HomeMy WebLinkAboutReso 2022-274 DocuSign Envelope ID:9316BD9B-3E11-4F37-AD1B-A82C23475584
RESOLUTION NO. 2022-274
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A PROJECT DEVELOPMENT
AGREEMENT BETWEEN THE CITY AND LMC-MILLENIA
INVESTMENT COMPANY, L.P. FOR THE CONSTRUCTION
OF THE CINEMATIC ARTS ACADEMIC CENTER AND
LIBRARY BUILDING
WHEREAS, on December 6, 2022, the City Council of the City of Chula Vista ("City")
approved a purchase and sale agreement("PSA") between the City and LMC-Millenia Investment
Company,L.P. ("Developer")for the acquisition of an approximately 7.06-acre lot located directly
east of Millenia Avenue, West of Montage Avenue and immediately south of Fire Station 10,
commonly known as Lot 7 (the "Land"); and
WHEREAS, Developer has caused the preparation of certain building plans and
specifications for the development of a multi-stoiy Class A office building on the Land along with
related improvements(collectively, the"Project"),and has obtained building permits from the City
for development of the Project; and
WHEREAS, Developer has experience developing multi-story Class A office projects like
the Project and has identified four experienced prime contractors that have expressed interest in
submitting competitive bids to develop and construct the Project; and
WHEREAS, City desires to engage Developer to develop and construct the Project in
conjunction with City's acquisition of the Land from Developer under the terms of the PSA and
the Project Development Agreement that is the subject of this resolution; and
WHEREAS, under the terms of the PSA and Project Development Agreement, the
Developer will deliver to the City a"Turn Key"project consisting of a 168,000 square foot Class
A office building and related improvements, 60,000 square feet of which will be for a new library
with inclusive and intergenerational spaces, and subject to the terms of a pending agreement
between City and San Diego State University (SDSU), 50,000 square feet will be built and
programmed for a cinematic arts educational center supporting television and film production, a
separate approximately 6,000 square foot amenity building, site work, and associated parking on
Lot 7 ("Project Improvements"); and
WHEREAS, the Project Development Agreement provides the terms and conditions for
the scope of the development and construction of the Project Improvements, the construction
schedule, the procurement requirements for the prime contractor and subcontractors, the design
and construction standards, warranties, Developer's insurance requirements, and Developer's
obligations to indemnify and defend the City; and
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Resolution No. 2022-274
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WHEREAS, Chula Vista Municipal Code (CVMC) Section 2.56.160(H) (Developer-
Performed Public Works) regulates the procurement of developer-performed public works within
the City; 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 factor 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, CVMC section 2.56.160(H)(5) provides that City Council's approval of an
agreement that clarifies and establishes procedures for a developer-performed public work
constitutes the City Council's determination and findings that such procedures satisfy all
applicable requirements of CVMC section 2.56.160; and
WHEREAS, CVMC section 2.56.160(H)(5) provides that, in City's sole discretion, City
may require a developer to enter into an agreement prior to commencement of a developer-
performed public work to implement the developer-performed public work in accordance with the
terms of CVMC section 2.56.160(H) or in accordance with other obligations or restrictions
applicable to the developer-performed public work,and such agreement may: (a) clarify or modify
the application of or waiver of requirements of CVMC section 2.56.160(H) and/or (b) clarify,
establish, or modify the procedures to be undertaken by developer for a developer-performed
public work; and
WHEREAS, CVMC Section 2.56.160(H)(1)(a) provides that a Developer may award a
contract for a developer-performed public work by competitive bid or solicitation in compliance
with all applicable requirements of CVMC Section 2.56.160; and
WHEREAS, Developer has requested the option to award the prime contract and
subcontracts for the Project to "best-qualified contractors" to ensure that the Project is constructed
in a timely manner by contactor teams that are best qualified to perform the work; and
WHEREAS, as provided in Exhibit G of the Project Development Agreement, Developer
intends to solicit competitive bids for the prime contract from its pre-qualified shortlist after
consideration of, without limitation, each bidder's demonstrated competence, qualifications,
ability to achieve a timely completion, capacity, skill, compliance with bid documents, costs, and
other relevant criteria; and
WHEREAS,Developer has represented to City staff that soliciting a prime contractor from
its pre-qualified shortlist will provide for a streamlined and successful approach that will result in
time and cost efficiencies, and avoid logistical coordination issues that would otherwise hinder
and impede the overall schedule for the construction of the Project Improvements; and
WHEREAS, staff is satisfied with the Developer's assessment that the Developer's
proposed solicitation process to select a prime contractor from its pre-qualified shortlist of highly
experienced and qualified contractors to develop and construct the Project Improvements will
enhance the implementation,quality, and timeliness of the delivery of the Project Improvements; and
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WHEREAS, in accordance with CVMC Section 2.56.160(H)(2)(c), Developer has agreed
to solicit competitive bids for all subcontracts for the Project Improvements; and
WHEREAS, in accordance with CVMC Section 2.56.160(H)(2)(d),Developer has agreed
to award all subcontracts to the lowest responsive and responsible bidder or the bidder that is
determined to be the "best-qualified contractor," subject to City approval, after evaluating,without
limitation, each bidder's demonstrated competence, qualifications, ability to achieve a timely
completion, capacity, skill, compliance with bid documents, costs, and other relevant criteria; and
WHEREAS, as shown on Exhibit G of the PDA, Developer has presented City staff with
an outline of its process for selecting"best qualified" subcontractors 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, 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, staff is satisfied that Developer's proposed subcontractor solicitation process
meets the intent of the City's competitive bidding requirements and will result in the selection of
the lowest responsive and responsible subcontractors or "best qualified" subcontractors consistent
with City's interests in high-quality and timely construction per City requirements and the terms
and conditions of the PSA and PDA; and
WHEREAS, final prime contractor and subcontractor bids for the Project Improvements
will not be solicited or awarded until after the approval of this resolution; and
WHEREAS, as the prime contract and subcontracts for the Project Improvements have not
been solicited or awarded, staff recommends authorizing the City Manager, or designee, to make
findings and to waive the competitive bid requirements for the solicitation and award of the prime
contract and subcontracts if such waivers are appropriate and meet the waiver requirements per
the CVMC; and
WHEREAS, as the prime contract and subcontracts for the Project Improvements have not
yet been awarded, staff recommends authorizing the City Manager, or designee, to approve the
prime contract award and subcontract awards for the Project; and
WHEREAS, as the prime contract and subcontracts for the Project Improvements have not
yet been awarded, staff recommends authorizing the City Manager, or designee, to make findings
and approve the award of the prime contract and subcontracts for the Project to "best-qualified
contractors" in accordance with CVMC Section 2.56.160(H)(2)(d), and to make findings and
waive those requirements if such waivers are appropriate and meet the waiver requirements per
the CVMC; and
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WHEREAS, CVMC Section 2.56. 1 60(H)(2)(d) states that "if 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, Developer may request a waiver of the not-to-exceed limitation pursuant to
2.56. 1 60(H)(2)(d)prior to award of the prime contract or subcontracts; and
WHEREAS, as the prime contract and subcontracts have not yet been awarded, staff
recommends authorizing the City Manager, or designee, to make findings and waive the not-to-
exceed limitation found in CVMC Section 2.56.160(H)(2)(D) if such waivers are appropriate and
meet the waiver requirements per the CVMC.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
as follows:
1. The City Council approves the Project Development Agreement between the City and
LMC-Millenia investment Company, L.P. to, in the form presented, with such
modifications as may be required or approved by the City Attorney, authorizes and
directs the Mayor or designee to execute same, and directs a copy of the executed
agreement to be kept on file in the Office of the City Clerk.
2. The City Council delegates authority to the City Manager, or designee, to oversee and
implement the prime contractor and subcontractor solicitation and award processes for
the Project, including without limitation the following:
a. Per CVMC Section 2.56.160(H)(2)(c), the authority to make determinations
regarding competitive bid requirements for the prime contract and subcontracts
for the Project.
b. Pursuant to CMVC Section 2.56.160(H)(6), the authority to make findings and
approve waivers of the competitive bid requirements for the prime contract and
subcontracts for the Project if such waivers meet CVMC requirements.
c. Pursuant to CVMC Section 2.56.160(H)(2)(d), the authority to make findings
and approve the award of the prime contract and subcontracts for the Project,
including awards to "best-qualified contractors".
d. Pursuant to CMVC Section 2.56.160(H)(6), the authority to make findings and
approve waivers for an award of the prime contract and subcontracts for the
Project if such waivers meet CVMC requirements.
e. Pursuant to CVMC Section 2.56.160(H)(2)(d)(1-11),to make findings and waive
the not-to-exceed limitation for an award of the prime contract and subcontracts
for the Project if such waivers meet CVMC requirements.
3. Where necessary or appropriate for purposes of implementing this action, the City
Council delegates its authority to the City Manager,or designee,to waive requirements
and make findings as required by CVMC Section 2.56.160(H) in furtherance of the
development and construction of the Project improvements.
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Resolution No. 2022-274
Page No. 5
Presented by Approved as to form by
DocuSigned by: DocuSigned by:
EE
2FC559998BD74C4... CF406508504446F...
Eric C. Crockett Glen R. Googins
Deputy City Manager/Director of Economic City Attorney
Development
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 6th day of December 2022 by the following vote:
AYES: Councilmembers: Cardenas, Galvez, McCann, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
DocuSigned by:
0626FD7C0386456...
Mary Casillas Salas, Mayor
ATTEST:
DocuSigned by:
Lktr a P q I?r
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. 2022-274 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 6th day of December 2022.
Executed this 6th day of December 2022.
DocuSigned by:
3074D10 IEAF342E...
Kerry K. Bigelow, MMC, City Clerk