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CITY COUNCIL STAFF REPORT
DATE: February 24, 2022 CONSENT CALENDAR
SUBJECT: APPROVAL OF AGREEMENT BETWEEN THE COACHELLA VALLEY
ASSOCIATION OF GOVERNMENTS (CVAG) AND THE CITY OF PALM
SPRINGS FOR THE TRANSFER OF PRIVATE DEVELOPER FUNDS TO
CVAG RELATING TO CONSTRUCTION OF THE CV LINK PROJECT
WITHIN PALM SPRINGS
FROM: Justin Clifton, City Manager
BY: Engineering Division
SUMMARY:
This action requests City Council approval of an Agreement with the Coachella Valley
Association of Governments (CVAG) to allow the transfer of private developer funds to
CVAG for two segments of the proposed CV Link adjacent to Tract 32233 (the Escena
Project, or “Escena”), and Tract 31848 (the Miralon Project, or “Miralon”), within the City
of Palm Springs.
RECOMMENDATION:
1) Approve Agreement No. _____, an Agreement by and between the City of Palm
Springs and the Coachella Valley Association of Governments (CVAG) to allow for
the transfer of $1,063,044 private developer funds to CVAG relating to the
construction of the CV Link project adjacent to Tract 32233 (the Escena Project,
or “Escena”) and Tract 31848 (the Miralon Project, or “Miralon”); and
2) Authorize the City Manager to execute all necessary documents.
BACKGROUND:
The CV Link Multi-Modal Transportation Project (CV Link) is a proposed 49-mile multi-
modal path that will provide access and connectivity between residential, commercial,
recreational, and institutional uses throughout seven cities in the region from Palm
Springs to Coachella (excluding Rancho Mirage and Indian Wells). The CV Link project
begins at the Palm Springs Visitor’s Center on Highway 111 (North Palm Canyon Drive)
in northern Palm Springs with a highly visible access point at the City’s public parking lot
adjacent to the Visitor’s Center and ends in Coachella along the Whitewater River at
Airport Boulevard.
Item 1D - 1
City Council Staff Report
February 24, 2022 -- Page 2
Agreement Between CVAG and CPS for Transfer of Developer Funds
The CV Link route largely follows, and is to be built upon, the levees of the region’s
principal watercourses, including Chino Wash, Tahquitz Creek, and the Whitewater River
Stormwater Channel. In some locations, the pathway shares right-of-way with roads and
provides direct access to key commercial districts and recreational and institutional
venues. The CV Link will also incorporate and expand the Tahquitz Creek Trail in Palm
Springs between South Palm Canyon Drive and the Whitewater Channel.
On May 3, 2017, the City Council discussed CV Link as proposed by CVAG. As CVAG is
the Lead Agency for the CV Link project, the City Council approved CV Link and provided
direction to the Mayor as Palm Springs’ member of the CVAG Executive Committee to
affirmatively vote in support of certifying the Final Environmental Impact Report for the
project.
At the May 15, 2017, CVAG Executive Committee meeting, CVAG officially approved and
certified the CV Link project. Subsequently, CVAG has proceeded with the design and
right-of-way phases of the CV Link project.
On June 11, 2020, the City Council authorized the City Engineer to issue encroachment
permits for the construction of the CV Link across City properties and within City Rights-
of-Way. A copy of the staff report is on file with the City Clerk.
STAFF ANALYSIS:
CVAG has successfully programmed and obligated state and federal funds for
construction of CV Link and is preparing to start construction of certain segments within
Palm Springs later this year.
Prior to the CV Link becoming a regional transportation project, the City routinely
conditioned development projects to provide pedestrian and bicycle facilities in and
around the proposed projects. Both the Escena and Miralon projects were conditioned to
build a dual bike/pedestrian facility adjacent to their project.
CVAG and the City of Cathedral City worked together to construct the first leg of the CV
Link along the Whitewater Wash (Figure 1), adjacent to the Escena project. Given that
CVAG/Cathedral City constructed CV Link, an obligation otherwise required of the
developer (Lennar), the City required Lennar to provide the City with payment for the
estimated construction cost of $364,500.
On October 29, 2019, CVAG submitted a formal request to the City of Palm Springs
(Attachment A) for liquidation of the bonds posted by Freehold Communities, LLC
(Freehold), the Miralon developer, in the amount of $698,544. As with the Escena project,
CVAG will be constructing the CV Link bike path along the Miralon development (Figure
2) that would have been the obligation of Freehold. Approval of this agreement will allow
for the transfer of private developer funds to CVAG and facilitate the development of the
CV Link project within the City of Palm Springs.
Item 1D - 2
City Council Staff Report
February 24, 2022 -- Page 3
Agreement Between CVAG and CPS for Transfer of Developer Funds
Figure 1 – CV Link Miralon River Segment
Figure 2 – CV Link Escena Segment
MIRALON CV Link SEGMENT
ESCENA CV Link SEGMENT
Item 1D - 3
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City Council Staff Report
February 24, 2022 -- Page 4
Agreement Between CVAG and CPS for Transfer of Developer Funds
ENVIRONMENTAL ASSESSMENT:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines the
requested City Council action is not a “Project” pursuant to Section 15378(b)(5).
Organizational or administrative activities of governments that will not result in direct or
indirect physical changes in the environment are not considered a “Project”.
FISCAL IMPACT:
This Council action has no fiscal impact. The funds to be transferred to CVAG were
collected from the respective developers of the Escena and Miralon projects in August
2020 and have been held in a Trust and Agency account.
REVIEWED BY:
City Engineer: Joel Montalvo
Deputy City Manager: Flinn Fagg
City Manager: Justin Clifton
ATTACHMENTS:
A. CVAG Letter Requesting Funds.
B. CVAG CPS Agreement.
Item 1D - 4
Item 1D - 5
October 29, 2019
Marcus Fuller
Assistant City Manager/City Engineer
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
REF: Miralon Development Bonds
~ Dear Mr. Fuller:
Thank you for your continued collaboration on the CV Link project. As you know, we are
working on obtaining right-of-way easements for CV Link.
It is our understanding that the developer for the Miralon development project has a
requirement to construct a bike path along the levee of the Whitewater River, as required
by Engineering Condition #86 (attached) of the Tentative Map .
Also, there was a faithful performance bond for this path that has been posted by the
developer for this off-site improvement in the amount of $698,544, as required under the
Section 1, Construction Obligations, Sub-Section 1.2(a) of the Subdivision Improvement
Agreement (attached).
We respectfully request that the City of Palm Springs liquidate the bonds for construction
of that portion of CV Link on the levee adjacent to the Miralon development between N.
Indian Canyon Drive and Sunrise Way connector to CV Link. The potential start date of
construction is October 2020 and we expect we will need the funds at least 90 days prior
to construction. CVAG will enter into an agreement with the City to facilitate the payment
of Miralon's funding for CV Link.
Pursuant to Section 6.0 (Project Funding Source) of CVAG's Policy and Procedures
Manual, regional transportation funds are meant to supplement, not to replace, local
revenues and/or developer contributions required for approved projects. As such, all
CVAG member agencies require the construction of improvements adjacent to all land
development projects first before CVAG funding sources are utilized. This helps preserve
CVAG's cash flow to maintain funds for other regional transportation improvement
projects in the valley.
Item 1D - 6
I want to thank the City for continuing to condition projects to install a bike path on the
levee which has been in the City's General Plan for years.
I look forward to your continued support on CV Link. Should you have any questions or
need additional information, please do not hesitate to call me at (760) 346-1127.
?i:=
Tom Kirk
Executive Director
c: file
2
55575.18120\33219752.1
AGREEMENT BETWEEN THE CITY OF PALM SPRINGS AND THE COACHELLA
VALLEY ASSOCIATION OF GOVERNMENTS REGARDING
THE FUNDING OF THAT PORTION OF CVLINK ADJACENT TO MIRALON AND
ESCENA DEVELOPMENT PROJECTS
THIS AGREEMENT is entered into as of this ____ day of ______________, 2022, by
and between the City of Palm Springs, a municipal corporation and charter city (“City”) and the
Coachella Valley Association of Governments, a joint powers authority (“CVAG”). City and
CVAG are sometimes hereinafter individually referred to as a “Party” and/or collectively
referred to as the “Parties.”
RECITALS
WHEREAS, the developer of the Miralon (formerly Avalon) development was
conditioned by the City, as a condition of approval of Miralon’s development project, to build a
12 foot wide combination pedestrian and bicycle path along both sides of the entire project
frontage, including, for purposes of this Agreement, along the levee of the Whitewater River (the
“Miralon Bikepath Project”). Such condition was contained in conditions 18d and Eng. 86 of
City Resolution 20920, dated May 5, 2004; and
WHEREAS, in 2016, Freehold Communities, LLC purchased the Miralon development
project; and
WHEREAS, City Resolution 24126, dated November 2, 2016 included condition Eng.
87, which reinforced the Miralon Bikepath Project requirement; and
WHEREAS, Freehold Communities, LLC posted a faithful performance bond (No.
1083526), in the amount of $698,544, securing the construction of the Miralon Bikepath Project;
and
WHEREAS, CVAG has developed the CVLink, multi-modal transportation project,
which includes 15.3 miles within the City; and
WHEREAS, as part of the CVLink, CVAG proposes to build a segment of CVLink in
what would have been the Miralon Bikepath Project; and
WHEREAS, as such, on October 29, 2019, CVAG formerly requested that the City
liquidate the $698,544 bond posted by Freehold Communities, and on November 21, 2019, the
City agreed and formerly requested Freehold Communities to liquidate bond no. 1083526; and
WHEREAS, Freehold Communities, LLC agreed to provide a check for the performance
bond’s principal amount ($698,544) and the City has agreed to release the bond for the Miralon
Bikepath Project, and the City is now in possession of the check in the amount of $698,544; and
WHEREAS, the developer of the Escena project (Tract 32233-1), Palm Springs Classic,
LLC was conditioned to construct an equestrian trail and bikeway along the Whitewater Wash,
as identified in the City’s General Plan (the “Escena Bikepath Project”; collectively, the
Item 1D - 7
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55575.18120\33219752.1
“Miralon Bikepath Project” and the “Escena Bikepath Project” will be referred to as the
“Bikepath Project”); and
WHEREAS, CVAG has since constructed said bikepath as part of CVLink, and Palm
Springs Classic, LLC has provided the City with $364,500 as the estimated cost of constructing
said bikepath; and
WHEREAS, the City and CVAG wish to enter into this Agreement in order to provide
for the transfer of the private developer funds, in the amount of $698,544 for the Miralon
Bikepath Project and $364,500 for the Escena Bikepath Project, to CVAG, in order for CVAG to
use toward, or reimburse CVAG for, the construction of that portion of CVLink on the levee
adjacent to the Miralon project, between N. Indian Canyon Drive and Sunrise Way, and Escena
project along the Whitewater Channel.
NOW, THEREFORE, the Parties mutually agree as follows:
1. Incorporation of Recitals
The foregoing recitals are true and correct.
2. Location
The Miralon Bikepath Project will be located along the levee adjacent to the
Miralon development, between N. Indian Canyon Drive and Sunrise Way, in the
City of Palm Springs, California. The Escena Bikepath Project is located along
the Whitewater Channel, adjacent to the Escena development project.
3. Installation of Bikepath Project
CVAG has installed, will install, or cause to be installed, the Bikepath Project, at
CVAG’s sole cost and expense (except as specifically provided for otherwise in
Section 5.
4. Operation and Maintenance
CVAG shall thereafter operate and maintain, or cause to be operated and
maintained, the Bikepath Project, at CVAG’s sole cost and expense (except as
specifically provided for otherwise in Section 5.
5. Miralon Project Funding
Pursuant to Section 6.0 (Project Funding Source) of CVAG’s Policy and
Procedures Manual, regional transportation funds are meant to supplement, not to
replace, local revenues and/or developer contributions for approved projects. As
such, City will transfer to CVAG the $698,544 that has been provided to City by
Freehold Communities, LLC for the Miralon Bikepath Project and $364,500 for
the Escena Bikepath Project. Said payment will be paid by City to CVAG within
fifteen (15) days following approval and the full execution of this Agreement.
Item 1D - 8
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55575.18120\33219752.1
6. Indemnification/Insurance
Each Party hereto shall indemnify, defend and hold the other Party and its
officers, agents, servants and employees harmless from any and all liabilities,
claims, demands, debts, suits, actions and causes of actions, including but not
limited to, property damage, personal injury or wrongful death, arising out of or in
any manner connected with any act or omission of such indemnifying Party
hereunder, or its officers, agents, servants or employees, done or performed
pursuant to the terms and provisions of this Agreement.
CVAG shall require any contractor on the Miralon Bikepath Project construction
to include the City, its elected officials, officers, employees and agents as
additional insureds on said contractor’s liability insurance for the portion of work
covered by this Agreement.
7. No Joint Venture/Partnership
The Parties are not engaged in any partnership or joint venture of any kind.
8. Legal Relations and Responsibilities
Nothing in the provisions of this Agreement is intended to create duties or
obligations to, or rights in, those not a party to this Agreement.
9. Term
This Agreement shall become effective upon the full execution by both Parties,
and shall continue in effect until all obligations of all Parties hereto have been
complied with.
10. Anti-Discrimination
Pursuant to Palm Springs Municipal Code section 7.09.040, CVAG and its
contractor(s) on the Bikepath Project shall be prohibited from discriminating on
the basis of actual or perceived race, color, religion, ancestry, national origin,
disability, medical condition, marital status, domestic partner status, sex, gender,
gender identity, gender expression, or sexual orientation as these terms are
defined by California Law, or association with members of classes protected
under this Section or in retaliation for opposition to any practices forbidden under
this paragraph, against any person seeking accommodations, advantages,
facilities, privileges, or services, or membership in all business, social, or other
establishments or organizations, operated by CVAG and the contractor(s), and
CVAG shall require such every sub-contractor all of its contractors to include a
similar provision in all subcontracts entered into in performance of this
Agreement.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed as of the
date first written above.
Item 1D - 9
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55575.18120\33219752.1
CITY OF PALM SPRINGS, a municipal
corporation and charter city
By: ____________________________
Justin Clifton
City Manager
COACHELLA VALLEY ASSOCIATION
OF GOVERNMENTS, a joint powers
authority
By: ____________________________
Tom Kirk
Executive Director
ATTEST:
By: ___________________________
Anthony J. Mejia, MMC
City Clerk
APPROVED AS TO LEGAL FORM:
By: ____________________________
Jeffrey S. Ballinger
City Attorney
APPROVED AS TO LEGAL FORM:
By: ____________________________
Michael Jenkins
Legal Counsel
Item 1D - 10