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IWA/City Council Agenda ReportAccept the Water Improvement Agreem ent and Bonds for Terra Lago East Tracts 32341-232341-3 32462-2 and 32462-3.January 7 2014Page 2BACKGROUND: Also, on May 22, 2013, the City of Indio Planning Commission held a dulynoticed public hearing to consider the application for the Project. Evidence both written andoral including the staff report and supporting documents was presented at said hearing. At theconclusion of the hearing, the Planning Commission closed the public hearing and continuedthe item to June 12, 2013 Planning Commission meeting. At the conclusion of the June 12,2013 meeting, the Planning Commission directed staff to prepare a resolution to approve theProject with amended conditions.On July 17, 2013, the City Council of the City of Indio conducted a duly noticed public hearingand adopted Ordinance No 1635 for the approval of a Project Master Plan 19-8-06Amendment No. 3) to modify the approved land use regulations development standards and

design guidelines in order to develop the Terra Lago East planned development community.The attached Water Improvement Agreement and Performance Bond and Labor and MaterialBond for aforementioned development guarantees the satisfactory completion of the publicwater improvements within the Terra Lago East planned development community, Tracts32341-2 32341-3 32462-2 and 32462-3.

FINANCIAL ANALYSIS: Not A pplicable.

ALTERNATIVES: Not to approve the Water Improvement Agreement between Indio WaterAuthority and Terra Lago Indio, LLC; and not accept the Performance Bond and Labor andMaterial Bond for aforementioned development.

ATTACHMENT S):A. Vicinity MapB. Water Improvement Agreement and B onds for Terra Lago East


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ATTACHMENT A


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TT CHMENT BInd o Water Authority

Your WaterOur Responsibility.

RECORDED AT REQUEST OF ANDWHEN RECORDED RETURN TO:Indio Water AuthorityCynthia Hernandez, Secretary83101 Avenue 45Indio, California 92201

Exem pt from recording fees pursuant to Govt. Cod. Sec. 27383(Space above for recorder s use)

INDIO WATER AUTHORITYWATER IMPROVEMENT AGREEMENT

DATE OF AGREEMENT:

NAME OF DEVELOPER: Terra Lago Indio LLC, a Delaware limited liability company(referred to as DEV ELO PER')NAME OF PROJECT: K. Hovnanian's Four Seasons at Terra Lae()(referred to as PROJE CT or SUBD IVISION')TRACT NO.: 32341-2. 32341-3, 32462-2, and 32462-3

TENTATIVE MAP RESOLUTION OF APPROVAL NO.OR PLANNING APPLICATION NO.: rdinance No. 1635(referred to as Resolution ofApproval )ESTIMATED TOTAL COST OF IMPROVEMENTS: 1,128,332.50COMPLETION DATE: December 31, 2014

This Agreement is made and entered into by and between the Indio Water Authority, ajoint powers authority, hereinafter referred to as 1WA, and the DEVELOPER.RECITALS

A. EVELOPER desires to construct off-site water improvements for the extensionof its water mains as well as guarantee the satisfactory completion of such work for a projectknown as the K. Hovnanian's Four Seasons at Terra Lago pursuant to the provisions of theSubdivision Map Act of the State of California ( Subdivision Laws ) and the applicable City ofIndio ordinances and IWA requirements.


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B. Pursuant to Ordinance No. 1635, Tentative Parcel Maps 32341 and 32462 hasbeen approved, subject to the Subdivision Laws and the requirements and conditions containedin the Resolution of Approval, for property located at Assessor Parcel Numbers 601-310-025,601-310-027 through 029, 601-310-031, 601-310-032, 601-310-034 through 039, 601-310-045through 51, 601-150-029, 601-270-026 and 601-300-015 ( PROJECT ) and as further describedin the legal description attached as Exhibit A.

C. The Resolution of Approval is on file in the Office of the IWA and isincorporated into this Agreement by reference.

D. The Subdivision Laws establish as a condition precedent to the approval of a finalmap that DEVELOPER must have complied with the Resolution of Approval and must completecertain water improvements, among others, in compliance with City of Indio ( City ) and IWAstandards.

E. In consideration of this Agreement and other good and sufficient consideration,DEVELOPER agrees to enter into this Agreement and promises to install and complete, atDEVELOPER'S own expense, the off-site water improvement work required by IWA inconnection with the proposed subdivision. DEVELOPER has secured this Agreement byimprovement security required by the Subdivision Laws.

F. Complete improvement plans for the construction, installation and completion ofthe improvements described herein have been prepared by DEVELOPER and approved by theIWA Engineer. The improvement plans are on file in the Office of the IWA and are incorporatedinto this Agreement by this reference ( Improvement Plans ). All references in this Agreementto the Improvement Plans shall include reference to any specifications for the improvements asapproved by the IWA Engineer.

G. An estimate of the cost of construction of the improvements according to theImprovement Plans has been made and had been approved by the IWA Engineer. The estimatedamount is stated on Page 1 of this Agreement.

H. The City and IWA have adopted standards for the construction and installation ofsaid improvements. The Improvement Plans have been prepared in conformance with applicableCity and IWA standards in effect on the date of approval of the Resolution of Approval.

1 EVELOPER recognizes that by approval of the final map for this subdivision,the City has conferred substantial rights upon DEVELOPER, including the right to sell, lease, orfinance lots within the subdivision, and has taken the final act necessary to subdivide theproperty within the subdivision. As a result, the City and IWA will be damaged to the extent ofthe cost of installation of the improvements by DEVELOPER'S failure to perform its obligationsunder this Agreement, including, but not limited to, DEVELOPER'S obligation to completeconstruction of the improvements by the time established in this Agreement. The City and IWAshall be entitled to all remedies available to it pursuant to this Agreement and the SubdivisionLaws in the event of a default by DEVELOPER. It is specifically recognized that thedetermination of whether a reversion to acreage or rescission of the SUBDIVISION constitutes

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an adequate remedy for default by the DEVELOPER shall be within the sole discretion of theCity.

NOW THEREFORE, in consideration of the recitals set forth above DEV ELO PER andIWA agree as follows:IWA Approval of Application for Extension of Water Mains.Pursuant to an application made to IWA by DEVELOPER and in consideration of thisAgreement, IWA hereby agrees to extend its water mains from the presenting existingmains or allow such an extension by DEVELOPER subject to the terms and conditionsset forth in this Agreement.

2. EVELOPER'S Obligations to Construct Improvements. DEVELOPER shall:a. At its sole cost and expense, provide construction management, construction

staking, design of water plans and construct and install the off-site public watersystem improvement together will all other appurtenances as set forth in ExhibitB to this Agreement (the Improvements ) based upon preliminaryengineering plans and studies and the Improvement Plans submitted to IWA.This description is intended to roughly outline the scope of the works andimprovements to be designed and constructed in connection with this Agreement.The exact works and improvements comprising the Improvements may change asa result of site requirements, changes in construction standards, geologicconditions, ability to locate adequate source of water pressure and supply,engineering constraints, or other factors. The IWA Engineer, in his or herreasonable discretion, may approve substitute works and improvements to replacesome or all of the works and improvements set forth in Exhibit B to thisAgreement, if such substitute works and improvements would provide thePROJECT services of a similar nature to those provided by the works andimprovements set forth in Exhibit B to this Agreement.

b. Complete by the time established in Exhibit C of this Agreement and atDEVELOPER'S own expense, the Improvements in conformance with theImprovemen t Plans and the IWA standards.

c. Construct such Improvements in full compliance with the approved ImprovementPlans and the requirements of this Agreement, and in accordance with any otherapplicable IWA or City of Indio requirements and conditions, subject toinspection and approval by IWA. Such work shall be undertaken by a qualifiedCalifornia licensed contractor.

d. Furnish the necessary materials for completion of the Improvements inconformity with the Improvement plans and IWA standards.e. Acquire and dedicate, or pay the cost of acquisition by IWA, of all right-of-way,

easements and other interests in real property for construction or installation ofthe Improvements, free and clear of all liens and encumbrances. he

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DEVELOPER'S obligations with regard to acquisition by IWA of off-site right-of-way, easements and other interests in real property shall be subject to aseparate Agreement between DEVELOPER and IWA. DEVELOPER shall alsobe responsible for obtaining any public or private drainage easements orauthorizations to accommodate the PROJECT.

f. omply with the all requirements of the Resolution of Approval and anyamendments thereto, and with provisions of the Subdivision Laws.

3. cquisition and Dedication of Easement of Right-of-Way. If any of the publicimprovement and land development work contemplated by this Agreement is to beconstructed or installed on land not owned by DEVELOPER, no construction orinstallation shall be commenced before:a. The offer of dedication to IWA of appropriate right-of-way, easements or other

interest in real property, and appropriate authorization from the property owner toallow construction or installation of the improvements or work, or

b. The dedication to, and acceptance by, the IWA of appropriate right-of-way,easements or other interests in real property, as determined by the IWA Engineer,or

c. The issuance by a court of competent jurisdiction pursuant to the State EminentDomain Law of an order of possession. DEVELOPER shall comply in allrespects with the order of possession.

Nothing in this Section 3 shall be construed as authorizing or granting an extension oftime to DEVELOPER.

4. ecurity. DEVELOPER shall at all times guarantee DEVELOPER'S performance of thisAgreement by furnishing to IWA, and maintaining, good and sufficient security asrequired by the Subdivision Laws on forms approved by IWA for the purposes and in theamounts as follows:a. To assure faithful performance of this Agreement in regard to said improvements

in an amount of 100 of the estimated cost of the improvements; andb. To secure payment to any contractor, subcontractor, persons renting equipment,

or furnishing labor materials for the improvements required to be constructed orinstalled pursuant to this Agreement in the additional amount of 100 of theestimated cost of the improvements; and

c. To guarantee or warranty the work done pursuant to this Agreement for a periodof one year following acceptance thereof by IWA against any defective work orlabor done or defective materials furnished in the additional amount of 10 of theestimated cost of the improvements.


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The securities required by this Agreement shall be kept on file with the Office of theIWA. The terms of the security documents referenced herein are incorporated into thisAgreement by this reference. If any security is replaced by another approved security,the replacement shall be filed with the Office of the IWA and, upon filing, shall bedeemed to have been made a part of and incorporated into this Agreement. Upon filingof a replacement security with the Office of the IWA, the former security may bereleased.

5. lterations to Improvement Plans.a. Any changes, alterations or additions to the improvement plans and specifications

or to the improvements, not exceeding 10 of the original estimated cost of theimprovements, which are mutually agreed upon by the IWA and DEVELOPER,shall not relieve the improvement security given for faithful performance of thisAgreement. In the event such changes, alterations, or additions exceed 10 ofthe original estimated cost of the improvements, DEVELOPER shall provideimprovement security for faithful performance as required by Paragraph 4 of thisAgreement for 100 of the total estimated cost of the improvement as changed,altered, or amended, minus any completed partial releases allowed by Paragraph 7of this Agreement.

b. The DEVELOPER shall construct the improvements in accordance with the IWAstandards in effect at the time of adoption of the Resolution of Approval. IWAreserves the right to modify the standards applicable to the PROJECT and thisAgree ment when necessary to protect the public health safety and welfare.

6. nspection.a. EVELOPER shall at all times maintain proper facilities and safe access for

inspection of the Improvements by the IWA inspector and to the businesses orresidences wherein any work is in progress. IWA shall have the right to enter anyconstruction site at any time to inspect the work or the progress of construction ofthe Improvements that are the subject of this Agreement. Upon completion of thework the DEVELOPER may request a final inspection by the IWA Engineer, orthe IWA Engineer's authorized representative. If the IWA Engineer, or thedesignated representative, determines that the work has been completed inaccordance with this Agreement, then the IWA Engineer shall certify thecompletion of the Improvements for acceptance by IWA. No improvements shallbe finally accepted unless aspects of the work have been inspected anddetermined to have been completed in accordance with the Improvement Plansand IWA and if applicable City standards. DEVELOPER shall bear all costs ofinspection and certification. The inspection by IWA of the construction forconformance with the Improvement Plans shall not be deemed to confer liabilityon IWA or the City or otherwise place the responsibility for properly constructingand inspecting the Improvements upon [WA.

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b. 1WA is not responsible and does not own the Improvements until they areinspected and approved and accepted by IWA and all fees and charges associatedwith the construction of the Improvements and/or other fees owed by Developerto the IWA are paid in full. Until such time, DEVELOPER is responsible for theImprovements and is liable for all damage to said facilities. The Developer shallindemnify IWA, its governing board, officers and employees for any and allclaims of any kind relating the construction of the Improvements incurred prior tothe 1W A s acceptance of said facilities.

c. At no time during construction or prior to 1WA's acceptance of the Improvementsconstructed by DEVELOPER shall DEVELOPER, its agents or employees,populate or use the Improvements for any unauthorized purpose, or populate theImprovements with non-potable water or any other chemical or substance notauthorized in writing by TWA.

7. elease of Securities. Subject to approval by the IWA Board, the securities required bythis Agreemen t shall be released as follows:a. Security given for faithful performance of any act, obligation, work or agreement

shall be released upon the final completion and acceptance of the act or work,subject to the provisions of subsection (b) hereof.b. The IWA Engineer may release a portion of the security given for faithful

performance of improvement work as the improvement progresses uponapplication therefore by the DEVELOPER; provided, however, that no suchrelease shall be for an amount less than 25 of the total improvement securitygiven for faithful performance of the improvement work and that the securityshall not be reduced to an amount less than 50 of the total improvement securitygiven for faithful performance until final completion and acceptance of theimprovement work. In no event shall the IWA Engineer authorize a release of theimprovement security, which would reduce such security to an amount below thatrequired to guarantee the completion of the improvement work and any otherobligation imposed by this Agreement.

c. Security given to secure payment to the contractor, his or her subcontractors andto persons furnishing labor, materials or equipment shall, six months after thecompletion and acceptance of the w ork, be reduced to an amount equal to the totalclaimed by all claimants for who lien have been filed and of which notice hasbeen given to the legislative body, plus an amount reasonably determined by theIWA Engineer to be required to assure the performance of any other obligationssecured by the Security. The balance of the security shall be released upon thesettlement of all claims and obligations for which the security was given.

d. No security given for the guarantee or warranty of work shall be released until theexpiration of the warranty period and until any claims filed during the warrantyperiod have been settled. As provided in paragraph 12, the warranty period shall

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not commence until final acceptance of all the work and Improvements by theIWA Bo ard.

e. The IWA may retain from any security released, an amount sufficient to covercosts and reasonable expenses and fees, including reasonable attorney s fees, ifthe City is required to und ertake any action related to the security provided (suchas ensuring the performance of the work, actions required related to liens filed orotherwise enforce the p rovisions of this section).

f. An y statute of limitations with respect to the obligations of DEVE LOPE R shallnot apply to any bonds or other forms of security provided pursuant to thisAgreement. The Surety s liability under any bonds or other forms of securityprovided pursuant to this Agreem ent shall be released only upon final com pletionand IWA s acceptance of the work required pursuant to this Agreement. Theexpiration of any statute of limitations with respect to DEVELO PER shall not baran action against the Surety under the bond or any o ther form of security providedpursuant to this Agreem ent.

8. Injury to Public Im provements. Public Property o r Public U tility Facilities.DEVE LOPER shall replace or have replaced, or repair or have repaired, as the case maybe, all public improvements, public utility facilities and surveying or subdivisionmonuments which are destroyed or damaged as a result of any work under thisAgreement. DEV ELOPER shall bear the entire cost of replacement or repairs of any andall public or public utili ty property dam aged or d estroyed by reason of any w ork do neunder this Agreement, whether such property is owned by the United States or anyagency thereof, or the State of C alifornia, or any agency o r political subdivision thereof,or by the IW A o r any public or private utility corporation or by any com bination of suchowners. Any repair or replacement shall be to the satisfaction, and subject to theapproval, of the IWA Engineer.

9. Limitations of Damages. Until such time as all Improvements required by thisAgreement are fully completed and accepted by IWA , and IWA authorizes connection ofall or any part of the PROJECT to IW A s water system, DEVE LOPER shall not allow orrequest permits for occupancy of the PRO JECT o r any portion thereof. IW A shall not,nor shall any officer or em ployee thereof, be liable or responsible for any accident, lossor dam age, regardless of the cause, happening or occurring to any third pa rties in privitywith the DEVELOPER prior to the authorization by 1W A to conn ect the PROJECT orany unit or portion thereof to IWA s public water system, in accordance with IWA srules and regulations. All such risks shall be the responsibility of and are hereby a ssumedby DEVELOPER.

10. Permits. DEVELOPER shall, at DEVELOPER S expense, obtain all necessary permitsand licenses for the co nstruction and installation of the improvem ents, give all necessarynotices and pay all fees and taxes required by law .

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11. efault of DEV ELOPER.a. Default of DEVELOPER shall include, but not limited to, DEVELOPER S failure

to timely commence construction of this Agreement; DEVELOPER S failure totimely complete construction of the Improvements; DEVELOPER S failure totimely cure any defect in the Improvements; DEVELOPER S failure to performsubstantial construction work for a period of twenty (20) calendar days aftercommencement of the work; DEVELOPER S insolvency, appointment of areceiver, or the filing of any petition in bankruptcy either voluntary or involuntarywhich DEVELOPER fails to discharge within thirty (30) days; thecommencement of a foreclosure action against the PROJECT or a portion thereof,or any conveyance in lieu or in avoidance of foreclosure; or DEVELOPER Sfailure to perform any other obligation under this A greement.

b. The IWA reserves to itself all remedies available to it at law or in equity forbreach of DEVELOPER S obligations under this Agreement. The IWA shallhave the right, subject to this section, to draw upon or utilize the appropriatesecurity to mitigate TWA damages in event of default by DEVELOPER. Theright of TW A to draw upon or utilize the security is additional to and not in lieu ofany other remedy available to IWA. It is specifically recognized that theestimated costs and security amounts may not reflect the actual cost ofconstruction or installation of the improvements and, therefore, TWA damages forDEVELOPER S default shall be measured by the cost of completing the requiredimprovements. The sums provided by the improvement security may be used byTWA for the completion of the Improvements in accordance with theImprovemen t Plans and specifications contained therein.

c. In the event of DEVELOPER S default under this Agreement, DEVELOPERauthorizes TWA to perform such obligation twenty 20) days after mailing writtennotice of default to DEVELOPER and to DEVELOPER S Surety, and agrees topay the entire cost of such performance by IW A.

d. At the sole discretion of IWA, IWA may take over the work and prosecute thesame to completion, by contract or by any other method IWA may deemadvisable, for the account and at the expense of DEVELOPER, andDEVELOPER S Surety shall be liable to IWA for any excess cost or damagesoccasioned TWA thereby; and, in such event, IWA, without liability for so doing,may take possession of, and utilize in completing the work, such materials,appliances, plant and other property belonging to DEVELOPER as may be on thesite of the work and necessary for performance of the wo rk.

e. Failure of DEVELOPER to comply with the terms of this Agreement shallconstitute consent to the filing by TWA of a notice of violation against all the lotsin the PROJECT, or to request that the City rescind the approval or otherwiserevert the SUBDIVISION to acreage. The remedy provided by this Subsection cis in addition to and not in lieu of other remedies available to 1WA.

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DEVELOPER agrees that the choice of remedy or remedies for DEVELOPER Sbreach shall be in the discretion of IW A

f. In the event that DEVELOPER fails to perform any obligation, hereunder,DEVELOPER agrees to pay all costs and expenses incurred by IWA in securingperformance of such obligations, including costs of suit and reasonable attorney sfees.

g. The failure of [WA to take an enforcement action with respect to a default, or todeclare a breach, shall not be construed as a waiver of that default or breach orany subsequent default or breach of DEV ELOPER12. Warranty. DEVELOPER shall guarantee or warranty the work done pursuant to this

Agreement for a period of one year after final acceptance by the IWA Board of the workand Improvements against any defective work or labor done or defective materialsfurnished. Where certain improvements are to be constructed in phases or sections, theone year warranty period shall commence after IWA acceptance of the last completedimprovement, If within the warranty period any work or improvement or part of anywork or Improvement done, furnished, installed, constructed or caused to be done,furnished, installed or constructed by DEVELOPER fails to fulfill any of therequirements of this Agreement or the Improvement Plans and specifications referred toherein, DEVELOPER shall without delay and without any cost to IWA, repair or replaceor reconstruct any defective or otherwise unsatisfactory part or parts of the work orstructure. Should DEVELOPER fail to act promptly or in accordance with thisrequirement, DEVELOPER hereby authorizes IWA at [WA s option, to perform thework twenty (20) days after mailing written notice of default to DEVELOPER and toDEVELOPER S and agrees to pay the cost of such work by IWA. Should the IWAdetermine that urgency requires repairs or replacements to be made before DEVELOPERcan be notified, [WA may, in its sole discretion, make the necessary repairs orreplacement or perform the necessary work and DEVELOPER shall pay to IWA the costof such repairs.

13. DEVELOPER Not Agent of IWA. Neither DEVELOPER nor any of DEVELOPER Sagents or contractors are or shall be considered to be agents of IWA in connection withthe performance of DEVELOPER S obligations under this Agreement.

14. Injury to Work. Until such time as the improvements are accepted by IWA,DEVELOPER shall be responsible for and bear the risk of loss to any of theimprovements constructed or installed, Until such time as all improvements required bythis Agreement are fully completed and accepted by IWA, DEVELOPER will beresponsible for the care, maintenance of, and any damage to such improvement. IWAshall not, nor shall any officer or employee thereof, be liable or responsible for anyaccident, loss or damage, regardless of cause, happening or occurring to the work orImprovements specified in this Agreement prior to the completion and acceptance of thework or improvements. All such risks shall be the responsibility of and are herebyassumed by DEVELOPER.

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15. Other Azreements. Nothing contained in this Agreement shall preclude IWA fromexpending monies pursuant to Agreements concurrently or previously executed betweenthe parties, or from entering into Agreements with other DEVELOPERs for theapportionment of costs of water and sewer mains, or other improvements, pursuant to theprovisions of the IWA ordinance providing therefore, nor shall anything in thisAgreement comm it 1WA of any such apportionment.

16. DEVELOPER S OBLIGATION TO WARN PUBLIC DURING CONSTRUCTION.Until final acceptance of the Improvements, DEVELOPER shall give good and adequatewarning to the public of each and every dangerous condition existent in saidimprovements, and will take all reasonable actions to protect the public from suchdangerous condition.

17. Vesting of Ownership. DEVELOPER shall promptly dedicate or grant to IWA, withoutcharge, any and all rights, rights-of-way or other property interests necessary to IWAsownership and control of the Im provements to be constructed pursuant to this Agreem entwhich are on property owned or controlled by DEVELOPER. Upon acceptance of thework on behalf of IWA and recordation of the Notice of Completion, ownership of theimprovements constructed pursuant to this Agreement shall vest in IWA. DEVELOPERshall execute any documents to effectuate this provision.

18. Final Acceptance of Work. Acceptance of the work on behalf of IWA shall be made bythe IWA Board upon recommendation of the IWA Engineer after final completion andinspection of all improvements. The IWA Board shall act upon the Engineer srecommendation within thirty (30) days from the date the IWA Engineer certifies that thework has been finally completed, as provided herein, or at such other time deemedreasonable. Such acceptance shall not constitute a waiver of defects by IWA.

19. Indemnity/Hold Harmless. IWA or any officer or employee thereof shall not be liable forinjury to persons or property occasioned by reason of the acts or omissions ofDEVELOPER, its agents or employees in the performance of this Agreement.DEVELOPER agrees to defend, indemnify and hold harmless TWA, its officials andemployees from any and all claims, demands, causes or action, liability or loss of anysort, because of, or arising out of, acts or omissions of DEVELOPER, its agents oremployees in the performance of this Agreement, including all claims, demands, causesof action, liability, or loss because of, or arising out of, in whole or in part, the design orconstruction of the Improvements. This indemnification and agreement to hold harmlessshall extend to injuries to persons and damages or taking of property resulting from thedesign or construction of said SUBDIVISION, and the Improvements as provided herein,and in addition, to adjacent property owners as a consequence of the diversion of watersfrom the design or construction of public drainage systems, streets and other publicimprovements. Acceptance by the IWA of the Improvements shall not constitute anassumption by the IWA of any responsibility for the design or construction of theSUBDIVISION or the Improvements pursuant to the approved Improvement Plans ormap, regardless of any negligent action or inaction taken by the TWA in approving theplans, unless the particular improvement design was specifically required by IWA overwritten objection by DEVELOPER submitted to the IWA Engineer before approval of

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the particular improvement design, which objection indicated that the particularimprovement design was dangerous or defective and suggested an alternative safe andfeasible design. After acceptance of the Improvements, the DEVELOPER shall remainobligated to eliminate any defect in design or dangerous condition causes by the d esign orconstruction defect, however DEVELOPER shall not be responsible for routinemaintenance. Provisions of this paragraph shall remain in full force and effect for tenyears following the acceptance by the IWA of Improvements. It is the intent of thisaction that DEVELOPER shall be responsible for all liability for design and constructionof the Improvements installed or work done pursuant to this Agreement and that IWAshall not be liable for any negligence, nonfeasance, misfeasance or malfeasance inapproving, reviewing, checking, or correcting any plans or specifications or in approving,reviewing or inspecting any work or construction. The improvement security shall not berequired to cover the provisions of this paragraph

20. Sale or Disposition of Project. Sale or other disposition of this property will not relieveDEVELOPER from the obligations set forth herein. If DEVELOPER sells the propertyor any portion of the property within the PROJECT to any other person, theDEVELOPER may request a novation of this Agreement and a substitution of security.Upon approval of the novation and substitution of securities, the DEVELOPER mayrequest a release or reduction of the securities required by this Agreement. Nothing inthe novation shall relieve the DEVELOPER of the obligations under this Agreement forthe work or improvement done by DEVELOPE R

21. Time of the Essence. Time is of the essence of this Agreement.22. Time for Completion of Work/Time Extension. DEVELOPER shall completeconstruction of the improvements required by this Agreement in accordance with the

schedule of performance attached as Exhibit C hereto and incorporated herein ( Scheduleof Performance ). The IWA, in his or her sole discretion, may authorize acceptance ofindividual Improvements to accommodate phasing of PROJECT development; provided,however, that production, storage and transmission needs must be complete and adequatefor each phase of PROJECT development before they are considered for acceptance. Inno instance will water service be provide by IWA to the PROJECT, or any part or phasethereof, without corresponding sewer service. IWA will not approve or accept any on-site improvement, or permit any connection to the Improvements, until all relatedimprovements have been completed and accepted by IWA. In the event good causeexists as determined by the IWA Engineer, the time for completion of the improvementshereunder may be extended. The extension shall be made by writing executed by theIWA Engineer. Any such extension may be granted without notice to DEVELOPER'SSurety and shall not affect the validity of this Agreement or release the Surety or Suretieson any security given for this Agreement. The IWA Engineer shall be the sole and finaljudge as to whether or not good cause has been shown to entitle DEVELOPER to anextension. Delay, other than delay in the commencement of work, resulting from an actof IWA, or 'by an act of God', which DEVELOPER, could not have reasonable foreseen,or by storm or inclement weather which prevent the conducting of work, and which werenot caused by or contributed to by DEVELOPER, shall constitute good cause for anextension of time for completion. As a condition of such extension, the IWA Engineer


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may require DEVELOPER to furnish new security guaranteeing performance of thisAgreement as extended in an increased amount as necessary to compensate for anyincrease in construction costs as determined by the IWA Engineer.

23. Legal Responsibilities. The DEVELOPER shall keep itself informed of all local, Stateand Federal Laws and regulations which in any manner affect those employed by it or inany way affect the performance of its obligations pursuant to this Agreement. TheDEVELOPER shall at all times observe and comply with all such laws and regulations.The IWA, and its officers and employees, shall not be liable at law or in equityoccasioned by failure of the DEVELOPER to comply with this section.

24. No Vesting of Rights. Performance by DEVELOPER of this Agreement shall not beconstrued to vest DEVELOPER S rights with respect to any change in any capacity orservice fee or regulation of IWA.

25. Non-disturbance of Maps and Obligations. This Agreement does not rescind, replace, orotherwise affect any obligation that the DEVELOPER may have under any map recordedpursuant to the Subdivision Laws to complete the design and construction of anyimprovements, nor does it alter any obligation to the DEVELOPER may have under anysuch map to dedicate or otherwise transfer any real property or improvements to IWA orto any other public entity. Performance by DEVELOPER of this Agreement shall not beconstrued to vest DEVELOPER S rights with respect to any change in any capacity orservice fee or regulation of IWA.

26. Assignment. This Agreement may not be assigned by DEVELOPER in whole or in partwithout the prior written consent of the IWA. If assigned by DEVELOPER pursuanthereto, this Agreement shall apply to, bind and inure to the benefit of the Parties and theirrespective successors and assigns.

27. Non-Liability of Officials and Employees of IWA. No official, representative, agent,attorney, consultant or employee of IWA shall personally be liable to the DEVELOPERin the event of any default by IWA under the terms of this Agreement.

28. Notices. All notices required or provided for under this Agreement shall be in writingand delivered in person or sent by mail, postage prepaid and addressed as provided in thisSection. Notice shall be effective on the date it is delivered in person, or, if mailed, onthe date of deposit in the United States Mail. Notices shall be addressed as followsunless a written change of address is filed with the IWA:Notice to IWA:

General ManagerIndio Water Authority83101 Avenue 45Indio, California 92201

Notice to DEVELOPER:

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Terra Lago Indio, LLCAttn: Division President2525 Campus D riveIrvine, CA 92626

29. Severability. The provisions of this Agreement are severable. If any portion of thisAgreement is held invalid by a court of competent jurisdiction the remainder of theAgreement shall remain in full force and effect unless amended or modified by themutual consent of the parties.

30. Captions. The captions of this Agreement are for convenience and reference only andshall not define explain modify limit exemplify or aid in the interpretationconstruction or m eaning of any provisions of this Agreem ent.31. Litigation or Arbitration. In the event that suit or arbitration is brought to enforce the

terms of this Agreement the prevailing party shall be entitled to litigation costs andreasonable attorney s fees.32. Governing Law; Venue. This Agreement and any dispute arising hereunder shall begoverned by and interpreted in accordance w ith the laws of the State of California, withvenue in R iverside County Superior Court.33. Am endment. This Agreement m ay be am ended or mo dified only by a w ritten instrumentapproved and signed by the Parties.34. No Third Party Beneficiaries. No person or entity shall be deemed to be a third partybeneficiary hereof and nothing in this Agreem ent (either express or imp lied) is intendedto confer upon any person or entity, other than 1W A and the DEVEL OPER , any rights,remedies, obligations or liabilities under or by reason of this Agreem ent.35. Severability. The provisions of this Agreement are severable. If any portion of thisAgreem ent is held invalid by a court of com petent jurisdiction, and the intent, rights and

obligations of the Parties hereunder remain intact without substantial change theremainder of the Agreement shall remain in full force and effect unless amended ormodified by the mutual consent o f the parties.

36. Incorporation of Recitals. The Recitals to this Agreem ent are hereby incorporated intothe terms of this Agreem ent.

37. Entire Agreemen t. This Agreeme nt constitutes the entire Ag reement of the parties withrespect to the subject matter. All modifications, amen dments, or w aivers of the terms o fthis Agreem ent mu st be in writing and signed by the appropriate representatives of theparties. In the case of the IWA, the appropriate party shall be the 1WA M anager.

[Signatures continued on next page]

13


17/44

IN WITNESS WHEREOF this Agreement is executed by IWA, by and through itsMayor.DEVELOPER*TERRA LAGO INDIO, LLC,a Delaware limited liability company

INDIO WATER AUTHORITY

By:Its:By: . Hovnanian Terra Lago

Investment, LLCa California limited liabilitycompany, its Manager

Indio Water AuthorityName:Title:

By:Name:Title:

ATTEST:

Secretary

(Proper Notarization of DEVELOPER S PPROVED AS TO FORMsignature is required and shall be attached)

General Counsel

4


18/44

EXHIBIT

LEG L DESCRIPTION

5


19/44

=LSIM'S ,141414

LINAMLIKCLIMPV..440

kW:WM C I F 1110 1111 1

OP

IN THE ..7;TY OF IND1C, ; )IINTY Or R SI Ali. AL:FDNIAWATER IMPROVEMENT PLANSTRACT 32341-2 K HOVNANIAN COMPANIES OF CALIFORNIA INC.

LC TU IN A f' ,fiTtUl CF :ECCNS 17 it IB, LaJIH, AANK.r. a C.Sr s

RA OF BLARING

DICHIL Kmaw* 1DI 6 Ad-EilT

. 4 1 . 2 1 7 4 4 4 1 74 4 4 . 1 .

ft e :40WarAuthority I tncr44 41 4 0 4 4 4 1 1 4 43. 7, t 4143 1 14 OLL. ..447

41 :

-.0. 11 VIMOI 4.01.101..00


20/44

XIV; dry.,

110raw

....Sr 18,../.4 1 1 11151 .1 za.r.v.zoin,

i . .1140:1/10;: g, 4.06.hasof

Z.Zeik

WS;

174

, .1 r..inkcinn, Am... aza moi-sZe.aLank ',el .6...;*; ezn;- rng,, Tar,

ing:V 3 Water Authority i C' 1110 14 ;46:5

GENERAL WATER NOTES BBREVIATIONS EGEND ORK TO BE DONE LEGEND

r z*ra 1.e ...AA .61:ann= 14 MP. ITIKF.fre r= 4,,CnIM1 inrnr.rant

1.4iN.tYfT;ri;1;arl

I : 1 4 . 1 . . an. G i i . r . . .1740 4rg-;: 't:17:: ;I:VZed.r.;;,..aeru AD . 3+1 ar.. Ran T..t.;:irrIttvg:dra..1114:111.11..r.1511 a.w.

e- .ski. z.Irriel.Z.N.,1...;

4P.


21/44

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NPAPVA7 I...

e Ptt4 ,4 1 1 m " 1 7 1 .7?, ;71 ,

2 8 V3-;; HO l i14 \g4

TURF L Poi it I. r

7:::7 7 ". 7 :1 1 1 1 1 T : r. . 1 . NG.R T O . T O L L M O E.BC -T3F -202 ).4 .1 ;

?KAM

N E...MC A' MC 1. Lir


22/44

IN 1-E CITY OF irt)in, COLP NOF RIVERS:DE 5TACI: OF CALIFORNIA`WATER R.R.17R OVEM LANS--RAci- 3234'1-3 X FiCSVNAMAN COMPAMES O CALZFORNEA. 1740.LOCAILD 1N A ; PCRINCIN 4r SECTICt4; 1 8 20, rONS-11F: .5 SCUM, LAST

struhiAnY or cusurrrrias

;; ;;;;;;41; A ; i i ;; ;7 7 7

.. . .r s m o

BA=OF BEAMING2-19. 6

BENCHMARK

tad. W ater Authorityi3 Eat

: MIT401I OF AESPONSVILE CHARM

I a `ERtOM Mt 1 21i M16 4 oai s


23/44

Xrt 1 4..GX,IXM .WAX.4.41.41,4c3 , 4 4 4 3 4 4 4 4 - 4 .,4.44.4

on ow :WAN..40 4441.9 44.

w E

ABBREVIATIONS

4,,,,,, r .4 . . X4 I1.110 1.....f..i.nclir 1

fi. ...1. CrAlre4,4If ..41101 W 4 4 4X..XIr LEGEND 44,49,a4,0.1 . 4 . 44 reX,4 4 444 4 4 . 4 . WORK TO BE DONE LEGENDS 1 1 1 - 3 . . rrowelw. . VW.r.:4 1,441 Ork 1.4...144,444.4I INX14444 au:4,1,am44.4 1rttWer.4.1XXv1SN.L U r

44 :a.

"IXit4. 4:4,4.4.,..14.44,444 11.

4rt

GENERAL WATERN O T E S

4..11.,0444r p.axit.4.414.46-

Pow I. o< 11..r. ..6wownw4wrws wwwwJ- ..ww, 4 4 . .4 4 4 4 4 4 . 1 4 4 i e w r o rd . 4 4 1 4 , 4 4 1 .4 4 4 4 4 , 4 _ 4 . 1 6 44 . r 4 . 44 44 . 1 . 444X X II . KiX .

.II1V 4:444441x.. r

'I 44.44 4.44.4441.P . . 46:11,4 4.14. 4444. r 4 . 0 144 x i A m ur, .....424.71144 textesewars was To ww

w 44 41,414rx

-4,114Xkr 4444 ar.

'AKA. Iex;X....xl....141 4,.. 4..D. 4.44.4...arA44444m..xerirr 41: 444.44Xer...1211xr,,sxr.mxr4

flochs Water Authorttyl---. 7eFa orrxXea.4.444 tx4 4 1 . 4 4 ,1.44.4 .,44

7 / /9X 4 4 4 4 4frr424.44 V101,3


24/44

k

ro ksspktut 01 VATitauwe P 5 9 L EPlt21 J srms

1.01 i7D1 7X,StLI

WM 00 340 5.07 0000


25/44

10e0 4103 144

Fett4E eke1 . . . 1 'MA11GL 1 MAniVeXt.glelean- P R O M E

1 3 4

4 3.11

NOW.S.11

Fl3Fna o Watar Authorityij

r. 17 otowri.4.2L S. W7 7-I . . . . = 7 . 1.7.7=. S- ,

7 .44MUL1I0I :w... Morro rar owl .^-nyial .4 el i r d .

xq

e W IMX r ITC / 1 .r s a r k r t o r Im A t . .

.%7 , :..

Mai? V iAr VeenM E V t e e dbtG L RT

1 4 : 0 4 1 S . Z 1 1


26/44

AM

rwrur S C L E.e.V.Tivtx 1

caloteuceoh ernes

ft ilftft aft. ftr ft

g 1,0 J.,. .e,

4SIVS Oar.

Ule N~ my raw weetieV. FI-44DIG 4 ERT

4ROW 1 17

1{ {111..1.rd an f

nd o Water Atrthorttyl


27/44


28/44

Pr a ier I

ABBREVIATIONS

rs rgrz 1 0 61n

4 . 27 W.P10.ra

Ih r H CITY OF INI./13, COUNTY RIVERSIDE. SIAIL Or CA, IFORNT.AWATER Et :':74.0VEMIF.ri...117

ENTRY ROAD - TRACT 32482-1..?:ATED IN A PORT 4 14 OF Itzts la S r . I F 'To, AI GE 8 EAra 5 S IA

silEtr 011: 101amoor

BASES OF BEARINGVok,. saiA, 1.3..CL141r;

IN=BENCHMARK

1Y rge wow. .- gafTr

i ,es

rArma , r n x

L iFtGLAILOON OF RISPONIFlitt CHARGE

1i /I_V A - 16,no: MT AOND .-,Ind:o Water Authorityl .Fr r2

s-stsittF 4I FEr


29/44

1/KCA iEDebingiMOUE VIC 8. 52larYte:EAinkmar I milrt SCRSN M I 2 1 1 1 4 4;COMM, On'M I C R

02071301tatth=4

rd . El. rm

;;

RO.TOM-Alki r ,

AP R.IO13L14: A

MOM WO NWTM1T U tar

s o = m t

1 1 9 1 RA L A D O M O W R YAL M VI EW

ncto Water Authority E N T R Y R O A D14 L= I r =I =C hreWATER M P R O V E M E N T P L A N

utia re ,1 2 1 7 6rw S---4,11.84;;


30/44

TRACT 5242

1 4111 COWawLf./

IX MOV DatkiNP

r AErt INCIar

IN TI - r :NDIO. COU\ITY orprdASME, STATE AL:rorNAWATER IMPROVEMENT PLANSTRACT 32482-2 K HOVNANIAN COMPANIES OF CALIFORNIA INC.

nc4Tco 1 1 1 A / 1:WION Or 5Znioo5 17 t ; 1 1 1 chralr 5 swAJA . Roia a EAS1 c A O


31/44

ML er f Itt0.,'50.0,4 tY.rtnewsliatt NZ/1,1Yr.;..far-..010.....::.

0,04i01:)0 0.00 00014111 ili9C

Anilhav

GENER L W TER NOTES

VS 0000orr.a-twrr.1.000,114rfVQkYT

rrarr, ay., Ir. h., h. 0._ - rtIrialwen

1 1 7 1 7 .r - l t r. 110,.....01,*0 1 1 1 1...ba lArairk0 au:111.11.War. 14Aretsara ot re0.0000Pivarirras do,Irior0r.. rhr101 v. 1..

b ell 1004101., de412. grv4alt *Qr.. 054,..10,InC V0f 41116 t-Sr. t

t17 ritatr;r 9R 0,.-.1 it rr...1.Of.Arrigriirrr 100morrl.rrare004....11

t0sratl-.,- W. rJorrE .00*640151.0V.i... I,We 0000:1 .01 VekStrta1000 011 r :. t1.. IrmYran...01:0,4:.

09.0 ...40,00,M.:1. 0.000,0,nr,-.41,2,Merr. fir .4 1101,,,011,00x0 0000:: art rpt.:,,

r grark re20 I000ryry d.t.r00tr.BI 011 NM rraifir rearta .0,00. 44.900,0r ttrr rit O r s an 0 C= _ t v i1 4 7 n 1 f 4 T 4 7 4 : 1 , A T,

1,4,4 oar. kEerkn.14,1,1M110. Art LVVt0r.4,010, :Aso VI he:

BBREVI TIONS LEGEND WORN TO BE DONE LEGEND

Ags7717 1

oirra.lorri,...rirtrdarollivwr.

tr.* F Y00d.0111.1 001.111W10111M

*so 1.71.7,7

-Ind. Water Authority 5-1.1,101,.'+41;3101.4 17.3

7475 FC-Efn ANDAflaREV1,110,1t


32/44

35

. M A C t P P M9,1144

=- en ..0.1111 ..I NAM3 .44nsija {kW _NE 1. ,. T :1.tv. Intro Water Authority .--TRW 107-. -- I1 2' 7: 1 1O.< -E.M e T , 4 - r r i /

1':-'_... .. --7:Ii. - - - , -s - /r . , 5 . 7 : : . 1 1 , , 7 - . . : 1,t ' 1A3,:rt2;W1,71,,,':"4"..:.,/ 14 14, .L.;..7:.....; 5 , 11t = 4 1 ::* 4,' r.; ,..7FK.

;A

29t: /SAE ' ---. . . - .. 5 6 i 4-.-1.- ="7. ."".\

' . I ' ' .,7,W.1.1zt.., ....'41, 42/ 1.,, . . , . . . - 'y , . . ....,.. ...'"1.64,:,=-74,e' in,,It i:., 7. n

.. l t r i v i , -.- ' :, z - . . .H -.. 1 % , . . z z , -...

. ; : . : . : . . . . -/ 3 11 =II nk-7,- 44I . .4::;:47. -22,- ...,. -,. . . 7 , : : ' F " ' .y. .. : 7 4 4 ,

r a. Tso- 011. la r0. RA IN .. 54/..41.14,,2.1.457....\' ' ', +4;..,47 ; r * F .7..ltrtz. ,',ral1 i...- . ' - '.'''''. r 74 ' ', .4-74,7., 5 2 0.44"r ' 3 6 : 0/ p'C. ,Ittr.r.7 4444.--r -. 0,:

: 51 o iv/-14 ,444,'w ':'j'T.'":j7=" . :/t . : , t , 4 : 7 ) . . , .n. , v A n d

122 1 ' .:;2.4',4.....M O M P r a t ....' ' ., , , . .Wlrhtt e -Y. tv re .. : - ,p . ? . . .. . . . , .m: . . . f . , 4,::-.,,-- :iii:, -t a i i y .,v . i - '\ Inm,.).-- -

1&:,iri. sv,,,. . ,6 1 , " 'I. :505w ming.. .t . , . . . / . . . . -

' -1.--'1.-71 '6il 'V-c ,'AuiPl.-" itr,e7r-v- '''14

56

+ 1 4 P I P t .rft'44

I L L I A A A T I Q N Q V I R E S P C N

01a4- ER TM A X


33/44

AMWAY 01. cluOrmis

n -en

r :

CliLct( 0.JAN .'2 LA O ILY Ati tW

Gt. t 1(11.;

r7r

w m o r _ s

LOCATCN / t OP

fcsccaltkimEr .P.tNILJEL

BIELALdakkke m IMPIMIOLE CAM=

TRACT 32462-3,4tWaterAlihnnry

1#444EMPI hANTRACT .113.141.4

fiT14.1.0011.21 . 1 . a1 1 4 1 1 1 1 1 T

RAMS Of REARM;

B E N C H M A R KYr o w

:N "1-k. ouNiv CF RIARE DE, 71 C,A-1i- 3-\ IAW TER IMPROVEMENT PL NSTRACT 32462-3 TERRA LAO INDIO LLC

LOCA1C9 IN PORT E:-:DA5 '7 k tfl I6415rIT S 59.11+. RAGE 6 EAST. 5 9 M.


34/44

GENERAL WATER NOTES Attakevtanows LEGEND WORK TO DE DONEozsa.70. sr

l e ePa: .01 el, 3 eree,...Val ra

Pes rer,.....9:...-...eererreee egleree .4r Mw e e r W a w a . er 01re eer.

tr. Mrre. e PL I nm a 0Lerral e, is- fee., ere. er n r e r e eeeree. . . .

rel f rerr

V1 1 1 0 .1 1 1 1 1 .1 1 1141rireellar.. lea re

erere..., et e er..1 III .xs

seAre t ie r r rebereeN Y m e .e.are.. : ..

ra r ritearerneellekiarreraillrer Virgo.

kere-berik

rree4.1. er TRACT 3242-3nd;c1VVater AuthoR P1 11

lkaa asaa-aswu.enL.eWM& LeaErADS AtMonelENA7101411


35/44

O

WOE'NO140

_11 ;MY3-

M

4 34 . 1 1 4 1 3 13 .11113441.1 34.3314.13 41;Indjo VVPror Aar:hang I okra /3.63-133.1,44431[2 LLDMLIIKLDIA UN T 14411413116 be*43 84131. tilt C3,411.41161144..

TRAL 2ia2-3

4:1313=.1.LCSinW 14 441S6PVII I3treltI i47LAr Ar4 zlirroaktogi..1 1 1 b 1 1 R1 itt2:1 1ft

akr77340

iWA era? a110410. 0. 14. 001

ERPERNO WAYW 'A -12' DIPWATER

rz

UNVD

*NO 1.0 111113V4114.1413NY

- - 4 4 4 . 4P 44.LL. I

C .A R E APO WA YUNE 1Ze 1 2' MR WATER


36/44

e L Y

tt1

8 3 6

LINE Er

: 1

tam AO 343 NCO

410 3Pay.0 6 . 4 0 1

tun: 'N

E M T7Ar n if ik

sre

O O

r

STA72ONA P1 AroLiNE 6 -C GIP WATER

N o rv : van ,Oa N N O .tx.rock i.r.f EN1. 0 t. tuo.o.owime

WaterAuth oncy

119/ . .11

rPACT 3244124


37/44

49 n44 e a ae V I S k . 1 , 1 .

\ ecatrn.niftin

giquialr

16 ; .MO

rAtioki,MACEUNE o P WATER(vi L

1 rRACT 5246244 WAT.VAUth C 617 14.06.1.114..INC 2141-3/11 1 1 IM werUlttlfilotthe r a .saas d wn


38/44

640

ffi

LINE LINE 'Err1 0 0 0

eliVeer

I WO IMO

$14220144 4.40.taef

1 1 4 ONE

FT 77

ME MeV gIT 341014/14.40i

YinirlimatootrittascoA ft 1.1Cirei vf

W A N 1 3 4 4ORTEZZA COURTLINE 'V rDIP WATER CUSINO COURTLIRE T r DIP WATER

TR A C T 3 2 0 2 - 3JJrNinarN P f a hela s e1 - L'I dzo War Aut.hortry3 ,1991.1 Li= OM4C10111Thrtl .1 1 1 . 1 4 1 1 9s nuCP-iU Pe= 4014341

r


39/44


40/44

UNirr E S T I M A T E DDUMMY n e e r C O S T A M O U N T

408 7.00, 0,952.0038.00

1,500.001,500.002,300.002,000.003,000.00

1 ,800.00

4,900.00

29 298.004,500.001.500.002,300.002.000.009.000.001,600.00

9,84)0.003,000.00 ,000.00

2

LF 71E A

1

3

E A ,000.00 ,400.00E A ,975.40 4,925.00E A 00.00 00.00EA ,500.00 500.00LF

E AE A

Sub Tot a l

LST O T A L

1,25453

2

5.00

1,503.00500.1X1

18,665.5028,295.25

6,270.0079,500.00

3,000.00leaszLaa.

18,555.5625,29525

mkAteni

Date:

12x8 Reducer12x12N1Y D.I. Tee18 D.I. Butterfly Valve

11 8 -AI .I. Tee

C O N T I N G E N C Y ( 1 0% )A D M I N I S T R A T I V E ( 1 5 %)

Bead Don a's, RCE 58828hecked y

Tract No. 32341-2 ngineer's EstimateProject Four Seasons, Indio

I T E M

Water Improvements8 D.I.P. Waterline)

2 LP. Waterl ine3 ' D.L Gate Vafve

xlir Reducer5 x 8 N 5 ' D . I . T e e8 xtriV D.I. Tee7 2 DJ. Butterfly Valve

12 tandard Fire Hydrant13 Misc. Bends and F in ings14 12'5:6 D.L Tee15 ervice Connections (63 lots a 32 average length)

3/4 Water Meter vii/ 1 Ser viceRemoval of Blow Off Ass'y

1617


41/44

Engineer s Estimateract No. 32341-3Project Four Seasons Indioniar I T E M A M O U N TN O . UNIT

S T I1M AT E D0 0 A N I TTY

UNIT C O S T

Water Improvements1 8 D.P. WatawlIna 1,792 27.00 48,384.00

92 r D.I. Gate Veto 1.500.00 13,500 00rrtirtita D.I. Tee 3 2,500.00 7,500.00

4 Standard fire Hydrant 6 ,975.00 29,850 005 ervice Cznnadacrts (38 lots @ 22' average length) 842 5.00 4,210.00

38/4 Water Meier wi 1' Service 1,500.00 57,000.00

7 * Blew Off Asey 2,500.00 5,000.00s p Tritor 186,444.00,

1 6 ,51 4A024,818.80

P35.60

18,544.4024,816.80

(DeDate:


42/44

U N I T E S T I M A T E DQ U AN T I T Y U N I T C O S T A M O U N TT E ME MN O ,

10,500.00,500.00I3,000.001 2,000.00

Water Improvements27.00' 8 1 3 1 .0 039.00 8,088.00

4 2" D 1 Butterfty Valve

LFLF

" D .I .P. Water line2 2' D.I .P. W ater line

I rA. Gate Valve

2.153476.

.302,192.50

8 V 3Brad Mavis, R C E 6 8 8 2Ch ecked h y :

Removal of Blow Off Ass'y12

2,200.009,000.00,000.00

2,200.00i

4,975.031 4,775.004,500.00

750.00 ,750.005.00i 1,810.00j

1,500.00 6,000.001,600.001 3,000 00

273,754.0027,375.40 27,375,4041,083.10 41,063.10

E AE

ISatTotal

10 ervice Connections (64 lots i 37' average length)11 /4" Water Meter w11" S ervice

T O T A L

DatiC

EA

C O N T I N G E N C Y ( 10 % )A D M I N I S T R A T I V E ( 1 5 % )

5 "x8"x8" D. I . Teet12'41 2'x12" D I . Tee

7 tandard Are Hydrant8 ' Misc. Bends and Fittings

12" Misc. Bends en Fittings500.00

Tract No. 32462-2 ngineer s EstimateProject Four Seasons, Indio


43/44


44/44

EXHIBIT CSCHEDULE OF PERFORMANCE

The estimated construction schedule for the Terra Lago East (aka K. Hovnanian s Four Seasonsat Terra Lago is below:Tract 32341-2

o Start Construction: January 8, 2014o End Construction: December 31, 2014

Tract 32341-3o Start Construction: January 8, 2014o End Construction: December 31, 2014

Tract 32462-2o Start Construction: January 8, 2014o End Construction: December 31, 2014

Tract 32462-3o Start Construction: January 8, 2014o End Con struction: December 31, 2014

The Development Impact Fees for these tracts have been paid. Supplemental Water Supply Feewill be paid in accordance with the 1WA Development Services Procedural Guidelines.

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