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HomeMy WebLinkAboutAG RPTS 2003 0521 RDA REGJ ESTABLISHED '' of OF Resolution No. 2003 -117 MOORPARK REDEVELOPMENT AGENCY REGULAR MEETING AGENDA WEDNESDAY, MAY 21, 2003 6:30 P.M. Moorpark Community Center 799 Moorpark Avenue 1. CALL TO ORDER: 2. ROLL CALL: 3 . PUBLIC COMMENT: 4. PRESENTATION /ACTION /DISCUSSION: A. Consider Approval of Grant Agreement for Building and Site Improvement Grant to Catholic Charities Los Angeles, Inc. for $28,300 for a Temporary Location of Their Moorpark Service Center. Staff Recommendation: 1) Approve Grant Agreement with Catholic Charities Los Angeles, Inc. subject to final language approval by the Executive Director and authorize Executive Director to sign Agreement on behalf of the Agency; and 2) Adopt Resolution No. 2003- , amending the Agency Operating Budget. ROLL CALL VOTE REQUIRED (Staff: Hugh Riley) B. Consider Modification to Terms and Conditions for Agency Financing to Janss IV Recreation Inc. for Theater on High Street and Amend Agency Budget. Staff Recommendation: 1) Approve the modification to the terms of the loan to Janss IV Recreation as stated in the agenda report; and 2. Approve Resolution No. 2003- , amending the Agency Budget. ROLL CALL VOTE REQUIRED (Staff: Hugh Riley) Redevelopment Agency Agenda May 21, 2003 Page 2 5. CONSENT CALENDAR: A. Consider Approval of Minutes of Regular Meeting of May 7, 2003. Staff Recommendation: Approve minutes. B. Consider Adoption of Resolution Rescinding Resolution No. 2003 -115 Amending the Agency Budget for the Purchase and Sale of Property at 47 -51 West High Street. Staff Recommendation: Adopt Resolution No. 2003- (Staff: Hugh Riley) C. Consider Resolution Amending the Moorpark Redevelopment Agency Fiscal Year 2002/2003 Budget to Provide for Professional Contractual Services Related to Demolition of Agency -owned Structures. Staff Recommendation: Adopt Resolution No. 2003- ROLL CALL VOTE REQUIRED. (Staff: Hugh Riley) 6. CLOSED SESSION: A. CONFERENCE WITH LEGAL COUNSEL'- ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Subdivision (b) of Section 54956.9 of the Government Code: (Number of cases to be discussed - 4) B. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to Subdivision (c) of Section 54956.9 of the Government Code: (Number of cases to be discussed - 4) 7. ADJOURNMENT: Any member of the public may address the Agency during the Public Comments portion of the Agenda, unless it is a Public Hearing or a Presentation /Action /Discussion item. Speakers who wish to address the Agency concerning a Public Hearing or Presentations /Action/ Discussion item must do so during the Public Hearing or Presentations /Action /Discussion portion of the Agenda for that item. Speaker cards must be received by the City Clerk for Public Comments prior to the beginning of the Public Comments portion of the meeting and for Presentation /Action /Discussion items prior to the beginning of the first item of the Presentation /Action /Discussion portion of the Agenda. Speaker Cards for a Public Hearing must be received prior to the beginning of the Public Hearing. A limitation of three minutes shall be imposed upon each Public Comment and Presentation /Action /Discussion item speaker. A limitation of three to five minutes shall be imposed upon each Public Hearing item speaker. Written Statement Cards may be submitted in lieu of speaking orally for open Public Hearings and Presentation /Action /Discussion items. Copies of each item of business on the agenda are on file in the office of the City Clerk and are available for public review. Any questions concerning any agenda item may be directed to the City Clerk at (805) 517 -6223. In compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the City Clerk's Department at (805) 517 -6223. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102- 35.104 ADA Title II). ITEM 4. A. CITY OF MOORPARK, CAI_,T_F7nrWX- Redevelopment Agencv, Meeting of -- -21- 20c,-;5 By. 1 MOORPARK REDEVELOPMENT AGENCY AGENDA REPORT TO: Honorable Board of Directors FROM: Hugh R. Riley, Assistant Executive Director �. DATE: May 14, 2003 (MRA Meeting of 5/21/03) SUBJECT: Consider Approval of Grant Agreement for Building and Site Improvement Grant to Catholic Charities Los Angeles, Inc. for $28,300 For a Temporary Location of Their Moorpark Service Center DISCUSSION On April 16, 2003 The Moorpark Redevelopment Agency approved a 2 -year lease of .44 acres at the corner of Fitch Avenue and Minor Street to Catholic Charities for a temporary office location to allow the continuation of their food and clothing distribution and emergency assistance services in Moorpark. The Agency also approved a grant to Catholic Charities not to exceed $28,300 for certain building and site improvements at the temporary service location. Catholic Charities has secured the donation of a 60' X 72' temporary modular building that has been located on the temporary site. Sharma General Engineering Contractors, Inc. has donated the modular building as well as the cost of dismantling and reassembly, transport, set -up, site grading and a temporary parking area. Donations are also being sought by Catholic Charities for the necessary interior modifications to the building and to construct handicapped access ramps and perimeter skirting. Agency Board of Directors May 12, 2003 Page 2 Staff has prepared a Grant Agreement with Catholic Charities that includes recommended provision for the use of Agency funds for the project. Agency funds will be used for the following improvements: Temporary Power $ 2,000 Water service 3N "Meter $ 2,306 Connection Fee (water) $ 2,235 Sewer Connection /fee $ 2,665 Installations (includes street cuts, pipe and valve installation $ 8,094 4° Temporary sidewalk- 400 LF @ $20.00 $ 8,000 Fencing & landscaping $ 3,000 TOTAL $28,300 STAFF RECODDAENDATION 1. Approve Grant Agreement with Catholic Charities Los Angeles, Inc. subject to final language approval by the Executive Director and authorize Executive Director to sign Agreement on behalf of the Agency. 2. Adopt Resolution No. 2003 - Amending the Agency Operating Budget (ROLL CALL VOTE REQUIRED) Attachments: Grant Agreement Resolution No. 2003- GRANT AGREEMENT BY AND BETWEEN THE MOORPARK REDEVELOPMENT AGENCY CATHOLIC CHARITIES $ 28,300 FOR TEMPORARY SERVICE OFFICE LOCATION GRANT AGREEMENT THIS AGREEMENT, made and entered into this _ day of , 2003, between the Moorpark Redevelopment Agency, hereinafter referred to as "GRANTOR ", and CATHOLIC CHARITIES, a California non - profit organization, hereinafter referred to as "GRANTEE ". ARTICLE 1. TERM OF CONTRACT Section 1.01. This agreement will become effective on May 19, 2003, and will continue until June 30, 2004, or until stipulated site improvements have been completed unless sooner terminated pursuant to the terms of this agreement. ARTICLE 2. IMPROVEMENTS TO BE MADE BY GRANTEE Section 2.01. GRANTEE agrees to make the Improvements specified in Exhibit "A ", entitled "Site Improvements ", associated with the location of a temporary Service Location on GRANTOR -OWNED property at Fitch Street and Minor Street and more particularly described in "Exhibit B." Exhibits "A" and "B" are attached hereto and made a part of this Agreement as though fully set forth herein. GRANTEE further agrees to provide Programs and Services including but not limited to food and clothing distribution at the temporary location. Responsible Person In Char Section 2.02. The Regional Director will serve as the employee of the GRANTEE principally responsible for execution of GRANTEE'S obligations under this Agreement and shall serve as principal liaison between GRANTOR and GRANTEE. In the event the services of this position are no longer available, the GRANTEE reserves the right to terminate this contract at any time. GRANTEE shall be entitled to reimbursement for all expenses incurred prior to the effective date of such termination, and as stated in Article 3 of this Agreement. Method of Completing Improvements Services Section 2.03. GRANTEE will employ any and all contractors or tradesman necessary to complete the site improvements detailed in "Exhibit A ", including securing the necessary permits and licenses associated with the improvements. Grantee agrees to comply with all applicable federal, County and City requirements relative to the building and site improvements. ARTICLE 3. COMPENSATION Section 3.01. As sole and complete consideration for the building and site improvements to be performed by GRANTEE, GRANTOR agrees to pay to GRANTEE, a total GRANT not to exceed $28,300. Payment of Compensation Section 3.02. GRANTOR Shall pay to GRANTEE an advance of $16,000 upon execution of this Agreement. GRANTEE shall submit to GRANTOR a written statement of costs obligated in connection with the improvements completed commencing with the month ending May 31, 2003. Payment to GRANTEE shall be made by the GRANTOR within 35 days of receipt of statement of costs, except for those which are contested or questioned and returned by City, with written explanation within 30 days of receipt of statement. GRANT AGREEMENT \Catholic Charities 2003 May 15, 2003 Page 1 of 14 GRANTEE shall provide to GRANTOR a written response to any invoice contested or questioned and further, upon request of City, provide City with any and all documents related to any invoice. ARTICLE 4. OBLIGATIONS OF GRANTEE Section 4.01 GRANTEE agrees to provide food and clothing distribution and other community services at the temporary service location for a period of not less than two years. Section 4.02 GRANTEE further agrees to comply with any additional provisions of the Lease Agreement between the GRANTEE and the GRANTOR dated , 2003 GRANTEE shall obtain any necessary permits and licenses that may be necessary for its performance of this Agreement. Assignment Section 4.03. Neither this agreement nor any duties or obligations under this agreement may be assigned by GRANTEE without the prior written consent of GRANTOR. Fiscal Control Section 4.04. The GRANTEE shall establish such fiscal controls and fund accounting procedures as may be deemed necessary by GRANTOR to assure proper dispersal of, and accounting for, funds paid to the GRANTEE under this Agreement. ARTICLE 5. OBLIGATIONS OF GRANTOR Cooperation of GRANTOR Section 5.01. GRANTOR agrees to provide payments in a timely manner and to comply with all reasonable requests of GRANTEE relative to, and to provide access to, all documents reasonably necessary for the performance of GRANTEE'S obligations under this Agreement. ARTICLE 6. TERMINATION /SUSPENSION OF AGREEMENT Termination for Convenience Section 6.01. This Agreement may be terminated by either party after thirty (30) days written notice of intention to terminate, setting forth the reasons for and effective date of such termination, has been given to the other party, provided, however, that no notice of termination by GRANTEE shall be effective unless GRANTOR has agreed to release GRANTEE from its obligations pursuant to the Agreement. Alternatively, the Agreement will be automatically terminated in the event that GRANTEE ceases to utilize the site for temporary office space under the terms of the Lease Agreement. GRANT AGREEMENT \Catholic Charities 2003 Page 2 of 14 May 15, 2003 ARTICLE 7. GENERAL PROVISIONS Independent Contractor Section 7.01. The GRANTEE is and shall at all times remain as to the GRANTOR a wholly independent Contractor. Neither the GRANTOR nor any of its officers, employees, servants or agents shall have control over the conduct of the GRANTEE or any of the GRANTEE'S officers, employees, servants, agents or subcontractors, except as set forth in this Agreement. The GRANTEE shall not at any time or in any manner represent that it or its officers, employees, servants, agents or subcontractors are employees of the GRANTOR. Insurance Section 7.02. The GRANTOR does not, and shall not waive any rights that it may have against the Contractor, as contained in this section and described in as contained in this section and described in Sections 1, 2, 3 and 4, 6 and 7 because of the acceptance by the GRANTOR, or deposit with the GRANTOR, of any insurance policy or certificate required pursuant to the Lease Agreement. The hold harmless and indemnification provisions shall apply regardless of whether or not said insurance policies are determined to be applicable to a claim, damage demand, liability, loss, cost or expense described in this section. The Contractor shall secure from a good and responsible company or companies doing insurance business in the State of California, pay for, and maintain in full force and effect for the duration of this agreement the policies of insurance required by this paragraph and shall furnish to the City Clerk of the City certificates of said insurance on or before the commencement of the term of this agreement. Notwithstanding any inconsistent statement in any of said policies or any subsequent endorsement attached thereto, the protection offered by the policies shall: 1. Name the GRANTOR and its officers, employees, servants and agents serving as independent contractors in the role of City Attorney, City Engineer, Moorpark Police or Building Official, as additional insured with the Contractor; 2. Insure the GRANTOR and its officers and employees, while acting in the scope of their duties under this agreement against all claims, demands, damages, liabilities, losses, costs or expenses arising from, or in any way connected with, the performance of this agreement by the Contractor for the City; 3. Bear an endorsement or have attached a rider whereby it is provided that, in the event of cancellation or amendment of such policy for any reason whatsoever, the GRANTOR shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation or amendment is effective. GRANTEE shall give the GRANTOR (30) days written notice prior to the expiration of such policy; and 4. Be written on an occurrence basis. If Contractor utilizes a cost reimbursement contract and /or cash advances, Contractor shall provide a fidelity bond to GRANTOR which meets the following requirements: GRANTEE shall provide and maintain a blanket fidelity bond which shall apply to the performance of any director, officer, or agent of the GRANTEE who signs or authorizes signatures on checks or drafts, or in any manner authorizes the disbursement of project funds. Prior to the payment of program GRANT AGREEMENT \Catholic Charities 2003 Page 3 of 14 May 15, 2003 funds by the GRANTOR, GRANTEE shall furnish GRANTOR a certificate of insurance from an insurer admitted to do business in the State of California verifying that Contractor carries such a bond. Said insurance certificate shall include: a) GRANTOR is named as an additional insured in said bond, with the provision of direct payment to GRANTOR; and b) that said bond shall not be canceled or terminated without a thirty (30) day written notice to GRANTOR. GRANTEE hereby assigns to GRANTOR any right it has to claim indemnification under such bond. GRANTEE, at its sole cost and expense, will obtain and maintain in full force during the term of this contract the following insurance: Commercial General Liability "occurrence" coverage in the minimum amount of $1,000,000 combined single limit (CSL) bodily injury & property damage each occurrence and $2,000,000 aggregate, including personal injury, broad form property damage, products / completed operations, broad form blanket contractual and $100,000 fire legal liability; 2. Commercial Automobile Liability coverage in the minimum amount of $1,000,000 CSL bodily injury & property damage, including owned, non -owned and hired automobiles. Personal Automobile Liability coverage, in the minimum amounts of $100,000 per Person and $300,000 each Accident Bodily Injury and $50,000 each Accident Property Damage for each vehicle to be operated in association with this contract that is not insured under Commercial Automobile Liability; and Workers' Compensation (WC) coverage, in full compliance with California statutory requirements, for all employees of Contractor in the minimum amount of $1,000,000. If any class of employees engaged by Contractor in work under this agreement is not protected by the workers' compensation law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City. 4. Professional Liability (Errors and Omissions) coverage in the minimum amount of $1,000,000 each occurrence and $2,000,000 aggregate. This requirement applies to financial engineering, architectural and medical contracts only. All insurance required will be primary coverage as respects GRANTOR and any insurance or self - insurance maintained by GRANTOR will be excess of Contractor's insurance coverage and will not contribute to it. GRANTOR is to be notified immediately if any aggregate insurance limit is exceeded. Additional coverage must be purchased to meet requirements. The GRANTOR, its Boards, Agencies, Departments, Officers, Employees, Agents and Volunteers are to be named as Additional Insureds as respects work done by Contractor under the terms of this contract on all policies required (except Workers' Compensation). GRANTEE agrees to waive all rights of subrogation against the GRANTOR, its Boards, Agencies, Departments, Officers, Employees, Agents and Volunteers for losses arising directly or indirectly from the activities and /or work performed by GRANTEE under the terms of this Agreement (applies only to Commercial General Liability and Workers' Compensation). GRANT AGREEMENT \Catholic Charities 2003 Page 4 of 14 May 15, 2003 GRANTEE agrees to provide GRANTOR with the following insurance documents on or before the effective date of this contract: 1. Certificates of Insurance for all required coverages; 2. Additional Insured endorsements; 3. Waiver of Subrogation endorsements (A.K.A.: Waiver of Transfer Rights of Recovery Against Others, Waiver of Our Right to Recover from Others); and 4. 60 Days Notice Cancellation Clause endorsements. Failure to provide these documents may be grounds for immediate termination or suspension of this Agreement. It is the responsibility of the GRANTEE to confirm that all terms and conditions of the Insurance Provisions are complied with by any and all Subcontractors that GRANTEE may use for the completion of this Agreement. Insurance coverage in the minimum amounts set forth herein shall not be construed to relieve GRANTEE for liability in excess of such coverage, nor shall it preclude GRANTOR from taking such other actions as are available to it under any other provisions of this Agreement or otherwise in law. Claims Made Insurance If the Professional Liability coverage is "claims made ", GRANTEE must, for a period of three (3) years after the date when Agreement is terminated, completed or non - renewed, maintain insurance with a retroactive date that is on or before the start date of contract services OR purchase an extended reporting period endorsement (tail coverage). GRANTOR may withhold final payments due until satisfactory evidence of the tail coverage is provided by Contractor to GRANTOR. Indemnification and Hold Harmless All activities and /or work covered by this agreement will be at the risk of GRANTEE alone. GRANTEE agrees to defend (at GRANTOR'S request), indemnify and save harmless the GRANTOR, its boards, agencies, departments, officers, employees, agents and volunteers (hereinafter referred to as GRANTOR), from and against any and all claims, lawsuits - whether against GRANTEE, GRANTOR or others, judgements, debts, demands and liability, including, without limitation, those arising from injuries or death of persons and /or for damages to property, arising directly or indirectly out of the obligations herein described or undertaken or out of operations conducted or subsidized in whole or in part by GRANTEE, save and except claims or litigation arising through the sole negligence or wrongdoing and /or sole willful misconduct of GRANTOR. Section 7.03. follows: Records and Reports GRANTEE agrees to supply to GRANTOR with reports as 1. Summary of all financial transactions supported by complete and verifiable source documents. Records shall provide a clear audit trail. 2. Contractor shall prepare and submit to City a Completion Report within thirty (30) days of completion of project including a summary of total costs incurred and other reasonable information requested by GRANTOR. GRANT AGREEMENT \Catholic Charities 2003 May 15, 2003 Page 5 of 14 Notices Section 7.04. Any notice to be given pursuant to this agreement shall be in writing, and all such notices and any other documents to be delivered shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the party for whom intended as follows: T0: Moorpark Redevelopment Agency T0: Catholic Charities 799 Moorpark Avenue 303 North Ventura Ave. Moorpark, CA 93021 Ventura, CA 93001 Attention: Executive Director Attn: Regional Director Entire Aqreement of the Parties Section 7.03. This Agreement supersedes any and all agreements, either oral or written, between the parties hereto with respect to the rendering of services by Contractor to City and contains all of the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by any party or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement shall be valid or binding. Any modification of this Agreement will be effective only if it is in writing executed by the parties hereto. Section 7.04. The covenants and agreements contained herein are binding on the parties hereto, their legal representatives, heirs, successors and assigns. Governinq Law Section 7.05. This agreement shall be governed by and construed in accordance with the laws of the State of California. Attornev's Fees Section 7.06. Should either party hereto institute any action or proceeding of any nature whatsoever in a court of law, equity, or otherwise to enforce any provision of this Agreement or for a declaration of such party's rights or obligations hereunder of for any other remedy, the prevailing party shall be entitled to receive from the losing party its costs, including such amount as the Court or arbitration panel may adjudge to be reasonable attorney's fees for the services rendered the party finally prevailing in any such action or proceeding. Unless judgement goes by default, the attorney fee award shall not be computed in accordance with any court schedule, but shall be such as to fully reimburse the prevailing party of all its /their attorney's fees actually incurred in good faith, regardless of the amount of such judgement, it being the intention of the parties to fully compensate the prevailing party for all attorney's fees paid or incurred in good faith. GRANT AGREEMENT \Catholic Charities 2003 Page 6 of 14 May 15, 2003 Venue Section 7.07. This Agreement is made, entered into, executed and is to be performed in Moorpark, Ventura County, California, and any action filed in any court or for arbitration for the interpretation, enforcement and /or otherwise of the terms, covenants and conditions referred to herein shall be filed in the applicable court in Ventura County, California. GRANTOR'S Agent Section 7.08. The Executive Director of the Moorpark Redevelopment Agency shall have the right to review, coordinate and approve all work to be performed by GRANTEE pursuant to the terms of this Agreement and shall be the GRANTOR'S agent with respect to review, coordination, and approval of the improvements to be made by the GRANTEE. EXECUTED at Moorpark, California, on the date and year first herein above written. Catholic Charities Los Angeles, Inc MOORPARK REDEVELOPMENT AGENCY BY: Title: Attachment: Exhibit "A" Exhibit "B" GRANT AGREEMENT \Catholic Charities 2003 May 15, 2003 BY: Steven Kueny Title: Executive Director Page 7 of 14 - EXHIBIT A- BUILDING & SITE IMPROVEMENTS Install 62' X 70' Modular Buildin Transport modular building to Moorpark Site Grade site and pave parking area and driveway per attached site grading plan Dismantle and reassemble modular building Level modular building and install earthquake anchors Building Improvements Interior drywall repair (after reassembly) Other interior modifications (create larger rooms) Install perimeter skirting Install ADA Ramps Building Plumbing Utilities (Agency Grant) Temporary Power Water service 3/ "Meter Connection Fee (water) Sewer Connection /fee Installations (includes street cuts, Pipe, meter and valve installation Other Site Improvements (Agency Grant) 4' Temporary sidewalk for pedestrian access from Spring Road Fencing & landscaping •. r � fi- T `" . -4 tl .. f R•) f' My t'.: ! ::F r '. g. •Fr T"i: Y n ^' r�r f,. 5 : l -''e5 . {d. 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OPEN %11A� k4 A A#A F/ TCH A VENLIE RESOLUTION 2003- A RESOLUTION OF THE MOORPARK REDEVELOPMENT AGENCY BOARD OF DIRECTORS, MOORPARK, CALIFORNIA, AMENDING THE ADOPTED FY 2002/03 MOORPARK REDEVELOPMENT AGENCY BUDGET TO PROVIDE A SITE IMPROVEMENT GRANT TO CATHOLIC CHARITIES WHEREAS, on June 5, 2002, the Moorpark Redevelopment Agency Board of Directors adopted the Moorpark Redevelopment Agency budget for Fiscal Year 2002/2003; and WHEREAS, the Moorpark Redevelopment Agency Board of Directors approved a Redevelopment Agency budget to be funded by Moorpark Redevelopment Tax Increment funds; and WHEREAS, on April 16, 2003, the Moorpark Redevelopment Agency Board of Directors approved a Site Improvement Grant of $28,300 to Catholic Charities in connection with their temporary site; and WHEREAS, the Moorpark Redevelopment Agency Board of Directors now wishes to amend the adopted budget to reflect the cost for the grant using Moorpark Redevelopment Tax Increment Funds. NOW, THEREFORE, THE MOORPARK REDEVELOPMENT AGENCY BOARD OF DIRECTORS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. $25,515 in Agency hereto, is hereby That a budget amendment in the amount of funds, as described in Exhibit "A" attached approved. SECTION 2. The Agency Secretary shall certify to the adoption resolution of this resolution and shall cause a certified to be filed in the book of original resolutions. Resolution No. 2003 - Page 2 PASSED AND ADOPTED this 21St day of May, 2003. Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt, Agency Secretary Attachment: Exhibit A: Budget Amendment Detail Resolution No. 2003 - Page 3 EXHIBIT A BUDGET AMENDMENT DETAIL Funding Sources Funding Source Account Amount MRA Area 1- Increment & Other 2902 $28,300 Appropriations Current New Budget Budget Budget Unit Object Amount Change Amount 2902 - 2410 -0000 9285 -0- $28,300 $28,300 Approved as to form: TO: MOORPARK REDEVELOPMENT AGENDA REPORT ITEM 4.8 - CTTV OF'kiOC)RPAR.K, CALIFOR -1,1' Redevelopment Agency Meeting of 5-21-0-3 AGE ION: Honorable Agency Board of Directors _ FROM: Hugh R. Riley, Assistant Executive Dirrecto DATE: May 8, 2003 (Agency Meeting of 5/21/03) SUBJECT: Consider Modification to Terms and Conditions for Agency Financing to Janss IV Recreation Inc. for Theater on High Street and Amend Agency Budget DISCUSSION On February 5, 2003, the Budget and Finance Committee reviewed a request from Janss IV Recreation for an additional loan of $250,000 from the Redevelopment Agency for the Theater On High Project for the Theater. This loan is requested in addition to the $100,000 loan already under consideration by the Agency with the same terms (30 year term @ 3% for five years with interest rate tied to the LAIF rate, subject to a 6% interest rate cap.) Staff recommended against the Janss proposed an alternative additional loan would be the sa:. would be payable after five � secured with a first deed of t. Theater). The committee agreed at the next meeting and agree supplemental $100,000 loan for previously discussed with th Redevelopment Agency. requested additional loan. Mr. adding that the term of the le but that the principal balance ears. The full loan would be gust on 45 West High Street (The to consider the additional loan J to recommend approval of the .urniture, fixtures and equipment Board of Directors of the On February 19, 2003, the Budget and Finance Committee (Mayor Hunter and Councilmember Harper) recommended a supplemental loan of $250,000 to be combined with the previously approved loan of $100,000, with terms as follows: a thirty (30) year amortized loan with interest fixed at three per cent (3 %) due in five (5) years. In addition, the owner is required to provide an Irrevocable Letter of Credit for the $350,000 loan amount, with the additional cost to the owner for the Irrevocable Letter of Credit being offset by a $200 /month credit on his monthly loan payment. The form of the irrevocable Letter of Credit shall be approved by Agency Counsel. �r Agency Board of Directors May 15, 2003 Page 2 Irrevocable Letter of Credit for the $350,000 loan amount, with the additional cost to the owner for the Irrevocable Letter of Credit being offset by a $200 /month credit on his monthly loan payment. The form of the irrevocable Letter of Credit shall be approved by Agency Counsel. On March 5, 2003 the Agency Board approved a loan to Janss IV Recreation for $350,000 subject to the terms and conditions recommended by the committee. On March 21, 2003 the Agency received a letter from Mr. Janss regarding his difficulty in securing an Irrevocable Letter of Credit. Agency staff met with Mr. Janss to discuss his concern and recommends that the terms of the $350,000 loan be modified deleting the requirement for a first deed of trust for the property at 45 East High Street as security. The Agency would be the beneficiary of an irrevocable letter of credit for the full principal of the loan but would not contribute to the annual cost of the letter of credit. On May 7, the Budget and Finance Committee (Mayor Hunter and Councilmember Harper)reviewed the proposed modification to the loan terms and the committee recommended approval of the modification as presented in the staff report. STAFF RECOMMENDATION Approve the modification to the terms of the loan to Janss IV Recreation as stated in the staff report. Adopt Resolution No. 2003 - Amending the Agency Budget. (Roll Call Vote Required) Attachment: Letter from Lawrence Janss Company Resolution No. 2003- Janss IV Recreation, Inc. dba THE LAWRENCE JANSS COMPANY March 20; 2003 Steve Kueny City Manager City of Moorpark 799 Moorpark Avenue Moorpark, California 93021 Dear Steve, As you know, the City Redevelopment Agency has approved a loan of $350,000.00 from the Redevelopment Agency for the Theater on High Street. The security for the loan is in the form of a first trust deed on the real property, the theater, followed by my corporate guarantee and finally by my personal guarantee. During the "negotiation" which took place in the finance committee meeting, you suggested that perhaps I could provide further surety in the form of a stand -by letter of credit and I allowed as I thought that I could. Based on that, the committee agreed to recommend the loan to the Redevelopment Agency which, in turn, approved it. It's possible I acted in haste in agreeing to the stand -by letter of credit. At the time, my incomplete understanding of Letters of Credit was that they could be secured simply by being creditworthy and paying an annual fee. What I didn't understand about this particular animal, having never before dealt with them, is that the bank will, as standard practice, require that the L.C. be collateralized by a deposit of a like amount of cash into the bank's coffers in the form of a time certificate of deposit. The upshot of this is that in order to accommodate this final requirement of the loan, I'll be obliged to deposit $350,000 into a long term C.D. which pays perhaps 1 %. In order to accomplish such a transfer of funds, I will have to liquidate equities which I have held for a long period and which shall cause a significant capital gains tax event for me. Further, I am in the throes of getting the theater up and running smoothly, the cost of which, for the first number of months at least, I'll be underwriting due to the nature of this start-up business: I do not feel that it is a prudent business move for me to tie up so much` liquidity by sequestering these funds in low yielding C.D.s for long durations of time, thus hobbling my ability to exercise nimbleness in these challenging economic times. Indeed, wouldn't it be ironic to have the very funds that are designated to underwrite the start-up of the theater be unavailable for that purpose, thus adding to the burden of earning revenue with which to pay the debt service, when the very purpose of tying up those funds would ostensibly be to make the note more secure. The best way to insure the security of the note, it seems to me, is to allow me access to the tools I have in hand that will insure, the smooth start-up of the Theater on High Street. 1408 E. Thousand Oaks Boulevard, Thousand Oaks, CA 91362 -2841 000019 Telephone: (805) 497 -7691 ♦ Fax: (805) 497 -1507 Mr. Steve Kueny March 20 2003 Page 2 I am requesting that the Redevelopment Agency relieve me of the obligation of supplying this stand -by Letter of Credit so as to avoid being subject to the above described punitive financial consequences. I have discussed this situation with Mr. David Sabedra, the banker representing First California Bank, the bank I have chosen to provide the Letter of Credit. I have attached Mr. Sabedra's response to my inquiry. herein. I have invested approximately $1,500;000.00 into the Theater on High Street. The Redevelopment Agency's loan, secured by a first trust deed, is as mentioned, in the amount of $350,000.00. This represents a 23% loan to value ratio. A conventional loan is traditionally secured to value ratio of 70 %, meaning_ that under traditional circumstances, the theater would have to be valued at $500,000.00 to qualify. If, in the worst of cases, I were unable to perform on the loan and the Redevelopment Agency were to have to foreclose on the property, it would own the property for $350,000.00. Were the theater, in its current completely renovated state, to be for sale for $350,000.00, would not the Redevelopment Agency consider it an appropriate asset to purchase at such a price? Please give this request serious consideration as the requirement of locking the above mentioned $350,000.00 in irons is a prospect I do not care to pursue should I not be so obliged. -Yours Truly, ' awrece J ss _?resident � d 000020 RESOLUTION 2003- A RESOLUTION OF THE MOORPARK REDEVELOPMENT AGENCY BOARD OF DIRECTORS, MOORPARK, CALIFORNIA, AMENDING THE ADOPTED FY 02/03 MOORPARK REDEVELOPMENT AGENCY BUDGET TO PROVIDE FOR A LOAN IN THE AMOUNT OF $350,000 TO JANSS IV RECREATION FOR THE THEATER ON HIGH STREET PROJECT WHEREAS, on June 5, 2002, the Moorpark Redevelopment Agency Board of Directors adopted the Moorpark Redevelopment Agency budget for Fiscal Year 2002/2003; and WHEREAS, the Moorpark Redevelopment Agency Board of Directors approved a Redevelopment Agency budget to be funded by Moorpark Redevelopment Tax Increment funds; and WHEREAS, on March 5, 2003, the Moorpark Redevelopment Agency Board of Directors approved a loan of $350,000 to Janss IV Recreation for the Theater on High Street Project to be funded by Moorpark Redevelopment funds; and WHEREAS, the Moorpark Redevelopment Agency Board of Directors now wishes to amend the adopted budget to reflect the cost for a $350,000 loan to Janss IV Recreation for the Theater on High Street Project using Moorpark Redevelopment Tax Increment Funds. NOW, THEREFORE, THE MOORPARK REDEVELOPMENT AGENCY BOARD OF DIRECTORS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That a budget amendment in the amount of $350,000 in Agency funds, as described in Exhibit "A" attached hereto, is hereby approved. Resolution No. 2003 - Page 2 SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this day of May, 2003. Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt, Agency Secretary Attachment: Exhibit A: Budget Amendment Detail Resolution No. 2003 - Page 3 EXHIBIT A BUDGET AMENDMENT DETAIL L uiiUliiy 'Dvulues Funding Source Account Amount MRA Area 1- Increment & Other 2902 Appropriations $350,000 Current New Budget Budget Budget Unit Object Amount Change Amount 2902 -2410 -0000 9282 $400,000 $350,000 $750,000 Approved as to form: j CITY OF - MOORPARK, CALIFORN $, Redevelopment Agency Meeting Of Z_ t L% MINUTES x - Moorpark, California I�'Ell�I 5 . A . OF THE REDEVELOPMENT AGENCY May 7, 2003 A Regular Meeting of the Redevelopment Agency of the City of Moorpark was held on May 7, 2003, in the Community Center of said City located at 799 Moorpark Avenue, Moorpark, California. 1. CALL TO ORDER: Chair Hunter called the meeting to order at 7:19 p.m. 2. ROLL CALL: Present: Agency Members Harper, Mikos, Millhouse, Parvin, and Chair Hunter. Staff Present: Steven Kueny, Executive Director; Joseph Montes, General Counsel; Hugh Riley, Assistant Executive Director; and Deborah Traffenstedt, Agency Secretary. 3. PUBLIC COMMENT: None. 4. PRESENTATION /ACTION /DISCUSSION: None. 5. CONSENT CALENDAR: MOTION: Agency Member Millhouse moved and Agency Member Harper seconded a motion to adopt the Consent Calendar. The motion carried by unanimous roll call vote. A. Consider Approval of Minutes of Regular Redevelopment Meeting Minutes of April 16, 2003. Staff Recommendation: Approve minutes. B. Consider Approval Contract for Demolition of Commercial Structure and Appurtenances at 226 High Street and Adopt Resolution Amending Agency Budget for This and Demolition of 661 Magnolia Street. Staff Recommendation: 1) Award bid for Demolition of 226 High Street to International Environmental Corporation for $9,800; and 2) Approve Resolution No. 2003 -114 amending the Agency Budget. ROLL CALL VOTE REQUIRED fflRMWz Minutes of the Redevelopment Agency Moorpark, California Page 2 Mav 7, 2003 C. Consider Approval of Agreement of Purchase and Sale of Property at 47 -51 West High Street and Adopt Resolution Amending Agency Budget. Staff Recommendation: 1) Approve Agreement of Purchase and Sale of 47 -51 West High Street from Monte Lewis Abbath for $350,000 and related closing costs of $5,000 subject to final language approval by the Executive Director and Agency Counsel; and 2) Approve Resolution No. 2003 -115 amending the Agency Budget. ROLL CALL VOTE REQUIRED D. Consider Awarding Government Accounting Standards Board (GASB) Statement No. 34 Implementation Proposals. Staff Recommendation: 1) Adopt the recommended infrastructure capitalization threshold of $100,000 and fixed asset (equipment) capitalized threshold of $5,000 effective July 1, 2002; 2) Adopt the use of the standard depreciation reporting method rather than the modified approach for the entire infrastructure of the Agency upon adoption of the New Reporting Model; 3) Authorize the Executive Director to execute a professional services agreement with Harris & Associates subject to final language approval by the General Counsel and Executive Director not to exceed $24,990; 4) Accept the proposal from Vavrinek, Trine, Day & Co., LLP, for assistance in implementation of GASB 34 in accordance with their current hourly rates not to exceed $20,000; and 5) Adopt Resolution No. 116 amending the Fiscal Year 2002/2003 Budget to revise the amount of funding for this project per the agenda report. ROLL CALL VOTE REQUIRED 6. CLOSED SESSION: None was held. OO 5 Minutes of the Redevelopment Agency Moorpark, California Page 3 Mav 7, 2003 7. ADJOURNMENT: MOTION: Agency Member Harper moved and Agency Member Millhouse seconded a motion to adjourn the meeting of the Moorpark Redevelopment Agency. The motion carried by unanimous voice vote. The time was 7 :20 p.m. Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt Agency Secretary ITEM s • a. Re evetapme t Age' C, eeling AcTioN, _ .•. ®. "; MOORPARK REDEVELOPMENT AGENCY AGENDA REPORT TO: Honorable Chair and Board of Directors FROM: Hugh R. Riley, Assistant Executive Director DATE: May 13, 2003 (Agency Meeting of May 21, 2003) SUBJECT: Adopt Resolution No. 2003- Rescinding Resolution No. 2003 -115 Amending the Agency Budget for the Purchase and Sale of Property at 47 -51 West High Street. BACKGROUND /DISCUSSION On May 7, 2003, the Agency approved the agreement of purchase and sale of 47 -51 West High Street from Monte Lewis Abbath for $350,000 and related closing costs of $5,000 subject to final language approval by the Executive Director and Agency Counsel. The Agency also adopted a Resolution to amend the budget by appropriating $301,000 from MRA Area 1- Increment & Other (2902). Staff has determined that the funds are already available from MRA Area 1- Increment & Other Fund (2902 -2410- 2007 -9610) and therefore the additional appropriation is not needed. STAFF RECOMMENDATION Adopt Resolution No. 2003 - Attachment: Resolution No. 2003 RESOLUTION NO. 2003- A RESOLUTION OF THE MOORPARK REDEVELOPMENT AGENCY BOARD OF DIRECTORS, MOORPARK CALIFORNIA, RESCINDING RESOLUTION NO. 2003 -115 REGARDING AMENDING THE AGENCY BUDGET FOR THE PURCHASE OF PROPERTY AT 47 -51 WEST HIGH STREET WHEREAS, on May 7, 2003, the Moorpark Redevelopment Agency Board of Directors considered and adopted Resolution No. 2003- 115 amending the Agency budget for the purchase of property at 47 -51 West High Street, and; WHEREAS, staff has determined that the appropriation is no longer necessary as funds were already available from MRA Area 1- Increment and Other Funds. NOW, THEREFORE, THE MOORPARK REDEVELOPMENT AGENCY BOARD OF DIRECTORS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Agency Board of Directors does hereby rescind Resolution No. 2003 -115. SECTION 2. The Agency Secretary shall certify to the adoption of this Resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this day of , 2003. Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt Agency Secretary ITEM 5- •C. CITY iC F)400RPARK, CALTFOR.NTA Redevelop ment Agenev ?Meeting of��"2 ACTION- tr1� MOORPARK REDEVELOPMENT AGENTt- AGENDA REPORT' , h444&'C.- ' TO: The Honorable Chair and Board of Directors FROM: Hugh R. Riley, Assistant Executive D� to DATE: May 13, 2003, (Agency Meeting of May 21, 2003) SUBJECT: Consider Resolution Amending the Moorpark Redevelopment Agency FY 2002/2003 Budget to Provide ` for Professional Contractual Services Related to Demolition of Agency -owned Structures DISCUSSION: On February 19, 2003, the Moorpark Redevelopment Agency Board of Directors approved a contract with Rollins Consulting, Inc. for contract administration and project coordination services related to the demolition of certain Agency -owned structures. The tasks for the properties included are: 1. Demolition of dwelling and incidental structure at 661 Magnolia. $ 4,080 2. Demolition of vacant structures at 226 High Street. (Property formerly leased to JEMCO Plumbing. $ 4,930 3. Removal of above ground structures at 83 West High Street (Moorpark Mobile Home Park) $ 7,480 4. Preparation of aerial photography prints and negatives of the expanded Civic Center site following demolition activity to be used for planning purposes for the new City Hall. $ 1,475 It is necessary to amend the agency budget to provide for these professional services which total $17,965 and contingencies of an additional $2,035 for a total of $20,000. Moorpark Redevelopment Agency Agenda Report May 21, 2003 Page 2 STAFF RECOMMENDATION: 1) Approve Resolution 2003- amending the Moorpark Redevelopment Agency Budget. (Roll Call Vote Required) Attachment: Resolution 2003- 2 000030 RESOLUTION 2003- A RESOLUTION OF THE MOORPARK REDEVELOPMENT AGENCY BOARD OF DIRECTORS, MOORPARK, CALIFORNIA, AMENDING THE ADOPTED FY 02/03 MOORPARK REDEVELOPMENT AGENCY BUDGET TO PROVIDE FOR PROFESSIONAL CONTRACTUAL SERVICES WHEREAS, on June 5, 2002, the Moorpark Redevelopment Agency Board of Directors adopted the Moorpark Redevelopment Agency budget for Fiscal Year 2002/2003; and WHEREAS, the Moorpark Redevelopment Agency Board of Directors approved a Redevelopment Agency budget to be funded by Moorpark Redevelopment Tax Increment funds; and WHEREAS, on February 19, 2003, the Moorpark Redevelopment Agency Board of Directors approved a contract with Rollins Consulting, Inc. for contract administration and project coordination services related to the demolition of certain Agency -owned structures; and WHEREAS, the Moorpark Redevelopment Agency Board of Directors now wishes to amend the adopted budget to reflect the cost of said services. NOW, THEREFORE, THE MOORPARK REDEVELOPMENT AGENCY BOARD OF DIRECTORS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That a budget amendment in the amount of $20,000 in Agency funds, as described in Exhibit "A" attached hereto, is hereby approved. SECTION 2. The Agency Secretary shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this day of , 2003. Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt, Agency Secretary Attachment: Exhibit A: Budget Amendment Detail DIMMM Resolution No. 2003 - Page 2 EXHIBIT A BUDGET AMENDMENT DETAIL r Ullulily JUULC:CJ Funding Source Account Amount MRA Area 1- Increment & Other 2902 $20,000 Appropriations Current New Budget Budget Budget Unit Object Amount Change Amount 2902 - 2410 -0000 9102 $17,500 $20,000 $37,500 Approved as to form: