HomeMy WebLinkAboutRDA Agenda Packet 111307CITY OF . TASCADERO
-COMMUNITY REDEVELOPMENT
AGENDA
Tuesday, November 13, 2007
6:00 P.M.
City Hall
Council Chambers
6907 EI Camino Real
Atascadero, California
REGULAR SESSION: 6:00 P.M.
ROLL CALL: Chairperson O'Malley
Vice Chairperson Beraud
Board Member Brennler
Board Member Clay
Board Member Luna
APPROVAL OF AGENDA: Roll Call
COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to
address the Board on any matter not on this agenda and over which the Board has
jurisdiction. Speakers are limited to five minutes. Please state your name and address
for the record before making your presentation. The Board may take action to direct the
staff to place a matter of business on a future agenda. A maximum of 30 minutes will
be allowed for Community Forum, unless changed by the Board.)
BOARD ANNOUNCEMENTS AND REPORTS: (On their own initiative, the Board
Members may make a brief announcement or a brief report on their own activities.
Board Members may ask a question for clarification, make a referral to staff or take
action to have staff place a matter of business on a future agenda. The Board may take
action on items listed on the Agenda.)
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A. CONSENT CALENDAR:
1. Community Redevelopment Agency Minutes — September 25 2007
• Board Secretary Recommendation: Board approve the Community
Redevelopment Agency minutes of September 25, 2007. [Board
Secretary]
2. Community Redevelopment Agency Minutes — October 9, 2007
• Board Secretary Recommendation: Board approve the Community
Redevelopment Agency minutes of October 9, 2007. [Board Secretary]
B. MANAGEMENT REPORTS:
1. Colony Square Prosect Update
• Recommendations: Agency Board:
1. Consider financial investment of up to $2 million in the Colony Square
project and direct the Executive Director to negotiate terms of
investment.
2. Consider purchase of 16,000 square feet of property as part of a
proposal to locate an alternative grocery market on the site of Rancho
Tee Motel, and direct the Executive Director to gather additional
information and negotiate terms of a potential purchase.
3. Appropriate $50,000 of Redevelopment Agency Funds for legal costs,
appraisals, studies and other costs associated with assisting the
Colony Square Project. [Executive Director]
2. Affordable Housing Policy and Strategy Development Consultant
Services Award
• Fiscal Impact: Tierra West Advisors, LLC to provide affordable housing
policy and strategy development consultant services in an amount not to
exceed $32,130.00, and an additional $5,000 to cover incidental expenses
related to public meetings, etc., paid from the Redevelopment Agency
Low/Mod Fund.
■ Recommendations: Agency Board:
1. Authorize the Executive Director to execute an agreement with Tierra
West Consultants for Affordable Housing Policy and Strategy
Development in the amount of $32,130; and,
2. Appropriate an additional $5,000 in Low/Moderate income housing
funds for the Affordable Housing Policy and Strategy Development
Project. [Executive Director]
C. ADJOURNMENT:
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ITEM NUMBER: RA A-1
DATE: 11/13/07
-{Isis laze
CITY OF ATASCADERO
COMMUNITY REDEVELOPMENT AGENCY
DRAFT MINUTES
Tuesday, September 25, 2007 — 6:30 P.M.
REGULAR SESSION: 6:30 P.M.
Chairperson O'Malley called the meeting to order at 6:32 p.m.
ROLL CALL:
Present: Board Members Brennler, Clay, Beraud, and Chairperson O'Malley
Absent: Board Member Luna
Others Present: Board Secretary Marcia McClure Torgerson, Recording Secretary
Grace Pucci
Staff Present: Executive Director Wade McKinney, Assistant Executive Director
Jim Lewis, Public Works Director Steve Kahn, and Interim City
Attorney Robert Schultz.
APPROVAL OF AGENDA:
MOTION: By Board Member Clay and seconded by Vice Chairperson
Beraud to approve the agenda.
Motion passed 4:0 by a roll -call vote.
COMMUNITY FORUM:
None
RDA Draft Minutes 0925/07
Page 1 of 2 -' 3
BOARD ANNOUNCEMENTS AND REPORTS:
None
A. CONSENT CALENDAR:
1. Community Redevelopmem Aoency iyunutes — sivaus► co, cuy,
Board Secretary Recommendation: Board approve the Community
Redevelopment Agency minutes of August 28, 2007. [Board Secretary]
MOTION: By Board Member Clay and seconded by Board Member
Brennler to approve Item #A-1.
Motion passed 4:0 by a voice vote.
B. ADJOURNMENT
Chairperson O'Malley adjourned the meeting at 6:33 p.m.
MINUTES PREPARED BY:
Grace Pucci, Recording Secretary
RDA Draft Minutes 09/25/07
Page 2 of 2
I
ITEM NUMBER: RA A-2
DATE: 11/13/07
18ceu� 79
' CITY OF ATASCADERO
COMMUNITY REDEVELOPMENT AGENCY
DRAFT MINUTES
Tuesday, October 9, 2007 — 6:30 P.M.
REGULAR SESSION: 6:30 P.M.
Chairperson O'Malley called the meeting to order at 6:30 p.m.
ROLL CALL:
Present: Board Members Brennler, Clay, Luna, Beraud and Chairperson
O'Malley
Absent: None
Others Present: Board Secretary Marcia McClure Torgerson and Recording
Secretary Grace Pucci
Staff Present: Executive Director Wade McKinney, Board Treasurer Rachelle
Rickard, Public Works Director Steve Kahn, Community
Development Director Warren Frace, Fire Chief Kurt Stone, Police
Lt. Jim Mulhall, Deputy Community Development Director Steve
McHarris, and Interim City Attorney Robert Schultz.
APPROVAL OF AGENDA:
MOTION: By Board Member Luna and seconded by Board Member Clay
to approve the agenda.
Motion passed 5:0 by a roll -call vote.
RDA Draft Minutes 10/09/07
Page 1 of 3 - 5
COMMUNITY FORUM:
101La
BOARD ANNOUNCEMENTS AND REPORTS:
Chairperson O'Malley stated he had received a request from the Atascadero Performing
Arts Committee, which would like to make a presentation to the Board on a feasibility
study regarding Atascadero.
There was Board consensus to have a presentation from the Atascadero
Performing Arts Committee in November.
Chairperson O'Malley requested staff present a status report on the Colony Square
Project.
There was Board consensus to have a presentation on Colony Square in
November at a regular City Council meeting.
A. CONSENT CALENDAR:
1. Community Redevelopment AaencV Minutes — oeptemoer 1 1, cvvr
• Board Secretary Recommendation: Board approve the Community
Redevelopment Agency minutes of September 11, 2007. [Board
Secretary]
MOTION: By Vice Chairperson Beraud and seconded by Board Member
Clay to approve Item #A-1.
Motion passed 5:0 by a voice vote.
B. MANAGEMENT REPORTS:
1. Redevelopment Agency Bylaws — Update and Amend
• Fiscal Impact: None.
• Recommendation: Agency Board adopt the Draft Resolution, updating
and amending the Agency Bylaws. [Executive Director]
Board Secretary Marcia McClure Torgerson gave the staff report and with Interim City
Attorney Robert Schultz answered questions of the Board.
MOTION: By Board Member Clay and seconded by Chairperson O'Malley
to adopt the Draft Resolution, updating and amending the
RDA Draft Minutes 10/09/07
Page 2 of 3
n Agency Bylaws, with the change to one meeting a month and
more if necessary.
Motion failed 2:3 by a roll -call vote. (Luna, Brennler, Bdraud
opposed)
PUBLIC COMMENT
None
MOTION: By Vice Chairperson Beraud and seconded by Board Member
Brennler to adopt the Draft Resolution, updating and amending
the Agency Bylaws, revising the meeting interval to quarterly
rather than once a year, at a time specified.
Motion passed 5:0 by a roll -call vote. (Resolution No. RA 2007-
003)
C. ADJOURNMENT:
Chairperson O'Malley adjourned the meeting at 6:43 p.m.
MINUTES PREPARED BY:
Grace Pucci, Recording Secretary
RDA Draft Minutes 10/09/07
Page 3 of 3
7
ITEM NUMBER: RA B-1
DATE: 11/13/07
t Agency of Atascadero
Staff Report — Executive Director
Colony Square Project Update
RECOMMENDATIONS:
Agency Board:
1. Consider financial investment of up to $2 million in the Colony Square project
and direct the Executive Director to negotiate terms of investment.
2. Consider purchase of 16,000 square feet of property as part of a proposal to
locate an alternative grocery market on the site of Rancho Tee Motel, and direct
the Executive Director to gather additional information and negotiate terms of a
potential purchase.
3. Appropriate $50,000 of Redevelopment Agency Funds for legal costs, appraisals,
studies and other costs associated with assisting the Colony Square Project.
REPORT -IN -BRIEF:
The Colony Square project, a mixed-use lifestyle center located on the northeast corner
of EI Camino Real and Morro Road, is a major component of the City's downtown area
revitalization. As a result of a reduction in their loan amount resulting from the recent
credit crisis, the developers are asking the City for financial assistance of approximately
$1 million. This amount is an estimate at this point.
Additionally, an alternative grocery market is requesting the City purchase 16,000
square feet of property to assist in locating a store at the site of the Rancho Tee Motel,
adjacent to Colony Square.
The policy question before you is twofold:
1. Is public investment in the project(s) consistent with the City's economic strategy
-- and vision, and;
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2. Are the risks of public investment worth the potential amenities and additional
revenues generated by the project(s).
DISCUSSION:
Background: The Colony Square project is a multi -phased mixed-use development
including a movie theater, retail shops, restaurants, and residences. The Italian
renaissance designed project consists of approximately 70,000 square feet of
residential space, 80,000 square feet of retail/restaurant space, 30,000 square feet of
theater (10 screens, 1,750 seats), 20,000 square feet of office space, a public square,
and 360 on-site parking spaces. The existing City Hall building is also located on the
site of the project.
Colony Square is a key component in the redevelopment of downtown Atascadero and
has been included in the current downtown economic development strategy. The
theater would provide a major draw for the downtown area and the addition of
restaurants would assist in making downtown an attractive place to be. The
construction of Colony Square will create a lifestyle center in the downtown area that is
planned to be a recreational, cultural, and social hub. During the "Just Listening"
campaign, the project was prominently featured and residents offered several positive
comments. The project is being developed by James Harrison of San Luis Obispo and
Peter Hilf of Santa Barbara. The gentlemen are equal partners in the project.
The Colony Square project was originally proposed in 2003. It was presented to the
Planning Commission and City Council at a joint study session on April 12, 2005. The
project received approval by the Planning Commission on August 16, 2005. The first
plans were submitted to the City on August 16, 2005 for public and off-site
improvements.
Current Status:
Construction Update
The Colony Square project is underway. The old Century Entertainment Plaza was
demolished and site work immediately followed. To date, work has involved utility
relocation, soil compaction, and drainage improvements. The building pad for the
movie theater has been completed and sewer relocation and storm drain installation are
almost complete. The next steps will involve completion of building pads for other
buildings, off-site street improvements, and the installation of the streets, curbs, gutters
and the public square. Construction of these components is expected to take
approximately five months to complete. Construction of the theater will begin soon and
is estimated to take 10-12 months to complete. The theater is expected to open at the
end of next year.
Several potential tenants have expressed interest in the project including an ice cream
store, coffee shop, restaurants, and clothiers. Lee and Associates are representing the
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project as the commercial broker. The negotiations between the theater operator and
the Colony Square ownership are underway.
Financial Update
The total approved project cost is expected to be approximately $50- $60 million. The
project is being built in phases, with the first phase consisting of the roads, sidewalks, a
public square, movie theater and related retail shops connected to the theater complex.
This portion of the project is expected to cost $17 million. As a consequence of the
recent credit crisis and the related increase in interest rates, the project's financing was
reduced. The Colony Square team now has a combination of loans and cash of
approximately $16 million for Phase I, leaving a funding shortfall of approximately $1
million. This amount could increase or decrease depending on changes to project
costs, interest rates or financing options. Because of -these potential changes, staff is
recommending authority to negotiate up to $2 million.
In addition to the funding concerns, there may be an issue with the rate future tenants
are willing to pay. For the project to be financially successful and to secure funding for
future phases, retail rents must average $2.50 per square foot. The downtown rental
market is currently supporting rents of between $0.90 and $2.00 per square foot
depending on the style, age, use, -and location of the building. While retail tenants may
be willing pay higher rents to locate closer to the theater, it will be difficult to reach the
average rent of $2.50 per square foot. The regional and national tenants desired by the
developer are balking at this rental rate unless allowances for tenant improvements are
offered. The project cannot currently afford such allowances unless additional funding
is secured.
Keyser Marston Associates Economic Development Study:
The City first became aware that the project may require financial assistance in the form
of a loan in late March 2007. At the time the developers weren't sure a loan would be
necessary and if it was necessary it would be needed for later phases of the project.
After several discussions with the developer regarding the project, and to prepare for a
possible request for assistance to the City Council, the City hired a nationally
recognized economic development consultant, Keyser Marston Associates of San
Francisco to study whether the project's financial projections and funding were real,
whether it would really require financial assistance, if it was a regular practice for cities
to invest in such projects, and how such investment or loan might be structured..
The City received a response on August 7, 2007. The report stated the following:
• The financial information, including pro forma analysis prepared for the project by
the developer was well done.
• Construction costs for a project of this nature appeared reasonable.
• Infill commercial projects with a high level of architectural detail typically have a
higher degree of cost risks than a single story suburban shopping center. As a
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result, developers may seek, at commencement of construction, to have a higher
spread between the value at completion and the estimated cost to construct than
the proposed project now has, in other words a greater margin or profit in
recognition of the risk taken.
• The projected profit margin for the Colony Square project was tighter than would
regularly be projected for a project of this type.
• Under these higher risk circumstances, it is not uncommon for a Redevelopment
Agency to assist in mitigating the cost risk.
• The agency must be careful how a loan or assistance is offered or prevailing
wages may be imposed on the project as a result of mandates in state law.
Staff has reviewed the findings in the report with other economic development
professionals and further questioned the developers on their project's financial
condition. Based upon the Agency/City goals of revitalizing downtown, it appears that
their request for funding is legitimate.
In September 2007, the City retained legal counsel to work with Colony Square counsel
to begin looking at ways the City could invest in the project legally and in compliance
with state Department of Industrial Relations (DIR) regulations that relate to prevailing
wage. If and when alternatives for assistance were agreed to in concept by both
parties, staff intended to share these with the City Council to see if the Council was
interested in investing in the project with redevelopment agency funds.
Construction of the theater in the downtown area would create a draw and energy, ' ]
particularly in the evenings. Additionally, the theater serves as an anchor and is
necessary to attract quality restaurants and retailers. Nonetheless, investment in
projects of this nature could be risky if further financial problems continue or if additional
funds are be required.
Council Approved Economic Development Policies
Staff has been working within approved Council policies when dealing with the Colony
Square team. There are two key City Council policies that outline the City's guidelines
for investment and the staff role for assisting with economic development projects.
These are the Economic Investment Strategy and the Business Development Program.
The purpose of the Economic Investment Strategy (Attachment A) is to establish
policies and guidelines for direct City assistance to qualified private sector projects that
result in new jobs and revenue in the community. Specifically, the strategy states that:
• Investment may be considered for projects that increase the tax base, add
entry level jobs, and create diversity in the economy, or create new
investment in the downtown area.
• Investment by the City will be tied to direct performance by the company
or in this case, developer. If the project does not create the anticipated (�
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revenue or job opportunities, the assistance provided by the City would be
reduced or eliminated.
• No offer of assistance will exceed 50% of the City's anticipated new
revenue over a period of 5 years, unless specifically authorized by the City
Council.
• Assistance is only provided to companies (or developers) that have an
acceptable operating history and are fiscally sound. Fiscal stability shall
be documented utilizing credit, financial, vendor, and public information, or
any combination thereof.
A fiscal estimate of the benefits of the project is outlined later in this report.
Earlier this year, staff asked the City Council to review the staff role in interacting with
local businesses, developers, and investors when pursuing the City's economic
development strategy and the City Council's goals. It is routine in California cities for
staff to interact with such parties to' pursue the City's economic development goals.
Sections of the Council's approved policy, the Business Development Program, state
that the staff role includes:
• Seeking and facilitating options for private _investment capital that can be
used in projects that may need funding.
• Marketing acceptable commercial/industrial-zoned sites with an emphasis
on prime commercial.
• Connecting and facilitating discussions between property owners,
developers and business interests.
• Providing development planning assistance to facilitate projects.
• Providing preliminary reviews of site plans and projects.
Chailenges in Providing Financial Assistance to Private Proiects:
It has become more difficult in recent years for cities to invest in private projects as a
result in changes to state law. SB 975 became effective on January 1, 2002 and
amended Labor Code 1720. This law requires prevailing wages to be paid for certain
types of work (construction, alteration, demolition, installation or repair work) done
under contract and paid for in whole or part out of public funds. In essence, if more than
$1,000 in public funds is invested in a private project, the entire project may become
subject to prevailing wages. This could increase costs by as much as 30%.
If Colony Square were to become subject to the prevailing wage requirements, the cost
(� of the project would likely be prohibitive and it may be difficult to complete the project at
all. Some cities and agencies invest in projects nonetheless and pay the prevailing
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wage rate. In the case of Colony Square, this could require an additional $10-15
million. Resources of this amount are not available.
City investment in or near private projects may be exempt from Labor Code 1720 if
assistance is applied to affordable housing or if assistance impacts the public and the
greater public good and not just the project itself. Examples of this may include
investing in affordable housing, providing for off-site public improvements in the area
such as street and sidewalk improvements and the pedestrian bridge, or securing
additional public parking in the project.
Because of the complex legal issues surrounding investment in the project, the City has
retained Stephen Deitsch of Best, Best and Krieger, LLP. Mr. Deitsch is a preeminent
redevelopment attorney in the State of, California and served as the City's legal advisor
when the Atascadero Community Redevelopment Agency was being created. Mr.
Deitsch is currently working with the Colony Square team to review investment options.
Options being looked at include different types of loans, operating agreements, and
constructing off-site improvements under City issued contracts. Any investment will be
protected as much as possible by assurances that the theater will be built, that the
tenant mix will be one desired by the community, that the center is operated as
intended, and that the investment will be made at intervals throughout the project and
not all at once. Additionally, it would be recommended that any agreement that outlines
investment be recorded and secured by the property. Any agreement pursuant to which ^
the Agency would provide a subsidy to the developer will contain provisions placing the ` 1
burden on the developer to comply with any and all requirements that might be
applicable pertaining to the payment of prevailing wages.
If the Council agrees in concept this evening to financially assist the Colony Square
project, staff will work with counsel to discover the best investment instrument and will
begin negotiating terms. At the point both parties agree to an investment instrument
and terms, an agreement will be drafted and returned to the City Council for review and
approval.
Again, it is important to state that investment in such projects carries a financial risk and
any investment should be considered carefully, especially during early phases of the
project when the financial plan is being questioned. If the choice is made to invest in
the project, staff will work with Counsel to protect the City's interests as much as
possible.
Proiect Financial Analysis
According to records obtained by the assessor's office, the parcel Colony Square is
located on currently has an assessed value of $6,700,000. The assessed value of the
parcel when the redevelopment agency was formed was $2,602,751. The
Redevelopment Agency collects property tax increment on the difference from the
assessed value of the property today to the assessed value of the property when the
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Agency was established. This amount is $4,097,249 and results in an estimated
property tax increment payment of $27,400. The site is not generating sales tax or
other revenues.
Once the site is developed, the developer estimates the assessed value to be $60
million. This number appears consistent with the project cost. At an assessed value of
$60 million, property taxes would be approximately $660,000. Of this amount, the
redevelopment agency would receive approximately $380,000. According to a
conceptual staff analysis, taxable sales at the site are estimated to be $5 million
annually resulting in annual sales tax payments of $50,000.
Based on these estimates, the net increase in taxes resulting from the development
could be as much as $400,000 per year. Assuming these estimates are correct,
according to guidelines in the Economic Investment Strategy, the project would be
eligible for $1,000,000 in assistance. The Council may choose to invest more if that is
their desire.
Alternative Grocery Opportunity
The City has been approached by an alternative market to locate on the site of the
Rancho Tee Motel. The market carries an array of organic and sustainable products
and a range of healthy, prepared meals. The market would be an ideal anchor for
Colony Square and a complement to the theater and other potential tenants.
The market is interested in leasing or purchasing the Rancho Tee Motel from Bhikhu
Patel, the motel owner, and redeveloping the site into a 20,000 square foot market. Mr.
Patel is interested in selling or leasing the site. The motel site is approximately 44,000
square feet. The market requires 60,000 square feet. The remaining 16,000 square
feet could be purchased from the Colony Square development, and the developers of
the project are willing to sell. Such a sale could provide additional funds to the Colony
Square project. The property may be worth anywhere from $650,000 to $1,000,000,
however an appraisal would need to be done to determine the exact cost. Mr. Patel is
not in a position to purchase the additional property. If the agency were to purchase the
property, it could be leased to the grocery store at market rate and generate revenue.
If the redevelopment agency or another entity doesn't purchase the property, the market
may locate in a different location. If the City decides to purchase the property and
leases it for less than market rate there could be the same legal issues with Labor Code
1720. These issues would need to be considered by the City Attorney and
representatives for the market.
If the Council has interest in being a partner in this project, staff will continue to gather
facts and begin negotiations with all parties. Staff would return to the council with a
proposal for your consideration.
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FINACIAL REVIEW
If the Council decides to invest in the Colony Square project, funding would come from
Redevelopment Agency property tax increment.
ATTACHMENTS:
Economic Investment Strategy
Economic Business Development Program
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5-01
ECONOMIC
INVESTMENT STRATEGY
INVESTING IN JOBS FOR THE COMMUNITY
PURPOSE
The purpose of this strategy is to establish policies and guidelines for direct City assistance to
qualified private sector projects that result in new jobs and revenue in the community. The
Economic Investment Strategy is one component of a multifaceted economic development strategy
and will be combined with other federal, state and local assistance programs.
BACKGROUND
Atascadero General Plan
"Atascadero should act to promote the economic health and vitality of its businesses to insure the
creation of jobs, the protection of entrepreneurial efforts, and to generate adequate tax revenue for
public services."'
The Economic Development Element of the General Plan calls for the City to "support the
development of industrial areas that lead to the recruitment or development of high technology,
emerging technology and professional service businesses that will provide the community's base of
moderate and high salary career oriented jobs". Additionally the Plan calls for the promotion of the
downtown core area as the historic commercial center of the community.
This Economic Investment Strategy is designed to create a public-private partnership in achieving
the economic goals of the community.
Framework for Creation of Strategy
The City creates this strategy under the authority granted under state law and local policy to provide
assistance to projects meeting the eligibility criteria and performance standards, including authority
granted by the State to "redevelopment agencies".
In applying this strategy, the City will utilize information contained in the `Business Retention,
Expansion & Attraction Study" for San Luis Obispo County (December 1994), the "Assessment of
Business Potential Study" for the City of Atascadero (October 1994), the City's Economic
Development Element of the General Plan (October 1994) and current trends and information
related to the employment base, labor market and targeted industries.
I Overall Goal, Atascadero General Plan, Economic Development Element, 1994.
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PROJECT CHARACTERISTICS & CRITERIA n
It shall be the Policy to consider financial participation in private development projects when the
following characteristics exist:
1) The project provides new revenue to the City. New revenues may include, but not
be limited to, sales & use taxes and property taxes or other sources of revenue
directly attributable to the project. Development fees or other fees paying for
infrastructure capacity or maintenance may not be used to project revenue.
2) The project results in the creation of "Career" or "Entry" level positions. Career
jobs are full-time employment opportunities that require a combination of prior
work experience and education and include fringe benefits. Entry level jobs will be
full-time employment with a starting wage and benefits equal to the County average
as set forth in the Private Industry Council Annual Report.
3) The project should result in the diversification of the existing business and
employment base in the community, including, but not limited to, Information
processing and computer services, environmental technology, telecommunications,
software development an applications, and tourism services, as generally described in
the "Target Industry Clusters in San Luis Obispo County", attached as exhibit "A".
4) Assistance may be provided to new investment or expansion of local companies in
the downtown master plan area, provided that sufficient revenue is generated by the
expansion or location to warrant such investment Investment projects in the
downtown master plan area would not be required to meet the job creation criteria
as listed in item 2 above.
5) Any investment by the City will be tied to direct performance by the company. If
the project does not create the anticipated revenue or job opportunities, the
assistance provided by the City would be reduced or eliminated.
6) No offer of assistance will exceed 50% of the City's anticipated new revenue over a
period of 5 years, unless specifically authorized by the City Council.
7) Assistance would only be provided to companies that have an acceptable operating
history and are fiscally sound. Fiscal stability shall be documented utilizing credit,
financial, vendor, and public information, or any combination thereof.
8) Assistance will be provided by agreement between the City and company investing in
the community. Third party agreements may be applicable where the agreement can
ensure that the provisions of this policy can be performed by the third party.
n
PROCEDURE
The following procedure will be followed in developing and implementing the investment strategy:
1) Staff shall prepare a preliminary economic pro -forma analysis that will include the
estimated revenue associated with the project, including, but not limited to, property,
sales, transient occupancy and other "taxes", business license and other fees
associated with the project.
2) Staff shall prepare a preliminary proposal for a private development that would
indicate the project meets the eligibility criteria and present the types of assistance
available for the specific project. Assistance can include, but is not limited to,
infrastructure design and construction, tax rebates, fee deferrals, credits and waivers,
and other forms of assistance allowed by State statute. Staff will investigate the use
of state and federal financial assistance programs available to the City that can be
used on behalf of the project.
3) A draft agreement will be prepared and presented to the City Council/Agency Board
of Directors for consideration. The Council/Board will have to take action to
approve and or modify the investment proposed in the agreement.
Adopted by the City Council on April 14, 1998.
M7
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Atascadero Economic Development Strategy n
Business Development Program - City/Agency Staff
The Atascadero Economic Development Strategy sets forth a variety of programs and
action plans to strengthen the economic development of the community. City/Agency
staff has many responsibilities to successfully implement the strategy. Specifically,
there are several key roles called for to build the partnerships identified in the Business
Development and Economic Development Partnerships portion of the strategy. The
Council ultimately establishes the goals and the staff roles in building these partnerships
and economic development activities will be shared regularly with the Economic
Development Committee of the City Council. The activities identified below are
intended to clarify the City Council/Executive Board's expectation of staff on several
issues.
Staff understands that their role includes:
❑ Seeking and facilitating options for private investment capital that can be used in
projects that may need funding.
❑ Marketing acceptable commercial/industrial-zoned sites with an emphasis on
prime commercial.
❑ Marketing Atascadero to retail and tourist businesses.
❑ Connecting and facilitating discussions between property owners, developers
and business interests. `
❑ Providing development planning assistance to facilitate projects.
❑ Providing preliminary reviews of site plans and projects.
❑ Any offer for City/Agency financial incentives must be reviewed by the finance
committee.
In fulfilling this role:
❑ Staff will include Main Street and the Chamber of Commerce as appropriate.
❑ Staff will encourage public workshops and neighborhood meetings.
APPROVED BY COUNCIL FINANCE COMMITTEE
20
Rede
Staff Report - Executive Director
ITEM NUMBER: RA B-2
DATE: 09/25/07
of Atascadero
Affordable Housing Policy and Strategy Development
Consultant Services Award
RECOMMENDATIONS:
Agency Board:
1. Authorize the Executive Director to execute an agreement with Tierra West
Consultants for Affordable Housing Policy and Strategy Development in the amount of
$32,130; and,
2. Appropriate an additional $5,000 in Low/Moderate income housing funds for the
Affordable Housing Policy and Strategy Development Project.
DISCUSSION:
Background: Several months ago staff recommended the hiring of a qualified affordable
housing consultant; reasoning that the creation of an Affordable Housing Policy and
Development Strategy is essential to project development and suitable use of Agency
housing set-aside funds and City affordable housing in -lieu funds. A proactive policy
will guide Agency and City decisions relative to affordable housing projects, and is key
to effectively working with affordable housing developers, and fulfilling the Agency's and
City's affordable housing requirements under the law.
The Board approved the issuance of a Request for Qualifications and Proposals for an
Affordable Housing Policy and Strategy Development Consultant with a $30,000
budget. Three timely responses were received. On October 3, 2007, staff interviewed
the three respondents, and following a reference check selected Tierra West Advisors,
LLC for a second interview. As a result, a better understanding of the needs of the
City/Agency emerged and Tierra West revised their estimate to an amount not to
exceed $32,130.
Tierra West will provide the following services:
21
ITEM NUMBER: RA B-2
DATE: 09/25/07
1. Create inventory of existing affordable and inclusionary housing, covenant
review and owner occupancy verification.
2. Analyze and recommend appropriate staffing levels to properly monitor and
maintain housing records and programs.
3. Assist staff to identify strategic partnerships with local and regional affordable
housing providers and developers.
4. Develop relevant affordable housing programs that will reflect a housing
policy that will meet the Agency's affordable housing legal requirements and
needs. The programs and projects can include but are not limited to infill
housing, employer assisted housing, and loan programs.
Specifically, Tierra West will undertake the following activities:
• Document and data collection
• Preparation of database (Inventory of existing affordable housing, inclusionary
housing, covenant terms and occupants).
• Identify and analyze partnerships with other organizations.
• Analysis of legal requirements and best practices for Atascadero housing.
• Development of procedures, requirements and needs that should be addressed
in developer proposals in order to assist in meeting Atascadero's housing
obligations.
• Program design and project activities to assist in implementing Atascadero
housing goals and objectives. .•t
• Educational effort for elected officials, developers, non -profits, residents and
community stakeholders.
• Research and analyze staff time and administration costs and develop a
recommendation for staffing needs, time constraints, and program management.
• Preparation of first draft of Comprehensive Housing Policy.
• Review of documents with Atascadero staff.
• Modify Housing Policy and integrate comments.
• Review of documents with Atascadero staff.
• Coordinate additional community outreach meetings and public body
presentations.
• Prepare final version of Housing Policy.
Conclusion: While the selection was a difficult one given the quality and caliber of the
proposers, Tierra West Advisors, LLC, was chosen and has agreed to provide
Affordable Housing Consultant Services pursuant to the terms and conditions of the
attached Consultant Services Agreement. Staff recommends that Tierra West Advisors,
LLC be retained to provide Affordable Housing Consultant Services.
22
ITEM NUMBER: RA B-2
DATE: 09/25/07
n ALTERNATIVES:
1. Council take no action.
2. Council instruct staff to renegotiate the terms and conditions of the Consultant
Agreement as direct by the Board.
Given that the selected consultant is qualified and competent to provide the services
requested as set by the Board, Staff does not recommend either alternative.
FISCAL IMPACT:
Tierra West Advisors, LLC to provide affordable housing policy and strategy
development consultant services in an amount not to exceed $32,130.00, and an
additional $5,000 to cover incidental expenses related to public meetings, etc., paid
from the Redevelopment Agency Low/Mod Fund.
ATTACHMENT:
1. Consultant Services Agreement
n
23
ATASCADERO COMMUNITY REDEVELOPMENT AGENCY
CONTRACT FOR
Tierra West Advisors
for
Affordable Housing Policy and Strategy Development
Im
Atascadero Community Redevelopment Agency
Tierra West Advisors
CONSULTANT SERVICES AGREEMENT
FOR THE
ATASCADERO COMMUNITY REDEVELOPMENT AGENCY
Tierra West Advisors
THIS CONTRACT is made and entered into between Atascadero Community Redevelopment Agency,
.. ("Agency"), and Tierra West Advisors ("Consultant"). Agency and Consultant agree as follows:
1. SCOPE AND STANDARDS:
A. CONTRACT. Consultant shall do all work, attend all meetings, produce all reports
and carry out all activities necessary to complete the services described in the SCOPE OF
WORK AND STANDARDS FOR SERVICES, attached hereto and incorporated herein by this
reference as Exhibit A, as requested by the Agency. This Contract and its exhibits shall be
known as the "Contract Documents." Terms set forth in any Contract Document shall be
deemed to be incorporated in all Contract Documents as if set forth in full therein.
2. EMPLOYMENT STATUS OF PERSONNEL:
A. INDEPENDENT CONTRACTOR; EMPLOYEES OF CONSULTANT. Consultant
enters into this Contract as, and shall at all times remain as to the Agency, an independent
contractor and not as an employee of the Agency. Nothing in this Contract shall be construed
to be inconsistent with this relationship or status. Any persons employed by Consultant for the
performance of services pursuant to this Contract shall remain employees of Consultant, shall
at all times be under the direction and control of Consultant, and shall not be considered
employees of Agency. All persons employed by Consultant to perform services pursuant to this
Contract shall be entitled solely to the right and privileges afforded to Consultant employees
and shall not be entitled, as a result of providing services hereunder, to any additional rights or
privileges that may be afforded to Agency employees.
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Atascadero Community Redevelopment Agency
Tierra West Advisors
B. INDEPENDENT INVESTIGATION. The Consultant agrees and hereby represents it
has satisfied itself by its own investigation and research regarding the conditions affecting the
work to be done and labor and materials needed, and that its decision to execute this Contract
is based on such independent investigation and research.
C. COMPLIANCE WITH EMPLOYMENT LAWS. The Consultant shall keep itself fully
informed of, shall observe and comply with, and shall cause any and all persons, firms or
corporations employed by it or under its control to observe and comply with, applicable federal,
state, county and municipal laws, ordinances, regulations, orders and decrees which in any
manner affect those engaged or employed on the work described by this Contract or the
materials used or which in any way affect the conduct of the work.
D. UNLAWFUL DISCRIMINATION PROHIBITED. Consultant shall not engage in
unlawful employment discrimination. Such unlawful employment discrimination includes, but is
not limited to, employment discrimination based upon a person's race, religious creed, color,
national origin, ancestry, physical handicap, medical condition, marital status, gender,
citizenship or sexual orientation.
3. TIME OF PERFORMANCE:
The services of Consultant are to commence upon execution of this Contract by
Agency, and shall be undertaken and completed in a prompt and timely manner, in accordance
with the Scope of Work referenced in Exhibit A. Except as provided in Sections 6 and 19
below, this Contract shall terminate no later than November [ 2008 unless extended by the
mutual agreement of both parties.
4. COMPENSATION:
A. TERMS. Compensation to the Consultant shall be as set forth in Exhibit B attached
hereto and made a part hereof.
B. NO PAY FOR ADDITIONAL SERVICES WITHOUT WRITING. Consultant shall not
be compensated for any services rendered in connection with its performance of this Contract,
which are in addition to those set forth herein or listed in Exhibit A, unless such additional
services are authorized in advance and in writing by the Agency Manager or the Agency
Manager's designee (hereinafter "Agency Manager" shall include the Agency Manager's
designee). Consultant shall be compensated for any additional services in the amounts and in
the manner as agreed to by Agency and Consultant at the time Agencys express written
authorization signed by the Agency Manager is given to Consultant for the performance of said
services.
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Atascadero Community Redevelopment Agency
Tierra West Advisors
5. SUPERVISON, LABOR AGREEMENTS AND PERSONNEL:
dn»,�
A. CONSULTANT SUPERVISES PERSONNEL. The Consultant shall have the
responsibility for supervising the services provided under this Contract, hiring of personnel,
establishing standards of performance, assignment of personnel, determining and affecting
discipline, determining required training, maintaining personnel files, and other matters relating
to the performance of services and control of personnel. The Agency Manager may use any
reasonable means to monitor performance and the Consultant shall comply with the Agency
Manager's request to monitor performance.
B. PERFORMANCE NOT SUBJECT TO EMPLOYMENT AGREEMENTS. The Agency
acknowledges that the Consultant may be obligated to comply with bargaining agreements
and/or other agreements with employees and that the Consultant is legally obligated to comply
with these Contracts. It is expressly the intent of the parties and it is agreed by the parties that
the Consultant's performance shall not in any manner be subject to any bargaining
agreement(s) or any other agreement(s) the Consultant may have covering and/or with is
employees.
C. APPROVAL OF STAFF MEMBERS. Consultant shall make every reasonable effort
to maintain the stability and continuity of Consultant's staff assigned to perform the services
required under this Contract. Consultant shall notify Agency of any changes in Consultant's
staff to be assigned to perform the services required under this Contract and shall obtain the
approval of the Agency.Manager of a list of all proposed staff members who are to be assigned
to perform services under this Contract prior to any such performance.
rad
6. TERMINATION:
A. 30 DAYS NOTICE. The Agency, upon thirty (30) days written notice, may terminate
this Contract, without cause, at any time. In the event of such termination, Consultant shall be
compensated for non -disputed fees under the terms of this Contract up to the date of
termination.
B. OBLIGATIONS SURVIVE TERMINATION. Notwithstanding any termination of this
Contract, Consultant shall not be relieved of liability to the Agency for damages sustained by
the Agency by virtue of any breach of this Contract by Consultant, and the Agency may
withhold any payments due to Consultant until such time as the exact amount of damages, if
any, due the Agency from Consultant.is determined. All of the indemnification, defense and
hold harmless obligations in this Contract shall survive termination.
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Atascadero Community Redevelopment Agency
Tierra West Advisors
7. CHANGES:
The Agency or Consultant may, from time to time, request changes in the scope of the
services of Consultant to be performed hereunder. Such changes, including any increase or
decrease in the amount of Consultant's compensation and/or changes in the schedule must be
authorized in advance by both Parties in writing. Mutually agreed changes shall be
incorporated in written amendments to this Contract. Any increase in the amount of
Consultant's compensation and/or changes in Exhibit A and or Exhibit B must be authorized in
advance by the Agency Manager.
8. PROPERTY OF AGENCY:
A. MATERIALS PREPARED EXCLUSIVE PROPERTY OF AGENCY. It is. mutually
agreed that all materials prepared by the Consultant under this Contract are upon creation and
shall be at all times the exclusive property of the Agency, and the Consultant shall have no
property right therein whatsoever. Agency agrees that Consultant shall bear no responsibility for
any reuse of the materials prepared by the Consultant if used for purposes other than those
expressly set forth in the Intended Use of Consultant's Products and Materials section of this
Contract. Consultant shall not disseminate any information or reports gathered or created
pursuant to this Contract without the prior written approval of Agency including without limitation
information or reports required by government agencies to enable Consultant to perform its
duties under this Contract and as may be required under the California .Public Records Act
excepting therefrom as may be provided by court order. Consultant will be allowed to retain
copies of all deliverables.
B. CONSULTANT TO DELIVER AGENCY PROPERTY. Immediately upon termination,
or upon the request by the Agency, the Agency shall be entitled to, and the Consultant shall
deliver to the Agency, all data, drawings, specifications, reports, estimates, summaries and
other such materials and property of the Agency as may have been prepared or accumulated to
date by the Consultant in performing this Contract. Consultant will be allowed to retain copies
of all deliverables to the Agency.
9. CONFLICTS OF INTEREST:
A. CONSULTANT covenants that neither it, nor any officer or principal of its firm, has or
shall acquire any interest, directly or indirectly, which would conflict in any manner with the
interests of Agency or which would in any way hinder Consultant's performance of services
under this Contract. Consultant further covenants that in the performance of this Contract,
Consultant shall take reasonable care to ensure that no person having any such interest shall
be employed by it as an officer, employee, agent or subcontractor without the express written
consent of the Agency Manager. Consultant agrees to at all times avoid conflicts of interest or
the appearance of any conflicts of interest with the interests of Agency in the performance of
this Contract. Consultant agrees to include language similar to this Section 9(A) in all contracts I '
with subcontractors and agents for the work contemplated herein.
rev 511106 5
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Atascadero Community Redevelopment Agency
Tierra West Advisors
nlo. CONFIDENTIAL INFORMATION:
�. .iknial:'u i
A. ALL INFORMATION KEPT IN CONFIDENCE. All materials prepared or assembled
by Consultant pursuant to performance of this Contract are confidential and Consultant agrees
that they shall not be made available to any individual or organization without the prior written
approval of the Agency, except by court order.
B. REIMBURSEMENT FOR UNAUTHORIZED RELEASE. If Consultant or any of its
officers, employees, or subcontractors does voluntarily provide information in violation of this
Contract, the Agency has the right to reimbursement and indemnity from party releasing such
information for any damages caused by the releasing party's, including the non -releasing
party's attorney's fees and disbursements, including without limitation expert's fees and
disbursements.
C. COOPERATION. Agency and Consultant shall promptly notify the other party should
Consultant or Agency, its officers, employees, agents, or subcontractors be served with any
summons, complaint, subpoena, notice of deposition, request for documents, interrogatories,
request for admissions or other discovery request, court order or subpoena from any party
regarding this Contract and the work performed thereunder or with respect to any project or
property located within the Agency. Agency and Consultant each retains the right, but has no
obligation, to represent the other party and/or be present at any deposition, hearing or similar
proceeding. Consultant and Agency agree to cooperate fully with the other party and to provide
,the other party with the opportunity to review any response to discovery requests provided by
Consultant or Agency. -However, Agency and Consultant's right to review any such response
does not imply or mean the right by the other party to control, direct, or rewrite said response.
11. PROVISION OF LABOR, EQUIPMENT AND SUPPLIES:
A. CONSULTANT PROPERTY. Consultant shall furnish all necessary labor,
supervision, equipment, communications facilities, and supplies necessary to perform the
services required by this Contract. Agency acknowledges that all equipment and other tangible
assets used by Consultant in providing these services are the property of Consultant and shall
remain the property of Consultant upon termination of this Contract.
B. SPECIAL SUPPLIES. Agency shall be responsible for supplying any special
supplies, stationary, notices, forms or similar items that it requires to be issued with an Agency
logo. All such items shall be approved by the Agency Manager and shall be provided at
Agency's sole cost and expense.
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Atascadero Community Redevelopment Agency
Tierra West Advisors
12. COMPLIANCE WITH LAW:
A. COMPLIANCE REQUIRED. Consultant shall keep itself informed of applicable local,
state, and federal laws and regulations which may affect those employed by it or in anyway
affect the performance of its services pursuant to this Contract. Consultant shall observe and
comply with all applicable laws, ordinances, regulations and codes of federal, state and local
governments, and shall commit no trespass on any public or private property in performing any
of the work authorized by this Contract. Consultant shall at all times hold a valid contractor's
license if performing any function or activity for which a license is required pursuant to Chapter
9 (commencing with section 7000) of Division 3 of the California Business and Professions
Code, and Consultant shall provide a copy of the license(s) upon the request of the Agency.
The Agency, its officials, officers, elected officials, appointed officials and employees shall not
be liable at law or in equity as a result of any failure of consultant to comply with this section.
B. PREVAILING WAGES. In the event it is determined that the Consultant is required to
pay prevailing wages for the work performed under this Agreement, the Consultant shall pay all
penalties and wages as required by applicable law.
13. SUBCONTRACTING:
None of the services covered by this Contract shall be subcontracted without the prior
written consent of the Agency Manager. Consultant shall be as fully responsible to the Agency
for the negligent acts and omissions of its contractors and subcontractors, and of persons
either directly or indirectly employed by them, as it is for the negligent acts and omissions of
persons directly employed by Consultant.
14. ASSIGNABILITY:
Consultant shall not assign or transfer any interest in this Contract whether by
assignment or notation. However, claims for money due or to become due Consultant from
the Agency under this Contract may be assigned to a financial institution, but only with prior
written consent of the Agency Manager. Notice of any assignment or transfer whether
voluntary or involuntary shall be furnished promptly to the Agency. The rights and benefits
under this agreement are for the sole and exclusive benefit of the Agency and this Contract
shall not be construed.that any third party has an interest in the Contract.
251
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Tierra West Advisors
15. LIABILITY OF CONSULTANT:
Consultant shall be responsible for performing the work under this Contract in a manner
which is consistent with the generally accepted standards of Consultant's profession and shall
be liable for its own negligence and the negligent acts of its employees, agents, contractors
and subcontractors. The Agency shall have no right of control over the manner in which the
work is to be done but only as to its outcome, and shall not be charged with the responsibility
of preventing risk to Consultant or its employees, agents, contractors or subcontractors.
16. INDEMNIFICATION:
KINDEMNIFICATION FOR PROFESSIONAL LIABILITY. When the law establishes a
professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant
shall indemnify, protect, defend and hold harmless Agency and any and all of its officials, employees and
agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and
expenses, including attorneys fees and costs to the extent same are caused in whole or in part by any
negligence or wrongful act, error or omission of Consultant, willful misconduct, or recklessness of its
officers, agents, employees or sub -consultants (or any entity or individual that Consultant shall bear the
legal liability thereof) in the performance of professional services under this agreement.
B. INDEMNIFICTION FOR OTHER THAN PROFESSIONAL LIABILITY. Other than in
the performance of professional services and to the full extent permitted by law, Consultant
-hall indemnify, defend and hold harmless Agency, and any and all of its employees, officials
and agents from and against any liability (including liability for claims, suits, actions, arbitration
proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of
any kind, whether actual, alleged or -threatened, including attorneys fees and costs, court costs,
interest, defense costs, and expert witness fees), where the same arise out of, are a
consequence of, or are in any way attributable to, in whole or in part, the performance of this
Agreement by Consultant or by any individual or entity for which consultant is legally liable,
including but not limited to officers, agents, employees or sub -consultants of Consultant.
C. GENERAL INDEMNIFICATION PROVISIONS. Consultant agrees to obtain executed
indemnity agreements with provisions identical to those set forth here in this section for each
and every sub -consultant or any other person or entity involved by, for, with or on behalf of
Consultant in the performance of this agreement. In the event consultant fails to obtain such
indemnity obligations from others as required here, Consultant agrees to be fully responsible
according to the terms of this section. Failure of Agency to monitor compliance with these
requirements imposes no additional obligations on Agency and will in no way act as a waiver of
any rights hereunder. This obligation to indemnify and defend Agency as set forth here is
binding on the successor, assigns or heirs of Consultant and shall survive the termination of this
agreement or this section.
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Atascadero Community Redevelopment Agency
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M
17. INSURANCE:
Consultant shall maintain prior to the beginning of and for the duration of this
Agreement insurance coverage as specified in Exhibit C attached to and part of this
agreement.
18. RECORDS:
Consultant shall maintain complete and accurate records with respect to labor costs,
material expenses, parcels abated or serviced and other such information required by Agency
that relates to the performance of services under this Contract. Consultant shall maintain
adequate records of services provided in sufficient detail to permit an evaluation of services.
All such records shall be maintained in accordance with generally accepted accounting
principles and shall be clearly identified and readily accessible and in a form acceptable to the
Agency, which the Agency may specify and change from time to time. Consultant shall
provide free access to the representatives of Agency or its designees, at reasonable times, to
such books and records, shall give Agency the right to examine and audit said books and
records, shall permit Agency to make transcripts therefrom as necessary, and shall allow
inspection of all work, data, documents, proceedings, and activities related to this Contract.
Such records, together with supporting documents, shall be maintained for a period of three (3)
years after receipt of final payment.
19. MISCELLANEOUS PROVISIONS:
A. ASSIGNMENT OR. SUBSTITUTION. Agency has an NONDISCRIMINATION /
NONPREFERENTIAL TREATMENT STATEMENT In performing this Contract, the parties
shall not discriminate or grant preferential treatment on the basis of race, sex, color, age,
religion, sexual orientation, disability, ethnic or national origin, and shall comply to the fullest
extent allowed by law, with all applicable local, state, and federal laws relating to
nondiscrimination.
B. UNAUTHORIZED ALIENS. Consultant hereby promises and agrees to comply with
all of the provisions of the Federal Immigration and Nationality Act (8 U.S.C.A. & 1101 et seq.),
as amended; and in connection therewith, shall not employ unauthorized aliens as defined
therein. Should Consultant so employ such unauthorized aliens for the performance of work
and/or services covered by this contract, and should the Federal Government impose sanctions
against the Agency for such use of unauthorized aliens, Consultant hereby agrees to, and shall,
reimburse Agency for the cost of all such sanctions imposed, together with any and all costs,
including attorneys' fees, incurred by the Agency in connection therewith.
C. GOVERNING LAW. The Agency and Consultant understand and agree that the laws
of the State of California shall govern the rights, obligations, duties, and liabilities of the parties
to this Contract and also govern the interpretation of this Contract. Any litigation concerning this
Contract shall take place in the San Luis Obispo Superior Court, federal diversity jurisdiction
being expressly waived. n
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iumrvv
D. Agency has an interest in the qualifications of and capability of the
persons and entities that will fulfill the duties and obligations imposed upon Consultant by this
Contract. In recognition of that interest, neither any complete nor partial assignment of this
Contract, may be made by Consultant nor changed, substituted for, deleted, or added to without
the prior written consent of Agency which consent shall not be unreasonably withheld. Any
attempted assignment or substitution shall be ineffective, null, and void, and constitute a
material breach of this Contract entitling Agency to any and all remedies at law or in equity,
including summary termination of this Contract. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Contract.
E. ENTIRE CONTRACT. This Contract constitutes the entire Contract and
understanding between the parties relative to the services specified herein and there are no,
understandings, agreements, conditions, representations, warranties or promises, with respect
to this Contract, except those contained in or referred .to in this Contract and this Contract .
supersedes all prior understandings, agreements, courses of conduct, prior dealings among the
parties and documentation of any kind without limitation.
F. AMENDMENTS. This Contract may be modified or amended, or any of its provisions
waived, only by a subsequent written agreement executed by each of the parties. The parties
agree that this requirement for written modifications cannot be waived and any attempted
waiver shall be void.
n G. CONSTRUCTION AND INTERPRETATION. Consultant and Agency agree and
acknowledge that the provisions of this Contract have been arrived at through negotiation and
that each party has had a full and fair opportunity revise the provisions of this Contract and to
have such provisions reviewed by legal counsel. Therefore, any ambiguities in construing or
interpreting this Contract shall not be resolved against the drafting party. The titles of the
various sections are merely informational and shall not be construed as a substantive portion of
this Contract.
H. WAIVER. The waiver at any time by any party of any of its rights with respect to a
default or other matter arising in connection with this Contract shall not be deemed a wavier
with respect to any subsequent default or other matter.
I. SEVERABILITY. The invalidity, illegality or unenforceability, of any provision of this
Contract.shall not render the other provisions invalid, illegal or unenforceable.
J. NOTICES. -All invoices, payments, notices, demands, requests, comments, or
approvals that are required to be given by one party to the other under this Contract shall be in
writing and shall be deemed to have been given if delivered personally or enclosed in a properly
addressed envelope and deposited in a United States Post Office for delivery by registered or
certified mail addressed to the parties (deemed to have been received three (3) business days
after deposit in the U.S. Mail) at the following addresses:
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Atascadero Community Redevelopment Agency
Tierra West Advisors
Agency: Atascadero Community Redevelopment Agency
Agency Manager
6907 EI Camino Real
Atascadero, CA 93422
Consultant: Tierra West Advisors
Michael Garcia, Director
168 Annandale Road
Pasadena, CA 91105
Each party may change the address at which it gives notice by giving ten (10) days
advance, written notice to the other party.
K. AUTHORITY TO EXECUTE. The person or persons executing this Contract on behalf of
Consultant warrant and represent that they have the authority to execute this Contract on
behalf of their agency and further warrant and represent that they have the authority to bind
Consultant to the performance of its obligations hereunder.
AGREED to this day of November, 2007 by the parties as follows.
Approved as to form:
Counsel for consultant
Approved as to form:
M
Agency Attorney
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11
Tierra West Advisors
Michael Garcia, Director
ATASCADERO COMMUNITY
REDEVELOPMENT AGENCY
Wade G. McKinney, Executive Director
N
Atascadero Community Redevelopment Agency
Tierra West Advisors
CERTIFICATE OF COMPLIANCE
WITH LABOR CODE § 3700
I am aware of the provisions of Section 3700 of the Labor Code which require every employer
to be insured against liability for workers' compensation or to undertake self-insurance in
accordance with the provisions of that code, and I have complied or will comply with such
provisions before commencing the performance of the work of this contract. (Cal. Labor C.
§§1860, 1861.)
CONSULTANT
(� Michael Garcia, Director
n
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35.
EXHIBIT A r-1
SCOPE OF SERVICES
Tierra West believes that the above approach to this assignment will help to successfully provide the following
scope of services:
1. Create inventory of existing affordable and inclusionary housing, covenant review and owner
occupancy verification.
2. Analyze and recommend appropriate staffing levels to properly monitor and maintain housing records
and programs.
3. Assist staff to identify strategic partnerships with local and regional affordable housing providers and
developers.
4. Develop relevant affordable housing programs that will reflect a housing policy that will meet the
Agency's affordable housing legal requirements and needs. The programs and projects can include
but are not limited to infill housing, employer assisted housing, and loan programs.
Specifically, will undertake the following activities:
• Document and Data Collection
• Preparation of Database (Inventory of Existing Affordable housing, inclusionary housing, covenant terms
and occupants).
• Identify and Analyze partnerships with other organizations.
• Analysis of Legal Requirements and Best Practices for Atascadero Housing.
• Development of Procedures, Requirements and Needs that should be addressed in Developer Proposals
in order to assist in meeting Atascadero's Housing Obligations. ^
• Program Design and Project Activities to assist in implementing Atascadero Housing goals and t l
objectives.
• Educational Effort for elected officials, developers, non -profits, residents and community stakeholders.
• Research and Analyze Staff Time and Administration Costs and develop a recommendation for staffing
needs, time constraints, and program management.
• Preparation of first draft of Comprehensive Housing Policy.
• Review of Documents with Atascadero Staff.
• Modify Housing Policy and integrate comments.
• Review of Documents with Atascadero Staff.
• Coordinate Additional Community Outreach Meetings and Public Body Presentations.
• Prepare Final Version of Housing Policy.
1
658615.1
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KET
EXHIBIT B
Compensation
Tierra West is prepared to assist the City of Atascadero ("City") with the Affordable Housing Policy and Strategy
Development. Tierra West will provide the services on a time and materials basis for a not -to -exceed amount of
$32,130. This fee is inclusive of all normal incidental expenses associated with the project report. Such
expenses include copying, mailing costs; fax charges, overnight mail, and normal travel within the Central Coast
of California.
Billing will detail work done by individual and title. Invoices will be issued monthly and are payable upon receipt,
unless otherwise agreed upon in advance. Invoices will identify tasks completed to date, hours expended and the
hourly rate.
Tierra West Advisors rate schedule for consultant services is as follows:
Classification Rate
Principal/Director $195
Senior Associate $160
Associate/Acquisition Agent $140
Senior Analyst $115
Analyst $105
Research Assistant/Real Estate Technician $ 85
Word Processor $ 65
Clerical $ 50
Reimbursables Cost plus 10%
Reimbursable expenses include extraordinary expenses related to travel outside of the Central Coast of California
(should that be necessary), and State and County fees, if required. Such expenses would be incurred only after
receipt of authorization by the City and would be billed as a direct reimbursable at cost plus 10%.
The following table highlights activities to be accomplished for this assignment with associated costs
detailed by employee and estimated number of hours for each activity by employee.
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Atasradero Human Proposal
Teak No.
Soo eef Service
SbH
Hours Rate
Amount Subtotal amount
Director(MG)
0
195
$0
SeNer Associate (RC)
4
160
$640
1
IOck-off Meeting with Aaccadero Staff
Senior Malysl(Ztq
0
115
$0
Analyst (W)
0
105
$0
Analyst (Js)
0
105
$0
Research Assistant AB
0
50
$0
$640
Director(MG)
0
195
$0
Senior Assocato(RC)
8
160
$1,280
senior Analyst(ZU)
2
116
$230
2
Document and Data Collection
Analysl(LM)
0
105
$0
Analyst (Js)
0
105
$0
Research Assistant(AB)
0
50
$0
$1,510
Director(MG)
4
195
SM
Preparation Of Database(Inventory of PxistIng Affordable
Senior Associate (SO)
4
160
$64D
3
housing, Inclusionary housing, covenant terms and
Senior Analyst (ZU)
4
115
$460
occupants).
Ana"t (6M)
Anayst(is)
0
0
105
105
$0
$0
Reseamh Assistant AB
8
50
$400
$2280
Director(MG)
1
195
$195
Senior Aunodate(SO)
2
160
$320
4
Identify and Analym partnerships will, other organizations
Senior Analyst(ZL)
2
115
$23D
Anayet (LM)
4
105
$420
Analyst (is)
4
105
$420
Research Assistant AB
0
50
$0
$1585
Director(MG)
2
195
$390
Senior Assaciate(RC)
4
160
$640
Analysis of Legal Requirements and Best Practices for
Senior Analyst (ZU)
4
115
5460
5
Atasea na Housing
Analyst (LM)
0
105
$0
Analyst(is)
0
105
$0
Research Assistant AB
0
50
$0
$1490
Director(MG)
4
195
$780
Development of Procedures, Requirements and Needs
Senior Associate(PC)
4
4
160
115
$640
$460
6
that should be addressed in Developer Proposals in order
Senior Anayst(ZU)
105
to assist in meeting Atmeadero's Housing Obligations
Analyst (LM)
0
$0
Analyst (is)
0
105
$o
Research Assistant AB
0
50
$0
$1,880
Director(MG)
2
195
$390
Senior Assodaa(SO)
8
160
$1,280
Program Design and Project Activities to assist in
senior Analyst(Zlq
12
115
$1,380
implementing Atascadem Housing goals and objectives
Analyst (LM)
0
105
$0
Analyst (is)
6
105
$630
Research Assonant AB
0
50
$o
53680
Director [MG)
6
195
$1,170
senor Associsl0(PC)
6
16D
$960
Educational Effort for elected officals, developers, rarer
Senior Anayst(Zlq
10
115
$1,150
8
profits, residents and communiystakehOlders.
Analyst (W)
6
105
$630
Analyst (is)
0
105
$0
Research Assistant AB
0
50
$0
53910
Diacter(MG)
1
195
$195
Stanch and Analyze Staff Time and Adminatratm Costs Senior Associate (RC)
2
160
$Me
9
and develop a recommendation for staffing needs, time
Senior Analyst(ZU)
4
115
$460
constraints, and program management
Analyst(W)
Analyst(JS)
0
0
105
105
$0
$0
Research Assistant AB
0
50
$0
$975
Director(MG)
4
195
$780
Senlor Associate [RC)
8
1S
$1,280
10
Preparation of first draft of Comprehensive Housing Policy
Senior Analysl(N)
12
115
$1,380
Analyst (W)
6
105
$630
Analyst(JS)
4
105
$420
Research Assistant M
0
50
$0
54490
Dimcar(MG)
0
195
$0
Senior Associate (RC)
2
160
$320
11
Review of Documents with Aascadere Staff
Senior Analyst ZU))
2
115
$230
Analyst (LM)
0
105
$0
Analyst (JS)
0
105
$0
Research Assistant (AB)
0
50
$0
$550
Director(MG)
2
195
$390
Senior Associate (RC)
4
160
- $Mo
12
Modify Housing Policy and integrate comments
Senior Analyst (2:q
6
115
$690
Analyst(LM)
0
105
$0
Analyst(n)
0
105
$0
Research Assistant AB
0
50
SO
$1.720
Center (MG)
0
195
$0
Senior Associate (RC)
2
160
$320
13
Review of Documents with Ataccadero Staff
Senior Analyst(Zl)
2
115
$230
Analyst(IUA)
0
105
$0
Analyst (JS)
0
105
$0
Researele Assistant AB
0
50
$0
$550
Director(MG)
6
195
$1,170
Senior Associate (RC)
B
160
$1,280
Coordmaa Ad6onal Community Oulreach Meetings and
Senior Analist(ZN
6
115
$690
14
Public Body Presentations
Analyst (W)
2
105
$210
Malyst(JS)
0
105
$0
Research Assistant AB
1
50
$50
53400
Director(MG)
2
195
$390
Senior Associaa(RC)
8
160
$1,280
15
Prepare Final Vensich M Housing Policy
Senior Analyst (ZU)
12
115
$1,388
Arai (LM)
4
105
5420
Analyst (JS)
0
105
$o
Research Assistant AB
0
SD
$0
$3470
Subtotals
235
32,130
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EXHIBIT C
( ' Insurance Requirements
INSURANCE REQUIREMENTS: CONSULTANT SERVICES
The Consultant shall procure and maintain for the duration of the contract insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the performance
of the work hereunder by the Consultant, its agents, representatives, employees, or sub -consultants.
Minimum Scope of Insurance: Coverage shall be at least as broad as
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code
1 (any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.-
4.
nsurance.4. Errors and Omissions Liability insurance as appropriate to the consultant's profession.
Minimum Limits of Insurance: Consultant shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used, either the
general aggregate limit shall apply separately to this project/location or the general aggregate limit shall
be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
4. Errors and Omissions Liability: $1,000,000 per occurrence.
Deductibles and Self -Insured Retentions: Any deductibles or self-insured retentions must be declared to
and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and
volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
Other Insurance Provisions: The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Consultant; products and
completed operations of the Consultant; premises owned, occupied or used by the Consultant; or
automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special
^ limitations on the scope of protection afforded to the City, its officers, official, employees, agents or
f l volunteers.
rev 5/1/06
792119.3
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2. For any claims related to this project, the Consultant's insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees, agents and volunteers. Any
insurance or self-insurance maintained by the City, its officers, officials, employees, agents or
volunteers shall be excess of the Consultant's insurance and shall not contribute with it.
3. The Consultant's insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer's liability.
4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty
(30) days' prior written notice by certified mail, return receipt requested, has been given to the
City.
Acceptability of Insurers: Insurance is to be placed with insurers with a current A.M. Best's rating of no
less than A: VII.
Verification of Coverage: Consultant shall furnish the City with a certificate of insurance showing
maintenance of the required insurance coverage. Original endorsements effecting general liability and
automobile liability coverage required by this clause must also be provided. The endorsements are to be
signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City before work commences.
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SCOPE AND STANDARDS:
A. CONTRACT..........................................................................................................2
2.
EMPLOYMENT STATUS OF PERSONNEL: ................................................................
2
A. INDEPENDENT CONTRACTOR; EMPLOYEES OF CONSULTANT............
2
B. INDEPENDENT INVESTIGATION....................................................................
3
C. COMPLIANCE WITH EMPLOYMENT LAWS .................................................
3
D. UNLAWFUL DISCRIMINATION PROHIBITED ..............................................
3
3.
TIME OF PERFORMANCE: ............................................................................................
3
4.
COMPENSATION: ...........................................................................................................
3
A. TERMS..................................................................................................................
3
B. NO PAY FOR ADDITIONAL SERVICES WITHOUT WRITING ....................
3
5.
SUPERVISON, LABOR AGREEMENTS AND -PERSONNEL: ....................................
4
A. CONSULTANT SUPERVISES PERSONNEL ....................................................
4
B. PERFORMANCE NOT SUBJECT TO EMPLOYMENT AGREEMENTS........
4
C. APPROVAL OF STAFF MEMBERS...................................................................
4
TERMINATION................................................................................................................4
n6.
A. 30 DAYS NOTICE................................................................................................
4
B. OBLIGATIONS SURVIVE TERMINATION......................................................
4
7.
CHANGES:........................................................................................................................5
8.
PROPERTY OF AGENCY: ..............................................................................................
5
A. MATERIALS PREPARED EXCLUSIVE PROPERTY OF AGENCY ...............
5
B. CONSULTANT TO DELIVER AGENCY PROPERTY .....................................
5
9.
CONFLICTS OF INTEREST: ...........................................................................................
5
A. CONSULTANT.....................................................................................................5
10.
CONFIDENTIAL INFORMATION: ................................................................................
6
A. ALL INFORMATION KEPT IN CONFIDENCE ................................................
6
B. REIMBURSEMENT FOR UNAUTHORIZED RELEASE .................................
6
C. COOPERATION...................................................................................................
6
11.
PROVISION OF LABOR, EQUIPMENT AND SUPPLIES: ...........................................
6
A. CONSULTANT PROPERTY...............................................................................
6
B. SPECIAL SUPPLIES............................................................................................
6
12.
COMPLIANCE WITH LAW: ...........................................................................................
7
rev 511106 B-6
792119.3
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A. COMPLIANCE REQUIRED................................................................................
7
B. PREVAILING WAGES........................................................................................
7
13.
SUBCONTRACTING: ......................................................................................................
7
14.
ASSIGNABILITY: ............................................................................................................
7
15.
LIABILITY OF CONSULTANT: .....................................................................................
8
16.
INDEMNIFICATION: .................................................... .................................................
8
A. INDEMNIFICATION FOR PROFESSIONAL LIABILITY ................................
8
B. INDEMNIFICTION FOR OTHER THAN PROFESSIONAL LIABILITY........
8
C. GENERAL INDEMNIFICATION PROVISIONS ...............................................
8
17.
INSURANCE: ....................................................................................................................
9
18.
RECORDS: ........................................................................................................................
9
19.
MISCELLANEOUS PROVISIONS: ................................................................................
9
A. NONDISCRI IINATION/NONPREFERENTIAL TREATMENT
STATEMENT
................................................................................................................................
9
B. UNAUTHORIZED ALIENS ............... :.................................................................
9
C. GOVERNING LAW..............................................................................................
9
D. ASSIGNMENT OR SUBSTITUTION................................................................
10
E. ENTIRE CONTRACT.........................................................................................
10
F. AMENDMENTS.................................................................................................
10
G. CONSTRUCTION AND INTERPRETATION..................................................
10
H. WAIVER..............................................................................................................10
I. SEVERABILITY ...................................................................................................9
I. NOTICES.............................................................................................................11
K. AUTHORITY TO EXECUTE....................................................................................
11
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