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HomeMy WebLinkAboutRES NO 45-84RESOLUTION NO. 45-8~ A RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD ORDERING CHANGES AND MODIFICATIONS TO WORK WITH NO INCREASE IN THE TOTAL AMOUNT OF THE ASSESSMENT, CITY OF BAKERSFIELD ASSESSMENT DISTRICT NO. 82-1, STOCKDALE SEWER TRUNKLINE (RESOLUTION OF INTENTION NO. 955). WHEREAS, this City Council did on March 16, 1983, adopt its Resolution of Intention No. 955 relating to certain acquisitions of improvements to be done and made in an assessment district designated "City of Bakersfield Assessment District No. 82-1" described in said Resolution of Intention, which said Resolution provided that serial bonds would be issued in the manner provided in Division 10 of the Streets and Highways Code of the State of California, reference to said Resolution of Intention being hereby expressly made for all further particulars relating thereto; and WHEREAS, an assessment and diagram were duly made and filed with said Council and after hearing, duly noticed and held, said assessment and said diagram were confirmed and approved by Resolution No. 64-83, passed and adopted on April 20, 1983; and WHEREAS, the total cost of construction eligible as part of the acquisition cost did not include certain expenses in cleaning portions of the trunklines prior to being placed in operation by the City; and WHEREAS, such additional work of cleaning is eligible as an acquisition cost for work done in constructing the acquired facilities; and WHEREAS, funds in the amount of $114,400 remain in the acquisition fund for said Assessment District No. 82-1 providing for the expense of the additional work with no increase in the total amount of the assessment; and WHEREAS, documentation showing that costs to Tenneco Realty Development Corporation, incurred in having such additional work of cleaning performed, were not less than the $114,400 balance remaining in the acquisition fund has been reviewed and found acceptable by the Director of Public Works of the City of Bakersfield. NOW, THEREFORE, BE IT RESOLVED AND ORDERED as follows: 1. That the total cost of acquisition and thereby reimbursement by acquisition is set forth in Exhibit "A" attached hereto and by reference incorporated herein. 2. That the additional payment in the amount of $114,400 to Tenneco Realty Development Corporation from the funds of City of Bakersfield Assessment District No. 82-1 is hereby authorized and approved. 3. The increase in work to clean sewer lines prior to operation by the City of Bakersfield without increase in the total amountof assessment is hereby approved. 4. The City Clerk shall forward a copy of this Resolution to the Finance Operations Manager of the City of Bakersfield. .......... o0o .......... I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on the 18th day of July, 1984, by the following vote: AYES: COUNCILA~EN~ BAI~TON, CHILDS, CHRISTENSEN, /v~OORE, PAYNE, f~ATT~ ROC'Z, OJ~r N~S: COUNCILMEN: ~ ABSENT: COUNCI~EN, ~ A~S~A~NINO, COUNa~m, ~ DEPUTY CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED this 18th day of July, 1984 MAYOR~... L/he City of Bakersfield APPROVED as to form: CITY A ORN~the Ci~rsfield AJS:mro 7-10-84 -2- REVISED STATEMENT TOTAL CONSTRUCTION COST STOCKDALE SEWER TRUNKLINE SYSTEM CITY OF BAKERSFIELD ASSESSMENT DISTRICT NO. 82-1 (RESOLUTION OF INTENTION N0.955) June 1, 1984 I. IMPROVEMENT ACQUISITION COSTS: ITEM FINALS COST TOTALS MAY, 1983 A. Gosford Road Trunk Sewer B. Gosford Road Lift Station C. Campus Park Trunk Sewer D. Old River Road Trunk Sewer E. Ming Avenue Trunk Sewer $2,158,320.00 542,980.00 1,087,415.47 538,523.00 392,933.00 TOTAL IMPROVEMENT ACQUISITION COST $4,720,171.47 II. ACQUISITION INCIDENTAL EXPENSES: A. Design Engineering & Construction Inspection B. Assessment Engineering C. Total Acquisition Expense $ 494,044.76 81,000.00 575,044.76 REVISED FINAL COST TOTALS MAY, 1984 $2,158,320.00 542,980.00 1,230,487.00 538,523.00 392.933.00 $4,863,243.16 496,835.62 72,438.49 $ 569,274.11 III. IV. V. VI. VI I. NOTE: TOTAL AMOUNT TO BE PAID TO TENNECO REALTY DEVELOPMENT CORPORATION (T.R.D.C.) on 5-25-83 $5,295,216.23 REVISED TOTAL COST TO CONSTRUCT TRUNKLINE SEWER SYSTEM IMPROVEMENTS $5,432,517.27 TOTAL ADDITIONAL COSTS IN EXCESS OF PREVIOUS PAYMENT (IV-III) $ 137,301.04 TOTAL AMOUNT REQUESTED FOR PAYMENT TO T. RoD.C. AS REIMBURSEMENT FOR ADDITIONAL T.R.D.C. COSTS TO COMPLETE CONSTRUCTION OF THE STOCKDALE SEWER TRUNKLINE $ 114,400.00 NET OF UNREIMBURSED T.R.D.C. COSTS FOR TRUNKLINE CONSTRUCTION (V-VI) $( 22,901.04) UNDESIGNATED FUNDS IN THE AMOUNT OF $114,400.00 ARE CURRENTLY HELD BY THE CITY, IN THE ACCOUNT FOR ASSESSMENT DISTRICT NO. 82-1. THE REQUESTED ADDITIONAL PAYMENT WILL COVER 83.3% OF THE TOTAL COST OF ADDITIONAL WORK TO CLEAN SEWER LINES OF MUD DEPOSITED IN THE SYSTEM WHEN A SERIES OF RAIN STORMS FLOODED THE COMPLETED SEWER MAINS. STATUS SUMMARY STOCKDALE SEWER TRUNKLINE SEWER SYSTEM PROJECT CONSTRUCTION AND ASSESSMENT DISTRICT FINANCING PROGRAM JUNE 1, 1984 Construction work on the Stockdale Sewer Trunkline System was officially completed on March 16, 1983, when a project Notice of Construction Completion was recorded by Tenneco Realty Development Corporation (TRDC). On that same date, the Bakersfield City Engineer filed his certification that a final inspection of the facilities had been made and that the sewer system was complete and recommended for acquisition by the City. The Bakersfield City Council then proceeded with the processing of City Assessment District No 82-1 and on April 20th of 1983, the Council confirmed an assessment of $6,189,877.00 on benefited properties in the district. Bonds were sold on May 9th and a total of $5,295,216.23 paid to TRDC from bond sale proceeds, for City acquisition of the completed Trunkline Sewer System. This payment reimbursed TRDC for its trunkline system construction costs incurred prior to the April 20th close of the assessment proceedings. However, a short time after the project facilities were completed in March of 1983, and the assessment proceeding started, surface runoff from a series of heavy rain storms flooded a major portion of the Trunkline Sewer System located upstream from the Gosford Road Lift Station. Tons of mud and debris were deposited in the sewer mains by these surface flood waters. Fortunately, the system had not been placed into operation at the time of the flooding and none of the flood water and mud was pumped through the Gosford Road Lift Station. However, all of the mud deposited in the sewer lines had to be removed, before the system could be placed into operation by the City. The contractor for the Gosford Road Lift Station was authorized to proceed with removal of the mud that, in many locations, had been deposited to depths in excess of two feet in the 39 inch and 42 inch diameter sewer mains comprising the Campus Park section of the Trunkline Sewer System. Placing the lift station contractor in charge of the sewer cleaning operation made it possible to preserve the full one year contractor warranty on the lift station pumping equipment. The cleaning work was performed on a time and materials basis, at a total additional cost of $137,301.04 above the amount already paid to TRDC. Sewer cleaning work was completed in June 1983 and shortly thereafter, the Cal State Bakersfield Campus sewer system was connected to the upstream terminus of the trunkline system in Ming Avenue. Sewage effluent from the college must flow through the full length of the Trunkline System to reach Treatment Plant No. 3. It was a matter of urgency that the college be connected to the new Trunkline System as quickly as possible, to free-up capacity in the existing sewer mains east of Gosford Road which were being overloaded by effluent from the college campus. As a consequence, the sewer cleaning work had to proceed on an emergency basis to expedite connection of the college system to the new Trunkline Sewer. No effort has been made prior to this date to request City Council approval of the additional sewer cleaning work done on the Campus Park mains because: ae The cleaning work did not alter the scope of the already approved Trunkline facilities and, Until recently, there were no funds available to pay for any of the additional cleaning work. As of June 1, 1984, the City Finance Department has identified a total of $114,400 in undedicated funds as available for payment to TRDC. This proposed payment would be a partial reimbursement of TRDC costs for additional sewer cleaning work. These funds have become available as a result of lower than anticipated assessment district administration costs and higher than anticipated interest earnings on unexpended funds from the sale of the project assessment bonds in May, 1983. The attached table presents a revised statement of project costs, as of June 1, 1983. Table Item V shows the total additional unreimbursed TRDC project cost as $137,301.04. City Council approval of the request TRDC additional payment of $114,400, will leave a balance of $22,901.04 in unreimbursed TRDC costs. This final unreimbursed amount would be added to the $6,189,877.00 already assessed to Tenneco properties, for a total Trunkline System Cost of $6,212,778.04. This total system cost will be paid off over 15 years, by TRDC and other property owners in the Trunkline System Benefit Area. No city funds will be used to pay for any of the costs associated with the design, construction, financing, and administration of the Stockdale Sewer Trunkline System Assessment District.