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HomeMy WebLinkAboutAppropriation Widening Hovely Ln E from Water Wy to Oasis Club Dr MEETI : DATE (140 v CITY OF PALM DESEJ CONTINUED TO (-1"-- -6 0 PASSED TO 2ND READING PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: Authorize the Appropriation of $954,500 from the General Fund to Transfer to Fund 400 and Appropriate $954,500 from Fund 400 for the Widening of Hovley Lane East from Water Way to Oasis Club Drive SUBMITTED BY: Ryan Gayler, Management Analyst DATE: April 10, 2003 CONTENTS: Agreement with Sunrise Desert Partners Recommendation: By Minute Motion: 1) Appropriate $954,500 from Fund 400 for the widening of Hovley Lane East from Water Way to Oasis Club Drive. 2) Appropriate $954,500 to the General Fund transfer account: 110-4199- 499-5010. 3) Authorize the transfer of $954,500 from the General Fund to Fund 400 for the widening of Hovley Lane East. The $954,500 includes the cost of construction of the road, median, and drainage improvements. Contingency money is also included. Executive Summary: Over the last ten years, Hovley Lane East has seen a dramatic increase in traffic. This increase is due largely to spillover from Fred Waring Drive and Country Club Drive. In the late 1990's, the Public Works Department sought to find a means to widen Hovley Lane East to alleviate the increased traffic volume. Sunrise Desert Partners dedicated right-of-way to the City of Indian Wells to provide room for two eastbound lanes of traffic and a median. Sunrise Desert Partners is planning a large development South of Hovley Lane East and, as part of the development agreement, they are required to construct the two eastbound lanes. They originally were going to construct the road at the end of the project, but in August 2000, the City of Palm Desert approved a reimbursement agreement requiring the developer to construct the road and medians at the beginning of the project, providing that the City of Palm Desert finance it. The developer is required to reimburse the City of Palm Desert within five years of the final payment date. Staff Report—Widening .,, Hovley Lane East at Water Way & ..,psis Club Drive Page 2 of 2 April 10, 2003 The City of Palm Desert had money budgeted to finance the subject project, but in wake of the terrorist attacks of 2001 and the subsequent lag in the economy, the developers were not in a position to start a large housing development. Because of the apparent decrease in interest of the developers for developing the land, the Public Works Department reprogrammed the budgeted money to higher priority projects. We currently do not have money budgeted to pay for the widening of Hovley Lane East, but at the end of March 2003, the developer contacted the Public Works Department to see if we were ready to finance the project. All of our Measure "A" money has been allocated to projects that are of higher priority, but because of the reimbursement agreement, we are obligated to fund this project. One solution is to reprogram money from other street projects; however, most of those are already designed and ready for construction during Summer 2003. They are also a higher priority on our Capital Project list. Another alternative is to use General Fund money to finance the project. The developer is required to reimburse the City of Palm Desert in two to five years. If the developer takes longer than two years to reimburse us, the City begins to collect interest at six percent (6%) per year. Therefore, staff recommends, City Council, by minute motion, appropriate $954,500 to the General Fund transfer account: 110-4199-499-5010, and authorize the transfer of $954,500 from the General Fund to Fund 400 for the widening of Hovley Lane East, and appropriate $954,500 from Fund 400 for the subject project. Submitted By: Depart t Head: / 02.4:- n Gayl r Michael Errante, P.E. Management Analyst Acting Director of Public Works/ City Engineer Approval: 0 ACM for Dev pment Services Director of Finance City Manager /sd G:1PubWorks\Staff Reports120031April 1011-lovley Lane Widening from Water Way to basisclub Dnve aoc Contract No. C18170 REIMBURSEMENT AGREEMENT This Reimbursement Agreement is made this24th day of August 2000, between the City of Palm Desert, a Municipal Corporation ("City"), and Sunrise Desert Partners, a California Limited Partnership ("Developer"). RECITALS A. WHEREAS, Developer is the owner of real property in the City of Indian Wells (the "Real Property") on which Developer proposes to build a master-planned residential golf course community with two golf courses and approximately 650 homes (the "Project"). The Real Property is described in Exhibit A attached hereto. B. WHEREAS, the northerly boundary of the Real Property abuts Hovley Lane East. The north half of Hovley Lane East is located in the City of Palm Desert and has been fully improved (except for portions of a future median). The south half of Hovley Lane East, which is not improved, is located in the City of Indian Wells. C. WHEREAS, Developer will be required as a condition of approval of the Project to improve the south half of Hovley Lane East. However, based on Developer's phasing plan, such improvements would not occur for several years. City has expressed an interest in accelerating the improvement of the south half of Hovley Lane East, and Developer is willing to do so, on the terms and conditions herein set forth. D. WHEREAS, Developer has caused plans for the improvement of the south half of Hovley Lane East, along with those portions of the median located in the north half, to be prepared (the "Plans"). The Plans, which are described in Exhibit B attached hereto, have been approved by City and by the City of Indian Wells. E. WHEREAS, Developer has dedicated the portion of the Real Property included in the future right-of-way for Hovley Lane East to the City of Indian Wells and the City of Indian Wells has accepted such dedication. . F. WHEREAS, based on the forgoing recitals, the parties desire to enter into this Reimbursement Agreement. NOW, THEREFORE, City and Developer hereby agree as follows: 1. Developer shall construct and install the improvements to the south half of Hovley Lane East in accordance with the Plans ("South Half Improvements"). Developer shall also construct and install the portions of the median located in the north half of Hovley Lane East in accordance with the Plans ("North Half Improvements"). Developer shall enter into a contract with a qualified contractor to perform the work, and such contract shall be subject to City's reasonable prior approval. The contractor shall post performance and labor and material bonds in favor of City and the City of Indian Wells in form and substance reasonably acceptable to City (and to the City of Indian Wells.) Developer shall diligently pursue such construction and installation to completion. Contract No. C18170 2. (a) City shall reimburse Developer for the actual cost of the preparation of the Plans and for the actual construction costs of the South Half Improvements. Such reimbursement shall be made to Developer as the work progresses, no more frequently than once each month, based on requests for payment made by Developer to City. Each request for payment shall be accompanied by appropriate invoices from the contractor and evidence of payment thereof by Developer, together with appropriate mechanics lien releases. The total amount reimbursed to Developer in accordance with this Paragraph 2 (a) is referred to as the "Total Costs." The date of the final payment by City to Developer hereunder is referred to as the"Final Payment Date." (b) The parties acknowledge that the actual construction costs of the North Half Improvements will be reimbursed to Developer by City from (i) funds currently held by City on account of Community Facilities District No. 91-1 (Indian Ridge), and (ii) funds previously deposited by the developers of other adjacent projects. (c) The parties acknowledge that certain related improvements will not be completed at this time, but will be completed in the future in accordance with the conditions of approval for the Project. Such future improvements include: (i) Final pavement cap on the south half of Hovley Lane East; (ii) Median landscaping; (iii) Sidewalk along south side of Hovley Lane East; and (iv) Landscaping along south side of Hovley Lane East. 3. Developer shall reimburse City for an amount equal to the Total Costs, plus interest, as set forth in this paragraph. The Total Costs shall not bear interest for a period of two years after the Final Payment Date. Thereafter, beginning two years after the Final Payment Date, the Total Costs shall accrue interest at the rate of six percent (6%) per annum. Developer shall make such reimbursement to City on the earlier of the following dates: a. Five years after the Final Payment Date; or b. The date of completion (evidenced by a Certificate of Occupancy issued by the City of Indian Wells) of the 500`h home in the Project. 4. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. In the event legal action is necessary to enforce this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and costs, in addition to any other relief to which it may be entitled. Contract No. C18170 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. CITY OF PALM DESERT, SUNRISE DESERT PARTNERS, a Munic •. 1 . : on a California Limited Partnership, managing V1061: member By:SDP Gen Par, By: a Delaware corporation, General Partner Sheila R. Gilligan, Clerk Ov Phillip K. Smith, Jr., President City of Palm Desert, Californi. APPROVED AS TO CONTENT ,// Richa d J. Fol • , P.E. Assistant City Manager/ Public Works Director APPROVED AS TO FORM Da id J. in, City Attorney Contract No. C18170 EXHIBIT "A" REAL PROPERTY THE WEST HALF OF SECTION 14 AND THE EAST HALF OF SECTION 15, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA. Contract No. C18170 EXHIBIT "B" HOVLEY LANE IMPROVEMENT PLANS STREET IMPROVEMENT PLANS (SHEETS 1 THROUGH 10) PREPARED BY RICK ENGINEERING COMPANY AND LABELLED: HOVLEY LANE EAST STREET IMPROVEMENT PLAN CITY OF INDIAN WELLS AND CITY OF PALM DESERT STREET SIGNING AND STRIPING PLANS (SHEETS 1 THROUGH 9) PREPARED BY RICK ENGINEERING COMPANY AND LABELLED: HOVLEY LANE EAST SIGNING AND STRIPING PLAN CITY OF INDIAN WELLS AND CITY OF PALM DESERT CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT • State of California 1 ss. I County of Rivf. rs1ciP r On f'e 6ru.ovr 6,�lao/ before me, C.k 2,r y/ lie Ya�c•e N 7�ec o 1)...../3C�� if DateName and Title of Officer(e.g.,'Janeboe,Notary Publi ) �h ar personally appeared ph ; 11 i� k inS , � , % Name(s)of Signer(s) personally known to me e ❑ proved to me on the basis of satisfactory c• evidence Il to be the person(s} whose name(s) is/afe subscribed to the within instrument and acknowledged to me that he/sFteAtiey executed ¢ CHERYL DE VORE the same in his/heir authorized tk a a, f fs`_ Commission#1240158 Z capacity(+e�, and that by his/iteeir z 4 ••- public-California t signature(s) on the instrument the person(si, or �;- �^„ Notary Z e Riverside County the entit upon behalf of which the person(s) ` myCornm.6 es Oct 30,2tp3 acted, exec d the instr nt. �' h ESS , y ha/ n officia eat. 1 I Place Notary Seal Above la.gna e of Notary Public •I lC '� OPTIONAL 'i y Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. t„ Description of Attached D�j cument si Title or Type of Document: IC e i()1 10-d4--C.3 ¢.M en A. 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