Staff Rpt 2025-03-18 HA - BP Dune Palms Rd Utilities Reimbursement ApprovalCONSENT CALENDAR ITEM NO. 2
City of La Quinta
HOUSING AUTHORITY SPECIAL MEETING: March 18, 2025
STAFF REPORT
AGENDA TITLE: APPROPRIATE FUNDS AND APPROVE REIMBURSEMENT FOR
CONSTRUCTION COSTS OF UTILITY UPGRADES ASSOCIATED WITH CERTAIN
REAL PROPERTY COMPRISED OF 5.2 ACRES LOCATED AT THE NORTHEAST
CORNER OF HIGHWAY 111 AND DUNE PALMS ROAD (APN: 600-030-039) TO BP
DUNE PALMS, LP, BY GENERAL PARTNER BLACKPOINT PROPERTIES, LLC
RECOMMENDATION
Appropriate funds and approve reimbursement in the amount of $207,003 for construction
costs of utility upgrades associated with certain real property comprised of 5.2 acres
located at the northeast corner of Highway 111 and Dune Palms Road (APN: 600-030-
039) to BP Dune Palms, LP, by General Partner Blackpoint Properties, LLC.
EXECUTIVE SUMMARY
• On January 17, 2023, the Housing Authority (Authority) approved an Agreement for
Purchase and Sale and Escrow Instructions (PSA) with BP Dune Palms, LP, by
General Partner Blackpoint Properties, LLC (Blackpoint) to purchase 5.2 acres of
vacant real property located west of the Home Depot Center on Highway 111, on
the northeast corner of Highway 111 and Dune Palms Road (Property), for an
affordable housing development.
• On July 16, 2024, the Authority and Blackpoint executed a Side Letter Agreement
(Agreement) formalizing the Authority's reimbursement obligation for construction of
utility undergrounding costs, with future costs from Imperial Irrigation District (IID) to
be brought back upon final invoicing.
• On November 5, 2024, and January 21, 2025, the Authority approved partial
reimbursements in the amount of $366,542 and $179,958, respectively, for utility
improvements related to the Property.
• On February 27, 2025, IID provided allocation fees to complete the offsite conduit
connections. The total cost for this is $381,051, of which the Authority's share is
54.324% of the total fees, equating to $207,003.
An appropriation of $207,003 to Account No. 249-0000-80050 is necessary to cover the
Authority's share of the IID fees.
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Total utility improvements reimbursement costs for the Property to date are $753,503 as
detailed below:
2024 (November 5) $366,542
2025 (January 21) $179,958
2025 (March) $207,003
BACKGROUND/ANALYSIS
On January 17, 2023, the Authority approved a PSA with Blackpoint to purchase the
Property located at the northeast corner of Highway 111 and Dune Palms Road for the
purpose of developing affordable housing with a connecting thoroughfare to CV Link. The
agreement stipulated the Authority's responsibility for relocating and undergrounding utility
lines along Dune Palms Road, or reimbursing Blackpoint if they performed the work
themselves.
In October 2023, Blackpoint recorded Final Parcel Map No. 38668 (DOC # 2023-031546)
with the Riverside County Recorder, subdividing the vacant lot into three parcels, and the
Authority took ownership of the norther portion of the lot (parcel 1), which fronts Dune
Palms Road, and Blackpoint retained the southern portion along Highway 111 comprised
of two new parcels 2 and 3. Blackpoint subsequently commenced utility relocation and
undergrounding work, which has now been substantially completed.
On July 16, 2024, the Authority and Blackpoint executed a Side Letter Agreement pursuant
to Sections 5.8.1 and 5.8.4 of the PSA, which formalized the Authority's reimbursement
obligation for utility undergrounding costs as detailed under the Fiscal Impact section of
this report, with permitting and construction costs each subject to final invoicing from IID.
The current construction costs were provided by Blackpoint on March 5, 2025, detailing a
total cost of $381,051, which includes offsite mitigation work required to deliver adequate
power to the site, including installation of a new IID vault abutting the City property with an
underground connection crossing the street to the vault on the west side, south of the
bridge. The Authority's share, based on the proportional linear footage of conduit installed
along Dune Palms Road (54.324%), calculates to $207,003 (Attachment 1).
Blackpoint will pay the full IID fee immediately to prevent project delays, and, per the PSA,
the Authority must reimburse its share within 30 days. Staff recommends approval of the
appropriation and reimbursement to ensure the timely completion of the project.
ALTERNATIVES
As the Authority approved the PSA terms which stipulate reimbursement for utility
improvements and undergrounding, staff does not recommend an alternative.
Prepared by: Doug Kinley III, Senior Management Analyst, City Manager's Office
Approved by: Jon McMillen, Executive Director
Attachment: 1. Blackpoint — utilities relocation and undergrounding reimbursement invoices
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D1 TRICT
11D
PO BOX 937
IMPERIAL, CA 92251-0937
BUSINESS PARTNER # 3512150
BP DUNE PALMS LP
JEFFERY HALBERT MANAGING MEMBER
1129 INDUSTRIAL AVE
PETALUMA CA 94952
PROJECT DESCRIPTION: OFF SITE MITIGATION
ATTACHMENT 1
DATE: February 27, 2025
SERVICE NOTIFICATION # 4038495
PROJECT LOCATION:
79520 HIGHWAY I I I
LA QUINTA CA 92253
AMOUNT DUE: $381,050.70
DESCRIPTION
COST
Engineering
$
21,338.80
UG Construction
$
100,347.00
UG Transportation
$
18,959.20
UG Materials
$
173,914.28
G&A Overhead
$
60,541.42
Traffic Control
$
5,950.00
TOTAL AMOUNT DUE
$ 381,050.70
THIS ESTIMATE IS SUBJECT TO REVIEW IF IID CONSTRUCTION IS NOT SCHEDULED TO
PERFORM WORK WITHIN THE SIX MONTH TIME FRAME.
IMPERIAL IRRIGATION DISTRICT
81600 AVENUE 58
LA QUINTA, CA 92253, PHONE: (760) 398-5841
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BP Dune Palms
Invoice
c/o Texas Exchange Bank
301 Commerce Blvd, Ste 2901
Fort Worth, TX 76102
Bill To
City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Attn: Douglas Kinley III
Date Invoice No.
03/05/25 8
Terms
Net 30
Project
Hwy 111 & Dune Palms
Item
Description
Amount
Construction Fees
IID Fees
207,003.00
Wire Instructions:
Texas Exchange Bank
ABA Number : 111903232
Beneficiary: BP Dune Palms, LP
Acct Number: 8032708
Thank you for your prompt payment. Total $207,003.00
Please remit payment to above address or via wire instructions.
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IID OFFSITE FEES ALLOCATION
IID SCOPE
IID LF PER NOTE
% RESPONSIBLE
# CONDUIT
TOTAL CONDUIT LF Q,o TOTAL CONDUIT PROPORTIONAL FEE IID OFFSITE FEE
$ 3819051
Note 46 (7-10) P
255
100ao
4
1020
Note 26 (R1-R2) P
35
100uo
2
70
Note 26 P Riser
10
100a)
2
20
Note 66 (1-6) P
185
100'a" b
6
1110
Note 66 (1-6) P
175
1009-b
6
1050
Note 66: 1-6) P
440
13%
6
348
DUNE PALMS TOTAL
3618 54.324% $ 2079003
Note 66: 1-6) P
440
87%
6
2292
Note66 (1-6) P
125
100%
6
750
HWY 111 TOTAL
3042 45.676% $ 1749047
CONDUIT NOTES:
-
. 1) TYPICAL, STUBOUTS ARE REQUIRED TO AVOID UNDERMINING
TRANSFORMER PADS AND SEC. PULLBOXES IN THE FUTURE.
INSTALL 2-5" CND SCH.40 PVC PER SHOWN LENGTH.
330
�„ . -_ 25 (REFER TO SHEETS 10-11,111-123 OF THE D.E.P.G. REV. 5.24 2020
P
m.
75'
0 P,
�•®M_M -4
UN1171064P
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f
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PICK-UP EA 2-5"
(CSP 400400 i )
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UN1171063H
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INSTALL 2-5 CND SCH.40 PVC PER SHOWN LENGTH.
25 (REFER TO SHEETS 10-11,111-123 OF THE D.E.P.G. REV. 5.24 2020)
P
STUB -OUT
IN:6" X 90' SWEEP SCH. 80 PVC & 1-6" CND SCH.80 PVC(10') ABOVE
26 GROUND & 1-6 CND SCH.40 PVC STUB OUT AT BASE OF POLE.
RISER (REFER TO SHEET 262 OF THE D.E.P.G. REV. 5.24 2020)
P
INSTALL 2-6" CND SCH.40 PVC PER SHOWN LENGTH.
26 (REFER TO SHEETS 10-11,111-123 OF THE D.E.P.G. REV. 5.24 2020)
P
INSTALL 4-6" CND SCH.40 PVC PER SHOWN LENGTH.
46 (REFER TO SHEETS 10-11,111-123 OF THE D.E.P.G. REV. 5.24 2020)
P
INSTALL 6-6" CND SCH.40 PVC PER SHOWN LENGTH.
66 (REFER TO SHEETS 10-11,111-123 OF THE D.E.P.G. REV. 5.24 2020)
P
INSTALL 6-6" CND SCH.40 PVC PER SHOWN LENGTH.
66 (REFER TO SHEETS 10-11, 111-123 OF THE D.E.P.G. REV. 5.24 2020)
P
STUB -OUT
TRENCHING DETAILS:
� _7 2-4 PRI. DUCT CONC. ENCASED
D D REFER TO SHEETS 116 & 122-123 OF THE D.E.P.G. REV. 5.24 2020
5-9 PRI. DUCT CONC. ENCASED
REFER TO SHEETS 116 & 122-123 OF THE D.E.P.G. REV. 5.24 2020
COMPACTION BACK FILL MULTI PRI. DUCT
G REFER TO SHEETS 116 & 122-123 OF THE D.E.P.G. REV. 5.24 2020
CURVE DATA TABLE
#
RADIUS
<
LENGTH
R1
12.5'
900
19.63'
RD
12.5'
450
9.81'
R3
25.0'
900
39.26'
R4
25.0'
450
19.63'
TRENCHING NOTES:
TYPICAL: CONTRACTOR SHALL INSTALL
2 LINE GUARD TAPE (RED)
"CAUTION: BURIED ELECTRIC LINE BELOW."
(REFER TO SHEET 122 OF THE D.E.P.G. REV. 5.24 2020)
TYPICAL: 7'-8" FROM FACE OF CURB
TO CENTER OF TRENCH.
CONDUITS SHALL BE INSTALLED WITHIN 10' P.U.E.
UNLESS OTHERWISE NOTES.
(REFER TO SHEET 113 OF THE D.E.P.G. REV. 5.24 2020)
STRUCTURAL DETAILS_
m SUBSTRUCTURE MEDIUM VAULT EQUIPMENT ENCLOSURE
REFER TO SHEETS 184-185, 210-212, & 235-240 OF THE D.E.P.G. REV. 5.24 2020
LARGE SWITCH PAD
REFER TO SHEETS 192-193, 210-212, 219-221 OF THE D.E.P.G. REV. 5.24 2020
THREE PHASE SECTOR SLEEVE & IID CLEARANCES
REFER TO SHEETS 192-198, 201-203, 207-209, 223-228 OF THE D.E.P.G. REV. 5.21
2020
PRIMARY RISER POLE
REFER TO SHEET 120 & 262 OF THE D.E.P.G. REV. 5.24 2020
m STUB OUT MARKER DETAIL
REFER TO SHEETS 124 & 125 OF THE D.E.P.G. REV. 5.24 2020
CAUTION: IID ENERGIZED STRUCTURES & CABLE
VAULT DETAIL: VAULT DETAIL:
VAl ll T• 11N1159212S
VAULT DETAIL:
OVTS�DE - -
5 6 A B 1 2 3 4
1 2
3 4
VAULT: U N 1247335S
LOOKING: EAST
F.:
VAULT: U N 1247106S
LOOKING: NORTH
VAULT DETAIL:
/A,_
VAULT`. UN1247336S
LOOKING: NORTH
co
IID Lh
LO
�~ SCALE:1:50
T.5, R.7, SEC.29 z
BP DUNE PALMS LP w
J
CONDUIT LAYOUT �-
SUB: N. LA QUINTA KT: 4008 DATE:12/04/2024 1 SHEET 1 OF 1
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