HomeMy WebLinkAboutCDC/2008-29
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RESOLUTION NO. CDC/2008-29
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. 2 TO THE MAINTENANCE AND
OPERATION CONTRACT BY AND BETWEEN THE AGENCY AND THE
ASSISTANCE LEAGUE OF SAN BERNARDINO (580 WEST 6th STREET,
SAN BERNARDINO - (CENTRAL CITY NORTH REDEVELOPMENT
PROJECT AREA)
WHEREAS, the Community Development Commission of the City of San Bernardino (the
9 "Commission") is the governing board of the Redevelopment Agency of the City of San
10 Bernardino (the "Agency"); and
11 WHEREAS, the subject property is located at 580 West 6th Street, San Bernardino,
12 California, within the Central City North Redevelopment Project Area (the "Property"); and
13 WHEREAS, on November 21, 2005, the Commission adopted Resolution No. CDC/2005-40
14 approving a Maintenance and Operation Contract (the "Contract") by and among the Agency, the
15 County of San Bernardino with the Assistance League of San Bernardino (the "Grantee") in the
16 amount of $225,000 in order to perform much needed repairs to the building; and
17 WHEREAS, on February 19,2008, the Commission adopted Resolution No. CDC/2008-7
18 approving Amendment No. I to the Contract in the amount of $53,000 in order to meet additional
19 costs needed for the completion of the Project; and
20 WHEREAS, certain unforeseen additional expenses have increased the total Project funding
21 amount by an additional $400,000; and
22 WHEREAS, it is appropriate for the Commission to approve Amendment No. 2 to the
23 Contract solely as between the Agency and the Grantee ("Amendment No.2").
24 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
25 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. 2 in the form
27 presented at the meeting at which this Resolution is adopted. The Interim Executive Director of the
28 Agency is hereby authorized and directed to execute Amendment No. 2 on behalf of the Agency,
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CDC/2008-29
1 together with such technical and non-material conforming changes as may be recommended by Agency
2 Counsel.
3 Section 2.
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This Resolution shall become effective immediately upon its adoption.
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CDC12008-29
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OFTHE 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. 2 TO THE MAINTENANCE AND
OPERATION CONTRACT BY AND BETWEEN THE AGENCY 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 j oint regular
meeting
9 thereof, held on the 4th day of AUiust , 2008, by the following vote to wit:
10 Commission Members: Aves Navs Abstain Absent
ESTRADA X
11
BAXTER X
12 -
BRINKER X
13
DERRY X
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KELLEY X
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JOHNSON X
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MC CAMMACK X
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19 Secretary
20 The foregoing Resolution is hereby approved this &:,7)/ day of August
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,2008.
Patric . Morris, Chal rson
ity Development Commission
of the City of San Bernardino
Approved as to Form:
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:: BY~~
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CDC/2008-29
AMENDMENT NO.2
TO THE MAINTENANCE AND OPERATION CONTRACT
(Assistance League of San Bernardino)
THIS AMENDMENT NO.2 TO TIlE MAINTENANCE AND OPERATION
CONTRACT (this "Amendment No.2") is dated as of August 4, 2008, by and between the
Assistance League of San Bernardino, a Califomia 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 and
Housing (the "County") shall not be a party to this Amendment No. 2 nor bound by any
provision hereof, and this Amendment No. 2 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. As of the effective date of the Contract, the Grantee has, in collaboration with
Agency Staff, commenced the improvements ("Project"), as this term is defined in the Contract,
to correct the structural deficiencies of the building and rectify all health and safety and
Americans with Disabilities Act ("ADA") requirements; and
C. The Grantee and the Agency have previously entered into Amendment No. I to
the Contract which provided an additional Fifty-Three Thousand Dollars ($53,000) to the Project
for a total Agency contribution of Two Hundred Seventy-Eight Thousand Dollars ($278,000);
and
D. Section 4 of the Contract anticipated that additional funding may be provide 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 the County or the Agency, as applicable"; and
E. The Grantee and the Agency believe it is appropriate to consider and approve this
Amendment No.2 in order that the Grantee may complete the Project as specified in the Project
description as approved in the original Contract.
After construction of the improvements began, the leveling and stabilization of
the building revealed additional deficiencies with the interior wall surfaces that will require
unexpected patching and repairs to the interior walls and additional foundation repairs to
minimize future problems. The removal of the exterior stucco also revealed pockets of damage
to framing, including the front porch and selected wall areas, that while repairable and not
ultimately compromising to the structure, is resulting in additional costs that were not originally
expected. Based on current expenditures and unforeseen issues uncovered to date, the original
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CDC/2008-29
funding will fall short of the funding necessary to complete the Project. Phillips Construction,
which has completed the initial phase of the Project, has submitted a fixed price contract bid of
Seven Hundred Fifty-Four Thousand Eight Hundred Eighty-Six Dollars ($754,886) to complete
the entire rehabilitation and restoration of this historic structure.
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 Four Hundred Thousand Dollars ($400,000) for a total of Six Hundred Seventy-
Eight Thousand Dollars ($678,000) plus the Two Hundred Twenty-Five Thousand Dollars
($225,000) as previously approved by the County pursuant to the Contract. The Grantee agrees
to utilize such additional Agency funds for the purposes of completing the Project.
Section 2. The Grantee covenants and agrees with the Agency that for a period of
time equal to twenty (20) years from and after the date of this Amendment No.2, in
consideration of the additional $400,000 of grant funds as provided pursuant to this Amendment
No.2, as follows:
(i) the Grantee shall continue to utilize the facility that is the subject of the
Contract to provide dental services to children within the San Bemardino
community; and
(ii) the Grantee shall not abandon the use of the facility identified in the
Contract, or otherwise cease to function as a California non-profit
corporation in good standing with the State of California and continuing to
provide a community service within the downtown area of the City of San
Bernardino; and
(iii) the Grantee shall not sell. transfer, mortgage, assign or otherwise dispose
of the real property asset identified in the Contract without the prior
express written consent of the governing body of the Agency at its sole
and absolute discretion; and
(iv) the Grantee shall provide such written reports and responses to inquires
submitted in writing by the Agency Executive Director from time-to-time
regarding the activities and functions of the Grantee occurring at the
property identified in the Contract.
In the event the Grantee should violate any of the covenants and agreements set forth in this
Section 2, the Grantee shall have thirty (30) days after a receipt of a written notice of default
from the Agency specifying the nature of the alleged default in which to cure such default or to
commence such cure and prosecute such cure to completion in an expeditious manner as possible
if the nature of the default is such that it cannot be cured within said 30-day period of time.
Upon a final determination by the Agency that a default has occurred as set forth in this Section
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2, the Grantee agrees to repay to the Agency, immediately upon demand, the unamortized
portion of the additional $400,000 of grant funds authorized pursuant to this Amendment No.2.
Such amortization shall occur during the twenty (20) years of this grant covenant at a dollar
amount equal to $20,000 per year with such amortization occurring as of the last day of each 1-
year period of time following the date of this Amendment No.2.
The Grantee further agrees to execute in recordable form and cause to be recorded in the real
property records of the County of San Bernardino, either a copy of this Amendment No. 2 or a
notice of covenant as contained in this Amendment No.2, which recordable document shall
remain as a lien against the property identified in the Contract during the 20-year duration of the
use and restrictive covenant as contained in this Amendment No.2.
Section 3. Except as modified or amended by this Amendment No.2, all of the
provisions of the Contract shall remain in full force and effect following the Effective Date of
this Amendment No.2.
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IN WITNESS WHEREOF, the Assistance League of San Bernardino and the
Redevelopment Agency of the City of San Bernardino executed this Amendment No.2 as of the
dates written next to the signatures of their duly authorized representatives below.
AGENCY
Date: ~ (~~{ ~
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
~~-
By:
Emil A. Marzullo, Interim Executive Director
Legal Content:
By:
Agency C
GRANTEE
Date:
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Assistance League of San Bernardino
a California non-profit corporation
B~-t~ r
Donna Hoffman \J
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