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CIT~- OF SAN BERNARDIN~ - REQUE~T FOR COUNCIL ACTJI~N
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From:
KENNETH J. HENDERSON, DIRECTOR
Subject: REHABILITATION LOAN FOR HISPANIC
CHAMBER OF COMMERCE
Dept:
COMMUNITY DEVELOPMENT
Date:
DECEMBER 23, 1986
Synopsis of Previous Council action:
On November 18, 1985, the Mayor and Common Council considered this item and referred it
to the Ways and Means Committee for review.
On December 2, 1985, the Mayor and Common Council adopted resolution #85-503 authorizing
the execution of a grant deed conveyance and setting a joint public hearing to consider
the proposed sale of the property.
On January 1, 1986, the Mayor and Common ncil conducted a public ng and
authorized the sale of property locat at 972 North Mt. Vernon Avenue, San rnardino,
to the Inland Empire Hispanic Chamb of Com
Recommended motion:
Move to approved CDBG Rehabilitation Loan for the Hispanic Chamber of Commerce
in the amount of $ 81,000.00
_~ u. ~~~
Contact person:
Ken Henderson/Nestor Nazario
Phone:
5065
Supporting data attached:
Staff Report
Ward:
1
FUNDING REQUIREMENTS:
Amount:
Sou rce:
CDBG
Finance: J./a.-.- c::;:' ~
Council Notes:
75-0262
Agenda Item No. ~,
CITY OF SAN BERNARDIN" - REQUE~T FOR COUNCIL ACT'')N
STAFF REPORT
In June of 1986, the r.1ayor and Common Council approved the FY
1986/1987 "Statement of Objectives and Projected Use of Funds", which
included loan funds for the Hispanic Chamber of Commerce. Over the
last several months, staff has met with the Hispanic Chamber Board,
Frank Tracadas, Civil Engineer; Charles Dunham, Building and Safety;
Ron Running, Planning Department, and the Development Review
Committee (DRC).
In addition to meeting with the Senior Assistant City Attorney, Allen
Briggs, staff also consulted with the Department of Public Works and
the following summarizes the project to date:
On July 7, 1986, Frank Tracadas, Civil Engineer was
selected by the Inland Empire Hispanic Chamber of Commerce
(HCC) to prepare the required engineering report.
On July 10, 1986, copies of the engineering report were
received. Also received from BCC were the By Laws and .
Corporate resolution. Still pending; Corporate minutes
referencing board's decision to authorize Board Chairman to
enter into agreements on behalf of HCC.
On July 16, 1986, staff received a request from Building
and Safety to obtain plans addressing handicap items. A
meeting was called with all interested parties to expedite
the requirements by Building and Safety and to obtain a
more detailed report (written summary) from the Engineer.
A termite report was also requested by staff.
On July 28, 1986, application for building permit was sub-
mitted to Building and Safety. It was determined that a
permit change plus fees would be incorporated within the
loan, i.e., paid by the HCC.
On September 22, 1986, in order to prepare for the con-
tractors to bid on the project, staff requested that Frank
Tracadas (engineer> submit a summary to guide staff rehab-
ilitation specialists in preparing the contractor's work
write-up.
On October 8, 1986, a meeting was held with Frank Tracadas,
Charles Dunham and staff in order to expedite receipt of
the summary from the Engineer and development of a plot
plan for the Chamber parking lot indicating landscape
planter and lighting as required by Design and Review
Committee.
On October 22, 1986, staff received plot plans and summary
of the structural plans. Staff reviewed same with Building
and Safety.
75-0264
On October 27, 1986, a rough estimate was completed by
staff with an estimated total of $69,676.00. liCC was
advised and also reminded that a copy of the minutes of the
meeting wherein the decision to borrow money was made for
the authorized amount.
On November 17, 1986, a full write-up was completed by
staff.
On November 25, 1986, staff held Owner's Conference with
liCC Board representatives in order to review each line item
on the write-up, prior to obtaining bids from contractors.
On December 5, 1986, initial bidding on the project was
extended to December 10, 1986 in order to allow additional
minority contractors to bid on the project.
On December 10, 1986, bids from contractors were received
and reviewed by staff. The following contractors were the
only bidders to submit estimates:
Clyde Thompson:
Dave Davies:
Howard Miller:
$74,178.00
$75,200.00
$74,239.00
Based on review of the cost estimates by the contractor and
staff, the lowest acceptable bidder is Clyde Thompson.
On December 22, 1986, staff advised HCC that date certain
will be during the month of January subject to Council's
approval. The rounded total for the loan has been cal-
culated as follows:
Contractors' Bid:
Contingency:
Structural Plans:
Property Appraisal:
Plot Plans:
Title Report:
TRW:
Recording:
$74,178.00
$ 3,417.00
$ 1,000.00
$ 1,200.00
$ 450.00
$ 405.20
$ 40.00
$ 7.00
Total:
$80,698.00
Rounded Total:
$81,000.00
On December 23, 1986, staff submitted all the proper
documents to the City Attorney, in order to obtain a legal
opinion. It should be noted that the following concerns
have been expressed by Allen Briggs.
a) The promissory note does not have a "due date" and
violates state law.
b) The proposed deferred loan does not anticipate the
assessment and collection of interest. If the interest
is deferred, the City will be unable to comply with HUD
guidelines concerning the loan-to-value ratio, (must
not exceed ninety percent (90%)).
Accordingly, staff recommends approval of the loan with the under-
standing that loan will be in compliance with all state and federal
rules and regulations.
K~.Gke~ Di rector
Community Development .Department
file: hispanicstaffrp