HomeMy WebLinkAbout2010/01/05 Item 4TY COUNCIL
STATEMENT
~~~ CITY OF
CHULA VISTA
1/OS/10, Item
ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE
DESIGN-BUILD AGREEMENT BETWEEN THE CITY OF CHULA
VISTA AND YOUNG ELECTRIC SIGN COMPANY (YESCO) FOR
THE DESIGN AND CONSTRUCTION THE CHULA VISTA
AUTO PARK SIGN (CIP NO. RD248)
SUBMITTED BY: DIIZECTOR OF PUBLIC WORKS
REVIEWED BY: CITY MANAGER ~
ASSISTANT CIT ANAGER ~j
4/STHS VOTE: YES ^ NO
SUMMARY
On March 6, 2009, a Request for Proposal (RFP) was issued for proposals from qualified
Design-Build Teams (DBT) to provide design services, engineering services, construction
management, and construction services/coordination for the Chula Vista Auto Park Sign project.
On May 26, 2009, City Council Resolution No. 2009-125 was adopted, approving the contract
with Young Electric Sign Company (YESCO) for the design and construction of the Chula Vista
Auto Park Sign. Now, the preliminary design phase for the sign is complete and Council is
being asked to adopt a Resolution setting the Guaranteed Maximum Price (GMP) for the
contract.
ENVIRONMENTAL REVIEW
The Planning and Environmental Review Coordinator has reviewed the proposed project for
compliance with the California Environmental Quality Act (CEQA) and has determined that as a
ministerial project, the approval of which is not subject to discretion, the project is exempt,
pursuant to Public Resources Code Section 21080(b)(1), from the provisions of CEQA.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
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1/OS/10, Item@
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DISCUSSION
BACKGROUND
In June of 2005, the Chula Vista Redevelopment Agency (Agency) and Sunroad CV Auto, Inc.
(Developer), entered into an Owner Participation Agreement ("OPA") for the development of the
Chula Vista Toyota auto dealership. The OPA includes an obligation for the Agency to
diligently pursue the construction of an Auto Park directional sign ("Sign") along Auto Park
Drive (Main Street) in the vicinity of the eastern boundary of Interstate 805 for the benefit of the
entire auto park (see Attachment 1). In April 2008, the OPA was amended, indicating that the
City, rather than the Agency, would build the sign.
On May, 26, 2009, City Council approved an agreement with YESCO by Resolution 2009-125
for the services required to design and construct a completed and fully functional Auto Park sign.
As part of that agreement, a Guaranteed Maximum Price (GMP) is to be established at 90%
construction documents, which would include, but not be limited to, the cost for all labor,
equipment, and material to design and build a fully functional park in accordance with all
applicable building codes. Anot-to-exceed amount of $1,070,542.00 for the project was
established based upon rough schematic drawings in the Design Build agreement. Tonight's
Resolution will amend the Guaranteed Maximum Price for the design and construction of an
Auto Park direction sign. Staff has completed the following steps for this project concerning the
Public Input Process:
• Request for Proposal (RFP) -March 6, 2009
- Call for proposals to design and build Auto Park Sign
- Bids due by March 20, 2009 (extended to April 8)
- Public Notice posted in newspaper
- RFP posted on City website
• Council Hearing (Award Contract) -May 26, 2009 @ 4pm
Location: Council Chambers
- Award Contract to Young Electric Sign Company (YESCO)
• Flag Test -July 24, 2009 @ 6:30am
Location: 4555 Otay Valley Road (Project Site)
- Determine height of proposed sign
- Public Notice to 500' radius
- No public attendees or comments received.
• Community Meeting -August 20, 2009 @ 6pm
Location: Public Works (1800 Maxwell Road)
- Discuss proposed Auto Park Sign
- Public Notice to 1,000' radius
- No public attendees or comments received.
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PERMITTING
Two permits will be required to build the proposed directional sign for the Chula Vista Auto
Park: an Outdoor Advertising (ODA) Display Permit and a Public Property Sign Permit. The
permit processes are described below.
Outdoor Advertising Display Permit: The proposed Auto Park Sign will be visible from a
portion of the 805 Freeway that is designated as a "Certified Landscape Area." According to
Section 5200, of the Business and Professions Code (the Outdoor Advertising Act), signs such as
the one being proposed are allowed (by permit) adjacent to the certified landscape area if they
are located within the limits of a redevelopment project area.' CalTrans reviewed the Auto Park
Sign concept2 and issued a Preliminary Determination of approval for the sign -the first step to a
sign permit. The actual Outdoor Advertising Display Permit will not be issued until after the
City's permit process (Public Property Sign Permit) is complete. At that time, CalTrans will
review the Auto Park Sign once more, issuing an Outdoor Advertising Display Permit and decal.
Public Property Sign Permit: The City of Chula Vista's Sign Policy (Council Policy 465-02)
regulates signs on property owned or controlled by the City. The Auto Park Sign will be sited on
property controlled by the City or Agency and will therefore be governed by the Sign Policy and
the Public Property Sign Permit process. In accordance with the Sign Policy, the Director of
Development Services will issue the Public Property Sign Permit.
It should be noted that an exclusive easement (with the current Shell Station ownership) will give
the Agency site control on a portion of the property, and anon-exclusive easement will allow the
Agency to access the site for construction, maintenance, and operation of the sign.
PROJECT SCOPE AND CONTRACTUAL REQUIREMENTS
As proposed, the services to be provided by YESCO are generally to be performed in three
phases: (1) Design Services, (2) Construction Services, and (3) Operations.
YESCO shall perform all services, work and obligations as described in the RFP for a
Guaranteed Maximum Price ("GMP") which is set at 90% construction documents and includes
all Design Services and all Hard Construction Costs necessary to provide a fully completed and
functional Chula Vista Auto Park Sign including, but not limited to: general conditions, the cost
for all labor, equipment, material and the YESCO Fixed Fee which includes fees and expenses of
any type associated completing the Chula Vista Auto Park Sign. Any cost incurred by the
YESCO in excess of said GMP shall be the sole responsibility of YESCO.
CHANGE ORDERS
Under the design/build process, change orders are handled differently than under the
design/bid/build process. Change orders are only returned for Council approval if they exceed
the approved GMP, or are for additional work requested by the City, which results in a
significant change to the original scope. Otherwise, change orders are reviewed/approved by
staff and the design builder. This practice is commonplace when using the design build
construction technique.
1 The advertising on these signs is limited to businesses in the redevelopment project area.
2 A design concept for the sign was developed several years ago, with input from the auto dealers. This
concept is subject to change through the permitting ~oc~ss.
1/OS/10, Item
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staff and the design builder. This practice is commonplace when using the design/build
construction technique.
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.
CURRENT FISCAL IMPACT
There is no impact to the General Fund as there are sufficient existing funds in the project
necessary for completion. A breakdown of project costs is as follows:
FUNDS REQUIRED FOR SIGN PROJECT
A. Design Build Contract Estimate Amount $1,009,110.00
B.City Contingency $25,000
C. Staff Time Estimate $60,000
D. Utilities $0
E. Special Inspections $14,599
TOTAL FUNDS REQUIRED FOR SIGN PROJECT $1,200,000
FUNDS AVAILABLE FOR SIGN PROJECT
Existing CIP (RD248) funded by 2008 Tax Allocation Bond funds $1,200,000
TOTAL FUNDS AVAILABLE FOR SIGN PROJECT $1,200,000
ONGOING FISCAL IMPACT
Upon completion, only routine maintenance and care of the sign will be required and associated
costs borne by the Auto Park Dealership Association.
ATTACHMENTS
Exhibit A. First Amendment
Prepm-ed by: Gordon Day, Building Project Manager, Pztblic Works-Engineering
M:\Engineer\AGENDA\CAS2010\OI-OS-10\CV Auto Park Sign CAS 120109rev.doc
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RESOLUTION 2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE FIRST AMENDMENT TO
THE DESIGN-BUILD AGREEMENT BETWEEN THE CITY OF
CHULA VISTA AND YOUNG ELECTRIC SIGN COMPANY
(YESCO) FOR THE DESIGN AND CONSTRUCTION OF THE
CHULA VISTA AUTO PARK SIGN (CIP NO. RD248)
WHEREAS, on May 26, 2009, City Council approved an agreement with YESCO by
Resolution 2009-125 for the services required to design and construct a completed and fully
functional Auto Park sign.
WHEREAS, as part of that agreement, a Guaranteed Maximum Price (GMP) is to be
established at 90% construction documents, which would include, but not be limited to, the cost
for all labor, equipment, and material to design and build a fully functional park in accordance
with all applicable building codes.
WHEREAS, anot-to-exceed amount of $1,070,542.00 for the project was established
based upon rough schematic drawings in the Design Build agreement.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby approve the First Amendment to the Design-Build Agreement between the
City of Chula Vista and Young Electric Sign Comp
of the Chula Vista Auto Park Sign (CIP No. RD248)
Presented by
Richard A. Hopkins
Director of Public Works
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THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED ~'ON APPRO AL. B-
THE CITY ,C.OL~NCIL
Bart . MYesfeld
Ci y Attorney
Dated: / Z ZZ ~~
FIRST AMENDMENT TO
THE DESIGN/BUILD AGREEMENT
BETWEEN THE CITY OF CHULA VISTA AND
YOUNG ELECTRIC SIGN COMPANY (YESCO)
FOR DESIGN AND CONSTRUCTION OF
CHULA VISTA AUTO PARK SIGN
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First Amendment to
the DesignBuild Agreement between the City of Chula Vista
and Young Electric Sign Company (YESCO)
For Design and Construction of Chula Vista Auto Park Sign
This First Amendment is made and entered into this 8th day of ,December 2009 by and
between the City of Chula Vista ("City"), a municipal corporation, and Young Electric
Sign Company (YESCO) ("Design Builder or DB"). City and Design Builder are
sometimes referred to as Parties ("Parties")
RECITALS
WHEREAS, the City and D/B entered into an agreement ("Original Agreement") dated
May 26, 2009 and approved by City Council Resolution 2009-125, whereby D/B agreed
to provide design and construction services to the City for the construction of a fully
functional sign, Chula Vista Auto Park Sign ("Project"), including the facilities and site-
work; and
WHEREAS, pursuant to the Original Agreement, the guaranteed maximum price
("GMP") was not to exceed $798,487; and
WHEREAS, after design of the Project, the actual GMP, as determined at the 90%
construction drawing stage, will not exceed $1,070,542.00; and
WHEREAS, DB and City staff have value-engineered the Project to provide .the best
product at the most effective price; and
WHEREAS the Parties desire to amend the Original Agreement to increase the GMP to
$1,070,542.00 for a fully functional Chula Vista Auto Park Sign, various insurance
provisions, and the fee structure.
NOW, THEREFORE, in consideration of the Recitals and the mutual obligations of the
Parties as set forth iri this First Amendment, the City and Design Builder agree as
follows:
AGREEMENT
1. Section 1: General Scope of Work to be Performed by D/B, subsection 1.3.1, in the
sixth line of the paragraph, delete "$30,421" is unchanged.
2. Section 1: General Scope of Work to be Performed by D/B, subsection 1.3.2, delete
"but no later than May 31, 2010", remains unchanged.
3. Section 11: Insurance, subsection 11.3.1.5, Builder's Risk Property Insurance, in the
ninth line of the paragraph, delete "$235,163.00" and replace with "$440,137.00".
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4. Section 11: Insurance, subsection 11.3.1.5, Builder's Risk Property Insurance, in the
third paragraph in this subsection, "$10.000". Remains unchanged.
5. Section 1 l: Insurance, subsection i 1.4.1.5, delete "~493,852.OU'~ and replace `vilh
~~$714.073.ao°'.
6. Section 13: D/B GMP for Services and Reimbursements, subsection 13.1.1, in the first
line of the paragraph, delete "$798,487" and replace with "$1,070,542.00".
7: Section 13: DB GMP for Services and Reitnbttrsements, subsection 13.1.1, in the
second line of the paragraph, "$30,421" remains unchanged.
8. Section 13: D/B GMP for Services and Reimbursements, subsection I3.2, in the fifth
line of the paragraph, "$30,421" remains unchanged.
9. Section 13: D/B GMP for Services and Reimbursements, subsection 13.2, in the fifth
line of the paragraph, "$30,421" remains unchanged.
- ... - -
10:: $xhtbit 2:. Design_Bui1dFee°-Structure, delete Exhibit 2, Design.Biuld Fee Structtiie,
ta, the Original Agreerrient and 'replace: with fhe attached Revised;Exhibit 2, Desi~ri Btiild
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Fee Stiticture.
All other ternis of the Original Agreement shall remain in full force and effect.
[END OF PAGE. THE NEXT PAGE TS THE SIGNATURE PAGE]
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__ ~ _
Signature Page to
First Amendment to
the DesignlBuild Agreement bet•veen the City of Chula Vista
and Young Electric Sign Company (YESCO)
For Design and Construction of Chula Vista Auto Park Sign
City of Chula Vista
By:
Cheryl Cox
Mayor
Date:
ATTEST:
Donna Norris, CMC
City Clerk
Approved as to form:
Bart Miesfeld
City Attorney
Young Electric Sign Company (YESCO)
By:
Name: H
Title: l/~-,O !//,Sidy~~9,U,4rr~
1:~Enginccr\Fiscal & Admin ScrvicesWgenda 5tatcments & Rcsaiutions (Drafts)~Auro Park Sign first Amdmt &: Sig Pag~.doc
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