HomeMy WebLinkAbout08/19/2003, C9 - SANTA ROSA PARK RENOVATIONS council 8-19-03
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CITY O F SAN LU IS OBISPO
FROM: Bill Statler,Director of Finance &Information Technologyn
SUBJECT: SANTA ROSA PARK RENOVATIONS
CAO RECOMMENDATION
1. Appropriate $10,600 from the Parkland Development Fund for additional lighting as part of
the Santa Rosa Park renovation project.
2. Approve a sole source contract in the amount of $10,622.40 to Specialty Construction for
this work.
DISCUSSION
Background. The Santa Rosa Park renovations project is a unique arrangement between the
City and Cingular Wireless that will provide for needed improvements within Santa Rosa Park in
return for the placement of wireless antennas and equipment on the site. The City will benefit
from enhanced lighting and expansion of the softball field, improvements to the lighting for the
skate park and roller rink, more secure storage for park user groups and a major overhaul of the
parking lot.
Under the lease agreement approved by the Council on February 4, 2003 (based on a
Memorandum of Understanding previously approved by the Council in April 2002), these
improvements are being directly made and paid for by Cingular, which will be reimbursed by the
City through "in lieu" rental credits. On April
1, 2003, the Council approved amendments to Annual Lease Payments:First Eight Years
the lease to accomplish additional work in the Annual Form of Payment
park, most notably ball field fencing and Year Rent In-Lieu Cash
parking lot renovations. 2003 40,000 40,000 -
2004 41,200 41,200 -
The total value of the improvements is 2005 42,436 42,436 -
$291,536. As shown in the example for the 2006 43,709 43,709 -
first eight years of the lease in the sidebar chart,
this is paid for via "in-lieu" rent credits through 2007 45,020 45,020
2009; beginning in 2010, the regular, full cash 2008 46,371 46,371 -
lease payments will begin until the end of the 2009 47,762 32,800 14,962
maximum lease term in 2023. 12010 1 49,1951 1 49,195
Total 1 $355,693 1 $291,536 1 $64,157
Added Work Since the Lease Amendment. Note:Lease has a maximum term of 20 years
Cingular has secured all necessary permits and
begun construction at the site. During the final stages of review and discussion of the terms of
the agreement, it was discovered that some electrical components were left off the plans that
were used to prepare the most current construction cost estimate. This involves installing
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Santa Rosa Park Renovations Page 2
exterior light fixtures on the storage buildings to enhance safety and deter vandalism; and
installing light fixtures inside the building spaces that will be used by park user groups. During
recent discussions with Cingular and their contractor, City staff concurred that the cost for these
needed improvements was not included in the cost estimate reflected in the amended lease
agreement.
Sole Source Contract with Specialty Construction. Specialty Construction is the contractor
hired by Cingular to build the improvements, and they have submitted a quote to the City for
performing the additional electrical work. We recommend hiring them to do this minor added
work via purchase order because they are already on site, and hiring a different contractor will
introduce conflicts and delays during the work at a higher cost.
CONCURRENCES
We held an extensive, "all-hands" meeting with City staff (Administration, Finance &
Information Technology, Parks & Recreation and Engineering) and representatives from
Cingular and the contactor on June 23, 2003 to discuss a number of contract issues. We agreed
that if the final changes were focused on just these minor electrical improvements (at the time
there were a number of much more complicated issues on the table that have since been resolved
to the City's favor), the best course of action would be to simply contract directly with the on-
site contractor.
FISCAL IMPACT
Prior to funding this project via the lease agreement with Cingular; these improvements were
scheduled to be funded from the Parkland Development Fund (2001-03 Financial Plan, page E-
21). As such, we recommend this funding source in finalizing this project workscope. With a
projected unreserved fund balance of $116,900 at the end of 2003-05, adequate resources are
available in the Parkland Development Fund to finance the proposed added cost.
ALTERNATIVES
Do Not Make the Lighting Fixture Improvements. As noted above, we believe that it is
important to install exterior light fixtures on the storage buildings to enhance safety and deter
vandalism; and to install light fixtures inside the building spaces to accommodate park user
groups.
G:Santa Rosa Park Telecommunications Lease/Council Agenda Report,Supplemental Funding,8-19-03
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