HomeMy WebLinkAboutReso 2001-021 - Developer Participation Agreements A.
RESOLUTION NO. 2001- 2/
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING ADOPTING COUNCIL POLICY NO. 1502 —
OWNER/DEVELOPER PARTICIPATION AGREEMENTS.
WHEREAS, the City Council is charged with the responsibility of establishing municipal
policies to guide the various functions of the City and, where necessary, to establish procedures by
which functions are performed; and
WHEREAS, the City Council wishes to provide guidelines for public involvement made
under owner participation or development agreements;
THEREFORE, IT IS RESOLVED that the City Council adopts Council Policy No. 1502
entitled Owner/Developer Participation Agreements, a copy of which is attached and made a part
hereof, to be incorporated in the Council Policy Manual.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a
regular meeting of the City Council on the 6`h day of February, 2001, by the following vote:
AYES: COUNCIL MEMBERS: Cibula, Pohlmeyer, Stegall and McGeorge
NOES: COUNCIL MEMBERS: Nine
ABSENT: COUNCIL MEMBERS: Kight
ABSTAIN: COUNCIL MEMBERS: None
DAVID . cGEO , ' , M or
Attest: Form Approved:
Connie Strolimayer, City jerk W. Leonard Wingate,,CityAttorney
CITY OF RED G, CALIFORNIA
Council Policy
SUBJECT Resolution Policy Effective
OWNER/DEVELOPER PARTICIPATION Number Number Date Page
AGREEMENTS
1502 02/06/01 1
Background
From time to time, it is advantageous for the City to enter into Owner/Developer Participation
Agreements with private developers for the design and construction of various types of public works
infrastructure when the work is an integral part of the developers project. This is normally done when
the City has collected developer contribution fees toward a specific improvement,or when Traffic Impact
Fees or Redevelopment Funds are involved.
These agreements are designed to"privatize"the design, construction and project administration. The
Public Works Department is charged with administering the expenditure of the funds and insuring that
work meets City specifications.
POLICY
Public involvement made under owner participation or development agreements shall occur based on
the following guidelines:
Scope
All of the elements of the project must be identified and agreed upon by all parties involved, including
those who are responsible for each element, and the time frame in which they will be completed. This
phase must include a preliminary budget. Pre-agreement meetings,with follow-up documentation sent
to all parties, is key to this stage of the project.
Agreement
An agreement will be prepared jointly by the Developer and the Public Works Department and approved
by the City Attorney prior to presentation to the City Council for consideration. The Agreement must
be approved by City Council prior to any work on the project other than scope.
Funding
An agreement shall stipulate a maximum dollar contribution by the City which shall not be exceeded
without City Council approval. The report presented to the City Council for consideration must include
all costs associated with the project. Such costs would typically include design, soils engineering and
testing, surveying, utility costs, project administration, inspection, and a project contingency as well as
the actual construction bid. Following approval by the City Council and receipt of all bonding and
insurance requirements, the developer may issue a "notice to proceed" and the Public Works
Department will issue an Encroachment Permit.
Term
The agreement shall have a defined term and will terminate if no action is taken.
Minimum Requirements
The agreement will stipulate the following based on the type of work occurring:
1. Prevailing wage requirements
2. Non discrimination provisions
3. ADA requirements
4. Bonding
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Council Policy
SUBJECT Resolution Policy Effective
OWNER/DEVELOPER PARTICIPATION Number Number Date Page
AGREEMENTS 1502
02/06/01 2
5. Insurance
6. Competitive bidding
7. Plan review before inviting bids
8. City approval of bids
9. Any credits against City fees
10. Inspection of work
11. Approval of change orders
12. Project manager for the City
13. Change in work to be approved by the City
14. Option for City not to proceed with project if costs increase
Design
The design consultant will submit plans for review and approval using the same procedure required for
all private land development projects. An additional review will be made by the Public Works
Department for value engineering and constructability. A cost estimate must be provided with the
design.
Bid
The project must be advertised and sealed bids opened by the developer or consulting engineer with
a procedure similar to that used by the Public Works Department with the exception that a
representative of the Public Works Department will participate as an observer.
Award
Prior to issuing a "notice to proceed," the contract award must be authorized by the City Council if the
City is asked to provide additional funding.
Construction
The developer may administer the contract or he may delegate the administration to a consulting
engineer. The developer or his delegate is in full charge of the project with the exception that the Public
Works Department Construction Division must approve all change orders or bid item overruns. The City
Manager must approve any change orders or overruns exceeding 50%of the contingency. The project
administrator must report to the Public Works Construction Division bi-weekly(2-weeks) on the status
of the project including a project accounting.
Acceptance
Upon completion of the project, the developer shall submit a full accounting of the project as a request
for final payment. This accounting will be presented to the City Council for consideration for
authorization to make final payment and to authorize the developer to file of a "Notice of Completion."
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