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HomeMy WebLinkAboutReso 39-2020 (20-235)• City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Council Resolution: RES 39-2020 File Number: 20-235 Enactment Number: RES 39-2020 RESOLUTION APPROVING REIMBURSEMENT FOR PINEFINO LLC FOR UNDERGROUNDING UTILITIES IN EXCESS OF OBLIGATION AT 211 AIRPORT BOULEVARD IN SOUTH SAN FRANCISCO WHEREAS, on September 3, 2015, the Planning Commission granted entitlements to a 69 -unit, multi -family residential development, located at 211 Airport Boulevard to Pinefino LLC, owned by Edwin Law; and WHEREAS, as part of the conditions of approval, Condition 8, the development was required to make off-site improvements in the right-of-way, including new sidewalk, curb and gutter, planting of new street trees, installation of new light poles and undergrounding all overhead utilities. WHEREAS, when Pinefino LLC was preparing the construction drawings, subsequent to entitlements, they indicated that as part of undergrounding utilities along the project frontage, the street would require a new pole at the property line; and WHEREAS, the staff team overseeing this project (including the Chief Planner, City Engineer, Assistant City Manager, and Economic and Community Development Director, along with other line staff jointly determined that it was in the best interest of the City for Pinefino LLC to underground all utilities along the street for the remainder of the block, up to Grand Avenue; and WHEREAS, the rationale for this was to achieve the City's goal of undergrounding utilities on Downtown sidewalks in the most cost efficient manner, and minimize the impact to business owners because Pinefino LLC was already undergrounding utilities on part of Cypress Avenue; and WHEREAS, Pinefino LLC agreed to underground all utilities on the rest of the block so long as Pinefino LLC would be reimbursed for this additional work; and WHEREAS, Pinefino LLC completed the work that was agreed upon and now requests reimbursement of $235,612.21. Pinefino LLC provided documentation of the costs incurred in performing the additional undergrounding work. The City Engineer reviewed the documentation and work performed and believes that the requested amount of $235,612.21 is reasonable; and WHEREAS, the staff recommends that the City Council approve the Reimbursement Agreement for work conducted in excess of Pinefino LLC's obligation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby: City of South San Francisco Page 1 File Number: 20-235 Enactment Number: RES 39-2020 1. Approves the Reimbursement Agreement with Pinefino LLC, attached hereto as Exhibit A and incorporated herein; and 2. Authorizes the City Manager, or his designee, to execute the Reimbursement Agreement and any related documents, subject to review and approval as to form by the City Attorney; and 3. Authorizes the City Manager to take any other related actions necessary to carry out the intent of this Resolution. At a meeting of the City Council on 4/8/2020, a motion was made by Councilmember Nagales, seconded by Councilmember Nicolas, that this Resolution be approved. The motion passed. Yes: 5 Mayor Garbarino, Vice Mayor Addiego, Councilmember Nagales, Councilmember Nicolas, and Councilmember Matsumoto 4Attest by _ iosa Govea Acosta, City Clerk City of South San Francisco Page 2 AGREEMENT FOR REIMBURSEMENT TO PINEFINO LLC FOR UNDERGROUNDING UTILITIES IN EXCESS OF OBLIGATION This Agreement for Reimbursement of Undergrounding Utilities ("Agreement") is entered into by and between the City of South San Francisco, a municipal corporation organized under the laws of the State of California, and Pinefino LLC, a California Domestic Limited - Liability Company, this 25th day of March, 2020 ("Effective Date"), with reference to the facts set forth in the Recitals below. RECITALS A. On September 3, 2015, the Planning Commission granted entitlements to a 69 - unit, multi -family residential development, located at 211 Airport Boulevard to Pinefino LLC, owned by Edwin Law. B. As part of the conditions of approval, Condition 8, the development was required to make off-site improvements in the right-of-way, including new sidewalk, curb and gutter, planting of new street trees, installation of new light poles and undergrounding all overhead utilities. C. When Pinefino LLC was preparing the construction drawings, subsequent to entitlements, Mr. Law indicated that as part of undergrounding utilities along the project frontage, the street would require a new pole at the property line. D. City representatives met and decided that the new pole defeated the purpose of undergrounding utilities, and that it was in the best interests of the City for Pinefino LLC to underground all utilities along Cypress Street for the remainder of the block (i.e., from Baden to Grand Ave.) E. Pinefino LLC agreed to underground utilities on the rest of the block so long as Pinefino LLC would be reimbursed for this additional work. F. Pinefino LLC completed the additional utility undergrounding work and now requests reimbursement of $235,612.21. G. The City Engineer reviewed this request and believes that $235,612.21 is a reasonable request. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows: AGREEMENT 1. Reimbursement for Undergrounding Utilities in Excess of Obli ag tion. The City agrees to reimburse Pinefino LLC for undergrounding utilities in excess of obligation for the 211 Airport Boulevard development. City agrees to pay Pinefino LLC $235,612.21, which equals the amount that Pinefino LLC has demonstrated to the satisfaction of the City Engineer was the actual and reasonable cost for the undergrounding of utilities on Cypress Avenue. Documentation of actual costs of utility undergrounding work is attached as Exhibit A. 2. Hold Harmless and Indemnification. To the fullest extent permitted by law, Pinefino LLC agrees to indemnify, defend (with counsel acceptable to the City), and hold harmless the City of South San Francisco and its elected and appointed officers, employees, agents, contractors and consultants (collectively, the "City Indemnitees") from and against any and all liability, loss, damage, claims, expenses and costs (including, without limitation, attorneys' fees and costs of litigation) (collectively, "Liability") of every nature arising out of or in connection with this Agreement and/or activities authorized by this Agreement, except such Liability caused by the negligence or willful misconduct of the City Indemnitees. 3. No Relief of Other Obligations. This Agreement does not relieve Pinefino LLC from performing any and all other obligations relating to the 211 Airport Boulevard Project. 4. Default. In the event of default by Pinefino LLC, the costs and expenses of City for which Pinefino LLC shall be liable shall include but not be limited to the City's costs of suit and reasonable attorney's fees. 5. Independent Contractor. Pinefino LLC is an independent contractor and nothing contained in this agreement shall be construed as creating an employer/employee or principal/agent relationship between City and Pinefino LLC. 6. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue to be in full force and effect. 7. Term. This Agreement is effective upon execution unless otherwise modified in writing by mutual agreement of the parties. 8. Execution in Counterparts. This Agreement may be executed in counterparts and/or by facsimile or other electronic means, and when each Party has signed and delivered at least one such counterpart, each counterpart shall be deemed an original, and, when taken together with other signed counterpart, shall constitute one Agreement, which shall be binding upon and effective as to all Parties. 9. Entire Agreement. This Agreement represents the entire and integrated agreement between the Parties. This Agreement may be modified or amended only by a subsequent written agreement signed by both Parties. 10. Knowing and Voluntary Execution. Both parties to this Agreement have had the opportunity to be advised by and to have this Agreement reviewed by legal counsel of their choosing. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date written above. CITY OF SOUTH SAN FRANCISCO 0 Mike Futrell, City Manager Attest: City Clerk Approved as to form: City Attorney DEVELOPER: PINEFINO LLC, a California Domestic Limited -Liability Company By: Edwin Law, Owner Exhibit A (Documentation of Utility Undergrounding Costs) 3496900.4