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Home My WebLink About20B - AA SAUSD REIMBURSEMENT CONSTRUCTION COSTREQUEST FOR COUNCIL ACTION A A 81611LCiIW6I#171ZICIAT " JANUARY 16, 2018 TITLE: APPROVE AN AGREEMENT AMENDMENT WITH SANTA ANA UNIFIED SCHOOL DISTRICT FOR REIMBURSEMENT OF CONSTRUCTION COST FOR ROOSEVELT/WALKER SITE AND APPROPRIATION ADJUSTMENT TO RECOGNIZE AND APPROPRIATE PRIOR YEAR REVENUE {STRATEGIC PLAN NO. 5, 4A} I CIT OANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an amendment to the reimbursement agreement with Santa Ana Unified School District for the reimbursement of construction costs of the Roosevelt/Walker site improvements by increasing the amount of park acquisition & development funds provided by $400,000, for a total amount of $7,917,509, subject to non -substantive changes approved by the City Manager and City Attorney. 2. Approve an appropriation adjustment for FY 17/18 to recognize $350,000 from prior year fund balance and appropriate $277,420 into Residential Development District 2 and $72,580 into Residential Development District 3. The remaining $50,000 has already been appropriated in the FY 17/18 City Budget. DISCUSSION On June 20, 2011 City Council adopted a resolution authorizing staff to apply for a Proposition 84 "Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act" grant. The City was awarded the grant in the amount of $5 million to develop park improvements at Roosevelt Elementary School. Improvements will'- include a 10,000 sq. ft. Community Center, play equipment area, lighted basketball court, lighted parking lot, security lighting, running track, synthetic turf sports field, sports lighting, decomposed granite running track, fencing, landscaping, and site improvements. The joint use agreement will allow the public to access the center, play equipment area and basketball court during school hours and the running track and field after school hours. The grant requires the City to enter into a 30 year Joint -Use Agreement with the Santa Ana Unified School District (SAUSD). 20B-1 Agreement Amendments with Santa Ana Unified School District for Reimbursement of Construction Costs for Roosevelt/Walker Site January 16, 2018 Page 2 On November 1, 2016 the SAUSD opened bids with a lowest responsive bidder price of $6,300,000. As of December 6, 2016, the reimbursement agreement with SAUSD was for $7,517,509. This amount exceeded the $4,930,000 of Proposition 84 funds available (total amount of Proposition 84 funds is $5,000,000, but $70,000 was set aside for City design/engineering costs) by $2,587,509. The City used Community Development Block Grant funds in the amount of $2,089,261 and Park Acquisition and Development funds in the amount of $498,248 to complete the project. Additional funding is expected to be needed to finish the landscape for the site. City staff is requesting to add $400,000 in Park Acquisition and Development Funds to the contingency to cover the remaining work. Any unused amount will return to the Park Acquisition and Development Fund. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood vitality and livability), Strategy A (Support the design and construction of parks to provide increased open space and opportunities for recreation throughout the city, construct the Roosevelt Walker Park and Community Center, and develop concepts and proposals for the Library Park in the Civic Center and Centennial Santa Ana River Eco -Park). FISCAL IMPACT An appropriation adjustment to recognize prior year fund balances and appropriations to the respective accounts and fiscal year is shown below. Accounting Unit FY 17/18 Revenue District 2-Acq. and Dev.-Prior Year Carry Forward -(no. 31213002-50001) $277,420 District 3-Acq. and Dev.-Prior Year Carry Forward -(no. 31313002-50001) $ 72,580 Expenditure Residential Development District 2 (no. 31213260-69135) $277,420 Residential Development District 3 (no. 31313260-69135) $ 72,580 As mentioned, the remaining $50,000 for the $400,000 increase in contingency has already been appropriated in the FY 17/18 City Budget, but will be reallocated from balances remaining in recently completed projects. 20B-2 Agreement Amendments with Santa Ana Unified School District for Reimbursement of Construction Costs for Roosevelt/Walker Site January 16, 2018 Page 3 Gerardo Mouet Executive Director Parks, Recreation and Community Services Agency Exhibit 1 — Agreement Amendment APPROVED TO FUNDS AND ACCOUNTS: Executive Director S Finance and Management Services Agency r�- SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SANTA ANA AND SANTA ANA UNIFIED SCHOOL DISTRICT REGARDING REIMBURSEMENT OF CONSTRUCTION COSTS FORROOSEVELT-WALKER ELEMENTARY SCHOOL INCORPORATING PROP. 84 GRANT AND CDBG REQUIREMENTS THIS SECOND AMENDMENT to the above -referenced agreement is entered into on January 16, 2018 by and between the City of Santa Ana, a charter city and municipal corporation ("City") and the Santa Ana Unified.School District; a public school district ("District"). RECITALS A. On March 18, 2013, the City entered into Reimbursement Agreement #A-2013-043 ("said Agreement") with the District regarding the reimbursement of design and construction costs for improvement of the multi-purpose sports and recreation facilities (the "Facilities") at Roosevelt -Walker Elementary School (the "Project") in an amount not to exceed $4,930,000. B. The parties subsequently entered into a First Amendment to the Agreement (#A-2016-343) on December 6, 2016 to increase the funding for the Project and amend said Agreement to include the expenditure of CDBG funds in accordance with Title 24, Part 570 of Code of Federal Regulations (24 CFR 570.000), et seq., to pay for design and construction of the Project. Pursuant to the First Amendment, the City agreed to reimburse the District for preconstruction costs including design costs and constructions costs in an amount not to exceed $7,517,509,$2,089,261 in CDBG funds, $223,248 in A&D District 2 available funds and $275,000 in A&D District 3 available funds. C. In accordance with the terms and conditions of the Agreement, the parties wish to further amend the Agreement to increase funding from the City as to A&D Districts 2 and 3. Now, therefore, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Agreement, except those amended in the First Amendment to the Agreement, and except as herein modified, the parties agree as follows: Section 2, subsection b, shall amend the A&D funds to add a total of $400,000.-$277,420 will be added to the funds from the City for A&D District 2 for a total not to exceed amount of $500,668. $122,580 will be added to the A&D District 3 funds from the City for a total not to exceed amount of $397,580. The total reimbursement amount shall be. amended to reflect the $400,000 increase for said Agreement not to exceed amount of $7,917509:00: Except as hereinabove modified in this Second Amendment, the terms of said Agreement and First Amendment shall remain in full force and effect. In the event of any conflict between the terms of this Second Amendment and the terms of said Agreement and First Amendment, the terms of this Second Amendment shall control. ITER IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Agreement on the date and year first written above. ATTEST MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM CITY OF SANTA ANA SONIA R. CARVALHO City Attorney By:,-CLlutLy A. Run" - LAURA A. ROSSINI Senior Assistant City Attorney RECOMMENDED FOR APPROVAL: CITY OF SANTA ANA RAUL GODINEZ II City Manager SANTA ANA UNIFIED SCHOOL DISTRICT: Name: Title: GERARDO MOUET Executive Director, Parks, Recreation and Community Services Agency