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Home My WebLink AboutR39-Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY ORIGINAL FROM: Emil A.Marzullo SUBJECT: Amendment No. 1 to the 2006 Professional Interim Executive Director Services Agreement with California Property Specialists, Inc. ("CPSI"), for acquisition and relocation in the North Arden Guthrie Area DATE: April 10,2008 (IVDA Redevelopment Project Area) ---------------------------------------- ----------------------------------------------- ---Synopsis of Previous Commission/Council/Committee Action(s): On April 10, 2008, 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 Development 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. 1 to the 2006 Professional Services Agreement by and between the Agency and California Property Specialists,Inc.(IVDA Redevelopment Project) Contact Person(s): Colin Strange Phone: (909)663-1044 Project Area(s): IVDA Redevelopment Project Area Ward(s): 7 Supporting Data Attached: ❑ Staff Report Z Resolution(s)21 Agreement(s)/Amendment(s)/Contract(s) ❑ Map(s) ❑ Letter(s) FUNDING REQUIREMENTS: Amount: $ 32,000 Source: 20%Low and Moderate Housing Fund Budget Authority: $32,000 SIGNATURE: Fiscal Review: 4 C al,.K Emil A. Marzullo, n Im Executive Director Barbara Lindseth,Administrative Services Director ------------------------------------------------------------------------------ ------------------------------------------------------------- ------------------------------------------------------------------------ Commission/Council Notes: ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:Wgendas\Comm Dev Commission\CDC 2008\04-21-08 CPSI-Amendment No.1 SR.doc COMMISSION MEETING AGENDA Meeting Date: 04//211/20008 Agenda Item Number: f`J / ECONOMIC DEVELOPMENT AGENCY STAFF REPORT -------------------------------------------------------------------------------------------------------------------------------------—------—------------------------------------------------------------ AMENDMENT NO. 1 TO THE 2006 PROFESSIONAL SERVICES AGREEMENT WITH CALIFORNIA PROPERTY SPECIALISTS, INC. ("CPSI"), FOR ACQUISITION AND RELOCATION IN THE NORTH ARDEN GUTHRIE AREA (IVDA REDEVELOPMENT PROJECT AREA) BACKGROUND: On November 20, 2006, the Community Development Commission of the City of San Bernardino (the "Commission") approved the 2006 California Property Specialists, Inc., Professional Services Agreement (the "Agreement"), by and between the Redevelopment Agency of the City of San Bernardino (the "Agency") and California Property Specialists, Inc. ("CPSI" or "Consultant"), for the acquisition of the 23 remaining privately owned four-plexes and the 2 remaining vacant lots in the area commonly referred to as Arden Guthrie. These remaining structures were scattered around the 17 acre site which is bounded by Highland Avenue to the north, Arden Avenue to the east, 201h Street to the south and the alley behind Guthrie Street to the west. In addition, the contract provided for the preparation of a relocation plan as well as the physical relocation of the remaining tenants to safe and sanitary housing conditions elsewhere. The number of households was estimated at that time to be 92. The total amount of the contract was $298,250 comprised of $63,250 for the acquisition portion; $9,600 for the preparation of a relocation plan and $225,400 for the relocation services. In addition, $2 million was budgeted for actual relocation and moving expenses to be paid out of the 2006-2007 Agency Housing Fund budget. To date, CPSI have been successful in acquiring 22 of the 23 four-plexes and the 2 vacant lots on behalf of the Agency, which is sufficient for the redevelopment of the site as a Home Depot, retail and restaurant center to take place in proximity to the San Bernardino Soccer Complex. The acquisitions have been completed within budget. In addition, the tenants of the acquired properties have been relocated and the structures demolished as they became vacant; there are currently 2 structures remaining to be demolished. CURRENT ISSUE: Due to last year's volatile property market, the acquisition portion of the contract proved to be more complicated than anticipated with many property owners playing a waiting game in order to maximize their gains. In addition, the consultants were confined in their negotiating abilities to offering appraised value using friendly negotiation only which were restrictions they had not anticipated. Consequently, the acquisitions have taken longer, and have been more complicated, than first anticipated and have exceeded the schedule of performance by 4 months with another acquisition and a number of relocations still to be completed. CPSI have indicated to the Agency that they have overspent on the current Agreement in the amount of $32,000 and requested an amendment to the Agreement for this amount in order to complete the task. CPSI have had no negotiating leverage in these negotiations, however, they still managed to successfully secure the site for development to take place and to relocate the occupants at $1.1 million under budget. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:Wgendas\Comm Dev Commission\CDC 2008\04-21-08 CPSI-Amendment No.1 SR.doc COMMISSION MEETING AGENDA Meeting Date: 04/21//20008 Agenda Item Number: k31 Economic Development Agency Staff Report CPSI—Amendment No. I Page 2 ENVIRONMENTAL IMPACT: None. FISCAL IMPACT: The supplementary cost will be paid out of the Agency's 20% Low- and Moderate-Income Housing Fund which as stated, is $1.2 million under budget for this project. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. Emil A. Marzullo, n erim Executive Director -------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------- P:\Agendas\Comm Dev Commission\CDC 2008\04-21-08 CPSI-Amendment No.1 SR.doc COMMISSION MEETING AGENDA Meeting Date: 04/21/2008 Agenda Item Number: COP) I RESOLUTION NO. 1 t 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 3 THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY 4 OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE 2006 PROFESSIONAL SERVICES 5 AGREEMENT BY AND BETWEEN THE AGENCY AND CALIFORNIA 6 PROPERTY SPECIALISTS, INC. (IVDA REDEVELOPMENT PROJECT) 7 WHEREAS, on July 24, 2006, the Mayor and Common Council of the City of San 8 Bernardino (the "Council") adopted Resolution No. 2006-271, approving a $7.5 million loan 9 contract between the City of San Bernardino (the "City") and the US Department of Housing and 10 Urban Development ("HUD") for the purposes of acquiring the remainder of the privately owned 11 properties in the Arden Guthrie Area between Highland Avenue in the North, 20 Street in the 12 South, the alley behind Guthrie Street in the West and Arden Avenue to the East (the "Site"), 13 relocating the occupants and clearing the Site for future development; and 14 WHEREAS, the California Community Redevelopment Law ("CRL") requires that prior to 15 displacement of any resident, a Relocation Plan be prepared in order to assess the relocation and 16 housing needs of each resident and to quantify relocation benefits in accordance with State Law; 17 and 18 WHEREAS, California Property Specialists, Inc. ("CPSI" or "Consultant"), has numerous 19 years of experience and expertise in all areas of acquisition and relocation services in accordance 20 with the Uniform Relocation and Real Property Acquisition Policies and the State of California 21 Housing and Community Development Guidelines (California Code of Regulations, Title 25); and 22 WHEREAS, on November 20, 2006, the Community Development Commission of the City 23 of San Bernardino ("Commission") adopted Resolution No. CDC/2006-54 approving a 24 Professional Services Agreement ("Agreement") with the Consultant to carry out the Agency's 25 acquisition and relocation responsibilities pursuant to the terms in the Agreement in the amount of 26 $298,250; and ' 27 WHEREAS, owing to the volatile nature of the real estate market in 2007, this process has 28 proved to be more lengthy and complicated than originally anticipated and the Agency is now 1 P:\Agendas\Resolutions\Resolutions\2008\04-21-08 CPS[-North Arden Guthrie Relocation -Amend.No.I CDC Reso.doc 1 desirous in executing Amendment No. 1 to the Agreement which will increase the amount by 2 $32,000 and extend the term of the contract until December 31, 2008, in order to complete the 3 project as originally anticipated. 4 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 5 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 6 FOLLOWS: 7 Section 1. The Commission hereby approves the Amendment No. 1 to the Agreement 8 by and between the Agency and the Consultant in the form as attached hereto and as presented to 9 the Commission upon adoption of this Resolution, and the Commission hereby authorizes the 10 Interim Executive Director of the Agency to execute Amendment No. 1 on behalf of the Agency 11 together with such technical and conforming changes as may be recommended by the Interim 12 Executive Director of the Agency and approved by the Agency Counsel. 13 Section 2. This Resolution shall become effective immediately upon its adoption. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 P:\A¢endas\Resolutions\Resolutions\2008\04-2t-as rpsi-Nonh Arden r thrie RA—inn -Ammd Nn 1 fn('Q. A, I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE 2 INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY 3 OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE 2006 PROFESSIONAL SERVICES 4 AGREEMENT BY AND BETWEEN THE AGENCY AND CALIFORNIA PROPERTY SPECIALISTS, INC. (IVDA REDEVELOPMENT PROJECT) 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 6 7 Development Commission of the City of San Bernardino at a meeting thereof, held on the day of , 2008,by the following vote to wit: 8 Commission Members: Ayes Nays Abstain Absent 9 ESTRADA 10 BAXTER 11 BRINKER 12 DERRY 13 KELLEY 14 JOHNSON 15 16 MC CAMMACK 17 18 Secretary 19 The foregoing Resolution is hereby approved this day of , 2008. 20 21 22 Patrick J. Morris, Chairperson Community Development Commission 23 of the City of San Bernardino 24 Approved as to Form: 25 26 By: Agenc uns 1 27 28 3 P\Agendas\Resolutions\Resolutions\2008\04-21-08 CPSI-North Arden Guthrie Relocation -Amend.No I CDC Reso.doe i - CALIFORNIA PROPERTY SPECIALISTS, INC. AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT FOR ACQUISITIONS AND RELOCATION SERVICES IVDA REDEVELOPMENT PROJECT AREA (ARDEN GUTHRIE) This Amendment No. 1 (the "Amendment") to the Professional Services Agreement dated November 20, 2006 (the "Agreement"), is entered into as of April 21, 2008, by and between the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic and California Property Specialists, Inc., a California corporation(the "Consultant"). RECITALS WHEREAS, on July 24, 2006, the Mayor and Common Council of the City of San Bernardino (the "Council") adopted Resolution No. 2006-271, approving a$7.5 million loan contract between the City of San Bernardino (the "City") and the US Department of Housing and Urban Development ("HUD") for the purposes of acquiring the remainder of the privately owned properties in the Arden Guthrie Area between Highland Avenue in the north, 20 Street in the south, the alley behind Guthrie Street in the west and Arden Avenue to the east (the "Site"), relocating the occupants and clearing the Site for future development; and WHEREAS, the Consultant has numerous years of experience and expertise in all areas of acquisition and relocation services in accordance with the Uniform Relocation and Real Property Acquisition Policies and the State of California Housing and Community Development Guidelines (California Code of Regulations, Title 25); and WHEREAS, on November 20, 2006, the Community Development Commission of the City of San Bernardino ("Commission") adopted Resolution No. CDC/2006-54, approving the Agreement with the Consultant to carry out the Agency's acquisition and relocation responsibilities pursuant to the terms of the Agreement in the amount of$298,250; and WHEREAS, owing to the volatile nature of the real estate market in 2007, this process has proved to be more lengthy and complicated than originally anticipated and the Agency is now desirous of executing Amendment No. 1 to the Agreement which will increase the amount by $32,000 and extend the term of the contract until December 31, 2008, in order to complete the project as originally anticipated. NOW, THEREFORE, THE CONSULTANT AND THE AGENCY DOES HEREBY AGREE AS FOLLOWS: Section 1. The Consultant and the Agency hereby acknowledge and agree as follows: (i) notwithstanding any term of the Agreement to the contrary, Section 1 of the Agreement shall be amended to read as follows: "This Agreement shall commence as of the day and year first written above and shall remain in full force and effect until December 31, 2008." 1 P.\AgendasWgenda Attachments�Agrmts-Amend 2008\04-21-08 CPSI-North Arden Guthrie Amendment No I.doc (ii) notwithstanding any term of the Agreement to the contrary, Section 5 of the Agreement which reads "Two Hundred Ninety Eight Thousand Two Hundred Fifty Dollars ($298,250)" shall be replaced with "Three Hundred Thirty Thousand Two Hundred Fifty Dollars ($330,250)" and "Two Hundred Twenty-Five Thousand Four Hundred Dollars ($225,400) for relocation services" shall be replaced with "Two Hundred Fifty- Seven Thousand Four Hundred Dollars ($257,400) for relocation services" and the phrase "for example: $2,450 per four-plex unit for relocation expenses and $2,750 per acquisition" shall be deleted. (iii) any further reference to $298,250 elsewhere in the Agreement shall be replaced with $330,250. Section 2. Except as modified or amended by this Amendment, all of the provisions of the Agreement shall remain in full force and effect following the Effective Date of this Amendment. IN WITNESS WHEREOF, the Consultant and the Redevelopment Agency of the City of San Bernardino executed this Amendment as of the dates written next to the signatures of their duly authorized representatives, below. AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic Date: By: Emil A. Marzullo, Interim Executive Director Approved as to Form and Legal Content: By: Agency Co el CONSULTANT California Property Specialists, Inc., a California corporation Date: By: President Date: By: Secretary 2 P.\Agendas`.Agenda Attachments\AgrrnL Amend 2008\0421-08 CPSI-North Arden Guthrie Amendment No.I.doc I City of San Bernardino ECONOMIC DEVEL OPMENTA GENCY San BernaFino Redevelopment • Economic Development• Housing & Community Development SM May 12, 2008 California Property Specialists, Inc. (CPSI) Attention: Georgia Marquis 600 West Santa Ana Boulevard, Suite 115 Santa Ana, CA 92701 Re: California Property Specialists, Inc. Amendment No. 1 to the Professional Services Agreement for Acquisition and Relocation Services - IVDA Redevelopment Project Area (Arden Guthrie) Dear Ms. Marquis: Enclosed for your records is a fully executed Agreement as referenced above that was approved by the Community Development Commission of the City of San Bernardino on April 21, 2008 (Resolution CDC/2008-14). Should you have any questions regarding this matter, please feel free to call me at(909) 663-1044. Sincerely, Lorraine B. Wyche Secretary Enclosure: California Property Specialists, Inc. Amendment No. 1 to the Professional Services Agreement for Acquisition and Relocation Services - IVDA Redevelopment Project Area (Arden Guthrie) cc: Colin Strange, Project Manager(with Copy of Executed Agreement) Barbara Lindseth, Administrative Services Director (with Original Executed Agreement) Margaret Fedor, City Clerk's Office (with Original Executed Agreement) Wasana A. Chantha, Executive Secretary File PAClerical Services Dept\Lorraine\Letters\2008\05-12-08 CPSI Executed Agreement(North Arden Guthrie Amendment No.1).doc 201 North E Street, Suite 301 •San Bernardino, California 92401-1507•(909)663-1044•Fax(909)888-9413 www.sanbemardino-eda.org