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HomeMy WebLinkAbout09 - Reimbursement to Hoag for Superior Ave. Median ImprovementsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 9 September 8, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Andy Tran, P. E. 949 - 644 -3315 or atran @newportbeachca.gov SUBJECT: REIMBURSEMENT AGREEMENT WITH HOAG MEMORIAL HOSPITAL PRESBYTERIAN FOR SUPERIOR AVENUE MEDIAN IMPROVEMENTS Recommendation: 1. Approve the Public Improvement Funding Reimbursement Agreement with Hoag Memorial Hospital Presbyterian (Hoag) for the Superior Avenue Median Improvements. 2. Approve a budget amendment to appropriate $52,802.94 from the General Fund reserve account to reimburse Hoag for the City's fair share cost for the Superior Avenue median extension. Discussion: The City developed conceptual landscape improvement plans for Superior Avenue in early 2007. The plans involved the construction of new raised landscaped medians on Superior Avenue from Coast Highway to the north City limit. At the same time, Hoag was also in the process of redeveloping the property at 500 -540 Superior Avenue, which is located within the City's landscape improvement project. To avoid conflict with Hoag's redevelopment project, the City decided to construct the landscaped medians in two phases. Phase 1 starts at Coast Highway and ends at Dana Road, just south of Hoag's redevelopment project. The City awarded this phase of work to GMC Engineer, Inc. on September 25, 2007. Construction was completed in March 2008. Phase 2 starts at Dana Road and ends at the north City limit. Hoag contracted with Hillcrest Contracting to construct Phase 2 under an encroachment permit. Approximately 6,020 square feet of raised landscaped medians was built as part of this phase, of which 4,297 square feet was along Hoag's property frontage. The remaining 1,723 square feet (29 percent of total) was beyond Hoag's property. The total construction cost associated with the landscaped medians was $182,079.10. The City's fair share cost at 29 percent equates to $52,802.94. Phase 2 was completed in July 2009 to the satisfaction of the Public Works Department. Hoag Superior Ave. Median Imp. September 8, 2009 Page 2 As part of a development agreement between Hoag and the City, Hoag was required to acquire the necessary right -of -way, install a new traffic signal, and construct the landscape medians in the area adjacent to Hoag's property frontage. The City and Hoag entered into a Development Agreement for development of the Hoag Hospital main campus, through which Hoag agreed to pay the City a public benefit fee of $3,000,000, which has been received and deposited into the City s General Fund account. The parties agreed that a portion of these funds could be used for the medians. Environmental Review: The Planning Commission certified the EIR for the Hoag Healthcare Center project on January 17, 2008. Public Notice: Not required. Funding Availability: Upon approval of the recommended budget amendment, sufficient funds will be available. Reimbursement for the Superior Avenue median extension will be made in the form of a City check payable to Newport Beach Healthcare, LLC. Prepared by: Andy Tran, P.E. Senior Civil Engineer Submitted by: Public Works Director Attachments: 1. Public Improvement Funding Reimbursement Agreement Budget Amendment PUBLIC IMPROVEMENT FUNDING REIMBURSEMENT AGREEMENT (Superior Avenue Medians) This Public Improvement Funding Reimbursement Agreement ( "Agreement ") is made to be effective on May 8, 2009 by and between Newport Beach Healthcare Center, LLC, a California limited liability company and an affiliate entity of Hoag Memorial Hospital Presbyterian ( "Hoag "), and the City of Newport Beach, a California chartered municipal corporation ("City"). Hoag and the City are each sometimes referred to herein individually as a "Party" and, collectively, as the "Parties." The Parties are entering into this Agreement with reference to the following facts: RECITALS A. Hoag is the owner of property known as Hoag Health Center — Newport Beach located -at 500 Superior Avenue in the City proposed to be developed with medical offices, healthcare and out patient clinical services facilities ( "Hoag Health Center "). B. As a condition of Hoag's Use Permit No. 2006 -10, for development of Hoag Health Center, the City has required Hoag to construct a traffic signal on Superior Avenue at the entrance to the Hoag Health Center to facilitate pedestrian and vehicular ingress and egress access to the Hoag Health Center (the "Traffic Signal "). C. Construction of the Traffic Signal has required Hoag to also pay for the construction of the Superior Avenue median extension from Dana Road to the northerly City boundary as shown on Exhibit "A" attached and made a part of this Agreement by this reference ( "Superior Median Extension "). Hoag has retained a general contractor and subcontractors and has paid all costs of labor and materials to construct the Superior Median Extension as shown on Exhibit `B" attached and made a part of this Agreement by this reference. D. City and Hoag propose to set forth in this Agreement the City's proportionate share of the costs associated with the Superior Median Extension to be reimbursed by the City to Hoag. AGREEMENT Based on the foregoing recitals and for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties hereby agree as follows: 1. Incorporation of Recitals. City and Hoag accept the above recitals as true and correct and incorporate them herein as if they were fully restated in this Agreement. 2. City Reimbursement. Upon execution of this Agreement by the parties or within a reasonable time thereafter, City shall pay Hoag the sum of $52,802.94 (calculated to be 29 percent) as the City's fair share of the costs of the Superior Median Extension. Said payment shall be in the form of a City check made payable to Newport Beach Healthcare, LLC and mailed or delivered to Sanford Smith, c/o Hoag Memorial Hospital Presbyterian, One Hoag Drive, P.O. Box 6100, Newport Beach, CA 92658 -6100. 3. General Provisions. This Agreement constitutes the entire agreement between the Parties hereto pertaining to the subject matter hereof and all prior and contemporaneous agreements, representations and understandings of the Parties hereto, oral or written, are hereby superseded and merged herein. No supplement, modification or amendment of this Agreement shall be binding unless in writing and executed by the Parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions, whether or not similar, nor shall any waiver be a continuing waiver. No waiver shall be binding unless executed in writing by the Party making the waiver. This Agreement shall be construed and enforced in accordance with, and governed by, the laws of the State of California. In the event of any dispute hereunder, the sole and exclusive venue shall be in a court of competent jurisdiction in Orange County, California, and the Parties agree to submit to the jurisdiction of such court. The headings of this Agreement are for purposes of reference only and shall not limit or define the meaning of the provisions hereof. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. This Agreement may be amended or modified only in writing executed by the authorized representative(s) of each Party. The Parties to this Agreement agree to complete and execute any further or additional documents which may be necessary to complete or further the terms of this Agreement. 4. Status of the Parties. This Agreement is not intended to create, and nothing herein contained shall be construed to create, an association, a trust, a joint venture, a partnership or other entity of any, kind, or to constitute either Party as the agent, employee or partner of the other. 5. Prenaration of This Agreement. This Agreement shall not be construed against the Party preparing it, but shall be construed as if both Parties prepared it. 6. Successors and Assigns: Covenants Running with the Land. This Agreement shall inure to the benefit of the Parties hereto and their respective successors and assigns. 7. Signatories. The signatories executing this Agreement represent that they are authorized to enter into this Agreement on behalf of the Party for whom they sign. [Signature page follows] IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written. APPROVED AS TO FORM: By: ynett ea ch mp, Assistant City t iey for the City of Newport Beach ATTEST: IN Leilani I. Brown, City Clerk for the City of Newport Beach 3 CITY OF NEWPORT BEACH, A Municipal Corporation M. Edward D. Selich, Mayor for the City of Newport Beach "HOAU' NEWPORT BEACH HEALTHCARE CENTER, LLC, a California limited liability company and an affiliate entity of Hoag Memorial Hospital Presbyterian MM Richard Afable, M.D, President and CEO "+ ,! 1723 SA, r . " "+Gt ri� "EFi �(N, y�p�af. , Y j •"` ..'i O. T• J 4 "f , .4 ..a° y; �w ..�W Y ,7 "'# R! I�. /�N, t .. h t� t \� � ��'" A �,_ Sr !x +y�fiq !•y.' �j%j�ie w S� e r ;� ne r ��; ?tt. Yom. ,✓'i 'I�� ?� ':.y � gq HOA La:.n S.F.w e�4s Q L � M�4 l t XA r • M F F +rk Hoag Superior Medians Total Madan Area 8020 S.F. City's Portion IT]3 S.F. v Rr City's Percentage 29. 96 aW:..f. '� .. v�•xo- L; EXHIBIT "B" SUPERIOR AVE MEDIANS - HOAG RN ITEM DESCRIPTION QUANTITY UNIT $ AMOUNT 1 Mobilization 1 LS $6,673.10 2 Traffic Control I LS $3,600.00 f Survey 1 LS $1,400.00 4 Clear & Grub 1 LS $9.200.00 $9.200.00 5 Solid Removals 1 LS $5,300.00 R, S ".. q13 OQ 6 Excavation 1 LS $13,631.00 7 AC Paving 1 LS $11,982.00 $11,982.00 8 Agg.Base 368 TN $57.00 $20.976.00 9 Driveways 1,091 SF $10.00 $10,910.00 10 Sidewalk 1,417 SF $9.00 $12.753.00 11 Curb & Gutter 336 LF $24.00 $8,064.00 12 Relocate Water Items I LS $15,500.00 $15,500.00 13 Median Curb 1,590 LF $14.50 i � 4r j 14 Median To Soil 600 CY $38.00 _3 Q12 M (OU 15 Bore 4" PVC 400 LF $2800 1-0 — 16 Stripinq 1 LS $8,700.00 $8,700.00 — 17 Signal 1 LS $160,989.00 $160,989.00 18 Landscape & Irrigation 1 LS $74,429.00 ;1j" 19 Construct Islands in 2 move-ins 1 LS $111605 a 00 - 20 Remobilization and Plants 1 LS $8,386.00 Total $441,153.10 City Portion (29%) RN City of Newport Beach BUDGET AMENDMENT 2009 -10 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: NO. BA- 10BA -010 AMOUNT: $5z,eaz.sa Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance To increase expenditure appropriations from Hoag Development Agreement Reserves for the City's fair share cost for the Superior Avenue median extention. ACCOUNTING ENTRY: BUDGETARYFUND BALANCE .Fund Account Description 010 3788 General Fund - Reserve: Hoag Devpmnt Agrmnt REVENUE ESTIMATES (360 1) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Description Signed: Signed: G Director Amount Debit Credit $52,802.94 $52,802.94 -'zD Date _ rity�CpLerflApproval, C' ;ilyrlerk _ Date d Description Division Number 7013 Streets Account Number C5100870 Superior Ave Median Improvements Division Number Account Number Division Number Account Number Division Number Account Number Signed: Signed: G Director Amount Debit Credit $52,802.94 $52,802.94 -'zD Date _ rity�CpLerflApproval, C' ;ilyrlerk _ Date d