HomeMy WebLinkAboutAgenda Statement 1986/08/19 Item 4 COUNCIL AGENDA STATEMENT
Item 4
Meeting Date 8/19/86
ITEM TITLE: Resolution ,,!> C%f Approving an Agreement between the City
of Chula Vista and the Girls and Boys Clubs of Chula Vista for
a loan amount not to exceed $250,000 for the construction of a
new Club facility and waiving all permit fees and approving a
second amendment to the lease agreement
SUBMITTED BY: Director of Parks an Recreation
REVIEWED BY: City Manager (4/5ths Vote: Yes No X )
During the 1985-86 budget review sessions, the Council appropriated $250,000
for a loan to the Girls and Boys Clubs of Chula Vista for the construction of
their joint facility on Oleander Avenue. At that time, Council requested
staff to work with the Clubs to develop a loan agreement for the disbursement
of funds. A copy of the proposed agreement is attached to the resolution for
your information. The Clubs are requesting a waiver of all permit fees for
this project. The lease agreement must be amended to take into consideration
the loan agreement. The proposed amendment is attached to the resolution.
RECOMMENDATION: That the City Council adopt the resolution approving an
agreement with the Girls and Boys Club for a loan amount not to exceed
$250,000 and waiving all permit fees and approving a second amendment to the
lease agreement.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
At its June 18, 1985 meeting, the Council appropriated $250,000, to be loaned
to the Clubs, interest free, on a matching basis, for the construction of a
Girls Club wing, a Boys Club wing, and a multi-purpose field at the facility
on Oleander Avenue. Council requested that the loan agreement outline how the
loan would be repaid and how the funds would be disbursed. Council also
requested that staff be involved in the development and monitoring of the
construction project and ensure that the Clubs' activities complement, rather
than compete with, the City's recreational programs. Staff was also directed
to outline the procedure for disposing of the Boys Club property at Fifth
Avenue and "I" Street.
The loan agreement has been developed with input from the Clubs and the City's
Finance, Public Works, Building and Housing and Community Development
Departments. The loan agreement calls for the Clubs to provide matching funds
and to provide proof to the City that they have sufficient funds in an escrow
account to pay for their share of the construction costs. Repayment will
begin one year after completion of the construction and end after 19 years,
with equal payments due annually.
Page 2, Item 4
Meeting Date 8/l9/86
The loan agreement requires that the Clubs complete construction within two
years from the date of issuance of permits to ensure that construction occurs
in a timely manner. Periodic inspections of the work shall be made by City
inspectors. The Clubs are seeking a waiver of permit fees to reduce their
construction costs.
A fund control service will be used to oversee the dispersal of the funds.
Funds would be deposited in increments of at least $10,000 by both parties. A
voucher system will be used to pay the contractors. A separate agreement
between the City, the Clubs and the fund control company must be entered into
before funds can be deposited. Fund control provides a reliable method for
controlling and disbursing construction funds, thus ensuring proper
accountability.
The Clubs will be required to carry one million dollars of liability insurance
and maintain property insurance for the buildings and contents in the amount
of the appraised value.
The agreement states that the City and Clubs will provide complementary
recreational programs and that the Clubs' multi-purpose field will be made
available for City recreational programs when these organizations are not
using it.
An amended lease agreement between the City and Boys Club for the property at
Fifth Avenue and "I" Street was approved by Council on August 5, 1986. The
Club will be given 90 days notice to vacate the facility, when the property is
needed for redevelopment. Approval of this amendment ensures that the Club
can use the facility until such time that the City needs the site.
The lease agreement includes a recommendation from the City Attorney's office
that the lease may be terminated if any terms of the loan agreement are
breached.
FISCAL IMPACT: $250,000 of City funds shall be disbursed during the
construction period and will be repaid over a 20-year period.
WPC 0676R
i 2" ,
by the City Council of
Chula Vista, California
Dated