HomeMy WebLinkAbout65B - MATER DEI UPDATE•
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CITY COUNCIL MEETING DATE:
MAY 17, 2016
TITLE:
MATER DEI APPENDIX ANALYSIS AND
UPDATE
(STRATEGIC PLAN NO. NOT APPLICABLE)
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on 1" Reading
❑ Ordinance on 2 "d Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
On March 15, 2016, the City Council approved an amendment to the Mater Dei Development
Agreement. Mater Dei independently submitted an Appendix to be included for consideration at
that evening's scheduled Council Meeting. As insufficient notice was given, the City Manager
recommended that the Appendix not be approved due to concerns over the cost of the project,
the potential for an unfunded liability, legal requirements that place a burden on the City, and
increased liability in other areas. The City Council subsequently directed staff to analyze the
Appendix and bring it back to a City Council Meeting in 60 days. Councilmember Reyna
recommended that this request be included in the context of the budget process. Mayor Pro Tern
Sarmiento requested a 60 day period for staff and Mater Dei to provide accurate budget costs.
During the Mater Dei public comment on March 15, 2016, Patrick Murphy, President of Mater
Dei, referenced the 1999 Amendment when the City previously paid for similar types of
improvements as those currently being requested in the Appendix. During the research of the
1999 Amendment, staff was able to identify $550,000 in reimbursements made by the City to
Mater Dei. Staff has not been able to substantiate the source of funding for that expenditure,
although it appears that Gas Tax fund was most likely used.
Mater Dei has subsequently provided a revised project cost of $5 million. This is substantially
higher than originally estimated by Mater Dei (e.g. $2.5 to 3 million). Mater Dei has reduced their
request to a not to exceed amount of $2.5 million. At this time only General Fund dollars would
be available for a private development, such as the one being proposed. Mr. Murphy did indicate
that if the City Council did not approve the funding request associated with Appendix 1, the
school will raise the additional funds necessary to complete the project.
RECOMMENDED ACTION
1. Receive and file the Mater Dei Update; and
2. Consideration of the following options and provide direction accordingly:
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May 17, 2016
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a. Fund the Mater Dei Appendix request via an Amended Development Agreement, in
a not to exceed amount of $2.5 million, through the budget process (requires simple
majority; reduces the City Manager's Proposed Budget by $2.5 million)
b. Fund the Mater Dei Appendix request via an Amended Development Agreement, in
a not to exceed amount of $2.5 million, from the General Fund Reserve. (requires
super majority vote)
c. Consider the Mater Dei funding request in conjunction with other budget priorities
during the FY 16 -17 Budget. There would be no funding commitment; subsequent
budget decision would be done in the context of the budget process included with
other city needs and economic conditions.
d. Do not approve the Mater Dei Appendix request.
DISCUSSION
Mater Dei High School has been located in the City of Santa Ana since 1960. During that time the
City and Mater Dei has worked collaboratively to make Mater Dei a landmark in the community.
At the March 15, 2016 City Council Meeting, the Mayor and City Council approved the Mater Dei
School Parking Structure and School Expansion Project, which amended the existing
Development Agreement. Mater Dei subsequently presented the Mayor and City Council with a
proposed Appendix that would make further changes to the Development Agreement. Staff was
directed to analyze the Appendix. A brief historical reference of the development agreement is
provided below.
1995 Agreement
Development Agreement (NS -2260) approved for Mater Dei H.S. expansion project (25 year
term). Key points of the DA:
• Allowed campus expansion via several parcels on east side of Baker Street
• City to vacate portions of Baker, Stanford and Pomona Streets and Edinger Avenue
• Construction of drainage improvements on Pomona and Stanford Streets by City per
DA Sections 7 and 11
i Dedication of land by Mater Dei to City for certain improvements
1999 First Amendment
First Amendment to Development Agreement (NS -2389)
• Modified permitted uses section (Section 3) to allow parking lot use on additional
parcels
• Modified Special Development Standards section (Section 4) to clarify location of
setbacks, site access, access gates, fences, parking lot lighting, circulation
management plan and graffiti removal.
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Mater Dei
May 17, 2016
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• Modified Non - vested City Laws and Regulations section (Section 6) to allow TSIA
credit for demolition of any existing structure and clarified the timing of the payment of
drainage area fees.
• Modified Dedications and Street Improvements section (Section 7) to require City to
make median changes on Edinger Avenue, City prepares traffic analysis for traffic
signal, and identified phasing of off -site improvements.
• Modified Street vacations section (Section 11) to reduce timeline for City to complete
various improvements and require City to install street lights.
• Added Reimbursement section (Section 11.5)
• Added Exhibits section (Section 22)
• Added Hold Harmless section (Section 23)
2016 Second Amendment
Mater Dei High School is proposing to expand its campus and construct a new three - level, 990 -
space parking structure and a 30,820 square -foot, two -story academic building with 32
classrooms on the school campus. With the addition of the classroom building and parking
structure projects, the campus will ultimately contain a total of 267,146 square feet of building
area and 1,396 on -site parking spaces. To accommodate the parking structure, Mater Dei is in
the process of acquiring 19 single - family lots at the southeast section of the site. The purchase of
the lots, in conjunction with the proposed street vacations and utility relocations will add an
additional four acres to the school site.
In an effort to simplify the development agreement, staff has consolidated and updated the
original agreement (1995), the first amendment (1999), and the adopted (2016) second
amendment into a single document.
Mater Dei Appendix Request
Mater Dei submitted their requests for additional items to the Development Agreement via a
proposed Appendix. This appendix includes among other items, requests for the City to perform
the following:
• Street Vacation, Title Work, Mapping, and Processing of the street right of way (Section
11)
• Construction and Engineering work associated with the street removal /realignment
• Street removals and construction (Section 7.b.ii)
• Drainage construction (Section 7.b.iii)
• City Utility, sewer and water, relocation (Section 7.b.ii)
• Third Party utility relocation (Section 7.b.ii)
• Left -turn signal timing on Monarch Way and Edinger (Section 7.b.v)
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Staff Review
Staff from the Public Works Agency, City Attorney's Office and the City Manager's Office
conducted an analysis of Appendix 1 as presented. Should the City Council desire to move
forward with any or all of the requests, staff would recommend an amendment to the
Development Agreement rather than an appendix. This would provide clarity and protect against
potential inconsistencies between the Development Agreement and the Appendix.
The language in section 11(a) is not advisable because it would likely require the City to expedite
construction, which could increase the overall cost of the project. Additionally, it would leave the
City open to liability if it was not possible to complete the work in the time frame proposed.
Section 11.5 is also not advisable because it would give Mater Dei complete control over the
work, which could lead to increased costs for the City. In such a reimbursement arrangement,
Mater Dei could take over the work, use any contractor they chose, and require the City pay the
cost without a predefined limit. This would become an unfunded liability to the City. The City
Manager requests a super majority vote as the future funds would most likely be reserve funds.
Should the Mayor and City Council decide to move forward, staff would recommend that a
predetermined amount be identified and that the developer be responsible for completing the
work as was previously done with the 1999 Amendment.
The City has fulfilled its promise to the original agreement, the first amendment, and throughout
the development of the second amendment. Staff did not promise or agree to any of the requests
within the Mater Dei Appendix request. During the Site Plan Review phase of the project, the
concept of City financial participation was not raised, and notes were added to the site plan
specifying that all improvements needed for the project were to be constructed at the sole
expense of the developer.
STRATEGIC PLAN ALIGNMENT
Not applicable.
FISCAL IMPACT
The fiscal impact will vary depending on the Mayor and City Council's direction. Below are
potential fiscal impacts for the three options presented as part of the recommended options.
a. Fund the Mater Dei Appendix request via an Amended Development Agreement, in a not
to exceed amount of $2.5 million, through the budget process (requires simple majority;
reduces the City Manager's Proposed Budget)
• This action would require the City Manager to adjust the General Fund Proposed
Budget by the total not to exceed amount. In this case, programs, services, and
staffing would be impacted by a direct amount allocated to this Development
Agreement. An exact proposal would be included as part of the City Manager's
Proposed Budget for City Council consideration and approval. This would be the
first time in three years that programs would be reduced or cut.
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Mater Dei
May 17, 2016
Page 5
• However the City of Santa Ana has identified significant needs in the areas of Public
Safety ($3.3 million) and Economic Development ($3 million), and the City has not
yet added back Police Officers reduced during the recession.
b. Fund the Mater Dei Appendix request via an Amended Development Agreement, in a not
to exceed amount of $2.5 million, from the General Fund Reserve. (requires super majority
vote)
• This action would require a reduction to the City's General Fund Reserve balance.
Currently the City has a General Fund balance target of 20 %. Although staff would
recommend assigning the corresponding amount in the reserve, the General Fund
Reserve would be reduced. In order to continue to meet the General Fund Reserve
target, staff would need to reduce and /or cut programs and services. The reserve
could be left at the lower amount, however it is not recommended as the recent AA
general credit rating by Standard & Poors included the 20% reserve level. The City
Council would need to authorize such a reduction of the General Fund Reserve
Fund.
c. Consider the Mater Dei funding request in conjunction with other budget priorities during
the FY 16 -17 Budget. There would be no funding commitment; subsequent budget
decisions should be done in the context of the budget process included with other City
needs.
• There would be no immediate fiscal impact by this action. Funding would be
evaluated at a future date.
• While this option does not provide certainity to Mater Dei, the option allows the City
of Santa Ana to make a funding decision during the budget process. This is
especially significant in that FY 16 -17 is a year involving new labor and
management negotiations.
Staff recommends option C. This provides the City with the ability to make funding considerations
in the context of priorities throughout the City.
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May 17, 2016
City Council Meeting
Correspondence
Date of Sender /Representative
1, 3/14/2016 Patrick Murphy, President Mater Dei High School
I:Mgendas12016 AgendaslExhlbbs 2016
* Matter agenized at the
request of City Council;
March 15, 2016 by a vote
of 7 -0.
Mitre - Ramirez, Norma
From: Murphy, Patrick <PMurphy @materdei.org>
Sent: Monday, March 14, 2016 11:10 AM
To: Huizar, Maria
Subject: Mater Del High School Commitment to the Santa Ana Community Document
Attachments: Mater Dei High School City Council 3.15.16[1].pdf
Maria,
I am sending you this document as Santa Ana City Clerk to ask you to include it in the packet for each City
Council member in preparation for the presentation by City Staff on the Mater Dei High School redevelopment
project, which is on the agenda for the March 15, 2016 Santa Ana City Council Meeting. In addition, in a few
moments, I will be sending you an additional file entitled "Appendix #1 to the 2nd Amended and Restated
Development Agreement" that I would also ask be included in the packet for each City Council member for the
purposes of this agenda item at tomorrow night's City Council Meeting. Thank you so much Maria.
Patrick Murphy
President
Mater Dei High School
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65B -10
Ift 65 MATER DEI
1950 -201115 HIGH SCHOOL
Mater Dei High School's Commitment to the Santa Ana Community
20% of MD enrollment is from Santa Ana ( a significant portion of the $5 million
commitment to Need Based Financial Aid is granted to Santa Ana students /families )
Mater Dei has a longtime commitment to Community Service and helping those in need.
The 2015 Graduating Class completed over 70,000 hours of volunteer service with a
majority completed in Santa Ana. The following agencies /organizations have been the
recipients:
1. Parishes of Christ Our Savior, St. Joseph, St. Anne,
• MD students assist with religious education, altar service, festivals
2. KidWorks
• MD Girls Soccer has a youth clinic
• Students assist with tutoring
• Beneficiary- MD Annual Christmas Toy Outreach
3. Santa Ana Police Athletic and Activity League
• MD Students assist in various activities and events with youth
4. Santa Ana /Fullerton Armory
• MD Students assist with setup and meals for homeless
5, Boys and Girls Club of Santa Ana
• MD Students assist with after school tutoring and activities
6. Delhi Center
• MD Students assist in the after school Mathletics program
• MD Students assist with music and dance classes
7. Isaiah House
• MD Students assist with meals, visiting the residents, serve meals to homeless and
guests of the house.
8. Santa Ana Pop Warner
• MD students assist youth football and cheer teams
9. VFW (Veterans of Foreign Wars) Hall
• MD Students assist with setup and serving at events
65B -11
10. Discovery Cube of OC
• MD Students volunteer as docents and demonstrators at various events at the
Science center
11. Bowers Museum
• MD Students volunteer at various events and fundraisers for the museum
12. Multiple Health Care /Medical Centers in Santa Ana
13. Santa Ana Family YMCA
• MD Students (teams and clubs) make blankets for the elderly and children in Santa
Ana
14. Big Brothers Big Sisters OC
• MD Students serve as mentors for at risk youth
15, SA Youth Soccer and Baseball
• MD Students assist with snack bar, field and facility prep as well as assistant coach
16. Mercy House
17. Blind Children's Learning Center
18. Assistance League of Santa Ana
19. Think Together
20. Olive Crest
21. Boy Scouts of America
22. Orangewood Children's Foundation
23. Taller San Jose
24. The Wooden Floor
25. Get on the Bus Support Program
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3. Use of MD Facilities by Santa Ana Community
*indicates Santa Ana -based organization
* *indicates open to /serves Santa Ana community
*Catholic Deaf Community
• Hearing Impaired Religious Education Program
WISEPlace Bolt Kettlebell National Championship
• Kettlebell Competition
Junior Olympics Boys Water Polo Tournament
• Youth Water Polo Tournament
Golden Star Soccer - Santa Ana
• Adult Soccer League
* *Diocese of Orange Ministries Celebration
• Diocesan Religious Education Conference
* *Down Syndrome Association of Orange County Halloween Party
• Down Syndrome Community Social Event
*Continental Soccer - Santa Ana
Adult Soccer League
* *BAD Camp Christmas Party
• Disabled Community Social Event
Trinity Bat Company Home Run Challenge
• Baseball Charity Event
United States Catholic Conference of Bishops Spanish Pro -Life & Evangelization Conference
i Religious Education Conference
KAP7 Turbo Cup
• Youth Water Polo Tournament
Masters Track & Field Meet
• Adult Track & Field Meet
* *4- Vertical Football
• Youth Passing League Practices
* *Matt Leinart Foundation Urban Youth Football League
• Low -Soci Economic Communities Football Program
* *Diocesan Youth Conference
High School Religious Education Conference
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* *RAD Camp Coffee House
• Disabled Community Social Event
4. Potential Future Use of MD Performing Arts Center by Santa Ana
Community Groups
• St. Joseph Ballet
• The Wooden Floor
• Parishes and Schools of Christ Our Savior, St. Joseph, St. Anne
• Pacific Chorale
• Arts Orange County
• KidWorks
• Orange County Children's Therapeutic Arts Center
• Arts and Culture Commission of Santa Ana ( as liaison )
• Catholic Charities
• Immaculate Heart of Mary Parish
• Boys & Girls Club
65B -14
APPENDIX #1 TO SECOND AMENDED AND RESTATED DEVELOPMENT
AGREEMENT
This Appendix supplements that certain Second Amended and Restated Development Agreement
(the "Second Amendment ") dated as of 2016, by and between the CITY OF
SANTA ANA ( "City ") and THE DIOCESE OF ORANGE EDUCATION AND WELFARE
CORPORATION ( "Developer "). City and Developer hereby supplement the Second
Amendment as follows:
A. The second sentence of Section 1 of the Second Amendment is hereby deleted in
its entirety and replaced with the following new sentence: "This Second Amendment pertains
initially to the Original Parcel and Additional Parcel Nos. 1, 2, and 3, and shall apply to
Additional Parcel No. 4 at such time as Developer acquires title to all of the parcels comprising
Additional Parcel No. 4 and all necessary Street Vacations, Lot Mergers and /or Tract Maps,
Zoning Amendment Applications and General Plan Amendments, as applicable, are processed
by City in order to match the zoning on the Original Parcel with the Additional Parcels."
B. Sections 7 and I 1 of the Second Amendment are hereby deleted in their entirety
and replaced with the following new Sections 7, 11 and 11.5:
Dedications, Street Improvements, Parking Structure and Performing Arts Center.
(a) Developer shall dedicate a 34 -foot wide drainage and utility easement with
landscaping as shown on Exhibit 7 attached hereto and incorporated herein by this reference.
Developer, at a minimum, shall be responsible for replacement of the paving and improvements
within the Pedestrian Plaza as identified on that certain "Master Plan Update" for Mater Dei High
School prepared by The Austin Company (Project No. 08- 10167D01), including the Preliminary
Grading & Drainage Plan, the Preliminary Wet Utility Plan, the Preliminary Dry Utility Plan, the
Modular Wetland Systems detail and the Parking Space & Area Summaries, all prepared under
The Austin Company's Project No. 08- 10167DOI (collectively, the "Site and Development
Plan "). The dedications and easements described in this subsection 7(a) shall be made by
Developer prior to the issuance of any building permit for any new building to be constructed on
the Property.
The installation of improvements for the parking lot area, including, but not limited to,
the storm drains, curb and gutters, pavement, street lights, parkway culverts where necessary as
determined by the Public Works Agency, sidewalks, and drive approaches shall be the
responsibility of City, in accordance with Sections 11 and 11.5 of this Second Amendment.
Developer is authorized, at Developer's option, to construct the public improvements on behalf
of City and then be reimbursed by City for the costs incurred by Developer, pursuant to Section
11.5 of this Second Amendment.
City shall bear the cost of the preparation of a traffic analysis for the proposed traffic
signal at the main entrance to the school on Edinger Avenue at Balser Street. City shall also bear
any and all costs related to the design and installation of said traffic signal.
Developer agrees to make the dedication referenced in subsection 7(a), above, without
payment from City in consideration of receiving City's approval of this Second Amendment.
SMM:475724784.2 659'1 5
No other dedications of land will be required by City in connection with the Development
during the Term. However, nothing herein shall be construed to limit City's ability to acquire
any portion of the Property, or rights therein, through the exercise of its power of eminent
domain.
(b) The parking structure, the new Performing Arts Center and other on -site
building improvements are to be completed by Developer at Developer's sole cost and expense
as generally described in the Site and Development Plan. Those off -site improvements described
in subsections 7(b)(i) and (iv) below shall also be completed by Developer at its sole cost and
expense. Those off -site improvements described in subsections 7(b)(ii), (iii) and (v) below shall
be completed by City at City's sole cost and expense:
(i) Installation of a traffic signal and crosswalk at Bristol Street and
St. Andrew Place, phis a dedicated right -turn lane along westbound
St. Andrew Place at Bristol Street;
(ii) Completion of abandonment and associated utility relocations for
Baker Street, Berkeley Street and Occidental Street, keeping an
opening between Berkeley Street and Occidental Street as a public
alley;
(iii) Completion of drainage improvements and storm drains;
(iv) Modification of a four -way stop at the intersection of St. Andrew
Place and Baker Street; and
(v) Updated left -turn signal timing at the Edinger Avenue and
Monarch Way intersection for entry into the Mater Dei campus.
11. Street Vacations, Utility Relocations and Related Improvement Work.
City shall, at its sole cost and expense, vacate and abandon City's right of way easements
over Balser Street, Berkeley Street, Occidental Street and St. Andrew Place, to the extent they are
included on or about Additional Parcel No. 4, as shown in Exhibit 8 attached hereto and
incorporated herein by this reference. City shall, at its sole cost and expense, remove street
improvements from all vacated streets and construct public drainage improvements in the area of
the drainage easement granted to City by Developer pursuant to Section 7 hereof, in accordance
with the following terms and conditions:
(a) The street removal and drainage improvement work described above shall
all be completed by City prior to the last of the following dates:
(i) The date occurring one (1) year after the date on which City
receives written notice from Developer that Developer has
acquired title to all the Additional Parcels (provided Developer has
in fact acquired such title);
SMAI {:475724784.2 656-16
(ii) The date occurring one (1) year after the date on which City
receives written notice from Developer that Developer has
removed all improvements from Additional Parcel No. 4 (provided
Developer has in fact removed such improvements); and
(iii) The date occurring one (1) year after the date on which Developer
dedicates the drainage easement specified in subsection 7(a) hereof
to City.
(b) City shall be responsible for the removal and /or relocation of all public
utilities located in the area of the streets which are to be vacated pursuant to this Section 11,
without cost to Developer (other than costs for any new utility connections which may be
necessary).
(c) It is understood and agreed that the drainage improvements to be installed
by Developer in the drainage easement shall be storm drains and surface drainage facilities, or
their equivalent, as depicted in Exhibits 9 and 9A attached hereto and incorporated herein by this
reference, or as otherwise approved by City's Engineering Division.
It is further understood that such surface drainage improvements may not be sufficient to
fully protect other improvements on the Property from stormwater damage during especially
severe storms, and Developer assumes the risk of such damage. Developer may install an
underground piped drainage system within the school property and may connect to any existing
City drainage facility. Once constructed, Developer shall be responsible for maintaining and
cleaning the on -site drainage facilities and shall keep the drainage facilities free and clear of all
impediments to drainage and shall maintain the five -foot strip to the east of the drainage
easement as a landscaped area. Developer shall provide City with a surface drainage easement
for public water flowing across the private parking area.
(d) City shall, at its sole cost and expense, prepare plans for and remove street
improvements from the vacated streets, relocate utilities and construct public drainage
improvements in the area of any drainage easement granted to City by Developer pursuant to
Section 7 of this Second Amendment, in accordance with the following terms and conditions:
(1) The traffic access and circulation, utility service and drainage will
be continuously provided to the parcels within the block adjacent to Additional Parcel
No. 4, acceptable to the Public Works Agency.
(2) Said street removal, utility and drainage improvement work shall
be completed by City within the same time parameters as set forth in Section 11(a),
above.
(3) City shall be responsible for plan preparation, removal and /or
relocation of all public utilities located in the area of the streets that are to be vacated
pursuant to this Section 11, without cost to Developer. If, at the design development
stage, City determines that street lights are required as a result of the termination of
Berkeley Street or Occidental. Street, City shall design and install the street lights within
the context of standard spacing requirements utilized citywide.
SMRH:475724784.2 65E �-l7
(4) Once all required street vacations are completed, the Additional
Parcels shall be merged with the Original Parcel into a single new parcel by means of a
lot consolidation process. Developer shall file, process and record the lot consolidation.
The lot consolidation shall be completed prior to the issuance of building permits.
(5) City shall retain existing utility easements for sewer, water,
drainage and maintenance purposes within the newly consolidated parcel as shown on
Exhibit 7 attached hereto. Developer shall allow City access to all City utility easements
within the former street rights -of -way abandoned for the Project, where necessary as
determined by the Public Works Agency. If Developer denies such access to City, then
Developer shall hold City harmless against damages and all other claims resulting from
the condition of City utilities which City was unable to repair or maintain because of such
lack of access.
(6) It is understood and agreed that the drainage improvements to be
installed by City in the drainage easement shall be storm drains and surface drainage
facilities as depicted in Exhibits 9 and 9A attached hereto and incorporated herein by this
reference, or as approved by the Public Works Agency. City may, at City's sole cost and
expense, install an underground piped drainage system within school property. Once
constructed, Developer shall be responsible for maintaining and cleaning the on -site
drainage facilities and shall keep the drainage facilities free and clear of all impediments
to drainage.
(7) City shall, at City's sole cost and expense, relocate the four utility
poles, guy wires and associated utility lines located between Berkeley Street and
Occidental Street, and between Occidental Street and St. Andrew Place, as shown on
Exhibit 10 attached hereto and incorporated herein by this reference.
11.5 Developer's Reimbursement Option. If Developer determines that City's timeline
for completion of some or all of the off -site improvements to be completed by City pursuant to
this Second Amendment may not result in completion prior to commencement of school
operations, then Developer may, at its option, notify City in writing that Developer has elected to
take over construction of some or all of such off -site improvements, in which case the following
shall apply:
(a) In the event Developer elects to undertake construction of some or
all the off -site improvements pursuant to this Section 11.5, City shall reimburse Developer for all
costs and expenses so incurred by Developer. Developer shall submit progress payment invoices
to City for the actual costs of construction. Payment by City shall be within 30 days after receipt
of each invoice, subject to City accounting procedures. Final payment shall occur after all off -
site improvements being constructed by Developer are completed and accepted by the Executive
Director of the Public Works Agency.
(b) Bidding Requirements.
SMfUI:475724784.2 659-18
Developer shall enter into contracts for the construction of any off -site
improvements which Developer elects to construct. City shall approve the award of any such
contract to the lowest responsible bidder. Developer's bid package shall:
(i) Require use of prevailing wage rates for off -site pubic
improvements;
(ii) Use City approved bid package;
(iii) Employ bidding process in accordance with City procedures per
Santa Ana Municipal Code § 2 -805;
(iv) Require that all change orders for off -site public improvements
shall be approved in writing by the Executive Director of the
Public Works Agency prior to the commencement of work; and
(v) Provide that the bids shall be delivered under seal directly to City.
Alternatively, should City and Developer jointly elect, the off -site public improvements
maybe bid and contracted for using the "management contract method." Should Developer
propose use of the management contract method for such improvements, it shall identify in
writing a proposed management contractor. Upon receipt of this request, the Executive Director
of the Public Works Agency shall review such proposal within three (3) working days. Should
the parties choose to utilize the management contract method for construction of the off -site
public improvements, the bidding requirements, as set forth above, shall be modified so that
separate bids shall be submitted to City for each trade. The management contractor shall
perform none of the construction itself unless it is awarded a separate contract therefore as the
lowest responsible bidder in subsequent bidding under the procedures set forth above.
(c) Construction Requirements
Developer shall carry out the design, construction and the operation of the off -site
improvements in substantial conformity with all applicable laws, ordinances, statutes, codes,
rules, regulations, orders and decrees of the United States, the State of California, the County of
Orange, the City or any other political subdivision in which the Property is located, and any other
political subdivision, agency, or instrumentality exercising jurisdiction over City, Developer or
the Property, including all applicable federal, state and local occupation, safety and health laws,
rules, regulations and standards, applicable state and labor standards, prevailing wage
requirements, City zoning and development standards, City permit and approvals, building,
plumbing, mechanical and electrical codes, as they apply to the off -site improvements, and all
other provisions of City and its Municipal Code and all applicable disabled and handicap access
requirements, including, without limitation, the Americans with Disability Act, 42 U.S.C. §
12101 et seq., Government Code § 4450 et seq. and the Unruh Civil Rights Act, Civil Code § 51
et seq. (Governmental Requirements). Developer explicitly acknowledges that construction of
the public off -site improvements shall be subject to the requirement that Developer shall pay
"prevailing wage" rates pursuant to Labor Code § 1720 et seq. and that this standard shall
constitute one of the Government Requirements.
SMRH:475724784.2 659-19
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