HomeMy WebLinkAbout091806 Approval Prog Mgmt Agmt SA and Grant ContractorsREQUEST FOR COUNCIL/
AGENCY ACTION
MEETING DATE:
SEPTEMBER 18, 2006
TITLE:
APPROVAL OF PROGRAM MANAGEMENT
AGREEMENT FOR CITY PROPERTY
RENOVATIONS BETWEEN THE CITY
OF SANTA ANA AND GRANT GENERAL
CONTRACTORS
CITY MANAGER EXECUTIVE '(RECTOR
RECOMMENDED ACTION
CITY COUNCIL ACTION
CLERK OF COUNCIL USE ONLY:
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❑ As Amended
❑ Ordinance on 1 st Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Direct the City Attorney to prepare and authorize the City Manager
and the Clerk of the Council to execute a Program Management
Agreement for Santa Ana Auto Mall Property Renovations with Grant
General Contractors in an amount not to exceed $260,000.
2. Approve a Funding Analysis with a total estimated construction cost
of $314,000.
3. Direct the City Attorney to prepare and authorize the City Manager
and the Clerk of the Council to execute a Cooperative Agreement
between the City of Santa Ana and the Community Redevelopment
Agency for Agency funding of these public improvements.
COMMUNITY REDEVELOPMENT AGENCY ACTION
Direct the Agency General Counsel to prepare and authorize the Executive
Director to execute a Cooperative Agreement between the City of Santa
Ana and the Community Redevelopment Agency for funding of these public
improvements.
4 -1
Approval of Program Management
Agreement for City Property
Renovations Between the City of
Santa Ana and Grant General Contractors
September 18, 2006
Page 2
DISCUSSION
The Santa Ana Auto Mall was originally established by the Community
Redevelopment Agency in 1984 to assist with the retention and expansion
of local auto dealerships. The mall currently has 12 manufacturers
within eight new car dealerships, generating approximately $3.9 million
in annual sales tax revenue for the City. In May 2003, the Agency sold
$20 million in tax allocation bonds for the expansion and enhancement of
the mall. The expansion of the Auto Mall is well underway and includes
the opening of the mall to Edinger Avenue along with various upgrades,
such as new signage and landscaping, which are expected to benefit all
the dealerships. Various improvements in the City's right of way have
also been identified for overall enhancement of the mall. Some of these
improvements consist of removal of the guard shack, new landscaping in
the median island, directional signage, fence replacement and /or re-
painting, and landscape and signage improvements to the Ritchey Street
entrance. Grant Contractors is currently performing the improvements on
the Crevier expansion, which will include (phase II) landscape
improvements along Edinger and construction of a new right turn lane on
Auto Mall Drive for the City.
Due to economy of scale and to ensure coordination of improvements with
least impact to the dealers, it is desirable to utilize this same
contractor for the interior improvements of the mall under a Program
Management Agreement. Grant Contractors is a very experienced and
highly regarded general contractor and was the general contractor for
Crevier BMW's original facility in the Auto Mall. The Program Manager
would provide general administration of the Agreement, manage and
supervise the consultants and design professionals, manage the bidding
of all components of construction for the project. Grant would also
serve as construction manager for this project. The contract will
guarantee the cost of the project and Grant Contractors will assume all
the risks. The projected cost of the project is a not to exceed amount
of $260,000, assuming it runs concurrent with Crevier's phase II
improvements (expected to commence January - March 2007).
4 -2
Approval of Program Management
Agreement for City Property
Renovations Between the City of
Santa Ana and Grant General Contractors
September 18, 2006
Page 3
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the
proposed project is exempt from further review. Categorical Exemption
ER No. 06 -139 will be filed for this report.
FISCAL IMPACT
The Funding Analysis shows a total estimated construction cost of
$314,000 for the project (Exhibit 1). Funds are available in the South
Main Tax Allocation Bond Series 2003A Capital Project account (account
552 - 936 -6631, Project 9257).
APPROVED AS TO FUNDS AND ACCOUNTS:
'-1 ez -
Nancy T. wards �ancisco Gutierrez
Assistant Director �} Executive Director
Community Development Agency Finance and Management Services Agency
SGH /VU /SG /mlr
H: \ACTIONS \2006 CC \JT CC -CRA Grant Contract at Risk Auto Mall 9- 18- 06.doc
4 -3
FUNDING ANALYSIS
AUTO MALL PROPERTY RENOVATIONS
Construction Contract
Additional Inspection & Testing
Contingencies
$260,000
15,000
39,000
TOTAL ESTIMATED CONSTRUCTION COSTS $314,000
Exhibit 1
4 -4