Updated
Thursday, August 25, 2005
First published Thursday, August 25, 2005
The
Community Services District will look into ways to enable
the delayed North-South pedestrian bridge project to go
forward, CSD directors said Wednesday.
"We
were the lead agency. We were the ones doing it, so we're
not out of line to consider what needs to be done to move
this on," said Director Mary Brennan.
Director
Dick Taylor spoke of the easement agreement for the bridge
that the district approved in June as possible grounds for
becoming involved. "If our easement means anything
at all… maybe it's sufficient for us to step
in. …"
The
Rancho Murieta Association and the Pension Trust Fund for
the Operating Engineers -- owner of most of the undeveloped
land in Murieta -- are locked in a disagreement over how
much liability insurance the RMA needs to provide the PTF
during construction of the bridge.
The
disagreement has brought the project to a standstill. Originally
it was thought the bridge would be done this year. Now it
won't be done until next year at the earliest.
At
Wednesday's special CSD meeting, the board instructed
staff to look into the cost of liability coverage through
its own insurance provider.
"We
have a definite interest here," said CSD President
John Merchant, referring to the CSD's role as one
of the five voting members of the Parks Committee who authorized
the expenditure of $870,000 of developer funds so far for
the $1.5 million bridge.
He
recalled that the Parks Committee "put up some pretty
stringent parameters" for the expenditure of funds
"until we were sure we could build this thing."
That
sense of assurance came in late April, when, with three
of the four permits required for construction secured and
the fourth expected soon, the committee approved the release
of funds for the fabrication of the superstructure so it
would be available in time for the summer construction schedule
on the Cosumnes River.
At
the time of the April meeting, the Rancho Murieta Association
and the Pension Trust Fund of the Operating Engineers, owner
of the property where the bridge would be built, were in
negotiations over conditions the PTF had submitted for the
easement agreement earlier in the month.
In
late July, PTF representative David R. Howard, director
of real estate for McMorgan & Co., sent the RMA and
others connected to the project a new version of the easement
agreement and a letter
explaining that the PTF wanted the RMA to accept liability
in the construction phase by indemnifying the PTF or by
accepting ownership of the property, in line with a provision
in the Mutual Benefit Agreement.
The
RMA's position is the $5 million insurance coverage
offered by the bridge contractor to all the easement grantors
is sufficient coverage.
On
Aug. 5, the RMA released a statement saying the project
had been postponed until next year because there was no
agreement on the easement issue and there wasn't enough
time to complete work at the river before the winter rains.
Referring
to the April Parks Committee meeting, Merchant said, "We
have cast a vote and expended a lot of money" on the
understanding that it was "clear sailing from this
point to build that bridge and it was news to me when all
this cropped up that we don't have any easements.
… (Since we have) egg on our face as a community and
a Parks Committee for spending that money when we had no
business spending it, then I think it behooves us to make
sure that bridge gets across that river."
If
the bridge can't be built by 2008, the remaining funds
are to be used for alternative projects. The Parks Committee
and the county would authorize the release of the money
for the projects.
The
developer is obligated to provide the funding, but not to
build the bridge.
"If
it is, in fact, a matter of indemnification insurance ….
the question would be how much really is it that they think
they need and how much would it cost to get it," said Merchant.
He
suggested exploring the issue with the RMA at the Parks
Committee meeting scheduled for Wednesday, Aug. 31, at 8:30
a.m. at the RMA Building.
Speaking Thursday, RMA President
Paul Gumbinger said he welcomed the CSD's move.
"If the CSD would like
to step in, it might create a path of discussion with the
PTF. ... I think it would be great if the CSD would indemnify
the PTF. I think
that would at least resolve one of the questions,"
Gumbinger said.
At
last week's RMA board
meeting, Gumbinger said the liability issue "was not
a matter of simply buying an insurance policy." Speaking
Thursday, he said insurance might not be the biggest obstacle,
adding that the PTF also "had some issue with the Parks
Committee (being) in contract with (bridge builder) Viking
Construction."
At
the RMA meeting, the directors blamed the delay in the project
on the PTF's demands. Director Dick Cox said, "It is my
opinion that we need to consider serious litigation against
them or they're going to continue to stomp on us forever
and ever."
At
the CSD meeting, Merchant said he had read Howard's
letter and, "as letters from the PTF go, it was probably
one of the more reasonable, rational letters that I've
ever seen. … These guys -- the PTF -- are impossible
to deal with. What's happening here is no different
than every dealing we've ever had with them that I've
been involved in." Merchant was an RMA director for
six years before being elected to the CSD board three years
ago.
"You're
just going to have to be persistent and work through it,"
he said. "It's an important enough issue --
and there's such a short window of time to make it
happen -- that you've got to cut through that stuff.
Sometimes you gotta deal with the devil."
"(The
RMA needs) to get past the issue of easements and liabilities
… now, before everything goes south and everybody
winds up suing each other's brains out. And once that
happens, that bridge is never going to happen," Merchant
said.
