2003 AGN JUN 17 I29 - Laserfiche WebLink

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During this period of time, the City was also in the property acquisition phase for the construction of a sports park facility. Due to environmental issues surrounding the property located at the northeast comer of Valley and Meridian, the City began negotiations with the Developer to acquire property to construct the sports park facility. During negotiations, the City and Developer agreed to exercise the optional bid item and relocate the 42" City of Riverside water line. Both parties consented to using the EDA grant and CIEDB funds to construct the pipeline. The City Council authorized the award of Optional Bid Item #1 to Matich Corp. on December 3, 2002. ANALYSIS/DISCUSSION: Over the course of the past several months, staff and the Developer have been in constant communication regarding the public infrastructure construction project and acquisition of the property. Within the last several weeks, it became apparent that there was a misunderstanding as to how the pipeline relocation was to be funded and as to the total amount of funds the City and Agency are obligated to contribute to the project. Each party was under the impression that it would incur no additional cost, outside of the EDA grant and CIEDB loan proceeds. This understanding, however, was not clear as to how subsequent change orders to the original contract would be handled. The matter is further complicated due to confusion in the total amount of funds available for the construction of the improvements and related expenses. An exhibit to EDA grant application shows $2,300,000 dollars for construction, but out of that sum additional eligible expenses were incurred leaving $2,042,000 million for construction of the improvements. There would be out of the pocket costs to complete the project, as awarded, which neither the City nor the Developer is willing to bear. On June 10, 2003, staff and the Developer met to address specific issues related to the public infrastructure construction project. During that meeting it was mutually agreed that the Optional Bid Item #1, City of Riverside pipeline relocation should be cancelled, minimizing the financial exposure. ENVIRONMENTAL IMPACT: On July 17, 2000, an Environmental Assessment addressing the construction of that portion of the street improvements involving construction of new streets was submitted to the Community Development Department. The City of Colton recommended a Negative Declaration be prepared for this project. On August 8, 2000, EDA Project No. 07-01-05132 (Construction oflnfrastructure Improvements to Serve the Cooley Ranch Area) was conditionally approved by the Planning Commission with a Negative Declaration; a notice of determination (Environmental) for said negative declaration was prepared for this project pursuant to the provisions of CEQA and filed with the Clerk of the Board of Supervisors.