HomeMy WebLinkAbout2001-05-22 - AGENDA REPORTS - GVR PHASE III (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Appro al:
Item to be presented by: Robert Newman
DATE: May 22, 2001
SUBJECT: GOLDEN VALLEY ROAD PHASE III, PROJECT NO. S3008 —
AMEND FUNDING AGREEMENTS BETWEEN THE CITY OF
SANTA CLARITA AND WILLIAM S. HART UNION HIGH SCHOOL
DISTRICT, AND THE CITY OF SANTA CLARITA AND THE SANTA
CLARITA VALLEY FACILITIES FOUNDATION; AND ADVERTISE
FOR BIDS
DEPARTMENT: Transportation & Engineering Services
RECOMMENDED ACTION
City Council authorize the City Manager or designee, subject to City Attorney approval, to
approve the amendments to the funding agreements between the City of Santa Clarita and
William S. Hart Union High School District, and the City of Santa Clarita and the Santa
Clarita Valley Facilities Foundation; and approve the plans and specifications and
authorize advertising for bids for Golden Valley Road Phase III, Project No. S3008.
BACKGROUND
On August 4, 1999, the City Council took several actions as part of a special City Council
meeting related to the construction of Golden Valley Road. As a result, the City entered
into separate agreements with the William S. Hart Union High School District and
Spirit Properties Ltd. Each agreement created a mechanism for Golden Valley Road to be
built in phases. The City would build Phase I jointly with the School District to take
advantage of economies of scale related to the construction of their future high school.
Phases II and III would be constructed as part of the Spirit Properties Ltd. Santa Clarita
Business Park development.
On December 14, 1999, City Council approved the Funding Agreements between the City of
Santa Clarita and the Santa Clarita Facilities Foundation, and the City of Santa Clarita
and the William S. Hart Union High School District.
On March 14, 2000, City Council awarded a contract to Sukut Construction, Inc. for the
construction of Golden Valley Road Phase I and High School site. This project is currently
in construction, with an anticipated completion date of June 2, 2001. Exhibit "A" contains a
APPROWEI A¢enda Item: Sm
GOLDEN VALLEY ROAD PHASE III, PROJECT NO. 53008
May 22, 2001— Page 2
summary of the expenditures to date, and estimated final costs, for this project. Exhibit `B"
contains an update of remaining project issues.
On April 26, 2001, City Council adopted a Resolution amending the Funding, Construction,
and Acquisition Agreement with Spirit Properties Ltd. This amendment allowed the City
to build Golden Valley Road Phase III jointly with the School District, providing a location
to place excess dirt from the school site, and facilitating the construction of Golden Valley
Road between Sierra Highway and Golden Triangle Road.
The Golden Valley Road Phase III project will include grading of Golden Valley Road from
future Via Princessa to Redview Drive, sewer construction for the school site, storm drain
construction, and paving of Golden Valley Road from Sierra Highway to Redview Drive.
Total project costs are estimated to be $8.36 million as follows:
PHASE III COSTS
City School
Estimated Soft Costs (Design/Administration/Inspection)* $ 506,548 $ 494,098
Estimated Construction Costs* $ 4,595,898 $ 1,996,875
City Contingency (15 percent) $ 765,367 $ 0
School Contingency (to be determined) $ 0 $ 0
TOTAL
$ 5,867,813 $ 2,490,973
*Estimate of share pending agreement between the City of Santa Clarita and the
Santa Clarita Valley Facilities Foundation.
PHASE III REVENUES
Twelve -Acre site
$ 2,300,000
B&T Fees from Santa Clarita Business Park
$ 1,188,000
Construction work deferred from GVR Phase I
$ 1,326,000
(to facilitate sewer construction to the school site)
Golden Valley Road Interim Improvement Project
$ 1,054,000
The opening of construction bids for Golden Valley Road Phase III is scheduled for
June 19, 2001. Staff will return to City Council for award of contract to the low bidder on
July 10, 2001, and construction is anticipated to begin in late July 2001.
GOLDEN VALLEY ROAD PHASE III, PROJECT NO. S3008
May 22, 2001— Page 3
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
This project includes various street improvements, which will be the City's responsibility to
maintain in the future. The costs for many of the improvements are for eligible bridge and
major thoroughfare expenditures.
Exhibit "A" — Golden Valley Road Phase I — Summary of Costs
Exhibit `B" — City Interoffice Memorandum dated May 3, 2001
Exhibit "C" — Location Map
Amended Agreements (available in City Clerk's Reading File)
Plans and Specifications (available in the City Clerk's Reading File)
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EXHIBIT A
Golden Valley Road Phase I and High School Site
Spent to Date
Soft Costs (Design/Admin/Inspection)
Construction Costs
Estimated Remaining to Complete
TOTAL
Project Costs
Ci_yt
$11,261,859
$3,644,151
$7,617,708
To be determined
To be determined
School
$10,259,210
$2,486,526
$7,772,684
To be determined
To be determined
I
EXHIBIT "B"
CITY OF SANTA CLARITA
INTEROFFICE MEMORANDUM
TO: Kerry Breyer, Associate Engineer
Evan Aldrich, Project Manager
John Spalione, Resident Engineer
Donna Carpenter, WRA Engineering
Jim Frankian, R.T. Frankian & Associates
Jim Gortikov, Gortikov Enterprises, Inc.
Mike Otavka, Director of Facilities, William S. Hart Union School District
FROM: Robert Newman, City Engineer,;+
DATE: May 3, 2001
SUBJECT: Golden Valley Road Update
Phase I/High School Site and Phase III
The following is an updated list of pending issues relating to our joint project for your
information and follow up. An agreement between the City and Santa Clarita Business Park
(SCBP) will allow the City to construct Phase 3 of Golden Valley Road from the northern limits
of Phase 1 to Redview Drive, addressing the additional dirt we have remaining on the school site.
As of this update, the remaining cut on site is 760,000 cubic yards. We have moved
approximately 8.0 million cubic yards of dirt to date.
As of April 6, SCBP has full funding for the first portion of their project, with a tentative start in
June 2001. One of the terms contained within the proposed agreement with SCBP addresses the
dirt issue from Phase I, allowing the material to be used for the construction of Phase 3. We are
currently developing a bid package to advertise Phase 3 and will be going to City Council for
approval to go to bid on May 22, 2001
If you have any updates or questions, please let me know.
UPDATE AS OF THURSDAY, May 3, 2001
PHASE I CONSTRUCTION
ITEM STATUS/ ISSUE I WHO?
PENDING
Dirt Quantities
The project team has reviewed preliminary final
Project Team
pay quantities for the project. We have a meeting
on either May 11 or May 18 to review the
preliminary pay quantities with Sukut.
Golden Valley Road Phase I/High School Site
Pending/Outstanding Issues Update
Page 2 of 6
ITEM
STATUS / ISSUE
WHO?
Dronsky Property
Pending. City cost for acquisition may reduce
Jim Gortikov/
Transfer to School
District B&T credit. City has fmal judgment and
Robert
District from City
property can be granted to District, pending
bid specifications are being prepared.
Council action.
Bidding Period
Evaluation of Potential
The only remaining issues with Sukut that remain
City Project
Claim Issue with Sukut
unresolved relate to extended overhead, SWPPPs,
Team
Ongoing working group. Meets as needed.
erosion control, and dust control. These issues
Committee/Project
are due to the delays for Q1sB, revised work plan
Team Meetings
for the RUA, and rain days after the contract
GVR / Sierra Highway
Caltrans approval pending. Meeting w/Caltrans,
period.
Intersection (Median
Right -of -Way for
See separate section for right-of-way
WRA/City
Phase
ATE
Signal)
As the City / Foundation / District is going forward with construction of GVR Phase III, the
pending issues have been added to this report.
PHASE III
ITEM STATUS / ISSUE WHO?
PENDING
Bid Package
The plans for grading & street improvements
John Spalione/
have been obtained from Sikand that were
Kerry
previously prepared for Spirit Construction. The
bid specifications are being prepared.
Bidding Period
Going to City Council May 22, 2001 for
Kerry /
authorization to advertise for bid.
Frank Oviedo
Cost Control/Savings
Ongoing working group. Meets as needed.
Jim Gortikov/
Committee/Project
Robert
Team Meetings
GVR / Sierra Highway
Caltrans approval pending. Meeting w/Caltrans,
WRA
Intersection (Median
City staff& WRA held 4/3/01 to review Caltrans'
Engineering/
Modifications &
third plan check review comments, at which
ATE
Signal)
much progress was made. The plans and revised
Fact Sheet will be formally resubmitted to
Caltrans by mid-May.
Golden Valley Road Phase I/High School Site
Pending/Outstanding Issues Update
Page 3 of 6
ITEM
STATUS / ISSUE
WHO?
Agreements (between
The existing agreements are being amended to
Robert/
City/Foundation &
include the new scope of work.
Jim Gortikov
District/City
Sewer
The plans are approved from the school collector
Jim Gortikov
road to C Street.
The approval of plans for C Street to Redview are
pending. Porta Bella is not processing the plans
currently, but they have only been checked once
by the City. Contact with Porta Bella is needed to
secure the plans and process them for approval.
Sikand is preparing proposal to complete this
work and upgrade the existing lines.
The sewer will be bid as part of the bid package
for Phase 3.
Foundation
The Foundation funding for the project will have
Jim Gortikov/
Contribution
to be agreed to prior to City Council Award
Robert
Budget/Funding
The City Council will consider the budget for the
Kerry/John
project upon bid award. On 4/26/01, City
Spalione
Council approved SCBP paying their B&T fees in
advance, and the amount of the B&T fees.
Construction Schedule
Construction targeted to begin mid-July 2001,
Project Team
provided all the approvals are in place.
Cost Share
The cost share for Phase III was forwarded to the
Robert/
Foundation on 5/4/01.
Jim Gortikov
Below are the pending right-of-way issues for GVR Phase 1.
ITEM STATUS / ISSUE WHO?
RIGHT-OF-WAY
Right -of -Way for
Pending
Robert
Golden Valley Road
from Porta Bella
Golden Valley Road Phase I/High School Site
Pending/Outstanding Issues Update
Page 4 of 6
ITEM
STATUS / ISSUE
WHO?
Easement for L.A.
Easements have been reviewed and approved by
WRA/John
County Flood for
City. Signatures are needed on easement
Spalione
Storm Drain
documents by: (1) City, (2) Foundation and
subject to a public input waiting period. This
(3) Veluzats. Awaiting final resolution of
period has passed and the exemption is final.
pending condemnation.
GVR Right -of -Way for
City surveyor has legal descriptions and is
Jim Gortikov/
City from Foundation
reviewing second check comments.
WRA
Engineering
Subordination of Gas
City surveyor is reviewing legal descriptions
District/
Line in Golden Valley
prepared by Gas Company.
Foundation/
Road
WRA
Right -of -Way for L.A.
City surveyor has legal descriptions and is
WRA
City
reviewing second check comments.
Engineering
Permanent Agreement
Tiffany Israel, BAWG prepared draft of final
District/
with Sikand Property
agreement. Waiting for Wendy Wiles to review
Foundation
prior to sending to Sikand.
Veluzat Right -of -Way
City surveyor has legal descriptions and isWRA/City
reviewing second check comments.
The following items have been completed as of the last update report.
ITEM I STATUS / ISSUE WHO?
COMPLETED ITEMS FROM LAST UPDATE
CIAC Tax and Gas
Final ruling from IRS verbally received by Tim
District
Line
Pearce of Gas Co. exempting excise tax. District
received letter from IRS stating exemption was
subject to a public input waiting period. This
period has passed and the exemption is final.
(District provided City with a copy of the letter).
Complete
Golden Valley Road Phase I/High School Site
Pending/Outstanding Issues Update
Page 5 of 6
The following items will be addressed by the Foundation/School District with future phases of
work:
ITEM I STATUS / ISSUE WHO?
FUTURE PHASES
School Utility Services
Pending. Pac Bell plans have been submitted to
the City and a permit has been issued for the
Jim Gortikov
work. Doug Apple has been awarded the utility
coordination contract. Utility costs and plans are
pending. A utility coordination meeting was held
at the site on 10/31/00. Future utility construction
will not impact current construction project.
Collector Road
Pending — Design for connection to
District/
Ruether/possible funding/credit with the B&T
WRA
District. WRA Engineering will advise when
Engineering
improvement plans are to be submitted to City for
review. No direction from Foundation has been
provided at this time.
Median Construction &
Pending. WRA Engineering will advise when
District/
Landscaping on Golden
improvement plans will be submitted. No
Foundation/
Valley Road by
direction from Foundation has been provided at
WRA
Foundation/ District
this time.
Engineering
Street Improvements:
Pending. No direction from Foundation has been
District/
Street Lights,
provided at this time.
Foundation/
Sidewalk, Curb &
WRA
Gutter on Golden
Engineering
Valley Road
Permanent
Pending. Will be done with future school project.
District
Landscaping of School
Slopes
Route to School
What will the route to school for pedestrians be
District
upon opening? How will District address?
Fish & Game 1601 —
District will handle/City to pay 50%.
Mike Otavka
Five -Year Maintenance
Ongoing Coordination
A meeting was held on 5/12/00 to discuss
District/City
Issues
ongoing efforts with Fred Good, Donna
Carpenter, Michael Otavka and Robert Newman.
A follow-up meeting needs to be scheduled.
Golden Valley Road Phase I/High School Site
Pending/Outstanding Issues Update
Page 6 of 6
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cc: George A. Caravalho, City Manager
Robert Lee, Superintendent, William S. Hart School District
Steve Stark, Director of Administrative Services
Anthony J. Nisich, Director of Transportation & Engineering Services
Richard Patterson, SCV Facilities Foundation (fax)
Robert Wagenaar, SCV Facilities Foundation
Lorna Baril, William S. Hart School District
GOLDEN VALLEY ROAD
PHASE II AND PHASE III
Golden
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T.T. 51599
Porta Bella
LEGEND
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Building Sites in Tract
TR. 42670-01
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DRAFT
FIRST AMENDMENT
TO
FUNDING AGREEMENT
This First Amendment to Funding Agreement (this "Amendment") is made and
entered into on May , 2001, by and between City of Santa Clarita, a California
general law municipal corporation ("City"), and Santa Clarita Valley Facilities
Foundation, a California non-profit public benefit corporation ("Foundation"). City and
Foundation shall be collectively referred to herein as the "Parties" or individually as a
"Tarty".
RECITALS
A. The Parties previously entered into that certain Funding Agreement dated
February , 2000 ("Funding Agreement"), a copy of which is attached hereto as Exhibit
"A". Section 21. of the Funding Agreement provides for amendment thereto by written
agreement of the Parties.
B. The Parties anticipate that the scope of work as specified in the Funding
Agreement will be completed within two (2) or three (3) months, excluding completion of
the road, including paving, and some of the drainage facilities for the Road Component
and the Foundation Component, which the Parties intend to be completed in part pursuant
to the terms of this Amendment.
C. The purpose of this Amendment is to provide for the funding of the
administration and cost sharing between the Parties for Phase III of the Golden Valley
Road construction ("Phase IIT"). Phase III has two primary components, which are: (i)
road -related grading, paving and drainage, for which the City is responsible ("Road
Component"); and (ii) construction and installation of sewer facilities along and beneath
Golden Valley Road, for which the Foundation is responsible ("Sewer Component"), as
more particularly described in the attached Exhibit "B" and the documents incorporated
therein.
D. Except as expressly modified by the terms hereinafter provided, the Parties
intend that the terms and conditions of the Funding Agreement shall remain in full force
and effect with respect to funding of the administration and cost sharing of Phase III.
NOW, THEREFORE, the Parties further agree as follows:
1. Recitals. Recitals A. through D. above are incorporated herein and made
a part of this Agreement.
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2. Schedule of Perfomumce. City agrees to: (i) initiate and pursue to
completion at the earliest practicable date its standard public works bidding process
consistent with applicable law to award a public works contract ("Phase III Contract");
and (ii) administer the performance of such Phase III Contract to complete Phase III as
described on Exhibit "B". The proposed schedule ("Schedule of Performance") for the
completion of Phase III shall be as set forth on the attached Exhibit "C". City agrees to
require all contractors to designate Foundation and William S. Hart Union High School
District, a California public school district ("District"), as third -party beneficiaries and
require that Foundation and District be indemnified by all contractors and named as
co -insureds in all Phase III Contracts awarded by City relative to Phase III. Copies of all
insurance certificates shall be provided to Foundation and District. The proposed
Schedule of Performance may be revised by the Parties for including, but not limited to,
the following reasons: severe inclement weather, geology substantively different from that
disclosed at bid and award of Phase III Contracts relative to Phase III, as well as
differences from the Phase III Contract Documents, as herein defined, as to environmental
sampling, testing change orders for extra work, as well as other unforseen conditions.
3. Review of SpecificadonslBid Documents. Foundation shall have the right
to review, make comment upon, request changes, and approve or disapprove the public
bid documents, plans and specifications ("Phase III Contract Documents") prepared by
City for Phase III during the bid process through time of award. City will make available
to Foundation the Phase III Contract Documents which shall be considered and approved
prior to ZO(31' : If changes or revisions are requested by Foundation, the
Phase III Contract Documents shall be revised by City. If Foundation fails to respond
reaardin¢ consideration and approval of the Phase III Contract Documents prior to
200, they shall be deemed approved by Foundation.
4. Cost Estimate.
A. The Parties have agreed upon an initial cost estimate for Phase III
("Phase III Cost Estimate"), a copy of which is attached hereto as Exhibit "D" and
incorporated herein. The Phase III Cost Estimate allocates total estimated costs to
Foundation for specific tasks relating to the Sewer Component and to City for specific
tasks relating to the Road Component, including all anticipated construction costs and all
associated expenses for construction management, permit fees, consulting services, field
surveys and soils laboratory testing, which are specific and allocated to City or Foundation
on a task -specific basis, as much as possible. Where not task specific, cost estimates have
been allocated pro rata on the basis of the ratio of the total cost of the Road Component
or the total cost of the Sewer Component to the total cost of Phase III.
B. The Parties recognize that the Phase III Cost Estimate may require
further revisions, as additional information is acquired once the bidding and award process
has been completed and actual costs are incurred.
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5. Review of Bids Submitted
A. Foundation shall have the right to review and select alternatives for
bids which are received as related to the Sewer Component, and approve bids for the
Sewer Component submitted by bidders in response to the notice inviting bids. City will
make available to Foundation said bids and related documents submitted by bidders, and
City staffs recommendation regarding the lowest responsive and/or responsible bidder,
which shall be considered and, subject to the provisions hereof, approved by Foundation
within six (6) working days from the date of receipt by Foundation. If Foundation fails
to respond regarding consideration and approval of the bids within said six (6) working
day period, they shall be deemed approved by Foundation. Prior to award of the
construction contract for Phase III by City, Foundation shall have the right to reasonably
determine that the recommended lowest responsive and/or responsible bid for the Sewer
Component is greater, as determined by Foundation in its sole discretion, than the Phase
IIF Cost Estimate as defined above, and to reasonably determine that the Sewer Component
is infeasible, in which event City shall reject all bids.
B. Receipt by the District of state funding for acquisition of the Golden
Valley High School Site, interim or permanent :funding, to the extent necessary from. the
District proposed financing, proposed to be accomplished prior to , 2001;
is also a condition precedent to District concurring in the award of Phase III Contract
Documents by City. In the event the District's interim financing is not completed, or
either, state funding or other sufficient funds are not available for the District at the later
of 2001 or the proposed award of the bid for the Sewer Component, to
fund the herein provided obligations of the Foundation, this Amendment may be
terminated by Foundation. In such event, Foundation shall reimburse, on a pro rata basis,
Foundation's share of the reasonable expenses incurred as a result of City's preparation
of the Phase III Contract Documents for the Sewer Component. The pro rata amount shall
be based on the Phase III Cost Estimate, as hereinabove defined, for the Sewer Component
of Phase 111.
6. Allocation of Costs.
A. Foundation and City agree to pay for the total actual cost of their
respective portions of Phase M. The Parties understand that there is no "cap" on the total
financial obligation of the City and Foundation under this Amendment and that the total
actual cost of Phase III may exceed the Phase III Cost Estimate, as adjusted. The Parties
acknowledge that they share as herein provided in the risk incurred in any such cost, if
any. In the event a particular added cost can be attributed to the Sewer Component, the
Parties agree that such cost shall be borne by the Foundation. In the event a particular
added cost can be attributed to the Road Component, the Parties agree such cost shall be
borne by City.
B. To the extent a particular added cost cannot be reasonably and
substantially attributed to a Sewer Component or to a Road Component, the cost shall be
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allocated pro rata as to the Sewer Component cost or Road Component cost to the cost of
Phase III.
C. The initial allocation of the Phase III Cost Estimate shall allow Phase
III to continue without delay. The Parties agree to reasonably negotiate resolution of any
cost allocation disputes on an on-going basis and as Phase III is completed. To the extent
no resolution can be reached, the Parties agree to submit the cost allocation dispute to a
neutral, mutually -agreeable third -party mediator for non-binding mediation.
7. Cash Deposit and Subsequent Funding. To provide for payments by
Foundation in satisfaction of its obligations under this Amendment, and subject to the
provisions of Section 5, Foundation agrees to deposit with City, prior to City's award of
the construction contract, for Phase III, a cash deposit in an amount equal to
percent ( ) of the lowest responsible bid amount for the
Sewer Component as a good faith deposit against the construction costs for the Sewer
Component. This amount shall be held and disbursed by City in accordance with the
terms of the Funding Agreement, as modified by the terms of this Amendment. The
Parties shall agree upon a schedule for all remaining transfers of funds from Foundation
to City to fund the Sewer Component in advance of costs incurred for those components.
City will not issue a notice to proceed to the contractors until the cash deposit is received
from Foundation. In no event shall City advance funds on behalf of Foundation for
payment of the Contractor.
8. Use of Cash Deposits on Hand. Foundation previously paid certain monies
to City pursuant to the Funding Agreement, which have not been expended, with respect
to the Project as specified in the Funding Agreement. To the extent that any such monies
paid by Foundation with respect to the Foundation Component of the Project have-not
been expended by City, they shall be credited toward the amount of cash deposit required
to be paid by Foundation to City, pursuant to Paragraph 7. above, and shall be governed
pursuant to the terms of the Funding Agreement as herein amended.
9. Application and Effect of Remaining Funding Agreement Term. All other
terms and conditions of the Funding Agreement not expressly modified pursuant to this
Amendment and which governed the relationships and responsibilities of the Parties with
respect to the Foundation Component and the Road Component of the Project shall
continue to apply to Phase III, including, but not limited to, the following Sections as
specified in the Funding Agreement: (i) Section 7, Change Orders; (ii) Section 8,
Indemnification; (iii) Section 10, Holding of Deposits.
10. Effective Date. The effective date of this Amendment shall be
2001-:
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IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be
executed.
CITY OF SANTA CLARITA
By:
SANTA CLARITA FACILITIES FOUNDATION
By:
APPROVED AS TO FORM.•
CITY ATTORNEY
APPROVED AS TO FORM
FOUNDATION COUNSEL
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