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HomeMy WebLinkAbout1999-08-04 - AGENDA REPORTS - GV RD GV HIGH SCHOOL FUNDING (2)CITY OF SANTA CLARITA AGENDA REPORT NEW BUSINESS City Manager Approval: — AV Item to be presented by: Anthony J. Nisich DATE: August 4, 1999 SUBJECT: INTERIM FUNDING AGREEMENT TO PROVIDE FOR THE FUNDING OF PRELIMINARY PROJECT EXPENSES FOR THE COMBINED GOLDEN VALLEY ROAD/GOLDEN VALLEY HIGH SCHOOL SITE GRADING CONSTRUCTION PROJECT (53016) DEPARTMENT: Transportation & Engineering Services RECOMMENDED ACTION City Council approve the Interim Funding Agreement between the City of Santa Clarita and the Education Foundation, subject to City Attorney approval; and direct staff to prepare a more comprehensive agreement for the administration and cost sharing of the combined Golden Valley Road and Golden Valley High School site grading construction project. BACKGROUND A development agreement between the Santa Clarita Business Park (SCBP) and the City was approved by the City Council on April 7, 1998 (Master Case No. 97-124, Development Agreement No. 97-001, Resolution No. 98-45, Ordinance No. 98-12), and recorded in the Office of the Los Angeles County Recorder on June 5, 1998 (Instrument No. 98-951356). Pursuant to that development agreement, SCBP agreed to acquire, design, and construct Golden Valley Road within Tract No. 42670-02 and southerly to Sierra Highway. Since the execution of the development agreement, the William S. Hart Union High School District is in the process of purchasing property along the Golden Valley Road corridor, north of Sierra Highway, and is planning to construct a new high school at this location. The plans for this new school facility have increased the urgency to begin construction on the road to access the school site. To meet the construction schedule dictated by the needs of the school district, it is necessary for the City to proceed as quickly as possible with the road project and to use available Eastside Bridge and Thoroughfare District funds for this construction. The urgency is due to the availability of State of California bond funds and the eligibility requirements for the school district. Agenda Item: INTERIM FUNDING AGREEMENT August 4, 1999 — Page 2 To take advantage of the economies of scale and to eliminate potential conflicts if the City road project and the school site grading were done by separate contractors and administered separately, staff proposes that the two projects be combined. The combined project would be administered by the City and paid for jointly by the City and the Education Foundation. The purpose of the Interim Funding Agreement is to provide funds to allow the project to proceed through the study, design, and bidding phases. A more comprehensive written agreement between the City and the Education Foundation will be created and approved by both parties in the future. ALTERNATIVE ACTIONS 1. Withhold approval of the Interim Funding Agreement and delay the construction until a complete agreement can be prepared and approved. 2. Withhold approval of the Interim Funding Agreement and request staff to prepare separate plans and specifications for the road construction work. 3. Other action as determined by the City Council. FISCAL IMPACT At this time, the total joint project construction costs are estimated to be $20 million. This figure includes a 15 percent contingency. Of the total construction costs, the portion for Golden Valley Road construction will be funded by the Eastside Bridge and Thoroughfare District fund, County B&T fees, and funds borrowed from other sources described in more detail in the Golden Valley Road Funding, Construction, and Acquisition Agreement report on this agenda. The construction cost for the Golden Valley High School site grading will be funded by the Education Foundation and William S. Hart Union High School District. Funds to allow the project to proceed to the bidding phase are required at this time in the amount of $300,000. Matching funds will be provided by the Foundation, and both amounts will be deposited into an escrow account for a total of $600,000. ATTACHMENTS Interim Funding Agreement TBT.ds council \ gv i ntrm$. doc