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HomeMy WebLinkAboutCC 5 IMPROVE JAMBOREE 6-20-88CAbEN DAR APPROVED STAFF TO: WILLIAM HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION SUBJECT: AGREEMENT WITH THE CITY OF ORANGE AND THE IRVINE COMPANY FOR THE IMPROVEMENT OF JAMBOREE ROAD BETWEEN IRVINE BOULEVARD AND ~ EXISTING CHAPMAN AVENUE RECOMMENDATION: That the City Council approve an agreement with the City of Orange and- The Irvine Company for the improvement of Jamboree Road between Irvine Boulevard and existing Chapman Avenue and authorize the Mayor and City Clerk to sign. BACKGROUND: The city Council adopted a Resolution of Intention June 13th and set a public hearing for July 18th regarding formation of Assessment District 86-2. This assessment district will include territory of East Tustin, a portion of the City of Orange, and a portion of unincorporated territory. A key element in the improvements to be constructed under AD 86-2 is the improvement of Jamboree Road between Irvine Boulevard in Tustin and existing Chapman Avenue in Orange. The total cost of this arterial highway project is estimated at over $36 million. The city of Orange will contribute $1.7 million in direct funding from an already formed assessment district in that City. This agreement provides that the City of Tustin will be the lead agency in administration of the construction of the project. The Irvine Company agrees to provide all necessary rights-of-way and easements at no cost. The Irvine Company will provide advance funding for engineering, clearing and grubbing, and a portion of the rough grading, and will be reimbursed for these costs from AD 86-2 bond monies. In the event AD 86-2 is not formed, the Jamboree Road project would not move forward, but the City of Tustin would be under no obligation to reimburse The Irvine Company for expenditures which they have previously made. The agreement has been executed by The Irvine Company and is scheduled for City of Orange City Council action on June 21st. It is anticipated that construction could begin this September and be completed in March 1990. Bob Ledendecker Director of Public Works/City Engineer Ro~ald E. Wo~rd. Engineering Mervlces Manager R OVEMENT OF JAMBOREE ROAD BE /~ IRVINE BOULEVARD AND EXISTING CHAPMAN AVENUE THIS AGRa, is made and entered into, to be effective this day of , 1988, by and among: CITY OF TUSTIN, a municipal corporation, hereinafter referred to as "TUSTIN"; CITY OF ORANGE, a municipal corporation, hereinafter referred to as "ORANGE"; THE IRVINE CC~PANY, a Michigan corporation, hereinafter referred to as "OOMPANY". RECITALS: WHEREAS, Company is owner and developer of land in the East Tustin area of the City of Tustin, East Orange area of the City of Orange and unincorporated territory of Orange County located between the two cities; and WHEREAS, in conjunction with development of Company's land and other land, the East Tustin Specific Plan was approved by Tustin; and WHEREAS, the East Tustin Specific Plan proposed a North-South road to be constructed to major arterial highway standards between the Santa Ana (I-5) Freeway and Tustin Ranch Road and to primary arterial highway standards between Tustin Ranch Road and Chapman Avenue as it is 1046 Page 1 located on the date his Agreement (hereinafter- ~red to as "Existing Chapman Avenue"), with provision for posslole future upgra~ to a major arterial, the general location of said proposed North-South road (now known as and hereinafter referred to in this A~/re~t as "Jamboree Road") is shown on the map attached hereto as Exhibit "A" and incorporated herein as though fully set forth; and WHEREAS, Orange has approved development of the area known as "Santiago Hills" including formation of Assessment District 86-1 (Orange) which provides funding for a portion of Jamboree Road · o (described in the 86-1 Agreement as Weir Canyon Road, which was the name given to such portion of Jamboree Road in the County Master Plan of Arterial Highways); and WHEREAS, Tustin and Company have previously entered into a reimbursement agreement and bonds have been sold for Assessment District 85-1 (Tustin) to provide funding for the design and construction of Jamboree Road from I-5 freeway to Irvine Boulevard; and WHEREAS, Company has filed a petition with Tustin requesting formation of Assessment District 86-2 (Tustin) to provide additional funding for the portions of the Jamboree Road construction from Irvine Boulevard to Existing Chapman Avenue which are not covered by Assessment District 86-1 (Orange); and Page 2 WHEREAS, pur~ ~o ~Annexation No. 374 in tbs' ,y of Orange, portions of the unincorporated area of Orange County where Jamboree Road will be constructed have been annexed into the City of Orange; and WHEREAS, it is now the desire of the parties hereto to enter into a cooperative agreement to provide for the method of furmling the preparation of improv~t plans, specifications and bid documents and for the construction and subsequent maintenance of the segment of Jamboree Road and associated improvements located between Irvine Boulevard and Existing Chapman Avenue, hereinafter referred to as' t~e "Project;" and WHEREAS, the present estimated cost for design and construction of the Project, including all engineering, contingencies and incidental e~penses, is approximately thirty-four million three hundred seventy-six thousand two hundred forty-five dollars ($34,376,245) as shown on Exhibit "B;" and WHEREAS, action was taken by Tustin on July 6, 1987 and by Orange on August 25, 1987 to approve Environmental Impact Report No. 87-1 for Jamboree Road, and all necessary environmental documents for the Project have been conloleted in ommpliance with the California Environmental Quality Act (CEQA); and WHHRREAS, Cont0any has engaged the services of a civil engineering firm and other consul~ts for the preparation of plans, specifications and estimates (PS&E) for construction of the Project. Page NOW, THEREFOF consideration of the muttv~ .¢enants and agreements hereinafter set forth, the parties agree as follows: SECTION 1: Public Agency Responsibilities Tustin shall act as the agency responsible for a~lishing and completing the Project. Such responsibility shall include approval of the PS&E, bid advertising, administration of construction contracts, securing of necessary public agency permi~ (including any permit~ required by the County of Orange), construction inspection and ' ° acceptance of Project improvements on behalf of all parties, including portions of Project within Orange, except that: (a) Orange shall review and approve PS&E for the portions of the Project within the boundaries of Orange, and b) Orange shall design and inspect any traffic signals required in connection with the Project within the jurisdiction of Orange. Tustin shall provide regular status reports to the other parties regarding the progress of the Project. Tustin also agrees to notify all parties of material changes and/or construction change orders affecting the Project design, cost or completion schedule. Page 4 Orange shall f ..~ate with and assist Tustir ~11 respects to carry out its responsibilities for completion of the Project, including review and approval of PS&E, issuance of permits, inspection and acceptance of rights-of-way and improvements as specified herein. Upon completion of the Project, Orange and Tustin each agree to accept dedication of the Project improvements located within its jurisdiction, as well as main~ce responsibility for the Project improvements as provided in Section 16 below. SECTION 2: Consent of Jurisdiction Orange hereby consents and delegates to Tustin the responsibility for preparation of the PS&E, inspection during construction, and acceptance of the portions of the Project which are located within the jurisdiction of Orange. SECTION 3: Review of Plans/Pro_~ect Desiqn Tustin shall review and approve PS&E for the Project with respect to improvements within Tustin and contract documents for the entire Project on behalf of the parties hereto. Orange shall review and approve PS&E for the Project improvements within the jurisdiction of Orange o Page 5 SECTION 4: _C/~- .'mation with County. Tustin shall be responsible for coordinating and handling all Project-related matters with the County of Orange. Such coordination shall include, but not be limited to: (a) Obtaining County review of plans for modifications to Santiago Canyon Road and conformance with CEQA; (b) Obtaining a consent of jurisdiction from County for ' ° construction of the Project and formation of Assessment District 86-2 over any lands within the jurisdiction of County affected by the Project; (c) Obtaining necessary grading, encroachmant and construction permits from County for any Project work within unincorporated areas of County and adjacent to County's Peters Canyon Regional Park; and (d) Upon completion of the Project, obtaining County's acceptance of maintenance and repair responsibility for the Project improvements affecting Santiago County Road within unincorporated portions of the County. Page 6 SECTION .;ion of Easements/Rights-of' ~y shall dedicate with no monetary consideration all necessary easements and rights-of-way (including slope easements) for the Project to Tustin, Orange and Orange County for improv~ts within the respective jurisdiction of Tustin, Orange and Orange County, as the case may be. Said dedications will be subject to existing easements and matters of record. Company agrees that, except for the easement to the East Orange County Water District for its two relocated water lines serving the filtration plant east of Jamboree Road, any new easements within the Project area conveyed after the date of this agreement shall be made subord/nate to the proposed street easement for Jamboree Road. As part of Project incidentals, Company shall provide necessary right-of-way maps and legal descriptions prepared by a registered civil engineer or land surveyor and convey easements in a form mutually acceptable to the Company and the party receiving such easement. A title report shall be prepared and submitted to Tustin for all parcels to be conveyed. No title insurance shall be required. SECTION 6: Review of Bids and Award of Contracts Prior to the advertisement for bids for any contract related to the Project, Ommpany shall have fifteen (15) days to review and ~t upon the notice inviting bids and the proposed contract documents. After the receipt of bids and prior to any award of any such contracts by Tustin, ~y shall have fifteen (15) days to review and ccmm~nt upon the bids. Company agrees that any such contracts which are awarded by the City may be extended in time or modified, in whole or in Page 7 part, upon prior wr'i ~i notice to company allowirr' _easonable period within which Company may approve or disapprove such extension or modification. Company will remain bound under this Agreement notwiths~ any extension of time or modification or failure of Tustin to give such notice; provided, however, that the scope and costs of the Project improvements shall not be materially ex--ed by such extension or modification beyond the description of the Project imp~~ts as specified in the 86-1 Agreement and 86-2 ~t (as defined in Section 6 below) and estimated costs therefor as shown on Exhibit "B" unless previously approved in writing by Company. · ° SECTION 7: Funding of Construction Costs. The total cost of construction of the Project is presently estimated to be $34,376,245, as shown on Exhibit "B." The parties contemplate that all of the costs of the Project shall be paid through financing in place or being arranged under Assessment District 86-1 (Orange) and Assessment District 86-2 (Tustin). The agreements for each such district are entitled, respectively, "Acquisition/Financing Agreement for Infrastructure Improvements, City of Orange Assessment District 86-1," dated as of September 2, 1986 (hereinafter referred~to as the "86-1 Agreement"), and "Agreement for Payment of Costs for Infrastructure Imp~~ts, East Tustin Assessment District 86-2," dated as of Dec~mber 15, 1986 (hereinafter referred to as the "86-2 Agreement"), as such agreements may be amended from time to time. However, to the extent that construction costs of the Project exceed available Assessment District funding, the Company shall be responsible to pay such excess costs. Page 8 SECTION 8: _P ~ts by company. With respect to advances or payments by Company for construction costs under the 86-1 Agreement and the 86-2 Agreement, such advances or payments shall be in the amounts and at the times as provided in such agreements. To the extent that Project construction costs exceed available Assessment District funding, Company agrees that this Agreement constitutes a guarantee of (a) payment of normal progress payments within thirty (30) calendar days following Company's receipt of requests for such payments by Tustin together with adequate · · documentation substantiating such requests, and (b) payment in full upon completion of the Project and final cost accounting and demand therefor by Tustin. Within thirty (30) calendar days after receipt by Company of each request and supporting documentation, ~y will pay to Tustin the amount shown on such bill or bills which is supported by the documentation. Tustin will make financial and accounting records related to the contracts for Project improvements available to ~y upon reasonable notice. SECTION 9: Payments by O~_e. Orange shall be responsible for payment of costs for h~alf-width improvements for Jamboree Road within the jurisdiction of Orange as specified in the 86-1 Agreement (for improvements relating to Weir Canyon Road) and which are described in the estimated costs on Exhibit "B." Said payments will be made by Orange to Tustin within thirty (30) calendar days after Orange's receipt of a request by Tustin for payment. The total amount of Orange's payments to Tustin for the Page 9 Project improver~' .1 be adjusted promptly aft~~ '~,~pletion of the Project. The adjustment will be based upon the actual cost of the Project imp~emants. Any payments by Orange for such improvements will be made solely from Assessment District proceeds (i. e., not from city of Orange General Fund or gas tax monies). SECTION 10: Assessment District Formation After the formation of the assessment districts and sale of the bonds by such districts, Company's financial responsibilities undeI-the terms of this Agreement shall be reduced correspondingly to the extent that funding for portions or all of the Project are provided by such assessment districts. SECTION 11: Reimbursement to Company Tustin shall, to the extent legally permissible, reimburse ~y in accordance with the 86-2 Agreement and a~_v~tme~ts thereto, for all funds advanced by Company for the Project at such time and to such extent that Tustin has received the proceeds from the sale of assessment district bonds for the Project. If Tustin has expended all available assessment district bond proceeds prior to completion of the Project, Tustin shall, within three months of completion of the Project, prepare a final accounting of all Project ex~m2xiitures and credits · _ Page 10 and, promptly thereafter bill Co~y for any work not previously billed or reimburse Company any funds due ~y, as the case may be. SECTION 12: Improvements Constructed by Company Upon approval by Tustin Director of Public Works and in accord_a_nce with either (a) the provisions of the 86-2 Agreement regarding construction of certain improvements by Company prior to Tustin's adoption of the Resolution of Intention for formation of · Assessment District 86-2, or (b) its rights as property owner under Public Contracts Code Section 20485, Company may undertake ~letion of portions of Project as deemed to be mutually advantageous for cost and scheduling reasons. Said improvements may include, but are not limited to, rough grading and earthwork within proposed Project limits, installation of drainage facilities and other substructures. It is mutually agreed that the costs of such work shall be accounted for by Company and included in reimbursements to Company pursuant to the 86-2 Agreement and Section 11 above. SECTION 13: Project Completion It is the desire of all parties to this Agreement to complete construction of the Project at the earliest possible date in view of the overall traffic benefits it will provide to existing and future residents of Tustin and Orange. Therefore, the parties agree to exercise their best efforts to commence construction by September 1988 and complete construction by March 1990. Page 11 SECTION14: ?-~ ~ctAccess/Inspection At all times during the progress of Project construction, Orange shall have access to the work. If Orange deems any remedial measures to be necessary, Tustin shall be notified thereof. SECTION 15: Acceptance of Improvements Upon request by Tustin, Orange shall review the completed construction of Project within the jurisdiction of Orange and shall, give Tustin approval to accept improvements within the territory of Orange. Orange agrees that approval shall be withheld only for work not completed in accordance with the approved plans and specifications. SECTION 16: Maintenance and Repair Responsibility Upon Tustin's acceptance of the improvements under the construction contract(s), Orange and Tustin shall each accept responsibility for the maintenance and repair of the Project improvements as follows: (a) Orange shall be responsible for maintenance and repair of (i) the structural integrity of all Cut and fill slopes required for Jamboree Road construction which are located within the portions of Peters Canyon Regional Park adjacent to the Jamboree Road right-of-way, and (ii) all Project improvements within the Jamboree Road right-of-way -- as well as all cut and fill slopes required for Jamboree Road construction lying outside of and adjacent to the right-of-way -- which Page 12 are located north c~ ...~ soUtherly boundary (the "S~ ~_rly Annexation Boundary") of the ar~a annexed into Orange pursuant to Annexation No. 374 as shown on Exhibit "A," but not for Project improvements for which County is responsible (such as landscaping within Peters Canyon Regional Park or Santiago Canyon Road improvements within unincorporated portions of the County); provided, however, that Orange shall not be liable for injuries or damages resulting fr~m any structural or earth failure caused by any landscaping installation or maintenance which is performed by the County of Orange; and (b) Tustin shall be responsible for maintenance and repair of all Project i~provements within the Jamboree Road right-of-way -- as well as all cut and fill slopes required for Jamboree Road construction lying outside of and adjacent to the right-of-way -- which are located south of the Southerly Annexation Boundazy. SECTION 17: Insurance Tustin agrees that any construction contract entered into between Tustin and any contractor for the purpose of construction of the Project shall require the contractor to obtain and maintain, until the c~mpletion of the improvements, liability insurance in the minimum amounts shown on the insurance table' attached hereto as Exhibit "C" and incorporated herein as though fully set forth, naming Tustin, Orange and Company as additional insureds under the policy or policies providing such insurance coverage. Written proof of such insurance a~d the naming of the above additional insureds shall be provided to the parties before commencement of construction of Project. Page 13 ~ SECTION 18: ?-' ],mification ~' Each party to this Agreement agrees to indemnify, defend and hold the other parties, their governing bodies, officers, directors, employees and stockholders harmless from and against all liabilities, losses, demands, actions, expenses or claims, including, but not limited to, attorneys' fees and court costs, for injury to or death of any person or for damages to any property, arising out of or in any manner connected to a party's performance or activities conducted pur~_ant to this Agreement. · ° No party to this Agreement, nor any officer or employee thereof, shall be responsible for any d_a_mage or liability occurrir~ by reason of anything done or omitted by another party with regard to administration of this Agreement and/or construction related to the Project. SECTION 19: Attorneys' Fees In the event that any action is instituted by any of the parties for the purpose of enforcing the terms and provisions of this B~/reement, the prevailing party in such action shall be entitled to recover from the breaching party or parties any reasonable attorneys' fees and costs incurred by the prevailing party. SECTION 20: Project Modification or Termination It is mutually agreed that assessment district fxunding is essential for the construction of the Project as presently designed and Page 14 proposed. In the ~'-~ /that prior to the award by ' .in of any construction contracu for the Project, (a) formation of Assessment District 86-2 (Tustin) for the funding of the Project has not been ccm~leted or has been denied for any reason, or (b) confirmation of the assessments and sale of bonds has not occurred, Onmpany shall have the option of: (2) Instructing Tustin to postpone award of any construction contract pending formation of Assessment District 86-2; · ~ Reducing the scope of the Project to reduce the cost of construction; (3) Terminating this Agreement prior to the award of any construction contracts for the Project; or (4) Terminating this Agreement as to the award of any future construction contracts for the Project. In the event of such termination, Company shall pay Tustin for all costs incurred up to the date of City's receipt of the notice of termination pursuant to the terms of the 86-2 Agreement. None of the preceding options shall relieve ~y fr~m its obligations and responsibilities to comply with all conditions of approval for approved subdivision maps either in Tustin or Orange as related to the construction of Jamboree Road. Page 15 ~ SECTION 21: Any notices or other communications to be given pursuant to this Agreement shall be effective when received if sent other than by mail, and if sent by registered or certified mail to addresses set forth for each party below, postage prepaid, shall be presumed effective two (2) business days after deposit in the United States mail. Copy to : City of Tustin Director of Public Works 300 Centennial Way Tustin, CA 92680 James G. Rourke, Esq. City Attorney 3OO Centennial Way Tustin, CA 92680 ~Orange: City of Orange Director of Public Works 300 East Chapman Avenue Orange, CA 92666 Furman Roberts, Esq. City Attorney 300 East Cha~an Avenue Orange, CA 92666 The Irvine Company 550 Newport Center Drive Newport Beach, CA 92660 Attention: President Irvine C~ty Development General Counsel Irvine Community Development Company 550 Newport Center Drive Newport Beach, CA 92660 SECTION 22: Execution The signatories hereto represent that they have been appropriately authorized to enter into this Agreement on behalf of the party for whom they sign. Page 16 IN WITNESS WF~ .', Said parties have execute' the dates hereinafter written. _ts Agreement on Mayor City Clerk FURMAN RDBER~S CITY ATTORNEY CITY OF ORANGE E~ rive Vi~ce/President ~istant Secretary LEGAL COUNS~. FOR Page 17 ~ SCHEUJLE OF EXHIBITS EXHIBIT "A" - Location of North-South Road EXHIBIT "B" - Estimated Design and Construction Cost for Project EXHIBIT "C" - Insurance Requirements EXHIBIT "B" PP3~.TMINARY ~T~TIMA~ JAMBOREE~AD-IRVINE~~ ~STINGCHAPMANAVENUE OONSTRUCITON Total Construction ................. $25,279,000 Total Contingencies (21%) ............. 5,332,000 Total Incidentals ................. 5,487,000 Project Subtotal .................. 36,098,000 Less: AD 86-1 (Orange) Portion ........... (1,721,725) Grand Total .................... 34,376,245 Note: Certain assessment district costs (e.g., reserves and marketing) have not been included in the above estimates. IRVINE LAK~ OF ANNEXATION BOUNDARY COUNTY OF ORANGE PROJECT LIMITS COUNTY OF ORANGE IRVINE :ITY OF TUSTIN uJ uJ IOULEVARD FREEWAY AVENUE MUNICIPAL JURISDICTIONS EXHIBIT 'A' ,< O NO S(~ALE Total Cor~-trL~:i~n ................. $25.279.000 TOtal Contir~3e~cies (21%) ............. 5,332.000 Total Incidentals ................. 5.487.000 Project Subtotal .................. 36.098.000 Less: AD 86-1 (Ox'aT.e) Portion ........... (1.721.725) Grar~ Total .................... 34.376,245 ,. INSURAItC[ R£QUIRH[NTS FOR PUBLIC IIORI~; COIG'TRUCTIOtl CONTRACTS · ESTIMATED CONTRACT AHOUNT Up to SO0.OO0 . iii 500,000 to l,O00,O00 1,000,000 to S,O00,O00 S,O00,O00 to 10.000,000 Over 10o000~000 SINGLE LIMIT INSURANCE REQUIREMENT RISK LEVEL 1 · $1,000,000 2,000,000 3,000,000 4,000,000 S,O00,O00 RISK LEVEL 2 $2,000,000 3,000,000 4,000,000 S,O00,O00 S,O00,O00 / Rtsk Le.vel No. 2 ftgures should always be used ~here any on._~e of the'folloWing factors are present: · I. ¥or~ tn Iny street c& .rrytng volu~s exceedfng. 10.OO0 ADT. · b. Mort ~th excavations deeper thin IS feet. c,, 14ort wtth structures htgher thin IS feet. d. Any other cond. ttton the project engtneer may feel to be a htgher than tatn(mil rtsk. . Any unusual conditions should be d?scussed wtth the Engineering Servlces 14anager ~*ho wt11 then'seek idvtce from the City,Attorney.