SR-CC/RA-6
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CIty CouncIl Meeting 9-17-85 Santa MonIca, CalIfornia
SUPPLEMENTAL STAFF REPORT
TO: Redevelopment Agency and CIty CouncIL
FROM: CIty Attorney
SUBJECT: Award of Contract for ConstructIon of Ocean
Park Beach Improvements
The CIty of Santa MonIca is undpr a legal oblIgation to
"execute a publIC works contract and commence the constructIon
of the beach improvements wIthin 120 days after the convevance
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of the Phase II land to PacIfIC. " (Amended Sales Agreement,
Paragraph 8{e). ) In order to carry through on these legal
oblIgatIons the Agency and the CIty CouncIl have taken a
varIety of ImplementIng actIons, Includlng;
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1. The Issuance of Ocean Park Redevelopment ProJect Tax
AllocatIon Bonds, SerIes 1984, dated October 1 , 19B4.
2. The adoption by the Agency of a resolutIon on
October 23, 1984, determInIng that certaIn publiC Improvempnts
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to be of benefIt to the Ocean Park Redevelopment ProJect, and
a concurring resolution by the CIty Council on the same date.
3. On March 26, 1985, the Redevelopment Agency
authorIzed the City to undertake constructIon responSibIlIty
for both the on-SIte par-k and beach Improvements and to
reImburse the CIty for the Agency's share of such construction
cost. The CIty agreed to undertake such constructIon SUbJect
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to reImbursement from the Redevelopment A.gency for the
Agency's share.
In awardIng the contract for the on-SIte park and the
off-slte Improvements; it 1S lmportant that the Clty be In
legal complIance wIth the prIor actIons taken to Implement the
varIOUS publIC Improvements. As dIscussed below, the CIty
Attorney concludes that no legal barrIer eXlsts to the award
of the contract to TerraIn, Inc.
1 FIndInq of Beneflt. The Redevelopment A.gency, In
fIndIng that off-SIte beach Improvements would be of benefIt
to the Ocean Park Redevelopment ProJect, adopted ResolutIon
Number 394 [RAS) on October 23, 1984. In SectIon 3 of thIS
ResolutIon, the Agency authorIzed and approved the payment of
$4,743,600.00 "for the value and cost of the Installatlon and
constructIon of the pUblIC Improvements " Although the
costs of these Improvements IS $5,676,217 00 (IncludIng
traffIC Improvements), It IS Important to note that thE"
authorIty contained In ResolutIon Number 394 (RAS) has not
been exceeded. The purpose of thIS ResolutIon was to IndIcatE"
the amount of the Agency's contrlblltlon for the Improvements.
The Agency's share of thIS total cost IS $3,686,217.00. Th~
remaInIng $1,990,000.00 IS beIng paId for by the CIty from the
DomInIon contrIbution reqUIred by the Amendeci Snlf!S Agreement.
(Under the Amended Sales A.greement, the developer payment IS
Clty revenue and not Agency revenue I
2 ReImbursement. The March 26, 1985 actIon of the
Agency and CIty authorIzed the CIty to undertake the publIC
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works constructIon sub1ect to reImbur'5ement from the
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Redevelopment Agency. The Staff Rpports presented to the CIt.y
CounCIl at Its meetIng on September 10, 1985, dId not reflect
thIS actIon Pursuant to thIS actIon, the CIty of Santa
MonIca 15 responSIble for the PUblIC works contract and the
paYIng of the contractors. The Redevelopment Agency IS
responSIble for the reImbursement of these expenses by payment
to the CIty_ A proper reflectIon of the budgetary accounts to
reflect the actIon IS as follows:
On-SIte Park.
Funds for the Agency's reImbursement to the CIty have
beE'n budgeted In Account Number 18-720-263-000-904.
Funds for the CI ty' s payment to the contractor have been
budgeted In Account Number 01-720-263-000-904 WI th
reImbursement from the Agency to the General Fund through
Account Number 01-720-695-000-904.
Beach Improvements.
Funds for the Agency's reImbursement to the CIty have
bepn blldgetpd In Account Numbpr 18-720-253-000-906
Funds for the CIty'S payment to the contractor have been
budgeted In Account Number 01-720-263-000-906 (Agency's
contrIbutIon), WIth reImbursement from the Agency to the
GenerF.ll Fund through Account Number 01-720-695-000-906, and
Account Number 01-720-263-000-910 (CIty'S contrIbutIon) .
PREPARED BY: RObert M Myers, City Attorney
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