ITEM #: 4. DATE: 08/28/2023 AI #:1088 |
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CITY COUNCIL ACTION REPORT
SUBJECT: |
AGREEMENT BETWEEN CITY OF GOODYEAR AND ROOSEVELT IRRIGATION IMPROVEMENT DISTRICT (RID) TO RELOCATE RID WELL NO. 33 AND PROVIDE A REPLACEMENT WELLSITE |
STAFF PRESENTER(S): |
Mario Saldamando, Senior Project Manager |
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OTHER PRESENTER(S): |
Jay Karlovich, Assistant City Attorney |
SUMMARY |
The action before the Council is to approve an agreement with Roosevelt Irrigation Improvement District (RID) to relocate RID Well No. 33 and provide a replacement wellsite, allowing for the construction of Fire Station 188 and required offsite development. |
RECOMMENDATION |
Approve agreement with Roosevelt Irrigation Improvement District (RID) allowing for the relocation of RID Well No. 33. (Mario Saldamando, Senior Project Manager) |
FISCAL IMPACT |
The City will pay RID up to $2,095,737 to transfer the responsibility and liability to RID for the relocation of their Well No. 33. The City will provide RID a replacement well site for the well’s new location. CORE Construction, the Design-Build contractor for Fire Station 188 (Project #30007), will refund $1,850,469 to the city for the cost of relocating this well. The balance of $244,531 will be funded by the project’s contingency. No additional funding is required for this agreement. Upon Execution of the agreement $1,930,000 will be paid to RID for the complete cost of design and construction of the replacement well. Up to $165,737 will be paid to RID for lost revenue incurred while the well is offline. Lost Revenue is based upon a daily loss of $477.63 for up to 347 days. |
BACKGROUND AND PREVIOUS ACTIONS |
On July 19, 2021, Council approved the expenditure for a contract to the Design-Build team of Core construction and Perlman Architects of Arizona for the design and pre-construction of Fire Station 188. On August 29, 2022, Council approved the expenditure authority for construction and other costs for Fire Station 188. The action included the Guaranteed Maximum Price from Core Construction for the whole project (#30007), including relocation of the RID well. |
STAFF ANALYSIS |
Fire Station 188 is located within a section of an existing city-owned 8.62-acre parcel in West Goodyear. The parcel includes two easements granted to RID for the construction and maintenance of wells, pumps, and machinery. Construction of the fire station consist of offsite development including the development of road improvements, however the existing well and easement conflicts with the construction of these necessary offsite improvements. The contract with Core includes the costs to abandon the existing well and drill a replacement well in the northern portion of the parcel. There are several risks associated with drilling a new irrigation well, including uncertainties related to geologic, hydrologic, and inflationary market conditions. Both the City and RID have discussed the terms and conditions for a replacement well. RID has agreed to drill the replacement well for an amount not to exceed $2,095,000. Core construction will deduct from its contract the costs associated with relocating and drilling a new well, in an amount of $1,850,469. The remaining funds, in an amount of $244,531, will be used from the project contingencies. No additional funding is required for this agreement. |
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