HomeMy WebLinkAbout24628RESOLUTION NO. 24628
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AUTHORIZING A REDUCTION OF
SECURITIES REQUIRED BY THE SUBDIVISION IMPROVEMENT
AGREEMENT (A6730) FOR TRACT MAP NO. 33575, FOR
PROPERTY LOCATED AT THE NORTHEAST CORNER OF
SOUTH PALM CANYON DRIVE AND MESQUITE AVENUE, IN
SECTION 23, TOWNSHIP 4 SOUTH, RANGE 4 EAST.
WHEREAS, the City Council of the City of Palm Springs, (hereinafter the "City"),
at its meeting of July 12, 2006, adopted Resolution No. 21634, approving Tract Map
33575 and entered into a related Subdivision Improvement Agreement, (Agreement No.
A6730), on April 19, 2016 with RREF II -DC Cameron, LLC a California limited liability
company (former Developer), in accordance with Section 66462 of the California
Government Code; and
WHEREAS, the City, at its meeting of April 4, 2018, approved the first amendment
to the Subdivision Improvement Agreement, extending the term of completion by one year
to April 19, 2019 with the condition of certain improvements ("Works of Improvement") to
be completed by September 1, 2018; and
WHEREAS, the City, at its meeting of March 20, 2019, approved the second
amendment to the Subdivision Improvement Agreement, extending the term of
completion by one year to April 19, 2020 with the condition that RREF II -DC Cameron,
LLC, a California limited liability company close escrow and convey Tract Map 33575 to
Toll Brothers West, Inc., a Delaware corporation (Developer), on or before April 5, 2019;
and
WHEREAS, in accordance with Section 4.1 of the Subdivision Improvement
Agreement, the former Developer was required to submit subdivision improvement
securities in the amount of $9,009,500 to guarantee construction of certain public
improvements required for and associated with Tract Map 36725, (the "Works of
Improvement"); and
WHEREAS, the former Developer filed with the City Clerk a performance bond in
the amount of $6,000,000, labor and materials (payment) bond in the amount totaling
$3,000,000, and a monumentation bond in the amount of $9,500 in accordance with the
Subdivision Improvement Agreement; and
WHEREAS, the former Developer has completed portions of the Works of
Improvement, and the Developer has requested that the City Council authorize a
reduction in the subdivision improvement securities and to allow the Developer to post
new subdivision improvement securities to reflect its progress with completing a portion
of the Works of Improvement; and
Resolution No. 24628
Page 2
WHEREAS, the City Engineer has examined the Works of Improvement, and
recommends that the performance bond in the amount of $6,000,000 be reduced by to
$3,500,000, and that the labor and materials (payment) bond be reduced to $1,750,000,
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.
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. 33575, as required by that certain
Subdivision Improvement Agreement, (Agreement No. 6730), as follows:
Faithful Performance Bond No. SUR23100020 to be reduced to $3,500,000
Labor and Material Bond No. SUR23100020 to be reduced to $1,750,000
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 19T" DAY OF JUNE, 2019.
David H. Ready, E
City Manager
ATTEST:
ony J. M "a, M C
City Clerk
Resolution No. 24628
Page 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE) ss.
CITY OF PALM SPRINGS)
I, Anthony J. Mejia, MMC, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 24628 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 June 19, 2019, by the following
vote:
AYES: Councilmembers Holstege, Middleton, Roberts, Mayor Pro Tern 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 fy� { _ day of i �zz