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HomeMy WebLinkAbout2005-05-03; Public Financing Authority; 5; Construction of Municipal Golf Course ProjectA AB# 5 TITLE: APPROVE PLANS AND SPECIFICATIONS AND AUTHORIZE ADVERTISEMENT OF BIDS FOR THE CONSTRUCTION OF THE CARLSBAD MTG 05/03/05 DEPT.HD C,TY DEPT. Recreation ITEM EXPLANATION : In 1999, the Carlsbad Public Financing Authority, hereafter “CPFA,” was formed as a joint powers authority by the City of Carlsbad and the Carlsbad Municipal Water District with the Carlsbad City Council serving as the Authority’s Board of Directors. The Authority was created for the purposes of managing and financing the proposed Carlsbad Municipal Golf Course Project as well as any other future major capital improvement projects which may best be served by a joint powers authority. MUNICIPAL GOLF COURSE PROJECT, CONTRACT CITY MG NOS. 39721-1,39721-2, AND 39721-3 The Golf Course Project has recently secured all entitlements and permits, undergone a series of design changes resulting from final Resource Agency review and approval, and has been reorganized as a construction document package to enhance competitive public bidding of its many components. The final design of the project has been completed and the plans and specifications identified as follows are recommended to be approved by the Authority: Contract 39721 -1 : Site Grading and Partial Utilities Contract 39721 -2: Golf Course Construction Contract 39721-3: Golf Course Buildings Because of permit grading restrictions during the nesting season of resident endangered species on the property, grading of the site, to be followed by the installation of the extensive underground storm drain and water line systems, is scheduled to begin September 1, 2005 and be completed by the following March 1, 2006. This 6-month period of time is critically important to an orderly and efficient management of the schedule and sequencing of construction activities. Following the completion of the mass grading of the site, the initiation of construction of both the golf course and several buildings will begin. The complete project will require a total of approximately 20 to 22 months to complete (September, 2005 through June, 2007). Formal opening of the City’s Golf Course Project to the public is anticipated in the Summer of 2007. Staff requests the Board formally approve the plans and specifications and authorize the advertisement of construction bids. PERMANENT CLUBHOUSE: In December, 2003, the City Council authorized proceeding with the Golf Course Project including the development of the permanent clubhouse building. The City Council also directed staff to investigate other potential alternatives to financing the clubhouse construction. Since that time, staff has met and discussed a number of other possible approaches with the various Golf Course Operators who have submitted proposals to manage the completed project on behalf of the City. Staff has also discussed other alternatives with its financial advisors on this project from Fieldman, Rolapp and Associates as well as the City’s golf -5 Page 2 course economic advisors from Economic Research Associates. In all cases, it becomes a “cost of money question;” that is, the City’s access to tax exempt bond financing as well as a loan(s) from its own General Fund to the project are less expensive, and ultimately less costly to the project long term, than the availability of private financing. Staff was unable to identify a Golf Course Operator, or lender / project partner, in the private sector willing to make an equity contribution to the project. The only potential offers were loans to the project at costs well in excess of our cost of funds. Therefore, it is staffs recommendation that the financing of the project come from the combination of tax-exempt debt and advances from the City’s General Fund. In anticipation the City Council will want to revisit the permanent versus temporary clubhouse question again prior to or in conjunction with the review of the construction bids, staff will prepare some options, site layouts, and rough cost estimates for a temporary clubhouse facility. This information will be available in mid - June. FINAL DESIGN SERVICES: Attached for review and approval is Amendment No. 5 to the existing design agreement with the project consulting design team headed by P & D Consultants for the extensive final design changes to the construction documents required by the Resource Agencies, utility companies, and local agency review. The final revisions included modifications to the plan and specification sets for grading, drainage, SWPP, improvement plans, an overhead electrical pole line survey, updates to the quantities and cost estimates, habitat restoration landscape and irrigation plans, bridge plans, driving range lighting modifications, golf course planting and irrigation plans, and related engineering and architectural modifications. This Amendment No. 5 will conclude all pre-construction design activities necessary to produce the final “bid set” of construction documents for the project. The total cost of Amendment No. 5 is $99,810; funds are available in the Golf Course Enterprise Fund for these required final design expenses. Staff recommends approval of the attached Amendment No. 5. ENVIRONMENTAL REVIEW: On June 7, 2000, the Planning Commission adopted Resolution No. 4772 certifying the Environmental Impact Report for the Carlsbad Municipal Golf Course Project finding the project in compliance with the environmental regulations and policies of the City of Carlsbad. FISCAL IMPACT: In December, 2003, the City Council established a target budget of $30 million for the construction phase of this project comprised of a $15 million tax exempt municipal bond sale and a $15 million advance from the General Fund. Bond debt service will be repaid from course revenues. Any revenues in excess of the bond payments, and after payment of all other expenses of the golf course, will go to repay the General Fund advances. It has been continuously stated that the overall cost of the project will become known with the opening of the construction bids in June, 2005. AB# 5 Page 3 An extensive pre-bid cost estimating exercise has been recently completed for all construction phase project components resulting in the development of the following estimate: Contract I : Site Grading and Partial Utilities $ 6,142,181 Contract 2: Golf Course Construction 15,032,320 Contract 3: Golf Course Buildings: Maintenance Facility, 2 On-Course Restrooms, and Half-way House 2,217,686 Club house 6,686,358 Site Work 2,468,647 Total Contract 3 estimated costs: 11,372,691 Sub-Total Construction Pre-Bid Construction Estimate $ 32,547,192 Other Construction Phase Costs: Furniture, fixtures and equipment 1,640,000 Underground utilities 750,000 Reimburse Palomar Oaks Way 400,000 Other (construction mgt, inspection, environmental, etc.) 1,465,000 Total Construction Phase Pre-Bid Estimate $ 36,802,192 The $37 million cost noted above is for the construction of the course and the buildings only. It does not include any pre-opening or start-up costs which would be estimated and budgeted at a later date. It also does not include costs previously paid for the design, permitting, and required off-site mitigation measures (approximately $6 million) or the initial purchase cost of the land ($5.1 million). The previous costs have been paid from a combination of transfers from the General Fund and advances. Previous advances total $4.1 million as of March 31 , 2005. Assuming the estimate is accurate, another $21 million would need to be advanced from the General Fund balance (combined with $15 million from a bond issue) to complete the construction. The General Fund balance was approximately $63 million at March 30, 2005. Council should be aware that the bond issue under this scenario will require the full faith and credit of the Citv’s General Fund. Also, if interest rates rise prior to the issuance of the bonds, less money will be available to use towards construction. This will increase the amount of advance needed from the General Fund. As Council directed in previous actions, greens fees will need to be set at a level that will generate sufficient net income to make payments on the bonds. If there is not sufficient net income for the bond payments, the only back up revenue source will be the General Fund. In order to conclude the pre-construction design activities necessary to produce the construction document package, staff requests approval of Amendment No. 5 with P & D Consultants in the amount of $99,810. There are other pre-construction expenses including the -5 Page 4 cost to duplicate and assemble the extensive construction bid document package estimated at $1 5,000 and a final expense of an estimated $1 0,000 for title report and final mapping work with the City’s title company for this project. Thus staff requests an additional appropriation of $1 25,000. Appropriations for the construction of the course will be requested from Council after the actual bid costs are known. The golf course fund has sufficient funds available from previous advances from the General Fund. EXHIBITS: 1. Resolution No. 8 approving plans and specifications, authorize the advertisement of construction bids, approval of contract Amendment No. 5, and appropriate additional funds.. 2. Contract Amendment No. 5. 3. Plans, specifications, and contract documents for the project are on file in the Recreation Department Offices, 1200 Carlsbad Village Drive, Carlsbad, California 92008. DEPARTMENT CONTACT: Lisa Hildabrand, Finance Director, 760-602-2430, Ihild@ci.carlsbad.ca.us and John Cahill, Municipal Projects Manager, 760-602-2726, jcahi@ci.carlsbad .ca. us 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 8 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD PUBLIC FINANCING AUTHORITY APPROVING PLANS AND SPECIFICATIONS, AUTHORIZING THE ADVERTISEMENT OF BIDS, AND APPROVING A CONTRACT AMENDMENT FOR FINAL DESIGN SERVICES FOR THE CARLSBAD MUNICIPAL GOLF COURSE PROJECT WHEREAS, in December, 2003, the Board of Directors of the Carlsbad Public Financing Authority (“CPFA”) did approve proceeding with the development of the Carlsbad Municipal Golf Course Project (“Project”); and WHEREAS, CPFA has secured all final project permits and entitlements necessary for the Project; and WHEREAS, final construction documents for the Project have been completed and are offered to the Board for review and action; and WHEREAS, a contract amendment has been prepared for all final design requirements and changes for the Project; and WHEREAS, the Board hereby finds it necessary, desirable, and in the public interest to proceed with the solicitation of competitive construction bids for the Project. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Public Financing Authority as follows: That the above recitations are true and correct. That the plans and specifications for the Project on file in the offices of the Recreation Department are hereby approved and the Secretary of the Board is hereby directed to advertise in accordance with State law said documents for competitive Construction bids. That Amendment No. 5 to an existing agreement with P & D Consultants is hereby approved and the Mayor is authorized to execute said amendment. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ia 19 20 21 22 23 24 25 26 27 28 4. That an appropriation of $125,000 from the Golf Course Enterprise Fund to the project account is hereby approved. * PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad Public Financing Authority held on the 3rd day of May , 2005 by the following vote, to wit: AYES: Board Members Hall, Kulchin, Packard, Sigafoose NOES: None ABSENT: Board Member Lewis i CLAUDE 'A. LEWIS, Piehdeni of the Board - MATT HALI., Vice President ATTEST - PC RES0 NO. -2- b EXHIBIT 2 AMENDMENT NO. 5 TO AGREEMENT FOR REDESIGN SERVICES FOR THE CARLSBAD CITY GOLF COURSE PROJECT JA-- This Amendment No. 5 is entered into and effective as of the 1 day of , 2005, amending the agreement dated April 9, 2004 (the “Agreement”) by and between the City of Carlsbad, a municipal corporation, (“City”), and P & D Consultants, Incorporated, (“Contractor“) (collectively, the “Parties”) for the Carlsbad City Golf Course Project, hereafter the “Project.” MW RECITALS A. On June 7, 2004, the Patties executed Amendment No.1 to theAgreement; and B. On July 30, 2004, the Patties executed Amendment No. 2 to theAgreement; and C. On October 20,2004, the Patties executed Amendment No. 3 to theAgreement; and D. On December 3,2004, the Parties executed Amendment No. 4 to theAgreement; E. The Parties desire to alter the Agreement’s scope of work to include continuing redesign services for the Project; and F. The Parties have negotiated and agreed to a supplemental scope of work and fee schedule, which is attached to and incorporated by this reference as Exhibit “A”, Scope of Services and Fee. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. In addition to those services contained in the Agreement, as may have been amended from time to time, Contractor will provide those services described in Exhibit “A“. 2. It is the intent of the Parties that Amendment No. 5 shall provide all final and complete services by Contractor to City required to produce the final, approved, signed, and complete sets of plans, specifications, and estimates required by City to bid the Project. City will pay Contractor for all work associated with those services described in Exhibit “A on a time and materials basis not-to-exceed ninety-nine thousand eight hundred ten dollars ($99,810). Contractor will provide City, on a monthly basis, copies of invoices sufficiently detailed to include hours performed, hourly rates, and related activities and costs for approval by City. No additional compensation shall be requested by Contractor nor shall be approved by City related to this scope of work. 3. Contractor will complete all work described in Exhibit “A consistent with the schedule established for work under the Agreement. 4. All other provisions of the Agreement, as may have been amended from time to time, All remain in full force and effect. City Attorney Approved Version #05.22.01 1 7 5. All requisite insurance policies to be maintained by Contractor pursuant to the Agreement, as may have been amended from time to time, will include coverage for this Amendment. 6. The individuals executing this Amendment and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Amendment. CONTRACTOR CITY OF CARLSBAD, a municipal corporation of the State of California *By: $9 sign he re) MATT HALL, Mayor Pro-Tern John L. Kinley, President (print namehitle) john.kinley@pdconsultants.com ATTEST: (e-mail address) **By: City Clerk (si& here) (print name/titl6) odd kkdWfl/Sf. 1/,te &-srdtdf If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation, Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-president "Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer@) signing to bind the corporation. APPROVED AS TO FORM: RONALD R. BALL, City Attorney By: &dr Deputy City Att rney 2 City Attorney Approved Version #05.22.01 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT to be the person@) whose name(*is/ata subscribed to the within instrument and acknowledged to me that he/ske#key executed the same in hislhPllthPir authorized capacityw, andthat by his/he&bek signature@ on the instrument the person(& or the entity upon behalf of which the person(% acted, executed the instrument. Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reaftachment of this form to another document. Description of Attached Document Signer(s) Other Than Named Above: sorporate Officer - Title(s): 0 Partner - 0 Limited 0 General 0 Attorney-in-Fact 0 Guardian or Conservator 0 1999 National Notary Association . 9350 De Sofo A=.. PO Box 2402. Chatsworth, CA 91313-2402 ' ww.nationalnotary.org Prod. No. 5907 Rewder: Call Toll-Free 1-800-876-&327 Exhibit “A” Carlsbad Golf Course CCC Final Revisions A cost to prepare final golf course revisions per CCC comments for submittal to the City by February 18th is indicated below as Exhibit “A” Carlsbad Golf Course Final CCC Revisions. These fees are not a part of the fees described above in Carlsbad Golf Course CCC Revisions / P&D & HDR. Fees for P&D and KTUA for service provided during the month of January 2005 are included in Exhibit “A”. A. Services Provided by P&D Task 1: Earthwork and Grading Balance Adjustments Prepark earthwork calculations, cut-fill exhibit, earthwork distribution evaluation resulting from CCC changes and determine potential quantity adjustments from future CCC amendment changes. Adjust elevations where needed to achieve a balance andor create the desired earthwork distribution scenario. Also, make final minor adjustments per Gregg H. Nash Design golf course grading revisions. Task 2: Grading / Improvement Plans Prepare revised final construction plans in response to CCC changes as defined by the revised plans for grading and improvements. This effort will include the following tasks. a 0 Finalize cart path re-routing. 0 a a a Complete re-grading of all affected areas to conform to revised grading limits. Mitigate adverse impacts to SDG&E access roads. Complete storm drain system re-design and perimeter drainage improvements. Bridge relocation adjustments and coordination with Moffatt Nichol. Provide erosion Control/BMps/Water Quality plan and report revisions. Provide modifications as may be requested by SDG&E to access roads andor grading adjustments fi-om electrical line sag analysis. Make final adjustments per Gregg H. Nash Design golf course revisions. Provide details, notes and title sheet for plan submittal. Task 3: J Drainage Report & SWPP Prepare revised hydrology and hydraulic maps and calculations to respond to the changes in drainage patterns, tributary areas, possible diversion, storm drain re-design, pipe routing and sizing, design and placement of all drainage facilities as a result of the changes imposed by the ccc. Task 4: Pole Line Survey Provide field services for recently installed SDGE single pole electrical line to determine location of poles and lowest line insulators to facilitate the plotting and line sag analysis by SDG&E. S ://Gerritsen/cahillltr.doc Task 5: Quantity & Cost Estimate Prepare a revised quantity take off and estimate of probable cost based on best available construction industry unit price information. This task will be accomplished at the end of the plan review process and will reflect all CCC plan revisions and plan review corrections. Task 6: Specifications Prepare revised specifications based on the latest revised construction drawings, reports and support documents. Task 7: Meetings & Coordination Attend meetings and provide coordination for the project team for the fee amount shown on the subsequent fee schedule. B. Services Provided by KTUA The following is the scope of work for final revised documents to be prepared by KUTA for this work effort. Task 1: Landscape Construction Document Phase This scope will involve revisinglpreparing the existing drawing package for the landscape and irrigation plans as required by the redesigned golf course and erosion controVmitigation areas. The majority of changes and revisions will be for the irrigation drawings for the planted areas that were changed due to CCC requests. Most of the planting plans have been completed by your office, however our office will need to plan check them to the satisfaction of our standards. All work will be coordinated with your firm and consultants, prepared using AutoCAD with most current plans on disk as received from you. It is understood that your firm will provide the necessary AutoCAD digital files base that will include the proper formatted site plan / base sheets for om firm to accomplish the work on. C. Services Provide by Moffatt & Nichol The following describes our understanding of the required scope of additional work for revisions to bridges B,C and E (work beyond that included in our Initial proposal dated September 3, 2003) that will be required to carrjthis project to the final document level. Task 1: Farm Road Bridge / Bridge “B” S://Gerritsen/cahillltr.doc a e e e Task 2: e e e e Task 3: e e e e Revise the Farm Road Bridge Design Criteria fiom H10 Loading to H20 Loading. Revise the bridge structural analyses. Revise the details for the abutments, bent caps, columns and footings based on the revised loading. Revise the specifications and quantities based on the above. Central Bridge / Bridge “C” Increase the Central Bridge Length and adjust the location to conform to the revised HMP limits shown on plan Sheet 23 stamped 1-17-05. Revise the bridge structural analyses. Revise the plan and detail sheets based on the revised location. Revise the quantities base on the above. Gorge Bridge / Bridge “E” Increase the Gorge Bridge Length and adjust the location to conform to the revised HMP limits shown on plan Sheet 25 stamped 1-17-05. Revise the bridge structural analyses. Revise the plan and detail sheets based on the revised location. Revise the quantities base on the above. D. Services Provide by HDR The following is the scope of work to be provided by HDR. Task 1: Prepare Application (This work was completed in January and is not included) Prepare application package and provide related documents, data tabulations and exhibits as needed pursuant to obtaining a CCC permit. Also, provide field reconnaissance to respond to CCC comments and revise plant palette and restoration plan. Task 2: ,< Attend meetings and provide coordination as requested by the City. E. Services Provided by B&A Task 1: Driving Range Lights Provide revisions to golf course driving range lights due to revisions to grading plan. S ://Gerritsen/cahillltr.doc F. Services Provided by Greg H. Nash, Inc. Greg H. Nash, Inc. is hereby submitting the following tasks and fees to modify the golf course design of the Carlsbad Municipal Golf Course. Task 1: Grading Plan Revisions Redesign and modify the general grading plans of the golf holes that have been impacted by the final HMP delineation. Task 2.: Green Details & Drainage Redesign and modify green details and green drainage plans that have been impacted by the final HMP delineation and revised earthwork quantities. Task 3: Turfing Plans Revise the turfing plans where golf holes have changed that have been impacted by revised design and grading. Task 4: Irrigation Plans Revise the irrigation plans of golf holes where turf limits have been impacted by revised design and grading. Task 5: Landscaping plans Revise the landscaping plans of golf holes that have been impacted by design, grading and the HMP delineation. S ://Gerritsedcahillltr.doc /3 Exhibit “A” Carlsbad Golf Course Final CCC Revisions: The following are the proposed fees for Exhibit “A” Carlsbad Golf Course Final CCC Revisions. S ://Gerritsen/cahillltr.doc CITY OF CARLSBAD GOLF COURSECITY OF CARLSBAD CITY OF CARLSBAD GOLF COURSEGOLF COURSE GOLF COURSE CONSTRUCTIONGOLF COURSE CONSTRUCTIONGOLF COURSE CONSTRUCTION3 Contracts:-Mass grading and site utilities;-Golf course construction;-All buildings;-Clubhouse-Maintenance facility-Halfway house-2 On-course restrooms3 Contracts:3 Contracts:--Mass grading and site utilities;Mass grading and site utilities;--Golf course construction;Golf course construction;--All buildings;All buildings;--ClubhouseClubhouse--Maintenance facilityMaintenance facility--Halfway houseHalfway house--2 On2 On--course restroomscourse restrooms GOLF COURSE LAYOUTGOLF COURSE LAYOUTGOLF COURSE LAYOUT INDUSTRIAL PAD SITESINDUSTRIAL PAD SITESINDUSTRIAL PAD SITES Existing CPD Training RangeExisting CPD Training Range COLLEGE BOULEVARDView of 7thHoleCOLLEGE BOULEVARDCOLLEGE BOULEVARDView of 7View of 7ththHoleHole11 WATERFALLat 7thHole GreenWATERFALLWATERFALLat 7at 7ththHole GreenHole Green CLUBHOUSECLUBHOUSECLUBHOUSE MAINTENANCE BUILDINGMAINTENANCE BUILDINGMAINTENANCE BUILDING GOLF COURSE FINANCINGGOLF COURSE GOLF COURSE FINANCINGFINANCING Financing SourcesFinancing SourcesFinancing Sources$15,000,000$15,000,00021,000,00021,000,0001,000,0001,000,000$37,000,000$37,000,000‹‹Bond ProceedsBond Proceeds‹‹New AdvancesNew Advances‹‹Previous AdvancesPrevious AdvancesTotalTotalFunding Sources Funding Sources (approximate):(approximate):$37,000,000$37,000,000**Construction Cost Construction Cost EstimateEstimate* Does not include public art or pre-opening and start up costs Bond ProceedsBond Proceeds‹‹Goal: Goal: ––Issue maximum amount possible that Issue maximum amount possible that can be debt serviced by net income.can be debt serviced by net income.‹‹Anticipate Anticipate ––$1.3 million net income:$1.3 million net income:––Provides $15 million in project fundsProvides $15 million in project funds‹‹Higher interest rates = less Bond Higher interest rates = less Bond proceedsproceeds‹‹Less Bond proceeds = higher Less Bond proceeds = higher advance from General fundadvance from General fund Golf Course Construction FinancingGolf Course Golf Course Construction FinancingConstruction FinancingRoundsNet Income$GreensFeesBondProceedsInterestRatesGeneral FundAdvances Golf Course Construction FinancingGolf Course Golf Course Construction FinancingConstruction Financing55,000RoundsNet Income$1.1 mmGreensFees$69BondProceeds$15 mmInterestRates4.8%General FundAdvances$21 mm InterestRates4.8%5.8%BondProceeds$ 15 13 mmGolf Course Construction FinancingGolf Course Golf Course Construction FinancingConstruction Financing55,000RoundsNet Income$1.1 mmGreensFees$69General FundAdvances$ 2123 mmNumbers are for illustrative purposes only. Golf Course is a BusinessGolf Course is a Business‹‹Not a required service or captive Not a required service or captive market like water, sewermarket like water, sewer‹‹Market driven, CompetitiveMarket driven, Competitive––Many other choices for customersMany other choices for customers‹‹No guarantee of successNo guarantee of success––If net income not achieved, General If net income not achieved, General fund must subsidizefund must subsidize Golf Course Operations FinancingGolf Course Operations Golf Course Operations FinancingFinancing55,000RoundsNet Income$1.3 mmGreensFees$69Debt ServiceGeneralFund Potential Range forGreens Fees (including cart)Potential Range forGreens Fees (including cart)$99$99--125125$74$74--7575Sat Sat ––SunSun$84$84--105105$64$64--7575FridayFriday$75$75--9595$54$54--6363WeekdayWeekdayNonNon--ResidentResidentResidentResident*Other rate categories not shown may include seniors, juniors, twilight, county, etc. Greens fees recommendations will be made by operator and set by the JPA Board. ApproximateApproximateValueValue$12.5 million$12.5 millionTotal ValueTotal Value$ 5.4 million$ 5.4 millionParcel 2 Parcel 2 ––5.4 net acres5.4 net acres$ 7.1 million$ 7.1 millionParcel 1 Parcel 1 ––6.4 net acres6.4 net acresIndustrial LotsIndustrial Lots CARLSBAD MUNICIPAL GOLF COURSECONCLUSION