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2003 09 16 RDARedevelopment Agency Agendas are Available on the City's Web Page @a www.la-quinta.org REDEVELOPMENT AGENCY AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting Tuesday, September 16, 2003 - 2:00 P.M. Beginning Resolution No. RA 2003-16 CALL TO ORDER Roll Call: Agency Board Members: Adolph, Osborne, Perkins, Sniff, and Chairperson Henderson PUBLIC CbMMENT At this time, members of the public may address the Redevelopment Agency on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. Please watch the timing device on the podium. CLOSED SESSION NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session discussions during the dinner recess. In addition, persons identified as negotiating parties are not invited into the Closed Session meeting when the Agency is considering acquisition of real property. 1. CONFERENCE WITH THE AGENCY'S LEGAL COUNSEL REGARDING- INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(c) - ONE MATTER. 0 Redevelopment Agency Agenda 1 September 16, 2003 2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, MARK WEISS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF A PORTION OF 525 ± ACRES LOCATED AT THE SOUTHWEST CORNER OF AVENUE 52 AND JEFFERSON STREET. PROPERTY OWNER/NEGOTIATOR: JOHN FOSTER RECONVENE AT 3:00 P.M. PUBLIC COMMENT At this time members of the public may address the Agency Board on items that appear within the Consent Calendar or matters that are not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. When you are called to speak, please come forward and state your name for the record. Please watch the timing device on the podium. For all Agency Business Session matters or Public Hearings on the agenda, a completed "request to speak" form should be filed with the City Clerk prior to the Agency beginning consideration of that item. CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1. APPROVAL OF MINUTES OF AUGUST 19, 2003. CONSENT CALENDAR NOTE: Consent Calendar items are considered to be routine in nature and will be approved by one motion. 1. APPROVAL OF DEMAND REGISTERS DATED SEPTEMBER 2, AND SEPTEMBER 16, 2003. 2. TRANSMITTAL OF TREASURER'S REPORT DATED JULY 31, 2003. 3. TRANSMITTAL OF REVENUE AND EXPENDITURES REPORT DATED JULY 31, 2003. 4. APPROVAL OF A MONTH -TO -MONTH LEASE BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND MDS CONSULTING FOR AGENCY -OWNED PROPERTY LOCATED AT 79-799 OLD AVENUE 52. 5. APPROVAL OF A LEASE AGREEMENT WITH KSL FOR A PORTION OF SILVERROCK RANCH. + 5 Redevelopment Agency Agenda 2 September 16, 2003 6. APPROVAL OF A "PROFESSIONAL SERVICES AGREEMENT WITH KEITH COMPANIES TO PROVIDE CIVIL ENGINEERING SERVICES FOR SILVERROCK RANCH. 7. APPROVAL OF APPROPRIATION OF FUNDS FOR, AWARD OF CONTRACT TO CONSTRUCT THE AVENIDA LA FONDA STREET ENHANCEMENTS, PROJECT NO. 2002-05. BUSINESS SESSION 1. CONSIDERATION OF FINAL GOLF COURSE ROUTING PLAN FOR SILVERROCK RANCH. A. MINUTE ORDER ACTION 2. CONSIDERATION OF INTERVIEW SCHEDULE FOR PUBLIC RELATIONS/MARKETING SERVICES FOR SILVERROCK RANCH. A. MINUTE ORDER ACTION 3. CONSIDERATION OF A REQUEST FOR PROPOSALS FOR CONSTRUCTION MANAGEMENT SERVICES FOR SILVERROCK RANCH. A. MINUTE ORDER ACTION 4. CONSIDERATION OF ADOPTING A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY ACCEPTING AND APPROVING A PRELIMINARY PLAN FOR LA QUINTA REDEVELOPMENT AGENCY PROJECT AREA NO. 2. A. RESOLUTION ACTION STUDY SESSION 1. DISCUSSION OF WATER MANAGEMENT PLAN AND CONCEPTUAL GRADING AND DRAINAGE PLAN FOR SILVERROCK RANCH. CHAIR AND BOARD MEMBERS' ITEMS - NONE PUBLIC HEARINGS - NONE 3 Redevelopment Agency Agenda 3 September 16, 2003 ADJOURNMENT Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on October 7, 2003, commencing with closed session at 2:00 p.m. and open session at 3:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta Redevelopment Agency meeting of Tuesday, September 16, 2003, was posted on the outside entry to the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the La Quinta Chamber of Commerce and at Stater Bros. 78-630 Highway 1 1 1, on Friday, September 12, 2003. DATED: September 12, 2003 JUNE S. GREEK, CIVIC, City Clerk City of La Quinta, California Redevelopment Agency Agenda 4 September 16, 2003 4 COUNCIL/RDA MEETING DATE: SEPTEMBER 16, 2003 ITEM TITLE: Demand Register Dated September 2, 2003 RECOMMENDATION: It is recommended the Redevelopment Agency Board: AGENDA CATEGORY: BUSINESS SESSION CONSENT CALENDAR STUDY SESSION PUBLIC HEARING Receive and File the Demand Register Dated September 2, 2003 of which $80,243.00 represents Redevelopment Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA 5 C&14f 4 AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: SEPTEMBER 16, 2003 ITEM TITLE: Demand Register Dated September 16, 2003 RECOMMENDATION: It is recommended the Redevelopment Agency Board: BUSINESS SESSION CONSENT CALENDAR STUDY SESSION PUBLIC HEARING Receive and File the Demand Register Dated September 16, 2003 of which $6,401,060.83 represents Redevelopment Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA �6 COUNCIL/RDA MEETING DATE: September 16, 2003 ITEM TITLE: Transmittal of Treasurer's Report as of July 31, 2003. RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and file. AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA T a 41t4t 4 COUNCIL/RDA MEETING DATE: September 16, 2003 Transmittal of Revenue and Expenditure Report dated July 31, 2003 RECOMMENDATION: Receive and File BACKGROVND AND OVERVIEW: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Transmittal of the July 31, 2003 Statement of Revenue and Expenditures for the La Quinta Redevelopment Agency. Respectfully submitted: AJ n M. Falconer, Ainance Director ove for submission b . Thomas P. Genovese, Executive Director Attachments 1 : Revenue and Expenditures and Report, July 31, 2003 0 ATTACHMENT 1 LA QUINTA REDEVELOPMENT AGENCY REMAINING % REVENUE SUMMARY BUDGET RECEIVED BUDGET RECEIVED PROJECT AREA NO.1: DEBT SERVICE FUND: Tax Increment 20,744,336.00 0.00 20,744,336.00 0.000% Allocated Interest 66,000.00 0.00 66,000.00 0.000% Non Allocated Interest 0.00 1.06 (1.06) 0.000% Interst - County Loan 0.00 0.00 0.00 0.000% Interest Advance Proceeds 967,182.00 0.00 967,182.00 0.000% Transfers In 1,731,455.00 0.00 1,731,455.00 0.000% TOTAL DEBT SERVICE 23,508,973.00 1.06 23,508,971.94 0.000% CAPITAL IMPROVEMENTFUND: Pooled Cash Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 437,100.00 20,260.18 416,839.82 4.640% Litigation Settlement Revenue 0.00 0.00 0.00 0.000% Loan Proceeds 0.00 0.00 0.00 0.000% Rental Income 0.00 1,132.40 (1,132.40) 0.000% Transfers In 0.00 • 0.00 0.00 0.000% TOTAL CAPITAL IMPROVEMENT 437,100.00 21,392.58 415,707.42 4.890% LOW/MODERATE TAX FUND: Tax Increment 5,186,684.00 0.00 5,186,084.00 0.000% Allocated Interest 4,400.00 0.00 4,400.00 0.000% Non Allocated Interest 0.00 0.00 0.00 0.000% Miscellaneous revenue 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 0.00 0.00 0.000% LQRP-Rent Revenue 341,000.00 31,277.00 309,723.00 9.170% Home Sales Proceeds 150,000.00 79,970.05 70,029.95 53.310% Sale of Land 0.00 0.00 0.00 0.000% Sewer Subsidy Reimbursements 0.00 22,055.10 (22,055.10) 0.000% Rehabilitation Loan Repayments 0.00 286.21 (286.21) 0.000% Transfer In 0.00 0.00 0.00 0.000% TOTAL LOWIMOD TAX 5,681,484.00 133,588.36 5,547,895.64 2.350% LOW/MODERATE BOND FUND: Allocated Interest 0.00 0.00 0.00 0.000% Home Sale Proceeds 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 0.00 0.00 0.000% Transfer In 0.00 0.00 0.00 0.000% TOTAL LOW/MOD BOND 0.00 0.00 0.00 0.000% 2 LA QUINTA REDEVELOPMENT AGENCY 07/01/2003 - 7/31/03 REMAINING EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET PROJECT AREA NO. 1: DEBT SERVICE FUND: SERVICES 394,585.00 0.00 0.00 394,585.00 BOND PRINCIPAL 1,643,831.00 0.00 0.00 1,643,831.00 BOND INTEREST 7,927,253.00 0.00 0.00 7,927,253.00 INTEREST CITY ADVANCE 967,182.00 80,598.50 0.00 886,583.50 PASS THROUGH PAYMENTS 9,959,701.00 352,414.00 0.00 9,607,287.00 ERAF SHIFT 4,000,000.00 0.00 0.00 4,000,000.00 TRANSFERS OUT 0.00 0.00 0.00 0.00 TOTAL DEBT SERVICE 24,892,552.00 433,012.50 0.00 24,459,5 CAPITAL IMPROVEMENT FUND: PERSONNEL 4,900.00 548.82 0.00 4,351.18 SERVICES 116,319.00 5,814.25 0.00 110,504.75 LAND ACQUISITION 0.00 0.00 0.00 0.00 ASSESSMENT DISTRICT 0.00 0.00 0.00 0.00 ADVERTISING -ECONOMIC DEV 0.00 0.00 0.00 0.00 ECONOMIC DEVELOPMENT 187,000.00 0.00 0.00 187,000.00 BOND ISSUANCE COSTS 0.00 0.00 0.00 0.00 CAPITAL - BUILDING 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 1,225,208.00 102,100.50 0.00 1,123,107.50 TRANSFERS OUT 26,920,769.39 250,431.39 0.00 26,670,338.00 TOTAL CAPITAL IMPROVEMENT 28,454,196.39 358,894.96 0.00 28,095,301.4N- LOW/MODERATE TAX FUND: PERSONNEL 4,900.00 548.82 0.00 4,351.18 SERVICES 250,497.00 5,248.00 0.00 245,249.00 BUILDING HORIZONS 210,000.00 0.00 0.00 210,000.00 LQ RENTAL PROGRAM 150,000.00 14,439.31 0.00 135,560.69 LQ HOUSING PROGRAM 1,142,076.00 524,956.00 0.00 617,120.00 LOWMOD VILLAGE APARTMENTS 2,350,000.00 0.00 0.00 2,350,000.00 LQRP - REHABILITATION 500,000.00 0.00 0.00 500,000.00 APT REHABILITATION 350,000.00 0.00 0.00 350,000.00 FORECLOSURE ACQUISITION 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 82,595.00 6,882.92 0.00 75,712.08 TRANSFERS OUT 2,398,079.46 0.00 0.00 2,398,079.46 TOTAL LOWIMOD TAX 7,4 ,14 .46 55 ,0 .05 0.00 6,886,072.41 LOW/MODERATE BOND FUND PERSONNEL SERVICES REIMBURSEMENT TO GEN FUND HOUSING PROJECTS TRANSFERS OUT TOTAL LOW/MOD BOND 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10 3 LA QUINTA REDEVELOPMENT AGENCY REMAINING % REVENUE SUMMARY BUDGET RECEIVED BUDGET RECEIVED PROJECT AREA NO.2: DEBT SERVICE FUND: Tax Increment 9,723,411.00 0.00 9,723,411.00 0.000% Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 0.09 (0.09) 0.000% Interest Advance Proceeds 863,674.00 0.00 863,674.00 0.000% Transfer In 3,442,855.00 0.00 3,442,855.00 0.000% TOTAL DEBT SERVICE 14,029,940.00 0.09 14,029,939.91 0.000% CAPITAL IMPROVEMENTFUND: Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 0.00 0.00 0.000% Developer Agreement 0.00 0.00 0.00 0.000% Transfers In 0.00 0.00 0.00 0.000% TOTAL CAPITAL IMPROVEMENT 0.00 0.00 0.00 0.000% LOWIMODERATE TAX FUND: Tax Increment 2,430,853.00 0.00 2,430,853.00 0.000% Allocated Interest 7,400.00 0.00 7,400.00 0.000% Non Allocated Interest 20,000.00 0.00 20,000.00 0.000% Developer funding 7,054,074.00 0.00 7,054,074.00 0.000% ERAF Shift - Interest 0.00 0.00 0.00 0.000% Sale of Land 0.00 0.00 0.00 0.000% Transfer In 0.00 0.00 0.00 0.000% TOTAL LOWIMOD TAX 9,512,327.00 0.00 9,512,327.00 0.000% LOWIMODERATE BOND FUND: Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 400,000.00 0.00 400,000.00 0.000% Bond proceeds (net) 39,150,000.00 0.00 39,150,000.00 0.000% Transfer In 0.00 0.00 0.00 0.000% TOTAL LOWIMOD BOND 39,550,000.00 0.00 39,550,000.00 0.000% 11 4 LA QUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO, 2: DEBT SERVICE FUND: 07/01/2003 - 7/31/03 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET SERVICES 229,013.00 0.00 0.00 229,013.00 BOND PRINCIPAL 176,169.00 0.00 0.00 176,169.00 BOND INTEREST 578,895.00 0.00 0.00 578,895.00 INTEREST CITY ADVANCE 957,800.00 79,816.63 0.00 877,983.37 INTEREST - ERAF L/MOD LOAN 0.00 0.00 0.00 0.00 PASS THROUGH PAYMENTS 8,227,557.00 0.00 0.00 8,227,557.00 TRANSFERS OUT 0.00 0.00 0.00 TOTAL DEBT SERVICE 10,169,434.00 79,81 .63 0.00 10,08 ,617.37 CAPITAL IMPROVEMENT FUND: PERSONNEL 2,900.00 332.12 0.00 2,567.88 SERVICES 78,544.00 3,503.25 0.00 75,040.75 ADVERTISING -ECONOMIC DEV 0.00 0.00 0.00 ECONOMIC DEVELOPMENT ACTIVITY 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 34,509.00 2,875.58 0.00 31,633.42 TRANSFERS OUT (36,670.14) (5,500.00) 0.00 (31,170.14 TOTAL CAPITAL IMPROVEMENT 79,282.86 1,210.95 0.00 78,071.91 LOW/MODERATE TAX FUND: PERSONNEL 2,900.00 332.12 0.00 2,567.88 SERVICES 127,171.00 2,952.00 0.00 124,219.00 2nd Trust deeds 150,000.00 0.00 0.00 150,000.00 2nd trust deeds from Centerpointe 2,520,000.00 0.00 0.00 2,520,000.00 48th and Adams - from Centerpointe 1,423,203.00 0.00 0.00 1,423,203.00 Low Mod Housing Project 489,592.00 0.00 0.00 489,592.00 47th Adams Project 480,000.00 0.00 0.00 480,000.00 FORECLOSURE ACQUISITION 150,000.00 0.00 0.00 150,000.00 REIMBURSEMENT TO GEN FUND 71,988.00 5,999.00 0.00 65,989.00 TRANSFERS OUT 5,480,688.99 0.00 0.00 5,480,688.99 TOTAL LOW/MOD TAX 10,895,542.99 9,283.12 0.00 10,886,259.87 LOW/MODERATE BOND FUND 2nd TRUST DEEDS LAND BOND ISSUANCE COSTS TRANSFERS OUT TOTAL LOWIMOD BOND 7,000,000.00 0.00 0.00 7,000,000.00 31,000,000.00 0.00 0.00 31,000,000.00 1,500,000.00 0.00 0.00 1,500,000.00 0.00 0.00 0.00 0.00 39,500,000.00 0.00 0.00 39,500,000. 14 5 ri � 5 V OF 9 COUNCIL/RDA MEETING DATE: September 16, 2003 ITEM TITLE: Approval of a Month -to -Month Lease By and Between the La Quinta Redevelopment Agency and MDS Consulting for Agency -Owned Property Located at 79-799 Old Avenue 52 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Authorize the Executive Director to execute a lease amendment for a month -to -month lease by and between the La Quinta Redevelopment Agency and MDS Consulting for Agency -owned property located at 79-799 Old Avenue 52. FISCAL IMPLICATIONS: The original lease term was from October 1, 2002 through August 31, 2003. During that time, the Agency collected a total of $12,456.40 in net rent (or $1,132.40 per month). Although the exact construction schedule is unknown at this time, it is anticipated that Phase 1 construction activities will begin in early 2004. Extension of the MDS lease is anticipated to generate additional rental income of approximately $4,529.60 to $6,794.40. BACKGROUND AND OVERVIEW: MDS Consulting occupies a 1,670 square foot structure located on the Agency's SilverRock Ranch property. MDS Consulting has occupied this space for the past six years and desires to remain at this location on a month -to -month basis until construction activities begin on SilverRock Ranch. In August 2002, the Agency approved a one-year lease with MDS Consulting (Attachment 1). Staff proposes that a month -to -month lease be established with MDS Consulting, maintaining the same terms, conditions, and lease rate from the original lease agreement. The City Attorney is drafting a lease amendment stating that MDS 13 Consulting's tenancy will run from month -to -month, requiring MDS Consulting to give a 30-day notice prior to vacating, and stating that the RDA will give MDS no less than a 30-day notice prior to commencement of construction activities. It is anticipated that the lease amendment will be ready for signatures by September 19, 2003. FINDINGS AND ALTERNATIVES: The alternatives available to the RDA Board include: 1. Authorize the Executive Director to execute a lease amendment for a month -to - month lease by and between the La Quinta Redevelopment Agency and MDS Consulting for Agency -owned property located at 79-799 Old Avenue 52; or 2. Do not authorize the Executive Director to execute a lease amendment for a month -to -month lease by and between the La Quinta Redevelopment Agency and MDS Consulting for Agency -owned property located at 79-799 Old Avenue 52; or 3. Provide staff with alternative direction. Respectfully submitted, Mark Weiss, Assistant Executive Director Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Lease with MDS Consulting 2 1.1 ATTACHMENT 1 LEASE AGREEMENT BULL BARN THIS LEASE AGREEMENT (the "Lease") is made effective the /V-1 day of 2002 (the "Effective Date"), by and between THE LA QUINTA DEVELOPMENT AGENCY, a public body, corporate and politic ("Landlord") and MDS CONSULTING, a California corporation, whose principal place of business is located at 17320 Redhill Avenue, Suite 350, Irvine, California 92614 ("Tenant"). RECITALS A. Landlord is the owner of that certain real property located in the City of La Quinta, County of Riverside, State of California, more commonly known as 79-799 Old Avenue 52, located in the City of La Quinta, County of Riverside, State of California and more particularly set forth in Exhibit "A", attached hereto and incorporated herein (the "Land'j; and (ii) certain improvements on the Land consisting of a building containing 1,670 square feet of space, commonly known as the "Ahmanson Ranch Bull Barn", located on the Land, and the non- exclusive right to use in common with others, various associated parking areas, driveways and walkways on the Land (the "Improvements"). The Land and the Improvements may hereinafter be referred to together as the "Leased Premises" and the Leased Premises are more particularly depicted on Exhibit `B", attached hereto and incorporated herein. B. Tenant is engaged in the business of mapping, surveying and other land planning services. C. Landlord desires to lease to Tenant and Tenant desires to lease from Landlord the Leased Premises on the terms and conditions hereinafter set forth. AGREEMENT NOW, THEREFORE, in consideration of the mutual agreements set forth herein, Landlord and Tenant agree as follows: ARTICLE I Leased Premises 1.1 Leased P remises. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Leased Premises, together with the right to use in common with others the parking areas, driveways and walkways located on the Land, upon the terms and conditions stated in this Lease. Tenant hereby covenants and warrants that Tenant shall comply with all applicable laws, rules and regulations, including, without limitation, Landlord's and the City of La Quinta's rules and regulations, in connection with its operations on the Land. 619/015610-0048 3 304265.06 R09/10/02 1.2 Conditions of Leased Premises: "AS -IS" Provision. Tenant acknowledges that it has had an adequate opportunity to inspect the Leased Premises and to investigate its physical characteristics and conditions, and hereby waives any and all objections to the physical characteristics and conditions of the Leased Premises. Tenant acknowledges that Landlord has not made any representations, warranties or agreements to or with Tenant as to any matters concerning the Leased Premises, the present use thereof, or the suitability of Tenant's intended use of the Leased Premises. The foregoing disclaimer includes, without limitation, topography, climate, air, water rights, utilities, present and future zoning, soil, subsoil, existence of hazardous waste or similar substances, purposes to which the Leased Premises is suited, drainage or access to public roads. Tenant further acknowledges and agrees that the Leased Premises is to be leased and accepted by Tenant in its present condition, "AS -IS", and that no patent or latent physical condition of the Leased Premises, whether or not known or discovered, shall affect the rights of either party hereto. Tenant has investigated and has knowledge of operative or imposed governmental laws and regulations (including, but not limited to, zoning, environmental, including specifically the regulations of the Environmental Protection Agency, and land use laws and regulations) to which the Leased Premises may be subject, and is leasing the Leased Premises on the basis of its review and determination of the application and effect of such laws and regulations. Tenant has neither received nor relied upon any representations concerning such laws and regulations made by Landlord or any person acting under or on behalf of Landlord. Any agreements, warranties or representations not expressly contained in this Lease shall in no way bind Landlord. 1.3 "Post -Acquisition" Status of Tenant. Tenant acknowledges that it is a post - acquisition tenant, and that further acknowledges that the Landlord plans to redevelop the subject property. Tenant hereby waives, relinquishes, and discharges any and all rights or claims for relocation assistance or related benefits or loss of goodwill under any applicable law, including, but not limited to California Government Code Section. 7260 et seq. and the State Relocation Assistance and Real Property Acquisition, 25 C.F.R. 6000 et seq., - or the comparable federal relocation laws and regulations, or for inverse condemnation. ARTICLE II Lease Term 2.1 Term. The Term of this Lease shall be for a period of one year commencing October 1, 2002 and ending August 31, 2003, unless sooner terminated as provided herein (the "Term'). Notwithstanding the foregoing and anything contained herein to the contrary, Landlord shall h ave the r ight t o t erminate t his Lease, w ith o r w ithout c ause, b y providing T enant w ith thirty (30) days written notice to cancel. Upon such termination, Tenant shall surrender the Leased Premises, in accordance with the provisions contained in Section 8.1 hereof, no later than the effective date of termination. 16 619/015610-" 4 3M65.06 a09/10/M ARTICLE III Rent and Operating Expenses 3.1 Rent. Beginning October 1, 2002 and continuing throughout the Term, Tenant shall pay to Landlord Net Rent in the amount of One Thousand Thirty Two and 40/ 100 Dollars ($1,132.40) (the 'Net Rent') at Landlord's address as provided by Section 15.7 below. Net Rent and Deductible Operating Expenses for any period during the term hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said month. Lessee shall pay to Landlord the Net Rent in advance on the first (1") day of each month without notice or demand from Landlord. Landlord and Lessee hereby acknowledge and agree that the Net Rent is calculated based on the following calculations. The monthly "Gross Rent" equals the product of One Dollar and Thirty Cents ($1.30) for every square foot of Leased Premises, for a total of Two Thousand One Hundred Seventy One Dollars ($2,171.00). The "Net Rent" is equal to the sum of the Gross Rent, minus Deductible Operating Expenses (as hereinafter defined). Tenant shall be entitled to deduct from the monthly Gross Rent payable to Landlord those Deductible Operating Expenses reasonably expended by Tenant for electricity, solid waste disposal, pest control, landscaping, and weekly cleaning expenses (collectively, "Deductible Operating Expenses"), in an amount not to exceed One Thousand Thirty Eight and 60/100 Dollars ($1,038.60). Accordingly, Net Rent equals the sum of $2,171.00, minus $1,038.60, or the amount of $1,132.40. 3.2 Late Charges. Tenant hereby acknowledges that late payment by Tenant of Net Rent w ill c ause Landlord t o i ncur c osts n of c ontemplated b y t his Lease, t be a xact a mount o f which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges that may be imposed upon Landlord by any lender. Accordingly, if any Net Rent shall not be received by Landlord within fifteen (15) days after such amount shall be due, then, without any requirement for notice by Landlord, Tenant shall pay to Landlord a one-time late charge equal to ten percent (10%) of each such overdue amount or One Hundred Dollars ($100.00), whichever is greater. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of such late payment. Acceptance of such late charge by Landlord shall in, no event constitute a waiver of Tenant's default or breach with respect to such overdue amount, nor prevent the exercise of any other rights or remedies granted hereunder. In the event a late charge is payable hereunder, whether or not collected, for three (3) consecutive installments. of Net Rent, then notwithstanding any other provision of this Lease to the contrary, Gross Rent, shall, at Landlord's option, become due and payable quarterly in advance, with subsequent abatement of Deductible Operating Expenses. 3.3 Operating. Expenses: Tenant shall be responsible for payment of any and all costs, charges and expenses for all utilities and related services provided to or for the Leased Premises, whether billed directly or indirectly to Tenant or Landlord including, but not limited to, telephone, water, gas, electricity, cable television, landscaping, cleaning expenses, solid waste disposal, and pest control (collectively, the "Operating Expenses'). In addition to the indemnity 1'7 619/015610-0048 5 304265.06 s09/10/02 provided to Landlord in Section 14.1 herein, Tenant shall indemnify and hold Landlord harmless from and against any loss, cost, charge, expense or damage with respect thereto. 3.4 Personal Property Taxes; Possessory Interest Tax. During the Term, Tenant shall pay all taxes assessed against and levied upon fixtures, furnishings, equipment, and all other personal property of Tenant contained on the Land or in the Leased Premises prior to delinquency, and when possible Tenant shall cause these fixtures, furnishings, equipment, and other personal property to be assessed and billed separately from the real property of Landlord. If any of Tenant's fixtures, furnishings, equipment, and other personal property is assessed and taxed with Landlord's real property, Tenant shall pay to Landlord Tenant's share of the taxes within ten (10) days after delivery to Tenant by Landlord of a statement in writing setting forth the amount of the taxes applicable to Tenant's property. Furthermore, in accordance with California Revenue & Taxation Code § 107.6, Tenant hereby acknowledges that the possessory interest granted herein may be a taxable interest and, Tenant's obligations with respect to the payment of any and all costs associated with Tenant's use of the Leased Premises shall include, without limitation, the obligation to pay any such possessory interest tax. 3.5 Landlord Contact Person. During the Term, Tenant shall direct all questions, concerns, and correspondence regarding repairs or other issues relating to this Lease to Landlord's representative, Frank J. Spevacek, at the address set forth in Section 15.7 herein. ARTICLE IV Occupancy 4.1 Quiet Enjoyment. Provided that no default or condition described in Section 13.1 has occurred and is continuing, and subject to performance by Tenant of all of the covenants and provisions of this Lease to be performed by Tenant, Tenant shall have during the Term peaceful and quiet use and possession of the Leased Premises without hindrance on the part of Landlord. 4.2 Use of Leased Premises. Tenant may use the Leased Premises for general office purposes and for no other purpose unless approved in writing by Landlord, which approval may be granted or denied in Landlord's sole and absolute discretion. 4.3 Compliance with Law. Tenant shall not at any time use or occupy the Leased Premises, or permit any act or omission in or about the Leased Premises in violation of any law, statute, ordinance or any governmental rule, regulation or order (collectively, "Law") and Tenant shall, upon written notice from Landlord, discontinue any use of the Leased Premises or the Land which is a violation of Law. At all times during the Term, at Tenant's own expense, Tenant shall conform to and comply with the Law and any requirements of applicable insurance policies now or hereafter in force, affecting the use or occupancy of all or any part of the Leased Premises or the Land. Without limiting the foregoing, there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the use, occupancy, tenure, or enjoyment of the Leased Premises, nor shall Tenant, or any person claiming under or through Tenant, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of any persons in the Leased Premises. 619/015610-0048 304265.06 s09/10/02 4.4 Hazardous Materials. As used herein, the term "Hazardous Material" means any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California or the United States Government, including, without limitation, (i) any material or substance which is defined or listed as a "hazardous waste, extremely hazardous w aste, restricted hazardous waste," "hazardous substance" or "hazardous material" under any federal, state or local law, statute, ordinance or any governmental rule, regulation or order governing or in any way relating to the release, use, generation, handling, leakage, dumping, discharge or disposal of any of the above (collectively, "Hazardous Material Laws") (ii) petroleum or any petroleum derivative, (iii) any flammable explosive or radioactive material, (iv) any polychlorinated biphenyl and (v) asbestos or any asbestos containing material or derivative. Tenant hereby agrees that (i) Tenant and each of its affiliates, assignees, subtenants, and their respective agents, servants, employees, representatives and contractors shall not bring onto the Leased Premises or the Land any Hazardous Material, (ii) Tenant shall immediately notify Landlord in writing in the event Tenant becomes aware of or suspects that there has been any release of any Hazardous Material in, on or about the Leased Premises or the Land or that any person has stored or otherwise brought onto the Leased Premises or the Land or any portion thereof any Hazardous Material. Tenant agrees to indemnify, defend (with counsel reasonably approved by Landlord), protect and hold Landlord and each of its affiliates, and each and every officer, director, employee, attorney, agent and representative of Landlord (collectively, the "Landlord Parties") harmless from and against any and all claims, actions, administrative proceedings (including informal proceedings), judgments, damages to person or property, punitive damages, penalties, fines, costs, liabilities, interest or losses, including reasonable attorneys' fees and expenses, consultant fees, and expert fees, together with all other costs and expenses of any kind or nature (hereinafter collectively "Claims") resulting directly or indirectly from or in connection with the presence, handling, storage, release or discharge of any Hazardous Material that (i) first occurred after Landlord's delivery of possession of the Leased Premises to Tenant and prior to expiration or sooner termination of the Lease term; or (ii) was caused or contributed to by' Tenant, its affiliates and/or their respective agents, servants, employees, representatives and/or contractors. Each of the covenants and agreements of the parties set forth in this Section 4.4 shall survive the expiration or earlier termination of this Lease. 4.5 Conduct on Leased Premises. Tenant shall not do, or permit anything to be done, in or on the Leased Premises, which in any way will (a) increase the rate of fire insurance on the Leased Premises; (b) invalidate or conflict with the fire insurance policies on the Leased Premises or fixtures or on personal property kept therein; (c) obstruct or interfere with the rights of Landlord or Landlord's other tenants on the Land; (d) subject Landlord to any liability for injury to persons or damage to property; or (e) interfere with the good order of the Leased Premises or the Land. 4.6 Leased Premises - Loss. Damage. Landlord shall not be liable under this Lease to Tenant for injuries to person or damage to property occurring an the Land and the Leased Premises or to any persons thereon, including, without limitation: (a) a loss of property by theft or burglary, including property placed in the custody of Landlord's employees; (b) damage or injury to person or property on the Leased Premises from the use of any utility on the Leased Premises; (c) any damage or injury caused by action of the natural elements; or (d) damage or injury resulting from (i) the conduct of Tenant, Tenant's contractors, licensees or invitees, 19 619rois610-Do48 7 304265.06 a09/10/02 whether negligent or otherwise, or (ii) any other act, event or occurrence in or about the Leased Premises other than the grossly negligent or intentional acts of Landlord or Landlord's employees, contractors, licensees or invitees. Tenant shall not make any claim against Landlord for any loss or damage described in this Section. ARTICLE V Transfers 5.1 Assigment and Subletting. Tenant shall not have the right to sublet the Leased Premises, or any portion thereof, or to assign or mortgage Tenant's interest in this Lease, or any portion thereof, without the prior written consent of Landlord, which consent may be withheld in Landlord's sole and absolute discretion. In the case of any such subletting or assignment approved by Landlord, Tenant shall remain fully obligated to Landlord for the performance of all terms and conditions of this Lease. Notwithstanding the foregoing, Landlord may, without Tenant's consent, assign this lease to any of its affiliates, successors or assigns. ARTICLE VI Parkin 6.1 Parking. Tenant's lease of the Leased Premises includes the non-exclusive right to use, in common with others, the adjacent automobile parking areas, driveways, access roads and footways. ARTICLE VII Maintenance and Alterations 7.1 Maintenance by Tenant. Tenant, at its expense, will be responsible for the routine maintenance and upkeep of the Leased Premises, including but not limited to, maintenance of indoor sprinklers, plumbing, HVAC equipment and other appliances, electrical, lighting facilities (including the replacement of light bulbs), boilers, pressure vessels, fixtures, interior walls, interior surfaces of exterior walls, ceilings, floors, windows, doors, plate glass, skylights, and other minor building repairs. In addition, Tenant shall paint the exterior or interior surfaces of exterior walls, when necessary, as determined by Landlord in its reasonable discretion. Tenant shall keep the Leased Premises in good and clean order and reasonable condition, fit for its intended use. Tenant will not do, and will take reasonable steps to prevent Tenant's employees, contractors, invitees and guests from doing, any act or things which might in any manner impair the v alue o r u sefulness of t he Leased P remises o r a ny p art t hereof, o r c ommit o r p ermit a ny waste of the Leased Premises or any part thereof. 7.2 Maintenance by Landlord. Landlord agrees to make all major repairs to the Leased Premises, including maintenance of the foundations, exterior walls, structural condition of interior bearing walls, exterior roof, fire sprinkler system, fire alarms and smoke detection systems not located on or in the Leased Premises, fire hydrants, parking lots, walkways, replacement of HVAC and utility systems, repair of the well and septic system, and other major 6191015610-0049 UM265.06 a09/10/02 40 8 building repairs beyond normal maintenance, to be determined by Landlord in its reasonable discretion. Notwithstanding the foregoing, any major repair that is necessitated by the negligent or intentional act(s) of Tenant, its affiliates, invitees, guests, agents, employees, or contractors shall be repaired or maintained by Tenant or its designee at Tenant's sole cost and expense. If Tenant does not commence and complete such repairs within a reasonable time frame, Landlord may commence, continue, or complete such repairs at Tenant's cost and expense, payable by Tenant upon demand therefor by Landlord. 7.3 Alterations by Tenant. Tenant may not make any additions, alterations or changes to t he L eased P remises w ithout t he p rior w ritten c onsent o f Landlord, which c onsent m ay b e withheld in Landlord's sole and absolute discretion. ARTICLE VIII Surrender of Leased Premises 8.1 Surrender. Upon expiration of the Term, or any earlier termination of this Lease, Tenant shall surrender to Landlord the Leased Premises, including all alterations, improvements and other additions made by Landlord or Tenant, in good order, condition, and repair, reasonable wear and tear excepted. Notwithstanding the foregoing, upon Landlord's written request therefor, which request will itemize the articles to be removed, Tenant shall at Tenant's expense promptly remove or cause to be removed from the Leased Premises or the Land all debris, along with only those articles of furniture, equipment, and trade fixtures, free-standing cabinet work and other articles of any other persons claiming under Tenant, itemized on Landlord's written request for removal, subject to the provisions of Section 8.2 below. Tenant shall repair all damage to the Leased Premises or the Land resulting from such removal, which repair shall include the patching and filling of holes and repair of structural damage. In the event that Tenant shall fail to comply with the provisions of this Section 8.1, Landlord may make such repairs and the cost thereof shall be payable by Tenant upon demand. If requested by Landlord, Tenant shall execute, acknowledge and deliver to Landlord an instrument in writing releasing and quitclaiming to Landlord all right, title and interest of Tenant in and to the Leased Premises by reason of this Lease or otherwise. 8.2 Affixed Propeg,,rty_. All fixtures, equipment, alterations, additions, improvements and/or appurtenances attached to or built into the Leased Premises prior to or during the term hereof, whether by Landlord at its expense or at the expense of Tenant or both, shall be and remain part of the Leased Premises and shall belong to Landlord unless otherwise expressly provided for in this Lease or unless such removal is required and designated in writing by Landlord pursuant to the provisions of Section 8.1 hereof. Such fixtures, equipment, alterations, additions, improvements and/or appurtenances shall include, without limitation, floor coverings, drapes, paneling, molding, built-in cabinets, doors, vaults, (exclusive of vault doors), plumbing, electrical communications and lighting systems, silencing equipment, all fixtures and outlets for the systems mentioned above and for all telephone, radio, telegraph and television purposes, and any special flooring or ceiling installations. 8.3 Hold -Over. Tenant shall have no right to occupy the Leased Premises or any portion thereof after expiration of this Lease or Tenant's right to possession of the Leased �1 619M15610-0048 9 304265.06 s09/10102 Premises. In the event Tenant or any party claiming by, through or under Tenant, retains possession of the Leased Premises after the expiration or earlier termination of this Lease, such possession shall constitute and be construed as a tenancy at will only, subject, however, to all of the terms, provisions, covenants and agreements of Tenant hereunder. Tenant or any such party shall pay Landlord, as rent for the entire period of any hold -over tenancy, One Hundred Dollars ($100) per day. In the event of such hold -over, Landlord may immediately exercise all remedies available to Landlord at law or in equity to recover possession of the Leased Premises and for damages. Tenant shall be liable to Landlord for any loss or damage Landlord may sustain by reason of Tenant's failure to surrender possession of the Leased Premises immediately upon the expiration or termination of this Lease. If Tenant shall fail to surrender possession of the Leased Premises i mmediately upon t he a xpiration o r e arlier t ermination o f this Lease, T enant h ereby agrees that all the obligations of Tenant and all rights of Landlord applicable during the term of this Lease shall be equally applicable during such period of subsequent occupancy, whether or not a tenancy shall have been created as aforesaid. ARTICLE IX Liens 9.1 Lien. Tenant warrants that no person or entity furnishing any improvement, fixture, equipment or facilities in connection with any improvement or construction within or on the Leased P remises s hall h ave a ny r ight t o a l ien u pon t he L eased P remises o r t he L and b y virtue of any security interest in such improvement, fixture, equipment or facilities. Tenant shall promptly cause any claim, stop notice, lis pendens, lien or claim of lien asserted against Landlord or the Leased Premises or the Land by reason of the furnishing of any improvement, fixture, equipment or facilities in connection with any improvement or construction within or on the Leased Premises or the Land, or any activity of Tenant, to be promptly discharged or paid. Tenant shall defend, indemnify and hold harmless Landlord from and against any such claim, stop notice, lis pendens, lien or claim of lien. ARTICLE X Insurance 10.1 Tenant's Insurance. (a) Types. Tenant, at no cost and expense to Landlord, shall procure and keep in full force and effect during the Term or case to be procured and kept in full force and effect for the mutual benefit of Landlord and Tenant, insurance policies meeting the minimum requirements set forth below or such greater requirements that are generally obtained from time to time for properties, improvements, activities, and operations similar to those on the Leased Premises in the Southern California area: (i) comprehensive general liability insurance with respect to the Leased Premises and the operations of or on behalf of Tenant or its agents, officers, directors, and employees in, on or about the Leased Premises in an amount not less than One Million Dollars ($1,000,000) per occurrence combined single limit bodily injury, personal injury, death 22. 619ro15610-0049 10 304265.06 a091IOW and property damage liability per occurrence, subject to such increases in amount as Landlord may reasonably require from time to time. Coverage shall include, but not be limited to personal injury liability, premises and operation, blanket contractual, cross liability, severability of interest, broad form property damage, and independent contractors. The policy or policies shall include that Landlord and its officers, employees, and agents shall be additional insureds under such policy or policies; (ii) worker's compensation coverage as required by the laws of the State of California together with employer's liability coverage; (iii) with respect to the improvements, fixtures, furnishings, equipment and other items of personal property location on or in the Leased Premises, insurance against fire, peril of flood, extended coverage, vandalism and malicious mischief, and such other additional perils, hazards and risk as now are or may be included in standard "all risk" forms in general use in Riverside County, California, for an amount equal to not less than the full current actual replacement cost thereof. Landlord shall be an additional insured under such policy or policies and such insurance shall contain a replacement cost endorsement. (b) Standard. All policies of insurance required to be carried by Tenant under this Lease shall be written by responsible and solvent insurance companies authorized to do business in the State of California. Any such insurance required of Tenant hereunder may be famished by Tenant under any blanket policy carried by it or under a separate policy therefor. A copy of each paid -up policy evidencing such insurance (appropriately authenticated by the insurer) or a certificate of the insurer, certifying that such policy has been issued, providing the coverage required by this Section and containing provisions specified herein, shall be delivered to Landlord prior to the date Tenant is given the right of possession of the Leased Premises or as Landlord may otherwise require, and upon renewals, not less than thirty (30) days prior to the expiration of such coverage. Landlord may, at any time, and from time to time, inspect and/or copy any and all insurance policies required to be procured by Tenant hereunder. In no event shall the limits of any policy by considered as limiting the liability of Tenant under this Lease. (c) Syecific Provisions in Policy. Each policy evidencing insurance required to be carried by Tenant pursuant to this Article shall contain the following provisions or clauses: (i) a provision that the insurer will not cancel or materially change the coverage p rovided b y su ch p olicy w ithout first g iving Landlord t hirty (30) d ays p rior w ritten notice; and (ii) a waiver by the Tenant's insurer of any right to subrogation against Landlord, its agents, employees or representatives which arises or might arise by reason of any payment under such policy or policies or by reason of any act or omission of Landlord, its agents, employees or representatives. (d) Landlord's Substitute Performance. In the event that Tenant fails to procure, maintain and/or pay for at the times and for the durations specified in this Section, any insurance required by this Section, or fails to carry insurance required by law or governmental regulation, Landlord may (but without obligation to do so) at any time or from time to time, after 23 6191015610-0048 30426S.06 a09/10/02 thirty (30) days written notice to Tenant, procure such insurance and pay the premiums therefor, in which event Tenant shall repay Landlord all sums so paid by Landlord together with interest thereon as provided elsewhere herein, within fifteen (15) days following Landlord's written demand to Tenant for such payment. ARTICLE XI Eminent Domain 11.1 Total Taking. If the entire Leased Premises be taken under the power of eminent domain or by purchase in place thereof (herein together called "Eminent Domain"), this lease shall terminate as of the date possession is taken. 11.2 Partial Taking. If any portion of the Leased Premises shall be taken under the power of eminent domain, and the remaining portion would not, in the reasonable judgment of Tenant be adequate for the continued occupancy of the Leased Premises, either unrestored or restored, or if Tenant deems such restoration to be impractical, Tenant may terminate this Lease immediately by giving notice thereof to Landlord within thirty (30) days after such taking. If this Lease is not terminated pursuant to this Section 11.2, Landlord shall have no obligation to restore the Leased Premises, and Tenant shall continue to pay rent in full and to utilize the Leased Premises. 11.3 Damages. All damages awarded for any such taking under the power of eminent domain shall be paid to Landlord, except damages, if any, specifically allocated by the condemning authority, for fixtures and equipment of Tenant used in operation of the Leased Premises. 11.4 Rent. If Tenant elects to terminate this Lease as provided by this Article, Tenant shall pay Rent up to the date that possession is taken by the condemning authority, and Landlord shall make a proportional refund to Tenant of any Rent paid by Tenant which is applicable to any period after that date and not yet earned. ARTICLE XII Casual 12.1 Casualty to Leased Premises. (a) Definitions. (i) "Leased Premises Partial Damage" shall mean damage or destruction to the Leased Premises, the repair of which will cost $5,000.00 or less, as determined by Landlord. (ii) "Leased Premises Total Destruction" shall mean damage or destruction to the Leased Premises, the repair of which will cost more than $5,000.00 as reasonably determined by Landlord. 04 619/015610.0048 12 30426S.06 t09/10/02 (iii) "Insured Loss" shall mean damage or destruction to the Leased Premises where full insurance proceeds are paid to Landlord. (b) Partial Damage. If a Leased Premises Partial Damage occurs, then Landlord shall repair such damage as soon as reasonable possibly and this Lease shall continue in full force and effect. Tenant shall pay any deductibles payable in connection with such Loss. (c) Total Destruction -Insured Loss. If a Leased Premises Total Destruction that is an Insured Loss occurs, either party may cancel this Lease by delivery of a Notice to the other party within sixty (60) days of the occurrence of such event, effective as of the date of such Notice. If neither party cancels this Lease, then such Total Destruction shall be deemed a Leased Premises Partial Damage and the repair of the Leased Premises shall be governed by the terms of Paragraph 12.1(b) above. (d) - Total Destruction -Uninsured Loss. If a Leased Premises Total Destruction that is not an Insured Loss occurs, either party may cancel this Lease by delivery of a Notice to the other party within sixty (60) days of the occurrence of such event, effective as of the date of such Notice. If neither party cancels this Lease, then Landlord shall commence to repair such damage as soon as reasonably possible thereafter at Landlord's expense, in which event this Lease shall continue in full force and effect. In the event Landlord elects to give Notice of Landlord's i ntention t o terminate t his Lease, T enant s hall h ave t he r ight w ithin ten (10) d ays after the receipt of such Notice to give written notice to Landlord of Tenant's commitment to pay Or the repair of such damage totally at Tenant's expense and without reimbursement from Landlord. Tenant shall provide Landlord with the required funds or satisfactory assurance thereof within thirty (30) days following Tenant's said commitment. In such event this Lease shall continue in full force and effect, and Landlord shall proceed to make such repairs as soon as reasonably possible. If Tenant does not give such Notice and provide the funds or assurance thereof within the times specified above, this Lease shall terminate as of the date specified in Landlord's Notice of termination. 12.2 Abatement. (a) In the event of damage where this Lease is not terminated, whether or not Landlord or Tenant repairs or restores the Leased Premises, the Rent and other charges, if any, payable by Tenant hereunder shall be abated in proportion to the degree to which Tenant's use of the Leased Premises is impaired for the period during which such damage, its repair or the restoration continues. Except for abatement of Rent and other charges, if any, as aforesaid, all other obligations of Tenant hereunder shall be performed by Tenant with respect to the undamaged portions of the Leased Premises. Tenant shall have no claim against Landlord for any damage suffered by reason of any such repair or restoration, except for claims arising from a default by Landlord in the performance of its. repair and restoration obligations. (b) If Landlord shall be obligated to or elects to repair or restore the Leased Premises under the provisions of Section 12.1 and shall not commence the repair or restoration of the Leased Premises within forty-five (45) days after such obligation shall accrue, or the repair and restoration work is not completed within ninety (90) days of the date of the casualty, Tenant may, at any time prior to the commencement of such repair or restoration, as the case may be, 25 6191015610-Mg 13 304265.06 094 0102 give Notice to Landlord and to any lenders of which Tenant has actual notice of Tenant's election to terminate this Lease, effective as of the date of such Notice. "Commencement" as used in this Paragraph shall mean the beginning of the actual construction work on the Leased Premises. 12.3 Waiver of StatutoryRi&_ts. Landlord and Tenant agree that the terms of this Lease shall govern the effect of any damage to or destruction of the Leased Premises with respect to the termination of this Lease and hereby waive the provisions of any present or future statute (including without limitation Sections 1931,1932 and 1933 of the California Civil Code and any successor statutes) to the extent inconsistent herewith. ARTICLE XIII Defaults and Remedies 13.1 Events of Default. An event of default (an "Event of Default') shall occur under this Lease if: (a) Tenant shall fail to perform any of the terms, conditions or covenants of this Lease to be observed or performed by Tenant and such failure shall continue for more than thirty (30) days after Landlord gives Tenant Notice thereof, unless such default is of a nature that it cannot practically be cured within such thirty (30) day period but can be cured within a reasonable time but in no event later than ninety (90) days, and Tenant is proceeding with due diligence to cure such default; (b) the abandonment of the Leased Premises; or the vacating of the Leased Premises without providing a commercially reasonable level of security, or where the coverage of the property insurance described in Section 10.1 herein is jeopardized as a result thereof, or without providing reasonable assurances to minimize potential vandalism; or (c) the occurrence of any of the following events: (a) the making of any general assignment for the benefit of creditors; (b) becoming a "debtor" as defined in 11 U.S.C. Section 101 or any successor statute thereto (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days; (c) the appointment of a trustee or receive to take possession of substantially all of Tenant's assets located at the Leased Premises or of Tenant's interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or (d) the attachment, execution, or other judicial seizure of substantially all of Tenant's assets located at the Leased Premises or of Tenant's interest in this Lease, where such seizure is not discharged within thirty (30) days; provided, however, in the event that any provision of this Section 13.1(c) is contrary to any applicable law, such provision shall be of no force or effect, and not effect the validity of the remaining provisions. Upon the occurrence of any of the foregoing, Landlord may, without limiting Landlord in the exercise of any other right or remedy Landlord may have in law or equity or account of such default, including without 1 imitation, those remedies afforded Landlord pursuant to C alifornia Civil Code Section 1951.4, and without any further demand or notice, Landlord may exercise any of the remedies set forth in Section 13.2. 26 619/015610-0048 14 304265.06 a09/10/02 13.2 Remedies. Upon the occurrence of an Event of Default, then at Landlord's option and without limiting Landlord in the exercise of any other right or remedy Landlord may have in law or equity on account of such default, including without limitation, those remedies afforded Landlord pursuant to California Civil Code Section 1951.4, and without any further demand or Notice, Landlord may exercise either of the following remedies: (a) Re-enter the Leased Premises with process of law, take possession thereof and of all improvements, additions, alterations, equipment and fixtures thereon, and eject all parties in possession thereof Landlord may, without terminating this Lease, relet the Leased Premises or any part thereof for the accounts of Landlord or Tenant, receive and collect the rents therefor, applying the rents first to the payment of such expenses as Landlord may have incurred in recovering possession of the Leased Premises, including costs, expenses and reasonable attorney's fees, and for placing the Leased Premises in good order and condition or preparing or altering the Leased Premises for reletting, and all other, expenses, commission and charges incurred by Landlord in connection with reletting the Leased Premises, and then to the fulfillment of the covenants of Tenant. Any such reletting may be for the remainder of the Term or for a longer or shorter period. Landlord may execute any lease made pursuant to the terms hereof either in Landlord's name or in the name of Tenant, as Landlord may see fit, and the subtenant therein shall be under no obligation whatsoever for the application by Landlord of any rent collected by Landlord from such subtenant to any and all sums, due and owing or which may become due and owing under the provisions of this Lease. Tenant shall have no right or authority to collect any rent from such subtenant. In any case and whether or not the Leased Premises or any part thereof be relet, Tenant shall pay to Landlord all Rent required to be paid by Tenant up to the time of re-entry by Landlord. Thereafter, Tenant, if required by Landlord, shall pay to Landlord, until the end of the Term, the equivalent of the amount of all Rent, less the net proceeds of a reletting, if any, during the Term, after payment of the expenses of Landlord. Such rent shall be due and payable at the times provided for installments of Rent, and Landlord need not wait until the termination of this Lease to recover any Rent by legal action or otherwise. Re- entry by Landlord shall not constitute an election to terminate this Lease unless Landlord gives Tenant Notice of Landlord's election to terminate. Landlord shall not be responsible or liable for any failure to relet the Leased Premises, or any part thereof, or for any failure to collect any rent due upon such reletting; or (b) Declare this Lease terminated, re-enter the Leased Premises with process of law, eject all parties in possession thereof and repossess and enjoy the Leased Premises, and Landlord shall thereupon be entitled to recover from Tenant the present value, at the time of such termination, of the amount of Rent for the balance of the Term at an annual capitalization rate of eight percent (8%). 13.3 Remedies Not Exclusive; No Waiver; Specific Performance. The remedies of Landlord set forth in this Lease are in addition to and not exclusive of any other remedy of Landlord which may be permitted at law or in equity, and if any breach or threatened breach of this Lease by Tenant occurs, Landlord shall be entitled to enjoin such breach or threatened breach and shall have the right to invoke any right and remedy allowed at law or in equity or by statute or otherwise in addition to rights set forth in this Lease. Tenant shall permit any re-entry without hindrance to Landlord, and Landlord shall not be liable in damages or guilty of trespass or eviction because of such re-entry. The failure of Landlord to insist, in any one or more 27 619/015610-0049 15 304265.06 a09/10/02 instances, upon a strict performance of any of the covenants of this Lease or to exercise any right or remedy contained herein, shall not be construed as a waiver or a relinquishment for the future of such covenant or option. A receipt by Landlord of any installment of Net Rent with knowledge of the breach of any covenant of this Lease shall not be deemed a waiver of such breach. No waiver by Landlord of any provision of this Lease shall be deemed to have been made unless expressed in writing and signed by Landlord. In addition to the other remedies contained in this Lease and by law provided, Landlord shall be entitled to the restraint by injunction of the violation or attempted or threatened violation of any of the provisions of this Lease or to a decree compelling performance of any of such covenants, conditions or provisions. ARTICLE XIV Indemnity 14.1 Tenant's Indemnity. Tenant shall defend, indemnify and hold harmless Landlord, its agents, and any and all affiliates of Landlord, including, without limitation, any public agency or other entities controlling, controlled by or under common control with Landlord, from and against any and all claims or liabilities arising from Tenant's use or occupancy of the Leased Premises or the Land or the conduct of its business or from any activity, work, or thing done, permitted or suffered by Tenant in or about the Leased Premises and the Land, and shall further defend, indemnify and hold harmless Landlord, its agents and affiliates against and from any and all claims or liabilities arising from any breach or default in the performance of any obligation on Tenant's part to be performed hereunder, or arising from any act or negligence of Tenant, or of its agents, employees, visitors, patrons, guests, invitees or licensees, including vendors, servicing Tenant at its request, and from and against all costs, attorneys' fees, expenses and liabilities incurred in or about any such claims or liabilities or any actions or proceedings brought thereon. Notwithstanding the foregoing, Tenant shall not be liable for damage or injury occasioned by the gross negligence or willful misconduct of Landlord or its designated agents, servants or employees, unless covered by insurance Tenant is required to provide. This obligation to indemnify shall include Tenant's payment of reasonable attorneys' fees and investigation costs and a 11 o ther r easonable c osts, a xpenses a nd 1 iabilities i ncurred o r s uffered b y Landlord from Landlord's receipt of the first notice that any claim or demand is to be made or may be made. Landlord may, at its option, require Tenant to assume Landlord's defense in any action covered by this Section 14.1 through counsel satisfactory to Landlord. As used in this Lease, the term "gross negligence" shall mean the failure to perform a manifest duty in reckless disregard of the consequences as affecting the life or property of another. ARTICLE XV Miscellaneous 15.1 Recording. Landlord and Tenant each covenant to the other not to record, or cause to be recorded, this Lease or any short form thereof. 15.2 Estopuel Certificates. Each party agrees at reasonable intervals and from time to time upon not fewer than ten (10) business days' prior written Notice by the other to execute, acknowledge and deliver a statement in writing certifying (a) that this Lease is unmodified and in 28 619ro 1561 aoo48 16 304265.06 &09n0ro2 full force and effect (or if there have been modifications, that this Lease is in full force and effect as modified and stating the modifications), (b) the dates to which the installments of Rent have been paid in advance, if any, and (c) stating whether or not, to the best knowledge of the signer of such certificate, the other party is in default in performance of any covenant, agreement or condition contained in this Lease and, if so, specifying each such default of which the signer may have knowledge. Each party acknowledges that any such statement delivered under this Lease may be relied upon by third parties. 15.3 Right to Enter. Landlord shall have the right to enter the Leased Premises (a) at reasonable hours upon prior reasonable notice to Tenant (verbal or written) for any purpose permitted or required by thus Lease; or (b) at any time that an emergency exists, to examine the Leased Premises or to make such repairs and alterations as shall be reasonably necessary for the safety and preservation of the Leased Premises. 15.4 Governing Law. This Lease shall be construed and applied in accordance with the laws of the State of California. 15.5 Severability. Any provision or provisions of this Lease which shall prove to be invalid, void, or illegal shall in no way affect or impair or invalidate any other provision, and the remaining provisions shall remain in full force and effect. 15.6 Headings. The headings of the various Articles and Sections of this Lease are inserted for reference only and shall not to any extent have the effect of modifying, amending or changing the express terms and provisions of this Lease. 15.7 Notices. All notices, demands, elections, deliveries and other communications between Landlord and Tenant required or desired to be given in connection with this Lease ("Notices"), to be effective hereunder, shall, except as otherwise expressly provided in this Lease, be in writing, and shall be deemed to be given and received (a) when delivered personally; or (b) two (2) days after being deposited with a national overnight courier service (e.g., Federal Express) or with the United States Postal Service as certified mail, return receipt requested, in either event with all charges or postage prepaid and addressed as follows: If to Landlord, La Quinta Redevelopment Agency 78-495 Calle Tampico P.O. Box 1504 La Quinta, CA 92253 Attention: Frank J. Spevacek With a Copy to: Rutan & Tucker, LLP 611 Anton Boulevard, 141h Floor Costa Mesa, CA 92626 Attention: M. Katherine Jenson, Esq. 20 619/0156104)048 17 304265.06 a09/ 10/02 And if to Tenant, MDS Consulting 17320 Redhill Avenue, Suite 350 Irvine, California 92714-5644 Attention: Stan Morse With a Copy to: Attention: Either Landlord or Tenant may from time to time designate another address for the receipt of future Notices by a Notice given as provided in this Section 15.7 to the other party at the address set forth in, or as last provided by such other party in accordance with, this Section 15.7. 15.8 Amendments and Waivers. Neither this lease nor any term or provision hereof may be changed, waived, or discharged orally, but only by an instrument in writing signed by the party against which the enforcement of the change, waiver, or discharge is sought. 15.9 Successors and Assigns. Notwithstanding anything contained herein to the contrary, this Lease shall be binding upon and inure to the benefit, as the case may require, of the parties hereto and their respective heirs, executors, administrators, successors and assigns. 15.10 Subordination. This Lease shall be subject and subordinate at all times to the lien of any mortgage or deed of trust, which may now or at any time hereafter be alien upon the Land. Tenant shall execute and deliver such further instrument or instruments subordinating this Lease to the lien of any such mortgage or deed of trust as shall be reasonably requested by any mortgagee or party secured or proposed mortgagee or party proposed to be secured. Tenant shall attorn to any successor to Landlord by foreclosure or deed in lieu thereof or to any purchaser at a foreclosure sale of the Leased Premises. 15.11 Assiggment of Landlord's Interest. If Landlord should ever assign this Lease or the rents hereunder to a creditor as security for a debt, Tenant shall, after. Notice of such assignment and upon demand by Landlord or the assignee, pay all sums thereafter becoming due Landlord hereunder to the assignee and give all Notices required to be given Landlord hereunder both to Landlord and the assignee. Landlord may assign this Lease, by direct assignment or merger, to an affiliate of Landlord without the approval of Tenant. Landlord shall also have the right to make a collateral assignment of this Lease to its lender without the approval of Tenant. 15.12 Transfer by Landlord. If Landlord sells, leases or in any manner transfers title to the Leased Premises, including foreclosure sale by judicial proceeding or otherwise, the Landlord shall be relieved of all covenants and obligations arising hereunder after the date of such sale, lease or other transfer, provided that such transferee shall agree, in a writing delivered 0 O to Tenant, to assume all covenants and obligations of the Landlord hereunder. Tenant agrees that `' 6191015610-0049 18 304265.06 s09/10/02 it will attorn to such transferee upon the satisfaction of such conditions, and Tenant shall continue to perform all of the terms, covenants, conditions, and obligations of this Lease. 15.13 Rules and Regulations. Landlord shall have the right, from time to time, to issue reasonable roles and regulations regarding the use of the Leased Premises. When so issued, such rules and regulations shall be considered a part of this Lease. Landlord shall not be liable to Tenant in the violation of any rules and regulations or the breach of any covenant or condition in any lease by any other tenant of the Land. 15.14 Entire Agreement. This Lease contains the entire agreement of the parties with regard to the matters set forth herein. Any other agreements, promises or representations, oral or written, between the parties with respect to such matters are hereby superseded and merged into this Lease. 15.15 Time of Essence. Time is of the essence of this Lease. 15.16 Execution of Counterparts. This Lease may be executed in several counterparts, each of which shall be an original but all of which shall constitute one and the same instrument. 31 619/015610.0048 19 304265.06 009/10/02 15.17 Relationship Between the Parties. Notwithstanding the existence of other relationships between the parties to this Lease, this Lease only controls the relationship between Landlord, as landlord under this Lease, and Tenant, as tenant under this Lease. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed to be effective as of the date first written above. ATTEST: June,V . deek, Agency C PROVE AS TO FO Katherine Jenson Agency. Attorney THE LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic By. ,r:�•�,z�0 . homas P. Genovese Executive Director MDS CONSULTING, a Californi,3, oration By: Title:.C�C • G� /..5/ �� "Landlord" "Tenant" 34 619/0156104)048 20 304265.06 a09/10/02 EXHIBIT "A" DESCRIPTION OF THE LAND 79-799 Old Avenue 52, located in the City of La Quinta, County of Riverside, State of California, consisting of a building containing 1,670 square feet of space, commonly known as the "Ahmanson Ranch Bull Barn" 33 61510156104049 21 327746.01 PM02 4 EXHIBIT 66B`9 DEPICTION OF THE LEASED PREMISES VIPF VwwT 7 fill ;j VIA U! PAR - ; " _ PARCEL (KSL MWTDUNM) t V4 YZ Y41 PIP DaMNG MMDm. t EXVEISTING DitDOMORTIN,' =GULTING) OSH DAPELZ �N GAME SCHOOL: \,APPROX. LOCATION OF SUM TANK 4 ko. N 1%.8V50'05'E. 661-84 .......... �,--: 34 -PARCEL;1 ,,�,;�, EXHIBIT IT r 619A)l 5610-0049 TO . LEASE 22 304265.06 aO9/10102 a, o� o CV OF COUNCIL/RDA MEETING DATE: September 16, 2003 AGENDA CATEGORY: ITEM TITLE: Approval of a Lease Agreement with KSL BUSINESS SESSION: for a Portion of SilverRock Ranch CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Approve a Land Use License Agreement with KSL for use of a portion of SilverRock Ranch for overseeding operations, and authorize the Executive Director to execute the agreement. FISCAL IMPLICATIONS: None. BACKGROYND AND OVERVIEW: In previous years, KSL has utilized property north of Avenue 54 adjacent to its maintenance facility to temporarily store grass clippings from overseeding operations on their golf courses. KSL is requesting the use of approximately 10,000 square feet of SilverRock Ranch property again this year from October 6-20, 2003. The grass clippings will be stored for a few days, and then hauled away from the site. To that end, the City Attorney has drafted a Land Use License Agreement (Attachment 1). The agreement requires KSL to implement soil stabilization measures and to restore the subject property to its original condition. The agreement also includes insurance and indemnity provisions. KSL's attorney has not yet completed review of the attached V5 agreement; therefore, this Agreement is subject to further changes to be approved by the Executive Director and Agency Counsel. KSL and Agency staff continue to have discussions regarding the future extension of Avenue 54 and use of property west of the canal and north of Avenue 54. SilverRock Ranch construction is not anticipated until early 2004. Accordingly, staff recommends accommodating KSL's request. FINDINGS AND ALTERNATIVES: The alternatives available to the RDA Board include: 1. Approve a Land Use License Agreement with KSL for use of a portion of SilverRock Ranch for overseeding ' operations, and authorize the Executive Director to execute the agreement with any changes approved by the Executive Director and City Attorney; or 2. Do not approve a Land Use License Agreement with KSL for use of a portion of SilverRock Ranch for overseeding operations, and do not authorize the Executive Director to execute the agreement; or 3. Provide staff with alternative direction. Respectfully submitted, Mark Weiss, Assistant Executive Director Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Land Use License Agreement ATTACHMENT 1 LAND USE LICENSE AGREEMENT THIS LAND USE LICENSE AGREEMENT (the "Agreement") is made effective this day of September 2003, by and between the La Quinta Redevelopment Agency ("Agency") and KSL Desert Resorts Inc. ("Licensee"); RECITALS WHEREAS, Agency is the owner of certain real property approximately 10,000 square feet in size located in the City of La Quinta, California, depicted as the "Clipping Pile" on Exhibit "A" attached hereto (the "License Property"); WHEREAS, Licensee will be conducting overseeding operations on its golf courses from October 6 through October 20, 2003; WHEREAS, Licensee desires to utilize the License Property to store grass clippings resulting from overseeding operations until the clippings can be hauled away; WHEREAS, subject to the terms, covenants and conditions of this Agreement, Agency is willing to grant Licensee permission of access for ingress and egress over the License Property owned by Agency, and permission to use the License Property for the limited purpose of storage for grass clippings (the "Land Use") in consideration of certain undertakings with respect to the License Property by Licensee; NOW THEREFORE, in consideration of the Recitals, the mutual promises and obligations contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. GRANT; LIMITATION OF RIGHTS. Agency hereby grants to Licensee a non- exclusive, revocable license for access, ingress and egress over the License Property. Licensee hereby warrants and represents to Agency that Licensee shall return the License Property to a condition substantially as existed on the date that this Agreement is executed. 2. TERM. The right of use granted by this Agreement shall commence October 6, 2003, and shall expire October 21, 2003, unless terminated earlier. The obligations of Licensee under this Agreement shall continue in full force and effect until all obligations of Licensee have been fully completed. 3. USE OF LICENSE PROPERTY. The parties acknowledge and agree that Licensee may access the License Property in conjunction with its overseeding operation. In this regard, during the license period only, Licensee shall have a temporary revocable license to enter upon the License Property for the purposes of placement, storage, and removal of grass clippings. In this regard, Licensee agrees that will coordinate its use of the License Property with Agency's designated representative, Mark Weiss, at (760) 777-7035, and will not disturb, 37 3 damage or contaminate the License Property or interfere in any manner with other activities on the License Property. 4. LICENSEE'S DUTIES/PERMITTED ACTIVITIES. (a) Licensee agrees to be fully financially responsible for any damage or injury to the License Property and/or to any person which may arise in connection with this Agreement. (b) Licensee shall thoroughly clean and make all necessary repairs and replacements, if any, to the License Property, including, but not limited to, turf, landscaping, irrigation equipment, and soil stabilization measures and generally surrender the License Property to Agency at the expiration of the Agreement in such condition as Agency or its representatives deem to be acceptable. In addition, Licensee agrees not to conduct or cause to be conducted on the License Property any repair, maintenance and/or refueling of any vehicles and equipment. (c) Licensee agrees to be responsible for the clean-up of any new environmental contamination, and/or aggravation of existing contamination, which occurs as a result of, or arises in connection with, any activities conducted by Licensee, its employees, agents, subLicensees or representatives, under this Agreement and to indemnify and hold Agency and the City of La Quinta harmless from and against any and all claims, losses, damages and injuries of any nature whatsoever resulting from or arising out of Licensee's activities under this Agreement, except to the extent resulting from the gross negligence or willful misconduct of Agency, its employees, agents, Licensees or representatives. Licensee's obligation to observe and perform this covenant shall survive the expiration or other termination of this Agreement. If any toxic or chemical Hazardous Materials attributable to Licensee, its agents, employees, on - site subLicensees, or invitees, or the activities of any of them, are found in the soil, air surface or ground water on, under or about the License Property, Licensee, at its sole expense, shall promptly take any and all actions necessary to return the License Property to the condition existing prior to the introduction of such Hazardous Materials to the License Property in accordance with applicable laws and the requirements of all governmental agencies with jurisdiction, provided that Agency's approval of such actions shall first be obtained, which approval shall not be unreasonable withheld. If Licensee causes or permits a significant release of Hazardous Materials or is in material noncompliance with any applicable law or requirement of this Section, Agency may make a reasonable demand for action upon Licensee. If Licensee does not respond within thirty (30) days (unless there is an emergency, in which case Licensee shall be required to respond as soon as practicable), Agency may, at its option, take reasonable actions to remedy the release or noncompliance at Licensee's sole expense, which sums shall be immediately due and payable to Agency. At any time during the term of this Agreement, Licensee shall, if required by any governmental agency, promptly take whatever steps are necessary to investigate and remedy any contamination by Hazardous Materials caused by Licensee, its agents, employees, on -site subLicensees or invitees. (d) Licensee shall be responsible for obtaining all permits and approvals from all applicable governmental authorities necessary in connection with the Land Use on License 4 Property. Licensee shall comply with all laws, rules, and regulations in carrying out its use and clean up of the Licensed Property. (e) Licensee agrees that any and all costs incurred with regard to the Land Use and/or use of License Property or any claims of third parties for liens, personal injury or property damage with respect to the use of the License Property shall be borne by Licensee at Licensee's sole cost and expense. Licensee agrees to indemnify and hold Agency harmless from and against any claim, loss, cost or liability of any nature whatsoever arising out of or incurred in connection with the Land Use. (f) Licensee shall not cause, suffer or permit any mechanic's, materialman's or other liens to attach to or be recorded against the, License Property in connection with work performed by Licensee. (g) In the event that Licensee, or its subLicensees, breach any of the foregoing covenants regarding the License Property and/or any facilities or systems located on the License Property, Licensee agrees to be responsible for all damages caused by such breach, including but not limited to compensatory, consequential and incidental damages and attorney's fees and court costs associated therewith. Licensee acknowledges and agrees that consequential damages shall include any damages actually caused by Licensee's breach, regardless of whether such damages were foreseeable at the time that this Agreement was executed. By way of example only, and not by limitation, consequential damages include damages resulting from environmental contamination and economic losses resulting from damage to irrigation systems. 5. INSURANCE AND LICENSES. At all times during the Term of this Agreement, Licensee shall carry and maintain, in full force and effect, at its sole cost and expense, the following insurance policies with insurance companies satisfactory to Agency. Such policies shall include a provision requiring a minimum of thirty (30) days notice to Agency of any change or cancellation. The Agency and the City of La Quinta, their officers, employees and agents, shall be named as additional insureds on the policies listed in Subsections 5(a) and (b). (a) Comprehensive general liability insurance in an occurrence format in an amount of five million dollars ($5,000,000) per occurrence, including the following coverages: contractual liability, personal injury, broad form property damage, independent Licensees and premises operations. (b) Business auto coverage form insurance on all vehicles used in connection with this License and/or on the License Property in an amount of five hundred thousand dollars ($500,000) combined single limits for bodily injury and property damage per occurrence. (c) Workers' Compensation insurance in accordance with the provisions of the Workers' Compensation Act of the State of California for all employees, subLicensees and any subLicensee's employees engaged in connection with this Agreement. �9 A (d) Licensee agrees to provide Agency with certificates of insurance evidencing the policies listed above upon execution of this License as a condition to commencing any of the activities contemplated by this Agreement. 6. INDEMNITY. (a) Licensee shall indemnify, defend, and hold Agency and City of La Quinta, their subsidiaries and affiliates, their respective officers, directors, agents and employees ("Indemnified Parties") and the License Property free, clear and harmless from any and all demands, claims, causes of action, damages, liabilities, liens, losses, costs, charges, penalties, obligations, judgments, fines and expenses (including, without limitation, attorney's fees) of any kind whatsoever in connection with, arising out of, or by reason of any breach, violation or nonperformance by Licensee, its agents, servants, employees, subLicensees or invitees, of any covenant or provisions of this Agreement or any law, ordinance, rule, regulation or order or by reason of any damage, harm or loss to the License Property, including, without limitation, any damage to the License Property, including, without limitation, any damage to the License Property and any liability to any third party incurred by reason of any acts or omission of, or any commission of, any negligent or tortious acts by Licensee, its agents, servants, employees, subLicensees or invitees. In the event the Indemnified Parties are made a party to any action, lawsuit, or other adversarial proceeding in any way involving such claims, Licensee shall provide a defense to the Indemnified Parties, or at the Agency's option, reimburse the Indemnified Parties their costs of defense, including reasonable attorney's fees, incurred in defense of such claim. In addition, Licensee shall be obligated to promptly pay any final judgment or portion thereof rendered against the Indemnified Parties. (b) The provisions of this section shall not be ready to limit in any respect whatsoever Licensee's obligations as provided in the Agreement. 7. TERMINATION. The Agency shall have the right to terminate this Agreement at any time with or without cause by giving Licensee twenty-four (24) hours written notice. 8. NOTICES. Any notice to be given to Agency or Licensee shall be in writing and shall be deemed to have been properly delivered when directed to such addressee as follows: To Agency: La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, CA 92253 Attention: Mark Weiss Facsimile: (760) 777-7101 To Licensee: KSL Desert Resorts, Inc. 50-905 Avenida Bermudas La Quinta, CA 92253 Attention: Facsimile: (760) 0 Any party may change the address to which such communications are to be directed to it by giving a written notice to the other party in the manner provided in this paragraph. Any notice given pursuant to this paragraph shall be deemed to be delivered when addressed to the addressee as set forth therein, (i) at the time a written notice by mail is deposited in the United States mail, postage prepaid, or (ii) the time any other written notice, including facsimile, telegram or other electronic mail message, is personally delivered to the recipient or is delivered to a common carrier for transmission or actually transmitted by the person giving the notice by electronic means, to the recipient. 9. ASSIGNMENT/SUBLICENSEES. This agreement shall not be assignable by Licensee. In the event any portion of the activities is performed by a subLicensee, Licensee warrants that all such subLicensees shall abide by all terms and conditions of this Agreement, including, without limitation, furnishing the insurance coverages and the indemnification. Licensee warrants each such subLicensee's compliance with the terms and conditions of this Agreement. 10. MISCELLANEOUS. (a) No amendment, alteration, modification of or addition to this Agreement shall be valid or binding unless expressed in writing and signed by the party or parties to be bound thereby. This Agreement is the result of negotiations of the parties and shall be construed as jointly drafted. (b) The Agreement shall be governed by and interpreted in accordance with the laws of the State of California. (c) This Agreement contains the entire agreement and understanding between the parties regarding the Licensee's use of the License Property and there are no terms, covenants or conditions which exist other than those contained herein. (d) If any party hereto shall bring any suit or action against another for relief, declaratory or otherwise, arising out of this Agreement, the prevailing parry shall have and recover against the other party, in addition to all court costs and disbursements, such sum as the court may adjudge to be reasonable attorney's fees. The parties have executed this Agreement on the dates indicated below to be effective the date first above written. "AGENCY" "LICENSEE" LA QUINTA REDEVELOPMENT AGENCY KSL DESERT RESORTS, INC. 0 Dated: LE Dated: 41 7 ATTEST: LA QUINTA REDEVELOPMENT AGENCY I,. Agency Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP By: M. Katherine Jenson, Agency Counsel 440 8 N � f� r T r I r ♦ � u �� Mug■-- �^ . b—VIM cfy Sepcli 049MA COUNCIL/RDA MEETING DATE: September 16, 2003 ITEM TITLE: Approval of a Professional Services Agreement with The Keith Companies to Provide Civil Engineering Services for SilverRock Ranch RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve a professional services agreement with The Keith Companies to provide civil engineering services for the SilverRock Ranch project, and authorize the Executive Director to execute the contract. FISCAL IMPLICATIONS: The City's Capital Improvement Program includes the Silver Rock Ranch project and has budgeted $3,100,000 for professional services. Approximately $400,000 has been allocated to planning services, $1,000,000 for golf course architectural services, and $100,000 for development coordinator services. Accordingly, sufficient funds (i.e. approximately $1,600,000) remain in the account for Civil Engineering, Construction Management and other professional services including marketing, building architecture, and landscape architecture. The contract with The Keith Companies is for a fixed fee of $444,182 with an option to add $36,312 and $42,932 for water well and canal pump station design services. BACKGROUND AND OVERVIEW: On July 1, 2003 the Agency Board authorized the distribution of a Request for Proposals (RFP) for Civil Engineering Services (Phases IA and IB) for the SilverRock Ranch project. Proposals were due July 25, 2003, and five firms submitted proposals. The Agency's selection committee interviewed four firms on August 7, 2003 including (in alphabetical order): The Keith Companies; Mainiero, Smith & Associates; MDS Consulting; and Tetra Tech, Inc. Following the interview process, the committee lu selected The Keith Companies. Pursuant to the City's consultant selection process, staff then negotiated a contract with The Keith Companies in an amount not to exceed $444,182 with an option of adding an additional $36,312 to design on -site water wells and $42,932 to design a canal pump station. The Professional Services Agreement with The Keith Companies is included as Attachment 1. The contract, once approved, will be in effect through May 31, 2005. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve a professional services agreement with The Keith Companies to provide civil engineering services for the SilverRock Ranch project, and authorize the Executive Director to execute the contract; or 2. Do not approve a professional services agreement with The Keith Companies to provide civil engineering services for the SilverRock Ranch project, and do not authorize the Executive Director to execute the contract; or 3. Provide staff with alternative direction. Respectfully submitted, Mark Weiss, Assistant Executive Director Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Professional Services Agreement 45 2 Attachment 1 PROFESSIONAL SERVICES AGREEMENT This AGREEMENT FOR PROFESSIONAL SERVICES (the "Agreement'), is made and entered into by and among the LA QUINTA REDEVELOPMENT AGENCY (the "Municipality"), a California municipal corporation, and The Keith Companies. (The "Contractor"). The parties hereto agree as follows: 1. SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of the Agree- ment, the Contractor shall provide those services related to Civil Engineering services for SilverRock Ranch, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Contractor warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. Services will be provided to the Municipality. For convenience, the Municipality is referred to herein as the "Agency." 1.2 Contractor's Proposal. The Scope of Services shall include the Contractor's proposal or bid, which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern. 1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the Municipality, the Agency, and any and all Federal, State or local governmental agency of competent jurisdiction. 1.4 Licenses, Permits, Fees, and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.5 Familiarity with Work. By executing this Agreement, Contractor warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should the Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the Agency, it shall immediately inform Agency of such fact and shall not proceed except at Contractor's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 46 3 1.6 Care of Work. The Contractor shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to person, or property, until acceptance of the work by Agency, except such losses or damages as may be caused by Agency's own negligence. The performance of services by Contractor shall not relieve Contractor from any obligation to correct any incomplete, inaccurate or defective work at no further cost to the Agency, when such inaccuracies are due to the negligence of Contractor. 1.7 Additional Services. In accordance with the terms and conditions of this Agreement, the Contractor shall perform services in addition to those specified in the Scope of Services, (Exhibit "A") when directed in writing to do so by the Contract Officer, provided that Contractor shall not be required to perform any additional services without compensation. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to the Agreement, the Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "B" and incorporated herein by this reference. The Contractor shall be compensated in an amount not exceeding Four Hundred forty-four thousand one hundred and eighty-two Dollars ($444,182) (the "Contract Sum"). The method of compensation set forth in the Schedule of Compensation will be on a fixed fee basis with an option of $36,312 for water well design and $42,932 for canal pump station design. • 2.2 Method of Payment. Any month in which Contractor wishes to receive payment, Contractor shall submit to the Agency no later than the tenth (10`h) working day of such month, in the form approved by the Contract Officer, an invoice for services rendered prior to the date of the invoice. Such invoice shall describe in detail the percentage complete of the services provided by tasks set forth in Exhibit B. Such invoice shall contain a certification by a principal member of Contractor specifying that the payment requested is for work performed in accordance with the terms of this Agreement. The Municipality or the Agency, whichever is appropriate based upon the election of the Agency and the Municipality, will pay Contractor for all expenses stated thereon which are approved by the Municipality or the Agency pursuant to this Agreement no later that the last working day of the month. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the performance of this Agreement. 47 4 3.3. Force Majeure. All time periods specified for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargos, acts of any governmental agency other than City, and unusually severe weather, if the Contractor shall within ten (10) days of the commencement of such delay notify the Contracting Officer in writing of the causes of the delay. The Contracting Officer shall ascertain the facts and the extent of delay and extend the time for performing their services for the period of the forced delay when and if in his judgment such delay is justified, and the Contracting Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. Unless earlier terminated in accordance with Sections 7.7 and 7.8 of this Agreement, this Agreement shall continue in full force and effect until May 31, 2005. 4.0 COORDINATION OF WORK 4.1 Representative of Contractor. The following principals of Contractor are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: 1. Dean Palumbo 2. Dan Ruiz It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for Agency to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of the Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Contractor and no other personnel may be assigned to perform the service required hereunder without the express written approval of Agency. 4.2 Contract Officer. The Contract Officer shall be the Assistant Executive Director or such other person as may be designated by the Executive Director of the Municipality. The Contract Officer has been authorized to act on behalf of the Municipality for the purposes of this Agreement. It shall be the Contractor's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the Agency to enter into this Agreement. Therefore, Contractor shall not contract Am 5 with any other entity to perform in whole or in part the services required hereunder without the express written approval of the Agency. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of Agency. 4.4 Independent Contractor. Neither the Agency nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth. Contractor shall perform all services required herein as an independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of Agency. 4.5 Agency Cooperation. The Agency shall provide Contractor with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to the Agency. 5.0 INSURANCE INDEMNIFICATION AND BONDS. 5.1 Insurance. The Contractor shall procure and maintain, at its cost, and submit concurrently with its execution of the Agreement, public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Contractor's acts or omissions rising out of or related to Contractor's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contractor's performance hereunder and neither the City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming the Agency and its officers and employees as additional insured shall be delivered to and approved by the Agency prior to commencement of the services hereunder. The amount of insurance required hereunder shall be determined by the Contract Sum in accordance with the following table: Contract Sum Coverage (personal injury/property damage) Less than $50,000 $100,000 per individual; $300,000 per occurrence $5010004300,000 $250,000 per individual; $500,000 per occurrence Over $300,000 $500,000 per individual; $1.000,000 per occurrence 49 The Contractor shall also carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by the Contractor, its officers, any directly or indirectly employed by the Contractor, any subcontractor, and agents or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contractor's performance under this Agreement. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contractor's performance hereunder and neither the Agency nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming the Agency and its officers and employees as additional insured shall be delivered to and approved by the Agency prior to commencement of the services hereunder. Contractor shall also carry Workers' Compensation Insurance in accordance with State Workers' Compensation laws. The Contractor shall procure professional errors and omissions liability insurance in the amount acceptable to the Agency. All insurance required by the Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days' written notice of proposed cancellation to Agency. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contractor's obligation to indemnify the Agency, its officers, employees, contractors, subcontractors or agents. 5.2 Indemnification. The Contractor shall defend, indemnify and hold harmless the Agency, its officers, officials, employees, representatives and agents, Agency indemnities, from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person(s), for damage to property (including property owned by the Agency) ("claims") and for errors and omissions committed by Contractor, its officers, anyone directly or indirectly employed by Contractor, any subcontractor, and agents or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contractor's performance under this Agreement, except to the extent of such loss as may be caused by Agency's own active negligence, sole negligence or willful misconduct, or that of its officers or employees. In the event the Agency indemnitees are made a party to any action, lawsuit, or other adversarial proceeding in any way involving such Claims, Contractor shall provide a defense to the Agency indemnitees, or at the Agency's option, reimburse the Agency indemnitees their costs of defense, including reasonable attorney's fees, incurred in defense of such claim. In addition contractor shall be obligated to promptly pay any final judgment or portion thereof rendered against the Agency indemnitees. JO h 5.3 Remedies. In addition to any other remedies the Agency may have if Contractor fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, the Agency, at its sole option: 1. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. 2. Order the Contractor to stop work under this Agreement and/or withhold any payments(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. 3. Terminate the Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies the Agency may have and are not the exclusive remedies for Contractor's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to person or property resulting from Contractor's or its subcontractors' performance of work under this Agreement. 6.0 RECORDS AND REPORTS 6.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Contractor shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents, and other materials, whether in hard copy or electronic form, which are prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of Agency and shall be delivered to Agency upon the termination of this Agreement or upon the earlier request of the Contract Officer, and Contractor shall have not claim for further employment or additional compensation as a result of the exercise by Agency of its full rights of ownership of the documents and materials hereunder. Contractor may retain copies of such 51 �; documents for its own use. Contractor shall ensure all subcontractors to assign Agency any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify Agency for all damages suffered thereby. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Contractor in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Contractor shall not disclose to any other private entity or person any information regarding the activities of the City or Agency, except as required by law or as authorized by the Agency. 7.0 ENFORCEMENT OF AGREEMENT 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefor. The injured party shall continue performing its obligation hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, the Agency may take such immediate action as the Agency deems warranted. Compliance with the provisions of this Section shall be a condition precedent to termination of the Agreement for cause and to any legal action, and such compliance shall not be a waiver of any parry's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit Agency's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. Agency may withhold from any monies payable to Contractor sufficient funds to compensate Agency for any losses, costs, liabilities or damages it reasonably believes were suffered by Agency due to the default of Contractor in the performance of the services required by the Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. Agency's consent or approval of any act by Contractor requiring Agency's consent or approval shall not be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act of Contractor. Any waiver by either party of any default must be in writing and shall not be a waiver 52 of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior to Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. The Agency reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Contractor. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Contractor shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation (Exhibit `B") or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination for Default of Contractor. If termination is due to the failure of the Contractor to fulfill its obligation under this Agreement, City may, after compliance with the provision of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the Agency shall use reasonable efforts to mitigate such damages), and Agency may withhold any payments to the Contractor for the purpose of setoff or partial payment of the amounts owned the Agency as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connections with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8.1 Non -liability of City Officers and Employees. No officer or employee of the Agency shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the Agency of for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of the Agreement. 53 10 8.2 Conflict of Interest. No officer or employee of the Agency shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his personal interest or the interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 8.3 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, disability or ancestry in the performance of the Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin, physical disability, mental disability, medical condition, age or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, communication. either party desires or is required to give to the other parties or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section 9.1. To Municipality: LA QUINTA REDEVELOPMENT AGENCY 78-495 Calle Tampico La Quinta, California 92253 Attention: Mark Weiss Assistant Executive Director To Contractor: The Keith Companies 73733 Fred Waring Drive Palm Desert, CA 92260 Attention: Dean Palumbo President, Palm Desert Division 9.2 Integrated Agreement. This Agreement contains all of the agreements of 54 11 the parties and all previous understandings, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by all parties. 9.4 Severability. In the event that any or more of the phrases, sentences, clauses, paragraphs, or sections contained in the Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceable shall not effect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. 12 stated below. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates LA QUINTA REDEVELOPMENT AGENCY, a California municipal corporation Dated: By: EXECUTIVE DIRECTOR ATTEST: Agency Secretary APPROVED AS TO FORM: Agency Counsel Dated: Name: Title: "MUNICIPALITY" "CONTRACTOR" 56 13 EXHIBIT AW Scope of Services I. Geotechnical Investigations Southland Geotechnical, Inc. will prepare a geotechnical investigation report describing the work performed and subsurface soils conditions encountered. The report will address at a minimum, the following: A. Feasibility of site for proposed construction. B. Identification and mitigation of geologic and seismic hazards including a liquefaction study (if required). C. Recommendations for foundation design, including allowable bearing pressures, estimated total and differential settlement. D. Recommendations for site preparation and engineered fill placement, including a description of the on -site soils and the suitability of these soils for use in compacted fills. E. Recommendations for slab -on -grade, including damp proofing or waterproofing interior slabs. F. Discussion of the sulfate and chloride content of the on -site soils. G. Preliminary recommendations for imported fill (if required) for use in compacted fills. H. Preliminary infiltration rate for retention basin design. I. Preliminary pavement structural section for streets and parking areas based on R-Value testing of the site J. Identify locations of bedrock. II. Boundary Survey A. Upon receipt of a current preliminary title report and schedule A and B supporting documents, TKC will research county records for survey documentation, tie notes, maps of record and horizontal and vertical control. B. Perform a field boundary survey, of the subject property, in conformance with the Professional Land Surveyors Act and the Subdivision Map Act. III. Design Survey Perform a field design survey to provide data for the design of the entry road, sewer and the designs of Avenue 54. This task consists of field cross -sections at +/- 50' intervals. TKC has excluded the excavation for the potholing of existing utilities. TKC will field survey either the existing, exposed utilities or the markers left by the J� 14 potholing contractor. IV. Hydrology Analysis and Drainage Plan A. Based on the plan prepared by the Palmer Course Design Company and the Conceptual Master Plan, TKC shall prepare a hydrology study for Phase 1A and 1B. 1) It is assumed that the hydrology from Phase 2 may impact Phase 1 and, therefore, analysis of Phase 2 is included. 2) It is assumed that all off -site hydrology analysis is prepared by others. B. Based on the site hydrology analysis, TKC will identify the optimum location of the necessary retention basin(s) for Phase 1. Volume requirements and compatibility with the golf course will be given equal consideration. Note: TKC anticipates utilizing the fairways and golf course lake as storm drain retention areas. TKC will coordinate with Palmer and the lake design consultant for freeboard and conveyance conditions. V. Mass Grading Plan, SWPPP and PM-10 Plans Utilizing the golf course plan prepared by the Palmer Course Design Company and the Conceptual Master Plan prepared by GMA International, TKC will prepare and process a Mass Grading Plan at a scale of 1 "=100'. Said plan will mass grade the designated Phase 1. The plan will be processed in accordance with the grading standards and ordinances of the City of La Quinta. This plan will establish the grading limits within the project boundary, the entry road undercut section, the necessary detention/retention areas based on our drainage plan, and excavation for the lake areas. Earthwork calculations will be performed using state of the art computer software. If possible, Phase 1 A and 1 B will be designed to balance within Phase 1. Should import or export be required, appropriate sites will be identified in Phase 2. TKC will provide one (1) day of field survey to observe spot elevations throughout the project area. Said spot elevations will be overlaid with the provided digital topographic file and reviewed for variances. The results will be discussed with the client. VI. Precise Grading and Paving Plan A. TKC will prepare a precise grading plan for the community center/golf clubhouse area and the golf maintenance site. Said plan shall be at a scale of 1 "=20' and include the drainage design. Note: TKC assumes a site plan(s) for the community center/golf clubhouse and golf maintenance site will be provided by others. It is also assumed that 15 the site plan(s) will be provided in CAD format. TKC also assumes that the Phase 1 A -Special Use Site and Phase 113 Site will not require precise grading plans at this time. For purposes of this proposal, TKC has assumed the precise grading plan for the clubhouse area will indicate the footprint of the temporary clubhouse along with those portions of the ultimate paving to be constructed as part of the temporary clubhouse, including parking and access. TKC has also assumed the precise grading plan for the maintenance building will be based on a building and site plan prepared by others. We have assumed the maintenance facility will encompass approximately 1.5-2.0 acres and will consist of building footprint, parking and access, and other maintenance facility functions (storage, etc.). It is advantageous for all temporary plans to show ultimate development conditions (if available) to minimize removal the removal of phased improvements. TKC will show these ultimate conditions as a backdrop on the improvement plans where available. VII. Street Plan Design A. TKC will prepare half -width plan and profile street plans for Avenue 54 at a scale of 1 "= 40'. Based on the Conceptual Master Plan, this scope of work shall prepare plans for approximately 2,100 LF -of Avenue 54. B. TKC will prepare plan and profile street plans at a scale of 1 "= 40' for the entry road from Avenue 52 to the golf clubhouse. Based on the Conceptual Master Plan, this scope of work shall prepare plans for approximately 3,600 LF of the entry road. C. TKC will prepare street lighting design for Avenue 54 and the main entry road. Vlll. Sewer and Water Plans A. Prepare plan and profile sewer plans at a scale of 1 "= 40'. The sewer plans shall be from Avenue 52 to the clubhouse. For the purposes of this proposal, TKC has assumed the main sewer line will gravity drain to the existing sewerline in Avenue 52 without the design and implementation of pump stations and/or force mains B. Prepare water plans in plan view only at scale of 1 "= 40'. The water plans shall be from Avenue 52 to the clubhouse. Said plans to be processed through CVWD for approval. TKC has assumed the Phase 1 design will not require "looping" of the 59 16 watermain system. If additional waterline design is required by CVWD to "loop" the main line or alter the alignment, this work will be considered as an additional service and an addendum prepared. IX. Bridge Design We propose to investigate two structure type alternatives for the bridges in the preliminary phase of the work. The first alternative would consist of precast concrete girders with a cast -in -place concrete deck. This alternative will be economical, rapid to construct, suitable for aesthetic enhancements if desired, and low maintenance. Depending on the site grading adjacent to the Canal, there may not be sufficient vertical clearance for girders under the deck. Therefore, the second alternative will consist of a prefabricated steel through -truss with a concrete deck. This alternative is also economical, simple to construct and can be aesthetically pleasing. The feasibility of the alternatives, their advantages and disadvantages and their relative costs will be evaluated and presented for review and approval prior to commencing with the final design of the selected alternative. Only one structure type will be used for all three bridges, and all three superstructures will be identical geometrically. The bridge engineering work will consist of Preliminary Engineering and Final Plans, Specifications and Estimates (PS&E) phases. The Preliminary Engineering Phase will involve bridge type selection studies and completion of the General Plan drawings and Cost Estimates for each structure based on the final cart path/maintenance roadway cross -sections (or grading) and geometrics. Upon review and approval of the General Plan of the preferred alternative, work will proceed with final structural analysis, design and PS&E in preparation for obtaining competitive bids for construction. Phase I — Preliminary Bridge Engineering 1.1 Coordinate with all members of the design team and attend two project team meetings. 1.2 Conduct a field review of the bridge sites to observe existing conditions and verify the general topography, site constraints and any visible obstructions or other features that may affect bridge layout, type selection, or constructibility. 1.3 Review bridge site data provided by the civil engineer including cart path/maintenance roadway cross -sections, grading and geometrics. 1.4 Perform bridge type selection studies and prepare the bridge General Plan drawings showing final layout and superstructure, substructure and foundation types. 1.5 Perform preliminary quantity take -offs and prepare the bridge General Plan Estimates (the engineer's professional opinion of probable bridge construction cost) for each structure. Phase II - Final Bridge Design and PS&E ►0 17 2.1 Coordinate with all members of the design team and attend two project team meetings. 2.2 Complete final bridge structural analysis, design, and plans based on the following design guidelines as necessary: • Caltrans Bridge Design Specifications • Caltrans Bridge Memos to Designers • Caltrans Bridge Design Aids and Design Details Manuals • Caltrans Seismic Design Criteria • City of La Quinta Standards, if applicable Bridge details will be based on standard aesthetics with no special architectural treatments; Plans will be prepared in English units of measure using the MicroStation CAD package; 4-scale bridge deck contour plots will not be necessary for use during construction. 2.3 Perform independently checked quantity take -offs for each item of bridge work involved and prepare an engineer's estimate (opinion of probable construction cost) for each structure. 2.4 Prepare bridge technical specifications based on the Caltrans Standard Specifications using current Caltrans bridge standard special provisions (SSPs). 2.5 Conduct an in-house quality control review of the bridge PS&E package. 2.6 Submit reproducible prints of the plans, special provisions, and engineer's estimate to The Keith Companies for incorporation with other improvement plans and submittal to reviewing agencies.. 2.7 Prepare a written response to agency comments and revise the bridge PS&E packages as required to secure agency approvals. 2.8 Submit the final originals of the bridge PS&E package for agency approval signatures. For the purpose of this proposal, TKC has assumed the following items of work are not required and have not been included in the scope of services of this proposal: Special architectural design and details or renderings Hydraulics and scour studies Metal beam guard railings for approaches 61 18 • Landscaping design • PS&E for utility pipelines, conduits, or other facilities • Electrical engineering and bridge lighting • Environmental studies and mitigation plans Permit applications X. Project Management and Agency Coordination A. TKC will prepare and process all street plans through the City of La Quinta for review and approval. B. TKC will prepare and process the mass grading plans through the City of La Quinta for review and approval. C. TKC will prepare and process the on -site hydrology and drainage plans through the City of La Quinta for review and approval. D. TKC will prepare and process sewer and water plans through the CVWD for review and approval. E. TKC will prepare and process the bridge plans through the CVWD for review and approval and approval. F. TKC will coordinate the preparation of the dry utility plans through the respective utility companies. Note: TKC will be preparing and processing the street light plans. See Task VII. G. TKC will coordinate with the client and their sub -consultants. XI. Cost Estimates and Specifications A. TKC will prepare an engineer's estimate of costs for the design elements within this scope of work. The engineer's estimate will be prepared at the 75% design level and updated at the final plan level. B. TKC will prepare the technical specifications for the design elements within this scope of work. The specifications will be prepared at the 75% design level and updated at the final plan level. Note: It is assumed that the City will prepare the general specifications and actual bid documents. XII. Bid Process and Post Design Services A. TKC will assist the City in the post -design phase. 1) TKC will respond to requests for information. 2) TKC will assist the City in review of general contractors bid. B. TKC will assist the City in preparation of contract addenda, if necessary. F� W] C. TKC will attend a pre -bid meeting to be scheduled by the City. TKC will assist the City in preparation of meeting agenda and meeting notes. D. TKC will attend a pre -construction meeting to be scheduled by the City. TKC will assist the City in preparation of meeting agenda and meeting notes. Construction Staking TKC will provide one (1) set of construction stakes as follows: 1. Rough Grade Staking • Stake the center of the tees, center of the greens, and the centerline of the fairways at 100-foot intervals with grade to finished surface elevation; • Stake the centerline of the proposed streets at 100-foot intervals with grade to finished surface elevation. 2. Street Improvements • Stake the curb at 25-foot intervals with grade to top of curb elevation; • Stake the spandrels with three (3) stakes, with elevation to flow line elevation. 3. Domestic Water Improvements (Staking for this improvement is to occur post curb construction per CVWD requirements) • Stake the main line angle points, tees and fittings for horizontal alignment only. • Stake a point at the back of curb for meter and hydrant locations. 4. Sanitary Sewer Main • Stake the main line at 25-foot intervals with grade to invert elevation; • Stake the manholes with invert and finished surface elevations; • Stake a point at the proposed curb face at later crossings with elevation to top of curb elevation. 5. Temporary Clubhouse • Stake the 4 corners of the building footprint with grade to finished pad elevation; • Stake the proposed phase I parking lot curb at 25-foot intervals with grade to top of curb elevation. Note: The parking to support the temporary facility will be a phase I portion of the future overall parking lot. The staking for the future lot is not included. Also, TKC assumes that rough grade staking will not be required. 6. Maintenance Building • Stake the 4 corners of the building footprint with grade to finished pad elevation; • Stake the proposed parking lot curb at 25-foot intervals with grade to top of curb elevation. 7. Golf Cart Bridges • Stake two (2) points to define the centerline of the three (3) proposed golf cart bridges with a noted elevation for each point. 63 20 OPTIONAL ITEMS A. Design of on -site Water Wells TKC will design the mechanical equipment for each well, such as deep well pump, discharge piping and valving, and associated appurtenances, based on capacity information to be furnished by the client; the structural enclosure design -of well equipping facilities; site improvements; yard and discharge piping to the lake system; electrical controls; and other associated work. Note: Limits of the design effort will be limited to the facilities from the well site to the golf lake system. From that point, the Developer's landscape/ irrigation consultant will be responsible for the design of the remaining irrigation facilities. Hydrogeologic/production testing of the well is not included as part of this scope. B. Canal Pump Station TKC will design a booster pump station to provide a supplemental supply to the golf course lakes portion of the project, involving structural modifications to the existing channel lining of the All -American Canal, installation of a vertical turbine pump, site piping, grading, electrical controls, and other associated appurtenances. TKC has assumed that the client will process the BOR/CVWD encroachment permit. Contract Schedule TKC anticipates this contract to commence October 1, 2003 and terminate May 31, 2005. G 4 21 EXHIBIT "B" Fee Schedule TKC proposes to complete the tasks described in Exhibit A, on a fixed fee basis, as detailed below: I. Geotechnical Investigations ............................................... $9,926 II. Boundary Survey............................................................... $10,420 III. Design Survey...................................................................... $7,932 IV. Hydrology Analysis and Drainage Plan ........................... $279406 V. Mass Grading Plan, SWPPP and PM-10 Plans .................. 43,568 VI. Precise Grading and Paving Plan ..................................... $36,566 VII. Street Plan Design............................................................. $379616 Vill. Sewer and Water Plans ..................................................... $35,558 IX. Bridge Design..................................................................... $46,700 X. Project Management and Agency Coordination ............. $20,420 XI. Cost Estimates and Specifications .................................. $309098 XII. Bid Process and Post Design Services ........................... $13,984 Construction Staking......................................................... $99,680 DirectCosts.................................................................................. $15,500 Subconsultant Management Fee ................................................... 8 778 Contract Base Total...............................................$444,182 OPTIONAL tITEM S A. Design of on -site Water Wells ........................................... $36,312 B. Canal Pump Station........................................................... $42,932 6J 22 /rrnn--ram �• f ti5 AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: September 16, 2003 BUSINESS SESSION: ITEM TITLE: Approval to Appropriate Funds for CONSENT CALENDAR: Award of a Contract to Construct the Avenida La Fonda Street Enhancements, Project No. 2002-05 STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Appropriate funds consistent with City Council's chosen course of action on Business Session Item 2 on today's City Council Agenda. FISCAL IMPLICATIONS: This project is included within the Fiscal Year 2002/2003 Capital Improvement Program (CIP). The following represents the approved project budget: Expense Category City Administration Engineering Construction Inspection/Testing/Survey TOTAL BUDGET: Less Prior Expenditures (as of September 4, 2003) Less Marvin Reimbursement Agreement TOTAL AVAILABLE: Budget Amount $ 37,619.00 $ 75,238.00 $610,516.00 $ 56,428.00 $779,801.00 ($ 93, 337.60) (133,246.19) $553,217.21 Construction bids for this project were received on September 4, 2003 at 10:00 a.m. The project received a single bid from Cora Constructors in the total amount of $637,291.00. Cora Constructor's bid is $176,729.00 less than the single bid received on July 21, 2003 from A. Flores Excavating and Grading, Inc. ($814,020.85). 66 S:\QtyMgr\STAFF REPORTS ONLY\New RDA report.doc The project was re -bid to allow the City Council maximum flexibility in awarding all, part, or none of the proposed street enhancements to Cora Constructors. The following fiscal alternatives are available: Award Alternative Number 1 Award the Base Bid Area. The base bid area includes all work within the median and all electrical items. Cora Constructors bid these items of work in the amount of $413,400.00. The following budget would be required if this alternative is selected: Activit City Administration (5% of Construction) Construction Inspection/Testing/Survey (7.75% of Construction) TOTAL: Contingency (10% of total) TOTAL: Budget Amount $ 20, 670.00 $413,400.00 $ 32,000.00 $466,077.00 $ 46, 607.00 $512,677.00 As illustrated, the project budget necessary to award the base bid area to Cora Constructors is $512,677.00. The amount available as of September 4, 2003 is $553,217.21. Adequate funding exists to support the award of this alternative. Award Alternative Number 2 Award the Base Bid Area and Additive Alternate No. 1. In addition to the median, and electrical items, Additive Alternate No. 1 includes the street improvements and the south parkway improvements. Cora Constructors bid for these additional items is $193,691.00. The following budget would be required if this alternative is selected: Activity City Administration (5% of Construction) Construction Inspection/Testing/Survey (7.75% of Construction) TOTAL: Contingency (10% of total) TOTAL: Budget Amount $ 30, 000.00 $607,091.00 $ 47,000.00 $684,091.00 $ 68,409.00 $752,500.00 As illustrated, the project budget necessary to award the base bid area plus Additive Alternate No. 1 to Cora Constructors is $752,500.00. The amount 67 S:\CityMgr\STAFF REPORTS ONLY\New RDA report.doc 2 available as of September 4, 2003 is $553,217.21. A budget shortfall exists in the amount of $199,282.79. RDA Project Area No. 1 funds in the amount of $199,282.79 are available. However, if appropriated toward this improvement, such an appropriation may have an impact on future projects. Award Alternative Number 3 Award the Base Bid Area plus Additive Alternate Nos. 1 and 2. Additive Alternate No. 2 adds the Calle Estado retrofit improvements. Cora Constructors bid for Calle Estado retrofit is $30,200.00. The following budget would be required if this alternative is selected: Activit City Administration (5% of Construction) Construction Inspection/Testing/Survey (7.75% of Construction) TOTAL: Contingency (10% of total) TOTAL: Budget Amount $ 32,000.00 $637,291.00 $ 50,000.00 $719,291.00 $ 71,929.00 $791,220.00 As illustrated, the project budget necessary to award the base bid area plus both Additive Alternate Nos. 1 and 2 to Cora Constructors is $791,220.00. The amount available as of September 4, 2003 is $553,217.21. A budget shortfall exists in the amount of $238,002.79. RDA Project Area No. 1 funds in the amount of $238,002.79 are available. However, if appropriated toward this improvement, future economic development projects may be delayed. BACKGROUND AND OVERVIEW: The City Council approved the Fiscal Year 2002/2003 CIP on July 16, 2002. This year's CIP includes installing the La Fonda Street Enhancements, Project No. 2002- 05. A prototypical theme has been established for the Village Commercial District, which was used to construct the street amenities on Calle Estado. Last year the City installed the prototypical street improvements on Avenida La Fonda, which included underground electrical conduit for 19 future light poles. On September 17, 2002, the City Council approved a Professional Services Agreement (PSA) with RGA Landscape Architects to prepare the plans, specifications, and engineer's estimate (PS&E) for installing the remaining Avenida La Fonda Street Enhancements, Project No. 2002-05. The enhancement improvements include landscaping within the median island and parkways, • S:\CityMgr\STAFF REPORTS ONLY\New RDA report.doc 3 retrofitting of the existing temporary electrical system, placing decorative pavers on walkways, and installing artistic water features at both entrances to the street. On November 5, 2003, the City Council approved two artistic water feature concepts for the east and west entrances to Avenida La Fonda. On May 20, 2003, the City Council approved the PS&E and authorized staff to advertise the Avenida La Fonda Street Enhancements subject to the approval of the finalized plans by the City Engineer. On July 21, 2003, the City received a single bid to construct the Avenida La Fonda Street Enhancements, Project No. 2002-05. The bid was received from A. Flores Excavating and Grading, Inc. in the amount of $814,020.85. Staff did not believe the bid to be competitive with the current construction market. On July 22, 2003, the City Council rejected the bid from A. Flores Excavating and Grading, Inc. and authorized staff to re -advertise the project for bid. On September 4, 2003, the City opened the second round of bids for the Avenida La Fonda Street Enhancement Project. Once again, the City received a single bid. The bid was submitted by Cora Constructors in the amount of $637,291.00. A detailed bid comparison summary is provided at Attachment 1. Cora Constructor's bid is $176,729.00 less than the single bid received on July 21, 2003 from A. Flores Excavating and Grading, Inc. ($814,020.85). The project was re -bid in a manner that allows the City Council maximum flexibility in awarding all, part or none of the proposed street enhancements to Cora Constructors. The following project schedule is anticipated if the City Council chooses to award all or a part of the proposed street enhancements: Construction Award Construction Acceptance of Improvements FINDINGS AND ALTERNATIVES: September 16, 2003 October 1, 2003 - December 30, 2003 January 2004 The alternatives available to the Redevelopment Agency Board include: 1. Appropriate $199,282.79 from unallocated RDA Project No. 1 funds to construct the Base Bid Area plus Additive Alternative No. 1 within the Avenida La Fonda Street Enhancements, Project No. 2002-05; or 69 4 S:\CityMgr\STAFF REPORTS ONLY\New RDA report.doc 2. Appropriate $238,002.79 from unallocated RDA Project No. 1 funds to construct the Base Bid Area plus Additive Alternatives No. 1 and No. 2 within the Avenida La Fonda Street Enhancements, Project No. 2002-05; or 3. Provide staff with alternative direction. Respectfully submitted, Ti othy R. nas o , P.E. Works Director/City Engineer Approved for submission by: 1 �. Thomas P. Genovese, Executive Director Attachments: 1. Bid Comparison Summary i� S:\CityMgr\STAFF REPORTS ONLY\New RDA report.doc 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O O O O 61% 60.# 61). 60� O O O O O O O O N co N co N N O t0 O 0).•- r 69 61H Ln N O i _ O — .- CO O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O co O N O N N O co O O O O O to O c0 O co N 4 I� O ("i 00 L Cp CO 6% N N 69 69 69 69 6Fi 6Fi 69 6F? 6F} 6F? 69 69 69 6R O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 00 O O O O O O O O N O O O O O T- O O O O O O O O N O O O O O N O O 00 cn O 00 O O O l� N L—I , - � �O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O +? 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O a W O c -p m O p ai N U �u N _ o ~ Cn N O z O = m O U O `- O m O V _ m V E o2'�� a > > o z =' E e-NM�M a 73 8 O p W �G .o�r r IYtrrn�uan �• wu tiS OF,° COUNCIL/RDA MEETING DATE: September 16, 2003 AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: ITEMTITLE: Consideration of Final Golf Course Routing STUDY sEssloN: Plan for SilverRock Ranch PUBLIC HEARING: RECOMMENDATION: That the Redevelopment Agency review the final golf course routing plan for SilverRock Ranch Tournament Golf Course and authorize the Executive Director to approve said plan. FISCAL IMPLICATIONS: None for this action. BACKGROUND AND OVERVIEW: The Redevelopment Agency authorized a contract with Palmer Course Design Company (PCDC) for golf course architectural services in July of this year. Pursuant to the contract, PCDC was to prepare and receive approval on a preliminary routing plan before beginning work on the final routing plan. A preliminary draft routing plan was given to representatives from Landmark Golf (retained in a special consulting role subsequent to approval of the Golf Industry Consultant Account), representatives from the Bob Hope Chrysler Classic, and GMA International, in addition to members of the Agency's project staff and consultant team. Alterations were made to that plan based on comments received. The Agency reviewed and approved a preliminary routing plan at its regular meeting of August 19, 2003. 74 PCDC subsequently reviewed the approved preliminary plan in conjunction with additional staff and consultant review and prepared a "final routing plan" for Agency consideration (Attachment 1). The final routing plan included as Attachment 1 is substantially the same as the preliminary routing plan previously approved by the Agency. PCDC will continue to coordinate design efforts with staff and other Agency representatives (i.e., GMA, PACE Engineering, etc.). Thus, minor revisions to this plan may be expected as refinements are considered specific to the grading/drainage and water master plans (i.e., in addition to continued consideration of the perimeter project boundary and buffer issues) . Once the final routing plan is approved, PCDC will begin preparation of golf course construction documents (i.e., Phase II of its contract). FINDINGS AND ALTERNATIVES: The alternatives available to the Redevelopment Agency include: 1. Review the final golf course routing plan for SilverRock Ranch Tournament Golf Course and authorize the Executive Director to approve said plan; or 2. Do not authorize the Executive Director to approve said plan; or 3. Provide staff with alternative direction. Respectfully submitted, V - Mark Weiss Assistant Executive Director Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. 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I Lam/ _ J ` D j u i n C) 1\r � • • • J►N:: • .. p e Y � O � 1 "0-) n i t • 0 , t NN a'6 0 + • O • •J r O q0 t t .•.. r rrr�� v.—o ♦ �� 1F I LN3WH3V11V pp/ H v � OF'T9 COUNCIL/RDA MEETING DATE: September 16, 2003 AGENDA CATEGORY: ITEM TITLE: Consideration of Interview Sc hedule for BUSINESS SESSION: Public Relations/Marketing Services for SilverRock Ranch CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Select a "short list" of public relations/marketing firms for SilverRock Ranch and identify potential interview dates. FISCAL IMPLICATIONS: None for this action. The Agency has not formally established a budget for pre -opening marketing services. The. Request for Proposals (RFP) was silent on the matter, thereby allowing responding marketing firms an opportunity to propose recommended program levels without specific budget constraints. Pursuant to the Consultant Selection Process, cost proposals from interviewing firms were opened after the Committee had ranked the firms. Proposals varied widely in scope, detail and cost, with hourly rates for top staff ranging from $95.00 to $150.00 per hour and proposed budgets ranging from $350,000 to over $1.4 million. BACKGROUND AND OVERVIEW: The Agency Board authorized distribution of a RFP for Public Relations/Marketing services for SilverRock Ranch and identified a Consultant Selection Committee at its August 5, 2003 meeting. The Agency Board also requested that the Committee bring forward two to four firms for Agency Board interview and final selection. The RFP was distributed to a list of interested firms, advertised in the W• Desert Sun, and made available on the project website for downloading. The Agency received twelve proposals (Attachment 1) by the August 22, 2003 deadline. All proposals and cost proposals are available for review in the City Manager's Office. The Consultant Selection Committee reviewed the proposals and selected six firms for Committee interview on September 5, 2003 (Attachment 2); after the interviews, the Committee ranked the firms and recommended four firms for further Agency consideration: • McMurry, Inc. • McLaughlin Marketing & Communications • inOne Advertising and Design • Kiner/Goodsell Advertising As noted under "Fiscal Implications" above, cost proposals from the submitting firms varied widely. Staff recommends that the invited firms be advised that the Agency is interested in maintaining a pre -opening marketing budget of 5500,000 and ask that each firm specifically address required alterations to their submitted proposal at that funding level during their presentation to the Agency Board. Staff further recommends that the Agency Board schedule a Special Meeting for interviews with the four firms listed above so as to allow each firm 50 minutes to make a 20-minute presentation, followed by a 30-minute question and answer session. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Authorize staff to invite selected public relations/marketing firms to interview before the Agency on a specified date; 2. Do not authorize staff to invite selected public relations/marketing firms to interview; or 3. Provide staff with alternative direction. Respectfully submitted, Mark Weiss, Assistant Executive Director 73 2 Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. List of Public Relations/Marketing Proposals 2. Short List so 3 ATTACHMENT 1 List of Public Relations/Marketing Proposals Received (Listed Alphabetically) Creative I Group Gaugher + Santy Hunt Weber Clark Associates inOne Advertising and Design Jones Agency Kiner/Goodsell Advertising Laer Pearce & Associates McLaughlin Marketing & Communications McMurry, Inc. PMA Advertising Riber Sports Marketing Group Smith/Junger/Wellman 4 ATTACHMENT 2 Short List of Firms Interviewed by Selection Committee September 5, 2003 (Listed Alphabetically) inOne Advertising and Design Hunt Weber Clark Associates Kiner/Goodsell Advertising McLaughlin Marketing & Communications McMurry, Inc. Riber Sports Marketing Group Short List of Firms Recommended for Agency Board Interview (Listed Alphabetically) inOne Advertising and Design Kiner/Goodsell Advertising McLaughlin Marketing & Communications McMurry, Inc. I COUNCIL/RDA MEETING DATE: September 16, 2003 ITEM TITLE: Consideration of a Request for Proposals for Construction Management Services for SilverRock Ranch RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Authorize the distribution of a Request for Proposals (RFP) for Construction Management services (Phase IA) and appointment of the Consultant Selection Committee. FISCAL IMPLICATIONS: The City's Capital Improvement Program includes the SilverRock Ranch project and has budgeted $3,100,000 for professional services. Approximately $400,000 has been allocated to planning services, $1,000,000 for golf course architectural services, $100,000 for development coordinator services, and $500,000 for civil engineering services. Accordingly, sufficient funds (i.e., approximately $1,100,000) remain in the account for Construction Management and other professional services including marketing, building architecture, and landscape architecture. BACKGROUND AND OVERVIEW: The Redevelopment Agency acquired 525 acres of property, commonly referred to as "The Ranch," in June of 2002. The Agency adopted a conceptual land use plan and named the project "SilverRock Ranch" in May 2003. The Agency selected Palmer Course Design Company (PCDC) to provide golf course architectural services and Roy Stephenson, P.E. of Berryman & Henigar to serve as Development Coordinator for Phase I of the project. The Development Coordinator's responsibilities include assisting the project development team in identifying and preparing Request for Proposals (RFP) for specialists needed to design the golf course, support infrastructure, landscape improvements, a temporary clubhouse, restrooms, and a maintenance building. An RFP is also being prepared for a construction manager. In addition, the Development Coordinator will prepare RFP's or Statement of Qualifications (SOQ) for golf course rem contractors & golf course operators. The Agency approved the project schedule and distribution of request for proposals for Civil Engineering and Plant Inventory services at its meeting of July 1, 2003. The contract for the golf course architect (PCDC) was approved by the Agency on July 22, 2003. In addition, the Agency approved distribution of request for proposals for Public Affairs/Marketing and Building Architectural services at its meeting of August 5, 2003. Construction Management RFP The RFP for construction management (Attachment 1) is for services associated with construction of the improvements programmed for Phase IA. These improvements include the golf course, temporary clubhouse, restrooms, maintenance building, roadways, water wells, utilities and landscaping. Distribution of this RFP at this time is programmed in accordance with the project master schedule (Attachment 2). The construction manager will serve as the Agency's representative and interface with the various construction contractors hired by the Agency to construct the project. The, construction manager will review plans and specifications of construction drawings, including a constructability and value engineering analysis prior to Agency award of all contracts. The construction manager will administer the contracts, conduct regularly scheduled progress meetings, process requests for information (BFI's), and change orders (CO's). They will inspect all improvements for compliance with the plans, specifications and regulatory standards, including PM-10 (Dust Control). The construction manager will also coordinate progress payments between the contractors and the Agency and maintain chronological files on all correspondence, submittals, daily inspections, BFI's, and CO's. Upon completion of the work, the construction manager will coordinate the preparation of "As Built" drawings supplied by the contractors. Consultant Selection Committee Staff proposes the Consultant Selection Committee include the following members: Mark Weiss, Assistant Executive Director Tim Jonasson, Public Works Director Roy Stephenson, Development Coordinator Tom Hartung, Building and Safety Director 2 r� Process The RFP's have been set up using the standard consultant selection process wherein the Committee interviews, rates, and negotiates a contract with a selected firm, with subsequent contract consideration by the full Agency Board. On selected occasions (i.e., the Golf Architect), the Board has chosen to interview finalists prior to contract negotiation/consideration. Staff is prepared to modify the RFP and its schedule should the Agency Board wish to interview the top rated firms. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Authorize 'the distribution of a Request for Proposals for Construction Management services (Phase IA); and appoint the Consultant Selection Committee; or 2. Do not authorize the distribution of a Request for Proposals for Construction Management services (Phase IA); or 3. Provide staff with alternative direction. Respectfully submitted, Mark Weiss, Assistant Executive Director Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Construction Management RFP 2. Consultant Selection Project Master Schedule 3 85 Request For Proposals The La Quinta Redevelopment Agency (RDA) is requesting proposals from consulting firms to provide Construction Management services in conjunction with implementation of the RDA's SilverRock Ranch project (Phase IA). Phase IA includes construction of the first golf course, maintenance building, two golf course restrooms, a temporary clubhouse and supporting infrastructure. In July 2002, the Agency purchased 525 acres that was once the Ahmanson family ranch. Now- known as SilverRock Ranch, the RDA's goal is to develop a premier golf -oriented resort community that encompasses two 18-hole golf courses, resort, passive recreation, and resort -oriented commercial uses. The property is adjacent to the Coral Reef Mountains and the private golf communities of PGA West, Tradition, The Citrus, and The Hideaway. GMA International has completed the conceptual master plan and development program for this property, which was approved by the Redevelopment Agency Board on May 6, 2003. The master plan includes a preliminary routing plan for both golf courses, entry roads, and identifies. future community center/golf clubhouse, hotel, and commercial sites. The master plan also includes a phasing plan (Exhibit A). Phases IA and IB have now been conceptually approved by the RDA for implementation. The RDA has selected Palmer Course Design Company as the Golf Course Architect for Phase IA. The golf course design is scheduled for completion in early 2004. The RDA has also extended the contract with GMA International to provide support services during the design effort. Roy Stephenson P.E. of Berryman & Henigar, Inc. has been retained to provide development coordination services. It is the RDA's intent to construct the golf course under two separate contracts: it's anticipated a contract for mass grading of Phase IA will be awarded in January 2004, followed by a contract for golf course construction scheduled for award in April 2004. 86 4 The restrooms, maintenance building, temporary clubhouse and support infrastructure will be awarded in subsequent separate contracts upon completion of design by the architects and civil engineers. The support infrastructure consists of widening Ave. 52 & Ave. 54, a new entry road, utilities, water wells, and landscaping outside the golf course envelope. The Construction Management firm is required to work closely with the Agency Board, the project development team, and Palmer Course Design Company. Exhibit A Phasing Plan Me* Desired Services The firm is expected to familiarize itself with the SilverRock Ranch Conceptual Master Plan, the physical characteristics of the site, and the proposed facilities to be constructed in Phase IA. These facilities will all require compliance with public bidding and prevailing wage regulations. The firm should demonstrate its knowledge of these public contract administrative procedures. Specific services should, at a minimum, include the following: 1. Pre -construction Services • Assist the City, as requested, to review construction documents including plans, specifications and all other associated items in order to verify completeness and consistency throughout the project. • Check for quantity deficiencies, potential conflicts, staging, sequencing logic, constructability reviews, and consistency between plans and specifications, etc. • Assist in the pre -qualification process to select contractors eligible to bid on the golf course construction contract. • Conduct a value engineering review of the plans and specifications to identify potential cost savings. • Review construction bids prior to Agency award of contract. 2. General Project Administration Services • Provide a written response on Consultant letterhead to each "Request for Information" (RFI), and to each "Change Order Request" (COR), submitted by contractors. • Prepare and issue work addenda and/or specification clarifications to contractors, as needed to complete all project work. • Participate in pre -construction conferences, and conduct weekly construction progress meetings with all involved parties (or as directed by Agency). • Prepare and issue all project "Change Orders" (CO) on an as -needed basis, and as directed by Agency Representative. • Evaluate reasonableness of proposed construction schedules and make recommendations to Agency. • Coordinate all construction work with each permitting Agency to insure compliance with permit requirements. • Coordinate all on -site construction activity to achieve all project milestone dates, and to ensure that all project goals are attained. • Insure adherence, with accepted industry and Agency standards for all work. 3. Construction Management Services • Act as construction project manager and perform all Resident Engineer functions during construction as the Agency's representative. • The Agency intends to use "Partnering" on this project. The selected CM team will be expected to participate in the partnering relationship to be developed between the Agency, design team, and the contractor. • Be the point of contact for all communications and interaction with the Contractor(s) and the design team. N. • Review Contractor(s) certified payrolls and conduct random interviews with contractor's workers to insure compliance with prevailing wage regulations. • Review and monitor the contractor's construction schedule. Prepare reports documenting the progress of construction. Take photographs (may include video tape recordings as well as still photographs) of the construction progress on a regular basis. • Process submittals and monitor design consultants' review activities. • Prepare and recommend progress payments. • Coordinate and chair meetings for Agency construction oversight. • Identify and manage potential claims and make recommendations to resolve them. • Insure contractor compliance with SWWPP and PM-10 plans. • Perform daily on -site inspections to verify construction progress and to verify that all work conforms to contract requirements. • Keep the Agency informed of all construction problems and guard against defects and deficiencies in the work of the contractors. • Create and maintain a chronological log of all project correspondence, submittals and memoranda (to include all RFI's and Change Orders). • Create and maintain a chronological log of project Quality Control and Assurance records. 91 • Create and maintain a chronological file of all performed "Daily Inspections" (attach Inspection observations and findings to each filed daily report). • Coordinate review of all shop drawings and submittals for compliance with construction documents within ten (10) days of receipt. Approvals and rejections are to be documented and forwarded to Agency accompanied by a formal "Letter of Transmittal' from Consultant. • Maintain all original construction plans, specifications and material submittal documents. Coordinate the upgrade and revisions to original construction plans and specifications to reflect "As -Built" conditions, and submit one reproducible set to Agency within thirty days of project completion. • Monitor contractor's performance and enforce all requirements of applicable codes, specifications, and contract drawings. . Oversee quality control and materials testing. • Provide coordination and review any contractor's staging plans with the Agency. • Provide final inspection recommendation for acceptance of improvements and coordinate road openings, systems testing, and facilities startup. • Work closely with the golf course operator (to be selected later this year) to assure smooth transition to course operations and play. • Assist the Agency & Golf Course Operator in coordinating the initial operation of the irrigation system. 94 10 These are the general tasks that are required. The consultant is advised that other tasks may be considered as part of the scope of work submitted in his or her proposal. 93 11 Ranch Vision The SilverRock Ranch's canvas spans 525 acres adjacent to the base of the Coral Reef Mountains in the City of La Quinta. The RDA's goal is to develop premiere hospitality and golf venues that become must -see destinations in the Coachella Valley. The final development will be crafted as if it had evolved over time by melding the rich hues of the desert and strong architectural elements inspired by the site with rusticated materials. The Agency has discussed the proposed buildings architectural style as one that captures a sense of lightness and beauty that's found in styles similar to a California Colonial or other southwest Spanish look or theme, keeping with the charm and character of the .City of La Quinta. Environmental approvals have been secured to develop the following uses on SilverRock Ranch: a 250-room hotel with a 10,000 square foot conference center; 300 condo hotel or fractional units with up to 500 keys; two 18-hole public golf courses with a driving range and a 25,000 square foot clubhouse; one 9-hole public golf course; and 25,000 square feet of ancillary tourist commercial uses. Additional approved uses entail passive park space, trails, and view corridors. The RDA approved a Master Plan for the project in May 2003. The Master Plan sets forth a preferred site development program and plan that will guide the precise planning processes. GMA International has been managing this activity and prepared the master plan and associated documents. Their work will be available to the selected organization. The RDA has secured funding to facilitate the development of one golf course and associated improvements. Additional information may be found at the project website: www.silverrockranch.com Regional Location 95 13 Ranch Location 90 14 Submittal Procedures Proposal Packages and Submittal Deadline A work proposal and a cost proposal are to be submitted in separate envelopes, clearly marked with the consultant's name, address and phone number. Work proposals are to be submitted in the envelope marked "Work Proposal" and cost proposals are to be submitted in the envelope marked "Cost Proposal." Ten (10) proposal packages are due by 1:00 p.m., Monday, October 13, 2003, and delivered to: Mark Weiss, Assistant Executive Director/Project Manager La Quinta Redevelopment Agency 78-495 Calle Tampico P. O. Box 1504 La Qu i nta, CA 92253 Contact Person All questions regarding SilverRock Ranch and this Request for Proposals should be directed to Mark Weiss via email at mweiss@la- quinta.org. 9'7 is Proposal Format Respondents are encouraged to keep their proposals brief (not to exceed 20 pages) and relevant to the specific work required. Proposals shall include a minimum of the following items: 1. Work Proposal (Envelope 1) — Submit ten (10) copies limited to a maximum of 20 pages. A. Cover Letter i. The name, address and phone number of the contact person for the remainder of the selection process. ii. Any qualifying statements or comments regarding the proposal and relevant to the information provided in the RFP or the proposed contract. iii. Identification of sub consultants, if any, and their responsibilities. B. Statement of Qualifications i. A listing of project personnel including relevant experience and resumes. ii. Experience with similar work including names and current phone numbers of references for listed projects. C. Project Understanding and Approach i. A narrative that details your understanding of the project and how the organization will approach the requested services. D. Scope of Services i. A description of the tasks, sub tasks, and specific deliverables that will be provided. ii. A description of the firm's current workload with discussion of how this project would be incorporated into the firm's work schedule. 16 E. Schedule Requirements i. The anticipated date for a Notice to Proceed is November 17, 2003. ii. The Agency envisions a 15-month term for construction management services. 2. Cost Proposal (Envelope 2) (Submit one copy) A. A detailed cost proposal for all services and materials is required including the direct and indirect rates (with overhead) and percent of profit anticipated in completing the services as outlined in this RFP. Man hours and extended billing rates per classification of personnel will be indicated for each defined task and/or sub task. A not - to -exceed allowance for reimbursable expenses should also be included within the cost proposal. :9 17 Selection Process A Consultant Selection Committee will review the work proposals. The Committee will select the consultants for interviews based upon the materials submitted in the work proposal. The Committee will interview selected firms and rank the firms. Only after the ranking process is complete will the cost proposals be opened. The Committee will negotiate a contract with the top firm that will then be considered for approval by the Redevelopment Agency Board. The successful firm will be expected to enter into the attached Professional Services Agreement. The tentative schedule is as follows: Issue Request for Proposals September 17, 2003 Proposal due' October 13, 2003 Oral interviews October 23, 2003 Agency Board consideration November 4, 2003 Start activities November 17, 2003 This solicitation does not commit the La Quinta Redevelopment Agency to award a contract, to pay any cost incurred with the preparation of a proposal, or to procure or contract for services or supplies. The La Quinta Redevelopment Agency reserves the right to accept or reject any or all proposals received in response to this request, to negotiate with any qualified source, or cancel in whole or part this proposal process if it is in the best interest of the Agency to do so. Subsequent to contract negotiations, prospective consultants may be required to submit revisions to their proposals. 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FISCAL IMPACT: Processing the Redevelopment Plan Amendment will cost up to $50,000 in combined Redevelopment consultant, legal counsel, environmental consultant and public hearing notice advertising expenses. The Agency Board appropriated funds for these activities on July 22, 2003. BACKGROUND AND OVERVIEW: In 1989, the La Quinta Redevelopment Agency adopted La Quinta Redevelopment Project Area No. 2, which generally encompasses properties between Washington Street and Jefferson Street, from Avenue 50 to Fred Waring Drive (the northern City limits). The purpose for this Redevelopment project was to stimulate economic development through primarily funding street and drainage improvements, and to assist the City of La Quinta with achieving its housing mandates through funding affordable housing projects and programs. When Project Area No. 2 was established the California Community Redevelopment Law required that a limit be included in the total amount of tax increment revenue the Agency may receive from Project Area No. 2. Financial projections were prepared that assumed average annual property value growth of 5% during the 50-year term of the Redevelopment Plan. Based upon these projections, a $400,000,000 tax increment revenue limit was established. Bss 108 During the initial years, annual property value growth In Project Area No. 2 was at or below 5 %. During the latter half of the 1990s and through this fiscal year, annual growth has exceeded 10%, with some years' annual growth being in excess of 26%. This has accelerated the amount of tax increment revenue the Agency has received from Project Area No. 2 and conservative forecasts (3% annual property value growth increases) indicate that the existing $400,000,000 tax increment limit will be achieved by fiscal year 2020-21, or earlier if annual growth exceeds 3%. Reaching the tax increment limit impacts Project Area No. 2 in the following ways: • The term of the Redevelopment Plan runs to May 2039. If the tax increment limit is reached before then the Agency must cease all non - housing Redevelopment activities in Project Area No. 2, including repaying outstanding General Fund loans. • Project Area No. 2 has two outstanding bond debt obligations: the 1995 Housing Bonds of which it is scheduled to fund 21.3% of annual debt service payments until Fiscal Year 2025-26, and the 1998 non -housing bonds of which it is scheduled to fund 100% of annual debt service payments until 2033. These bonds must be repaid and if the tax increment limit is not increased, then the Agency must establish a sinking fund starting in 2014 to retire these bonds. All non -housing revenue would be encumbered for this purpose leaving no funds to repay City General Fund loan obligations. • The Agency cannot issue new housing bonds that pledge Project Area No. 2 housing fund revenue. This would severely impair the Agency's ability to meet its affordable housing obligations. Project Area No. 2 has the projected capacity to support an additional $57.0 million of housing bonds during the remaining term of the Redevelopment Plan. The California Community Redevelopment Law classifies increasing the tax increment limit as a major Redevelopment Plan Amendment. This requires that a Preliminary Plan be prepared that identifies the scope of the Amendment, and that the Preliminary Plan be reviewed and adopted by both the Planning Commission and Agency. If both bodies approve the attached Preliminary Plan, the Redevelopment Plan Amendment process will be initiated. The Planning Commission reviewed and approved the attached Preliminary Plan at their September 9, 2003 meeting. Amending the Redevelopment Plan would entail a three- to five -month process wherein staff, legal counsel and RSG would prepare various documents that support increasing the tax increment limit to $1.5 billion. Staff is not i +' I Bss 2 recommending any other changes to the Redevelopment Plan. The rationale for this increase is to have sufficient financial capacity to pay existing non -housing bond and outstanding City General Fund loan obligations, and to insure that there is sufficient financial capacity to achieve the Agency's affordable housing mandates. Discussions would be held with the taxing agencies that receive tax increment revenue from Project Area No. 2. The Agency has fiscal mitigation agreements with all of the taxing agencies wherein a majority or all of their revenue is paid to them. Given these existing agreements, the Amendment would have little or no impact on these agencies. Finally, a public hearing would be held to consider the ordinance that amends the Redevelopment Plan. All property owners within the 3,116-acre Project Area would receive a public hearing notice. Measures would be taken to inform the public well in advance of the public hearing as to the nature of the Amendment and the fact that it would have no impact on their property or their taxes. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Adopt a Resolution of the Redevelopment Agency accepting and approving a Preliminary Plan for La Quinta Redevelopment Project Area No. 2 and authorize the Executive Director to make such transmittals as required pursuant to Section 33327 of the Health and Safety Code, including confirming that there shall be no change to the base roll; or 2. Do not adopt a Resolution of the Redevelopment Agency accepting and approving a Preliminary Plan for La Quinta Redevelopment Project Area No. 2; or 3. Provide staff with alternative direction. ectfully submi D. H&Whan Community Development Director Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. Preliminary Plan Bss 110 3 RESOLUTION NO. RA A RESOLUTION OF THE BOARD OF DIRECTORS OF THE LA QUINTA REDEVELOPMENT AGENCY RECEIVING THE PRELIMINARY PLAN FOR THE LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 AS PROPOSED TO BE AMENDED WHEREAS, the La Quinta Redevelopment Agency ("Agency"), is a Redevelopment Agency (a public body, corporate and politic) duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Community Redevelopment Law (Part 1 of Division 24 (commencing with Section 33000) of the Health and Safety Code of the State of California); and WHEREAS, the Redevelopment Plan for La Quinta Redevelopment Project Area No. 2 ("Redevel opment Plan") was adopted on May 16, 1989 by Ordinance No. 139 of the City of La Quinta ("City") , which established a redevelopment project known and designated as La Quinta Redevelopment Project Area No. 2 ("Proje ct Area No. 2"); and WHEREAS, the Agency desires to consider an Amendment to the Redevelopment Plan that increases the limitation on the number of dollars to be allocated to the Agency from Project Area No. 2. Said Amendment would not modify the boundaries of Project Area No. 2; and WHEREAS, a Preliminary Plan ("Preliminary Plan") has been formulated and was approved by the Planning Commission on September 9, 2003; and WHEREAS, the objectives of Project Area No. 2, as well as the public health, safety, and welfare would be furthered by the proposed Amendment to the Redevelopment Plan. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE LA QUINTA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: 1. Each of the above recitals is true and correct and this Board so finds and determines. 2. - The Preliminary Plan, attached hereto and incorporated herein, is hereby accepted and approved. Resolution RA 2003- Redevelopment Preliminary Plan Project Area No. 2 Adopted: September 16, 2003 3. The Executive Director is authorized and directed to make such transmittals as required pursuant to Section 33327of the Health and Safety Code, including confirming that there shall be no change to the base roll. PASSED, APPROVED and ADOPTED this 16th day of September, 2003, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Terry Henderson, Chair La Quinta Redevelopment Agency ATTEST: JUNE S. GREEK, CMC, Agency Secretary La Quinta Redevelopment Agency (Agency Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency 119 La Quinta Redevelopment Project No. 2 Amendment September 2, 2003 La Quinta Redevelopment Agency 7&495 Calle Tampion La Quinta, California 92253 Rosenow Spevacek Group, Inc. 217 North Main Street, Suite 300 Santa Ana, California 92701-4822 Phone: (714) 541-4585 Fax: (714) 836-1748 E-Mail: info@webrsg.com 113 a Pr�lirninary Plan La Quinta Redevelopment Project No. 2 Amendment Introduction ............................................................................... I Project Area Location and Description.....................................2 General Statement of Planning Elements.................................2 LandUses....................................................................................................... 2 General Statement of Proposed Layout of Principal Streets .................... 3 General Statement of Proposed Population Densities .............................. 3 General Statement of Proposed Building Intensities ................................. 3 General Statement of Proposed Building Standards ................................. 4 Attainment of the Purposes of the Redevelopment Law .......... 4 Consistency with the General Plan of the City ......................... 4 General Impact of the Proposed Project upon the Residents of the Project Area and Surrounding Neighborhoods ...................4 Exhibit A - Project Area Map ..................................................... 5 114 G:,wPoocs\oOCUMEN SV3ROJAREA2PRUI Pt.M-DOc 7 Preliminary Plan La Quints Redevelopment Project No. 2 Amendment This document is the Preliminary Plan ("Plan") for the proposed amendment to the La Quinta Redevelopment Project Area No. 2 Redevelopment Plan ("Redevelopment Plan"). Its purpose is to provide a general description of the amendment the La Quinta Redevelopment Agency ("Agency") in contemplating. If this Plan is approved by the City of La Quinta Planning Commission ("Planning Commission") and the Agency, the process would commence to amend the Redevelopment Plan for La Quinta Redevelopment Project Area No. 2 ("Redevelopment Plan") to increase the limit on the cumulative tax increment revenue from $400,000,000 to $1,500,000,000. This increase is being proposed in order to continue with projects and programs that eliminate blight, to fund new affordable housing programs and projects, and to accommodate repayment of existing bond and other debt obligations. The Redevelopment Plan was adopted in 1989 and subsequently amended in 1994 to incorporate modifications required by AB 1290. Since 1989, the Agency has been actively implementing redevelopment projects and programs that address blight, correct infrastructure deficiencies, increase and improve the supply of affordable housing, and stimulate economic development. In accordance with Section 33324 of the California Community Redevelopment Law ("Lave'), this Plan must: • Describe the boundaries of the La Quinta Redevelopment Project Area No. 2 ("Project Area"); • Contain a general statement of land uses and of the layout of principal streets, population densities, building intensities and standards for the Project Area; • Show how the purposes of the Law would be attained by redevelopment of the Project Area; • Show how redevelopment within Project Area is consistent with the community's general plan; and 11) ROSENOW SPEVACEK GROUP, INC. PAGE 1 AMENDED PRELIMINARY PLAN LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT • Describe, generally, the impact of the project upon residents of the Project Area and surrounding neighborhoods. The Project Area is located in the city of La Quinta, County of Riverside, California. The Project Area includes commercial residential and institutional land uses and is approximately 3,116 acres in size. Encompassing the northern area of the City, the Project Area is bounded by Avenue 50 to the south, Fred Waring Drive (Avenue 44) to the north, Washington Street to the west, and Jefferson Street to the east. The Project Area also includes property west of Washington Street, north of the prolongation of the future alignment of Avenue 48; property surrounding Point Happy, north of Highway 111 and west of Washington Street; and property easterly of Jefferson Street and north of Highway 111. The Amendment will not modify the planning elements that guide implementation activities. The planning elements contained in the Redevelopment Plan mirror the applicable provisions of the General Plan and all other state and local codes and guidelines, as they may be amended from time to time. Land uses The Amendment will not modify permitted land uses. Permitted land uses will continue to be those allowed by the General Plan, as it is constituted today or is hereafter amended. Current permitted General Plan land uses are as follows: Low Density Residential (LDR) [2-4 du/ac] Medium Density Residential (MDR) [4-8 du/ac] High Density Residential (HDR) [8-16 du/ac] Regional Commercial (RC) Community Commercial (CC) Neighborhood Commercial (NC) 116 ROSENOW SPEVACEK GROUP, INC. PAGE 2 0 AMENDED PRELIMINARY PLAN LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT Tourist Commercial (TC) Office Commercial (0) Major Community Facilities (MC) Commercial Park (CP) Parks and Recreation (P) Open Space (OS) Water (W) General Statement of Proposed Layout of Principal Streets The Amendment will not change the layout of principal streets. Exhibit A presents a map of the Project Area that identifies the principal streets. These include: Highway 111, Avenue 50, Avenue 48, Avenue 46, Fred Waring Drive (Avenue 44), Jefferson Street, Dune Palms Road, Adams Street, and Washington Street. The layout of principal streets, and those that may be developed in the future shall conform to the General Plan as currently adopted or is hereafter amended. General Staternent of Proposed Populatilon Densities The Amendment will not change population densities. As provided in the Redevelopment Plan, population densities will conform to the General Plan and zoning code, as currently adopted or as hereafter amended, and other applicable codes and ordinances. General Statement of Proposed Building Inten dfos The Amendment will not change building intensity, which shall continue to be controlled by limits on the: Percentage of the building site covered by the building (land coverage); Size and location of the buildable area on the building site; and Height of the building. These limits shall be in accordance with the General Plan and zoning code, as it now exists or is hereafter amended. ROSENOW SPEVACEK GROUP, INC. PAGE 3 llf 10 AMENDED PRELIMINARY PLAN LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT General Statement of Proposed Building Standards The Amendment will not change building standards. Building standards shall continue to conform to applicable codes and ordinances. The Project Area was previously selected because it was determined to be a blighted area as.then defined by the Law. The Redevelopment Plan contains a $400,000,000 tax increment revenue limit; revenue projections indicated that would be achieved in fiscal year 2020-21, 19 years prior to the year the Redevelopment Plan expires. If the existing tax increment limit is not increased, then the Agency must cease all redevelopment and affordable housing activities by 2010 and reserve fund to retire the Project No. 2 tax Allocation Bonds, Series 1998, and repay outstanding City General Fund loans. This would impair the Agency's ability to address the remaining blighting conditions within the Project Area, and significantly limit the Agency's ability to fund new affordable housing initiatives. Addressing remaining blight and the provision of affordable housing attain the purposes of the Redevelopment Law. Because land uses, transportation, and other development standards incorporate existing General Plan policies, this Plan is consistent with the General Plan. This Plan does not propose to institute additional land use policies not otherwise permitted by the General Plan. The Amendment will improve economic and physical conditions, and expand affordable housing opportunitities. By amending the Redevelopment Plan, the Agency will gain additional financial capacity to facilitate additional infrastructure improvements, enhance economic development activities, improve community facilities, and improve existing and provide new affordable housing opportunities. ROSENOw SPEVACEK GROUP, INC. PAGE 4 118 11 Preliminary Plan La Quirata Redevelopment Project No. 2 Amendment its ROSENOW SPEVACEK GROUP, INC. PAGE 5 12 �at�y 4��uli�fw COUNCIL/RDA MEETING DATE: September 16, 2003 ITEM TITLE: Discussion of Water Management Plan and Conceptual Grading and Drainage Plan for SilverRock Ranch RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: L PUBLIC HEARING: Continue discussion of the draft water management plan and the conceptual grading and drainage plan. FISCAL IMPLICATIONS: None. BACKGROUND AND OVERVIEW: On June 17, 2003, the Agency Board approved a contract with GMA International for master plan coordination services. The scope of work includes the preparation of a water management plan (via a subcontract with PACE Engineering); a conceptual grading and drainage plan; conceptual perimeter landscape and project entry plans; review and analysis of the golf course design; and project website maintenance. GMA International and PACE Engineering have completed a draft water management plan; the executive summary is included as Attachment 1. Gil Martinez of GMA International and staff from PACE Engineering will be present to review the draft plan, answer questions, and receive Agency comments. Gil Martinez will also discuss the conceptual grading and drainage plan (Attachment 2). The conceptual grading and drainage plan introduces vertical elements into the conceptual master plan, moving it from a two-dimensional to a three-dimensional depiction. The conceptual grading and drainage plan is important to both the civil engineer and golf course architect, as it becomes the basis for the mass grading plans and specifications, and is incorporated into the golf course design. 120 Lastly, GMA will update the Agency and solicit input on the project entry monumentation (Attachment 3). GMA has prepared alternative entry concepts and will review these alternatives with the Agency. Respectfully submitted, Mark Weiss, Assistant Executive Director Approved for submission by: X7 4-1 Thomas P. Genovese, Executive Director Attachments: 1. Water Management Plan Executive Summary 2. Conceptual Grading and Drainage Plan 3. Alternative Entry Concepts 2 121 SILVER ROCK RANCH WATER MANAGEMENT PLAN DRAFT EXECUTIVE SUMMARY I. Introduction ATTACHMENT 1 Silver Rock Ranch is a proposed golf course/resort development in the City of La Quinta, California. The 525 acre site will contain two (2) 18-hole golf courses (Tournament Course and Resort Course) and various resort and hotel facilities (See Figure 1). The primary goals for this Water Management plan are to: - Determine project water needs for irrigation & domestic water use. - Determine project primary water supply volume and sources. - Determine project water alternatives related to demand & supply. - Establish project water conservation measures to ensure compliance with established irrigation guidelines from CVWD. II. CVWD Project Water Supply Allocation (Irrigation) Current guidelines are directed by the Coachella Valley Water District to determine the maximum allowable annual water supply allowance on projects in the Coachella Valley. Per the current design criteria developed by CVWD the formula for the annual maximum irrigation (non -potable) water supply allocations is: MWA = ET. x C x Area x (1712") Where: MWA = Maximum Water Allowance in Acre -Feet (AF) ETo = Evapotranspiration Rate' Area = Landscape Area = 471 Acres 2 C Prior to 2003 = ET Adjustment Factor = 0.8 C Current = ET Adjustment Factor = 0.6 ' Based on Zone 2 ETo rates 74.6"/yr Prior to 2003 and 86.82"/yr After June 2003. 2 Based on Preliminary Master Plan provided by GMA dated 3/13103. The maximum water allowance for this project is as follows: Table 1 MAYIUIIIU WATER ALLOWANCE PRE AND POST JUNE 2003 CVWD Maximum Water Allowance AF Prior to June 2003 * 2,342 AF Current 1,574 AF * Note: June 2003 CVWD reduced the allowable irrigation supply rate by 25%. 122 3 coo: ��is/C��A� �wb a.am (c�Coll Silver Rock Ranch — Executive Summary September 2003 Draft Water Management Plan 7645E III. Proposed Land Use & Irrigation Water Demand Based on the total project area of 525 acres, the table below summarizes the proposed land use for the project and its corresponding landscape area (allocated among the five primary landscape zones). Table 2 PROPOSED PROJECT LAND USE & IRRIGATION AREA SUMMARY Landscape Atea SAC) Land Use Description Impermeable turf Lake Tree & Deser# Landscape Non Irfigated Gross Area Area (ACj Area Area Shrub Area t)esert (ACj Area 1_6 tdscape TOURNAMENT 18 Hole COURSE Goff Course 0 100 10 30 23 23 185 18 Hole RESORT COURSE Goff Course 0 91 9 22 14 14 150 CITY . � PARK/GOLFACADEMY 0 - 27 0 10 4 4 45 GOLF PRACTICE AREA 0 8 0 0 1 1 10 GOLF CLUBHOUSE/C. CTR 4 1.4 0 0.5 0 0 6 GOLF MAINTENANCE FACILITY 4 0.8 0 0.3 0 0 5 RESORT HOTEL 350 Rooms 8 3.9 0 1.3 1 1 15 BOUTIQUE HOTEL 100 Rooms 7 1.5 0 0.8 0 0 9 CASITAS/RESIDENCES 160 Rooms 14 6.6 0 2.3 1 1 25 SPECIAL USE AREA 50 Rooms 3 1.3 0 0.4 0 0 5 RESORT RETAIL 250 Rooms 4 5.1 0 1.7 1 1 13 MULTI -USE TRAILS/PARKS 0 0 0 4.9 10 10 25 VILLAGE & CASITAS LAKES 0 0 14 0 0 0 14 ROADS 1 9 0 0 9.1 0 0 18 _ TOTAL 53 247 33 83 55 55 525 Of the total project 525 Acres, 471 acres are proposed landscape areas which include turf, lake, trees/shrubs, and desert landscaping. 124 5 Silver Rock Ranch — Executive Summary September 2003 Draft Water Management Plan 7645E With the landscaped areas above, the water usage for these areas were determined for four alternative project conditions: 1. Case #1: Proposed project with CVWD maximum allowable water usage calculations prior to June 2003. a. Prior to 2003, the adjustment factors used to determine the maximum allowable water allowance was 25% higher than current standards resulting in 25% more water allowed. b. Use of medium water use trees and shrubs with more than enough water being used. Trees and shrubs are spray irrigated. c. Cool and warm weather turf is utilized using conventional turf rotor irrigation. d. Use of low water use desert landscaping with adequate irrigation to maintain vegetation. Desert landscaping is spray irrigated. e. The lakes use less water per acre than the trees and shrubs. 2. Case #2: Proposed project with current CVWD guidelines and irrigation efficiencies. a. Current standards (post 6/03) for maximum water allocations are 25% less. b. Use of medium water use trees and shrubs with adequate irrigation to maintain vegetation. A drip irrigation system is used. c. Cool and warm weather turf is utilized using turf rotor irrigation. d. Use of low water use desert landscaping with adequate irrigation to maintain planting. Desert landscaping uses drip irrigation system. 3. Case #3: Proposed project with improved irrigation efficiencies and water management conservation measures. a. Use of medium water use trees and shrubs with adequate irrigation to maintain vegetation. A drip irrigation system is used. b. Efficient irrigation design using new technology is used with advanced data management features. c. The same cool and warm weather turf is still utilized with a more efficient irrigation system. d. Use of low water use desert landscaping with adequate irrigation to maintain vegetation. Desert landscaping uses drip irrigation system. e. The grading and drainage for the project is coordinated to allow runoff to be captured by the lakes which hold stormwater runoff and nuisance flows (i.e., overspray during irrigation, etc.) and lead to a decrease in water use for the lakes. 4. Case #4: Project plan to accommodate 33% reduction in water supply capacity. a. Landscape area reduction in the tournament course, the resort course; and the lakes is used to determine the estimated water usage. The total area reduction resulted in a decrease in the area of landscaping areas including turf, lake, trees/shrubs, and desert landscaping (See Graph 1) PACE Silver Rock Ranch — Executive Summary September 2003 Draft Water Management Plan 7645E b. All assumptions for Option #3 above are used to determine the estimated water usage. c. The total area of turf for the two golf courses is reduced 30%. d. The 33 acres of lakes has been completely removed and replaced with canyons. e. A 25% reduction in the amount of trees and shrubs is implemented for this case. f. There's a 27% reduction in the amount of irrigated desert landscaping. g. More non -irrigated desert vegetation is used for the landscaping. Figure 1.0 — Landscape Area Comparison Proposed Project Project w/ 33% Reduction in Water Allocation 55 17 51 83 0 247 33 222 ■ Turf ■ Lake o Tree & Shrub t7 Desert landscape ® Turf ■lake o Tree & Shrub l7 Desert landscape The estimated water usage is then calculated using plant factors and irrigation efficiency based on the CVWD published guidelines. The result is shown on Figure 2. 25W 2000 3 1500 3 1000 3 0 Figure 2.0 - Annual Irrigation Water Demand Comparison (Acre Feet per Year) CVWD Allowable Prior to &2003 Proposed Project And Standard Proposed Project 4 Improved Proposed Project Assuming Irrigation per CVWD Conservation & Irrigation Additional 33% Reduction in Efficiencies Water ANocation t Estimated Irrigation Wader Usage `Current CVWD Water Allocation Silver Rock Ranch - Executive Summary September 2003 Draft Water Management Plan 7645E Figure 3 shows the comparison of water usage between the four options described here for irrigation (non -potable) water demand. Figure 3.0 - Irrigation Water Demand Comparison ®CVWD Allowable Prior to 6/2003 ■ Proposed Project w/ Standard Irrigation per CVWD O Proposed Project w/ Improved Conservation & Irrigation Efficiencies O Proposed Project Assuming Additional 33% Reduction in Water Allocation Turf Lake Tree & Shrub Desert Landscape IV. Backup Water Supply Sources As the primary irrigation water source, it is critical for the project to have adequate and secure backup water supply sources from the All American Canal under the jurisdiction of CVWD. CVWD's water order from the Colorado River has been cut earlier this year 2003 which resulted in the reduction of canal water for the golf courses in the area. The Coachella Valley Water District is trying to resolve the issue. However, they have made it mandatory that all golf courses in the area both future and existing obtain a backup water source. The backup water sources for the Silver Rock Ranch project are the following: 1. Water stored within the project lake system. Although a short term solution, for the 33 acres of lake proposed in the project, 11 million gallons of water can be used per foot of water depth within the lakes. On a temporary basis the lakes can be allowed to be drawn down to provide a backup water supply. 11 million is stored with the top 1 foot of the lakes and this amount of water would provide approximately 5 days of average irrigation supply to the project. 2. Additionally, the project lake and irrigation system will be designed to accommodate the use of high quality reclaimed water (CA Title 22 treated waste 127 8 Silver Rock Ranch — Executive Summary September 2003 Draft Water Management Plan 7645E water) if it were to become available locally. Based upon the small amount of waste water generated from the project it is currently not feasible for the project to consider a reuse system. In the future when more reclaimed water can be planned for and routed to the Silver Rock Ranch project, the use of reclaimed water can be beneficial and supplement the backup water source. i� 128 g :l XAft. 7bO-Mod" tOPOA64f. 7645-P-0 M-Ado Dwook 1; LTSWG 190; 0; AcW Vdr. - Wk LMS T"; Affaidn ■ I ETITRANGE ROAD TELr ........... ME 6ASKAS j6ANTAS Al 4p AtT JIM 7 12T w m c°die—.,...�°°° ��{;'ll, `�� , I� I`i1, `� LEM AMWMMIE LOCATM OF Pavem WIL AFFROMTE UXATM OF Trmn soma N.H. F*A=F%C A CIVIL. EENOIN &A eUWA CA p N-ift mWAq - Tab: LgppAl 51: dis adr an 51P. A 2M at 0132 Pm 10 Silver Rock (Ranch — Executive Summary September 2003 Draft Water Management Plan 7645E V. Domestic Water Demands & Supply The domestic water demand is computed based on the following table: Table 3 POTABLE WATER DEMAND - Land Use: - {oescription -; Equivalent 46s-dent"a1 : U"itro ERt)ennanPIP Annual' me tic �! AF TOURNAMENT COURSE 18 Hole Goff Course 1 0.7 RESORT COURSE 18 Hole Golf Course 1 0.7 CITY PARK/GOLFACADEMY 2 1.4 GOLF PRACTICE AREA 1 0.7 GOLF CLUBHOUSE/C. CTR 10 7 GOLF MAINTENANCE FACILITY 5 3.5 RESORT HOTEL 350 Rooms 161 112.7 BOUTIQUE HOTEL 100 Rooms 46 32.2 CASITAS/RESIDENCES 160 Rooms 74 51.8 SPECIAL USE AREA 50 Rooms 23 16.1 RESORT RETAIL 250 Rooms 115 80.5 MULTI -USE TRAILSIPARKS 1 0.7 VILLAGE & CASITAS LAKES 0 0 ROADS 0 0 TOTAL 440 308 Note: The potable water demand is based on the following: 1. 1 hotel or 1 casita unit has 1.65 people per unit. 2. 1 hotel/casita is equal to 0.45 Equivalent Residential Unit (ERU). 3. 1 ERU is equal to a single family home (detached) with 2.5 people per home. 4. 1 ERU is equal to 2.5 people times 250 gallons per person per day. Therefore, 1 ERU is 625 gallons per day. 130 Silver Rock Ranch — Executive Summary September 2003 Draft Water Management Plan 7645E Figure 5 shows the total project water demand including irrigation and domestic water demands. Figure 5.0 - Total Project Water Demand 3" 2500 2000 1500 3 1000 500 0 CVW D Atiowable Prior to W2003 Proposed Project W Standard Proposed Project w/ Improved Proposed Project Assuming Irrigation per CVWD Conservation 3 krigation Additional 33% Reduction in Efficiencies Water Albcation INDomestic ■ irrigation O Total NOINT- 12 Silver Rock Ranch — Executive Summary September 2003 Draft Water Management Plan 7645E VI. Outstanding Items Necessary for Finalization of Draft Water Management Plan In order to finalize the water management plan we will need: 1. Final estimates of landscape areas from the Palmer Group and GMA including breakdown of areas for turf, trees/shrubs, irrigated desert landscape, non irrigated desert landscape, and lakes. 2. Project Landscape Architect to establish landscape plant pallet to adhear to available irrigation water supply allowance. Adjust to overall landscaping plan to meet the aesthetic vision of the project within the water supply limit of the project. 3. Further develop project water conservation measures a. Master irrigation control system for entire project - Golf - Resort - Median and common areas - Miscellaneous By having the entire project irrigation system integrated into a single highly controlled and automated system the irrigation efficiency is improved by 5 to 10% j b. Automated irrigation technologically advanced sensors and control system c. Design of water efficient lake system - Depth - Aeration - Linear - Drainage (storm and nuisance flow capture) j 4. Review Water Management Plan and calculations with CVWD. 5. Production Wells within the project site (See Figure 4). a. Four existing production wells were found at the site, of the four, one is a collapsed well, one is not viable, and the remaining two are being video logged the week of September 8, 2003. b. One well with a recommended minimum capacity of 2800 gallons per minute should be adequate to provide the irrigation water demand for the site on a long term basis. c. At a minimum we recommend that one new well be drilled out and outfitted or a combination of existing and new wells be available to provide the project irrigation water at a rate of 2800 to 3500 gpm d. The wells would only be used in the event CVWD terminates or reduces canal allocation and at that point Silver Rock Ranch project would be in a x similar situation as the surrounding projects and limited to the use of available G.W. supplies 6. Resolve the following miscellaneous issues: a. Working w/ GMA on the coordination of the master grading & drainage plan b. Incorporate the sediment/debris basins from the toe of the mountain slope to within the golf course. c. Ensure the golf course grading includes substantially lowered golf areas to accommodate flooding potential. ATTACHMENT 2 t p xL ' f � opium E 5 ", > x > silt boy V tkA x ��kIN x�:: x b !! N` l Fq F {$' F Autotax, E �� f �, %, song Conceptual Mas trading Flan it er- Rock Ranch ATTACHMENT 3 1 10 15 lQ5 16