SR 06-11-2019 8B
City Council
Report
City Council Meeting: June 11, 2019
Agenda Item: 8.B
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Architecture Services
Subject: First Modification to Guaranteed Maximum Price Contract with Hathaway
Dinwiddie Construction Company and Award RFP to Twining Consulting for
Deputy and Material Testing Inspection Services for City Yards Modernization
Project
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a Guaranteed Maximum
Price (GMP) first amendment to Design-Build Contract No. 10371(CCS) in the
amount of $37,000,000 with Hathaway Dinwiddie Construction Company, a
California-based company, for construction services for laying underground
foundations and site utility work for the City Yards Modernization – Package A
Project for the Public Works Department. This will result in a five-year amended
agreement with a new total amount not to exceed $47,000,000;
2. Award RFP#SP2396 to Twining Consulting, a California-based company, to
provide deputy and material testing inspection services for the City Yards
Modernization for the Public Works Department;
3. Authorize the City Manager to negotiate and execute an agreement with Twining
Consulting in an amount not to exceed $888,216 (including a 20% contingency)
over a four-year period;
4. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within contract authority.
5. Adopt a Resolution Declaring the City’s Intent to Reimburse Expenditures from
the Proceeds of Obligations to be Issued by the City of Santa Monica, a Related
Party or Other Affiliate, and Approving Certain Related Actions.
Executive Summary
After more than a decade of planning, the City is poised to initiate construction of the
first phase of the City Yards Modernization Project.
The City Yards, located at 2500 Michigan Ave., is a 14.7-acre site owned and operated
by the City of Santa Monica. For 70 years, the City Yards has served as the City’s
primary base for City maintenance services, including Water; Resource Recovery and
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Recycling; Fleet Maintenance; Fire Training as well as storage facilities; and other
industrial uses since the 1940s. Over that time, Santa Monica’s population and
workforce have grown, there have been consistently increasing updates in technology,
and the City has completely overhauled the equipment and practices used for ser vicing
our citywide infrastructure.
Simply put, the City Yards is the heart of our public works functions – and this
overworked 70-year-old heart is long overdue for major surgery.
While there have been a series of piecemeal updates to the Yards, over the years the
site has become woefully outdated, unsafe and a poor fit for today’s operational
demands. This impairs operational efficiency and productivity. Modernizing the City
Yards will facilitate improved service to the community replacing outdated facilities with
ones that are designed for the needs of today and the decades ahead. It will also
enable the Yards to be better neighbors to the surrounding industrial, commercial and
residential areas in the vicinity by opening up portions of the facility to the community
through modern design.
The City Yards Modernization Project involves phased demolition of the existing
structures and construction of new buildings on the site to improve operating efficiencies
through co-location of staff who are currently scattered among several buildings
throughout the site; reconfiguring site circulation for the safety of people traveling on-
site by all transit modes; advancing sustainability initiatives through a goal of Net Zero
Energy use and Net Zero Water use (e.g., no increase in energy or water use);
enhancing community resilience by having facilities that meet current building
standards; and providing an asset that enhances the neighboring community by
opening up Michigan Avenue in line with the Michigan Avenue Greenway Plan .
Additionally, the new Administration building will include a public counter that will serve
as a one-stop shop for community members to request services, pay fees for goods and
services and conduct operations-related business (block party approvals, composting
bin purchases, construction waste management plan review, etc.).
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On October 25, 2016, the City Council authorized the City Manager to execute a
contract with Hathaway Dinwiddie Construction Company for design services for the
City Yards Modernization – Package A (CYM) in the amount not to exceed $10,000,000
(including an 8% contingency).
Although a final design and guaranteed maximum price will not be available until the
latter part of the year, staff recommends executing a first amendment to the GMP
contract with Hathaway Dinwiddie to start construction services for CYM – Package A.
This work would involve laying underground foundations and site utility work in the
amount of $37,000,000 (includes contingency) for a total contract amount not to exceed
$47,000,000. By moving forward with this early scope ahead of completing the full
design, the project timeline is reduced by six months, which is estimated to save $4 to
$5 million in construction market escalation costs. While construction is proceeding, the
design-builder will complete the design documents and staff will negotiate a final GMP
amendment 2 covering the complete costs for construction. Staff anticipat es
recommending GMP amendment 2 by December 2019. In addition, staff recommends
Twining Consulting to provide deputy and material testing inspection services in an
amount not to exceed $888,216 (including a 20% contingency).
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Background
The City took ownership of the site in the 1940s and constructed three buildings to
house City Yards operations. Buildings included a small garbage transfer station and
gas station, an auto repair and maintenance shop with two vehicle lifts, and a broom
repair and blacksmith shop. Facilities shops, crew space and administrative space were
sized to accommodate the staffing levels at the time, which were significantly lower than
present-day levels. The balance of the site was occupied by a warehouse and open
equipment storage bays. When additional shop, maintenance, or office space was
needed, the existing warehouse and open equipment storage bays were converted and
reconfigured to accommodate these needs. This reconfiguration of old buildings is the
result of a decades-long process of “making do” with a facility that the City outgrew
many years prior. This property has been used as a base for a majority of the City’s field
maintenance operations, storage facilities, and other industrial uses since that time.
Recognizing the need for a new vision of the City Yards, City Council directed staff to
prepare a master plan for the site in 1996. Several iterations and updates were
prepared over the subsequent 19 years, and in 2015 Council approved the City Yards
Master Plan and directed staff to proceed with the selection of a design-build team to
begin implementation. In July 2016, staff presented to Council the feasibility analysis
and concept design for implementing the first phase of the masterplan along with the
financial options based on a project cost of $114 million. By October 2016 Council
directed staff to proceed with the design phase of the project, which also triggered the
formal review of the environmental impacts of the project. The Environmental Impact
Report was certified by the Planning Commission in January 2019.
Past Council Actions
10/08/96
(Attachment A)
Recommendation to Authorize the City Manager to
Negotiate and Execute a Professional Services Contract for
the Preparation of a Master Plan for the Corporation Yard
10/24/00
(Attachment B)
Recommendation to Approve in Concept Two Proposed
Corporation Yards Master Plan Alternatives
10/13/09
(Attachment C)
Corporate Yard Master Plan Design Contract
12/16/14 Professional Services Agreement for Corporation Yards
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(Attachment D) Parking Study
01/27/15
(Attachment E)
City Yards Masterplan Approval
07/28/15
(Attachment F)
Professional Services Agreement for Concept Design and
Feasibility Analysis for the City Yards Stage I
05/24/16
(Attachment G)
Consultant for Mulituser Microgrid Design Services under
California Energy Commission Grant
07/12/16
(Attachment H)
City Yards Modernization Concept Design Recommendation
10/25/16
(Attachment I)
Award Design Contract for the City Yards Modernization
Project
01/10/17
(Attachment J)
Award of Agreements for Surveying Services and
Environmental Consulting Services at the City Yards
Discussion
The existing buildings at the City Yards range in age, with the oldest structures being in
place for over 70 years. Most of the buildings have been converted from their original
intended uses, and several buildings are temporary structures that are now permanently
housing critical City operations. The buildings at the City Yards do not meet current
code requirements for seismic safety, fire safety, or energy and water use. In addition,
because the City Yards has been modified and expanded over the years in a piecemeal
fashion to address changing operational needs, the site does not adequately provide
safe working space for the approximate 300 staff members currently occupying the site,
does not provide safe pedestrian and vehicular circulation, and does not meet the
storage and space needs for the current operations at the site, which include the
following:
• Facilities Maintenance (trades shops)
• Custodial Services
• Street Maintenance
• Fleet Maintenance
• Traffic Operations
• Resource Recovery and Recycling (RRR)
• Water and Wastewater Operations
• Household Hazardous Waste Disposal
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• Printshop
• Fire Department Training Area
• Rosie’s Girls
• Recycling Collection and Transfer Facility (operated by a private vendor)
Package A Scope of Work
On July 12, 2016, the City Council approved the City Yards Master Plan, which
encompasses the entire 14.7-acre City Yards area. Staff intends to implement the
Master Plan in three phases over the next decade. This contract amendment with
Hathaway Dinwiddie is for partial construction of Package A, the first phase of the
Master Plan. Package A is an irregularly shaped portion in the center of the parcel
consisting of 6.76 acres (294,656 square feet) out of the total 14.7-acre parcel and
indicated by the aqua / blue border shown in Figure 1 below.
Figure 1: City Yards Modernization Project – Package A Site Plan
Package A includes demolition of 13 existing structures and construction of six new
buildings totaling 56,137 square feet, a covered fuel island, and 147 parking spots for
City vehicles.
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The Administration building (11,737 sq. ft., 17-19 ft. In height) will consolidate staff from
Facilities Maintenance, RRR and Street Maintenance into an efficient, open-plan office.
This is in line with how the City Services Building and all new staff workplaces are being
designed to foster collaboration and implement 21st Century Governance. The building
will incorporate a welcoming public plaza and lobby that will serve as the main point of
contact for the community, as well as a new gender-universal locker and shower facility
that is available to all city staff.
The Fleet building (30,949 sq. ft., 35 ft. in height) provides a series of several well-lit
service bays and is a larger volume space to allow for vehicle lifts and associated
service equipment. Offices and crew facilities on a partial second floor include windows
to provide views into the service bays for supervisors to monitor work activity. The
building is lower in height along Delaware Street to house parts and equipment storage.
The four Facilities buildings (2,800 sq. ft. each, 17-19 ft. in height) will house the
following:
• Facilities 1: Employee Lunch Room/Community Meeting Room
• Facilities 2: Rosie’s Girls Camp/Community Program and Meeting Space
• Facilities 3: Carpentry Crew Workshop
• Facilities 4: Paint Crew Workshop
The buildings alternate with working courtyards along Michigan Avenue, increasing
permeability and allowing views into the City Yards. The buildings will be built farther
from the property line to accommodate wider sidewalks and the planting of shrubbery
and trees along the street will improve the pedestrian experience. The east and west
facades allow daylight and views into the shops from the street, and the courtyards are
covered by large solar panels.
Project Benefits
The City Yards project provides the operational, functional, and employee safety
improvements necessary to provide exemplary service in a state-of-the-art facility, while
also improving the public experience and implementing extensive sustainability
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strategies. The design responds to the “working yards” nature of the facility and uses
durable, industrial materials in a thoughtful and appropriate manner that recognizes the
project as an important civic institution. Understanding the transitioning nature of
Michigan Avenue and the future improvements being contemplated at Bergamot
Station, the project will provide an open, inviting public realm along the street that
integrates more meaningfully with the community, which was expressed as a desire by
the community during the design process.
The City Yards Master Plan identified a number of opportunities to improve the
infrastructure and operations of the existing site:
1. The existing facilities are outdated and unsafe.
• The existing structures are not seismically sound. As the hub of the City’s
operations, City Yards structures must be able to continue operating in the
aftermath of an earthquake.
• The existing structures do not meet current occupational health and safety
(OSHA) requirements or fire/life/safety standards (e.g., lack of fire sprinklers,
inadequate emergency exits, inadequate fall protection for maintenance
workers), putting staff at risk. The new structures at the City Yards are being
designed to meet all OSHA and fire/life/safety standards to ensure a safe,
healthy work environment for City staff and visitors.
• Currently there is no central locker room, which requires field staff to access
showers and restrooms in different areas of City Yards and change into their
work clothes in their work areas. Female field staff have inadequate restroom
facilities and only one shower on-site. The project includes construction of a
new, centralized, gender-universal locker room and shower facility available
equally to all city employees.
• Through the master-planning process, the City has analyzed the current and
future space needs of critical City maintenance and operational functions. The
new City Yards facilities are being appropriately sized to meet the City’s
current and future service requirements. The site will continue to host
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programs such as Rosie’s Girls Camp, the Trades Intern Program, free
compost giveaways, and community shredding events.
2. The City Yards Modernization Project will improve the customer experience and
promote operational efficiencies.
• The current site can be confusing and unwelcoming to both the public and
staff unfamiliar with the City Yards. The lack of clearly defined boundaries
between large industrial vehicles and pedestrians poses a risk to everyone.
By significantly improving site circulation and creating protected pedestrian
pathways, the project will establish a safe environment for all who visit.
• Currently, community members must go to various buildings or trailers at the
City Yards to conduct business. The new administration building will bring all
the administrative groups together under one roof to increase collaboration
and productivity among operating divisions and will include a public counter
(one-stop shop) where community members can request services, pay fees
for goods and services and conduct operations-related business (e.g., block
party approvals, composting bin purchases, construction waste managem ent
plan review, etc.).
• One of the proposed buildings along Michigan Avenue is designated as an
afterhours community space that will include a meeting room, kitchen,
restroom and outdoor covered courtyard, all of which will be available for use
by reservation to residents and community groups. Additional community
events educating the public on the zero-waste initiative and water self-
sufficiency goals are envisioned to take place in the new community meeting
room.
3. The City Yards Modernization Project contains features that will move the
community closer to its sustainability goals.
• The existing site is almost entirely impermeable, capturing none of the storm
water runoff. The project involves construction of an underground tank that
can hold up to 140,000 gallons of storm water runoff, and a purification
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system that will allow for reuse of the storm water for landscape irrigation and
flushing toilets. This will improve beach water quality by preventing storm
water at the City Yards from draining into the Santa Monica Bay and will
significantly reduce the water demand of the facility, helping the City to
achieve its goal of water self-sufficiency by 2023.
• The existing buildings do not have high efficiency electrical or mechanical
systems. By combining efficient, new building design with solar components,
the City will be able to pursue buildings that can produce as much energy as
they consume.
Project Status
The CYM Project was bid and contracted by the City as a design-build or integrated
project. This means the designers and construction team are coordinating early and
throughout the design phase, resulting in savings during the construction phase. In
addition, staff is proposing a “fast-tracked” project delivery process where demolition,
site utility relocation, and construction of underground foundations proceed prior to
completing the full design of the project. This would reduce the overall project timeline
by six months, which would save the City in excess of $4 million by avoiding
construction market escalation costs.
The authorized budget for the design and construction of the CYM Package A remains
at the previously approved amount of $114,621,195. The updated total budget of the
project, explained in more detail in Table 1 below, has been revised to include the grant-
funded Microgrid Design Study and the City-mandated allocation to the Percent for Art
Program that were not part of the original project scope.
Table 1: Cost Breakdown
Description Council
Date
City Yards
Modernization
Project– Package A
Feasibility Study 7/12/16 $970,200
Design-Build: Design Services 10/25/16 $10,000,000
Design-Build Amendment 1: Construction 5/28/19 $37,000,000
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GMP (Foundation and Site Work Only)
Design-Build Amendment 2: Construction
GMP (Complete Package A)
Anticipated
12/10/19
$60,000,000
Direct Owner Costs (miscellaneous
expenses such as inspections and other
unforeseen work needed)
Various $6,650,995
Project Sub-Total $114,621,195
Microgrid Design Study* 1/10/17 $372,857
Percent For Art* TBD $1,140,000
Grand Total $116,134,052
*Separate deliverables not included as part of the original project scope
Staff recommends amending the existing contract with the Hathaway Dinwiddie design -
build team for GMP amendment 1, construction services for laying underground
foundations and site utility work, to capitalize on the construction savings to be realized
from the design-build and fast-tracked processes. While construction begins, the
design-builder will complete the design documents and negotiate a final GMP
amendment 2 with staff covering the complete costs for construction. Staff anticipates
recommending GMP amendment 2 by December 2019. At that time, the source of
additional funding will be identified as well.
Alternatives
While staff is confident that the project can be delivered within the approved budget
through a fast-tracked project delivery process, authorizing GMP amendment 1 includes
inherent risk because the final cost of the project will be uncertain until final design is
completed, which will not occur until after GMP amendment 1 work is authorized.
Should the City Council prefer the cost certainty of a completed design package and
total cost of construction, the Council could defer moving forward at this time. In that
scenario, staff would spend the next six months completing the design and negotiating a
final construction price with the contractor. Staff would then come back to the City
Council in December of 2019 to ask for approval of a GMP for all construction services
and issuance of lease-revenue bonds. Due to construction escalation in the current
market, staff anticipates a delay in the start of construction would increase the total cost
of construction between $4 to $5 million.
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Adopting this more traditional approach would mean that depending on how much
higher the final numbers are, staff would then have to work with the contractor to
eliminate additional elements from the scope of the project to bring the cost back within
the Council-approved budget.
Public Engagement
Public input has played an important part in shaping the master planning process. In
total, the City Yards project has held seven community meetings to gather input and
provide community updates to the process, as well as being discussed at eight public
boards, commissions, and council meetings over the past four years.
In early 2016, staff held two community meetings for the City Yards Modernization
feasibility analysis and concept design recommendations. On February 1, 2016, the
design-build team and City staff held the first community meeting at Virginia Avenue
Park to present the project vision and goals for improving the essential City services
based out of the City Yards facilities. The purpose of this initial community outreach
meeting was to provide information about the project, answer questions, and collect
public input in general and from members of the adjacent community near the City
Yards. Attendees had an opportunity to discuss their ideas along with their responses to
the project’s goals. The design-build team documented the public comments received
and attempted to visualize and prioritize these comments. The intended outcome was to
understand what the community wants (or doesn’t want) in the development of the
project. The following are some of the specific comments from the community:
• Provide learning programs for broader groups
• Consciousness of the level of disruption to the neighbors
• Provide opportunities for public art
• Connection to adjacent neighborhood to northeast/ provide connection from the
mobile home park to Bergamot
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• Mindfulness of overlap between pedestrians / cars / heavy equipment moving in
and out of site
• Allow for more visibility into the City Yards - celebrate the functions there
• Enhance Michigan Street - Street trees, planting buffer
• Community Room
• Provide more space to Rosie’s Girls (a community program)
• Pursue net-positive energy
• Produce electricity for the neighborhood
• Focus on opportunities for water re-use
• Greater operational efficiency to conserve resources
• Composting opportunities
The results of the first community meeting influenced the City Yards concept designs,
and as a follow-up, a second community meeting was held on March 16, 2016. The
design-build team and staff presented the updated concept design options, and the
community offered more feedback based upon their evaluation of these options. Based
on this community feedback, the design response features greater emphasis on
creating a visually open site that allows the public to view City Yards operations in
action.
On October 24, 2016, a third community meeting was held to discuss additional options
for the master plan. This meeting focused largely on the eastern portion of the property
and the possibility of bringing additional program elements to the City Yards site and
better ways to incorporate the project with the adjacent Gandara Park. Due to concerns
of local residents and evaluation of the feasibility along with associated costs of further
changes, additional programming options were not pursued.
One year later on October 12, 2017, staff attended a Pico Neighborhood Association
meeting to provide updates about the project, followed by a separate meeting with
residents of the Mountain View Mobile Home Park on October 17, 2017 to discuss the
same topic. On November 30, 2017, a public scoping meeting was held as part of the
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Environmental Impact Report (EIR) prepared for the project. This meeting was another
opportunity for the public to provide input and concerns related to the possible impacts
of the project.
Following these initial public input meetings and the preparation of the draft EIR
document, staff presented the CYM Package A designs at public meetings of the
Architectural Review Board (ARB) on September 28, 2018 and April 15, 2019, and the
Planning Commission on December 15, 2018 and January 16, 2019. In each of these
meetings, ARB Members and Planning Commissioners provided feedback that was
incorporated into the current design of the project . Both bodies supported the Package
A design, and the Planning Commission certified the project’s Environmental Impact
Report during the January 2019 meeting. In May 2019, an addendum to the certified
EIR was issued that studied the impacts of a recycling buyback center and a separate
recycling processing and transfer station being added into the master plan.
Public Works staff has already contacted the adjacent neighbors and will continue to
provide updates on timelines, setting expectations, and establishing lines of
communications for the duration of construction. The Public Works communications
team is also planning other outreach activities that include engaging with the public at
farmers markets, publishing a blog article on the City’s website to provide the
community with an overview of the project, submitting a know-before-you-go (KBUG)
notification in the Santa Monica Daily Press in the event that construction activities may
impact the public’s ability to travel or use the public right of way, and scheduling regular
social media posts about the project. Finally, Public Works staff will collaborate with
Community and Cultural Services (CCS) staff throughout the remaining design process
to collect public input and feedback on the project’s public art component.
Environmental Status
The City Yards Master Plan Final EIR [SCH #2017111053] was certified by the Planning
Commission on January 16, 2019.
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Consultant Selection – Deputy and Material Inspection Services
RFQual Data
RFQual Posting Date RFQual
Posted On
RFQual Advertised
In
(City Charter &
Municipal Code)
# of Vendors
Downloaded
# of
Submittals
Received
Date
Publicly
Opened
10/10/2017
City's
Online
Bidding
Site
Santa Monica Daily
Press 38 12 10/24/2017
Pre-qualified List Selection Criteria
AECOM
California
Testing &
Inspection
Municipal Code SMMC 2.24.073
CTE Group
Delta Evaluation Criteria
Training/credentials/experience, competence/skill,
ability to perform services promptly, sufficiency of
financial/other resources, character/reputation,
and price. Koury MTG
Ninyo &
Moore
Smith
Emery
Twining United
Heider
Wildan
Justification to Short-List
Responses to the RFQ were reviewed by a selection panel of staff from the Public
Works Department. Staff selected 11 firms as pre-qualified and eligible to compete in
future bids over a three-year period; the pre-qualified list will expire on November 14,
2020.
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RFP Data
RFP Posting Date RFP Posted
On
RFP
Advertised In
(City Charter
& Municipal
Code)
# of
Vendors
Downloaded
# of
Submittals
Received
Date Publicly
Opened
03/22/2019 City's Online
Bidding Site N/A 4 3 04/09/2019
RFPs Received Selection Criteria
AECOM
Municipal Code SMMC 2.24.073
United Heider
Evaluation
Criteria
Training/credentials/experience, competence/skill,
ability to perform services promptly, sufficiency of
financial/other resources, character/reputation,
and price.
Twining
Justification to Award
Twining’s proposal included wide-ranging experience and demonstrated the competency
of their team of registered Civil and Geotechnical Engineers and numerous inspectors
holding multiple certifications. Twining’s proposal also included their reputable corporate
structure and excellent references on prior completion of similar projects. Based on this
criteria and criteria in SMMC 2.24.073, staff recommends Twining Consulting as the best
qualified firm to provide deputy and material testing inspection services for the City Yards
Modernization Project.
Project and Public Outreach Schedule
Key upcoming milestones of the project and public outreach effort are listed below.
1. June 11, 2019 – Present to City Council a proposal for a first amendment to the
contract for the construction of underground foundations and site utility work.
Continue public outreach to notify the community of the potential upcoming
construction project, provide staff contact information during construction and
answer frequently asked questions. Staff intends to continue public outreach
efforts until the end of construction so that the community can raise questions or
concerns regarding the ongoing progress of the construction phase of the
project.
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2. July 1, 2019 – Pending Council approval, begin demolition and construction of
underground foundations and site utility work along the southern portion of the
facility, adjacent to Delaware and Frank streets.
3. Fall 2019 – Complete final design and pricing for all scopes of work.
4. December 2019 - Request Council approval of a second amendment for all
remaining construction services and issuance of the lease-revenue bonds.
5. End of 2023 – Complete construction of the City Yards Modernization – Package
A Project.
Financial Impacts and Budget Actions
Staff seeks authority to increase the amount of the GMP agreement with Hathaway
Dinwiddie for construction services for CYM – Package A.
GMP Agreement Modification Request
Agreement # Current Authorized
Amount
Modified Request
Amount
FY 2018-19 Budget
CIP Account #
Total Revised
Contract Amount
10371 $10,000,000 $37,000,000 C0105410.689000 $47,000,000
Future year funding is contingent on Council budget approval.
Staff is recommending executing the underground foundations and site utility scope now
to capitalize on current construction rates using the existing budget already
appropriated. Staff anticipates returning to Council in December 2019 for GMP
amendment 2 that will contract for the full scope of completing Package A , identify the
recommended funding sources, and request budget appropriations for the remaining
$64,640,000 required to complete the project.
Funding for GMP amendment 2 is expected to be provided through the issuance of
Lease Revenue Bonds by the Santa Monica Public Financing Authority together with
budget appropriations from certain City enterprise funds. A final financing plan for the
remaining Package A costs and request to approve the issuance of Lease Revenue
Bonds will be presented to the City Council in December 2019 or early 2020. US
Treasury Regulations require that in order for the City to use tax-exempt bond proceeds
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to reimburse expenditures made prior to the issuance of the bonds the City must first
declare its official intent to do so. As the City will be incurring construction expenditures
on the Project in advance of bond issuance, reimbursement of some amount of prior
expenditures could be a component of the financing plan. Approval of the Resolution of
intent to use the bond proceeds for reimbursement at this time will provide the flexibility
to structure the use of bond proceeds in the most efficient manner.
Prepared By: Sebastian Felbeck, Senior Construction Manager
Approved
Forwarded to Council
Attachments:
A. October 10, 1996 Staff Report (Web Link)
B. October 24, 2000 Staff Report (Web Link)
C. October 13, 2009 Staff Report (Web Link)
D. December 16, 2014 Staff Report (Web Link)
E. January 27, 2015 Staff Report (Web Link)
F. July 28, 2015 Staff Report (Web Link)
G. May 24, 2016 Staff Report (Web Link)
H. July 12, 2016 Staff Report (Web Link)
I. October 25, 2016 Staff Report (Web Link)
J. January 10, 2017 Staff Report (Web Link)
K. Hathaway Dinwiddie Construction Oaks Initiative Disclosure Form
L. Twining Consulting Oaks Initiative Dislcosure Form
M. Reso - PW - City Yards - Modification - 06.11.2019
N. City Yards Plans and Renderings
O. PowerPoint Presentation
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City Council Meeting June 11, 2019 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA DECLARING THE CITY’S OFFICIAL INTENT TO
REIMBURSE EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS TO BE
ISSUED BY THE CITY OF SANTA MONICA, A RELATED PARTY OR OTHER
AFFILIATE, AND APPROVING CERTAIN RELATED ACTIONS
WHEREAS, the City of Santa Monica, California (the “City”), or an affiliate or
related party to the City, including the Santa Monica Public Financing Authority (any such
party, including the City, the “Issuer”), expects to undertake the construction and
development of the City Yards project (the “Project”), using revenues, proceeds from
bonds or other borrowing, and/or other funds; and
WHEREAS, the Issuer expects to pay certain expenditures related to the Project
prior to the issuance of debt (such expenditures, the “Reimbursement Expenditures”); and
WHEREAS, the Issuer reasonably expects to issue obligations in an amount not
to exceed $65,000,000 (the “Obligations”) and to use all or a portion of the proceeds of
the Obligations to reimburse the Reimbursement Expenditures that are paid before the
date of issuance or delivery of the Obligations; and
WHEREAS, United States Treasury Regulations Section 1.150-2 provides
generally that proceeds of tax-exempt obligations are not deemed to be expended when
such proceeds are used for reimbursement of expenditures made prior to the date of
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issuance of such obligations unless certain procedures are followed, among which is a
requirement that (with certain exceptions), prior to the payment of any such expenditure,
the issuer must declare its official intent to reimburse such expenditure with proceeds of
such obligations; and
WHEREAS, it is in the public interest and for the public benefit that the City declare
its official intent to use all or a portion of the proceeds of the Obligation s to reimburse the
Reimbursement Expenditures that are paid by the Issuer before the date of issuance of
the Obligations; and
WHEREAS, proceeds of the Obligations will be allocated to the Reimbursement
Expenditures no later than eighteen (18) months after the later of (i) the date the cost is
paid, or (ii) the date the Project (or each component thereof) is placed in service or
abandoned, but in no event more than three (3) years after the cost is paid.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SANTA MONICA AS FOLLOWS:
SECTION 1. The above recitals are true and correct.
SECTION 2. The City hereby declares its official intent to use all or a portion of
the proceeds of the Obligations to reimburse the Reimbursement Expenditures that a re
paid before the date of issuance of the Obligations.
SECTION 3. The City hereby declares that it reasonably expects (i) to pay the
Reimbursement Expenditures prior to the date of issuance of the Obligations and (ii) to
use all or a portion of the proceeds of the Obligations for reimbursement of the
Reimbursement Expenditures that are paid by the Issuer before the date of issuance of
the Obligations. This declaration is made solely for purposes of establishing compliance
3
with the requirements of United States Treasury Regulations Section 1.150-2. This
declaration does not bind the City or the Issuer to make any expenditure, incur any
indebtedness, or proceed with the Project.
SECTION 4. All actions heretofore taken by the officers, employees and agents
of the City with respect to the actions set forth above are hereby approved, confirmed and
ratified.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
LANE DILG
City Attorney
CITY COUNCIL PRESENTATION
JUNE 11, 2019
RECYCLING VENDOR
PW ADMINISTRATION