HomeMy WebLinkAbout12 CIP 7130 PHASE 1 02-17-04
AGENDA REPORT
Agenda Item
Reviewed: JË-
City Manager
Finance Director
12
MEETING DATE:
FEBRUARY 17, 2004
FROM:
WILLIAM A. HUSTON, CITY MANAGER
PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
TO:
SUBJECT:
ENVIRONMENTAL INSURANCE FOR THE NEWPORT AVENUE
EXTENSION, SR-55 NORTHBOUND RAMP RECONFIGURATION,
VALENCIA AVENUE AND DEL AMO AVENUE WIDENING PROJECT -
PHASE 1 (CIP No. 7130)
SUMMARY
City Council authorization is required to secure environmental insurance coverage for property
to be acquired for the Newport Avenue Extension, SR-55 Northbound Ramp Reconfiguration,
Valencia Avenue and Del Amo Avenue Widening Project -Phase 1 (CIP No. 7130). All
property acquired from ME Pacific Park Associates, LLC as well as the excess State property
to be acquired will be covered under the proposed environmental insurance coverage.
RECOMMENDATION
It is recommended that the City Council authorize staff to bind environmental insurance
coverage from Indian Harbor Insurance Company for property to be acquired from ME Pacific
Park Associates, LLC and from the State of California, subject to City Attorney approval of all
carrier policy terms and conditions.
FISCAL IMPACT
The policy premium for environmental insurance coverage is estimated at $164,728 plus taxes
and fees of $5,312 for a total estimated cost of $170,040. The cost of the insurance is funded
from CIP No. 7130.
BACKGROUND
The Newport Avenue Extension, SR-55 Northbound Ramp Reconfiguration, Valencia Avenue
and Del Amo Avenue Widening Project -Phase 1 (CIP No. 7130) is budgeted for construction in
FY2003-2004. The project limits are generally Edinger Avenue to the north, the Burlington
Northern and Santa Fe railway line east of Del Amo Avenue to the east, Valencia Avenue to the
south, and the SR-55 freeway to the west. This project requires right-of-way (ROW) from six (6)
properties in the form of acquisitions and/or Temporary Construction Easements (TCE) or
payment of Severance damages as follows:
Environmental Insurance for the Newport Avenue Extension, SR-55 Northbound Ramp
Reconfig u ration , Valencia Avenue And Del Amo Avenue Widening Project -Phase 1
February 17, 2004
Page 2
APN
Owner &
Description
Type of
ROW Required
430-251-001,430-251-002,
430-251-003,430-251-007,
and 430-251-008
ME Pacific Park Associates, LLC
(vacant property)
Acquisition & TCE
430-251-006 & 430-251-011
ME Pacific Park Associates, LLC
(developed property)
Acquisition & TCE
430-253-014
Catellus Finance 1, LLC.
Acquisition & TCE
430-253-12
Orange County Teachers Federal
Credit Union (developed property)
Acquisition & TCE by
Offer of Dedication
430-253-13
Orange County Teachers Federal
(vacant property)
Severance Damages
430-252-002 & 430-261-012
The Burlington Northern and
Santa Fe Railway Company (BNSF)
Acquisition by
easement deed & TCE
Almost all of the property to be acquired for the subject project is from the assessor parcels owned
by ME Pacific Park Associates, Inc. (ME) comprising the vacant property. A portion of ME's
developed property and a small portion of Catellus' and BNSF's property is also being acquired for
the subject project. Property needed from the Orange County Teachers Federal Credit Union
(OCTFCU) is being acquired from a previously recorded Offer of Dedication from their developed
property. Payment of severance damages to the OCTFCU is required due to the loss of street
frontage on Del Amo Avenue for their vacant parcel.
The Newport Avenue Extension, SR-55 Northbound Ramp Reconfiguration, Valencia Avenue and
Del Amo Avenue Widening Project - Phase 1 (CIP No. 7130) proposes to construct a new
northbound on and off ramp to the SR-55 freeway. When completed, these improvement will be
dedicated to Caltrans. Upon acceptance by Caltrans, the existing northbound on and off ramp will
become excess State property and will be dedicated to the City of Tustin.
An Initial Site Assessment for the vacant property to be acquired from ME was completed in
October 1994. The Assessment did not identify any significant hazardous waste contamination
that would affect or be affected by implementation of the subject project.
However, there is the potential for unknown hazardous contamination to be revealed during
project construction and to safeguard against the possibility of a large expenditure for
environmental clean-up, it is recommended that the City obtain environmental insurance to protect
the City against any risk.
Environmental Insurance for the Newport Avenue Extension, SR-55 Northbound Ramp
Reconfiguration, Valencia Avenue And Del Amo Avenue Widening Project -Phase 1
February 17, 2004
Page 3
The recommended insurance coverage is for the property to be acquired from ME and the State
of California and will limit the City's exposure to any unknown environmental contamination
discovered during construction, thus allowing the project to proceed in a timely manner. The
insurance policy will also provide the same coverage if any unknown environmental contamination
is discovered after project completion but within the five year term of the policy. Indian Harbor
Insurance Company has insured numerous projects for environmental contamination and
understands this business as well or better than any other carrier. They also have a lengthy
history of performing at an extremely high level for their clients (i.e. claim responses, etc.).
The policy is a 5-year policy that would provide $5,000,000 in coverage per occurrence and on the
aggregate. Coverage protects the City against third party liability claims including on-site and off-
site bodily injury and property damage; remediation expense from pollution conditions on, at or
under or emanating from the covered locations; legal defense expenses in connection with
remediation expenses, and contingent transportation expenses. There is a minimum $100,000
deductiblelretention amount.
It is recommended that the City Council authorize staff to bind environmental insurance coverage
with Indian Harbor Insurance Company for the Newport Avenue Extension, SR-55 Northbound
Ramp Reconfiguration, Valencia Avenue and Del Amo Avenue Widening Project - Phase 1(CIP
No. 7130).
~Q.~
Director of Public Works/City Engineer
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Engineering Services Manager
TDS:DRK:ccg:Environmentallnsurance for Newport Ave. Ext.doc
Attachment:
Location Map
AREAS OF INSURANCE COVERAGE
Parcel 1 - Area to be dedicated to Caltrans
Parcel
Parcel
NOTE.
PARCEL BOUNDARIES SHOWN ON THIS EXHIBIT
ARE FOR PLANNIND PURPOSES ONLY. AND ARE
SUBJECT TO CHANDE.
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on 117/09/02
-, NEWPORT AVENUE EXTENSION
AND
NB SR-55 RMiP RECONFIGURATION
CO-OP AGREEMENT EXHIBIT A
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