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HomeMy WebLinkAboutMonogram Residential Huntington Beach, LP - 2016-11-07Dept. ID FD16 009 Page 1 of 2 Meeting Date: 11/7/2016 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 11/7/2016 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: David A. Segura, Fire Chief SUBJECT: Approve and authorize execution of a Reimbursement Agreement with Monogram Residential Huntington Beach, LP for Fire and Safety Inspection Services for the Monogram Residential Project; and, authorize appropriation of funds Statement of Issue: The attached reimbursement agreement with Monogram Residential Huntington Beach, LP, for fire and safety inspection services was requested by the developer to provide expedited processing of the Monogram Residential Project and is submitted for City Council approval. An allocation of $128,700 is requested, which is cost -neutral since expenditures for these services will be reimbursed by Monogram Residential Huntington Beach, LP. Financial Impact: The recommended action is cost -neutral since the expenditures for fire inspection services for the Monogram Residential Project are fully reimbursable by the developer, Monogram Residential Huntington Beach, LP. Funding will be allocated on an incremental basis as needed and revenue will accrue to the Fire and Safety Inspection Services account (10000100.48410, subledger 10065201). The recommended action will also increase the Fire Department's professional services listing authority by a commensurate amount to ensure compliance with Administrative Regulation No. 228. Recommended Action: A) Approve and authorize the Mayor and the City Clerk to execute the "Reimbursement Agreement Between the City of Huntington Beach and Monogram Residential Huntington Beach Project Owner, LP c/o KNR HB Sponsor, LLC for Costs Incurred for Fire and Safety Inspection Services;" and, B) Approve an appropriation of $128,700 to the Fire Prevention business unit (10065201.69365) for these services. Alternative Action(s): Do not approve the agreement or appropriate the funding and direct staff accordingly. Analysis: Monogram Residential Huntington Beach, LP, has begun construction of the Monogram Residential Project, with 510 residential units, located in the Beach Edinger Corridor Specific Plan area. In order to expedite the project, the developer has requested that the Fire Department commit sufficient resources to provide fire and safety inspection services. These include a fire inspector Item 12. - 1 IAB -342- Dept. ID FD16 009 Page 2 of 2 Meeting Date: 11/7/2016 assigned to the project for approximately 15 hours per week over the next 18 months. To provide these services, it will be necessary for the City to hire a contract fire inspector. City fire inspectors are not readily available due to greatly increased development activity. To pay for the services, the City and Monogram Residential Huntington Beach, LP, will enter into a reimbursement agreement in the amount of $128,700. Bureau Veritas North America, Inc. and Jensen and Hughes, Inc. currently provide contract inspection services for the City, including the type of fire inspection services required for the Monogram Residential Project. One of these firms would be utilized for this project and are very well respected in the industry. City staff recommends that the City Council approve the reimbursement agreement with Monogram Residential Huntington Beach, LP, and appropriate $128,700 for the fire and safety inspection services. Environmental Status: None. Strategic Plan Goal: Enhance and maintain public safety. Attachment(s): 1. "Reimbursement Agreement Between the City of Huntington Beach and Monogram Residential Huntington Beach Project Owner, LP c/o KNR HB Sponsor, LLC for Costs Incurred for Fire and Safety Inspection Services" 11B -343- Item 12. - 2 REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND MONOGRAM RESIDENTIAL HUNTINGTON BEACH PROJECT OWNER, LP c/o KNR HB SPONSOR, LLC FOR COSTS INCURRED FOR FIRE AND SAFETY INSPECTION SERVICES THIS AGREEMENT ("Agreement') is made and entered into by and between the City of Huntington Beach, a municipal corporation of the state of California, hereafter referred to as "CITY," and Monogram Residential Huntington Beach Project Owner, LP c/o KNR HB Sponsor, LLC, a California corporation, hereinafter referred to as "DEVELOPER." WHEREAS, DEVELOPER is proposing to develop an area within the City of Huntington Beach known as Monogram Residential Project and DEVELOPER seeks fire and safety inspection services required for the Project; and DEVELOPER desires that all fire and safety inspection services be processed as soon as possible; and DEVELOPER is required to pay for the fire and safety inspection fees for which DEVELOPER shall receive fire and safety inspection services; and DEVELOPER desires to have the CITY commit sufficient resources to enable the expeditious delivery of fire and safety inspection services; and Pursuant to California Government Code Section 87103.6, DEVELOPER is allowed to make a payment to CITY to defray the estimated reasonable cost to process any application, approval or other action, NOW, THEREFORE, in consideration of the promises and agreements hereinafter made and exchanged, the parties agree as follows: DEVELOPER agrees to reimburse CITY for its fire and safety inspection services as follows: 1. PAYMENT A. On the first day of each third month, DEVELOPER shall pay to CITY an amount equal to the amount paid by CITY for fire and safety inspection services funded by this Agreement (the "Quarterly Payment"). The parties acknowledge that the payments will be used to pay the fire and safety inspection services funded by this Agreement. DEVELOPER' acknowledges that the amount referenced in 16-5413/142750/DO Page 1 of 6 this Agreement is the CITY's best estimate of the reasonable 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 estimated reasonable costs, DEVELOPER agrees to pay the actual cost within ten (10) days after receiving CITY's invoice for same. In the event the actual costs of Reimbursement Services are less than the estimated reasonable costs, CITY will refund the difference between the actual and estimated reasonable costs. B. The estimated cost to cover eighteen (18) months of fire and safety inspection services is One Hundred Twenty-eight Thousand and Seven Hundred Dollars ($128,700.00). C. A late payment fee of ten percent (10%) will be assessed if CITY receives any payment later than the thirtieth (30th) day after that payment is due but unpaid. In addition, one and one-half percent (1 1/2%) interest per month shall be added for each month the payment hereunder is due but unpaid. 2. STATEMENT OF INTENT The amounts reimbursed to CITY pursuant to this Agreement will help defray CITY's cost of the fire and safety inspection services requested by the DEVELOPER and required to process DEVELOPER's fire and safety inspection needs. CITY agrees to provide fire and safety inspection services, and to provide a part time on - site inspector for a continuous period of approximately eighteen (18) months, to be mutually established by the CITY and DEVELOPER based on the actual start date of building improvements and schedule of construction of DEVELOPER's project. Part time shall mean approximately fifteen (15) hours within a seven (7) day period. It is anticipated that the work day will consist of approximately five (5) hours between approximately 7 a.m. and 12 p.m. The schedule may vary as the need of the project requires. The exact working hours will be at the discretion of the CITY; however, the City agrees to provide the required fire and safety inspection services in a timely manner so as to meet the DEVELOPER's scheduling needs. Such part time fire and safety inspection services include multi -disciplinary fire and safety inspection services. In the event such inspector is not qualified to provide some the services, CITY may, in its sole discretion, provide an additional qualified inspector to assist the part time inspector in a timely manner on an as needed basis. 16-5413/142750/DO Page 2 of 6 EXCLUSIVE CONTROL BY CITY CITY will maintain exclusive control over the work described herein. Nothing in this Agreement: A. Shall be deemed to require CITY to approve any plan, proposal, suggestion, application or request submitted by DEVELOPER. B. Shall be deemed to limit, in any respect whatsoever, CITY's sole authority to direct and control the inspector(s) assigned to DEVELOPER's various development projects. C. 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. 5. TIME IS OF THE ESSENCE CITY agrees that time is of the essence for the performance of the work to be funded pursuant to this Agreement and therefore, thirty (30) days prior to each quarterly invoice. DEVELOPER shall submit a list of proposed activities to be performed by the CITY for approval by the Fire Department. 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. NOTICES Any notices, certificates or other communications hereunder shall be given either by personal delivery to DEVELOPER's agent 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 16-5413/142750/DO Page 3 of 6 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: Fire Marshal 2000 Main Street Huntington Beach, CA 92648 9. MODIFICATION TO DEVELOPER: Monogram Residential Huntington Beach Project Owner, LP c/o KNR HB Sponsor, LLC 7700 Irvine Center Drive, Ste. 800 Irvine, CA 92618 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. 16-5413/142750/DO Page 4 of 6 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. DEVELOPER shall not request legal services of the CITY and shall not be responsible for legal fees, if any, incurred by CITY in connection with this Agreement. 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. 17. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 16-5413/142750/DO Page 5 of 6 18. ENTIRETY This Agreement, and the attached exhibits, contains the entire agreement between the parties respecting the subject matter of this Agreement and supersedes 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 officers on 2016. DEVELOPER, CITY OF HUNTINGTON BEACH, a MONOGRAM RESIDENTIAL municipal corporation of the State of HUNTINGTON BEACH PROJECT OWNER, LP c% KNR HB SPONSOR, LLC By: Monogram Residential Huntington Beach Project GP, LLC By: KNR HB Sponsor LLC By: KNR HB Sponsor Parent LLC t<R- K� print name �"`- ^^ ber ITS: (circle one) Chairman/President/Vice President ND B prin name ITS: (circle one) Secretary/Chief Financial Officer/Asst. Secretary - Treasurer 16-5413/142750/DO Page 6 of 6 REVIEWED AND APPROVED AS TO CONT T Ci ,&4anager APPROVED Attorney b P W 31 City of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk Robin Estanislau, City Clerk November 15, 2016 Monogram Residential Huntington Beach Project Owner, LP c/o KNR HB Sponsor LLC 7700 Irvine Center Drive, Ste. 800 Irvine CA 92618 To Whom It May Concern: Enclosed is a copy of the fully executed "Reimbursement Agreement Between the City of Huntington Beach and Monogram Residential Huntington Beach Project Owner, LP c/o KNR HB Sponsor, LLC for costs incurred for Fire and Safety Inspection Services." Sincerely, Robin Estanislau, CIVIC City Clerk RE:pe Enclosure Sister Cities: Anjo, Japan ♦ Waitakere, New Zealand