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HomeMy WebLinkAbout2 - CITY HALL PARKING GARAGEREQUEST FOR COUNCIL/SANTA ANA FINANCING AUTHORITY ACTION CITY COUNCIL MEETING DATE: MARCH 5, 2007 TITLE: CONTRACT AMENDMENTS FOR THE CITY HALL PARKING GARAGE CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1S` Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For ~' CITY MANAGER RECOMMENDED ACTION CONTINUED TO FILE NUMBER 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 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. 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 j ail facility and the preparation of the site for the State 2-1 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 2-2 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) . ~~ Jam s G. Ross Ex cutive Director P blic Works Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency 2-3 RESOLUTION NO. SAFA 2007- 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. In 2005, the City entered into alease/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; Resolution No. SAFA 2007- Page 1 of 3 2-4 H. The Authority will assign its rights under the Site Lease and the Lease Agreement to All Points; It is in the public interest and for the public benefit that the Authority authorize and direct execution of the Site Lease and the Lease Agreement with the City and certain other financing documents in connection therewith; and J. 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. 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. 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; and D. 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 All Points. Section 3. 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 4. This Resolution shall take effect upon its adoption by the Authority Board. Resolution No. SAFA 2007- Page 2 of 3 2-5 ADOPTED this 5th day of March, 2007. APPROVED AS TO FORM: Joseph W. Fletcher, Authority Counsel AYES: Authority members NOES: Authority members ABSTAIN: Authority members NOT PRESENT: Authority members 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. 2007- to be the original a resolution duly adopted by the Santa Ana Financing Authority on the 5th day of March, 2007. Date: Authority Secretary Resolution No. SAFA 2007- Page 3 of 3 2-6