HomeMy WebLinkAbout2006 01-24 CC AGENDA PKTliiirearagio
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Community Development
Commission of National City
AGENDA
REGULAR MEETING OF THE
COMMUNITY DEVELOPMENT COMMISSION
OF NATIONAL CITY
CITY COUNCIL CHAMBERS, CIVIC CENTER
1243 NATIONAL CITY BOULEVARD
January 24, 2006 at 6:00 p.m.
OPEN TO THE PUBLIC
Please complete a REQUEST TO SPEAK form prior to the commencement of the meeting, and submit it
to the City Clerk.
CITY COUNCIL MEMBERS ARE ALSO COMMISSIONERS OF THE COMMUNITY DEVELOPMENT COMMISSION (CDC) fOR
THE CITY. THE CDC IS INVOLVED IN THE ADMINISTRATION OF HOUSING, REDEVELOPMENT, NUTRITION, AND
ECONOMIC DEVELOPMENT PROGRAMS. FUNDING FOR THE CDC COMES MAINLY FROM TAX INCREMENT PROCEEDS
AND GRANTS FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD). THE PUBLIC IS WELCOME AT
ALL MEETINGS AND MAY CALL (619) 336-4250 IF THERE ARE ANY QUESTIONS REGARDING THIS AGENDA OR THE
COMMUNITY DEVELOPMENT COMMISSION.
UPON REQUEST, THIS AGENDA CAN BE MADE AVAILABLE IN APPROPRIATE ALTERNATIVE FORMATS TO PERSONS
WITH A DISABILITY IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT. PLEASE CONTACT THE CITY
CLERK'S OFFICE AT (619) 336-4228, TO REQUEST A DISABILITY -RELATED MODIFICATION OR ACCOMMODATION.
NOTIFICATION 24 HOURS PRIOR TO THE MEETING WILL ENABLE THE CITY TO MAKE REASONABLE ARRANGEMENTS TO
ENSURE ACCESSIBILITY TO THIS MEETING.
COPIES OF COMMUNITY DEVELOPMENT COMMISSION MEETING AGENDAS AND MINUTES MAY BE OBTAINED
THROUGH OUR WEBSITE AT: www.ci.national-citv.ca.us
APPROVAL OF MINUTES Regular Meeting of December 13, 2110E
PUBLIC ORAL COMMUNICATIONS (three -minute time limit)
CONSENT:
1. RATIFICATIONS: EXPENDITURES FOR THE PERIOD OF 12/22/05
THROUGH 01/12/06 OF$815,149.00
2. REPORT: CASH AND INVESTMENT REPORT FOR THE QUARTER ENDED
DECEMBER 31, 2005
3. RESOLUTION NO. 2006-04: APPROVING AN AGREEMENT WITH SCS
ENGINEERS FOR A PHASE II ENVIRONMENTAL INVESTIGATION OF THE
PARK VILLAGE SITE (APNs 555-113-04, 05, 08, 11, 12, 13) AND
AUTHORIZING THE CHAIRMAN TO EXECUTE THE AGREEMENT
i
RESOLUTION. NO. 2006-05: APPROVING A COOPERATIVE REMEDIATION
AGREEMENT WITH THE BEAUCHAMP FAMILY TRUST FOR
REIMBURSEMENT OF EXPENSES FOR A PHASE II ENVIRONMENTAL
INVESTIGATION, PREPARATION OF A PROPERTY MITIGATION PLAN, AND
MANAGEMENT OF ENVIRONMENTAL REMEDIATION FOR THE PARK
VILLAGE SITE (APNS 555-113-04, 05, 08, 11, 12, 13) AND AUTHORIZING THE
CHAIRMAN TO EXECUTE THE AGREEMENT
NON -CONSENT:
4. REPORT: UPDATE ON SELECTION PROCESS FOR CLEVELAND AVENUE
INDUSTRIAL PROJECT
5. RESOLUTION NO. 2006-06: APPROVING A SETTLEMENT AGREEMENT BY
AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION AND THE
BEAUCHAMP FAMILY TRUST AND AUTHORIZING THE CHAIRMAN TO
EXECUTE THE AGREEMENT
6. RESOLUTION NO. 2006-07: APPROVING THE HEALTH AND SAFETY CODE
SECTION 33433 REPORT AND REUSE ANALYSIS FOR THE PARK VILLAGE
PROJECT OWNER PARTICIPATION AGREEMENT
7. RESOLUTION NO. 2005-08: APPROVING THE INSTALLATION OF FIVE (5)
STREET LIGHTS ON ETA STREET IN NATIONAL CITY BY SAN DIEGO GAS
AND ELECTRIC
8. RESOLUTION NO. 2005-09: CONSOLIDATING THE ADMINISTRATION OF
THE CDC WITH THE ADMINISTRATION OF THE CITY OF NATIONAL CITY,
APPOINTING THE CITY MANAGER TO THE POSITION OF EXECUTIVE
DIRECTOR OF THE CDC, AND DIRECTING STAFF REGARDING FURTHER
STEPS TO EFFECTUATE THE CONSOLIDATION
CLOSED SESSION: Conference with Legal Counsel — Anticipated Litigation
Initiation of Litigation Pursuant to Government Code Section
54956.9(c)
(One Potential Case)
CDC ATTORNEY:
EXECUTIVE DIRECTOR:
CHAIRMAN/COMMISSIONERS:
ADJOURNMENT: To the regular meeting of the CDC on February 14, 2006 at
6:00 p.m. in the Council Chambers at City Hall
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
January 24, 2006
AGENDA ITEM NO. 1
TO: CHAIRMAN AND BOARD MEMBERS
(1)(`-'
FROM: BENJAMIN MARTINEZ, EXECUTIVE DIRECTOR
VIA: JEANETTE LAD , DEPUTY DIRECTOR OF FINANCE AND
ADMINISTRATIO
SUBJECT: RATIFICATIONS: EXPENDITURES FOR THE PERIOD OF 12/22/05
THROUGH 01/12/06 OF $815,149.00
Recommendation:
Community Development Commission staff recommends that the Community
Development Commission Board:
RATIFY EXPENSES.
Fiscal Impact:
Total expenditures for the period of 12/22/05 THROUGH 01/12/06 amount to
$815,149.00.
Environmental Impact:
Not Applicable.
Background:
See attached report.
Community Development Commission
January 24. 2006
Agenda Item No. 1
Page 1 of 1
Payee
CDC
BATIZ.COM
CHRISTENSEN SCHWERDTFEGER
CITY OF NATIONAL CITY
CORPORATE EXPRESS INC
DESROCHERS. PAUL
FIERRO CONSTRUCTION
FIRST BANKCARD CENTER
FIRST BANKCARD CENTER
GE CAPITAL
GRAPHIC SOLUTIONS
GUEVARA, PHIPPARD & JAMES
LASER SAVER, INC.
LAW OFFICE OF DON DETISCH
OPPER & VARCO LLP
PETTY CASH - CDC
SECURE PROTECTIVE SERVICES
STUTZ, ARTIANO, SHINOFF
THE STAR NEWS
VERONICA TAM & ASSOCIATES
CDBG
TRAUMA INTERVENTION PROGRAM
NUTRITION
CALIFORNIA BAKING CO.
CALIFORNIA BAKING CO.
CENTRAL MEAT & PROVISION
CENTRAL MEAT & PROVISION
JOSEPH WEBB FOODS
MCGUIRE DISTRIBUTION
MCGUIRE DISTRIBUTION
OFFICE SUPPLIES PLUS
PADRE JANITORIAL SUPPLIES, INC
PADRE JANITORIAL SUPPLIES. INC,
REED'S RESTAURANT EQUIP. SVC.
SAN DIEGO GAS & ELECTRIC
SBC/MCI
SYSCO SAN DIEGO
SYSCO SAN DIEGO
THE COOLING STORE
HOUSING ASSISTANCE PAYMENTS
AY►ISI'1�1�
PAYROLL
FOR MEETING OF JANUARY 17, 2006
RATIFICATION OF EXPENDITURES
FOR PERIOD: 12/22/05 - 01/12/06
Description
P
WEBSITE DEVELOPMENT
PROFESSIONAL SERVICES -PARK VILLAS
APPLICATION FEES FOR COPPER HII.1 S
CDC OFFICE SUPPLIES
RETIREMENT BENEFIT JUL-DEC 2005
PROPERTY MAINTENANCE
NUTRITION ADDITIONAL INSURANCE COVERAGE
MISC. CARD CHARGES
RENTAL FEES
SERVICES FOR OCT 2005
PROFESSIONAL SERVICES THROUGH 11/30/05
PRINTER REPAIR- LABOR
LEGAL SERVICES-MISC MATTERS
PROFESSIONAL SERVICES -GENERAL
PETTY CASH REPLENISHMENT
SECURITY SERVICES FOR 12/01-.12/15/05
PROFESSIONAL SERVICES THROUGH 9/30/05
PUBLICATION-NC23741 DSP-200
IDIS SERVICES-OCTOBER 2005
SUBTOTAL • CDC:
OCTOBER-DECEMBER2005
SUBTOTAL - CDBG:
FOOD -NUTRITION CENTER
FOOD -NUTRITION CENTER
FOOD -NUTRITION CENTER
FOOD -NUTRITION CENTER
FOOD/CONS-NUTRITION CENTER
FOOD -NUTRITION CENTER
FOOD -NUTRITION CENTER
OFFICE SUPPLIES -NUTRITION CENTER
JANITORIAL SUPPLIES -NUTRITION CENTER
SUPPLIES -NUTRITION CENTER
EQUIP REPAIRS -NUTRITION CENTER
UTILITY CHARGES-1415 D AVE 11/16/05 - 12/16/05
FAX BILL -NUTRITION CENTER
FOOD/CONS-NUTRITION CENTER
FOOD/CONS-NUTRITION CENTER
HOTSHOT REPAIR -NUTRITION CENTER
SUBTOTAL • NUTRITION:
TOTAL -GENERAL FUND:
DEC. 2005 MANUAL PMTS & JANUARY 2006 HAPS
TOTAL - SECTION 8:
PPE 12/31/05
TOTAL - ADMINISTRATIVE REVOLVING FUND:
Chk No Amount
15604 10,503.00
15607 2,135.00
15608 561.00
15625 120.63
15609 660.00
15610 2,753.04
15611 61.24
15611 36.75
15626 228.60
15612 3,555.91
15627 495.00
15628 117.61
15614 1,143.80
15616 5,557:68
15632 151.66
15619 5,364.00
15635 869.50
15621 571.42
15622 2,565.00
37,447.84...
15638 8,000.00
8,000.00
15605 314.60
15623 240.40
15606 1,330.81
15624 1.655.73
15613 2,609.72
15615 '279.75
15629 503.30
15630 166.84
13617 488.82
15631 1,296.37
15633 392.31
15634 1,807.88
15618 65.12
15620 2,046.26
15636 2.366.86
15637 846.93
$16,411.70
$61.859.54
$642,943.90
$642,943.90
S 110,345.56
$110,345.56
TOTAL OF ALL FUNDS:
$815,149.00
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
January 24, 2006
AGENDA ITEM NO.2
TO: CHAIRMAN AND BOARD MEMBERS
FROM: BENJAMIN MARTINEZ, EXECUTIVE DIRECTOR
VIA: JEANETTE LA O,j�DEPUTY DIRECTOR OF FINANCE AND
A D M I N I STR ATI O �N�
SUBJECT: REPORT: CASH AND INVESTMENT REPORT FOR THE QUARTER
ENDED DECEMBER 31, 2005
Recommendation:
Community Development Commission staff recommends that the Community
Development Commission Board:
ACCEPT AND FILE the quarterly report; and,
DIRECT STAFF TO SEND the second quarter report to the California Debt and
Advisory Committee as required by California Government Code Section 53646.
Fiscal Impact:
None.
Environmental:
CEQA is not applicable.
Background:
California law requires that Community Development Commission staff submit an
investment report to the Community Development Commission Chairman and
Commissioners within thirty {30) days following the end of the quarter that consists of
the following information:
Community Development Commission Agenda Item No. 2
January 24, 2006 Page 1 of 2
➢ Type of investment ordescription
• Issuers {bank or institution)
➢ Dollar amount
➢ Interest rate
➢ Current market valuation as of the date of the report
➢ The date of maturity
In addition, revisions to the California Government Code Section 53646 require that
copies of the second and fourth quarter reports be submitted to the California Debt and
Advisory Commission within sixty (60) days after the close of the second and fourth
quarters of each calendar year.
The source of the valuation of each investment must be reported and a statement
indicating the agency's ability, or lack thereof, to meet the next six (6) months cash flow
requirements is required.
The source of market valuations has been quoted from documents received from the
bank or institution that is the issuer of each of the investments. If staff did not receive
this information from the bank or institution, market value has been listed as equal to the
carrying amount.
The Community Development Commission invests most of its money in Negotiable
Certificates of Deposit (NCD). Other investments are held with the California
Treasurer's Local Agency Investment Fund (LAW) and Federal Home Loan Bank
investments. Funds have remained in Certificates of Deposit and Wells Fargo Bank to
meet Community Development Commission's cash flow objectives. The investment of
debt service reserves on deposit with fiscal agents is controlled by the designated fiscal
agent.
On an overall basis, appropriate funding is available to meet the cash flow requirements
for the next six (6) months.
With this, Community Development Commission staff recommends that these reports
be accepted and filed and that the quarter report ended December 31, 2005 be mailed
to the California Debt and Advisory Committee.
ATTACHMENTS:
EXHIBIT 1 - CDC Investment Inventory with Market Values as of
December 31, 2005
Community Development Commission Agenda item No. 2
January 24, 2006 Page 2 of 2
COMMUNITY DEVELOPMENT CC '¶SSION OF NATIONAL CITY
INVESTMENT INVENTORY ..TH MARKET VALUE
AS OF DECEMBER 31, 2005
CSH UNION BANK N/A
Redevelopment Fund $ 5,068,842.94 $ 5,068,842.94 $ 5,068,842.94
Section 8 Fund $ 598,536.52 $ 598,536.52 $ 598,536.52
Low and Moderate Income Fund $ - $ $
Nutrition Center Patron Fund $ $ $
Family Self Sufficiency Fund $ 75,741.20 $ 75,741.20 $ 75,741.20
Education Village $ - $ - $
TOTAL CASH
LAIF LOCAL AGENCY INVESTMENT FUND
TOTAL LAIF
NEGOTfABI'
$ 5,743,120.66 $ 5,743,120.66 $ 5,743,120.66 $ - 44.74%
NIA $ 1,670,405.04 $ 1,670,405.04 $ 1,670,405.04 $ $
$ 1,670,405.04 $ 1,670,405.04 $ 1,670,405.04 $
CD AMERICAN CHARTERED BANK 025121BK9 $ 95,000.00. $ 95,000.00 $ 93,232.05 $ 1,309.83 $ (1,767.95)
12/4/2006 2.750% 98.139%
CO AMERICAN NATIONAL BANK o2s4o2Ao7 $ 99,000.00 $ 99,000.00 $ 94,966.74 $ 297.00 $ (4,033.26)
1/16/2009 3.650% 95.926%
CD BANK OF OKLAHOMA 064207RL9 $ 95,000.00 $ 95,000.00 $ 89,528.95 $ (5,471.05)
4/16/2009 3.200% 94.241%
CD BRIDGEVIEW B&T CO 108551AU6 $ 97,000.00 $ 97,000.00 $ 93,221.85 $ (3,778.15)
5/5/2009 3.850% 96.105%
CD CARROLL COUNTY TC OF MO 145150AK4 $ 95,000.00 $ 95,000.00 $ 90,416.25 $ 230.34 $ (4,583.75)
6/18/2008 2.950% 95.175%
CD CITIZENS COMMUNITY BANK 17453TAVV2 $ 95,000.00 $ 95,000.00 $ 93,676.65 $ (1,323.35)
7/25/2006 2.100% 98.607%
13.01%
EXHIBIT I
CO COLONIAL BANK, NA
11/13/2007 3.000%
CD COMMERCE BANK
3/30/2007 3.000%
CD COMMUNITY BANK OF RAVENSWOOD
4/14/2009 3.500%
CD DORAL BANK
1/26/2007
CD EUROBANK.
5/14/2008
CD EVERBANK
4/30/2009
CD FARMERS B&T
5/9/2008
2.950%
3.300%
3.800%
3.450%
CD FIRST FINANCIAL BANK, NA
2/5/2007 2.800%
CD FIRST INTERNET BK OF IN
1 /28/2010 4.150%
CD HUDSON UNITED BANK
5/13/2008 3.500%
CD INDEPENDENT BANKERS' BANK
5/14/2007 3.000%
CD INTERCREDIT BANK
4/30/2007 4.900%
CD MBNA BANK
10/3/2006
4.750%
CD MERIDIAN BANK
11 /7/2006 2.700%
COMMUNITY DEVELOPMENT CO' 'SSION OF NATIONAL CITY
INVESTMENT INVENTORY .fiH MARKET VALUE
AS OF DECEMBER 31, 2005
195554HK9 $ 98,000.00 $ 98,000.00 $ 94,586.66 $ (3,413.34)
* 96.517%
2005600Z5 $ 98,000.00 $ 98,000.00 $ 95,770.50 $ (2,229.50)
97.725%o
203584BN6 $ 97,000.00 $ 97,000.00 $ 92,289.68 $ (4,710.32)
95.144%
258115JB1 $ 99,000.00 $ 99,000.00 $ 97,024.95 $ (1,975.05)
98.005%
29870UDL0 $ 95,000.00 $ 95,000.00 $ 91,370.05 $ (3,629.95)
96.179%
29976DAJ9 $ 97,000.00 $ 97,000.00 $ 93,093.81 $ (3,906.19)
95.973%
309166AY2 $ 99,000.00 $ 99,000.00 $ 95,537.97 $ 280.73 $ (3,462.03)
96.503%
32021SCL8 $ 99,000.00 $ 99,000.00 $ 96,800.22 $ 227.84 $ (2,199.78)
97.778%
32056GB02 $ 95,000.00 $ 95,000.00 $ 91,328.25 $ 324.04 $ (3,671.75)
96.135%
444168D08 $ 100,000.00 $ 100,000.00 $ 96,623.00 $ (3,377.00)
96.623%
4538300D3 $ 99,000.00 $ 99,000.00 $ 96,489.36 $ 244.11 $ (2,510.64)
97.464%
458657EV1 $ 95,000.00 $ 95,000.00 $ 94,954.40 $ (45.60)
99.952%
552640UK0 $ 95,000.00 $ 95,000.00 $ 94,959.15 $ (40.85)
99.957%
5139581A09 $ 95,000.00 $ 95,000.00 $ 93,366.95 $ (1,633.05)
98.281%
CD MILLENNIUM BANK, NA
11/7/2008 3.600%
CD NORTHPOINTE BANK
7/21/2006 2.500%
CD ONE BANK & TRUST
9/26/2005 4.700%
CD PEACHTREE NATL BANK
10/31/2008 3.400%
CD PROVIDENT BANK
5/7/2007 3.000%
CO REPUBLIC BANK. UT
5/11/2007 3.000%
CD SOVEREIGN BANK
5/5/2009 3.650%
CD THE FIRST NB OF SHELBY
6/18/2008 2.900%
CD THE GRUNDY NB
9/28/2006 4.700%
CD TRANSPORTATION ALLIANCE BANK
11/17/2006 2.650%
Cash Account Balance
COMMUNITY DEVELOPMENT CO! SSION OF NATIONAL CITY
INVESTMENT INVENTORY... r'H MARKET VALUE
AS OF DECEMBER 31, 2005
60037UC1J6 $ 99,000.00 $ 99,000.00 $ 95,122.17 $ 292.93 $ (3,877.83)
96.083%
666613AS3 $
68232YAC6 $
70467XAM8 $
743838U44 $
760310DR0 $
84603MHJ8 $
33354PAP2 $
400451AC4 $
89387WDA0 $
99.000.00 $ 99,000.00 $ 97,844.67 $ 203.42 $ (1,155.33)
98.833%
99,000.00 $ 99,000.00 $ 98,934.66 $
99.934%
95,000.00 $ 95,000.00 $ 90,843.75
95.625%
95,000.00 $ 95,000.00 $ 92,643.05
97.519%
95,000.00 $ 95,000.00 $ 92,624.05
97.499%
99,000.00 $ 99,000.00 $ 94,506.39 $
95.461%
99,000.00 $ 99,000.00 $ 94,110.39 $
95.061%
95,000.00 $ 95,000.00 $ 94,928.75
99.925%
99,000.00 $ 99,000.00 $ 97,176.42 $
98.158%
3.33 $ 3.33 $ 3.33
382.44 $ (65.34)
$ (4,156.25)
$ (2,356.95)
$ (2,375.95)
297.00 $ (4,493.61)
235.97 $ (4,889.61)
$ (71.25)
215.63 $ (1,823.58)
TOTAL CD - CDC $ 2,911,003.33 $ 2,911,003.33 $ 2,827,975.07 $ 4,541.28 $ (83,028.26) 22.03%
CD AMERICAN NATIONAL BANK
1/16/2009 3.650%
CD BANK OF OKLAHOMA .
4/16/2009 3.200%
CD CARROLL COUNTY TC OF MO
11/7/2007 3.100%
CD COLONIAL BANK -
11/13/2007 3.000%
Money Fund Balance
TOTAL CO - SECTION 8
COMMUNITY DEVELOPMENT CC FISSION OF NATIONAL CITY
INVESTMENT INVENTOR\ . TH MARKET VALUE
AS OF DECEMBER 31, 2005
028402AD7 $
064207RL9 $ 95,000.00 $ 95,000.00 $
145150AP3 $ 99,000.00 $
195554HK9 $ 95,000.00 $
$ 41.22 $
99,000.00 $ 99,000.00 $
99,000.00 $
95,000.00 $
41.22 $
94,966.74 $ 297.00 $ (4,033.26)
95.926%
89,528.95 $ (5,471.05)
94.241%
95,730.03 $ 252.25 '$ (3,269.97)
96.697%
91,691.15
96.517%
41.22
$ (3,308.85)
$ 388,041.22 $ 388,041.22 $ 371,958.09 $ 549.25 $ (16,083.13) 2.90%
FHLB FEDERAL HOME LOAN BANK
12/19/2006 2.450%
FHLB FEDERAL HOME LOAN BANK
6/1812007 3.030%
FHLB FEDERAL HOME LOAN BANK
2/5/2007 4.025%
FHLB FEDERAL HOME LOAN MTG CORP
2/16/2007 4.010%
FHLB FEDERAL HOME LOAN BANK
5/12/2009 3.250%
Cash and Money Market
TOTAL FHLB
GRAND TOTAL
31339XFA7 $ 1,000,000.00 $ 1,000,000.00 $ 979,160.00 $12,250.00 $ (20,840.00)
97.916%
3133X4H46 $ 500,000.00 $ 500,000.00 ` $ 487,940,00
97.588%
3133X8LA1 $ 250,000.00 $ 250,000.00 $ 248,017.50
99.207%
3128X4AR2 $ 200,000.00 $ 200,000.00 $ 198,438.00
99.219%
$ (12,060.00)
$ (1,982.50)
$ (1,562,00)
3133X6NP7 $ 300,000.00 $ 300,000.00 $ 297,564.00
99.188%
$ 12,261.35 $ 12,261.35 $ 12,261.35
$ 2,262,261.35 $ 2,262,26.1.35 $ 2,223,380.85 $12 250.00 $ (36,444.50) 17.32%
$ 12,974,831,,.60 $ 12,974,831.60 .$ 12,836 839.71 $ 17,340.53 $ 135 555.89 100.00%
CDC Investment Maturity Matrix
As of December 31 2005
Due within 1 year
Due within 3 years
Due within 5 years
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
January 24, 2006
AGENDA ITEM NO.3
TO: CHAIRMAN AND BOARD MEMBERS
FROM: BENJAMIN MARTINEZ, EXECUTIVE DIRECTO
VIA: PATRICIA BEARD, INTERIM REDEVELOPMENT MANAGER 04)
SUBJECT: RESOLUTION NO. 2006-04: APPROVING AN AGREEMENT WITH SCS
ENGINEERS FOR A PHASE II ENVIRONMENTAL INVESTIGATION OF
THE PARK VILLAGE SITE (APNs 555-113-04, 05, 08, 11, 12, 13) AND
AUTHORIZING THE CHAIRMAN TO EXECUTE THE AGREEMENT
RESOLUTION NO. 2006-05: APPROVING A COOPERATIVE
REMEDIATION AGREEMENT WITH AARB, LLC FOR
REIMBURSEMENT OF EXPENSES FOR A PHASE II ENVIRONMENTAL
INVESTIGATION, PREPARATION OF A PROPERTY MITIGATION
PLAN, AND MANAGEMENT OF ENVIRONMENTAL REMEDIATION FOR
THE PARK VILLAGE SITE (APNS 555-113-04, 05, 08, 11, 12, 13) AND
AUTHORIZING THE CHAIRMAN TO EXECUTE THE AGREEMENT
Recommendation:
Community Development Commission staff recommends that the Community
Development Commission Board:
ADOPT Resolution No. 2006-04 approving an Agreement with SCS
Engineers for a Phase II environmental investigation of the Park Village site
(APNs 555-113-04, 05, 08, 11, 12, 13) and authorizing the Chairman to
execute the Agreement; and,
ADOPT Resolution No. 2006-05 approving a Cooperative Remediation
Agreement with the AARB, LLC for reimbursement of expenses for a Phase II
environmental investigation, preparation of a Property Mitigation Plan, and
management of environmental remediation for the Park Village site (APNs
555-113-04, 05, 08, 11, 12, 13) and authorizing the Chairman to execute the
Agreement.
Community Development Commission Agenda Item No. 3
January 24, 2006 Page 1 of 3
January 24, 2006
Fiscal Impact:
The proposed Agreement establishes a "not to exceed" amount of $28,235 for SCS
Engineers (formerly known as Environmental Business Solutions) to complete the
Phase II investigation for the Park Village site. Agreements for the preparation of a
Property Mitigation Plan and management of environmental remediation will be brought
forward for consideration at the time such work is considered. The proposed
Cooperative Remediation Agreement provides that AARB, LLC will reimburse the
Community Development Commission for all expenses related to the Phase II
investigation, preparation of a future Property Mitigation Plan, and management of
environmental remediation at the Park Village site.
Environmental Impact:
CEQA is not applicable to this action.
Background:
In order to complete the due diligence process and obtain financing to develop the Park
Village project, located on the block bounded by National City Boulevard, Plaza
Boulevard, Roosevelt Street and Eleventh Avenue, AARB, LLC is required to complete
a Phase II environmental investigation of the site. (AARB, LLC was assigned
development and property ownership rights of lands within the Park Village site from the
Beauchamp Family Trust in December of 2005.) Phase II investigations are routinely
required by financial institutions for the redevelopment of previously urbanized
potentially contaminated sites.
The Park Village project is a redevelopment project which may include the Community
Development Commission's use of the Polanco Redevelopment Act to retain funds from
the purchase of the subject parcels for use to offset expenses of environmental
investigation and remediation. The Polanco Redevelopment Act is an environmental
justice provision of California law that allows redevelopment agencies to require
responsible parties to pay such costs. The Act does not transfer this ability to private
parties such as AARB, LLC.
A Phase I environmental investigation conducted by Tetra Tech EM Incorporated in
July, 2003 found that there have likely been releases of hazardous substances at the
Park Village site. Should the Phase II investigation confirm this suspicion, the proposed
Cooperative Remediation Agreement states AARB, LLC will reimburse the Community
Development Commission for all future costs incurred for the creation of a Property
Mitigation Plan (remediation plan) and management of environmental remediation for
the site.
Community Development Commission Agenda Item No. 3
Page 2 of 3
January 24, 2006
The Agreements presented for Community Development Commission consideration are
intended to insure that all monies potentially owed by responsible parties canbe
recovered and reduce the financial burden of redevelopment for the Park Village
Project:
• Resolution No. 2006-04 is a contract between the Community Development
Commission and SCS Engineers to conduct the Phase II investigation;
• Resolution No. 2006-05 is a contract between the Community Development
Commission and AARB, LLC requiring AARB, LLC to reimburse the Community
Development Commission for the Phase II investigation, preparation of a
Property Mitigation Plan, and management of environmental remediation at the
site.
The Community Development Commission may use its abilities under the Polanco
Redevelopment Act to recover eligible costs associated with the Phase II investigation,
preparation of a Property Mitigation Plan, and site remediation from responsible parties,
thereby reducing those costs to AARB, LLC. However, should such recovery not be
possible or fall short of the full cost of investigation, planning and remediation, the
Community Development Commission would incur no expense. AARB, LLC has
agreed to reimburse the full cost, if necessary.
The Agreement with SCS Engineers requires that all work within the Scope of Services
for the Phase II investigation must be completed by or before May 31, 2006. AARB,
LLC has agreed to the Scope of Services and to the selection of SCS Engineers as the
consultant for this work.
With this, Community Development Commission staff recommends that the Community
Development Commission Board adopt Resolution No. 2006-04 approving an
Agreement with SCS Engineers for a Phase II environmental investigation of the Park
Village site (APNs 555-113-04, 05, 08, 11, 12, 13) and authorizing the Chairman to
execute the Agreement and adopt Resolution No. 2006-05 approving a Cooperative
Remediation Agreement with AARB, LLC for reimbursement of expenses for a Phase II
environmental investigation, preparation of a Property Mitigation Plan, and management
of environmental remediation for the Park Village site (APNs 555-113-04, 05, 08, 11, 12,
13) and authorizing the Chairman to execute the Agreement.
ATTACHMENTS:
EXHIBIT 1
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
Resolution No. 2006-04
Agreement By and Between the CDC and SCS
Engineers
Resolution No. 2006 — 05
- Agreement By and Between the CDC and AARB,
LLC
Community Development Commission Agenda Item No. 3
Page 3 of 3
RESOLUTION NO. 2006-04
A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF NATIONAL CITY (CDC)
APPROVING AN AGREEMENT WITH SCS ENGINEERS
FOR A PHASE II ENVIRONMENTAL INVESTIGATION OF
THE PARK VILLAGE SITE (APN # 555-113-04, 05, 08, 11,
12, 13) AND AUTHORIZING THE CHAIRMAN TO
EXECUTE THE AGREEMENT
WHEREAS, on February 22, 2005 the Community Development Commission entered
into an Owner Participation Agreement with the Beauchamp Family Trust for the
redevelopment of parcels located at 1010 National City Boulevard, 40 West Plaza
Boulevard, 25 West 11th Street, 1018 National City Boulevard, 1040 National City
Boulevard, and 1031. Roosevelt Avenue; and,
WHEREAS, on December 13, 2005 the Beauchamp Family Trust Owner Participation
Agreement was assigned to AARB, LLC a California limited liability company; and,
WHEREAS, a Phase II environmental investigation is required as part of due diligence
for financing of said redevelopment project; and,
WHEREAS, SCS Engineers is a qualified environmental consulting firm well qualified to
conduct Phase II environmental investigations; and,
WHEREAS, AARB, LLC has agreed that the Community Development Commission
shall retain SCS Engineers to conduct the Phase II environmental investigation; and,
WHEREAS, AARB, LLC has signed an Agreement to reimburse costs of the Phase II
environmental investigation to the Community Development Commission.
NOW, THEREFORE, BE IT RESOLVED, that the Community Development
Commission of the City of National City hereby approves the Agreement with SCS
Engineers for a Phase II environmental investigation of the Park Village site (APN# 555-
113-04, 05, 08, 11, 12, 13).
BE IT FURTHERED RESOLVED, that the Community Development Commission of the
City of National City authorizes the Chairman to execute the Agreement.
1/
EXHIBIT 1
PASSED AND ADOPTED this 24th day of January 2006.
ATTEST:
Benjamin Martinez, Secretary
APPROVED AS TO FORM:
George H. Eiser, III, City -CDC Attorney
Nick Inzunza, Chairman
2
AGREEMENT
BY AND BETWEEN
THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
AND
SCS ENGINEERS
THIS AGREEMENT is entered into this 24th day of January, 2006, by and
between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
NATIONAL CITY, a municipal corporation (the "CDC"), and STEARNS, CONRAD AND
SCHMIDT CONSULTING ENGINEERS, INC. d/b/a SCS ENGINEERS (the
"CONTRACTOR").
RECITALS
WHEREAS, the CDC desires to employ a CONTRACTOR to conduct a
Phase II environmental investigation related to the Park Village redevelopment project
in the National City Redevelopment Project.
WHEREAS, the CDC has determined that the CONTRACTOR is qualified
by experience and ability to perform the services desired by the CDC, and the
CONTRACTOR is willing to perform such services.
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE
AS FOLLOWS:
1. ENGAGEMENT OF CONTRACTOR. The CDC hereby agrees to
engage the CONTRACTOR and the CONTRACTOR hereby agrees to perform the
services hereinafter set forth in accordance with all terms and conditions contained
herein.
The CONTRACTOR represents that all services required hereunder will
be performed directly by the CONTRACTOR or under direct supervision of the
CONTRACTOR.
2. SCOPE OF SERVICES. The CONTRACTOR will perform services
as set forth in the attached Exhibit A.
The CONTRACTOR shall be responsible for all research and reviews
related to the work and shall not rely on personnel of the CDC for such services, except
as authorized in advance by the CDC. The CONTRACTOR shall appear at meetings
cited in Exhibit A to keep staff and the Community Development Commission advised
of the progress on the project.
The CDC may unilaterally, or upon request from the CONTRACTOR, from time
to time reduce or increase the Scope of Services to be performed by the
EXHIBIT 2
CONTRACTOR under this Agreement. Upon doing so, the CDC and the
CONTRACTOR agree to meet in good faith and confer for the purpose of negotiating a
corresponding reduction or increase in the compensation associated with said change
in services, not to exceed a factor of 10% from the base amount.
3. PROJECT COORDINATION AND SUPERVISION.
Patricia Beard hereby is designated as the Project Coordinator for the CDC and will
monitor the progress and execution of this Agreement. The CONTRACTOR shall
assign a single Project Director to provide supervision and have overall responsibility for
the progress and execution of this Agreement for the CONTRACTOR. Nicki Field
thereby is designated as the Project Director for the CONTRACTOR.
4. COMPENSATION AND PAYMENT. The compensation for the
CONTRACTOR shall be based on monthly billings covering actual work performed.
Billings shall include labor classifications, respective rates, hours worked and also
materials, if any. The total cost for all work described in Exhibit A shall not exceed
$28,235 as shown in Exhibit A (the Base amount) without prior written authorization
from the Redevelopment Projects Manager. Monthly invoices will be processed for
payment and remitted within thirty (30) days from receipt of invoice, provided that work
is accomplished consistent with Exhibit A as determined by the CDC.
The CONTRACTOR shall maintain all books, documents, papers,
employee time sheets, accounting records, and other evidence pertaining to costs
incurred and shall make such materials available at its office at all reasonable times
during the term of this Agreement and for three (3) years from the date of final payment
under this Agreement, for inspection by the CDC and for furnishing of copies to the
CDC, if requested.
5. LENGTH OF AGREEMENT. Completion dates or time durations for specific
portions of the Project are set forth in Exhibit A. The end date of this Agreement is May
31, 2006.
6. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda,
Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the
CONTRACTOR for this Project, whether paper or electronic, shall become the property
of the CDC for use with respect to this Project, and shall be turned over to the CDC
upon completion of the Project, or any phase thereof, as contemplated by this
Agreement. CONTRACTOR may keep one copy of the foregoing for its records.
Contemporaneously with the transfer of documents, the CONTRACTOR
hereby assigns to the CDC and CONTRACTOR thereby expressly waives and
disclaims, any copyright in, and the right to reproduce, all written material, drawings,
plans, specifications or other work prepared under this agreement, except upon the
CDC's prior authorization regarding reproduction, which authorization shall not be
unreasonably withheld. The CONTRACTOR shall, upon request of the CDC, execute
any further document(s) necessary to further effectuate this waiver and disclaimer.
2 Revised October 2003
The CONTRACTOR agrees that the CDC may use, reuse, alter,
reproduce, modify, assign, transfer, or in any other way, medium or method utilize the
CONTRACTOR'S written work product for the CDC's purposes, and the CONTRACTOR
expressly waives and disclaims any residual rights granted to it by Civil Code Sections
980 through 989 relating to intellectual property and artistic works.
Any modification or reuse by the CDC of documents, drawings or
specifications prepared by the CONTRACTOR shall relieve the CONTRACTOR from
liability under Section 14 but only with respect to the effect of the modification or reuse
by the CDC, or for any liability to the CDC should the documents be used by the CDC
for some project other than what was expressly agreed upon within the Scope of this
project, unless otherwise mutually agreed.
7. INDEPENDENT CONTRACTOR. Both parties hereto in the
performance of this Agreement will be acting in an independent capacity and not as
agents, employees, partners or joint venturers with one another. Neither the
CONTRACTOR nor the CONTRACTOR'S employees are employees of the CDC and
are not entitled to any of the rights, benefits, or privileges of the CDC's employees,
including but not limited to retirement, medical, unemployment, or workers'
compensation insurance.
This Agreement contemplates the personal services of the
CONTRACTOR and the CONTRACTOR'S employees, and it is recognized by the
parties that a substantial inducement to the CDC for entering into this Agreement was,
and is, the professional reputation and competence of the CONTRACTOR and its
employees. Neither this Agreement nor any interest herein may be assigned by the
CONTRACTOR without the prior written consent of the CDC. Nothing herein contained
is intended to prevent the CONTRACTOR from employing or hiring as many
employees, or subcontractors, as the CONTRACTOR may deem necessary for the
proper and efficient performance of this Agreement. All agreements by CONTRACTOR
with its subcontractor(s) shall require the subcontractor to adhere to the applicable
terms of this Agreement.
8. CONTROL. Neither the CDC nor its officers, agents or employees
shall have any control over the conduct of the CONTRACTOR or any of the
CONTRACTOR'S employees except as herein set forth, and the CONTRACTOR
expressly agrees not to represent that the CONTRACTOR or the CONTRACTOR'S
agents, servants, or employees are in any manner agents, servants or employees of
the CDC, it being understood that the CONTRACTOR, its agents, servants, and
employees are as to the CDC wholly independent contractors and that the CONTRAC-
TOR's obligations to the CDC are solely such as are prescribed by this Agreement.
9. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in
the performance of the services to be provided herein, shall comply with all applicable
State and Federal statutes and regulations, and all applicable ordinances, rules and
regulations of the City of National City, whether now in force or subsequently enacted.
3
Revised October 2003
The CONTRACTOR, and each of its subcontractors, shall obtain and maintain a current
City of National City business license prior to and during performance of any work
pursuant to this Agreement.
10. LICENSES, PERMITS, ETC. The CONTRACTOR represents and
covenants that it has all licenses, permits, qualifications, and approvals of whatever
nature that are legally required to practice its profession. The CONTRACTOR
represents and covenants that the CONTRACTOR shall, at its sole cost and expense,
keep in effect at all times during the term of this Agreement, any license, permit, or
approval which is legally required for the CONTRACTOR to practice its profession.
11. STANDARD OF CARE.
A. The CONTRACTOR, in performing any services under this
Agreement, shall perform in a manner consistent with that level of care and skill
ordinarily exercised by members of the CONTRACTOR'S trade or profession currently
practicing under similar conditions and in similar locations. The CONTRACTOR shall
take all legally required precautions necessary to protect the CONTRACTOR's
employees and members of the public from risk of harm arising out of the nature of the
work and/or the conditions of the work site.
B. Unless disclosed in writing prior to the date of this
agreement, the CONTRACTOR warrants to the CDC that it is not now, nor has it for the
five (5) years preceding, been debarred by a governmental agency or involved in
debarment, arbitration or litigation proceedings concerning the CONTRACTOR's
professional performance or the furnishing of materials or services relating thereto.
C. The CONTRACTOR is responsible for identifying any unique
products, treatments, processes or materials whose availability is critical to the success
of the project the CONTRACTOR has been retained to perform, within the time
requirements of the CDC, or, when no time is specified, then within a commercially
reasonable time. Accordingly, unless the CONTRACTOR has notified the CDC
otherwise, the CONTRACTOR warrants that all products, materials, processes or
treatments identified in the project documents prepared for the CDC are reasonably
commercially available. Any failure by the CONTRACTOR to use due diligence under
this sub -paragraph will render the CONTRACTOR liable to the CDC for any increased
costs that result from the CDC's later inability to obtain the specified items or any
reasonable substitute within a price range that allows for project completion in the time
frame specified or, when not specified, then within a commercially reasonable time.
12. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall
not discriminate against any employee or applicant for employment because of age,
race, color, ancestry, religion, sex, sexual orientation, marital status, national origin,
physical handicap, or medical condition. The CONTRACTOR will take positive action to
insure that applicants are employed without regard to their age, race, color, ancestry,
religion, sex, sexual orientation, marital status, national origin, physical handicap, or
medical condition. Such action shall include but not be limited to the following:
employment, upgrading, demotion, transfer, recruitment or recruitment advertising,
layoff or termination, rates of pay or other forms of compensation, and selection for
training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous
4
Revised October 2003
places available to employees and applicants for employment any notices provided by
the CDC setting forth the provisions of this non-discrimination clause.
13. CONFIDENTIAL INFORMATION. The CDC may from time to time
communicate to the CONTRACTOR certain confidential information to enable the
CONTRACTOR to effectively perform the services to be provided herein. The
CONTRACTOR shall treat all such information as confidential and shall not disclose
any part thereof without the prior written consent of the CDC. The CONTRACTOR shall
limit the use and circulation of such information, even within its own organization, to the
extent necessary to perform the services to be provided herein. The foregoing
obligation of this Section 13, however, shall not apply to any part of the information that
(i) has been disclosed in publicly available sources of information; (ii) is, through no
fault of the CONTRACTOR, hereafter disclosed in publicly available sources of
information; (iii) is already in the possession of the CONTRACTOR without any
obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the
CONTRACTOR by a third party, but only to the extent that the use or disclosure thereof
has been or is rightfully authorized by that third party.
The CONTRACTOR shall not disclose any reports, recommendations,
conclusions or other results of the services or the existence of the subject matter of this
Agreement without the prior written consent of the CDC. In its performance hereunder,
the CONTRACTOR shall comply with all legal obligations it may now or hereafter have
respecting the information or other property of any other person, firm or corporation.
CONTRACTOR shall be liable to CDC for any damages caused by breach
of this condition, pursuant to the provisions of Section 14.
14. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR
agrees to defend, indemnify, and hold harmless the Community Development
Commission of the City of National City, its officers and employees, against and from
any and all liability, loss, damages to property, injuries to, or death of any person or
persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys'
fees, and defense costs, of any kind or nature, including workers' compensation claims,
of or by anyone whomsoever, resulting from or arising out of the CONTRACTOR's
negligent performance of this Agreement.
15. WORKERS' COMPENSATION. The CONTRACTOR shall comply
with all of the provisions of the Workers' Compensation Insurance and Safety Acts of
the State of California, the applicable provisions of Division 4 and 5 of the California
Government Code and all amendments thereto; and all similar state or Federal acts or
laws applicable; and shall indemnify, and hold harmless the CDC and its officers, and
employees from and against all claims, demands, payments, suits, actions,
proceedings and judgments of every nature and description, including reasonable
attorney's fees and defense costs presented, brought or recovered against the CDC or
its officers, employees, or volunteers, for or on account of any liability under any of said
acts which may be incurred by reason of any work to be performed by the
CONTRACTOR under this Agreement.
5
Revised October 2003
16. INSURANCE. The CONTRACTOR, at its sole cost and expense,
shall purchase and maintain, and shall require its subcontractors, when applicable, to
purchase and maintain throughout the term of this agreement, the following insurance
policies:
® A. If checked, Professional Liability Insurance (errors and omissions)
with minimum limits of $1,000,000 per occurrence.
B. Automobile insurance covering all bodily injury and property
damage incurred during the performance of this Agreement, with a minimum coverage
of $1,000,000 combined single limit per accident. Such automobile insurance shall
include non -owned vehicles.
C. Comprehensive general liability insurance, with minimum limits of
$1,000,000 combined single limit per occurrence, covering all bodily injury and property
damage arising out of its operation under this Agreement.
D. Workers' compensation insurance covering all of CONSULTANT's
employees.
E. The aforesaid policies shall constitute primary insurance as to the
CDC, its officers, employees, and volunteers, so that any other policies held by the
CDC shall not contribute to any loss under said insurance. Said policies shall provide
for thirty (30) days prior written notice to the CDC of cancellation or material change.
F. Said policies, except for the professional liability and worker's
compensation policies, shall name the CDC and its officers, agents and employees as
additional insureds.
G. If required insurance coverage is provided on a "claims made"
rather than "occurrence" form, the CONTRACTOR shall maintain such insurance
coverage for three years after expiration of the term (and any extensions) of this Agree-
ment.
ment.
H. Any aggregate insurance limits must apply solely to this Agree-
I. Insurance shall be written with only California licensed companies
which hold a current policy holder's alphabetic and financial size category rating of not
less than A VIII according to the current Best's Key Rating Guide, or a company equal
financial stability that is approved by the City's Risk Manager.
J. This Agreement shall not take effect until certificate(s) or other
sufficient proof that these insurance provisions have been complied with, are filed with
and approved by the CITY's Risk Manager. If the CONTRACTOR does not keep all of
such insurance policies in full force and effect at all times during the terms of this
Agreement, the CDC may elect to treat the failure to maintain the requisite insurance as
a breach of this Agreement and terminate the Agreement as provided herein.
17. LEGAL FEES. If any party brings a suit or action against the other
party arising from any breach of any of the covenants or agreements or any
inaccuracies in any of the representations and warranties on the part of the other party
arising out of this Agreement, then in that event, the prevailing party in such action or
dispute, whether by final judgment or out -of -court settlement, shall be entitled to have
and recover of and from the other party all costs and expenses of suit, including
attorneys' fees.
6
Revised October 2003
For purposes of determining who is to be considered the prevailing party,
it is stipulated that attorney's fees incurred in the prosecution or defense of the action or
suit shall not be considered in determining the amount of the judgment or award.
Attorney's fees to the prevailing party if other than the CDC shall, in addition, be limited
to the amount of attorney's fees incurred by the CDC in its prosecution or defense of
the action, irrespective of the actual amount of attorney's fees incurred by the prevailing
party.
18. MEDIATION/ARBITRATION. If a dispute arises out of or relates
to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to
settle the dispute by mediation in San Diego, California, in accordance with the
Commercial Mediation Rules of the American Arbitration Association (the "AAA") before
resorting to arbitration. The costs of mediation shall be borne equally by the parties.
Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof,
which is not resolved by mediation shall be settled by arbitration in San Diego,
California, in accordance with the Commercial Arbitration Rules of the AAA then
existing. Any award rendered shall be final and conclusive upon the parties, and a
judgment thereon may be entered in any court having jurisdiction over the subject
matter of the controversy. The expenses of the arbitration shall be borne equally by the
parties to the arbitration, provided that each party shall pay for and bear the costs of its
own experts, evidence and attorneys' fees, except that the arbitrator may assess such
expenses or any part thereof against a specified party as part of the arbitration award.
19. TERMINATION. A. This Agreement may be terminated with or
without cause by the CDC. Termination without cause shall be effective only upon 60-
day's written notice to the CONTRACTOR. During said 60-day period the
CONTRACTOR shall perform all services in accordance with this Agreement.
B. This Agreement may also be terminated immediately by the CDC
for cause in the event of a material breach of this Agreement, misrepresentation by the
CONTRACTOR in connection with the formation of this Agreement or the performance
of services, or the failure to perform services as directed by the CDC.
C. Termination with or without cause shall be effected by delivery of
written Notice of Termination to the CONTRACTOR as provided for herein.
D. In the event of termination, all finished or unfinished Memoranda
Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the
CONTRACTOR, whether paper or electronic, shall immediately become the property of
and be delivered to the CDC, and the CONTRACTOR shall be entitled to receive just
and equitable compensation for any work satisfactorily completed on such documents
and other materials up to the effective date of the Notice of Termination, not to exceed
the amounts payable hereunder, and less any damages caused the CDC by the
CONTRACTOR'S breach, if any. Thereafter, ownership of said written material shall
vest in the CDC all rights set forth in Section 6.
E. The CDC further reserves the right to immediately terminate this
Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR;
(2) a reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business
reorganization, change in business name or change in business status of the
CONTRACTOR.
7 Revised October 2003
20. NOTICES. All notices or other communications required or
permitted hereunder shall be in writing, and shall be personally delivered; or sent by
overnight mail (Federal Express or the like); or sent by registered or certified mail,
postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or
telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall
be deemed received upon the earlier of (i) if personally delivered, the date of delivery to
the address of the person to receive such notice, (ii) if sent by overnight mail, the
business day following its deposit in such overnight mail facility, (iii) if mailed by
registered, certified or ordinary mail, five (5) days (ten (10) days if the address is
outside the State of California) after the date of deposit in a post office, mailbox, mail
chute, or other like facility regularly maintained by the United States Postal Service, (iv)
if given by telegraph or cable, when delivered to the telegraph company with charges
prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice,
request, demand, direction or other communication delivered or sent as specified above
shall be directed to the following persons:
To the CDC:
Benjamin Martinez
Executive Director
Community Development Commission
of the City of National City
140 East 12th Street, Suite B
National City, CA 91950
To the CONTRACTOR: Daniel Johnson
Vice President
SCS Engineers
8799 Balboa Ave, Ste 290
San Diego CA 92123
Notice of change of address shall be given by written notice in the manner
specified in this Section. Rejection or other refusal to accept or the inability to deliver
because of changed address of which no notice was given shall be deemed to
constitute receipt of the notice, demand, request or communication sent. Any notice,
request, demand, direction or other communication sent by cable, telex, telecopy,
facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or
delivered as specified in this Section.
21. CONFLICT OF INTEREST AND POLITICAL REFORM ACT
OBLIGATIONS. During the term of this Agreement, the CONTRACTOR shall not
perform services of any kind for any person or entity whose interests conflict in any way
with those of the Community Development Commission of the City of National City.
The CONTRACTOR also agrees not to specify any product, treatment, process or
material for the project in which the CONTRACTOR has a material financial interest,
either direct or indirect, without first notifying the CDC of that fact. The CONTRACTOR
shall at all times comply with the terms of the Political Reform Act and the National City
Conflict of Interest Code. The CONTRACTOR shall immediately disqualify itself and
8
Revised October 2003
shall not use its official position to influence in any way any matter coming before the
CDC in which the CONTRACTOR has a financial interest as defined in Government
Code Section 87103. The CONTRACTOR represents that it has no knowledge of any
financial interests that would require it to disqualify itself from any matter on which it
might perform services for the CDC.
❑ If checked, the CONTRACTOR shall comply with all of the
reporting requirements of the Political Reform Act and the National City Conflict of
Interest Code. Specifically, the CONTRACTOR shall file a Statement of Economic
Interests with the City Clerk of the City of National City in a timely manner on forms
which the CONTRACTOR shall obtain from the City Clerk.
The CONTRACTOR shall be strictly liable to the CDC for all damages,
costs or expenses the CDC may suffer by virtue of any violation of this Paragraph 21 by
the CONTRACTOR.
22. MISCELLANEOUS PROVISIONS.
A. Computation of Time Periods. If any date or time period provided
for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday,
then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next
day which is not a Saturday, Sunday or federal, state or legal holiday.
B. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which, together, shall
constitute but one and the same instrument.
C. Captions. Any captions to, or headings of, the sections or
subsections of this Agreement are solely for the convenience of the parties hereto, are
not a part of this Agreement, and shall not be used for the interpretation or
determination of the validity of this Agreement or any provision hereof.
D. No Obligations to Third Parties. Except as otherwise expressly
provided herein, the execution and delivery of this Agreement shall not be deemed to
confer any rights upon, or obligate any of the parties hereto, to any person or entity
other than the parties hereto.
E. Exhibits and Schedules. The Exhibits and Schedules attached
hereto are hereby incorporated herein by this reference for all purposes.
F. Amendment to this Agreement. The terms of this Agreement may
not be modified or amended except by an instrument in writing executed by each of the
parties hereto.
G. Waiver. The waiver or failure to enforce any provision of this
Agreement shall not operate as a waiver of any future breach of any such provision or
any other provision hereof.
H. Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of California.
I. Entire Agreement. This Agreement supersedes any prior agree-
ments, negotiations and communications, oral or written, and contains the entire
agreement between the parties as to the subject matter hereof. No subsequent
agreement, representation, or promise made by either party hereto, or by or to an
9 Revised October 2003
employee, officer, agent or representative of any party hereto shall be of any effect
unless it is in writing and executed by the party to be bound thereby.
J. Successors and Assigns. This Agreement shall be binding upon
and shall inure to the benefit of the successors and assigns of the parties hereto.
K. Construction. The parties acknowledge and agree that (i) each
party is of equal bargaining strength, (ii) each party has actively participated in the
drafting, preparation and negotiation of this Agreement, (iii) each such party has
consulted with or has had the opportunity to consult with its own, independent counsel
and such other professional advisors as such party has deemed appropriate, relative to
any and all matters contemplated under this Agreement, (iv) each party and such
party's counsel and advisors have reviewed this Agreement, (v) each party has agreed
to enter into this Agreement following such review and the rendering of such advice,
and (vi) any rule or construction to the effect that ambiguities are to be resolved against
the drafting party shall not apply in the interpretation of this Agreement, or any portions
hereof, or any amendments hereto.
IN WITNESS WHEREOF, the parties. hereto have executed this
Agreement on the date and year first above written.
COMMUNITY DEVELOPMENT
OF THE CITY OF NATIONAL CITY
(Two quired for a corporation)
By: By:
Nick lnzunza, Chairman (Name
V1.0e
(Title)
APPROVED AS TO FORM:
George H. Eiser, III (Name)
CDC Legal Counsel
\,/ P
(Title)
10
Revised October 2003
environmental business solutions.
M SCE Engineers Cow
8799 Balboa Avenue
Suite 290
San Diego CA
92123
T 858 571 5500
F 858 571 5357
providing
economic
environmental
solutions
to the business
community
December 9, 2005
Proposal Number: 01676205.14
Exhibit 14
Ms. Patricia Beard
Community Development Commission
140 East 12th Street, Suite B,
National City, California 91950
RE: Proposal to Conduct a Subsurface Site Assessment (Assessment)
Site: Park Village Redevelopment Project
1010, 1028, and 1040 National City Boulevard; 25 West 11th
Street; 1031 Roosevelt Avenue; and 40 West Plaza Boulevard
National City, California
Dear Ms. Beard:
Environmental Business Solutions (EBS) is pleased to submit this proposal to
perform assessment activities at the above -referenced Site. Upon written approval,
this proposal will serve as Exhibit 14 to the Agreement between EBS and
Community Development Commission (CDC) (Client). This proposal is based on
our conversations with CDC counsel, a review of a Client -provided report, and a
preliminary review of our in-house databases.
BACKGROUND
The Site consists of six parcels (assessor parcel numbers [APNs] 555-113-
04, -05, -08, -11, -12, and -13) which are located on the block bordered by
National City Boulevard, West 11th Street, Roosevelt Avenue, and West
Plaza Boulevard. The Site is approximately 1.43 acres in size.
EXHIBIT "A"
www.scsengineers.com
www.ebsenvironmental.com
Community Development Commission AGREEMENT FOR SERVICES
Proposal Number: 01676205.00 Page 2 of 15
December 9, 2005 Environmental Business Solutions
Based on a report provided by the Client and our assessment activities at the Site, the
Site is occupied by the Auto Buyers Plus (automotive sales facility) at 1010 National
City Boulevard and 40 West Plaza Boulevard, Community Youth Athletic Center
(gym) at 1028 National City Boulevard, Quality Cars and Trucks - Sports Auto
(automotive sales and repair facility) at 1040 National City Boulevard, Ray Brock
Auto Service (automotive repair facility) at 25 West 1 1*h Street, and All Service
Cleaners (dry cleaners) and Magic Flow Dry Cleaning Equipment (a dry cleaning
equipment sales and repair facility) and a residential apartment at 1031 Roosevelt
Avenue.
Based on the previous report, the eastern portion of the Auto Buyers Plus facility
1010 National City Boulevard at appears to have been occupied by a gasoline service
station from at least 1926 to 1956.
Based on the previous report, a 1,000-gallon gasoline UST was removed from the
1040 National City Boulevard portion of the Site in 1991; and, based on a review of
Sanborn Fire Insurance maps, this facility was occupied by auto repair facilities since
1926.
Based on the previous report, at least three inground hydraulic lifts, and a UST fill
port were observed at Ray Brock Auto Service. Also, based on a review of Sanborn
Fire Insurance maps, this facility was occupied by auto repair facilities since 1956.
Based on our review of the County of San Diego Department of Environmental
Health (DEH) HE-17 database, this facility uses oil and transmission fluid in a 160-
gallon AST; generates wastes including halogenated and hydrocarbon solvents, used
oil filters, degreasing sludge, waste oil and mixed oil, and used batteries; and has been
cited for 39 general hazardous materials handling violations and 6 disposal violations.
Based on the previous report, we understand that the 1031 Roosevelt Avenue portion
of the Site has been occupied by a dry cleaners since at least 1956. Based on review of
the HE-17 database, this facility uses tetrachloroethene (PCE), generates halogenated
solvent (PCE) waste, and has been cited for 10 general hazardous materials handling
violations.
In December 2005, EBS conducted a subsurface investigation at this portion of the
Site. Five soil borings and twelve soil vapor probes were advanced. Soil samples were
collected at depths of approximately 1, 3, and 5 feet below grade. Soil vapor samples
were collected at depths of approximately 5 feet below grade. The preliminary results
of the soil vapor survey indicate that detectable PCE concentrations, ranging from 6.2
to 490 micrograms per liter as vapor (pg/L-v), were reported in every sample;
Community Development Commission AGREEMENT FOR SERVICES
Proposal Number: 01676205.00 Page 3 of 15
December 9, 2005 Environmental Business Solutions
detectable trichloroethene (TCE) concentrations, of 2.5 and 11 pg/L-v, were reported
in two samples; and a detectable 1,1,2-trichloroethane (1,1,2-TCA) concentration, of
4.2 pg/L-v, was reported in one sample. The results of the soil sampling are not yet
available.
We understand that the Site will be redeveloped as Park Village, a residential high-
rise with at least two levels of below -grade parking (to approximately 22 feet below
grade).
OBJECTIVES
The objectives of the proposed scope of services are to:
•
•
Conduct reconnaissances of the 1010, 1028, and 1040 National City
Boulevard; 25 West 11th Street; and 40 West Plaza Boulevard facilities:
Assess the possible presence, concentration, and extent of VOCs (e.g., dry
cleaning solvent such as PCE and PCE-breakdown products) in soil, soil
vapor, and groundwater in selected locations at the Site.
Assess the possible presence and concentrations of petroleum products and
VOCs in the vicinity of features of concern (FOCs)(e.g., inground hydraulic
lifts, the waste oil AST, and any USTs, sumps, clarifiers, or areas of staining
that may be present) at 25 West 11 th Street.
Assess the possible presence and concentrations of petroleum products and
VOCs in the vicinity of potential FOCs (e.g., inground hydraulic lifts, any
ASTs or USTs, sumps, clarifiers, or areas of staining that may be present) at
1040 National City Boulevard.
Assess the possible presence and concentrations of petroleum hydrocarbons
and VOCs (i.e., benzene and other gasoline compounds) in groundwater in
selected locations at the 1010 National City Boulevard property which appears
to have historically been occupied by a gasoline service station.
Develop, based on the results of the proposed assessment activities, a
Conceptual Cost Estimate (CCE) in connection with the
remediation/mitigation of impacted soil, soil vapor, and/or groundwater.
Community Development Commission AGREEMENT FOR SERVICES
Proposal Number: 01676205.00 Page 4 of 15
December 9, 2005 Environmental Business Solutions
SCOPE OF SERVICES
Task I Facility Reconnaissances
EBS will conduct facility reconnaissances of the 1010, 1028, and 1040 National City
Boulevard; 25 West 11th Street; and 40 West Plaza Boulevard facilities to identify
potential FOCs, locate utilities, and finalize sampling locations.
EBS will notify Underground Service Alert (USA), as required by state law, and
retain a private utility locating service prior to commencement of field operations.
This procedure is designed to minimize the likelihood of drilling into a subsurface
utility.
The lump sum cost to conduct the scope of services in Task I is $1,330.
Task l/ Preparation for Field Work
Preparation of Health and Safety Plan
A health and safety plan for work conducted at the Site and workers within the
"exclusion zone" is required pursuant to the regulations found in 29 Code of Federal
Regulations (CFR) Part 1910.120 and California Code of Regulations (CCR), Title 8,
Section 5192. Therefore, a health and safety plan will be prepared for the proposed
work scope, and will outline the potential chemical and physical hazards that may be
encountered during drilling and sampling activities. The appropriate personal
protective equipment and emergency response procedures for the anticipated site -
specific chemical and physical hazards will be detailed in this plan. EBS and
contracted personnel involved with the proposed field work will be required to sign
this document in order to encourage proper health and safety practices.
Preparation of Soil Boring Permit Applications
As seven of the soil borings are proposed to extend to groundwater, a soil boring
permit will be required. EBS will prepare and submit the necessary soil boring permit
application and the appropriate fees to San Diego County. The soil boring permit
application will reflect appropriate backfilling protocol. Please note that since the
proposed borings are situated on properties not owned by the Client, the submittal of
the permit will require the preparation and submittal of a property owner
responsibility agreement (PORA) for each property on which borings to groundwater
are to be drilled. Communication and coordination with these property owners to
Community Development Commission
Proposal Number: 01676205.00
December 9, 2005
AGREEMENT FOR SERVICES
Page 5 of 15
Environmental Business Solutions
obtain the signed PORAs and access agreements will be performed under this task.
Four hours of project professional time has been estimated to obtain these documents
(one hour for each property owner that a PORA is required for, with the exception of
Mr. Beauchamp whom it is assumed will execute the PORA and access agreement).
If additional time is required, it will be invoiced in accordance with the enclosed fee
schedule.
Subcontractor Management
The appropriate subcontractor services will be obtained such as concrete or asphalt
cutting, drilling, sample analysis, and other required contractor services. This task
also includes time to coordinate and manage subcontractors, such as the drilling
contractor and analytical laboratory, secure the necessary specialized equipment, and
prepare for field mobilization. The estimated budget also includes limited time for
project management activities such as planning, client communication and liaison,
project status updates, and budget and invoice review by the project manager.
The lump sum cost to conduct the scope of services in Task II is $1,790.
Task III Drilling and Sampling of Fifteen Soil Borings
Drilling and Sampling
A direct push -type drilling rig, such as a Stratoprobeo, will be used to attempt to drill
15 soil borings (soil borings B 1 through B 15) to depths of up to approximately 25 feet
below grade. Please note, we are assuming target depths can be reached with a direct
push -type rig (this will save time and costs, will produce no cuttings, will be easier to
maneuver, etc.). However, if refusal with the direct push -type rig is encountered prior
to achieving target depths, a drilling rig equipped with hollow stem augers will be
required and will results in increased costs (i.e., higher cost per foot, additional time
on -Site, additional drums for cuttings, drum disposal, etc.).
The drilling program is expected to take approximately 3 days to complete. The total
proposed drilling footage is approximately 230 to 260 feet. The following table
presents the proposed soil borings locations, rationales, approximate sampling depths,
and analyses:
Community Development Commission
Proposal Number: 01676205.00
December 9, 2005
AGREEMENT FOR SERVICES
Page 6 of 15
Environmental Business Solutions
Boring
Number
Location
Rationale
Depths
Analysis
B 1
Storage yard/parking
area of 1031 Roosevelt
Avenue
Further assess known
PCE release
5, 10, 15, 20, and 25
feet below grade, and
groundwater sample
EPA Method 8021 for
VOCs
Groundwater sample -
EPA Method 8260B
B2
Parking lot of 25 West
116 Street
Further assess known
PCE release
5, 10, 15, 20, and 25
feet below grade, and
groundwater sample
EPA Method 8021 for
VOCs
Groundwater sample -
EPA Method 8260B
B3, B4,
and B5
i
Adjacent to three
inground hydraulic lifts
at Ray Brock Auto
Service
Assess potential
release of hydraulic
fluid from lifts
9 and 12 feet below
grade
Modified EPA Method
8015 for diesel- and
oil -range
hydrocarbons, and
highest TPHo with .
EPA Method 8082 for
polychlorinated
biphenyls (PCBs)
,B6 and B7
Adjacent to inlet and
outlet of potential
clarifier at Ray Brock
Auto Service
Assess potential
release of petroleum
hydrocarbons from
potential clarifier
1 and 5 feet below base
of potential clarifier
Modified EPA Method
8015 for gasoline -
through oil -range
hydrocarbons, and
EPA Method 8021 for
VOCs
B8
Adjacent to waste oil
AST at Ray Brock
Auto Service
Assess potential
release of waste oil
from AST
1 and 5 feet below
grade
Modified EPA Method
8015 for diesel- and
oil -range hydrocarbons
and EPA Method 8021
for VOCs
Community Development Commission
Proposal Number: 01676205.00
December 9, 2005
AGREEMENT FOR SERVICES
Page 7 of 15
Environmental Business Solutions
Boring
Number
B9, B10,
and B11*
Location
Rationale
Depths
Analysis
In vicinity of FOCs at
Quality Cars and
Trucks - Sports Auto
Assess potential
release of petroleum
hydrocarbons and
VOCs from potential
FOCs, and further
assess known PCE
release
9 and 12 feet below
grade in vicinity of
potential hydraulic lifts
1 and 5 feet below
base of potential
clarifier or former UST
(if location can be
ascertained)
1 and 5 feet below
grade in vicinity of
potential staining or
hazardous
materials/waste/petrole
urn products storage
areas
Groundwater sample
will also be collected
from one of these
borings to further
assess known PCE
release
Modified EPA Method
8015 for diesel- and
oil -range
hydrocarbons, and
highest TPHo with
EPA Method 8082 for
polychlorinated
bipbenyls (PCBs) for
samples collected in
the vicinity of
hydraulic lifts
Modified EPA Method
8015 for gasoline -
through oil -range
hydrocarbons, and
EPA Method 8021 for
VOCs for samples
collected in the vicinity
of clarifier, staining or
hazardous
materials/waste/petrole
urn products storage
areas
Groundwater sample -
EPA Method 8260B
B12
Parking lot of Auto
Buyers Plus
Further assess known
PCE release, and
assess potential release
from historical
gasoline service station
5, 10, 15, 20, and 25
feet below grade, and
groundwater sample
Modified EPA Method
8015 for gasoline -
through oil -range
hydrocarbons, and
EPA Method 8021 for
VOCs
Groundwater sample -
EPA Method 8260B
Community Development Commission
Proposal Number: 01676205.00
December 9, 2005
AGREEMENT. FOR SERVICES
Page 8 of 15
Environmental Business Solutions
Boring
Number
lnd B 15
Location
Rationale
Depths
Analysis
13, B14,
Parking lot of Auto
Buyers Plus dealership,
adjacent to 1028
National City
Boulevard properties
Assess potential
release from historical
gasoline service station
5, 10, 15, 20, and 25
feet below grade, and
groundwater sample
Modified EPA Method
8015 for gasoline -
through oil -range
hydrocarbons, and
highest TPH with EPA
Method 8021 for
VOCs
Groundwater sample -
EPA Method 8260B
*Please note, if no FOCs are identified at this facility, then one boring will be advanced and a groundwater sample
will be collected.
During the drilling activities, soil samples will be collected at the above -noted depth
intervals, at significant lithological changes, and at other appropriate depths based on
the professional judgment of the on -site geologist. Based on observations during
previous work conducted by EBS in the Site vicinity, groundwater is expected to be
encountered at an approximate depth of 22 to 25 feet below grade.
We anticipate that up to 48 soil samples and 7 groundwater samples will be collected.
If visual observations or laboratory results of the soil samples indicate that the
petroleum hydrocarbon -bearing soil extends deeper, or farther laterally, than the
proposed target depths or soil boring locations, we may, with the Client's approval,
seek to drill and sample to increased depths or drill additional soil borings. This
would utilize the on -site equipment to maximum efficiency.
Soil samples will be driven into acetate tubes. The ends of the sample tubes will be
covered with Teflon' sheeting, and tightly closed with end caps for handling and
transportation activities. The sample containers will be packed and stored in an ice -
filled cooler for delivery to the analytical laboratory. Chain -of -custody procedures
will be implemented for sample tracking. A written analytical report will be provided
by the laboratory upon completion of the sample testing.
A "grab" groundwater sample will also be collected from seven of the soil borings.
The groundwater samples will be collected using a Hydropunch 11TM sampler and 0.5-
inch precleaned bailers. If due to subsurface conditions, groundwater samples cannot
be collected with the Hydropunch JJTM sampler; then temporary PVC casing will be
installed, and three borehole volumes of water will be purged from the boring and a
groundwater sample will be collected with a peristaltic pump. Please note, the cost
estimate here assumes that groundwater samples can be collected with Hydropunch
Community Development Commission
Proposal Number: 01676205.00
December 9, 2005
AGREEMENT FOR SERVICES
Page 9 of 15
Environmental Business Solutions
IITM sampler, if the Hydropunch 11TM sampler is ineffective at the Site and it becomes
necessary to install PVC casing and use the peristaltic pump, then costs will increase.
The groundwater samples will be decanted into laboratory -supplied containers, which
will be capped and labeled. The sample containers will be packed and stored in an
ice -filled cooler for delivery to the analytical laboratory. Chain -of -custody procedures
will be implemented for sample tracking.
As required by San Diego County guidelines, precleaned acetate tubes will be used to
minimize the likelihood of "cross -contaminating" a given boring and to minimize the
potential for a "false -positive" in the soil samples analyzed. The probe tip and rods
will be cleaned between borings with a cleaning process consisting of a water-
AlconoxTM solution wash, and two tap water rinses.
Upon completion of drilling and groundwater sampling, the borings will be backfilled
with an approved grout and capped with concrete or asphalt in general accordance
with DEH requirements.
Sample Analysis
Up to 48 soil samples and 7 groundwater samples will be analyzed at a fixed -base
laboratory. Up to 30 soil samples will be analyzed for total petroleum hydrocarbons
(TPH) as gasoline (TPHg), as diesel (TPHd), and as oil (TPHo) in general accordance
with modified EPA Method 8015; up to 14 soil samples will be analyzed for TPHd
and TPHo in general accordance with modified EPA Method 8015; up to 2 samples
will be analyzed for PCBs in general accordance with EPA Method 8082; and up to
30 soil samples will be analyzed for VOCs in general accordance with EPA Method
8021.
The seven groundwater samples will be analyzed for VOCs in general accordance
with EPA Method 8260B.
The lump sum cost to perform the scope of services in Task III is $19,725.
Task IV Disposal of Rinsate
Rinsate, and any purge water, generated during the assessment activities will be
placed in appropriate 55-gallon drums. The disposal of rinsate may be dependent
upon the concentrations of contaminants encountered. if the sample results indicate
detectable concentrations of PCE or breakdown products are reported present, then
the drum(s) will be disposed of as a hazardous waste since PCE is a listed waste. If no
Community Development Commission AGREEMENT FOR SERVICES
Proposal Number: 01676205.00 Page 10 of 15
December 9, 2005 Environmental Business Solutions
detectable concentrations of PCE or breakdown products are reported, then it is
anticipated that the drums will be disposed of at an off -site treatment facility such as
EFR Environmental Services, Inc. in Quartzsite, Arizona. For the purposes of
estimating the budget, we have assumed disposal of two drums of rinsate water and
that the drums will be handled as hazardous waste.
If the Client is unable to provide an authorized representative to sign the manifests at
the time of scheduled waste pickup, EBS will provide a representative who is
qualified under 49 CFR Subpart H (Parts 172.700-704), to act as the signatory for the
generator (Client). The budget includes time for our representative to travel to and
from the Site and for the disposal of 2 drums. Your signature on this proposal
indicates your agreement for EBS to act as your authorized agent, if necessary.
The lump sum cost to perform the scope of services in Task IV is $890.
Task V Report Preparation
Based on the findings of the field investigation and laboratory results from the above
scope of services, a letter report (Report) will be prepared in general accordance with
DEH guidelines. The Report will cover the various areas investigated at the Site and
will include laboratory reports, chain -of -custody records, soil boring lithologic logs,
figures and cross sections indicating soil boring locations and sample analytical
results, tabulated analytical results, groundwater sampling results, and appropriate
support documentation. Please note the Report will also include the results of the
recent assessment activities conducted by EBS at 1031 Roosevelt Avenue. The Report
will be peer reviewed and signed by the appropriately licensed professional. The
report will be written in general accordance with the guidelines presented in the
current SAM Manual and the site assessment report checklist. This Task also includes
the preparation and submittal of a 60-day drilling report as required by the DEH.
The lump sum cost to perform the scope of services in Task V is $3,000.
Task VI Conceptual Cost Estimate
Based on the results of the proposed assessment activities, a CCE will be prepared for
the remediation/mitigation of potential impacted soil, soil vapor, and/or groundwater.
The CCE will present a range of potential costs, which may be reasonably expected to
bracket the actual remediation or environmental response costs likely to be associated
with the identified soil, soil vapor, and groundwater impacts, but are estimates only to
be used as a general guide or to assist in decision making. The CCE should not be
relied on as being representative as "hard" costs to be incurred in the pursuit of Site
Community Development Commission
Proposal Number: 01676205.00
December 9, 2005
AGREEMENT FOR SERVICES
Page 11 of 15
Environmental Business Solutions
closure. Actual assessment and remedial activities may be different than the provided
CCE. The CCE which will be provided in the Report will be for discussion and
planning purposes only and shall not be relied upon as an accurate predictor of total
project costs.
The lump sum cost to perform the scope of services in Task VI is $1,500.
ESTIMATED BUDGET AND SCHEDULE
The EBS team stands ready to begin this project immediately upon receipt of this
signed contract. We estimate Tasks I and II of the project will take approximately 2 to
3 weeks to complete, and that Tasks HI, IV, and V will take approximately 6 to 7
weeks to complete. Results from the field work should be available approximately 2
weeks from commencement of the project. A final completion report will be prepared
and submitted to the Client within 20 working days of the receipt of all laboratory
data.
THE TOTAL LUMP SUM COST FOR THE SITE ASSESSMENT
ACTIVITIES DESCRIBED HEREIN IS $28,235.
Compensation described herein shall be subject to renegotiation if authorization to
proceed has not been given within 30 days of the date of the Agreement of Services.
We propose to perform our services, and invoice, in accordance with the previously
executed Consulting Agreement and the attached Schedule of Rates and Conditions of
Service.
Community Development Commission
Proposal Number: 01676205.00
December 9, 2005
AGREEMENT FOR SERVICES
Page 12 of 15
Environmental Business Solutions
If we can be of further assistance, or if you have any questions regarding the above scope of
services, please contact one of the undersigned at (858) 571-5500.
Respectfully,
ENVIRONMENTAL BUSINESS SOLUTIONS
An SCS Engineers Company
L ;14
Nicki Field Daniel E. Johnson
Project Professional Vice President
Tessa McRae, Ph.D., P.G. 6582
Senior Technical Manager
Enclosures
nmf
F:\Proposals\205\651-700\676 (CDC)\ 01676205.14.ppr.wpd
Community Development Commission AGREEMENT FOR SERVICES
Proposal Number: 01676205.00 Page 13 of 15
December 9, 2005 Environmental Business Solutions
Upon acceptance and execution of this proposal, this document may serve as Exhibit 14 to
the previously executed Agreement between EBS and the Client. The Client should sign the
two enclosed copies of Exhibit 14, return one copy to EBS, and retain one copy for your
records.
Signature of the EBS Representative Signature of the Client Representative
Printed Name Printed Name
Title Title
Date Date
Community Development Commission AGREEMENT FOR SERVICES
Proposal Number: 01676205.00 Page 14 of 15
December 9, 2005 Environmental Business Solutions
CONDITIONS OF SERVICE
This Agreement for Services is based on, but not limited to, the following conditions:
General Conditions
•
Unscheduled delays due to rain, underground obstructions, additional
regulatory compliance, additional work requests, and the like may result in
additional costs.
• Restrictions on the hours when work can be performed do not impact the
proposed work progress.
• Utility lines, piping, conduit, and underground obstructions are not located in
the positions selected for the proposed boreholes.
No hazardous concentrations of chemicals will be encountered during the field
program which will require immediate remedial activities.
The California Code of Regulations, Title 23, will serve as basis for
procedures and guidelines, when appropriate, during the course of this
investigation. In addition, Title 22 CCR will serve as the reference for
determining what is a hazardous waste(s).
We would be pleased to perform services in addition to those described in this
proposal. However, additional services that are requested that are not
specifically outlined in this proposal will be billed to the Client as an
additional cost per our Fee Schedule contained herein. We also respectfully
request written notification of any additional tasks that you desire us to
perform.
Client Service Support
•
The Client will provide available reports (such as geotechnical and grading),
maps, as -built drawings, and all other documentation regarding historical land
usage and Site history, including, but not limited to, construction plans,
subsurface investigations, geophysical studies, and copies of previous
environmental studies. If "as builts" are not available or are inaccurate, EBS is
not responsible for damages of any kind from this investigation to features
including, but not limited to, subsurface structures, utilities, appurtenances,
and improvements, including consequential damages.
Community Development Commission
Proposal Number: 01676205.00
December 9, 2005
AGREEMENT FOR SERVICES
Page 15 of 15
Environmental Business Solutions
• The Client will provide ready access to the Site for field investigation
purposes and access to water and power, if required.
•
•
The Client will provide available reports, maps, as -built drawings, and all
other documentation regarding historical land usage and Site history,
including, but not limited to, construction plans, subsurface investigations,
geophysical studies, and copies of previous environmental studies.
The Client should recognize that the findings and conclusions of the limited
technical report and related correspondence are based on the subsurface
investigation conducted during this phased scope of services. The rendered
interpretation of the Site's condition is limited to the scope of this
investigation. The presence of hazardous materials on the Site in areas neither
investigated nor observed is not necessarily precluded.
The Client is responsible for the storage and disposal of any soil and waste
generated at the Site during the field activities.
environmental ousiness solutions s
Community Development Commission of National City
Preferred Fee Schedule
2005 to 2006
M SCS Engineers Cpnpm,
8799 Balboa Avenue
Suite 290
San Diego CA
92123
T 858 571 5500
F 858 571 5357
providing
economic
environmental
solutions
to the business
community
Principal
Project Director $155.00
Senior Technical Manager $145.00
Project Manager $135.00
Senior Project Professional $125.00
Project Professional $109.00
Staff Professional $ 1.00
Project Administrator $ 81.00
Associate Professional $ 75.00
Technical Editor $ 75.00
Technician $ 70.00
Designer/Drafter $ 67.00
Administrative Assistant $ 65.00
Word Processor $ 55.00
$ 55.00
•
Additional Terms and Conditions
• Scheduled labor rates include overhead, administration, and profit.
• Rates for principals of the firm may be negotiated on a project -specific basis.
• Scheduled rates are effective through June 30, 2006. Work performed thereafter is subject to a new Fee
Schedule.
• Expert witness testimony (depositions and trial) will be charged at $250.00 per hour. Preparation for
testimony and general litigation support will be charged at normal hourly rates.
• Direct project expenses (such as field equipment, subcontracted services including drilling, laboratory
analyses, etc., permits, supplies, etc.) will be charged at cost plus 15 percent. For an initial scope of work
or a scope of services change in excess of $50,000, the markup will be cost plus 10 percent. Field vehicles
will be charged at $10.00 per hour when used. Mileage in excess of 100 miles per day will be charged at
0.485 cents per mile. All other field equipment will be charged in accordance with the Fee Schedule in
effect at the time the work is performed.
• Per diem will be charged on all projects requiring overnight stays from our office. The per diem rate is
$100.00 per day per person or the federal per diem rate for the area, whichever is greater.
• Overtime will be charged at 125 percent of standard rates for weekday work in excess of 8 hours. Work
performed on holidays and weekends will be charged at 150 percent of standard rates.
• Invoices will be prepared monthly or more frequently for work in progress, unless otherwise agreed.
Invoices are due and payable upon receipt. Invoices not paid within 30 days are subject to a service charge
of 1.5 percent per month on the unpaid balance.
• Payment of EBS invoices for services performed will not be contingent upon the client's receipt of
payment form other parties, unless otherwise agreed in writing. Client agrees to pay legal costs, including
attorney's fees, incurred by SCS in collecting any amounts past due and owning on client's accounts.
The rationale and methodology for determining our Schedule of Rates is based on Manual 45c of the American
Society of Civil Engineers.
www.scsengineers. corn
www.ebsenvironmental.com
FIELD EQUIPMENT RENTAL AND REIMBURSABLE FEE SCHEDULE
ENVIRONMENTAL BUSINESS SOLUTIONS
EQUIPMENT RATE ($)
Drager Kit 25/Day
Drager Tubes 5/Tube
Flow Meter Assembly 100/Day
Gastech Meter 75/Day
Generator 60/Day
Hand Auger 60/Day
Power Hand Held Auger 100/Day
Tube, Caps and Teflon Sheets 5/Tube
Tedlar Bags 20/Bag
Organic Vapor Meter 85/Day
Moisture Meter 75/Day
Bailers - Teflon or Stainless 25/Day
Bailers - Disposable 15/Each
Bailers - PVC 20/Day
10 ml Visqueen 20' x 100' 100/Roll
Expendable Field Supplies 35/Day
(caution tape, decontamination equipment, ice, sampling jars, etc.)
Hazardous Waste Field Kit 60/Day
(for any field sampling; personal protective equipment
through Level C; protective clothing, respirators, gloves, etc.)
Hazardous Waste Field Kit (for Level A or B) Quoted/Job Specific
Vehicle 10/Hour
Miles (over 100 per day) .56/Mile
Still Camera 10/Day
Film and Processing 20/Roll
Digital Camera (includes contact sheet & color printing) 15/Day
Electronic Distance Meter 25/Day
Sampler 50/Day
Fluid/Petroleum Level Meter 75/Day
Multiple Parameter Water Quality Meter 225/Day
pH/Temp/Conductivity Meter 60/Day
Bladder Pump 150/Day
Pump Bladders, Tubing & Hardware Quoted/Job Specific
Water Sampling Pump (with controller) (Grundfos or peristaltic) 125/Day
Water Sampling Pump (DC) 50/Day
Copies .10/Page
Color Copies/Prints (8 'V2 x I I) 1.20/Page
Color Copies/Prints (11 x 17) 2.40/Page
RESOLUTION NO. 2006-05
A. RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF NATIONAL CITY (CDC)
APPROVING A COOPERATIVE REMEDIATION AGREEMENT WITH AARB, LLC FOR
REIMBURSEMENT OF EXPENSES FOR A PHASE II ENVIRONMENTAL
INVESTIGATION, PREPARATION OF A PROPERTY MITIGATION PLAN, AND
MANAGEMENT OF ENVIRONMENTAL REMEDIATION FOR THE PARK VILLAGE
SITE (APN # 555-113-04, 05, 08, 11, 12, 13) AND AUTHORIZING THE CHAIRMAN
TO EXECUTE THE AGREEMENT
WHEREAS, on February 22, 2005 the Community Development Commission entered
into an Owner Participation Agreement with AARB, LLC for the redevelopment of
parcels located at 1010 National City Boulevard, 40 West Plaza Boulevard, 25 West
11th Street, 1018 National City Boulevard, 1040 National City Boulevard, and 1031
Roosevelt Avenue; and,
WHEREAS, the parcels are located within the National City Redevelopment Project;
and,
WHEREAS, the Owner Participation Agreement requires the Community Development
Commission as the Redevelopment Agency to perform environmental investigations
and potential remediation to the site to assure that all necessary clean-up, abatement
activities and future monitoring are accomplished; and,
WHEREAS, the Owner Participation Agreement requires AARB, LLC to reimburse the
Community Development Commission for all reasonable costs incurred to carry out the
Agency's rights and obligations of said environmental investigations, clean-up,
abatements activities and future monitoring.
NOW, THEREFORE, BE IT RESOLVED, that the Community Development
Commission of the City of National City hereby approves a Cooperative Redmediation
Agreement with AARB, LLC for reimbursement of expenses for a Phase II
environmental investigation, preparation of a Property Mitigation Plan, and management
of environmental remediation for the Park Village site (APN# 555-113-04, 05, 08, 11,
12, 13).
BE IT FURTHERED RESOLVED, that the Community Development Commission of the
City of National City authorizes the Chairman to execute the Agreement.
II
II
I/
EXHIBIT 3
PASSED AND ADOPTED this 24th day of January 2006.
Nick Inzunza, Chairman
ATTEST:
Benjamin Martinez, Secretary
APPROVED AS TO FORM:
George H. Eiser, III, City -CDC Attorney
COOPERATIVE REMEDIATION AGREEMENT
FOR THE PARK VILLAGE PROJECT
NATIONAL CITY, CA
This Cooperative Remediation Agreement ("Agreement") is entered into between the
Community Development Commission of the City of National City, California, a
Redevelopment Agency ("Agency" or "CDC"), and The Beauchamp Family Trust ("Developer")
(collectively, "the Parties"), regarding property located in the "Park Village" portion of the
National City Redevelopment Project Area ("Project Area"), with reference to the following
facts and objectives:
1. RECITALS:
1.1 This Cooperative Remediation Agreement ("Agreement") concerns the
property located on two city blocks bounded by 11th Street to the South, National City
Boulevard to the east, Roosevelt Avenue to the west, and Plaza Boulevard to the north, in
National City, California consisting of 16 parcels of land; APN's 555-113-04, -05, -08,
555-113-11, -12, -13, 555-114-01, -02, -03, -04, -05, -06, -07, -11, -12, -13 ("the Site" or
"Park Village").
1.2 The Site is located within the National City Redevelopment Project
adopted on July 18, 1995.
1.3 In July 2003, Tetra Tech EM Inc. (Tetra Tech) was commissioned by the
Agency to complete a Limited Phase I Environmental Site Assessment report for the
Property ("Phase I Report").
EXHIBIT 4
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1.4 The Phase I Report indicates that there have likely been "releases" (Cal
Health & Saf. Code § 33459(f)) of "hazardous substances" (H&S Code § 33459(c) at the
Site.
1.5 On May 18, 2004, the Agency and Developer entered into an Owner
Participation Agreement to facilitate cleanup and redevelopment of the Site (the "OPA",
attached as Exhibit A and incorporated herein by reference.) The OPA requires the
Agency to perform environmental investigation and potential remediation of the Site to
assure that all necessary clean-up, abatement activities, and future monitoring are
accomplished. Developer is required to reimburse the Agency for all reasonable costs
incurred to carry out the Agency's rights and obligations pursuant to the OPA.
THEREFORE, based on and incorporating the foregoing recitals the Parties agree as follows:
2. PURPOSE OF AGREEMENT.
This Agreement is entered into in order to structure a process for the discharge of the
Parties' respective obligations for assessment and remediation, as may be required by a
regulatory agency, of hazardous substances released on, in or under the Site.
3. ANTICIPATED ENVIRONMENTAL ACTIVITIES.
3.1 The Agency's environmental obligations are anticipated to include Site
assessment, remediation, and groundwater monitoring as may required by state and local
law. The Parties acknowledge the potential need for onsite consulting services to identify
and segregate and properly dispose of any soils which may be impacted by
contamination. The Parties further acknowledge the potential need to assess, monitor,
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and remediate groundwater contamination resulting from the present and historical
operations of a dry cleaning facility on the Site.
3.2 In order to fulfill the Agency's environmental obligations, the Agency
anticipates, and Developer agrees to, the following schedule of performance:
3.2.1 The Agency shall seek environmental oversight from an
appropriate regulatory agency ("Regulatory Agency") with authority to determine
whether Site investigations and remediation are adequate and comply with state
and local laws, ordinances, regulations, and standards.
3.2.2 The Agency shall hire an environmental consultant ("Consultant")
pursuant to Section 5, below, to prepare a proposed work plan that encompasses
the Site and outlines a process for mitigation through the use of a Property
Mitigation Plan ("PMP") developed in coordination with the Site Improvement
proposals.
3.2.3 Developer shall review the proposed PMP and submit comments,
if any, within thirty (30) days of receipt. The Agency shall consider, and use its
best efforts to incorporate, all comments and revisions which may be reasonably
requested by Developer. If the Agency and Developer cannot agree with regard
to the proposed scope of the PMP, the Parties agree to meet with the Regulatory
Agency to make a good -faith attempt to resolve such differences before revoking
this Agreement. The Parties agree that no work plan shall require investigative or
remedial work in excess of what is required for the Project.
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3.2.4 The Agency shall submit the PMP to the Regulatory Agency for
approval. Upon approval by the Regulatory Agency, the Agency shall implement,
or cause to be implemented, the PMP.
3.2.5 The Agency will continue, or cause to be continued, all necessary
environmental investigation, remediation, and monitoring required to obtain a
"No Further Action" letter, or "Certificate of Completion", or letter of similar
effect, from the Regulatory Agency.
4. COOPERATION AND REIMBURSEMENT FOR ENVIRONMENTAL COSTS.
4.1 The activities outlined in Section 3, above, shall be contracted for by
Agency and Developer shall reimburse the Agency for all costs incurred by the Agency
for these activities.
4.2 Agency shall submit to Developer tenders for reimbursement as such costs
are incurred. The tenders will include supporting invoices documenting the costs
incurred. Agency will submit the tenders to: Sandra Brower, Esq., Sullivan Wertz
McDade & Wallace, 945 Fourth Avenue, San Diego, California 92101.
4.3 Developer shall reimburse the Agency within thirty (30) days of receiving
the tender. Checks shall be made payable to The Community Development Commission
of the City of National City. Checks will be sent c/o Ms. Patricia Beard, Community
Development Commission of the City of National City, 140 East 12th Street, Suite B,
National City, CA 91950. Late payments will accrue interest at a rate of 6% per annum.
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4.4 Upon receipt of the tender described in Section 4.2, Developer will notify
the Agency of any disputes regarding any of the claimed costs in writing to Richard
Opper, Esq., Opper & Varco LLP, 225 Broadway, Suite 1900, San Diego CA 92101,
facsimile # 619-231-5853, within fifteen (15) days of receipt of the tender. In the case of
a dispute, Developer will first pay the full amount of any disputed invoice, but will
identify the specific costs in dispute. The Parties agree to first work together to try to
informally resolve any disputes. If such informal negotiations fail, the Parties may then
resort to either mediation or litigation as means to enforce this Agreement and the OPA.
The Parties further agree that the time within which Agency must make claims to seek
the indemnification contemplated by this Agreement (including enforcement) of this
Agreement is tolled from the execution of this Agreement, and that time -barred defenses
by Developer are waived until all costs have been paid by Developer to the Agency.
4.5 To the extent practicable, the Agency shall separately account for and
allocate all costs incurred for the work described in Section 3, above, on a parcel by
parcel basis. The Agency will use its best efforts to seek cost recovery of all costs from
each "responsible party", as appropriate, and will consult with Developer prior to
settlement with such party.
4.6 Developer understands that if Developer is found to be a "responsible
party" in connection with all or any portion of the Site, Developer may be held
responsible for paying for the remediation of all or a portion of the Site.
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5. SELECTION OF ENVIRONMENTAL CONSULTANT
The Parties initially agree that Environmental Business Solutions (EBS) will continue to
provide consulting services for the Property, including the environmental investigation and
remediation work contemplated by this Agreement. Should the Parties determine that it is in
their mutual best interest to terminate the services of EBS, and retain other consulting support,
the Parties agree to work cooperatively on the selection of a new environmental consultant. In
the event that the Parties can not agree on a mutually acceptable consultant, Agency reserves the
right to assume the work with the consultant of their choice, and seek all costs recoverable under
this Agreement and the OPA.
6. SHARING DATA.
Upon request, the Parties agree to share all environmental reports and data they may
currently possess within fourteen (14) days of executing of this Agreement, and further agree to
share any reports and data they may obtain in the future concerning environmental conditions at
and about the Property within fourteen (14) days of receipt.
7. REGULATORY OVERSIGHT.
7.1 It is the intent of the Parties that all work performed pursuant to this
Agreement will be subject to oversight by appropriate regulatory authorities, and will be
performed in compliance with applicable laws.
7.2 Agency and Developer agree to provide each other with a copy of any
written communication they may issue to or receive from any regulatory agency
regarding the environmental condition of the Site within five (5) business days of
issuance to or receipt from any regulatory agency.
C:\WINNT\Temporary Internet Files\OLK4D\Beauchamp CRA6
DOC
8. PARTIES' RIGHTS OF CONTRIBUTION.
8.1 Except as provided in Section 8.2 below, Developer and Agency reserve
all rights to initiate cost recovery litigation against any and all other parties responsible
for the release(s) of hazardous substances.
8.2 The Parties agree to cooperate in seeking cost -recovery from the Henschel
Trust, the current owner of APN 555-113-04, a parcel subject to acquisition for the
Project. Agency will submit a claim and a proposed settlement agreement to the
Henschel Trust after consulting with Developer.
9. EFFECTIVE DATES.
This Agreement will become effective on the date it is signed by both Parties. Unless
revoked as provided above, this Agreement will remain effective until the Agency or Developer
has received a No Further Action, or letter of similar effect from the Regulatory Agency
overseeing cleanup of the Property.
10. NO ASSIGNMENT.
Developer shall not assign its rights or benefits under this Agreement without the prior
written consent of the Agency.
11. TIME.
Time is of the essence as to all dates and periods of performance contemplated by this
Agreement.
12. RELATIONSHIP OF AGREEMENT TO THE OPA.
The purpose of this Agreement is to detail performance of the assessment and
remediation of the Site and is not intended to alter the terms of the OPA. In the event of a
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conflict between the terms of this Agreement and the OPA, the terms and conditions of the OPA
shall control.
13. NO PRESUMPTION REGARDING CONSTRUCTION
The Parties and their attorneys have cooperated in drafting and preparing this Agreement.
Consequently, the presumption that ambiguities are resolved against the drafting party shall not
apply to this Agreement.
14. SEVERABILITY.
Should any part of this Agreement be deemed illegal by a court of competent jurisdiction,
that portion of the Agreement shall be severed from the Agreement and shall not affect the
legality of the remaining portions of the Agreement.
15. NOTICE PROVISIONS.
When notice is to be given as a result of obligations arising from the Agency, it shall be
provided by mail to:
1. For the Agency:
Mr. Byron Estes
Deputy Director of Redevelopment
AGENCY of National City
140 E. Street, Suite B
National City, CA 91950
1. For Developer
Mr. Alton B. Beauchamp
[Insert]
With copy to:
Richard G. Opper, Esq.
Opper & Varco
225 Broadway, Suite 1900
San Diego, CA 92101
With copy to:
Sandra Brower, Esq.
Sullivan Wertz McDade &
Wallace
945 Fourth Avenue
San Diego, CA 92101
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16. COUNTERPARTS.
This Agreement may be executed in counterparts. A copy of this Agreement bearing the
original signature of some parties and the photocopied signatures of other Parties shall be
enforceable in the same manner as a fully executed original document.
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DOC
IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as of the
dates indicated below.
Dated:
Dated:
APPROVED AS TO FORM:
George H. Eiser, III, City Attorney
Community Development Commission
By: Benjamin Martinez, Executive Director
The Beauchamp Family Trust,
By: Alton B. Beauchamp, Trustee
By: Date:
Opper & Varco
By: Date:
Richard G. Opper, Esq.
Agency Special Counsel
For The Beauchamp Family Trust:
By: Date:
Ms. Sandra Brower
l0
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IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as of the
dates indicated below.
Dated:
Dated: ,92 -? Z_ p�S
Community Development Commission
By: Benjamin Martinez, Executive Director
e Beauchamp Family Trust -
By: Alton B. Beauchamp, Trustee
APPROVED AS TO FORM:
George H. Eiser, III, City Attorney
By: Date:
Opper
By: �/: �1�1.�.►�j�'
Richard •pper, Esq.
Agency Special Counsel
For The Beauchamp Family Trust:
By:
Ms. S .T". ra Browe
Date:
Date: l- 3 Z.
C:\WINNT\Temporary Internet Files \OLK4D\Beauchamp CR10
A.DOC
IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as of the
dates indicated below.
Dated:
Dated: /a 1_- 0 S
Community Development Commission
By: Benjamin Martinez, Executive Director
e Beauchamp Family
By: Alton B. Beauc Trustee
APPROVED AS TO FORM:
George H. Eiser, III, City Attorney
By: Date:
By:
Richard ( . Opper, Esq.
Agency Special Counsel
For The Beauchamp Family Trust:
By:
Ms. an • Brower
Date:
Date: j-3 06
C:\WINNT\Temporary Internet Files \OLK4D\Beauchamp CRA.DOC
IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as of the
dates indicated below.
Dated:
Dated: .
APPROVED AS TO FORM:
George H. Eiser, III, City Attorney
Community Development Commission
By: Benjamin Martinez, Executive Director
e Beauchamp Family T
By: Alton B. Beauch. rustee
By: Date:
Opper
By:
Richard G. Opper, Esq.
Agency Special Counsel
For The Beauchamp Family Trust:
By:
Ms. San• ra Brower
Date: I/ 49
Date: /-3 - G
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COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
January 24, 2006
AGENDA ITEM NO. 4
TO: CHAIRMAN AND BOARD MEMBERS
FROM: BENJAMIN MARTINEZ, EXECUTIVE DIRECTOR
VIA: PATRICIA BEARD, INTERIM REDEVELOPMENT MANAGER 91.1
SUBJECT: REPORT: UPDATE ON SELECTION PROCESS FOR CLEVELAND
AVENUE INDUSTRIAL PROJECT
Recommendation:
Community Development Commission staff recommends that the Community
Development Commission Board:
RECEIVE AND FILE this Report on the Selection Process for the Cleveland
Avenue Industrial Project; and,
CONSIDER DIRECTING staff to prepare an Exclusive Negotiating Agreement
with a selected developer.
Fiscal Impact:
There is no fiscal impact as a result of this report.
Environmental Impact:
CEQA is not applicable.
Selection process to date:
On June 14, 2005, the Community Development Commission approved a Date of
Valuation with Pacific Steel, Inc. for the acquisition of property in the 1700 block of
Cleveland Avenue in the National City Harbor District. On July 12, 2005, the
Community Development Commission adopted a Resolution of Necessity for the
acquisition of properties owned by BNSF Railroad and currently leased by Pacific Steel,
Community Development Commission
January 24, 2006
Agenda Item No. 4
Page 1 of 4
Inc. in the same block of Cleveland Avenue. The purchase of the properties is currently
being negotiated.
Subsequently the Community Development Commission issued a Request for
Qualifications for the Cleveland Avenue Industrial Project. Proposals in response to the
Request for Qualifications were due on September 1, 2005. Ten (10) proposals, listed
alphabetically, were received from:
• The Charles Company
• Lankford/Phelps
• McMillan Land Company
• Meridian Development
• MRW Group
• Oliver McMillan
• Pacifica
• Paladin Partners
• Trammel Crow
• Voit Development
On September 13, 2005 the Community Development Commission selected a
Community Development Commission Sub -Committee including Chairman Nick
Inzunza, and Commissioner Frank Parra. The Sub -Committee, along with staff
members Ben Martinez, Byron Estes and Patricia Beard, ranked the firms and invited
seven firms (7) to interview. One firm, McMillan Land Company, withdrew from the
process. The six (6) remaining firms were interviewed, leading to the selection of 3
finalist firms, listed alphabetically:
• The Charles Company
• Trammel Crow
• Voit Development
Selection Criteria:
The selection criterion as published in the Request for Qualifications is as follows:
Developer/Development Team Characteristics:
• Experience in remediating, developing, marketing and selling contaminated
properties in urban California settings;
• Experience in developing projects in a redevelopment area and/or developing
projects in a public/private partnership;
• Demonstrated ability to develop a project which is an asset and a "correct fit" with
the Community Development Commission's redevelopment goals;
• Appropriateness of the business transaction proposed by the developer or
development team; and,
Community Development Commission
January 24, 2006
Agenda Item No. 4
Page 2 of 4
• Commitment to using National City -based vendors and suppliers for materials,
goods and services when possible.
Financial Resources and Project Financing:
• Demonstrated ability to provide project funding, including current relationships
with major lenders and past funding experience with contaminated projects;
• Ability to provide sufficient project equity to demonstrate commitment to the
success of the project and to satisfy conventional lender requirements; and,
■ Ability of design team to focus on the unique characteristics of the northern
Harbor District and to set a tone for neighborhood redevelopment.
Project Architecture/Planning Design:
• Demonstration of architectural and urban design experience on projects similar in
quality and scale to the proposed project;
• Design experience with projects in a variety of urban settings;
■ Experience with development sites that require working with significant site
design and engineering constraints; and,
• Ability of design team to focus on the unique characteristics of the northern
Harbor District and to set a tone for neighborhood redevelopment.
The Selection Committee found that the three finalists all met the criteria listed above
and were qualified to be considered for an Exclusive Negotiating Agreement for the
Cleveland Avenue Industrial Project. Of particular importance to the Committee were
candidates' experience with "brownfield" (contaminated site) redevelopment and
experience with projects with a high level of public involvement. The Committee
decided to allow all three of the finalists to make presentations before the Community
Development Commission Board for final selection.
Other pertinent information:
Candidates responding to the RFQ were asked to provide a variety of information,
including references, a list of recent redevelopment projects and information on any
litigation, whether voluntary or involuntary, related to a redevelopment project within the
last three years. Upon reference checks, CDC staff learned that a principal of the
Charles Company has been involved in litigation with the Los Angeles Community
Redevelopment Agency related to a redevelopment project within the time -period
specified, however neither Trammel Crow nor Voit Development have been involved in
any litigation regarding a redevelopment project during that time period. Charles
Company did not provide information or reference the Los Angeles litigation in its
Statement of Qualifications. When asked about the case, Ms. Sandra Magana stated
that the case related to a condemnation action and referred staff to an attorney for
further information.
Community Development Commission Agenda Item No. 4
January 24, 2006 Page 3 of 4
With this, Community Development Commission staff recommends that the Community
Development Commission Board receive and file this Report on the Selection Process
for the Cleveland Avenue Industrial Project and consider directing staff to prepare an
Exclusive Negotiating Agreement with a selected developer.
ATTACHMENTS:
EXHIBIT 1 - Request for Qualifications for the Cleveland
Avenue Industrial Project
Community Development Commission
January 24, 2006 Agenda Item No. 4
Page 4 of 4
REQUEST FOR QUALIFICATIONS
CLEVELAND AVENUE INDUSTRIAL PROJECT
EXECUTIVE SUMMARY
The National City Community Development Commission (CDC) is seeking an
accomplished "Brownfield" development team to partner in the redevelopment of
the above -shown site on Cleveland Avenue between 14th and 18th Streets. The
9.63 acre site is zoned Medium Manufacturing Coastal Zone. It is located in the
Harbor District sub -area of the National City Redevelopment Project. The site is
contaminated and subject to a corrective order from the Department of Toxic
Substances Control.
The CDC is seeking a development team which can create a project that will
accomplish the following:
• Environmental remediation
• The design of a state of the art stormwater management system
• Feasibility study and design for the redevelopment of the existing
occupant industry, Pacific Steel, Inc., to a footprint not to exceed three (3)
acres with ingress and egress off 18tStreet and interior truck stacking
■ Feasibility study, design and construction of a new state of the art Public
Works Center for the City of National City on a turn key basis
EXHIBIT 1
• Redevelopment of parcels fronting on Cleveland Avenue, featuring depths
of at least 115 feet, to new light to medium industrial uses.
The CDC views redevelopment of this site as critical for several reasons
including: improving the health and safety of the community through the clean
up of contamination and implementation of best management practices for
stormwater, air quality and noise control, eliminating visual blight, creating high
paying jobs that allow National City and South Bay residents a satisfactory
standard of living, and relocating the Public Works Center from its existing site to
clear that site for housing development including affordable housing.
The successful development team will have significant experience in the clean
up and redevelopment of contaminated sites within urban areas and extensive
experience working with regulatory agencies. Experience completing industrial
projects and projects in coastal zones is preferred. The redevelopment of this
site is seen as leading the way for the redevelopment of the northern Harbor
District.
PROCESS FOR DEVELOPER SELECTION
This RFQ requests prospective respondents to submit sufficient information
regarding their development expertise, approach to development, and financial
capability to enable the Community Development Commission of National City
(CDC) to select a development team as a partner in the redevelopment of
industrial acreage within National City. CDC is responsible for a wide range of
activities including property acquisition and disposition, working with qualified
developers and property owners on rehabilitation or new developments and
construction or rehabilitation of public improvements and facilities. CDC works
closely with the National City Development Services Departments to facilitate
redevelopment projects in the city.
CDC intends to enter into an Exclusive Negotiation Agreement ("ENA") with the
best qualified developer proposing a property development plan meeting the
CDC's redevelopment objectives. In order to maximize the potential for
developing a deal structure that provides the greatest benefit to the CDC, the CDC
will consider sale or lease of the sites, joint ventures, Agency participation, and/or
a deferred return. The purpose of the ENA is to enable the CDC and the proposed
development team to develop an approvable Disposition and Development
Agreement, which will detail the terms of this transaction.
The developer or development team selected to participate with the CDC will need
to meet all applicable city, agency, local, state and federal requirements. The
developer or development team selected will work primarily with CDC staff, but
approval authority rests with CDC Board.
Proposals will be evaluated for timeliness, completeness, developer
qualifications and compatibility with CDC objectives. Following this evaluation a
short list of development teams to be interviewed with be created and
appointments for interviews scheduled. The interviews will allow for the creation
of a list of finalists for selection. At that point, further questions may arise or
information requested. Following is an anticipated schedule for the process.
The "Responses Due" date is fixed and late arriving proposals will not be
considered. Should there be a delay in any stage of the selection process, all
proposing teams under active consideration will be notified of a new schedule.
• Responses due: 4:00 p.m. on September 1, 2005
• Short list notification: September 7, 2005
• Development team interviews: September 8 -16, 2005
• Reference/Projects checks: September 19 - 23, 2005
• Follow up inquiries if necessary: September 26 - 30, 2005
• Selection/ENA consideration: CDC Board meeting of October 25, 2005
The National City Community Development Commission reserves the right to
reject all proposals. The awarding of a development agreement is not
guaranteed.
NATIONAL CITY OVERVIEW
National City, incorporated in 1887, is the second oldest city in San Diego County
and has a rich history in the development of the region. This history is evidenced
by the Community Development Commission restoration and preservation of
such sites as the Transcontinental Depot, Granger Music Hall, Brick Row, the
Kimball House and the Stein Farm. In addition, there are numerous restored
Victorian era "grove" homes that dot the community. Prior to World War II
National City had numerous citrus and olive groves and a major rail freight
terminal.
National City has 9.2 square miles of land area and is surrounded by the City of
San Diego, San Diego Bay and the City of Chula Vista. The San Diego Unified Port
District and United States Navy occupy most of the bay frontage. The National
City Terminal is the largest importer of vehicles on the West Coast.
The current population is estimated to be 63,000, however, due to business
activities, the number of people in the community more than doubles that each
day. NASSCO shipbuilders and the United States Navy are the largest
employers, followed by Paradise Valley Hospital and Medical Center.
Additionally, numerous businesses employing between 100 to 500 persons
support the area's economy. These companies include: Pasha Company (auto
importers), Dixieline Company (wood products), Knight & Carver (boat builders),
Pacific Defense Systems, Reliance Steel Corp., CP Manufacturing and the
McMillin Company.
The majority of the population is under the age of 35 with a large share of
children 14 and younger and young adults between 20 and 34. The ethnicity is
Hispanic at 57% of the total, the Asian -Pacific Islanders at 20%; White 15% and
African -American 8%. The household income level is below the region -wide
median, but is slightly above the Central San Diego median. The household
median income is 68% of the region wide median.
National City's market profile shows that within a 10 mile radius of National City
the median income exceeds the regional average. Communities within this area
include: Chula Vista (Bonita, Eastlake), Paradise Hills, Encanto, and
Shelltown/Golden Hill communities of the City of San Diego.
Downtown San Diego is ten minutes north and the region's international airport,
Lindbergh Field, is fifteen minutes from any point in the city. The United States
Border with Mexico is located 15 miles south. Four freeways transverse the city
and provide unparalleled access: 1-5 on the west; 1-805, on the east; 1-15 on the
north and State Route 54 on the south side. The San Diego Trolley passenger
system provides service along Interstate 5 and into other parts of the region.
The National City Redevelopment Project area comprises virtually all of the City
west of 1-805 to the Tidelands controlled by the Port of San Diego.
THE HARBOR DISTRICT
The 316-acre Harbor District was added to the Redevelopment Project area in
1995 and is a key location for many redevelopment activities currently. At the
southern end of the sub -area a transformation of the area from industrial to
tourism/recreation uses is underway. Current projects include the 250 slip
National City Marina, the National City Aquatic Center at Pepper Park, and
Marina Gateway — a multi -developer mixed use project being developed at the
entrance to 1-5 at Bay Marina Drive. Marina Gateway will include a 173-room
hotel, restaurants, office and conference space, a 40-unit live -work mixed use
project, and a yet -to -be -planned retail -commercial project. The existing Historic
Railcar Plaza and Historic National City Depot are focal points for this area.
Developers participating in these projects include MRW Group, Sycuan Tribal
Development, Latino Builders and The Olson Company. During 2005-2007, the
CDC will construct a variety of streetscape improvements on Bay Marina Way to
beautify and brand the area as the Gateway to the National City's Harbor
District.
The northern section of the Harbor District is occupied by a variety of medium to
heavy industrial uses, as well as commercial and a few residential properties.
This year, the CDC is completing a US Environmental Protection Agency funded
assessment of all properties in this portion of the District. Phase I assessments
of all of the properties have been completed and will soon be accessible on the
internet. The redevelopment of the western Cleveland Avenue blocks from 23r —
20th Streets by Motivational Systems, Incorporated was completed this summer.
The CDC views the Pacific Steel site, a major project site within this portion of
the District, as pivotal to creating a vision for redevelopment of the northern
Harbor District as a whole.
SITE AVAILABLE FOR DEVELOPMENT
The 9.63-acre site comprises most of a large city block located west of Cleveland
Avenue and east of the BNSF railroad tracks in the National City Harbor District.
It is immediately accessible from Interstate 5 at the Civic Center/Harbor Drive
exit and easily accessible from the Bay Marina Drive/Mile of Cars Way exit. The
site is 10 minutes from downtown San Diego and 10 minutes from the Port of San
Diego's 10th Street Marine Terminal. The properties surrounding the project site
are primarily industrial in character, with some retail and residential uses.
The site is irregularly shaped and elongated measuring approximately 1,300 feet
in width and 430 in depth at its deepest point. Currently it contains a main office
building, several mechanics/welding shops and several small storage buildings.
Approximately 50 percent of the site is paved. The remainder is exposed soil
surfaces and stockpiled contaminated soil. The property historically has been
used for oil storage and refinery operations, auto dismantling and shredding and
currently is used for metal recycling. An SDGE electrical sub -station once stood
on the site. At its lowest point, the site is virtually at sea -level and flooding has
been an issue during extremely high tide and heavy rain events.
Detailed information about the site conditions is available in the"Final Interim
Measures Work Plan" prepared for Pacific Steel, Inc by Envirologics, Inc. and on
file at the National City Public Library. Developers wishing to participate in this
project should read this document prior to submitting a proposal and
incorporate understanding of the document in their submittals. The California
Department of Toxic Substances Control serves as the lead agency for the
remediation. The CDC is currently negotiating an Environmental Oversight
Agreement to partner with DTSC in oversight activities.
APN #s included, all or in portion, for the project site are: 559-051-09, 559-051-
11, 559-051-12, 559-056-03, 559-040-46, 559-040-47, 559-040-48, 559-040-52,
559-071-04, 559-076-01, 559-076-12, 559-076-03, 559-076-06, 559-076-09, 559-
076-10.
DESIRED DEVELOPMENT
The desired development will accomplish key goals for the CDC, including:
Improved health and safety through the environmental remediation of
contaminated soils
• The development of a state of the art storm water management system to
eliminate flooding both on site and on properties north and east of the site
• The redevelopment and retention of Pacific Steel, Inc., retaining 20 local
jobs with a minimum pay scale of $11 per hour and retaining contracts
worth $45,000 per week for 35 owner/operators of 18-wheel tractor
trailers
• The elimination of visual blight by screening and/or enclosing existing
outdoor storage operations and reducing the height of such activities to a
maximum of 35 feet
• The development of a new office building for Pacific Steel, Inc.
• Improved air quality through the elimination of dust by paving and
landscaping the site and screening and/or enclosing existing outdoor
storage operations
• Reduced noise impacts to the neighborhood
• Improved traffic circulation through the accommodation of truck stacking
within the project
■ Facilitate waste reduction and increased recycling in National City and
the South Bay
■ Allow the development of a new state of the art Public Works Center for
the City of National City
• Allow the development of light - medium industrial uses on Cleveland
Avenue frontage providing increased employment opportunities in
National City and the South Bay
• Employ "Smart Growth" and "Green" development principles to the extent
feasible
The CDC desires the selected developer to
• Analyze the needs of Pacific Steel, Inc and to develop a footprint, site
plan, and development conditions for redevelopment of the facility to the
southwest corner of the site
• Analyze the needs of the National City Administration and Public Works
Department and to develop a footprint, site plan, elevations and a turn -key
proposal for construction of a new Public Works facility.
• Parcelize and develop the remainder of the Cleveland Avenue frontage as
for sale light - medium industrial properties.
SELECTION CRITERIA
A concise, professional, and complete response to this RFQ will help the CDC
identify the most qualified developer or development team and will be indicative of
the level of the respondent's commitment to the project.
CDC intends to select based on the following criteria: demonstration of expertise,
professional qualifications, quality of information submitted in response to the
RFQ, interviews, evaluation of past projects and performance, and other pertinent
factors.
The following is a guide to the criteria that will be used in evaluating proposals:
A. Developer/Development Team Characteristics:
1. Experience in remediating, developing, marketing and selling contaminated
properties in urban California settings;
2. Experience in developing projects in a redevelopment area and/or
developing projects in a public/private partnership;
3. Demonstrated ability to develop a project, which is an asset and a "correct
fit" with the CDC's redevelopment goals;
4. Appropriateness of the business transaction proposed by the developer or
development team; and
5. Commitment to using National City -based vendors and suppliers for
materials, goods, and services where possible.
B. Financial Resources and Project Financing:
1. Demonstrated ability to provide project funding, including current
relationships with major lenders and past funding experience with
contaminated projects;
2. Ability to provide sufficient project equity to demonstrate commitment to
the success of the project and to satisfy conventional lender requirements;
and
3. Ability to generate development concepts for the project that will create a
high quality, successful project, meeting CDC objectives.
C. Project Architecture/Planning/Design:
1. Demonstration of architectural and urban design experience on projects
similar in quality and scale to the proposed project;
2. Design experience with projects in a variety of urban settings;
3. Experience with development sites that require working with significant site
design and engineering constraints; and
4. Ability of design team to focus on the unique characteristics of the northern
Harbor District and to set a tone for neighborhood redevelopment.
SUBMITTAL REQUIREMENTS
Completeness of required content is important. The initial proposal must include,
and only include, the following information:
1. Development Team - Identify the Developer, Project Architect(s) and other
members of the development team or consultants who would be responsible for
implementing the proposed project(s) (name of individual, firm address, and
telephone number). Provide a very concise narrative addressing the availability of
local resources, sources and amount of cash available to developer to meet equity
requirements of the proposed project, three bank references, three business
references, total amount of development work completed by developer during the
last three years, projects currently in planning or development by the developer or
principals of the development equity, developer involvement in litigation relating to
a development project either voluntary or involuntary, within the past 3 years,
capability to assure timely implementation of the proposed development.
2. Development Team Experience — Describe concisely relevant projects
completed by the developer or development team(s) and/or architect(s) (including
photographs). Include type of project, project address, unit count by type and size
of unit, completed value, lenders involved (with contact references), and
constructionlcompletion dates.
3. Development Team References - List developer or development team including
consultant references. Each member should include three professional
references (lenders, investors, major accounts, etc.), with full names, relationship
to the team member, address and telephone number. Provide a very concise
narrative identifying any development team experience in developing projects in a
redevelopment area and/or developing projects in a public/private partnership,
and providing references for the projects.
Eight (8) copies of the proposal shall be delivered not later than 4:00 p.m. on
Thursday, September 1, 2005 to:
Ms. Patricia Beard, Redevelopment Projects Manager
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
140 E. 12th Street, Suite "B"
National City, CA 91950
DUE DILIGENCE
The information provided in this RFQ is to assist respondents with information
CDC has assembled as of this preliminary stage in the process. Any respondent
which is selected will be expected to conduct its own due diligence in these
matters prior to commencement of its development. CDC will make no
representations or warranties with respect to these matters.
CONFLICTS OF INTEREST
Please note that State law makes it illegal for public officials or their employees to
participate in the making of a contract in which he or she is financially interested.
The law defines the making of a contract to include responding to RFQs. The law
further defines a public official very broadly to include members of advisory
boards that are not actual parties to the contract. Prospective respondents who
are aware of circumstances that could create a conflict of interest if a proposal
were submitted are urged to contact CDC immediately.
Questions concerning this RFQ should be directed to Patricia Beard by
telephone at (619) 336-4255 or email at pbeard@ci.national-city.ca.us.
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
January 24, 2006
AGENDA ITEM NO. 5
TO: CHAIRMAN AND BOARD MEMBERS FROM: BENJAMIN MARTINEZ, EXECUTIVE DIRECTOR (l �`
VIA: PATRICIA BEARD, INTERIM REDEVELOPMENT MANAGER b
SUBJECT: RESOLUTION NO. 2005-06: APPROVING A SETTLEMENT
AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT
COMMISSION AND THE BEAUCHAMP FAMILY TRUST AND
AUTHORIZING THE CHAIRMAN TO EXECUTE THE AGREEMENT
Recommendation:
Community Development Commission staff recommends that the Community
Development Commission Board:
ADOPT Resolution No. 2006-06 approving a Settlement Agreement by and
between the Community Development Commission and the Beauchamp Family
Trust and authorizing the Chairman to execute the agreement.
Fiscal Impact:
This Settlement Agreement would require the Beauchamp Family Trust to pay the
Community Development Commission $25,000 in addition to $40,000 previously paid
for past environmental costs for the Education Village project located at 701 National
City Boulevard and to reimburse the Community Development Commission for fifty -
percent (50%) of future environmental costs associated with future environmental costs
for the project.
Environmental Impact:
The action is not subject to CEQA.
Community Development Commission
Agenda Item No. 5
January 24, 2006 Page 1 of 2
Background:
the Beauchamp Family Trust was a property owner owning land within the footprint of
the Education Village project located at 701 National City Boulevard. As a responsible
party to prior environmental contamination, a portion of the purchase price ($40,000) for
the site was withheld from the Beauchamp Family Trust per the Polanco
Redevelopment Act, to offset Community Development Commission costs for which the
Beauchamp Family Trust was responsible. As investigation and clean up continued on
the site, costs exceeded the original retention amount. This Agreement provides that
the Beauchamp Family Trust will pay the remainder of its fair share of past
environmental costs, or $25,000.
Often in redevelopment projects involving contaminated site remediation, land
transactions withholding clean up funds from property owners are settled prior to
regulatory closure of the sites. Remediation costs that outlive the property settlement
are called "future environmental costs" and create a risk that the Community
Development Commission will have to pay for costs reasonably chargeable to a
responsible party.
A dispute arose with the Beauchamp Family Trust regarding payment for these "future
environmental costs" and an Agreement was needed to insure a fair and equitable
method for the Community Development Commission to be reimbursed from the
Beauchamp Family Trust as one of the responsible parties in the transaction. This
Settlement Agreement provides that the Beauchamp Family Trust will reimburse the
Community Development Commission for fifty -percent (50%) of any future
environmental costs associated with the Education Village Project.
With this, Community Development Commission staff recommends that the Community
Development Commission Board adopt Resolution No. 2006-06 approving a Settlement
Agreement by and between the Community Development Commission and the
Beauchamp Family Trust and authorizing the Chairman to execute the agreement.
ATTACHMENTS:
EXHIBIT 1 - Resolution No. 2006-06
EXHIBIT 2 - Settlement Agreement and Mutual Release of
Claims by and between CDC and Beauchamp
Community Development Commission
January 24, 2006
Agenda Item No. 5
Page 2 of 2
RESOLUTION NO. 2006-06
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF NATIONAL CITY (CDC)
APPROVING A SETTLEMENT AGREEMENT BY AND BETWEEN THE COMMUNITY
DEVELOPMENT COMMISSION AND THE BEAUCHAMP FAMILY TRUST AND
AUTHORIZING THE CHAIRMAN TO EXECUTE THE AGREEMENT
WHEREAS, on July 27, 2000, the Community Development Commission issued a
notice to the Beauchamp Family Trust pursuant to California Health & Safety Code
Section 33459 et seq., (the Polanco Redevelopment Act) requesting that the
Beauchamp Family Trust submit a remedial action plan for hazardous substances
released on, in or under property it owned at 701 National City Boulevard; and,
WHEREAS, the Beauchamp Family Trust did not submit a proposed remedial action
plan within the sixty (60) day notice period; and,
WHEREAS, on March 11, 2003 the parties entered into a Cooperative Remediation
Agreement to structure a process for the discharge of the Beauchamp Family Trust's
reimbursement of investigation and remediation costs incurred by the Community
Development Commission as a result of contamination at the site; and,
WHEREAS, a dispute has arisen regarding the Beauchamp Family Trust's liability for
past and future environmental costs, including but not limited to claims arising out of the
March 11, 2003 Cooperative Remediation Agreement; and,
WHEREAS, this Settlement Agreement is entered into for the purpose of settling the
Community Development Commission's claims for past environmental costs and to
structure a process for the discharge of the Beauchamp Family Trust's future
environmental costs in a efficient and cost-effective manner; and,
WHEREAS, the parties desire to compromise and settle all claims relating to the
matters addressed in the Settlement Agreement including, but not limited to, claims
arising out of the March 11, 2003 Cooperation Remediation Agreement.
NOW, THEREFORE, BE IT RESOLVED, that the Community Development
Commission of the City of National City hereby approves the Settlement Agreement by
and between the Community Development Commission and the Beauchamp Family
Trust.
BE IT FURTHERED RESOLVED, that the Community Development Commission of the
City of National City authorizes the Chairman to execute the Agreement.
//
EXHIBIT 1
1
PASSED AND ADOPTED this 24th day of January 2006.
ATTEST:
Benjamin Martinez, Secretary
APPROVED AS TO FORM:
George H. Eiser, III, City -CDC Attorney
Nick Inzunza, Chairman
2
SETTLEMENT AGREEMENT AND MUTUAL RELEASE OF CLAIMS
THIS SETTLEMENT AGREEMENT AND MUTUAL RELEASE OF CLAIMS ("Agreement") is
entered into by The Community Development Commission of the City of National City
(hereinafter referred to as the "CDC"), on the one hand, and the Beauchamp Family Trust,
(hereinafter referred to as "Beauchamp"), on the other hand.
PURPOSE
This Agreement is made for the purpose of settling past claims for payment of environmental
clean up costs that the CDC has incurred at the Property and to structure a process for the
discharge of Beauchamp's responsibilities to reimburse CDC for future investigation and
remediation costs at the Property. Under the Agreement, Beauchamp agrees to pay an
additional $25,000 (and to waive any claim of entitlement to $40,000 previously withheld by the
CDC) to settle Past Environmental Costs claimed by CDC and further agrees to reimburse
CDC for fifty percent (50%) of Future Environmental Costs incurred by CDC related to the
Education Village project.
II.
DEFINITIONS
1. "Agreement" means this Settlement Agreement and Mutual Release of Claims.
2. "Claims" means any and all known claims that the CDC may have against
Beauchamp for the purpose of recovering environmental investigation and remediation costs
associated with the Contamination (as defined hereinafter) at the Site (as defined hereinafter).
Claims include, but are not limited to, any and all claims CDC may have as a result of the
March 11, 2003, Cooperative Remediation Agreement between the same parties to this
Agreement.
3. "Contamination" means "hazardous substances" as that term is defined in the
Polanco Redevelopment Act (H&SC § 33459(c)) in or on soil and/or groundwater at or in the
vicinity of the Site (as defined hereinafter) as of the date of this Agreement.
4. "Environmental Costs" means investigation and remediation costs, recoverable
under the Polanco Redevelopment Act (H&SC § 33459 et seq.), including, but not limited to,
costs to investigate, remove or remediate hazardous substances in the soil and groundwater at
the Site, analytical costs, reporting costs, and oversight costs from the County of San Diego
Department of Environmental Health ("DEH") incurred by the CDC due to the Contamination at
the Site.
5. "Past Environmental Costs" means Environmental Costs incurred by the
CDC in the period ending on August 15, 2005 as a result of the Contamination at the Site.
Education Village Project
Beauchamp/CDC Settlement
November 2005
1
EXHIBIT 2
6. "Future Environmental Costs" means Environmental Costs incurred by the
CDC after August 15, 2005 due to the Contamination of the groundwater with the dry-cleaner
solvent PCE at the Site.
7. "Parties" means the CDC and Beauchamp.
8. "Property" and "Site" mean generally the properties located at 909 and 949
Roosevelt Avenue, National City, California, Assessor Parcel Numbers 555-084-01 and 555-
084-02.
III.
UNDERLYING FACTS/RECITALS
1. On July 27, 2000, CDC issued a notice to Beauchamp (as "owner" of the
property) pursuant to California Health & Safety Code Section 33459 et seq., (the "Polanco
Redevelopment Act") requesting that Beauchamp submit a remedial action plan for hazardous
substances released on, in or under the Property within sixty (60) days of receipt of the notice.
Beauchamp did not submit a proposed remedial action plan within the sixty (60) day notice
period.
2. On March 11, 2003, the Parties entered into Cooperative Remediation
Agreement to structure a process for the discharge Beauchamp's reimbursement of
investigation and remediation costs incurred by CDC as a result of Contamination at the
Property.
3. A dispute has arisen regarding Beauchamp's liability for Environmental Costs
(including both Past Environmental Costs and Future Environmental Costs) as a result of
Contamination at the Property, including, but not limited to Claims arising out of the March 11,
2003 Cooperative Remediation Agreement.
4. This Agreement is entered into for the purpose of settling CDC's Claims for
Past Environmental Costs, and to structure a process for the discharge Beauchamp's
responsibility for Future Environmental Costs in an efficient and cost effective manner. The
Parties desire to compromise and settle all Claims relating to the matters addressed herein,
including, but not. limited to, Claims arising out of to the March 11, 2003 Cooperative
Remediation Agreement, on the terms and conditions as set forth in this Agreement.
IV.
TERMS OF SETTLEMENT AND RELEASE
IT IS HEREBY AGREED that:
1. CONSIDERATION
a. Settlement for Past Environmental
$25,000 (to settle and compromise claims
under the March 11, 2003 Cooperative
Education Village Project
Beauchamp/CDC Settlement
November2005
Costs. Beauchamp agrees to reimburse the CDC
of CDC related to the obligations of Beauchamp
Remediation Agreement) for payment of Past
2
Environmental Costs. In furtherance of this compromise and settlement, Beauchamp hereby
waives all claims to the $40,000 previously withheld under Paragraph 10 of the March 11, 2003
Cooperative Remediation Agreement (for then "future" environmental costs) and agrees to pay
the $25,000 to CDC on the following terms: the amount of $5,000 shall be paid within 10 (ten)
days of execution of this Agreement, and an additional $5,000 shall be paid every 30 (thirty)
days thereafter until the sum of $25,000 has been paid in full.
b. Cooperation and Reimbursement for Future Environmental Costs. Beauchamp
agrees to consult with the CDC on all remaining environmental activities that DEH may require
at the Site. Those activities required by DEH shall be contracted for by the CDC, and, subject to
CDC's ability to obtain cost recovery from other responsible parties, Beauchamp shall reimburse
the CDC for fifty percent (50%) of all Future Environmental Costs incurred by the CDC for the
activities required to investigate and remediate the Contamination at the Site. CDC will submit
to Beauchamp tenders for reimbursement as the Future Environmental Costs are incurred.
The tenders will include supporting invoices documenting the costs incurred. CDC will submit
the tenders to: Sandra Brower, Esq., Sullivan Wertz McDade & Wallace, 945 Fourth Avenue,
San Diego, California 92101.
Beauchamp will reimburse the CDC within thirty (30) days of receiving the tender. Checks shall
be made payable to The Community Development Commission of the City of National City.
Checks will be sent do Ms. Patricia Beard, Community Development Commission of the City of
National City, 140 East 12th Street, Suite B, National City, CA 91950. Late payments will
accrue interest at a rate of 6% per annum.
c. Disputes Regarding Environmental Costs. Upon receipt of the tender described in
paragraph IV.1.b., Beauchamp will notify the CDC of any disputes regarding any of the claimed
Future Environmental Costs in writing to Richard Opper, Esq., Opper & Varco LLP, 225
Broadway, Suite 1900, San Diego CA 92101, facsimile # 619-231-5853, within fifteen (15) days
of receipt of the tender. In the case of a dispute, Beauchamp will first pay the full amount of any
disputed invoice, and continue to pay its 50% share of Future Environmental Costs, but will
identify the specific costs in dispute. The Parties agree to first work together to try to informally
resolve any disputes. If such informal negotiations fail, the Parties may then resort to either
mediation or litigation as means to enforce this settlement. The Parties further agree that the
time within which CDC must make claims to seek the cost recovery contemplated by this
agreement (including enforcement) of this Agreement is tolled from the execution of this
Agreement, and that time -barred defenses by Beauchamp are waived until all Environmental
Costs have been paid by Beauchamp to the CDC. If the Parties proceed to litigation, the
Parties preserve all rights and defenses, with the exception of Beauchamp's agreement that its
status will be tolled such that in future litigation Beauchamp will retain its status as a
"responsible party" as a "current owner".
d. Distribution of Settlement Funds from Henschel Trust. CDC agrees to apply a credit
against Beauchamp's payment obligations under this Agreement in an amount equal to fifty
percent (50%), of any settlement funds related to past environmental costs incurred at the
Property that are obtained from pending negotiations with the Henschel Trust.
2. RELEASES OF PARTIES
Education Village Project
Beauchamp/CDC Settlement
November 2005
3
a. Releases. Upon payment of all Environmental Costs (including both Past
Environmental Costs and Future Environmental Costs) contemplated by Paragraph IV.1a
and Paragraph IV.1b, above, and receipt of a No Further Action letter or Certificate of
Completion for the Site by the DEH, the CDC hereto, on behalf of itself and, to the maximum
extent allowed by law, on behalf of its current and former agents, assigns, successors,
shareholders, partners, employees, officers, directors, predecessors, parent companies,
subsidiaries, affiliates, beneficiaries, affiliates, and attorneys, hereby fully releases and
discharges Beauchamp, its current and former agents, assigns, successors, shareholders,
partners, employees, officers, directors, parent corporations, subsidiaries, affiliates,
predecessors, trusts, beneficiaries, and attorneys from any and all Claims for Environmental
Costs (including both Past Environmental Costs and Future Environmental Costs) incurred
at the Site.
b. Limitations on Releases. The releases set forth in paragraph IV.2.a. above do not
include or apply to any rights of any of the Parties to, enforce or interpret this Agreement. In
addition, nothing set forth in this Agreement shall in any way transfer, assign, relinquish,
exonerate, compromise, abrogate, waive or release any or all of the Claims which any of the
Parties may have against any person or entity not a party to this Agreement, except to the
extent such person or entity has been released in his, her or its capacity as a current or former
agent, assign, successor, partner, employee, subsidiary, affiliate, predecessor, related entity or
attorney for one of the Parties to this Agreement.
c. No Assignment. Each of the Parties represents and warrants to each other that no
portion of any Claim, demand, cause of action, or other matter released herein has been or will
be directly assigned or transferred to any other person or entity not a party to this Agreement,
other than successors which agree to be bound to the terms of this Agreement. Each of the
Parties acknowledges that this representation is material to this Agreement, and that each is
relying upon said representation in entering into this Agreement.
3. SELECTION OF ENVIRONMENTAL CONSULTANT
Subject to termination for good cause, the Parties initially agree that Environmental Business
Solutions (EBS) will continue to provide consulting services for the Site, including the
environmental investigation and remediation work contemplated by this Agreement. Should
the Parties determine that it is in their mutual best interest to terminate the services of EBS, and
retain other consulting support, the Parties agree to work cooperatively on the selection of a
new environmental consultant. In the event that the Parties can not agree on a mutually
acceptable consultant, CDC reserves the right to assume the work with the consultant of their
choice, and seek recovery of all Future Environmental Costs incurred.
4. UNDERGROUND STORAGE TANK CLEANUP FUND
If, in the course of investigation of this Property, a previously unknown Underground Storage
Tank is discovered on the Property, it is possible that Beauchamp may be entitled to
reimbursement from the State Water Resources Control Board ("UST Cleanup Fund"). The
Parties agree that action undertaken pursuant to this Agreement will be designed in a way to
facilitate reimbursement of corrective action costs, if any such costs are incurred, as the result
Education Village Project
Beauchamp/CDC Settlement
November 2005
4
of the discovery and potential remediation of releases from an Underground Storage Tank that
may have historically contained petroleum products.
5. GENERAL PROVISIONS
a. No Admissions. The Parties expressly acknowledge that execution of this Agreement,
consent to this settlement or the payment of any monies in accordance with this Agreement
shall not be deemed to be an admission of fault or liability on the part of any of the Parties.
b. Successors and Assigns. All of the terms of this Agreement shall be binding upon,
inure to the benefit of, and be enforceable by the Parties hereto and their respective legal
representatives, successors, successors -in -title, executors and assigns.
c. Authorization to Enter Into Agreement. Each person executing this Agreement
represents and warrants that he or she has been duly authorized to execute this Agreement on
behalf of the Party and has full and complete authority to do so. Each of the Parties expressly
waives any defense to this Agreement based on any lack of authority to enter into and be
bound by the terms of this Agreement.
d. Agreement Not Admissible. This Agreement shall be deemed to fall within the broadest
protections afforded compromises and offers to compromise by California Evidence Code
section 1152, and any related provisions.
e. Governing Law. This Agreement shall be interpreted, construed, governed and
enforced under and pursuant to the laws of the State of California. Any action to enforce or
interpret regarding this Agreement shall be filed and maintained within the County of San Diego,
State of California.
f. Advice of Counsel. Each of the Parties has been or has had the opportunity to be
represented in the negotiation and preparation of this Agreement by independent legal counsel
of its own choosing. Each of the Parties further represent that he, she or it has read this
Agreement and that he, she or it is fully aware of its content and legal effect and enters into the
Agreement voluntarily, freely and without coercion. Each of the Parties agrees and represents
that, except as set forth in this Agreement, no promise, inducement, understanding,
representation, warranty or agreement has been made or relied upon in connection with the
execution of this Agreement. Each of the Parties assumes the risk of any purported mistake,
misunderstanding, misrepresentation or nondisclosure and shall have no alleged right or claim
to set aside or rescind this Agreement based thereon.
g. Entire Agreement. This Agreement supersedes the March 11, 2003 Cooperative
Remediation Agreement and constitutes the entire agreement between the Parties pertaining to
resolution of the Claims covered herein.
h. Waiver and Amendment. No breach of any provision hereof can be waived unless in
writing. Waiver of any one breach shall not be deemed to be a waiver of any other breach of the
same or any other provision hereof. This Agreement may be amended only in a writing
executed by all of the affected Parties.
Education Village Project
Beauchamp/CDC Settlement
November 2005
5
i. No Presumption Regarding Construction. The Parties and their attorneys have
cooperated in drafting and preparing this Agreement. Consequently, the presumption that
ambiguities are resolved against the drafting Party shall be inapplicable, and any such
ambiguities shall not be construed against such drafting Party.
J. Severability. If any term or provision of this Agreement is found by a court to be void
and unenforceable, that finding shall in no way affect any other provision of this Agreement or
any document to be executed concurrently herewith or the validity or enforceability of the
Agreement as a whole.
k. Attorneys' Fees and Costs. The Parties shall bear their own attorneys' fees, costs and
all other expenses (with the exception of Environmental Costs) incurred to date. Should an
action be taken to enforce or interpret the terms of this Agreement, the Parties shall bear their
own attorneys' fees unless otherwise permitted by law.
I• Parties in Interest/ No Third Party Beneficiaries. This Agreement has been made and is
made solely for the benefit of the Parties to this Agreement, and their respective successors
and assigns, and no other person or entity shall acquire or have any rights under or by virtue of
this Agreement. In addition, nothing in this Agreement is intended to release or discharge the
obligation or liability of any third persons to any of the Parties to this Agreement.
m. Notices. With the exception of those notices identified in paragraphs IV.1.b and IV.1.c,
above, all notices required or permitted under this Agreement shall be in writing (either by mail
or facsimile), and addressed to the Parties for whom it is intended at the address set forth
herein or such other address designated from time to time in writing to all other Parties:
To the Agency:
The Community Development Commission of the City of National City
c/o Opper & Varco LLP
Richard Opper, Esq.
225 Broadway, 19th Floor
San Diego, CA 92101
Telephone: (619) 231-5858
Facsimile: (619) 231-5853
To Beauchamp:
The Beauchamp Family Trust
do Sandra Brower, Esq.
Sullivan Wertz McDade & Wallace
945 Fourth Avenue
San Diego, CA 92101
Telephone: (619) 223-1888
Facsimile: (619) 696-9476
Any notice so delivered or served shall be deemed made upon receipt by the Parties served or
Education Village Project 6
Beauchamp/CDC Settlement
November 2005
to whom notice is so given. Notice may also be made by electronic mail transmission or by
facsimile transmission and deemed made as of the date and time of that transmission, if said
notice is followed up by duplicate written notice sent by certified United States mail, return
receipt requested, postage prepaid, prior to the close of the next business day.
n. Counterparts. This Agreement may be executed in any number of separate
counterparts, each of which shall be deemed an original but all of which when taken together
shall constitute one and the same instrument.
IN WITNESS WHEREOF, the Parties enter into this Agreement which shall become effective
and fully -enforceable in all respects as of the latest date that this Agreement is fully -executed
by all the Parties.
Dated:
THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL
CITY
By:
Name: Benjamin Martinez
Title: Executive Director
Dated:
THE BEAUCHAMP FAMILY TRUST
By:
Name: Alton B. Beauchamp, Trustee
on behalf of the Beauchamp Family Trust
APPROVED AS TO FORM:
RICHARD G. OPPER
OPPER & VARCO LLP
SPECIAL ENVIRONMENTAL COUNSEL TO THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
Education Village Project
Beauchamp/CDC Settlement
November 2005
7
SANDRA BROWER
SULLIVAN WERTZ MCDADE & WALLACE
COUNSEL TO THE BEAUCHAMP FAMILY TRUST
to whom notice is so given. Notice may also be made by electronic mail transmission or by
facsimile transmission and deemed made as of the date and time of that transmission, if said
notice is followed up by duplicate written notice sent by certified United States mail, return
receipt requested, postage prepaid, prior to the close of the next business day.
n. Counterparts. This Agreement may be executed in any number of separate
counterparts, each of which shall be deemed an original but all of which when taken together
shall constitute one and the same instrument.
IN WITNESS WHEREOF, the Parties enter into this Agreement which shall become effective
and fully -enforceable in all respects as of the latest date that this Agreement is fully -executed
by all the Parties.
Dated:
THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL
CITY
By:
Name: Benjamin Martinez
Title: Executive Director
Dated:
_ , - c3 S
THE BEAUCHAMP FAMILY TRUST
By:
N Alton B. Beaucham ustee
behalf of the Beauch Family Trust
APPROVED AS TO FORM:
RICHARD G. OPPER
OPPER & VARCO LLP
SPECIAL ENVIRONMENTAL COUNSEL TO THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
Education Village Project
Beauchamp/CDC Settlement
November 2005
NDRA BROWER
SULLIVAN WE MCDADE & WALLACE
COUNSEL + THE BEAUCHAMP FAMILY TRUST
to whom notice is so given. Notice may also be made by electronic mail transmission or by
facsimile transmission and deemed made as of the date and time of that transmission, if said
notice is followed up by duplicate written notice sent by certified United States mail, return
receipt requested, postage prepaid, prior to the close of the next business day.
n. Counterparts. This Agreement may be executed in any number of separate
counterparts, each of which shall be deemed an original but all of which when taken together
shall constitute one and the same instrument.
IN WITNESS WHEREOF, the Parties enter into this Agreement which shall become effective
and fully -enforceable in all respects as of the latest date that this Agreement is fully -executed
by all the Parties.
Dated:
THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL
CITY
By:
Name: Benjamin Martinez
Title: Executive Director
Dated:
,/
-�
"..1..
- 0
THE BEAUCHAMP FAMILY T UST
By:
S
Na [ton B. Beauc , Trustee
ehalf of the Bea amp Family Trust
APPROVED AS TO FORM:
RICHARD G. OPPER
OPPER & VARCO LLP
SPECIAL ENVIRONMENTAL COUNSEL TO THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
Education Village Project
Beauchamp/CDC Settlement
November 2005
7
RA BROWER
SULLIVAN WE MCDADE & WALLACE
COUNSEL • THE BEAUCHAMP FAMILY TRUST
to whom notice is so given. Notice may also be made by electronic mail transmission or by
facsimile transmission and deemed made as of the date and time of that transmission, if said
notice is followed up by duplicate written notice sent by certified United States mail, return
receipt requested, postage prepaid, prior to the close of the next business day.
n. Counterparts. This Agreement may be executed in any number of separate
counterparts, each of which shall be deemed an original but all of which when taken together
shall constitute one and the same instrument.
IN WITNESS WHEREOF, the Parties enter into this Agreement which shall become effective
and fully -enforceable in all respects as of the latest date that this Agreement is fully -executed
by all the Parties.
Dated:
THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL
CITY
By:
Name: Benjamin Martinez
Title: Executive Director
Dated:
A
c—
THE BEAUCHAMP FAMILY TRUST
By: ..� 1 .,
N- e: Alton B. Beauch. , Trustee
n behalf of the Beau.- .mp Family Trust
APPROVED AS TO FORM:
RICHARD G. OPPER v v ""' i BROWER
OPPER & VARCO LLP SULLIVAN WER ► CDADE & WALLACE
SPECIAL ENVIRONMENTAL COUNSEL TO THE COUNSEL T• HE BEAUCHAMP FAMILY TRUST
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
Education Village Project
Beauchamp/CDC Settlement
November 2005
7
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
January 24, 2006
AGENDA ITEM NO.6
TO: CHAIRMAN AND BOARD MEMBERS
FROM: BENJAMIN MARTINEZ, EXECUTIVE DIRECTOR
SUBJECT: RESOLUTION NO. 2006-07: APPROVING THE HEALTH AND SAFETY
CODE SECTION 33433 REPORT AND REUSE ANALYSIS FOR THE
PARK VILLAGE PROJECT OWNER PARTICIPATION AGREEMENT
Recommendation:
Community Development Commission staff recommends that the Community
Development Commission of the City of National City:
ADOPT Resolution No. 2006-07 approving the Health and Safety Code Section
33433 Report and Reuse Analysis for the Park Village Project Owner
Participation Agreement.
Fiscal Impact:
None with this action.
Environmental Impact:
A Program Environmental Impact Report has been adopted for the Downtown Specific
Plan, in accordance with CEQA Guidelines. The project has been determined to be
consistent with the Downtown Specific Plan. Pursuant to Section 15182(a) of the
California Environmental Quality Act, the project is deemed exempt from further CEQA
review.
Background:
The Community Development Commission, at their meeting of February 22, 2005,
approved an Owner Participation Agreement with Beauchamp Family Trust for
development of the Park Village Project. In addition, a First Amendment dated
December 13, 2005 provided for a re -assignment of the development entity from the
Community Development Commission
January 24, 2006
Agenda Item No. 6
Page 1 of 2
Beauchamp Family Trust to the AARB, LLC, a California limited liability company owned
by the Beauchamp Family Trust. The Beauchamp Family Trust will remain fully in
control of the AARB, LLC, and will not be released of its obligations under the Owner
Participation Agreement as a result of this re -assignment.
In order to proceed with potential Redevelopment Agency acquisition of property for the
Project, State law mandates the adoption of the Health and Safety Code Section 33433
Report and Reuse Analysis. The Health and Safety Code Section 33433 Report is
attached for review.
With this, Community Development Commission staff recommends that the Community
Development Commission Board adopt Resolution No. 2006-07 approving the Health
and Safety Code Section 33433 Report and Reuse Analysis for the Park Village Project
Owner Participation Agreement.
ATTACHMENTS:
EXHIBIT 1 — Resolution No. 2006-07
EXHIBIT 2 — 33433 Report and Reuse Analysis
Community Development Commission Agenda Item No. 6
January 24, 2006 Page 2 of 2
RESOLUTION NO. 2006-07
A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL CITY (CDC)
APPROVING THE HEALTH AND SAFETY CODE SECTION 33433
REPORT AND REUSE ANALYSIS FOR DEVELOPMENT OF THE
PARK VILLAGE PROJECT; MAKING CERTAIN FINDINGS IN
CONNECTION HEREWITH; AND AUTHORIZING THE
TRANSMITTAL OF SAID REPORT TO THE CITY COUNCIL
WHEREAS, the Community Development Commission of National City is a
public body, corporate and politic, organized and existing under the California
Community Redevelopment Law (Health & Safety Code Section 33000 et seq.);
and,
WHEREAS, pursuant to the California Community Redevelopment Law (Health
& Safety Code Section 33000 et seq.), on February 1, 2005, the City Council of
National City approved and adopted the Downtown Specific Plan for Downtown
National City; and,
WHEREAS, the Downtown Specific Plan calls for a consistency review process
to ensure that development within Downtown National City is in conformance
with the goals established by the City Council of National City; and,
WHEREAS, in furtherance of the objectives of the California Community
Redevelopment Law, the Community Development Commission desires the
redevelopment of certain real property within Downtown National City, bordering
National City Boulevard on the East and Roosevelt Avenue on the West and
between 11th Street on the South and Plaza Boulevard on the North for a
residential, retail mixed -use and public parking project; and,
WHEREAS, AARB, LLC a California limited liability company owns in fee certain
of the parcels which comprises the Site; and,
WHEREAS, Community Development Commission staff has negotiated a
Disposition and Development Agreement including attachments thereto with
AARB, LLC, for the Community Development Commission's disposition of
portions of the Site to AARB, LLC, if necessary, and subject to the discretion of
the Community Development Commission; and,
WHEREAS, pursuant to the terms of the Disposition and Development
Agreement, AARB, LLC shall construct two hundred twenty-seven (227)
condominium residential units, fourteen thousand (14,000) square feet of retail
space and approximately three hundred fifty-two (352) residential parking
spaces, and fifty (50) retail parking spaces, all other on -site improvements
EXHIBIT 1
1
located inside of the face of the curbs surrounding the improvements, as required
through the City of National City's Design Review; and,
WHEREAS, Community Development Commission staff has presented the draft
Disposition and Development Agreement to the Community Development
Commission Board, and City Council for consideration.; and,
WHEREAS, the California Community Redevelopment Law (Health & Safety
Code Section 33000 et seq.), at Health and Safety Code Section 33433, requires
that (i) the Community Development Commission prepare a Summary Report
concerning the Community Development Commission's proposed disposition of
the Site as set forth in the Disposition and Development Agreement, (ii) the.
Community Development Commission Board and the City Council conduct a
noticed joint public hearing with respect to the Disposition and Development
Agreement, and (iii) the approval of the Disposition and Development Agreement
be set forth in a resolution making certain findings and determinations as set
forth herein below; and,
WHEREAS, pursuant to the requirements of the California Community
Redevelopment Law (Health & Safety Code Section 33000 et seq.), a Summary
Report and Reuse Analysis have been prepared by the Community Development
Commission's economic consultant, Keyser Marston Associates, Inc,; and,
WHEREAS, a joint public hearing of the Community Development Commission
Board and City Council has been noticed and conducted in accordance with
applicable requirements of law; and,
WHEREAS, at the joint public hearing the Community Development Commission
and City Council each considered all of the information, testimony, and evidence
presented, including but not limited to the Disposition and Development
Agreement in the form presented by Community Development Commission staff
concurrent with consideration of the Resolution, the Community Development
Commission staff report, the Summary Report, and the oral and written testimony
received from persons wishing to appear and be heard concerning the proposed
Disposition and Development Agreement.
NOW, THEREFORE, BE IT RESOLVED, that:
1. Based on all the information, testimony, and evidence presented at
the joint public hearing, including but not limited to the Disposition and
Development Agreement and the information and evidence set forth in the
Community Development Commission staff report, the Summary Report, and the
oral and written testimony received, the Community Development Commission
finds and determines as follows:
2
a. That the above Recitals are true and correct and are
incorporated herein.
b. That the Disposition and Development Agreement
effectuates the purposes of the Community Redevelopment Law (Health &
Safety Code Section 33000 et seq.), and of the Redevelopment Plan, and is in
the best interests of the citizens of National City.
c. That the Community Development Commission's disposition
of the Site pursuant to the Disposition and Development Agreement will assist in
the elimination of blight.
d. That the Community Development Commission's disposition
of the Site pursuant to the Disposition and Development Agreement is consistent
with the Specific Plan and subject to the consistency review process.
e. That the Disposition and Development Agreement is
consistent with the Implementation Plan for the Redevelopment Plan.
f. That any consideration AARB, LLC will pay for the Site is not
less than the fair reuse value of the Site at the use and with the covenants and
conditions and development costs authorized by the disposition.
2. The Disposition and Development Agreement, a true and correct
copy of which is on file with the City Clerk/Community Development Commission
Secretary, is hereby approved.
3. The Community Development Commission consents to (i) the
authorization and direction given by the Community Development Commission to
its Executive Directors and Community Development Commission Counsel to
take such other and further actions as may be necessary and proper to carry out
the terms of the Disposition and Development Agreement and the purpose of this
Resolution, including but not limited to signing such other and further documents,
including the documents attached as exhibits to the Disposition and Development
Agreement.
4. The Executive Director of the Community Development
Commission is directed to file a Notice of Exemption with the County Clerk
confirming that the project is exempt from further CEQA review.
5. That the Executive Director is hereby directed to transmit the
Summary Report for the Disposition And Development Agreement to the City
Council, as required by Health and Safety Code Section 33433.
//
3
PASSED AND ADOPTED this 24th day of January 2006.
ATTEST:
Nick Inzunza, Chairman
Benjamin Martinez, Secretary
APPROVED AS TO FORM:
George H. Eiser, III, City -CDC Attorney
4
SUMMARY REPORT
PERTAINING TO THE SALE OF REAL PROPERTY
(California Community Redevelopment Law Section 33433)
PURSUANT TO A PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT
Between:
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY
And
THE BEAUCHAMP FAMILY TRUST DATED 8-16-82
Prepared by:
KEYSER MARSTON ASSOCIATES, INC.
For:
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY
Date:
November 30, 2005
EXHIBIT 2
SUMMARY REPORT
PERTAINING TO THE PROPOSED SALE OF REAL PROPERTY
I. INTRODUCTION
The Community Development Commission of the City of National City (Commission) is
considering the sale of real property to The Beauchamp Family Trust dated 8-16-82
(Owner) pursuant to the Owner Participation Agreement (OPA) approved February
2005.
This Summary Report is prepared in accordance with Section 33433 of the California
Community Redevelopment Law. This summary consists of six additional sections, as
follows:
• Section II, Description of the Proposed Project
• Section III, Estimated Costs to be Incurred by the Commission under the Proposed
DDA
• Section IV, Estimated Value of the Site at the Highest and Best Use
• Section V, Estimated Fair Re -Use Value of the Interest to be Conveyed
• Section VI, Purchase Price the Owner will be Required to Pay
• Section VII, Explanation Why the Sale of the Property will Assist in Elimination of
Blight
Summary Report
Park Village
November 30, 2005
Page 2
05224ndh
16104.002.036
II. DESCRIPTION OF THE PROPOSED PROJECT
A. Proposed Transaction
The development site is located in Downtown National City on the block bounded by 11th
Street to the south, National City Boulevard to the east, Roosevelt Avenue to the west,
and Plaza Boulevard to the north. The site comprises six parcels totaling 1.43 acres
(Site). The Owner currently owns two parcels and will attempt to acquire the remaining
four parcels (Remaining Properties) though private negotiation. If the Owner is unable to
acquire the Remaining Properties, the Commission may consider acquiring the
Remaining Properties from the current property owners and conveying them to the
Owner.
The Owner intends to develop up to 227 flats, townhomes, live/work, and penthouse
units (Project). The residential units will be one -and two -bedroom units with an average
unit size of approximately 1,056 square feet (SF). The Project is planned to comprise
four separate buildings, the tallest at 24 stories. The Project will also have
approximately 14,000 SF of retail space, encapsulated at -grade parking for the retail
space, and a two -level subterranean garage with 352 residential parking spaces.
The salient aspects of the proposed business terms contained in the OPA are
summarized below.
B. Commission Responsibilities
• If the Owner is unable to successfully negotiate contracts to purchase the Remaining
Properties, the Owner will notify the Commission and provide evidence of the
Owner's good faith effort to acquire the Remaining Properties. The Commission may
consider initiating acquisition procedures to acquire the Remaining Properties,
including the requirements to consider adoption of a Resolution of Necessity.
• If the Commission adopts a Resolution of Necessity, the Owner will deposit with the
Commission an amount equal to the probable compensation for such Remaining
Properties.
• The Commission shall install appropriate public improvements, including relocation
and installation of underground utilities, gutters, curbs, sidewalks, and landscaping in
any City right-of-way adjacent to the Site.
Summary Report
Park Village
November 30, 2005
Page 3
05224ndh
16104.002.036
C. Owner Responsibilities
• The Owner will purchase the Remaining Properties from the Commission for a
purchase price equal to the Commission's total costs of acquisition and acquisition -
related costs, but not less than the fair re -use value.
• The cost of planning, designing, developing, and constructing the Project shall be
borne solely by the Owner.
• It is the responsibility of the Owner to ensure that applicable City zoning and land
use requirements will permit development of the Project.
• The Owner will comply with all governmental regulations in the construction, use,
and operation of the development, including all applicable federal, state, and local
labor standards.
Summary Report
Park Village
November 30, 2005
Page 4
05224ndh
-16104.002.036
III. ESTIMATED COST TO BE INCURRED BY THE COMMISSION UNDER THE
PROPOSED AGREEMENT
The Owner is responsible for reimbursing the Commission for total acquisition and
acquisition -related costs.
The Commission will incur additional costs related to the development of the Site.
These costs are estimated as follows: (1)
Commission Costs
Public Improvements $300,000
Legal, Economic, and Appraisal Consultants $50,000
Total Commission Costs $350,000
(1) All figures provided by the Community Development Commission of National City.
Summary Report
Park Village
November 30, 2005
Page 5
05224ndh
16104.002.036
IV. ESTIMATED VALUE OF THE SITE AT THE HIGHEST AND BEST USE
This section presents an analysis of the fair market value of the Site at its highest and
best use. In appraisal terminology, the highest and best use is that use of the Site that
generates the highest property value and is physically possible, financially feasible, and
legally permitted. Therefore, value at the highest and best use is based solely on the
value created and not on whether or not that use carries out the redevelopment goals of
the City of National City.
The Downtown Specific Plan governs the Site and regulates the zoning and land uses
for the Site. The Site is zoned for higher -density mid -rise multi -family residential, hotel,
or professional office development, with ground floor pedestrian -oriented retail, and a
maximum Floor Area Ratio (FAR) of 6.0. The Project as proposed does not achieve the
maximum allowable FAR due to a combination of factors such as the market risk
associated with pioneering projects, design constraints imposed by the Downtown
Specific Plan, and the cost impact associated with subterranean parking.
Based on a review of these considerations, the zoning of the Site, as well as
development trends in the marketplace, KMA concludes that high -density for -sale
residential development (such as the proposed Project) represents the highest and best
use of the Site. One this basis, then, KMA finds that the fair market value of the
Remaining Properties at their highest and best use is $3,007,000.
Summary Report
Park Village
November 30, 2005
Page 6
05224046
16104 002 036
V. ESTIMATED FAIR RE -USE VALUE OF THE INTEREST TO BE CONVEYED
This section presents an analysis of the fair re -use value of the interest to be conveyed
to the Developer subject to conditions, covenants, and restrictions contained in the
proposed OPA. In estimating the fair re -use value of the Remaining Properties, KMA
has reviewed the requirements that set specific conditions with respect to scope of
development, the schedule of performance, and method of financing.
KMA has separately reported to the Commission that the residual value for the Site is
$5,012,000, or $80 per SF of land. On a pro rata basis, therefore, the fair re -use value
for the Remaining Properties is $3,007,000.
Summary Report
Park Village
November 30, 2005
Page 7
05224ndh
16104.002.036
VI. PURCHASE PRICE WHICH THE DEVELOPER WILL BE REQUIRED TO PAY
Under California Community Redevelopment Law, the Commission is obligated to
publicly disclose information sufficient for a comparison of the purchase price contained
in the OPA with the estimated fair re -use value.
The Owner will purchase the Remaining Properties from the Commission for a purchase
price equal to the Commission's total costs of acquisition and relocation, but not less
than the fair re -use value. KMA concludes that the effective compensation to the
Commission will not be less than $3,007,000, or $80 per SF of land.
Summary Report
Park Village
November 30, 2005
Page 8
05224ndh
16104.002.036
VII. EXPLANATION WHY SALE OF THE PROPERTY WILL ASSIST IN THE
ELIMINATION OF BLIGHT
The Project Area is characterized by an array of blighting factors, including:
• The subdividing and sale of lots of irregular form and shape, and inadequate size, for
proper usefulness and development.
A prevalence of depreciated values and impaired investments, and social and
economic maladjustment.
Not all of these conditions are present throughout the Project Area. The Commission's
redevelopment efforts have successfully alleviated blighting conditions in some portions
of the Project Area. However, many of these conditions are still apparent in the area
surrounding the subject Site. Implementation of the proposed development can be
expected to assist in the alleviation of blighting conditions through the following:
• Improve the City's housing stock.
• Consolidation of irregular parcels into a site appropriate for development.
• Elimination of conditions of economic dislocation such as fragmented ownership
patterns.
• Improve public facilities and public infrastructure.
• Expansion, renovation, and relocation of businesses within the Project Area.
Summary Report
Park Village
November 30, 2005
Page 9
05224ne,
16104 002 036
ADVISORS IN:
REAL ESTATE To:
RIDEVELOPMENT
AFFORDABLE HOUSING
ECONOMIC DEVELOPMENT
SAN FRANCISCO
A. JURY KEYSER
TIMOTHYC. KELLY
KATE EARLE FUNK
DEBBIE M. KERN
ROBERT 1. WETMORE
From:
Date:
Subject:
1.os ANGELES
CALVIN E. HOWE. II
KATHLEEN H. HEAD A.
LAMES A. RAGE
PAULC ANDERSON
GREGORY D.SOO-HOO Keyser Marston Associates, Inc. (KMA) has been requested to review the
redevelopment transaction between the Community Development Commission of the
City of National City (Commission) and The Beauchamp Family Trust dated 8-16-82
(Owner). The transaction is detailed in the Owner Participation Agreement (OPA)
approved February 2005.
KEYSER MARSTON ASSOCIATES
ADVISORS IN PUBLIC/PRIVATE REAL ESTATE DEVELOPMENT
MEMORANDUM
Byron Estes, Deputy Director of Redevelopment
Community Development Commission of the City of National City
KEYSER MARSTON ASSOCIATES, INC.
November 30, 2005
Park Village —Estimate of Re -Use Value
SAN DIEGO
GERALD M. TRIMBLE
PAUL C MARRA
Introduction
The development site is located in Downtown National City on the block bounded by 11th
Street to the south, National City Boulevard to the east, Roosevelt Avenue to the west,
and Plaza Boulevard to the north. The site comprises six parcels totaling 1.43 acres
(Site). The Owner currently owns two parcels and will attempt to acquire the remaining
four parcels (Remaining Properties) though private negotiation. If the Owner is unable to
acquire the Remaining Properties, the Commission may consider acquiring the
Remaining Properties from the current property owners and conveying them to the
Owner. The Owner proposes to construct up to 227 for -sale residential units (Project)
on the Site.
B. Summary of Findings
KMA's principal conclusions are as follows:
• The estimated fair re -use value of the Remaining Properties is $3,007,000.
1660 HOTEL CIRCLE NORTH. SUITE 716 > SAN DIEGO. CALIFORNIA 92108 > PHONE: 619 718 9500 > FAX: 619 718 9508
W W W. KEYS E RMA RSTON.COM
05223ndh
16104.002.036
To: Byron Estes, Deputy Director of Redevelopment November 30, 2005
Subject: Park Village —Estimate of Re -Use Value Page 2
• The estimated value of compensation to be received by the Commission for the
Remaining Properties will be the Commission's actual total acquisition and
acquisition -related costs, but not less than $3,007,000.
• The estimated fair market value of the Remaining Properties at their highest and best
use is $3,007,000.
C. Background on Proposed Development
Community Overview
Downtown National City, roughly bound by Division Street, National City Boulevard, 7th
Street, D Avenue, Plaza Boulevard, Kimball Park, and Interstate 5, is a compact and
intense district featuring several significant assets. Downtown National City has a
diverse residential population of families and seniors; numerous civic, educational, and
recreational amenities; a broad variety of established businesses; and a strong
employment base. In addition, it is located close to many regional assets such as
Downtown San Diego and Lindbergh Field to the north, Mexico to the south, and the
newly developing suburban communities of the South Bay.
The National City Redevelopment Plan was adopted in 1995 with the general goal of
revitalizing the National City Redevelopment Project Area. Since the adoption of the
Plan, numerous redevelopment ventures have been, and continue to be, carried out by
public agencies, non-profit institutions, and private developers in Downtown National
City. The Commission continues its efforts to revitalize the Project Area with projects
such as: the National City Fire Station and Police Center, the City Library, Education
Village, and Town Square Rowhomes. Currently, National City is experiencing
unprecedented development interest with local, national, and international developers
planning new mixed -use developments in Downtown.
Proposed Development
The Site is located on the block bounded by 11th Street, National City Boulevard,
Roosevelt Avenue, and Plaza Boulevard, in the National City Redevelopment Project
Area. Specifically, the Site comprises 1.43 acres and is essentially flat. Portions of the
Site are currently improved with automotive -related, commercial, and industrial uses.
Table 1 describes the physical characteristics of the proposed project. As noted, the
Project will comprise up to 227 flats, townhomes, live/work, and penthouse units, with an
05223ndh
16104.002.036
To: Byron Estes, Deputy Director of Redevelopment November 30, 2005
Subject: Park Village —Estimate of Re -Use Value Page 3
average unit size of approximately 1,056 square feet (SF). The Project is planned to
comprise four separate buildings, the tallest at 24 stories. The Project will also have
approximately 14,000 SF of retail space, encapsulated at -grade parking for the retail
space, and a two -level subterranean garage with 352 residential parking spaces.
D. Proposed Transaction Terms
This section summarizes the salient aspects of the proposed business terms contained
in the OPA.
• If the Owner is unable to successfully negotiate contracts to purchase the Remaining
Properties, the Owner will notify the Commission and provide evidence of the
Owner's good faith effort to acquire the Remaining Properties. The Commission may
consider initiating acquisition procedures to acquire the Remaining Properties,
including the requirements to consider adoption of a Resolution of Necessity.
If the Commission adopts a Resolution of Necessity, the Owner will deposit with the
Commission an amount equal to the probable compensation for such Remaining
Properties.
• The Owner will purchase the Remaining Properties from the Commission for a
purchase price equal to the Commission's total costs of acquisition and acquisition -
related costs, but not less than the fair re -use value.
• The cost of planning, designing, developing, and constructing the Project shall be
borne solely by the Owner.
• It is the responsibility of the Owner to ensure that applicable City zoning and land
use requirements will permit development of the Project.
• The Commission shall install appropriate public improvements, including relocation
and installation of underground utilities, gutters, curbs, sidewalks, and landscaping in
any City right-of-way adjacent to the Site.
• The Owner will comply with all governmental regulations in the construction, use,
and operation of the development, including all applicable federal, state, and local
labor standards.
E. Estimate of Fair Re -Use Value
05223ndh
16104.002.036
To: Byron Estes, Deputy Director of Redevelopment November 30, 2005
Subject: Park Village —Estimate of Re -Use Value Page 4
Re -use value is defined as the highest price in terms of cash or its equivalent which a
property or development right is expected to bring for a specified use in a competitive
open market, subject to the covenants, conditions, and restrictions imposed by the OPA.
There are two fundamental approaches to establish re -use value:
• The first is an analysis based on the sale of comparable properties or development
rights. When comparable transactions exist and when relatively few adjustments are
required to adjust the comparables to the subject, the approach based on
comparable transactions can yield the most reliable indicator of value.
• The second method is an analysis based on the anticipated income characteristics
for a specific project. Often the income approach, also termed the residual value
approach, proves more useful than the comparable sales approach due to the
unique market setting, project characteristics, and specific requirements of the
Commission which make the approach based on comparable transactions difficult or
unfeasible to implement.
With this approach, the residual value is established as the amount that a developer
can feasibly afford to pay for a property or development right, after taking into
account the development costs funded by the developer, the quantity and quality of
the income stream from the project, and the market -based return on invested capital.
Comparable Sales Approach
The comparable sales approach to valuation is not applicable for establishing fair re -use
value as there are no known in -fill land sales in the immediate market area for proposed
high -density or high-rise residential developments.
Residual Value Approach
Tables 2 to 4 present KMA's residual value estimate for the Site.
Development Costs
05223ndh
16104.002.036
To: Byron Estes, Deputy Director of Redevelopment November 30, 2005
Subject: Park Village —Estimate of Re -Use Value Page 5
Table 2 summarizes the KMA estimate of total development costs for the Project,
excluding acquisition costs. These estimates are based on industry standards and
KMA's experience with similar residential projects in Southern California. Total
development costs for the Project, excluding land, are estimated to be $94,183,000, or
$315 per SF of gross building area (GBA), which equates to approximately $415,000 per
dwelling unit. Total development costs consist of the following:
• Direct construction costs, such as site work, parking, shell construction, FF&E, and
contingency. Total direct costs are estimated to be $71,248,000, or $238 per SF
GBA.
• Indirect costs, such as architecture and engineering, permits and fees, legal and
accounting, taxes and insurance, developer fee, marketing, and contingency. These
are estimated to be $16,162,000 or 22.7% of direct costs.
• Financing costs, including loan fees, interest during construction and sales, and HOA
dues on unsold units. These costs are estimated to total $6,773,000, or 9.5% of
direct costs.
Gross Sales Proceeds - Condominiums
Table 3 presents an estimate of the gross sales proceeds for the condominium portion of
the Project. KMA has based these revenue projections on other projects currently
planned or under construction in National City and neighboring communities, as well as
readily available market data from secondary sources. On this basis, KMA estimates an
average unit price of approximately $494,000, or $468 per SF, reflective of the mix of
unit types and view premiums planned for the Project.
Based on the foregoing, KMA estimates total condominium sales proceeds of
$112,152,000.
Gross Sales Proceeds — Retail
Table 3 also presents KMA's estimate of gross sales proceeds for the retail portion of
the Project. As indicated in the table, the net operating income (NOI) is projected to total
approximately $341,000 per year at stabilization. This NOI projection yields a
capitalized value of $4,548,000 upon completion.
Residual Land Value
05223ndh
16104 002.036
To: Byron Estes, Deputy Director of Redevelopment November 30, 2005
Subject: Park Village —Estimate of Re -Use Value Page 6
KMA estimated factors for cost of sale and target profit in light of KMA's experience with
similar developments in Southern California. As shown in Table 4, KMA assumed a cost
of sale of 3.0% of value, or $3,501,000, and a target developer profit of 12.0% of value,
or $14,004,000. On this basis, then, the net sales proceeds for the Project are
estimated at $99,194,000 after the cost of sale and profit are deducted from the gross
sales proceeds. The difference between the net sales proceeds of $99,195,000 and
development costs of $94,183,000 represents a residual value attributable to the Site of
$5,012,000, or $80 per SF of land, as shown below:
I. Total Site 62,500 SF
Total Gross Sales Proceeds $116,700,000
(Less) Cost of Sale ($3,501,000)
(Less) Developer Profit ($14,004,0001
Net Sales Proceeds $99,195,000
(Less) Development Costs ($94,183,0001
Residual Land Value $5,012,000
Per SF Land $80
II. Pro Rata Value of Remaining Properties
Remaining Properties Land Value
37,500 SF
$3,007,000
Conclusion
Based on the foregoing analysis, KMA concludes that the fair re -use value of the
Remaining Properties is $3,007,000.
F. Fair Market Value at Highest and Best Use
Section 33433 of California Redevelopment Law requires that prior to selling or leasing
real property, redevelopment agencies estimate the fair market value of the interest to
be conveyed at its highest and best (most profitable) use.
Typically, the analysis of the fair market value at highest and best use does not consider
the specific Commission/Owner transaction or development concept, but rather the most
profitable use that is consistent with the Redevelopment Plan or other governing land
use regulations. The purpose of the analysis is to estimate the maximum compensation
that the Commission could achieve if it were to offer the subject property or development
right on the open market.
05223ndh
16104.002.036
To: Byron Estes, Deputy Director of Redevelopment November 30, 2005
Subject: Park Village —Estimate of Re -Use Value Page 7
The highest and best use of the Site is the use that generates the highest property
value. By definition, the highest and best use is that use which is physically possible,
financially feasible, and legally permitted.
The Downtown Specific Plan governs the Site and regulates the zoning and land uses
for the Site. The Site is zoned for higher -density mid -rise multi -family residential, hotel,
or professional office development, with ground floor pedestrian -oriented retail, and a
maximum Floor Area Ratio (FAR) of 6.0. The Project as proposed does not achieve the
maximum allowable FAR due to a combination of factors such as the market risk
associated with pioneering projects, design constraints imposed by the Downtown
Specific Plan, and the cost impact associated with subterranean parking.
Based on a review of these considerations, the zoning of the Site, as well as
development trends in the marketplace, KMA concludes that high -density for -sale
residential development (such as the proposed Project) represents the highest and best
use of the Site. One this basis, then, KMA finds that the fair market value of the
Remaining Properties at their highest and best use is $3,007,000.
G. Limiting Conditions
The estimates of re -use value and fair market value at the highest and best use
contained in this memorandum assume compliance with the following assumptions:
1. There are no soil or subsoil problems, including toxic or hazardous conditions, on the
Site that need to be remediated in order to develop the Site.
2. The ultimate development will not vary significantly from that assumed in this Re -Use
Analysis.
3. The title of the property is good and marketable; no title search has been made, nor
have we attempted to determine the ownership of the property. The value estimates
are given without regard to any questions of title, boundaries, encumbrances, liens or
encroachments. It is assumed that all assessments, if any, are paid.
4. The Site will be in conformance with the applicable zoning and building ordinances.
5. Information provided by such local sources as governmental agencies, financial
institutions, realtors, buyers, sellers, and others was considered in light of its source,
and checked by secondary means.
05223ndh
16104.002.036
To: Byron Estes, Deputy Director of Redevelopment November 30, 2005
Subject: Park Village —Estimate of Re -Use Value Page 8
6. Neither the local nor national economy will experience a major recession. If an
unforeseen change occurs in the economy, the conclusions contained herein may no
longer be valid.
7. The Project will adhere to the schedule of performance described in the OPA.
8. Both parties are well informed and well advised and each is acting prudently in what
he/she considers his/her own best interest.
attachments
05223ndh
16104.002.035
TABLE 1
PROJECT DESCRIPTION
PARK VILLAGE
COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY
I. Site Area
62,500 SF
1.43 Acres
II. Gross Building Area
Residential Area 240,000 SF 80%
Retail Area 14,000 SF 5%
Common Areas/Circulation (1) 45.000 SF 15%
Total Gross Building Area (GBA) 299,000 SF 100%
FAR 4.8
III. Number of Stories 24 Stories
IV. Unit Mix Number of Units
One Bedroom 92 Units
Two Bedroom 135 Units
Total/Average 227 Units
V. Density 158 Units/Acre
VI. Type of Units Number of Units
Flats 181 Units
Townhomes 22 Units
Live/Work 12 Units
Penthouse 12 Units
Total/Average 227 Units
VII. Parking
Unit Size
782 SF 41%
11 243 SF 59%
1,056 SF 100%
Unit Size
940 SF 80%
1,454 SF 10%
1,471 SF 5%
11 653 SF 5%
1,056 SF 100%
A. Residential
Parking Type Subterranean
Number of Levels 2 Levels
Number of Spaces 352 Spaces
Parking Ratio 1.6 Spaces/Unit
Parking Area 125,000 SF
Average SF/Space 355 SF/Space
B. Retail
Parking Type At -Grade
Number of Spaces 50 Spaces
Parking Ratio 3.6 Spaces/1,000 SF Retail
Parking Area 25,762 SF
Average SF/Space 515 SF/Space
C. Total Parking
Number of Spaces
Parking Area
Average SF/Space
(1) KMA estimate.
402 Spaces
150,762 SF
375 SF/Space
Prepared by: Keyser Marston Associates, Inc.
Filename: i:National City\Park Village;11/30/2005;rks
TABLE 2
DEVELOPMENT COSTS
PARK VILLAGE
COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY
I. Direct Costs (1)
Off -Sites (2)
Demolition (2)
On-Sites/Landscaping (2)
Parking
Shell Construction
Tenant Improvements
Amenities/FF&E
Contingency
Total Direct Costs
II. Indirect Costs
Architecture & Engineering
Permits & (2)
Taxes & Insurance
Legal & Accounting
Developer Fee
Marketing/Sales
Contingency
Total Indirect Costs
III. Financing Costs
Loan Fees
Interest During Construction
Interest During Sales
HOA Dues on Unsold Units
Total Financing Costs
IV. Total Development Costs
Or Say (Rounded)
(1) Does not assume payment of prevailing wages.
(2) Estimate; not verified by KMA or the City of National City.
Totals Per Unit
$0
$0
$625,000
$9,800,000
$56,810,000
$420,000
$200,000
$3,393,000
$71,248,000
$2,850,000
$2,990,000
$3,501,000
$712,000
$2,137,000
$3,501,000
$471,000
$16,162,000
$753,000
$4,747,000
$1,055,000
$218,000
$6,773,000
$0
$0
$2,753
$43,172
$250,264
$1,850
$881
$14,947
$313,868
Notes
$0 Per SF Site Area
Included below
$10 Per SF Site Area
$65 Per SF Parking Area
$190 Per SF GBA
$30 Per SF - Retail
Allowance
5.0% of Directs
$238 Per SF GBA
$12,555 4.0% of Directs
$13,172 $10 Per SF GBA
$15,423 3.0% of Value
$3,137 1.0% of Directs
$9,414 3.0% of Directs
$15,423 3.0% of Value
$2,075 3.0% of Indirects
$71,198 22.7% of Directs
$3,317 1.1% of Directs
$20,912 6.7% of Directs
$4,648 1.5% of Directs
$960 0.3% of Directs
$29,837 9.5% of Directs
$94,183,000 $414,903
$94,183,000
$315 Per SF GBA
Prepared by: Keyser Marston Associates. Inc.
Filename: i:National City\Park Village.11/30/2005;rks
TABLE 3
GROSS SALES PROCEEDS
PARK VILLAGE
COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY
# of Price Price Gross Sales
Unit Size Units Per SF Per Unit Proceeds
I. Gross Sales Proceeds - Residential
Flats 940 SF 181 $465 $437,000 $79,154,000
Townhomes 1,454 SF 22 $425 $618,000 $13,593,000
Live/Work 1,471 SF 12 $425 $625,000 $7,502,000
Penthouse 1.653 SF 12 $600 $992,000 $11,903,000
Total/Average 1,056 SF 227 $468 $494,000 $112,152,000
Total Gross Sales Proceeds - Residential $112,152,000
II. Gross Sales Proceeds - Retail SF Rent Annual GSI
Retail Gross Scheduled Income (GSI) 14,000 SF $2.25 /SF/Month NNN $378,000
(Less) Vacancy @
Effective Gross Income (EGI)
(Less) Operating Expenses
Net Operating Income (NOI)
Capitalization Rate
Gross Sales Proceeds - Retail
Total Gross Sales Proceeds - Retail
5.0% of GSI ($18,900)
$359,100
5.0% of EGI
$325 /SF
($18,000)
$341,100
7.5%
$4,548,000
$4,548,000
III. Total Gross Sales Proceeds $116,700,000
Prepared by: Keyser Marston Associates, Inc.
Filename: i:National City\Park Village,11/30/2005;rks
TABLE 4
RESIDUAL LAND VALUE
PARK VILLAGE
COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY
I. Gross Sales Proceeds
Gross Sales Proceeds - Residential
Gross Sales Proceeds - Retail
Total Gross Sales Proceeds
(Less) Cost of Sale @
(Less) Developer Profit @
Net Sales Proceeds
II. Supportable Investment
Total Net Sales Proceeds
(Less) Total Development Costs
III. Residual Land Value
Per Unit
Per SF Site Area
3.0% of Value
12.0% of Value
$112,152,000
$4,548,000
$116,700,000
($3,501,000)
($14,004,000)
$99,195,000
$99,195,000
($94,183,000)
$5,012,000
$22,100
$80
IV. Indicated Residual Land Value of Remaining Properties
Remaining Parcels Site Area (1)
Residual Value Per SF
37,500 SF
$80 /SF
Indicated Residual Land Value of Remaining Properties
Or Say (Rounded)
$3,007,200
$3,007,000
(1) Reflects the following Assessor Parcel Numbers (APN): 555-113-04, 05, 08, and 11.
Prepared by: Keyser Marston Associates, Inc.
Filename: i:National City Park Village;11/30/2005;rks
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
January 24, 2006
AGENDA ITEM NO. 7
TO: CHAIRMAN AND BOARD MEMBERS
FROM: BENJAMIN MARTINEZ, EXECUTIVE DIRECTOR
SUBJECT: RESOLUTION NO. 2005-08: APPROVING THE INSTALLATION OF FIVE
(5) STREET LIGHTS ON ETA STREET IN NATIONAL CITY BY SAN
DIEGO GAS AND ELECTRIC
Recommendation:
Community Development Commission staff recommends that the Community
Development Commission of the City of National City:
ADOPT Resolution No. 2006-08 approving the installation of five (5) street lights
on Eta Street in National City by San Diego Gas and Electric.
Fiscal Impact:
The installation of the five (5) street lights shall cost $98,366. The total amount is
proposed to be paid for out of redevelopment project area revenues.
Environmental Impact:
CEQA is not applicable to this action.
Background:
The Community Development Commission has partnered with the National City's Police
and Public Works Departments to address safety and security issues along Eta Street,
which is a local street that provides direct access to the adjacent Park Villas
Apartments. In response to resident concerns and police calls for service, the City of
National City and the Community Development Commission identified the need to install
additional street lights to better illuminate Eta Street east of 43rd Street (Highland
Avenue). The Community Development Commission and the City of National City
Community Development Commission Agenda Item No. 7
January 24, 2005 Page 1 of 2
subsequently worked with San Diego Gas and Electric to identify the most appropriate
locations to install the street lights.
After surveying the area, it was recommended by the City of National City, the
Community Development Commission and San Diego Gas and Electric that five (5)
150-watt street lights be installed along Eta Street. Exhibit 2 illustrates the proposed
locations for installation of the street lights. The total cost for installing the five (5) street
lights is $98,366. Exhibit 3 is a letter from San Diego Gas and Electric to the City of
National City specifying the total installation cost, which includes materials and labor,
including the installation of a complete electrical system to service the lights. If the work
request is approved, it will take approximately seven (7) to fifteen (15) work days from
receipt of payment to complete the installation.
The Community Development Commission is charged with reversing and eliminating
physical and economic blight conditions, including improving the quality of life for
National City residents. The enhanced illumination of Eta Street will provide a safer
living environment and improve security for the residents and visitors of the Park Villas
Apartments, and the surrounding community.
With this, Community Development Commission staff recommends that the Community
Development Commission Board adopt Resolution No. 2006-08 approving the
installation of five (5) street lights on Eta Street in National City by San Diego Gas and
Electric.
ATTACHMENTS:
EXHIBIT 1 — Resolution No. 2006-08
EXHIBIT 2 — Project Installation Map
EXHIBIT 3 — SDG&E Letter to the City (December 1, 2005)
Staff Member: Del Valle
Community Development Commission Agenda Item No. 7
January 24, 2005 Page 2 of 2
RESOLUTION NO. 2006-08
A RESOLUTION OF THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY (CDC)
APPROVING THE INSTALLATION OF FIVE (5)
STREET LIGHTS ON ETA STREET IN NATIONAL CITY
BY SAN DIEGO GAS AND ELECTRIC
WHEREAS, the Community Development Commission of the City of National City has
partnered with the City of National City to address safety and security issues along Eta
Street, which is a local street that provides direct access to the Park Villas Apartments;
and,
WHEREAS, in response to resident concerns and police calls for service, the City of
National City and the Community Development Commission identified the need to install
additional street lights along Eta Street east of 43Id Street; and,
WHEREAS, after surveying the area; it was recommended that five (5) street lights be
installed at specific locations to better illuminate Eta Street; and,
WHEREAS, the total cost to install the five (5) street lights is $98,366; and,
WHEREAS, the total cost for the installation shall be paid for out of redevelopment
project area funds; and,
WHEREAS, the enhanced illumination of Eta Street will provide a safer living
environment and improve security for the residents and visitors of the Park Villas
Apartments, and the surrounding community.
NOW, THEREFORE, BE IT RESOLVED, that the Community Development
Commission of the City of National City hereby authorizes the installation of five (5)
street lights on Eta Street in National City by San Diego Gas & Electric.
//
//
//
//
//
//
EXHIBIT 1
i
PASSED AND ADOPTED this 24th day of January 2006.
ATTEST:
Benjamin Martinez, Secretary
APPROVED AS TO FORM:
George H. Eiser, III, City -CDC Attorney
Nick Inzunza, Chairman
2
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EXHIBIT 2
F.
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2
ON 2130110 NorionalsNoo
12/22/2005 THU 8:17 (JOB NO. 6800] a002
SOGI
Sempra Energy utility"
December 1, 2005
City of National City
Attn: Mr. Roberto Saucedo
Community Development Commission
140 East 12th Street, Stuite B
National City, CA 91950-3312
Subject: Revised Costs — Installation of Street Lights, Eta Street
Dear Mr. Saucedo:
San Diego Gas & Electric
8306 Century Park Court
San Diego. CA 92123
DPSS: 236060
This letter is to advise you of the updated costs for installation of five street lights on Eta Street.
The current cost is $98,366.00. This cost is subject to revision after 60 days.
If you wish to have SDG&E proceed with this installation, please forward your check, payable to
SDG&E, along with the enclosed Customer Payment Remittance form, to our Payment Services
Department at the following address:
San Diego Gas & Electric
Customer Payment Services
8326 Century Park Court, CP61C
San Diego, CA 92123-1576
Please call me at 858-654-1220 with any questions you may have.
Sincerely,
Christina Inglett
Street Lighting Coordinator
Enclosures
EXHIBIT 3
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
January 24, 2006
AGENDA ITEM NO. 8
TO: CHAIRMAN AND BOARD MEMBERS RR_kr 6
FROM: GEORGE H. EISER, III, LEGAL COUNSEL
SUBJECT: RESOLUTION NO. 2006-09: CONSOLIDATING THE ADMINISTRATION
OF THE CDC WITH THE ADMINISTRATION OF THE CITY OF NATIONAL
CITY, APPOINTING THE CITY MANAGER TO THE POSITION OF
EXECUTIVE DIRECTOR OF THE CDC, AND DIRECTING STAFF
REGARDING FURTHER STEPS TO EFFECTUATE THE
CONSOLIDATION
Recommendation:
Community Development Commission staff recommends that the Community
Development Commission of the City of National City:
ADOPT Resolution No. 2006-09 consolidating the administration of the CDC with
the administration of the City of National City, appointing the City Manager to the
position of Executive Director of the CDC, and directing staff regarding further steps
to effectuate the consolidation.
Fiscal Impact:
Unknown at this time.
Environmental Report:
N/A
Background:
At the October 4, 2005 City Council meeting, the Council adopted Resolution No. 2005-
220 authorizing the Mayor to execute an agreement with MBIA Muniservices to provide
a report outlining the actions required to consolidate the administration of the
Community Development Commission
Agenda Item No. 8
January 24, 2006 Page 1 of 3
Community Development Commission (CDC) with the administration of the City, to be
under the supervision of the City Manager.
The City Council, sitting as the legislative body of the City and as the Board of the CDC,
has considered said report, entitled "Preliminary Feasibility Study — Consolidation of the
Community Development Commission with the Administration of the City", hereinafter
referred to as "the Preliminary Study".
The following recommendations were proposed in the Preliminary Study:
1. Merge the administrative operations of the CDC into the City organization while
maintaining the current CDC model for conducting the business of the
Redevelopment Agency and Housing Authority;
2. Appoint the City Manager as Executive Director of the CDC;
3. Transfer all CDC staff into the City personnel system continuing "at will" status for
certain management staff and bringing "rank and file" staff under appropriate
public employee union representation;
4. Consolidate the financial management functions of the CDC into the City Finance
Department;
5. Consolidate the personnel management functions of the CDC into the City
Human Resources Department;
6. Solicit proposals to hire an outside contractor to conduct a CDC Comprehensive
Compensation Analysis in order to equitably integrate existing represented and
unrepresented positions into the City personnel system;
7. Solicit proposals to hire an outside contractor to prepare a CDC Reorganization
Implementation Plan.
In order to promote economy and efficiency in the city government, the Board of the
CDC wishes to implement certain of the above recommendations immediately.
The proposed resolution would:
• Consolidate and merge the administrative operations of the CDC with the City
organization as a City department within the City Manager's organizational
structure, while maintaining the current CDC model for conducting the business
of the Redevelopment Agency and the Housing Authority.
• Appoint the City Manager as Executive Director of the CDC.
Community Development Commission
January 24, 2006
Agenda Item No. 8
Page 2 of 3
• Direct the City Attorney and Assistant City Manager, working with the Executive
Director, to prepare and submit to the Board all required documents to effectuate
the necessary changes for the consolidation, and to follow-up on the remaining
recommendations contained in the Preliminary Study.
ATTACHMENTS:
EXHIBIT 1 — Resolution No. 2006-09
EXHIBIT 2 — Memorandum from City Attorney dated January 19,
2006
Community Development Commission
January 24, 2006
Agenda Item No. 8
Page 3 of 3
RESOLUTION NO. 2006 —09
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF NATIONAL CITY (CDC)
CONSOLIDATING THE ADMINISTRATION OF THE CDC WITH THE ADMINISTRATION
OF THE CITY OF NATIONAL CITY, APPOINTING THE CITY MANAGER TO THE
POSITION OF EXECUTIVE DIRECTOR OF THE CDC, AND DIRECTING STAFF
REGARDING FURTHER STEPS TO EFFECTUATE THE CONSOLIDATION
WHEREAS, at the October 4, 2005 City Council meeting, the Council adopted
Resolution No. 2005-220 authorizing the Mayor to execute an agreement with MBIA
Muniservices to provide a report outlining the actions required to consolidate the
administration of the Community Development Commission (CDC) with the
administration of the City, to be under the supervision of the City Manager; and,
WHEREAS, the City Council, sitting as the legislative body of the City and as the Board
of the CDC, has considered said report, entitled "Preliminary Feasibility Study —
Consolidation of the Community Development Commission with the Administration of
the City", hereinafter referred to as "the Preliminary Study"; and,
WHEREAS, the following recommendations were proposed in the Preliminary Study:
1. Merge the administrative operations of the CDC into the City organization while
maintaining the current CDC model for conducting the business of the
Redevelopment Agency and Housing Authority;
2. Appoint the City Manager as Executive Director of the CDC;
3. Transfer all CDC staff into the City personnel system continuing "at will" status for
certain management staff and bringing "rank and file" staff under appropriate
public employee union representation;
4. Consolidate the financial management functions of the CDC into the City Finance
Department;
5. Consolidate the personnel management functions of the CDC into the City
Human Resources Department;
6. Solicit proposals to hire an outside contractor to conduct a CDC Comprehensive
Compensation Analysis in order to equitably integrate existing represented and
unrepresented positions into the City personnel system;
7. Solicit proposals to hire an outside contractor to prepare a CDC Reorganization
Implementation Plan; and
WHEREAS, in order to promote economy and efficiency in the city government, the
Board of the CDC wishes to implement certain of the above recommendations
immediately. EXHIBIT 1
1
NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission
of the City of National City as follows:
1. That it is hereby determined and directed that the administrative operations of the
CDC be consolidated and merged into the City organization as a City department
within the City Manager's organizational structure, while maintaining the current
CDC model for conducting business of the Redevelopment Agency and Housing
Authority.
2. That the City Manager is hereby appointed Executive Director of the CDC.
3. That the City Attorney and the Assistant City Manager, working with the Executive
Director, are directed to prepare and submit to the Board allrequired documents to
effectuate the necessary changes for the consolidation, and to follow-up on the
remaining recommendations contained in the Preliminary Study.
PASSED AND ADOPTED this 24th day of January 2006.
ATTEST:
By:
Ben Martinez, Secretary
APPROVED AS TO FORM:
By:
George H. Eiser, Ill, Legal Counsel
By:
Nick Inzunza, Chairman
2
01/19/06 17:22 FAX 619 336 4327
CITY OF NATIONAL CITY j001/002
City of National City
Office of the City Attorney
1243 National City Boulevard., National City, CA 91950-4301
George H. Eiser, Ill • City Attorney
(619) 336-4220 Fax: (619) 336-4327 TDD: (619) 336-1615
TO: Chairman and Board Members, CDC DATE: January 19, 2006
• FROM: Legal Counsel
SUBJECT: Consolidation of the CDC Administration with City Administration; Appointment
of the City Manager as CDC Executive Director
At the October 4, 2005 City Council meeting, the City Council authorized an agreement with
MBIA Munisezvices to provide a report outlining the actions required to consolidate the
administration of the Community Development Commission (CDC) with the administration of
the City, to be under the supervision of the City Manager.
The report, entitled "Preliminary Feasibility Study — Consolidation of the Community
Development Commission with the Administration of the City", made the following
recommendations:
1. Merge the administrative operations of the CDC into the City organization while
maintaining the current CDC model for conducting the business of the Redevelopment
Agency and Housing Authority.
2. Appoint the City Manager as Executive Director of the CDC_
3. Transfer all CDC staff into the City personnel system continuing "at will" status for
ceztain management staff and bringing "rank and file" staff under appropriate public
employee union representation.
4. Consolidate the financial management functions of the CDC into the City Finance
Department.
5. Consolidate the personnel management functions of the CDC into the City Human
Resources Department.
6. Solicit proposals to hire an outside contractor to conduct a CDC Comprehensive
Compensation Analysis in order to equitably integrate existing represented and
unrepresented positions into the City personnel system,
7_ Solicit proposals to hire an outside contractor to prepare a CDC Reorganization
Implementation Plan.
EXHIBIT 2
Recycled paper
01/19/06 17:23 FAX 619 336 4327
CITY OF NATIONAL CITY Q 002/002
Consolidation of the CDC with City
January 19, 2006
Page Two
The proposed resolution would:
• Consolidate and merge the administrative operations of the CDC with the City
organization as a City department within the City Manager's organizational structure,
while maintaining the current CDC model ;for conducting the business of the
Redevelopment Agency and the Housing Authority.
• Appoint the City Manager as Executive Director of the CDC.
• Direct the City Attorney and Assistant City Manager, working with the Executive
Director, to prepare and submit to the Board all required documents to effectuate the
necessary changes for the consolidation, and to follow-up on the remaining
recommendations contained in the Preliminary Study.
GEORGE H. EISER,
Legal Counsel
GHE/gmo