DELHI CENTER - DELHI PARK CONSTRUCTION AND FUNDING AGMT-2000

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Delhi Park Development Agreement and Appropriation Adjustment October 2 , 2000 Page 2 On December 15 , 1998, the California Youth Authority made grant funding available for the construction of youth centers to non-profit organizations . Delhi Center applied for the grant and was successful in securing $2 , 250 , 000 . The California Youth Authority Grant requires the grant recipient to own the building and own or retain a long-term lease on the property. Based on this requirement, the City Council on September 5, 2000 leased park property under the proposed Delhi Community Center to Delhi Center. The term of the lease is for 20 years, with two options for extension (20 year and 10 year) . Since the requirement of the California Youth Authority Grant has changed the terms of the community center ownership, from the City to Delhi Center, a new construction and funding agreement is required between both parties . The agreement will require the City to be the lead agent in the development of Delhi Community Center. Delhi Center will release the $2 , 250 , 000 California Youth Authority Grant to the City during the construction phase . Delhi Center will own, operate and maintain the Community Center and be responsible to provide all furnishing, equipment and supplies for the facility. The City will lease office space from Delhi Center for City staff to provide recreational programs in the park, in addition to having use of the 300 seat multi-purpose room, five times per year for City functions, at no additional cost . City will be responsible for all maintenance and programming of the park site . City Council is also being requested to approve an agreement with Nello Group, Inc . the amount of $4, 922 , 050 , to construct the 27, 000 sq. ft . Community Center improvements . On March 6, 2000 , the City Council awarded a Program Management contract with Nello Group, Inc . to perform pre-construction activities, including revisions to the existing construction documents, performing value engineering and setting a guaranteed maximum price (GMP) to fit within the available budget . The Nello Group has completed the value engineering and is prepared to enter into a guaranteed maximum price agreement . Staff recommends the award of the construction project to the Nello Group per attached Exhibit 1, which includes the project management for the construction phase . The program management in the construction phase includes the Nello Group bidding the construction trade work and constructing the project within the GMP . Bidding will be competitive and will be in accordance to public bidding requirements of the City of Santa Ana. Contractor anticipates beginning construction on November 2000 and completing the project by November 2001 . 25. K• Page 84