HomeMy WebLinkAbout2001-06-19; City Council; 16230; Federal Grant Funds & Join Hands-Save a LifeCITY OF CARLSBAD - AGENDA BILL
AB# fdp23~ TITLE:
MTG. 6-i ?- o/ APPROVAL OF DOCUMENTS FOR USE OF FEDERAL
GRANT FUNDS AND REQUEST FOR EXTENSION ON
DEPT. H/RED USE OF FUNDS BY JOIN HANDS-SAVE A LIFE
DEPT. HD. @
CITY ATTY. 6@
CITY MGR.
RECOMMENDED ACTIONS:
Adopt Resolution Nos.adb( -/7 0 and &61-/f/ approving the Subrecipient Agreement and related loan
documents for use of $80,000 in 2000-2001 federal Community Development Block Grant funds by the Join Hands-Save a Life organization, and approving Join Hands-Save a Life’s request for extension to
use CDBG funds on development of a youth center.
ITEM EXPLANATION:
Fundinq Backqround. Join Hands-Save a Life is a Carlsbad based non-profit organization which provides
positive alternatives to gang recruitment through sports and other recreational or social activities. During
program year 1994-95, the City provided Join Hands-Save a Life with $81,599.20 in Community
Development Block Grant (CDBG) funds to purchase property on the west side of Roosevelt Street
between Pine Avenue and Walnut Avenue. Join Hands purchased the property and initiated efforts to
obtain the appropriate land use permits to construct a youth facility on the site.
Between 1995 and 1999, the City allocated an additional $312,397.80 in CDBG funds to Join Hands for
the purpose of constructing the noted youth facility. A subrecipient agreement and related loan
documents for use of those funds were approved by the City Council on October 19, 1999. The subject
agreement was executed by Join Hands on November 20, 2000. To date, approximately $44,000 of the
funds ($312,397) have been used to pay for predevelopment activities required to obtain a City building
permit. These costs include architectural and engineering fees, permit fees and other costs related to
processing plans for building permits. Join Hands has addressed nearly all issues needing to be resolved
prior to issuance of the required building permit for the project. It is anticipated that the building permit
plan check process will be complete within the next few months.
In program year 2000-2001, an additional $80,000 in CDBG Program funds were allocated for
construction of the proposed Join Hands facility. A condition was placed on this additional $80,000 which
requires Join Hands to match one dollar ($1) in cash funds raised by their organization for every two
dollars ($2) of 2000-2001 CDBG cash funds to be used on the project. With approval of this additional
CDBG funding, another subrecipient agreement and set of related loan documents are required before
Join Hands may receive the $80,000.
Subrecipient Agreement. The attached subrecipient agreement and related loan documents have been
prepared for the additional $80,000 in CDBG to be provided to Join Hands. These documents were signed
by Join Hands as of April 10, 2001 and now require City Council approval for execution purposes. The
agreement and related documents incorporate the matching funds condition as noted above and also include the following terms:
l CDBG funds for construction of the Join Hands facility shall be provided in the form of a no
interest, deferred and forgivable loan.
l Term of the loan is 20 years, and forgivable upon expiration of term.
l Loan is not assumable without prior written approval of Council.
l Loan is due if property is sold or transferred, or if Join Hands does not operate facility in a manner
which is consistent with the approved Major Redevelopment Permit.
l Loan is secured by the property.
Page 2 of Agenda Bill No. /6: 2 3b
With the exception of the matching funds requirement, the above conditions were also included in the
previously approved agreement for the $312,397.80 in CDBG funds and related documents for
development of the Join Hands youth center. These conditions were required by the City Council due to
the significant amount of funding provided to the Join Hands organization.
It is important to note that when the $80,000 was originally allocated by the City Council a condition was
placed on the project, at the recommendation of the Citizens’ Advisory Committee, that required the
building permit to be obtained for the youth facility by September 1, 2000. The intent was to motivate Join
Hands to move forward more quickly on their project. Join Hands initiated the building permit process by
submitting an application in August, 2000. However, the building permit was not issued by the original
date noted for various reasons. Because staff believes that Join Hands has been making a good faith
effort to date to move forward to obtain the required building permit for the proposed youth facility, it is
staff’s recommendation that the City Council allow Join Hands to retain the $80,000 allocation with the
understanding that Join Hands will obtain the required building permits by no later than the end of
September, 2001.
Staff is recommending that the City Council approve the attached subrecipient agreement for the
additional $80,000 in 2000-2001 CDBG programs at this time. The previous agreement has already been
approved by the Council and executed by Join Hands. With approval of the attached documents, Join
Hands will be eligible to receive the additional $80,000 with proof that they have met the matching funds
requirement.
Request for Extension. The subrecipient agreements for CDBG funds require that the subrecipients
expend their funds within one (1) year. If an organization receiving CDBG funds is unable to expend the funds within one (1) year, the organization must request an extension from the Housing and
Redevelopment Director. These extensions are typically granted if the Housing and Redevelopment
Director believes there is good cause for granting the extension and it appears that a good faith effort has
been made by the organization to expend the funds during the year. In past years, Join Hands has
requested several extensions for the use of their allocated CDBG funds. These extensions were granted
because the Housing and Redevelopment Director believed that Join Hands was making a good faith
effort to process their land use and related building permits for the subject youth facility on Roosevelt
Street. On July 10, 2000, the Housing and Redevelopment Director administratively granted a third
extension for use of the $312,397 in CDBG funds noted above to June 30, 2001. At the time of the
extension, the Director indicated that no additional extensions would be granted without the consent of the
City Council. If the Council so desires, an additional one year extension could be granted for use of the
previous $312,397 in CDBG funds. In addition, if the Council agrees to allow Join Hands to retain the
additional $80,000 in CDBG funds awarded for program year 2000-2001, the Council will also need to
extend the use of those funds for an additional one (1) year period.
Join Hands has a number of reasons for the various delays in expending the allocated CDBG funds and
moving forward on permits for construction of the proposed youth facility, some of which have been within
the control of the organization and some which were not within their control. Most recently, Join Hands
had planned to use volunteers to complete elements of the construction project if sufficient funds were not
available to complete the entire project with paid contractors. However, federal officials have indicated
that CDBG regulations will not allow the use of volunteers if wages are paid to any other workers on the
project. This means that Join Hands must obtain bids for the project which include prevailing wage rates
for all persons working on the construction project. Join Hands has obtained proposals to construct the facility, but all proposals have been rejected by the organization due to the fact that inadequate funds are
available to fund the construction without using volunteers. Construction estimates submitted by Join
Hands for the proposed project indicate that approximately $780,000 will be needed to complete the
project. Currently, the funds approved to date and that allocation which is pending would provide
approximately 63% of the funding required to complete the proposed project. Join Hands, however, has
expressed confidence that the organization will be able to raise the funds needed to construct the facility.
Page 3 of Agenda Bill No. 16,230
Although staff is recommending that the City Council grant the requested extensions for use of the CDBG
funds and approve the related subrecipient agreement, staff has indicated to Join Hands that no further
CDBG funds will be released for the project until documentation is provided to indicate that sufficient funds
are available to Join Hands to complete the proposed project. Join Hands has submitted a request for an
extension to use CDBG funds until June 30, 2002 to allow them time to raise sufficient funds and
complete the project. (Exhibit 5). Therefore, staff is recommending approval of an extension for utilization
of all previously allocated CDBG funds on balance at this time (approximately $350,000) to June 30, 2002.
If the funds are not
FISCAL IMPACT:
No fiscal impact on
EXHIBITS:
expended by that date, staff will return to the Council for further direction.
the General Fund. The project will be funded through the federal CDBG program.
1. Resolution No. 206 l- 170 approving agreements with Join Hands-Save a Life for federal
CDBG funds.
2. Resolution No. Jo6 ( - l-7 I approving Join Hands-Save a Life request for extension to use
CDBG funds for a Youth Center.
3. Subrecipient Agreement between the City and Join Hands-Save a Life for use of $80,000 in 2000-2001
CDBG funding.
4. Promissory Note from Join Hands-Save a Life.
5. Deed of Trust and Security Agreement.
6. Request for Extension on Use of Funds
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CITY COUNCIL RESOLUTION NO. 2 0 0 I- 17 0
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING AGREEMENTS FOR THE CITY OF
CARLSBAD’S FED&AL COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM.
WHEREAS, the City Council of the City of Carlsbad, California has selected programs to
receive funding under the City’s Community Development Block Grant (CDBG) Program; and
WHEREAS, the City Council of the City of Carlsbad, California has considered the required
agreements for providing Community Development Block Grant funds to the Join Hands-Save a Life
organization for construction of a youth facility; and
WHEREAS, the City Council has taken all testimony into account;
NOW, THEREFORE, BE IT RESOLVED as follows:
1. That the above recitations are true and correct.
2. That the City Council hereby approves a Subrecipient Agreement and related loan documents
for use of $80,000 in 2000-200 1 Community Development Block Grant funds by Join Hands-
Save a Life.
3. That the Mayor is authorized to sign the agreements on behalf of the City of Carlsbad.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Carlsbad,
California, on the 19th day of June ,2001, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Finnila,and Nygaard.
NOES: None.
ABSTAIN: Council Member Hall.
ABSENT: None.
ATTEST: n
JC RESO NO.
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CITY COUNCIL RESOLUTION NO. 20 0 1 - 17 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A REQUEST FOR EXTENSION TO USE
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS FOR
DEVELOPMENT OF A YOUTH CENTER.
WHEREAS, the City of Carlsbad has received a request from Join Hands-Save a Life for
extension to use Community Development Block Grant (CDBG) Program funds pursuant to previously
approved agreements between the City and Join Hands-Save a Life, and
WHEREAS, the City Council of the City of Carlsbad, California has considered the request and
agrees to approve a one year extension for use of the funds; and
WHEREAS, the City Council has taken all testimony into account;
NOW, THEREFORE, BE IT RESOLVED as follows:
1. That the above recitations are true and correct.
2. That the City Council hereby approves an extension to use CDBG funds pursuant to
previously approved subrecipient agreements with Join Hands-Save a Life for development of
a Youth Center until June 30,2002, with the condition that none of the remaining funds shall
be disbursed to the Join Hands organization until Join Hands certifies to the City in writing
that the subject funding together with other financing is projected to be sufficient to pay all
estimated construction and other related development costs for the proposed youth center.
3. That the written certification to be provided to the City by Join Hands shall include a
construction budget with project expenses and revenues with proof of revenues which are
available for use on the proposed project.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Carlsbad,
California, on the 19th day of June ,2001, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Finnila,and Nygaard.
NOES: None.
ABSTAIN: Council Member Hall.
ABSENT: None.
ATTEST:
CC FESO NO. 1
EXHIBIT 3
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RECORDING REQUESTED BY:
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk’s Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad, Ca. 92008
Nlc It 2001-0436157
JUN 27, 2OOl 2:48 i=W
OFFICIW, RErnB SAN DIEGO iitlWTY RECORDER’S UFFICE
13207
GREGURY ;.&lfITH~ COUNTY REIBRDER : 61.00
l~lll1ll~lll1l~lllRlllll~~llull~llll~~IIlIIl 2001-0436187
)W (Space above for Recorder’s Use)
AGREEMENT BETWEEN THE CITY OF CARLSBAD AND
JOIN HANDS i SAVE A LIFE FOR
FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
THIS AGREEMENT, made and entered into as of this 25th day of June 2001_
by and between the CITY OF CARLSBAD, a municipal corporation, hereinafter referred to as “City”,
and JOIN HANDS - SAVE A LIFE, a non-profit corporation, hereinafter referred to as “Subrecipient”.
RECITALS
WHEREAS, the City has applied for and received funds from the United States Government
under Title I of the Housing and Community Development Act of 1974, Public Law 93-383 as amended
to fund eligible activities which benefit persons of low and moderate income; and,
WHEREAS, the City has the need to provide assistance to non-profit public service providers
who offer programs, activities and services to low and moderate income youths within the community;
and,
WHEREAS, the Subrecipient has been, and desires to continue, providing these services for low
and moderate income youths with assistance from the City and construction of a new youth facility; and,
WHEREAS, the Redevelopment Agency has approved the appropriate discretionary land use
permit and conducted an environmental review which resulted in issuance of a Negative Declaration for
construction of the new Join Hands - Save a Life Youth Facility pursuant to the Guidelines for
Implementation of the California Environmental Quality Act; and,
WHEREAS, the U.S. Department of Housing and Urban Development has approved Annual
Consolidated Funding Strategies and Plans for Community Development Block Grant funds for the City
(hereinafter referred to as “Annual Consolidated Plans”).
NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained
herein, City and Subrecipient agree as follows:
1. STATEMENT OF WORK AND DESCRIPTION OF LOAN
For Program Year 2000-2001, the City of Carlsbad has allocated federal Community
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Development Block Grant (CDBG) funds in the total amount of eighty thousand dollars
($80,000) for construction of a new youth facility to be owned and operated by the Join Hands-
Save a Life organization. This funding shall be provided in the form of a no interest, deferred,
and forgivable loan to the Join Hands Organization. The purpose of the loan is to provide funds
to be used specifically for costs related to the construction of a new, single floor youth facility
which shall be no larger than 6,175 square feet in size.. The facility shall be constructed on
property located on the west side of Roosevelt Street between Pine and Walnut Streets in the
City of Carlsbad, California, which was previously purchased with federal funds. The
Subrecipient agrees to use all federal funds provided by the City to the Subrecipient pursuant to
the provisions of this Agreement, the Scope of Work, attached hereto as Exhibit “A”, and in
accordance with the terms of the Annual Consolidated Plan.
Every effort shall be made by the Subrecipient to expend the allocated funds in their entirety by
June 30, 2001. If the Subrecipient will be unable to expend all of the funds allocated to the
project by the noted date, the Subrecipient shall request an extension from the City for continued
use of the funds on the approved project based on progress made by the Subrecipient towards
completing the subject project. The City will either agree to grant the extension or notify the
Subrecipient that the funds must be reallocated to another eligible activity due to slow project
progress.
2. TERM OF LOAN
The term of this loan shall be for a period of twenty (20) years. The twenty year term of the loan
shall commence on the date the Promissory Note is executed and recorded and expire twenty (20)
years after the final Certificate of Occupancy is issued for the subject facility. Subrecipient
acknowledges that the subject loan is given in connection with the construction and operation of
a youth facility only. The loan is not assumable by transferees of the Property unless prior
written approval is granted by the City Council. The loan shall be due and payable in full upon 1)
the date the Property is first sold or transferred, or, 2) upon failure of Subrecipient to operate a
‘facility for low and moderate income youths and teens consistent with the requirements of the
permits governing the use of the facility and the Subrecipient’s application to the City requesting
financial assistance, whichever occurs first. The loan shall be forgivable upon expiration of the
term of the loan if the facility has been maintained and operated as a youth facility consistent
with the requirements of the permits governing the use of the facility for the full term of the loan
and other conditions as set forth within this Agreement.
3. DISBURSEMENT OF FUNDS
The City shall disburse no greater than eighty thousand dollars ($80,000) of the loan proceeds for
the construction of the proposed facility and/or payment of permit fees. Loan proceeds for
construction purposes and/or permit fees will be disbursed only after the City has received the
Subrecipient’s disbursement request and any required documentation to support the request. If a
payment is to be made directly to the contractor the Subrecipient must certify in writing that the
work for which disbursement is requested has been completed (although the City reserves the
right to inspect the work and make an independent evaluation), and authorizes the City to pay the
contractor or provider directly.
The loan proceeds up to the maximum allocation of $80,000 shall not be disbursed by the City to
the Subrecipient until all of the following conditions are satisfied:
(a) Contractor Estimate. Subrecipient shall provide to the City a minimum of
three (3) estimates of the construction costs for all improvements set forth and
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required by approval of Major Redevelopment Permit 97-03. The cost estimates must
be submitted by a general contractor currently licensed to conduct business within
the State of California.
(b) Budget. Subrecipient shall certify to the City in writing that the City Loan,
together with any other financing to be provided by or obtained by Subrecipient, is
projected to be sufficient to pay all estimated construction, and other related
development costs of the proposed project. This certification shall include a
construction budget with project expenses and revenue for said project. Payment for
eligible expenses shall be made in accordance with said construction budget to be
provided as Exhibit “B” to this Agreement and in accordance with performance.
Subrecipient must certify that the budget includes only allowable costs and an
accurate analysis of costs applicable to the CDBG funds pursuant to 24 CFR Part
502.
(c) Execution, Delivery and Recordation of City Loan Documents. Subrecipient
shall execute and deliver to the City a Deed of Trust and Security Agreement and
Promissory Note, and any other documents and instruments required to be executed
and delivered to secure said loan, all in form and substance satisfactory to the City
Attorney for the City of Carlsbad. The Deed of Trust to secure the loan shall be
recorded against Subrecipient’s fee interest in the Land described herein.
(d) Matching Funds. Subrecipient shall submit documentation to the City to
verify that matching cash funds (non-City and non-federal) of at least one dollar have
been spent on construction related costs for every two dollars in CDBG funds
requested for payment or reimbursement of construction expenses.
(e) Building Permits. Subrecipient shall obtain approval by the City of all
required building permits for construction of the subject facility and related
improvements.
(f) Construction Contracts. Subrecipient must submit and receive City approval
of all contracts that the Subrecipient has entered, or proposed to enter into, for
construction of the subject facility. Each construction contract that the Subrecipient
enters for construction of the proposed facility shall provide that at least ten percent
(10%) of the costs incurred shall be payable only upon completion of said
contractor’s construction.
Upon satisfaction of the conditions set forth above, the City shall promptly disburse the City
Loan proceeds to Subrecipient from time to time upon receipt of written requests from the
Subrecipient. The written requests for loan disbursements shall be accompanied by a copy of the
bill or invoice covering a cost incurred or to be incurred. No more than 90 percent of the total
agreed upon loan disbursements will be paid during the performance of this Agreement. The
balance due (remaining 10 percent) shall be paid upon final certification by the City that
Subrecipient has administered the activities in compliance with all applicable Federal, state, and
local rules and regulations governing these funds, and in a manner satisfactory to the City.
4. PROGRAM INCOME
The Subrecipient shall report, to the City, any interest, or other income, earned as a direct result
of the use of federal CDBG funds for the project outlined within this Agreement. All reported
program income may be retained by the Subrecipient for costs related to the subject program
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activities. However, the program income, retained by the Subrecipient, must be expended before
additional funds are requested from the City. The requirements are set forth in the federal
regulations Section 570.504 which are incorporated herein by reference.
5. LABOR, MATERIALS AND SUPPLIES:
The Subrecipient shall furnish all labor, materials and services and bear all expenses necessary to
construct the subject project and subsequently provide the proposed programs as outlined in this
Agreement. Under this Agreement, the City’s only financial obligation to the Subrecipient is to
provide the CDBG funds of $80,000 maximum in the form of a no interest, deferred and
forgivable (after 20 years) loan as approved by the City Council for facility construction
purposes.
6. RECORDS AND REPORTS
As applicable, the Subrecipient shall maintain all records required by the Federal regulations
specified in 24 CPR Part 570.506 that are pertinent to the construction activities to be funded
under this Agreement. Such records may include, but are not be limited to:
a. Records providing a full description of each activity undertaken;
b. Records demonstrating how each activity undertaken meets one of the National Objectives of
the CDBG program;
c. Records required to determine the eligibility of activities;
d. Records demonstrating compliance with Section 570.505 regarding change of use of real
property acquired or improved with CDBG assistance;
e. Records demonstrating compliance with the requirements in Section 570.606 regarding
acquisition, displacement, relocation, and replacement housing;
f. Records documenting compliance with the fair housing and equal opportunity components of
the CDBG program;
g. Documentation of all CDBG funds received from the City, eligible expenses incurred for
administration of each activity, and other financial records as required by 24 CFR Part
570.502, and OMB Circular A-l 10; and,
h. Any other related records as the City shall require to demonstrate compliance with applicable
Federal, state, and local rules and regulations governing these funds.
The Subrecipient shall submit quarterly “Progress Reports” within fifteen (15) calendar days of
the end of each quarter for the full term of this Agreement. An annual progress report is due no
later than July 15’ each year during the term of this agreement. The report must include
sufficient information to assist the City in monitoring the Subrecipient’s performance as related
to construction of the subject facility. The Subrecipient must demonstrate satisfactory
performance prior to receiving loan disbursements for the subject project.
For the full term of the subject loan, the Subrecipient shall provide quarterly performance reports
as related to the clients served by the subject facility following final Certificate of Occupancy.
The performance reports shall include the following information:
Total number of persons/households participating in the program during reported period;
Total number of participants from Carlsbad;
Number of low/moderate income Carlsbad persons/households participating in the
program during the reporting period;
Age and ethnic background of Carlsbad participants; and,
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e. Summary of program(s) provided to Carlsbad participants.
The Subrecipient shall maintain client data demonstrating client eligibility for services provided.
Such data shall include at the minimum client name, address, ethnicity, income level or other
basis for determining eligibility, and description of service provided. This data shall assist the
Subrecipient in completing the required quarterly progress reports to be submitted to the City.
The Subrecipient shall maintain separate accounting records for the federal CDBG funds
provided by the City. The City, Federal Grantor Agency, Comptroller General of the United
States, or any of their duly-authorized representatives shall have access to all books, documents,
papers and records maintained by the Subrecipient which directly pertain to the above project for
the purpose of audit, examination, excerpts and transcriptions.
Unless otherwise notified by the City, the Subrecipient shall retain all financial records,
supporting documents and statistical reports related to the project identified under this agreement
for a period of three (3) years after the termination of all activities funded under this Agreement.
All records subject to litigation, claims, audit findings, negotiations, or other actions must be
retained for three (3) years from the date such action commenced or until completion of the
action and resolution of all issues by the appropriate officials and the Subrecipient has been
given official written notice, whichever occurs later.
For each fiscal year during the full term of the subject loan, the Subrecipient shall be required to
submit to the City a comprehensive financial audit prepared by an independent, neutral third-
party auditor. The audit shall cover financial operations of the Subrecipient for the period from
July 1 to June 30 for each year this Agreement remains in effect. The required audit shall be
submitted to the City no later than October 1 for the preceding fiscal year of operations.
.
7. PROGRAM REOUIREMENTS
The Subrecipient agrees to comply with the requirements of Title 24 of the Code of Federal
Regulations, Part 570 (the Housing and Urban Development regulations concerning Community
Development Block Grants). The Subrecipient also agrees to adhere to the terms of the City’s
CDBG Application and Subrecipient Agreement and with assurances and agreements made, by
the City, to the United States Department of Housing and Urban Development.
The Subrecipient shall comply with applicable Uniform Administrative Requirements as
described in Section 570.502 of the federal regulations for the CDBG Program; the federal
requirements are set forth, by reference, as a provision of this agreement.
The Subrecipient shall carry out all activities in compliance with all Federal laws and regulations
as described in Subpart K of the CDBG Program Regulations, such as affirmatively furthering
fair housing, labor standards (Davis Bacon Act), displacement, relocation and acquisition, and
employment and contracting opportunities, except that:
a. The Subrecipient will not assume the City’s environmental responsibilities as described
in Section 570.604; and
b. The Subrecipient will not assume the City’s responsibility for initiating the review
process required under the provisions of 24 Code of Federal Regulations Part 52.
The provisions of Subpart K, of the CDBG Program Regulations, are set forth, by reference, as a
condition of this agreement.
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8. CHANGES IN USE OF FUNDS
Changes in the use of CDBG funds must be approved by the City Council and the U.S.
Department of HUD. If the Subrecipient desires a change in the use of the CDBG funds
following approval of this agreement, a written request must be submitted to the City for formal
review by the City Council. No change in use of the CDBG funds will be permitted by the City
without prior formal approval by the City Council of the City of Carlsbad.
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CHANGES IN USE OF FACILITY
Subrecipient shall use the subject facility primarily for the regular and routine activities designed
for low income youths and teens as set forth in Major Redevelopment Permit 97-03. The facility
shall not be leased for any non-organization, aduh-oriented activity at any time. The facility is
not approved for any type of residential use and no person shall be allowed to live in the building
nor shall any residential eating or sleeping facilities be included within the facility. Any change
in use for the subject property shall require approval of the appropriate redevelopment permit by
the appropriate decision-making authority within the City of Carlsbad.
NONDISCRIMINATION CLAUSE
The Subrecipient shall comply with all state and federal laws regarding nondiscrimination in the
provision of services and the equal opportunity employment of personnel.
SUSPENSION AND TERMINATION OF AGREEMENT
In accordance with Section 24, Parts 85.43 and 85.44 of the Code of Federal Regulations, this
agreement may be suspended or terminated if the Subrecipient fails to comply with any term(s)
of the award and/or the award is terminated for convenience. Section 24, Parts 85.43 and 85.44
of the Code of Federal Regulations are set forth, by reference, as provisions of this agreement.
REPAYMENT OF GRANT FUNDS
Repayment of all of the CDBG funds paid to Subrecipient under this Agreement will be required
if at any time during the twenty (20) year term of this Agreement the property is sold or
transferred or the property is no longer used for its intended purposes as set forth within this
Agreement.
HOLD HARMLESS AGREEMENT
The Subrecipient shall comply with all federal regulations related to the use of CDBG funds by
religious organizations, if applicable to this agreement and the approved project outlined herein.
The City, its officers, and employees shall not be liable for any claims, liabilities, penalties,
fines, or any damage to goods, properties, or effects of any person whatsoever, nor for personal
injuries or death caused by, or claimed to have been caused by, or resulting from, any intentional
or negligent acts, errors or omission of Subrecipient or Subrecipient’s agents, employees, or
representatives in completion of the project outlined in this agreement.
Subrecipient agrees to defend, indemnify, and save free and harmless the City and its officers
and employees against any of the foregoing liabilities or claims of any kind and any cost/and
expense that is incurred by the City on account of any of the foregoing liabilities, including
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liabilities or claims by reason of alleged defects in any plans and specifications for the project or
facility.
ASSIGNMENT OF AGREEMENT
The Subrecipient shall not assign this agreement or any monies due thereunder without the prior
written consent of the City Council of the City of Carlsbad.
SUCCESSORS OR ASSIGNS
Subject to the provisions of this Subrecipient Agreement Paragraph 13, “Hold Harmless
Agreement,” all terms, conditions, and provisions hereof shall insure to and shall bind each of the
parties hereto, and each of their respective heirs, executors, administrators, successors, and
assigns.
INSURANCE
The Subrecipient shall obtain and maintain policies of general liability insurance and a combined
policy of worker’s compensation and employers liability insurance from an insurance company
authorized to do business in the State of California which meets the requirements of City Council
Resolution No. 91-403 in an insurable amount of not less than one million dollars ($1 ,OOO,OOO)
each, unless a lower amount is approved by the City Attorney or the City Manager.
This insurance shall be in force during the term of this agreement and shall not be canceled
without thirty (30) days prior written notice to the City sent by certified mail.
The City shall be named as an additional insured on these policies. The Subrecipient shall
furnish certificates of insurance to the City before commencement of work.
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I//
13214
Executed by Subrecipient this 104 1-\ day of Of1 I I ,200I -*
By:
- (sign here)
hk ~SlhU , f&-&f&l b
nam&itle)&rcu+~* QI W&-Z
3
ATTEST:
By: (sign here)
(print name/title}
(Proper notarial acknowledgment of execution by Subrecipient must be attached.
Chairman, president or vice-president and secretary, assistant secretary, CFO or
assistant treasurer must sign for corporations. Otherwise, the corporation must attach a
resolution certified by the secretary or assistant secretary under corporate seal
empowering the officer(s) signing to bind the corporation.)
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
BY:
8
13215
JOIN HANDS-SAVE A LIFE
3528 Madison Street Carlsbad, CA 92008 (760) 720-0540
Resolution of the Board of Directors
of Join Hands Save A Life
of
November 20,200O
We, the members of the Join Hands Save a Life Board of
Directors, do hereby authorize Frank Anthony Sorino to sign all
Community Development Block Grant agreements and related
documents with the City of Carlsbad. From this day forward, or
until the Board of Directors approves a new signee.
By unanamous vote by the Board of Directors of Join Hands
Save A Life on November 20, 2000.
Sincerely,
Salvador Velazquez, M.D.
Chairman of the Board of Directors of join Hands Save A Life.
13216
Description of attached document /kp?ww~14 Ae4Q,qfhJ\ ‘e a-) 04 Ccl&~ cwt&hh h&4-
State of California 1
County of San Diego )
On /$v 1 l I b 200 1 Before me, Gary S. Nessim, Notary Public, personally \ appeared FV a H (c: r-1 h 0
personally known to me (or proved to me on the basis of satisfactory evidence) ;o
be the person(s) whose name(s) is/ar+subscribed to the within instrument and
acknowledged to me that he/sh&ky executed the same in his/he&k& authorized
capacity(ies), and that by his/her&k&signature(s) on the instrument the person(s),
or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
I I.
13217
EXHIBIT “A”
CITY OF CARLSBAD
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
SCOPE OF WORK
Contract Term: July 1, 2000 to June 30,200l
Subrecipient Name:
Address:
JOIN HANDS - SAVE A LIFE
3528 Madison Street, Carlsbad, CA
Project Description: Construction of facility.
Project Goals & Objectives: (Please Attach Additional Sheets As Necessary.)
1. CDBG funds will be used to fund the following activities in compliance with the project description
outlined and in conformance with the Federal regulations for the CDBG program: (Please specify ij
CDBGfinds will be used toJicnd costs associated with sta&fing, rents, utilities, supplies, etc.)
Construction of 6175 square foot youth facility.
2. Project objectives performance measures:
a. Provide quarterly performance reports to the City of Carlsbad, Housing and Redevelopment
Department on the CDBG Quarterly Performance Report form as provided.
b. Maintain records, invoices, and relevant statistics supporting the quarterly reports.
c. Provide a final performance report, including an evaluation report of the program’s success in
meeting established goals, to the City of Carlsbad Housing and Redevelopment Department
within 15 days of termination of the contract date on the CDBG Annual Performance Report
form as provided.
d. Provide notification to the City of any audits or investigations including results, findings, and/or
liens.
13218
EXHIBIT “B”
ClTY OF CARLSBAD
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
BUDGET
Contract Term: July 1, 2000 to June 30,200l
Subrecipient Name:
Address:
Join Hands - Save a Life
3528 Madison Street, Carlsbad, CA
Project Description: Construction of youth facility.
Cost Breakdown:
See attached budget detail page.
10
Project: Join Hands - Save A Life Ceder
Carlsbad, CA
BUDGET OF PROBABLE COST Plan Dale: None
Architect: Purdy Architects & Planners
CSI DESCWPTKIN
CODES
01000 GENERAL CONDITIONS:
TOTAL
a7
UNIT
PRICE
UNIT SUB
TOTAL TOTAL
0100 1 Supervision
01005 Project Manager
01030 Job site labor
01080 Barricacles/Pmtection
01170 Temporary Fencing
01500 Jobsite Trailer - 8’ x 20
01510 Chemical Toilets
01520 Job site phone
01530 Temporary utilities
01535 Temporary power poles & boxes
01600 Tools 8 Equipment Rental
01800 Dumpster3
SUBTOTAL
01000 JOBSITE REQUIREMENTS:
01120 Special Inspetis 3 Testing
01130 Surveying
01850 Clean - Final up
SU STOTAL
11 $1,800.00 wk s 19,800.00
1 $3,960.00 Is $3,960.00
264 $14.00 hr $3.696.00
1 $2,500.00 Is $2.500.00
300 52.25 If $675.00
3 $245.00 mo $735.00
3 !?illO.W mo $330.00
3 S285.W mo Si55.00
3 $300.00 mo $9OO.oa
I $2,250.00 IS 52,250.OO
1 $1,500.00 Is $1.500.00
4 $540.00 ea $2.; 60.00
By ethers
I
6175
$1.975.00 ts
$0.11 sf
$1,375.00
$695.00
$39,361.00
92,670.OO
-02000 SITE W&K: - - - - -
02050 Demo for approaches
New approaches
SUBTOTAL
1 $1,250.00 ea 5: ?50.00
1 S2,450.00 Is $21i5c.O0
$3,700.00
Grading
02200 Rough gmdlng
Remove S recompact
02220 Fine grading
SUBTOTAL
10500 $0.55 sf $5,775&o
778 $2.75 yd %2,136.89
10500 SW.35 sf $3.675.00
02510 Sewer System
Sewer line - 4” ABS
4” dean out
Cleanout &connect Q property line
Test sewer laterals per Plumbing Gepartment
SUBTOTAL
$i1,588.89
1:o $15.00 If $2.100.00
3 $3OO.W aa $900.00
i $650.00 ea $650.00
1 $450.00 ea 3450.00
$4,1QO.Q0
_. _.
-19
Water Systems
02520 Oomestic water service
2’ RP backflow preventers
Test 2” water lateral per Plumbing Depanment
SUBTOTAL - - I 62480 LandsapIng Allowance
SUBTOTAL
Erosion Control
Termlte control
SUBTOTAL
02500 Paving
Parking area asphalt [3’ AC on 4” class II base]
Scarify f T 8 reco mpact to 95%
02640 Striping
Fire Lane red parnted curb
Cross hatcning
Signage
SUBTOTAL
02650 Slto Concrete
curb
4” sidewalk (broom finish) en@/ porch 5’ x 6’ & walk
SUBTOTAL -I--- -- 03000 BUlLDiNG CONCRETE
Concrete:
03300 Building slab 8 foundation
#I @ 12” 0.c.e.w.
SUBTOTAL
50
t
1
2605 $3.00 sf
1900
1900
60
55
220
2
70
350
6175 $5.65 sf
6175 $0.75 sf
$15.00 If
S1.200.00 ea
$450.00 ea
s4,500.00 Is
$556.00 Is
$1.35 sf
$0.45 sl
S2.00 il
$2.75 II
SO.65 sf
5150.00 ea
$10.20 If
s4.00 sf
-----
!31,200.00 t .
$450.00
$2,4m.O0
57,875.OO
57.aw.00
$4,50.00
$556.00
f5,Osa.OO -
$2.565.00
$855.00
s: 20.00
$151.25
$143.00
5300.00
$4x34.25
$714.00
$1,400.00
52.114.00
$34,888.75
$4,631.X
s39,520.00
- -- .--. 040% MASONRY
Masonry wail footing - 1' x 3’
Masonry wall 6’ high
SUBTOTAL
05000 METALS:
140
a40
-.--. .
$30.00 if $4,200.00
$13.00 sf 510.920.00
$ls,l2o.a0
_._
05100 Stn.ictural Steel roof framing by others
Columns by others
Handrelis by others
Mezzanine steel beams - one Q 29’ 6” by others
SUBTOTAL $0.00
--06000 WOOD: ..._.~~._._
05100 Rough Caqmtry:
Rywood roofing
Rough carpentry walls 8 mezzanine
Wood stain
SUBTOTAL
6565 $1.20 sf s7,878.00
1 $59,597.00 Is s59,597.00
NC $3500.00 ea $C.OO
$67,475.00
2
06400 Mllhvork
Kitchen
P-lam base cabinet
P-lam uppers
Restrooms I - 15 - counter top - 3 each 34Q.00 If $600.00
SUBTOTAL $600.00
-. 07000 THERMAL I MOISTURE PROTECTION: -
---
07200
07500
07600
Inaulatlon:
Walls- R-19
Roof R-30
SUBTOTAL
13125
by others
so.40 sf $5.25000
ts,250.00
Roofing
Panel roof - metal 24 9a galv. in standard colw
SUBTOTAL
by others
$0.00
Flashing/Sheet Metal
Access panels - rated @ Attics
SUBTOTAL
2 $175.00 ea $350.00
$350.00
I --- - 08000 DOORS&VI N DOW3
06250
08330
08800
Ooors/FmmedHardwar:
Exterior 3’ doors
Interior 3’ d0ars
Exterior pairs
Interior pairs
Trip charge
StOCkii
SUBTOTAL
Door Laborllnstallation:
Per plans
SUBTOTAL
Roll-Up Doors.
S X 10’ Roll up (Provienj
lo X 10 Roll up (Provien)
SUBTOTAL
Glazing:
Ex&icx windows
SUBTOTAL
1 $700.00 8a
5 $475.co ea
4 5875.00 ea
1 $725.00 ea
II) 545.00 8-3
10 $8.011 8a
1 $2,744.00 Is
1
274
61,650.OO ea
$24.00 sf
5700.00
$2.37500
s3.500.00
$725.00
9450.00
580.00
S7,830.00
$2,744.00
%2,744.00
d1.653 00
51,6!50.00
$6.576.00
$6.576.00
I 09000 (FINISHES: .-
‘LatWPlsstec
hver wood studs
Lathkcratch shower walls
SUBTOTAL
3460 $8.00 sf $27,640.00 .
307 $4.00 sf % I ,.a3.00
$29,068.00
3
09300
I - . .
e-
DrywalllFramlng:
D.W. hang, tape & finish
Drywall stocking
SUBTOTAL
Ceramic tile (Allowance):
Resbrxm countertops
Shower stalls
SUBTOTAL
Floor Covering: Allowance
offlce
Carpet- Albwance
Base- Roppe 4’
Restrooms
Sheet vinyl - Armstrong SeagatelSuffieLd 471
Self coving 6” 170
Lobby, M&J-Purpose, ExercJse & Kitchen
VCT- Armstrong Excelon
Base- Roppe 4
BU BTOTAL
Point:
Walls & ceilings
Doors-Stafn grade
Roll-up door
SUBTOTAL
loo00 ISPECIALTIES:
10500
I
Lookers - metal by F&public
SUBTOTAL
10600 Toilet PartiUons: (P- Lamlnate)
Handicap stall
Regular stall
Urinal screens
10800 Toll& Accessories:
Grab bars -(Pair)
Paper towel holders
Paper towel recessed model w/trash
Toilet paper holders
Napkin disposal
Soap dispenser - Recessed
Seat cover dispenser -
Handicap sign at bethroom
10810 Mirror-framed 24” x 36”
10620 FRP panels
SUBTOTAL
..-.
NIC
2 $950.00 ea
1 $790.00 ea
1 $150.00 ea
3 %118.00 pr
1 $67.00 ea
2 $406.00 ea
4 $35.00 t3a 4 $30.00 ea
5 $100.00 ea
4 $55.00 ea
3 SE00 ea
5 $105.00 ea
680 $2.50 sf
$1.900.00
$790.00
$150.00
$354.00
$67.00
$812.00
t14O.00
$30.00
$500.00
$220.00
$105.00
$525.00
$1,700.00
I------
-.-.._ -
_. _. 4
32206 $1.25 sf
1 $450.00 Is
24 $8.00 sf
307 $8.00 sf
NC
NIC
$2.15 sf
$5.65 If
NIC
NC
32206 so.39 sf
14 $90.00 ea
2 5100.00 ea
$40,256.88
$450.00
f 192.00
$2.456,00
$2.648.00
$883.65
$960.50
$1.844.15
$12.56034
$1,260.00
s200.00
f14020.34
$0.00
$?,2Q3.00
11000 EQUIPMENT:
11400 Appliances: Allowance
Refrigerator
Microwave
Dishwasher
SUBTOTAL
---- 12000 FURNISHINGS:
NIC $S50.00 ea SO.00
NC s250.00 ea SO.00 13223
NC l $600.00 ea SO.00
SO.00
--- --
12500 Window Coverings:
%OO MECHANIC&:
NIC
-.
15400 Plumbing:
Per the following scope: 1 sz1,449.00 Is $21,449.00
4 - Tank type ADA flush toilets with seats
2 - Wall hung urinal3 with flush valves
5 - Self rimming sinks with self dosing faucet 8 gnd drains
2 - Orinking fountains
3 - Shower drains 8 ADA shower valves
1 - 75 gallon gas water heater
2 - Fforx drains for restrooms
1 - F!cor drain for Kitchen
ABS C&W on first floor
site work
SUBTOTAL
1 $36,566.00 Is $36.566.00
s58.017.00
15500 Fire Protection: NIC
15560 Firs Extlngulshers
Fire Extinguishers with cabinet
SUBTOTAL
3 $150.00 ea s450.00
S450.00
1 %31.361.00 Is 531,361.OO
15600 HeatInglAIr Condttioning:
Per the following scope:
3 - 5 ton & 1 - 3 ton split system tap heat pumps
Outslde air duct
Refrigerant lines
4 - Programmable thermostats
Exposed ductwork
Supply air diffusers
Return air grills
1 - Ceiling mount exhaust ian
1 - Roof fop exhaust fan
condensate drains
Start up 8 test
T-24 Design build & permit
!W BTOTAL b31,361.00
Bathroom G.F.I.C.
Separate circuit for Refer.
Separate &cult for Telephone
Separate circuit Water Heater - 3OA
Sepamte circuit for Microwave
_-
36 $45.00 ea f 1,620.OO
10 $75.00 ea $750.00
1 575.00 aa $75.00
1 375.00 ea 575.a
1 $200.00 ea $200.00
1 $125.00 ea s 125.00
23
:!~~
_.-. -- - “Sbigle pole 12oLZ77 Vdt Switch 18 945.00 ea $810.00
Type A tighting 12 $560.00 ea $6,720.00 2 Type B Lighting 36 $190.00 ea $7,220.00 . Type C Lighting 3 $165.00 ea 5495.00 13224
‘TLpe 0 Lighting 3 si58.00 ea $474.00 w c
Adder far Battery Back UQ 1 $175.00 ea d 175.00
Type E Lighting 3 $125.00 ea $375.00 -. - - . --. : Type F lighting 2 $85.00 ea $ I7O.cu
Type G Lighting 5 $165.00 ea $825.00
Telephone/Data Ring 8 String 4 fi25.00 ea 6 100.00 . * Connect Only Exhaust Fan 2 $35.00 ea $70.00
Thermostat Ring and Sting 1 $25.00 ea $25.00
Title 24 Load CaWSingle lines w/drawings 6175 $0.25 si $1,543.75
400 Amp 30 Circuit 120 Volt panel 1 3475.00 ea $475.00
&it sysiem heat pump 4 $350.00 ea t1,400.00
Eiectrical setvice allowance 1 !?20,000.00 allow %!0,000.00
Telephune backboards 1 $80.00 ea $80.00
SUBTOTAL s43,802.73
16700 DatalCommunication Systems N.I.C.
165Ofl Life Safety system N.1.C
16720 security Sydem N.i.C.
01015 Contingency 3.0% $13.777.39
SUBTOTAL Sl3,M.90
SUBTOTAL $473,043.21 $471.043.21
Ii Prevailing Wage: 30.00% $141,912.96 $614,956.17
01025 Profit & Overhead @ 796 $43,046.93 $658,003.10
01140 Bond Premium NIC
01145 Insurance @l G/o $6,580.00 $664,583.10
TOTAL ESTIMATE $66+,583.10 $1664.,>83 l 10 ._= - .---.. ~.. ---__ --__- .- __ =
Steel Building and Roof Erection Fees
TOTAL
$70,879.00
$39,500.00
$5,037.86 $780.000.00
ADDITIONAL AMOUNT EXPENDED TO DATE:
Architect, Engineering, Surveying $47,894,88 In-Rind Services $85,929,00 Donations (Material) $9.625.00
TOTLXG $143,449.88 ___l_---___-l____l-------------------- ---==-E=========--==--=----==-~-----== ____~-----------_I---~~------~~~~~~
_. _.-. 6
EXHIBIT 4
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk’s Off ice
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad CA 92008
(Space above for Recorder’s Use)
NOTE TO BORROWER:
This Note is not assumable.
PROMISSORY NOTE
Secured by a Deed of Trust
$80,000 Date: June 25, 2001
Carfsbad, California
Lots 204-081-08.204-081-09 and 204-081-l 0 in Villaqe Redevelopment Area of the Citv
of Carlsbad (the “property”).
FOR VALUE RECEIVED, JOIN HANDS-SAVE A LIFE, a California nonprofit
corporation (“Borrower”), promises to pay to the City of Carfsbad, a munfcipat
corporation (“City’), the principal sum of Eighty Thousand Dollars ($80,000), or so
much thereof as is advanced to Borrower by the City pursuant to the Agreement
Between the City of Carlsbad and Join Hands-Save a Life for Federal Community
Development Block Grant Funds.
1. Loan Ameement. This City Promissory Note is made pursuant to a
Community Development Block Grant Subrecipient Agreement dated June 25, 2001 (the “Agreement”) by and between the Borrower and
the City.
2. Use of Funds. Borrower is constructing a new youth facility on
properties identified as lots 204-081-08, 204-081-09, and 204-081-l 0 within the
Village Redevelopment Area of the City of Carlsbad. This Note evidences the
loan made by the City to assist Borrower in constructing the subject facility for
operation of youth programs to benefit low and moderate income persons
consistent with the requirements of permits governing its use.
3. Securitv. This Note is secured through concurrent execution of a
Deed of Trust and Security Agreement, herein after referred to as Deed of Trust,
Join Hands Promissory Note 4/2/200 1
and recordation of said Deed of Trust in the Office of the San Diego County
Recorder.
4. Transfer or Assumption of Note. Borrower acknowledges that this
Note is given in connection with the construction and operation of a new facility
as part of a program of the City to assist in providing programs and activities for
low and moderate income youths and teens. Consequently, this Note is not
assumable by transferees of the Property and is due and payable upon the date
the property is sold or transferred, or upon failure of Subrecipient to operate the
facility for low and moderate income youths and teens consistent with the
requirements of the permits governing the use of the facility and the
Subrecipient’s application to the City requesting financial assistance.
5. Intere@. There will be no interest charged on the Loan.
6. Term. The term of this City Promissory Note (the “Term”) shall
commence?%% date this City Note is executed and shall expire twenty (20)
years from the date the final Certificate of Occupancy is issued for the youth
facility to be, constructed by the Join Hands-Save a Life organization, or the date
any portion of the property and/or improvements are sold or transferred, or
failure of the Borrower to operate a youth facility on the proper&y consi;stsnt with
the requirements of permits governing the use of the facility and Borrower’s
application to the City requesting financial assistance, whichever occurs first.
7. Amount and Time of Payments. Unless the loan has been fo@ven
according to Paragraph 9 below, the principal amount of this Nut@ shall be due
and payable in full upon the first of the following to occur after the date of this
Note: (I) the date of the first sale or transfer of the Property, or (II) laiture of the
Borrower to operate a youth facility on the Property consistent with the
requirements of permits governing the use of the facility and Borrower’s
application to the City requesting financial assistance.
8. Deferral. Provided that the Borrower complies with the terms of the
Deed of Trust and the Agreement between the City and the Borrower for Federal
Community Development Block Grant Funds, the amount due and payable under
this Note shall be deferred until expiration of the agreement, or upon Borrower’s
sale of the Property and/or retated improvements, or upon failure of Subrecipient
to operate a facility for low and moderate income youths and teens consistent
with the requirements of the permits governing the use of the facility and
Subrecipient’s application to the City for financial assistance from the CDBG
program, whichever occurs first.
9. Fornivable. The loan shall be forgivable upon expiration of the twenty
year term of the loan if the facility has been maintained and operated as a youth
facility consistent with the requirements of the permits governing the use of the
facility for the full term of the loan.
10. Acceleration. Upon the occurrence of a default under the
Subrecipient Agreement between the City and Borrower for Community
Development Block Grant Funds and Deed of Trust, and expiration of all
Join Hands Promissory Note 2 4/2/200 1
37
applicable notice and cure periods (an “Event of Default”), the City shall have the
right to accelerate the Due Date of this Note and declare all of the unpaid
principal immediately due and payable. Any failure by the City to pursue its legal
and equitable remedies upon an Event of Default shall not constitute a waiver of
the City’s right to declare an Event of Default and exercise all of its rights under
this City Note, the Subrecipient Agreement, and the Deed of Trust. Nor shall
acceptance by the City of any payment provided for herein constitute a waiver of
the City’s right to require prompt payment of any remaining principal.
11. No Offset. Borrower hereby waives any rights of offset it now has or
may hereafter have against the City, its successors and assigns.
12. Waiver: wrn I FM4 s. Borrower ati any endorsers or guarantors
of this City Note, for thei~~elves, their heirs, leg&l representatives, successors
and assigns, respe@vely, sever&y waive diligertce, pre@ntWt, protest, and
demand, and not&e of protest, di%honor and n&payment of this City Note, and
expressly waive any rights to be ref~ased by re@on of any exten&3n of time or
change in terms ti payment, or change, alteration or release of any @ecurity
given for the payments hereof, and expr&&iy waive the right ta plead bny and all
statutes of limitations as a defense to any demand on this City Note or
agreement to pay the same, and jointly and severally agreO to pay afi costs of
collection when incurred, including reasonable attorneys’ fees. If an a& is
instituted on this City Note, the undersigned promises to pay, Ifi addit&? to the
costs and disbursements allowed by law, such sum as a court rr~y adj
reasonable as attorneys’ fees in such action.
13. Manner and Place of Pament. All payments of princip&l due under
this City Note shall be payable in lawful money of the United Stat@s of America at
the office of the City of Carfsbad, Housing and Redevelopment Dwrtment,
2965 Ro&$eveit Drive, Suite B, Carlsbad, California 92008, or W& other
address ae the City may designate in writing.
f4. No W&g$w the City. No waiver of any breach, default, or failure of
condition under the terms of this Note shall be implied from any failure of the City
to take action with respect to such breach, default or failure or from any previous
waiver of any sim~!ar or unrelated brsach, default or failure.
15. Givinn of ~a~~& Except for any noWe required under applicable
law to be given in another manner, any notice to Borrower provided for in this
Note shall be sent certified mail, return receipt requested or express delivery
service with a delivery receipt, or personally delivered with a delivery receipt obtained, and shall be deemed to be effective as of the date shown on the
delivery receipt as the date of delivery, the date delivery was refused, or the date
the notice was returned as undeliverable. Notices shall be directed as follows:
Borrower:
Attn: Executive Director
Join Hands-Save a Life
3528 Madison Street
Carlsbad, Ca. 92008
Join Hands Promissory Note 4/2/200 1
Citv of Carlsbad:
Attn: Housing and Redevelopment Director
Housing and Redevelopment Department
2965 Roosevelt Street, Suite B
Carlsbad, Ca. 92008
The parties may subsequently change addresses by providing written notice of
the change in address to the other parties in accordance with this Section.
16. Joint and Several Obligations. This Note is the joint and several obligation
of all makers, sureties, guarantors and endorsers, and shall be binding upon them and
their successors and assigns.
17. Controlling Law. This Note shall be construed in accordance with and be
governed by the laws of the State of California.
18. Assignment by the City, The City may assign its right to reoefve the
proceeds under this Note to any person and upon notice to Borrower by the City all
payments shall be made to the assignee.
19. fnvalid Provisions. If any one or more of the provisions contained in this
Note shall for any reason by held to be invalid, illegal or unenforceabie in any respect,
then such provision or provisions shall be deemed severable from the remaining
provisions contained in this Note, and this Note shall be construed as if such invalid,
illegal or unenforceable provision had never been contained in thls Note.
20. Entfre A+pement. This Note (along with the Deed of Trust) sete for31 the
entire understanding and agreement of the City and Borrower and any amendment,
alteration or interpretation of this Note must be in writing signed by both the Ctty and
Borrower.
IN WITNESS WHEREOF the parties hereto have caused this Promissory Note to
be executed as of the day and year first written above.
JOIN HANDS - SAVE A LIFE,
a California Non-Profit Corporation
By: 7L + ,t
Frank Sorino, Executive Director
Join Hands Promissory Note 4/2/200 1
State of California
5,h t -3 r-r-y,, County of
On /&pit /O 300 id before me, 1
&q 5. .tirrsl;l
IDATE) Fiml k” Gcmkt‘j
(NOTARY)
personally appeared
SIGNERIS)
0 personally known to me - OR -
OTARY t’“BLlCCALlFORNlA B COMM. t 1237167
Y SAN t.liEGoCoU~ q
COMH. EXP. OCT. 9,
m proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and
acknowledged to me that he/&&hey executed
the same in his/h&&-&r authorized
capacity(ies), and that by his/m
signatures(s) on the instrument the person(s),
or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
NOTARY’S SIGNATURE
OPTIONAL INFORMATION
The information below is not required by law. However, it could prevent fraudulent attachment of this acknowl-
edgement to an unauthorized document.
CAPACITYCLAIMED BYSICNER (PRINCIPAL)
Cl INDIVIDUAL
P CORPORATE OFFICER
-~t&y\+a~ ~pCcJi-tt+drv-
TITLE(S)
0 PARTNER(S)
cl ATTORNEY-IN-FACT
0 TRUSTEE(S)
[7 GUARDIAN/CONSERVATOR
0 OTHER:
SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)
DESCRIPTIONOFATTACHEDDOCUMENT
p~o/vl~u~ hsc3k
TITLE OR TYPE OF DOCUMENT
4 NUMBER OF PAGES
“i/&J 1
DATE OF DOCUMENT
OTHER E RIGHT THUMBPRINT E -iT OF L--- 2 x SIGNER f B
F
APA 5199 VALLEY-SIERRA, 800-362-3369
3 0
EXHIBIT 5
RECORDING REQUESTED BY:
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk’s Office
Ii
Attn: City Clerk
\ 1200 Carlsbad Village Drive
. DOC # 2001-0436158
JUN 27, 2CK31 2:48 FM
ImCIAL RECORDS !SH DIEGO COUNTY REmKR’S OFFICE
13226 GREGORY ;.$ITHs ~~~~
UAYvi 2’
v Carlsbad CA 92008
&J (Space above for Recorder’s Use)
PJF NOTE TO BORROWER:
This Deed of Trust Contains Provisions Prohibiting Assumptions
DEED OF TRUST AND SECURITY AGREEMENT
THIS DEED OF TRUST AND SECURITY AGREEMENT (“Security Instrument”) is made
on the 25th day of June ,2001, among Join Hands - Save a Life, a
non-profit corporation, (“Borrower”) as trustor, and Lawyers Title Company, a California
corporation (“Trustee”), and the City of Carlsbad, a municipal corporation (“the City”), as
beneficiary.
The Borrower, in consideration of the promises herein recited and the trust herein created,
irrevocably grants, transfers, conveys and assigns to the Trustee, in trust, with power of sale, the
property located in the City of Carlsbad, State of California, identified as lots 204-081-08,204-
081-09, and 204-081-10 in the Village Redevelopment Area of the City of Carlsbad and is further
described in the attached Exhibit “A” (the “Property”).
TOGETHER WITH atl easements, appurtenances, and fixtures now or hereafter a part of
the property, all of which, including replacements and additions thereto, shall be deemed to be
and remain a part of the property covered by this Security Instrument; and,
TO SECURE to the City the repayment of the sums evidenced by a promissory note
executed by the Borrower to the City dated Jm@ 25 ,2001, the principal
sum of eighty thousand dollars ($80,000) (the “Note”).
TO SECURE to the City the payment of all other sums, with interest thereon, advanced in
accordance herewith to protect this Security Instrument; and the performance of the covenants
and agreements of Borrower herein contained; and,
TO SECURE the performance of any obligations of Borrower in any other agreements with
respect to the financing of the Property, the failure of which would adversely affect Beneficiary,
whether or not Beneficiary is a party to such agreements.
13227
BORROWER AND THE CITY COVENANT AND AGREE AS FOLLOWS:
1. Borrower’s Estate. That Borrower is lawfully seized of the estate hereby
conveyed and has the right to grant and convey the Property, that other than this Security
Instrument, the Property is unencumbered. Borrower warrants and will defend generally the title
to the Property against all claims and demands, subject to any declarations, easements or
restrictions listed in a schedule of exceptions to coverage in any title insurance policy insuring the
City’s interest in the Property.
2. Payment of Principal and Prepayment. Borrower shall promptly pay when due
the principal of the debt evidenced by the Note. The Note contains the following provisions
concerning payment of the loan under certain conditions:
No m of w. Borrower acknowledges that the Note is given in
connection with the construction of a youth facility as part of a program of the City to assist with
the provision of recreational opportunities for youth from low and moderate income families.
Consequently, the Note is not assumable by transferees of the Property, but is due and payable in
full upon expiration of the term of the Note, or on the date the Property is sold or transferred,
whichever occurs first.
3. Charges; Ltens. Borrower shall pay all taxes, assessments, charges, fines and
impositions attributable to the Property which may attain priority over this Security Instrument.
Borrower shall pay these obligations on time directly to the person owed payment. Borrower shall
promptly furnish to the City all notices of amounts to be paid under this Section. If Borrower
makes these payments directly, Borrower shall promptly furnish to the City receipts evidencing the
payments.
Borrower shall promptly discharge any other lien which shall have attained prior@ over this
Security Instrument unless Borrower: (1) agrees in writing to the payment of the obligation
secured by the lien in a manner acceptable to the City; (2) contests in good faith the lien by, or
defends against enforcement of the lien in, legal proceedings which in the Ciis opinion operate
to prevent the enforcement of the lien; or (3) secures from the holder of the lien an agreement
satisfactory to the City subordinating the lien to this Security Instrument. If the City determines
that any part of the Property is subject to a lien which may attain priority over this Security
Instrument, the City may give Borrower a notice identifying the lien. Borrower shall satisfy such
lien or take one or more of the actions set forth above within 10 days of the giving of notice.
4. Hazard or Property Insurance. Borrower shall keep the improvements now
existing or hereafter erected on the Property insured against loss by fire, hazards included within
the term “extended coverage” and any other hazards, including floods or flooding, for which the
City requires insurance. This insurance shall be maintained in an amount equal to the
replacement cost of the Property and for the periods that the City requires. The insurance carrier
providing the insurance shall be licensed to do business in the State of California and be chosen
by Borrower subject to the City’s approval which shall not be unreasonably withheld. If Borrower
fails to maintain coverage described above, the City may, at the City’s option, obtain coverage to
protect the City’s rights in the Property in accordance with Section 6.
All insurance policies and renewals shall be acceptable to the City and shall include a
standard mortgagee clause with standard lender’s endorsement in favor of the Deed of Trust and
the City as their interest may appear and in a form acceptable to the City. The City shall have the
-2-
13228
right to hold, or cause its designated agent to hold, the policies and renewals thereof, and
Borrower shall promptly furnish to the City, or its designated agent, the original insurance policies
or certificates of insurance, all renewal notices, and receipts of paid premiums. In the event of
loss, Borrower shall give prompt notice to the insurance carrier and the City or its designated
agent. The City or its designated agent, may make proof of loss if not made promptly by the
Borrower. The City shall receive thirty days advance notice of cancellation of any insurance
policies required under this Section.
Unless the City and Borrower otherwise agree in writing, insurance proceeds shall be
applied to restoration or repair of the Property damaged, provided such restoration or repair is
economically feasible and the City’s security is not thereby impaired. If the restoration or repair is
not economically feasible or the City’s security of this Deed of Trust would be impaired, the
insurance proceeds shall be applied to repay the sums secured by this Security Instrument,
whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or
does not answer within 30 days a notice from the City or its designated agent that the insurance
carrier has offered to settle a claim, then the City or its designated agent may collect the
insurance proceeds. City may use the proceeds to repair or restore the Property or to pay sums
secured by this Security Instrument, whether or not then due. The 30-day period will begin when
the notice is given.
5. Odcupancy, Preservation, Maintenance and Protection of the
Property. Borrower shall obtain all necessary permits required to occupy, establish, and use the
Property as a youth facility and maintain the property consistent with the requirements of such
permits. Borrower shall not destroy, damage or impair the Property, allow the Property to
deteriorate, or commit waste on the Property. Borrower shall be in breach if any forfeiture action
or proceeding, whether civil or criminal, is begun that in the City’s good faith judgment could result
in forfeiture of the Property or otherwise materially impair the lien created by this Security
Instrument or the City’s security interest. Borrower may cure such a breach and reinstate, as
provided in Section 18, by causing the action or proceeding to be dismissed with a ruling that, in
the City’s good faith determination, precludes forfeiture of the Borrowers interest in the Property
or other material impairment of the lien created by this Security Instrument or the City’s security
interest.
6. Protection of the City’s Rights in the Property. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument or if any action or proceeding is
commenced which may materially affect the City’s rights in the Property, including but limited to
breach under any other deed of trust encumbering the property, eminent domain, insolvency,
code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then the
City, at the City’s option, upon notice to the Borrower, may make appearances, disburse such
sums and take such actions at it deems necessary to protect the value of the Property and the
City’s rights in the Property. The City’s actions may include paying any sums secured by a lien
which has priority over this Security Instrument, appearing in court, paying reasonable attorneys’
fees and entering on the Property to make repairs.
Any amounts disbursed by the City pursuant to this Section shall become additional debt
of Borrower secured by this Security Instrument. Unless Borrower and the City agree to other
terms of payment, these amounts shall bear interest from the date of disbursement at the lesser
of ten percent (10%) or the highest rate permissible under applicable law and shall be payable,
with interest, upon notice from the City to Borrower requesting payment. Nothing contained in this
Section will require the City to incur any expense or take any action hereunder.
- 3 -
13229
7. Inspection. The City or its agent may make reasonable entries upon and
inspections of the Property. the City shall give Borrower notice at the time of or prior to an
inspection specifying reasonable cause for the inspection.
8. Forbearance By the City Not a Waiver. Any forbearance by the City in
exercising any right or remedy will not be a waiver of the exercise of any such right or remedy.
9. Remedies Cumulative. All remedies provided in this Security Instrument are
distinct and cumulative to any other right or remedy under this Security Instrument or any other
document, or afforded by law or equity, and may be exercised concurrently, independently, or
successfully.
10. Successors and Assigns Bound; Joint and Several Liability. The covenants
and agreements of this Security Instrument shall bind and benefit the respective successors and
assigns of the City and Borrower, subject to the provisions of this Security Instrument. Borrower’s
covenants and agreements shall be joint and several.
11. Notices. Except for any notice required under applicable taw to be given in
another manner, any notice to Borrower provided for in this Security Instrument shall be sent
certified mail, return receipt requested or express delivery service with a delivery receipt, or
personally delivered with a delivery receipt obtained, and shall be deemed to be effective as of the
date shown of the delivery receipt as the date of delivery, the date delivery was refused, or the
date the notice was returned as undeliverable.
Notices shall be directed as follows:
Borrower:
Join Hands - Save a Life
3598 Madison Street
Carlsbad, CA 92008
Attn: President
Housing and Redevelopment Department
2965 Roosevelt Street Suite B
Carlsbad CA 92008-2389
Attn: Housing and Redevelopment Director
The parties may subsequently change addresses by providing written notice of the change
in address to the other party in accordance with this Section.
12. Governing Law. This Security Instrument shall be construed in accordance with
and be governed by the laws of the State of California. In the event that any provision or clause of
this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect
other provisions of this Security Instrument or the Note which can be given effect without the
conflicting provision. To this end the provisions of this Security Instrument and the Note are
declared to be severable.
13. Severability. In the event that any provision or clause contained in this Security
Instrument or the Note shall for any reason be held to be invalid, illegal or unenforceable in any
respect, then such provision or clause shall be deemed severable from the remaining provision,
-4-
?/,
and this Security Instrument and the Note shall be construed as if such invalid, illegal, be
severable.
14. Captions. The captions and headings in this Security Instrument are for
convenience only and are not to be used to interpret or define the provisions hereof.
15. Default; Remedies. Upon the Borrower’s breach on any covenant or agreement
of the Borrower in this Security Instrument, including, but not limited to, the covenants to pay,
when due, any sums secured by this deed of Trust, the City, prior to acceleration shall give notice
to Borrower specifying: (1) the breach; (2) if the breach is curable; (3) the action required to cure
the breach; (4) a date, not less than 30 days from the date the notice is given to Borrower by
which the breach must be cured; and (5) if the breach is curable, failure to cure the breach on or
before the date specified in the notice may result in acceleration of the sums secured by this
Security Instrument and sale of the Property. The notice shall further inform Borrower of the right
to reinstate after acceleration and the right to bring a court action to assert the non-existence of a
default or any other defense of Borrower to acceleration and sale. If the breach is not cured by
the Borrower on or before the date specified in the notice, then the City, at its option may: (a)
require immediate payment in full of all sums secured by this Security Instrument without further
demand and may invoke the power of sale and any other remedies permitted by California law;
(b) either in person or by agent, with or without bringing any action or proceeding, or by a receiver
appointed by a court, and without regard to the adequacy of its security, enter upon the Property,
in its own name or in the name of the Trustee, and do any acts which it deems necessary or
desirable to preserve the value or marketability of the Property, or part thereof or interest therein,
increase the income therefrom or protect the security thereof. The entering upon and taking
possession of the Property shall not cure or waive any breach hereunder or invalidate any act
done in response to such breach and notwithstanding the continuance in possession of the
Property, the City shall be entitled to exercise every right provided for in this Security Instrument or
by law upon occurrence of any uncured breach, including the right to exercise the power of sale;
(c) commence an action to foreclose this Security Instrument as a mortgage, appoint a receiver,
or specifically enforce any of the covenants hereof; (d) deliver to the Trustee a written
declaration of default and demand for sale, pursuant to the provisions for notice of sale found at
California Civil Code Sections 2924, et., as amended from time to time; or (e) exercise all
other rights and remedies provided herein, in the instruments by which the Borrower acquires title
to any Property, or in any other document or agreement now or hereafter evidencing, creating or
securing all or any portion of the obligations secured hereby, or provided by law.
The City shall be entitled to collect all reasonable costs and expenses incurred in pursuing
the remedies provided in this Section, including, but not limited to, reasonable attorney’s fees.
16. Acceleration. Upon the occurrence of a default under the Note, or this Security
Instrument, the City shall have the right to declare the full amount of the principal under the Note
immediately due and payable. Any failure by the City to pursue its legal and equitable remedies
upon default shall not constitute a waiver of the City’s right to declare a default and exercise all of
its rights under the Note and this Security Instrument. Nor shall acceptance by the City of any
payment provided for in the Note constitute a waiver of the City’s right to require prompt payment
of any remaining principal and shared appreciation owed.
17. Borrower’s Right to Reinstate. Notwithstanding the City’s acceleration of the
sums secured by this Security Instrument, Borrower shall have the right to have any proceedings
begun by the City to enforce this Security Instrument discontinued at any time prior to the earlier
of: (1) 5 days before sale of the Property pursuant to any power of sale contained in this Security
-5-
?7
13231
Instrument; or (2) entry of a judgment enforcing this Security Instrument if Borrower: (a) pays the
City all sums which then would be due under this Security lnstrument and the Note as if no
acceleration had occurred; (b) cures any breach of any other covenants or agreements of the
Borrower contained in this Security Instrument; (c) pays all reasonable expenses incurred in
enforcing the covenants and agreements of this Security Instrument, including, but not limited to,
reasonable attorneys’ fees; and (d) takes such action as the City may reasonably require to
assure that the lien of this Security Instrument, the City’s rights in the Property and Borrower’s
obligation to pay the sums secured by this Security Instrument shall continue unimpaired. Upon
such payment and cure by Borrower, this Security Instrument and the obligations secured hereby
shall remain in full force and in effect as if no acceleration had occurred.
18. Reconveyance. Upon payment of all sums secured by this Security Instrument,
the City will surrender this Security Instrument and the Note to the Trustee. The Trustee will
reconvey the Property without warranty and without charge to the person or
persons legally entitled thereto. Such person or persons will pay all costs of recordation, if any.
19. Substitute Trustee. The City, at its option, may from time to time remove Trustee
and appoint a successor trustee to any Trustee appointed hereunder. The successor trustee shall
succeed to all the title, power and duties conferred upon Trustee herein and by applicable law.
20. Hazardous Substances. Borrower shall not cause or permit the presence, use,
disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall
not do, nor allow anyone else to do, anything affecting the Property that is in violation of any
Environmental Law. The preceding two sentences shall not apply to the presence, use, or
storage on the Property of small quantities of Hazardous Substances that are generally
recognized to be appropriate to normal residential uses and to maintenance of the Property.
Borrower shafl promptly give the City written notice of any investigation, claim, demand,
lawsuit or other action by any governmental or regulatory agency or private party involving the
Property and any Hazardous Substance or Environmental Law of which Borrower has actual
knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any
removal or other remediation of any Hazardous Substance affecting the Property is necessary,
Borrower shall promptly take all necessary remedial actions in accordance with Environmental
Law. Prior to taking any such remedial action, however, Borrower shall notify the City that such
remedial action is necessary and shall obtain the City’s prior written consent for such remedial
action.
- 6 -
13232
As used in this Section, “Hazardous Substances” are those substances defined as toxic or
hazardous substances by Environmental Law and the following substances: gasoline, kerosene,
other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents,
materials containing asbestos or formaldehyde, and radioactive materials. As used in this
Section, “Environmental Law” means federal laws and laws of the jurisdiction where the Property
is located that relate to health, safety or environmental protection.
IN WITNESS WHEREOF the parties hereto have caused this agreement to be executed
as of the day and year first written above.
JOIN HANDS-SAVE A LIFE, a non-profit corporation,
/ FRANK SORINO, Executive Director
ATTEST: /7
Ld’RF(AndE M. WOOD, C Clerk
APPROVED AS TO
RbNAfi R. BALL, City A
.
- 7 -
13233
Description of attached document +&TJ 6~ T,-s+ arzx Sew,& &wwvq
State of California >
County of San Diego )
On A+ \ IO, 300 t Before me, Gary S. Nessim, Notary Public, personally
appeared Ffi k4C 4~7 rPl4~
personally known to me (or proved to me on the basis of satisfactory evidence) ;o
be the person(s) whose name(s) is/mubscribed to the within instrument and
acknowledged to me that he/s- executed the same in his/he&heir authorized
capacity(ies), and that by his/he&ki-rsignature(s) on the instrument the person(s),
or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
EXHIBIT A
Legal Property Description
The land is situated in the
State of California
County of San Diego
LOTS 27,28, AND 29 IN BLOCK 31 OF THE TOWNE OF CARLSBAD, IN THE CITY OF
CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP
THEREOF 535, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY, MAY 2,188O.
13234
- 8 -
EXHIBIT 6
May 1,2001
Frank Boensch
Management Analyst
Housing & Redevelopment Department
City of Carlsbad
2965 Roosevelt Street, Suite B
Carlsbad, CA 920082389
R&3: Reauest for Extension of Time
Dear Mr. Boensch:
I am writing this letter to request an extension for use of the CDBG
funding for the Join Hands project on Roosevelt Street. We previously
received an extension for some of the CDBG funding to allow completion
of the project by June 30, 2001. We have made substantial progress
toward the completion of the project by that date. However, we have
recently found out from you that HUD is unwilling to allow us to proceed
with our original plan. Therefore, we will need an extension of time to
June 30,2002.
We have met the following milestones regarding the oompletion of the
project:
1. Retained an engineering firm and processed a boundary adjustment
through the City of Carlsbad to convert the three small lots
purchased into one large buildable lot.
2. Retained an architect, engineers, and others to develop a complete
site plan. Soils engineering work has been completed, architectural
plans have been submitted to the City and reviewed by Esgil
Corporation and City departments and approved for purposes of
pulling a building permit.
3. Project plans were issued to bidders for the project. Bids were
opened and discussions held with bidders regarding phasing the
project so that it could be initiated forthwith.
3
J*
Frank Boensch 4 I May 1.2001
Page Two
4. Bids were solicited for the steel roof and framework of the building
and a bidder was selected from the bids received.
Based upon the bids received, JHSAL was ready to move forward with its
project. We anticipated having a completed exterior building with parking
lot and landscaping in place by the deadline of June 30, 2001.
As previously submitted to the City, JHSAL has obtained over $100,000.00
of in-kind services to this project to date. Utilizing that strategy, we
anticipated completing the interior of the building with volunteer contrac-
tors who are lined up to provide the various resources needed to complete
the building.
Unfortunately, HUD has recently informed the City that the volunteer
waiver forms provided for this purpose would not be allowed on this
project. The project must be entirely completed at prevailing wage with
no use of volunteers.
Thus, JHSAL requests an extension of time on the CDBG funding so that
it may complete its fund-raising campaign and raise additional monies
necessary to complete the interior of the building. Additionally, the City
has recently provided $100,000.00 in this year’s CDBG budget for our
building. This funding will not be available until September of this year.
We need to have all of the funding carried forward into the same year so
that we may enter into a binding construction contract with sufficient
funding to complete the project.
If there is any further information you need or anything I can do to assist
you with the process, please contact me at your convenience. Thank you
for the help and guidance you-have continually provided on this project.
We are confident that the project will be completed within this next
funding cycle.
Sincerely,
JOIN HANDS-SAVE A LIFE
FRANK ANTHONY SORINO
Executive Director
FASlb
From: Debra Doerfler
To: Frank Boensch
Subject: Join Hands agreements
Frank, Just a heads up, you may recall back in December when there was another set of agreements that the
Promissory Note was not recorded (The County Recorder does not handle this type of document.)
Therefore, in order to speed up the processing of your documents I will not be sending the current
Promissory Note to the Recorders office. Only the Deed of Trust and the Agreement will be sent for
recordation. If you have any questions, please contact me at your earliest.
Debra
cc: Debbie Fountain