HomeMy WebLinkAboutR05-Public Works
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DEVELOPMENT DEPARTMENT OF THE
CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From:
Roger G. Hardgrave, Dir,
of Public Works/City Engr.
Date:
8-13-92
Subject: Authorization to Exe-
cute Design Reim-
bursement Agreement &
Allocation of
$800,000 - Street
Improvements for
MAL-MART SITE, at
Highland & Boulder
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Synopsis of Previous Commission/Council/Committee Action:
11-04-92
Resolution No. 91-455' adopted by Mayor and Council
authorizing execution of Development Agreement No.
91-02.
03-07-92 -- An amount of $800,000 included on the list of
projects to be financed from Tax Allocation Bond
Funds, at the Commission Budget Priority Workshop.
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Recommended Motion:
1. That the transfer of $800,000 from the $1,000,000 allocated
from bond proceeds for the South "E" Street Bridge Widening,
to Street Improvements for Wal-Mart Site, at 'ghland Avenue
and Boulder, be approved~
2. Adopt resolution. I ~t/z
Roger a d
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Timothy Stein aus, Agency Administrator
Contact Person: Roger G, Hardgrave
Phone:
5025
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Project Area:
Ward(s):
Staff Report,
Agreement & Resolution
Supporting Data Attached:
FUNDING REQUIREMENTS:
Amount: $ 800,000
Bond
Source: Proceeds
Budget Authority:
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Commission/Council Notes:
Agenda Item No.: .5
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DEPARTMENT OF PUBLIC WORKS
STAFF REPORT
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Page 1 of 2
Design Reimbursement Agreement
WAL-MART SITE
Development Agreement No. 91-02, between Gatlin-Doerken
Developments (Developer) and the City, for the construction of a
Wal-Mart Center on the north side of Highland Avenue at Boulder
Avenue, was approved by the Mayor and Common Council on 11-4-91.
The development agreement provides that the City is responsible
for design and construction of certain improvements on Highland
Avenue adjacent to the site. The agreement further provides that
the City may allow the Developer to design and construct the
improvements and be reimbursed for the work under provisions of a
separate agreement between the Developer and City.
In the interest of expediency, Gatlin-Doerken retained ECE
Services, Inc. (formerly Sierra Engineering) to complete the
Highland Avenue design. ECE was a logical choice for this work,
because they were involved in early discussions with Caltrans and
were also preparing the site design for Gatlin-Doerken.
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Gatlin-Doerken is now asking that the City execute the attached
agreement to enable them to be reimbursed for the design cost,
which is estimated at approximately $60,000.00. The Developer
has declined to construct the street improvements, therefore, the
City will have to bid out the work and complete it under a
separate contract.
The attached reimbursement agreement provides, in general, for
the City to reimburse Gatlin-Doerken' s subsidiary, Highland &
Boulder Partners, for 100% of the cost of design of the Highland
Avenue improvements estimated at $60,000,00.
The agreement provides that the City will install the following
items of work:
Item of Work
Order of Magnitude
Cost Estimate
a) Highland Avenue Street Improve-
ments, including Street Lights
$
330,000
b) Traffic Signal at intersection
of Highland Avenue & Boulder
105,000
c) Storm Drain in Highland Avenue
215,000
d) Landscape Highland Avenue Median
and North Parkway (10' Wide)
60,000
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e) Inspection and Contract Administration
30,000
Estimated Cost
$
740,000
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Staff Report
WAL-MART SITE
Page 2 of 2
Funds to reimburse the developer for design and construction of
required improvements are to be provided from bond proceeds.
These funds were included on the priority list of projects
developed at the Commission's budget workshop on 3-7-92.
We recommend that the transfer of funds and agreement be
approved.
8-13-92
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RESOLUTION NO.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT
WITH HIGHLAND & BOULDER PARTNERS, A CALIFORNIA LIMITED
PARTNERSHIP, RELATING TO REIMBURSEMENT FOR DESIGN OF HIGHLAND
AVENUE IMPROVEMENTS (WAL-MART).
BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION,
ACTING ON BEHALF OF THE ECONOMIC DEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1 .
The Chairman of the Community Development
Commission of the City of San Bernardino is hereby authorized and
directed to execute, on behalf of said City, an Agreement with
Highland & Boulder Partners, a California Limited Partnership,
11 relating to reimbursement for design of Highland Avenue
12 improvements (Wal-Mart), a copy of which Agreement is attached
13 hereto, marked Exhibit "A," and incorporated herein by reference
14 as fully as though set forth at length.
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SECTION 2. This agreement shall not take effect until
16 fully signed and executed by all parties. The City shall not be
17 obligated hereunder unless and until the agreement is fully
18 executed and no oral agreement relating thereto shall be implied
19 or authorized.
20 SECTION 3.
The authorization to execute the above-
21 referenced agreement is rescinded if the parties to the agreement
22 fail to execute it within sixty (60) days of the passage of this
23 resolution.
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8-13-92
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BOULDER PARTNE~.
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1 I HEREBY CERTIFY that the foregoing resolution was duly
2 adopted by the Community Development Conunission of the City of
3 San Bernardino at a meeting thereof, held on the
4 day of , 1992, by the following vote, to-wit:
5 Conunission Members: AYES NAYS ABSTAIN ABSENT
6 ESTRADA
7 REILLY
8 HERNANDEZ
9 MAUDSLEY
10 MINOR
POPE-LUDLAM
MILLER
Secretary
The foregoing resolution is hereby approved this
day of
, 1992.
Approved as to form
and legal content:
By ~aJ4 j
./ Agenc ounsel
W. R. Holcomb, Chairman
Conununity Development
Conunission of
City of San Bernardino
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REIMBURSEMENT AGREEMENT
WAL-MART ~ HIGHLAND AVENUE IMPROVEMENTS
This
Reimbursment
Agreement,
hereinafter
called
"Agreement," is entered into effective
1992, between the Ci ty of San Bernardino, a municipal
corporation, hereinafter called "City," and Highland & Boulder
Partners, a California limited partnership, as the assignee of
Gat1in/Doerken Development, and collectively referred to herein
9 as "Developer."
RECITALS
A. The "City" and Gatlin/Doerken Developme~reviously
entered into Development Agreement No, 91-02, which provides for
the development of approximately 24.27 acres of real property
located on the north side of Highland Avenue at its intersection
with Boulder Avenue ("Highland/Boulder Property").
Pursuant
to
Assignment
an
and
Assumption
Agreement
18 recorded June 5, 1992, under
19 Gatlin/Doerken Development assigned
Document
No. 92-238370,
all its
rights under
20 Development Agreement No. 91-02 to Highland & Boulder Partners;
21 Highland & Boulder Partners assumed all of Gatlin/Doerken
22 Development's obligations under Development Agreement No. 91-02.
B, Operative Provision No. 5 of Development Agrep.ment No.
91-02 provides that the "City" will install the public
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improvements on Highland Avenue set forth in Sa, 5b, and 5c
of said provision, and further provides that the "City" may
allow
Gatlin/Doerken
Development
to
plans
prepare
and
specifications for the Highland Avenue public improvements and to
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install these improvements.
C. Operative provision No. 5 provides that in the event
that the .City. allows Gat1in/Doerken Development to prepare
plans and specifications for the Highland Avenue public
improvements and to install those improvements, then the .City.
and .Developer. will enter into such agreements as may be
necessary to facilitate timely payment or reimbursement by the
.City. for the direct and indirect cost of preparation and
approval of the plans and specifications and for the installation
~f the Highland Avenue improvements.
NOW, THEREFORE, the two parties agree, as follows:
DEVELOPER AGREES:
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1. To provide plans and specifications signed by a
registered California Civil Engineer for Public Improvements on
Highland Avenue as identified in operative provision Sa, 5b and
5c of Development Agreement No. 91-02, and
2. To make all corrections or revisions as necessary to
obtain approval from the .City. and Caltrans.
CITY AGREES:
1. To reimburse the .Deve1oper. for one hundred percent
(100%1 of the actual cost, estimated in the amount of $60,000.00,
incurred for design of the Highland Avenue improvements as set
forth in operative provision Sa, 5b, and 5c of Development
Agreement No. 91-02.
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2 . To construct,
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or cause to be constructed, items of
work listed below:
Item of Work
Order of Maqnitude
Cost Estimate
a) Highland Avenue Street
Improvements, including
Street Lights
b) Traffic Signal at inter-
section of Highland and
Boulder
$ 330,000
$ 105,000
c) Storm Drain in Highland Avenue
$ 215,000
$ 60,000
d) Landscape-Highland Avenue
Median and north parkway
(lO' wide)
e) Inspection and Contract ._
Administration
$ 30,000
$ 740,000, ------
3. To provide expedited plan checking services through
.City's. Engineering Division and coordinate expedited plan
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checking through Caltrans' permit section.
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perform any of its obligations as provided in this Agreement and
D.
OTHER MATTERS:
1.
Default by Developer.
If the Developer fails to
fails to cure its nonperformance within 30 days after notice of
nonperformance is given by the City, then the Developer will be
in default and the City will have all remedies which are
available to it at law or in equity, provided, however, that if
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the nature of Developer' s failure to comply or perform is such
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that it cannot reasonably be cured within 30 days, then the
Developer will not be in default if it immediately commences and
thereafter diligently continues to cure its failure.
2.
Default by City.
If the City fails to pay any
reimbursement to the Developer, within 30 days after receipt of
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any progress billing from the Developer or his/her authorized
representative, then the City will be in default and the
Developer will have all of the remedies which are available to it
at law or in equity. If the City fails to perform any obligation
as provided in this Agreement and fails to cure its non-
performance within 30 days after notice of nonperformance is
given by the Developer, then the City will be in default and the
Developer will have all of the remedies which are available to it
at law or ill equitYl provided, however, that if the nature of
City's failure to perform is such that it cannot reasonable be
cured within 30 days, then the City wll not be in default if it
immediately commences and thereafter diligently continues to cure
its failure.
3.
Permitted Delays.
Without limiting the effect of
paragraph No.1, the Developer will be excused from performance
of its obligations as provided in this Agreement during any
period of delay which is caused by matters which are not within
the
Developer's
reasonable
control 1
including,
without
limitation, casualty; acts of God 1 civil commotion 1 warl
insurrection; riots; strikesl walkouts; picketing or other labor
disputes, except that neither the Developer nor its contractors
or subcontractors will be required to settle any labor dispute on
terms other than those which are satisfactory to them in their
sole discretionl market factors; unavoidable shortages of
materials or supplies; damages to work in progress by reason of
fire, flood, earthquake or other casualty; litigation which
prohibits or delays any aspect of the development of the Shopping
Centerl initiatives or referenda; moratorial acts or the failure
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1 to act of the City or any other public or governmental agency or
2 entity (except that acts or the failure to act of the City shall
:I not excuse performance by the City) I unanticipated restrictions
4 which are imposed or mandated by governmental entities or
5 enactment of conflicting City, County, State or Federal laws,
6 regulations or judicial decisions. The Developer will promptly
7 notify the City of any permitted delay as soon as it is possible
8 after it has ascertained such delay and the term of this
9 Agreement will be extended by the period of such delay.
-16 _ 4. Indemnification:
11 (a) With respect to the Developer's performance as
12 provided in this Agreement, the Developer will defend, indemnify
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13 and hold the City and its elected officials, officers and
14 employees free and harmless from any loss, cost or liability
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16 damage to persons or property, including wrongful death and
worker's compensation claims) which result from (i) any
obligation of the Developer which arises from the Development of
the Highland-Boulder Property, including, without limitation,
obligations for the payment of money for material and labor, (ii)
any failure on the part of the Developer to take any action which
it is required to take as provided in this Agreement, (iii) any
action taken by the Developer which it is prohibited from taking
as provided in this Agreement, (iv) any claim which results from
any willful or negligent act or omission of the Developer and (v)
any legal challenge to the City's actions in approving or
implementing this Agreement.
(b) Included in the scope of the foregoing
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indemnification will be all damaqes and claims for damages which
are suffered or alleqed to have been suffered by reason of the
matters which are the subject to the applicable indemnification
and all of the associated leqal fees and court costs (but not
internal costs). wi thout limi tinq the effect of the foreqoinq,
the Developer will have the right to defend aqainst any claim
with respect to which it is indemnifying the City, usinq leqal
counsel of its choice, The City will cooperate with the
Developer and will qive the Developer its full support in
connection with any claim with respect to which the Developer is
indemnifyinq the City.
5. This Aqreement does not release any party from its
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obliqations under Development Aqreement No. 91-02.
6. Notices and Other Communications: All notices or
other communications which are required or permitted to be given
to the parties will be in writing and will be qiven either by
personal service or by mailinq the same by certified or
reqistered mail, postaqe prepaid, return receipt requested, or
overniqht mail delivery service, addressed as follows:
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City of San Bernardino
300 North wDw Street
San Bernardino, CA 92418
Attn: City Administrator
DEVELOPER
Highland , Boulder Partners
12625 High Bluff Drive
Suite 304
San Diego, California 92130
Attn: Franklin C. Gatlin, III
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Highland Plaza, Inc.
11835 Olympic Boulevard
Suite 975
West Los Angeles, CA 90064
Attn: Peter W. Doerken
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COMMUNITY DEVELOPMENT
COMMISSION OF
CITY OF SAN BERNARDINO
ATTEST:
By
W. R. Holcomb, Chairman
Secretary
DEVELOPER
Approved as to form
and legal content:
Highland & Boulder Partners,
a California limited
partnership
By: HIGHLAND PLAZA, INC.
a California corporation
Agency Counsel
By:
APPROVED AS TO FORM AND
LEGAL CONTENT:
GRESHAM, VARNER, SAVAGE,
NOLAN , TILDEN
By
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