HomeMy WebLinkAboutRelease Scrty - T28818-5 (Marriott Vacation Club) CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: RELEASE SECURITY FOR TRACT 28818-5 (MARRIOTT
SHADOW RIDGE)
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
APPLICANT: Marriott Vacation Club
Tom Wolf
1200 U.S. Highway 98 S.
Suite 40 CITyCOtTNCtLACT10N
Lakeland, FL 33801 APPROVED �� nF.N1F.n
Palm Desert National Bank RECEIVF.D OTHF.R -
73-745 EI Paseo MEFTIN(s 1�A'i'i; '��
Palm Desert, CA 92260 AYES: � � �'e
NOES: r
CD NUMBERS: 007962 & 007964 A�3sr�iT: �
AI3STAIN: �m ,�
DATE: August 26, 2010 Vr12[F��'l� I3Y:
Original on File with �ty Clerk's Office
CONTENTS: CD
Agreement
Vicinity Map
Recommendation
By Minute Motion, release security for Tract 28818-5 (Marriott Shadow
Ridge).
Backqround
Marriott Shadow Ridge is located on Monterey Avenue between Frank Sinatra Drive
and Gerald Ford Drive. At the time of permit issuance, performance security in the total
amount of $82,665 was posted with the City for rough grading for phases 7 and 9.
Rough grading is now complete. Staff has inspected the site and found it to be
acceptable. Since the subject security is for rough grading, the normal one-year
maintenance bond is not required.
Staff Report
Release Security for Tract 28818-5 (Marriott Shadow Ridge)
August 26, 2010
Page 2 of 2
Fiscal Analysis
There is no fiscal impact associated with this action.
Prepared By: Departm nt e d: �
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Christina Canales, Assistant Engineer Mark Gree ood, P.E.,
Director of Public Works
Paul S. Gibson, Director of Finance
Approval:
. �
Jo . Wohlmuth, C' an ger
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FBO CZTY OF PALM DESERT - Tr #28818-5 � `
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FBO CITY OF PALM DESERT - Tr ��28$1$-5
Attn; Peter J A Rodholm - ( Phases 7 & 9 -�=�'�� ' nthly _. ` _'�' .�
fi400 Shadow Ridge Raad
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GRADlNG ONLY AGREEMENT
DATE OF AGREEMENT: March 20 , 2007
NAME OF OWNER/DEVELOPER Marriott ownership Resorts, znc.
(referred to as "GRADER").
PROPERTY (MAP AND PARCEL NO.): T. 28818-5 No. of Lots: 1--13
(referred to as "PROPERTY").
GRADING PLANS APPROVED ON: January 9, 2007
(referred to as "GRADING PLANS").
ESTIMATED TOTAL COST OF GRADING:$ 316, 880
SURETY:
BOND NOS:
SURETY:
-O R-
1RREVOCABLE STAND-BY LETTER OF CREDIT NO.
FINANCIAL INSTITUTION:
-OR- CD #007962 &
-e��H/CERTIFICATE OF DEPOSIT, AGREEMENT DATED: cn #00796�
FINANCIAL INSTITUTION:Palm Desert National Bank
This Agreement is made and entered into by and befinreen the City of Palm Desert,a
municipal corporation of the State of California, hereinafter referred to as "CITY", and the
GRADER.
RECiTALS
A. In consideration of the approval of the Grading Plans for the PROPERTY by
the City Council, GRADER desires to enter into this Agreement, whereby GRADER
promises to complete, at GRADER's own expense, all the grading work required by CITY in
connection with the proposed PROPERTY. GRADER has secured this Agreement by
grading security required by the City and approved by the City Attorney.
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B. GRADING PLANS forthe grading ofthe PROPERTY have been prepared by
GRADER and approved by the City Engineer. The GRADING PLANS numbered as
referenced previously in this Agreement are on file in the Office of the City Engineer and
are incorporated inta this Agreement by this reference. All references in this Agreement to
the GRADING PLANS sha(I include reference to any specifications for the improvements
as approved by the City Engineer.
C. An estimate of the cost for grading and performing land development work in
connection with the grading according to the GRADING PLANS has been made and has
been approved by the City Engineer. The estimated amount is stated on Page 1 of this
Agreement. The basis for the estimate is attached as Exhibit "A" to this Agreement.
D. CITY has adopted standards for the grading of property within the CITY. The
GRADING PLANS have been prepared in conformance with CITY standards in effect on
the date of the approval.
E. GRADER recognizes that CITY and adjacent properties may be damaged by
GRADER's failure to perform its obligations to complete approved grading by the time
established in this Agreement. CITY shall be entit(ed to all remedies available to it
pursuant to this Agreement and law in the event of a default by GRADER.
NOW, THEREFORE, in consideration of the approval by the City of the GRADING
PLANS, GRADER and C1TY agree as follows:
(1) GRADER's Obligation to Complete Grading.
GRADER shall:
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(a) Complete at GRADER's own expense, all the grading required by the
Approval in conformance with approved GRADING PLANS within one year from date of
execution of this Agreement; provided however,that the grading shall not be deemed to be
completed until approved by City Engineer as provided in Section 4 herein.
(2} Securitv.
GRADER shall at all times guarantee GRADER's performance by furnishing to
CITY, and maintaining, good and sufficient security as required by the CITY on forms
approved by CITY for the purposes and in the amounts as foltows:
(a) to assure faithful performance of this Agreement in regard to said
grading in an amount of 25% of the estimated cost of the grading.
The securities required by this Agreement shall be kept on file with the City Clerk.
The terms of the security documents referenced on page 1 of this Agreement are
incorporated into this Agreement by this reference. If any security is replaced by another
approved security,the replacement shall: 1)comply with all the requirements for security in
this Agreement; 2) be provided to the City Engineer to be filed with the City Cferk and,
upon filing, 3) shall be deemed to have been made a part of and incorporated into this
Agreement. Upon provision of a replacement security with the City Engineer and filing of a
replacement security with the City Clerk, the former security may be released.
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(3) Alterations to GRADING PLANS.
(a) Any changes, alterations or additions to the GRADING PLANS not
exceeding ten percent(10%)of the original estimated cost of the improvements,which are
mutually agreed upon by CITY and GRADER, shall not relieve the improvement security
given forfaithful performance of this Agreement. In the event such changes,alterations,or
additions exceed 10% of the original estimated cost of the improvement, GRADER shall
provide grading security for faithful performance as required by Section (3) of this
Agreement for twenty-five percent (25%) of the total estimated cost of the grading as
changed, altered, or amended, minus any cornpleted partial releases allowed by Section
(6) of this Agreement.
(b) The GRADER shall complete the grading in accordance with CITY
standards in effect at the time of approval of GRADING PLANS. CITY reserves the rightto
modify the standards applicable to the PROPERTY and this Agreement,when necessary
to protect the public safety or welfare or comply with applicable state or federal law or CITY
zoning ordinances. If GRADER requests and is granted an extension of time for
completion of the grading, CITY may apply the standards in effect at the time of the
extension.
(4) Inspection. GRADER shall at all times maintain proper facilities and safe
access for inspection of the grading by CITY inspectors. Upon completion of the work,
GRADER may request a final inspection by the City Engineer, or the City Engineer's
authorized representative. If the City Engineer, or the designated representative,
determines that the work has been completed in accordance with this Agreement,then the
City Engineer shall certify the completian of the grading. When applicable law requires an
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inspection to be made by City at a particular stage of the grading, CITY shall be given
timely notice of GRADER's readiness for such inspection and GRADER shall not proceed
with additional work until the inspection has been made and the work approved. GRADER
shall bear all costs of inspection and certification.
(5) Release of Securities. The securities required by this Agreement shall be
released as following:
(a) Security given for faithful performance of any act, obligation,work or
agresment shall be released upon the final completion and approved of the act or work.
(6) Iniury to Public Improvements, Public Propertv or Public Utilities Facilities.
GRADER shall replace or repair or have replaced or repaired, as the case may be, all
public improvements, public utilities facilities and surveying or property monuments which
are destroyed or damaged as a result of any work under this Agreement. GRADER shall
bearthe entire cost of replacement or repairs of any and all public or public utility property
damaged or destroyed by reason of any work done under this Agreement, whether such
property is owned by the United States or any agency thereof,or the State of California, or
any agency or political subdivision thereof, or by CITY or any public or private utility
corporation or by any combination of such owners. Any repair or replacement shall be to
the satisfaction, and subject to the approval, of the City Engineer.
(7) Permits. GRADER shall, at GRADER's expense, obtain all necessary
permits and licenses for the grading,give al! necessary notices and pay all fees and taxes
required by law.
(8) Default of GRADER.
(a) Default of GRADER shall include, but not be limited to*
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(1) GRADER's failure to timely commence the grading;
(2) GRADER's failure to timely complete grading;
(3) GRADER's failure to timely cure any defect in the grading;
(4)GRADER's failure to perform substantial work for a period of twenty
{20) calendar days after commencement of the work;
(5) GRADER's insolvency, appointment of a receiver, or the filing of
any petition in bankruptcy eithervoluntary or involuntarywhich GRADER fails to discharge
within thirty (30) days;
(6)the commencement of a foreclosure action against the PROPERTY
or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or
(7) GRADER's failure to perform any other obligation under this
Agreement.
(b) CITY reserves to itself all remedies available to it at law or in equityfor
breach of GRADER's obligations under this Agreement. CITY shall have the right, subject
to this Section,to draw upon or utilize the apprapriate security to mitigate CITY's damages
in event of default by GRADER. The right of CITY to draw upon or utilize the security is
additional to and not in lisu of any other remedy available to CITY. It is specifically
recognized that the estimated costs and security amounts may not reflect the actual cost of
grading and, therefore, CITY's damages for GRADER's default shall be measured by the
cost of completing the required grading. The sums provided by the security may be used
by CITY for the completion of the grading in accordance with the GRADING PLANS
contained herein.
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In the event of GRADER's default underthis Agreement, GRADER authorizes CITY
to perform such obligation twenty (20) days after mailing written notice of default to
GRADER and to GRADER's surety, and agrees to pay the entire cost of such
performance by C1TY.
CITY may take over the work and prosecute the same to completion, by contract or
by any ather method CITY may deem advisable, for the account and at the expense of
GRADER, and GRADER's surety shall be liable to CITY for any excess cost or damages
occasioned CITY thereby. In such event, CITY, without liability for so doing, may take
possession of, and utilize in completing the work, such materials, appliances, plants and
other property belonging to GRADER as may be on the site of the work and necessary for
performance of the work.
{c) Failure of GRADER to comply with the terms of this Agreement shall
constitute consent to the filing by CITY of notice of violation against the PROPERTY. The
remedy provided by this subsection (c) is in addition to and not in lieu af other remedies
available to CITY. GRADER agrees that the choice of remedy or remedies for GRADER's
breach shall be in the discretion of CITY.
{d) In the event that GRADER fails to perform any obligation hereunder,
GRADER agrees to pay all costs and expenses incurred by CITY in securing performance
of such obligations, including but nat limited to fees and cha�ges of engineers, attorneys,
other professionals, and court costs.
(e) The failure of CITY to take an enforcement action with respect to a
default, or to declare a breach, shall not be construed as a waiver of that default or breach
or any subsequent default or breach of GRADER.
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(9) GRADER Not Aqent of CITY. Neither GRADER nor any of GRADER's
agents, contractors or subcontractors are or shall be considered to be agents of C(TY in
connection with the perFormance of GRADER'S obligations under this Agreement.
(10) Indemnitv/Hold Harmless. CITY or any officer or employee thereof shall not
be Iiable for any injury to persons or property occasioned by reason of the acts or
omissions of GRADER, its agents, or employees, contractors and subcontractors in the
performance of this Agreement.GRADER further agrees to protect,defend, indemnify and
hold harmless CITY, its officials, boards and commissions, and members thereof, agents
and employees from any and all claims, demands, causes of action, liability or loss of any
sort, because of, or arising out of, acts or omissions of GRADER, its agents, employees,
contractors and subcontractors in the performance of this Agreement, except for such
claims, demands, causes of action, liability,or loss arising out ofthe sole active negligence
of the C(TY, its officials, boards, commissions, the members thereof, agents, and
employees, including all claims,demands, causes of action, liability,or loss because of,or
arising out of, in whole or in part, the design or construction of the improvements. This
indemnification and agreement to hold harmless shall extend to injuries to persons and
damages or taking of property resulting from the grading af the PROPERTY, and in
addition,to adjacent property owners. Approval by CITY of the grading shall not constitute
an assumption by CITY of any responsibility for any damage or taking covered by this
Section. CITY shall not be responsible for the performance of grading, regardless of any
negligent action or inaction taken by CITY in approving the plans, unless the particular
design was specifically required by CITY over written objection by GRADER submitted to
the City Engineer before approval of the particular grading design, which objection
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indicated that the particular grading design was dangerous or defective and suggested an
altemative safe and feasible design.
GRADER shall reimburse CITY for aIl costs and expenses(including but not limited
to fees and charges of architects,engineers,attorneys, and other professionals, and court
costs) incurred by CITY in enforcing the provisions of this Section.
(11) Personal Nature of GRADER'S Obligations. All of GRADER's obligations
under this agreement are and shall remain the personal obligations of GRADER
notwithstanding a transfer of all or any part of the property subject to this Agreement, and
GRADER shall not be entitled to assign its obligations under this Agreement to any
transferee of all or any part of the property within the PROPERTY or to any other third
party without the express written consent of CITY.
(12) Sale or Disposition of PROPERTY. GRADER may request a novation of this
Agreement and a substitution of security. Upon approval of the novation and substitution
of securities,the GRADER may request a release or reduction of the securities required by
this Agreement. Nothing in the novation shall relieve the GRADER of the obligations under
Section (18)for the work or improvement done by GRADER.
(13) Time of the Essence. Time is of the essence in the performance of this
Agreement.
(14) Time for Commencement of Work: Time Extensions. GRADER shall
commence substantial grading required by this Agreement not later than six (6) months
after the date of this Agreement. In the event good cause exists as determined by the City
Engineer,the time for commencement of grading hereunder may be extended for a period
or periods not exceeding a total of two (2) additional years. The extension shall be
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executed in writing by the City Engineer. Any such extension may be granted without
notice to GRADER's surety and shall not affect the validity of this Agreement or release the
surety or sureties on any security given for this Agreement. The City Engineer shall be the
sole and final judge as to whether or not good cause has been shown to entitle GRADER
to an extension. Delay, other than delay in the commencement of work, resulting from an
act of CITY, act of God, or by storm or inclement weather, strikes, boycotts or similar
political actions which prevents the conducting of work, which GRADER could not have
reasonably foreseen and, furthermore,were not caused by or contributed to by GRADER,
shall constitute good cause for and extension of the time for completion. As a condition of
such extension, the City Engineer may require GRADER to fumish new security
guaranteeing performance of this Agreement as extended in an increased amount as
necessary to compensate for any increase in construction costs as determined by the City
Engineer.
(15) No Vesting of Riqhts. Performance by GRADER of this Agreement shall not
be construed to vest GRADER's rights with respect to any change in any zoning or building
law or ordinance.
(16) Notices. All notices required or provided for under this Agreement shall be in
writing and de(ivered in person or sent by mail, postage prepaid and addressed as
provided in this Section. Notice shall be effective on the date it is delivered in person,or, if
mailed, on the date of deposit in the United States mail. Notices shall be addressed as
follows unless a written change of address is �led with the City:
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Notice to CITY: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
Attn: Public Works Director
Notice to GRADER: Marriott Ownership Resorts, Inc.
7400 Shadow Ridge Road
Palm Desert, CA 92211
Notice to SURETY:
(17) Compliance With Laws. GRADER, its agents,employees,contractors and
subcontractors shall comply with all federal, state and local laws in the performance of the
grading required by this Agreement.
(18) Severabilitv. The provisions of this Agreement are severable. If any po�tion
of this Agreement is held invalid by a court of competent jurisdiction,the remainder of the
agreement shall remain in full force and effect unless amended or modified by the mutual
consent of the parties.
(19) Captions. The captions of this Agreement are for convenience and reference
only and shall not define, explain, modify, (imit, exemplify, or aid in the interpretation,
construction or meaning of any provisions of this Agreement.
(20) Litiqation or Arbitration. In the event that suit or arbitration is brought to
enforce the terms of this Agreement,the prevailing party sha(I be entitled to litigation costs
and reasonable attorneys' fees.
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(21) Incorqoration of Recitals. The recitals to this Agreement are hereby
incorporated into in the terms of this Agreement.
(22) Entire Agreement. This Agreement constitutes the entire agreement of the
parties with respect to the subject matter. All modifications,amendments,or waivers of the
terms of this Agreement must be in writing and signed by the appropriate representatives
of the parties.
(23) Interpretation. This Agreement shal� be interpreted in accordance with the
laws of the State of California.
(24) Jurisdiction. Jurisdiction of all disputes over the terms of this Agreement
shall be in the County of Riverside, State of California. .
IN W(TNESS WHEREOF,this Agreement is executed by the parties as of the date
hereinabove first written; by CITY, by and through its Mayor.
- CITY OF PALM DESERT
GRADER
By:
GRADER MAYOR
(Proper Notarization of
GRADER's signature is
required and shall be attached)
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C:\Documents and Settinga\Robert.Hargreavee\My Documents\PALM DESERT - Grading Agreement.dt>c
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ATTEST:
CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY
-13-
C:\Documents and Settings\Robert.Hargreaves\My Documents\PALM DESERT - Grading Agreement.doc
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STATE OF CALIFORNIA )
) ss
COUNTY OF RIVERSIDE )
On �0�� � .��a�l ,�20 D�"before me, a Notary Public in and for said State,
personally appeared'�'�^(z.. �,p�,�,�,n�, personally known to me (or proved to me on
the basis of satisfactory evidence)to be the person{s)whose name(s)is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s)acted,executed
the instrument.
WITNESS hand and official seal.
IbA EI.Ui C D�
c�.��o
Ma'fAR1►PtIlLIC•CAt�'Otl�W1�
NOTARY UBLIC ��co�u,Yr�r�o
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C:'�Documents and Settings\Robert.Hargreaves�My Documents\PALM DESERT - Grading Agreement.doc
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