HomeMy WebLinkAbout09 NOC PROJECT 700077 07-01-96AGENDA -,-
NO. 9
7-1-96
DATE: .RJLY 1, 1996
I nte-,r-Com
TO:
FROM:
SUBJECT:
WILLIAM A. I-]USTON, CITY MANAGER
PUBLIC WORKS DEPARTMENT/ENGINRRRING DIVISION
ACCEPTANCE OF PUBUC IMPROVEMENTS AND AUTHORIZATION TO FILE A
NOTICE OF COMPLETION FOR AD 86-2 IMPRO~ - REMOVAL AND
REPLACEMEI~ OF UNDERLYING AL~IJVI[~ AND EXISIING FILL lin LOTS 10 AND
RF~OMMENDATION
It is recommended that the City Council, at their meeting of ~uly 1, 1996 adopt Resolution No. 96-
73 ac~pting said work as complete and authorize thc recordation of thc Notice of Completion, and
direct the City Clerk to:
1. Release the Labor and Materials Bond not sooner than ttfirty-fivc (35) days after thc
date of recordation of the Notice of Completion; and
2. Release the Faithfid Performance Bond .not sooner than one year after the date of
recordation of the Notice of Completion; and
Assuming no claims or stop notices are filed, it is further recommended that 35 days after the date
of recordation of the Notice of Completion the City Council authorize payment of the final
retention in the amount of. $38,234.12 to Cash Grading Contractors. This amount, together with
the previous payments of $457,318.14 represents 100% of the final contract amount.
It is further recommended that the City Council authorize the Mayor to execute the attached
General Release of existing claims.
FISCAL IMPACT
The final cost of'the construction is $495,552.26 which includes four contract change orders to
Cash Grading Contractom. The additional work in the amount of $294,107.76 was for additional
remedial work which was required as a result of the soils testing being performed during the
grading operation. This resulted in expanding the scope of work from what was originally
anticipated as it was the City's obligation to bring this site up to acceptable geotechnical standards
as ~ed in the arbiwation agreement between the City and The Irvine Company.
BACKGROUND
During the lamboree Road construction, excess material from the roadway grading ~tion Was
placed within the limits of Disposal Site No. 2, which lies within portions of Lots 8, 10, 11, 16,
17 and 18 of Tract No. 13627. The initial grading operation was completed by the City's
contractor. However, as a result of The Irvine Company's final plan preparation for final grading,
it was discovered that certain areas within Disposal Site No. 2 still contained unsuitable material
identified as alluvial deposits, which have the potential for consolidation/collapse when subjected to
excessive moisture.
The City Council previously authorized binding arbitration with The lrvine Company to resolve a
dispute over who was responsible for the remedial/on of this soils problem. On September 2,
1994, the arbitration was conducted by the Judicial Arbitration Service (Judge Blanpied) and was
found in favor of The Irvine Company.
This project provided for the excavation of the alluvial deposits and recompaction of the future
building sites along with compaction grouting along the right-of-way lines of Pioneer Road adjacent
to Lots 10 and 18.
Tim D. Serlet
Director of Public Works/
City Engineer
TI~'.JO-~C~JNOC Tract no. 1~27
Associate Civil Engineer
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RESOLUTION NO. 96-73
A RESOLUTION OF TIlE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA ACCEIrrING TIlE WORKS OF
IMPROVEMENT AND AUTHOglZING RF.~ORDATION OF
NOTICE OF COMPLETION FOR AD 86-2 IMPROVEME/qTS
REMOVAL AND R~PLACEMENT OF UNDERLYING
ALL~ AND EXISTING FHJ~ IN LOTS 10 AND 18 OF
TRACT NO. 13627 (PROJF_L~NO. 700077)
WHEREAS, Cash Grading, Contractors, having a contract with the City of Tustin to constmcl
the hereinafter described public works and improvements; and '
WHEREAS, thc City Engineer has duly certified to the construction and.completion of said
public improvements hereinafter mentioned in a manner satisfactory to the City Council of the
City of Tusfin; and
WHERE~S, the City Council finds that said contractor has completed said public
improvement hereinafter more particularly described in accordance with the provisions of the
contract documents and the Notice of Completion, and acceptance of said public work and
improvement should be filed and payment of the balance due said contract authorized in
accordance with the contract documents;
NOW, TttE~EFORE, BE IT RESOLVED by the City Council of the City of Tustin that
said public work and improvement is found to be complete, and the same is hereby acceptS.
Said public work and improvement is more particularly described as follows:
AD 86-2 improvements, removal and replacement of underlying alluvium and
existing fill in Lots 10 and 18 of Tract No. 13627 (Project No. 700077)
AND BE IT FURTHEIi RF.~OLVEB that the City Engineer of. the City of Tustin be, and
is hereby authorized to execute and file a Notice of Completion for the acceptance of said
public works and improvement described herein as required by law.
PASSEr} AND ADO~ at a regular meeting of the City Council of the City of Tustin held
on the 1" day of July, 1996.
Tracy Will~ Worley, Mayor
A~TEST:
City Clerk
7
2G
GENERAL RELEASE OF EXISTING CLAIMS
This General Release of Existing Claims ("Release") is entered into by and between
the IRVINE COMPANY,..a Michigan Corporation, IRVlNE COMMUNITY BUILDERS, a
division thereof (hereinafter collectively referred to as the "Company"), and the CITY OF
TUSTIN, California, a municipal corporation (hereinafter the "City").
RECITALS
WHEREAS, the Company and the City previously agreed to binding arbitration of
a dispute between them over the interpretation of indemnity language in instruments
entitled "Agreement For Improvement of Jamboree Road Between Irvine Boulevard and
Existing Chapman Avenue" and "Construction Easement Agreement" (hereinafter
collectively referred to as the Jamboree Road Improvement ContraCts); and
WHEREAS, the Arbitrator determined that the City "Shall cause the soils condition
on Disposal Site No. 2 to be remediated so that the soils on that property will be made to
conform to the terms and specifications originally agreed upon between" the Company and
City (the "Arbitrator's Decision"); and
WHEREAS, the "terms and specifications" referred to in the Arbitrator's Decision
were contained within the August 15, 1988, written agreement between the City and E.L.
Yeager Construction Co., Inc. (hereinafter the "Yeager Agreement"); and
WHEREAS, the City subsequently awarded a construction contract and entered into
professional services agreements for remedial grading at Jamboree Road Disposal Site No.
2 in order to comply with the Arbitrator's Decision (hereinafter the "Remedial Work"); and
WHEREAS, the Company has reviewed and provided comments on the Plans and
specifications for the Remedial Work, and the Company's soils consultant inspected and
reviewed the Remedial Work; and
WHEREASi the City has caused the Remedial Work to be completed to the
satisfaction of the Company and in full compliance with the Arbitrator's Decision.
NOW, THEREFORE, based on the Recitals Stated above and' in consideration of
City'S performance of the Remedial Work, the parties agree as follows:
GENERAL RELEASE
1. In consideration of the City's satisfactory performance of the Remedial Work,
receipt of which is acknowledged, the Company on behalf of itself and its successors and
assigns, hereby fully releases and discharges City, its officers, councilmembers, and
employees, and relinquishes all rights, claims, and actions that Company and its
successors now have or may have against the City, and after the execution of this Release,
arising out of the Jamboree Road Improvement Contracts, the Yeager Agreement, the
Arbitrator's Decision, and the Remedial Work.
2. (a) Company acknowledges and agrees that this release applies to all
claims for injuries, damages, or losses to Company's real property (Disposal Site No. 2),
whether those injuries, damages, or losses are known or unknown, foreseen or unforeseen,
or patent or latent that Company may have against City, and Company hereby waives the
application,of California Civil Code Section 1542.
(b) . Company certifies that it is familiar with and has read the following
provisions of California Civil Code Section 1542:
"A general release does not extend to claims
which th'e creditor does not know or suspect to
exist in his favor at the time of executing the
release, which if known by him must have
materially affected his settlement with the
debtor."
(c) Company understands and acknowledges that the significance and
consequence of this waiver of California Civil Code Section 1542 is that even if it should
eventually suffer additional damages arising out of the facts referred to in the Recitalsl it
will not be able to make any claim for those damages against City. Furthermore, Company
acknowledges that it intends these consequences even as to claims for damages that may
exist as of the date of this Release but which Company does not. know exist, and which,
if known, would materially affect Company's decision to execute this Release, regardless
of whether Company's lack of knowledge is the result of ignorance, oversight, error,
negligence, or any other cause.
3. Company warrants and represents that in executing this Release, it has relied
upon legal advice from its attorney, and that the terms of this Release and its
consequences have been completely explained to Company by that attorney, and that it
fully understands the terms of this Release.
In witness whereof, the following duly authorized representatives of the Company
and City have executed this Release on the dates set forth below..
1100-(X)028
30726_1
Dated:
J U bi 1 B 1996
THE IRVINE COMPANY,
A MICHIGAN CORPOI~~
C. Keith Greer, President
Irvine Community Builders,
a division of the irvine Company
Dated:
JUN 1 8 1996
~stant sCeaLt~
RELEASE BY SUCCESSOR IN INTEREST
Greystone Homes, Inc. ("Greystone") is a Successor-in-Interest to the Company,
having purchased (or is in the process of purchasing) Disposal Site No. 2. Greystone
agrees to be similarly bound by the Release of.the City, as stated in full above.
iEYSTO~C.
Dated:
SR. V.P. OPERKTIONS
~¥L.
CITY OF TUSTIN
By:
Tracy Wills Worley, Mayor
ATTEST:
Pamela Stoker, City Clerk
APPROVED AS TO FORM
Lois E. Jeffrey~
1100-(XX)28
30726_1