HomeMy WebLinkAbout _ 4.11(h)--Approve Reimbursement Agreement for the Rancho Industrial Park Sewer LIft Station GI �" Y � F
� � � ° � � � " � � CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: April 18, 2023 FROM: Chuck Aukland,Public
ITEM NO. 4.11(h) Works Director
***APPROVED BY***
ukl�n�l,H'ciblic Wc�aks L'�ireGt ' 4.�'6/2423 t�a�e �, e, ss � �r 4/l l(2023
caulcland@ci.redding.ca.us btippin@cityofredding.org
SUBJECT: 4.11(h)--Approve Reimbursement Agreement for the Rancho Ind�ustrial Park
Sewer Lift Station
Recommendation
Authorize the following actions relative to the Agreement to Provide Reimbursement for the
Oversizing of Wastewater Lift Station for the Rancho Industrial Park (Agreement) with Sherry
Shufelberger, as trustee for the Alan and Sherry Shufelberger Revocable Trust, for the design
and construction of the oversized sewer lift station and sewer collection system for the Rancho
Industrial Park project:
(1) Approve the agreement in the amount not to exceed $368,515;
(2) Authorize the City Manager to approve additional increases based on the construction bid
amounts or change orders required during the course of construction up to a total of
$60,000; and
(3) Find that the action is exempt from review under the California Environmental Quality
Act Guidelines,per Section 15061(b)(3)—Common Sense Exemption.
Fiscal Impact
The design and construction of the oversized sewer lift station and associated sewer mains is
estimated to total $1,202,005, of which $368,515 is in excess of the original project proposed by
the developer. The Wastewater Utility has suffcient funds appropriated in the approved Fiscal
Year 2022-23 budget for this project including any City 1Vlanager amounts specified in the
recommendation.
Alternative Action
The City Council (Council) may choose not to approve the reimbursement agreement with
Sherry Shufelberger, for the design and construction of the sewer lift station and associated
sewer mains. The Rancho Industrial Park development project would be required to construct the
smaller lift station and sewer main system to serve the development only. This would prohibit
the surrounding vacant properties to dev�lop in the future without substantial costs and
installation of multiple private sewer facilities.
Report to Redding City Council Apri112, 2023
Re: 4.11(h)--Approve ReimbursementAgreement for the Rancho Industrial Park Sewer Llft
Station Page 2
Background/Analysis
As part of the Rancho Industrial Park, the developer, Alan and Sherry Shufelberger Revocable
Trust, was required to install a sewer lift station and sewer collection system to serve the 19.5-
acre development. This system would be private, operated, and maintained by a sewer
maintenance district. By oversizing the lift station as proposed, the surrounding 112.5 acres
would also be able to be served by the lift station, therefore, providing orderly development with
public sewer available. In addition, this oversized public lift station would benefit the City of
Redding Water Utility by providing the required sewer service to the upcoming Well 12
rehabilitation/wellhead treatment system project.
The proposed agreement was developed in accordance with Redding Municipal Code Section
14.16.370, which generally provides that the City Council may authorize contribution to the
construction of oversized systems as outlined below:
It is the general policy of the city to construct those public sewers which a�e, in the
opinion of the city council, trunk sewers in all areas within the city, and all a�eas
he�eafter annexed into the city which a�e not yet served by trunk sewe�s, as rapidly as
.funds are budgeted for such purposes by the city council. In appropriate circumstances
as deternzined by the city, whe�e p�ivate developers const�uct a t�unk sewe� at city's
�equirement eithe� large� or deeper than is needed fo� the private develope�'s own
development, the city may cont�ibute to the cost of such ove�sizing or increased depth.
The proposed lift station is part of a larger trunk sewer system that will eventually serve a larger
area within the City.
The agreement has been approved as to form by the City Attorney.
Environmental Review
Staff has determined that the action is exempt from review under the California Environmental
Quality Act (CEQA) Guidelines, per Section 15061(b)(3) — Common Sense Exemption. CEQA
applies only to projects which have the potential for causing a significant effect on the
environment. Approval of the reimbursement agreement will allow the future lift station project
to move to the design phase so technical environmental studies can be completed.
Council Priority/City Manage� Goals
� Government of the 215t Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
� Economic Deve�opment — "Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the eommunity.
Report to Redding City Council Apri112, 2023
Re: 4.11(h)--Approve ReimbursementAgreement for the Rancho Industrial Park Sewer Llft
Station Page 3
Attachments
Agreement
^Notice of Exeinption
AGREEMENT TO PROVIDE
REIMBURSEMENT FOR
TH� OVERSIZING OF WASTEWATER LIFT STATION
FOR THE RANCHO INDUSTRIAL PARK
THIS REIMBURSEMENT AGREEMENT is made and entered into by and between SHERRY
SHUFELBERGER as Trustee of the ALAN AND SHERRY SHUFELBERGER REVOCABLE
TRUST; hereinafter referred to as "Developer" and the CITY OF REDDING, a Municipal
Corporation, hereinafter referred to as"City":
WHEREAS, the City installs and maintains the wastewater collection system within the
incorporated areas of the City; and
WHEREAS,the Developer is canstructing a development project known as the Rancho Industrial
Park; and
WHEREAS, the Developer was conditioned (PM-2018-01476) to design and construct a
wastewater lift station (the"Project"); and
WHEREAS,the Developer has requested that the City reimburse increased construction costs for
a wastewater lift station, designed to meet capacity requirements for the surrounding developable
area inside the incorporated area af the City; and
WHEREAS,Redding Municipal Code Section 14.16.370 generally provides that,the City Council
may authorize contribution to the construction of oversized systems for the circumstances of
serving areas not yet served; and
WHEREAS,the City has estimated that the cost difference to design and construct the oversized
lift station for the proposed project is $368,515.00 (the`Bstimated Project Cost"), defined herein
as the difference between the cost of fu11 build-out set forth in Exhibit A, attached and
incorporated herein, and the cost of the Developer's obligation as condition under PM-2018-
01476) set forth in Exhibit B, attached and incorporated herein.
NOW,THEREFORE,IT IS AGREED by and between the parties hereto as follows: '
SECTION 1. DEVELOPER
The names, addresses, and descriptions of the person or persons herein collectively referred to
as "Developer"are as follows:
Name Address
Alan and Sherry P.O. Box 990861
Shufelberger Revocable Trust Redding, CA 96099
Dated January 30, 2009
5ECTION 2. INSTALLATION OF FACILITIES
A. Developer agrees to construct a sanitary sewer lift station to serve the Rancho
Industrial Park at an increased capacity (hereinafter referred to as the "Lift Station")
in order to accommodate wastewater flow from the developable area surrounding the
development. The location of the Lift Station; 3&90 Nordona Lane (APN 054-200-
006),owned by the City of Redding; is shown on the location map as Exhibit C attached
hereto and made a part hereof.
B. The Work shall be performed strictly in accordance with development plans that have
been prepared by Sharrah Dunlap Sawyer, Inc., civil engineers ("Designer") at the
direction of the Developer based on the City of Redding Construction Standards and
reviewed and approved by the City's Public Worlcs Engineering Division (the "Final
Plans") incarporated herein by reference. The Work shall be subject to inspection by
and approval of the City's Public Works Engirieering Division for conformance with
the Final Plans and sound construction practices. If the Construction/Inspection
Management Division of the City's Public Works Engineering Division, in its
judgment, determines that any Work is not in substantial conformity with the Final
Plans and City of Redding Construction Standards or are not otherwise in substantial
conformity with sound building practices, the City shall have the right to order a
correction to the Work by written notice to the Developer, with said work to be
accomplished at the sole cost and expense of Developer. All changes made to the I'inal
Plans must be approved by the City with prior written consent. �
SECTION 3. DEVELOPERS REOUEST FOR REIMBURSEMENT
A. City shall reimburse Developer for the actual costs of the materials and labor at
prevailing wage rate in an amount not to exceed three hundred sixty-eight thousand
five hundred fifteen dollars ($368,515.00), as represented by the difference between
the totals of Exhibits A and B, incorporated herein by this reference. `
B. The Developer agrees that, promptly upon completion of construction of Project and
acceptance of the same by the City, Developer will, at its own expense, furnish to the
City's Public Works Engineering Division a reasonably detailed statement of the actual
construction costs including paid invoices not to exceed the total amount referenced in
part A of this section. Developer assumes all risk of, and City shall not be obligated to
contribute towards, any expense incurred by Developer to complete the work that is in
excess of the amount set forth herein.
C. In the event that Developer does not submit paid invoices to the City within one (1)
year of written acceptance of completed construction, City shall have no obligation to
rnake payment for Developer's work.
D. If City does not reimburse Developer within ninety (90) days of the reimbursement
request City shall pay Developer interest in the amount of ten percent(10%) annually
on the outstanding balance compounded on a monthly basis.
SECTION 4. MISCELLANEOUS PROVISIONS
�2�
A. Each of the undersigned signatories hereby represents and warrants that they are
authorized to execute this Agreement on behalf of the respective parties to
this Agreement;that they have full right, power and lawful authority to undertake
all obligations as provided in this Agreement; and that the execution,
performance and delivery of this Agreement by said signatories has been fully
authorized by all requisite actions on the part of the respective parties to this
Agreement.
B. This Agreement has the same force and effect as any deed covenant running
with the land and shall benefit and bind all ownets of the property present and
future, and their heirs, successors and assigns.
C. The City may terminate this Reimbursement Agreement with cause upon ten(10)
calendar days'notice to Developer.
D. To the best of Developer's actual knowledge, without independent investigation,
Developer represents and warrants to City that Consultant has all licenses,permits,
qualifications and approvals of any nature whatsoever that are legally required for
Consultant to practice its profession. Developer represents and warrants to City
that Developer shall, at its sole cost and expense, keep in effect or obtain at all
times during the term of this Agreement any licenses, permits and approvals that
are legally required for Developer to practice its profession.
E. Developer shall, during the entire term of this Agreement, be construed to be an
independent contractor and nothing in this Agreement is intended, nor shall it be
construed,to create an employer/employee relationship, association,joint venture
relationship, trust or partnership or to allow City to exercise discretion or control
over the professional manner in which Developer performs under this Agreement.
Any and all taxes imposed on Developer's income, imposed or assessed by reason
of this Agreement or its performance, including but nat limited to sales or use
taxes, shall be paid by Developer. Developer shall be responsible for any taxes or
penalties assessed by reason of any claims that Developer is an employee of City.
Developer shall not be eligible for coverage under City's workers' compensation
insurance plan, benefits under the Public Employee Retirement System or be
eligible for any other City benefit.
F. No provision of this Agreement is intended to, or shall be for the benefit of, or
construed to create rights in, or grant remedies to, any person or entity not a party
hereto.
G. Developer shall maintain accounts and records, including personnel,property and
financial records, reasonably adequate to identify and account for all costs
pertaining to this agreement and such other records as may be deemed necessary
by City to assure proper accounting for all project funds. These records shall be
made available for audit purposes to any authorized representative of City.
Developer shall retain such records for three (3) years after the expiration of this
Agreement, unless prior permission to destroy them is granted by City.
H. Each of the Parties hereto hereby irrevocably waives any and all right to trial by ;
jury in any action, proceeding, claim or counterclaim, whether in contract or tort,
at law or in equity, arising out of or in any way related to this Agreement or the
�3�
transactions contemplated hereby. Each Party further waives any right to
consolidate any action which a jury trial has been waived with any other action in
which a jury trial cannot be or has not been waived.
SECTION 5. INSURANCE
The obligations to the City required of Developer in Section 5 relating to insurance may be satisfied
by Developer's authorized subcontractor if the obligations set forth in Section 5 are met by the
Developer's subcontractor. Only in such event shall Developer be relieved of the obligations set
forth in Section 5.
A. Developer shall maintain the following noted insurance during the duration of the
Contract:
Coverage Required Not Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers' Compensation and Employers' Liability X
Professional Liability(Errors and Omissions) X
(Place an"x"in the appropriate box)
B. Coverage shall be at least as broad as:
1. Insurance Services Office form number CG-0001, Commercial General
Liability Insurance, in an amount not less than$1,000,000 per occurrence and
$2,000,000 general aggregate for bodily injury, personal injury and property
damage;
2. Insurance Services Office form number CA-0001 (Ed. 1/87), Comprehensive
Automobile Liability Insurance, which provides for total limits of not less
than $1,000,000 combined single limits per accident applicable to all owned,
non-owned and hired vehicles;
3. Statutory Workers' Compensation required by the Labor Code of the State of
California and Employers' Liability Insurance in an amount not less than
$1,000,000 per occurrence. Both the Workers' Compensation and
Employers'Liability policies shall contain the insurer's waiver of subrogation
in favor of City, its elected officials, officers, employees, agents and
volunteers;
4. Professional Liability (Errors and Omissions) Insurance, appropriate to
Developer's profession, against loss due to error or omission or malpractice
in an amount not less than $1,000,000.
5. The City does not accept insurance certificates or endorsements with the
wording "but only in the event of a named insured's sole negligence" or any
^..4� ,
other verbiage limiting the insured's insurance responsibility.
C. Any deductibles or self-insured retentions must be declared to and approved by City,
which approval shall not be unreasonably withheld, conditioned or delayed.
D. The General Liability shall contain or be endorsed to contain the following
provisions:
1. City, its elected officials,officers,employees, and agents ai�e to be covered as
additional insured as respects liability arising out of work or operations
performed by or on behalf of Developer; premises owned, leased or used by
Developer; or automobiles owned, leased, hired or borrowed by Developer.
The coverage shall contain no special limitations on the scope of protection
afforded to City, its elected officials, officers, employees, agents and
volunteers.
2. The insurance coverage of Developer shall be primary insurance as respects
City, its elected officials, officers, employees, agents and volunteers. Any
insurance or self-insurance maintained by City, its elected officials, officers,
employees,agents and volunteers,shall be in excess of Developer's insurance
and shall not contribute with it.
3. Coverage shall state that the insurance of Developer shall apply separately to
each insured against whom claim is made or suit is brought, except with
respect to the limits of the insurer's liability.
4. Each insurance policy required by this Contract shall be endorsed to state that
coverage shall not be canceled except after thirty (30) calendar days' prior
written notice has been given to City. In addition, Developer agrees that it
shall not reduce its coverage or limits on any such policy except after thirty
(30) calendar days' prior written notice has been given to the insureds.
E. Insurance is to be placed with insurers with a current A.M. Best's rating of no less
than A-VII.
F. Developer shall cause the Contractor to designate the City of Redding as a Certificate
Holder of the insurance. Developer shall cause the Contractor to furnish City with
certificates of insurance and original endorsements effecting the coverages required
by this clause. Certificates and endorsements shall be furnished to:Risk Management
Department, City of Redding, 777 Cypress Avenue, Redding, CA 96001. The
certificates and endorsements for each insurance policy are to be signed by a person
authorized by the insurer ta bind coverage on its behalf. All endorsements are to be
received and approved by the City's Risk Manager prior to the commencement of the -
Work. City may withhold payments to Developer if adequate certificates of insurance
and endorsements required have not been provided, or not been provided in a timely
manner.
G. The requirements as to the types and limits of insurance coverage to be maintained
���
by Contractor as required by Section 8 of this Contract, and any approval of said
insurance by City, are not intended to and will not in any manner limit or qualify the
liabilities and obligations otherwise assumed by Contractor pursuant to the
Construction Contract, including, without limitation, provisions concei•ning
indemnification.
H. If any policy of insurance required by this Section is a"claims made"policy,pursuant
to Code of Civil Procedure § 342 and Government Code § 945.6, Developer shall
keep said insurance in effect for a period of eighteen(18)months after the completion
of the Work.
I. If any damage, including death, personal injury or property damage, occurs in
connection with the performance of this Contract,Developer shall immediately notify
City's Risk Manager by telephone at(530)225-4068. No later than three(3)calendar
days after the event, Developer shall submit a written report to City's Risk Manager
containing the following information, as applicable: 1) name and address of injured
or deceased person(s); 2) name and address of witnesses; 3) name and address of
Developer's insurance company; and 4) a detailed description of the damage and
whether any City property was involved.
SECTION 6. INDEMNIFICATION AND HOLD HARMLESS
A. Consistent with California Civil Code §2778,Developer shall cause the Construction
Contract to include provisions that require the Contractor, to the fullest extent
permitted by law, indemnify protect, defend and hold harmless, City, its elected
officials, officers, employees, and agents, and each and every one of them, from and
against all actions, damages, costs, liability, claims, losses, penalties and expenses
(including,but not limited to, reasonable attorney's fees of the City Attorney or legal
counsel retained by City,expert fees,litigation costs,and investigation costs)of every
type and description to which any or all of them may be subjected by reason of, or
resulting from, directly or indirectly, the negligence, recklessness, or willful
misconduct of Contractor, its officers, employees or agents in the performance of the
Work, except when liability arises due to the sole negligence, active negligence or
misconduct of the City.
B. The Contractor's obligation to defend, indemnify and hold harmless shall not be
excused because of the Contractor's inability to evaluate liability. The Construction '
Contract shall provide that Contractor shall respond within thirty (30) calendar days
to the tender of any claim for defense and indemnity by the City, unless this time has
been extended in writing by the City. If the Contractor fails to accept or reject a
tender of defense and indemnity in writing delivered by City within thirty (30)
calendar days, in addition to any other remedy authorized by law, the City may
withhold such funds the City reasonably considers necessary for its defense and
indemnity until disposition has been made of the claim or until the Contractor accepts
or rejects the tender of defense in writing delivered to the City, whichever occurs
first. This subdivision shall not be construed to excuse the prompt and continued
performance af the duties required of Developer or Contractor herein. '
N6v
C. The obligation to indemnify, protect, defend, and hold harmless set forth in this
Section applies to all claims and liability regardless of whether any insurance policies
are applicable. The policy limits of said insurance policies do not act as a limitation
upon the amount of indemnification to be provided by Contractor.
D. The City shall have the right to approve or disapprove the legal counsel retained by
Contractor pursuant to this Section to represent City's interests. City shall be
reimbursed for all costs and attorney's fees incurred by City in enforcing the
obligations set forth in this Section.
SECTION'7. PREVAILING WAGE LAW COMPLIANCE
A. Pursuant to Section 1781 of the Labor Code, Developer is advised that the work
contemplated in this contract related to construction is subject to the payment of
prevailing wages and all other requirements of the Prevailing Wage Law. The
prevailing wage bf each job classification may be found by inquiry with the
California Department of Industrial Relations. Developer shall comply with all laws
related to the performance of public work including, but not limited to, the
employment of apprentices pursuant to Section 1777.5 of the Labor Code, work
day/week hours and overtime rates pursuant to Sections 1813 and 1 S 15 of the Labor
Code and the obligation set forth in Sections 1774-1776 of the Labor Code in regards
to payment af prevailing wages and to provide the City of Redding and Department
of Industrial Relations certified payroils when required. A certified copy of all
payroll records relative to this project shall be submitted to the City of Redding along
with the related invoices. Receipt of certified payroll records is a prerequisite to
receiving payment.
B. No Contractor, sub-contractor, or consultant may be listed on a bid proposal for a
public works project unless registered with the Department of Industrial Relations
pursuant to Labor Code Section 1725.5. No Contractor,sub-contractor,or consultant
may be awarded a contract for public work on a public works project unless registered
with the Department of Industrial Relations pursuant to Labor Code Section l 725.5.
All Contractors, sub-contractors, or consultants must furnish electronic certified
payroll records to the Labor Commissioner. This requirement applies to all public
works projects,whether new or ongoing. Developer is further advised that the work
contemplated herein is subject to compliance monitoring and enforcement by the
Department of Industrial Relations.
�7�
IN WITNESS WHE OF, City and Developer have executed this Reimbursemen�
Agreement on�he da�s and year set fQrth below:
CITY OF REDDING,
A Municipal CorporatYon
Dated a ,2022
By: MICHAEL I?ACQUISTO,MAYOR
ATTESTt APPROVED AS Tt�FO .
BA Y E. DeWALT
City Attorney
PA LA MIZE, City Clerk py,
Dated: 7�
Sy: SHE UFEL GER,T ste�
of the Alan and Sherry Shufelberger
Revocable Trust
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��oF AEOo CITY OF REDDING EXHIBIT C
- Z RANCHO INDUSTRIAL PARK
PUBLIC WORKS LIFT STATION
� ��- .o DEPARTMENT
�trfioc�►�'' LOCATION MAP
NOTICE QF EXEMPTIQN
To; ❑ Of�ce of Planning and Research FxOM: City af Redding
1400 Tenth Street,Room 121 Public Works Department
Sacramento, CA 95814 777 Cypress Avenue
Redding;CA 96Q01
� Shasta County Clerk
County of Shasta
P:O. Box 990880, 1643 Market Street
Redding, CA 96099-0880
Praject Title� Citv of Reddin�and Shufelber�er Reimbursement Agreement
Project Lacation—Spec�fic: Gitv of Reddin�
Praject Lacation—City. Reddiil� Project Location—County: Sllasta
Description of Project. The Citv af Reddin� will execczte a Reimbursement Agreement a�reement� with Sherry
Shufelber�er to pav the Citv's share of costs for a lar�;er sewer lift statian As bart of the Rancho Industrial Park the
develaper Alan and Sherrv Shufelber�er Revocable Trust are required to install a sewer lift station and sewer
collectian svstem to serve the 18-acre development. This svstem would be private operated and maintained by
a sewer maintenance district. By aversizin� the 1ift station as praposed the surroundin� 112 5 acres would also
be able to utilize the lift statian.
Name af Public Agency Approving Praject:City of Reddin,�
Name of Persan or Agency Carrying t�ut Project: Josh Vandiver; Wastewater Utili Mana�er
Exempt Status; (eheck one)
O Minlsterial[Section�10$Q(b)(l); 15268]
❑ Declared Ernergealcy [Section 21080(b)(3); 15269(a)]
❑ Emergency Project[Section 210$0(b)(4}; 15269(b)]
❑ Statutory Exemptrons. State code nurnber:
� Common Sense Exemption(This project does not fall w�thin an exernpt class;but it can be seen with certainty that there is
no possibility that the actiuity may have a signaficant effect on the'environment(14 CCR 15061[b][3]).
❑ �ategorical Exemption. State type and sectian nurnber:
❑ No exceptions apply tliat would bartlie use of a categorical exemption(PRD 21084 and 14 CCR 15300,2).
Reasans why project�s exempte CEQA applies onl�projects whicl7 have the potential for causin�a si�nificant effect
oy�the enviroirment. The a�reeinent will allow reimbursement for the Citv's share af desi�n and canstruction cost for tlle
future lift station. The a�reement wrll not result in physical alteratian of the environmerat It can be seen with certainty
that there is no passibilitv tl�at the activit��may have a si�nificant effect on the environment
Lead Agency Contact Personr Arnber Ketley T�lephone: 530.225.4046
If Filed by Applicante
1. Attach certified dt�cument of exemption�ndiiig:
2. Has a notice of exemption been�led 6y the public agency approving the pro�ect? ❑Yes a No
Signature, °�-:�r" �C Date: ,��-' �°-
Title: Environmental Compliance M��i er
�Signed by Lead Agency Date i�eceived for filing at OPR;
❑ Signed by Applicant