HomeMy WebLinkAbout2009/04/07 Item 6
CITY COUNCIL
AGENDA STATEMENT
~\!f:. CITY OF
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4/7/09,Itelll~
ITEM TITLE:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VIST A APPROVING A CHAt'JGE ORDER FOR
BROOKFIELD SHEA OTAY, LLC FOR THE GRADING OF
EASTLAKE PARKWAY PHASE 3 AND HUNTE PARKWAY
PHASE 3.
DEPUTY I1PTY MAt"l"AGER/DEVELOPl\IIENT SERVICES
DIRECTO~~r
CITY MAt'JAGER qpf}--
I 4/5THS VOTE: YES 0 NO cg]
SUBlVIITTED BY:
REVIEWED BY:
SlJlV!MARY
Brookfield Shea Otay, LLC (BSO) has constructed Eastlake Parkway Phase 3 and Hunte Parkway
Phase 3 in conjunction with the development of Otay Ranch Village 11 (Winding Walk). These
roadways are within the Transportation Development Impact Fee (TDIF) program and, therefore,
eligible construction costs are credited against the payment of TDIF fees for the development. The
Phase 3 segments of the two roadways were constructed using the same unit prices as the Phase 2
segments and are therefore considered a construction change order. Change orders above $50,000
are subject to Council approval.
ENVIRONMENTAL 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 defmed under Section l5378(b)(4) of the State CEQA Guidelines, because this action
involves a governmental fiscal activity utilizing previously authorized funds, which will not result
in a potentially significant physical impact on the environment; 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 approves the Resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The grading of Eastlake Parkway Phase 3 arid Hunte Parkway Phase 3 occurred in June of 2005, in
conjunction \vith the grading for the last phase of Otay Ranch Village 11. Both roadways are
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4/7/09, Item~
Page 2 of3
identified as improvements within the City's Transportation Development impact Fee ("TDIF")
program as Facilities # 46 and #48. (See attachments 2 and 3). The TDIF program is the method
used to spread the cost of constructing new circulation element roadways over the developments
that benefit from them. Developers either pay the fee or build new roadways in a like amount. The
City benefits by having usable full width roads constructed instead of the traditional half-width
constructed streets that can occur while waiting for the developer across the street to develop. The
larger benefit is that the unit costs associated with grading the circulation element roads at the same
time as the surrounding development are significantly lower.
Grading Construction Changes for Phase 3 Eastlake Parkway and Hunte Park
The unit price for the earthwork associated with these two facilities was $0.88 per cubic yard for
both earthwork and alluvium removal (see Exhibit A). The volume of earthwork eligible for TDIF
facilities is that volume of earthwork within the City right-of-way on the developer's side of the
road and a 2:1 slope extending from the edge of the full width roadway to natural ground on the
other side of the road. In addition, remedial grading is performed to remove or rework unsuitable
materials under the proposed fills. In this case there was a net export condition after constructing
the two roadways. The net export was used by the developer on site so the price of export was split
50/50.
The earthwork costs for Phase 3 Eastlake Parkway and Hunte Parkway were $301,132.04 and
$473,854.04 respectively, totaling $774,986.08 (see Exhibit A).
The overall costs of Eastlake Parkway (Facility # 46) and Hunt Parkway (Facility #48)
This completes the audit for these segments of Eastlake Parkway and Hunte Parkway. Overall the
total costs for each facility were significantly below the TDIF cost estimate as shown in Table 1
below. The lower actual costs were due to some of the estimated cost never materializing such as
habitat mitigation: $973,000 for Eastlake Parkway and $1,757,000 for Hunte Parkway. The
developer gained the environmental clearances for the roads in conjunction with the overall project.
The low unit price for gradmg also significantly lowered the actual cost of the roadways.
Actual Cost Cost Estimate % Change
Eastlake Parkway (Facility # 46)
Previously audited components $2,944,990.84
Grading Construction Change $301,132.04
Total $3,246,122.88 $8,728,976.00 - 62.8%
Hunte Parkway (Facility # 48)
Previously audited components $10,614,291.88
Grading Construction Change $473,854.04
Total $11,088,145.92 $16,359,525.00 - 32%
Table 1. Comparison of budget to Actuals
Once approved, eligible TDIF costs are deposited as credits in favor of the developer. These credits
can be used in lieu of paying TDIF fees at the issuance of building permit. Approval of tonight's
action will result in the deposit of$774,986.08 credits in favor of Brookfield Shea Otay, LLC. Staff
recommends approval of the change orders.
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Page 3 of 3
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings
within 500 feet ofthe boundaries of the property, which is the subject of this action.
FISCAL IMPACT
There will be no direct fiscal impact to the City. Costs associated with the processing of this item
will be borne by the developer.
ATTACHMENTS
Attachment 1. Location Map of Eastlake Parkway Phase 3 and Hunte Parkway Phase 3
Attachment 2. TDIF Estimate for Eastlake Parkway Phase 3 (Facility 46)
Attachment 3. TDIF Estimate for Hunte Parkway Phase 3 (Facility 48)
Exhibit A. Cost breakdown for the construction change associated with the grading of Phases 3
of Eastlake Parkway and Hunte Parkway
Prepared by: Chester Bautista, Associaie Civil Engineer, Engineering Dept.
]:\EngineerIAGENDA\CAS2009\04-07-09\Grading for Phase 3 Hunte Parkway and Eastlake Parkway TDIF Reimbursement.doc
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FACILITY 46
Eastfake Pk'v'lY
Birch Rdto Hunte/Rock Mountain Rd
New 6 Lane Prime Arteria!
Length (Lf): 4,714
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i::arthwork Linear it 250.00 1,178,500
Drainage Items Linear it 130.00 612,820
Surface Improvements Linear it 425.00 2,003,.450
Dry Utilities Linear it 60.00 282,840
5 Landscape & Irrigation Linear it 250.00 1,178,500
6 Misc. Construction Logistics Linear It 10.00 47;140
7 Special Items 973,000
Habitat mitigation Acres 13.9 $70,000 :5 973,000
TO TAL HARD COSTS $ 6,276,250.
SOFT COSTS
Contingency (15% 01 total hard costs including right-ai-way)
Civil Engineering (7.5% 01 hard costs, excludes right-ai-way)
Soils Engineering (15% 01 earthwork costs)
Landscape Architecture (10% 01 landscaping costs)
SUNeying (2% of had costs, excludes right-ai-way)
Utility Engineering/Coordination (3% of dry utilities costs)
Inspection/Administration (6% of total hard costs including. right-of-way)
Developer Administration (1.75% 01 total hard costs including right-ai-way)
City Project Administration (2% of total hard costs including right-ai-way)
$ 941,438
:5 470,71 9
S 176,775
$ 117,850
:5 125,525
$ 8,485
:5 376,575
:5 109,834
:5 125,525
S 2,452,726
$ 8,728,976
TOTAL SOFT COSTS
TOTAL PROJECT COST
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Hunta Pkw1J
Olympic Pkwy to Eastlaka Pf<v1j1J
New 6 Lane Prime Arterial
FACILITY 48
Length (LI): 8,380
tin;:;, [lilt.:. n
1 Earthwork Linear ft. 8380 250.00 2,095,000
2 Drainage items Linearft 8380 130.00 1,089,400
3 Surface Improvements Linear tt 8380 42S.00 3,S61,SOO
4 Dry Utilities Linear ft 8380 60.00 S02,800
5 Landscape & Irrigation Linear ft 8380 250.00 2,095,000
6 Misc. Construction Logistics Linear ft 8380 $ 10.00 83,800
7 Pipeline Encasement Lump Sum $ 600,000.00 600,000
8 Special Items 1,757,000
Habitat mitigation. .~cres 2S.1 $70,000 S 1,757,000
TOTAL HAF1D COSTS $ 11,784,500
SOFT COSTS
Contingency (15% of total hard costs including right-of-way)
Civil Engineering (7.S% of hard costs, excludes right-ai-way)
Soils Engineering (15% of earthwork costs)
Landscape Architecture (10% of landscaping casts)
Surveying (2% 01 hard casts, excludes right-of-way)
Utility Engineering/Coordination (3% 01 dry utilities costs)
Inspection/Administration (6% of total hard casts including right-ai-way)
Developer Administration (1.75% of total hard casts including right-of-way)
City Project Administration (2% of total hard costs including right-of-way)
:5 1,767,675
$ 883,838
$ 314,250
S 209,500
$ 235,690
S 15,084
$ 707,070
$ 206,229
$ 235,690
S 4,575,025
$ 16,359,525
TOTAL S.OFT COSTS
PROJECT COST
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Exhibit "A"
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ost )rea (( own .01' 'e Igl e grac Ing or lay anc -I 1 age lase - L1nrc ant :'.as a e at ways
Cubic Yards of Earthwork Eligiblt
Dtscri ()lion Eastlakc Parkway Huntt Parkway Both Ibods $/Unit Unit Anlount
Cut (CY)
RW-RW 306,816 28S,371
Rw-DaylighL 109,469 131,637
Total CUL 416,285 417,008 833,293
Fill (CY)
RW-RW 1l5,610 279,615
Rw-DaylighL 81,448 216,316
TOlalFill 197,058 495,931 692,989
Nel Export 1'10,304 0.44 CY 61,734
TOlal CUl 833,293
(less ponion of cut [hat was exported at a lower rate) (140,304\
Total digibile Cut 692,989 0.88 CY 609,830
Alluvium RtmovaJ 35,524 82,001 117 ,525 0.88 CY 103,422
Grand Toral 774,986
RESOLUTION NO. 2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A CHANGE ORDER FOR
BROOKFIELD SHEA OTAY, LlC FOR THE GRADING OF
EASTLAKE PARKWAY PHASE 3 A.ND HUNTE PARKWAY
PHASE 3.
WHEREAS, in June 2005 Brookfield Shea Otay, LLC, the master developer for Otay Ranch
Village 11, or "Windingwalk" constructed certain facilities associated with the City's
Transportation Development Impact Fee, namely Hunte Parkway and Eastlake Parkway, and;
WHEREAS, the Phase 3 segments of Hunte Parkway (OR626I) and Eastlake Parkway
(OR625I) were graded using the Phase 2 bids of said facilities; and
WHEREAS, Brookfield Shea Otay has completed construction of these phases of Eastlake
Parkway and Hunte Parkway, and;
WHEREAS, Brookfield Shea Otay, llC has requested a credit for the grading costs
associated with phase three of the construction of Eastlake Parkway and Hunte Parkway to be
applied against future Transportation Development Impact Fees (TDIF) for the project; and
WHEREAS, City staff has performed an audit to verify the grading cost of the proj ect and
further verified that Eastlake Parkway and Hunte Parkway have been completed in accordance with
the approved plans; and
WHEREAS, based on the audit, City staff has determined that the following amounts
associated with the grading of Phase three of Hunte and Eastlake Park.-way are eligible TDIF costs:
Eastlake Parkway/Hunte Parkway
Eastlake Parkway TDIF Credit $301,132.Q4
Hunte Parkway TDIF Credit $473.854.04
Total TDIF credit $774,986.08
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista
approves the change order for Brookfield Shea Otay LLC for the grading of Eastlake Parkway and
Hunte Parkway phase three and Hunte Parkway Phase 3.
Gary Halbert
Deputy City Manager
Presented by
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