HomeMy WebLinkAbout2013/04/23 Item 06CITY COUNCIL
AGENDA STATEMENT
~~~ CITY OF
---- CHULAVISTA
Apri123, 2013
Item
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 AND GRANTING OTAY PROJECT, L.P.
DEVELOPMENT IMPACT FEE CREDITS FOR THE
OUTSTANDING BALANCE OF CONSTRUCTION COSTS..
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 ANAGE)~
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 Village 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
a reimbursement agreement for 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.
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Apri123, 2013
Item ~
Page 2 of 4
RECOMMENDATION
Council adopts the resolutions.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
Heritage Road Reimbursement to Otav Project, 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
market.
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 sofr
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 $132,315.84 (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 awazded 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.
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April 23, 2~ 3
Item
Page 3 of 4
Table 1.
Heritage Road Facility No. 57 Actual Cost
Previously audited components $2,680,152.56
Change Orders $132,315.84
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 Heritage 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
constriction 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:
1. 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
3. The City has approved the grading, improvement, and landscape plans for this project.
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Apri123, 2013
Item 6
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 $132,315.84
and the issuance of TDIF Credits in the amount of $527,468.40 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
6-4
Exhibit A
FACILITY 57
Herifage Rd (C y_ i p¢)
Olympic Pkwy to Main St
New 6 Lane Prime Arterial Length (Lf): s,43a
1 Construction Cost
2 Specialltems
Habftat mitigation
(Source - Hunsaker & Associates)
SOFT COSTS
Contingency (15%)
Design (12%)
Inspection/Administration (6%)
Developer Administration ( 1.75%)
City Project Administration (2%)
$ 1,000,000
$ 1,000000
TOTAL HARD COSTS $ 15,100,000
$ 2,265,000
$ 1,812,000
$ 906,000
$ 264,250
$ 302,000
TOTAL SOFT COSTS $ 5,549,250
PROJECT COST $ 20,649,250
6-5.
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
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HERITAGE
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LAND FILL y
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6_6
6-LANE PRIME
NO SCALE
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$AIDWIl~f & SoNs
Building Quality Communixies foa Shaec Gmeruiovs
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:
Exhibit B
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,
K--
BALDWIN & SONS
Stephen M. Haase, AICP
Senior Vice President
610 W. Ash Stteet, Suite 1500 ~ S~n7Diego, CA 92101 619-234-4050
EXIIIBIT C
Heritage Road -Olympic Parkway to Santa Victoria Road
Phase 1- 2 Lane Roadway Improvements Cost Estimate
Scooe Description
Surface Improvemeuts
Cleaz, Grub, Rough Grade
Scarify, recompact, balance to +/- 0, 1'
Curb &. Gutter Subgrade
G-2 Curb & Gutter
Median Curb
AC Berm
Street Subgmde
24" CAB
1st Lift AC-51/2"
1-I/2" AC Cap
10' DG Trail
Pedramp
Sidewalk Subgrade
Temporary AC Sidewalk
Raise Manhole to Grade
Raise Water Valves [o Grade
Traflic Signal Modification @ Olympic Pazkway
SDG&E (allowance for street lighting service only)
Street Light -double
Stteet Light -single
Street Light conduits and wiring
Yellow stripe w/reflectors
Shoulder/I.ane stripe
Traffic control signs
Erosion control installation and maintenance
Subtotal Surface Improvements
Consultants & Fees
Dry Utility Consultant
Civil Engineering (office)
Traffic Engineering (office)
Civil Engineering (field)
Geotechnical observation and testing
City plan check and inspection
Improvement bond
Subtotal Consultants & Fees
Storm Drain (portion eligible for TDIF funding)
Stormwater filter system (33% portion TDIF eligible)
Consultants & Fees
Subtotal Storm Draiu
Total Estimated Cost
Contingency
TOTAL with contingency
ti Units Unit Price Extension
387,500 SF $ 0.10 $ 38,750.00
112,000 SF $ 0.15 $ 16,800.00
3,684 LF $ 1.50 $ 5,526.00
1,947 LF $ 13.00 $ 25,31 t.00
1,737 LF $ 13.00 $ 22,581.00
1,315 LF $ 5.00 $ 6,575.00
107,057 SF $ 0.50 $ 53,528.50
107,057 SF $ 3.50 $ 374,699.50
107,057 SF $ 3.15 $ 337,229.55
107,057 SF $ 0.80 $ 85,645.60
21,500 SF $ 6.00 $ 129,000.00
3 EA $ 350.00 $ 1,050.00
23,415 SF $ 0.15 $ 3,512.25
1,915 SF $ 2.00 $ 3,830.00
9 EA $ 400.00 $ 3,600.00
7 EA $ 250.00 $ 1,750.00
t LS $ 30,000.00 $ 30,000.00
1 LS $ 20,000.00 $ 20,000.00
7 EA $ 3,000.00 $ 21,000.00
3 EA $ 2,000.00 $ 6,000.00
2,155 LF $ 6.00 $ 12,930.00
3,089 LF $ 0.60 $ 1,853.40
4,809 LF $ 0.55 $ 2,644.95
29 EA $ 250.00 $ 7,250.00
2 YR $ 35,000.00 $ 70,000.00
$ 1,281,066.75
1 LS $ 9,000.00 $ 9,000.00
1. LS $ 35,000.00 $ 35,000.00
1 LS $ 6,000.00 $ 6,000.00
I LS $ 33,650.00 $ 33,650.00
1 LS $ 53,528.50 $ 53,528.50
1 LS $ 50,000.00 $ 50,000.00
2 YR $ 18,166.00 $ 36,332.00
$ 223,S10S0
1 LS $ 108,000.00 $ 108,000.00
1 LS $ 16,200.00 $ 16,200.00
$ 124,200.00
$ 1,628,777.25
10% $ 162,877.73
$ 1,791,654.98
6-8
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 AND GRANTING OTAY PROJECT, L.P.
DEVELOPMENT IMPACT FEE CREDITS FOR THE
OUTSTANDING BALANCE OF CONSTRUCTION COSTS.
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, name]y 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 $132,315:84, resulting iri a total audited reimbursement of
$2,812,468.40; and
WHEREAS, City staff has performed an audit to verify the additional costs associated
with the change order and further verified that the 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 IT 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 issuance of TDIF
credits for the outstanding balance of construction costs in the amount of $527,468.40
6-9
Resolution No. 2009-
Page 2
Presented by Approved as to form by_.- j'
Gary Halbert, P.E., AICP /G~en R. Googins
Assistant City Manager/Director of Crty Attorney
Development Services
6-10
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 Approved as to forrrrby
l' ,
'%
Gary Halbert, P.E., AICP C'ilen R Goog
Assistant City Manager/Director of Ciky Attorney
Development Services
6-11