HomeMy WebLinkAbout11/4/2009 - STAFF REPORTS - 2.K. .+0 paL41 gp�
iy
c
V N
c9`'p°R�'P. CITY COUNCIL STAFF REPORT
Date: November 4, 2009 CONSENT CALENDAR
Subject: APPROVAL OF A LIABILITY IN DISPUTE UTILITY AGREEMENT WITH
SOUTHERN CALIFORNIA EDISON FOR THE INDIAN CANYON DRIVE /
INTERSTATE 10 INTERCHANGE WIDENING PROJECT
From: David H. Ready, City Manager
Initiated by: Public Works and Engineering Department
SUMMARY
The City, as Lead Agency on the Indian Canyon Drive / Interstate 10 Interchange
Project (1-10 Project"), has continued to make progress with right-of-way acquisition
and utility coordination. All utilities have been located, and the necessary relocation or
adjustment of utilities as part of the 1-10 Project has been identified. A utility agreement
was previously approved with Southern California Edison ("SCE"), however, the City
and SCE have been unable to resolve the appropriate method of calculating the City's
share of the cast to relocate SCE's utilities, and a revised utility agreement is required.
RECOMMENDATION:
1) Terminate Agreement No. 5893, a State of California, Department of
Transportation, Utility Agreement Number 21532 between the City of Palm
Springs and Southern California Edison (Transmission) for relocation of electrical
transmission facilities for the Indian Canyon Drive / Interstate 10 Interchange
Project (City Project 00-14); and
2) Approve Agreement No. a State of California, Department of
Transportation, Liability in Dispute Utility Agreement Number 21532 between the
City of Palm Springs and Southern California Edison (Transmission) for
relocation of electrical transmission facilities for the Indian Canyon Drive !
Interstate 10 Interchange Project (City Project 00-14); and
3) Authorize the City Manager to execute all necessary documents.
9TrvM 10,
Indian canyon Drive/Interstate 10 Project
SCE Utility Agreement
November 4,2009
Page 2
STAFF ANALYSIS:
The City, as Lead Agency on the Indian Canyon Drive / Interstate 10 Interchange
Project (1-10 Project"), has continued to make progress with right-of-way acquisition
and utility coordination. All work related to the 1-10 Project is coordinated with the State
of California, Department of Transportation ("Caltrans"). A Cooperative Agreement
between the City and Caltrans for the 1-10 Project outlined responsibilities of Caltrans
and the City during the environmental, design and right-of-way phases of the 1-10
Project.
Since the City completed the environmental phase of the 1-10 Project, and obtained final
environmental approval on November 16, 2006, the right-of-way phase work has
continued. The right-of-way phase includes not only acquisition of all required right-of-
way, but coordination of all necessary utility relocation work with the various utility
companies. As this project is a locally funded State Highway Project, and the right-of-
way work (specifically utility relocation) is being performed by the City on behalf of and
for Caltrans, Caltrans requires that all utility relocation work be performed in accordance
with their requirements and agreements with the utility companies.
Caltrans has master contracts with the various utility companies that outline the
responsibilities of Caltrans and the utility companies with regard to the disposition of
utilities within state highway right-of-way. These master contracts establish an equal
share (50%/50%) of the cost to relocate utilities within state highway right-of-way
between Caltrans and the utility companies. Caltrans entered into these master
contracts to streamline the process to relocate utilities as part of any State Highway
Project, eliminating any protracted legal process to determine prior rights and financial
liability for relocation of utilities.
Whereas on typical City projects outside of any state highway right-of-way, the City's
franchise agreements with each utility company require the utility companies to remove
or relocate their facilities in City right-of-way when required by the City, utility relocation
work for the 1-10 Project is governed by Caltrans' existing master contracts with the
utility companies since the work occurs in state highway right-of-way. Therefore,
Caltrans requires that the City enter into utility agreements with each utility company
that has facilities to be relocated as part of the 1-10 Project.
On September 2, 2009, the City Council approved Utility Agreements with the following
utilities:
Southern California Edison (Distribution)
• Southern California Edison (Transmission)
• Southern California Gas Company
Verizon California, Inc.
Caltrans requires the City to use the standard Caltrans Utility Agreements with each
utility company. The Agreements simply identify the required utility relocation work, the
L
Indian Canyon Drive/interstate 10 Project
SCE Utility Agreement
November 4,2009
Page 3
financial liability of each party (in this case, an equal share of the cost), who will perform
the utility relocation work (in this case, each utility company will relocate their facilities
during construction of the 1-10 Project), and payment procedures.
In reviewing SCE's estimated cost to relocate their utilities, the City's consultant
(Dokken Engineering) brought to our attention the fact that SCE's estimate incorrectly
calculated the City's 50% share for the work. Specifically, SCE's estimate includes
costs to install a new circuit on the overhead high-voltage power lines that are being
relocated for our project. The new circuit expands the capacity of SCE's utility, and is
considered a "betterment" for which the City has no liability and is to receive credit.
Further, in accordance with the terms of the Caltrans master contract with SCE, the City
is to receive credit for salvage and depreciation of the relocated utilities.
The City does not dispute SCE's estimated costs and credits; the City disputes the
manner in which the City's 50% share is calculated after considering credits due. SCE's
estimate is calculated as follows:
Labor: $86,717.00
Material $226,901.00
Contract: $58,379.00
Salvage: ($1,478.00)
Depreciation: ($10,347.54)
System better credit: ($70,837.00)
CRE: $43,40025
Total: $332,734.71
50% City expense: $166,367.36
In this way, SCE's estimate considers the credits before equally dividing the total cost
between the City and SCE. Therefore, the credits for system betterment, salvage and
depreciation are also being equally shared instead of being applied entirely to City's
50% share. The City has prepared its own estimate using SCE's amounts, as follows:
Labor: $86,717.00
Material: $226,901.00
Contract: $58,379.00
CRE: $43,400.25
Sub-Total: $415,397.25
50% City expense. $207,698.63
Salvage: ($1,478.00)
Depreciation: ($10,347.54)
System better credit: ($70,837.00)
Total City Expense: $125,036.09
_ ,1
Indian Canyon Drive/Interstate 10 Project
SCE Utility Agreement
November 4,2009
Page 4
The resulting disparity between SCE's and City's estimate is $41,33127. The City
requested that Caltrans review the City's estimate and to determine if the method of
calculating the estimate and considering credits due was consistent with the master
utility agreement between Caltrans and SCE. Caltrans determined that the City's
estimate was appropriate.
SCE is disagreeing that the City's estimate is correct, based on the fact that SCE has
prepared many estimates for utility relocation work for Caltrans state highway projects,
pursuant to its master utility agreement, which were reviewed and approved by
Caltrans. Additionally, SCE disagrees with the City's method of calculation as it would
set new precedence for SCE in all future projects.
Caltrans, although having approved estimates prepared by SCE in this way in the past,
agrees that the City's approach is the appropriate method, and in the case of any
system betterment, 100% of the credit for that work should be applied to the City's (or
Caltrans') share of the cost. Given Caltrans' determination that the City's estimate is
correct and SCE does not, Caltrans is now requiring that the City enter into a "Liability in
Dispute Utility Agreement" in lieu of the original utility agreement previously approved by
Council. Therefore, in order to move forward with this project, it is necessary to
terminate the previously approved utility agreement with SCE and approve the new
agreement, which preserves the City's argument while allowing the project to move
forward. The matter of whose calculation is correct will be resolved in the future, by
mediation or another approved method.
FISCAL IMPACT.
The estimated cost to relocate the SCE transmission lines is $416,397.25 of which the
City and SCE share 50% equally. However, after considering appropriate credits for
system betterment, salvage and depreciation, the City's 50% share is calculated as
$125,036.09. SCE has determined the City's share is $166,367.36, resulting in a
disparity of $41,33127. In accordance with the terms of the agreement, this disparity
will be deposited up front into a separate accounting pending final resolution of which
method of calculation is correct. Sufficient funds are available in the Regional Measure
A account 134-4497-50185 (Indian/1-10 Interchange).
Indian Canyon Drive/Interstate 10 Project
SCE Utility Agreement
November 4,2009
Page 5
Prepared by: Recommended by:
Marcus L. Fuller David J. Barakian
Assistant Director of Public Works Director of Public Works/City Engineer
Approved by:
Thomas J. Wilson, Asst. City Manager David H. Ready,Ci ager
ATTACHMENTS:
1. Agreement
STATE OF CALIFORNIA•DEPARTMENT OF TRANSPORTATION
LIABILITY IN DISPUTE UTILITY AGREEMENT#21532 Page 1 of 4
EXHIBITI3-EX-17(REV 4l2009)(Form#)
E.A.: 455701
Fed. Aid No.: N/A
Owner's File No: WEP-00644/CAL200491176
UTILITY AGREEMENT NO. 21532
WHEREAS, the City of Palm Springs, a California charter city, hereinafter called City, is the Lead Agency on
the reconstruction of the Indian Canyon Drive (formerly Indian Avenue) at Interstate 10 Interchange, hereinafter
referred to as"the 1-10 Project", and
WHEREAS, as the I-10 Prefect is considered an "On-System" state highway project, affecting Interstate 10,
requires the City to coordinate the 1-10 Project with the State of California, acting by and through the Department of
Transportation, hereinafter referred to as"State"; and
WHEREAS, the 1-10 Project necessitates the relocation of certain utility facilities owned, operated and
maintained by Southern California Edison (An Edison International Company), hereinafter referred to as "Owner";
and
WHEREAS, relocation of Owner's utility facilities as part of City's 1-10 Project must comply with State's rules
and regulations, including the Master Freeway Agreement between State and owner, dated November 1, 2004,
hereinafter referred to as the"Master Agreement", a copy of which is incorporated hereto as Attachment"A"; and
WHEREAS, the City has issued Notice to Owner No. 21532 dated August 12, 2009, further amended on
October 21 20092009, incorporated hereto as Attachment"B", to Owner, which Notice to Owner sets forth the terms and
conditions pursuant to which Owner has been ordered to relocate certain Owner's facilities to clear the City's 1-10
Project, and,
WHEREAS, City, in order to clear the right of way for the 1-10 Project, has ordered Owner to relocate the
portions of its facilities within said Notice to Owner, hereafter referred to as "Owner's facilities", and;
WHEREAS, City and Owner have agreed that Owner does not have rights that are prior and superior to
those of City and agrees to relocate Owner's facilities as ordered with a shared liability of cost defined as 50% City
expense and 50% Owner expense in accordance with Section 5.0 of the Master Agreement, said right described in
attached Notice to Owner, and;
WHEREAS, Owner has, an its own initiative, determined to install new facilities during relocation of Owner's
facilities as part of City's 1-10 Project, hereinafter referred to as "Owner's new facilities", and
WHEREAS, the installation of Owner's new facilities are not required by or in any way related to City's 1-10
Project or the required relocation of Owner's facilities; and
WHEREAS, in accordance with Section 2.0 of the Master Agreement, Owner's new facilities are considered
a"betterment", and
WHEREAS, Owner has prepared an estimate for relocation of Owner's facilities, identified by Transmission
Order Number 800310444, hereinafter referred to as "Owner's estimate", wherein the shared liability of cost
between City and Owner is calculated aS follows
Labor: 386,717.00
Material: $226,901.00
Contract: $58,379.00
Salvage: ($1,478.00)
Depreciation: ($10,347.54)
System better credit: ($70,837.00)
Sub-Total: $289,335.46
CRE: S43,400.25
Total: $332,734,71
50% City expense. $166,367.35
STATE OF CALIFORNIA•DEPARTMENT OF TRANSPORTATION
LIABILITY IN DISPUTE UTILITY AGREEMENT #21532 Page 2 of 4
EXHIBITI3-EX-17(REV 4/2009)(Form#)
WHEREAS, City has reviewed the Master Agreement, and finds that Section 6.A of the Master Agreement
requires the City to receive credits for"The amount of any betterment to the Utility Facility', and "The salvage value
of any materials or parts salvaged and retained by Owner", and depreciation value; and
WHEREAS, in accordance with City's understanding of Section 6.A of the Master Agreement, City has
prepared its own estimate for relocation of Owner's facilities using the same costs and credits provided by Owner in
Owner's estimate, hereinafter referred to as "City's estimate', wherein the shared liability of cost between City and
Owner is calculated as follows:
Labor: $86,717,00
Material: $226,901.00
Contract: S58,379.00
CRE. $43,400.25
Sub-Total, $415,397,25
50% City expense: $207,698.63
Salvage: ($1,478.00)
Depreciation: ($10,347.54)
System better credit: ($70,837.00)
Total City Expense: $125,036.09
WHEREAS, Owner's estimate and City's estimate result in a disparity of$41,331,27 as the 50% City share
for relocation of Owner's facilities, hereinafter referred to as the"cost disparity", and
WHEREAS, City has requested State review of City's estimate, and State has agreed that City's estimate is
appropriate and consistent with the terms of the Master Agreement; and
WHEREAS, Owner has determined that Owner's estimate is appropriate and consistent with the terms of
the Master Agreement, and is consistent with past practice and history of prior estimates prepared for and approved
by State; and
WHEREAS, in accordance with Section 706 of the Streets and Highways Code, City may, without prejudice
to its rights, or that of Owner, advance the costs of removal or relocation, and upon advancement by City of said
costs, Owner shall remove or relocate Owner's facilities as stated in the attached Notice to Owner so as not to delay
City's I-10 Project, and,
WHEREAS, City and Owner disagree on the issue of the appropriate method of calculating the shared
liability of relocation costs in accordance with the Master Agreement, City and Owner agree that, in order to expedite
City's 1-10 Project, City shall deposit with Owner, in accordance with Section 706 of the Street and Highways Code,
the cost disparity of $41,331.27, and Owner agrees to do the relocation work as set forth in Notice to Owner No.
21532 dated August 12, 2009, further amended on October 21, 2009, incorporated hereto as Attachment"B".
LIABILITY IN DISPUTE UTILITY AGREEMENT# (Cont.) Page 3 of 4
EXHleITI3-EX-17(REV 412009) (Form#)
Utility Agreement No, 21532
NOW THEREFORE, it is agreed between City and Owner as follows:
1. Within 30 days of City's execution of this Agreement, City shall advance Owner 100% of the cost disparity,
which advance shall be $41,331.27,
2. Owner shall relocate Owner's facilities in accordance with Notice to Owner No. 21532 dated August 12
2009, further amended on October 21, 2009, incorporated hereto as Attachment"B".
3. Owner shall place the advance in a separate interest-bearing account pending final resolution of liability, and
shall pay City all accrued interest, if Owner's estimate is found to be calculated inconsistent with the terms of
the Master Agreement, and City's estimate is determined to be correct.
4. In signing this Agreement, neither City nor Owner diminishes its position, waives any of its rights or accepts
liability.
5. City and Owner reserve the right to have such liability resolved by future negotiations or by an action in a
court of competent jurisdiction pursuant to the provisions of Section 706 of the Streets and Highways Code.
6. Owner agrees to perform the herein-described work with its own forces or by the Owner's contractor and to
provide and furnish all necessary labor, materials, tools and equipment required therefore, and to prosecute
said work diligently to completion.
7. It is understood and agreed that the City will not pay for any betterment or increase in capacity of Owner's
facilities in the new location and that Owner shall give credit to the City for all accrued depreciation on the
replaced facilities and for the salvage value of any material or parts salvaged and retained or sold by Owner.
S. Owner shall submit a Notice of Completion to the City within 30 days of the completion of the work
described herein.
9. It is understood that said highway is a Federal Aid Highway and, accordingly, 23 CFR 645 is hereby
incorporated into this Agreement by reference, provided, however, that the provisions of any agreements
entered into between the City and Owner pursuant to State law for apportioning the obligations and costs to
be borne by each, or the use of accounting procedures prescribed by the applicable Federal or State
regulatory body and approved by the Federal Highway Administration, shall govern in lieu of the
requirements of said 23 CFR 645.
S
LIABILITY IN DISPUTE UTILITY AGREEMENT # (Cont.) Page 4 of 4
FXHIBIT13-EX-17(REV 4/2009) (Form M)
Utility Agreement No. 21532
THE ESTIMATED COST FOR THE ABOVE DESCRIBED WORK IS $415,397.25, of which City's share (after
consideration of applicable credits) is$166,367.36, and City's disputed share amount is$125,036.09.
R/W Funds EA 455701 $ 166 367.36
Const, Funds EA $
IN WITNESS WHEREOF, the parties hereto have executed this Utilities Agreement this i day of
2009.
CITY: OWNER:
By: By:
David H. Ready Date Name/Title Date
City Manager
ATTESTED BY:
By: By-
James Thompson Date Name/Title Date
City Clerk
ATTACHMENT "A"
MASTER FREEWAY AGREEMENT
FREEWAY MASTER CONTRACT
BETWEEN
CALIFORNIA DEPARTMENT OF TRANSPORTATION
AND
SOUTHERN CALIFORNIA EDISON COMPANY
PARTIES:
The State of Califomia, acting by and through its Department of Transportation ("Department"), which term
"Department" includes its officers, agents, contractors, successors, assigns and other public agencies
performing projects in connection with Department's Freeway system, and Southern .a].i rorni a
Edison Company ("Owner"), which teen "Owner" includes its officers,
agents, contractors, successors and assigns,
hereby agree cfiective this.i,r day of November , 2021 , as follows:
RECITALS:
A. Owner owns, operates or maintains, in the State of California, Utility Facilities as defined in Section
700 of the Streets and Highways Code. Certain of Owner's Utility Facilities may be operated under
regulations of the California Public Utilities Commission.
11. Department has various Freeway Projects throughout the State of California and from time to time
these projects require the Relocation of Owner's Utility Facilities-
C. The cost of such Relocation is presently apportioned between Department and Owner as provided for in
the statutes of the State of California and/or existing Masser Agreements,
D. Pursuant to Section 707.5 of the Streets and Highways Code, Department and Owner desire to enter
into a contract apportioning the obligations and costs of the above-referenced Relocations to be bome
by each party.
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained in this
Freeway Master Contract and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged,Department and Owner agree as follows:
1. This Freeway Master Contract ("Master Contract"), in accordance with the provisions of Section 707.5 of
the Streets and Highways Code ("S&H Code") shall govern exclusively the deteriination of the
obligations and costs to be borne by Department and Owner in regard to Utility Facility work described
herein in lieu of determinal0ou under the current provisions of Sections 702 to 707, inclusive, of the S&H
Code and all other laws, and prior contracts and agreements which would be applicable to the
determination of liability or the obligation for costs incurred in connection with this work. This Master
Contract shall apply throughout the State of California to all of Department's Freeway Projects.
Page 1 of
FREEWAY MASTER CONTRACT
Page 2
2. As used in this Master Contract, the following terms have the following meanings:
(A) "Freeway" means-
1. a highway, together with any designated frontage roads, under the jurisdiction of the
Department in respect to which, and along the right-of-way of which, the owners of
abutting lands have no right or easement of access to or from thetr abutting lands or only
limited or restricted right or easement of such access; or
2. a like contemplated highway together with any designated frontage roads, where the
California Transportation Commission has selected, adopted and determined the location
of the same and declared the same to be a State freeway, and Department has approved a
right-of-way map in conjunction with its property appraisal, which map delineates the
limited or restricted right or easement of access. Said maps shall be available for
inspection by Owner-
(B) "Freeway Project" means a project in connection with Department's freeway system by
Department or others which includes, but is not limited to, work occasioned by and of benefit to
the construction, improvement, maintenance, operation or use of a freeway, and which may
include such work within the right-of-way of a freeway or any nther public road or on other real
property.
(C) "Notice to Owner" means a formal written demand as required by law and as defined in Section
673 of the S&H Code.
(D) "Relocation" means removal, relocation, protection or any other rearrangement of Owner's
Utility Facility as ordered and approved by Department to accommodate Department's Freeway
Project. Relocation shall include, but not be limited to: preparation and submission by Owner
and approval by Department of relocation plans or drawings sufficiently engineered to allow
construction of the ordered Relocation, and a detailed estimate by Owner of the actual and
necessary cost of the ordered Relocation.
(E) "Wasted World' means design or construction work performed by Owner, upon written
direction from the Department, for a Relocation rendered useless or unnecessary as a result of
the Deparuent's cancellation and/or scope of changes as agreed by both parties of the specific
Freeway Project.
(F) "Batterment" means.the difference in cost between the intended Relocation of Owner's Utility
Facility proposed and submitted by Owner for Department's approval and a Relocation which
would provide the Owner with equivalent substitute Utility Facilities for those Utility Facilities
requiring Relocation to accommodate Department's project. As employed herein, betterment
does not include those differences in cost caused by changes in manufacturing standards,
availability of materials, or regulatory requircmcnt.
Page 2 of 7
FREEWAY MASTER CONTRACT
Pave 3
(G) "Private Right-of-Way of Owner" means a property right held by Owner in the form of either a
recorded or fully executed deed in the usual fomt or other valid instrument recorded or fully
executed and conveying a permanent property right for the Utility Facility in a defined area of
real property, or a defined area within the State highway right-of-way that is subject to a
recorded Joint Use Agreement (.NA) or Consent To Common Use Agreement (CCUA)
(H) "Hazardous Matenal(s)" means any hazardous substance, hazardous material, or hazardous
waste as defined under state or federal law.
3. The work to be performed under this Master Contract shall be all work necessary to accomplish Relocation
of Owner's existing Utility Facilities as necessitated by Department's Freeway Project.
4. All work under this Master Contract shall be preceded by the issuance of a written Notice to Owner by
Department.
S. The cost of all work to complete the Relocation of Owner's existing Utility Facilities necessitated by
Department's Freeway Project shall be calculated pursuant to the provisions of Paragraph 6 and shall be
allocated as follows:
(A) Department shall pay one hundred percent (100%) of the cast of Relocation of Owner's existing
facilities located in a Private Right-of-Way of Owner, upon delivery by Owner to Department a
copy of such Private Right-of-Way concurrent with timely submission of Owner's relocation
plan to Dcpartrnent.
(B) Owner shall pay one hundred percent (100%) of the cost of Relocation of Owner's Utility
Facilities originally installed within State Right-of-Way pursuant to Department's
Encroachment Permit and without benefit of a valid franchise-
(C) In all other circumstances, including but not limited to Owner's existing Utility Facilities in
place pursuant to a valid franchise, statute, or non-perfected claim of prescription, the cost of
Relocation of Owner's existing Utility Facilities shall be borne equally by Department and
Owner.
6 Cost of Relocation includes the actual and reasonable cost of all necessary engineering, labor and
❑•ansportation, and all necessary materials exclusive of any dismantled Utility Facilities used in any
Relocation, together with reasonable and usual indirect and overhead charges attributable to that work, and
any necessary new private Utility Facility Dght-of-way involved in the Relocation, except:
(A) In any case in which Department is required under the provisions of this Master Contract to pay
its share of the cast of Relocation of any Utility Facility, the Department shall he entitled to
credits as follows:
1. The amount of any betterment to the Utility Facility resulting from such Relocation.
l
Page a of 7
FREEWAY MASTER CONTRACT
Page 4
2. The salvage value of any materials or parts salvaged and retained by Owner.
3. if a new Utility Facility or portion thereof is constructed to accomplish such Relocation,
an amount bearing the sarne proportion to the original cost of the displaced facility or
portion thereof as its age bears to its normal expected life.
Age of facility
Credit = x Original cost
Normal expected life
()3) A credit shall not be allowed against any portion of the cost that is otherwise chargeable to
Owner.
(C) A credit allowance for age shall not be applied to publicly-owned sewers.
7. This Master Contract does not apply to:
(A) The positive location of underground Utility Facilities.
(B) Buildings or any Utility Facilities located therein or thereon, whether of not devoted to public
use.
(C) Telecommunications facilities, including, but not limited to, wireless antennae and related
equipment and/or fiber optic lines, installed pursuant to an agreement with specific provisions
relating to the removal or relocation of the telecommunication facilities. Such an agreement
includes, but is not limited to, the Master License Agreement for Cellular and PCS Carriers and
any agreement or permit for the longitudinal use of controlled access iigbt-of-way facilities
such as freeways, expressways and bridges.
(D) "Service" utility facilities for which Department is the regularly billed sole customer for the
commodity provided, or as defined by California Public Utilities Commission.
8. Where Owner is the owner of a part of, or of a present undivided part interest in, any Utility Facility, this
Master Contract shall apply to the extent of such interest.
9. For each Relocation, Department and Owner shall enter into a project specific Utility Agreement setting
forth, among other thins, the Relocation arrangements between the parties regarding cost apportionment,
billing, payment, documentation, documentation retention, and accounting, generally using the standard
clauses and form published in Department's current Riglu-of-Way and Contracts manuals.
Page 4 of 7
FREEWAY MASTER CONTRACT
Page 5
10. Upon the issuance of a Notice to Owner, or as otherwise agreed upon in the specific Utility Agreement,
the Owner shall diligently undertake, or cause to be undertaken, the Relocation of its Utility Facilities in
accordance with Department's reasonable schedule.
11. Department will pay, in its entirety, that pariion of the cost of the Relocation constiruting Wasted Work.
The remainder of the cost of that Relocation shall be borne pursuant to the cost allocation provisions
defined in Paragraph 5.
12. If Department requires the Relocation within its right-of-way of any Utility Facility more than once
during a four-year period, Department shall pay the cost of that second Relocation, and any subsequent
additional Relocations of that Utility Facilitv within such four-year period on any subsequent or
additional project.
13. Upon discovery of Hazardous Material in connection with the Relocation, both Owner and Department
shall immediately confer to explore all reasonable alternatives and agree on a course of action, and
Owner shall immediately reschedule the work to complete the Relocation in accordance with
Department's reasonable schedule and in compliance with existing statutes or regulations concerning the
disposition of Hazardous Material.
(A) Department will pay, in its entirety, those costs for additional necessary effort undertaken within
State's right-of-way to comply with existing statutes or regulations concerning the disposition of
Hazardous Material found as a consequence of that Relocation, unless such conditions are
attributable to Owner's existin.-installation or operation.
(B) Those costs for additional necessary efforts undertaken within the area of the replacement property
right located outside State's right-of-way which are required to comply with existing statutes or
regulations concerning the disposition of Hazardous Material shall be allocated between the
parties pursuant to the hereinabove provisions of Paragraph 5.
(C) Hach party to this Master Contract retains the tight to pursue recovery of its share of any such
Hazardous Material related costs from the other party or third parties in accordance with existing
law.
14. Whenever Owner's affected Utility Facilities will remain within the existing Private Right-of-Way of
Owner, and these Utility Facilities will fall within the right-of-way of a public road under the jurisdiction
of the Department, Department and Owner shall jointly execute an agreement for common use of the
subject area which agreement shall also confirm any prior rights held by Owner in said Private Right-of-
Way of Owner.
Page 5 at 7
FREEWAY MASTER CONTRACT
Page 6
15. Whenever Owner's affected Utility Facilities will be relocated from the existing Private Right-of-Way of
Owner to a new location that falls outside such existing Privatc Right-of-Way of Owner, the Department
shall convey or cause to be conveyed a new right-of-way for such relocated Utility Facilities as will
correspond to the existing Private Right-of-Way of Owner_ For such Relocations, the Department shall
issue, or cause to be issued, to Owner, without charge to Owner or credit to Depa=om, appropriate
replacement rights in the new location mutually acceptable to both Department and Owner for those
rights previously held by Owner in its existing Private Right-of-Way. In discharge of Department's
obligations under this Paragraph, in the event that the new location falls within the right-of-way of a
public road under the jurisdiction of Department, Department and Owner shall jointly execute an
agreement for joint use of said new area which agreement shall also confirm any prior rights held by
Owner in said Private Right-of-Way of Owner_ In consideration for these replacement rights being issued
by Department, Owner shall subsequently convey to Department, or its nominee, within Department's
Right-of-Way, all of its corresponding right, title and interest within Owner's existing Private Righz-of-
Way so vacated.
16. If the existing Private Right-of-Way of Owner includes fee title, Department shall acquire fi•anr Owner,
for just compensation under State law, those property rights required by Department for the public
roadway by separate transaction, leaving to Owner those remaining property rights appropriate for the
placement and operation of Owner's Utility Facilities in the Private Right-of-Way of Owner.
17. This Master Contract shall inure to the benefit of, and shall be binding upon, the successors and assigns
of the parties.
18. This Master Contract may be amended, changed or altered by mutual consent of the parties in writing.
19, Either party, upon one year's written notice, may terminate this Master Contract, except that,
notwithstanding that termination, the provisions of this Master Contract shall remain in full force and
effect with respect to any Relocation of Utility Facilities required under a Notice to Owner issued prior to
the Master Contact termination.
20. Time shall be of the essence of this Master Contract.
21. This Master Contract supersedes any previous Master Agreement entered into between the parties under
Section 707.5 of the S&H Code. This Master Contract does not supersede any Notices to Owner or
Utility Agreements issued or executed pursuant to any previous valid Master Agreement.
22. This Master Contract shall become effective when executed by the last of the two parties.
21 No state funds or resources are allocated or encumbered as against this Master Contract and
Department's obligations and duties expressed herein are conditioned upon the passage of the annual
State Budget Act and the allocation of funds by the California Transportation Commission and the
encumbrance of funds under a project specific Utility Agreement.
c
Page 6 of 7
FREEWAY MASTER CONTRACT
Page 7
Owner
By dill Date QlG7d , it a' �00
Barbara A. Reeves _
Vice President, Shared services A'RRP
STI=PHEN E. PIC PICKETT
5r Vice 'resident and
e era l C uns L� I
�� \) br
_ICAttome
10
State of California
Department of Transportation
i
BY Datc - 1 -Z00
Chief
Division of Right of Way and Land Surveys
Approved as to form and procedure
Date v.
Atto cy for Cal forni artme tt of Transportation
2�
Page 7 of 7
STATL of CAWF OILVL,• D wp,aV^TZW OF Tlr6LNSP=T,%9'T0N
NOME To O`'tirNER
7:W l3•4 (RUV 919G)
NOTICE To C]' 1ER District Coua7tti Route PM E
09 iZ vi erside 10 32.0174.7 455701
Federal Aid No.: n!a
Number 21532
Qeuneis File: 8800310444
August 27, 2009
X7aI'e' Free
October 21, 2009 Freeway! No[ ] Yes [ 1
To: Southern California Edison
Transmission Fac lii:ies
9500 Cleveland Avenue
Ranclau Caeamonga, CA 91730
Attention! Robert Cast1ho, Oyaerations Support (909,9.44.4408)
Because of the State Idighway construction project:
The City of Palm Springs is developing a project to upgrade the emstin;; lndian Canyon Drive (formerly Indian
Avenue) Interchange, inclucling a side% ]l� on tlae west side, a bike lane in each direction, realgrinient of the
eastbound and westbound direct on- and off-ramps, and widening of 20th Avenue and Garnet Avenue, to
accommoaate existing and future traffic_ The project is located an Riverside County in the City of Palau Springs on
Interstate 10 from 0,77 li-in %vest to G.92 km east,of the Indian Canyon Drive Overcroasing.
Which affects your facilities:
The 1151V overhead electrical and transmission poles on the north side of Garnet Avenue. apprci. I km west of
Garnet Avenue.
You are hereby ordered to:
Remove the existing three (3) wooden poles and reph:ce with two (2) Lobular steel poles, in addition Lo ilac
relocation of an anchor pole for tht, 115lcV overhead ekctricai facilities pursuant to your Flan No, 5129109 dated
May 22, 2009.
Your world schedule shall be as follows:
Commence work immediately:and complete by October 1, 2010,
l�nLify Ylarcus Fuller, at telephone nurnber 760, 2' .8253 %87�14. 3 hours prior to initial start of work,
and '24 hours prior to subsequent restart,when your work schedule is interrupted.
liability of cost of the work is:
30% CITY" emense and 50°Jo OWNER e.NperL e in accordanoe with Section 5.0 of the Freeway Master Agrcement
dated November 1, 2004.
Application of credits and final 50% C1'1 expense i&'In Dispute". (Revised October 21, 009}
CITY OF PALM SPRINGS
Marcus Fuller;AssT.DmEC'I'QttOFPv LI�CW� ` ORRS
ACC: Resident Lngineer
Permits
RAT
�D
7- ES N07CE DOES NOT OOR'STITUTE A PERNUT. OBTAIN AN FKCROAC1-h1+LENT Px:1ti frf BEFOVE ST,51:TING n'ORX,