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HomeMy WebLinkAboutItem 24 - Waterline Connections MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL n FROM: BRUNO RUMBELOW, CITY MANAGER ,. MEETING DATE: JULY 18, 2017 SUBJECT: DEVELOPER CONTRACT KELLEY ADDITION WATERLINE IMPROVEMENTS AND ADOPT APPROPRIATION ORDINANCE RECOMMENDATION: City Council consider approving a Developer Cost Participation Contract with VPG INVESTMENTS, LTD for the construction of additional 6" and 8" waterline connections beyond the limits of the Kelley Addition, in the amount of $25,584.71 , authorize the City Manager to execute the necessary documents, and take any necessary action. FUNDING: Funds will be available in the un-appropriated Utility Fund Balance upon approval of the attached appropriation ordinance. BACKGROUND: This development provided the City the opportunity to eliminate four dead end water lines along Wildwood Drive and Cory Street. Including this eight lot development (approved in 2016), 42 residential lots no longer are served by dead end water mains. Elimination of dead end lines reduces monthly flushing requirements and improves water quality. The developer requested that the City provide reimbursement for the waterline segments outside of the development. This request is consistent with reimbursement practices with past developments. The City's cost per linear foot is significantly less than if the City had let the project separately. City staff has reviewed the unit costs provided by the developer's contractor and find the construction prices are reasonable. The contract is based upon our standard document utilized for cost participation with developers within the City. Staff recommends approval. STATE OF TEXAS § COUNTY OF TARRANT § COST PARTICIPATION CONTRACT CITY OF GRAPEVINE § WHEREAS, VPG INVESTMENTS, LTD, a limited partnership, 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 Kelley Addition, City of Grapevine, Tarrant County, Texas, incorporated herein for all purposes; and WHEREAS, Development of Subject Property provides the opportunity to incorporate the tie-in construction of multiple 6" and 8" water mains as part of the total water project (the "Waterline") in the Wildwood Lane area, connecting 4 dead end water lines adjacent to this Development; and WHEREAS, the "City", pursuant to its policies, acknowledges an obligation to fund the costs of the Waterline adjacent to the 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 agreed upon by the "City"; and WHEREAS, "City" agrees to provide the necessary funding for the construction of approximately 432 LF of Waterline and necessary appurtenances, outside of the limits of the Subject Property with an estimated cost of $25,584.71; and WHEREAS, Owner agrees to provide the design, and material testing costs for the approximately 432 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 $25,584.71; and WHEREAS, the "City" agrees to provide its share of the funding to "Owner" based upon work completed and approved contract line item prices which shall be paid to Owner upon 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 for the 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 State of Texas to act as surety (and acceptable according to the latest list of companies O:\Contract&Interlocal\Developer Contracts\Kelley Addition Development Water 6-15-17 doc a 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 bond shall be issued by a an approved surety company holding a permit from the 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 of Grapevine, shall be issued in an amount of twenty-five percent (25%) of the total construction cost of the Project, and shall extend for a period of two years from the date of acceptance of the Project by the City; and WHEREAS, the "Owner" agrees that the contractor shall 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 construction shall 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 payments to the Owner as stipulated in this contract. O:\Contract& Interlocal\Developer Contracts\Kelley Addition Development Water 6-15-17.doc Section 6. That the Owner and "City" agree that completion of the public infrastructure necessary for Substantial Completion of the Subject Property infrastructure is tied to the completion of the Waterline construction to the Subject Property is in place and sufficient to provide adequate fire protection. Section 7. That the Owner agrees to dedicate the necessary utility easements for the Waterline construction. Section 8. Indemnity Provisions. The "Owner" shall waive all claims, fully release, 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 any and all liability, claims, suits, demands or causes of action, including all expenses of litigation and / 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 arising out of or in connection with this Contract, or on or about the property, and "Owner" will, at its own cost and expense, defend and protect the City and all of its officials, officers, 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 and against any and all claims, losses, damages, causes of action, suit and liability of every kind, including all expenses of litigation, court costs and attorneys' fees for injury to or death of any person or for any damage to any property arising out of or in connection with the construction under this Contract on or near the Subject property. This indemnity shall apply whether the claims, suits, losses, damages, causes of action or liability arise in whole or in part from the intentional acts or negligence of "Owners" or any of their officers, officials, agents, consultants and employees, whether said negligence is contractual, comparative negligence, concurrent negligence, gross 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, and acts 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 seq. of the Texas Civil Practice and Remedies Code or other applicable statutory or common law. Section 9. Indemnity Against Design Defects. Approval of the City Engineer or other City employee, official, consultant, employee, or officer of any plans, designs or specifications submitted by the "Owner" under this Contract shall not constitute or be deemed to be a release of the responsibility and liability of the "Owner", their engineer, contractors, employees, officers, or agents for the accuracy and competency of their design and specifications. Such 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 prepared by the consulting engineer, his officers, agents, servants, or employees, it being the intent of the parties that approval by the City Engineer or other City employee, official, consultant, or officer signifies the City's approval of only the general design concept of the improvements to be constructed. In this connection, the "Owners" shall, for a period of one (1) year following the City's acceptance of the Project, indemnify and O:\Contract&Interlocal\Developer Contracts\Kelley Addition Development Water 6-15-17.doc I Executed this Day of , 2017. OWNER: CITY OF GRAPEVINE, TEXAS VPG INVESTMENTS, LTD Limited Partnership By: Patrick Gray Bruno Rumbelow, City Manager President 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 2017. Notary Public Signature Notary Public Printed or Typed Name My commission expires: O:\Contract&Interlocal\Developer Contracts\Kelley Addition Development Water 6-15-17.doc d hold 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 which 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" agree 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 or specifications 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 or specifications, 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. Section 11. Upon completion of the 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 to the City. Section 13. This Contract shall not be assignable without the express written consent of City and "Owners." O:\Contract&Interlocal\Developer Contracts\Kelley Addition Development Water 6-15-17.doc 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 , 2017. Notary Public Signature Notary Public Printed or Typed Name My commission expires: I O:\Contract& Interlocal\Developer Contracts\Kelley Addition Development Water 6-15-17.doc ORDINANCE NO. 2017-043 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS; APPROPRIATING $25,584.71 FROM THE UNAPPROPRIATED UTILITY FUND BALANCE FOR THE CONSTRUCTION OF ADDITIONAL 6" AND 8" WATERLINE CONNECTIONS BEYOND THE LIMITS OF THE KELLEY ADDITION; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City supports the developer cost participation contract with VPG Investments, LTD for the construction of additional 6" and 8" waterline connections beyond the limits of the Kelley Addition; and WHEREAS, funding of $25,584.71 is available in the unappropriated Utility Fund; and WHEREAS, all constitutional and statutory prerequisites for the approval of this ordinance have been met, including but not limited to the Open Meetings Act; and WHEREAS, the City Council deems the adoption of this ordinance is in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated herein above are true and correct and are incorporated herein by reference, as if copied in their entirety. Section 2. That the City Council hereby approves the use of funds from the Utility Fund. Section 3. That the City Council hereby authorizes the appropriation of $25,584.71 from the available Utility Fund Balance. Section 4. The fact that the present ordinances and regulations of the City of Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace and general welfare of the public creates an emergency which requires that this ordinance become effective from and after the date of its passage, and it is accordingly so ordained. Section 5. That this ordinance shall take effect immediately upon passage by the City Council of the City of Grapevine, Texas. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 18th day of July, 2017. I APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: John F. Boyle, Jr. City Attorney Ordinance No. 2017-043 2