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HomeMy WebLinkAboutR31-Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY C FROM: Emil A. Marzullo Interim Executive Director SUBJECT: Assistance League of San Bernardino located at 580 West 6" Street, San Bernardino - Additional Funding (Central City North Redevelopment Project Area) DATE: February 11, 2008 -----.---------------------- Svnonsis of Previous Commission/Council/Committee Action(s): On September 6, 2007, Redevelopment Committee Members Estrada, Johnson and Baxter unanimously voted to recommend that the Community Development Commission consider this action for approval. Recommended Motion(s): (Community Develonment 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. I to the Maintenance and Operation Contract by and among the Agency, the County of San Bernardino and the Assistance League of San Bernardino (580 West 6" Street, San Bernardino - Central City North Redevelopment Project Area) C ------------------------------ Contact Person(s): Colin Strange Phone: (909) 663-1044 Project Area(s): Supporting Data Attached: Central City North Redevelopment Project Area Ward(s): It! Staff Report It! Resolution( s) Iii Agreement( s )/Contract( s) 0 Map( s) 0 Letter( s) FUNDING REQUIREMENTS: Amount: $ 53,000 Source: Community Reinvestment Funds 2007-2008 EDA Budget Budget Authority: :tJ1 ~ Signature: Emil A. Marzullo, Int . Executive Director Services Director Commission/Council Notes: c --------------------------.-----.-------------------------------------------------------------- P\Agendas\Comm Dev Commission\CDC 2008\02-19-08 ..usistancc League - Amendmenl No. I SR.~ COMMISSION MEETING AGENDA Meeting Date: 02/19/2008 Agenda Item Number: -&3..L c c c ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ---------------*--------------*------------------------------------------------------------- ASSISTANCE LEAGUE OF SAN BERNARDINO LOCATED AT 580 WEST 6TH STREET, SAN BERNARDINO - ADDITIONAL FUNDING (CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA) BACKGROUND: On November 21, 2005, the Community Development Commission of the City of San Bernardino ("Commission") authorized the Commission Chairperson to execute a Maintenance and Operation Contract ("Contract") by and among the County of San Bernardino ("County"), Assistance League of San Bernardino ("Grantee") and the Redevelopment Agency of the City of San Bernardino ("Agency") for the rehabilitation of the Grantee's headquarters at 580 West 6th Street, San Bernardino. The eastern part of this 100 year old building has tilted as much as 4 inches on the eastern side, and several other serious health and safety issues also exist such as an unusable fire escape and handicap access deficiencies (collectively, "Deficiencies"). The Grantee is a non-profit organization, which for 58 years has provided essential dental services to lower income children, as well as a school clothing program, and like most local non-profits, their financial resources are limited. Based upon an initial engineering assessment, which was provided pro-bono by a local engineering consultant, the cost was estimated at $450,000 to correct these Deficiencies. It must be stressed that this dollar figure was merely an expert estimate in the absence of a more extensive engineering assessment. In as much as the Grantee is located in downtown San Bernardino, it also provides assistance to children outside the city limits of San Bernardino; thus, the County of San Bernardino Economic Development Agency contributed 50% of the funds in the amount of $225,000 while the Agency funded the other 50% from the Community Reinvestment Fund, provided that the Grantee continued to provide the same level of philanthropic service to the community for a minimum of 10 years following the date of completion of the improvements. CURRENT ISSUE: After approval of the Contract by the Commission, Agency Staff initiated .expert architectural and engineering evaluation of the building, including its method of construction and an assessment of its Deficiencies together with a complete set of structural and engineering drawings. The cost of these studies and plans amounted to $41,000. This was unfortunately a relatively lengthy process as the number of engineers in this area qualified to undertake an assessment of this nature were very limited, and the demand for said expert services at that time was very high. After Agency Staff was in possession of the information required to prepare a comprehensive bid document, the scope of work was included in the bid document to cure the Deficiencies. Unfortunately, no bids were received although two contractors attended the walk- through. When questioned why they had not submitted a bid, both contractors indicated that the job was too complicated and the estimated costs for the work exceeded the remaining budget of $409,000. Moreover, because of the age of the building and the type of work needed, the two contractors were not able to bond for the job. Subsequently, the contractors were asked to reconsider and separate their bid into the following 4 components: Base Bid: Correct the structural deficiencies of the building and rectify all health and safety and ADA requirements (includes foundation); Alternate No.1: Wrap the building in II, inch plywood, re- P,\Agendas\CoTl'lll'l Oev CommissionlCOC 2008\02-19-08 Assistance League - Amendmenl No 1 SR dot COMMISSION MEETING AGENDA Meeting Date: 02/1912008 Agenda Item Number: ~ c c c Economic Development Agency Staff Report Assistance League - Amendment No. 1 Page 2 stucco and repaint; Alternate No.2: Replace 4 windows on the west side to match existing wood frame where necessary; and Alternate No.3: Insulate the building for energy conservation. Only one qualified bid was subsequently received from Felix Francisco of Francisco Construction who bid to undertake the Base Bid and Alternate No. I in the amount of $408,071 ("Scope"). Thus, no additional funds were available for any contingencies. The cost of Alternate No.2 was $7,600 and Alternate No.3 was $38,600 making the total bid $454,271, which together with the $41,000 already spent on engineering drawings, brought the total project to $495,271. In preliminary discussions between the Agency Executive Director and County Staff, it was mutually agreed that the additional repairs are necessary and that it would be cost effective to undertake these additional repairs concurrently with the Scope contained in the Base Bid and Alternate No. I. Agency and County Staff agreed to both approach their governing bodies for an additional $ 106,000 total amount. Thus, the additional work was then intended to be funded 50/50. between the Agency and the County. This would enable the project to be completed as originally anticipated and provide a contingency factor of $60,729 should unforeseen conditions arise. The County has, however, since declined to contribute any additional funds to the Project so Agency Staff is proceeding with the original request as proposed to the Redevelopment Committee on September 6, 2007. The Agency will contribute $53,000 and cover the cost of the additional work in Alternate Nos. 2 and 3 and to leave a small contingency of $7,729 for any unforeseen items. Not only is rehabilitation of this historic old house a vital link to preserving the history of our community for generations to come, it is also regarded as an integral part of the Agency's efforts to revitalize the Central City North Redevelopment Project Area. Members of the Grantee donate an inordinate amount of time to raise the funds to provide the vital dental and other care to the underprivileged children of the community. ENVIRONMENTAL IMPACT: Categorically exempt under California Environmental Quality Act ("CEQA") Guidelines, Section 15301, Existing Facilities. FISCAL IMPACT: $53,000 from Community Reinvestment Funds. RECOMMENDATION: That the Communi elopment Commission adopt the attached Resolution. Emil A. Marzullo, Executive Director P,\Agendas\Comm Dev ComrnissionlCDC 2008\02_19_01 AssislUICe League. Amendment No. I SR.doc COMMISSION MEETING AGENDA Meeting Date: 02/1912008 Agenda Item Number: 1..31- 1 C 2 3 4 5 6 7 8 c RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE MAINTENANCE AND OPERATION CONTRACT BY AND AMONG THE AGENCY, THE COUNTY OF SAN BERNARDINO AND THE ASSISTANCE LEAGUE OF SAN BERNARDINO (580 WEST 6th STREET, SAN BERNARDINO - CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA) 21 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY 22 OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: 23 Section 1. The Commission hereby approves the attached Amendment No. I in the form 24 presented at the meeting at which this Resolution is adopted. The Executive Director of the Agency is 25 hereby authorized and directed to execute Amendment No. I on behalf of the Agency, together with 26 such technical and non-material conforming changes as may be recommended by Agency Counsel. C 27 28 / / / Section 2. The Resolution shall become effective immediately upon its adoption. I P\Agenda5\Rcsolutions\Resolutions\2008\02-19-08 Assistance League Amendmem No I ("DC Rnodoc 1 C2 C27 28 3 4 5 6 7 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 MAINTENANCE AND OPERATION CONTRACT BY AND AMONG THE AGENCY, THE COUNTY OF SAN BERNARDINO AND THE ASSISTANCE LEAGUE OF SAN BERNARDINO (580 WEST 6th STREET, SAN BERNARDINO - CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 8 Development Commission of the City of San Bernardino at a , 2008, by the following vote to wit: meeting Navs Abstain Absent 19 Secretary 20 The foregoing Resolution is hereby approved this day of ,2008. 21 22 23 24 Patrick J. Morris, Chairperson Community Development Commission of the City of San Bernardino Approved as to Form: 25 26 By: r:;:;.."=77Ail L - Age~~~f- 2 P:\Agendas\Resolulions\Resolulions\2008\OZ.19.08 AssiS'lance Leque Amendment No I CDC Roo_doc c c c AMENDMENT NO.1 TO THE MAINTENANCE AND OPERATION CONTRACT (Assistance League of San Bernardino) THIS AMENDMENT NO. 1 TO THE MAINTENANCE AND OPERATION CONTRACT (this "Amendment No.1") is dated as of February 19, 2008, by and between the Assistance League of San Bernardino, a California non-profit corporation (the "Grantee"), and the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the "Agency"), and the County of San Bernardino Department of Community Development (the "County") shall not be a party to this Amendment No. 1 nor bound by any provision hereof, and this Amendment No. 1 is entered into in light of the facts set forth in the following Recital paragraphs: - RECITALS - A. The Grantee, the Agency and the County have previously entered into an agreement entitled, "Maintenance and Operation Contract," dated November 21, 2005 (the "Contract"); and B. Since the effective date of the Contract, the Grantee has, in collaboration with Agency Staff, commenced the improvements ("Project"), as this term is defmed in the Contract, and referred to as the Base Bid to correct the structural deficiencies of the building (including the foundation) and rectify all health and safety and Americans with Disabilities Act ("ADA") requirements and Alternate No. 1 which includes wrapping the affected portion of the building with new plywood, re-stucco and repainting in the amount of Four Hundred Eight Thousand Seventy-One Dollars ($408,071). After this is complete, Alternate Nos. 2 and 3 need to be undertaken to replace the damaged windows caused by the subsidence of the building and insulation of the building for energy conservation which together with the engineering and architectural fees of Forty-One Thousand Dollars ($41,000) already disbursed will bring the total to Four Hundred Ninety-Five Thousand Two Hundred Seventy-One Dollars ($495,271), excluding contingency. However, unforeseen cost overruns are anticipated as work progresses due in part to the fact that the estimates used to prepare the original Contract were completed prior to the architectural and structural engineering reports being undertaken. Such items were funded as part of the original Contract and no funds are remaining to pay Alternate Nos 2 and 3 or any unforeseen contingencies that may occur; and C. The Contract Section 4 anticipated that additional funding may be provided either by the Agency or the County. Said provision reads in part as follows: "This condition, however, does not preclude the County and the Agency from respectively providing additional funding at the sole and absolute discretion of either County or Agency, as applicable"; and D. The Grantee and the Agency believe it is appropriate to consider and approve this Amendment No. I in order that the Grantee may complete the Project as specified in the Project description as approved in the original Contract. 1 P\A~ndas\Agenda Attachmenls\Ajrmts-Amend 2008\02-19-08 AssiSlIlltCl: Leaaue Arntndment No. I.doc c c c NOW, THEREFORE, THE GRANTEE AND THE AGENCY DOES HEREBY AGREE AS FOLLOWS: Section 1. The Grantee and the Agency hereby acknowledge and agree that notwithstanding any term of the Contract to the contrary, the Agency shall increase its contribution by Fifty-Three Thousand Dollars ($53,000) for a total of Two Hundred Seventy- Eight Thousand Dollars ($278,000) plus the Two Hundred Twenty-Five Thousand Dollars ($225,000) as previously approved by the County pursuant to the Contract. Grantee agrees to utilize such additional Agency funds for the purposes of undertaking Alternate Nos. 2 and 3 as bid by the contractor presently under the Contract with the Grantee, and if funds remain available from said Fifty-Three Thousand Dollars ($53,000) amount of the Agency contribution after the completion of Alternate Nos. 2 and 3, then such excess may be used as a contingency amount to be applied for payment of the total project expenditures related to unforeseen items arising during the course of construction. Section 2. Except as modified or amended by this Amendment No. I, all of the provisions of the Contract shaH remain in full force and effect following the Effective Date of this Amendment No.1. IN WITNESS WHEREOF, the Assistance League of San Bernardino and the Redevelopment Agency of the City of San Bernardino executed this Amendment No. 1 as of the dates written next to the signatures of their duly authorized representatives, below. AGENCY Date: 6L/ 12{ Or Redevelopment Agency of the City of San Bernardino, a public body, corporate olitic ~ By: xecutive Director Emil A. Marzullo, IIi . Approved as to Form and Legal Content: BY:~~ GRANTEE Date: j-3/-of . Assistance Leagt!e-ofthe City of San Bernardino :~~l~t" Car H, F J 'l;;;l:)u!t;ul 2 P\Agendas\Agenda Anach~nlS\AIJ11U-A1TIl!1Id 2008\02-19-08 Assistance League A~nt No. I.dlx