Title
a. Approve and authorize the Chair to sign an Advance Funding Agreement between BMC EG GARDEN, LLC and the County of Monterey for Prevailing Wage Compliance at the East Garrison Project at Fort Ord relating to the provision of funds to cover County costs for monitoring and reporting on prevailing wages obligations;
b. Approve and authorize the Chair to sign an Advance Funding Agreement between BMC EG BUNGALOW, LLC and the County of Monterey for Prevailing Wage Compliance at the East Garrison Project at Fort Ord relating to the provision of funds to cover County costs for monitoring and reporting on prevailing wages obligations; and
c. Approve and authorize the Chair to sign an Advance Funding Agreement between BMC EG VILLAGE, LLC and the County of Monterey for Prevailing Wage Compliance at the East Garrison Project at Fort Ord relating to the provision of funds to cover County costs for monitoring and reporting on prevailing wages obligations.
Report
RECOMMENDATIONS:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Chair to sign an Advance Funding Agreement between BMC EG GARDEN, LLC and the County of Monterey for Prevailing Wage Compliance at the East Garrison Project at Fort Ord relating to the provision of funds to cover County costs for monitoring and reporting on prevailing wages obligations;
b. Approve and authorize the Chair to sign an Advance Funding Agreement between BMC EG BUNGALOW, LLC and the County of Monterey for Prevailing Wage Compliance at the East Garrison Project at Fort Ord relating to the provision of funds to cover County costs for monitoring and reporting on prevailing wages obligations; and
c. Approve and authorize the Chair to sign an Advance Funding Agreement between BMC EG VILLAGE, LLC and the County of Monterey for Prevailing Wage Compliance at the East Garrison Project at Fort Ord relating to the provision of funds to cover County costs for monitoring and reporting on prevailing wages obligations.
SUMMARY:
The recommended actions will provide for vertical developers in the East Garrison Project to provide funding to cover the County's costs of monitoring and reporting on the developers' responsibilities to pay prevailing wages, consistent with the terms of the East Garrison Disposition and Development Agreement.
DISCUSSION:
In 2006, the County's Redevelopment Agency entered into a Disposition and Development Agreement ("DDA") and the County entered into a Development Agreement ("DA") with East Garrison Partners I, LLC ("EGP") for a development (the "East Garrison Project") of up to 1470 dwelling units, some 34,000 square feet of commercial, retail and community uses, and the rehabilitation of the Historic District. The entire area has been graded, a final subdivision map for Phase I was recorded, and Phase I infrastructure for "wet" utilities (e.g., water, sewer and storm drain) has been installed.
During the Great Recession, the East Garrison Project was acquired by Union Community Partners ("UCP") which became the new Master Developer pursuant to a First Implementation Agreement approved in June, 2011. UCP has been working to fulfill the terms of the DDA and DA since that time and has reached a point where it is ready to transfer certain Parcels for sale to affiliated entities for the actual construction and sale of homes.
Under the DDA, the Master Developer is allowed to transfer portions of the Project to third party builders, including affiliated entities, for the actual construction of residences ("vertical developers"). In order to do so, the vertical developers must agree to assume obligations of the DDA with respect to the parcels transferred. One of the obligations to be assumed by vertical developers is the payment of prevailing wages as required by law or the FORA Master Resolution. There has already been a legal determination that all initial development in the East Garrison Project (including the residences to be developed by the vertical developers) is subject to the requirement to pay prevailing wages.
Pursuant to Section 312 of the DDA, vertical developers have the obligation to pay prevailing wages for all construction on the Parcels as well as the obligation to bear the County's costs of monitoring and reporting to ensure compliance with prevailing wage requirements. The recommended Agreements formalize that obligation by requiring the vertical developers to make a deposit in the amount of Twenty-five Thousand Dollars ($25,000) to cover the County's costs. If the deposit goes below a certain amount, the vertical developer must replenish the deposit.
The County retains the flexibility to perform these monitoring and reporting tasks with existing staff or by hiring appropriate consultants. It is currently anticipated that consultants will be used, although some initial monitoring may be conducted in-house.
OTHER AGENCY INVOLVEMENT:
The Office of the County Counsel has reviewed and approved the recommended Advance Funding Agreements as to form. The East Garrison Project is a collaboration of many departments, including Planning, Building Services, Public Works and the CAO.
FINANCING:
The recommended action will have no impact on the County General Fund. Pursuant to the East Garrison DDA and these Agreements, the vertical developers are required to provide funding for the County's obligations to monitor and report on the developers' prevailing wage obligations.
Prepared by: G.H. Nichols, P.E., Civil Engineer, (831) 755-5386
Approved by:
_________________________________________
Robert K. Murdoch, P.E., Director of Public Works
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Benny J. Young, RMA Director
Dated: March 13, 2013
Attachments:
Exhibit A: Background of Activities - East Garrison Development
Exhibit B: Advance Funding Agreement between BMC EG GARDEN, LLC and the County of Monterey for Prevailing Wage Compliance at the East Garrison Project at Fort Ord
Exhibit C: Advance Funding Agreement with BMC EG BUNGALOW, LLC and the County of Monterey for Prevailing Wage Compliance at the East Garrison Project at Fort Ord
Exhibit D: Advance Funding Agreement with BMC EG VILLAGE, LLC and the County of Monterey for Prevailing Wage Compliance at the East Garrison Project at Fort Ord
Exhibit E: Vicinity Map
cc:
Monterey County Water Resources Agency, David Chardovoyne, General Manager
Monterey County Regional Fire District, Michael Urquides, Chief
Monterey County Parks Department, Michael Ferry, Director
Monterey County Sheriff Department, Scott Miller, Sheriff
Monterey County Health Dept, Environmental Health Bureau, John Ramirez, Director
UCP East Garrison, LLC, Jim Fletcher
Monterey-Salinas Transit, Mike Hernandez, Asst General Manager/COO
Marina Coast Water District, Jim Heitzman, General Manager