HomeMy WebLinkAboutAgenda Statement 1988/05/10 Item 5•
COUNCIL AGENDA STATEMENT
Item 5
Meeting Date 5/10/88
ITEM TITLE: Resolution /3,sj Sf Approving revision to electric
extension, gas extension and agreement for utility payment
agreements for Las Flores Drive Assessment District 85-1
SUBMITTED BY: Director of Public Works ~~'-~..
REVIEWED BY: City Manager j~~ (4/5ths Vote: Yes No X )
On April 14, 1987, the City Council by Resolution No. 12982 approved three
agreements with SDG&E, one agreement each with Pacific Bell and Sweetwater
Authority for the installation and ownership of public utility facilities to
be built in conjunction with the improvement of Las Flores Drive (north of "D"
Street).
SDG&E's agreements required that installation of the utilities began within 60
days of the date the agreements were approved and that the work be completed
one year thereafter. Since we were unable to start the utility work within
the 60 day period, SDG&E requires that the agreement for gas extension,
electric extension and for utility payment be replaced with new ones.
• Pacific Bell and Sweetwater Authority are satisfied with the original
agreements and are not requesting any change.
RECOMMENDATION: That Council adopt resolution approving revision to
electric extension, gas extension and agreement for utility payment agreements
with SDG&E.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The Las Flores Drive extension (north of "D" Street) project has been under
construction since June 1, 1987. It was not until March 7, 1988 that the
contractor was ready to install the underground facilities required with this
project. The 8-month period was used to grade and consolidate the fill upon
which the Las Flores Drive street improvements are to be built.
We have now reached a point where the underground utilities can be
installed. We have executed three agreements with SDG&E, one agreement each
with Pacific Bell and Sweetwater Authority. The three SDG&E agreements
required the commencement of the installation of their facilities within 60
days from the approval of these agreements. The agreements with Pacific Bell
and Sweetwater Authority did not have the 60-day requirement. Execution of
the five agreements was a requirement of the assessment district process. The
two cable T.V. companies, Cox Cable and Ultronics, have separate arrangements
for the installation of their facilities which do not require that an
• agreement be executed.
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Page 2, Item 5
• Meeting Date 5%
SDG&E has requested that their agreements be replaced so as to
reflect the actual construction schedule and the revised cost to do the work.
This cost has been reduced due to recent California Public Utility Commission
(CPUC) decisions taking effect since 1987, even though the scope of the work
has increased to accommodate new land development projects approved (or to be
approved) since 1987. The cost revisions are as follows:
Agreement Original Cost New Cost
1. Gas Extension $18,762.00 $18,212.00
2. Electrical Extension 44,700.00 31,383.00
3. Utility Payment (trench system) 4,793.00 6,210.00
$68,255.00 $55,805.00
All cost increases attributable to the new development in the area will be
paid by the developers directly. The assessment district will cover the cost
of the SDG&E facilities that would have been built to accommodate the project
as originally assessed. Thus the entire net cost savings will be passed to
the assessment district.
• Mr. Warren B. Diven, Bond Counsel for this project, has reviewed the
supplemental agreements and finds them satisfactory as to form. The City
Attorney's office concurs with this decision.
FISCAL IMPACT: The cost to install the SDG&E facilities has decreased.
WPC 3735E
•
the City Council of
Chula Vista, C~iifornia
Dated
~,,