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REQUEST:
CITY OF PALM DESERT
DEPARTMENT OF COMMUNITY DEVELOPMENT
STAFF REPORT
Authorize reimbursement payment in the amount of $22,705 to Stone
Eagle Development, LLC, for installation of conduit, pull boxes and
underground vaults to allow for future undergrounding of utilities north
of the Stone Eagle development.
SUBMITTED BY: Lauri Aylaian
Director of Community Development
VENDOR:
Stone Eagle Development, LLC
74-001 Reserve Drive
Indian Wells, CA 92210
DATE: September 13, 2007
CONTENTS: Stone Eagle Invoice dated March 23, 2006
Site Map
Recommendation:
By Minute Motion, that the City Council:
1. Authorize reimbursement in the amount of $22,705 to Stone Eagle
Development, LLC, for work performed in 2006 to provide for future
undergrounding of utilities to the north of Stone Eagle Development;
and
2. Appropriate $22,705 to Account No. 110-4470-412-3090 from
unobligated general fund monies.
Executive Summary:
Approval of the staff recommendation will allow the City to reimburse the
developer for work that was performed in good faith at the City's request in
early 2006. The City is not obligated by any contractual agreement to
reimburse the developer, but staff believes that the City has benefited from
the work performed, that the cost of the work is reasonable and is
Staff Report
Stone Eagle Development, LLC
Page 2
September 13, 2007
significantly less than it would have been had the work been performed at a
future date, and that reimbursement of the developer is appropriate in this
situation.
Discussion:
Homes on the west side of Highway 74 north of Stone Eagle are served by utility
lines that are above grade and that are suspended above the Palm Valley Storm
Channel and across Calle de los Campesinos near the Homme Adams Park.
Although there is no current program to underground these utility lines, many
neighborhoods in the city are studying and/or undertaking undergrounding
projects to provide beautification of their neighborhoods and to increase safety
and emergency preparedness in the event of earthquakes. In the likely event
that utilities are undergrounded in this area at some point in the future, work
will need to be performed on the west side of Calle de los Campesinos. In
particular, conduit will need to be installed underground from approximately
Stone Eagle Drive to Chapel Hill Road. Conductors will then need to be installed
for both electrical service and low voltage communication systems.
In early 2006 when the Stone Eagle development was under construction,
members of staff discussed with the developers the potential need for
installation of underground conduit in the right-of-way where the developer was
performing grading and landscaping work. Upon verbal suggestion of staff
representatives, the developer agreed to excavate trenches for installation of
conduit and to backfill and compact those trenches prior to performing finish
grading and landscaping in the area. Since the area was under construction at
the time, it was far more cost effective to have the conduit installed by the
developer than it would have been to hire a contractor in the future to mobilize
in the area, remove the newly installed landscaping, excavate a new trench and
install conduit for the undergrounding. The Stone Eagle developer performed this
work in good faith, anticipating that the City would reimburse them the cost of
the work prior to completion of their project. In May of 2006 Stone Eagle
Development, LLC, submitted the attached invoice for $22,705, but as of the
date of this staff report, the invoice has not been paid.
Staff has reviewed the detailed costs provided in the invoice and finds them to
be reasonable for the work performed. Staff also concurs that the cost of
performing the work at a future date would be significantly higher for the
Staff Report
Stone Eagle Development, LLC
Page 3
September 13, 2007
reasons described above. Therefore, staff recommends that the subject invoice
be paid, reimbursing the developer for the work performed last year. In the
event that a project is undertaken to underground utilities in this area, the City
can count this payment toward its participation in the cost of the
undergrounding project.
Submitted by:
LAURI AYLAIAN
Director of Community Development
Approva
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ACM, Devel
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CARLOS L. ORTEGA
City Manager
PAUL GIBSON
Director of Finance
CITY COUNCIL CTION:
APPROVED 1 DENIED
RECEIVED OTHER
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May 23, 2006
To:
STONE tAGL�
Phil Drill
Director of Community Development
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
From: Nizar Farhat
Stone Eagle Development
Subject: Dry Utility Installation
Dear Phil:
Per your request, we installed the following dry utilities conduits and boxes for the City
to provide to homeowners North of the Stone Eagle Development.
1. Excavation & backfill 550 ft. @ $6.50/lf
2. Furnish and install 5'x 8'6" Edison Vault 1 @ $6800
3. Furnish and install 3'x5'x4' Edison concrete pull box
4. Furnish and install 5" DB electric conduit 550/lf @ $5.25/lf
5. Furnish and install 4" GT 42 conduit 1,100/lf @ $4.30/lf
6. Furnish and install 2" security conduit 550/1f @ $2.75/lf
7. Furnish and install 17"x30" Verizon pull box 1 @ 450
Total
$3575.00
6800.00
2750.00
2887.50
4730.00
1512.50
450.00
$22,705.00
Phil, this work is completed and Stone Eagle would like to be reimbursed for the total
amount listed. If you need any other information pertaining to these charges, please
contact me at 760-837-2550.
Sincerely,
Nizar Farhat
Project Engineer
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Stone Eagle Conduit Installation
Reimbursement Request
13 September 2007
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LEGEND
Existing overhead utility lines
Future undergrounding of utilities
Underground conduit installed by Stone Eagle developer