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CC - (1) Acceptance of Work Performed by Premier Developing Services, Inc.; (2) Authorization to File a Notice of Completion once the Project has been Completed in its Entirety; and (3) Authorization to Release the Retention Payment after Expiration of the 35-Day Lien Period, for the Construction of the Hayden Tract Spur Parking Lot Project; and (4) Authorization to Release 50% of the Remaining Construction Funds to the Hayden Tract Owners Association pursuant to Owner Participation Agreement.
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Meeting Date: 09/26/2016
Contact Person/Dept: Glenn Heald/CDD
Todd Tipton/CDD
Phone Number: 310-253-5752
310-253-5783
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X]
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (09/20/2016)
Department Approval: Sol Blumenfeld, Community Development Director (09/09/16)
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RECOMMENDATION
Staff recommends the City Council (1) accept the work performed by Premier Developing Services, Inc. (Premier); (2) authorize the filing of the Notice of Completion once the Project has been completed in its entirety; and (3) authorize the release of the retention payment after the expiration of the 35-day lien period, for the construction of the Hayden Tract Spur Parking Lot Project (Project); and authorize the release of 50% of the construction funds to the Hayden Tract Owners Association (HTOA), pursuant to the amended Owner Participation Agreement between the City and HTOA.
BACKGROUND / DISCUSSION
Over the past decades businesses in the Hayden Tract have transitioned from manufacturing and industrial uses to creative office use. The change in use has resulted in a shortage of parking spaces in the area.
In the mid-1990s the former Culver City Redevelopment Agency (CCRA) met with the Los Angeles County Metropolitan Transportation Authority (MTA) to discuss improving a portion of the abandoned railway right-of-way (Spur) in the Hayden Tract for use as a parking lot for adjacent businesses. The abandoned railway spur had fallen into disrepair and was largely overgrown, littered with trash and debris and was an attractive nuisance for vandalism and vagrancy.
The MTA controlled the Spur pursuant to an easement that had been granted by the adjacent property owners when the Hayden Tract was created. The Spur was used to deliver materials by rail to the adjacent industrial uses. Because the MTA was no longer using the Spur for railroad purposes, one of the adjacent property owners initiated litigation and prevailed in rescinding the easement, which placed the property in control of the adjacent property owners.
The City established “T” zoning for the property which limited the use to parking and the former CCRA commenced planning for repurposing the Spur. The plans were sidetracked by the economic downturn and the dissolution of redevelopment agencies; however, with final approval by the Department of Finance of the Successor Agency to the Culver City Redevelopment Agency’s (Successor Agency) Long Range Property Management Plan in March 2014, the project recommenced and the Successor Agency was able to reach an agreement whereby it would convey City property, and fund design costs and half of the construction costs with tax exempt bond proceeds for with the creation of a 111-space linear parking lot with energy-efficient lighting and low-maintenance landscaping. The agreement was in the form of an Owner Participation Agreement (OPA), which was approved by the former CCRA on January 31, 2012, which was thereafter assigned to the City upon the dissolution of the former CCRA. The portion of the Spur to be improved is approximately 50 feet wide and 1,300 feet in length and located between Hayden Ave to the west and Eastham Drive to the east, running between and parallel to Steller Drive to the north and Warner Drive to the south.
The OPA required the owners to fund half of the construction costs, and form an association to manage the parking spaces and maintain the improvements. The association was formed as the Hayden Tract Owners Association (HTOA) and is comprised of five owners who abut that portion of the Spur where the Project is located. Two of the adjacent property owners declined to participate in the project and are not members of the HTOA. The City will convey its property to the HTOA upon project completion and is not an HTOA member. Although the new parking spaces are privately owned and will be used by the HTOA, each new parking space contributes to the area’s overall supply and reduces the demand on existing on-street parking spaces, which are available to all businesses in the area. In addition, the HTOA may lease their spaces to surrounding businesses if they choose.
On January 20, 2016, the City retained KOA Corporation (KOA) as the design firm for the Project. Immediately thereafter the City, KOA and the HTOA met to review project plans. Following some minor revisions and a February 3rd walk-through of the Project site, the HTOA approved the plans.
On February 8, 2016, the City Council approved the plans and specifications and authorized Staff to publish a notice inviting bids from qualified contractors with a bid closing on March 8, 2016. Premier Developing Services (Premier) was awarded a construction contract as the lowest responsive and responsible bidder; and on April 8, 2016, Premier was issued a Notice to Proceed. Temporary replacement parking was arranged in an adjacent lot for those vehicles already using the unimproved Spur for parking. In conjunction with the Spur improvements, the south side of Hayden Place was reconfigured and restriped from parallel parking to diagonal parking, resulting in a net increase of 27 additional new public parking spaces.
On July 15, 2016, construction of the Project was substantially completed and on July 18th, the HTOA members were able to commence using the Spur parking lot. All work has been substantially completed.
FISCAL ANALYSIS
Under the terms of the OPA and OPA (Amended), the City funded the design costs and half of the construction costs using pre-2011 tax-exempt bond fund proceeds which have specific restrictions on use. The remaining half is funded by the HTOA. The City contracted with KOA to design the Project and to perform construction management service for the amount of $229,890. An additional $11,000 was spent to perform an analysis of subsurface conditions prior to grading the Project site to avoid change orders due to unforeseen conditions.
KOA estimated the construction costs to be $1,675,850. The estimate was conservative in order to ensure the City and the HTOA would not be faced with unexpected cost overruns. The lowest responsive bid received was from Premier, at $667,596.25. Upon completion the total construction cost, including all change orders, is $825,435.82 (approximately 49% of the budgeted amount), which is split equally between the City and the HTOA ($412,717.91 each). The HTOA’s costs are allocated to the five members in an amount that is proportional to the number of parking spaces each member will receive.
If additional costs surface in an amount exceeding the stated anticipated close-out amount by more than ten percent (10%), Staff will return to the City Council for discussion and direction.
ATTACHMENTS
1. Map of Project location.
2. Parking Plan
3. Photographs of Spur before construction, during construction and after construction.
RECOMMENDED MOTIONS
That the City Council:
1. Accept the work performed by Premier Developing Services, Inc., on the Hayden Tract Spur Parking Lot Project as complete, and authorize recording the Notice of Completion;
2. Authorize the filing of a Notice of Completion with the Los Angeles County Recorder’s Office once the Project has been completed in its entirety;
3. Authorize release of the balance of the retention payment in the amount of $41,271.79, to Premier Developing Services, Inc. upon expiration of the 35-day lien period; and,
4. Authorize release of fifty percent (50%) of the remaining construction funds to the Hayden Tract Owners Association pursuant to the Owner Participation Agreement (Amended) executed between the City and the Hayden Tract Owners Association.