TITLE
WITHDRAWN
Recommendation to authorize City Manager, or designee, to execute all documents necessary to enter into a Caltrans Utility Agreement and an Amended and Restated Relocation Agreement with the Alameda Corridor Transportation Authority (ACTA), for reimbursement of costs to upgrade natural gas delivery facilities relating to the reconstruction of the Schuyler Heim Bridge; and
Authorize City Manager, or designee, to execute all documents necessary to enter into a Collectible Work Agreement with the Southern California Gas Company (SoCalGas), for costs to upgrade the natural gas delivery facilities in relating to the reconstruction of the Schuyler Heim Bridge, for a total amount not to exceed $3,500,000. (District 1)
DISCUSSION
Alameda Corridor Transportation Authority (ACTA), acting as a Caltrans Local Agency through a Cooperative Agreement (No. 07-4872) with the State of California, has coordinated the relocation of utility facilities in conflict with the Schuyler Heim Bridge Project. The existing bridge spanning the Cerritos Channel is currently being replaced due to seismic concerns and maintenance costs. ACTA will enter into a Caltrans Utility Agreement as well as an Amended and Restated Relocation Agreement with City of Long Beach (City) to reimburse the City and Southern California Gas Company (SoCalGas) for all costs associated with the upgrade of natural gas delivery facilities impacted by the bridge project. The impacted facilities include SoCalGas’ metering station, which delivers natural gas to Long Beach Energy Resources (ER) at a location adjacent to the bridge project and is an important natural gas supply source for the downtown Long Beach area. The City and SoCalGas will incur costs for engineering, materials, and construction activities related to the upgrade of natural gas delivery facilities.
On August 11, 2015, the City Council approved an agreement with ACTA for the reimbursement of natural gas pipeline relocation costs relating to the reconstruction of the Schuyler Heim Bridge and reimbursement to the City and SoCalGas for costs relating to the relocation of natural gas delivery facilities. Phase 1 of the work, which involved the temporary relocation of the natural gas delivery facilities to its current location, has been completed. Phase 2 of the work involved the relocation of the natural gas delivery facility from its current temporary location to a permanent location. To streamline operations, the City decided to keep the natural gas delivery facility at its current location and upgrade the facility in-lieu of a relocation.
The agreements will require ACTA to reimburse the City after project completion for all costs of engineering, project coordination, material procurement, construction, demolition, and overhead. The agreements will also include additional terms, covered notices, documentation, cost and work scope revisions, insurance, and miscellaneous requirements acceptable to both parties. ER will advance payment to SoCalGas for expenses related to the work, in an amount not to exceed $3,500,000.
This matter was reviewed by Deputy City Attorney Richard F. Anthony and Business Services Bureau Manager Tara Yeats on January 5, 2021, and by Revenue Management Officer Geraldine Alejo on January 12, 2021.
TIMING CONSIDERATIONS
City Council action is requested on February 2, 2021, to allow for the uninterrupted continuation of the project and payment.
FISCAL IMPACT
The total project cost is estimated at $4,458,544, which includes engineering, project coordination, material procurement, construction, demolition, and overhead. The total project cost also includes City payment to SoCalGas in an amount not to exceed $3,500,000 for their work to upgrade the natural gas delivery facilities. The project is currently budgeted in the Gas Fund Group in the Energy Resources Department. Total project costs, including payment to SoCalGas, will be fully offset by reimbursement revenues from ACTA. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
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[Enter Body Here]
Respectfully Submitted,
ROBERT DOWELL
DIRECTOR OF ENERGY RESOURCES
APPROVED:
THOMAS B. MODICA
CITY MANAGER