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HomeMy WebLinkAbout04 AG SCE CIP 7130 11-15-04 AGENDA REPORT Agenda Item 4 Reviewed: ~ City Manager Finance Director MEETING DATE: NOVEMBER 15, 2004 TO: WilLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION SUBJECT: APPROVAL OF AN AGREEMENT FOR REPLACEMENT OF OVERHEAD WITH UNDERGROUND ELECTRICAL FACILITIES WITH SOUTHERN CALIFORNIA EDISON COMPANY IN CONJUNCTION WITH THE NEWPORT AVENUE EXTENSION/SR-55 RAMP RECONFIGURATION PROJECT (CIP NO. 7130) SUMMARY The Agreement for replacement of overhead with underground electrical facilities with Southern California Edison Company outlines the obligations of the City of Tustin and Southern California Edison Company to underground a portion of the existing overhead transmission facilities on Del Amo Avenue funded under Rule 20B. These facilities are within Underground Utility District No. 03-01. RECOMMENDATION It is recommended that the City Council approve the Agreement for replacement of overhead with underground electrical facilities with Southern California Edison Company, and authorize the Mayor and City Clerk to execute the Agreement on behalf of the City. FISCAL IMPACT The estimated cost of undergrounding the existing overhead transmission facilities on Del Amo Avenue under the Rule 20B Program is $867,984.30. The adopted Capital Improvement Program (CIP) for fiscal year 2004-2005 provides $11,141,838 for construction and contract administration for the Newport Avenue Extension/SR-55 Ramp Reconfiguration Project (CIP No. 7130), including funds for undergrounding Rule 20B overhead utilities. Project funding consists of Measure "M" Turnback funds, Measure "M" Competitive funds, Water CIP funds, Developer Bond funds, Developer Cash Payment funds, and Tustin Community Redevelopment Agency-South Central funds. BACKGROUND In conjunction with the Newport Avenue Extension/SR-55 Ramp Reconfiguration Project (CIP No. 7130), Southern California Edison will underground all existing distribution and transmission overhead utilities on Del Amo Avenue and on Edinger Avenue. Approval of an Agreement for Replacement of Overhead with Underground Electrical Facilities with Southern California Edison Company in Conjunction with the Newport Avenue Extension/SR-55 Ramp Reconfiguration Project (CIP No. 7130) November 15, 2004 Page 2 On November 17, 2003, the City Council adopted Resolution 03-129 which established Underground Utility District Nos. 03-01 and 03-02 within the area of the City generally bounded by Edinger Avenue on the north, the Burlington Northern and Santa Fe railroad spur line east of Del Amo Avenue on the east, Valencia Avenue on the south, and State Route 55 on the west. Underground Utility District No. 03-01 provides for undergrounding of all overhead distribution facilities and a portion of the overhead transmission facilities. The cost of constructing these improvements will be funded by the City (Rule 20B funds). Underground Utility District No. 03-02 provides for undergrounding of the remaining overhead transmission facilities and will be funded with Rule 20A funds provided by Southern California Edison. Rule 20A funds currently available from Southern California Edison are sufficient to fund only a portion of the underground costs for the transmission facilities. DISCUSSION The subject Agreement covers the undergrounding of the transmission facilities funded by the City (Rule 20B). The Agreement outlines the work to be performed by Southern California Edison and the City of Tustin, the terms and method of payment for undergrounding the overhead facilities and replacement rights. The City Attorney has reviewed and approved the Agreement "As To Form". ~R~:; /!. ~ Director of Public Works/City Engineer ~df~ Engineering Services Manager Attachment: Agreement for Replacement of Overhead with Underground Electrical Facilities TDS: DRK: cog: Approval of Agmt to replace overhead with underground electrical.doc AGREEMENT FOR REPLACEMENT OF OVERHEAD WITH UNDERGROUND ELECTRICAL FACILITIES THIS AGREEMENT, made this- day of 2004 between SOUTHERN CALIFORNIA EDISON COMPANY, a corporation, hereinafter called "SCE" and the CITY OF TUSTIN, a municipal corporation hereinafter referred to as "CITY," WITNESSETH: WHEREAS, CITY has requested SCE to replace SCE'S existing overhead 66 kV transmission lines and appurtenant facilities (hereinafter referred to as Electrical Facilities) with underground facilities to accommodate the development of CITY; said facilities to be placed underground along the new Newport Avenue, in the City of Tustin, County of Orange, State of California, as shown on the map marked "Exhibit A" attached hereto and made a part hereof; hereinafter referred to as Project Area; and WHEREAS, SCE is the holder of certain easements for its existing lines and appurtenant facilities; and WHEREAS, CITY has requested SCE to furnish and install the pads and vaults for transformers and associated equipment, conduits, ducts, boxes, (and electrolier bases) and to perform other work related to structures and substructures including breaking pavement, trenching, backfilling, and repaving required in connection with installation of the underground system; and WHEREAS, CITY has agreed to pay SCE the sum hereinafter set forth to relocate, underground, all transmission facilities within the Project Area; said costs having been determined by SCE'S standard accounting practices and in accordance with CPUC Rule 20B; NOW, THEREFORE, it is mutually agreed by and between SCE and CITY as follows, viz.: 1. RELOCATION OF ELECTRlCAL FACILITIES. SCE shall relocate and underground said Electrical Facilities within the Project Area in accordance with the schedule herein. 2. WORK TO BE PERFORMED BY SCE. a) SCE shall procure and install all materials, ducts and substructures, and provide all engineering and work related to the relocation of said Electrical Facilities. b) SCE shall remove its overhead Electrical Facilities after the underground facilities replacing said overhead facilities have been installed, energized, and placed into permanent service. c) SCE shall prepare the Joint Use Agreement and Grant of Easement and all other documents for replacement rights and clearance of encumbrance matters which could prevent or interfere with SCE'S use of the easement area to be granted. d) Said underground Electrical Facilities will be and will remain the property of SCE, who will be responsible for all further modifications and/ or maintenance. e) SCE shall obtain, ifrequired, California Public Utility Commission Permits. f) SCE shall secure necessary State Highway Crossing Agreements. -1- 3. WORK TO BE PERFORMED BY CITY. 4. a) CITY, at no cost to SCE, but with SCE'S cooperation, shall provide SCE with any required street improvement or site plans reflecting the location of all existing and proposed underground structures andjorfacilities. b) CITY, at no cost to SCE, but with SCE'S cooperation, shall comply with the requirements of the California Environmental Quality Act (CEQA) and shall prepare any and all Environmental Impact Reports which may be required by any Agency havingjurisdiction by Law. c) CITY shall assume all costs for preparation of documents as defined in item 2c, above. d) CITY, at no cost to SCE, shall grantjsecure all replacement rights and other documents required by SCE and in a form acceptable to SCE to effect the relocation of its facilities and to clear all encumbrance matters. e) CITY will pay to SCE, concurrently with the execution of this agreement, the estimated cost of furnishing and installing the underground structures and substructures, including breaking of pavement, trenching, bacldilling, and paving required in connection with installation of the two 66 kV transmisaion underground system, (within one vault) and the excess, if any, of the estimated costs, exclusive of transformers, meters and services, of completing the underground system over building a new equivalent overhead system. There is no credit for salvage. f) CITY to pay for cost and installation by SCE of one specially designed steel pole at the Southerly termination of the 66 kV transmission underground system. COST OF DESIGN, ENGINEERING AND TOTAL COST ESTIMATES. SCE hereby acknowledges receipt of a $25,000.00 engineering advance, which shall be credited to those costs SCE has incurred and will incur in the future for the work of design, engineering, cost estimates and material for the relocation of Electrical Facilities and the cost of construction, which includes the amount set forth in Item 5 on Page No.2 of this Agreement. 5. TERMS AND METHOD OF PAYMENT. CITY shall pay to SCE the estimated sum of $867,984.30 minus the $25,000.00 engineering deposit received upon the execution of this Agreement, which sum shall be credited to those costs and expenses SCE has incurred and will incur in the future for the design, engineering and construction required to relocate and underground its Electrical Facilities. Upon completion of all relocation work by SCE, CITY shall be presented with final accounting as determined by SCE'S standard accounting practices and in accordance with CPUC Rule 208 procedures. Should the sum of SCE'S costs and expenses exceed the estimated sum paid by CITY as provided by herein, CITY shall pay to SCE the difference between said sums. Should the estimated sum paid by CITY to SCE, as provided herein, exceed the sum of SCE'S costs and expenses, SCE shall refund to -CITY the difference between said sums. 6. ADDITIONAL WORK. If SCE is required to relocate any facilities other than the work to be performed as set forth in Section 2, such additional work shall be performed on a completed cost basis at CITY'S sole expense. -2- 7. REPLACEMENT RlGHT OF WAY. CITY agrees to furnish or cause to be furnished all necessary replacement rights comparable to SCE'S existing rights at no cost to SCE and all necessary access for SCE'S permanently relocated Electrical Facilities. SCE will not begin construction until all required replacement rights have been executed andjor committed to, in writing, and presented to SCE. 8. PARKING. Parking within the easement area shall not be permitted except in those locations and under such conditions as determined by SCE. Under no circumstances shall parking be permitted by SCE to allow CI'IY to meet the requirement of any parking or zoning ordinance. 9. SCHEDULE OF WORK. SCE proposes to have the relocated Electrical Facilities in operation by CI'IY contingent upon mutually acceptable schedules, the timely obtaining of permits, licenses and other documents, outages or other key items and not being delayed by those uncontrollable forces described in Item 12 herein. Completion date is subject to SCE obtaining receipt of a signed Agreement from the CI'IY by November 30, 2004. 10. FACILITIES TO REMAIN PROPERTY OF SCE. All Electrical Facilities and appurtenances thereto installed by SCE under this Agreement shall at all times be and remain the property of SCE. 11. INDEMNIFICATION CLAUSE. CI'IY agrees, for itself, and for its and their agents, contractors, and employees, to save harmless and indemnify SCE, its officers, agents and employees, and its successors and assigns, from and against all claims, loss, damage, actions, causes of actions, expense andj or liability arising from or growing out of loss or damage to property, including SCE'S own personal property, (collectively "liahility") or injmy to or death of persons, including employees of SCE resulting in any manner whatsoever, directly or indirectly, by reason of this agreement for replacement of overhead with underground Electrical Facilities or the use of or occupancy of said Project Area by CITY, its agents, and employees, invitees, successors and assigns except that City's indemnity obligation shall not extend to liability due to SCE's sole active negligence or wi11fu1 misconduct. 12. DELAY DUE TO UNCONTROLLABLE FORCES. SCE shall not be responsible for any delay in their performance hereunder, including, but not limited to, SCE'S relocation of Electrical Facilities and related work under this Agreement resulting from shortage of labor or materials, delivery delays, major equipment breakdown, load management, strikes, labor disturbances, war, riot, insurrection, civil disturbance, weather conditions, epidemic, quarantine restriction, sabotage, act of public enemy, earthquake, governmental rule, regulation or order, including orders or judgments of any court or commission, requirement of additional or separate Environmental Impact Reports requested by the California Public Utilities Commission (CPUC), delay in receiving a Certificate of Public Convenience and Necessity from the CPUC, delay in obtaining necessary rights of way, act of God or any cause or conditions beyond the control of SCE or CI'IY. 13. PERMITS, CODES AND STATUTES. SCE'S relocation of Electrical Facilities shall comply with the various applicable statutes, codes, regulations and ordinances and specifically in accordance with CPUC Rule 208. -3- 14. JURISDICTION OF PUBLIC UTILITIES COMMISSION. This Agreement shall at all times be subject to such changes or modifications as the California Public Utilities Commission may, from time to time, direct in the exercise of its jurisdiction pursuant to the authority conferred upon it by Law. 15. CHANGES. Any changes to this Agreement shall be made by supplement thereto and shall be executed on behalf of SCE by the Manager of Real Properties and Administrative Services, or his designee, and on behalf of CITY by the City Council. 16. NOTICES. Any notices provided in this Agreement to be given by either party hereto to the other shall be deemed to have been duly given when made in writing and deposited in the United States mail, registered or certified and postage prepaid, addressed as follows: To SCE Corporate Real Estate Real Estate Operation Southern California Edison Company 14799 Chestnut Street Westminster, CA 92683 Attention: Anita Valko To CITY OF TUSTIN 300 Centennial Way Tustin, CA 92780 Attention: Tim Serlet 17, TERMINATION, CITY shall have the right to terminate this Agreement on sixty (60) days prior written notice to SCE for whatever reason. Except as otherwise provided, in the event of termination of this Agreement by CITY, SCE shall be entitled to payment for all costs and expenses for material, services, labor, overhead, etc., incurred by SCE to and including the date the notice of termination is received by SCE and all costs and expenses required to effect the termination of this Agreement, including, but not limited to, all costs and expenses pertaining to the restoration or removal of SCE'S Electrical Facilities, equipment and/or materials as well as cancellation of contracts, purchase orders, etc., between EDISON and all parties furnishing labor, materials and services made prior to the termination of this Agreement. At the option of SCE, all materials paid for by CITY and procured by SCE to effect said relocation may, upon termination of this Agreement, either be used by SCE for other projects or be sold by SCE as salvage. The net proceeds from the transfer of the materials to other SCE projects or sale of the materials as salvage shall be deducted from the costs and expenses to be paid by CITY after deducting SCE'S applicable administrative costs, material, transportation and conversion costs, taxes and other outlays or charges, associated with such a transfer or sale. Should the sum ofSCE'S -4- costs and expenses exceed the sum of the amounts paid by CITY as provided by item 5 herein, CITY shall pay to SCE the difference between said sums upon submission of a final invoice. Should the sum of the amounts paid by CITY to SCE as provided by item 5 exceed the sum of SCE'S costs and expense, SCE shall refund to CITY the difference between said sums upon submission of a final invoice. If CITY is in default of any of the terms, provisions, conditions, limitations and covenants of this Agreement, SCE may give CITY written notice of default. If within thirty (30) days of receipt of such notice CITY does not cure such default, SCE has the right, if it so desires, to terminate this Agreement upon thirty (30) days prior written notice to CI'IT. Except as otherwise provided, should such right of termination by SCE be exercised, SCE shall be entitled to payment for all costs and expenses for materials, services, labor, overhead, etc., incurred by SCE to and including the date of termination and all costs and expenses required to effect the termination of this Agreement, including but not limited to all costs and expenses pertaining to the restoration or removal of SCE'S Electrical Facilities, equipment and/or materials as well as cancellation of contracts, purchase orders, etc., between SCE and all parties furnishing materials and services, made prior to the termination of this Agreement. 18. PREVIOUS COMMUNICATIONS. This Agreement contains the entire agreement and understanding between SCE and CITY as to the subject matter of this Agreement and merges and supersedes all prior agreements, commitments, representations, and discussions between SCE and CI'IT. Any agreement between persons employed by SCE and CITY which is not incorporated into this Agreement by an amendment shall not be a contractual provision of this Agreement. 19. GOVERNING LAW. This Agreement shall be subject to and constructed according to the law of the State of Califomia. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. By SOUTHERN CALIFORNIA EDISON COMPANY Cl~~. \J C\-~J[ù Anita Valko Corporate Real Estate Real Estate Operations CI'IT OF TUSTIN By MAYOR City Clerk -5- ËXH¡ßrr~ R EL °39%33 JOHANNA-BRYAN-IRVINE -STEELCASE 66kV JOHANNA-CHESTNUT 66kV RULE 20B ORAN" REGION SOUTNEA" "'NSN""O" ~A~,'~TI,~'~~, "'" RP. 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