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HomeMy WebLinkAboutD-2 Staff Report - Revised MOU with Metro – Rehabilitation of 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: MARCH 1, 2021 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 EAST 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. Since no certificate of appropriateness was obtained in the March 17, 2015 Cultural and Historic Preservation meeting, Staff returned the project to the Cultural and Historic Preservation Commission with the correct procedure to have the Commission 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 3/1/2021 Revised MOU with Metro – Rehabilitation of Santa Fe Depot March 1, 2021 Page 2 of 5 On September 16, 2019, the City Council approved a Memorandum of Understanding (MOU) between the City of Azusa and the Los Angeles Metropolitan Transit (Metro) Authority concerning the roles and responsibilities for the rehabilitation of the historic Santa Fe Depot. It specifically stated the funding sources for updating the plans and construction drawings. 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. Although, 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 is scheduled to start construction 3rd quarter of 2021. The proposed restoration and rehabilitation of the Santa Fe Depot will be primarily limited to the exterior of the building and site. 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 Santa Fe Depot is a rectangular, single story building, measuring approximately 28 feet by 100 feet, with a total approximate net program square footage of 2,550. Metro would occupy 1,000 square feet and the City would occupy 1,550 square feet. The project’s design and development plans and exterior site work is the responsibility of the City per the Memorandum of Understanding. The City had previously contracted with GGA (previously known as Gonzales Goodale Architects) to produce the construction plans of the building and site work. The project has currently accrued a total of $154,073.34; the breakdown is shown below by fiscal year: Fiscal Year Date Amount FY14-FY15 09/30/14 09/30/14 3,150.00 10/31/14 10/31/14 7,350.00 11/30/14 11/30/14 9,450.00 12/31/14 12/31/14 16,550.00 Revised MOU with Metro – Rehabilitation of Santa Fe Depot March 1, 2021 Page 3 of 5 02/28/15 02/28/15 10,700.00 03/31/15 03/31/15 3,275.00 04/30/15 04/30/15 17,212.50 05/31/15 05/31/15 13,937.50 06/30/15 06/30/15 25,087.50 06/30/15 06/30/15 8,362.50 Subtotal 115,075.00 FY15-FY16 07/31/15 07/31/15 5,575.00 08/31/15 08/31/15 5,575.00 09/30/15 09/30/15 2,787.50 09/30/15 09/30/15 2,000.00 12/31/15 12/31/15 2,787.50 Subtotal 18,725.00 FY16-FY17 11/30/16 11/30/16 10,787.50 12/31/16 12/31/16 1,028.24 Subtotal 11,815.74 FY 19-FY20 10/31/19 10/31/19 4,228.80 05/31/20 05/31/20 4,228.80 Subtotal 8,457.60 GRAND TOTAL 154,073.34 Due to the construction plans being about 4 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 lease of up to 1,550 square feet of the building for a maximum of 10 years. The lease agreement will be under a separate agreement that will come to City Council at a later date. Description of City's Contribution Amount Status of Payment Procurement of an architect and the development of preliminary architectural plans $145,615.00 Paid Permit/Inspection Fees $17,000.00 Credit to be utilized as project moves forward Updating the plans and more detailed construction drawings $125,894.00 Credit to be utilized as project moves forward. Budgeted in FY 20/21. Contribution of construction material and other permit fees. $211,491.00 Credit to be utilized as project moves forward City Total Contribution $500,000.00 This amount to be utilized as future lease credit between Revised MOU with Metro – Rehabilitation of Santa Fe Depot March 1, 2021 Page 4 of 5 Description of City's Contribution Amount Status of Payment Metro and City The rehabilitation of the Santa Fe Depot will be another catalyst project in the revitalization of Downtown Azusa. This project will also spur the City’s Historic Preservation Program. The historic building will be brought back to its former glory and undergo an adaptive reuse by potentially providing retail and office space. This project will also potentially create a micro-mobility hub for the City. Micro-mobility is short distance transportation provided by lightweight, usually single-person vehicles like bicycles and scooters. Metro has an existing Bike Share program at most train stations that accomplish the goals of their First and Last Mile initiative. This initiative addresses the issue of transportation at the beginning and end of an individual’s transportation journey. FISCAL IMPACT: The MOU specifies that the preparation of construction plans and the construction of the exterior site shall be the responsibility of the City to a max of $500,000.00. The City has spent $145,615.00 between FY 14 to FY 16 and budgeted $125,894.00 for FY 20/21 Professional Services Account 1035611000- 6399 budget. Therefore, the remaining balance of $228,491.00 will be requested through the FY 21/22 Capital Improvement Budget for the construction cost of the exterior site work. The following is an estimate of possible funding sources: Account Name Account Number Estimated Amount Water Conservation Account 32-40-721-791-6633 10,000.00 Public Benefit 24-40-739-082-6625 7,491.00 TDA Sidewalk 28-55-662-020-6493 20,000.00 Tree Planting 10-25-420-000-6493 16,000.00 Art in Public Places Fund 28-35-611-002-4899 50,000.00 General Fund 46-80-000-626-6493 125,000.00 Lastly, the MOU will provide a lease credit over a maximum period of 10 years. The City will enter into a separate agreement that will stipulate the term and conditions of the lease. This separate agreement will have the option to sub-lease the 1,550 square foot space and potentially extend the lease agreement. Based on current leasing rates in the Downtown, the City can potentially sub-lease the space for $2.00 a square foot. Potentially earning up to $372,000 over the span of 10 years and not accounting for Consumer Price Index (CPI). This will recover about 75% of the initial investment. Additional monies can be recovered if the city is successful in negotiating an agreement beyond the intitial term. This investment will also have a lasting impact on the growth and direction of the Azusa Downtown. The City will have the ability to select a tenant for the rehabilitated historic structure and work to implement a micro-mobility hub in the heart of the City. Prepared by: Reviewed by: Manuel Muñoz Matt Marquez Revised MOU with Metro – Rehabilitation of Santa Fe Depot March 1, 2021 Page 5 of 5 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) Revised 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 16th 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 Azusa Downtown 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, des ign, 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. Attachment 1 MOU – City of Azusa and Metro – Rehabilitation of Santa Fe Depot Page 2 of 6 G. Further, notwithstanding the provisions of this MOU, the parties understand and agree that nothing contained herein shall require City’s Planning Commission or City Council to approve any subsequent discretionary land use applications necessary for the development of the Property. NOW, THEREFORE, incorporating and in consideration of the mutual 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, although any related work may be performed by a contractor(s) procured by 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 ($1,900,000.00) in local funds to the Project. The Parties expressly recognize and acknowledge that if bids received exceed the amount of One Million Nine Hundred Thousand Dollars ($1,900,000.00), Metro maintains the right to unilaterally cancel the solicitation. However, prior to cancellation of the solicitation, the Parties will meet and confer regarding the bid amount and available options. 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. 2.03 The City has also agreed to contribute up to $232,212.00 (approximate) in construction material and time in order to lower the overall budget of the project. This amount will only be contributed after execution of this MOU. 2.04 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 ($500,000.00). As a result, it is understood and agreed that City’s total contribution shall not exceed Five Hundred Thousand Dollars ($500,000.00) (“City Total Contribution”). The parties agree that the City Total Contribution amount shall be applied as a credit to the lease payment of a portion of the floor space in the rehabilitated structure in accordance with a separate lease agreement between the City and Metro. Below is a breakdown of the City’s Total Contribution: Description of City's Contribution Amount Status of Payment Procurement of an architect and the development of preliminary architectural plans $124,894.00 Paid MOU – City of Azusa and Metro – Rehabilitation of Santa Fe Depot Page 3 of 6 Description of City's Contribution Amount Status of Payment Permit/Inspection Fees $17,000.00 Credit to be utilized as project moves forward Updating the plans and more detailed construction drawings $125,894.00 Credit to be utilized as project moves forward Contribution of construction material and other permit fees. $232,212.00 Credit to be utilized as project moves forward City Total Contribution $500,000.00 This amount to be utilized as future lease credit between Metro and City 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. 3.02 Use of Architectural Design Drawings. City agrees to provide Metro (at no cost to Metro and/or Metro’s retained contractor(s)/consultant(s)) 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)/consultant(s)). 3.03 Rehabilitation of the Facilities. Metro agrees to contract with a licensed 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 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 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 along the Azusa Downtown Station of 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 the City’s adoption of the California Building Code in effect at the time of construction, if necessary. 3.05 Construction Hours. Metro shall make best efforts to 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 City’s Public Works Director through conditions of approval between 6:00 p.m. and 10:00 p.m. MOU – City of Azusa and Metro – Rehabilitation of Santa Fe Depot Page 4 of 6 Days Allowable Hours Sunday and National Holidays Construction activities may only be allowed by the City’s Public Works Director 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 inform its contractor(s) that 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 at no cost to Metro or its contractors. 3.09 Construction Progress Meetings. Metro will hold weekly construction progress meetings with its construction contractor. The City agrees to provide representatives to participate in these meetings. 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. OWNERSHIP AND LEASE OF FACILITIES. 4.01 The Parties agree that the Property is owned by Metro. Notwithstanding, the City, will have the right to lease between 500 square feet of floor space up to 1,550 square feet of floor space within the building on the Property. In accordance with Section 2.04, City will be provided a lease payment credit in the amount of $500,000.00 over the term of the lease to be negotiated separately by the parties. 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 more 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 architectural design, prior to and/or during the course of construction only with the written approval of the other Party. Except for changes required to comply with the applicable California Building Code in effect at the time of construction, the Parties agree to a 50/50 split for all costs associated with the change. MOU – City of Azusa and Metro – Rehabilitation of Santa Fe Depot Page 5 of 6 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 exterior electrical) utility services for the structure after Project completion. Any additional cost (interior electrical and interior 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 the specific terms will be negotiated 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 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. MOU – City of Azusa and Metro – Rehabilitation of Santa Fe Depot Page 6 of 6 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: _________________________ Phillip A. Washington Chief Executive Officer Date: ________________________ Date: ________________________ APPROVED AS TO FORM: APPROVED AS TO FORM: For: CITY OF AZUSA For: LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY RODRIGO CASTRO-SILVA ACTING COUNTY COUNSEL By: _________________________ Marco A. Martinez City Attorney By: _________________________ Teddy Low Senior Deputy County Counsel Date: ________________________ Date: ________________________ I I ' \ \ \ I If\LOS ANGELES COUNTY Metro METROPOLITAN TRANSPORTATION AUTHORITY _J_ I I :!t' / , I FOOTHILL EXTENSION PHASE 2A EXHIBIT A VICINITY MAP I I I I 0 CONTRACT NO DRAWING NO EX-001 SCALE NTS SHEET NO 1 OF 1 ... Cf) Cl REV . ·;:: Cl0 a: EXHIBIT A I ----------------7-- / / / I I ,I I I 1-----------1-------r1 _-t . I -, «;_ / ! 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