CITY COUNCIL STAFF REPORT
MEETING DATE: JUNE 1, 2016
PREPARED BY: Yat Cho, Associate Engineer, Public Works Department
APPROVED BY: City Manager
TITLE
MONTEREY ROAD UTILITY UNDERGROUND - CONTRACT
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution approving the following actions;
1. Approve a Deductive Change Order in the amount of ($177,684) to reflect amended work scope; and
2. Appropriate $300,000 from Fund 346 to Project #512093 for PG&E work contingency.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Enhancing public safety
Protecting the environment
Maintaining fiscal responsibility
2016 Focus Areas
Planning Our Community
Developing Our Community
REPORT NARRATIVE:
The City has pursued a utility undergrounding project along Monterey Road from Dunne Avenue to Cosmo Avenue utilizing PG&E's Rule 20A program for several years. Under the Rule 20A program, proceeds are collected by PG&E from rate payers and held in an account designated for Morgan Hill. The City's account, which is held by PG&E, not the City, currently receives approximately $78,000 per year and had an account balance of $2,304,416 as of April 30, 2015. The City selects the location for Rule 20A projects and the Monterey Road location was selected several years ago.
Due to significant contract disagreements between PG&E and the other utility companies with wires on the poles (Verizon & Charter) and due to continually rising PG&E costs to perform necessary work, the City has struggled to get the project completed. However, City staff and PG&E representatives have now agreed on a plan for completing the work in 2016. It is recommended that the City utilize a contractor currently under contract to perform the trenching and installment of conduits and vaults prior to PG&E forces mobilizing to install conductors, necessary wiring and hardware to complete the project.
PG&E has informed the City that there is now some urgency to complete Morgan Hill's R...
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