Loading...
HomeMy WebLinkAboutAgenda Statement 1987/10/01 Item 4COUNCIL AGENDA STATEMENT • Item 4 Meeting Date 10/1/87 • ITEM TITLE: Resolution~~oZ G purchase o easements Control Project Approving agreement with Oscar Davila for related to Telegraph Canyon Creek Flood SUBMITTED BY: Director of Public Works/City Engineer ~ ~ REVIEWED BY: City Manager ~ ~ ~~~ 4/5ths Vote: Yes No X The U.S. Corps of Engineers opened bids for construction of the the Telegraph Canyon Creek Flood Control Channel project on September 30, 1987. Before the contract can be awarded, the City must certify that we have obtained all rights of way needed to construct the project. Mr. Davila, through his attorney, and City staff weeks to acquire the necessary easements over the necessity to proceed with condemnation action. An and Mr. Davila has been negotiated and the terms are ready for City Council consideration. RECOMMENDATION: have been negotiating for Davila property without the agreement between the City and conditions of that agreement Adopt resolution approving agreement for the acquisition of the permanent and temporary easements over the Davila property for the Telegraph Canyon Creek Flood Control project. BOARDS/COMMISSIONS RECOMMENDATION: N.A. DISCUSSION: The proposed agreement as recommended for approval is not available for inclusion with this agenda statement because the final terms and conditions were not negotiated finally until just prior to agenda transmittal. The document will be available in final form and transmitted to the City Council prior to the October 1 meeting. The key provisions of the agreement are: 1. Page 2, Section 2.11, Purchase Price - The purchase price of the permanent and temporary construction easement over the Davila property is $82,000. This value is substantially higher than the $57,500 previously discussed but the $82,000 price is the appraised value of the easement rights to be acquired as established by the County Real Estate Appraisal Division. Earlier discussions of a $57,500 value were not based upon an appraisal and, in order to assure the City's ability to certify right-of-way if a condemnation action became necessary, subject appraisal was ordered. In view of the value established, we must abide by that value in any subsequent condemnation action. As the City Council is aware, if condemnation action is instituted, • other damages already alleged by Mr. Davila and his attorney could theoretically increase the total cost of acquiring the easement rights beyond the $82,000 established as the value of the property. While we do not believe the property owner has suffered other compensable damages, attorney fees in proceeding with condemnation action would naturally in and by itself increase the cost. • 2. Page 2, Section 3, Purchase and Sale Condition Precedent - This section indicates that the agreement will be null and void if the Corps of Engineers does not award a contract for construction of the drainage culvert across the Davila property on or before October 16, 1987. This provision is critical to the agreement because under the Corps' specifications the contractor must complete construction of this portion of the box culvert across the Davila property within 75 days following notification to the contractor to commence work. Our agreement with Mr. Davila further provides that if construction of the culvert is not complete by January 1, 1988, the City will owe Mr. Davila $973.63 for each day beyond the January 1, 1988 completion date unless the contractor is delayed by adverse weather conditions as defined in section 31 of the proposed agreement. 3. Page 8, Section 31, Liquidated Damages - As indicated above, the proposed contract, specifically under Section 31, provides for liquidated damages to the property owner if the subject construction work across the Davila property is not completed on or before January 1, 1988. The awarding contract for this project will stipulate that the successful bidder has 75 calendar days in which to complete the box culvert across Davila's property. It is estimated that from 45 to 60 days, less adverse weather conditions, should be more than adequate to complete the Davila portion of the project. While staff had requested in writing that the U.S. Corps of Engineers modify their specifications to require the successful bidder to absorb any liquidated damages that might occur if the project was not completed prior to January 1, 1988, that provision did not get included in various amendments requested by the City. They did include the 75 day provision but, for reasons unknown • to us at this time, the liquidated damage provision shifting that responsibility to the successful bidder, did not get included. The U. S. Corps of Engineers is willing to again amend the specifications to include this provision but if we do so, a minimum of another 10 days delay in the opening of bids would be necessary. It is staff's recommendation that we do not make this request to the Corps, but that the City assume potential liability for the liquidated damages if such damages should occur. It is staff's belief that the successful bidder may be very willing to negotiate a change order to his contract and assume the potential liability for these liquidated damages for a minimal sum because, with a 75 day period in which to complete the work, the contractor will recognize the limited potential for the necessity to pay liquidated damages. By the same token, the potential liability of the City paying liquidated damages is also quite remote, so whether a change order should be sought should be delayed until the successful bidder is known and discussions with him can be held. FINANCIAL IMPACT: The cost of the recommended action is $82,000, plus minimal escrow costs and potential liquidated damages. Sufficient funds are budgeted to cover this expense. ESRA:mab #98 S~ O b;~ the C~ a.y Cc~~i,~ ~l of CflUia Vista, C"iio~ ~~ia Dated %~