Title:
Title
Third Amendment to the Arena Financing and Funding Agreement (AFFA)
End
FileID
File ID: 2019-00781
Location
Location: Citywide
Recommendation:
Recommendation
Pass a Motion authorizing the City Manager or City Manager's designee to execute the Third Amendment to the Arena Finance and Funding Agreement (AFFA), which permits the release of excess retainage and which sets forth the process for the City's final release of retainage for the Entertainment and Sports Project (Golden1 Center).
Contact: John Dangberg, Economic Development Advisor to the City Manager, (916) 808-1222, Office of the City Manager
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Third Amendment to the Arena Financing and Funding Agreement
Description/Analysis
Issue Detail: Staff is requesting that the City Council authorize the amendment of the AFFA to reduce the construction retainage held for the Golden 1 Center and release excess retainage.
The purpose of the Golden 1 Center construction retainage is to provide the City with funds to ensure that ArenaCo fulfills its development and construction obligations set forth in the Arena Design and Construction Agreement (ADACA). Further, under state regulations governing public works projects, the City is required to retain five percent of progress payments until completion and acceptance of the project. Once 50 percent of the work has been completed, the City Council can reduce or waive the five percent retainage requirement per Section 9203(a) of the Public Contracts Code. The Council approved such a waiver in the second amendment to the AFFA and reduced the amount retained to no less than two percent ($4,462,602). As set forth in the second amendment, the final release of City retainage would be made upon completion of the project and subject to the following conditions:
* Construction punch list items have been satisfactorily addressed;
* All relevant conditions of project approval have been satisf...
Click here for full text