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HomeMy WebLinkAboutPost-Meeting Agenda Package - Palm Desert City Council - Special Meeting_Jul18_2024 PALM DESERT CITY COUNCIL SPECIAL REGULAR MEETING POST-MEETING AGENDA Thursday, July 18, 2024 3:00 p.m. Council Chamber, City Hall 73-510 Fred Waring Drive Palm Desert, California This is a joint meeting of the Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, Palm Desert Housing Authority and the Palm Desert Board of Library Trustees. Pursuant to Assembly Bill 2449, this meeting may be conducted as a hybrid meeting allowing public access via teleconference or in person, and up to two Councilmembers may attend remotely. WATCH THE MEETING LIVE: Watch the City Council meeting live at the City’s website: www.palmdesert.gov under the “Council Agenda” link at the top of the homepage, or on the City’s YouTube Channel. OPTIONS FOR PARTICIPATING IN THIS MEETING: If unable to attend the meeting in person, you may choose from the following options: OPTION 1: VIA EMAIL Send your comments by email to: CouncilMeetingComments@palmdesert.gov. Emails received prior to 10:00 a.m. on the day of the City Council meeting will be made part of the record and distributed to the City Council. Emails will not be read aloud at the meeting. OPTION 2: LIVE VIA ZOOM Access via palmdesert.gov/zoom or zoom.us, click “Join Meeting” and enter Webinar ID 833 6744 9572. 1. OPTION 3: LIVE VIA TELEPHONE (213) 338-8477 and enter Meeting ID 833 6744 9572 followed by #.1. Indicate that you are a participant by pressing # to continue.2. During the meeting, press *9 to add yourself to the queue and wait for the Mayor or City Clerk to announce your name/phone number. Press *6 to unmute your line and limit your comments to three minutes. 3. Pages 1.CALL TO ORDER 2.ROLL CALL 3.ACTION CALENDAR The public may comment on individual Action Items within the three-minute time limit. Speakers may utilize one of the three options listed on the first page of the agenda. 3.a ADOPTION OF A RESOLUTION AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25 4 RECOMMENDATION: Adopt a Resolution entitled “RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25.” 3.b ADOPTION OF A RESOLUTION AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25 258 RECOMMENDATION: Adopt a Resolution entitled “A RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25.” 4.ADJOURNMENT City Council Meeting 2 5.PUBLIC NOTICES Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the designated office for inspection of records in connection with this meeting is the Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert. Staff reports for all agenda items considered in open session, and documents provided to a majority of the legislative bodies are available for public inspection at City Hall and on the City’s website at www.palmdesert.gov. Americans with Disabilities Act: It is the intention of the City of Palm Desert to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to inform us of your needs and to determine if accommodation is feasible. AFFIDAVIT OF POSTING I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda for the Palm Desert City Council was posted on the City Hall bulletin board and City website not less than 24 hours prior to the meeting. /S/ Michelle Nance Deputy Clerk II City Council Meeting 3 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: July 18, 2024 PREPARED BY: Veronica Chavez, Director of Finance REQUEST: ADOPTION OF A RESOLUTION AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25 RECOMMENDATION: Adopt a Resolution entitled “RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA , AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25.” BACKGROUND/ANALYSIS: The CFD is located in the area north of Desert Willow between Portola and Cook Street, whose improvements are financed with the proceeds of the CFD’s $50 million and $17.915 million bonds issued to fund the improvements for streets, infrastructure, water, sewer, park improvements, and land acquisitions. Annually, the City Council must approve the levy of the special tax. Staff requests that the City Council authorize the levy of a special tax to pay for costs and expenses related to this District. The maximum rate of the special tax for the next fiscal year is attached to the resolution as Exhibit A. Approval of the resolution will allow the County Auditor to collect taxes as they become due. FINANCIAL IMPACT: The CFD 2005-1 (University Park) bonds are repaid through taxes collected on the respective parcels located within the boundaries. Approval of the resol ution will allow the parcels to be levied for the 2024-25 tax year and provide the city with the funds to pay the debt service on a timely basis. ATTACHMENTS: 1. Resolution 2. Exhibit “A” – Proposed Special Tax Rates 4 RESOLUTION NO. 2024-____ A RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25 WHEREAS, the City Council of the City of Palm Desert (hereinafter referred to as the "Agency"), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a Community Facilities District, as authorized pursuant to the terms and provisions of the "Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. Community Facilities Distric t No. 2005-1 shall hereinafter be referred to as "District" and, WHEREAS, this City Council, by Ordinance as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said District, and this City Council intends to establish the specific rate of the special tax to be collected for the next fiscal year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. That the above recitals are true and correct. SECTION 2. That the special tax rates for each tax category to be used to generate special tax revenues, which will be collected to pay for the costs and expenses for the next fiscal year (2024-25) for the referenced District, will not exceed the rates as set forth in the attached, referenced and incorporated Exhibit “A”. SECTION 3. That the rate as set forth above does not exceed the amount as previously authorized by Ordinance of this Council, and is not in excess of that as previously approved by the qualified electors of the District. SECTION 4. The Special Tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties, procedures and sale in case of any delinquency for ad valorem taxes. The Tax Collector is hereby authorized to deduct reasonable administrative costs incurred in collecting any said Special Tax. SECTION 5. Monies above collected shall be paid into the District funds. SECTION 6. Upon receipt from the County of the final secured tax roll, the special tax consultant shall determine the special tax levy needed to meet the Special Tax Requirement, which shall not exceed the rates shown in Exhibit A hereto. The Auditor of the County is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land effected in a space marked "Public Improvements, Special Tax" or by any other suitable designation, the installment of the Special Tax, and for the exact rate and amount of said tax. 5 Resolution No. 2024-____ Page 2 2 SECTION 7. The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such special tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection. SECTION 8. Special Taxes are to be levied on non-exempt parcels within the District. Should it be discovered that any taxable parcels are not submitted to the County Auditor for inclusion into the 2024-25 Tax Roll subsequent to the submittal deadline of August 10, 2024, the City Council directs the City of Palm Desert staff or their agents to bill such parcels directly via U.S. mail using the rates as determined in Section 6. ADOPTED ON ________________, 2024. KARINA QUINTANILLA MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK 6 Resolution No. 2024-____ Page 3 3 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2024-__ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on _______________________, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________. ANTHONY J. MEJIA CITY CLERK 7 Exhibit “A” Community Facilities District No. 2005-1 (University Park) Proposed Special Tax Rates Fiscal Year 2024-25 The following tables summarize the Assigned and the Proposed Special Tax Rates relating to each land use class. Zones A – D LAND USE CLASS SPECIAL TAX RATE MULTIPLIER ASSIGNED SPECIAL TAX RATE PROPOSED SPECIAL TAX RATE (1) Developed Property Zone A Per Acre $21,000 $21,000 Zone B Per Acre $27,000 $27,000 Zone C Per Acre $27,000 $27,000 Zone D Per Acre $23,000 $23,000 Undeveloped & Provisional Undeveloped Property Zone A Per Acre $21,000 $21,000 Zone B Per Acre $27,000 $27,000 Zone C Per Acre $27,000 $27,000 Zone D Per Acre $23,000 $23,000 (1)The Proposed Special Tax Rates to be Levied for Fiscal Year 2024/2025 will not exceed the Assigned Special Tax Rates described above. Zone E LAND USE CLASS SPECIAL TAX RATE MULTIPLIER RESIDENTIAL FLOOR AREA ASSIGNED SPECIAL TAX RATE PROPOSED SPECIAL TAX RATE(1) Single Family Property Per square foot of Residential Floor Area > 2,300 $1.44 $1.44 Single Family Property Per square foot of Residential Floor Area 2,300 - 1,725 $1.67 $1.67 Single Family Property Per square foot of Residential Floor Area < 1,725 $1.38 $1.38 Multifamily Property Per square foot of Residential Floor Area N/A $1.50 $1.50 Non Residential Per Acre N/A $28,000 $28,000 Undeveloped Per Acre N/A $28,000 $28,000 (1)The Proposed Special Tax Rates to be Levied for Fiscal Year 2024/2025 will not exceed the Assigned Special Tax Rates described above. 8 CITY OF PALM DESERT STAFF REPORT REQUEST: CONSIDERATION OF THE FORMATION OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT (CFD) NO. 2005-1 UNIVERSITY PARK) SUBMITTED BY: DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING DATE: JANUARY 12, 2006 CONTENTS: RESOLUTION NO. 06- 3 RESOLUTION NO. 06- 4 RESOLUTION NO. 06- JOINT FACILITIES AGREEMENT RESOLUTION NO. 06- 6 RESOLUTION NO. 06- 7 RESOLUTION NO. 06- 8 RESOLUTION NO. 06- 9 ORDINANCE NO. 1107 NEGATIVE DECLARATION Recommendation: That the City Council adopt the following resolution: Resolution No. 06-_3__, a resolution of the City Council of the City of Palm Desert approving the form of a road improvement agreement relating to Gerald Ford Drive, by and among the City of Palm Desert and certain property owners. II. That the City Council reconvene the public hearing regarding the City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the University Park CFD"), adopt the following resolution during the public hearing, and take public testimony regarding the University Park CFD: Resolution No. 06- 4 , a resolution of the City Council of the City of Palm Desert modifying the resolution of intention to eliminate certain facilities from financing by proposed City of Palm Desert Community Facilities District No. 2005-1 (University Park). EZ -C !yd 9-'Vi' Ujj4, 9 Staff Report Consideration of Formation of City of Palm Desert CFD No. 2005-1 (University Park) Page 2 of 7 January 12, 2006 III. If majority protests are not received prior to the conclusion of the public hearing, that following the public hearing: A. That the City Council adopt each of the following resolutions: 1. Resolution No. 06- 5 approving the form of a Joint Community Facilities Financing Agreement by and among the City of Palm Desert, the Coachella Valley Water District, and property owners pertaining to the City of Palm Desert Community Facilities District No. 2005-1 (University Park); 2. Resolution No. 06- 6 , a resolution of formation of the City Council of the City of Palm Desert to establish City of Palm Desert Community Facilities District No. 2005-1 (University Park), to make environmental findings with respect thereto, to adopt a mitigated negative declaration in connection therewith, to establish an appropriations limit therefore, to authorize the levy of a special tax therein, and to submit the establishment of an appropriations limit and the levy of a special tax to the qualified electors thereof; 3. Resolution No. 06- 7 , a resolution of the City Council of the City of Palm Desert to declare the necessity to incur bonded indebtedness within City of Palm Desert Community Facilities District No. 2005-1 University Park); 4. Resolution No. 06-__a_. a resolution of the City Council of the City of Palm Desert calling a special election within City of Palm Desert Community Facilities District No. 2005-1 (University Park). B. That the City Clerk, who has received from each landowner within the University Park CFD a Consent and Waiver waiving the timelines under the California Elections Code (among other things) and consenting to a special election to be held after the close of the public hearing, conduct an election in connection with the University Park CFD. Each of the 8 property owners within the University Park CFD, who are the only qualified electors within the district, receives one vote per acre or portion thereof that it owns within the University Park CFD. C. That if more than a 2/3 vote in favor of the ballot propositions is received, following the results of the election, Council makes a finding and declaration of the results of the special election by approving the following resolution: G \RDA\Mana Hunt\WPDATA\YRIGOYEN\STFRPTS\011206UmversityParkCFD.DOC 10 Staff Report Consideration of Formation of City of Palm Desert CFD No. 2005-1 (University Park) Page 3 of 7 January 12, 2006 Resolution No. 06- 9 , a resolution of the City Council of the City of Palm Desert declaring the results of a special election in City of Palm Desert Community Facilities District No. 2005-1 (University Park) and directing the recording of a notice of special tax lien D. That City Council conduct its first reading of Ordinance No. 1107 authorizing the levy of the special tax within the University Park CFD: Ordinance No. lim, an ordinance of the City Council of the City of Palm Desert acting in its capacity as the legislative body of City of Palm Desert Community Facilities District No. 2005-1 (University Park) authorizing the levy of a special tax within that district. Executive Summarv: Approval of the attached documents is required to form the Mello -Roos Community Facilities District to fund public infrastructure improvements with the issuance of the bonds for the University Park CFD, and to provide for the developers' widening and improvement of the north half of Gerald Ford at their own expense (with possibility of reimbursement from a future separate CFD, only if formed and to the extent available) concurrently with their construction and improvement of the south half of Gerald Ford with University Park CFD bond proceeds. Backaround: Staff has been working with the Coachella Valley Water District ("CVWD") and the developers in the formation of the University Park CFD. If facilities of the CVWD are to be financed by the University Park CFD, the Mello -Roos Community Facilities Act of 1982 (the "Mello -Roos Act"), requires that a joint community facilities agreement, which must be approved by resolution, be entered into between the City and the CVWD providing for the allocation and distribution of the proceeds of the special tax levy among the parties to the agreement. The purpose of the University Park CFD will be to provide for the payment for improvements to serve the property within the CFD, such as streets, sewers, water systems, well sites (including site land acquisition), storm drains, traffic signals, parks including acquisition), utilities, Cook Street pedestrian bridge, and landscaping. Other uses are for various developer impact fees such as the Fringed -Toed Lizard fee, public works drainage, signals, sewer and water fees, CVAG transportation fees, and Art -in - Public Places fees. The boundaries of the University Park CFD coincide with the boundaries of Parcel Map No, 31730, as adjusted, and total acreage of the property G \RDA\Maria Hunt\WPDATA\YRIG0YEN\STFRPTS\011206UniversttyParkCFD.DOC 11 Staff Report Consideration of Formation of City of Palm Desert CFD No. 2005-1 (University Park) Page 4 of 7 January 12, 2006 within the University Park CFD is approximately 266.877 acres. As stated in the Community Facilities District Report dated December 8, 2005, prepared and filed by MuniFinancial with the City Clerk prior to the opening of the public hearing on the same date, the estimated aggregate cost of the facilities to be financed by the University Park CFD is approximately $57,776,627. The location of facilities to be financed by the University Park CFD generally includes the following streets: Frank Sinatra Drive: from West of Cook Street to College Drive Cook Street: from Frank Sinatra Drive to Gerald Ford Drive Portola Avenue: from College Drive to Gerald Ford Drive Southern half of Gerald Ford Drive: from Portola Avenue to Cook Street University Park Drive: from College Drive to Cook Street Technology Drive: from College Drive to Gerald Ford Drive Pacific Avenue: from College Drive to Gerald Ford Drive College Drive: from Portola Avenue to Frank Sinatra Drive In -tract streets The University Park CFD will finance the improvement of only the south half of Gerald Ford, but at the City's request, the developers will provide for the concurrent improvements to both sides of Gerald Ford, in order to minimize the traffic interruptions and other construction impacts along Gerald Ford. For this purpose, Mike Marix's Palm Desert North 80, LLC, has entered into an agreement with Tom Hover's Palm Desert Funding Company, LP, to provide for Hover's construction of the concurrent improvements to both sides of Gerald Ford, funded by a deposit provided by Mike Marix. The developer shall provide a performance bond to assure that the project is completed. The City is a signatory to this agreement to secure the benefit of the performance bond and also as a requirement of the Mello -Roos Act in order to render Marix's expenditures for the construction of the north half of Gerald Ford eligible for reimbursement from a potential future community facilities district encompassing property north of Gerald Ford, if the Council decides to form such future district. Under the Mello -Roos Act, the City's agreement to reimburse Marix from such future community facilities district, if formed, does not and shall not constitute a debt or liability of the City and is limited to the extent bond proceeds are available from such district. Pursuant to the California Environmental Quality Act (CEQA), City staff prepared an Initial Study for the project, which generally consists of formation of the District to finance the facilities described above. The Initial Study concluded that the project would not result in any significant adverse environmental impacts with the implementation of certain mitigation measures. A Mitigated Negative Declaration was prepared and G\RDAtMana Hunt\WPDATA\YRIGOYEWSTFRPTS\011206Untvers!tyParkCFD.DOC 12 Staff Report Consideration of Formation of City of Palm Desert CFD No. 2005-1 (University Park) Page 5 of 7 January 12, 2006 circulated for a 20-day public review and comment period, during which the City received one comment letter from the Sunline Transit Agency, which discusses installation of sidewalks in conjunction with the University Park CFD improvements. As noted on "Exhibit A" to the Initial Study, sidewalks are included within the street improvements to be financed with proceeds of bonds issued by the University Park CFD. Approximately 3 weeks after the close of the public review and comment period, the City also received one comment letter from the CVWD. The CVWD comment letter requested further analysis of the effects of the construction of the University Park CFD facilities upon water quality, discharge, and groundwater; and made inquiries or corrections as to certain statements found on pages of the General Plan Final Environmental Impact Report (EIR circulated as SCH #2003051103) (the "General Plan FEIR") which were included in the Mitigated Negative Declaration to incorporate related mitigation measures previously approved. Such pages of the General Plan FEIR also included discussions of potential developmental impacts upon water quality, discharge, and groundwater. It is recommended that the City Council make the following minor corrections to the Mitigated Negative Declaration and the Initial Study as follows: revise items a) and b) under the heading "HYDROLOGY AND WATER QUALITY" in the Initial Study Checklist to indicate "Less Than Significant With Mitigation Incorporated" rather than "No Impact;" amend Section 9 of the Environmental Checklist Discussion within the Mitigated Negative Declaration to clarify that the drainage facilities and retention basins required to be constructed as part of the University Park project, together with the identified and included mitigation measures from the General Plan FEIR (such as water conservation and landscaping measures, wastewater, and reclamation), will be implemented and can mitigate the potential impacts of development on water quality, discharge, and groundwater resources to less than significant impacts; Delete from page III-46 (attached from the General Plan FEIR) the sentence "The Thousand Palms Canyon Wash conveys flows, which originate north of Indio Hills and along the south -facing slopes of the Little San Bernardino Mountains." Add the phrase "and other sources of irrigation water" to the general mitigation measure under the heading "D" on page III-93 (attached from the General Plan FEIR), so that the mitigation measure reads as follows: "The City shall support CVWD's continuation and expansion of groundwater recharge efforts and use of tertiary -treated wastewater and other sources of G \RDAWana Hunt\WPDATA\YRIG0YEWSTFRPTS\011206UntversilyParkCFD DOC 13 Staff Report Consideration of Formation of City of Palm Desert CFD No. 2005-1 (University Park) Page 6 of 7 January 12, 2006 irrigation water as a means of reducing demand for groundwater resources." Pursuant to Section 15073.5(c)(4) of the CEQA Guidelines, no recirculation of the Initial Study and Mitigated Negative Declaration is required because the information provided above merely clarifies and makes insignificant modifications to the Initial Study and Mitigated Negative Declaration. In further response to CVWD comment numbered 2, no sewer line under Interstate 10 is contemplated to be funded by the University Park CFD, although sewer connection fees or other development impact fees payable to the CVWD are eligible for reimbursement from the University Park CFD, and the CVWD may elect to construct such a sewer line from its impact fee programs, which are subject to CEQA at a later date. In response to CVWD comment numbered 7, the Myoma Dunes Mutual Water Company is not expected to construct any facilities to be funded by, does not own any property within, and is not expected to be involved in any proceedings for the University Park CFD. A Mitigation, Monitoring and Reporting Plan setting forth the mitigation measures has been prepared for the project and is attached as Exhibit "C" to the resolution establishing the University Park CFD. Future Actions: The Council will be asked at a later date to (i) adopt the ordinance providing for the levying of the special tax and (ii) adopt a resolution(s) to issue bonds and approving bond documents and an acquisition agreement. G.\RDA\Mana Hunt\WPDATA\YRIGOYEN\STFRPTS\011206UniversityParkCFD DOC 14 Staff Report Consideration of Formation of City of Palm Desert CFD No. 2005-1 (University Park) Page 7 of 7 January 12, 2006 Staff recommends that the findings of the special election be considered, District be formed, and authorize the issuance of bonds to provide for the construction of regional public improvements as outlined in the report. Submitted by: fDave Yrig Director o. DY:RCa`.mh Approval: elopment/Housing eA Carlos L. G ega, City Manager Approval: tij McCarthy ACM RedeveloD v Paul Sfdibsorf:,Virector-o--fnnance G \RDAWana Hunt\WPDATA\YRIGOYEMSTFRPTS\011206UniversityParkCFD DOC 15 RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING THE FORM OF A ROAD IMPROVEMENT AGREEMENT RELATING TO GERALD FORD DRIVE, BY AND AMONG THE CITY OF PALM DESERT AND CERTAIN PROPERTY OWNERS RECITALS: WHEREAS, in accordance with a request set forth in a petition signed by the owners of certain land proposed for inclusion in a proposed community facilities district the "Petitioning Landowners"), the City Council (the "City Council") of the City of Palm Desert, California (the "City"), has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 (University Park) and to Authorize the Levy of a Special Tax within City of Palm Desert Community Facilities District No. 2005- 1 (University Park)" (the "Resolution of Intention to Establish DistricY') stating its intention to conduct proceedings to form City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "University Park CFD") pursuant to the Mello- Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "AcY') to finance certain public facilities to serve the University Park CFD (the "Facilities"); and WHEREAS, a copy of the Resolution of Intention to Establish District setting forth a description of the proposed boundaries of the University Park CFD, the Facilities to be financed by the University Park CFD, including incidental expenses, and the rate and method of apportionment of the special tax proposed to be levied within the University Park CFD is on file in the office of the City Clerk of the City; and WHEREAS, included among the Facilities proposed to be financed by the University Park CFD are certain improvements to the south half of Gerald Ford Drive the "South Road Improvements") necessary to serve the property within the proposed University Park CFD; and WHEREAS, Palm Desert Funding Company, LP, a Delaware limited partnership the "South Owner"), is one of the Petitioning Landowners and will be constructing, or causing the construction of, the South Road Improvements; and WHEREAS, Palm Desert North 80, LLC, a California limited liability company the "North Owner"), is the owner of certain real property located in the City and along the north side of Gerald Ford Drive (the "North Property"), but located outside of the University Park CFD and not subject to the proposed levy of special taxes within the University Park CFD; and WHEREAS, the North Owner intends to develop the North Property and acknowledges that such development of the North Property will require the widening of, 1 W\Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Resolu6on Approving Road Improvement Agreement(Palm Desert CFD 2005-1)DOC 1'G-IO I.IOi2\8G IOO.2 16 and other improvements to, the north side of Gerald Ford Drive (the "North Road Improvements") along the portion thereof that is contiguous with the North Property; and WHEREAS, the City desires, in order to minimize traffic interruptions and other construction impacts along the portion of Gerald Ford Drive bordered by the University Park CFD and the North Property, that the South Road Improvements and the North Road Improvements be constructed and completed concurrently; and WHEREAS, funds of the University Park CFD, if formed, are not, and will not be, available to finance the North Road Improvements; and WHEREAS, the North Owner intends to petition the City to form a separate community facilities district encompassing the North Property (the "Proposed North CFD") pursuant to the Act to finance certain public facilities to serve the North Property, including the North Road Improvements; and WHEREAS, the North Owner has agreed to pay for the North Road Improvements, and South Owner has agreed to construct the same concurrently, and in connection with, South Owner's construction of the South Road Improvements; and WHEREAS, Section 53314.9 of the Act permits the City Council, at any time before or after the formation of the Proposed North CFD, to accept advances of work in- kind, such as the North Road Improvements, from any private entity, such as the South Owner and the North Owner, provided any such work in-kind shall have been performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority of, the City; and WHEREAS, Section 53314.9 of the Act also provides that, pursuant to an agreement approved by resolution, the City may agree to reimburse to the North Owner, solely from available funds of the Proposed North CFD, if formed, the value or cost, whichever is less, of the work in-kind, as determined by the City Council, and under the Act any such agreement shall not constitute a debt or liability of the City; and WHEREAS, in accordance with Section 53314.9 of the Act, the form of a Road Improvement Agreement by and among the City, the South Owner, and the North Owner (the "Road Improvement AgreemenY'), has been presented to this City Council for its consideration. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT: Section 1. Recitals. The above recitals are all true and correct. Section 2. A proval of Road Improvement Aareement. The form of Road Improvement Agreement as presented to this City Council and on file with the City Clerk is hereby approved. The Mayor is hereby authorized and directed to execute and deliver the Road Improvement Agreement 2 W\Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Resolu6on Approving Road Improvement Agreement(Palm Desert CFD 2005-1)DOC 1'G-IO I.IOi2\8G IOO.2 17 substantially in the form on file with the City Clerk and presented to this meeting, with such additions thereto or changes or insertions therein as may be approved by the Mayor (such approval to be conclusively evidenced by such execution and delivery). PASSED AND ADOPTED this 12th day of January, 2006, by the following vote: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers Jim Ferguson, Mayor ATTEST: Rachelle D. Klassen, City Clerk W\Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Resolu6on Approving Road Improvement Agreement(Palm Desert CFD 2005-1)DOC 1'G-IO I.IOi2\8G IOO.2 18 ROAD IMPROVEMENT AGREEMENT THIS ROAD IlVII'ROVEMENT AGREEMENT(this"Agreement") is entered into as of by and among PALM DESERT FUNDTNG COMPANY, LP, a Delaware limited partnership("South Owner"), PALM DESERT NORTH 80, LLC, a California limited liability company("North Owner"), and the C1TY OF PALM DESERT, a California municipal corporation("City"), with respect to the following: RECITALS: WHEREAS, South Owner is the owner of certain real property in the City of Palm Desert, County of Riverside, State of California, which property is located on the south side of Gerald Ford Drive as depicted on Exhibit A attached hereto and more particularly described on Exhibit B Attached hereto (the"South Property"). WHEREAS, North Owner is the owner of certain real property located in the City of Palm Desert, County of Riverside, State of California, which property is located on the north side of Gerald Ford Drive as depicted on Exhibit C attached hereto and more particularly described on Exhibit D attached hereto (the"North Property"). WHEREAS, Desert Wells 237, LLC, a California limited liability company("Desert Wells"), and Albor Properties III, L.P., a California limited partnership("Albor"), are owners of certain real property in the City of Palm Desert, County of Riverside, State of California, which property is located on the south side of Gerald Ford Drive as depicted on Exhibit A attached hereto and more particularly described on Exhibit 1 attached hereto(the"DW/AB Property"). WHEREAS, South Owner has options to purchase, among other things, the DW/AB Property from Desert Wells and Albor pursuant to(a)that certain Option Agreement dated as of June 23, 2005, executed by South Owner and Desert Wells (the"DW Option"), and(b)that certain Option Agreement dated as of June 23, 2005, executed by South Owner and Albor(the AB Option" and together with the DW Option, the"Option Agreements"). WHEREAS, South Owner intends to purchase the DW/AB Property pursuant to the Option Af;reements, with the closing thereof projected to occur in early 2006(the"Closing"). WHEREAS, in connection with South Owner's proposed development of the South Property(the"South Development"), City is requiring South Owner to widen and otherwise improve the south side of Gerald Ford Drive along the portion thereof that is contiguous with the South Property(the"South Improvements"). WHEREAS, in connection with the South Development and at the request of South Owner, City has commenced proceedings to form a community facilities district("CFD")pursuant to the Mello-Roos Community Facilities Act of 1982 (California Government Code Sections 53311, et seq.) (the "Act"), affecting the South Property(the"South CFD"), and if the South CFD is formed, the special taxes to be levied by the South CFD would to be used to secure bonds expected to be issued by the South CFD, the proceeds of which would, in part, to pay for the South Improvements. 854782.9 19 WHEREAS, North Owner intends to develop the North Property(the"North Development"), and acknowledges that the North Development will require the widening of, and other improvements to, the north side of Gerald Ford Drive along the portion thereof that is contiguous with the North Property (the"North Improvements"). WHEREAS, City desires, in order to minimize traffic interruptions and other construction impacts along the portion of Gerald Ford Drive bordered by the South Property and the North Property, that the South Improvements and the North Improvements be constructed and completed concurrently. WHEREAS, notwithstanding the fact that(a)the NoRh Development is not imminent; (b)a CFD encumbering the North Property(the"North CFD") has not been formed to provide funds to pay for, among other things, the North Improvements; and(c) funds of the South CFD are not, and will not be, available to pay for the North Improvements,North Owner has agreed to pay for the North Improvements and South Owner has agreed to construct the same concurrently, and in connection, with its construction of the South Improvements, upon the terms, and subject to the conditions, set forth herein. AGREEMENT: NQW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and suf ciency of which are hereby acknowledged, the parties hereto agree as follows: 1.Incorporation. The preamble and recitals of, and the exhibits ariached to, this Agreement are hereby incorporated into, and made a part of, this Agreement. 2.Obli;ations of South Owner. South Owner shall: 2.1 Complete the design of, and plans and specification for, the North Improvements and the South Improvements(collectively, the"Improvements") as provided in Section 4. 2.2 Provide North Owner with the opportunity to review and approve the design of, and plans and specifications for,the North Improvements prior to the submission thereof for approval by City. 2.3 Once approved by North Owner in accordance with Section 2.2, which approval shall not be unreasonably withheld, process the design of, and plans and specification for, the Improvements for approval by City and any other applicable governmental entities in order to obtain all permits necessary for the construction of the Improvements(the"Permits"). 2.4 Once the design of, and plans and specifications for, the Improvements have been approved by City and any other applicable governmental entities(the"Improvement Plans") and the Permits have been obtained, provide a copy ofthe Improvement Plans and the Permits to North Owner. xsa A2.9 2 20 2.5 Complete materials to solicit bids from contractors to construct the Improvements in accordance with the Improvement Plans and the Permits(the"Improvement Work"). 2.6 Provide North Owner with the opportunity to review and approve all bid materials for the Improvement Work prior to the issuance thereof. 2.7 Once approved by North Owner, issue all bid materials for the Improvement Work and provide North Owner with a copy of each bid received in response thereto. 2.8 Provide North Owner with the opportunity to review and approve all contracts for the performance of the Improvement Work prior to the execution thereof. 2.9 Once approved by North Owner, execute and enforce all contracts for the performance of the Improvement Work(the"lmprovement Contracts"). 2.10 After the formation of the South CFD by the City Council of City(the"City Council"), but prior to the(a)adoption by the City Council of an ordinance authorizing the levy of special taxes within the South CFD(the"Ordinance") and(b)commencement of the construction of the North Improvements(the"Pre-Ordinance Period"), obtain and deliver(or cause to be obtained and delivered)to City a performance bond (at North Owner's cost and expense as set forth in Section 3.2 and subject to Section 3.4) in the amount of Two Million Dollars($2,000,000) for the constnzction of the North Improvements(the"Performance Bond"), issued by a company and in a form reasonably acceptable to, and for the benefit of, City; provided, however, that after the City Council's adoption of the Ordinance and after the execution of the Improvement Contracts for the construction of the North Improvements, South Owner may obtain and deliver to City, and City shall accept, a replacement performance bond(the"Replacement Performance Bond") issued by a company and in a form reasonably acceptable to, and for the benefit of, City and in an amount equal to the value of the Improvement Contracts for the construction of the North Improvements the"North lmprovements Costs"). Promptly after its receipt of the Replacement Performance Bond, City shall return the Performance Bond to South Owner. In additioq if the South CFD does not issue bonds by December 31, 2006, City shall promptly thereafter return the Performance Bond or the Replacement Performance Bond, as applicable, to South Owner. Promptly after the North Improvements have been completed in a lien-free manner and otherwise in accordance with this Agreement and the "License" (as defined below), City shall return the Performance Bond or the Replacement Performance Bond, as applicable, to South Owner to the extent the same was not used therefor. South Owner and North Owner represent to City that the current estimate of the North Improvements Costs(excluding contingency and management fees) is One Million Four Hundred Forty-Six Thousand Eight Hundred Twenty-One Dollars ($1,446,821) as shown in Exhibit E attached hereto, and that the amount of the Performance Bond is therefore expected to be adequate to cover North Improvements Costs as well contingency and management fees. 2.11 Prior to the commencement of the construction of the North Improvements, deliver to North Owner a Temporary Access and Construction License in substantially the form attached hereto as Exhibit F (the"License"), executed by South Owner. 854782.9 3 21 2.12 Provide North Owner(promptly after South Owner's receipt of the following)with(a) an invoice for the premium for the Performance Bond and Replacement Performance Bond(if applicable); (b) all invoices for the preparation of the lmprovement Plans and issued pursuant to the Improvement Contracts in connection with the design and construction, respectively, ofthe North Improvements; and (c) paid receipts for the Permits obtained for the North Improvements. 2.l3 Complete the Improvement Work within nine(9) months following the later of: (a) issuance of the bonds by the South CFD; or(b) issuance of the Improvement Plans provided, however,that if the issuance of the Improvement Plans is unreasonably delayed by South Owner, then the Improvement Work shall be completed within nine(9) months following the date reasonably determined by City that the Improvement Plans could have been issued but for such unreasonable delay by South Owner). 3.Obli ations of North Owner. North Owner shall: 3.1 During the Pre-Ordinance Period, deliver to City an Irrevocable Offer of Dedication in substantially the form attached hereto as Exhibit G (the "Offer"), executed by North Owner together with either of the following, at North Owner's discretion: (a) from the holder of any monetary lien encumbering the North Property, an executed and acknowledged Consent and Subordination (the form of which is attached to the Offer) for the purpose of subordinating any monetary lien encumbering the North Property, or(b) reasonable assurances from Stewart Title of California, Inc. that title to the property that is subject to the Offer will be conveyed to City free and clear of any monetary liens. Notwithstanding the foregoing, City shall not record or accept the Offer until the issuance of bonds by the South CFD, and City shall promptly and unconditionally return the Offer to North Owner and release North Owner from all obligations thereunder if the South CFD does not issue bonds by December 31, 2006. 3.2 In the event South Owner and/or its contractor for the North Improvements is unable to obtain and deliver the Performance Bond pursuant to Section 2.l0, and South Owner provides written notification to North Owner thereof, deliver, or cause to be delivered, the Performance Bond within a reasonable time following its receipt of such notice. 3.3 Within ten(10)business days after South Owner provides any materials described in Sections 2.2, 2.5 and 2. 7, provide South Owner with a reasonably detailed description of any aspect thereof that is not reasonably acceptable to North Owner(an"Unacceptable Notice"); provided, however, that North Owner shall be deemed to have approved any such materials for which an Unacceptable Notice is not provided and all other aspects of any such materials that are not described in detail in an Unacceptable Notice;provided further, however, that North Owner shall be deemed to have approved any such materials for which an Unacceptable Notice is provided if such materials are revised to eliminate the aspects thereof that were not reasonably acceptable to North Owner as described in detail in the Unacceptable Notice. 3.4 Within twenty(20)business days after South Owner provides an invoice for the preparation of the Improvement Plans in connection with the design of the North Improvements or an invoice for the premium for the Performance Bond, pay the amount thereof directly to the party that issued the same, and provide evidence of such payment to South Owner. 854782.9 4 22 3.5 Within twenty(20)business days after South Owner provides a paid receipt for the Permits obtained for the North Improvements, reimburse South Owner for the amount thereof. 3.6 Reasonably cooperate with South Owner in the process of obtaining the Improvement Plans and the Permits. 3.7 Prior to the commencement of the construction of the North Improvements, deliver to South Owner the License executed by North Owner. 3.8 After(a)the earlier of Closing or March 15, 2006, and(b)North Owner's receipt of the Improvement Contracts, and prior to the commencement of the construction of the North lmprovements, deposit cash or a letter of credit in an amount not less than the North Improvements Cost into the"North Improvements Account" (as defined below), and provide evidence of such deposit to South Owner and City. 4.Improvement Plans. South Owner shall direct RBF Consulting ("RBF") to prepare the design of, and plans and specification for, the Improvements, which shall include the following: (a) engineering plans and specifications; (b) grading plans; (c) drainage plans; d) geology and soils reports; and (e) environmental mitigation and remediation plans, if required by law, regulation or any Governmental authority; provided, however, that North Owner and/or South Owner shall not be required to use its or their, as applicable, property to mitigate or remediate environmental matters occurring on any other property). South Owner shall also direct RBF to prepare a time schedule for the completion of the Improvement Plans and the completion of the Improvement Work based upon the Improvement Plans, which shall include the following: (i)the anticipated date for obtaining the Improvement Plans and the Permits including the anticipated dates for completion and approval of any environmental impact report, assessment or declaration required by law); and (ii) the anticipated date for completion of each major item of construction in connection with the Improvement Work(including the anticipated date for remediation (including re-seeding and re-vegetation) of the South Property and the North Property); provided, however, that the Improvement Plans shall not require any re- seeding, re-revegetation or other landscaping or landscaping-related work north of the northern sidewalk of Gerald Ford Drive. South Owner shall also direct RBF to process modifications of the foregoing in order to incorporate comments from South Owner and North Owner, and other changes required by City, in order to obtain the Improvement Plans and the Permits. 5.Bank Account. South Owner shall open a deposit account with Rabobank in Palm Desert, California(the"North Improvements Account"), into which North Owner shall deposit cash or a letter of credit as provided in Section 3.8. For tax purposes, any interest that accrues on the funds in the North Improvements Account shall be credited to North Owner; provided, however, that any such interest shall remain, and become part of the funds, in the North Improvements Account. The funds in the North Improvements Account shall be used exclusively to pay for the North Improvements; provided, however, that any funds remaining in the North Improvements Account after City accepts the Offer shall be immediately returned to North Owner without the necessity of any other action by any other party. In the event North Owner does not, within twenty 20) business days after receipt from South Owner of an invoice issued pursuant to the Improvement Contracts in connection with the construction of the North Improvements, provide xsa z.9 5 23 South Owner with evidence that it has paid such invoice directly to the party that issued the same from the funds in the North Improvements Account(or otherwise), then South Owner shall have the right to pay such invoice directly to the party that issued the same from the funds in the North Improvements Account. 6.Payment and Reimbursement of Costs. All costs and expenses incurred in connection with the North lmprovements, including the North Improvements Costs, shall be the sole responsibility of North Owner; provided, however, that City acknowledges and agrees that such costs and expenses will be taken into account in the formulation and establishment of the North CFD (the "Reimbursable Costs and Expenses"). 6.1 South Owner shall construct, and North Owner shall permit South Owner to construct, the North Improvements as if they had been constructed under the direction and supervision or under the authority of City. City's acceptance of title to the North Improvements shall be deemed City's acceptance of an advance of a work in-kind pursuant to Section 53314.9 of the Act. To that end, and in connection with the construction of the North Improvements, South Owner agrees to comply with (a) all public bidding and contracting requirements of City as described in Exhibit H attached hereto and California Government Code Sections 3300, 3400, 6109, and 6610; (b) the provisions of California Labor Code Sections 1720, et seq. with respect to the payment of prevailing wages, and (c) all payment bonding requirements of the California Civil Code, including providing a payment bond in conformity with California Civil Code Sections 3247 and 3248 (the"Payment Bonds"). Provided that(i) fifteen (15) days have passed after the later of(l)the expiration of the applicable statutory period in which any person or entity may bring suit against the Payment Bonds as set forth in California Civil Code Sections 3239 or 3249, or(2)the expiration of the applicable statutory period in which any person or entity may record a lien in connection with the North Improvements pursuant to California Civil Code Sections 3115 or 3116, and (ii) no such suit or lien has been filed at such time, City shall deliver to South Owner, promptly after City's receipt of a request from South Owner, a letter confirming that the Payment Bonds are no longer required to be maintained in full force and effect. 6.2 If the North CFD is formed and issues bonds, City shall cause the North CFD to reimburse North Owner for the Reimbursable Costs and Expenses from the proceeds of such bonds that are deposited in a project or construction fund (regardless of the name of such fund), but only to the extent (a) such proceeds are available and (b} the Reimbursable Costs and Expenses are reimbursable therefrom, it being acknowledged and agreed by North Owner and South Owner that the proceeds of bonds issued by the South CFD may not be used to reimburse North Owner for the Reimbursable Costs and Expenses to the extent the same were incurred pursuant to an Improvement Contract with a person or entity affiliated or otherwise related to North Owner or South Owner. Pursuant to Section 53314.9 of the Act, North Owner and South Owner acknowledge and agree that City's agreement to cause the North CFD to reimburse North Owner for the Reimbursable Costs and Expenses pursuant to this Section 6 does not, and shall not, constitute a debt or liability of City. 6.3 Pursuant to Section 53314.9 of the Act, if(a) any funds are advanced by North Owner directly to City for the construction of the North Improvements (the"Advanced Funds") and (b) the qualified electors of the North CFD do not approve (i) the proposed special sa z.y 6 24 tax to be levied within the North CFD or(ii) a change in such special tax required to finance the North Improvements, then City shall return the Advanced Funds to North Owner to the extent the same have not been used by City to pay for the construction of the North Improvements by the time of the corresponding election. Notwithstanding the foregoing, North Owner and South Owner acknowledge and agree that no Advanced Funds are required or contemplated by this Agreement. 7.Insurance. South Owner shall not commence construction of the Improvements until it has provided evidence, in form and substance satisfactory to the City's Risk Manager, that it has secured all insurance required under this section. Prior to the commencement of the construction of the Improvements, and all times while the Improvement Work is being performed, South Owner shall maintain, or cause"Contractor" (as defined below) to maintain, the following insurance: 7.1 Workers' Compensation Insurance—complying with all applicable statutory requirements; and Employers' Liability Insurance— minimum limit of$1,000,000 per occurrence; both coverages to apply to liability as applicable under any state or federal statute or through any common law process. 7.2 Business Automobile Liability Insurance (including owned, non-owned and hired vehicles) — combined bodily/personal injury, death and property damage— minimum limit of$1,000,000 per occurrence. 7.3 Commercial General Liability Insurance (including contractual coverage) combined bodily/personal injury, death and property damage— minimum limit of$2,000,000 per occurrence. 7.4 Professional Liability Insurance—errors and omissions liability insurance to be procured and maintained by RBF and any other engineers or design professionals with respect to the Improvement Work, for a period of five(5)years following completion of the applicable Improvement Contract—minimum limit of$1,000,000 per occurrence. 7.5 All policies of insurance obtained pursuant to this Section 7 shall (a) be issued by a company authorized to do business in the State of California with a minimum "Best's Insurance Guide rating of"A-:VI;" (b) name North Owner as an additional insured; (c) name City and the South CFD as additional insureds, and, if obtainable after the South Owner's use of commercially reasonable efforts, the respective consultants of City and the South CFD, and each of their directors, boardmembers, councilmembers, officers, officials, employees, agents, and volunteers (including independent contractors who serve as City's or South CFD's officer or officials) (collectively, the "City Personnel") as additional insureds; (d) provide that the insurance therein is primary and not in excess of, or contributory with, other insurance held by North Owner and/or City; (e) include an endorsement to City eliminating any deductibles or self- insured retentions relating to City, the South CFD, and, if named as additional insureds pursuant to Section 7.5(c), City Personnel; ( contain a waiver of subrogation in favor City, the South CFD, and, if named as additional insureds pursuant to Section 7.5(c), City Personnel, with respect to coverage for workers' compensation and employers' liability; (g) contain a provision providing that such insurance shall not be suspended, voided, reduced, materially changed, or 854782.9 25 cancelled without thirty (30) days' prior written notice by certified mail, return receipt requested, to North Owner, City, and the South CFD; and (h) contain a provision providing that any failure to comply with reporting or other provisions of the policy, including breaches of warranties, shall not affect coverage provided to City, the South CFD, and, if named as additional insureds pursuant to Section 7.5(c), City Personnel; provided, if after the use of commercially reasonable efforts, South Owner is not able to obtain a policy of insurance required hereunder naming the City Personnel as additional insureds, upon City's request, South Owner shall provide City with documentation satisfactory to the City's Risk Manager evidencing South Owner's efforts to obtain the same. 8.Indemnitv. South Owner agrees to indemnify, defend (with counsel reasonably approved by North Owner, City and the South CFD, as applicable) and hold harmless North Owner and its members, partners and their members, partners shareholders, partners, officers, employees and agents (collectively, the"North Owner Parties") and City, the South CFD, and their respective consultants, and each of their directors, boardmembers, councilmembers, officers, officials, employees, agents, and volunteers (including independent contractors who serve as City's or South CFD's officer or o icials) (collectively, the"City Indemnified Parties"), from any claim, cause of action, demand, cost, expense, loss, damage, penalty or fine incurred in connection with the Improvement Work andlor arising from the obligations of South Owner hereunder, except to the extent that the same are caused by the gross negligence or willful misconduct of the North Owner Parties or the City Indemnified Parties. North Owner agrees to indemnify, defend (with counsel reasonably approved by City and the South CFD, as applicable) and hold harmless the City Indemnified Parties, from any claim, cause of action, demand, cost, expense, loss, damage, penalty or fine arising solely from the failure of North Owner to perform, wholly or in part, its obligations hereunder, except to the extent that the same are caused by the gross negligence or willful misconduct of the City Indemnified Parties. The foregoing indemnification obligations shall survive until such time as all such potential claims, causes of action, demands, costs, expenses, losses, damages, penalties or fines shall have been barred by applicable statutes of limitations. 9.No Obligation to Form South CFD or North CFD. North Owner and South Owner acknowledge and agree that the decisions of the City Council to form the South CFD and/or the North CFD, to include any particular improvement or facility among the improvements and facilities to be financed by the South CFD or the North CFD, or to cause the South CFD or the North CFD to issue bonds, is a legislative action, and City may not enter into an agreement to obligate the City Council to exercise its legislative discretion in a particular manner or for a particular result. This Agreement does not, therefore, in any way create a contractual, legal or equitable obligation of, or commitment by, City to approve the formation of the South CFD and/or the North CFD, to cause the South CFD or the North CFD to issue bonds, or to construct, or cause the construction of, any improvements or facilities, including the Improvements. Nothing contained herein shall be deemed to limit the discretion of City in that regard, and City shall have no liability to South Owner or North Owner if the South CFD or the North CFD is not formed, if the special taxes or bonds thereof are not authorized by the qualified electors within the South CFD or the North CFD or if bonds are not issued by the South CFD or the North CFD. 8547829 g 26 10. Miscellaneous. 10.1 Term. This Agreement shall automatically terminate upon the earlier of a)the third (3` d) anniversary of the date hereof or(b)within 30 days after the completion of the Improvement Work as such completion may be evidenced by, among other things, a Notice of Completion from the City. 10.2 Successors and Assi. This Agreement shall bind and inure to the benefit of the parties and their respective successors and assigns; provided, however, that South Owner shall not have the right to assign its rights or obligations hereunder without the consent of North Owner, which shall not be unreasonably withheld, delayed or conditioned; provided further, however, that South Owner may, without the consent of North Owner, hire one or more third-party contractors to perform all or a portion of the Improvement Work ("Contractor"). North Owner and South Owner acknowledge that City is a party to this Agreement and agree that as such, City shall have the right to enforce the rights and obligations of North Owner and South Owner hereunder. 10.3 Notices. Any notice, request, direction, demand, consent, waiver, approval or other communication required or permitted to be given hereunder shall not be effective unless it is given in writing and shall be delivered (a) in person, (b) by certified mail, postage prepaid, return receipt requested, (c)by facsimile, or(d)by a commercial overnight courier that guarantees next day delivery and provides a receipt, and addressed to the parties at the addresses stated below, or at such other address as either party may hereafter notify the other in writing as aforementioned: To North Owner: Palm Desert North 80, LLC 5005 Calle San Raphael, Suite B-1 Palm Springs, California 92264 Attention: Mr. Michael Marix Facsimile: (760) 778-4417 With a copy to:Reed Smith LLP 355 South Grand Avenue, Suite 2900 Los Angeles, California 90071 Attention: Thomas L. Harnsberger, Esq. Facsimile: (213) 457-8080 To South Owner: Palm Desert Funding Company, LLC c/o Hover Development Company, Inc. 3 Civic Plaza, Suite 215 Newport Beach, California 92660 Attention: Mr. Tom Hover Facsimile: (949) 644-7620 854782.9 27 With a copy to:Law Offices of Kent G. Snyder 2212 Dupont Drive, Suite B Irvine, California 92612 Attention: Kent G. Snyder, Esq. Facsimile: (949) 833-8209 To City: City of Palm Desert 73510 Fred Waring Drive Palm Desert, California 92260 Attention: City Manager Facsimile: With a copy to: Richards, Watson & Gershon 355 South Grand Avenue, 40'Floor Los Angeles, California 90071-3101 Attention: Owen P. Gross, Esq. Facsimile: (213) 626-0078 Service of any such notice or other communications so made shall be deemed effective on the day of actual delivery(whether accepted or refused)as evidenced by confirmed answerback if by facsimile (provided that if any notice or other communication to be delivered by facsimile is unable to be transmitted because of a problem affecting the receiving party's facsimile machine, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received)or on a non business day, then such notice or demand so made shall be deemed effective on the first business day following the day of actual delivery. No communications via electronic mail shall be effective to give any notice, request, direction, demand, consent, waiver, approval or other communications hereunder. 10.4 Interpretation. All section headings are inserted for convenience only and shall have no effect on the construction or interpretation of this Agreement. The neuter gender includes the feminine and masculine, and singular numbers include plural numbers. Each party acknowledges that such party and its counsel, after negotiation and consultation, have reviewed and revised this Agreement. As such, the terms of this Agreement shall be fairly construed and the usual rule of construction, to the effect that any ambiguities herein should be resolved against the drafting party, shall not be employed in the interpretation of this Agreement. The words shall" and "will" are interchangeable, each imposing a mandatory obligation on the party to whom such verb applies. The words"herein," "hereof," "hereunder," "hereby," "this Agreement" and other similar references shall be construed to mean and include this Agreement and all amendments and supplements hereto unless the context shall clearly indicate or require otherwise. Whenever the words "including," "include" or"includes" are used in this Agreement, they shall be interpreted in a non-exclusive manner. Except as otherwise indicated, all exhibit and section references in this Agreement shall be deemed to refer to the exhibits of and sections in this Agreement. 8547A2.9 10 28 10.5 Partial Invaliditv. Each and every provision of this Agreement is, and shall be construed to be, a separate and independent covenant and agreement. If any provision of this Agreement, or the application thereof, shall to any extent be held to be invalid or unenforceable, the remainder of this Agreement, or the application of such provision to circumstances other than those to which it is invalid or unenforceable, shall not be affected hereby, and each provision of this Agreement shall be valid and shall be enforced to the extent permitted by law. 10.6 A nlicable Law; Attorne,L' Fees. The laws of the State of California shall govern the interpretation and enforcement of this Agreement. Should a legal action be brought by a party by reason of a default hereunder or to enforce any provision hereof, the prevailing party in such action shall be entitled to reasonable attorneys' fees, court costs, and other litigation expenses including expenses incurred for preparation and discovery. The entitlement to recover such fees, costs and expenses shall accrue upon the commencement of the action regardless of whether the action is prosecuted to final judgment. 10.7 Further Assurances. The parties shall execute and deliver any and all additional documents and other assurances, and shall do any and all other acts and things, reasonably necessary to carry out the purposes of, and the intent of the parties under, this Agreement. 10.8 Modifications. All modifications of, or amendments to, this Agreement shall be in writing and signed by the parties. 10.9 Prior Agreements. This Agreement contains all of the agreements of the parties with respect to the transaction contemplated hereby, and no prior agreements, including that certain Road Improvement Agreement dated October 3, 2005, executed by South Owner and North Owner(which shall be deemed terminated and of no further force or effect and otherwise superseded in its entirety by this Agreement), or understandings pertaining to any such transaction shall be effective for any purpose. 10.10 Counterparts. This Agreement may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, taken together, shall be deemed to be one and the same instrument. 10.11 Arbitration of Disputes. ANY DISPUTE UNDER THIS AGREEMENT SHALL BE BROUGHT 1N RIVERSIDE COUNTY, CALIFORNIA, AND SHALL BE DECIDED BY BTNDING ARBITRATION IN ACCORDANCE WITH THE ARBITRATION RULES OF THE JUDICIAL ARBITRATION AND MEDIATION SERVICES ("JAMS") BEFORE AN ARBITRATOR SELECTED FROM THE RETIRED JUDGES PANEL OF THE ARBITRATORS OF JAMS. IN ADDITION TO THE JAMS RULES, THE PARTIES AGREE THAT THIS AGREEMENT SHALL BE SUBJECT TO THE DISCOVERY PROVISIONS OF THE CALIFORNIA CODE OF CIVIL PROCEDURE ("CCP"), INCLUDING CCP SECTION 1283.05. THE FEE PAYABLE TO JAMS TO INITIATE THE ARBITRATION SHALL BE REMITTED BY THE REQUESTING PARTY; PROVIDED, HOWEVER, THAT THE COSTS OF ARBITRATION SHALL ULTIMATELY BE BORNE AS DETERMINED BY THE ARBITRATOR. THE PARTIES AGREE THAT THE DETERMINATION OF THE 8547A2.9 1 ] 29 ARBITRATOR AND AWARD, IF ANY, MAY BE ENTERED WITH ANY COURT HAVING JURISDICTION AND THE DETERMINATION AND AWARD, IF ANY, MAY THEN BE ENFORCED AMONG THE PARTIES, WITHOUT FURTHER EVIDENTIARY PROCEEDINGS, AS IF ENTERED BY A COURT AT THE CONCLUSION OF A JUDICIAL PROCEEDING IN WHICH NO APPEAL WAS TAKEN. NOTICE: BY 1NITIALING 1N THE SPACE BELOW THE PARTIES ARE AGREEING TO HAVE ANY DISPUTE UNDER THIS AGREEMENT DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND THE PARTIES ARE GIVING UP ANY RIGHTS THEY MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED 1N A COURT OR JURY TRIAL. BY INITIALING 1N THE SPACE BELOW THE PARTIES ARE GIVING UP THEIR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS SUCH RIGHTS ARE SPECIFICALLY INCLUDED 1N THIS AGREEMENT. IF A PARTY REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, SUCH PARTY MAY BE COMI'ELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CCP. THE PARTIES AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. THE PARTIES HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES A UNDER THIS AGREEMENT TO NEUTRAL ARBITRATION BY PLACING THEIR INITIALS HERE: South North City Owner Owner This Space Intentionally Left Blank; Signatures Begin On The Next Page] 854782.9 12 30 IN WITNESS WHEREOF, the parties hereto have executed this Road Improvement Agreement as of the date first written above. SOUTH OWNER: PALM DESERT FUNDING COMPANY, L.P., a Delaware limited partnership By: Palm Desert Funding Company, LLC, a Delaware limited liability company, its General Partner By: Palm Desert Funding Company, Inc., a Delaware corporation, its Manager By: Thomas I. Hover, Authorized Agent NORTH QWNER: PALM DESERT NORTH 80, LLC, a California limited liability company By: Comerstone Desert Properties I, LLC, a California limited liability company, its Manager. By: Marix Family Limited Partnership, a Delawaze limited Partnership, its Manager By: Marix Family Trust U/D/T dated as of October 12, 2002, as amended, its General Partner By: Michael S. Marix, Trustee Si natures Continue On The Next Page] 854782.9 13 31 Signatures Continued From The Previous Page] CITY: CITY OF PALM DESERT, a California municipal corporation By: Name: Its: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney xs4 xz.y 14 32 EXHIBIT A DEPICTION OF SOUTH PROPERTY See Attached) Asa g2.y A-1 33 T. EXCEPT[ON PCL U i w 1 I I z Q 3 , nI 4 r-----`1 i J 5 I w n I 6 o N/Q/ P6RCe Ac.9 Z 'i R,- e i39' zi . o, E r J 0 9 I P.M. N0. f 31730 AST-I ST QUARTER P.M.B. 2 6'3 75 28 SECTIAV LIl` i 11 0.,y F.i ag i 12 0/ J 3 ;Q ,, -,-- ' - M 14 ? 15 C'. n i a/Q' J .1 o Q o EXCEPTION PARCEL ti6°`, o `V 171.798 AC.i G' l i 17 y ye A PARCEL 15 r- -i r'i G• 19 11.459 AC. 20 J7'i/e ' 21 e i V t18 Z s 0 2` 2 l 2za : '3 o e,"`N _. 50' a G N53ry6? 25 o m Lf C/L COLLECE DRlVF. 27 SECTlLW 33 26 0 g S89'SO'06"W 31J2.42' o i P.O.C C/L FRA.NK SIN tTRA DRIVE sw coR. SEC. 33 LXI IlB T Bn SNEET 1 OF 2 SHEETS rLANNINO i DEBfON CONSTRUCTION u PLAT TO ACCOMPANY A LEGAL DESCRIPTfON OF ADJUSTED PARCELS 9 ANO t 5 OF a-a o wc r+war m o PALM pE3ff1T,CALPORNA 92260-4114 i PARCEL MAP 3 i 73Q C O N 8 U LTI N G Bosas.ae • FAX 780.3A8.8915 • .,..m DATE: Al1GlJS7 2, 2005 JN: 2-100376-04 r 34 DATA TABLE O BEARING/DELTA RADIUS LENGTH 1 N89°54'28"E 311 . 19' 2 15`06'33" 1013.00' 267. 13' 3 S15° 12'05"E 95.73' a S32°0 '27"E 138.08' 5 37°44'05"E 373.26' 6 31 ° 12' 18"536.00' 291 .92' 7 S68'S6'23"E 69.74' 8 48°23'S7"534,00' 451 .08' 9 06° 12'44"866.00' 93.89' 10 ' S41°55'34"E 49.31 ' 11 S38°47'30"E 498.31 ' 12 S46°52' 11 "E 259.34' 13 14°50'S5" ^ 866.OQ' 224.43' 14 43°08'03"434.00' 326.73' 15 62' 16' 13" 50.Q0' 54.34' 16 36°52'42"484.00' 311 .53' 17 07°32'48" 1266.00' 166.75' 18 S42° 13'UO"E 186. 14' 19 07`OS'33" 1066.00' 131 .96' 20 S25°Ot 'S6"E 74.98' 21 S31 °06'49"E 61 .06' 22 27°47'21"154.Q0' 74.69' i 23 S58°Sa' 10"E 106 .28' 24 S53° 16 24"E 182, 10' 25 36°53'3fl"600.00' 38fi.33' 26 S00°d9'S4"E 206.89'E 27 N45'OS'22"W 32.55' 2$ S89°51 ' i2"W 50.00' o m K 0 0 t a s n XHIB I B SHEET 2 OF 2 SHEETS % PLANNINO DE910N CONBTRUCTION q PLA7 TO ACCOMPANY A LEGAL DESCRlP7lON OF ADJlJSTED 74-410 HC M1VAY 111 0 PARCELS 9 AND 15 OF pp,,)p gEF T,CALFORt EA 92260-4114 PARCEL MAP 31730 C O N S U LTI IV G eo.aae.4a • FA%780,946.6315 - ., DATE: AUGUST 2, 2005 JN: 20-100376-04 z 35 EXHIBIT B LEGAL DESCRIPTION OF SOUTH PROPERTY THAT CERTAIN PORTION OF LAND SITUATED IN TI CITY OF PALM DE5ERT, BEING ALL OF PARCEL 9 OF PARCEL MAP NO. 31730, FILED IN BOOK 211 PAGES 63 THROUGH 75, OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; TOGETHER WITH ALL OF THAT LAND DESCRIBED IN A GRANT DEED TO THE PALM DESERT REDEVELOPMENT AGENCY RECORDED DECEMBER 9, 2002 AS INSTRUMENT NO. 02-734132 OF OFFICIAL RECORDS OF RIVERSIDE COLTNTY, CALIFORNIA; EXCEPTING THEREFROM THE FOLLOWING DESCRIBED PORTION OF LAND: THAT CERTAIN PORTION OF LAND SITUATED IN THE CITY OF PALM DESERT, BE1NG PORTIONS OF PARCELS 1, 2, 3 AND 5 AND ALL OF PARCEL 4 OF CERTIFICATE OF COMPLIANCE FOR PARCEL MAP WAIVER, P.M.W. NO. 99-11, RECORDED JANUARY 4, 2000 AS INSTRUMENT NO. 00-002896 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTERLINE 1NTERSECTION OF FRANK SINATRA DRIVE AND PORTOLA AVENUE, BE1NG THE SOUTHWEST CORNER OF SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN; THENCE NORTH 00°OS'32" WEST 3664.39 FEET ALONG THE CENTERLINE OF PORTOLA AVENUE, SAID LTNE ALSO BEING THE WEST LINE OF SAID SECTION 33, TO THE TRUE POINT OF BEGINMNG; TI NCE LEAVING SAID CENTERLINE AND WEST L1NE NORTH 89°54'28" EAST 311.19 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 1013 FEET; THENCE ALONG SAID CURVE EASTERLY 267.13 FEET THROUGH A CENTRAL ANGLE OF 15°06'33"; THENCE RADIALLY FROM SAID CURVE SOUTH 15°12'OS" EAST 95.73 FEET; THENCE SOUTH 32°Ol'27" EAST 138.08 FEET; THENCE SOUTH 37°44'OS" EAST 373.26 FEET TO THE BEGiNN1NG OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 536 FEET; THENCE ALONG SAID CURVE SOUTHEASTERLY 291.92 FEET THROUGH A CENTRAL ANGLE OF 31°12'18"; THENCE TANGENT FROM SAID CURVE SOUTH 68°56'23" EAST 69.74 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 534 FEET, A RADIAL L1NE OF SAID CURVE FROM SAID PO1NT BEARS NORTH 80°00'S6" EAST; THENCE ALONG SAID CURVE SOUTHEASTERLY 451.08 FEET THROUGH A CENTRAL ANGLE OF 48°23'S7" TO A POINT OF REVERSE CURVATURE W1TH A CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 866 FEET, A RADIAL LINE OF SAID CURVE FROM SA1D POINT BEARS SOUTH 31°36'S9" WEST; THENCE ALONG SAID CURVE SOUTHEASTERLY 93.89 FEET THROUGH A CENTRAL ANGLE OF 06°12'44"; THENCE NON-TANGENT FROM SAID CURVE SOUTH 41°55'34" EAST 49.31 FEET; TI NCE SOUTH 38°47'30" EAST 854782.9 B-] 36 498.31 FEET; THENCE SOUTH 46°52'11" EAST 259.34 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 866 FEET; THENCE ALONG SAID CURVE SOUTHEASTERLY 224.43 FEET THROUGH A CENTRAL ANGLE OF 14°50'S5" TO A POINT OF REVERSE CURVATURE WITH A CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 434 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS NORTH 57°58'44" EAST; THENCE ALONG SAID CURVE SOUTHEASTERLY 326.73 FEET THROUGH A CENTRAI, ANGLE OF 43°08'03" TO A POINT OF REVERSE CURVATURE WITH A CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 50 FEET, A RADIAL LINE OF SAID CURVE FROM SAID PO1NT BEARS SOUTH 14°50'41" WEST; THENCE ALONG SAID CURVE SOUTHEASTERLY 54.34 FEET THROUGH A CENTRAL ANGLE OF 62°16'13" TO A PO1NT OF REVERSE CURVATURE WITH A CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 484 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS NORTH 77°06'S4" EAST; THENCE ALONG SAID CURVE SOUTHEASTERLY 311.53 FEET THROUGH CENTRAL ANGLE OF 36°52'42" TO A POINT OF REVERSE CURVATURE WITH A CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1266 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS SOUTH 40°14'12" WEST; THENCE ALONG SAID CURVE SOUTHEASTERLY 166.75 FEET THROUGH A CENTRAL ANGLE OF 07°32'48"; THENCE TANGENT FROM SAID CURVE SOUTH 42°l3'00" EAST 186.14 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1066 FEET; THENCE ALONG SAID CURVE SOUTHEASTERLY 131.96 FEET THROUGH A CENTRAL ANGLE OF 07°OS'33", THENCE NON-TANGENT FROM SA1D CURVE SOUTH 25°O1'S5 EAST 74.98 FEET; THENCE SOUTH 31°06'49" EAST 61.06 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 154 FEET; THENCE ALONG SAID CURVE SOUTHEASTERLY 74.69 FEET THROUGH A CENTRAL ANGLE OF 27°47'21" THENCE TANGENT FROM SAID CURVE SOUTH 58°54'10" EAST 106.28 FEET; T'HENCE SOUTH S3°16'24" EAST 182.10 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 600 FEET, A RADIAL LINE SAID CURVE FROM SAID POINT BEARS SOUTH 53°16'24" EAST, SA1L POINT ALSO BEING ON THE CENTERLINE OF COLLEGE DRIVE AS SHOWN ON AFOREMENTIONED PARCEL MAP 31730; THENCE ALONG SAID CENTERLINE OF COLLEGE DRIVE THROUGH THE FOLLOWING COURSES: SOUTHERLY ALONG LAST SAID CURVE, 386.33 FEET THROUGH A CENTRAL ANGLE OF 36°53'30"; THENCE TANGENT FROM SAID CURVE, SOUTH 00°09'S4" EAST 296.89 FEET TO A POINT ON A LINE BEING PARALLEL WITH AND 50 FEET NORTHERLY FROM THE CENTERLINE OF SA1D FRANK SINATRA DRIVE; THENCE LEAVING SAID CENTERLINE OF COLLEGE DRIVE, ALONG SAID PARALLEL LINE SOUTH 89°50'06" WEST 3132.42 FEET; THENCE LEAVING SAID PARALLEL LINE, NORTH 45°08'22" WEST 32.55 FEET TO A POINT ON THE EASTERLY RIGHT(S) OF WAY LINE OF PORTOLA AVENUE, SA1D LINE BE1NG PARALLEL WITH AND 50 FEET EASTERLY FROM THE CENTERLINE OF SAID PORTOLA AVENUE; THENCE ALONG SAID PARALLEL LINE NORTH 00°OS'32" WEST 2591.58 FEET TO THE EAST-WEST QUARTER SECTION LINE OF SA1D SECTION 33; THENCE LEAVING SAID PARALLEL LINE SOUTH 89°51'12" WEST 50 FEET ALONG SAID QUARTER SECTION L1NE TO THE WEST QUARTER CORNER OF SAID 854782.9 B-2 37 SECTION 33, SAID POINT ALSO BEING ON THE CENTERLINE OF SAID PORTOLA AVENUE; THENCE ALONG SAID WEST LINE OF SECTION 33 AND SAID CENTERLINE OF PORTOLA AVENUE, NORTH 00°OS'32" WEST 999.77 FEET TO THE POINT OF BEGINNING. SA1D PROPERTY IS ALSO SHOWN AND SET FORTH AS EXHIBIT A, IN THAT CERTAIN CERTIFICATE OF COMPLIANCE NO. OS-01, RECORDED AUGUST 24, 2005 AS INSTRLTMENT NO. OS-696754 OF OFFICIAL RECORDS. PARCEL 15 OF PARCEL MAP NO. 31730, AS SHOWN BY MAP ON FILE 1N BOOK 211 PAGES 63 THROUGH 75, OF PARCEL MAPS, RECORDS OF RIVERSIDE COLTNTY, CALIFORNIA. s4 x2. B-3 38 EXFIIBIT C DEPICTION OF NORTH PROPERTY See Attached) 854782.9 C-1 39 z f SCALE . 1=4CC l I Z] I Ili iL_; v i T' y n I i p I O p ti nw8,, D `O W 7 J .T] W\ ia S5, „w I iI D i I n i i r i , 0 w 0 i x D 1I i s. s, L O 2ob.3a A U An gooh ow gi' 4 N o a ZmC v Z• go U I _'__..., _ _..._ .. . . _... ,N u o s , _ y , 40 EXHIBIT D LEGAL DESCRIPTION OF NORTH PROPERTY The land referred to herein is situated in the State of California, County of Riverside, City of PALM DESERT, described as follows: PARCEL B: 1N THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING A PORTION OF PARCEL 6 OF PARCEL MAP WAIVER 01-28, CERTIFICATE OF COMPLIANCE RECORDED SEPTEMBER 7, 2001 AS 1NSTRLJMENT NO. 01-435770 OF OFFICIAL RECORDS, ALSO BEING IN THE SOUTH HALF OF SECTION 28 AND THE NORTH HALF OF SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT TE-IE I 10RTHWEST CORNER OF SAID PARCEL 6, SAID CORNER ALSO BEING THE WEST QUARTER CORNER OF SAID SECTION 28; THENCE SOUTH 00°16'S9" EAST ALONG THE WESTERLY LINE OF THE SOUTHWEST QUARTER OF SA1D SECTION 28, A DISTANCE OF 1576.95 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 89°43'O1" EAST, A DISTANCE OF 680.87 FEET TO THE BEGINNING OF A 564 FOOT TANGENT CURVE, C NCAVE TO THE SOUTH; THENCE EASTERLY ALONG SAID CURVE, THROUGH A CENTRAI. ANGLE OF 35°44'37", AN ARC DISTANCE OF 351.85 FEET; THENCE TANGENT TO SAID CURVE, SOUTH 54°32'22" EAST, A DISTANCE OF 778.97 FEET; THENCE SOUTH, A DISTANCE OF 437.37 FEET; THENCE SOUTH 47°20'S5" WEST, A DISTANCE OF 33.95 FEET; THENCE NORTH 89°56'08" EAST, A DISTANCE OF 122 FEET; THENCE NORTH 47°25'23" WEST A DISTANCE OF 33.99 FEET; THENCE NORTH, A DISTANCE OF 445.70 FEET TO THE BEGINNING OF A 264 FOOT TANGENT CURVE, CONCAVE TO THE EAST; THENCE NORTHERLY, ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 35°27'38", AN ARC DISTANCE OF 163.39 FEET; THENCE TANGENT TO SAID CURVE, NORTH 35°27'38" EAST, A DISTANCE OF 161.17 FEET; THENCE NORTH 80°27'38" EAST, A DISTANCE OF 35.36 FEET; THENCE SOUTH 54°32'22" EAST, A DISTANCE OF 162 FEET; THENCE SOUTH 56°26'S5" EAST, A DISTANCE OF 360.20 FEET; THENCE ALONG A LINE PARALLEL OR CONCENTRIC WITH AND 72 FEET SOUTHWESTERLY AND WESTERLY (MEASURED PERPENDICULAR TO OR RADIALLY) OF THE SOUTHWESTERLY AND WESTERLY LINE OF PARCEL 5 OF SAID PARCEL MAP WAIVER 01-28, TE-IE FOLLOWING 3 COURSES: l.SOUTH 54°32'22" EAST A DISTANCE OF 2149.72 FEET TO THE BEGINNING OF A 264 FOOT TANGENT CURVE, CONCAVE TO THE SOUTHWEST; xsa xz.9 D-1 41 2.THENCE SOUTI ASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 63°49'20" AN ARC DISTANCE OF 294.07 FEET TO THE BEGINNING OF A 1682 FOOT REVERSE CURVE, CONCAVE TO THE EAST, A RADIAL TO SAID BEGINNING BEARS NORTH 80°43'02" WEST; 3.THENCE SOUTHERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 12°59'30", AN ARC DISTANCE OF 381.39 FEET, TO THE BEGINNING OF A 264 FOOT REVERSE CURVE, CONCAVE TO THE NORTHWEST A RADIAL TO SAID BEGINNING BEARS NORTH 86°17'28" EAST, SAID BEGINNING ALSO BEING ON THE WESTERLY LTNE OF TECHNOLOGY DRIVE RIGHT OF WAY DESCRIBED IN DOCUMENT NO. 00-5 l 9849 RECORDED DECEMBER 29, 2000 OF OFFICIAL RECORDS; THENCE SOUTHWESTERLY ALONG SAID CURVE AND SAID WESTERLY LINE, THROUGH A CENTRAL ANGLE OF 83°20'31", AN ARC DISTANCE OF 384.01 FEET, TO THE BEGINNING OF A 336 FOOT REVERSE CURVE, CONCAVE TO THE SOUTHEAST A RADIAL TO SAID BEGINNING BEARS NORTH 10°22'O1" WEST; THENCE SOUTHWESTERLY ALONG SA1D CURVE AND CONTINUING ALONG SAID WESTERLY L1NE, THROUGH A CENTRAL ANGLE OF 56°50'25" AN ARC DISTANCE OF 333.33 FEET; THENCE TANGENT TO SAID CURVE AND ALONG SAID WESTERLY LINE, SOUTH 22°47'34", A DISTANCE OF 117.79 FEET TO A PO1NT ON THE NORTHEASTERLY LINE OF GERALD FORD DRIVE, 110 FEET WIDE, AS DESCRIBED 1N TNSTRUMENT NO. 238527, RECORDED JLT[,Y 8, 1997 OF OFFICIAL RECORDS, AND TO THE BEGTNNING OF A 945 FOOT NON-TANGENT CURVE CONCAVE TO THE NORTHEAST A RADIAL TO SAID BEGINNING BEARS SOUTH 24°58'33" WEST. THE FOLLOWING 7 COURSES ARE ALONG THE NORTHEASTERLY AND NORTHERLY LINES OF GERALD FORD DRIVE: 1.THENCE NORTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 67°17'S6" AN ARC DISTANCE OF 1109.98 FEET TO THE BEGINNING OF A 1055 FOOT REVERSE CURVE, CONCAVE TO THE SOUTHWEST A RADIAL TO SAID BEGINNING BEARS SOUTH 87°43'31" EAST; 2.THENCE NORTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 92°20'21", AN ARC DISTANCE OF 1700.26 FEET; 3.THENCE TANGENT TO SA1D CURVE, SOUTH 89°56'08" WEST, A DISTANCE OF 1615.27 FEET; 4.THENCE NORTH 85°06'40" WEST, A DISTANCE OF 150.56 FEET; 5.THENCE SOUTH 89°56'08" WEST, A DISTANCE OF 200 FEET; 6.THENCE NORTH 45°10'31" WEST, A DISTANCE OF 32.46 FEET; 7.THENCE SOUTH 89°43'O1" WEST, A DISTANCE OF 23 FEET TO A PO1NT ON A LINE PARALLEL WITH AND 39 FEET EASTERLY OF THE WESTERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 28; THENCE SOUTH 00°16'S9" EAST s4 x2.y D-2 42 ALONG SAID PARALLEL LINE, A DISTANCE OF 90.82 FEET TO A PO1NT OF INTERSECTION OF THE NORTHERLY LINE OF THE NORTHWEST QUARTER OF SAID SECTiON 33, AND A L1NE PARALLEL WITH AND 39 FEET EASTERLY OF THE WESTERLY LTNE OF SA1D NORTHWEST QUARTER; THENCE SOUTH 00°OS'38" EAST ALONG LAST SAID PARALLEL LINE, A DISTANCE OF 329.01 FEET TO A POINT ON A LINE PARALLEL WITH AND 329.01 FEET SOUTHERLY OF SAID NORTHERLY LINE OF SAID NORTHWEST QUARTER; THENCE SOUTH 89°56"08" WEST ALONG LAST SAID PARALLEL L1NE, A DISTANCE OF 39 FEET TO A POINT ON SAID WESTERLY LiNE OF THE NORTHWEST QUARTER; THENCE NORTH 00°OS'38" WEST ALONG SAID WESTERLY LINE TO THE SOUTHWEST CORNER OF SA1D SECTION 28, A DISTANCE OF 329.01 FEET; THENCE NORTH 00°16'S9" WEST ALONG THE WESTERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 28, A DISTANCE OF 1084.36 FEET TO THE TRUE POINT OF BEGINNING. End of Legal Description xsa x2. D-3 43 EXHIBIT E COST ESTIMATE See Attached) xsa x2.y E-] 44 1'0(03/2005 17:19 9496447620 HOVER DEVELOPMENT PAGE 13115 ESTIMATE FOR NORTH LJI IIVERSITY PARK-COST AREA "B" PROJECT: TGNTATIVE PARCEL#30042 JN: 20-100551 PREPARED BY: HU DATE 0912B105 North Side oi Gerald Ford DFSCR'['[ON COST UTII.TI'fES SO EAR1'IIWORK SO STREBT QvIPROVEIvt'NTS 5660,380 STORM DRAW SO SELVER SYS7'EM SO WATER SYSTEM SO I.A2IDSCAPIIYG 560,000 TRAFF7C SIGNAIS 5230,000 C17'Y FEES z47,519 CONSLJL.TANTS S 142,557 CONTQdO S(0) 30 PRfiVAII.QJC3 WAGE(1 S°.6) 99,057 GEAIF:RAL CONTRACTOR FES(I S%) 185,927 MANAGEMbTTf FEE(0°) 0 BaND FEE(1.5°/.) 21,362 TOTAL DEVELOPMENf COST 51,446,s21 NOTE No contingency inclndcd No msmgemeut fee iacluded I.QRd9tY lt Ib mt AR OY1Y PnEe 1 Received at RWG Law: 10/3/2005 5:20:32 PM 45 1'Q/03/2005 17:19 9496447620 HOVER DEVELDPMENT PAGE 14/15 DESCRIPT'[ON UNIT QUANTITY U IIT PRICE . TOTAL C05T SfREET IMPROVEMLMS GEXALD FORD DR.IVE(Il2 STREE7'J FROM T CHNOLOGYARIYE TO MB?ROPLEX ROUGFi Gl2ADING(L.5'CUT) CY 4,000 15.00 60,000 FII IE GRnDE SF 71,000 0.20 14,200 8"CURD&GUTIFR LF 3,140 515.00 47,100 8•CURB LF 2,750 S15,00 41,230 8'SIDEWAI.K SF I2,200 5215 33,550 SIGNIIJG AND STRIPING LS 1 L0,000.00 10,000 PEDES"PRlAN RAMI'S Fr 1 51,200.00 1,200 5'AC OVER 10"BASE SF 71,000 52.30 163,300 2.5"AC OVER NATIVE SF 0 S1.10 SAN CtTT I.F 2,500 54.00 10,000 CI3 NO.1-RCPC&WCD EA 1 8,000.00 8,0(IU LACAL DEPRFSSION EA l 200.00 200 1 S"FfDPE PJPE LF 40 50.00 2,000 qp •Cy Ip 70.00 700 BASIN GRADING CY 3,000 15.00 43,000 GERALD FOlil)SIIBTOTAL S436,500 GL•RALD FORD DXI[E(1/'157RL E7)FROM METROPLEX TO PO TOL!AVENUE ROUGH GRADINO(1.S C[T1 CY 1,600 i5.00 27,OOU tI[JE GRADB SF 32,110 0.20 6,422 8"CLJRB 8c GUI'!'GR LF 1,440 S 13.00 19,370 g.g j,F 1,260 513.00 16,380 8'SIDCWALlC SF 0 52.73 0 PEDESTRIAN RAMPS EA L 51,200.00 1,.'l00 SIGNlNG AND STRIPINO LS 1 4,000.00 4,Ooo 5"AC OVER 10"BASE SF 32,110 SZ.25 72,24A 2.5"AC OVER NA77VE SF 0 E1.10 5AW CUT LP 3 340 54.00 2I,360 CU N0.1-RCFC&WCD EA 1 8,000.00 8,000 LOCAI.DEPRESSION EA 1 200.00 2110 l8"HDPE P(PE LF 40 30.00 2,00(1 RIPRAP CY 10 70.00 700 BAS1N GRADRdO CY 3,000 15.00 45.000 CERALD FORD SUIiTOTAL S2Z3,880 Pagc 2 Received at RWG Law: 10/3/2005 5:20:32 PM 46 1/03/2005 17:19 9496447620 HOVER DEUELOPMENT PAGE 15/15 LANDSCAPING MED1Aid I.AASDSCAPINQ SP 10,000 S6.00 60,000 560,000 TRAFF[C SIGNAIS GE(tALD FORD&PACIF[C AYE LS 0.5 180,000A0 90,000 GERALD FORD&TECHIdOLOGY DR LS 0.5 180,000.00 90,000 GERAI.D FO1tU&PORTOLA CS 0.25 5200,000.00 SQ,OQ 5:30,000 CITY FEES S'TR£5T BrfP.PLAN CHECK FEES LS 950,3 BO 2.00'/0 19,008 STREET fI.INSPEGTION FEE LS 950,380 3.00%2B,S I1 SEVJER IMP.PLAN CI iECK FEE3 LS 0 2.00% SEWER iMP.INSPEC'ftON FEE CS 0 3.00% WATER IIv.PI.AN C[i6CK FEES LS 0 2_00'/0 0 WATER IMP.RJSPECTION FEE S 0 3.' JOIN7 UTII.ITY TRENCH PERMiT FEE IS O 2.00% SIIBT(YI'AL Sd7,519 CONSULTANf FEES L•TfGII IEERINGlSURVEY 950,380 13°.G 142,557 SUBTOTAL S142,SS1 CONT'Ih1GENCY 20Y o OF CON5TRUCITON C06TS 1.140,435 CONTIIVGENCY SUBTOTAI. SO Page 3 Received at RWG Law: 10/3/2005 5:20:32 PM 47 EXHIBIT F LICENSE TEMPORARY ACCESS AND CONSTRUCTION LICENSE THIS TEMPORARY ACCESS AND CONSTRUCTION LICENSE (this "License") is entered into as of 2005, by and between PALM DESERT FUNDING COMPANY, L.P., a Delaware limited partnership ("South Owner"), and PALM DESERT NORTH 80, LLC, a California limited liability company("North Owner"), with respect to the following: RECITALS: A. South Owner and North Owner entered into that certain Road Improvement Agreement dated as of with the City of Palm Desert, a California municipal corporation (the"RIA"). Initially capitalized words or terms used but not defined in this License shall have the meanings assigned to such words or terms in the RIA. B. South Owner and North Owner agreed to execute this License pursuant to Sections 2.11 and 3.5, respectively, of the RIA, in order to provide South Owner with access to the North Property for the purpose of constructing the North Improvements. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, South Owner and North Owner agree as follows: 1.Grant. North Owner grants a non-exclusive license (the"Grant") to South Owner for use by South Owner and Contractor and their respective employees, agents and representatives (collectively, the "South Owner Parties") to enter onto and upon the North Property for the construction of the North Improvements and associated activities. 2.Restrictions. South Owner shall not use, or permit the use of, the North Property except in accordance with the terms and conditions of this License. The South Owner Parties accessing the North Property and constructing the North Improvements shall do so at their own risk. 3.Compliance. South Owner acknowledges and agrees that all aspects of the access to the North Property and construction of the North Improvements must be carried out in a manner that does not pose or create a potential danger to the North Property, and is otherwise in accordance with the Permits and the Improvement Plans for the North lmprovements. as4 xz.9 F-1 48 4.Status of North Improvements. South Owner acknowledges that North Owner may periodically inspect the North Improvements to determine that they are being constructed in accordance with Section 3. Furthermore, in order to provide North Owner with adequate information re arding the status of the North lmprovements, South Owner shall deliver to North Owner, upon North Owner's request (but not more often than once every sixty (60) days), a report detailing the status of the North Improvements. 5.Commencement. Notwithstanding anything in this License to the contrary, the construction of the North Improvements shall not commence unless and until North Owner has received (a) a copy of the Permits and the Improvement Plans for the North Improvements and b) at least one seven (7) days advance notice thereof from South Owner. 6.No Partnership. Nothing contained in this License shall be deemed or construed to create a partnership, tenancy in common,joint tenancy,joint employer liability,joint venture or co-ownership between North Owner and South Owner. North Owner shall have no responsibility or liability in connection with South Owner's rights and obligations with respect to the North Property and/or the North Improvements. Subject to its compliance with the terms and conditions of this License, South Owner shall be free to determine its own policies and practices in the conduct of its business and activities concerning access to the North Property and construction of the North Improvements. 7.In General. South Owner shall take any action necessary to protect the North Property from any damage or injury in connection with its access to the North Property and/or construction of the North Improvements. Upon commencement of the North Improvements, South Owner shall be responsible for maintaining the North Property in a safe and non- hazardous condition. If this License expires or is terminated prior to completion of the North Improvements, South Owner shall, upon North Owner's request, perform, or cause to be performed, all repairs and restoration of the North Property, including the removal of debris and excess soil, required to restore the North Property to at least as good a condition as existed prior to South Owner the Access, excluding any completed portion of the North Improvements that are intended by the Improvement Plans for the North Improvements to be permanent. 8.Liens. South Owner shall not suffer or permit to be enforced against the North Property any liens of inechanics, materialmen, contractors or subcontractors or any claim for damage arising from the North Improvements, and South Owner shall (a) pay, or cause to be paid, all such liens or claims before any action is brought to enforce the same against the North Property; and (b) indemnify, defend (with counsel reasonably satisfactory to North Owner) and hold North Owner and the North Property free and harmless from all liability for any and all such liens and claims. Notwithstanding the foregoing, if South Owner shall in good faith contest the validity of any such lien or claim, then South Owner shall defend itself and North Owner against the same and shall pay and satisfy any adverse judgment that may be rendered thereon before any enforcement thereof against North Owner or the North Property. In such event, and if North Owner shall so require, South Owner shall procure and record or furnish to North Owner a surety bond in accordance with California Civil Code Section 3143, or other acceptable security satisfactory to North Owner in an amount at least equal to 150%of such contested lien or claim, indemnifying North Owner against liability for the same, and holding the North Property free from the effect of any such lien or claim. North Owner reserves the right, at any time and from 854782.9 F-2 49 time to time, to post and maintain on the North Property such notices of non-responsibility as may be necessary to protect North Owner against liability for all such liens and claims. Notwithstanding the foregoing, South Owner shall not be obligated to comply with the requirements of this Section 8 in the event the North Improvements are not paid for as required by the R1A. 9.North Owner Performance. The failure by South Owner to (a) perform any obligation under this License, or (b) comply with any other term or condition applicable to South Owner under this License, and the expiration of thirty (30) days after notice of such failure from North Owner to South Owner shall constitute a default by South Owner under this License; provided, however, that if such failure cannot reasonably be cured within such thirty (30) day period but is capable, with reasonable diligence, of being cured within a total of ninety (90) days, South Owner shall have an additional sixty (60) days in which to effect such cure provided that South Owner commences to cure such failure within the initial thirty (30) day period, at all times diligently pursues the cure to completion, and in fact completes such cure within the subsequent sixty (60) day period. In the event South Owner shall be so in default under this License, North Owner shall be entitled, but shall not be obligated, to perform such obligation or comply with such term or condition on behalf of South Owner. 10. Termination. The License shall, at North Owner's option, terminate immediately upon the first to occur of any one of the following events for any reason whatsoever: (a)the expiration or termination of the RIA; or(b) if South Owner shall be in default under this License. 11. Remedies. South Owner acknowledges that this License is solely an agreement in the nature of a license and that South Owner has no rights as an owner, purchaser or tenant of the North Property by virtue hereof. In the event of the termination hereof due to a default hereunder by South Owner, North Owner may re-enter and take exclusive possession of the North Property and remove all persons or things therefrom without legal process, to the maximum extent permitted by law, or by such legal process as North Owner may deem appropriate. North Owner may also seek any other remedy available at law or in equity, including a suit for damages for any breach or noncompliance herewith (including failure to complete any work commenced and costs to repair and/or replace any defective work and/or work not performed in compliance with the Improvement Plans). All remedies provided herein, by law or in equity shall be cumulative and not exclusive. No termination hereof due to a default hereunder by South Owner shall relieve South Owner of its obligation to perform its obligations hereunder prior to such termination. 12. Suspension. If North Owner determines, in its reasonable discretion, that a) South Owner or the South Owner Parties are not constructing the North Improvements in accordance with the terms and conditions of this License or the RIA, or(b)the North Improvements could create, or have created, a hazardous condition or, except as otherwise contemplated by this License or the RIA, could have, or have had, an adverse effect upon the North Property, then North Owner may give oral or written notice to South Owner or the South Owner Parties to suspend the construction of the North Improvements. Upon receipt of any such notice, South Owner and the South Owner Parties shall immediately suspend the construction of the North Improvements. If such notice is given orally, it shall be followed by written notice as soon thereafter as is reasonably possible. Upon any such suspension, South Owner and North 854782.9 F-3 50 Owner shall use good faith efforts to agree upon reasonable measures that can be taken so that the construction of the North Improvements can be recommenced. In the event North Owner and South Owner cannot agree within fifteen (15)business days following South Owner's receipt of the suspension notice on such measures, North Owner may, but shall not be obligated to, take measures to address the issue as provided in Section 12. 13. As-Built Plans. Within thirty (30) days after the termination or expiration of this License, South Owner shall provide to North Owner(a)"as-built" plans of the North Improvements completed as of the date thereof and (b)to the extent not previously received by North Owner, geotechnical reports, compaction reports and other written materials prepared in connection with obtaining the Permits for the North Improvements. l4. Release. South Owner acknowledges and agrees that South Owner is accepting the License on an "as is," "where is" and "with all faults" basis, subject to any condition that may exist on the North Property, without any representation or warranty by North Owner. South Owner assumes the risk that certain conditions may exist on the North Property and releases North Owner of and from any and all claims, actions, demands, rights, damages, costs or expenses that might arise out of or in connection with any such condition of the North Property. South Owner acknowledges and agrees that (a) South Owner shall be solely responsible for determining the condition of the North Property, including environmental conditions, environmental regulations, zoning classifications, building regulations and other governmental requirements and (b) South Owner is relying solely upon South Owner's inspection, examination and evaluation of the North Property. I 5. Incorporation. The terms and conditions of the RIA, to the extent the same do not conflict with the terms and conditions hereof, are, by this reference, incorporated into, and made a part of, this License. This Space Intentionally Left Blank; Signatures Be in On The Next Page] 854782.9 F-4 51 IN WITNESS WHEREOF, the parties have executed this Temporary Access and Construction License as of the date first above written.. SOUTH OWNER: PALM DESERT FUNDING COMPANY, L.P., a Delaware limited partnership By: Palm Desert Funding Company, LLC, a Delaware limited liability company, its General Partner By: Palm Desert Funding Company, Inc., a Delaware corporation, its Manager By: Thomas I. Hover, Authorized Agent NORTH OWNER: PALM DESERT NORTH 80, LLC, a California limited liability company By: Cornerstone Desert Properties I, LLC, a California limited liability company, its Manager. By: Marix Family Limited Partnership, a Delaware limited Partnership, its Manager By: Marix Family Trust U/D/T dated as of October 12, 2002, as amended, its General Partner By: Michael S. Marix, Trustee xsa x2. F-5 52 EXHIBIT G OFFER RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Desert 73510 Fred Waring Drive Palm Desert, California 92260 Attention: City Manager APN: Space Above For Recorder's Use Only] Exempt from recording fees pursuant to California Government Code Section 6103 IRREVOCABLE OFFER OF DEDICATION THIS IRREVOCABLE OFFER OF DEDICATION (this "Agreement") is entered into as of 2005, by PALM DESERT NORTH 80,LLC, a California limited liability company("Owner"), in favor of the CITY OF PALM DESERT, a California municipal corporation ("City"), with respect to the following: RECITALS: A. Owner is the fee owner of certain real property located in Palm Desert, California, and more particularly described in Exhibit A attached hereto (the"Property"). B. Owner, City and Palm Desert Funding Company, LP, a Delaware limited partnership ("PDFC"), entered into that certain Road Improvement Agreement dated as of the"RIA„) C. Pursuant to Section 3.1 of the RIA, Owner is required to offer to dedicate a portion of the Property to City for right of way purposes in order to widen and otherwise improve the north side of Gerald Ford Drive along the portion thereof that is contiguous with the Property. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Owner agrees as follows: Asa g2.y G-1 53 1.Offer. Owner hereby makes an irrevocable offer(the "Offer") to dedicate to City for right of way purposes the portion of the Property more particularly described in Exhibit B attached hereto (the"Right of Way"). 2.Term. The term of the Offer (the"Term") shall commence on the date that this Agreement is recorded in the Official Records of Riverside County, California (the Commencement Date"), and shall expire on the date that is three (3) years after the Commencement Date (the"Expiration Date"). The Offer is inevocable by Owner until the Expiration Date. 3.Acce tance. City may accept the Offer at any time prior to the Expiration Date by adoption of a resolution of the City Council of City accepting the dedication of the Right of Way (the "Resolution of Acceptance"). The Resolution of Acceptance will authorize City to execute an instrument in substantially the form attached hereto as Exhibit C, accepting the Offer the"Acceptance"). 4.Covenants. Owner covenants, for itself and its successor and assigns, as follows: 4.1 Removal of Liens. To remove, at Owner's sole cost and expense, all matters affecting title to the Right of Way that City reasonably determines could divest it of title to, or otherwise interfere with the proposed use of, the Right of Way after the Acceptance (the Exceptions"). Any such removal shall be performed in accordance with the following: 4.1.1 Owner shall provide City with a preliminary report for the Right of Way issued by a reputable title insurance company dated within sixty (60) days of the Commencement Date (the "Preliminary Report"). 4.1.2 City shall notify Owner of the exceptions described in the Preliminary Report that constitute Exceptions. 4.1.3 Owner shall remove the Exceptions within one hundred twenty l20) days after its receipt of such notice from City. 4.2 Improvements. To permit PDFC to construct, and to pay all costs and expenses incurred in connectian with the design and construction of, the "North Improvements" as defined in the RIA) to the satisfaction of the City Engineer and otherwise in accordance with the RIA. 4.3 Maintenance. Owner agrees to continue to maintain the Right of Way and assume all liability for the condition of the Right of Way until the conditions set forth in Section 6 have occurred. Owner agrees to indemnify, hold harmless, protect and defend City, and its directors, officers, agents, employees and attorneys, from all claims, causes of action, suits, damages or other liabilities occurring in, on or about the Right of Way and/or the Property until the conditions set forth in Section 6 have occurred. 5.Run With Land. The covenants made in this A reement shall run with, and shall burden, the Property for the benefit of City. Such covenants shall inure to the benefit of, or bind, as the case may require, the respective heirs, representatives, successors and assigns of City and 854782.9 G-2 54 Owner. Owner authorizes City to record this Agreement in Of icial Records of Riverside County, California. 6.Liabilitv. Owner and City agree that City shall have no liability with respect to the Right of Way, whether resulting from the maintenance or failure to maintain the same or otherwise, and shall not assume any responsibility for the Right of Way or any improvements or fixtures thereon or therein, unless and until both of the following occur: 6.1 City adopts the Resolution of Acceptance; and 6.2 The North Improvements have been constructed and paid for in accordance with Section 4.2. 7.Notices. Any notice, request, direction, demand, consent, waiver, approval or other communication required or permitted to be given hereunder shall not be effective unless it is given in writing and shall be delivered (a) in person, (b)by certified mail, postage prepaid, return receipt requested, (c) by facsimile, or(d) by a commercial overnight courier that guarantees next day delivery and provides a receipt, and addressed to the parties at the addresses stated below, or at such other address as either party may hereafter notify the other in writing as aforementioned: To Owner: PD North 80, LLC SOOS Calle San Raphael, Suite B-1 Palm Springs, California 92264 Attention: Mr. Michael Marix Facsimile: (760) 778-4417 With a copy to: Reed Smith LLP 355 South Grand Avenue, Suite 2900 Los Angeles, California 90071 Attention: Thomas L. Harnsberger, Esq. Facsimile: (2l3) 457-8080 To City:City of Palm Desert 73510 Fred Waring Drive Palm Desert, California 92260 Attention: City Manager Facsimile: With a copy to: Richards, Watson & Gershon 355 South Grand Avenue, 40' Floor Los Angeles, California 90071-310] Attention: Owen P. Gross, Esq. Facsimile: (213) 626-0078 Service of any such notice or other communications so made shall be deemed effective on the day of actual delivery (whether accepted or refused) as evidenced by confirmed answerback if by facsimile (provided that if any notice or other communication to be delivered 854782.9 G-3 55 by facsimile is unable to be transmitted because of a problem affecting the receiving party's facsimile machine, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non-business day, then such notice or demand so made shall be deemed effective on the first business day immediately following the day of actual delivery. No communications via electronic mail shall be effective to give any notice, request, direction, demand, consent, waiver, approval or other communications hereunder. This Space Intentionally Left Blank; Signature On The Next Page] ssa s2. G-4 56 1N WITNESS WHEREOF, Owner has executed this Irrevocable Offer of Dedication as of the date first written above. OWNER: PALM DESERT NORTH 80, LLC, a California limited liability company By: Cornerstone Desert Properties I, LLC, a California limited liability company, its Manager. By: Marix Family Limited Partnership, a Delaware limited Partnership, its Manager By: Marix Family Trust under Declaration of Trust Dated as of October 12, 2002, as amended, its General Partner By: Michael S. Marix, Trustee STATE OF CALIFORNIA ss. COUNTY OF On before me, a Notary Public in and for the State of California, personally appeared Michael S. Marix, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for the State of California SEAL) 854782.9 G-S 57 CONSENT AND SUBORDINATION TO IRREVOCABLE OFFER OF DEDICATION NOTICE: THIS CONSENT AND SUBORDINATION RESULTS IN THE RIGHTS AND OBLIGATIONS CONTAINED IN CERTAIN AGREEMENTS BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE RIGHTS AND OBLIGATIONS CONTAINED 1N SOME OTHER OR LATER INSTRUMENT. The undersigned, as beneficiary under that certain deed of trust recorded on February 15, 2005, as Document No. in the Official Records of Riverside County, California, hereby acknowledges its consent to the terms and conditions of the Irrevocable Offer of Dedication, and the transactions contemplated thereby, and subordinates the lien of such deed of trust thereto. ART PALM, LLC, a Delaware limited liability company By: Name: Its: STATE OF CALIFORNIA ss. COUNTY OF On before me, a Notary Public in and for the State of California, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for the State of California SEAL) 854782.9 G-6 58 EXHIBIT A TO OFFER LEGAL DESCRIPTION OF PROPERTY The land referred to herein is situated in the State of California, County of Riverside, City of PALM DESERT, described as follows: PARCEL B: 1N THE C1TY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING A PORTION OF PARCEL 6 OF PARCEL MAP WAIVER 01-28, CERTIFICATE OF COMPLIANCE RECORDED SEPTEMBER 7, 2001 AS INSTRUMENT NO. 01-435770 OF OFFICIAL RECORDS, ALSO BE1NG IN THE SOUTH HALF OF SECTION 28 AND THE NORTH HALF OF SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, MORE PARTICULARI.Y DESCRIBED AS FOLLOW S: COMNiENCING AT TI- NORTHWEST CORNER OF SAiD PARCEL 6, SAID CORNER ALSO BEING THE WEST QUARTER CORNER OF SAID SECTION 28; THENCE SOUTH 00°16'S9" EAST ALONG THE WESTERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 28, A DISTANCE OF 1576.95 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 89°43'Ol" EAST, A DISTANCE OF 680.87 FEET TO THE BEGINNING OF A 564 FOOT TANGENT CURVE, CONCAVE TO THE SOUTH; THENCE EASTERLY ALONG SAID CURVE, T OUGH A CENTRAL ANGLE OF 35°44'37", AN ARC DISTANCE OF 351.85 FEET; THENCE TANGENT TO SAID CURVE, SOUTH 54°32'22" EAST, A DISTANCE OF 778.97 FEET; THENCE SOUTH, A DISTANCE OF 437.37 FEET; THENCE SOUTH 47°20'S5" WEST, A DISTANCE OF 33.95 FEET; THENCE NORTH 89°56'08" EAST, A DISTANCE OF 122 FEET; THENCE NORTH 47°25'23" WEST A DISTANCE OF 33.99 FEET; THENCE NORTH, A DISTANCE OF 445.70 FEET TO THE BEGINNING OF A 264 FOOT TANGENT CURVE, CONCAVE TO THE EAST; THENCE NORTHERLY, ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 35°27'38", AN ARC DISTANCE OF 163.39 FEET; THENCE TANGENT TO SAID CURVE, NORTH 35°27'38" EAST, A DISTANCE OF 161.17 FEET; THENCE NORTH 80°27'38" EAST, A DISTANCE OF 35.36 FEET; THENCE SOUTH 54°32'22" EAST, A DISTANCE OF 162 FEET; THENCE SOUTH 56°26'S5" EAST, A DISTANCE OF 360.20 FEET; THENCE ALONG A LINE PARALLEL OR CONCENTRIC WITH AND 72 FEET SOUTHWESTERLY AND WESTERLY (MEASURED PERPENDICULAR TO OR RADIALLY) OF THE SOUTHWESTERLY AND WESTERLY LINE OF PARCEL 5 OF SAID PARCEL MAP WAIVER 01-28, THE FOLLOWING 3 COURSES: 1.SOUTH 54°32'22" EAST A DISTANCE OF 2149.72 FEET TO THE BEGINNING OF A 264 FOOT TANGENT CURVE, CONCAVE TO THE SOUTHWEST; 854782.9 G- 59 2.THENCE SOUTHEASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 63°49'20" AN ARC DISTANCE OF 294.07 FEET TO THE BEGINNING OF A 1682 FOOT REVERSE CURVE, CONCAVE TO THE EAST, A RADIAL TO SAID BEGINNING BEARS NORTH 80°43'02" WEST; 3.THENCE SOUTHERLY ALONG SAID CURVE, THROUGH A CENTRAI, ANGLE OF 12°59'30", AN ARC DISTANCE OF 381.39 FEET, TO THE BEGINNING OF A 264 FOOT REVERSE CURVE, CONCAVE TO THE NORTHWEST A RADIAL TO SAID BEGINNING BEARS NORTH 86°17'28" EAST, SAID BEGINNING ALSO BE1NG ON THE WESTERLY LINE OF TECHNOLOGY DRIVE RIGHT OF WAY DESCRIBED IN DOCUMENT NO. 00-519849 RECORDED DECEMBER 29, 2000 OF OFFICIAL RECORDS; THENCE SOUTHWESTERLY ALONG SAID CURVE AND SAID WESTERLY L1NE, THROUGH A CENTRAL ANGLE OF 83°20'31", AN ARC DISTANCE OF 384.01 FEET, TO THE BEGINNING OF A 336 FOOT REVERSE CURVE, CONCAVE TO THE SOUTHEAST A RADIAL TO SAID BEGINNING BEARS NORTH 10°22'O1" WEST; THENCE SOUTHWESTERLY ALONG SAID CURVE AND CONTINUING ALONG SAID WESTERLY LINE, THROUGH A CENTRAL ANGLE OF 56°50'25" AN ARC DISTANCE OF 333.33 FEET; THENCE TANGENT TO SAID CURVE AND ALONG SAID WESTERLY LINE, SOLJTH 22°47'34", A DISTANCE OF 117.79 FEET TO A POINT ON THE NORTHEASTERLY LINE OF GERALD FORD DRIVE, 110 FEET WIDE, AS DESCRIBED IN INSTRUMENT NO. 238527, RECORDED JULY 8, 1997 OF OFFICIAL RECORDS, AND TO THE BEGINNING OF A 945 FOOT NON-TANGENT CURVE CONCAVE TO THE NORTHEAST A RADIAL TO SAiD BEGINNING BEARS SOUTH 24°58'33" WEST. THE FOLLOWING 7 COURSES ARE ALONG THE NORTHEASTERLY AND NORTHERLY LINES OF GERALD FORD DRIVE: 1.THENCE NORTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 67°17'S6" AN ARC DISTANCE OF 1109.98 FEET TO THE BEGINNING OF A 1055 FOOT REVERSE CURVE, CONCAVE TO THE SOUTHWEST A RADIAL TO SA1D BEGINNING BEAR5 SOUTH 87°43'31" EAST; 2.THENCE NORTHWESTERLY ALONG SA1D CURVE, THROUGH A CENTRAL ANGLE OF 92°20'21", AN ARC DISTANCE OF 1700.26 FEET; 3.THENCE TANGENT TO SA1D CURVE, SOUTH 89°56'08" WEST, A DISTANCE OF 1615.27 FEET; 4.THENCE NORTH 85°06'40" WEST, A DISTANCE OF 150.56 FEET; 5.THENCE SOUTH 89°56'08" WEST, A DISTANCE OF 200 FEET; 6.THENCE NORTH 45°10'31" WEST, A DISTANCE OF 32.46 FEET; 7.TI-IENCE SOUTH 89°43'O1" WEST, A DISTANCE OF 23 FEET TO A PO1NT ON A LINE PARALLEL WITH AND 39 FEET EASTERLY OF THE WESTERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 28; THENCE SOUTH 00°16'S9" EAST A54782.9 G_g 60 ALONG SAID PARALLEL LINE, A DISTANCE OF 90.82 FEET TO A POINT OF 1NTERSECTION OF THE NORTHERLY LINE OF THE NORTHWEST QUARTER OF SAID SECTION 33, AND A LINE PARALLEL WITH AND 39 FEET EASTERLY OF THE WESTERLY LINE OF SAID NORTHWEST QUARTER; THENCE SOUTH 00°OS'38" EAST ALONG LAST SAID PARALLEL L1NE, A DISTANCE OF 329.01 FEET TO A POINT ON A LINE PARALLEL WITH AND 329.01 FEET SOUTHERLY OF SAID NORTHERLY LINE OF SAID NORTHWEST QUARTER; THENCE SOUTH 89°56"08" WEST ALONG LAST SAID PARALLEL LINE, A DISTANCE OF 39 FEET TO A POINT ON SAID WESTERLY LINE OF THE NORTHWEST QUARTER; THENCE NORTH 00°OS'38" WEST ALONG SAID WESTERLY LINE TO THE SOUTHWEST CORNER OF SAID SECTION 28, A DISTANCE OF 329.01 FEET; THENCE NORTH 00°16'S9" WEST ALONG THE WESTERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 28, A DISTANCE OF 1084.36 FEET TO THE TRUE PO1NT OF BEGINNING. End of Legal Description 854782.9 G-9 61 EXHIBIT B TO OFFER LEGAL DESCRIPTION OF RIGHT OF WAY See Attached) xsa s2.9 G-10 62 RBF CONSULTING 74-130 Country Club Drive,Suite 201 Palm Desert,CA 92260 October 10,2005 JN 20-100626.01 Page 1 of 2 EXffiBIT A" RIGHT OF WAY GERALD FORD DRIVE That certain parcel of land situated in the City of Palm Desert, County of Riverside, State of California, being a portion of Parcel "B" as described in Parcel Map Waiver 03-04, recorded January 28, 2003, as Instrument No. 2003-060548 of Official Records, in the Office of the County Recorder,of said County of Riverside,described as follows: BEGINNING at the centerline intersecrion Portola Avenue and Gerald Ford Drive as described in a Grant Deed, recorded July 8, 1997, as Instrument No. 238527, said point also being the southwest corner of Section 28,Township 4 South,Range 6 East,San Bernardino Meridian; thence North 00°16'S8" West 164.32 feet along the west line of Pazcel "B" as shown on said Parcel Map Waiver 03-04,said line also being the west line of said Section 28; thence North 89°43'02"East 96.00 feet; thence South 45°09'S8" East 124.23 feet to a point on a line parallel and 77.00 feet north of the said centerline of Gerald Ford Drive; thence along said parallel line North 89°56'07"East 250.00 feet; thence South 88°47'30" East 90.02 feet to a point on a line parallel and 75.00 feet north of the said centerline of Gerald Ford Drive; thence along said parallel line North 89°56'07"East 1098.27 feet; thence South 47°20'S6"West 8.89 feet to a point on a line lying parallel and 68.98 feet north of said centerline of Gerald Ford Drive; thence along said parallel line North 89°56'09"East 122.00 feet; thence North 47°25'22" West 8.88 feet; to a point on a line parallel and 75.00 feet north of the said centerline of Gerald Ford Drive; thence along said parallel line North 89°56'07" East 319.36 feet to the beginning of a tangent curve,concave southwesterly and having radius of 1075. 00 feet; thence along said curve southeasterly 1732.49 feet through a central angle of 92°20'20" to the beginning of a reverse curve, concave northeasterly, and having a radius of 925.00 feet, a radial line&om said point bears South 87°43'33"East; 63 EXHIBIT"A" October 10,2005 RIGHT-OF-WAY JN 20-100626 GERALD FORD DRIVE Page 2 of 2 thence along said curve southeasterly 1059.20 feet through a central angle of 65° 36' 33" to a point of a non-tangent line,a radial from said point bears North 26°40'03"East; thence North 69°38'06"East 36.35 feet to a point on the westerly Right-of-Way of Technology Drive as shown on said Parcel"B"of Parcel Map Waiver 03-04; thence South 22°47'S4" West 46.34 feet to the beginning of a non-tangent curve, concave northeasterly and having a radius of 945.00 feet,a radial line from said point bearing North 24°58'33" East, said point also lying on the north line of Parcel 1 as described in said Grant Deed,recorded July 8, 1997 as Instrument No.238527; thence along said curve northwesterly 1109.98 feet through a central angle of 67°17'S6" to the beginning of a reverse curve,concave southwesterly and having a radius of 1055.00 feet; thence along said curve northwesterly 1700.26 feet through a central angle of 92°20' 20"; thence tangent line from said curve South 89°56'Q7"West 1615.27 feet; thence North 85°06'41 West 150.56 feet; thence South 89°56'07"West 200.00 feet; thence North 45°10'44"West 32.46 feet; thence South 89°42'S5"West 23.00 feet; thence South 00°16'S8"East 90.82 feet; thence South 89°56'07" West 39.00 feet intersection Portola Avenue and Gerald Ford Drive as described in said Grant Deed, recorded July 8, 1997 as Instrument No. 238527, said point also being the POINT OF BEGINNING. CONTAINING: 2.465 Acres,more or less. EXHIBIT"B"attached and by this reference made a part hereof. SUBJECT TO all Covenants,Rights,Rights-of-Way and Easements of Record. This description was prepared by me or under my direction. Levi D. Cox,P.L.S. 7930 My liccnse expires 12/31/07. H:\P DATA1201006281Adrti nUepels G26LG L001.dac 64 1NDICATES R.0. W. FOR SCALE: 1"=200' GERALD FORD DRI VE 2.465 ACRES SEE SHEET 2 I c 55,i 5, l l li Cr_r t L Iti 1l Cr l Il l 1 r l lJ. :l 7":1J 1 Z l/.Ur'. I J:—J 5 \ 6 ' O I9C/L PACIFIC AVENUE a r N q I IRCrI 3 ' i iJC`L l l l F' l lJ. ::l/JA r` i .1 A ` I 1. I J:—J O q0 L) i-` ,' C° n l Z Z cfl o', ( C GRANT DEED L 5 ; INSl. N0. 238527 Q,REC. 07/08/1997 0.R, Z z 14 3 SEE DETAIL RIGHT 68' ' 75' i i I 15 I 1 ; i 2 ,6 a R. I i m A 18 Q : LLl C.) 1 J o mo0 j C/L PORTOLA. A VENUE gZI68 ; 75 a x I DETAIL z Q ; N. T.5 m `' W P.0.B. Q - i x C/L lNT. PORTOLA AI/E. i G 0 FORD OR. C/L PORTOLA SHEET 1 OF 3 SHEETS o EXHIBIT B uAVENUEPLANNINO D[fION QONfTRl1CTIDN b PLAT 70 ACCOMPANY A g 7-4q FpFhVAY M LEGAL OESCRIPTION FOR rn Moes xr.caForou 9zzao-ena RIGHT—OF—WAY DEDICA710N. C NsuLTINo so3ae.aet . Fatt eoaae.e u• „w..o,,,, DA7E: OCTOBER 10, 2005 JN: 20-10G626-001 r 65 N87°43'33"W (R) IND7CATES R.O.W. FOR P,R.C. RALD FORD ORI E 2.455 ACRES S87°43'.33"E=K/ o P.R._C__- wl O' . m f z, L ,o° , '1 ' r, 0 0,j SCALE: 1"=200' O`` 1. , // /'s ti ry e o y Z, E, _...__. 1. .__ GRANr DEED t INST. N0. 238527 REC. 07/08/1997 O.R. S % l Fi'rr_rL iSS; s r 1 RCrJ_ l`il l r l lJ. 1/7:0 l/., I f J:—'J 2p r r i ' 1 h CCL J k o ti j o NI ' h g C/L PACIFIC A VENUE m 7 I a N m i i r 1 r-1 1 CLrL g op , 1 F1 rLr lvl l lJ. :I 7':J P.NI.. 2 1/J-7 m o C W `n s1 = o rn c°n ` SHEET 2 OF 3 SHEETS 8 EXHIBIT '!`/ PUNNINO D[aloN OON TRU6TION pT 1 N a-aw i-arNnr m PLAT TO ACCOMPANY A Q SEE SHEET 1 LEGAL DESCRIPTION FOR P ESEAT•CALFOFWA9226o-M10 C D N S U LTI N Q 760.34674et .FAx 7e0.348.Ki15• wwwABF.com o RIGHT-OF-WAY DEDICATIQN,pqTE: CTOBER 10, 2005 JN: 20-100626-001 66 I NDICA TES R.0.W. FOR GERALD FORD DRI VE 2.465 ACRES SCALE: 1"=200' y/ 12 i f n J H C lr' il.l JJ-J; 1 f ch' o ST. !V J. /J:/ k l cY J I?J/2JJ 1 J.F, o° s, % P.0. T. o o ss L s, 1 o, / N24°58' 33"E (R) o, / QO ` N87°43'33"W R) Ft%° O'lvY f'Fi rCr P.R.C^ ,36' R, 9 ,,- 6 6 G`"%io 6 '" C ti 1------o-----_-,_--- GRANT DEEDS8743'33'`E_(. INST. N0. 238527 REC. 07/08/1997 O.R. \ r Tl f'CrL 7 L rl kC'L l/l P l lJ. :3/ 7:J' J.I.L7. J:—J E0 nN P hO m N DATA TABLE DATA TABLE O BEARING/DELTA RADIUS LENGTH NO BEARING/DELTA RAD[US LENGTH m 1 N00° 16'58"W 164.32' 10 N89'S6'07"E 319.36' 2 N89'43'02"E 96.00'11 N69°38'06"E 36.35' 3 S45'09'S8"E 124.23' 12 S22°47'34"W 46.34' X 4 N89'S6'07"E 250.00' 13 N85'06'41"W 150.56' r 5 S88'47'30"E 90.02'14 589'S6'07"W 200.00' 6 S89'S6'07"W 615.27' i5 N45' i0'44"w 32.a6' m 7 Sa7°20'S6"W 8.89' 16 S89°a2'S5"w 23.00' 8 N89°56'09"E 122.00' 17 S00° 16'S8"E 90.82' s 9 N47'25'22"W 8.88' 18 S89°56'07"W 39.00' SHEET 3 OF 3 SHEETS o EXHJB T n P4ANNINO DLYION CONfTqUCT1 N g PLAT TO ACCOMPANY A 74-410HOhiWAYtp H LEGAL DESCRIPTION FOR P u+oes r+r,cn awUs2zeo-an< i RIGHT—OF—WAY DEDICATION. Cor su TiNa eo.aae ae+ • Fwc coaas.sns• ..M < 0 DATE: OCTOBER 10, 2005 JN: 20-100626-001 i t 67 EXHIBIT C TO OFFER FORM OF ACCEPTANCE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Desert 73510 Fred Waring Drive Palm Desert, California 92260 Attention: City Manager APN: Space Above For Recorder's Use Only] Exempt from recording fees pursuant to California Government Code Section 6103 ACCEPTANCE OF DEDICATION OF RIGHT OF WAY The City of Palm Desert, a California municipal corporation ("Grantee"), hereby accepts the offer of dedication (the"Offer") of certain real property located in Palm Desert, California, and more particularly described in Exhibit A attached hereto for right of way purposes(the Right of Way") entered into by Palm Desert North 80, LLC, a California limited liability company("Grantor"), pursuant to that certain Irrevocable Offer of Dedication dated as of executed by Grantor in favor of Grantee and recorded in Offcial Records of Riverside County, California, on as Instrument No. the "Agreement"). The Offer, and this Acceptance of Dedication of Right of Way, arise from and are made pursuant to the Agreement. The undersigned is authorized to execute this Acceptance of Dedication of Right of Way on behalf of Grantee pursuant to a resolution of the City Council of Grantee adopted on a copy of which is attached hereto and incorporated herein by this reference. This Space Intentionally Left Blank; Signature On The Next Page] xsa s2. G-1 1 68 IN WITNESS WHEREOF, the undersigned has executed this Acceptance of Dedication of Right of Way as of GRANTEE: CITY OF PALM DESERT, a California municipal corporation By: Name: lts: ATTEST: City Clerk 5TATE OF CALIFORNIA ss. COUNTY OF RIVERSIDE On before me, a Notary Public in and for the State of California, personally appeared personally known to me(or proved to me on the basis of satisfactory evidence)to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for the State of California SEAL) 854782.9 G-12 69 EXHiBIT A TO ACCEPTANCE OF DEDICATION OF RIGHT OF WAY LEGAL DESCRIPTION OF RIGHT OF WAY See Attached) 854782.9 G-13 70 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALM DESERT ACCEPTING AN IRREVOCABLE OFFER OF DEDICATION OF RIGHT OF WAY FOR THE WIDENING OF THE NORTH SIDE OF GERALD FORD DRI VE The City Council of the City of Palm Desert hereby determines, resolves and orders as follows: Palm Desert North 80, LLC, a California limited liability company("Owner"), is the fee owner of certain real property located in Palm Desert, California, and more particularly described in Exhibit A attached hereto (the "Property"). Owner has previously entered into that certain Irrevocable Offer of Dedication of Right of Way dated as of and recorded in the Of icial Records of Riverside County, California, on as Instrument No. the Agreement"), pursuant to which Owner irrevocably offered to dedicate to the City of Palm Desert, a California municipal corporation, a portion of the Property for right of way purposes, which portion is more particularly described in Exhibit B attached hereto (the "Right of Way"). Such dedication is required by, and is in conformance with, the Palm Desert Municipal Code. City hereby accepts the irrevocable offer to dedicate the Right of Way as set forth in the Agreement. The City Engineer is hereby authorized and directed to execute the Acceptance of Dedication of Right of Way in the form attached hereto as Exhibit C (the"Acceptance"). The City Clerk is hereby authorized and directed to record the Acceptance in the Official Records of Riverside County, California, and to furnish a copy of this Resolution to Owner at the address of record. This Space Intentionally Left Blank; Continued On The Next Page] 854782.9 G-14 71 The City Clerk shall certify to the adoption of this Resolution and shall cause this Resolution and his/her certification to be entered in the Book of Resolutions of the City Council of the City of Palm Desert. Adopted: Mayor of the City of Palm Desert, California ATTEST: City Clerk APPROVED AS TO FORM: City Attorney APPROVED AS TO CONTENT City Manager Director of Civil Engineering 8 4782.9 G-15 72 EXHIBIT A TO RESOLUTION NO. LEGAL DESCRIPTION OF PROPERTY The land referred to herein is situated in the State of California, County of Riverside, City of PALM DESERT, described as follows: PARCEL B: 1N THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BE1NG A PORTION OF PARCEL 6 OF PARCEL MAP WAIVER 01-28, CERTIFICATE OF COMALIANCE RECORDED SEPTEMBER 7, 2001 AS INSTRUMENT NO. 01-435770 OF OFFICIAL RECORDS, ALSO BEING IN THE SOUTH HALF OF SECTION 28 AND THE NORTH HALF OF SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID PARCEL 6, SAID CORNER ALSO BEING THE WEST QUARTER CORNER OF SAID SECTION 28; THENCE SOUTH 00°16'S9" EAST ALONG THE WESTERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 28, A DISTANCE OF 1576.95 FEET TO THE TRLTE POINT OF BEGiNN1NG; THENCE NORTH 89°43'O1" EAST, A DISTANCE OF 680.87 FEET TO THE BEGINNING OF A 564 FOOT TANGENT CURVE, CONCAVE TO THE SOUTH; THENCE EASTERLY ALONG SAID CURVE, THROUGH A CENTRaL ANGLE OF 35°44'37", AN ARC DISTANCE OF 351.85 FEET; THENCE TANGENT TO SAID CURVE, SOUTH 54°32'22" EAST, A DISTANCE OF 778.97 FEET; THENCE SOUTH, A DISTANCE OF 437.37 FEET; THENCE SOUTH 47°20'S5" WEST, A DISTANCE OF 33.95 FEET; THENCE NORTH 89°56'08" EAST, A DISTANCE OF 122 FEET; THENCE NORTH 47°25'23" WEST A DISTANCE OF 33.99 FEET; THENCE NORTH, A DISTaNCE OF 445.70 FEET TO TI E BEGINNING OF A 264 FOOT TANGENT CURVE, CONCAVE TO THE EAST; THENCE NORTHERLY, ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 35°27'38", AN ARC DISTANCE OF 163.39 FEET; THENCE TANGENT TO SAID CURVE, NORTH 35°27'38" EAST, A DISTANCE OF 161.17 FEET; THENCE NORTH 80°27'38" EAST, A DISTANCE OF 35.36 FEET; THENCE SOUTH 54°32'22" EAST, A DISTANCE OF 162 FEET; THENCE SOUTH 56°26'S5" EAST, A DISTANCE OF 360.20 FEET; THENCE ALONG A LINE PARALLEL OR CONCENTRIC WITH AND 72 FEET SOUTHWESTERLY AND WESTERLY (MEASURED PERPENDICULAR TO OR RADIALLY) OF THE SOUTHWESTERLY AND WESTERLY LINE OF PARCEL S OF SAiD PARCEL MAP WAIVER 01-28, THE FOLLOWING 3 COURSES: 1.SOUTH 54°32'22" EAST A DISTANCE OF 2149.72 FEET TO THE BEGINNING OF A 264 FOOT TANGENT CURVE, CONCAVE TO THE SOUTHWEST; 854782.9 G-16 73 2.THENCE SOUTI ASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 63°49'20" AN ARC DISTANCE OF 294.07 FEET TO THE BEGINNING OF A 1682 FOOT REVERSE CURVE, CONCAVE TO THE EAST, A RADIAL TO SA1D BEGINNING BEARS NORTH 80°43'02" WEST; 3.TI-IENCE SOUTHERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 12°59'30", AN ARC DISTANCE OF 381.39 FEET, TO THE BEGINNING OF A 264 FOOT REVERSE CURVE, CONCAVE TO THE NORTHWEST A RADIAL TO SAID BEGINNING BEARS NORTH 86°17'28" EAST, SAID BEGINNING ALSO BEING ON THE WESTERLY LINE OF TECHNOLOGY DRIVE RIGHT OF WAY DESCRIBED iN DOCUMENT NO. 00-519849 RECORDED DECEMBER 29, 2000 OF OFFICIAL RECORDS; THENCE SOUTHWESTERLY ALONG SAID CURVE AND SAID WESTERLY L1NE, THROUGH A CENTRAL ANGLE OF 83°20'31", AN ARC DISTANCE OF 384.01 FEET, TO THE BEGINNING OF A 336 FOOT REVERSE CURVE, CONCAVE TO THE SOUTHEAST A RADIAL TO SAID BEGINNING BEARS NORTH 10°22'O1" WEST; THENCE SOUTHWESTERLY ALONG SAID CURVE AND CONTINUING ALONG SAID WESTERLY L1NE, THROUGH A CENTRAL ANGLE OF 56°50'25" AN ARC DISTANCE OF 333.33 FEET; THENCE TANGENT TO SAID CURVE AND ALONG SAID WESTERLY LINE, SOUTH 22°47'34", A DISTANCE OF 117.79 FEET TO A POINT ON THE NORTHEASTERLY LINE OF GERALD FORD DRIVE, 110 FEET WIDE, AS DESCRIBED 1N INSTRUMENT NO. 238527, RECORDED NLY 8, 1997 OF OFFICIAL RECORDS, AND TO THE BEGINNING OF A 945 FOOT NON-TANGENT CURVE CONCAVE TO THE NORTHEAST A RADIAL TO SAID BEGINNING BEARS SOUTH 24°58'33" WEST. THE FOLLOWING 7 COURSES ARE ALONG THE NORTHEASTERLY AND NORTHERLY LINES OF GERALD FORD DRIVE: 1.THENCE NORTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 67°17'S6" AN ARC DISTANCE OF 1109.98 FEET TO THE BEGINNING OF A 1055 FOOT REVERSE CURVE, CONCAVE TO THE SOUTHWEST A RADIAL TO SAID BEGINNING BEARS SOUTH 87°43'31" EAST; 2.THENCE NORTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 92°20'2l", AN ARC DISTANCE OF 1700.26 FEET; 3.THENCE TANGENT TO SA1D CURVE, SOUTH 89°56'OS" WEST, A DISTANCE OF 1615.27 FEET; 4.THENCE NORTH 85°06'40" WEST, A DISTANCE OF 150.56 FEET; 5.TI-NCE SOUTH 89°56'08" WEST, A DISTANCE OF 200 FEET; 6.THENCE NORTH 45°l 0'3]" WEST, A DISTANCE OF 32.46 FEET; 7.THENCE SOUTH 89°43'O1" WEST, A DISTANCE OF 23 FEET TO A POINT ON A LiNE PARALLEL WITH AND 39 FEET EASTERLY OF THE WESTERLY L1NE OF THE SOUTHWEST QUARTER OF SAID SECTION 28; THENCE SOUTH 00°16'S9" EAST 854 82.9 G-17 74 ALONG SAID PARALLEL LINE, A DISTANCE OF 90.82 FEET TO A PO1NT OF 1NTERSECTION OF THE NORTHERLY LINE OF THE NORTHWEST QUARTER OF SAID SECTION 33, AND A L1NE PARALLEL WITH AND 39 FEET EASTERLY OF THE WESTERLY LINE OF SAID NORTHWEST QUARTER; THENCE SOUTH 00°OS'38" EAST ALONG LAST SA1D PARALLEL LINE, A DISTANCE OF 329.01 FEET TO A POINT ON A LINE PARALLEL WITH AND 329.01 FEET SOUTHERLY OF SAID NORTHERLY LINE OF SAID NORTHWEST QUARTER; THENCE SOUTH 89°56"08" WEST ALONG LAST SAID PARALLEL LINE, A DISTANCE OF 39 FEET TO A POINT ON SAID WESTERLY LINE OF THE NORTHWEST QUARTER; THENCE NORTH 00°OS'38" WEST ALONG SA1D WESTERLY L1NE TO THE SOUTHWEST CORNER OF SAID SECTION 28, A DISTANCE OF 329.01 FEET; THENCE NORTH 00°16'S9" WEST ALONG THE WESTERLY L1NE OF THE SOUTHWEST QUARTER OF SAID SECTION 28, A DISTANCE OF 1084.36 FEET TO THE TRUE POINT OF BEGINNING. End of Legal Description xsa A2. G-1 8 75 EXHIBIT B TO RESOLUTION NO. LEGAL DESCRIPTION OF RIGHT OF WAY See Attached) 854782.9 G-19 76 EXHIBIT C TO RESOLUTION NO. FORM OF ACCEPTANCE 8547A2.9 i-20 77 EXHIBIT H PUBLIC BIDDING AND CONTRACTING REQUIREMENTS See Attached) gsa x2.y H-1 78 CHAPTER 3.30 PUBLIC WORKS CONTRACTS AND BfDDING REQUIREMENTS 3.30.010 Purpose. Pursuant to the authority set forth in Section 300 of the Pelm Deseri Charter,the city may provfde local prxedures and requirements for the bidding,award and performance of public works projects.(Ord.927§ 1 (part),2000) 3.30.020 Munlcipal proJects. B.The provislons of subsection A of this section shall not apply when the public works proJects are funded in whole or in part by state or federal loans,or grants, and payment of prevailing wages Is required in order to receive state or federal funding.(O d.927§ 1 part),2000) 3.30.030 Definitions. As used herein: A. "Public project"or"public works"means: 1.A project for the erectfon, improvement,or repair of public buildings and works,or other pubiic projects; 2.Work in or about streams,embankments or other works for protection against overflow; 3.Stree1 or sewer work except maintenance or repalr,and 4.Fum(shing supplies or materials for any such project includfng maintenance or repair of streets. B."Sole source"means that the particular item calfed for can only be supp(ied by one company,organization or individual, C."Emergency"means a sudden,unexpected occurrence that poses e clear,eminent danger requi ing immediate action to prevent or mitigate the loss or impairment of life, help, prope ty or essentlal public services. D."Responsible bfdder"means that bidder who can, based upon quality,fitness and thefr capacity to satfsfactorily perForm the proposed work,based upon attributes of trustworthiness, references and past contracting experience. (Ord. 927§ 1 (part), 2000) 3.30.040 Bids--When required. When the expenditure required for a public proJect exceeds ten thousand dollars, it should be contracted for and let to the lowest responsible bidder afier notice, (Ord.927§ 1 (part), 2000) 3.30.050 Notice inviting bids. 79 j Notice invit(ng bids shall specify a date for the opening of bids.The first publication or postinp of the notice shell be at least ten days before the date of opening of bids. Natice shall be published at least twice not fess than flve days apart,in e newspaper of generel circulation, printed and published In the city,(Ord.927§ 1 (part),2000) Note: A copy oi the bids and proof of publication will be necessary fcr re(mbursement. 3.30.060 Rejection of bids. In its sole discretlon,the district le ialaiiw etly may re)ect any bids presented and re- advertised. If two or more bids are the same or the lowest,the district kgi feii a s ly may accept the one it chooses. If no bids are received,the district le islati s ied r mey have the proJect done wlthout further complying with this chapter in any manner that the council may direct.lf no bids aze received andlor a!I b(ds are reJected,the council may on a vote of four-fifths of the council,declare that the project can be performed more economically by city personnel or that a contract to perform the project can be negotiated with the original bidders et a lower price than any of the bids or the materials or supplies furnished at a lower price in the open marfcet. Upon such deasion,the council mey direct the project to be done in the manner stated without further complying with this chapter. (Ord. 927§ 1 part), 2000) EPa)*'eA 80 1 f fPe 3.30.130 Appllcabllity oi state provisions--City contracts. Sections 7100 through 7200 of the Public Contracts Code are incorporated herein as if fully set forth and shall be applicable to c(ty contracts.(Ord.927§ 1 (part),2000) 81 1 3.30.140 Appliaability of state provisions--Retention of proceeds for city contracts. Sectian 22300 of the Public Contracts Code is incorporated herein as if fully set forth and shall be applicable to the retentlon of proceeds for Gty contracts.(Ord.927 § 1 (part), 2000) whieN: 3.30.170 Contents of bids or offers. Any city official taking bids for the construction of any public work or improvement shall provide in the specifications prepared for the work or improvement or In the general conditions under which bids will be received for the doing of the work lncident to the public work or improvement that any person makfng a bid or offer to perform the work, shall, in his or her bid or offer,set forth:lhe neme end the lacation of the place of business of each subcontractor who will perform work or labor or render service to the prime contractor in or about the constructlon of the work or improvement,or a subcontractor licensed by the state of Califomfa who, under subc:ontract to the prime contractor,sp cfally fabricates and installs a portion of the work or improvement according to detailed drawings contalned In the plans and specifications,in an amount in excess of one-half of one percent of the p ime contracto's total bid. (Ord. 927§ 1 (part),2000) 3.30.180 Fallure to peclty or speciflcatlon oi more than one subcontractor--Pe fcrmance by prtme contractor. If a prime contractor fals to specify a subcontractor or if a prime contractor specifies more than one subcontractor for the same port(on of work to be performed under the contract in excess of one-helf of one percent of the prime contractor's total bid,the prime contractor agrees that he o she is fully qualified to perform that portion himself w herself, and that the prime cantractor shall perform that portlon himself or herself. (Ord. 927§ 1 (part), 2000) 3.30.190 Prime contractor whose bid fs accepted—Prohibitions. A.A pr(me contractor whose bid is accepted may not: 82 1 1.Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except thet the ewerding authority, or its duly authorized officer, may,except as otherwise provided in this section,consent to the substltution of another person as a subcontractor fn any of the following situations: a.When the subcontractor listed in the bid after having had a reasonable opportunity to do so fails or refuses to execute a w itten contract,when that vv itten contract,based upon the general terms,cond(tions, plans and specifications for the project involved or the terms of that subcontractors written bid,(s presented to the subcontrector by the prfine contractor; b.When the Ifsted subcontrector becomes bankrupt or insolvent; c.When the listed subcontractor fails or refusse to pertorm his or her subcontract; d.When the Ilsted subcontractor falls or refuses to meet the bond requirements of the prime contractor as set forth in Sectlon 3.30.210 of this chapter; e.When the prime contractor demonstrates to the awarding authority, or its duly authorized o cer, subject to the further provisions set forth in this sectfon,that the name of the subcontractor wes listed as the result of an inadvertent clerfcal error; f.When the listed subcontractor is not Ilcensed pursuant to the contractors license law; g.When the awarding uthority,or fts duly authorfzed officer,determines that the work performed by the Iisted subcontractor is substant(ally unsatisfactory and not In substantial accordance with the plans and specifications,or that the subcontractor is substantlally delaying or disrupting the progress of the work; h.When the Ilsted subcontractor is ineligible to work on e public works project pursuant to Section 1777.1 or 177T.7 of the Labor Code. Prior to approval of the prime contractor's request for the substitutlon In the awarding autho ity, or its duly authorfzed ofilcer,shall glve notice In wrlting to the Ilsted subcontractor of the prime contractor's request to substitute and of the reasons for the request.The notice shall be served by certified or registered mail to the last known address of the subcontractor.The listed subcontractor who has been so not(fled shall heve five working days within which to submit written abjections to the substitutlon to the awarding authority. Failure to file these written objectbns shall constitute the listed subcontradors consent to the substltution. If writteri object(ons are filed, the awarding authority shall glve notice in writing of at least five working days to the listed subcontractor of a hearing by the awarding authority or its designated agent on the prime contracto's request for substituUon. 2.Permit a subcontrect to be voluntarily assigned or transferred o allow it to be pertormed by anyone other than the original subcontractor listed in the original bid,without the consent of the awardfng authority,or its duly authorized offlcer. 3.Other than In the performance of change orders causing changes or devlatlons from the original contract,sublet or subcontract any portion of the work in excess of one-half of one percent of the prfine contractor's total bid as to which his or her orlginal bld did not designate a subconVactor.(Ord. 927§ 1 (pa t),2000) 3.30.200 Clalm of tnadvertent clerical enor In listing subcontractors-- Notice—ObJectlon—Hearing. The prime contractor as a condition to assert a claim of inadvertent clerical error in the listing of a subcontractor shell within two working days after the time of the prime bid opening by the awardi g authorlty g(ve written nodce to the awarding authority and copies of that notice to both the subcontractor he or she clalms to have Ilsted in enor and the intended subcontractor who had bld to the prlme contractw prior to bld opening. Any listed subcontractor who has been notified by the prime contractor in accordance with this section as to an inadvertent clerical error shall be allowed six working days from the time of the prlme bid opening wlthin which to submit to the awarding authorlty and to the prlme contractor written objection to the prime contrector's claim of inadvertent cle ical error. Fellure of the listed subcontractor to file the written notice within the six working days 83 M shaN be primary evidence of his or her agreement that an inadvertent clerical eRor was made. The awarding euthority may, after e public hsaring as provided in Section 3.30.190 of this chapter and in the absence of vompelling reasons to the contrary,consent to the subsUtution of the intended subcontractor. (Ord.927§ 1 (part),2000) 3.30.210 Faithful pertormance and payment bonds of subcontractors. A. It shall be the responsibif ity of each subcontractor submitting blds to a prime contractor to be prepared to submit a faithful performance and payment bond or bonds lf so requested by the prime contractor. B. In the event any subcontractor submitting a bki to a prime contractor does not, upon the request of the prime contractar end at the expense of the prime contractor at the established charge or premium therefor,fumish to the prime contractor a bond or bonds issued by an admltted surety wherein the prfine contractor shal{be named the obligee, guaranteeing prompt and faithful performance of the subcontract and the payment of all claims for labor and materials furn(shed or used in and about the work to be done and performed under the subcontract,the prime conhactor may reject the bid and make a substltution of another subcontrector subject to Section 3.30.190 of th(s chapter. C. 1.The bond or bonds may be requfred under this section only if the prime contractor in his or her written or published request for sub-bids dearly speGfles the amount and requirements of the bond or bonds. 2. If the expense of the bond or bonds required under th(s sect(on is to be borne by the subcontractor,that requirement shall also be specified in the prime contractor's written or published request for sub-bids. 3.The prime contractor's failure to specify bond requirements,in accordance with this subdivision, in the written or published request for sub-blds shall preclude the prime contractor from imposing bond requirements under this section.(Ord. 927§ 1 (part),200Q) 3.30.220 Subletting or subcontracting portion in excess of certain percent of prime contractor's total btd to which no subcontractor was designated in original bid. Subletting or subcontracting of any portlon of the work in excess of one-half of o e percent of the prfine contractor's total bid as to which no subcontractor was designated in the originaf bid shatl only be permitted in cases of public emergency or necessity,and then only after a finding reduced to writlng as a public record of the city setting forth the facts constituting the emergency or necessiry. (Ord.927 1 (part),2000) 3.30.230 Violations of chapter and contracts--Cancellation or penalty-- Notice and hearing. A prime contractor violating eny of the provfsions of this chapter violates his or her contract and the awarding authority may exercise the option, in its own d(scretion,of(1)canceling his or her contract or(2)assessing the prime contractor a penalty in an amount of not more than ten percent of the amount of the subcontract InvoNed, and this penalty shall be deposited fn the fund out of which the prime contract is awarded. In any proceedings under this section the prime contractor shall be entitled to a public hearing and to five days' notice of the time and place thereof. (Ord,927§ 1 (part),2000) 3.30.240 Subcontractor and prime contractor. 84 I 1 As used in this chapter,the word"subcontractor'ahall mean a contractor, within the meaninq of the provisions of Chepter 9(commencing with Sectlon 7000)of Divisfon 3 of the Business end Professions Code,who contracts direcUy with the prtme contractor. (Ord, 927 g 1 (part},2000) 4Pa 3r 85 ExxisiT r LEGAL DESCRIPTION OF DW/AB PROPERTY As to Desert Wells 237, LLC, an undivided 80.2% interest in the property described as follows, and as to Albor Properties III, LP, an undivided 19,8% interest in the property described as follows: PARCELS 1, 2, 3, 4, 5, 6, 7, 10 AND 14 OF PARCEL MAP NO. 31730, AS SHOWN BY MAP ON FILE IN BOOK 211 PAGES 63 THROUGH 75, OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. asa x2.y I-1 86 12/21/Z605 17:28 9496447620 HOUER DEVELOPMENT PAGE 03/04 ARBI'TRATOR AIVD AWARD, IF ANY, MAY BE ENTERED WITH ANY COURT HAVING JURISDICTION AND THE DETERMINATTON AND AWARD, 1F ANY, N1AY THEN BE ENF RCED AMONG THE PARTIES, WITHOUT FURTHER EVII ENTIARY P:ROCEEDINGS, AS IF EN'TERED BY A COURT AT THE CONCLUSTON OF A NDICIAL PROCEEDING TN WHICH NO APPEAL WAS TAKEN. NOTICE: BY INITIALING 1N THE SPACE BELOW THE PARTIES ARE AGREEING TQ HAVE ANY DISPt1TF.LINnER THIS AGREEMENT DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND THE PA.RTIES ARE GIV.ING UP ANY RIGHTS THEY MIGHT POSSESS TO HAVE THE DiSPUTE LTTTGATED TN A COURT 0R NRY TRIAL. BY iN.iTiALjNG iN THE SPACE BELOW THE PARTIES ARE GIVING UP THEIR NDICIAL RIGHTS TO DISCUVERY AND AAPEAL, UNLESS SUCH RIGHTS ARE SPECIFiCALLY TNCLUDED IN THIS AGREEMENT. IF A PARTY REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVIS ON, SUCH 1'ARTY MAY BE COMPELLED TO ARB.ITR.ATE UNDER THE AUTHORITY OF TI CCP. THE PARTIES AGREEMENT TO THIS ARBITRATiON PROViSION IS VOT_.tTNTARY. THE PARTTES HAVE READ AND UNDERSTAND THE'OREGOING AND AG.REE TO SUBMIT DISPUTES A UNDER THIS AGREETv NT TO NEEJTRAL AR.BITRA'1'lON BY PLACING THETR INITIALS HER ' i i outh North City ; ner Owner This Space Intentionally Left Blank; Signatures Begin On Tlie Next Paje] i s;=i s2. 1 Facsimile Received on 12/21/2005 4 :25:Q3 PM 87 DEC-22-2005 THU 07 36 AM CORNERSTONE INVESTORS FAX N0, 760 778 4417 P, 11 ARBITRATOR AND AWARD,IF ANY,MAY BE N'I'flRED WITH ANY COUR'T HAVIl IGJiJRLSDICTIONANDTHEDETERMINATIONANDAWARU,IF ANY.MAY THEN BEENFQRCEDAMONGTHEPARTIES,WITH4UT FURTHER EVLDENTIARYPROCEEDINGS, AS IF ENTEREn BY A COUR AT THE CONCLUSiON OF A NDICiAL PROCEEDING IN WHICH NQ APPEAL WAS TAKEN, NOTICE: BY 1NITIALING IN THE SPACE BELOW THE PARTIES ARE pGREEING TO HAVE ANY DISPUTE UNDEIL THIS ACrREEMENT DECIDED AYNEUTRAY.,ARBITR.ATION AS PR VID D BY CALIFORNIA LAW AND THB PARTI S pRE CIViNG Up ANY RIGHTS THEY MIG'T POSSESS TO HAVE TI DTSPUTE LITIGATEA 1N A COUR1'OR 1URY TR1Al... BY 1NiT1AL1NG iN THB SPACB BELOW THE PARTIES ARE GN1NC LTI'TI EIR N ICIAI..RIGHTS T4 DISCOVERY ANDApPAL, UNL SS SUCH RiGHTS ARE SPECIFICALLY 1NCLUDEA 1N TH1S AGREEMENT. IF A PARTY REFUS S T SUBMIT TO ARBITRATYON AFTER AGREF.ING TO THIS PROVISION, SUCH 1'ARTY MAY BE COMPELLED TO A tgITitATE UNDER THE AUTHORITY'THE CCP. THE PARTJES AGREEMENT TO 1 TS ARgITRA'TION PROVISION IS VOLUNTARY• THE PARTIES HAVE READ AND UNDERSTAND TkIE FOREGOINC AND AGREE TO SUBMTT DISPj.1'!'S a LJNDFR'CHIS AGREEMEENI'T NBUTRAL ARBI TION BY PLACING THEIR INTTIALS HERE: South North City pwner Owner This Spaco IntentionQlly Left Blank; Signatures Begin On The Nexc Page] 85a'82.9 12 Pacsimile Received on 12/22/2005 7:59:46 AM 88 12/21/2005 17:28 9496447620 HOVER DEVELOPI ENT PAGE 04/04 IN WIT'NESS WHEREOF, the parties hereto have execuied this Road Improvement A ree r e t as of the date rst written above. SUU'1 H OWNER: PALM DESERT FUNDING COMPANY, L.P., a Deiaware limited part»ership By: Palm Desert Funding Company,LLC, a Delaware limited liability company, its General Partner By: Pa1m eserc Fundin Company, Inc., a Delaw re corporation, its Mana er By: omas I. Hover, Authorized A ent NORTi l OWI IER:PALM DESERT NORTH 80,LLC, a California limited liability company By: Cornerstone Desert Properties l, LLC, a California limited liability company, its Manager. Dy: Marix.Family Limited Partnership, a Delaware limited Partnership, its Manager By: Marix Family Trust U/D/T dated as of October 12, 2002, as amended, its General Partner By: Michael S. Marix, Trustee Si natures Continue On The Next Page] ssa sz. 13 Facsimile Received on 1?_/21/2005 4 :25:03 PM 89 DEC-22-2005 THU 07;37 AM CORNERSTONE INVESTORS FAX N0, 760 778 4417 P, 12 I1 T WITNESS WHER aF,the parties hereto have executed this Road Improvement Agreemant as of the date flrst writ en above. SOUTH OWNER: PALM DESE]tT FUNDjNG C4MPANY, L.P., a Delaware limited partnerslup gy; Palin Desert Funding Company,T.I-C,a De]aware limited liabiliry campany,its General Partner By: Palm Pesert F nding Campany,Inc.,a Delawara oorporation, its Mat ager By: Thomas i.Hover,Antharized Agant NORTH OWNER; PALM DESER'f NORTH 80,LLC,e C lifomia limited liability company By: Comerstone Deswt Properties Y,L.LC,a Califomia limited liability company,its Ntanage.r• By; Marix Family Limited Partnership,a Dclaware limiud Partnership,its Manager By: Marix Family'itiust U/D/T dated as of October 2,2002,as amended,its Genera)Ptutner By: Mi ael .Marix,"Tn stee Stgnatures Cominue On The Next Page] y,9 13 Facsimile Received on 12/22/2005 7 :59:46 AM 90 RESOLUTION NO. 06- 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT MODIFYING THE RESOLUTION OF INTENTION TO ELIMINATE CERTAIN FACILITIES FROM FINANCING BY PROPOSED CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 UNIVERSITY PARK) RECITALS: WHEREAS, in accordance with a request set forth in a petition signed by the owners of certain land proposed for inclusion in a proposed community facilities district the "Petitioning Landowners"), the City Council (the "City Council") of the City of Palm Desert, California (the "City"), has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 (University Park) and to Authorize the Levy of a Special Tax within City of Palm Desert Community Facilities District No. 2005- 1 (University Park)" (the "Resolution of Intention to Establish District") stating its intention to conduct proceedings to form City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act") to finance certain public facilities to serve the District (the "Facilities"); and WHEREAS, a copy of the Resolution of Intention to Establish District setting forth a description of the proposed boundaries of the District, the Facilities to be financed by the District, including incidental expenses, and the rate and method of apportionment of the special tax proposed to be levied within the District is on file in the office of the City Clerk of the City; and WHEREAS, the City Council has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Incur Bonded Indebtedness Within Proposed City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Intention to Incur Bonded Indebtedness") stating the City Council's intention, acting as the legislative body of the District, to authorize the issuance and sale of one or more series of bonds for the District in maximum aggregate principal amount of $70,000,000 to finance the cost of Facilities; and WHEREAS, the Resolution of Intention to Establish District and Resolution of Intention to Incur Bonded Indebtedness set December 8, 2005 as the date of a public hearing on the establishment of the District, the extent of the District, the furnishing of Facilities to serve the District, the proposed rate and method of apportionment of the special tax within the District, and the proposed debt issue; and P6401.1032\863484.2 1 G:\RDA\Beth Longman\Staff Reports\Yngoyen\CFD 2005-1 Resolutions\Reso Modifying ROI (Palm Desert CFD 2005-1).0OC 91 WHEREAS, a notice of the public hearing was published and was mailed to all landowners proposed to be included in the District in accordance with the Act; and WHEREAS, prior to the date of the public hearing, the Petitioning Landowners made the determination to exclude the development impact fees of the Palm Springs Unified School District and the school improvements to be constructed thereby (the School Facilities") from the list of public facilities to be financed by the District, in the interest of applying a greater portion of the District's financing to the facilities to be owned by the City and the Coachella Valley Water District (the "CVWD"); and WHEREAS, prior to the date of the public hearing, there was filed with the City Council a report containing a description of the facilities necessary to adequately meet the needs of the District and an estimate of the cost of financing such facilities as required by Section 53321.5 of the Act (the "Report"), which Report amends the list of Facilities to delete the School Facilities from the list of public facilities to be financed by the District; and WHEREAS, the aforementioned public hearing was duly continued from December 8, 2005 in the City Council Chamber to 4 p.m. on January 12, 2006 in the City Council Chamber upon a finding by the City Council that, pursuant to Section 53325 of the Act, it is appropriate and necessary to continue such hearing, in order to a) ensure adequate time to address the complexities of the District relating to certain facilities to be financed by the District and owned by the CVWD, and a joint community facilities agreement (the "JCFA") relating thereto, and (b) ensure adequate opportunity for public comment and participation, including without limitation the comment and participation of the CVWD, with respect to the proposed Facilities and JCFA; and WHEREAS, prior to the reconvening of the public hearing on January 12, 2006, it was determined that certain park improvements and park land site acquisition identified in Sections VIII.E. and VIII.F. of Exhibit "A" of the Resolution of Intention to Establish District (the "Parks E and F Improvements"), also described as "Park E" and "Park F," respectively, will not be owned by the City or any other governmental entity and may not be financed by the District by the issuance of its tax-exempt bonds without exceeding applicable limits under federal tax law regarding the amount of bond proceeds reasonably expected to be expended on privately -owned facilities; and WHEREAS, Section 53325 of the Act permits the City Council to modify the Resolution of Intention to Establish District by eliminating proposed facilities, if the City Council makes such modifications at the aforementioned public hearing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT: 1. Recitals. The above recitals are all true and correct. 2. Modification of Resolution of Intention to Establish District. The City Council hereby modifies and amends the Resolution of Intention to Establish District, and P6401.1032\863484.2 2 G: RDA\Beth Longman\Staff Repons\Yrigoyen\CFD 2005-1 Resolutions\Reso Modifying ROI (Palm Desert CFD 2005-1).DOC 92 the list of Facilities therein, to eliminate the School Facilities and the Parks E and F Improvements from the list of authorized Facilities. PASSED AND ADOPTED this 12th day of January, 2006, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Councilmembers Councilmembers Councilmembers Councilmembers Jim Ferguson, Mayor ATTEST: Rachelle D. Klassen, City Clerk P6401.1032\863484.2 3 G:\RDA\Beth Longman\Staff Reports\Yngoyen\CFD 2005-1 Resolutions\Reso Modifying ROI (Palm Desert CFD 2005-1).DOC 93 RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FORM OF A JOINT COMMUNITY FACILITIES FINANCING AGREEMENT BY AND AMONG THE CITY OF PALM DESERT, THE COACHELLA VALLEY WATER DISTRICT, AND PROPERTY OWNERS PERTAINING TO THE CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 UNIVERSITY PARK) RECITALS: WHEREAS, the City Council of the City of Palm Desert (the "City Council") has initiated proceedings to create a community facilities district pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "AcY') for the purpose of providing for the financing of the construction and/or acquisition of certain public facilities. This proposed community facilities district is designated as City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "Community Facilities DistricY'); and WHEREAS, the Coachella Valley Water District (the "DistricY') provides water and sewer service to the property within the proposed Community Facilities District; and WHEREAS, included among the public facilities proposed to be constructed and/or acquired are certain facilities necessary to serve the property within the proposed Community Facilities District and which will be owned, operated and maintained by the District; and WHEREAS, the Act provides that the Community Facilities District may finance facilities to be owned or operated by an entity other than the City of Palm Desert (the City") pursuant to a joint community facilities agreement adopted pursuant to Section 53316.2 of the Act; and WHEREAS, Section 53316.2 of the Act provides that the City Council and the Board of Directors of the District (the "Board of Directors") may enter into a joint community facilities agreement at any time prior to the adoption by the City Council of a resolution of formation creating the Community Facilities District if each legislative body adopts a resolution declaring that such joint community facilities agreement would be beneficial to the residents of the respective district governed by such legislative body; and WHEREAS, the form of a Joint Community Facilities Agreement by and among the City, the District, Desert Wells 237, LLC, a California limited liability company, Palm Desert Funding Company, LP, a Delaware limited partnership, The University Park Partnership, a California general partnership, Shaw/Palm Desert 1, LLC, a California limited liability company, and Sinatra & Cook Project, LLC, a California limited liability company (the "JCFA"), has been presented to this City Council for its consideration; 1 W\Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Palm Desert-Reso Approving JCFA_s DOC PG-I()I.IO i2\8 I 28G-I. 94 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals are all true and correct. Section 2. Declaration. The City Council hereby declares that the JCFA would be beneficial to the residents of the City. Section 3. A proval of JCFA. The form of JCFA as presented to this City Council and on file with the City Clerk is hereby approved. The Mayor is hereby authorized and directed to execute and deliver the JCFA substantially in the form on file with the City Clerk and presented to this meeting, with such additions thereto or changes or insertions therein as may be approved by the Mayor (such approval to be conclusively evidenced by such execution and delivery). PASSED, APPROVED, and ADOPTED this 12th day of January, 2006. Jim Ferguson, Mayor ATTEST: Rachelle D. Klassen, City Clerk 2 W\Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Palm Desert-Reso Approving JCFA_s DOC PG-I()I.IO i2\8 I 28G-I. 95 JOINT COMMUNITY FACILITIES AGREEMENT by and among CITY OF PALM DESERT, COACHELLA VALLEY WATER DISTRICT, DESERT WELLS 237, LLC, PALM DESERT FUNDING COMPANY, LP, THE UNIVERSITY VILLAGE PARTNERSHIP, SHAW/PALM DESERT 1, LLC, AND SINATRA & COOK PROJECT, LLC RELATING TO CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 ( UNIVERSITY PARK) Dated as of 20 R c,s cica„ 12.2s.11 96 JOINT COMMUNITY FACILITIES AGREEMENT BY AND AMONG CITY OF PALM DESERT, COACHELLA VALLEY WATER DISTRICT, DESERT WELLS 237, LLC, PALM DESERT FUNDING COMPANY, LP, THE UNIVERSITY VILLAGE PARTNERSHIP, SHAW/PALM DESERT 1, LLC, AND SINATRA & COOK PROJECT, LLC City of Palm Desert Community Facilities District No. 2005-1 ( University Park) THIS JOINT COMMUNITY FACILITIES AGREEMENT ("Agreement") is made and entered into as of the day of 20_, by and among the COACHELLA VALLEY WATER DISTRICT, County of Riverside, State of California, a county water district CVWD"), the CITY OF PALM DESERT, a municipal corporation ("City"), DESERT WELLS 237, LLC, a California limited liability company ("DW 237"), PALM DESERT FUNDING COMPANY, LP, a Delaware limited partnership ("PDFC"), THE UNIVERSITY VILLAGE PARTNERSHIP, a California general partnership ("UV Partnership"), and SHAW/PALM DESERT l, LLC, a California limited liability company ("Shaw"), and SINATRA & COOK PROJECT, LLC, a California limited liability company ("S&C," and each individually and together with DW 237, PDFC, UV Partnership, and Shaw, as the context may require, the "Property Owner"). RECITALS: A. Property Owner has requested that City form a community facilities district to be known as "City of Palm Desert Community Facilities District No. 2005-1 ( University Park)" the "CFD" or "Community Facilities District") pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"). B. Property Owner, collectively, are the owners of certain real property (i) located within the boundaries of CVWD and the City, (ii) proposed to be included in the boundaries of the CFD, which boundaries are depicted in Exhibit "A-1" hereto (the "Property"), and (iii) respectively owned by each Property Owner as set forth in Exhibit "A-2" hereto. C. Property Owner intends to develop the Property for residential, commercial, office and hotel purposes and has obtained or intends to obtain the necessary development approvals to construct approximately one thousand four hundred (1,400) residential units and approximately sixty (60) acres of commercial, office and hotel land uses. Development of the Property shall be referred to as the "Project." 97 D. The Project will require the payment, pursuant to the rules and regulations of CVWD, as amended from time to time ("CVWD Rules and Regulations"), of certain CVWD Charges (defined below). An amount equal to all or a portion of the CVWD Charges may be paid directly to CVWD from time to time out of Bond Proceeds (defined below) pursuant to this Agreement. E. The Project will also benefit, in whole or in part, from the construction of certain Acquisition Facilities (defined below and described on Exhibit "B" attached hereto). CVWD and the Property Owner agree that any Acquisition Facilities to be constructed by Property Owner shall be eligible for acquisition by CVWD. Property Owner and City agree that the costs thereof shall be eligible for reimbursement out of Bond Proceeds pursuant to the terms of this Agreement. F.In conjunction with the issuance of building permits for the construction of residential dwelling units or commercial, office or hotel buildings within the Project and/or installation of water meters for such residential dwelling units, or commercial, office or hotel buildings, it may be necessary for Property Owner to provide, or cause to be provided, a deposit to cover CVWD Charges to CVWD (the "Deposits") before any Bond Proceeds are available to pay for CVWD Charges. Reimbursement of a Deposit shall be subject to receipt of Bond Proceeds and the Allocation Agreement as more particularly set forth herein. G. The Project will also require certain public improvements to be owned, operated or maintained by the City, or to which the City contributes revenue (the "City Improvements"), which will also be eligible for financing through the CFD. The City Improvements expressly are not subject to the terms of this Agreement, and the construction and funding of the City Improvements shall be governed by the terms of the Acquisition Agreement. H. Pursuant to the request of the Property Owner, the City Council of the City intends to form the CFD pursuant to the Act (defined below) to provide financing of the CVWD Charges, Acquisition Facilities, and City Improvements through the levy of special taxes and issuance of bonds by the CFD. I.City and CVWD are authorized by Section 5;; 1;.5 of the Act to pay for or finance, by means of the CFD, the CVWD Charges, Acquisition Facilities, and City Improvements. This Agreement constitutes a "joint community facilities agreement" within the meaning of Section 5;;16.2 of the Act by and among CVWD, the City, and Property Owner, pursuant to which the CFD, when formed, will be authorized to finance the City Improvements and CVWD Charges and to finance the construction and acquisition of Acquisition Facilities. Pursuant to Section 5;;16.6 of the Act, the Parties hereby agree the responsibility for constructing the Acquisition Facilities is delegated to the Property Owners to the extent set forth herein, and the responsibility for operating the Acquisition Facilities is delegated to CVWD to the extent set forth herein. J.The provision of the City Improvements, Acquisition Facilities, and CVWD Charges is necessitated by the Project, and the Parties hereto find and determine that (i) the residents of the CVWD will be benefited by the payment of CVWD Charges and construction 2 98 and acquisition of the Acquisition Facilities, and (iii) this Agreement is beneficial to the interests of the residents of the City and the CVWD. ARTICLE 1 GENERAL PROVISIONS Section 1.1 Recitals. The above recitals are true and correct and are hereby incorporated by this reference. Section 1.2 Definitions. Unless the context clearly otherwise requires, the terms defined in this Section shall, for all purposes of this Agreement, have the meanings herein specified. a) "Acquisition Agreement" shall mean the Acquisition Agreement(s) between City and Property Owner, or any one of them, relating to the CFD, as such agreement(s) may be amended from time to time. b) "Acquisition Facility" or "Acquisition Facilities" means those sewer and water facilities listed on Exhibit "B" hereto, which are eligible to be constructed by the Property Owner, acquired by C V W D and paid for with Bond Proceeds. c) "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, commencing with California Government Code Section 5;;1 1, c!.s c c/. d) "Acquisition Price" means the amount to be paid out of Bond Proceeds for an Acquisition Facility. e) "Actual Costs" with respect to an Acquisition Facility means the substantiated cost of an Acquisition Facility, which cost includes: (i) the actual hard construction costs (evidenced by payments to parties unrelated to the applicable Property Owner) including labor, materials and equipment costs, (ii) the costs incurred in design, engineering and preparation of plans for such Acquisition Facility, (iii) the fees paid to consultants and government agencies in connection with and for inspection, obtaining permits, licenses or other required governmental approvals associated with such Acquisition Facility, including the costs of the Property Owner Engineer, Field Engineer and Engineer, (iv) a construction management fee of 5% of the costs described in clause (i) above, (v) professional costs such as engineering, legal, accounting, inspection construction staking, materials testing and similar professional services associated with such Acquisition Facility, and (vi) costs of payment, performance of maintenance bonds, and insurance costs (including the costs of any title insurance) associated with such Acquisition Facility; provided, however, with respect to any Acquisition Facility listed under heading I.E. of Exhibit "B" hereto (i.e., well sites), "Actual Costs" shall also include the value of any real property or interests therein that (1) are required for the construction or operation of any such Acquisition Facility and (2) are required to be conveyed with such Acquisition Facility, in an amount equal to the fair market value of such real property or interest therein. 99 Additional Advance" shall have the meaning ascribed to the term in Section 2.4(b). g) "Advance" shall have the meaning ascribed to the term in Section 2.4(b). h) "Agreement" means this Joint Community Facilities Agreement. i) "Bond Proceeds" or "Proceeds of the Bonds" shall mean those net project or construction funds generated by the sale of the Bonds. j) "Bond Resolution" means that resolution, resolution supplement, fiscal agent agreement, indenture of trust or other equivalent document(s) providing for the issuance of the Bonds. k) "Bonds" shall mean those bonds or other securities issued by, or on behalf of, the CFD, as authorized by the qualified electors within the CFD. 1) "CFD" or "Community Facilities District" means the City of Palm Desert Community Facilities District No. 2005-1 (University Park). m) "City Improvements" means those certain public improvements to be owned, operated or maintained by the City or to which the City contributes revenue, which will also be eligible for financing through the CFD, including facilities financed pursuant to development impact fees. n) "Contractors" shall mean any contractors or sub-contractors employed for, or in connection with, the construction of the Acquisition Facilities. o) "CVWD Charges" means water connection fees, water system back-up facilities charges, sewer connection fees, annexation fees, sewer treatment capacity charges and all components thereof of CVWD imposed upon the Project to pay for the provision of water and sewer services to and the construction of CVWD water and sewer facilities required to serve the Project. p) "CVWD Facilities Fund" means the fund, account or sub-account of the CFD (regardless of its designation within the Bond Resolution) into which a portion of the Bond Proceeds may be deposited in accordance with the Bond Resolution and Acquisition Agreement to finance the construction and acquisition of the Acquisition Facilities and to pay CVWD Charges. q) "CVWD Representative" means the CVWD General Manager or any designee thereof. r) "CVWD Rules and Regulations" means the rules, regulations, procedures and requirements of the CVWD, as amended from time to time. s) "Deposits" means an amount deposited with CVWD by any Property Owner prior to the disbursement of Bond Proceeds to CVWD for CVWD Charges and which 4 100 may be eligible for refund by CVWD to the Property Owner who paid such Deposits (or its designee) upon the sale of Bonds, subject to the Allocation Agreement. t) "Engineer" means the engineering firm or in-house personnel used by CVWD to determine the value of an Acquisition Facility to be acquired with Bond Proceeds. u) "Facilities" means the City Improvements, Acquisition Facilities and CVWD Charges. v) "Field Engineer" shall have the meaning ascribed to the term in Section 3.1(a). w) "Party" or "Parties" shall mean any one or all of the parties to this Agreement, including the CFD which, upon its formation, shall be considered to be a party to this Agreement and bound by its provisions. x) "Plans and Specifications" shall mean the plans and specifications for the design and construction of an Acquisition Facility as approved by CVWD, which approval shall not be unreasonably withheld. y) "Project" means development of the Property as described in Recital C of this Agreement. z) "Property" means the real property depicted in Exhibit "A-1" hereto. aa) "Rate and Method" means the Rate and Method of Apportionment of the Special Tax for the CFD authorizing the levy and collection of special taxes pursuant to proceedings undertaken for the formation of the CFD pursuant to the Act. bb) "State" means the State of California. cc) "Special Taxes" means the special taxes authorized to be levied and collected within the CFD pursuant to the Rate and Method. dd) "Substantially Complete" or "Substantial Completion" with respect to an Acquisition Facility means that such Acquisition Facility is substantially complete in accordance with its Plans and Specifications and is available for use by the public for its intended purpose, notwithstanding any final "punch list" items still required to be completed, unless such items are required for the safe operation of such Acquisition Facility, and shall be based upon approval of CVWD's inspectors, which shall not be unreasonably withheld. 5 101 ARTICLE 11 FORMATION OF CFD AND ISSUANCE OF BONDS Section 2.1 Proposed Formation of the CFD. a) The City, pursuant to the written request of the Property Owner, has initiated proceedings pursuant to the Act for the formation of the CFD, the authorization of the Special Taxes, and the authorization of Bonds on behalf of the CFD. Nothing contained herein shall be deemed to limit the discretion of the City in that regard and the City shall have no liability to CVWD or any Property Owner if the CFD is not formed, if the Special Taxes or Bonds are not authorized by the qualified electors within the CFD, or if Bonds are not issued by the CFD. b) City hereby agrees that the name "Coachella Valley Water District" or the initials "CVWD" shall not appear in the name of the Community Facilities District or on any property tax billing. Further, City agrees that any property tax billing will not indicate that the billing or any portion thereof is for water and/or sewer facilities and/or fees. c) CVWD is not directly or indirectly approving or responsible in any way whatsoever for (i) the formation of the Community Facilities District, (ii) the levying of any special tax with respect to the Community Facilities District, or (iii) the issuance of the Bonds. CVWD shall not be responsible in any way whatsoever for any cost or expense for the formation of the Community Facilities District or any matter whatsoever having to do with the same, except as specifically provided herein. Section 2.2 Issuance and Sale of Bonds. In the event that the CFD is formed, the City Council of the City, acting as the legislative body of the CFD, may in its sole discretion finance, among other things, the Acquisition Facilities and the CVWD Charges by issuing the Bonds. The election by the City to finance or not to finance the Acquisition Facilities and the CVWD Charges and/or the fact that there may not be sufficient Bond Proceeds to pay the CVWD Charges shall in no way relieve the owner of any Property from its obligation with respect to paying fees and charges, including without limitation, CVWD Charges with respect to the development of the Property or to otherwise comply with the CVWD's Rules and Regulations. The purpose of this Agreement is to provide, pursuant to Sections 5;;16.2 and 5;;16.6 of the Act, the allocation and distribution among the Parties of the proceeds of the Special Taxes and any Bonds secured thereby and issued. The CVWD and each Property Owner acknowledge that the decision of the City Council of the City to form the CFD, to include any particular improvement or facility among the improvements and facilities to be financed by the CFD, or to cause the CFD to issue Bonds is a legislative action, and the City may not enter into an agreement to obligate the City Council to exercise its legislative discretion in a particular manner or for a particular result. This Agreement does not, therefore, in any way create a contractual, legal, or equitable obligation of, or commitment by, the City to approve the formation of the CFD, to cause the CFD to issue Bonds, to construct, or cause the construction of, any Acquisition Facilities, or to finance all or part of the C V W D Charges. 6 102 In the event the CFD is formed and the Special Taxes and Bonds are authorized, the City Council of the City, acting as the legislative body of the CFD, may, in accordance with its adopted policies, adopt the Bond Resolution and issue the Bonds to finance the Facilities. Section 2.3 Bond Proceeds. a) Prior to the issuance of the Bonds by the CFD, each Property Owner will agree in writing among themselves (the "Allocation Agreement") as to the priority and allocation of the Bond Proceeds that the City makes available to finance the CVWD Charges and/or the Acquisition Facilities. The Allocation Agreement will provide for the priority and allocation of the Bond Proceeds, and the priority in, and amount of, the return of the Deposits, in the event that such Bond Proceeds are not sufficient to finance all of the City Improvements, the CVWD Charges and the Acquisition Facilities. The distribution e of the Bond Proceeds for Acquisition Facilities and CVWD Charges, and the return of the Deposits, set forth in this Agreement shall be subject in all respects to the priority set forth in Allocation Agreement. The Property Owner shall submit the Allocation Agreement to the City and CVWD prior to requisitioning any Bond Proceeds. In the absence of such an Allocation Agreement, the City shall allocate Bond Proceeds to the CVWD Facilities Fund in the following order to priority (with the estimated costs of the higher priority Facility being funded and/or reserved before funding and/or reservation of the estimated costs of the next highest priority Facility): first to finance Acquisition Facilities that are back-bone infrastructure, (i.e., the Water Improvements listed in Exhibit "B" under Items A-E, inclusive, and the Sewer Improvements listed in Exhibit "B" under items A-D, inclusive); and second, to finance CVWD Charges and in-tract Acquisition Facilities. The Property Owner hereby agrees that CVWD shall have no liability for complying with or failure to comply with any term, condition or provision in the Allocation Agreement, nor shall CVWD be responsible for interpreting the same. Property Owner hereby waives any claim or defense it may have against, and releases CVWD with respect to the Allocation Agreement for any reason whatsoever, including, but not limited to, compliance with or failure to comply with any term, condition or provision therein. The foregoing waiver and release shall not apply to the extent a court of competent jurisdiction finds that CVWD is grossly negligent. In furtherance of this intention, Property Owner acknowledges that it/they is/are familiar with .5'c c i,fl 1-2 of the ivil('odc of the State of California. A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." Property Owner hereby waives and relinquishes any right or benefit which it/they has/have or may have under .5'c c i,fl 1-2 of the ('i il ('cic of the State of California to the full extent that it/they may lawfully waive all such rights and benefits pertaining to released matters. In connection with such waiver and relinquishment, Property Owner acknowledges that it/they are aware that it/they may hereafter discover claims presently unknown or unsuspected, or facts in addition to or different from those which it/they now know or believe to be true, with respect to the released matters. Nevertheless, it is the intention of Property Owner to fully, finally and forever settle and release all such matters, and all claims relative to the released matters. 7 103 Notwithstanding any provision in the Allocation Agreement, CVWD shall not have any obligation to service that portion of the Property owned by any Property Owner , unless and until CVWD receives the CVWD Charges allocated to that portion of the Property to be serviced, and such Acquisition Facilities as shall be determined by CVWD are constructed and accepted as shall be required hereunder (whether or not such Acquisition Facilities to be constructed by such Property Owner hereunder) and such Property complies with the CVWD Rules and Regulations. b) In conjunction with the recording of the final subdivision maps for the Property, the issuance of building permits for the construction of homes or commercial, office or hotel buildings within the Property and/or installation of water meters for such homes or commercial, office or hotel buildings, it may be necessary for the applicable Property Owner to make, or cause to be made, Deposits before Bonds are issued. Subject to the Allocation Agreement, in the event (a) the City elects to finance the CVWD Charges (in whole or in part), and (b) the City determines that Bond Proceeds exist to finance the CVWD Charges (in whole or in part) upon the issuance and sale of the Bonds, such Property Owner and CVWD may execute and submit a payment request, in substantially the form attached hereto as Exhibit "C", to the CFD requesting disbursement to CVWD of an amount not to exceed the amount on deposit in the CVWD Facilities Fund which is reserved for the payment of CVWD Charges. As proceeds of the Bonds are transferred to CVWD to fund CVWD Charges, a Property Owner that is participating in the financing of CVWD Charges on its Property shall receive a credit, in an amount equal to the amount of such Bond Proceeds so received, against the CVWD Charges required to be paid by the owner of Property in connection with the development of the Property. Nothing herein shall supersede the obligation of any owner of the Property to pay CVWD Charges to CVWD when due. Section 2.4 Responsibilitv for CVWD Char es and Acquisition Facilities. a) The Parties hereto acknowledge and agree that the final responsibility for the payment of the CVWD Charges on a parcel of Property lies with the owner of that parcel of Property, and the design, construction and dedication of Acquisition Facilities to be constructed by Property Owner lies with the applicable Property Owner. b) If the amounts derived from Bond Proceeds deposited in the CVWD Facilities Fund and reserved for the financing of CVWD Charges, including investment earnings thereon, if any are not sufficient to fund the total cost of the CVWD Charges, the applicable Property Owner (as determined by the Allocation Agreement) shall, within ten (10) days of a written request from C V W D, deposit with C V W D, such sum, when added to the Bond Proceeds received by CVWD, shall be satisfactory in CVWD's reasonable discretion, to be sufficient to pay all of the CVWD Charges imposed upon such Property Owner's Property ("Advance"). A Property Owner shall have no right vested whatsoever to receive water and/or sewer service at the applicable Property until the CVWD Charges for the Property owned by such Property Owner have been tendered in full. The failure of another Property Owner to pay or provide for the payment of the CVWD Charges shall not impact the development of the Property owned by another Property Owner who has paid, or provided for the payment of, all CVWD Charges on its Property. The Advance shall be held by CVWD to finance the CVWD Charges for the Project, provided that CVWD shall first exhaust all available Bond Proceeds prior to the use of the 8 104 Advance. Each Property Owner hereby authorizes C V W D to use or apply any Advances provided by such Property Owner to finance the applicable CVWD Charges for such Property Owner's Property. No Property Owner shall be entitled to interest on any Advance. Any portion of any Advance remaining after funding all the CVWD Charges for the Property shall be returned to applicable Property Owner within ten (10) business days. If additional Advances are necessary, the applicable Property Owner shall, within ten (10) business days after written demand therefor, deposit cash with CVWD in an amount sufficient to fund such additional CVWD Charges ("Additional Advances"). As any Advances and Additional Advances are transferred to CVWD to pay CVWD Charges, the applicable Property Owner shall receive a credit in the amount transferred against the payment of CVWD Charges owing to CVWD with respect to such Property Owner's portion of the Project. c) All CVWD Charges shall be paid in such amounts and at such times as required by CVWD's Rules and Regulations. Any Property Owner may elect to make one or more Deposits before Bonds are issued to pay the CVWD Charges to CVWD when due. No Property Owner shall be entitled to interest on any such Deposits. In the event any Property Owner makes such Deposits as set forth herein, the full amount of such Deposits shall be reimbursed to Property Owner if and when Bonds are issued and City has delivered such Bond Proceeds to CVWD to the extent the Bond Proceeds are sufficient to pay all CVWD Charges. Notwithstanding the foregoing, if Bond Proceeds deposited in the CVWD Facilities Fund and reserved to pay CVWD Charges are insufficient to fund the entire CVWD Charges applicable to any Property Owner's portion of the Project, the applicable Property Owner (as determined by the Allocation Agreement) shall be required to deposit Advances to offset the shortage in accordance with the terms set forth herein. In the event Bonds are not issued or Bonds are not issued in an amount sufficient to pay the CVWD Charges for the Property, CVWD shall have no obligation to refund the Deposit(s) and CVWD shall have no liability to reimburse any amounts previously advanced by Property Owner, except to such extent that Bond Proceeds deposited in the CVWD Facilities Fund and reserved to pay CVWD Charges (if any) and Deposit(s) made by Property Owner exceed the amount due and owing on the CVWD Charges, then CVWD shall refund any overage to the applicable Property Owner, subject to the Allocation Agreement. d) In addition to financing the CVWD Charges described above, the Parties acknowledge that CVWD may require the Property Owner, or any of them, pursuant to the CVWD Rules and Regulations, to design, construct and dedicate to CVWD Acquisition Facilities as a condition to providing water and sewer service to the Property. The Parties also agree and acknowledge that all responsibility and obligation for the design, construction and dedication of such Acquisition Facilities to CVWD, in accordance with all applicable statutes and the CVWD Rules and Regulations, shall be and remain the responsibility of the Property Owner. e) CVWD agrees to utilize or apply funds provided to it by the CFD in accordance with the Act and other applicable law, and as set forth herein and in the Allocation Agreement, for the CVWD Charges and Acquisition Facilities to be constructed by Property Owner. Property Owner shall indemnify, defend, and hold harmless CVWD, its officers, directors, employees, agents, officials, representatives, successors and assigns (each an Indemnified Person", and collectively the "Indemnified Persons") and each and every one of 9 105 them from and against all actions, causes of action, liabilities, costs, damages, claims, losses or expenses of every type and description (including without limitation attorneys' fees) to which they may be subjected or put, whether known or unknown, existing or potential, anticipated or unanticipated, by reason of, or resulting or arising from this Agreement, including without limitation, the following: (i) any act or omission of Property Owner under this Agreement, including, but not limited to, any act or omission by Property Owner's consultants, employees, agents, contractors, subcontractors and anyone directly or indirectly employed by Property Owner, or anyone for whose acts any of them may be liable (collectively, "Representatives"), in connection with the planning, design, construction or installation of the Acquisition Facilities; ii) the establishment of the Community Facilities District; (iii) the levy of Special Taxes; (iv) the issuance of Bonds; (v) the financing of all or a portion of the CVWD Charges and Acquisition Facilities from Bond Proceeds; (vi) any disclosure made in connection with the offering and sale of the Bonds or any continuing disclosure made at any time with respect to the Bonds, or any matter related thereto; (vii) any violation or alleged violation, breach or alleged breach by Property Owner or its Representatives of this Agreement; (viii) any Indemnified Person's performance of its obligations under this Agreement; (ix) any property damage, bodily injury or death; (x) the design, engineering, construction and installation of the Acquisition Facilities; and (xi) the nature or physical condition of the Acquisition Facilities or any land conveyed to the CVWD hereunder (including, but not limited to, the presence of any hazardous materials thereon or therein); provided, however, that Property Owner shall not be required to indemnify an Indemnified Person as to actions, causes of action, liabilities, costs, damages, claims, losses or expenses of every type and description (including without limitation attorneys' fees) resulting from gross negligence or willful misconduct of such Indemnified Person. The foregoing indemnity includes without limitation, costs arising from a legal challenge to the CFD and this Agreement. The CVWD may make all decisions with respect to its representation in any legal proceeding covered by this section 2.4. If the Property Owner fails to do so, CVWD shall have the right, but not the obligation, to defend the same and charge all of the direct or incidental costs of such defense, including any fees and costs, to and recover the same from the Property Owner. Property Owner shall indemnify, defend and hold harmless the City and the CFD pursuant to the Acquisition Agreement. City acknowledges that it is solely responsible for the formation, implementation and administration of the CFD (subject to the Property Owner's indemnification and hold harmless of the City pursuant to the Acquisition Agreement) and that CVWD involvement is strictly limited to approval of this Agreement, consent to the financing of CVWD Charges with the proceeds of the Special Taxes and any Bonds secured thereby and issued. The Property Owner's obligations hereunder shall survive termination of this Agreement. Section 2.5 Responsibilitv for Debt Service or Special Taxes. CVWD shall have no obligation, responsibility, or authority with respect to the issuance and sale of the Bonds, the Bond Proceeds available to finance the construction and acquisition of the Acquisition Facilities and to pay CVWD Charges, the payment of the principal and interest on the Bonds, or for the levy of the Special Taxes to provide for the payment of principal and interest thereon. The CFD shall have the sole authority and responsibility for all such matters. 10 106 The Parties hereto specifically agree that the liabilities of the CFD, including liabilities, if any, of the CFD pursuant to the documents providing for the issuance of Bonds, including the Bond Resolution, shall not be or become liabilities of CVWD. Section 2.6 Administration of the CFD. The City shall have the power and duty to provide for the administration of the CFD once it is formed, subject to the terms hereof, the Bond Resolution, and the Acquisition Agreement, including employing and compensating all consultants for such administration and providing for the various other administration duties set forth in this Agreement. It is understood and agreed by Parties hereto that CVWD will not be considered a participant in the proceedings relative to formation of the CFD or the issuance of the Bonds, other than as a Party to this Agreement. ARTICLE 111 CONSTRUCTION AND ACQUISITION OF ACQUISITION FACILITIES Section 3.1 Construction of Acquisition Facilities bv Propertv Owner. The following provisions of this Article III shall apply solely with respect to those Acquisition Facilities to be constructed by any Property Owner and acquired by CVWD with Bond Proceeds: a) Each Property Owner shall employ, at its sole cost and expense, subject to potential reimbursement, a qualified professional engineering firm ("Property Owner Engineer") to plan, design and prepare the Plans and Specifications for such Acquisition Facilities to be completed by such Property Owner in full accordance with CVWD's design criteria and standards. The Plans and Specifications shall be subject to CVWD approval, which shall not be unreasonably withheld. In the event CVWD disapproves the Plans and Specifications, such Property Owner shall cause the Property Owner Engineer to modify the Plans and Specifications in accordance with the reasons given for disapproval and shall resubmit the revised Plans and Specifications to CVWD for approval or disapproval. The foregoing procedure shall be continued until the Plans and Specifications have been approved by CVWD. CVWD agrees to process any Plans and Specifications for approval with such diligence and in such time as CVWD accords customers similarly situated. The cost and expense of CVWD's review (including but not limited to, agents, employees and independent contractors) shall be paid by Property Owner to CVWD. Property Owner represents that the Plans and Specifications will conform to all applicable Federal, State and local governmental rules, ordinances, regulations and all applicable environmental laws. b) A qualified engineering firm (the "Field Engineer") shall be employed by the applicable Property Owner to provide all field engineering surveys determined to be necessary by the CVWD inspection personnel. The Field Engineer shall promptly furnish to CVWD a complete set of grade sheets listing all locations, offsets, etc., in accordance with good engineering practices, and attendant data and reports resulting from the Field Engineer's engineering surveys and/or proposed facility design changes. CVWD shall have the right, but not the obligation, to review, evaluate and analyze whether such results comply with applicable specifications. 11 107 c) The cost of all surveying, compaction testing and report costs associated with such Acquisition Facilities furnished and constructed by any contractors or sub-contractors (collectively, Contractors") shall be paid for by the applicable Property Owner, and the costs of such work shall be eligible to be reimbursed from the CVWD Facilities Fund. d) CVWD shall not be responsible for conducting any environmental, archaeological, biological, or cultural studies or any mitigation requirements related to the Acquisition Facilities to be constructed by Property Owner that may be requested by appropriate Federal, State, and/or local agencies. Property Owner shall, at its sole cost and expense, be responsible for compliance with all environmental laws and all requirements of the Federal Endangered Species Act and the California Endangered Species Act, arising out of or in connection with the planning, design, construction and installation of the Acquisition Facilities to be completed by a Property Owner and for compliance with all conditions and mitigation measures of each consent which must be satisfied for the purpose of the planning, design, construction and installation of the Acquisition Facilities. The term environmental laws" shall include, without limitation, the California Environmental Quality Act and all other applicable State and Federal environmental laws. Any such work shall be paid for and conducted by, or on behalf of, the applicable Property Owner, and the costs of such work shall be eligible to be reimbursed from the CVWD Facilities Fund. Section 3.2. Construction By Property Owner. a) Following receipt of CVWD's written approval of the Plans and Specifications, the applicable Property Owner shall, or shall employ a licensed contractor or contractors to construct and complete the Acquisition Facilities to be completed by such Property Owner at no cost or expense to District and in accordance with the laws, rules and regulations of all governmental bodies and agencies having jurisdiction over the Acquisition Facilities. The Acquisition Facilities shall be installed in strict compliance with the Plans and Specifications. Any deviations from the approved Plans and Specifications must be approved by CVWD, in writing. b)Each Property Owner shall, at its sole cost and expense, apply for and obtain all necessary consents, approvals, permits, authority and entitlements as shall be required for the design, construction and installation of the Acquisition Facilities to be completed by such Property Owner, if any, from all appropriate governmental authorities. Each Property Owner shall directly pay all costs associated with the construction of the Acquisition Facilities to be completed by such Property Owner, including but not limited to, furnishing of materials and such Property Owner shall keep CVWD free and harmless from all such costs. c) Each Property Owner shall, at its sole cost and expense, be required to furnish labor and material payment bonds and contract performance bonds in an amount equal to one hundred percent (100%) of the contract price for the Acquisition Facilities to be completed by such Property Owner naming the Property Owner, City, CFD and CVWD as obligees and issued by insurance or surety companies approved by CVWD. All such bonds shall be in a form approved by CVWD. 12 108 d)For each Property Owner constructing Acquisition Facilities, such Property Owner shall deliver to CVWD a Certificate of Insurance evidencing coverage for "builder's risk," evidence of employer liability insurance with limits of at least One Million Dollars 1,000,000.00) per occurrence and evidence of commercial general liability insurance automobile and general liability) with limits of at least Two Million Dollars ($2,000,000.00) per person/per occurrence. Such Property Owner shall maintain, keep in force and pay all premiums required to maintain and keep in force all insurance at all times during which such work is in progress. The general liability insurance to be obtained by the Property Owner shall name City, CFD and CVWD as additional insureds. Such Property Owner shall further maintain and provide evidence of worker's compensation insurance coverage as provided by law. e) Each Property Owner shall comply with such other reasonable requirements relating to the construction of the Acquisition Facilities to be completed by such Property Owner which CVWD may impose by written notification delivered to the Property Owner at any time, either prior to the receipt of bids by such Property Owner for the construction of the Acquisition Facilities to be completed by such Property Owner, or, to the extent required as a result of changes in applicable laws, during the progress of construction thereof. Each Property Owner shall, at the time CVWD acquires the Acquisition Facilities to be completed by such Property Owner, grant to CVWD by appropriate instruments prescribed by CVWD, all easements across private property and/or fee title ownership deeds and/ or public access or rights-of-way which may be necessary for the proper operation and maintenance of the Acquisition Facilities to be completed by such Property Owner, or any part thereof. The easements and/or fee title shall be in a width and at such locations as shall be acceptable to CVWD. Each Property Owner shall ensure that all monetary liens, including deeds of trust and mortgages are subordinated to the easements and reconveyed as to the fee title ownership. g)Upon completion of the Acquisition Facilities to be completed by such Property Owner and completion of the final inspection, testing and written assurance thereof by CVWD, the applicable Property Owner shall execute and deliver a bill of sale in the form and content acceptable to CVWD. The bill of sale shall convey title of the Acquisition Facilities to be completed by such Property Owner to CVWD. The Acquisition Facilities to be completed by such Property Owner shall be transferred to CVWD free of all liens and encumbrances. Nothing contained herein shall require CVWD to accept the Acquisition Facilities to be completed by such Property Owner, if such facilities are Substantially Complete. CVWD shall only accept such facilities if the Acquisition Facilities to be completed by such Property Owner are complete, including all punch list items that need to be completed and/or corrected. h) The applicable Property Owner warrants and represents to CVWD that the Acquisition Facilities to be completed by such Property Owner shall be free from construction defects (and shall correct or cause to be corrected any such defects). The applicable Property Owner shall provide a two (2) year bond (following final acceptance by CVWD of the Acquisition Facilities to be completed by such Property Owner) reasonably acceptable in form and substance to CVWD for such defects in materials and workmanship, which appear within said period. Such defects will be repaired, replaced or corrected by the applicable Property Owner and/or the surety, at no cost to CVWD. The applicable Property Owner and/or the surety shall commence such repair, replacement or correction of any such defects within forty-eight 13 109 48) hours after written notice thereof from CVWD to the applicable Property Owner. Notwithstanding the above-provided forty-eight (48) hour period, CVWD shall have the unqualified right to immediately make any emergency repairs necessary as determined by CVWD, in its sole and absolute discretion, to eliminate any threat to the public's health, safety and welfare, at such Property Owner's sole cost and expense and shall complete such repairs, replacement or correction as soon as practicable. Any warranties, guarantees or other evidences of contingent obligations of third persons with respect to the Acquisition Facilities shall be delivered to CVWD as part of the transfer of title. i) After the acceptance of the Acquisition Facilities, all permits, plans and operating manuals relating thereto, shall become the sole property of CVWD, at no cost to CVWD, subject to any warranty work. On the acceptance of the Acquisition Facilities by CVWD, the applicable Property Owner shall deliver to CVWD, at no cost to CVWD, all surveys and as-built drawings associated with the construction of the Acquisition Facilities. j) CVWD shall have the right to review all books and records of Property Owner pertaining to costs and expenses incurred by the Property Owner for the design and construction of the Acquisition Facilities. Section 3.3 Public Works Requirements. In order to ensure that the Acquisition Facilities to be constructed by the Property Owner, completed after formation of the CFD, and acquired with Bond Proceeds will be constructed as if they had been constructed under the direction and supervision, or under the authority of, CVWD, so that they may be acquired by CVWD pursuant to Government Code Section 5;;1;.5, the applicable Property Owner shall require Contractors to pay prevailing wages and to otherwise comply with applicable provisions of the Labor Code, the Government Code, the Public Contract Code, and the Civil Code as they relate to public works projects (including without limitation Sections 3247 and 3248 of the Civil Code requiring the filing of a payment bond (and naming the City, the CFD, and CVWD as beneficiaries), and as required by the procedures and standards of CVWD with respect to the construction of its public works projects. The applicable Property Owner shall provide proof to CVWD, at such intervals and in such form as the CVWD Representative may require, that the foregoing requirements have been satisfied as to all of the Acquisition Facilities to be constructed by such Property Owner, acquired by CVWD, and paid for with Bond Proceeds. Section 3.4 Inspection; Completion of Construction. CVWD shall have the right to inspect, or cause to be inspected, the construction of the Acquisition Facilities constructed by the Property Owner. CVWD's personnel shall have access to the site of the work at all reasonable times for the purpose of accomplishing such inspection. Any inspection completed by CVWD shall be for the sole use and benefit of CVWD and neither Property Owner, nor any third party shall be entitled to rely thereon for any purpose. CVWD does not undertake or assume any responsibility for or owe a duty to inspect, review or supervise the creation of the Acquisition Facilities. Upon Substantial Completion of the construction of such Acquisition Facilities by an applicable Property Owner, such Property Owner shall notify the 14 110 CVWD Representative in writing that the construction of such Acquisition Facilities has been Substantially Completed. The cost and expense of CVWD's inspection (including, but not limited to, agents, employees and independent contractors) shall be paid by such Property Owner to CVWD. Upon receiving such written notification from the Property Owner that construction of any of the Acquisition Facilities by such Property Owner has been completed and final inspection, testing and written assurance thereof has been completed, CVWD shall accept such Acquisition Facilities. Upon receiving such notification, the Property Owner shall forthwith file with the County Recorder of the County of Riverside a Notice of Completion pursuant to the provisions of Section 3093 of the Civil Code. The Property Owner shall furnish to the CVWD Representative a duplicate copy of each such Notice of Completion showing thereon the date of filing with the County Recorder. Section 3.5 Liens. Prior to the acceptance of an Acquisition Facility by CVWD, the applicable Property Owner shall provide to the CVWD Representative such evidence or proof as CVWD shall require that all persons, firms and corporations supplying work, labor, materials, supplies and equipment on behalf of such Property Owner for the construction of an Acquisition Facility has been paid, and that there are no claims by or on behalf of any such person, firm or corporation. Section 3.6 Acquisition, Acquisition Price; Source of Funds. Provided the applicable Property Owner has complied with the requirements of this Agreement, CVWD agrees to acquire the Acquisition Facilities from the applicable Property Owner. Nothing contained herein shall require (a) the CFD or CVWD to pay, or the City to cause the CFD to pay, any amount for any Acquisition Facilities (nor shall CVWD be required to request any such payment) or (b) CVWD to provide water and/or sewer service to the Project, until the Acquisition Facilities have been conveyed to CVWD pursuant to the terms contained herein. Subject to the Allocation Agreement, the price to be paid by the CFD for the acquisition of such Acquisition Facilities by CVWD (the "Acquisition Price") shall be the lesser of(i) the value of the Acquisition Facilities or (ii) the total of the Actual Costs of the Acquisition Facilities. The applicable Property Owner shall transfer ownership of the Acquisition Facilities to CVWD by grant deed, bill of sale or such other documentation as the CVWD Representative may require. Upon the transfer of ownership of the Acquisition Facilities or any portion thereof from such Property Owner to CVWD, CVWD shall be responsible for the maintenance of the Acquisition Facilities or the portion transferred. Only the Property Owner that completes the Acquisition Facility is eligible to receive the Acquisition Price for such Acquisition Facility. For purposes of determining the Acquisition Price to be paid by the CFD for the acquisition of the Acquisition Facilities by CVWD, the value of such improvements shall be the amount determined by the engineering firm retained by CVWD for such purpose (the "Engineer"), to be the value of the Acquisition Facilities based on the Actual Costs submitted by the Property Owner, as hereinbefore specified; provided, however, that if the Engineer determines that such Actual Costs, or any of them, are excessive and that the value of the Acquisition Facilities is less than the total 15 111 amount of such Actual Costs, the Acquisition Price to be paid by the CFD for the acquisition of the Acquisition Facilities shall be the value thereof as determined by the Engineer. Upon completion of the construction of any Acc uisition Facilities by any Property Owner, the applicable Property Owner shall deliver to CVWD copies of the contract(s) with the Contractor(s) who have constructed the Acquisition Facilities or other relevant documentation with regard to the payments made to such Contractor(s) for the construction of such Acquisition Facilities, and shall also provide to CVWD copies of all invoices, a purchase orders, canceled checks (or other proof of payment) with respect to all supplies and materials purchased for the construction of such Acquisition Facilities. CVWD shall require the Engineer to complete its determination of the value of the Acquisition Facilities as promptly as is reasonably possible. The Acquisition Price of any Acquisition Facilities may be determined and paid out of the CVWD Facilities Fund prior to transfer of ownership of the Acquisition Facilities to CVWD upon a determination of Substantial Completion of such Acquisition Facility. The applicable Property Owner shall submit a payment request form to the CFD which must also contain therewith approval of CVWD, which approval shall not be unreasonably withheld. Notwithstanding the preceding provisions of this section, the sole source of funds for the acquisition by CVWD of the Acquisition Facilities or any portion thereof shall be the Bond Proceeds made available by the CFD pursuant to Section 2.3 above, and the City reserves the right to make an independent and final determination of the Acquisition Price of each Acquisition Facility in accordance with the Acquisition Agreement. The amount of the Acquisition Price actually paid for an Acquisition Facility will be determined by the Allocation Agreement and the amount ofthe Bond Proceeds deposited in the CVWD Facilities Fund and reserved for the financing of the Acquisition Facilities. If for any reason the proceedings for the formation of the CFD are not completed or the Bonds are not sold, CVWD shall not be required to acquire any Acquisition Facilities from the Property Owner. In such event, the Property Owner shall complete the design and construction and offer to CVWD ownership of such portions of Acquisition Facilities as are required to be constructed by the Property Owner as a condition to service for the Property or any other agreement between Property Owner and C V W D, but need not construct any portion of the Acquisition Facilities which it is not so required to construct. Section 3.7 Maintenance. Prior to the transfer of ownership of an Acquisition Facility by any Property Owner to CVWD, as provided in Section 3.5 hereof, the applicable Property Owner shall be responsible for the maintenance thereof and shall maintain and transfer such Acquisition Facility to CVWD in as good condition as the Acquisition Facility was in at the time the Property Owner notified the CVWD Representative pursuant to Section 3.3 hereof that construction of same had been Substantially Completed in accordance with the Plans and Specifications. The Parties agree that, except as to the payment bond provisions set forth in Section 3.2 hereof, the construction and acquisition of the Acquisition Facilities to be constructed by a Property Owner is a matter between the applicable Property Owner and CVWD only, and that the City and the CFD shall have no responsibility for on-site inspection or monitoring or for certifying that the provisions of Article III of this Agreement be satisfied. 16 112 Section 3.8 CFD Construction. In the event the City and/ or Community Facilities District plans and/or constructs the Acquisition Facilities (or any portion thereo, the terms and conditions of Article IV shall apply to the City and/or Community Facilities District standing in place and stead of Property Owner. ARTICLE IV TERM AND TERMINATION Section 4.1 Effective Date. This Agreement shall become effective and of full force and effect as of the date set forth in the first paragraph of this Agreement ("Effective Date") provided it is approved by each Property Owner, the City Council of the City, and the governing board of CVWD, to be confirmed by the execution hereof by the authorized representatives of the Parties hereto. Section 4.2 Termination. In the event that the City has not formed the CFD and sold an initial series of Bonds prior to twelve (12) months after the Effective Date of this Agreement, this Agreement shall automatically terminate and be of no further force and effect. ARTICLE V ADDITIONAL GENERAL PROVISIONS Section 5.1 Record keepin; Inspection of Records. CVWD hereby agrees to keep and maintain full and accurate records of all amounts, and investment earnings, if any, paid to CVWD for the CVWD Charges, and the City hereby agrees to keep and maintain full and accurate records of all amounts, and investment earnings, if any, expended from the CVWD Facilities Fund. Each Party further agrees to make such records available to any other Party hereto, including any Property Owner, during normal business hours upon reasonable prior notice. All such records shall be kept and maintained by the appropriate Party as provided by applicable law and their respective policies. Each of CVWD and Property Owner agree that they will cooperate with the CFD and the City in providing documentation, reports or other data reasonably required and requested by the City or the CFD in meeting the reporting requirements of the CFD under California Senate Bill (SB) No. 165, Chapter 5;5 of the Statutes of 2000. Section 5.2 Disclosure of Special Tax; Calculation of Special Tax Requirement. a) Delivery of Notice. From and after the date of this Agreement, each Property Owner and its successors and assigns shall give a "Notice of Special Tax" (as defined in Section 5.2(b) below) to each prospective purchaser of a parcel in the CFD and shall deliver a fully executed copy of each notice to City. Property Owner and its successor and assigns shall (i) 17 113 maintain records of each Notice of Special Tax for a period of five (5) years, and (ii) shall provide copies of each notice to City promptly following the close of escrow for the sale of each parcel for which such notice was given. Property Owner and its successors and assigns shall include the Notice of Special Tax in all Property Owner's and its successors and assigns' applications for Final Subdivision Reports required by the Department of Real Estate ("DRE") which are filed after the Effective Date of this Agreement. Property Owner shall require, as a condition precedent to close an escrow for the sale of real property to a developer acquiring lots (a "Residential Developer") that such Residential Developer shall (i) maintain records of each Notice of Special Tax for a period of five (5) years, ii) provide copies of each notice to City promptly following the close of escrow for the sale of each parcel for which such notice was given, and (iii) include the Notice of Special Tax in all of such Residential Developer's applications for Final Subdivision Reports required by DRE. b) Notice of Special Tax. With respect to any parcel, the term "Notice of Special Tax" means a notice in the form prescribed by California Government Code Section 5;;41.5 which is calculated to disclose to the purchaser thereof(i) that the property being purchased is subject to the special tax of the CFD, (ii) the land use classification of such property; (iii) the maximum annual amount of the special tax and the number of years for which it will be levied; and (iv) the types of facilities or services to be paid for or with the proceeds of the special tax. c) Notice to Subsequent Purchasers. Upon formation of the CFD it is expected that the City will file with the Riverside County Recorder a notice of special tax lien that gives notice of the existence of the CFD and the levy of the special tax on property within the CFD for the benefit of subsequent property owners, pursuant to requirements of Section of 5;;28.; of the Act and Section 31 14.5 of the Streets and Highways Code. d) Information Sheet and Sample Property Tax Bill. Property Owner shall provide each purchaser of Property with a sample property tax bill in a form approved by the CFD. Property Owner shall provide prospective purchasers of homes an information sheet in the sale office in the form set forth in Exhibit C attached hereto and incorporated herein by this reference. Section 5.3 Partial Invaliditv. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible. Section 5.4 Amendment and Assi nment. No Property Owner shall have any right to assign or otherwise transfer this Agreement, either voluntarily or by operation of law, in whole or in part, without the prior written consent of CVWD and City in each instance, which consent may be withheld in CVWD's and City's sole and absolute discretion. An approval of an assignment shall be evidenced by a written instrument in a form satisfactory to CVWD and City, executed by the assignor and assignee, under which the assignee shall again, in writing, for the benefit of CVWD and City, agree to perform and to abide by all of the terms, covenants and conditions of this Agreement to be done, kept and performed by assignor. Regardless of CVWD's and City's consent, no assignment shall 18 114 release an assignor of assignor's obligations hereunder. The rights and obligations of any Property Owner hereunder shall inure to and be binding upon its successors and assigns. Section 5.5 Notice. Any notice, payment or instrument required or permitted by this Agreement must be in writing, and sent to the addresses of each Party set forth below. Notice will be sufficiently given or delivered to a Party for all purposes as follows: (a) when personally delivered to the recipient, notice is effective on delivery; (b) when mailed certified mail, return receipt requested, postage prepaid, notice is effective on receipt, if a return receipt confirms its delivery; (c) when delivered by an overnight delivery service such as Federal Express, charges prepaid or charged to the sender's account, notice is effective on delivery, if delivery is confirmed by the delivery service; d) when delivered by facsimile transmission, notice is effective on receipt, provided that the facsimile machine provides the sender a notice that indicates that the transmission was successful and that a copy is mailed by first class mail of the facsimile transmission date. Addresses for purpose of giving notice are as follows: City: City of Palm Desert 7;-510 Fred Waring Drive Palm Desert, CA 92260 Facsimile: (760) 776-6306 Attention: City Manager CVWD: Coachella Valley Water District Highway 1 1 1 and Avenue 52 P.O. Box 1058 Coachella Valley, CA 92236 Facsimile : (760) 398-371 1 Attention: General Manager Property Owner: W 2' 5005 Calle Dan Raphael, Suite B-1 Palm Springs, CA 92664 Facsimile: (760) 778-4417 Attention: Michael Marix PDFC: 3 Civic Plaza, Suite 215 Newport Beach, CA 92660 Facsimile: (949) 644-7620 Attention: Tom Hover 19 115 UV Partnership: 74-000 Country Club Drive Suite H-2 Palm Desert, CA 9221 1 Facsimile: (760) 773-9903 Attention: Rick Evans Shaw: 160 Newport Center Drive Suite 250 Newport Beach, California 92660 Facsimile: (949) 759-5619 Attention: Charles E. Crookall 9777 Wilshire Blvd. S&C Suite 918 Beverly Hills, California 90212 Facsimile: (323) 651-;1 18 Attention: Ryan Ogulnick Each Party can change its address for delivery of notice by delivering written notice of such change or address to the other parties within ten (10) calendar days prior to such change. Section 5.6 Captions. The captions to Sections used herein are for convenience purposes only and are not part of this Agreement. Section 5.7 Governin Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California applicable to contracts made and performed in such State. Section 5.8 Entire A reement. This Agreement contains the entire agreement between the Parties with respect to the matters provided for herein and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this Agreement. Section 5.9 Amendments. This Agreement may be amended or modified only in writing executed by the authorized representative(s) of each of the Parties hereto. Section 5.10 Waiver. The failure of any Party hereto to insist on compliance within any of the terms, covenants or conditions of this Agreement by any other Party hereto, shall not be deemed a waiver of such 20 116 terms, covenants or conditions of this Agreement by such other Party, nor shall any waiver constitute a relinquishment of any other right or power for all or any other times. Section 5.11 No Third Partv Beneficiaries. No person or entity other than the CFD, when and if formed, shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City, the CFD, CVWD and each Property Owner (and their respective successors and assigns, exclusive of individual homebuyers), any rights, remedies, obligations or liabilities under or by reason of this Agreement. Section 5.12 Cooperation and Execution of Documents. The Parties hereto agree to complete and execute any further or additional documents which may be reasonably necessary to complete or further the terms of this Agreement. Section 5.13 Attornevs' Fees. In the event of the bringing of any action or suit by any Party against any other Party arising out of this Agreement, the Party in whose favor final judgment shall be entered shall be entitled to recover from the losing Party all costs and expenses of suit, including reasonable attorneys' fees. Section 5.14 Exhibits. The following exhibits attached hereto are incorporated into this Agreement by reference. Exhibit Description A-1" CFD Boundary Map A-2"Property Owned by Each Property Owner B" Acquisition Facilities Description C" Disbursement Request Form D" Form of Home Buyer CFD Information Sheet Section 5.15 Si natories. The signatories hereto represent that they have been appropriately authorized to enter into this Agreement on behalf of the party for whom they sign. Section 5.16 Sin ular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine. 21 117 Section 5.17 Execution in Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. Section 5.18 Venue. Any legal action or proceeding concerning this Agreement shall be filed and prosecuted in the appropriate California state court in the District of Riverside, California. Each Party irrevocably consents to the personal jurisdiction of that court. The Parties each hereby expressly waive to the maximum legal extent the benefit of any provision of federal or state law or judicial decision providing for the filing, removal or change of venue to any other court or jurisdiction, including, without implied limitation, federal district court, due to any diversity of citizenship between the Parties. Section 5.19 Construction. The language in all parts of this Agreement shall in all cases be construed as a whole according to its fair meaning and not strictly for or against any Party. All provisions and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identification of the person or persons, firm or firms, corporation or corporations may require. This Agreement is the product of mutual negotiation and drafting efforts. Accordingly, the rule of construction that ambiguities in a document are to be construed against the drafter of that document shall have no application to the interpretation or enforcement of this Agreement. Section 5.20 Time is of the Essence Time is of the essence of this Agreement and each and every provision thereof. Section 5.21 No CVWD Liabilitv. The City, C V W D and Property Owner acknowledge and agree that C V W D shall have no responsibility or liability to City or the Property Owner for the establishment of the Community Facilities District, the levy of the special taxes, the issuance of the Bonds, the financing of the CVWD Charges, any disclosure made in connection with the offering and sale of the Bonds or any continuing disclosures made at any time with respect to the Bonds or any matters relating thereto. Section 5.22 CVWD Char es. Nothing herein shall be construed to allow Property Owners to pay the CVWD Charges in effect at the effective date of this Agreement. The Property Owners shall pay the CVWD Charges in effect at the time the Property Owner pays the CVWD Charges or the Advance (with respect to the portion of the Property covered by the Advance) or the Deposit (with respect to the Property covered by the Deposit). 22 118 Section 5.24 City Representations. City hereby represents to CVWD that the following are true and correct: a) The Act exempts any requirement that facilities for the City will be financed by a larger share of the proceeds of the Special Taxes and Bond than the CVWD Charges and the Acquisition Facilities. b)The CVWD Charges qualify for financing pursuant to the Act. Section 5.25 Independent Contractor. In performing this Agreement, each Property Owner is an independent contractor and not the agent of CVWD or City. Except as provided herein, CVWD and City shall have no responsibility to pay any contractor or supplier of any Property Owner. It is not intended by the Parties to this Agreement to create a partnership or joint venture among them and this Agreement shall not otherwise be construed. REMAINDER OF PAGE IS BLANK) 23 119 IN WITNESS WHEREOF, the parties hereto have executed this Joint Community Facilities Agreement as of the day and year written alongside their signature below. CITY OF PALM DESERT Date: 20 By: Its: City Manager COACHELLA VALLEY WATER DISTRICT Date: 20 By: General Manager of the Coachella Valley Water District DESERT WELLS 237, LLC, a California limited liability company By: Palm Desert 237, LLC, a California limited liability company Its: Manager By: Marix Family Limited Partnership, a Delaware limited partnership Its: Manager Date: 20 By: Marix Family Trust dated as of October 12, 2000, as amended Its: General Partner By: Michael S. Marix Its: Sole Trustee 24 120 PALM DESERT FUNDING COMPANY, LP, a Delaware limited partnership By: Palm Desert Funding Company, LLC, a Delaware limited liability company Its: General Partner By: Palm Desert Funding Company, Inc., a Delaware corporation Date: 20 Its: Member By: Name: Title: THE UNIVERSITY VILLAGE PARTNERSHIP, a California general partnership By: Evans University Village LLC, a California limited liability company Its: Partner By: The Evans Company LLC, a California limited liability company Its: Manager Date: 20_By: Frederick Oliver Evans, III Its: Member By: Edwards University Village LLC, a California limited liability company Its: Partner Date: 20_By: James W. Edwards, III Its: Manager Signatures continue on next page] 25 121 SHAW/PALM DESERT 1, LLC, a California limited liability company By: Shaw-CDK Properties, LLC, a California limited liability company Date: 20_ Its: Manager By: Charles E. Crookall Its: Manager SINATRA & COOK PROJECT, LLC, A California limited liability company By: The Rancho Mirage Trust Its: Manager and Member By: Steven Gilfenbain Its: Trustee By: Ryan Ogulnick Its: Member and Manager By: Fordar, LLC, Date: 20 A California limited liability company Its: Member and Manager By: Kambiz Kamdar Its: Manager By: Fred Kamdar Its: Member By: Joseph Foroosh, D. Its: Member 26 122 EXHIBIT "A-1" PROPERTY DESCRIPTION Attach CFD Boundary Map A-1-1 123 EXHIBIT "A-2" PROPERTY OWNED BY EACH PROPERTY OWNER With reference to Parcel Map No. 31730, City of Palm Desert, California, as recorded on January 3 l, 2005 on Page(s) 63-75 in Book 21 1 of Parcel Maps, in the Office of the Recorder, in the County of Riverside, State of California ("Office of the County Recorder"), and as adjusted by those certain Grant Deeds recorded on August 24, 2005 as Documents No. 2005-0696757, 2005-0696758, 2005-0696759, and 2005-0696760, in the Official Records, Office of the County Recorder, which adjustment (the "August 2005 Lot Line Adjustment") is also as shown and set forth in that certain Certificate of Compliance No. OS-Ol, recorded on August 24, 2005 as Document No. 2005-0696754, in the Official Records, Office of the County Recorder, the property owned by each Owner within the boundaries of the proposed CFD is as follows: Numbered Lots Parcel Map Parcel No. 31730)Owner(s) Map Acres 1 Desert Wells 237, LLC, and Albor Properties III, LP 5.462 2 Desert Wells 237, LLC, and Albor Properties III, LP 17.643 3 Desert Wells 237, LLC, and Albor Properties III, LP 27.481 4 Desert Wells 237, LLC, and Albor Properties III, LP 18.461 5 Desert Wells 237, LLC, and Albor Properties III, LP 9.748 6 Desert Wells 237, LLC, and Albor Properties III, LP 5.061 7 Desert Wells 237, LLC, and Albor Properties III, LP 10.173 9 Palm Desert Funding Company, LP 76.218 10 Desert Wells 237, LLC, and Albor Properties III, LP 19.758 1 1 Shaw/Palm Desert l, LLC 9.746 12 The University Village Partnership 10.56 13 The University Village Partnership 3.243 14 Desert Wells 237, LLC, and Albor Properties III, LP 7.075 15 Palm Desert Funding Company, LP 1 1.459 16 Sinatra & Cook Project, LLC 19.604 Total: 251.692 A-2-1 124 EXHIBIT "B" ACQUISITION FACILITIES DESCRIPTION Acquisition Facilities" means those facilities needed by CVWD in order to provide services to the Project and also includes any of the following: CVWD sewer and water transmission lines, sewer and water pump stations, water reservoirs, well sites, including all costs of site acquisition, Plannin 7 desi 7n en 7ineerin 7 le 7al services, materials testin 7 coordination, surve in 7Y , construction staking, construction, inspection and any and all appurtenances and appurtenant work, such as related clearin 7 and 7rubbin 7 7radin 7 and an removal or tem orar si 7na 7e orYPY markings related thereto relating to the foregoing. The Acquisition Facilities include, but shall not be limited to, the facilities listed below, and other facilities of the same type or types may be substituted in the place of one or more of the specific facilities listed below. The final nature and location of the Acquisition Facilities will be determined upon the preparation of final plans and specifications for such Acquisition Facilities. The Acquisition Facilities may include facilities financed pursuant to public agency development impact fees. I.Water Improvements A. University Park Drive: from West intersection College Drive to East intersection College Drive B. Technology Drive: from College Drive to Gerald Ford Drive C. Pacific Avenue: from College Drive to Gerald Ford Drive D. College Drive: from Portola Avenue to Frank Sinatra Drive E. Well Sites (including land acquisition and improvements) to be located at four sites to be determined by the Coachella Valley Water District concurrently with land plan, final tentative map(s), or similar document(s) (as appropriate) to be approved by the City's Planning Commission and City Council. The tentatively approved locations of the well sites are as follows: 1. Adjacent to Gerald Ford Drive between Pacific Avenue and Technology Drive; 2. Northeast corner of College Drive and Portola Avenue; 3. Adjacent to University Park Drive close to the western intersection with College Drive; and 4. Adjacent to College Drive South of University Park Drive F.In tract water facilities. G. Water Facilities to be funded from CVWD Charges B-1 125 II. Sewer Improvements A. Technology Drive: from College Drive to Gerald Ford Drive B. Pacific Avenue: from College Drive to Gerald Ford Drive C. College Drive: from the West intersection University Park Drive to Technology Drive to North of Frank Sinatra Drive D. University Park Drive: from West intersection College Drive to Southwest of West intersection of College Drive and West of the East intersection College Drive to the East intersection College Drive E. In tract sewer facilities. F.Sewer Facilities to be funded from CVWD Charges The description of Acquisition Facilities listed above in this Exhibit B is preliminary and representative of the types of facilities eligible to be financed by the CFD. Detailed scope and limits of specific projects will be determined as appropriate, consistent with the standards of CVWD. The Acquisition Facilities shall be constructed, whether or not acquired in their completed states, pursuant to the Plans and Specifications approved by CVWD, which approval will not be unreasonably withheld. B-2 126 EXHIBIT "C" DISBURSEMENT REQUEST FORM l.City of Palm Desert Community Facilities District No. 2005-1 (University Park) CFD") is hereby requested to pay from the CFD bond proceeds to the Coachella Valley Water District ("CVWD"), as Payee, the sum set forth in 3 below. 2.The undersigned certifies that (a)the amount requested for CVWD Charges is due and payable and has not formed the basis of prior request or payment; (b) there has been compliance with applicable laws relating to prevailing wages for the work to construct the Acquisition Facilities for which payment is requested; (c) the Acquisition Facilities for which payment is requested were constructed in accordance with all applicable CVWD or other governmental standards; and (d) the undersigned is not in default in the payment of ad valorem real property taxes or special taxes or special assessments levied on its Property in the District. 3.Amount requested: $ For Lot Nos: 4.The amount set forth in 3 above is authorized and payable pursuant to the terms of the Joint Community Facilities Agreement by and among the CITY OF PALM DESERT, COACHELLA VALLEY WATER DISTRICT, DESERT WELLS 237, LLC, a California limited liability company, PALM DESERT FUNDING COMPANY, LP, a Delaware limited partnership, THE UNIVERSITY VILLAGE PARTNERSHIP, a California general partnership, SHAW/PALM DESERT l, LLC, a California limited liability company, and SINATRA & COOK PROJECT, LLC, a California limited liability company, dated as of 20_ the "Agreement"). Capitalized terms not defined herein shall have the meaning set forth in the Agreement. PROPERTY OWNER" By: Title: Date: APPROVED AS TO AMOUNT REQUESTED ONLY: COACHELLA VALLEY WATER DISTRICT, a public agency By: Title: Date: C-1 127 EXHIBIT "D" FORM OF HOMEBUYER CFD INFORMATION SHEET CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 UNIVERSITY PARK) 1. WHAT IS COMMUNITY FACILITIES DISTRICT (CFD) NO. 2005-1? CFD No. 2005-1 was formed pursuant to the "Mello-Roos Community Facilities Act of 1982" to finance 2. WHO IS RESPONSIBLE TO PAY THE SPECIAL TAX AND HOW IS IT BILLED? The Property owner is responsible for paying the CFD No. 2005-1 special tax, which will appear as a separate line item on your property tax bill along with your regular property taxes. 3.HOW MUCH WILL MY SPECIAL TAX BE? The maximum special tax applicable to your lot is the greater of the assigned special tax or backup special tax. The assigned and backup special taxes for CFD No. 2005-1 for the 2006-07 Fiscal Year are summarized below. It is expected that the actual special tax levied each year will be the assigned special tax and the backup special tax would only be levied where there has been very signifcant delinquencies or changes in the development. Classification Home Size Assi ned S ecial Tax 1 dwelling unit 2 dwellin 7 unit 3 dwelling unit 4 dwellin 7 unit 4.HOW LONG WILL 1 HAVE TO PAY THE CFD NO. 2005-1 SPECIAL TAX? The CFD No. 2005-1 special tax will not be collected after calendar year 20_. 5.CAN THE SPECIAL TAXES BE PREPAID? Homeowners have the option of prepaying their CFD No. 2005-1 special tax anytime. For prepayment information please contact the City. 6. WHERE CAN 1 GET MORE INFORMATION? For more information in regards to CFD No. 2005-1, contact the City of Palm Desert at 1 128 c-2 129 RESOLUTION NO. 06- A RESOLUTION OF FORMATION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT TO ESTABLISH CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK), TO MAKE ENVIRONMENTAL FINDINGS WITH RESPECT THERETO, TO ADOPT A MITIGATED NEGATIVE DECLARATION IN CONNECTION THEREWITH, TO ESTABLISH AN APPROPRIATIONS LIMIT THEREFOR, TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN, AND TO SUBMIT THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT AND THE LEVY OF A SPECIAL TAX TO THE QUALIFIED ELECTORS THEREOF RECITALS: WHEREAS, in accordance with a request set forth in a petition signed by the owners of certain land proposed for inclusion in a proposed community facilities district the "Petitioning Landowners"), the City Council (the "City Council") of the City of Palm Desert, California (the "City"), has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 (University Park) and to Authorize the Levy of a Special Tax within City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Intention to Establish DistricY') stating its intention to conduct proceedings to form City of Palm Desert Community Facilities District No. 2005-1 University Park) (the "DistricY') pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code the "AcY') to finance certain public facilities to serve the District (the "Original Facilities"); and WHEREAS, a copy of the Resolution of Intention to Establish District setting forth a description of the proposed boundaries of the District, the Original Facilities to be financed by the District, including incidental expenses, and the rate and method of apportionment of the special tax proposed to be levied within the District is on file in the office of the City Clerk of the City and is incorporated herein by reference; and WHEREAS, the City Council has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Incur Bonded Indebtedness Within Proposed City of Palm Desert Community Facilities District No. 2005- 1(University Park)" (the "Resolution of Intention to Incur Bonded Indebtedness") stating the City Council's intention, acting as the legislative body of the District, to authorize the issuance and sale of one or more series of bonds for the District in maximum aggregate principal amount of $70,000,000 to finance the cost of Original Facilities; and WHEREAS, the Resolution of Intention to Establish District and Resolution of Intention to Incur Bonded Indebtedness set December 8, 2005 (the "Original Hearing to.o z s,os. 130 Date") as the date of a public hearing on the establishment of the District, the extent of the District, the furnishing of Original Facilities to serve the District, the proposed rate and method of apportionment of the special tax within the District, and the proposed debt issue; and WHEREAS, a notice of the public hearing was published and was mailed to all landowners proposed to be included in the District in accordance with the Act; and WHEREAS, prior to the Original Hearing Date, the Petitioning Landowners made the determination to exclude the development impact fees of the Palm Springs Unified School District and the school improvements to be constructed thereby (the "School Facilities") from the list of public facilities to be financed by the District, in the interest of applying a greater portion of the DistricYs financing to the facilities to be owned by the City and the Coachella Valley Water District (the "CVWD"); and WHEREAS, prior to the Original Hearing Date, there was filed with the City Council a report containing a description of the facilities necessary to adequately meet the needs of the District and an estimate of the cost of financing such facilities as required by Section 53321.5 of the Act (the "Report"), which Report amends the list of Original Facilities to delete the School Facilities from the list of public facilities to be financed by the District; and WHEREAS, Section 53316.2 of the Act permits the District to finance facilities to be owned or operated by a public agency other than the City, but only pursuant to a joint community facilities agreement ("JCFA") adopted by resolution of each of the public agencies that are party thereto and prior to the City Council's adoption of a resolution of formation to establish the District; and WHEREAS, prior to the Original Hearing Date, representatives of the Petitioning Landowners met with representatives of the CVWD to discuss the approval of a JCFA pursuant to Section 53316.2 of the Act, regarding certain of the Original Facilities which, if approved by the qualified electors within the District, would be owned and operated by the CVWD; and WHEREAS, the CVWD indicated that it would need more time beyond the Original Hearing Date to consider the terms and conditions of the proposed JCFA and for the Board of Directors of the CVWD to approve the JCFA by resolution; and WHEREAS, the aforementioned public hearing was duly continued from December 8, 2005 in the City Council Chamber to 4 p.m. on January 12, 2006 in the City Council Chamber upon a finding by the City Council that, pursuant to Section 53325 of the Act, it is appropriate and necessary to continue such hearing, in order to ensure adequate time to address the complexities of the District relating to the JCFA and to ensure adequate opportunity for public comment and participation, including without limitation the comment and participation of the CVWD, with respect to the proposed Original Facilities and JCFA; and to.o3z s,3 os. 2 131 WHEREAS, prior to the reconvening of the public hearing on January 12, 2006, it was determined that certain park improvements and park land site acquisition identified in Sections VIII.E. and VIII.F. of Exhibit "A" of the Resolution of Intention to Establish District the "Parks E and F Improvements"), also described as "Park E" and "Park F," respectively, will not be owned by the City or any other governmental entity and may not be financed by the District by the issuance of its tax-exempt bonds; and WHEREAS, Section 53325 of the Act permits the City Council to modify the Resolution of Intention to Establish District by eliminating proposed facilities, if the City Council makes such modifications at the aforementioned public hearing; and WHEREAS, at the public hearing, the City Council adopted a resolution entitled, "A Resolution of the City Council of the City of Palm Desert Modifying the Resolution of Intention to Eliminate Certain Facilities From Financing by Proposed City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Modification"), which is on file in the office of the City Clerk of the City and modifies and amends the Resolution of Intention to Establish District by amending the list of Original Facilities therein to eliminate the School Facilities and the Parks E and F Improvements, which revised list of authorized facilities is set forth in Exhibit "A" hereto (the "Facilities"); and WHEREAS, at the public hearing, all persons desiring to be heard on all matters pertaining to the establishment of the District, the extent of the District, the furnishing of Facilities to serve the District, the proposed rate and method of apportionment of the special tax, and the proposed debt issue were heard and a full and fair hearing was held; and WHEREAS, at the public hearing, evidence was presented to the City Council on the matters before it, and the City Council at the conclusion of the hearing is fully advised as to all matters relating to the formation of the District, the levy of the special tax, and the incurrence of bonded indebtedness therein; and WHEREAS, written protests with respect to the establishment of the District, the extent of the District, and the furnishing of Facilities to serve the District have not been filed with the City Clerk by fifty percent or more of any registered voters residing within the territory of the District or property owners of one-half or more of the area of land within the District and not exempt from the levy of the special tax; and WHEREAS, the special tax proposed to be levied in the District to pay for the costs of the Facilities has not been eliminated by protest by fifty percent or more of any registered voters residing within the territory of the District or property owners of one-half of more of the area of land within the District and not exempt from the levy of the special tax; and WHEREAS, City staff prepared an initial study (the "Initial Study") forthe project, as defined in paragraph 8 of the Initial Study (the "ProjecY'), including formation of the District to.o3z s,3 os. 3 132 and financing the Original Facilities (which include all of the Facilities listed in Exhibit "A" hereto), as required by the California Environmental Quality Act, commencing with Section 21000 of the California Public Resources Code and the California Environmental Quality Act Guidelines, Article 5 of Chapter 3 of Division 6 of Title 14 of the California Code of Regulations, (collectively "CEQA"). The Initial Study concluded that the Project would not result in any significant adverse environmental impacts with the implementation of certain mitigation measures. Therefore a Mitigated Negative Declaration was prepared and circulated for a 20-day public review and comment period, during which the City received one comment letter from Sunline Transit Agency. The Sunline Transit Agency letter commented on sidewalk installation and transit services in the vicinity of the Project. Approximately 3 weeks after the close of the public review and comment period, the City also received one comment letter from the CVWD, and in response, staff has made minor corrections to the Initial Study and the Mitigated Negative Declaration. A Mitigation, Monitoring and Reporting Plan was prepared for this Project; and WHEREAS, the City Council desires to proceed with the establishment of the District and to make the necessary findings to incur the bonded indebtedness. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT: 1. Recitals. The above recitals are all true and correct. 2. Findina of Validity. Pursuant to Section 53325.1(b) of the Act, the City Council finds and determines that all of the proceedings prior hereto were valid and taken in conformity with the requirements of the law, and specifically the provisions of the Act. 3. Name of District. The City Council hereby establishes and declares the formation of a community facilities district pursuant to the Act to be designated "City of Palm Desert Community Facilities District No. 2005-1 University Park)." 4. Boundaries of District. The exterior boundaries of the District are shown on the map entitled "Map of Proposed Boundaries, Community Facilities District No. 2005-1 (University Park), City of Palm Desert, County of Riverside, State of California" (the "Map") and recorded in the Riverside County Recorder's office in Book 64, Page 78, of Maps of Assessment and Community Facilities Districts. The Map is hereby approved and incorporated herein by reference. 5. Facilities. The type of Facilities proposed to be provided to serve the District and to be financed under the Act shall consist of those facilities set forth on Exhibit "A" and incorporated herein by reference. The City Council hereby finds that the proposed Facilities are necessary to meet increased demands to.o3z s,3 os. 4 133 placed upon the City as a result of development occurring in the District. The City Council additionally finds that, except for the elimination of the School Facilities and the Parks E and F Improvements pursuant to the Resolution of Modification, the adjustments to the descriptions of the facilities from the Resolution of Intention to Establish District (a) are merely for clarification purposes, (b) do not add any types of facilities that were not specified in the Resolution of Intention to Establish District, and (c) do not constitute a change in the types of authorized public facilities to be financed by the District. 6. CEQA. a. The City Council, as the lead agency for the Project, has considered the Mitigated Negative Declaration, the November22, 2005, comment letter from Sunline Transit Agency, and the testimony received during the public hearing for the Project. Although the comment letter from CVWD was received approximately 3 weeks after the close of the public review and comment period, the City Council has also considered such comment letter. b. The Sunline Transit Agency comment letter discusses installation of sidewalks in conjunction with the CFD improvements which, as noted in Exhibit "A" of the Initial Study, are included within the street improvements to be completed by the Project. c. For reference to certain mitigation measures and mitigation monitoring/reporting programs, the Mitigated Negative Declaration included certain pages excerpted from the final Environmental Report relating to the General Plan and Environmental Impact Report (SCH 2003051103) (the "General Plan EIR"). The CVWD comments letter made inquiry or corrections to a few factual statements in the pages from the General Plan EIR. The City's staff has considered and responded to such inquiries or corrections in the staff report relating to this resolution. d. The CVWD comments letter also requested further analysis of the Project effects regarding water quality, discharge, and groundwater, because page 8 of 15 of the environmental checklist within the Initial Study has indicated "No Impact." However, excerpted pages III-73, III- 81-83, III-92-94 and from the General Plan EIR and included within the Mitigated Negative Declaration discuss the water quality, discharge, and groundwater at length, including lists of related mitigation measures. Therefore, the City Council hereby makes the corrections to page 8 of 15 of the environmental checklist within the Initial Study, to items a) and b) under the heading "HYDROLOGY to.o z s,os. 5 134 AND WATER QUALITY," to indicate "Less Than Significant With Mitigation Incorporated" rather than "No Impact." Similarly, the City Council hereby amends Section 9 of the Environmental Checklist Discussion within the Mitigated Negative Declaration to clarify that the drainage facilities and retention basins required to be constructed as part of the Project, together with the mitigation measures identified and attached to the Mitigated Negative Declaration from the General Plan EIR (such as water conservation and landscaping measures, wastewater treatment and reclamation), will be implemented and can mitigate the potential impacts of development on water quality, discharge, and groundwater resources to less than significant impacts. The City Council hereby additionally finds that these corrective and clarifying changes to the Initial Study and Mitigated Negative Declaration do not constitute "substantial revisions" as defined in Section 15073.5 of the CEQA Guidelines, that these revisions constitute insignificant modifications and information that merely clarify the Mitigated Negative Declaration, and that pursuant to Section 15073.5(c)(4) of the CEQA Guidelines, no recirculation of the Mitigated Negative Declaration is required. e. The City Council hereby finds, in its independent judgment after considering all relevant evidence in the record of proceedings for the Project, including without limitation the information set forth in the Mitigated Negative Declaration and the Initial Study, that there is not substantial evidence supporting a fair argument that the Project may actually produce any significant environmental impacts that cannot be mitigated to a less than significant level through implementation of those mitigation measures identified in the Mitigated Negative Declaration. Therefore, the City Council finds that the Project will not have a significant environmental effect. f. The City Council finds that the Mitigated Negative Declaration reflects the City Council's independent judgment and analysis. g. The City Council hereby adopts the final Mitigated Negative Declaration and the Mitigation, Monitoring and Reporting Planforthe proposed Project, attached hereto as Exhibit "C" and incorporated herein by reference, subject to the corrections and modifications contained in this Resolution. h. The City Council hereby directs staff to prepare a Notice of Determination, to file that Notice with the County Clerk in accordance with Section 15075(d) of the California Environmental Quality Act Guidelines, and to pay the applicable Fish and Game filing fee. to.o3z s,3 os. 6 135 7. No Maioritv Protest. The City Council hereby finds that written protests against the establishment of the District, against the furnishing of a specified type of facility to serve the District, or against the levying of a specified special tax within the District have not been filed by any property owner or registered voter within the boundaries of the District. Therefore, the City Council finds and declares that the special tax to be levied in the District has not been precluded by majority protest pursuant to Section 53324 of the Act. 8. Special Tax. a. Except where funds are otherwise available to pay for the Facilities and/or the principal and interest as it becomes due on bonds of the District issued to finance the Facilities, a special tax (the "Special Tax") is hereby authorized, subject to approval by two-thirds of the votes cast within the District, to be levied annually in accordance with the procedures of the Act within the boundaries of the District sufficient to pay for the costs thereof, including incidental expenses. The Special Tax will be secured by recordation of a continuing lien against all non-exempt real property in the District and will be collected in the same manner as ordinary ad valorem property taxes are collected, or in such other manner as may be provided by the City Council including, without limitation, direct billing of the affected property owner, and shall be subject to the same penalties, procedure, sale and lien priority in case of delinquency as applicable for ad valorem property taxes. In the first year in which the Special Tax is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon. b. The proposed rate and method of apportionment of the Special Tax among parcels of real property in the District, in sufficient detail to allow each resident or landowner to estimate the maximum amount such resident or owner will have to pay, is shown in Exhibit "B", attached hereto and incorporated herein by reference (the "Rate and Method"). The City Council hereby determines the Rate and Method set forth in Exhibit "B" to be reasonable and, in accordance with the City's Goals and Policies for Community Facilities Districts adopted on October 13, 2005 under Section 53312.7 of the Act (the "Goals and Policies"), that the Overlapping Debt Burden (as used in the Goals and Policies and based on the applicable Special Tax) relating to commercial parcels within the District, while projected to exceed 2.0% percent of the projected assessed value of each improved commercial parcel within the District (based on the appraisal forsuch property within District obtained pursuant to the Goals and Policies), is fiscally prudent. to.o3z s,3 os. 7 136 c. In the case of any Special Tax to pay for the Facilities to be levied against any parcel used for private residential purposes: (i) the maximum Special Tax shall be specified as a dollar amount which shall be calculated and thereby established not later than the date on which the parcel is first subject to the tax because of its use for private residential purposes and which amount shall not be increased over time over two percent (2%) per year; (ii) the tax year after which no further Special Tax subject to this sentence shall be levied or collected shall be as set forth in Exhibit "B" hereto; and (iii) under no circumstances will the Special Tax levied against any parcel subject to this sentence be increased as a consequence of delinquency or default by the owner of any other parcel within the District by more than ten percent (10%). For the purposes hereof, a parcel is used for private residential purposes" not later than the date on which an occupancy permit for private residential use is issued. 9. Notice of Special Tax Lien. Upon recordation of a notice of special tax lien with respect to the District pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all nonexempt real property in the District, and this lien shall continue in force and effect until collection of the Special Tax by the City Council ceases. 10. Appropriations Limit. An appropriations limit for the District is hereby established, subject to voter approval, as an amount equal to all the proceeds of the Special Tax collected annually within such District and as defined by Article XIIIB of the California Constitution, as adjusted for changes in the cost of living and changes in population. 11. Preparation of Annual Roll. The then current Finance Director, 73-510 Fred Waring Drive, Palm Desert California 92260, telephone number (760) 346- 0611, is designated to be responsible for preparing annually, or authorizing a designee to prepare, a current roll of Special Tax levy obligations by assessor's parcel number and for estimating future Special Tax levies pursuant to Section 53340.2 of the Act. 12. Report. The Report is hereby approved, made a part of the record of the public hearing regarding the formation of the District, and ordered to be kept on file in the office of the City Clerk and open for public inspection. 13. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the City Council hereby establishes the following accountability measures pertaining to the levy by the District of the Special Tax described in Section 8 above: to.o3z s,3 os. 8 137 a. Such Special Tax shall be levied for the specific purposes set forth in Section 8(a) hereof. b. The proceeds of the levy of such Special Tax shall be applied only to the specific purposes set forth in Section 8(a) hereof. c. The District shall establish an account or accounts into which the proceeds of such Special Tax shall be deposited. d. The City Manager, or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. 14. Election. The proposition related to the incurring of the bonded indebtedness and the proposition relating to the levy of the Special Tax shall be combined into one ballot proposition, and shall be submitted to the qualified voters of the District, together with a proposition to establish an appropriations limit for the District. The election shall be held on January 12, 2006, in the City Council Chamber, 73-510 Fred Waring Drive, Palm Desert, California 92260. Pursuant to Section 53327 of the Act, the election shall be conducted by mail ballot in accordance with the California Elections Code and the voted ballots shall be returned to the City Clerk immediately following adoption of a resolution calling the special election. The election shall be closed when the qualified electors have voted, but not later than 8 p.m. on January 12, 2006. to.o3z s,3 os. 9 138 PASSED AND ADOPTED this 12th day of January, 2006, by the following vote to wit: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers Jim Ferguson, Mayor ATTEST: Rachelle D. Klassen, City Clerk to.o3z s,3 os. 10 139 EXHIBIT "A" DESCRIPTION OF FACILITIES The public facilities (the "Facilities") described below are proposed to be financed by City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "DistricY) and include a pedestrian bridge, traffic signals, landscaping, street improvements, water improvements, well site improvements and land acquisition, sewer improvements, storm drain improvements, utility improvements, public art improvements, park improvements, and park site land acquisition, together with all appurtenances and appurtenant work, such as related clearing and grubbing, grading, and any removal or temporary signage or markings related thereto. The cost of the Facilities shall include incidental expenses, including costs associated with forming the District, issuance of bonds, determination of the amount of the Special Tax, collection of the Special Tax, payment of the Special Tax, costs incurred in order to carry out the authorized purposes of the District, and the costs of engineering, inspecting, coordinating, completing, planning and designing the Facilities, including the costs of environmental evaluations. The Facilities include, but shall not be limited to, the facilities listed below, and other facilities of the same type or types may be substituted in the place of one or more of the specific facilities listed below. Any of the Facilities to be constructed shall be constructed, whether or not acquired in their completed states, pursuant to plans and specifications approved by the City of Palm Desert (or the Coachella Valley Water District, as applicable) and the officials thereof, including the City Engineer. The final nature and location of the Facilities will be determined upon the preparation of final plans and specifications for such Facilities. The Facilities may include facilities financed pursuant to public agency development impact fees. One half of Cook Street Pedestrian Bridae (including, but not limited to bridge, ADA access ramps, elevator, retaining walls, hand railing, pedestrian lighting, revised sidewalks and minor grading) II. Street Imqrovements (including, but not limited to, street widening, excavation, signing and striping, access ramps, grading, median and parkway landscaping, curbs and gutters, sidewalks, street lights, dry utility infrastructure, bus stops, fringe toed lizard fee and City fees) A. Frank Sinatra Drive: from West of Cook Street to College Drive B. Cook Street: from Frank Sinatra Drive to Gerald Ford Drive C. Portola Avenue: from College Drive to Gerald Ford Drive D. Southern half of Gerald Ford Drive: from Portola Avenue to Cook Street E. University Park Drive: from College Drive to Cook Street F. Technology Drive: from College Drive to Gerald Ford Drive G. Pacific Avenue: from College Drive to Gerald Ford Drive H. College Drive: from Portola Avenue to Frank Sinatra Drive to.o3z s,3 os. A-1 140 In-tract streets III. Water Improvements A. University Park Drive: from West intersection College Drive to East intersection College Drive B. Technology Drive: from College Drive to Gerald Ford Drive C. Pacific Avenue: from College Drive to Gerald Ford Drive D. College Drive: from Portola Avenue to Frank Sinatra Drive E. Well Sites (including land acquisition and improvements) to be located at four sites to be determined by the Coachella Valley Water District concurrently with land plan, final tentative map(s), or similar document(s) (as appropriate) to be approved by the City's Planning Commission and City Council. The tentatively approved locations of the well sites are as follows: 1. Adjacent to Gerald Ford Drive between Pacific Avenue and Technology Drive; 2. Northeast corner of College Drive and Portola Avenue; 3. Adjacent to University Park Drive close to the western intersection with College Drive; and 4. Adjacent to College Drive South of University Park Drive F. In-tract water facilities G. Water improvements to be funded from water capacity and water supplemental fees IV. Traffic Sianals A. The intersection of Cook Street/Gerald Ford (modified) B. The intersection of Cook Street/University Park Drive (modified) C. The intersection of Frank Sinatra Drive/College Drive D. The intersection of Portola Avenue/College Drive E. Signals to be located on the south side of the intersection of Gerald Ford Drive/Pacific Avenue F. Signals to be located on the south side of the intersection of Gerald Ford Drive/Technology Drive G. Signals to be located on the south side of the intersection of Gerald Ford Drive/Portola Avenue (cost participation only) V. Sewer Improvements A. Technology Drive: from College Drive to Gerald Ford Drive B. Pacific Avenue: from College Drive to Gerald Ford Drive C. College Drive: from the West intersection University Park Drive to Technology Drive to North of Frank Sinatra Drive i,.o.o z s,os. A-2 141 D. University Park Drive: from West intersection College Drive to Southwest of West intersection of College Drive and West of the East intersection College Drive to the East intersection College Drive E. In-tract sewer improvements F. Sewer improvements to be funded from sewer connection fees VI. Storm Drain Improvements A. Pacific Avenue: Catch basins and interim-condition retention basins on the east and west sides of Pacific, adjacent to Gerald Ford Drive B. College Drive: Catch basins and interim-condition retention basin on the southwest corner of College Drive and University Park Drive (west intersection); catch basins on the east and west sides of the intersection with Technology Drive and a permanent retention basin along Technology Drive; and a catch basin and interim-condition retention basin on the east side of College Drive south of the east intersection with University Park Drive C. University Park Drive: Catch basins on the east and west sides of University Park Drive at the west intersection with College Drive and an interim- condition retention basin in the southwestern corner of the intersection; catch basins on the north and south sides of University Park Drive and an interim-condition retention basin in the northwest quadrant of the east intersection of College Drive and University Park Drive; and, as indicated above under Vl. B., a catch basin and interim-condition retention basin on the south side of University Park Drive, west of Cook Street D. Technology Drive: Catch basins on the east and west sides of Technology Drive and an interim-condition retention basin west of Technology Drive and south of Gerald Ford Drive E. Gerald Ford Drive: Catch basin and interim-condition retention basin between Pacific and Technology Drive on the south side of Gerald Ford Drive; as indicated above under VI.A., catch basin and interim-condition retention basin on the south side of Gerald Ford Drive west of Pacific Avenue; and, as indicated above under VI.D., catch basin and interim- condition retention basin west of Technology Drive F. Cook Street: As indicated above under VI.B., catch basin and interim- condition retention basin south of University Park Drive, west side of Cook Street G. In-tract storm drains VII. Utilities Improvements A. Frank Sinatra Drive: from West of Cook Street to College Drive B. University Park Drive: from West intersection College Drive to Cook Street C. Technology Drive: from College Drive to Gerald Ford Drive D. Pacific Avenue: from College Drive to Gerald Ford Drive E. College Drive: from Portola Avenue to Frank Sinatra Drive to.o3z s,3 os. A-3 142 F. Southern half of Gerald Ford Drive: from Technology Drive to PacificAvenue VIII. Park Imqrovements and Park Site Land Acquisition (including, but not limited to, site development, lighting and landscaping improvements, restroom facilities, age- appropriate tot lots, sand volleyball and basketball facilities, picnic pavilions, greenspace (including without limitation greenspace large enough for sports activities), shade structures, walking paths, water spray features, dog park improvements, and parking improvements) A. Park A(approximately 2 acres) — Generally surrounded by Portola Avenue, College Drive, Pacific Avenue and Gerald Ford Drive B. Park B(approximately 4.5 acres) — Generally surrounded by Gerald Ford Drive, Pacific Avenue, College Drive and to the west of the intersection of College Drive and University Park Drive C. Park C(approximately 2.3 acres)— Located in the southwest corner of the west intersection of University Park Drive and College Drive D. Park D(approximately 2.8 acres)— Generally surrounded by College Drive and University Park Drive IX. Landscapinq (includes all planting, irrigation, trees, and necessary hardscape/rocking) A. All street median areas as well as parkway areas (listed under Section II) between the back of curb and gutter and street right of way (excluding the sidewalk) will be landscaped. to.o3z s,3 os. A-4 143 EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT FOR CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT No. 2005-1 UNIVERSITY PARK) see attached] to.o3z s,3 os. B-1 144 145 EXHIBIT "C" MITIGATION, MONITORING AND REPORTING PLAN see attached] to.o z s,os. C-I 146 Environmental Mitigation Monitoring and Reporting Program for CFD 2005-1 University Park AUTHORITY This Environmental Mitigation Monitoring and Reporting Program has been prepared pursuant to Section 21081.6 of the California Environmental Quality Act, known as CEQA (Public Resources Code Section 21000 et seq.), to provide for the monitoring of mitigation measures required of the University Park CFD 2005-1 Project, as set forth in the Mitigated Negative Declaration prepared for the project. This report will be kept on file in the offices of the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California 92260. MONITORING SCHEDULE Prior to the issuance of pernuts, while detailed development plans are being prepared for approval by City staff, City staff will be responsible for ensuring compliance with mitigation monitoring applicable to the project design phase. City staff will prepare or cause to be prepared reports identifying compliance with mitigation measures. Once construction has begun and is underway, monitoring of the mitigation measures associated with construction will be included in the responsibilities of designated City staff, who shall prepare or cause to be prepared reports of such monitoring periodically until construction has been completed. Once construction has been completed, the City will monitor the project as appropriate and provided in the monitoring plan. FORMAT OF MITIGATION MONITORING MATRIX The mitigation monitoring matrix on the following pages identifies the environmental issue areas for which monitoring is required, the required mitigation measures, the time frame for monitoring, and the responsible monitoring agencies. P6401.1032\864795.4 147 1 ' oc O O o- mo 1 O o Y y o 0 O O 7 C. Q a—` a a o co o o v T_ N O a N '4 ° •- 0 L, , C Q ~ 6O C•«- d a 4 U 1 O D N C't'j l O O C p O Y G a w i o c p t 4- St ` o- l C O o. a oci- o •- c o t o r Q 2 0 a 6, L o o c o = a v °" p1 O in NV, w r s r d o d d 6, S1 . 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O C "r o , F', a o ° m ' +a °' $ a, 4 ° 02 a N O O ' ' d v . % " f d c c W 151 RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT TO DECLARE THE NECESSITY TO INCUR BONDED INDEBTEDNESS WITHIN CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 UNIVERSITY PARK) RECITALS: WHEREAS, in accordance with a request set forth in a petition signed by the owners of certain land proposed for inclusion in a proposed community facilities district the "Petitioning Landowners"), the City Council (the "City Council") of the City of Palm Desert, California (the "City"), has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 (University Park) and to Authorize the Levy of a Special Tax within City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Intention to Establish District') stating its intention to conduct proceedings to form City of Palm Desert Community Facilities District No. 2005-1 University Park) (the "District') pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code the "Act') to finance certain public facilities to serve the District (the "Original Facilities"), including incidental expenses, as further provided in the Resolution of Intention-, and WHEREAS, the City Council has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Incur Bonded Indebtedness within Proposed City of Palm Desert Community Facilities District No. 2005- 1 (University Park)" (the "Resolution of Intention to Incur Bonded Indebtedness") stating its intention to authorize the issuance and sale of one or more series of bonds in the maximum aggregate principal amount of $70,000,000-1 and WHEREAS, the Resolution of Intention to Establish District and the Resolution of Intention to Incur Bonded Indebtedness set December 8, 2005 (the "Original Hearing Date"), as the date of a public hearing on the establishment of the District, the extent of the District, the furnishing of Original Facilities to serve the District, the proposed rate and method of apportionment of the special tax within the District (the "Rate and Method"), and the proposed debt issue-, and WHEREAS, a notice of the public hearing was published and mailed to all landowners proposed to be included in the District in accordance with the Act-, and WHEREAS, prior to the Original Hearing Date, the Petitioning Landowners made the determination to exclude the development impact fees of the Palm Springs Unified School District and the school improvements to be constructed thereby (the "School Facilities") from the list of public facilities to be financed by the District, in the interest of P6401.1032 963109.2 W \Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Reso Declaring Necessity to incur bonded indebtedness (Palm Desert CFD 2005-1) DOC 152 applying a greater portion of the District's financing to the facilities to be owned by the City and the Coachella Valley Water District (the "CVWD"); and WHEREAS, prior to the Original Hearing Date, there was filed with the City Council a report containing a description of the facilities necessary to adequately meet the needs of the District and an estimate of the cost of financing such facilities as required by Section 53321.5 of the Act (the "Report"), which Report amends the list of Original Facilities to delete the School Facilities from the list of public facilities to be financed by the District; and WHEREAS, Section 53316.2 of the Act permits the District to finance facilities to be owned or operated by a public agency other than the City, but only pursuant to a joint community facilities agreement ("JCFA") adopted by resolution of each of the public agencies that are party thereto and prior to the City Council's adoption of a resolution of formation to establish the District; and WHEREAS, prior to the Original Hearing Date, representatives of the Petitioning Landowners met with representatives of the CVWD to discuss the approval of a JCFA pursuant to Section 53316.2 of the Act, regarding certain of the Original Facilities which, if approved by the qualified electors within the District, would be owned and operated by the CVWD; and WHEREAS, the CVWD indicated that it would need more time beyond the Original Hearing Date to consider the terms and conditions of the proposed JCFA and for the Board of Directors of the CVWD to approve the JCFA by resolution; and WHEREAS, the aforementioned public hearing was duly continued from December 8, 2005 in the City Council Chamber to 4 p.m. on January 12, 2006 in the City Council Chamber upon a finding by the City Council that, pursuant to Section 53325 of the Act, it is appropriate and necessary to continue such hearing, in order to ensure adequate time to address the complexities of the District relating to the JCFA and to ensure adequate opportunity for public comment and participation, including without limitation the comment and participation of the CVWD, with respect to the proposed Original Facilities and JCFA; and WHEREAS, prior to the reconvening of the public hearing on January 12, 2006, it was determined that certain park improvements and park land site acquisition identified in Sections VIII.E. and VIII.F. of Exhibit "A" of the Resolution of Intention to Establish District the "Parks E and F Improvements"), also described as "Park E" and "Park F," respectively, will not be owned by the City or any other governmental entity and may not be financed by the District by the issuance of its tax-exempt bonds; and WHEREAS, Section 53325 of the Act permits the City Council to modify the Resolution of Intention to Establish District by eliminating proposed facilities, if the City Council makes such modifications at the aforementioned public hearing; and P6401.1032 863109.2 2 153 WHEREAS, at the public hearing, the City Council adopted a resolution entitled, "A Resolution of the City Council of the City of Palm Desert Modifying the Resolution of Intention to Eliminate Certain Facilities From Financing by Proposed City of Palm Desert Community Facilities District No. 2005-1 (University Park)," which is on file in the office of the City Clerk of the City and modifies and amends the Resolution of Intention to Establish District by amending the list of Original Facilities therein to eliminate the School Facilities and the Parks E and F Improvements (as amended, the "Facilities"); and WHEREAS, at the public hearing, all persons desiring to be heard on all matters pertaining to the establishment of the District, to the extent of the District, to the furnishing of Facilities to serve the District, to the proposed Rate and Method, and to the proposed debt issues were heard and a full and fair hearing was held; and WHEREAS, at the public hearing evidence was presented to the City Council on the matters before it and the City Council at the conclusion of the hearing is fully advised as to all matters relating to the formation of the District, the levy of the special tax, and the incurrence of bonded indebtedness therein; and WHEREAS, subsequent to the public hearing, the City Council adopted a Resolution entitled "A Resolution of Formation of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 University Park), to Make Environmental Findings With Respect Thereto, to Adopt a Mitigated Negative Declaration in Connection Therewith, to Establish an Appropriations Limit Therefor, to Authorize the Levy of a Special Tax Therein, and to Submit the Establishment of an Appropriations Limit and the Levy of a Special Tax to the Qualified Electors Thereof' (the "Resolution of Formation"); and WHEREAS, no written protests with respect to the matters material to the questions set forth in the Resolution of Intention to Incur Bonded Indebtedness have been filed with the City Clerk. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT: 1. Recitals. The above recitals are all true and correct. 2. Necessary to Incur Bonded Indebtedness. The City Council hereby declares that it is necessary to incur a bonded indebtedness for the District in an aggregate principal amount not to exceed $70,000,000 as authorized under the terms and provisions of the Act. 3. Purpose. The bonded indebtedness will be incurred for the purpose of financing the costs of the Facilities, as provided in the Resolution of Formation including, but not limited to, the financing of the costs associated with the issuance of the bonds and all other costs necessary to finance the Facilities which are permitted to be financed pursuant to the Act. P6401.1032 863109.2 J 154 4. Special Tax. The whole of the property within the District, other than property exempted from the special tax pursuant to the provisions of the Rate and Method set forth in Exhibit "B" to the Resolution of Formation, shall pay for the bonded indebtedness through the levy of the special tax. The special tax is to be apportioned in accordance with such Rate and Method. 5. Terms. It is the intent of the City Council, acting as the legislative body of the District, to authorize the issuance and sale of one or more series of bonds in the maximum aggregate principal amount of $70,000,000, bearing interest payable annually or semi-annually, or in part annually and in part semiannually, at a maximum interest rate of twelve percent (12%) per annum or such rate not in excess of the maximum rate permitted by law at the time the bonds are issued; provided the first interest payment may be for a period of less than six months, and the actual rate or rates and times of payment shall be determined at the time or times of sale. The term of the bonds of each series shall be determined pursuant to a resolution of the City Council authorizing the issuance of such series, but such term shall in no event exceed forty (40) years from the date of issuance of such series of bonds or such longer term as is then permitted by law. 6. Accountability Measures. Pursuant to and in compliance with the provisions of Article 1.5 (commencing with Section 53410) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code, the City Council hereby establishes the following accountability measures pertaining to any bonded indebtedness incurred by or on behalf of the District: a. Such bonded indebtedness shall be incurred for the specific purposes set forth in Section 3 above. b. The proceeds of any such bonded indebtedness shall be applied only to the specific purposes identified in Section 3 above. c. The document or documents establishing the terms and conditions for the issuance of any such bonded indebtedness shall provide for the creation of an account or accounts into which the proceeds of such indebtedness shall be deposited. d. The City Manager, or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required by Government Code Section 53411. 7. Election. The proposition related to the incurring of the bonded indebtedness and the proposition relating to the levy of the special tax shall be combined into one ballot proposition, and shall be submitted to the qualified voters of the District, together with a proposition to establish an appropriations limit for the District. The election shall be held on January 12, 2006, in the City Council Chamber, 73-510 Fred Waring Drive, Palm Desert, California 92260. Pursuant to Section 53327 of P6401.1032 863109.2 4 155 the Act, the election shall be conducted by mail ballot in accordance with the California Elections Code and the voted ballots shall be returned to the City Clerk immediately following adoption of a resolution calling the special election, but in any event no later than 8 p.m. on January 12, 2006. The election shall be closed when the qualified electors have voted, but not later than 8 p.m. on January 12, 2006. PASSED AND ADOPTED this 12th day of January, 2006, by the following vote: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers Jim Ferguson, Mayor ATTEST: Rachelle D. Klassen, City Clerk P6401.1032 863109.2 S 156 RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT CALLING A SPECIAL ELECTION WITHIN CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 UNIVERSITY PARK) RECITALS: WHEREAS, on January 12, 2006, this City Council adopted a resolution entitled A Resolution of Formation of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 (University Park), to Make Environmental Findings With Respect Thereto, to Adopt a Mitigated Negative Declaration in Connection Therewith, to Establish an Appropriations Limit Therefor, to Authorize Levy of a Special Tax Therein, and to Submit the Establishment of an Appropriations Limit and the Levy of a Special Tax to the Qualified Electors Thereof' the "Resolution of Formation"), ordering the formation of the City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District"), establishing an appropriations limit for the District and authorizing levy of a special tax (the "Special Tax") on property within the District, subject to approval of the qualified electors of the District at a special election referred to below, pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act"); and WHEREAS, on January 12, 2006, this City Council also adopted a resolution entitled "A Resolution of the City Council of the City of Palm Desert to Declare the Necessity to Incur Bonded Indebtedness within City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Necessity to Incur Bonded Indebtedness"), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $70,000,000-1 and WHEREAS, pursuant to the provisions of said resolutions, the propositions of the levy of said Special Tax, the establishment of the appropriations limit and the incurring of the bonded indebtedness will be submitted to the qualified electors of the district as required by the Act. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT: 1. Recitals. The above recitals are all true and correct. 2. Ballot Propositions. Pursuant to Sections 53325.7, 53326, 53351, and 53353.5 of the Act, the proposition relating to the incurring of the bonded indebtedness and the proposition relating to the levy of the Special Tax shall be combined into one ballot proposition, and together with the proposition for the establishment of 1)6401.1032\963 319.2 W \ Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Reso Calling Special Election (Palm Desert CFD 2005-1) DOC 1 157 the appropriations limit, shall be submitted to the qualified electors of the District as required by the Act. If (a) the combined proposition for the levy of the Special Tax and the incurring of the bonded indebtedness and (b) the proposition for the establishment of the appropriations limit each receive the approval of more than two-thirds of the votes cast on the proposition, one or more series of bonds may be authorized, issued and sold for the purposes set forth herein, the Special Tax may be levied, and the appropriations limit may be established as provided for in the Resolution of Formation. The ballot propositions shall be in the form attached hereto as Exhibit "A" and by this reference incorporated herein, and said form of ballot is hereby approved. 3. Electors Determined. The City Council finds, based on information provided by the Registrar of Voters of the County of Riverside, that fewer than 12 registered voters have been registered to vote within the territory of the District for each of the 90 days preceeding the close of the public hearing heretofore conducted and concluded by the City Council for the purposes of these proceedings. Accordingly, and pursuant to Section 53326 of the Act, the City Council finds that for purposes of these proceedings the qualified electors are the landowners within the District. Each landowner shall have one vote for each acre or portion thereof that he or she owns within the District, as provided in Section 53326 of the Act. The City Council finds that there are eight (8) qualified electors in the District. 4. Election. This City Council hereby calls a special election to consider the propositions described in Section 2 above, which election shall be held on January 12, 2006 in the City Council Chamber, 73-510 Fred Waring Drive, Palm Desert, California 92260, immediately following adoption of this Resolution. The City Clerk is hereby designated as the official to conduct said election. It is hereby acknowledged that the City Clerk has on file a copy of this Resolution and a map of the boundaries of the District. The voted ballots shall be returned to the City Clerk immediately following adoption of this Resolution, but in any event no later than 8 p.m. on January 12, 2006, and when the qualified electors have voted, but not later than 8 p.m. on January 12, 2006, the election shall be closed. 5. Mail Ballot. Pursuant to Section 53327 of the Act, the election shall be conducted by mail ballot in accordance with the California Elections Code. This City Council hereby finds that paragraphs (a), (b), (c)(1), and (c)(3) of Section 4000 of the California Elections Code are applicable to this special election. 6. Ballot. This City Council acknowledges that the City Clerk has caused to be delivered to the qualified electors of the District a ballot in the form set forth in Exhibit "A" hereto. 116401.1032\963 319.2 W \Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Reso Calling Special Election (Palm Desert CFD 2005-1) DOC 2 158 The ballot was accompanied by all supplies and written instructions necessary to the use and return of the ballot. The envelope to be used to return the ballot was enclosed with the ballot, had the return postage prepaid, and contained the following- (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is owner of record or authorized representative of the owner of record entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board. Analysis and arguments with respect to the ballot measures have been waived by the qualified electors, by unanimous written consent waiving all applicable time limits and requirements pertaining to the conduct of said special election, as permitted by Section 53327 of the Act. The City Council hereby concurs in said waiver. 7. Return of Ballots. The City Clerk shall accept the ballot of the qualified electors in the City Council Chambers upon and prior to the adoption of this Resolution, whether said ballot be personally delivered or received by mail. The City Clerk shall have available a ballot which may be marked at said location on the election day by said qualified electors. 8. Waiver of Time Limits for Election. This City Council hereby further finds that the provision of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the resolution calling the election to elapse before said special election is for the protection of the qualified electors of the District. The unanimous written consent of the qualified electors of the District waiving all applicable time limits and requirements pertaining to the conduct of said special election has been received. Accordingly, this City Council finds and determines that said qualified electors have been fully apprised of and have agreed to the shortened time for the election and have thereby been fully protected in these proceedings. This City Council also finds and determines that the City Clerk has concurred in the shortened time for the election. 9. Publication. The City Clerk is hereby directed to cause to be published in a newspaper of general circulation circulating within the area of the District a copy of the Resolution of Necessity to Incur Bonded Indebtedness as required by Section 53352 of the Act. 116401.1032\963 319.2 W \Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Reso Calling Special Election (Palm Desert CFD 2005-1) DOC J 159 PASSED AND ADOPTED this 12th day of January, 2006, by the following vote: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers Jim Ferguson, Mayor ATTEST: Rachelle D. Klassen, City Clerk 116401.10 32\963 ;19.2 W \Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Reso Calling Special Election (Palm Desert CFD 2005-1) DOC 4 160 EXHIBIT "A" OFFICIAL BALLOT SPECIAL ELECTION City of Palm Desert Community Facilities District No. 2005-1 University Park) This ballot is for a special landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Palm Desert no later than 8 p.m. on January 12, 2006, either by mail or in person. The City Clerk's office is located at 73-510 Fred Waring Drive, Palm Desert, California, 92260. This ballot represents votes. To vote, mark a cross (X) in the voting square after the word "YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Palm Desert and obtain another. PROPOSITION A: Shall the City of Palm Desert, on behalf of City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District"), subject to the Yes accountability measures provided in the resolutions entitled "A Resolution of Formation u of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 (University Park), to Make Environmental No Findings With Respect Thereto, to Adopt a Mitigated Negative Declaration In Connection Therewith, to Establish an Appropriations Limit Therefor, to Authorize the Levy of a Special Tax Therein, and to Submit the Establishment of an Appropriations Limit and the Levy of a Special Tax to the Qualified Electors Thereof' (the "Resolution of Formation") and "A Resolution of the City Council of the City of Palm Desert to Declare the Necessity to Incur Bonded Indebtedness within City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Necessity"), incur an indebtedness and issue one or more series of bonds in the maximum aggregate principal amount of $70,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds, to finance the facilities and incidental expenses described in the Resolution of Formation and the Resolution of Necessity; and shall a special tax with a rate and method of apportionment as provided in the Resolution of Formation and the Resolution of Necessity be levied annually on lands within the District to pay for the facilities, incidental expenses, and other purposes described in the Resolution of Formation and the Resolution of Necessity, including the payment of principal and interest on bonds issued to finance the facilities, incidental expenses, and the costs of the City of Palm Desert in administering the District? PROPOSITION B: Shall City of Palm Desert Community Facilities District No. 2005-1 Yes University Park) (the "District") establish an Article XIIIB appropriations limit for the District at an amount equal to all the proceeds of the special tax collected annually within the District and as defined by Article XIIIB of the California Constitution, as No adjusted for changes in the cost of living and changes in population? 116401.10 32\963319.2 A-1 161 116401.10 32\963319.2 A-2 162 RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT DECLARING THE RESULTS OF A SPECIAL ELECTION IN CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 UNIVERSITY PARK) AND DIRECTING THE RECORDING OF A NOTICE OF SPECIAL TAX LIEN RECITALS: WHEREAS, in proceedings heretofore conducted by the City Council of the City of Palm Desert (the "City Council") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the "Act'), the City Council adopted on January 12, 2006 a resolution entitled "A Resolution of the City Council of the City of Palm Desert Calling a Special Election Within City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution Calling Election"), calling for a special election (the "Special Election") of the qualified electors within Community Facilities District No. 2005-1 (University Park) (the "District'); and WHEREAS, pursuant to the terms of said resolution, which are by this reference incorporated herein, the Special Election was held on January 12, 2006, and the City Clerk has on file a Certificate of the City Clerk as to the Results of the Canvass of the Election Returns (the "Certificate"), a copy of which is attached hereto as Exhibit "A" and by this reference incorporated herein; and WHEREAS, this City Council has reviewed said Certificate and hereby approves it. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT: 1. Recitals. The above recitals are all true and correct. 2. Ballot Propositions. The issues presented at the Special Election were Propositions A and B, as set forth in Exhibit "B" attached hereto and by this reference incorporated herein. 3. Election Results. The results of the Special Election are as set forth in the Certificate on file with the City Clerk and attached hereto as Exhibit "A". Pursuant to the Certificate, Propositions A and B presented at the Special Election were approved by more than two-thirds of the votes cast by the qualified electors of the District. 116401 . 1 O 32\86 ; 32O.2 1 W \ Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Reso Declaring Results of Special Election (Palm Desert CFD 2005-1) DOC 163 4. Ballot Propositions Authorized. This City Council, acting in its capacity as legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition A for the purposes described therein, to take the necessary steps to levy the special tax authorized by Proposition A, and to issue one or more series of bonds in an amount not to exceed $70,000,000 as specified in Proposition A. The appropriations limit as specified in Proposition B is hereby established. 5. Findina of Validitv. It is hereby found that all prior proceeding and actions taken by this City Council with respect to the District were valid and in conformity with the Act. 6. Notice of Special Tax Lien. The City Clerk is hereby directed to record in the office of the County Recorder of the County of Riverside within fifteen (15) days of the date hereof a notice of special tax lien with respect to the District in substantially the form required by California Streets and Highways Code Section 3114.5. PASSED AND ADOPTED this 12th day of January, 2006, by the following vote: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers Jim Ferguson, Mayor ATTEST: Rachelle D. Klassen, City Clerk 11640 . 032\963320.2 2 W \Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Reso Declaring Results of Special Election (Palm Desert CFD 2005-1) DOC 164 EXHIBIT "A" CERTIFICATE OF THE CITY CLERK AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 UNIVERSITY PARK) I, Rachelle D. Klassen, City Clerk of the City of Palm Desert, hereby certify that I canvassed the returns of the Special Election in the City of Palm Desert Community Facilities District No. 2005-1 (University Park) and that the election was held in the Chambers of the City Council at 73-510 Fred Waring Drive, Palm Desert, California, 92260 on January 12, 2006. I further certify that the total number of ballots cast in said election and the total number of votes cast for and against Propositions A and B are full, true and correct: Qualified Eligible Votes Voters Cast Yes No Proposition A Proposition B IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 12th day of January, 2006. By: Rachelle D. Klassen City Clerk City of Palm Desert 116401.10 32\963320.2 A-1 165 EXHIBIT "B" PROPOSITION A: Shall the City of Palm Desert, on behalf of City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District"), subject to the accountability measures provided in the resolutions entitled "A Resolution of Formation of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 (University Park), to Make Environmental Findings With Respect Thereto, to Adopt a Mitigated Negative Declaration In Connection Therewith, to Establish an Appropriations Limit Therefor, to Authorize the Levy of a Special Tax Therein, and to Submit the Establishment of an Appropriations Limit and the Levy of a Special Tax to the Qualified Electors Thereof' (the "Resolution of Formation") and "A Resolution of the City Council of the City of Palm Desert to Declare the Necessity to Incur Bonded Indebtedness within City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Necessity"), incur an indebtedness and issue one or more series of bonds in the maximum aggregate principal amount of $70,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds, to finance the facilities and incidental expenses described in the Resolution of Formation and the Resolution of Necessity; and shall a special tax with a rate and method of apportionment as provided in the Resolution of Formation and the Resolution of Necessity be levied annually on lands within the District to pay for the facilities, incidental expenses, and other purposes described in the Resolution of Formation and the Resolution of Necessity, including the payment of principal and interest on bonds issued to finance the facilities, incidental expenses, and the costs of the City of Palm Desert in administering the District? PROPOSITION B: Shall City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District") establish an Article XIIIB appropriations limit for the District at an amount equal to all the proceeds of the special tax collected annually within the District and as defined by Article XIIIB of the California Constitution, as adjusted for changes in the cost of living and changes in population? 116401.1032\96 3 320.2 B-1 166 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THAT DISTRICT RECITALS: WHEREAS, in accordance with a request set forth in a petition signed by the owners of certain land proposed for inclusion in a proposed community facilities district the "Petitioning Landowners"), the City Council of the City of Palm Desert (the "City Council"), has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 (University Park) and to Authorize the Levy of A Special Tax within City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Intention to Establish District") stating its intention to conduct proceedings to form City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act") to finance certain public facilities (the "Original Facilities") to serve the area of land hereinafter described-, and WHEREAS, the City Council has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Incur Bonded Indebtedness within Proposed City of Palm Desert Community Facilities District No. 2005- 1 (University Park)" (the "Resolution of Intention to Incur Bonded Indebtedness") stating the City Council's intention, acting as the legislative body of the District, to authorize the issuance and sale of one or more series of bonds in the maximum aggregate principal amount of $70,000,000- 1 and WHEREAS, the Resolution of Intention to Establish District and the Resolution of Intention to Incur Bonded Indebtedness set December 8, 2005 (the "Original Hearing Date"), as the date of a public hearing on the establishment of the District, the extent of the District, the furnishing of Original Facilities to serve the District, the proposed rate and method of apportionment of the special tax within the District (the "Rate and Method"), and the proposed debt issue-, and WHEREAS, a notice of the public hearing was published and mailed to all landowners proposed to be included in the District in accordance with the Act-, and WHEREAS, prior to the Original Hearing Date, the Petitioning Landowners made the determination to exclude the development impact fees of the Palm Springs Unified School District and the school improvements to be constructed thereby (the "School Facilities") from the list of public facilities to be financed by the District, in the interest of P6401.1032 96 321.2 W \Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Ordinance Authorizing Levy of Special Tax (Palm Desert CFD 2005-1) DOC 1 167 applying a greater portion of the District's financing to the facilities to be owned by the City and the Coachella Valley Water District (the "CVWD"); and WHEREAS, prior to the Original Hearing Date, there was filed with the City Council a report containing a description of the facilities necessary to adequately meet the needs of the District and an estimate of the cost of financing such facilities as required by Section 53321.5 of the Act (the "Report"), which Report amends the list of Original Facilities to delete the School Facilities from the list of public facilities to be financed by the District-, and WHEREAS, Section 53316.2 of the Act permits the District to finance facilities to be owned or operated by a public agency other than the City, but only pursuant to a joint community facilities agreement ("JUX) adopted by resolution of each of the public agencies that are party thereto and prior to the City Council's adoption of a resolution of formation to establish the District-, and WHEREAS, prior to the Original Hearing Date, representatives of the Petitioning Landowners met with representatives of the CVWD to discuss the approval of a JCFA pursuant to Section 53316.2 of the Act, regarding certain of the Original Facilities which, if approved by the qualified electors within the District, would be owned and operated by the CVWD; and WHEREAS, the CVWD indicated that it would need more time beyond the Original Hearing Date to consider the terms and conditions of the proposed JCFA and for the Board of Directors of the CVWD to approve the JCFA by resolution-, and WHEREAS, the aforementioned public hearing was duly continued from December 8, 2005 in the City Council Chamber to 4 p.m. on January 12, 2006 in the City Council Chamber upon a finding by the City Council that, pursuant to Section 53325 of the Act, it is appropriate and necessary to continue such hearing, in order to ensure adequate time to address the complexities of the District relating to the JCFA and to ensure adequate opportunity for public comment and participation, including without limitation the comment and participation of the CVWD, with respect to the proposed Original Facilities and JCFA; and WHEREAS, prior to the reconvening of the public hearing on January 12, 2006, it was determined that certain park improvements and park land site acquisition identified in Sections VIII.E. and VIII.F. of Exhibit "A" of the Resolution of Intention to Establish District the "Parks E and F Improvements"), also described as "Park E" and "Park F," respectively, will not be owned by the City or any other governmental entity and may not be financed by the District by the issuance of its tax-exempt bonds-, and WHEREAS, Section 53325 of the Act permits the City Council to modify the Resolution of Intention to Establish District by eliminating proposed facilities, if the City Council makes such modifications at the aforementioned public hearing-, and P6401.1032 96 321.2 W \Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Ordinance Authorizing Levy of Special Tax (Palm Desert CFD 2005-1) DOC 2 168 WHEREAS, at the public hearing, the City Council adopted a resolution entitled, "A Resolution of the City Council of the City of Palm Desert Modifying the Resolution of Intention to Eliminate Certain Facilities From Financing by Proposed City of Palm Desert Community Facilities District No. 2005-1 (University Park)," which is on file in the office of the City Clerk of the City and modifies and amends the Resolution of Intention to Establish District by amending the list of Original Facilities therein to eliminate the School Facilities and the Parks E and F Improvements (as amended, the "Facilities"); and WHEREAS, at the public hearing, all persons desiring to be heard on all matters pertaining to the establishment of the District, to the extent of the District, to the furnishing of Facilities to serve the District, to the proposed Rate and Method, and to the proposed debt issues were heard and a full and fair hearing was held; and WHEREAS, at the public hearing evidence was presented to the City Council on the matters before it and the City Council at the conclusion of the hearing is fully advised as to all matters relating to the formation of the District, the levy of the special tax, and the incurrence of bonded indebtedness therein; and WHEREAS, subsequent to the public hearing, the City Council adopted a Resolution entitled "A Resolution of Formation of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 University Park), to Make Environmental Findings With Respect Thereto, to Adopt a Mitigated Negative Declaration in Connection Therewith, to Establish an Appropriations Limit Therefor, to Authorize the Levy of a Special Tax Therein, and to Submit the Establishment of an Appropriations Limit and the Levy of a Special Tax to the Qualified Electors Thereof' (the "Resolution of Formation"); and WHEREAS, subsequent to the public hearing, the City Council also adopted a resolution entitled "A Resolution of the City Council of the City of Palm Desert to Declare the Necessity to Incur Bonded Indebtedness within City of Palm Desert Community Facilities District No. 2005-1 (University Park)" which determined the necessity to incur bonded indebtedness in the maximum principal amount of $70,000,000-1 and WHEREAS, subsequent to the public hearing, the City Council also adopted a resolution entitled "A Resolution of the City Council of the City of Palm Desert Calling a Special Election within City of Palm Desert Community Facilities District No. 2005-1 University Park)" (the "Resolution Calling a Special Election") which called a special election of the qualified electors of the District; and WHEREAS, pursuant to the terms of the Resolution Calling a Special Election, an election was held within the District at which the qualified electors of the District approved the establishment of an appropriations limit for the District, the incurrence of bonded indebtedness, and the levy of a special tax within the District; and WHEREAS, on January 12, 2006, the City Council adopted a resolution entitled "A Resolution of the City Council of the City of Palm Desert Declaring the Results of a Special P6401.1032 96 321.2 W \Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Ordinance Authorizing Levy of Special Tax (Palm Desert CFD 2005-1) DOC J 169 Election in City of Palm Desert Community Facilities District No. 2005-1 (University Park) and Directing the Recording of a Notice of Special Tax Lien" (the "Resolution Declaring Results of Election") which certified the results of the January 12, 2006 election conducted by the City Clerk, which results showed that more than two-thirds of the votes cast in the District were in favor of the proposition to establish an appropriations limit for the District, incur bonded indebtedness and levy the special tax. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY ORDAIN AS FOLLOWS: 1. Recitals. The above recitals are all true and correct. 2. Authorization of Levv of Special Tax. By passage of this Ordinance, the City Council authorizes the levy of a special tax within the District at the maximum rates and in accordance with the Rate and Method set forth in Exhibit "B" to the Resolution of Formation which is on file in the office of the City Clerk and incorporated herein by reference. 3. Annual Rate Determination. The City Council is hereby further authorized to determine on or before August 10 of each year, or such other date as is established by law or by the County Auditor -Controller of the County of Riverside, the specific special tax to be levied on each parcel of land in the District, except that the special tax rate to be levied shall not exceed the maximum rates set forth in the Rate and Method, but the special tax may be levied at a lower rate. 4. Exemption of Government Property. Properties or entities of the state, federal, or other local governments shall be exempt from the above -referenced and approved special tax only to the extent set forth in the Rate and Method, and otherwise shall be subject to tax consistent with the provisions of Section 53317.3 and 53317.5 of the Act. 5. Use of Collections. All of the collections of the special tax shall be used only as provided for in the Act and in the Resolution of Formation. The special tax shall be levied only so long as needed for its purpose as described in the Resolution of Formation. 6. Collection. The special tax shall be collected in the same manner as ordinary ad valorem taxes and shall be subject to the same penalties and the same procedure, sale and lien in any case of delinquency as applicable for ad valorem property taxes-, provided, however, that the special tax may be collected by direct billing by the City of the property owners in the District or in such other manner as may be provided by the City Council. In addition, the provisions of Section 53356.1 of the Act shall apply to any delinquent Special Tax payments. P6401.1032 96 321.2 W \Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Ordinance Authorizing Levy of Special Tax (Palm Desert CFD 2005-1) DOC 4 170 7. Authorization. The specific authorization for adoption of this Ordinance is the provisions of Section 53340 of the Act. 8. Severablility. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District, by a Court of competent jurisdiction, that balance of this Ordinance, and the application of the special tax to the remaining parcels within the District shall not be affected. 9. Certification. The City Clerk shall certify to the passage of this Ordinance and cause it to be published or posted in accordance with law. PASSED, APPROVED AND ADOPTED this th day of 2006, by the following vote: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers Jim Ferguson, Mayor ATTEST: Rachelle D. Klassen, City Clerk 116401.1032 96 321.2 W \Agenda Items\2006-Jan 12\Univ Park CFD No 2005-1\Ordinance Authorizing Levy of Special Tax (Palm Desert CFD 2005-1) DOC 5 171 T' CITY OF PALM DESERT NOTICE OF INTENT TO ADOPT A MITIGATED NEGATIVE DECLARATION DATE: November 8, 2005 TO: Responsible and Trustee Agencies / Interested Organizations and Individuals FROM: City of Palm Desert RE: CFD 2005-1 University Park Environmental Assessment District The City of Palm Desert (City), in its capacity as the Lead Agency for this project under the California Environmental Quality Act (CEQA), evaluated the potential environmental impacts of the above referenced project under CEQA. The City has determined through the preparation of an Initial Study that although the project has the potential to result in significant environmental effects, these impacts will not be significant because the mitigation measures described in the detailed Initial Study have been added to the project. The Initial Study meets the requirements of the State of California CEQA, and the State and City Guidelines for the Implementation of CEQA. A Mitigated Negative Declaration will be prepared. This notice constitutes a Notice of Intent (NOI) to adopt the aforementioned Mitigated Negative Declaration. Project Location / Description: The project involves the formation of a Community Facilities District to finance public improvements within a 296-acre vacant site bounded by Portola Avenue, Gerald Ford Avenue, Cook Street and Frank Sinatra Drive. Improvements generally include streets, t affic signals, landscaping, water, sewer and storm drain improvements, and park site land acquisition and improvements. Other Permits: Project involves improvements associated with Palm Springs Unified School District and Coachella Valley Water District. 172 NOTICE OF INTENT TO ADOPT A MITIGATED NEGATIVE DECLARATION NOVEMBER 8, 2005 Toxic Sites: No listed toxic sites are present on the project site. Public Hearing: The City Council public hearing for this item has been set for December 8, 2005, beginning at 4:00 p.m. at the Palm Desert City Council Chamber, 73-510 Fred Waring Drive, Palm Desert, CA 92260. Public Review: The Initial Study and related documents are available for public review daily. Members of the public may view these documents at the Planning Department, 73-510 Fred Waring Drive, Pafm Desert, CA 92260, and submit written comments at, or prior to, the City Council hearing. If anyone challenges the action in court, issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence submitted at, or prior to, the City Council hearing. An opportunity will be given at said hearing for all interested persons to be heard. Questions regarding this case may be directed to Mr. Phil Drell, City of Palm Desert, at 1760) 346-061 1 . Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date. The public comment period on this project is from November 1 to December 2, 2005. All comments and any questions should be directed to: Mr. Phil Drell Director of Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 760) 346-0611 2 173 ENVIRONMENTAL CHECKLIST FORM 1 . Project Title: CFD 2005-1 University Park 2. Lead Agency and Name and Address: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 3. Contact person and Phone Number: Philip Drell, Director Department of Community Development 760) 346-061 1 ext. 481 4.Project Location: Approximately 296 acres of vacant land bounded by Portofa Avenue, Gerald Ford Drive, Cook Street and Frank Sinatra Drive 5. Project Sponsor's Name and Address: City of Palm Desert 6.General Plan Designation: R-L, R-M/R-HO 7. Zoning: PR-5, PCD 8. Description of Project: Formation of a Community Facilities District to finance the improvements shown in attached Exhibit A. 9. Surrounding Land Uses and Setting: (Briefly describe the project's surroundings. Attach additional sheetls) if necessary.! The project is in the northern area of the city near the I-10/Cook Street Interchange. It is bounded by the developing Cal State University/UCR campus on the east, Desert WiHow Goff Resort to the south, single family residential on the west, ancl a gas station, hotel and vacant mixed use designated property on the north. 10. Other public agencies whose approval is required (e.g,, permits, financing approval, or participation agreement): Palm Springs Unified School District Coachella Vailey Water District ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: J Aesthetics Mandatory Findings of Significance d Biological Resources d Air Quality Public Services d Geology/Soils f Hydrology/Water Quality PopulationlHousing Recreation Transportation/Traffic CITY(STANDARD!\SACIJTB\2005\22628.1 PAGE 1 OF 15 FORM "J" 174 DET'ERMINATION(To be completed by the Lead Agency): On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment,and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment,there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the pro,yect proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment,and an ENVIRONMENTAL Il1 PACT REPORT is required. I find that the proposed project MAY have a"potentially significanY' or"poten[ially significant unless mitigated" impact on the environment,but at least one effect 1)has been adequately analyzed in an earlier document pursuant to applicable legal standards,and 2)has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL II'ACT REPORT is required,bui it must analyze only the effects chat remain to be addressed. I find thai although the proposed project could have a significant effect on the environment,because all potentially significant effects(a)have been analyzed adequately in an earlier EIlt or NEGATIVE DECLARATION pursuant to applicable standards, and(b)have been avoided or mitigated pursuant to that earlier EiR or NEGATNE DECLARATION,including revisipns or mitigation measures that aze imposed upon the proposed project,nothing further is required. QS/ Sig ature Dat t ` r\ inted Na e For EVALUATION OF ENVIRONMENTAI.IIvIPACTS: A brief explanation is required for all answers except"No Impact" answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. A"No Impact" answer is adeguately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved(e.g.the project falls outside a fault rupture zone). A"No ImpacY' answer should be explained where it is based on project-specific factors as well as general standards(e.g.the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis). A11 answers must take account of the whole action involved,including off-site as well as on-site,cumulative as well as project-level,indirect as well as direct,and construction as well as operational impacts. Once the lead agency has determined that a pazticular physical impact may occur,then the checklist answers must indicate whether the impact is potentially significant,less than significant with mitigation,or less than significant. Potentially Significant Impact" is appropriate if there is substantial evidence that an effect is significant. If there are one _.. or more"Potentially Significant Impact" entries when the determination is made,an EIR is required. Negative Declaration: Less Than Significant With Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced an effect from"Potentially Significant Impact" to a"Less than Significant Impact."The lead agency must describe the mitigation measures,and briefly explain how they reduce the effect to a less than significant level(midgation measures from Section XVII,"Earlier Analyses," may be cross-referenced). CITY(STANDARD)SACV7'B12005 22628.1 Page 2 of 15 FORM"J" 175 Earlier analyses may be used where,pursuant to the tiering,program ETR,or other CEQA process,an effect has been adequately analyzed in an earlier EIIt or negative declaration. Section 15063(c)(3)(D). In this case,a brief discussion should identify the following: a)Earlier Analyses Used. Identify and state where they are available for review. b)Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an eazlier document pursuant to applicable legal standazds,and state whether such effects were addressed by mitigation measures based on the earlier analysis. c)Mitigation Measures. For effects that are"Less than Significant with Mitigation Measures Incorporaterl," describe the mitigation measares which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the project. Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts e.g.general plans,Zoning ordinances). Reference to a previously prepared or outside document should,where appropriate,include a reference to the page or pages where the statement is substantiated. Supporting Information Sources. A source list should be attached,and other sources used or individuals contacted should be cited in the discussion. This is only a suggested form,and lead agencies are free to use different formats;however,lead agencies should normally address the questions from this checklist that are relevant to a project's environmental effects in whatever format is selected. The explanation of each issue should identify: a)the signi cance criteria or threshold,if any,used to evaluate each question;and b)the mitigation measure identified, if any,to reduce the impact to less than significance. SP,MPLE QUESTION Less Than Significant Potentially With Less Than Significant Mitigation Significant No Issues: Impact Incorporated Impact Irnpact AESTHETICS. Would the project: a)Have a substantial adverse effect on a scenic vista? b)Substantially damage scenic resources,including,but not limited to,tress,rock outcroppings,and historic buildings within a state scenic highway? c)Substantially degrade the existing 0/ visua!character or quality of the site and its surroundings? d)Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? C1TY(STANDARD)\SACUTB 2005 22628.1 Page 3 of 15 FORM"T' 176 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Issues: Impact jncorporated Impact Impact I AGRICUI.TURE RES URCES. In determining whether impacts to agricultural resources are significant environmental effects,lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model(1997)prepared by the California Dept.of Conservation as an optional model to use in assessing unpacts on agriculture and farmland. Would the project: a)Convert Prime Farmland,Unique r Fazmland,or Farmland of Statewide L Imporiance(Farmland),as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the Califomia Resources Agency,to non-agricultural use? b)Conflict with existing zoning for agricultural use,or a Williamson Act contract? c}Involve other changes in the existing environment which,due to their location or nat re,could result in conversion of Farmland,to non- agricultutal use? t1IR QUALITY. Where available,the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a)Conflict with or obstruct icnplementation of the applicable air quality plan? b)Violate any air quality standard or contribute substantialty to an existing or projected air quality violation? c Result in a cumulatively considerable net increase of any criteria pollutant for which the projec[region is nonattainment under an applicable federat or state ambient air quality standazd including releasing emissions which exceed quantitative thresholds for ozone precursors)? CIT'Y(STANDARD)1SACUTB12005 22628.1 Page 4 of 15 FORM"T' 177 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Issues: Impact Incorporated Impact Impact d)Expose sensitive receptors to substantial pollutant concentrations? e)Create objectionable odors affecting a substantial number of people? BIOLOGICAL RFSOURCES. Would the project: a)Have a substantial adverse effect, a/ either duectly or through habitat modifications,on any species identified as a candidate,sensitive, or special status species in local or regional plans,policies,or regulations,or by the California Department of Fish and Game or U.S.Fish and Wildlife Service? b)Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies,regulations or by the Califomia Depaztment of Fish and Game or U.S.Fish and Wildlife Service? c)Have a substantial adverse effect on v federaily protected wetlands as defined by Section 404 of the Clean Water Act('vncluding,bu1 not limited to,marsh,vernal pool, coastal,etc.)through direct removal, filling,hydrological interruption,or other means? d)Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors,or impede the use of native wildlife nursery sites? e)Conflict with any local policies or ordinances protecting biological resources,such as a tree preservation policy or ordinance? C1TY(STANDARD).SACUTB 2005 22628.1 Page 5 of 15 FORM"J" 178 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Issues: Impact Incorporated Impact Impact Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan,or other approved local, regional,or state habitat conservation plan? CiJLTURAI_RESOURCFS. Would the project a)Cause a substantial adverse change d in the significance of a historicat resource as defined in§ 15064.5? b)Cause a substantial adverse change in the significance of an archaeological resource pursuant to 15064.5? c)Directly or indirectly destroy a unique paleon[ological resource or site or unique geologic feature? d) Distarb any human remains, including those interred outside of formal cemeteries7 GEOLOGY AND SOILS. Would the praject: a)Expose people or structures to d potential substantial adverse effects, including the risk of loss,injury or death involving: i)Rupture of a known earthquake fault,as delineated on the most recent Alquist-Priolo Earthyuake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Stcong seismic ground shaking? iii) Seismic-related ground failure, including liquefaction? iv) Iandslides? b) Result in substantial soil erosion or the loss of topsoil? C1TY(STANDARD)`SACUTB 2005 22628.1 Page 6 of 15 FORM"J" 179 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Issues: Impact Incorporated Impact Impact c)Be located on a geologic unit or suil that is unstable,or that would become unstable as a result of the project,and potentially result in on- or off-site landslide,lateral spreading,subsidence,liquefaction or collapse? d)Be located on expansive soil,as defined in Table 18 1 B of the Uniform Building Code(1994), creating substantial risks to life or property? e)Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers aze not available for the disposal of waste water? HAZARDS AND HA7.,ARDOUS MATERIALS. Would the project: a)Create a signi icant hazard to the public or the environment through the roudne transport,use,or disposal of hazazdous materials? b)Create a significant hazard to the public or the environment through reasonably foreseeable upsetand accident conditions involving the release of hazazdous materials into the environment? c)Emit hazardous emissions or handle hazardous or acutely hazardous materials,substances,or waste within one-quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiied pursuant to Government Code section 65962.5 and,as a result,would it create a significant hazazd to the public or the environment? CTCY(STANDARD)\SAGUTB 2005 22628.1 Page 7 of 15 FORM"J" 180 Less Than 5ignificant Potentially With Less Than Significant Mitigation Significant No Issues: Impact Incorporated Impact Impact e)For a project located within an airport land use plan or,where such a plan has not been adopted,within two miles of a public airport or public use airport,would the project result in a safety hazard for people residing or working in the project area? For a project within the vicinity of a private airstrip,would the project result in a safety hazard for people residing or working in the project azea? g)Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h)Expose people or structures to a significant risk of loss,injury or death involving wildland fires, including where wildlands aze adjacenEto urbanized areas or where residences are intermixed with wildlands? HYDROLOGY AND WATER QUALITY. Would d e,project: a)Violate any water quality standards or waste discharge tequirements? b)Substaniially deplete gxoundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the 1oca1 groundwater table level(e.g., the production rate of pr existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c Substantially alter the existing drainage pattem of the site or area, including through the alteration of the course of a stream or river,in a manner which would result in substantial erosion or siltation on-or off-site? C[i'Y(STANDARD).SACIITB 2005 22628.1 Page 8 of 15 FORM"J" 181 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Issues: Impact Incoiporated Impact Impact d)Substantially alter the existing drainage pattern of the site or area> including through the alteration of the course of a stream or river,or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on-or off-site? e)Create or contribute runoff water which would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff? fl Otherwise substantially degade water quality? g) Place housing within a 100-year flood hazard azea as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard del'vneation map? h) Place witliin a 100-year flood hazard azea structures which would impede or redirect flood flows? i)Expose people or structures to a significantrisk of loss,injury or death involving flooding,including flooding as a result of the failure of a levee or dam? j)Expose people or structures to inundation by seiche,GSl1I1Sn11,or mudflow? LAND USE AND PLANNING. Would the project: a)Physically divide an established community? CPi'Y(STANDARD)ISACUTB 2005 22628.1 Page 9 of 15 FORM"J" 182 Less Than Significant Potendally With Less Than Significant Mitigation Significant No Issues: Impact Incorporated Impact Impact b) Conflict with any applicable land use plan,policy,or regulation of an agency with jurisdiction over the project(including,but not limited to the general plan,specific plan, local coastal program,or zoning ordinance)adopted for the purpose of avoiding or mitigating an environmental effect? c)Conflict with any applicable habitat conservation plan or natural community conservation plan? MINERAL RF.SOURCES. Would the project: a)Result in the loss of availability of a Q/ known mineral resource that would be of value to the region and the residents of the state? b) Result in the loss of availability of a locally-important mineral resource recovery site delineated on a local general plan,specific plan or other land use plan? NOISE. Would the project result in: a)Exposure of persons to or generation of noise levels in excess of standazds established in the local general plan or noise ordinance,or applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundbome vibration or groundbome noise levels? c)A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d)A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? C[CY(STANDARD)1SACIJTB 2005 22628.1 Page 10 of 15 FORM"J" 183 Less Than Significant Potentially With Less Than Signi cant Mitigation Significant No Issues: Impact Incorporated Impact Impact e)For a project located within an airport land use plan or,where such a plan has not been adopted,within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? For a project within the vicinity of a private airstrip,would the project expose people residing or working in the project area to excessive noise levels? POPiJL.ATION AND HOUSING. Would the project: a)Induce substantial population growth in an area,either directly for example,by proposing new homes and businesses)or indirectly for example,through extension of road or other infrastructure)? b)Displace substantial numbers of existing housing,necessitating the construction of replacement housing elsewhere? c)Displace substantial numbers of people,necessitating the construction of replacement housing elsewhere? PUBLIC SERVICES. Would the project: a)Result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities,need for new or physically altered governmenial facilities,the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios,response times or other performance objecdves for any of the public services: Fire protection? C1TY(STANDARD)SACUTB12005 22628.1 Page 11 of 15 FORM"I" 184 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Issues: Impact Incorporated Impact Impact Police protection? Schools? P ks a o Other public facilities? RECREATION. Would the project: a)Increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which have an adverse physical effect on the environment? TRANSPORTATION/TIZAFI C. Would the project: a)Cause an increase in traffic which is 0/ substantial in relation to the existing traff'ic load and capacity of the street system(i.e.,result in a substantial increase in either the number of vehicle trips,the volume to capacity ratio on roads,or congestion at intersections)? b) Exceed,either individually or cumulatively,a level of service standard established by the county congestion management agency for designated roads or higl ways? c)Result in a change in air traffic pattems,including either an increase in traffic levels or a change in location that results in substantial safety risks? d) Substantially increase hazards due to a design feature(e.g.,sharp curves or dangerous intersecdons) or incompatible uses(e.g.,farm equipment)? C1TY(STANDARD)SACUT6 2005 22628.1 Page 12 of 15 FORM"J" 185 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Issues: Impact Incorporated Impact Impact e)Result in inadequate emergency access? fl Result in inadequate pazking capacity? g)Conflict with adopted policies, plans,or programs supporting alternative transportation(e.g.,bus turnouts,bicycle racks)? UTII.TTIES AND SERVICE SYSTEMS. Would the project: a)Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? b)Require or result in the construction of new water or wastewater treatment facili[ies or expansion of existing facilities,the canstruction of which could cause signif'icant environmental effects? c)Require or result in the construction of new storm water drainage facilities or expansion of existing facilities,the construction of which could cause signif'icant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entiflements needed? In making this determination,the City shall consider whether the project is subject to the water supply assessment requirements of Water Code Section 10910,et'sea.(SB 6l0),and the requirements of Government Code 5ection 664737 SB 221). CITY(STANDARD SAC\1TB 2005 22628.1 Page 13 of 15 FORM"J" 186 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Issues: Impact Incorporated Impact Impact e)Resuit in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the projecYs projected demand in addition to the provider's existing commitments? fl Be served by a landf Il with sufficient permitted capacity to accommodate the projecYs solid waste disposal needs? g)Comply with federal,state, and local statutes and regulations related to solid waste? MANDATORY FTNDINGS OF SIGNIFICANCE a)Does the project have the potential to substantially degrade the quality of the environment,substantially reduce the habitat of a fish or wildlife species;cause a fish or wildlife population to drop below self-sustaining levels;threaten to eliminate a plant or animal community;substantially reduce the number or restrict the range of an endangered,rare or threatened species;or eliminate impottant examples of the major periods of California history or prehistory? b)Does the project have the potential to achieve short-term environmental goals to the disadvantage of long- term environmental goals? c)Does the project have impacts that are individually limited,but cumulatively considerable? Cumulatively considerable"means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects,the effects of other current projects,and the effects of probable future projects.) C[TY(STANDARD)SACVTB12005122628.1 Page 14 of 15 FORM"J" 187 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Issues: Impact Incorporated Lmpact Impact d)Does the project have environmental effects which will cause substantial adverse effects on human beings, either d'uectly or ind'uectly? Ci'Tl'(STANDARD)SACIlTB 2005 22628.1 Page 15 of 15 FORM"J" 188 EXHIBIT "A" DESCRIPTION OF FACILITIES The public facilities (the "Facilities") described below are proposed to be financed by City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District') and include a pedestrian bridge, traffic signals, landscaping, street improvements, water improvements, sewer improvements, storm drain improvements, utility improvements, public art improvements, school facility improvements, park improvements, and park site land acquisition, together with all appurtenances and appurtenant work, such as related clearing and grubbing, grading, and any removal or temporary signage or markings related thereto. The cost of the Facilities shall include incidental expenses, including costs associated with forming the District, issuance of bonds, determination of the amount of the Special Tax, collection of the Special Tax, payment of the Special Tax, costs incurred in order to carry out the authorized purposes of the District, and the costs of engineering, inspecting, coordinating, completing, planning and, designing the Facilities, including the costs of environmental evaluations. The Facilities include, but shall not be limited to, the facilities listed below, and other facilities of the same type or types may be substituted in the place of one or more of the specific facilities listed below. Any of the Facilities to be constructed shall be constructed, whether or not acquired in their completed states, pursuant to plans and specifications approved by the City of Palm Desert(or the Coachella Valley Water District, or Palm Springs Unified School District, as applicable) and the officials thereof, including the City Engineer. .The final nature and location of the Facilities will be determined upon the preparation of final plans and specifications for such Facilities. The Facilities may include facilities financed pursuant to public agency development impact fees. I.Cook Street Pedestrian Brid e (including, but not limited to bridge, ADA access raxnps, elevator, retaining walls, hand railing, pedestrian lighting, revised sidewalks and minor grading) II.• Street Itnprovements (including,but not limited to, street widening, excavation, signing and striping, access ramps, grading, median and parkway landscaping, curbs and gutters, sidewalks, street lights, dry utility infrastructure,bus stops, fringe toed lizard fee and.City fees) A. Frank Sinatra Drive: from West of Cook Street to College Drive B. Cook Street: from Frank Sinatra Drive to Gerald Ford Drive C. Portola Avenue: from College Drive to Gerald Ford Drive D. Southern half of Gerald Ford Drive: from Portola Avenue to Cook Street E. University Park Drive: from College Drive to Cook Street F. Technology Drive: from College Drive to Gerald Ford Drive G. Pacific Avenue: from College Drive to Gerald Ford Drive H. College Drive: from Portola Avenue to Frank Sinatra Drive A-1 P6401-1032/817418.9 189 III. Water Improvements A. University Park llrive: trom West intersection College Drive to East intersection College Drive B. Technology Drive: from College Drive to Gerald Ford Drive C. Pacific Avenue: from College Drive to Gerald Ford Drive D. College Drive: from Portola Avenue to Frank Sinatra Drive E. Well Sites (including land acquisition and improvements) to be located at four sites to be determined by the Coachella Valley Water District concurrently with land plan, final tentative map(s), or similar document(s) (as appropriate) to be approved by the City's Planning Coinmission and City Council. The tentatively approved locations of the well sites are as follows: 1. Adjacent to Gerald Ford Drive between Pacific Avenue and Technology Drive; 2. Northeast corner of College Drive and Portola Avenue; 3. Adjacent to University Park Drive close to the westem intersection with College Drive; and 4. Adjacent to College Drive South of University Park Drive IV. Traffic Si i als A. The intersection of Cook Street/Gerald Ford(modified) B. The intersection of Cook Street/IJniversity Park Drive (modified) C. The intersection of Frank Sinatra Drive/College Drive D. The intersection of Portola Avenue/College Drive E. Signals to be located on the south side of the intersection of Gerald Ford Drive/Pacific Avenue F.Signals to be located on the south side of the intersection of Gerald Ford Drive/Technology Drive G. Signals to be located on the south side of the intersection of Gerald Ford Drive/Portola Avenue (cost participation only) V. Sewer Improvements A. Technology Drive: from College Drive to Gerald Ford Drive B. Pacific Avenue: from College Drive to Gerald Ford Drive C. College Drive: from the West intersection University Park Drive to Technology Drive to North of Frank Sinatra Drive D. University Park Drive: from West intersection College Drive to Southwest of West intersection of College Drive and West of the East intersection College Drive to the East intersection College Drive VI. Storm Drain Improvements A. Pacific Avenue: Catch basins and interim-condition retention basins on the east and west sides of Pacific, adjacent to Gerald Ford Drive A-2 P6401-1032/817418.9 190 B. College Drive: Catch basins and interim-condition retention basin on the southwest corner of College Drive and University Park Drive (west intersection); catch basins on the east and west sides of the intersection with Technology Drive and a permanent retention basin along Technology Drive; and a catch basin and interim-condition retention basin on the east side of College Drive south of the east intersection with University Park Drive C. University Park Drive: Catch basins on the east and west sides of University Park Drive at the west intersection with College Drive and an interim-condition retention basin in the southwestern corner of the.intersection; catch basins on the north and south sides of University Park Drive and an interim-condition retention basin in the northwest quadrant of the east intersection of College Drive and University Park Drive; and, s indicated above under VI.B., a catch basin and interim-condition retention basin on the south side of University Park Drive, west of Cook Street D. Technology Drive: Catch basins on the east and west sides of Technology.Drive and an interim-condition retention basin west of Technology Drive and south of Gerald Ford Drive E. Gerald Ford Drive: Catch basin and interim-condition retention basin between Pacific and Technology Drive on the south side of Gerald Ford Drive; as indicated above under VI.A., catch basin and interim-condition retention basin on the south side of Gerald Ford Drive west of Pacific Avenue; and, as indicated above under VI.D., catch basin and interim-condition retention basin west of Technology Drive F.Cook Street: As indicated above under VI.B., catch basin and interim-condition retention basin south of University Park Drive, west side of Cook Street VII. Utilities Improvements A. Frank Sinatra Drive: from West of Cook Street to College Drive B. University Pazk Drive: from West intersection College Drive to Cook Street C. Technology Drive: from College Drive to Gerald Ford Drive D. Pacific Avenue: from College Drive to Gerald Ford Drive E. College Drive: from Portola Avenue to Frarilc Sinatra Drive F.Southern half of Gerald Ford Drive: from Technology Drive to Pacific Avenue VIII. Park Improvements and Park Site Land Acquisition(including, but not limited to, site development, lighting and landscaping improvements, restroom facilities, age-appropriate tot lots, sand volleyball and basketball facilities, picnic pavilions, greenspace (including without limitation greenspace large enough for sports activities), shade struciures, walking paths, water spray features, dog park improvements, and parking improvernents) A. Park A (approximately 2 acres)—Generally surrounded by Portola Avenue, College Drive, Pacific Avenue and Gerald Ford Drive B. Park B (approximately 4.5 acres)—Generally surrounded by Gerald Ford Drive, Pacific Avenue, College Drive and to the west of the intersection of College Drive and University Park Drive A-3 P6401-l 032l817418.9 191 C. Park C (approximately 2.3 acres)— Located in the southwest corner of the west intersection of University Park Drive and College Drive D. Park D (approximately 2.8 acres)—Generally surrounded by College Drive and University Park Drive E. Park E (approximately 0.7 acres)— Located in the southwest corner of Pacific Avenue and Gerald Ford Drive F.Park F(approximately 0.6 acres)— Located in the southeast corner of Pacific Avenue and Gerald Ford Drive IX. Landscaping(includes all planting, imgation, trees, and necessary hardscape/rocking) A. All street median areas as well as parkways areas (listed under Section II) between the back of curb and gutter and street right of way(excluding the sidewalk) will be landscaped. 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LL I loo c la la I 4 n N W o c 8 o.00so. . aQ u Q Z oYHSYs - r i n g go oing z n e e • Z /\ e'r e 3..e ain m rc.. . m e U Y d - a oo^ogg 3=eg=` O WQ zn o ma S x.` ggS$ Y S Sa w o Q7 vl n.o n3 i5 SY"' . . .¢`u.oho .hD a o N W O i n.55 a, o zzzz'b b_ c z a ry S Egfio`€£€SoEc- °5 o N ~ Q U Ea`8 8"d5 •o `'dogcaiofio opNN amuc w an`dn rcuio 03 COCOS NN u o5¢° O1 i p w w O Li Z h J > Q n v U N o oo'000ac z o ss$aos""saaa000 Q o i i i o i i i i n+onnnn0RaRRaq ' ii„ iiiiii O O n n$3 v'ieiouunmme Qn rmminnu onmm Q Z 0 aananaanan Q 2 r2 W O y 3Q-• COOK ST.ST. hQ TECHNOLOGY O COLIEGE O O,p R Om O o- QP y y\ iOJ U a AM 3 V o g _- X3 d02113W I I Vd Y x f j ''o e O F6 O 3nv violaod 193 ENVIRONMENTAL CHECKLIST DISCUSSION CFD 2005-1 UNIVERSITY PARK GENERAL COMMENTS The public improvements identified in the project description attached hereto as Exhibit A, along with the future commercial and residential projects that will be served by those improvements, were substantially identified and discussed in the General Plan and Environmental Impact Report (SCH #2003051103). Many of the mitigation measures identified in the General Plan Final EIR, which is hereby incorporated by reference in its entirety, will be applicable to the Project and future associated developments. Attached are excerpts from the EIR identifying all mitigation measures and mitigation monitoring/reporting programs adopted with the General Plan. 1. AESTHETICS The project site elevation falls southwest to northeast by approximately 80 feet. The combination of grading design, landscaping and low profile architecture for future development will preserve views of the regions scenic mountains from surrounding properties. The Project will involve installation of street lighting and incidental lighting associated with future residential and commercial development. MITIGATION Mitigation Measure AES-1. The lighting funded and constructed by this Project shall comply with the City's Municipal Code Chapter 24.16 regulations regarding lighting levels and horizontal and vertical light trespass. 2. AGRICULTURAL RESOURCES The Project site does not contain any agricultural resources, therefore significant impacts will occur. 3. AIR QUALITY The undeveloped site is currently covered by large sand dunes which, in conjunction with other such landforms located in the general area, are the primary source of blow sand contributing to periodic violations of PM10 standards in the area. Construction activities associated with installation of the improvements to be funded and constructed through the Project have the potential to increase the amount of blow sand and PM10. The strict compliance with the City's Fugitive Dust Ordinance Chapter 24.12 194 INITIAL STUDY ENVIRONMENTAL CHECKLIST DISCUSSION CFD 2005-1 UNIVERSITY PARK and the 2002 Coacheila Valley State Implementation Plan prepared by AQMD during construction and the ultimate stabilization of the sand dunes resulting from future development will reduce potential impacts on the site and areas downwind. Further, upon completion of the future developments planned for the area, increases in landscaped and otherwise covered ground will reduce the amount of blow sand generated by winds over the site. The potential impact of construction of the improvements contemplated by the Project can be mitigated to a less than significant level by adherence to the following mitigation. MITIGATION Mitigation Measure AQ-1. During stabilization of the sand dunes and construction activity, all contractors shall comply with the City's Fugitive Dust Control Ordinance, set forth in Chapter 24.12 of the Municipal Code and the 2002 Coachella State Implementation Plan prepared by the Air Quality Management District. 4. BIOLOGICAL RESOURCES The project site is within the development fee area designated by the Coachella Valley Fringe-Toed Lizard Habitat Conservation Plan and HCP designed to protect critical sand dune habitat for the Fringe-Toed Lizard and associated dune flora and fauna. The General Plan EIR acknowledges that, in 1985, ten Coachella Valley cities, including the City of Palm Desert, adopted the Coachella Valley Fringe-toed Lizard Habitat Conservation Plan (HCP), which established a preserve for the species of approximately 18,038 acres. (General Plan EIR at p. III, 105-106.) Further, the biological study completed for the General Plan concludes that "[s]and sheets, dunes and hummocks within the boundaries of the Coachella Valley fringe-toed lizard Habitat Conservation Plan do not need surveys to detect the presence of the fringe-toed lizard." And that payment of the mitigation fee of $600/acre will satisfy requirements of the federal Habitat Conservation Plan." (Palm Desert General Plan Update Biological Report, Lawrence F. Lapre, PhD, June 29, 2001, at p. 23.) MITIGATION Mitigation Measure BIO-1. The $600.00 per acre mitigation fee required by the Coachella Valley Fringe-toed Lizard Habitat Conservation Plan shall be paid before lands to which the fee applies are disturbed. 5. CULTURAL RESOURCES The project site is located on a large, dry sand dune ridge, and the site contains no evidence of cultural resources. Based on the Palm Desert 2 195 INITIAL STUDY ENVIRONMENTAL CHECKLIST DISCUSSION CFD 2005-1 UNIVERSiTY PARK General Plan EIR cultural resources survey, the area is not within areas designated as "high sensitivity for prehistoric or archaeological resources" or "reiativefy high sensitivity for historic structures or archaeological resources from pre-1940 era." (See General Plan Draft EIR, Exhibit III- 14.) Therefore, no significant impacts in this regard are expected. 6. GEOLOGY AND SOILS The project site is four miles from the San Andreas fault, therefore, like all other property in the region, it is subject to the potential for ground shaking. The General Plan EIR identifies the site as low risk for liquefaction. (See General Plan EIR, Exhibit III-10.) Compliance with mitigation measures set for in the General Plan will mitigate any impacts to less than significant levels. MITIGATION Mitigation Measure GEO-1. The proposed Project and future development will comply with the City's grading and building codes and implement the following mitigation measures listed in the General Plan EIR as applicable to the Project or components thereof: A. The City shall establish and maintain an information database containing maps and other information which describe seismic and other geotechnical hazards occurring within the City boundaries, sphere-of-influence and planning area. B. Proper structural engineering, which takes into account the forces that will be applied to structures by anticipated ground motions, shall provide mitigation for ground shaking hazards. Seismic design shall be in accordance with the most recently adopted editions of the Uniform Building Code and/or International Building Code, and the seismic design parameters of the Structural Engineers' Association of California. C. Proposals for development on wind or stream-deposited sediment on the valley floor shall include site-specific subsurface geotechnical investigations that address settlement, liquefaction, and collapsible soils. These hazards can generally be mitigated by proper excavation, compaction and foundation design. D. The City shall continue to require expansive soils testing as part of its grading and building codes, and shall assure the implementation of mitigation measures which minimize these hazards, such as the use of reinforcing steel in foundations, drainage control devices, overexcavation and backfilling with non-expansive soils. 3 196 INITIAL STUDY ENVIRONMENTAL CHECKLIST DISCUSSION CFD 2005-1 UNIVERSITY PARK E. The City shall continue to support and encourage locai and regional groundwater conservation measures in an effort to mitigate . potential subsidence resulting from groundwater overdraft (see also Water Resources discussion in Section III-F). F. All grading permit requests shall include a PM10 Management Plan in conformance with the latest approved Coachella Valley PM10 requirements in place at the time constru tion occurs. Blowing dust and sand during grading operations shall be mitigated by adequate watering of soils prior to and during grading, and limiting the area of dry, exposed soils during grading (see also Air Quality discussion in Section III-H). G. Where development is proposed adjacent to or in close proximity to steep slopes, site-specifc geotechnical studies shall be conducted to evaluate the potential for rock falls and/or slope failure, and to establish mitigation measures which minimize these hazards. H-1. All development proposed within Alquist-Priolo Earthquake Zones shall comply with State requirements for site-specific study, including trenching to locate fault traces, and to submit this analysis prior to any development approval for the property. H-2. During site grading, all existing vegetation and debris shall be removed from areas that are to receive compacted fill. Any trees to be removed shall have a minimum of 95% of the root systems extracted. Man-made objects shall be overexcavated and exported from the site. Removal of unsuitable materials may require excavation to depths ranging from 2 to 4 feet or more below the existing site grade. I.All fill soil, whether on site or imported, shall be approved by the individual project soils engineer prior to placement as compaction fill. All fill soil shall be free from vegetation, organic material, cobbles and boulders greater than 6 inches in diameter, and other debris. Approved soil shall be placed in horizontal lifts of appropriate thickness as prescribed by the soils engineer and watered or aerated as necessary to obtain near-optimum moisture content. J.Fill materials shall be completely and uniformly compacted to not less than 90% of the laboratory maximum density as determined by ASTM test method D-1557-78. The project soils engineer shall observe the placement of fill and take sufficient tests to verify the moisture content, uniformity, and degree of compaction obtained. In-place soil density should be determined by the sand-cone 4 197 INITIAL STUDY ENVIRONMENTAL CHECKLIST DtSCUSSION CFD 2005-1 UNIVERSITY PARK method, in accordance with ASTM Test Method D-1556-64 (74), or equivalent test method acceptable to the City Building and Safety . . Department. K. Finish cut slopes generally shall not be inclined steeper than 2:1 horizontal to vertical). Attempts to excavate near-vertical temporary cuts for retaining walls or utility installations in excess of 5 feet may result in gross failure of the cut and may possibly damage equipment and injure workers. All cut slopes must be inspected during grading to provide additional recommendations for safe construction. L.Finish fill slopes shall not be inclined steeper than 2:1 (horizontal to vertical). Fill slope surfaces shall be compacted to 90% of the laboratory maximum density by either over-filling and cutting back to expose a compacted core or by approved mechanical methods. M. Foundation systems that utilize continuous and spread footings are recommended for the support of one and two-story structures. Foundations for higher structures must be evaluated based on structure design and on-site soif conditions. N. Positive site drainage shall be established during finish grading. Finish lot grading shall include a minimum positive gradient of 2% away from structures for a minimum distance of three (3) feet and a minimum gradient of 1°!a to the street or other approved drainage course. O. An adequate subdrain system shall be constructed behind and at the base of all retaining walls to allow for adequate drainage and to prevent excessive hydrostatic pressure. P. Utility trench excavations in slope areas or within the zone of influence of structures should be properly backfilled in accordance with the following recommendations: i. Pipes shall be bedded with a minimum of 6 inches of pea gravel or approved granular soil. Similar material shall be used to provide a cover of at least 1 foot over the pipe. This backfill shall then be uniformly compacted by mechanical means or jetted to a firm and unyielding condition. ii.Remaining backfill may be fine-grained soil. It shall be placed in lifts not exceeding 6 inches in thickness or as determined appropriate, watered or aerated to near optimum 5 198 INITIAL STUDY ENVIRONMENTAL CHECKLIST DISCUSSION CFD 2005-1 UNIVERSITY PARK moisture content, and mechanically compacted to a minimum of 90% of the laboratory maximum density. Q. Pipes in trenches within 5 feet of the top of slopes or on the face of slopes shall be bedded and backfilled with pea gravel or approved granular soils as described above. The remainder of the trench backfill comprise typical on-site fill soil mechanically compacted as described in the previous paragraph. 8.HAZARDS AND HAZARDOUS MATERIALS The Project site is vacant land, and there is no evidence to suggest that hazardous materials are or have been present on the site. Further, the types of uses contemplated for the site, and specifically the improvements to be undertaken by the Project, do not have the potential to have any significant impacts in this regard. 9. HYDROLOGY AND WATER QUALITY The Project will result in, and enable, creation of impervious surfaces and which would reduce the amount of percolation and change the site's drainage conditions. The Project envisions the construction of a number of drainage improvements so that the drainage needs of future development of the site are met. The Project contemplates construction of drainage facilities and retention basins that will accommodate a 100-year storm. Because the Project involves these drainage improvements that will accommodate future service needs, no significant impact will result, and there is no need for further mitigation. 10. LAND USE PLANNING The Project's improvements, as well as the future residential/commercial uses which they will serve, are consistent with the goals and policies of the General Plan, and will assist in the General Plan's implementation. 11. MINERAL RESOURCES There are no known mineral resources in the vicinity of the Project, therefore no significant impact is expected to occur. 12. NOISE The improvements contemplated by the Project are generally not noise producing, and therefore, no significant impacts are expected in that respect. Construction activities associated with the improvements will generate noise, but due to the general lack of sensitive receptors in the 6 199 INITIAL STUDY ENVIRONMENTAL CHECKLIST DISCUSSION CFD 2005-1 UNIVERSITY PARK area, and the fact that construction noise wilf be temporary, the impacts will not be significant. 13. POPULATION AND HOUSING The Project improvements are designed to serve a mix of residential and commercial uses which will help balance employment and housing demands in the University Park area. Further, the improvements will enable growth and development consistent with the General Plan for the area. Therefore, the growth accommodated by the improvements has already been accounted for in regional models that rely on the City's General Plan, and no impacts beyond those already considered by the General Plan EIR will occur. 14. PUBLIC SERVICES The future development served by the project will incrementally increase demand on public services, however many of the improvements contemplated by the Project are being undertaken to ensure that adequate service levels will exist for the development. Further, the current system of mitigation fees, including fire facility, school, park, child care, transportation, drainage, etc., in addition to general fund and Redevelopment Agency revenues, are adequate to maintain the current level of public services without significant environmental impacts. 15. RECREATION Future residential development that will be served by the Project improvements will increase public recreation demand. However, the improvements include a number of recreational facilities that will serve these future residents as well as customers and employees at the commercial and other non-residential land uses. MITIGATION Mitigation Measure REC-1. Construction of four neighborhood parks totaling approximately 11.6 acres, as contemplated in the General Plan goal of five acres per 1,000 projected population, will address potential impacts of the future development enabled through the Project I mprovements. 16. TRANSPORTATION/TRAFFIC Commercial and residential development facilitated by the project will generate significant new vehicle trips onto the regional system, however many of the improvements contemplated by the Project are being 7 200 INITIAL STUDY ENVIRONMENTAL CHECKLIST DISCUSSION CFD 2005-1 UNIVERSITY PARK undertaken to ensure that adequate service levels will exist for the future development. The Project includes the completion of all necessary long-term General Plan Circulation Element street improvements to insure that traffic is distributed in a safe and efficient manner with Level of Service D or better as specified in the General Plan EIR. Further, the future development has the potential to impact regional transportation systems. However, those impacts will be mitigated to less than significant impacts through payment of the Transportafion Uniform Mitigation Fee TUMF). During constn.ction of the improvements contemplated by the Project, there is the potential for short term impacts to transportation and traffic due to street closure needs, including the potential for detours. This short term impact will be mitigated to less than significance through preparation of street closure and traffic plans which shall be reviewed and approved by the City's Public Works Department prior to commencement of any activities within the a public right-of-way. MITIGATION Mitigation Measure TRANS-1. Future development shall pay Transportation Uniform Mitigation Fee (TUMF) as required by that program to mitigate project impacts throughout the region. Mitigation Measure TRANS-2. Prior to commencement of any improvement project within a public right-of-way, a traffic control and safety plan shall be prepared and submitted to the City's Public Works Department fo review and approval. The traffic control and safety plan shall strive to enable efficient circulation in the vicinity of the Project to the extent possible. 17. UTILITIES The future development served by the project will incrementally increase demand on some utility services, however many of the improvements contemplated by the Project are being undertaken to ensure that adequate service levels will exist for the development. Further, the applicants for future development will pay the necessary connection and service fees which will offset demand impacts. 18. MANDATORY FINDINGS OF SIGNIFICANCE A. The improvement Project has the potential to degrade habitat for the Fringe-toed lizard, however, through mitigation fees that .fund and establishment and maintenance of a permanent preserve through and approved Habitat Conservation Plan, the does not rise 8 201 A INITIAL STUDY ENVIRONMENTAL CHECKL{ST DISCUSSI N CFD 2005-1 UNIVERSITY PARK to the fevel of significance. Further, the improvements associated with the Project do not have the potential to substantially degrade the environment, substantially reduce the habitat of a fish or wildfife species or cause such species to drop below self-sustaining levels. For the reasons stated above there is no evidence in support of finding this significance threshold met for this Project. B. The Project will assist in implementation of the City's long-term General Plan for the area, therefore, the Project does not achieve short-term goals to the detriment of long term goals. C. The improvements proposed by the Project, when considered in conjunction with the future planned development, wi{I not have a cumulatively significant effect.The Project and future developments are consistent with the General Plan which contemplates this growth. Therefore, the impacts of the Project have already been contemplated by the City's General Plan, as well as the regional plans which rely on the projections of the General Plan, such as transportation plans and air quality plans. Cumulative impacts of this Project together with other projects, will not be cumulatively significant. 9 202 r Land IIse Compatibility Mitigation Measures i TNlCity of Palm Desert Draft General Plan EIR Section I I-Existing Conditions,Impacts and Mitigation Measures Summary of Impacts Impacts to the City of Palm Desert and adjacent land uses associated with the adoption and implementation of the proposed General Plan are not anticipated to be significant. The proposed land i use plan incorporates a mix of land uses thoughtfully developed to be compatible with one another and with the surrounding environment. Spatial organization of the lands within the General Plan study area j involved logical transition of adjoining residential densities from areas of lower to higher densities. The Iproposedlanduseplanrecognizestheneedtoinsulatesensitivelanduses (residences, schools, etc.) from areas of transportation noise by establishing a buffer of less se sitive uses, such as the business iparkbufferbetweenresidentialareasandtheInterstate-10/Llnion Pacific comdor. High-density residential areas occur in close proximity to commercial developments and major roads for convenient transportation access. The University Park planning area provides complimentary land uses located close to commercial and business park development that can provide convenient shopping and employment opportunities, but buffer local residents from noise and traffic associated with nearby arterial roads and the Union Pacific Railroad. The Plan is also responsive to the need to preserve the Santa Rosa Mountains and other conservation areas as undeveloped open spaces. I In general, the proposed General Plan will increase the number of housing units in the City, by providing additional lands for high and medium residential density development. The housing increase is expected to be primarily generated in the University Park planning area. The proposed General Plan I also demonstrates increases in industrial, open space, and public/quasi-public acreages and shows a reduction in commercial acreages. I T'he proposed General Plan constitutes a considerable increase in the number of housing structures in the planning area. Additional homes will result from conversion of Open Space-Rural (1 du/40 acre),under the existing General Plan, to Desert Estates (1 du/10 acre) in the proposed General Plan. Other residential increases will result from proposed lands for medium to high density development,primarily j `; located north of the I-10 freeway. The proposed General Plan also results in the decrease of commercial, industrial and open space acreages. However,it will slightly increase public/quasi-public acreages. 3. Mitigation Measures i i No significant land use incompatibilities are anticipated to result from the adoption and implementation i of the proposed Palm Desert General Plan, and mitigation measures are not necessary to address this iareaofconcern. The General Plan incorporates a wide range of policies and programs, implementation of which will address land use compatibility issues as they arise. However, in order to assure that potential changes in land use are adequately assessed, the following mitigation measures shall be implemented. A• Individual proposed projects, especially those involving a mix of residential and other uses, as well as those located nearby or adjacent to sensitive lands or uses, shall be fully evaluated during I the project review process to assure that all land use compatibility issues are addressed and i mitigated. I? i III-17 203 Land IIse Compatibility—Traffic/Circulation TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures B. The City shall require a noise impact assessment and mitigation plan which minimizes impacts to outdoor living space and assures a maximum interior noise level of 45 CNEL, from all future residential development occurring on lands within an existing 65 dBA or higher noise contour. Mitigation Monitoring/Reporting Program i A. The City shall identify potential adverse of unacceptable noise exposures, evaluate and assure the effectiveness of proposed mitigation programs, and assure construction is in accordance with approved noise mitigation plans. Said plan shall be approved by the Community Development Department as part of its review, and the effectiveness of the proposed mitigation program shall be demonstrated as part of the Building Department's inspection process. Results shall be recorded and maintained with building inspection records. Responsible Parties: City Community Development and Building Departments B. Traffic/Circulation Introduction In conjunction with the preparation of the Draft General Plan, a region-based, City/study area-focused traffic study was also prepared? A wide variety of data were assembled to measure existing traffic conditions on the various roadways studied. A focused version of the CVATS Traffic Model was used to analyse existing conditions and to project future conditions for the Prefened Alternative General Plan, as well as for the current General Plan and two other alternative plans.1 The following discussion provides some essential background information to facilitate a better understanding of the analysis,which follows. Levels of 5ervice The capacity of a segment of roadway or an intersection is typically characterized as "Level- of-IService". As gauged for mid-block travel, Level-of-Service (LOS) is a qualitative measure describing the character and efficiency of the flow of traffic. For intersections, the LOS is defined quantitatively, as the number of seconds the vehicle is delayed in passing through the intersection. LOS includes a range Iofalphabeticalconnotations "A" through "F", used to characterize roadway operating conditions. LOS A represents the besVfree-flow conditions and LOS F indicates the worsdsystem failure. Intersections represent the most constrained portion of the roadway network. The Highway Capacity I Manual expresses the Level of Service at an intersection in terms of delay or waiting time to get through the various intersection approaches. For signalized intersections, average total delay per vehicle is used to deternune the LOS. Intersection LOS is defined quantitatively in Table III-7 below. A more detailed discussion of LOS values can be found in the General Plan Traffic Study in the EIR Technical Appendices. Mid-block Levels of Service are represented as volume to capacity ratios, or vehicle demand divided by roadway capacity. In general terms, as the ratio approaches 1.00 or maximum capacity, the roadway approaches LOS F. However, it is important to keep in mind that for mid-block, the LOS is meant to Z Palm Desert General Plan Update Tr c Study.Prepared by Urban Crossroads,Inc.September 5,2003. III-18 204 Land IIse Compatibility—Traffic/Circulation IN/CityofPalmDesertMitigationMeasures Draft General Plan EIR Section III—Existing Canditions,Impacts and Mitigation Measures All-Weather Access Major drainages that affect roadway access both within the City and the planning area include the Whitewater River, Palm Valley Stormwater Channel, Deep Canyon Stormwater Channel, San Pascual Channel, Mid-Valley Stormwater Channel, Thousand Palms Flood Control Project and Thousand Palms Canyon Wash,cove neighborhoods and in areas north of Highway 111. Whitewater River: The Whitewater River is the principal drainage affecting all-weather access in the City, with cunently all-weather crossings existing at only Monterey Avenue. Crossings of the Whitewater River at Portola Avenue and Cook Street are cunrently improved to pass through lower(less than 100-year) storm flows. The Whitewater River Crossing at Bob Hope Drive in Rancho Mirage is also all-weather. In addition, all-weather access is also available across the Whitewater River at Washington Street and Miles Avenue, in La Quinta and Indian Wells, respectively. The City of Palm Desert has plans to design and build all-weather crossing across the Whitewater River at both Portola Avenue and Cook Street as funding becomes available. Based upon the availability of existing all- weather crossings along the Whitewater River, improvements at Portola Avenue and Cook Street are warranted. Mid-Valley Stormwater Channel: In the planning area, this drainage facility is designed to run along the south side of the Union Pacific Railroad right-of-way. Existing and planned improvements will convey flows under elevated roadways/approaches to I-10 interchanges. No significant access issues are associated with this drainage facility either now or in the future. Thousand Palms: The community of Thousand Palms and the area generally north of I-10 is subject to both sheetflow and channelized flooding from drainage originating in the Indio Hills. The Thousand Palms Canyon Wash conveys flows, which originate north of the Indio Hills and along the south-facing slopes of the Little San Bernardino Mountains. The US Army Corps of Engineers and the Coachella Valley Water District recently completed design analysis and project approvals for an area-wide flood control project, which will protect the vast majority of homes and businesses in the community of Thousand Palms from upstream flooding. 3. Mitigation Measures As discussed above, intersections constitute the most constrained portion of the roadway network in the City and balance of the planning area. The following table provides a detailed analysis of the improvements (mitigation measures), both those akeady programmed and new/additional improvements that are needed to provide acceptable levels of service. It should be noted that although improvements are cited that will bring some intersections to LOS C, these improvements are not needed in most instances in order to achieve acceptable levels of service. I I il I I III-46 205 it a I,and Use Co patibility Traffic Circulation TN/City of Palm Desert 2ii.tigation Keasures Draft Genera!Plan EIIt Section III-Existing Conditions,Impacts and Mitigation Measures Table III-15 Intersection Mitigation Improvements and Resulting Levels of Service Ci and Unincor orated Plannin Area/Post 2024 Period INTERSECTION APPROACH LANESZ NORTH- SOUTH- EAST- WEST- DELAY3, LEVEL OF I TRAF ICt BOUND BOUND BOUND BOUND SECS. SERVICE INTERSECTION CONTROL L T R L T R L T R L T R AM PM AM PM ob Hope Dr.(NS)at: I-10 WB Ramps(E TS 1 3 0 0 3 1» 0 0 0 2 0 1 --° --° F F With LOS "D"Improvements TS 2 3 0 0 3 1» 0 0 U 2 0 2 19.9 35.5 B D With LOS"C'7mprovements TS 2 3 0 0 3 1» 0 0 0 2 0 1» 20.7 33.9 C C I-10 EB Ramps(EV TS 0 3 1 1 3 0 1.5 0 1.5 0 0 0 34.4 -° C F With LOS "D"Improvemenrs TS No Intermediate LOS"D"Improvements With LOS "C"I rovements TS 0 3 1 2 3 0 1.5 0 1.5 0 0 0 21.3 32.2 C C ark View DrJP'ainters Path(NS)at: SR-111 TS 0.5 0.5 1 0.5 0.5 1 1 3 0 1 3 1 26.5 28.3 C C R-111 (NS)at: Fred Waring Dr.(EV TS 2 3 1 2 3 1 2 3 0 2 3 0 48.6 -4 D F With LOS"D"Improvements TS 2 3 1 2 3 1 2 3 0 2 2 1> 28.9 36.2 C D With LOS"C"Im rovements TS 2 3 1 2 3 1 2 3 0 2 2 1» 29.3 343 C C esert Crossing(NS)at: SR-111 (E TS 1.5 0.5 1 0.5 0.5 0 1 3 1 2 3 0 343 34.9 C C 1 PaseolTown Center Way(NS)at: SR-111 R TS 1.5 1.5 1 1.5 1.5 1 1 3 0 1 3 0 33.5 35.0 C C laza Way(NS)at: SR-111 TS 1 1 1 1 0.5 1.5 2 3 0 1 3 1 19.8 29.9 B C onterey Av.(NS)at: I-10 EB Ramps(EW) TS 0 3 1 2 2 0 2 0 1» 0 0 0 24.4 31.7 C C Dinah Shore Dr.(EV TS 2 3 1 2 3 1» 2 2 1 1 2 1» 35.0 43.8 C DS With LOS "C"Improvemenis(Altl) TS 2 3 1 2 3 1» 2 3 1> 16 36 1»6 31.6 34.6 C C With LOS "C"Improvements(Alt2) TS 2 3 1 26 36 1»6 3 2 1> 1 3 1» 29.2 34.7 C C Gerald Ford Dr.(EV TS. 2 3 1 2 3 1 2 3 1 2 3 1 33.5 29.7 C C Frank Sinatra Dr. (EVV TS 2 3 1 2 3 1 2 3 1» 2 3 1» 24.5 263 C C III-47 206 A uu u oa u uu u u uuuuuu c u vu u aaw Ea a o p q C U U U U U U U U Q7 U U U U U U U U U U U ,L, U '-' q r r v o; r oo O O o0 N Q oo .r fn N c''1 c M '7 M 'V M .r .--i tt V'1 O o0 p1 V O '-- M N eNMt+ N N c+ c^ M N M N N .-i c. M M N ; O v1 N - t N vl -+ O oo MV'i I l O O oo p ' O: N O v 00 N iry d' O O O ON N N t 1 N N N M M .--i N N N N c 1 N M N M M N ,.~. a; O O '"' "'' O O •-- •-- •- O .r .-- .-. p .-- O O .-r .-- p ,,,r C .. UM .... M M N M M M N O M r1 M O N N c+ N M c+1 M M O O 3 WH N -- N N O -• N N .- O N N N N -r N N p ,...i N ~ ~ ~ A O -- -- Ooo .. .. .- . .-. ..., .., o o .- ... o o .-• c c o ,,.., .ao M N M M M N O M M M O N M M N M M M M p 1 O C N N N N O --+ N N -+ -r N N N O rr N N O .-- .-r N .-. p V? Y O .-. .-- p ,- „y ZO, .-/i .-r . p p ^ '_' p `-i O O .-i O O m M M N N M t+ N N N N N N O - N N M t+1O N N N N O 0 N .r 0 .-+ ly .-i -r .r .-- .r ly O .r c N O ,.. t yO •-- .-r .-y O O .-r .- .-r .r .-r .r .-r p ^ ,. N A r C N ^' O y M N N N M N N N N N N N p ,... hiNN M M d N - (V .r ,.y 1 N h C 0 O N .r . p .r .r N V? .. r .-r .-ryr O O J a i I ti,E- F E+ F F, v cn n v v v v v v v cn vF- E- E- F+ E- F F E- E- E- E+ E+ E F E- [-+ E- F [- E-I 0 J CI h y C M ' j j« L' e C ii C! o N v t''., Q C ^ O aC y ts c o v 4' o eo u N ' ca ,n W ^ y p, ' a a y U • . Q . a'i b b p f a ` . o v 2 40 a a a ;, a p a , ° ao s p paqq s a U a. w vai > o tL f: C; o o 0 y O '~ ' '' a '" o o w o .; u wux w -; > " w oa g 3 207 a a i I,and Use Compatibility-Traffic/Circulation Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Secrion III-Existing Conditions,Impacts and Mitigation Measures With LOS"C"Improvements TS 0 3 4 1 3 0 1.5 0.5 1» 0 0 0 19.5 28.8 B C Gerald Ford Dr.(ER TS 2 3 1 2 3 1 2 3 1» 2 2 1 43.5 50.1 D D With LOS"C"Improvements TS 2 3 1 2 3 1> 2 3 1» 26 26 1>6 33.3 31.2 C C Frank Sinatra Dr.(EV T5 2 3 1 2 3 1 2 3 1 2 3 1 34.8 40.3 C D With LOS "C"Improvements TS 2 3 1 2 3 1 2 3 1 26 36 16 27.8 34.4 C C Country Club Dr.(E TS 2 3 1 2 3 1 2 3 1 2 3 1 26.5 30.3 C C Hovley Ln.E.(ER TS 2 3 1 2 3 1 2 2 1 2 2 1 38.4 49.4 D D Wirh LOS"C"Improvemenls TS 2 3 1 2 3 1 2 2 1 2 2 1> 31.6 34.0 C C Fred Waring Dr.(EV TS 2 3 1 2 3 1» 2 3 1 2 3 1» 33.9 44.8 C D With ZAS "C"Improvemerus TS 2° 3° 1° 2 3 1» 2 3 1 2 4 1» 30.1 32.7 C C SR-111(EV TS 2 3 1 2 3 1 2 3 1 2 3 1 37.9 34.7 D C With LOS"C"1 rovements TS 26 36 16 2 3 1 2 3 1 2 3 1 34.6 33.5 C C erald Ford Dr.(NS)at: Frank Sinatra Dr.(EV TS 0 0 0 1 0 1 1 3 0 0 3 0 10.5 15.8 B BS ldorado Dr.(NS)at: Country Club Dr.(E TS 2 3 1 2 3 1 2 3 1 2 3 1 31.1 33.7 C C Frank Sinatra Ih.(EV4 TS 1 1 1 0.5 0.5 1 1 3 1 1 3 0 17.6 19.1 B B Hovley Ln.E. (E TS 0.5 0.5 0 1.5 0.5 1 1 2 0 0.5 1.5 0 12.3 23.0 B C SR-111 TS 1 2 1 1 2 0 1 3 1 1 3 1 32.3 28.3 C C asis Club Dr. (NS)at: Country Club Dr.(EV TS 1 2 1 1 2 1 2 3 1 2 3 1 31.7 37.4 C D With LOS "C"Improvements TS 16 26 16 1 2 1 2 3 1 2 3 1 31.7 31.2 C C Hovle Ln.E.(E TS 0 0 0 1 0 1 1 2 0 0 2 0 31.9 31.5 C C ashington St.(NS)a Vazner Rd. (EV TS 2 3 1> 2 3 1 1 2 1 2 1.5 1.5 33.1 --° C F With LOS"C"Improvements TS 2 3 1> 2 3 1 I 2 1> 2 1.5 1.5 32.5 34.7 C CS I-10 EB Ramps(E TS 0 3 1 2 3 0 1.5 0.5 2 0 0 0 29.8 -` C F With LOS "D"Improvements TS 0 3 1 2 3 0 1.5 0.5 1» 0 0 0 19.6 40.3 B D With LOS"C"Improvements TS 0 3.5 1.5 2 3 0 1.5 0.5 1» 0 0 0 17.8 30.9 B C Country Club Dr.(EV TS 2 3 1 2 3 1» 3 2 1 26 36 I6 36.3 48.3 D D With LOS "C"Improvements T5 2 3 1 2 4 1» 3 2 1 2 3 1> 33.1 32.7 C C Fred Waring Dr.(ER TS 2 3 1 2 3 1 2 3 1 2 3 1 34.1 -° C F With LOS 'D"Improvements TS 2 3 1 2 3 1 2 3 1> 2 3 1 27.7 54.7 C D With LOS"C"Improvemenls TS ' 3 3 1 26 36 16 2 3 1» 2 3 1 28.3 33.2 C C Hovley Ln.E. (EV TS 2 3 1 2 3 1 2 2 1 2 2 1 31.1 34.8 C CS III-49 208 Lua+u voc vv y4 iv ii i«i« f . Mitigation Measures TN/City of Palm Desert Drafi General Plan EIR Section III—Exisring Condirions,Impacts and Mitigation Measures arner Rd.(NS)at: I-10 WB Ram s at Washin n S TS 2 2 0 0 3 1 2 0 1 0 0 0 13.5 11.8 B B TS-Traffic Signal;AWS-All Way Stop;CSS-Cross Street Stop. 2 When a right turn is designated,the lane can either be striped or unstriped.To func[ion as a right turn lane there must be sufficient width for right turning vehicles to travel outside the ttu ough lanes. L=Left;T=Througti;R=Right;>=Right Tum Overlap;»=Free Right Turn 3 Delay and level of service calculated using the following analysis softwaze:Traffix,Version 7.5 R1 (2001). Delay High,Intersection Unstable,Level of Service"F". 5 Pedestrians assumed not to occur on every cycle. 6 Remove pedestrian minunum green(no ped crossing),WB Approach=North Leg,EB Approach=South Leg, NB Approach=East Leg,SB Approach=West I,eg III-50 209 Land IIse Compatibility-Traffic/Circulation Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III-Existing Conditions,Impacts and Mitigation Measures Mitigation via Roadway/Intersection Improvements As set forth in the Circulation Element of the Draft Comprehensive General Plan, the City shall make a good faith effort to assure that intersections operate at LOS D or better. The improvements set forth in Table III-15, above, are mitigation measures designed to reduce Post 2020 (buildout) traffic impacts to levels of insignificance (LOS D). The improvements include the provision of new or additional turn lanes and through lanes, and in a few instances limitations on pedestrian green-time or access on certain legs of intersections. None of the prescribed limitations on pedestrian access are a significant impediment to pedestrian use and are located at intersections with the highest volumes and widest cross sections. On-Going Monitoring and Analysis The programmatic level of the General Plan study suggests that on-going and project-specific traffic monitoring is required to assure adequate levels of service in the long-term. The City shall periodically monitor conditions along roadway segments where General Plan level analysis indicates high levels af traffic congestion. In these azeas of the roadway network intersection and progression analysis shall also be conducted to advance infrastructure planning to address areas of existing and anticipated traffic congestion. Mitigation via Alternative Modes of Transportation With the limited exception of the consideration of busing of students to schools, the traffic impact analysis conducted for the General Plan update does not consider the effects of the use of mass transit, biking or pedestrian-accessible land use planning on traffic volumes or roadway operations. As noted in the General Plan Traffic Study: While the model is not intended to reflect vehicle trip reduction characteristics associated with the benefits of such a system combined with the proper mix of land uses, an especially well developed nan-motorized transportation system could potentially reduce vehicle traffic substantially."` The General Plan Traffic Study also cites the continuing imbalance between the production and attraction of trips in the University Park planning area, caused by an abundance of commercial, institutional and industrial trip attractors and the limited number of sources of home-based production residences). The study cites the unquantifiable but substantial potential for vehicle trip reduction from the compact mix of land uses, which promotes the use of buses,bike paths and pedestrian access. Bus Access As set forth in the general Plan Circuladon Element, the City shall continue to coordinate and cooperate with the Sunline Transit Authority to expand and optimize the use of bus transit through the expansion of bus routes, the construction of user-friendly bus stops and shelters, and through joint ventures between Sunline and major poten6al users, including the colleges, retail and employment centers. City of Palm Desert General Plan Tra c Study.Prepazed by Urban Crossroads,Inc.September 5,2003. III-51 210 Land IIse Compatibi ity-Traffic/Circulation Mitigation Measures TN/City of Palm Desert Draft General Plan EIIt Section III-Existing Conditions,Impacts and Mitigation Measures Golf Cart and Bike Paths The City golf cart path network is also a potentially significant altemative mode of transportation. The City shall continue to enhance the accessibility to and use of the golf cart and bicycle path network to the greatest extent practicable. Mitigation via lmplementation of General Plan Policies and Programs The Circulation Element of the Draft Comprehensive General Plan includes fourteen (14) policies and twenty-nine (29).programs, which are designed to enhance the operation and efficiency of all aspects of the transportation system serving the planning area. Policies and programs address the on-going monitoring and management of traffic volumes and operating conditions, and the timing of required improvements to maintain acceptable levels of service. Summary of Mitigation The Draft General Plan, this EIR and the general Plan Traffic Study provide both programmatic and concrete/prescriptive actions and measures that are expected to reduce transportation impacts associated with the implementation of the proposed General Plan below levels of significance. In conjunction with the existing various regional transportation initiatives coordinated through the City and CVAG, the performance of transportation systems serving the City and planning area can be further enhanced. The continued thoughtful integration of land uses will also increase opportunities for mass transit and non- motorized means of transportation. Controlling access onto major arterial roadways will also serve to preserve capacity and limit the costs associated with expanded roadway infrastructure. Mitigation Monitoring/Reporting Program A. The City shall review and update the master plan of roads, including standards for ultimate rights-of-way and pavement width, and provide a schedule for securing right-of-way and constructing improvements consistent with the projected needs and standards set forth in the Circulation Element and Program EIR. Responsi6le Parties: City Council, Community Development Department, Public Works Department B. The City shall establish and maintain ongoing consultation and coordination with adjoining planning and engineering staffs of adjoining cities and transportation planning agencies to study and implement effective means of preserving and improving capacity along major roadways. Coordination efforts may include synchronized signalization, consolidation of access drives and restriction of access, construction of additional travel and turning lanes, raised median islands, and improvements to critical intersections. Responsible Parties: Public Works Department, Community Development Department, Adjoining Cities, CVAG,Riverside County, CalTrans C. The City shall periodically evaluate the operating conditions at each of the Interstate-10 interchanges serving the City, including Monterey Avenue, Cook Street, future Portola Avenue and Washington Street, and shall make recommendations to responsible agencies regarding needed improvements. Responsible Parties: Public Works Department, Community development Department, CalTrans,Riverside County, CVAG III-52 211 Land Bse Compatibility TrafficjCirculation Mitigation Measures TN/City of Palm Desert Draft General Plan E1R Section III—Existing Conditions,Impacts and Mitigation Measures D. The City shall pro-actively consult and coordinate with CVAG, SCAG and CalTrans and represent the City in transportation planning meetings to assure that City policies, programs and strategies are given full consideration in resolving regional transportation issues affecting the cammunity. Responsible Agency: City Council, Community Development Department, Public Works Department, CVAG, SCAG, CalTrans E. The City shall continue to pro-actively gromote the mass transit system expansion and innovation through ongoing consultation and coordination with the SunI,ine Transit Agency and CVAG. Responsible Parties: City Council, Cammunity Development Department, SunLine Transit Agency, CVAG F. The City shall continue to consult and coordinate with the SunLine Transit Agency and encourage the development of rideshare and other alternative, high occupancy transit programs for employers with sufficient numbers of employees, and for individuals seeking to locate potential rideshare partners. Responsible Parties: City Council, Community Development Department, SunLine Transit Agency G. The City monitor the effectiveness of land use planning proposals that integrate the assemblage of land uses, optimizes nearby interactions, reduces the need for travel outside the neighborhood, and shortens trips to work, shopping,public services and public park facilities. Responsi6le Parties: Community Development Department, Redevelopment Agency, Chamber of Commerce H. The City monitor the effectiveness of its master plan of bicycle-ways and muld-use trails, including secure bicycle and golf cart storage facilities, and other support facilities which increase bicycle and golf cart use. Responsible Parties: Community Development Departments,Public Works Department I.The City shall monitor the planning and development of all-weather crossings as part of the community's Master Drainage Plan and its implementation. Responsible Parties: Community Development Department, Public Works Department, Coachella Valley Water District i J. The City shall periodically review raadway design specifications, design standards and guidelines for public and private streets, and their effectiveness at meeting existing and _. anticipated demand, reducing traffic speeds in neighborhoads, and facilitating safe and ef cient use of bicycles and other alternative modes of transportadon. Responsible Parties: Community development department, Public Works Department,Planning i Commissian, City Council i III-53 212 Soils and Geology—Project Impacts TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures 2.Pro ect Impacts The buildout of the General Plan will increase the potential for a number of geologic and seismic hazards within the General Plan study area. The construction of all types of structures in varying terrain could expose persons and property to hazards relating to subsidence, slope instability and rock fall, and seismic hazards. Soils The General Plan study area includes lands adjacent to the Santa Rosa Mountains, the Indio Hills and the Little San Bernardino Mountains, where slope failure and rock fall could occur. Limited development p otential exists for the southern portion of the City, which is generally designated for Open Space land uses. In the northern portion of the planning area, residential development could occur in close proximity to slopes. Development in these areas should include the preparation of site specific analysis to assess the potential impacts of rock fall and slope stability prior to construction of structures for projects which might be down-gradient from such hazard areas, as shown in Exhibit III-12. IAlluvial fan deposits and blowing sand deposits throughout the General Plan study area are vulnerabletocollapseand/or hydrocompaction. When saturated, these soils could lose cementation and cause damage to structures and foundations that are built upon them. In areas proposed for development, site- specific studies must be conducted to e;aluate the collapse potential. Subsidence in the Coachella Valley is closely associated with groundwater overdraft. Structures sensitive to slight changes in elevation, such as canals, sewers and drainage improvements are generally sensitive to the effects of subsidence and may be damaged if subsidence occurs. Mitigation of I subsidence and its potential impacts will require a regional approach to groundwater conservation and recharge. 1 The northern portion of the planning area is highly susceptible to wind erosion. Increased development and surface c isrupdon resulting from grading and construction loosens soils and increases the amount of dust and other small particles in the air. However, in the long-term, the installation of landscaping I associated with new developmettt will contribute to the stabilization of drifting sand. The City currently requires the preparation of erosion control plans as part of the grading permit process, providing site- specific mitigation for this hazard with each development. Project-specific erosion control measures Imust continue to be implemented to protect on-site soils. The potentially adverse health impacts associated with suspended dust and blowsand are further discussed in Section IlI-H, Air Quality. I Seismicity Two Alquist-Priolo Earthquake Fault Zones occur within the General Plan study area. In addition, the I area will be subject to significant ground acceleration and potential damage from significant earthquakes within the next 50 years. I Earthquakes can trigger slope instability, liquefaction, settlement and flood inundation, and can cause a variety of localized, but no less destructive hazards such as urban res, dam failures, and toxic chemical releases. Smaller structures could be shifted from their foundations and cause gas leeks and fires. III-69 213 Soils and Geologp Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures The greatest hazard with smaller structures is that of unreinforced masonry buildings. The City has identified and caused to be retrofitted four such structures. The City Department af Building and Safety adopted the 1997 Uniform Building Code (UBC). New development in the City will be subject to this, or later versions of the UBC andlor International Building Code, and should be able to resist major earthquakes without collapsing, although structural damage could occur. Liquefaction Liyuefaction hazards in the City and planning areas are considered generally low, except in the northern portion of the planning area, in a small area between the Indio Hills and the Little San Bernardino Mountains. This area could develop with limited residential development with buildout of the General Plan. The City should require site specific liquefaction studies as development is proposed in these areas. The analysis will include mitigation measures should liquefaction be considered likely on these properties. 3.Mitigation Measures A. The City shall establish and maintain an information database containing maps and other information which describe seismic and other geotechnical hazards occurring within the City boundaries, sphere-of-influence and planning area. B. Proper structural engineering, which takes into account the forces that will be applied to structures by anticipated ground motions, shall provide mitigation for ground shaking hazards. Seismic design shall be in accordance with the most recently adopted editions of the Uniform Building Cade and/or International Building Code, and the seismic design parameters of the Structural Engineers' Association of California. C. Proposals for development on wind or stream-deposited sediment on the valley floor shall include site-specific subsurface geotechnical investigations that address settlement, liquefaction, and collapsible soils. These hazards can generally be mitigated by proper excavation, compaction and foundation design. D. The City shall continue to require expansive soils testing as part of its grading and building codes, and shall assure the implementation of mitigation measures which minimize these hazards, such as the use of reinforcing steel in foundations, drainage control devices, overexcavation and backfilling with non-expansive soils. E. The City shall continue to support and encourage local and regional groundwater conservation measures in an effort to mitigate potential subsidence resulting from groundwater overdraft (see also Water Resources discussion in Section III-F). F. All grading permit requests shall include a PM10 Management Plan in conformance with the latest approved Coachella Valley PM10 requirements in place at the time construction occurs. Blowing dust and sand during grading operations shall be mitigated by adequate watering of soils prior to and during grading, and limiting the area of dry, exposed soils during grading (see also Air Quality discussion in Section III-H). m-7o 214 Soils and Geologp MiCigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures G. Where development is proposed adjacent to or in close proximity to steep slopes, site-specific geotechnical studies shall be conducted to evaluate the potential for rock falls and/or slope failure, and to establish mitigation measures which minimuze these hazards. H. All development proposed within Alquist-Priolo Earthquake Zones shall comply with State requirements for site-specific study, including trenching to locate fault traces, and to submit this analysis prior to any development approval for the property. H. During site grading, all existing vegetation and debris shall be removed from areas that are to receive compacted fill. Any trees to be removed shall have a minimum of 95% of the root systems extracted. Man-made objects shall be overexcavated and exported from the site. Removal of unsuitable materials may require excavation to depths ranging from 2 to 4 feet or more below the existing site grade. rI.All fill soil, whether on site or imported, shall be approved by the individual project soils engineer prior to placement as compacdon fill. All fill soil shall be free from vegetation, organic material, cobbles and boulders greater than 6 inches in diameter, and other debris. Approved soil shall be placed in horizontal lifts of appropnate thickness as prescnbed by the soils engineer and watered or aerated as necessary to obtain near-optimum moisture content. J.Fill materials shall be completely and uniformly compacted to not less than 90% of the I laboratory maximum density as determined by ASTM test method D-1557-78. The project soils engineer shall observe the placement of fill and take sufficient tests to verify the moisture content, uniformity, and degree of compaction obtained. In-place soil density should be deternuned by the sand-cone method, in accordance with ASTM Test Method D-1556-64 (74), or equivalent test method acceptable to the City Building and Safety Department. I K. Finish cut slopes generally shall not be inclined steeper than 2:1 (horizantal to vertical). Attempts to excavate neaz-vertical temporary cuts for retaining walls or utility installations in excess of 5 feet may result in gross failure of the cut and may possibly damage equipment and Iinjure workers. All cut slopes must be inspected during grading to provide additional recommendations for safe construction. L. Finish fill slopes shall not be inclined steeper than 2:1 (horizontal to vertical). Fill slope surfaces shall be compacted to 90% of the laboratory maximum density by either over-lling and cutting back to expose a compacted core or by approved mechanical methods. M. Foundation systems that utilize continuous and spread footings are recommended for the support -- of one and two-story structures. Foundations for higher structures must be evaluated based on structure design and on-site soil conditions. N• Positive site drainage shall be established during finish grading. Finish lot grading sha11 include a minimum positive gradient of 2% away from structures for a minimum distance of three (3) feet and a minimum gradient of 1% to the street or other approved drainage course. III-71 215 Soils and Geology Mitigation Measures TN/City of Palm Desert Draft General Plan BIIt Sectibn III-Existing Conditions,Impacts and Mitigation Measures O. An adequate subdrain system shall be constructed behind and at the base of all retaining walls to allow for adequate drainage and to prevent excessive hydrostatic pressure. P. Udlity trench excavations in slope areas or within the zone of influence of structures should be properly backfilled in accordance with the following recommendations: a) Pipes shall be bedded with a minimum of 6 inches of pea gravel or approved granular soil. Similar material shall be used to provide a cover of at least 1 foot over the pipe. This backfill shall then be uniformly compacted by mechanical means or jetted to a rm and unyielding condition. b) Remaining backfill may be fine-grained soil. It shall be placed in lifts not exceeding 6 inches in thickness or as determined appropriate, watered or aerated to near optimum moisture content, and mechanically compacted to a minimum of 90% of the labaratory 'maximum density. c) Pipes in trenches within 5 feet of the top of slopes or on the face of slopes shall be bedded and backfilled with pea gravel or apgroved granular soils as described above. The remainder of the trench backfill shall comprise typical on-site Il soil mechanically compacted as described in the previous paragraph. Mitigation Monitoring/Reporting A. During any project site preparation, the City Engineer and Building Department staff shall conduct site inspections to ensure compliance with applicable City ordinances and conditions of approval, as well as any additional erosion control mitigation measures specified in this document. Responsible Parties: City Engineer,Building Department, developer, grading contractor. B. Subsequent to preparation of final development plans and specifications, but prior to grading and construction, the foundation plans should be reviewed by the City Engineer to verify compatibility with site geotechnical conditions and conformance with recommendations contained herein. The need Eor additional subsurface exploradon will be determined on a project by project basis. Responsible Parties: City Engineer, geotechnical consultant. C. When appropriate, rough grading of a project site shall be performed under geological and engineering observation of the geological consultant and/or the City Engineer. Rough grading includes, but is not limited to, grading of averexcavation cuts, fill placement, and excavation of _ temporary and permanent cut slopes. Responsible Parties: City Engineer, geotechnical consultant. D. As determined appropriate by the City Engineer and consulting geologist, the geotechnical consultant and/or the City Engineer shall perform the following observations during site grading and construction of foundations to verify or modify, if necessary, conclusions and recommendations in the project's geotechnical report: III-72 216 Hydrology TN/City of Palm Desert Draft General Plan EIIt Section III—Existing Conditions,Impacts and Mitigation Measures 1. Observation of all grading operations. 2. Geologic observation of all cut slopes. 3. Observation of all key cuts and fill benching. 4. Observation of all retaining wall back cuts, during and following completion or excavation. 5. Observation of all surface and subsurface drainage systems. 6. Observation of backfill wedges and subdrains for retaining walls. 7. Observation of pre-moistening of subgrade soils and placement of sand cushion and vapor barrier beneath the slab. 8. Observation of all foundation excavations for the structure or retaining walls prior to placing forms and reinforcing steel. 9. Observation of compaction of all utility trench backf'ill. Responsible Parties: City Engineer and/or geotechnical consultant. D. Hydrology 1. Existing Conditions Hydrology is significantly influenced by the geography and climate of a particular lacale. The Coachella Valley and the City of Palm Desert occur in a low desert basin, flanked by local mountain rar ges that isolate the region from moist and cool maritime air masses coming on shore to the west, creating a subtropical desert climate.The desert floor receives a very low mean annual rainfall, ranging from 4 to 6 inches per year. In some years, no measurable rainfall has been reported. In general, precipitation occurs during the winter months, between December and March. The surrounding mountain slopes generally receive rainfall that increase with elevation. The mountains and upper elevations of the General Plan study area are generally cooler, with about a 5°F drop in temperature with every 1,000-foot increase in elevation. Daytime temperatures in the valley reach up to 125°F occasionally during the summer season and winter temperatures rarely fall below freezing. Although the Coachella Valley has a low mean average rainfall, the region is susceptible to flash floods generated by occasional high-intensity thunderstorms and tropical storms, occurring prima-ily during late summer and early fall. Dry ground surfaces can become saturated by intense and excessive rainfall, resulting in substantial reduction of percolation rates and increasing runoff. Permeable soils covered by asphalt and other impervious surfaces associated with development also contribute to rainwater runoff. Potential landslides, and debris or mudflows can occur in hilly or mountainous areas when saturated Isoils are weighed down by water. Flash flooding in the Coachella Valley is generally limited to washes extending from mountain canyons, floodways and floodplains adjacent to rivers and low-lying - drainages. Flooding on alluvial fans can be particularly damaging because floodwaters move at highIvelocitiesandspreadacrosswideunchannelizedareas. Given that most of the City is situated on alluvial fans, the hazard posed by flooding is significant if not mitigated. Flooding can also be an attribute of unusually warm conditions occumng in early spring, which cause the snow pack on adjacent mountains to melt rapidly. In fact, nearly all of the surface water in the Coachella Valley originates from snow melting off the slopes of the San Bernardino, Little San Bernardino and Can Jacinto Mountains. The water is usually absorbed by porous sands and gravels on III-73 217 Hydrology Project Impacts TNlCity of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures 2. Project Impacts Potential flooding problems in the City of Palm Desert, its sphere-of-influence and planning area are associated with storm flows in the Whitewater River and its tributaries, flooding on the alluvial fans, and to runoff associated with the Indio Hills and the foothills of the San Bernardino and Little San Bernardino Mountains. Ongoing growth and urbanization in the General Plan study area will result in the creation of additional impervious surfaces such as paved roads; parking lots, and sidewalks which can cause an increase in the amount of runoff generated. 5ince the bedrock formation of the hills and mountains surrounding and occurring in the General Plan study area have low permeability, heavy runoff from these areas during intense storms may be inevitable. Future development facilitated by the proposed General Plan could also potentially alter and/or disturb existing drainage patterns, which can result in the accumulation of considerable amounts of debris in the event of a major storm. Large developments may incorporate a network of channels which can include golf courses, greenbelts and other open space areas to convey and collect on-site runoff. The proposed General Plan utilizes land use planning as an effective strategy to manage potential flood hazards and protect lives and properties in areas subject to flooding. The adoption and implementation of the proposed General Plan will facilitate the regulated development of various land uses and roadways, and will put in effect policies, programs and mitigation measures which directly address the flood hazards facing the City. The foremost goal of the proposed General Plan is to protect the general health, safety and welfare of the community from potential flood and associated hazards. Its focus includes the evaluation of the potential for and extent of major future flooding. The City will coordinate with FEMA in the redesignation of the 100-year flood plains within the General Plan study area. The Plan also calls for the protection of groundwater resources from polluted runoff by implementing the NPDES permitting process.The proposed Plan acknowledges and addresses the need for and availability of adequate access and evacuation routes in the event of a major community disaster or threat. While the proposed General Plan aims to protect the community for flood hazards, it has also recognized that there are opportunities for the provision of open space and multiple uses, wildlife, pedestrian and equestrian corridors within major drainages. In general, the implementation and adoption of the proposed General Plan is not anticipate.d to result in substantial adverse hydrological impacts. Through thoughtful planning and coordination land use development intensities are regulated and improvements and construction of new storm water facilities are identified. Moreover, the policies and plans of the proposed General Plan seek to establish and enhance inter-agency planning cooperation, and facilitate the development of effective and cost- effective local and regional drainage facilities. 3. Mitigation Measures The City will continue to review and assess hydrology analyses on a project-by project basis. The findings of these studies will be integrated into the project master drainage plans appropriately, and the ICity will have the opportunity to require additional on-site flood control facilities as necessary. I IIII-81 218 Hydrology Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures The proposed General Plan intends to provide a comprehensive assessment of flooding and other hydraulic hazards in the community, and complete facilities and services effectively protecting lives and property. The following mitigation measures shall be implemented to reduce potential impacts associated with flooding and hydrology to less than significant levels: A. The City shall continue to update hydrologic conditions in the General Plan study area, and plan and pro-actively coordinate with other responsible agencies in upgrading the City's local and regional drainage system. B. The City shall implement the recommendations of the 1993 Master Drainage Plan study. Local regulations and guidelines shall be established which are consistent with the Master Plan of Drainage, direct the management of runoff, and provide for local drainage facilities support the effective use of regional drainage facilities. C. The City shall monitor and periodically update the Master Plan of Drainage to reflect changes in local and regional drainage and flood conditions. D. The City shall develop, update and maintain Capital Improvement Plans for drainage management based upon the Master Drainage Plan project descriptions. E. The City shall place the highest priority for improvements to be implemented through the Master Drainage Plan on the following stormwater facilities: Whitewater River Channel, the Palm Valley Channel, the Deep Canyon Channel, and City of Indian Wells drainages located to the east of the City. F. The City shall evaluate the need for requiring an upgrade from a 25-year on-site retention to a 100-year on-site retention in crucial locations of the General Plan, as described by the Master Drainage Plan. G. The City shall coordinate and cooperate with responsible regional agencies in achieving multi- use agreements of major drainage facilities, including debris basins and flood control channes and designing safe and attractive recreational facilities, which are consistent with the fiinctional requirements of these facilities. H. The City shall require all new development to incorporate adequate flood mitigation measures, such as grading that prevents adverse drainage impacts to adjacent properties, on-site retention of runoff, and the adequate siting of structures located within flood plains. I.The City will ensure that adequate, safe, all-weather crossings over drainage facilities and flood ' ' control channels are provided where necessary, and are maintained for access during major storm events. J.The City shall investigate the possibility of participating in the nationwide inventory and evaluation of bridges to address the potential impacts of bridge scour during major flood events. m-82 219 Water Quality/Resources TN/City of Palm DeseR Draft General Plan EIIZ Section III—Existing Conditions,Impacts and Mitigation Measures Mitigation Monitoring/Reporting Program A. The City Engineer shall regularly, and at least once a year, report to the City Council on progress made in developing local drainage plans and implementing drainage control projects. The status of regional drainage plans and facilities affecting flood control in the City shall also be reported upon. Responsible Agencies: City Engineer, City Council, CVWD B. The City Engineer shall review and approve project-specific hydrology studies and mitigation plans for development proposals, and assure their adequacy with regard to stormwater management and pollution control. Responsible Agencies: City Engineer E. Water Quality/Resources 1.E cisting Conditions Complex tectonic forces have created the unique physiographic form of the Coachella Valley. The region is characterized as a deep trough which has been progressively filled with sands and gravel that have eroded from the surrounding mountains and hills. Over millions of years, this sediment-lled basin has functioned as a repository for rainfall, mountain runoff and occasional inundation from the Colorado River. Although considered as one of the driest regions in the United States, the Coachella Valley is underlain by a large groundwater basin that stores fresh water. This basin is identified by the Department of Water Resources as the Coachella Valley Ground Water Basin. The Coachella Valley Ground Water Basin extends from the surface drainage divide at the west end of San Gorgonio Pass to the Salton Sea on the southeast and includes over 690 square miles.10 The Coachella Valley Crround Water Basin is divided into distinct subbasins and subareas.The subbasins are the San Gorgonio Pass, Mission Creek, Whitewater River, and Desert Hot Springs. Subbasin boundaries are generally defined by seismic faults that restrict the lateral movement of groundwater, including the Mission Creek and Banning strands of the San Andreas Fault Zone. It is estimated that between the high ground water elevations that occurred during the 1935-1936 season and a depth of 1,000 feet below the ground surface, the Coachella Valley Ground Water Basin has a capacity for storing about 39,00O,OOU acre-feet of ground water." Whitewater River Subbasin The Whitewater River subbasin, the largest groundwater regository for the Coachella Valley, underlies the City of Palm Desert and a substantial portion of the valley floor. It is the primary groundwater - repository serving the Palm Desert General Plan study area. In general, the Whitewater River subbasin extends from the junction of Interstafe-10 and Highway 111, to the Salton Sea approximately 70 miles to the east and encompasses approximately 400 square miles. The subbasin is bounded on the north and lo `< Coachella Valley Investigation,Bulletin 108,"Department of Water Resources,July 1964.tt Ibid. III-83 220 Water Quality/Resources TN/City of Palm Desert Mitigation Measures Draft Genetal Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures Based on CVWD's usage factors, the bui ldout of the General Plan will result in usage of 312,562 acre feet of water annually. This analysis assumes maximum buildout of all land uses, and is therefore expected to be conservative. Development of new projects in the General Plan study area will result in gradual increases in water consumption. Implementation and buildout of the proposed General Plan will contribute to the cumulative impacts of urban development on groundwater resources in the Coachella Valley, including the condnued reduction in the amount of potable groundwater in storage. As CVWD develops and implements the mitigation measures included in their Water Management Plan, F a number of conservation methods are likely to be implemented which will reduce the total consumption in the District's service area. The Management Plan's Prefened Alternative results in the reversal of current overdraft conditions in the long term, and the accommodation of city buildouts throughout the Valley. Impacts to water quality resulting from the adoption and implementation of the proposed General Plan are anticipated to be comparable to, or slightly greater than those resulting from the buildout of the current General Plan. Groundwater contamination could also potentially result from the additional development facilitated by the proposed General Plan. The policies and programs of the proposed General Plan aim to reduce impacts to water resources to less than significant levels and assure the continued implementation of federal, state, local and other applicable pollution control standards. 3.Mitigation Measures Water Conservation With increasing demands on limited water supplies in the Coachella Valley; efforts to reduce per capita consumption are a priority. One of the best opportunities for water conservation is the implementation of water-efficient landscaping design and management. The City has adopted a Water-Efficient Landscape Ordinance, as required by the California Water Conservation in Landscaping Act of 1990 (Section 24.04 of Palm DeseR Municipal Code). The ordinance establishes minimum water-efficient landscape requirements for all new and rehabilitated public and private landscape projects. The ordinance also requires development project proponents to submit •landscape construction plans, grading,plans, irrigation design plans and landscape maintenance schedules for review and approval by the Public Works Department. In some cases, landscape irrigation audits and soils analyses are required. The City is also in the process of preparing a Parking Lot Tree Ordinance, which will identify specific landscaping requirements for parking lots that will also be responsive to water conservation goals. The Pu lic Works Department will be responsible for reviewing proposed parking lot landscaping plans for their conformance with this ordinance. The City also complies with State law which, since 1992, has mandated the installation of low-flush toilets and low-flow showerheads and faucets in new construction. The Coachella Valley Water District has been instrumental in developing and implementing regional water conservation programs. CVWD offers water audits to farms, golf courses and homeowner's associations in an effort to identify wasteful water usage and improve efficiency. It also reviews III-92 221 ater Quality/Resources Mitigation Measures TN/City of Palm Desert Draft General Plan EIR 5ection III—Existing Conditions,Impacts and Mitigation Measures lans for ma'or housi nd commercial develo ments and off a wlandscapepngaperslandscpe orkshops and other educational programs to homeowners associations and students. CVWD maintains two xeriscape gardens to demonstrate the effective use of native plants and efficient irrigation systems. The treatment and use of reclaimed and recycled water has further reduced the adverse impacts of development on groundwater resources. General Mitigation Measures Groundwater subbasins do not respect jurisdictional boundaries, and the threat of groundwater depletion or contaminatian must be viewed from both a regional and local perspective. Effective storm water management helps to protect groundwater quality, and protection of the region's major mountain watersheds will help assure and optimize long-term natural recharge to the Whitewater River and other groundwater repositories. The conservation and wise use of water resources will continue to be a central theme of community development planning in Southern California. The City of Palm Desert has developed policies and programs that encourage ancUor require water-efficient landscaping and irrigation design, as well as water-conserving home appliances and fixtures. The City plays an important rale in the long-term protection of this essential, finite and valuable resource. The goals, policies and programs of the proposed Palm Desert General Plan update aim to provide and maintain a dependable supply of safe, high-quality domestic water to meet the needs of all segments of the General Plan study area. The following mitigation measures shall be implemented to reduce potential impacts to water resources, associated with the implementation of the proposed General Plan, to less than significant levels. A. The City shall continue to implement it's Water Ef cient Landscape Ordinance to optimize conservation and comply with State Assembly Bill 325 (AB 325), by requiring the use of native and other drought-tolerant planting materials and efficient irrigation systems. B. The City shall coordinate and cooperate with the Coachella Valley Water District to expand and strengthen educationaUpublic relations programs regarding the importance of water conservation and water-efficient landscaping. C. The City shall require the use of water conserving appliances and fixtures such as low-flush toilets, and low-flow showerheads and faucets, and require the application of water-con5erving technologies in conformance with Section 17921.3 of the Health and Safety Code, Title 20, California Administrative Code Section 1601(b), and applicable sections of Title 24 af the State Code in all new developments. D• The City shall support CVWD's continuation and expansion of groundwater recharge efforts and use of tertiary treated wastewater as a means of reducing demand for groundwater resources. E• The City shall coordinate with the CVWD regarding the continued use and future expansion of tertiary treated wastewater treatment and distribution facilities to serve existing and new development projects in the City. III-93 222 Biolagical Resources Egisting Conditions TN/City of Palm Desert Draft General Plan EIIt Section III—Existing Conditions,Impacts and Mitigation Measures F. The City shall consult and coordinate with CVWD regarding the expansion and funding of sewer service to unconnected areas, and consider approaches and mechanisms that facilitate financing and construction of these facilities. G. The City shall require that all existing and new development be connected to the sewage treatment system of the Coachella Valley Water District. H. The City shall establish and enforce regulations and guidelines for the development and maintenance of project-speci c on-site retention/detention basins, which implement the NPDES program, enhance groundwater recharge, complement regional flood control facilities, and address applicable community design policies. I.The City shall evaluate all proposed land use and development plans for their potential to create groundwater contamination hazards from point and non-point sources, and shall confer with other appropriate agencies, as necessary, to assure adequate review. J.The City shall actively encourage and shall participate in the development of water management and conservation strategies, coordinating with CVAG and its member jurisdictions, the Coachella Valley Water District, Desert Water Agency and Mission Springs Water District on water supply and conservation programs. Mitigation Monitoring/Reporting Program A. All development proposals shall be reviewed by the Community Development Department and City Engineer to assess potential adverse impacts on water quality and quantity. All developments shall be required to mitigate any significant impacts. Responsible Parties: Community Development Department, City Engineer, Developers, Coachella Valley Water District,Myoma Dunes Mutual Water Company. B . The Coachella Valley Water District and Myoma Dunes Mutual Water Company shall coordinate and cooperate with local, state and federal agencies to assure the protection of groundwater aquifer from excessive extraction. Responsible Parties: Coachella Valley Water District,Myoma Dunes Mutual Water District F. Biological Resources 1. Existing Conditions The biological resources within and surrounding the City of Palm Desert were assessed in a comprehensive study prepared for the Palm Desert General Plan Update.19 Preparation of the said biological resources study involved literature review which included the California Natural Diversity Data Base (CNDDB), the Coachella Valley fringe-toed lizard Habitat Conservation Plan, Administrative Draft Coachella Valley Multi-Species Habitat Conservation Plan (MSHCP}, botanical and wildlife 19 Pa1m Desert General Plan U ate Biolo ical Re o " re ared by Dr.Lawrence F. LaPr,June 29,2001.P d , g P k P P III-94 223 Biological Resources Project Impacts TN/City of Palm Desert Draft General Plan EIIt Section III—Existing Conditions,Impacts and Mitigation Measures The goals of the Plan include standardized mitigation and compensation measures for species of concern on a regional basis, and meeting the requirements of federal and state protection laws for endangered species. Adoption of the MSCHP is anticipated to limit the need for individual project review of the potential effects of development activities on species of concern. 2.Project Impacts Potential Impacts to Plant Communities Grading and development of lands within the General Plan study area could potentially result in the dastruction of entire populations of common and sensitive plant species. Elimination, depletion and modification of natural communities such as sand dunes and sand fields could result in significant impacts to species with extreme limited distribution such as the Coachella Valley milk vetch. Introduction of non-native plant species associated with landscaping could result in native plant species competing for water, nutrients and space. Adverse impacts to Glandular ditaxis plant species could occur with development projects at the base of the Santa Rosa Mountains. Potential Impacts to Invertebrates and Reptiles Potential impacts to invertebrates and reptiles are associated with continued urbanization in the General Plan study area. The Coachella Valley fringe-toed lizard, flat-tailed horned lizard, and the Coachella giant sand treader cricket are known to inhabit desert sand dunes and sandy flats. Urban development may lead to disruption, fragmentation and even permanent loss of habitat which will substantially affect individuals or an entire animal population.These species are also subject to impacts from traffic and off- highway vehicles and crushing from grading and construction activities. Potential Impacts to Birds Increased urbanization will result in significant impacts to both common and sensitive bird species in the General Plan study area. Bird species are susceptible to domestic pet predation, shooting and capture by humans and electrocution from high voltage power lines. Disturbances to breeding seasons, ingestion of pesticides which causes the thinning of egg shells, and introduction of parasites contribute to the decline of bird population. Habitat for the Burrowing Owl is destroyed or becomes fragmented when development occurs in lands containing sand dunes and sand fields. Bird species that inhabit cliffs and hilly or mountainous teirain are subject to impacts associated with development within or adjacent to the slopes of the Santa Rosa Mountains. Flood control could affect migratory riparian birds such as the Summer Tanager, Yellow Warbler,Least Bell's Vireo and Yellow-Breasted Chat. Potential Impacts to Mammals Development activities include the clearing of lands of all vegetation and wildlife. The General Plan study area supports a diverse range common and sensitive mammals which are subject to adverse impacts resulting from urbanization of the surrounding environment. Studies have supported that habitat - encroachment on the hillsides of the Santa Rosa Mountains has already resulted in bighorn sheep acquiring food and water from project developments. Animal and plant species inhabiting the Santa Rosa Mountains are also susceptible to human disturbances including shooting,capture or collection. The loss of sand dunes and sand field habitats will affect the Palm Springs Pocket Mouse and the Palm Springs Round-tailed Ground Squirrel. Small mammals become predatory targets for domestic pets and off-road vehicles and highway vehicles also contribute to the decline of small mammal population. III-109 224 Biological Resources Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section TII-Existing Conditions,Impacts and Mitigation Measures Landscaping of project development may include plants that are toxic to mammals through contact or ingestion. 3. Mitigation Measures A. The City shall continue to support and participate in the development of the Coachella Valley Muld-3pecies Habitat Conservation Plan. B. The City shall designate all mountainous areas of the Santa Rosa Mountains, generally following the toe of slope, as Open Space for the protecdon of bighorn sheep and other species occurring in these habitats. C. Undeveloped lands that have not been graded, cleared or farmed at the base of the Santa Rosa Mountains should be surveyed at the appropriate season for the presence of Glandular Ditaxis and the desert tortoise. D. The City shall not require fringe-toed lizard surveys for proposed projects on sand sheets, dunes and hummocks within the boundaries of the Coachella Valley fringe-toed lizard Habitat Conservation Plan. The payment of the mitigation fee of$600 per acre will satisfy requirements of the federal Habitat Conservation Plan. E. Proposed projects within sand deposits throughout the northern General Plan study area should be surveyed at the appropriate season for potential presence of blowsand endemics, including the flat-tailed horned lizard, giant sand-treader cricket, and the Coachella Valley milk vetch. F. The City should require surveys for the gray vireo during the spring nesting season to evaluate potential impacts to this restricted-range bird species. Surveys for the dotted blue should also be required for evaluation of discretionary permits. Surveys for these particular bird species are applicable to development proposals within Section 36,T6S, R6E. G. Developments such as country clubs should be encouraged to establish grove plantings of untrimmed palm trees, which could provide roost sites for the southern yellow bat. H. Biological surveys for bats should be performed on projects involving reconstruction of bridges to deternune if significant roost are present. I. . The City should require water conservation and recycling for the Royal Camzo, Pinyon Crest, and Chapman Ranch areas, in order to ensure adequate water supply for the endangered desert slender salamander. J.The Cit should consider the re uirement that a barrier be constructed around the erimeter ofYQp any new project where the toe of slope of the Santa Rosa Mountains meets the valley floor. This would protect bighom sheep and prevent additional habituation and reliance on food and water from developed areas. Informal consultation or review by the U.S. Fish and Wildlife Service and the California Department of Fish and Game should be completed prior to imposition of this III-110 225 Biological Resources Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures recommendation. This barrier is one of the recommended conservation actions in the bighorn sheep recovery plan. K. The City shall encourage and cooperate in the establishment of multiple use corridors that use drainage channels and utility easements to provide wildlife corridors and public access interconnections between open space areas. L. The City shall prepare and maintain a comprehensive list of plant materials, which shall include native and non-native, drought tolerant trees, shrubs and groundcover that complement the local environment. A list of prohibited plant materials shall also be prepared. Mitigation Monitoring/Reporting Program A. The City sha11 review information database and mapping system of sensitive plants, animals and habitats occurring within the General Plan study area, which shall be accurately and regularly updated. Responsible Parties: Community Development Department, GIS Staff B. The Initial Study review process will be utilized to assess potential impacts of development projects on biological resources. Impacts shall be clearly documented and mitigation measures recommended where appropriate. Responsible Parties: Community Development Department, DeveloperJConsulting Biologist C. The City shall assure that all required biological resource mitigation actions, including but not limited to off-site mitigations and/or the payment of impact fees are satisfied, prior to issuance of building permits. Responsible Parties: Community Development Department,Developer/Consulting Biologist D. Inspection during development and grading shall monitor compliance with grading limits, and assure the preservation and incorporation of native and other appropriate desert landscape I materials into all areas of the project according to the approved landscape plan. Responsible Parties: Community Development Department,DeveloperlConsulting Biologist III-111 226 Cultural Resources Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures C. Has a special or particular quality such as oldest, best example, largest, or last surviving exainple of its kind; D. Is at least 100 years old and possesses substantial stratigraphic integrity; or, E. Involves important research questions that historical research has shown can be answered only with archaeological methods. Based on the findings of the cultural resources study for the proposed General Plan update, the Palm Desert General Plan study area includes lands of high sensitivity for prehistoric and archaeological artifacts, as well as historic structures or historic-period archaeological remains. IThe study identifies that areas of high sensitivity for prehistoric and archaeologicai remains occur in the various canyons in the Santa Rosa Mountains and Indio Hills and the alluvial fans at the canyon mouths, i which would have provided the Native populations access to mountain and desert resources, as well as water sources in the canyons. However, it should be noted that the proposed General Plan Update designates the majority of these lands for conservation, and limited lands designated for development Iare assigned very low densities. Areas particularly sensitive for historic structures or historic-period archaeological remains dating before 1940 are located along the Colorado River Aqueduct, between the Tndio Hills and the Southern Pacific Railroad, and around the original community of Palm Village. Historic structures from the late 1940s and early 1950s most likely occur in the urban core of the city, along with outlying communities such as Thousand Palms, Cahuilla Hills and the Sky Valley area. As mentioned above, the City continues to participate in the preservation of cultural resources by implementing Historic Preservation I Ordinance 401 and by establishing the Historic Site Preservation Boazd. The Historical Society of Palm Desert has also played an important role in the City's historic preservation efforts. Future development projects in the General Plan study area could potentially result in direct and/or indirect disturbance or destruction of sensitive archaeological and historic resources. Site surveys should be conducted on all future development projects, if deemed necessary, to determine the presence and significance of archaeological and historic resources. 3.Mitigation Measures Continued development and urbanization of the proposed Palm Desert General Plan planning area will decrease the opportunities for documenting and preserving archaeological and historic sites and artifacts. _: The City of Palm Desert has the responsibility to assure that every reasonable effort is made to manage cultural resources properly and creatively within its jurisdiction. The California Environmental Quality Act (CEQA) identifies the manner in which the City must review and address issues related to archaeological and historic resources. Projects involving a federal agency, federal funding or other federal assistance must conform to Section 106 of the National Historic Preservation Act (NHPA) of 1966. In addition, the following mitigation measures are recommended to reduce potential impacts to cultural resources to less than significant levels. III-119 227 Cu1•tural Resources Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Tmpacts and Mitigation Measures A. All development or land use proposals, which have the potential to disturb or destroy sensitive cultural resources, shall be evaluated by a qualified professional and, if necessary, comprehensive Phase I studies and appropriate mitigation measures shall be incorporated into project approvals. B. The City should establish a transmittal system with the Eastern Information Center (EIC) in which the City may send a location map to the EIC for a transmittal-level records search when a development proposal is in its initial review phase. The transmittal shall identify the presence or absence of known cultural resources andlor previousiy performed studies in and near the project area. The EIC shall also offer recommendations regarding the need for additional studies, where necessary. hi toricC. The City shall expand and enhance its histonc preservat on efforts by preparing a s preservation plan and by considering participation in the Certified Local Govemment program. D. The City shall also incorporate historic preservation concerns into its zoning ordinance. E. The City shall establish and maintain an inventory of archaeological and historical resources within its jurisdiction, including those identified by the Eastern Information Center (EIC) at the University of California,Riverside and in focused cultural resources studies. F. The City shall protect sensitive archaeological and historic resources from vandalism and illegal collection to the greatest extent possible. The City shall maintain mapping and similar information, which identifies specific locations of sensitive cultural resources, in a confidential manner, and access to such information shall be provided only to those with appropriate professional or organizational ties. G. The City shall support the listing of eligible structures or sites as potential historic landmarks and their inclusion in the National Register of Historic Place. The City will consult and cooperate with the Palm Desert Historical Society and other appropriate cultural organizations in identifying and prioritizing sites which are eligible for listing as a historic landmark or inclusion in the National Register of Historic Places. H. The City shall develop an applicadon process for City-sponsored incentives to maintain and enhance significant buildings and sites, and provide property owners with information and guidance on eligibility requirements. J.Iri the event that archaeological resvurces are unexpectedly discovered during construction, the City shall require that development cease, and a professional archaeologist shall be employed to examine and document the site to determine subsequent activities and appropriate mitigation measures. III-120 228 Air Quality Ezisting Conditions TNICity of Palm Desert DraR General Plan EIR Section III-Existing Conditions,Impacts and Mitigation Measures Mitigatiot Monitoring/Reporting Program A, Potential impacts of development projects on cultural resources shall be evaluated through the Initial Study review process. Impacts shall be clearly documented and mitigation measures recommended where appropriate. Responsible Parties: Community Development Department, DeveloperlConsulting Archaeologist, UC-Riverside Eastern Information Center. B. City Staff shall review cultural resources reference materials and update City records and I inventories on an annual basis to assure timely and adequate maintenance of the database. Responsible Parties: Community Development Department, and UC-Riverside Eastern Information Center. H. Air Quality IThe air quality of a particular locale is a significant factor to public health and welfare. Over the past two decades, air quality improvements have occurred in Southern California and the Coachella Valley. However, the region continues to experience significant air pollution problems, particularly those associated with suspended particulates. The City of Palrn Desert and other surrounding communities demonstrate their cominitment to improving air quality in the region by implementing air quality management programs. 1.E cisting Conditions The Coachella Valley is located within a meteorologically and geographically unique area. The surrounding mountains shield the valley from coastal influences from the west, and create a hot, low- lying desert environment. The valley is also prone to air inversions, in which a layer of stagnant air is trapped near the ground where it is further loaded with pollutants. This process, when combined with chemical aerosols and other pollutants emitted by automobiles, fumaces and other sources,can result in considerable haziness and increased pollutant levels. The Coachella Valley is also subject to strong and sustained winds that pick up and transport large quantities of sand and dust, depositing these materials on buildings, fabrics and automobiles, thereby reducing visibility and damaging property. Extensive wind-borne soil can dirty streets, pit windshields and damage landscaping. Dust on vegetation can interfere with plant respiration and stunt growth. The adv.erse health effects in humans can be severe and include reduced lung capacity and functioning. Air Quality Management and Regulation Air quality management in the proposed General Plan study area is governed by federal and state air quality standards and regulations pertaining to a variety of air pollutants. The U.S. Environmental Protection Agency (EPA) implements the federal Clean Air Act (CAA), which is intended to ensure that all Americans have the basic health and environmental protections with regard to air quality. The CAA establishes minimum air pollution standards, but allows states to enact and III-l21 229 Air Quality Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures project emissions should be compared to the projected future baseline (without mitigation) for the.years corresponding to project phasing and/or buildout year,i3 The projected future baseline for the Coachella Valley will be affected less by future growth in the Palm Desert General Plan area and more from I growth in other valley communities with large amounts of affordable land available for development, including the aforementioned cities of Desert Hot Springs, La Quinta, Indio, Coachella, and the unincotporated areas. I 3.Mitigation Measures The South Coast Air Quality Management District, CVAG and the City of Palm Desert share responsibility for monitoring air pollutant levels and regulating air pollution sources. Preservation of the environment and protection of the general public from harmful air pollutants involves monitoring and I mitigating activities, which contribute to the degradation of local and regional air quality. i A range of mitigation measures developed by federal, state and local agencies can be put into effect rthroughout the life of the General Plan to reduce pollutant emissions associated with General Plan buildout. The ongoing implementation and updating af California Title 24 Building Codes, combined with more efficient use of energy, can contribute to the reduction of impacts of pollutant emissions from Iheating, cooling, power plants and the consumption of natural gas. Alternative methods of electrical power generation have and will continue to replace the need for additional fossil fuel-based generating Icapacity. In the State of California automobile smog checks aze mandatory and are designed to ensure vehicle compliance with existing emissions standards. It is feasible that improvements to combustion Itechnology and an overall decline in air pollutant will occur in the future. Cleaner fuels and more efficient transportation vehicles are expected to continue to evolve. Impacts to air quality associated with the adoption and implementation of the proposed General Plan are potentially significant if left unmitigated. Within the context of the anticipated future baseline, I mitigation measures set forth below are provided to reduce General Plan air quality impacts to less than significant levels: I A. The City shall coordinate and cooperate with CVAG and SCAQNID in the ongoing monitoring and management of major pollutants affecdng the City and region, with particular focus on PM,o, and shall provide all required reporting to be ultimately included in SCAQNID's annual report. B. The Cit shall develo and maintain its General Plan Land Use Element to assure that airYP pollution point sources, such as manufacturing facilities, are located at an appropriate distance _ from residential areas and other sensitive land uses and receptors. C. The City shall encourage project developers to develop site plans that integrate buffer zones Ibetween sensitive receptors and point source emitters such as highways and industrial sources. I 3 CEQA Air Quality Handbook,"prepared by South Coast Air Quality Management District,April 1993. III-137 230 Air Quality Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Lnpacts and Mitigation Measures D. The City shall review all development proposals for potential adverse effects on air quality and as appropriate, require detailed air quality analyses and mitigation measures to address any potentially significant impacts. Mitigation measures and dust control plans shall be approved by the City prior to the issuance of grading, construction,demolition or other permits. E. The City shall encourage the incorporation of energy-efficient design measures in site plans, including appropriate site orientation to assure solar access.;and the use of shade and windbreak trees to enhance the use of alternative energy systems and to reduce the need for excessive heating and cooling. F. The City shall develop and maintain a diversified transportation.system that maximizes system efficiencies, minimizes vehicle miles traveled, and reduces the impact of motor vehicles on local air quality. G. The City shall continue to promote the development and use of pedestrian-oriented retail centers, as well as community-wide multi-use trails, dedicated bike lanes, golf cart paths, and other desirable alternatives to motor vehicle traffic. These components shall be integrated and perioclacally updated in the General Plan Circulation Element. H. The City shall implement and coordinate with the SCAQNID and CVAG to assure adequate monitoring of the effectiveness o transportation management p rograms of employers, including use of Sunline and other public transportation, coord.inated carpooling, off-peak shift times, employee fiex-time and other components. As future demand warrants, the City shall promote and support the development of a Park-and-Ride program to decrease existing and future traffic levels within the community. I.The City shall encourage the use of clean alternative energy sources for transportation, heating, cooling and electrical generation, to the greatest extent practical and shall encourage and coordinate with its franchise service providers and other public and private service providers to do same. J. The City shall continue to implement the Fugitive Dust Control Ordinance applicable to construction, grading and demolidon activides, on-going land uses, and off-road vehicle use to reduce PM,o emissions to the greatest extent practical. K. The City shall continue to provide an effective street sweeping program that combats the cumulative impacts of blowsand, transportation-related dust generation, and nuisance dust that result from natural windstorm events. L. The City shall require the implementation of air qual ty control measures idendfied in the most current Coachella Valley PMIo State Implementation Plan. M. A PMIo Management Plan for construction operations shall be submitted with all development proposals.The plan shall include dust management controls such as: watering the site and equipment morning and evening III-138 231 Air Quality Mitigation Measures TTT/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures spreading soil binders on disturbed areas, unpaved roads, and parking areas operating street-sweepers on paved roads adjacent to site re-establishing ground cover on construction site through seeding and watering paving construction access roads, as appropriate N. To minimize construction equipment emissions, the City shall assure that developers and contractors shall, as appropriate, implement the following: wash off trucks leaving the site require trucks to maintain two-feet of freeboard properly tune and maintain construction equipment use low sulphur fuel for construction equipment O . To reduce construction-related traffic congestion, developers and contractors shall, as appropriate, implement the following: encourage rideshare incentives for construction personnel configure construction parking to minimize traffic interference minimize obstruction of through-traffic lanes provide a flag person to ensure safety at construction sites, as necessary schedule operations affecting roadways for off-peak hours, as practical P. To minimize indirect-source emissions, developers may also: implement energy conservation measures beyond state and local requirements install low-polluting and high-efficiency appliances install solar water heaters, to the greatest extent feasible install energy-efficient street,landscape and pazking lot lighting include energy costs and design efficiency into capital expenditure analyses landscape with native and other appropriate drought-resistant species to reduce water consumption and to provide passive solar bene ts Q. To minimize building energy requirements, developers shall implement the following: assure the thermal integrity of buildings and, as appropriate, reduce the thermal load with automated time clock or occupant sensors use eff'icient window glazing, wall insulation and ventilation methods use most efficient heating and other appliances, such as water heaters cooking equipment, refrigerators,furnaces and boiYer units incotporate appropriate passive solar design and solar heaters use devices that minimize the combustion of fossil fuels capture waste heat and re-employ this heat,to the greatest extent practicable Mitigation Monitoring/Reporting Program A• The City Community Development Department shall coordinate with South Coast Air Quality Management District and CVAG to facilitate the maintenance and expansion of the Coachella Valley's existing air quality monitoring equipment. Responsible Parties: Community Development Department, SCAQNID, CVAG III-139 232 Air Quality Mitigation Measures 1N/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures B. The appropriate code enforcement division shall record, consolidate and retain all complaints it receives concerning air quality degradation from construction sites, vehicle emissions, industrial generators, and other sources of air quality impacts. A report on air quality complaints and identified presblems shall be provided in the annual review of the General Plan. In addition, development may be temporarily halted until inadequate controls or unacceptable conditions are corrected to the satisfaction of the City and/or SCAQMD. Responsible Parties: Community Development Department, SCAQMD, CVAG C. The City Public Warks Department shall monitor the performance of the City's roadways system, identify areas of congestion and inefficient traffic movement, and develop recommendations to enhance the performance of all components of the City transportation system. Responsible Parties: City Public Works Department, SCAQNID, CVAG I.Noise The noise environment can have a signi cant influence on the health and comfort of a community. Assessment of the noise environment in the General Plan study area involved the preparation of a noise study by Urban Crossroads. The study examines the existing noise environment in the General Plan study area and projects the future noise impacts associated with General Plan buildout. This study is included in its entirety in Appendix E of this document. 1.Existing Conditions Noise is simply defined as unwanted sound. Excessive noise affects physical health, psychological well being, social cohesion, property values and economic productivity. The effects of noise on people include subjective effects, such as annoyance and nuisance; interference with activities such as conversation and sleep; and psychological effects, ranging from startle to hearing loss. Noise generators include components of urbanization such as construction equipment and activities, motor vehicles, air and rail traffic,mechanical equipment, household appliances and other sources. Generally, the City of Palm Desert enjoys a quiet noise environment, with existing community noise being dominated primarily by constant motor vehicle traffic on highways and major arterials. The noise environment of the General Plan study area is also affected by local airport operations. Given its location, the Bermuda Dunes Airport has the greatest impact in the General Plan study area. Commercial aviation at the Palm Springs Regional Airport occasionally has an intrusive but intermittent impact on .. the community's noise environment. However, current airport master plan improvements are projected to further reduce airport noise exposure in Palm Desert. Freight rail service along the Union Pacific Railroad lines located immediately south of and parallel to I- 10 are also responsible for generating substantial noise levels in the community. Qther community noise generators include industrial operations, construction activities, special event noise, live music, home I III-140 233 Noise Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions, Impacts and Mitigation Measures Commercial and Industrial Noise Commercial and industrial activities generate noise resulting from loading and docking operations, truck operations, and mechanical equipment installed both outside and inside buildings. Sensitive noise receptors adjacent to commercial and industrial land uses are anticipated to experience the significant impacts of noise associated with commercial and industrial activities. The review of commercial and industrial projects, particularly those in close proximity to sensitive receptors, for land use and noise compatibility issues is critical as the General Plan study area continues to expand. The use of new technologies, combined with the design requirements imposed by the City, including screening and enclosures for stationary equipment, will help to mitigate potential impacts associated with General Plan buildout. Construction Noise Construction noise constitutes a short-term impact on adjacent land uses. However, significant noise impacts could result from construction activities such as heavy construction equipment, that can generate noise levels ranging from 68 dBA to 100 dBA when measured at 50 feet from the noise source. 3.Mitigation Measures Continued growth and development in the General Plan study area will result in significant impacts associated with noise. Strategic land use and transportation planning, project design mitigation, and acoustical barriers contribute highly to the management of the City's noise environment. Noise Ordinance In 1985, the City of Palm Desert adopted Title 9, Chapter 9.24 of its Municipal Code, which established comrnunity-wide noise standards to emphasize the value of an acceptable noise environment. The City Noise Control Ordinance provides regulations for noise measurement and monitoring and cites special provisions of, and exemptions to, the ordinance. It is intended to regulate excessive noise from existing uses and associated activities, and to serve as a reference guide for identifying other pertinent noise regulations. The Palm Desert Noise Control Ordinance provides definitions of key terms and establishes exterior noise level standards on a time-of-day basis along with adjustments for intensity and duration. According to the City Noise Ordinance, the exterior noise one-hour standard for residential land uses is 55 dB between 7 a.m. to 10 p.m. and 45 dB between 10 p.m. to 7 a.m. Violations of the Noise Control Ordinance are considered as a nuisance and subject to the procedures, remedies and penalties set forth in the City's Violations/Infractions Ordinance. Noise Barriers Because of the linear qualities of noise, barriers, such as walls, can be effective in reducing its impacts. _- It is important to note, however, that noise barriers must be of sufficient height and length to obstruct the noise source entirely (generally in Palm Desert this noise source will be the City's roadways). Reductions of 10 to 15 dB can be achieved with effective, solid walls which block the line of site from a home to the adjacent roadway. The noise standards in the General Plan are intended to guide the location of future noise generators and sensitive land uses. The following mitigation measures shall be implemented to reduce impacts associated with noise to less than significant level: III-I51 234 Noise Mitigation Measures TN/City of Palm Desert Draft General Plan EIR i Section III—Existing Conditions,Impacts and Mitigation Measures Categorical Mitigation Measures The following discussion describes the specific mitigation measures, which are stated on a categorical basis to address identified impacts. Construction Noise A. The City shall restrict grading and construction activities that may affect residential neighborhoods and other sensitive land uses to specified days of the week and times of the day. B. All construction equipment operating in the General Plan study area shall be fitted with well maintained functional mufflers to limit noise emissions. C. To the greatest extent feasible, earth moving and hauling routes shall be located away from nearby existing residences. D. Any portion of development in the General Plan study area involving blasting or pile driving operations shall have a focused acoustical study conducted, to establish the level and duration of off-site noise and vibration impacts and appropriate mitigation measures. On-Site Stationary Noise Sources E. The design, selection and placement of the mechanical equipment for various buildings within the General Plan study area shall include consideration of the potential noise impact on nearby { residences, both within the any development and in the surrounding community. 1 F.Silencers and/or barriers shall be provided where necessary at outdoor equipment, such as cooling towers, air cooled condensers and refrigeration compressors/condenser units, and at the air intake and discharge openings for building ventilation systems. G. Appropriate sound barriers shall be provided surrounding any and all public facilities capable of generating disturbing levels of noise, such as water pumping stations. I Off-Site Traffic Noise H. Potential noise impacts shall be considered in the final site plans for all proposed projects within the General Plan study area. Factors to be considered shall include the strategic arrangement of housing to provide necessary shielding of outdoor living areas, the incorporation of additional setbacks from roadways, and/or the construction of additional noise barriers. I.Project designs shall be required to include measures which assure that interior noise levels for residential development do not exceed 45 CNEL, as required by Title 25, California Noise Insulation Standards. J.Land uses that are compatible with higher noise levels shall be located adjacent to the City's major arterial roads and highways, including the Interstate-10 cotridor, to maximize noise related land use compatibility. I-152 235 Noise Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures K. The City shall require the preparation of a noise impact analysis for all commercial and industrial projects which are to be located adjacent to residential land uses or other sensitive land use designations. The required noise impact analysis shall evaluate potential impacts of the project and provide for adequate mitigation measures to assure that City standards for residential and/or other sensitive land uses are maintained. L. The City shall encourage a City-wide circulation pattern v,hich places primary traffic loads on major arterials and preserves local neighborhood noise environments by limiting roadways to local traffic to the greatest extent practical. Mitigation Monitoring/Reporting Program A. Establish and periodically update an inventory of existing significant noise sources and incompatible azeas, and develop procedures to reduce the noise effects on these areas, where economically and aesthetically feasible. IResponsible Parties: Community Development Department I B. Periodically review land use patterns and the community noise environment, and amend the land use map as appropriate to assure reasonable and use/noise compatibility. Responsible Parties: Community Development Department, Planning Commission, City Council C. In areas subject to potentially significant noise impacts, the City shall require new development I to monitor and document compliance with all applicable noise level limits. Responsible Parties: Community Development Department Pre-Construction D. During project-specific site planning and building design, ensure acoustical analysis takes into consideration the following: I selection and placement of inechanical equipment for all buildings, shielding and buffering of inechanical equipment for all buildings, strategic location of attached residences to provide shielding of outdoor living spaces, theme wall is constructed to noise barrier specifications, designate acceptable truck/construction equipment route(s), as appropriate, construction drawings shall include exact acoustical specifications for window glass in buildings with unshielded first and second floor windows which experience noise exposures above CNEL 65 and, verify that design plans of specific projects within the General Plan study area comply _- with State Code requirements of unit-to-unit airborne sound isolation Responsible Parties: Developer, General Contractor and City Community Development Department III-153 236 Noise Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Lnpacts and Mitigation Measures Durin,g Construction E. Ensure functional mufflers on all construction equipment. Responsible Parties: Developer, General Contractor, Building Department F. Ensure that designated truck/construction equipment routes are being utilized. Responsible Parties: General and Grading Contractor, Building Department G. Ensure construction ui ment o erates during the hours set in the Noise Ordinance, except inlPP emergencies. Responsible Parties: General Contractor, Building Department J. Visual Resources 1. Euisting Conditions Regional Setting The City of Palm Desert and the Coachella Valley benefit from significant viewsheds created by the area's geology. On the north, the Valley is bordered by the San Bernardino and Little San Bernardino Mountains, as well as the Indio Hills. Much of this land, which borders the General Plan study azea, has been protected as open space in perpetuity by the creation of the Joshua Tree National Monument. The Indio Hills are south of the Little San Bernardino Mountains. Edom Hill rises to an elevation of 1,614 feet. The Indio Hills are upgradient from the planning area, and can be seen from many parts of the General Plan study area.Edom Hill, located easterly of the planning area, rises to an elevation of just over 1,600 feet above sea level. The San Jacinto Mountains comprise the western boundary of the Coachella Valley, along witn the significant peak of San Gorgonio. The San Jacinto Mountains rise sharply from the Valley floor, and represent the steepest gradient in North America. The San Jacinto range, although clearly visible from most parts of the City, is not immediately adjacent to the General Plan study area. The General Plan study area is bordered on the south by the Santa Rosa Mountains. The highest peaks in this range include Toro Peak, at 8,717 feet above sea level, and Santa Rosa Peak at 8,000 feet above sea level. Through the City, Highway 111 follows roughly the toe of slope of this range, which provides a'stunning backdrop to the City's built environment. The San Jacinto and Santa Rosa Mountains were designated a National Monument by Congress in 2000, - ensuring their preservation as a valuable scenic resource for the long term. Local Setting The majority of the City and planning area are located on the Valley floor, at elevations close to sea level. Only the southern part of the City, located east and west of Highway 74, occurs at more significant elevations, in the Santa Rosa mountains. Development in south Palm Desert, from EI Paseo to Bighom Country Club, occurs on the alluvial fan which falls from the Santa Rosa foothills to the III-154 M237 i . Visual Resources Proj ect Impacts T'N/City of Palm Desert Draft General Plan EIR Section III-Existing Conditions,Impacts and Mitigation Measures Valley floor. The balance of the City and planning area, further south, is designated for open space land uses, and will not experience development. The development which has occurred in the City and in adjacent communities abuts the Santa Rosa mountains, and has created a striking contrast visible from most of the Valley, and therefore its most significant visual resource. In the northern portion of the study area, development to date has been limited beyond Interstate 10. This area is characteristic of the wind-blown sand dunes created by climatic conditions in the area, and has limited visual value. 2. Project Impacts Buildout of the Preferred Alternative is expected to result in the continuation of development as currently occurs in the City. The generally suburban and resort-oriented nature of residential and commercial development will not change significantly with buildout of the General Plan. The General Plan also does not propose to significantly change the generally low-rise, and thus low density, types of structures which have been built in the past. All development, however, will continue to change the appearance of the Valley floor, and has the potential to significantly impact the City's scenic viewsheds. This is particularly true in areas of the study area which have been traditionally under- or undeveloped, in the area north of Interstate 10 to the San Bernardino Mountains. Careful consideration of the character of this area is important to ts future integration into the built env ronment of the City. The proposed General Plan includes a number of policies and programs, located in the Community Design Element, which ensure that the construction of all types of structures in the future will be sensitive to scenic viewsheds, sunounding development, and the City's chazacter. The Plan either regulates development, or requires that the zoning ordinance and municipal code be amended to include standards for development. The northern portion of the study area is also particularly susceptible to the impacts associated with light and glare. Since this area is currently under-developed, night time lighting is limited, and .generally consists primarily of car headlights and outdoor security lighting. As this area develops, the night time lighting levels are likely to increase, and change its visual character. The General Plan includes provisions for limited lighting, and policies and programs provided in the Community Design Element specifically require that outdoor lighting be sensitive to dark sky principles. The proposed General Plan Land Use Map designates the Santa Rosa Mountains as Open Space. This designation significantly restricts the potential for development. These measures will limit development - to the valley floor and preserve the high visual quality of the Santa Rosa Mountains. 3. Mitigation Measures The following mitigation measures further assure that buildout of the General Plan will have limited impacts n the City's visual resources. i III-I55 I 238 Visual Resources Mitigation Measures TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures A. Overhead utility lines shall be undergrounded to the greatest extent possible through the establishment of an undergrounding program and guidelines. B. The City shall coordinate with utility providers, including but not limited to Southern California Edison, the Imperial Irrigation District, The Gas Company, and Verizon to assure that utility infrastructure, including water wells, substations, and switchinglcontrol facilities are effectively screened to preserve scenic viewsheds and limit visual clutt r. C. Outdoor lighting shall be limited to the minimum height, number of fixtures, and intensity - needed to provide sufficient security and identification in each development, making every reasonable effort to protect the community's night skies. D. Signage shall be limited to the locations, sizes, and maintenance requirements necessary to provide functional identification. E. Commercial and mixed use development projects shall incorporate safe, convenient vehicular and pedestrian circulation, screened outdoor storage/loading and other unsightly areas, protected and enhanced outdoor seating areas, appropriate lighting levels, limited signage, and landscaping designs that preserve and enhance visual resources. F. Commercial and mixed use development shall be designed with particular attention to limiting the lighting impacts on adjacent residential neighborhoods. G. All grading and development proposed within scenic viewsheds, including hillsides, shall be regulated to minimize adverse impacts to these viewsheds. Mitigation Monitoring/Reporting Program A. The City shall maintain and amend the Municipal Code as necessary to assure the design parameters to which public and private development projects must conform are clearly defined. Responsibie Parties: Community Development Department,Planning Commission, City Council. K. Public Services and Facilities Schools 1. Existing Conditions Public education services and facilities are provided to the General Plan study area by two school districts: Desert Sands Unified School District (DSUSD) and Palm Springs Unified School District PSUSD). DSUSD serves most of the developed portion of the study area, including lands south of Frank Sinatra Drive, and lands located north of Interstate-10 and east of Washington Street. The PSUSD district includes the remainder of the study area, including northwestern Palm Desert and the Thousand Palms and Sky Valley communities. III-156 239 Public Services and FaciLities Schools TNlCity of Palm Desert Draft General Plan EIR Section IIl—Existing Conditions,Impacts and Mitigation Measures 3. Mitigation Measures A. Developers will continue to be assessed the statutory school mitigation fees for residential and commercial development. B: In the event that developers in the planning area attemp't to utilize Mello-Roos or other types of public facilities financing districts, both school districts shall be included in discussions to determine whether funding streams may be used for school facilities. The Districts have the following alternatives available to mitigate significant impacts to area schools: Lerok F. Greene State School Building Lease-Purchase Law - This act is an agreement between school districts and the state to provide for the construction, reconstruction, or replacement of school facilities by the State Allocation Board. First priority for future state funding will go to districts with 1) a substantial enrollment in year- round schools, 2) the ability to raise 50 percent of project costs, and 3) the opening of a new facility as a year-round school. Lease-Purchase Arrangements - Many districts may enter into lease-purchase arrangements with private builders of portable classrooms (Section 39240 and 39290 of the State Education Code). This method can also be used to finance capital outlay. An additional advantage of lease-purchase agreements is that they offer the benefits of long-term debt financing without obtaining voter approval of special taxes or benefit assessments. Mello-Roos Communitv Facilities Act - Provisions for this funding option are located in Government Code Section 55311 et. seq. A school district must initiate proceedings to declare itself a community facilities district to benefit from this Act. A community facilities district is defined as a governmental entity established to cacry out specific activities within specifically defined boundaries. Such a district may engage in the purchase, construction or rehabilitation of any real or tangible property with an estimated useful life of five years or longer. Mitigation Monitoring!Reporting Program A. The City of Palm Desert will consult and cooperate with the Desert Sands and Palm Springs Unified School Districts to continue to monitor public schools in the General Plan study area, _ and to determine the extent of overcrowding, security issues, low performance on standardized tests, and other adverse impacts on area schools. Responsible Parties: Community Development Department, City Council, Desert Sands Unified School District, Palm Springs Unified School District IIII-l S9 240 Public Services and Facilities Library TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures Libraries 1.E sting Conditions alm Desert Publi Libr The Palm Desert Public Library is a branch of the Riverside County Library System and is located at 73- 300 Fred Waring Drive. The library encompasses approximately 20,000 square feet of a 40,000 square foot facility, which it shares with the College of the Desert Library. Although their books and resources are physically separated, the two libraries have a reciprocity agreement and also share an online research database and checkout desk. The Palm Desert Public Library contains approximately 75,000 volumes and is staffed by five full-time employees, 15 part-time employees, and approximately 35 volunteers. The library operates a youth story-time program and adult computer classes, and supports the County- wide Literacy Program, which is managed from the Indio Public Library. The Palm Desert Public Library is a multi-agency facility, which is part of the Riverside County Library System. Each year, approximately 2.7% of the City's 1% property tax revenue is paid to Riverside County for basic library operations and services. The City also allocates General Fund revenues to pay for additional library services, which are above and beyond those provided under the County contract. Specifically, these funds cover expenses for three additional hours of operation on Thursdays, a volunteer program and coordinator, special events programs, and a special events coordinator. Colle e of the Desert Library The College of the Desert (COD) opened its on-campus library concurrent with the aforementioned community library in January, 1996. As described above, the library shazes a building and reciprocity agreement with the Palm Desert Public Library. Ali library services are available to COD students and the general public. The COD Library contains more than 50,000 volumes. Other features include a computer lab, local history room, children's story room, community meeting room and seminar rooms. The City is responsible for funding a portion of ongoing maintenance and structural improvements to the library. Thousand Palms Public Library The Thousand Palms Branch of the Riverside County Library is located at 72-715 La Canada Way. The library is staffed by one full-time branch manager, two part-time employees, and eight volunteers. Special community programs include children's story-time, crafts and reading clubs. The County and residents of Thousand Palms aze raising funds and applying for grants with hope of constructing a permanent library facility in about 2005 or 2006. The new facility would be located on a donated parcel of land on Robert Road. 2.Project Impacts The County of Riverside seeks to maintain an unadopted standard of 2 volumes and 0.5 square feet of library space per capita.5 Buildout of the General Plan is anticipated to generate approximately 148,387 5 Gary Christmas,Riverside County Librarian,personal communication March,2000. III-160 241 Public Services and Facilities Police T'N/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures residentsb. Based on this projected population and the County's unadopted level of service standards,the General Plan study area will require about 74,194 square feet of library space and about 296,774 volumes at buildout. It should be noted that, General Plan buildout population is dependent upon actual levels of development in the General Plan study area. 3.Mitigation Measures A. The City and County shall continue to monitor and evaluate the existing usage rate and level of services provided at the libraries in the General Plan study area to determine the need for additional services and facilities. B. The City shall consult and coordinate with Riverside County to determine appropriate mitigation fees necessary to provide adequate library services. Mitigation Monitoring/Reporting Program A. The City and County shall continue to monitor library needs and utilization to provide essential library services to the residents of the General. Plan study area. Responsible Parties: City Manage, County Librarian Police Protection 1.Existing Conditions The City of Palm Desert contracts with the Riverside County Sheriff's Department for police protection services. The City Police Department operates out of the Palm Desert Station located at 73-520 Fred Waring Drive. The Palm Desert Station also functions as the Sheriff's base of operations for the cities of Rancho Mirage and Indian Wells, and unincorporated County lands west of Washington Street, includ ng the Thousand Palms and Sky Valley communities. Lands east of Washington Street, including the Bermuda Dunes community, are served by staff based at the Indio Station of the Riverside County Sheriff's Department. Police protection services are provided to the City on a 24-hour daily basis. The Palm Desert police force comprises a total of 70 sworn officers and provides about 1.75 sworn officers for every 1,000 residents, which is comparable to the regional average and provides an effective level of police protection. The average response Cime for the highest priority emergency calls (code 1) is 4.6 minutes. 2.Project Impacts Adoption and im lementation of the ro osed General Plan could otentiall enerate a buildoutPPPPYg population of approximately 148,387 residents.' The proposed General Plan intends to provide a police- staffing ratio of at least 1.5 sworn officers per 1,000 residents. In order to meet this preferred ratio at 6 Based on exiting and potential new dwelling units associated with proposed Genera{Plan buildout,and 2.A3 persons per household,added to the existing City population of 43,917 and Planning area population of 22,75b. Ibid. li-lbl 242 Public Services and Facilities Fire I TT1/City of Palm Desert Draft General Plan EIR Section III Existing Conditions,Impacts and Mitigation Measures Pro osed Fire Stations The City has begun setting aside funds for a new re station to be constructed in the vicinity of Cook Street and Interstate-10. The station will provide additional fire protection coverage to development in this vicinity, including the Coachella Valley Campus of California State University, San Bernardino CSUSB). It is anticipated that the station would be constructed within the next five years, however the actual construction schedule will depend upon future levels of development. Fire Marshall Services IOne of the most important services provided by the Fire Department to the City is that of the Fire Mazshal, who is responsible for providing project review services for adequate access, building siting and internal circulation for fire and other emergency vehicles, the need for sprinklers and minimum fire flows from hydrants, and other design issues associated with fire protection. The Fire rVlarshal also coordinates department fire inspectors, who inspect each commercial building in the City at least once each year. The Fire Marshal and inspection staff are provided office space at Station 50 in Rancho Mirage and serve the three contract cities. I2.Project Impacts Continued development and population growth in the General Plan study area is anticipated to increase demand for fire protection services. Additional fire protection services will include increase in staf ng, firefighters, fire stations, fire trucks, and rescue vehicles. Increased demand for fire protection services associated with development in rural areas of the General Plan study area will also involve expansion of water mains and the provision of new fire hydrants. Additional fire protection services could result in significant costs to the City. As with police department costs, increases in property and sales tax revenues will provide funding sources for increased service. As the General Plan study area builds out, it I will be necessary to evaluate these impacts to fire protection services. f 3. Mitigation Measures A. The City shall continue to promote close coordination with the Fire Department for the timely expansion of services and facilities. B. The Fire Department shall continue to maintain mutual aid agreements with the cities of Rancho Mirage and Indian Wells for additional fire protection support. C. The Fire Department shall continue to review new development ro osals and assess thePP Department's capacity to provide sufficient fire protection services. This shall include, but is not limited to, review of internal circulation patterns, street names and numbering systems. l D• The City and the Fire Department shall continue to enforce fire codes and other applicable standards and regulations during review of building plans and conducting building inspections. III-165 243 Public Services and Facilities Fire TN/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures E. The siting of industrial facilities which involve storage of hazardous, flammable or explosive materials shall be conducted in a manner that will ensure the highest level of safety in strict conformance with the Uniform Fire Code and other applicable regulations. F. Coordinate with the Coachella Valley Water District and Myoma Dunes Mutual Water Company to assure adequate water supplies and pressure for existing and proposed development. Mitigation Monitoring/Reporting Program A. The Riverside County Fire Department shall inspect all detailed project plans for conformance with all applicable fire protection requirements. Responsible Parties: Riverside County Fire Department Health Care Facilities and Services 1.Existing Conditions In addition to a number of local physicians' offices and urgent care facilities, several large health care facilities are located in the vicinity of the General Plan study area. A discussion of major health care facilities is provided below. The Eisenhower Medical Center on Bob Hope Drive in Rancho Mirage is the closest medical facilit to the subject property. The medical center complex encompasses 98± acres consisting of several facilities, which include the Eisenhower Medical Center, the Annenberg Center for World Health Sciences, the Betty Ford Center for Chemical Dependency, the Dolores Hope Outpatient Care Center and the Barbara Sinatra Children's Center. The medical center currently has 261 beds, an intensive care unit and emergency room. The complex also includes the Community Blood Bank and other office and research buildings. The Andrew Allen Surgical Pavilion is a state-of-the-art medical surgical facility with ten operating rooms. Desert Regional Medical Center is located at 1150 N. Indian Avenue in Palm Springs. It is a private, non-profit hospital that is licensed for 388 beds and has a 24-hour emergency room and Level II Trauma Care facility. The hospital has a Home Health Care department that provides in-home nursing care and household maintenance services. It also includes the Hospice of the Desert Communities, which offers services for the terminally ill. The Comprehensive Cancer Center of the Desert is a department of the Desert Regional Medical Center, which provides services to cancer-diagnosed individuals. John F. Kennedy Memorial Hospital islocated at 47-111 Monroe Street in Indio. In addition to the many -- medical and health services offered at JFK, a 24-hour emergency room and a wide variety of inpatient and outpatient services are also available. The hospital, with its recent building addition, is currently licensed for 162 beds and includes 16 beds in the ICU unit and 24 beds in the medicaUsurgical unit. III-l66 244 Public Services and Facilities Health care TT1/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures 2.Project Impacts Builout of the proposed General Plan is not expected to have any significant adverse impacts on the medical facilities in the area. As independent facilities, Valley hospitals will continue to plan for growth in order to accommodate population increases associated with the implementation of the proposed General Plan. It is expected that all three of the Valley hospitals will expand as needs are identified and that regional health care facilities will be able to adequately service the future population. 3.Mitigation Measures Regional and local medical health ca e facilities will continue to plan for growth, and therefore no mitigation measures are necessary. Solid Waste Management 1.Euisting Conditions Solid waste collection and disposal services are provided by Waste Management of the Desert through an exclusive franchise agreement with the City of Palm Desert. Waste Management also serves the Thousand Palms,Bermuda Dunes and Sky Valley communities, which aze within the General Plan study area. Commercial pick-up is offered up to six days per week, and residential pick-up is typically once per week. Waste Management offers additional services to large waste generators, including restaurants, retailers, hotels and resorts. Trash collected in the City and planning area is disposed at the Edom Hill Landfill, approximately four miles northwest of the Palm Desert city limits. The landfill is owned and operated by Riverside County, and accepts waste from most Coachella Valley communities. The current operating pernut allows for a maximum of 2,651 tons of waste per day. During 2000, the landfill received an average of 1,295 tons per day. In March 2000, the remaining capacity of the landfill was approximately 4.5 million cubic yards. The landfill is nearing its maximum capacity and is expected to close in 2004. The City of Palm Desert and other Coachella Valley communities are actively planning for and electing viable alternative landfill sites. Alternatives considered include Eagle Mountain Landfill, Mesquite Landfill, Badlands Landfill, Lamb Canyon and the El Sobrante Landfills. In 1997, the Riverside County Board of Supervisors approved the Eagle Mountain Landfill and Recycling Center. The landfill will encompass 2,164 acres and a total capacity of 708 million tons with a life expectancy of 100 years. Litigation has delayed construction of the Eagle Mountain Landfill and __ Recycling Center, therefore, the City must continue to pursue other options for the immediate future. The Mesquite Landfill in Imperial County is also being purchased by the Los Angeles County Sanitation District and is expected to have a capacity similar to that of the Eagle Mountain Landfill. Its construction is also being delayed by litigation, and the future of both these landfills remains unclear. II-167 245 Public Services and Facilities Wastewater T'N/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures Mitigation Monitoring/Reporting Program A. The City Community Development Department shall maintain close contact with project developers to assure the provision and maintenance of recycling containers that correspond with cunent City programs and those planned in the future. Responsible Parties: City Community Development Department, Waste Management of the Desert Wastewater Collection and Treatment 1.Existing Conditions Wastewater collection and treatment services are provided by the Coachella Valley Water'District fo the City of Falm Desert, and majority of the General Plan study area. Wastewater is transmitted through sewer trunk lines generally ranging in size from 4 to 24 inches, relying primarily on gravity flow. Effluent from the City is conveyed to CVWD's Cook Street treatment plant (Water Reclamation Plant No. 10), which has a current capacity of 18 million gallons per day. Effluent from Bermuda Dunes, Del Webb's Sun City and other development north of Miles Avenue is conveyed to the treatment plant located at Madison Street and Avenue 38 (Water Reclamation Plant No. 7). This plant treats approlcimately 2.4 million gallons of wastewater per day, and has a capacity of 5 million gallons per day. CVWD continually increases the capacity of its plants by constructing new treatment ponds, aeration plants and other structures. While much of the General Plan study area is connected to CVWD's sewer system, sevBral areas still rely on septic systems for wastewater disposal. These areas include Sky Valley and scattered residential development in the Thousand Palms area. Wastewater contains contaminants, such as nitrogen, bacteria and organic chemicals that have the .potential to degrade the quality of groundwater and render it unsuitable for human consumption. The long-term use of septic tanks has been associated with contamination of groundwater supplies in limited areas of the Coachella Valley. In 1994., the City adopted Chapter 8.60 of the Municipal Code, an ordinance which re.quires all properties, buildings and structures to abandon existing septic tanks, seepage pits and/or cesspools and to connect to the available public sewer system prior to the sale or transfer of ownership. The sewer connection ordinance also establishes a certificate of compliance process to document abandoning of the on-lot system and connection to the community sewer system. Tertiary Treated Water In an effort to alleviate the impacts of development on groundwater supplies, CVWD has implemented - the use of tertiary (third stage) treated wastewater for use in golf course, landscape and other irrigation. Wastewater is typically treated to secondary levels and reintroduced into the groundwater table through percolation ponds, with passage through sands and soils providing a final stage of filtration. Tertiary treated water undergoes an additional stage of treatment, making it immediately suitable for irrigation purposes and decreasing, to some extent, the demand for groundwater resources. III-170 246 r Public Services and Facilities Wastewater TTI/City of Patm Desert Draft General Plan EIR Section III—Existing Conditions,Tmpacts and Mitigation Measures The Cook Street wastewater treatment plant has a tertiary water capacity of 15 million gallons_per day mgd). The Cook Street plant generates from 1.2 to 7.8 mgd of tertiary treated water, with the average being approximately 4.4 mgd. The treatment plant at Madison Street and Avenue 38 generates from 0.$ to 2.5 mgd of tertiary treated water, and has a maximum current capacity of 2.5. This plant is planned for expansion to treat 5 mgd within the next few years. 2.Project Impacts Buildout of the proposed General Plan will result in an increased demand on existing wastewater collection and treatment facilities. Domestic wastewater flows average about 100 gallons per capita per day.9 Based on this factor and the estimated buildout population of 148,387 residents, the General Plan study area has the potential to generate approximately 14,838,700 gallons of wastewater per day. Actual wastewater generation rates will be dependent upon future levels of development. The increase in demand for wastewater collection and treatment services at General Plan buildout may represent a potential significant increase over the current level of service provided. However, buildout of the General Plan study area is anticipated to occur gradually, therefore it is safe to assume that the increase in demand to wastewater collection and treatment services will not be experienced at one time. Nonetheless, it is necessary that the City and the Coachella Valley Water District continue to monitor growth trends in the General Plan study area to assure that wastewater services are adequate, as well as to determine the need and funding for additional facilities. 3.NLt gation Measures A. All development shall be connected to the city-wide sewer system, to the greatest extent possible. Septic systems shall be prohibited where soil conditions do not permit percolation. B. The City shall investigate and evaluate alternative methods of financing a city-wide sewer system and converting existing septic systems to sewer, including redevelopment funds, assessments and other funding mechanisms. C. The City shall cooperate and coordinate with the Coachella Valley Water District to assure that adequate wastewater collection and treatment facilities ate provided to serve development in the General Plan study area. . D. The City shall coordinate with Coachella Valley Water District to monitor the demand for tertiary treated water within the General Plan study area, and shall investigate the feasibility of providing tertiary treated water as demand wanants. 9 " Environrnental I JmpactAnalysisHandbook, prepared by ohn G. Rau and Dav d C.Wooten, 1980. III-171 247 Public Services and Facilities Wastewater TN/City of Paim Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures Mitigation Monitoring/Reporting Program A. The City Community Development Department and Public Works shall confer and coordinate with the Coachella Valley Water District to develop plans for implementing city-wide sewer service. Responsible Parties: City Community Development Department, City Public Works Department, Coachella Valley Water District Domestic Water Services 1. E nsting Conditions Coachella Valley Water District The Coachella Valley Water District (CVWD) provides domestic water services to the majority of the City of Palm Desert, including Thousand Palms, and Del Webb's Sun City. CVWD utilizes deep wells to extract groundwater from the Whitewater River Subbasin. CVWD's domestic water system, which serves the City, includes 54 wells with an average depth of 900 feet. CVWD also has a total of 27 reservoirs serving the General Plan study area, with an average capacity of 1.8 million gallons. Some of these reservoirs may also serve pressure zones which extend beyond the study area. The largest (i.e., main or trunk) water lines are generally located along section lines, with smaller lines branching into individual sections. The Coachella Valley Water District also provides domestic water services to the Sky Valley community, in the northern portion of the General Plan planning azea. Due to high concentrations of undesirable minerals, CVWD does not extract water for domestic use from the Desert Hot Springs Subbasin, which unde rlies the community of Sky Valley. Rather, water delivery infrastructure in this area includes main lines that transmit water from CVWD wells located in the Mission Creek Subbasin west of Palm Drive. Myoma Duaes Mutual Water Company The Myoma Dunes Mutual Water Company provides domestic water services to the Bermuda Dunes commutity, except for development along Washington Street, which is served by CVWD. Its five active wells, drilled to depths of 750 to 800 feet, can each produce 1,700 to 3,200 gallons of potable water per minute. Three of the production wells discharge water directly into the water distribution system, which conveys water through distribution water mains ranging in size from 4 to 12 inches in diameter. The two other wells deliver water directly into a water reservoir near the intersection of 41S` Avenue and Hermitage Drive. The reservoir has a capacity of one million gallons. Myoma Dunes operates a sixth well, which is used solely by the Bermuda Dunes Airport and is not connected to the water delivery _. system. 2.Project Impacts Continued increases in water demand generated by development in the Coachella Valley, including the General Plan study area, could have significant cumulative impacts on the region's groundwater supply. The Coachella Valley Water District has developed water usage factors for a variety of land uses, based II-172 248 Public Services and Facilities Domestic Water TTT/City of Palm Desert. Draft General Plan EIR , Section III—Existing Conditions,Impacts and Mitigation Measures on usage per acre. Table III-46 illustrates these factors, and the associated acre ges within the General Plan study area. Table III-46 General Plan Buildout Water Consum tion Annual Consumption Total Annual Factor (ac-Consumptio evelo ment T e ft/ac/ r) Acres ac-ftl r) Iolf Course Developments and Large esidential Lots(_0.5 ac) 7.36 24,504 180,349 I A artments and Condominiums 6.36 3,795 24,136 esidential (Lots <0.5 ac) 6.09 14,698 89,511 otels and Motels 8.76 329 2,882 I usiness Offices 5.85 919 5,376 Gasoline Stations 5.12 Su ermarket Sho in Centers 4.81 18b 895 ublic Schools 4.34 521 2,261 etail Sho in Areas 3.05 1,454 4,435 ndustrial Parks &Auto Dealers 2.47 1,100 2,717 otal 47,506 312,562 According to CVWD's usage factors, the buildout of the General Plan will result in usage of 312,562 acre feet of water annually. This analysis assumes maximum buildout of all land uses, and is therefore expected to be conservative. It should be noted that increases in water consumption will occur gradually, over the life of the General Plan study area. Actual impacts to domestic water services are dependent upon the levels and types of development that will occur in the General Plan study area. Section III-E provides a comprehensive discussion regarding impacts to water resources and quality in the General Plan study area. 3.Mitigation Measures A. All future development projects•shall be reviewed by the City, Coachella Valley Water District t or Myoma Dunes Mutual Water Company to evaluate potential impacts of development activities on local groundwater resources. B. The City shall require the development of on-site stormwater retention/detention basins to enhance infiltration of runoff and the replenishment of groundwater subbasins. C. The City, Coachella Valley Water District, and Myoma Dunes Mutual Water Company shall encourage the use of drought tolerant landscaping in pnblic and private development as a means of water conservation. All development plans shall be required to adhere to the City's landscape ordinance. I-173 249 Public Services and Facilities Domestic Water TN/City of Palm Desert Draft General Plan EIR Section III-Existing Conditions,Impacts and Mitigation Measures D. The City shall encourage andlor require the installation of low-flush toilets, low-flow showerheads and faucets in all new construction, in conformance with Section 17921.3 of the Health and Safety Code, Title 20, California Administrative Code Section 1601(b), and applicable sections of Title 24 of the StaCe Code. Mitigation Monitoring/Reporting Program A. The Community Development Department shall review all development proposals to assess the potential for adverse effects on water quality and quantity. All development proposals shall be required to mitigate any significant impacts. Responsible Parties: City Community Development Department, Coachella Valley Water District, Myoma Dunes Mutual Water Company,Developers Electricity 1.Existing Conditions Southern California Edison Southern California Edison (SCE) provides electricity to the majority of the Palm Desert General Plan study area. Its service area includes most of the City of Palm Desert, excluding a portion of the California State University/San Bernardino (CSSB) Coachella Valley Campus site, Avondale Country Club and other limited areas south of US Interstate-10 (see Imperial Irrigation District discussion below), and lands west of Ford Avenue in Sky Valley. SCE's electric power is primarily generated outside the Coachella Valley, however, it does purchase wind-generated power from local producers. SCE's facilities include high-voltage transmission lines, which range up to 115 kilovolts (kv) in the City of Palm Desert and up to 500 kv in the northern portion of the General Plan planning area. Lower- voltage distribution lines, which are typically gauged at about 12 kv in the study area, provide electricity to individual residences and other users. Three substations are located within the City of Palm Desert and are used to step down voltage for local distribution. The substations include: 1) Silver Spur Substation, located south of Haystack Road and west of Portola Avenue; 2) Palm Village Substation, located south of Highway 111 and east of Deep Canyon Road; and 3) Concho Substation, located south of Country Club Drive and east of Cook Street, near the Indian Ridge Country Club. In addition, some circuits from the Santa Rosa Substation, located west of Monterey Avenue and north of Clancy Lane in Rancho Mirage, feed into the City of Palm Desert. Imperial Irrigation District Imperial Irrigation District (IID) is a non-profit, community-owned utility district that serves customers in Imperial County and parts of Riverside and San Diego counties. IID provides electric service to a limited portion of the Palm Desert General Plan study area, including the Avondale Country Club, most of the CSSB Coachella Valley Campus, Sun City, Thousand Palms, Bermuda Dunes and the eastern portion of Sky Valley. IID obtains its power from a combination of hydroelectric, thermal, diesel, and III-174 250 Public Services and Facilities Electri ity TTT/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures 3.Mitigation Measures A. Developers shall coordinate and cooperate with Southern California Edison and Imperial Irrigation District in implementing load management programs which level the demand load on generating capacities. Every effort shall be made to assure the highest level of energy conservation available. B. An ro osed develo ment in the General Plan study area shall be subject to the requirements of YP P P the Uniform Building Code and Title 24 of the California Administrative Code. C. Pro'ect develo ers shall be re uired to utilize ener efficient desi n to minimize summer timeJPqgYg solar gains and reduce air conditioning loads. D. The use of energy efficient lighting fixtures m developments within the General Plan study area shall be required. Mitigation Monitoring/Reporting Program A. The Community Development Department, Public Works Department, and Building Department shall inspect all detailed project plans for conformance with Title 24 energy conservation code requirements. Southern California Edison, Imperial Irrigation District and the City Community Development Department shall provide developers with references for energy efficient design. Responsible Parties: City Community Development Department, Public Works Department, Building Department, Southern California Edison, Imperial Irtigation District B. Prior to the undergrounding of utility lines, all affected utility companies shall be contacted for detailed information about system restrictions, district boundaries, and scheduling. Responsible Parties: Southern California Edison, Imperial Irrigation District, Verizon California, The Gas Company, Coachella Valley Water District, Myoma Dunes Mutual Water Company Natural Gas 1.Elcisting Conditions The Southern California Gas (SCG) Company provides natural gas services and facilities to the City of Palm Desert and its General Plan study area. Locally used natural gas originates in Texas and is transported to the Coachella Valley via three east-west trending high pressure gas transmission lines, - which cross the valley just north of Interstate-10 and continue west to Los Angeles. The lines include one 30-inch line and two 24-inch lines, with pressures of 2,000 pounds per square inch (psi). Within the General Plan study area, high pressure gas lines are located beneath Washington Street, Highway 111, Sierra del Sol (serving Thousand Palms), and Dillon Road (serving Sky Valley). These are typically steel lines with pressures of 300 psi. The Washington Street and Siena del Sol lines tap directly into the major transmission lines north of I-10. Medium pressure distribution lines are located III-176 251 A Public Services and Facilities Natural Gas TTI/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures within the rights-of-way of Country Club Drive, Fred Waring Drive, Monterey Avenue, Cook Street, and Highway 74. These lines range from 38 to 42 psi, and are typically constructed of 4-inch plastic, although older lines may be made of steel. Although most of the City of Palm Desert is connected to the natural gas system, lands west of the Palm Valley Stormwater Channel, parallel to Highway 74, are not served. Residents in this area use propane gas as an alternative fuel source. The Gas Company estimates the average household in its service area consumes 6,600 cubic feet of natural gas per month. Table III-48 illustrates natural gas consumption factors established by the South Coast Air Quality Management District(SCAQIVID). Table III-48 Natural Gas Consumption Factors Land Use Monthly Consumptio Rate Single Family Residential 6,665.0 cf/unidmonth Multiple Family Residential 4,011.5 cf/sq.ft./month RetaiUShopping Center 2.9 cf/sq.ft/month Office 2.0 cf/sq.ft/month HoteUMotel 4.8 cf/sq.ft/month Industrial 4.8 cf/sq.ft/month Note: Industrial usage factor used is equivalent to the highest commercial usage factor provided by SCAQMD. Source: SCAQMD Air Quality Handbook, Appendix to Chapter 9,April 1993 2. Project Impacts An increase in demand for natural gas services is anticipated as the General Plan study area builds out. Natural gas consumption is estimated at 614,046,131 cubic feet per month at General Plan buildout. This figure represents both existing and future developments in the General Plan study area, and assumes buildout at moderate densities. Actual natural gas consumption will be determined by future levels of development, individual project designs, and the effectiveness of energy-conserving measures. Development facilitated by the proposed General Plan will increase the rate of consumption of this non- renewable source and will contribute to cumulative impacts on the long-term availability of natural gas. However, General Plan buildout, in and of itself, is not expected to significantly impact natural gas supplies or the provider's ability to deliver it. 3.Mitigation Measures A. The City shall strictly enforce Title 24 of the California Administrative Code, which addresses energy conservation in new developments. B• Developers shall install the most efficient furnaces, water heaters, pool heaters and other equipment that use natural gas. Developers shall also encourage the use of kitchen appliances III-177 252 t Public Services and Facilities Natural Gas TN/City of Palm Desert Draft General Plan EIR Section III-Existing Conditions,Impacts and Mitigation Measures that utilize natural gas and shall investigate the possibility of using alternative energy, sources, including solar and co-generation technologies. Mitigation Monitoring/Reporting Program A. The Community Development and Public Works Department shall inspect all detailed project plans to assure conformance with Title 24 energy Gonservation code requirements. The Community Development Department shall coordinate with The Gas Company to provide developers with references for energy efficient design. Responsible Parties: City Community Development Department, Public Works Department, The Gas Company Telephone Service 1.Existing Conditions Verizon California provides local residential and business telephone services to the General Plan study area.The Verizon California headquarter is in Thousand Oaks, however local customer service facilities are located in the cities of Palm Springs and Indio. Verizon services include a variety of basic and special features, including local and long distance services, calling cards, business 800 numbers, and voicemail, as well as state-of-the-art data services such as internet and high-speed DSL connections. The General Plan study area includes three central switching offices, which function as the backbone of the communications system and aze responsible for the connection of telephone and data transmissions. Central offices are located in Palm Desert, on the north side of Highway 111, between San Jose and San Juan Avenues; in Bermuda Dunes, on the east side of Washington Street at Avenue of the States; and in Thousand Palms, on the west side of Arbol Real, between La Canada Way and Ramon Road. Calls to the Sky Valley area are handled out of a central switching office in Desert Hot Springs. 2. Project Impacts Growtfi facilitated by the proposed General Plan will generate additional demands on existing infrastructure and will require the expansion of telephone services to areas not currently served. However, no significant impacts are anticipated with the implementation of the proposed General Plan that will affect the ability of Verizon, California to provide telecommunication services in the General Plan study azea. 3. Mitigation Measures A. Developers shall provide re uired ri ht-of-wa for new Verizon conduit s stems to rovide9gYYP telephone services to their sites. III-178 q253 Socio—Economic Resources Mitigation Measures TN/City of Palm Desert Draft General Ptan EIR Section III—Existing Conditions,Impacts and Mitigation Measures persons are likely to purchase their homes, and will occupy units built on lands designated Low Density residential, which will generate an additional 24,905 units in the City, and 14,261 units in the Sphere and planning area. In comparison with the Cunent General Plan, which has the potential to generate 9,663 medium and high density units within the City limits, and 15,570 medium and high density units in the Sphere and planning area, the Preferred Alternative land use plan represents•an increase of 47% in the potential for the City to house its employees in the Medium and High Density Residential land use categories alone. 3.Mitigation Measures The Draft General Plan includes a number of policies which will serve to guide the City's economic health in the next several years. The City's aggressive economic development policy will continue to facilitate the creation of jobs and associated revenues. A. The City shall monitor the employment generated by its commercial and industrial land uses, and periodically analyse this generation in comparison to the residential land use allocations to encourage the provision of adequate housing for as many of its workers as practical. B . The Cit shall evaluate new develo ment or redevelo ment to assure that these usesYPP icomplement, support and are compatible with the City's core economic assets. C. The City shall consider economic implications of annexations as part of the approval process for annexation requests. D. The City shall continue to encourage the development of hotels, resort hotels and timeshare Iprojects in the City. E. The City shall continue to encourage the development of new and expanded educational facilities of all levels in the City. F. The City shall be aggressive in its retention of existing businesses and recruitment of new businesses that complement the City's core economic assets. I G. The City shall coordinate its Capital Improvement plans to assure the provision of adequate infrastructure to support and facilitate development of commercial and light industrial projects which expand the City's economic base. I H. All projects shall contribute their fair share of on- and off-site improvements required to upport their site. I.The City shall routinely review and revise, as necessary, the allocation of revenues required to mitigate the impacts of growth. 1 III-203 254 Socio—Economic Resources Mitigation Measures TTt/City of Palm Desert Draft General Plan EIR Section III—Existing Conditions,Impacts and Mitigation Measures J.Prior to any annexation effort, the City shall evaluate the feasibility of annexing land to assure its economic and fiscal viability. K. The City Zoning Ordinance and Development Code shall be updated, revised and expanded to assure analysis regimes and standards ancl guidelines that assure adequate protection of the City's core economic interests and especially the preservation of the natural environment. Mitigation Monitoring and Reporting Program A. The City shall continue to monitor economic growth and focus its Economic Development efforts in areas of retail, resort and educational services. Resgonsible Parties: City Council,Redevelopment Agency, City Manager. B. The Cit shall anal se land use develo ment atterns annuall , and determine whetherYYPPY amendments to the land use map are required to encourage a balance of housing and jobs. Responsible ParNes: City Council, Community Development Department C. The City shall prepare economic feasibility analyses for all potential annexation efforts, as part of the decision-making process for annexations. Responsible ParNes: City Council, City Manager, Community Development Department. III-204 255 CITY OF PALM DESERT CITY MANAGER’S OFFICE INTEROFFICE MEMORANDUM Date: July 18, 2024 To: Honorable Mayor and Councilmembers From: Anthony J. Mejia, City Clerk Subject: City Council Meeting of July 18, 2024 Below you will find questions received from the Mayor or Councilmembers and answers provided by City staff regarding tonight’s City Council meeting: ITEM 3a: ADOPTION OF A RESOLUTION AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25 ITEM 3b: ADOPTION OF A RESOLUTION AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25 Q1: When did these levies begin? A1: With almost any special tax, it is customary to name them according to their inception date; so the 2005-1 was initiated in 2005. And the 2021-1 was initiated in 2021. The levies begin following the issuance of the associated debt. Q2: Is there a link to the original staff report when the CFD was started for each? A2: Click here for the Staff Report for Formation of CFD 2005-1. Click here for the Staff Report for the Formation of CFD 2021-1. Q3: How much is outstanding for each bond? A3: Below is an excerpt from the 2022-23 ACFR. The balance of the bonds listed below, upon final close of FY 2023-24, will be $34,890,000 (excluding any payoffs by property owners). In February 2024, the City Council approved the second tranche (Series 2024) for the CFD 2021-1 bonds. That adds $11,600,000 for an estimated total balance of $46,490,000 for all assessment and facilities districts. There are two additional special assessments/bonds issues on behalf of property owners that are considered “with Government Commitment.” 256 07/18/2024 Question & Answer Memo Page 2 of 2 In 2004, the Highlands Neighborhood approved an assessment district w/bonds issued to fund their utility undergrounding. The Highlands AD bonds are considered “limited obligation” only to the extent that the assessment collections are insufficient to pay t he debt service (the City has a potential obligation to provide additional funds to pay the debt service). In 2009, debt was issued to fund the Energy Independence Program (EIP). Similar to the Highlands, if assessment collections to pay debt service are insufficient, the City has a potential obligation to provide additional funds to pay the debt service. The balance of the bonds listed below, upon final close of FY 2023-24, will be $1,084,000 (excluding any payoffs by property owners). Q4: How much does the city have in outstanding bonds? The City does not currently have any outstanding bonds and is debt free. The bonds associated with the AD’s/CFD’s are issued by the City on behalf of, and at the request of the property owners to assist with financing the public improvements required for their developments. As mentioned above, the City only has a limited obligation if the Highlands AD or EIP assessment collections are not sufficient to pay their debt service. 257 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: July 18, 2024 PREPARED BY: Veronica Chavez, Director of Finance REQUEST: ADOPTION OF A RESOLUTION AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25 RECOMMENDATION: Adopt a Resolution entitled “A RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25.” BACKGROUND/ANALYSIS: The CFD is located in the area north of Desert Willow between Portola and Cook Street whose improvements are financed by the issuance of the CFD’s $15.2 million refunding bonds issued to fund the remaining public improvements. Annually, the City Council must approve the levy of the special tax. Staff requests that the City Council authorize the levy of a special tax to pay for costs and expenses related to this District. The maximum rate of the special tax for the next fiscal year is attached to the resolution as Exhibit A. Approval of the resolution will allow the County Auditor to collect taxes as they beco me due. FINANCIAL IMPACT: The CFD 2021-1A (University Park) bonds are repaid through taxes collected on the respective parcels located within the boundaries. Approval of the resolution will allow the parcels to be levied for the 2024-25 tax year and provide the city with the funds to pay the debt service on a timely basis. ATTACHMENTS: 1. Resolution 2. Exhibit “A” – Proposed Special Tax Rates 258 RESOLUTION NO. 2024-____ A RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25 WHEREAS, the City Council of the City of Palm Desert (hereinafter referred to as the "Agency"), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a Community Facilities District, as authorized pursuant to the terms and provisions of the "Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. Community Facilities Distri ct No. 2021-1 shall hereinafter be referred to as "District" and, WHEREAS, this City Council, by Ordinance as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said District, and this City Council intends to establish the specific rate of the special tax to be collected for the next fiscal year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. That the above recitals are true and correct. SECTION 2. That the special tax rates for each tax category to be used to generate special tax revenues, which will be collected to pay for the costs and expenses for the next fiscal year (2024-25) for the referenced District, is hereby determined and established as set forth in the attached, referenced and incorporated Exhibit “A”. SECTION 3. That the rate as set forth above does not exceed the amount as previously authorized by Ordinance of this Council, and is not in excess of that as previously approved by the qualified electors of the District. SECTION 4. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties, procedures and sale in case of any delinquency for ad valorem taxes. The Tax Collector is hereby authorized to deduct reasonable administrative costs incurred in collecting any said special tax. SECTION 5. Monies above collected shall be paid into the District funds. SECTION 6. The Auditor of the County is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land effected in a space marked "public improvements, special tax" or by any other suitable designation, the installment of the Special Tax, and for the exact rate and amount of said tax, reference is made to the attached Exhibit “A”. 259 Resolution No. 2024-____ Page 2 2 SECTION 7. The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection. SECTION 8. Special Taxes are to be levied on non -exempt parcels within the District. Should it be discovered that any taxable parcels are not submitted to the County Auditor for inclusion into the 2024-25 Tax Roll subsequent to the submittal deadline of August 10, 2024, the City Council directs the City of Palm Desert staff or their agents to bill such parcels directly via U.S. mail using the rates as approved in Exhibit “A”. ADOPTED ON ________________, 2024. KARINA QUINTANILLA MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK 260 Resolution No. 2024-____ Page 3 3 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2024-__ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on _______________________, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________. ANTHONY J. MEJIA CITY CLERK 261 Exhibit “A” Community Facilities District No. 2021-1 (University Park) Proposed Special Tax Rates Fiscal Year 2024-25 The following tables summarize the Assigned and the Proposed Special Tax Rates relating to each land use class. Zone 1 (1)The Assigned Special Tax for Developed, Provisional Welfare, Provisional, Approved, and Undeveloped Property shall be increased by two percent (2%) of the amount in effect the prior Fiscal Year. (2)The Proposed Special Tax Rates to be Levied for Fiscal Year 2024/2025 will not exceed the Assigned Special Tax Rates described above. Zone 2 (1)The Assigned Special Tax for Developed, Provisional Welfare, Provisional, Approved, and Undeveloped Property shall be increased by two percent (2%) of the amount in effect the prior Fiscal Year. (2)The Proposed Special Tax Rates to be Levied for Fiscal Year 2024/2025 will not exceed the Assigned Special Tax Rates described above. LAND USE CLASS SPECIAL TAX RATE MULTIPLIER RESIDENTI AL FLOOR AREA ASSIGNED SPECIAL TAX RATE(1) PROPOSED SPECIAL TAX RATE(2) Developed & Provisional Welfare Property 1 Single Family Property Per Residential Unit ≥2500 $2,440.77 $2,440.77 2 Single Family Property Per Residential Unit 2400-2499 $2,361.18 $2,361.18 3 Single Family Property Per Residential Unit 2300-2399 $2,308.12 $2,308.12 4 Single Family Property Per Residential Unit 2200-2299 $2,228.53 $2,228.53 5 Single Family Property Per Residential Unit 2100-2199 $2,148.94 $2,148.94 6 Single Family Property Per Residential Unit 2000-2099 $2,042.82 $2,042.82 7 Single Family Property Per Residential Unit 1900-1999 $1,697.93 $1,697.93 8 Single Family Property Per Residential Unit 1800-1899 $1,644.87 $1,644.87 9 Single Family Property Per Residential Unit < 1800 $1,353.04 $1,353.04 10 Non-Residential Property Per Acre NA NA NA Provisional, Approved, & Undeveloped Property Per Acre NA $16,362.76 $16,362.76 LAND USE CLASS SPECIAL TAX RATE MULTIPLIER RESIDENTIAL FLOOR AREA ASSIGNED SPECIAL TAX RATE(1) PROPOSED SPECIAL TAX RATE(2) Developed& Provisional Welfare Property 1 Single Family Property Per Residential Unit ≥3400 $3,210.15 $3,210.15 2 Single Family Property Per Residential Unit 3200-3399 $3,157.09 $3,157.09 3 Single Family Property Per Residential Unit 3000-3199 $3,050.97 $3,050.97 4 Single Family Property Per Residential Unit 2800-2999 $2,971.38 $2,971.38 5 Single Family Property Per Residential Unit 2600-2799 $2,838.73 $2,838.73 6 Single Family Property Per Residential Unit 2400-2599 $2,785.67 $2,785.67 7 Single Family Property Per Residential Unit 2200-2399 $2,759.14 $2,759.14 8 Single Family Property Per Residential Unit 2000-2199 $2,732.61 $2,732.61 9 Single Family Property Per Residential Unit < 2000 $2,626.48 $2,626.48 10 Non-Residential Property Per Acre NA NA NA Provisional, Approved, & Undeveloped Property Per Acre NA $20,504.66 $20,504.66 262 Resolution No. 2024-____ Page 5 5 Zone 3 (1)The Assigned Special Tax for Developed, Provisional Welfare, Provisional, Approved, and Undeveloped Property shall be increased by two percent (2%) of the amount in effect the prior Fiscal Year. (2)The Proposed Special Tax Rates to be Levied for Fiscal Year 2024/2025 will not exceed the Assigned Special Tax Rates described above. LAND USE CLASS SPECIAL TAX RATE MULTIPLIER RESIDENTIAL FLOOR AREA ASSIGNED SPECIAL TAX RATE(1) PROPOSED SPECIAL TAX RATE(2) Developed & Provisional Welfare Property 1 Single Family Property Per Residential Unit ≥2500 $2,440.77 $2,440.77 2 Single Family Property Per Residential Unit 2400-2499 $2,361.18 $2,361.18 3 Single Family Property Per Residential Unit 2300-2399 $2,308.12 $2,308.12 4 Single Family Property Per Residential Unit 2200-2299 $2,228.53 $2,228.53 5 Single Family Property Per Residential Unit 2100-2199 $2,148.94 $2,148.94 6 Single Family Property Per Residential Unit 2000-2099 $2,042.82 $2,042.82 7 Single Family Property Per Residential Unit 1900-1999 $1,697.93 $1,697.93 8 Single Family Property Per Residential Unit 1800-1899 $1,644.87 $1,644.87 9 Single Family Property Per Residential Unit < 1800 $1,353.04 $1,353.04 10 Apartment Property Per Residential Unit NA $0.00 $0.00 11 Non-Residential Property Per Acre NA NA NA Provisional, Approved, & Undeveloped Property Per Acre NA $24,049.09 $24,049.09 263 CITY OF PALM DESERT CITY MANAGER’S OFFICE INTEROFFICE MEMORANDUM Date: July 18, 2024 To: Honorable Mayor and Councilmembers From: Anthony J. Mejia, City Clerk Subject: City Council Meeting of July 18, 2024 Below you will find questions received from the Mayor or Councilmembers and answers provided by City staff regarding tonight’s City Council meeting: ITEM 3a: ADOPTION OF A RESOLUTION AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25 ITEM 3b: ADOPTION OF A RESOLUTION AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2024-25 Q1: When did these levies begin? A1: With almost any special tax, it is customary to name them according to their inception date; so the 2005-1 was initiated in 2005. And the 2021-1 was initiated in 2021. The levies begin following the issuance of the associated debt. Q2: Is there a link to the original staff report when the CFD was started for each? A2: Click here for the Staff Report for Formation of CFD 2005-1. Click here for the Staff Report for the Formation of CFD 2021-1. Q3: How much is outstanding for each bond? A3: Below is an excerpt from the 2022-23 ACFR. The balance of the bonds listed below, upon final close of FY 2023-24, will be $34,890,000 (excluding any payoffs by property owners). In February 2024, the City Council approved the second tranche (Series 2024) for the CFD 2021-1 bonds. That adds $11,600,000 for an estimated total balance of $46,490,000 for all assessment and facilities districts. There are two additional special assessments/bonds issues on behalf of property owners that are considered “with Government Commitment.” 264 07/18/2024 Question & Answer Memo Page 2 of 2 In 2004, the Highlands Neighborhood approved an assessment district w/bonds issued to fund their utility undergrounding. The Highlands AD bonds are considered “limited obligation” only to the extent that the assessment collections are insufficient to pay t he debt service (the City has a potential obligation to provide additional funds to pay the debt service). In 2009, debt was issued to fund the Energy Independence Program (EIP). Similar to the Highlands, if assessment collections to pay debt service are insufficient, the City has a potential obligation to provide additional funds to pay the debt service. The balance of the bonds listed below, upon final close of FY 2023-24, will be $1,084,000 (excluding any payoffs by property owners). Q4: How much does the city have in outstanding bonds? The City does not currently have any outstanding bonds and is debt free. The bonds associated with the AD’s/CFD’s are issued by the City on behalf of, and at the request of the property owners to assist with financing the public improvements required for their developments. As mentioned above, the City only has a limited obligation if the Highlands AD or EIP assessment collections are not sufficient to pay their debt service. 265