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Home My WebLink About07-05-1994 Reg Mtg RACHEL CLARK City Clerk 2nd Floor AGENDA MAYOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO "July 5, 1994 - 11 :00 a.m." (Regular Meeting) Council Chambers, City Hall CALL TO ORDER: ,':"<. -."'1 I -..J -'- 'I ). "'.'"1'1. ROLL CALL: PRESENT: ",'\.-1 I '-'~ 'r'~. I I .:~ ') " ~ ,1 , ,X . ;J./~/,~.<av! ABSENT: (PUBLIC COMMENTS ON ITEMS NOT ON AGENDA) CONSENT CALENDAR . '!. ! "!..f That the motions indicated by Consent Calendar Rems numbered "1" through "6 "be adopted, except for Rems numbered: MOTION: f -) , ::i J.... ',,::J AGENCY ADMINISTRATION 1. REDEVELOPMENT WORKSHOP (Community Development Commissionl , ~j) l i " .;." That the Community Psvt)\cpmeni, Comrr.i,,'ion hold a Redevelopment WOrkshop on Thmsejay, July 14, 1994. 9:0J a,m. .12:00 p.m., at the Economic Development Agency, 201 North lil!:I' Street, 3i{' noor, Sa!,. Bernardino. MOTION: REGULAR MEETING KJH:lmp:cdc-1r1 1 COMMISSION AGENDA Dale: July 5, 1994 2. BUDGET WORKSHOP /Communitv DeveloDment Commissionl MOTION: , That the Community Development Commission establish Wednesday. July 20, 1994, at 9:00 a.m., in the Economic Development Agency Board Room, as the date, time and place certain for the FY 94/95 budget workshop. ')\ \ / - DEVELOPMENT DEPARTMENT 3. NORTHWEST PROJECT AREA COMMmEE /Communitv DeveloDment Commission I /RedeveloDment Committee Recommendationl MOTION: That the Community Development Commission receive and file the attached report regarding the Northwest Project Area Committee. ?;/. . ~ AGENCY ADMINISTRATION 4. EXTENSION OF 9/80 ADJUSTED SYNCHRONIZED WORK WEEK SCHEDULE /Communitv DeveloDment Commissionl MOTION: } .J. j That the Community Development Commission extend the current Agency Synchronized 9/80 Work Week Schedule and holidays in a manner identical to that previously and last approved by the Mayor and Common Council for the City on June 20,1994. , . , I ---------------------------------------------------------------- REGULAR MEETING KJH:Imp:cdc-lrl 2 COMMISSION AGENDA Date: July 5, 1994 PUBLIC WORKS 5. ADVERTISE FOR BIDS - RE-ROOFING AND REPLACING AIR CONDITIONING UNITS FOR BOYS & GIRLS CLUB MOTION: , ; ,-J.- j - (Mavor and Common Councill That the plans for re-roofing and replacing the air-conditioning units at the Boys and Girls Club, in accordance with Plan No. 9109, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. DEVELOPMENT DEPARTMENT 6. YEOMAN AND ASSOCIATES. INC. MOTION: 'J. , ;! /Communitv Develooment Commission I /Housina Committee Recommendationl That the Community Development Commission approve an Owner Participation Agreement (OPA) between the Agency and Yeoman and Associates, authorize utilization of $250,000 in low to moderate income housing funds in conjunction with the d!lVelopment of thirty-six (36) high quality homes and direct the Chairman and Ex(1Cutive Director to execute any documents necessary to effectuate this transaction. 1 I'~ ( /_" (.1..--<._ C,(~,_ti~ ,I . '--; ~ IV fJ 1 ), :-1 . '^ ...,1 _.' END OF CONSENT CALENDAR AGENCY ADMINISTRATION 7. CMC LIGHT OPERA MOTION A: .~ -j .<1 ;~, i.:..~ /Communitv Develooment Commission) /Redevelooment Committee Recommendationl That the Community Development Commission approve a Property AcqUisition Agreement for the purchase of the California Theater by the Redevelopment Agency. (~(f",) 71; /, i ---------------------------------------------------------------- REGULAR MEETING KJH2np:cdc-1r1 3 COMMISSION AGENDA Date: July 5, 1994 INo recommendation Submitted bv RedeveloDment Committeel MOTION B: "- Th~t the Community Development Commission approve a contract with The Robert Stein Group for interim operaijonal management of the California Theater for the following compensaijon: 1. One-lime fee of $19,000; 2. Monthly fee of $500 ($6,000 yearly) 3. Ten percent (10%) of any rental or outside income revenues from theater operalions; and further, that the Economic Development Agency budget be Increased accordingly. IRedeveloDment Committee Recommendationl MOTION C: That the Community Development Commission approve a contract with R.F. McCann & Company for $24,000, to perfonm survey, report and planning services for the rehabilitaijon of the California Theater; and further that the Economic Development Agency Budget be increased accordingly. I. EDA DIRECTOR'S HIRING AUTHORITY .--- (Community Development Commission) /,,:<.7' (MOTION: "<> That the Community Development Commission reaffirm the EDA Hiring Authority Policy in effect from 1952 to the present. ---------------------------------------------------------------- REGULAR MEETING KJH:mp:cdc-1r1 4 COMMISSION AGENDA Dale: July 5, 1994 9. ADJOURNMENT MOTION: REGULAR MEETING KJIl2np:cdc-1r1 That the meeting of the Mayor and Common Council/Community Development Commission be adjourned to Thursday, July 14, 1994, at 9:00 a.m., In the Economic Development Agency Board Room, 201 Nortl1 "E" Street, Third Floor, San Bernardino, California. 6 COMMISSION AGENDA Date: July 5, 1994 E CON .~ I C D EVE LOP MEN T A E N C Y OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION From: TIMOTHY C. STEINHAUS Subject: REDEVELOPMENT WORKSHOP Agency Administrator Date: June 24, 1994 ------------------------------------------------------------------------------------------------------------------ Synopsis of Previous Commission/Council/Committee Actionls): On June 23, 1994, the Redevelopment Committee recommended approval. ----------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Communitr Development Commission) MOTION: That the Community Development Commission hold a Redevelopment Workshop on Thursday, July 14, 1994,9:00 a.m. - .00 pm., at the Economic Development Agency, 201 North "E" Street, 3rd , San Bernardino. T ot C. STEINHAUS Agency Administrator ----------------------------------------------------------------------------------------------------------------------- Contact Person(s): Timothy C. Steinhaus Phone: 5081 Project Area(s): All Ward(s) .L:.1 Supporting Data Attached: Staff Report. FUNDING REQUIREMENTS: Amount: $0.000000 Source: Budget Authority: ----------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: ~-------------~--------------------~--------------------------------------------- TCS,SI>Thtpc,,,k~'P.nLo COMMISSION MEETING AGENDA Meeting Date: 07/05/1994 Agenda Item Number: I E CON ,~1I C D EVE LOP MEN T A E N C Y OF THE CITY OF SAN BERNARDINO STAFF REPORT Redevelopment Workshop In our continued effort to orient and familiarize Commission Members about Redevelopment issues, it is recommended that a general information workshop be held on July 14, 1994, from 9:00 a.m. to 12:00 p.m., in the Economic Development Agency Board Room. The offices of Sabo & Green and Miller & Schroeder Financial, Inc. have offered to provide a three hour general information workshop to the Commission on redevelopment and bond financing. The workshop presentation will consist of the basic redevelopment process and financing options available through redevelopment. Should the Commission like additional issues addressed, it is recommended that this information be provided to staff prior to the workshop. Staff recommends adoption of the form motion. TIMOTHY . EINHAUS, Agency Administrator Economic Development Agency Tcs:srvnvI:pc:wkshp.rda COMMISSION MEETING AGENDA Meeting Date: 07/05/1994 Agenda Item Number: L ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION From: TIMOTHY C. STEINHAUS Agency Administrator Subject: BUDGET WORKSHOP Date: June 24, 1994 ---------------------------------------------------------------------~------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action{s\: On June 20, 1994, Resolution 5400 was adopted authorizing the Economic Development Agency to continue expenditures at the current 93/94 budget level pending final approval of the 94/95 budget. ----------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission\ MOTION: That the Community Development Commission establish Wednesday, July 20, 1994, at 9:00 a.m., in the Economic Development Age Board Room, as the date, time and place certain for the FY 94/95 budg t shop. TIM Y. STEINHAUS Agency Administrator Contact Person(s): Timothy C. Steinhaus Phone: 5081 Project Area( s) All Ward(s): l-=.l Supporting Data Attached: Staff Report: FUNDING REQUIREMENTS Amount: $0 000 000 Source: Budget Authority: Commission/Council Notes: TCS:SM!\f:pc:wrkshp.bdt COMMISSION MEETING AGENDA Meeting Date: 07/05/1994 Agenda Item Number: -.z ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STAFF REPORT ----------------------------------------------------------------------------------------------------------------------- Budget Workshop The proposed FY 94/95 budget will be disseminated to the Community Development Commission the week of July 5, 1994, It is recommended that the budget be discussed and appropriate action be taken at a special workshop on July 20,1994, at 9:00 a,m, in the Economic Development Agency Board Room, Staff recommends adoption of the form motion, TIMOTHY C. HAUS, Agency Administrator Economic Development Agency TCS:srvllil:pc:wrk.shp.bili. COMMISSION MEETING AGENDA Meeting Date: 07/0511994 Agenda Item Number: Z DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY REOUEST FOR COMMISSION/COUNCIL ACTION From: KENNETH J. HENDERSON Executive Director Subject: NORTHWEST PROJECT AREA COMMITTEE Date: June 27,1994 ------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On June 23, 1994, the Redevelopment Committee recommended the Community Development Committee approve continuance of the Northwest Project Area Committee. -------------------------------------------------------------------------------------..----------------------------------------- Recommended Motion(s): (Community Development Commission) (Redevelopment Committee Recommendation) MOTION: That the Community Development Commission receive and file the attached report regarding the Northwest Project Area Committee. iLJ Administrator ~J~~ KENNE H J. HE ERSON Executive Director ---------------------------------------------------------------------------------------------------------------------..-------- Contact Person(s): Kenneth J Henderson/Stafford W Parker Project Area(s): Northwest INW) Supporting Data Attached: StaffRe.port. Memo dated 6/22/94 FUNDiNG REQUIREMENTS: Amount: $ N/A Source: N/A Phone: Ward(s): 5081 Sixth Budget Authority: N/A ------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: ---------------------------------------------------------------------------------- KJH:SWP:NWP AC.CDC(dle) COMMiSSION MEETING AGENDA Meeting Date: 07/0511994 Agenda Item No: .3 DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------------------- NORTHWEST PROJECT AREA COMMITTEE In its regular meeting on June 23, 1994, the Redevelopment Committee, subsequent to discussion and citizen comments, voted to recommend the Community Development Commission allow the continuance of the Northwest Project Area Committee (NWP AC) as presently constituted. Commission action is required to dissolve the NWP AC and no action or doing nothing will assure the PAC's continuance. BACKGROUND On July 7, 1982, the Mayor and Common Council approved and adopted the Redevelopment Plan for the Northwest Redevelopment Project Area pursuant to Ordinance No. MC-189. Subsequently, a law suit was filed (Armenta, et al v. Redevelopment Agency etc., et al) challenging the validity of the plan. After considerable time, dialogue and negotiations a settlement was struck to resolve the litigation. Ultimately, subject to certain specified conditions, all parties agreed to a Stipulation of Dismissal of the case. The City of San Bernardino Resolution No. 84-221 memorializing this agreement was approved and adopted by the Mayor and Common Council June 18, 1984. One condition of the litigation settlement was the requirement of the Agency, on behalf of the Mayor and Common Council, to establish a Northwest Redevelopment Project Area Committee (PAC) made up of persons with ties to the Northwest Project Area. This was done. Attached herewith is a staff memorandum dated June 23, 1994, illustrating some of the PAC's more recent accomplishments. Currently and historically, the Economic Development Agency (Development Deparlment) services all administrative and technical needs of the PAC. In compliance with the agreement the Agency also provides funding for a temporary secretary, postage, equipment, office supplies, telephone bills, utilities, etc., and office quarters for the PAC within the Agency-owned Public Enterprise Center building located at 1505 West Highland. Each year the Agency budgets thirty thousand dollars ($30,000) for PAC expenses and activities although the actual cost has only averaged thirteen thousand, five hundred dollars $13,500 for the last three years. -------------------------------------..--------------.....----------------------------------------.....------... KJH:SWP:NWPAC.CDC(dle) COMMISSION MEETING AGENDA Meeting Date: 07/05/1994 Agenda Item No: ~ Request for Commission/Council Action Northwest Project Area Committee June 27,1994 Page Number 2 --------------------------------------------------------------- PAC DISSOLUTION REOUIREMENTS Resolution No. 84-221 stipulates the PAC shall continue to exist until the end of its twelfth (12th) year after the adoption of the Northwest Redevelopment Project Area Plan. It also states the PAC shall remaio in existence if the Common Council does not vote to disband it during the eleventh (11 th) year (period of July 7, 1993 to July 7,1994) of its tenure. 10 the event the Commission does vote to terminate the PAC, on or before July 5,1994, it will remaio in existence for another year until July 6,1995. If the PAC remaios in existence beyond July 6, 1995, the Common Council may subsequently vote to abandon it subject to actual dissolution occurring upon two (2) years notice. lliS!.lE Should action be taken to initiate PAC dissolution, pursuant to Resolution No. 84-221 and Stipulated Dismissal (No. 212494), prior to July 7, 1994. RECOMMENDATION Staff recommends adoption of form motion. KE~~ERSON, Executive Director Development Department ----------------------------------------------------------------------------------------------------------- KJH:SWP:NWPAC.CDC(dle) COMMISSION MEETING AGENDA Meeting Date: 07/05/1994 Agenda Item No: 3 DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MEMORANDUM TO: Stafford W. Parker Deputy Director FROM: David J. Norman Development Specialist SUBJECT: ACCOMPLISHMENTS OF THE NORTHWEST PROJECT AREA COMMITTEE DATE: June 22,1994 COPIES: File ------------------------------------------------------------------------------------------------------------------ TIle Northwest Project Area Committee (PAC) is a court mandated standing Committee which meets on a regular basis to discuss Project area concerns and make recommendations to the City Council and other public bodies regarding activities that affect the west side of San Bernardino and the Sixth Ward. TIle PAC has supported several specific projects in addition to providing EDA staff ongoing support. Referenced below is a partial listing of projects in which the PAC has played a vital role over the last year and/or supported EDA staff on a frequent basis: I. Westside )'Iaza Jobs: The PAC provided construction and permanent job referrals for the citizens residing within the project boundaries before and during the opening of the Westside Shopping Center. 2. Alpha Beta Pricing: After receiving complaints about the prices at the Westside Shopping Center, PAC members conducted comparison studies and met with Alpha Beta store managers and its corporate executives. They were effective in having the store lower many of its prices. 3. Cahnat Cajon Creek Project: The PAC supported the Calmat Cajon Creek Project at the Planning Commission and City Council level, and is still actively involved in the Pro jecl. ------------------------------------------------------------------------------------------------------------------ DJN:lmp:accop.mem 3 'J DEVELOPMENT DEPARlMENT MEMORANDUM Accompllslunents of the Northwest Project Area Conunlttee June 22,1994 Page 2 -----------------------------------------------------------~------------------------------------------------------ 4. Union Negotiations. Calmat: The PAC is currently taking the lead role in union negotiations to provide union memberships and job preferences for project area residents working on the Calmat Cajon Creek Project. PAC members are in the process of drafting and negotiating a Memorandum of Understanding with the unions, and possibly Community College, which will serve as a basis for more specific training and preference negotiations with the unions. 5. Neighborhood Rehabilitation: The PAC has proven successful at advertising for and gathering support for Agency neighborhood clean-up projects and housing rehabilitation programs. 6. Information Clearing House: The PAC has served, and continues to serve, as a neighborhood-based information clearing house for many programs. In the past year, the PAC has provided infonnation on the State Street Sewer project and the Neighborhood Spirit Program. TIle PAC also works with the Wests ide Action Group and Neighborhood Watch groups. 7. Code Enforcement: PAC members are effective at relaying the complaints of project area residents/businesses to bring code enforcement issues to the attention of City Code Enforcement staff and "bird dogging" 01' monitoring such code-related problems to a point of closure. 8. Sounding Board: The PAC is always available with suggestions as to how City staff might approach a particular problem on the Wests ide. Pursuant to prior Council resolutions and court direction, the PAC is advised of redevelopment activities affecting the Northwest Project Area. TIley are also instrumental at gathering citizen complaints and bringing those complaints to City officials with a much more wlited and organized viewpoint/voice than that of a single citizen. ~o.~ DA D J. NORMAN, Development Specialist Development Department DJN~lmp:accop.mem ------------------------------------------------------------------------------------------------------------------ ~ ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION FROM: TIMOlliY C. STEINHAUS Agency Administrator SUBJECT: EXTENSION OF 9180 ADJUSTED SYNCHRONIZED WORK WEEK SCHEDULE DATE: June 29, 1994 -------.-.-------------------------------------------------------------------------------------------------------------------------------- Svnonsis of Previous Commission/Council/Committee ActionCs): On June 20, 1994, upon extending the City's 9/80 program for six (6) months, policy board members secured a consensus of Commission intent to approve an identical extension for the Agency on July 5, 1994 and directed staff to rely on such anticipated action. ------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Communitv Develonment Commission) MOTION: That the Community Development Commission extend the current Agency Synchronized 9/80 Work Week Schedule and holidays in a manner identical to that previously and last approved by the Mayor and Common Council for the City on June 20, 1994. ~~ ~r1. TIMOlliY C. STE US Agency Administrator --------------------------------------------------------------------------------------------------------------.-----------------------.---- Contact Person(s): Timothv C. Steinhaus Phone: 5081 Project Area(s): N/A Ward(s): N/A Supporting Data Attached: StaffRenort FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A Budget Authority: N/A -----------__._____ww_______w________w________________________.________________________.__________._____._________________.___..___________ Commission/Council Notes: ------------------------------------------------------------------------------------------------------------------ TCS:lag:07 -0 1-02.cdc COMMISSION MEETING AGENDA MEETING DATE: 07/05/1994 Agenda Item Number: ~ ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ Extension 0(9/80 Adjusted Synchronized Work Week Schedule On June 20, 1994, the Mayor and Common Council approved a six (6) month extension of the current 9/80 Adjusted Synchronized Work Week Schedule for the City. Consideration of the 9/80 schedule extension was also placed on the Community Development Commission Agenda (see Agency memorandum attached dated June 14, 1994). Upon approving extension of the City 9/80 schedule, the Council members also indicated it was the intent of the Community Development Commission to similarly extend the same schedule for Economic Development Agency staff on July 5, 1994. Given the Commission's intent for the Agency to "mirror" the City work schedule and holidays, the form motion is recommended. [~ 1w ~I't. TIMOTHY C. STE US, Agency Administrator Economic Development Agency ------------------------------------------------------------------------------------------------------------------ TCS:lag:07 -OI-02.cdc COMMISSION MEETING AGENDA MEETING DATE: 07/05/1:(. Agenda Item Number: ECOllo...-MIC DEVELOPMENT A",ENCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION From: TIMOTHY C. SlEINHAUS Agency Administrator Subject: CONTINUATION OF 9/80 WORK WEEK SCHEDULE FOR ECONOMIC DEVELOPMENT AGENCY Date: June 14, 1994 --------------------------------.-------------------------------------------------------------------------------------------- Svnop!lli!ll of PrP.vinu!I Cnmmi!ll!lion/ConnciIlCommittP.@ Action(!I)~ On December 20. 1993. the Community Development Commission extended a prior approved three (3) month pilot 9/80 Synchronized Worl< Week Schedule for the Economic Development Agency for six (6) additional months. ------------------------------------------------------------------------------------------------------------------------------ RecommP.nded Motion(!;): lCommunitv Develonment Comrni:'il!'!iion) MOTION: That the Community Development Commission continue the existing Agency Synchronized 9/80 Worl< Week Schedule to December 31.1995, and subsequently, ,="', ."'"'" oc "" _ ~iliOC"";~""'''' boy"'" "'" d... TIMOTHY C. STEINHAUS Agency Administrator ----------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Timothy C. Steinhaus/Stafford W. Parlcer Phone: 5081 Project Area(s): N/A Ward(s): N/A Supporting Data Attached: Staff Report FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A Budget Authority: N/A ----------------------------------------------------------------------------------------------------------------------------- Commi,(jsion/Conndl Nofe:c;: ----------..------..------------------------..----------....---------------------------------..------------------------------..----------- TCS: KJ 8:9.80s ync.cdc:dle COMMISSION MEETING AGENDA Meeting Date: 06/20/1994 Agenda Item Number: / 6 tf ECONvMIC DEVELOPMENT A",ENCY OF THE CITY OF SAN BERNARDINO STAFF REPORT ---------------------------........--.....--.-----.----------------------------...-........--...--........-......-----.......---...-- 9/80 ADTlJSTED SYNCHRONIZED WORK WEEK SCHEDlII,E BACKGROUND In September 1993 the Commission approved, on a trial basis, an Agency 9/80 Adjusted Synchronized Wolle Week Schedule primarily for the months of October. November and December. Essentially, the Agency offices were open from 7:30 AM. to 5:30 PM., Monday through Thursday and closed on alternate Fridays. On each Friday wolle day the office was open from 7:30 AM. to 4:30 PM. On December 20, 1993, staff made an extensive report of its fmdings regarding the trial period. Briefly stated, the report concluded the schedule was a success, it benefited the public, it satisfied South Coast Air Quality Management District (SCAQMD) minimum standards and no complaints from citizens doing or desiring to do business with the Agency were received. Subsequent to the presentation. the Commission approved a six-month continuation of the schedule. This action. in effect, amounted to a continuous nine-month schedule for Agency staff. The additional six-month period was allowed to "mirror" or coincide with simultaneous approval of an identical period and schedule for City Hall staff. The second six-month period will be over at the end of June 1994. It is again appropriate that the Commission consider continuation of the 9/80 schedule. The following text provides infonnation that may be helpful in such deliberations. PRIMARY BENEFITS OF 9/80 SCHEDULE There are many benefits to be derived from continuation of the 9/80 schedule; however, as is true with many issues. some are more critical than others. It is staffs judgment that the following are extremely beneficial to the citizens of San Bernardino and City. 1. Public Convenience: The schedule has proven to be very beneficial and convenient to citizens. The expanded Agency office hours are more accommodating to the schedule of citizens that want to conduct business in or visit Agency offices, but were previously precluded from doing so due to their own conflicting wolle hours. Paradoxically, the previous Agency wolle schedule (5/80 wolle week from 7:30 AM. to 4:30 PM. (Monday through Friday)) was not necessarily convenient or "friendly" to visitation efforts of citizens. For the typical citizen cmplnyee that wolleed out or I.,..,.". ;t was I1pl -------........--...--......---...----....--....---....-----.............-.........--.......----.......--.......---.......----.....-----..-------------.......---............ TCS: KJH :9-BOsync:.cdc:dle COMMISSION MEETING AGENDA Meeting Date: 06/20/1994 Agenda Item Number: /0 c/ ECONOMIC DEVELOPML,~T AGENCY STAFF REPORT RE: CONTINUATION 9/80 WORK WEEK SCHEDULE June 14, 1994 Page 2 ---..-.....................................-------........-.................................--......--.................................................................--...........-.... possible to take care of business at the Agency unless they took off worlc early or took time off their job (causing a loss of wages some times). Given quilling and traveltime for their own jobs, it was too early to "stop off" at the Agency in the morning and too late to visit in the evening. Even after the widespread publicity of the 9/80 Schedule, staff is unaware of any confusion of the public as to which Friday the office will be closed. Also, Friday is traditionally a slow day as it relates to walk-in traffic. Further, on Fridays construction crews normally stop worlcing early, usually at 3:00 PM., collect their pay and tend to their private business. This practice tends to make visitations light on Friday and, by default, render Monday through Thursday the heaviest days of contact with developers and construction personnel. Consequently, the alternative Fridays off do not pose a problem to a ml\iority of our business clientele or the public. The Agency has an answering service to receive telephone calls and take messages on Friday off days. Interestingly, there are not a lot of calls for staff to return the following Monday worlc day. This leads staff to conclude the message is gelling out sufficiently that the office is closed on alternative Fridays and the public knows which days these are. Also all telephone calls are returned the next Monday. The public on such occasions appears to appreciate that these calls are indeed returned promptly. Surprisingly, the answering service has become a positive factor for the Agency. 2. Air Onalilv Standard.. The 9/80 schedule results in a minimum of ten (10) pen:ent reduction of Agency (and by extension the City) employee vehicle ridership to help satisty mandatory South Coa~t Air Quality Management District (SCAQMD) regulations. A reversal of the 9/80 schedule would effectively place the Agency and City into potential non-compliance with such regulations. Realistically, it would be difficult or awkward at best, to explain such a reversal at an air quality compliance hearing. A survey of fifty-seven (57) Southern California cities and counties in Man:h 1994 found that fifty-<>ne (51) of them use some form of a compressed worlc schedule to meet smog control regulations. These adjusted worlc week schedules have proven to be effective to meet Air Quality Standards. Alternative strategies have not been successful in reducing the required Average Vehicle Ridership to satisty the air quality regulations. Typical alternative approaches have included, but have not been limited to, van pooling, car pooling, bicycle programs, employee incentive and award programs, telecommunication and assigned home worlc stations. ...............................................................................--.........--.....---.................................................................................................................... TCS: KJH:9-80sync:.c:dc::dle COMMISSION MEETING AGENDA Meeting Date: 06/20/1994 Agenda Item Number: I D if ECONOMIC DEVELOPlVl.. AT AGENCY STAFF REPORT RE: CONTINUATION 9/80 WORK WEEK SCHEDULE June 14, 1994 Page 3 ------...........---.....----...-.--..........--..........-.........---......--.......---.......---...--..-------..----.....-----------------......----......---...... Some cities have cited concern that even if you have a compressed worlc week schedule, the employees may still use their cars and put out smog. This is true. However, there is a distinct difference in the usage and ramifications. Even if this does happen the Agency/City will still get credit for compliance with SCAQMD standards. The regulatory body has also deteunined it is not merely the use of automobiles that affect air quality. It is primarily the cumulative emissions of vehicles or cars operating at inefficient low speeds due to traffic congestion. Reducing the number of cars on our freeways during rush hours will reduce unhealthy emissions. Most people will not travel during the rush hours and those who live longer distances from the worlc site will usually stay and do business within a reasonable distance from their own residences. The 9/80 Synchronized Worlc Week Schedule will cause this to occur. ADDITIONAl. BENEFITS OF 9/80 SCHEDITLE I. Increa.e in Work Production: Underntandably, due to decreased absenteeism and sick leave usage, employees are at their worlc stations longer and there is a higher level and consistency of staffing daily. This pattern allows and promotes higher staff productivity. More remarkable, the increased productivity has occurred in spite of greater influx of rush items. underntrength staffmg and an increased regular worlcload and projects such as the Superblock, police station, special projects, various housing developments and the like. The noted pattern of increased productivity is a benefit that has occurred in other entities using 9/80 or 4/10 worlc schedules. During a survey of over one-thousand, one-hundred, eighty (1,180) telephone calls between the hours of 4:30 PM. and 5:30 PM. during the December 1993 survey, it was shown that many people will take advantage of the more convenient hours to do business with the Agency. The same is true of visitations between 4:30 PM. and 5:30 PM. and, particularly, in cases where clients can come to the office after their own jObs to take care of rehabilitation mattern, such as submitting loan applications, making loan payments, signing documents, reviewing plans and the like. This has been a tremendous advantage for our housing staff while still reducing staff overtime when the meeting would have had to be rescheduled at the clients house after worlc hours. 2. Reduction in ITlilitie. and Energv IT.age: At the time of the last report about the 9/80 schedule in December 1993, staff was unable to quantify energy cost savings. This was because we had been successful in leasing the building to new tenants and the rate was not segregated from the Agency office usage. This is still true. We have leased the building to even more tenants and the smne ~ituation exists. However. we again in".dlin:"y t'telievc the savings exists and our f...:\pcri~qce ill thi;. regard is the same as that dOCUlllCIlI!',J ill nllwl cities. ....---.......--.........--........-......--......--....---...-----.................................................................................................................................. Yes: KJ H :9-80, ync.cdc: die COMMISSION MEETING AGENDA Meeling Dale: 06/20/1994 Agenda Item Number: /() if . .. ECONOMIC DEVELOPlV IT AGENCY STAFF REPORT RE: CONTINUATION 9/1>" WORK WEEK SCHEDULE June 14, 1994 Page 4 -----------........................-.......................---..--....---..-------..------..-..--..----------...--..----..-..-..---....--........................--................ 3. Reduction of Sick Leave TTsa"e: Nonnally, anticipated sick leave is reduced as has been the case with other cities using adjusted woIk week schedules. This is because employees usually utilize the Friday off woIk to take care of their personal business such as visiting a physician, taking their children to the doctor, visiting children schools, personal business appointments and the like. Upon allowing for two unique major occurrences causing extensive unavoidable leave (i.e., heart attack and birth of child) the sick leave utilized from January to May 1994 is less than that used during the same months in 1993. 4. Increase in Staff Morale: The 9/80 program has helped improve staff morale. Agency employees enthusiastically support the 9/80 schedule. This has been documented and confmned through a recent assessment swvey of Economic Development Agency employees in which all, except one, viewed the 9/80 schedule vel)' favorably and recommended it be continued. It is historically clear that staff morale has a defmite and dramatic impact (positively and negatively) on both the quality and quantity of woIk production. Good morale delays staff "bum out" and prevents the gradual build-up of ineffective employees in the face of a heavy woIkload and crash deadlines. Fortunately, the 9/80 schedule is not a "peIk" to the employees, inasmuch as it provides clear and measurably significant benefits to the City and its citizens as stated previously. The fact of the matter is that most employees happen to like it and still put in their nonnal woIk hours or even more. Management deems this important in view of the fact that it serves to mitigate the sting and absence of cost of living increases for five years for management staff and four years for general staff. RECOMMENDA TION It is recommended the 9/80 Synchronized WoIk Week Schedule for the Economic Development Agency be extended through December 31, 1995. A subsequent Commission review of the schedule should occur timely to allow assessment of the schedule's effectiveness. Further, staff recommends a thirty (30) day transition period in the event it is not extended beyond December 31,1995. This will provide a necessary minimum of time for extensive notification to the public to avoid anticipated confusion caused by the reversal of a schedule it has become accustomed to. Staff recommends adoption of the fonn motion. mwg --!.." ,,'s ,',',,,',,',,,""' Economic Development i\ gflley ....----.....-----......---.....--.....--....................--...................................-........---......---.................................--......--..................------.. TCS:KJ H:9..80s ync.cdc::dle COMMISSION MEETING AGENDA Meeting Date: 06/20/1994 Agenda Item Number: / D '-I DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION From: Roger G. Hardgrave, Dir. Subject: of Public Works/City Engr. Date: 6-27-94 Approval of Plans & Authorization to Ad- vertise for Bids -- Re-roofing and Re- placing Air-Condi- tioning Units for Boys & Girls Club, per Plan No. 9109 ----------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action: June, 1993 - Allocation of $128,400 in 1993/94 Community Develop- ment Block Grant Funds approved. ---------------------------------------------------------------- Recommended Motion: That the plans for re-roofing and replacing the air-conditioning units at the Boys and Girls Club, in accordance with Plan No. 9109, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. cc: K. Henderson A. Ramos J. Sharer Agency Administrator Timothy ----------------------------------------------------------------- Contact Person: Roger G. Hardqrave Phone: 5025 Project Area: N/A Ward(s): 6 Supporting Data Attached: Staff Report FUNDING REQUIREMENTS: Amount: $ 127,000 CDBG Source: Proqram ----------------------------------------------------------------- Budget Authority: Acct. #806-3003 Commission/Council Notes: Agenda Item NO.:~ DEPARTMENT OF PUBLIC WORKS STAFF REPORT Approval of Plans and Authorization to Advertise for Bids Re-roofing and Replacing Air-Conditioning Boys & Girls Club Plans for improvements to the Boys and Girls Club have been pre- pared by our staff and the project is ready to be advertised for bids. The project consists of removing and replacing the existing rock roof, and removing the 11 roof mounted HVAC units and replacing them with new energy efficient units. Below is an estimate of the total project cost: Construction Contract Engineering & Inspection (W.O. #1467) Sub-Total Contingencies (10%)! TOTAL ESTIMATED PROJECT COST $ 107,400 7,700 $ 115,100 11,900 $ 127,000 An amount of $128,400 has been allocated in the 1993/94 Community Development Block Grant Budget, under Account No. 806-3003, to finance the costs that will be incurred for this project. Additive Alternate "A," provision of an energy management system, is included in the special provisions. This alternate will be included in the contract award if sufficient funds are available. An application has been submitted to Southern California Edison Company for a rebate on the energy that will be saved. We recommend that the plans be approved and authorization granted to advertise for bids. 6-27-94 5" IIEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION FROM: KENNElH J. HENDERSON Executive Director SUBJECT: YEOMAN AND ASSOCIATES, INC. DATE: June 28, 1994 SvnoDsis of Previous Commission/Council/Committee Action(s): On May 24. 1994, the Housing Committee recommended (2-1 (Oberhelman)) to the Community Development Commission approval of an Owner Participation Agreement (OP A) between the Agency and Yeoman and Associates. and authorize utilization of $250,000 in low to moderate income housing funds. Recommended Motion(s): lCommunitv Develonment Commission) CHou,in!! Committee Recommendation) MOTION: That the Community Development Commission approve an Owner Participation Agreement (OP A) between the Agency and Yeoman and Associates. authorize utilization of $250,000 in low to moderate income housing funds in conjunction with the development of thirty-six (36) high quality homes and direct the Chairman and Executive Director to execute any documents necessary to effectuate this transaction. Admirri ~> strator KE~~~JRSON Executive Director Contact Person(s):Kenneth 1. HendersonlRobert 1. Lemlev Project Aroa(s): N/A Supporting Data Attached:StaffReoort. Attachments Phone: 5081 Ward(s): One (J) FUNDING REQUIREMENTS: Amount:$ N/A Budget Authority: Source: N/A N/A -----------.------------------------------------------------..._------------------.-------------------------------------------------------- Commission/Council Notes: ------------------------------------------------------------------------------------------------------------------ KJH:RJL:paw:yeoman.cdc COMMISSION MEETING AGENDA MEETING DATE: 07/05/1994 Agenda Item Number: {, DEVELOPMENT DEPARTMENT STAFF REPORT ------------------------------------------------------------------------------------------------------------------ YEOMAN AND ASSOCIATES. INe. On April 6, 1994, the Development Department Housing Division received a request for financial assistance from Yeoman and Associates, Inc., of Red lands, California to effectuate development of a proposed thirty-six (36) high quality single-family detached home sub- division. Yeoman and Associates, Inc., has an extensive background in successful real estate development throughout the Inland Empire. It was formed in 1970 as a building and civil engineering company. To date, the company has successfully developed residential sub- divisions, apartments, commercial buildings, auto service centers, medical buildings, restaurants and custom homes. The proposed development is located within Ward 1, one block west of Mountain View Avenue on Coulston Street (please see attached site map). The developer has a significant interest in upgrading the housing stock within this community. Development of this property will substantially improve the physical appearance of this area with much needed infrastructure in the form of full-width streets, curbs, gutters, sidewalks, and a sewer collection system that will serve the proposed development along with eighty-six (86) existing residences. The sub- division consists of thirty-six (36) "high quality" homes which include the following models: . Eight (8) three bedrooms/two bathrooms, 1,206 square foot homes, priced at $112,990 · Fourteen (14) three bedrooms/two bathrooms, 1,460 square foot homes, priced at $124,990 . Fourteen (14) four bedrooms/two bathrooms, 1,669 square foot homes, priced at $129,990. The proposed sub-division will establish a new standard in the area for quality and pride of ownership with a variety of quality amenities as follows: . Tile Roofs . Vaulted Ceilings . Ceramic Tile Counter Tops . Oak Cabinets . Skylights . Side and Rear Yard Fencing · Front yard landscaping with automatic irrigation ------------------------------------------------------------------------------------------------------------------ KJI-I:RJL:paw:yeoman.cdc COMMISSION MEETING AGENDA MEETING DATE: 07/05/1994 Agenda Item Number: ~ Development Department Staff Report Yeoman and Associates, Inc. June 21, 1994 Page-2- ------------------------------------------------------------------------------------------------------------------ The exterior elevations, interior amenities and overall appearance will establish this project as a standard for future development of the "Eastem Entrance" to the City. Yeoman and Associates is requesting $250,000 in Agency assistance to effectuate development of this thirty-six (36) home residential tract sub-division. This assistance would be utilized to finance required off-site street improvements (including curb, gutter and sidewalk) involving Coulston, Curtis, Elm and Rosena Avenue. When completed, these streets will be fully improved, thereby allowing vehicular traffic between Coulston Street and Davidson. Funding for this project was previously authorized as part of the FY 1993-94 budget adoption process. It is important to note that this project will generate substantial monies directly to the City of San Bernardino, including development fees in excess of $290,000 excluding school impaction fees. When the project is completed and occupied, it will then generate approximately $68,000 annually in property tax revenues to the City. Finally, the developer's installation of the required sewer line serving eighty-six (86) additional residences will entitle the City to sewer capacity fees estimated in excess of$320,000. Market Profiles, a professional residential market feasibility consulting firm, has analyzed the proposed development and has determined that this project would be extremely competitive and would generate an above average absorption rate. In addition, E. H. Wood and Associates has thoroughly analyzed the developer's proforma and financial capacity and has determined that Yeoman and Associates has the financial capability and banking relationships necessary to obtain construction financing on this project. Evidence of a recorded construction loan will however. be re<!Jlired prior to distribution of any Agency funds in coniunction with this proiect. Based upon the significant heretofore mentioned benefits to the surrounding neighborhood and community and the amount of Agency assistance being requested, staff recommends adoption of the form motion. ------------------------------------------------------------------------------------------------------------------ KJH:RJL:paw:yeoman.cdc COMMISSION MEETING AGENDA MEETING DATE: 07/05/1994 Agenda Item Number: t.D Development Department Staff Report Yeoman and Associates, Inc. June 21, 1994 Page - 3 - ------------------------------------------------------------------------------------------------------------------ Following extensive discussion on Tuesday, May 24, 1994, the Housing Committee recommended to the Community Development Commission approval (2-1 (Oberhelman)) of the Owner Participation Agreement and utilization ofIow to moderate housing funds in conjunction with this project. KENNETH J. HE ERSON, Executive Director Development Depa ment ------------------------------------------------------------------------------------------------------------------ Klli:RJL:paw:yeoman.cdc COMMISSION MEETING AGENDA MEETING DATE: 07/05/1994 Agenda Item Nnmber: _U III' , I .,. I '!i'I' 1 lit, ; ! )1 ~ -'---"- ~~ 'it ,--I~. r--; - 1A - =-'-1=-'=[4: I! I , , : , I ----- 18 /jrF" .- 'r-_,.' n.....' i ,':.! ',:n',.. '1"1'. : ..;1 " 'i' ,,' . -' ow I I. ~ I: . ii, ~ " '~lli.t ,:" .,.' ..' . ~ UI.J., .~~. L. !-_ r-~ 1C ff; HA&TER &uTE ",oroo 0 ...'" CJ Ii l) BEDROOM 2 I BEDROOM:3 I r -or -, \J',P 81 l....iJw"'="'l .w t-_~L_.....i GARAGE PLAN 1 1206 SQ FT MONTE VISTA fAML'r DINING LlVtlG ~y , , , PORCH % YEOMAN ASSOCIATES ENGINEERS' BUILDERS {, '0......... CORPORATE DRIVE. STE F REDlANOS. CAL.lF'ORNIA. Q2.'!o7A. 2A ._~.x ....,- 28 " ~ MONTE VISTA ruQ HA51LR 5UTt 01':-1"1 . . IJ ;1 ~T11 . I BtDROOM 2 DtIV BtDROOM 3 B8 GARAGf: PLAN 2 1460 SQ FT PORCH NOOK r" I I I. l_ 1 -!- fAMLY K1TCHfN DINING LIVING fNTRy I % YEOMAN ASSOCIATES ENCINEERS' BUll.OERS ~ 10444 CORPORATE ORIVE. STE .. REOl.ANDS. CAUF"OANIA 92374 ffmA' 79A_lfIU'"'' ~ .....\'\,~ Lu..t::' -''''''''.... ~!-,..~:!.'4"o:.-~y,.~.. /~'3A L-j ~ .l-=~ E~'_ -...., ''''''f;... 3C "r"'I:~-:'" ~ ""'I_...~l~;';.:. ....., -':'-. ":.:,.- (., Ov HAsm SllTE ! II ! II BEDROOM 2 BEDROOM ~ DElV BEDROOM 4 r\/l I { I f AI1IL Y MONTE VISTA Ii H~ O/"'t:-C TO !!!'.OW Iii ill ! '~, I KITCHEN , (1 '-.-" I r~~':'l11 : ~11 I.~ ,iLJ~ ~I ) / / --~----,------" I II I 'III' ~ 'I i I !IIIII 1J.61 18 I I I CJ r. i ' ii...w.1 \j ~~~ 1 J....] STObCl' L. c: .J UUiDIrr \j GARAGE RRST FLOOR PLAN 3 1669 SQ FT OORY II \ j i DINING UVlNG TI YEOMAN ID ~~~1~,~7~ (, 1044.... CORPORATE CRrvE, STE F ~_E~~)t!.N_OS. CAUFORNIA 92374 I I :., P I' ' I I I I I 1 I.._.JI 1 IL_J 1 r---'" I 1 I I ..---, I , 1 I I 1..___...11 r.J I I , I I I I I I 1 I, 'IL_.J I I...""LJ 1 I J I r---' )1 I I II I 1..___-' I I 1 J 1 I 1 , IL___J 1 1 1 1 1 1 1 1 I '- .L ..L .L .../. '-.-L ...l -l L L _____J , __~.WII!!_________ 1 I 1 1 1 1 I 1 1 I 1 I ij ~ ij ~ ~ , ...~ ..- " .. , 1 ~ .. ... ... '" ~., I , , -------1 II ,,~ ,,~ ~'-" ,,~ ".l>' ,,~ ,,~ ~ r---., L...J I , I I , I ,~ ~ ~ - ~ '" , , .. " .. U ... ,. t: 0 L___.J 1 I ij ~ ij I ~ --,-- I 1 I I 1""---" I ,..----..., 1 , :1: I I I 1 1 , .-...Jli ,..---' I L , I L" 1'---' I ..l. I 1 1 I 1 _____...l , T r-"'t..___...r-' 1 I 1,._., I , ,-, , , I 1 1 L_-,I ~ , , , , 1..--., L________.J I !i I III 1 , I I I I..___...J! 1-----' -----1 ..\..- 1 I r---, 1 I , I I 1 : ,J I I 1 1 I ~----I r----., I I 1 1 I 1 1 I I ' I 1 1 I I 1 r---' , I 1 I L..-....._J L_J , I , I ..L , I I , I 1 I ."..- ,. , ~ , 1 1 r- --------~,,~ -- L___J ---- 1 r---, I I r ., T T - , , I I ,J 1 1 I r-, , I I ,..-------..., r--' 1 I , 1 1 , , , I r--J I 1 I I I 1 I I I , I I 1 I I I , , I I I I I I .....------.... 1 I I L____J I I I I L__J 1 - . ! i i_ I ~ !I~I ~~~y~A 11%~~__.ln;- ;- I {, RECORDING REQUESTED BY: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND WHEN RECORDED RETURN TO: SABO & GREEN, a Professional Corporation Suite 2039 23801 Calabasas Road Calabasas, California 91302 (Space Above for Recorder's Use) REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OWNER PARTICIPATION AGREEMENT (Yeoman Associates) By and Between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO and YEOMAN ASSOCIATES a sole proprietor ~ I. A. B. C. D. II. A. B. C. III. [300] A. B. C. D. E. F. G. H. I. J. K. [100] [101] [102] [103] [104] 1. 2. 3. 4. [200] [201] [202] [203] [301] [302] [303] [304] [305] [306] [307] [308] [309] [310] [311] 1. 2. 3 . 4. 5 . TABLE OF CONTENTS SUBJECT OF AGREEMENT Purpose of Agreement The Redevelopment Plan The Site . . . .. . Parties to the Agreement [105] The Agency . .. . [106] The Participant [107] Prohibition Against Change Ownership, Management and Control of the Participant [108] Benefit to Project Area in AGENCY ASSISTANCE Project . .. . . Financing Assistance . . . . Affordable Housing Covenants IMPROVEMENT OF THE SITE Scope of Development Cost of Construction Construction schedule Bodily Injury and Property Damage Insurance City and Other Governmental Agency Permits .. . Rights of Access .. Local, State and Federal Laws Antidiscrimination During Construction . Taxes, Assessments, Encumbrances and Liens. . Prohibition Against Transfer of the Site, the Buildings or Structures Thereon and Assignment of Agreement .. Mortgage, Deed of Trust, Sale and Lease-Back Financing; Rights of Holders . .. . [312] No Encumbrances Except Mortgages, Deeds of Trust or Sale and Lease-Back for Development Holder Not Obligated to Construct Improvements . . . . Notice of Default to Mortgagee or Deed of Trust Holders; Right to Cure. . Failure of Holder to Complete Improvements Right of Agency to Cure Mortgage or Deed of Trust Default . . . [313] [314] [315] [316] (i) Paoe 1 2 2 2 3 3 4 5 5 6 9 10 10 10 11 12 13 14 14 14 15 15 15 16 16 17 19 I/J IV. A. B. C. V. A. B. C. D. VI. A. B. C. D. E. VII. [700] A. B. VIII. [800] IX. A. [400] [500] [600] [900] [401] [402] [403] [501] [502] [503] [504] [601] [602] 1. 2 . 3 . [606] [607] [608] 1. [701] [702] [901] USES OF SITE; AFFORDABILITY COVENANTS Uses - Covenants Running With the Maintenance of the Site . . . Effect of Violation of the Terms and provisions of this Owner Participation Agreement After Completion of Construction Land 19 22 23 GENERAL PROVISIONS Notices, Demands and Communication Between the Parties .... . Conflicts of Interest; Nonliability Enforced Delay; Extension of Times of Performance .... Inspection of Books and Records 24 25 25 26 DEFAULTS AND REMEDIES Defaults - - General . . Legal Actions .. . . [603] Institution of Legal Actions [604] Applicable Law . .. .. [605] Acceptance of Service of Process Rights and Remedies are Cumulative Inaction Not a Waiver of Default Remedies [609] Damages.. 27 28 28 28 28 29 29 29 29 SPECIAL PROVISIONS Submission of Documents to Agency for Approval . Successors in Interest 30 30 ENTIRE AGREEMENT, WAIVERS 31 TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY Time for Acceptance 32 ATTACHMENT NO. 1 - LEGAL DESCRIPTION ATTACHMENT NO.2 - HEALTH & SAFETY CODE SECTION 50052.5 ATTACHMENT NO. 3 - SCOPE OF DEVELOPMENT ATTACHMENT NO. 4 - AFFORDABILITY CRITERIA VERIFICATION WORKSHEET ATTACHMENT NO. 5 - MORTGAGE ASSISTANCE PROGRAM FINAL APPLICANT REPORT ATTACHMENT NO. 6 - SCHEDULE OF PERFORMANCE (ii) (, SBEOOOOl/YEOMAN OPA 06/16/94 10: 00 OWNER PARTICIPATION AGREEMENT THIS OWNER PARTICIPATION AGREEMENT is entered into this __ day of June, 1994, by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and YEOMAN ASSOCIATES, a sole proprietor (the "Participant"). Agency and Participant hereby agree as follows: 1. [100] SUBJECT OF AGREEMENT A. [101] Puroose of Aqreement The purpose of this Owner Participation Agreement is to effectuate the goals of the Agency with respect to the provision of low- and moderate-income housing throughout the City of San Bernardino (the "City"). In order to implement such goals, the Agency intends to provide assistance to Participant for the improvement of the Site, as hereinafter defined, which is locateg in proximity to and will benefit, among others, the Southeast Industrial Park Redevelopment Project Area and the Tri-City Redevelopment Project Area (collectively hereinafter referred to as the "Project Areas"). The completion of the improvements on the Site pursuant to this Owner Participation Agreement is in the vical and best interests of the City, and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws including the California Community Redevelopment Law. The Community Development t, Commission, acting on behalf of the Agency, has determined that the uses contemplated by this Owner Participation Agreement will benefit the low- and moderate-income housing needs of the City and the Project Areas, and has authorized the use of funds from the Agency's Low- and Moderate-Income Housing Fund. B. [102] The Redevelopment Plan The Redevelopment Plan for the Southeast Industrial Park Redevelopment Project was approved by Ordinance No. MC 565 of the Common Council of the City of San Bernardino and the Redevelopment Plan for the Tri-City Redevelopment Project was approved by Ordinance No. MC of the City Council of the City of San Bernardino. Both Redevelopment Plans shall be collectively hereinafter referred to as the "Redevelopment Plans" and shall be incorporated herein by reference. c. [103] The Site The Site is that certain real property generally located one block west of Mountain View Avenue on Coulston Street in the eastern portion of the City of San Bernardino and consists of those Assessor Parcels as more fully described in the "Legal Description of the Site," which is attached hereto as Attachment No.1 and is incorporated herein by this reference. D. [104] Parties to the Aqreement 1. [105] The Aqencv The Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and - 2 - ~ existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et sea.) The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency," as used in this Owner Participation Agreement, includes the Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. 2. [106] The Particioant The Participant is a sole proprietor which currently owns the Site or will have acquired the Site prior to the effective date of this Agreement. The principal office and mailing address of the Participant for purposes of this Owner Participation Agreement is Yeoman Associates, 10444 Corporate Drive, Suite F, Redlands, California, 92374, Attn: Dwight Yeoman. The Participant qualifies as an owner participant pursuant to California Community Redevelopment Law, the Redevelopment Plan and rules promulgated pursuant thereto pertaining to owner participation. - 3 - (;, 3. [107] prohibition Aqainst Chanqe in Ownership, Manaqement and Control of the Participant The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Owner Participation Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Owner Participation Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Owner Participation Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny at its discretion. In the event of such transfer or assignment: (1) the assignee shall expressly assume the obligations of the Participant pursuant to this Owner Participation Agreement in writing satisfactory to the Agency; (2) the original Participant shall remain fully responsible for the performance and liable for the obligations of the Participant pursuant to this Owner Participation Agreement; and (3) any guarantees provided to assure the performance of the Participant's obligations under this Owner Participation Agreement shall remain in full force and effect. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Owner Participation Agreement. - 4 - (p All of the terms, covenants and conditions of this Owner Participation Agreement shall be binding upon and shall inure to the benefit of the Participant and the permitted successors and assigns of the Participant. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 107 shall terminate and be of no further force and effect upon completion of all portions of the Project (as hereinafter defined). Nothing in this Section 107 shall act to restrict the sale of completed residential units developed on the Site to qualified purchasers if said sales are otherwise in compliance with the terms of this Owner Participation Agreement. 4. [108] Benefit to proiect Area Agency has determined that the development of the Site in accordance with this Owner Participation Agreement will eliminate blight and provide needed affordable low- and moderate-income housing to areas in proximity to the Project Areas which is needed due to the insufficiency of such housing within the Project Areas and the City generally. II. [200] A. AGENCY ASSISTANCE [201] Proiect The Participant shall develop the Site by causing the construction thereon of thirty-six (36) detached single family residential units (the "proj ect"), which shall be reserved for sale - 5 - t., to, and occupancy by, low- and moderate-income households, to be sold at affordable housing cost as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Attachment No.2 and incorporated herein by this reference. The Project shall be developed in three (3) phases with Phase I consisting of three (3) models and nine (9) homes and with Phase II and Phase III each consisting of twelve (12) homes, all as more fully described below and in the Scope of Development attached hereto as Attachment No. 3 and incorporated herein by this reference. The thirty six (36) units will consist of the following mix: Mix Square Feet Bedrooms Bathrooms Price 8 14 14 1,206 1,460 1,669 3 3 4 2 2 2 $112,990 $124,990 $129,990 B. [202] Financinq Assistance In order to assist in the development of the Project, the Agency shall provide financial assistance in a total amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000) (the "Agency Assistance") . Funds representing the Agency Assistance will be deposited into an account with the Project construction loan bank , or such other bank or lending institution as the Agency may deem appropriate in its sole discretion. Said bank or lending institution shall make disbursements upon receipt by such bank or lending institution, of appropriate documentation, as determined by the Agency, evidencing expenditures in connection with the construction of those certain off -site public improvements as - 6 - ~ described in Attachment No. 4 attached hereto and incorporated herein by this reference the timing of such disbursements shall be in accordance with the following schedule: (1) The Participant shall be entitled to draw down up to Eighty Four Thousand Dollars ($84,000) of the Agency Assistance upon the completion of Phase I homes as evidenced by: (a) the construction lender's written acknowledgement of the completion of the Phase I construction. (2) The Participant shall be entitled to draw down an additional Eighty Four Thousand Dollars ($84,000) of the Agency Assistance in connection with construction of Phase II homes as evidenced by: (a) the receipt into escrow of a deposit for purchase of all nine (9) Phase I homes; (b) the approval of home purchase financing in connection with all nine (9) Phase I homes; and (c) the construction lender's written acknowledgement of the completion of the Phase II construction. (3) The Participant shall be entitled to draw down the remaining Eighty Two Thousand Dollars ($82,000) of the Agency Assistance plus any accrued interest upon the completion of Phase III homes as evidenced by: - 7 - I. (a) the receipt into escrow of a deposit for purchase of all twelve (12) Phase II homes; (b) the approval of home purchase financing in connection with all twelve (12) phase II homes; and (c) the construction lender's written acknowledgement of the completion of the Phase III construction. No funds representing the Agency Assistance shall be deposited with the bank or lending institution or disbursed prior to the recordation of a construction loan for the Project in the amount of approximately $3,200,000. As consideration for the Agency Assistance, the Participant agrees that it shall cause nine (9) residential units to be reserved for acquisition and occupancy by low- and moderate- income households. The residential units which are to be reserved for sale at affordable cost to low- and moderate-income households in accordance with this Agreement shall hereinafter be referred to as the "Affordable Units". At least three (3) units in each Phase shall be reserved as Affordable Units provided, however, that in the event the Participant reserves more than three (3) units i~ a prior Phase its obligation with respect to the reservation of Affordable Units in subsequent phases shall be adjusted accordingly. - 8 - ~ Subject to the provisions of Section 503 hereof and to any other written extensions as may be granted by the Executive Director in his or her sole discretion, if any moneys representing the Agency Assistance have not been used or encumbered in connection with the construction of the public off-site improvements described on Attachment No.4 on or after November 15, 1996, such moneys shall be returned to the Agency for redeposit into the Agency's Low and Moderate Income Housing Fund and the Agency will have no further obligation to provide any additional assistance to the Participant. c. (203] Affordable Housinq Covenants In consideration for the provision of the Agency Assistance, the Participant shall make the Affordable Units available to households who are of low- and moderate-income as defined in Health & Safety Code Section 50093, as amended from time to time, and who seek to purchase residences to be constructed on the Site at affordable housing cost as defined in Health and Safety Code Section 50052.5, as may be amended from time to time, as attached hereto as Attachment No.2. The Agency shall provide to the Participant the parameters of such ownership, including income limits adjusted for family size and the affordable housing cost eligibility criteria that shall apply to purchase of each residential unit. The Participant agrees to be bound by all limitations to be established by the Agency and/or any Conditions and Covenants and Restrictions as may be imposed by the Agency applicable to the Affordable Units, as to both income limits and affordability criteria for the residences on the Site and shall - 9 - ~ provide the Agency with all relevant information, as may be requested from time to time by the Agency, to ensure compliance with this Section. The Participant shall be responsible for ensuring that all documents required of such low- and moderate-income households are executed and forwarded to the Agency, including, but not limited to, the Affordability Criteria Verification Worksheet and Mortgage Assistance Program Final Applicant Report attached to this Agreement as Attachments No. 5 and 6, respectively. IMPROVEMENT OF THE SITE [301] Scope of Development The Site shall be developed by Participant as more fully provided in the "Scope of Development," which is attached hereto as Attachment No. 3 and incorporated herein by this reference. III. [300] A. B. [302] Cost of Construction The cost of constructing the Project shall be borne solely by Participant. The Agency shall have no obligations, other than as expressly set forth herein, with respect to the funding of the Project. c. [303] Construction Schedule Upon execution of this Owner Participation Agreement, Participant will promptly begin and diligently prosecute to completion the construction of the Project. Participant shall begin and complete all construction and development of the Project - 10 - ~ within the times specified in the "Schedule of Performance" which is attached hereto as Attachment No. 7 and incorporated herein. Participant shall strictly conform to all time requirements and limitations set forth in this Owner Participation Agreement. Any non-conformance shall be governed under Section VI, "DEFAULTS AND REMEDIES." D. [304] Bodilv In;ury and Property Damaqe Insurance Participant shall defend, assume all responsibility for and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of Participant's activities under this Owner Participation Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Owner Participation Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency from claims for such damages until two (2) years after the completion of the Project. Participant shall furnish a certificate of insurance from an insurance carrier rated by A. M. Best as "A" or better, countersigned by an authorized agent of the insurance carrier on a - 11 - ~ form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor and/or subcontractor with whom it has contracted for the performance of work on the Site or otherwise pursuant to this Owner Participation Agreement carries workers' compensation insurance as required by law. E. [305] Citv and Other Governmental Aqency Permits Before funding of the Agency Assistance or any portion thereof and/or commencement of the Project or other construction or development of any buildings, structures or other works of improvement upon the Site, Participant shall, at its own expense, secure or cause to be secured any and all permits for all necessary - 12 - ~ off-site improvements which may be required by the City or any other governmental agency having jurisdiction over such construction, development or work. Nothing contained in this Owner Participation Agreement shall be deemed to be an approval by the City of any application or permit required to be obtained by Participant from the City. F. [306] Riahts of Access For the purpose of assuring compliance with this Owner Participation Agreement, representatives of Agency and the City shall have the right of access to the Site, without charges or fees, at normal construction hours during the period of work for the purposes of this Owner Participation Agreement, including, but not limited to, the inspection of the work being performed in constructing the improvements, so long as they comply with all safety rules. Such representatives of Agency or of the City shall be those who are so identified in writing by the Executive Director of Agency. Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 306 and resulting from the gross negligence or willful misconduct of the . City or Agency. This Section 306 shall not be deemed to diminish or limit any rights which the City or Agency may have by operation of law irrespective of this Agreement. - 13 - I, G. [307] Local, State and Federal Laws Participant shall carry out the construction of the Project and all related activities on the Site in conformity with all applicable laws, including all applicable federal and state labor standards; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws, rules or standards. H. [308] Antidiscrimination Durinq Construction Participant, for itself and successors and assigns, agrees that in the construction of the improvements provided for in this Owner Participation Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. I. [309] Taxes, Assessments, Encumbrances and Liens Prior to the issuance of a Certificate of Occupancy for the last residential unit developed on the Site, Participant shall not place or allow to be placed on the Site or any part thereof any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency - 14 - III Prohibition Aaainst Transfer of the Site. the Buildinas or Structures Thereon and Assianment of Aareement Prior to the issuance of a Certificate of Occupancy for the last residential unit developed on the Site, Participant shall not, except as permitted by this Owner Participation Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or J. [310] any part of the Site or of the buildings or structures on the Site. This prohibition shall not be deemed to prevent a transfer expressly permitted pursuant to Section 107 of this Owner Participation Agreement, or the granting of temporary or permanent easements or permits to facilitate the development of the Site. K. [311] Mortaaae. Deed of Trust. Sale and Lease-Back Financina: Riahts of Holders 1. [312] No Encumbrances Except Mortaaaes. Deeds of Trust or Sale and Lease-Back for Development Mortgages and deeds of trust are to be permitted before completion of the Project but only for the purposes of securing a loan of funds to be used in financing the development of the Site and any other purposes appropriate in connection with the development under this Owner Participation Agreement. Participant shall not enter into any other conveyance or lien for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is given to a bank, savings and loan association, or other similar - 15 - ~ lending institution and the terms of said financing are reasonably acceptable to Agency. The form of approval by Agency shall be in writing which references this Section 312, executed by the Executive Director of the Agency. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. 2. [313] Holder Not Obliaated to Construct Improvements The holder of any mortgage or deed of trust authorized by this Owner Participation Agreement shall not be obligated by the provisions of this Owner Participation Agreement to construct or complete the Project or to guarantee such construction or completion. Nothing in this Owner Participation Agreement shall be deemed to construe, permit or authorize any such holder to devote the Site to any uses or to construct any improvements thereon, other than those uses provided for or authorized by this Owner Participation Agreement. 3. [314] Notice of Default to Mortaaaee or Deed of Trust Holders; Riaht to Cure With respect to any mortgage or deed of trust granted'by Participant as provided herein, whenever Agency shall deliver any notice or demand to Participant with respect to any breach or default by Participant in completion of the construction of the Project, Agency shall at the same time deliver to each holder of record of any mortgage or deed of trust authorized by this Owner - 16 - & Participation Agreement a copy of such notice or demand. Each such holder shall (insofar as the rights of Agency are concerned) have the right, at its option, within thirty (30) days after the receipt of this notice, to cure or remedy or commence to cure or remedy any such default and to add the cost thereof to the mortgage debt and the lien of its mortgage. Nothing contained in this Owner Participation Agreement shall be deemed to permit or authorize such holder to undertake or continue the construction or completion of the Project (beyond the extent necessary to conserve or protect the Project or construction already made) without first having expressly assumed the Participant's obligations to Agency by written agreement satisfactory to Agency. The holder, in that event, must agree to complete, in the manner provided in this Owner Participation Agreement, the Project to which the lien or title of such holder relates, and submit evidence satisfactory to Agency that it has the qualifications and financial responsibility necessary to perform such obligations. 4 . [315] Failure of Holder to Complete Improvements In any case where, thirty (30) days after default by the Participant in completion of construction of Project under this Owner Participation Agreement, the holder of any mortgage or deed of trust creating a lien or encumbrance upon the Site or any part thereof has not exercised the option to construct or if it has exercised the option and has not proceeded diligently with construction, Agency may purchase the mortgage or deed of trust by payment to the holder of the amount of the unpaid mortgage or deed - 17 - ~ of trust debt, including principal and interest and all other sums secured by the mortgage or deed of trust. If the ownership of the Site or any part thereof has vested in the holder, Agency, if it so desires, shall be entitled to a conveyance from the holder to Agency upon payment to the holder of an amount equal to the sum of the following: a. The unpaid mortgage or deed of trust debt at the time title became vested in the holder (less all appropriate credits, including those resulting from collection and application of rentals and other income received during foreclosure proceedings) ; b. All expenses with respect to foreclosure; c. The net expense, if any (exclusive of general overhead), incurred by the holder as a direct result of the subsequent management of the Site or part thereof; d. The costs of any portion of the proj ect completed by such holder; and e. An amount equivalent to the interest that would have . accrued on the aggregate of such amounts had all such amounts become part of the mortgage or deed of trust debt and such debt had continued in existence to the date of payment by Agency; less f. Any income derived by the lender from operations conducted on the Site (the receipt of principal and interest - 18 - &, payments in the ordinary course of business shall not constitute income for the purposes of this subsection f) . 5. [316] Riqht of Aqencv to Cure Mortqaqe or Deed of Trust Default In the event of a mortgage or deed of trust default or breach by Participant prior to the completion of any part thereof and the holder of any mortgage or deed of trust has not exercised its option to complete construction, Agency may cure the default. In such event, Agency shall be entitled to reimbursement from Participant of all proper costs and expenses incurred by Agency in curing such default. USES OF SITE; AFFORDABILITY COVENANTS [401] Uses - Covenants Runninq With the Land Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to the Site or any part thereof, that, except as otherwise herein provided, for a period of ten (10) years commencing on the date of the sale of any of the Affordable Units each of the Affordable Units will be devoted to and available for sale solely to persons or families with an income which are low and moderate to very low, as those terms are defined in Health and Safety Code Sections 50093 (low- and moderate-income) and 50105 (very low income), with sales costs of each residential unit to be at an affordable housing cost (as such term is defined in Health and Safety Code Section 50052.5). [400] A. IV. - 19 - (, The foregoing covenant shall run with the land for ten (10) years commencing on the date that each Affordable unit is sold except to the extent the Agency's investment of low- and moderate- income funds under this Owner Participation Agreement is otherwise protected. The Participant further covenants and warrants that Participant shall develop the public and private improvements on the Site in accordance with the Scope of Development. Participant covenants to develop the Site in conformity with all applicable laws. The covenants of this paragraph shall run with the land. Participant covenants by and successors in interest that there shall for itself and any be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enj oyment of the Site, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Site. The foregoing covenants shall run with the land. All deeds, leases or contracts pertaining to the Site shall contain or be subject to substantially the following nondiscrimination or non-segregation clauses: - 20 - (p 1. In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, , sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." 2. In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, that this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, handicap, age, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enj oyment sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practices or practices of discrimination or - 21 - t, segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." 3. In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enj oyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises." B. [402] Maintenance of the Site Participant shall, until sale of all of the thirty-six (36) residential units, maintain any portion of the Project which remains unsold and all other improvements on the Site and shall keep the Site free from any accumulation of debris or waste materials. Participant further agrees to maintain the Site in a neat and attractive manner until construction of the improvements described in this Owner Participation Agreement is complete so as not to, in the reasonable determination of an appropriate officer of the City, be a public nuisance or be detrimental to the health, - 22 - ~ safety and welfare of the public and agrees that in the event Participant fails to do so, Agency may enter upon the Site for the purposes of performing necessary and desirable maintenance, that Participant will be responsible for the cost of any such maintenance undertaken by Agency, which shall be paid within thirty (30) days after receipt by Participant of written demand therefor. C. [403] Effect of Violation of the Terms and provisions of this Owner Participation Aqreement After Completion of Construction The covenants established in this Owner Participation Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Owner Participation Agreement shall remain in effect until the latest termination date of the Redevelopment Plans unless an earlier date is specified. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Owner Participation Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Owner Participation Agreement and the covenants running with the land have been provided. The Agreement and the covenants shall run in favor of the Agency, without regard to whether Agency has - 23 - & been, remains or is an owner of any land or interest therein in the Site or in the Project Area. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Owner Participation Agreement and covenants may be entitled. v. GENERAL PROVISIONS [501] Notices. Demands the Parties Written notices, demands and communications between Agency and Participant shall be sufficiently given if delivered by hand (and a receipt therefor is obtained or is refused to be given) or dispatched by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of Agency and Participant. Such written notices, demands and communications may be sent in the same manner to such other addresses as such party may from time to time designate by mail as provided in this Section 501. [500] A. and Communications Between Any written notice, demand or communication shall be deemed received immediately if delivered by hand and shall be deemed received on the tenth day from the date it is postmarked if delivered by registered or certified mail. - 24 - (, B. [502] Conflicts of Interest; Nonliabilitv No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Owner Participation Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participant, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Owner Participation Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Owner Participation Agreement. C. [503] Enforced Delav; Extension of Times of Performance In addition to specific provisions of this Owner Participation Agreement, performance by either party hereunder shall not be deemed to be in default, and all performance and other dates specified in this Owner Participation Agreement shall be extended, where delays or defaults are due to: war: insurrections: floods: earthquakes: fires: casualties: acts of God: acts of the public enemy: freight embargoes: governmental restrictions or - 25 - ill priority; litigation; unusually severe weather; or acts or failures to act of the City or any other public or governmental agency or entity (other than the acts or failures to act of Agency which shall not excuse performance by Agency) . Notwithstanding anything to the contrary in this Owner Participation Agreement, an extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of performance under this Owner Participation Agreement may also be extended in writing by the mutual agreement of Agency and Participant. Participant is not entitled pursuant to this Section 503 to an automatic extension of time to perform because of past, present, or future difficulty in obtaining suitable temporary or permanent financing for the Site. Should such financing not be obtained, it is the sole responsibility of the Participant to request an extension of time prior to default under the Schedule of Performance. D. [504] Inspection of Books and Records Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to the Site as pertinent to the purposes of this Owner Participation Agreement. - 26 - fA VI. DEFAULTS AND REMEDIES [601] Defaults - - General Any of the following shall be considered an event of default hereunder: (a) Failure to construct the Project within the time schedules as provided in the Schedule of Performance attached hereto as Attachment No.7. (b) Failure or delay by any party to perform any other term or provision of this Owner Participation Agreement. [600] A. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. The party in default shall immediately commence to remedy, cure or correct such default within said thirty (30) day period. However, if in the reasonable opinion of the inj ured party said failure cannot be corrected within thirty (30) days after such notice, the injured party shall not unreasonably withhold its consent to an extension of time, if such corrective action is instituted by the defaulting party within said thirty (30) day period and diligently pursued until such failure is corrected. Except as required to protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. The Agency, in its discretion, may waive any of its rights hereunder, however, such waiver shall not be valid unless in - 27 - (, writing and signed by a duly authorized representation of the Agency. Upon expiration of the thirty (30) day notice period, the injured party, at its option, may declare all indebtedness and obligations secured hereby due and payable with or without notice of acceleration. B. [602] Leqal Actions 1. [603] Institution of Leqal Actions In addition to any other rights or remedies hereunder, Agency or Participant may institute legal action to cure, correct or remedy any default, to recover damages for any default, or to obtain any other remedy, including, but not limited to, specific performance, consistent with the purpose of this Owner Participation Agreement. Any legal actions initiated pursuant to this Owner Participation Agreement or otherwise with respect to this subject matter must be instituted in the Superior Court of the County of San Bernardino, State of California, or in an appropriate municipal court in that county. 2. [604] Applicable Law The laws of the State of California shall govern the interpretation and enforcement of this Owner Participation Agreement. 3. [605] Acceptance of Service of Process In the event that any legal action is commenced by any party against another party, service of process on such party shall be made by personal service upon such party or in such other manner - 28 - ill as may be provided by law, and shall be valid whether made within or without the State of California. C. [606] Riqhts and Remedies are Cumulative Except as otherwise expressly stated in this Owner Participation Agreement, the rights and remedies of the parties are cumulative, and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by any other party. D. [607] Inaction Not a Waiver of Default Any failures or delays by any party in asserting any of its right and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies, or deprive any party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. E. [608] Remedies 1. [609] Damaqes Prior to the completion of the Project, if either Participant or Agency defaults with regard to any of the provisions of this Owner Participation Agreement, the non-defaulting party shall serve written notice of such default upon the defaulting party. If the default is not cured or if a cure has not been commenced and is being diligently pursued to completion by the defaulting party within thirty (30) days after service of the - 29 - ~ notice of default, the defaulting party shall be liable to the other for any damages caused by such default, and the non- defaulting party shall have the right to seek specific performance and such other remedies as are available in law or equity. VII. SPECIAL PROVISIONS [701] Submission of Documents to Aqencv for Approval Whenever this Owner Participation Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. [700] A. B. [702] Successors in Interest The terms, covenants, conditions and restrictions of this Owner Participation Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. - 30 - ~ VIII. [800] ENTIRE AGREEMENT, WAIVERS This Owner Participation Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Owner Participation Agreement includes Attachments 1 through 7, which together with this Owner Participation Agreement constitute the entire understanding and agreement of the parties. No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Owner Participation Agreement. This Owner Participation Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Owner Participation Agreement must be in writing by the appropriate authorities of the Agency and Participant, and all amendments hereto must be in writing by the appropriate authorities of Agency and Participant, except that the Executive Director of Agency may agree to non- substantive changes hereto with concurrence by Agency Counsel. Each individual signing below represents and warrants that he has the authority to execute this Owner Participation Agreement on behalf of and bind the party he purports to represent. - 31 - (p TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY [901] Time for Acceptance This Owner Participation Agreement, when executed by Participant and delivered to Agency, must be authorized, executed and delivered by Agency on or before thirty (30) days after signing and delivery of this Owner Participation Agreement by Participant or this Owner Participation Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Owner Participation Agreement. The date of this Owner Participation Agreement shall be the date when it shall have been signed by the Agency as evidenced by the date first above shown. IX. [900] A. - 32 - ~ IN WITNESS WHEREOF, Agency and Participant have executed this Owner Participation Agreement by their duly authorized officers and have caused their corporate seals or articles of incorporation to be hereunto affixed and attested as of the day first above shown. "Agency" REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SEAL By: Tom Minor Chairman APPROVED AS TO FORM AND LEGAL CONTENT: BY:~ Special Agency Counsel By: Kenneth J. Henderson Secretary "Participant" SEAL Name: SBEO\OOOl\YEOMAN OPA 06\16\94 10:00 jrf - 33 - (, STATE OF CALIFORNIA COUNTY OF On before me, (here insert name and title of the officer), personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) IP STATE OF CALIFORNIA COUNTY OF On before me, (here insert name and title of the officer), personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) it; STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On June 20, 1994, before me, Debra A. Fields, personally appeared Dwight Yeoman, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Signature (lnch () Z/;l;>~ - , (Seal) r ~ ~ ~ ~ - . ~ ~ . . - - ~f ~ DE8IlAA. FIElDS - COMM." 9Q6675 i .'. NoIC11'f NlIc - California I . LOS ANGELES COUNTY I J ~ ~ _ _ ~~~~J~~.1~7~ (p STATE OF CALIFORNIA COUNTY OF ) ) On before me, (here insert name and title of the officer), personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person (s) whose name (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) IP ATTACHMENT NO. 1 LEGAL DESCRIPTION OF THE SITE LEGAL DESCRIPTION: A portion of Lot 1, Bock 72, Rancho San Bernardino, City of San Bernardino, County of San Bernardino, State of California, as per Plat Recorded in Book 7 of Maps, Page 2, Records of said County. (p ATTACHMENT NO. 2 HEALTH AND SAFETY CODE SECTION 50052.5 /:; ATTACHMENT NO. 3 SCOPE OF DEVELOPMENT I. GENERAL DESCRIPTION The Site is specifically described in the Legal Description (Attachment No.1) pursuant to Section 103 of this Owner Participation Agreement. II. DEVELOPMENT Participant shall develop the Site by constructing homes of varying square footage based upon the following floor plans: MIX SQ. FT. BEDROOMS BATHROOMS HEIGHT SALES PRICE 8 1,206 3 2 1 story $112,990 14 1,460 3 2 1 story $124,990 14 1,669 4 2 2 story $129,990 Each home shall have full amenities and shall include the following: tile roofs, vaulted ceilings, tile entries, oak cabinets, front yard landscaping and automatic sprinklers, side and rear yard fencing and ceramic tile countertops. All of the improvements to be provided by the Participant on the Site constitute the "Project." The Participant shall commence and complete the Project by the respective times established therefor in the Schedule of Performance (Attachment No.7) . III. DEVELOPMENT STANDARDS The Project shall be developed in accordance with applicable City, FHA, VA & UBC building and safety codes. &, IV. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Site, and the suitability of the Site for the Project. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all actions necessary to render the Site entirely suitable for such development. Participant has undertaken all investigation of the Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the development of Project. V. FRONT ELEVATIONS The exterior appearance of the homes occupying the Site shall resemble in appearance the buildings contained in the Schedules as previously submitted to the Agency. (p ATTACHMENT NO. 4 AFFORDABILITY CRITERIA VERIFICATION WORKSHEET ~ ATTACHMENT NO. 5 MORTGAGE ASSISTANCE PROGRAM FINAL APPLICANT'S REPORT /, ATTACHMENT NO. 6 SCHEDULE OF PERFORMANCE 1. Submission of Tentative Tract Prior to July 15, 1994 Map and Grading Plans to the Planning and Building Services Department 2. Planning Commission Approval Prior to November 15, 1994 of Tentative Tract Map (5 Months) 3. Approval of Final Map & Prior to February 15, 1995 Improvement Plans (3 Months) 4. Record Final Map & Prior to March 15, 1995 Construction Loan (1 Month) 5. Obtain Grading Permit Prior to March 15, 1995 6. Approval of Building plans Prior to May 15, 1995 Obtain Building Permits Begin Construction of Phase I (2 Months) 7. Completion of Phase I Prior to October 15, 1995 (5 Months) 8. First Occupancy Prior to October 15, 1995 for Phase I 9. Begin Construction Prior to October 15, 1994* Phase II 10. Completion of Phase II Prior to March 15, 1996* (5 Months) 11. First Occupancy of Prior to March 15, 1996* phase II 12. Begin Construction of Prior to March 15, 1996* phase III (5 Months) 13. Completion of Phase III Prior to August 15, 1996* (5 Months) 14. First Occupancy of Prior to August 15, 1996* Phase III 15. Final Occupancy of Prior to November 15, 1996* phase III *Estimated date can vary and is contingent upon sales rate of prior Phases. (, ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIl. ACTION From: TIMOTHY C. STEINHAUS Administrator Subject: CIVIC LIGHT OPERA Date: June 28, 1994 -------~~----------------------------------------------------------------------------------.------------------------------------------------- SvnoDsfs of Previous Commission/Council/Committee Action(s): On April 7, 1994, the Community Development Commission approved purchase of the California Theater for $300,000 cash subject to specific contractual terms. Synopsis continued on next page... ------------------------------------------------------------------------------------------------------------------------------- Recommended Motlon(!;): (Communltv Develonment Commission) (RedeveloDment Committee Recommendation) MOTION A: That the Community Development Commission approve a Property Acquisition Agreement for the purchase of the California Theater by the Redevelopment Agency. Motions continued on n . STEINHAUS Administrator Phone: Ward(s): 5081 Contact Person(s): Timothv C. Steinhaus Project Arca(s): Supporting Data Attached: Staff Report: Letter from Susan Feller dated June 23. 1994: Prooertv Acquisition A.reement: Proposal from the Robert Stein Group: Pro.posal from R.F. McCann & Companv FUNDING REQUIREMENTS: Amount: $ Budget Authority: Source: Commission/Council Note~: TCS:SWP:opera(dle) COMMISSION MEETING AGENDA Meeting Date: 07/05/1994 Agenda Item Number: ~ REQUEST FOR COMMISSION/COUNCIL/COMMITTEE ACTION(S) SUBJ: CIVIC LIGHT OPERA June 28, 1994 Page Number 2 Svnonsis of Previou!il Commission/Council/Committee Ar.tion(s): On June 23,1994 the Redevelopment Committee recommended the Commission reaffinn purchase of the California Theater approve a $24,000 contract with RF. McCann and Company to perfonn survey, report and planning services for the rehabilitation of the California Theater. R~commended Motionls) Continued: (No Recommendation Submitted hv Redevelooment Committee) MOTION B: That the Community Development Commission approve a contract with The Robert Stein Group for interim operational management of the California Theater for the following compensation: 1. One-time fee of $19,000; 2. Monthly fee of $500 ($6,000 yearly); 3. Ten percent (10%) of any rental or outside income revenues from theater operations; and further, that the Economic Development Agency budget be increased accordingly. lRedevelonment Committee Recommendation) MOTION C: That the Community Development Commission approve a contract with RF. McCann & Company for $24,000, to perfonn survey, report and planning services for the rehabilitation of the California Theater; and further that the Economic Development Agency Budget be increased accordingly. ~RR_____.____._____"""""""...".."_____________""_"""",,...._____...._...._.....................................__........................................................................__ TCS:SWP:opera(dle) COMMISSION MEETING AGENDA Meeting Date: 07/05/1994 Agenda Item Number: 2- ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STAFF REPORT SAN BERNARDINO f:IVIC UGHT OPERA On April 7, 1994 the Commission approved purchase of the California Theater for $300,000 subject to specific contractual teons. In anticipation of such acquisition, staff solicited the services and proposed the Wring of a temporary manager/operator of the theater and a professional fion to assess the rehabilitation needs of the structure. Mter consideration of the related staff report (attached) at its June 20, 1994 meeting, the Commission referred the item to the Redevelopment Committee for further in-{iepth consideration. The Redevelopment Committee considered these three issues in regular session on June 23, 1994 and voted to recommend the Commission reaffion acquisition of the California Theater and hire a consultant to assess the rehabilitation needs of the theater. A letter (attached) dated June 23 from Susan Feller, Executive Director, San Bernardino Symphony, indicating she is "in the process of foonulating a business plan for management of the California Theater by a Community-based organization" was presented to the Committee by Councilman Hernandez. Mter considerable discussion of the staff recommendation about the Robert Stein Group operating the Theater on an interim basis, the Committee opted to make no recommendation relative to the hiring of an interim operational manager for the California Theater. Staff Recommends approval of the foon motion. TIMOTHY C. STEINHAUS, Administrator Economic Development Agency -------......................--..........................................................................................-..................................................................................................--..-.............. TCS:SWP:opera(dle) COMMISSION MEETING AGENDA Meeting Date: 07/05/1994 Agenda Item Number: 2-- '. SUSAN FELLER . 3356 PAJlKIIDE DRIVE SAN BER.NARDINO, CA 92404 Office: (909) 381 -5388 Home: (909) 883-7578 / June 23, 1994 Councilman Ralph Hernandez City of San Bernardino: 300 North "D" Street San Bernardino, CA 92410: Dear Councilman Hernandez: At your request, I am in the process of formulating a business plan for management of the California Theatre by a community-based non-profit organization, The plan will be completed by July I and will encompass the following: 'Rationale for the City's involvement 'Economic impact analysis of the theatre and its role in downtown revitalization 'Budget foroperations/capital improvements 'Operational model for public/private partnership , 'Financial development plan for raising capital funds 'Marketing plan for.theatre 'Programming plan to ensure use of the theatre for 150-200 events per year .Volunteer recruitment plan 'Implementation procedures and timelines .Job descriptions for key personnel With an anticipated $5 million in renovation costs and an operating deficit which could exceed $250,000 per year, ownership of the theatre represents considerable risk for the City. However, since the theatre is a key element in the creation of a downtown cultural district, it is imperative that it receive the highest level of support. As the most unique performing facility in a 45-mile radius, the theatre not only can help San Bernardino compete for economic 7 Page 2 development by reinvigorating downtown, it can be responsible for bringing more than 200,000 people do~ntown each year. If managed properly, the theatre can easily have an economic impaGt which exceeds $12,000,000 per year. To recognize this potential, the theatre requires management and staffing that is innovative, flexible, entrepreneurial and efficient. A national survey of the operating structures of similar theaters indicates that while many municipalities own theaters, they generally do not operate them. Rather they are operated by non-profit organizations whose members represent a broad range of expertise and interest, including business owners, artists and arts administrators, media people, and other community leaders. The non-profit group retains professional staff to run the theatre and facilitate administrative functions including fund raising, marketing and programming. Specifically, the non-pro fit's goals and objectives would include: , 1. Developing strategies for the implementation of the renovation, _ fund-raising activities and management of the theatre in such a manner that it is not a liability to the City. 2. Soliciting community involvement through the creation of a volunteer corps, the "Friends of the California Theatre". 3. Overseeing the renovation procedures. 4. Raising funds for capital improvements, operations, and an endowment program through the solicitation of foundation grants, governmental grants, corporate sponsorship, and community support. 5. Creating an "Arts Senate" made up of core theater tenants to serve as an advisory committee on scheduling, promotion and increasing the use of the theatre. 6. Developing stringent financial planning and control procedures. 7. Planning and managing quality, nationally recognized, programs to maximize the impact of the theatre on downtown redevelopment. I 8. Supervising physical plant management including custodial services and ongoing maintenance and repairs as well as concession sales. 7 Page 3 Under this public/private venture, the city can continue to own the facility and retain effective control over the project while reducing its financial exposure. Equally important, the revitalization of the theatre by a non-profit group will allow increased access to a variety of funding sources and will help generate significant community support. The California Theatre is a wonderful asset for San Bernardino and its renewal will provide the community with a: sense of continuity and heritage. I greatly appreciate the opportunity you have given me to express my hopes and aspiriations for is future and pledge to you my commitment to this project. Sincerely, \. 7 I EC.\.. _,OMIC DEVELOPMENT AGEN _ Y j, OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION FROM: TIMOTHY C. STEINHAUS Agency Administrator SUBJECT: SAN BERNARDINO CIVIC UGHT OPERA DATE: June 13, 1994 -------------..------------------------------------------------------------------------------------------------------------------ Synopsis ofPreviou. CommissionlCounciUCommittee Action{s): The Community Development Commission has previously discussed in Closed Session litigation and acquisition issues related to the San Bernardino Civic Light Opera Association (SBCLOA) and the California Theater. On April 7. 1994, the Community Development Commission approved a purchase of the California Theater for $300,000 cash; the Civic Light Opera would execute a new note for $100,000 plus accrued interest, bearing a rate of 6%. ----------------------------------------------------------------------------------------------------------------------------------- Recommended Motion{s): (Communitv Development Commission) MOTION A: That the Community Development Commission approve a Property Acquisition Agreement for the purchase of the California Theater by the Redevelopment Agency. Motion. Continued to Next pa~e . . . TIMOTHY C. STEINHAUS Agency Administrator ---------------------------------------------------------------------------------------------------------------------..------------ Contact Person(s):Kenneth 1. Henderson Project Area(s):AIl Supporting Data Attached: Phone: 5081 Ward(s): All Staff Reoort' Prooertv Acauisition Al!I'eement' Prooosal from the Robert Stein Gratio' Pronosal from R.F McCann & Comnanv FUNDING REQUIREMENTS: Amount: The Robert Stein GrODO - $19 000 one-time Dlus $500 Der mODth olus 10% of all rental and outside income revenues' R.F McCann & ComDanv - $24 100 one-time: Source: Bond Proceeds Budget Authority: Requested -----------------------.--------------.--.--.--.-------------.--------------.----------------.--------------.-..------------...-------- Commission/Council Notes: ----------------------------------------------------------------------------------------------------------------------- KJH:JMW:adw:sbclo:cdc COMMISSION MEETING AGENDA MEETING DATE: 06/20/1994 Agenda Item Number: L 7 REQUEST FOR COMMISSION/". JNCIL ACTION San Bernardino Civic Light Opera Association June 20, 1994 Page Nwnber -2- --.---------------------------------------------------------------------------------------------------.-------------------- Recommended Motion's) Continued: (Community Develooment Commission) MOTION B: That the Community Development Commission approve a contract with The Robert Stein Group for interim operational management of the California Theater for the following compensation: 1. One-time fee of$19,000 2. Monthly fee of $500 ($6,000 yearly) 3. Ten percent (10%) of any rental or outside income revenues from theater operations; and Further, that the Economic Development Agency budget be increased accordingly. MOTION C: That the Community Development Commission approve a contract with R.F. McCann & Company for $24,100, to perform survey, report and planning services for the rehabilitation of the California Theatre; Further, that the Economic Development Agency budget be increased accordingly. ----------------------------------------------------------------- --------------------------------------------- KJH:JMW:adw:sbclo:cdc COMMISSION MEETING AGENDA MEETING DATE: 06/20/1994 Agenda Item Number: (. 7 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ Civic Light Opera On April 7, 1994, the Community Development Commission approved the acquisition of the California Theater by the Redevelopment Agency based upon the following deal points: Price $300,000 Terms All Cash The $103,000 outstanding loan balance owed to Agency by the San Bernardino Civic Light Opera Association (SBCLOA) to be deferred for two years, with the interest rate reduced from ten (10) percent to six (6) percent. SBCLOA will make twenty-four interest only payments to the Agency over the two-year deferral period. After the expiration of the two-year deferral period, SBCLOA will make principalllllii interest payments to Agency commencing with month twenty-five (25) and ending with month sixty (60). SBCLOA to receive free rent up to a maximum of$100,000 per year for two years, with the understanding that any unused portion of the rent subsidy in year one will !1Q1 be carried over into year two. No SBCLOA Board of Director loans or management fees to be paid prior to the Agency loan to the SBCLOA being fully and completely extinguished. The SBCLOA will attempt to sell its "E" Street and Cajon Boulevard properties with the understanding that the proceeds of such sales will be applied to the outstanding balance of the Agency loan to SBCLOA. Additionally, the Agency will not invoke a "due on sale" clause for the portion of the Agency loan to SBCLOA, ifany, not paid off by the sale of the "E" Street and Cajon Boulevard properties. Agency Special Counsel has prepared a Property Acquisition Agreement (see attached copy), which incorporates the foregoing provisions. Also included is a stipulation whereunder the SBCLOA will transfer its liquor license to the Agency upon remittance of a $500 fee to the Alcoholic Beverage Control Board. The license will subsequently be transferred to whatever entity is chosen to carry out the operational management of the California Theater. ----------------------------------------------------------------------------------------------------------------------- IUH:1MW:adw:sbclo:cdc COMMISSION MEETING AGENDA MEETING DATE: 06/20/1994 Agenda Item Number: J 7 ECONOMIC DEVELOPMb..T AGENCY STAFF REPORT San Bernardino Civic Light Opera June 13, 1994 Page Number -2- --------------------------------------------- Staff has prepared a Request for Qualifications from firms that have the credentials to oversee the operational management of the California Theatre on a permanent basis. This will be advertised in the very near future. In the meantime, however, there is a need for a firm to manage the day-to- day operations of the theater on a temporary basis. Along this line, staff has identified The Robert Stein Group from Pasadena as being a well-qualified organization which is ready, willing and able to take over the day-to-day management of the theater on an interim basis. The attached proposal sets forth the particulars of the terms and conditions under which The Robert Stein Group would be able to operate the facility. The following excerpts (1, II and III) from the proposal breaks down the scope of services and suggested fees: I. Transition Management and Operation: Items A 1. Document a simple business plan. 2. Develop an interim, line item budget based on a "no risk" operation offacility. 3. Develop a working system of controls to ensure #2 above. 4. Propose a schedule of maintenance. 5. Establish a simple plan for supplementary sources of income, with an emphasis on "lobby sales", including souvenirs and refreshments. 6. Develop a calendar of event booking on a short term basis-possibly three to six months, and another longer range calendar covering the next year. 7. Develop and recommend a program, working within the local arts community, of promoting local area events. 8. Review the rental rate structure of the facility. ItemsB 1. Select interim employee base a. one full-time box office person who can also act as an on-site administrator. b. house manager - employed for show nights and technical days only. c. technical director - employed for show nights and technical days only. 2. Oversee operations, including on-site visits and "hands on," supervision. ~-------------------------------------------------------------------------------.--.--.------------------------------ KJH:JMW:adw:sbclo:cdc COMMISSION MEETING AGENDA MEETING DATE: 06/20/1994 Agenda Item Number: I. 7 ECONOMIC DEVELOPM- . T AGENCY STAFF REPORT San Bernardino Civic Light Opera June 13, 1994 Page Number -3- II. Transition Booking and Programming: The California Theater must, due to economic considerations, be in the position of minimum to no-risk operation. In order to attain that goal, it must be marketed to outside promoters, and should be available for and marketed to concert promoters, play producers, television and motion picture production companies and local arts groups. Through this approach, the theater will only be "lit" when there is activity, and the only activities will be prepaid by others. III. Fees for the Services: 1. Transition Management and Operation Items A $19,000.00 2. Transition Management and Operation Items B $500.00 per month 3. Transition Booking and Programming (only offered in the event that Management deal is consummated) 10% of any rental and outside income paid monthly It should be understood that representatives of The Robert Stein Group have physically inspected the California Theater and noted a number of repair/renovation/maintenance items which should be performed by the Agency if the theater is to achieve its maximum potential. R.F. McCann & Company, a well-qualified theatre architecture and design firm, has proposed (see attached) to perform survey, report and planning services to assess renovation needs for a fee of $24, 100. In summary, the form motions will allow the Agency to move forward in its acquisition of the California Theater, while prearranging for the operational management to shift from the SBCLOA to another qualified firm. SWf=~~h' form molwo, oA', "BO "'" "C', TIMOTHY C. STEINHAUS, Administrator Economic Development Agency -------.--------------------------------------------------------------------------------------------------------------- KJH:JMW:adw:sbclo:cdc COMMISSION MEETING AGENDA MEETING DATE: 06/20/1994 Agenda Item Number: ---1.l- 7 SBEO/0001/DOC/767/1w 6/15/94 1130 PROPERTY ACOUISITION AGREEMENT This Agreement is entered into this day of , 1994, by and between the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, duly organized and existing pursuant to the Community Redevelopment Law of the State of California, and the San Bernardino civic Light Opera Association, a non-profit, charitable and educational corporation of the State of California (hereinafter collectively referred to as "Association"). RECITALS WHEREAS, the Agency is authorized and empowered by the Community Redevelopment Law, Chapter 1 of Division 24 of the California Health and Safety Code, as amended (the "Law"), to permit owner participation in the redevelopment of real property; to enter into agreements for the acquisition, disposition and development of property or to otherwise assist in the redevelopment of real property within a redevelopment project area conforming with a redevelopment plan adopted for such area; to acquire real and personal property in redevelopment project areas; to recei~e consideration for the provision of redevelopment assistance; to make and execute contracts and other instruments necessary or convenient to the exercise of its powers; and to incur indebtedness to finance or refinance redevelopment projects; and - 1 - 7 r ") WHEREAS, the Agency and the Association have previously entered into a certain Disposition and Joint Development Agreement (the "D&JDA") dated as of October 15, 1984, pertaining to the acquisition and use by the Association of certain property known as the California Theater and as more particularly described in the D&JDA (the "Theater"); and WHEREAS, the Theater is located within the Central City North Redevelopment Project Area of the Agency; and WHEREAS, because of certain economic conditions, the Association had previously requested the assistance of the Agency in order to ensure the continued use of the Theater by fine arts organizations for the benefit and enjoyment of the residents of the Central City North Redevelopment Project Area and the residents of the City of San Bernardino (the "City") generally; and WHEREAS, the D&JDA was subsequently amended pursuant to the terms of that certain "Loan Agreement and Amended Disposition and Joint Development Agreement" by and between the Agency and the Association dated September 9, 1993 (the "Loan Agreement"); and WHEREAS, amongst other things, the Loan Agreement provided for a loan by the Agency to the Association in an amount of Two Hundred Thousand Dollars ($200,000) (the "Agency Loan") which Agency Loan was secured by a Deed of Trust on the Theater and - 2 - 7 / '2 other real property of the Association and various UCC-1 Financing Statements; and WHEREAS, the purpose of the Agency Loan was to help alleviate financial difficulties encountered by the Association in order to ensure continued use of the Theater in a manner beneficial for residents of the City; and WHEREAS, the Association is experiencing additional financial difficulties and as a result has requested the further assistance of the Agency as more fully described herein; and WHEREAS, the Association holds fee title to the Theater which is more fully described in Exhibit "A" attached hereto and incorporated herein by this reference; and WHEREAS, pursuant to Health and Safety Code Section 33391, the Agency may, for the purposes of redevelopmenti acquire property including, but not limited to, the Theater, located within a redevelopment project area; and WHEREAS, in order that the Agency may ensure the continued use of the Theater in a manner consistent with the redevelopment objectives of the Agency and in a manner which best serves the residents of the City, the Agency desires to purchase from the Association, and the Association desires to sell to the - 3 - 7 10 Agency, the Theater, together with any and all improvements thereon and any fixtures, facilities, equipment and other personal property located thereon related to the activities of the Association which fixtures, facilities, equipment and personal property are more fully described in Exhibit "B" attached hereto and incorporated herein by this reference; and WHEREAS, to further assist the Association, the Agency has deemed it desirable to revise the terms of the Agency Loan so as to more accurately reflect current market conditions and to ensure repayment of the outstanding balance thereof. AGREEMENT NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND PROVISIONS SET FORTH HEREINAFTER, THE PARTIES HERETO AGREE AS FOLLOWS: Section 1. Incorporation of Recitals. The foregoing recitals are incorporated herein by reference. Any and all facts set forth therein shall be deemed to be accurate and truthful and in the event of any dispute between the parties hereto, neither party shall contest the accuracy or truthfulness of any or all such facts set forth in the recitals. - 4 - 7 1'7/ section 2. Continqencv. Until such time as (i) the Agency has received clear marketable title to the Theater and related personal property in accordance with the terms of this Agreement, (ii) the Association and Agency have executed an amendment to the Promissory Note and related Deed of Trust described in the Loan Agreement, and (iii) the Association has transferred, or caused to be transferred to the Agency or its designee, its interest and any of its rights in that certain liquor license presently applicable to the Theater, the Loan Agreement shall remain in full force and effect. Thereafter the terms and provisions of the Loan Agreement, to the extent inconsistent with the provisions of this Agreement, shall be deemed superseded by the provisions of this Agreement. Section 3. Purchase and Sale of the Theater. The Association hereby agrees to sell the Theater to the Agency, and the Agency hereby agrees to purchase the Theater from the Association on the terms and conditions as herein provided. Said purchase will include the transfer by the Association of all related improvements, fixtures, facilities, equipment and other personal property described on Exhibit "E" along with all of the Association's rights and interests in that certain liquor license applicable to the Theater. Section 4. Purchase Price. The purchase price for the Theater shall be Three Hundred Thousand Dollars ($300,000) (the - 5 - 7 1'2- "Purchase Price"). The Purchase Price shall be payable in cash in accordance with the close of Escrow as hereinafter described. Section 5. Aqencv Loan. Simultaneously with the execution of this Agreement, the Association shall execute a new Promissory Note reflecting the outstanding principal balance of the Agency Loan which Promissory Note shall provide that payment of the principal balance of the Agency Loan shall be deferred for a period of two (2) years from the date hereof and that the Association shall make monthly payments of interest only at the rate of six percent (6%) per annum based upon the outstanding principal balance of the Agency Loan as of the date hereof. Thereafter, the Association will make substantially equal monthly payments of principal and accrued interest at the annual rate of six percent (6%) with principal amortized for thirty-six (36) months until the expiration of the term of the Agency Loan which shall be five (5) years from the date of the revised Promissory Note. The revised Promissory Note shall be secured by deeds of trust for those certain real properties of the Association which are located at 2079 North "E" Street and 3106 Cajon Boulevard, San Bernardino, California, and which are more fully described in Exhibit "C" attached hereto and incorporated herein by this reference. The Association shall use its best efforts to cause the sale of said real properties described in Exhibit "C" in order that the proceeds from such sale be used to repay the Agency Loan. - 6 - 7 . /) The Association agrees that the Agency Loan and the repayment thereof shall be an obligation of the Association which is prior to and superior to the repayment of any loan, deferred amounts or other indebtedness owed by the Association to any former or present member, director, employee or officer of the Association. No such loan, deferred amounts or other indebtedness shall be paid whether from the (i) proceeds of the sale of the real properties described in Exhibit "e," (ii) moneys representing the Purchase Price, or (iii) other moneys, assets or income of the Association until the Agency Loan, both as to principal and all accrued interest thereon, has been paid in full. Upon written request of the Agency, the Association shall provide the Agency with information regarding the principal amount, date, obligee and repayment terms of any such loan, deferred amounts on other indebtedness, together with any executed subordination agreements as may additionally be requested by the Agency. Notwithstanding the above, that certain loan as previously established by Evelyn Wilcox to the Association dated June 10, 1994, in the principal amount of $30,000.00, without interest, at the option of the Association, be repaid from net available proceeds of the Purchase Price upon close of escrow in accordance with appropriate escrow instructions providing for such repayment acceptable to the Agency Executive Director. Section 6. Rent. The Association will pay rental to the Agency for its use of the Theater on a per-performance or usage basis, at a rental rate to be determined by the Agency which - 7 - 7 12- is consistent with rental charged to other users of the Theater and to the public generally. In addition to the Agency assistance described in Section 5 hereof, and provided it is not otherwise in default under the terms of this Agreement or the revised Promissory Note, the Association shall be entitled to receive free rent up to a maximum of One Hundred Thousand Dollars ($100,000) per year for a period of two (2) years from the date hereof. Any unused portion of the annual free rent allocable to each one-year period will not carry forward into any subsequent one-year period nor may more than $100,000 in free rent be applied in either of the two (2) one-year periods and no free rent shall be applied beyond the conclusion of the second one-year period. To the extent the Association fails to make timely payments of outstanding interest due or owing on the Agency Loan, the rent subsidy available to the Association will be offset by the amount of such overdue payment(s). Section 7. Ooeninq of Escrow. In order to consummate the conveyance of the Theater pursuant to this Agreement, an escrow (the "Escrow") shall be opened by the parties hereto with an escrow agent mutually acceptable to the parties hereto (the "Escrow Agent") within five (5) business days following the date of execution of this Agreement. Section 8. Escrow Period. Subject to Section 14 below, the Escrow shall close and all obligations of the parties - 8 - 7 ./ hereunder to satisfy the terms and conditions of the close of Escrow shall be performed and completed no later than sixty (60) calendar days following the date the Escrow is opened. Section 9. Conditions of Escrow. The close of the Escrow and the Agency's obligation to purchase the Theater shall be expressly conditioned upon satisfaction by the Association or waiver by the Agency of each of the following; (a) The conveyance to the Agency, or its nominee, of good and marketable fee title to the Theater, as evidenced by a standard form ALTA Title Insurance Policy in the amount of the Purchase Price, issued by a title insurance company approved by Association and the Agency, subject only to such liens and encumbrances of record as approved in writing by the Agency, within thirty (30) days of receipt of a preliminary title report of the Theater; (b) Delivery of possession of the Theater to the Agency, or its nominee, immediately on the close of the Escrow, free and clear of all uses and occupancies, except those as may be approved in writing by the Executive Director of the Agency; (c) Delivery of possession and title to the fixtures, facilities, equipment and personal property which is listed in Exhibit "B" (d) Delivery of possession and/or all rights and interests in that certain liquor license presently in the name of the Association which is applicable to the Theater, to the Agency or its designee. (el The deposit into Escrow by the Association of all necessary deeds or other documentation necessary .to transfer title to the Theater to the Agency within ten (10) days prior to the date that the Escrow is scheduled to close; (f) Payment by Association of all taxes and liens which may be due and owing on the Theater. (gl Approval by the Agency in writing of the physical condition of the Theater to ensure that the Theater is in - 9 - 7 )'/ such a condition for use and occupancy by fine arts groups and the public generally. (h) The delivery to the Agency of copies of all studies (geologic, planning, architectural, soils conditions, etc.) in possession of the Association that could impact upon Agency's use of the Theater. (i) The deposit by the Association into Escrow of any and all sums required to be deposited into the Escrow pursuant to this Agreement. The Association's obligation to convey title to the Theater to the Agency at the close of Escrow shall be expressly conditioned upon satisfaction by the Agency or waiver by the Association of the following: (a) The deposit by the Agency into Purchase Price within three (3) days of the Agency by the Escrow Agent that otherwise in a condition to close; and Escrow of the notification to the Escrow is (b) The deposit by the Agency into Escrow of any and all other sums required to be deposited by it into the Escrow pursuant to this Agreement. Section 10. Failure of conditions. In the event that any of the conditions to the close of Escrow as set forth in this Agreement should fail to occur and are not otherwise waived by the parties for whose benefit the condition is set forth, or any of the obligations of the parties required to be completed prior to the close of Escrow pursuant to this Agreement should fail to have b~en performed and completed, within sixty (60) calendar days after the opening of the Escrow as provided in Section 7 of this Agreement, then either party shall have the power, to be exercised by giving a written notice to the Escrow Agent and to the other party, to cancel the Escrow, to terminate this Agreement, and to recover any - 10 - 7 I') and all moneys or documents deposited by that party into the Escrow hereunder. The exercise of such power by either party shall not, however, constitute a waiver by that party of any other right which that party may have against the other party for any breach of this Agreement. The Escrow Agent shall be, and is hereby, irrevocably instructed by the parties to refund or return immediately to the appropriate parties, on any such failure of conditions and receipt of such notice from any party, all moneys and instruments deposited by the parties into the Escrow pursuant to this Agreement. Section 11. Joint Escrow Instructions. Sections 7 through 19 of this Agreement shall constitute joint escrow instructions of the Association and the Agency for the conveyance of the Theater. The Association and the Agency agree to execute any and all reasonable and appropriate additional escrow instructions and to perform any and all reasonable and appropriate acts as may be necessary in order to expedite and facilitate the close of the Escrow hereunder. Section 12. Escrow Funds. All funds in the Escrow shall be deposited with other escrow funds in a general escrow trust account and may be transferred into any other such general . escrow trust account in any state or national bank doing business in the State of California. All disbursements shall be made by check from such account. Any and all interest accruing on funds deposited into the escrow shall be due and payable to the party which made such deposits. - 11 - 7 1'/ Section 13. Close of Escrow. The term "close of escrow" herein shall mean the date on which necessary instruments of conveyance are recorded in the office of the County Recorder of San Bernardino County, California. The Escrow Agent is authorized and directed to record a grant deed or deeds to the Theater from the Association to the Agency, and any and all other appropriate documents hereunder, in order to close the Escrow hereunder. Section 14. Extension of Time. All time limits within which any matter herein specified is to be performed including, without limitation, the close of Escrow, may be extended by mutual agreement of the Association and the Agency. Any amendment of, or supplement to, the escrow instructions hereunder or any other provisions of this Agreement shall be in writing. Section 15. Authoritv of Escrow Aoent. The Escrow Agent is authorized to and shall: (al Pay and charge the Association for any and all current and/or delinquent taxes and any penalties and interest thereon, and for any delinquent or non- delinquent assessments or bonds; (bl Pay and charge the Association and Agency for all escrow fees, costs and charges which might arise in this escrow, as set forth herein; and (cl Record deeds, disburse funds and deliver deeds between the Association and the Agency, when conditions of the Escrow have been fulfilled or otherwise waived. Section 16. Proration of Taxes. There shall be prorated between the Association and the Agency on the basis of - 12 - 7 1/ thirty (30) day months, as of 12: 00 midnight San Bernardino, California Time on the date of the close of Escrow, any and all real property taxes levied or assessed against the Theater, as shown on the latest available tax bills. Any bonds or improvement Section 17. Assessments. assessments which are a lien on the Theater and which are due and payable as of the date for close of Escrow shall, on the close of Escrow, be paid by the Association. Section 18. Commissions. Any and all commissions due to real estate brokers or other brokers as a result of the conveyance of the Theater by the Association to the Agency hereunder shall be paid by the party that has employed the broker. Section 19. Costs of Escrow. The expenses of Escrow described in this Agreement shall be paid in the following manner: (al The cost of securing a CLTA title insurance policy shall be paid by the Association and the costs of any endorsements or the additional costs to obtain an ALTA title insurance policy, if requested by the Agency, shall be paid by the Agency; such title insurance policy shall comply with the terms and conditions of Section 9(a); (b) The cost of preparing, executing and acknowledg~ng any deeds, or other instruments required to convey title to the Agency, or its nominee, in the manner described in Section 7, and any escrow fees charged by the Escrow Agent shall be paid one half (1/2) by the Agency and one half (1/2) by the Association; (c) The cost of recording a grant deed(s) required to convey title to the Theater to the Agency, or its nominee, as described in Section 9 of this Agreement shall be paid by the Agency; and - 13 - 7 , .-., (d) Any tax imposed under the Documentary Transfer Tax Act upon the conveyance to the Agency, or its nominee, of title to the Theater shall be paid by the Agency. Section 20. Notices. Any and all demands, notices or other communications ("Communications") required or permitted by this Agreement or by law to be served on or given to any party hereto and/or to the Escrow Agent, as applicable, by any other party hereto and/or by the Escrow Agent, as applicable, (a) shall be in writing and (b) shall be deemed duly served and given when personally delivered to the parties and the Escrow Agent, as applicable, to whom it is addressed, or in lieu of such personal service, when deposited in the United States mail, first-class postage prepaid, addressed to the parties and to the Escrow Agent, as applicable, at the following addresses: To Agency: Executive Director Redevelopment Agency of the City of San Bernardino 201 "E" Street, Third Floor San Bernardino, California 92401-1507 To Association: The San Bernardino civic Light Opera Association P.O. Box 606 San Bernardino, California 92402 Attn: Keith Stava To Escrow Agent: Any and all demands, notice or other communication shall be deemed to have been received by the party and the Escrow Agent, as applicable, to whom such demand, notice or communication is addressed on the day that any such demand, notice or communication is personally delivered to the addressee, or three calendar days - 14 - 7 i7 following the date any such demand, notice or other communication is deposited in the United States mail in the manner set forth herein. Any party and the Escrow Agent, as applicable, may change it's address for purposes of this Section by given written notice of such change to the other parties and the Escrow Agent, as applicable, in the manner provided herein. Section 21. Term. This Agreement and the obligations hereunder shall endure from the date of execution of this Agreement by the parties hereto until and through December 31, 1994, unless the close of Escrow shall have occurred prior thereto or this Agreement has been terminated and the Escrow documents and deposits have been released and returned to the respective parties. Section 22. Non-Merqer. This Agreement shall not be subject to the doctrine of merger. Each and every provision hereunder shall survive the close of Escrow and the transfer of title to the Theater from the Association to the Agency. Section 23. Severabilitv. Every provision of this . Agreement is and shall be construed to be a separate and independent covenant. If any provision of this Agreement or the application of the same is, to any extent, found to be invalid or unenforceable, then the remainder of this Agreement or the application of such provision to circumstances other than those to - 15 - 7;') which it is invalid, or unenforceable, shall not be affected by the same and each provision of this Agreement shall be valid and shall be enforced to the extent permitted by law. In that event, the Association and the Agency will cooperate with one another in negotiating such amendments to this Agreement as may be necessary to give effect to this Agreement, notwithstanding the severance of the invalid or unenforceable provision. Section 24. Entire Aqreement. This Agreement integrates all of the terms and conditions applicable to the matters set forth herein and supersedes all negotiations and prior agreements between the parties with respect to the matters set forth therein. Any and all waivers of the terms and conditions of this Agreement and all amendments hereto must be in writing and must be executed by the parties hereto. Section 25. Interpretation. Interpretation of the validity and enforcement of this Agreement shall be governed by and construed under the laws of the State of California. Section 26. Attorneys' Fees. If either party hereto files any action or proceeding against the others arising out of . this Agreement, the prevailing party shall be entitled to recover its costs and reasonable attorneys' fees. Section 27. Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their - 16 - 7 " respective heirs, executors, administrators, legal representatives, successors and assigns. Section 28. Counterparts. This Agreement may be executed in original counterparts, each of which shall be deemed to be an original for all purposes and such counterparts shall constitute one and the same instrument. - 17 - 7 I 'J IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. ATTEST: By: "AGENCY" REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By Executive Director Secretary APPROVED AS TO FORM AND LEGAL CONTENT: By: Counsel to the Agency "ASSOCIATION" SAN BERNARDINO CIVIC LIGHT OPERA ASSOCIATION By Title By Title SBEO/0001!DOC/767 - 18 - 7 ,'7 Exhibit "A" Legal Description of Theater PARCEL NO. C-1: THE EAST 100 FEET OF LOT 2, BLOCK 28 OF THE CITY OF SAN BERNARDINO, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 7. PAGE 1 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL NO. C-2: LOT 2, BLOCK 28 OF THE CITY OF SAN BERNARDINO, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 7, PAGE 1 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THE WEST 186 FEET OF SAID LOT; AND EXCEPTING THE EAST 100 FEET OF SAID LOT. PARCEL NO. C-3: THE EAST 112.62 FEET OF THE SOUTHERLY 21 FEET OF LOT 3, BLOCK 28, OF THE CITY OF SAN BERNARDINO, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 7, PAGE 1 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL NO. C-4: THE EAST 112.62 FEET OF THE NORTH 15 FEET OF THE SOUTHERLY 36 FEET OF LOT 3, BLOCK 28, OF THE CITY OF SAN BERNARDINO, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 7, PAGE 1 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL NO. C-5: A RIGHT OF WAY AND EASEMENT FOR PRIVATE DRIVEWAY AND INGRESS AND EGRESS TO AND FROM PARCEL NO. C-4 ABOVE DESCRIBED TO "F" STREET, IN SAID CITY OF SAN BERNARDINO, AS RELOCATED BY INSTRUMENT RECORDED MAY 21, 1938 IN BOOK 1271 OF OFFICIAL RECORDS, PAGE 311, SAID RELOCATED RIGHT OF WAY BEING DESCRIBED HEREIN AS THE NORTH 15 FEET OF THE SOUTHERLY 51 FEET OF LOT 3, BLOCK 28, EXCLUDING THE EAST 112.62 FEET THEREOF, OF THE CITY OF SAN BERNARDINO, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 7, PAGE 1 OF MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. ALSO A RIGHT OF WAY OVER AND ACROSS A STRIP OF LAND 15 FEET WIDE LYING NORTH OF AND ADJOINING PARCEL NO. C-4 ABOVE DESCRIBED AS CONVEYED TO AMERICAN NATIONAL BANK OF SAN BERNARDINO, BY DEED FROM SECURITY INVESTMENT COMPANY OF SAN BERNARDINO, RECORDED AUGUST 3, 1927 IN BOOK 256 OF OFFICIAL RECORDS, PAGE 345. Exhibit A, Page 1 7 ,-,/ Continued PARCEL NO. C-6: ALL THAT LAND INCLUDED WITHIN THE FOLLOWING DESCRIBED BOUNDARY LINE: BEGINNING AT A POINT IN THE NORTH LINE OF LOT 2, BLOCK 28 OF THE CITY OF SAN BERNARDINO, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER HAP RECORDED IN BOOK 7, PAGE 1 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AS CONVEYED TO SOUTHERN CALIFORNIA GAS COMPANY BY DEED RECORDED IN BOOK 857 OF DEEDS, PAGE 202 AND AS DESCRIBED IN REGISTRAR'S CERTIFICATE OF TITLE NO. 1130; SAID POINT BEING DISTANT SOUTH 890 54' 27" EAST 186.00 FEET FROM THE NORTHWEST CORNER OF SAID LOT 2; THENCE SOUTH 00 02' 00" WEST 149.46 FEET TO A POINT IN THE NORTH LINE OF FOURTH STREET 82.50 FEET IN WIDTH; THENCE NORTH 00 02' 40" WEST 80.96 FEET TO A POINT; THENCE NORTH 00 02' 00" EAST 68.50 FEET TO A POINT IN THE AFORESAID NORTHERLY LINE OF LOT 2; THENCE SOUTH 890 54' 27" EAST ALONG SAID NORTHERLY LINE OF SAID LOT 2, A DISTANCE OF O.~l FEET TO THE POINT OF BEGINNING. PARCEL NO. C-7: ALL THAT LAND INCLUDED WITHIN THE FOLLOWING DESCRIBED BOUNDARY LINE: BEGINNING AT A POINT IN THE NORTHERLY LINE OF SAID LOT 2, SOUTH 890 5~' 27" EAST 186.00 FEET FROM THE NORTHWEST CORNER OF SAID LOT 2, SAID POINT BEING ALSO A POINT IN THE SOUTHERLY LINE OF LOT 3, BLOCK 28, OF THE CITY OF SAN BERNARDINO, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 7, PAGE 1 OF HAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE NORTH 890 54' 27" WEST 0.11 FEET ALONG THE SOUTHERLY LINE OF SAID LOT 3; THENCE NORTH 00 02' 00" EAST 36.00 FEET TO A POINT IN THE NORTHERLY LINE OF THAT CERTAIN PROPERTY CONVEYED TO SOUTHERN CALIFORNIA GAS COMPANY BY DEED RECORDED IN BOOK ~277 OF OFFICIAL RECORDS, PAGE 157; THENCE SOUTH 890 54' 27" EAST 0.11 FEET TO THE NORTHEAST CORNER OF PROPERTY CONVEYED BY ABOVE DEED; THENCE SOUTH O. 02' 00" WEST 36.00 FEET TO THE POINT OF BEGINNING. Exhibit A, Page 2 7 7 , . - . Exhibit "B" . 8an l3eJnaJ/tild Ciuk Li;hl (()fieJa vfsSddalidn 1398 NORTIi "E" STREET .SAN BERNARDINO, CAliFORNIA 92405 MAILING ADDRESS: P.O. BOX 606. SAN BERNARDINO, CALIFORNIA 92402 TELEPHONE:AREA CODE (909) 386-7353 . FAX (909) 386-7358 CALIFORNIA THEATRE OF PERFORMING ARTS EQUIPMENT INVENTORY April 15, 1994 FURNITURE, APPLIANCES, AND FIXTURES (2) Banquet tables 8' long (1) Banquet table 6' long (4) Misc. folding tables - backstage (2) Hexagonal tables wi drawer and metal base 2'x42" high (8) Tables, assorted sizes, wood & metal (1) Coffee table, wood (2) Pink table skirts (4) White table cloths (1) Artificial floral decoration 2' long (6) Cfiairs - beige, padded (71) Chairs, folding (22) Chairs, assorted padded (15) Chairs, tan wi arms (2) Stools, maroon, upholstered (7) Stools (2) Stools, high, padded wi backs (1) Bar stool, brown upholstered 30" high (14) Bar stools, black upholstered 30" high (4) Sofas, maroon 7' long (4) Chairs, large, upholstered, maroon (1) Sofa, dressing room (2) Ticket hoppers, wooden 14" x 31" high (1) Wooden cabinet, lock-able 20" x 30" x 30" (3) Desks, wooden (3) Office chairs, wooden (1) Desk, wooden, small, rolling (1) Partner's desk (1) Storage cabinet, metal (3) Shelves, assorted sizes, wooden (1) Film rack (1) Set of lockers, 3 doors (1) Sparklettes drinking water base, antique (1) 3 drawer filing cabinet, wooden (2) 2 drawer filing cabinets, metal (1) Soft drink serving counter 10' x 2' x 42" high (1) Back bar wi storage cabinets and display shelves 16' long (1) Bar 16' long (1) Bar 6' long (1) Scotsman ice machine (1) Kenmore Ice Box refrigerator (1) Whirlpool refrigerator (1) Oasis electric drinking fountain 7/7 ". Page 2 CALIFORNIA THEATRE OF PERFORMING ARTS, EQUIPMENT INVENTORY FURNITURE, APPLIANCES, AND FIXTURES (Cont.) (2) Elkay electric drinking fountains (2) Drinking fountains, wall mounted, not electric (1) Brewrnatic Diplomat coffee maker, 2 pots (1) 16 gallon Shop Vac, wetldry vacuum (2) Hoover upright vacuums (3) Space heaters, small (2) Box fans, electric (1) Thermos 34 quart cooler (6) Easels, wooden (6) Stantions, brass 3' (4) Red upholstered ropes (2) Red upholstered ropes (1) Lobby display board 6' x (1) Portrait of Will Rogers (1) Portrait light (2) Mirrors wi gold frames (4) Mirrors, round (1) American flag on pole and base (1) California State flag on pole and base (1) Floral print rug 12' x 18' (2) Chandeliers 4', 20 lamps each (2) Chandeliers 2 tiers, 12 lamps each (1) Chandelier 1 tier, 4 lamp (10) Wall sconces 2' xl', 2 lamps each (1) Wall sconce, 2 lamp Assorted sinks Safe, built-in to wall in upstairs manager's office Safe, built-in to ticket booth counter Safe, fireproof in backstage sound room high 6' long 46" long 3 1/2' 4' x S' (1) (1) (1) MISCELLANEOUS THEATER EQUIPMENT (1) Zee medical 1st aid station, large wi supplies (1) Emergency procedures sign (11) Fire extinguisher, 9 lb ABC (1) Fire extinguisher, BC C02, large (1) Fire extinguisher, soda acid (2) Mop buckets wi wringers (8) Trash can - tall, plastic (13) Trash can - tall, metal (6) Cigarette ash cans, metal, 10" diameter, 20" high Assorted wet mops, dry mops, and brooms (3) Step ladder, wooden 8' (1) Step ladder, wooden 4' (2) Work light on stand (1) Theater intercom telephone system Assorted marquis letters (1) Production table, wood (1) Sound console platform, wood (1) Step unit, misc. (1) Step corrector 717 ~ ". Page 3 CALIFORNIA THEATRE OF PERFORMING ARTS, EQUIPMENT INVENTORY USHER SUPPLIES (25) Usher vests, red, assorted sizes (5) Usher wrap around skirts, black (2) Usher men sports jackets, black (20) Usher flashlights MUSICAL EQUIPMENT (1) Mighty Wurlitzer Organ console, pipes, fans, blowers, and assorted parts (1) Upright piano - Chickering (1) Upright piano - Gulbransen (3) Wooden piano benches (21) Music stands, adjustable, black, metal (2) Conductor music stands, adjustable, black metal (27) Music stand clip lights (1) Piano light (2) Conductor podium, 3" high (1) Cqnductor podium, 6" high LIGHTING AND ELECTRICAL EQUIPMENT (1) Teatronics "Concept" computer light control board (1) Teatronics "Vision" computer light control board (1) "Director" 60 channel manual light control board (1) "Backstage" 24 channel.manual light control board (1) Teatronics digital to analog converter (3) PI-3 computer monitors wi cable (1) Brother M1709 computer printer wi cable and box of paper Assorted quad boxes and hOOk-up cables Dimmers: (10) (2) Genesis Series 10 x 2.4K Genesis Series 6 x 6K Lighting instruments wi gel frames, safety cables & C clamps: (3) 8x12 leko (10) 6x9 leko, Century (12) 6x9 leko, Altman (29) 6x12 leko, Altman (16) 6x16 leko, Atlman (5) 6x22 leko, Atlman (30) 6" fresnel (16) 8" fresnel (37) PAR 64 MFL (4) 3 1/2 x 6 leko, Altman (1) 10" Beam Projector (8) 10" Beam Projector (6) Single far cyc (6) Double far cyc (6) Double ground row units (5) R-40 Strip lights (3) Follow spot lights, Strong Trooper 1200 7, 7 ~ Page 4 CALIFORNIA THEATRE OF PERFORMING ARTS, EQUIPMENT INVENTORY LIGHTING AND ELECTRICAL EQUIPMENT (Cont.) (22) 6" Barn doors (8) 10" Barn doors (30) Gobo holders (20) Gobo donuts (125) Assorted gobos Assorted clip lights (1) Infrared video camera, black & white, on mount (1) Infrared light source (1) Video camera, black & white (1) Video monitor, Sony 9", black & white (1) Video monitor, Sanyo 13", black & white (1) Video monitor, panasonic 9", black & white (10) Orange 14GA extension cords (10) Orange 16GA extension cords (10) Quad box extension cords (25) "twofers" stage cable (15) 5' stage cable, pin connectors (30) 10' stage cable, pin connectors (10) 15-20' stage cable, pin connectors (8) 50' stage cable, pin connectors (21) Edison to pin connector adapters (15) Assorted short extension cords (2) AC drop boxes wI 50' cable to breaker box (4) (16) (28) (4) (1 ) (2) (2) (1) (7) (1) (6) ( 1) (1) (1) 50 Ib bases, metal Pipe for box boom positions, misc length Cheeseboros for box boom positions 3' shin buster pipe wI bases 5' Z-Tech 8' Z-Tech 10' Z-Tech 20' Z-Tech Footlight covers, black, wooden Electrical road box wI assorted electrical supplies Large plastic racks Large paper cutter (gel) Stage Manager console Cue Light control panel wI assorted Cue Lights Metal cabinet wI assorted stage lamps, bulbs Assorted C clamps and misc clamps Assorted gel frames, gel, and spare lamps . .-, ~ .' . Page S CALIFORNIA THEATRE OF PERFORMING ARTS, EQUIPMENT INVENTORY SOUND EQUIPMENT (1) Studio Master 16-4-2 Mixing Board w/(3) 4 channel additions for a total of 2S channels (1) Studio Master power supply (1) Yamaha KX-W900U twin cassette deck (2) Rane ME30 graphic equalizers (1) Compressor (2) Speaker enclosures, each wi 4 Tanoy horns (1) Realistic MPA-9S 100watt PA amplifier, backstage paging system (1) Clear-Com base station (9) Clear-Com belt packs (9) Clear-Com headsets (1) Edcore ST-3 receiver - hand held wireless mic system (2) Edcore hand held wireless microphones (2) Motorola walkie talkies wi rechargeable bases (1) Sound rack wi . (2) Langeuin AMIA Mixers (1) Ampex tape deck (i) Patch bay (2) Longeuin AMSO Amplifiers (1) Ueri/JBL 6260 Power amp (3) PZM microphones (2) TOAJ2 Dynamic microphones (1) Superpro Dynamic microphone Assorted microphone cables and connectors Assorted backstage monitor speakers (2) On stage sound monitor cabinets (1) Wooden cabinet, lock-able wi Hearing Aid System Hearing Aid System: (2) FM Transmitters (24) Receivers (2) Recharger units Assorted earphone, headsets, rechargeable batteries STAGE CURTAINS AND STAGE EQUIPMENT (3) pr legs, black velour l3'W x 2S'H (1) Pr legs, black velour lS'W x 29'H (2) Pr legs, black velour S'6"W x 32'H (3) Borders, black velour SO'W x 10'H (1) Panel drop, black velour SO'W x 27'H (1) Sparkle drop, black velour - 2 pcs 26'W x 32'H ea (1) Hard portal header, black S2'W x S'H (1) Main curtain, maroon velour wi fullness - 2 pcs 2S'W x 30'H ea Valence and swags, maroon velour wi gold fringe Assorted black velour side tabs Assorted 3/4" drop pipe, couplings, and stiffeners (40) Counterweight line sets and weights (1) Mark Lift, Model P30, Serial #SSOP23SS, electric (1) Rolling hardware rack wi assorted stage hardware (2) Rolling, flat dollys approx 2x2 7 7 ~ . . Page 6 CALIFORNIA THEATRE OF PERFORMING ARTS, EQUIPMENT INVENTORY STAGE CURTAINS AND STAGE EQUIPMENT (Cont.) (3) Fire poles, wooden, various lengths (3) Clothes racks, metal (1) Hudson sprayer (1) Rosen box (2) Folding cots Assorted paint, lamps, electrical supplies -r 1/ Exhibit "C" Legal Description of Properties 3106 Cajon Boulevard is more fully described as follows: PARCEL A: LOTS 16 AND 17, TRACT NO. 3732, IN THE CITY OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 48, PAGES 39 AND 40 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 2079 North "E" Street is more fully described as follows: PARCEL B: THE SOUTH 38.5 FEET OF LOT 36, ADAIR AND MEYERS SUBDIVISION, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 18 OF MAPS, PAGE 61, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 7 17 Robert Stein THE ROBERT STEIN GROUP 39 South EI Molino Avenue Pasadena, California 91101 (818) 564-1214 Mr. Tim Steinhaus City of San Bernardino Economic Development Agency 201 North E Street San Bernardino, California 92401-1507 Dear Tim June 8, 1994 The following, per your request, is a preliminary proposal covering the 'transition management and operation" of The California Theatre, San Bernardino, and also a plan to cover the event programming of the venue, with the possible inclusion of that scope in this proposal. I believe that an essential part of the plan for the continuation (rebirth?) of a cultural arts center in an important mid-sized city is to keep an ongoing presence and a continuing operation while in transition. The California, with all of its problems, is an institution in San Bernardino, and notwithstanding its present plight, will be far simpler to establish as an important cultural arts center if it is not further stigmatized by closure, even if temporary. The venue is clearly in need of upgrading, and still, for a relatively modest amount of money can be given a "healthy" look. The facility does need to be brought up to current codes, and in order to husband funds, we should employ every bit of "grandfathered" advantage which can be mustered. As you know, I did a cursory tour of the facility last week, and found it to be a theatre with reasonable potential. As a theatre operator, I was impressed with the potential income producing uses for the upper lobby if and when it is enlarged, and would urge that an important component of the considerations which must be reviewed should include the completion of the revamping of that area, a work which appears to be in progress with the marriage of the area above the box office and the existing upper lobby of the venue. There are any number of improvements which should be reviewed and contemplated as funds become available. I would propose that an important part of the Transition Management task should be to work hand in glove with the Architectural Team to determine priorities and share in budgetary considerations. Transition Management and operation: Items A I. Document a simple Business Plan 2. Develop an interim, line item, budget based on a "no risk" operation of facility 3. Develop a working system of controls to insure 2 above. 4. Propose a schedule of maintenance 5. Establish a simple plan for supplementary sources of income, with an emphasis on "lobby sales", including souvenirs and refreshments -..:--.....- I '3'.')() 1.;:1~l/! ~ i;"j .... r ',;, .," 'If.! !;.' j.;"'" ":'."'.! .,.'! 7~ 7. Develop a calendar of event booking on a short tenn basis - possibly three to six months, and another longer range calendar covering the next year. 8. Develop and recommend a program, working within the local arts community, of promoting local area events. 9. Review the rental rate structure of the facility. The tasks as briefly itemized above present an attainable goal, and, in my opinion can be put into action quickly. Items B 1. Select interim employee base a. one full-time box office person who can also act as an on site administrator. b. house manager - employed for show nights and technical days only. c. technical director - employed for show nights and technical days only. 2. Oversee operations, including on-site visits and "hands on" supervision Transition Booking: and Programming:: The California Theatre must, due to economic considerations, be in the position of minimum to no risk operation. In order to attain that goal, it must be marketed to outside promoters, and should be available for and marketed to concert promoters, play producers, television and motion picture production companies, and local arts groups. Through this approach, the theatre will only be "lit" when there in activity, and the only activities will be prepaid by others. My independent company, The Robert Stein Group, has been successfully booking such events for theatres for a number of years, and, although no two venues and no two cities are the same, I am attaching a list of events which played in The Spreckels Theatre, San Diego over the last several months. That list is not represented to be what the events which will be invited into The California are, but rather to demonstrate the diversity of programming which is available. The common thread of scheduling is, after all, to program with dignity. Fees for the services: I. Transition Management and Operation Items A 2. Transition Management and Operation Items B 2. Transition Booking and Programming (only offered in the event that Management deal as shown above is consummated) $19,000.00 500.00 per month 10% of any rental and outside income, paid monthly This is "preliminary proposal", and still I believe that it fairly represents a plan that can work for San Bernardino and for me. I look forward to your early response. Sincerely /3G ROBERT STEIN The Robert Stein Group enc. 7 ;, Spreckles Theatre Bookings - 1993 to Current Advanced Marketing Seminar Alvin Ailey Dance American Ballet Ballet Africain Black Love Cliff Morrison Tribute Crowed House David Lonns Ellen Dejeneris Frankie Laine - Benefit Salvation Army Good Man's Hard to Find - Ethnic Play Grease ffiM Industrial Meeting Jammie Fox Jeff Danham Johnny Clegg Kodo Lawd Ha' Mercy - Ethinic Play McDonalds Gospel Festival Mozart Festival Natalie Cole National Art Poster Informercial National Theatre for Children Night on the Town (Jazz) Paul Westergard Phantom of the Opera Ram Sarah Schumacher Sayonara - The Musical The THE Tin Machine featuring David Bowie Tommy Davidson Victory Church Outreach Walls ofJericho Western Alliance of Theatrical Presenters Convention 7 ,A TIlE ROBERT STEIN GROUP Robert Stein: Principal Managerial experience has been concentrated on the growth and control of high traffic community related entertainment businesses. These have required: skill in planning the strategy of market coverage, preparation (through renovation, restoration, and actual construction) of new facilities, selection and training of personnel, installation of controls, and of course, the ongoing responsibility of booking suitable attractions for those entertainment facilities and local community auditoriums, as well as maintaining proper relations between private enterprise and the various communities in which these companies operate. A relatively detailed recap of the last twenty-one years is presented below. The first fifteen years of my work experience all centered in the entertainment industry, and were concentrated in motion picture exhibition, including the construction, operation and booking of a significant number of theatres and multi-plex auditoriums. A two year period was spent on an "exclusive consulting basis" with Hugh Hefner during the period when Playboy International was seeking diversification in mainstream entertainment ventures, another period was spent at Music Corporation of America as a motion picture literary agent. All in all, those segments of my background created the foundation for the more germane work experience detailed below. 1988 - Present THEATRE BOOKING AND CONSULTING PRACTICE Programming events in theatres throughout Southern California has become the nucleus of my work over the past four years. The Spreckels Theatre in San Diego is, perhaps the most dramatic example of "what I do". The theatre, a magnificent and well located turn of the century opera house, had been inactive for about fifteen years (about ten to twenty event days per year were typical) when I began to "book" the venue. Four and a half years later, it is open for almost two hundred event days, and those days include "Mainly Mozart"-a ten day festival, Tim Allen, Alvin Ailey Dance, Kodo Drummers, David Bowie and The Tin Machine, Natalie Cole, the home of the University of California at San Diego's Dance Series, and first class musicals including Fame starring Juliet Prowse. I also supervise its administration. In addition to San Diego, I book The Arlington Theatre, Santa Barbara; three specialized - ethnic - stages in Los Angeles, and all of Theatre Corporation of Americas stages including The Alex Theatre, Glendale, and The Wamors Theatre, Fresno. I have, on occasion, served as part of a consultation team for the Cities of Pasadena re The Raymond, Glendale re The Alex, and Palm Springs re The Plaza 1981-1988 THE BEVERLY THEATRE The Beverly Theatre was a converted and restored movie palace on Wilshire Boulevard in the "Golden Triangle" of Beverly Hills. It was leased, and restored, by Beverly Hills Live, Inc., a company in which I had a substantial interest. It reopened as an intimate concert hall, featuring a cross-section of artists including Betty Buckley, The Stars of The Royal Danish Ballet, Dionne Warwick, and Cyndi Lauper. The Beverly was also the home of 7 ,6') Robert Stein: page 2 The Beverly Hills Symphony and The Los Angeles Ballet. In other words, the theatre was the home of a diverse selection of attractions, and yet operated within the constraints of one of the most affluent and yet conservative communities in California. The facility was also used for lecture, business meetings, industrial shows, civic and community functions, and receptions. It was sold, and demolished, the unfortunate footnote to the demise of Columbia Savings and Loan. 1977 - 1981 THE WILSHIRE THEATRE The Wilshire Theatre is another converted and restored Beverly Hills movie palace. I arranged for its purchase by a group of investors, supervised its restoration and conversion in a "live theatre" and continued on as its chief operating officer. I booked and supervised it through its opening with Henry Fonda starring in "The Oldest Living Graduate" and operated it through a successful three years. The theatre included a restaurant, bar, and office tower, all of which were under my supervision. The business was sold in 1981. 7 fA ':;'!:c~~~~;]l~C~2)g'nil : ,I. .1'," . \ 'I 'ilt' 1 n "~'~.-I " ,> .~~J .!_H;/! i, ':.;~j~ I!Lt: ._~ eln Of $.~r; {:~~':;-h ;..!;: i.('~.;':,i.::: [:[\'UGI"\:['H :.G:::-iC" PROPOSAL FOR THEATRE SURVEY, REPORT AND PLANNING SERVICES FOR THE CALIFORNIA THEATRE SAN BERNARDINO R.F. McCann & Company Theatre Architecture - Development Planning - Systems Design for Performing Arts and The Entertainment Industry 614 E. COLORADO BOULEVARD. PASADENA. r.A q11n1 (~1 Q\ ~aA.Qon" 7 ,Il R.F. McCANN & COMPANY THEATRE ARCHITECTS June 9,1994 TmlOthy C. Steinhaus Agency Administrator Economic Development Agency 201 North E Street San Bernardino, CA. 92401 RE: Proposal for California Theatre Survey Dear Tim: R.F. McCann & Co. is pleased to submit our proposal, as requested for theatre consulting services, for the California Theatre. We have many strengths--specialized practice in theatre renovation, solid relevant experience in both new and renovation theatre design, substantial exposure to fund raising, work on designated historic theatres, and diplomatic skills for building consensus among community groups. Our visit to the site last week emphasized how fortunate San Bernardino is to have the California Theatre at its central location in the redeveloping part of the City. Once a grand and elegant structure, it has integrity of style and design to make it the major downtown attraction of the future. We have completed numerous other theatres in the capacity range of the California which have incorporated similar building renovation issues. On-going, similar projects give us up-to-date information on construction costs, recently revised seating codes, and the new Americans with Disabilities Act (ADA). In addition to architectural involvement, our expertise includes in-house design of rigging, lighting, seating and sightlines, room acoustics, noise isolation and electronic sound. Hoping that this proposal meets your requirements, we assure you of our interest in assisting the City of San Brnardino to assume ownership of the California Theatre. Yours very truly, R.F. McCann & Company ~ R. . McCann Principal 39 SOUTII EL MOLINO - PASADENA, CA. 91lOl - (818) 564-8900 7 11---- INDEX PART-I FIRM DESCRIPTION AND RESUMES PART-II PROPOSED SCOPE OF SURVEY, REPORT AND PLANNING SERVICES PART-III BUDGET FOR SERVICES PART-IV RELATED EXPERIENCE FOR THEATRE PROJECTS R.F. McCann & Co. 7.A PART-I FIRM DESCRIPTION AND RESUMES R.F. l\IcCann & Company 7 ; ,) THE FIRM TEAM APPROACH TECHNICAL CAPABILITIES UNDERSTANDING THE PROGRAM R.F. McCANN & COMPANY Theatre Architects & Consultants R. F. McCann and Company is a full service architectural firm with specialized background in theatres and performance facilities. Our comprehensive services have served clients since 1976 combining theatre feasibility analysis -- design and planning for specific event usage -- with all phases of architectural services through construction. Our expertise is based on over 15 years of experience and over 30 theatre projects throughout North America. We have first hand knowledge of facility operations and design and can offer a unique blend of architecture and theatre-related design services; we emphasize the realities of public assembly and safety, production system technology, theatre interior fixtures and decor and costs of combining such features into a single construction effort. Our working style centers on the design team and is based on abilities gained through our consulting experience that enable us to communicate easily and efficiently about project issues with all team members. We have integrated design and technical production in our office, realizing that departmentalization thwarts our ability to truly integrate project design. This team approach allows us to maintain continuity and control of ideas from conception to completion. We believe that overall project design is an open, shared process that is best served by incorporating the talents and experiences of the whole team with the client as a full-fledged member. R.F. McCann & Company Architects is conversant in the variety of tools of our trade, ranging from the traditional lead on paper to AutoCad, our computer-aided drafting and design system. We use the system that is best suited for the project phase and are successful at mixing media. We are known for our technical proficiency, consulting early and often with local code authorities and regulatory agencies. We have designed theatres of all construction types, using wood, concrete and steel. We take pride in our thorough and competent coordination of the less visible technical elements essential for a great theatre. This assures a smooth construction phase. We begin each theatre with as much research and analysis as time and common sense allow. Because every theatre is different, actual design work doesn't begin until we are sure we understand production needs and audience issues to be solved and develop a clear understanding of priorities. In this way we ensure that even conceptual work is based in reality, not just technical diagrams and "pretty pictures." The solutions we offer are a response to the program rather than a preconceived idea into which the program is stuffed. 7//t- R.F. McCANN & COMPANY Theatre Architects & Consultants DESIGN ABILITIES R.F. McCann & Company is successful for two reasons. We're good designers and we listen to our clients. We have a long history of satisfied clients. They are the best judges of our work. We hope you will contact some of our references on the following pages. THEATRE DESIGN A theatre center or any other kind of performance space is special both as a social gathering environment and as a show place. It is a public building in a rare sense, and should never be done routinely or approximately. To house performance superbly and to steer clear of the old misconceptions and mistakes, the requirement calls for truly knowledgeable and sensible planning, and in depth expertise about the entire performing facility process. Because of this, we believe a theatre architect should be much more than a narrow specialist. Team members of R.F. McCann & Co. are able to work with the realities of getting a project going from all standpoints -- to help create either a new or renovated facility -- while meeting the requirements to operate a financially successful theatre operation. DESIGN IS EVOLUTIONARY Design as we practice it is evolutionary, benefiting from continuous participation by the client and consultation with interest groups, if appropriate, and jurisdiction agencies. We expect to adjust throughout the design process--that is the challenge and excitement of our work. Another common denominator of all our work is that we like interesting, public-oriented projects with a challenge, with an existing heritage and design potential for providing lasting memories for the people they serve. 7 /1 RICHARD F. McCANN Education: Post Graduate Theatre Design, with B. Marcus Priteca, FAIA/ 1968.71 Bachelor of Architecture/ 1967 Bachelor of Music Composition/ 1963 Registrations: Licensed Architect, NCARB, six.States, Washington #1932 Experience: 10 Years musical performance experience 21 Years professional architectural experience Richard McCann's involvement with the performing arts began through music performance, composition and arranging in connection with the musical comedy stage, radio and television. While earning a music (composition) degree, he assisted in research and scored musical works by Anton Webern for that 12.tone composer's American debut performance in 1962 by the Seattle Symphony Orchestra. In 1968, McCann completed architectural studies and then sought post graduate study and work experience designing performing arts facilities in the early 1970's with the architectural firm of B. Marcus Priteca, FAIA. Over the span of a half.century, that office produced major theatres dating from the vaudeville era into the post.war years, including theatres for famed operators such as Pantages, Orpheum, Paramount (Publix), Warner Brothers and Fox in western cities from Hollywood to Calgary to New Orleans. Succeeding the master architect in 1971, McCann's independent theatre design work began. Project involvements included designing seating. forms, sightlines, stage equipment, stage lighting and acoustical enclosures in association with former Priteca associates, George Thomas Howard and Jack B.C. Purcell. Notable early projects included major Las Vegas hotel production rooms, the Spokane Opera House (designed for Expo.74), the Teachers' Training University Performing Arts Complex, for the Shaw of Iran, and drama and music theatres for the University of Missouri, Kansas City, and the Evergreen State College in Olympia, Washington. R.F. McCann & Company formally began undertaking full service theatre architecture in 1976, and has continued designing new theatres and restoring and reconstructing old ones through to the present time. Holding the belief 00 that every theatre project presents circumstances and challenging ways in which to incorporate the R.F. McCann & Company Theatre Architects 7 RICHARD F. McCANN (continued) "theatrical experience" -- design teams led by Ri~hard McCann have produced numerous theatre projects that include Seattle's 5th Avenue Theatre, The Washington Center in Olympia, and the Alberta Bair Theatre in Billings. Projects involving adaptation of older buildings for updated theatre use are categorized as either literal 'restorations' or reconstructions. Restorations include the Orpheum Theatre, San Francisco, landmarks such as the Plaza Theatre, Palm Springs, the Pasadena Playhouse and the legendary Alex Theatre in Glendale, California. Reconstruction approaches were the basis for adaptive reuse of theatres including the Wilshire Theatre, Los Angeles, Pantages Theatre in Tacoma, Washington and the Alberta Bair, Billings, Montana. Complementing full architectural services, since the early 1980's, McCann has led study teams in pre-design and theatre operation and management consultation. Studies have been undertaken as a preliminary step in fund raising and assessing operational feasibility. Completed major studies include redevelopment design for City of Los Angeles illustrating conversion of the First United Methodist Church into a performance facility for operation by the Los Angeles Music Center. In San Francisco and in Bellingham, Washington, National Endowment for the Arts (NEA) grants funded R.F. McCann & Company studies of the Geary Theatre (for American Conservatory Theatre) and the Mount Baker Theatre. For Portland, Oregon, one study provided design programming and the basis for funding reconstruction of the vintage Paramount Theatre, which became Portland's premier orchestra palace: The Arlene Schnitzer Concert Hall. In Salem, Oregon, the McCann theatre development study led to acquisition of the Elsinore Theatre as that city's resident performance center. Recently completed analysis and design studies are being used in development of theatres in San Diego, Culver City, Pasadena and North Hollywood. R.F. McCann is a member of the American Institute of Architects, the Construction Specification Institute, and the United States Institute of Theatre Technology. The Theatre Historical Society awarded him their "Outstanding Service Award". Other awards include a National Award for "Outstanding Project of the Year" from the National Trust for Historic Preservation for the 5th Avenue Theatre, and numerous "Landmark Preservation" and "architectural design awards" and critical acclaims for the theatres in Olympia, Tacoma, Los Angeles, Pasadena and Billings. R.F. McCann & Company Theatre Architects 7 .L JAMES W. FENSKE Education: Master of Architecture/ 1987 .- SoCal Institute of Architecture Bachelor of Science/ 1984 -- U of Calif, Berkeley Registration: Licensed Architect, CALE, California #C-21857 Experience: 8 years professional architectural experience Professional musical performance background preceded Jim Fenske's entry into Architecture. After completing architectural studies, he was a member of design teams led by several of the progressive design innovators with whom he studied at SCIARC. Following graduation Jim began his intense interest in the technical execution of building construction. Interest in research along with Jim's creativity working with materials of construction and methods of installation have produced numerous creative and original concepts for R.F. McCann & Company. Jim functions as a project manager for R.F.McCann & Co. and has performed in that role on theatre projects including the Alex Theatre, Glendale, the EI Portal (North Hollywood) theatre for Actors' Alley, and on conceptual designs for a theatre district in downtown Los Angeles. As project manager, Jim Fenske remains involved with theatre projects through the course of construction. Typically these involvements have included contract administration, site coordination and site-problem resolution for basic building installations as well as theatre specialty systems. Jim Fenske is married, the father of twin daughters, and resides in Pasadena. R.F. McCann & Company Theatre Architects 7 A PART-II PROFESSIONAL PROPOSAL THEATRE SURVEY, REPORT AND PLANNING R.F. McCann & Company 7 ,A PROPOSED SCOPE OF THEATRE SURVEY, REPORT AND PlANNING SERVICES STUDY PRODUCT AND DELIVERY FORMAT A work scope of survey and planning items follows. The format will include text descriptions of recommendations, approaches to achieving code conformance and providing professional theatre operating requirements. Drawings that accompany the text will be in the form of diagrammatic plan and section views that describe recommended additions, alterations or equipment items. 7JI) PROPOSED SCOPE OF THEATRE SURVEY, REPORT AND PLANNING SERVICES (Page 1 of 6) GOALS OF STUDY SERVICES The California Theatre can influence economic development based on frequent attractions (in excess of 150 annual event-days) of comparatively large audiences (approximating 80% of capacity). To achieve these goals, the level of accommodations, expected of restored municipal theatres, should include priority items which are described below. Such items may reflect "new" design standards, but need not match either extensiveness, cost, nor complexity of new construction. Some categories of items resemble subjects from the 1975 study, yet simplifications and lesser costs over the 1975 study are possible. The differences are due to changes in the theatre ownership needs and current standards of scenery, lighting and rigging for stage productions. PART-1-- EVENT PRODUCTION FACILITIES A. Stage Size Consideration of extending the stage forward is proposed by expanding and/or covering all or part of the orchestra pit (using portable pit platform covers). This issue is significant because stage depth is (and has been for the CLO), important to economic booking of musical-theatre, dance, and symphony orchestra events. B. Orchestra Pit Orchestra pit size and acoustical issues are currently limiting issues to theatre rentals. For live vocal events, orchestral loudness greatly exceeds the voices of performers on stage (demanding increased electronic sound correction); and for live dance events from major repertoire, more musicians are required than can presently fit in the pit. Because both are basic -- state of the art -- necessities, and have precedent solutions in other vintage era theatres, several approaches with varying levels of accommodation of the problems are proposed to be considered. 7)7 PROPOSED SCOPE OF THEATRE SURVEY, REPORT AND PLANNING SERVICES (Page 2 of 6) C. Basement Area Under Stage This item is closely related to stage size and orchestra pit design, as described above. Existing, abandoned equipment space under the stage, combined with a need for larger, more centrally located dressing rooms, wardrobe, and toilet facilities, conforming to "actors' equity" contract requirements, together make under-stage expansion an important consideration. Trailer rentals to fill these requirements have recently impacted costs of operation to an extent that has limited income from CLO productions, as well as curtailed many income producing rentals from the outside. D. Loading and Fly Bridges The lack of either a separate high-level Gust below the grid) "loading" bridge (for loading counterweights while scenery is being attached to battens near the stage-floor level) or a "fly" bridge (about 20-feet above stage level) represents "costs" in man-power, load in-and-out time, and some portion of forfeited events. Study of ways to add either one or both such bridges, and actual implementing of such improvements, will increase bookings and profitability for the City and user tenants. E. Scenery Grid Replacement of the existing wood gridiron is a very different level of need than other production needs. Elimination of this structure which exists in the stagehouse, above the performance area, (a hazard prohibited by all codes and standards for over 60.years) represents the highest priority of need for the theatre. Fire danger and the limitations of the load capability of the structure can be eliminated with a steel grid structure such as have been added to all currently operating early vintage theatres. A degree of further adaptation of the recently installed new rigging system will follow bridge and grid improvements, and will further assure the safety and fiscal benefits described for each. 7,~ PROPOSED SCOPE OF THEATRE SURVEY, REPORT AND PLANNING SERVICES (Page 3 of 6) F. Room Acoustics and Performance Sound Curtailed natural sound quality affects orchestral usage both for concert use and for ballet and musical-theatre use. A level of adaptation is possible without reshaping of the auditorium interior. Success has recently been achieved in several similar capacity auditoriums by increasing the reverberation, enhancing of cross-wise reflection patterns and design of music enclosures for the stage and orchestra pit (as noted above). PART-2 -- AUDIENCE ACCOMMODATIONS A. Lobby Toilet Facilities Sufficiently sized and located theatre toilet facilities are one of several audience influences that prompt subscribers to renew each season and help increase attendance and expand audience base. Presently, the total number of existing mens' and womens' fIXtures approximates only 30% of comparable fixture counts in vintage renovated theatres (recommended ratio 1:30). Preliminary review indicates that the number, access and location of fIXtures may be improved by supplementing the number of existing fIXtures and locations. B. Disabled Persons Access Disabled patron access as defined in recent ADA requirements could involve numerous areas and elements within existing lobby areas. Touring the entry-lobby, and pre-function and intermission lobby areas, floor level changes and door width and hardware issues were noted in addition to toilet facility location issues which could each be challenged by ADA requirements. These are important items for planning review. 71/ PROPOSED SCOPE OF THEATRE SURVEY, REPORT AND PLANNING SERVICES (Page 4 of 6) PART-3 -- SYSTEM FUNCTIONS AND EQUIPMENT A. Exit Passages, Doors and Hardware Issues preliminarily noted combine safety and code compliance and relate equally to audience and production areas within the theatre. Items for review include: 1. Upper level exiting from performer areas located either above or below stage level or at both levels as applicable, 2. Upper balcony exit door and stair widths and passage clearances as may already exist, 3. Consideration of the condition or need for replacement of emergency door hardware. 4. Exit light and exit pathway illumination fIxtures and emergency power sources for both. B. Theatre Seating Recently installed rebuilt theatre seats on the main 1100r, installed with 2'-10" back to back spacing, direct attention to capacity and leg room, rather than on the seats themselves. Wide row spacings (and a slight reduction in capacity) have been currently advocated by theatre operators to improve audience comfort and thereby increase attendance. Balcony seating in contrast with the main 1100r is early vintage. This suggests the need for "seat restoration" if such seats are to be reused. Also, row spacings above and below the crossover need to be compared with codes; planning then involves recommending either replacement or reuse of existing balcony seating and whether or not to adjust leg room. Considering sightlines, the balcony sightline slope appears to be satisfactory even to the extent of allowing for a degree of forward extension of the stage and/or pit. For sightlines to be optimum, adjustment in the form of incremental height adjustments per each row could improve individual row-to-row sight clearance on both the main and balcony levels. 7~ PROPOSED SCOPE OF THEATRE SURVEY, REPORT AND PlANNING SERVICES (Page 5 of 6) SYSTEM FUNCTIONS AND EQUIPMENT (Continued) C. Fire Resistive Construction Compliance The capacity (over 1000 seats), the occupancy (live theatre with a stagehouse), and the materials of construction (including wood) as combined and used in the California Theatre are non-conforming. Generally accepted building standards require alternative safety measures in such situations. This will be included in the evaluation. F. Building and Production Electrical Electrical service has proved insufficient and generator supplement necessary for several recent CLO musicals. Power is currently distributed through a combination of original vintage and newer electrical panels_ The newer parts of the layout and distribution should prove to be reusable. However, equipment dating from the original construction is obsolete, remaining original circuits need to be traced, circuit loads calculated and new branch panels designed. While such work is beyond the proposed scope of this study-report, it is proposed to outline branch systems and circuit groups which are non-conforming or require supplemental circuits. This is to provide budget information for planning. Verification of the utility service and transformer will also be included. G. Air Conditioning and Ventilation Review will include system efficiency concerning age, condition and operating cost of existing equipment. Also, auditorium noise levels and operational effectiveness in terms of supply air volume and temperature control are to be assessed. 7. .') PROPOSED SCOPE OF THEATRE SURVEY, REPORT AND PLANNING SERVICES (Page 6 of 6) H. Seismic Risk Reduction Seismic bracing and structure retrofit will involve the scenery rigging system, gridiron and any added frontal lighting positions as well as the basic building structure. Engineering recommendations will be included which outline a proposed scope of seismic upgrading. PART-4 -- COST DETAIL OF RECOMMENDED ITEMS A line item breakdown of costs associated with additions, alterations and equipment items will be provided in CSI format. PART-5 -- COST DETAIL OF RECOMMENDED ITEMS All recommendations will be described with accompanying scale drawings and bound for reference. Cost detail will be keyed to tel<! materials. Ten copies of the report will be reproduced and delivered. 7. ~ PART-III BUDGET FOR SERVICES R.F. McCann & Company 77 027E10 THEATRE SURVEY, REPORT AND PLANNING STUOY CALIFORNIA THEATRE, SAN BERNARDINO PART-1 PROPOSED FEE .---.......-------------------------------------------------------------------------------- ************eVENT PRODUCTION FACILITIES.......-------...-----.....---...-......----***.***.. 8,300.00 TASK-A Stage Size S1,500.00 TASK-B Orchestra Pit 1,000.00 TASK-C Basement Area Under Stage $1,500.00 TASK-D Loading and Fly Bridges BOO.OO TASK-e Scenery Grid 2,000.00 TASK-f Room Acoustics and Performance Sound 1,500.00 PART-2 -------------------------------------------------------------------------------------------- *....*******AUOIENCE ACCOMMODATIONS.-..-.-----....-------.-.........-.-.----***.*********.*. 3,300.00 TASK-A TASK-B lobby Toilet Facilities Disabled Persons Access 1,800.00 1,500.00 PART-3 ------------------.........----------------------------------------------------..---------- **..........SySTEM FUNCTIONS AND EQUIPMENT.............**.......*........................... 8,300.00 TASK-A TASK-B TASK-C TASK-O TASK-E TASK'F Exit Passages, Doors and Hardware Theatre Seating & Sightlines Fire Resistive Construction Compliance Building and production Electrical Air Conditioning and Ventilation Seismic Risk Reduction S800.00 1,000.00 1,500.00 2,500.00 1,500.00 1,000.00 PART-4 --------...------------.-----------------....-------------------------------.--.----------- ****.*******COST DETAIL OF RECOMMENDED ITEMS....-***_..._........_-----**.....__._*.*....... 2,200.00 PART-5 -.-...---.-------------.------------------.------.--..--.----.-----....--.----....----.---- *****_...*..REPORT PREPARATION........_--***_...............__...........--*****....******** 2,000.00 TOTAL COST OF ALL TASKS $24,100.00 77 . . PART-IV RELATED EXPERIENCE FOR THEATRE PROJECTS R.F. McCann & Company 7~ . .. CLIENT REFERENCES We believe there is no better method of judging the professional competence of a prospective consultant than to ask present and prior clients for their opinion of the firm's and individual staff members handling of their projects. We strongly suggest that you contact one or all of the following individuals who are familiar with the firm ofR.F. McCann 8. Company. FIFTH AVENUE THEATRE, SEATTLE DAVE CORTEL YU Unico Properties Seattle, Washington 98101 206)628-5050 PASADENA PLAYHOUSE, PASADENA LARS HANSEN Executive Director 39 South EI Molino Avenue Pasadena, California 9110 I (818)792-8672 DAVID G. HOUK Theatre Corp. of America 39 South EI Molino Pasadena, California 9110 I (818)624-8672 ALEX THEATRE, GLENDALE ROBERT STEIN Producing Directo'r 39 South EI Molino Pasadena, California 9110 I (818) 564-1214 DERRlLL QUASCHNICK Ass!. Dir. Redevelopment City of Glendale (818) 548-2005 ACTORS ALLEY REPERTORY THEATRE, LOS ANGELES ROBERT CAINE Exec. Director 5264 Lankershim No. Hollywood, CA. (818)908-2121 R.F. McCann & Company "777 . " ALBERTA BAIR THEATRE, BILLINGS DR. HUGHES AGNEW Board President P.O. Box 1556 Billings, Montana 59103 (406)238-2770 PANTAGES CENTER FOR PERFORMING ARTS, TACOMA ELI ASHLEY Executive Director 90 I Broadway Tacoma, Washington (206)591-5890 PLAZA THEATRE, PALM SPRINGS TIMOTHY STEINHAUS Agency Administrator Dept. of Economic Development San Bernardino City Hall 300 North 'D' Street San Bernardino, California 92418 (714)384-5081 CULVER THEATRE, CULVER CITY MS. SUSAN BERG Assist. Director Culver City Redevelopment 9696 Culver Blvd. - Ste.308 Culver City, CA 90232-2759 (213)202-5775 R.F. McCann & Company 7; '. , ADMIRAL THEATRE, BREMERTON A.H. (IKE) PARKER Chainnan, Admiral Theatre Foundation 4119 Wheaton Way Bremerton, WA 98310 (206) 373-5051 RAYMOND THEATRE, PASADENA MARSHA ROOD Dir. Dept. of Redevelopment City of Pasadena 100 North Garfield Ave. Pasadena, CA 91109 (818)405-4653 WASHINGTON CENTER FOR PERFORMING ARTS, OLYMPIA LYNN SCHRADER Assist. Director Seattle Childrens' Theatre Seattle Center (206)443-0807 TOM JOV ANNE Exec. Director (206)753-8585 WILSHIRE THEATRE, LOS ANGELES TOM STAGEN Stagen Really and Management P.O. Box 5268 Beverly Hills, California 90212 (213)274-0471 R.F. McCann 8f Company ,/l EC",'lOMIC DEVELOPMENT AGEhCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION FROM: TIMOTIJY C. STEINHAUS Agency Administrator SUBJECT: EDA DIRECTOR'S HIRING AUTHORITY DATE: June 29,1994 --------------------------------.------------------------------------------------------------------------------------------------.-.------- Synopsis of Previons Commission/Council/Committee Action(s): The Redevelopment Committee considered this matter at its June 23, 1994 meeting and took action forwarding same to the Community Development Commission without a recommendation. ---------------------------------.-------------------------------------------------------------------------------------------------------.- Recommended Motion(s): (Communitv Develooment Commission) MOTION: That the Community Development Commission reaffirm the EDA Hiring Authority Policy in effect from 1952 to the present. TIMOTIJY C. STEINHAUS Agency Administrator -----------------------------------------------------------------------------------------------.------------------------------------------- Contact Person(s): Timothy C. Steinhaus Phone: 5081 Project Area(s): None Ward(s): N/A Supporting Data Attached: StaffR"!'ort FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A Budget Authority: N/A -------------------------------------------------------------------------------------------------------~----------------------------------- Commission/CouneD Notes: ------------------------------------------------------------------------------------------------------------------ TCS:lag:07-0l-01.cdc COMMISSION MEETING AGENDA MEETING DATE: 07/05/1994 8 Agenda Item Nnmber: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ EDA DIRECTOR'S HIRING AUTHORITY The Redevelopment Agency of the City of San Bernardino was established in 1952 pursuant state law and local actions taken by the Mayor and Common Council. From its inception, the Agency, as a political subdivision operated separate and apart from the City of San Bernardino. As the development and entrepreneurial arm of the City, the Agency has been structured to facilitate a proactive, agile and streamlined day-to-day operation. This objective is evidenced by the following: . A separate governing body. From 1952 to 1978 the Agency was governed by a private board of director's with the Mayor and Common Council taking over this responsibility in 1978. . A separate personnel system in keeping with the state law, but significantly different from the system governing City employees. . A separate finance function, including the powers to debt finance, involving systems for accounts payable/receivable, accounting, internal auditing and contracts administration. . Separate job classifications and rates of compensation. . The authority to hire, transfer, promote, discipline and terminate Agency employees without the prior consent (other than budget authority approving position) of the Community Development Commission. This last item has been one of animated discussion at the last two Redevelopment Committee meetings. It is worth noting, however, that in the Agency's forty-four years of existence through four major reorganizations occurring in 1978, 1981, 1985 and 1990, the ability of Agency management to hire employees pursuant to personnel policies and procedures then in effect has not been changed, nor, until recently, has there been any discussion regarding the need to make such a fundamental change in the way the Agency operates. ------------------------------------------------------------------------------------------------------------------ TCS:lag:07-01-01.cdc COMMISSION MEETING AGENDA MEETING DATE: 07105/1994 , Agenda Item Number: ECONOMIC DEVELOPMul'lT AGENGY STAFF REPORT EDA Director's Hiring Authority June 29, 1994 Page Number -2- ------------------------------------------------------------------------------------------------------------------ The last major reorganization, which resulted in the creation of the Economic Development Agency, was, most likely, the most comprehensive. The following were key elements of that reorganization: ~ Establishment of Agency Administrator position per the City's General Plan Economic Element. ~ Combining of the former City Community Development Department with the Redevelopment Agency, resulting in the establishment of the Development Department. ~ Bringing Main Street, Inc., and the Convention and Visitor's Bureau and the Economic Development Council into the newly-established Economic Development Agency. ~ Creation of and adoption by the Community Development Commission of new classifications and job descriptions detailing education, training and experience requirements, desirable qualifications and any special qualifications required. ~ Adoption of new personnel policies and procedures. During the course of open and closed session discussions on the proposed reorganization, the Council and Commission took specific actions resulting in a reaffirmation of what has been a forty-four (44) year hiring authority policy. A key theme in these discussions was to afford Agency management staff the ability to hire the most qua1ified individuals free from political interference. It is axiomatic that if someone is hired to do a particular job, they should have the authority to hire their own people to get the job done. It is closely related to the management principle that authority must be commensurate with responsibility. The hiring authority issue is fundamental to the ability of the Administrator and other Agency management staff to effectively carry out their responsibilities. Some who recommend the Agency's hiring process should mirror the city's miss the point. The process utilized by the City where the appointment of all permanent, temporary, part-time and seasonal workers are approved by the Mayor and Common Council is, unique and somewhat cumbersome. The process utilized by the Agency is more typical of that employed by public and private sector employers. ------------------------------------------------------------------------------------------------------------------ TCS:lag:07-01-01.cdc COMMISSION MEETING AGENDA MEETING DATE: 07/05/1994 I' Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT EDA Director's Hiring Authority June 29, 1994 Page Number -3- ------------------------------------------------------------------------------------------------------------------ Moreover, the organizational differences and distinctions between the Agency and City should continue and be enhanced rather than made to mirror one another. The mission, role and function ofthe two organizations are dramatically different. The two resultant organizations allow each to operate at an optimal level. Blurring the lines of distinction between the Agency and the City may potentially undermine the very organizational tenets upon which the Agency was established. Staff is unaware of any position that has been previously advanced that objectively supports such a fundamental change in the Administrator's hiring authority. Based upon this, and the foregoing, staffrecommends'.adoption of the form motion. .....-~_.--- ,.,,/ TIMOTHY C. STEINHAUS, Agency Administrator Economic Development Agency TCS:lag:07-01-01.cdc COMMISSION MEETING AGENDA MEETING DATE: 07/05/1994 I' Agenda Item Number: