HomeMy WebLinkAbout06/16/1992, C-8 - CONSIDERATION OF AN AGREEMENT WITH R. STRASBAUGH, INC. TO PARTICIPATE IN CONSTRUCTION OF A STORM DRAIN PROJECT ON TANK FARM ROAD EAST OF HIGUERA STREET II�H�II�Illllf IIIIp�I�IIIIv7 MEETING DATE:
City Illl�ulllu ofSanLUIS QBISpO JUNE 16, 1992
COUNCIL AGENDA REPORT STEM NUMBER:
FROM: Wayne A. Peterson, City Engineer
Prepared by: Jerry Kenny, Supervising Civil Engineer
SUBJECT:
Consideration of an agreement with R. Strasbaugh, Inc. to par-
ticipate in construction of a storm drain project on Tank Farm
Road east of Higuera Street
RECOMMENDATION:
1) Approve the agreement authorizing reimbursement of up to
$10, 000 for installation of a storm drain in Tank Farm Road
2) Authorize the Mayor to execute the agreement
3) Appropriate $10, 000 in account no. 001-5050-052-493 (minor
capital projects) in the flood control program
DISCUSSION:
As a condition of development of the new Telegram-Tribune build-
ing at 3857 South Higuera Street, the developer is constructing a
public storm drain between the project site and Tank Farm Road.
At almost the same time, the T.K. Business Park is being devel-
oped in the County area nearby. The developer of T.K. Business
Park will improve Higuera Street between Tank Farm Road and
Suburban Road, including the storm drain extension to Tank Farm
Road.
The existing City storm drain pipes crossing Tank Farm Road
between these two projects are substandard in size (capacity) and
have extremely shallow cover. These existing pipes were in-
stalled when the traffic signals were installed, and due to down-
stream limitations (an open ditch) , the pipes couldn't be placed
at the proper depth and slope without the extensive downstream
storm drain construction.
Strasbaugh has included the installation of a new 36-inch storm
drain pipe across Tank Farm Road in his contract drawings,
subject to an agreement for reimbursement to cover the City's
share of the work. This should provide for lower bids than would
be expected under a separate City contract. In fact, it's
possible that the same contractor will do both developers ' work.
Staff prepared the attached agreement which has been executed by
Strasbaugh. It has been reviewed and approved by the City
Attorney and Finance Director.
Section 204 of the purchasing control procedures provides for
"waivers" of the standard City bidding procedures where not
practical. While this section doesn't specifically address
"developer agreements" such as this, the logic seems to exist to
allow for it. There are provisions for automatic City contribu-
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COUNCIL AGENDA REPORT
Strasbaugh Agreement
Page 2
tions to developers' projects (oversizing sewer and water mains)
adopted by resolution, but nothing covers situations like this.
This storm drain work will significantly improve the drainage
problems occurring in this area during moderate storms. These
projects are actually providing for the brunt of needed in-
frastructure improvements, which could otherwise be the total
responsibility of the City.
FISCAL IMPACT:
The City's share of the project is estimated to cost $10, 000,
including a share of the plan costs and contingencies. The
agreement specifies a $10,000 maximum contribution.
This is a new minor capital project for the Flood Control
Program. Attached is a budget amendment request setting up the
money needed in a minor capital account.
Attachments: agreement
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AGREEMENT
THIS AGREEMENT, executed this _5C>-/_1 day of A 1992,
by and between R. Howard Strasbaugh, Inc. , hereinafter called
"DEVELOPER", and the City of San Luis Obispo, hereinafter called
"CITY" .
WHEREAS, DEVELOPER proposes to construct a public storm drain
and certain street improvements in conjunction with the
development of a new building for the Telegram-Tribune Company at
3857 South Higuera Street, and
WHEREAS, existing CITY storm drain pipes crossing Tank Farm
Road in Higuera Street are of inadequate capacity and depth.
NOW THEREFORE, CITY agrees to participate with DEVELOPER in the
construction of a new 36-inch diameter RCP storm drain (99 LF)
crossing Tank Farm Road, as shown on plans prepared by Central
Co4st Engineering (sheet 5) , and approved by the City Engineer,
as follows:
1. The reimbursement to DEVELOPER will be based on unit price
per linear foot for the pipe installed, and for replacement of
any damaged traffic signal detector loops (lump sum) , including
replacement paving, plus 10% for contingencies and overhead.
CITY shall be supplied with bid documents prior to award of a
contract by DEVELOPER and hereby reserves the right to reject any
bids.
2. The maximum total contribution by CITY is ten thousand
dollars ($ 10, 000. 00) .
die_&
R. Howard Strasbaugh Agreement
Page Two
3 . DEVELOPER shall submit a certified statement of costs for
the above-described work upon completion of the work.
DEVELOPER:
R. Strasbaugh, Inc.
gy.
LarV H. S s ugh
Pream t
Alan Strasbaugh
Vice-President
CITY:
ATTEST:
John Dunn
City Administrative Officer
City Clerk Pamela Voges
App to Content:
Cit dministrative Officer
Cit En inee
Finance Virector
A proved as to form:
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