HomeMy WebLinkAboutReso 2019-172RESOLUTION NO. 2019-172
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA FINDING RIDA CHULA VISTA, LLC’S
PROPOSED SOLE SOURCE AWARD TO ITS GENERAL
CONTRACTOR TO CONSTRUCT BAYFRONT
DEVELOPMENT IMPACT FEE TRANSPORTATION
FACILITIES TO BE IN THE BEST INTEREST OF THE PUBLIC,
PURSUANT TO CHULA VISTA MUNICIPAL CODE
SUBSECTION 2.56.160(H), “DEVELOPER-PERFORMED
PUBLIC WORKS,” AND DELEGATING TO THE CITY
MANAGER AUTHORITY TO ASSURE COMPLIANCE WITH
APPLICABLE PROCUREMENT REQUIREMENTS FOR
SUBCONTRACTORS
WHEREAS, the City of Chula Vista, RIDA Chula Vista, LLC (“Developer”), and the San
Diego Unified Port District (“District”) entered into a Disposition and Development Agreement
for the Resort Hotel Convention Center Project (Chula Vista Bayfront Master Plan Parcel H-3)
(the “Project”), effective May 7, 2018 (the “DDA”); and
WHEREAS, pursuant to the DDA, in addition to a resort hotel, consisting of no less than
1,570 rooms and no more than 1,600 rooms (the “Hotel”) and related resort-level amenities as
more fully described in the Scope of Development attached to the DDA (collectively, the
“Developer’s Private Improvements”) the Developer shall construct a portion of the substantial
public improvements required for development of the Chula Vista Bayfront Master Plan Area (the
“Developer’s Phase1A Infrastructure Improvements”); and
WHEREAS, the Scope of Development attached to the DDA provides that the Developer
shall construct certain Bayfront Development Impact Fee (BFDIF) transportation and pedestrian
improvements included in the Developer’s Phase 1A Infrastructure Improvements, consisting of:
E Street (from G Street to H Street), the G Street Connection, H Street (from Bay Boulevard to
Street A), H Street (from Marina Parkway to E Street), and the initial p hase of Harbor Park
(collectively, the “Developer’s BFDIF Improvements”); and
WHEREAS, Chula Vista Municipal Code (CVMC) Chapter 3.54 establishes a series of
transportation development impact fee programs, including the BFDIF; and
WHEREAS, pursuant to CVMC Section 3.54.140, developers of development projects that
are required, or that propose, to construct BFDIF transportation facilities are eligible for credit
against their BFDIF fee obligation; and
WHEREAS, pursuant to CVMC Section 3.54.150(A), a developer constructing BFDIF
transportation facilities shall comply with the procedures set forth in CVMC 2.56.160(H), except
that City Council approval to proceed shall not be required for developer -constructed
transportation facilities to be constructed for fee credit; and
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WHEREAS, CVMC Section 2.56.160(H)(1)(b) provides that a developer may award a
contract for a developer-performed public work on a sole source basis where, in addition to
compliance with all applicable requirements of CVMC Section 2.56.160(H), the City makes
findings that an award of a sole source contract is in the best interest of the public because of the
particular (A) performance capabilities of the proposed entity or contractor, (B) project
characteristics, (C) manufacturing processes, (D) compatibility requirements, and/or (E) market or
other conditions/circumstances that render the award of a sole source contract to be in the best
interest of the public and the entity or contractor awarded a sole source contract for a developer-
performed public work competitively bids all subcontracts for the developer-performed public
work; and
WHEREAS, Developer intends to combine into one bid solicitation the construction of the
Developer’s Phase 1A Infrastructure Improvements, including the Developer’s BFDIF
Improvements (the “Phase 1A Project”); and
WHEREAS, Developer has selected MMJV, a joint venture comprised of M.A. Mortenson
Company (“Mortenson”) and McCarthy Building Companies, Inc. (“McCarthy”), (the “General
Contractor”) for construction of the Developer’s Private Improvements; and
WHEREAS, Developer has selected MMJV for the construction of the Developer’s Private
Improvements on the following basis: Mortenson is an industry leader with a wealth of experience
in similar large-scale projects, including the recent construction of the Gaylord Rockies Resort and
Convention Center project developed by a RIDA affiliate which makes it uniquely qualified to
develop the Developer’s Private Improvements, and McCarthy provides a strong local presence,
positive reputation, relationships with the local subcontractor community, and a resume of large -
scale development projects; and
WHEREAS, as authorized by CVMC Section 2.56.160(H)(1)(b), Developer is seeking
City acceptance of MMJV as the General Contractor for the Phase 1A Project improvements based
on their belief that hiring MMJV as General Contractor for both the Developer’s Private
Improvements and the Phase 1A Project will provide for a compatible, streamlined, and successful
approach that will result in time and cost efficiencies, and avoid logistical coordination issues that
would otherwise impede the overall schedule for the construction of the Developer’s Private
Improvements and the Phase 1A Project; and
WHEREAS, staff concurs that the MMJV is highly qualified to build all aspects of the
project and concurs with RIDA’s assessment that having one contractor build both the public and
private improvements will enhance project implementation quality and timelines. Accordingly,
staff recommends that the City Council find that the sole source award of the general contract to
MMJV is in the “best interests” of the public; and
WHEREAS, CVMC Section 2.56.160(H)(1)(b)(ii) requires the competitive bidding of all
subcontracts for developer-performed public works, if the prime contract is awarded on a sole
source basis; and
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WHEREAS, CVMC Section 2.56.160(H)(2)(c) requires the solicitation of sealed
competitive bids for subcontracts for developer-performed public works; and
WHEREAS, CVMC Section 2.56.160(H)(2)(d) states that “Developer shall award
contracts (except for contracts awarded pursuant to subsection (H)(1)(b) of this section), and shall
award, or shall cause the applicable entity or contractor to award, subcontracts for developer -
performed public work to the lowest responsive and responsible bidder, or the bidder that is
determined by developer to be the “best qualified contractor,” subject to City approval. When
determining the “best qualified contractor,” developer shall consider, without limitation, a bidder’s
demonstrated competence, qualifications, ability to achieve timely completion, capacity, skill,
compliance with bid documents, costs, and other relevant criteria; and
WHEREAS, Developer intends to award subcontracts for the Project to “best qualified
contractors” to ensure that the Project is constructed in a timely manner by subcontracting teams
that are best qualified to perform the work; and
WHEREAS, Developer has presented City staff with an outline of their process for
selecting the “best qualified” subcontractor based upon a variety of factors including: past relevant
/ similar project experience, customer feedback from those projects, current backlog, available
trades personnel resources, proposed supervisory / management personnel, financial capability,
design capabilities (for design-build subcontracts), schedule management plan, quality
management plan, and pricing; and
WHEREAS, the subcontractor selection process outlined by Developer does not include
the solicitation of sealed bids; and
WHEREAS, certain conditions and circumstances may arise in the subcontractor selection
process that require sole source subcontract awards; and
WHEREAS, staff is satisfied that Developer’s proposed process meets the intent of the
City’s competitive bidding requirements and will result in the selection of the “best qualified”
subcontractors consistent with City interests in high quality and timely construction per City
standards and the agreements between the parties under the DDA; and
WHEREAS, final subcontractor bids for the Project will not be received or awarded until
after the approval of this resolution; and
WHEREAS, as subcontracts for the Project have not yet been awarded, staff recommends
authorizing the City Manager, or designee, to make findings and to waive the competitive bid
requirement for subcontractors and to approve subcontract awards for the Project to “best
qualified” subcontractors; and
WHEREAS, CVMC Section 2.56.160(H)(1)(b) establishes the conditions and
circumstances under which a sole source contract may be approved, including: performance
capabilities of the proposed entity or contractor; project characteristics; manufacturing processes;
compatibility requirements; and market or other conditions/circumstances that render the award of
a sole source contract to be in the best interest of the public; and
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WHEREAS, staff recommends that the considerations prescribed in CVMC Section
2.56.160(H)(1)(b) be employed in any decision of the City Manager, or designee, to waive the
competitive bid requirement for subcontractors to allow for a sole source subcontract award; and
WHEREAS, CVMC Section 2.56.160(H)(2)(d) states that “[i]f a developer awards a prime
contract or subcontract to a bidder other than the lowest responsive and responsible bidder for an
item or unit of work, then all payments, reimbursements, and credits against developer impact fees
or other developer fees or obligations (“development credits”) shall not exceed the amount of the
lowest responsive bidder for that item or unit of work. This not-to-exceed limitation may be
waived where: (i) The amount of the bid does not exceed the engineer’s estimate or other approved
estimate for the developer-performed public work by more than 10 percent; and (ii) City approves
the waiver in accordance with subsection (H)(6) of this section.”; and
WHEREAS, CVMC Section 2.56.160(H)(6) provides that all or portions of the developer-
performed public work ordinance may be waived where “the waiver is in the best interest of the
public after consideration of factors including, without limitation, project costs, time for
completion, and other relevant criteria, and (ii) appropriate safeguards are in place to protect the
public interest”; and
WHEREAS, Developer may request a waiver of the not-to-exceed limitation pursuant to
2.56.160(H)(2)(d) prior to award of subcontracts; and
WHEREAS, appropriate safeguards are in place to protect the public interest, including the
previously described 10 percent not-to-exceed limit; and
WHEREAS, as subcontracts have not yet been awarded, staff recommends authorizing the
City Manager, or designee, to make findings and waive the not-to-exceed limitation in accordance
with CVMC Section 2.56.160(H)(2).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
as follows:
1. After consideration of factors in CVMC 2.56.160(H)(1)(b)(i) and the facts stated in
staff’s report on this item and the Recitals above, that the award of a sole source
contract to MMJV for Developer’s BFDIF Improvements is in the best interest of the
public.
2. After consideration of the facts stated in staff’s report on this item and the Recitals
above, the City Council finds that the waiver of the sealed bid requirement for
subcontractors is in the best interest of the public and appropriate safeguards are in
place to protect the public interest.
3. The City Council authorizes and directs the City Manager, or his/her designee, to
oversee and implement the subcontractor solicitation and award process provided in
CVMC 2.56.160(H), including, without limitation the following:
a. The authority, pursuant to CVMC Section 2.56.160(H)(6), after
consideration of factors for sole source contracts as provided in CMVC
Section 2.56.160(H)(1)(b), to make findings and approve the waiver of the
competitive bid requirements for subcontractors as provided in CVMC
2.56.160(H)(2)(b).
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b. The authority, pursuant to CMVC 2.56.160(H)(2)(d), to the City Manager,
or designee, to make findings and approve the award of subcontracts for the
Developer’s BFDIF Improvements to “best qualified contractors”.
c. The authority, pursuant to CVMC Section 2.56.160(H)(2)(d), to the City
Manager, or designee, to waive the not-to-exceed limitation for award of
subcontracts for the Developer’s BFDIF Improvements.
Where necessary or appropriate for purposes of implementing this action, the City
Council delegates its authority to the City Manager, or his/her designee, to waive
requirements and make findings as required by CVMC Section 2.56.160(H).
[SIGNATURES ON THE FOLLOWING PAGE]
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Presented by Approved as to form by
Kelly G. Broughton, FASLA Glen R. Googins
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 10th day of September 2019 by the following vote:
AYES: Councilmembers: Diaz, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2019-172 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 10th day of September 2019.
Executed this 10th day of September 2019.
Kerry K. Bigelow, MMC, City Clerk
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