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2007 09 04 CCea# 4 4 Oda City Council agendas are available on the City's web page @ www.la-quinta.org CITY COUNCIL AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting TUESDAY, SEPTEMBER 4, 2007 — 3:00 P.M. Beginning Resolution No. 2007-079 Ordinance No. 444 CALL TO ORDER Roll Call: Council Members: Henderson, Kirk, Osborne, Sniff, and Mayor Adolph PUBLIC COMMENT At this time, members of the public may address the City Council on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. CLOSED SESSION NOTE: Time permitting the City Council 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 acquisition of real property is considered. 1. CONFERENCE WITH CITY'S LEGAL COUNSEL REGARDING POTENTIAL LITIGATION WITH SHEA TRILOGY TENTATIVE MAP 30023, PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (b) (1) and (c) City Council Agenda 1 September 4, 2007 RECESS TO CLOSED SESSION RECONVENE AT 4:00 P.M. 4:00 P.M. PLEDGE OF ALLEGIANCE PUBLIC COMMENT At this time members of the public may address the City Council on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. CONFIRMATION OF AGENDA PRESENTATIONS — NONE WRITTEN COMMUNICATIONS — NONE APPROVAL OF MINUTES - NONE CONSENT CALENDAR NOTE: Consent Calendar items are considered to be routine in nature and will be approved by one motion. 1. ACCEPTANCE OF VILLAGE ROUNDABOUT IMPROVEMENT PROJECT NO. 2004-09, CDBG PROJECT NO. 4.LQ036. 2. ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT AND LICENSE AGREEMENTS FOR CROSSING FEDERAL LANDS FOR JEFFERSON STREET, AVENUE 52, AVENUE 50, AND MADISON STREET, AND APPROVAL OF AN INDEMNIFICATION AGREEMENT AMONG CORAL CANYON, LLC, MINISTRELLI DEVELOPMENT, INC. AND THE CITY OF LA QUINTA FOR THE EXTENSION OF JEFFERSON STREET ACROSS FEDERAL LANDS. City Council Agenda 2 September 4, 2007 BUSINESS SESSION 1. CONSIDERATION OF BOB HOPE CLASSIC PLAYER SPOTS. A. MINUTE ORDER ACTION STUDY SESSION - NONE DEPARTMENT REPORTS - NONE MAYOR'S AND COUNCIL MEMBERS' ITEMS - NONE PUBLIC HEARINGS - NONE ADJOURNMENT The next regular meeting of the City Council will be held on September 18, 2007, commencing with closed session at 3:00 p.m. and open session at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta City Council meeting of September 4, 2007, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 1 1 1, on August 31, 2007. DATED: ugust 31, 2 07 VERONICA J. NTECINO, City Clerk City of La Q ta, California City Council Agenda 3 September 4, 2007 Public Notices The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's Office at 777-7103, twenty-four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the City Council, arrangement should be made in advance by contacting the City Clerk's Office at 777- 7103. A one (1) week notice is required. If background material is to be presented to the City Council during a City Council meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting. City Council Agenda 4 September 4, 2007 � T L0j" c V yr CFM OF TN4 9� NOTICE AND CALL OF REGULAR MEETING OF CITY COUNCIL TO THE MEMBERS OF THE CITY COUNCIL OF THE CITY OF LA QUINTA AND TO THE CITY CLERK: NOTICE IS HEREBY GIVEN that a regular meeting of the,Council of the City of La Quinta is hereby called to be held on TUESDAY, SEPTEMBER 4, 2007, commencing at 3:00 P.M. in the Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. Dated: August 31, 2007 DECLARATION OF POSTING I, Veronica J. Montecino, City Clerk of the City of La Quinta, do hereby declare that the foregoing Notice of Meeting Cancellation dated August 31, 2007, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 111 on August 31, 2007. DATED: gust 31, 2007 Veronica J. Mdntecino, City Clerk City of La Quinta, California Notice and Call of Meeting 1 September 4, 2007 I C' COUNCIL/RDA MEETING DATE: Seotember 4, 2007 ITEM TITLE: Acceptance of Village Roundabout Improvement Project No. 2004-09 CDBG Project No. 4.LQ036 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Accept Village Roundabout Improvement Project No. 2004-09 CDBG Project No. 4.LQ036, as 100% complete; authorize the City Clerk to file a Notice of Completion with the Office of the County Recorder; authorize staff to release retention in the amount of $45,372, thirty-five days after the Notice of Completion is recorded. FISCAL IMPLICATIONS: The following is a budget summary: Budget Total Amount spent through 8/23/07 Amount Available Original Contract Contract Change Order Nos. 1-3 Revised Contract Amount Amount Contractor was paid to date Remaining Fiscal Commitment Retention Remaining for Release Amount Remaining to be Billed $767,325 $465,927 $301,398 $418,945 $34,772 $453,717 $ 402, 591 $51,126 $45,372 $5,754 Adequate funding is available to pay the contractor's remaining billing ($5,754) and retention ($45,372) for project closeout. CHARTER CITY IMPLICATIONS: None. This project is partially funded with state and federal monies. Therefore, the contractor is required to pay prevailing wages. BACKGROUND AND OVERVIEW: On April 3, 2007, the City Council adopted a Resolution for approval of proposals, reprogramming funds, and authorizing the City Manager to submit applications to the Riverside County Economic Development Agency for Community Development Block Grant (CDBG) funds for Fiscal Year 2007/2008. The Village Traffic Circle was included within the approved application to receive an additional $160,000 of CDBG funding during Fiscal Year 2007/2008. On February 6, 2007 the City Council approved the plans, specifications, and engineer's estimate for this project and authorized the City Clerk to advertise for bids. On March 21, 2007, Contreras Construction Co. submitted the lowest responsive bid in the amount of $418,945. On April 17, 2007, City Council acted to appropriate an additional $160,000 of Community Development Block Grant (CDBG) Funds and award a contract to the Contreras Construction Co., in the amount of $418,945, to construct the Village Traffic Circle Improvements, Project No. 2004-09. On May 31, 2007, a Notice to Proceed was issued with a 90 working day contract completion time starting June 4, 2007, and ending on October 9, 2007. Contract Change Orders extended the project to October 16, 2007. The project was deemed substantially complete on August 10, 2007. The project's construction effort is now deemed to be 100% complete and is in compliance with the plans and specifications. Prior to filing the Notice of Completion, staff must receive authorization from the City Council to approve this project as 100% complete and authorize the City Clerk to file a Notice of Completion. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Accept Village Roundabout Improvement Project No. 2004-09 CDBG Project No. 4.LQ036, as 100% complete; authorize the City Clerk to file a Notice of Completion with the Office of the County Recorder; authorize staff to release retention in the amount of $45,372, thirty-five days after the Notice of Completion is recorded; or 2. Do not Accept Village Roundabout Improvement Project No. 2004-09 CDBG Project No. 4.LQ036, as 100% complete; do not authorize the City Clerk to file a Notice of Completion with the Office of the County Recorder; do not authorize staff to release retention in the amount of $45,372, thirty-five days after the Notice of Completion is recorded; or 3. Provide staff with alternative direction. Respectfully submitted, T' t1s4r son, P.E. ubctor/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Lai 04 F Z F`y OF'CNEO ITEM TITLE : Adoption of a Resolution Authorizing the City Manager to Execute Contract and License Agreements for Crossing Federal Lands for Jefferson Street, Avenue 52, Avenue 50, and Madison Street and Approval of an Indemnification Agreement among Coral Canyon, LLC, Ministrelli Development, Inc. and the City of La Quinta for the Extension of Jefferson Street Across Federal Lands RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: ale STUDY SESSION: PUBLIC HEARING: Adopt the attached resolution authorizing the City Manager to execute Contract and License Agreements for crossing federal lands for Jefferson Street, Avenue 52, Avenue 50, and Madison Street, approve Contract and License Agreement No. 06-07- L1502 (License) for the extension of Jefferson Street across federal lands, approve the Indemnification Agreement among Coral Canyon, LLC, Ministrelli Development, Inc. and the City of La Quinta for the extension of Jefferson Street across federal lands and authorize the City Manager to execute the agreement in the form and content acceptable to the City Manager and City Attorney FISCAL IMPLICATIONS: The Indemnification Agreement (Attachment 1) is drafted to require that all of the expenses and liabilities associated with the Bureau of Reclamation ("BOR") Contract and License Agreement be borne by Coral Canyon, LLC. The City will have to maintain Jefferson Street, Avenue 52, Avenue 50 and Madison Streets once they are constructed and accepted by City Council. Maintenance funds will be requested for these streets as part of future budget proceedings. CHARTER CITY IMPLICATIONS: 1•CTii:1A BACKGROUND AND OVERVIEW: The BOR Contract and License Agreement ("BOR License Agreement") (Attachment 2) is to extend Jefferson Street across federal lands. The license allows construction of a portion of a roadway across federal lands that are administered by the Bureau of Reclamation. It also allows for a Borrow Pit Use area and a Temporary Construction Use Area. The proposed roadway is to be located within portions of Secs. 28 and 29, T.6 S., R.7E, San Bernardino Meridian as shown in Attachment 3. Coral Canyon, LLC ("Developer"), a California limited liability company, is the proposed subdivider and developer of property in the City subject to the provisions of Tentative Tract No. 33444, which is currently known as Coral Canyon and lies south of Lake Cahuilla and the Quarry development (Attachment 4). As a condition of approval to Tract Map 33444, the Developer was required to work with the City, the BOR, and Coachella Valley Water District ("CVWD") to acquire the right-of-way needed from the BOR for the Jefferson Street realignment. In furtherance of this obligation, the Developer obtained the BOR License Agreement. In summary, the BOR License Agreement allows the use of the BOR property for a portion of the street improvement. The Agreement imposes certain obligations on the City, including the duty to construct and maintain the improvements and to hold the federal agencies harmless from any costs or liabilities relating to the use of the property. The Agreement further requires compliance with federal and state laws, and contains requirements relating to the discovery of cultural resources. The term of the license is 25 years. Beyond that, the City has the right to request a 25-year extension. Further extensions require a new application. The City staff and the City Attorney have concerns regarding the limited duration of the license. Unfortunately, we are informed by the developer that the BOR is not willing to negotiate the term, and that this is now part of the BOR's standard license agreement. Recent other agreements we have seen from the BOR have similar limitations. The condition of approval for Tract Map 33444 anticipated that the acquisition would be a dedication rather than a license with a limited duration. The staff and the City Attorney's concerns are based upon the possibility that after the expiration of the 25-year term, the BOR could require the roadway to be removed, and access to the lots would be eliminated. To put all future buyers on notice of this limitation, the City is requiring as a condition of the Indemnity Agreement that a notice be recorded on each lot identifying the limited duration of the BOR grant. The alternative would be to disapprove the Final Map based upon the inability to obtain the dedication referenced in the condition of approval to the Tentative Tract Map. Because this is beyond the control of the developer and the City, staff does not recommend this alternative. The Indemnification Agreement among Coral Canyon, LLC, Ministrelli Development, Inc. and the City clarifies that the City's obligations under the BOR License Agreement will be the responsibility of the developer rather than the City up until the time that the street improvements are accepted. From that point on, the City will be responsible for the maintenance of the street. As stated above, the Agreement also provides for the recordation of the notice to the lot owners regarding the limitation on the duration of the BOR License Agreement. The Indemnification Agreement has been completed in draft form. Counsel for Coral Canyon, LLC, and Ministrelli Development, Inc. is currently on vacation. It is possible that revisions may be necessary to the Indemnification Agreement upon his return and review of the Agreement. Therefore, staff requests that if the City Council approves the Agreement, the approval be subject to further minor modifications approved by the City Manager and the City Attorney. Staff anticipates that similar BOR Contract and License Agreements for Madison Street, Avenue 50 and Avenue 52 crossings over federal lands, including canals owned by the Federal government, will be coming to the City in the future due to other private developments or Capital Improvement Projects (Attachment 3). These BOR Contract and License Agreements will be virtually identical in content and form to the attached agreement for Jefferson Street and are not subject to negotiation by the City. In order to expedite processing, staff recommends that the City Council authorize the City Manager to execute these agreements. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 11 Adopt the attached resolution authorizing the City Manager to execute Contract and License Agreements for crossing federal lands for Jefferson Street, Avenue 52, Avenue 50, and Madison Street, approve Contract and License Agreement No. 06-07-L1502 (License) for the extension of Jefferson Street across federal lands, approve the Indemnification Agreement among Coral Canyon, LLC, Ministrelli Development, Inc. and the City of La Quinta for the extension of Jefferson Street across federal lands and authorize the City Manager to execute the agreement in the form and content acceptable to the City Manager and City Attorney; or 2) Do not adopt the attached resolution authorizing the City Manager to execute Contract and License Agreements for crossing federal lands for Jefferson Street, Avenue 52, Avenue 50, and Madison Street, do not approve Contract and License Agreement No. 06-07-1-1502 (License) for the extension of Jefferson Street across federal lands, do not approve the Indemnification Agreement among Coral Canyon, LLC, Ministrelli Development, Inc. and the City of La Quinta for the extension of Jefferson Street across federal lands and do not authorize the City Manager to execute the agreement in the form and content acceptable to the City Manager and City Attorney; or 3) Provide staff with alternative direction. Respectfully submitted, othy R. Jo asso .E. Public Works irecto /City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Indemnification Agreement 2. Contract and License Agreement 3. BOR Agreement Exhibits 4. Vicinity Map RESOLUTION NO. 2007- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT AND LICENSE AGREEMENTS FOR CROSSING FEDERAL LANDS FOR JEFFERSON STREET, AVENUE 52, AVENUE 50 AND MADISON STREET WHEREAS, Bureau Of Reclamation (BOR) Contract and License Agreements are or will be required for Jefferson Street, Madison Street, Avenue 50 and Avenue 52 to cross federal lands that are administered by the Bureau of Reclamation; and WHEREAS, Coral Canyon, LLC is the proposed subdivider and developer of property in the City subject to the provisions of Tentative Tract No. 33444, which is currently known as Coral Canyon and lies south of Lake Cahuilla and the Quarry development; and WHEREAS, As a condition of approval to Tract Map 33444, the Developer was required to work with the City, the BOR, and Coachella Valley Water District to acquire the right-of-way needed from the BOR for the Jefferson Street realignment; and WHEREAS, In furtherance of this obligation, the Developer obtained the BOR Contract and License Agreement which allows the use of the BOR property for a portion of the street improvement, imposes certain obligations on the City, including the duty to construct and maintain the improvements and to hold the federal agencies harmless from any costs or liabilities relating to the use of the property, requires compliance with federal and state laws, and contains requirements relating to the discovery of cultural resources; and WHEREAS, Staff anticipates that similar BOR Contract and License Agreements for Madison Street, Avenue 50 and Avenue 52 crossings over federal lands, including canals owned by the Federal government, will be coming to the City in the future due to other private developments or Capital Improvement Projects; and WHEREAS, These BOR Contract and License Agreements will be virtually identical in content and form to the agreement for Jefferson Street and are not subject to negotiation by the City; and WHEREAS, In order to expedite processing, staff recommends that the City Council authorize the City Manager to execute these agreements. Resolution 2007- Authorize City Manager to Execute BOR Contract and License Agreements Adopted: September 4, 2007 Page 2 NOW, THEREFORE, BE IT RESOLVED, by the La Quinta City Council, as follows: The City Council of the City of La Quinta approves Contract and License Agreement No. 06-07-Ll502 (License) for the extension of Jefferson Street Across federal lands. 2. The City Council of the City of La Quinta authorizes the City Manager to execute the BOR Contract and License Agreement for crossing federal lands for Jefferson Street and similar future BOR Contract and License Agreements for crossing federal lands for Avenue 52, Avenue 50, and Madison Street. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 4th day of September 2007, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California F-11111i111*119 VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California (SEAL) Resolution 2007- Authorize City Manager to Execute BOR Contract and License Agreements Adopted: September 4, 2007 Page 3 APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California ATTACHMENT 1 INDEMNIFICATION AGREEMENT THIS INDEMNIFICATION AGREEMENT (the "Agreement") is made and entered into this day of September, 2007, by and between Coral Canyon, LLC, a California Limited Liability Company ("Developer"), Ministrelli Development, Inc., a California Corporation ("Guarantor"), and the City of La Quinta, a California Municipal Corporation (the "City"). RECITALS A. Developer is the subdivider and developer of Tentative Map No. 33444 (the "Project") located in the City of La Quinta subject to the conditions of approval found in City Council Resolution 2005-082 ("Conditions of Approval"). B. The Conditions of Approval obligate Developer to construct certain improvements on Jefferson Street, generally described as follows, and more specifically described in the Conditions of Approval, #62, A 2) & A 3) as follows: (a) realign and widen Jefferson Street from its northerly terminus on Avenue 58 to Cahuilla Park Road, (b) realign and widen Jefferson Street from Cahuilla Park Road to the northerly boundary of Tentative Map No. 33444, herein referred to as (the "Required Improvements"). C. Guarantor is a California corporation which owns an interest in Developer. Guarantor has agreed to guarantee the performance of Developer's obligation in this Agreement. D. Developer has coordinated an application to the Department of Interior, Bureau of Reclamation ("BOR") to obtain a license over the necessary right-of-way for the portion of the Required Improvements which cross over the All American Canal Project, portions of Sections 28 and 29, T.6S., R. 7 E., San Bernardino Meridian, California. E. As a result of Developer's efforts, the BOR has transmitted to the City a proposed Contract and License No. 06-07-34-1-1502, a true and correct copy of which is attached hereto as Exhibit A ("BOR License Agreement"), and which is incorporated herein by this reference. F. In the normal course of subdivision development, the City does not accept off - site improvements or the right of way they are built upon until the improvements are completed to the satisfaction of the Director of Public Works and formally accepted by the City Council. G. Developer has requested that the City execute the BOR License Agreement in advance of the construction of the improvements, thereby necessitating this Agreement. AGREEMENT NOW, THEREFORE, it is agreed by and between the parties hereto as follows: 1. Responsibilities of Developer: Developer shall perform all of the obligations identified as being the obligation of the Licensee in the BOR License Agreement. These include, but are not limited to, making all required payments to the BOR, the construction of the Required Improvements, and indemnification of the United States and the BOR in accordance with Section 7 of the BOR License Agreement, all of the Miscellaneous Conditions specified in Section 9 of the BOR License Agreement, the requirements regarding discovery of Cultural Resources in Section 12 of the BOR License Agreement, the requirements and obligations relating to Hazardous Materials in Section 13 of the BOR License Agreement, and the compliance with all of the clean air and clean water regulations contained in Section 14 of the BOR License Agreement. Developer shall further be responsible for any other costs, expenses, and actions necessary to implement the BOR License, which implementation is to be at no expense to the City. The assumption of obligation by the Developer in this Section shall be without prejudice to its right to seek reimbursement from the City under the Developer Impact Fee program. 2. Responsibilities of Guarantor: As a material inducement to the City to execute the BOR License Agreement, Guarantor has agreed to be responsible for the obligations and duties of Developer to the extent the developer fails to or is otherwise unable to perform as required by this Agreement. 3. Responsibility of City: The City's obligation shall be: (1) to approve and execute the BOR License Agreement; (2) to accept the Required Improvements once they are completed in accordance with the approved Improvement Plans and provided they meet the approval of the Director of Public Works; (3) to undertake the normal maintenance of the Required Improvements once accepted; and (4) to apply for the 25-year extension referred to in Section 4(a) of the BOR License Agreement. The City shall have no obligation to replace the Requirement Improvements unless it deems it appropriate to do so in its absolute and sole discretion. 4. Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party of its contentions by submitting a claim therefor. The injured party shall continue performing its obligations incurred herein so long as the injuring party commences to cure such injuring action within ten (10) days of service of such notice and completes the cure within forty-five (45) days after the notification, or such longer period as may be necessary or agreed upon by all parties to this Agreement. 5. Attorneys' Fees. If any party commences an action against the other arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and legal costs from the losing party related to enforcement of the provisions of this Agreement. 6. Indemnification. Developer agrees to indemnify, defend, and hold City and its officers, employees, agents, representatives, and assigns ("City Indemnitees") harmless from and against any losses, claims, demands, actions, or causes of action ("Claims"), of any nature whatsoever, arising out of or in any way connected with the performance of Developer, its officers, employees, agents, or representatives under this Agreement, including costs of suit and reasonable attorneys' fees. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding in any way involving such Claims, Developer shall provide a defense to the City Indemnitees, or at the City's option, reimburse the City Indemnitees their costs of defense, including reasonable attorneys' fees, incurred in defense of such claim. In addition, Developer shall be obligated to promptly pay any final judgment or portion thereof rendered against the City Indemnitees. 7. City Officers and Employees. No officer or employee of City shall be personally liable to Developer or any successor -in -interest in the event of any default or breach by City or for any amount which may become due to Developer or to its successor or for breach of any obligation of the terms of this Agreement. 8. Term of Agreement. This Agreement shall remain in full force and effect following the date it has been executed by both parties, until the expiration of the BOR License Agreement. If the BOR License Agreement is terminated prior to the expiration of its 25-year term, Developer's obligations shall survive the termination and shall continue until completed. 9. Insurance. Developer shall concurrently with the execution of this Agreement, furnish the City satisfactory evidence of insurance of the kinds and in the amounts specified below. This insurance shall be kept in full force and effect by Developer in perpetuity and all premiums thereon shall be promptly paid by it. Each policy shall further state that it cannot be canceled without 30 days unconditional written notice to the City and shall name the City as an additional insured. Developer shall furnish evidence of having in effect, and shall maintain Workers Compensation Insurance coverage of not less than the statutory amount or otherwise show a certificate of self-insurance, in accordance with the Workers Compensation laws of the State of California. Failure to maintain the required amounts and types of coverage throughout the duration of this Contract shall constitute a material breach of this Contract. a. Commercial General Liability Policy The Contractor shall take out and maintain during the life of the Contract, a Commercial General Liability Policy, on an occurrence basis, with a minimum limit of not less than One Million Dollars ($1,000,000) combined single limit for bodily injury and property damage for any one occurrence and a Two Million Dollar ($2,000,000) annual project aggregate, for all of the following: i) Premises Operations, including Explosion, Collapse and Underground (X, C, and U) Coverage. ii) Completed Operations/Products, including X, C, and U Coverage. iii) Independent Contractors. iv) Blanket Contractual. v) Deductible shall not exceed One Thousand Dollars ($1,000). b. Commercial Business Auto Policy The Contractor shall take out and maintain during the life of this Contract a Commercial Business Auto Policy, on an occurrence basis, with a minimum amount of not less than One Million Dollars ($1,000,000) combined single limit for bodily injury and property damage, providing at least all of the following coverage: i) Coverage shall be applicable to any and all leased, owned, hired, or non - owned vehicles used in pursuit of any of the activities associated with this Contract. ii) Any and all mobile equipment, including cranes, which is not covered under said Commercial Business Auto Policy, shall have said coverage provided for under the Commercial General Liability Policy. iii) Deductible shall not exceed One Thousand Dollars ($1,000). 10. Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give to the other party or any person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To City: City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Attn: City Engineer (760)777-7075 To Developer: Coral Canyon, LLC Attn: (760) 771-1941 11. Assignment of Agreement. Neither party may assign its obligations hereunder to any assignee without the knowledge and with written consent of the other party hereto which other party shall not unreasonably withhold consent. Assignment may be made only to an assignee willing, financially capable, and competent to carry out the assignor's obligations. 12. General Provisions. A. Except as otherwise provided herein, the terms, conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns, and successors of the parties hereto. B. Neither party to this Agreement relies upon any warranty or representation not contained in this Agreement. C. This Agreement shall be governed by and interpreted with respect to the laws of the State of California. D. Any failure or delay by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies provided for herein. E. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. F. In the event that any provision or provisions of this Agreement are held unenforceable, all provisions not so held shall remain in full force and effect. G. 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 are formally bound to the provisions of this Agreement. 13. Condition Precedent. This Agreement shall become effective only if the BOR License Agreement is fully executed. 14. Disclosure of Limited Duration of BOR License. The BOR License Agreement provides in Section 4 that its initial term is for 25 years, and that an additional 25 years may be granted upon application and agreement of the parties thereto. The BOR License Agreement further provides that any further extension will be treated as a new application. Developer agrees to ensure that all lot purchasers shall be informed of the limitation on the duration of the license by way of a recorded notice in a form acceptable to the City Attorney and the Director of Public Works. Developer agrees that the City will not approve the recordation of the Final Map for Tract No. 33444 until and unless the approved notice to all lot purchasers is recorded simultaneously. [SIGNATURES ON FOLLOWING PAGE] IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY OF LA QUINTA: Thomas P. Genovese, City Manager Date ATTEST: Veronica Montecino, City Clerk City of La Quinta Approved as to Form: M. Katherine Jenson, City Attorney City of La Quinta Date Date CORAL CANYON, LLC Date Title: Ministrelli Development, Inc. By: Date Title: EXHIBIT United States Department of the Interior BUM, -AU OF RECLAVINHON Yuma Area Officc 14 a 301 Calle Agtia Safiuhi Yuma, Arizona 85,h4 YAO-7120 AUG o 8 2007 LND-6.00 Mr. Tim Jonasson City Engineer City of La Quinta P.O. Box 1504 La Quinta, CA 92247-1504 Subject: City of La Quinta — Contract and License to Extend Jefferson Street Across Federal Lands - Contract and License No. 06-07-34-LI502 (License) — All - American Canal Project, Coachella Canal Division, California Dear Mr. Jonasson: Enclosed are an original and two duplicate originals of the subject License. Tile License allows construction of a portion of a roadway across Federal lands that are administered by the Bureau of Reclamation (Reclamation). The proposed roadway is to be located within portions of sees. 28 and 29J. 6 S., R. 7 E., San Bernardino Meridian, California. If the License is satisfactory, please sign all copies and return them to this office. Please include official documentation, such as a resolution approved by the City Council, which clearly shows that the signatory is authorized to act oil behalf of the City of La Quinta. Once the Licenses are signed by the City or La Quinta and Coachella Valley Water District. Reclamation will prepare a final reconciliation of your reimbursable account for administrative costs. Once this account is settled, a fully executed duplicate original of the License will be provided for your files. Please reference License No. 06-07-34-LI 502 in all communications regarding this matter. If you have questions, please contact Mr. Roy Romines, Really Specialist. at 928-3 )4 1-83 0) 1 Sul rely. 4 I k�pr ZC thia Hoed, Dii �tor Resource Management Office Enclosure in Triplicate cc: Mr. Steven B. Robbins General Manager - Chief Engineer Coachella Valley Water District P.O. Box 1058 Coachella, CA 92236 (W/O encls) Contract No-06-07-34-L 1502 LNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION LOWER COLORADO REGION YUMA AREA OFFICE YUMA, ARIZONA BOULDER CANYON PROJECT ALL-AMERICAN CANAL SYSTEM, COACHELLA DWISION, CALIFORNIA CONTRACT AND LICENSE I THIS CONTRACT AND LICENSE (License), is made this day of _ ___ 2 2p____, pursuant to provisions of the Reclamation Act of June 17, 1902 (32 Stat. 388); 1950 (6(64 3 Reclamation Project Act of August 4, 1939 (53 Stat. 1187), as amended August 18, 4 Stat. 463); and acts amendatory thereof or supplementary thereto; and the provisions of 43 C.F.R. 5 § 429, between the United States of America, acting through the Bureau of Reclamation, 6 hereinafter refereed to as "Reclamation," represented by the officer executing this License, 7 hereinafter referred to as the "Area Manager," and the City of La Quinta, hereinafter referred to 8 as the "Licensee," with the concurrence of the Coachella Valley Water District, hereinafter 9 referred to as the "District." 10 - II WITNESSETW 12 13 WIIEREAS, the Licensee desires the authorization of Reclamation and a right-ol-use to 14 construct, own and maintain a portion of a roadway within, on, over andlor across certain lands 15 which were withdrawn for Bureau of Reclamation project purposes and certain lands that wcre 5 Star. 16 1928 rand tile ReltabaBoulder li alien an Betterment A t of` OctoherAct 7 4t 94`� (d_3t}Stat, 457) ),as Decemb� p nded er 1 18 and 19 20 WHEREAS, THE Licensee also desires the authorization of Reclamation and a 21 ional on administered withdrawn 22 located adjacent to he roadway for aatBorrow Pit (JsetArea and Temporary Construction Ilands sc 23 Area; and 24 25 WHEREAS, the granting of such authorization and right -of -use by Reclamation and the 26 exercise of such right -of use by the Licensee under the terms and conditions herein provided will 27 be compatible with the purposes for which the lands are administered on behalf of the 29 United States by Reclamation; and 29 30 WHEREAS, the purpose of this. License is to grant the Licensee authorization and a 31 right -of -use to construct, own and maintain that portion of the Jefferson Street Extension that 32 crosses Reclamation lands further defined herein below; and 33 34 WHEREAS, the providers of various public utilities intend to install and/or construct 35 utilities and/or other improvements throughout the Jefferson Street Extension. Any such 36 provider intending to install or construct any utilities and/or other improvements, not specifically 37 authorized by this License, across Reclamation lands shall make separate application to 38 Reclamation for a Contract and License authorizing an individual right -of -use, under terms and 39 conditions set forth therein, prior to any construction or installation. 40 41 NOW, THEREFORE, subject to the conditions hereinafter set forth, Reclamation does 42 hereby grant to the Licensee authorization and a right -of -use to construct, own and maintain that 43 segment of the Jefferson Street Extension, hereinafter referred to as "Facilities" within, on, over 44 and/or across Reclamation lands defined herein below. The parties hereto agree as follows: 45 46 1. DESCRII'1ION OF RECLAMATION LANDS: 47 48 Portions of the N'/iNE`/a, section 29, and the W'l/zNWY< ofsection 28, Township 6 49 South, Range 7 East, San Bernardino Meridian, County of Riverside, State of 50 California, said area contains approximately 26,28 acres consisting of 14.0 acres 51 of long tern use area and 12.28 acres of temporary use area, more or less. 52 53 The above described area, hereinafter refeiied to as "the Premises- is further described by metes 54 and bounds on Exhibit A and is also depicted on Exhibit B and B-2. Said Exhibits A, B, and B-2 55 are attached hereto and by this reference made a part hereof. 56 57 2. SIJCCF.SSORS AND ASSIGNABILITY; This Lle@use is personal, revocable and 58 nontransferable and shall not be eanstrued as granting to the Licensee any eight, title or interest in 59 the Premises or any other property, facilities or works of the United States and/or Reclamation. 60 This License shall be binding upon and inure to the benefit of the successors and assigns of the 61 parties hereto; provided, however„ that no assignment or transfer of any of the rights ol'the 62 Licensee hereunder shalt be made without the prior wrilten consent of Reclamation. 63 64 3, OWNERSHIP OF FAC1L1T1ES: The Licensee shall at all tunes and at its sole expense, 65 without any expense and/or liability whatsoever to the United States and/or Reclamation, 66 construct, own, maintain and make necessary repairs to or replacements of its Facilities in a Contract No. 06-07-34-1-1502 67 manner so as not to interfere with the proper use and operation of or cause injury or damage to 68 any property, facilities or works of the United States an&or Reclamation. The Licensee shall 69 reimburse the United States and/or Reclamation for all injury or damage to property, facilities or 70 works of the United States and/or Reclamation arising out of the utilization of the rights granted 71 pursuant to this License which is caused by the Licensee, its officers, agents, or employees, and 72 the Licensee shall promptly pay any bills rendered therefore by Reclamation, 73 74 4. TERM: 75 76 (a) This License, unless terminated sooner as provided by Article 8 hereof, shall 77 terminate twenty-five (25) years from the date hereof. This License may, upon agreement of the 78 parties, be extended for an additional twenty-five (25) year teen. Any request for extension shall 79 be filed by the Licensee, in writing, with the Area Manager. Any request for extension must be 80 filed riot less than one hundred and eighty (180) days prior to termination of this License. Any 81 subsequent requests for continued use of the Premises will require that a new application be filed 82 not less than 180 days prior to the expiration of the License or any extension thereof. 83 84 (b) Authorization for Licensee to enter and utilize the Borrow Pit Use Area and 85 Temporary Construction Use Area shall terminate two (2) years from the date hereof, unless this 86 License is terminated sooner as provided by Article 8 hereof. 87 88 5. CONSIDERATION: In accordance with 43 C.F.R. § 429, consideration for this License 89 shall be payment to Reclamation by the Licensee of the following: 90 91 (a) The sum of Two Hundred Dollars ($200), as the initial deposit fee required under 92 43 C.F.R. § 429.6(b), for submission and preliminary application review, the receipt of which is 93 hereby acknowledged; and 94 95 (b) All additional administrative costs in excess of the initial deposit for 96 administrative costs incurred by Reclamation in processing this License, which shall be due and 97 payable to Reclamation within 30 days after receipt of a bill rendered therefore. 98 99 6. WEPTfONS nND RtiSERVATlONS: 100 101 (a) The United States and/or Reclamation and the District reserve the right of its/their 102 officers, agents and employees to at all times have unrestricted access and ingress to, passage 103 over and egress from all of the Premises to make investigations of all kinds, dig test pits and drill 104 test holes, to survey for and construct reclamation and irrigation works and other structures 105 incident to Reclamation project needs and purposes. 106 107 (b) The rights granted. heremider shall not be exclusive in character and ilia 108 United States and/or Reclamation reserves to itself, its successors and assigns, the tight against 109 the Licensee to use any or all of the Premises, which is or /nay be crossed, or upon which Contract No. 06-07-34-LI502 4 110 irrigation and drainage facilities and works of Reclamation have been constructed, and to III construct, reconstruct, operate and maintain therein and thereon dams, dikes, canals, waste ways, 112 laterals, ditches, telephone and telegraph lines, electric transmission lines, roadways and 113 appurtenant irrigation and drainage structures which may be needed or useful in connection with 114 or as a part of canals, laterals and other irrigation and drainage facilities without any payment by 115 Reclamation, its successors or assigns for the exercise of such right. The Licensee agrees that if 116 the construction, reconstruction, installation, operation or maintenance of any or all of such 117 works of the United States and/or Reclamation, on or across the Premises at the above -described 118 location of the Licensee's Facilities, should be made more expensive by reason of the existence 119 of the Licensee's Facilities, such additional expense may be estimated by Reclamation whose 120 estimate shall be final and binding upon the parties hereto, and within thirty (30) days after 121 demand is made upon the Licensee for payment of any such sums, the Licensee will make 122 payment thereof to the United States and/or Reclamation or its successors or assigns constructing 123 such works across, over, under or upon the Premises. 124 125 (c) Reclamation reserves the right to inspect the Facilities of the Licensee or its 126 assigns under the terms of this License both during the progress of construction and upon 1,27 completion thereof. 128 129 (d) Jurisdiction of and supervision by Reclamation over the Premises is not 130 surrendered or subordinated by issuance of this License and the United States and/or 131 Reclamation reserves the right to issue additional licenses or other agreements for compatible 132 uses of the Premises. 133 134 7. INDEMNITY: 135 136 (a) The Licensee hereby agrees to hold harmless and indemnify the United States 137 and/or Reclamation, itsJtheir employees, agents, successors or assigns from and against any 138 claims, demands, costs, losses, causes of action, damages or liability of whatsoever kind or 139 nature arising out of or resulting from acts of negligence of the Licensee, its officers, agents or 140 employees in the utilization by the Licensee of the rights granted to it pursuant to this License. 141 Additionally, except for acts of negligence, the Licensee releases the United States and/or 142 Reclamation, its/their officers, employees, successors and assigns from any and all liability for 143 damage arising from injury to persons or damage to structures, equipment, improvements or 144 works of the Licensee resulting from the construction, operation or maintenance of any of the 145 works of the United States and/or Reclamation. Provided, bowev_er, that nothing contained in 146 this clause shall be deemed to modify or limit any liability which may be imposed by the Federal 147 Tort Claims Act, 28 U.S.C. a 2617, et se.. (1970). 148 149 8. TERMINATION: This License shall terminate and all rights of the Licensee hereunder 150 shall cease upon the following: 151 152 (a) At the expiration of the term as provided by Article 4; or Contract No. 06-07-34-L1502 153 154 (b) At any time by Licensee upon 60 days written notice to Reclamation; or 155 156 (c) At any time by Reclamation, if Reclamation determines that the Premises or any 157 portion thereof is needed for project purposes of Reclamation and/or the District, upon 120 days 158 written notice to the Licensee; or 159 160 (d) After failure of the Licensee to observe any of the conditions of this License, and 161 on the tenth day following service of written notice on the Licensee of termination because of 162 failure to observe such conditions; or 163 164 (e) Upon a determination by Reclamation that any activity by the Licensee in or upon 165 the Premises is or was illegal. 166 167 9. MISCELLANEUUS CUNDITIUNS: In the use of the Premises, the Licensee shall 168 faithfully observe each of the following conditions: 169 170 (a) The Licensee, at its sole expense, shall construct, own, use and maintain its 171 Facilities in conformity with all applicable regulations of Federal, State and local regulatory 172 agencies, including but not limited to, those relating to pollution and environmental control. 173 174 (b) All construction, use and maintenance activities undertaken pursuant to this 175 License shall be in conformity with the specifications approved in advance by the Area Manager 176 and the District and shall be conducted by the Licensee at all times in a manner satisfactory to the 177 Area Manager and the District. 178 179 (c) The Licensee shall at all times keep the Premises, including construction areas 180 used by the Licensee, free from accumulations of waste materials or rubbish. 181 182 (d) During construction and use of the Premises, the Licensee shall carry out proper 183 and efficient measures wherever and as often as, necessary to reduce nuisance by dust, and to 184 prevent dust which has originated from its operations from damaging any other properties or 185 causing a nuisance to persons. 186 187 (e) The Licensee shall reimburse the united States and/or Reclamation for any and all 188 costs and expenses incurred in the defense ofany action which challenges the Licensee's use of 189 the Premises. 190 191 (f) The Licensee shall not use the Premises or permit the use thereof for any purpose 192 except as set forth herein. 193 Contract No. 06-07-34-1,1502 M 194 (g) The rights granted by this License are subject to any and all rights of the 195 United States and/or Reclamation, and to existing rights in favor of the public or third parties. 196 The Licensee agrees that it is its sole responsibility to make whatever arrangements as are 197 necessary to obtain such rights as may be required of the Licensee from any other party or parties 198 holding any other interests. 199 . 200 (h) upon termination of this License for any reason, the Licensee may be required, at 201 the option of the United States and/or Reclamation, to remove any or all of its Facilities placed 202 upon the Premises and shall restore the Premises to a condition satisfactory to the Area Manager, 203 If the Licensee fails to remove its Facilities within sixty (60) days after termination of this License, 204 the Area Manager may, on behalf of the United States and/or Reclamation, deny and prohibit any 205 or all public access to the Licensee's Facilities or remove the Licensee's Facilities at the expense of 206 the Licensee, and Licensee shall promptly pay the United States and/or Reclamation for removal 207 and restoration upon receipt of billing. 208 209 (i) The Licensee shall provide a construction schedule and 72-hours notice to 210 Reclamation prior to start of construction. Said 72-hours notice shall be provided to 211 Reclamation's Technical Services Group Manager at telephone No. 928-343-8100 so that a 212 Reclamation construction inspector can be on -site during construction activities. 213 214 (j) The Licensee is aware that Reclamation has given a prior authorization to the 215 Coachella Valley Recreation and Park District ("CVRPD") for the Coral Mountain Trail within 216 portions of the Premises. The Licensee shall deliver to Reclamation written evidence of 217 CVRPD's approval of the Jefferson Street Extension prior to commencing ground disturbing 218 activities within the Premises. 219 220 10. OFFICIALS NOT TO BENEFIT: No Member of or Delegate to Congress or Resident 221 Commissioner, and no officer, agent or employee of the Department of the Interior, shall be 222 admitted to any share or part of this License or to any benefit that may arise herefrom, but this 223 restriction shall not be construed to extend to this License ifmade with a corporation or 224 contractor for its general benefit. 225 226 11. COVENANT AGAINST CONTINGENT FEES: The Licensee warrants that no person 227 or agency has been employed or retained to solicit or secure this License upon an agreement or 228 understanding for a commission, percentage, brokerage or contingent f cc, excepting bona fide 229 employees or bona fide established agencies maintained by the Licensee for the purpose of 230 securing business. For breach or violation of this warranty, the United States and/or Reclamation 231 shall have the right to annul this License without liability or in its discretion to require the 232 Licensee to pay, in addition to the right -of -use consideration, the full amount of such 233 commission, percentage, brokerage or contingent fee. 234 Contract No. 06-01-34-1-1502 _ p;g� p Ry pF CULTURAL RESOUR The Licensee shall immediately provide 236 an araT natiTficaiian to Reclamation of discovery of any and all antiquities or other objects of 237 archaeological, cultural, historic Orseicutit5c interest on Reclamation lands. The Licensee shall 238 follow up with a written report of their finding(s) to Reclamation witlun forty-eight (48) hours. 239 Objects under consideration include, but are not limited to, historic or prehistoric ruins, human 240 remains, funerary objects and artifacts discovered as a result of activities authorized under this 241 License. The Licensee shall immediately cease the activity in the area of the discovery, make a 242 reasonable effort to protect such discovery and wait for written approval from Reclamation 243 before resuming the activity. Protective and mitigative measures specified by Reclamation shall 244 be the responsibility of the Licensee. 245 246 13. HAZARDOUS MATERIALS: 247 248 (a) The Licensee may not allow contamination or pollution of lands, waters or project 249 works of the United States and/or Reclamation for which the Licensee has the responsibility for 250 care, operation and maintenance by its employees or agents and shall take reasonable precautions 251 to prevent such contamination or pollution by third parties. 252 253 (b) The Licensee shall comply with all applicable Federal, State and local law and 254 regulations and Reclamation policies and instructions, existing or hereafter enacted or 255 promulgated, concerning any hazardous material that will be used, produced, transported, stored 256 or disposed of on or in lands, waters or project works of the United States and/or Reclamation. 257 258 (c) "Hazardous material" means any substance, pollutant or contaminant listed as 259 hazardous under the Comprehensive Environmental Response, Compensation, and Liability Act 260 of 1980, as amended, 42 U.S.C. § 9601, et seq., and the regulations promulgated pursuant to that 261 Act. In addition, it shall include thermal pollution, refuse, garbage, sewage effluent, industrial 262 waste, petroleum products, mine tailings, mineral salts, misused pesticides, pesticide containers 263 or any other pollutants. 204 hich 265 (d) Upon discovery of any event wmay or does result in contamination or 266 pollution of lands, waters or project works of the United States and/or Reclamation, the Licensee 267 shall initiate emergency measures to protect health and safety and the environnnern if necessary 268 and shall provide notice of such discovery with full details of the actions to Reclamation's 269 Environmental Planning and Compliance Group Manager at telephone No. 928-343-8100. 270 Additionally, all spills regardless of size shall be reported to Reclamation's Environmental 271 Planning and Compliance Group Manager. Such notice shall be within a reasonable time period 272 but not to exceed 24 hours from the time of discovery if it is an emergency and the first working 273 day if it is a non -emergency. 274 Contract No. 06-07-34-1.1502 275 (e) Violation of any of the provisions of this Article, upon which the Licensee does 276 not take immediate corrective action, may, as determined by Reclamation, constitute grounds for 277 termination of this License and shall make the Licensee liable for the cost of full and complete 278 remediation and/or restoration of any resources or facilities of the United States and/or 279 Reclamation that are adversely affected as a result of the violation. 280 281 (t) The Licensee agrees to include the provisions contained in paragraphs (a) through 282 (e) of this Article in any subcontract or third party contract it may enter into pursuant to this 283 License. 284 285 (g) Reclamation agrees to provide information necessary for the Licensee using 286 reasonable diligence to comply with the provisions of this Article. 287 288 14. CLEAN AIR AND WATER: The Licensee agrees as follows: 289 290 (a) To comply with all Federal, State, and local requirements of the Clean Air Act 291 (CAA) and the Clean Water Act (CWA); and 292 293 (b) To obtain written permission from Reclamation prior to conducting any activities 294 that require permits, plans, or certificates under the C AA or the CWA; and 295 296 (c) To provide Reclamation with a copy of any correspondence between the Licensee 297 and any regulatory agency concerning CAA or CWA compliance, including, but not limited to, 298 copies of permit applications, permits, reports, notices of violation or enforcement actions; and 299 300 (d) To take immediate and effective action to correct any violation related to the CAA 301 or the CWA. Provide Reclamation with a narrative description of the violation, the actions taken 302 by the Licensee, the date the violation began, the date that the Licensee became aware of the 303 violation and the date that the Licensee returned to compliance; and 304 305 (e) To take action to comply with any changes to the CAA and the CWA within the 306 schedule required by the regulation, rule or guidance. 307 308 15, NOTICE : 309 310 (a) Any notices required by this Article shall be served by certified mail addressed to 311 the respective addresses given herein and the mailing of any such notice properly enclosed, 312 addressed, stamped and certified, shall be considered service. 313 314 (b) Any notice, demand or request required or authorized by this l,icensc to be given 315 or made to or upon the United States axllor Reclamation shall be deemed properly given or 316 made if delivered or mailed postage -prepaid, to the Area Manager, Yuma Area Office, Bureau of 317 Reclamation, 7301 Caile Agua Salada, Yuma, Arizona 85364. Contract No. 06-07-34-LI 502 318 (c) Any notice, demand or request required or authorized by this License to be given 319 or made to or upon the Licensee shall be deemed properly given or made if delivered or mailed 320 postage -prepaid, to the City of La Quints, P.O. Box 1504, La Quinta, California 92247-1504. 321 322 (d) The designation of the person to or upon whom any notice, demand or request is 323 to be given or made, or the address of such person may be changed at any time by notice given in 324 the same manner as provided in this Article for other notices. 325 326 16, hLO WARRANTY: Reclamation makes no warranty, express or implied, as to the extent 327 or validity of the grant contained herein. Contract No. 06-07-34-L1502 10 IN WITNESS WHEREOF, the parties hereto have signed their names to this CONTRACT AND LICENSE which shall become effective the day and year first above written. THE UNITED STATES OF AMERICA By: Area Manager Yuma Area Office Lower Colorado Region Bureau of Reclamation United States Department of the Interior Date: CITY OF LA QUfNTA Title: Date: CONCURRENCE: COACHELLA VALLEY WATER DISTRICT By: Title: Date: Contract No. 06-07-34-1-1502 ATTACHMENT 2 ax QS:'i. .a>elhfi United States Department of the Interior BURFAU OF RECLAMATION TAKE PRIDE' a e� Yulna Area Office INAM4ERICA 2301 Calle ASua Salada , wxr �FSF rt;, Yume_ Arizona 85364 YAO-7120 AUG 0 8 2007 LND-6.00 Mr. Tim Jonasson City Engineer City of La Quinta P.O. Box 1504 La Quinta, CA 92247-1504 Subject: City of La Quinta — Contract and License to Extend Jefferson Street Across Fedcral Lands — Contract and License No. 06-07-34-L1502 (License) — All - American Canal Project, Coachella Canal Division, California Dear Mr. Jonasson: Enclosed are an original and two duplicate originals of the subject License. The License allows construction of a portion of a roadway across Federal lands that are administered by the Bureau of Reclamation (Reclamation). The proposed roadway is to be located within portions of sees. 28 and 29, T. 6 S., R, 7 E., San Bernardino Meridian, California. If the License is satisfactory, please sign all copies and return them to this office, Please include official documentation, such as a resolution approved by the City Council, which clearly shows that the signatory is authorized to aet-on behalf of the City of La Quinta. Once the Licenses are signed by the City of La Quinta and Coachella Valley Water District, Reclamationwillprepare a final reconciliation of your reimbursable account for administrative costs, Once this account is settled, a fully executed duplicate original of the License will be provided for your files. Please reference License No. 06-07-34-LI.502 in all communications regarding this matter. If you have questions, please contact Mr. Roy Romines, Realty Specialist, at 928-343-8331. Sin rely,/ Ca Hoeft, Dir ct or Resource Management Office Enclosure in Triplicate cc: Mr. Steven B. Robbins General Manager— Chief Engineer Coachella Valley Water District P.O. Box 1058 Coachella, CA 92236 Wo encls) Contract No.06-07-34•L1502 UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION LOWER COLORADO REGION YUMA AREA OFFICE YUMA, ARIZONA BOULDER CANYON PROJECT ALL-AMERICAN CANAL SYSTEM, COACHELLA ]XVTSION, CALIFORNIA CONTRACT AND LICENSE I THIS CONTRACT AND LICENSE (License), is made this _ day of —> 2 20_, pursuant to provisions of the Reclamation Act of June 17. 1902 (32 Stat. 388); the 3 Reclamation Project Act of August 4, 1939 (53 Stat. 1187), as amended August 19, 1950 (64 4 Stat. 463); and acts amendatory thereof or supplementary thereto; and the provisions of 43 C.F.R. 5 § 429, between the United States of America, acting through the Bureau of Reclamation, 6 hereinafter referred to as "Reclamation,,, represented by the officer executing this License, 7 hereinafter referred, to as the `"Area Manager," and the City of La Quinta, hereinafter referred to $ as the "Licensee," with the concurrence of the Coachella Valley Water District, hereinafter 9 referred to as the "District.." 10 II WIhNESSET'H: 12 13 WHEREAS, the Licensee desires the authorization of Reclamation and aright -or -use to 14 construct, own and maintain a portion of a roadway within, on, over and?or across certain lands 15 which were withdrawn for Bureau of Reclamation project purposes and certain lands that were 16 acquired by authorization of the Boulder Canyon Project Act (45 Star, 1057) dated December 21, 17 1928; and the Rehabilitation and Betterment Act of October 7, 1949 (63 Stat. 74), as amended; 18 and 19 20 WHEREAS, THE Licensee also desires the authorization of Reclamation and a 21 temporary right -of -use to utilize additional Reclamation administered withdrawn and fee lands 22 located adjacent to the roadway for a Borrow Pit Use Area and Temporary Construction Use 23 Area; and 24 25 WHEREAS, the granting of such authorization and right -of -use by Reclamation and the 26 exercise of such right -of -use by the Licensee under the terms and conditions herein provided will 27 be compatible with the purposes for which the lands are administered on behalf of the 28 United States by Reclamation; and 29 30 WHEREAS, the purpose of this License is to grant the Licensee authorization aril a 31 right -of -use to construct, own and maintain that portion of the Jefferson Street Extension that 32 crosses Reclamation lands further defined herein below; and 33 34 WHEREAS, the providers of various public utilities intend to install and/or construct 35 utilities and/or other improvements throughout the Jefferson Street Extension. Any such 36 provider intending to install or construct any utilities and/or other improvements, not specifically 37 authorized by this License, across Reclamation lands shall make separate application to 38 Reclamation for a Contract and License authorizing an individual right -of -use, under terms and 39 conditions -set forth therein, prior to any construction or installation. 40 41 NOW, THEREFORE, subject to the, conditions hereinafter set forth, Reclamation does 42 hereby grant to the Licensee authorization and a right -of -use to construct, own and maintain that 43 segment of theJeffersorl Street Extension, hereinafter referred to as "Facilities" within, on, over 44 and/or across Reclamation lands defined herein below. The,parties hereto agree as follows: 45 46 1. DESCRIPTION OF RECLAMATION LANDS: 47 48 Portions of the N'/zNW/4, section 29, and the W'/2NlW'14 of section 28, Township 6 49 South, Range 7 East, San Bernardino Meridian, County of Riverside, State of 50 California, said area contains approximately 26,28 acres consisting of 14.0 acres 51 of long term use area and 12.28 acres of temporary use area, more or less_ 52 53 The above described area, hereinafter referred to as'"the Premises" is further described by metes 54 and bounds on Exhibit A and is also depicted on Exhibit E and 6=2. Said Exhibits A, E, and B-2 55 are attached hereto and by this reference made a part hereof. 56 57 2. SU ESSORS AND ASSIGNA131LITY: This License is personal, revocable and 58 nontransferrable and shall not be construed as granting to the Licensee any right, title or interest in 59 the Premises or any other property, facilities or works of the United States and/or Reclamation. 60 This Li6ensc shall be binding upon and inure to the benefit of the successors and assigns of the 61 parties hereto; provided, however, that no assignment or transfer of any of the rights of the 62 Licensee hereunder shall be made without the prior written consent of Reclamation. 63 64 3. OWNERSHIP Ol: FACILITIES: The licensee shall at all times and at its sole expense, 65 without any expense and/or liability whatsoever to the hJnited States an(Vor Reclamation, 66 construct, own, maintain and make necessary repairs to or replacements of its Facilities in a Contract No. 06-07-34-1-1502 67 mamrer so as not to interfere with the proper use and operation of or cause injury or damage to 68 any property, facilities or works of the United States and/or Reclamation. The Licensee shall 69 reimburse the United States and/or Reclamation for all injury or damage to property, facilities or 70 works of the United States and/or Reclamation arising out of the utilization of the rights granted 71 pursuant to this License which is caused by the Licensee, its officers, agents, or employees, and 72 the Licensee shall promptly pay any bills rendered therefore by Reclamation. 73 74 4. TERM: 75 76 (a) This License, unless terminated sooner as provided by Article 8 hereof, shall 77 terminate twenty-five (25)years from the date hereof, This License may, upon agreement of the 78 parties, be extended for an additional twenty-five (25) year term. Any request for extension shall 79 be filed by the Licensee, in writing, with the Area Manager. Any request for extension must be 80, filed not lefts than one hundred and eighty (180) days prior to termination of this License. Any 81 subsequent requests for continued use of the Premises will require that a new application be filed 82 not less than 180 days prior to the expiration of the License or any extension thereof. 83 84 (b) Authorization for Licensee to enter and utilize the Borrow Pit Use Area and 85 Temporary Construction Use Area shall terminate two (2) years from the date hereof, unless this 86 License is terminated sooner as provided by Article 8 hereof. 87 88 5. CONSIDERATION: In accordance with 43 C.F.R. § 429, consideration for this License 89 shall be payment to Reclamation by the Licensee of the following: 90 91 (a) The sutra of Two Hundred Dollars ($200), as the initial deposit fee required under 92 43 C.F.R. § 429.6(b}, for submission attd preliminary application review, the receipt of which is 93 hereby acknowledged, and 94 95 (b) All additional administrative costs in excess -of thc initial deposit for 96, administrative: posts incurred by Reclamation in,processing this License, which shall be due and 97, payable.to Reclamation within 30 days after receipt of a bill rendered therefore. 98 99 6. EXCEPTIONS AND RESERVATIONS: 100 --„ 101 (a) The United States and/or Reclamation and the Distract reserve the right of its/their 102 officers, agents and employees to at all times have unrestricted access and ingress to, passage 103 over and egress from all of the Premises to make investigations of all kinds, dig test pits and drill 104 test holes, to survey for and construct reclamation and irrigation works and other structures 105 incident to Reclamation project needs and purposes. 106 107 (b) The rights granted hereunder shall not be exclusive in character and the 108 United States •and/or Reclamation reserves to itself, its successors and assigns, the right against 109 the Licensee to use any or all of the Premises, which is or may be crossed, or upon which Contract No. 06-07-34-LI502 110 irrigation and drainage facilities and works of Reclamation have been constructed, and to III construct, reconstruct, operate and maintain therein and thereon dams, dikes, canals, waste ways, 112 laterals, ditches, telephone and telegraph lines, electric transmission lines, roadways and 113 appurtenant irrigation and drainage structures which may be needed or useful in connection with 114 or as a part of canals, laterals and other irrigation and drainage facilities without any payment by 115 Reclamation,,its successors or assigns for the exercise of such right, The Licensee agrees that if 116 the construction, reconstruction, installation, operation or maintenance of any or all of such 117 works of the United States and/or Reclamation,on or across the Premises at the above -described 118 location of the Licensee's Facilities, should be made more expensive by reason of the existence 119 of the Licensee's Facilities, such additional expense may be estimated by Reclamation whose 120 estimate shall be final and binding upon the parties hereto, and within thirty (30) days after 121 demand is made upon the Licensee for payment of any such sums, the Licensee will make 122 payment thereof to the United States and/or Reclamation or its successors or assigns constructing 123 such works across, over, under or upon the Premises. 124 125 (c) Reclamation reserves the right to inspect the Facilities of the Licensee or its 126 assigns under the terms of this License both during the progress of construction and upon 127 completion thereof. 128 129 (d) Jurisdiction of and supervision by Reclamation over the Premises is not 130 surrendered or subordinated by issuance of this License and the United States and/or 131 Reclamation reserves the right to issue additional licenses or other agreements for compatible 132 uses of the Premises. 133 134 7. INDEMNITY: 135 136 (a) The Licensee hereby agrees to hold harmless and indemnify the United States I37 and/or Reclamation, its/their employees, agents, successors or assigns from and against any 138 claims, demands, costs, losses, causes of action, damages or liability of whatsoever kind or 139 nature arising out of or resulting from.acts of negligence of the Licensee, its officers, agents or 140 employees in the utilization by the Licensee of the rights granted to it pursuant to this License. 141 Additionally, except for acts of negligence, the Licensee releases the United States and/or 142 Reclamation, its/their officers, employees, successors and assigns from any and all liability for 143 damage arising from injury to persons or damage to structures, equipment, improvements or 144 works of the Licensee resulting from the construction, operation or maintenance of any of the 145 works ofthe United States and/or Reclamation. Pravided, how=eyger, that nothing contained in 146 this clause shall be deemed to modify or limit any liability which may be imposed by the Federal 147 'fort Claims Act, 28 U.S.C. § 2617, et seq. (1970), 149 149 8. TERMINATI(}N: This License shall terminate and all rights of the Licensee hereunder 150 shall cease upon the following: 151 152 (a) At the expiration of the temp as provided by Article 4; or Contract No, 06-07-34-1,1502 153 154 (b) At any time by Licensee upon 60 days written notice to Reclamation; or 155 156 (c) At any time by Reclamation. if Reclamation determines that the Premises or any 157 portion thereof is needed for project purposes of Reclamation and/or the District, upon 120 days 158 written notice to the Licensee; or 159 160 (d) After failure of the Licensee to observe any of the conditions of this License, and 161 on the tenth day following service of written notice on the Licensee of termination because of 162 failure to observe such conditions; or 163 164 (c) Upon a determination by Reclamation that any activity by the Licensee in or upon 165 the Premise is or was illegal. 166 167 MISCELLANEOUS CONDITIONS: In the use of the Premises, the Licensee shall 168 faithfully observe each of the following conditions: 169 170 (a) The Licensee, at its sole expense, shall construct, own, use and maintain its 171 Facilities in conformity with all applicable regulations of Federal., State and local regulatory 172 agencies, including but not limited to, those relating to pollution and environmental control. 173 1,74 (b) All construction, use and maintenance activities undertaken pursuant to this 175 License shall be in conformity with the specifications approved in advance by the Area Manager 176 and the District and shall be conducted by the Licensee at all times in a manner satisfactory to the 1,77 Area Manager and the District. 178 179 (c) The Licensee shall at all tithes keep.the Premises, including construction areas M used by the Licensee„ free from accumulations of waste materials or rubbish. 181 182 (d) During construction and use of the Premises, the Licensee shall carry out proper 183 and efficient measures wherever and as often as necessary to reduce nuisance by dust, and to 184 prevent dust which has originated from its operations from damaging .any other properties or 185 causing a nuisance to persons. 186 187 (c) The Licensee shall reimburse the United States and/or Reclamation for any and all 188 costs and expenses incurred in the defense of any action which challenges tite Licensee's use of 189 the Premises. 190 191 (f) The Licensee shall not use the Premises or permit the use thereof for any purpose 192 except as set forth herein. 193 Contract No. 06-07-34-1-1502 6 194 (g) The rights granted by this License are subject to any and all rights of the 195 United States and/or Reclamation, and to existing rights in favor of the public or third parties. 196 The Licensee agrees that it is its sole responsibility to make whatever arrangements as are 197 necessary to obtain such rights as may be required of the Licensee from any other party or parties 198 holding any other interests. 199 200 (h) Upon termination of this License for any reason, the Licensee may be required, at 201 the option of the United States and/or Reclamation, to remove any or all of its Facilities placed 202 upon the Premises and shall restore the Premises to a condition satisfactory to the Area Manager. 203 If the Licensee fails to remove its Facilities within sixty (60) days alter termination of this License, 204 the Area Manager may, on behalf of the United States and/or Reclamation, deny and prohibit any 205 or all public access to the Licensee's Facilities or remove'the Licensee's Facilities at the expense of 206 the Licensee, and Licensee shall promptly pay the United States and/or Reclamation for removal 207 and restoration upon receipt of billing, 208 209 (i) The Licensee shall provide a construction schedule and 72-hours notice to 210 Reclamation prior to start of construction. Said 72-boars notice shall be provided to 211 Reclamation's Technical Services Group Manager at telephone No. 928-343-8100 so that a 212 Reclamation construction inspector can be on -site during construction activities. 213 214 (j) The Licensee is aware that Reclamation has given a prior authorization to the 215 Coachella Valley Recreation and Park District ("CVRPD") for the Coral Mountain Trail within 216 portions of the Premises. The Licensee shall deliver to Reclamation written evidence of 217 CVRPD's approval of the Jefferson Street Extension prior to commencing ground disturbing 218 activities within the Premises. 219 220 10. OFFICW S NOT TO BENEFIT: No Member of or Delegate to Congress or Resident 221 Commissioner, and no officer, agent or employee of the Department of the Interior, shall be 222 admitted to any share or part of this License or to any benefit that may arise "herefrem, but this 223 restriction shall not be construed to extend to this License if made with a corporation or 224 contractor for its general benefit, 225 226 11. COVENANT AGAINST CONTINGENT FEES: The Licensee warrants that.no person 227 or agency has been employed or retained to solicit or secure this License upon an agreement or 228 understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide 229 employees or bona fide established agencies maintained by the Licensee for the purpose of 230 securing business. For breach or violation of this warranty, the United States and/or Reclamation 231 shall have the right to annul this License without liability or in its discretion to require the 232 Licensee to pay, in addition to the right -of -use consideration, the full amount of such 233 commission, percentage, brokerage or contingent fee, 234 Contract No. 06-07-34-1,1502 , tiroCOyERX OF CULTt.TRAL RESOURCES_: The Licensee shall immediately provide 236 an oral notification to Reclamation of the discovery of any and all antiquities or other objects of 2V archaeological, cultural, historic or scientific interest on Reclamation lands. The Licensee shall 238 follow up with a written report of their finding(s) to Reclamation within forty-eight (48) hours. 239 Objects under consideration include, but are not limited to, historic or prehistoric ruins, human 240 remains, funerary objects and artifacts discovered as a result of activities autharizod under this 241 License, The Licensee shall immediately cease the activity in the area of the discovery, make a 242 reasonable effort to protect such discovery and wait for written approval from Reclamation 243 before resuming the activity. Protective and mitigative measures specified by Reclamation shall 244 be the responsibility of the Licensee. 245 246 13. HAZARDOUS MATERIALS: 247 248 (a) The Licensee may not allow contamination or pollution of lands, waters or project 249 works of the United States and/or Reclamation for which the Licensee has the responsibility for 250 care, operation and maintenance by its employees or agents and shall take reasonable precautions 251 to prevent such contamination or pollution by third parties. 252 25:3 (b) The Licensee shall comply with all applicable Federal, State and local law and 254 regulations and Reclamation policies and instructions, existing or hereafter enacted or 255 promulgated, concerning any hazardous material that will be used, produced, transported, stored 256 or disposed of on or in lands, waters or project works of the United States and/or Reclamation. 257 258 (c) "Hazardous material" means any substance, pollutant or contaminant listed as 259 hazardous under the Comprehensive Environmental Response, Compensation, and Liability Act 260 of 1980, as amended; 42 U.S.C. ¢ 9601, et sseg., and the regulations promulgated pursuant to that 261 Act. In addition, itsltaJ1 include thermal pollution, refuse, garbage, sewage effluent, industrial_ 262 waste, petroleum products, mine'tailings, mineral salts, misused pesticides, pesticide containers 263 or any other. pollutants. 264 265 (d) Upon discovery of any event which may or does result in contamination or 266 pollution of lands; waters or project works of the United States and/or Reclamation, the Licensee 267 shall initiate emergency measures to protect health and safety and the environment if necessary 268 and shall provide notice of such discovery with full details of the actions to Reclamation's 269 Rriv"tronmental Planning and Compliance Group Manager at telephone No. 928-343-8100. 270 Additionally, all spills regardless of size shall be reported to Reclamation's Environmental 271 Planning and Compliance Group Manager. Such notice shall be within a reasonable time period 272 but not to-exceod 24 hours from the time of discovery if it is an emergency and the first working 273 day if it is a non -emergency. 274 Contract No. 06-07-344,1502 275 (e) Violation of any of the provisions of this Article, upon which the Licensee does 276 not take immediate corrective action, may, as determined by Reclamation, constitute grounds for 277 termination of this License and shall make the Licensee liable for the cost of full and complete 278 remediation and/or restoration of any resources or facilities of the United States andtor 279 Reclamation that are adversely affected as a result of the violation. 280 281 (f) The Licensee agrees to include the provisions contained in paragraphs (a) through 282 (e) of this Article in any subcontract or third party contract it may enter into pursuant to this 283 License. 284 285 (g) Reclamation agrees to provide information necessary for the Licensee using 286 reasonable diligence to comply with the provisions of this Article. 287 288 14. CLEAN AIR AND WATER: The Licensee agrees as follows: 289 290 (a) To comply with all Federal, State, and local requirements of the Clean Air Act 291 (CAA) and the Clean Water Act, (CWA); and 2k 293 (b) To obtain written permission from Reclamation prior to conducting any activities 294 than require permits, plans, or certificates under the CAA or the CWA; and 295 296 (c) To provide Reclamation with a copy of any correspondence between the Licensee 1,97 and any regulatory agency concerning CAA or CWA compliance, including, but not limited to, 29$ copies of permit applications, permits, reports, notices of violation or enforcement actions; and 299 300 (d) To take immediate and effective action to correct any violation related to the CAA 301 or the CWA. Provide Reclamation with a narrative description of the violation„ the actions taken 302 by the Licensee, the date the violation began, the date that the Licensee became aware of the 303 violation and:the slate that the Licensee returned to compliance; and 304 305 (e) To take action to comply with any changes to the CAA and the CWA within the 306 schedule required by the regulation, rule or guidance. 307 308 M NOTICES: 309 310 (a) Any notices required by this Article shall be served by certified mail addressed to 311 the respective addresses given herein and the mailing of any such notice properly enclosed, 312 addressed, stamped and certified, shall be considered service. 313 314 (b) Any notice, demand or request required or authorised by this License to he given 315 or made to or upon the United States and/or Reclamation shall be deemed properly given or 316 made if delivered or mailed postage -prepaid, to the Area Manager, Yuma Area Office, Bureau of 317 Reclamation, 7301 Calle Agua Salada, Yuma, Arizona 85364. Contract No. 06-07-34-LI 502 318 (e) Any notice, demand or request required or authorized by this License to be given 314 or made to or upon the Licensee shall be deemed properly given or made if delivered or mailed 320 postage -prepaid, to the City of La Quinta. P.O. Box 1504, La Quinta, California 92247-1504. 321 322 (d) The designation of the person to or upon whom any notice, demand or request is 323 to be given or made, or the address of such person may be changed at any time by notice given in 324 the same manner as provided in this Article for other notices. 325 326 M N4 WARRANIT'Y:, Reclamation makes no warranty, express or implied, as to the extent 327 or validity of the grant contained herein. Contract No. 06-07-34-1,1502 10 IN WITNESS WHEREOF, the parties hereto have signed their names to this CONTRACT AND LICENSE which shall become effective the day and year first above written. THE UNITED STATES OF AMERICA By: Area Manager Yuma Area Office Lower Colorado Region Bureau of Reclamation United States Department of the Interior Date: CITY OF LA QUINTA 0 Title: Date: CONCURRENCE: COACHELLA VALLEY WATER DISTRICT By: Title: Date: Contract No. 06-07-34-1,1502 m m :7F X ak UJ ui WAS No-ow-Mfiw 3C8 S9 *i 3nN3A V HL 99 En 1N3VYHOViiV � | ` ' | � ■ °, ; • �) ! � ■ _ \ \| ' §| 1-91 a•°\ / NOS>1Obr NOSIGVH NMJ]-J.J3r NOlONIHSVM W Q W Q n LO W Q G a �J3.jj3r 171N31NHOdlld LLI C*4 MM 1;4 M LLI LLI > 31 'S9/,,/'1'SZ/ �S I 0, 7 77 / am top-� 'W�J 'S 91 7 R9 7�W-- i5 � 93 yy a e5 ■ A � � A Tuif 41wQ" COUNCIL/RDA MEETING DATE: September 4, 2007 ITEM TITLE: Consideration of Bob Hope Classic Player Spots RECOMMENDATION: As deemed appropriate by the City Council. FISCAL IMPLICATIONS: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Ball sponsor (player) spots cost $12,000 each. It is anticipated each selected player will pay the Hope Classic directly for the player spot and comply with all other player criteria. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: On January 16, 2007, the City Council approved an amended Use Agreement between Desert Classic Charities (the Hope Classic) and the City of La Quinta, designating the SilverRock tournament course (i.e., The Arnold Palmer Classic Course) a home course of the Bob Hope Chrysler Classic. The Use Agreement includes a provision that allows the City to reserve ten ball sponsor (player) spots at the established price for players in the tournament who meet standard eligibility requirements. While the contract specifies these spots must be reserved by October 1 of each year, the Hope Classic has agreed to extend this year's deadline date to October 15, 2007. If the City Council chooses to reserve these spots, staff will formulate a plan to establish criteria, advertise, and promote this opportunity. Staff will work with the Hope Classic to ensure the City's program complies with all criteria for the event. It is anticipated the opportunity would be advertised in local publications, via flyers placed at SilverRock and other La Quinta golf courses and golf communities, and on the City's website. Local property owners, residents, and business owners would be eligible to enter a drawing during a specified time period. The drawing would be held at SilverRock Resort, and staff would work with the City's marketing firm to publicize the event. Several extra names could be drawn as alternates, in case the selected players were deemed ineligible to participate in the tournament. The Bob Hope Classic will validate the selected players' eligibility, which includes a handicap no higher than 18 and any other requirements to play in the event. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Reserve ten ball sponsor (player) spots for the 2008 Bob Hope Chrysler Classic; or 2. Reserve a lesser number of ball sponsor (player) spots for the 2008 Bob Hope Chrysler Classic; or 3. Do not reserve ball sponsor (player) spots for the 2008 Bob Hope Chrysler Classic; or 4. Provide staff with alternative direction. Respectfully submitted, Edie Hylton, Community Services Director Approved for submission by: Thomas P. Genovese, City Manager K