HomeMy WebLinkAboutR43-Economic Development
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
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FROM: Emil A. Marzullo
Interim Executive Director
SUBJECT:
California Property Specialists, Inc. ("CPSI"),
Professional Services Agreement - Property
Acquisition, Management, Relocation and
Demolition Services - Slh Street and Meridian
Avenue Project
DATE: September 19, 2008
Synopsis of Previous Commission/Council/Committee Action{s):
On September 4, 2008, Redevelopment Committee Members Estrada, Johnson and Baxter unanimously voted to recommend
that the Community Development Commission consider this action for approval.
Recommended Motionis):
iCommunitv Development Commission)
Resolution of the Community Development Commission of the City of San Bernardino approvmg and
authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino
("Agency") to execute a Professional Services Agreement by and between the Agency and California Property
Specialists, Inc., for acquisition and relocation services (5th and Meridian Project)
Contact Person(s):
Carey K. Jenkins
Phone:
(909) 663-1044
Project Area(s):
Supporting Data Attached:
N/A
Ward(s):
6
o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) D Map(s) D Letter(s)
FUNDING REQUIREMENTS:
Amount: $ $276,700
Source: 20% Low- and Moderate-Income Housing Fund
Budget Authority:
2008-2009 Budget
Signature:
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?:\Agcndas\Comm DcvCommission\CDC 2008\10-06-08 CPSI- 5th and Meridiall Project SR FINAL.doc
COMMISSION MEETING AGENDA
Meeting Date: 10/0612008
Agenda Item Number: R 43
IO-C6-o0
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
CALIFORNIA PROPERTY SPECIALISTS, INC. ("CPSI"), PROFESSIONAL SERVICES
AGREEMENT - PROPERTY ACQUISITION, MANAGEMENT, RELOCATION AND
DEMOLITION SERVICES - 5TH STREET AND MERIDIAN AVENUE PROJECT
BACKGROUND:
On September 15, 2008, the Community Development Commission of the City of San Bernardino
("Commission") authorized Agency Staff to initiate Phase I of the project which includes the acquisition
of existing bank owned properties. The project is a priority for the Redevelopment Agency of the City of
San Bernardino ("Agency") as a result ofthe blighting effects the current apartment complexes are having
Oll the immediate area which is generally comprised of single-family residences. Given the high number
of bank owned properties and the overall state of housing prices, the Agency has a unique opportunity to
acquire these properties at drastically reduced prices in order to obtain site control for future development.
Once the properties are acquired, the Agency will issue a request for proposals to the development
community in an attempt to seek the best redevelopment solution on an open and competitive basis.
On July 8, 2008, a request for proposals was released to seven qualified firms for acquisition and
relocation services in support of the 5th and Meridian Project. Candidates were identified through the
Community Redevelopment Association ("CRA") Directory of Members and Services for 2007-2008 and
the Agency's list of firms who have recently provided acquisition and relocation services on past projects.
On July 18, 2008, four responses were received and reviewed by Agency Staff. Two firms were
subsequently interviewed. Through this process, California Property Specialists, Inc. ("CPSI"), was the
firm recommended for selection. The decision was based on CPSI's extremely competitive bid relative to
their competition as well as their clear understanding of the Agency's needs to marshal the required
resources through all phases of the Project.
CURRENT ISSUE:
At the April 10, 2008, Redevelopment Committee meeting, a staff presentation was delivered concerning
the 5th and Meridian Project. The presentation consisted of an overview of the 18 separate four-plex
apartments, their ownership status, a review of Part I crimes associated with this location, and a residual
land value analysis that contemplated several redevelopment alternatives. As a result of the presentation,
the Redevelopment Committee requested that Agency Staff return with a specific redevelopment proposal
that included not only the residential portions but also the broader area that encompassed the commercial
frontage along Foothill Boulevard.
Based on this request and after adequate staff time to identify a redevelopment strategy, a decision was
made to formulate a preliminary budget, identify possible funds from existing Agency resources and seek
authority to procure the services of an acquisition and relocation consultant. After all responses were
received and after a thorough staff review, which included interviews with the top two candidates, the
following ranking was applied:
?:\Agendas\Comm Dev Commission\CDC 2008\10-06-08 CPSI - 5lh and Meridian Projed SR FINAL.doc
COMMISSION MEETING AGENDA
Meeting Date: 10/06/2008
Agenda Item Number:
Economic Development Agency Staff Report
CPSI - 5th Street and Meridian Project
Page 2
Replacement!
Acquisition Relocation Relocation Total
Resnondent Residential Commercial Plans Residential Commercial Pronosed
I. CPSI 45,900 26,800 8,500 167,900 27,600 276,700
2. Shober 63,000 55,000 5,750 180,000 37,500 341,250
3. Paragon 51,300 28,500 12,000 205,200 26,000 323,000
4. L. Van Dam - 24,000 - - - 24,000
The top candidate, CPSI, has been providing right-of-way services for governmental organizations in
Southern California since 1991. Based in Santa Ana, California, CPSI will be led by Kent Jorgensen and
Georgia Marquis for this engagement. This same team recently completed the successful acquisition and
relocation efforts on behalf of the Agency at the Arden Guthrie Project. The scope of services includes a
full range of required activities such as:
I. Property acquisition;
2. Property board-up and overall management of the site;
3. Relocation services for displaced residents;
4. Demolition services (provided through a sub-contractor); and
5. Development ofthe Relocation Plan and Replacement Housing Plan.
The total cost for these services is expected not to exceed $276,700. Funds used to pay for these services
are derived from the Agency's 20% Low- and Moderate-Income Housing Fund ("Housing Fund").
Specific demolition services will be managed through CPSI and paid by the Agency. Housing Funds
estimated in the amount of $625,000 have been preliminarily identified for this activity. This amount
includes a portion to manage any lead-based paint remediation. It is anticipated that subcontracting the
demolition services through CPSI will help to streamline the process and minimize possible downtime
between activities. Language will be placed in the CPSI agreement that fl:quires demolition contractors to
be selected based on the lowest responsible bid from no less than three responses. CPSI will ensure the
payment of prevailing wages for these services and will give Agency Staff the opportunity to review all
procurement procedures and make final selection on the recommended demolition contractor(s) provided
that all demolition work being contracted at one time does not exceed $25,000. Prior to the release of any
funds to pay invoices for this activity, CPSI will provide proof that the demolition services were
successfully rendered. Should there be any contracts for demolition in excess of $25,000 the Community
Development Commission of the City of San Bernardino ("Commission") would have to approve the
action.
Based on Agency Staff estimates, the time required to negotiate, acquire, relocate and demolish the
residential properties associated with Phase I will be completed sometime during FY2009-2010.
Acquisition of the commercial sites associated with Phase II should overlap the latter portion of the
residential phase. Exact timing for this activity, however, is a function of Agency funding and the
selection of the appropriate developer that will assist the Agency with scoping out the appropriate
alternative that will complement Phase I and the surrounding community.
P:\Agcndas\Comm Dev Commission\CDC 2008\10-06-08 CPSl- 5th and Meridian Project SR FINAL.doc
COMMISSION MEETING AGENDA
Meeting Date: 10/06/2008
Agenda Item Number:
Economic Development Agency Staff Report
CPSI - 5th Street and Meridian Project
Page 3
ENVIRONMENTAL IMPACT:
None.
FISCAL IMPACT:
The costs for the stated services of $276,700 will be paid from the Agency's Housing Fund. In addition
to these costs, acquisition fees, relocation fees payable to displaced residents, and demolition fees are
estimated to be $4,950,000, $565,000 and $625,000, respectively. This would total approximately
$6,140,000 for the site costs, excluding the services provided by CPS1.
There are approximately $2,900,000 of Agency Housing Funds that could be re-appropriated for this
Project if the Commission determines that these funds would not be spent on other projects for which they
were initially intended. This amount is a result of a review of existing projects that have been allocated
funds in the FY2008-2009 Budget but are not moving forward or can be financed with other Agency
resources.
In addition, the Agency is currently in direct negotiations with Fannie Mae for a credit line facility to be
used to fund the completion of Phase 1. It is anticipated that an award of such funds would be available in
October 2008. However, if the credit line is not awarded, the Agency's alternative plan is to utilize the
existing funds available and spread the cost ofthe Project over two funding cycles through FY2009-2010.
Based on current estimates, if the Agency were required to use only those funds presently available, it
would be able to acquire approximately one-half of the existing residential structures.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
L-
Emil A. Marzullo, Inter!
?;\Agelldas\Comm Dev Commission\CDC 2008\10-06-08 epSl- 5th and Meridian Projcct SR FINAL,doc
COMMISSION MEETING AGENDA
Meeting Date: 10/06/2008
Agenda Item Number:
1
2
3
4
5
6
7
8
({;' (~ ~[:sr\~ I
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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 A PROFESSIONAL SERVICES AGREEMENT BY AND
BETWEEN THE AGENCY AND CALIFORNIA PROPERTY SPECIALISTS,
INC., FOR ACQUISITION AND RELOCATION SERVICES (5th AND
MERIDIAN PROJECT)
WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") has
9 identified 18 privately owned residential properties ("Residential Properties") that contain
10 approximately 72 housing units; and
11 WHEREAS, the Agency has also identified approximately ten privately owned commercial
12 properties ("Commercial Properties") adjacent to the Residential Properties that contain a variety 0
13 commercial uses and vacant land; and
14 WHEREAS, it is the intent of the Agency to initiate the acquisition of the Residential
15 Properties in order to redevelop the site to include an affordable housing component; and
16 WHEREAS, it is the intent of the Agency to acquire the Commercial Properties at a later
17 date after the Residential Properties have been acquired and a specific redevelopment initiative has
18 been established for both the Residential Properties and the Commercial Properties and approved by
19 the Community Development Commission of the City of San Bernardino ("Commission"); and
20 WHEREAS, the California Community Redevelopment Law ("CRL") requires that prior to
21 displacement of any resident, a Relocation Plan must be prepared in order to assess the relocation
22 and housing needs of each resident and to quantifY relocation benefits in accordance with State
23 Law; and
24 WHEREAS, the Agency is required to assist and provide relocation servIces for the
25 residents that are displaced as a result of redevelopment activities per California Government Code
26 Section 7620; and
27 WHEREAS, California Property Specialists, Inc. ("CPSI" or "Consultant"), has numerous
28 years of experience and expertise in all areas of acquisition and relocation services, preparation of
I
P:\Agendas\Reso\u1ions\Resolutions\2008\l(l...()6..{l8 CPSI. Sth and Maidian Project CDC Rcso FINAL.doc
1 relocation plans and preparation of replacement housing plans in accordance with the Uniform
2 Relocation and Real Property Acquisition Policies and the State of California Housing and
3 Community Development Guidelines (California Code of Regulations, Title 25) and the Agency
4 seeks to engage the services of the Consultant to implement the Agency's acquisition and
5 relocation responsibilities pursuant to the terms in the Professional Services Agreement
6 ("Agreement") attached hereto and incorporated herein by reference.
7 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
8 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
9 FOLLOWS:
10
Section 1.
The Commission hereby approves the Agreement by and between the
11 Agency and the Consultant in the form as attached hereto and as presented to the Commission upon
12 adoption of this Resolution, and the Commission hereby authorizes the Interim Executive Director
13 of the Agency to execute the Agreement on behalf of the Agency together with such technical and
14 conforming changes as may be recommended by the Interim Executive Director of the Agency and
15 approved by the Agency Counsel.
16 Section 2.
17 III
18 III
19 /II
20 III
21 III
22 III
23 III
24 III
25 III
26 III
27 III
28 III
The Resolution shall become effective immediately upon its adoption.
2
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1
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 A PROFESSIONAL SERVICES AGREEMENT BY AND
BETWEEN THE AGENCY AND CALIFORNIA PROPERTY SPECIALISTS,
INC., FOR ACQUISITION AND RELOCATION SERVICES (5th AND
MERIDIAN PROJECT)
2
3
4
5
6
7
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
,2008.
day of
21
22
23
24
Patrick J. Morris, Chairperson
Community Development Commission
of the City of San Bcrnardino
Approved as to Form:
25
26 By: ~/
27 Agenc ~JP~l
28
3
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CALIFORNIA PROPERTY SPECIALISTS, INC.
PROFESSIONAL SERVICES AGREEMENT
For
Acquisitions, Relocation and Replacement Housing Plan Preparation, Property Management and
Demolition Procurement Services
This Professional Services Agreement (this "Agreement") is made and entered into as of October
6, 2008, by and between the Redevelopment Agency of the City of San Bernardino (the "Agency"), a
public body, corporate and politic and California Property Specialists, Inc., a California corporation (the
"Consultant").
RECITALS
WHEREAS, the residents of the eighteen (18) four-plex apartments will need to be permanently
relocated to allow for future development which will include an affordable housing component; and
WHEREAS, the owners of the various parcels along the frontage of Foothill Boulevard will need
to be permanently relocated to allow for future development within the Project Area; and
WHEREAS, California Community Redevelopment Law ("CRL") requires that prior to
displacement of any resident, a Relocation Plan be prepared in order to assess the relocation and housing
needs of each resident and to quantify relocation benefits per California Government Code Section 7620
State Law; and
WHEREAS, California Property Specialists, Inc. ("CPSI" or "Consultant") has numerous years
of experience and expertise in all areas of property acquisition, relocation and replacement housing plan
preparation, relocation services property management and demolition procurement services in
accordance with the Uniform Relocation and Real Property Acquisition Policies and the State of
California Housing and Community Development Guidelines (California Code of Regulations, Title 25)
and the Agency wishes to engage the services of the Consultant to carryout the Agency's acquisition,
relocation related responsibilities, property management and demolition procurement services pursuant
to the terms of this Agreement.
NOW, THEREFORE, in consideration of mutual covenants set forth herein and the mutual
benefits to be derived therefrom, the parties agree to enter into this Agreement as follows:
1. TERM.
This Agreement shall commence as of the day and year first written above and shall remain in full
force and effect for a period of Two (2) years (See Exhibit "A" for further time frames to perform
the Scope of Services).
2. CONSULTANT RESPONSIBILITIES.
The Consultant shall perform each element of the work described in the Scope of Services
attached hereto as Exhibit "A", and within the times specified herein and in the Scope of Services.
The Consultant commits the principal personnel listed below to the Scope of Services:
Kent Jorgensen
Georgia Marquis
1
P:lA8endas\Agenda Attachmenu\Airfnts-Amelld 2008\10-06-08 CPS! Professional Services Agreemenl.doc
Acquisition Consultant:
Relocation Consultant:
3. AGENCY RESPONSIBILITIES.
The Agency shall provide the Consultant with any documentation, records, reports, statistics or
other data or information pertinent to the Scope of Services, which are reasonably available to the
Agency, and n~cessary to complete assignments.
4. CONFIDENTIALITY OF REPORTS.
The Consultant shall keep confidential all reports, information and data received, prepared or
assembled pursuant to performance hereunder. Such information shall not be made available to
any person, news release, firm, corporation, or entity without prior written consent of the Interim
Executive Director of the Agency or his/her designee.
5. COMPENSATION.
The maximum compensation for all Consultant's services, including Consultant's costs, expenses
and travel time or travel expenses, shall not exceed Two Hundred Seventy-Six Thousand Seven
Hundred Dollars ($276,700). This amount includes Eight Thousand Five Hundred Dollars
($8,500) for the preparation and delivery of the Relocation Plan and the Replacement Housing
Plan; One Hundred Seventy-Six Thousand Four Hundred Dollars ($176,400) for Relocation
Services and Seventy-Six Thousand Three Hundred Dollars ($76,300) for Acquisition Services
that include eighteen (18) four-plexes (for a Consultant fee not to exceed $49,500), six (6)
improved commercial parcels (for a Consultant fee not to exceed $16,800) and four (4)
unimproved parcels (for a Consultant fee not to exceed $10,000). Interim property management
will be billed as follows: (i) one time set-up fee of $125 per parcel; and (ii) $100 per unit per
month for interim property management services. Demolition procurement and oversight will be
billed per hourly rate as listed on the attached fee schedule. During the term of this Agreement,
the Agency shall pay the Consultant on a monthly basis upon receipt of an itemized invoice from
the Consultant. Said compensation shall be considered full and complete reimbursement for all of
the Consultant's costs associated with the services provided hereunder. However, the total
compensation of this Agreement shall be adjusted downward should (i) the Agency not acquire
title to the properties referenced in this Agreement, or (ii) the Agency directly acquires any
property without the intervention of CPSI, or (iii) a lesser number of residents are required to be
relocated in accordance with the Consultant's Budget as referenced in the Consultant's Proposal
dated July 18, 2008. (For example: $2,450 per four-plex unit and $4,000 per business for
relocation expenses and $2,750 per four-plex, $2,800 for improved commercial parcels and $2,500
for unimproved parcel acquisitions).
6. USE OF FUNDS.
The funds paid to the Consultant shall be used solely for the purpose as set forth in this Agreement
and in accordance with the Scope of Services. The Consultant shall remain in compliance with all
state, federal and local laws prior to the receipt of any reimbursement hereunder.
7. NONDISCRIMINATION; MONITORING AND REPORTING WORK PERFORMANCE.
The Consultant shall not discriminate because of race, color, national origin, creed, religion, sex,
marital status, or physical handicap. At the request of the Interim Executive Director of the
Agency, or his/her designee, the Consultant shall provide reports, graphics, Of other work
products. Failure to provide such work products may prevent payment of the Consultant's
2
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requests for compensation, and may justify the temporary withholding as provided herein. The
Agency reserves the right to waive such breach, without prejudice to any other of its rights
hereunder, upon a finding by the Interim Executive Director of the Agency or his/her designee that
such failure was due to extraordinary circumstances and that such breach has been timely cured
without prejudice to the Agency.
8. CONFLICT OF INTEREST.
The Consultant shall maintain a code or standard of conduct. The Consultant shall neither solicit
nor accept gratuities, favors, or anything of monetary value for work completed under the Scope
of Services. To the extent permissible by state laws, rules and regulations, the standards adopted
by the Consultant shall provide for penalties, sanctions, or other disciplinary actions to be applied
for violations of such standards by the Consultant.
9. INDEPENDENT CONTRACTOR.
The Consultant shall perform each element of the work set forth in the Scope of Services as an
independent contractor and shall not be considered an employee of the Agency. This Agreement
is by and between the Consultant and the Agency, and is not intended, and shall not be construed
to create the relationship of agent, servant, employee, partnership, joint venture, or association,
between the Agency and the Consultant.
10. SUCCESSOR AND ASSIGNMENT.
The services as contained herein are to be rendered by the Consultant whose name is as appears
first above written and said Consultant shall not assign nor transfer any interest in this Agreement
without the prior written consent of the Agency.
11. INDEMNIFICATION.
The Consultant agrees to indemnify, defend and hold harmless the Agency and the City, their
agents, officers and employees from and against all liability, expense, including defense costs and
legal fees, and claims for damages of any nature whatsoever, including, but not limited to, bodily
injury, death, personal injury or property damage arising from or connected with the Consultant's
operations, or its services hereunder, including workers' compensation suit, liability or expense,
arising from or connected with the services performed by or on behalf of the Consultant pursuant
to this Agreement. The costs, salary, and expenses of the Agency's legal counsel in enforcing this
Agreement on behalf of the Agency shall be considered as "legal fees" for the purpose of this
Section.
12. INSURANCE.
The Consultant shall maintain insurance policies issued by an insurance company or
companies authorized to do business in the State of California and must maintain, during the
term of the policy, a "General Policyholder's Rating" of at least A(v), as set forth in the then
most current edition of "Best's Insurance Guide," as follows:
Automobile Insurance. The Consultant and each of its subcontractors shall maintain
comprehensive automobile liability insurance of not less than One Million Dollars ($1,000,000)
combined single limit per occurrence for all vehicles leased or owned by the Consultant or its
subcontractors and used in completing the work required under this Agreement.
3
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Comprehensive General Liability and Automobile Insurance. The Consultant shall maintain
comprehensive general liability and automobile liability insurance with a combined single limit of
not less than One Million Dollars ($1,000,000) per occurrence.
Worker's Compensation Insurance. The Consultant and each of its subcontractors shall maintain
worker's compensation coverage in accordance with California workers' compensation laws for all
workers under the Consultant's and/or subcontractor's employment performing work under this
Agreement.
Concurrent with the execution of this Agreement and prior to the commencement of any work by
the Consultant, the Consultant shall deliver to the Agency certificates evidencing the existence of
the insurance coverage required herein, which coverage shall remain in full force and effect
continuously throughout the term of this Agreement. Each policy of insurance that the Consultant
purchases in satisfaction of the insurance requirements of this Agreement shall name the Agency,
its officials, officers, employees, attorneys, representatives and agents as additional insured and
shall provide that the policy may not be cancelled, terminated or modified, except upon thirty (30)
days prior written notice to the Agency.
13. COMPLIANCE WITH LAWS.
The parties agree to be bound by applicable federal, state, and local laws, regulations and
directives as they pertain to the performance of this Agreement.
14. SEVERABILITY.
In the event that any provision herein contained is held to be invalid, void or illegal by any court
of competent jurisdiction, the same shall be deemed severable from the remainder of this
Agreement and shall in no way affect, impair, or invalidate any other provision contained herein.
If any such provision shall be deemed invalid due to its scope of breadth, such provision shall be
deemed valid to the extent of the scope or breadth permitted by law.
15. INTERPRETATION.
No provision of this Agreement is to be interpreted for or against either party because that party or
that party's legal representative drafted such provision, but this Agreement is to be construed as if
it were drafted by both parties hereto.
16. ENTIRE AGREEMENT.
This Agreement supersedes any and all other agreements, either oral or in writing, between the
parties hereto with respect to the retention of the Consultant by the Agency and contains all the
covenants and agreements between the parties with respect to such retention.
17. WAIVER.
No breach of any provision hereof can be waived unless in writing. Waiver of anyone (I) breach
of any provision shall not be deemed to be a waiver of any other breach of the same of any other
provision hereof.
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18. CONTRACT EVALUATION AND REVIEW.
The ongoing assessment and monitoring of this Agreement is the responsibility of the Interim
Executive Director of the Agency or his/her designee.
19. TERMINATION.
This Agreement may be terminated for the convenience of either party by giving written notice of
at least thirty (30) days.
20. NOTICE.
Notices herein shall be presented in person or by certified or registered United States mail, as
follows:
To Consultant:
California Property Specialists, Inc.
Attention: Kent Jorgensen
600 West Santa Ana Boulevard, Suite 115
Santa Ana, California 92701
Phone: (714) 550-4628
Fax: (714) 200-0809
To Agency:
Redevelopment Agency of the City of San Bernardino
Attention: Emil A. Marzullo, Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 9240 I
Phone: (909) 663-1044
Fax: (909) 663-2294
Nothing in this paragraph shall be construed to prevent the giving of notice by personal service.
21. BUSINESS REGISTRATION CERTIFICATE.
The Consultant warrants that it possesses, or shall obtain immediately after the execution and
delivery of this Agreement, and maintain during the period of time that this Agreement is in effect,
a business registration certificate pursuant to Title 5 of the City of San Bernardino Municipal
Code, together with any and all other licenses, permits, qualifications, insurance and approvals of
whatever nature that are legally required to be maintained by the Consultant to conduct its
business activities within the City.
22. ENTIRE AGREEMENT.
This Agreement, with Exhibit "A" constitutes the entire understanding and agreement of the
parties.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day
and year first written above.
AGENCY
Redevelopment Agency of the City of San
Bernardino, a public body, corporate and politic
Date:
Emil A. Marzullo, Interim Executive Director
Approved as to Form and Legal Content:
By: G~~
Agency s
CONSULTANT
California Property Specialists, Inc.,
a California corporation
Date:~' to. of)
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EXHIBIT" A"
Project and Scope of Services
Project Understanding
The Agency requires the services of an acquisition and relocation consultant to assist in the acquisition
and relocation task on eighteen (18) residential and ten (10) commercial parcels. The project has been
identified as the 5th and Meridian Project.
Project Management
Consultant's Project Manager will meet with Agency staff for a project "kick-off meeting" to review and
confirm the Agency's requirements for the requested services
Consultant will focus on the critical path schedule milestones and will also discuss the Agency's
requirements as to day-to-day coordination with staff and governing authorities. Discussions will include
progress reporting, deliverables, document preparation, and file format.
Upon Agency approval, Consultant will complete a detailed MS Project Timeline, draft Relocation Plan
and draft Replacement Housing Plan, all of which should be completed within 30 days after execution of
the Agreement.
ACQUISITION AND RELOCATION TASKS
As part of the preparation for the acquisition and relocation processes, staff of the Consultant will prepare
separate individual files for the acquisition and relocation functions. Typically, data such as the
preliminary title report, assessor's information, parcel maps and the offer letter are copied and placed in
both the acquisition and the relocation files for reference. The acquisition file will contain all
communications directly related to negotiations for purchasing that property; diaries of the contacts and
telephone conversations, other related documentation, releases, deeds and the final escrow package, with
a check-off list of items contained therein. The relocation file will typically contain copies of certain
acquisition data (offer letter, rent roll, leases) that have been obtained to perform relocation activities,
relocation diaries, Displacee Needs Questionnaires, market analysis data, moving criteria and schedules,
incidental expense calculation sheets, Decent, Safe & Sanitary Inspection forms, personal property
inventories, summary of benefits, letters of entitlement, the Agency's Appeal Procedure, claim forms and
other related data each completed relocation file would contain a Certification as the final document.
ACQUISITION TASKS
1. Request fee proposals from sub-consultants for each Work Order. Prepare Work Orders in
cooperation with Agency representative and submit to Agency for approval. Work Order should be
sufficient to cover all necessary and required tasks per contract and Scope of Work. All sub-
consultant's proposals should state a "Not to Exceed" cost, timeframes, work scope, and exemption
items.
2. With Agency approval/coordination, send necessary project notices. Assure that necessary
information is included in these notices (Title VI, Right to Accompany Appraiser). Introduction of
Consultant can be included in these notices as well.
3. Review title and appraisal reports, environmental assessments and other documents provided by the
Agency. Caution will be taken to observe errors in any of the supplied documentation, and to
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immediately report any situation which might cause further problems to the title companies,
appraisers and the Agency, if necessary, then take and/or recommend appropriate action as
required. Furthermore, all reports must meet requirements of funding source or the applicable
regulatory agency.
4. A specific review of the title report will be performed as soon as possible after receipt. Items such
as liens against the property, unpaid taxes, easements (outside of standard utilities), mortgages
(usually reflected in a Deed of Trust) and any mineral rights that have been transferred (especially
if such rights have surface entry rights). A title review form will be prepared to discuss these items
and the information discovered during the research.
5. Prepare individual acquisition files for the property owners. Files should contain: the title report,
the title review form, notices to owners, project information, legal and plats of the take area,
appraisal information, contact information, any other pertinent information.
6. Prepare offer packages based on Just Compensation values, following the Agency's format. Work
closely with the Agency representative in regard to time schedules. Packages must include all
necessary components per policies and procedures of Agency of funding source (i.e., Local, State
or Federal).
7. Set appointments to personally present offers whenever possible, unless an owner is out of state or
chooses otherwise. In those cases, the offers to purchase will be discussed on the telephone and
then sent via certified mail.
8. At least four (4) documented contacts, or ten (10) or more attempted contacts, with the owner will
be made, if necessary, to complete negotiations and to obtain the owner's signature of acceptance.
Acquisition staff will explain the appraisal, answer questions which can be answered readily, write
down concerns and questions which require further information. Staff will quantify possible
settlements with owners, but not commit to any arrangements without prior approval. The Agency
representative will be kept informed and authorize responses and/or settlements. All negotiations
will be conducted in compliance with Agency guidelines.
9. Diaries will be maintained in each file, recording all contacts, attempted contacts and discussions
with owners and other parties related to that particular transaction. Diary entries will be of
sufficient detail to inform the reader of all activities, concerns, questions and possible solutions.
10. All efforts will be made to reach settlements, or at least encourage a response or counter offer from
the property owner. Settlements will be based on Agency authority and must have proper
justification. The settlement or counter offer will be reviewed and researched by the Consultant. A
written recommendation will be sent to the Agency for review and approval/comment/rejection.
Sometimes, updated appraisal reports will be necessary to justify a settlement.
11. After an acceptance is received, copies shall be made for the file and signor, while the originals will
be sent with a transmittal to the Agency for approval and signature. When the originals are fully
executed, the agent shall pick them up and make two copies (one for the file, one for the seller).
The escrow officer shall be contacted and the originals shall be delivered with a transmittal and
proper escrow instructions.
12. Escrows will be opened as offers are accepted. Consultant will coordinate with escrow officer to
assure the required releases (mortgagors, lien holders, leasehold interests, spouse interests, etc.) are
obtained. Staff of the Consultant will prepare payment requests (based on estimated closing costs)
for the parcel to close escrow, coordinating with the Agency representative. After close of escrow,
a final closing statement will be issued by the escrow company. The Consultant will review it to
confirm that all monies were dispersed appropriately and that any refunds were returned to the
appropriate parties.
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13. Should the governing board of the EDA vote to file an action for the use of the power of eminent
domain, Consultant will work closely with legal counsel towards settlement. In the event of
condemnation or settlements, proper justification will be prepared, a condemnation report will be
requested, and Consultant will assist with supplying any additional data required by the Agency's
legal counsel. If necessary, Consultant will be prepared to act as witness.
14. Files shall be closed per Consultant standards, including all Agency required documentation.
15. Closed acquisition files will be copied, maintained, or delivered to the Agency for sponsor and
other audit purposes based on the scope of the contract.
RELOCATION TASKS
Replacement Housing Plan
Consultant will prepare a Replacement Housing Plan in accordance with Section 33413.5 of the
California Health and Safety Code for the Redevelopment Agency of the City of San Bernardino,
California. Section 33413.5 requires that, not less than thirty (30) days prior to the execution of an
agreement for acquisition of real property, or the execution of an agreement for disposition and
development of property, or the execution of an owner participation agreement, which agreement would
lead to the destruction or removal of dwelling units from the low- and moderate-income housing market,
the Agency shall adopt by resolution a replacement housing plan. Consultant will interview the Agency's
housing staff, compile figures for affordable housing starts and prepare a replacement housing plan that
meets the necessary requirements. At a minimum, the Replacement Housing Plan will include the
following components:
1. Description of the proposed project and project location;
2. The number of dwelling units housing persons and families of low or moderate income to be
removed and replaced by construction or rehabilitation;
3. The general location of housing to be rehabilitated developed or constructed pursuant to Section
33413;
4. An adequate means of financing such rehabilitation, development or construction;
5. The timetable for meeting the Replacement Housing Plan's relocation, rehabilitation, and
replacement housing objectives; and
6. A fmding that the replacement housing does not require the approval of the voters pursuant to
Article XXXIV of the California Constitution, or that such approval has been obtained.
Relocation Plan
Consultant will prepare a Relocation Plan, in accordance with all requirements of State Law, State HCD
Guidelines, the Relocation Assistance and Real Property Acquisition Rules and Regulations of the
Agency. The purpose of this Relocation Plan is to provide the Agency with sununary and statistical
information regarding the impact of a project to potential displacees. Specifically, this report should
concern the identification of potential impacts that may occur as a result of the demolition of existing
structures, proposed displacement of occupants, and a plan to mitigate respective impacts.
Consultant's relocation staff will personally inspect each impacted residential unit (or a representative
percentage thereof) and business operation in the project area to assess the potential needs for a
replacement location and relocation services. An investigation will be conducted through door-to-door
surveys of each potential displacee. Internet searches, review of classified advertisements and
communication with local real estate brokers will be used to determine the availability of lease and sale
listings in the immediate and surrounding areas. A comprehensive report will be prepared and distributed
as directed by the City. At a minimum, the Relocation Plan will include:
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1. Description of the proposed project and project location;
2. Assessment of needs;
3. Replacement housing resources;
4. Residential and commercial displacements;
5. Temporary housing (if applicable);
6. Program assurances and standards;
7. Relocation assistance program;
8. Citizen participation and plan review period;
9. Description of relocation benefits;
10. Eviction policies and procedures;
II. Appeals and grievance procedures;
12. Displacement schedule;
13. Estimated relocation costs.
RESIDENTIAL RELOCATION
I. Begin relocation assistance within a reasonable time after the first offer has been made.
2. Determine whether displacee has potential eligibility for replacement housing allowance by
verifying displacee's time in residence. Meet with the displacee in person. Complete Displacee
Needs Questionnaire, present relocation brochure and business card. Explain the entire relocation
program as it applies to residential occupants.
3. Explanation includes, determination of RAP entitlement, moving options, eligible expenses, criteria
for replacement housing, decent, safe and sanitary standards, time of payments, 90-day letter,
possibility of continuation of current residence beyond ninety (90) days and appeal procedures.
4. Determine family composition, income, and special problems. Identify in detail the displacee's
needs, desires, and problems related to the move. If an interpreter is needed, have them involved in
all aspects of program and have notices translated into appropriate language.
5. Extract from the appraisal report pertinent data to be utilized as a basis for determining what will
constitute comparable housing.
6. Present alternatives and solutions for areas of concern which are readily resolvable. Write down
questions and concerns to discuss with the Agency representative.
7. Schedule subsequent appointments with displacee to respond to all issues and provide assistance.
8. Collect rental/listing information from the Multiple Listing Service, Internet, Realtors, classified
newspaper ads, and field search and analyze it for decent, safe and sanitary comparable dwellings
for single family and multi-family homes. This information will be continually updated throughout
the project to assist the displacees.
9. Gather information regarding utility costs of comparable dwellings and the displacement dwelling
by contacting customer service representatives of utility companies and/or reviewing owners'
average utility expenses. Consultant will determine whether a utility schedule has already been
published. Field review and take pictures of the potential replacement dwellings and select the most
comparable by evaluating the properties and the written documentation.
10. Calculate probable entitlement and prepare the RAP Entitlement Letter and other necessary
paperwork. Submit to Agency representative for approval. Upon approval, contact displacee to
advise that determination is completed, and set an appointment to deliver entitlement letter.
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II. Present the entitlement letter in person. Discuss benefits, moving options and discuss displacee's
needs again. Provide referrals.
12. After the entitlement letter is prepared, prepare a 90-day Notice to Vacate (can be hand delivered
with RAP Entitlement or sent via certified mail). If mailed, make sure to provide sufficient time for
mail delivery.
13. Summarize all interviews and telephone conversations, contacts and attempted contacts in a diary
for official record.
14. Proceed with problem resolution as required. Define the problem; generate possible solutions;
discuss with the Agency representative; select appropriate resources for solutions, extract and
evaluate relevant information from those resources, select most appropriate solution, explain
solution to displacee and others, as necessary, and counsel the displacee to follow a logical course
of action.
15. If necessary, take displacee to inspect comparable replacement dwelling or to view other available
properties.
16. Determine and inform displacee of the monetary effect of the selection of the replacement
dwelling.
17. Conduct decent, safe and sanitary inspection of replacement dwelling.
18. Gather and evaluate supporting data for calculation of replacement housing payment, increased
mortgage, incidental expenses, and moving benefit, as appropriate.
19. Provide guidance to the displacee in the selection of a moving option. Review in detail the moving
options, i.e., commercial mover, actual expense option, or a move based upon the fixed rate
schedule. Discuss the ramifications and complexities of each option with the individual so that an
informed decision can be made.
20. If a commercial move is selected, obtain estimates from movers and prepare a contract. In
conjunction with the mover, plan the move as dictated by circumstances. Oversee and monitor the
move to assure only eligible personal items are moved and that the move is accomplished in a
timely manner.
21. If a self-move is selected, monitor to avoid potential problems.
22. Collect supporting documents and submit payments for replacement housing and moving expenses.
Coordinate with the Agency regarding obtaining funds/checks and inform Agency of various
situations.
23. Arrange for final walk -through inspection of the property to ensure that all personal property has
been removed from the acquired property and to obtain the keys. Turn keys over to the Agency for
property management function. Notify the Agency of vacated premises for security purposes. If
Agency allows, and items are to be left behind, require displacee to sign an abandonment of
personal property prior to final payment of moving expenses.
24. Prepare final claims, complete diaries, prepare certification and close file.
25. Closed files will be copied and maintained by Consultant with an additional copy delivered to the
Agency for record keeping and other audit purposes.
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BUSINESS, FARM AND NON-PROFIT ORGANIZATION
I. Meet with owners of businesses within a reasonable time after the offer to purchase has been made
and interview them to complete the Displacees Needs Questionnaire. Collect data regarding the
type of business, work schedule, number of employees and the owner's proposed plans. Provide
advisory assistance.
2. Determine potential eligibility for moving payments by reviewing eligibility criteria and case data.
3. Personally contact the displacees and present letter of possible entitlements, relocation brochure
and business card. Explain in detail the options for payment of reasonable moving expenses:
commercial mover paid by the Agency, lower of two bids; Agency's Determination of Value not to
exceed $2,500.00; or actual reasonable moving expense.
4. Extract from appraisal report information regarding improvements that have been acquired so as to
eliminate them from consideration in determining moving expenses. Determine if a machinery and
equipment evaluation appraisal is necessary and advise Agency. If needed, request that Agency
retain specialty appraiser.
5. Review and approve the compilation of a certified personal property inventory.
6. Interview the displacee again to identify in detail displacee's needs, desires and issues. Work with
displacee and Agency representative on solving identified problems.
7. Summarize all interviews, contacts and contact attempts in diary for official record.
8. Provide assistance in locating a suitable replacement site by talking with real estate agents, county
or city officials, federal and state agencies for environmental and planning and zoning
considerations, private or government sponsored lenders for financial backing as necessary. Verify
all data and assure of proper zoning. If a Conditional Use Permit may be required, check with
proper department to confirm necessary time frame for process and probability of approval.
Preview property and take photo, provide to displacee and place in file.
9. If Commercial Move is selected, obtain at least 2 acceptable moving estimates based upon the
inventory and physical inspection of the property. Compare the bids and assess whether the
difference between them warrants soliciting a third estimate. Select the low bid amount and advise
the displacee in writing of the amount of compensation to be paid for the move. Owner may select
whomever he wishes to perform the move; Agency will only pay up to the amount of the low bid.
Sometimes additional, specialized movers/technicians will need to be utilized to assure all aspects
of a move have been considered (e.g., specialty movers, waste disposal, tow companies,
electricians, computer network companies, F&E dismantlers, etc.).
10. If Self Move is selected, a moving plan should be prepared. The plan should be as simple or as
complex as necessary to assure actual costs are incurred and reasonable. A self-move should not
cost more than the low commercial bid.
I I. Monitor the move as much as feasible to determine that all items are moved that should be moved,
and that no items are moved that were purchased during the acquisition of the property.
12. Collect supporting documents and submit payment of moving expenses. Coordinate with the
Agency's representative with regard to invoices, review and timing of payments. All payments are
subject to state or federal audits.
13. Determine what expenses (i.e., improvements to the property, advertisement and increased
operating costs) are necessary and eligible as reestablishment expenses, not to exceed $10,000.00.
Inspect the replacement property, obtain cost estimates, discuss the issues with the displacee, verify
previous two years expenses and income and project next two (2) years to assess whether increased
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operating costs will exist. Based upon decisions of displacee and program guidelines, determine
eligibility for reimbursement. Advise displacee of documentation required to support claim.
14. If displacee decides not to relocate some personal property, verify that a bona fide attempt has been
made to sell the item(s). Determine eligibility for direct loss payment and compute amount of
payment.
15. Determine eligibility for actual reasonable search expenses for up to $1,000 (California State),
$2,500 (Federal). Collect appropriate documentation to support any claim submitted.
16. Determine eligibility for In-Lieu business payment, not less than $1,000.00 and not more than
$20,000.00, utilizing IRS tax returns and/or certified financial statements. A different criteria will
be used for non-profit businesses.
17. If Business Good-Will becomes an issue, an appraisal, or letter of exposure stating a possible range
of good-will values for a particular type of business may be required. This report or valuation may
be used to settle any compensation owed the company not covered by other relocation payments. A
good-will payment must be accompanied by an agreement wherein the business owner waives all
other claims to future good-will.
18. Arrange for a final walk -through inspection of the property to ensure that all personal property has
been removed from the acquired property, and to obtain the keys. If Agency allows, and items are
to be left behind, require displacee to sign an abandonment of personal property prior to final
payment of moving expenses. Turn keys over to the Agency and notify of vacated premises for
security purposes. If requested, contact the appropriate utility, garbage and cable companies for
disconnect and removal.
19. Collect final supporting documentation, prepare final claim, prepare certification and close file.
20. Closed files will be copied, maintained, or delivered to the Agency for sponsor and other audit
purposes based on the scope ofthe contract.
INTERIM PROPERTY MANAGEMENT TASKS
Property Management Coordination - Provide supervlSlon, coordination and management of
contractors who provide the various property management functions required for the project (particularly
washing machine/dryer rental and services).
Property Management Liaison - Provide liaison services for the Agency for the handling of all concerns
complaints and/or problems regarding any property management issues.
Utility Coordination - Confirm with utility companies transfer of necessary accounts to the Agency or
their designee. Agency will handle the transfer of the water, trash and sewer accounts. Consultant to
handle the appropriate transfer of gas and electricity.
Invoice Services- Provide services for the review and approval of all invoices submitted by each property
management sub-consultant. Submit sub-consultants invoices to the Agency for their approval and
processing for payment.
Security Services - Coordinate information with Agency staff and Police Department representative as
necessary. If required, contract with a sub-consultant to provide nighttime security for the project area.
The cost of any security service will be a pass through expense to the Agency.
Lawn Care - Only to prevent the property from becoming a nuisance. Contract with a company to
provide limited and necessary lawn maintenance. The contractor expense will be a pass through expense
to the Agency.
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Maintenance Services - Contract with a company to provide maintenance services for the project
referenced above. Consultant to order and coordinate any repairs regarding health and safety issues. The
contractor expense will be a pass through expense to the Agency (e.g., routine clean-up, heating repairs,
plumbing, electrical problems, rodent issues, etc.).
Month-to-Month Occupancy Agreements - Prepare and obtain signatures on Month-to-Month
Occupancy Agreements, as needed.
Collect Rent - Collect monthly rent payments, deliver to Agency. Provide Agency a monthly ledger for
payments received and expenses.
Rent to Hold Vacant Agreements - Prepare and obtain signatures on documentation required for Rent to
Hold Vacant agreements, as needed.
Vacancy of Unit - Consultant to complete an exit inspection and complete a Certificate of Abandonment.
Consultant will pick up the units keys, with a copy retained by the Consultant and a copy forwarded to the
Agency.
Fencing Services - Coordinate the fencing of acquired properties. If necessary, Consultant will provide
emergency fencing repair services for the project referenced above. The contractor expense will be a pass
through expense to the Agency.
Securing Property - As necessary, Consultant will contract with a sub-consultant to secure the property.
Eviction Coordination - Coordinate with Agency, legal counsel and legal messenger service companies
to provide necessary services to process evictions.
Demolition Coordination - This includes utility disconnections, meter removal, asbestos and lead
testing, and coordination and oversight of demolition contractors. All demolition contractors will be
selected based on the lowest responsible bid from no less than three (3) responses. The Consultant will
ensure the payment of prevailing wages for these services and will give Agency staff the opportunity to
review all procurement procedures and make final selection on the recommended demolition contractor(s)
provided that all demolition work being contracted at one time does not exceed $25,000. Prior to the
release of any funds to pay any invoices, Consultant will provide proof that said demolition services were
successfully rendered. Contracts for demolition in excess of $25,000 will need to be approved by the
governing board of the Agency and will be executed by the Agency.
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Acquisition/Relocation Budget Parameter
5th and Meridian Proiect
Acauisition Services Provided Number or Cases Fee Total
Residential occuoied Eilffiteen (18) four-olex units $2,750 $49,500
Improved commercial oarcels Six (6) imoroved commercial parcels $2,800 $16,800
Vacant commercial land Four (4) unimnroved oarcels $2,500 $10,000
Total Acquisition Services $76,300
Relocation Services
RelocationlReolacement Housing Plan 78 Interviews, research, write plan Flat Fee $8,500
Residential occuoied households Seventv-twonZ) disolacements $2,450 $176,400
Business displacements Six (6) mid-level relocations $4,000 $24,000
Total Relocation Services 208,900
Proiect Total 285,200
Proiect Discount - $8,500
Total $276,700
Interim Property Management Budget Parameters
Rent Collections
One time set-un fee 'i: 125 ner narcel (includes software enrollment feel
Rent Collection 'i: I 00 ner unit ~r month
Pronertv Maintenance
Property maintenance tasks will be billed at the hourly rates below. Escrow account to be set UP to collect
all rents and pay all property maintenance expenses as aporoved by the Agency. Expenses includes items
like nlumbers electricians and c1ean-uo crews.
Demolition Oversight Budget Parameters
Consultant will provide oversight of all demolition activities, including the applicable environmental
testing. Fees will be based on the hourly rate at the schedule listed below.
Consultant will invoice the City of San Bernardino Economic Development Agency (Agency) each month
for work actually performed.
Schedule of Professional Fees
2008 Hourly Fee Structure
Broker/Senior Project Manager
$100.00 per hour
Right of Way Technician
$ 95.00 per hour
$ 90.00 per hour
$ 85.00 per hour
$ 60.00 per hour
$ 45.00 per hour
Project Manager
Senior Acquisition/Relocation Agent
Acquisition/Relocation Agent
Administrative Support
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City of San Bernardino
ECONOMIC DEVELOPMENT AGENCY
Redevelopment. Economic Development. Housing & Community Development
'"
October 15, 2008
California Property Specialists, Inc. (CPSI)
Attention: Georgia Marquis
600 West Santa Ana Boulevard, Suite 115
Santa Ana, CA 92701
Re: California Property Specialists, Inc., Professional Services Agreement for Acquisition,
Relocation and Replacement Housing Plan Preparation, Property Management and
Demolition Procurement Services
Dear Ms. Marquis:
Enclosed for your records is a fully executed Agreement as referenced above that was approved by
the Community Development Commission of the City of San Bernardino on October 6, 2008
(Resolution CDC/2008-38).
Should you have any questions regarding this matter, please feel free to call me at (909) 663-1044.
Sincerely,
,'/'M
VT! <--
Lorrame B. Wyche
Secretary
Enclosure:
California Property Specialists, Inc., Professional Services Agreement for
Acquisition, Relocation and Replacement Housing Plan Preparation, Property
Management and Demolition Procurement Services
cc: Colin Strange, Project Manager (with Copy of Executed Agreement)
~argaret Fedor, City Clerk's Office (with Original Executed Agreement)
Barbara Lindseth (with Original Executed Agreement)
Wasana Chantha, Executive Secretary
File
P:\Clerical Services Dept\Lorraine\Letters\2008\lO-15-08 CPSI Executed Agrml. (Professional Services Agreement).doc
201 North E Street. Suite 301. San Bernardino. California 92401-1507. (909) 663-1044. Fax (909) 888-9413
www.sanbernardino~eda.or!J