Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  21-000895

 

MEETING DATE:

12/07/21

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

1

SUBMITTING Agency/Department:

OC Public Works   (Approved)

Department contact person(s):

James Treadaway (714) 667-9700 

 

 

Dylan Wright (714) 480-2788

 

 

Subject:  Approve Contract for Mile Square Regional Park Golf Course Conversion Phase I

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost:   $11,375,132

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:            

Sole Source:   No

    Current Fiscal Year Revenue: N/A

  Funding Source:      Fund 406: 100%

County Audit in last 3 years: No

 

 

    Prior Board Action:         7/13/2021 #8, 3/13/2018 #S29C, 5/25/1999 #S41B, 12/9/1997 #54

 

RECOMMENDED ACTION(S):

 

 

1.

Award construction contract to Ohno Construction Company for Mile Square Regional Park Golf Course Conversion Phase I in the amount of $11,375,132, effective December 7, 2021, to be completed within 322 calendar days of the effective date of the Notice to Proceed.

 

2.

Authorize the Director of OC Public Works or designee to execute the construction contract with Ohno Construction Company.

 

3.

Authorize return of bid guarantees to all bidders upon execution of the contract.

 

 

 

 

SUMMARY:

 

Award of the construction contract for the Mile Square Regional Park Golf Course Conversion Phase I will convert the existing 93-acre portion of golf course land relinquished to the County of Orange into land suitable for public park use, which will enhance the visitor experience by increasing public access to park space.

 

 

 

 

BACKGROUND INFORMATION:

 

Mile Square Regional Park (Park) is a 607-acre County of Orange (County) park located in the City of Fountain Valley (City). Serving a large, diverse community, this expansive regional park offers a variety of amenities, including two fishing lakes, multiple sports fields, a 10,000-square-foot multi-purpose facility, an archery range, a Nature Area, picnic shelters and passive green space. A majority of the Park’s acreage is leased to three entities. Two private entities manage the Park’s golf courses, David L. Baker Golf Course (DBGC) and Mile Square Golf Course (MSGC) and the City leases, manages and operates the Fountain Valley Recreation Center and Sports Park.

 

On April 9, 1969, a portion of the Park was leased to MSGC for the development and operation of an 18-hole golf course facility. The original lease expired April 17, 1997, and was superseded by an Interim Lease agreement approved by the Board of Supervisors (Board) on December 9, 1997, wherein the County granted MSGC an option to redevelop and expand the Mile Square Golf facility by constructing an additional 18-hole golf course on land in the center area of the park, commonly known as the Triangle. On May 25, 1999, the Board approved Draft Environmental Impact Report (EIR) 570 (to amend the Park General Development Plan (GDP)) and Resolution 99-204, as well as approving a 40-year lease (Lease) with MSGC, effective July 1, 1999, through June 30, 2039. The amendment to the GDP allowed for development of the 137-acre Triangle, which included renovation of the existing 18-hole course; addition of a new, more challenging 18-hole course (for a total of 36 holes); renovation and expansion of the existing clubhouse; and expansion of parking and landscaping as the construction was being completed.

 

OC Community Resources/OC Parks (OC Parks) worked with the Internal Audit Department (IA) to determine whether MSGC’s records adequately supported the monthly gross receipts reported to the County and if rent owed was properly paid in accordance with the Lease. In August 28, 2017, IA found that there was a miscalculation of MSGC’s minimum annual rent in 2009 and 2014, which resulted in an accumulated rent underpayment of approximately $3.6 million. To address the rent underpayment identified by IA, the County negotiated an amendment to the Lease with new lease terms that included MSGC relinquishing a portion of the leased premises back to the County.

 

On March 13, 2018, the Board approved the First Amendment to the Lease with MSGC to adjust lease terms and relinquish to the County no less than 85 acres of the Lease premises by January 31, 2021, in consideration for rent owed on the Lease. This First Amendment provided for the reduction of MSGC’s leasehold by 18 holes, leaving the Park with two remaining 18-hole golf courses: one at DBGC and one at MSGC.

 

Following the First Amendment to the Lease, County Executive Office-Real Estate and OC Parks worked with MSGC representatives to identify an approximate 93-acre portion (Expansion Area) of the MSGC Lease premises to be returned to County management. This new leasehold boundary was realized on May 6, 2019, in a Second Amendment to the Lease under delegated authority of the County’s Chief Real Estate Officer. Due to business impacts caused by the COVID-19 pandemic, many County lessees executed tolling agreements to provide relief to certain lease requirements. Discussions between the County and MSGC during this time resulted in a new deadline of July 31, 2021, for turnover of the Expansion Area. Prior to that date, MSGC conducted sitework on the property in preparation for its return to the County, including the installation of a fence along the new property boundary, removal of golf amenities (e.g., signage, putting cups, flagpoles) and necessary repairs to ensure all infrastructure was transferred in good working order. The property was successfully transferred and accepted by OC Parks on July 31, 2021.

 

On July 13, 2021, the Board approved the Park Master Plan (Master Plan), adopted Resolution 210-79 certifying the Final EIR No. 633 for the Master Plan, adopted the Mitigation Monitoring Reporting Program (MMRP) Final EIR No. 633 for the Master Plan and adopted the Findings of Fact for Final EIR No. 633 for the Master Plan.

 

The Master Plan identified five phases of development. The Park Golf Course Conversion Phase I (Project) constitutes the first phase of the Master Plan. The Project will take place mostly within the Expansion Area to convert the existing golf course into land suitable for public park use. Currently, the Expansion Area contains sand bunkers, golf cart paths, fairways, putting greens and other golf course features.

 

The Project will include demolition of existing golf course features, earthwork, paving of new walking paths, lake construction, restroom building renovation, installation of new electrical and utility infrastructure and adjustments to the existing irrigation system. The Project will restore the Expansion Area to a state that can be safely utilized as public park space in addition to beautifying the area.

 

On August 24, 2021, OC Public Works issued pre-qualification documents through the County online bidding system for the Project. Twelve contractors submitted Statements of Qualifications and nine were pre-qualified and allowed to submit proposals in response to the County’s subsequent Invitation for Bid (IFB).

 

On September 14, 2021, OC Public Works issued an IFB to the pre-qualified contractors for the Project.  Three bids were received and all were deemed responsive.

 

The following summarizes the responsive bids and provides a comparison against the Engineer’s Estimate (EE).

 

Engineer’s Estimate                                                            $12,138,000

Ohno Construction Company                                                $11,595,132

Environmental Construction, Inc.                                         $11,932,768

Bitech Construction Company Inc.                                       $14,483,101

 

A full summary of the responsive bids can be found in the Bid Summary as Attachment C.

 

The lowest responsive and responsible bid submitted by Ohno Construction Company (Contractor) for this Project is approximately 5 percent below the EE of $12,138,000. OC Public Works has reviewed the bid submitted by the Contractor and verified that the difference is not the result of errors or omissions in the estimate.

 

OC Public Works is procuring services for this Project in accordance with the 2020 Design and Construction Procurement Policy Manual, Section 4.4-102. The Orange County Preference Policy is not applicable to this contract award.

 

OC Public Works is recommending that the Board approve Contract MA-012-22010543 (Contract) for the Project with the Contractor in the amount of $11,375,132 (additive bid item for maintenance of existing turf within Project limits in the amount of $220,000 was removed from the bid), effective December 7, 2021, to be completed within 322 calendar days of the effective date of the Notice to Proceed.

 

The Contractor's license number was verified as current and active through the Contractors State License Board database as of September 8, 2021.  A copy of the verification is on file.

 

OC Public Works has conducted due diligence on the Contractor. Reference checks were satisfactory and completed with Los Angeles County, Los Angeles Unified School District and KARE Youth League regarding similar projects.

 

This Contract includes subcontractors. See Attachment B for information regarding subcontractors and the Contract Summary Form.

 

The Contract is coming to the Board less than 30 days before its commencement due to additional negotiation time required with the Contractor.

 

Compliance with CEQA: This Project is a necessarily included element of the Project considered in Final EIR No. 633 for the Master Plan, certified by the Board on July 13, 2021, which adequately addressed the effects of the proposed Project. No substantial changes have been made to the Project, no substantial changes have occurred in the circumstances under which the Project is being undertaken and no there is no new information of substantial importance to the Project that was not known or could not have been known when the Final EIR No. 633 for the Master Plan was certified and the MMRP was adopted; therefore, no further environmental review is required.

 

 

 

FINANCIAL IMPACT:

 

Appropriations for this Contract are included in OC Parks, Fund 406, FY 2021–22 Budget. In April 2021, OC Parks was approved for $3,134,965 in grant funding for this Project from the California Department of Parks and Recreation through the Parks and Water Bond Act of 2018 (Proposition 68) Per Capita Grant Program. This grant will partially offset the cost of this Contract.

 

The proposed Contract includes a provision stating the Contract is subject to, and contingent upon, applicable budgetary appropriations being approved by the Board for each fiscal year during the term of the Contract. If such appropriations are not approved, the Contract may be immediately terminated without penalty to the County.

 

 

 

STAFFING IMPACT:

 

N/A

 

REVIEWING AGENCIES:

 

OC Community Resources/OC Parks

 

ATTACHMENT(S):

 

Attachment A - Contract MA-012-22010543 with Ohno Construction Company
Attachment B - Contract Summary Form
Attachment C - Bid Summary
Attachment D - Project Location Map