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Home My WebLink About2008/09/09 Item 4 CITY COUNCIL AGENDA STATEMENT ~\~ CITY OF ~..,. CHULA VISTA , U- 9/09/08, Item~ ITEM TITLE: RESOLUTION OF THE CITY COlTNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDERS ASSOCIATED WITH CFD 08-1 AND CFD 13-1 FOR THE OTAY RAt"lCH COMPANY FOR THE CONSTRUCTION OF LA MEDIA ROAD AND SANTA LUNA STREET SERVING OTAY RANCH VILLAGES 6 ANTI 7 ~ DIRECTOR OF ENGEINER G t!:J' CITY MANAGER ASSISTANT CITY M. AGER S I 4/STHS VOTE: YES 0 NO [g] SUBMITTED BY: , ./ REVIEWED BY: /' \ SUMMARY Otay Ranch has submitted a payment request for reimbursement from Community Facilities Districts (CFD) 081 and 131 bond proceeds for change orders related to the construction of La Media Road and Santa Luna Street serving Otay Ranch Villages 6 and 7. Change orders above $50,000 require Council approval. Tonight, Council will consider approving $167,274.23 in change orders for construction of La Media Road and Santa Luna Street. Approved change orders will be paid from CFD 081 and CFD 131 bond proceeds. ENVIRONMENT AL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378(b)(2) of the State CEQA Guidelines therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION On January 14,2003 the City Council formed CFD No. 08-1 for the purpose of providing for the financing and acquisition for certain authorized public facilities associated with Otay Ranch Village Six. On September 16, 2003, per Resolution No. 2003-409, the City Council approved 4-1 9/09/08, Item Y Page 2 of 2 the issuance of bonds and the AcquisitionlFinancing Agreement (AF A) that established the procedure for acquiring authorized public facilities from the Otay Ranch Company. Similarly, on October 25, 2005, the City Council formed CFD No. 13-1, and by Resolution No. 2006-107 approved the issuance of bonds and the AF A that established the procedure for acquiring authorized public facilities from the Otay Ranch Company. Under the approved AFAs, the developer requests reimbursement and submits invoices for eligible costs incurred during construction to the City for review. Approved costs are then paid from bond proceeds and the City acquires the facility. Therefore, the City's General Fund does not finance the construction of the eligible facilities. The AF A establishes the procedures for the reimbursement of change orders. Change Orders are costs not included in the original bid, but were necessary to complete the facility. Staff bring all change orders above a cumulative total of $50,000 to City Council for approval prior to authorizing reimbursement to the developer. On May 1, 2008, the Otay Ranch Company submitted a reimbursement request for the construction of La Media Road and Santa Luna Street landscaping improvements. La Media Road is defined as Improvement No.5 of CFD 08-1 and No.3 of CFD 13-1, and Santa Luna is defined as Improvement NO.6 of CFD 13-1 (Attachments 1 and 2). The request included erosion control costs, which need Council approval for the following reasons: . Cumulative costs exceed $50,000 . The erosion control contract was not publicly bid It was found that erosion control activities were approved'in previous audits done by our fonner auditing consultant. The City agreed to reimburse the eligible erosion control costs based on these findings and because erosion control is a necessary activity during construction to prevent sediment from entering the City's storm drain system before permanent landscaping is established, and to comply with Clean Water Act requirements. The eligible amount for payment of the erosion control totals $167,274.23. 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, which is the subject of this action. FISCAL IMPACT There is no impact to the City's General Fund. Payment of the eligible costs is paid through the CFD 08-[ and CFD 13-[ project funds. A TT ACHlVIENTS Attachment 1: List of Eligible Facilities for CFD 08-1 Attachment 2: List of Eligible Facilities for CFD 13-[ Prepared by: Tessa Quicho, Administrative Analyst If, Engineering Department Chester Bautista, Associate Engineer, Engineering Department 4-2 ATTACHMENT I ExECUTION COpy EXHIBIT '1A't ACQUISITION AND FINANCING AGREEMENT FOR CFD 08-1 (OTA Y RANCH VILLAGE SIX) IMPROVEMENT DESCRJPTION AND ESTl1VIA TED COSTS Improvement Number [mnrovernent Descrintion1 Cost EstimateZ I Traffic Enhancement-Te1eoranh Canyon Road(3) 3.000 000 2 La Media Road (Santa Venetia to Bircb Road) 2.614.063 3 La Media Road (Santa Venetia to Birch Road)Landscaninp 410.974 4 La Media RoadrBirch Road to Rock Mountain) 6.500.000 5 La Media Road{Birch Road to Rock Moumain'llandscanino- 500,000 6 Otav Lakes Road 3,100,000 7 Birch Road 2,067,721 8 Birch Road Landscaoin. 225156 9 Backbone Roads(Viewnark, Ma2dalena, Sutter Buttes and Santa Elisabeth) 5,138,613 10 Backbone Roads Landscaping (View Park, Magdalena, Sutter Buttes and Santa 525,236 Ellsabeth\ 11 01=nlc Parkwav 8,615.382 12 East Palomar Street 2,101,922 13 East Palomar Street Landscanin2 789.929 14 Santa Venetia Street 1,442,289 15 Santa Venetia Landscaoing: 432,256 16 Sound Walls on SR-125 684,808 17 Traffic Siilnal at La Media Road and Santa Venetia Street 106,170 18 Traffic Sional at La Media Road and Birch Road 130,000 19 Traffic SiPTlal at East Palomar Street and View Park Wav 129,005 20 Traffic Siilnal at East Palomar Street and Malldalena A venue 140,000 21 Pedestrian BridlJes 861.648 22 Facilities to be financed bv Public Facilities Develooment [moact Fee 6.333,582(4) 23 Develonment Slone LandscaninO' I 29' 396 Totals 47,142,150 Notes: Sources: Developer, McGill Martin Self, Inc. 11 the description of the [mprovements sct forth in this Exhibit "A" is preliminary and general. The final plans and specifications may show substitutes or modifications to the proposed improvements and proposed Improvements may be added or deleted with the consent of Developer and the City Engineer. Components of all roadway improvements eligible for funding shall include (i) grading, induding site preparation and mobilization. (ij) wet and dry utilities within the right.of~way, (iii) storm drain facilities. (iv) paving. (v) curb, gutter, sidewalk. medians. (vi) traffic signals (unless such traffic signals are designated as separate Improvements) (vii) lighting, (viii) landscaping (unless such landscaping is designated as a separate improvement) and (ix) all other appurtenant improvements. 2/ Cost estimates are preliminary and may be modified from time to time with the consent of Developer and the City Engineer. The Purchase Price of an Improvement shall be based on actual costs. 31 Cost estimate for the Telegraph Canyon Road Traffic Enhancement improvements constitutes the total cost of the facility. The actual amount reserved will be determined and may be adjusted as set forth in Section 8 of the Acquisition Financing Agreement. 41 A maximum of$858.960 shall be set aside and financed from the proceeds of the Bonds. A-I 4-3 Exhibit "A" ATTACHMENT ?J ''''~.'''''-~ Ac.qni~itinn :mrl FimmC"in'l &g;reement For CFD No 11-' (Ot:1V R:l.nl'h Vilh'lP "f'vpn\ Imorovement Descriotion and Estimated Costs Impr01lC.lUC'fl1 ImprO'o'cmcntDesc:riptioQI CoscESlimafeI ~. b 1 La Media Road TO!F) S4JlIJ,3JJ > La Media Road (Non.- TOIF) SI,I44)OJ 3 La Met:ia Road LandsC3ping(TDIFl S1J50.706 . Ma dalena Avenue (Non- TDIF) $1.6)5,210 S Santa Luna Street Non~ TDIF S1.100,O.5g . Santa Luna Street Landsca i Non. TOlf SJ26,4QJ 7 Flei5bein Street and Kincaid A...enufJ Sewer Non.TDIF 5507.955 8 Trail S ,tem/Storm Drain S stem 51,459,598 . 510 e Landsca in S2,JJ9,08Z 10 Traffic Si nals $]59,917 11 Those FaCllities 10 be financed 0" the Public Facilities Develocment 1m act FeePI $1.927,74Q TOTAL $16,934,906 = The dc:scriptign oflhc lmprovtmellts lc:\ rorm in this E>tiUbit "A' illlrelirniaaty and 1I1:<1l:J111. The finallllans llId ~ifl~tions may ,how SlJhstitul~ or ]/ moditic::uion. to the proposed ;ml'rovoemalU Irld I""opo.sed 1rnprovemcnu :'IIY bo.l<lcicd or de;eled wilh In.., CQn.c:n1 o{~opcr u><i lIle City Mllinecr. If<>Ot .peci6ed, COltlpooentS ofoUl street improvemems eligible fOf funding .nllll include (i) grading, (ii) We! ilnd il"f utilities wilhin the right-of-way, (iii) !Conn draiA fuciJjr,ie., (tv) p'';-Ilg. (v) curo, S\ltter, jidcwillk. mc:di.t.~., (vi) rn.ffil: lig."la1s, (vii) lighling,(viij) ~nd all other ~PllurtClU.ru: iQ1pC'OVcmenll 2/ ClIlt estimalCj lleprdimilllllY IIIId may be modiJicd from timclO lim<:wiLItthe CQr.sem o{!:lc-ffioper sJ'Id:!>e City Engiceet'. The Purdlue I"ricll o{an tmpl'OVelllmt shallbc:basedon,clu.d~o".. Smrll"~<' 0.-"",,,,,,,, Md-;il1 M,t'Ti,., "Mf ,"" C:\Documents and Set'jngs\jniklarz.JOHNO\Local Settings\Temporary Internet Fiies\OLKC 1\Exr;ibit A .::inal 9reakdow" (V4) 4-4 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDERS ASSOCIATED WITH CFD 081 AND CFD 131 FOR THE OTA Y RANCH COMPANY FOR THE CONSTRUCTION OF LA MEDIA ROAD AND SANTA UJNA STREET SERVING OTAY RANCH VILLAGES 6 AND 7 WHEREAS, on January 14,2003, the City Council formed Community Facilities District No. 081 CCFD 081") for the purpose of providing the financing and acquisition of certain authorized public facilities associated with Otay Ranch Village 6; and WHEREAS, on October 25, 2005, the City Council formed Community Facilities District No. 13! ("CFD 131") for the purpose of providing the financing and acquisition of certain authorized public facilities associated with Otay Ranch Village 2; and WHEREAS, the City entered into Acquisition/Financing Agreements (A FA) for both CFD 08! and CFD 131 with Brookfield Shea Otay, which authorized The Otay Ranch Company to construct La Media Road and Santa Luna Street, to be reimbursed from the project funds; and WHEREAS, The Otay Ranch Company has substantially completed construction of La Media Road and Santa Luna Street; and WHEREAS, erosion control measures were necessary during the construction of La Media Road and Santa Luna Street, thereby necessitating the approval of change orders to the contracts; and WHEREAS, the AF A establishes procedures for the reimbursement of change orders; and WHEREAS, City staff performed an audit of the project to verify the cost of the project and further verified that La Media Road and Santa Luna Street have been completed in accordance with the project plans; and WHEREAS, based on that audit, City stat I has determined that the following amounts are eligible for reimbursement from the CFD funds: La Media Road/Santa Luna Street La Media Road to be oald trom CFD OS! (TDlF sub account) $152,063.51 Santa Luna Street to be paid from CFD 13 I (Non- TDIF sub account) $15.210.72 Total $167.274.23 4-5 Resolution No. 2008- Page 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista approves change orders associated with CFD 081 and CFD 131 for The Otay Ranch Company for the construction of La Media Road and Santa Luna Street serving Otay Ranch Villages 6 and 7. Presented by Approved as to form by R.A. Hopkins Director of Engineering /~ " ~ ) .. fj$tUav/ 'rBart C1 Ie. - , f'ktefh City Anomey 4-6