HomeMy WebLinkAboutReso 1988-13823 Revised 10/21/88
RESOLUTION NO. 13823
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING ADDITIONAL FUNDS TO
REIMBURSE OTAY WATER DISTRICT FOR COSTS
ASSOCIATED WITH WATER FACILITIES FOR EASTLAKE
ASSESSMENT DISTRICT 85-2
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, on December 17, 1985, the City Council approved
an agreement between the City and Otay Water District for
installation, conveyance, maintenance and operation of water
facilities within EastLake Assessment District No. 85-2, and
WHEREAS, the water facilities were constructed by public
works contracts under the procedures of the "Municipal
Improvement Act of 1913." and construction of the water
facilities were financed through the sale of "1915 Act" bonds, and
WHEREAS, the agreement stipulated that upon completion
of the installation of the facilities, Otay Water District will
own, operate and maintain said improvement facilities and
.~urther stipulated that:
1. All the improvements shall be installed and
completed in accordance with plans and
specifications approved by Otay Water District.
2. Otay Water District shall be authorized to inspect
all work and to reject any work or improvement that
does not meet requirements of the plans and
specifications.
3. Otay Water District shall be reimbursed for all
costs incurred for inspecting, rejecting or
accepting the said improvements.
4. City shall assure that all contracts awarded shall
provide for warranties or guarantees which shall
protect Otay Water District for any defects
discovered within a period of one year following
final acceptance of the work by Otay Water District.
WHEREAS, the City awarded four separate contracts for
water facilities within EastLake Assessment District 85-2:
1. EastLake Business Center
2. 20-inch offsite water main
3. 5 million gallon steel reservoir
4. 980 zone pump station
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WHEREAS, the City accepted the contract work for items 1
-through 3 on August 25, 1987, and item 4 on October 13, 1987 but
o date Otay Water District has not accepted the water facilities
although the system is operational and is being maintained by
Otay Water District, and
WHEREAS, there are a number of deficiencies that still
need to be corrected before Otay Water District will accept the
system which deficiencies were not included in the original plans
but are necessary to bring the system to their standards, and
WHEREAS, in the process of Otay Water District
correcting the deficiencies and operating and maintaining the
system, the cost of doing so has exceeded funds appropriated in
EastLake Assessment District 85-2 for this purpose and as of
September 15, 1988, Otay Water District has incurred a deficit
which needs to be reimbursed by the Assessment District.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Chula Vista does hereby appropriate funds from the
EastLake Assessment District 85-2 Improvement fund in the amount
of ~111,000 to reimburse Otay Water District.
Presented by Approved as to form by
ctor of Thoma~ 'J.~yr6n, City Attorney
Works
4809a
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ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CH . VISTA, CALIFORNIA, this 25th doy of October
19 88 , by the following vote, to--wit:
AYES: Council members McCand]_j_ss, Nade~:, Malcolm, Cox
NAYES: Counci 1 members ~one
ABSTAIN: Counci linetubers I~one
ABSENT: Councilmembers Moore
/~0f the City of Chulo Vista
ATTESTS, City Clerk
ST-r OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California,
DO HEREBY CERTIFY thor the obove ond foregoing is 0 full, true ond correct copy of
RESOLUTION N0. 13823 ,ond fhot the some hos not been omended or repeoled
DATED
City Clerk
V
CC-660
TELEPHONE: 462-2222, AREA CODE 619
September 15, 1988
Mr. Cliff Swanson
Acting City Engineer
City of Chula Vista
Engineering Department
276 Fourth Avenue
Chula Vista, CA 92010
Dear Mr. Swanson:
This letter is in response to our recent meeting and
telephone conversations relating to water facilities finan-
ced by Assessment District 85-2.
Enclosed is a copy of the latest computer run on the work
orders which are open and are the subject of our discussion.
As shown on the attached recap, there is a deficit of
$78,267.
In reference to your request, a detailed review of each work
order was made and it was discovered there was no main-
tenance involved in any of the work orders, except for Work
Order No. 1473. In the case of Work Order No. 1473, the
amount charged thereunder for maintenance since January 7,
1988 is $8,101.
We believe that a reasonable estimate for completion of all
work required to finish the remaining jobs, except the
telemetry system, is $15,000. We will provide written
notice to you when we have completed that work.
Upon the City's payment of the amount of $78,267 and the
$15,000, we agree to accept the systems involved in the
above work orders and take over full operations and
responsibility.
Mr. Cliff Swanson
September 15, 1988
Page -2-
In the matter of the telemetry system please be advised that
we feel there are inherent problems with the system. It is
our intention to demand correction of the defects within the
warranty period which will be one year after our District
accepts the system. Please acknowledge in writing our un-
derstanding of the warranty period. It is our intention to
work closely with the City of Chula Vista and the respon-
sible contractors toward a satisfactory completion of the
telemetry system.
We look forward to concluding this long outstanding matter
at your earliest possible convenience. Please contact me if
we might be of further assistance.
Acting General Manager
encls.
DATE
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