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RESOLUTION NO. 2015-219 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $87,609 TO THE CAPITAL IMPROVEMENT FUND (CIP NO. STL400) BASED ON UNANTICIPATED REVENUE ASSOCIATED WITH A UTILITY AGREEMENT WITH SWEETWATER AUTHORITY (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
The City entered into a Utility Agreement with Sweetwater Authority for the relocation of existing water facilities along the Third Avenue Streetscape project between “E” Street and “H” Street. The proposed resolution, if approved, would appropriate $87,609 to the Capital Improvement Fund based on the unanticipated revenue associated with the Utility agreement with Sweetwater Authority to CIP No. STL400.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project was covered in previously adopted Final Environmental Impact Report for the Chula Vista Urban Core Specific Plan (UCSP), Final Environmental Impact Report-06-01 (“FEIR-06-01”). Pursuant to the California Environmental Quality Act (CEQA) on April 26, 2007 the City, acting as Lead Agency certified FEIR-06-01 for the UCSP. On January 25, 2011 the City, acting as Lead Agency, having found and determined that certain amendments to the UCSP, including the referenced Third Avenue Streetscape Improvements, would not result in significant unmitigated impacts and that only minor technical changes or additions to FEIR-06-01 were necessary and that none of the conditions described in Section 15162 of the State CEQA Guidelines calling for the preparation of a subsequent environmental document had occurred, adopted an Addendum to FEIR-06-01. Therefore, no further CEQA actions or determinations are necessary.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
Project Background
The City entered into a Utility agreement with Sweetwater Authority regarding required water facility relocations within the limits of the Third Avenue Streetscape project. The City incorporated the water facility relocation work into the construction contract for Phase II of the Third Avenue Streetscape project (CIP No. STL400 - Resolution No. 2015-079). This scope of work includes the relocation/upsizing of an existing 10-inch AC pipe with a new 12-inch PVC pipe. The new water pipe will run along the north bound side of Third Avenue and is approximately 20’ west of the nearly 50 year old existing water pipe. All water facility construction is within the City of Chula Vista right-of-way.
Agreements
A Utility agreement, prepared in accordance with the Government Code Section 6500 dated August 9, 2011, between the City and Sweetwater Authority has been executed and approved (See Attachment “1”); said agreements outline the details/responsibilities between the City and Sweetwater Authority for the project that includes, but are not limited to, the following items: definitions, preconstruction, construction, reimbursement of costs, change orders, inspection, bonds, prevailing wage and insurance, indemnity, records, notices and miscellaneous items.
Per the Utility agreement, “Sweetwater Authority must deposit with the City an amount equal to fifty (50) percent of the bid amount attributable to the construction and installation of Authority Facilities, plus a five (5) percent contingency.” Based on the construction contract and estimated labor costs, it was determined that Sweetwater Authority must deposit with the City $87,609 for the purpose of progress payments made by the City to the City’s contractor for the abovementioned utility work.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18705.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Third Avenue, between “H” Street and “E” Street is designated in the City’s Urban Core Specific Plan as a Smart Growth area. Smart Growth is characterized as providing a variety of transportation choices, pedestrian-friendly access, and strong links between land uses and regional transportation. Smart Growth fosters distinctive and attractive communities with strong and unique identities, drawing people to them, thereby enhancing the area’s overall vitality and economic stability.
CURRENT YEAR FISCAL IMPACT
Approval of the resolution will appropriate $87,609 to the Capital Improvement Fund based on revenue provided by the Sweetwater Authority reimbursement agreement to CIP STL400 to cover the cost for relocating the existing water facilities.
ONGOING FISCAL IMPACT
Since the water transmission lines are owned by Sweetwater Authority, no additional funds or maintenance will be required by the City.
ATTACHMENTS
1. Sweetwater Authority Reimbursement Agreement
Staff Contact: Patrick C. Moneda, Senior Civil Engineer