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HomeMy WebLinkAbout24604RESOLUTION NO. 24604 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING A REDUCTION OF SECURITIES ASSOCIATED WITH TRACT MAP NO. 36725 AND AUTHORIZING REDUCTION OF SECURITIES REOIRED BY THE SUBDIVISION IMPROVEMENT AGREEMENT WITH FAR WEST INDUSTRIES, A CALIFORIA CORPORATION, FOR PROPERTY LOCATED AT THE SOUTHEAST CORNER OF NORTH PALM CANYON AND ALVARADO ROAD, IN SECTION 3, TOWNSHIP 4 SOUTH, RANGE 4 EAST. A7028. WHEREAS, the City Council of the City of Palm Springs, (hereinafter the "City"), at its meeting of July 19, 2017, adopted Resolution No. 24278, approving Tract Map 36725 and a related Subdivision Improvement Agreement, (Agreement No. 7028), with Far West Industries, a California corporation, (hereinafter the "Developer"), in accordance with Section 66462 of the California Government Code; and WHEREAS, in accordance with Section 4.1 of the Subdivision Improvement Agreement, the Developer was required to submit subdivision improvement securities in the amount of $3,100,00 to guarantee construction of certain public improvements required for and associated with Tract Map 36725, (the "Works of Improvement"); and WHEREAS, the Developer has filed with the City Clerk a performance bond in the amount of $3,100,000, labor and materials (payment) bond in the amount totaling $1,550,000, maintenance and warranty bond in the amount of $465,000, and a monumentation bond in the amount of $3000 in accordance with the Subdivision Improvement Agreement; and WHEREAS, the Developer has completed portions of the Works of Improvement, and has requested that the City Council authorize a reduction in the subdivision improvement securities to reflect its progress with completing a portion of the Works of Improvement; and WHEREAS, the City Engineer has examined the Works of Improvement, and recommends that the performance bond in the amount of $3,100,000 be reduced by 50% to $1,550,000, and that the labor and materials (payment) bond be reduced by 50% to $775,000, to reflect completion of portions of the Works of Improvements. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The recitals above are found to be true and correct and constitute the findings of the City Council made in support of this resolution. Resolution No. 24604 Page 2 SECTION 2. The City Council hereby authorizes a reduction in the Security Instruments previously filed with the City Clerk to guarantee construction of the Works of Improvement associated with Tract Map No. 36725, as required by that certain Subdivision Improvement Agreement, (Agreement No. 7028), as follows: Faithful Performance Bond No. 391100P to be reduced 50% to $1,550,000 Labor and Material Bond No. 391100P to be reduced 50% to $775,000 SECTION 3. The City Clerk is hereby authorized to submit a letter to the Surety documenting the City's approval to reduce the face amount of the Security Instruments as noted in Section 2 of this Resolution. ADOPTED THIS 22ND DAY OF MAY, 2019. David H. Ready, Esq., Ph. City Manager ST: Ardhony J. jejia, City Clerk Resolution No. 24604 Page 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) CITY OF PALM SPRINGS) CERTIFICATION SS. I, Anthony J. Mejia, MMC, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 24604 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the 22nd day of May, 2019, by the following vote: AYES: Councilmembers Holstege, Middleton, Roberts, Mayor Pro Tem Kors, and Mayor Moon NOES: None ABSENT: None ABSTAIN: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this �cj+— day of 'fig —g- , _ ze ► y thonyJ P ejia, City Clerk