HomeMy WebLinkAboutAgenda Statement 1985/08/20 Item 13 COUNCIL AGENDA STATEMENT
Item 13
Meeting Date 8/20/85
ITEM TITLE: Resolution / / 3 Approving Agreement relinquishing
Amended Lien Agreement for Construction of Storm Drain,
approving refund of excess deposit to the Price Company and
authorizing the Mayor to execute the Agreement
SUBMITTED BY: Director of Public Works/City Engineer
REVIEWED BY: City Manager (4/5ths Vote: Yes No X )
On October 5, 1982, the City Council by Resolution No. 11028 approved an
amended lien agreement between the City and Edmund Gann, the Price Company and
H.S.P. Holding Company to secure the construction of a storm drain.
The storm drain has now been installed and the Lien Agreement is no longer
necessary. Also, to construct the storm drain, the Price Company deposited
monies in excess of their share of the project's construction cost. The City
Council , during the FY 85-86 budget hearings, approved a C. I.P. budget request
to refund the Price Company the funds which they deposited in excess of their
responsibility ($81 ,549.48).
This agreement will , therefore, relinquish the Amended Lien Agreement, permit
staff to refund the Price Company their excess deposit and provide a record of
project completion and cost participation.
RECOMMENDATION: That Council approve this agreement and authorize the Mayor
to sign.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The construction of the storm drain system serving the Price Club area of the
City was accomplished as a joint project between the City and the Price
Company. Its completion required considerable cooperation and the commitment
of funds in excess of the original estimated cost to both parties.
The project was developed as a joint effort when the Price Bazaar was built in
Chula Vista. Due to a critical project schedule, the Bazaar was opened prior
to the design and construction of the required drainage facilities. Thus, it
became necessary to obtain a lien agreement from the Price Company to
guarantee its participation in the cost of the drainage facilities. The lien
agreement was approved on the basis of a total project construction cost of
$300,000. The City agreed to pay the first $150,000 and the Price Company
agreed to pick up the construction costs over $150,000.
by t":3 City <;'_;.,.'ii of
Chula Vila, Caii��rnia
Dated 7 -��
Page 2, Item 13
Meeting Date 8/20/85
The receipt of bids determined that the project was going to cost over
$400,000 which was a significant increase over the original estimate of
$300,000.
The Price Company agreed to a 50/50 split of the construction cost and to
deposit $290,000 with the City so that there were sufficient funds to award
the contract. For its part, the City agreed to refund the Price Company all
funds in excess of their 50% share of the construction cost.
The final project construction cost has been determined and it is now
appropriate to refund the Price Club $81 ,549.48 (see attached cost analysis).
Sufficient funds to cover the refund were approved by the City Council in the
FY 85-86 Capital Improvement Program budget.
The agreement now proposed by staff will authorize the relinquishment of the
lien against the Price Company property, the refund of the Price Company's
excess contribution and a record of the project's cost participation.
FISCAL IMPACT: The City will refund $81 ,549.48 to the Price Company
deposited in excess of their proportionate share of the project' s construction
cost. There are sufficient funds in Account 634-6340-BG124 to cover this
refund.
RS:n r/
WPC 1593E
Form No. F-229
12/73
CERTIFICATE OF CITY/DIRECTOR OF FINANCE
Certification of Unappropriated Balance
I HEREBY CERTIFY that the money required for the
appropriation of funds for the purpose set forth in the attached
resolution is available in the Treasury, or is anticipated to
come into the Treasury, and is otherwise unappropriated.
Amount $ Fund
Purpose
Bidder
Director of Finance
The City of Chula Vista
Date By
Certification of Unencumbered Balance
I HEREBY CERTIFY that the indebtedness and obligation
to be incurred by the contract or agreement authorized by the
attached resolution can be incurred without the violation of any
of the provisions of the Charter of the City of Chula Vista, or
the Constitution or the laws of the State of California, that
sufficient monies have been appropriated for the purpose of said
contract, that sufficient monies to meet the obligations of the
contract are actually in the Treasury, or are anticipated to come
into the Treasury to the credit of the appropriation from which
the same are to be drawn, and that said monies now actually in
the Treasury, together with the monies anticipated to come into
the Treasury, to the credit of said appropriation are otherwise
unencumbered.
Amount Not to Exceed $ 81 ,549.48
/ R
f1
•. /. . .e. .�. J At
Director of Finance
The City of Chula Vista
Date 8/20/85 By Public Works/City Engineer
Fund 634 Dept./Activity 6340-BG124
Purpose Agreement for Construction of Storm Drain
Bidder The r Price Club
0'" 857^11- Reg.. Certificate No. 5