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Home My WebLink About1994/09/20 Item 11 COUNCIL AGENDA STATEMENT ITEM TITLE: Item J I Meeting Date 09/20/94 Resolution ) 7~VrAuthorizing a Change Order with Granite Construction For Installation of Storm Drain Facilities in Otay Valley Road in Conjunction with Development of the Girard Financial Parcel on Otay Valley Road and appropriating funds therefore. SUBMITIED BY: Director of Public Works ~ REVIEWED BY: City Manager ~tl~0 (4/5ths Vote: Yes..x. NO-J Girard Financial owns a 3.3 acre site on Otay Valley Road. The road is currently being widened by Granite Construction Company under Assessment District 90-2. In order to develop the Girard property, certain storm drain improvements within the road right-of-way are required. It is in the best interest of all parties to have Granite Construction install the drainage improvements as part of their work on Otay Valley Road. Girard will reimburse the City the full cost of this work (letter agreement attached). RECOMMENDATION: That the City Council approve the resolution authorizing a change order with Granite Construction for installation of storm drain facilities in Otay Valley Road and appropriating funds from the developer's deposit. BOARD/COMMISSION RECOMMENDATION: Not applicable. DISCUSSION: Girard Financial Corporation owns a site at the northwest comer of Otay Valley Road and Maxwell Road comprising 3.3 acres. Approximately 1.4 acres was recently sold to Sweets Specialty, a chocolate manufacturer currently completing an industrial building on the site. Although there has been interest in the remaining two parcels comprising .9 acres each, no development is imminent. Girard is required to provide storm drain improvements adjacent to the site within the right-of-way of Otay Valley Road which is estimated to cost $64,475. The work cannot be completed at this time because of conflicts with an existing gas main which will be relocated as part of the Otay Valley Road Improvements. Granite is willing to undertake this work in conjunction with the Otay Valley Road work in order to avoid having another contractor working concurrently in the roadway and to allow better control of the work within the right-of-way. Girard will deposit 110% of the estimated cost for the work with the City so that there will be no additional expense for the assessment district (see attached letter). It is anticipated that the contractor will be working in the vicinity of the Girard site in approximately three months. Staff recommends that the City Council authorize the Director of Public Works to approve the requested change order conditioned upon receipt of funds from Girard Financial. FISCAL IMPACT: The storm drain work is estimated to cost $64,475. Additional cost for inspection and testing is estimated at $2,500. Girard Financial will deposit 110% of the funds required for this work with the City before the contractor is authorized to proceed. Attachments: _~ Exhibit 1 - Letter from Girard It SC~\...- ~-'q-""-~ ~O II" / /;/-2. filo_AO-Oro ~^ "i~il L.I .1\)11" \ I:LI~l' Drl',._ \l: ii" .~I H I ),'11 1 J,<).:" , (,\ ')212..' 1,[')II"',7'>!I(j :.;.:, i GIRARD FINANCIAL. Corporation August 3, 1994 AUG - 8 '"'" 51 ",-'1 I ~ Mr. Dennis Davies, Civil Engineer City of Chula Vista Engineering Department 276 Fourth Avenue Chula Vista, CA 91910 RE: GRANITE CONSTRUCTION COMPANY INSTALLATION OF STORM DRAIN [CHANGE ORDER 4/18/94] OTAY VALLEY ROAD, CHULA VISTA, CA Dear Mr. Davies: You are hereby authorized to finalize and execute a change order with Granite Construction Company for the jn~tallation of a storm drain in Otay Valley Road per revised plan ~heets 92~I62 to 164, 92-169, 170, 175, and 176, all dated March 2.3, 1994. It is understood that the change order will be in the amount of $64,475.00 with the elimination of all contingencies outlined in the 4/18/94 change order quotation except for some pot holing and soils testing during construction. We are agreeable to the above contingencies, provided they collectively may not exceed $2,500.00. To secure the above change order, Giran: Financial Corporation is enclosing a good faith deposit of $5,000.00 payable to the City of Chula Vista. Once the change order has been finalized under the above terms and conditions, Girard agrees to substitute a cash deposit for 110% of the change order and contingencies, with the understanding that the $5,000.00 deposit and improvement Bonds #1194570 and #119457] shall be immediately returned to Girard. After payment for the completion of the work contained within the above described change order, any excess remaining from the cash deposit shall be immediately y'eturned to Girard. I acknowledge and agree that the City shall not be responsible for any negligence or delays in connection with Granite Construction Company's performance of the change order work. Thank you for your assistance in finalizing this matter. Sincerely, ao~nsi!- ~ President/CEO 1/. ,;. RESOLUTION NO. /7&',/ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING A CHANGE ORDER WITH GRANITE CONSTRUCTION FOR INSTALLATION OF STORM DRAIN FACILITIES IN OTAY VALLEY ROAD IN CONJUNCTION WITH DEVELOPMENT OF THE GIRARD FINANCIAL PARCEL ON OTAY VALLEY ROAD, AND APPROPRIATING FUNDS THEREFOR WHEREAS, Girard Financial owns a 3.3 acre site on Otay Valley Road, which road is currently being widened by Granite Construction Company under Assessment District 90-2; and WHEREAS, in order to develop the Girard property, certain storm drain improvements within the road right-of-way are required; and WHEREAS , it is in the best interest of all parties to have Granite Construction install the drainage improvements as part of their work on Otay Valley Road; and WHEREAS, Girard will reimburse the city the full cost of this work as set forth in their letter agreement; ad WHEREAS, staff recommends that the City Council authorize the Director of Public Works to approve the requested change order in the estimated amount of $64,475. NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula vista does hereby authorize a Change Order with Granite Construction for installation of storm drain facilities in otay Valley Road in conjunction with development of the Girard Financial parcel on otay Valley Road. BE IT FURTHER RESOLVED that the Director of Public Works is hereby authorized to execute said Change Order on behalf of the city of Chula vista. BE IT FURTHER RESOLVED the the amount of $64,475 is hereby appropriated from the Developers Depo 't into P Account ST123. c:\rs\granite.co Bruce M. Attorney city Presented by John P. Lippitt, Director of Public Works 1/.3