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Home My WebLink AboutR17-Economic Development CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY ORIGINAL FROM: Emil A. Marzullo Interim Executive Director SUBJECT: Assistance League of San Bernardino - Amendment No. 3 to the Mainteuance and Operation Contract to the Maintenance Operation Contract (Central City North Redevelopment Project Area) DATE: December 22. 2008 SvnoDsis of Previous Commission/Council/Committee Action(s): On December 18. 2008, Redevelopment Committee Members Baxter and Johnson unanimously voted to recommend that Ibe Community Development Commission consider this action for approval. Recommended Motion(s): (Communitv Develooment 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.3 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) Contact Person(s): Brian Turnbull Phone: (909) 663-1044 Project Area(s): Central City North Redevelopment Project Area Ward(s): Supporting Data Attached: o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s) FUNDING REQUIREMENTS: Amount: $ 165,000 Source: Community Reinvestment Funds Budget Authority: 2008-2009 EDA Budget ~~2 Emil A. Marzullo, Intenm Executive Director Fiscal Review: i5C[~G"',, c~ I~I,~7( Barbara Lindseth, Administrative Services Director Signature: .........................mmm...mmm..mmm.m...mmmmm......m/:,..m......mm........mmm._______ Commission/Council Notes: (?,,1 C':. .;2(Y)Q - Z- I P:\Agendas/Comm Dev Commission\CDC 2009\01.05_09 Assistance League-Amendment No.3 SR.doc COMMISSION MEETING AGENDA Meeting Date: 01/05/2009 Agenda Item Number: ~ 1- S'-o'f ECONOMIC DEVELOPMENT AGENCY ST AFF REPORT ASSISTANCE LEAGUE OF SAN BERNARDINO - AMENDMENT NO.3 TO THE MAINTENANCE AND OPERATION CONTRACT (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 Rehabilitation, Maintenance and Operation Agreement ("Agreement") by and between the County of San Bernardino ("County"), the Assistance League of San Bernardino ("League") and the Redevelopment Agency of the City of San Bernardino ('"Agency") for the rehabilitation of the League's headquarters at 580 West 6th Street. Due to differential settlement caused by poor soils compaction, the foundation of this 100 year old building sunk 4 inches, causing other structural/health and safety issues, Additionally, a lack of handicapped accessibility and fire code deficiencies seriously compromised the usefulness of the building. Funding for this project was provided by the County in the amount of $225,000 and by the Agency in the amount of $225,000 t<.1f a total of $450,000. This funding was provided through the Neighborhood Initiative Program ("'NIP") Program. The original construction bid of $454,200 combined with the cost of architectural and engineering services brought the project cost to $495,200. Due to the funding shortfall, on February II, 2008, the Commission approved an additional $53,000 in Community Reinvestment Funds for the project. The original contractor hired by the League, Francisco Construction, completed stucco demolition and stripping of the exterior framing and began the leveling process. However, they were unable to provide the required Performance and Payment Bonds and on April 28, 2008, their contract was terminated. The leveling and stabilization of the building revealed substantial unanticipated deficiencies throughout the structure. The interior wall surfaces require patching and repairs due to differential settlement of the structure and additional foundation repairs were required to minimize future problems. The removal of the exterior stucco also revealed substantial termite, dry rot and water damage to the framing which necessitated the reconstruction of the entire front porch and selected wall areas. Agency Stan; in consultation with the design and engineering professionals, as well as the City's building department, determined that the project was much more complicated than originally envisioned. Agency Staff enlisted a second contractor, Phillips Construction, with extensive experience in historic building rehabilitation. Phillips Construction bid $754,886 to complete the leveling and rebuilding of the foundation, as well as, the entire exterior rehabilitation and restoration of this historic structure. To meet this bid, the Commission approved an additional $400,000 for the project on August 4, 2008. CURRENT ISSUE: The League's facility is now structurally sound and the exterior rehabilitation and restoration, including a newly constructed handicap access ramp and steel stairway fire escape are complete. P: A~enlhs C"llllll [)~\ C('mlllis,i.," CllC ~(JO'J rJl-05-(J<J :\"iSl.UlCt Lcai"Llc'-AIll,'nd1Tl~"t !\o. "SR.dl". COMMISSION MEETING AGENDA Meeting Date: 01/05/2009 Agenda Item Number: All Economic Development Agency Staff Report Assistance League - Amendment NO.3 Page 2 However, current expenditures and unforeseen issues uneovcred to date have led to a project funding short fall of $61 ,896. The additive items to completc the structural improvements, although the building is now accessible, included private donations to construct a handicap accessible rcstroom and to reconstruct the facility parking lot which have been withdrawn due to the slumping economy. A bid of $103,104 has been rcccived to construct the handicap restroom, the parking lot and to complete the interior renovation. The massive foundation and structural work necessary to make the facility structurally safe cracked the intcrior walls and windows. The interior requircs wall replastcring and painting, and ncw flooring. Not only is rchabilitation of this historic house a vital link to prescrving 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 Arca. Members of the League donate an inordinate amount of timc to raise funds to providc tor the Dental Center and Operation School Bcll which serves thousands ofunderprivilcged children in the community. ENVIRONMENTAL IMPACT: Categorically exempt under the Calitomia Environmental Quality Act CCEQA") Section 15301. FISCAL IMPACT: $165,000 from Community Reinvestment Funds. RECOMMENDA nON: That the Community Development Commission adopt the attached Resolution. cz;~..'\ . .. j Emil A. Marz ; . ri~ Executive Director 1': "\gentlii'; ('''IlUIl nc, Ctl,mnissillll CDC :1111'1 Ol-OS.!)') AS~ISlaIICL L",lgll<'-:\'nt'wJmcnll\'o \ ';R dnc COMMISSION MEETING AGENDA Meeting Date: 01105/2009 Agenda Item Number: /1.11 1 2 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. 3 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) 3 4 5 6 7 8 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, on August 4, 2008 the Commission adopted Resolution No. CDC/2008-29 21 approving Amendment No.2 to the Contract in the amount of $400,000 in order to meet additional 22 costs associated with the completion of the project; and 23 WHEREAS, certain unforeseen additional expenses have increased the final Project 24 funding amount by an additional $165,000; and 25 WHEREAS, it is appropriate for the Commission to approve Amendment No. 3 to the 26 Contract solely as between the Agency and the Grantee ("Amendment No.3"). 27 NOW, TIlEREFORE, TIlE COMMUNITY DEVELOPMENT COMMISSION OF TIlE CITY 28 OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: I 1 Section 1. The Commission hereby approves the attached Amendment No. 3 in the form 2 presented at the meeting at which this Resolution is adopted. The Interim Executive Director of the 3 Agency is hereby authorized and directed to execute Amendment No.3 on behalf of the Agency, 4 together with such technical and non-material conforming changes as may be recommended by Agency 5 Counsel. 6 Section 2. 7 1// 8 1// 9 1// 10 1// 11 1// 12 1// 13 1// 14 1// 15 1// 16 /1/ 17 1// 18 1// 19 1// 20 /1/ 21 /1/ 22 1// 23 1// 24 1// 25 1// 26 1// 27 /1/ 28 1// This Resolution shall become effective immediately upon its adoption. 2 1 2 3 4 5 6 7 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. 3 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 ioint regular meeting thereof, held on 9 the ~ day of Januarv, 2009, by the following vote to wit: 19 Abstain Absent Secretary 20 The foregoing Resolution is hereby approved this 21 22 23 24 day of ,2009. Patrick J. Morris, Chairperson Community Development Commission of the City of San Bernardino Approved as to Form: 25 26 By: 27 28 \<~ Agency oun el 3 AMENDMENT NO.3 TO THE MAINTENANCE AND OPERATION CONTRACT (Assistance League of San Bernardino) THIS AMENDMENT NO. 3 TO THE MAINTENANCE AND OPERATION CONTRACT (this "Amendment No.3") is dated as of January 5, 2009, 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 and Housing (the "County") shall not be a party to this Amendment No. 3 nor bound by any provision hereof; and this Amendment NO.3 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 and Amendment No.2 to the Contract which provided an additional Four Hundred Thousand Dollars ($400,000) to the Project for a total Agency contribution of Six Hundred Seventy-Eight Thousand Dollars ($678,000); 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.3 in order that the Grantee may complete the Project as specified in the Project description as approved in the original Contract. F. After construction of the improvements began, the leveling and stabilization of the building revealed additional deficiencies with the interior wall surfaces that required 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, resulted in additional costs that were not originally P: A~enJ.,s.A~e~da All.':h:nent., A~enda Allachment, Agtnd~ /\URchments Agnnls-Amend 2009 01-05-09 Assi51~nce Leagu~ Alllendmenl t"o. _'.do~ expected. Based on current expenditures and unforeseen issues uncovered to date, the original funding fell short of the funding necessary to complete the Project. 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 One Hundred Sixty-Five Thousand Dollars ($165,000) for a total of Eight Hundred Forty-Three Thousand Dollars ($843,000) 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.3, in consideration of the additional $165,000 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 Bernardino 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 2, the Grantee agrees to repay to the Agency, inunediately upon demand, the unamortized 2 portion of the additional $165,000 of grant funds authorized pursuant to this Amendment No.3. Such amortization shall occur during the twenty (20) years of this grant covenant at a dollar amount equal to $8,250 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.3. 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.3 or a notice of covenant as contained in this Amendment No.3, 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.3. Section 3. Except as modified or amended by this Amendment No.3, all of the provisions of the Contract shall remain in full force and effect following the Effective Date of this Amendment No.3. IN WITNESS WHEREOF, the Assistance League of San Bernardino and the Redevelopment Agency of the City of San Bernardino executed this Amendment No.3 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: ~~~ GRANTEE Assistance League of San Bernardino a California non-profit corporation Date: By: Donna Hoffman 3