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HomeMy WebLinkAboutTC Agd Pkt 2005-12-15 J. ' ~-~'--: ."- .'''h ,.,~~ ) TOWN OF TIBURON Town Council Chambers. 1505 Tiburon Boulevard Tiburon, CA 94920 December 15, 2005 Special Meeting 6:00 P.M. ASSISTANCE FOR PEOPLE WITH DI~ABILlTIES In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Town Clerk at (415) 435-7377, Notification 48 hours prior to the meeting will enable the Town to make reasonable arrangements to ensure accessibility to this meeting. . AVAILABILITY OF INFORMATION Copies of all agenda reports and supporting data are available for viewing and inspection at Town Hall and at the Belvedere-Tiburon Library located adjacent to Town Hall. Agendas and minutes are posted on the Town's website, www.cLtiburon.ca.us. Upon request, the Town will provide written agenda materials in appropriate alternative formats, or disability-related modification or accommodation, including auxiliary aids or services, to enable individuals with .disabilities to participate in public meetings. Please send. a written request, including your name, mailing address, phone number and brief description of the requested materials and preferred alternative format or auxiliary aid or service at least 5 days before the meeting. Requests should be sent to the Office of the Town Clerk at the above address. PUBLIC HEARINGS Public Hearings provide the general public and interested parties an opportunity to provide testimony on these items. If you challenge any proposed action(s) in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing(s) described later in this agenda, or in written correspondence delivered to the Town Council at, or prior to, the Public Hearing(s). TIMING OF ITEMS ON AGENDA While the. Town Council attempts to hear all items in order as stated on the agenda, it reserves the right to take items out of order. No set times are assigned to items appearing on the Town Council agenda. . Agenda - Town Council Meeting March 30, 2005 Page 2 of 2 , ~ .~ AGENDA CALL TO ORDER AND ROLL CALL Councilmember Berger, Councilmember Fredericks, Councilmember Slavitz, Vice Mayor Gram, Mayor Smith ORAL COMMUNICATIONS Persons wishing to address the Town Council on any subject not on the agenda may do so now, Please note however, that the Town Council is not able to undertake extended discussion or action tonight on items not on the agenda. Matters requiring action will be referred to the appropriate Commission, Board, Committee or staff for consideration andlor placed on a future Town Council meeting agenda. Please limit your comments to no more than three (3) minutes. PUBLIC HEARING 1, Recommendation by Interim Director of Public WorkslTown Engineer and Project Coordinator . - Lyford Cove Utility Undergrounding Supplemental Assessment District a) Consider Proposals to Fund Construction of Underground Improvements b) A Resolution of the Town Council of the Town of Tiburon Requesting Consent of the Board of Supervisors of the County of Marin for Extra-Territorial Jurisdiction to Undertake Special Assessment Proceedings Under Section 10103 of the Streets and Highways Code ADJOURNMENT The next regular meeting is scheduled for January 4, 2006. TOWN HALL WILL BE CLOSED FROM DECEMBER 23, 2005 THROUGH JANUARY 2, 2006. :;"'Gi ~'\ ,,-,.... , ,r. Town of Tiburon STAFF REPORT I AGENDA ITEM TO: Mayor and Members of the Town Council Dave Bernardi, Interim Diredor of Public WorkslTownEngineer Troy Bassett, Project Coordinator ,.,-\ r /" ; S.UBJECT: Lyford Cove Utility Undergrounding Assessment ~I\ .~ MEETING DATE: December 15, 2005 REVIEWED BY: '1. ~ 'I \ . . . . . . . . . . . . .~y . On November 15, 2005, the Town received contractor bids to do the work associated with the Lyford Cove Utility Undergrounding; all were higher than anticipated, The three bids received were from: FROM: Maggiora & Ghilotti Ranger Pipeline, Inc. Underground Construction Co $ 3,868,654 4,018,095 4,724,725 The amount of money remaining from the combined Bond issues for construction is $2,854,259. When you add the necessary 10% contingency to the low bid, the difference between the costs of the construction and the amount of funds available is $1.4 million. BACKGROUND The Town has a policy of encouraging the formation of undergrounding utility districts for the purpose of undergrounding utilities. The most recent success was the formation of the Stewart Drive Undergrounding District in 2001. With that District, the Town had viable bids in hand before selling the bonds to fund the construction, In April 2003, the Town Council revisited its policy of district formation and the cost associated with the ability of neighborhoods to form districts, Aside from the incredible grassroots efforts to create a district, the cost to do so can be prohibitive. Before a district is formed, an engineer needs to be retained to act as "Engineer-of- Record" who brings experience and skills to the district formation and execution process, Funds need to be raised by the district proponents in the form of "subscriptions", Under the Stewart Drive effort, the subscriptions were fixed at $1,000 per subscribeL The Town Council preferrE!d to see over 50% subscriptions in a would be district before moving forward with the formation process, As a result of a lawsuit filed by a member in the Stewart Drive District, the Town is now required to provide independent legal advice to district members. While perhaps a valuable service, this resulted in additional costs to create a district (thus increasing the cost of the individual subscriptions). This, as well as other cost pressures caused the Town Council to ask for a policy on District Formation. December 13, 2005 1 of 6 ..~. '-'" ''-c } ~"'. .~ Town of Tiburon STAFF REPORT In order to control costs for the District formation process, the Council agreed to include in the Engineer's Report, a construction cost estimate based on preliminary design information rather than on a completed engineering design ready to bid, The cost to produce a final engineering design is about four times the cost of the preliminary design information, Clearly, with a construction cost estimate based on preliminary design information, there is a limit to the amount of detail to be found and therefore,. greater risks associated with using them. One such risk is that, despite providing for contingencies, costs can escalate, In the case of Lyford Cove, this is the result. At the time this policy was being considered, it was acknowledged by the Town Council that the figure found in the Engineers Report might require adjustment after construction bids were received, In November 2004, the Town Council approved the Resolution adopting the Lyford Cove Utility Undergrounding Assessment District Engineer's Report, Ordering Improvements, Forming the District, and Confirming the Assessment. The Engineer's Report for the Lyford Cove District. was approved and ballots tallied. Assessments were calculated using construction cost estimates based on the preliminary design information. Harris and Associates estimate was $2,030,465 for the construction and was based qn the information available to them at that time, Engineering design work began after the District was approved: The Council adopted the Resolution authorizing issuance of limited obligation improvement bonds on February 2, 2005. Harris developed a revised estimate of $2,525,000 when the project originally went out to bid during the summer of 2005. Two bids were received in July for $3,900,000 and $4,400,000, Given the magnitude of the discrepancy between the Engineer's estimate and the bids received, both bids were rejected. Feedback from other Public Works Departments at that time suggested that contractors were extremely busy last summer due to a great number of active construction projects throughout the Bay Area, and that a number of agencies were seeing bids extraordinarily higher than estimated. The Town Council directed staff to re-bid the project later in the year, with a number of modifications to the bid package, in an attempt to attract more bidders, and more competitive bid prices. Revisions included segregating the private service conversion work into a separate bid package; deleting requirements for landscape restoration work on the public right-of-way; extending the length of time allowed for the contractor to complete the work from six months to 12 months; extending the length of trench allowed to be plated overnight from 100 to 150 feet at anyone location; and identifying acceptable staging areas for use by contractors during construction. December 13, 2005 2of6 - ~ ~ V;::. ~; .~'. Town of Tiburon STAFF REPORT . Despite these efforts, the District again received bids that substantially exceedE~d the available funds for construction ofthe improvements to Lyford Cove Undergrounding, POTENTIAL COST SAVINGS Possibilities for reducing the cost of the project were exhausted when the bid package was restructured after this summer's bidding, However, Staff has identified two possibilities for additional cost savings that directly affect the project. 1 , Delete the proposed new street lighting from the project by leaving the existing street lighting in place, The current utility poles where streetlights exist would simply be cut down to the height of the street light. This would create a savings of approximately $110,000, 2. Minimize the pavement patching at the trench to the width of the trench, rather than requiring the contractor to do a wedge grind with a 4' wide T- patch. This could possibly save an additional $80,000. Additionally, on those streets- which will be receiving either a slurry seal or a full pavement overlay per recently adopted Town Policy, the costs of pavement marking could be shifted to the Town's pavement management program budget for approximately $10,000 in savings to the District ALTERNATE SOURCES OFFUNDlNG Additional sources of funding can be considered; some were included in budget estimates; some would require a shift in Town Policy. 1. One of the utilities that share the "joint trench" is Comcast There is a dispute between the T own and Com cast as to the financial extent to which Comcast is required to pay its share of the trench, The Town has sent a bill to Comcast Cable in the amount of $880,000 ($785,000 for direct construction- related expenses) for its share of the project; Comcast has disputed how much of this amount is its responsibility; they have not yet indicated what amount is not in dispute. These funds cannot be relied upon as their disposition may remain unsettled for some time, 2. Marin County Sanitary District #5 presently has a "force main" under Paradise " Drive which needs to be relocated out of the way for the undergrounding trench. Legally, Sanitary District 5 is required to relocate its force main at its sole cost (estimated to be $34,800). The Town has notified Sanitary District 5 or its obligation to do so. Sanitary District 5 is also disputing its responsibility forthis cost. 3. Pacific Gas & Electric's franchise with the State of California requires it to provide undergrounding to certain qualifying areas within the franchise December 13, 2005 3of6 Town of Tiburon STAFF REPORT .. .. .. . . . . . . .. .. .. .. .. .. .. .. .. . . . .. .. .. .. .. .. . .. . . . .. .. .. .- '. ';'-" . . .. .. boundaries. Known as a Rule 20A program, these' are provided in the form of credits to each community. Tiburon currently has $180,000 of funding credits available, Paradise Drive may qualify for PG&E Rule 20A funds, However, Town Policy identifies Tiburon Boulevard as the priority for use of Rule 20A funding, and Trestle Gien as next in-line for 20A funds once Tiburon Blvd has been completed, PG&E has indicated its willingness to consider Paradise Drive, However, any funding would not be available until 2007 at the earliest therefore requiring the Town to advance the funds until reimbursement by PG&E. 4. In all public works projects, the Town requires a contingency to be secured. The Lyford Cove project has a 10% construction contingency, By reducing the 10% construction contingency, funds could be freed up for use by the District; each 1 % reduction in contingency = $38,600. A 10% contingency for a project of this magnitude and caliber is highly conservative. Should the contingency fall short, the Town needs to consider. how unforeseen conditions found during construction would be paid fOL 5. When the District sold the bonds, it created a necessary "Bond Reserve Fund," The Town could consider releasing the reserve fund proceedstoward the construction shortfall and restricting a comparable amount in the Town's general fund as a replacement reserve fund. Under current law, chances are slim that the Town's funds would ever be called on for any delinquencies. And, even if there were delinquencies, on reinstatement of a delinquency, the Town would be reimbursed for any advances plus interest and penalties. Shifting the bond reserve represents a savings to the District of approximately $78,000. The Town Council has the discretion to include or abandon any of these options. CANCEL THE PROJECT The. question needs to be raised - can the project be cancelled and what are the consequences of doing so? The Town CounciLcan choose to cancel the project at its sole discretion citing lack of adequate funding to carry out the work associated, The bonds will be recalled and paid off with the existing funds, If the Council opts to abandon this project, it should be noted that expenses already incurred by the District will still need to be paid. After a preliminary review of funds already spent, we have estimated that the cost to property owners would continue to appear on property tax bills on average at $120/year/parcel for the life of the bonds (30 years), Those property owners who pre-paid their assessment would be refunded their prepayment less their share of the expenses already incurred. ~.~\ K~l '..... ~.. ~ December 13, 2005 4of6 -.~ ~; Town of Tiburon STAFF REPORT AVAILABLE OPTIONS Town staff believes that the existing bid from Maggiora & Ghilotti is sound and efforts should be made to preserve the bid, However, the bid expires on December 30, 2005. Without an action by the Town Council by then, the bid is dee,med expired. The Town Council can direct staff to work with Maggiora & Ghilotti to preserve the costs that are known and agree to a process whereby any material cost increases are paid for by the District. Otherwise, new plans and specific~tions will need to be prepared and bids secured. Given that this has been done twice already; staff is concerned that qualified bidderswill shy away from this project. So, preserving the bid raises the next question and that is how to fund the difference. The Town policy is not to provide funds for any private benefit assessment districts. There may even be law precluding doing so (e.g., gift of public funds). As such, in order for the project to continue, it appears that the District will need to raise the funds, The Town, on behalf of the District, can sell supplemental bonds to make up the balance. With the current $1 A million shortfall, on average, per parcel, it is estimated that it would cost an additional $300 per year. Clearly, the District Engineer will need to apply the spread to the existing formula, take into account additional costs, and recalculate each supplemental amount The bond underwriter will be available at the meeting to help better explain this methodology. If the Town wanted to pursue a supplemental bond, procedurally, the Town would need to: 1, Request from the County for extra-territorial jurisdiction for the area which is in the County which comprises part of the District 2. After receiving County approval, Adopt a Resolution of Intention to Make Acquisitions and ImProvements and ask the District Engineer to draft a report. At the time of doing so, the Town Council will need to be able to direct the District Engineer on any cost savings, cost shiftings or project modifications it desires, 3. Receive and accept as final, the Engineer's Report and call for ballots. 4. At least 45 days later, the Town Council would tally the ballots and with a majority vote consider approving the supplemental assessments. If the ballot is successful and the Town Council agrees, then the Town Council could award a contract to Maggiora & Ghilotti. If started immediately, this entire process could be completed by early March 2005. December 13, 2005 5of6 , ~'~ , ~l Town of Tiburon STAFF REPORT RECOMMENDATION It is recommended that the Town Council take the following actions: a) Receive public comment; b) Consider the various proposals above to fund the differencoe between the existing bid and the funds available for construction of underground improvements; ,~ c) Adopt a Resolution of the Town Council of the Town of Tiburon requesting consent of the Board of Supervisors of the County of Marin for extra-territorial jurisdiction to undertake special assessment proceedings under section 10103 of the streets and highways code; and d) Ask staff to negotiate with Maggiora & Ghilotti to preserve its existing bid. EXHIBITS A Resolution Requesting Extra-Territorial Jurisdiction from Marin County, December 13, 2005 6of6 ;~ ~/ RESOLUTION NO. A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON REQUESTING CONSENT OF THE BOARD OF SUPERVISORS OF THE COUNTY OF MARIN FOR EXTRA-TERRITORIAL JURISDICTION TO UNDERTAKE SPECIAL ASSESSMENT PROCEEDINGS UNDER SECTION 10103 OF THE STREETS AND HIGHWAYS CODE TOWN OF TIBURON Lyford Cove Utilities Undergrounding Supplemental Assessment District RESOLVED by the Town Council (the. "Council") of the Town of Tiburon (the "Town"), County of Marin (the "County"), State of California, that: WHEREAS, this Council intends to undertake special assessment proceedings under the Municipal Improvement Act of 1913, Division 12, California Streets and Highways Code (as modified by Section 53753 of the California Government Code) (the Act") for the Town's Lyford Cove Utilities Undergrounding Supplemental Assessment District (the "Supplemental Assessment District") to provide for the undergrounding. of existing overhead utilities (the "Improvements") under and as described in its Resolution of Intention to Make Acquisitions and Improvements (the "Resolution of Intention") attached hereto as Exhibit A and hereby made a part hereof; WHEREAS, to pay for the Improvements, the Town proposes to assess the costs and expenses thereof on the Supplemental Assessment District, the exterior boundaries of which are shown on the Map of Proposed Boundaries of the Supplemental Assessment District (the "Boundary Map") on file in the office of the Town Clerk and a copy of which is attached hereto as Exhibit B and made a part hereof; . WHEREAS, a portion of the Improvements proposed to be made and a portion of the lands proposed to be included in the Supplemental Assessment District being outside of the boundaries of the Town and being within the unincorporated territory of the County, the Town must request the consent of the County under Section 10103 of the Act; and WHEREAS, the acquisitions and improvements to be made are of such a character that they will directly and peculiarly affect property not only within the boundaries of the Town but also unincorporated territory within the County and the purposes sought to be accomplished can best be accomplished by a single comprehensive scheme of work. NOW, THEREFORE, IT IS ORDERED, as follows: 1. Recitals. The foregoing recitals are all true and correct and are incorporated in these orders. 2. Request for Jurisdiction. The Town respectfully requests that the Board of Supervisors of the County it. being the legislative body having jurisdiction over the unincorporated territory in which a portion of the Improvements are to be made and the assessments are to be levied, grant to this Council its consent, expressed by resolution,to the conduct of proceedings under the Act for the Supplemental Assessment District, including the assessment of the costs Improvements upon the properties within the unincorporated area of the County specially benefited thereby and the assumption of jurisdiction solely for such purposes, . 3. Resolution of Intention. The Town respectfully requests that the form of Resolution of Intention attached as Exhibit A and the Boundary Map attached as Exhibit B be approved by the Board of Supervisors of the County upon the express understanding that the County shall in no way be liable for the conduct of proceedings for, the levy of assessments in or the payment of costs incidental to the Supplemental Assessment District. 4. Filings Directed, The Town Clerk is hereby directed to file with the Clerk of the Board of Supervisors of the County a certified copy of this resolution, together with. a copy of the form of Resolution of Intention and a copy of the Boundary Map. 5. Effective. This resolution shall take effect upon its adoption. ************ PASSED AND ADOPTED at the regular meeting of the Town Council of the Town of Tiburon, State of California, on this day of , 2003, by the following vote to wit: AYES: NOES: ABSENT: COUNCILMEMBERS: COUNCILMEMBERS COUNCI LMEMBERS MILES BERGER, MAYOR TOWN OF TIBURON ATTEST: DIANE CRANE IACOPI, TOWN CLERK ************ -2- ~ t , ~~ ~ / De,c 15 05 01:45p 415 456 1580 p.2 .' ~, Robin Lee Moore 2360 Vista del Mar Lane Tiburon, CA 94920 (415) 435-6330 LATE MAR. # December 15, 2005 Tiburon Town Council 1505 Tiburon Boulevard Tiburon, CA 94920 Re: Special Meeting Lyford Cove Undergrounding Dear Council Members: This letter is regarding the special meeting tonight concerning the undergrounding project in Lyford Cove. I have already paid my assessment in full. I am not prepared to pay anymore towards the undergrounding project. I am stretched to the limit now and I am terrified you will be opening a Pandora's Box which will result in another assessment and another and another... .This scenario will drive me out of my home town. I have lived here since my birth in 1953 and as you will appreciate, have seen many changes. I realize that $25,000 is not much money to many homeowners in this area, but it certainly is to me! I would prefer to cancel the entire project and receive a refund of the $16.660 + I paid to the Town of Tiburon. Of course, if a guardian angel would like to step in and pay any additional assessment on my behalf, they are more than welcome. I bought my house with the wires, I can continue to live with the wires and save any additional assessment for my retirement instead. Otherwise, I am sure I will be unable to afford to live in this community anymore. In short: please cancel the project and refund my money. Thank you for your time. Sincerely, /)iy~L li/L-- Robin L. Moore