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ECONOMICYDEOF SAN VELOPPMENITOAGENCY ORIGINAL
FROM: Emil A.Marzullo SUBJECT: Rosenow Spevacek Group, Inc. - Amendment
Interim Executive Director No. 1 to the Agreement for Professional Services
(Merged Area B Merger and Amendment
Project)
DATE: October 20,2010
S -Co mm-----------------------------------ission/Cou ncil/Co mm-----itte------e A ct---------------io n(s):-----------------------------------------------------------------------------------------------------
ynopsis of Previous
On April 22,2010,Redevelopment Committee Members Johnson, Brinker and Marquez unanimously voted to recommend that
the Community Development Commission consider approving an agreement between the Agency and Rosenow Spevacek
Group("RSG")for the preparation of merger and plan amendment documents for the Merged Area B Merger and Amendment
Project this action for approval.
On June 7,2010,the Community Development Commission of the City of San Bernardino adopted Resolution No. CDC/2010-
29, approving an agreement between the Agency and the Rosenow Spevacek Group("RSG")for the preparation of merger and
plan amendment documents for the Merged Area B Merger and Amendment Project.
On September 9,2010, Redevelopment Committee Members Johnson, Brinker and Marquez unanimously voted to recommend
that the Community Development Commission consider approval to amend the current Professional Services Agreement by and
between the Agency and the Rosenow Spevacek Group for additional tasks related to the Merged Area B Merger and
Amendment Project.
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Recommended Motion(s):
(Community Development Commission)
Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing
the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino("Agency")to execute
Amendment No. 1 to the Agreement for Professional Services by and between the Agency and Rosenow Spevacek
_Group,Incorporated- —
Contact Person(s): Jeffrey Smith Phone: (909)663-1044
State College,Central City West,
Northwest,Uptown,Mt.Vernon,
Project Area(s): and 40`h Street Ward(s): 1,2,3,4,5,6
Supporting Data Attached: 0 Staff Report R1 Resolution(s)Rl Agreement(s)/Amendment(s)❑Map(s)❑Letter(s)
FUNDING REQUIREMENTS: Amount: $ 150,000 Source: Line Item 6600
Budget Authority: Fiscal Year 2010-2011 EDA Budget
Signature: Fiscal Review: �;< T,--V��
Emil A.Marzullo,Interim Executive Director Lori Pan -o-Ti ,I f Financial Officer
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Commission/Council Notes: ��� �QQ/�) _
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P\Agendas\Comm Dev Commission\CDC 2010\11-01.10 RSG Professional Services Agreement-Amendment No.1 SR.docx COMMISSION MEETING AGENDA
Meeting Date: 11/01/2010
Agenda Item Number:
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
ROSENOW SPEVACEK GROUP,INC.—AMENDMENT NO. 1
TO THE AGREEMENT FOR PROFESSIONAL SERVICES
(MERGED AREA B MERGER AND AMENDMENT PROJECT)
BACKGROUND:
In August 2008, Agency Staff conducted research and prepared studies to determine the feasibility of
merging and/or amending the City's multiple redevelopment project areas. It was determined that
redevelopment project areas on the east and west sides of the City of San Bernardino would benefit
from the merger/amendment process.
The State College Redevelopment Project Area was adopted in 1970. Central City West was adopted
in 1975. Northwest was adopted in 1982. Uptown was adopted in 1986. Mt. Vernon was adopted in
1990 and 40th Street was adopted in 2000. Each of these project areas currently have different dates
for project expiration, incurring debt, eminent domain, receiving tax increment and paying debt.
Additionally, each project area has different limits on the amount of tax increment that can be received
and debt that can be incurred.
As a result, some project areas: (1) do not have sufficient tax increment revenues to assist in financing
projects; (2) can no longer incur debt resulting in the Agency's inability to partner with developers that
need Agency financial assistance; (3) are approaching or have approached the cap on tax increment
revenues that can be received to assist in needed projects; and (4) no longer have current eminent
domain authority which is a useful tool in assisting a developer in obtaining the necessary land
required for a development.
Merger of project areas are desirable if they result in substantial benefit to the public and if they
contribute to the revitalization of blighted areas through increased economic vitality of those areas and
through increased and improved housing opportunities in or near such areas. The merger of project
areas will allow the Agency the flexibility to direct redevelopment funds to the areas, projects and
programs most in need. Sections 33485 through 33489 of the California Community Redevelopment
Law(the "CRL") deal with the financial merger of project areas.
CURRENT ISSUE:
On June 7, 2010, the Community Development Commission of the City of San Bernardino (the
"Commission") adopted Resolution No. CDC/2010-29, approving an agreement between the Agency
and Rosenow Spevacek Group ("RSG") for the preparation of merger and plan amendment documents
for the Merged Area B Merger and Amendment Project.
With the assistance of Agency Staff, RSG recently completed a blight survey and analysis. This
documentation of blight is necessary to substantiate how existing conditions impact the physical and
economic viability of a proposed redevelopment area. The blight survey considers incompatible land
and building uses building conditions, shifts in use of buildings, building/functional obsolescence,
P:\Agendas\CommDevCommission\CDC2010\11-01-IORSG Professional Services Agreement-Amendment No.1 SRdocx COMMISSION MEETING AGENDA
Meeting Date: 11//01/2010
Agenda Item Number: ►`�'
Economic Development Agency Staff Report
RSG Professional Services Agreement—Amendment No. 1
Page 2
poor roadway configuration, public improvement deficiencies, code enforcement, circulation issues
and environmental constraints to name a few. Based on this analysis and opportunities, Agency Staff,
along with RSG, has determined that additional tasks are needed, consisting of the following:
• Feasibility of adding additional territory to existing redevelopment project areas
• Project Area Committee (PAC) Formation
• Mailings for Joint Public Hearings, Community Meetings and PAC Formation
The merger and amendment procedure required by the CRL for the items listed above is lengthy and
detailed. The process requires the detailed review and analysis of each existing redevelopment project
area and the area under consideration for inclusion in one or more amendment areas as well as
consultation with the taxing agencies and stakeholders. Additionally, a full program environmental
impact report will be prepared to evaluate the merger and amendments.
RSG's current Professional Services Agreement states the following:
4.A. .....In addition, at the option of the Agency and pursuant to subsequent official action of
the governing body of the Agency, Consultant agrees to provide the Optional Services
as set forth in said Exhibit `B"for the not to exceed dollar amounts as provided
therein.
Thus, it is proposed that the Agency amend the current Professional Services Agreement
("Agreement") with RSG for an amount of not to exceed $150,000. The amended amount will be
added to the dollar amount of the original contract with RSG for an overall amount of$446,150.
ENVIRONMENTAL IMPACT:
This amendment to a contract for professional services does not meet the definition of a "project"
under Section 15378 of the California Environmental Quality Act(CEQA).
FISCAL IMPACT:
The cost of the proposed amendment to the Professional Services Agreement with RSG is $150,000,
which is included in the Fiscal Year 2010 -2011 Agency Budget: Consultant Services — Budget Line
6600, Agency Activities.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
<�F_ &1&�
Emil A. Marzullo, Interim Executive Director
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P:\Agendas\Comm Dev Commission\CDC2010\ll-Ol-IORSG Professional Services Agreement-Amendment No.l SR.docx COMMISSION MEETING AGENDA
Meeting Date: 11/01/2010
Agenda Item Number: p y
RESOLUTION NO. 0
1 pr [�
2
i RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
3 OF THE CITY OF SAN BERNARDINO APPROVING AND
4 AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
5 ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT
FOR PROFESSIONAL SERVICES BY AND BETWEEN THE AGENCY
6 AND ROSENOW SPEVACEK GROUP, INCORPORATED
l
7
i
8 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), is a
9 public body, corporate and politic existing under the laws of the State of California, Health and
10 Safety Code 33101, and is charged with the mission of redeveloping blighted and underutilized
11 land pursuant to Health and Safety Code Section 33396; and
12 WHEREAS, on June 7, 2010, the Community Development Commission of the City of San
13 Bernardino ("Commission") approved the Agreement for Professional Services ("Agreement") by
14 and between the Agency and Rosenow Spevacek Group, Inc. (the "Consultant"), for the preparation
a
15 of merger and plan amendment documents for the Merged Area B Merger and Amendment Project;
16 and
17 WHEREAS, since the approval of the Agreement, the Consultant has performed various
I
18 services and tasks as required pursuant to the Agreement; and
19 WHEREAS, the Consultant has been asked to perform additional tasks related to the
20 Merged Area B Merger and Amendment Project; and
i
21 WHEREAS, the additional tasks were anticipated in the Agreement but not previously
22 authorized, and the requirement for undertaking the additional tasks and services have necessitated
23 the increase in the contract dollar amount for professional services.
24 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
25 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
26 FOLLOWS:
27 Section 1. The Commission herby approves Amendment No. 1 to the Agreement by and
28 between the Agency and the Consultant, in the form as attached hereto as Exhibit "A", and as
1
P:\Agendas\Resolutions\Resolutions\2010\11-01-10 RSG,Inc.Professional Services Agreement-Amendment No.1 CDC Reso.docx
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1 presented to the Commission upon adoption of this Resolution, and the Commission hereby
2 authorizes the Interim Executive Director of the Agency to execute Amendment No. 1 on behalf of
3 the Agency together with such technical and conforming changes as may be recommended by the
4 Interim Executive Director of the Agency and approved by the Agency Counsel.
5 Section 2. This Resolution shall take effect from and after its date of adoption by this
6 Commission.
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P:\Agendas\Resolutions\Resolutions\2010\11-01-10 RSG,Inc.Professional Services Agreement-Amendment No.1 CDC Reso.docx
1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND
2 AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
3 ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT
FOR PROFESSIONAL SERVICES BY AND BETWEEN THE AGENCY
4 AND ROSENOW SPEVACEK GROUP, INCORPORATED
5
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
7 Development Commission of the City of San Bernardino at a meeting
8 thereof, held on the day of , 2010, by the following vote to wit:
9 Commission Members: Ayes Nays Abstain Absent
10 MARQUEZ
11 DESJARDINS
12 BRINKER
13 SHORETT
I
14 KELLEY
'err+ 15 JOHNSON
16 MC CAMMACK
17
18 Secretary
19 The foregoing Resolution is hereby approved this day of , 2010.
20
21
Patrick J. Morris, Chairperson
22 Community Development Commission
23 of the City of San Bernardino
24 Approved as to Form:
25
By: Ih
26 Ajency Counsel
F � 27
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P:\Agendas\Resolutions\Resolutions\2010\1 1-01-10 RSG,Inc.Professional Services Agreement-Amendment No.1 CDC Reso.docx
1 EXHIBIT A
2
AMENDMENT NO. 1
3 TO THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
4 AGREEMENT FOR PROFESSIONAL SERVICES
5 (MERGED AREA B MERGER AND AMENDMENT)
6 ROSENOW SPEVACEK GROUP, INCORPORATED
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P.`Agendas'Resolutions lResolutions'z010A11-01-10 RSG,Inc.Professional Services Agreement-Amendment No I CDC Reso docx
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a
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' AMENDMENT NO. 1
TO THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AGREEMENT FOR PROFESSIONAL SERVICES
7
(MERGED AREA B MERGER AND AMENDMENT)
3
} ROSENOW SPEVACEK GROUP, INCORPORATED
3
THIS AMENDMENT NO. 1 to the Redevelopment Agency of the City of San Bernardino
Agreement for Professional Services, Rosenow Spevacek Group, Inc. (this "Amendment No. I"), is
dated as of November 1, 2010, and is entered into by and between the Redevelopment Agency of the
City of San Bernardino, a public body, corporate and politic (the "Agency") and Rosenow Spevacek
Group, Inc. (the "Consultant"), and amends certain provisions of that certain Agreement for
Professional Services with Rosenow Spevacek Group, Inc., dated as of June 7, 2010 by and between
the Agency and the Consultant(the "Agreement'). The Agency and the Consultant agree as follows:
RECITALS
i
WHEREAS, the Agency and the Consultant have executed and entered into the Agreement,
and the Consultant has performed various services and tasks as required pursuant to the Agreement;
and
WHEREAS, the Consultant has been asked to perform additional tasks for the preparation
` +" Merged Area B redevelopment merger and plan amendment documents, which were anticipated in the
! Agreement but not specifically authorized except by subsequent official action.
WHEREAS, the Agency and the Consultant desire to amend the Agreement to provide for an
increase in the contract dollar amount for professional services and the expiration date of the
Agreement pursuant to the terms, covenants and conditions of this Amendment No. 1.
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS SET FORTH ABOVE,
THE MUTUAL PROMISES OF THE AGENCY AND OF THE CONSULTANT IN THIS
AMENDMENT NO. 1 AND FOR OTHER GOOD AND VALUABLE CONSIDERATION THE
RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED BY THE
AGENCY AND BY THE CONSULTANT, THE AGENCY AND THE CONSULTANT AGREE AS
FOLLOWS:
1. The Recitals of this Amendment No. 1 are incorporated herein by this reference.
2. This Amendment No. 1 amends the dollar amount of the compensation payable by the
Agency to the Consultant from $296,150 to $446,150, representing an increase of $150,000, as said
$296,150 figure is provided in Section 4.A. of the Agreement. Section 4.A. of the Agreement is
hereby amended by the insertion of the dollar figure of $446,150 to replace the dollar figure of
$296,150.
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IN WITNESS WHEREOF, the Agency and the Consultant hereto have duly executed this
Amendment No. 1 as of the date first written above.
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
Dated: By:
Emil A. Marzullo, Interim Executive Director
Approved as to Form and Legal Content:
Agene Counsel
CONSULTANT
Rosenow Spevacek Group, Incorporated
Dated: By:
Name:
Title:
2
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