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HomeMy WebLinkAboutItem 03 - Heritage Cove ITEM #3 MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGEqk- MEETING DATE: MARCH 5, 2013 SUBJECT: DEVELOPER CONTRACT HERITAGE COVE ADDITION WATERLINE IMPROVEMENTS RECOMMENDATION: City Council consider approving a Developer Cost Participation Contract with Heritage Cove, LLC fart construction of an 8" waterline along Roberts Road, at a cost to the City of $47,760, approve a contingency fund of $5,000, authorize the City Manager to execute the necessary documents, and take any necessary action. FUNDING: The project budget will be appropriated from the unappropriated Utility Fund balance to Account #200-48930-534-8-000033-WA. BACKGROUND: Heritage Cove, LLC is preparing to develop Heritage Cove Addition, a 23 lot residential development along Roberts Road. The existing 6" waterline along Roberts Road was constructed over 40 years ago when this area was in the it of Colleyville ETJ in Tarrant County. This line has been a high maintenance area for our operation crews over the past years. This development provides the City an opportunity to coordinate improvement to our facilities with the localized development's plans and construct a portion of the overall 8" waterline with the City providing the funding fort waterline is is adjacent to the development. The Contract is based upon our standard agreement utilized for funding participation agreements with developers within the City. Staff recommends approval. ITEM #3 STATE OF TEXAS § COUNTY OF TARRANT § COST PARTICIPATION CONTRACT CITY OF GRAPEVINE § WHEREAS, HERITAGE COVE, L.L.C, a Texas Limited Liability Company, hereinafter referred to as "Owner," is the owner of land in the City of Grapevine, Tarrant County, Texas, a Texas home-rule City, hereinafter referred to as "City", which land ("Subject Property') is more specifically described as Heritage Cove Addition, City of Grapevine, Tarrant County, Texas, incorporated herein for all purposes; and WHEREAS, Development of Subject Property provides the opportunity to incorporate the construction of a portion of an 8" waterline (the "Waterline") along Roberts Road adjacent to this Development is replaces a 40 year of 6" water infrastructure pipe; and WHEREAS, the City, pursuant to its policies, acknowledges an obligation to fund the costs of the Waterline adjacent t o t he limits of the Subject Property; and WHEREAS, the City and Owner agree that the Waterline shall be derived from unit prices received by Owner and are upon by the City; and WHEREAS, City agrees to provide the necessary funding for the construction of approximately 750 LF of the Waterline and necessary appurtenances, outside of the limits of the Subject Property with an estimated cost of$47,600; and WHEREAS, Owner agrees to provide the design, and material testing costs for the approximately 750 LF of Waterline, constructed outside of the limits of the Subject Property; and; WHEREAS, the "Owner and City agree that the City's participation in the funding of the Project is estimated to be $47,600- and WHEREAS, the City agrees to provide its share of the funding to "Owner" in monthly installments based upon work completed and approved contract line its prices less a 5% retainage which shall be paid to Owner on completion of the construction and acceptance by the City-, and WHEREAS, the "Owner" and City agree the contract for the construction of the Project shall be exclusively between the "Owner" and the contractor and that the City shall have no contractual relationship with the contractor within the scope of the "Owner" contract fort e construction of this Project, and WHEREAS, the "Owner" agrees that the construction contractor shall be required to provide a performance, payment and maintenance bonds. Said performance and payment bonds shall be issued by an approved surety company holding a permit from the 0:1AGENDA\2013103-05-13\Heritage Cove contract Water 2-21-13.doc ITEM #3 State of Texas to act as surety (and acceptable according to the latest list of companies holding certificates of authority from the Secretary of the Treasury of the United States), shall be issued in the name of the City, and shall be issued in the full amount of the cost to construct the Project; and Said maintenance on shall be issued by a an approved surety company holding a permit from the State of Texas to act as surety (and acceptable according tot latest list of companies holding certificates of authority from the Secretary oft Treasury of the United States), shall be issued in the name of the City of Grapevine, shall be issued in an amount of twenty-five percent (25%) of the total construction cost oft Project, and shall extend fora period of two years from the date of acceptance of the Project by the City; and WHEREAS, the "Owner" agrees that the contractors all provide insurance for the Project as stipulated by the City in amounts meeting the City's minimums for Public Construction Projects; and WHEREAS, the "Owner" agrees that said insurance shall name the City of Grapevine as additional insured-, and WHEREAS, State law provides the opportunity for cities to participate with private development in the construction of public improvements. NOW, THEREFORE, the parties to this Contract, the City and the "Owner', do enter into this Cost Participation Contract, for good and valuable consideration, the receipt and sufficiency of such consideration being hereby acknowledged, and in the mutual promises and mutual benefits that flow to each party, do hereby contract, covenant, warrant, and agree as follows: Section 1. That all matters stated in the preamble above are found to be true and correct and are incorporated into the body of this Cost Participation Contract as if copied verbatim in their entirety. Section 2. That the "Owner" hereby agrees to construct waterline improvements as herein described to provide adequate water system capacity to serve the proposed development of Subject Property. The constructions all comply with City ordinances and State of Texas requirements. Section 3. The "Owner' hereby agrees, at its sole cost, to employ a civil engineer registered in the State of Texas to prepare and seal the construction plans of the Waterline within the limits of the Subject Property prior to construction. Section 4. The "Owner" hereby agrees, at its sole cost, to Contract with said registered civil engineer to provide Construction Phase Engineering Services to the City during the construction of the Waterline. Section 5. That the "Owner" and City agree to construct and to share in the Total Cost of the Waterline, and the City shall make monthly payments tot Owner as 0:\AGENDA\2013\03-05-13\Heritage Cove contract Water 2-21-13.doc ITEM stipulated in this contract. Section . That the Owner and City agree that completion of the public infrastructure cess for Substantial Completion of the Subject Property infrastructure is tied to the completion of the Waterline construction tote Subject Property is in place and sufficient to provide adequate fire protection. Section . That the Owner agrees to dedicate the necessary utility easements for the terlin construction. Section . Indemnity Provisions. The " ner" sh ll waive all claims, full release, indemnify, defend hold harmless the City and all of its officials, officers, agents, consultants and employees in both their public and private capacities, from any and all liability, claims, suits, demands or causes of action, including ll expenses of litigation and 1 or settlement which may arise by injury to property or person occasioned by error, omission, intentional or negligent act of"Owner", its officers, agents, consultants and employees risin out of or in connection with this Contract, or on or about the ro e y, and "Owner" will, at its own cost and expense, defend and protect e City and all of its officials, o c rs, agents, consultants and employees in both their public and private capacities, from any and all such claims and demands. Also, "Owner' agrees to and shall indemnify, defend and hold harmless the City and all of its officials, officers, agents, consultants and employees in both their public and private capacities, from n against any and all claims, losses, damages, causes of cion, suit and liability of v kind, including aII expenses of litigation, court costs and attorneys' fees for injury to or death of ny person or for any damage to any property arising out of or in connection with the construction under this Contract on ornear the u ec property. This indemnity shall apply whether the claims, suits, losses, damages, causes of ctio or liability arise in whole or in part from the intentional acts or negligence of"Owners" or any of their officers, officials, ents, consultants and employees, whether said negligence is contractual, comparative negligence, concurrent negligence, ross negligence or any other form of negligence. The City shall be responsible only for the City's primary negligence. The provisions above in this Section 6 shall apply only to errors, omissions, n cts occurring during the construction of the Project and not afterwards. Provided, however, that nothing contained in this Contract shall waive the City's defenses or immunities under Section 101.001 et se q. of the Texas Civil Practice and Remedies Code or other applicable statutory or common law. Section n e ni y A ins inst Design Defects. Approval of the City Engineer or other City employee, o ici I, consultant, employee, or officer of any plans, designs orspecifications su i y the "Owner" under this Contract shall not constitute or be deemed to be a release of the responsibility n liability of the "Owner", their engineer, cotr ctors, employees, officers, or agents for the accuracy an competency of their design and specifications. uch approval shall not be deemed to be an assumption of such responsibility or liability by the City for any defect in the design and specifications pre r y the consulting engineer, his officers, a e s, servants, or employees, it ein the intent of the parties that approval by the City Engineer or other City employee, official, consultant, or officer si nies the City's approval of only the general design concept of the improvements to be constructed. In o:IAG NDA1 2093\03-05-13\Heritage Cove contract Water 2-21-13.doc ITEM #3 this connection, the "Owners" shall, for a period of one (1) year following the City's acceptance oft Project, indemnify and of harmless the City, its officials, officers, agents, servants and employees, from any loss, damage, liability or expense on account of damage to property and injuries, including death, to any and all persons is may arise out of any defect, deficiency or negligence of the engineer's designs and specifications incorporated into any improvements constructed in accordance therewith, and the "Owners" shall defend at his own expense any suits or other proceedings brought against the City, its officials, officers, agents, servants or employees, or any of them, on account thereof, to pay all expenses and satisfy all judgements which may be incurred by or rendered against them, collectively or individually, personally or in their official capacity, in connection herewith. Section 10. Approval of Plans The "Owner' and City are that approval of plans and specifications by the City shall not be construed as representing or implying that improvements built in accordance therewith shall be free of defects. Any such approvals shall in no event be construed as representing or guaranteeing that any improvement built in accordance therewith will be designed or built in a good and workmanlike manner. Neither the City nor its elected officials, officers, employees, contractors and/or agents shall be responsible or liable in damages or otherwise to anyone submitting plans and specifications for approval by the City for any defects in any plans o r s pecifications submitted, revised, or approved, in the loss or damages to any person arising out of approval or disapproval or failure to approve or disapprove any plans o r s pecifications, for any loss or damage arising from the non-compliance of such plans or specifications with any governmental ordinance or regulation, nor any defects in construction undertaken pursuant to such plans and specifications. Section1l. on completion oft e construction of the Project, the Project and all appurtenances thereto shall become the property of and shall be maintained by the City (subject to the warranties of the contractor performing the work). Section 12. Notwithstanding anything in this Contract, nothing herein waives any right of immunity available to the City under applicable law. With respect to any indemnity provided for herein from "Owner' to City, "Owner" do not assume any liability for damages above and beyond what is recoverable against the City itself based on immunity or damage limits applicable t o t he City. Section 13. This Contract shall not be assignable without the express written consent of it and "Owners." 0:AGENDA\2013\03-05-13\Heritage Cove contract Water 2-21-13.doc ITEM #3 Executed this Day of 2013. OWNER: CITY OF GRAPEVINE, TEXAS HERITAGE COVE, L.L.C, a Texas Limited Liability Company BY: Mark Howe Bruno Rumbelow, City Manager Member APPROVED: City Attorney STATE OF COUNTY OF Before me, a notary public, on this day personally appeared , known to me to be the person whose name is subscribed to the foregoing document and acknowledged to me that he executed the same for the purposes and consideration therein expressed. Given under my hand and seal of office this day of 2013. Notary Public Signature Notary Public Printed or Typed Name My commission expires: 0:1AGENDA\2013103-05-13\Heritage Cove contract Water 2-21-13.doc ITEM #3 STATE OF COUNTY OF Before me, a notary public, on this day personally appeared , known to me to be the person whose name is subscribed to the foregoing document and acknowledged to me that he executed the same for the purposes and consideration therein expressed. Given under my hand and seal of office this day of 12013. Notary Public Signature Notary Public Printed or Typed Name My commission expires.- 0AAGENDAQ01 3\03-05-13tHeritage Cove contract Water 2-21-13.doc