HomeMy WebLinkAbout15-Development Services
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CITY OF SAN BERNARDINO REOUEST FOR COUNCIL ACTION
From:
Valerie C. Ross, Director
Subject: Resolution approving Reimbursement
Agreement with Stater Bros. Markets for
Building Inspection Services related to the
Corporate Office and Norton Distribution
Center.
Dept:
Development Services
Date:
January 2, 2008
MCC Date: January 22, 2008
Synopsis of Previous Council Action:
Oct. 17,2005. Resolution No. 2005-341 adopted to award contracts for building inspection services
to Albert Johnson and California Code Check.
Nov. 20, 2006. Resolution No. 2006-400 adopted to increase the purchase order with Albert Johnson
for building inspection services.
Recommended Motion:
Adopt Resolution.
YU1AitJ t. KJ#-
Valerie C. Ross
Contact Person: Valerie C. Ross
Phone:
5357
Supporting data attached:
Staff Report; Resolution & Ward:
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FUNDING REQUIREMENTS:
$ N/A
Amount:
Source:
Acct. Description:
Finance:
Council Notes:
Agenda Item No. 15'
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CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
STAFF REPORT
Subject:
Resolution approving Reimbursement Agreement with Stater Bros. Markets for Building
Inspection Services related to the Corporate Office and Norton Distribution Center.
Background:
In 2005, Development Services issued a Request for Proposals for the provision of contract
building inspection services. On October 17,2005, the Mayor and Common Council approved
Resolution No. 2005-341, which authorized services agreements for contract building inspection
services to Albert Johnson and California Code Check.
In January 2006, Stater Bros. informed staff of the need for at least one full time- dedicated
inspector. Due to the fact that existing building inspection staffing within the Department was
not adequate to meet this additional demand for services, staff contacted Albert JohnSon and
California Code Check. Ultimately, Albert Johnson was selected for the Stater Bros. Markets
project. Funds were budgeted in the Building Division Budget for Fiscal year 2006-07 in the
amount of$106,000.
Fees paid for inspection services on the building permits, less 25.8 % percent City overhead,
were earmarked for the Stater Bros. project to pay for inspection services by Albert Johnson. The
total inspection fees of $162,851 carried the inspection program through September 2007. Stater
Bros. has agreed to reimburse the City for Mr. Johnson's services to date and through final
Certificate of Occupancy for the project. Stater Bros. anticipates that the project will be
completed by October 31, 2008 and the additional inspection fees will total $136,897. However,
the reimbursement agreement extends until December 31, 2008 and allows the total
reimbursement fees to be increased administratively. Stater Bros. will deposit funding on a
periodic basis until completion of the project.
Financial Impact:
N/A.
Recommendation:
Adopt Resolution.
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO APPROVING A BUILDING INSPECI'ION SERVICES
REIMBURSEMENT AGREEMENT WITH STATER BROS. MARKETS RELATED TO
THE CORPORATE OFFICE AND NORTON DISTRIBUTION CENTER.
WHEREAS, on October 17, 2005, the Mayor and Common Council approved Specific
Plan Amendment No. 05-01, General Plan Amendment No. 05-08, Development Permit Type II
No. 04-49, and Tentative Parcel Map No. 17235 for the development of the Stater Bros. Markets
10 Corporate Office and Norton Distribution Center.
11 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
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13 SECTION 1. Tbe City Manager is hereby authorized to execute the Building Inspection
14 Services Reimbursement Agreement (see Exhibit "A" attached and incorporated herein) with
15 Stater Bros. Markets for building inspection services.
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signed and executed by the parties and no party shall be obligated hereunder until the time of
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such full execution. No oral agreement, amendments, modifications or waivers are intended or
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SECTION 2. This Agreement shall not take effect or become operative until fully
authorized and shall not be implied from any act or course of conduct of any party.
SECTION 3. This resolution is rescinded if the parties to the Agreement fail to
execute it within sixty (60) days of the passage of the resolution.
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3 RESOLUTION... APPROVING A BUILDING INSPECTION SERVICES
REIMBURSEMENT AGREEMENT WITH STATER BROS. MARKETS RELATED TO
4 THE CORPORATE OFFICE AND NORTON DISTRIBUTION CENTER.
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I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
Conunon Council of the City of San Bernardino at a
meeting thereof, held
on the
day of
, 2008, by the following vote, to wit:
9 Council Members:
AYES
NAYS
ABSTAIN ABSENT
10 ESTRADA
11 BAXTER
12 BRINKER
13
DERRY
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KELLEY
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16 JOHNSON
17 MC CAMMACK
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City Clerk
The foregoing resolution is hereby approved this
day of
,2008.
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24 Approved as to Form:
25 JAMES F. PENMAN,
City Attorney
Patrick J. Morris, Mayor
City of San Bernardino
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Exhibit A
BUILDING INSPECTION SERVICES
REIMBURSEMENT AGREEMENT
This Building Inspection Services Reimbursement Agreement (this "Agreement") is entered into
and shall be effective as of this _ day of January, 2008 by and between Stater Bros. Markets, a
California corporation ("Stater") and City of San Bernardino, a California charter city (the "City"),
established and existing pursuant to the constitution and laws of the State of California and the City
charter. Stater and the City are referred to herein, individually, as a "Party" and, collectively, as the
HParties. "
Recitals
A. Stater is completing the development of its corporate offices, warehouses and distribution
facilities together with certain on-site and off-site improvements (collectively, the, ~'Project") on
approximately one hundred eighty (180) acres of real property located at the former Norton Air Force Base
in the City ("Property"). The Project includes: two hundred twenty-two thousand two hundred fifty-five
(222,255) square feet of corporate offices; a forty-five thousand (45,000) square foot bakery distribution
complex; a forty-six thousand four hundred ninety-seven (46,497) square foot truck maintenance building;
a forty-six thousand nine hundred eighty- four (46,984) square foot dispatch/returns building; a one million
two hundred thirty- four thousand eight hundred forty-one (1,234,841) square foot dry grocery warehouse;
and a seven hundred thousand thirteen (700,013) square foot refrigerated warehouse, totaling two million
two hundred ninety-five thousand five hundred ninety (2,295,590) square feet.
B. Once complete, the Project is expected to provide jobs for two thousand (2,000) employees,
generate an annual payroll of over One Hundred Sixty-Five Million Dollars ($165,000,000.00) and cause a
significant positive impact on the City economy.
C. Recognizing the magnitude of the Project's positive impact on the City's economy, and how
time-intensive the City's building inspection process can be, the mayor of the City ("Mayor ") and the
common council of the City ("Common Council") authorized the City's staff to retain the services of an
outside contractor ("Contractor") to provide dedicated full time building inspection services ("Services")
for the development ofthe Project. During the past year, the Contractor has been providing SerVices for the
Project and the City has compensated the Contractor for those' Services with monies paid to the City by
Stater.
D. Stater has previously advanced to the City a total sum of One Hundred Sixty-Two Thousand
Eight Hundred Fifty Dollars and Sixteen Cents ($162,850.16) to reimburse the City the,actual costs the
City incurred in compensating the Contractor for the Services the Contractor provided to the Project.
E. The City expects to pay the Contractor an additional sum of One Hundred Thilty-Six
Thousand Eight Hundred Ninety-Seven Dollars ($136,897.00) to compensate the Contractor for Services
necessary to complete the development of the Project including the sum of Twenty-Four Thousand Eight
Hundred Ninety-Seven Dollars (524,897.00) for Services provided through November 15,2007.
F. Pursuant to the ternlS and conditions of this Agreement, the Parties desire that: (i) the City
continue to cause the Contractor to provide the Services necessary to complete the development of the
Project and (ii) Stater pay to the City an amount estimated to be One Hundred Thirty-Six Thousand Eight
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Hundred Ninety-Seven Dollars ($136,897.00) to reimburse the City for the actual costs the City incurs in
compensating the Contractor for the Services necessary to complete the development of the Project.
NOW, THERFORE, in consideration of the mutual covenants and agreements set forth in this
Agreement and other good and valuable consideration, the receipt and sufficiency of which is
acknowledged by each of the Parties, the Parties hereby agree as follows:
Agreements
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I. . City to Cause Contractor to Provide Services. The City shall cause the Contractor to provide
the Services necessary to complete the development of the Project. In the event that the City and the
Contractor enter into a written agreement concerning the Services to be provided by the Contractor, the
City shall approve said agreement as expeditiously as possible so as to not interrupt any Services provided
by the Contractor for the Project. The City shall control all aspects of any agreement between the City and
the Contractor. Stater shall have no authority to direct the Contractor other than to provide suggestions to
the City's staff as to the manner and scope in which the Services shall be undertaken. The City's senior
building inspector ("Senior Building Inspector") shall monitor the work of the Contractor and assist in any
problem resolution and code interpretation. The City shall cause the Contractor, on a semi-monthly basis,
to provide invoices to the City showing services rendered by the Contractor and the costs associated with
the Services based on a Contractor billing rate of Seventy Dollars ($70.00) per hour. During the tenn of
this Agreement, the City shall cause the Contractor to maintain in effect insurance policies of
comprehensive public, general, and automobile liability insurance, in the amount of One Million Dollars
($1,000,000.00) combined single limit, and shall file copies of said policies with the City's risk manager
("Risk Manager"). The policies shall name the City as an additional insured and shall provide for thirty
(30) calendar days notification to the City if said policies are tenninated or materially altered.
2. City to Provide Stater a Summarv of Services Rendered and a Summary of Actual Costs
Related Thereto. The development services department of the City ("Development Services Department")
shall maintain a record of the Services provided by the Contractor and an accounting of the actual costs
incurred by the City for the Services provided by the Contractor. The Development Services Department
shall, on a monthly basis, provide to Stater a summary of the Services rendered by the Contractor and a
summary of the actual costs incurred by the City for the Services provided by the Contractor.
3. Stater to Make Periodic Deposits into Trust Account to Fund Contractor SerVices. Stater
shall periodically deposit into a trust account with the City certain sums mutually agreed upon by the
Parties in order to fund the actual costs incurred by the City for the Services provided by the Contractor.
The City shall not be required to cause the Contractor to proceed with any Services until such time as said
funds are on deposit with the City.
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4. Estimated Total Reimbursement Amount. The Parties acknowledge and agree that the
Contractor working an average of a forty (40) hour work week at Seventy Dollars ($70.00) per hour, will
cost approximately Two Thousand Eight Hundred Dollars ($2,800.00) per week. Based upon the
anticipated completion timeframe, the Parties acknowledge and agree that the estimated total cost for the
Services provided by the Contractor will be approximately Two Thousand Eight Hundred Dollars
($2.800.00) per week over a forty (40) week period totaling One Hundred Twelve Thousand Dollars
($ 112.000.00) to be paid in bi-weekly installments of Five Thousand Six Hundred Dollars ($5,600.00).
Both Parties acknowledge that there may be a need for Services that exceed a forty (40) hour work week,
and the Parties agree that if such actual overtime costs for Services are required, any additional overtime
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costs agreed on between the Parties can be accounted for administratively, without the need to modify this
Agreement. The estimated total amount to be reimbursed to the City by Stater under this Agreement is the
sum of One Hundred Thirty-Six Thousand Eight Hundred Ninety-Seven Dollars ($136,897.00) which
includes Twenty-Four Thousand Eight Hundred Ninety-Seven Dollars ($24,897.00) for Services incurred
by the City through November 15, 2007 plus the sum of One Hundred Twelve Thousand Dollars
($112,000.00) specified above.
5. Term of Agreement. Stater anticipates that construction of the Project will be completed by
October 31, 2008. This Agreement shall remain in effect until December 31, 2008 or until a Final
Certificate of Occupancy is issued by the City, whichever is first.
6. Books and Records. Stater shall have access to and the right to examine the City's building
inspection records and any financial records related to the Project.
7. Time of the Essence. Time is of the essence regarding this Agreement.
8. Indemnification. Each Party shall defend and indemnify the other Party and the other
Party's directors, officers, employees, agents, and authorized volunteers from and against all claims,
demands, or liability for damages arising out of the Party's performance of the terms of this Agreement
where such liability is caused or claimed or alleged to be caused by the willful misconduct, sole negligence
or active negligence of the Party or any person or organization for whom or which the Party is legally
liable.
9. Authority. Each signatory of this Agreement represents that they are dully authorized to
execute this Agreement on behalf of the Party for which such signatory executes this Agreement. Each
Party represents that it has the appropriate legal authority to enter into this Agreement and to perform all
obligations under this Agreement, including, but not limited to, the payment of dollar amounts to the other
Party as required herein.
10. Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance
with the laws of the State of California, except for its conflicts oflaw rules. Any suit, action or proceeding
brought under the scope of this Agreement shall be brought and maintained to the extent allowed by law in
the County of San Bernardino, California.
11. Construction and Interoretation. This Agreement has been arrived at through negotiations
and each Party has had a full and fair opportunity to revise the terms of this Agreement. As a result, the
normal rule of construction that any ambiguities are to be resolved against the drafting Party shall not
apply in the construction or interpretation of this Agreement.
12. Entire Agreement. This Agreement constitutes the entire agreement of the Parties with
respect to the subject matter of this Agreement and supersedes any and all prior oral or written agreement,
understanding, or representation relating to the subject matter of this Agreement.
13. Successors and Assigns. This Agreement shall be binding on and inure to the benefit of the
successors and assigns of the respective Parties to this Agreement. No Party may assign its interests in or
obligations under this Agreement without the written consent of the other Parties, which consent shall not
be unreasonably withheld or delayed.
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14. Waivers. Waiver of any breach or default hereunder shan not constitute a continuing waiver
or a waiver of any subsequent breach either of the same or of another provision of this Agreement and
forbearance to enforce one or more of the remedies provided in this Agreement shall not be deemed to be a
waiver of that remedy.
15. Comoliance with Law. In performing their respective obligations under this Agreement, the
Parties shan comply with and conform to an applicable laws, rules, regulations and ordinances.
16. Third Partv Beneficiaries. This Agreement shan not create any right or interest in any non-
Party or in any member of the public as a third party beneficiary.
17. Notices. All notices, requests, demands or other communications required or permitted
under this Agreement shan be in writing unless provided otherwise in this Agreement and shall be deemed
to have been duly given and received on: (i) the date of service if served personany or served by facsimile
transmission on the Party to whom notice is to be given at the address or addresses as provided below, (ii)
the first day after mailing, ifmailed or dispatched by Federal Express, United States Express-Mail, or other
similar overnight courier service, postage prepaid and addressed as provided below, or (iii) the third (3ro)
business day after mailing if mailed to the Party to whom notice is to be given by first class mail,
registered or certified, postage prepaid, addressed as fonows:
To Stater:
Stater Bros. Markets
301 South Tippecanoe Avenue
San Bernardino, CA 92408
(909)733-5000
(909)379-0450 (FAX)
Attn: Chief Financial Officer
With a copy to:
Varner & Brandt LLP
3750 University Avenue, Suite 610
Riverside, CA 92501
(951 )274-7777
(951)274-7770 (FAX)
Attn: Bruce D. Varner, Esq.
To the City:
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92401
(909)384-5122
(909)384-5138 (FAX)
Attn: City Manager
With a copy to:
{sigllatuI'e page follows]
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IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the date
first above written.
Attest:
By:
Rachel Clark, City Clerk
Approved as to Form:
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STATER
STATER BROS. MARKETS,
a California corporation
By:
Jack H. Brown
Its: Chairman of the Board and
Chief Executive Officer
CITY
CITY OF SAN BERNARDINO,
a California charter city
By:
Fred Wilson
Its: City Manager
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