HomeMy WebLinkAbout2021-05-04; City Council; Resolution 2021-099RESOLUTION NO. 2021-099
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, IDENTIFYING THE PARK IN LIEU FEE FUND — NORTH WEST
AS THE FUNDING SOURCE FOR REIMBURSEMENT TO LENNAR HOMES
FOR AGREED TO COSTS ASSOCIATED WITH THE BUENA VISTA
RESERVOIR PARK PROJECT BUDGET, AND AUTHORIZING SUCH
REIMBURSEMENT IN AN AMOUNT NOT TO EXCEED $378,500
WHEREAS, the City Council received a staff report providing a park planning update on the
Buena Vista Reservoir site on Oct. 30, 2018, and a staff report regarding the naming of the park site on •
Nov. 17, 2020; and
WHEREAS, following direction from the City Council in response to those reports, staff has
continued to support Lennar Homes in the pursuit of this park project, consistent with the terms of the
related settlement and community benefit agreements (Agreements) and has implemented the site
name of Buena Vista Reservoir Park; and
WHEREAS, the Agreements required Lennar Homes to enter into a construction agreement
(Construction Agreement) with the City of Carlsbad to provide the park improvements at a maximum
cost of $3,028,700, inclusive of all costs associated with the design, public outreach, permitting, plan
processing, and construction of the site; and
WHEREAS, construction of the Buena Vista Reservoir Park by Lennar Homes' contractor began
in November 2020 and the park was expected to be operational in the second quarter of 2021; and
WHEREAS, during the course of construction, several unforeseen issues arose; and
WHEREA, as a result of addressing those unforeseen issues, the project costs are anticipated to
exceed the referenced maximum of $3,028,700, and the park's operation is anticipated to be delayed
until the third quarter of 2021; and
WHEREAS, according to the Section 4 — Park Project Budget, of the Construction Agreement:
May 4, 2021 Item #9 Page 7 of 19
(c) In the event that circumstances change, causing the City and Lennar to agree that the cost
of the Park Project is anticipated to exceed the Park Project Budget, City shall have the
option, in its sole discretion, to either: (1) amend the scope of the Park Project to bring the
total costs within the Park Project Budget; or (2) identify alternative funding sources to
reimburse Lennar for the agreed-to amount over the Park Project Budget needed to
complete the Park Project; and
WHEREAS, a typical standard public works project, such as the development of a municipal park,
would include a project contingency of 10% to 15% percent of the estimated project costs, to account
for addressing unforeseen issues that may arise; and
WHEREAS, the Buena Vista Reservoir project is not a typical standard public works project, in
that the project is being paid for and constructed by a private party, Lennar Homes, and will become a
city park owned by the City of Carlsbad upon its' completion; and
WHEREAS, in the case of the Buena Vista Reservoir project, a typical standard public works
project contingency was not included in the park project budget. Therefore, the costs associated with
addressing unforeseen issues arising on this project must be addressed in another manner; and
WHEREAS, to date, there have been several unforeseen issues that have arisen in the
construction of this park project. Most of these issues had in common the complexities of transforming
a more than 70-year old water utility facility into a city park; and
WHEREAS, properly addressing these issues, and various other relatively minor unforeseen
issues, has resulted in additional costs to the project; and
May 4, 2021 Item #9 Page 8 of 19
WHEREAS, while a portion of the costs have already been documented and substantiated by
the applicable consultants and contractors to the satisfaction of city staff and Lennar Homes, other
reported costs still require further documentation and substantiation, and will be further vetted; and
WHEREAS, to account for the above referenced potential additional costs to date, Lennar
Homes' construction management fee, and addressing any remaining unforeseen issues through
completion of construction, staff is recommending a project contingency of $378,500, or 12.5% of the
original budget for the park project; and
WHEREAS, staff's recommendation is consistent with the extensive input received during the
project's public involvement process, which led to preparation of the final conceptual design; and
WHEREAS, sufficient funding for this contingency is available in the Park in Lieu Fee Fund —
Northwest, with no competing projects currently identified in the Northwest Park District; and
WHEREAS, the City Planner has determined that On Oct. 2, 2019, the Planning Commission
approved Conditional Use Permit No. 2018-0023 (Planning Commission Resolution No. 7348) for the
construction of a passive park on property generally located at 1605 Buena Vista Way, in Local Facilities
Management Zone 1, and on Oct. 10, 2019, the city filed a Notice of Exemption with the County of San
Diego, citing a categorical exemption for the project, per California Environmental Quality Act
Guidelines Section 15332 — In-fill development, and that no exception to the exemption as set forth in
CEQA Guidelines section 15300.2 applies.
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May 4, 2021 Item #9 Page 9 of 19
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That the Park in Lieu Fee Fund — Northwest is identified as the funding source for
reimbursement to Lennar Homes for agreed upon costs associated with the Buena
Vista Reservoir Park project budget.
3.That such reimbursement, in an amount not to exceed $378,500, is authorized.
4.That the Deputy City Manager, Administrative Services, or his/her designee is
authorized to appropriate and reimburse Lennar Homes for those costs, in an amount
not to exceed $378,500, from the Park in Lieu Fee Fund — Northwest.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 4th day of May, 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
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BARBARA ENGLESON, Cit
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Clerk
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May 4, 2021 Item #9 Page 10 of 19