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January 7, 2025
ITEM TITLE
Reimbursement Agreements: Approval of Reimbursement Agreements with Otay Water District for Water Line Facility Installation and San Diego Gas and Electric for Gas Facility Construction for the Heritage Road Bridge Replacement (STM0386) Project
Report Number: 24-0292
Location: Heritage Road and Main Street between Entertainment Circle North and Nirvana Avenue Department: Engineering
G.C. § 84308: Yes
Environmental Notice: The Project was adequately covered in the previously adopted Mitigated Negative Declaration (MND) IS -17-001 (SCH No. 2017021078) and Mitigation Monitoring and Reporting Program (MMRP), and any addenda for the Heritage Road Bridge Replacement Project. Under the National Environmental Policy Act ( NEPA), the California Department of Transportation (Caltrans) has determined that the Project is exempt pursuant to 23 USC 327.
Recommended Action
Adopt a resolution A) approving a reimbursement agreement between the City of Chula Vista and Otay Water District to construct Water Line Improvements and B) approving a reimbursement agreement between the City of Chula Vista and San Diego Gas & Electric to construct gas pipeline supports.
SUMMARY
City staff is proposing the approval of reimbursement agreements with Otay Water District (OWD) and San Diego Gas & Electric (SDG&E) to facilitate the construction of utility infrastructure for the Heritage Road Bridge Replacement Project (STM0386) (Project). These agreements ensure that the work, paid for by the respective agencies, is completed in accordance with the project schedule to prevent delays.
Adoption of the resolution would:
A) Approve a reimbursement agreement between the City and Otay Water District for installation of water line facilities for the Heritage Road Bridge Replacement (STM0386) project with an associated deposit account totaling $2,964,173.10
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B) Approve a reimbursement agreement between the City and San Diego Gas & Electric for installation of Gas Pipeline Supports for the Heritage Road Bridge Replacement (STM0386) project with an associated deposit account totaling $55,158.60
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project was adequately covered in the previously adopted Mitigated Negative Declaration (MND) IS-17-001 (SCH No. 2017021078) and Mitigation Monitoring and Reporting Program (MMRP), and any and all addenda for the Heritage Road Bridge Replacement Project. Thus, no further environmental review is necessary. Under the National Environmental Policy Act (NEPA), the California Department of Transportation (Caltrans) has de termined that the Project is exempt pursuant to 23 USC 327.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The Project will replace the existing bridge across the Otay River on Heritage Road, south of Main Street.
OWD and the SDG&E Gas Division propose franchise utility improvements through the future bridge within the Project limits.
The construction schedule for the Project is primarily managed by the contractor selected by the City, with additional influences from external factors such as weather conditions. Significant challenges and potential impacts to the project schedule arise when working with outside agencies and their third-party contractors. Delays from utility work can then adversely affect the City’s selected contractor and the City’s ultimate Project schedule.
To avoid such challenges, OWD and SDG&E propose agreements with the City for work to be performed by the City’s selected contractor funded by a City held deposit account. This arrangement reduces schedule risk for all parties and provides mutual benefit.
The City’s selected contractor would, for OWD, install pipe line and ancillary items per agreement and, for SDG&E, install pipe supports inside the bridge. The agreements specify under ARTICLE IV.
REIMBURSEMENT OF COSTS, that the agencies are committed to one hundred percent (100%) of the bid amount attributable to the construction and installation of their facilities, plus a five (5) percent contingency for purposes of reimbursing the City for progress payments made by the City’s contractor on the Project. The bid amounts for these items are summarized as follows:
Otay Water District Bid Items:
Item Item Description Quantity Unit Unit Price Total
8-01
Water Improvement Mobilization,
Demobilization, Bonds, Permits,
Insurance, & Cleanup
1 LS $125,000.00 $125,000.00
8-02 Excavation Support System/Shoring 1 LS $2,405.00 $2,405.00 P a g e | 3
8-03 16-inch Cement Mortar Lined and
Coated, Tape Wrapped Pipe 849 LF $850.00 $721,650.00
8-04 12-inch Cement Mortar Lined and
Coated, Tape Wrapped Pipe 60 LF $1,186.00 $71,160.00
8-05 12-inch Cement Mortar Lined and
Polyurethane Coated Pipe 960 LF $648.00 $622,080.00
8-06 16-inch Butterfly Valve 9 EA $12,700.00 $114,300.00 8-07 12-inch Gate Valve, Buried 4 EA $6,922.00 $27,688.00 8-08 6-inch Fire Hydrant Assembly 1 EA $22,600.00 $22,600.00 8-09 4-inch Blow-off Assembly 3 EA $15,500.00 $46,500.00 8-10 4-inch Combination Air Valve Assembly 5 EA $18,900.00 $94,500.00 8-11 2-inch Water Service 1 EA $7,892.00 $7,892.00
8-12 Pipe Supports - Potable Water Pipeline 1 LS $22,300.00 $22,300.00 8-13 Pipe Supports - Future Recycled Water
Pipeline 1 LS $20,500.00 $20,500.00
8-14 STA 8+58.92 - Connect 16-inch Water to
Existing Water Main 1 LS $15,100.00 $15,100.00
8-15 STA 22+65.83 - Connect 16-inch Water
to Existing Water Main 1 LS $41,300.00 $41,300.00
8-16 12-inch Flexible Expansion Joint 4 EA $21,000.00 $84,000.00 8-17 Flexible Joint Vaults 4 EA $37,500.00 $150,000.00 8-18 Pressure Reducing Station Vault 1 LS $71,300.00 $71,300.00 8-19 12-inch Gate Valve, PRS 2 EA $5,103.00 $10,206.00 8-20 4-inch Gate Valve, PRS 2 EA $2,164.00 $4,328.00
8-21 12-inch Pressure Reducing Valve 1 EA $39,700.00 $39,700.00 8-22 4-inch Pressure Reducing Valve 1 EA $9,598.00 $9,598.00 8-23 Pressure Reducing Station Piping &
Fittings 1 LS $60,900.00 $60,900.00
8-24 Cathodic Protection System 1 LS $69,200.00 $69,200.00 8-25 Electrical & Instrumentation 1 LS $331,000.00 $331,000.00 8-26 Utility Crossings Not Identified On Plans
Greater than 4-inches in Diameter 3 EA $7,605.00 $22,815.00 8-27 Unknown or Unidentified Utilities
Allowance 1 LS $15,000.00 $15,000.00
TOTAL $2,823,022.00
San Diego Gas & Electric Bid Items:
Item Item Description Quantity Unit Unit Price Total
9-01 Gas Support Pedestal [F] 46 EA $1,142.00 $52,532.00 P a g e | 4
TOTAL $52,532.00
Staff recommends adopting agreements with OWD and SDG&E for costs relating to installing utility improvements within the project limits.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real p roperty-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware, and has not been infor med by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Sufficient funding to cover the City’s portion of the project costs is included in capital improvement project STM0386. In addition, OWD and SDG&E will submit deposits in the amounts of $ 2,964,173.10 (DDA0991) and $55,158.60 (DDA0992) respectively to cover all reimbursable project costs. Therefore, there is no additional current-year fiscal impact to the Highway Bridge Program nor the Transportation Development Fund as a result of this action. Project costs are summarized below:
OWD FUNDS REQUIRED FOR UTILITY AGREEMENT
(STM0386)
Bid Item Total $2,823,022.00
5% Contingency $141,151.10
Total Funds Required $2,964,173.10
SDG&E FUNDS REQUIRED FOR UTILITY AGREEMENT
(STM0386)
Bid Item Total $52,532.00
5% Contingency $2,626.60
Total Funds Required $55,158.60
DEPOSIT ACCOUNTS FUNDING FOR CONTRACT (STM0386)
Otay Water District (OWD) $2,964,173.10
SDG&E - Gas $55,158.60
DEPOSIT ACCOUNT TOTALS $3,019,331.70
ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require routine street maintenance.
ATTACHMENTS
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1. Reimbursement Agreement Between Otay Water District and The City of Chula Vista, California (Heritage Road Bridge Replacement) for Costs Related to the Installation of Otay Water District Facilities
2. Reimbursement Agreement Between San Diego Gas & Electric Company (SDG&E) and the City of Chula Vista, California (Heritage Road Bridge Replacement) for Costs Related to the Installation of Gas Pipeline Supports
Staff Contact: Matthew Little, PE, Deputy City Manager/Director of Engineering & Capital Projects Rosina Constanza, Acting Assistant Director of Engineering/Acting City Engineer David Hicks, Associate Civil Engineer