AMENDMENT NO. 2 TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF SAN BERNARDINO
AND
PA-AN, INC. (STUDIO 6 SUITES)
This Amendment No. 2 (“Amendment #2”) to the Professional Services Agreement is made and entered into as of April 2, 2025 (“Effective Date”), by and between the City of San Bernardino (a charter city and municipal corporation organized and operating under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, California 92401) (“City”) and PA-AN, INC. (Studio 6 Suites) (a corporation with its principal place of business at 607 West 5 th Street, San Bernardino, California 92410) (“Owner”). City and Owner are sometimes referred to herein individually as a “Party” and collectively as “Parties”.
RECITALS
A. The Parties entered into an agreement dated March 20, 2024, for the purpose of providing interim emergency shelter motel rooms to be used by individuals experiencing homelessness (“Agreement”); and
B. The Parties entered into Amendment No. 1 dated November 20, 2024, to increase the number of motel rooms and beds, and extend the term of the Agreement to December 31, 2026, for the continued performance of the services; and C. However, due to an administrative error, the executed version of Amendment No. 1 contained incorrect budget amounts that were not aligned with the version presented to and approved by the City Council.
D. The Parties now desire to formally terminate Amendment No. 1 and enter into this Amendment No. 2, which supersedes and replaces Amendment No. 1 in its entirety, incorporating the updated budget amounts and provisions.
NOW, THEREFORE, the Parties mutually agree as follows:
AGREEMENT
1. Incorporation of Recitals. The recitals listed above are true and correct, and are hereby incorporated herein by this reference.
2. Termination of Amendment No. 1. The Parties mutually agree that Amendment No. 1, dated November 20, 2024, is hereby terminated in its entirety and shall have no force or effect. All references to Amendment No. 1 in the Agreement or any related documents shall be considered null and void.
3. Compensation. Paragraph 4b of the Agreement is hereby amended by replacing the not-to-exceed sum of “$668,640” with the sum “$733,640”.
4. Rate Schedule. Exhibit B of the original Agreement and Amendment No.1 is hereby deleted in its entirety and replaced with Exhibit B-1, attached hereto and incorporated herein by reference.
5. Continuing Effect of Agreement. Except as amended by this Amendment #2, all provisions of the shall remain in full force and effect, and shall govern the actions of the Parties under this Amendment #2. Whenever the term “Agreement” appears in the original Agreement from and after the date of this Amendment #2, it shall mean the Agreement as amended by this Amendment #2.
6. Electronic Transmission. A manually signed copy of this Amendment #2 which is transmitted by facsimile, electronic mail, or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Amendment #2 for all purposes. This Amendment #2 may be signed using an electronic signature.
7. Counterparts. This Amendment #2 may be signed in counterparts, each of which shall constitute an original.
[SIGNATURES ON FOLLOWING PAGE]
SIGNATURE PAGE FOR
AMENDMENT NO. 2 TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF SAN BERNARDINO
AND
PA-IN, INC. (STUDIO 6 SUITES)
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment #2 on the Effective Date.
CITY OF SAN BERNARDINO
APPROVED BY:
William Gallardo
Interim City Manager
Attested By:
Genoveva Rocha, CMC
City Clerk
APPROVED AS TO FORM:
Best Best & Krieger LLP
City Attorney
PA-AN, INC. (STUDIO 6 SUITES)
Anand Patel
Owner
Exhibit B-1
Rates Schedule
The following rate schedule is a projection of anticipated spending and not a commitment. The City will only pay for rooms as needed based on the quoted room rate of $70 a night for a single room and $80 a night for a double room not including the appropriate tax.
The City acknowledges that costs have been incurred since the implementation of the program under the Permanent Local Housing Allocation (PLHA) and Community Development Block Grant Coronavirus (CDBG-CV) funds. As a result, remaining available funds are subject to reconciliation based on actual expenditures to ensure financial compliance and reporting accuracy. The total expenditures under the PLHA and CDBG-CV funds shall not exceed $668,640.
Studio 6 Suites (Updated Rate Schedule)
Month
Number
of
Single
Rooms
RATE
1 Number
of
Double
Rooms RATE 2 Nights
Cost of
Single
Rooms Per
Month
Cost of
Double
Rooms Per
Month
Program Cost per
Month
1 20 70 10 80 30 $ 42,000.00 $ 24,000.00 $ 66,000.00 2 20 70 10 80 30 $ 42,000.00 $ 24,000.00 $ 66,000.00 3 20 70 10 80 30 $ 42,000.00 $ 24,000.00 $ 66,000.00 4 20 70 10 80 30 $ 42,000.00 $ 24,000.00 $ 66,000.00 5 20 70 10 80 30 $ 42,000.00 $ 24,000.00 $ 66,000.00 6 20 70 10 80 30 $ 42,000.00 $ 24,000.00 $ 66,000.00 7 20 70 10 80 30 $ 42,000.00 $ 24,000.00 $ 66,000.00 8 20 70 10 80 30 $ 42,000.00 $ 24,000.00 $ 66,000.00 9 20 70 10 80 30 $ 42,000.00 $ 24,000.00 $ 66,000.00 10 20 70 10 80 30 $ 42,000.00 $ 24,000.00 $ 66,000.00 11 20 70 10 80 4 $ 5,600.00 $ 3,200.00 $ 8,800.00 12 20 70 10 80 0 $ - $ - $ - $ 668,640.00
PD CDBG Funds not to exceed $ 65,000.00
NOT TO EXCEED TOTAL ANNUAL AMOUNT $ 733,640.00
Permanent Local Housing Fund Allocation: $229,939
Community Development Block Grant Coronavirus: $438,701 Community Development Block Grant: not to exceed $65,000 Total Number of Single Rooms: 20
Total Number of Double Rooms: 10
Total Number of Beds: 40