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RPVCCA_CC_SR_2014_10_07_G_PV_Shores_Mobile_Home_Park_Right_of_AccessCITY OF RANCHO PALOS VERDES MEMORANDUM TO: FROM: DATE: SUBJECT: REVIEWED: Project Manager: HONORABLE MAYOR & CITY COUNCIL MEMBERS MICHAEL THRONE, DIRECTOR OF PUBLIC WORKS bro OCTOBER 7, 2014 FIRST AMENDMENT TO THE RIGHT OF ACCESS AGREEMENT WITH PV SHORES MOBILE HOME PARK CAROLYNN PETRU, ACTING CITY MANAGE~ Andy Winje, Associate Engineer~ RECOMMENDATION Authorize the Mayor and City Clerk to execute Amendment No. 1 to the Right of Access Agreement with Palos Verdes Shores Mobile Estates Ltd. (PV Shores) for construction access through the mobile home park related to the construction of the San Ramon Canyon Stormwater Flood Reduction Project. BACKGROUND During the design stage of the San Ramon Project it became apparent that access through the PV Shores mobile home park (Park) to a portion of the construction site would be required. The design strength of the existing roads in the Park was not known and so designers were unsure how they would stand up to the heavy loads expected along the haul route. Provisions were made in the bid documents for the reconstruction of portions of the roads and the re-paving of other sections along this route. On April 16, 2013, the City Council authorized an agreement with PV Shores that granted permission to access the San Ramon construction site via certain Park roads. The agreement stipulated that the City would be liable to repair any damage to the traveled way within the Park on roads used by the City's contractor, as well as damage to the property of the residents and guests, for a period of 18 months. The agreement was executed and the work proceeded under the terms and conditions therein. As the San Ramon project draws to a close, work requiring access through the Park has concluded and staff is working to bring the agreement to its rightful end. The remaining issue is to settle on the appropriate remedy for any known or latent damage caused to G-1 First Amendment to PV Shores Agreement October 7, 2014 Page 2of3 the Park's property during the project. DISCUSSION To determine the extent of damage to the roads used as a haul route, the City engaged a third party civil engineer who documented the condition of the haul route road surface before and after the work requiring access through the Park. In his opinion, these roads appear to have held up better than anticipated and do not appear to require a complete rebuilding as provided for in the bid documents. While negotiating the scope of work for a fair road repair, the P\l Shores owner decided that he would prefer to be paid a lump-sum amount in lieu of repairs. This payment shall be considered full payment for all claims for repair to the roadway as stipulated in the agreement. This payment would go to their road maintenance fund and could be used at some time in the future. City staff prefers the idea of paying a lump-sum amount to avoid having to work on the only access road into the neighborhood and associated liability of working on private roads. The project staff and owner of the Park have settled on an amount of $75,000. The contractor has agreed to pay the lump-sum ($75,000) through the existing contract and be reimbursed for it by the City in lieu of performing the work and being paid for the construction bid items for road repairs in the Park. The original anticipated cost to repair the haul route roads is $472,470 and the difference can be considered a savings for this part of the project. The scope was written by the design team as a "worst case" scenario. The savings is being applied to other activities in the project including pavement rehabilitation along the southernmost portion of PVDE, which was degraded during the project. The owner of the Park has also agreed to reduce the period for claims for damage to utilities from 18 months to 12 months, in exchange for confirmation of the City's responsibility to correct such damage caused by the construction. Language addressing this request is included in Section 2 of the amendment. CONCLUSIONS The City has negotiated an amendment to the agreement that settles the issue of repairs to the roadways used in the Park as the construction haul route, releases the City of liability pertaining to damage to the roads caused during construction, and shortens the period for bringing claims for undiscovered damage to utilities. The arrangement is satisfactory to the Park owners and City staff .. The costs associated with this settlement represent a substantial savings as compared to the anticipated costs to repair and repave the haul route roads in the park. The amendment does not address the obligations in the agreement regarding liability for damage to other portions of the Park. Any claims for such damage would be required to establish that the damage was caused by the use of the roads by the City's contractor. Staff recommends executing the attached amendment to the right of access agreement. G-2 First Amendment to PV Shores Agreement October 7, 2014 Page 3of3 FISCAL IMPACT The estimated net savings to the City for amending the right of entry agreement is $397,470. However, these savings were reinvested into other project enhancements (paving along PVDE). The total cost of all change orders to the project are within the contingency authorized by City Council at the award of the construction contract and have been provided for in the FY2014-15 Adopted Budget (including continuing appropriations) as part of the Water Quality and Flood Protection program. Attachment: Amendment No. 1 G-3 AMENDMENT NO. 1 RIGHT OF ACCESS AGREEMENT Between: City of Rancho Palos Verdes & Palos Verdes Shores Mobile Estates, Ltd. This Amendment No. 1 ("Amendment") to Right of Access Agreement is made and entered into as of October_, 2014, by and between the Palos Verdes Shores Mobile Estates, Ltd., a California limited partnership ("Grantor") and City of Rancho Palos Verdes, a California municipal corporation ("City"). RECITALS: A. City and Grantor entered into that certain Right of Access Agreement dated ______ , 2013 (the "Agreement"). All capitalized terms not otherwise defined in this Amendment shall have the meanings specified in the Agreement. B. The License Work has been completed. C. City and Grantor have inspected the Property and all drainage structures located within or immediately adjacent to the Property, and evaluated the extent of any damage caused by the City Parties in connection with the Agreement. D. City and Grantor desire to amend the Agreement regarding the obligation of City to repair and restore property damaged by the City Parties in connection with the Agreement. NOW, THEREFORE, in consideration of the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Grantor do hereby agree as follows: 1. The foregoing recitals are incorporated herein by this reference. 2. Settlement of City liability for Grantor's Property: The Parties agree that a lump sum payment to Grantor in the amount of $75,000 shall fully compensate Grantor for construction related damages, wear and tear, and all other claims arising from Section 1 .4 of the Agreement, relating to damage to the Property and all drainage structures located within or immediately adjacent to the Property. Upon such payment City shall have no further obligation to repair and restore the Property, including but not limited to the asphalt surface and substructure of the private streets, landscaping, curbing, and any concrete drainage structures located within or immediately adjacent to the Property. 3. City Liability for Utilities: City hereby agrees to repair, or cause the repair, of 1 R6876-0001\1754086v2.doc G-4 any damage to the utilities on or under the Property caused by the City Parties in the exercise of rights granted by the Agreement, for which a claim is delivered to City prior to September 15, 2015. Except as set forth in this paragraph 3, City shall have no further obligation to repair and restore the utilities on Grantor's property. 4. In the event of any conflict between the provisions of the Agreement (including but not limited to Section 1.4) and this Amendment, the provisions of this Amendment shall control. IN WITNESS WHEREOF, Grantor and the City have caused this Amendment to be executed as of the day and year first written above. GRANTOR: PALOS VERDES SHORES MOBILE HOME ESTATES, LTD., a California Limited Partnership By: Vedder Community Management LLC, its General Partner Address for notices: William C. Schweinfurth Director of Operations Vedder Community Management LLC 28632 Roadside Drive, Suite 220 Agoura Hills, CA 91301(818) 735-6200 (818) 735-6205 fax With a copy to: Community Manager Palos Verdes Shores Mobile Estates 2275 W. 25th Street San Pedro, California 90732 (310) 547-4403 (310) 547-4405 fax [Signatures Continue On The Next Page] R6876-0001\1754086v2 .doc Phillip J. Vedder Its Managing Member 2 G-5 [Signatures Continued From The Previous Page] CITY: CITY OF RANCHO PALOS VERDES By: Name: Title: Mayor Address for notices: 30940 Hawthorne Boulevard Rancho Palos Verdes, California 90275 Attention: Ron Dragoo, Senior Engineer Telephone No.: (310) 544-5252 Facsimile No.: (310) 544-5292 [With a copy to:] Carol W. Lynch, Esq. Richards, Watson & Gershon 355 South Grand Avenue, 40th Floor Los Angeles, California 90071 Telephone No.: (213) 626-8484 Facsimile No.: (213) 626-0078 ATTEST: City Clerk R6876-0001\1754086v2.doc 3 G-6