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HomeMy WebLinkAbout2006-02-07; Public Financing Authority; 13; Additional Funds Municipal Golf Course1 CARLSBAD PUBLIC FINANCING AUTHORITY • AGENDA BILL AB# MTG. DEPT. 13 2/7/2006 ENG TITLE: AUTHORIZE ADDITIONAL APPROPRIATION OF FUNDS FOR THE CARLSBAD MUNICIPAL GOLF COURSE, PROJECT NO. 39721-1 xT/A s? DEPT. HD. ^'/-^ CITY ATTY. H^ m^~~^***^ CITY MGR. <&P RECOMMENDED ACTION: It is recommended the Board of Directors of the Carlsbad Public Financing Authority ADOPT RESOLUTION NO. 17 authorizing appropriation of additional funds for the Carlsbad Municipal Golf Course, Project No. 39721-1. ITEM EXPLANATION: 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 budget of $42,720,790. The adopted budget for fiscal year 2005-06 included an appropriation for the Golf Course construction cost of $36,803,000. On December 6, 2005, the CPFA approved an additional appropriation of $5,917,790 to fund the difference between the adopted budget and the approved total cost of the project in an amount of $42,720,790. To complete the project as proposed, staff is requesting an additional $2,936,700 be added to the existing construction contingency of $1,755,513 for a revised construction contingency of $4,692,213 which is 13.4% of the original 3 bids. There are a number of significant cost impacts to the mass grading contract that exceed the intent of the existing construction contingency, which are included below. For tracking purposes the items have been listed as Change Orders or Potential Change Orders. The Potential Change Orders are in the process of being formalized to Change Orders. Change Order 1 As part of the mass grading contract, the soils report identified approximately 320,000 cubic yards (CY) of remedial grading necessary to complete the mass grading of the golf course which was not included in the 1.1 million CY of mass grading indicated in Bid Item 8. During execution of the mass grading contract, the Contractor raised the question of remedial grading and the probability that the grading necessary to complete the raw mass grading and remedial grading would exceed the quantity as indicated in Bid Item 8, Grading & Compaction. The CPFA negotiated a fair and equitable price of $2.22/CY to compensate the Contractor for overages in this bid item. Change Order No. 1 was written for that purpose. Currently, the remedial grading quantity is estimated to be 460,000 CY above the estimated quantity in Bid Item 8 for an estimated cost of $1,021,200. Due to the strict time constraints that were dictated by the various resource agency permits, the mass grading contractor had to be aggressive in prosecuting this phase of golf course construction. For that reason, all grading associated with the mass grading contract is nearing completion. Failure to complete the mass grading operation by February 28, 2006 would have forced the CPFA to shut down the project because of the gnatcatcher nesting season. This in turn would have impacted the golf course construction and the clubhouse contracts. Under this scenario, mass grading would not be allowed to resume until September 2006 at substantial financial and entitlement risk to the CPFA. Page 2 Change Order 5 The mass grading plans include retaining walls to increase the buildable pad areas for future development of the Industrial pad on College Blvd., northwesterly of Palomar Point Way, and the Conference Center Pad adjacent to the Clubhouse, Bid Items 20 and 21 respectively. The retaining walls increase the building pad for the Industrial Pad by approximately one acre and the Conference Center Pad by approximately one-third acre. During the course of final review by the soils engineer to validate the original design assumptions of the crib wall construction for Bid Item 20 of the mass grading contract, concern arose regarding the stability of the fill supporting the large crib wall at the top of the fill. To address this concern and meet an acceptable design safety factor, the soils engineer required the compaction to be increased from 90% to 95%, resulting in unanticipated extra effort by the contractor and an estimated cost increase of $213,500. Change Order 6 The original bid documents for the mass grading included Best Management Practices (BMPs) as part of the project; however, the bid items are not sufficient to meet the requirements by the Regional Water Quality Control Board (RWQCB) for a project directly discharging to impaired water bodies and environmentally sensitive areas. There are a number of reasons for the significant cost increase for BMPs, such as: • It was assumed that BMPs installed during the Phase I clearing and grubbing operation would be functional at the time of mass grading; however, these BMPs were degraded by the winter storms of 2005 requiring replacement and maintenance. • The plans did not address the necessity of maintaining, modifying, removing and replacing the BMPs to accommodate the various phases of construction through the rainy season. • The science of erosion control and the standards for BMPs have evolved to become more sophisticated and effective to the point that the standards that were applicable when the plans were first drawn up are either antiquated or unacceptable. It should be noted that the City is implementing BMPs on this site as would be required of any other development project in the city. It is estimated that these additional BMPs to date will add approximately $800,000 to the contract after all credits have been applied. Staff anticipates this number to increase to approximately $900,000 under this contract. Quantifying the amount of BMPs and the degree of maintenance necessary to protect the site of any mass grading project with any reasonable accuracy is very difficult, if not impossible. Potentially the penalty for not properly implementing adequate BMPs can be as severe as the associated costs of the BMPs. Potential Change Order 7 The Contract Plans and bid schedule (Bid Item 10) estimated 180,000 CY of material must be 'exported' (East side to West side) from the southeast corner of College Blvd. and Palomar Airport Road to balance the raw earthwork as referenced in the bid item. When the site was surveyed at the time of construction, it was discovered that it had been used as a soil disposal area after the original topographic map was prepared in 1993. The result is an estimated increase of 80,000 CY to the bid item for a total of 260,000 CY. Field adjustments were made to minimize the impact; however, the estimated additional cost to the Contract will be $280,000. Potential Change Order 8 The original estimated bid quantities for the Criblock Retaining Walls, Bid Item 20 Industrial Pad and Bid Item 21 Conference Center Pad, as referenced in Schedule A: Site Construction, were understated. Calculations suggest that the estimate included only the exposed surface area, not the portion below grade that is necessary for structural support. The resulting staff field review with the Contractor and Soils Engineer has estimated there will be an additional cost to the Contract of $522,000. The distribution of costs of the respective bid items is as follows: $227,000 for the Industrial Pad and $295,000 for the Conference Center Pad. Page 3 The construction on the retaining wall at the conference center has not been completed at this time and could be eliminated from the project to offset some of these additional costs and built at a latter date without affecting the golf course project. The total cost of the conference center retaining wall is now estimated at $650,000. The industrial pad retaining wall is under construction. The industrial pad retaining wall cannot be eliminated due to the fact it is a mitigation area. The industrial pad wall is estimated at $1,413,000, which includes the wall cost and extra compaction effort. The construction of the Conference Center retaining wall, Bid Item 21, has been put on hold pending direction from the Board. If Bid Item 21 is deleted, it would help offset some of the additional cost. Staff needs direction from the Board whether or not to construct the retaining wall at the Conference Center. The additional costs are summarized below: Change Order 1 Change Order 5 Change Order 6 Potential Change Order 7 Potential Change Order 8 Remedial Grading Additional Crib Wall Compaction Additional BMPs Additional Export Additional Crib Wall Total Additional Contingency Original Contingency Revised Contingency $1,021,200 $213,500 $900,000 $280,000 $522,000 $2,936,700 $1,755,513 $4,692,213 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: There are two tables shown below. The first table summarizes the sources and uses for the golf course project from inception to-date. The table also includes all pre-construction and design costs in addition to the current construction and grow-in costs. The second table summarizes appropriations to-date and additional appropriation requests. Page 4 CARLSBAD MUNICIPAL GOLF COURSE FUNDING Sources: General Fund Contributions General Fund Advances (*) Bond Proceeds Interest and other revenues (estimated) Total Sources Uses: Land Pre-construction Municipal Golf Course Construction Grow-in/Opening Costs July 26, 2005 Prior Changes 7,887,079 31,689,985 15,000,000 2,600,000 57,177,064 5,075,228 6,781,046 42,720,790 2,600,000 Total Uses 57,177,064 * General Fund Advances are net of estimated repayment from bond proceeds. Current 12/31/2005 Change 7,887,079 2,936,700 34,626,685 15,000,000 2,600,000 2,936,700 60,113,764 5,075,228 6,781,046 2,936,700 45,657,490 2,600,000 2,936,700 60,113,764 Appropriations Summary for Golf Course - Construction Phase Activity Grading Construction Buildings Construction - Other Totals Prior Appropriations $ 8,107,536 $ 17,564,149 11,194,105 5,855,000 $ 42,720,790 $ Current _ . . _ . ._ . Revised TotalRequest 2,936,700 $ 11,044,236 17,564,149 11,194,105 5,855,000 2,936,700 $ 45,657,490 EXHIBITS: 1. RESOLUTION NO.17 authorizing appropriation of additional funds for the Carlsbad Municipal Golf Course, Project No. 39721-1. DEPARTMENT CONTACT: SKIP HAMMANN, (760) 602-2780 X7321, shamm@ci.carlsbad.ca.us H 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 and appropriated funds in the amount of $42,720,790; and WHEREAS, an additional appropriation of $2,936,700 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:18 1. That the above recitations are true and correct.19 2. That an appropriation of $2,936,700 from the Golf Course Fund is hereby authorized. 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3. That the Board does herby grant the CPFA Executive Director construction change order authority of an additional contingency amount of $2,936,700 for the three contracts, 39721- 1, 39721-2, and 39721-3 for a total revised amount of $4,692,213 without requiring additional Board action. PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Directors of the Carlsbad Public Financing Authority held on the 7th day of February , 2006 by the following vote, to wit: AYES: Board Members Lewis, Hall, Kulchin NOES: Board Members Packard, Sigafoo^ ABSENT: None., CLAUDE A. LEWIS, ATTEST: OCvDTSecretary Carlsbad Municipal Golf Course Carlsbad Municipal Golf Course™SEMA CONSTRUCTION, INC.- $7,721,463.48™mass grading™JAYNES CORPORATION- $10,661,052.00™golf course buildings™WADSWORTH GOLF COURSE CONSTRUCTION COMPANY (Wadsworth)- $16,727,761.00™golf course construction™A 5% contingency was provided for all three projects in the amount of $1,755,513.On July 26, 2005, the CPFA awarded 3 contracts: Carlsbad Municipal Golf Course™SEMA –began construction on Sept. 8, 2005; has completed the mass grading and rough shaping.™SEMA –delivered the maintenance facility & clubhouse building pads to Jaynes Corporation on Nov. 1, 2005 in accordance with the contract requirements. Carlsbad Municipal Golf Course™SEMA is required by contract to deliver the entire golf course site to Wadsworth by March 1, 2006.™SEMA has delivered holes 1, 5, 6, 8 & 9 to Wadsworth ahead of schedule. Carlsbad Municipal Golf Course™SEMA still has to complete:™Crib wall construction™Storm drains™Waterlines™Other minor work Carlsbad Municipal Golf Course™Jaynes Corporation -began work on Nov. 1, 2005 on both the clubhouse & maintenance facility building. Carlsbad Municipal Golf Course™The maintenance building masonry walls are complete. Carlsbad Municipal Golf Course™The clubhouse masonry work is well under way. Carlsbad Municipal Golf Course™Wadsworth has begun fine shaping greens & tees.# 8 green Carlsbad Municipal Golf Course™Work is being completed on or ahead of schedule. Carlsbad Municipal Golf CourseChange Order 1 Remedial Grading $1,021,200Change Order 5 Additional Crib Wall Compaction$213,500Change Order 6 Additional BMPs $900,000Potential Change Order 7 Additional Export $280,000Potential Change Order 8 Additional Crib Wall $522,000Total Additional Contingency$2,936,700Original Contingency $1,755,513Revised Contingency $4,692,213 Carlsbad Municipal Golf Course™In summary, staff is requesting an additional $2.9 million in funding for the additional work encountered during the mass grading project. These funds are needed at this time to pay the contractor for work performed.