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HomeMy WebLinkAbout1997-10-15 - AGENDA REPORTS - WEST NEWHALL PH 2 (2)UNFINISHED BUSINESS CITY OF SANTA CLARITA AGENDA REPORT City Mani Item to be Kevin Tonoian DATE: October 15, 1997 SUBJECT: WEST NEWHALL IMPROVEMENTS, PHASE 2, PROJECT NO. 72034: CHANGE ORDER TO CONTRACT DEPARTMENT: Transit and Engineering Services City Council approve and authorize the City Manager to execute a change order for the West Newhall Improvements, Phase 2, Project No. 72034, to Padilla Paving Company in the amount of $112,881.15, and authorize a ten percent (10%) contingency. BACKGROUND At the June 10, 1997 meeting, the City Council approved the award of contract for the West Newhall Improvements, Phase 2, Project No. 72034, to Padilla Paving Company in the amount of $418,041.55, and authorized a ten percent (10%) contingency. Pursuant to the City Council direction, the award of contract to Padilla Paving Company was subject to the resolution of the utility conflict with the Newhall Water County District (NCWD) to the satisfaction of the City Manager. As the City Council may recall, Phase 2 of the West Newhall Improvement Program was originally scheduled to begin in July of 1997. However, to date staff has not authorized the contractor to begin Phase 2 work, pending the completion of all utility relocation efforts in the project area. When the City Council originally took action on this item, NCWD and.City staff were attempting to determine which agency was responsible for assuming costs associated with relocating a waterline (own and maintained by NCWD) located in the project area. The area of disagreement between NCWD and the City focused upon an agreement entered into by both agencies in October of 1995, relating to Santa Clarita's first Redevelopment Agency. It is NCWD opinion that this Agreement requires the City to utilize Community Development Block Grant (CDBG) Entitlement Funds to pay for cost associated with utility relocations in the project area. Conversely, it is City staff's opinion that prevailing state law obligates NCWD to pay for all such relocation costs, as their pipeline is located within the City's right-of-way. While NCWD and City staff continue to maintain differing interpretations of the October 1995 Agreement, both agencies recognize the importance of moving forward with the completion of Phase 2 improvements in a timely fashion. Therefore, NCWD.and City staff have negotiated a potential compromise that will allow all reMOO u tion work to be completed, and Phase 2 construction work to commence P P P WEST NEWHALL IMPROVEMENTS, PHASE 2: CHANGE ORDER TO CONTRACT October 15, 1997 Page 2 At their cost, NCWD contracted with an engineering firm to complete design work associated with the relocation of the water pipeline in the Phase 2 project area. These design plans were forwarded to the City's Engineering Division for review by staff and the City's potential Phase 2 project contractor. Based upon this joint review of these design plans, staff has determined that relocation of NCWD water pipeline will cost $112,881.15 (plus a ten percent contingency). In the interest of expediting this important community project, at this time staff would like to incorporate these additional project costs in the form of a "change order" to the original award of contract to Padilla Paving Company. At this time, both NCWD and the City have agreed to share the costs of relocating the existing water pipeline in the project area, pending a formal review of the October 1995 Agreement. While NCWD and City staff will continue efforts to resolve this at an administrative level, this matter may require the involvement of a third party to resolve. The Agreement between NCWD and the City includes a provision that allows both parties (should any dispute arise) to resolve matters of disagreement through arbitration by an retired Superior Court Judge. Should this matter require the services of an arbitrator, a judgement will determine the City's financial responsibility in this matter. Potentially, the City could be required to pay the total costs associated with the relocation of NCWD water pipeline. Until a final resolution is reached, both NCWD and the City will each contribute a total amount (including contingency costs) of $62,084.61 towards the completion of this utility relocation. It is staffs intention to utilize project savings from Phase 1 of the West Newhall Improvement Program to fund these relocation costs. Funds for these project costs were anticipated by staff, and were previously allocated by the City Council during the continuing appropriation process. ALTERNATIVE ACTIONS 1. Direct the City Manager to re -bid the West Newhall Improvements, Phase 2 Project, in a manner that includes the utility relocation scope of work, 2. Direct the City Manager to continue efforts to resolve outstanding issues with NCWD prior to beginning West Newhall Improvements, Phase 2 work; 3. Other direction as determined by the City Council. FISCAL IMPACT City staff have agreed to share relocation costs with NCWD, pending a review of the October 1995 Agreement between NCWD and the City. The City will initially pay half the costs associated with this project, at an amount not to exceed $62,084.61. Pending a potential arbitrator's decision in this matter, the City may be responsible for none, or all of the utility relocation costs associated with this project. KMT hAdwh.d\..4 .h.wpd