SR-414-002 (8)
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~nta Monica, Californ]a, J4Ibary 12, 1~82
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TO: The Santa ~onlca Redevelop~ent Agency
FROM: Agency Staff
SUPJECT: ResolutIon Authorizing p~y~ent of Legal Fees in
Connectlon wIth Lincoln Propertles COMpany ~atter.
Background/Discussion
The City Council adopted Resolution No. (.;,":l.S(; (CCS) on
SepteMber 9 1981, authorizing the employment of the law firm
of O'Mel"eny & Myers to render leg~l services in connection
with the LInea] n PropertIes COf'lpany matter on the terms
expressed
in the Ie t ter dated September
which
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1981,
attached and made a part of the contract.
The attached resolution ratifies the previous actIon of the
CIty Council ano authorizes the payments of expennitures for
the Ocean park RedevelopMent Project.
Recommendation
It is recommended that the Agency approve the attacheo
res 0 1 uti 0 n aut h 0 r i z i n 9 the p a yw en t 0 f ex pen cl i t u res for the
Ocean Park Redevelopment Project and authOr!Zlng the
ChaIrperson to execute the document.
Prepared By: NICk Rives
K. Wetanabe
JAN 1 2 1982
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RESOLUTION !\TO.
(RedevelopMent Agency Series)
A REsnLUTION OF TH~ REDEVELOPMENT AGENCY OF
THE CITY OF S~NTA MONICA AUTH0~lZT~G THE
P~YMENT OF EX~F.NDTTURES FOR THE nCp.AN
PAq~ REDEVELOpMENT PROJErT
THE REDEVELOP~ENT AGENCY OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SE(,~ION 1.
The law flr~ of O'Melveny & Myers has
been employed by the City of Santa ~on 1 ca to rend e r leg a 1
serVIces in connectIon wIth the Ocean Park He-development,
which services are of benefit to the Agency.
SECTION ?
The Redevelopnent Agency authorizes
re imbur sement to the City for the payment 0 f legal fees of
the law fIrm of O'Melveny & Myers.
SEeTInN 3.
The Secretary shall certIfy to -the
adoption of this resolution, ?ond thenceforth 2nd therecfter
the sane sh~l~ be in full force and effect.
APPROVED AS TO FORP:
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ROBERT t"1.. MYERS
Agency ,~ttorney
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SEP 1 5 \981
Santa Monica. California, September 9. 1981
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TO: Mayor and City Council/Redevelopment Agency
FROM: City Staff
SUBJECT: Negotiations With Sea Colony Homeowner's Association
Regarding North-South Accessway-Ocean Park Redevelopment Project
~ackground
On August 25, 1981, the Council approved a contract with California Landscape,
Inc., for the construction of the east-west accessway and a gate at the northern
end of the north-south accessway in the Ocean Park Redevelopment Project. Item 2,
the construction of the north-south accessway was deleted from the contract and
staff was directed to negotiate with the Sea Colony Homeowner's Association re-
garding the sharing of costs for the construction of the north-south accessway.
As a result of these negotiations. the Sea Colony Homeowner's Association has
revised their proposal as described below. Additionally, the staff has prepared
an estimate of the minimum City/Agency expense for a downgraded accessway develop-
ment as an alternative to the approval of the Sea Colony proposal.
Discussion
Based on the Disposition and Development Agreement with Lincoln Property Company
and the Coastal Development Permit, the Redevelopment Agency is responsible for
all site improvements. including the installation of the firewood/aecessway, The
original bid was reviewed to determine possible cost-saving alternatives for a
functional but downgrated development plan.
This analysis. which is attached as Exhibit A, indicates potential cost savings
of between $21.000 and $28.200 resulting primarily from a reduction in lighting,
the elimination of the exposed aggregate surfacing of the concrete. the substi-
tution of grass for the more extensive landscaping and the
possible elimination
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Mayor and City Council/Redevelopment Agency
September 9, T981
of the gate. If these reductions are approved, the minimum Agency obligation
would be approximately $64,500 without the gate, or $72,000 with the gate. These
revisions would also result in a slight reduction in the City'sannual maintenance
expense, previously estimated to be approximately $8,000.
As an alternative, the Sea Colony Homeowner1s Associated has offered to contribute
$35,000 toward the cost of the originally proposed development plan, as well as
to assume the annual maintenance costs. Approval of this proposal would result
in a net Agency cost of $57,700, a savings of $lq,300.
Alternatives
T. Downgraded Development
The City Council may authorize staff to negotiate a change order to the contract
with California Landscape, Inc., for the installation of a downgraded fireroad/
accessway in an amount not to exceed $64,500, plus an adjusted 6% contingency
fund, or
2. Original Development with Sea Colony Participation
The City Council may authorize the staff to negotiate a change order to the con-
tract to reinstate the originally proposed Item 2, north/south accessway pian,
in an amount not to exceed $85,200, plus contingency fee, subject to'
a) The receipt of a binding agreement from the Sea Colony Homeowner's Asso-
ciation to reimburse the City in the amount of $35,000 within 60 days
of the approval of the change order, and
b) The execution of a ground Tease with the Sea Colony Homeowners's Association
and the Redevelopment Agency to obligate Sea Colony to the annual maintenance
costs for the north/south accessway and to authorize the Homeowner's Asso-
ciation to lock the gate from dusk to dawn.
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Mayor and City Council/Redevelopment Agency
September 9. 1981
Recommendation
It is recommended alternative #2 be approved and:
1. The City Council authorize the City Manager to execute a change order to
the contract with California Landscape, Inc., to reinstate Item #2, at a
price not to exceed $85,200 plus a 6% contingency fund; and
2. The City Council direct the City Attorney to prepare, and the City Manager
to execute a binding agreement with the Sea Colony Homeowner's Association
obligating the Association to a payment of $35,000 toward the construction
of the Item 2 elements, and payable within 60 days of execution; and
3. The Redevelopment Agency to direct the City Attorney to prepare, and the
Executive Director to execute a ground lease with the Sea Colony Homeownerls
Association to assure the assumption of the annual maintenance costs for the
north/south accessway by the Association.
Prepared by: John Herner
Stan Scholl
JH:SS:sh
Attachment
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EXHIBIT "A"
Minimum Maximum
Item Existing Bid Expense Savi ngs
Grad i ng . demo and base $ 9,296 $ 9,296 $ -0-
Survey I ,500 I .500 -0-
Turfblock 12,000 12.000 -0-
Electrical 17,056 12,0001 5,056
Concrete 22,200 17,7002 4,500
Landscape 8.920 2,0003 6,920
Irrigation 13.828 10,0004 3,828
Hand ra i 1 s on stairs 400 -0- 5 400
Subtotal 85,200 64,496 20,704
Gate 7.500 7.500 -0-
Total $92,700 $71 .996 $20.704
1. Potential savings would result from the installation of fewer, brighter.
taller light fixtures. Savings limited due to long. narrow site configuration
and possibility of intruding into adjoining residential units.
2. Potential savings based on substitution of broom fInished. untinted concrete
for tinted, exposed aggregate finish, and the reduction of access from the
Sea Colony development.
3. Potential savings based on the substitution of grass for the trees and
shrubbery proposed in the original plans.
4. Potential savings due to slightly less complicated irrigation system for all
grass ground cover.
S. Potential savings due to reduction of access points from Sea Colony.