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CITY COUNCIL STAFF REPORT
DATE: January 27, 2022 CONSENT CALENDAR
SUBJECT: ACCEPTANCE OF PUBLIC IMPROVEMENTS AND AUTHORIZATION TO
RELEASE SUBDIVISION IMPROVEMENT SECURITIES FOR THE “ICON
DEVELOPMENT – FAR WEST INDUSTRIES, A CALIFORNIA
CORPORATION”, TRACT MAP 36725
FROM: Justin Clifton, City Manager
BY: Development Services Department
SUMMARY:
On January 7, 2015, the City Council approved Tract Map 36725 and a subdivision
improvement agreement with Far West Industries, a California Corporation (“Developer”),
securing the Developer’s completion of certain required public and private improvements
associated with Tract Map 36725. 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 36725 AND
AUTHORIZING RELEASE OF SECURITIES REQUIRED BY THE SUBDIVISION
IMPROVEMENT AGREEMENT WITH FAR WEST INDUSTRIES, (A7028), FOR
PROPERTY LOCATED AT THE SOUTHEAST CORNER OF NORTH PALM CANYON
DRIVE AND ALVARADO ROAD, IN SECTION 3, TOWNSHIP 4 SOUTH, RANGE 4
EAST”.
BUSINESS PRINCIPAL DISCLOSURE:
The Public Integrity Disclosure Form from Far West Industries, a California Corporation,
is included as Attachment A.
BACKGROUND:
At its meeting of December 10, 2014, the Planning Commission recommended approval
of Tentative Tract Map 36725, which was subsequently approved by the City Council,
Item 1S - 1
subject to conditions, on January 7, 2015. Tentative Tract Map 36725 is located at the
Southeast corner of North Palm Canyon Drive and Alvarado Road, as shown in the
following site map.
Site Map – TM 36725
On July 19, 2017, the City Council adopted Resolution No. 24278, approving Tract Map
36725 and an associated Subdivision Improvement Agreement, (SIA), with the
Developer. Tract Map 36725 created a subdivision of 46 Condominium Units and
infrastructure. The SIA and Tract Map 36725 are on file with the City Clerk.
Associated with Tract Map 36725 was a requirement to construct certain public and
private improvements, including:
Item 1S - 2
• On-site private street and storm drainage improvements
• On-site sewer and domestic water system improvements
• Off-site street improvements
At the time Tract Map 36725 was approved by the City Council, construction of required
public and private improvements associated with Tract Map 36725 (the “Works of
Improvement”) had not been completed. An engineer’s estimate of the cost of the Works
of Improvement to be completed was $3,100,000.
In accordance with Section 66462 of the California Government Code, the Developer
requested that the City enter into the SIA securing the cost of the Works of Improvement
not yet completed to the City’s satisfaction. 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 October 23, 2019, the City Council authorized reductions of
subdivision improvement securities:
• Faithful Performance Bond No. 391100P; $3,100,000 (Reduced to $100,000)
• Labor and Material Bond No. 391100P; $1,550,000 (Reduced to $50,000)
• Monumentation Bond No. 391094P; $3,000 (0% reduction)
• Maintenance and Warranty Bond; $465,000 (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:
Tentative Tract Map 36725 was considered a “Project” pursuant to the California
Environmental Quality Act (“CEQA”) Guidelines. The City, acting as Lead Agency
pursuant to CEQA, prepared an Initial Study for Tentative Tract Map 36725. On January
7, 2015, the City Council adopted Resolution No. 23742 adopting the Mitigated Negative
Declaration and approving Tentative Tract Map 36725. No further action with regard to
CEQA is required to approve the final map for TTM 36725.
Item 1S - 3
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
pursuant to the Covenants, Conditions and Restrictions (CC&Rs) recorded against the
properties within Tract Map 36725.
REVIEWED BY:
Department Director: Flinn Fagg
City Manager: Justin Clifton
ATTACHMENTS:
A. Public Integrity Disclosure.
B. Resolution.
Item 1S - 4
Item 1S - 51. Name of Entity PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM Far West Industries 2. Address of Entity (Principle Place of Business) 2922 Daimler St., Santa Ana, CA 92705 3. Local or California Address (if different than #2) 4. State where Entity is Registered with Secretary of State California If other than California, is the Entity also registered in California? D Yes D No 5. Type of Entity [8] Corporation D Limited 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 Scott Lissoy Albert 0. Lissoy Ira Glasky (Revised 05/16/19) [8] Officer D Director D Member D Manager [name] D General Partner D Limited Partner •other [8] Officer D Director D Member D Manager [name] D General Partner D Limited Partner •other [8] 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 1S - 67. 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. Lissoy Family Trust u/~f o roj,.., I 1, 100% [name of owner/investor] [percentage of beneficial interest in entity and name of entity] B. [name of owner/investor] [percentage of beneficial interest in entity and name of entity] C. [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 Disclo ing Party, Printed Name, Title Date PENALTIES Falsification of information or failure to report information required to be reported may subject you to administrative action by the City. (Revised 05/16/19) CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM Page 2 of 2
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 36725 AND
AUTHORIZING RELEASE OF SECURITIES REQUIRED BY
THE SUBDIVISION IMPROVEMENT AGREEMENT WITH
FAR WEST INDUSTRIES, (A7028), FOR PROPERTY
LOCATED AT THE SOUTHEAST CORNER OF NORTH
PALM CANYON DRIVE AND ALVARADO ROAD, IN
SECTION 3, TOWNSHIP 4 SOUTH, RANGE 4 EAST.
WHEREAS, the Planning Commission of the City of Palm Springs, at its meeting
of December 10, 2014, recommended approval of Tentative Tract Map 36725, subject to
conditions; and
WHEREAS, the City Council of the City of Palm Springs, (hereinafter the “City”),
at its meeting of January 7, 2015, approved Tentative Tract Map 36725 subject to
conditions; and
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. A7028), 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 $3,100,000.00 to guarantee construction of certain public improvements
required for and associated with Tract Map 36725, (the “Works of Improvement”); and
WHEREAS, the Developer has 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 and completed 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
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,
Item 1S - 7
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 Far West
Industries, a California Corporation, or its successors and assigns, of any other
obligations required by the Subdivision Improvement Agreement or the conditions of
approval associated with Tentative Tract Map 36725.
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 36725.
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; $3,100,000.00 (reduced to = $100,000.00)
• Labor and Material Bond; $1,550,000.00 (reduced to = $50,000.00)
• Monumentation Bond; $3,000.00
• Maintenance and Warranty Bond; $465,000.00
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.
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.
Item 1S - 8
ADOPTED THIS 27TH DAY OF JANUARY, 2022.
JUSTIN CLIFTON
CITY MANAGER
ATTEST:
ANTHONY J. MEJIA, MMC
CITY CLERK
Item 1S - 9
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 1S - 10
Acceptance of the Works of Improvement Certificate follows this page.
Item 1S - 11
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 36725
Subdivision Improvement Agreement (A7028)
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 36725 to be constructed by or on behalf of Far West Industries, a California
Corporation, and/or its successors and assigns, (collectively, hereafter the
“Developer”), pursuant to that certain Subdivision Improvement Agreement
(A7028) by and between the City and Developer recorded on October 3, 2017, as
Document No. 2017-0409752, 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 36725, identified as that
certain real property more particularly described in Exhibit “A” attached hereto.
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Item 1S - 12
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 1S - 13