DATE: April 11, 2023
SUBJECT:
Title
SWEETWATER PARK PROJECT, CHULA VISTA BAYFRONT:
A) (1) RESOLUTION (a) AUTHORIZING TRANSFER WITHIN THE DISTRICT’S FISCAL YEAR (FY) 2022-2023 BUDGET OF REMAINING UNSPENT FUNDS FOR SWEETWATER PARK PROJECT IN CAPITAL IMPROVEMENT PROGRAM APPROPRIATED ITEM TO THE SWEETWATER PARK PROJECT IN THE EQUIPMENT OUTLAY AND OTHER CAPITAL PROJECTS APPROPRIATED ITEM IN ACCORDANCE WITH BOARD OF PORT COMMISSIONERS (BPC) POLICY NO. 090; (b) APPROVING PLANS AND SPECIFICATIONS AND AWARDING CONTRACT NO. 2021-12, BASE BID, TO 3-D ENTERPRISES, INC. IN THE AMOUNT OF $12,543,730 FOR THE SWEETWATER PARK PROJECT, CHULA VISTA, CALIFORNIA; AND (2) ORDINANCE APPROVING AN AMENDMENT TO THE DISTRICT’S FY 2022-2023, BUDGET EQUIPMENT OUTLAY AND OTHER CAPITAL APPROPRIATION TO INCREASE THE SWEETWATER PARK BUDGET BY $13,499,708 USING FUNDS FROM THE CHULA VISTA BAYFRONT PHASE 1A INFRASTRUCTURE IMPROVEMENT BUDGET
B) CONDITIONED ON AWARD OF THE $5.0M OUTDOOR RECREATION LEGACY PARTNERSHIP (ORLP) GRANT FROM NATIONAL PARK SERVICE: (1) RESOLUTION (a) AUTHORIZING STAFF TO ENTER INTO A CONDITIONAL AGREEMENT WITH THE CALIFORNIA STATE PARKS FOR THE ORLP GRANT; (b) AWARDING CONTRACT NO. 2021-12 ADDITIVE BID ITEMS 1, 2 AND 3 TO 3-D ENTERPRISES, INC., FOR THE SWEETWATER PARK PROJECT, CHULA VISTA, CALIFORNIA, BY UNILATERAL CHANGE ORDER, IN THE AMOUNT OF $3,001,000; AND (2) ORDINANCE APPROVING AN AMENDMENT TO THE DISTRICT’S FY 2022-2023 BUDGET EQUIPMENT OUTLAY AND OTHER CAPITAL APPROPRIATION TO INCREASE THE SWEETWATER PARK PROJECT BUDGET BY $3,301,100 USING FUNDS FROM THE $5,000,000 ORLP GRANT AND RETURNING $1,698,900 TO THE CHULA VISTA BAYFRONT PHASE 1A INFRASTRUCTURE IMPROVEMENT BUDGET
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EXECUTIVE SUMMARY:
The Board’s Authorization of the Sweetwater Park project will allow staff to proceed on Sweetwater Park development as follows:
• Transfer the remaining park project CIP program budget to the Sweetwater Park component within the replacement Equipment Outlay and Other Capital (OC) appropriation. This action will maintain the previously approved $2.875M for the park project slated for the CIP program and transfer those remaining funds for FY 2022-2023 Budget in the OC appropriation for ongoing development of the park project.
• Approve the plans and specifications and award a construction contract for the park project to 3-D Enterprises in the amount of $12,543,730. This action will allow for the construction of Sweetwater Park in a manner that addresses the development policies for Chula Vista Bayfront, and allow for the completion of the park improvements necessary to meet the deadline for the Gaylord Pacific RHCC to receive its certificate of occupancy and comply with the RHCC development agreement. The design resulted from public outreach workshops and surveys conducted in the planning phase and incudes all elements that can be delivered with the funds available from the public financing.
• Authorize amending the OC appropriation by increasing the budget by $13,499,708 utilizing funds from the Chula Vista Bayfront Phase 1A Infrastructure Improvement budget. With this action the Public Art contribution per BPC Policy 609 will increase the current Public Art budget by $35,000 from $125,000 to a new amount of $160,000, however, this increase will not add to the overall project budget amount.
Conditioned on the award of the $5.0M ORLP Grant
• Authorize Staff to enter into an agreement with California State Parks for the $5.0M ORLP Grant. This action will provide additional features to the park project by utilizing the grant funds.
• Award Additive Bid Alternates 1, 2, and 3 to the construction contract to 3-D Enterprises increasing the contract amount by $3,001,000 for a new construction contract amount of $15,544,730. This action will allow for the construction of the park improvements necessary to fulfill the conditions of the ORLP Grant and to provide additional park improvements identified in public outreach workshops and surveys conducted in the planning phase of the Sweetwater project.
• Authorize amending the OC appropriation increasing the budget by $3,301,100 to the budget established in Action Item A utilizing the $5.0M ORLP Grant funds, and returning $1,698,900 to the amount of Chula Vista Bayfront Phase 1A Infrastructure Improvement budget utilized for Action Item A. This action will provide funds for the construction of the park improvements including those identified in Additive Alternates 1, 2, and 3.
Project Description: The Sweetwater Park project includes public park improvements on the S-2 parcel and portions of the SP-1 and HP-1 (N) parcels. The project includes the construction of a 156-car AC paved parking lot along with two decomposed granite parking areas with an additional 63 spaces. In addition to the parking lots, site improvements include grading and earthwork, drainage improvements, site water, sewer, and electrical utilities and service connections to public utilities, an environmental fence, a dumpster enclosure, a growing grounds/maintenance shelter, Growing Grounds building, Restroom/Comfort Station building with sewer lift station, site electrical and lighting improvements, concrete and decomposed granite paved walkways and paths. Site furnishings and amenity improvements include play equipment and surfacing, benches, receptacles, concrete seatwalls, bollards, bike racks, and park signage. Landscape improvements include ground cover, shrubs, and tree plantings to re-vegetate most of the park site. Compensatory mitigation planting is included to mitigate disturbance to sensitive biological resources within the park development footprint, and irrigation improvements in all planted landscape areas.
Development Policy: The Sweetwater Park is a component of Phase 1A Infrastructure Improvements identified in Gaylord Pacific RHCC financing and development agreements. The minimal requirements per the development policies and agreements include a deadline to complete required park improvements in order for the Gaylord Pacific RHCC to receive its certificate of occupancy and the Port to meet its obligations under the agreement. The financing and development agreements also includes a clause allowing RIDA Chula Vista, LLC (RIDA) to terminate the construction contract and take over construction of portions of the park improvements if the Port’s contractor, 3-D Enterprises, Inc. for Contract 2022-012 cannot complete required park improvements by mid-March 2024. These requirements are specified in Contract 2021-012.
Grant Agreement for $5.0M ORLP Grant from National Park Service:
On June 18, 2021, the District applied for the National Park Service (NPS) Land and Water Conservation Fund Outdoor Recreation Legacy Partnership Program (Program) funding for Sweetwater Park. District staff was notified on May 6, 2022, that the District’s application had been selected to continue to the next round of review for a $5M award for Sweetwater Park. District staff has continued to work with California State Parks (State) and NPS for final approval and formal award of grant funding. District staff and State staff are confident in the successful award. Staff is seeking a resolution authorizing staff to enter into a conditional agreement with the NPS and the Department of the Interior. The agreement is expected to include terms that require the District to keep this area as parkland for as long as District is legally allowed (e.g., 66 years), and may include terms regarding needed replacement parkland beyond that time.
Bids Advertisement and Low Responsive Bidder: The final plans and specifications, prepared by design consultant KTUA collaborating with District staff, were utilized in the advertisement for construction bids for the park as a public works project. The Port issued the advertisement for Specification 2021-12 on Planetbids on February 13, 2023. Six (6) bids were received on March 22, 2023. Four (4) of the six (6) bids received were deemed responsive and the low bidder is identified as 3-D Enterprises located in San Diego, CA. The bid is structured to allow the award of only the Base Bid work if the ORLP Grant is not approved or to allow award during or after this date three (3) additive bid alternates in addition to the Base Bid work utilizing the $5.0M ORLP Grant to fund the additional work in the additive bid alternates.
RECOMMENDATION:
Recommendation
Authorize staff to proceed based on the following:
A) (1) Resolution (a) Authorizing Transfer of Remaining Unspent Funds for Sweetwater Park Project in Capital Improvement Program to Sweetwater Park Project in the Equipment Outlay and Other Capital Projects Appropriation (b) Approving Plans and Specifications and Awarding Contract No. 2021-12, Base Bid, to 3-D Enterprises, Inc. in the Amount of $12,543,730 for the Sweetwater Park Project, Chula Vista, California ; and (2) Ordinance Approving and Amendment to the Fiscal Years (FY) 2022-2023 Budget Equipment Outlay and Other Capital Projects Appropriation to increase the Sweetwater Park Budget by $13,499,708 using funds from the Chula Vista Bayfront Phase 1A Infrastructure Improvement Budget
B) Conditioned on Award of the $5.0M Outdoor Recreation Legacy Partnership (ORLP) Grant from National Park Service: (1) Resolution (a) Authorizing Staff to enter into a Conditional Agreement with the California State Parks for the ORLP Grant; (b) Awarding Contract No. 2021-12 Additive Bid Items 1, 2 and 3 to 3-D Enterprises, Inc., for the Sweetwater Park Project, Chula Vista, California, by Unilateral Change Order, in the Amount of $3,001,000; and (2) Ordinance Approving an Amendment to the Fiscal Years 2022-2023 budget Equipment Outlay and Other Capital Projects Appropriation to Increase the Sweetwater Park Project Budget by $3,301,100 using funds from the $5,000,000 ORLP Grant and returning $1,698,900 to the Chula Vista Bayfront Phase 1A Infrastructure Improvement Budget
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FISCAL IMPACT:
The approval by the Board today will not result in any new fiscal impact on the District. Currently, the approved Sweetwater Park project, a Capital Improvement Program (CIP), Project budgeted at $2,875,000 sourced from restricted reserves from the Pacifica Land Exchange Fee. Additionally, $125,000 was contributed to the Public Art fund per BPC Policy 609. All remaining unspent funds in the CIP will transfer to the Equipment Outlay and Other Capital Projects appropriation. Additional funding for project costs comes from the Chula Vista Bayfront Financing Authority (Authority). The Authority funds, identified as Chula Vista Bayfront Phase 1A Infrastructure Improvement Funds, are sourced from the County of San Diego pursuant to the Chula Vista Project Funding Agreement (County Funds) and the 2022B Tax Exempt Bonds issued by the Authority pursuant to the Project Implementation Agreement and Indenture of Trust (2022B Bond Funds). If approved the ORLP Grant will provide an additional $5,000,000 offsetting a portion of the Authority financing required for project costs.
Fiscal Impact without ORLP Grant Funding: If the ORLP Grant is not approved the total project costs for Sweetwater Park project including the $12,543,730 construction contract award amount (Base Bid only) is a total of $16,374,708 to be funded from the current CIP plus an additional $13,499,708 of Authority funds. Current Authority funds available include $6,900,292 in County Funds that was deposited with the District by the trustee from funds provided by County of San Diego pursuant to Chula Vista Project Funding Agreement and $3,299,708 which will be paid by the trustee from the 2022B Tax Exempt Bonds issued by the Authority pursuant to the Project Implementation Agreement. An additional $3,299,708 in County Funds is available and will be deposited or reimbursed to the District by the trustee pursuant to the Board award of the construction contract Base Bid. See Table 1 for the breakdown of costs and funding sources.
Table 1: Funding Sources and Project Costs without ORLP Grant
Fiscal Impact with ORLP Grant Funding: If the $5,000,000 ORLP Grant is approved the total project costs for the Sweetwater Park project including the $15,544,730 construction contract award amount (Base Bid plus Additive Bid Schedules No. 1, 2, and 3) is a total of $19,758,328 to be funded from the current CIP and ORLP Grant amounts plus an additional $11,883,328 of Authority funds. Current Authority funds available include $6,900,292 in County Funds that was deposited with the District by the trustee from funds provided by the County of San Diego pursuant to the Chula Vista P
roject Funding Agreement and $3,299,708 which will be paid by the trustee from the 2022B Tax Exempt Bonds issued by the Authority pursuant to the Project Implementation Agreement. An additional $1,683,328 in County Funds is available and will be deposited or reimbursed to the District by the trustee pursuant to the Board approval of the ORLP Grant. See Table 2 for the breakdown of costs and funding sources.
Table 2: Funding Sources and Project Costs with ORLP Grant
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A Port that the public understands and trusts.
• A vibrant waterfront destination where residents and visitors converge.
• A Port with a healthy and sustainable bay and its environment.
• A Port with a comprehensive vision for Port land and water uses integrated to regional plans.
• A Port that is a safe place to visit, work and play.
DISCUSSION:
Development Policy Requirements: Sweetwater Park is identified as part of the Chula Vista Bayfront Phase 1A Improvements and is required to be completed as a condition prior to the certificate of occupancy for the Gaylord Pacific Resort Hotel and Convention Center (Gaylord RHCC), currently being developed by RIDA Chula Vista, LLC. At the Close of Escrow for Gaylord RHCC, the financing methods and deadlines for construction were established for Sweetwater Park. The financing for project costs is identified in the Fiscal Impact section of this report. The deadline for completion of required Sweetwater Park project improvements is established as mid-March 2024. The portions of work to be completed by that date is termed Early Completion Limited Work. Verification that the portions of work required to be complete by mid-March 2024 is determined by the Port District, however RIDA has the right to terminate the construction contract for cause if progress on the park project is not sufficient by the deadline. These requirements are specified in Contract 2021-012.
Background of Design: In July 2016, the Board authorized selection of KTUA for the initial phase of the Chula Vista Bayfront park design services including the design of Sweetwater Park as part of the CIP project Site Preparation at Chula Vista Bayfront. In 2018 the Board authorized additional funding for KTUA to perform design and public outreach efforts for the preparation of the schematic design and establishment of the park Coastal Development Permit (CDP) for Sweetwater Park. The schematic design was completed in February 2020 and the CDP was issued in June 2020.
In June 2021, as part of the authorizations to advance the development of Gaylord RHCC between the Port District, the City of Chula Vista, and RIDA Chula Vista, LLC, the Board authorized the addition of the Sweetwater Park project to the Capital Improvement Program and authorized the design services agreement with KTUA for the completion of the design and preparation of the contract document plans and specifications, and design services during construction. During this phase of design, the Port District received notification of the California State Parks’ intent to approve the $5.0M ORLP Grant on behalf of the National Park Service. Staff worked with KTUA to incorporate the development agreement deadline requirements and identify additive alternate components in case the grant was to be approved. Preparation of the plans and specifications was completed in December 2022 and staff utilized them in the bid specification utilized for the advertisement of the public works contract for the construction of the park project.
Other notable actions as part of the June 2021 Sweetwater Park authorization include the following:
• Approved an Amendment to the FY 2022 Budget increasing the FY 2022 CIP appropriation by $2,875,000 by transferring $2,875,000 from restricted reserves from the Pacifica Land Exchange Fee.
• Approved an Amendment to the FY 2019-2023 CIP to add the Sweetwater Park Project and Initial Funding of $2,300,000 and increase Capital Labor by $700,000 to be Funded from Restricted Reserves from the Pacifica Land Exchange Fee
• Approved an Amendment to the FY 2022-2023 Budget increasing the FY 2022-2023 public art fund appropriation by $125,000 by transferring $125,000 from restricted reserves from the Pacifica Land Exchange Fee
• Contributed $125,000 to the Public Art Fund for Public Art in the Sweetwater Park Project per BPC Policy 609 to be funded from restricted reserves from the Pacifica Land Exchange Fee
• Approved Agreement No. 56-2021RH with KTUA for Sweetwater Park Design Services for an amount not to exceed $1,033,694.22
ORLP Grant Information and Status: On June 18, 2021, the District applied for the National Park Service (NPS) Land and Water Conservation Fund Outdoor Recreation Legacy Partnership Program (Program) funding for Sweetwater Park. District staff was notified on May 6, 2022, that the District’s application had been selected to continue to the next round of review for a $5M award for Sweetwater Park.
The program funding passes from NPS through California State Parks (State Parks). The grant agreement will be between the District and State Parks. District staff has continued to work with State Parks and NPS for final approval and formal award of grant funding. District staff and State Parks staff are confident in a successful final award. District staff is seeking a resolution authorizing staff to enter into a conditional agreement with California State Parks for $5 million in grant funding.
Because it is not known if the Grant agreement’s final terms will have been established by the date of this action, staff requesting authority to enter into the conditional agreement and utilize the funds to award the Additive Bid Schedule 1, 2, and 3 work after authorization to award the Base Bid portions of work for the park project. The agreement is expected to include terms that require the District to keep this area as parkland for as long as District is legally allowed (e.g., 66 years), and may include terms regarding needed replacement parkland beyond that time.
Construction Contract Bid Advertisement and Award Recommendation: Final Sweetwater Park plans and specifications were included in the bid documents used by the Port to advertise the public works contract for the construction of Sweetwater Park. The Port issued the advertisement for Specification 2021-12 on Planetbids on February 13, 2023. The advertised Engineer’s Estimate was $13,000,000 for the Base Bid project improvements. The advertisement required bids for Base Bid work (Base Bid Schedule) and the additive alternate work (Additive Bid Schedules 1, 2, and 3) as itemized below.
1. Base Bid Schedule work includes the construction of a new park improvement on the S-2 parcel and portions of the SP-1 and HP-1 (N) parcels. The project includes the construction of a 156-car AC paved parking lot along with two decomposed granite parking areas with an additional 63 spaces. In addition to the parking lots, site improvements include grading and earthwork, drainage improvements, site water, sewer, and electrical utilities and service connections to public utilities, an environmental fence, a dumpster enclosure, a Restroom/Comfort Station building with sewer lift station, site electrical and lighting improvements, concrete and decomposed granite paved walkways and paths. Site furnishings and amenity improvements include play equipment and surfacing, benches, receptacles, concrete seatwalls, bollards, bike racks, and park signage. Landscape improvements include groundcover, shrub, and tree plantings to re-vegetate most of the park site. Compensatory mitigation planting is included to mitigate disturbance to sensitive biological resources within the park development footprint, and irrigation improvements in all planted landscape areas.
2. Additive Bid Schedule 1 work includes Growing Grounds Structure and Improvements. Includes construction of the Growing Grounds building and associated site improvements.
3. Additive Bid Schedule 2 work includes Park Grading, Planting and Irrigation Additions. Includes additional grading and earthwork improvements, decomposed granite paths, site furnishings, a wildlife blind, and planting and irrigation improvements.
4. Additive Bid Schedule 3 work includes Park Furnishing and Amenity Additions. Includes picnic tables, pre-engineered shade structures, receptacles, play equipment and surfacing, boulder seating, decomposed granite paving, and concrete paving.
Four bids were received on March 22, 2023, ranging from $12,543,730 to $18,274,678 for Base Bid Schedule and from $15,544,730 to $24,478,478 for the cumulative total of Base Bid Schedule plus Additive Schedules 1, 2, and 3. The bid amounts are as shown in the table below and additionally in Exhibit B - Bid Tabulation Form.
The determination of the lowest responsive and responsible bid was based on the cumulative amounts of the Base Bid Schedule plus the Additive Bid Schedule 1. Additive Bid Schedules 2, and 3 bids weren’t factors in determining lowest bidder. 3-D Enterprise, Inc. was the only bidder to submit a bid, that included the Base Bid Schedule amount and the Additive Bid Schedule 1 amount in a cumulative total that did not exceed the control amount of $14,000,000.
Based on a review of the bids by representatives of the District’s Procurement Department and in accordance with the California Public Contract Code (PCC) Section § 10180, the lowest responsive and responsible bidder was determined to be 3-D Enterprises, Inc. at a base bid amount of $12,543,730 and additive bid alternate amounts $1,046,000 and $1,444,000 and $511,000 for a cumulative amount of $15,544,730. 3-D Enterprises, Inc. combined base bid amount and the amounts of the additive alternates was also lowest among the four bidders. The engineer’s construction cost estimate was $13,500,000 for the work of the Base Bid Schedule. Two out of the four responsive and responsible bids received were under the engineer’s construction cost estimate. The cumulative total of all bid amounts with alternates included exceeded the engineer’s estimate amount, however, the lowest base bid is deemed reasonable when compared to current bid market conditions and is comparable to two of the other three bids submitted.
If additional funding for this project from the ORLP Grant or other sources becomes available after contract award, staff with approved executive director authority can award any or all of the Additive Bid Schedule work within 120 days of the bid date to the contractor for addition of the Additive Bid Schedule work at the prices submitted on the bid date. The additive Bid Schedule work is listed below in the order of priority identified by Port District senior management:
1. Additive Bid Schedule 2
2. Additive Bid Schedule 3
3. Additive Bid Schedule 1
Upon Board authorization, construction is expected to commence in May 2023 and a portion of the project improvements, identified as Early Completion Limited Work related to the Gaylord Pacific RHCC development agreement, will be completed in early March 2024 and the remainder of the project improvements will be completed in August 2024.
General Counsel’s Comments:
The Office of the General Counsel has reviewed and approved this agenda, and proposed resolutions and ordinances, as presented, as to form and legality, and will review the grant agreement when it has been prepared.
Environmental Review:
The proposed Board actions, including without limitation, resolutions regarding the approval of the Sweetwater Park Project in Chula Vista Bayfront, was adequately analyzed in the Final Environmental Impact Report (FEIR) for the Chula Vista Bayfront Master Plan (UPD#83356-EIR-658; SCH #2005081077, Clerk Document No. 56562) prepared and certified by the District on May 18, 2010 (Resolution No. 2010-78), the Addendum to the FEIR, which was adopted by the Board on August 13, 2013 (Resolution No. 2013-138), the Second Addendum to the FEIR, which was adopted by the Board on April 10, 2018 (Resolution No. 2018-0069), and the Third Addendum to the FEIR, which was adopted by the Board on December 8, 2020 (Resolution No. 2020-116). The proposed project is not a separate project for CEQA purposes but is a subsequent discretionary approval related to a previously approved project. (CEQA Guidelines § 15378(c); Van de Kamps Coalition v. Board of Trustees of Los Angeles Comm. College Dist. (2012) 206 Cal.App.4th 1036.) Additionally, pursuant to CEQA Guidelines Sections 15162 and 15163, and based on the review of the entire record, including without limitation, the FEIR, the District finds and recommends that the proposed Board actions do not require further environmental review as: 1) no substantial changes are proposed to the project and no substantial changes have occurred that require major revisions to the previous FEIR due to the involvement of new significant environmental effects or an increase in severity of previously identified significant effects; and 2) no new information of substantial importance has come to light that (a) shows the project will have one or more significant effects not discussed in the previous FEIR, (b) identifies significant impacts more severe than those analyzed in the previous FEIR, (c) shows that mitigation measures or alternatives are now feasible that were identified as infeasible and those mitigation measures or alternatives would reduce significant impacts, or (d) shows mitigation measures or alternatives which are considerably different from those analyzed in the previous FEIR would substantially reduce one or more significant effects on the environment. Because none of these factors have been triggered, pursuant to CEQA Guidelines §15162(b), the District has determined no further analysis or environmental documentation is necessary. Accordingly, the proposed Board actions are merely a step in the furtherance of the original project for which environmental review was performed and no supplemental or subsequent CEQA has been triggered, and no further environmental review is required.
The proposed Board actions comply with Sections 21, 35, and 87 of the Port Act which allow for the Board to pass resolutions, to do all acts necessary and convenient for the exercise of its powers, and for all visitor-serving commercial and industrial uses and purposes, and the construction, reconstruction, repair, and maintenance of commercial and industrial buildings, plants, and facilities. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board actions are consistent with the Public Trust Doctrine.
The proposed Board actions were covered in the Coastal Development Permit (CDP) for Sweetwater Park (CDP-2020-001; Clerk Document No. 71565) approved for issuance by the District on April 14, 2020 (Resolution No. 2020-041) The proposed Board actions are consistent with the CDP. No additional action under the California Coastal Act is required at this time.
Diversity, Equity, and Inclusion Program:
A 20% SBE goal was established for this contract opportunity. 3-D Enterprises, Inc. is an SBE.
PREPARED BY:
Mark McIntire
Capital Project Manager, Engineering-Construction
Attachment(s):
Attachment A: Bid Tabulation Sheet