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
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DEPT. HD. ^'/-^
CITY ATTY. H^
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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.
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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 CourseSEMA CONSTRUCTION, INC.- $7,721,463.48mass gradingJAYNES CORPORATION- $10,661,052.00golf course buildingsWADSWORTH GOLF COURSE CONSTRUCTION COMPANY (Wadsworth)- $16,727,761.00golf course constructionA 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 CourseSEMA –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 CourseSEMA 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 CourseSEMA still has to complete:Crib wall constructionStorm drainsWaterlinesOther minor work
Carlsbad Municipal Golf CourseJaynes Corporation -began work on Nov. 1, 2005 on both the clubhouse & maintenance facility building.
Carlsbad Municipal Golf CourseThe maintenance building masonry walls are complete.
Carlsbad Municipal Golf CourseThe clubhouse masonry work is well under way.
Carlsbad Municipal Golf CourseWadsworth has begun fine shaping greens & tees.# 8 green
Carlsbad Municipal Golf CourseWork 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 CourseIn 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.