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HomeMy WebLinkAbout02-Community Development CIT~- OF SAN BERNARDIN~ - REQUE~T FOR COUNCIL ACTJI~N -?f?;j) From: KENNETH J. HENDERSON, DIRECTOR Subject: REHABILITATION LOAN FOR HISPANIC CHAMBER OF COMMERCE Dept: COMMUNITY DEVELOPMENT Date: DECEMBER 23, 1986 Synopsis of Previous Council action: On November 18, 1985, the Mayor and Common Council considered this item and referred it to the Ways and Means Committee for review. On December 2, 1985, the Mayor and Common Council adopted resolution #85-503 authorizing the execution of a grant deed conveyance and setting a joint public hearing to consider the proposed sale of the property. On January 1, 1986, the Mayor and Common ncil conducted a public ng and authorized the sale of property locat at 972 North Mt. Vernon Avenue, San rnardino, to the Inland Empire Hispanic Chamb of Com Recommended motion: Move to approved CDBG Rehabilitation Loan for the Hispanic Chamber of Commerce in the amount of $ 81,000.00 _~ u. ~~~ Contact person: Ken Henderson/Nestor Nazario Phone: 5065 Supporting data attached: Staff Report Ward: 1 FUNDING REQUIREMENTS: Amount: Sou rce: CDBG Finance: J./a.-.- c::;:' ~ Council Notes: 75-0262 Agenda Item No. ~, CITY OF SAN BERNARDIN" - REQUE~T FOR COUNCIL ACT'')N STAFF REPORT In June of 1986, the r.1ayor and Common Council approved the FY 1986/1987 "Statement of Objectives and Projected Use of Funds", which included loan funds for the Hispanic Chamber of Commerce. Over the last several months, staff has met with the Hispanic Chamber Board, Frank Tracadas, Civil Engineer; Charles Dunham, Building and Safety; Ron Running, Planning Department, and the Development Review Committee (DRC). In addition to meeting with the Senior Assistant City Attorney, Allen Briggs, staff also consulted with the Department of Public Works and the following summarizes the project to date: On July 7, 1986, Frank Tracadas, Civil Engineer was selected by the Inland Empire Hispanic Chamber of Commerce (HCC) to prepare the required engineering report. On July 10, 1986, copies of the engineering report were received. Also received from BCC were the By Laws and . Corporate resolution. Still pending; Corporate minutes referencing board's decision to authorize Board Chairman to enter into agreements on behalf of HCC. On July 16, 1986, staff received a request from Building and Safety to obtain plans addressing handicap items. A meeting was called with all interested parties to expedite the requirements by Building and Safety and to obtain a more detailed report (written summary) from the Engineer. A termite report was also requested by staff. On July 28, 1986, application for building permit was sub- mitted to Building and Safety. It was determined that a permit change plus fees would be incorporated within the loan, i.e., paid by the HCC. On September 22, 1986, in order to prepare for the con- tractors to bid on the project, staff requested that Frank Tracadas (engineer> submit a summary to guide staff rehab- ilitation specialists in preparing the contractor's work write-up. On October 8, 1986, a meeting was held with Frank Tracadas, Charles Dunham and staff in order to expedite receipt of the summary from the Engineer and development of a plot plan for the Chamber parking lot indicating landscape planter and lighting as required by Design and Review Committee. On October 22, 1986, staff received plot plans and summary of the structural plans. Staff reviewed same with Building and Safety. 75-0264 On October 27, 1986, a rough estimate was completed by staff with an estimated total of $69,676.00. liCC was advised and also reminded that a copy of the minutes of the meeting wherein the decision to borrow money was made for the authorized amount. On November 17, 1986, a full write-up was completed by staff. On November 25, 1986, staff held Owner's Conference with liCC Board representatives in order to review each line item on the write-up, prior to obtaining bids from contractors. On December 5, 1986, initial bidding on the project was extended to December 10, 1986 in order to allow additional minority contractors to bid on the project. On December 10, 1986, bids from contractors were received and reviewed by staff. The following contractors were the only bidders to submit estimates: Clyde Thompson: Dave Davies: Howard Miller: $74,178.00 $75,200.00 $74,239.00 Based on review of the cost estimates by the contractor and staff, the lowest acceptable bidder is Clyde Thompson. On December 22, 1986, staff advised HCC that date certain will be during the month of January subject to Council's approval. The rounded total for the loan has been cal- culated as follows: Contractors' Bid: Contingency: Structural Plans: Property Appraisal: Plot Plans: Title Report: TRW: Recording: $74,178.00 $ 3,417.00 $ 1,000.00 $ 1,200.00 $ 450.00 $ 405.20 $ 40.00 $ 7.00 Total: $80,698.00 Rounded Total: $81,000.00 On December 23, 1986, staff submitted all the proper documents to the City Attorney, in order to obtain a legal opinion. It should be noted that the following concerns have been expressed by Allen Briggs. a) The promissory note does not have a "due date" and violates state law. b) The proposed deferred loan does not anticipate the assessment and collection of interest. If the interest is deferred, the City will be unable to comply with HUD guidelines concerning the loan-to-value ratio, (must not exceed ninety percent (90%)). Accordingly, staff recommends approval of the loan with the under- standing that loan will be in compliance with all state and federal rules and regulations. K~.Gke~ Di rector Community Development .Department file: hispanicstaffrp