DATE: December 18, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: AMENDMENT 1 WITH OSIDE ARENA HOLDINGS, LLC TO AGREEMENT FOR REIMBURSEMENT OF COSTS FOR EL CORAZON SIGNAGE
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 1 to the Agreement with Oside Arena Holdings, LLC for Reimbursement of Costs for the City’s portion of costs in the amount of $30,000, for a total not to exceed amount of $128,220, pertaining to the El Corazon signage; and authorize the City Manager to execute the amendment upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
The adopted sign program for El Corazon contemplates a variety of signs associated with both the City venues and private development planned for the property. Several of these signs were recently installed in conjunction with the Frontwave Arena and the soon to open Luma at El Corazon apartment community. The City of Oceanside (“City”) entered into an agreement with Oside Arena Holdings, LLC (“Oside”) for reimbursement of costs for the El Corazon gateway, directional and monument signage for the easterly side of El Corazon between Dr. Hugh La Bounty Drive and Senior Center Drive on August 13, 2024 (“Reimbursement Agreement”). The original Reimbursement Agreement, approved under the City Manager’s signature authority, is in the amount of $98,220, and at this time staff is requesting to enter into Amendment 1 with an increase to the City’s share of costs in the amount of $30,000 to the Reimbursement Agreement for a total of $128,220. The increase in costs pertain to costs for concrete bracing of the City’s two new monument signs due to existing slope areas at the signage locations for the Senior Center and Aquatic Center, along with reflective signage additions for two existing signs, and added contingency funds for potential minor signage alterations, if necessary.
The City and Oside Arena Holdings, LLC are parties to that certain Property Use Agreement dated February 22, 2024 (“Lease”), with respect to premises owned by the City consisting of approximately 7.2 acres of land within El Corazon Park, designated for the arena parking lot (“Parking Lot”). The Parking Lot provides approximately 638 total parking spaces, of which 150 are for the City’s exclusive use, and 100 are exclusive to Oside in connection with the Frontwave Arena adjacent to the Parking Lot (“Arena”).
In March of 2023, Oside issued a request for proposals (“RFP”) related to the signage needed for the Arena and surrounding area. The total signage package covered within the RFP included the design, production and installation of gateway signage, wayfinding and directional signage, and Arena building/property signage (“Oside Signage”). Through the RFP process, Oside selected Jones Sign (“Consultant”) as the consultant for the Signage. Oside later entered into an agreement with Consultant who is designing and producing the Oside Signage, and is in the process of installing the signage within El Corazon.
The City and Oside have a shared interest in the wayfinding, directional and gateway signage located within El Corazon Park and have agreed that it is beneficial for the parties to share in the costs of this signage. In addition, Oside is also agreeable to directing Consultant to design, produce and install the City monument signage for the senior and aquatic centers. Such additional signage shall hereinafter be referred to as “City Signage.” The City is prepared to reimburse Oside for the cost of the City Signage according to the terms and conditions of the Reimbursement Agreement.
Based on the original Reimbursement Agreement and the proposed Amendment 1, the City will reimburse Oside in an amount not to exceed $128,220, for the design and installation of the City Signage as set forth in the Consultant Change Order Request dated April 30, 2024 of $98,220, along with the current Consultant Change Order dated November 26, 2024, in the amount of $15,810, plus a contingency balance of $14,190, if needed.
FISCAL IMPACT
Amendment 1 of the Reimbursement Agreement in the increased amount of $30,000 will be charged to the El Corazon Maintenance account 320850501.5355 which has an available balance of $525,245; therefore, sufficient funds are available.
|
Description |
Amount |
Account |
Available Balance |
|
Amendment 1 Reimbursement Agreement Oside Holdings |
$30,000 |
320850501.5355 El Corazon Maintenance Account |
$525,245 |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form
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Prepared by: Vicki Gutierrez, Real Estate Manager
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Amendment 1