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HomeMy WebLinkAboutD-2 Staff Report - MOU with Metro Santa Fe DepotSCHEDULED ITEM D-2 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MATT MARQUEZ, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: SEPTEMBER 16, 2019 SUBJECT: APPROVE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF AZUSA AND THE LOS ANGELES COUNTY METROPOLITAN TRANSIT (METRO) AUTHORITY CONCERNING THE ROLES AND RESPONSIBLITIES FOR THE REHABILITATION OF THE HISTORIC SANTA FE DEPOT LOCATED AT 130 E. SANTA FE AVENUE (APN 8608-025-801) SUMMARY: On October 6, 2000, the City of Azusa approved Chapter 55 of the Azusa Municipal Code – Historic Preservation, Article II, Section 55-47.A – Certificate of appropriateness for historic landmarks and/or historic districts requiring that: “No alteration, demolition, reconstruction, or replacement of structures may be permitted to historic landmarks and properties within historic districts, without first obtaining a certificate of appropriateness from the commission.” On February 20, 2001, the City Council approved a list of Historic Landmarks. The Santa Fe Train Depot, located at 130 E. Santa Fe Avenue, was included on that list. Construction of the historic station began in 1943 by the Santa Fe Railroad after the rail line had been constructed to facilitate the shipping of citrus and other agricultural products and to promote the residential relocation of people to the San Gabriel Valley. Construction was halted because of World War II. The station was subsequently completed in 1946 as a “chalet” design. At some point in time, the station was remodeled into a “streamline modern” design structure. On March 17, 2015, the Cultural and Historic Preservation Commission approved the rehabilitation and reuse of the Santa Fe Depot. However, Section 55-47of the Azusa Municipal Code requires a certificate of appropriateness be considered and findings be made. However, a certificate of appropriateness was not issued. This required staff to return to the Cultural and Historic Preservation Commission to ensure that the correct procedure was followed and to have the Commission once again consider and take action on a Minor Certificate of Appropriateness for the proposed project. On May 21, 2019, the Cultural and Historic Preservation Commission approved Resolution No. 2019- CHPC03 for Minor Certificate of Appropriateness No. HP-2019-04 to allow the rehabilitation and reuse of the historic Santa Fe Depot. APPROVED CITY COUNCIL 9/16/19 MOU with Metro – Rehabilitation of Santa Fe Depot September 16, 2019 Page 2 of 3 The Santa Fe Depot is a rectangular, single story building, measuring 28 feet by 10 feet, with a total square footage of approximately 2,800 SF. The building may potentially be divided into three suites. The proposed restoration and rehabilitation of the Santa Fe Depot will be primarily be limited to the exterior of the building and site. The project started in 2014 and was funded by monies from the Downtown Azusa Gold Line Station budget. The project was ready for permit issuance in 2016. However, since the construction bids came in higher than expected, the project was delayed. Metro was successful at securing additional monies for the project and is now back on track and has a deadline to complete the project by June 2021. RECOMMENDATION: Staff recommends that the City Council take the following actions: 1) Approve a Memorandum of Understanding (MOU) between the City of Azusa and the Los Angeles County Metropolitan Transit Authority (Metro), subject to any non-substantive changes; and 2) Authorize the City Manager execute the Memorandum of Understanding (MOU), in a form acceptable to the City Attorney, on behalf of the City. ANALYSIS: The project’s design and development plans are the responsibility of the City. The City had contracted with Gonzalez Goodale Architects to produce the construction plans of the building and site work. The project has currently accrued a total of $120,528.24; the breakdown is below by year: Year 1 (FY 14/15) - PO 023158 - $89,987.50 Year 2 (FY 15/16) - PO 024256 - $18,725 Year 3 (FY 16/17) - PO 026113 - $11,815.74 Due to the construction plans being about 3 years old, the construction plans need to be updated to meet current California Building Codes. All of the monies expended on the project and any fees waived will be allocated and utilized as a form of payment for the sub-lease of up to 1,300 square feet of the building. Under a separate MOU, Metro and the City will enter into an agreement to allow the City to sub-lease. This agreement will come to City Council at a later date. FISCAL IMPACT: The MOU specifies that all construction plans shall be the responsibility of the City. Therefore, all cost associated with the construction plans will be paid by the City. These associated costs will be paid from the Professional Services Account 1035611000-6399. MOU with Metro – Rehabilitation of Santa Fe Depot September 16, 2019 Page 3 of 3 Prepared by: Reviewed by: Manuel Muñoz Matt Marquez Planning Manager Director of Economic and Community Development Fiscal Reviewed by: Reviewed and Approved by: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachments: 1) MOU with Metro – Rehabilitation of Santa Fe Depot MEMORANDUM OF UNDERSTANDING FOR REHABILITATION OF THE AZUSA SANTA FE DEPOT This Memorandum of Understanding ("MOU") is entered into this _____ day of September 2019, by and between the Los Angeles County Metropolitan Authority (“Metro”), a California county transportation authority existing under the authority of Sections 130050.2 et seq. of the California Public Utilities Code with its principal place of business at One Gateway Plaza, Los Angeles, CA 90012 and the City of Azusa, California (the "City"), a California municipal corporation, with its principal place of business at 213 East Foothill Boulevard, Azusa California 91702. Metro and the City are sometimes individually referred to as a "Party" and collectively as "Parties." RECITALS The parties enter into this MOU on the basis of the following facts, understandings, and intentions. A.Metro owns certain real property located at 130 E. Santa Fe Avenue, Azusa, CA 91702, a portion of which is proposed to be developed and leased to the City as a facility commonly known as the Azusa Santa Fe Depot (“Property”). The Property is more particularly described in Exhibit "A"- Legal Description attached hereto and made a part of this MOU. B.Metro operates a public transportation system, including rail transportation services, for the benefit of residents in the County of Los Angeles and the City. C.Metro has obtained funding for the rehabilitation of the Property and related site improvements. Metro is seeking to partner with the City in order to improve the Property and enhance the aesthetics and functionality of the transportation infrastructure located within the City of Azusa’s Transit-Oriented Development Specific Plan Area (generally referred to as the “Project”). D.The City of Azusa is a full-service City currently administrating both policies and projects that promote Transit Oriented Development and Transit Oriented Communities, including a mix of housing, transportation infrastructure, and retail development adjacent to the existing Downtown Azusa Metro Gold Line Rail Station and Intermodal Transit Center. E.In September 2014, the City procured architectural and design services for the rehabilitation of the Property; and in May 2019 the City’s Cultural and Historic Preservation Commission approved Resolution No. 2019-CHPC03 approving a Minor Certificate of Appropriateness for the rehabilitation of the Property and classified the Project as Categorically Exempt from (the) CEQA. F.Metro and the City wish to enter into this MOU to provide direction for the development of the Property, including the joint financing, planning, design, construction and use of components of the Property. This MOU solely pertains to the planning and construction phases required for the rehabilitation of the Property. The City and Metro will negotiate a separate agreement for the lease of any premises on the Property. NOW, THEREFORE, incorporating and in consideration of the mutual Attachment 1 MOU – City of Azusa and Metro – Rehabilitation of Santa Fe Depot Page 2 of 5 covenants contained herein, parties mutually agree to the following: SECTION 1: PROJECT SCOPE. 1.01 The Project generally consists of the renovation and rehabilitation of the Property, situated along Metro’s Gold Line route and directly adjacent to the line’s Azusa Downtown Station. A more complete description of the scope of the Project is attached hereto as Exhibit "B"- Architectural Design Drawings to this MOU. The scope of work under this Project generally includes the renovation and rehabilitation of the exterior and interior of the Property, including any demolition, debris removal, and clean-up. Work for the Project will be performed by a competitively solicited construction contract under the administration of Metro. Hazmat remediation shall be the responsibility of Metro. SECTION 2. PROJECT FUNDING. 2.01 Metro Funding. The Parties agree that Metro will serve as funding source for the construction of the Project. Metro will contribute an amount not to exceed One Million Nine Hundred Thousand Dollars ($1,900,000) in local funds to the Project. 2.02 The Parties agree that the City has already contributed to the project a total of $124,894.00 for the procurement of an architect and the development of preliminary architectural plans and will additionally contribute approximately $125,894.00 for updating the plans and more detailed construction drawings, to the extent necessary. The City has also agreed to waive any and all City related fees and costs associated with the Project. The City has also agreed to waive approximately $17,000.00 in permit and inspection fees during the planning and construction phases of the Project. It is estimated that the total amount of fees, costs and staff time to be contributed by City amounts to approximately Five Hundred Thousand Dollars. As a result, it is understood and agreed that City’s total contribution shall not exceed Five Hundred Thousand Dollars ($500,000.00). SECTION 3. PROJECT DEVELOPMENT AND MANAGEMENT. 3.01 Preconstruction and Environmental Activities. The Parties agree to meet on a monthly basis and discuss the design of the Project, the preparation of conceptual design plans, and the ongoing Project budget. The City agrees that it will expeditiously take all actions necessary to facilitate the approval of the Project, including, but not limited to, conducting any public hearings required for the Project, the review of all appropriate State and/or environmental documents, and the issuance of construction permits after any Project approval. 3.02 Use of Architectural Design Drawings. City agrees to provide Metro (at no cost to Metro) with Architectural Design Drawings for Construction-Bid and Construction phases of the Project previously procured by City. City also agrees to provide Architectural Design support services during all phases of the Project (at no cost to Metro or Metro’s retained contractor(s)). City’s contribution of Architectural services shall be applied to the lease of a portion of the floor space in the rehabilitated structure in accordance with a separate lease agreement between City and Metro. 3.03 Rehabilitation of the Facilities. Metro agrees to contract with a qualified contractor(s) to construct the Project. Metro agrees to obtain contractor's bids together with bid bonds to construct the Project as soon as practicable after approval MOU – City of Azusa and Metro – Rehabilitation of Santa Fe Depot Page 3 of 5 of this MOU by the City. Metro will be solely responsible for the review of bids received to determine the lowest responsible and responsive bidder. Metro shall comply with all applicable state and federal laws governing the bidding and construction of such projects. As specifically described in Exhibit “B”, the Project construction shall include, but not be limited to, the installation of all systems necessary for the proper functioning of the physical structure, including but not limited to the relocation and modification of utilities, and installation of landscaping and irrigation around the structure. At Metro’s Sole discretion rehabilitation may also include the construction of any and all ancillary facilities to serve the Project by the Azusa Station, along the Gold Line. 3.04 Construction Oversight. Metro also agrees to be responsible for any construction management and inspection oversight for the Project. City will conduct standard building inspections as required per 2016 California Building Code. 3.05 Construction Hours. Metro will ensure that its construction contractor's activities do not interfere with the daily activities taking place at adjacent City property and in accordance with all City codes and ordinances. The set hours are subject to the agreement of both parties, as shown below: Days Allowable Hours Monday through Saturday 7:00 a.m. to 6:00 p.m. Extended construction hours may only be allowed by the review authority through conditions of approval between 6:00 p.m. and 10:00 p.m. Sunday and National Holidays Construction activities may only be allowed by the review authority through conditions of approval between 9:00 a.m. and 5:00 p.m. 3.06 Contractor’s Work Areas and Staging Areas. Metro will coordinate with the City to ensure that contractor’s work and staging areas are approved by the City and that the contractor will be solely responsible for the work and staging area including the equipment and materials stored in staging area, as well as its tools and supplies and safety of its personnel. 3.07 Site Cleanup. Metro will ensure that the contractor shall, at the end of each workday, clean the job site and store all equipment and material in a neat and orderly manner; that the contractor shall remove all waste generated by the contractor from the site on a timely basis; and that at the completion of the Project, the contractor shall clear and clean the job site of all materials and waste resulting from its work within 48 hours of final acceptance of the Property by Metro. 3.08 Parking and Traffic Control. The City will allow designated parking for the Metro Contractor and/or its designees. Location of parking spaces and laydown areas will be identified and agreed upon by the City and Metro. In addition, any traffic control or traffic control plans shall be submitted to the City and will be subject to standard City traffic control standards. Traffic control plans shall be subject to the approval/disapproval of the City. The City shall provide parking passes to the Contractors. 3.09 Construction Progress Meetings. Metro will hold weekly construction progress meetings with its construction contractor. The City agrees to provide representation to participate in these meetings. MOU – City of Azusa and Metro – Rehabilitation of Santa Fe Depot Page 4 of 5 3.10 Project Approvals. The City agrees that it will expeditiously take all actions necessary to approve the Project, including, but not limited to, conducting any public hearings required for the Project, the review of all appropriate State and/or environmental documents and the issuance of construction permits. SECTION 4. OWNSERSHIP AND LEASE OF FACILITIES. 4.01 The Parties agree that the Property is owned by Metro; and that the City, will have the right to lease 500 square feet minimum to a max of 1,300 square feet of the Property in exchange for the funding per Section 2.02 and 3.02 of this MOU. Within 90 days of the conclusion of the construction of the Project, the Parties agree to enter into a separate lease agreement memorializing such leasing rights. Such lease agreement shall be for no less than ten (10) years and will provide the City with exclusive use of the lease premises, subject to Metro approval for any uses of the Property. SECTION 5. CHANGE ORDERS 5.01 Metro or the City may agree to changes in previously approved design for work, prior to and during the course of construction only through approval of the other Party. The Party initiating the change will be responsible for funding the change. 5.02 In the event of any dispute, controversy or claim arising between the City and Metro in connection with or relating to this agreement or any construction involving or otherwise related to the Project, the parties shall make good faith efforts to resolve the dispute through negotiations at City and Metro Project Manager level. Any dispute that cannot be settled through these Project Manager negotiations shall be escalated to Metro Senior Executive Officer and City Manager for final determination. SECTION 6. UTILITIES. 6.01 The City agrees to provide the following utility services for the Project and its structures: reasonable amounts of water, electricity, emergency power, storm and sanitary sewer during construction. Metro will be responsible for the payment of base (exterior landscaping water and electrical) utility services for the structure after Project completion. Any additional cost (interior electrical and water) for utility services generated by increased usage of the facility will be the responsibility of the Party generating this additional cost. The Parties agree that any charges to Metro for utilities during construction will be agreed upon by Metro and the City prior to the initiation of construction and included in the lease agreement. SECTION 7. MISCELLANEOUS. 13.01 Indemnification. Notwithstanding any provision in this MOU to the contrary, whether expressed or implied, City shall indemnify, defend, and hold harmless Metro, its elected and appointed officers, employee and agents from and against any and all liability, including but not limited to demands, claims, actions, fees, costs, and expenses (including attorney and expert witness fees) arising from or connected with City (and/or City’s third-party vendors/contractors) acts and/or omissions and as such would be imposed in the absence of California Government Code Section 895.2. Notwithstanding any provision in this MOU to the contrary, whether expressed or implied, Metro shall indemnify, defend, and hold harmless the City, its elected and MOU – City of Azusa and Metro – Rehabilitation of Santa Fe Depot Page 5 of 5 appointed officers, employee and agents from and against any and all liability, including but not limited to demands, claims, actions, fees, costs, and expenses (including attorney and expert witness fees) arising from or connected with Metro (and/or Metro’s third-party vendors/contractors) acts and/or omissions and as such would be imposed in the absence of California Government Code Section 895.2. 13.02 Insurance. Each Party shall obtain and maintain general liability insurance for injuries or damages to third parties arising out of each Party's use of the Property, and each Party will ensure that the other Party is listed as an additional insured on each applicable policy. 13.03 Governing Laws and Venue. This MOU has been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California. In the event of any legal action to enforce or interpret this MOU, the sole and exclusive venue shall be a court of competent jurisdiction located in Los Angeles County, California. 13.04 Severability. If any term or portion of this MOU is held to be invalid, illegal, void or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this MOU shall continue in full force and effect. IN WITNESS WHEREOF, the Parties have executed this MOU as of the date first above written For: CITY OF AZUSA For: LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY By: _________________________ Sergio Gonzalez City Manager By: _________________________ Richard F. Clarke Chief Program Management Date: _________________________ Date: _________________________ APPROVED AS TO FORM: APPROVED AS TO FORM: For: CITY OF AZUSA For: LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY MARY C. WICKHAM COUNTY COUNSEL By: _________________________ Marco A. Martinez City Attorney By: _________________________ Teddy Low Senior Deputy County Counsel Date: _________________________ Date: _________________________