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HomeMy WebLinkAbout25P - COOP AGMT GRAND CENTRAL CITY COUNCil MEETING DATE: REQUEST FOR COUNCIL ACTION CLERK OF COUNCil USE ONLY: AUGUST 18, 2008 TITLE: COOPERATIVE AGREEMENT FOR BUILDING REPAIRS AND PEST CONTROL SERVICES AT GRAND CENTRAL ARTS CENTER APPROVED o As Recommended o As Amended o Ordinance on 15t Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For f}~J;2- CITY MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION Authorize the City Manager and the Clerk of the Council to execute the attached Cooperative Agreement with the Community Redevelopment Agency of the City of Santa Ana (Agency) in the amount of $35,000, subject to non- substantive changes approved by the City Manager and City Attorney. DISCUSSION The 1924 Grand Central Arts Center building, home of California State University, Fullerton Graduate Arts Program, was completely remodeled and opened in 1999. There are 27 studio apartments, three art galleries, a live performance theater, classroom space and the Gypsy Den Restaurant. The building, which is located on the southeast corner of Broadway and Second Street, required an emergency building repair (completed in January 2008) and is in need of termite treatment to preserve the integrity of this historic building. In January of this year, for safety reasons, an emergency repair had to be done to one of the parapet walls of the building to prevent water intrusion and a new sheet metal cap matching the other parapet caps was installed. The termite treatment required will consist of complete subterranean treatment of basement foundations, bora-care treatment of basement ceiling floorboards, bora-care treatment of all 27 studio apartment attics, local treatment of drywood termites on the exterior and additional services as needed. This specific termite treatment will provide the least impact for the occupants of the building. 25P-1 Cooperative Agreement Grand Central Arts Center August 18, 2008 Page 2 FI SCAL IMPACT Funds are available in the Merged Capital Improvements account (account no. 570-936-6291). APPROVED AS TO FUNDS AND ACCOUNTS: ~9Y>> Cynthia J. Nelson Deputy City Manager for Development Services Community Development Agency ~ ~cA--1- ~rancisco Gutierrez b Executive Director Finance & Management Services Agency ~ (,/' CJN/GL/mlr 081808 CoopAgreementGrandCentralArtsCenter 25P-2 COOPERATIVE AGREEMENT FOR THE PUBLIC IMPROVEMENTS AT THE GRAND CENTRAL ARTS CENTER BUILDING THIS AGREEMENT is entered into this day of , 2008, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a public body corporate and politic (the "Agency"), and the CITY OF SANTA ANA, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California (the "City"). WITNESSETH A. The Agency is undertaking certain activities necessary for the execution of the City of Santa Ana redevelopment projects (the "Projects") under the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) and pursuant to the redevelopment plans for the Projects. B. The Agency desires to contract with the City for the City to provide for the emergency building repair (performed in January 2008) and pest control at the Grand Central Arts Center Building in order to repair the building and treat the building for termites and termite related damage. These repairs will keep the building habitable for the occupants of the building which include the California State University, Fullerton Graduate Arts Program, studio apartments, art galleries, classroom space and the Gypsy Den Restaurant. Such work will be referred to hereinafter as "Publicly Owned Improvement" in connection with the Agency's redevelopment activities. C. The Agency is willing in connection with the provision of such Publicly Owned Improvement by the City, to pay for the repair and maintenance of such Publicly Owned Improvement. D. The City has initially paid or will initially pay for said Publicly Owned Improvements on the condition that the Agency contribute to the costs of such rehabilitation and improvement work on said Publicly Owned Improvements. NOW, THEREFORE, the parties hereto do mutually agree as follows: 1. SCOPE OF WORK The City has caused or shall cause to be rehabilitated the Publicly Owned Improvements in a satisfactory and proper manner pursuant to plans and specifications to be prepared by the City in an amount not to exceed $35,000.00. Said improvements are necessary to repair and maintain the integrity of the building. 1 25P-3 2. COMPENSATION AND METHOD OF PAYMENT The Agency shall pay the City the actual cost incurred by the City for the Publicly Owned Improvement rehabilitation work set forth in Section 1. From the time the City incurs the cost of any particular improvement work subject to this Agreement to the time the Agency reimburses the City for that cost, the amount due to the City for such improvement work shall bear interest at the rate of the average City return on investment, as the same may change from time to time. Except as may be otherwise provided (1) by separate agreement between the City and the Agency, or (2) by budget appropriations or appropriation adjustments approved by the City and the Agency, the amount to be paid by the Agency hereunder shall be paid in the same fiscal year as the year in which the debts are incurred by the City. 3. LIABILITY AND INDEMNIFICATION In contemplation of the provisions of Section 895.2 of the Government Code of the State of California imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of said Code, the parties hereto, as between themselves, pursuant to the authorization contained in Section 895.4 and 895.6 of said Code, will each assume the full liability imposed upon it, or any of its officers, agents or employees by law for injury caused by negligent or wrongful act or omission occurring in the performance of this Agreement to the same extent that such liability would be imposed in the absence of Section 895.2 of said Code. To achieve the above-stated purpose each party indemnifies and holds harmless the other party for any loss, costs or expense that may be imposed upon such other party solely by virtue of said Section 895.2. The provisions of Section 2778 of the California Civil Code are made a part hereof as if fully set forth herein. 4. EFFECTIVE DATE OF AGREEMENT This Agreement shall take effect from and after the date of adoption and approval by the City and the Agency pursuant to official action of the governing bodies thereof and shall be effective for a duration not to exceed the time necessary for the City to complete the work and for the Agency to pay the City in full. This Agreement shall apply to all activities carried out by the City as set forth in Section 1 hereto. 2 25P-4 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: CITY OF SANTA ANA Patricia E. Healy Clerk of the Council By David N. Ream City Manager ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA by Cynthia J. Nelson Executive Director Patricia E. Healy Secretary APPROVED AS TO FORM: Joseph W. Fletcher City Attorney! Agency General Counsel By: Lisa E. Storck Asst. City Attorney! Asst. Counsel 3 25P-5 25P-6