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
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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._____
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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
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pouglao Stdck, P. E.
it cta t:f - Public Works/City Engineer
ccessor Agency of the
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Tustin Community Redevelopment Agency