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HomeMy WebLinkAbout1S OCR 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. [SIGNATURES ON NEXT PAGE] 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