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CITY COUNCIL AGENDA ITEM NO. 5

Meeting Date: November 25, 2003

Subject/Title: Approve a Resolution authorizing the City Manager to execute change orders for installation of cul-de-sacs, a traffic signal and construction management services with The Covello Group for the Sunset Industrial Complex, CIP Project No. 336-3128, in an amount not to exceed $661,697, and authorize the City Manager to execute change orders up to 10% of the contract amounts, and amend the CIP Budget Sheet to reflect these changes for CIP Project No. 336-3128.

Submitted by: Engineering: B. Grewal/H. Sword/P. Eldredge

Approved by: John Stevenson, City Manager

RECOMMENDATION
Approve a Resolution authorizing the City Manager to execute change orders for installation of cul-de-sacs, a traffic signal, and construction management services with The Covello Group for the Sunset Industrial Complex, CIP Project No. 336-3128, in an amount not to exceed $661,697, and authorize the City Manager to execute change orders up to 10% of the contract amounts, and amend the CIP Budget Sheet to reflect these changes for CIP Project No. 336-3128.

PREVIOUS ACTION
On January 12, 1999, City Council authorized the purchase of approximately 40 acres of property located at the northeast corner of Tresch and Sunset Roads.

On February 8, 2000, City Council authorized various consultant contracts to master-plan and prepare environmental documents for approximately 132 acres of city-owned land northeast of Tresch and Sunset Roads to include a 49.2 acre Wastewater Treatment Plant, 2.7 acre Solid Waste Plant, 37.7 Sports Park, 13.3 acre Corporation Yard and a 28.4 acre Industrial Complex.

On November 28, 2000, City Council authorized a consultant contract with McGill Martin Self, Inc. to design and prepare infrastructure improvement plans for the Sunset Industrial Complex.

In September 2001, the Brentwood Redevelopment Agency issued Tax Allocation Bonds (TAB) to refinance existing bonds and to pay for certain redevelopment and public improvement projects. One of the top three projects identified by the Agency included funding the infrastructure improvements at the Sunset Industrial Complex with TAB proceeds.

On June 4, 2002, the Planning Commission certified the Environmental Impact Report for the Sunset Industrial Complex, and on June 6, 2002 the Notice of Determination was filed with the County.

On June 25, 2002, the City Council approved a contract for Construction Management services and professional services with the Covello Group, Inc. for the Sunset Industrial Complex, CIP Project No. 336-3128.

On July 23, 2002, the City Council adopted Ordinance No. 710 approving the PD Zoning for Sunset Industrial Complex, and also awarded the construction contract for the Sunset Industrial Complex Improvements Project, CIP Project No. 336-3128, to Teichert Construction.

On August 13, 2002, the City Council and Redevelopment Agency approved a Reimbursement Agreement wherein the Agency would loan $3,000,000 to the City for infrastructure improvements at Sunset Industrial Complex, CIP Project No. 336-3128.

On November 26, 2002, the City Council approved a sales strategy for property located at the Sunset Industrial Complex and adopted criteria for the selection of successful candidates to purchase the subject property.

On September 23, 2003, the City Council authorized the City Manager to execute a professional services agreement with Carlson Barbee & Gibson, Inc. to prepare a Survey, Tentative Map, Final Map and related work for the Sunset Industrial Complex, CIP Project No. 336-3128 and amend the CIP Budget Sheet.

On October 28, 2003, the City Council approved the Sunset Industrial Complex sales strategy criteria ranking and preliminary lot layout, which included the cul-de-sac site plan.

BACKGROUND
The City purchased a 40-acre parcel off Sunset Road in 1999 for the expansion of the adjacent sports complex by 16± acres, and to implement an economic development strategy by zoning the remaining acres for medium industrial land use in the 2001 General Plan update. The City intends to sell parcels within the Sunset Industrial Complex to end-users. The sale revenues to the City will then be used to reimburse the City for its cost of the land, planning, engineering and a portion of the infrastructure improvements. The sales revenues will also reimburse the Redevelopment Agency for paying a portion of the cost of improvements. Therefore, both the City and the Agency expect to receive full reimbursement for their out-of-pocket costs associated with developing the Sunset Industrial Complex as parcels are sold. Any excess receipts from the proceeds of the sales beyond the actual costs shall be shared between the City and Agency in amounts equitable to their contributions.

The project construction improvements are presently 95% complete. Requests for proposals (RFPs), following Council-approved guidelines to purchase property in the Complex, were distributed to interested buyers in late spring 2003. Responses to our RFPs indicated a need for more industrial-zoned property than what is available at Sunset Industrial Complex. Over 28 acres were requested, while Sunset Industrial Complex has only 21.7 acres to sell. To better utilize the land use and accommodate the majority of the requests, a site plan was prepared that included cul-de-sac configurations. This provided the City an opportunity to accommodate as many buyers as possible within the Sunset Industrial Complex, while also configuring 1.0 acre parcels in a more developable manner. Rather than long, narrow 1.0 acre parcels, the cul-de-sacs provide a suitable geometry for truck traffic patterns and efficient site development.

A traffic signal at the intersection of Sunset Road and Elkins Way has always been planned. However, the installation of the traffic signal was intentionally delayed until such time when Garin Parkway was extended to Sunset Road, meeting the entrance of Sunset Industrial Complex. Plans have since been amended to provide for Garin Parkway to extend to the entrance of Sunset Sports Park. Consequently, engineering staff proposes to install the traffic signal at the intersection of Sunset Road and Elkins Way at this time, since Garin Parkway will no longer extend into the Sunset Industrial Complex.
The submitted bid from Teichert Construction for the construction of the two cul-de-sacs and installation of the traffic signal and the associated construction management costs plus contingencies for each is $727,867.

The existing Reimbursement Agreement of August 13, 2002, between the Brentwood Redevelopment Agency and the City of Brentwood evidences the Agency’s contribution of $3,000,000 from its Tax Allocation Bond (TAB) proceeds to this Capital Improvement Project to fund a portion of the public improvement costs, and evidences the City’s reimbursement back to the Agency as parcels are sold. Later in this evening’s agenda, Staff will recommend that Council approve an amendment to the Reimbursement Agreement for an additional $727,867 to fund the construction of two cul-de-sacs, including but not limited to, sidewalk, curb and gutter, landscaping and the installation of the traffic signal at the intersection of Sunset Road and Elkins Way.

Staff has investigated other financing options for the improvements at Sunset Industrial Complex. However, each alternative was eliminated for various restrictive reasons. In addition, there is a lack of sufficient funds in the City’s Capital Improvement Budget to fund these improvements. It was concluded that no other reasonable means of financing such improvements are available to the City, other than from the Redevelopment Agency.

FISCAL IMPACT
The proposed change order in the amount of $727,867 will be funded by a loan from the Redevelopment Agency.

The Sunset Industrial Complex, CIP Project No. 336-3128, has served as an umbrella project that is providing infrastructure benefits to the Wastewater Treatment, Solid Waste and Water Enterprises, as well as the Corporation Yard, Sports Park and Road Fee Account. Funding for the project has been provided by internal distributions from these accounts, as well as a loan from the Redevelopment Agency. Permanent funding for the project will be from a final internal distribution from these accounts, as determined by the Finance Director and the City Engineer, as well as the proceeds from the sale of the real property in the Sunset Industrial Complex.

The accounting for the project has been intricate due to the number of funding entities. It has always been the bookkeeping intention to keep the entire project costs in one CIP project and then account for the financial distribution in a final reconciliation as determined by the Finance Director and the City Engineer. The following amended CIP budget worksheet and budget reflects all the land and construction costs, as well as the $661,697 additional infrastructure improvements referenced in this staff report and $66,170 in contingency’s for a total of $727,867.

9/23/2003 Proposed 11/25/03
Amended Amendment Amended
CIP Budget CIP Budget

Legal 30,000 30,000
Design / Eng. 1,730,460 1,730,460
Construction 3,475,774 639,942 4,115,716
Project Mngmt 30,000 87,925 117,925
Land / ROW 1,644,623 1,644,623
Total $6,910,857 $727,867 $7,638,724

The proposed amendment is comprised of $581,765 for the cul-de-sacs and the traffic signal installation and $79,932 for the additional construction support, inspections and materials testing plus a 10% contingency for each. The above amends the CIP budget sheet accordingly, provided Council decides to amend this contract.

The proportionate share of this $7.6 million project attributable to the Sunset Industrial Complex is $4.3 million. Sales of $5.50 per square foot to third-party end users will result in excess receipts over expenses of approximately $640,000, to be shared between the City and Agency as determined by their capital contribution as described in the Amended Reimbursement Agreement, which will be taken before the Agency this evening.

Attachments:
Resolution
CIP Budget Sheet
Site Map

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDERS FOR INSTALLATION OF CUL-DE-SACS, A TRAFFIC SIGNAL AND CONSTRUCTION MANAGEMENT SERVICES WITH THE COVELLO GROUP FOR THE SUNSET INDUSTRIAL COMPLEX, CIP PROJECT NO. 336-3128, IN AN AMOUNT NOT TO EXCEED $661,697, AND AUTHORIZE THE CITY MANAGER TO EXECUTE CHANGE ORDERS UP TO 10% OF THE CONTRACT AMOUNTS, AND AMEND THE CIP BUDGET SHEET TO REFLECT THESE CHANGES FOR CIP PROJECT NO. 336-3128.

WHEREAS, on January 12, 1999, City Council authorized the purchase of approximately 40 acres of property located at the northeast corner of Tresch and Sunset Roads; and

WHEREAS, on February 8, 2000, City Council authorized various consultant contracts to master-plan and prepare environmental documents for approximately 132 acres of city-owned land northeast of Tresch and Sunset Roads to include a 49.2 acre Wastewater Treatment Plant, 2.7 acre Solid Waste Plant, 37.7 Sports Park, 13.3 acre Corporation Yard and a 28.4 acre Industrial Complex; and

WHEREAS, on November 28, 2000, City Council authorized a consultant contract with McGill Martin Self to design and prepare infrastructure improvement plans for the Sunset Industrial Complex; and

WHEREAS, in September 2001, the Brentwood Redevelopment Agency issued Tax Allocation Bonds (TAB) to refinance existing bonds and to pay for certain redevelopment and public improvement projects. One of the top three projects identified by the Agency included funding the infrastructure improvements at the Sunset Industrial Complex with TAB proceeds.

WHEREAS, on June 4, 2002, the Planning Commission certified the Environmental Impact Report for the Sunset Industrial Complex, and on June 6, 2002 the Notice of Determination was filed with the County.

WHEREAS, on July 23, 2002, the City Council adopted Ordinance No. 710 approving the PD Zoning for Sunset Industrial Complex, and also awarded the construction contract for the Sunset Industrial Complex Improvements Project, CIP Project No. 336-3128, to Teichert Construction; and

WHEREAS, on August 13, 2002, the City Council and Redevelopment Agency approved a Reimbursement Agreement wherein the Agency would loan $3,000,000 to the City for infrastructure improvements at Sunset Industrial Complex, CIP Project No. 336-3128; and

WHEREAS, on November 26, 2002, the City Council approved a sales strategy for property located at the Sunset Industrial Complex and adopted criteria for the selection of successful candidates to purchase the subject property; and

WHEREAS, on September 23, 2003, the City Council authorized the City Manager to execute a professional services agreement with Carlson Barbee & Gibson, Inc. to prepare a Survey, Tentative Map, Final Map and related work for the Sunset Industrial Complex, CIP Project No. 336-3128 and amend the CIP Budget Sheet; and

WHEREAS, requests for proposals (RFPs), following Council-approved guidelines, to purchase property in the Complex were distributed to interested buyers in late spring 2003. Responses to our RFPs indicated a need for more industrial-zoned property than what is available at Sunset Industrial Complex. Over 28 acres were requested, while Sunset Industrial Complex has only 21.7 acres to sell; and

WHEREAS, on October 28, 2003, the City Council approved the Sunset Industrial Complex sales strategy criteria ranking and preliminary lot layout which included the cul-de-sac site plan; and

WHEREAS, the submitted bid from Teichert Construction for the construction of the two cul-de-sacs and installation of the traffic signal and the associated construction management costs plus contingencies for each is $727,867.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Brentwood that the City Manager be authorized to execute change orders for installation of cul-de-sacs, a traffic signal and construction management services with The Covello Group for the Sunset Industrial Complex, CIP Project No. 336-3128, in an amount not to exceed $661,697, and authorize the City Manager to execute change orders up to 10% of the contract amounts, and amend the CIP Budget Sheet to reflect these changes for CIP Project No. 336-3128.
 

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