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HomeMy WebLinkAbout14-Development Services . . ORIGINAL CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION From: Valerie C. Ross, Director Subject: Resolution approving an Agreement with Pine Trails Partners, LLC, a California Limited Liability Company for Pine A venue Improvements. Dept: Development Services Date: September 5, 2006 MCC Date: September 18, 2006 Synopsis of Previous Council Action: 11/1012004 Mayor and Common Council adopted Resolution No. 2004-306 approving Final Map for Subdivision Tract No. 16509, Unit 1, located on the northwest side of Northpark Boulevard between University Parkway and Devil Creek Flood Control Channel. 03/07/2005 Mayor and Common Council adopted Resolution No. 2005-59 for formation of the Northpark Boulevard and Campus Parkway area Landscape Maintenance Assessment District No. 1036. 03/16/2005 Mayor and Common Council approved the Final Maps of Units 2 and 3 of Tract No. 16509 and approved Standard Form of Agreements for Subdivision Tract Nos. 16509-2 and 3 with University Park, LLC. 09/06/2005 Mayor and Common Council approved the Final Maps of Units 4 and 5 of Tract No. 16509 and approved Standard Form of Agreements for Subdivision Tract Nos. 16509-4 and 5 with University Park, LLC. 02121/06 Mayor and Common Council adopted Resolution No. 2006-59 approving a Parks Dedication and Improvements Agreement with J. R. Watson & Associates Development Co. for the dedication ofland for Chancellors Park, Westridge Park, Regency Park, and Improvements to Chancellors Park, Westridge Park, Regency Park, Art Colony Park, Collegian Park, and Pine A venue Greenbelt Park, 08/07/06 Mayor and Common Council adopted the 5-Year Capital Improvement Program (CIP) for 2006/07-2010/11. Recommended Motion: Adopt Resolution. Mike Grubbs, Engineering Manager Phone: Contact Person: 5179 Supporting data attached: Staff Report; Attachments; Reso & Agreement Ward: 5 FUNDING REQUIREMENTS: Amount: $ 140000 . Sonrce: M"'.'lT" T (1 /? ""nt .,1". t,y) [uncl (FY ?007/OR) Acct. Description: SS07-26 "Widen Pine Avenue from Belmont Ave to Ohio Ave (Reimbursement)" Finance: Conncil Notes: Rfso, J-Dr; h~ ~J~ Agenda Item NO.1!i..-- q/lt!Db " - , .. CITY OF SAN BERNARDINO REOUEST FOR COUNCIL ACTION STAFF REPORT Subject: Resolution approving an Agreement with Pine Trails Partners, LLC, a California Limited Liability Company for Pine Avenue Improvements. Background: J. R. Watson & Associates Development Co. has entered into a Parks Dedication and Improvements Agreement for development of six parks, including 2.2 acres known as Pine Greenbelt Park abutting the east side of Pine Avenue. Pine Trails Partners, LLC ("Developer") of which J. R. Watson is the managing partner, is developing the Greenbelt Park and adjacent Tract No 17716. In addition to the improvements to the park site, it would be desirable to have the street improvements to Pine Avenue installed prior to the improvements to the park site. Currently, there is no funding identified in the City's Capital Improvement Program for Pine Avenue improvements and the City has not established a schedule or identified a source of funds for making improvements to this segment of Pine Avenue. Engineering Manager/Field Engineer Michael Grubbs estimates the cost for the City to cause the necessary and proposed street improvements, including curbs, gutter, sidewalks, and street construction improvements, would exceed $220,000. The Developer is proposing street improvements to Pine A venue and portions of three streets intersecting Pine A venue that do not abut property owned by the Developer. The Developer desires to offer an incentive for the City to expedite the improvements that would enhance the Pine Greenbelt Park. The Developer is offering to construct the desired street improvements in exchange for reimbursement of $140,000 from the FY 2007/08 Capital Improvement Budget. Staff is proposing to use Measure I (I/2-cent sales tax) funds for the reimbursement because it will be a capacity enhancing improvement. Completion of street improvements for Pine Avenue and three streets abutting the proposed public greenbelt park would not only benefit the circulation system in the neighborhood but also improve the operations, maintenance, and usability of the future parks. Financial Impact: Design and construction of the project will be accomplished entirely by and at the expense of Pine Trails Partners. Staff anticipates that the Developer will complete the widening of Pine Avenue during FY 2006/07. However, reimbursement from the City in the fixed amount of $140,000 will not become due until approval of the FY 07/08 CIP budget and acceptance of the work. The City will add $140,000 in Measure I (1/2 cent sales tax) funds to the Capital Improvement Program in FY 2007/08 in Project No. SS07-26 "Widen Pine Avenue from Belmont Avenue to Ohio Avenue (Reimbursement)" to reimburse the developer for this work. A placeholder and detail page have been added to the 5- Y ear Capital Improvement Program for FY 2006/07 - 2010/11. All engineering design of the widening will be completed by and at the expense of the Developer and not reimbursed by the City. However, plan check and inspection fees will not be charged. tt QIJk'~~~1' ~ 2 ')1 ~o.1 9/,(16~ " . .. CITY OF SAN BERNARDINO REOUEST FOR COUNCIL ACTION STAFF REPORT (Continued) Recommendation: Adopt Resolution, Attachments: "1" - Tentative Tract Map No. 17716 "2" - Cost Estimate Spreadsheet "3" - Letter from Pine Avenue Partners, LLC (dated August 9, 2006) 3 " " " .. TENTATIVE TRACT MAP NO. 17716 \ j\ --1 -\' , ~ \ .\ \ , =iJ" .-- . ",. .- -- . \i1~ Ii-a, \ \ - - - -.-- -.-- :--,:-..... ~~..- ==-.- ~Ql- - - 51.:..._ ~f:-- - - - -- ==-=-=- :.....- =at.:- - ii'''F'a.:=::.~.~...r. --... . . OHIO AVENUE ., - -,..------- - ---------...--- --- -- .- ............ . ...,JII;= --- -. Ih_ ..__ !I I~ - - -.-- t.'!!E'ol. i~AF~ , IN. 7 - ......- r.....- --~ - !!II.:' '.laC ur ~_'... 17 -. . -. .. -. --- --... ---.. ......oJ REDWOOD STREET -. -. li; -. -~ -- Ii ::: .- Ii -. iii iii -- ~:: ;;! 9;:; ili -! -. I;:; ..f ... II !I. aJ -. II . ... ... .. ... su.r.f' t._,~ \ \ II i ., ~ . ... . SI ... ... I \ \ " - . . BELMONT A VENUE ~----_..- -- -- _"'all' -.... 1'ftl! ~ -..... CITY cFSAN'BERN.\IIllNO It/llls',cn "'-'"!.-."",,, ~~"~::'~U.~.:.".ol. TENTAnVET",CT ~p NO 11711 .......... ~r....~ ......~ _u___, Attachment "2" Cost Estimate for Pine Avenue widening from Belmont Avenue to Ohio Avenue Cost Comparison Pine Avenue Wldenlna Citv Estimate vs. Developer Estimate 27.Jul-06 Cltv Cltv Developer Developer Item Quantitv Unit Item Description Cost/Unit Amount Cost/Unit Amount 1 1 LS Clearing& Grubbing 18,000.00 $ 18,000 5,000.00 $ 5,000 2 1 LS Mobilization 18,000.00 $ 18,000 5,000.00 $ 5,000 3 1 LS Traffic Control 9,000.00 $ 9,000 9,000.00 $ 6,000 4 1 LS Stripping 2,500.00 $ 2,500 2,500.00 $ 2,500 5 132 TN AC Pavement 2.5 in 84.00 $ 11,103 48.00 $ 6,345 6 207 TN Aggregate Base 4 in 32.53 $ 6,734 18.45 $ 3,819 7 1,270 LF Curb & Gutter 8 in 15.00 $ 19,050 15.00 $ 19,050 8 7,620 SF Sidewalk 4.00 $ 30,480 4.00 $ 30,480 9 1 EA Handicap Ramp 1,325.00 $ 1,325 1,325.00 $ 1,325 10 2 EA Street Light 4,300.00 $ 8,600 4,300.00 $ 8,600 11 847 SY Cold Mill ex ac 1.5 IN 30.00 $ 25,410 20.00 $ 16,940 12 68 TN Overlay Pavement 1.5 In 84.00 $ 5,712 48.00 $ 3,264 13 1 EA Lower manhole to Grade 10,000.00 $ 10,000 10,000.00 $ 10,000 14 1 EA Verizon Vault 5,000.00 $ 5,000 5,000.00 $ 5,000 15 1 EA Cable Vault 5,000.00 $ 5,000 5,000.00 $ 5,000 Subtotal $ 175,914 $ 128,323 Contigencies $ 20,000 $ 12,000 Engineering $ 10,000 Construction Inspection and Administration $ 20,000 GRAND TOTAL $ 226,000 $ 140,000 Attachment "3" Pine Trails Partners, LLC 333 S. Hope Street, Suite 3600 Los Angeles, CA 90071 tel: (213) 229-2868; fax: (213) 229-2870 August 9,2006 Via Facsimile Michael Grubbs Acting Chief Engineer City of San Bernardino 300 N. "0" Street, 3rd Floor San Bernardino, CA 92418 Re: Tract Number 17716 Dear Mr. Grubbs: In connection with the referenced Tract we are pleased to be able to agree to complete the widening of the east side of Pine Street from Ohio south to Be]mont on the tenus indicated in that certain proposed agreement entitled Pine Improvement Agreement. We appreciate the willinguess of the City of San Bernardino, subject to the approval of the City Engineer and other terms and conditions of approval, to reimburse the developer for $ ]40,000 representing a portion of the costs required to perfonu this work. Watson & Associates will spend at least $140,000 on the street improvements. The City's estimate for the work was $220,000. Very truly yours, ~ ] rIes M. Shumaker Pine Trails Partners, LLC cc: James R. Watson Chuck J. Diamond Ben Steckler 00628.001117889.1 ! "." . . . 1 2 (Co~y RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT 4 WITH PINE TRAILS PARTNERS, LLC, A CALIFORNIA LIMITED LIABILITY 5 COMPANY, FOR PINE AVENUE IMPROVEMENTS. 6 7 3 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS; SECTION 1. THAT THE MAYOR is hereby authorized to execute the Agreement (see 8 9 Exhibit "A" and incorporated herein) with Pine Trails Partners, LLC, A California Limited 10 11 12 13 Liability Company, for street improvements to Pine Avenue. Such Agreement shall be effective only upon being fully executed by all parties. SECTION 2. This Agreement shall not take effect or become operative until fully signed and executed by the parties and no party shall be obligated hereunder until the time of 14 such full execution. No oral agreement, amendments, modifications or waivers are intended or 15 16 17 18 19 III 20 III 21 22 23 24 authorized and shall not be implied from any act or course of conduct of any party. SECTION 3. This resolution is rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage of the resolution. 25 26 27 28 ND. F-I q II :? I [JG 1 . 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT 3 WITH PINE TRAILS PARTNERS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, FOR PINE AVENUE IMPROVEMENTS. 4 5 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and 6 7 Common Council of the City of San Bernardino at a meeting thereof, held on the day of 8 9 Council Members: 10 ESTRADA 11 BAXTER , 2006, by the following vote, to wit: AYES NAYS ABSTAIN ABSENT 22 23 24 Approved as to Form: Patrick J. Morris, Mayor City of San Bernardino . 25 JAMES F. PENMAN, City Attorney 26 27 28 1 . 11c~~ . . . EXHIDIT "A" PINE AVENUE IMPROVEMENTS AGREEMENT This Pine Avenue Street Improvements Agreement ("Agreement") is entered into effective ,2006 ("Effective Date") between the City of San Bernardino, a Municipal Corporation and Charter City ("City") and Pine Trails Partners, LLC, a California Limited Liability Company, together with certain assignees and/or affiliated entities established for the express purpose of creating the developments described below, or any of them (collectively and individually, "Developer"). RECITALS I. On September 3, 2005, the Common Council of the City of San Bernardino ("City") approved the sale of certain property currently referred to as Tentative Tract No. 17716 ("Property") to J. R. Watson Development Co., Inc and the assignment of rights to Pine Trails Partners, LLC pursuant to an approved form of purchase agreement ("Purchase Agreement"); and 2. On December 20, 2005, Pine Trails Partners, LLC acquired the Property in accordance with the terms of the Purchase Agreement and intends to develop 39 single family detached homes on the Property in accordance with Tentative Tract Map No. 17716; and 3. The Developer is proposing street improvements to Pine Avenue and portions of three streets intersecting Pine Avenue that do not abut property owned by the Developer; and 4. Completion of street improvements for Pine Avenue and portions of the three streets abutting the proposed public greenbelt would benefit the circulation system in the neighborhood and also improve the operations, maintenance, and usability of a future greenbelt or park; and 5. The cost of the proposed street improvements are proposed to be reimbursed to Developer out of the City's Measure I Funds from the 2007-2008 Capital Improvement Program; and 6. The City would benefit in the event the Developer installed the improvements to the streets now rather than delay the completion of the street improvements at a future, yet to be determined, date. In the event that the City approves this Agreement, the City would reimburse Developer $ I 40,000 in return for the completion of necessary public improvements estimated to exceed $220,000 in value. OPERATIVE PROVISIONS 1. Time for Commencement and Performance. The City hereby fixes the time for the completion of said work to be within 24 months from the effective date of this Agreement. 00628.006/172121 1 EXHIBIT "A" . 2. Time Extension. In the event good cause is shown therefor, the City Engineer of City may extend the time for completion of the improvements hereunder up to a maximum of24 additional months. The City Engineer of City shall be the sole and final judge as to whether or not good cause has been shown to entitle Developer to an extension of time. 3. Improvements: The proposed improvements include design and construction of curb, gutter, and sidewalk on the east side of Pine Avenue extending from Belmont Avenue to Ohio A venue; construction of curb, gutter, sidewalk, and associated street construction and paving extending for 100 feet along the north side of Belmont A venue and extending for 100 feet along the south side of Ohio Avenue, and extending for 100 feet along both the north and south sides of Redwood Street from Pine Avenue (collectively known as "Improvements"). 4. Design and Construction ofImprovements: Developer shall use its best reasonable efforts to complete the Improvements in accordance with the plans and specifications as approved by the City Engineer. The plans and specifications for the Improvements shall be drafted by the Developer and shall be subject to the review and approval of the City Engineer in his/her sole discretion. 5. Coordination and Completion of Improvements: The Improvements shall be constructed and completed by the Developer and approved and accepted by the City Engineer prior to the final inspection and release of utilities by the Building Inspection Division for the last 8 houses in Tentative Tract No. 17716. Approval and acceptance of the improvement is subject to the City Engineer's sole discretion. . 6. Permits: The Developer shall secure the required permits for Improvements. The City shall not charge the Developer fees for plan check, inspection and grading permits for Improvements. 7. Site Dedication: Improvements identified in this Agreement shall be dedicated to the City free and clear of liens prior to City's acceptance ofImprovements. 8. Reimbursements: In exchange for the design, installation, construction, and completion of the Improvements, the Developer shall be reimbursed $140,000 from Half(l/2) Cent Sales Tax (i.e. Measure I ) Funds which will be allocated in the City's 2007-2008 Capital Improvement Program, provided the Developer has completed the Improvements to the satisfaction of the City Engineer and in compliance with the terms of this Agreement. In the event that Developer does not comply with the terms of this Agreement then the City shall not have the obligation to reimburse Developer. The City shall make payment ofreimbursements to the Developer within Sixty (60) days after City acceptance of the Improvements. 9. Term of Reimbursement Obligation: The City's obligation, under this Agreement, to reimburse Developer for the completion of the Improvements shall continue for a period of five (5) years from the Effective Date of this Agreement After such five-year period or reimbursement in full, whichever occurs first, the City's obligation to reimburse the Developer shall terminate. In the event that Developer elects not to proceed with the Improvements, then it shall not be entitled to the reimbursement described in this Agreement. . 00628.006117212.1 2 EXHIBIT "An . 10. Bids and Contracts: Developer shall be solely responsible for securing appropriate bids and awarding the contract(s) for construction and installation of Improvements in compliance with all applicable federal, state and local laws. 11. Inspection: The City shall have the right at all times to inspect the construction of the Improvements to the street right-of-way and abutting Park to measure compliance with approved City plans and specifications, and standards of the City Engineer. 12. Indemnification: a. With respect to the Developer's performance as provided in this Agreement, the Developer shall defend, indemnify and hold the City and its elected officials, officers and employees free and harmless from any loss, cost or liability (including, without limitation, liability arising from injury to persons, including death and worker's compensation claims or damage to property) arising from or related to (i) the design or construction of the Improvements including, without limitation, obligations for the payment of money for material or labor, (ii) any failure on the part of the Developer to take any action which it is required to take as provided in the Agreement, (iii) any action taken by the Developer which it is prohibited from taking as provided in the Agreement, (iv) any act or omission of the Developer in performing its obligations under the Agreement, or (v) any legal challenge to the City's actions in approving or implementing this Agreement. . b. Included in the scope of the foregoing indemnification will be all damages and claims for damages which are suffered or alleged to have been suffered by reason of the matters which are the subject of the applicable indemnification and all of the associated legal fees and court costs (but not internal costs). Without limiting the effect of the foregoing, the Developer shall have the right to defend against any claim with respect to which it is indemnifying the City, using legal counsel of its choice. The City shall cooperate with the Developer and shall give the Developer its full support in connection with any claim which the Developer is indemnifying the City. c. Developer shall require all persons doing work on Improvements, including their contractors and subcontractors, to obtain and maintain insurance of the types and in the amounts described below in a form and with carriers satisfactory to City. (i) Commercial General Liability Insurance: Occurrence version commercial general liability insurance or equivalent form with a limit of not less than $1,000,000 each occurrence shall be maintained during the term of this Agreement. Ifsuch insurance contains a general aggregate limit, it shall apply separately to this Agreement or be no less than two times the occurrence limit. Such insurance shall: (I) Name City, its elected officials, officers, employees and agents as additional insureds with respect to performance ofthis Agreement. The coverage shall contain no special limitations on the scope of its protection afforded to the above-listed insureds. . 00628.006117212.1 3 EXHIBIT "An (2) Be primary with respect to any insurance or self- . insurance programs covering City, its elected officials, officers, employees and agents. (3) Contain standard separation of insureds provisions. (ii) Business Automobile Liability Insurance: Business automobile liability insurance or equivalent fonn with a limit of not less than $500,000 each accident shal1 be maintained. Such insurance shal1 include coverage for owned, hired, and non- owned automobiles. (iii) Workers' Compensation Insurance: Workers' compensation insurance with statutory limits and employer's liability insurance with limits of not less than $1,000,000 each accident shall be maintained. (iv) Other Insurance Requirements: (l) Developer shal1, prior to taking any actions under this Agreement, furnish City with properly executed certificates of insurance which shall clearly evidence all insurance required in this Section and provide that such insurance shal1 not be canceled, or material1y altered without the prior written consent of the City. . 13. Prevailing Wages: Developer is aware of the requirements of California Labor Code Sections 1770 et. seq., which require the payment of prevailing wage rates for Developer's contracts with its contractor(s) to construct the Improvements in accordance with a public works contract as defined in Sections 1720 and 1720.2 of the California Labor Code. The Developer shal1 pay and cause its subcontractors to pay prevailing wage for the construction of the Improvements. Developer agrees to defend, indemnify, and hold City, its elected officials, officers, and agents hannless from any claim or liability including, without limitation, attorney's fees and court costs, arising from any failure or alleged failure to comply with these provisions of the California Labor Code. 14. Contractor Licenses: All work perfonned on the Improvements shall be done only by contractors licensed in the State of California and holding business licensees in the City of San Bernardino, and qualified to perfonn the type of work required. 15. Acceptance of Work: Upon completion of the Improvements to the satisfaction of City, the Improvements shall be presented to the City Engineer for acceptance, and for authorization to file a Notice of Completion. The City Engineer shal1 accept the Improvements if he/she detennines that the Improvements were constructed in accordance with the approved plans, specifications and contract documents, and that all other requirements of the Agreement have been satisfied. Upon acceptance of the Improvements, Developer shall assign to City all of Developer's rights and remedies, including warranties, as set forth in the approved contract documents that City would have, had City itself engaged Developer's contractor to construct the Improvements. . 16. Guarantee: Developer shall post a warranty bond for the entire site in fonn and content acceptable to the City, which will guarantee al1 work and materials for the Improvements 00628006/17212.1 4 .' EXHIBIT "A" . to be free from all defects due to faulty materials or workmanship for a period of one (1) year after the date of formal acceptance of the work by City. 17. Record Drawings: Prior to acceptance of the Improvements by the City Engineer, Developer shall provide City with three (3) copies ofrecord drawings with certification as to accuracy and completeness by an engineer and/or landscape architect licensed in the State of California. The City shall not be responsible for insuring the completeness and accuracy of the record drawings. 18. Ownership of the Improvements: From and after acceptance of the Improvements by formal action of the City Engineer, ownership of the Improvements shan be vested exclusively in City. 19. Default bv Developer: If the Developer fails to perform any of its obligations as provided in the Agreement and fails to cure its nonperformance within 30 days after written notice of nonperformance is given by the City, then the Developer shall be in default and the City shall have all remedies which are available to it at law or in equity; provided, however that if the nature of Developer's failure to comply or perform is such that it cannot reasonably be cured within 30 days, then the Developer will not be in default if it immediately commences and thereafter diligently continues to cure its failure. . 20. Default bv City: If the City fails to perform any of its obligations as provided in the Agreement and fails to cure its nonperformance within 30 days after written notice of nonperformance is given by the Developer, then the City shall be in default and the Developer shall have all remedies which are available to it at law or in equity; provided, however that if the nature of City's failure to perform is such that it cannot reasonably be cured within 30 days, then the City shall not be in default if it immediately commences and thereafter diligently continues to cure its failure. 21. Negation of Agency. Joint Venture or Partnership: The parties acknowledge that in entering into this Agreement, they are acting as independent entities and not as agents of the other in any respect. The parties hereby renounce the existence of any form of joint venture or partnership among or between them and agree that nothing in this Agreement win be construed as making them joint ventures or partners. 22. Notices and Other Communications: All notices or other communications which are required or permitted to be given to the parties shall be in writing and shall be given either by personal service or by mailing the same certified or registered mail, postage prepaid, return receipt requested, or overnight mail delivery service, addressed as follows: CITY City of San Bernardino 300 North D Street San Bernardino, CA 92418 Attn: Director of Development Services . 00628.U06l17212.1 5 ,------- .' . . EXHIBIT "An DEVELOPER Pine Trails Partners, LLC c/o J. R. Watson & Associates Development Co. 101 North Main Street, Suite A Seal Beach, CA 90740 Addresses, to which notices or other communications may be delivered, may be changed from time to time by written notice, which is given as provided in this paragraph 23. 23. Estoppel Certificates: At the request of either party, the other party will, within 10 days, certify in writing that, to the best of its knowledge, (a) this Agreement has not been amended or modified, except as expressly provided in that estoppel certificate and (b) no default in the performance of the requesting party's obligations as provided in this Agreement exists, except as is expressly provided in that estoppel certificate. 24. Applicable Law: This Agreement will be construed and enforced as provided under California law. 25. Superseding State or Federal Law: If any state or federal law or regulation which is enacted or adopted after the Effective Date or any other action of any governmental entity which is not under the City's control, prevents or precludes compliance with any provision of this Agreement, then that provision of this Agreement shall be modified or suspended only to the extent and for the time necessary to achieve compliance with that law, regulation or other governmental action and the remaining provisions of this Agreement shall continue in full force and effect and the parties shall negotiate in good faith for such amendments to this Agreement as may be necessary to achieve its intent, notwithstanding the existence of such state or federal law or regulation or other governmental action. On the repeal of any such law, regulation or other governmental action or on the occurrence of any other circumstance which removes the effect of the same on this Agreement, the provisions of the Agreement shall be automatically restored to their full original effect and any amendment to this Agreement which the parties have entered into as a result of any such law, regulation or other governmental action, shall terminate. 26. Venue: Any legal action with respect to this Agreement shall be brought in San Bernardino County Superior Court or in the United States District Court for the Central District of California. 27. Attornevs' Fees: If legal action is taken to enforce or interpret any provision of this Agreement, then the prevailing party in that action shall be entitled to recover from the losing party all attorneys' fees, court costs and necessary disbursements in connection with that action. The costs, salaries and expenses of the City Attorney, and members of his office, in connection with that action shall be considered as attorney's fees for the purpose of this Agreement. 28. Paragraph Headings: The paragraph headings of this Agreement are for convenience only and are not a part of and are not intended to govern, limit or aid in the . interpretation of any provision of this Agreement. 00628.006117212.1 6 . . . EXHIBIT "An 29. Construction: In all cases, the language in this Agreement will be construed simply, according to its fair meaning and not strictly for or against either party, it being agreed that the parties or their agents have participated in the preparation of this Agreement. 30. Survival: Each and ever covenant in this Agreement shall survive the execution and delivery of this Agreement for the benefit of the parties. 31. Calendar Periods: All references in this Agreement to "years", "quarters", "months" and "days" will be deemed to be references to calendar years, quarters, months, and days. 32. Severability: Every provision of this Agreement is and shall be construed to be a separate and independent covenant. Without limiting the effect of paragraph 25, ifany provision of this Agreement or the application of the same is, to any extent, found to be invalid or unenforceable, then the remainder of this Agreement or the application of that provision to circumstances other than those to which it is invalid or unenforceable, will not be affected by the same and that provision of this Agreement shall be valid and shall be enforced to the extent permitted by the law and the parties will negotiate in good faith for such amendments to this Agreement as may be necessary to achieve its intent, notwithstanding such invalidity or unenforceability. 33. Covenant of Good Faith: In exercising their rights and in performing their obligations as provided in this Agreement, the parties shall cooperate with one another in good faith, so the intent of this Agreement can be attained. 34. Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed to be an original for all purposes and all such counterparts will constitute one and the same agreement. 35. Incorporation of Recitals: The "Recitals" in this Agreement are material and are incorporated by reference as though fully set forth herein. 36. Amendment: No amendment or waiver of any term of the Agreement shall be binding unless in writing and until it has been approved and executed by the City and Developer. 37. Assignment: This Agreement shall not be assigned without the written consent of the parties hereto, and any assignment without such written consent shall be void and ineffective. 38. Time of Essence: Time is of the essence of this Agreement. SIGNATURES FOLLOW 00628.00';;11212.1 7 . . . EXHIBIT "A" PINE A VENUE IMPROVEMENTS AGREEMENT CITY OF SAN BERNARDINO By: Patrick J. Morris, Mayor A TrEST: By: Rachel Clark, City Clerk APPROVED AS TO FORM: James F. Penman, City Attorney 00628.0061172\2.\ ./~ DEVELOPER Pine Trails Partners, LLC A California limited liability company By: J&J Pine Trails, LLC A California limited liability company Manager and Member By: James R. Watson, Manager 8