HomeMy WebLinkAbout2005-12-06; Public Financing Authority; 11; Additional Funds for Municipal Golf CourseAB# 11
VITG. 12/6/2005
IEPT. ENG
It is recommended the Board of Directors of the Carlsbad Public Financing Authority ADOPT
RESOLUTION NO. authorizing appropriation of additional funds for the Carlsbad
Municipal Golf Course, Project No. 39721-1.
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- TITLE: AUTHORIZE ADDITIONAL APPROPRiATiON OF FUNDS DEPT. HD:
CITY ATTY. K< FOR THE CARLSBAD MUNICIPAL GOLF COURSE,
PROJECT NO. 39721-1
ITEM EXPLANATION:
This Agenda Bill addresses two appropriation requests for the golf course project.
On July 26, 2005 the Carlsbad City Council, serving as the Board of Directors for the Carlsbad Public
Financing Authority (CPFA), awarded three contracts, mass grading, golf course construction, and club
house construction totaling $35,110,276 plus a 5% construction contingency of $1,755,513 for all three
contracts. The Board authorized additional construction-related expenses of $5,855,000, for a total
construction cost of $42,720,790. Although the adopted budget for fiscal year 2005-06 included an
appropriation for the Golf Course construction cost of $36,803,000, no additional appropriations were
requested at that time to fund the difference between the adopted budget and the approved total cost of
the project. In order to fund the approved construction cost, an additional appropriation of $5,917,790 is
being requested at this time.
The second appropriations request is for Change Order No. 1 to the grading contract in the amount of
$888,000. In discussions with the contractor and prior to the start of construction of the mass grading, it
was discovered that the cost for remedial grading was not included in the original construction documents
as a bid item for the mass grading. The estimated cost is $888,000 (1 1.5% of the total bid for the mass
grading contract), and staff is requesting an additional appropriation for the change order at this time as
well.
To offset the cost increase of Change Order No. 1, Bid Item 21 in the amount of $234,003 could be
deleted from the mass grading contract. Bid Item 21 is for the construction of a retaining wall to increase
the future building pad between the club house area and the water tank at the northerly terminus of
Hidden Valley Rd. If a wall is needed in the future, it can be constructed as part of the ultimate
development of this building pad. The expansion of this pad is not required as part of the golf course
project. There currently are no development plans for this pad other than a dirt lot for over flow parking
for special events. The removal of the wall at this time decreases the building site area by an estimated
15,600 square feet. It is anticipated that the building pad and slope area will be maintained by the golf
course operator.
There are three different options for the Board’s consideration:
1. Authorize an additional appropriation in the amount of $5,917,790, the difference between the
adopted budget and the approved total cost, plus $888,000 for Change Order No. 1 to the grading
contract, for a total appropriation of $6,805,790.
2. Direct staff to eliminate Bid Item 21 to offset the cost of the remedial grading and authorize an
additional appropriation in the amount of $6,571,787 ($5,917,790 plus $653,997 for Change Order
No. 1).
3. Authorize an additional appropriation in the amount of $5,917,790 to fund the construction cost as
approved and not appropriate any additional construction contingency funds at this time. If the Board chooses this option, staff will most likely need to come back for an additional appropriation
at a later date for any subsequent change orders.
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Page 2 of Agenda Bill No. II
Course Construction 17,564,149
Buildings 11,194,105
Construction misc. 5,855,000
Total estimated cost $ 43,608,790
ENVIRONMENTAL REVIEW:
Adopted 2005-06 budget - previous appropriation $ 36,803,000
Additional appropriation needed for approved construction costs 5,917,790
Additional appropriation for Change Order No. 1 888,000
Total Appropriations Request $ 6,805,790
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 prior years, funds totaling $12.0 million were expended or obligated on pre-construction activities and
the purchase of land for the golf course. On July 26, 2005 staff provided the Carlsbad Public Financing
Authority (CPFA) Board with an estimate of the total cost of $42.7 million for the construction phase of the
golf course, as previously mentioned. Post construction costs for start-up and pre-opening/marketing
costs are estimated at $2.6 million; funding for those activities will be requested at a later date. If funding
for Change Order No. 1 is approved for $888,000, the revised cost for golf course, including pre- and
post-construction costs, is $58.2 million.
The table below reflects the approved construction Dhase cost of $42.7 million plus an additional
$888,000 for Change Order No. 1. , prior appropriations, and the additional two appropriation amounts
requested:
Carlsbad Municipal Golf Course - Construction Phase Costs
EXHIBITS:
1. RESOLUTION NO. 15 authorizing appropriation of additional funds for the Carlsbad Municipal Golf Course, Project No. 39721-1.
DEPARTMENT CONTACT: SKI P HAMMAN N, (760) 602-2780 X7320, sham m @ci .cads bad .ca. us
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RESOLUTION NO. 15
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD PUBLIC FINANCING AUTHORITY AUTHORIZING
THE APPROPRIATION OF ADDITIONAL FUNDS FOR THE
CARLSBAD MUNICIPAL GOLF COURSE, PROJECT NO. 39721-1.
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 approved by the
Board; and
WHEREAS, the CPFA has determined the estimated total cost for the Golf Course
Construction is $42,720,790; and
WHEREAS, an appropriation was previously approved in the fiscal year 2005-06
Operating and Capital Improvement Program Budget of $36,803,000; and
WHEREAS, an additional appropriation of $5,917,790 is needed to fund the Golf Course
Construction; and
WHEREAS, funding for this appropriation is provided by the Carlsbad Municipal Golf
Course Project fund.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Public
Financing Authority of the City of Carlsbad, California, as follows:
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2. That an appropriation of $5,917,790 from the Golf Course Fund is hereby
That the above recitations are true and correct.
authorized.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Directors of
the Carlsbad Public Financing Authority held on the 6th day of
Decenber , 2005 by the following vote, to wit:
AYES: Board Members Lewis, Hall, Kulchin, and Packard
NOES: Board Member Sigaf oose