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Cooperative Construction & Reimbursement Agmt for N. Black Cat Trunk SewerCOOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT NORTH BLACK CAT TRUNK SEWER -LINE A THI5 AGREEMENT made this day of , 2007, by and between the CITY OF MERIDIAN, a municipal corporation, hereinafter called "CITY," and Brighton Development Inc., an Idaho corporation; Treehaven, LLC, and Idaho limited liability company; and Primeland Development Company, L.L.P., an Idaho limited liability partnership (BTP), hereinafter called "DEVELOPER": WITNESSETH: WHEREAS, DEVELOPER owns land inside the corporate limits of the City of Meridian and desires to construct a sanitary sewer system to be owned, operated, and maintained by CITY to serve DEVELOPER's property and future City of Meridian property, shown on Exhibit "A" and has requested reimbursement for a portion of the sanitary sewer system; WHEREAS, upon recommendation of the Public Works Department, the City Council of CITY accepted and approved the proposal of DEVELOPER to construct the sanitary sewer system, subject to all conditions hereinafter provided by this Agreement; NOW THEREFORE, in consideration of the foregoing premises, CITY and DEVELOPER hereby agree: 1. Preparation of Plans. CITY has prepared plans and specifications, drawings, instructions, bid proposal and all other contract documents for the construction and installation of sanitary sewer system (hereinafter called "Project"), shown on Exhibit "B," including rights-of--way, grades and elevation, and materials used in the construction and installation of said trunk sanitary sewer lines. DEVELOPER shall not be liable for any damages or delays caused by the CITY's plans and specifications, drawings, instructions, bid proposal and other contract documents prepared by the CITY. 2. Final Plans. CITY and DEVELOPER shall acknowledge in writing the final plans, and said plans shall not thereafter be modified in any material way unless such modifications are approved in writing signed by CITY and DEVELOPER. The final plans and specifications are attached hereto as Exhibit "B" and are made a part of this contract. 3. Constnzction of the Project. A. DEVELOPER shall install and construct the Project in compliance with and subject to all conditions provided herein. COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT -Page 1 of 13 B. CITY, with the cooperation from the DEVELOPER, shall endeavor to obtain and/or provide engineering, permanent and temporary easements adequate for timely completion of the Project at no cost to DEVELOPER and DEVELOPER will provide all surveying and contract administration with the contractors which shall be considered a cost of the project. C. DEVELOPER shall undertake and/or provide all testing, sampling and other normally conducted measures for quality controUquality assurance regazding any and all installed systems and shall be considered a cost of the project. D. CITY shall provide inspection services for the construction of the Project in accordance with CITY standards at its cost. 4. Solicitation of Bids. DEVELOPER shall awazd the construction contract to the lowest qualified bidder, after obtaining approval from the City Council of the successful bidder and bid amount which approval shall not be unreasonably withheld, delayed or conditioned. The bids shall be administered in accordance with state public bidding Laws pursuant to the CITY's purchasing guidelines. 5. Contract Terms. DEVELOPER shall provide CITY with a copy of the executed construction contract(s). All construction contract(s) shall include, at a minimum, the following provisions: A. A requirement that the contractor provide payment and performance bonds naming CITY as an additional beneficiary as required by the Public Works Contractors License Act, Chapter 19, Title 54 of the Idaho Code. B. A requirement that the successful bidder be licensed as a public works contractor. C. A requirement that the construction of the Project shall be in accordance with the approved designs, plans, and specifications and be Substantially Complete within twenty-four (24) weeks from the date DEVELOPER issues to the contractor written notice to proceed. For the purposes of this Agreement, the term "Substantially Complete" shall mean that the Project and all components thereof can be safely used for their intended purpose(s) despite the fact that some item or items remain uncompleted. D. A provision that the time for Substantial Completion will only be extended by (a) acts of God, (b) war, (c) delays caused by CITY, or (d) any request for extension of time approved in writing by CITY. E. A requirement that the contractor shall pay liquidated damages of Five Hundred Dollars and 00/100 ($500.00) per day for each day that Substantial Completion is delayed beyond twenty-four (24) weeks from the date DEVELOPER issues written notice to proceed, or no later than May 1, 2008, or beyond the extended date as allowed herein. F. A requirement that the contractor shall maintain liability insurance insuring against bodily injury or death with limits of not less than One Million Dollars ($1,000,000.00) COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT -Page 2 of 13 per person and per occurrence, and property damage with a limit of One Million Dollars ($1,000,000.00) per occurrence, naming both DEVELOPER and CITY as co-insureds. G. A provision that the contractor shall indemnify CITY and DEVELOPER from any and all claims by third persons arising out of the performance of the contract. H. A provision that the contractor shall comply with all applicable laws, rules, and regulations, and that the contractor shall secure all applicable permits and pay all applicable fees. I. A provision providing at least a one (1) year warranty on the operation and materials of the Project from the contractors, which warranty shall be assignable to CITY. J. DEVELOPER shall have the right to rely upon instructions and the authority of the City Engineer. 6. Conditions Precedent to Execution of Construction Contracts . Prior to execution of any construction contract, the following conditions shall be satisfied: A. DEVELOPER shall obtain written approval from CITY of the form and terms of such construction contract, including but not limited to DEVELOPER'S failure to obtain a construction contract that contains the provisions required by this Agreement, but which approval shall not otherwise be unreasonably withheld or delayed. B. Any easements required for the Project or the construction thereof shall be deeded to CITY and recorded prior to construction of the Project. 7. DEVELOPER and CITY Responsibility for Costs. Because the DEVELOPER will construct sanitary sewer improvements, as shown on Exhibit "B", at the request of the CITY, it is mutually agreed that the cost of the Project will be reimbursed as set forth herein," subject to actual cost verification by City. DEVELOPER shall fund 100% of the cost of the Project, estimated at $1,717,484.31, as detailed in Paragraph 10 below, with reimbursement from the CITY in accordance with the provisions of this Agreement. CITY warrants to DEVELOPER that it has sufficient funds on hand for payment of its share of the costs pursuant to the terms of this Agreement. 8. Change Orders to Construction Contract. DEVELOPER shall obtain the written approval of CITY before approving any change order to the construction contract. In the event of a change order, CITY and DEVELOPER shall execute an amendment to this Agreement to record the amount of the change order to be reimbursed to DEVELOPER, if any. The project management fee to Primeland Development Company, L.L.P. for any change order may be four (4%) percent of any additional project costs if determined appropriate by the CITY. 9. Completion of the Project. A. Upon final completion of the Project, DEVELOPER shall furnish to CITY written certification that the Project has been completed in accordance with the approved plans. COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT -Page 3 of 13 Within fifteen (15) days after delivery of the certificate of completion, CITY shall either accept the same or provide a written itemization of those matters it reasonably finds to be non-conforming with the approved plans, in which case DEVELOPER shall promptly cause the remediation of all non-conforming matters by the contractors. DEVELOPER shall not be liable for any defaults, omissions, or failures of the contractors unless DEVELOPER failed to exercise reasonable care in the performance of its duties. DEVELOPER warrants to the CITY that it will perform its duties pursuant to this agreement with reasonable care. B. Upon completion of the Project, DEVELOPER shall deliver to CITY comprehensive as-built drawings for the Project, signed and stamped by a licensed professional engineer, in both a reproducible, printed format, on both mylar and in electronic files in AutoCAD format. C. Upon completion of the Project, DEVELOPER shall complete all paperwork necessary to assign to CITY the contractor's one (1) year warranty of the work and materials on the Project. D. Upon completion of the Project, DEVELOPER shall represent and warrant that the Project is free and clear of all liens and encumbrances not created by or with the written consent of CITY. 10. Reimbursement to DEVELOPER. A. Estimated Total Reimbursement. Because DEVELOPER will construct the Project, CITY shall reimburse to DEVELOPER 100% of project costs, with the total reimbursement to the DEVELOPER estimated at $1,717,484.31. The estimated total reimbursement for the North Black Cat Trunk Sewer is as follows: 1. Construction Bid (Brown Construction) $1,578,937.31 2. Project Management (Primeland Development) $ 65,000.00 3. Engineering $ 60,000.00 4. Survey $ 9,300.00 5. Testing and inspection verification $ 4,250.00 Total $1,717,487.31 B. Method of Pay lent. To receive payment, DEVELOPER will provide CITY with a written invoice for each Reimbursement Payment. Upon receipt of such invoice, CITY will pay such invoice within forty-five (4S) days after receipt, provided that DEVELOPER is in compliance with all other terms and conditions of this Agreement. The invoice from DEVELOPER shall have attached to it all invoices and billings from contractors, engineers, and expenses of contract management verifying the total actual project costs for which DEVELOPER is seeking a Reimbursement Payment. COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT -Page 4 of 13 C. Timing of Reimbursement Payment. CITY shall reimburse DEVELOPER for eighty (80%) percent of the CITY's reimbursement amount as set forth in this Agreement, subject to written change orders approved by the CITY as herein set forth, upon substantial completion of the Project. The remaining twenty (20%) percent shall be paid by the CITY no later than forty-five (45) days from the date of final completion and acceptance. "Substantial completion" is defined for the purposes of this Agreement to mean that stage in the process of the work when the work is sufficiently completed in accordance with this Agreement so that the CITY can utilize the work for its intended use. If a dispute arises between the CITY and DEVELOPER with regard to any particular issue or matter, the CITY shall not withhold payment of those amounts not in dispute. 11. Compliance with Laws. A. In constructing and installing the Project on and/or within its property, DEVELOPER, at its sole expense, shall comply with any and all laws, orders and regulations of Federal, State and local authorities. It shall be the CITY's responsibility and sole expense to obtain any and all licenses or permits which maybe required for or in the course of the performance of this Agreement. B. Upon connection to the City of Meridian sanitary sewer system, DEVELOPER shall abide by all applicable CITY laws, rules and regulations pertaining to sanitary sewer systems. 12. Indemnification and Insurance. DEVELOPER shall include in the contracts between DEVELOPER and the contractors the indemnification and insurance requirements as set forth in this paragraph. The contractors shall indemnify and save and hold harmless CITY and DEVELOPER from and for any and all losses, claims, actions, judgments for damages, and/or injury to persons or property and losses and expenses caused or incurred by the contractors, their servants, agents, employees, guests, and/or business invitees, and not caused by or arising out of tortious conduct of CITY or its employees or its DEVELOPER. In addition, the contractors shall maintain, and specifically agrees that it will maintain, throughout the pendency of this Agreement, liability insurance in which CITY and DEVELOPER shall be named insured in the minimum amount as specified in the Idaho Tort Claims Act set forth in Title 6, Chapter 9 of the Idaho Code. The limits of such insurance shall not be deemed a limitation of the covenants to indemnify and save and hold harmless CITY and DEVELOPER, and if CITY and DEVELOPER become liable for an amount in excess of the insurance limits herein provided the contractors shall provide CITY and DEVELOPER with a certificate of insurance or other proof of insurance evidencing the contractor's compliance with the requirements of this paragraph by filing such proof of insurance with the City Clerk. In the event the insurance minimums of the Idaho Tort Claims Act are changed, CITY shall notify the contractors of such change, and the contractors shall immediately submit proof of compliance with the changed limit. CITY hereby indemnifies and saves and holds harmless DEVELOPER from and for any and all losses, claims, actions, judgments for damages, and/or injury to persons or property and losses and expenses caused or incurred by the CITY, its servants, agents, employees, and those parties under COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT -Page 5 of 13 the control or direction of the CITY. The duty to indemnify shall also include the duty to defend DEVELOPER at the CITY's cost. 13. No Assi nn~ent. DEVELOPER shall not assign any portion of this Agreement or any privilege here under, either voluntarily or involuntarily, without the prior written consent of the CITY, which consent shall not be unreasonably withheld. 14. Remedies upon Default. A. Default by DEVELOPER. In addition to such other remedies at law or in equity that CITY may have, in the event DEVELOPER fails or neglects to perform its obligations under the terms and provisions of this Agreement in the time and manner required herein, CITY may withhold any reimbursement due to DEVELOPER hereunder until such default is corrected to the satisfaction of CITY. Any withholding of reimbursement shall only be for the amount in dispute and the CITY shall have no right to withhold funds that are not in dispute between the parties. B. _Default b~. In the event CITY fails or neglects to perform its obligations under the terms and provisions of this Agreement in the time and manner required herein, DEVELOPER shall be entitled to all remedies available at law or in equity. C. Notice of Default. If either the DEVELOPER or the CITY claims the other is in default of a provision of this Agreement, they shall give a ten (10) day notice of default to the other parry and the other party shall thereafter have ten (10) days to cure the default. 15. Attorney Fees. Should either party find it necessary to employ an attorney for representation in any action seeking enforcement of any provision of this Agreement, or to recover damages for breach of this Agreement, or to resolve any disagreement as to the interpretation of this Agreement, the unsuccessful party in any final judgment or award entered pursuant to such action shall reimburse the prevailing party for all reasonable costs, charges and expenses, including attorneys' fees expended or incurred by the prevailing party in connection therewith and in connection with any appeal, and the same may be included in such judgment or award. This provision shall be deemed to be a separate contract between the parties and shall survive any default, termination or forfeiture of this Agreement. 16. Notices. Any notice desired by the parties and/or required by this Agreement shall be sent via United States Mail, registered or certified mail, postage prepaid, return receipt requested, and shall be addressed as follows: CITY: Meridian City Engineer City of Meridian 200 E. Carlton, Suite #101 Meridian, Idaho 83642 with copy to: COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT -Page 6 of 13 City Clerk City of Meridian 33 E. Idaho Ave. Meridian, Idaho 83642 All parties constituting DEVELOPER: And: And: c/o Primeland Development Company, L.L.P. Attn: Frank Varriale, President Varriale Construction, Inc., Managing Partner 3120 West Belltower, Suite 100 Meridian, Idaho 83642 c/o Derick O'Neill, Managing Member Treehaven, LLC 2242 E. Riverwalk Drive, Suite 200 Boise, Idaho 83706 c/o David Turnbull Brighton Development, Inc. 12601 West Explorer Drive, Suite 200 Boise, Idaho 83713 Such notice shall be deemed delivered if and when delivery is accepted or three (3) days after deposit in the United States Mail. Either party shall have the right to change its address by delivering to the other party a written notification thereof in accordance with the requirements of this section. 17. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Idaho and the ordinances of the City of Meridian. 18. Exhibits. All exhibits to this Agreement are incorporated by reference and made a part of this Agreement as if the exhibits were set forth in their entirety in this Agreement. 19. Entire Agreement. This Agreement and the exhibits hereto constitute the full and entire understanding and agreement between the parties with regard to the transaction contemplated herein, and no parry shall be liable or bound to any other in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein. 20. Definition of CITY's Property. The term "CITY's Property" in the Agreement shall mean the parcels shown on Exhibit "A" attached hereto. COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT -Page 7 of 13 21. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, successors and assigns, and shall survive any transfer by DEVELOPER of DEVELOPER'S Property. 22. Reports and Information. At such times and in such forms as the CITY may require, DEVELOPER shall furnish to CITY such statements, records, reports, data and information as the CITY may request pertaining to matters covered by this Agreement. Such reports shall be at the sole cost of the CITY and not the DEVELOPER. 23. Audits and Inspections. At any time during business hours and as often as the CITY may deem necessary, there shall be made available to the CITY for examination all of DEVELOPER's records with respect to all matters covered by this Agreement. DEVELOPER shall permit the CITY to audit, examine, and copy such records, and to make audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and other data relating to all matters covered by this Agreement. All such audits and examinations shall be at the sole cost of the CITY and not the DEVELOPER. 24. Construction and Severability. If any part of this Agreement is held to be invalid or unenforceable, such holding will not affect the validity or enforceability of any other part of this Agreement so long as the remainder of the Agreement is reasonably capable of completion. 25. Approval Required. This Agreement shall not become effective or binding until approved by CITY. IN WITNESS WHEREOF, the parties shall cause this Agreement to be executed by their duly authorized officers the day and year first above written. DEVELOPER: BRIGHTON DEVELOPMENT, INC. By: David Turnbull, President Date TREEHAVEN, LLC By: Derick O'Neill, Managing Member Dated: COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT -Page 8 of 13 PRIMELAND DEVELOPMENT COMPANY, L.L.P. By: Varriale Construction, Inc., Managing Partner By: Frank S. Varriale, President Date CITY: BY: TAMMY de WEERD, MAYOR Date Attest: WILLIAM G. BERG, JR., CITY CLERK COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT -Page 9 of 13 STATE OF IDAHO ) ss County of Ada ) On this day of 2007, before me the undersigned, a Notary Public in and for said State, personally appeared DAVID TURNBULL, known or identified to me to be the President of the corporation Brighton Development, Inc., that executed the instrument or the person who executed the instrument on behalf of said corporation, and acknowledged to me that such corporation executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Notary Public For Idaho Residing at: Commission Expires:_ STATE OF IDAHO ) ss County of Ada ) On this day of 2007, before me the undersigned, a Notary Public in and for said State, personally appeared DERICK O'NEILL, known or identified to me to be the Managing Member of the limited liability company that executed the instrument or the person who executed the instrument on behalf of said limited liability company, and acknowledged to me that such limited liability company executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Notary Public For Idaho Residing at: Commission Expires: COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT -Page 10 of 13 STATE OF IDAHO ) ss County of Ada ) On this day of 2007, before me the undersigned, a Notary Public in and for said State, personally appeared FRANK VARRTAT.E, known or identified to me to be the President of Varriale Construction, Inc., the Managing Member of the limited liability company that executed the instrument or the person who executed the instrument on behalf of said limited liability company, and acknowledged to me that such limited liability company executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Notary Public For Idaho Residing at: Commission Expires:_ STATE OF IDAHO ) ss County of Ada ) On this day of , 2007, before me the undersigned, a Notary Public in and for said State, personally appeared TAMMY DE WEERD and WILLIAM G. BERG, JR, known to me to be the Mayor and City Clerk of the City of Meridian, Idaho, who executed the within instrument and acknowledged to me that they executed the same on behalf of the City of Meridian IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Notary Public For Idaho Residing at: Commission Expires:_ COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT -Page 11 of 13 j _. _ ` i ~~-. j ~. .- --- EXHIBIT A -_ __ _ _ ,.- .. _ _ _ R~ ~ ~~: _ ! I R-2 •. i _ I ~ ~-:' --_ I _- -_.- ._._ ....'~._ __ _ _ _ R-8 TREEHAVEN, LLC RUT ~ ~~ . ~~ _- i ~,-- . ~~ ~ .__ ._ R-8 __.. _-. _ .__.._. ~ I ~ ~' _._, _ _ ~ BRIGHTON DEVELOPMENT INC. i ~ i PRIMELAND DEVELOPMENT CO. LLP ~ ~ R-4 ~~ :. R-2 i ~~ L- --- ~~ J i~ ~ =J ,~~~ t ~- ii ~ il- r F F