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Approval of Program Management <br />Agreement for City Property <br />Renovations Between the City of <br />Santa Ana and Grant General Contractors <br />September 18, 2006 <br />Page 2 <br />DISCUSSION <br />The Santa Ana Auto Mall was originally established by the Community <br />Redevelopment Agency in 1984 to assist with the retention and expansion <br />of local auto dealerships. The mall currently has 12 manufacturers <br />within eight new car dealerships, generating approximately $3.9 million <br />in annual sales tax revenue for the City. In May 2003, the Agency sold <br />$20 million in tax allocation bonds for the expansion and enhancement of <br />the mall. The expansion of the Auto Mall is well underway and includes <br />the opening of the mall to Edinger Avenue along with various upgrades, <br />such as new signage and landscaping, which are expected to benefit all <br />the dealerships. Various improvements in the City's right of way have <br />also been identified for overall enhancement of the mall. Some of these <br />improvements consist of removal of the guard shack, new landscaping in <br />the median island, directional signage, fence replacement and /or re- <br />painting, and landscape and signage improvements to the Ritchey Street <br />entrance. Grant Contractors is currently performing the improvements on <br />the Crevier expansion, which will include (phase II) landscape <br />improvements along Edinger and construction of a new right turn lane on <br />Auto Mall Drive for the City. <br />Due to economy of scale and to ensure coordination of improvements with <br />least impact to the dealers, it is desirable to utilize this same <br />contractor for the interior improvements of the mall under a Program <br />Management Agreement. Grant Contractors is a very experienced and <br />highly regarded general contractor and was the general contractor for <br />Crevier BMW's original facility in the Auto Mall. The Program Manager <br />would provide general administration of the Agreement, manage and <br />supervise the consultants and design professionals, manage the bidding <br />of all components of construction for the project. Grant would also <br />serve as construction manager for this project. The contract will <br />guarantee the cost of the project and Grant Contractors will assume all <br />the risks. The projected cost of the project is a not to exceed amount <br />of $260,000, assuming it runs concurrent with Crevier's phase II <br />improvements (expected to commence January - March 2007). <br />4 -2 <br />