Community Redevelopment Agency "lihe CITY OF LOS AI\GELES ~~ CRA/~. ;oL,,' Siw,,,,',,,':;; DATE i OCT 4 - ZOOl

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CRA File No. 51Sì- Council District: 9 Contact Person: Mr. Len Betz Mr. Jav Shih (213) 977-1607 (213) 977-1957 Honorable Council of the City of Los Angeles John Ferraro Council Chamber 200 N. Spring Street Room 340, City Hall Los Angeles, CA 90012

Attention: Alan Alietti, Office of the City Clerk

COUNCIL TRANSMITTAL:

Transmitted herewith, is a Board Memorandum adopted by the Agency Board on October 4, 2007 for City Council review and approval in accordance with the "Community Redevelopment Agency Oversight Ordinance" entitled:

VARIOUS ACTIONS RELATED TO:

VARIOUS ACTIONS FOR THE AWARD OF PUBLIC IMPROVEMENT CONTRACT TO POWELL CONSTRUCTORS IN THE AMOUNT OF $1,998,527 CONSTRUCTION OF UPPER 2ND STREET IN THE BUNKER HILL REDEVELOPMENT PROJECT AREA DOWNTOWN REGION (CD 9)

RECOMMENDATION

That the Agency, subject to City Council review and approval, increase the delegation of authority to the Chief Executive Officer to approve change orders from $100,000 to $200,000 for this project only. The recommended action will amend the delegation of authority to the Chief Executive Officer to approve change orders to Agency authorized püblic impiovement contracts fíûm the maximüm of $100,000 to $200,000.

ENVIRONMENTAL REVIEW

A Mitigated Negative Declaration (MND) pursuant to the California Environmental Quality Act was adopted by the Agency on December 16, 2004.

OCT 1 0 2007 HOUSING, COMMUNITY & ECONOMIC DEVELOPMENT ~~ S~!~~"".'M'

Caltrans has determined that this project does not have a significant impact on the environment as defined by the National Environmental Policy Act, and thus an Environmental Assessment or Environmental Impact Statement does not need to be prepared.

FISCAL IMPACT STATEMENT

There is no fiscal impact to the City's General Fund, as a result of this action.

N~ecilia V. Estolano, Chief Executive Officer cc Alan A1etti, Office of the City Clerk (Original & 3 Copies on 3-hole punch) Annemarie Sauer, Nancy Duong, Office of the CAO Paul Smith, Ivania Sobalvarro, Office of the CLA Adriana Martinez, Office of the Mayor Noreen Vincent, Office of the City Attorney Jan Perry, CD 9

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bcc: Ras Mallari Angela Ovalle Sharon Hasley Nenita Tan, Office of the City Controller Records (2 copies) Tim Chung Len Betz David Riccitiello Sandra Sunday Jay Shih

'Ë-((L¡:i)~, THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA MEMORANDUM 3 DATE: OCTOBER 4, 2007 BH3010 TO: AGENCY COMMISSIONERS FROM: CECILIA V. ESTOLANO, CHIEF EXECUTIVE OFFICER

RESPONSIBLE PARTIES: DAVID RICCITIELLO, REGIONAL ADMINISTRATOR LEN BETZ, PROJECT MANAGER JAY SHIH, SENIOR CIVIL ENGINEER SUBJECT: VARIOUS ACTIONS RELATED TO AWARD OF PUBLIC IMPROVEMENT CONTRACT TO POWELL CONSTRUCTORS IN THE AMOUNT OF $1,998,527 FOR CONSTRUCTION OF UPPER 2ND STREET IN THE BUNKER HILL REDEVELOPMENT PROJECT AREA DOWNTOWN REGION (CD 9)

RECOMMENDATION

1. That the Agency, under Section 8.99.05 of the Los Angeles Administrative Code, as amended, award the public improvement contract IFP NP-2700 in the amount of $1 ,998,527 to Powell Constructors for the construction of the segment of Upper 2nd Street between Olive Street and Upper Grand Avenue in the Bunker Hil Redevelopment Project area; and

2. That the Agency, subject to City Council review and approval, increase the delegation of authority to the Chief Executive Officer to approve change orders from $100,000 to $200,000 for this project only. The recommended action will amend the delegation of authority to the Chief Executive Offcer to approve change orders to Agency authorized public improvement contracts from the maximum of $100,000 to $200,000.

SUMMARY

Public improvement contract IFB NP-2700 provides for the construction of the extension of Upper 2nd Street between Olive Street and Upper Grand Avenue (See Location Map, Attachment A). The Project is funded by Federal STP-L funds, MTA Call For Project funds, and Bunker Hill Tax Increment.

The Agency published an Invitation for Bid IFB NP-2700 on May 31, 2007 in the Los Angeles Daily News, on June 1, 2007, in La Opinion, on June 1 and June 8, 2007, in the Dodge Construction News, and on June 7, 2007 in the Los Angeles SentineL. A total of seven (7) prime contractors received bid packages and attended the mandatory pre-bid meeting on August 17, 2007. AWARD CONTRACT FOR uPPER 2ND STREET CONSTRUCTION 2

Four (4) bids were received at 11 :00 am on the due date of September 11, 2007. Bids were opened at 11 :21 a.m. on September 11, 2007 with the following results:

Powell Construction $1,998,527 Los Angeles Engineering, Inc. $2,266,294 Griffith Co. $2,599,926 T.T. Polich & Associates $2,795,882 The Engineer's Estimate on this Project is $2,707,000. Agency staff has reviewed the bid with the low bidder and is confident the contractor can perform the work. The Engineer's Estimate included public improvements adjacent to the expansion of the Colburn School of Performing Arts (Colburn School) and constructed by the Colburn School as a condition of their Certificate of Occupancy. These improvements were deleted from the contract prior to the bid closing and are not reflected in the contractor's bid.

The solicitation for bids was prepared and issued prior to the August 16, 2007 Board discussion of including "local hires" language in the Agency's public improvement contracts. However, due to the use of Federal Transportation monies to fund this particular project, any "local hires" language would not be permitted as it is deemed geographically discriminatory and restrictive to the competitive bidding process, pursuant to guidance issued by the federal Offce of Management and Budget. Specifically, FHWA has interpreted 23 U. S. C. Section 112(b) by concluding that local hire requirements may constrain competitive bidding and thus denies the use of federal funds in such situations.

The construction of the extension of Upper 2nd Street involves construction of a full width street, complete with curbs, gutters, sidewalk, asphalt paving, streetlights and a bridge over the existing 2nd Street Tunnel; demolition, excavation and grading directly adjacent to the Colburn School of Performing Arts (Colburn School), including the removal of an existing balcony attached to the Colburn SchooL. Due to these complex conditions, staff is recommending that the Chief Executive Officer's authority be amended to allow approval of change orders in an aggregate amount not to exceed $200,000. This represents approximately 10% of the contract amount, which is a normal contingency on a public improvement contract, to account for conflicts with actual conditions encountered once construction has begun.

A preliminary public art component was developed by the Agency for Upper 2nd Street in 2005, however the proposal was deemed not to be appropriate in tenms of location, sight lines, massing and scale in relation to Related Company's architectural plans for Parcel Q. A new approach for the streetscape public art will be developed by Related so that all design elements are fully integrated.

RE

December 16, 2004 and February 16, 2007 - Agency and City Council approval Adoption of Impli:mi:ntatinn Agrøp.mønt fnr first Phase ,.f Ilpp,c,. ")nd Shoel i....roHOme"ts ~"'" adopt' .... .~...... ~ ...... ~...... ,.. ..,.. ~I.. L ""l" V.. II ilL g.... VIIi.... VI ..ç Health & Safety Code §33445 Resolution.

July 15, 2004 - Authorization to dedicate the easterly portion of Agency Lot R between Olive and Grand Avenue, known as Upper 2nd Street, for public street purposes. June 3, 2004 - Various Actions related to receipt of Caltrans funds and execution of Cooperation Agreement with the Board of Public Works for transfer of Caltrans funds. AWARD CONTRACT FOR uPPER 2ND STREET CONSTRUCTION 3

SOURCE OF FUNDS

Federal Caltrans STP-L funds of $1,800,000; MTA local funds (1999 Call For Projects) of $2,022,000; Agency matching funds of $610,100 from the Bunker Hill Tax Increment; MTA 2006 Supplemental funds (federal Caltrans) of $400,000.

PROGRAM AND BUDGET IMPACT

Funds are available in the FY08 Budget for this adopted work objective under BH3010 (Public Improvement). The Upper 2nd Street project has been a long standing goal of the Bunker Hill Urban Renewal Project and is included in the Five Year Implementation Plan.

ENVIRONMENTAL REVIEW

A Mitigated Negative Declaration (MND) pursuant to the California Environmental Quality Act was adopted by the Agency on December 16, 2004.

Caltrans has determined that this project does not have a significant impact on the environment as defined by the National Environmental Policy Act, and thus an Environmental Assessment or Environmental Impact Statement does not need to be prepared.

BACKGROUND

Upper 2nd Street currently exists as two discontinuous segments: the single west-bound traffc lane between Hill Street and Olive Street and the newly-built two-way segment between Upper Grand Avenue and Hope Street, adjacent to the Disney Concert HalL. When this middle segment between Olive Street and Grand Avenue is constructed under this contract, 2nd Street will provide a continuous pedestrian and vehicular connection through Bunker Hill and east to the Historic Core. With the development on Upper Grand Avenue, significant traffc increases within the Bunker Hill area are anticipated. The additional traffic will exceed the capacity of parallel streets (151 Street and 3'd Street). Construction of this missing segment will enhance circulation and provide capacity relief to the surrounding roadway network and has been a long standing requirement for development of parcels that now constitute the Grand Avenue Project and the Disney Concert Hall Project. Specifically, the scope of work for Upper 2nd Street public improvements will consist of providing grading (cut and fill), construction of curbs, gutters, sidewalks, and paving, constructing a connecting bridge, and remodeling a ventilation shaft for the underlying 2nd Street Tunnel and other related improvements and associated soft costs.

In accordance with the 1991 Owners Participation Agreement between the Agency and the County of Los Angeles, the County's obligation for the construction of 2nd Street was deemed fulfilled when the County authorized the execution of easement conveyances for Upper 2nd Street, and contributed $4.6 million to the Grand Avenue project for public improvements per the Grand Avenue Disposition Development Agreement. The Agency successfully secured $2,022,000 in funding from the 1999 ivlTA Caii for Projects. The Agency then secured $1.8 million in City of Los Angeles controlled Federal Transportation STP-L funds, and finally $400,000 in contingency funds from the 2006 MTA Supplemental Call for Projects.

The construction of Upper 2nd Street has been coordinated with the expansion of the Colburn School and will be coordinated with the first phase development of the Grand Avenue Project for the parcel adjoining Upper 2nd Street. On December 21, 2006, the Agency approved an Implementation Agreement with the Coburn School to provide $300,000 in budgeted funds that were to be used by the Upper 2nd Street Project to install curb, gutter and sidewalk that adjoin AWARD CONTRACT FOR uPPER 2ND STREET CONSTRUCTION 4

the Colburn School Project. Without such improvements, the Colburn School would not be able to receive a Certificate of Occupancy for their expansion project. Shortly after City Council approval of these actions on February 16, 2007, the funds were provided to the Colburn School, the improvements were made, and the expanded Colburn School opened in late Summer 2007.

The Agency, also on December 21, 2006, approved the Section 33445 Resolution required for public improvement projects using redevelopment funding. In addition, the Agency authorized the execution of a contract with the Metropolitan Transportation Authority of Los Angeles County for $400,000 in supplemental funding for the project and recognized the funding for budgetary purposes.

AGENCY POLICIES

The Contractor and any alternative contractor will be bound by the Agency's Equal Opportunity and Affirmative Action policies and the Agency's Prevailing Wage, Living Wage, Worker Retention, Equal Benefits and Contractor Responsibilities policies as applicable.

Cecilia V. Estolano Chief Executive Officer

e n F. Wasserman Ch' f Operating Offcer

There is no conflict of interest known to me, which exists with regard to any Agency officer or employee concerning these actions.

Attachment A: Location Map ATTACHMENT "A"

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PROJECT AREA

LOCATION MAP