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HomeMy WebLinkAboutResolution - Reso 2024-03 - 01/10/2024 RESOLUTION NO. 2024-03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY CERTIFYING COMPLETION OF CERTAIN PUBLIC IMPROVEMENTS IN TRACT NO. 28639-1 AND TRACT NO. 32858 BY HPH HOMEBUILDERS 2000, L.P., PER IMPROVEMENT AGREEMENT DATED JULY 12, 2019, AND AMENDMENT NO. 2 THERETO, DATED OCTOBER 28, 2020, AND RELEASING SUBDIVISION SECURITIES WHEREAS, Tract No. 28639-1, a 261 residential lot subdivision was recorded in 2001, and Tract No. 32559, a re-subdivision of a portion of Tract No. 28639-1, for 70 residential lots, was recorded in 2005, but neither subdivision was fully developed, and their original subdividers did not complete all the required public improvements; and WHEREAS, HPH Homebuilders 2000, L.P., a subsidiary of D. R. Horton, ("Developer") purchased certain vacant lots in both subdivisions for the purpose of constructing and selling single family homes; and WHEREAS, as a condition of the issuance of building permits and final inspections of the homes, Developer executed an Improvement Agreement, dated July 12, 2019, and subsequently executed Amendment No. 1 thereto, dated January 15, 2020, with the City in which Developer agreed to construct and complete the streets, curbs, gutters, utilities, and other infrastructure in the areas of the lots being developed by Developer; and WHEREAS, the provisions of the Subdivision Improvement Agreement provided that in the event of Developer's acquisition of additional lots in adjoining subdivisions, the obligations to construct the public improvements for such additional lots could be added to the original Subdivision Improvement Agreement by an Amendment thereto; and WHEREAS, Developer subsequently acquired all of the lots in adjoining Tract No. 32858, and by the execution of Amendment No. 2 to the Improvement Agreement, accepted the obligations to improve and construct all public improvements in Tract No. 32858 and to post required improvement securities therefor; and WHEREAS, pursuant to the July 12, 2019, Improvement Agreement and Amendment No. 2 thereto, dated October 28, 2020, Developer posted certain securities, as listed below, to guarantee faithful performance of the public improvements in Tract No. 32858, to guarantee payment for labor and materials, and to guarantee placement of survey monuments and property corners in accordance with the recorded tract map: For faithful performance: Surety bond No. 016229791, for $1,031,500. For labor and materials: Surety Bond No. 016229791, for $515,750. For monuments and property corners: Cash Deposit of$12,000, paid October 21, 2020 (Surety bonds are from Liberty Mutual Insurance Company). AND WHEREAS, in accordance with the terms of the July 2, 2019, Improvement Agreement and Amendment No. 2, Developer has posted a good and sufficient Warranty Bond in the amount of $103,150, to guarantee the public improvements in said tract constructed by Developer against any defects in materials and workmanship; and WHEREAS, the Director of Public Works has determined that Developer has competed all the public improvements required in accordance with the terms of the Improvement Agreement and Amendment No. 2, and has further determined that the above securities may now be released in accordance with the terms of the Improvement Agreement ad Amendment No. 2, with the exception of the labor and materials bonds and the warranty bond; and WHEREAS, the public improvements constructed and completed by Developer in Tract No. 32858 per the July 12, 2019, Improvement Agreement and Amendment No. 2 include the construction or improvement of all or portions of the following public streets, alleys, and lots: In Tract No. 32858: Rio Vera Cruz Rio Guadalupe Rio Felicia Rio Madre Alley Lots E, F and G Park Lot H Park Lot 288 in Tract 28639-1 Together with all sewers, water mains, utilities, sidewalks, curbs, gutters, paving, lighting, landscaping, and other improvements appurtenant thereto; and: WHEREAS, the Director of Public Works has received written confirmation from the licensed surveyor of record that the final monuments have been set and that the surveyor was compensated for same. NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE CITY OF CATHEDRAL CITY, AS FOLLOWS: Section 1; Acceptance of Public Improvements That pursuant to Section 5 of the Improvement Agreement, the City hereby certifies that the above listed streets, alleys and lots have been constructed and completed in accordance with City standards and specifications and that the specified portions of public streets listed above, excluding the listed alley lots and park lots, are accepted into the City maintained street system. Section 2. Notice of Completion That the Director of Public Works is hereby authorized to prepare and file a Notice of Completion in accordance with the California Civil Code upon adoption of this Resolution. Section 3. Disposition of Improvement Securities A. That the above-described Warranty Bond, in the amount of $103,150, covering the approved work, as required by Section 2 (a)(iii) of the Improvement Agreement shall be retained for a period of one year from the date of adoption of this Resolution in accordance with Section 9 of the Improvement Agreement. The Director of Public Works is hereby authorized to release said Warranty Bond following the expiration of the one-year warranty period, so long as any necessary warranty repairs have been completed to the satisfaction of the Director of Public Works. B. That the improvement securities posted by the Subdivider in accordance with the Improvement Agreement and Amendment No. 2 for Faithful Performance and the cash deposits posted for final Monuments are hereby ordered released. C. That the improvement securities posted by the Developer in accordance with the Improvement Agreement and Amendment No. 2 for Labor and Materials shall be held for a period of ninety (90) days from the date of recordation of the Notice of Completion in the above Section 2 in accordance with Section 5(a) of the Improvement Agreement and Section 66499.7(h) of the Government Code (Subdivision Map Act). The Director of Public Works is hereby authorized to release said security following the expiration of the ninety (90) day period, so long as no claims have been filed against the security. Section 4. Effective Date That this Resolution shall take effect upon its adoption. Section 5. Certification That the City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions of said City; and shall cause a certified copy of the Resolution to be recorded in Official Records by the Riverside County Recorder. PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council for the City of Cathedral City held on this 10th day of January, 2024 by the following vote: Ayes: Councilmembers Lamb, Gutierrez and Gregory; Mayor Pro Tem Ross Noes: None Absent: Mayor Carnevale Abstain: None7) 3 (-0U-12-- Mark arnevale, Mayor City of Cathedral City, California ATTEST: Air-uc,Pd1LthinkatJLtic Tracey R. ermosillo, CMC City Clerk APPROVED S FORM: Eric S. Vail, City Attorney