2003 AGN JUL 01 I05 - Laserfiche WebLink

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Item #5 CITY OF COLTON AGENDA REPORT FOR THE CITY COUNCIL MEETING OF JULY 1, 2003 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: AMER JAKHER, P.E., CITY ENGINEER :!) SUBJECT: AUTHORIZATION TO DEFER CONSTRUCTION OF OPTIONAL BID ITEM #1 (RELOCATION AND 48" UPSIZE OF TRANSMISSION WATER LINE) OF EDA PROJECT No. 07-01-05132 — CONSTRUCTION OF INFRASTRUCTURE IMPROVEMENTS TO SERVE THE COOLEYRANCHAREA TO NOVEMBER OF 2003. DATE: JUNE 23, 2003 BACKGROUND: On August 13, 1998, the City of Colton and Redevelopment Agency entered into a Joint Participation and Cooperation Agreement the East Valley Distribution/Warehousing and Drivers World Superstore by and Between the Redevelopment Agency for the City of Colton and the City of Colton and East Valley Land Company, LLC (the "JPA"), which was subsequently amended on July 17, 2001. On December 4, 2001, the City and Agency approved Amendment No. 2 to the JPA. The JPA provides a financing mechanism for the construction of public infrastructure improvements related to the development of 75 acres of property owned by East Valley Land Company (the "Developer"). Under Financing Alternative No. 1, if the City is successful in obtaining a $1,000,000 grant from the U.S. Department of Economic and Administration (EDA), the Agency is to contribute $1,502,199 to construct the public infrastructure improvements. On December 31, 2001, the City was awarded $1,000,000 from the EDA and subsequently, on April 30, 2002, the Agency received a $2,000,000 loan from the California Infrastructure and Economic Development Bank (CIEDB). The CIEDB loan is secured by Cooley Ranch tax increment. The $2,000,000 loan includes: a) the Agency's cash contribution of $1,502,199, b) $461,214 that is to be reimbursed to the Agency for cash contributions already made and, c) a buffer of $36,587. Pursuant to the terms outlined under Financing Alternative No. 1, the City issued a notice inviting bids to construct a portion of the public infrastructure improvements (EDA Project No. 07-01- 05132). The lowest qualified bidder submitted a bid for $1,325,556 and a bid for $444,444 for an optional bid item, the relocation of a 42" water line, owned by the City of Riverside. On October 1, 2002, the City awarded a contract to Matich Corp in the amount of $1,325,556. During this period of time, the City was also in the property acquisition phase for the construction of a sports park facility. Due to environmental issues surrounding the property located at the