CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 CONSENT CALENDAR
SUBJECT: ACCEPTANCE OF PUBLIC IMPROVEMENTS AND AUTHORIZATION TO
RELEASE SUBDIVISION IMPROVEMENT SECURITIES FOR THE
“ÉLAN” TRACT, TRACT MAP 36914
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
On February 25, 2021, the City Council approved Tract Map 36914 and subdivision improvement agreement No. A8746 with Far West Industries, a California corporation, (Developer). The Developer has completed the required public improvements, and the City Council may accept these improvements as completed and complying with the City’s approved plans and authorize release of subdivision improvement securities.
RECOMMENDATION:
1) Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING ACCEPTANCE OF THE SUBDIVISION IMPROVEMENTS ASSOCIATED WITH TRACT MAP 36914
AND AUTHORIZING RELEASE OF SECURITIES REQUIRED BY THE
SUBDIVISION IMPROVEMENT AGREEMENT WITH FAR WEST INDUSTRIES, A CALIFORNIA CORPORATION, (A8746), FOR PROPERTY LOCATED AT 777 SOUTH PALM CANYON DRIVE, IN SECTION 22, TOWNSHIP 4 SOUTH, RANGE 4 EAST”.
BUSINESS PRINCIPAL DISCLOSURE:
A copy of the Public Integrity Disclosure Form for the Developer is included as Attachment A.
BACKGROUND:
The proposed project associated with Tract Map No. 36914 is a mixed single-family and multi-family residential development of 56 single-family and 25 multi-family residential
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Acceptance of Improvements for Tract Map 36914
units, in Section 22, Township 4 South, Range 4 East. A site map is provided as Figure 1 below. A Vicinity Map is included as Attachment B.
Figure 1 - TM 36914 “Élan” Tract Site Map
On February 25, 2021, the City Council approved a final map for Tentative Tract Map 36914 for the project; a copy of the final recorded map is included as Attachment C.
Associated with Tract Map 36914 was a requirement to construct certain public and private improvements, including:
On-site private street, private sewer, private storm drainage, and domestic water system improvements; and
Off-site public street, sewer, landscaping, and storm drain improvements.
At that time, construction of required on-site and off-site public improvements associated with Tract Map 36914, (the “Works of Improvement”), were not yet completed. In accordance with Section 66462 of the California Government Code, the Developer requested that the City enter into a Subdivision Improvement Agreement (SIA) securing the cost of the Works of Improvement not yet completed to the City’s satisfaction.
Accordingly, pursuant to the terms of the SIA, the Developer filed the following Security City Council Staff Report
August 26, 2026 -- Page 3
Acceptance of Improvements for Tract Map 36914
Instruments with the City Clerk to guarantee construction of the Works of Improvement:
$4,000,000. A copy of this original SIA is included as Attachment D.
The following Security Instruments by the Developer are presently filed with the City Clerk to guarantee construction of the Works of Improvement:
Faithful Performance Bond No. 36K000322; $4,000,000
Labor and Materials Bond No. 36K000322; $2,000,000 (Same bond as Faithful Performance bond, but separate bond paperwork for Labor and Materials in particular)
Monumentation Bond No. 36K000321; $18,000
In accordance with the SIA, a Maintenance and Warranty Bond, Bond No. 36K000322 for $600,000, has been received by the Engineering Services Department for filing with the City Clerk. Per Section 4.5(b) of the SIA, the Maintenance and Warranty Bond will be held for a warranty period of one (1) year following the date of final acceptance of the Works of Improvement, provided no claims are outstanding at that time regarding defective work.
STAFF ANALYSIS:
The Developer has completed construction of the Works of Improvement and has requested that the City Council accept the improvements and release the Security Instruments in accordance with the terms of the SIA. On behalf of the City Engineer, the City’s Public Works Inspectors have inspected the Works of Improvement and found them to be in accordance with the City’s approved plans & specifications and recommends the City Council accept the improvements and release the Security Instruments in accordance with the SIA.
ENVIRONMENTAL ASSESSMENT:
A Mitigated Negative Declaration (MND), which was previously adopted by the City Council on September 21, 2016, is the controlling environmental document for the project.
Pursuant to Section 15162 of the California Environmental Quality Act (CEQA) Guidelines, the preparation of a Subsequent MND, Addendum to the MND or further environmental documentation is not necessary because the changed circumstances of the project will not result in any new significant environmental effects or a substantial increase in the severity of previously identified significant effects. The request would not result in any new environmental impacts beyond those already assessed in the adopted Mitigated Negative Declaration.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development.
City Council Staff Report
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Acceptance of Improvements for Tract Map 36914
FISCAL IMPACT:
The Works of Improvement include both publicly maintained and privately maintained improvements. The public improvements to be accepted and subsequently maintained by the City include certain street and storm drain improvements. Sufficient funds are budgeted as part of the City’s annual fiscal year budget to accommodate maintenance of the improvements. Private improvements will be maintained by the Homeowners Association pursuant to the Covenants, Conditions and Restrictions (CC&Rs) recorded against the properties within Tract Map 36914.
REVIEWED BY:
Acting City Engineer: Francisco Jaime
Assistant City Manager: Flinn Fagg
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:
A. Public Integrity Disclosure Form
B. Vicinity Map
C. Recorded Final Tract Map
D. Subdivision Improvement Agreement
E. Resolution & Certificate of Acceptance