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HomeMy WebLinkAbout06 TUSTIN RANCH ROADWAY IMPROVEMENTSAgenda Item 6 AGENDA REPORT Oversight Board of the Successor Agency of the Tustin Community Redevelopment Agency MEETING DATE: MAY 29, 2012 SUBJECT /ACTION: TUSTIN RANCH ROAD ROADWAY IMPROVEMENTS REQUIRED MATCH FUNDS FROM MCAS 2010 TAX ALLOCATION BOND PROCEEDS RECOMMENDATION / PROPOSED ACTION 1. Again, reaffirm the previous award of the construction contract for the Tustin Ranch Road Phase I- Grading and Storm Drain Project (CIP No. 70 -100 and 70206) as an enforceable obligation using the amounts appropriated utilizing MCAS Tustin 2010 Tax Allocation Bond proceeds and the Agency's previous authorization for the Successor Agency to award the construction contract for the Tustin Ranch Road Phase 2 Roadway Improvements (CIP Nos. 70100,70100,70206, 70214 & 70215) to the lowest bidder, R.J. Noble Company, utilizing MCAS Tustin 2010 Tax Allocation Bond proceeds for their intended use, as an enforceable obligation. 2. Approve the Successor Agency acceptance of financial assistance from a variety of private and public funding sources for the Tustin Ranch Road Phase I Project, conditioned upon the provision of matching funds in the amount of $5,983,863 from the MCAS Tustin 2010 Tax Allocation Bond proceeds and approve the Successor Agency's acceptance of financial assistance from the Orange County Transportation Agency, a State grant and from other public and private sources for the Tustin Ranch Road Phase 2 Roadway Project, conditioned upon the provision of matching funds in the amount of $ 8,164,931 from MCAS Tustin 2010 Tax Allocation Bond proceeds, or any additional amount necessary to support any unforeseen change orders during construction beyond a normal 10 percent contingency for the Project. 3. Authorize the Successor Agency to enter into a reimbursement agreement with the City for the Successor Agency's match contribution to the Phase I and Phase 2 Tustin Ranch Road Improvements Project in the amount shown in Recommendation No. 2 above, to be a disbursed from MCAS 2010 Tustin Tax Allocation Bonds to the City of Tustin. BACKGROUND Agenda Report May 29, 2012 Page 2 At the Oversight Board meeting of March 13, 2012, the Oversight Board reaffirmed the former Tustin Community Redevelopment Agency's previous award of the Tustin Ranch Road Project Phase 1 Grading and Storm Drain Work and Authorized the Successor Agency to award the Tustin Ranch Road project Phase 2 Roadway Improvements Construction Contract (CIP Nos. 70100, 70203, 70206, 70214 & 70215). Despite the review period provided for Oversight Board actions, the State of California Department of Finance ( "DoF ") did not request a specific review of this Oversight Board action. However, in its later review of the First Amended Initial ROPS (January-June 2012) and the Second ROPS (July through December 2012), DoF required that the Successor Agency remove the Tustin Ranch Road Phase I and Phase 2 projects from both ROPS. While each ROPS has been amended to reflect DoF's removal request, under protest with all rights reserved, the primary funding source for both phases of the Tustin Ranch Road project, the MCAS 2010 Tax Allocation Bond proceeds ( "MCAS Tustin Bond Proceeds ") were specifically intended to be used for the purposes identified in the Official Statement. Further, it was always the intended purpose that the bond proceeds be used as a match specifically from other public or private sources, with assistance a condition of availability and provision of the matching funds, by the Successor Agntity as successor to the former Tustin Community Redevelopment Agency. Health and Safety Code Section 34180 (e) specifically states that certain successor agency actions shall first be approved by the Oversight Board, including: "(e) Continuing the acceptance of federal or state grants, or other forms of financial assistance from either public or private sources, where assistance is conditioned upon the provision of matching funds, by the successor entity as successor to the former redevelopment agency in an amount greater than 5 percent. " The Tustin Ranch Road Project is a critical Tustin Legacy Backbone Infrastructure Program improvement for which assistance has been conditioned upon the provision of matching funds from the 2010 MCAS Tustin Tax Allocation Bonds with the approval of the project in the City's capital improvement program, and particulary as it relates to the regional grant funds, and the other assistance from public and private sources being that are being applied to the project. More specifically, both the Phase 1 and Phase 2 Projects were conditioned upon the receipt of private developer funds including developer contributions to the Tustin Legacy Backbone Infrastructure Program (the Tustin Legacy Backbone Infrastructure Program, as adopted, required, that 2010 MCAS Tustin Tax Allocation Bonds be available towards the Tustin Legacy Backbone Infrastructure Program improvements, more specifically Tustin Ranch Road as a match to developer contributions to the program), Agenda Report May 29, 2012 Page 3 private utility reimbursements (IRWD), Community Facility District Funds, and other Measure M2 Regional Capacity Program (RCP)- Project O and Proposition 1B State - Local Partnership Program (SLPP) grant funds and OCTA and grant funds. Furthermore, the OCTA and Grant Fund application for the project anticipated the use of the MCAS Bond Proceeds. The local match component for the Successor Agency related to the Tustin Ranch Road Improvements was identified through the various funding programs described above, and adopted with specific appropriations and CIP and other budget authorizations: Public and Private Financial Assistance and Matching Funds Required for Tustin Ranch Project. Funding Sources Phase 1 Phase 2 Developer Funds (Fund 200) $210,466 $3,100,000 City of Irvine 4,500,000 IRWD 2,400,000 M2 /SLLP 9,000,000 MCAS Tustin Bond Proceeds (Fund 561) $5,983,863 8,164,931 CFD 06 -01 (Fund 434 ) $9,481,863 Totals $15,676,192 $27,164,931 Pending resolution of DoF issues related to Tustin Ranch Road on the ROPS, the City anticipates entering into the contract for Phase 2 of the Tustin Ranch Road Project as identified in the Oversight Board's Agenda item #6 dated March 13, 2012 (which is attached). The Successor Agency is requesting that the Oversight Board approve the acceptance of the MCAS 2010 Tustin Tax Allocation Bonds as the matching source for the Successor Agency's contribution to state, and other forms of financial assistance from both public and private sources, which are being used to finance both Phase 1 and 2 of the Tustin Ranch Road Project (in an amount greater than 5% of the project costs). To ensure disbursement of the 2010 MCAS Tustin Tax Allocation Bonds for the required project match and its reimbursement to the City (as the "contracting party" for the Project), the Successor Agency and City will also need to enter into a reimbursement agreement. Health and Safety Code Section 34180 (h) requires Oversight Board approval of a request by the Successor Agency to enter into an agreement with the City. It is intended that the Reimbursement Agreement would identify the total match required of 2010 MCAS Tustin Tax Allocation Bonds proposed to be used for each Phase of the Tustin Ranch Road Roadway Improvements. Agenda Report May 29, 2012 Page 4 Staff will be available to respond to any questions on this matter that the Oversight Board may have. I o Christine Shingletory Assistant ExecutivpArector Attachment 1: Oversight Boai x 41 V Ll Do�uqlad 0. Stack, P.E. P ' \A I ub�yc �6rks Director/City Engineer Agenda Item No. 6 dated March 13, 2012 Attachment 1 Agenda Item -___6._____ ri.. J AGENDA REPORT Oversight Board of the Successor Agency of the Tustin Community Redevelopment Agency MEETING DATE: MARCH 13, 2012 SUBJECT /ACTION: OVERSIGHT BOARD REAFFIRMATION OF TUSTIN COMMUNITY REDEVELOPMENT AGENCY'S PREVIOUS AWARD OF THE TUSTIN RANCH ROAD PROJECT PHASE I GRADING AND STORM DRAIN WORK AND AUTHORIZATION FOR SUCCESSOR AGENCY TO AWARD THE TUSTIN RANCH ROAD PHASE 2 ROADWAY IMPROVEMENTS CONSTRUCTION CONTRACT (CIP NOS. 70100, 70204, 70206, 70214 & 70215) RECOMMENDATION / PROPOSED ACTION 1. Reaffirm the Agency's previous July 19, 2011 award for the construction contract for Tustin Ranch Road Grading and Storm Drain Project (CIP No. 70100 and 70206) pursuant to the adopted Enforceable Obligations Schedule (EOPS) and draft Recognized Obligation Schedule (ROPS) utilizing MCAS Tustin 2010 Tax Allocation Bond Proceeds for their intended use. 2. Authorize the Successor Agency to award the construction contract for the Tustin Ranch Road Phase 2 Roadway Improvements (CIP Nos. 70100, 70204, 70206, 70214, & 70215) from Walnut Avenue to Warner Avenue to the lowest responsive /responsible bidder, R.J. Noble Company, pursuant to the adopted Recognized Obligation Payment Schedule (ROPS) utilizing MCAS 2010 Tax Allocation Bond Proceeds for their intended use. (Note that the above actions by the Oversight Board (Board) shall not become effective for three business days, pending any request for review by the California Department of Finance (DoF). If DoF requests review of this Board action, it shall have 10 days from the date of its request to approve the Board action or return it to the Board for reconsideration and the action, if subject to review by DoF, shall not be effective until approved by DoF). BACKGROUND On August 2, 2011, the City Council and the Tustin Community Redevelopment Agency awarded the construction contract for the Tustin Ranch Road Phase 1 Grading and Agenda Report March 13, 2012 Page 3 specialized nature of construction and the complexity of scheduling required for construction, including the deep IRWD underground utility improvements in the vicinity of ongoing Navy groundwater clean-up operations near the southerly Navy Hangar and the elevated bridge crossing over Edinger Avenue, SCRRA railroad tracks, and the Santa Ana/Santa Fe Channel. On August 25, 2011, the City received submittals under the pre-qualification process from twelve general contractors. Subsequently, on October 4, 2011, ten (10) general contractors were approved by the City and the Agency as qualified bidders for Phase 2. Again, Phase 2 of this project involves construction of the remaining underground utility work, sound walls, and street and landscape improvements, including the Edinger Avenue /Railroad /Flood Control Channel bridge overcrossing. Five (5) formal bids were received from the pre-qualified list of potential bidders and were publicly opened on February 28, 2012 and reviewed by the Public Works Department. These five bids are summarized below in order of least to highest dollar amount: • R.J. Noble Company ................................................... $ 22,649,304.73 • Griffith Company ........................................................ $ 22,654,500.00 • C.C. Myers, Inc ........................... ............................... $ 23,707,949.30 • Flatiron West .............................................................. $ 23,991,560.00 • Shawnan .................................................................... $ 24,544,387.80 It is recommended that the Oversight Board authorize the Successor Agency to award the construction contract for the Tustin Ranch Road Phase 2 Roadway Improvements Construction Project (CIP Nos. 70100, 70204, 70206, 70214, & 70215) from Walnut Avenue to Warner Avenue to the lowest responsive/responsible bidder, R.J. Noble Company, in the amount of $22,649,304.73 and use, among other funds, MCAS 2010 Tax Allocation Bond Proceeds intended for such use. — Christine A. Shingi n Assistant ExecutivrDuirector Successor Agency of the Tustin Community Redevelopment Agency I pouglao Stdck, P. E. it cta t:f - Public Works/City Engineer ccessor Agency of the S' Tustin Community Redevelopment Agency