East of Madison LLC/Madison St & Median Improvement 16b -o03
MEMORANDUM
TO: Frank J. Spevacek, City Manager
FROM: Timothy R. Jonasson, P.E., Public Works Director / City Engineer
DATE: January 25, 2016
RE: Reimbursement Agreement for Street and Raised Median
Improvements Constructed by the Madison Club Development
Attached for your signature is the reimbursement agreement with East of Madison,
LLC for street and raised median improvements on Madison Street and street
improvements on Avenue 54 associated with the Madison Club development.
Please sign the attached agreement(s) and return it to the City Clerk for processing
and distribution.
Requesting department shall check and ottach the items below as appropriate:
Contract payments will be charged to account numbfq,
A Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) is attached with
no reportable interests in LQ or reportable interests
A Conflict of Interest Form 700 Statement of Economic Interests is not required because this Consultant does not
meet the definition in FPPC regulation 18701(2).
Authority to execute this agreement is based upon:
Approved by the City Council on Januar, 20
City Manager's signature authority provided under Resolution No, 2015-045 for budgeted expenditures of
$50,000 or less
Initial to certify that 3 written informal bids or proposals were received and considered in selection
The following required documents are attached to the agreement:
N/A Insurance certificates as required by the agreement (initioled by Risk Manager on
N/A Performance bonds as required by the agreement (originals)
X City of La Quinta Business License (copy or note number & expiration date here LIC- 0101509 exp on 3/31/2016)
N/A Purchase Order number
CITY OF LA QUINTA
REIMBURSEMENT AGREEMENT
TRACT MAP No. 33076-1
STREET AND RAISED MEDIAN IMPROVEMENTS TO MADISON STREET
(AVENUE 52 TO AVENUE 54)
AND
STREET IMPROVEMENTS TO AVENUE 54
(MADISON STREET TO MONROE STREET)
THIS REIMBURSEMENT AGREEMENT (the "Agreement") is made and entered into this
day of , 20 , by and between East of Madison, LLC,
a Delaware limited liability companies, hereinafter referred to as "Developer," and the City of
La Quinta, California, a California Municipal Corporation and charter city (the "City").
RECITALS
A. Developer is the subdivider and developer of property in the City of La Quinta subject to
the provisions of Tract 33076-1 ("Tract") which area is currently known as the Madison
Club and which is located south of Avenue 52 and north of Avenue 54 between
Madison Street and Monroe Street.
B. The Conditions of Approval for Tract 33076 obligate Developer to construct certain
improvements on Madison Street and Avenue 54, generally described as follows, and
more specifically described in the Conditions of Approval, #52, A 1) & A 4) as follows:
1) Madison Street (Primary Arterial, Option A; 110' R/W): Widen the east side of the
street along all frontage adjacent to the Tentative Map boundary to its ultimate width on
the east side as specified in the General Plan and the requirements of these conditions,
and 4) Avenue 54 (Secondary Arterial with Class II Bike Lane, 96' R/W): Widen the
north side of the street along all frontages adjacent to the Tentative Map boundary to
its ultimate width on the north side as specified in the General Plan and the
requirements of these conditions. Rehabilitate and/or reconstruct existing roadway
pavement as necessary to augment and convert it from a rural county -road design
standard to La Quinta's urban arterial design standard. The aforementioned
improvements are herein referred to as (the "Required Improvements") and as shown on
Exhibit A.
C. The City has identified source of funds from which it desires to reimburse Developer for
the Required Improvements at a point in the future to be determined by the City. The
time and form of reimbursement payments shall be as set forth in the Agreement. The
funds source is the Transportation Component of the Development Impact Fee. All land
developments in the City are required to pay Development Impact Fees ("Fees")
pursuant to the Development Impact Fee Program ("Program"), adopted by the City on
June 15, 1999 and revised October 7, 2008. A portion of Development Impact Fee
known as the "Transportation Component" provides future funding for specific arterial
street improvements located throughout the City (Exhibit B).
Reimbursement Agreement - DIF Agreemt Madison Club Madison St & Ave 54 (No Median Landscaping) - 33076 Page 1 of 8
D. The Transportation Component of the 2008 DIF Program contains cost details for
Madison Street (Avenue 52 to Avenue 54) and Avenue 54 (Madison Street to Monroe
Street). The cost details (Exhibit C) reflect a DIF totaling $2,214,723 for Madison
Street (Avenue 52 to Avenue 54) and a DIF totaling $1,048,021 for Avenue 54
(Madison Street to Monroe Street). The ultimate Required Improvements are estimated
to be $976,265.50 for Madison Street excluding the median landscape and irrigation
(Avenue 52toAvenue 54)and 5[)%ofthe total available DIF budget nf$1,O48,D21 or
$524,010 for Avenue 54 (Madison Street to Monroe Street).
E. The City Engineer has reviewed the scope and cost associated with the Required
Improvements and has determined that the Required Improvements are covered by the
Program and are eligible for certain reimbursements, subject to certain limitations and
avaHability of funds discussed herein.
F. The parties hereto desire to enter into this Agreement to effectuate the terms of the
City's reimbursement to Developer of certain costs incurred by Developer in
constructing the Required Improvements to the extent they are determined to be eligible
for reimbursement and to the extent the City has the funds available in the
Transportation Component of the DIF Program.
AGREEMENT
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
Responsibilities of Develqper. Developer has constructed the Required Improvements as
described in Section B of the Recital above, excluding the median landscape and irrigation
on Madison Street, hereto and incorporated herein by this reference. Developer has
borne the cost of constructing the Required Improvements excluding the median
landscape and irrigation on Madison Street. The Developer has submitted 10 the City
invoices and supporting documentation for those eligible costs per Exhibit A, which total
$S70,2G5.5Ofor Madison Street and $524,01Ofor Avenue 54.
2. Responsibilities of City,
(a) Approval or Disapproval of Expenses. The City Engineer has approved the
submitted invoices. Developer recognizes that the City Engineer's approval of the costs
does not guarantee that the costs will be reimbursed. Instead, the City Engineer approval
is a condition precedent necessary for the costs to be processed for credit or
reimbursement.
(b) Reimbursement from the City's Future Transportation Component Fees. Developer
is eligible for credit and/or reimbursement at some point in the future from the
Transportation Component Fees collected on other p'eoto. Developer recognizes that at
this point in time, the City cannot commit to a time certain for reimbursement, in as
much as the City is entitled to establish the priority of spending for the Transportation
Component Fees. Developer further recognizes that the City Council may consider a
policy regarding the priority of reimbursement, and that if adopted, the timing of its
reimbursement will be subject to the policy. In no event will the amount of
Reirriburt.'innwit Agreernerit - Agreennt Madison Clut) Lindison St St Ave 54 (No Median Landscaping)oavo Page zm«
reimbursement (including credit) exceed $976,265.50 for Madison Street excluding the
median Iandscape and irrigation and $524,O1Ofor Avenue 54.
3. DisLwtP.S. In the event of any dispute arising under this Agreement, the ijured party shall
notify the injuring party of its contentions by submitting a claim therefore. The injured
partyohaUoontinumpe/forrningiteob|igmtionoinnunmdhanainoo|onQaothei juring 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 agreed upon by both parties to this Agreement.
4. Attorney's Fees. If either party commences an action against the other arising out of or
in connection with this Agreement, including the filing of a lien or other legal action to
compel payment of the Reimbursement, the prevailing party shall be entitled to recover
reasonable attorney's fees and legal costs from the losing party.
5. Indemnification. Developer shall defend, indemnify and hold harmless City, its officers,
employees, representatives and agents ("Indemnified Partieo^),frorn and against those
actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal
costs and attorneys' fees, arising out of any Iiability or claim for liability, for ijury to or
death of person(s), for damage to property (including property owned by City) and for
errors and omissions committed by Developer, its officers, employees representatives,
and agents, which arise out of acts or activities of Developer's or Developer's Officers,
employees, agents or representatives ("Claims"), whether or not such act or activity is
authorized by this Agreement, except to the extent of such loss as may be caused by
City's own negligence or that of its officers or employees. In the event the lndemnified
Parties 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 Indemnified Parties,
or at the City's option, reimburse the Indemnified Parties their costs of defense, including
reasonable attorneys' fees, incurred in defense of such Claims. In addition, Developer
shall be obligated to promptly pay any final judgment or portion thereof rendered against
the Indemnified Parities.
6. Cjy Officers and Employees; Non-Discrirnination. No officer or employee of City shati 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.
7. Term nf/\onemnnmn1. This Agreement shall remain in full force and in effect until each
party has fully performed its obligations and all required reimbursements have been
issued.
8. 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.
RairnbumemergAvm^me , DIF ^;eem.Madison Clot) Madison m& Ave 54 M°mo",mm,o"pmw 3307F) Page amo
To City:
To Developer:
City of La Quinta
78-495Calle Tampico
La Quinta, CA 92253
Attn: City Engineer
(760) 777-7075
East of Madison, LLC
P.O. Box 1482
La Quinta, California 92247
Attn: Scott Birdwell
(310) 880-1202
9. Ass[gnment of Ag!eement. Neither Party may assign its obligations hereunder to any
assignee without the knowledge and without written consent of the other party hereto
which other party shall not unreasonably withhold consent. Assignment may be made
only to an assignee willingly, financially capable, and competent to carry out the
assignor's obligation.
10. Ganmns|-Proviniono'
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. This Agreement may be executed in counterparts, which when taken together, shall
constitute one fully executed document.
11. Severability. 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.
12. Authority of Signatories. 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.
*
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Reimbursement Agreement o/rfkgre°~,Madison Club IVIadisv"uayn4/m»Median m"m*°pinm0 onors Page 4mn
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first written above.
C TY OF LA QUINTA:
Digitally signed by Frank J. Spevacek
DN: serialNumber=1n615nh01202cvmj,
c=US, st=California, I=La Quinta,
o=Frank J. Spevacek, cn=Frank J.
Spevacek
Date: 2016.01.26 15:32:11 -0800'
Frank J. Spevacek, City Manager
Date
ATTEST
/
1.7
Digitally signed by Susan Maysels
DN: serialNumber=j4r7111g1ppsr45f,
c=US, st=California, l=La Quinta,
o=Susan Maysels, cn=Susan Maysels
Date: 2016.01.26 17:02:06 -0800'
Susan Maysels, City Clerk
City of La Quinta
Developer: East of Madison, LLC
P.O. Box 1482
La Quinta, CaIiforiCalifornia 92247
By:
/
Date
Title: Authorized Representative
By:
Title:
Date
Approved as to Form:
WILLIAM H. IHRKE, City Attorney
City of La Quinta
Reimbursement Agreement —DIF Agreemt Madison Club Madison St Ave 54 (No Median Landscaping) - ?3076 Page 5 of 3
CALIFORNIA, ALL-PURPOSE
Anotary public orother officer completing this certificahe
verifies only the identity ofthe individual who signed the
document iowhich tbisoertihcateisattached, and not the
truthfulness, accuracy, or validity mfthat document.
STATE OF err% (Dr
)SS
COUNTY OF _\ ns
On .x'mc, ��1L`^-�a°^ e)Sd� ,NniaryPub|i� personally appeared
» '
'�
who y��]� /`` me.the basis of satisfactory evidence to he the person whose name issubscribed to the within instrument and
acknowledged to methat heexecuted the same in hisauthnhzed capacity, and that by his signature on the instrument the person,
or the entity upon behalf of which the person(s) acted, executed the instrument,
CKNOWLEDGEMENT
I certify under PENALTY OF PERJURY under the laws of the State of California that the fotego!n pararaph s true and correct
WITNESS my hand and official seal.
Sigm
(
WHITNEY A[NsVNKLAN
COMM. #1083071 z
�
NotaryPublic
California
This area for official notarial seal.
�
Exhibit A
REQUIRED IMPROVEMENTS -TRACT No. 33076 - 1
DIF ELIGIBLE REIMBURSE ENT
Description
1 Madison Street - Street (One
Inside Lane, East Side) and
Raised Median Improvements
from Avenue 52 to Avenue 54
- Required Off -Site Street
Improvements Eligible for
Reimbursements From
Development Impact Fee Fund
2 Half Width Paved, Painted
Median, One Westbound Lane
(Inside Lane), and Adjustment
of the Centerline Profile to
Implement Urban Drainage
Concepts for Future Widening
of the North and South side
Between Madison St. to
Monroe Street (North Side)
- Required Off -Site Street
Improvements Eligible for
Reimbursements From
Development Impact Fee Fund
Unita Unit Cost
L.S. $976,265.50
L.S. $524,010
Quantity Total Cost
1 $976,205.50
1 $524,010
(not to exceed)
Developer has submitted invoices and supporting documentation for eligible costs for the
Required Improvements described above which total $976,205.50 for Madison Street
(excluding the median landscape and irrigation) and $524,010 for Avenue 54.
nmmburs°rNintAgreement -DIF ^greemtMadison Club Madison StuAve 54 Imumedian Landscaping/ 33076
Exhibit B
October 7, 2008 DIF Fee by Development Category
Reimbursement Agreement -DIF Agreemt Madison Club Madison St & Ave 54 (No Median Landscaping) - 33076 Page 1 of 8
City of La Quinta —Development Impact Fee Study
F. SUM RY OF IMPACT FEES
Table S-1 su arizes the
The ounts shown in
ended impa
le based on the
- •
4
ees by development category and facility type.
ysis in subsequent sections of this report.
A initY. ..
.. . .
.1)c.velOp.-- . . Civic ' _Vire'
. .. _ .
Ain -irks
. ..
' :Maint.. . Maint. l'iAal.
. J Street . ._Pm1:._ .
..atiO.ii
„ .
I it -Units Ceiitcr' otection 1 *_
Res (SPD)
I DU 2" $104 $158
'-'
$3.592 51,773 51,089 5612 $334 $51 7,713
, .
Res (SFA) DU $3,592 __., $1.773 S182 $102 $334 $104 $158 $51 S6.296
Res (MFO) 4 DU . $2,098 S1.773 $280 SI57$334 S104 S92 S51 S4.889
9iliccitiosp. KSF S6.931 S135 S76
S7.451
)
General Cow KSF S5,648 $639 $360 S252 S6.899
Tourist Com Room S1.826 $107 $81 $2,204
Golf Courses Acrc S668 $158 S89 $30 $945
G. PROJECTED RE
Table S-2 shows projected total revenue from impact fees, from now to build out, assuming that
the fees are adopted as recommended and . all development anticipated in this cport actually
occurs. Note that projected revenue is given in current dollars.
Fac'
Transporml.
Table S-2
Pr9,jee1fd I ni met Fee Revenue
r Projeteil Revenue
$55,901,770
$19,001,102
$1091262
!,6,136.,(341
$3,579,595
Si,110.102
3,5V,565
$100,194457
P
Civic Center
Fire Station
Lib 'es
Cr Centers
Street and Park Maim
TOTAL
I Reside - Single Family Detached
2 Dwelling Unit
Residential- Single Family Attached
4 Residential —Multi family and other
5
1,000 Square Feet of Gross I3uilding
6 Project Revenue in current doll
September 16, 2008
Page 4
Exhibit C
October 7, 2008 DIF Cost Detail
Madison Street (Avenue 52 to Avenue 54)
AND
Avenue 54 (Madison Street to Monroe Street)
Reimigursornem Agreememr AgreerM Madison Cluti Madison St & Ave 54 Ma Median Lrvidsc,aping) - 3307e- R,9.3 3 of
CITY OF LA QUINTA: DEVELOPMENT JMPACT FEE (DIF) COST DETAIL
Project Type: Secondary Arterial
Avenue 54 (Madison Street to Monroe Street
Description
The proposed improvements include the installation of paved, painted median and the adjustment of the
centerline profile to implement urban drainage concept for future widening of the north and south sides between
Madison St. and Monroe St.
ITEM
DESCRIPTION UNITS QUANTITY UNIT ELIGIBLE
COST DIF COST
------ OBILIZATI7�4F�*� ----------L'--_G � ------ .1�.89 $67,492 $61,357.188
DUSTONTROL
$61,357
- Y --
LG 1J5
----'-- ----- ---- ---
UNCLASSIFIED FILL
2400 $14.00 $33,600.00
UNCLASSIFIED CY 2400 $14.00 $33600.00
6 4.5" AC OVER 8"AB SF 126720 .75 475,200.00
7 ADJUST EA17 �750.00 $12.759l0
SIGNINGANOGT� L� 1 ���
UR-'------- ---'---------
421.82
��-
Desi.9n: $747242:10
'2,ity Admin: $37,121.09
C'orifinvne 136,698,4-i
al Estimate: 1,048,021.2
6/19/2008
Estimated Soft Costs:
Notes:
1. This pject has a pending Developer Reimbursement Agreement (DRA) with the Madison Club in the arnount
of $400,000 for half of the paved painted median improvements, from Madison to Monroe'. The improvements
have not been constructed as of May 08.
2. This project has a pending Developer Rembursement Agreement (DRA) with Griffin Ranch in the amount of
$400,000 for half of the paved painted median improvements, from Madison to Monroe. The improvements have
not been constructed as of May 08.
Appendix 1 (8 of 19)
CITY OF LA QUINTA DEVELOPMENT IMPACT FEE (DIF) COST DETAIL
Project Type: Primary Arterial
Project: Madison Street (Avenue 52 to Avenue 54)
_ .
Description
The proposed improvements include the installation of two lanes, median curb, and median landscape, Irrigation and lighting
between Avenue 52 and Avenue 54 on Madison Street.
ITEM DESCRIPTION
MOBILIZATION
TRAFFIC CONTROL
DUST- CONTROL
UNITS
UNIT ELIGIBLE
QUANTITY COST 1 DIF COST
UNCLASSIFIED EXCAVATION
GRADING
CLEARING AND GRUBBING
7 WET UTILITY GRADE ADJ.
8 8" MEDIAN CURB
9 4.5" AC OVER 6" AEI
10 SIGNING AND STRIPING
11 LANDSCAPE
12 IRRIGATION
LS
LS
LS
LS
LS
AC
LS
LF
1
1 35,000.00
1 72,000.00
78,062.50
102,109.33
2,777.78
50,370.00
13 ELECTRICAL
6/19/2008
SUB -TOTAL
10.45 $
2.56
$ 20,000.00
35,000.00
72,000.00
78,062.50
102.109.33
19,130.72
50,370.00
78,375.00
450,976.00
20.000.00
7.455.00
Estimated Soft Costs:
1.34_ 120,675.00
168.000.00 168,000.00
1.512.153.55
Design:
InsEE_ctc.-tion/Testing/Sury_9x' 72,407.63
City Admin: Fs 82,332.00 ,
Contingency: 302,430.71
Toial EIUmitf$ 2.214,723.8
245.400.061
Notes:
1. This project has a pending Developer Reimbursement Agreement (DRA) with the Madison Club in the amount of
$2,030,887 for two travel lanes, median curb, and median landscape improvements, from Avenue 52 to Avenue 54. The
improvements have been constructed.
Appendix 1 (15 of 19)