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
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Attachments: Action Agenda Page Agreementy� Bonds Insurance
RCA Deed Other
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Department RCA
Name Department
Name Department
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Agreement Insurance
Agreement Insurance
RCA Agreement Insurance
Department RCA
Insurance
Other
Other
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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
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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.