SR 05:009 - Laserfiche WebLink

Katz Winery development project (the entire development includes an Event Center, Wine Tasting/Storage Building and a Barrel Storage Building), Mr. Callahan agreed to allow the City to upsize approximately 525 feet of the waterline needed for his project and charge the City the incremental cost to upsize the waterline to serve the first building of the winery development. As a result, the City entered into a reimbursement agreement with Mr. Callahan in February 2003 to upsize his required fire service pipeline as the first section of this waterline project (shown as "Phase I" in Exhibit "A"), and reimbursed Mr. Callahan $7,000 for the incremental upsizing cost. Mr. Callahan also agreed, as part of this initial agreement, to provide an ingress/egress easement in the future, through his property, which would be needed for completing the remaining portion of the pipeline construction (Phases II and III). Mr. Callahan is now constructing a private residence on the property (located at the old Ruby Hill Winery site). In order to provide fire flow to this residence in a timely manner, Mr. Callahan has agreed to construct another phase of the pipeline (Phase II), as soon as possible, so that adequate fire flow can be provided to the new home construction. Phase II: The City has negotiated a fair pro-rata share of the cost of Phase II pipeline installation and has included the cost to design the entire pipeline (the 3600 feet minus the 525 feet upsized in Phase I) within the attached reimbursement agreement. The City's cost for designing the remaining portions of the pipeline, pro-rata share for installing Phase II, and the pipeline easement, is estimated at a not to exceed amount of $135,000. This cost is made up of the construction cost ($84,000), design cost ($36,000), easement cost ($1,000) and contingency ($24,000). Funds are available with the City's CIP No. 041014 for the City's pro-rata share of the project. Construction Cost: Mr. Callahan obtained five Phase II pipeline construction bids from local underground utility pipeline contractors. City staff reviewed the bid proposal packages from each contractor that submitted a bid for the project and found them to be in conformance with the plans and specifications for the project. Ponte General Engineering Corp. Construction Company submitted the lowest bid for construction of Phase II in the amount of $120,000. Callahan Property's pro-rata share of this bid will be $36,000, which represents the approximate cost to construct an 8-inch waterline for the private residence's fire project use. The City's pro-rata share of the construction cost amount is $84,000. A standard reimbursement agreement has been prepared. Payment to Callahan Properties will be paid based on submitted progress payments with satisfactory completion of the project. FISCAL IMPACT It is estimated that the new sewer line cost of maintenance will be less than $1,000 per year. SR:05:009 Page 3 of 8