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Cg41FORO City Council Staff Report
Date: March 15, 2017 CONSENT AGENDA
Subject: APPROVAL OF AN ENCROACHMENT LICENSE FOR INSTALLATION
AND MAINTENANCE OF A GREASE INTERCEPTOR LOCATED AT
1551 N. PALM CANYON DR., ENGINEERING FILE NO. EL 16-03
From: David H. Ready, City Manager
Initiated by: Engineering Services Department
SUMMARY
Approval of this item will authorize the issuance of an Encroachment License to Palm
Grove Group, LLC, a California limited liability company, for the installation and
maintenance of a grease interceptor and sample box to serve the Arrive Hotel's
bar/kitchen located at 1551 N. Palm Canyon Drive and installed within City right-of-way.
Whereas the construction of the improvements within City right-of-way have been
approved through the administrative encroachment permit process, approval of an
Encroachment License by the City Council implements permanent obligations, running
with the land, for maintenance of liability insurance and indemnification of the City by
the adjacent property owner.
Palm Grove Group, LLC, is managed by Artist and Recreation, LLC, a California limited
liability company. The principal officers and managers of Artist and Recreation, LLC,
are: Matthew Steinberg, Ezra Callahan, and David Isen.
RECOMMENDATION:
1) Approve Agreement No. , an Encroachment License for the Arrive Hotel and
the Palm Grove Group, LLC, a California limited liability company, for the
installation and maintenance of a grease interceptor and sample box located
within City right-of-way located at 1551 N. Palm Canyon Drive; and
2) Authorize the City Manager to execute all necessary documents
STAFF ANALYSIS:
Chapter 14.16 of the Palm Springs Municipal Code requires an encroachment permit to
be issued for any improvements constructed in the public right-of-way. Additionally,
ITEM NO..-.;-' ' H '
City Council Staff Report
March 15, 2017- Page 2
Approval of Encroachment License 16-03
whenever other improvements of a type of use determined by the Director of
Engineering Services to require additional liability protection for the City, a formal
agreement through an Encroachment License is required.
On October 10, 2012, the Planning Commission reviewed and unanimously approved a
Planned Development District (Case 5.1284 — PDD 360) to develop 32-room hotel with
an 80 seat restaurant on an approximately 1.27 acre site located at 1551 N. Palm
Canyon Drive, also known as the Arrive Hotel. On November 7, 2012, the City Council
reviewed and unanimously adopted Resolution 23252 approving development of the
Arrive Hotel. Deliveries, loading, and unloading is accommodated within a new valet
drop off lane located along North Palm Canyon Drive at the front of the Arrive Hotel. A
vicinity map is provided as Attachment 1.
The Arrive Hotel valet drop-off area was required to be constructed with decorative
pavement, and is located within the City right-of-way. Approvals were granted to allow
the Arrive Hotel to install a new grease interceptor and sample box within its new valet
drop-off area, on the condition that the Arrive Hotel provide perpetual maintenance of
the decorative pavement within the valet drop-off area, as well as full liability for
operation and maintenance of the grease interceptor and sample box. Exhibits showing
the location of the encroachments are shown below.
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City Council Staff Report
March 15, 2017 - Page 3
Approval of Encroachment License 16-03
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Approval of the Encroachment License ensures the property owners, and their
successors, remain obligated to operate and maintain the improvements constructed
within City right-of-way, including maintenance of liability insurance and indemnification
of the City by the adjacent property owner. A copy of the Encroachment License is
included as Attachment 2.
03
City Council Staff Report
March 15, 2017- Page 4
Approval of Encroachment License 16-03
ENVIRONMENTAL IMPACT:
The requested City Council action is not a "Project' as defined by the California
Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project' means the
whole of an action, which has a potential for resulting in either a direct physical change
in the environment, or a reasonably foreseeable indirect physical change in the
environment. The requested action is to approve an Encroachment License, and is
exempt from CEQA pursuant to Section 15378(b), in that a "Project' does not include:
(5) Organizational or administrative activities of governments that will not result in direct
or indirect physical changes in the environment.
FISCAL IMPACT:
Approval of the Encroachment License ensures the property owners remain obligated
for perpetual maintenance of the improvements, and for maintaining liability insurance
and indemnity protection for the City. In this way, the City is protected against any
claims or future damages for operation and maintenance of these improvements by the
property owner, or their successors in interest.
SUBMITTED
r
Marcus L. Fuller, MPA, P.E., P.L.S. David H. Ready, Es
Assistant City Manager/City Engineer City Manager
Attachment:
1. Vicinity Map
2. Encroachment License
04
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CITY OF PALM SPRINGS
CASE NO: 5.1284 PDD 360 DESCRIPTION: An application for a Planned
Development District (PDD) proposing a hotel, a
APPLICANT: Palm Grove Group, restaurant, other retail, and parking on
LLC approximately 1.27 acres at 1551 North Palm
Canyon Drive, Zone C-1/R-3 Resort Combining
Zone. APN 505-165-002, -003, -007, -009, -011
and -012.
06
Attachment 2
07
PLEASE COMPLETE THIS INFORMATION
RECORDING REQUESTED BY:
City of Palm Springs
AND WHEN RECORDED MAIL TO: R A Exam:
1st
City of Palm Springs Page DA PCOR Misc Long RFD P gdtl P cert cc
Attn: City Clerk
Box 2743
Palm Springs, CA 92263 SIZE NCOR SMF NCHG T:
(FOR RECORDERS USE ONLY1
Filing Fee Exempt Per Government Code 6103
EL 16-03
APN: 505-165-014
ENCROACHMENT LICENSE
THIS ENCROACHMENT AGREEMENT ("Agreement') is entered into this day of
2017, by and Palm Grove Group LLC, a California Limited Liability
Corporation("Applicant'),whose mailing address is P.O. Box 93217, Pasadena, CA 91109-
3217 and the CITY OF PALM SPRINGS, a California charter city and Municipal Corporation
("City"), whose address is P.O. Box 2743, 3200 E. Tahquitz Canyon Way, Palm Springs, CA
92263.
RECITALS:
A. Applicant is the owner of that certain real property located in the City of Palm Springs,
County of Riverside, State of California commonly known as The Arrive Hotel, 1551 North
Palm Canyon Drive, Palm Springs, CA 92262-4409 (APN 505-165-014) more particularly
described on Exhibit "A" attached hereto and incorporated herein by reference ("Applicant
Property"). City is the owner of certain fee and/or easement interests in that certain real
property located in the City of Palm Springs, County of Riverside, State of California adjacent
to the Applicant Property and encroachment as more particularly described in Exhibit "B"
hereto ("City Property").
B. Applicant desires to construct and maintain a grease interceptor box with attached
sample box and appertances placed in a portion of the public right-of-way hereto on the City
property which encroachment is more particularly show on Exhibit "C-1" and "C-2"
("Encroachment'). City has agreed to grant to Applicant an encroachment permit ("Permit')
for the Encroachment in accordance with Chapter 14.16 of the City of Palm Springs Municipal
Code on the condition that Applicant executes this Agreement.
NOW THEREFORE, the parties hereto agree as follows:
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1.0 License. The City hereby grants to Applicant a license revocable or relocatable with or
without cause at any time by the City to construct and/or maintain the Encroachment upon all
of the terms and conditions of the Permit and this Agreement ("License").
2.0 Covenants.
2.1 In General. Applicant hereby agrees to construct, maintain, relocate and
remove the Encroachment in accordance with Chapter 14.16 of the City of Palm Springs
Municipal Code, as amended from time to time.
2.2 Maintenance. Applicant shall maintain, repair and replace the Encroachment
and the City Property so as to keep the Encroachment and such area in a neat, clean, first
class condition and in good order and repair, free of weeds, trash and debris at all times. All
tables, chairs, or other items shall be kept in a clean, safe condition, and shall not be placed in
a manner that impedes or prevents pedestrian traffic. In the event Applicant does not maintain
the Encroachment and the City Property as required herein, the City may terminate the
License as more particularly provided in Section 3.0.
2.3 Indemnity. Applicant hereby agrees to indemnify and defend the City, its
officers, agents and employees against and to hold and save each of them harmless from, any
and all actions, suits, claims, damages to persons or property, losses, costs, penalties,
obligations, errors, omissions or liabilities (collectively "claims or liabilities") that may be
asserted or claimed by any person, firm or entity arising out of or in connection with the
location, construction, maintenance, relocation or removal of the Encroachment, 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 City, and in connection
therewith:
(a)Applicant 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) Applicant will promptly pay any judgment rendered against the City, its officers,
agents or employees for any such claims or liabilities and Applicant 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 Applicant for such damages or other claims
arising out of the location, construction, maintenance, relocation or removal of the
Encroachment,Applicant agrees to pay 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.
2.4 Covenants Running With the Land. The covenants and restrictions by
Applicant set forth in this Agreement: (a) are made for the direct benefit of the City Property;
(b) will constitute covenants running with the land and equitable servitudes; (c) will bind
Applicant and every person having any fee, leasehold or other interest in any portion of the
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Applicant Property at any time or from time to time; and (d)will inure to the benefit of the City
and every person having any fee, leasehold or other interest in the City Property at any time or
from time to time.
3.0 Insurance.
3.1 Insurance Requirement. During the entire term of this License, Licensee shall
procure and maintain public liability and property damage insurance,at its sole expense, in an
amount not less than ONE MILLION DOLLARS ($1,000,000)combined single limit, insuring
against all liability of Licensee and its authorized representatives arising out of and in
connection with the Encroachment or Licensee's use of the Encroachment. Such public
liability and property damage insurance shall also providefor and protect the Licensoragainst
incurring any legal cost in defending claims for alleged loss.
3.2 Primary Policy; Additional Insured. All such insurance as required by this
Section 6 shall be primary insurance and shall name the City as additional insured.
3.3 Insurance Increase. Not more frequently than one (1) time every three (3)
years, if, in the opinion of the City Manager or the City's insurance broker, the amount of
public liability and property damage insurance coverage at that time is not adequate, the City
Manager may require modifications to this coverage.
3.4 Insurance Company. All insurance required under this Section 8 shall be
issued by an insurance company authorized to do business in the State California, with a
financial rating of at least A-3A status as rated in the most recent edition of Best's Insurance
Reports or such comparable report should Best's Insurance Reports no longer be available.
3.5 Modification or Cancellation of Policy. All insurance required pursuant to this
Section 8 shall contain an endorsement requiring thirty (30) days written notice from the
insurance company to both parties before cancellation or change in the coverage, scope, or
amount of any policy. Each policy, or a certificate of the policy, together with evidence of the
payment of premiums, shall be deposited by Licensee with the City at the commencement of
the term, and on a renewal policy not less than twenty(20)days before expiration of the term
of the policy.
4.0 Termination. The License is terminable with or without cause by the City Manager or
his designee at any time. Applicant shall remove the Encroachment and restore the City
Property to its former condition, at Applicant's sole cost and expense,within thirty(30)days of
written notice from the City Manager. In the event Applicant fails to remove the Encroachment
and restore the City Property within said time period, the City shall have the right to do so
without notice. Applicant shall immediately reimburse the City for all expenses required to
remove the Encroachment and restore the Property. Said amounts shall accrue interest from
the date expended by the City at the maximum non-usurious interest rate permitted by law.
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5.0 Miscellaneous.
5.1 Notices. Any notice, demand, request, document, consent, approval, or
communication either party desires or is required to give to the other party or any other person
shall be in writing and either served personally or sent prepaid, first-class mail to the
addresses listed on the first page of this Agreement. Either party may change its address by
notifying the other party of the change of address in writing. Notice shall be deemed
communicated at the time personally delivered or in seventy two (72) hours from the time of
mailing if mailed pursuant to this Section 4.1.
5.2 Attorneys Fees. In any action between the parties hereto seeking enforcement
of this Agreement, or in connection with the License or the Permit, the prevailing party in such
action shall be entitled to have and to recover from the other party its reasonable attorneys'
fees and other reasonable expenses in connection with such action or proceeding in addition
to its recoverable court costs.
5.3 Amendment or Modification. This Agreement may not be modified or
amended except by written agreement executed by the then-owner of the Applicant Property
and the City Property and recorded in the Office of the County Recorder, County of Riverside,
California.
5.4 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
5.5 Severability. The invalidity or unenforceability of any provision of this
Agreement with respect to a particular party or set of circumstances shall not in any way affect
the validity and enforceability of any other provision hereof or the same provision when
applied to another party or to a different set of circumstances.
5.6 Recordation. This License shall be recorded in the Office of the County
Recorder, Riverside County, California,and it shall serve as notice to all parties succeeding to
the interest of Licensee or the city that their use of the Licensee Property and the City
Property shall be benefited and/or restricted in the manner herein described.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set
forth above.
Palm Grove Group, LLC,a California Limited
Liability Company
By
Print Signature Name
Its
Title
"Applicant'
ATTEST: CITY OF PALM SPRINGS, A California
Charter City and Municipal Corporation
Kathie Hart, Interim City Clerk David H. Ready, City Manager
City of Palm Springs, CA City of Palm Springs, CA
APPROVED AS TO FORM: APPROVED BY CITY COUNCIL:
Date
Agreement No.
Douglas Holland, City Attorney
City of Palm Springs, CA
(NOTARY STATEMENTS ON FOLLOWING PAGE)
5
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document.
State of California )
County of )
On before me,
Date Here Insert Name and Title of the Officer
personally appeared
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s),
or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Signature
Signature of Notary Public
Place Notary Seat Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document: Document Date:
Number of Pages: Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name: Signer's Name:
❑ Corporate Officer — Title(s): ❑Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑General ❑ Partner — ❑ Limited ❑ General
❑ Individual ❑Attorney in Fact ❑ Individual ❑Attorney in Fact
❑Trustee ❑ Guardian or Conservator ❑Trustee ❑ Guardian or Conservator
❑ Other: ❑ Other:
Signer Is Representing: Signer Is Representing:
02014 National Notary Association • www.NationalNotary.org • 1 800-US NOTARY(1-800-876-6827) Item#5907
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EXHIBIT "A"
LEGAL DESCRIPTION OF APPLICANT PROPERTY
A portion of the Northeast quarter or the Northeast quarter of Section 10, Township 4
South, Range 4 East, San Bernardino Base and Meridian, more particularly described as
follows:
Parcel A of Parcel Merger 13-03(PM 13-03)for the City of Palm Springs, California, shown
in Document No. 2013-0398595, recorded August 15, 2013, Official Records Riverside
County Recorder.
Said Parcel A contains 1.27 Acres, more or less.
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EXHIBIT "B"
LEGAL DESCRIPTION OF CITY PROPERTY AND ENCROACHMENT
A portion North Palm Canyon Drive contained within the Northeast quarter of the Northeast
quarter of Section 10, Township 4 South, Range 4 East, San Bernardino Base and
Meridian, more particularly described as follows:
Commencing at the said Northeast Corner of Section 10; Thence South 89053'00" West
along the north line of said Section 10, a distance of 3535.13 feet to the centerline of North
Palm Canyon Drive shown as County Highway Route No. 18 by Map on File in Book 5,
Page 32, of Records of Survey, Official Records of Riverside County, California; Thence
South 143.00 feet; thence leaving said centerline, South 89053'00"West, 38.50 feet,to the
Northwest corner of that certain parcel Granted to the City of Palm Springs, California by
Deed Recorded April 27, 1961, in Book 2895, Page 445, Official Records of said Riverside
County, thence South 89050'00" West, 11.50 feet to the Northwest corner of a Granted to
the City of Palm Springs, California for public right-of-way recorded in Document No.2014-
0232625 on June 25, 2014, Riverside County Recorder Official Records, thence South
approximately 152 feet to a point on the Western right-of-way line for North Palm Canyon
Drive; thence East approximately 8 feet to the POINT OF BEGINNING;
THENCE continuing East, approximately 10 feet;
THENCE South, approximately 15 feet;
THENCE West, approximately 10 feet;
THENCE North, approximately 15 feet, to the POINT OF BEGNINNING.
Said encroachment area contains approximately 150 square feet, more or less, as shown
on Exhibit "C-1" attached hereto and by reference made a part hereof.
8
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AL
EXHIBIT "C- 1 "
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EXHIBIT "C-211
NORTH
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COVER W/GASKET(CAS
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INLET OUTLET TO BACKFLOW
INLET
VALVE
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STAND PIPE TEE& SAMPLE BOX
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NOTES.
1. MANHOLES REQUIRED AT INLET AND OUTLET
GREASE INTERCEPTOR DETAIL
SCALE: NONE T
CITY OF PALM SPRINGS ARRIVE HOTEL - ENCROACHMENT LICENSE
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