Staff Rpt 2024-11-05 HA - BP Dune Palms Rd Utilities Reimbursement ApprovalCity of La Quinta
HOUSING AUTHORITY SPECIAL MEETING: November 5, 2024
STAFF REPORT
AGENDA TITLE: APPROVE REIMBURSEMENT FOR UTILITY IMPROVEMENTS
ASSOCIATED WITH CERTAIN REAL PROPERTY COMPRISED OF 5.2 ACRES
LOCATED ON 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
Approve reimbursement in the amount of $366,542 for utility work associated with certain
vacant real property comprised of 5.2 acres, located on 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.
•The PSA requires the Authority to relocate and underground the utility lines abutting
Dune Palms Road at its own expense or reimburse Blackpoint if they complete it
instead.
•Blackpoint is finalizing this work and requesting reimbursement from the Authority.
FISCAL IMPACT
Total reimbursement cost for the utility improvements is $366,542. Funding is available in
fiscal year (FY) 2024/25 budget, supplemented by unspent funds carried over from FY
2023/24 (account no. 249-0000-80050). After the requested reimbursement is paid,
approximately $132,000 will remain available in the account for FY 2024/25 for other
affordable housing projects and planning expenditures.
BACKGROUND/ANALYSIS
On January 17, 2023, the Authority adopted Resolution No. HA 2023-001 approving a PSA
with 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
CONSENT CALENDAR ITEM NO. 2
7
Road, for an affordable housing development with a connecting thoroughfare to CV Link, as
depicted in the vicinity map included as Attachment 1 .
The Property was acquired using a mix of Successor Agency (Fund 249) funds and General
Fund Unassigned Reserves. Development of the Property will support affordable housing
development as part of the Regional Housing Needs Assessment (RHNA) requirement for
the City, provide commercial opportunities for businesses, and further the development of
the Highway 111 Corridor Plan, which emphasizes mixed-use development.
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 in
accordance with State and City laws under the Subdivision Map Act (Gov. Code, § 66410 et
seq.). Blackpoint retained the southern portion of the vacant lot along Highway 111
comprised of two new parcels (parcels 2 and 3), and the Authority purchased the northern
portion, the Property (parcel 1) that affronts Dune Palms Road and the All American Flood
Control Channel (Channel).
On October 23, 2023, the Authority and Blackpoint executed Amendment No. 1 to the PSA
which removed the Authority’s reimbursement obligations related to the construction of the
Stormwater Outflow Line, including permits and approvals needed for the Northern and
Southern Properties pursuant to Section 5.8.2; thus, the Authority is no longer responsible
for these costs.
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, requiring the Authority to reimburse Blackpoint for
any costs associated with the utility relocation and undergrounding (A ttachment 2). The
agreed upon amount is $366,542. The majority of work is already completed and Blackpoint
has submitted a reimbursement request for $307,105.03 detailed in the invoices submitted
as Attachment 3. Funding is available in FY 2024/25 budget.
ALTERNATIVES
As the Authority approved the PSA terms which require these improvements , staff does not
recommend an alternative.
Prepared by: Doug Kinley III, Senior Management Analyst, City Manager’s Office
Approved by: Jon McMillen, Executive Director
Attachments: 1. Vicinity Map
2. Side Letter Agreement with Blackpoint
3.Blackpoint – utilities relocation and undergrounding reimbursement invoices
8
Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS,USDA, USGS, AeroGRID, IGN, and the GIS User Community
City of La Quinta
Design and Development Department
PROPERTYACQUISITION
DUNE PALMS AND HWY 111
December 2022
®
Planning DivisionDune Palms RdHighway 111
Walmart
Coral MountainApartments
La QuintaHigh School
La Quinta Valley Plaza
CVLink
La Quinta DriveCostco
Dunes BusinessPark
ATTACHMENT 1
RESOLUTION NO. HA 2023-004 EXHIBIT A ADOPTED: OCTOBER 17, 20239
{BLKPNT/0026/AGR/02148814.DOCX 2}
BP DUNE PALMS LP
c/o Blackpoint Properties, LLC
1129 Industrial Ave, Ste. 205
Petaluma, California 94954
Phone: 415-601-2589
Email: jeff@blackpoint.com
July 16, 2024
La Quinta Housing Authority
78495 Calle Tampico
La Quinta, CA 92253
Attn: Jon McMillen,
Executive Director
City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Attn: Gilbert Villalpando
Director, Business Unit and Housing Development
City Manager's Office
Gvillalpando@laquintaca.gov
Re: Parcels 1, 2, and 3 of Parcel Map No. 38668 filed October 25, 2023 as 257 PM 35,
NEC CA Hwy 111 & Dune Palms Rd, La Quinta, CA 92247 (the “Property”)
Dear Mr. McMillen and Villalpando:
As you know, in connection with the development of the above-referenced Property, and
pursuant to Section 5.8.1 of that certain Agreement for Purchase and Sale and Escrow
Instructions dated January 18, 2023 (as amended, the “PSA”) by and between BP Dune Palms
LP (“BP”), as the Seller, and La Quinta Housing Authority (“Authority”), as the Buyer,
concerning the Authority’s purchase of that portion of the Property designated as Parcel 1 on the
referenced Parcel Map, the Authority is obligated to complete the utility relocation and
undergrounding of the Utility Lines (as defined in the PSA) abutting Dune Palms Road, at the
Authority’s sole cost, and BP is obligated to complete the utility relocation and undergrounding
of the Utility Lines abutting State Highway 111, at BP’s sole cost, as required by IID (as defined
in the PSA). The PSA further provides, at Section 5.8.4, that in the event that, in connection
with BP’s development of Parcels 2 and 3, BP completes the required undergrounding of Utility
Lines along Dune Palms Road, the Authority shall reimburse BP for the cost of that work,
including all related fees, costs and expenses for permits or other approvals, on the conditions set
forth in Section 5.8.4.
This letter constitutes the written notice by BP to the Authority, and when countersigned
by the Authority below, the written agreement between BP and the Authority described in
Section 5.8.4 of the PSA; provided, however, that if IID requires the Authority (or City of La
Quinta (“City”)) and/or BP to enter into a separate utility relocation and reimbursement
agreement or other similar form of agreement that would also govern the relocation and
undergrounding of the Utility Lines along Dune Palms Road and/or appurtenant to Parcel 1, then
BP, and Authority and/or City, will enter into such agreement.
ATTACHMENT 2
10
{BLKPNT/0026/AGR/02148814.DOCX 2}
BP hereby agrees to undertake and cause the completion of the utility relocation and
undergrounding of Utility Lines abutting Dune Palms Road as required by IID (the “Dune Palms
Road Undergrounding Work”), including the work described in the J. H. Thompson & Sons, Inc.
scope of work letter dated June 24, 2024 and attachments thereto (“Scope of Work”) attached to
this letter as Exhibit A, at the Authority’s expense. Authority shall reimburse BP for, or at BP’s
direction shall pay directly to BP’s contractor, all of the actual cost (including engineering,
survey, staking, testing and inspection costs, and the cost of the work described in the Scope of
Work including contractor’s reasonable overhead and profit) of the Dune Palms Road
Undergrounding Work within ten (10) days following presentation of written progress payment
applications therefor in commercially reasonable form. The total cost of the Dune Palms Road
Undergrounding Work, excluding engineering, survey, staking, testing and inspection costs and
Fees (hereinafter defined), is set forth in the Scope of Work. BP shall not approve any change
order which has the effect of increasing the cost of the Dune Palms Road Undergrounding Work
without Authority’s written approval, which shall not be unreasonably withheld or delayed.
BP and the Authority further agree that the cost of all administrative, permit, and
inspection fees and any other fees imposed by IID, by any government agency or by any other
utility company in connection with the relocation and undergrounding of Utility Lines on or
abutting the Property in Dune Palms Road and/or State Highway 111 (collectively, the “Fees”)
shall be allocated between them as follows: The portion of the Fees included in the cost of the
Dune Palms Road Undergrounding Work shall be equal to the total amount of Fees multiplied by
that fraction in which the numerator is the number of linear feet of utility conduit used in the
relocation and undergrounding of Utility Lines in or alongside Dune Palms Road, and the
denominator is the total number of linear feet of utility conduit used in the relocation and
undergrounding of Utility Lines on and abutting the Property. The Authority shall reimburse BP
for, or at BP’s direction shall pay directly to the assessing authority, the portion of the Fees
included in the cost of the Dune Palms Road Undergrounding Work within thirty (30) days
following receipt of BP’s invoice therefor.
The parties acknowledge that the Dune Palms Road Undergrounding Work will require
an encroachment permit to be issued by the City of La Quinta (“City”), the application for which
will be submitted by BP following execution of this letter agreement. The Authority agrees to
use best efforts and facilitate, and work with the City, so as to expedite review and approval by
the City of an encroachment permit (and any other City-issued permits), required for the Dune
Palms Road Undergrounding Work, within ten (10) working days following submission of a
complete application. Nothing in this letter agreement absolves or shall be deemed to absolve
the City’s regulatory authority or legal obligations for processing of permits.
Please confirm the Authority’s agreement to the above terms by returning a
countersigned copy of this letter signed by Authority’s authorized representative in the space
below. When signed by both parties, this letter shall constitute a binding agreement between the
parties hereto.
[signatures on next page]
11
12
{BLKPNT/0026/AGR/02148814.DOCX 2}
EXHIBIT A
SCOPE OF WORK
See attached
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Page 1 of 6 14
Page 2 of 6 15
Page 3 of 6 16
Page 4 of 6 17
Page 5 of 6 18
T1241314-50'1241330-50'1241329-50'UN1159212SUN1171062SUN1036969SUN1171063HHIGHWAY 111DUNE PALMS RDCORPORATE CENTER RDUN1103106HUN1247107HNEW PMH-11UN1247106SUN1171064PPICK-UP EXIS. 6-6"(CSP 4004006)R1R3R4R4R3320'25250'25P85'25P70'25175'66185'66(1-6)430'66EXIS. 3-#1/0 ACN
7.2/12.5 KV (4008)
D DE E G GG GG G
G G
D D
D
D
D D
E E E EG GE ED DSTUB-OUTSTUB-OUTR210' IID EASEMENTTO BE GRANTED10' IIDEASEMENT TOBE GRANTED10' IID EASEMENTTO BE GRANTED10' IID EASEMENTTO BE GRANTEDPICK-UP EXIS. 2-5"(CSP 4004006)P(A-B)P(1-6)P(1-6)P10' EASEMENT10' EASEMENTPUN1247335S75'25PSTUB-OUT150'25(A-B)R1R16'TO BE RELOCATEDUN1241302V1210783-35'255'46(7-10)PR4R4G GD DD DUN1247336S125'66(1-6)PPR4R4GG240'25PUN1247338HDESIGN'D:CKT:SERV. ORDER:DATE:SHEET OFIID1:50T.5, R.7, SEC.29SCALE:SERV. NOTIF.:SUB:FILE NAME:I.MILWARD60143304 N. LA QUINTACONDUIT LAYOUT04/23/202411BP DUNE PALMS LP403590840084035908 PROJECT SITEADAMS ST.WESTWARD HO DR.HIGHWAY 111DUNE PALMS RD
JEFERSON ST.LARGE SWITCH PADREFER TO SHEETS 192-193, 210-212, 219-221 OF THE D.E.P.G. REV. 5.24 2020SUBSTRUCTURE MEDIUM VAULT EQUIPMENT ENCLOSUREREFER TO SHEETS 184-185, 210-212, & 235-240 OF THE D.E.P.G. REV. 5.24 2020STRUCTURAL DETAILS:1) TYPICAL, STUBOUTS ARE REQUIRED TO AVOID UNDERMININGTRANSFORMER PADS AND SEC. PULLBOXES IN THE FUTURE.CONDUIT NOTES:INSTALL 2-5" CND SCH.40 PVC PER SHOWN LENGTH.(REFER TO SHEETS 10-11,111-123 OF THE D.E.P.G. REV. 5.24 2020)25PTRENCHING DETAILS:G GCOMPACTION BACK FILL MULTI PRI. DUCTREFER TO SHEETS 116 & 122-123 OF THE D.E.P.G. REV. 5.24 2020D D2-4 PRI. DUCT CONC. ENCASEDREFER TO SHEETS 116 & 122-123 OF THE D.E.P.G. REV. 5.24 2020E E5-9 PRI. DUCT CONC. ENCASEDREFER TO SHEETS 116 & 122-123 OF THE D.E.P.G. REV. 5.24 2020STUB OUT MARKER DETAILREFER TO SHEETS 124 & 125 OF THE D.E.P.G. REV. 5.24 2020INSTALL 6-6" CND SCH.40 PVC PER SHOWN LENGTH.(REFER TO SHEETS 10-11,111-123 OF THE D.E.P.G. REV. 5.24 2020)66PCAUTION: IID ENERGIZED STRUCTURES & CABLECURVE DATA TABLE<# RADIUS LENGTHTRENCHING NOTES:TYPICAL: CONTRACTOR SHALL INSTALL2" 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 CURBTO 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)R112.5' 90° 19.63'INSTALL 6-6" CND SCH.40 PVC PER SHOWN LENGTH.(REFER TO SHEETS 10-11, 111-123 OF THE D.E.P.G. REV. 5.24 2020)66PSTUB-OUTPRIMARY RISER POLEREFER TO SHEET 120 & 262 OF THE D.E.P.G. REV. 5.24 202012.5' 45° 9.81'R2R3INSTALL 2-5" CND SCH.40 PVC PER SHOWN LENGTH.(REFER TO SHEETS 10-11,111-123 OF THE D.E.P.G. REV. 5.24 2020)25PSTUB-OUT25.0' 45° 19.63'R425.0' 90° 39.26'INSIDEOUTSIDEVAULT DETAIL:VAULT: UN1159212S LOOKING: NORTH----XXX-1XX324X5--6-12XXXXXX3456--------INSIDEOUTSIDEVAULT DETAIL:VAULT: UN1247106S LOOKING: NORTH----15--326A4B------341265--------------INSTALL 4-6" CND SCH.40 PVC PER SHOWN LENGTH.(REFER TO SHEETS 10-11,111-123 OF THE D.E.P.G. REV. 5.24 2020)46PINSIDEOUTSIDEVAULT DETAIL:VAULT: UN1247335SLOOKING: EAST----15--326-4-------341265--AB----------INSIDEOUTSIDEVAULT DETAIL:VAULT: UN1247336SLOOKING: NORTH----79---810---------341265--------------CITY OF LA QUINTA IID SCOPE:CONSTRUCT AND PROPORTIONALFEESDEVELOPER TO CONSTRUCTHATCHED AREA - CITY RESPONSIBLEFOR PROPORTIONAL IID FEES(UN1247106S TO SOUTH CORNER)345'440'Page 6 of 619
Date:9/1/2024
BP Dune Palms, LP
City of La Quinta
Vendor Expense Amount 100%
JH Thompson GC General Contractor 164,099.70$
Truxaw & Associates - Staking Civil Engineering 3,496.67$
ACBI - Cultural Monitor Special Inspections 575.00$
TOTAL 168,171.37$ 168,171.37$
ATTACHMENT 3
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21
22
23
24
25
26
- Single Mobilization for City IID Work
27
28
Charge Date Charge Code Description Fixed Charge Quantity Unit Price Amount Sales
Ta x
8/15/2024 Monitoring Cultural Monitoring $0.00 4.00 125.000000 $500.00
8/25/2024 Monitoring Admin Fee $75.00 0.00 0.000000 $75.00
Invoice
Payment Terms: Net
BP Dune Palm s LP
11 29 Industrial Avenue Ste 205
Petaluma, CA 94952
$0.00
Ag ua Caliente Band of Cahuilla Indians
8/25/2024
Billing Address
30 Sales Tax:
5401 Dinah Shore Drive
Palm Springs, CA 92264
Phone 760.699.6800 Fax 760.699.6808
Service Address
Make Checks Payable to Agua Caliente Band of Cahuilla Indians
Contract 03-003-2023-001
To tal:$575.00
If you would like your invoice by email, let us know at accounting@aguacaliente.net
BP Dune Palms LP
Highway 111 & Dune Palms Mixed Use Dev
79520 & 79580 Hwy 111
La Quinta, CA
If you have any questions concerning this invoice, please contact Accounting at accounting@aguacaliente.net
5410
Days
29
Date:10/1/2024
BP Dune Palms, LP
City of La Quinta
Vendor Expense Amount 100%
JH Thompson GC General Contractor 123,294.60$
CRM Tech Archeology Special Inspections 2,325.00$
ACBI - Cultural Monitor Special Inspections 13,314.06$
TOTAL 138,933.66$ 138,933.66$
30
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38
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Invoice
Date
8/29/2024
Invoice #
6067
Bill To
Blackpoint Properties, LLC
Attn: Clement Balser
1129 Industrial Avenue, Suite 205
Petaluma, CA 94952
Ship To
Tentative Parcel Map No. 38668 Project
In the City of La Quinta
Riverside County, California
CRM TECH Project No. 4102
CRM TECH
1016 E. Cooley Drive, Suite A/B
Colton, CA 92324
P.O. No.
Progress billing.Total
Balance Due
Payments/Credits
Serviced Description Qty Rate Amount
7/29/2024 Monitoring 8 95.00 760.00
7/30/2024 Monitoring 8 95.00 760.00
7/31/2024 Monitoring 7 95.00 665.00
7/31/2024 Field documentation 0.5 80.00 40.00
8/1/2024 Field documentation 0.5 80.00 40.00
8/2/2024 Field documentation 0.75 80.00 60.00
$2,325.00
$2,325.00
$0.00
40
41
42
43
44
Charge Date Charge Code Description Fixed Charge Quantity Unit Price Amount Sales
Ta x
7/29/2024 Monitoring Cultural Monitoring $0.00 7.50 125.000000 $937.50
7/30/2024 Monitoring Cultural Monitoring $0.00 7.50 125.000000 $937.50
7/31/2024 Monitoring Cultural Monitoring $0.00 6.50 125.000000 $812.50
8/1/2024 Monitoring Cultural Monitoring $0.00 5.25 125.000000 $656.25
8/5/2024 Monitoring Cultural Monitoring $0.00 8.00 125.000000 $1,000.00
8/6/2024 Monitoring Cultural Monitoring $0.00 5.50 125.000000 $687.50
8/7/2024 Monitoring Cultural Monitoring $0.00 7.00 125.000000 $875.00
8/8/2024 Monitoring Cultural Monitoring $0.00 7.50 125.000000 $937.50
8/11/2024 Monitoring Admin Fee $1,026.56 0.00 0.000000 $1,026.56
Invoice
Payment Terms: Net
BP Dune Palms LP
11 29 Industrial Avenue Ste 205
Petaluma, CA 94952
$0.00
Ag ua Caliente Band of Cahuilla Indians
8/11/2024
Billing Address
30 Sales Tax:
5401 Dinah Shore Drive
Palm Springs, CA 92264
Phone 760.699.6800 Fax 760.699.6808
Service Address
Make Checks Payable to Agua Caliente Band of Cahuilla Indians
Contract 03-003-2023-001
To tal:$7,870.31
If you would like your invoice by email, let us know at accounting@aguacaliente.net
BP Dune Palms LP
Highway 111 & Dune Palms Mixed Use Dev
79520 & 79580 Hwy 111
La Quinta, CA
If you have any questions concerning this invoice, please contact Accounting at accounting@aguacaliente.net
5389
Days
45
Charge Date Charge Code Description Fixed Charge Quantity Unit Price Amount Sales
Tax
8/28/2024 Monitoring Cultural Monitoring $0.00 4.00 125.000000 $500.00
9/4/2024 Monitoring Cultural Monitoring $0.00 4.00 125.000000 $500.00
9/5/2024 Monitoring Cultural Monitoring $0.00 4.00 125.000000 $500.00
9/8/2024 Monitoring Admin Fee $225.00 0.00 0.000000 $225.00
Invoice
Payment Terms: Net
BP Dune Palms LP
1129 Industrial Avenue Ste 205
Petaluma, CA 94952
$0.00
Agua Caliente Band of Cahuilla Indians
9/8/2024
Billing Address
30 Sales Tax:
5401 Dinah Shore Drive
Palm Springs, CA 92264
Phone 760.699.6800 Fax 760.699.6808
Service Address
Make Checks Payable to Agua Caliente Band of Cahuilla Indians
Contract 03-003-2023-001
Total: $1,725.00
If you would like your invoice by email, let us know at accounting@aguacaliente.net
BP Dune Palms LP
Highway 111 & Dune Palms Mixed Use Dev
79520 & 79580 Hwy 111
La Quinta, CA
If you have any questions concerning this invoice, please contact Accounting at accounting@aguacaliente.net
5492
Days
46
Charge Date Charge Code Description Fixed Charge Quantity Unit Price Amount Sales
Ta x
9/9/2024 Monitoring Cultural Monitoring $0.00 6.50 125.000000 $812.50
9/10/2024 Monitoring Cultural Monitoring $0.00 7.50 125.000000 $937.50
9/11/2024 Monitoring Cultural Monitoring $0.00 7.75 125.000000 $968.75
9/12/2024 Monitoring Cultural Monitoring $0.00 8.00 125.000000 $1,000.00
9/16/2024 Monitoring Cultural Monitoring $0.00 8.00 125.000000 $1,000.00
9/17/2024 Monitoring Cultural Monitoring $0.00 8.00 125.000000 $1,000.00
9/18/2024 Monitoring Cultural Monitoring $0.00 6.00 125.000000 $750.00
9/19/2024 Monitoring Cultural Monitoring $0.00 6.00 125.000000 $750.00
9/22/2024 Monitoring Admin Fee $1,082.81 0.00 0.000000 $1,082.81
Invoice
Payment Terms: Net
BP Dune Palm s LP
11 29 Industrial Avenue Ste 205
Petalum a, CA 94952
$0.00
Ag ua Caliente Band of Cahuilla Indians
9/22/2024
Billing Address
30 Sales Tax:
5401 Dinah Shore Drive
Palm Springs, CA 92264
Phone 760.699.6800 Fax 760.699.6808
Service Address
Make Checks Payable to Agua Caliente Band of Cahuilla Indians
Contract 03-003-2023-001
To tal:$8,301.56
If you would like your invoice by email, let us know at accounting@aguacaliente.net
BP Dune Palms LP
Highway 111 & Dune Palms Mixed Use Dev
79520 & 79580 Hwy 111
La Quinta, CA
If you have any questions concerning this invoice, please contact Accounting at accounting@aguacaliente.net
5513
Days
47
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