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Home My WebLink About29 - C-3684 - 04BA-069 - Newport Coast Elementary School Loop RoadCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 29 June 8, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department William Patapoff, P.E. 949 - 644 -3311 bpatapoff@city.newport-beach.ca.us SUBJECT: APPROVAL OF THE MEMORANDUM OF UNDERSTANDING AND REIMBURSEMENT AGREEMENT WITH THE NEWPORT -MESA SCHOOL DISTRICT FOR THE NEWPORT COAST ELEMENTARY SCHOOL LOOP ROAD - CONTRACT NO. 3684 RECOMMENDATIONS: 1. Approve the Memorandum of Understanding (MOU) and Reimbursement Agreement between the City of Newport Beach and the Newport -Mesa Unified School District for the Newport Coast Elementary School Loop Road. 2. Approve a budget amendment authorizing the transfer of excess Bonita Canyon Bond funds from the City Improvement Account to the School Improvement Account for the total anticipated project cost of $508,889. Additionally, this budget amendment will appropriate $460,007 in the Contributions Fund and $25,259 in the General Fund for anticipated project costs not yet appropriated. Finally, this budget amendment will also increase revenue estimates in the Contributions fund by $460,007 and General Fund revenue by $47,883 to reflect the reimbursement from the School District Improvement account. DISCUSSION: When the Newport Coast Elementary School opened in 2001, a little more than 300 students were enrolled. During the 2004 -05 school year, that enrollment figure is estimated to double. With the increased enrollment, the amount of traffic congestion has increased due to the additional vehicles dropping off and picking up students at the school. Currently, the vehicles enter the school parking area from Ridge Park Road to drop off and pick up the students. This area becomes very congested and backs up onto the public street causing safety concerns along the roadway. The existing area cannot accommodate the amount of school traffic, therefore a plan has been designed to alleviate this condition. SUBJECT: Approval of the Memorandum of Understanding with Newport-Mesa School District for Newport Coast Elementary Loop Road Contract No. 3684 June 8, 2004 Page 2 Exhibit A of the MOU depicts a loop road on school property that takes access from a right turn lane off of Newport Coast Drive. The road follows the school property line around the north and east boundaries of the school and connects to the existing parking lot and then exits onto Ridge Park Road. This route provides a much improved drop off zone with a much longer stacking area for the vehicles. A Community Facilities District (CFD) was established in 1998 to finance public facilities and the CFD subsequently issued bonds to finance certain School District (NMUSD) and City improvements. Both the City and School District are representatives of the CFD and maintain separate Improvement Accounts. The City has surplus bond funds available in its account and pending the approval of the MOU, would transfer a portion of the surplus funds to the School Improvement account for the construction (and other related costs) of the loop road. In accordance with the language in the Bonita Canyon bond indenture, the surplus funds are required to be transferred from City Improvement Account to the School District Improvement account even though the City will manage and advance the cost of the project. The City has designed and would administer the construction of the loop road. Per the MOU, the School District will reimburse the City from the School Improvement Account. A 5% administrative fee based on construction costs will be invoiced to the School District to cover the costs associated with inspection, permits, construction administration, surveying, accounting and legal issues. Construction bids were received on May 25, 2004, and staff is recommending award as a separate item on tonight's Council agenda. In addition, the School Board approved the MOU and Reimbursement Agreement at their May 25, 2004 meeting. If approved by the City Council, City staff would use its best efforts to administer the construction so that the loop road is substantially complete before the start of school in September, 2004. Prepared by: William 1 City Engineer Attachment: Memorandum of Understanding Budget Amendment Submitted by: ,,h G. Badum Works Director MEMORANDUM OF UNDERSTANDING AND INDEMNIFICATION AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT MESA UNIFIED SCHOOL DISTRICT THIS MEMORANDUM OF UNDERSTANDING AND INDEMNIFICATION AGREEMENT is made and entered into as of this day of , 2004 by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City "), and the NEWPORT -MESA UNIFIED SCHOOL DISTRICT, a California school district ( "District "), and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statures of the State of California and the Charter of City. B. District is a school district duly organized and validly existing under the laws of the State of California and is currently operating Newport Coast Elementary School (grades K -6), at 6655 Ridge Park Road, Newport Coast, CA 92657, and said elementary school is located within the City limits. C. Newport Coast Elementary School was opened in February 2001 with an enrollment of 312 students. Enrollment for the current school (2003 -2004) year is 570 students and is estimated to increase by 85 -100 students in 2004 -05. D. The larger than anticipated increase in enrollment has led to a severe traffic congestion problem in the mornings and afternoons, as the existing school parking lot cannot accommodate the large number of vehicles dropping off and picking up students. E. City and District are both desirous to reach an agreement on a solution to the problem. F. City has surplus funds available from a CFD bond issue for the construction of Bonita Canyon Sports Park among other improvements, and City has determined that these surplus funds, or a portion thereof, can be used for construction of improvements at Newport Coast Elementary School, to alleviate the traffic congestion problem. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. District and City agree that a portion of the surplus bond issue funds shall be made available for construction of an access road at Newport Coast Elementary School to alleviate the traffic congestion. 2. City will design and administer the construction of a paved access road off Newport Coast Road, as shown on a conceptual plan attached hereto as Exhibit A. The project shall be known as the Newport Coast Elementary School Loop Road ( "Project'). 3. City will provide District with copies of the Project plans and specifications for District's review and input. 4. City will use its best efforts to award a construction contract for Project in a timely (June 2004) manner to allow construction to start after the current (2003 -04) school year has ended and to be substantially completed prior to start of the next school year (September 2004), so that the access road will be available for District's use. 5. City agrees that all construction will be done in accordance with City codes, ordinances, and current industry practices. 6. City agrees to name District as an additional insured on all required construction contract insurance policies. 7. District agrees to allow City and its contractor sufficient access to District's property to construct Project. 8. City agrees to repair any and all damage to District's property as a result of construction operations and to restore District's property to its pre - construction condition following completion of the Project. 9. District agrees that upon completion of Project to City's and District's satisfaction, District shall assume full and permanent maintenance and operation responsibilities for the "Project Improvements ". 10. City shall indemnify, defend and hold District, its officers, agents and employees harmless from any expense, liability, or claim for death, injury, loss, damage or expense to persons or property which may arise or is claimed to have arisen during construction of the Project, as a result of any work or action performed by City or on behalf of City, except where such expense, liability or claim is proximately caused in whole or in part by any act, omission, or negligence of District, its officers, agents or employees or by any act or omission for which District, its officers, agents or employees are liable without fault. 2 11. District shall indemnify, defend and hold City, its officers, agents and employees harmless from any expense, liability, or claim for death, injury, loss, damage or expense to persons or property which may arise or is claimed to have arisen either (i) as a result of any act performed by District, its officers, agents or employees, with respect to the Project; or (ii) following District acceptance of the Project with respect to the maintenance and operation of the Project Improvements, except where such expense, liability or claim is proximately caused in whole or in part by any act, omission, or negligence of City, its officers, agents or employees, or by any act or omission for which City, its officers, agents or employees are liable without fault. 12. This Agreement shall be binding upon and insure to the benefit of the successor and assigns of City and District. This Agreement constitutes the entire Agreement between City and District and supercedes all prior understandings and agreements between the parties with respect to the subjects hereof. This Agreement may only be modified in writing and signed by both parties hereto. IN WITNESS WHEREOF, the parties have caused this Memorandum of Understanding and Indemnification Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: City Attorney for the City of Newport Beach CITY OF NEWPORT BEACH a Municipal Corporation 0 Mayor ATTEST: City Clerk for the City of Newport Beach flusers \pbw\shared \agreements - outside \nmusd - mou.doc District Counsel for Newport Mesa Unified School District NEWPORT MESA UNIFIED SCHOOL DISTRICT a California School District 0 President, Board of Education iL '7.,T el- li- 0 , 10 U 000 z _J %ty co LLJ -W�,Asol� o Pv �L City of Newport Beach NO. BA- 04BA -069 BUDGET AMENDMENT 2003 -04 AMOUNT: $sos,8ss.az EFFECT ON BUDGETARY FUND BALANCE: X Increase Revenue Estimates Increase in Budgetary Fund Balance Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations X from additional estimated revenues from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase revenue estimates and expenditures appropriations for the Newport Coast Elementary School Loop road project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Amount Fund Account Description Debit Credit 010 3605 General Fund Fund Balance $22,624.39 400 3605 Bonita Canyon Fund Fund Balance $508,889.42 REVENUE ESTIMATES (3601) Fund /Division Account Description 250 4849 Contributions - School Contribution $460,006.50 9010 5132 General Fund - City Staff Service Fee $47,882.92 EXPENDITURE APPROPRIATIONS (3603) Description Division Number 5100 Public Works - Engineering Account Number 7020 Salaries - Part-Time $24,010.00 Account Number 7425 Medicare - Fringe $348.15 Account Number 7460 Retirement - Part-time $900.38 Division Number 7251 Contributions Fund Account Number C5100745 Npt Coast Elementary Loop Road $460,006.50 Division Number 7441 Bonita Canyon Development Fund Account Number C5100758 Transfer to NMUSD $508,889.42 Division Number Account Number Signed: _ �/ /ins _� ,�/%�?�u� ✓�'�l� Ofd Financial Approval: Administraive Services Director Date Signed: lj Q Administrative AP /Oval: City Manager ate Signed: City Council Approval: City Clerk Date