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Agenda Item
ASR
Control 23-000831 |
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MEETING
DATE: |
12/05/23 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
1 |
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SUBMITTING Agency/Department: |
OC
Public Works (Approved) |
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Department contact person(s): |
James
Treadaway (714) 667-9700 |
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Dylan
Wright (714) 480-2788 |
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Subject: Award
Contract for Mile Square Park Golf Course Conversion - Phase 2
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ceo CONCUR |
County Counsel Review |
Clerk of the
Board |
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Concur |
Approved Agreement to Form |
Discussion |
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3 Votes Board Majority |
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Budgeted: Yes |
Current
Year Cost: $10,005,000 |
Annual
Cost: FY 2024-25 $19,133,500 |
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Staffing
Impact:
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No |
#
of Positions: |
Sole
Source: No |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 12/7/2021 #24, 7/13/2021 #8, 3/13/2018
#S29C, 5/25/1999 #S41B |
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RECOMMENDED
ACTION(S):
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1. |
Award a contract to Ohno Construction
Company for the Mile Square Park Golf Course Conversion - Phase 2 project in
a Guaranteed Maximum Price of $29,133,500, which includes $1,700,000 for
Guaranteed Maximum Price 1: Design Permitting and Pre-Construction Phase and
$24,705,500 for all remaining Guaranteed Maximum Price including Construction
Phase Services and $2,728,000 for contingencies, effective upon Board of
Supervisors approval, to be completed within 820 days of the effective date
of the first Notice to Proceed. |
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2. |
Authorize the Director of OC Public
Works or designee to execute the contract with Ohno Construction Company. |
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3. |
Approve stipend payment in the amount of
$5,000 to Sully-Miller Contracting Company for submitting a proposal for
Design Permitting and Pre-Construction Phase and Construction Phase Services
for the Mile Square Park Golf Course Conversion - Phase 2 project. |
SUMMARY:
Award of a
contract to Ohno Construction Company to provide Design Permitting and
Pre-Construction Phase and Construction Phase Services for the Mile Square Park
Golf Course Conversion - Phase 2 project will provide for redevelopment of
93-acres into recreational open space at Mile Square Regional Park.
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 multipurpose facility, an
archery range, a nature area, picnic shelters and passive green space. Portions
of the Park’s acreage are leased to three entities. Two private entities manage
the Park’s golf courses, David L. Baker Golf Course and Mile Square Golf Course
(MSGC). 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. 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.
On August 28,
2017, as part of an audit conducted by OC Community Resources/OC Parks (OCCR/OC
Parks) and the Internal Audit Department (IA), 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 OCCR/OC
Parks worked with MSGC representatives to identify an approximately 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. 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 OCCR/OC Parks on July 31, 2021.
In 2018, following
approval of the Lease Amendment and the forecasted conversion of the Expansion
Area, OC Community Resources/OC Parks staff immediately began development of
the Park Master Plan (Master Plan). Central to this process was public and
community engagement. OCCR/OC Parks held community meeting on January 16, 2019,
and a large open house at the Park’s Freedom Hall on August 15, 2019, to
discuss the Master Plan planning process, invite public comments, conduct
surveys and solicit feedback on alternative park plans. 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.
On July 13, 2021,
the Board approved the Park Master Plan, adopted Resolution 210-79 certifying
Final EIR No. 633, adopted the MMRP Final EIR No. 633 and adopted the Findings
of Fact for Final EIR No. 633 for the Master Plan.
The Master Plan
identified five phases of development. Phase I focused on converting the
Expansion Area into land suitable for public park use. On December 7, 2021,
after a competitive procurement process, the Board approved Contract
MA-012-22010543 with Ohno Construction Company (Contractor). Phase I included
demolition of existing golf course features, earthwork, paving of new vehicular
and walking paths, lake improvements, restroom building renovation,
installation of new electrical and utility infrastructure and adjustments to
the existing irrigation system. Construction was completed in October 2023.
The Park Golf
Course Conversion - Phase 2 (Project) will provide a main and secondary vehicle
route, three parking areas, wet and dry utilities, an amphitheater, a great
meadow area, a children's play area, a unisex restroom with eight stalls, a
multi-use field and removal and filling of a lake.
On April 3, 2023,
OC Public Works issued a Request for Qualification documents for the Project
through the County online bidding system. Three contractors responded and were
pre-qualified to submit proposals in response to the County's subsequent
Request for Proposals (RFP).
On May 16, 2023, OC Public Works issued an
RFP for the Project. The RFP was advertised on the County online bidding
system. The RFP included a guarantee of a $5,000 stipend to those respondents
that were not awarded a contract. The inclusion of a stipend is a traditional
component in complex design-build projects such as this Project due to the
extensive resources required for respondents to prepare a proposal.
Three proposals
were received and two were deemed responsive. The evaluation panel, consisting
of subject matter experts from OC Public Works, OC Community Resources/OC Parks
and one from the public sector, scored the responsive proposals and provided
its recommendation. See Attachment D for the Summary of Evaluators' Scoring. The
resulting rankings are as follows:
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Contractors |
Rank |
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Ohno
Construction Company |
1 |
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Sully-Miller
Contracting Company |
2 |
OC Public Works is
procuring services for this Project in accordance with the 2020 Design and
Construction Procurement Policy Manual (DCPM), Section 5. The Orange County
Preference Policy is not applicable to contracts procured in accordance with
the DCPM.
OC Public Works is recommending the Board
award Contract MA-012-24010446 (Contract) to the Contractor in a Guaranteed
Maximum Price (GMP) of $29,133,500, which includes $1,700,000 for GMP 1: Design
Permitting and Pre-Construction Phase, $24,705,500 for GMP 2: Construction
Phase Services and $2,728,000 for contingencies, effective upon Board approval
to be completed within 820 days of the effective date of the first Notice to
Proceed. OC Public Works is also recommending Board approval of a stipend payment
of $5,000 to Sully-Miller Contracting Company in accordance with the terms of
the RFP.
The Contractor’s license number was
verified as current and active through the Contractors State License Board
database on June 6, 2023. A copy of the verification is on file. The Contractor
is based in Los Angeles County.
OC Public Works has conducted due
diligence on the Contractor. Reference checks were satisfactory and completed
with California State University, San Marcos; San Diego County Regional Airport
Authority; and San Diego State University regarding similar projects.
This Contract
includes subcontractors. See Attachment B for the Contract Summary Form.
Compliance
with CEQA:
This Project is a necessarily included element of the Project considered in
Final EIR No. 633 for the Park 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 in the Project, no substantial changes have
occurred in the circumstances under which the Project is being undertaken and
no new information of substantial importance to the Project, which was not
known or could not have been known when the Final EIR No. 633 was certified and
the MMRP was adopted; therefore, no further environmental review is required.
FINANCIAL IMPACT:
Appropriations for
the proposed Contract are included in Fund 406, OC Parks, FY 2023-24 Budget and
will be included in the budgeting process for future years.
The proposed
Contract includes provisions stating that the Contract may be terminated upon
written notice for cause and upon not less than 30 days' written notice for
convenience without penalty to the County.
STAFFING IMPACT:
N/A
REVIEWING
AGENCIES:
OC Community Resources/OC Parks
ATTACHMENT(S):
Attachment A - Contract
MA-012-24010446 with Ohno Construction Company
Attachment B - Contract Summary Form
Attachment C - Memorandum of Recommendation
Attachment D - Summary of Evaluators' Scoring
Attachment E - Individual Scoring Sheets
Attachment F - Project Location Map