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Staff Report
City Council
Item No. 3.E
Meeting Date: June 8, 2022
From: John Corella, Director of Engineering/Public Works Title: Adopt a Resolution Accepting Public Improvements Completed for Conditional Use Permit CUP 20 -018 and
Releasing Certa in Improvement Securities: Amazon HUB
Center, at Southeast Corner of Date Palm Drive and Converse Road: AG Cathedral City Owners, LLC: Developer
City Council
RECOMMENDATION:
Adopt the resolution accepting the public improvements constructed for Conditi onal Use Permit CUP 20 -018, at the intersection of Date Palm Drive and Converse Road; authorizing the release of certain agreement securities described in the Resolution, and; authorize the Director of Engineering to file a Notice of Completion for the Project.
BACKGROUND:
Conditional Use Permit (CUP) No. CUP 20 -018 was approved by the Planning Commission on February 3, 2021, for the development of a commercial merchandise distribution hub at the southeast corner of Date Palm Drive and Converse Road. T he owner-developer is AG Cathedral City Owners, LLC, a Delaware limited liability company.
The conditions of approval for the use permit required the widening and improvement of the property’s Date Palm Drive and Converse Road frontages, with curb and gut ter, pavement, sidewalks, parkway improvements, driveways , a bus -turnout and the modification of the traffic signal at the intersection.
The developer executed an Improvement Agreement and posted improvement securities in the form of corporate surety bon ds, as authorized by the State Subdivision Map Act. The agreement and securities were posted to guarantee the completion of the public improvements in and around the new commercial center.
All the required improvements have been satisfactorily completed as required by the Improvement Agreement.
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DISCUSSION:
A Notice of Completion (NOC) has been prepared and will be filed by the Director of Engineering upon approval of the Resolution, noting that all the improvements have been completed. No claims have b een filed with the City against any of the posted securities. Pursuant to State law, the surety bond guaranteeing payment for labor and materials posted with the Improvement Agreement will be released by the Director of Engineering ninety (90) days after recordation of the Notice of Completion.
The developer has posted a one -year warranty bond to guarantee repair of any defects in materials or workmanship in the public improvements in the development. This warranty bond will be released by the Director o f Engineering one year after adoption of this Resolution provided no claims have been filed or problems arise due to issues with materials or workmanship.
The securities posted by the developer to be released in accordance with the terms of the Improvement Agreement and as outlined in the Resolution are as follows, and are all from Lexon Insurance Company:
o Conditional Use Permit CUP 20-018:
▪ For Faithful Performance: $185,000.00 Bond # LICX 1191464 ▪ For Labor and Materials: $92,500.00 Bond # LCIX 1191464 Staff is requesting that the City Council adopt the resolution accepting the public improvements constructed for Conditional Use Permit CUP 20 -018, at the intersection of Date Palm Drive and Converse Road; authorizing the release of certain agreement securities described in the Resolution ; and, authorize the Director of Engineering to file a Notice of Completion for the Project.
FISCAL IMPACT:
There will be minimal fiscal impact upon the City due to the adoption of this Resolution.
The public improv ements essentially replaced the older improvements, so there is no substantial increase in the maintenance cost for the City.
ATTACHMENTS:
CUP 20-018 Amazon Reso acceptance
CUP 20-018 Amazon Notice of Compl
vicinity sketch-Amazon Hub CUP 20-018