HomeMy WebLinkAbout1R OCRCITY COUNCIL STAFF REPORT
DATE: January 27, 2022 CONSENT CALENDAR
SUBJECT: ACCEPTANCE OF PUBLIC IMPROVEMENTS AND AUTHORIZATION TO
RELEASE SUBDIVISION IMPROVEMENT SECURITIES FOR THE “VIBE
DEVELOPMENT – JEN CALIFORNIA 3, LLC, A CALIFORNIA LIMITED
LIABILITY COMPANY”, TRACT MAP 36689
FROM: Justin Clifton, City Manager
BY: Development Services Department
SUMMARY:
On June 20, 2018, the City Council approved Tract Map 36689 and a subdivision
improvement agreement with Jen California 3, LLC, a California Limited Liability
Company (“Developer”), securing the Developer’s completion of certain required public
and private improvements associated with Tract Map 36689. The Developer has
completed the required public improvements, and the City Council may accept these
improvements as completed and complying with the City’s approved plans and authorize
release of subdivision improvement securities.
RECOMMENDATION:
Adopt Resolution No. _________,“A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING ACCEPTANCE OF THE
SUBDIVISION IMPROVEMENTS ASSOCIATED WITH TRACT MAP 36689 AND
AUTHORIZING RELEASE OF SECURITIES REQUIRED BY THE SUBDIVISION
IMPROVEMENT AGREEMENT WITH JEN CALIFORNIA 3, LLC, A CALIFORNIA
LIMITED LIABILITY COMPANY, (A7158), FOR PROPERTY LOCATED AT THE
NORTHEAST CORNER OF FARRELL DRIVE AND BARISTO ROAD, IN SECTION 13,
TOWNSHIP 4 SOUTH, RANGE 4 EAST”.
BUSINESS PRINCIPAL DISCLOSURE:
The Public Integrity Disclosure Form from Jen California 3, LLC, a California Limited
Liability Company, is included as Attachment A.
BACKGROUND:
At its meeting of July 23, 2014, the Planning Commission recommended approval of
Tentative Tract Map 36689, which was subsequently approved by the City Council,
subject to conditions, on September 17, 2014. Tentative Tract Map 36689 is located at
Item 1R - 1
the Northeast corner of Farrell Drive and Baristo Road, In Section 13, Township 4 South,
Range 4 East, as shown in the following vicinity map.
Site Map – TM 36689
On June 20, 2018, the City Council adopted Resolution No. 24448, approving Tract Map
36689 and an associated Subdivision Improvement Agreement, (the “SIA”), with the
Developer. Tract Map 36689 involved a subdivision of 72 single-family homes and 93
condominium units included. The SIA and Tract Map 36689 are on file with the City Clerk.
Associated with Tract Map 36689 was a requirement to construct certain public and
private improvements, including:
• On-site private street and storm drainage improvements;
• On-site private sewer and domestic water system improvements; and
• Off-site public street improvements.
At the time Tract Map 36689 was approved by the City Council, construction of required
public and private improvements associated with Tract Map 36689 had not been
completed; an engineer’s estimate of the cost of the improvements to be completed was
$5,684,000.
Item 1R - 2
In accordance with Section 66462 of the California Government Code, the Developer
requested that the City enter into the SIA securing the cost of these improvements not
yet completed to the City’s satisfaction, (defined by the SIA as the “Works of
Improvement”). Accordingly, pursuant to the terms of the SIA, the Developer filed the
following Security Instruments with the City Clerk to guarantee construction of the Works
of Improvement.
In 2019 the Developer had partially completed the required public improvements, and at
its regular meeting of July 17, 2019, the City Council authorized reductions of subdivision
improvement securities:
• Faithful Performance Bond; $5,684,000 (93% reduction = $400,000)
• Labor and Material Bond; $2,842,000 (93% reduction = $200,000)
• Monumentation Bond; $30,000 (0% reduction)
• Maintenance and Warranty Bond; $852,600 (0% reduction)
STAFF ANALYSIS:
The Developer has satisfactorily completed construction of the Works of Improvement
and has requested that the City Council accept the improvements and release the
Security Instruments in accordance with the terms of the SIA. On behalf of the City
Engineer, the City’s Public Works Inspectors have inspected the Works of Improvement
and found them to be in accordance with the City’s approved plans and specifications
and recommends the City Council accept the improvements and release the Security
Instruments in accordance with the SIA.
ENVIRONMENTAL ASSESSMENT:
Pursuant to the California Environmental Quality Act (CEQA) Guidelines, the requested
time extension for TPM 36767 and TTM 36689 is considered a project under the California
Environmental Quality Act (CEQA). In connection with the 2014 project approvals, an
initial study was conducted on the site analyzing the project which concluded that there
were aspects of the project that may cause a significant impact on the environment. A
draft mitigated negative declaration (DMND) was proposed and a 20-day public review
period for the Draft Mitigated Negative Declaration (DMND) was held beginning on April
17, 2014 and ending on May 6, 2014. No comments were received that would require
modification or recirculation of the DMND. Mitigation measures that would reduce the
significant impacts to a less than significant level are imposed as part of project approval.
On September 17, 2014, the City Council adopted a mitigated negative declaration as an
adequate analysis of the environmental impacts of the proposed project.
FISCAL IMPACT:
The Works of Improvement include both publicly maintained and privately maintained
improvements; the public improvements are to be accepted and subsequently maintained
by the City. Private improvements will be maintained by the Homeowners Association
Item 1R - 3
pursuant to the Covenants, Conditions and Restrictions (CC&Rs) recorded against the
properties within Tract Map 36689.
REVIEWED BY:
Department Director: Flinn Fagg
City Manager: Justin Clifton
ATTACHMENTS:
A. Public Integrity Disclosure
B. Resolution
Item 1R - 4
Item 1R - 5
Who Must File?
CITY OF PALM SPRINGS
PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTIONS FOR APPLICANTS)
Applicants that are NOT a natural person or group of natural people that will be identified on
the application, and seek a City approval determined by a vote of City officials. Examr:;les
include corporations, limited liability companies, trusts, etc. that seek a City Council appro·1al,
or an approval by one of. the City's board or commissions.
Why Must I File?
The City of Palm Springs Public Integrity Ordinance advances transparency in
municipal government and assists public officials in avoiding conflicts of interest. The
City's Public Integrity Ordinance, codified in Chapter 2.60 of the municipal code, reflects the
City's interest in ensuring that companies (and other legal entities that are not natural
people) doing business in the community are transparent and make disclosure as to their
ownership and management, and further tl1at those companies disclose the identity of any
person, with an beneficial ownership interest of five percent (5%) or more.
When Must I File?
You must file this form with the Office of the City Clerk at the same time when you file y:)Ur
application for a City approval determined by a vote of City officials, whether elected or
appointed.
(Revised 09 13 18)
CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTION FOR APPLICANTS)
Page 1 of 2
Item 1R - 6
What Must I Disclose?
A. The names of all natural persons who are officers, directors, members, managers,
trustees, and other fiduciaries serving trusts or other types of organizations (attorneys,
accountants, etc.).
Note: (1) you must make these disclosures in relation to the applicant entity, and also in relation to any related
entity that owns a part of, or makes a profit based upon the business of the applicant entity. Disclosures may
include parent, subsidiary or affiliated entities of the applicant entity; (2) if any entity that is not a nat'ilral
person serves the applicant entity (e.g., as a member of an applicant LLC), then all officers, direcfrJrs,
members, managers, trustees, etc., of the second entity must be disclosed).
8. The names of persons owning a beneficial interest of five percent (5%) or more in your
entity, Owners/investors who have such an interest hold either investment power or
voting power, i.e., they can (i) sell or transfer their interest, or (i) vote their interest in
management decisions.
NOTE: USE ADDITIONAL PAGES AS NECESSARY
What if I Have Questions?
If you have any questions about how to complete this form, please contact
City Attorney, Edward Z. Kotkin (email: Edward.Kotkln@pa l111spr i nc1sca.gov )
PENALTIES
Falsification of information or failure to report information required to be reported
may subject you to administrative action by the City.
(Revised 09 13 18)
CITY OF PALM SPRINGS-PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTION FOR APPLICANTS)
Page 2 of 2
Item 1R - 7
City of Palm Springs
Public Integrity Disclosure
Supplementary Instructions
In an effort to ensure we capture the required business entity information in accordance w;th the
attached instructions, we provide you these supplementary instructions to clearly identify the
required information, and the format the information should be provided.
If you, as the applicant, are a business entity (i.e. a corporation or limited liability company), and it is
also comprised of other business entities as its members or having a financial interest, all other such
business entities must also be disclosed, including those entities other business entities, if any.
Ultimately, the City's disclosure document (attached) requires a listing identifying all natural persons
having any financial interest over 5% of the business entities (and any other business entities
comprising your business entity)
As an example, Applicant is: Acme Brothers, Inc., a California corporation, whose officers are: John
Doe, Jill Doe, and Jay Doe, which is owned 50% by Acme Brothers, LLC, a California limited iability
company, and John Doe (25% interest) and Jill Doe (25% interest). Acme Brothers, LLC, is mam;ged by
Acme Brothers 2, Inc., a California corporation, whose officers are: George Doe, Bill Doe, ard Jane
Doe, which is owned 100% by Acme Brothers 2, LLC, a California limited liability company, which is
managed by George Doe, with George Doe and Jane Doe having 50% interest each.
The full business entity disclosure in this example would resemble the following:
1. Acme Brothers, Inc., a California corporation
a. Officers: .John Doe, Jill Doe, and Jay Doe
b. Ownership:
i. 50% Acme Brothers, LLC, a California limited liability company
ii. 25% John Doe
iii. 25% Jill Doe
2. Acme Brothers, LLC, a California limited liability company
a. Managers: Acme Brothers 2, Inc., a California corporation
b. Ownership: 100% Acme Brothers 2, Inc., a California corporation
3. Acme Brothers 2, Inc., a California corporation
a. Officers: George Doe, Bill Doe, and Jane Doe
b. Ownership: 100% Acme Brothers 2, LLC, a California limited liability company
4. Acme Brothers 2, LLC, a California limited liability company
a. Managers: George Doe
b. Ownership:
i. 50% George Doe
ii. 50% Jane Doe
Item 1R - 8
The full disclosure listing of natural persons with financial interest in Acme Brothers, Inc., a California
corporation, would represent the following:
1. John Doe, 25%
2. Jill Doe, 25%
3. George Doe, 25%
4. Jane Doe, 25%
In order for you, as an applicant, to disclose to appropriate City officials any potential corwlict of
interest, it is critical that all managers, members, corporate officers, and all natural persons having
any financial interest of 5% or more be identified. Failure to identify all such persons may be cause
for any action approved by the City to be declared null and void.
Item 1R - 9
1. Name of Entity
PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
JEN California 3 LLC
2. Address of Entity (Principle Place of Business)
680 5th Avenue, 25th Floor, New York NY 10024
3. Local or California Address (if different than #2)
600 Wilshire Boulevard, Suite 980, Los Angeles CA 90017
4. State where Entity is Registered with Secretary of State
California
If other than California, is the Entitv also reg__istered in California? n Yes n 'lo
5. Type of Entity
D Corporation 0 Umited Liability Company D Partnership D Trust D Other (please specify)
6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify)
Note: If any response is not a natural person, please identify all officers, directors,
members, managers and other fiduciaries for the member, manager, trust or other entity
Reuben Leibowitz D Officer D Director D Member ~ Manag3r
[name]
D General Partner D Limited Partner
•Other
Ethan Leibowitz D Officer D Director D Member ~ Manager
(Revised 09 13 18)
[name]
D General Partner D Limited Partner
•Other
D Officer D Director D Member D Manager
[name]
D General Partner D Limited Partner
•Other
CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
Page 1 of 2
Item 1R - 10
7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity
EXAMPLE
JANE DOE 50%, ABC COMPANY, Inc .
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
A.
David Bloom 15%
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
B.
William Bloom 7%
[name of owner/investor] [percentage of beneficial interest in enti':y
and name of entity]
C.
Reuben Leibowitz 6%
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF
CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Signature of Disclosing Party, Printed Name , Title Date
/~~
Reuben Leibowitz, President May21,2019
CITY OF PALM SPRINGS-PUBLIC INTEGRITY DISCLOSURE FORM
APPLICANT DISCLOSURE FORM
Page 2 of 2
(Revised 09 13.18)
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AUTHORIZING ACCEPTANCE OF THE
SUBDIVISION IMPROVEMENTS ASSOCIATED WITH TRACT
MAP 36689 AND AUTHORIZING RELEASE OF SECURITIES
REQUIRED BY THE SUBDIVISION IMPROVEMENT AGREEMENT
WITH JEN CALIFORNIA 3, INC., A CALIFORNIA LIMITED
LIABILITY COMPANY, FOR PROPERTY LOCATED ON A
ROUGHLY 24-ACRE PARCEL AT THE SOUTHEAST CORNER OF
TAHQUITZ CANYON WAY AND FARRELL DRIVE, IN SECTION
13, TOWNSHIP 4 SOUTH, RANGE 4 EAST.
WHEREAS, the Planning Commission of the City of Palm Springs, at its meeting
of July 23, 2014, recommended approval of Tentative Tract Map 36689, subject to
conditions; and
WHEREAS, the City Council of the City of Palm Springs, (hereinafter the “City”),
at its meeting of September 14, 2014, approved Tentative Tract Map 36689 subject to
conditions, and
WHEREAS, the City Council of the City of Palm Springs, (hereinafter the “City”),
at its meeting of June 20, 2018, adopted Resolution No. 24448, approving Tract Map
36689 and a related Subdivision Improvement Agreement, (Agreement No. 7158), with
Jen California 3, LLC, a California Limited Liability Company, (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 $5,684,000.00 to guarantee construction of certain public improvements
required for and associated with Tract Map 36689, (the “Works of Improvement”); and
WHEREAS, the Developer has completed construction of the Works of
Improvement, and has requested that the City accept the Works of Improvement in
accordance with Section 1.14 of the Subdivision Improvement Agreement; and
WHEREAS, in accordance with Section 4.5 of the Subdivision Improvement
Agreement, the Developer has requested that the City release the subdivision
improvement securities filed with the City Clerk to guarantee construction of the Works of
Improvement; and
WHEREAS, the City Engineer has examined the Works of Improvement, and has
found them to be constructed in accordance with the Subdivision Improvement
Agreement, and the associated plans and specifications; and
WHEREAS, the City Engineer recommends that the City Council accept the Works
Item 1R - 11
of Improvement, and authorize the City Clerk to release the subdivision improvement
securities filed with the City Clerk to guarantee construction of the Works of Improvement,
with the exception of the maintenance and warranty security required by Section 4(b) of
Subdivision Improvement Agreement.
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 finds and determines that the Works of
Improvement have been completed in accordance with the relevant provisions of the
Subdivision Improvement Agreement and the approved plans and specifications, and the
City Council hereby accepts the completed Works of Improvements.
SECTION 3. The City Council’s acceptance of the Works of Improvement
effectuated by this resolution shall not in any way supersede or relieve Jen California 3,
LLC, a California Limited Liability Company,, or its successors and assigns, of any other
obligations required by the Subdivision Improvement Agreement or the conditions of
approval associated with Tract Map 36689.
SECTION 4. The City Council’s acceptance of the Works of Improvement
effectuated by this resolution shall not in any way impose an obligation on the City of
Palm Springs to maintain those improvements that are required to be privately maintained
by a Homeowners Association through Covenants, Conditions and Restrictions
(CC&R’s), including the private streets associated with Tract Map 36689.
SECTION 5. In accordance with Section 4.5(a) of the Subdivision Improvement
Agreement, the City Clerk is hereby authorized to release the following Security
Instruments previously filed with the City Clerk to guarantee construction of the Works
of Improvement:
• Faithful Performance Bond; $5,684,000.00 (93% reduction = $400,000.00)
• Labor and Material Bond; $2,842,000.00 (93% reduction = $200,00.00)
• Monumentation Bond; $30,000.00 (0% reduction)
• Maintenance and Warranty Bond; $852,600.00 (0% reduction)
SECTION 6. In accordance with Section 4.5(b) of the Subdivision Improvement
Agreement, the City Clerk is hereby authorized to release all Bonds for the project,
excluding the Maintenance and Warranty Bond which will be held as security for a period
of one year following the City Council’s acceptance of the Works of Improvement, and
there being no claims regarding defective work associated with the Works of Improvement
having been filed with the City Engineer.
Item 1R - 12
SECTION 7. The City Clerk, following adoption of this resolution, shall file with the
Riverside County Recorder, the Acceptance of the Works of Improvement Certificate
attached hereto.
ADOPTED THIS 27TH DAY OF JANUARY, 2022.
JUSTIN CLIFTON
CITY MANAGER
ATTEST:
ANTHONY J. MEJIA, MMC
CITY CLERK
Item 1R - 13
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. ________________ 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 January 27, 2022,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Springs, California, this ______ day of ______________, _________.
ANTHONY J. MEJIA, MMC
CITY CLERK
Item 1R - 14
Acceptance of the Works of Improvement Certificate follows this page.
Item 1R - 15
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN
TO:
City Clerk
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
SPACE ABOVE THIS LINE FOR RECORDER’S USE
Exempt from recording fees under Government Code §6103
Acceptance of the Works of Improvement Certificate
Tract Map 36689
Subdivision Improvement Agreement (A7158)
The undersigned, City of Palm Springs, a California charter city and municipal
corporation, (hereafter the “City”), hereby confirms that on January 27, 2022, the
City Council of the City accepted the Works of Improvement associated with Tract
Map 36689 to be constructed by or on behalf of Jen California 3, LLC, a California
Limited Liability Company, and/or its successors and assigns, (collectively, hereafter
the “Developer”), pursuant to that certain Subdivision Improvement Agreement
(A7158) by and between the City and Developer recorded on August 19, 2018, as
Document No. 2018-0375377, records of Riverside County Recorder, (hereafter
the “Agreement”). The City hereby releases the Developer from its performance
obligations to construct the Works of Improvement as set forth in the Agreement,
and hereby releases the Security Instruments filed with the City Clerk pursuant to
and in accordance with the Agreement. This Acceptance Certificate is applicable
to those Works of Improvement associated with Tract Map 36689, identified as that
certain real property more particularly described in Exhibit “A” attached hereto.
[SIGNATURES ON NEXT PAGE]
Item 1R - 16
City of Palm Springs, a California
charter city and municipal
corporation
Dated: ______________________
Justin Clifton, ICMA-CM, City Manager
Attest: Approved as to form:
Anthony J. Mejia, City Clerk Jeff Ballinger, City Attorney
Item 1R - 17
EXHIBIT “A”
Tract Map No. 36689 filed in the office of the County Recorder, County of
Riverside, State of California, in Book 462 of Maps at Pages 89 through 96.
Item 1R - 18