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
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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