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2005-05-03 CC Minutes & PH 1 - Washington-III, Ltd - Appeal Hearing City Council Minutes 15 May 3, 2005 Alex Lambrose Kimberly Nava Cassie Peters Ashley Rehbehn Jenna Richardson Jessica Rios John Schuknecht Matt Schumaier * * * * * * * * * * * Mayor Adolph presented a proclamation to Mark Miller, representing the Riverside County Department of Mental Health, in recognition of May being Mental Health Month. PUBLIC HEARINGS 1. CONTINUED PUBLIC HEARING TO CONSIDER AND TAKE ACTION ON AN APPEAL FilED BY WASHINGTON 111 l TD, REGARDING GRADING PERMIT CONDITION AND PROCESS OF FINAL MAP. Public Works Director Jonasson advised a Memorandum of Understanding (MOU) has been drafted and distributed to Council but the developer wishes to discuss the timeframe for installing the drainage connection. Staff feels 60 months is an appropriate amount of time to determine the best way to handle the construction. He indicated the developer has estimated the cost at $175,000 but design and prevailing wages will most likely increase that amount. Mayor Adolph stated he understands Champion Motors expects to move in 2006, and asked if the storm drain would be needed if a new development is required to retain its water on-site. Mr. Jonasson stated the new development would probably be required to retain the water on-site or to accommodate the runoff by installing the storm drainage connection. City Attorney Jensen advised the MOU anticipates the storm drain being installed by either the City or a third-party but the language can be modified to clarify that the drainage will not be needed if the water is retained onsite. She explained the purpose of the five-year period was to prevent the City having to incur the expense if a new development takes over the site. In response to Council Member Henderson, Ms. Jensen advised it is difficult to require a developer to reimburse the City for public improvements if the improvements are already completed, and it would probably be subject to legal challenge. The Mayor declared the PUBLIC HEARING OPEN at 7:21 p.m. City Council Minutes 16 May 3, 2005 Jack Tarr, 30-240 Rancho Viejo, San Juan Capistrano, of Washington 111 Ltd., commended Assistant City Engineer Speer for the manner in which he negotiated this matter. He indicated he would defer to the Council's judgment regarding the 60 months. He is also in agreement with modifying the MOU regarding a new development retaining their water onsite but suggested it include all related tributary water. There being no other requests to speak, the Mayor declared the PUBLIC HEARING CLOSED at 7:23 p.m. Council Member Henderson indicated she is somewhat challenged with the 60 months because a new development could come in at the 59th month, and it could take up to 6 % years to get through the engineering and approval time. Mr. Jonasson stated he expects a new development on the site earlier than that. He stated the plan was to include this as an AD project in the CI P next year. Council Member Henderson stated she would like the engineering for the project to be flshelJ ready" so the project can be done in conjunction with another project requiring Washington Street to be closed. She asked about the status of the Simon Drive traffic signal. Assistant City Engineer Speer stated the traffic signal should be installed before the end of the year but most of the work will be on the west side and there will be minimal impact to traffic. Council Member Henderson stated she would like to add the storm drain as , an AD project to the CI P this year. Council Member Perkins agreed. Council Member Sniff noted the language indicates flwithin" 60 months, so he doesn It see why the project can't be added next year. Council Member Osborne stated he supports the MOU as recommended by staff. Mayor Adolph concurred, and stated his only concern is tearing up the intersection again. ~._-_._.__._--- - City Council Minutes 17 May 3, 2005 MOTION - It was moved by Council Members Henderson/Sniff to approve a Memorandum of Understanding (MOU) between the City of La Ouinta and Washington 111 Ltd. as amended regarding onsite water retention being in lieu of storm drain connection. Motion carried unanimously. MINUTE ORDER NO. 2005-043. Council Member Henderson complimented staff and the developer for resolving this matter. 2. PUBLIC HEARING TO CONSIDER A RESOLUTION ADOPTING THE FISCAL YEAR 2005/2006 THROUGH 2009/2010 CAPITAL IMPROVEMENT PROGRAM (CIP) AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445(a). Public Works Director Jonasson presented the staff report. Consultant Nick Nickerson stated the school pedestrian crossings on Miles Avenue and Dune Palms Road are scheduled to be completed once CalTrans approves the plans. He explained CalTrans is providing 90% of the funding for the improvements. In response to Mayor Adolph, Mr. Jonasson stated the potholes on A venue 54 may need to be addressed as an emergency item through the City's street improvement projects. Staff is considering doing a thin overlay now and a white topping in 2006/2007. In response to Council Member Henderson, Mr. Jonasson confirmed the Avenue 158 Pavement Rehabilitation Improvements project is scheduled for FY 2006/2007 but is part of the Operational Budget for Street Maintenance. Mr. Nickerson indicated the Champion Motors storm drain project can be added as AD' Project No. 59 but noted the project numbers do not indicate priority. Council Member Perkins inquired about the status of the Eisenhower Bridge. He also reminded staff to include bike lanes and cigar-nose medians for left- turn pockets whenever possible. Mr. Jonasson stated the contract for the bridge has been awarded to Granite Construction but some unexpected utilities have been identified. that have caused a slight delay in the project. Council Member Osborne complimented the Consultant for doing an outstanding job on the report, and suggested staff consider applying the ATTACHMENT 1 -` 4 CV G�� 9ti5 OF Tom' COUNCIL/RDA MEETING DATE: April 19, 2005 ITEM TITLE: Public Hearing to Consider and Take Action on Appeal Filed by Washington 1 1 1, Ltd., Regarding Grading Permit Condition and Process of Final Map RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Conduct a public hearing to consider the appeal filed by Washington 1 1 1, Ltd., regarding Grading Permit conditions and the processing 'of Final Maps 32683-1, 32683-2, and 32863-3 in accordance with La Quinta. Municipal Code Section 2.04.130, and then take action as deemed appropriate by the City Council. FISCAL IMPLICATIONS: There are no fiscal impacts directly associated with the consideration or action on this appeal. However, if the appeal is granted, this could necessitate the construction of drainage improvements in the vicinity of the Washington Park project at the City's expense. If the appeal is denied, it is -possible that Washington 1 1 1, Ltd. could initiate litigation against the City, which would result in expenses to the City. In addition, .if the opening of any new business located within Washington Park project is delayed, this could result in a loss of tax revenue to the City. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: On March 24, 2005, Washington 1 1 1, Ltd. submitted an appeal pursuant to La Quinta Municipal Code Section 2.04.100. The items appealed include: (1) the imposition of a condition on a grading permit which requires the installation of facilities to accept tributary drainage flows from off -site; and (2) an objection to the processing of Final Maps. based upon the grading permit condition. 3 310 A brief overview of the history of the Washington Park project with respect to drainage requirements and conditions is necessary to understand the appeal. The current appeal centers primarily around drainage which flows off of Champion Chevrolet. The development of Champion Chevrolet (former, Simon Motors) was approved prior to the incorporation of the City. To staff's knowledge, there was no requirement for Champion Chevrolet to retain storm water on site. Currently, the drainage from Champion Chevrolet flows off site onto Simon Drive, out to Washington Street, and then flows south. Historically, storm water from the Champion site flowed south into previously undeveloped sand dunes, now mapped by the Washington Park development. In 2002, Champion storm water flowed to Simon Drive, then southerly at the east side of the edge of pavement of Washington Street, ultimately draining again to the Washington Park property. Curb and gutter on the east side ' of Washington Street was installed by Washington Park in the fall of 2004. Following this recent curb and gutter installation, Champion stormwater now flows on the east side of Washington Street, contained by the newly installed gutter, and proceeds south to the intersection of Washington Street and Avenue 47. In low flow storms, the water turns east at Avenue 47 and flows to Washington Park's retention basins ' 1 and 5. In larger storm events, the water in ever increasing quantities tops the crown of the street at Avenue 47 and continues south on Washington Street. _ On December 17, 2002, an Addendum to the Washington Park Specific Plan was adopted. This was amendment #4 to Specific Plan 1987-011. On page 20, Section W.B., the Drainage Plan is outlined, and it includes the following statement: "The existing drainage that currently enters the site will be intercepted and directed into the site drainage system." The relevant Conditions of Approval for the Specific Plan Amendment No. 4 are as follows: DRAINAGE 31. The applicant shall comply with the provisions of Section 13.24.120 (Drainage), LQMC, Engineering Bulletin No. 97.03. More specifically, stormwater falling on site during the 100-year storm shall be retained within the development, unless otherwise approved by the City Engineer. The tributary drainage area shall extend to the centerline of the adjacent public streets. The design storm shall be either the 3 hour, 6 hour or 24 hour event producing the greatest total run off. 311 4 36. The design of the development shall not cause any increase in flood boundaries, levels or frequencies in any area outside the development. 37. Storm drainage historically received from adjoining property shall be received and retained or passed through into the historic downstream drainage relief route. (Emphasis Added.) The Tentative Tract Map approved -at the same time (TTM 30903) included the following conditions: DRAINAGE 32. The applicant shall comply with the provisions of Section 13.24.120 (Drainage), LQMC, Engineering Bulletin No. 97.03. More specifically, stormwater falling on site during the 100-year storm shall be retained within the development, unless otherwise approved by the City Engineer. The tributary drainage area shall extend to. the centerline of the adjacent public streets. The design storm shall be either the 3 hour, 6 hour or 24 hour event producing the greatest total _ run off. 37. The design of the development shall not cause any increase in flood boundaries, levels or frequencies in any area outside the development. 38. The development shall be graded to permit storm flow in excess of retention capacity to flow out of the development through a designated overflow and into the historic drainage relief route. 39. Storm drainage historically received from adjoining property shall be received and retained or passed through into the historic downstream drainage relief route. (Emphasis added.) These same conditions are carried forward in Parcels 32683-1, 32683-21 and 32863-3. 312 5 The Hydrology Report for the project was not yet finalized as of the date the Council considered the above items in 2002. The Mitigated Negative Declaration for the project therefore included the following discussion: The proposed project will be responsible for the drainage of on and off site flows. A preliminary hydrology study has been prepared for the project site ["Preliminary Hydrology Study," prepared by Pardue, Cornwell & Associates, October, 2002.1 The preliminary hydrology study prepared for the proposed project is still under review by the City Engineer, and will be modified to conform to the City's standards for on -site retention. In order to assure that this is the case, the following mitigation measure shall be implemented: 1. The project proponent shall secure approval from the City Engineer of the hydrology study for the project site prior to the issuance of any grading permit. Pursuant to the Mitigation Monitoring Plan, the measure was to be implemented as follows: The City Engineer would need to issue a letter of approval for the hydrology study prior to grading. Unfortunately, the Hydrology Report that was subsequently revised and resubmitted by Washington 1 1 1's hydrologist did not account for the off -site tributary areas. To the contrary, the report erroneously described the site as follows: The proposed project will develop 50 acres of retail center surrounding the existing Lowes Home Improvement store. The site is currently undeveloped with portions of the site previously' mass graded. The remainder of the site consists of sand dunes with minor brush growth in some areas. There are no off -site drainage areas tributary to the site. Additionally, no outfall of drainage is proposed to leave the site. Rainfall runoff will be contained on -site in four (4) retention ponds. (Emphasis added.) Washington 1 1 1 does not wish to correct this oversight relative to the off -site tributary drainage contribution of Champion Chevrolet. 313 6 The City does not have a formal process for approval of hydrology reports. Instead, the method for final clearance is usually in the form of a letter from the plan check firm that conducts the review. In a letter dated February 13, 2003, addressed to Steve Speer, Berryman & Henigar stated: I have re -checked the Mass Grading Plans of Washington Park, Tract 30903. The Mass Grading Plan along with the Hydrology report is recommended for City approval, pending additional City comments. The City relies upon the developer's consultants to provide accurate, coherent plans and reports. Although plans and reports are typically reviewed by outside plan check consultants, it is not possible for the consultants to reconfirm all assumptions. In particular, off -site information, such as the Champion Chevrolet flows, are generally beyond the scope of outside plan check consultants as no data is typically supplied by the engineer of record which would allow this verification, and thus no verification can be performed for off -site conditions. The City has now determined that the 2002 hydrology report was incorrect, and it is the City's understanding that the engineers for Washington 1 1 1 do not disagree _ with this determination. Public Works Staff Design Request The Public Works Department seeks' additional storm water inlet structures for Washington Street to properly drain Washington Street. The present condition creates lane losses in storm events. More specifically, an effective lane loss occurred on northbound Washington (3 lanes reduced to 2 lanes) for a storm generating 0.5 to 0.75 inches of rainfall in 3 hours observed at the City in December 2004.' By extrapolation, larger 10- to 20-year storms generating 1.0 to 1.5 inches of rainfall could reduce Washington to 1 lane of effective traffic flow. The 100-year 3-hour storm is estimated to equal 2.2 inches of rainfall for frame of reference. The Public Works Department wishes to avoid lane losses in standard annual rainfall events. The additional inlet structures for Washington Street would, by default, collect Champion storm water. The Public Works Department recommends drainage to Washington Street by taking the storm water on -site to Washington Park retention basins 4 and 2 and subsequently passing through Champion Chevrolet historical flows. The Public Works Department believes this design would adhere to the governing Conditions of Approval, Specific Plan SP1987-01 1, Amendment No. 4. 314 7 It is the Public Works Department's conclusion that utilization of retention basins 4 and 2 with subsequent pass through of the Champion Chevrolet storm water flow should not reduce the developable land for Washington Park. The City and Washington Park's current engineer of record, The Keith Companies; also seeks modification to Washington Park hydrology designs relative to other problems now apparent with the original hydrology report for the project. For example, Pad 1, adjacent to Adams Street, can not be constructed with the hydrology assumptions previously utilized by Washington Park. The adjacent Retention Basin 6 must be reconfigured to provide for proper stormwater storage volumes. Similarly, inlet structures on Adams must be reconstructed to properly collect adjacent storm flows. Washington 111's Appeal Washington 111 objects to the Public Works design request for storm water inlet structures on Washington Street outlined above. Following meetings between representatives of Washington 111 and City staff, it was the understanding of City staff that a resolution regarding the matter had been reached. Meetings held with Washington 111 representatives in early 2005 resulted in an apparent agreement to the installation of 2 inlet structures on Washington Street. - Attachment 1 obtained from Washington 111 indicates this reflects that it was planning to incorporate these inlets into its design at one time. Washington 111 also indicated a Washington Street inlet on the Index Map for Phase 3 Precise Grading Plans approved by the City on 3/30/2005 (Attachment 2). Washington 111 then requested that the drainage plans include written disclaimers and agreements that the City Attorney did not feel were appropriate content for drainage plans. The language that Washington 111 sought to add is submitted herewith as Attachment 3. The City Attorney's position was that if Washington 111 believed that the conditions being imposed on the grading permit exceeded the City's authority under the original conditions of approval, Washington 111 needed to raise that concern by objection or appeal rather than by inserting what was essentially an unapproved contract that would purportedly bind future City Council action as a note on a set of plans. After the City Attorney's disapproval of the disclaimer language and agreement was reported by Public Works to Washington 111, Washington 111 indicated that it was justified in eliminating the Washington Street inlet structures. Washington 111 also reported that insufficient capacity was available to accommodate Champion Chevrolet flows. On March 24, 2005, Washington Park filed an appeal of the Public Works Department's decision with regard to the drainage conditions, and further. objected to the processing of the Final Maps for 32683-1, -2 and -3. The appeal is submitted herewith as Attachment 4. 315 8 Public Works Department's Response to Appeal The Public Works Department believes that the appeal is without merit. The Public Works Department does not believe that Washington 111 is complying with the Specific Plan drainage conditions. Condition of Approval 39 states that storm drainage historically received from adjoining property shall be received and retained or passed through into the historic downstream drainage relief route. Failure to install storm drain inlet structures on Washington prevents Condition of Approval #39 from occurring. The historical downstream drainage relief route was not Washington Street but land within Washington Park, which would ultimately drain to areas now known as Caleo Bay Drive and Lake La Quinta. Further, failure to provide storm drain inlet structures on Washington creates an unsafe driving condition from water accumulation and effective lane closures in larger storm events. Photos taken during the December 2004 storms Attachment 5) indicate significant water collection adjacent to the gutter flowline at Washington which effectively creates the loss of 1 of 3 travel lanes. The Public Works Department does not believe that it is imposing new conditions, but is rather compelling compliance with the existing conditions. The Public Works Department is not requiring Washington 111 to accept all off -site drainage, but instead is proposing a design that allows Washington 111 to pass the - drainage through the site to historic downstream relief routes. Public Works proposes that future inlet structures would be installed on Washington Street, routed to adjacent retention basins 2 & 4. Overflows would be piped to 47' and Caleo Bay and directed to Lake La Quinta as the historical downstream drainage relief route. Finally, the Public Works Department believes it is properly processing the Final Map applications. Before the Final Maps are approved, Washington 111 must comply with the conditions of approval to the tentative maps. As stated above, the Public Works Department has concluded that Washington 111 has not yet satisfied the conditions, including Condition No. 37, in not one, but multiple locations within the Washington Park development. Public Works requests that a revised hydrology report for all six phases of Washington Park be submitted and approved by the City Engineer before approval and recordation of Parcel Map 32683. In accordance with the La Quinta Municipal Code Section 2.04.130, the Council is required to. hold a hearing on the appeal. The Code then permits the City Council to uphold the actions of the Public Works Department, overturn those actions, modify those actions, or continue the matter to obtain additional information. 316 9 The Public Works Department and the City Attorney will be available during the hearing to provide additional information. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Conduct a public hearing to consider the appeal filed by Washington 1 1 1, Ltd., regarding Grading Permit conditions and the processing of Final Maps 32683-1, 32683-2, and 32863-.3 in accordance with La Quinta Municipal Code Section 2.04.130, and uphold the actions of the Public Works Department; or 2. Conduct a public hearing to consider the appeal filed by Washington 1 1 1, Ltd:, regarding Grading Permit conditions and the processing of Final Maps 32683-1, 32683-2, and 32863-3 in accordance with La Quinta Municipal Code Section 2.04.130, and direct a modification of the actions of the Public Works Department; or 3. Conduct a public hearing to consider the appeal filed by Washington 1 1 1, Ltd., regarding Grading Permit conditions and the processing of Final Maps 32683-1, 32683-2, and 32863-3 in accordance with La Quinta Municipal Code Section 2.04.130, and sustain the appeal and give appropriate related direction to the Public Works Department; or 4. Conduct a public hearing to consider the appeal filed by Washington 1 1 1, Ltd., regarding Grading Permit conditions and the processing of Final Maps 32683-1, 32683-2, and 32863-3 in accordance with La Quinta Municipal Code Section 2.04.130, and then continue the matter to obtain additional information; or 5. Provide staff with alternative direction. Respectfully submitted, Timothy J ly on, Public Works Director 317 10 Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Washington Park Retail Center Hydrology Map 2. Index Map for Phase 3 Precise Grading Plans 3. Washington 1 1 1's requested language for drainage plans 4. Washington 1 1 1 's appeal 5. Photo taken during the December 2004 storms 318 11 %TT79-CHM 0�6 d CL IVA ram, ti Q15 XX rp CC rr 41 wo po 06 1A b. . LU Ct) cc c.......... . ....... L O ..... .... ..... 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'✓. r....'• 9 ✓AG• - NO, ENT 13132 a ATTACHMENT DRAFT TO BE ATTACHED TO HYDROLOGY STUDY, STREET PLANS OR ANY OTHER DOCUMENT THAT REQUIRES WASHINGTON 111, LTD, OR ANY SUCCESSOR, TO ACCEPT DRAINAGE FROM LANDS OUTSIDE THE BOUNDARY OF WASHINGTON PARK The City of La Quinta ("City") is requesting an acknowledgement ("Acknowledgment") from Washington 111, Ltd., on behalf of itself and its successors -in -interest (collectively, "Washington 111 "), that Washington 111 has agreed to accept into storm drain facilities, including retention basins, curb inlet structures, oversized pipe and appurtenant facilities (collectively, "Drainage Facilities") within or otherwise serving land within Tentative Tract Map 32683("Washington Park"), drainage from the Champion Motors site, located at 78-611 Highway 111, La Quinta, California bounded by Simon Drive and Highway I I I ("Champion Site"), and perhaps other sites outside Washington Park as well (the Champion Site and such other sites are collectively referred to as "Offsite Source(s)"). City has also requested that the Acknowledgment be attached to any hydrology report, hydrology map and/or certain other technical documents and/or plans related to the development of Washington Park. As an accommodation to City only, Washington I I I has agreed to accept drainage from the Offsite Sources ("Offsite Drainage"). However, in doing so, Washington 111 is expressly reserving any and all legal rights Washington I I I has to recover from City, other agencies and any or all owners and/or users of the Offsite Sources, including the Champion Site, (i) the cost of expanding and improving any Drainage Facilities at Washington Park, as may be necessary to accept such Offsite Drainage, (ii) the ongoing cost of maintaining and/or operating any Drainage Facilities at Washington Park, including any remediation costs incurred because such Offsite Drainage contains any environmental contaminants, including hazardous wastes, hazardous substances, hazardous materials and/or pollutants, as described in federal, state and local laws and regulations, and (iii) any damages to which Washington 111 may be entitled under the law. Without limiting the generality of the foregoing, City has agreed to condition any future discretionary permit issued in connection with any of the Offsite Sources, including the Champion Site, to retain onsite all onsite drainage and all allocable offsite drainage, it being the intent that, in the future, none of the Offsite Sources, including the Champion Site, will drain into the Drainage Facilities at Washington Park. In the meantime, it is understood that City will allow Washington III to construct deeper retention basins at Washington Park (i.e., with an average of 2 to 3 feet deeper) than originally approved, to temporarily accommodate drainage from the Offsite Sources, including the Champion Site, and when the Offsite Sources no longer drain into the Drainage Facilities at Washington Park, City may require that the retention basins at Washington Park be modified to be shallower. City has also agreed that, if a discretionary permit application is received in connection with any of the Offsite Sources, including the Champion Site, and there is not already an agreement in place between the owner of the applicable Offsite Source and Washington 111, City will condition such permit to pay to Washington 111, the applicable Offsite Source fair share of the cost of (a) any initial oversizing of the Drainage Facilities required by the additional drainage burden created by the Offsite Source (based on cubic feet of additional water volume added to the Washington Park retention system), (b) continued maintenance of the Drainage Facilities until the Offsite Source no longer drains into the Drainage Facilities at Washington Park and (c) 3?1 DRAFT any modification of the retention basins at Washington Park required by City to make them shallower after the Offsite Source no longer drains into the Drainage Facilities at Washington Park. By signing this document, the undersigned certify that they have read and understand this document. Signature of Washington 111 Signature of City Representative Title of Document to which this document is attached 3 `' 2 ATTACHMENT Z GRESHAM, SAVAGE, NOLAN & TILDEN �' =• LAWYERS (909) $84-2171 ::'',.� ;;, L }i +`; �� • .:.. Facsimile (909) 890-9690 CITY ti`;:T4.1.•EI_�h'3 U CI`iL TRANSMITTAL• HAND DELMRED [E (_L_� i Q H TO: City Clerk MAR 2 5 2005 City of La Quinta CITY OF LAWINTA COMMUNITY DEVELOPMENT FROM: Mark Ostoich DATE: March 24, 2005 RE: Appeal of Findings and/or Conditions Enclosed are the following: 1. Check in the amount of $175, representing the required Appeal Fee. 2, Application for Appeal of Findings and/or Conditions MAO/pmj Enclosures N:\W742\OOOU,LATtansmittal-City of La Quinta-01 3?3 is- GRESHAM SAVAGE NOLAN & TILDEN Check Date Check No COLA CITY OF LA QUINTA 03/2412005 084086 DocNo ApplyTo Vendor Credit No Vendor Inv No Open Amt Disc Amt Pay Arr, 084086 123795 $175.00 $0.00 $175.00 I }• jr " y y `fN7 "t•` 1 F' 4 :. '. r ..:::iY•::'ai':: ' i,�%-lTi4 :n'•t�4�i,'.i'3;�?:n(_:i ITI • s Stub Total $175.00 $0.00 $1T5.00 "OLORED BACKGI I' • ON �''S , A 0,..7j.r A.0a est 2nd.St.`wrpat 0314/200�5y-�.� GO �L t �. Yyf')�r� ti +.��'fi;�+P��i ^s'r.Y��3i'�i:Y,ift ��• II'08408611' 1: 12 20004961: 58 10003 1 13t1' 324 �� ^1` + . rx , -', City of La QUinta Community Development Department,, _ T 78-495 Calle Tampico ;'_ v= , La 53 Quintai.Califomia 922 F; t (760) 777-7125 FAX (760) 77 133 r R `cI i Y ut: � I _-PlAtowmew 2L }_(Cross out one that does not apply) Applicadonfor Appeal of Findings Andl . g Or OFFICE USE ONLY CM r44. � t � Conditions Appellant's Name .Washington 111, Ud. �atC 3/24/05 M,40ngAddress 78-365 Hwy ill, Suite 351, La Quinta, -CA 92253 Phone:. 760/ 485-5308 Resolution # and Condition(s) of Approval being appealed_;___ Any development review action may be appealed pursuant to Section 9.220.120 of the Zoning Code. Please identify the type of application; Type of Appeal: Change of Zone _Tentative Tract Specific Plan Tentative Parcel Conditional Use PermitMap Variance ______ Site'Dcvelopmeat Permit Minor Use Permit ----- Temporary Use Permit XXX Other . Grading Permit and Final Pleprovide sufficient information so as to make clear the substan Map Approval ase If applicable, indicate the -number of the � °f each of the grounds for appeal, specific condition which is being Drotested. 1. Appellant appeals and.ob'ects to the Gradin. Permit Condition that it install facilities for the physical acceptance 'of tributory drainage flows from o s te. 2. Appellapt appeals -and objects to sitalling the a royal recess for the Final based on this unrelated Grading Permit.. Maps -XSee attached letter from Counsel for Appellant for additional information ) Use additional sheets :if necessary. Washington 111, Ltd. B6Wpal Finds -Coed 325 1$- GRESHAM SAVAGE NOLAN & TILDEN A PROFESSIONAL CORPORATION •., ; ! LAWYERS - FOUNDED 1910 FOrt THE FIRM:550 EAST HOSPITALITY LANE, SUITES66 ; j +? ? Mark A. Ostoich SAN BERNARDINO, CALIFORNIA 92408-4205 e-mail: Marfc.0uoicb hamsavage.com (909) 890-4499 - FACSIMILE (909) 890-9A •;r , ; ' i� A` r www.greshamsavagexom f.; iC C March 24, 2005 HAND DELIVERED City of La Quinta Office of the City Council 78-495 Calle Tampico La Quinta, California 92253 Re: Appeal of Approval of Grading Permit Conditions of Approval for the Development of a Trader Joe's Developer: Washington 111, Ltd. Dear Council Members: I represent Washington 111, Ltd., appellant in the above referenced matter. Mike McCormick and Russ Behrens of McCormick, Kidman & Behrens are co -counsel. Together, we are hopeful that we can resolve the issues that have recently delayed the development of the Trader Joe's store appellant is developing near the intersection of Highway 111 and Washington Street. On December 17, 2002, the City of La Quinta approved Resolution No. 2002-167, which adopted Amendment No. 4 of the Washington Park Specific Plan. The City added several conditions of approval. On March 23, 2004, the City's Planning Commission approved Site Development Permit 2004-800 for the development of a Trader Joe's store. The Trader Joe's project involves approximately 12,000 square feet of space, which represents a very small portion of the approved Washington Park project. During the grading permit process for the Trader Joe's project, appellant received comments that it would be required to_ construct a detention system, including modifying an existing detention basin, to add sufficient capacity to accommodate not only on -site drainage, but un-related . off -site, upstream drainage as well. After discussion and negotiation, including discussion with the City Manager, appellant received a March 14, 2005 email from Paul Goble, City of La Quinta Department of Public Works, stating: "Nevertheless, installation of the proper faciities [sic] for the physical acceptance of tributary drainage flows remain a City policy and standard condition of approval for development project." A copy of the Goble email is attached as Exhibit "A". RIVERSIDE OFFICE - 3750 UNIVERSITY AVENUE, SUITE 250, RIVERSIDE, CA 92501-3335 - (951) 684-2171 - FACSIMILE (951) 684-2150 VICTORVILLE OFFICE - 13911 PARK AVENUE, SUITE 208, VICTORVILLE, CA 92392 - (760) 243-2889 - FACSIMILE (760) 243-0467 326 19, GRESHAM SAVAGE NOLAN & TILDEN A PROFESSIONAL CORPORATION Mark A. Ostoich City of La Quinta March 24, 2005 Page 2 Appellant has recently learned that the City has stopped final map processing for Parcel Maps 32683-1, 32683-2 and 32683-3. Appellant, through its design professionals, received a March 21, 2005 email from Anthony Colarossi; Assistant Engineer I, that he could not "go any further with PM 32683-3. It has been placed on hold until the hydrology is approved by the public works engineers." A follow up email from Mr. Colarossi confirmed that the processing of Parcel Maps 32683-1 and 32683-1 has also been stopped. Copies of the Colarossi emails are attached collectively as Exhibit "B". Appellant is treating.the Goble email as written action that appellant will be required to accommodate on its property, all on -site drainage and unrelated off -site, upstream drainage. Appellant_ hereby appeals that action pursuant to La Quinta City Code sections 2.04.100 .and 2.04.110. The action mentioned in the Goble email is unnecessary because appellant is already accommodating all on -site drainage on its property and is complying with a condition of approval that was imposed in connection with Amendment No. 4 of the Washington Park Specific Plan and that requires appellant to ensure that all unrelated off -site historical storm drainage from adjoining properties is passed through into the historic downstream drainage relief route. The time has passed for the City to impose new conditions and requiring appellant to accept all current flows of whatever nature from unrelated, upstream properties would result in appellant bearing the cost of a public benefit that is not reasonably. related to appellant's proposed use of its property. Appellant is treating the Colarossi emails as written action that the final map approvals will not be processed until the unrelated drainage issue is resolved. Appellant hereby appeals that action. The action violates the Subdivision Map Act provisions regarding approval of final maps that substantially conform to previously approved tentative maps. A. Appellant is Complying with Condition of Approval No. 37. In December 2002 when the City approved the Washington Park Project, it added Condition of Approval No. 37, which provides, "Storm drainage historically received from adjoining property shall be received and retained or passed through into the historic downstream drainage relief route." Condition of Approval No. 37 was restated verbatim as Condition No. 51 in the Conditions of Approval for. Parcel Map 32683. Hereafter, for convenience, the applicable condition of approval will be referred to as Condition of Approval No. 37. Appellant is complying with Condition No. 37 by passing through storm drainage historically received from the Champion Motors site into the historic downstream drainage relief route. Condition No. 37 only applies to storm drainage historically received from adjoining property. It does not apply to nuisance waters or any other flows generated by or on adjoining property. Appellant believes that there are water flows generated by or on the Champion Motors 327 20 GRESHAM SAVAGE NOLAN & TILDEN A PROFESSIONAL CORPORA?ION Mark A. Ostoich City of La Quinta March 24, 2005 Page 3 site, such as waters used to clean the motor vehicles. These waters are not storm waters and thus Condition No. 37 does not require appellant to bear any responsibility for these flows. The term "historically received" is somewhat ambiguous, but certainly refers to storm drainage prior to December 17, 2002. If the term refers to a time prior to development, appellant is informed and believes that storm drainage flowed south across both the current Champion Motors site as well as appellant's property. The Champion Motors development significantly increased historic storm drainage by paving over the ground. If the term refers to storm drainage after the Champion Motors site was developed, the Champion Motors developers channelized and concentrated storm drainage. Development of the Champion Motors site and Simon Drive caused concentrated and channelized flows to create an earthen swale south along Washington Street. In light to moderate storm flows, the drainage then curved to the east at 47`b Street. In heavy storm flows, the drainage proceeded south down Washington Street towards Lake La Quinta. Regardless of whether the term refers exclusively to a period of time prior to development of the Champion Motors Site or refers to both pre -development and post development of the Champion Motors site, appellant is complying with Condition No. 37 by passing the storm drainage into the historic downstream drainage relief route: Appellant has ensured that all storm water received from Champion Motors is directed into .the curb and gutter along Washington Street where it then travels into the curb and gutter along 47`' Street- if the . storm water flow is light to moderate or continues south along Washington towards Lake La Quinta if the flow is heavy. ' Condition No. 37 provides appellant with the choice to receive and retain the storm water or pass it through. Appellant has chosen the pass through option. B. The City Cannot Impose New Conditions. Appellant's right to develop the Trader Joe's project in accordance with the Washington Park Specific Plan and its supporting technical studies (one of which is a hydrology study that does not require the accommodation of the off -site drainage that the City is now asking appellant to accommodate), has vested in accordance with applicable California law. (Avco Community Developer, Inc. v. South Coast Regional Comm. (1976) 12 Cal.3d 785.) Appellant relied on the approved Specific. Plan, the underlying technical studies and applicable City development standards and spent substantial money to construct drainage and street improvements that do not provide inlet structures or otherwise contemplate the acceptance of off -site drainage flows. The drainage and street improvements were designed in accordance with all applicable City requirements and the City has already accepted all of the drainage and improvements. Appellant has complied with all of the conditions of the Washington Park Specific Plan, the Street Improvement Plans and its original approved Hydrology Plan. Appellant is .complying 328 21. GRESHAM SAVAGE NOLAN & TILDEN A PROFESSIONAL CORPORATION Mark A. Ostoich City of La Quinta March 24, 2005 Page 4 with Condition of Approval No. 37 by passing though storm drainage historically received from Champion Motors into the historic downstream drainage relief route that runs down the swale along Washington Street. The City cannot now impose new requirements or modify Condition of Approval No. 37; because appellant's rights have vested. C. The City Cannot Require Appellant to Accommodate All Off -Site Drainage. The City's action requires appellant to install facilities for the acceptance of all .unrelated off -site upstream drainage flows. This is inconsistent with Condition of Approval No. 37 which only requires that appellant accept or pass through storm drainage historically received from the Champion Motors site. This is also inappropriate since the Champion Motors drainage, is not related to appellant's proposed use of its Washington Park property. The " City's action impermissibly shifts the City's burden of paying for a public benefit to appellant. Conditions imposed on land use applications "are valid if reasonably conceived to fulfill public needs emanating from the landowner's proposed use." (Liberty v. California Coastal Comm'n. (1980) 113 Cal.App.3d 491.) The Liberty case involved a developer who wanted to demolish an existing structure and erect a restaurant across the street from a beach. The California Coastal Commission approved the plan, with the condition that the developer agree to provide adequate parking for patrons and public parking after 5 p.m. ,for 30 years, to offset the need for public parking near the beach. This particular area required additional public parking because of earlier planning failures to require other restaurants to provide. sufficient parking. The developer challenged both conditions. The California Court of Appeal agreed that beach parking was a problem and the Commission properly required adequate parking for the restaurant. However, the Court ruled that dedicated free parking went beyond the developer's own land use requirements. The Commission was "attempting to disguise under the police. power its actual exercise of the power of eminent domain." (Liberty, supra at 504). The court concluded that imposing the burden on one property owner to extend beyond his own use "shifts the government's burden unfairly to a private party." (Id.) The United States Supreme Court has specifically ruled that there must be an "essential nexus" between the property owner's own use and the condition to be imposed. (See Nollan v. California Coastal Comm'& (1987) 483 U.S. 825.) Appellant acknowledges that it is responsible for addressing its own on -site drainage, which it has done through its grading and site improvement plans. This is no different than the developer in the Liberty case having to provide parking for its own patrons. Appellant addressed .the storm drainage historically received from the Champion Motors site by ensuring that it passes through to the historic downstream drainage relief route. However, the City's new requirement that appellant receive and retain all drainage of whatever nature from other properties is objectionable. because it is not related to appellant's proposed use of its own property. It would 3 9 2Z GRESHAM SAVAGE NOLAN & TILDEN A PROFESSIONAL CORPORATION Mark A. Ostoich City of La Quinta March, 24, 2005 Page 5 appear that perhaps adjacent property owners are not addressing thdir own on -site drainage. This is unfortunate but the City cannot attempt to address that drainage by making downstream property owners responsible for it. In effect, the City is asking appellant alone to bear the cost of providing flood control measures where the danger of flood is not related to appellant's property use. The City or upstream property owners should bear these costs. The City's recent demand that appellant receive and retain all off -site drainage lacks the "essential nexus" to the underlying Trader Joe's grading permit. The City has an obligation to provide drainage and flood control and it cannot shift this burden to appellant where the drainage is. not related to appellant's proposed use of its property. D. The City Cannot Delay Approval of Final Maps That Are in Substantial Conformance with Previously Approved Tentative Maps and on Grounds Unrelated to the Maps. The City has stopped final map processing for Parcel Maps 32683-1, 32683-2 and 32683- . 3. The sole reason for the delay in processing is the unrelated dispute over the off -site drainage condition discussed above. This delay violates the Subdivision Map Act. Government Code section 66474.1 states that "a legislative body shall not deny approval of a final or parcel map if it has previously approved a tentative map for the proposed subdivision and if it finds that the final or parcel map is in substantial compliance with. the previously approved tentative map." When a developer has produced a final map that satisfies the previously approved tentative map, he is entitled to acceptance and approval of that final map without the imposition of new or altered conditions. (South Coast Central Regional Comm'n. v. Charles A. Pratt Constr. Co. (1982) 128 Cal.App.3d 830.). When a developer demonstrates substantial conformance, approval of the final map is a ministerial act. (Beck Develop. Co. v. So. Pac. Transport. Co. (1996) 44 Cal.App.4'h 1160.) New conditions may not be imposed at the final map stage. (Id.; see also Government Code section 66474.2.) The City previously approved a tentative map with conditions. Appellant has met all of the conditions. Appellant has produced final maps that substantially conform to the previously approved tentative map but the City is refusing to approve them. The City is now unilaterally adding a new condition at the final map stage. The City is asserting that final maps cannot be. processed until the: unrelated off -site drainage issue is resolved. The City cannot impose a new. condition at the stage of final map approval. E. Appellant's Requested Relief. Based on the above, appellant respectfully requests that the City Council rescind the .Department of Public Works imposition of a new condition that appellant be required to accept and retain all unrelated, off -site drainage: Appellant further requests that the City Council 330 2, GRESHAM SAVAGE NOLAN & TILDEN A PROFESSIONAL CORPORATION Mark A. Ostoich City of La Quinta March 24, 2005 Page 6 instruct its staff to complete processing of the final maps for ultimate approval by . the City Council. Very truly yours, t Mark A. Ostoich, of GRESHAM SAVAGE NOLAN & TILDEN, a Professional Corporation MAO/MWN Enclosures N:1W742\000\L;tr\City Council Appeal grading permit conditions-06 331 24 GOBLE EMAIL Exhibit "A" 332 2Ep Phyllis Jackson Subject: FW: Washington Park -----Original Message ----- From: "Paul Goble" <Pgoble@.la-quinta.org> Date: Mon, 14 Mar 2005 13:01:26 To:"Phyllis Jackson" <Phyllis.Jackson@ greshamsavag.e.com> Cc:".Jack Tarr" <tarr@cox.net>, "Bill Sanchez" <gsanchez@dc.rr.com>, "Tim Jonasson" <tjonasson@la-quinta.org>, "Steve Speer" <sspeer@la-quinta.org>, "Kathy Jenson (E-mail)"*<kjenson@rutan.com> Subject: RE: Washington Park Pursuant to my conversation with City Attorney, Kathy Jenson this morning, the City of La Quinta is declining to approve hydrological study and plan attachment language pursuant to your email transmittal of February 28, 2005. As indicated by the City Attorney, a formal letter of protest to the condition could be generated, should you so desire. Nevertheless, installation of the proper faciities for the physical acceptance of tributary drainage flows remain a City policy and standard condition of approval for development projects. Thanks, Paul Goble, P.E. City of La Quinta Public Works -----Original Message ----- From: Phyllis Jackson (mailto:Phyllis.Jackson@greshamsavage.com} Sent: Monday, February 28, 2005 11:07 AM To: Paul Goble Cc: Jack Tarr; Bill Sanchez Subject: Washington Park From Mark Ostoich, Mr. Goble, At Jack Tarr's request, enclosed are provisions Washington 111, Ltd. would like to have attached to hydrology studies, street plans or any other document that requires Washington 111 or any successor to accept drainage from lands outside the boundary of Washington Park. Please look this document over and provide me your comments. I will hear from you. Thanks for your help. Mark Ostoich Phyllis M. Jackson Legal Assistant to Mark A. Ostoich GRESHAM SAVAGE NOLAN & TILDEN 550 E. Hospitality Lane, Ste. 300 San Bernardino, CA 92408-4205 (909) 884-2171 (909) 890-9690 (fax) phyllis.jackson@greshamsavage.com 1 Please also let me know when 333 2f COLAROSSI EMAILS Exhibit "B" 334 2� - Phyllis Jackson Subject: FW: Final Map for Council Approval -----Original Message ----- From: Tony Colarossi [mailto:acolarossi@la-quinta.org] Sent: Monday, March 21, 2005 1:21 PM To: Bill Sanchez Subject: RE: Final Map for Council Approval Yes, they are all held up. Thanks, Tony -----Original Message ---- From: Bill Sanchez [mailto:gsanchez@dc.rr.com] Sent: Monday, March 21, 2005 11:59 AM To: Tony Colarossi Cc: Jack Tarr; Berny Zambrana Subject: Fw: Final Map for Council Approval Tony, What about 32683-1 and 32683-2? Please confirm that these will not be held up. Berny from The Keith Companies will be delivering the 8 1\2 x 11 sheets and stamped,cost estimates -that you requested today. When will the SIA agreements for -1 and -2.be ready? Thanks. Bill Sanchez Construction Manager Washington 111, LTD 78365 HWY 111, No 351 La Quinta, CA 92253 0 760-342-2674 M 760-485-5308 F 760-342-4046 gsanchez@dc.rr.com -----Original Message ----- From: Tony Colarossi [mailto:acolarossi@la-quinta.org] 1 3 35 29 Sent: Monday, March 21, 2005 11:13 AM To: gsanchez@dc.rr.com Subject: Final Map for Council Approval Hey Bill. I can't go any further with PM 32683-3. It has been placed on hold until the hydrology is approved by the public works engineers. So, you need to satisfy Paul's concerns so that he will provide direction to me so that I can provide you the SIAs for your signature. Thank You, Anthony Coiaros.si Assistant Engineer I Phone (760) 777-7089 Fax (760) 777-7155 Email acolarossi@la-quinta.org ***When replying or sending an email message to the City of La Quinta, please request a delivery receipt. Some email adresses are automatically blocked through our firewall.*** . Bill Sanchez Construction Manager Washington 111, LTD 78-365 HWY 111, No. 351 La Quinta, CA 92253 T 760.485.5308 F 760.564.3499 gsanchez@dc.rr.com 2 336 29 MEMORANDUM OF UNDERSTANDING (�;e 1 � - This Memorandum of Understanding ("MOU") is entered into this 3'd day of May, 2005, by and between Washington 111, LTD, a California Limited Partnership ("Developer''), and the City of La Quinta, California, a California Municipal Corporation ("City"). WHEREAS, a dispute has arisen between Developer and City relating to certain hydrology issues associated with the Washington Park development; AND WHEREAS, Developer appealed certain action of the Public Works Department to the La Quinta City Council, which commenced a public hearing on the appeal on April 19, 2005, which hearing was continued to May 3, 2005; AND WHEREAS, representatives of Developer and City have met in an attempt to resolve the appeal and did reach a tentative resolution subject to formal approval by way of this MOU; AND WHEREAS, the purpose of this MOU is to outline the negotiated points. Now, therefore, the parties agree as follows: 1. City agrees that the hydrology reports for Mass Grading, subsequent amendments and for Phases 1 & 2 prepared by PCA for Developer contains City - approved concepts. Developer agrees that the preliminary drainage concepts contained in the report for the Phase 3 area of the development require additional refinement pursuant to paragraph 4 that will be addressed by Developer as part of the plan check process for the already submitted construction improvement plans for Phase 3. Specifically, the City and Developer agree to the following concepts contained in the report and its accompanying hydrology map: a. The size of the drainage tributary area that Developer is responsible for retaining drainage on its site is approximately 65.1 acres including the volume capacity of the retention basins as set forth in the reports referenced in Paragraph 1, and does not include the tributary area known as the Champion Motors site. b. Hydraulic and storm drain plans for Phase 1 & 2 which includes Highway 111, Washington Street and Avenue 47 and all related offsite tributary areas, including hydrologic and hydraulic concepts, offsite inlet structure types, locations, assumptions and methodologies, as they pertain to Phases 1 & 2 and adjacent streets except as set forth in Paragraphs 4 and 6, below, setting forth the need for additional inlets. Page 1 of 4 338 MEMORANDUM OF UNDERSTANDING 2. City and Developer agree that currently the Champion Motors site drains to Simon Drive which subsequently drains onto Washington Street with the flow running south in the east gutter of Washington Street adjacent to the Washington Park development site. The City and Developer further agree that it is desirable to redirect the Champion Motors current storm drainage to an existing underground storm drain system to convey that drainage northerly to the Whitewater Channel. However, until the City or a third party constructs a connection to the existing underground storm drain to affect redirection of that flow, Developer agrees to accept the Champions Motors drainage flow (i.e. storm flows, not nuisance flows resulting from business operations on the Champion Motors site) provided that in doing so Developer is not required to oversize any of its drainage facilities, either temporarily or permanently, to accommodate that temporary drainage condition. Thus, excess drainage that is routed to the retention basins on the Developer site will be allowed to flow offsite when the retention capacity of the basins is exceeded. 3. City agrees to facilitate the design and construction, without cost to Developer, of a drainage connection to an existing underground storm drain located in Washington Street from an appropriate point on Simon Drive that affects redirection of the Champion Motors drainage from its current drainage route northerly to the Whitewater Channel. The drainage connection will be constructed within 60 months of signing this Memorandum. 4. Developer agrees to install, at its cost, a drainage inlet and connecting surface parkway drain in the east curb of Washington Street located north of the first bus stop. The inlet will be built at the time of construction of Phase 3B of Washington Park. The inlet will be sized for Developer's related tributary water for the 20- year storm event pursuant to the amended hydrology report as referenced in Paragraph 1 of this MOU. The drainage will flow from Washington Street via a parkway drain under the meandering sidewalk on Washington Street to the Washington Park parking lot where it will flow in the parking lot curb and gutter to a catch basin that then directs the flow to Retention Basin No. 4 via an underground storm drain pipe. To accomplish retention of the revised tributary area associated with Retention Basin No. 4 (i.e. tributary area that was formerly intended for Retention Basin No. 5) the City agrees that Developer may modify the retention basin to accommodate a water depth exceeding five feet plus one foot of freeboard as measured at the overflow location, provided the square footage of the original retention basin footprint is not decreased. 5. Developer agrees that all retention basins, except for Retention Basin No. 4, will be designed and constructed per Engineering Bulletin 97-03 or as otherwise approved by the City Engineer as required by the Conditions of Approval. City acknowledges that it has approved as an equal solution to Item # 6 of Engineering Bulletin 97-03 the drywell solution for Washington Park based on the letter of opinion issued by Sladden Engineering on Jan 14, 2005. Page 2 of 4 339 MEMORANDUM OF UNDERSTANDING 6. Developer agrees to install, at its cost, an additional inlet in the east curb of Washington Street immediately north of the intersection of Avenue 47 and Washington Street, to intercept related flows generated from a 100 year storm event and divert water through an open swale at approximately a 45 degree angle to an outlet in Avenue 47 and to continue its path of surface drainage as set forth in the (PCA - Phase 1 & 2) Hydrology Study. Construction of this surface inlet would occur at the sooner of (a) construction of Phase 4 of Washington Park, or (b) completion of the connection with the underground storm drain in Washington Street north of Simon Drive. 7. Developer agrees that use of cantilevered buildings or equivalent structures as contemplated and set forth in the (PCA - Phase 1 & 2) Hydrology Study will be subject to the approval of the City Building & Safety Department and City Public Works Director. 8. City agrees that all references to Developer will be deemed to include its successors in interest to all or any part of Washington Park, provided use of the Washington Park site remains as currently approved in Specific Plan 89-011, Amendment #4. 9. City and Developer agree that the primary cause for any delays in the processing of improvement plans was a result of a disagreement regarding the drainage requirements regarding the Washington 111 development site. Now that the City and Developer have resolved the drainage aspects that were in disagreement, it is understood all future processing of improvement plans will proceed per standard City processing policies. Improvement plans submitted by Developer will be returned with plan check comments (if any) for revision in less than ten (10) working days. 10.It is agreed that Map 32683-2 is scheduled for final approval at the May 3, 2005 City Council Agenda. It is also agreed that provided an agreement is reached on the Items set forth in this MOU at the May 3, 2005 City Council meeting that the City Engineer will schedule Map 32683-1 & 3 for the May 17,2005 City Council meeting. 11. If all parties execute the MOU at or before the May 3, 2005 City Council meeting, Developer shall withdraw its appeal. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. Page 3of4 340 MEMORANDUM OF UNDERSTANDING CITY OF LA QUINTA: Thomas P. Genovese, City Manager Date ATTEST: June S. Greek, City Clerk City of La Quinta DEVELOPER: Approved as to Form: M. Katherine Jenson, City Attorney City of La Quinta WASHINGTON 111, LTD., a California limited partnership By: Old Anchor Inc., a California Corporation Its: General Partner 13 Jack Oldham Its: President Date: Date Page 4 of 4 341