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HomeMy WebLinkAbout7/30/2008 - STAFF REPORTS - 5.D. O�pALM SA4 4+ V N • w �`Oe•o..no'� wc4�rFORN�P. Citv Council Staff Repo July 30, 2008 Subject: AUTHORIZE STAFF TO PREPARE AN AMENDMENT TO THE SUBDIVISION IMPROVEMENT AGREEMENT AND MAP CONDITIONS OF APPROVAL WITH IRP EL PORTAL ASSOCIATES, LLC, A DELAWARE LIMITED LIABILITY CORPORATION, FOR TRACT MAP NO. 30050 (ALTA), RELIEVING THE CITY, THE COMMUNITY REDEVELOPMENT AGENCY, AND THE DEVELOPER FROM THE OBLIGATION TO FUND AND CONSTRUCT CERTAIN FLOOD CONTROL IMPROVEMENTS ON SOUTH PALM CANYON DRIVE AND RELEASING NINE RESTRICTED LOTS IN THE TRACT FOR SALE AND DEVELOPMENT From: David H. Ready, City Manager Initiated by: Public Works and Engineering Department Community and Economic Development Department SUMMARY This action would authorize Staff to prepare an amendment to a Subdivision Improvement Agreement with IRP El Portal Associates, LLC, a Delaware Limited Liability Corporation, relieving the Developer from the responsibility to construct regional flood control Improvements along South Palm Canyon Drive for the Alta Project, located at the northeast corner of South Palm Canyon Drive and Acanto Road. (TM 30050, Case No. 5.0899, PD 271) In addition, the Amendment would relieve the Community Redevelopment Agency of the obligation to fund a major portion of that structure, in the amount of$2,033,750, The Agency had made a commitment, included in the Subdivision Improvement Agreement, from a Tax Allocation Bond Refinancing in June 2004. Several delays in the acquisition of property for the drainage basin and acquisition of easements onto the Indian Canyons Golf Resort, across allottee property, and obtaining the Riverside County Flood Control District and the Tribal Engineering Department's approval of the flood control structure design, caused the flood control project to be delayed by several years. The original estimated cost of the flood control improvements of $2,033,750 is now significantly out of date. The newest engineer's estimate of the work is at least $2.7 million plus the cost of water line relocation which potentially pushes the total project cost above $4.0 million, beyond the ability of any of the parties to fund at this ITEM NO. �J'' point. The Developer has raised the restricted lots out of the flood plain, making them eligible for development once a Letter of Map Revision (LOMR) is received from FEMA. RECOMMENDATION: 1) AUTHORIZE STAFF TO PREPARE AN AMENDMENT TO THE SUBDIVISION IMPROVEMENT AGREEMENT AND MAP CONDITIONS OF APPROVAL WITH IRP EL PORTAL ASSOCIATES, LLC, A DELAWARE LIMITED LIABILITY CORPORATION, FOR TRACT MAP NO. 30050 (ALTA), RELIEVING THE CITY, THE COMMUNITY REDEVELOPMENT AGENCY, AND THE DEVELOPER FROM THE OBLIGATION TO FUND AND CONSTRUCT FLOOD CONTROL IMPROVEMENTS ON SOUTH PALM CANYON DRIVE AND RELEASING NINE RESTRICTED LOTS IN THE TRACT FOR SALE AND DEVELOPMENT STAFF ANALYSIS: As a condition of approval on most development projects, developers are required to construct public improvements that benefit their projects, especially if those improvements are located adjacent to the project site. These costs typically include street and sidewalk improvements, median islands, parkway or greenbelt landscaping, traffic signals, and all flood control and drainage facilities (on site or off site). In Palm Springs, where there exists a Drainage Master Plan in most of the city, the cost of drainage and flood control improvements are rational and predictable, if not inexpensive. In the most expensive portion of the City, in the east-central portion (around Lowe's), a drainage fee of approximately $9,600 per acre is assessed against all development. Redevelopment Agency History Over the past fifteen years, several developers have made requests for Community Redevelopment Agency assistance on flood control improvement costs for residential projects in the South Palm Canyon area, particularly the Alta (formerly El Portal) and Monte Sereno projects, because many of the master plan improvements were "regional" in nature: that is, the majority of the benefit actually accrues to properties spread over a wide area and not one particular project. The relatively high cost and regional nature of the improvements is an argument for the public agency to participate in the improvements, rather than requiring their cost to be borne by a single project. The Canyon Redevelopment Project Area (now part of Merged Area #2) was formed in 1991 specifically to promote development of the area, given the significant infrastructure needs related to flood control and drainage. When the Canyon Redevelopment Project Area was created in 1991, the Agency committed to the developer of the Canyon Park Master Plan that it would fund the development of all flood and drainage infrastructure in the project area, up to a maximum of$300 million over the life of the project (40 years). The case for Agency assistance was simple: while these residential projects promised to generate significant tax increment for the Agency and would increase the supply of 000092 truly high-end housing in the city, they faced extraordinary costs due to flood control measures required by the Riverside County Flood Control District (RCFC) in order to address the regional offsite hydrology issues. The total anticipated cost of the flood control improvements alone is over$12 million, far more than can be absorbed by either a single developer or the home-buyers in the tract even in $1 million homes, if the project were to remain competitive with others in the Valley. In addition, the City required participation in the development of a bridge over South Palm Canyon Drive, as well as the construction of a fire station to serve the Canyon area. At the time that Tentative Tract Map 30050 was being considered by the City in 2003, the City was also coordinating preparation of a Master Plan of Drainage for the South Palm Canyon Area, as the area was not included in the City's Drainage Master Plan. Master Plan of Drainage Fee The South Palm Canyon Area south of Murray Canyon Drive is not included in the City's Drainage Master Plan described above; therefore, each development proposal is subject to review and approval by RCFC, with each developer bearing the cost of his own direct (on-site) and indirect (off-site) flood control mitigation. The estimate of the entire cost of the master plan flood control improvements in the Canyon is $12 million or more. In addition, there are several areas of infrastructure that need to be upgraded to accommodate current and future development in the Canyon, including the installation of an all-weather bridge on South Palm Canyon Drive and the construction of a new fire station in the Canyon. At least a portion of the flood control and infrastructure costs are "regional," which are often borne by either the public agencies (City/Redevelopment Agency) or shared with other benefiting property owners. Since 1991, several studies have been completed to determine the appropriate flood control mitigation measures in the Canyon area and to estimate the construction costs, as well as to develop a cost basis for the streets, bridges, and other required public improvements. These flood control studies are a basis for determining the pro rata cost of the flood control improvements for the parcels in the area; in addition, there are estimates available for the necessary streets and traffic improvements. In 2003, the Agency hired the engineering firm of Berryman & Henigar to conduct a fee study under the provisions of the California Government Code Section 66000 in order to determine the public and private benefit shares of the estimated Master Plan costs and determine an equitable share for developers seeking to develop in the Canyon area. Such a fee was adopted by ordinance based on the conclusions of that study in February 2006 and became effective in April, 2006. There are a number of factors that complicated the calculation of a fee: the topography of the area means that there is a high degree of disparity between the benefit of a flood control fee across the Canyon, with adjacent tracts being subjected to very different direct requirements for flood control improvements, depending on which is in the flood plain; second, a portion of the area is already developed and may have been developed under more lenient flood control guidelines, suggesting that existing development may derive benefit from the future improvements without paying for them, and that there was no prior mechanism for collecting an infrastructure impact fee; third, about half the developable Canyon area lies outside the City limits of the City of Palm Springs, making the assessment of those parcels difficult, even though some improvements need to be constructed outside the City; and, fourth, a significant portion of the Canyon is either Indian allottee land or directly owned by the Agua Caliente Band of Cahuilla Indians. While the City has the right to impose development fees on allottee land within the City limits, its ability to assess fees on Tribally owned parcels is circumscribed and the City and Tribe have not yet negotiated the specific terms of a voluntary fee program on Tribal or allottee land outside the City limits. Nevertheless, the Developer Fee was adopted in February 2006 and is in effect for the Canyon area for all new development. Infrastructure Costs The Drainage Master Plan as prepared and summarized by the engineering firm of Tettemer and Associates (now Stantec Consulting, Inc.), include: Original Estimated Watershed/drainage Facilities Construction Cost Dry Canyon Improvements 1 Arenas Lateral 30,000 2 Dry Canyon Debris Basin 37,500 3 Dry Canyon Channel 1,828,750 4 Acanto Drive Storm Drain 137,500 Palm Canyon Wash 5 Westerly Bank Rip Rap Protection 1,401,260 12 Westerly Bank Concrete Levee 2,500,000 Arenas Canyon 6 Arenas North Channel 1,055,000 7 Andreas North Desilting Basin 1,043,750 8 South Palm Canyon Drive Culvert Crossing 155,000 9 Arenas South Channel 2,000,000 10 South Palm Canyon Drive Bridge & Street 3,494,079 11 Improvements New! ire Station 2,500,000 Total Estimated Construction Cost $16,747,829 000H4 Specific to the Alta project is a regional flood control improvement that will accept storm water runoff from the mountains south of Acanto Drive and convey it through underground culverts and an open channel, ultimately outletting into the lake located on the Indian Canyons Golf Resort at the northeast corner of South Palm Canyon Drive and Bogert Trail. The construction would not only protect the new homes in Alta from flooding but also provide all weather access to the tract itself and other properties located on Acanto or south by mitigating the sheet flow of water that crosses (and closes) South Palm Canyon Drive in a major storm event. The developer of the Alta project has had plans prepared by Stantec for construction of the required flood control improvements. The plans prepared by Stantec and specifications prepared by City staff are ready for Agency Board approval and the subsequent advertisement for construction bids. The Engineer's Estimate for this project is $2,700,000. Agency Financing Proposal As a result of negotiations with Palm Canyon, LLC (the original Alta developer) commencing In October, 2001, the Agency committed to constructing the Dry Canyon Improvements, which were specifically set forth as obligations under Engineering Conditions 38, 38A, 38B and 38D to Tentative Tract Map 30050 approved by the City on June 19, 2002 (and listed as Items 1-4 in the table above with estimated cost from the Tettemer & Associates study). Conditions of Approval for Tract 30050 required the Developer to construct the drainage improvements described above_ The Subdivision Improvement Agreement between the Developer and the City of Palm Springs requires the Developer to design the facility, but anticipates the Agency's contribution toward the construction cost from 2004 Tax Allocation Bond refinancing proceeds. The Developer agreed to obtain or provide: (1) approval of the flood control structure design by RCFC; and (2) acquisition and approval by the BIA of spillway easements onto the golf course and from the underlying allottees. City staff was willing to assist the Developer but the primary responsibility for these two items stayed with the Developer. The Agency refinanced Tax Allocation Bonds in June 2004 and set aside $2,033,750 for Alta flood control improvements. In 2004 the Agency and Developer expected that amount to be adequate to cover the cost of construction. This project was anticipated to be bid and constructed by the City of Palm Springs on behalf of the Agency once the necessary easements were in place and a design was approved by RCFC. Under tax exempt financing regulations, the Agency should have expended the funds by June, 2007 in order to meet the arbitrage rules under tax exempt financing law. Because that deadline has been missed, the funds are now in a rate-restricted account. Restrictive Covenant The City has also recorded a covenant against the Developers project, restricting the development of nine lots located closest to Palm Canyon Drive, as security for the Developer to move forward with the flood control design. This covenant would be released upon the satisfactory completion of the required off-site improvements, including the flood control improvements. The rationale, in addition to the security, was . .00m695 that these lots were In the flood plain and would only have that flood plain designation removed once a LOMR was received upon FEMA's acceptance of the installed flood control protection. However, the Developer has raised the pads out of the flood plain and has requested the City Engineer support its Letter of Map Revision (LOMR) application without the construction of the flood control improvements in order to move forward with marketing them. As described above, if the project went forward without the construction of the flood control improvements the change in the pad height would protect the individual homes, but the overall access to the tract could be cut off, as well as access for anyone living along Acanto Road or south. Project Delays Since the beginning of the design process, the project has been challenging. Currently in the event of a major flood, water flows off the mountain and across Palm Canyon Drive and eventually makes its way to the golf course, which is the natural flood control retention area. The nature of the original improvements was that they were designed to take flood water from the Dry Falls area on the west side of Palm Canyon Drive, route the water into an inlet structure on that side of the street on property owned by the Tribe, into a pipe that would cross under South Palm Canyon Drive into a landscaped rip-rap channel flowing northbound along the east side of Palm Canyon Drive, into another box or pipe that would cross under Bogert Trail and empty the water into the lake on the Indian Canyons Golf Resort, near Bogert Trail and Palm Canyon. The benefits were the protection of homes and the ability to have all weather access along South Palm Canyon Drive. At first delays were design-related. In crossing South Palm Canyon Drive, RCFC required that the box be at least 6 feet high in order to allow for maintenance equipment to get in after a major flood event. Without a debris basin in Dry Falls, the risk was that the structure would carry debris into the box and back up. Without adequate height to get equipment in, RCFC felt they would be unable to maintain the structure, and their Operations staff rejected any plan that did not include 6' of height. Another problem was that a 6' high box would require a vertical realignment of South Palm Canyon Drive, meaning a major rise in the road. In addition, any design crossing South Palm Canyon Drive would require the relocation of a 30 inch Desert Water Agency line and a secondary 16 inch water line at a cost of nearly $1 million. Various design options that included smaller, wider boxes with access from the top never received final approval from RCFC. At the outlet end of the structure, the Developer was required to obtain easements to carry the water onto the golf course. They obtained through the threat of condemnation a privately-owned parcel for storm water detention (the Stich Parcel) and a leasehold easement from the Agua Caliente Development Authority, the owners of the golf course and the lessee of the land. However, negotiations with the six allottees which own the underlying fee interest on the golf course and adjacent parcels were more difficult and took much longer. The easement over the fee interest, rather than merely the leasehold interest, is necessary in order to effect an easement in perpetuity or "without limitation." 0000-26 At this point staff understands that an easement has been negotiated between the Developer and allottees but not finalized through the BIA. Without the easements the structure cannot reach the outlet on the golf course. Concurrently with the negotiation for the allottee easements, the Developer needed to obtain an easement for the inlet structure from the Tribe for access onto the Toro Ranch property on the west side of Palm Canyon Drive. However, Tribal engineering staff directed the Developer to redesign the project to provide more flood control protection on Tribally-owned property on the west side of Palm Canyon Drive. This redesign changed the location of the entire flood control channel: rather than crossing under South Palm Canyon Drive near Acanto, the flows would be conveyed north along the west side of South Palm Canyon Drive in a wider open channel on Tribally-owned property with an ultimate culvert crossing at Bogert Trail to the outlet at Indian Canyons Golf Resort. Under this redesign, the City/Agency would have constructed the channel using the bond funds but then dedicated it to the Tribe, which would have needed to provide the City with the same standard indemnification as we would have received from RCFC. After more than a year of Stantec working on a modified design, Tribal staff decided that it was not in the Tribe's best interest to have the structure on the west side of Palm Canyon Drive and agreed to allow the original design to move forward. The amount spent by the Developer on design is over $750,000 to date, and the Developer had received informal estimates of the actual construction cost of the structure, including the water line relocation, to be in the $3.5 to $4 million range. The Engineer's estimate of the flood control project alone is $2.7 million. The Developer has indicated that they are not prepared to absorb these additional costs considering the relative benefit of the project to the development and the current state of the home building industry. In 2007, the City Engineer directed the Developer to: • Provide the City with copies of the bids received for the Flood Control Improvements from the contractors that have informally bid the project. • Complete the construction plans for the flood control improvements, prepared by Stantec, including processing them for approval from RCFC. • Complete the construction plans and details for the required relocation of Desert Water Agency (DWA) facilities at South Palm Canyon Drive and Bogert Trail necessary for installation of the flood control improvements. • Complete the acquisition of storm drain easements in favor of the City of Palm Springs from the Tribe and individual Tribal allottees. • Complete the other required offsite improvements including undergrounding of utilities, street improvements, landscaping, etc. regardless of whether or not the flood control improvements are constructed as these are an obligation under the Subdivision Agreement. Both the Developer and Consulting Engineer have produced letters that provide additional detail about the design and approval process. 000097 Recommendation It had been the City/Agency's intention to proceed with formal construction bidding of the flood control improvements as a publicly bid City Project, including requisite utility relocation of DWA facilities, such that the City would receive a valid construction cost for the project and definitively determine the significance of the cost overrun above the Agency's maximum contribution. However, given the Engineer's estimate of $2.7 million for the flood control structure itself, the informal construction bids in the range of $3.5 to $4.0 million for the combined project, and the inability of the developer to contribute additional funds in a fragile housing market, it is apparent that to proceed with this project, the Developer, City and/or Agency would have to expend additional funds along with the original $2,033,750, which may be better invested in other initiatives, such as improvements in Section 14. Staffs recommendation is to proceed with the Amendment to the Subdivision Improvement Agreement to relieve the Agency and Developer with the responsibility for constructing this regional improvement in favor of the project-based solution of paying the establish drainage fee of $137,000 and raising the pad elevations. The Developer is still required to complete the other required offsite improvements obligated under the Subdivision Improvement Agreement, including the undergrounding of utilities, street improvements, and landscaping, whether or not the flood control improvements are constructed. The second recommendation would be to assist the Developer in its LOMR application to FEMA, once the City has received certification that the pads are raised outside the flood plain without the construction of the flood control improvements. These are the recommendations of staff based on the financial realities of the project today and the activities of the Developer to protect the homes in the tract. However, not building this flood control structure means that the area south of Bogert Trail would remain without an all-weather crossing, including the Alta tract itself. This includes the subdivisions within and outside the City on Acanto Road, and the Indian Canyons themselves, which are several miles south of Acanto. There is no all-weather crossing on South Palm Canyon today and that condition would remain without the drainage structure discussed in this report. FISCAL IMPACT: Amending the Subdivision Agreement and Conditions of Approval to allow Tract 30050 to be completed without the construction of the flood control improvements would save the Community Redevelopment Agency at least $2,033,750 in bond proceeds. These funds could be used for other qualified capital projects in Merged Area #2, which includes the Canyon and Section 14. The Canyon Project Area and Section 14 are in the same Merged Project Area #2. OHM David J. Barakian UhnS. ay p d Director of Public Works/City Engineer om &Economic Develoloment Thomas J. Wil n David H. Ready Assistant City Manager Executive Director Attachments: 1) Letter from Andrew I. Sands, IRP EL Portal, LLC (Developer) 2) Letter from William E. Lawson, P.E., Stantec Consulting, Inc. (Engineer) aaa®�s 1RP Eh PORTAL ASSOCIATES,LLC 3199 Cody Court Palm Springs, CA 92264 July 17,2008 Mr.John,Raymond City of Palm Springs Director of Community and Economic Development 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Re_ Alta Flood Control Improvements Dear Mr. Raymond, As you know,the design of the Flood Control Improvements have been going on for over four years now. Back in June of 2004, your Agency set aside$2,033,750 for the Flood Control Improvements in question. At the time,both your Agency and Palm Canyon, LLC,(developer prior to IRP El Portal Associates, LLC)expected the money to be adequate for the cost of construction_ However after four years of design changes and delays to accommodate Riverside County Flood Control(RCFC),Desert Water Agency (DWA),the City of Palm Springs,the Tribe,the Allottees, and four years of cost escalation,the$2,033,750 is no longer sufficient to cover the cost of construction. The history of the Flood Control Improvements design is described in the attached letter from our consulting engineers,who are once again requesting additional funds to be able to complete their services. Without getting in too much detail,the following is a brief history: To begin with,the original design was modified numerous times in order to meet RCFC's maintenance requirements,the issue being the shallow structures that were initially designed to avoid existing DWA waterlines along South Palm Canyon and Bogart Trail. Then, in negotiating rights and fees for easements with the Tribe and Allottees,the project was more or less put on hold until an agreement could be reached on an alternative location for the Improvements. At the request of the tribe,the decision was made to move the bulk of the Flood Control Improvements from the easterly side to the westerly side of South Palm Canyon Drive. However,after substantial delays and many design considerations,the Tribe reversed their previous decision and the Flood Control Improvements were relocated once again to the easterly side. Additionally, further design changes were mandated as a result of the District's maintenance requirements of having a Mr.John Raymond July 17,2008 Page 2 6' deep reinforced concrete box(RCB) structure. Ultimately,this requirement resulted in a complete vertical realignment of South Palm Canyon Drive and the relocation of a number of DWA lines. Per the City's request,we obtained an engineer's estimate to construct the approved Flood Control Improvements. The Improvements were estimated at$2.7 million. This number,however,did not include the cost of the now required vertical realignment of South Palm Canyon Drive and the relocation of DWA lines,nor did it include similar work required on Bogart Trail. The total cost of this project,excluding costs we have incurred to date exceeding 5750,000,will now exceed$4 million. As indicated above,over the last four years we have expended in excess of$750,000 on this project trying to bring all the parties and design requirements together. Yet,we still face ongoing design costs,RCFC maintenance fees, and costs associated with purchasing the easements,the latter of which remains unresolved. We have worked diligently and in good faith to fulfill our obligations under the Conditions of Approval. The costs of the Improvements,however, after years of delays, design changes, and cost escalation are substantially more than the$2,033,750 bond originally set aside. Our casts to date as explained above,have substantially exceeded our initial budgeted financial obligations related to the Conditions of Approval and, given current market conditions,we are not in a position to further exceed our obligations and absorb the difference between the original cost and the projected costs of the newly designed Improvements. The ten single family lots in our subdivision that were deemed to be in the 100-year flood plain have been raised out of the plain. Therefore,we respectfully request that you relieve us of any further obligations related to the Flood Control Improvements. Sincerely, /Sands E ecutive Vice President Cc: David Ready Tom Wilson Palm Springs City Council oaa��� Slanlec Consulting Inc. 19 Technology brie Irvine CA 92610.2324 Tel:(949)923.6000 Fax (949)923.6121 Stantec — —._ . . .. ._ ___ ....... July 16,2008 File: 2040 014005-210 Concert Really Partners, LLC 601 South Figueroa Street Suite 3400 Los Angeles,California 90017 Attention: Mr.Andrew Sands, Managing Partner Reference: South Palm Canyon Channel and Acanto Drive Storm brain Design,Tract 30050 Dear Mr. Sands. Stantec Is currently out of funds to continue to service the above referenced project. I have reviewed the various stages of the construction plan preparation for the subject project and will describe below how this design has evolved to where it is today. I have also reviewed the Scope of Services covered by each of the project Change Orders, meeting minutes and other significant project correspondence and documents that have been prepared since the project was acquired by IRP El Portal Associates, LLC,in late 2004. The following paragraphs summarize the results of my findings in this revicew and we hope that this letter will help explain our request for additional Funds. Construction Plans Prior to the acquisition of this project by IRP El Portal Associates, LLC, three(3) plan submittals were made to Riverside County Flood Control&Water Conservation District(District)and were dated November 26, 2003, March 3. 2004 and June 30, 2004, respectively These plans were prepared for Palm Canyon,LLC who preceded IRP El Portal Associates in the development of Tract No. 30050 and the associated Dry Canyon Channel(now referred to as the South Palm Canyon Channel). These initial plans showed the channel as primarily an open trapezoidal channel along the easterly side of South Palm Canyon Drive(SPC Drive)with a reach of RCB(Reinforced Concrete Box)culvert from the inlet on the west side of SPC Drive at Acanto Drive to the open channel on the east side of the street,and similarly,a short reach of RCB passing under Bogert Trail to the cutlet in Canyon South Golf Course. The open channel was provided with a slightly weaving bottom alignment and intermittent ripfap protection. The Acanto Drive Storm Drain system consisted of 60"ID RCP(Reinforced Concrete Pipe)from Acanto Drive to a junction with the open channel southerly of the tract entrance read,and had 12 catch basin inlets in Acanto Drive. A short 24"RCP storm drain was also provided in Bogert Trail which Connected to the RCB there, and two inlets in SPC Drive were also provided The tract detention basin's 30"1D RCP outlet pipe also connected to the RCS southerly of Bogert Trail The RCB culvert structures were designed with very shallow heights of only three(3)10 four(4)feet in order to clear the existing DWA waterlines in the street. Ultimately, however, the District changed their view and opposed these shallow structures, and asked for alternative design solutions that were more condusive to District maintenance V,'TROJECTSt2040014o05maC1200 wrrVlr 8tantecjo1um_IRP_200e0716 doc 00061E 5tarl6ec July 16,2W Mr.Andrew Sands,Managing Partner Page 2 of 3 Reference: South Palm Canyon Channel and Acento Ddve Storm Drain Owtgn,TMt 80050 Concurrently, ongoing discussions between IRP El Portal Associates and Ague Cafiente Development Authority regarding the acquisition of easements far the project revealed that the Tribe wanted the flood control channel to be located on the westerly side of South Palm Canyon Drive for more flood control of Tribal Land. In June 2004 exhibits were prepared showing a continuous RCB facility,mostly along the westerly side of SPC Drive,but crossing to the east side when there was adequate clearance over the water lines. I recall a number of variations on this concept,but don't have exhibits for more than a few of them. Use of pre-cast RCS's was also studied during this period. In November 2004 art exhibit showing two options was prepared. One option was for a trap channel along the westerly side of SPC Drive with a large RCB crossing the street and continuing on to the golf course outlet. The second option was for a continuous RCB structure,mostly located on the westerly side of the street,but crossing at the same location as in the first option. The 60"ID RCP Acanto Drive storm drain was extended much further north to a point of connection with the RCB in these options. On January 26,2005,there was a meeting held at the District in which the issue of District facilities being constructed on Tribal lands was the primary topic of discussion.There was little or no agreement between the District and the Tribe and it was during the months that followed that we postponed the plan review process with the District and began to work more closely with the Tribe and the City of Palm Springs as we continued to work on altematives_ We had a number of meetings with the Tribe.DWA and MSA during that period and an June 3,2005 the Tribe sent a letter to the City proposing that an open channel be constructed on Tribal lands along the westerly side of SPC Drive. Progress was slow,however,but with the Tribe's cooperation we did develop an alignment and crossaecffon for the proposed channel andprepared exhibits showing the channel inlet at the same location previously proposed for the RCB Inlet(3 Submittal)at Acanto Drive,but with the outlet connecting to a proposed channel coming from the future westerly Alturas project Snow called Eagle Canyon)and passing under SPC Drive north of Bogert Trail into the golf course. In early 2005,Stantec prepared an exhibit showing the topographic mapping requirements for this channel concept and MSA submitted a proposal to perform the necessary field survey work and prepare the topographic map. A meeting was held at the Tribal Planning office on January 11,2006 to discuss the mapping and design requirements for the channel. A draft Memorandum of Understanding(MOU)was prepared by Dale Walters for the Tribe and submitted to the City, IRP El Portal Associates,and Stanteo for review on March 1,2006. Due to the lack of any further progress with the Tribe,however,the design work soon came to a standstill. On August 24,2006,we were advised that Dale Walters had left his positron at Tribal Planning and that the Tribe was withdrawing Its offer to allow the channel construction en Tribal lands. Concurrently, IRP El Portal Associates asked for increased assistance from Stamec to look for an acceptable solution to the drainage problem On January 5,2007,Marcus Fuller of the City of Palm Springs issued an e-mail indicating that the storm drain design effort was being"re-Initiated' On March 21. 2007,we met with the District again to come up with a viable solution for the project Stantee was than instructed by IRP El Portal Associates to prepare preliminary plans ASAP and submit them to the District for review. The requested submittal was made on April 5,2007, On May 15,2007 we received plan check comments from the District,and I attended a meeting with the District on June 12,2007 to discuss those comments, Although very detailed for a preliminary review,the District's comments formed a good set of design criteria for the preparation of the final construction plans. IRP EI Portal Associates however,was reluctant to allow Slantec to proceed with the final plan preparation V.%PR0JECTM204001400Woc120e wMttr Stentec Towm_IRP_20080716.dae 000013 Stantec July 16,2008 Mr.Andrew Sands,Managing Partner Page 3 of 3 Reference: South Palm Canyon Channel and Acanto drive Storm Drain Design,Tract 30050 until we were sure that the District and City would both support the proposed design. Stantec was eventually allowed to proceed with the final design and the construction plans were submitted to the District for review on December 21, 2007. On January 9,2008. Marcus Fuller(City) requested that Stantec also prepare Technical Specification and an Engineer's Opinion of the Estimated Construction Cost for the project for use in bidding out the construction of the project. The requested documents and a set of progress plans were submitted to the City and to the IRP El Portal Associates on April S. 2008, The submitted documents were not without additional design changes and delays. In order for the District to approve the design,the RCS's height had to be adjusted to meet District maintenance requirements, This in turn resulted in a vertical realignment of SPC Drive and the relocation of the 30"and 16"Desert Water Agency lines. Different options, including smaller,wider RCBs with access from the top were suggested but not approved by the District The current design, like the 314 Submittal of 2004. has the flood control channel on the easterly side, but there are significant design differences Based on comments received from the District and from the City the open portion of the channel is shorter in length now and has a straight alignment and a fully riprap-lined trapezoidal section. Beginning at the tract entrance road the channel is a buried RCB structure that extends upstream to the inlet on the westerly side of SPC Drive. The interior height of the RCS's has been increased to six(6)feel to satisfy District maintenance requirements;according to DWA, this will require a costly relocation of interfering portions of the waterlines in SPC Drive and in Bogart Trail Maintenance access to the RCS's and open channel remains a design issue with the District, but there is insufficient space available to give them all of the access that they want. The alignment of the Acanto Drive Storm Drain remains relatively unchanged, however,the profile of the pipe has been modified to achieve a minimum slope of one(1) percent,and the pipe material has been changed to a concrete arch section so as to allow the necessary earth cover over the pipe without major changes in the existing grading of the area. At the moment, after several rounds with the District and(he City some additional work on the plans will still be required in order to secure District and City approval of the plans for construction of the project. Change Orders To date, fourteen (14)change orders have been processed through IRP El Portal Associates in order to cover the changes in the design direction that have been described above. Additional funding will be required by Stantec to complete the construction plans and (o prepare and process a LCMR through FEMA for the final design if these facilities are to be constructed. Please let us know what your earliest convenient time to meet is so that we can outline the additional services required for Stantec to complete your project If you have any questions in regards to the information provided In this letter, please let me know. Sincerely, Wy�� �' '� 9'.' STANTEC CONSULTING INC. William E. Lawson, PE Senior Project Manager, Environment Tel:(949)923.6173 Fax(949)923.6077 c. Joe Long Kevin Brandt V;IAR0JECTS52040o140051doo120o Cornitr stanma_Tatum_IRP_2008a716.dgc 0000�.4