HomeMy WebLinkAbout1989-05-16; Housing & Redevelopment Commission; 125; Carlsbad Streetscape Phase I - Village FaireHOUSING AND 3EDEVELOPMENT COMMIS’- DN - A
AB# 125
MTQ 5/16/89
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-TITLE: AWARD OF CONTRACT FOR CONSTRUCTION
DEp; RED/MP OF CARLSBAD STREETSCAPE, PHASE I,
. VILLAGE FAIRE FRONTAGE IMPROVEMENTS
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RECOMMENDED ACTION: ’
Adopt Resolution No. 140 approving the plans, specifications, and contract documents for the construction of the Carlsbad Streetscape, Phase I improvements, determining and finding of public necessity, awarding a contract for construction, and issuing the Coastal Development Permit for all phases of the Streetscape project.
ITEM EXPLANATION:
The Village Faire Project is a private development project .fronting Carlsbad Boulevard, Elm Avenue, Washington Street, and Grand Avenue. Construction is currently underway with an anticipated completion date of August, 1989.
Completion of Streetscape equivalent street improvements fronting ,Elm Avenue and Carlsbad Boulevard is a specific condition the Village Faire project developer must accomplish prior to occupancy. Frontage improvements compatible with the approved Streetscape design concept are considerably more elaborate, detailed, and expensive than typical City standard street improvements seen City wide. Additionally, the development of the downtown Streetscape theme is based upon a consistency and uniformity of frontage improvements the entire length of Elm Avenue and Carlsbad Boulevard within the Redevelopment area. Therefore, the Housing and Redevelopment Commission has previously made the finding that the Redevelopment Agency, through its financing capabilities, will finance and install all Streetscape improvements in the downtown area.
The Streetscape program is an essential‘ catalyst to the construction of desirable major development projects in downtown Carlsbad. Village Faire is the first such project, and is an important anchor for the renaissance of downtown Carlsbad.
The Phase I Streetscape improvements include new curbs and gutters, decorative brick sidewalks, antique style street lights, carved,wood street signs, pedestrian lighting bollards, and stone trash receptacles. An obsolete traffic signal pole at the corner of Elm Avenue and Carlsbad Boulevard will be replaced. Although a portion of Elm Avenue will be resurfaced, the Phase I construction will not alter the existing striping or painted median. The remaining Elm Avenue work west of Washington Street is to be constructed in Phase II.
A tile medallion, fifteen feet (15') in diameter, will be built at the northeast corner of Elm Avenue and Carlsbad Boulevard under the supervision of the artist, James T. Hubbell. The medallion is a color rendition of the City seal with its bird of paradise flower.
Page Two of Agenda Bill No. 125
Harshbarger Construction, Incorporated, is the general contractor for the Village Faire project. Because the public street improvements must be closely coordinated and connected with the private site improvements, it is considerably advantageous and economical for this same general contractor to install both projects. New electrical and water service connections for Village Faire and the street improvements must be installed simultaneously. It is desirable to coordinate both projects to allow continued access to existing businesses. This joint project construction benefits the City by placing the responsibility for matching the two (2) projects with the contractor. In turn, this avoids possible construction claims against the City for interference with the Village Faire project while at the same time constructing the Streetscape, Phase I improvements.
The Village Faire site improvements utilize many of the same construction materials and plant species as will be used in Streetscape, Phase I. Thus, Harshbarger Construction as the overall general contractor, realizes larger volume economies that are reflected in the negotiated contract price of $598,562.39. Many of the individual items of work in the Phase I construction are identical to items of work that were competitively bid for Phase II. The sum of Harshbarger Construction's identical item prices does not exceed the sum of bid prices of the lowest phase II bidder, Kirchnavy Construction.
The Phase I construction is to require approximately five (5) months to complete. The street work will be accomplished and coordinated with the opening of the Village Faire project. The $598,562.39 award includes an additive alternate in the amount of $75,918.00 for a 24-inch diameter reinforced concrete storm drain in Grand Avenue from Washington Street to State Street. The storm drain connects the Village Faire system in Washington Street with an existing storm drain in State Street. The new storm drain will eliminate flooding in Washington Street and Rotary Park. An upstream extension of this storm drain will be constructed in Washington Street at developer's cost as a part of the Village Faire construction.
Staff recommends approval of the project plans, specifications, and contract documents and requests the Housing and Redevelopment Commission award the Streetscape, Phase I construction to Harshbarger Construction, Incorporated.
ENVIRONMENTAL REVIEW:
The Planning Director issued a negative declaration for the entire Streetscape project on January 20, 1988, finding the Streetscape project was consistent with the implementation of the California Environmental Quality Act (CEQA) and the environmental protection ordinances of the City of Carlsbad. This negative declaration was subsequently certified by the Carlsbad City Council sitting as the Housing and Redevelopment Commission, on February 2, 1988.
Page Three of Agenda Bill No. 125
COASTAL DEVELOPMENT PERMIT:
The California Coastal Commission has issued permit authority to the city of Carlsbad for all projects within the Carlsbad Redevelopment area. The Coastal Development Permit for the Streetscape project has been previously approved by the Housing and Redevelopment Commission on February 21, 1989.
PROPOSITION H REOUIREMENTS:
The multiphased Downtown Streetscape project is to be funded from proceeds of a completed tax allocation bond sale which represent a source of funds exempt from the City's Propositoin H limitations regarding Capital facility construction in excess of $l,OOO,OOO.
GENERAL PLAN CONSISTENCY:
The Planning Commission formally adopted Resolution No. 2696 on October 21, 1987 determining the Carlsbad Capital Improvement Program for the 1987-88 budget year, which included the Carlsbd Streetescape project, was in conformance with the City's General Plan.
FISCAL IMPACT:
The funding of the Streetscape Phase I construction project is part of the Tax Allocation Bond program which also includes the Senior Center and parking lot project. The Finance Director's memo dated 5-5-89 summarizes the present condition of the bond program and the ability of the Agency to fund the streetscape construction as well as the other projects. Generally, the Finance Director has indicated that the Agency will have insufficient bond funds to support the full cost of these three projects. A shortfall of $560,000 is expected based on current cost estimates. There are currently sufficient funds to support the Streetscape Phase I program, however by taking this action the Council should be aware that the shortfall will affect the Elm Avenue portion of the Streetscape project.
Staff is asking the Council to appropriate $750,563 for the Streetscape Phase I construction based on the summary shown below:
Construction $ 598,562.39 Construction Contingencies (12%) 69,OOO.OO Design 40,000.00 Inspection 28,OOO.OO Project Administration and Geotechnical Services 15.000.00
Total $ 750,562.39
Page Four of Agenda Bill No. 125
EXHIBITS:
1. Location map.
2. Resolution No. 140 approving plans and specifications, awarding construction, waiving public advertising and competitive bid procedures for Streetscape, Phase I, and approving a Coastal Development Permit for the Streetscape program.
3. May 5, 1989 memorandum from the Finance Director.
LOCATION MAP
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‘ROJECT NAME PROJECT # EXHIBIT
STREETSCAPE PHASE I 3288 1
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RESOLUTION NO. Pm
RESOLUTION OF THE CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION, APPROVING PLANS AND SPECIFICATIONS, AWARDING A CONSTRUCTION CONTRACT, WAIVING PUBLIC ADVERTISING AND COMPETITIVE BID PROCEDURES. FOR STREETSCAPE PHASE I. PROJECT NO. 3288
WHEREAS, the Housing and Redevelopment Commission of the
City of Carlsbad, California, has determined it necessary,
desirable and in the public interest to construct Phase I of the
Downtown Streetscape project; and
WHEREAS, plans and specifications for the furnishing of
all labor, materials, tools, equipment, transportation and other
expenses necessary or incidental for said project, have been
prepared and are on file in the Municipal Projects Department of
the City of Carlsbad; and
WHEREAS, the Commission has previously authorized and
completed the tax allocation bond sale necessary to fund said
project: and
WHEREAS, the Streetscape program is consistent with the
General Plan of the City of Carlsbad; and
WHEREAS, the construction sequencing and coordination of
the Streetscape, Phase I, construction with Village Faire, PD
305 requires overall supervision by the general contractor
presently engaged in the site construction.
WHEREAS, the Housing and Redevelopment Commission has
determined it to be of substantial public benefit and
significant potential project economies sufficient to make the
finding to waive competitive bidding requirements for said
project; and
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WHEREAS, the Housing and Redevelopment Commission is
desirous of proceeding with the Streetscape, Phase I
improvements as a coordinated effort with immediately adjacent
private development improvements currently underway and hereby
finds it a matter of public safety, necessity and economy: and
WHEREAS, negotiations with Harshbarger Construction
Incorporated have resulted in the submittal of a formal
construction bid to install the Streetscape, Phase I
improvements; and
WHEREAS, the Housing and Redevelopment Commission has
reviewed said bid and hereby finds it to be consistent with
costs and items of work submitted to the Commission and awarded
by the Commission for similarly scoped projects in the immediate .
area of said project: and
WHEREAS, the Housing and Redevelopment Commission hereby
finds it a matter of public necessity, public benefit, and
consistent with the goals and objectives of the formally
adopted Carlsbad Housing and Redevelopment Agency Plan, and
State Law enabling the Carlsbad Housing and Redevelopment Agency
to proceed with the award of the Phase I Streetscape
improvements as presented herein at this time.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and
Redevelopment Commission of the City of Carlsbad, California as
follows:
1. That all above recitations are true and correct.
2. That the plans and specifications as presented are
hereby approved.
3. That the Housing and Redevelopment Commission of the
City of Carlsbad does hereby find it necessary, desirable, and
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in the public interest to waive competitive bidding
requirements due to public necessity and economy and award the
Streetscape, Phase I project to Harshbarger Construction,
Incorporated.
4. That the negotiated bid in the amount of $598,562.39
to Harshbarger Construction Corporation, Incorporated for the
construction of said project is hereby accepted and the
Chairperson of the Housing and Redevelopment Commission and City
Clerk are hereby authorized and directed to execute a contract
hereinafter.
5. That the amount of $750,563 is hereby appropriated
into Account #811-820-1880-3288 for this project. This amount
replaces any previous appropriation for Streetscape Phase I
construction.
6. That by this action, the Carlsbad Housing and
Redevelopment Commission hereby finds the award of the Phase I
of the Downtown Streetscape Project to be consistent with the
goals and objectives of the Carlsbad Housing and Redevelopment
Agency Plan.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
Housing and Redevelopment Commission held the 16th day of
&Y I 1989, by the following vote, to wit:
AYES: Commissioners Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ABSENT: None
(SEAL)
EXHIBIT No. 3
May 5, 1989
TO: CITY MANAGER
FROM: Finance Director
REDEVELOPMENT BOND FUNDS AVAILABLE FOR BTREETBCAPE PROJECT
On May 14, 1989, the City Council will be considering awarding contracts for the downtown streetscape projects. This action will have a significant fiscal impact on the Redevelopment Bond Program and should be taken only with a full understanding of the issues. The following review of the program and its current status should allow the Council to make an informed decision.
The Council should be aware that the Agency will not have sufficient funds to complete the entire streetscape project from bond issue proceeds. As much as $560,000 (in 1989 dollars) may have to be funded from other sources or the scope of the ultimate project may have to be reduced.
Fundins Capital Proiects
In April 1988 the Redevelopment Agency sold $12 million in Tax Allocation Bonds. The proceeds of these bonds were to be used to finance three major projects in the area: the Senior Center, the Elm and Carlsbad Blvd streetscape, and parking facilities.
When the bonds were sold the Agency received a total of $10.4 million in usable funds in two pieces. The first portion, totaling $6.4 million, was immediately available for use. The Agency was able to expend as much as necessary to meet current obligations. The second portion, totaling $3.95 million was placed in escrow to be transferred to the Agency when tax revenue grew to a level sufficient to pay the debt service costs. If funds remain in the escrow account at the end of the third year (April 1991), the trustee will call outstanding bonds in the amount of un,used escrow funds.
As of this date the Council has approved two key projects funded from bond proceeds: the Senior Center and parking lot leases in the downtown area. In addition, the Council will be awarding contracts for Phases I and II of the streetscape program at the 5-14-89 meeting.
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As the table below shows, the bond program will have adequate funds to support these projects through completion.
City of Carlsbad
Redevelopment Agency
Tax Allocation Bond Program Projects
Project Costs Through 1989-90
Values in Millions
~ ::.:.:.::.> . . . . ..\......._.........,.,.,.,.,...,.......,.....,.,.,...................,...,.,.,.,.,.,..........
Senior Center
Parking Program
Streetscape Phase I
Streetscape Phase II
Total Project Cost
Amount
3,500
950
750
2,200
7,400
. . . . . . . . :::::::::::::i::::::::::::I:::::::~:~~:~:~~::::::~:~:~::.:~:~:~:~:~~:~:~:~~:::::::::::::::~:::::::::~:::: ~~~~~.~~al~a~l~~~~~~~~ :.):.:.>+>::.:.: :::~~:.;~~:.:.:.:.:.~~: >:,:,:.:.:.:.: ._...(.,.,.,.,,,.,,,.,.~.,.,.,.,.,,,,,
Direct Bond Proceeds 6,440
Escrow Funds Available lo/89 1,750
Total Funds Available 8,190
790
At the end of 1989-90 the Agency will have access to about $8.2 million with about $7.4 million obligated to projects.
Although the Agency is in good position to enter into the next phases of the streetscape program a conflict begins to appear between total project costs and the funds available. As shown below the total bond program will provide $10.4 million in funds, while the project costs are projected to total $10.95 million.
City of Carlsbad
Redevelopment Program
Tax Allocation Bond Program
Total Project Costs
Values in Millions ~- .:.:.:.:.:,:.: . . . . . . . . . . . :...:.:.:.:.:.:.~:.:.;.:.:.:.:.:.:.~:.~:.~:.:.:.:.~.:.:.:.:.:.:.:.~~:.:.~:.:.:.:.:
Senior Center 3,500
Parking Program 950
Streetscape - All Phases 6,500
..:.:.‘.:.:.>:.5:.: . . :.:.:.:.:.‘:‘:~:.:::::::::::::::::...:::::.:::~:~:~:::::: :.:.:(.:,:,:,:. :I :,:.:,:.:.):.~, xg[$i ,iii”iji~~:,~~~~~~~~~~~~~~
1, : : :-:,:.:.:.~:,:‘i:‘:::.:::.: ?:.: : : :.:.:.: : :.: :-:-:,:.:,:,:,:-::-:.:.:.:,: : :.*: : :?:~:.:~:
10,950
I Total Bond Funds Available 10,390
560
Based on this projection the streetscape program may fall as much as $560,000 short. The cash flow estimates show that by January 1991 the agency will have expended all available bond funds. Prior to that date the City/Agency will have to elect to reduce the scope of the project or to advance funds to allow completion of the project as planned.
Withdrawal of Escrowed Bonds
The Agency's ability to withdraw funds from escrow is a central element in the cash flow projections. Without a significant cash inflow into the project funds in 1989-90 the City would be required to halt construction on major projects or to advance funds to fill in the cash flow gap until escrowed funds could be accessed in 1991.
The staff recently conducted a detailed review of the county's records to verify the amount of tax allocation revenues the Agency will receive in 1989-90. According to the review the total tax revenue to the agency will be about $1.33 million. This figure compares favorably with the estimates prepared by the economic consultant, Katz Hollis, used to support the feasibility of the bond issue. As shown below, the current estimate falls just short of the Katz Hollis estimate.
City of Carlsbad
Redevelopment Program
Projected Tax Allocation Revenue
Values in Millions
Year
1988-89
1989-90
Per Katz Current Increase
Hollis Estimate (Decrease)
1.12 1.12 0.00
1.35 1.33 (0.02)
If this revenue level is verified by the county Auditor and Controller in August, the agency will be able to withdraw between $1.750 and $2.0 million from escrow on October 15, 1989. This level is sufficient to allow the Council to proceed with the Streetscape Program Phases I & II without danger of experiencing a negative cash position in the bond program through 1989-90.
Summary
As shown above, the Council should be aware of the financial issues surrounding the bond program. The funding program should be adjusted to reflect the Agency's ability to fund projects from bond proceeds. Although the senior center and parking lot plans can be fully funded, additional resources will be necessary to support the streetscape project.
Additional data is available on this subject is available if you would like to review cash flow projections or other issues.
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