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Home My WebLink About2000-05-09 - AGENDA REPORTS - GVR ADMINISTRATION (2)CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval "49ik_ i Item to be presented by: Steve Stark UNFINISHED BUSINESS DATE: May 9, 2000 SUBJECT: GOLDEN VALLEY ROAD ADMINISTRATION DEPARTMENT: Administrative Services RECOMMENDED ACTION 1. Authorize City Manager to sign an agreement with ESI for the consultant to cover the inspection and assessment work through construction for an amount not to exceed $445,000 over the estimated three-year build -out of the project. 2. City Council consider waiving the three -bid requirement, as set forth in the City/Developer Funding Agreement, for the developer's grading of Golden Valley Road, Phases II & III, as requested by the developer. BACKGROUND As the Council is aware, staff has spent the last year finalizing the necessary documents to sell Community Facility District (CFD) Bonds in order to raise proceeds for the developer's construction of Golden Valley Road in conjunction with the Santa Clarita Business Park. Tonight, staff has asked the City Council to approve a Resolution of Issuance that would allow the City to sell bonds. As part of the process, certain internal administrative actions must take place for the City to properly carry its duties out while tracking the developer's construction activities. As a result of tonight's action by the Council, and with Phases II & III of Golden Valley Road beginning in the next several months, it is necessary that the above mentioned administrative actions take place prior to the initiation of the project. This is why staff is asking Council to approve an agreement with ESI and consider a request by the developer as it relates to the Phases II & III of Golden Valley Road. First, staff is asking Council to approve a contract with ESI to conduct the acquisition engineering work for the improvements, including the road and certain in -track facilities. The engineering firm that the City is hiring has expertise at handling inspection and acquisition of the facilities being constructed for the City. Ultimately this firm will be responsible for approving whether the facilities are APPROVED Agenda ltelmlha_�a GOLDEN VALLEY ROAD ADMINISTRATION May 9, 2000 — Page 2 constructed by the developer to the standards identified by the specifications agreed to the City engineers. Second, staff is asking Council, on behalf of the developer, to consider waiving the three -bid requirement as contained in the City/Developer Funding Agreement for grading on Phases II & III. The developer has secured a competitive price for the grading associated with Golden Valley Road and the Santa Clarita Business Park. The City's Transportation & Engineering Services Department has agreed to the cost associated with the road project as outlined in all the bond documents. ALTERNATIVE ACTIONS City Council may choose not to approve the ESI contract and not waive the three -bid requirement for grading on Golden Valley Road Phases II & III. City Council may choose to approve the ESI contract but not waive the three -bid requirement for grading. Other action as determined by the City Council. FISCAL IMPACT Funds for this project will come directly from bond proceeds once the sale of bonds is complete. The $445,000 contract for acquisition engineering services will be used over a three-year period, at $100,000 per year, plus an additional $145,000 of permit fees for inspection services. ATTACHMENT ESI Proposal (Available in City Clerk's reading file.) Letter from Spirit Construction SS:FO:hds wuncil\gv dmin May'03 00 03:06p Spirit Construction, Inc. 661-799-4957 p.2 Orit Constructic WBomfa License # 747848 23120 Lyons Avenue, #8419 Santa Clarita, Cafffomfa 91321 661-7994898 ♦ Fax 861.7994.957 May 3, 2000 The City of Santa Clarita 23920 Valencia Blvd., Ste. 300 Santa Clarita, CA 91355 Attention: Robert Newman Subject; Requirements for Bids Santa Clarita Business Park/Golden Va11ev Road Dear Robert, Spirit Construction, Inc, is presently the Project Manager for the construction of Santa Clarita Business Park, Golden Valley Road, and Golden Triangle Road. Two years prior to implementation of the Construction Funding District (Mello - Roos) Spirit negotiated prices for the grading work of the Santa Clarita Business Park and Golden Valley Road at the lowest possible price Since then, for mutual benefit, the Santa Clarita Business Paris entered into a Mello -Roos agreement (C.F.D.) with the City. In that agreement it states that three (3) bids are required for each scope of work. Yet, under the terms of the Development Agreement and Reimbursement Agreement, Spirit is not required to provide three (3) bids for the related work. Spirit Construction, Inc. entered into a contract on 4/22/98 with A.C.I., Inc. for the earthwork items of the Santa Clarfta Business Park prior to the establishment of the Mello -Roos. Since that time, ACI has not increased their prices for labor, fuel or tires. This price advantage of a two year old contract we are concerned that W9 will lose if we rebid the earthwork. We are asking the City to waive the requirement of three (3) bids on the earthwork Items only. For all other other scopes of work (e.g., street improvements, drainage), Spirit will abide by the current requirements of three (3) bids. leader'dn WzaWn=>Schatulel*Budgetw>Producoonu>Safety=>pmflt$ May' u3 uu u3:u'/p Spirit Construction, Inc. 661-799-4957 p.3 Robert Newman City of Santa Clarita May 3, 2000 Page 2 of 2 Should the City require us to go out to bid for the mass excavation work, we can expect higher prices and several delays in the starting schedule for construction Spirit does not believe that of Golden Valley Road Phases 2 and 3. If we are required to re bid the work we will receive a I price than we now have. Should you have any questions please call me. Thank you, Sincerely Yours, Robert Sawyer c: Larry Rasmussen Peter Tartagfino MAY -04-00 THU 14:64 EMPLOYMENT SYSTEMS FAX NO. 8584512502 P.02 ID;805259248 7AN 31'00 11.32 NO -008 P.02 EMPLOYMENT SYSTLMS.. INC. January 27, .7000 Robert crewman Assidtaat City Engineer City of St= Clarity ='= Valanoia Blvd, Santa Clnritty CA X1355 bcar.w. Newmaa, Thsc letter is a vunfmnation of our agre stmt that unvloyumcc Systems, Inc, ma provide the City Of Santa Clarita with a projat Hoarier, John Spalione will be provided on an as heeded bass 110T a hilt rare nfpayroll costs phis 5200.+30'"f rtiatsativv fee per month (sac Exhibit A•$), His start date shaft bo Iaauary 3 i, z000 and will end whet directed by the, rt Please to'" it wv intbrm me immediately if it does r,m accurately al rerm our a ity, ilka, Sincerely, I.01'MEiiT 3YMTBho, Michello 8tiery Pr'csidmt A"•Ci'pwcc: t49)A0,t4-- /AfIA1.w4 •A) PlIt Njvwc_ nate Ao�.,- Trttn t)�%p t5iar aemarde Caurr • S�au 2u .8fl CA 92]27 2624 • (>15� iSi fRki7 0Fax (85V 461-' MAY -04-00 THU 14:54 EMPLOYMENT SYSTEMS Employment Systems, Inc., FAX N0. 8584512502 Proposal to City of Santa Clarita For Contract Staffing of Project Manager Exhibit A-5 Annual Annusl kfauriy j # rats. $8 tiff Hours Worked compema9or,&Costs Regular hours 40 hour&Week 2,060 $166,400 Benefit Hours Vacation 0 dayslyear per employee Holiday 0 dayslyear per employee Sick 0 days/year per employee Total Hours (per employee) 0 $0 0 $0 0 $0 2,080 ►otaE+41..... met tHrn.Pe� El tpiayee Payroll Taxes and Workers Compensation F ICA (wanes up to 55,400 per employee) Medicare Sul (wages up to 7,C00 peremploy") FLITA (wages up to 7,000 per employee) Workers Compensation (ewuding 0- premFum) Classification Code (ecio) Group Invunance Long term disability (sr meed .ss% of wages) Employee Medical Insurance (pruder Sal Hmo) Employee Dental Insurance (p,w wwai orao) Life and ADS,D (Gu-smee Ute . -,s per tooamdnm, ESI Administrative charges $200.00 per month)per employee Rate Subject Wages $0 6.20% 166,400 $10,317 1.45% 166,400 $2,413 3.20% 7,000 $224 0.50% 7,000 $56 2.66% 166,400 $4,433 0.511A 0 $0 123.76 0 $0 23.80 0 $0 0.18 0 $0 $200.00 12 $2.400 P. 03 1127700 2:44 PM Proposal 1.31.00