HomeMy WebLinkAboutR31-Economic Development Agency
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
C FROM:
Emil A. Marzullo
Interim Executive Director
SUBJECT:
Assistance League of San Bernardino located at
580 West 6" Street, San Bernardino -
Additional Funding (Central City North
Redevelopment Project Area)
DATE:
February 11, 2008
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Svnonsis of Previous Commission/Council/Committee Action(s):
On September 6, 2007, Redevelopment Committee Members Estrada, Johnson and Baxter unanimously voted to recommend that
the Community Development Commission consider this action for approval.
Recommended Motion(s):
(Community Develonment Commission)
Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the
Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute
Amendment No. I to the Maintenance and Operation Contract by and among the Agency, the County of San
Bernardino and the Assistance League of San Bernardino (580 West 6" Street, San Bernardino - Central City North
Redevelopment Project Area)
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Contact Person(s): Colin Strange Phone: (909) 663-1044
Project Area(s):
Supporting Data Attached:
Central City North
Redevelopment Project Area
Ward(s):
It! Staff Report It! Resolution( s) Iii Agreement( s )/Contract( s) 0 Map( s) 0 Letter( s)
FUNDING REQUIREMENTS:
Amount: $
53,000
Source:
Community Reinvestment Funds
2007-2008 EDA Budget
Budget Authority:
:tJ1
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Signature:
Emil A. Marzullo, Int . Executive Director
Services Director
Commission/Council Notes:
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P\Agendas\Comm Dev Commission\CDC 2008\02-19-08 ..usistancc League - Amendmenl No. I SR.~
COMMISSION MEETING AGENDA
Meeting Date: 02/19/2008
Agenda Item Number: -&3..L
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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ASSISTANCE LEAGUE OF SAN BERNARDINO LOCATED AT 580 WEST 6TH STREET, SAN
BERNARDINO - ADDITIONAL FUNDING
(CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA)
BACKGROUND:
On November 21, 2005, the Community Development Commission of the City of San Bernardino
("Commission") authorized the Commission Chairperson to execute a Maintenance and Operation Contract
("Contract") by and among the County of San Bernardino ("County"), Assistance League of San
Bernardino ("Grantee") and the Redevelopment Agency of the City of San Bernardino ("Agency") for the
rehabilitation of the Grantee's headquarters at 580 West 6th Street, San Bernardino. The eastern part of this
100 year old building has tilted as much as 4 inches on the eastern side, and several other serious health and
safety issues also exist such as an unusable fire escape and handicap access deficiencies (collectively,
"Deficiencies"). The Grantee is a non-profit organization, which for 58 years has provided essential dental
services to lower income children, as well as a school clothing program, and like most local non-profits,
their financial resources are limited. Based upon an initial engineering assessment, which was provided
pro-bono by a local engineering consultant, the cost was estimated at $450,000 to correct these
Deficiencies. It must be stressed that this dollar figure was merely an expert estimate in the absence of a
more extensive engineering assessment.
In as much as the Grantee is located in downtown San Bernardino, it also provides assistance to children
outside the city limits of San Bernardino; thus, the County of San Bernardino Economic Development
Agency contributed 50% of the funds in the amount of $225,000 while the Agency funded the other 50%
from the Community Reinvestment Fund, provided that the Grantee continued to provide the same level of
philanthropic service to the community for a minimum of 10 years following the date of completion of the
improvements.
CURRENT ISSUE:
After approval of the Contract by the Commission, Agency Staff initiated .expert architectural and
engineering evaluation of the building, including its method of construction and an assessment of its
Deficiencies together with a complete set of structural and engineering drawings. The cost of these studies
and plans amounted to $41,000. This was unfortunately a relatively lengthy process as the number of
engineers in this area qualified to undertake an assessment of this nature were very limited, and the demand
for said expert services at that time was very high. After Agency Staff was in possession of the information
required to prepare a comprehensive bid document, the scope of work was included in the bid document to
cure the Deficiencies. Unfortunately, no bids were received although two contractors attended the walk-
through. When questioned why they had not submitted a bid, both contractors indicated that the job was
too complicated and the estimated costs for the work exceeded the remaining budget of $409,000.
Moreover, because of the age of the building and the type of work needed, the two contractors were not
able to bond for the job.
Subsequently, the contractors were asked to reconsider and separate their bid into the following 4
components: Base Bid: Correct the structural deficiencies of the building and rectify all health and safety
and ADA requirements (includes foundation); Alternate No.1: Wrap the building in II, inch plywood, re-
P,\Agendas\CoTl'lll'l Oev CommissionlCOC 2008\02-19-08 Assistance League - Amendmenl No 1 SR dot
COMMISSION MEETING AGENDA
Meeting Date: 02/1912008
Agenda Item Number: ~
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Economic Development Agency Staff Report
Assistance League - Amendment No. 1
Page 2
stucco and repaint; Alternate No.2: Replace 4 windows on the west side to match existing wood frame
where necessary; and Alternate No.3: Insulate the building for energy conservation.
Only one qualified bid was subsequently received from Felix Francisco of Francisco Construction who bid
to undertake the Base Bid and Alternate No. I in the amount of $408,071 ("Scope"). Thus, no additional
funds were available for any contingencies. The cost of Alternate No.2 was $7,600 and Alternate No.3
was $38,600 making the total bid $454,271, which together with the $41,000 already spent on engineering
drawings, brought the total project to $495,271.
In preliminary discussions between the Agency Executive Director and County Staff, it was mutually
agreed that the additional repairs are necessary and that it would be cost effective to undertake these
additional repairs concurrently with the Scope contained in the Base Bid and Alternate No. I. Agency and
County Staff agreed to both approach their governing bodies for an additional $ 106,000 total amount.
Thus, the additional work was then intended to be funded 50/50. between the Agency and the County. This
would enable the project to be completed as originally anticipated and provide a contingency factor of
$60,729 should unforeseen conditions arise.
The County has, however, since declined to contribute any additional funds to the Project so Agency Staff
is proceeding with the original request as proposed to the Redevelopment Committee on September 6,
2007. The Agency will contribute $53,000 and cover the cost of the additional work in Alternate Nos. 2
and 3 and to leave a small contingency of $7,729 for any unforeseen items.
Not only is rehabilitation of this historic old house a vital link to preserving the history of our community
for generations to come, it is also regarded as an integral part of the Agency's efforts to revitalize the
Central City North Redevelopment Project Area. Members of the Grantee donate an inordinate amount of
time to raise the funds to provide the vital dental and other care to the underprivileged children of the
community.
ENVIRONMENTAL IMPACT:
Categorically exempt under California Environmental Quality Act ("CEQA") Guidelines, Section 15301,
Existing Facilities.
FISCAL IMPACT:
$53,000 from Community Reinvestment Funds.
RECOMMENDATION:
That the Communi
elopment Commission adopt the attached Resolution.
Emil A. Marzullo,
Executive Director
P,\Agendas\Comm Dev ComrnissionlCDC 2008\02_19_01 AssislUICe League. Amendment No. I SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 02/1912008
Agenda Item Number: 1..31-
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO
EXECUTE AMENDMENT NO. 1 TO THE MAINTENANCE AND
OPERATION CONTRACT BY AND AMONG THE AGENCY, THE
COUNTY OF SAN BERNARDINO AND THE ASSISTANCE LEAGUE OF
SAN BERNARDINO (580 WEST 6th STREET, SAN BERNARDINO -
CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA)
21 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
22 OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:
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Section 1.
The Commission hereby approves the attached Amendment No. I in the form
24 presented at the meeting at which this Resolution is adopted. The Executive Director of the Agency is
25 hereby authorized and directed to execute Amendment No. I on behalf of the Agency, together with
26 such technical and non-material conforming changes as may be recommended by Agency Counsel.
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Section 2.
The Resolution shall become effective immediately upon its adoption.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO
EXECUTE AMENDMENT NO. 1 TO THE MAINTENANCE AND
OPERATION CONTRACT BY AND AMONG THE AGENCY, THE
COUNTY OF SAN BERNARDINO AND THE ASSISTANCE LEAGUE OF
SAN BERNARDINO (580 WEST 6th STREET, SAN BERNARDINO -
CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA)
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
8 Development Commission of the City of San Bernardino at a
, 2008, by the following vote to wit:
meeting
Navs
Abstain
Absent
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Secretary
20 The foregoing Resolution is hereby approved this
day of
,2008.
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Patrick J. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
Approved as to Form:
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26 By: r:;:;.."=77Ail L
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AMENDMENT NO.1
TO THE MAINTENANCE AND OPERATION CONTRACT
(Assistance League of San Bernardino)
THIS AMENDMENT NO. 1 TO THE MAINTENANCE AND OPERATION
CONTRACT (this "Amendment No.1") is dated as of February 19, 2008, by and between the
Assistance League of San Bernardino, a California non-profit corporation (the "Grantee"), and
the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic
(the "Agency"), and the County of San Bernardino Department of Community Development (the
"County") shall not be a party to this Amendment No. 1 nor bound by any provision hereof, and
this Amendment No. 1 is entered into in light of the facts set forth in the following Recital
paragraphs:
- RECITALS -
A. The Grantee, the Agency and the County have previously entered into an
agreement entitled, "Maintenance and Operation Contract," dated November 21, 2005 (the
"Contract"); and
B. Since the effective date of the Contract, the Grantee has, in collaboration with
Agency Staff, commenced the improvements ("Project"), as this term is defmed in the Contract,
and referred to as the Base Bid to correct the structural deficiencies of the building (including
the foundation) and rectify all health and safety and Americans with Disabilities Act ("ADA")
requirements and Alternate No. 1 which includes wrapping the affected portion of the building
with new plywood, re-stucco and repainting in the amount of Four Hundred Eight Thousand
Seventy-One Dollars ($408,071). After this is complete, Alternate Nos. 2 and 3 need to be
undertaken to replace the damaged windows caused by the subsidence of the building and
insulation of the building for energy conservation which together with the engineering and
architectural fees of Forty-One Thousand Dollars ($41,000) already disbursed will bring the total
to Four Hundred Ninety-Five Thousand Two Hundred Seventy-One Dollars ($495,271),
excluding contingency. However, unforeseen cost overruns are anticipated as work progresses
due in part to the fact that the estimates used to prepare the original Contract were completed
prior to the architectural and structural engineering reports being undertaken. Such items were
funded as part of the original Contract and no funds are remaining to pay Alternate Nos 2 and 3
or any unforeseen contingencies that may occur; and
C. The Contract Section 4 anticipated that additional funding may be provided either
by the Agency or the County. Said provision reads in part as follows: "This condition, however,
does not preclude the County and the Agency from respectively providing additional funding at
the sole and absolute discretion of either County or Agency, as applicable"; and
D. The Grantee and the Agency believe it is appropriate to consider and approve this
Amendment No. I in order that the Grantee may complete the Project as specified in the Project
description as approved in the original Contract.
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NOW, THEREFORE, THE GRANTEE AND THE AGENCY DOES HEREBY AGREE
AS FOLLOWS:
Section 1. The Grantee and the Agency hereby acknowledge and agree that
notwithstanding any term of the Contract to the contrary, the Agency shall increase its
contribution by Fifty-Three Thousand Dollars ($53,000) for a total of Two Hundred Seventy-
Eight Thousand Dollars ($278,000) plus the Two Hundred Twenty-Five Thousand Dollars
($225,000) as previously approved by the County pursuant to the Contract. Grantee agrees to
utilize such additional Agency funds for the purposes of undertaking Alternate Nos. 2 and 3 as
bid by the contractor presently under the Contract with the Grantee, and if funds remain available
from said Fifty-Three Thousand Dollars ($53,000) amount of the Agency contribution after the
completion of Alternate Nos. 2 and 3, then such excess may be used as a contingency amount to
be applied for payment of the total project expenditures related to unforeseen items arising
during the course of construction.
Section 2. Except as modified or amended by this Amendment No. I, all of the
provisions of the Contract shaH remain in full force and effect following the Effective Date of
this Amendment No.1.
IN WITNESS WHEREOF, the Assistance League of San Bernardino and the
Redevelopment Agency of the City of San Bernardino executed this Amendment No. 1 as of the
dates written next to the signatures of their duly authorized representatives, below.
AGENCY
Date: 6L/ 12{ Or
Redevelopment Agency of the City of San Bernardino,
a public body, corporate olitic
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By:
xecutive Director
Emil A. Marzullo, IIi .
Approved as to Form and Legal Content:
BY:~~
GRANTEE
Date:
j-3/-of
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Assistance Leagt!e-ofthe City of San Bernardino
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Car H, F J 'l;;;l:)u!t;ul
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