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HomeMy WebLinkAboutJT25L - RELOCATE 4TH DIST. COUR ~ COUNCIL/SANTA ANA ~ FINANCING AUTHORITY ACTION REQUEST FOR CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: FEBRUARY 7, 2005 TITLE: {lha^ CITY MANAGER APPROVED o As Recommended o As Amended o Ordinance on 1st Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For RELOCATION OF 4TH DISTRICT COURT OF APPEAL FACILITY CONTINUED TO --'" FILE NUMBER RECOMMENDED ACTION CITY COUNCIL ACTION 1. Authorize the City Manager and Clerk of the Council to execute a Purchase and Sale Agreement, and related documents, and approve the actions necessary for the sale of approximately two acres of Civic Center land to the California Judicial Council for construction of a new facility to house Division Three of the California Fourth District Court of Appeal. 2. Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an amendment to the professional services agreement with Gordon & Williams, Inc. to provide program management service for construction of the replacement parking garage for an approximate total project cost of $5.21 million. CITY COUNCIL/SANTA ANA FINANCING AUTHORITY ACTION Adopt a resolution authorizing the City Manager to execute a 15 year lease-purchase agreement with Sun Trust Leasing Corporation to finance a portion of the cost of a City-developed parking garage for the new Court of Appeal Facility, and approving related documents and actions. DISCUSSION The Fourth District Court of Appeal, based in San Diego, is the intermediate state appellate court serving Santa Ana and Orange County. Division Three of that court was established in 1982 to provide justices and facilities to JT25L-1 Public Hearing - Fourth District Court of Appeal February 7, 2005 Page 2 directly serve Orange County. Since its establishment , Division Three has been located in Santa Ana. Originally housed in a commercial office building on Santa Ana Boulevard, the Court is currently located in a facility at 925 N. Spurgeon Street in the Midtown Area. Division Three has now outgrown its Spurgeon Street courthouse and is seeking a new permanent location. A county-wide search conducted by the California Judicial Council resulted in the selection of a two acre site at the northwest corner of Santa Ana Boulevard and Ross Street in the Santa Ana Civic Center. (See Exhibit 1) The site is now occupied by the vacant temporary city jail and a portion of the City Hall parking lot. Under the terms of the proposed purchase and sale agreement, the City will sell the site for the courthouse to the State of California for $2.3 million. Further, the City will be responsible for the demolition of the vacant jail facility and the preparation of the site for the State-funded construction. The City will also construct a 300 space parking garage in front of City Hall. This new garage will provide approximately 70 spaces dedicated to Courthouse operations and personnel, with the balance of the spaces designed to accommodate the parking stalls displaced by the courthouse construction. As the agreement is one that is prepared by the State, it is recommended that the Council approve this agreement with the provision that non-substantive changes to the terms and conditions may be authorized by the City Manager and the City Attorney. In 2002, in anticipation of this project, the City Council approved a program management agreement with the parking garage design and construction firm of Gordon & Williams for $2.54 million. Under that agreement, Gordon & Williams is responsible for designing the garage and administering demolition and construction contracts for the project. As the scope and costs of the original proj ect has expanded, an amendment is necessary to enhance the scope of work to cover the $5.21 million in construction costs. The Purchase and Sale Agreement is scheduled to be considered by the State Public Works Board (PWB) at its meeting of February 4, 2005. If the agreements are approved by the City and the PWB, escrow will be scheduled to close on or before May 4, 2005. In the meantime, Gordon & Williams, under the supervision of the Public Works Agency, will immediately begin preparing plans and specifications for the garage and be prepared to contract for demolition and site clearance. JT25L-2 Public Hearing - Fourth District Court of Appeal February 7, 2005 Page 3 It is anticipated that the parking garage will be completed in 13 months, or approximately March 2006. The State plans to begin construction of the courthouse facility by early Summer 2006 and move the court personnel into their new permanent home in the Santa Ana Civic Center by Fall 2007. The design, construction and financing of the parking garage are estimated to cost a total of $5.3 million, with nearly half of that amount being provided by the sale of the site to the State. The balance will be financed over 15 years through the proposed lease-purchase financing agreement with Sun Trust Leasing Corporation. The estimated maximum annual lease payment for the garage is $298,600 based upon a maximum interest rate of 4.6 percent. In order to complete the financing, the firm of Quint and Thimmig will serve as bond counsel and Northcross, Hill & Ach will perform financial advisor services. FISCAL IMPACT Under the terms of the agreement, the City will receive $2.3 million in land sales proceeds. The balance of the funds for construction of the parking garage and preparation of the courthouse development site will be generated from the financing and available in the capital projects account for the Civic Center Parking Structure Project (account no. 51-012-6621, Project No. 2740). CONCUR: APPROVED AS TO FUNDS AND ACCOUNTS: es G. Ross ecutive Director Public Works Agency , i_ _ . _ _ ~ ~" \ \\~~\)"""") T~-^-, Francisco Gutierrez Executive Director, Finance and Management Services JT25L-3 (JWF 2/01/05) RESOLUTION NO. 2005-020 A RESOLUTION OF THE CITY COUNCil OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE EXECUTION OF CERTAIN lEASE FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO. BE IT RESOLVED BY THE CITY COUNCil OF THE CITY OF SANTA ANA AS FOllOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City proposes to finance the costs of the construction of a parking structure on City-owned property located adjacent to the proposed State Appellate Court Building in Santa Ana, California (the "Improvements"); B. The City has determined to finance the Improvements by entering into a site lease (the "Site lease") and a lease agreement (the "lease Agreement") with the Santa Ana Financing Authority (the "Authority") ; C. The Authority intends to assign its rights under the Site lease and the lease Agreement to one or more purchasers to be identified by SunTrust leasing Corporation, as placement agent; D. It is in the public interest and for the public benefit that the City authorize and direct execution of the Site lease and the lease Agreement with the Authority and certain other financing documents in connection therewith; and E. The documents below specified have been filed with the City and the members of the Council, with the aid of its staff, shall review said documents; Section 2. The below-enumerated documents be and are hereby approved, and the City Manager, the Finance Director, or the designee of any such official, is hereby authorized and directed to execute said documents, with such changes, insertions and omissions as may be approved by such official, and the Clerk of the Council is hereby authorized and directed to attest to such official's signature: Resolution No. 2005- Page 1 of 3 JT25L-4 A. The Site Lease, by and between the City, as lessor, and the Authority, as lessee, pursuant to which the City will lease certain real property (the "Site") to the Authority; and B. The Lease Agreement, by and between the Authority, as lessor, and the City, as lessee, pursuant to which the Authority will lease the Site and the Improvements back to the City, so long as the term of the Lease Agreement does not exceed thirty years, the total amount of the principal portion of the rent payable under the Lease Agreement does not exceed $3,000,000 and the interest rate payable with respect to the Lease Agreement does not exceed 4.30%. Section 3. The firm of Northcross Hill & Ach LLC is hereby retained as financial advisor to the City in connection with the lease financing approve by this resolution. The Mayor, the City Manager, the Finance Director, or the designee of any such official, is authorized to execute a financial advisory agreement with such firm in such form as shall be approved by the City Attorney. Section 4. The firm of Quint & Thimmig LLP is hereby retained as bond counsel to the City in connection with the lease financing approve by this resolution. The Mayor, the City Manager, the Finance Director, or the designee of any such official, is authorized to execute a financial advisory agreement with such firm in such form as shall be approved by the City Attorney. Section 5. The Mayor, the City Manager, the Finance Director, the City Clerk and all other appropriate officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates as may be necessary to effect the purposes of this resolution and the financing herein authorized. Section 6. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of ,2005. Miguel A. Pulido Mayor Resolution No. 2005- Page 2 of 3 JT25L-5 APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney AYES: Councilmembers NOES: Council members ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2005-020 to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2005- Page 3 of 3 JT25L-6