HomeMy WebLinkAboutResolution 2008-220 N.C.S. 12/01/2008Resolution No. 2008-.220 N.C.S.
of the City of Petaluma, California
ACCEPTING THE COMPLETION OF PUBLIC IMPROVEMENTS
REQUIRED BY THE OWNER PARTICIPATION AGREEMENT
BY AND BETWEEN BASIN STREET PROPERTIES AND THE
PETALUMA COMMUNITY DEVELOPMENT COMMISSION
("THEATRE DISTRICT INFRASTRUCTURE IMPROVEMENTS PROJECT 0200703")
WHEREAS, the Petaluma Community Development Commission ("PCDC") entered
into an Owner Participation Agreement by and Between the Petaluma Community Development
Commission and Basin Street Properties ("Basin Street"), effective February 27, 2004 (the
"OPA"); and,
WHEREAS, the OPA required Basin Street to construct and the PCDC to fund certain
public improvements identified in the OPA, including work required to rehabilitate the street
system (streets, curb, gutter, sidewalk), install new underground utility infrastructure where
necessary, and install the improvements outlined in the City of Petaluma Streetscape Master Plan
(the "Public Improvements," also referred to herein as the "Theatre District Infrastructure
Improvements Project 200703"); and,
WHEREAS, the OPA required the PCDC to contribute a "maximum amount" of $4.8
million toward Basin Street's share of the Public Improvements required by the development
project. and also pay the balance of $2.75 million as the City's share of the original project public
improvement cost estimate of $7.55 million; and,
WHEREAS, the OPA provided that Basin Street was not required to pay any amounts
arising from City or PCDC changes to the work, from unforeseen subsurface conditions or in
excess of the maximum amount, if the initial qualified bid exceeded the maximum amount, and
the PCDC's payment of increased amounts was left to later negotiation, reduction of scope of
work or some other course of action; and,
WHEREAS, on September 19, 2005, by PCDC Resolution 2005-03, after reviewing
staff's presentation of increased costs of the Public Improvements, the PCDC approved a First
Amendment to Owner Participation Agreement with Basin Street Properties ("First Amendment
to OPA") which increased the PCDC/City's maximum payment for the Public Improvements to
$17,100,655 and increased PCDC/City funding to $16,396,184; and,
WHEREAS, on September 19, 2005, by Resolution 2005-163 N.C.S., the City Council
approved a total project budget for the Public Improvements of $17,100,665; and,
WHEREAS, the First Amendment to OPA provided that Basin Street would contribute
$704,481 of the increased construction costs as part of the cost of hazardous materials
remediation related to the Public Improvements; and;
WHEREAS, Basin Street has contributed $704,481 of the increased construction costs as
part of the cost of hazardous materials remediation related to construction of the Public
Resolution No. 2008-220 N.C.S. Page 1
Improvements; and,
WHEREAS, Basin Street initially contracted with North Bay Construction, Inc.
("NBCI") to construct the Public Improvements (Theatre District Infrastructure Improvements
Project C200703) for the amount of $9,932,390.35; and,
WHEREAS, the following Change Orders affecting the final contract amount have been
approved in accordance with the construction contract. and the OPA:
Change Description Cost
Order #
#1 Project Value Engineering ($1,403,740.51)
#2 Joint Trench & Underground Plan Revisions $650,481..56
#3 Various Design Changes and Field Orders $3,441,430.60
Total of all Change Orders $2,688,171.65
WHEREAS, the final construction contract amount, including all approved contract
change orders is $12,620,562.00; and,
WHEREAS, the Public Improvements (Theatre District Infrastructure Improvements
Project C200703) have been inspected by the City and the City has determined that the work is
complete and in accordance with the project plans and specifications; and,
WHEREAS, Basin Street. has provided the City with as-built drawings or plans and
specifications and has provided full lien releases from NBCI in the form required by California
Civil Code section 3262, fulfilling certain requirements of Section 2.6.6 of the OPA; and,
WHEREAS, Basin Street has provided to the City copies of all required maintenance
bonds, warranties, guaranties or other evidence of contingent obligations by NBCI and/or any
equipment or material suppliers for the work or its components, fulfilling certain requirements of
Section 2.6.6 of the OPA; and,
WHEREAS, as provided in Section 2.6.5.1 of the OPA, Basin Street remains obligated
to assist the City or the PCDC, if needed, in securing performance of any warranty
responsibilities of NBCI and/or its subcontractors and to review and monitor any warranty work
for a twelve month period following final completion of the Public Improvements; and,
WHEREAS, Section 2.6.6.2 of the OPA provides that the City shall accept each Public
Improvement when fully complete, provided that inspection and documentation has occurred in
compliance with the OPA and the Public Improvement(s) are ready for use; and,
WHEREAS, pursuant to the provisions of the OPA, including but not limited to Section
2.6.5.2, acceptance of the Public Improvements shall not relieve Basin Street of its obligations to
fulfill all obligations of the OPA as prescribed, and,
WHEREAS, based on the foregoing, staff recommends acceptance of the Public
Improvements on behalf of the City of Petaluma.
Resolution No. 2008-220 N.C.S. Nage 2
NOW, THEREFORE, BE IT RESOLVED by the City of Petaluma that
The City of Petaluma accepts the Public Improvements defined in and required by
the Owner Participation Agreement By and Between Basin Street Properties and
the Petaluma Community Development Commission as modified by the First
Amendment to Owner Participation Agreement, which Public Improvements are
contained in Theatre District Infrastructure Improvements Project C200703.
Under the power and authority conferred upon this Council by the Charter of said City
REFERENCE: 1 hereby certify the foregoing Resolution was introduced and adopted by the Approved. as to
Council of the City of Petaluma at a Regular meeting on the 1 s' day of December, r
2008, by the following vote:
City Attorney
AYES
Barrett, Freitas, Harris, Nau, O'[3rien, Vice Mayor Babbitt, Mayor Tcxliatt
NOES: None
ABSENT: None
ABSTAIN: None
ATTE T: ~ f ~`-~
S
City Clerk
Resolution No. 2008-220 N.C.S. Page 3