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SR-417-01 PCD:SF:AA:F:\PLAN\ADMIN\CIVCTR\CCPARKING\CM\CCPARKING.DOC Council Meeting: March 27, 2001 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute a Contract with The JCM Group for Project and Construction Management Services and to approve a Preliminary Financing Plan for the Civic Center Parking Structure. INTRODUCTION This report recommends that the City Council: (1) authorize the City Manager to negotiate and execute a contract with the JCM Group, in an amount not to exceed $900,000, plus an additional 20 percent for contingencies, to provide project and construction management services for the proposed Civic Center Parking Structure and (2) approve a preliminary financing plan for the project, including adoption of a reimbursement resolution. BACKGROUND Increased parking demand and the necessity to complete earthquake retrofitting of the downtown parking structures require that the City move forward immediately with the development of a new parking facility in the Civic Center. DISCUSSION The proposed parking structure will be located on the City-owned site bounded by Fourth Street, Civic Center Drive, Avenida Mazatlan and Olympic Drive. It is anticipated that the 1 site will accommodate an approximately 320,000-square foot, 920-space parking structure of one and one-half levels below grade and five levels above grade with rooftop parking. The ground floors adjacent to Fourth Street and Olympic Drive will include public-oriented uses to help integrate the structure into the street environment. Most of the site is currently being used as parking for police vehicles, while the remainder of the site is being used for construction staging and excavation for the adjacent Public Safety Facility. The proposed Civic Center Parking Structure will help to meet several important area parking needs, including: Civic Center Public Parking: In concert with construction of the Public Safety ? Facility, Olympic Drive will be constructed in the location of the current metered public parking lot south of City Hall. During the construction period, some additional public parking will be created on a temporary basis by restriping Main Street to allow for angled parking, while the remainder of visitors will be shifted to the Civic Auditorium parking lot. The Civic Center Parking Structure will provide a permanent solution to the parking needs of short-term visitors to the Civic Center. Temporary Earthquake Retrofit Parking: The City needs to undertake a program of ? retrofitting or rebuilding the downtown parking structures to help ensure their safety in the event of a major earthquake. While each parking structure is undergoing retrofitting or reconstruction, that structure may have to be closed to parking. The Civic Center Parking Structure will provide an interim parking resource for temporary downtown parking needs. 2 Long-Term Parking Needs: Once the downtown parking structure retrofit process ? has been completed, the parking structure will be available to accommodate part of the parking demand that is currently satisfied by the Civic Auditorium parking lot. Shifting this parking demand to the Civic Center Parking Structure is a critical step in allowing the surface parking lot to be converted to community-oriented uses. PROJECT AND CONSTRUCTION MANAGEMENT In order to ensure continuity from project initiation through construction close-out, it is imperative to hire a project manager immediately. The project manager will be responsible for providing a variety of services, including managing project design, comprehensive construction management services, and assistance in negotiation of contracts for design, construction, and other project services. Staff recommends that the JCM Group be selected to provide the project and construction management services for the project, based on the following factors: The JCM Group has a strong record of providing high-quality services to the City ? of Santa Monica and other public and private clients; and The JCM Group is currently providing project and construction management ? services on site for the Public Safety Facility; and The JCM Group has extensive familiarity with the site and its conditions, including ? the special conditions of construction immediately adjacent to the Police Department, City Hall and County Courthouse; and The JCM Group will be able to direct the work of the two projects to minimize time, ? cost, and coordination problems; and Because the JCM Group has already committed on-site staff resources, they are ? able to give the City a competitive price for the additional services of managing the parking structure design and construction; and The JCM Group completed a competitive process for selection as project and ? 3 construction manager for the Public Safety Facility. FINANCING PLAN Preliminary estimates place the development cost at approximately $22.8 million, including design and construction. The project cost could be financed through lease revenue bonds supported by parking revenues and redevelopment agency funds. Depending on the pricing and utilization of the parking, the parking structure could generate positive net revenues to support a portion of the lease revenue payments. Earthquake Recovery Project Area redevelopment funds could be used for the remainder of the lease payments as the parking structure will implement or support several public improvements contained in the Earthquake Recovery Redevelopment Plan, including providing interim replacement parking to support the seismic repair and renovation of public parking facilities in the downtown commercial district, maintaining public access to emergency and essential facilities by helping to provide adequate parking in the Civic Center area, and providing parking to support the upgrading of the public areas in the Civic Center. Schematic design, public and environmental review, and cost estimating are expected to occur prior to issuance of the lease revenue bonds. In the interim, staff recommends the appropriation of funds for initial project costs, including the construction management contract and site surveys. Adoption of a Resolution of Intent (see Attachment A) is necessary so that these costs, as well as other pre-financing costs such as schematic design and environmental review, are eligible for reimbursement from the future lease revenue bonds. Adoption of the resolution does not obligate the City Council to issue 4 lease revenue bonds for this or other projects. NEXT STEPS The ROMA Design Group has completed a conceptual feasibility study of the parking structure (see Attachment B.) Staff is using the design study to solicit proposals from design-build teams for design and construction of the project. Once a design-build team is selected, staff will return to Council for approval of the contract. The design-build team will prepare the required project plans and the City will conduct environmental review. The project will undergo review by the Planning Commission, Architectural Review Board, City Council and Coastal Commission. Once public and environmental review has been completed, staff will return to Council with the necessary actions for issuance of the lease revenue bonds. Staff hopes to have this project ready to begin construction in the fall of 2002, once the Public Safety Facility construction has progressed to the point that the parking structure site can be made available for this project. BUDGET/FINANCIAL IMPACT Staff recommends that $1,200,000 be appropriated at CIP Account No. C01056201.589000 from the General Fund ?Major Capital Project? designation approved by the City Council on February 27, 2001. RECOMMENDATION It is recommended that the City Council: 1. Authorize the City Manager to negotiate and execute a contract with the JCM 5 Group, in an amount not to exceed $900,000, plus $180,000 for contingencies, to provide project and construction management services for the proposed Civic Center Parking Structure; and 2. Approve a preliminary financing plan and appropriate interim funding; and 3. Adopt a Resolution of Intent allowing future lease revenue bonds proceeds to be used to reimburse the City for costs associates with the project. Prepared by: Suzanne Frick, Director, Planning and Community Development Andy Agle, Deputy Director, Planning and Community Development Jeff Mathieu, Director, Resource Management Tina Rodriguez, Redevelopment Administrator Attachments: A. Resolution of Intent B. Feasibility study conceptual drawings 6