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RPVCCA_CC_SR_2012_09_18_K_Ryan_Park_Parking_Lot_RestorationMEMORANDUM RANCHO PALOS VERDES TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL JIM HENDRICKSON,INTERIM DIRECTOR OF PUBLIC WORKS ~n ./ SEPTEMBER 18,2012 ~ EXPENDITURE AUTHORIZATION FOR RESTORATION OF A DAMAGED PORTION OF THE PARKING LOT AT RYAN PARK (SUPPORTS 2012 CITY COUNCIL GOAL No.4,PUBLIC INFRASTRUCTURE)..r"'\ CAROLYN LEHR,CITY MANAGER ClY-- Staff Coordinator:Siamak Motahari,Senior Engineer o;}11· RECOMMENDATIONS Adopt Resolution No.2012-_a Resolution of the City Council of the City of Rancho Palos Verdes,amending Resolution 2012-43,the City's Budget Appropriation for Fiscal Year 2012-13,for a budget adjustment to the City's Parks, Trails &Open Space Improvements Program in the Capital Improvement Budget Fund in the amount of $26,468,with 10%contingency in amount of $2,646 for a total of $29,114,authorizing expenditure of this amount for restoration of the damaged surface of Ryan Park parking lot. BACKGROUND &DISCUSSION In preparation for ground drilling for a geotechnical investigation at Ryan Park parking lot,the City's consultants had asked Dig Alert to locate utility lines at specific locations which they marked.California Water Company (Cal Water)marked one of these locations to be clear of water lines and showed the existing line at a spot about 20 ft away from it.Unfortunately,on July 19,the contractor drilled through a 6-inch Fire Hydrant line exactly at the spot marked by Cal Water as clear. City crews rushed to the site and called the Fire Department and Cal Water and were able to shut off the valve in a relatively short amount of time.However water had gushed out with tremendous pressure which caused damage to the asphalt concrete surface.Since then,the City Crews have closed off the damaged portion of the parking lot for safety reasons. K-1 Page 2 Staff followed up with Cal Water to see why the spot was mistakenly marked.Cal Water investigated it further,and eventually located the drawing in their archives which depicted the correct location of the water line.When staff pursued the issue,Cal Water eventually accepted responsibility and agreed to pay for the cost of restoring the damaged area through their insurance firm. DISCUSSION The damaged portion of Ryan park parking lot has been closed for safety reasons. This closure has caused an inconvenience for park users,however,staff had to go through necessary process of claiming the cost for damages.Since the damage is on the City's property,restoration work needs to be done by the City. Staff has obtained three bids for the restoration work and intends to hire the contractor who has submitted the lowest bid of $26,468.Cal Water's insurance firm has offered to issue a check to the City in the amount of $26,468,however this payment is subject to the City signing a 'Release of Claims'form prior to construction.After reviewing this document,the City Attorney advised staff to sign the release form after construction work is completed,and,based on the reimbursement amount for the actual cost of restoration work.This will prevent potential unforeseen construction costs to be incurred upon the City. This work is expected to be completed within two weeks of Council's action. ALTERNATIVE It does not appear that there are better alternatives than the restoration of the parking lot pavement through the City's claim. CONCLUSION Adopting this Resolution will restore the damaged portion of Ryan Park parking lot and make it available for public use. FISCAL IMPACT This resolution is needed to increase the budget for an amount equal to the construction cost proposed by the lowest bidder (with 10%contingency)for a total of $29,114,and,to authorize expenditure of those funds for the restoration work which is expected to be reimbursed by Cal Water's insurance subsequent to completion of work. Therefore,it is anticipated there should be no net cost to the City for the restoration of the parking lot. Attachment:Resolution 2012- K-2 RESOLUTION NO.2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES,AMENDING RESOLUTION 2012-43,THE BUDGET APPROPRIATION FOR FISCAL YEAR 2012-13,FOR A BUDGET ADJUSTMENT TO THE CITY'S PARKS,TRAILS &OPEN SPACE IMPROVEMENTS PROGRAM IN THE CAPITAL IMPROVEMENTS BUDGET FUND WHEREAS,Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council;and WHEREAS,on June 19,2012,the City Council of the City of Rancho Palos Verdes adopted Resolution 2012-43,approving a spending plan and authorizing a budget appropriation for the 2012-13 fiscal year;and WHEREAS,a fire hydrant water line breakage caused damages to the parking lot asphalt surface estimated for the amount of $26,468;and WHEREAS,California Water Services Company,which is responsible for the damage,will reimburse the City for the cost of restoration through its insurance firm;and WHEREAS,it is necessary for the City to allocate $26,468 with 10%contingency in the amount of $2,646 for a total of $29,114 for Ryan Park Parking Lot Water Damage Restoration;and WHEREAS,a budget increase on $29,114 in the Parks,Trails &Open Space Improvements fund is necessary to authorize the expenditure for this work;and BE IT,THEREFORE,RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES: The following adjustment(s)be made to the following fund(s): Parks,Trails &Open Space Improvements Program in the Capital Improvements Budget Fund~ Ryan Park S.Entrance Road Improvements 330-3033-461-73-00 $29,114 Verified by Finance:-L.CiJ- Resolution No.2012- Page 1 of 2 K-3 PASSED,APPROVED,AND ADOPTED THIS 18th DAY OF SEPTEMBER 2012. MAYOR ATTEST: CITY CLERK State of California ) County of Los Angeles )ss City of Rancho Palos Verdes ) I,CARLA MORREALE,City Clerk of The City of Rancho Palos Verdes,hereby certify that the above Resolution No.2012-was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on September 18,2012. CITY CLERK CITY OF RANCHO PALOS VERDES Resolution No.2012- Page 2 of2 K-4