HomeMy WebLinkAboutCC 12 JAMBOREE RD. 10-01-90o
CONSENT CALENDAR NO. 12
10-1-90
llwole)o DATE: SEPTEMBER 26, 1990 Inter - Com
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
SUBJECT: JAMBOREE ROAD BETWEEN EDINGER AND BARRANCA PARKWAY
RECOMMENDATION:
That the Tustin City Council approve the Jamboree Road right-of-way Reimbursement
Agreement and authorize the Mayor to execute said agreeement subject to the City
Attorney's final approval; and authorize a supplemental budget appropriation in
the amount of $84,765 to the 1990-91 Capital Improvement Program.
BACKGROUND:
The Jamboree Road project between Edinger Avenue and Barranca Parkway is a cooperative
project between the City of Irvine, the Irvine Company and the City of Tustin. Both
the estimated right-of-way and construction costs are shared as follows:
ESTIMATED ESTIMATED TOTAL
AGENCY SHARE R/W COST CONST. COST PROJECT COST
City of Irvine 46%
Irvine Company 36%
City of Tustin 18%
TOTALS
$ 5,660,300
4,429,800
2,214,900
$ 7,601,625 $ 13,261,925
5.949,098 10,378,898
2,974,549 5,189,449
$12,305.000 $16,525,272 $ 28,830,272
DISCUSSION:
It has been determined that Tustin cannot cash-flow its right-of-way cost in the
estimated amount of $2,214,900 prior to the completion of construction. Irvine
Company has offered to enter into a reimbursement agreement with the City under
the following general terms:
Term of payback agreement shall be seven years.
Interest on the balance shall be at the rate of earnings of the State of
California Local Agency Investment Fund administered by the State Treasurer.
Initial payment per this agreement will be $429,065 and will be due in
October, 1990, with the final payment due in October, 1996.
The purpose of this agreement is to enable the City to apply all available funding
to the construction of the road and other project costs.
rhe City Attorney's office is currently reviewing this document.
This agreement will be presented to the Irvine Company Board of Directors for their
final approval. The Irvine Company staff is in concurrence with this agreement and
is recommending approval of same by their Board of Directors.
The City has currently budgeted in 1990-91, $344,300 for the Jamboree Road right-of-way
reimbursement. The execution of this agreement will require a supplement appropriation
in the amount of $84,765 to the 1990-91 Capital Improvement budget.
/J-. , , W. /, f
AIR Bob Ledendecke
Director Public Work ity Engineer
BL:ccg
cc: Ron Nault, Finance Director
AGREEMENT FOR RIGHT-OF-WAY REIMBURSEMENT
JAMBOREE ROAD-BARRANCA PARKWAY TO EDINGER AVENUE
This Agreement is made this day of
1990 between the City of Tustin (Tustin), a municipal corporation
of the State of California and The Irvine Company (Company), a
Michigan corporation.
WHEREAS, the parties hereto, by agreement dated July 9, 1985,
agreed to cooperate, along with the City of Irvine ("Irvine"), in
the implementation of a project for construction and related
improvements of Jamboree Road through the Tustin United States
Marine Corps Air Station (the "Project"); and
WHEREAS, the parties subsequently entered into a Road Funding
Agreement with Irvine on June 10, 1986 and agreed to a formula for
sharing the cost of the Project, including right-of-way
acquisition, relocation of helicopter facilities, roadway
construction and other components; and
WHEREAS, pursuant to said agreements Company has acquired a
right-of-way from the Department of the Navy on behalf of Tustin
and Irvine through the Tustin United States Marine Corps Air
Station and provided rights of entry to Tustin for construction of
the Project on August 21, 1989; and
WHEREAS, Tustin does not have sufficient funds to pay its
total cost percentage share of the right-of-way at the present
time, but is able to pay such costs over a specified period of
time; and
1
WHEREAS, the parties desire to proceed with completion of the
Project and Tustin has awarded a contract for Project road
construction.
NOW, THEREFORE, based on the above premises and the mutual
covenants herein, the parties hereby agree to the following terms
and conditions in order to expedite Project completion:
1. Pursuant to the June 10, 1986 Road Funding Agreement,
Tustin's cost share percentage of the Project is 18 percent, which
in terms of actual dollars, including right-of-way costs, is an
estimated $51189,449. This estimate is projected on the table
attached hereto as Exhibit "A".
2. Tustin agrees to pay and contribute its 18 percent cost
share of the Project, excluding right-of-way costs, concurrent with
construction in the form of construction progress payments.
3. Based upon preliminary analysis, the total cost of the
right-of-way acquired by and paid by Company is estimated to be
$12,305,000. Tustin's 18 percent cost share thereof is $2,214,900.
4. Company agrees to defer any right to reimbursement from
Tustin for Tustin's cost share percentage of the right-of-way so
that all available funding from Tustin may be applied to
construction of the Project.
5. Tustin shall reimburse Company for Tustin's 18 percent
cost share of the right-of-way in the following manner:
A. Tustin shall make seven approximately equal payments,
which include interest, beginning on October 1, 1990,
with each succeeding payment due on or before October 1
2
of each year thereafter until fully paid. Based on the
estimate of Tustin's cost share of the right-of-way at
$2,214,990, the first payment is estimated to total
$429,065.
B. Interest on the unpaid balance shall accrue from October
11 1989, and shall be calculated in the same manner as
and based upon the rate of earnings of the Local Agency
Investment Fund, as published monthly by the State of
California.
C. The entire unpaid balance of Tustin's cost share
percentage of the right-of-way shall be due and payable
on October 1, 1996. Tustin may pay the unpaid balance
prior to October 1, 1996, without prepayment penalty.
6. At such time as Caltrans completes its review of the
right-of-way appraisals and documents and authorizes the transfer
of deeds, Tustin shall confirm the right-of-way value in writing
to Company and Company shall confirm its acceptance and forthwith
deliver executed road easements to Tustin. Any resulting
adjustments in the right-of-way value and interest due shall be
made in the final payment by Tustin or shall be due from Company
if Tustin has overpaid. Tustin and Company mutually agree to
cooperate in completing the right-of-way process prior to opening
of the Project to public use.
7. Nothing herein shall change or modify the basic cost
allocation to the parties for Project as previously agreed.
8. Each party represents that they have been duly authorized
3
to enter into this Agreement on behalf of the party for whom they
sign.
"TUSTIN" CITY OF TUSTIN
APPROVED AS TO FORM:
JAMES G. ROURKE
CITY ATTORNEY
"COMPANY" THE IRVINE COMPANY
dba IRVINE COMMUNITY BUILDERS
By
By
DAD:cj♦:R:9/25/90(S\1332.rr)
4
C. Keith Greer
President
Irvine Community Builders
James R. Cavanaugh
Assistant Secretary
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