HomeMy WebLinkAbout2008-02-19; City Council; 19326; Cost Summary Report for July 3, 2007 Airplane Crash and Ratification of Changer Order to Golf Course Construction Contract Project 39721CITY OF CARLSBAD / CARLSBAD PUBLIC R
FINANCING AUTHORITY - AGENDA BILL
AB# -19,326
MTG. 2/19/08
DEPT. CM
COST SUMMARY REPORT FOR THE JULY 3, 2007
AIRPLANE CRASH AND RATIFICATION OF CHANGE
ORDER TO GOLF COURSE CONSTRUCTION
CONTRACT PROJECT 39721
DEPT. HEAD ^f
CITY ATTY. U4'
CITYMGR. ]()J
RECOMMENDED ACTION:
City Council adoption of Resolution No. 2008-049 accepting the Airplane Crash Cost Summary
report for the July 3, 2007 plane crash damage.
Carlsbad Public Financing Authority (CPFA) adoption of Resolution No. 43 ratifying the approval
of Change Order No. 13 to the existing contract with Wadsworth Golf Course Construction Company and
appropriating additional funds for the repair of damage to The Crossings at Carlsbad golf course caused
by an airplane crash.
ITEM EXPLANATION:
On July 3, 2007 an airplane taking off from Palomar Airport in heavy fog crash landed on The Crossings
at Carlsbad hole number 3. The accident damaged the new golf course and major electrical
transmission facilities resulting in the need to restore the golf course and electrical facilities and remove
hazardous waste and debris. On that same date the County of San Diego issued an Official Notice of
Violation to Southwest Consulting Group, Inc., the owner of the airplane, ordering it to immediately
contract with a licensed hazardous waste contractor for proper removal and disposal of the contaminated
soils. Southwest Consulting Group flight insurance company, CTC Services Aviation (LAD Inc) an
independent claims management company that adjusts losses insured by U.S. Specialty Insurance
Company, initially contracted with NRC Environmental Services (NRC) to conduct the emergency
cleanup work.
On July 6, 2007 after the cleanup had begun, LAD revoked their authorization, and it became necessary
for the City, as the land owner, to authorize NRC to complete the cleanup work. The City Manager
declared the necessity for emergency action on that date, to allow the City to utilize emergency
contracting procedures pursuant to Public Contract Code §22050 to immediately contract with NRC to
mitigate, transport, and dispose of contaminated materials on the golf course. On July 10, 2007, the
City and the CPFA adopted City Resolution No. 2007-178 ratifying the City Manager's declaration of an
emergency action and CPFA Resolution No. 39 authorizing change order authority to an existing contract
with Wadsworth Golf Course Construction Company (Wadsworth). These two actions resulted funds
totaling $750,000 to cover the estimated costs of repairs.
The Crossings at Carlsbad was originally scheduled to open on August 4, 2007. The impacts of the
crash to the golf course resulted in a one-week delay opening the golf course to the public, which
occurred on August 11, 2008. The lost revenue and other damage related costs resulting from the crash
associated with the golf operation are included as a cost impact. The restaurant was not ready to open
at the same time as the golf course; therefore, there is no lost revenue for the restaurant operation.
NRC has completed the removal, mitigation, and transportation of the hazardous material, and
Wadsworth has completed the restoration of the golf course caused by the airplane crash. The cost
incurred by the City and CPFA are summarized and reported in the table below.
DEPARTMENT CONTACT: Skip Hammann at (760) 434-2856, sham@ci.carlsbad.ca.us
FOR CITY CLERK'S USE ONLY.
BOARD ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
D
D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER-SEE MINUTES D
Page 2
AIRPLANE CRASH COST SUMMARY REPORT
Item
NRC
(Transportation and Disposal of Hazardous Waste)
Dudek Associates
(Consultant construction management and inspection
Bureau Veritas
(Consultant material testing and inspection)
Emergency Services SUBTOTAL
Wadsworth Golf Construction Company
(Golf course repairs)
Golf Course Repair Damages SUBTOTAL
Kemper Sports Management
(Overtime payroll as a result of crash)
Golf Ventures West
(Replace lawnmower)
Lost Revenue
(Delay in golf course opening)
Golf Operation Cost SUBTOTAL
TOTAL
Amount
$141,104.39
$36,199.00
$ 9,395.08
$186,698.47
$331.239.29
$517,937.76
$21,995.00
$ 7,165.00
$133.700.00
$162,860.00
$680,797.76
FISCAL IMPACT:
The City and the CPFA provided the funding for the cost outlined above. The City and CPFA approved a
total of $750,000 for the necessary cleanup and repairs to The Crossings at Carlsbad. The CPFA
authorized $250,000 for a contract revision with Wadsworth for repair of damage to the course, and the
City appropriated $500,000 for other services rejated to the plane crash. A change order was previously
approved by the CPFA for Wadsworth in an estimated amount of $ 250,000. The final cost was actually
$331,239.29 and staff is now requesting a ratification of the change order in that amount and an
additional appropriation of $81,239.29. An amount of $186,698.47 was paid for other emergency
services as noted above in lieu of the $500,000 estimated. The total actual costs to repair damage to the
golf course property were $517,937.76 rather than the original total estimate of $750,000.
In addition, it is estimated that golf operations managed by Kemper Sports incurred costs amounting to
$162,860 due to the delay in opening the golf course to the public and impacts directly related to the
plane crash. The additional operational cost was reflected in the updated 2007 golf course budget
approved by Council.
A claim was filed with the golf course insurance provider, The Travelers Companies, Inc. (Travelers) for
all of the above-mentioned costs and the City and CPFA have now recovered $640,830.87 from
Travelers as reimbursement for expenses incurred and lost revenue due to the plane crash. The
deductible was subtracted from the amount paid and a small portion was disallowed. The City Attorney
will seek recovery of the $25,000 deductible from the responsible party at the appropriate time.
ENVIRONMENTAL IMPACT:
Emergency projects are statutorily exempt from CEQA pursuant to CEQA Guidelines section 15269.
EXHIBITS:
A. City Council Resolution No. 2008-049 accepting Airplane Crash Cost Summary Report.
B. CPFA Resolution No.43
contract and appropriating additional funds.
ratifying change order to existing golf course construction
/I
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EXHIBIT A
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RESOLUTION NO. 2008-049
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
5 CARLSBAD ACCEPTING COST REPORT FOR JULY 3, 2007
AIRPLANE CRASH AT THE CROSSINGS AT CARLSBAD
6 CARLSBAD MUNICIPAL GOLF COURSE. PROJECT NO. 39721
7
g WHEREAS, on July 10, 2007 the City Council ratified the City Manager's declaration of
9 an emergency and appropriated funds for damages as a result of an airplane crash on July 3, 2007
10 at The Crossings At Carlsbad; and
11 WHEREAS, the City Manager or his designee was authorized and directed to abate the
12 emergency; and
13 WHEREAS, the Notice of Violation issued by the County of San Diego on July 3, 2007
14 has been mitigated; and
15 WHEREAS, the cost for abating the emergency and mitigating the damages caused by
16 the airplane crash on July 3, 2007 are known; and
17 WHEREAS, $500,000 was previously appropriated to pay for the mitigation,
lg transportation, and disposal of hazardous material; and
19 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
2Q California, as follows:
21 1. That the above recitations are true and correct.
22 2. That the following airplane crash cost summary report for the July 3, 2007
23 airplane crash is hereby accepted and approved.
24 ///
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AIRPLANE CRASH COST SUMMARY REPORT
Item
NRC
(Transportation and Disposal of Hazardous Waste)
Dudek Associates
(Consultant construction management and inspection
Bureau Veritas
(Consultant material testing and inspection)
Emergency Services SUBTOTAL
Wadsworth Golf Construction Company
(Golf course repairs)
Golf Course Repair Damages SUBTOTAL
Kemper Sports Management
(Overtime payroll as a result of crash)
Golf Ventures West
(Replace lawnmower)
Lost Revenue
(Delay in golf course opening)
Golf Operation Cost SUBTOTAL
TOTAL
Amount
$141,104.39
$36,199.00
$ 9,395.08
$186,698.47
$331.239.29
$517,937.76
$21,995.00
$ 7,165.00
$133.700.00
$162,860.00
$680,797.76
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad City Council and Public Financing Authority, held on the 19th day of February,
2008, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard and Nygaard.
NOES: None.
ABSENT: None.
ATTEST:
ny -
, GTty'6\er\C(\
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EXHIBIT B
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RESOLUTION NO. 43
3
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
4 CARLSBAD PUBLIC FINANCE AUTHORITY, RATIFYING A
CHANGE ORDER TO THE CONTRACT WITH WADSWORTH
5 GOLF COURSE CONSTRUCTION COMPANY AND
APPROPRIATING ADDITIONAL FUNDS FOR REPAIR OF
DAMAGE TO THE CROSSINGS AT CARLSBAD GOLF COURSE.
7 CARLSBAD MUNICIPAL GOLF COURSE. PROJECT NO. 39721.
8
9 WHEREAS, on July 10, 2007 the Carlsbad Public Finance Authority determined that the
10 damage to the golf course required immediate repair and restoration due to the scheduled
11 opening of the project; and
12 WHEREAS, $250,000 was appropriated by the Carlsbad Public Finance Authority to pay
13 for the contract change with Wadsworth Golf Course Construction to repair the site of the crash;
14 and
15 WHEREAS, the approved contract Change Order No. 13 with Wadsworth Golf Course
16 Construction was estimated to be $425,000 and the final cost is $ 331,239.29;
17 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad
18 Public Financing Authority of the City of Carlsbad, California, as follows:
19 l. That the above recitations are true and correct.
20 2. That contract 39721-2 Change Order No. 13 with Wadsworth Golf Course
Construction Company be ratified.
22 3. That additional funds for Change Order 13 with Wadsworth Golf Course
23 Construction Company be appropriated in the amount of $81,239.29 for a total revised
24 appropriation of $331,239.29.
25 ///
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad Public Financing Authority and the Carlsbad City Council, held on the held on
the 19th day of February, 2008, by the following vote to wit:
AYES: Board Members Lewis, Kulchin, Hall, Packard and Nygaard.
NOES: None.
ABSENT: None.
A'LEWrs, Chairman of the Board
ATTEST:
Secretary