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HomeMy WebLinkAbout2013/04/16 Item 08CITY COUNCIL AGENDA STATEMENT ~~t~i cnv of CHULA VISTA Apri116, 2013 Item t~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDERS FOR OTAY PROJECT, L.P. FOR THE CONSTRUCTION OF HERITAGE ROAD RESOLUTION OF THE CITY COUNCIL" OF THE CITY OF CHULA VISTA AUTHORIZING BALDWIN AND SONS, LLC TO CONSTRUCT HERITAGE ROAD AND RECEIVE CREDIT AGAINST DEVELOPMENT IMPACT FEES. SUBMITTED BY: DIRECTOR OF DEVELOPMENT SERVICES REVIEWED BY: CITY MANAGER ~~// ASSISTANT CITY ANAGEIf~ 4/STHS VOTE: YES ^ NO SUMMARY Otay Project, L.P. has constructed a portion of Heritage Road from Olympic Parkway to Santa Victoria Road, in conjunction with the development of Otay Ranch Vi]lage 2 and has received Transportation Development Impact Fee (TDIF) credits for a portion of the costs of such construction. Otay Project, L.P. is now requesting TDIF Credits for the balance of unreimbursed TDIF eligible costs. In addition, Baldwin and Sons has requested to complete the construction of Heritage Road and receive reimbursement in TDIF Credits. This roadway is within the TDIF program and, therefore, eligible construction costs may be credited against the payment of TDIF fees for the development. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity consisting of approval of the TDIF reimbursement and authorization to construct and receive credit for the construction of a portion of a roadway, for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed activity was adequately covered in previously adopted Second-Tier Environmental Impact Report (EIR 02-02) for the Otay Ranch Village Two, Three and Portions of Village Four. Thus, no further environmental review or documentation is required. 8-1 April 16, 2013 Item ~5 Page 2 of 4 RECOMMENDATION Council adopts the resolutions. BOARDS/COMMISSION RECOMMENDATION Not applicable. Heritage Road Reimbursement to Otav Proiect, L.P. Heritage Road is a Six Lane Prime Arterial that currently connects Telegraph Canyon Road in the north to Olympic Parkway in the south. With the development of Village Two, Heritage Road will continue on to Main Street in the south. This portion of Heritage Road is a regional facility that provides connectivity between Otay Ranch Village One, One west, Two and Three. The construction of Heritage Road between Olympic Parkway and Santa Victoria is identified as Facility 57 in the Transportation Development Impact Fee (TDIF) program and is eligible for reimbursement. On May 23, 2006, as a condition of approval of the Final Map No. 15350, Otay Project, L.P. was required to construct Heritage Road. The grading of Heritage Road began in November of 2006. At that time, the developer planned to establish a Community Facilities District (CFD) over the entirety of Otay Ranch Village Two to finance the construction of the road. Both the formation of the CFD and the construction of Heritage Road stalled with the downturn of the housing mazket. On May 11, 2011, Otay Project, L.P. submitted their request for reimbursement for the construction of Heritage Road from Olympic Parkway to Santa Victoria Road. The request includes TDIF eligible change orders for grading and drainage costs and their associated soft costs. The change orders can be attributed to grading changes and design adjustments to the plans. The current TDIF program identifies this portion of Heritage Road as Facility No. 57 (See Exhibit 1). An audit of the work completed by Otay Project, L.P. on Heritage Road from Olympic Pazkway to Santa Victoria Road was performed to determine the amount of TDIF eligible costs of the construction. The audit concluded that the total TDIF eligible costs was $2,680,152.56. Since the date of the audit, a change order submitted and addition work was performed in the amount of $132,315.83 (see Table 1), resulting in a total audited reimbursement of $2,812,468.40. According to TDIF directives and procedures, once the construction contract is awarded, Otay Project is permitted an advance of TDIF credits, up to seventy five percent of the contract amount. Otay Project has awarded a contract for construction and was previously reimbursed an amount of $2,285,000.00 in TDIF credits, which constitutes seventy five percent of the contract amount to construct Heritage Road. This leaves $527,468.40 in TDIF credits to be applied to Otay Project's account. 8-2 April 16, 2013 Item Page 3 of 4 Table 1. Heritage Road Facility No. 57 Actual Cost Previously audited components $2,680,152.56 Change Orders $132,315.83 Eligible TDIF Costs $2,812,468.40 Reimbursement previously received by Otay Project LP $2,285,000.00 Remaining Credits to be applied to Otay Project $527,468.40 Authorization for Baldwin and Sons, LLC to Construct HeritaEe Road and Obtain Reimbursement in the Form of TDIF Credits. With the resumption of the construction of residential housing in Village Two arises the need to complete the construction of Heritage Road. Another developer, Baldwin and Sons, in a letter dated March 4, 2013, requested that they be authorized to build and to receive reimbursement in the form of TDIF Credits for the construction of the remaining portion of Heritage Road. Heritage Road is identified as Project No. 57 in the City's Transportation Development Impact Fee (TDIF) program. The first stage of construction to be completed will be an interim two-lane road from Olympic Parkway to Santa Victoria. The interim two-lane road will be reimbursed with TDIF Credits. The Developer would provide maintenance of the road until the road has been built to its ultimate condition and the City of Chula Vista has accepted the road for maintenance. Under TDIF Ordinance #2802, a developer may request reimbursement or credit for the construction of facilities identified in the TDIF project list. It is anticipated that developers will construct most of the major projects listed in the TDIF Program and that developers will earn credits against future fees at the building permit stage. Should the credits from future projects not be enough to offset the developers' front-end expense for a particular project, the City will reimburse additional monies to the developers at the time that the City feels there are adequate funds to do so and if reimbursement will not delay needed future projects. The following information is provided in accordance with the TDIF ordinances and Directives and Procedures for TDIF Reimbursement/ Credit Process: The letter dated March 4, 2013 requesting reimbursement for construction of roadway facilities identified in the City's TDIF Program. 2. A preliminary cost estimate has been reviewed and approved by City Staff The City has approved the grading, improvement, and landscape plans for this project. 8-3 Apri116, 2013 Item ~, Page 4 of 4 4. The right of way for Heritage Road has been dedicated on Map No. 15350. All permits and environmental clearances necessary for construction of the project have been obtained as required by the Public Works and Development Services Directors. Tonight, Council will consider approval of the change orders that in the amount of $132,315.83 and the issuance of TDIF Credits in the amount of $539,617.72 in favor of Otay Project L.P and the authorization of Baldwin and Sons, LLC to complete construction of Heritage Road and receive TDIF credits for such work. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property that is the subject of this action. CURRENT FISCAL IMPACT There is no impact to the General Fund from this action. As the cost of Heritage Road construction would have been paid out of TDIF funds, the fact that the Developer has constructed the road obviates their need to pay such costs in the future. The credits are simply a book-keeping procedure to acknowledge that the developers portion of the TDIF, up to the amount of the credit, has already been paid by the construction. ONGOING FISCAL IMPACT There is no impact the construction for Heritage Road will be borne by the Developer until Heritage Road is completed to it ultimate condition and has been accepted by the City. ATTACHMENTS Exhibit A. TDIF Facility 57. Exhibit B Letter dated March 4, 2013 Requesting Authorization of Construction and reimbursement for Heritage Road Exhibit C Cost Estimate ExhibitA 8-4 Exhibit A r- e FACILITY 57 Herifage Rd (CY- i 04) Olympic Pkwy to Main St New 6 Lane Prime Arterial i.ength (I_t): 9,ass 2 Special Items Habitat mitigation TOTAL HARD COSTS $ 1,000,000 $ 15,100,000 1,D00;000 (Source - Hunsaker & Associafes) SOFT COSTS Contingency (15%) Design (12%) Inspection/Administration (6%) Developer Administration (1.75%) City Project Administration (2%) TOTAL SOFT COSTS PROJECT COST $ 2,265,000 $ 1,812,000 $ 908,000 $ 264,250 $ 302,000 $ 5,549,250 $ 20,649,250 8-5 CHULA VISTA TDIF FACILITY EXHIBIT FACILITY N0. 57 PROJECT DESCRIPTION: HERITAGE ROAD FROM OLYMPIC PARKWAY TO MAIN STREET/ROCK MOUNTAIN RD. CY-104 CONSTRUCT 6 LANE PRIME ARTERIAL ROAD (LENGTH = 9, 438 °r ~-z-~~ HERITAGE ~A~ R~QO ~ C'~ J ' O ~~ ~ ~ OTAY ~ ` LAND FILL y e »R~ e 8-6 6-LANE PRIME NO SCACE Exhibit B ..:/~ -~ ~ALDWIN $ SQ1vS Building QuIIicp Commonirics for Thmc Gemuuooa March 4, 2013 Chester Bautista Development Services Department City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Subject: Heritage Road North Construction and Reimbursement Dear Chester: Please allow this letter to serve as our formal request for Baldwin & Sons to construct that portion of Heritage Road between Olympic Parkway and Santa Victoria Road. As agreed to, we will be constructing two lanes of the ultimate six lane design. In accordance with the City's policies regarding TDIF facilities, we will be seeking reimbursement for this work in the form of TDIF credits that can be used to offset the TDIF fee obligations of our homebuilders. If you have any questions or need any additional information, please do not hesitate to contact me. Sincerely, L.'- ~~~ BALDWIN & SONS Stephen M. Haase, AICP Senior Vice President 8-7 610 W. Ash S[tect, Sui[e 1500 San Diego, CA 92101 ~ 619-234-4050 EXIHBIT C Heritage Road -Olympic Parkway to Santa ViMOria Road Pbase 1 - 2 Lane Roadway Improvements Cost Estimate Scone Description uami Units Unit Price Extension Surface Improvements Cleaz, Grub, Rough Grade 387,500 SF $ 0.10 $ 38,750.00 Scarify, recompact, balance to +/- 0.1' 112,000 SF $ 0.15 $ 16,800.00 Curb & Gutter Subgrade 3,684 LF $ 1.50 $ 5,526.00 G-2 Curb & Gutter 1,947 LF $ 13.00 $ 25,311.00 Median Curb 1,737 LF $ 13.00 $ 22,581.00 AC Berm 1,315 LF $ 5.00 $ 6,575.00 Street Subgrade 107,057 SF $ 0.50 $ 53,528.50 24" CAB 107,057 SF $ 3.50 $ 374,699.50 1st Lift AC - 5 1/2" 107,057 SF $ 3.15 $ 337,229.55 1-1/2" AC Cap 107,057 SF $ 0.80 $ 85,645.60 10' DG Trail 21,500 SF $ 6.00 $ 129,000.00 Pedtamp 3 EA $ 350.00 $ 1,050.00 Sidewalk Subgrade 23,415 SF $ 0.15 $ 3,512.25 Temporary AC Sidewalk 1,915 SF $ 2.00 $ 3,830.00 Raise Manhole to Grade 9 EA $ 400.00 $ 3,600.00 Raise Water Valves to Grade 7 EA $ 250.00 $ 1,750.00 Traffic Signet Modification @ Olympic Pazkway 1 LS $ 30,000.00 $ 30,000.00 SDG&E (allowance for street lighting service only) 1 LS $ 20,000.00 $ .20,000.00 SVeet Light -double 7 EA $ 3,000.00 $ 21,000.00 Street Light- single 3 EA $ 2,000.00 $ 6,000.00 Street Light conduits and wiring 2,155 LF $ 6.00 $ 12,930.00 Yellow stripe w/reflectors 3,089 LF $ 0.60 $ 1,853.40 Shoulder/Lane stripe 4,809 LF $ 0.55 $ 2,644.95 Traffic control signs 29 EA $ 250.00 $ 7,250.00 Erosion control installation and maintenance 2 YR $ 35,000.00 $ 70,000.00 Subtotal Surface Improvements $ 1,281,066.75 Consultants & Fees - Dry UtiliTy Consultant 1 LS $ 9,000.00 $ 9,000.00 Civil Engineering (office) 1 LS $ 35,000.00 $ 35,000.00 Traffic Engineering (office) 1 LS $ 6,000.00 $ 6,000.00 Civil Engineering (field) 1 LS $ 33,650.00 $ 33,650.00 Geo[eclutical observation and testing 1 LS $ 53,528.50 $ 53,528.50 City plan check and inspection 1 LS $ 50,000.00 $ 50,000.00 Improvement bond 2 YR $ 18,166.00 $ 36,332.00 Subtotal Consultants & Fees $ 223,510.50 Storm Drain (portion eligible for TDIF funding) Stormwater filter system (33%portion TDIF eligible) 1 LS $ 108,000.00 $ 108,000.00 Consultants & Fees 1 LS $ 16,200.00 $ 16,200.00 Subtotal Storm Drain $ 124,200.00 Total Estimated Cost $ 1,628,777.25 Contingency 10% $ 162,877.73 TOTAL witb contingency $ 1,791,654.98 8-8 RESOLUTION NO. 2013- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDERS FOR OTAY PROJECT, L.P. FOR THE CONSTRUCTION OF HERITAGE ROAD WHEREAS, Otay Project L.P., the master developer for a portion of Otay Ranch Village 2, constructed certain facilities associated with the City's Transportation Development Impact Fee, namely a portion of Heritage Road from Olympic Parkway to Santa Victoria Road, and; WHEREAS, the portion of Heritage Road from Olympic Parkway to Santa Victoria Road is identified as Facility 57 in the Transportation Development Impact Fee (TDIF) program and is eligible for reimbursement; and WHEREAS, Otay Project L.P. requested a credit for the construction costs associated with their portion of the construction of Heritage Road to be applied against future Transportation Development Impact Fees (TDIF) for the project; and WHEREAS, an audit of the work completed by Otay Project, L.P. on Heritage Road from Olympic Parkway to Santa Victoria Road was performed to determine the amount of TDIF eligible costs of the construction. The audit concluded that the total of TDIF eligible costs was $2,680,152.56; and WHEREAS, since the date of the audit, a change order was submitted and additional work was performed in the amount of $132,315.83, resulting in a total audited reimbursement of $2,812,468.40; and WHEREAS, City staff has performed an audit to verify the construction costs of the project and further verified that a portion of Heritage Road has been completed in accordance with the approved plans; and WHEREAS, based on the audit, City staff has determined that the change order amount of $132,315.83, associated with the construction of a portion of Heritage Road, is eligible for TDIF credit. NOW, THEREFORE, BE 1T RESOLVED that the City Council of the City of Chula Vista approves the change orders for Otay Project, L.P. for the construction of a portion of Heritage Road, between Olympic Parkway to Santa Victoria Road, and the issuanc of TDIF credits therefore. L ~_..__--~ Presented by Gary Halbert, P.E., AICP ;,G1En R. Goo<g Assistant City Manager/Director of City Attorney Development Services 8-9 RESOLUTION NO. 2013- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING BALDWIN AND SONS, LLC TO CONSTRUCT HERITAGE ROAD AND RECEIVE CREDIT AGAINST DEVELOPMENT IMPACT FEES WHEREAS, the City of Chula Vista has, by ordinance, established the Transportation Development Impact Fee (TDIF) program; and WHEREAS, Heritage Road is identified as Project No. 57 in the City's Transportation Development Impact Fee (TDIF) program; and WHEREAS, the City has received a letter dated March 4, 2013 from Baldwin and Sons LLC, (Developer) requesting authorization to construct and receive reimbursement in the form of TDIF credits for the construction of Heritage Road; and WHEREAS, in order to obtain such credits, the developer must apply to the City and obtain approval from the City Council prior to construction of the facility. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby authorize Baldwin and Sons, LLC to construct Heritage Road Improvements and receive reimbursement in TDIF credit therefore. Presented by Gary Halbert, P.E., AICP Assistant City Manager/Director of Development Services 8-10