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Home My WebLink About06/20/05~~ REQUEST FOR COUNCIL/FINANCING ~ ~"`~~n'sr AUTHORITY/REDEVELOPMENT AGENCY ACTION CITY COUNCIL MEETING DATE: JvNE 2a, 2005 TITLE: RELOCATION OF 4Ta DISTRICT COURT OF APPEAL FACILITY/CONSTRUCTION OF PARKING GARAGE _` i ~~~~~ CITY MANAGER RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 15t Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER 1. Authorize the City Manager and Clerk of the Council to execute a revised 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 a second 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 56.0 million. 3. Adopt a resolution authorizing and directing the execution of certain lease financing documents related to construction of the parking garage, and authorizing and directing certain actions with respect thereto. SANTA ANA FINANCING AUTHORITY ACTION Adopt a resolution authorizing and directing the execution of certain lease financing. documents related to construction of the parking garage, and authorizing and directing certain actions with respect thereto. e~ Fourth District Court of Appeal June 20, 2005 Page 2 REDEVELOPMENT AGENCY ACTION Adopt a resolution authorizing and directing the execution of reimbursement agreement in connection with certain financing proceedings by the City of Santa Ana and approving related documents and official 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 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 a nominal fee. 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. Under that agreement, Gordon & Williams is responsible for designing the garage and administering demolition and construction contracts for the project. On February 7, 2005 the City Council approved an amendment to the agreement for a total cost of $5.21 million. After final negotiation with State of California for the proposed Appellate 3 Fourth District Court of Appeal June 20, 2005 ~ "~ Page 3 Court, the scope and costs of the project has expanded, and a second amendment is necessary to enhance the scope of work to cover the $6.0 million in construction costs. Upon approval by the State Public Works Board (PWB) and the State Judicial Council, 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. It is anticipated that the parking garage will be completed in 13 months, or approximately October 2006. The State plans to begin construction of the courthouse facility by early spring 2007 and move the court personnel into their new permanent home in the Santa Ana Civic Center by Fall 2008. The design, construction and financing of the parking garage are estimated to cost a total of $6 million, 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. Upon project approval by the State, the City would seek competitive lease-purchase financing quotes in an amount not to exceed five percent. FISCAL IMPACT 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: Ja ~s G. Ross cutive Director lic Works Agency tric' Whitake Executi e Director Community Development Agency ~k'rancisco Gutierrez (/_ Executive Director, Finance and Management Services 3 !; ~ _ ~~ i . a ' ~ ~ '_. _ f I i ',. . -~ s ~ '-, .. t i w.. ..:. 1 j . - ~!S S _ ... . . f'~ JI ~__ - - ~ - ~```t~ _ .T.._._.._,, . ter. - - . _. ~. ~, -. ~ _ ~ t -; ~ '--r ~ --- ...y ,. '' i ~~Qa i ~ ~.-_ _ , ~... 1 c ~ r L. .._ 1 _. ~ '-L r -r-f __~ ~~ Vii.--..t_.. ~ ' L.1 ~ ~ ~ I ~ EXISTUVC~ ~ ~~ ~ '- :~. a ~ :.. ~ T1~4 `' S'T'ATE ~, ~ -_- -~, -.~, ~ ~, i ' ~ _ ~. 1 I _ y 'i 'f' ~ . y..•r_.~ • i . _ -.~-- ,~ .^ T -. ~. _. ., ..,~~..•. ~. ~ t . . ' u.. ~ Tom' I _ .yf i ~1 .. f \ r '~ ' _.____ EXHIBIT 1 SANTA ANA Tdle= P~i _ Jac~wAGO1o ~ ANDD 4THCDlS'i'RICT COURT O APPEALS .~.~, RESOLUTION N0.{SAFA 2005-002 RESOLUTION APPROVING, AUTHORIZING AND DIRECTING PREPARATION AND EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO BE IT RESOLVED BY THE SANTA ANA FINANCING AUTHORITY AS FOLLOWS: Section 1. The Board of Directors (the "Board") of the Santa Ana Financing Authority (the "Authority") finds, determines and declares as follows; A. The City of Santa Ana (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 Authority; C. The Authority intends to assign its rights under the Site Lease and the Lease Agreement to one or more purchasers to be determined (the "Assignee"); and D. The documents below specified shall be filed with the Authority and the members of the Board, with the aid of its staff, shall review said documents; Section 2. Resolution No. SAFA 2005-001 previously adopted by the Board on February 7, 2005, relating to the financing of the Improvements is hereby rescinded. Section 3. The below-enumerated documents, substantially in the forms on file with the Secretary, be and are hereby approved, and the Executive Director is hereby authorized and directed to execute said documents, with such changes, insertions and omissions as may be approved by such official, and the Secretary is hereby authorized and directed to attest to such official's signature: 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; 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; and Resolution No. SAFA 2005-002 Page 1 of 2 C. An assignment agreement, by and between the Authority and the Assignee, pursuant to which the Authority will assign certain of its rights under the Lease Agreement, including its right to receive lease payments thereunder, to the Assignee. Section 4. The Executive Director, the Secretary and other officials of the Authority 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 lease financing herein authorized. Section 5. This Resolution shall take effect upon its adoption by the Authority Board, and the Secretary shall attest to and certify the vote adopting this Resolution. ADOPTED this 20th day of June, 2005. APPROVED AS TO FORM: Joseph W. Fletcher, Authority Counsel AYES: Authoritymembers NOES: Authoritymembers ABSTAIN: Authoritymembers NOT PRESENT: Authoritymembers Miguel A. Pulido Chairperson CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Secretary of the Authority, do hereby attest to and certify the attached Resolution No. 2005- to be the original a resolution duly adopted by the Santa Ana Financing Authority on the 20th day of June, 2005. Date: Resolution ,No. SAFA 2005-002 Page 2 of 2 Authority Secretary