Agenda Item: 6
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: November 28, 2023
SUBJECT: MCBEAN PARKWAY REALIGNMENT, PROJECT S1047 -
DEVELOPER AGREEMENT BETWEEN THE CITY OF SANTA
CLARITA, HENRY MAYO NEWHALL HOSPITAL, AND HCN G&L
VALENCIA SUB, LLC
DEPARTMENT: Public Works
PRESENTER: Shannon Pickett
RECOMMENDED ACTION
City Council:
1. Approve the draft developer agreement between the City of Santa Clarita, Henry Mayo Newhall Hospital, and HCN G&L VALENCIA SUB, LLC, stipulating Henry Mayo Newhall Hospital and HCN G&L VALENCIA SUB, LLC, will provide all project related costs above and beyond grant funds obtained by the City of Santa Clarita and providing the City of Santa Clarita right-of-entry to construct and stage on Henry Mayo Newhall Hospital and HCN G&L VALENCIA SUB, LLC, properties.
2. Authorize the City Manager or designee to execute all required documents, subject to City Attorney approval.
BACKGROUND
The proposed McBean Parkway Realignment Project, shown on the attached Location Map, will improve circulation on McBean Parkway at Orchard Village Road and improve ingress and egress at Henry Mayo Newhall Hospital (HMNH). The project will realign the existing medians east and west of Orchard Village Road and install street improvements along the frontage of HMNH providing for the addition of a dedicated right turn pocket on westbound McBean Parkway into the hospital for improved emergency services access. A dedicated right turn pocket from eastbound McBean Parkway onto southbound Orchard Village Road will be added to improve eastbound afternoon traffic on McBean Parkway. This work is part of the Henry Mayo Hospital Master Plan and supports the Building and Creating Community theme of the City of Santa Clarita’s (City) five-year strategic plan, Santa Clarita 2025.
In October 2017, the City Council approved a contract for design services for the McBean Parkway Median Realignment Project to Anderson Penna, and construction drawings were completed in 2020. On June 28, 2022, the City was granted $1,120,000 from the Consolidated Appropriations Act, 2022, under the Community Project Funding/Congressionally Directed Spending, recommended by Congressman Mike Garcia, to construct these improvements. These funds will be administered through the California Department of Transportation (Caltrans).
These improvements have been deemed to be mutually beneficial to the City and HMNH prompting a collaboration between the City and the hospital campus property owners, HMNH and HCN G&L VALENCIA SUB, LLC (HCN Valencia), for project planning and preparation of a developer agreement. The agreement includes the following terms:
• HMNH and HCN Valencia will provide funding to cover all project-related costs in excess of grant funds obtained by the City.
• The right-of-entry agreement will be executed to allow the City to access HMNH and HCN Valencia properties for construction activities and laydown yard. • HMNH and HCN Valencia will procure materials with long lead times in advance of the start of construction.
In order to maintain and utilize the grant funding, the City needs to execute this developer agreement to acquire the right-of-entry approval from property owners and to complete a full right-of-way review as required by Caltrans.
All parties have reviewed and commented on the agreement and generally agree on the terms. A draft of the agreement is available in the City Clerk’s Reading File. Final adjustments are anticipated to be minor and primarily related to format and syntax.
Once all parties have approved the agreement, staff will advertise the project and return to City Council to obtain approval of the award for construction.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
None by this action. The recommended action only allows the City to enter into an agreement to secure a right-of-entry agreement, establish responsibility for project cost sharing and procurement of materials, and provide credit for Bridge and Thoroughfare eligible construction costs paid for by HMNH. Reimbursable construction costs are within Valencia Bridge and Thoroughfare District (Fund 303).
ATTACHMENTS
Location Map
Draft Agreement (available in the City Clerk's Reading File)