HomeMy WebLinkAboutAgenda Statement 1985/07/23 Item 9a-b COUNCIL AGENDA STATEMENT
Item 9
Meeting Date 7/23/85
ITEM TITLE: a. Resolution Y/01-/ft' 7 Approving a revised agreement for the
extension of a natural gas line along Otay Valley Road and
Maxwell Road within the Otay Valley Road Redevelopment Project
Area
b. Resolution / / 0 F Approving a revised agreement for the
undergrounding of utility lines along Maxwell Road
SUBMITTED BY: Community Development DirectoArvilL the Vote: Yes No X )
mla
REVIEWED BY: City Manager '16
At the meeting of March 19, 1985, the City Council approved a contract with
San Diego Gas & Electric Company for the extension of a gas line along Otay
Valley Road and Maxwell Road to service new subdivisions in that vicinity.
The Council approved the payment of $35,000 to SDG&E as a deposit for the
extension of the line with the understanding that, as new users tied into the
line and paid deposits, the City would be reimbursed. Recently, development
plans for approximately 17 acres adjacent to Maxwell Road have changed and no
longer require the extension of gas service. As a result, SDG&E has requested
that the City approve a revised agreement which reduces the amount of gas line
to be installed and reimburses $5,484 to the City.
SDG&E is also requesting approval of a revised contract for the undergrounding
of utility lines along Maxwell Road due to changes in the design of the
project. There are no changes in the project cost.
RECOMMENDATION: That the Council approve the resolutions and enter into
agreements with SDG&E for the extension of a natural gas line along Otay
Valley Road and Maxwell Road within the Otay Valley Road Redevelopment Project
Area for the sum of $29,094, and for the undergrounding of utility lines along
Maxwell Road at no change in the contract amount.
DISCUSSION:
The original request to extend the natural gas line eastward along Otay Valley
Road and northward along Maxwell Road was promulgated by developers of the
Otay Industrial Park (Sammis Properties) in order to service new users in that
subdivision. However, no specific users were identified at that time.
Recently, SDG&E has opened an escrow for the purchase and development of
approximately 17 acres comprising the northerly half of the Otay Valley
Industrial Park. Escrow is due to close by July 17. Since SDG&E will not
require natural gas, plans for the new line have been revised to omit the
Page 2, Item 9
`-- Meeting Date 7/23/85
northerly section of Maxwell Road and Research Court (a new road planned to
service the SDG&E site). Elimination of this section of gas line will result
in a reduction of the contract
SDG&E operating procedures require the execution of a new agreement to cover
the revised work plan and new
n� with athe amount.
understanding have the City that will the
City execute a new agreement
the difference between tk within n new 30 days contract
of receiving and
the new$s5
previously deposited for this signed
agreements (attached letter from SDG&E dated July 9, 1985) .
Also enclosed are revised contracts for the undergrounding of utility lines
along Maxwell Road. New got galong Research Court There areino
of f this project concerning under
grounding 9 roundi g
changes in the cost of Maxwell .project which is to be shared by
This project was approved in March t1985 Otay
Industrial Park and W. F.
FINANCIAL IMPACT:
The City previously entered into a contract with SDG&E for the extension of
natural gas facilities for the sum of $35,000. Execution of the new contract
will result in a savings of $5,484 which will be reimbursed to the Community
Development Block Grant Program.
The City also previously entered into $95,33prac There i se no hange n�nn thi s
utility lines along Maxwell Road
contract amount.
These contracts require Council action since they are funded with CDBG funds.
WPC 1655H
by the City +1 of
Chula
Dated
7-.2 3 i
COUNCIL AGENDA STATEMENT �-
Item 9
Meeting Date 7/23/85
ITEM TITLE: a. Resolution /.,2/z,7 Approving a revised agreement for the
extension of a natural gas line along Otay Valley Road and
Maxwell Road within the Otay Valley Road Redevelopment Project
Area
b. Resolution /2. /D /Approving a revised agreement for the
undergrounding of utility lines along Maxwell Road
SUBMITTED BY: Community Development Directo 5ths Vote: Yes No X )
,''e
REVIEWED BY: City Manager ft -h
At the meeting of March 19, 1985, the City Council approved a contract with
San Diego Gas & Electric Company for the extension of a gas line along Otay
Valley Road and Maxwell Road to service new subdivisions in that vicinity.
The Council approved the payment of $35,000 to SDG&E as a deposit for the
extension of the line with the understanding that, as new users tied into the
line and paid deposits, the City would be reimbursed. Recently, development
plans for approximately 17 acres adjacent to Maxwell Road have changed and no
longer require the extension of gas service. As a result, SDG&E has requested
that the City approve a revised agreement which reduces the amount of gas line
to be installed and reimburses $5,484 to the City.
SDG&E is also requesting approval of a revised contract for the undergrounding
of utility lines along Maxwell Road due to changes in the design of the
project. There are no changes in the project cost.
RECOMMENDATION: That the Council approve the resolutions and enter into
agreements with SDG&E for the extension of a natural gas line along Otay
Valley Road and Maxwell Road within the Otay Valley Road Redevelopment Project
Area for the sum of $29,094, and for the undergrounding of utility lines along
Maxwell Road at no change in the contract amount.
DISCUSSION:
The original request to extend the natural gas line eastward along Otay Valley
Road and northward along Maxwell Road was promulgated by developers of the
Otay Industrial Park (Sammis Properties) in order to service new users in that
subdivision. However, no specific users were identified at that time.
Recently, SDG&E has opened an escrow for the purchase and development of
approximately 17 acres comprising the northerly half of the Otay Valley
Industrial Park. Escrow is due to close by July 17. Since SDG&E will not
require natural gas, plans for the new line have been revised to omit the
Page 2, Item g
Meeting Date 7/23/$5
northerly section of Maxwell Road and Research Court (a new road planned to
service the SDG&E site). Elimination of this section of gas line will result
in a reduction of the contract amount by $5,484.
SDG&E operating procedures require the execution of a new agreement to cover
the revised work plan and new contract amount. They have requested that the
City execute a new agreement with the understanding that the City will be
reimbursed the difference between the new contract amount and the $35,000
previously deposited for this work within 30 days of receiving the new signed
agreements (attached letter from SDG&E dated July 9, 1985) .
Also enclosed are revised contracts for the undergrounding of utility lines
along Maxwell Road. New contracts are required due to changes in the design
of this project concerning undergrounding along Research Court. There are no
changes in the cost of this project which is to be shared by the Otay
Industrial Park and W. F. Maxwell . This project was approved in March 1985.
FINANCIAL IMPACT:
The City previously entered into a contract with SDG&E for the extension of
natural gas facilities for the sum of $35,000. Execution of the new contract
will result in a savings of $5,484 which will be reimbursed to the Community
Development Block Grant Program.
The City also previously entered into a contract for the undergrounding of
utility lines along Maxwell Road for $95,330. There is no change in this
contract amount.
These contracts require Council action since they are funded with CDBG funds.
WPC 1655H