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i4Su;t;;.�l(>�Ujl I iL�.' . A-2006-3 3 8 :n�i11;4, iris„ PROGH, UNTIL k SURD%h' -. j0-ot--D7 CLERK OF COUNCIL DATE: 5_'o -07 PROGRAM MANAGEMENT AGREEMENT FOR THE CITY PROPERTY 10: ��-', (5 , GA t W THIS PROGRAM MANAGEMENT AGREEMENT ("Agreement") is entered into this 181h day of September, 2006, by and between GRANT GENERAL CONTRACTORS, a California corporation (hereinafter referred to as "Program Manager") and THE CITY OF SANTA ANA, a charter city and municipal corporation duly organized and existing under the constitution and laws of the State of California (hereinafter referred to as the "City"). RENOVATIONS RECITALS: A. The City and Program Manager desire to enter into an agreement by which Program Manager undertakes program management services for a public improvement project located in Auto Mall Drive ("the Project"). B. Both the City and Program Manager believe that services to be provided by Program Manager with respect to the Project are in the nature of professional services and thus not subject to competitive bidding requirements of Section 421 of the City's Charter, but rather constitute services which can be procured pursuant to City's Municipal Code Section 2-807. Consistent with the foregoing, it is the parties' intent that (i) Program Manager not act as a general contractor that "self performs" the work, sub -contractor or material supplier for any portion of the Project, but that all labor and materials would be provided by others pursuant to construction contracts let by the Program Manager as representative of the City as the "owner" (and, where such contracts would exceed $10,000 in value, would be competitively bid pursuant to Section 421 of the City's Charter). In consideration of the foregoing, the parties hereto mutually covenant and agree as follows: ARTICLE 1 1. DEFINITIONS The following words and phrases shall have the below definition pertaining to this Agreement and any related documents: Construction Contracts = construction and material supply contracts awarded to Contractors in accordance with the requirements of this Agreement; all Construction Contracts in excess of $10,000 shall be awarded to a Contractor only upon full compliance with the competitive bidding requirements of City Charter Section 421. Contractors = the construction contractors, subcontractors and material suppliers to be awarded construction or material supply contracts by the City (either directly or through Construction Manager on behalf of the City) for all or any portion of the Project construction work.