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HomeMy WebLinkAbout2/25/11 RDA AGENDA SPECIAL MEETING~AK~ ¢ rp-, SPECIAL MEETING 1. ROLL CALL 2. PUBLIC STATEMENTS 3. CONSENT CALENDAR 4. PUBLIC HEARINGS 5. REPORTS BAKERSFIELD REDEVELOPMENT AGENCY AGENDA SPECIAL MEETING OF FEBRUARY 25, 2011 Conference Room A, City Hall North 1600 Truxtun Avenue 10:00 A.M. a. Additional Legislative information regarding Governor Brown's proposal to eliminate Redevelopment in California, 6. DEFERRED BUSINESS 7. NEW BUSINESS a, Amendment No, 3 to Owner Participation Agreement No. RA08-014 with 19tn Street Senior Plaza LLC (in an amount not to exceed $500,000) for development of a parking structure. Staff recommends approval. b. Cooperation Agreement between the City of Bakersfield and the Bakersfield Redevelopment Agency (Old Town Kern-Pioneer Redevelopment Project Area) for the Sister City Gardens Project Phase I & II located near 18M Street and the Millcreek Plaza Millhouse for $1,494,451. Staff recommends approval of agreement, c. Cooperation Agreement between the City of Bakersfield and the Bakersfield Redevelopment Agency (Southeast Bakersfield Redevelopment Project Area) for future infrastructure improvements located at the South Millcreek Commercial Village and surrounding area to include the design, bidding, and construction of curb and gutter; parking area; traffic signs and signals; and median improvements in the amount of $325,744. Staff recommends approval of agreement. Staff recommends acceptance of bid and approval of contract. A ADMINISTRATIVE REPORT MEETING DATE: February 25, 2011 AGENDA SECTION: Reports ITEM: 5. q TO: Bakersfield Redevelopment Agency FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT H DATE: February 2, 2011 GENERAL COUI EXECUTIVE DIRE, SUBJECT: Additional Legislative information regarding Governor Brown's proposal Welirbiinate Redevelopment in California. RECOMMENDATION: No action required. BACKGROUND: Staff will provide a report on additional Legislative information regarding the current status of Governor Brown's proposal to eliminate Redevelopment in the State of California. S:\Admins\RDA\RDA Admins 2011 \Continued Legislative Update 022511.Docx 2/2/2011 3:54 PM C9 D~y B~ r Rs U ADMINISTRATIVE REPORT LIF MEETING DATE: February 25, 2011 AGENDA SECTION: New Business ITEM: C'\ TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L, Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: February 15, 2011 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Amendment No. 3 to Owner Participation Agreement No, RA08-014 w' h 1 h Street Senior Plaza LLC (in an amount not to exceed $500,000) for developm nt of a parking structure. RECOMMENDATION: Staff recommends approval. BACKGROUND: On August 25, 2008, the Bakersfield Redevelopment Agency entered into Owner Participation Agreement RA08-014 with 19th Street Senior Plaza, LLC to construct 19th Street Senior Plaza, 67 units of senior rental housing in a three-story structure, with a 160 space parking structure. The Agency's participation included $3.65 million of Redevelopment low-mod housing funds. The proposed project will be constructed on developer owned property immediately east of the Mill Creek Linear Park between 18th and 19th streets. The project is located in the Old Town Kern- Pioneer Redevelopment Project Area. In recognition of the difficulties in securing bank construction loans due to unfavorable market conditions, on September 14, 2009 the Agency entered into Amendment No. 1 to Agreement No, RA08-014. That amendment authorized the Agency to reimburse the Owner for development and construction costs before the Owner secured the bank construction loan. On August 18, 2010, the Agency entered into Amendment No. 2 to Agreement No. RA08-014. Recognizing that the Owner had encountered numerous obstacles in obtaining construction financing for this project, and that the difficulty was a direct result of the persistent economic crisis and the banks being unwilling to loan funds for commercial and residential development without significant equity, the Agency revised the terms of the Agency Financial Assistance for the development of the senior rental complex and the parking garage. With this proposed amendment, the Agency further desires to assist the Owner with the development of the parking structure by increasing the amount of redevelopment financial assistance in the amount of $500,000, Provide as a loan to develop due to banks evaluation and conservative appraisal, S:\Admins\RDA\RDA Admins 2011\19th Street Senior Amendment 3 022511.Docx February 15, 2011, 1:52PM p~ CO Q AN ~ W to s - 4 ADMINISTRATIVE REPORT IF MEETING DATE: February 25, 2011 AGENDA SECTION: New Business ITEM: I , 'In . TO: Bakersfield Redevelopment Agency FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: February 14, 2011 GENERAL EXECUTIVE D SUBJECT: Cooperation Agreement between the City of Bakersfield and the Bakersfield Redevelopment Agency (Old Town Kern-Pioneer Redevelopment Project Area) for the Sister City Gardens Project Phase 1 & II located near 18th Street and the Millcreek Plaza Millhouse for $1,494,451. RECOMMENDATION: Staff recommends approval of agreement. BACKGROUND: California Redevelopment Law allows any public body, including the City of Bakersfield, to aid and cooperate in the planning, undertaking, construction, or improvement of redevelopment projects (Section 33220 of the California Health and Safety Code). The Bakersfield Redevelopment Agency desires assistance and cooperation from the City in construction of Mill Creek Linear Park Sister City Gardens and Mill House. The Sister City Gardens involves new landscape improvements on two different site locations adjacent to Mill Creek Linear Park near 181h Street. The landscaping has been chosen to reflect the type of landscaping that reflects the Sister City culture and region that is being represented at each site. The Mill House will be a 19th Century style Mill House with an operational wheel in Mill Creek Linear Park at 171h Street. The Mill House will be the icon feature of Mill Creek Linear Park, creating a setting reminiscent of the historic flour mill formerly located in the same vicinity. The design plans are nearing completion and will be ready, to go out to bid in late March. For there to be sufficient funds to complete this project, Council will need to appropriate $530,000 from the Old Town Kern Redevelopment Fund Balance to the Capital Improvement Budget within the Old Town Kern Redevelopment Operating Fund. The project will be funded using several sources, as shown below: dl S:\Admins\RDA\RDA Admins 2011\Cooperation Agreement Mill Creek Sister City Gardens And Mill House 022511.Docx February 14, 2011, 10:30AM ADMINISTRATIVE REPORT Proposition 1 C funds Matching redevelopment funds: Old Town Kern previously budgeted funds - Prop 1C match Old Town Kern previously budgeted redevelopment bonds-Prop l C match New appropriation from Old Town Kern Redevelopment fund balance Total cost $1,526,200 $303,201 641,250 530,000 1,474,451 $3,000,651 The park costs of $3,000,651 is based on the design and engineering estimates completed for Phase 1 ($2,500,000) and a contingency for Phase 2 which includes 1 garden and green space on property currently being acquired adjacent to the park, Proposition 1 C funds were awarded to the Agency from the State of California last year. The State has assured staff these contractually obligated funds are not in jeopardy of being lost. The resolution associated with this item makes certain findings that the proposed improvements are consistent with both the Implementation Plan and the Redevelopment Plan for the Old Town Kern-Pioneer Redevelopment Project Area. The agreement associated with this item needs to be approved by both City Council and the Redevelopment Agency, City Council approved the agreement at its February 16, 2011 meeting. By approving this agreement, the City agrees it will construct the Mill Creek Linear Park Sister City Gardens and Mill House, and the Agency will reimburse the City for the actual costs incurred to construct those improvements. Approving this agreement will legally obligate the necessary remaining matching RDA funds for the project and allow the City to complete the design and construction of the project, dl S:\Admins\RDA\RDA Admins 2011\Cooperation Agreement Mill Creek Sister City Gardens And Mill House 022511.Docx February 14, 2011, 10:30AM BA OF~ewro~,r ~ ~ Cn ADMINISTRATIVE REPORT IF0 MEETING DATE: February 25, 2011 AGENDA SECTION: New Business ITEM: `1 C., TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DATE: February 15, 2011 SUBJECT: Cooperation Agreement between the City of Redevelopment Agency (Southeast Bakersfield future infrastructure improvements located at DEPARTMI GENERAL EXECUTIVE Bakersfield and the Bakersfield Redevelopment Project Area) for the South Millcreek Commercial village and surrounding area to include the design, bidding, and construction of curb and gutter; parking area,; traffic signs and signals; and median improvements in the amount of $325,744. RECOMMENDATION: Staff recommends approval of agreement. BACKGROUND: California Redevelopment Law allows any public body, including the City of Bakersfield, to aid and cooperate in the planning, undertaking, construction, or improvement of redevelopment projects (Section 33220 of the California Health and Safety Code). The Bakersfield Redevelopment Agency desires assistance and cooperation from the City in the implementation and completion of improvements within and adjacent to South Mill Creek Commercial Village. South Mill Creek Commercial Village is the 5,5 acres of Agency-owned land bounded by California Avenue on the south, "P" / "Q" streets on the west, Mill Creek Linear Park on the east, and the BNSF railroad tracks on the north. This area is key to the Agency's efforts to aid in the continued revitalization of the area surrounding Maya Cinemas, McMurtrey Aquatics Center, and Ice Sports Center, and Mill Creek Linear Park, Although the property that comprises South Mill Creek Commercial Village has been cleared, various improvements will need to be made to accommodate future development and increased traffic in the area. These improvements involve the design, bidding, and construction of curb and gutter; a parking lot; traffic signs and signals; and median improvements, In their entirety, these improvements are estimated to cost between $750,000 and $1,000,000, It is expected that a significant portion of these public improvements will require redevelopment assistance. To do so required the appropriation of $325,744 from the Southeast Redevelopment Fund Balance to the Capital Improvement Fund within the Southeast Redevelopment Operating Fund that City Council approved at their February 16, 2011 meeting. This is the amount that S:\Admins\RDA\RDA Admins 2011\Cooperation Agreement S. Mill Creek Commercial Village 022511.Docx February 15, 2011, 9:59AM ADMINISTRATIVE REPORT remains unappropriated in the Southeast Fund Balance as of June 2011 and can be used for this purpose. The agreement associated with this item needs to be approved by both City Council and the Redevelopment Agency. The agreement was approved at the February 16, 2011 City Council meeting, By approving this agreement, the City agreed it would construct the South Mill Creek Commercial Village Improvements, and the Agency will reimburse the City for the actual costs incurred to construct those improvements, Approving this agreement will legally obligate the RDA funds for these improvements and allow the City to construct them. In addition, the City Council also approved a Resolution which made certain findings that the proposed improvements are consistent with both the Implementation Plan and the Redevelopment Plan for the Southeast Bakersfield Redevelopment Project Area. S:\Admins\RDA\RDA Admins 2011\Cooperation Agreement S. Mill Creek Commercial Village 022511.Docx February 15, 2011, 9:59AM BA O~ycosraq~ ADMINISTRATIVE REPORT L® gL1 0 MEETING DATE: February 25, 2011 AGENDA SECTION: New Business ITEM: -I, A. TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L, Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: February 15, 2011 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Creekview Villas: Amendment No. 4 to Agreement No, RA09-012 to provide down payment assistance to eligible low- and moderate-income individuals and families (amount not to exceed $1,011,946). 2. Resolution regarding the use of housing set aside monies (Creekview Villas Down Payment Assistance Program, Southeast Bakersfield Redevelopment Project Area) outside the Downtown Redevelopment Project Area. RECOMMENDATION: Staff recommends approval of the amendment and adoption of the resolution. BACKGROUND: In order to ensure the affordability of the Creekview Villas to potential low- and moderate- income homebuyers a provision to provide funding to the new borrowers is being added to the agreement with Creekview Villas, LLC, The creation and maintenance of affordable housing continues to be a high priority of the Agency in its Implementation Plans and Redevelopment Plans, There are 36 units in the project to construct and sell. The funding will provide up to $50,000 per unit and pay for eligible down payment and closing costs to ensure the affordability of the units, The loan term for the borrower will be a 30 year, deferred, 0% interest and require a 45 year affordability covenant. In addition, Community Redevelopment Law under Health and Safety Code Section 33000 et seq., imposes specific obligations on each redevelopment agency in responding to housing needs within their jurisdiction by including the establishment of a Low- and Moderate-Income Housing Fund, Redevelopment agencies are required to allocate 20% of all taxes allocated to it for the purposes of increasing improving and preserving the community's supply of low- and moderate-income housing. Under Section 33334.2 it also provides that an agency may use these funds inside or outside the Redevelopment Project Area upon the adoption of a resolution by the legislative body that states the use of the funds will be of benefit to the Redevelopment Project Area. S:\Admins\RDA\RDA Admins 201 1 \Amend #4 Creekview And Reso,Docx February 15, 2011, 9:59AM ds ADMINISTRATIVE REPORT The funds will be used as down payment and closing cost assistance for the project. The down payment program will benefit the redevelopment project area by: 1) creating and maintaining affordable housing for individuals and families; and 2) provide avenues of affordable housing to the community that is consistent with the adopted Five-Year Implementation Plan. The Agency can provide more people affordable housing opportunities by allowing the use of housing monies outside the Downtown Redevelopment Project Area. The approval of the Resolution will allow for the commitment of $465,000 in Low- and Moderate income housing funds to be used as down payment and closing cost assistance to the Creekview Villas located at 1203 "R" Streets, The additional $546,946 in funding for the amendment is from the Southeast Bakersfield Redevelopment Funds. The following is a table listing the funds that have been committed to the project: Creekview Villas: Previously Funded: Southeast Redevelopment Low-Mod Fund $ 301,946 Appropriation approved by City Council on February 16, 2011: Southeast Redevelopment Low-Mod Fund 245,000 Downtown Redevelopment Low-Mod Fund 465,000 Total Funding 1,011,946 The down payment program will benefit the redevelopment project area by creating and maintaining affordable housing for individuals and families. The program is consistent with the adopted Five-Year Implementation Plan in providing avenues of affordable housing to the community. The City Council adopted a Resolution at their February 16, 2011 meeting approving the of benefit finding for the use of the redevelopment funds outside the Downtown Redevelopment Project Area, SAAdmins\RDA\RDA Admins 201 1 \Amend #4 Creekview And Reso,Docx February 15, 2011, 9:59AM ds B~ r ~iS ADMINISTRATIVE REPORT LIF MEETING DATE: February 25, 2011 AGENDA SECTION: New Business ITEM: n - TO: Bakersfield Redevelopment Agency FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAI DATE: February 14, 2011 GENERAL COUNSE EXECUTIVE DIRECTO SUBJECT: Contract Change Order No, 3 to Agreement RA10-011 with Wallace an(9 Smith General Contractor ($841,189, for a total amount not to exceed $ 3,586,491) for the construction of the South Mill Creek streets, utilities, sidewalks and landscaping project located in the Southeast Bakersfield Redevelopment Project Area. RECOMMENDATION: Staff recommends approval. BACKGROUND: On October 11, 2010 the Bakersfield Redevelopment Agency approved a construction contract with Wallace and Smith in the amount of $2,741,552 for street improvements needed for the residential developments in South Mill Creek, Of this amount, $2,121,000 will be paid from Proposition 1 C grant funds. Funds for the project have been reserved in the current Capital Improvement Budget in the Southeast Redevelopment Project Area and have been encumbered under the contract, The South Mill Creek streets, utilities, sidewalks and landscaping was originally planned to be completed in multiple phases as the housing developments commenced construction. Two of the three planned housing developments are currently under construction, Positive progress is occurring in the area and staff would like to continue that progress by encumbering the total remaining funds required to compete all of the needed street improvements. Approval of the appropriation will authorize staff to encumber the money by contract with Wallace and Smith and help assure adequate funding is available to complete the project infrastructure, clean the Agency owned site, and keep the Agency in compliance with the Prop, I C grant obligations. Failure to do so would result in incomplete streets and landscape that has been designed for the projects. During the first phase of construction of the Creekview Villas housing development Wallace and Smith discovered significant existing Brownfield conditions necessitating over excavation to a depth of 20 feet to remove loose trash fill that impacted existing and proposed new sewer lines as well as causing additional grading, testing and supervision costs for the project, In addition, S:\Admins\RDA\RDA Admins 2011 \Wallace And Smith11.Dccx February 14, 2011, 10:33AM DWH ADMINISTRATIVE REPORT future Creekview Villas buildings 1 and 2 will require additional costs since those areas were not able to be excavated due to existing underground utilities. Since, the Agency is obligated to transfer "clean" property to the developers, staff is preparing for a worst case scenario to address the Brownfield conditions by including a contingency for over excavation and cleanup up debris, hauling, importing and backfilling up to 11,600 cubic yards of dirt. The actual cost will be determined on a time and material basis, The following lists the project budget and the appropriation of additional funds approved by City Council at their February 16, 2011 meeting; Sources: Proposition 1 C grant funds awarded for South Mill Creek Streets Redevelopment tax increment and bond proceeds previously funded For infrastructure improvements - match for Proposition 1 C Previously funded Redevelopment budgeted resources for infrastructure improvements for South Mill Creek - match for Proposition 1 C • Appropriation from Southeast Redevelopment Fund Balance Total Sources: Uses: Project Budget - Redevelopment Existing Contract Wallace & Smith Previously funded Redevelopment Change Order No, 1 - SWPPP Plan Previously funded Redevelopment Change Order No. 2-PG&E, AT&T utility work • Proposed Redevelopment Agency Change Order No. 3 Total Uses: $2,121,000 $ 624,302 $ 371,933 469,256 $3,586,491 $2,741,552 $ 3,750 $ 0 841,189 $3,586,491 SAAdmins\RDA\RDA Admins 2011 \Wallace And Smith1_1,Docx February 14, 2011, 10:33AM DWH ~~y{pW024 D S1 'y J t ADMINISTRATIVE REPORT cNY qL/F MEETING DATE; February 25, 2011 AGENDA SECTION: New Business ITEM: -1. TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD C DATE: February 14, 2011 GENERAL COUNSEL EXECUTIVE DI SUBJECT: Resolution approving the provision of assistance by the Bakersfield Redevelopment Agency in accordance with Health and Safety Code Section 33445 for the installation of public improvements to the Rabobank Arena and Convention Center and the 18th and Eye Street Parking Structure. RECOMMENDATION: Staff recommends adoption of the Resolution. BACKGROUND: California Redevelopment Law under Health and Safety Code Sections 33000 allows redevelopment agencies to assist with the installation or construction of improvements to publicly owned facilities that benefit the project area by elimination of blighting influences with the consent of the legislative body. The Rabobank Convention Center and Arena complex has both deferred maintenance issues and deferred or obsolete equipment replacement issues that are eligible for redevelopment funding. The equipment to be replaced in the arena and convention center is twelve to fifty years old, and includes; the replacement of the dilapidated boilers with environmental issues used for heating of the facility, lighting retrofit and abatement of asbestos in lighting fixtures and replacement, arena obsolete spotlights and video equipment, addition of tri-vision camera system and the removal and replacement of a transformer. The old boiler equipment is not up to either EPA nor San Joaquin Valley APCD standards and must be replaced. Other equipment scheduled for replacement is obsolete and when requiring repairs often requires parts that are unattainable. The resolution also addresses replacement of the obsolete and non-working security cameras located in the 18th and Eye Street Parking Structure, The proposed improvements in the garage include the installation of security camera equipment to provide deterrence to graffiti, vandalism, and theft at the facility and remove the current blighting influences. S;\Admins\RDA\RDA Admins 2011 \Arena & Parking Reso,Docx February 14, 2011, 10:28AM ds ADMINISTRATIVE REPORT As a result of actual Tax Increment receipts for 2009-10 exceeding budget estimates, the Downtown RDA project area has an unallocated fund balance of $267,700, Additionally, there is currently $285,000 budgeted savings within the Downtown operating fund that had previously been budgeted for operational outside services which can be allocated towards these needed improvements, Pursuant to Health and Safety Code Section 33679, the legislative body is required to hold a public hearing authorizing the redevelopment agency to commit funding to the projects. In addition, under Health and Safety Code Section 33445 the legislative body is required to make the following findings; 1) the payment of funds for the improvements to the publicly owned facilities is consistent with the Implementation Plan for the Downtown Bakersfield Redevelopment Project Area; 2) that no other reasonable means of financing the project are available and; 3) the project will benefit the project area or the immediate neighborhood, City Council as the legislative body approved the commitment of the funding during a public hearing held on February 16, 2011. This public hearing notice was advertised once a week for two successive weeks prior to the hearing. Also in accordance to section 33679, the City and Agency provided to the public a summary report on the project which includes a description of the project, funding sources necessary to finance the development of the project and an explanation of how the project will assist in the elimination of blight and will primarily benefit the Downtown Redevelopment Project Area. SAAdmins\RDA\RDA Admins 201 1 \Arena & Parking Reso.Docx February 14, 2011, 10:28AM ds A O~ywwo~r S ADMINISTRATIVE REPORT LIFO MEETING DATE: February 25, 2011 AGENDA SECTION: New Business ITEM: . TO: Bakersfield Redevelopment Agency FROM: Donna L, Kunz, Deputy Executive Director DEPARTMENI DATE: February 15, 2011 GENERAL CC EXECUTIVE DI SUBJECT: Parkview Cottages: APPROVED Amendment No. 4 to Agreement No, RA03-12 to provide down payment assistance to eligible low- and moderate-income individuals and families (amount not to exceed $659,019). 2, Resolution regarding the use of housing set aside monies (Parkview Cottages Down Payment Assistance Program, Old Town Kern-Pioneer Redevelopment Project Area) outside the Downtown Redevelopment Project Area. RECOMMENDATION: Staff recommends approval of the amendment and adoption of the resolution. BACKGROUND: In order to ensure the affordability of the Parkview Cottages to potential low- and moderate- income homebuyers a provision to provide funding to the new borrowers is being added to the agreement with Parkview Cottage, LLC, The creation and maintenance of affordable housing continues to be a high priority of the Agency in its Implementation Plans and Redevelopment Plans. There are 29 units left in Phase III of the project to construct and sell. The funding will provide up to $35,000 per unit and pay for eligible down payment and closing costs to ensure the affordability of the units. The loan term for the borrower will be a 30 year, deferred, 0% interest and require a 45 year affordability covenant. In addition, Community Redevelopment Law under Health and Safety Code Section 33000 et seq., imposes specific obligations on each redevelopment agency in responding to housing needs within their jurisdiction by including the establishment of a Low- and Moderate-Income Housing Fund. Redevelopment agencies are required to allocate 20% of all taxes allocated to it for the purposes of increasing improving and preserving the community's supply of low- and moderate-income housing. Under Section 33334,2 it also provides that an agency may use these funds inside or outside the Redevelopment Project Area upon the adoption of a resolution by the legislative body that states the use of the funds will be of benefit to the Redevelopment Project Area. S:\Admins\RDA\RDA Admins 201 1 \Amend #4 Parkview And Reso,Docx February 15, 2011, 10:00AM ds ADMINISTRATIVE REPORT The funds will be used as down payment and closing cost assistance for the project. The down payment program will benefit the redevelopment project area by; 1) creating and maintaining affordable housing for individuals and families; and 2) provide avenues of affordable housing to the community that is consistent with the adopted Five-Year Implementation Plan, The Agency can provide more people affordable housing opportunities by allowing the use of housing monies outside the Downtown Redevelopment Project Area. The approval of the Resolution will allow for the commitment of $434,019 in Low- and Moderate income housing funds to be used as down payment and closing cost assistance to the Parkview Cottages located at 21St and "R" streets. The additional $225,000 in funding for the amendment is from the Old Town Kern Redevelopment Housing Funds. The following is a table listing the funds that have been committed to the project; Parkview Cottages: Previously Funded; Old Town Redevelopment Low-Mod Fund $384,919 Downtown Redevelopment Low-Mod Fund 49,100 Appropriation approved by City Council on February 16, 2011: Old Town Redevelopment Low-Mod Fund 225,000 Total Funding The City Council adopted a Resolution at their February 16, benefit finding for the use of the redevelopment funds outside Project Area, The down payment program will benefit the creating and maintaining affordable housing for individuals consistent with the adopted Five-Year Implementation Plan in housing to the community. 2011 meeting approving the of the Downtown Redevelopment redevelopment project area by and families. The program is providing avenues of affordable S:\Admins\RDA\RDA Admins 201 1 \Amend #4 Parkview And Reso,Docx February 15, 2011, 10:00AM ds A ADMINISTRATIVE REPORT rn MEETING DATE: February 25, 2011 AGENDA SECTION: ~`~►5 ITEM: TO: Bakersfield Redevelopment Agency APPROVED FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD DATE: February 15, 2011 GENERAL COUNSEL EXECUTIVE DIR SUBJECT: Accept bid and approve contract with HPS Mechanical, Incorporated/in the amount of $274,004 for Boiler Replacements at Bakersfield Convention Center and Rabobank Arena. RECOMMENDATION: Staff recommends acceptance of bid and approval of contract. BACKGROUND: Funds are available within the project area for improvements and equipment of public facilities. Actual tax receipts exceeding budget estimates and savings within the Downtown operating fund will provide the funding for the boiler replacements at the Bakersfield Convention Center and Rabobank Arena. A public hearing and resolution went before Council at their February 16 meeting to appropriate funds for this purchase, and other related items. Invitations to bid were sent to over one hundred (100) contractors for boiler replacement. Four (4) bids were received in response to the solicitation. The boilers servicing the Bakersfield Convention Center are over 25 years old and the boilers servicing the Rabobank Arena locker rooms and Administration offices are over 12 years old. The new units will comply with emissions requirements mandated by the San Joaquin Valley Air Pollution Control District. In addition, the new boiler for the Administration offices will improve the efficiency of the heating system for Rabobank Arena which will result in significant energy savings. The four (4) bids received are as follows: BIDDER AMOUNT HPS Mechanical, Inc. (Bakersfield, CA) $274,004 Strategic Mechanical, Inc. (Fresno, CA) $295,000 ACCO Engineered Systems, Inc. (Glendale, CA) $295,127 Patton Air Conditioning (Fresno, CA) $332,741 Staff finds the bid submitted by HPS Mechanical, Incorporated, to be acceptable. Purchasing Divisiorift S:\PURCHWDMIN\Admin 10-11\Boiler Replacements at Rabobank Arena and Bakersfield Conv Ctr., 10-11-52, February 25, 2011 RDA.docx A yo ADMINISTRATIVE REPORT ~r n 1 MEETING DATE: February 25, 2011 AGENDA SECTION: N¢,v-~ 950"!""S ITEM: "1 1, TO: FROM: DATE: SUBJECT: Bakersfield Redevelopment Agency Nelson K. Smith, Finance Officer February 15, 2011 Accept bid and approve contract with Gold Coast Electric, Incorporated, in the amount of $149,000 for the Transformer Replacement at the Bakersfield Convention Center. APPROVED DEPARTMENT HEAD GENERAL COUNSE EXECUTIVE DIRECTO RECOMMENDATION: Staff recommends acceptance of bid and approval of contract. BACKGROUND: Funds are available within the project area for improvements and equipment of public facilities. Actual tax receipts exceeding budget estimates and savings within the Downtown operating fund will provide the funding for the transformer replacement at the Bakersfield Convention Center. A public hearing and resolution went before Council at their February 16 meeting to appropriate RDA funds for this purchase and other related items. Invitations to bid were sent to over four hundred (400) contractors for transformer replacement. Two (2) bids were received in response to the solicitation. The existing 750 KVA transformer for the Bakersfield Convention Center is over 50 years old and has reached its service life. In addition, the fluid in the transformer contains a high level of polychlorinated biphenyls (PCBs) which is a hazardous material. The new transformer will improve the reliability of the system and prevent a prolonged down time for the Convention Center if the existing system fails. The two (2) bids received are as follows: BIDDER AMOUNT Gold Coast Electric, Incorporated $149,000 Bakersfield, CA Turnupseed Electric Service, Incorporated $161,750 Bakersfield, CA Staff finds the bid submitted by Gold Coast Electric, Incorporated, to be acceptable. Purchasing DivisioNkb SAPURCHWDMIMAdmin 10-11\Transformer Replacement at Bakersfield Convention Center, 10-11-50, February 25, 2011 RDA.docx A ADMINISTRATIVE REPORT MEETING DATE: February 25, 2011 AGENDA SECTION: WW ITEM: `I , , . TO: Bakersfield Redevelopment Agency APPROVED FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD DATE: February 15, 2011 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Accept bid from Entertainment Lighting Services, Incorporated, in the amount of $58,817.75 for six (6) Lycian Long Throw Spotlights for the Rabobank Arena. RECOMMENDATION: Staff recommends acceptance of bid. BACKGROUND: Funds are available within the project area for improvements and equipment of public facilities. Actual tax receipts exceeding budget estimates and savings within the Downtown operating fund will provide the funding for the purchase of replacement spotlights at the Rabobank Arena. A public hearing and resolution went before Council at their February 16 meeting to appropriate RDA funds for this purchase and other related items. Invitations to bid were sent to forty six (46) suppliers for theatrical equipment and supplies. Seven (7) bids were received in response to the solicitation. The Lycian Long Throw Spotlights will replace spotlights located in the upper north end of the arena. The light output of the current spotlights does not meet the minimum requirements for many touring shows that come to the facility. Maintenance and part replacement has not worked as an option as the existing units are over 12 years old. The seven (7) bids received are as follows: BIDDER AMOUNT Entertainment Lighting Services, Inc. $58,817.75 Sun Valley, CA LVH Entertainment Systems $60,994.55 Oxnard, CA Musson Theatrical, Inc. $61,864.88 Santa Clara, CA Purchasing Division/kb SAPURMADMIN\Admin 10-11\Lycian Spotlight, 10-11-53, February 25, 2011 RDA.docx ADMINISTRATIVE REPORT SECOA, Inc. $64,365.45 Champlin, MN Sacramento Theatrical Lighting $69,116.87 Sacramento, CA Innovative Concert Lighting, Inc. $73,179.62 Bakersfield, CA Rat Sound Systems, Inc. $73,956.03 Oxnard, CA Staff finds the bid submitted by Entertainment Lighting Services, Incorporated, to be acceptable. Purchasing Division/kb &TURCHWDMIMAdmin 10-11\Lycian Spotlight, 10-11-53, February 25, 2011 RDA.docx ADMINISTRATIVE REPORT c MEETING DATE: February 25, 2011 AGENDA SECTION: 04>4 93us" 'S ITEM: TO: Bakersfield Redevelopment Agency APPROVED FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD DATE: February 16, 2011 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Amendment #1 to Agreement # RA 97-2 between the City of Bakersfield and the Bakersfield Redevelopment Agency, increasing the annual debt payment the Agency pays regarding the debt service of the Arena and Convention Center from $1.2 million annually to a not to exceed amount of $1.7 million per year beginning in the 2011-12 Fiscal Year. RECOMMENDATION: Staff recommends approval of the Agreement. BACKGROUND: In 1997 the Agency and the City entered into an interagency agreement to share the debt service costs of the Arena and Convention Center. The original agreement called for the Agency to pay $1.2 million per year toward the approximate $3.2 million annual debt service. The annual payments were scheduled to terminate in conjunction with the maturity of the bonds in 2022. In an effort to both maximize the use of downtown tax increment funds and relieve some budgetary stress on the City's revenue streams, staff is recommending that the 1997 agreement be amended to fully utilize downtown project area tax increment funds by increasing the annual debt service payment of the Agency from $1.2 million per year to a not to exceed amount of $1.7 million per year beginning with the 2011-12 fiscal year. Staff estimates that the 2011-12 budget for the Downtown Project Area will have about $200,000 available for additional debt capacity to apply toward the Arena debt. This would make the RDA's estimated payment in 2011-12 approximately $1,400,000. In raising the contractual amount in the agreement by $500,000 (from the $1.2 million to the not to exceed $1.7 million per year), we are anticipating future growth of tax increment funds with the intention that the debt service payments would gradually increase over time up to the "not to exceed" amount. There would be no change to the overall bond payment schedule, which is still structured for total annual payments of $3.2 million per year and the bonds will still be fully repaid in the year 2022. The City will continue to cover the balance of debt service each year with Hotel Tax Revenues. SAAdmin\Admin Reports\ADMM-BRDA-Amend 1 to RA97-2 debt svc.doc