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HomeMy WebLinkAboutAgenda 3.E 06/21/2004•h iil CITY OF P ETALUMA, CALIFORNIA AGENDA. BILL JUN 2 1 i� 2"e Title: Resolution Approving "Correction/Modification of Meeting Dater June 21, 2004 il, " G rant Deed and Conditions" (Petaluma Ecumenical Prope pe les, PEP) Meeting Time: 3:00 PM ❑ 7:00 PM Category (check one): Consent Calendar ❑ Public Hearing ❑ New Business Unfinished Business F Presenta'46 Dtnaj�tment: Director: Contact Person: Phone Number: Community Mike Moor o "I Bonn 778-4484 (direct line) Development/Housing, Cost of Proposal: 0 Account Number: N/A, Amount Budgeted: 0 Name of Fund: N/A Attach ments .,to.!A26iida'Packet,1tem: Exhib 1 1 Letter from PEP Bo a Pr� 'dent if . rd P resident Ekhibit 2. Existing (1979) Grant Deed Exhibit,3. Modified (2004) Grant Deed 5 Affi bit4. Resolution Summary Statement: The 'building which houses PEP s, corporate office was do nated by the City to that agency in 1979. At that. time, a deed restriction limited the use of, the property for the sole purpose of I providing housing, includin related ''iadi lities and seryi'ces for low and moderate income senior . /or citizens..." At this time PEP is required to relocate itg office and is: requesting a modification to the deed restriction which will .allow them to rent the property to another entity. Any rent proceeds will continue to be utilized by PEP to support its , mission-of provi iding forhow-income seniors. Recommended City "Council- Action/Suggested Motion Adopt- Resolution Approving "Co'rrection/1\46dification of Grant Deed and Conditions" (Petaluma Ecumenical Properties, PEP) Reviewed -b Yi aife ec or:, -y n e A 9' vi e d r n' ' e V": e "Approved! j*'CW Manager: Date: Today ls Date Revision - # and Dat e R6visedi: File Code: June 2, 2004 Pepdoedmodification/d/bonne # CITY OF PE i A1,— LIMA, CALIFORNIA ORNIA JUNE 21, 2004 AGENDA REPORT FOR s Resolution .Approving- " ation of Grant Deed and Conditions" (Petaluma Ecumenical Correction /Modifica „ properties,, PEP) 1'. ExECUTIVE SUMMARY The building `which houses PEP's corporate office (corner of Caulfield and S. McDowell) was donated by the City to that agency in. 1,979. At that time, a deed restriction'lmited the use of the property for the sole purpose of "providing housing; mclud ng,,related facilities and services, for low and /or moderate income senior citizens._" At this time PEP is required to relocate its office and is requesting a modification to the deed restriction, which will allow them to rent .,the property to another entity. Any rent ,proceeds will continue to be utilized by PEP to support its mission of,providing housing for low - income seniors. 2. BACKGROUND PEP is being forced -to move from its existing office at 1400 Caulfield Lane due to a quirk in the workers' compensation law. A workers comp ruling has determined that PEP's current office's proximity to their housing properties require that the PEP administrative: staff be classified as "on -site managers," the highest cost category. (See Exhibit 2 for a detailed explanation of the Workers' Comp ruling.) 3. ALTERNATIVES PEP roust move because of the Workers' Comp ruling; following are possible alternative uses of the building: (1) Rent /lease the property to another business or nonprofit agency. (2) Rehab the building for use as a senior group facility (3) Do nothing; the building, would remain empty 4. FINANCIAL IMPAC`rS PEP will lower their Workers' Comp payments by $40,000 /year by being able to re- classify their employees. This deed modification will have no financial impact on the City of Petaluma. 5. CONCLUSION With the. approval of "the modification to the existing. deed, PEP will realize a substantial savings and the City's goal of ensuring any rental profits will be utilized for the furtherance of serving low - income seniors will be secured. 6. OUTC61V[ES 6R P ERFORMANCE 'MEASUREMENTS THAT WILL IDENTIF` PEP will comply with the Workers' Comp :ruling; realize $40,000: in savings expenditures which serve senior citizens. 7. RECOMMENDAT ON : Adopt the attached resolution, Exhibit „4. g1forms /2003 agenda bill can be utilized for other 11 11 r / c of pol.rzte EXj11B1T 1 Pe 'c(Cf:'f11r. 1.40 C.at!f(!elc, Lane - {'rtalunua � C 1 9P1,i4- J4C irtnc ( /fit ) e 62-25,56 a J'a\ f, U! tll iPf'L May 13 2004 MAY 1 3. 2004 Mr. Michael A. Bierman . ..... ...... City Manager P C D C City of Petaluma, 11 English Street Petaluma, CA 94952 RE :, Relocation PEP Office /Deed,Restriction -`' \;1116o _ <` Dear Mr. Bierman Petaluma Ecumenical Properties, (d_ba PEP Housing) corporate office will be relocating to 3920 Cypress Drive jin Petaluma in the first week of June 2004.' To that end, we would like to rent the current office to another business, preferably 'a non - profit. In researching the deed for 1400 Caulfield Lane "('formerly referred to as Petaluma Ecumenical CA Projects - 739 S. M' 'Dowell Blvd_.) it sates that the usage shall be for t Ile the rovision of affordable housin g services P unless the deed is modified Ah).Mount,tin by all parties (see copy attached. Therefore, the Board of Directors ` asks that this,, deed be modified at the earliest convenience of the City of Petaluma so that we may rent the.,office and' realize rental income. POt:;iUMa, c :\ ut >:" The primary reason 1 4 for- our move is the decision of Workers Comp in determining our employee classifications. They have determined that: a.) Due to ow- 'proximity to our housing °proprieties, and b.) The fact that , t 4 several of our staff, has offices outside the" 14;00 ;Caulfield Lane location (we relocated staff to, 579 Vallejo. Street in 200 1) our staff are classified 71 \\;i ,,,.., in the highest category, essentially, as "On Site Managers", which they clearly are not. I We attempted, to have this decision reversed through appeals to no avail., We, five p y cannot change the classification. I ,1 T he only alternative is to move to 'a location not adjacent to the corporate office, and relocate all the staff under one roof. ..For your reference, here is the Worker's .Comp ruling: "Location: A place of business at which the employer controls the facilities and conducts operations. ,The• location may include, but is not ® limited to, ,buildings,; rooms, suites, floors structures, yards, fields, lots or acreage. , ,, ,, r1v, , lrl,or V•nl ��< i,� „r / /rt,;lil]/ „fl, , ��, ?n�, n�uL tA, /. ����,,,.nrt, ,ai;? /�lv•l .�,•i•rar,� .urrl,r /� �t „r. v l „ � , ,� r',ar u�<•��,i1, t�nn�ititurili /. A • Page 2 of 2 Two or more facilities constitute a single location for classification purposes if they are located' a. in the same building b. on a single uninterrupted property, such as adjacent buildings separated only by open space; c. in the same block; d., in adjoining city blocks or separated , only a s in g le street or right -o wa y 9 f y of a railroad; or e: on opposite sides of a .stream or canal that are connected by a bridge, highway, or other structure affording passage .(other than by .boat) across a stream." This definition was used to define Sue Castellucci, Susan L., I. Duly and Jim Langford as "On-Site Site Managers "' which . is an extremely expensive classification for Workers Comp. In ith PEP's �Y growth, our new name "PEP Housing ", the generous rent by the new landlord, and this Workers Comp decision - we have decided that now is'the time,,to move. to further discuss this • Please feel free to contact Vera R. Ciammetti or me s. issue and facilitate the deed restriction. On behalf of the Board of Directors, thank you for all your continued su pP ort of PEP and for the working relationship with PEP staff and Board. Yours truly, Len Svinth, President Board of ;Directors Eric. Cc: Bonne Gaebler, Housing Administrator Vera R, C'iammetti, Executive Director, PEP Housing L I 10 • BCOt'��c) PA6 EXHIBIT 2 I Grant Deed Recording Requested By:, PETALUMA ECUMENICAL 'PROJECTS and when recorded Mail to Petaluma Ecumenical Projects 220 Stanley .Street, Petaluma, CA 94951 V o3'046 mail all correspondence to: Petaluma Ecume* 220'Stanley Street Petaluma, CA 94952 pro ects GRANT DEED Ra ft* At Request Of IA. SUN 1 91979 OFFICIAl2 RECORDS SONOMA COUNTY CALIF. • $ B�c�dec DOCUMENTARY TRANSFER TAX $ .......... ..... COMPUTED ON FULL VALUE OF PROPERTY CONVEYED, OR ,Q COMPU D ON FULL VALUE LESS LIENS & ENCUMBRANCES RE OF SALE. W, agent N G T ure of declare terminin x •firm name: CITY OF Unincorporlled The City of Petaluma, Seller /Gr'antor declares and acknowledges receipt of VALUABLE CONSIDERATION, including at least the following: 1) A nominal monetary amount.; and, 2) other covenants :and/or. agreeme'nt made between the parties to an agreement evidenced - by that document en`title.d "Agreemen "t to Buy ; and `t,ell Real .Property" consisting of 4, pa'ges between the Grantor /Seller (City of Petaluma) and the Grantee /Purchaser (Petaluma Ecu- menical Projects, Inc.)'a copy of which =_is appended to this. Deed a incorporated.heren 'as though fully set out; and, 3) most importantly notwithstanding any repetition and without reservation: .(a,) all the restrictions,, „cond covenants and /or agreements as set forth re her n - except as othex- wise provided ,herein., shall affec't. the use of said real property-an d all improvement present and future, and. . _ are made for the direct benefit of -and enure to th City of Peta luma and all its, aiftizens,.their successors and ass igns and shall run w. th't =he�Iand and burden the property, all improvements present and future, the Purchase r /Grante;e, its successok,s and assigns, and shall continue for a period o'f Ininety -mine (99) years and theieaftet may be appropriat`ely extended by the City of Petaluma, its 'successors or assigns in the following manner Grant Deed - Petaluma Ecumen Page 1 'of 3 -b CUE; 3583 PACE `02 w (1) `the sole total and 'exclus use shall be to provide housing., including related. facilities and servi.c.es, for low and /.or moderate income sen�i.or citzens rega'r'dless of their race, color, c_r`eed, ancestry, national origin, seIx, o.r religious persuasion or th -e lack thereof; and that (2) The violation or breach of any'of the restrictions,, conditions, covenants 'and /or agree ments contained herein, shall cause the automatic, reversion of title to said property and all im, provements thereon i mm e d iate ly. to the City o.f Petaluma, provided that any violation or breach. 8ha11 nbi preclude the right 'of any holder of a. Mortga9e or Deed of, Trust, held in good faith and given for value, including any legally secured lien or debt; and that (b) the restrictions, conditions, covenants and /or agreements herein may be modified, annulled, .or waived by' written consent ;of the p'artles, their .s s uccesors . or assigns, duly recorded as an integral part of'-this. Deed; and that (e) The provisions contained in this Grant D.ee,d are 'binding' upon the Grantee and enure to the benefit of- • and are' enforceable, by the City of Petaluma and its cit.zens., their successors or- assigns as, against the Grantee, its successors or assigns, and that, (d) a failure to enforce such pr 'ovis:ions a S contained here -in shall in no event be !deemed a waiver. of the . right to do so thereafter; and having thus - acknow- ledged and declare said hereby, GRANT To PETALUMA •ECUMENICAL PROJECTS, I -NC'. ,,, the. Purchaser/ Grantee herein 'who by acc,e:ptance of this Grant Deed acknowledges and agrees to each and every' pr;ovisaon thereof and takes title to the following descr ;bed real pvopert in the City of Petaluma, County of` Sonoma, State of C al if.or ni a:: That certain prem=i describes a ,, s `A.. No. 7- 570 -10 and also known as 739 So.ut.h. McDowell Blvd. , Petaluma, CA 94952. Grant De ed PetaIuma Ecumenical Projects Page 2 of 3 Dated: CITY OF PETALUMA a_ lifornia municipal corpora o By - a r is Hilligoss, May By atricia E. Bernard, City Cler r - APPROUEDI.AS TO F RM.- F P. LUV'fefidh Klose, City Attorney Jo L. Scharer, Director of Fi�iiance` ACCEPTED BY: T' thy 'P, K llgrem' President PETALUMA ECUMENICAL PROJECTS, INC,. Grant Deed Petaluma Ecumenical Projects Page 3 of 3 V 030 �t�� RECORDING REQUESTED BY P ECUMENICAL PROPERTIES WHEN RECORDED MAIL TO PETALUMA ECUMENICAL PROPERTIES ,3920; Cypress Drive, Suite B Petaluma, CA 94954 CORRECTION/MODIFICATION OF A P.N NO. 7- 570 -10 maim EXHIBIT 3 ONDITIONS THE UNDERSIGNED GRANTOR(s) DECLARE(s); DOCUMENTARY TRANSFER TAX is $ 0. CITY TAX $ 0 Transfer is a public entity'toa non -profit corporation. Exempt-pursuant to'R & T Code §19928 e F 6 ant6e underthaOF PETALUMA, Grant s, the Seller /Grantor and PETALUMA ECUMENICAL PROJECTS, INC. is the MA, , is the June .14, 1 andTecorded b y the.Sonoma County Recorder in Book . 83 at Page 01 wherein the GLty of Petaluma granfed to PETALUMA ECUMENICAL PROJECTS, INC. that ce real property located In the City of Petaluma, County of Sonoma, State of California described as: p o. 5-570- and also known as 739 South McDowell Th at certain re Cal fom a wh ch .P N ' date of said transfer is also commonly Blvd. ,Petaluma, , , premises since the described as 14'00 Caulfield Lane, Petaluma, California I.. On or about May 17, 2001, in accordance with a vote of its Board of Directors, duly noticed and held, PETALUMA ECUMENICAL PRO'JECTS',h' IN G. changed its corporate name to PETALUMA ECUMENICAL PROPERTIES INC. and caused ,a Certification of Amendment ' of Articles of Incorporation of Petaluma Ecumenical Projects, to be filed on June 7, .2001. in the office of the ' Secretary Secretary of State of the State of California. The parties hereto acknowledge that PETALUMA ECUMENICAL PROPERTIES, INC'. is the owner of the within - described property undersaid Grant Deed and that each reference in said Grant Deed to PETALUMA ECUMENICAL PROJECTS, INC. means PETALUMA ECUMENICAL PROPERTIES; INC.. II. The grant of property under said Grant Deed was subject -to certain restrictions, conditions, covenants and /or agreements retained by and in favor of the Grantor as to Grantee's use of the property. Paragraph 3)(b) of said Grant Deed provided for modification of such restrictions, conditions, covenants and /or agreements as follows: °(b) the restrictions, conditions; covenants and /Qr herein may be modified, annulled or waived by written consent of the parties, their successors or ass'igns,. duly recorded as an integral part of this Grant Deed." Ill ke Paragraph the authority set forthJn said Paragraph 3)(b), the.unde.rsigned Grantor and Grantee hereby g p 3)(a)(1) as set forth in the said Grant Deed dated and ad "opt in its place the following: (1) The sole, total and exclusive use of the property shall be to provide.housing including related facilities and services for low, and /or ri odimrate ;nv. Sei �illr citizens, and /or for the rental of said property for the purpose of supplemental income to the Grantee, to support`itsmission of providing housing to the very low, low and /or moderate. income community; regardless of their race, color, creed, :ancestry, national origin, sex or religious preference, or lack thereof." IV. In all other respects, the parties reaffirm the terms oHhe Grant Deed, dated June 14, 1979. GRANTOR: CITY OF PETALUMA, a California MunicipalCorporation DATED: By: DAVID GLASS, 'Mayor DATED: By: GAYLE PETERSEN City APPROVED AS FORM: RICHARD RUDNANSKY; City Attorney MICHAEL A., BIERMAN, City'Manager. . ACCEPTANCE_BY'GRANTEE: PETALUMA PROPERTIES, INC. A California, No By acn/C DATED: L N SVIN President 1✓'L DATED: ;ERA R. CI "MMETfiL :Executive Director • I EXHIBIT 4 . i r RESOLUTION APPROVING A CORRECTION /MODIFICATION OF GRANT DEED AND CONDITIONS WHEREAS in 1979 Petaluma Ecumenical Properties (PEP) received a donation of property located at 1400 Caulfield Lane; and p oWHEREAS g housing, ng, mcludng related facilities limiting the use of the property for the sole purpose of and services, for low and/or moderate income senior citizens... "; and WHEREAS PEP has utilized the property as its corporate office but is now required to re- locate due to changes in the Workers' Compensation regulations; and WHEREAS the best alternative for the property is for PEP to rent or lease the office to another nonprofit agency or a private sector business and utilize any profits to forward PEP's mission to serve low- income seniors; NOW THEREFORE BE IT RESOLVED that:the City Council approves the replacement of the existing deed with a correction/modification upport ss of lowing PEP to rent or lease said property for the purpose of supplemental its providing housing to low - income seniors, Exhibit A to this resolution.