SR-05-14-2002-1F
RMD:HSG:BM:TR:F:\Resource\share\staffreports\tieback agt v5
City Council Meeting 5-14-02 Santa Monica, California
SJ iF
HAY f".,
Mayor and City Council
FROM: City and Redevelopment Staff
SUBJECT: Tieback License Agreement with the RAND Corporation
INTRODUCTION
This staff report recommends that the City Council authorize the City Manager to
negotiate and execute a Tieback License Agreement with the RAND Corporation
("RAND") in relation to development of the new RAND Headquarters.
BACKGROUND
On or around April 30, 2002, RAND planned to commence construction of its new
headquarters to be located on Main Street immediately south of the current
headquarters. A series of steel construction rods, called tiebacks, will be needed to
shore the walls of the underground parking garage during construction. ThiS site is
surrounded on all sides by a combination of public right-of-way, City-owned property
and Agency-owned property. A three-party tieback agreement between the City,
Agency, and RAND is needed to permit the tiebacks to encroach onto these properties.
May 23, 2000, the Redevelopment Agency adopted Resolution 46Ei (RAS)
authorizing the Executive Director to negotiate and execute tieback license agn3ements
relating to the management and maintenance of the Agency-owned property.
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MAY tit 2U82
Therefore, Agency authorization to negotiate and execute this Tieback Agreement has
already been granted.
DISCUSSION
The Agreement will require RAND, at the City and Redevelopment Agency's discretion,
to either remove the tiebacks (or portions thereof) that encroach into City/Agency
property or reimburse the City/Agency for the cost of removal.
Per the City's standard requirements for shoring permits, the developer is responsible
for removing tiebacks which encroach into the public right-of-way. Resolution No. 9334
(CCS) also requires payment of a one-time fee of $701 for shoring permits. Rights-of-
way affected by this Agreement include Main Street and First Court Alley.
Other City and Agency properties adjacent to the RAND site include the site of the
Pacific Shores Hotel, which is owned by the City; the Agency-owned parcel directly
between First Court Alley and Ocean Avenue, called Parcel 2; and, the large Agency-
owned parcel located northwest of the RAND headquarters, called Parcel 1 (See
Attachment 1). Parcel 2 will likely be developed during the next 5 to 10 years with
affordable housing, pursuant to the Civic Center Conceptual Plan. In anticipation of this
development, the Tieback License Agreement will require that RAND pay a fee of
$15,000 to cover the cost of the removal of tiebacks in Parcel 2.
2
Regarding the Pacific Shores Hotel site and Parcel 1, at this time no development
requiring major excavation is contemplated. Nevertheless, if at some point in the future
the City or Agency pursues development that would require major excavation, the
Tieback License Agreement will require that RAND remove or pay for the removal of
any tiebacks encroaching into these two sites upon City/Agency request.
The obligations of the Agreement will be binding upon RAND and any successors in
interest to the property. Further, the Agreement will be recorded to ensure notice to
any successors of this obligation.
FINANCIAL/BUDGET IMPACTS
Pursuant to Resolution No. 9334 (CCS), RAND will be required to pay the City a fee of
$701 for tiebacks in the public right-of-way to account number 01401.400610.
Additionally, RAND will be required to pay the Agency an amount of $15,000 to account
number 17263.400170 to reimburse the Agency for the potential cost of removing
tieback rods on Agency-owned Parcel 2.
Upon request, RAND will be responsible to either remove or pay for all costs of removal
of any tiebacks encroaching into the City-owned Pacific Shores Hotel site and the
Agency-owned Parcel 1 within a timely manner. If RAND fails to meet this obligation,
the City or Agency may need to use respective City or Agency funds on an interim basis
to remove the tiebacks. The City and Agency will seek full recovery of all costs
incurrred in such an event.
3
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to negotiate and
execute the Tieback License Agreement with the RAND Corporation to allow for tieback
encroachments necessary for the development of the new RAND Headquarters.
Attachment 1:
Site/Parcel Map.
Prepared by:
Jeff Mathieu, Director of Resource Management
Craig Perkins, Director of EPWM
Tony Antich, City Engineer
Bob Moncrief, Housing and Redevelopment Manager
Linda Moxon, Deputy City Attorney
Tina Rodriguez, Redevelopment Administrator
William Buol, Civil Engineer
Tad Read, Housing Coordinator
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