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HomeMy WebLinkAbout2010-10-13 e-packet~o~ NF9 ~r~ sA ACJEND~A o~ ~ _~: qt REDEVELOPMENT AGENCY U ~ O .r,..~.:._:~ CITY OF SOUTH SAN F]3ANCISCO ~ALIFOR~~~ REGULAR MEF,TING MUNICIl'AL SERVICES BUILDING COMMUNITY ROOM WEDNESDAY, OCTOBER 13, 2010 6:30 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Agency business, we proceed as follows: The regular meeting of the Redevelopment Agency is held on t:he second Wednesday of each month at 6:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Community Room and submit it to the Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents Redevelopment Agency from taking a.ct~ion on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The Clerk will read successively the items of business appearin;; on the Agenda. As she completes reading an item, it will be ready for Board action. MARK N. ADDIEGO Chair KEVIN MULLIN Vice Chair PEDRO GONZALEZ Boardmember RICHARD A. GARBARINO Boardmember RICHARD BATTAGLIA Investment Officer BARRY M. NAGEL Executive Director KARYL MATSUMOTO Boardmember KRISTA MARTINELLI-CARSON Clerk STEVEN T. MATTAS Counsel PLEASE SILENCE CELL PHONES AND PAGERS l TEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS /n accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the City Clerk's Office located at City Hall. If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writirag will be made available to the public at the location of the meeting, as listed on this agenda. The address of City Hall is 400 Grand Avenue, South San Francisco, California 94080. CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR Motion to approve the minutes of September 8, 2010. 2. Motion to approve expense claims of October 13, 2010. ADMINISTRATIVE BUSINESS Resolution authorizing the expenditure of tax increment funds for the rehabilitation of 339 Commercial Avenue, adopting findings required b:y Health and Safety Code Section 33445, and authorizing award of a contract for the project to HARGENS, INC in an amount not to exceed $85,503.45. ADJOURNMENT xr.~ui,ax KEllEVELOPMENT AGENCY MEETING OCTOBER 13, 2010 AGENDA PAGE 2 1Wti h l1L` 1 ~1 LH 1 . L' 1Vl ~F 1 ~SOVTK SANFy 9L o - ti ~- U O ,~,_> c'ILIFOR~~P MINUSES ~~` REGULAR ME]E7CING REDEVELOPMENT AGENCY CITY OF SOUTH SAN F:~2ANCISCO MUNICII'AL SERVICES BUILDING COMMUNITY ROOM WEDNESDAY, SEPTEMBER 8, 2010 CALLED TO ORDER: ROLL CALL: AGENDA REVIEW None. PUBLIC COMMENTS None. CONSENT CALENDAR 6:30 p.m.. Present: Boardmembers Garbarino, Gonzalez and Matsumoto, Vice Chairman Mullin and Chairman Addiego. Absent: None. 1. Motion to approve the minutes of August 11, 2010. 2. Motion to approve expense claims of September 8, 2010. 3. Resolution No. 15-2010 authorizing preparation of Proposed Redevelopment Plan Amendments to combine debt limits for the Downtowrr/(:entral Added Area and Merged Project Areas, refine methodology used to calc;ul~ate revenue included in tax increment collection limit, and extend time limit to incur debt for Downtown/Central Added Area and El Camino Corridor Added Area. 4. Resolution No. 16-2010 authorizing the Executive Director to execute an Agreement for Consulting Services with Seifel Consulting, Inc. in an amount not to exceed $297,800 for the preparation of proposed Redevelopment Plan Amendments. 5. Resolution No. 17-2010 authorizing the expenditure ol~ta~x increment funds for the 356 Grand Avenue Abatement and Building Demolition :Project, adopting findings required by Health and Safety Code Section 33445, anti authorizing award of contract for the Project to Silverado Contractors, Inc., in an amount not to exceed $94,700. 6. Resolution No. 18-2010 approving an amendment to the consulting services agreement with Brookwood Group for development management services for 418 Linden Avenue to increase the agreement amount by $150,000 to include the costs of engineering, environmental and marketing sub-consultants. 7. Resolution No. 19-2010 approving an amendment to extend the Memorandum of Understanding among the City of South San Francisco, Redevelopment Agency of the City of South San Francisco and Oyster Point Ventures LLC for potential development of the Oyster Point Marina and Oyster Point Business Parlc. Motion-Boardmember Garbarino/Second-Boardmember Gonzalez: To approve Consent Calendar Items No. 1, 2 & 7. Unanimously approved by voice vote. Item 3: Boardmember Matsumoto apologized for not having said so during meetings with the Executive Director, but felt when items include the approval of large sums of money, they should not be on Consent. Though she had no problems with any of the items and supported them all, she felt they should at least be read and disc?used and suggested a policy be implemented for the future. Ivlotion-Boardmember Gonzalez/Second- Boardmember M~at:eumoto: To approve Resolution No. 15-2010. Unanimously approved by voice vote. Clarification on item 3 was given by Counsel Mattas, who not:ed~ it was a resolution that initiated a process and providing direction to Staff to move forward with discussions and all processes necessary for an RDA pian amendment. Public isle-arings would be conducted later on in the process. Also, there would be opportunity for additional data and public input. Boardmember Matsumoto asked if the Agency was committed to the numbers. Redevelopment Manager Marty Van Duyn stated there was ne;itlier a commitment to the numbers nor to amend the plan. This was a preliminary step a.nd staff would come back with further information and requests in approximately 8-10 months. Libby Seifel of Seifel Consulting explained the amendment would enable the achievement of Agency projects and specifically allow the Agency to amend various components of RDA plans that were presently fiscal constraints. The amendments adjust the tax increment collection limit, streamline and organize it to allow the additional capacity needed to undertake change and change and extend the time for incurrin;; debt. Item 4: Ms. Seifel explained item 4 as the beginning of a process necessary to undertake a plan amendment. A key reason for the amendment would be to ;allow dialogue with the taxing amenities. Key document preparation would also be involved, including a blight analysis of the remaining conditions in the area that warrant Agency investments. Also, refining the program, tax increment projections and pass throughh projections would be completed. A preliminary report would be brought back for review and authorization. REGULAR REDEVELOPMENT AGENCY MEETING SEPTEMBER 8, 2010 MINUTES PAGE 2 Prior to final action, there would be notice of a public hearing and a community workshop inviting public input. A final report would then be prepared and sent to the state. The process was expected to be approximately 8 to12 months but Seifel would try to keep it as quick as pessible. The primary taxing entities were identified as the School District, the County and the Community College District. Motion-Boardmember Matsumoto/Second- Boardmerriber Garbarino: To approve Resolution No. 16-2010. Unanimously approved by voice vote. Item 5: Chairman Addiego wanted to address concerns he had heard from local businesses pertaining to why local companies can not be automatically selc;cted for certain bids. For the record, Chairman Addiego asked Counsel Mattas to explain the regulations for awarding contracts and the possible consequences of not following said regulations. Counsel Mattas responded under state law, the City is required to award Public Works contracts to the lowest responsible bidder. The Agency/City would likely face challenges from the low bidder and be exposed to damages for lost profit. Boardmember Matsumoto requested information be included in the notes when any of the firms were Disadvantaged Business Enterprises ("DBE"). Counsel Mattas explained DBE could be a component as to whether the firm was qualified to receive contracts but would not override the lowest bidder obligation. He noted the lowest bidder obligation applied specifically to Public Works contracts, but other contracts the City entered into were not necessarily held to that consideration. Boardmember Garbarino questioned whether the minority contractor formula was still in use, related to a percentage of the money for the project. Counsel Mattas stated in California there was also an overlay ol~Proposition 209. If more information was needed, background information on the regulatory requirements could be provided by Director White. There were two sets of regulations. depending on the source of funding, State or Federal. Motion-Boardmember Matsumoto/Second- Vice Chair Mullin: To approve Resolution No. 17-2010. Unanimously approved by voice vote. Item 6: Redevelopment Consultant, Armando Sanchez explained this action involved increasing the Brookwood contract for development management services of 418 Linden Avenue. The increase of $150,000 would include the costs of~e~lgineering, and environmental and marketing sub-consultants. These costs were; not initially included for the Project at the time of execution because they were unknown.. Boardmember Gonzalez recalled it being explained but did not remember the fees being left open. He questioned if there were any more openings in the deal. Consultant Sanchez responded this would get the project through the entitlement process, but there was anticipation to come back at phase 2 with bridging; documents. REGULAR REDEVELOPMEN"T AGENCY MEETING SEPTEMBER 8, 2010 MINUTES PAGE 3 Motion-Boardmember Matsumoto/Second-Boardmember Gonzalez: To approve Resolution No. 18-2010. Unanimously approved by voice vote. CLOSED SESSION 8. Real Property Negotiations Pursuant to Government Code Section 54956.8 Related to: 201 Grand Avenue Agency Negotiator: Marty Van Duyn 207 Grand Avenue Owner: David Newman 217-219 Grand Avenue Owner: Pasco 223-225 Grand Avenue Owner: Romo APN# 012-316-060 Grand Avenue Owner: Pasco. Closed Session opened: 6:53 pm. Open Session resumed: 7:05 p.m. Report out of Closed Session by Chairman Addiego: Direction given no action taken. ADJOURNMENT Being no further business, Chairman Addiego adjourned the meeting at 7:05 p.m. S}~bmit~ d by: t/ artinelli-Larson, Clerk City of South San Francisco Approvedl: Mark N. Addiego, Chairman City of Soul:h San Francisco Rr;GULAR REDEVELOPMENT AGENCY MEETING MINUTES SEPTEMBER 8, 2010 PAGE 4 Listing of RDA Payments for Co~ur~cil Review RDA AGENDA ITEM # 2 I certify that the payments shown on this payment register are accurate and sufficient funds were available for payment.* DATED; ~~ ~~ ~ - ~® FIB NCE DIRECTOR *Note: Items below do not include payroll related payments Checks: Date 09/03/10 09/08/10 09/10/10 06/15/10 09/17/10 09/22/10 09/29/10 10/01/10 10/06/10 Electronic Payments: Date 10/01/10 Total Payments $ Amount 5,508.81 71,434.63 14, 670.46 13, 865.05 2,272.04 36, 893.49 11, 764.00 13,573.57 27,517.69 Amount To Description 109,052.35 Bank of New York Debt Service 306,552.09 V ~ ~ ~ ~ ~ ~ ~ Y N N U _ W d. ~. y ~ U i N ~ O N ~ ~ O -a N (0 ~ m ~ ~ U ~ U ~ ~ '~ ~ o C r" ~ ¢ N ~ N N ~ Ern ~ O ~ w ~ ~ ~ > ~ ~ ~ O ~ ~ >, ~ N +-, p ~ U ~ ~' ~~ C ~ ~ J N C ~ N ~ d a ca Z O H a U W W U O Z H Z O Q W U O z w O Z o ~ N ~ O Z O ~ w _U Z 0 M ~ M OJ U Z _ ~ ~ W ~ H ~ W ~ LPL O J Q W ~ ~ ~ O W CEO ~' N H ~ O O d = Z ~ W Y Z J ~ OW o r- ~ M ~ ~ ~ ~ N N ~ ~ ~ F- a w 0 z w a O J W W d ~ ~ Z ~ w ~ ~ W ~ 1- ~ UO ~ Z ~ Z ~ oQ oQ~ z a ~ ~ w w O Z `-~ o O Q r ~ d Z ~ D W ~ >. ti ~W ~O ~W O~ U ~O V J .W ZD O V W a a~ y w c d W 0 0 N a~ 0 a w m` a N O ~ X Cfl 0 0 0 m 0 0 00 0 ~ ~ (p N N O M p Y I~ h~ ti ~ O ~ W O O O O ~ O N N O W N ~ N N N ~ ~ ~t N ~ N '~7 N d' N N ~ N ~ O ~ ~ = r ~- ~ ~ ~ ~ m co U W a ~ ~ o O ~ ~ ~ in co ~ ~ ~ ap M ~ N ~ .- W ~ W U O O O tt O O ~ ~ ~ O m ri M M ~ ~ ~ v d• ~ M ch c'7 ~ p~ M O O D M ~ ~ ~ ~ O O N ~ lf) CO O ~" ~ ~- O O N r ~ ,C ~ d' 3 _N ~ O ~ ~ ~o -p N ~ ~ m O O U ~ U ~ ~ N .U ~ O ~ ¢ N LL ~ N ~ E rn ~ o ~ ~ N ~~ ~ N .Q O ~ ~ ~_ O 7 U °' m~ •N +. ~ ~ J N C ~ N ~ d T c~ d Z O H a U W W U O Z H Z O a W U O z W Q O Z N O o z° o > j U ~ ~ ~ W W U U U Q U O "- ~ W ~ ~ ~ p W W a ~ CA ~ J W Q Z W O a ~ U W o ~ w Z ~ ¢ ~ OD iri °- ~ W Z Q p Z ~ fn (n Cn d J W M ~ ~ W W W X~~~ W W W ~ J ~ ~ ~ ~ U O > U ~ ~" O O O ~ ~ ¢ F- Z ~ >' Z Z Z m U Z ~ Q Q Q ~ ~ C~ ~ ~ Z Z U U U Q Q (~ Z Z~ ~ W W W U ~ ~ ~ ~ Cp ~ oo ~ co v ~n O co rn o M I~ lC> r ej h 00 Ln O O to 00 O N ~ ~ O O '~Y N O h 1~ ~ N N O O C'7 M ~' 00 T- N ~- a w 0 z w a O J W W 0 E- z O Z U d otS U U_ ~ ~ Z Z J O ~ Q U = W J m O ~ ~ o m o O U Z O - > ~ W O = O J ~ U W a O ca Z ~ W ~ ~ U W ~ ~ ~ } O Q ~ ~ Y U 4 J O d Q J J W w z M ~~ ~W ~~ ~W o~ V °~ O UJ ~W Z~ O U W i w a G1 H w m ~, 4 _W d O U O J O U O w z W a 0 0 N J Igo '~t Esq. a U L w a a~ a N w c m e a U Z U a U ~ rn ~ " w D O M ~9 0 0 N o~ 0 a w d N O #k of O O 6~ O) O) 07 O O ~f ~ '~t V' 'cf o Y oo rn rn rn rn rn rn U N N N N N N N M W `* ~ ~ d' ~ ~ V' ~ = r ~' r ~ U d ~ W ~ O 00 r p r 0 U ~, ao cp h ~n ~ ap ~ M O ~ M O O N ~ N N N r N > i 00 r r r r Z O O N N N N N r O N N N N N ¢ J W p ~ U W H W Z ~ ~ W W ~ ~ Z J 3 ~ M J O ~ ~ .~ Z U ~ U U J ~' O O W> ~ ~ c i O M r M F¢- ~ Z ~ C H Z ~ O O m ~- Z Q Z ~ ~ W o,,-~ g°-Q ~ ~ ~ U vii ~~ _Z ~~ U Z ~ U W U ~ _ ~ Q O N ~ 4. 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Staff Repot c9LIFOR~1~ DATE: October 13, 2010 TO: Redevelopment Agency Board FROM: Marty Van Duyn, Assistant Executive Director RDA A GENDA ITEM # 3 SUBJECT: A RESOLUTION AUTHORIZING THE EXPENDITURE OF TAX INCREMENT FUNDS FOR THE REHABILITATION OF 339 COMMERCIAL AVENUE, ADOPTING FINDINGS REQt1IRED BY HEALTH AND SAFETY CODE SECTION 33445, AND AUTHORIZING AWARD OF CONTRACT FOR THE PRC-JECT TO HARGENS INC. OF SOUTH SAN FRANCISCO, IN AN AMOUNT NOT TO EXCEED $85,503.45. RECOMMENDATION It is recommended that the Redevelopment Agency Board. adopt the attached Resolution authorizing the expenditure of tax increment funds for the rehabilitation of 339 Commercial Avenue, adopting findings required by Health and Safety Code Section 33445, and authorizing award of contract for the project to Hargens Inc. of South San Francisco, in an amount not to exceed $85,503.45. BACKGROUND/DISCUSSION The properly at Commercial Avenue is owned by the Redevellopment Agency and was originally acquired and remodeled in 2002. This summer, both units were found to be in need of major bathroom rehabilitation and replacement of sheetrock in several bedrooms due to moisture and mildew resulting from bathroom water seeping through the walls. The rear door of one unit has significant water intrusion and requires that a new pre-hung rE;ar door be installed. Inmid-August staff issued a Request for Bids to six (6) contractors for the proposed renovations. Subsequently, on August 23, staff conducted apre-bid site inspection which six contractors (6) attended. Informal Bids were required to be received by August 31. No bids were received by the due date, thus the opportunity to have the Agency Board approve a construction contract was not possible at the intended September 8th meeting. Re-bidding the project was determined not to be cost effective nor efficient given that one of the residents has been temporarily relocated to smaller accommodations at the Agency's Miller Avenue property. A provision in the State's Public Contract Code, Section 20166; allows the Agency to negotiate with a contractor of its choosing "if no responsive bids were received" in the original bidding process. For that reason, staff negotiated a bid price with Hargens Inc. to undertake the work required at 339 Commercial Avenue to ensure timely completion of the rehabilitation of the duplex. Hargens Inc. is a locP'I~ontractor whose ownership is 100% minority ---a cnni ---- --- , , , Staff Report Subject: 339 Commercial Avenue Rehabilitation Contract Award Page 2 This Rehabilitation Project is consistent with the Redevelopment Five Year Implementation Plan adopted by the Agency for the Project Area. The proposed renovations will eliminate blighted conditions, preserve Agency property and will be of benefit to the Project Area. The Project will improve the appearance of the units and the living conditions of their very low-income residents. No other reasonable means of undertaking the proposed improvements is available to the Agency. Both the Redevelopment Agency and the City Council must snake findings consistent with Health and Safety Code Section 33445, and each has a respective Resolution for their approval on the agenda. FUNDING Funding is currently available in the Agency operating budget fir maintenance of Agency owned property. A yearly amount is budgeted in order to rapidly address any problems that arise with the residential or commercial properties owned by the Agency. Since a number of children live in that duplex, quick action is required to maintain the units in the Agency's required standard conditions. CONCLUSION It is recommended that the Redevelopment Agency Board adopt the attached Resolution authorizing the expenditure of tax increment funds for the rehabilitation of 339 Commercial Avenue; adopting findings required by Health and Safety Code Section 33445. and authorizing award of contract for the project to Hargens Inc. of South San Francisco, in an amount not to exceed $85.503.45. ~~ ~ € ` B -, Marty Van Duyn Assistant Executive Director BMN:MVD:NF Attachment: Resolution Construction Contract ~~ Approved:~i ~,U~~. ~ ~/_ , harry M. Nagel ~ r -o.-z~ Executive Director P. 2 RESOLUTION NO. REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING THE EXPENDITURE OF TAX INCREMENT FUNDS FOR THE REHABILITATION OF 339 COMMERCIAL AVENUE, ADOPTING FINDINGS REQUIRED BY HEALTH AND SAFETY CODE SECTION 33445, AND AUTHORIZING AWARD OF A CONTRACT FOR THE PROJECT TO HARGENS INC. IN AN AMOUNT NOT TO EXCEED $85,503.45 WHEREAS, the Redevelopment Agency of the City of South San Francisco (the "Agency") has acquired the property located within the Downtown/Central Redevelopment Project Area (the "Project Area") at 339 Commercial Avenue (the "Property"); WHEREAS, the building located on the Property includes two (2) residential units that are rented at affordable rents to very low-income households; WHEREAS, the Agency intends to undertake necessary rehabilitation of the building located on the Property (the "Project"); WHEREAS, on August 16, 2010, Agency staff sent informal bid notices to six (6) contractors for the project, and on August 23, 2010, Agency staff conducted apre-bid site inspection that was attended by six (6) contractors; WHEREAS, on August 31, 2010, the bid period closed and no responsive bids were received. Therefore, pursuant to California Public Contracts Code, Section 20166, the Agency negotiated directly with two potential contractors, and Harg;ens Inc. ("Contractor") was selected. The Hargens Inc. bid in the amount of $85,503.45 was comprehensive and the lowest responsible bid for the rehabilitation of 339 Commercial Avenue; WHEREAS, Health and Safety Code Section 33445 provides that a redevelopment agency may, with the consent of the legislative body, pay for all or a portion of the cost of for land and cost of construction of any building, facility, structure, or other improvements that are publicly owned and located within or contiguous to the redevelopment project area if the legislative body determines all of the following: a. The buildings, facilities, structures, or other improvements are of benefit to the project area by helping to eliminate blight within the project area or providing housing for low- or moderate-income persons; b. No other reasonable means of financing the acquisition of the land and installation or construction of the buildings, facilities, structures, or other improvements is available to the community; and 1524674.1 c. The payment of funds for the acquisition of land and the cost of buildings, facilities, structures, or other improvements is consistent with the Five Year Implementation Plan adopted by the Agency pursuant to Section 33490; WHEREAS, the proposed expenditure of tax increment funds for the Project will enable the Agency to rehabilitate a residential building that providE;s two (2) units of housing affordable to very low-income households; WHEREAS, the expenditure of tax increment funds for the Project will be of benefit to the Project Area by eliminating blight and by providing affordable housing; WHEREAS, the expenditure of tax increment funds for the Project is consistent with the Implementation Plan adopted by the Agency pursuant to Health and Safety Code Section 33490, in that the Project will further the goals and objectives of the Redevelopment Plan, improve the appearance of the Project Area, and provide housing affordable to very low-income households; and WHEREAS, the Project will not generate sufficient: cash flow to the City of South San Francisco (the "City") or the Agency, and therefore cannot support debt service; the City has no unrestricted general fund revenue available for the Project without a reduction in vital community services; and the City does not have and cannot reasonably obtain revenue available for such purposes, and therefore no other reasonable means of financing the Project exists. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that it hereby: 1. Finds based upon the foregoing recitals and the evidence set forth in the staff report accompanying this Resolution, that: (i) the expenditure of tax increment funds for the Project will be of benefit to the Project Area by helping to eliminate blight within the Project Area and providing housing affordable to very low-income households, (ii) no other reasonable means of financing the Project is reasonably available, and (iii) completion of the Project is consistent with the Implementation Plan adopted for the Project Area. 2. Approves the expenditure of tax increment funds in the amount of Eighty Five Thousand, Five Hundred and Three Dollars and Forty-Five Cents ($85,503.45) for the Project. 3. Authorizes the Executive Director to execute a construction contract with Hargens Inc. for the Project in the amount of Eighty Five Thousand, Five Hundred and Three Dollars and Forty-Five Cents Dollars ($85,503.45). 4. Authorizes the Executive Director to undertake such other actions and to execute such other instruments as may be necessary or desirable in order to carry out the intent of this Resolution. 1524674.1 2 I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a meeting held on the day of , 2010 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Agency Secretary 1524674.1 3 AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO AND HARGENS INC'. This Professional Services Agreement (this "Agreement") is made and entered into between the Redevelopment Agency of the City of South San Francisco, a public body corporate and politic ("Agency") and Hargens Inc., a California Company ("Contractor") effective as of September 27, 2010 (the "Effective Date"). Agency and Contractor are hereinafter collectively referred to as (the "Parties"). WHEREAS, Agency desires to engage Contractor to perform the services described herein, and Contractor desires to perform such services in accordance with the terms and conditions set forth herein. NOW THEREFORE, for good and valuable consideration, and in consideration of their mutual covenants, the Parties hereby agree as follows: 1. SCOpe of Work. Contractor shall complete the work described in Exhibit A attached hereto (the "Work") upon the terms and conditions set forth herein. In the event of a conflict or inconsistency between the text of the main body of this Agreement and Exhibit A, the text of the main body of this Agreement shall prevail. 2. Completion of Work. The Work shall be completed to the satisfaction of the Agency by December 15, 2010 unless such date is extended or otherwise modified by the Agency in writing. 3. Payment Terms. Agency shall pay Contractor the sum of Eighty-Five Thousand Five Hundred Three Dollars and Forty Five Cents ($85,503.45) (the "Contract Price") for the full and satisfactory completion of the Work in accordance with the terms and conditions of this Agreement. The Contract Price is the entire compensation payable to Contractor for the Work performed hereunder, including all labor, materials, tools anti equipment furnished by Contractor. Agency shall pay the Contract Price to the Contractor within Thirty (30) days following the Agency's inspection and approval of the Work,. 4. Standard of Performance. Contractor shall. perform all Work in a first-class manner in conformance with the standards of quality normally observed by a person practicing in Contractor's profession. 5. Independent Contractor. Contractor has full control over the means and methods of performing the Work and is solely responsible for Contractor's acts and omissions and the acts and omissions of Contractor's employees, agents, and subcontractors (if any). At all times during the term of this Agreement, Contractor and Contractor's employees, subcontractors (if any), and agents shall be independent contractors and shall not be employees or agents of the Agency. Neither Contractor nor Contractor's employees, subcontractors or agents shall have authority, express or implied, to bind the Agency to any obligation whatsoever. Without limiting f , the generality of the foregoing, notwithstanding any state, federal or local policy, rule, regulation, law, or ordinance to the contrary, neither Contractor nor any of Contractor's employees, agents, or subcontractors providing services under this Agreement shall qualify for or become entitled to, and hereby agree to waive, any and all claims to, compensation, benefit, or any incident of employment by Agency, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of Agency, and entitlement to any contribution to be paid by Agency for employer contributions and/or employee contributions for PERS benefits. 6. Ins ection. All Work performed and materials (if any) provided by Contractor shall be subject to inspection and approval by the Agency. 7. Contractor's Warranties and Guarantee. Contractor warrants to the Agency that all materials and equipment furnished under this Agreement will be new unless Agency agrees otherwise in writing, and that all Work will be of good quality, free from faults and defects and in conformance with this Agreement. All Work not so conforming to these standards may be considered defective. If required by the Agency, the Contractor shall furnish to the Agency satisfactory evidence as to the kind and quality of materials, equipment and methods of installation by the Contractor. Contractor shall guarantee the Work to be free of defects in material and workmanship for a period of one (1) year following the Agency's acceptance of the Work ("Contractor's Guarantee"). As part of Contractor's Guarantee, Contractor agrees to make, at Contractor's sole cost and expense, all repairs or replacements made :necessary by defects in material or workmanship which become evident within the one-year guarantee period. 8. Assignment and Subcontracting. The Parties recognize that the qualifications and competence of Contractor were, and are a substantial inducement to Agency's selection of Contractor to perform the Work and Agency's agreement to enter into this Agreement. Contractor shall not subcontract, assign or transfer responsibility for the performance of any portion of the Work without the Agency's prior written consent. Any agreement between Contractor and a subcontractor or assignee pursuant to this Agreement shall provide that the subcontractor or assignee shall procure and maintain insurance coverage in accordance with all requirements specified in this Agreement, including without limitation the inclusion of the Agency Indemnitees as additional insureds. 9. Indemnification. To the fullest extent permitted by law, Contractor shall indemnify, defend (with counsel acceptable to the Agency), and hold harmless the Agency and its elected and appointed officers, officials, employees, agents, contractors and consultants (collectively, the "Agency Indemnitees") from and against any and all liability, loss, damage, claims, expenses and costs (including, without limitation, attorneys' fees and costs of litigation) (collectively, "Liability") of every nature arising out of or in connection with Contractor's performance of the Work or Contractor's failure to comply with this Agreement, except such Liability caused by the sole negligence or willful misconduct of the Agency Indemnitees. 2 ~ ., 10. Insurance. Prior to beginning the Work and continuing throughout the term of this Agreement, Contractor (and any subcontractors) shall, at Contractor's (or subcontractor's) sole cost and expense, obtain and maintain insurance in accordance with the requirements set forth in this Section 10 and with coverage in at least the amounts set forth in Exhibit B. All insurance policies shall be written on an occurrence basis and shall name the Agency Indemnitees (defined in Section 9) as additional insureds. ISO form CG 1020 (11!85) or its equivalent is required. The endorsement must not exclude coverage for products or completed operations. Prior to beginning the Work, Contractor shall furnish Agency with certificates of insurance in form acceptable to Agency evidencing that Contractor has obtained the insurance required by this Section 10 and Exhibit B and duly executed endorsements evidencing such additional insured status. The certificates shall contain a statement of obligation on the part of the carrier to notify Agency of any material change, cancellation, termination or non-renewal of~the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation, termination or non-renewal. Upon Agency's request, Contractor shall provide Agency with certified copies of the required insurance policies. All policies shall be provided by insurers admitted to do business in California and which have a current A.M. Best's rating of no less than A:VII. The C;ontractor's (and subcontractor's) insurance coverage shall be primary insurance and shall not be contributing with any insurance or self-insurance maintained by Agency, and the policies shall so provide. The insurance policies shall contain a waiver of subrogation for the benefit of the Agency. Any deductible or self-insured retention must be declared to and approved by the Agency. At the option of the Agency, either the insurer shall reduce or eliminate such deductible or self-insured retention as respects the Agency, or the Contractor shall procure a financial guarantee in an amount equal to the deductible or self-insured retention guaranteeing payment of losses and related investigations, claims administration and defense expenses. 11. Compliance with all Applicable Laws; Nandiscrimination. Contractor shall comply with all applicable local, state and federal laws., regulations and ordinances in the performance of this Agreement. Contractor shall not discriminate in the provision of service or in the employment of persons engaged in the performance of this Agreement on account of race, color, national origin, ancestry, religion, gender, marital status, sexual orientation, age, physical or mental disability in violation of any applicable local, state or federal laws or regulations. 12. Licenses. Contractor represents and warrants that Contractor possesses all licenses, permits, and qualifications legally required for the performance of the Work. Contractor shall, at Contractor's sole cost and expense, maintain all such licenses, permits and qualifications in full force and effect throughout the term of this Agreement. 13. Termination. Agency may terminate or suspend this Agreement at any time and without cause upon written notification to Contractor. Upan receipt of notice of termination or suspension, Contractor shall immediately stop all work in progress under this Agreement. The Agency's right of termination shall be in addition to all other remedies available under law to the Agency. G~ <~ ;~>;~ 14. Notices. All notices and communications under this Agreement shall be given in writing by personal delivery or U.S. mail, postage prepaid, and return receipt requested, addressed as follows: Agency: Redevelopment Agency of the City of South San Francisco Attn: Norma Fragoso 400 Grand Avenue South San Francisco, CA 94080 Contractor: Hargens Inc. Attn: Tom Hargens 205 Utah Avenue South San Francisco, CA 94080 15. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 16. Governing Law; Venue. The laws of the State of California shall govern this Agreement without regard to principles of conflicts of laws. Any action to enforce or interpret this Agreement shall be filed in the Superior Court of San Mateo County, California or in the Federal District Court for the Northern District of California. 17. Integration; Amendments. This Agreement, including Exhibits A and B attached hereto and incorporated herein, represents the entire and integrated agreement between Agency and the Contractor with respect to the subject matter hereof, and supersedes all prior negotiations, representations or agreements, either written or oral with respect thereto. This Agreement may be modified or amended only by a subsequent written agreement signed by both Parties. 18. Attorneys' Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in addition to any other relief to which such party may be entitled. 19. Waiver. No waiver of any breach of any covenant or provision of this Agreement shall be deemed a waiver of any other covenant or provision hereof, and no waiver shall be valid unless in writing and executed by the waiving party. An extension of time for performance of any obligation or act shall not be deemed an extension of the time for performance of any other obligation or act, and no extension shall be valid unless in writing and executed by the waiving p~Y• 20. No Third Party Beneficiaries. Nothing contained in this Agreement is intended to or shall be deemed to confer upon any person, other than the Parties, any rights or remedies hereunder. 4 ~ 21. Assi nment. No assignment or transfer in whole or in part of this Agreement shall be made or shall be effective without the prior written consent of Agency. 22. Headings. The headings of the sections and exhibits of this Agreement are inserted for convenience only. They do not constitute part of this Agreement and are not to be used in its construction. 23. Non-Liability of Officials, Employees and Agents. No officer, official, employee or agent of Agency shall be personally liable to Contractor in the event of any default or breach by Agency or for any amount which may become due to Contractor pursuant to this Agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date written above. AGENCY: By: Print Name: Title: ATTEST: Agency Secretary APPROVED AS TO FORM: Agency Counsel CONTRACTOR: By: Print Name: Title: 5 E, . _, Exhibit A SCOPE OF WORK Exhibit B INSURANCE REQUIREMENTS Contractor and all subcontractors working on behalf of Contractor in performing the Work shall maintain throughout the term of this Agreement, insurance coverage in the following amounts and in accordance with the requirements specified in Section 8 of the Agreement: Workers' Compensation Insurance in compliance with applicable law and Employer's Liability Insurance for any and all persons employed directly or indirectly by Contractor in an amount equal to statutory requirements, but in no event less than ONE MILLION DOLLARS ($1,000,000) per accident. 2. Commercial general liability insurance on ISO Occurrence Form CG 0001, in an amount not less than ONE MILLION DOLLARS ($1,000,000) combined single limit per occurrence, TWO MILLION DOLLARS ($2,000,000) annual aggregate, for bodily injury, property damage, products, completed operations and contractual liability coverage. The policy shall also include coverage for liability arising out of the use and operation of any Agency-owned or Agency-furnished equipment used or operated by the Contractor, its personnel, agents or subcontractors. 3. Comprehensive Automobile liability insurance on ISO Form CA 0001, Code 1, Any Auto in an amount not less than ONE MILLION DOLLARS ($1,000,000) per occurrence for bodily injury and property damage including coverage for owned and non-owned vehicles. 1427007.1