The URL can be used to link to this page

Home My WebLink About80B - JT PH CITY HALL PARKING GARAGE CITY COUNCIL MEETING DATE: REQUEST FOR COUNCIL ACTION CLERK OF COUNCIL USE ONLY: MARCH 5, 2007 TITLE: APPROVED o As Recommended o As Amended o Ordinance on 151 Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For CONTRACT AMENDMENTS FOR THE CITY HALL PARKING GARAGE Q-AtZ--- CITY MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION CITY COUNCIL ACTION 1. Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute a third amendment to the professional services agreement with Gordon & Williams, Inc. in the amount of $3.36 million for a total contract in the amount of $9.36 million to provide program management services for construction of the parking structure in front of City Hall. 2. Adopt a certain parking respect resolution authorizing and directing the execution of lease financing documents related to construction of the garage, and authorizing and directing certain actions with 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. DISCUSSION On June 20, 2005, the City Council approved a purchase and sale agreement with the State of California for the sale of the property on the northwest corner of Santa Ana Boulevard and Ross Street, for the new Fourth District Court of Appeal. The City agreed to the demolition of the vacant jail facility and the preparation of the site for the State 808-1 Contracts Amendments for The City Hall Parking Garage March 5, 2007 Page 2 funded construction of the courthouse. The City also agreed to construct a 300 space parking structure in front of City Hall. With construction of the new parking structure nearing completion, a review of all pre-architectural design elements relating to the new State Appellate Court and surrounding site was initiated. It was determined that in order to maintain a consistent level of design and provide a welcoming experience for all visitors and Civic Center employees an upgrade to the approximately 50 year infrastructure surrounding the parking structure is required. The proposed improvements would incorporate a redesigned entry into the Civic Center parking area as well as new hardscape, landscaping, and security lighting surrounding the new parking structure. In addition, a new plaza entrance between the parking structure and City Hall would be developed as well as revamping ADA access to the Council Chambers for visitors. Finally, the State's final design provides for additional improvements which includes security fencing; and the County has requested that a new electronic entry system be incorporated within the new entry design. The County has committed to reimbursing the City $885,000 for the new the entry system. In order to fund the additional project costs as well as any escalated material costs, the original lender (All Points Capital) was contacted to evaluate different options. The recommended financing option would supplant the first bond allowance of $5.9 million with a new bond totaling $8.47 million. Since interest rates have increased from the original financing term of 4.71% to 4.95%, All Points Capital has agreed to maintain the favorable terms under the first financing by providing a blended rate of 4.78%. The new rate would reflect the same total payment as if the City would have selected to maintain two distinct bonds. Total annual payments would increase from $475,000 to approximately $680,000 under the new financing terms. It is anticipated that the parking garage will be completed in early March 2007 with the site work completed by June 2007. The State plans to begin construction of the courthouse facility by late summer 2007 and move the court personnel into their new permanent home in the Santa Ana Civic Center by the end of 2008. FISCAL IMPACT Funds for construction of the parking garage site work and preparation of the courthouse development site will be generated from the financing and will be available in the capital projects account for the Civic Center 808-2 Contracts Amendments for The City Hall Parking Garage March 5, 2007 Page 3 Parking Structure Project (account no. 51-012-6621, Project No. 2740)and the Civic Center Improvements Other Than Buildings Fund (account no. 74- 243-6631) . APPROVED AS TO FUNDS AND ACCOUNTS: I f2 L-~ ~~ . ~\ \\~ --\\\'~'::'~J ~~~ Francisco Gutierrez Executive Director Finance & Management Services Agency ,~ . ('fa'; 11 /James G. oss Executive Director Public Works Agency 808-3 RESOLUTION NO. 2007-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council (the "Council") of the City of Santa Ana (the "City") hereby finds, determines and declares as follows: A. 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. In 2005, the City entered into a lease/leaseback transaction with the Authority to finance the Improvements and the City agreed to make lease payments to the Authority with a principal component of $5,970,000 and an interest component calculated at the rate of 4.71 % per annum; C. The Authority assigned its right to receive the lease payments to All Points Public Funding, LLC ("All Points") which advanced the principal component of the lease payments to the City to finance the Improvements; D. The City experienced construction cost increases, utility undergrounding complications and other problems in connection with the Improvements and requires additional funds to complete the Improvements; E. The City approached All Points to finance the remaining amounts required for the Improvements and All Points agreed to do so on substantially the same terms as the original 2005 transaction; F. The City and All Points agreed that the City would prepay the 2005 lease agreement, with no prepayment penalty, and would enter into a new lease/leaseback transaction that would provide for the total amount required to finance the Improvements; G. The City has determined to enter into a new site lease (the "Site Lease") and a new lease agreement (the "Lease Agreement") with the Authority with a total principal component of $8,470,000 and an interest component calculated at the rate of 4.78191 % per annum; 808-4 Resolution No. 2007-_ Page 1 of 3 H. The Authority will assign its rights under the Site Lease and the Lease Agreement to All Points; I. It is in the public interest and for the public benefit that the City authorize and direct execution of the Site Lease and the Lease Agreement with the Authority and certain other financing documents in connection therewith; and J. The documents below specified have been filed with the City and the members of the Council, with the aid of its staff, shall review said documents; Section 2. The below-enumerated documents be and are hereby approved, and the City Manager, the Executive Director of Finance and Management Services, or the designee of any such official, is hereby authorized and directed to execute said documents, with such changes, insertions and omissions as may be approved by such official, and the City of the Council is hereby authorized and directed to attest to such official's signature: A. A termination agreement, by and among the City, the Authority and All Points, terminating all documents relating to the 2005 lease/leaseback transaction; B. 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; C. 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, in a principal amount equal to $8,470,000, with a final payment date of May 1, 2026, and with an interest component of4.78191% per annum; and D. A reimbursement agreement, by and between the City and the Community Redevelopment Agency of the City of Santa Ana (the "Agency"), pursuant to which the Agency will agree to reimburse the City for payments made by the City under the Lease Agreement, to the extent such amounts are available. Section 3. The firm of Northcross Hill & Ach Inc. is hereby retained as financial advisor to the City in connection with the lease financing approve by this resolution. The City Manager is authorized to execute a financial advisory agreement with such firm in such form as shall be approved by the City Attorney. Section 4. The firm of Quint & Thimmig LLP is hereby retained as bond counsel to the City in connection with the lease financing approve by this resolution. The City Manager is authorized to execute a financial advisory agreement with such firm in such form as shall be approved by the City Attorney. 808-5 Resolution No. 2007-_ Page 2 of 3 Section 5. The City Manager, the Executive Director of Finance and Management, the City of the Council and all other appropriate officials of the City 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 financing herein authorized. Section 6. This Resolution shall take effect upon its adoption by this Council. ADOPTED this 5th day of March, 2007. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, , Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2007-_ to be the original resolution adopted by the City Council of the City of Santa Ana on March 5, 2007. Date: Clerk of the Council City of Santa Ana Resolution No. 2007- Page 3 of 3 808-6