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HomeMy WebLinkAboutFOUNTAIN GLEN PROPERTIES, LLC - 2002-10-21CITY OF HUNTINGTON BEACH 2000 MAIN STREET --CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DATE: �cTd TO: Fo1,,f4i,17 G/Fh fDeo,-;,,ho_s GLc ATTENTION: Name `f'ac� DEPARTMENT: Street /U �oo.•i- ,��G�L, n4 9a66a REGARDING: City, State, Zi See Attached Action Agenda Item Date of Approval io i o Z Enclosed For Your Records.Is: An Executed Copy Of The Above Referenced Agenda Item. Remarks: Connie Brockway City Clerk Attachments: Action Agenda Page Agreement x Bonds Insurance RCA Deed Other CC: C/rLtr7/71P/��. ..r rNc/zv� ✓ V.: Name Departmg t RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Name Name Department Department RCA Agreement Insurance RCA Insurance (Telephone: 714-5 36-5227 ) Council/Agency Meeting Held: 16 Deferred/Continued to: %pproved O Conditionally Approved O Denied Council Meeting Date: October 21, 2002 City Clerk's Sianatul�f Department ID Number: BD2002-8 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTIONCD a SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: RAY SILVER, City Administrator RAI PREPARED BY: Ross Cranmer, Building & Safety Director SUBJECT: APPROVE REIMBURSEMENT AGREEMENT WITH FOUNTAIN=� GLEN PROPERTIES, LLC FOR PROFESSIONAL INSPECTION SERVICES IN CONNECTION WITH THE FOUNTAIN AT SEACLIFF Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Transmitted for City Council's consideration is a Reimbursement Agreement between the City and Fountain Glen Properties, LLC. The agreement will offset the cost of providing full time inspection services for six (6) months at the Fountain's Apartment project at Seacliff. Funding Source: General Fund unappropriated fund balance. An equal amount of revenue will be deposited into the General Fund; therefore, the net effect to the fund balance would be zero. Recommended Action: Motion to: 1. "Approve the Reimbursement Agreement for inspection staff services as prepared by the City Attorney, between the City and Fountain Glen Properties, LLC and authorize the Mayor and City Clerk to sign." 2. "Appropriate thirty-five thousand dollars ($35,000) from the General Fund Balance into the Building & Safety operating account for contract services (10055201.69365) in connection with the Reimbursement Agreement between the City and Fountain Glen Properties, LLC to be utilized by the Department of Building & Safety for full time inspection services." RE1UEST FOR COUNCIL ACTIOR MEETING DATE: October 21, 2002 DEPARTMENT ID NUMBER: BD2002-8 Alternative Action(s): The City Council may elect not to approve the Reimbursement Agreement between the City and Fountain Glen Properties, LLC. As a consequence, the City will not be able to provide the proposed expanded services in order. to meet the developer's construction schedule. Analysis: Fountain Glen Properties, LLC has started the construction of the Fountain's Apartment project. In order to help expedite the project, the developer has requested that the Building and Safety Department commit sufficient resources to provide expanded inspection services. The expanded services would provide a full time Building Inspector assigned to the project for up to six (6) months. In order to provide for the expanded inspection services, it will be necessary for the City to hire a contract inspector. To pay for this service, Fountain Glen Properties, LLC has agreed to enter into a $35,000 Reimbursement Agreement with the City in order to finance the delivery of expanded inspection services. Fountain Glen Properties, LLC has agreed to deposit, within ten (10) days following adoption of this agreement by the City Council, funds in the amount of Thirty -Five Thousand Dollars ($35,000). Upon deposit of. said funds into the City's General Fund, the funds will be appropriated to the Building & Safety Department's operating account number 10055201.69365. Staff recommends the City Council approve the Reimbursement Agreement and the appropriation of funds to the Building and Safety Department to finance the expanded services. COUNCIL POLICY REGARDING REQUESTS FOR AN APPROPRIATION OF FUNDS: As adopted by the City Council in March 1998, all requests for appropriation of funds must meet one of the following criteria; 1) the request is for an unanticipated emergency, 2) the request is required to implement labor negotiations, or 3) the request will be offset by related new revenues. The new appropriation being requested will be offset by related new revenues from the Reimbursement Agreement between the City and Fountain Glen Properties, LLC. Environmental Status: N/A Attachment(s): RCA Author: Richards BD2002-8 Reimb. Agreemt. Fountain Glen -2- 10/9/20021:37 PM • ATTACHMENT'l REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND FOUNTAIN GLEN PROPERTIES, LLC FOR COSTS INCURRED FOR PROFESSIONAL INSPECTION SERVICES THIS AGREEMENT ("Agreement") is made and entered into this al S� day of D C74,)4j- 2002, by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and FOUNTAIN GLEN PROPERTIES, LLC, a California limited liability company, hereinafter referred to as "DEVELOPER." WHEREAS, DEVELOPER is proposing to develop an area within the City of Huntington Beach known as The Fountains; and DEVELOPER is required to submit applications to CITY for inspection approval; and DEVELOPER desires to have CITY commit sufficient resources to expand the delivery of inspection services above and beyond the normal services provided by CITY for its normal inspection fees. NOW, THEREFORE, in consideration of the promises and agreements hereinafter made and exchanged, the parties agree as follows: 1. PAYMENT follows: DEVELOPER agrees to reimburse CITY for its expanded inspection services as A. DEVELOPER will pay to CITY the amount of Thirty -Five Thousand Dollars ($35,000.00) within ten (10) days following the approval of this Agreement by CITY. DEVELOPER acknowledges that the amount referenced in this Agreement is the CITY's best estimate of the costs for the services described herein, and that the actual cost of said services may be higher. In the event that the actual cost of said services exceeds the 02agree/fountain glen/10/9/02 I estimated costs, DEVELOPER may authorize additional fees or the inspection services will return to the standard call in. In the event the actual costs of said services are less than the estimated costs, CITY will refund the difference between the actual and estimated costs. 2. STATEMENT OF INTENT AND WORK TO BE PERFORMED The amounts reimbursed to CITY pursuant to this Agreement will help defray CITY's cost of the expanded professional inspection services required for DEVELOPER's project. CITY agrees to provide a full time on -site inspector for a continuous period of six (6) months. Such full time inspector shall be qualified to provide multi -disciplinary inspection services associated with the DEVELOPER's project including Building, Mechanical, Electrical and Plumbing inspections. In the event such inspector is not qualified to provide some of the services, CITY may in its sole discretion, provide an additional qualified inspector to assist the full time inspector in a timely manner on an "as needed" basis. 3. EXCLUSIVE CONTROL BY CITY CITY will maintain exclusive control over the work described herein. Nothing in this Agreement: A. Shall be deemed to limit, in any respect whatsoever, CITY's sole authority to direct and control the inspector assigned to DEVELOPER's project. B. Shall be deemed to impose any liability on CITY different from any liability as may otherwise be established by law. 4. CITY EMPLOYEES AND OFFICIALS DEVELOPER shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any direct financial interest in this Agreement. 02agree/fountain glen/10/9/02 2 5. TIME IS OF THE ESSENCE CITY and DEVELOPER agree that time is of the essence for the work to be performed pursuant to this Agreement. 6. TERMINATION OF. AGREEMENT Either party may terminate this Agreement at any time with or without cause, upon ten (10) days prior written notice to the other party. DEVELOPER shall be responsible for all costs incurred prior to termination, including any and all costs incurred after notice of termination has been given. 7. TERM This Agreement -shall be effective on the date of its approval by the City Council of CITY: This Agreement shall expire when terminated as provided herein. 8. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to DEVELOPER or to CITY as the situation shall warrant, or by enclosing the same in a -sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below; provided that CITY and DEVELOPER, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications will be sent: TO CITY: City of Huntington Beach ATTN: Director of Building & Safety 2000 Main Street Huntington Beach, CA 92648 TO DEVELOPER: Fountain Glen Properties, LLC 4220 Von Karman Avenue; 2nd Floor Newport Beach, CA 92660 02agree/fountain glen/10/9/02 3 • 11 9. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 10. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or. describe, or construe the intent of the parties or affect the construction. or interpretation of any provision of this Agreement. 11. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this . Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall. be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then ' the latter shall prevail; and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 02agree/fountain glen/10/9/02 4 12. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery,.be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 13. IMMIGRATION DEVELOPER shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 14. LEGAL SERVICES SUBCONTRACTING PROHIBITED DEVELOPER and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder.. DEVELOPER understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by DEVELOPER. 15. ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees. 16. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 02agree/fountain glen/10/9/02 5 17. ENTIRETY This Agreement, and the attached exhibits, contains the entire agreement between the parties respecting the subject matter of this Agreement and supercedes all prior understanding and agreements whether oral or in writing between the parties respecting the subject matter hereof. - IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. FOUNTAIN GLEN PROPERTIES, LLC, a Limited Liability Company print name ITS: (circle one Chairman/Presiden ice President AND By: _ / E print name ITS: (circle one Secretar hief Financial Officer sst. Secretary — Treasurer REVIEWED AND APPROVED: City A ministrator CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor ATTEST: APPROVED AS TO FORM: , it pity Attorney /a INITIATED AND APPROVED: Director of Building & Safety r0 - 9-oz 02agree/fountain glen/10/9/02 . 6 E i ATTACHMENT 2 i, CITY.OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION To: Ray Silver, City Administrator From: Clay Martin, Director of Administrative Services Subject: FIS 2003-01 Approve a Reimbursement Agreement with Fountain Glen Properties LLC for Professional Inspection Services in Connection with the Fountain at Seacliff Date: October 9, 2002 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Approve a Reimbursement Agreement with Fountain Glen Properties LLC for Professional Inspection Services in Connection with the Fountain at Seacliff'. If the City Council approves this request (total appropriation $35,000), there will be no effect on any unappropriated, undesignated fund balance since the new appropriation is funded by a reimbursement agreement. Clay Marti Director6f Administrative Services