HomeMy WebLinkAbout11/1/2006 - STAFF REPORTS - 2.I.CITY COUNCIL STAFF REPORT
DATE: November 1, 2006
CONSENT CALENDAR
SUBJECT: EXTENSION OF RETENTION PERIOD FOR PROPERTY ACQUIRED BY
COMMUNITY REDEVELOPMENT AGENCY USING MONIES FROM
LOW AND MODERATE INCOME HOUSING FUND AND AUTHORIZE
STAFF TO FINALIZE AND ISSUE A REQUEST FOR PROPOSALS FOR
THE DEVELOPMENT OF THE SITE WITH MODERATE -INCOME, FOR -
SALE HOUSING
FROM: David H. Ready, City Manager
BY: COMMUNITY AND ECONOMIC DEVELOPMENT
SUMMARY
This resolution extends for an additional five years the period that the Community
Redevelopment Agency of the City of Palm Springs ("Agency") may retain a property
(APN 501-031-028) previously acquired using monies from the Low and Moderate
Income Housing Fund for the development of housing affordable to persons and
families of low and moderate income. The purpose of the extension is to enable the
Agency to comply with California Redevelopment Law Section 33334.16 which, barring
an extension from the City Council as the legislative body, prohibits redevelopment
agencies from retaining such properties longer than five years without initiating specific
development activities.
Agency staff has prepared a Request for Proposals seeking qualified developers to
construct for -sale, affordable housing targeted to moderate income households, using
green building technologies. That RFP will be circulated in November and December,
2006 with the successful proposer entering an Exclusive Agreement to Negotiate in
early 2007.
RECOMMENDATION:
1. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, EXTENDING THE PERIOD FOR
RETAINING PROPERTY ACQUIRED BY COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM SPRINGS USING MONIES FROM LOW
AND MODERATE INCOME HOUSING FUND: and
Item No. 2.1 .
City Council Staff Report
November 1, 2006 -- Page 2
Extension of Time Period for Owning Land Acquired for Low Income Housing
2. AUTHORIZE STAFF TO FINALIZE AND ISSUE A REQUEST FOR PROPOSALS
FOR THE DEVELOPMENT OF THE SITE WITH MODERATE -INCOME, FOR -SALE
HOUSING
STAFF ANALYSIS:
In 1999 the Garden Springs Apartment site was proposed by the Developer, CBM
Group of Auburn, California, as 60 low- and very low-income apartment units, including
28 two -bedroom units, 24 three -bedroom units, and 8 four -bedroom units ranging in size
From 904 square feet to 1,403 square feet. The 60 units were to be contained in four
'two-story buildings, with each building containing from 12 to 16 units. The project, while
receiving several reductions in development standards and a density bonus required
under Section 65915 of the California Government Code, contained significant
architectural and landscaping upgrades as well a day care center and tot lot. This
project would have helped the City meet its requirements to provide affordable housing
under California law.
The project was originally approved by City Council on January 19, 2000. In February,
2000 the Developers requested Community Redevelopment Agency assistance,
specifically related to the cost of undergrounding the utility lines that surround the
property. The undergrounding portion was part of the Engineering Conditions of
Approval when the City Council approved the project. The estimated cost of the
undergrounding, as calculated by the Developer's utility consultant, was $650,300 and
later revised to over $900,000.
The project was delayed from February into April, 2000 because of a citizen's petition
asking to overturn the approval. The decision not to place the issue on a special
election ballot, based on California law, was made by the Council in April, 2000 but
project construction did not get underway until nearly the end of June- By early August,
the general partner determined that because of the IRS' absolute December 31, 2000
completion deadline for receipt of their 9% tax credits it was more financially prudent to
shut down the project than to continue and risk losing the tax credits.
Agency staff worked with the Developer on restructuring the financing of the project. In
2001 the Agency agreed, through a Disposition and Development Agreement, to pay
the Developer $600,000 for the 3.63 acre site as well as an additional $500,000 spread
over five payments once the construction on the project commenced. The DDA was
structured according to a Settlement Agreement negotiated by the City and Garden
Springs Apartments to settle litigation brought by the Developer against the City of Palm
Springs. The Agency agreed to contribute the land to the project when the project was
fully funded, all permits were obtained, and the Developer was prepared to commence
construction. The Agency retained reverter rights if the Developer failed to proceed or
complete the project. In addition, the Agency agreed to assist the Developer in applying
for Low Income Housing Tax Credits.
City Council Staff Report
November 1, 2006 -- Page 3
Extension of Time Period for Owning Land Acquired for Low Income Housing
The Developer sought since August, 2000 to restructure the project financing in order to
complete the project. The Developer reapplied for 9% tax credits (LIHTC), and Agency
financial participation in the project was to have made the developer's LIHTC
application much stronger and make the project more likely to be built. However, the
DDA expired without the Developer ever successfully restructuring the financing and
moving forward on the project. The Agency closed on the purchase of the land in
September, 2001, which means it must have conveyed it for development by
September, 2006 under state redevelopment law, which limits the time an agency may
hold land acquired with Low -Mod Setaside Funds to no more than five (5) years;
therefore, the Agency must dispose of or cause the development of a low or moderate
income project by September 2006.
For properties such as these, acquired using monies from the Low and Moderate
Income Housing Fund, California Redevelopment Law Section 33334.16 requires the
Agency within five years from the date it first acquires the property to initiate activities
consistent with the development of the property for housing affordable to persons and
families of low and moderate income. These activities may include, but are not limited
to, zoning changes or agreements entered into for the development and disposition of
the property. If these activities have not been initiated within this period, the City
Council as the legislative body may, by resolution, extend the period during which the
Agency may retain the property for one additional period not to exceed five years.
The resolution of extension must affirm the intention of the legislative body that the
property be used for the development of housing affordable to persons and families of
low and moderate income. In the event that physical development of the property for
this purpose has not begun by the end of the extended period, the property shall be sold
and the proceeds deposited in the Agency's Low and Moderate Income Housing Fund.
In addition, the Agency is being asked to authorize the release of the RFP for affordable
(moderate -income) for sale housing on either the site.
FISCAL IMPACT: IFinance Director Review:
There is no fiscal impact to the extension of time period for holding the land. The RFP
may result in a request for subsidy for the development of the for -sale housing, though
that amount is currently to able to be determined.
City Council Staff Report
November 1, 2006 -- Page 4
Extension of Time Period for Owning Land Acquired for Low Income Housing
Jahn S. ay o d, Director of
ity & onomic Development
DAVID H. READY, —
Executive Director
ATTACHMENTS:
om Wilson
Assistant City kfanager
Resolution Approving Extension of Time Period for Owning Property
Draft RFP for Moderate -Income For -Sale Housing
City Council Staff Report
November 1, 2006 -- Page 5
Extension of Time Period for Owning Land Acquired for Low Income Housing
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, EXTENDING THE PERIOD FOR
RETAINING PROPERTY ACQUIRED BY COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM
SPRINGS USING MONIES FROM LOW AND MODERATE
INCOME HOUSING FUND
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs,
California ("Agency") is constituted under the Community Redevelopment Law
(California Health and Safety Code Section 33000 et. seq.) to carry out the purpose of
redevelopment in the City of Palm Springs, California ("the City"); and
WHEREAS, the Agency owns a property described as APN 501-031-028, 3.63 acres at
the southeast corner of Indian Canyon Drive and San Rafael Road, having been
received by Grant Deed dated September 16, 2001 from Garden Springs Apartments,
LLC, shown in Exhibit A; and
WHEREAS, barring an extension from the City Council, California Redevelopment Law
(CRL), Health and Safety Code Section 33334.16 prohibits the Agency from retaining
such properties longer than five years without initiating specific activities for the
development of the properties for housing affordable to persons and families of low and
moderate income; and
WHEREAS, CRL Health and Safety Code Section 33334.16 allows that the City Council
as the legislative body may "by resolution, extend the period during which the Agency
may retain the property for one additional period not to exceed five years".
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE
AS FOLLOWS:
SECTION 1. The above recitals are true and correct and incorporated herein.
SECTION 2. The intention of the City Council is hereby affirmed that these
properties be used for the development of housing affordable to
persons and families of low and moderate income.
SECTION 3. The period during which the Agency may retain these properties for
the above -stated purposes is extended five years until September
16, 2011.
City Council Staff Report
November 1, 2006 -- Page 6
Extension of Time Period for Owning Land Acquired for Low Income Housing
ADOPTED THIS 1st day of November, 2006.
ATTEST:
.Dames Thompson, City Clerk
David H. Ready, City Manager
[NA09lti[NG4111111511111]►1
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS)
I, JAMES THOMPSON, 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
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Community Redevelopment Agency of
The City of Palm Springs, California
For -Sale Multi -Family Housing
for Moderate Income Families
Using "Green Building"
Technologies
Request for Qualifications and
Conceptual Proposals
November 6, 2006
BACKGROUND
The Community Redevelopment Agency of the City of Palm Springs is seeking housing
developers for the potential development of up to thirty attached single family homes or
condominiums in the north end of"Palm Springs, California (see Attachment A with map
and legal description). The Agency currently owns the identified property and is seeking
a private developer interested in partnering to develop the property with for -sale
attached single family homes or condominiums for moderate -income households.
Additionally, the Agency wishes to create incentives for the use of energy -saving,
renewable, and recycled building materials in the development of the project.
The property is located within the R-2 zone and is situated adjacent to developed single-
family home residential areas to the east and other multi -family projects to the south.
Most notable are a row of historic homes along the east property boundary known as the
"Donald Wexler Steel Homes," Property to the north is currently under development with
market rate condominiums. The Agency has determined that the property provides an
opportunity to develop new, quality "for sale" single family homes to help meet a need
that is currently not being fully met within the community. A previous affordable 60-unit
rental housing project was proposed on the property but ultimately was not developed
for lack of project financing.
The Agency review of proposals submitted in response to this RFP will focus on the
proposals' fulfillment of four major policy objectives, which can be described as follows:
• To provide quality affordable home ownership opportunities in the City of Palm
Springs;
• To maximize the quality and affordability of the homes being developed;
• To create home ownership opportunities for low and moderate income
households living and/or working within the City of Palm Springs,
• To successfully incorporate energy -saving, renewable, and recycled building
materials into the project.
Minority- and women -owned firms and local developers and contractors are especially
encouraged to submit proposals for the Agency's consideration.
II. DEVELOPMENT OPTIONS & AGENCY ASSISTANCE
The Agency is seeking a developer that will provide quality housing opportunities for low
and moderate income families and enhance the overall quality of the surrounding
neighborhood through quality building design and landscaping. To ensure that the
housing being proposed is available to moderate income households, occupants of the
housing development shall meet the income guidelines outlined in Table No. 1 below.
TABLE 1. AFFORDABILITY GUIDELINES'
Maximum Income Limits
CATEGORY NUMBER OF PERSONS IN HOUSEHOLD
1 2 3 4 5 6 7 8
MODERATE
INCOME ANNUAL 46,750 53,450 60,100 66,800 72,150 77.500 82,850 88,200
HOUSEHOLD INCOME
120% OF MCDIAN _
'Based on median income for Riverside County, adjusted for family size. Source: HUD FY 2002 Section 8
Income Limits effective January 1, 2005.
The Agency proposes that the Developer construct up to thirty (30) homes on the lot at a
price affordable to moderate income households. The Redevelopment Agency would
create a buyer assistance program that would be available to buyers of the homes as
well to increase the affordability of the homes. Staff will analyze the Developer's pro
forma against the model pro forma for subsidized single family housing created by the
National Development Council (NDC). Within the pro forma are the following
assumptions: (1) that the Developer pays the appraised value for the lot; (2) that the
Developer is entitled to a developer profit; (3) that both hard and soft costs are part of
the project costs; and (A) that the Developer has set a home price that is competitive in
the market (at market or slightly below).
The subsidy provided by the Agency, per home, could be up to $25,000-$35,000; most
of that could be accomplished by the contribution of the per unit lot value to the buyer.
(The Developer Will pay the Agency fair market value for the lot, though the terms could
be flexible so that the subsidy could then be passed on to the buyer.)
The buyer's subsidy would be included in the financing as a "silent second" loan. In
addition, Redevelopment Law requires that subsidized for -sale housing have a provision
that requires an "equity sharing" provision in the CC &Rs for a period of time.
An example of two mortgage scenarios is attached as Exhibit _; one includes a family at
the high end of the moderate income range and the other is a smaller household size_
The amount of purchase assistance provided by the Agency, if any, is negotiable and
will vary from homeowner to homeowner_ Developers should obtain construction and
permanent mortgage financing from their own sources.
III. DEVELOPMENT GUIDELINES
The following development guidelines for the properties are intended to serve as
general parameters for design of the proposed homes. They are also meant to
ensure that appropriate amenities are incorporated into the proposed design and to
promote the completion of homes which meet the highest standards for quality.
The properties must be constructed as single family attached homes or
condominiums in accordance with development guidelines for R-2 zoning.
The architectural standards and construction quality of the units must be
commensurate with or higher than the City's established standards.
Construction shall be consistent with City building codes. The project
must use alternative materials and/or construction methods, however, there is no
provision for a reduction in the overall quality of design or construction.
It shall be the sole responsibility of the developer to refine the RFP development
guidelines for their unique development through further research and discussions with
City staff (i.e., Planning, Engineering, Building and Safety, and Fire) to ensure full
compliance with all applicable State, County and City Codes, while achieving the highest
degree of quality housing. Development proposals shall be based on current municipal
codes, standards and policies and not on the necessity for adjusting existing
development standards in order for the development proposal to be viable.
OV. SUBMITTAL REQUIREMENTS
Five (5) copies of the comprehensive proposal shall be submitted to the Agency for
consideration and contain all of the required elements listed below:
A. DEVELOPER QUALIFICATIONS
Development Entity. Name and address of developer; phone and
fax numbers; e-mail address (if applicable). Identification of all
joint venture or limited partners with whom the Agency would
contract for development. Is the developer a subsidiary of, or
affiliated with, any other corporation(s) or firms? If yes, list each
such corporation or firm by name and address, specify its
relationship to the developer and such other corporation or firm.
2. Development Team. Identify the role of each development partner
in the implementation of the development. Identify and describe
role of key individuals in the development team (architects,
engineers, project manager, and others), who would be involved
in the implementation, including their relevant experience. Also
identify the party who will be responsible, and has the authority to
make decisions for the development team.
Include resume of the developer describing the qualifications of
the developer as well as recent housing development experience.
If the proposal is based upon a development team, the resumes of
each team member and their respective roles should be
submitted.
3. Developer Experience. The developer's previous relevant project
experience for projects of this type and size: A description of
three similar projects (date, location, land uses, size, architectural
features, role of development entity in the project, etc.). Include
photographs of recently completed projects with information on
location and date of the project.
4. Public/Private Partnerships. Include the names and phone
numbers of municipal references, if the developer has completed
a project with the assistance of another public entity. Include
information regarding experience in development and operation of
joint public/private partnerships, and time schedules from the
three most recent projects. Provide business references,
including Redevelopment Agency and/or City references, if
applicable, and two financial references. For each reference list
the name of a specific contact person, address, telephone
number, and nature of relationship.
5. Developer's Financial Capability
A. Include a statement of the developer's financial
qualification. Proposers should describe their ability to
raise equity/debt dollars including current relationships with
major lenders, and names and addresses of bank
references. Provide information regarding financing and
equity arrangements for the three projects listed as
developer's relevant experience-
B. DEVELOPMENT PROFORMA
1. Include a detailed proforma outlining the proposed hard, soft, and
financing costs associated with the proposed development.
2. Identify all sources of financing, including developer equity,
construction and permanent financing, as well as any proposed
Agency assistance.
3. Identify all other forms of proposed Agency and other
governmental assistance.
4. Idenitify all anticipated non -financial assistance such as street,
utility, parking or other improvements are to be constructed at the
Agency's expense.
5. Identify, if possible, the maximum feasible home price that a buyer
would/could pay in the Desert Highland Gateway neighborhood in
today's housing market.
C. SITE PLAN
1. Include a basic typical site plan showing the footprint and layout of
all proposed building on the properties, parking areas, and the
location of any proposed amenities (such as pools, courtyards,
social gathering areas, etc.) All site plans shall be clearly
dimensioned.
2. The site plan can be typical and does not need to be specific to
the identified lot for the purposes of the RFP.
D. FLOOR PLAN AND ARCHITECTURAL DRAWINGS
1. Include a dimensioned floor plan for each proposed home model
indicating total square feet and number of bedrooms.
2. Include an architectural elevation for each home model (if
available). If the developer does not have an architectural
elevation but has completed a similar model, a photograph of the
similar house may be substituted.
E. GREEN BUILDING STANDARDS
Energy Savings Goal (25% reduction over Title-24 energy
standards). This could be accomplished through:
A. Clustered Units: this will allow shared common walls with
adjacent temperature constantly in the human comfort
zone (68-80).
B. Solar Control: this must be orientation specific (vary on all
four sides) and possibly seasonally adjustable.
C. Quality Daylight: all living spaces should have daylight and
be independent of electric light during daylight hours.
D. Natural Ventilation: all living spaces should have natural
cross ventilation for thermal comfort, night flush cooling
and odor control.
2. Green Systems (goal 50% utility savings) This could be
accomplished through:
A. 2-3 Kilowatt Photovoltaic System
B. Tank less Water Heater
C_ 14 SEER min. Air conditioning System
3. Water Conservation (goal 75% reduction in water use) This could be
accomplished through:
A. Drought and wind tolerant landscaping
B, Subterranean or drip irrigation systems
C. Smart irrigation controls
4. Indoor Air Quality (goal 80% reduction in VOC's/formaldehyde) This
could be accomplished through:
A. Low VOC paint, carpet and cabinetry
B. Formaldehyde free insulation and wood products
C. Transportation (goal multiple options for transportation)
D. Bus stop with wind protecting shelter
E. Bike shelters
5. Recycling Program: (goal 90% reduction in solid waste) This could
be accomplished through:
A. Convenient area for recycling glass, plastic, paper and
green waste.
B. Community compost area-
F. SUPPORTING TEXT
1. Include a concept summary of the proposed development.
2. Include a proposed construction schedule.
3. Identify any particular constraints or other barriers to developing
this project, how the Developer should respond to those barriers,
and what the City/Agency should be expected to do during the
project to address those.
V. EVALUATION CRITERIA
An in-house review committee will review all proposals received by the Agency and
proposals will be evaluated on the basis of the following criteria:
DEVELOPER QUALIFICATION
The developer must demonstrate sufficient experience and resources to obtain
private financing and implement their proposal in an expedient manner.
ARCHITECTURAL AND LANDSCAPE DESIGN
An attractive high quality development is desired for the subject properties. The
aesthetic character of the proposal and the developer's ability to create attractive
finished products, as demonstrated through examples of previous work similar to
this proposal, will be given careful consideration.
ECONOMIC FEASIBILITY
The likelihood of success is a very important consideration for each proposal.
The economic feasibility of the proposals should be primarily based on the
developer obtaining construction and permanent mortgage financing from private
sources, rather than relying solely upon Agency financial assistance, with the
exception of "gap financing".
PURCHASE PRICE
The proposed purchase price an important consideration.
Staff will notify all applicants of the selected proposal within ten (10) days after approval
of the Agency Board. The Agency retains the right to reject all proposals.
VI. SCHEDULE
Request for proposals distributed and available..-. ............... ..Monday, November 6, 2006
Deadline for receipt of proposals ........................... 4:00 P.M., Friday, December 15, 2006
Interviews.............................................................................................To be scheduled
Contract award (tentatively) .............................................. Wednesday, January 17, 2006
The requirements of this section are mandatory and failure to comply will deem the
proposal as non -responsive- The following criteria shall be observed:
❑ The proposal should not exceed 20 pages, single sided (8%' by 11 ") including all
site and building plans, staff resumes and references, and cover letter.
❑ Four (4) original proposals are required. Facsimile (fax) proposals will not be
accepted.
❑ The proposal shall include the name of the Developer submitting the proposal,
mailing address, telephone number, and the name of the individual to contact for
further information.
❑ The prospective Developer shall designate by name the project manager to be
employed. Substitution of the project manager by the selected Developer will not
be allowed without prior approval by the City of Palm Springs.
❑ All proposals must be received in the City of Palm Springs, Department of
Community and Economic Development, by 4:00 P.M., Friday, December 15,
2006, Proof of receipt before the deadline is a City of Palm Springs, Department
of Community and Economic Development date stamp. Proposals must be
submitted to:
John S. Raymond
Director of Community & Economic Development
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
❑ Specific questions regarding this Request for Proposals should be directed to:
Dale E. Cook, Jr.
Community Development Administrator
(760) 323-8198
Dale. Cook@palmsprings-ca.gov
❑ Each proposal must include:
"Development Proposal", shall include the following items:
♦ Technical proposal — describe your project, including plans and specifications,
renderings, project schedule, and costs;
♦ Resumes and related experience; include relevant experience date, name of
agency, and reference name/contact information;
♦ The maximum feasible price that can be paid for each lot and still meet the test of
affordability;
♦ A proposal on Agency financial assistance to the buyers to meet a standard
Return on Investment for the Developer and the maximum allowable mortgage
under the income guidelines.
VII. RESPONSIBILITY OF PROPOSER
All Developers shall be responsible. If it is found that a Developer is found irresponsible
(e.g. has not paid taxes, is not a legal entity, does not have a business license,
submitted a proposal without an authorized signature, falsified any information in the
proposal package, etc.), the proposal shall be rejected.
VIII. DEVELOPER SELECTION
❑ Each proposal will be reviewed by an evaluation group to determine if it meets the
proposal requirements. Failure to meet the requirements for the Request for
Proposals may be cause for rejection of the proposal.
❑ The evaluation group may ask for formal oral presentations by the selected
Developers. The City reserves the right to waive the requirement for formal
presentations, and to make final sections determined upon review of the work
proposals only.
❑ A final selection of the Developers will be determined following review of all work
proposals and/or formal oral presentations.
❑ The selected Developers will work closely with City staff throughout the duration of
the contract. A development firm will be selected for final negotiation of a Contract
based upon the following factors:
♦ Project Understanding: Degree of understanding of infill housing development,
municipal government and development activities — (25%).
♦ Scope of Work: Quality of proposed project, including the floor plans,
architecture, landscaping, and amenity package — (25%).
♦ Firm Qualifications/Consultant References: Past experience in municipal
government -sponsored projects and other infill projects in distressed
neighborhoods (25%).
Project Managers/Staff Qualifications: Qualifications of the staff assigned to
manage and provide plan -check services — (25%).
IX. INSURANCE REQUIREMENTS
The Disposition and Development Agreement between the Community Redevelopment
Agency of the City of Palm Springs and the Developer will contain provisions and
insurance requirements as follows:
5.1 Insurance. The Contractor shall procure and maintain, at its sole cost and expense,
in a form and content satisfactory to City, during the entire term of this Agreement including any
extension thereof, the following policies of insurance:
(a) Comprehensive General Liabilitv Insurance. A policy of comprehensive general liability
insurance written on a per occurrence basis. The policy of insurance shall be in an amount not
less than either (i) a combined single limit of $1,000,000 for bodily injury, death and property
damage or (ii) bodily injury limits of $500,000 per person, $1,000,000 per occurrence and
$1,000,000 products and completed operations and property damage limits of $500,000 per
occurrence. If the Contract Sum is greater than $100,000, the policy of insurance shall be in an
amount not less than $5,000,000 combined single limit.
(b) Worker's Compensation Insurance. A policy of worker's compensation insurance in such
amount as will fully comply with the laws of the State of California and which shall indemnify,
insure and provide legal defense for both the Contractor and the City against any loss, claim or
damage arising from any injuries or occupational diseases occurring to any worker employed by
or any persons retained by the Contractor in the course of carrying out the work or services
contemplated in this Agreement.
(c) Automotive Insurance. A policy of comprehensive automobile liability insurance written on a
per occurrence basis in an amount not less than either (i) bodily injury liability limits of $500,000
per person and $1,000,000 per occurrence and property damage liability limits of $250,000 per
occurrence and $500,000 in the aggregate or (ii) combined single limit liability of $1,000,000.
Said policy shall include coverage for owned, non -owned, leased and hired cars.
(d) Professional Errors and Omissions Insurance. A policy of Professional Errors and Omissions
Insurance in an amount not less than Five Hundred Thousand Dollars ($500,000.00) per claim
and in the aggregate with respect to loss arising from the actions of the Contractor performing
professional services hereunder on behalf of the City.
All of the above policies of insurance shall be primary insurance and shall name the City, its
officers, employees and agents as additional insureds, except that the City shall not be named as
an additional insured for the Worker's Compensation Insurance nor the Professional Errors and
Omissions Insurance. The insurer shall waive all rights of subrogation and contribution it may
have against the City, its officers, employees and agents and their respective insurers. All of said
policies of insurance shall provide that said insurance may not be amended or canceled without
providing thirty (30) days prior written notice by registered mail to the City. In the event any of
said policies of insurance are canceled, the Contractor shall, prior to the cancellation date, submit
new evidence of insurance in conformance with this Section 5.1 to the Contract Officer. No work
or services under this Agreement shall commence until the Contractor has provided the City with
Certificates of Insurance or appropriate insurance binders evidencing the above insurance
coverages and said Certificates of Insurance or binders are approved by the City.
All certificates shall name the City as additional insured (providing the appropriate endorsement),
be signed by an authorized agent of the insurer, and shall contain the following "cancellation"
notice:
"CANCELLATION: Should any of the above described policies be cancelled before the expiration
date thereof, the issuing company shall maid an advance 30-day written notice to the Certificate
holder named herein."
The Contractor agrees that the provisions of this Section 5.1 shall not be construed as limiting in
any way the extent to which the Contractor may be held responsible for the payment of damages
to any persons or property resulting from the Contractor's activities or the activities of any person
or persons for which the Contractor is otherwise responsible.
In the event the Contractor subcontracts any portion of the work in compliance with Section 4.3 of
this Agreement, the contract between the Contractor and such subcontractor shall require the
subcontractor to maintain the same policies of insurance that the Contractor is required to
maintain pursuant to this Section 5.1.
5.2 Indemnification. Contractor agrees to indemnify the City, its officers, agents and
employees against, and will hold and save them and each of them harmless from, any and all
actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations,
errors, omissions or liabilities, (herein "claims or liabilities") that may be asserted or claimed by
any person, firm or entity arising out of or in connection with the negligent performance of the
work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees,
provided for herein, or arising from the negligent acts or omissions of Contractor hereunder, or
arising from Contractor's negligent performance of or failure to perform any term, provision,
covenant or condition of this Agreement, whether or not there is concurrent passive or active
negligence on the part of the City, its officers, agents or employees but excluding such claims or
liabilities arising from the sole negligence or willful misconduct of the City, its officers, agents or
employees, who are directly responsible to the City, and in connection therewith:
(a) Contractor will defend any action or actions filed in connection with any of said claims or
liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in
connection therewith;
(b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or
employees for any such claims or liabilities arising out of or in connection with the negligent
performance of or failure to perform such work, operations or activities of Contractor hereunder;
and Contractor agrees to save and hold the City, its officers, agents, and employees harmless
therefrom;
(c) In the event the City, its officers, agents or employees is made a party to any action or
proceeding filed or prosecuted against Contractor for such damages or other claims arising out of
or in connection with the negligent performance of or failure to perform the work, operation or
activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or
employees, any and all costs and expenses incurred by the City, its officers, agents or employees
in such action or proceeding, including but not limited to, legal costs and attorneys' fees.
5.3 Sufficiencv of Insurer or Suretv. Insurance or bonds required by this Agreement shall
be satisfactory only if issued by companies qualified to do business in California, rated "A" or
better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal
Register, and only if they are of a financial category Class VI or better, unless such requirements
are waived by the City Manager or designee of the City ("City Manager") due to unique
circumstances. In the event the City Manager determines that the work or services to be
performed under this Agreement creates an increased or decreased risk of loss to the City, the
Contractor agrees that the minimum limits of the insurance policies and the performance bond
required by this Section 5 may be changed accordingly upon receipt of written notice from the
City Manager or designee; provided that the Contractor shall have the right to appeal a
determination of increased coverage by the City Manager to the City Council of City within ten
(10) days of receipt of notice from the City Manager.
R-2 Zoning Standards
92.03.01 Uses permitted.
A. Uses Permitted.
Building, structures and land shall be used and buildings and structures shall hereafter
be erected, altered or enlarged only for the following uses. All uses shall be subject to
the standards in Section 92.03.03.
1. Permanent single-family dwelling subject to the standards of the R-1-A zone (Section
92.01.00);
2. Multiple -family dwellings;
3- Hotels (provided that no more than ten (10) percent of the guest rooms contain
kitchen facilities);
4. Accessory buildings and uses customarily incidental to the permitted uses and located
on the same lot therewith;
5. Video/amusement machines as an accessory use subject to the provisions of Section
93,16.00;
6. Home occupations subject to the provisions of Chapter 5.22 of the Palm Springs
Municipal Code,
B. Similar Uses Permitted by Commission Determination.
The commission may, by resolution of record, permit any other uses which it may
determine to be similar to those listed above and not more obnoxious or detrimental to
the public health, safety and welfare or to other uses permitted in the zone, as provided
in Section 94.01.00. All uses shall be subject to the standards in Section 92.03.03.
C. Uses Permitted by Conditional Use Permit.
The following uses may be permitted subject to approval of a conditional use permit, as
provided in Section 94.02.00.
1. Accessory apartments subject to the provisions of Section 93.18.00;
2. Assisted living facilities and convalescent homes, subject to the provisions of Section
94.02.00(H)(7);
3. Child care centers;
4. Churches;
5. Country clubs, golf courses, tennis and swimming clubs;
6. Hospitals;
7. Hotels in which more than ten (10) percent of the guest rooms contain kitchen
facilities;
8. Private education institutions;
9, Professional offices, provided:
a. The subject site must be located fronting on a major thoroughfare as indicated on the
city"s general plan,
b. The only allowable sign shall be an identification sign for the building complex, with
public convenience signs as necessary,
c. All development standards of Section 92,08.03 can be met;
10. Public parking areas, not as an accessory to uses permitted in this zone, pursuant to
Section 93.06.00, and as follows:
a. The property proposed for off-street parking use shall abut a commercial zone or on
an alley which is the boundary with such zone, and extends not more than one hundred
fifty (150) feet from the boundary;
11. Public parks and recreation areas at locations indicated on the general plan;
12. Public schools at locations indicated on the general plan;
13. Restaurant, in conjunction with hotel, provided the site shall have a minimum area of
one hundred twenty thousand (120,000) square feet; or provided, the hotel contains a
minimum of thirty (30) guest rooms;
14. Spas as an accessory use to a hotel subject to the following standards:
a. For hotels with under fifty (50) rooms, the facility is to serve hotel guests only.
Facilities located in hotels with more than fifty (50) rooms and located on a major
thoroughfare may be permitted to serve clients who are not hotel guests.
b. The hotel has a minimum of fifteen (15) guest rooms.
c. Staff shall be licensed and trained in the particular programs provided in accordance
with Chapter 5.34 of the Municipal Code.
d_ Such facility shall comply with Chapter 5,34 of the Municipal Code.
15. Time-share projects subject to the provisions of Section 93.15.00; provided the
subject site must be located fronting on a major or secondary thoroughfare as indicated
on the city"s general plan;
16. Video/amusement arcades as a secondary use in conjunction with a resort hotel
subject to the provisions of Section 93.16.00.
(Ord. 1590 §§ 5, 2000: Ord. 1553 (part), 1998; Ord. 1551 (part), 1998; Ord. 1418 (part),
1992; Ord. 1347 (part), 1990; Ord. 1300 (part), 1988; Ord. 1294 (part), 1988)
92.03.03 Property development standards.
The following property development standards shall apply to all land and buildings in the
R-2 zone, except that any lot created in compliance with applicable laws and ordinances
in effect at the time of its creation may be used as a building site.
A. Lot Area.
Each lot shall have a minimum lot area of twenty thousand (20,000) square feet-
B. Lot Dimensions.
All lots hereafter created shall comply with the following minimum standards and lots
now held under separate ownership or of record shall not be reduced below these
standards.
1. Width.
a. Interior lots shall have a minimum width of one hundred thirty (130) feet.
b. Corner lots siding on a local/collector street shall have a minimum width of one
hundred forty (140) feet.
c. Reversed corner lots siding on a local/collector street shall have a minimum width of
one hundred forty-five (145) feet.
d. Corner or reversed corner lots siding on a state highway or major thoroughfare shall
have a minimum width of one hundred seventy (170) feet; corner or reversed corner lots
siding on a secondary thoroughfare shall have a minimum width of one hundred sixty
(160) feet. When siding on a service road, it shall be not less than one hundred and
thirty (130) feet.
e. Cul-de-sac or curve lots shall have an average width of one hundred thirty (130) feet.
2. Depth.
a. Lots facing on a local/collector street shall have a minimum depth of one hundred fifty
(150) feet.
b. Lots facing on a major thoroughfare shall have a minimum depth of one hundred
seventy-five (175) feet; facing on a secondary thoroughfare shall have a minimum depth
of one hundred sixty-five (165) feet. When facing on a service road, it shall be not less
than one hundred thirty (130) feet.
c. Lots backing on a state highway or major thoroughfare shall have a minimum depth of
one hundred ninety (190) feet; lots backing on a secondary thoroughfare shall have a
minimum depth of one hundred eighty (180) feet.
C. Density.
There shall be a minimum of three thousand (3,000) square feet of lot area for each
dwelling unit. In determining the number of units allowed, any footage over three
thousand (3,000) square feet shall qualify the property for an additional unit. (Maximum
allowable; provided all other ordinance requirements relating to such standards as
parking, open space, setbacks, etc., are met.)
D. Building Height.
Buildings and structures erected in this zone shall have a height not greater than twenty-
four (24) feet and shall not exceed more than two (2) stories. (See Yards (subsection E
of this section) when R-2 property abuts R-1 property).
E. Yards.
The provisions of the R-3 Zone, Section 92.04.03(E) shall apply, except as otherwise
provided. For properties which front on Tahquitz Canyon Way, see Special setbacks,
Section 93.01.02.
1. All buildings that exceed fifteen (15) feet in height shall be required to have a twenty-
five (25) foot setback from the property line of any existing adjacent single story
development:
2. When R-2 zoned property abuts R-1 zoned property, all structures within one hundred
fifty (150) feet of the R-1 zone boundary line shall have a height of not greater than
fifteen (15) feet and shall not exceed more than one (1) story. This setback line may vary
by fifty (50) feet if the average setback is one hundred fifty (150) feet and the planning
commission determines that no detrimental effects will result.
F. Distance Between Buildings.
The provisions of the R-3 zone, Section 92.04.03(F) shall apply.
G. Walls, Fences, Landscaping.
1. Where an R-2 development abuts an R-1 zone, a masonry wall six (6) feet in height
and screen landscaping shall be erected and maintained between such uses and the R-
1 zone-
H. Access.
The provisions of Section 93.05,00 shall apply.
I. Off-street Parking.
The provisions of Section 93.06.00 shall apply-
J. Off-street Loading and Trash Areas.
The provisions of Section 93.07.00 shall apply.
K. Signs.
The provisions of Section 93.20.00 shall apply,
L. Coverage.
For R-2 developments that include any structures that exceed eighteen (18) feet in
height and one (1) story, lot area coverage for buildings or structures shall not exceed
thirty (30) percent of the total lot area.
M. Antennas.
The provisions of Section 93.08.00 shall apply.
N. Public Art.
The provisions of Section 93.11.00 shall apply.
(Ord. 1553 (part), 1998; Ord. 1294 (part), 1988)
92.03.04 Performance standards.
The minimum of fifty (50) percent of a site shalt/ be developed as usable landscaped
open space and outdoor living and recreation areas, with an adequate irrigation system.
(Ord. 1294 (part), 1988)
92.03.05 Property maintenance standards.
All properties shall be subject to property maintenance standards established in Section
93.19.00. (Ord. 1294 (part), 1988)