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HomeMy WebLinkAbout80A - JOINT CITY PROPERTY RENOVATIONS MEETING DATE: REQUEST FOR COUNCILI AGENCY ACTION CLERK OF COUNCIL USE ONLY: SEPTEMBER 18, 2006 TITLE: APPROVED o As Recommended o As Amended o Ordinance on 1 st Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For APPROVAL OF PROGRAM MANAGEMENT AGREEMENT FOR CITY PROPERTY RENOVATIONS BETWEEN THE CITY OF SANTA ANA AND GRANT GENERAL CONTRACTORS Ma ~.)~. CITY MANAGER E ECUTIVE DI CTOR CONTINUED TO FILE NUMBER RECOMMENDED ACTION CITY COUNCIL ACTION 1. Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute a Program Management Agreement for Santa Ana Auto Mall Property Renovations with Grant General Contractors in an amount not to exceed $260,000. 2. Approve a Funding Analysis with a total estimated construction cost of $314,000. 3. Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute a Cooperative Agreement between the City of Santa Ana and the Community Redevelopment Agency for Agency funding of these public improvements. COMMUNITY REDEVELOPMENT AGENCY ACTION Direct the Agency General Counsel to prepare and authorize the Executive Director to execute a Cooperative Agreement between the City of Santa Ana and the Community Redevelopment Agency for funding of these public improvements. 80A-1 Approval of Program Management Agreement for City Property Renovations Between the City of Santa Ana and Grant General Contractors September 18, 2006 Page 2 DISCUSSION The Santa Ana Auto Mall was originally established by the Community Redevelopment Agency in 1984 to assist with the retention and expansion of local auto dealerships. The mall currently has 12 manufacturers within eight new car dealerships, generating approximately $3.9 million in annual sales tax revenue for the City. In May 2003, the Agency sold $20 million in tax allocation bonds for the expansion and enhancement of the mall. The expansion of the Auto Mall is well underway and includes the opening of the mall to Edinger Avenue along with various upgrades, such as new signage and landscaping, which are expected to benefit all the dealerships. Various improvements in the City's right of way have also been identified for overall enhancement of the mall. Some of these improvements consist of removal of the guard shack, new landscaping in the median island, directional signage, fence replacement and/or re- painting, and landscape and signage improvements to the Ritchey Street entrance. Grant Contractors is currently performing the improvements on the Crevier expansion, which will include (phase II) landscape improvements along Edinger and construction of a new right turn lane on Auto Mall Drive for the City. Due to economy of scale and to ensure coordination of improvements with least impact to the dealers, it is desirable to utilize this same contractor for the interior improvements of the mall under a Program Management Agreement. Grant Contractors is a very experienced and highly regarded general contractor and was the general contractor for Crevier BMW's original facility in the Auto Mall. The Program Manager would provide general administration of the Agreement, manage and supervise the consultants and design professionals, manage the bidding of all components of construction for the proj ect. Grant would also serve as construction manager for this project. The contract will guarantee the cost of the project and Grant Contractors will assume all the risks. The projected cost of the project is a not to exceed amount of $260,000, assuming it runs concurrent with Crevier's phase II improvements (expected to commence January - March 2007) . 80A-2 Approval of Program Management Agreement for City Property Renovations Between the City of Santa Ana and Grant General Contractors September 18, 2006 Page 3 ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the proposed proj ect is exempt from further review. Categorical Exemption ER No. 06-139 will be filed for this report. FISCAL IMPACT The Funding Analysis shows a total $314,000 for the project (Exhibit 1). Main Tax Allocation Bond Series 2003A 552-936-6631, Project 9257). estimated construction cost of Funds are available in the South Capi tal proj ect account (account APPROVED AS TO FUNDS AND ACCOUNTS: ~1i;fr~tWtuh Assistant Director Community Development Agency (~~U~~-~- G 4J Executive Director Finance and Management Services Agency SGH/VU/SG/mlr H:\ACTIONS\2006 CC\JT CC-CRA Grant Contract at Risk Auto Mall 9-1B-06.doc 80A-3 FUNDING ANALYSIS AUTO MALL PROPERTY RENOVATIONS Construction Contract Additional Inspection & Testing Contingencies $260,000 15,000 39,000 TOTAL ESTIMATED CONSTRUCTION COSTS $314,000 Exhibit 1 80A-4