HomeMy WebLinkAbout11- Water Department CITY' OP SAN BERNARDINO REQUEST FOR COUNCIL ACTION
From: Bernard C. Kersey Subject: Resolution approving a Memorandum
General Manager of Understanding between the Water
Dept: Water Department Dept. and City of San Bernardino
Date: November 4 , 1996
ORIGINA1 Parks , Recreation and Community
Services Department
Synopsis of Previous Council action:
NONE
Recommended motion:
ADOPT RESOLUTION
Sig 'ture
Contact person: Marjorie A. Hoverland Phone: 384-5393
Supporting data attached: Yes Ward: 2
FUNDING REQUIREMENTS: Amount:
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
Res 96- %� 5
l0 a
75-0262 Agenda Item No. /
QIT-f- OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
The City of San Bernardino Parks, Recreation & Community Services
Department (City) recently negotiated the sale of approximately 50
acres of property located in the Arden Guthrie area to the
California Youth Soccer Organization (CYSO) . Located on the
property is the Community Gardens Project. The Water Department
was approached to see if they had an available site to relocate the
Gardens Project. Staff evaluated and recommended to the Board of
Water Commissioners that the City be allowed to utilize property at
6th and Pedley.
On October 1, 1996 the Board of Water Commissioners unanimously
voted to approved a Memorandum of Understanding with the City to
lease approximately ten acres of land for the purpose of the
relocation of the Community Gardens Project.
i
1 MEMORANDUM OF UNDERSTANDING
2
3 THIS MEMORANDUM OF UNDERSTANDING is made and entered into this
4 day of , 1996 between the CITY OF SAN
5 BERNARDINO MUNICIPAL WATER DEPARTMENT, by and through the BOARD OF
6 WATER COMMISSIONERS, hereinafter called "DEPARTMENT", and the CITY
7 OF SAN BERNARDINO PARKS, RECREATION & COMMUNITY SERVICES
8 DEPARTMENT, hereinafter called "CITY."
9 W I T N E S S E T H
10 WHEREAS, Department is the owner of the property located at
11 6th and Pedley Street, San Bernardino, California; and
12 WHEREAS, City desires to utilize a portion of the property
13 hereinabove mentioned to develop and operate a Community Gardens
14 Project, hereinafter called "Project."
.5 NOW THEREFORE, the parties hereto, in consideration of the
16 terms, covenants and conditions herein contained, agree as follows:
17 1. PROPERTY: Department hereby agrees that the City may use
18 the property adjacent to the easterly boundary of the property
19 currently leased to Santa Claus, Incorporated, and extending east
20 150' to a depth of 3251 , being a portion of Lots 4 and 5, Block 4,
21 Rancho San Bernardino, as per plat thereof recorded in Book 7 of
22 Maps, Page 2 , Records of the County Recorder of San Bernardino
23 County, described as follows:
24 Beginning at the Southwest corner of the East ten
acres of Lot 5; thence Easterly, parallel to the
25 Southerly line of said Lot 5, 656.56 feet to the
true point of beginning; thence continuing Easterly
26 along said southerly line of Lot 5, 271. 58 feet;
thence, leaving said southerly line of Lot 5 at
-)7 right angles, northerly to a line that is 877.74
feet Northerly and parallel to said Southerly line;
a8 thence Westerly, parallel to said Southerly line,
1
i
1 70. 00 feet; thence Northerly perpendicular to said
Southerly line 100. 00 feet to a point on a line
2 parallel to and 977.74 feet Northerly of said
Southerly line; thence Westerly, parallel to said
3 Southerly line, 475.84 feet; thence Southerly,
perpendicular to said Southerly line, 649.58 feet;
4 thence Easterly, parallel to said Southerly line,
130. 07 feet; thence Southerly, perpendicular to
5 said Southerly line, 4 .48 feet; thence Easterly,
parallel to said Southerly line, 144 . 19 feet;
6 thence Southerly, perpendicular to said Southerly
line, 323 . 68 feet, more or less to the true point
7 of beginning. Area of said parcel is 10. 04 acres.
8 2 . RIGHT TO USE: Department makes no representation or
9 warranties of any kind or nature as to the size, location, or time
10 of construction of any of the structures (other than the Premises)
11 shown on Exhibit A. Department hereby reserves the right at any
12 time, and from time to time, to make alterations or additions to
13 the Premises, to build additional facilities or structures on the
14 subject property, and to install, maintain, use, repair and
�5 replace, pipes, ducts, conduits and wires, leading through, under
16 or over the Premises. Department reserves the right to place
17 additional wells on the subject property if the Department deems it
18 as necessary.
19 3. CARE OF PREMISES: City shall not perform any acts or
20 carry on any practices which may damage or contaminate the Premises
21 or be a nuisance or menace to others, and shall keep the Premises
22 under its control, free and clean from rubbish at all times, and
23 shall remove all trash and garbage within the Premises and arrange
24 for the regular pick-up and cartage of such trash and garbage at
25 City's expense.
26 4 . TEEM: The term of this Memorandum of Understanding shall
17 be for a period of twenty-five (25) years, beginning October 1,
z8 1996 and ending September 30, 2021.
2
1 5. BASE RENTAL: City agrees to pay Department the annual
2 rental payment in the amount of $1. 00, with the total term payment
3 payable in advance.
4 6. PURPOSE: City agrees that the property will be used for
5 the purpose of developing and operating Project.
6 7 . PROPERTY MAINTENANCE: City agrees to erect and maintain
7 a suitable fence to be approved by Department, on the east and
8 north sides of the subject property. Department agrees to install
9 and maintain a 3" water meter service at no cost to the City. City
10 agrees to install and maintain a 3" double check backflow device at
11 no cost to the Department. All other site preparations and
12 improvements will be approved by the Department, and all such
13 improvements are at the sole expense of the City. Any and all
14 grading, earthwork and other requirements shall be set by the City
15 of San Bernardino and completed by City at City's sole expense.
16 City will maintain and operate all facilities on the property
17 during the term of the Memorandum of Understanding.
18 8. SUBLETTING: The rights of the City hereunder may not be
19 assigned or sublet to any other person, firm or corporation, except
20 for the express purpose of its intended use.
21 9. LIABILITY & INSURANCE: City shall hold Department
22 harmless from any liability and City shall name Department as an
23 additional insured in all of its liability policies. The minimum
24 liability insurance coverage of $500,000 combined single limits and
25 ten days notice of cancellation are required. Certificates of all
26 such insurance shall be filed with the Department. The Department
27 understands and accepts that the City is self-insured.
Z8
3
i
1 10. OPTION TO RENEW: City is hereby granted an option to
2 renew this Memorandum of Understanding for an additional period of
3 twenty-five (25) years from and after the expiration of the
4 original terms of the same rental and upon the same terms and
5 conditions as herein contained. Written notice of City's intention
6 to renew this Memorandum of Understanding shall be given to
7 Department at least thirty (30) days prior to expiration of this
8 Memorandum of Understanding.
9 IN WITNESS WHEREOF, the parties hereto have executed this
10 Memorandum of Understanding on the day and year first hereinabove
11 mentioned.
12 CITY OF SAN BERNARDINO CITY OF SAN BERNARDINO
BOARD OF WATER COMMISSIONERS
13
14
15 By: By:
Harold W. Willis Tom Minor
16 President Mayor
17
18 By:
Marjorie A. Hoverland
19 Secretary
20
21
22 (SEAL) (SEAL)
23
24
25
26
17
28
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I CITY OF SAN BERNARDINO
RIALTO AVENUE MUNICIPAL WATER DEPARTMENT
PROPERTY LOCATION PLAT
VICINITY MAP FOR THE COMMUNITY GARDENS
MEMORANDUM OF UNDERSTANDING
6TH STREET AND PEDLEY STREET
Fie Locotlon HDTDOG D\l DATA\AUTDCAD\ESHTS\ANTIC-GAR.DVG
IEXHIBIT A
Alternative as Proposed by Ramona Senior Housing, Inc., as to installment distributions of
Tax Credit Funds under the Ramona Senior Housing Tax Credit Partnership Agreement
(10/18/96 -4:40PM)
The second full paragraph on Page 2 of the Agency Staff report to the Commission should be
amended to read as follows:
Outside consultants to the Company and the tax credit investors have estimated that
additional monetary costs should range from $2,000 to $5,000 annually for tax credit
compliance matters in addition to approximately $8,000 per year for earthquake insurance
as is required by the tax credit investors to be obtained by the Company. In the event the
Company is unable to pay all the expenses of operation of the Project and the debt service
on the 1995 Bonds, the Agency has agreed under the Standby Loan Agreement to pay the
shortfall amount representing the debt service on the 1995 Bonds. Thus, the Company
would first seek to obtain other available funds from the Company and Casa Ramona to
pay such costs for the next ten(10) years (the term of the tax credit investment), as well
as provide funds for certain other expenses of the Company related to the Project. The
Company proposes that Casa Ramona would repay in full two (2) loans that were
previously made by the Agency from CDBG funds: the first was made in 1981 for the
refurbishing of the Casa Ramona building in an original loan amount of$120,599 of
which $42,741 currently remains outstanding, and the second loan was funded in 1982
for the construction of the Medical Clinic located adjacent to the Casa Ramona main
facility with an original loan amount of$200,000 of which $24,444 is the remaining
principal balance. The current combined principal balances of the two (2) loans to Casa
Ramona are approximately $67,185 with combined monthly payments of$1,819.00 for
the next five (5) years.
The Company will make every attempt to obtain other available funds from any other
assets of the Company and seek financial assistance from Casa Ramona during the term
of the Tax Credit Partnership Agreement to pay the necessary operating costs related to
the Project. Although Staff has had experience with the prior and current commitments
of Casa Ramona as to the continued efforts of Casa Ramona on this Project, it is not
intended to commit or require Casa Ramona to pay any of the operating costs or debt
service amounts through the presently proposed agreement between the Company and the
Agency.
Entered into Record at
CouncillCmyDevCms Mtg:
rE' Ai',- ',i 11HOi / l
Page 1 of 3
City ClerkICDC Secy
City of San Bernardino
The Company proposes that the tax credit funding be distributed as follows:
Total Tax Credit Sales Proceeds $575,000
Tax Credit Sales Expenses - 117.000'
Net Tax Credit Contribution(available funds) $458,000
State of Calif.,TCAC monitoring fee - 18,040
Net Available for distribution $439,960
Pursuant to the Tax Credit Partnership Agreement, three (3) installment payments will be
disbursed representing the present value of the tax credits. The following is the proposed
disposition of the funds available upon the disbursement of each installment:
Total Disbursement to RSH EDA Ramona Senior
I. $287,500 $150,000 $137,500 (less
$117,000 to be paid
by RSH for the
payment of financing
costs)(less $18,040 to
TCAC State of Calif.)
$2,460 net to RSH
11. $172,500 $130,000 $42,500 ($22,500
from RSH to Casa
Ramona paid to EDA
for partial payment of
CDBG loan)
$20,000 net to RSH
III. $115,000 $ 70,000 $45,000 ($44,685
from RSH to Casa
Ramona to EDA for
final payment of
CDBG loan)
$315 net to RSH
'This is an estimated amount based upon agreements of RSH with various professional
service providers, including due diligence,title insurance, consultants, accounting and tax
counsel; the actual amounts paid will be based upon invoices received and verified by RSH
which may be more or less than this estimated amount.
Page 2 of 3
Total $575,000 $350,000 $225,000
+ 67.185 - 117,000
$417,185 - 18,040
- 67.185
$ 22,775
PROPOSED SUBSTITUTE COMMISSION MOTION:
That the Community Development Commission approve the attached Resolution together with
the changes as set forth in the alternate funding proposal as submitted by Ramona Senior
Housing, Inc., and authorize the preparation and execution of all necessary documents by the
Chairman and Secretary to implement the distribution of tax credit funds in the manner as
approved.
Page 3 of 3
RAMONA SENIOR COMPLEX, INC.
C/O 1524 W. 7TH STREET
SAN BERNARDINO, CALIF. 92411
(909) 889-0011
Memo: To Tim Sabo
From: Esther Estrada, Ramona Senior Complex
Date October 18, 1996
Re: Recommended Changes to FOR staff report for 10-21-96
-�m=O�=.cC..�xxc�=cxc=�ee�C�ecc�cca��e:csSCCexcm A�C9 .
line number 8
While the language is not committing Casa Ramona to anything* I
suggest the following language:
" "Throughout the course of the partnership, the Company will.
make every attempt to obtain other auailable funds from the
Company, and solicit assistance from Casa Ramona to pay. o#her
costs relating to the project. ""'
Although we know from experience that Casa Ramona is and will
continue to be committed to this project, We cannot commit
Casa Ramona to pay for antsthing through this agreement.. Thi11s
an agreement between Ramona Senior and The EDR.
line number 11
" "The Company understands that Casa Ramona, Inc. will be
repaying in full, the following:
1.) R $280,008. CDBG loan that was made in 1982. Casa Ramona
has been paying on this loan for 14 years, is currant, and has a
balance of $ 24,444.
2.) R $128,599. loan made in 1981 for the refurbishing of the
! Casa Ramona building. The account is currant, and has a balance
of $42,741 .
The currant combined principal balances of the two loans to
Casa
Ramona are $67,184. with combined monthly payments of
I� $1819.00
for the next five(5) years.""
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Upon further reulew of the partnership aqreement ; .
would appear as though the third installment on the sale of,the
credits would not come for some time. It is for this reesen
that I propose the following:
On the first installment of 4287,588. The city gets
4158,888. Ramona Senior CompleH receiues $137,588. RSC
pays the costs of up to $ 117,0130. and retains $28,588. for
other purposes. Ramona Senior will require proof of costs
before issuing checks to the parties inuolued.
On the second installment of J1.72,506, 'the city gets
-.138,860'. and Ramona senior gets $42,588. for other
purposes.
On the Third installment of $115.888. the City gets
$78,808.88 and Ramona Senior gets $45,888. for other
purposes.
Gluen the proposed schedule for payment by the
inuestors, I think this is the only fair way for both RSC
(Ramona Senior Complex, 1 and the City to benefit.
INITIRL DISBURSEMENT TO RSH EDR RSC
1 . $287.500 $125,000. $162,500.
2. $172,500. $115,000. $ 57,500
3. $115,000. $110,000. $ 5,000.
$350,000. $225,000.
OUT OF THE $225,000. RRMONR SENIOR WILL BE GETTING, IT WILL
PRY THE COSTS FOR THE SRL€ OF THE CREDITS $117,000.
IT WILL PRY THE STRTE THE MONITORING FEE 18,040
IT WILL PRY CRSR RRMONR $81,960 RN^u CRSR
RRMONR WILL PRY ROR 67,185.
PLUS CRSR RRMONR W I LL PRY ON TH I RD OUTSIDE
LORN OF $35,000. $22,7 75.
BRLRNCE OF MONEY TO RRMONR SENIOR COM°LEH 020
Entered into Record at
Council ICmyDeyCms Mt .
by
re Agenda Item
—J�:r�Cccz�--
611, 1
City ut 5a11 tsernardino
f
The Company proposes that the tax credit funding be distributed as follows:
Total Tax Credit Sales Proceeds $575,000
Tax Credit Sales Expenses - 117.000'
Net Tax Credit Contribution(available funds) $458,000
State of Cali£,TCAC monitoring fee - 18,040
Net Available for distribution $4399960
Pursuant to the Tax Credit Partnership Agreement, three (3) installment payments will be
disbursed representing the present value of the tax credits. The following is the proposed
disposition of the funds available upon the disbursement of each installment:
Total Disbursement to RSH EDA Ramona Senior
I. $287,500 $125,000 ,500 (less
$117,000 to be paid
by RSH for the
payment of financing
costs)(less $18,040 to
TCAC State of
Cali£)(less$22,500;
"from RSH to Casa
Ramona paid to EDA
€ r partial'pay
me men j
CDBG loan)
$4,960 net to V SH
11. $172,500 $ 5,000 $57,500 ($44,685
from RSH to Casa
Ramona paid to EDA
for final payment of
CDBG loan)
$12,815 net to RSH
III. $115,000 $5;;000`$et to RSH
'This is an estimated amount based upon agreements of RSH with various professional
service providers, including due diligence,title insurance, consultants, accounting and tax
counsel; the actual amounts paid will be based upon invoices received and verified by RSH
which may be more or less than this estimated amount.
Page 2 of 3