HomeMy WebLinkAbout2010/04/13 Item 16
CITY COUNCIL
AGENDA STATEMENT
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
4/13/10, Item ~
PUBLIC HEARING TO CONSIDER WAIVING
IRREGULARITIES IN THE BID RECEIVED FOR THE "TRAFFIC
SIGNAL MODIFICATION AT THE INTERSECTION OF THIRD
AVENUE AND MONTGOMERY STREET, (TF331)" PER CITY
CHARTER SECTION 1009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING IRREGULARITIES, ACCEPTING
BIDS AND AWARDING THE CONTRACT FOR THE "TRAFFIC
SIGNAL MODIFICATION AT THE INTERSECTION OF THIRD
AVENUE AND MONTGOMERY STREET (TF331)" PROJECT TO
RAMONA PAVING AND CONSTRUCTION CORPORATION, IN
THE AMOUNT OF $263,493.90 AND AUTHORIZING THE
EXPENDITURE OF ALL AVAILABLE FUNDS IN THE PROJECT
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A REIMBURSEMENT AND LIEN
AGREEMENT FOR THIRD A VENUE AND MONTGOMERY
STREET IMPROVEMENTS L!
DIRECTOR OF PUBLIC WORKS ~~ m
ASSISTANT DIRECTOR OF ENGINEE~
CITY MANAGE~
ASSISTANT CIT~~NAGER ~
4/5THS VOTE: YES 0 NO ~
SUMMARY
The proposed Reimbursement and Lien Agreement for Third Avenue and Montgomery Street
Improvements ("Agreement"), is between the City of Chula Vista, a municipal corporation
("City"), and the Sanchez Family Limited Partnership ("Owner"). This Agreement establishes
provisions for the reimbursement by the Owner of costs incurred by the City for the construction
of public street improvements along the east side of Third Avenue, north and south of
Montgomery Street.
On February 17, 2010, the Director of Public Works received five (5) sealed bids for the "Traffic
Signal Modification at the Intersection of Third Avenue and Montgomery Street in the City of
Chula Vista, California (TF-330)" Project. The project is included in the Capital Improvement
Program (CIP) budget to replace existing traffic signal equipment and to install a new four-phase
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4/13/10, Item ((p
Page 2 of 5
traffic signal at this intersection. The proposed actions would waive a minor error and award the
contract to Ramona Paving and Construction Corporation.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed project for compliance with
the California Environmental Quality Act (CEQA) and has determined that the project qualifies
for a Class 2( c) categorical exemption pursuant to Section 15302 (Replacement or
Reconstruction of Existing Structures) of the State CEQA Guidelines. Thus, no further
environmental review is necessary.
RECOMMENDATION
Council conduct the public hearing and adopt the resolutions.
BOARDS/COMMISSION RECOMMENDA nON
Not applicable.
DISCUSSION
On January 8, 1981, the Owner entered into two Lien Contract Agreements to provide right-of-
way and public street improvements as a condition of approval for a Special Use Permit for the
expansion of a professional/commercial complex on properties located at the northeast and
southeast corners of Third Avenue and Montgomery Street.
The City's approved CIP includes a project to replace an outdated traffic signal system at Third
Avenue and Montgomery Street. During design, it was discovered that in 1981, the County of
San Diego had approved the deferral of public improvements along the east side of Third
Avenue, north and south of Montgomery Street. Staff determined that the construction of these
improvements were desirable in order to bring the intersection to current standards and to
improve operation of the intersection.
Staff then met with the owner, Dr. Sanchez, and informed him of the City's intent to move
forward with construction of the improvements, and presented the project's scope and cost.
Because the owner's obligation of the project costs under the 1981 Lien Contract Agreements is
estimated at $172,000, Dr. Sanchez requested that the cost of the street improvements be initially
borne by the City and repaid in annual installments. The proposed Reimbursement and Lien
Agreement would allow the City to proceed with construction of the street improvements,
remove the existing liens and establish new liens binding upon the property, and obligate the
owner to repay construction costs, plus interest, over a period of ten years through an annual
assessment on the owner's property tax bill.
The proposed Reimbursement and Lien Agreement is attached herewith as Exhibit A. Upon
execution by the City, the City will record the agreement.
The condition of the existing traffic signal system at the intersection of Third Avenue and
Montgomery Street is beyond repair and/or modification. Replacement of the traffic signal
system at this location will reduce City maintenance costs and improve traffic circulation and
intersection safety, as well as provide vehicle and Bicycle detection ("Improvements").
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4/13/10, Item I G.:,
Page 3 of 5
Under the American Recovery and Reinvestment Act (ARRA) of 2009, administered by the
Federal Government, a portion of the overall funding was allotted to highway intiastructure
improvements and maintenance. A portion of the State of California's share was distributed
through regional planning agencies, such as the San Diego Association of Governments
(SANDAG); SANDAG, in turn, set aside and distribut~d 40% of the monies to local agencies.
In order to avoid having to implement federal requirements on local projects and to simplify and
expedite the use and expenditure of ARRA funds to achieve economic stimulus, SANDAG chose
to use all received ARRA funds on a few large regional projects already subject to federal
requirements and to reallocate previously-appropriated TransNet funds in those projects to local
agencies.
The City of Chula Vista received $3.36 million of these reallocated TransNet funds (TransNet
ARRA) for use on highway infrastructure projects within the city. The funds received may only
be used on projects and programs previously approved under the Regional Transportation
Program (RTIP); Chula Vista's RTIP was amended by the City Council in May 2009. The
traffic signal repair and upgrade project and contract, which are the subjects of the proposed
action, are fully funded using these TransNet ARRA funds.
On February 17, 2010, the Director of Public Works received five (5) sealed bids. The following
table surnmarizes the bids received:
TOTAL
SUBMITTED
CONTRACTOR BID
1 Ramona Paving and Construction $263,493.90
to oration -Ramona, CA
2 H M S Construction Inc. - Vista, $283,211. 00
CA
3 Lekos Electric, Inc. - El Cajon, $297,335.00
CA
4 P T M General Engineering $299,299.00
Services, Inc. - Riverside, CA
5 HT A Engineering & Construction $304,795.00
Inc.-Baldwin Park, CA
None of the bidders submitted the "Letter Authorizing Capacity(ies) for Signature" with their bid
proposals. The "Letter of Authorizing Capacity(ies) for Signature" is used to identify who is
authorized to legally bind the contractor and to sign bid proposals, contract documents, change
orders, and other official communications between the contractor and the City. Ramona Paving
and Construction Corporation has subsequently provided documentation to satisfy this
requirement. Because all contractors made the same error in their bids, it is staff s opinion that it
would serve no public purpose to reject all bids and to re-bid the project since the low bid has
been made known to the other four bidders. Therefore, staff recommends that City Council
conduct the public hearing, waive the irregularities in the bids (as provided for in Section 1009
of the City Charter), and award the contract to to Ramona Paving and Construction Corporation.
The low bid submitted by Ramona Paving and Construction Corporation is below the Engineer's
estimate of $297,118 by $33,624, or approximately 11 %. The Contractor has provided current
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4/13/10, Item tb
Page 4 of 5
project references from whom they contracted within the past two years. Staff has verified the
references provided and has determined that the contractor has performed satisfactorily for those
references. The Contractor's License No. 795526 is current and active.
The proposed resolution would also authorize the Dire<;tor of public Works to approve change
orders over and above existing policy limits. Under City Council Policy No. 574-01, if an
individual change order causes the cumulative increase in change orders to exceed the Director's
authority ("Maximum Aggregate Increase in Change Orders"), then City Council approval is
required. The corresponding maximum aggregate contract increase that may be approved by the
Director of Public Works under Policy No. 574-01 is $28,445. Approval of tonight's resolution
would increase the Director of Public Works' authority to approve change orders, as necessary,
up to the contingency amount of $52,699, an increase of $24,254 over Policy No. 574-0l.
Increasing the contingency funds will allow staff to continue the project without delay should
unforeseen circumstances resulting in increased project costs arise during the course of
construction, as well as make adjustments to bid item quantities. Unforeseen conditions include
such items as utility conflicts, hazardous materials, unexpected underground conflicts, etc. If the
contingency funds are not used, then they will be returned to the project fund balance.
Disclosure Statement
Attachment 1 is a copy of the Contractor's Disclosure Statement.
Wage Statement
The source of funding for this project is TransNet ARRA Exchange and Traffic Signal Funds.
Contractors bidding this project are not required to pay prevailing wages to persons employed by
them for-the work under this project. Disadvantaged businesses were encouraged to bid by
sending "Notice to Contractors" to various trade publications.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has round no property holdings
within 500 feet of the boundaries of the property, which is the subject of this action.
CURRENT YEAR FISCAL IMPACT
A breakdown of the project construction costs is as follows:
FUNDS REQUIRED FOR CONSTRUCTION
A. Contract Amount $263,493.90
B. Contingencies (20%) $ 52,699.00
C. Staff Cost (Construction Inspection, Survey, Design) $ 39,850.00
TOTAL FUNDS REQUIRED FOR CONSTRUCTION $356,042.90
Sufficient funds are available in the TF331 project account to complete construction.
ON-GOING FISCAL IMPACT
Upon completion of the project, maintenance and operation costs for the traffic signal will be
decreased from current levels and the improvements will require only routine City street and
traffic signal maintenance.
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4/13/10, Item ~
Page 5 of 5
Under the Reimbursement Agreement with the Owner (Sanchez Family Partnership), ten annual
payments, including interest, will be paid to the City for the Owner's fair share of construction
costs. These funds will be deposited in the Traffic Signal Fund Account based upon the actual
bids received and distribution of traffic signal and street widening costs.
ATTACHMENTS
Attachment 1. Contractor's Disclosure Statement
Exhibit A. Reimbursement and Lien Agreement
Prepared by: Boushra Salem, Public Works-Engineering Department
J: \Engineer\A GENDA ICAS20 10\04-13-1 OlTF331 Contract Award CASrev.doc
16-5
ATTACHMENT I
TF-"33,\
~_._.
City of Chula Vista Disclosure Statement
put,uanUo Council Policy 101-01, prior to any action upon.,mattors that will roquiro discrotionary action
by tho Council, Planning Commission and all othor official bodios of tho City, a statomont of disclosure of
cortain ownorship or financial intorosts, paymonts, or campaign contributions for a City of Chula Vista
olection must bo filod. Tho following infOlmation must bo disclosod:
1. List tilO names of all porsons having a financial intorost in tbo proporty that is tho subject of tho
application or tho contract, o.g., ownor, applicant, contractor, subcontractor, matorial supplior.
I.J 1/1
. I
2. Jf any porson" idontified pursuant to (1) abovo is a corporation or partnorship, list tho namos of all
individuals witil a $2000 invostment in tho businoss (corporation/partnorship) entity.
N fA
,
3. If any porson" identified pursuant to (I) abovo is a non-profit organization or trust, list tho names
of any porson sorving as director of tho non-profit organization or as trustoo or boneficiary or
trustor of the trust.
i'J fA
,
4. Ploaso idontify ovory porson, including any agonts, omployoes, consultants, or indopondont
contractors you have assigned to repre.sent you before the City in this matter.
Al fA
,
Has any porson" associated witb this contract had any fmancial dealings with an official"'" of tilO
City ofCbu!a Vista as itrolates to tilis contract witbin tbe past 12 months? yos_No V
5.
tJ fA-
.
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16-6
If Yes, briefly describe the nature of the financial interest the official** may have in this contracL
6. Have you made a contribution of more than $250 within the past twelve (12) months to a current
member of the Chula Vista City Council? No LYes _ If yes, which Council member?
7. Have you provided more than $340 (or an item of equivalent value) to an official"" of the City
of Chula Vista in the past twelve (12) months? (This includes being a source ofincome, money to
retire a legal debt, gift, loan, etc.) Yes _ No L
If Yes, which official** and what \Vas the nature of item provided?
Date:
()..;( - I ftr I ()
-~
-
Signature of nEIactorl Applicant
-Ihl1/YJO.s 1-1. ThpaiFr
Print or type name of Contractorl Applicant
. Person is defined as: any individual, firm, co-partnership, joint venture, association, social
club, fraternal organization, corporation, estate.. trust, receiver, syndicate, any other county,
city, municipality, district, or other political subdivision, -or any other group or combination
acting as a unit. .
** Official includes, but is not Hmited to: Mayor, Council member, Planning Commissioner,
Member of a board, commission, or committee of the City, employee, or staff members.
18
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16-7
THE A TT ACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WI BE
FORMALLY SIGNED UPON APP B
T CITY C
Dated: .
REIMBURSEMENT AND LIEN AGREEMENT
FOR THIRD AVENUE AND
MONTGOMERY STREET
BETWEEN THE CITY OF CHULA VISTA AND
THE SANCHEZ F AMIL Y LIMITED PARTNERSHIP
16-8
c/~ (!kJ{
.
Recording Requested by and
Please Retzwn to:
/-
City Clerk
City of Chula Vista
P.O. Box 1087
Chula Vista, California 91912
. This Space for Recorder's Use Only.
-
-.-
..
APN(s): 623-142-39 & 623-201-55
C.V. File # 0710-35-TF-33I
REIMBURSEMENT AND LIEN AGREEMENT
FOR THIRD A VENUE AND MONTGOMERY
STREET IMPROVEMENTS
This Reimbursement and Lien Agreement for Third A venue and Montgomery Street
Improvements ["AGREEMENT"] dated -J'"4"""" 19 , ~& for reference purposes
only, and executed on the date on which the last party signs, is bet',\fegri the City of Chula Vista, a
municipal corporation ["CITY"], and the Sanchez Family Limited Partnership ["OWNER'l
CITY and OWNER may be referred to herein individually as "Party" and collectively as
"Parties". This AGREEMENT shall be for the reimbursement by OWNER of costs incurred by
CITY for the construction of certain public street improvements as described herein and pursuant
to the terms and conditions as set forth herein. AGREEMENT is entered into with reference to
the following recitals:
RECITALS
WHEREAS, on January 8, 1981, Carlos J. Sanchez and Anja Hovland de Sanchez,
predecessors-in-interest to OWNER, entered into an "Agreement for Improvements in Public
Right of Way Special Use Permit (Lien Contract)" ["LIEN CONTRACT A"], which agreement is
filed in the Office of the San Diego County Recorder as Document No.8 I -0 17026; and
WHEREAS, LIEN CONTRACT A required Carlos J. Sanchez and Anja Hovland de
Sanchez to provide right-of-way and/or public street improvements ["!1\IIPROVEMENTS"] as a
condition of approval for a Special Use Permit for the expansion of a professional/commercial
complex on property described in LIEN CONTRACT A, located generally at the Northeast
Comer of Third Avenue and Montgomery Street and further described as Parcel I of Exhibit "A";
and
WHEREAS, on January 8, 1981, Carlos 1. Sanchez and Anja Hovland de Sanchez,
predecessors-in-interest to OWNER, entered into an "Agreement for Improvements in Public
Page I of9
16-9
Right of Way Special Use Permit (Lien Contract)" ["LIEN CONTRACT B"], which agreement is
filed in the Office of the San Diego County Recorder as Document No. 81-017025; and
WHEREAS, LIEN CONTRACT B required Carlos J. Sanchez and Anja Hovland de
Sanchez to provide right-of-way andlor IMPROVEMENTS as a condition of approval for a
Special Use Permit for the expansion of a professional/commercial complex on property
described in LIEN CONTRACT B regarding property(ies), located generally at the Southeast
Comer of Third Avenue and Montgomery Street and further described as Parcel 2 of Exhibit "A";
and
WHEREAS, CITY desires to construct those IMPROVEMENTS which were the subject
of LIEN CONTRACT A and LIEN CONTRACT B, described herein, and shown in Chula Vista
Drawing Nos. 07063-01 through 07063-06 ["PLANS"], which PLANS are on file in the Office of
the City Engineer; and
WHEREAS, OWNER desires that said IMPROVEMENTS be constructed by CITY and
acknowledges OWNER's obligation to provide right-of-way and to construct that portion of the
public street improvements specified in LIEN CONTRACT A and LIEN CONTRACT B; and
WHEREAS, OWNER desires to finance the cost of the IMPROVEMENTS, which
OWNER is obligated to construct pursuant to LIEN CONTRACT A and LIEN CONTRACT B,
currently estimated at $172,000.00 (see attached Exhibit B) over a period often years through an
annual assessment on OWNER's property tax bill; and
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
PARTIES agree as set forth below. .
DEFINITIONS
"ACTUAL COSTS" means the final construction costs of the IMPROVEMENTS plus all City
staff costs for design, inspection survey planning, environmental and right of way as determined
by CITY at the completion of construction, which amount shall not exceed $172,000, the current
estimated costs.
"IMPROVEMENTS" means the construction of curb, gutter, sidewalk, pedestrian ramps, asphalt
concrete pavement, traffic signal improvements, utility relocation, removal of existing
improvements, and any associated CITY staff work (Le. administration, design, surveying,
construction staking, inspections, etc.) along tl1e &ontages of OWNER's properties, which are
generally located at the Northeast and Southeast Comers of Third A venue and Montgomery
Street
"PROPERTY" means tl1e southeast comer of Third Avenue and Montgomery Street property
(APN 623-201-55) known as 1635 Third Ave, Chula Vista, Ca 9191 I and the northeast comer of
Third Avenue and Montgomery Street property (APN 623-142-39), known as 298 Montgomery
Street, Chula Vista, CA 9191 l.
Page 2 of9
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TERMS AND CONDITIONS
1. Right-of-Way. OWNER agrees to provide and deliver, at no cost to the CITY, any and
all right-of-way requested by CITY to complete all Public Street Improvements in
accordance with PLANS and CITY design ana engineering standards within 30 days of
such request by CITY.
a. Free of Encumbrances. All right of way shall be free of encumbrances, except
those for utility purposes or those approved by the CITY.
2. Cost of IMPROVEMENTS. OWNER is obligated to pay the ACTUAL COSTS of the
IMPROVEMENTS, currently estimated at $ 172,000 ["ESTIMATED COSTS].
a. Security. In order to ensure that the Owner pays the ACTUAL COSTS, the City
shall obtain security in the fonn ofa lien on the PROPERTY in the amount of the
ESTIMATED COSTS.
i. Document as Lien. This document shall be filed with the County
Recorder and act as a Lien on the PROPERTY, and by signing this
AGREEMENT, the owner hereby acknowledges and approves of the
placement of the lien on the PROPERTY.
b. Payment Tenn. The ACTUAL COSTS shall be paid over a ten (I 0) year period.
c. Manner of Payment. Payment shall be made, and OWNER agrees that payment
shall be made, through annual assessments included in the property tax bill and
paid to the County of San Diego, beginning Fiscal Year 2010-2011 in the
amounts identified herein.
i. Authorization for Inclusion. By entering into this AGREEMENT,
OWNER authorizes the County of San Diego to include amounts payable
to the CITY under this AGREEMENT to OWNER'S property tax bills in
the amounts and manner described herein.
d. Amount of Annual Assessment. The annual assessment shall be calculated as
follows:
i. 1 ~ through 911. Year. The annual assessment for the first nine (9) years of
the ten (10) year payment term shall be the one-tenth (1/10) of the
ESTIMATED COSTS plus any accrued interest.
ii. 10'h Year. The final payment shall be the difference between the
ACTUAL COSTS and the ESTIMATED COSTS plus any accrued
interest.
e. Interest. Interest shall accrue on the unpaid balance of the ESTIMATED COSTS
at a rate of five (5) percent compounded annually.
f. Not to Exceed. The sum of all payments made under this AGREEMENT shall
not exceed the amount of the ESTIMATED COSTS plus associated interest.
Page3of9
16-11
3. Access During Cons1ruction. OWNER grants permission to CITY, its employees, agents
or contracts to enter upon any portion or portions of PROPERTY reasonably necessary
for the cons1ruction of IMPROVEMENTS and shall ensure CITY has reasonable access
to PROPERTY for the proper cons1ruction and"completion ofthe IMPROVEMENTS.
a. No Interference. CITY agrees to assure that OWNER shall have reasonable
access to OWNER's property at all times during construction of
IMPROVEMENTS.
4. Release of Existing Lien Contracts. Concurrent with the recording of this
AGREEMENT with the Office of the San Diego County Recorder, CITY shall release
LIEN CONTRACT A and LIEN CONTRACT B.
5. RecordinglRuns With Land. This AGREEMENT shall be recorded by the CITY in the
Official Records of the County of San Diego, Office of the County Recorder and shall
constitute a lien for the ACTUAL .COSTS of the IMPROVEMENTS binding upon and
running with the PROPERTY. If the OWNER sells or transfers the PROPERTY or any
portion of the PROPERTY in any manner, PROPERTY shall not be released ITom any of
the obligations, covenants, or conditions under this AGREEMENT relating to the
PROPERTY or portion of the PROPERTY or Project being acquired.
a. Recording Costs. OWNER is obligated to and shall pay all costs associated with
the recording of this AGREEMENT, and the release of existing liens referenced
in Sections 4 and 5 above.
6. Release of Lien. The burden of this Agreement shall be released ITom the title to the
PROPERTY upon the payment in full of the ACTUAL COSTS. Within ten (10) business
days following the payment of the ACTUAL COSTS, the CITY shall execute a "Release
of Lien", which shall be in standard form, approved by the City Attorney, releasing the
burden of this AGREEMENT from the title to the PROPERTY. Failure of the CITY to
execute the Release of Lien within ten (10) business days of payment shall not be deemed
a breach of this AGREEMENT, provided CITY makes its. best efforts to execute the
Release of Lien within a reasonable time thereafter.
7. Indemnification. OWNER agrees to defend, indemnifY, protect and hold CITY, its
officers, employees, agents, or volunteers harmless ITom any and against any and all
claims, demands, causes of action, liability, costs and expense (including, without
limitation, reasonable attorney's fees) or loss for bodily injury, death or property damage,
including thereto hazardous materials and property takings claims, arising out of or
related to this AGREEMENT and work done hereunder. Such indemnification and
agreement to hold harmless shall not extend to claims, demands, or causes of action
caused by the sole negligence or willful misconduct of the C[TY. This provision shaH
survive the termination of this AGREEMENT.
8. Failure to Pay. In the event that any assessment is not paid on or before the due date
established by the County Assessor's Office, the CITY shall have the right to foreclose
on the lien establish by this AGREEMENT as a mortgage and as provided for in law for
foreclosures of mortgages.
Page 4 of9
16-12
a. Foreclosure Fees. The amount of said lien shall include all fees associated with
the foreclosure process, including reasonable attorney's fees, which shall be
taxed as a cost in any suit for such foreclosure.
9. Notice. Unless otherwise provided in this AGREEMENT or by law, any and all notices
required or permitted by this AGREEMENT or by law to be served on or delivered to
either party shall be in writing and shall be deemed duly served, delivered and received
when personally delivered to the party to whom it is directed or, in lieu thereof, when
three (3) Days have elapsed following deposit in the United States mail, certified or
registered mail, return receipt requested, first-class postage prepaid, addressed to the
address indicated in this AGREEMENT. A party may change such address for the
purpose of this Paragraph by giving written notice of such change to the other party.
If to CITY:
City of Chula Vista
Public Work Engineering
276 Fourth Avenue
Chula Vista, CA 91910
Attn: City Engineer
If to Owner:
Mrs. Carlos J. Sanchez, M.D.
1635 Third Avenue, Suite J,
Chula Vista, CA 91911
cc: Michael A. Green, Esq.
Green & Green LLP
227 3rd Avenue
Chula Vista, California 91910
10. Waiver of Claims. Owner agrees and acknowledges that it is obligated to pay the
ACTUAL COSTS and WAIVES AND RELEASES the CITY from any and all claims
arising out of or related to this AGREEMENT, including the amount of the assessments
charged. .
I hereby expressly waive all rights under Section 1542 of the Civil Code of the State of
California, and under any and all similar laws of any jurisdiction. I am aware that said
Section 1542 of the Civil Code provides as follows:
"
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH TH E
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR
/~/9- )()
DATE
~
. WNER
Page 5 of9
16-13
11. Headings. All article headings are for convenience only and shaH not affect the
interpretation of this AGREEMENT,
12. Gender & Number. Whenever the context -'requires, the use herein of (i) the neuter
gender includes the masculine and the feminine genders and (ii) the singular number
includes the plural number.
13. Reference to Paragraphs. Each reference in this AGREEMENT to a section refers, unless
otherwise stated, to a section this AGREEMENT.
14. Incorporation of Recitals and Exhibits. All recitals herein and exhibits attached hereto
are incorporated into this AGREEMENT and are made a part hereof.
15. Covenants and Conditions. All provisions of this AGREEMENT expressed as either
covenants or conditions on the part of the CITY or OWNER, shan be deemed to be both
covenants and conditions.
16. Integration. This AGREEMENT and any exhibits or references incorporated into this
AGREEMENT fully express an understandings of the Parties concerning the matters
covered in this AGREEMENT. No change, alteration, or modification of the terms or
conditions of this AGREEMENT, and no verbal understanding of the Parties, their
officers, agents, or employees shall be valid unless made in the form of a written change
agreed to in writing by both Parties or an amendment to this AGREEMENT agreed to by
both Parties. All prior negotiations and agreements are merged into this AGREEMENT.
17. Severability. In the event that any phrase, clause, paragraph, section or other portion of
this AGREEMENT shan become illegal, nun or void, or against public policy, for any
reason, or shall be held by any courtof competent jurisdiction to be illegal, null or void,
against public policy, or otherwise unenforceable, the remaining portions of this
AGREEMENT shall not be affected and shall remain in force and effect to the fullest
extent permissible by law.
18. Drafting Ambiguities. The Parties agree that they are aware that they have the right to be
advised by counsel with respect to the negotiations, terms and conditions of this
AGREEMENT, and the decision of whether or not to seek advice of counsel with respect
to this AGREEMENT is a decision that is the sole responsibility of each Party. This
AGREEMENT shan not be construed in favor of or against either Party by reason of the
extent to which each Party participated in the drafting of the AGREEMENT.
19. Conflicts Between Terms. If an apparent conflict or inconsistency exists between the
main body of this AGREEMENT and any exhibits, the main body of this AGREEMENT
shall control. If a conflict exists between an applicable federal, state, or local law, rule,
regulation, order, or code and this AGREEMENT, the law, rule, regulation, order, or
code shall control. Varying degrees of stringency among the main body of this
AGREEMENT, the exhibits, and laws, rules, regulations, orders, or codes are not deemed
conflicts, and'the most stringent requirement shall control. Each Party shall notifY the
other immediately upon the identification of any apparent conflict or inconsistency
concerning this AGREEMENT.
Page 6 of9
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20. Compliance With Law. OWNER shall, at its sole cost and expense, comply with all the
requirements of municipal, state, and federal authorities now in effect or which may
hereafter be in effect related to this AGREEMENT.
21. Governing Law. This AGREEMENT shal~be construed in accordance with, and
governed by, the laws of the State of California. This AGREEMENT shall be deemed
made and entered into in San Diego County, California.
22. Administrative Claims Requirements and Procedures. No suit or arbitration shall be
brought arising out of this AGREEMENT, against the CITY unless a claim has first been
presented in writing and filed with the CITY and acted upon by the CITY in accordance
with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same
may from time to time be amended, the provisions of which are incorporated by this
reference as if fully set forth herein, and such policies and procedures used by the CITY
in the implementation of same. Upon request by CITY, OWNERS shall meet and confer
in good faith with CITY for the purpose of resolving any dispute over the terms of this
AGREEMENT.
23. Fees. In the event any action or proceeding shall be instituted in connection with this
AGREEMENT, including without limitation the enforcement of any indemnification
obligation contained herein, the losing Party shall pay to the prevailing Party a reasonable
sum for attorneys' fees and costs incurred in bringing or defending such action or
proceeding andlor enforcing any judgment granted.
24. Jurisdiction and Venue. This AGREEMENT shall be governed by and construed in
accordance with the laws of the State of California. Any action arising under or relating
to this AGREEMENT shaIl be brought only in the federal or state courts located in San
Diego County, State of California, and if applicable, the City of Chula Vista, or as close
thereto as possible. Venue for this AGREEMENT, and performance hereunder, shaIl be
the City ofChula Vista.
25. Municipal Powers. Nothing contained in this AGREEMENT shall be construed as a
limitation upon the powers of the CITY as a chartered city of the State of California.
26. No Waiver. No failure of the CITY to insist upon the strict performance by the OWNER
of any covenant, term or condition of this AGREEMENT, nor any failure to exercise any
right or remedy consequent upon a breach of any covenant, term, or condition of this
AGREEMENT, shaIl constitute a waiver of any such breach of such covenant, term or
condition. No waiver of any default hereunder shall be implied from any omission to take
any action on account of such default. The consent or approval to or of any act requiring
consent or approval shall not be deemed to waive or render unnecessary future consent or
approval for any subsequent similar acts. No waiver of any breach shaIl affect or alter this
AGREEMENT, and each and every covenant, condition, and term hereof shan continue
in full force and effect to any existing or subsequent breach.
27. Cumulative Remedies. All rights, options, and remedies of CITY contained in this
AGREEMENT shall be construed and held to be cumulative, and no one of them shall be
exclusive of the other, and CITY shaIl have the right to pursue anyone or all of such
remedies or to seek damages or specific performance in the event of any breach of the
Page7of9
16-15
tenns hereof or to pursue any other remedy or relief which may be provided by law or
equity, whether or not stated in this AGREEMENT.
28. Good Faith. The Parties promise to use their best efforts to satisfY all conditions to this
AGREEMENT and to take all further steps.anEI execute all further documents reasonably
necessary to put this AGREEMENT into effect.
29. Capacity of Parties. Each signatory and Party to this AGREEMENT warrants and
represents to the other Party that it has legal authority and capacity and direction from its
principal to enter into this AGREEMENT, that all resolutions or other actions have been
taken so as to enable it to enter into this AGREEMENT, and agrees to hold the other
Party or Parties hereto hannless ifit is later detennined that such authority does not exist.
(End of Page, Next Page is Signature Page)
Page 80f9
16-16
Signature Page for,
REIMBURSEMENT AND LIEN AGREEMENT
FOR TIDRD AVENUE AND MONTGOMERY
STREET IMPROVEMENTS
IN WITNESS HEREOF, the Parties hereto for themselves, their heirs, executors,
administrators, successors, and assigns do hereby agree to the full performance of the
covenants herein contained and have caused this Reimbursement and Lien Agreement to
be executed as of the effective date by setting hereunto their signatures herein below.
Cheryl Cox,
Mayor of the City of Chula Vista
SANCHEZ F AMIL Y LIMITED
PARTNERSHIP
~OWN;~ >
Co."t., J. ~"""Gc.~'Z p,,-~+-<,--
,
CITY OF CHULA VISTA
"CITY"
-APPROVED AS TO FORM
Bart Miesfeld, City Attorney
Date
(Notary to attach ackllowledgmelll for each sigllatllre.)
(Corporate Authority required for each Signatory)
J:\Desigrll.JII Proiects\TF\TFJ3/\Sanclte= Relmbllrsemcn! ~Assess",(mt Agreement Fillaf],doc
Page 9 of9
16-17
ACKNOWLEDGMENT
State of California
County of San Diego
)
)
)
,
On January 19, 2010 before me, M. Green, personally appeared Carlos J. Sanchez, who proved
to me on the basis of satisfactory evidence to be the person whose names is subscribed to the
within instrument and acknowledged to me that he executed the same in his authorized capacity,
and that by his signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature ~
X. M. GREEN -~
COMM. # 1756217 In
_1,1). NOT"" P\lStIC.C/ol.~O'''' -
SAllt)IEGOcoum ...
1 My CO.... ExP. AU" 6, 2111 I
16-18
EXHIBIT "A"
(property Description and Plat)
Parcell:
(APN: 623-142-39)
All that certain real property situated in the County of San Diego, State of California,
described as follows:
Lots 1 to 6, inclusive, in Block 15, of Otay, in the City of Chula Vista, County of San
Diego, State of California., according to Map thereof No. 263, filed in the office of the
County Recorder of San Diego County, July 25, 1887; together with that portion of the
Northerly 10.00 feet of Montgomery Street (formerly 2nd Avenue), adjoining said lots on
the South as vacated by Resolution of Board of Supervisors of San Diego County, a
certified copy of which recorded July 12, 1973 as Instrument No. 73-192430 of Official
Records.
Parcell:
(APN: 623-201-55)
All that certain real property situated in the County of San Diego, State of California.,
described as follows:
Lots 45, 46, 47 & 48, in Block 10 of Otay, in the City of Chula Vista, County of San
Diego, State of California, according to Map thereof No. 263, filed in the office of the
County Recorder of San Diego County, July 25, 1887; togethet with that portion of the
Southerly 10.00 feet of Montgomery Street (formerly 2nd Avenue), adjoining said lots on
the North as vacated by Resolution of Board of Supervisors of San Diego County, a
certified copy of which recorded July 12, 1973 as Instrument No. 73-192430 of Official
Records.
Sheet 1 of2
16-19
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EXHIBIT "B"
Project Title:
LIEN: APN 623-201-55 (SEC) &
APN 623-142-39 (NEC) of Third Avenue and
Montqomerv Street
City of Chula Vista
PUBLIC WORKS-ENGINEERING
FINAL COST ESTIMATE
Project Number:
DATE:
PREPARED BY:
CHECKED BY:
~
TF-331
J~~i668
Mari
-JeffM ____.
-~_.._-
rN^~TI[:::::_~'_..""'.'.~;:~e:~r~~;i~if.'..'.'.'... ......;..TT;:.'?!1:I~J;:~_~~r-:~ri;t-:1._T~~J~.c~--~-;. -A:66~-......!
'APN 623-201-55 (SEC) .. . . !
_.--..~"'.."--_._~.,._---_._-------------~-----------t-'--------,'--------------'---.--------i----~.----.--.----i
1 Staking and Engineering Lump Sum I' $10,000.001 $10,000.00 !
.____.,.._._....,,__..._._.___,~~'w.__._.___._____________...--...-----.....-.--...,....-..-.---, -- _ .......-...--...---:------..----.---.--.-r---- .._.........__.__....-\__.._.._.__.__......._____.i
2 Utility relocation 1 'Lump Sum' $3,000.00: $3,000.00 '
3 'P.c:C.~~~b;~d~~~~~i:":~~_~:-~_=:~:---~=~_-1~.-=~~i~~~I-~~~t~~ - '-'-$60~ool::_$I~:~20:0~J
4 P.C.C. sidewalk (167' x 5.5') 920 Square Feet! $10.00! $9,200.00 i
.. . ... _u ._..__.,_.....___......_._._...'..._..."....._....._......._...._..__..._._m.~.._.._.._.,___ ... __n.____ ,..,_... ... ... ...........'..___... . . __n_j
5 A.C. pavement(167'x12' square feet, 4" thick)' 50 Tons $155.00! $7,750.00
.......__..__,..._.....___..__._...._ _.......mmn..._.._.._...__..___.".,_ ...._...__,............._._,_ ... ......--~.... .... ....--.....'..-.......
6 'Remove A.C. dike 130 'Lineal Foot $13.00: $1,690.00
7 Re;;,~~~~:~;~~~i~_:_:.~.~:=:-- '::~~~:_~==~OO~ ___ Lin~;;;~~~tJ $1.00'- $2:00'4,00 ... \
i..---...-.---,------.--n-- --~--~-_.~----7-----~~--+~---~----1
\n__,~!'_~_~~:1~142~39 .(~_EC) _________-'_____-------;_______.._+_____.___-;___._____!
L 1 'Staking and Engineering , 1 iLump Sum! $10,000.00: $10,000.00 !
.~___~:~~~~ A:.C'- si~~wal"-.___.._n_____J~~~~oo ---;~quar~:et 1-=_::=:::~$1.ool.-$~~600.0~1
! 3' Utility relocation ! 1 ! Lump Sum! $3,000.00i $3,000.00 i
. \ ' , ' ,
......__.--;__..__.._.__.__._H_____________.___..__....___-.--;-------f----.--..--I--.--...-....-.--.------]"'"..-.....-'-----'--'---j
4P.C.C. curb and gutter : 167 Lineal Foot! $60.00: $10,020.00 i
. -.-----o-------..-..----..------.--.-~---.-..-..-._--.---..-.-......---~._---..---...,.-..--.._.----,..---~.---..---.--........,........ .-.....-.----..-1-.---.--.--------,
'5 'P.C.C. driveway (12') 120 'Lineal Foot $12.00: $1,440.00 i
...____._._.___....__.__.____._.....~___~_._...____~_____...--.~-. -..----...----.-----~.-......-.----_.,-----..---r.."- .-..-...---.....------.\..-.. .......---.--.......--..-:
6P.C.C. sidewalk ' 752 Square Feet! $10.00: $7,520.00
..-....-----0------... .----------..-.----...-.--...--.-.-.-.-.------..-...-.-.--------....~.......-..--.~.. ....---------"-..-.-.--....-....----;
.?__~"':~:!'_a~"_rt1~n:.(",600 S<1Uare_~"_"_t,~:~___..___.....~_!~~_____,_ $155.00' $6,200.00 '
8 Remove A.C. dike 167 . Lineal Foot i ---$13.00)-'$2,171.00----,
,
.'. .....--'j:i:-C.C:Fedes-iri.". Ram jJwith 'Tru';cated---'---~--" ..._.___~___________c..-- -- ----.--'------.--.--i
9 ..' [)"rn_~~_... .. __.___._n__n._______..___~_.~!:-"c~______. ...... .__$3~5~~:~_~_ $1_~,_0~~.00 i
~~....,....--
.....>..cl)l1thigetlcl;;~l
_=--_~,-----~~~~~99,615.00..i
10.0Iir'lorri 1......:..,.. $99,615;001"$,9,961\501
'. .......... S~btota.I:!$:O~,576.5o,l
'.:......$99,.61.5.00 $....14,942.25 j
..... '. ....,
$9s,61s;00'.it 19,s:23.00'!
1$99;6}5.0'0'S. 14,94:Z~25!
. '.' >$S9;61S.00~$
. $99,615;00'; $
..-.-.-..--
------.--
.... .......co~stiU"til)"itispe"tic"'(sti:.ffcl)sis)
.' "beslgl1(stifl(cl)siS>!
:>~ubi!I)Worksl'\ ""/2.7 .... ""'/.rl
,
.$99,S1S.00i$....
,
,. 9,961.50;-
- -:::--d
- I
.::'.:Z,654jiJI
PlanninQJEnvironmental
$99,615.00
TOTAL:!' $172,000.00 !
NOTES:
09121/2009
Lien c.o:;;ts 6-11-08
1 6-21
RESOLUTION NO 2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING IRREGULARITIES, ACCEPTING
BIDS AND AWARDING THE CONTRACT FOR THE
"TRAFFIC SIGNAL MODIFICATION AT THE
INTERSECTION OF THIRD A VENUE AND MONTGOMERY
STREET (TF331)" PROJECT TO RAlV10NA PAVING AND
CONSTRUCTION CORPORATION, IN THE AMOUNT OF
$263,493.90, AND AUTHORIZING THE EXPENDITURE OF
ALL A V AILABLE FUNDS IN THE PROJECT
WHEREAS, on February 17, 2010, the Director of Public Works received sealed bids for
the "Traffic Signal Modification at the Intersection of Third Avenue and Montgomery Street in
the City ofChula Vista, California (TF330)" Project; and
WHEREAS, this project is included in the Capital Improvement Program (CIF) budget to
replace existing traffic signal equipment and to install a new four-phase traffic signal at this
intersection; and
WHEREAS, the Director of Public Works received five (5) bids as follows:
TOTAL
SUBMITTAL SUBMITTED
CONTRACTOR DEFICIENCIES BID
,Ramona Paving and Construction Missing Letter
I Corporation-Ramona, CA Authorizing Capacity(ies) $263,493.90
for Signature
Missing Letter
2 H M S Construction Inc. - Vista, CA Authorizing Capacity(ies) $283,211.00
for Signature
Missing Letter
3 Lekos Electric, Inc. - EI Cajon, CA Authorizing Capacity(ies) $297,335.00
for Signature
P T M General Engineering Services, Missing Letter
4 Inc. - Riverside, CA Authorizing Capacity(ies) $299,299.00
for Simature
HT A Engineering & Construction Missing Letter
5 Authorizing Capacity(ies) $304,795.00
Inc.-Baldwin Park, CA for Signature
WHEREAS, none of the bidders submitted the "Letter Authorizing Capacity(ies) for
Signature" with their bid proposals; and,
WHEREAS, staffs opinion that it would serve no public purpose to reject all bids and to
re-bid the project since all contractors made the same error in their bids; and,
16-22
WHEREAS, staff recommends that City Council conduct the public hearing, waive the
irregularities in the bids (as provided for in Section 1009 of the City Charter), and award the
contract to Ramona Paving and Constmction Corporation in the amount of $263,493.90; and,
WHEREAS, the bid submitted by Ramona Paving and Constmction Corporation is below
the Engineer's estimate of$297,118 by $33,624, or approximately 11%; and,
WHEREAS, staff has verified the references provided by the contractor with whom he
contracted within the past two years and has found that Ramona Paving and Constmction
Corporation has performed the work satisfactorily; and,
WHEREAS, staff has reviewed the low bid and recommends awarding the contract to
Ramona Paving and Constmction Corporation of Ramona, California.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby waive irregularities, accept bids and award the contract for the "Traffic Signal
Modification at the Intersection of Third Avenue and Montgomery Street in the City of Chula
Vista, California (TF331)" Projectto Ramona Paving and Construction Corporation in the
amount of $263,493.90.
BE IT FURTHER RESOLVED, that the City Council of the City of Chula Vista does
hereby waive Council Policy 574-01 and authorize the Director of Public Works to approve
change orders, as necessary, and expend all available contingency funds in the project.
Presented by
Approved as to form by
Richard A. Hopkins
Director of Public Works
~/~/~
Miesfeld
City Attorney
16-23
RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A REIMBURSEMENT AND LIEN
AGREEMENT FOR THIRD AVENUE-AND MONTGOMERY
STREET IMPROVEMENTS
WHEREAS, the proposed Reimbursement and Lien Agreement for Third Avenue and
Montgomery Street Improvements ("Agreement"), is between the City of Chula Vista, a municipal
corporation ("City"), and the Sanchez Family Limited Partnership ("Owner"); and
WHEREAS, this Agreement establishes provisions for the reimbursement by the Owner of
costs incurred by the City for the construction of public street improvements along the east side of
Third Avenue, north and south of Montgomery Street; and
WHEREAS, on January 8, 1981, the Owner entered into two Lien Contract Agreements to
provide right-of-way and public street improvements as a condition of approval for a Special Use
Permit for the expansion of a professional/commercial complex on properties located at the northeast
and southeast comers of Third Avenue and Montgomery Street; and
WHEREAS, staff met with the Owner, Dr. Sanchez, and informed him of the City's intent to
move forward with construction of the improvements, and presented the project's scope and cost;
and
WHEREAS, the Owner's obligation of the project costs under the 1981 Lien Contract
Agreements is estimated at $172,000; and
WHEREAS, the proposed Agreement would allow the City to proceed with construction of
the street improvements, remove the existing liens and establish new liens binding upon the property,
and obligate the Owner to repay construction costs, plus interest, over a period often years through
an annual assessment on the owner's property tax bill.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City ofChula Vista does
hereby approve the "Reimbursement and Lien Agreement for Third Avenue and Montgomery Street
Improvements," which is on file in the office of the City Clerk.
BE IT FURTHER RESOLVED, that the City Clerk is directed to record this agreement with
the County Recorder of the County of San Diego.
Richard A. Hopkins
Director of Public Works
Presented by
16-24