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AGENDA ITEM INFORMATION SUMMARY
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GENERAL INFORMATION:
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INFORMATIONAL DATA FORWARDED TO CITY DEPARTMENTS/COUNCil OFFICES:
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COMMENTS/CONCERNS: Include pertinent comments and concerns 01 olllces and persons clearing the
summary, such as controversial Issues, time constraints and funding complications. Indicate dates when
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Redevelopment Agency · City of San Bernardino
300 Nanh "0" S_ Founh Floor ' S... Bemonlino, California \12418
(714) 384-5081 FAX (714) 888-9413
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APRIL 5, 1990
FINANCIAL SERVICES OF H<>OD-HUSING AND ASSOCIATES
Synopsis of Previous Commission/Council/Committee Action:
04-02-90 The Commission received and filed the first Financial Services
Agreement.
Recommended Motion:
(COMMUNITY DEVELOPMENT COMMISSION)
That the Commission recleve and file the Second Financial Services
Agreement with Hood-Huslng Associates.
Respectfully Submitted,
-
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Rober J. mple, Ac ing
Executive Director
Supporting data attached: YES
FUNDING REQUIREMENTS: $15,000
Hard: ALL
Project: ALL
Commission Notes:
RT:1995R
Agenda of: April 9. 1990
Item No.
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Redevelopment Agency
S T A F F R E P 0 R T
A second proposal has been received from the firm of Hood-Huslng and
Associates to assist the Agency with financial services.
The firm's first agreement was to assist with the maximization of yields the
Agency can earn on Its Investment portfolio and maximize the leverage which
that portfolio gives the Agency In obtaining loanable funds from the banking
community'. Initially, the firm of Hood-Husing and Associates assisted in the
negotiation of a loan to the Agency to, in turn, be loaned to H.A.B.
Development for the construction of off-site Improvements located south of
Interstate 215 between Cable Creek and the Devil 's Canyon flood control
channel, and Wood-Huslng and Associates assisted In negotiating a maximum line
of credit for use on similar future projects. Also, HoOd-Huslng undertook a
review of the cost, risk and rate of return from alternate Investment
strategies available consistent with the Agency's existing Investment
policies. The first agreement was for a sum not to exceed $15,000, to be
billed at the rate of $125 per hour, plus reasonable expenses Incurred by the
firm.
The second proposal is for Hood-Husing and Associates to meet with
representative from the Agency, Community Development and Dukes-Dukes and
Associates to attempt to design a development and financing agreement
concerning the development of ll4 homes (Orangewood Estates) and to ensure
that the 20% set aside funds are used to maximum efficiency. Also,
Hood-Husing and Associates is to assist the Agency and the developer of the
Hestslde Shopping Center to secure an anchor tenant.
Currently, in the Agency's 1989-90 Budget, there Is an approved line Item
(#6600) for financial planning services in the amount of $30,000.
AGREEMENT FOR PROFESSIONAL SERVICES
Agreement No.
THIS AGREEMENT made and entered into this day of ,
1990, by and between the COMMUNITY DEVELOPMENT COMMISSION OF TBE CITY OF
SAN BERNARDINO, on behalf of the REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO, a public agency, ("Agency"), and WOOD-BUSING AND ASSOCIATES
("Consultant"):
RECITAL
1. Purpose
The purpose of this Agreement is to allow the Agency to procure the
service of an experienced professional firm to assist the
Redevelopment Agency with financial services.
TERMS AND CONDITIONS
2. Mission
Agency hereby retains Consultant for the provision of services
described in Attachment I. Consultant hereby accepts such
responsibility as described herein,
3. Terms
This Agreement shall commence as of the day and year first above
shown and shall remain in full force and effect until the services
described in Attachment I have been completed. The Executive
Director of the Agency or his or her designee is authorized to
expand the work assignments of the Consultant ss long as the
approved amount of $15,000 has not been exceeded,
4. Consultant Responsibilities
Upon the request of Agency's Executive Director or his or her
designee, Consultant shall complete the work program described in
Attachment I. Consultant commits the principal personnel listed
below to the project for its duration:
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Page 2
John E. Busing
Gene Wood
5. Replacement of Named Personnel
It has been determined that the individua1(s) named in this
Agreement are necessary for the successful performance of this
Agreement. No diversion or replacement of these individual(s) shall
be made by Consultant without written consent of the Agency. The
Agency may ratify, in writing, within ten (10) days of said
diversion or replacement and such ratification shall constitute the
consent of Agency required by this clause. If Agency fails to
respond to Consultant within ten (10) days of notification by
Consultant, said personnel diversion or replacement shall be deemed
approved.
6. Release of News Information
No news release, including photographs, public announcements or
confirmation of same, of any part of the subject matter of this
Agreement or any phase of any program hereunder shall be made
without prior written approval of Agency's Executive Director or his
or her designee.
7. Confidentiality of Reports
Consultant shall keep confidential all reports, information and data
received, prepared or assembled pursuant to performance hereunder
and that Agency designates as confidential. Such information shall
not be made available to any person, firm, corporation or entity
without the prior written consent of Agency,
8. Compensation
During the term of this Agreement, Agency shall pay Consultant, on a
hourly basis in accordance with the schedule described in Attachment
I. Said compensation shall be considered full and complete
reimbursement for all of Consultant's costs associated with the
services provided hereunder. The maximum compensation for services,
including all Consultant's costs, under the terms of this Agreement,
shall not exceed $15,000.
Consultant shall be paid in accordance with Agency's standard
accounts payable system. Invoices submitted by the Consultant shall
be detailed as to the nature of the work performed and the hours
expended on such work, and all reasonable expenses incurred by the
Consultant shall be documented. Invoices shall be approved by
Agency's Executive Director or his or her designee.
The Agency will compensate the Consultant at the rate of $125.00 per
hour, plus documented reasonable and normal expenses.
Page 3
9. Right to Audit
Agency or any of its duly authorized representatives shall have
access to any books, documents, papers snd records of Consultant
and/or its subcontractors which are pertinent to the specific
progra~ hereunder for the purpose of making an audit, an
examination, excerpts and transcriptions. All books, records and
supporting detail shall be retained for a period of five (5) years
after the expiration of the term of this Agreement, or any extension
thereof, or for any longer period of time as required. by law.
10. Audit Exceptions
Consultant agrees that in the event the program established
hereunder is subjected to audit exceptions by appropriate audit
agencies, it shall be responsible for complying with such exceptions
and paying Agency the full amount of liability resulting from such
audit exceptions.
11. Agency Support
Agency shall provide Consultant with any plans, publications,
reports, statistics, records or other data or information pertinent
to the services to be provided hereunder which are reasonably
available to Agency.
12, Independent Contractor
Consultant shall perform the services as contained herein as an
independent contractor and shall not be considered an employee of
Agency or under Agency supervision or control. This Agreement is by
and between Consultant and Agency, and is not intended, and shall
not be construed, to create the relationship of agent, servant,
employee, psrtnership, joint venture, or association, between Agency
and Consultant.
13. Conflict of Interest
Consultant represents, warrants and agrees that it does not
presently have, nor will it acquire during the term of this
Agreement, any interest direct or indirect, by contract, employment
or otherwise, or as a partner, joint venturer or shareholder (other
than as a shareholder holding a one percent (1%) or less interest in
publicly traded companies) or affiliate with any business or
business entity that has entered into any contract, subcontract or
arrangement with Agency. Upon execution of this Agreement and
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Page 4
during its term, as appropriate, Consultant shall upon written
request, disclose in writing to Agency any other contractual or
employment arrangement from which it receives compensation.
Consultant agrees not to accept any employment during the term of
this Agreement by any other person, business or corporation which
employment will or may likely develop a conflict of interest between
Agency's interests and the interests of third parties.
14. Successor and Asaignment
The services as contained herein are to be rendered by Consultant
whose name is as appears first above written and said Conau1tant
shall not assign nor transfer any interest in this Agreement without
the prior written consent of Agency.
15. Indemnification
Consultant agrees to indemnify, defend (upon requeat by Agency) and
save harmless Agency, its agents, officers and employees from and
against any and all liability, expense, including defense costs and
legal fees, and claims for damages of any nature whatsoever,
including, but not limited to, bodily injury, death, personal injury
or property damage arising from or connected with Consultant's
negligent operations, or its services hereunder, including any
workers' compensation suit, liability or expense, arising from or
connected with the services performed by or on behalf of Consultant
by any person pursuant to this Agreement.
16. Insurance
Without limiting Consultant's indemnification of Agency, Consultant
shall provide and maintain at its own expense during the term of
this Agreement the following program(s) of insurance covering its
operation hereunder. Such insurance shall be provided by insurer(s)
satisfactory to Agency and evidence of such programs satisfactory to
Agency shall be delivered to the Executive Director of Agency or his
or her designee within ten (10) days of the effective date of this
Agreement.
General Liability: A program including, but not limited to,
comprehensive general liability including automobile coverage
with a combined single limit of not less than $500,000.00 per
occurrence. Such insurance shall name Agency and the City of
San Bernardino as additionally insured.
Workers' Compensation: A program including workers'
compensation insurance, where necessary, with statutory limits.
....
Page 5
Failure on the part of Consultant to procure or maintain required
insurance shall constitute a material breach of this Agreement upon
which Agency may immediately terminate this Agreement.
17. Compliance with Laws
The parties agree to be bound by applicable federal, state and local
laws, regulations and directives as they pertain to the performance
of this Agreement,
18. Non-Discrimination
In the fulfillment of the program established under this Agreement,
either as to employment, upgrading, demotion, transfer, recruitment
or recruitment advertising, layoff or termination, rates of payor
other terms of compensation, selection for training, including
apprenticeship or participation in the program or the receiving of
any benefits under the program, Consultant agrees not to
discriminate nor to allow any subcontractor to discriminate on the
basis of race, color, creed, religion, natural origin, ancestry,
sex, marital status or physical handicap.
19. Severability
In the event that any provision herein contained is held to be
invalid, void or illegal by any court of competent jurisdiction, the
same shall be deemed severable from the remainder of this Agreement
and shall in no way affect, impair or invalidate any other provision
contained herein. If any such provision shall be deemed invalid due
to its scope or breadth, such provision shall be deemed valid to the
extent of the scope or breadth permitted by law.
20. Interpretation
No provision of this Agreement is to be interpreted for or against
either party because that party or that party's legal representative
drafted such provision, but this Agreement is to be construed as if
it were drafted by both parties hereto.
21. Entire Agreement
This Agreement supersedes any and all other agreements, either oral
or in writing, between the parties hereto with respect to the
retention of Consultant by Agency and contains all the covenants and
agreements between the parties with respect to such retention.
Page 6
22. Waiver
No breach of any provision hereof can be waived unless in writing,
Waiver of anyone breach of any provision shall not be deemed to be
a waiver of any other breach of the same or any other provision
hereof.
23. Contract Evaluation and Review
The ongoing assessment and monitoring of this Agreement is the
responsibility of Agency's Executive Director or his or her designee.
24. Termination
This Agreement may be terminated by either party by giving written
notice at least five (5) days prior to the effective termination
date in the written notice.
25. Notice
Notices, herein shall be presented in person or by certified or
registered U. S. mail, as follows:
To Consultant:
Wood-Busing and Associates
1180 East Ninth Street, Suite A-6
San Bernardino, California 92410
To Agency:
Robert J. Temple, Executive Director
Redevelopment Agency of the City of
San Bernardino
300 North "0" Street, Fourth Floor
San Bernardino, California 92418
Nothing in this paragraph shall be construed to prevent the giving
of notice by personal service.
26. Entire Agreement
This Agreement with attachments constitutes the entire understanding
and agreement of the parties.
II
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the day and year first above shown.
COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO, on behalf
of the REDEVELOPMENT AGENCY OF TBE
CITY OF SAN BERNARDINO
By:
Title:
Approved as to form and
legal content:
BY:~_'
/ Agen Counsel
Approved as to program:
REDEVELOPMENT AGENCY OF TBE
CITY OF SAN BERNARDINO
By: ;(, C C> "," j/:,'c ~, 'it'
-/' Division Manager
1241A
wmD'
HUSING
& ASSOCIATES
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April 2, 1990
Mr. Robert Temple, Acting Executive Director
San Bernardino Redevelopment Agency
300 North "0" Street
San Bernardino, CA 92418
Dear Bob:
FOllowing conversations between my partner Gene Wood,
Mayor Holcomb and yourself, you have advised us that you
would like Wood-Husing to assist the Redevelopment Agency
("RDA") with two new projects.
First, the City and RDA have found it in their interest
to encourage the development of affordable housing in the
community. In accordance with this policy the Mayor and
Common Council have tentatively agreed to have the firm
of Dukes-Dukes and Associates, Inc. develop 114 homes on
city and developer owned property.
You have requested that we meet with representatives of
the RDA, the Community Development Block Grant Agency
("CDBG"), and Dukes-Dukes in the attempt to design a
development and financing agreement that works for the
City, the RDA and Dukes-Dukes. You have indicated that
any agreement is to insure that RDA's 20% set aside funds
are used to maximum efficiency in creating affordable
housing, while generating acceptable yields to the agency
at risk levels compatible wi th sound financial practices.
Second, the City and ROA have worked very hard to develop
a Shopping center on the Wests ide of San Bernardino at
Baseline and Medical Center Drive. Having chosen a
developer for the project you are now desirous of assisting
that developer in acquiring a major food chain store to
anchor it.
As Wood-Husing has had dealings with such stores in the
past you have requested that we assist RDA and the developer
in recruiting this anchor tenant.
We have agreed to assist you in aChieving these two
objectives on an hourly basis, at our standard fee of
At tachment I
WCDD'
HUSING
& ASSOCIATES
$125 per hour for time devoted to these efforts by either
Gene Wood or myself, plus our documented reasonable and
normal expenses.
Bob, again, both Gene and I are confident that through
the performance of these tasks, we will demonstrate to
RDA that a long term relationship with our firm will be
mutually beneficial.
Very ly yours,
ffA.
ohn E. Husing, )h.D.
Senior Partner
Attachment T