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HomeMy WebLinkAboutHUNTINGTON CENTER ASSOCIATES LLC - 2004-09-070, CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK JOAN L. FLYNN CITY CLERK LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTO\ BEACH DATE: 911010y Ta.-�c 77A)67?3 tJ7 T?SS�!' ATTENTION: Z?2&LZ-Z�LJ Remarks: jjr4 City Clerk Attachments: Action Agenda Page Agreementy� Bonds Insurance RCA Deed Other CC: t�LJ6 '`•i�!E!7 Narhe Departrnent RCA Agreement Insurance Other Name Department RCA Name Department Name Department Name RCA Agreement Insurance Agreement Insurance RCA Agreement Insurance Department RCA Insurance Other Other Other g:/followu p/l etters/coverltr.doc ITalaphone: 714-536-62271 (16) • September 7, 2004 - CounAgency Agenda - Page 16 E-12. (City Council) Direct Staff to Prepare Mayor's Letter to the State Department of Parks and Recreation Exercising City's Option to Extend the Bolsa Chica State Beach Operating Agreement between the City and the State of California for 20 Years (November 30, 2006 to November 30, 2026) (120.90) — Approve exercising the city's option granted in the 1986 Bolsa Chica State Beach Operating Agreement between the city and the State of California to extend the term for a period of twenty years from November 30, 2006 to November 20, 2026, and authorize staff to prepare a letter for the Mayor's signature to communicate the option to the State Department of Parks and Recreation. Submitted by the Community Services Director. Funding Source: Not applicable. Approved 5-1 (Cook out of room) E-13. (City Council) Approve a Reimbursement Agreement between the City and Huntington Center Associates, LLC for Professional Building Inspection Services in Connection with the Bella Terra Project — Authorize Appropriation of Funds (600.10) - 1. Approve the Reimbursement Agreement between the City of Huntington Beach and Huntington Center Associates, LLC and authorize the Mayor and City Clerk to sign; and 2. Appropriate Ninety Thousand Dollars ($90,000) to Building & Safety Department operating account number 10055201.69365 in connection with the Reimbursement Agreement between the City and Huntington Center Associates, LLC; and 3. Authorize the acceptance of two payments of $45,000.00 on or before October 1, 2004 and February 1, 2005 from Huntington Center Associates, LLC for building inspection services. Submitted by the Building and Safety Director. Funding Source: The proposed Agreement allows the developer to pay for expanded services by depositing funds totaling $90,000. Two payments of $45,000 each will be made on or before October 1, 2004, and February 1, 2005. Approved 5-1 (Cook out of room) Council/Agency Meeting Held: Deferred/Continued to: Approved ❑ conditionally Approved ❑ Denied y lerkX Sign t re Council Meeting Date: September 7, 2004 Departme Number: BD2004-4 MTY OF I-I11NTINrTOM RFArH Se-I&Si v REQUEST FOR CITY COUNCIL ACTION Cr- SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL EMBERS UJ - SUBMITTED BY: PENELOPE C"RETRAFT, CITY -ADMINISTRATOR PREPARED BY: ROSS CRANMER, BUILDING & SAFETY DIRECTOR� SUBJECT: APPROVE A REIMBURSEMENT AGREEMENT WITH HUNTINGTON CENTER ASSOCIATES, LLC FOR PROFESSIONAL INSPECTION SERVICES IN CONNECTION WITH THE BELLA TERRA PROJECT 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 Huntington Center Associates, LLC. The reimbursement agreement will offset the cost of providing expanded inspection services for the Bella Terra project. Funding Source: The proposed Agreement allows the developer to pay for expanded services by depositing funds totaling $90,000. Two payments of $45,000 each will be made on or before October 1, 2004, and February 1, 2005. Recommended Action: Motion to: 1. "Approve the Reimbursement Agreement, as prepared by the City Attorney, between the City and Huntington Center Associates, LLC and authorize the Mayor and City Clerk to sign." 2. "Appropriate Ninety Thousand Dollars ($90,000) to Building & Safety Department operating account number 10055201.69365 in connection with the Reimbursement Agreement between the City and Huntington Center Associates, LLC." 3. "Authorize the acceptance of two payments of $45,000 on or before October 1, 2004 and February 1, 2005 from Huntington Center Associates, LLC for building inspection services." • U REQUEST FOR ACTION MEETING DATE: September 7, 2004 DEPARTMENT ID NUMBER:BD2004-4 Alternative Action(s): The City Council may make the following alternative motion (s): 1. "Deny the Reimbursement Agreement and appropriation to the Building & Safety Department operating budget." 2. "Continue the item and direct staff accordingly." Analysis: Huntington Center Associates, LLC has begun construction of the Bella Terra Mall 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 are to include a full-time Building Inspector assigned to the project for up to nine months. In order to provide for the expanded services, it will be necessary for the City to hire a contract inspector. To pay for these services, the City and Huntington Center Associates, LLC will enter into a Reimbursement Agreement in the amount of $90,000. The payments have been divided into two equal payments of $45,000, the first due on or before October .1, 2004, and followed by February 1,:2005. If the Reimbursement Agreement and budget appropriation to the Building & Safety Department are not approved, the City will not be able to provide the proposed expanded services in order to meet the developer's construction schedule. 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.. This requests meets criteria number 3. The new appropriations being requested will be offset by related new revenues from the Reimbursement Agreement between the City and Huntington Center Associates, LLC. Environmental Status: N/A GABuilding Admin\RCXS\2004\BD2004-4 ReimbursementAgr Bella Terra.dot -2- 8/3012004 4:46 PM • REQUEST FOR ACTION MEETING DATE: September 7, 2004 DEPARTMENT ID NUMBER:BD2004-4 Attachment(s)• G:\Building Admin\RCXS\2004\BD2004-4 ReimbursementAgr Bella Terra.dot -3- 8/30/2004 4:44 PM ATTACHMENT 1 REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND HUNTINGTON CENTER ASSOCIATES, LLC THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and HUNTINGTON CENTER ASSOCIATES, LLC, a Delaware corporation hereinafter referred to as "DEVELOPER." and WHEREAS, DEVELOPER is developing an area within the City of Huntington Beach; DEVELOPER is required to submit to City inspections and obtain City approvals; and DEVELOPER is required to pay normal inspection fees, for which Developer shall receive normal building inspection services; and DEVELOPER desires to have CITY commit sufficient resources to enable the expeditious delivery of inspection services; and Pursuant to California Government Code Section 87103.6, DEVELOPER is allowed to defray the cost of all development approvals by reimbursing CITY for such costs, NOW, THEREFORE, in consideration of the promises and agreements hereinafter made and exchanged, the parties agree as follows: PAYMENT DEVELOPER agrees to reimburse CITY for its expeditious delivery of professional building inspection services in the total amount of Ninety Thousand Dollars ($90,000), which represents the estimated cost of such expeditious delivery of professional services. Developer shall pay to City two payments. The first payment shall be for Forty Five 04agree/JH Snyder/8/23/04 • Thousand Dollars ($45,000) made on or before October 1, 2004; the second payment for Forty Five Thousand Dollars ($45,000) shall be made on or before February 1, 2005. 2. STATEMENT OF WORK TO BE PERFORMED The amounts reimbursed to the City pursuant to this agreement will help defray the cost of delivery of expedited professional inspection services required for the Developer's project. CITY agrees to provide expedited delivery of the professional Building & Safety Inspection Services; and to provide a full time on -site inspector for a continuous period of approximately nine (9) 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. Full time shall mean forty (40) hours within a seven (7) day period. It is anticipated that generally the work day will consist of eight (8) hours between 7:00 a.m. and 6:00 p.m., however the schedule may vary as the needs of the Project dictate. The exact working hours will be at the discretion of the City. 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 require CITY to approve any plan, proposal, suggestion, application or request submitted by DEVELOPER. 04agree/JH Snyder/8/23/04 2 9 B. Shall be deemed to limit, in any respect whatsoever, CITY's sole authority to direct and control the inspectors assigned to DEVELOPER's 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. 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. 6. TERM This Agreement shall be effective on the date of its approval by the City Council of CITY. The term of this Agreement is fourteen (14) months, unless extended by mutual Agreement of the parties in writing. 7. 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 and DEVELOPER, 04agree/JH Snyder/8/23/04 0 0 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 8. MODIFICATION TO DEVELOPER: Mr. Milton Swimmer Huntington Center Associates, LLC c/o J. H. Snyder Company 5757 Wilshire Boulevard Penthouse 30 Los Angeles, CA 90036 No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 9. 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. 10. 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 04agree/JH Snyder/8/23/04 4 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. 11. 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. 12. 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. 13. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 04agree/JH Snyder/8/23/04 14. ENTIRETY This document sets forth the entire Agreement between the parties concerning the subject matter hereof. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on �CjQj�irJ-i� �, 200. HUNTINGTON CENTER ASSOCIATES, LLC, a Delaware limited liability company R-M I:3 M HUNTINGTON MANAGEMENT ENT., LLC, a Delaware limited liability company, Manager, BMLF/HUNTINGTON, LLC., a Delaware limited company, Manager SEE ATTACHED SIGNATURE Bryan Ezralow, Trustee, Manager CITY OF HUNTINGTON BEACH, a municipal corporation.of the State of California Mayor City Clerk y / REVIEWED AND APPROVED: VED AS TO FORM: City A mey Ci y Administrator INITIATED AND APPROVED: —TL— C Director of Building & Safety 04agree/JH Snyder/8/23/04 0 HUNTINGTION CENTER ASSOICATES, LLC Reimbursement Agreement with City of Huntington Beach August 25, 2004 Huntington Center Associates, LLC a Delaware limited liability company By: Huntington Management Ent., LLC A Delaware limited liability company, Manager By: BMLF/Huntington, LLC A Delaw limited liabil' company, Manager B Bryan Ezralow as triustee of the Bryan Ezralow 1994 Trust, Manager ATTACHMENT 2 CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Penelope Culbreth-Graft, City Administrator From: Clay Martin, Director of Administrative Services Subject: FIS 2004 — 27 Approve a Reimbursement Agreement with Huntington Center Associates, LLC for Professional Inspection Services in Connection with the Bella Terra Project Date: July 22, 2004 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for " Approve a Reimbursement Agreement with Huntington Center Associates, LLC in Connection with the Bella Terra Project' If the City Council approves this action (total appropriation $90,000), there will be no effect on the General Fund balance since the proposed expendi are is offset by new revenue. Clay Martiy v Director of Administrative Services RCA ROUTING SHEET INITIATING DEPARTMENT: Building & Safety SUBJECT: Reimbursement Agreement COUNCIL MEETING DATE: September 7, 2004 RCA ATTACHMENTS STAIVS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable Attached Not Not Applicable ❑ (Signed in full by the City Attorne Subleases, Third Party Agreements, etc. er �f� Attached El Not Applicable (Approved as to form b Cityrn Attoe Certificates of Insurance (Approved b the Cil ( Pp Y Attome Y Y) Attached Not Applicable Fiscal Impact Statement (Unbud et, over $5,000) Attached Not Applicable Bonds (If applicable) Attached Not Applicable El Staff Report (If applicable) AttachedNot Applicable Commission, Board or Committee Re ort If p ( �Pp applicable) Attaches Not Applicable Findings/Conditions for Approval and/or Denial Attached Not Applicable I EXPLANATION FOR MISSING ATTACHMENTS I 1 REVIEWED i RETURNED 1 FORWAMM I Administrative Staff Assistant City Administrator (Initial City Administrator (Initial) Citv Clerk I EXPLANATION FOR RETURN OF ITEM: aid` /lJi A, i�17 — lr�i-r t.�,,,, "t�v�►-4,9/ . L 1 ,: n ( n . 4, - - - 912? 1 RCA Author: U Developer was out of town on vacation and did not return until today. The Agreement was signed on 8/26/04 and sent by messenger to City Hall. EXPLANATION (Why is this RCA necessary to this agenda?): The Agreement benefits the City by providing $90,000 to hire a full time inspector. A delay will result in inspection service that will not meet all the developer needs. CONSEQUENCES How shall delay of this RCA adversely impact the City?): The Agreement for expanded inspection services is for the Bella Terra mall project. The expanded services will allow the developer to meet his construction schedule, which will result in increased tax revenue to the City.