6.1.11 To establish and modify productivity and performance programs and standards. 2 APMA MEMORANDUM OF UNDERSTANDING, AUGUSTI, 2010,THROUGH JULY 31, 2015 6.1.12 To discharge, suspend, demote or otherwise discipline employees for proper cause. 40471:44.0S1100,0, 3 APMA MEMORANDUM OF UNDERSTANDING, AUGUSTI, 2010,THROUGH JULY 31, 2015 6.1.13 To determine job classification and to reclassify employees. 6.1.14 To hire, transfer, promote or demote employees for non-disciplinary reasons in accordance with this Memorandum of Understanding and applicable Resolutions and Codes of the City. 6.1.15 To determine policies, procedures and standards for selection, training and promotion of employees. 6.1.16 To establish employee performance standards including, but not Um' quality and quantity standards and to require compliance therewith. 6.1.17 To maintain order and efficiency in its facilities and operatio 6.1.18 To establish and promulgate and/or modify rules and re• : l ions to ma -'n order and safety in the City, which are not in contravention with this Agr_ ; ^e 6.1.19 To take any and all necessary action to carry o e mission of the City in em. •ncies. 6.2. Conformance with Rules The City shall have the right to exercise the rights provided in se •"through"16"of the Management rights clause, in accordance with the Personnel Rules and Regulations . hey exist as of May 16, 1988, and shall exercise these rights in conformance with the Personnel Rules and ' latio► 6.3. Meet and Confer Except in emergencies, or where the City is uire • es P .an in its operations because of the 9 requirements of law,whenever the exercise of M .gem rig all impact on employees of the bargaining unit, the City agrees to meet and c nfer with rep s: ives o he Association regarding the impact of the exercise of such rights, unle ter of the - se of such rights is provided for in this Memorandum of Understanding,or in Pers. -1 Rules Salary R.. •lutions and Administrative Code(s)which are incorporated in this Agreement. By. -ing to me nd confer Association as to the impact and the exercise of any of the foregoing City ' , Manage . is discreti. the exercise of these rights shall not be diminished. 7. WORKWEEK AND TIMEK • IN ERVAL 7.1. Wo se The lar workweek fora plo covered by this agreement shall be forty(40)hours for a seven(7)day p- • ,'nning at 12:01 a. -ach unday and shall consist of four(4)days a week and ten(10)hours per day Monday t •h Thursday. ' y hours of work or shifts for employees within departments shall be assigned by the departm ead, as re• ed to meet the needs of the department. 7.2. Workday The workday will t,; sist of ten and one half(101/2)hours with one-half(1/2)hour for lunch and 40 minutes of breaks to be scheduled in light of the departmental policy. The City reserves the right to determine the beginning and ending times of the workday. Police Lieutenant: For employees assigned to patrol, the workday will consist of ten (10) hours with lunch and breaks to be scheduled in light of department policy. 4 APMA MEMORANDUM OF UNDERSTANDING, AUGUSTI, 2010, THROUGH JULY 31, 2015 Police Sergeant: For employees who are scheduled to work a 3/12.5 schedule, the workday will consist of 12.5 hours and a 10- hour make-up day each 28-day work period. 7.3. Timekeeping Interval Police Captain and Police Administrative Services Manager: In compliance with FLSA, the minimum timekeeping interval, shall be one (1) ten (10) hour day. Police Lieutenant and Police Sergeant: In compliance with FLSA, the minimum timekeeping interval shall be fifteen (15 ute Periods of time of seven (7) minutes or less shall be rounded down, and periods of time of eig• '`; ) minutes or more shall be rounded up. Police Sergeant: The parties acknowledge that to maintain the 3/12.5 schedule' - sary to ma -'n a work period in accordance with section 7(k)of the FLSA. The parties agr. - ,rk period will re t. a 28-day work period. The city will pay overtime compensation to ce Sergeants as follows: 1. Working more than their regularly schedul-; .•urs on a day or 2. Working more than 160 hours over a 28 day F . period. 8. SALARY 8.1 Effective August 1, 2010: Police Captain and Police Lieutenant will receiv- salary i ' base pay of 2.7% Police Sergeant will receive a salary increase in e p- 5% Police Administrative Services -na;er will receiv-'a • time lu 'p sum cash payment equivalent to 5%of the annual base salary. The on: . • sum cas ent will not be subject to PERS retirement benefits. 8.2 Effective Janu 011: 44** Police Sergeant wil =cei, sala : ' e pay of 2.25% 8.3 Effect' 1, 201 . Police Ca, n Lieute . will -ceive a salary increase in base pay of 2.5% Police •eant will rece sala =se in base pay of 2.5% 'lice Administrative ice z nager,the City agrees to engage in a"Reopener"for salary alone for the • ion of Police Ad 'stra ,e Services Manager. 8.4 Effectiv- gust 1, 201 Police Captain, slice Liz ant and Police Sergeant will receive a salary increase in base pay of 2.5% Police Administr- - ices Manager, the City agrees to engage in a "Reopener" for salary alone for the position of Police A. istrative Services Manager. 8.5 Effective August 1, 2013: Police Captain and Police Lieutenant will receive a salary increase in base pay of 3%; in addition the City agrees to engage in a"Reopener"for the purpose of discussing and/or reconciling potential compaction issues for the Police Captain and Police Lieutenant positions only. Police Sergeant will receive a salary increase in base pay of 3%. Police Administrative Services Manager, the City agrees to engage in a "Reopener" for salary alone for the position of Police Administrative Services Manager. 5 APMA MEMORANDUM OF UNDERSTANDING, AUGUSTI, 2010, THROUGH JULY 31, 2015 8.6 Effective August 1, 2014: Police Captain and Police Lieutenant will receive a salary increase in base pay of 4% Police Sergeant will receive a salary increase in base pay of 3.5% Police Administrative Services Manager, the City agrees to engage in a "Reopener" for salary alone for the position of Police Administrative Services Manager. 8.7 Automatic Payroll Deposit The City will continue to offer Automatic Payroll Deposit in cooperation with any bank 'zes the Automated Clearing House service. 9. ADDITIONAL COMPENSATION/PREMIUM PAY 9.1 Acting Employee An employee otherwise eligible for acting pay shall not be eligible , ng eduled periods o" - .n or when on Sick Leave. • 41'111 I .404 6 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2008,THROUGH JULY 31, 2010 9.2. Bilingual Pay In addition to monthly basic pay, the City shall pay an incentive to personnel demonstrating a proficiency in a major foreign language if they are assigned and required to speak and translate the language in performance of their duties. Such additional payment is conditional upon demonstration of language proficiency by a qualified third-party c examiner mutually agreed upon by both the City and the Association. The incentive paid shall be$200 per month; provided, however,that employees recei „ -;' eater dollar amount for bilingual pay on the effective date of this MOU shall continue to receive the h'' : 'r doll-r amount. 9.3. Callout Police Lieutenant and Police Sergeant: If an employee occupying the position of Lieutenant or Sergeant .0 .`• to be call- cack t. work after completing his or her normal shift or after having left City premise e ployee's work lo - . - employee shall be compensated at the appropriate rate for each hour , ed on Callout with a mini r of (2) hours Callout compensation, regardless of whether the employee . :'.Ilywor -ss than two(2)h. . ''. This provision shall be applicable to an employee even though the empl• regular eek is not complete but shall not apply to an employee who is continuing on duty for his/ n. -I IN, shi t. For the purposes of this section only, the time starts when the Callout call is received by the em•'- . 9.3.1. Appropriate Rate of Pay for Callout The rate of pay for Callout shall be 404, - If(11/2)times ormal rate of pay. Callout may be entered as Premium Overtime or as Cons ' e Earne.. 9.4. Deferred Compensation (City-paid) Police Captain, Police Lieut- - -.lice Admi ative Services Manager: The City shall provide$1 •er month deferred p nsation. Police Sergeant: The City shall provi. $9. mop • : : . pensation. 9.5. Educ • -ntive ' Police ' stain: Em. -es occupying the p. ition aptain, who possess a master's degree from an accredited college or li u rs •• an academics tap•ropriate to law enforcement administration,and nota simple membership in a profess,. organization, II receive five percent(5%)per month of base salary as education incentive pay, not to excee. , 50 per mo- Police Lieutenant . , ce Administrative Services Manager: Employees occupy e position of Lieutenant and Police Administrative Services Manager who possess a bachelor's degre-' •m an accredited college or university in an academic subject appropriate to law enforcement administration, and not a simple membership in a professional organization, shall receive five percent(5%)per month of base salary as education incentive pay, not to exceed $300 per month Police Sergeant: The City will pay two and one-half percent(2.5%)of the employee's base rate if he/she possesses an Associate in Arts or Science degree or Intermediate Certificate issued by the California Commission on Peace Officer Standards and Training (P.O.S.T.)with forty-five (45) semester or equivalent quarter units from an accredited college or university, but not to exceed $125. 7 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2008, THROUGH JULY 31,2010 The City will pay five percent(5%)of the employee's base salary rate if he/she possesses a Bachelor of Arts or Science degree or Advanced certificate issued by the California Commission on Peace Officer Standards and Training(P.O.S.T.)with sixty(60)semester or equivalent quarter units from an accredited college or university, but not to exceed $250. Neither shall apply to an employee whose job description has an equivalency requirement for either an Associate in Arts or Science degree or a Bachelor of Arts or Science degree. Police Captain, Police Lieutenant, Police Administrative Services Manager and Police Sergeant: An employee shall be entitled to only one (1) increment of education incentive pay regflless of the number of qualifying degrees or certificates he or she possesses. Notwithstanding the foregoing,employees receiving a greater amount for educa,;.r incentive pay on the effective date of this MOU shall continue to receive the higher dollar amount. 9.6. Longevity Pay 9.6.1 The monthly longevity pay for employees hired on • t- . ugust 1,2000,sh- :ccordance with the following schedule: 7 yrs =$100 10 yrs =$200 15 yrs =$300 20 yrs = $400 9.6.2 The monthly longevity pay fo mployees hired prior to • , 2000, shall be in accordance with the following schedul POLICE SERGEANT 7 yrs $141.25 10 yrs $28 • No- 15 yrs $.74 20 yrs AF64.99 13OLICE AD - RATIVE SERVICES MANAGER $1 . . ' 10 yrs $303. 15 yrs j455.5. 20 yrs ® 607. POLICE LI TENANT rs $'171.40 rs $342.80 15 $514.20 ' s $685.59 POLICE CAPTAIN 7 yrs $199.88 10 yrs $399.76 15 yrs $599.65 20 yrs $799.53 8 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1,2008, THROUGH JULY 31, 2010 9.6.3 Notwithstanding the foregoing,employees currently receiving a higher dollar amount of longevity pay than the amount provided for under Section 9.6.2.shall continue to receive the higher dollar amount until eligible for an increase based on the schedule set forth in Section 9.6.2. 9.7. Off-Duty Court Appearance Time Police Lieutenant and Police Sergeant: Off-duty Court Appearance Time is applicable only for court appearances scheduled to begin during off-duty hours by employees occupying the position of Lieutenant and Sergeant. Court Time d 1:fi. regularly scheduled working hours shall be compensated at straight time on an hour-for-hour basis. The City agrees to pay for Off-Duty Court Appearance Time on an hour-for-hou is with a minimum of four(4) hours of pay at the appropriate rate(currently time and one-half). For exam. mployee' s shift begins at 3 p.m. and the employee's Off Duty Court Appearance begins at 2 p. r e em. -e will be entitled to a minimum of four hours of Off-Duty Court Appearance Time pay. Off Du ' •urt Appea e Time shall begin to accrue as early as 8:30 a.m. or the Court-requested show-up hou ,'is er is later. - case where the appearance is canceled by the Court (either directly or throu• ,; e -partment), the .. : - must be personally notified of such cancellation by the Department no I an 6:00 p.m.of the previo ourt day, or a guaranteed minimum of four(4) hours of Off-Duty Court Ap'. ance T - shall apply. "P: .nal" notification shall be defined as any one of the following (to be agre-,. •on in a•, between the employee and the department Court Officer): X In person, X To a responsible message taker, or X Via an answering machine or vr - mail Hour for Hour Traffic Court—Upon being sere w ` - -- - ourt"s .poena for traffic related proceedings, members of the APMA will be compensated W overti• ty based upon the amount of time they actually spend in court or at least a two(2)hou im hic r is greater.If the Court or the Department requires an employee who m-k-s .n Off-Duty - . •pearan a to also stand by on the same day(for that appearance and/or anoth- - employe- -II be entitled to receive pay for one of the following, whichever of the above '- eater: • 1) The act - in Court e four-hou ourt Time minimum,whichever is greater),plus the actual time sta`'ding or 2) ' ime sta • by(or the four-hour Standby Time minimum,whichever is greater)plus the ctual im Court; 9.8 : Standby("Court Cal 'ay Police U. -nant and Polie*- ergeant The City ag to pay for • _rt Standby Time(or other"On Call"time)by employees occupying the positions of Lieutenant an. ;' -rgea. ., an hour-for-hour basis with a minimum of four (4) hours of regular pay. Court Standby Time s •; to accrue as early as 8:30 a.m. or the court-requested show up hour, which ever is later, and shall co Je no later than 5:30 p.m. In cases where the appearance is canceled (either directly by the Court or thr•" ;" the Department), the employee must be personally notified of such cancellation by the Department no later than 6:00 p.m. of the previous court day, or a guaranteed minimum of four(4) hours of Standby Time shall apply. "Personal"notification shall be defined as any one of the following(to be agreed upon in advance between the employee and the department Court Officer): X In person, X To a responsible message taker, or X Via an answering machine or voice mail 9 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2008,THROUGH JULY 31, 2010 9.9. Overtime/Compensatory Time Police Lieutenant and Police Sergeant: The classifications ofLieutenant and Sergeant shall not be exempt from the provisions of FLSA. The minimum timekeeping interval shall be fifteen(15)minutes. Periods of time of seven(7)minutes or less shall be rounded down and periods of time of eight (8) minutes or more shall be rounded up. Lieutenants and Sergeants shall be entitled to Overtime Pay or Compensatory Time off for all hours worked in excess of ten (10) hours in one workday or forty(40) hours within the employee's re!),;.:.r workweek. For the purposes of this agreement, Holiday Pay, Sick Leave, and other Compensated Th p -� � shall count for the hours. Overtime Pay or Compensatory Time off for overtime shall be accum _,. ed in no less than fifteen minutes per day increments. When an employee works less than fifteen es per day of overtime, the employee shall not receive Compensatory Time for such overtime(Also se-. 0.1,Administrative Leave, Police Lieutenants). Police Sergeant: Employees scheduled to work the 3/12.5 schedule shall be entitl- • • r< ime Pay or corn w X> time off at the rate of one and one-half (11/4)times the employee's hour)j ' e for: Working more than their regularly scheduled hours on-,t en day o Working more than 160 hours over a 28 day FSLA we rpe In • to be entitled to any compensation for overtime hours worked, such overtime work must have been .rized by the department head or the City Manager. Accumulated Compensatory Time not taken off in th period in which it was earned, may be carried over to a maximum of 480 hours (320 hours worked at timd-o alf would equal 480 hours). 9.10. Special Assignment Pay sv Police Lieutenant: In addition to base monthly salary, the followin sign is fo classification of Lieutenant, when made by the Chief of Police or his d e, shall recei 10) ho s per month of Standby time, at the Premium rate (currently ti aV half): - Detective Lie , nt • Police Sergeant: In addition to mont 'y ba say, tR ments,when made by the Chief of Police or his designee, shall receive two and one-h.,', • <,".ent(2.5%): Ar 'cycle Patrol " er I to monthly basis l y, th-following assignment, when made by the Chief of Police or his designee, shall rec' - five percent( F". Mote :�gfficer In addition to mont ':•asic pay, the following assignments,when made by the Chief of Police or his designee, shall receive a 1'' um of ten (10)hours per month of Standby time, at the Premium rate(currently time-and- one-half): Detective SET Detective Gang Detective 10 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2008, THROUGH JULY 31, 2010 9.11. Shift Differential Police Lieutenant: Police Lieutenants assigned to the following shifts will be compensated for all hours worked as follows: - Swing Shift: additional $.64 per hour - Morning Shift: additional $1.27 per hour Police Sergeant: Employees assigned to the following shifts will be compensated for all hours worked �1follows: For employees scheduled to work a 3/12.5 schedule: Night shift additional $1.08 per hour Cover shift additional $.54 per hour For employees scheduled to work a 4/10 schedule: Swing Shift additional $.54 per hour w Morning shift additional $1.08 per hour -�9 Shift differential pay will not apply to individuals who are '.rki ,Y-ith a`"the above shifts on an overtime basis, on a shift exchange or when called out due to an emergency. 9.12. Uniform Allowance Uniform allowance for all APMA employ: r I z, per year and will b: id by the City in November. At this time it is not subject to income tax withho din. 10. LEAVE/DAYS OFF 10.1. Administrative L, -•% Police Captain and P. Administrate Services ; ger: Employees shall r- 1 fty(50) h.;+ per year of ministrative Leave beginning on July 1. An Employee L-ave Requ- st be approved by the appropriate department head prior to the use of Administra�; i nd suc :ve may not be carried over into the next fiscal year or cashed in if not used. Unused !(i inistrati ave m lo ;•:er, be converted to Vacation Leave. Administrative Leave shall be grant: ith due regar the e 3 y`-e's wishes and the operational needs of the department. It is the res,,.Ha ibility of the emplo to r ,-st conversion. Police Li),-nant: Individuals z i,=1 the classif tion of Police Lieutenant have the option of receiving Administrative Leave or Overtime Pay "n pen .tory Leave in accordance with City policy and the Federal Labor Standards Act (FLSA). (See Ov it sr ompensatory Leave Time). 10.2. Perso Ir` Leave Police Sergeant: 11 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2008, THROUGH JULY 31, 2010 Thirty (30) hours Personal Leave may be taken by employee. Personal Leave is to be distinguished from Personal Business Leave in that it does not have particular requirements for its use and is not deducted from the employee's Sick Leave balance. An Employee Leave Request must be approved by the appropriate department head prior to the use of Personal Leave and such leave may not be carried over into the next fiscal year or cashed in if it is not used. Personal Leave shall be granted with due regard for the employee's wishes and the operational needs of the department. This Personal Leave is also to be considered similar to Vacation Leave in that an open shift can be filled with overtime coverage. 10.3. Bereavement Leave An employee may be permitted to take up to forty(40) hours Bereavement Leav ,.:`he event of the death of a member of his/her immediate family. "Immediate family' member is herew efined as a mother; father, brother, sister, spouse, child, mother-in-law,father-in-law, grandparents or i` ing within the employee's household. Persons in loco parentis may also be considered under certa'_'_«rcums -s. Such leave shall not be charged against the employee's Sick Leave or vacation. Bereavement Leave for close personal relationships other th ,. ist relationships may,, F proved by Department Head and Director of Human Resources. In addition to Bereavement Leave, an employee may re• p to twe : I) hours of Sick Leave in the event of the death of an immediate family member. Such Le. - "sh ire c► 'tied against the employee's Sick Leave balance and shall be considered in calculating his or her ability `. ._`vert the balance. 10.4. Holidays 10.1.3. Designated Holidays , The employee shall receive time off wwayfo t . ' .• holidaysYbut only if the employee is paid for the workday that precedes or follow- - ho' /. If . , iday falls on an employee's scheduled day off, the employeesh II rec ive the holida o- e next cheduled business day. • The dates upon h these lidays shake observed are listed below: Holiday Month 2010- 2011- 2012- 2013- 2014- 2011 2012 2013 2014 2015 Independence Day July b* 4* 4 4 7* Labor Day 5* 3* 2* 1* Columbus Oct 1 10* 8* 14* 13* Veteran Day Nov 11* 14* 12* 11* 11 Thanksgiving Day _ Nov 25 24 22 28 27 Christmas Day P 27* 26* 25 25 25 msµ.. New Year's Day •=:;„ 3* 2* 1 1 1 Martin Luther King Day Jan 17* 16* 21* 20* 19* President's Day Feb 21* 20* 18* 17* 16* Memorial Day May 30* 28* 27* 26* 25* *=Mondays 12 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2008, THROUGH JULY 31, 2010 10.4.2. Holiday Pay Police Lieutenant: Police Lieutenants assigned to shift work shall receive an additional 100 hours pay per year(10 hours x 10 holidays)whether the holiday is worked or falls on a regularly scheduled day off. Police Sergeant: Shift Personnel - Employees shall receive an additional 100 hours pay per ye. „. hether the holiday is worked or falls on a regularly scheduled day off(paid the pay period followinf,;Y. .liday). Non-Shift Personnel - Employees who work holidays shall receive regula :f iy plu time and a half for hour's worked or equivalent compensatory time. 10.4.3. Floating Holidays Police Captain, Police Lieutenant (non-shift), and Police A ni :tive Services Ma ,,,le The City and the Association agree to three Floating -idays of ten (10) hours ear All Floating Holidays shall be requested in advance from the appr `ate dep ment head or diva chief. Enough employees shall remain at work during floating ho. . so that • ;ty's business may be conducted. Floating Holidays shall accrue on July 1 and must be tak- =" e following June 30, or the hours will be forfeited. It is the responsibility of the employee to make u 1f his or her holidays on a timely basis. 10.5. Worker's Compensation , .. A regular employee who is temporarily or pe ma itated as a --ult of injury or illness determined to be compensable under the Workers' Compensatio t sha b e .benefits in accordance with this act. 10.6. Sick Leave ,f Sick Leave shall not be co,, ued as ht, which employee may use at his or her discretion, but shall be allowed only in case of -ssity or act.1 sickness bility. The Finance Depart -nt ,.4-nal 3 :: _, he employees the amount of Sick Leave earned, less the amount used, and the net ac r s' ring the calendar year. 10 ck ye Dun -ro• ion ..ick Leave may be n dui.' v'he probationary period but only in such amount as the employee would ' ,e earned if on pene =status. If the employee does not become permanent, all paid Sick Leave m ;•e reimbursed e City at the time of employment or it shall be deducted from the employee's final pay ' k. 10.6.2. , .s- ' for Use of Sick Leave Sick Leav: Fall be granted for the following reasons: 10.6.2.1 Personal illness or physical incapacity. 10.61.2.2 Up to 12 days per year for the illness of a member of the employee's immediate family(father, mother, sister or brother), or members of the employee's household (husband, wife, and children) that require the employees' personal care and attention. Additional time, up to 12 weeks (running concurrently with family medical leave), could be approved by the department head when treatment for an illness, injury or condition which may be expected to be of long duration, has no 13 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2008, THROUGH JULY 31, 2010 reasonably predictable date of termination and requires continuous or intermittent care by the employee. 10.6.2.3 Enforced quarantine of the employee in accordance with Health Department regulations. 10.6.2.4 Medical, dental, and optical appointments. 10.6.2.5 Personal Business not to exceed forty (40) hours d ;Ag any one (1) year. "Personal business" means those items of personal r)E':' r, s that can only be taken care of during regular working hours of the erre yee. Personal Business Leave shall be approved or disapproved by the •F'r rtment head in accordance with this section. Departments are to use the n [- code PB for this purpose. Personal Business Leave shall be debite. ,':inst t ", -mployee's Sick Leave balance but Sick Leave taken as Personal iness Lea, `, . all not be taken into consideration for the purposes of the -: ,e Cash-In p" ;v am or with regard to employee performance evaluati. 10.6.2.6 In the foregoing circumstar Sick -ave must be , austed before Compensatory Time off or ion Leav-, ` be converted to Sick Leave 10.7. Restrictions on Sick Leave Police Sergeant: 10.7.1. Disability arising from ss or injury purpos- =If-inflicted. 10.7.2. Sickness or disability sustal whi e f absence, other than regular Vacation Leave. 10.7.3 Disabilit rising fro pensated employment other than with the City. • 10.6.3. Ac rual • Us- Polic- 'olice L nant and Police Administrative Services Manager: F. ployees -d prior t ly 011 Sick Leave with pay shall accrue to employees at the rate of ten •rs per month -ch cal- month of paid employment,with unlimited accumulation. Sick Leave all not be taken in . its o . . s than one-half hour. employees hire or a er July 1, 2011 sick leave with pay shall accrue at the rate of ten hours pe 'nth for each ndar month of paid employment. No more than 1040 hours of sick leave may be a -d. Sick le will cease to accrue when an employee's accrued sick leave balance reaches 1040 ho. Sic e accrual will resume when an employee's accrued sick leave balance drops below 104. 14 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2008, THROUGH JULY 31, 2010 Police Sergeant: For employees hired prior to January 1, 2006, Sick Leave with pay shall accrue at the rate of ten hours per month for each calendar month of paid employment,with unlimited accumulation.Sick Leave shall not be taken in units of less than one-half hour. For employees hired on or after January 1, 2006,Sick Leave with pay shall accrue at the rate of ten hours per month for each calendar month of paid employment. No more than 960 hours of sick leave may be accrued. Balances accrued over 960 hours will be paid out annually at a rate of 25% as a wellness bonus. 10.6.4. Sick Leave Draw Down n, See Sick Leave Draw Down Policy Vi,, 10.6.5 Sick Leave Donation Policy Employees shall be eligible for sick leave donation from c• i nrk,rw in accordance w 'ty's policy. 10.6. 6. Sick Leave During Vacation If an employee becomes ill or injured while on v.. ; io - or - may, by completing a Leave Request Form, use accrued Sick Leave time in lieu of Vacation the period of disability. 10.6.7. One-Fourth Conversion If the employee has used more th liginot more than six d of Sick Leave,excluding time spent on Personal Business or Bereavement,ViPt Id have th,"'allowing options: 10.6.7.1 Carry over the accl,an d it t or her Sick Leave balance. 10.6.7.2 my to the t that his/her balance is more than zero at the beginning of the ne ear, one- rth of the accrual to Vacation or convert one-fourth to cash (but no •`mbination o e two); unused, unconverted leave would then be added e employe Sick Leave balance. 10.6.8. ne-Thir• ar. -rsion If -.'employe s used . , .than three days of Sick Leave, excluding time spent on Personal mess or Bere ent h- yt.. e would have the following options: 10.6.8.1 arry:ver the accrual and add it to his or her Sick Leave balance. 10.6.8.2 Convert, only to the extent that his/her balance is more than zero at the beginning of the new year, one-third of the accrual to vacation or convert one-third of it to cash (but no combination of these two); unused or unconverted leave would then be added to the employee's Sick Leave balance. 10.6.9. Conversion to Cash Upon Separation - Police Captain, Police Lieutenant and Police Administrative Services Manager: Upon separation due to death (if he or she had attained permanent status) the employee's estate may receive fifty percent (50%) of his or her accrued Sick Leave balance in cash. 15 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2008, THROUGH JULY 31, 2010 Upon disability retirement with at least five (5) years of service with the City of Azusa, the employee may convert fifty percent (50%)of his or her accrued Sick Leave balance to cash. Upon voluntary separation with less than ten (10)cumulative years of service with the City of Azusa,the employee may convert fifty percent(50%)of his or her accrued Sick Leave balance to cash for hours in excess of three-hundred twenty(320)hours to a maximum payment of two hundred forty(240) hours. Upon voluntary separation with at least ten(10)cumulative years of C' „service,the employee may convert fifty percent(50%)of his or her accrued Sick Leave • , to cash. Upon voluntary separation with at least twenty (20) cumul .;- years of City service, the employee may convert seventy-five percent(75%)of his or ed Sick Leave balance to cash. Upon voluntary separation with at least twenty-fiv- ulative yea • City Service, the employee may convert one hundred percent(100 , o or her accrued e balance to cash. In case of layoff, the employee shall b- ed to c•- 100% of his or her accrued Sick Leave balance to cash Police Sergeant: Upon separation due to death (if he or she had at . -d p-- anent status) the employee's estate may receive fifty pe -nt(50%)of his or her ac. ' = .ick Leave balance in cash. Upon disability retireme wit: a f' - (5) years service with the City of Azusa, the employee may convert fifty pe t(51/o; o er accrued SiCk Leave balance to cash. Upon voluntary separation with I- . • ten(1 b cumulative years of sworn safety service with the City of • e Depart e employee may convert fifty percent(50%)of his or her accrued ' Leave • nce to ca i_for hours in excess of three-hundred twenty(320)hours to a ma • d m paymen two hundr: y(240) hours. U. v. ary r- ' - **oast ten(10)years of City service,the employee may convert fifty perce •0 of is or her accrued Sick Leave balance to cash. .0 •luntary rat• with at least ten(10)cumulative years of sworn safety service with the Cit usa ' J epartment,the employee may convert fifty percent(50%)of his or her accrued Leav- .lance to cash. Upon vol • separation with at least twenty-five (25) cumulative years of sworn safety service wi - the City of Azusa Police Department, the employee may convert one hundred .ercent )1%)of his or her accrued Sick Leave balance to cash. 10.6.10. C. —rsion to Service Credit Upon Retirement Pursuant to the terms of the City's contract,as amended,with the CaIPERS,upon voluntary retirement the employee may convert 100% of his or her accrued Sick Leave balance, less any amount converted to cash under the above provisions. 10.6.11. Conversion Deadline A decision to convert Sick Leave according to the policies stated shall be made by March 31. 16 • APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2008, THROUGH JULY 31, 2010 10.7. Vacation Leave 10.7.1. Required Usage and Carryover Police Captain, Police Lieutenant and Police Administrative Services Manager: Leave will be credited on a "per-pay-period" basis. Employees shall be required to use one-half(2) of their annual Vacation accrual yearly. Employees may accrue up to a maximum of fifty two(52)times the then-current pay period rate of Vacation accrual. Notwithstanding the accrual cap, employees shall continue to accrue Vacati• during the term of this MOU; provided that each employee reduces his or her Vacation Leav: excess of the cap over the term of the MOU. Commencing July 31, 2004,the cap shall be enforced and any ac in exc- : -•f the cap shall be paid as earned. Police Sergeant: Vacation Leave will be credited on a"pay-per-period"b. Employees shall be requir: • use one half (1/2) of their annual Vacation accrual yearly and sh- = able to --rry over one hal 2) of one year's Vacation accrual from one year to the next,cumul. up to a • urn of fifty two(52)times the then- current pay period rate of vacation accrual. Exi g b. c-- er the limit shall be paid off during the term of this Memorandum of Understanding based on a schedule determined by the employee. Such excess vacation accrual may also be taken as time o proved by management. Effective 8-1- 2000, employee with more than the maximum amount will n.. •ntin o accrue additional Vacation Leave, but will receive cash each pa iod in lieu of Vacation Le it balance falls below maximum time allowed. Employee may dir dgferred compenswithin the legal limits. 10.7.2. Cash-In Policy Employees covered b t ' emorandum f erstan ing may convert vacation time to cash with administrative appro 10.7.3. Accr Vacation Lea e sh- -ccr - Polic- . ,-olive L . -nant and Police Administrative Services Manager: T .gh he 5t -r of a 120 hours ough the 6th - of emp nt 128 hours Through the 7th yea ern• ent 136 hours 'ugh the 8th yea emp oyment 144 hours Th .h the 9th yea employment 152 hours Throb the 10th ye .f employment 160 hours Throug 11th :r of employment 168 hours Through t ^ :%ear of employment 176 hours Through the ":.' year of employment 184 hours Through t 4th year of employment 192 hours Through the 15th year of employment 200 hours Through the 16th year of employment 218 hours Police Lieutenant: In addition, Police Lieutenants assigned to shift work shall accrue forty(40)additional hours per year in lieu of holidays 17 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2008, THROUGH JULY 31, 2010 Police Sergeant: Through the 4th year of employment 90 hours per year Through the 5th year of employment 120 hours per year Through the 6th year of employment 128 hours per year Through the 7th year of employment 136 hours per year Through the 8th year of employment 144 hours per year Through the 9th year of employment 152 hours per year Through the 10th year of employment 160 hours per year Through the 11th year of employment 168 hours per year Through the 12th year of employment 176 hours per year Through the 13th year of employment 184 hours per year Through the 14th year of employment 192 hours per year Through the 15th year of employment 200 hours per year Through the 16th year of employment 218 hours per year Police Sergeant: In addition to the above, sworn shift personnel shall accru: s)additional hou -r :r in lieu of holidays. 11. AUTOMOBILES Police Captain and Police Lieutenant: Captains and Lieutenants will be permitted to use city vehicles for co ` ting to and from home. Other than for commuting the vehicle is not to be used for personal use. Data will be colle• • reg- 'ng the frequency and number of call-outs from the employee's home. 12. 12. DAMAGE TO PERSONAL EFFE S dik Police Captain, Police Lieutenant and Police Adminis ive ces ' ager: If, in the course of business, an em•lo ee's personal c • '. •r effec are accidentally damaged or destroyed, the employee may submit a claim for • ent for u• .ne hundred dollars ($100). Police Lieutenant: It is further expressly and- •for Police tenants th rescription eye glasses or contact lenses and hearing aid devices are exempt form j ne ' •red • Police Sergeant: If, in the course " 'e u n-ss, office e •ye: personal clothing or effects are accidentally damaged or destroyed, the employe: -y submit a c for reim. ent up to one hundred dollars($100)to the City's Safety Committee. The con ' ,e shall have the au rity to' stigate the claim and recommend to the City Manager,or his designee, to pay b'' ount of the clai •eny e claim, or apportion the claim based on normal wear and tear of the item and/ort e ext- ef the employe-' :"'egligence in following proper safety procedures. It is expressly understood that stockings and so• : -re exempt f this procedure. It is further expressly understood that prescription eyeglasses or contact lenses and - ing ai• ices are exempt from the one hundred dollar($100)limit. 13. SAFETY EQUIP The City will provise required safety equipment and will replace worn safety equipment for current sworn employees as determined by the department head. 18 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2010, THROUGH JULY 31, 2015 13. EMPLOYEE ASSISTANCE PLAN The City will continue to maintain the Employee Assistance Plan. 14. FLEXIBLE BENEFIT PLAN 14.1. Definition Effective August 1, 1993, the City's existing Cafeteria Benefit Plan(CBP)was co t ed t an IRS Section 125 Flexible Benefit Plan (FBP) administered by either the City or its designee. . 14.2. Amount of Monthly Benefit Effective August 1, 2010, the City will maintain the Flexible Benefit ' - g-ne thousant e three hundred forty six dollars ($1,346) per month for each employee. This pia, used by the em• ( . pay, to the extent available, for qualified benefits as determined by th „E`tlS. The employee underst- that, in the event the total premiums and/or expenses for qualified be select: by him/her excee a e amount of the FBP; the excess shall be deducted from pre-tax was the emp 14.2.1. Yearly Increase Effective January 1, 2011, the City will maintain the Flexible ' or ,.•ution in an amount equal to the CalPers, Los Angeles Cou .iser Family Plan Rate p . .. e Delta Dental PPO Family Plan Rate. The monthly Flexible Be ° •. : aunt shall remai► ,346.00 per month and will not change until the monthly CalPers, �s •n, a _ . nty, Ka Ser Family Plan Rate plus the Delta Dental PPO Family Plan Rate exceed $1,34,; d nth. Effective January 1, R City will m. "he Flexi le Plan contribution in an amount equal to the CalPers, L. _ g le z.,•unty, Kai , amily Plan Rate plus the Delta Dental PPO Family Plan Rate. The mthly FlexiMie Benefit • -r..mount shall remain $1,346.00 per month and will not change u e mon M y CalPers, L. .'A ngeles County, Kaiser Family Plan Rate plus the Delta Dent y` amily PI- ;'ds $1,346.00 per month, at which time the monthly Flexible Benefit P ill iR amount equal to the CalPers, Los Angeles County, Kaiser F ily Plan . .. us the Delta Dental PPO Family Plan Rate. active Janu 1, 2013, ',- will maintain the Flexible Plan contribution in an amount equal to "e CalPers, L ngeles nty, Kaiser Family Plan Rate plus the Delta Dental PPO Family Plan -ate. The month) Iexi• enefit dollar amount shall remain $1,346.00 per month and will not 1 t nge until theonthy CalPers, Los Angeles County, Kaiser Family Plan Rate plus the Delta PPO Family n Rate exceeds $1,346.00 per month, at which time the monthly Flexible Ben- i Flan will in se to an amount equal to the CalPers, Los Angeles County, Kaiser Family Plan R •lus t► delta Dental PPO Family Plan Rate. Effective uary 1, 2014, the City will maintain the Flexible Plan contribution in an amount equal to the CalPers, Los Angeles County, Kaiser Family Plan Rate plus the Delta Dental PPO Family Plan Rate. The monthly Flexible Benefit dollar amount shall remain $1,346.00 per month and will not change until the monthly CalPers, Los Angeles County, Kaiser Family Plan Rate plus the Delta Dental PPO Family Plan Rate exceeds $1,346.00 per month, at which time the monthly Flexible Benefit Plan will increase to an amount equal to the CalPers, Los Angeles County, Kaiser Family Plan Rate plus the Delta Dental PPO Family Plan Rate. 19 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2010,THROUGH JULY 31, 2015 Effective January 1, 2015, the City will maintain the Flexible Plan contribution in an amount equal to the CalPers, Los Angeles County, Kaiser Family Plan Rate plus the Delta Dental PPO Family Plan Rate. The monthly Flexible Benefit dollar amount shall remain $1,346.00 per month and will not change until the monthly CalPers, Los Angeles County, Kaiser Family Plan Rate plus the Delta Dental PPO Family Plan Rate exceeds $1,346.00 per month, at which time the monthly Flexible Benefit Plan will increase to an amount equal to the CalPers, Los Angeles County, Kaiser Family Plan Rate plus the Delta Dental PPO Family Plan Rate. 14.3. Eligibility In order for an employee to be eligible for the FBP in any given month, he/ , t be on payroll on the first work day(excluding recognized paid City holidays)of that month. A new employee will be eligible for the full FBP applicable to his/her . . •.` •g unit if he • begins work on the first work day(excluding recognized paid City holidays)of the mo -mployee whose . o e is on the second work day(excluding recognized paid City holidays)of tr onth or thereafter will not gible for the FBP for that month. If an employee does not meet the qualifying work time i 1 -n m.' - angements must be made with the Finance Department to reimburse the City for any bene its tha ready been paid out on the employee's behalf for that month. The Finance Department will notify the em• -e if he/she has not met the qualifying work time for eligibility for the FBP. 14.4. Termination The City will not be responsible for payment • gy qu- • efits on behalf of the employee following the month of termination. If an employee repres- ed by As ion wishes to continue his/her qualified benefits, advance payment for such qualified be it be d- acted from the employee's final pay. • 15. DISABILITY INSURA • V' 15.1. The City s m. ain in : , , of this agreement a disability plan-covering employees set forth herein. Sai. - I •ro i•e -n =mployee with a maximum of two-thirds (b) of his/her base sal-N e. ployee` utilize his/her accrued Sick Leave, Vacation, and/or Compensatory Time to s - - t disabili .ym-It so as to receive 100% of his/her base salary. The disability plan udes the fo ;ng: 5.1.1. Provides •- .7% the employee's monthly salary; 1 -. . Commenc=� after a 30 calendar day waiting period and provides a benefit to age 65; 15.2. For the t 30 -ys of non-job related illness or injury, the employee will use accrued Sick Leave, compens- ime or Vacation Leave; The emp •yee will be allowed to use accrued Sick Leave in conjunction with the long-term disability plan to provide for a full paycheck; At no time will an employee receive more than 100% of their base pay; 15.2.1. The premium will be added to the employee's gross pay and deducted from the net pay so as to make the benefits exempt from further taxation. 20 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2010, THROUGH JULY 31, 2015 16. LICENSE RENEWAL Police Captain, Police Lieutenant and Police Administrative Services Manager: The City agrees to pay the cost of maintaining certifications and licenses that are necessary to maintain the minimum requirements for the licensee's job. 17. LIFE INSURANCE Police Captain, Police Lieutenant and Police Administrative Services Manager: The City shall provide term life insurance equal to one and one-half(1 1/2)times . -arnings. Police Sergeant: The City shall provide group life insurance to all Association members in a nt of cove - one (1)times the member's annual earnings. 18. OUTSIDE EMPLOYMENT Outside employment will be permitted, provided that the outside e ent is consistent with moral & ethical guidelines established by the Chief of Police and the Association and he employee, prior to accepting outside employment, signs an agreement, which: 18.1 Acknowledges that said employ • • side the course and • .e of the employee=s employment with the City of Azusa and that s-id e ►+.I i not for the nefit of the City of Azusa; and 18.2 Releases, indemnifies, and holds the ' of ' its . is and employees harmless for any liability,whatsoever,arising out of said e .lo -nt, inc ."•ing but not limited to, injury or damage to the employee, and 4N 18.3 Acknowledges :'t the City 41 have nosibility or obligation, whatsoever, to provide a legal defense as a result - outside e • ..yment en d in by employee. 444. 19. PAYROLL DEDUCTION Police Captain ' is L u nt and ,. e A inistrative Services Manager: Upon writte "ployee auth tion an. gnation of dollar amount, which may be revoked in writing by the employee ny time, the City es t. ablish a payroll deduction account for said employee. The City shall accrue . •unt deducted pee e •loyees authorization on a non-interest bearing basis. Upon thirty days advance notic- • the Finance D rtment, an employee may request pay off of the accrued amount in his or her account once pe -r. 20. PHYSICAL E ' •NS The City will continue t' ovide annual physical examinations, for all sworn officers, on a voluntary basis. 21. RETIREMENT Police Captain, Police Lieutenant and Police Sergeant: For employees hired prior to July 1, 2011,the retirement benefit shall be 3% @ 50. The City shall continue the highest level of the 1959 survivor benefit. The City shall continue to pay both the"employee" and the"employer" share of the cost. 21 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2010,THROUGH JULY 31, 2015 For employees hired after July 1, 2011, the retirement benefit shall be 3% @ 55. The City shall continue the highest level of the 1959 survivor benefit. The employee shall pay 3% of the"employee" share of the CaIPERS cost and the City shall pay the remainder of the"employee" share and the"employer" share of the CaIPERS cost. Effective August 1, 2013, if the Los Angeles-Riverside-Orange County, CA CPI-U from June 2012 to June 2013 increases to above 3.5%, all "Safety" members will pick up an additional 1% of the employe-'s share of the CaIPERS premium payment. Effective August 1, 2014, if the Los Angeles-Riverside-Orange County, CA CPI-U fr.;., dune 2013 to June 2014 increases to above 3.5%, all "Safety" members will pick up an additional 1% of th= •yee's share of the CaIPERS premium payment. Police Administrative Services Manager: The City shall continue its contract with the California Public Employees' - ent System (Ca , S) the 2%@ 55 full formula plan. The City shall also maintain the increased lev the 959 Survivor Bene" _ ''e City shall continue to pay both the "employee"and "employer"share of the ,, . 21.1 Optional Benefits 21.1.1 The City's contract with the CaIPERS includes -dditio -1 benefit of Service Credit for Unused Sick Leave. 21.1.2 The City's contract ^ R includes icipation in the two-year Golden Handshake program as au iz d . . to Legislature. The availability of this benefit shall be within the discretion the Ci ou 21.1.3 The City' • with the C- includes the Employer-Paid Member Contribution in base p ,ring inal comp- ation period. 21.1.4. C- RS Service edit for Milit ervice The Ca vi e redit Purchase Assistance Plan described below shall be male ava - to full time regular employees who have completed their initial probation i',.d with t ity. The C contra h CaIPERS includes the provisions of Section 21024, Military Service Credit a Publi. .ervice. Eligible employees with qualifying military service can contact CaIPER d arrange to be billed for the service credit (CaIPERS' estimate is $5,000 per year of s, ice). The City shall reimburse the employee for 25% of the amount of the bill. f d- i" d, the employee may apply for a loan from the City for the remaining 75%. The 1r,i, •yee shall apply for the loan on a City-provided loan application. If the employee ,"lo-lifies, the City will fund the loan on an interest-free basis. Loan payments must be by •ayroll deduction. Each loan payment period shall not exceed six years. The City may require collateral. Any remaining loan balance must be paid in full at the time of separation of employment. Payment will be made directly and/or by deduction from the last paycheck. In the event an outstanding balance remains, the employee is responsible for making payment 22 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2010, THROUGH JULY 31, 2015 arrangements. The failure to make full payment will obligate the employee to pay the City's attorney's fees in any restitution process. 21.2. Health Insurance During Retirement Police Captain, Police Lieutenant and Police Administrative Services Manager: Employees within the APMA as of August 1, 2005: Beginning with the first month after retirement,for Association employees who,at t,,,-,-,,,, me i, retirement from the City of Azusa, have attained the age of fifty (50) and have at least twenty cumulative years of City service, the City will provide lifetime medical insurance for the employee an' ' _,,.e at the time of retirement. This coverage will be at the PERS Choice rate. } For Association employees who, at the time of retirement from the o -usa have - ,:ned the age of fifty (50) and have at least fifteen (15) cumulative years of City se' s:- City will prove. +% the PERS Choice Plan for the employee only. For Association employees who, at the time of retiremen the City :.' usa, have attained the age of fifty (50)and have at least ten(10)cumulative years of Cit ,-,th !ill provide 50%of the PERS Choice Plan for the employee only. Should the employee select a less expensive plan, the differentia , .y be °plied to dental COBRA for a maximum period of eighteen (18) months, t not as a cash benefit to s.s •loyee. Employees NOT within APMA as of Aug t 1, For Association employees who, at the time o "Vremeity of Azusa, have attained the age of fifty (50) and have at least twenty(20) cumulative e, the City will provide lifetime medical insurance for the employee and spouse at the tihis coverage will be at the PERS highest HMO rate. For Association emplo , s who, at thOtime of retir from the City of Azusa, have attained the age of fifty (50) and have at le. een (15) c } Iative yea f City service, the City will provide 75% of the PERS highest HMO rate ,, th ploy roof For Associ io•_c • •yees t the time of retirement from the City of Azusa, have attained the age of fifty (50)and n „ I—. 1.' (10)c lati ,-years of City service,the City will provide 50%of the PERS highest HMO r or the empl _ only. S d e employee sele' .a le = expensive plan, the differential may be applied to dental COBRA for a m` xim . •eriod of eighte I.' 8) months, but not as a cash benefit to the employee. Police Serge.: ; Beginning with sirs:` •nth after retirement,for Association employees who,at the time of retirement from the City of Azusa, hay # .fined the age of fifty(50)and have at least twenty(20)cumulative years of sworn safety service with the 1 wof Azusa Police Department, the City will pay until the employee passes away, an amount equal to the single coverage premium in the employee's comprehensive health insurance plan.The amount of the City's contribution shall vary, up or down,depending upon the employee's choice of health insurance carrier and its periodic changes in its rates. The minimum contribution that the City pays directly to CaIPERS shall be considered to be part of the portion paid by the City. If a retired employee maintains health insurance other than a CaIPERS plan, the maximum amount the City will pay for the insurance premium will not exceed the single premium for the PERS Care plan. 23 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2010,THROUGH JULY 31, 2015 Spousal Option— In lieu of receiving the single coverage identified in section 16.3 a retiree who qualifies for single coverage may opt to select a less expensive plan, and use the differential toward health coverage for the spouse. If the retiree selects this option the total contribution by the City that may be used for the retiree and spouse can be no greater than the single-coverage premium for the L.A./Orange County Sectors(as provided by PERS) PERS Care plan. The City contribution is to be used for health insurance premiums only. There is no cash out option. This option may be selected or deselected at anytime during retirement. 21.3. Retirement Planning Seminar Employees who are in their"final compensation period"for CaIPERS purpose -II be allowed to attend one nearby CaIPERS retirement planning/information seminar at City expense a• • ity time. Such attendance shall be considered to be a training expense chargeable to the employe-' y' om :vision. 22. TUITION REIMBURSEMENT Police Sergeants: 22.1. Objective The tuition reimbursement program is designed to enc. .g_ plo :t.continue their self-development by enrolling in approved classroom courses, which will: 22.1.4. Educate them in new concepts and methods in t ..ccup. ;.nal field and prepare them to meet the changing dema s of their job. 22.1.5. Help prepare them for va a ..sitions of. :ter responsibility in the City of Azusa. 22.2. Eligibility 22.2.1. All regul- 'ted emplo .re eligible to receive tuition reimbursement. Courses must ence r appoint -nt and be in excess of the educational standards for the pos ' An exa of this w. ' - job-related college or university courses when the s• ation for th- lassificatio Is for high school graduation. 22.2.2. Course . (-xcep w ere noted below in paragraphs 23.3.3. and 23.3.4.)traditional I sroom rses taken at colleges or universities and approved by the Western iation . hoo _ and Colleges approved mail correspondence or internet courses. Dist learnin, .es offered by such colleges and universities shall be covered by this provisi redit en for non-classroom assignments such as life experience, military training, d pr• ssional training are not reimbursable. 2 Coursew'rk must be related to the employee's current occupation or to a City classification to which employee may reasonably expect promotion. 22.3. Courses a eligible if they: 22.3.1. "Are above the educational requirements of the position as noted in the position specification and are not taken to acquire skills, knowledge and abilities which the employee was deemed to have when appointed the position. 22.3.2. Do not duplicate training which the employee has already had or which is to be provided in- house. 24 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2010, THROUGH JULY 31, 2015 22.3.3. Do not duplicate previously taken courses unless special approval has been granted by the department head and the Human Resources Division. 22.3.4. Are required for the completion of the pre-approved job-related major. An example would be general education or elective requirements for the major as stated in the school catalog. Remedial courses or those taken as required for a non-approved major shall not be eligible. 22.3.5. Lead to a City-approved certificate, license or registration. Reimb : p ent may be made for any examination fees required to successfully obtain the certif c!,----1, li4"`nse or registration. Reimbursement for eligible expenses will be made after obt,ti g the license, certificate or registration. 22.3.6. Are not taken on City time and must be certified tha Ey are tai +n the employee's off- duty time. , �� � a tea'` 22.3.7. Are part of a bona-fide curriculum of the stu. :; a fo eign language for w , e City pays an incentive. F` 22.3.8. Have been approved by the Depart, -ad a _:' ity Manager or his/her designee before commencement of the class. , ' 22.4. Reimbursement 22.4.1. The City shall reimbur I ees for tuition, regis ► .nffees and texts required for the eligible courses. Exp es .• g, travel, and s, processing fees, transcript fees, .. materials and any other co 4 re n. . . sable. 22.4.2. Employees shall be reimburs u• the d, r amount charged for the same number of units per •f;. alifornia St a, ,1iversity system. 22.4.3. In or :'to be rev ;, ed, each j,• "; ation must state exactly which units or credits the e ee is appl ' g for and -ther the courses submitted are core courses or o -nded e v r a.proved major. 22.4.4. Reimburs e'? t shall be made upon completion of the course with a minimum final grade of k :;,,r its eq -nt, i.e., a pass in a pass/fail course will be considered equivalent to a"C." ''`" No ¶bursem ' be made for audited or incomplete courses. F 2.4.5. Employe s mu- ' bmit from the attendant institution an original certification of fees paid and grade a , ed in order to have their application considered for reimbursement. These docume must accompany the reimbursement application form in order to be processed. 22.4.6.` pp= „ ion for reimbursement must be submitted within three months of the completion of '.proved course in order to be considered for reimbursement. 22.4.7. ' pon termination from employment, employees shall be required to reimburse the City for any funds received under this program for courses completed during the last 24 months of employment. This payback provision does not apply to employees laid off by the City or who separate as a result of a City/departmental reorganization. 25 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2010, THROUGH JULY 31, 2015 AZUSA POLICE MANAGEMENT ASSOCIATION Lieutenant Frank Chavez, President Date: Lieutenant Paul Dennis, MemberDgE « y» . \.. , CITY OF AZUSA . © ` Fran Delach CityManager • Date Alan Kreimeier Director of Admin Sery/CFO Sonia Carvalho, CityAttorney Best Best & Kre e Da• S. . .* © ^y \ . 26 APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2010, THROUGH JULY 31, 2015 INDEX Acting Employee (4) Additional Compensation/premium Pay(4) Acting Employee(4) Bereavement Leave (8) Bilingual Pay(4) Callout(5) Deferred Compensation (City-paid) (5) Educational Incentive Pay(5) Holidays(8) Longevity Pay(5) Off-duty Court Appearance Time (6) Overtime/compensatory Time (7) Standby("Court on Call") Pay(7) Uniform Allowance (7) Administrative Leave(7) Automatic Payroll Deposit(4) Automobiles (12) Bereavement Leave (8) Bilingual Pay(4) Callout (5) City Rights (2) Conformance with Rules (3) Meet and Confer(3) Damage to Personal Effects (13) Deferred Compensation (5) Disability Insurance (14) Educational Incentive Pay(5) Employee Assistance Plan (13) Flexible Benefit Plan (13) Amount of Monthly Be. (13) Definition (13) Eligibility(13) Termination (13) =b Yearly Incre..., Health Insura► . during Re ent(1. Holidays (8 Industri- e (9) Leave/6 s • ) License Renew. ,4) Life Insurance (1 Longevity Pay(5) Maintenance of Existin• - ''its (2) Non-discrimination (1) Anti-discrimination Protection of Rights (1) Outside Employment(14) Overtime/Compensatory Time (7) Payroll Deduction (14) Physical Examinations (15) Retirement (15) Optional Benefits (15) APMA MEMORANDUM OF UNDERSTANDING, AUGUST 1, 2010, THROUGH JULY 31, 2015 Retirement Planning Seminar(16) Salary(4) Automatic Payroll Deposit(4) Separability(2) Sick Leave(9) Accrual and Use (10) Conversion Deadline (11) Conversion to Cash upon Separation (10) Conversion to Service Credit upon Retirement(11) One-fourth Conversion (10) One-third Conversion (10) Personal Business (9) Reasons for Use of Sick Leave (9) Sick Leave During Probation (9) Sick Leave During Vacation (10) Term of Memorandum of Understanding (1) Total Compensation (1) Tuition Reimbursement(16) Eligibility(17) Eligible Courses (17) Objective(16) Reimbursement(17) Uniform Allowance (7) Vacation Leave (11) Accrual (10) Cash-in Policy(12) 414V*'4*** Required Usage and Carryover(11) Workweek and Timekeeping Interval (3) Timekeeping Interval (3) 4% Workday(3) Workweek (3) • +444 414\ I I CITY OF AZUSA Exhibit A Azusa Police Management Association Salary Schedule 08/01/2010 Classification Barg UnitBenefits! Range Step 1 Step 2i Step 3! Step 4 Step 5 PPOLICE OLICE ADMINSN CAPTAIN APMA SERVC MNGR AAPMA APMA PMA APMA 3411 6595.27 6942.354_ 7307.80� 7692.39 8097.29 3482 10210.77 10711.094_ 11237.62' 11791.71 12374.88 POLICE LIEUTENANT APMA APMA 3423 8554.98 8987.29 9442.34; 9921.95 10425.83 POLICE SERGEANT APMA APMA 3501 7040.26 7397.33; 7773.24; 8168.92, 8585.28 Augist 1, 2010 July 25, 2011 SIDE LETTER AGREEMENTS BETWEEN THE CITY OF AZUSA AND THE AZUSA POLICE MANAGEMENT ASSOCIATION, (APMA). During the course of Meet and Confer Negotiations between the City of Azusa and the Azusa Police Management Association on a successor agreement, (Memorandum of Understanding), for the period August 1, 2010 to July 31, 2015 the following 2 issues were agreed to by way of a "side letter". 1. Corporal Randy Schmidt Corporal Randy Schmidt successfully completed the promotional process with Corporal Dewayne Eldridge in the fall of 2010. At that time there were two vacancies for the rank of Sergeant due to retirements. Chief Garcia immediately promoted Corporal Eldridge to the position of Sergeant and expressed full intention of promoting Corporal Randy Schmidt. With respect to the fiscal challenges of the 2010-2011 budgets, it was agreed upon to postpone the promotion of Corporal Schmidt until July 1, 2011, the start of the 2011-2012 fiscal year. Because of this cooperative agreement, newly promoted Sergeant Randy Schmidt will receive the same benefits as all current members of equal rank in the APMA as of the signing of this new contract. Sergeant Randy Schmidt will not receive any retroactive pay or benefits under this new agreement that he is not entitled to based on his promotion. 2. Administrative Services Manager, Gina Miller Administrative Services Manager, Gina Miller has been functioning as the Department's civilian manager, with all the duties, responsibilities, and obligations that accrue to that position. In recent years, her responsibilities have increased to include jobs being performed by her subordinates, due to vacancies created by their absence. The added responsibilities have resulted in a substantial increase in workload for her, and a substantial salary savings for the City. Subsequent to the effective date of this MOU, the City agrees by way of Side Letter, under the provisions of the applicable regulations, to immediately appeal to the City of Azusa's Personnel Board, for the expansion of duties to the classification of Administrative Services Manager. Such application on behalf of the Administrative Services Manager shall be presented to the Personnel Board no later than August 31, 2011. 3. Administrative Services Manager, Position Affiliation Upon the separation of employment of the current Administrative Services Manager, the Administrative Services Manager's position will move to the Azusa Middle Management Association (AMMA) for representation. F.M. Delach, City Manager Lt. Frank Chavez, President APMA Date Date Pre-Retirement Accrued Sick Leave Draw Down Azusa Police Management Association (APMA) August 1, 2010—July 31, 2015 1) Members of the APMA agree to "draw down" accrued sick leave beginning with the final four years of employment prior to their"normal" retirement date at age 50 and continuing until separation from the City. The initial four years shall be calculated from the calendar year the employee turns 49 and date backward for 4 years. 2) Employees shall "draw down"the maximum amount (of hours) possible each year until the balance (of accrued hours) reaches 1040 hours. The amount converted to cash value may be placed in a qualified tax deferred account (based on then applicable law) or taken as cash. Should the funds be placed into a qualified tax deferred account the proceeds shall be managed by the employee and not the responsibility of the City of Azusa. 3) The accrued hours subject to the "draw down" shall be converted to a cash value based upon the provisions of section 10.5.7.4, 10.5.7.5 and 10.5.7.6 of this MOU (ex. 10 cumulative years of City service, conversion is at 50% cash value; with 20 cumulative years of City service, conversion is at 75% cash value; with 25 cumulative years of City service, conversion is at 100% cash value). 4)r A. For Calendar year 2011 employees subject to the draw down provision will begin drawing down as follows: All amounts previously deferred by the employee through August 31, 2011 will be deducted from the calculated maximum contribution. As of the final pay period in August, previously authorized contributions by the employees to their deferred compensation (457) plan in excess of the monthly City paid contribution will cease. The remaining balance of the calculated maximum will be converted from the employees sick leave balance as of the first pay period in November, 2011 and provided to the employee as cash or a contribution to the employees 457 plan account. B. For all subsequent years of this MOU the conversion shall be as follows: In November of each preceding year the Human Resources Department shall determine for each APMA employee subject to the draw down provision the number of hours of sick leave accrued in excess of 1040 hours and the applicable legal maximum dollar amount that may be contributed into a the employees 457 plan. This information shall be provided to each employee and a determination must be made by employees prior to January 1 of the subsequent year as to whether the dollar value of any excess sick leave time shall be taken as cash or as deferred compensation. Based upon employees determination the City shall place the entire amount into either deferred compensation or salary prior to the second pay period in February. Page 1 of 2 7/21/2011 This sick leave draw down does not terminate or forfeit the APMA member's benefit of such leave accrual up to the time of retirement. The provision is not a cap of sick leave accrual. Page 2 of 2 7/21/2011 • # F� W1 U v 3 * 14' - M cS � ,,.y,'E�,s" 1 sr4f, i -%..wk - r atm r z... ,.'tf '�,a'�#`s Ca + .i zus CONSENT CALENDAR TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: TITO HAES, PUBLIC WORKS DIRECTOR/ASSISTANT CITY MANAGER VIA: F.M. DELACH, CITY MANAGER DATE: JULY 25, 2011 SUBJECT: PROJECT NO. SRTSL-5112(011) — SAFE ROUTES TO SCHOOL PROJECT — TERMINATE AWARD OF CONTRACT TO TSR CONSTRUCTION AND INSPECTION BID AS NONRESPONSIVE, AUTHORIZE STAFF TO AWARD CONTRACT TO MARTINEZ CONCRETE, INC. AND APPROVE A BUDGET AMENDMENT IN THE AMOUNT OF $42,397.00 TO BE FUNDED FROM THE TRANSPORTATION DEVELOPMENT ACT (TDA) FUND RECOMMENDATION It is recommended that the City Council terminate the award of contract to TSR Construction and Inspection bid as nonresponsive, authorize staff to award the Safe Routes to School Project No. SRTSL- 5112(011) to Martinez Concrete, Inc. and approve a budget amendment in the amount of$42,397.00 to be funded from the TDA fund. BACKGROUND On March 21st, 2011, the City Council approved the plans and specifications for the project and the Notice of Inviting bids. The bid opening was conducted on May 5th, 2011 and five bids were received. The following companies and the bid amounts are as follows: No. Company City Bid Amount 1 TSR Construction and Inspection Rancho Cucamonga, CA $139, 135.00 2 Geronimo Concrete, Inc. Los Angeles, CA $156, 775.95 3 MCI Azusa, CA $171, 353.20 4 Freeway Electric Inc. Riverside, CA $239, 039.00 5 All American Asphalt Corona, CA $247, 000.00 The project was awarded to TSR Construction and Inspection at the June 20, 2011 Council Meeting. During the contract preparation process the final Underutilized Disadvantaged Business Enterprises (UDBE) documents were provided by the contractor, staff determined that Good Faith Efforts failed to comply with the UDBE requirements. The UDBE contract goal established for this project is 6.3%. Information provided by TSR Construction and Inspection indicated they obtained 0% UDBE (2 N participation. Even after award of the project, TSR Construction and Inspection did not demonstrate t . they actively and aggressively attempted to meet the UDBE contract goal. Because the UDBE contract goal' is a requirement of the federal funding used on this project, finalizing the contract with TSR Construction and Inspection may result in loss of federal funding. As a result, TSR Construction and Inspection's is not able to honor the requirements of the contract and the award should therefore be terminated. bid is deemed nonresponsive. The next lowest bidder, Geronimo Concrete, Inc. has declined the opportunity to participate in this project due to other contract obligations. Therefore, the third lowest bidder has been selected for the project. Martinez Concrete, Inc. has sufficiently satisfied the UDBE requirements. Staff is requesting the City Council deem TSR Construction and Inspection as a non-responsive bidder and award the project to Martinez Concrete, Inc. Staff has discussed the project with Martinez Concrete, Inc. and if the Council awards the contract by July 25, 2011, the project can be completed prior to the beginning of the school year. FISCAL IMPACT: The actual project cost is $188,489.00, including 10% allowance for potential change orders. The original SRTS federal grant amount was $102,713.00. Because the bids came in above the original amount, staff requested additional funds from SRTS. The SRTS program granted additional funds to totaling $146,091.75. There are sufficient funds in the TDA account to fund the additional $42,397.25 required to complete this project.