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Home My WebLink AboutC28500 - FIND - Aquisition of Warehouse Facility Contract No. C28500 CITY OF PALM DESERT FINANCE DEPARTMENT Staff Report REQUEST: APPROVAL TO NEGOTIATE THE TERMS OF THE AGREEMENT TO RELEASE FUNDS TO FOOD IN NEED OF DISTRIBUTION (FIND) FOR ACQUISITION OF A WAREHOUSE FACILITY BY: PAUL S. GIBSON, DIRECTOR OF FINANCE DATE: JANUARY 22, 2009 CONTENTS: LETTER AND ATTACHMENT FROM FIND DATED JANUARY 5, 2009 Recommendation: By Minute Motion, that the City Council approve negotiation of the terms of the agreement to release funds to Food In Need of Distribution (FIND) for the acquisition of a warehouse facility. Funds are available in Fund 400. Background: Approximately three years ago, funds were approved to assist FIND in their pursuit of a larger warehouse facility that would better suit their needs. Funds were set aside for this purpose from the sale of land adjacent to the Costco Plaza on Dinah Shore Drive and Monterey Avenue. The organization is now in a position to finalize the purchase of the building, and has requested that pledged funding in the amount of $850,000 be released. Staff is requesting that the City Attorney, Assistant City Manager and Finance Director work to draft an agreement between the City of Palm Desert and FIND that would detail the release of said funds for escrow closure. Sufficient monies are budgeted in Fund 400. Submitted By: Approval: . . ( Paul S. Gibson, Finance Director J ti McCarthy, Int ' ity Manager PSG:nmo REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 22, 2009 XIV. NEW BUSINESS A. REQUEST FOR AUTHORIZATION TO NEGOTIATE TERMS OF AN AGREEMENT TO RELEASE FUNDS TO FOOD IN NEED OF DISTRIBUTION (FIND) FOR ACQUISITION OF A WAREHOUSE FACILITY (CONTRACT NO. C28500). Rec: By Minute Motion, authorize the City Attorney, Assistant City Manager, and Finance Director to negotiate terms of an agreement to release funds to FIND for its acquisition of a warehouse facility — funds for this purpose are available in Fund 400. CITY COUNCILAf�ION APPROVED DENiED RECEIVED OTHER MEET G DA � " ` AYF.S: ' � NOES: ABSENT: AI3STAIN: VERIFIED BY: — Original on File with City rk's Office � i4 RE��11 �� ; �� o � ��9 P��iYI � �LRT R�A - -�;-i � �`:. �� !, �t �� « „ � � �� > �� Hunger has no Limit Mr. Justin McCarthy Acting City Manager City of Palm Desert 73-510 Fred Warning Drive Palm Desert, Ca. 92260-2578 January 5, 2009 Dear Mr. McCarthy, This is a follow up to the attached letter, from Carlos Ortega, regarding the City of Palm Desert and its support of FIND Food Banks efforts to acquire a new warehouse facility. As requested, I have also included a brief inemo regarding FIND Food Bank, its activities Valley wide and specifically within the City of Palm Desert. Should more or additional information be helpful please do not hesitate to contact me. Once again, FIND would like to thank the City of Palm Desert for its continual and on going generous support. Given the difficulty many of our citizens are confronted with today the City of Palm Desert's willing to assist those requiring food assistance is very deeply appreciated. May I suggest that the City of Palm Desert consider releasing their funds,to FIND, for the close of escrow, for the acquisition of the new warehouse facility. Escrow documentation must include a"certificate of occupancy"issued by the City of Indio. This is the suggested language that has been recommended to other funders, regarding their release of their funds to FIND. Once again,thank you. Should you have any questions or which any additional information please do not hesitate to contact me. Sincerely, �c�...., c� _..1��`�j� David A. Pazadme FIND Food Bank, Inc. cc: David Erwin Paul Gibson 68-615 Perez Rd., 14 B, Cathedral City, CA. 92235, Web Site: www.findfoodbank.orp Office: 760-328-3663---Fax: 760-328-3994---Toll Free: 888-449-0613---Email Address: dtenold(a�findfoodbank.org C11 � 0 � Pfllff� � E � E � � - 73-5 i o F�.D WntuN� DlttvF, ' PALM DESERT, Cai.iFox��92260-2578 � °- TEL: 76o 346—o6ii Fnx: 76o 340-0574 -� infoC�palm-desert.org OFF7CE OF THE CITY MANAGER December 18, 2008 Mr. Davi�+ Paradine FIND Food Bank, Inc. " 68-615 Perez Road, 14B Cathedral City, California 92235 Dear David: i have reviewed your letter of December 12, 2008, wherein you asked the City to provide you with documentation that money has been set aside in reserve for the purchase of a warehouse facility. As you know, and based on conversations we have previously had, that money was to be made available to you when you had a building and entered into a purchase agreement. I have instructed the Finance Director and the City Attorney to work on this and schedule it for a future City Council agenda, possibly in January, with a recommendation that the City Council formally make this money available to you for the purchase of the warehouse facility. I suggest that you put together a document with all the necessary information regarding the location of the warehouse, how many people it will serve, the benefits to Palm Desert residents, and the benefits to area wide residents. In other words, please provide documentation requesting and/or justifying why the City is providing you with this money. Sincerely, �� CARLOS L. O EGA City Manager CLO:kr cc: Dave Erwin, City Attorney Paul Gibson, Finance Director �^�� TO: Mr. Justin McCarthy Acting City Manager City of Palm Desert FROM: David A. Paradine FIND Food Bank, Inc. RE: FIND Food Bank& City of Palm Desert DATE: January 5, 2009 The following is a brief over view of FIND Food Bank and its activities in the City of Palm Desert. Incorporated in 1983, for the past twenty six (26)years FIND Food Bank has provided food assistance and basic essentials to those who are in need of such assistance here in the Coachella Valley. T'his assistance is provided through a network of ninety five (95) member agencies; soup kitchens, food pantry's, homeless shelters, children's programs senior centers and other not for profit organization located in twenty two (22) communities throughout our Valley. FIND is the "Feeding America" (America's Second Harvest) food bank in eastern Riverside CounTy and the only distributor of United States Department of Agriculture, (USDA) commodities. While some charities may call themselves"food banks,"they are in fact not. Rather they are food distribution Sites that provide food and/or meals directly to the hungry. There are no alternatives to FIND,thus FIND fulfills a unique and critical � need,providing USDA and Feeding America food products to those charities who directly feed the hungry here in our Valley. At this time FIND'S ninety five (95) food/meal distribution Sites are serving,on average, 110,134 individuals EACH MONTH. On average, 11,266 Seniors, 6288 Homeless, 1824 Homebound, 12,450 Children, under the age of 6 yrs, 26,902 Children, 6 yrs to 18 yrs, and 51,404 Adults. As many of these individuals receive food assistance on a regular basis this number of 110,134 is best viewed as a"unit of service." Currently, FIND has seven(7) food/meal distribution Sites and one (1) shelter located in the City of Palm Desert. 'These member agencies are;Apostolic Church of God, Maggies Basement,New Era Outreach,Palm Desert Oasis, St. John's Lutheran Church, Valley Christian Assembly, Temple Sinai and Shelter From The Storm. During the past eleven (11)months,January through November,these member agencies served on average 8169 individuals EACH MONTH. On average 1370 Seniors, 30 Homeless, 260 Homebound, 806 Children,under the age of six (6), 1635 Children, ages six(6)to eighteen(18) and 4068 adults. As noted above,many of these individuals receive food assistance on a regular basis,therefore,these number are best viewed as a"unit of service." The above eight(8)member agencies, during the past eleven(11)months,received from FIND Food Bank, Inc. 396,8831bs of food. To help put 396,8831bs of food into perspective. T'hat will provide 310,064 meals or 850 meals each day, seven days a week for an entire year. As previously reported to members of the City Council, FIND and its member agencies are currently experiencing an unprecedented increase in the numbers of individuals seeking food assistance. Individuals and families who were once able to stretch their bi monthly or monthly pay check from one pay period to the next are no longer able to do so and find themselves requiring food assistance in the latter days of each month. This trend that began well over six months ago is not likely to end soon. In March of 2008 FIND'S monthly reports showed 105,659 individuals being served, each month,by its ninety five (95)member agencies. In November of 2008, individuals being served, each month, increased to 125,175, an increase of nineteen(19%)percent in just eight month. FIND is fortunate that it has been able to keep abreast of this increased demand through the support and generosity of individuals, organizations like the"Bob Hope Classic"and municipalities like the City of Palm Desert. FIND is truly grateful for this support. At this time it is anticipated that FIND Food Bank, Inc. will purchase, in April 2009, a new 36,000 sq/ft warehouse facility located on 1.87 acres, at 83-775 Citrus Ave.,in Indio Ca. 92201-3456. This new warehouse facility will more than triple FIND'S current warehouse and refrigeration space which is desperately needed as FIND has completely outgrown its current facility. To date, $4, 250,000 has been pledged to FIND'S, $5,000,000. capital fund raising efforts. This amount includes the Desert HealthCare District's matching grant of $1,700,000. Matching the two original pledges of$850,000 each, made to this project by the City of Palm Desert and the County of Riverside. This tatal also includes pledges of $250,000 each, made by the Cities of Rancho Mirage, Indian Wells, and La Quinta. At this time,well over an additional $1,000,000 in requests for support of this project are pending and decisions regarding these requests are anticipated to 6e made within the next ninety (90)days. It is anticipated that FIND Food Bank will be fully operational in its new warehouse facility by mid May of 2009.