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HomeMy WebLinkAbout8/2/2000 - STAFF REPORTS (5) DATE: AUGUST 2, 2000 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF REDEVELOPMENT APPROVAL OF RADIO ROAD INFRASTRUCTURE IMPROVEMENTS AS AN AGENCY CAPITAL PROJECT RECOMMENDATION: It is recommended that the Agency approve the infrastructure improvements on Radio Road, in the former Highland Gateway project area, as an Agency capital project, and approve a reimbursement agreement with the City of Palm Springs for the construction of those improvements, to effectuate the Redevelopment Plan for the Highland Gateway Redevelopment Project, now part of Merged Redevelopment Project Area #1. BACKGROUND: In 1998, when Desert Fountain Gas experienced a catastrophic structural fire and began to go through the approval process for their reconstruction, they sought Agency assistance for their project,which is located at the corner of Radio Road and North Indian Canyon Drive in the Highland-Gateway Redevelopment Project Area. There was little the Agency was able to do in the form of direct assistance in their rebuilding project, but did agree to cover the costs of the street improvements on Radio Road that the owners would now be required to construct because of the rebuilding. Had the building not burned down and they had not ever had to rebuild, they would never have been required to construct those improvements; so it was considered a burden over and above replacing the building. The Planning Commission agreed, in their Conditions of Approval on the project, to defer the construction of those street improvements — curb, gutter and sidewalk estimated at$32,000—until the Agency was able to construct those improvements. That phase of the Radio Road improvement was recently adopted by the Agency in the 2000-01 budget. In discussing the projectwith Planning and Engineering, however,they identified the more immediate need on Radio Road to be an unpaved section of the road just west of Anza. The estimated cost of constructing those improvements was $61,000. Agency staff instructed the City Engineer to proceed with the design and bidding of those Radio Road improvements in the Fall of 1999 — constructing the unpaved section. Funds were available in the project area's Commercial Rehab Program account in the amount of $65,000. Those funds were transferred into a new line item for Radio Road improvements. In order to achieve efficiencies (and therefore cost savings), the City Engineer bid the project with two other street improvement projects: Cerritos Road and Hermosa Drive (Bid 99-20). The strategy paid off—the low bidder on the Radio Road portion of the project was approximately $39,000, significantly less than estimated. Nevertheless, in orderfor the Agency to pay forthe improvements as contemplated, either separate agreements with the contractor(one for Cerritos and Hermosa with the City, the other for Radio with the Agency) would need to be drafted and executed, or the City and Agency need to make findings that the Agency's construction of those improvements is appropriate and the Agency and City would enter a reimbursement agreement for that portion of the contract. Since separate contracts would necessitate two sets of insurance certificates and two separate sets of bonds (performance bonds, labor bonds, etc.), not to mention the legal cost of drafting two agreements, much of the savings to the three projects would be eliminated with separate agreements. These additional costs were not specified in c " the bid, either, which would mean that they would need to be negotiated with the contractor and added to the contracts. The Redevelopment Plan for the Project Area states that the Agency is "authorized to install and construct, or to cause to be installed and constructed,within or without the Project Area, for itself or for any public body or entity, for the benefit of the Project Area, public improvements and public utilities, including, but not limited to, the following: (1) over and underpasses; (2) sewers; (3) natural gas distribution systems; (4)water distribution systems; (5) parks, plazas and pedestrian paths; (6) playgrounds; (7) storm drains and related facilities; (8) parking facilities; (9) landscaping; and (10) street and alley improvements and bridges." (§324) Furthermore, §324 states that the "Agency may enter into contracts, leases and agreements with the City or other public body pursuant to this Section 324..." Staff therefore recommends the following actions: the Agency adopts the capital project through resolution and approves a Reimbursement Agreementwith the City, and the City Council makes the findings that the construction of those public improvements is appropriate for the Agency to do and also approves the Reimbursement Agreement with the Agency. Radio Road is a General Plan street, so the improvements receive a Class 1 exemption from CEQA, per Section 15301 of the California Code. Funds were already appropriated in 1999-2000 in account 807-8187-65106 and were part of the Agency's continuing appropriations in account 811-8191-65106. The account numbers changed due to the recent project area mergers. JOHN Sj RAYM OND l Directop'of Redevelopment APPROVED: �y-cutive Director ATTACHMENTS: 1. Agency Resolution 2. Reimbursement Agreement 3. City Council Resolution REVIEWED BY DEPT.OF FINANCE REIMBURSEMENT AGREEMENT August_, 2000 Palm Springs, California FOR VALUE RECEIVED, the undersigned ("Agency") hereby promises to reimburse the CITY OF PALM SPRINGS, a public body, corporate and politic ("City"), the Contract Sum paid to Matich Construction of San Bernardino, California, for the costs of constructing certain street improvements constructed on in the City of Palm Springs on Radio Road, between McCarthy and Anza, in the former Highland Gateway Redevelopment Project Area and awarded under City Bid 99-20, in an amount not to exceed Sixty-Five Thousand Dollars ($65,000.00). a. Repayment by Agency. Agency shall pay in full to the City the Contract Sum paid by the City to the Contractor, plus the City costs of bidding, inspection, and project administration, in lawful money of the United States, no later than sixty (60) days after the Notice of Completion has been signed by the City Engineer. No interest is due the City under this Agreement. b. Prepayment. This Agreement sum may be prepaid in whole or in part at any time without penalty, provided the payment is at least equal to the Contract Sum plus the City costs incurred to that date, plus a contingency of ten percent (10%) of the sum of the Contract Sum plus City costs. C. Late Charge. Agency agrees that if it fails to make any payment provided for herein more than ten (10) days after the due date thereof, Agency hereby agrees to pay to City a late charge equal to five percent (5%) of any payment which is not made within ten (10) days after the due date thereof, not as a penalty, but for the purpose of defraying the expenses incident to handling such delinquent payment. Such late charge represents the reasonable estimate of a fair average compensation for the loss that may be sustained by City due to the failure of Agency to make timely payments. Such late charge shall be paid without prejudice to the right of City to collect any other amount provided to be paid or to declare a default under this Agreement. Such late charge shall be payable not later than thirty (30) days after the due date of the delinquent payment. d. Acceleration of Obligation. Upon the failure to make payment due under this Agreement as and when the same becomes due and payable (whether by extension, acceleration or otherwise), or any breach of any other promise or obligation in this Agreement or in any other instrument now or hereafter securing the indebtedness evidenced hereby, then, and in any of such events, City may, at its option, declare this Agreement and the entire indebtedness hereby evidenced, including, without limitation, all accrued interest, to be immediately due and payable and collectible then or thereafter as City may elect, regardless of the date of maturity, and notice of the exercise of said option is hereby expressly waived by Agency. e. Severability. The unenforceability or invalidity of any provision or provisions of this Agreement as to any persons or circumstances shall not render that provision or those provisions unenforceable or invalid as to any other provisions or circumstances, and all provisions hereof, in all AA CAA.Y? other respects, shall remain valid and enforceable. f. Modifications. Neither this Agreement nor any term hereof may be waived, amended, discharged, modified, changed or terminated orally; nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by Agency and City. No delay or omission on the part of City in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Agreement. g. No Waiver by City. No waiver of any breach, default or failure of condition under the terms of this Agreement or the obligation secured thereby shall be implied from any failure of the City to take, or any delay be implied from any failure by the City in taking action with respect to such breach, default or failure from any prior waiver of any similar or unrelated breach, default or failure. h. Governing Law. This Agreement has been executed and delivered by Agency in the State of California and is to be governed and construed in accordance with the laws thereof. IN WITNESS WHEREOF, Agency has executed this Agreement as of the date and year first above written. "Agency" COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a California municipal corporation By: Chairman ATTEST: Assistant Secretary APPROVED AS TO FORM: Agency Counsel Cad q RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA,APPROVING THE CONSTRUCTION OFSTREET IMPROVEMENTS ON RADIO ROAD TO EFFECTUATE THE PURPOSES OF THE REDEVELOPMENT PLAN IN THE HIGHLAND-GATEWAY PROJECT AREA (MERGED PROJECT AREA#1) - - - - - - - - - -- -- - WHEREAS Radio Road is a General Plan street of the City of Palm Springs, but a portion of Radio Road between Anza and McCarthy has never been paved; and WHEREAS constructing improvements on a General Plan Street is a Class 1 exemption from CEQA, per Section 15301 of the California Code; and WHEREAS the City and Redevelopment Agency seek to encourage the improvement of property, construction of new facilities, and retention of jobs within redevelopment areas; and WHEREAS this development will benefit the project area by serving as a catalyst for future developments in the former Highland Gateway Redevelopment Project Area, and WHEREAS the Agency desires to implement the Redevelopment Plan for the Highland- Gateway Redevelopment Project Area, which §324 allows the Agency to construct public improvements and enter into agreements with the City or other public agencies to facilitate those improvements. NOW THEREFORE, the Community Redevelopment Agency of the City of Palm Springs, California, does hereby resolve the following: SECTION 1. The construction of street improvements on Radio Road between McCarthy and Anza, paid for as a capital project of the Community Redevelopment Agency pursuant to §324 of the Redevelopment Plan, is hereby approved. SECTION 2. It is appropriate for improvements to be constructed which will benefit the community as a whole and implement the Redevelopment Plan for that Project Area. SECTION 3. The Reimbursement Agreement between the Community Redevelopment Agency and the City of Palm Springs is hereby approved. SECTION 4. The Executive Director or his designee are authorized to sign all necessary documents in a form approved by the Agency Counsel. ADOPTED this day of , 2000. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Executive Director REVIEWED AND APPROVED: L_