HomeMy WebLinkAbout _ 4.11(e)--Amendment to Trinity Street Sewer Reimbursement Agreement GI �" Y � F
� � � ° � � � " � � CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: May 16, 2023 FROM: Chuck Aukland,Public
ITEM NO. 4.11(e) Works Director
***APPROVED BY***
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ukl�n�l,H'ciblic Wc�aks L'��reGt ' S;'3/2423 ry ip}�in,�C"i ana � 41�/2423
caulcland@ci.redding.ca.us btippin@cityofredding.org
SUBJECT: 4.11(e)--Amendment to Trinity Street Sewer Reimbursement Agreement
Recommendation
Authorize the following actions relative to Reimbursement Agreement (C-9727) (Agreement)
with Sierra Pacific Land and Timber Company for the design and construction of the
replacement and upsizing of the sewer line along Trinity Street from Court Street to Continental
Street for the Salt Creek Heights Subdivision project:
(1) Approve the First Amendment to the Agreement for an increase of$1,260,000 for a new
total of$3,200,000;
(2) A�uthorize $100,000 for City Construction Management staff time for the project; and
(3) Authorize the City Manager to approve additional increases to the agreement for
construction change orders or construction management and inspection up to a total of
$100,000.
Fiscal Impact
The new estimated project budget is $3,400,000. The Wastewater Utility has sufficient funds
appropriated in the approved Fiscal Year 2022-23 budget for this project.
AZteNnative Action
The City Council (Council) may choose not to approve the amendment to the reimbursement
agreement with Sierra Pacific Land and Timber Company, for design and construction of the
sewer line. The Salt Creek I�eights Subdivision development project would be limited as to the
number of lots it could develop. The City of Redding (City) would design, bid, and construct the
sewer line at a later date as scheduled in the Wastewater Master Plan and the additional lots may
be developed at that time.
Report to Redding City Council May 9,2023
Re: 4.11(e)--Amena'ment to Trinity StreetSewer ReimbursementAgreement Page 2
Background/Analysis
As part of the Salt Creek Heights Subdivision Project Phase 2, the developer, Sierra Pacific Land
and Timber Company, was conditioned (AMND-2017-00160, Tentative Subdivision Map
Application 5-15-07, and Planned Development Plan Application PD-11-07) to upsize the
Trinity Street sewer main downstream o�Manholes J6-41, J6-28, and J6-32 (Condition 64). By
upsizing the sewer main, effectively increasing the capacity, the development can build an
additiona142 units beyond the �rst phase as entitled. The replacement of the subject sewer main
is a project identified in the City's Wastewater Master Plan and, therefore, eligible for
reimbursement in accordance with the conditions of development.
On February 7, 2023, Council approved the original agreement. The project was subsequently
advertised for construction bids. Two contractors submitted qualified bids. The low bid is
approxiinately $1,200,000 higher than the engineers estiinate that was provided by the
developer's consultant engineer, Sharrah, Dunlap, Sawyer. Consequently, the agreement requires
an amendment to reflect the total overall project budget subject to reimbursement. It is
anticipated that the developer wi11 award the construction contract to the low bidder, Stimpel-
Wiebelhaus Associates, of Redding, CA.
The amendment has been approved as to form by the City Attorney.
Environmental Review
On February 7, 2023, the Council determined the activity was categorically exempt from
environmental review under the CEQA G�uidelines, per Sections 15301 (Existing Facilities),
15302 (Replacement and Reconstruction), and 15303 (New Construction or Conversion of
Existing Struct�ures). No further action is needed.
Council Priority/City Manager Goals
� Government of the 21st 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 Development — "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 community.
Attachments
First Amendment (C-972'7)
020723-Staff Report Approved-TrinitySewer Reimb
C-9727 - Agreement to Provide Reimbursement
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GI �" Y � F
� � � ° � � � " � � CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: February 7, 2023 FROM: Chuck Aukland,Public
ITEM NO. 4.11(d} Works Director
***APPROVED BY***
�
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ukl�n�l,H'ciblic Wc�aks L'��reGt ' 1/?7/2423 ry ip}�in,�C"i ana � L,'30/2423
caulcland@ci.redding.ca.us btippin@cityofredding.org
SUBJECT: 4.11(d)--Trinity Street Sewer Reimbursement Agreement
Recommendation
Authorize the following actions relative to the Reimbursement Agreement (Agreement) with
Sierra Pacific Land and Timber Company for the design and construction of the replacement and
upsizing of the sewer line along Trinity Street from Court Street to Continental Street for the Salt
Creek Heights Subdivision project:
(1) Approve the Agreement in the amount of$1,940,000;
(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
$300,000; and
(3) Find the action categorically exempt from review under the California Environmental
Quality Act Guidelines, per Sections 15301 (Existing Facilities), 15302 (Replacement
and Reconstruction), and 15303 (New Construction or Conversion of Existing
Structures).
Fiscal Impact
The design and construction of the sewer main is estimated to total $1,940,000. The Wastewater
Utility has sufficient funds appropriated in the approved Fiscal Year 2022-23 budget for this
project including any City Manager amounts specified in the recommendation.
Alternative Action
The City Council (Council) may choose not to approve the reimbursement agreement with Sierra
Pacific Land and Timber Company, for design and construction of the sewer line. The Salt Creek
Heights Subdivision development project would be limited as to the number of lots it could
develop. The City of Redding (City) would design, bid, and construct the sewer line at a later
date as seheduled in the Wastewater Master Plan and the additional lots may be developed at that
time.
Report to Redding City Council February 1,2023
Re: 4.11(d)--Trinity Street Sewer ReimbursementAgreement Page 2
Background/Analysis
As part of the Salt Creek Heights Subdivision Project Phase 2, the developer, Sierra Pacific Land
and Timber Company, was conditioned (AMND-2017-00160, Tentative Subdivision Map
Application 5-15-07, and Planned Development Plan Application PD-11-07) to upsize the
Trinity Street sewer main downstream of Manholes J6-41, J6-28, and J6-32 (Condition 64). By
upsizing the sewer main, effectively increasing the capacity, the development can build an
additional 42 units beyond the first phase as entitled. The replacement of the subject sewer main
is a project identified in the City's Wastewater Master Plan and therefore eligible for
reimbursement in accordance with the conditions of development.
The proposed agreement was developed in accordance with Council Policy 1502, Developer
Participation Agreements. The policy calls for the developer to design and construct the facility
in accordance with Public Contract Code with the City approving/inspecting the design and
construction of the sewer line to ensure conformance to City of Redding Construction Standards
with reimbursement to the developer.
The agreement has been approved as to form by the City Attorney.
Environmental Review
Staff has determined that the project qualifies as categorically exempt from environmental
review under the California Environmental Quality Act (CEQA) Guidelines, per Sections 15301
(Existing Facilities), 15302 (Replacement and Reconstruction), and 15303 (New Construction or
Conversion of Existing Structures). Class 1 exemptions include the minor alteration of existing
public structures and facilities. Class 2 exemptions consists of replacement or reconstruction
where the new struct�ure will be located on the same site and will have substantially the same
purpose and capacity. C1ass 3 exemptions consist of construction and location of new small
facilities and equipment, or conversion of existing structures. The existing wastewater system
will be renovated to meet customer needs and current public safety standards. The project will be
located on the same site, will have substantially the same purpose and capacity, and will result in
a negligible expansion of use. The project has been reviewed for sensitive resources such as
threatened or endangered species or their habitats, sensitive vegetation communities, triballands,
or tribal cultural resources. The project has no potential to have a significant effect on the
environment.
Council Priority/City Manage� Goals
� Government of the 21st 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 Development — "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 community.
Report to Redding City Council February 1,2023
Re: 4.11(d)--Trinity Street Sewer ReimbursementAgreement Page 3
Attachments
^NOE Trinity Street Sewer
^Trinity Street Offsite Sewer- Exhibit A
Payment Performance Maintenance Bonds_Exhibit B
Trinity Street Reimbursement_signed
Council Policy No. 1502
Redding Municipal Code Chapter 16.20.090
N(�TICE CiF EXEMPTION
To: ❑ Office of Planning and Research FROM: City of Redding
1400 Tenth Street, Room 12 i Public Warks I)epartment
Sacramento? CA 95814 777 Cypress Avenue
Redding; CA 96001
❑x Shasta Caunty C1erk
County of Sliasta
P.O.Box 99088Q, 1643 Market Street
Redding,CA 96099-0880
Project Title: Trinitv Street Sewer Proieet J.O.#23Q8-10
Fraject Location—Specific: Trinitv Street and Court Street
Project Lacatian—City:Reddin� Pro;�ect Locatian—County: Shasta
D�scription af Project. In coordination with the Ciiy af Reddin�- Sierra Pacific Industries will construct a wastewater
irnprov�ment nroiect. A fundin� a�reement wi11 be used to reimburse tl�e develaper far the City's share of costs The
proiect entails the installatian removal replacement relacation and rehabilitation t�f sewer main sewer�pe manhales
water main water valves and tie-ins- sidewalk pavernent landscape and fire liydrants The project will use jack and
bore linin� and ouen trench rnethods Tl�e o�en trench and bore pits will be covered at t6e end af each workdav The
public will be notified t�rior to canstruction
Nam�of"Publfc Agency Approving Project: Citv of Reddin�
Nanne o�'Person or Agency Carrying t3ut Project: Rvan Bailev,Assistant Public Woi•ks Director
Exernpt�tatus: (check one)
❑ Ministerial [S�ction 21080(b)(1}; 15268]
❑ I?eclared Emergency [Section Z10$0(b)(3); 15269(a)]
❑ Emergency Pra�ect[Sectian 2108Q(b)(4); 15269(b)]
❑ Statutory Exeinptions. State cade number:
❑ Common Sense Exemption (This project does not fall within an exempt class,but it can be seen with cerkainty that there is
no possibiiity that the activity may have a signlficant effect on the environment(14 CCR 15d61[b][3]).
� Categorical Exemption. State type and section numbea�. Section 15341. �xistin�Facilities 15302.Replacernent
or Reconstruction, and 15303.New Construction or Conversion of Existin�Structures
� No exceptions apply that would bar the use of a categorical exemption(PRD 21084 and 14 CCR 15300 2}.
Reasons why pr�ject is exempt; C1ass 1 exemptions includ� the rninor alteration of existin� public structures and
facilities. Class 2 exemptioils consists of replacement or reconstruction where the new structure will be located on the
same site and will have substantiallv tlie same purpose and capacity Class 3 exercaptions consist of construction and
location of new small facilities and equipment or conversion af existin� structures The existin�wastewater svstem will
be renovated to better meet customer needs and to meet current publ�c safety standards The project will be located on the
same site w111 have the same purpose and capacitv and will result in a ne�li ible axpansion of use The project has been
reviewed for sensitive resources such as threatened or endan ered species or their habitats sensitive ve�etation
cammunities, tribal lands or tribal cultural resources The �roiect has no potential to have a sr�nificant effect on the
enviranment.
Lead Agency Contact Person:Arnber Kelley Telephone; 53Q.225.4046
If Fi1ed by Applicant:
1. Attach certified doeument of exemptian finding.
2, Has a notice of exemption been filed by the public agency approving the project? o Yes ❑No
Signature: � �� f� Date• f�� %��
Title; Envirantnental Com lp iance M er
�Signed by Lead Ageney Date received far filing at C>PR
❑ Signed by Applicant
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32Q Hartnell Avenue,Redding,CA 960Q2
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DATE: JANUARY, 2023 SCALE: 1"=300' SHEET 1 OF 1
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, th� �it� G�u�cil of the City of �eddi�g, a �snicip�l Cc�rporatiar�, in th� �tat� a� GaEifc�rni�,
�s �vrrr�er, has �n , �or�diti�araally�warded t�a �s �rincipal, � C�ar��ra�t to
da �rad perforrn the follov�ring vvork t�-vvst:
�s vvill rnc�re fully �ppe�r in said �ontract, the terrns a�d cc�nditi�r�s �f�aid Cc�r�tract being €ully i�r�arpc�r�ted her�ira by
�his refere�ce; �nd
, under the terrns c�f the �ontract and pursa��nfi t� �hapter 5 of Titl� 3 of F'�rt 6 �f [7i�risiar� 4 csf the
Galife�rr�ia Givi! Cc�de (�ort�r��ncing v�it�t �ivil �od� �ect@c�r� 9550), �rir�cip�l i� reqtaired to furnish � gaod �rtd suffici�nt
p�yrri�nt b�nd tc�se��ar� payrner�t caf the �lai�a��e�which refi�rence i� rr��de i� Gieril Cod� �ecti�n 9554;
, F , vue, th� �rir�cipal and
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h�r�ir��ft�r c�EEed �ur�ty, ar� h�ld �nd fiirmly bound e�r�tc�th� C�wn�r, and ur�tc�aEE p�r�ons ar�nt�ties ent°sfil�d fio �ss�rt�
�lair�r ag�inst � payrner�t bc��d �nder a�y of th� aforesaid Givil Gode provi�ions in the per�a6 �urn c�f
Dol6�rs (� ) lawful rr�orrey of the lJr�ited �t�t�s af Rrneric�,
far th� payrnerafi vvherec�f, weell �r�d truly ta b� rr�ade, a�ve bind ourselve�, our I��irs, e�c�c�ator�, ada�rir�istrators,
s��c�ss�rs �nd a�sig�s,jraintly ar�d �everaEEy, �irrnly by thes� pr�ser�t�.
T' � I'TI � t �1 T"I I 9 th�t ifi �a�d �rinc�p�l, h�s ar its heirs, �x�c�atc�rs,
administr�tc�rs, successors ar �ssign�, ar ��bcontractors, shall fa�l to pay �ar �ny rn�terial� ar equiprnent fur�ish�d or
���d ir� perFc�rrr�an�e c�f the Contract, or ficar �r�y wc�rk or labar th�r�c�n �af �ny kind, c�r fc�r a�e�ur��s d�a� �nder the
l�r��rr'pfayment Ir�s�ar�r�ce�Oct v�ith re�pec�tca s�a�h vvc�rk c�r I�bar, c�r fc�r��y�rnca�ant� r�quired tc� be deducted, vvithheld,
ar�d p�id eav�r t�the Franchis�T�x �a�rd c�r th� Err�ployrs��nt I��v�lcrprner�t ��partrrrent firc�m th� �+rages af ernplay��s
cafi the Contra�tc�r �nd all �ubeor�tr�c�wr� vvifih re�p�ct t�a �u�h vvork or f�abar, th�n the ��ar��y �h�fl p�y th� �am� in ar�
�rnount r��at exc��dir�g th� �urn specifi�d �bove. Efi �uit i� brc�ugt�t �pon thi� bandp �e�r�ty shalf p�y, ir� additi�r� to the
�b�v� �um, �II cost�, exp�n��s and f��s, ir�cl�ding attcarr��y's f�es, r�a�c�n�bly incurr�d by �ray p�r�y ir� s�ac��ssfully
enfc�rcing th� �bEigaticar� �ecured hereby, �II tc� be ta�ced a� costs �nd incl�ded in a�y j�adgment rendered, �hc��6d #he
ccsr�difiic�n �f this bond be fully perForr��d, then �his crblig�tion �hall b�cc�rr�e nul6 �nd void, o�hervuise it sh�ll be and
r�rnain ir� full fc�r�e ar�d �ffect, �nd �h�ll bind Cc�ntractor, ��ar�ty, their h�irs, �xec�tors, adr�en�strators, �ucces��rs and
a�sigr�s,jowntly and �e��rally.
It i� hereby �fi�pulated and �gre�d that this b�nd �hall �nur� fio th� b�neft csf all p�rson�, cornpar�ies,
c�rpcar�tic�ns, poli�ical subdivisic�ns, �tate �genci�s ar�d cath�r�r�tsts�s entitled to ass�rfi � clairr� �g�ir�sf a p�yr��nfi bar�d
�nder ar�y c�� th� ��c�res�id Givil Cod� prc�visior�s, so �s to giv� a righ� of actiar� �o th�rn a�r their ��signs ir� �ny suit
bro�ght upc�n thi� bond. l�h� Sur�fiy, f�r v�l�e reeeived, her�by sfiip�lat�s �r�d �gr��� th�t nc� ch�nge, exfiensi�ar� caf
�ime, alt�r�ticar� c�r �ddifiicrn #o the t�rrris c�� �h� G�r�tr��t �r fio the �rork to b� perfiarm�d ther��and�r c�r to th�
sp�cifiic�fiions �cc�mpanyir�g the s�me �h�ff in �ny �r�y �affect it� obligats�ns on this ba�td, and it do�s her�by w�ive
ncati�� o� �ny such char�g�, ��fier�sian, alt�rafiie�n c�r �dditie�r�. F�rthermare, �nd for v�lu�ble ���sid�r�tian, Surefiy
hereby vvaives th� prc�vision�of Californi� �ivil Ccade S�ctio�� 2$19, 2�45, �r�d 2849.
I Il` , �e h�v� h�reto set�ur h�rtd� artd s��l� c�n this d�y af ,
�' .
�rincipal
City Attorr��y �y:
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F'arr��la Miz�, City�I�rk �Var�e�f�ur���e
By: (�e�E}
Att�arr��y-I r�-Fact
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Exhibit B2
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7'F�A� �t���A�, the �ity �caurr�il �af th� �ity of R�ddir�g, � �ur�i�ipal �orpcar�fiian, a� C?�nrner, �t it� reg�lar m��tir�g held
or� , h���warded to
�� F'rincipaMp � c�antract to do�rrd p�rforrn th�follo�nri�g vvc�rk tcs-�it:
a�will rr�eare ftal€y�pp�ar ir� ��icf canfir�ct, the terrv��a�d ccar�diticar�s of said c�r�tract b�ir�g fully incc�rpor�t�d herein by thi� ref�r�r�ce.
�I���A�, s�id Prirrcip�l i� r�quired under term�of s�id ccarrtract tca furni�h � bo�d far th�f�ithf�l perfor�n�n�e of said
c�antract;
�� ,T'FI���F ��, �r�, th� �'rin�ipal �nd
�� �urety, �r� h�lc! �nd fir�nly bound untc�the C7wn�r in the��arn af
C�c�fl�r�$
lavvful rr�c�ney czf the llr�it�d Stat�� of 6�m�rica, for the paym�nfi v+�her�ofp �nr�f! and truly to lae made, we bir�d our��lve�, our h�ir�,
executc�r�, �drr�ir�i�trator�, ��cc�s�or��r�d ���igr��,j�ir�tly�nd severally,firrrrly by th��e pr��er�t�.
7'F�� ����ITI�� �F 1`Ft�� ��LIGATI��t 1� �l1�FlR that if said I�ri�eipal, hi� or its h�irs, �xecutor�, adrninisfrators,
succes�ars or a��igns, or subcorrfr�ctors9 shall in all thi�g� �tand to and �bide by, and welf �r�d truly keep ar�d perform the
cavenant�, cc�r�diticrr�s, �r�d agr��rr�er�ts in �h� s�id contr�cfi ar�d ar�y �It�rafiiar� th�reaf�� there pravided, carr hi� or�heir part, to b�
kept ar�d perFormed �t the time and in the mar�r�er th�rein �pe�ifi�d and in all r��p�cts a�cording tea th�ir true intent �nd m��rrir�g
��d �h�ll ir�der�nify ar�d s�v� h�rrr�l��� fihe (Jr�rner, its affiicers, and agen�� �a� ther�ira stipul�t�d ther� thi� csbligation sh�ll b��c�me
r�ull ar�d uoid; othe ise it shall be ar�d remain in�ufl force�r�d virk��.
A� the �ur�ty, for val�ae received, her�by stip�alates �r�d agr��� th�t no char�ge, ��t�rr�ion c�f time, �It�ratior� or additior� to
the term� of the corrfir�ct c,r fica tF�e v�ark �c� b� perfiorrrred fihereunder c�r fih� speciFicatior�� accorrrpanyir�g the ��rr�e sF��ll in ar�y w��
�ffect its obligatior�� on thi� b�r�d, �nd i� daes hereby �aive r�aatice oF�r�y such char�ge, �xt�nsian of time, aft�ration ar addition to
th�t�rrrr�Qf the car�tracfi c�r to t�e work c�r to�he specifie�tions.
Ifi s�id C�wner sh�ll requ'sre �ny �urther ear oth�r bor�d far it� pratectior� in th� prerr�i�es, �u�h furth�r or c�ther band shall be
f�arni�hed by the �'rirccipal vuith aur�ty or�tareti�s s�fi�facta�ry to tF�e Clwn�r wifihin t�r� d�ys after ncatic�of�uch r�quir�m�r�t i� giv�n
tca the �rir��ipal, �r�d in c�se af f�ilure on the parfi caf fih� F�rin�ip�l to carrrply�nri�h s�id r�quirert�ent„ fihe �vur�er�h�ll hau�fihe right, a�
its�ptie�r�, to t�rmin�t��aid �orrtr�ct uvith s�id Princip��.
I� Il��l��� h��R��F,_we h�ve herete��et our h�r�ds and �e�ls c�n�his � day eaf ,
�����t���A�T`� FO� e
F'rin�ipal
�ity�ttorney �y:
A1"T`��T°: f�e�11
F��rr��l� Mize, �ity�lerk �1�rv�e caf�urety
�y: (�eaf}
,�,ttorney-In-F�ct
2
Exhibit B3
,
� ���� ��� ..
� -
KNOW AL� MEN BY THESE PRESENTS:
THAT E, the undersigned,
as Principal, and
a corporation organized and existing under the laws of the State of California, and
autharized to do business in the State if Califarnia, as Surety, are held and firmly bound unto the CITY OF REDDING,
hereinaf#er called Obligee, in the sum
( ) Dollars,
lawful money of the United States of America, for the payment of which well and truly to be made, we do hereby jointly and
severally bind aurselves, our heirs, executors, administrators, successors and assigns firmly by these presents.
NE EAS, said Principal has heretofare entered into a contract with the Obligee abave named far
, and,
HE EAS, the work called for under said contract has been eompleted and accepted by said Obligee:
O , THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if said Principal shall, for a period of
one year(s) from and after the day of , \indemnify the Qbligee against
any loss or damage directly arising by reasan of any defect in the material or workmanship which may be discovered within
the period aforesaid, then this abligation shall be void; otherwise the same shall remain in full force and effect.
PROVIDEQ, HO EVER, that in the event of any d�fault on the part of said Principal, written statement of the particular
facts showing such default and the date thereof shall be delivered to the Surety by registered mail promptly and in any event
within ten (10) days after the Qbligee ar his representative shall learn of such default; and that no claim, suit, or action by
reason of any default of the Principal shall be brought hereunder after the expiration of thirty (30) days from the end of the
maintenance period as h�rein set forth.
IN IT ESS HEREOF, we have hereto set our hands and seals on this day of ,
APPROVED AS TO FOR :
Principal
City Attorrtey By:
ATTEST: (Seal)
Pamela Mize, City Clerk Name of Surety
By: (Seal)
Attorney-I n-Fact
3
AGRE�M�NT TO PROVIDE
REIMBURS�MCNT FOR
THE CONSTRUCTION OF SEWER LINE
TH15 REIMBURSEMENT AGREEM�NT is Rx�ade and entered i��to by and between SIERRA '
PACIFIC LAND AND TIM[3ER COMPANY; hereinafter referx•ed to as "Develaper" and the ',
CITY O�` REDDING, a Municipal CorpoR•ation, hereinafter referr�d to as"City": ',
WHEREAS, the City installs a�id �naintains sewe�• lines within the inco�•po�•ated areas of
the City; a�1d
WHEREAS, the Developer is constructing a development project known as Salt Ci•eelc
Heights Subdi�ision;and
WHEREAS, the Developer was conditior��d (AMND-2017-00160} to upsize the Tri�lify
Street sewer litae dowr�stream of Manholes.�6-41, J6-28, and l6-32 {the"Project"); and
WHEREAS, the conditians state the Developet•anay�•equest rei�nburseEnent o�•c�•edit from
the City Wastewater Utility for these improvcments; and
WHEREAS, City Council Po3icy 1502 authorizes developer pai�icipation agree�ne��ts
adhering to the guidance of the policy;and
WH�R�AS, Per the Conditions of Approval, the D�veloper has requested that the City
reimburse costs fo�• the design and consit�t.tction oF upsizing the sewe�• collection line inside the
incorporated area of t�ae City; and
WHERCAS, the City and the Developer's design engineer has �sti�nated �hat tk�e cosf to
design and c�nstruct the sewer [ine fo�•the praposed projecC is$1,940,�a0(the"Estimated Project
Cost"). '
NOW,TH�REFORE,�T IS AGRE�D by and between the parties hereto as fo(lows:
SECT�ON 1. DEVELOP�R
The naines, add�•esses, and desc�•iptions of the person or persoi�s h�rein collectively referred to
as "De�elaper" are as tollows:
Name Address
M.D. Eininez•son 19794 REverside Ave.
Sierra Pacifie Land &Tirnber Company Anderson, CA 96007
SECTION 2. SCOPE O�'WORK
A. Developer agrees to cause ta construct sewer lines along the location and route ofthe
sewer fine shown on Exhibit A,attached and incorporated he�•ein, In general,the sewer
line slaall extend fram Caurt Str�et th�•ough APN: 103�010-002, under Union Pacific
Railroad (UPRR), along Tri�ity Street to Continental Street and all other associated
work{callecti�e�y, the"Work").
S. The Work shaEi be perfor[ned slrictly [n accordance with developme��t plans that have
been preparec{ by Sha�•rah Dunlap Sawyer, (nc., ci�il �rtgineet•s ("Designet•") at the
direction of the Developer based on the City af Redding Constructio� Standards and
reviewed and appi•oved by UPRR and the City's Public Wo�•ks Engineering Divis�on
(the "Final Plans"), inco�•parated I�erein by refe�•ence. De�elop�nent PEans shall
include da•awings, specifications, bid item breakdown list with unit pz•ices and all
other p�a•tinent info�•r�atinn and exhibits rega�•ding the �roject. The Wark shall be
subject to insp�ction by and approval af the City's Public Works Cngineering
Di�isio�� for conFormance with tl�e Final Plans and sour�d constri�ction practic�s. If
the Construction/lnspection Managei�ent Divisior� of the City's I'ub�ic Wo�•ks
Engi��eering Di�ision, i�l its judgmetat, determines that any Wo�•Ec is not in substantial
confarinity with the Final Plans and City of Redding Co�istruction Stancfards
{CORCS) or are not otherwise in substantial confor�nity with souild building
practic�s, the City shall have the t•ight to o�'der a cot•rection to the Wor[c by writte�l
notice to the Develo�eE•. All correction casts d�ae to non-confo�'mity will not be
reimbu�•sed by the City and shall be bo��ne by the Developer. No i��aterial changes
shall be made to the Fir�al Plans or speci�cations without the City's prior written
consent.
SECTION 3. PROJECT COSTS
A. Estimated Pra;e�ost: The estimated project cost is approximately one million nine
hundred forty thousand dollars ($1,940,000). Costs include design, consteuction, and
canstruction management. ]t is acicnowledged that the estimated cost is based upon
pr•eliminary cost estimates, and is not the t'esulf of coinpetiti�e bids, and, therefore, is
subject to change. Casts shall be reizz�6t�rsed to Developer per Section 6 bclow.
���
B. Tofal Project Cost: Develop�r agrees to deliver the �'i•oject to the City fo�•a Total
Project Cost w�iich shall include the Actual Canstructinn Cast, as defined in Section
3.0 herein. The Tataf Project Cost shall be set by the C�ty, known as the A�praved
Budget per Section 6, foltowing the bid apening.
C. Actual Const►•uctioi� Cost: The aetual coE�struction cost shall includ�, as her�inafter
pE•ovided, Improvement Costs, cQsts oFChange Orde�•s, and Other Cost Increases
defi��ed below {"Actual Construction Costs"}.
1. Itnp��o�ement Costs: The improvement costs i►�►cEude, but shall not be limited
ta, casts of preparing the Project budget, CDI1511'UCttOt�, bonds, al I other fees
and charges {e.g., pertnit fees, insp�ction fees, etc.} associated with actual
construction ofthe �'roject, engineering, surveying, staki��g, perinitting costs,
and construction manageincnt costs.
Z. Chan�e��•ders: A "Change Order" is a written ordei•, approved by the City,
fi•om any of Developer's autho�•ized r�p�•esentati�e (Developer's Age�lt) to the
cont�'actor performing the waek authorizing a change in the work ta be
perfa�•�ned. Chaz�ge Orders�nay be need�d where changes in the Project are
made r�ecessa�y if{1) unforeseen conditians arise du�•ing construction {Z) such
change would result in materials of lesser quality being used in the Wo�•k, or
(3} such change z•epresents a deviation, whether or not lesser qtiality, in the
Final Plans and specifications after constrtiction begins. City has ri�ht to
authorize or reject change order�•�quests. l-1.11 Change Ordees must be
approved in writing and deli�er such Change O�•der ta Developei's Agent as
identified below.
a. Approval of Chan#�e O��de�'s: A "Chan�;e Order" is a written order fi•om
Developer and City to the contractar perfo�•ming the work authorizi��g
a change in the work to be perl'armed. Developer's Agent shall notii'y
City's representative, af the need for a Change Order and City's
repres�ntative shall either approve or reject said Change O�'der with�n
ten (10) wo��king days of receivin�; Deve[ope�'s Agent's written notice.
City staff may app►•nve Chan�e Orders. �or purposes of notification
with rega�•d to Change Orders, the City's representative shalE �nean the
person i-esponsible for overse�ing design and cor�strtictia�a, and will be
established at the pre-constructian meet�ng.
b. Marku afChan �Ot•de�•s: Work by Contracto�•. The following
pe�•centages shall be added to the Co�itractor's costs and shall
constitute full pay�r�ent fot•all ove►•head and profit.
Overhead casts shall inclt�de, but not be limited ta sucl� items as
p�•oject superintendent, project manage�•s, field and home oftice
expenses.
l} Labor 35%
2} Mate�•ial 15%
—3�
3} Equipment Rental & Other Items I 5%
4} Subcontractor Work 10°/o (this markup tnay be applied a tnaximu�n
ofane time to the exta•a work bill)
Wark by Subcontracto��. When extra work is perfor�ned by a
subconti•actot•, the fal lowing pe�•centages shall bc added to the
subcontracto�'s casts and shall canstitute fuli pay�nent
for all o�erheac# and pro�t.
Overhead costs shall include, but not be limited to such ite�ns as
project superintendence, project managers, fieid at�d home office
exp�nses.
1} Laboc 35%
2) Material 15%
3) Equipment Rental & Other Items 15°/a
4) Second-Tier Subco��t�•actar 10%(this markup �nay be applied a
maximum of one time to the extra worlc t�ill}
D. Solicitatio� of Bids: Developer shall solici# sealed bids for the constructiail of the
Work in accordance witl� Public Cont��act Coc�e {PCC} Section 22037 as folEows:
1, The notice inviting formal bids shall state the titne and place for the receiving
and opening of seafed bids and distinctly describe the project. The notice shali
be published at least foul�teen (14) calenda�•days before the date of opening
the bids �n a newspaper of general circuiation, print�d and publish�d in the
,jurisdiction of the public agency; ar, if there is no newspape�� printed and
published within the jurisdiction of the public agency, publication shall be by
posting th�natice in at least three places within the jurisdictEon of the public
agency as have been desigEzated by ordinance or regulatiotz ofthe p�iblic
ag�ttcy as places for pas�ing of its notices. The nolice invitit�g formal bids
shall also be mailed#o all constri�ctian trade joui•i�als speci�ed in PCC Section
2203, Construction Bidboard (ebidboard), Dodge Data & Analytics,
Humboldt Builde�•s Exchange, Shasta Builde�•s Exchange, and Placer 6uiiders
Exchange. The notice shall be tr�a�led at least 3a caiendar days before the date
of opening the bid.
2. Bid O enin and Award of Contract: Developer shall ope�1 sealed bids in
presence of City's authorized z•epresentative{s). De�eloper shall p��ovide City's
representative(s)with a copy af the tabulation of bid resufts, Developer shaE!
award contract(s} fot•the constriiction of the Project to the qualified and
t•esponsibfe contractar{s) sub�nit�ing tl�e lowest responsible and responsive
bid(s), as mutually agre�d by Developer and City's autho�•ized
representative(s). DevelopeE�shall be the awarding body of the cont��act fot•the
construction of the Wot'k, and City shali i�at be a party to said contract. Ii�the
event the lowest responsible and �•esponsi�e bid, co�nbined with a t•easonable
amot�nt for contingencies, exce�ds the Estimated Construc�ion Cost set forth
in Section 3 abo�e, the increase in the Estimated Construction Cost must be
�4�
approved by City prior to awarding the contract.
S�CTION 4. TERM AND TERMINATION
A. Developer shall cause the Canlracto�•(as defir�Ed below)to co�nmence the Work by the
issuance of a Nofiice to Proceed deli�et•ed aftec•executiotj of the Construction Contract
and the Developer estimates that the Work shall be completed no later thaxl Sep�e�nber
1, 2423.
B. lf De�elopei• fails to perfo�•m ar co�nply with any af its obEigations under this
Ag�'eemen#,as and when required, which contirn�es for a period of thirty{3Q}days after
wi•itten notice of such fail��re by the City to Developer (provided, howeve�•, if s�ch
failure is susceptible of cure 6ut cannot reasonably be cured within s��ch thirty(3Q) day
periad, and Deve�oper shall have comm�nced to cure sueh fai[ure within sl�ch thirty
{30) day pe�•i�d and thereafter diligentiy and expeditiausly proceeds to cl�re the same,
such thi��ty (30) day periad s�all be exte��ded for an aclditior�al period of ti�ne as is
reasonably necessary fo�•the Developer in the exe��cise of due c#ili�;ence to cure siich
Failure), then City shall hav�the right to terminate this Contract effective im�r�ediat�ly
after the passage of appficabie notice and cure periods. Upon such ter�nination, the
Developer shall be entitled to receiv� reim6ursement for Work coinpleted in
conformance with the Final Plans and City of Redding Const�•uction Standards, but nnt
with i•espect ta any Work not executed by the Cont�-actar.
C. City may ter•minate this Contt•act without cause on thit�ty {30) calendar days' written
notice. In the event of termination by the City without ca�se prior to cammencetnent
af construction, the Developec shall 6e entitled to receive reimb�rse�nent fo►• costs
incuri•ed by the De�eloper as a direct z•esult of such termi��atior�. In case of termination
foc the City's conv�nience at�er comnleneement nf const�•uction, the Developer shall
be entitled to z•eceive payment for Work completed, and casts i•easonably incurred by
Developer as a direct result of such terininatian {including, without limitation, any
termination fee or• cost due Contractor anc{/or any subcontractor ox• materialman), but
not with respect ta any Work nat completed by Contractor.
D. Developer hei�eby acknowledges and ag�•�es that the obligatio�� of City to pay�inder this
Contract is contit�gent upon the a�ailability of City's funds which are approp�•iated o�•
allocateci by the City Council. Should the funciing for th� Work set forth herein not be
appE•op�•iated or allocated by the City Council, City may tez•n�inate this A�;reement by
fua•nishing at least thirty(30) calendar days' writte�l natice af its intention to terminate.
in the evet�t of a tertnination pursuant to this subdivision, Develop�r sl�ail t�ot be
entitled ta a re�nedy of acceie�•ation of payments due over the t�r�n of this Ag�•eement
but shall be entitled to reimbursernent as set farth in Section 4.0 abov�. The Pai-kies
acknowledge and agree that the power to t�rminate described la�rein is �•equired by
Article 16, Section I$,ofthe Califor'r�ia Constitution, and that co��stitutional p�'ovision
supersedes any law, r�ile, regulation or statute which conflicts with the provisions of
#his Sectian,
E. In the event that City gives natice of terE�ination, Dev�loper shal l p�•oEnptly assign and
�g�
deliver to Ciiy any and ail finished and unfinished reports, data, studies, phatographs,
charts o�� other non-legally privi[�ged work p�•oduct prepared by oE• at the direction of
De�eloper p�rsuant to this Contract to the extent assig��able 6y the Developer. To the
extent perinitted by law, City shalf have full ow�le�•ship, i��cluding, but not fi�nited to,
intel lectual propet�y t•ighfs,and controE af all such finished ar�d unfinished�'eports,data,
studies, phatographs, cha��Ys or othe��work product.City agrees and acknowledges that
any work p�-oduct transferred putsuant to this Section 4.E are t�•ansferi•ed "AS-1S"
�vithout any repz•esentatior� or warranty by Developer and Develo�er shall have t�o
iiability to City ar any other party with respeet to the l�se o�any such work p�•oduct
afte�•the termination af this Contract, and City shall, ta the fullest extent per�nitted by
iaw, indemnify, protect, defend and hold harmiess, Dev�lopet•, its �nembers, officers,
employees, ag�nts and representatives, and each and eve�y one of theEn, fi�oin and
against a11 actions, damages, costs, liability, clai�ns, losses, pei�alties a�ld expenses
(iilcluding, but r�ot limited ta, t•easohab[e attorneys' fees, exper•t fees, litigatio�� casts,
and investigative costs} of every type and desc�•iptian to which any ar ail of them may
be subjected, which in any way a►•ise out of o�•relate to the €�s� of the wot•k p�'aduct.
F. Subj�ct to Section 4. C, in no event shall the termina�ion or expit•ation of this
Conti�act be construed as a waiver of any �•ight in seek remedies in law, equity o�•
othe�•wise for a Party's failure to perfot•m each o6ligation requi�'ed by this Cont►•act.
S�CTION 5. CONSTRUCTION
A. The Developer shall cause the Woa•1�to be perfo�•med by a contt•actor ("Cant�•actor")
licensed in the State of Califo�•nia for the Work performed and shall require a
construction contract ("Canstruction Contract") the for�n a�id coi�tcnt of which �n�st
be reviewed ar�d approved by the City's Public Works Engineet�ing Divisioz� prior to
executior� by the Developer. The Construction Contract and canstr•uction
management will include, but not be limited to, the following key elements:
• Califot•nia Prevailing Wage Requiretnents per Section 10 of'this A�;reement
• Conti•actor registration with the California Depart�nent of Industrial Re[ations
per Section 1 Q of this Agree��ent
• Industry standard performance bond and payment bond with eaeh not less than
100 percent of the contract work and a�nair�tenance bond in an amount not less
than 50 pe�•cent af the contract worlc. The�naintenance bond shali ea,tcnd 12
consecutive months beyor�d the Noticc of Comple�ion date indicating City
acceptance of th� Wo�•k, The fortn of the requi�•ed bands shal l be substantially
in the fot•m aitached hereto as E�ibit"B1, B2, and B3".
• The D�velaper shall cantract with a qualified entity ("Constn�ction Manager")
to pro�ide all construction managemenl se�•vices to include quality conti•ol,
�naterial testing, labor compliance ancf afl neeessaiy field inspectian to ensure
the project is built to the bid specifications, �'ina[ Plans, and CORCS.
lnspection should bE cor�sidered inter�nittent dependent on the wot•k being
performed. The Construetion Manager shall be er�titled to a fee, which fee shall
be paid by De�elopei'as part of the App�'oved Budget, of the Co�lstruction
Manager's generaE canditions. Canstruction Manager qualifications shall be
submitted and approved by the City prior to Develo�er entering into an
ag�•ee�ent. The qualifications of the Constructioi� Manager shall include all
���
projects in progress oc•completed over the last fve {S}years that are coinparahle
to the pz•oject, designat�d personnel and their �•oles on submitted projects and
include agency references with names, addresses, and curcent phone i3u�nbe�•s.
The i•esponsib[e personnel of the Construction Mana�;er shall also be identifed
and at minimum shall incl►�de the Project rnanager, Resident �ngii�eet•, Inspecta�•
and other key pz•aject staff who will be directly involved in the project.
B. The Developer shall keep an accurat� recard of the actual cost of the Project in
accor•danc� with generally accepted accounting procedur�s, Developer sl�all allow
the City's authorized z•epresentatives to exainine and provide copies of any records
r�levant to the verifieation of the actual cost of constt�ucling the Aroject, ineludzn�;,
withouC limitatioii, all contract 6ids, invoices, and change oz•ders. Any changes that
occu�•during the course of cnnstructio�� shal9 6e praperly docuEne��ted.
C. "I"he Constructioti Contract shalf be a guaranteed maximum price or stipulated su�r�
contract and sha�l contair� industry standai•d warranties and indemnities in favor of
the City as set forth in Section 8 hereo#: The Cantracto�• shall have ali licenses,
pet•�nits, qualifications and a�provais of any nature whatsoever that are legal�y
required for Contractor to carry out th� Work.
D. Attention is directed to the provisians in Sections 10262 and 1a262.5 of the Public
Contract Code and Section 7108.5 of the Business and Professions Code concei•ning
p�•ompt payinent to subcontractors.
E. Upon satisfacto�•y compietion,the Developer shalt pi•epa�•e and deliv�r to tl��City as-
built constructian drawir�gs in a format acceptable to the City.
F. The Developer shall have the sole �•esponsibiiity for obtaining and �naintaining
records of any and all necessary acc�ss agceements and easetnents onto privat�
property for construction of any portion the wot'k �•equired by the project including
sta�ing areas and temporary construction easements. The Developer shall be
responsible far any cosfis ass�ciated with obtaining access,agreeme��ts and easeinents
and verifying the �alidity of existin�easeinents
S�CTION 6. DEVELOPERS RE UEST FOR REIMBURSEMENT
A. City shall reimb�rse Developer fnr the actual casts of the Wark, in accordance with
Section 3.B,and in an amount not to exceed the Approved Budg�t described in
Section 6.B below.
B. The Developer shall submit to the City a proposed bud�et for coinpletion of the Wo�•k
(wl�ich shall inciude the Desigi�er's fee, the Construction Manager's fee, the
Construction Manager's general conditions, and the praposed Construction Contract
amount) for review and approval, which approval shall �aot be unreasonable withheld,
conditioiled, or delayed. The City shall, within �ve (5) business days, a�prove the
proposed budget, ot• provide to the Developer a statement of changes req�aired ta be
���
inade in nrder for the praposed budget to be approved. If the praposed budget exceeds
the �stimated Project Cast, Counc�l approval shall be requiz•ed. The Der�eloper shall
not cause construction to comrnenee utlless the pz-apased budget has been app�•oved by
the Cify.Onc�approved by the City,the propos�d buc[get as rnodified by change ordet•s
is refer�•ed ta hereir� as the"Approved Budget."
C. Developer sha(I submit fundin�;requests as frequently as monthly ta the City for Wark
co�npleted to the date of the funding request. All funding requesis s�all include a
cei�tifieation from the Constructinn Maz�ager that speci�ed Work has been compieted
(including pe�•centage of com�letion} in a good and workmanlike tr�anner and that,
except far Wo�•k covered by the current fiinding ��equest, all due and payable payments
have been made for ali othez•labor and rr�ate�•ials eacluding a S percent ret�t�tian payable
at time a�final payment.The fundi�3g request shall also inclt�de certifed payroll�•ecords
in accordance with Section 10.A and conditional or unconditianal i•eleases of iiens
(through the date cavered by the iin�nediately precediilg funding request) fi•am (a) the
Cor�tractor and {b) all oEher patential lien claimants (e.g., subcontractors, laborers,
materialinen) perforining labor or services ot• supplying materials in cannection with
the Worlc.
1�ithin Yen (10) business cfays after z�eceipl of a fundi3�g request fran� Developer, the
City�'ublic Worlcs Engin�e�•ir�g Division shall approve the cornplete fundiEi�request or
only a portion ofthe funding �•equest in its r•easona6le discretian ai�d notify Developer.
The City shall not disapprove a #'unding requEst that conforrns with the Approved
Budget and is accompanied by the backup documentation required above. If the City
Public Wo�•ks Engineecing Division disapproves any arnount re�uested by Develope�•
iEi a disbursement request,the City shali promptly notify Develaper of the disapproved
amount and the reason for disapproval. If any item in a disburseinent request is
disappro�ved, the representatives of Developer and the City shall �neet pi•amptly at�d in
good faith to attempt to resoive the inatter to their tnutual satisfaction.
D. All correct, compiete and undisp��ted funding requests sent by Dcveloper ta City shall
be paid within thirty (30) calenda�•days of ceceipt.
SECTION 7. MISCELLANEOUS PROVISIONS
A. �ach of the undersigned sigr�atories hereby represents and warrants that they are
authorized to execute this Agree�ent oi� behalf of the respective parties to this
Agreerr►ent; that they have full right, powe�• and lawful autho�•ity to i�nderta�Ce all
obligations as provided in this Agreement; and that the execution, pe�'forir�ance
and delivery of this Agreement by said signatories has 6een fuliy authorized by
all requisite actions o�the paz•t ofthe ►•esp�ctive parties to this Agreement.
B. This �lgreement has the satne force and effect as any deed covenant ��unning
with the land and shall be��e�t and bi��d afl owners of fihe propei�ty p�•esent and
future, and th�ir heirs, successars and assigizs.
C. Developer shail, during the entire term of this Agree�nent, be construed to be an
independent contraetnr and nothi��g in this Ag�•eement is intei�ded, 1�01' SI���1 it t7�
construed, to create an e�nployer/�mploy�e�'elationship, assaciation,joint venture
�g�
t•�lationship,irust or partnership or to allow City to exercise disc��etion o�•control
over the professional manner in which Deveiaper performs ui�de�•this Agreei�ent.
Ar�y and aEl taxes irnpased on DeveEapet•'s income, i�nposed or assessed by �•eason
of this Agreeinent or its perfo��mance, including but nat limited to use taxes, shall
be paid by Develaper. Devetopet' shall be responsible for any taxes o�•penaities
assessed by i�eason of any clairras that De�elnper is an employee nf City.
Develaper shail not be eligible for coverage unc�er City's worlcers' camper�sation
insurance pian, 6enefits under the Public Employee Retiremet�t System or be
eiigible fo�'ar�y other City benefit.
D. No provision of this Agr•��ment is intended to, or sl�all be for the bene�t of, oi•
construed to create rights in, or g�'ar�t remedies to, any pe�•san ot• entity not a party
he�•eto.
E. Developer shall cause the Contr•actoE�to maintain accounts a��d records, including
personnel, property and finar�cia[ reco�•ds, adequat� to identify and account for all
cos�s pertaining to the Work. These t•ecorcis shall be tnade available far a�dit
put•poses to atty authorized rep�•esentative of Ci�y. Developer shall retain such
records fo�• thi•ee (3) years aft�r the expiration of this Ag�•eement, unless prior
pei'inission to destroy them is granted 6y City.
F. To the greatest extent permit�ed by applicable law, each ofthe Parties hereto hereby
i�•revocably wai�es any and all right to triai by ju�y in any action, proceedin�;, claim
or counter•claim, whether in cont�•act or toz-t, at law or in equity, arisin�; out of or in
any way �•elated to this Agreement or the transactions contemplated hereby. Each
Pai�y further waives any right to consnlidate any actian which a,jury h•ial has been
waived with any other action in which a jury trial cani�ot be or has t�ot beer►waived.
SECT�ON 8. INSURANCE
The obligations to the City required ofDeveloper in Section 8 relating to insu�'ance may be satisfied
by ❑eveioper's authorized subcontractar if th� obligations set fo��th in Section 8 are n�et by th�
Dev�loper's subcontractor. Or�ly in stich event shall Developer be �•elieved ofthe obIigations s�t
forth in Section 1.
A. Contractar and Designer s�all rnaintain the following noted insu►•ance during the
d�►ration af the Contract:
Covera� Req�ired Not l�eq[aired
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers' Co�npensation and Employ�rs' Liability X
ProFessional Liability(Errors and Omissions} X
(Place an"x"i�i the appropriate hox)
B. Cave►�age shall be at least as broad as:
�-9�
1. Insurance S�rvices Office form number CG-0001, Commercial Ger�eral
Liability Insurance, ir�an a�nour�t nat less than$1,000,000 per occurrence and
$2,000,000 general aggregate for 6odily injury, pe��sanal injury and property
damage;
2, Insurance Servic�s Of�ee fori�numbei•CA-0001 (Ed. 1/87}, Campi•ehensive
Autotnobile Lia6ility Ins�rance, which provides For total limits of r�ot l�ss
than $1,OOO,a00 cambined single limics per accident applicable to all ow�led,
i�on-owned and hired vehicles;
3, Statutory Warkers' Compensation required by the Labor Code of the State of
Califot•nia and Employers' Liability Insu�•anc� i� an amount not less than
$1,000,000 per aecurrence. Both the Workers' Co�npensation and
Employers' Liability policies shal) cantain the insurer's waive�• of subragation
ii� favor of City, its eiected officiais, of�cers, etnployees, a�ents and
voluntee�•s;
4. Professional Lfability (�rrors and Ornissians} I��surartce, approp�•iate to
Developer's profession, against loss due to error or omiss[on o�' �t�alp�'actice
in an amaunt not less than $1,00Q,000.
5. Cout�se of Construction Insurance pi•oviding caverage fot•all "rislcs"of loss in
the amount of the completed project value.
6. Contrac�or Pollutian Liability, in the ainount af$1,000,000,to include but not
litnited to coverage for bodily inj��ry, property damage and cleanup arisir►g
from pollution conditions ct•eated by the contractot• or encountei�ed during
work at jab site.Coverage must apply to cleanup,darna�;e or inj�iry that occurs
on, or that originates from, t�re site.
7, The City does not accept insurance certi�cates or endarsemei�ts with the
wording "but only in the event of a na�ned insured's sole negligence" or any
other verbia�;e limiting the insured's insurance �'esponsibility.
C. Any deductibles or self-insured i•etentions must be declarecf t�and approved by City,
which approval shall not be unreasonably withheld, condit�aned o�•delayed. .
D. The G�neral Liability shail contain o�• be er�dorsed to contain the following
provisions:
1, City, its elected officials,affce��s, employees,and agents are to be covet•ed as
additianal insuc•ed as �•espects liability arising out of wor�C or operations
perfor�ned 6y or on behaif of Develaper; premises owned, Ieased o►• used by
Develop�r; or autamobiies owned, leased, hired ar bor�•owed by De�eloper.
The coverage shall contain na special limitations ot� the scope of protection
afforded to City, its ekected of�cials, officers, employees, agents and
volunteers.
� lp�
2. The insuranee coverage of Develop�r shal{ be prin�ary ins€�rance as respects
City, its e�ected officials, officers, �mployees, agents and volunteers. Any
insu�•ance or self-insurance inaintai�ed by City, its �[ected officials, of�icers,
emplayees, agents and volunteers,shall be in excess of Dcveloper's ins►rrance
and shall not contribute with it.
3. Coverage shall stat�that the ir�surance of Developer shall apply separately to
each insured against whom claim is mad� or s�it is bt•ought, except with
respect to the litnits ofthe insur�r's liabifity.
4. Each insurance policy required by this Contract shall be ei�dorsed ta state that
cove�•age shall not be canceled except after thirty (30) cafenda.r days' prio�•
written notice has b�e�� given to City. �r� addition, Dev�loper agt•ees that it
shall not redt�ce its co�verage ar limits on any such policy except after th�rty
{30) calendar days' prior written �lotice has been give�i to the insureds.
E. Insurance is to be placed with insure�•s with a current A.M. Best's ratin�, of no less
than A-V[i.
F. Develaper shall cause the Contractor to designate the City of Redding as a Certificate
Holder of t�re insurance. De�eloper shall cause the Contractor lo furnish City with
certi�cates of insurance and o��iginal endaE•sements effecting tl�e coverages required
by this cla�ise. Ce��ificates and endo�'sements shall be furr�ished to: Risk Management
Depa��tment, C�ty of R�dding, 777 Cypress Avenue, Redding, CA 96001. The
ce��tificates and enda�•s��nents for each ins«railcE palicy are Eo be si�ned by a pez•son
authorized by the insu�•er to bind coverage on its behalf 1�1E ei�dorseE��ents are to be
received and approved by the City's Risk Manager prior to the co�nmencetnent of the
Work.City tnay withhold payments to Developer if adequate ceE�tificates of insurance
and e�idorsements reyui►•ed have not been provided, or not been provided in a tiinely
i�anner.
G. The reqtaiee�nents as to the types and limits of insurance caverage to be rr�aintained
by Contractor as required by Section S af this Contract, and any appro�al of said
insurance by City, are not intended to and will not in any rnanner limit or qualify the
Eiabilities and obligations otherwise assumed by Cnnt�•actor pursuant ta the
Construction Contract, incEuding, without limitatio�a, provisions concerning
inde�nr�ifcation,
H. Ifany poiicy of insurance required by this Section is a"clairx�s made"policy,p��rsuant
to Cade of Civil Procedure § 342 and Gavernment Code § 945.6, Develaper shall
keep said insurance in effect for a period of eighteen{I 8)months a#�er the ca�npletion
of the Work.
L If any damage, including death, pe�'sonal injury or propet�ty dainage, occurs in
con�lection with the performance ofthis Contract, Developer shai l iinineciiafely notify
City's Risk Manager by telephone at(530}225-406$. No later thar�three(3)calendar
days afte�•the evenY, Deveioper shall sub�nit a w�'itten r•�part to City's Risic Manager
containing tl�e followir�g inforir�atiot�, as applicable: 1) name and address of injured
��� �
ar deceased person{s); 2) name and address of witnesses; 3} name a�id address of
Developet''s insura�ce company; and 4) a detailed description of the damage and
whether a�zy City property was involved.
SECTION 9. �NDEMNIFICATION AND HOLD HARMLESS
A. Consistent with Califa�•nia C�vil Code §2778, De�eloper shalE cause the Construction
CoT�t�•act to include prnvisions that require the Contracto�•, to the fullest extent
permitted by law, indemnify protect, defend and hold harm[ess, City, its elected
officials, afficers, einployees, and agents, and each and every one of thein, from and
against a11 actions, damages, costs, lia6ility, claims, losses, penalties and expens�s
{including,but not iimited to, reasonable atto�'�tey's fees ofthe City Attorney o�- I�gal
cour�sel t•etained by City, expet�t fees, litigatian costs,and investigatian costs)of every
type and description tn which any o�• ail of them tnay be subjected by �-eason of, o�•
resulting frorn, directiy or indirectly, the negligence, reckiessncss, or wiilfiil
miscanduct ofContracta�•, its office�•s, einployees or agents in the perfot'mance ofthe
Work, except when liability arises due to the sole t�egligence, active negli�;ence or
�nisconduct of the City.
B. The Contracto�•'s o6ligatian to def�nd, inde��nify and hold ha►�mless shall not be
excused because of the Contracto�-'s inability to evaluate liabiiity. The Construction
Contract shall provide that Contractnt•shall respand within thirty (30) calendar ddys
to the tender of any claim for defense aR�d indemnity by the City, unless this time has
beeta extended in writing by the City. If the Contractor faiis to accept or reject a
tendet• af defense and inderr�nity in writing delivered by City within thirty (30)
caler�dar days, in additian to any other remedy authorized by law, the City may
withhoid such fut�ds the City i-easona6ly considers necessary for its defense and
indeinnity untif disposition has been made ofthe clairr�or until the Contractor accepts
or rejects the tender of defense in writing delivered ta the City, whichever occurs
fiE•st. This subdivision shali nat be ca��strued to excuse the prompt and continued
performance ofthe duties requi�'ed of Develapec or Cantracto�•herein.
C. The Cantractor's abligatian to inde�nnify, pro�ect,defend,and hald ha�•i�less set forth
in this Sectia�z applies to all claims and liability regardless af whether any insurance
policies a��e ap�licable. The policy limits of said insurance palicies do �ot act as a
li�nitatian upon the amaunt of indetnr�ification to be pi-ovided by Cantractor.
D. The Construction Contract shall pt•ovide that the City shall have the right to apprave
o�• disappro�e the legal counsel retained by Cor�tracto�• pursuant tn this Section to
represent City's interests. City shatl 6e reimbursed for all costs and attorney's fees
incu��•ed by City it� enforcing the obligatzons sel forth in this Section.
SECTION 10. PREVAILING WAGE LAW COMPLIANCE
A. Pursuant to Section 178 i of the Labor Cocfe, Developer is ad�ised that the work
cor�templated in this cnntract related to construction is subject tn the payment of
pi•evailing wages and all othe�• i•equirements of the I'revailing Wage Law. The
prevailing wage of each job classi�catian may be found by inq�i�y with the
... �Z.�
Califo�•nia Department of]ndustrial Re9ations. Develope�•shall coinply witkt all laws
related to the perfnrmance of public work including, but not li�nited to, the
etr�ploytnent of app�•entices pursuant ta Section I77'7.5 nf the Labar Code, worl<
day/week hours and overtiz�e rates pursuant to Sections 1813 ar�d 1815 of the C,abor
Code and the obligation set forth in Sec#ions 1774-1776 of the Labor Code in regards ,
to payment of prevailing wages and to prnvide t�e City of Rec�ciing and Department
of l�adL�strial Relations certified payroils when �•equired. A cei•tified copy af all
payroll records relative to this project shall be submitted to ihe City af Redding alon�
with �he related invoice. Iteceipt of cei•tified payroll z•ecords is a pre��equisite to
receiving payment.
B. No Contractor, sub-contractaE•, or const�ltant may be listed on a bid proposal for a
public wo�•ks project unless registered with lhe Depar�rnent of industriaf R�latians
pu�•suan�to Labor Code Secfian 1725.5. No Cantractor,sub-contracto�•, oE•cansultant
may be awardeci a contract for publie wot'k an a public works project uniess register•cd
with the Depat�meiit of Indust�•ial Relations pursuant ta Labo�•Code Section 1725.5.
All Contractot•s, sub-contractors, or consuitants must furnish electronic certi�ed
pay��oll records to the La6or Comn�issioner. This z'equiremet�t applies to all public
works p�•ojects, whether new or ongoing. Developer is further ad�ised that the work
contemplated herein is subject to compliance monitoring and er�farce�nent by the
Departir��nt of Industrial Relations.
C. Developez•shalE cause the languag�set forth herein to 6e i��clud�d 'm the Construction
Cont��act and contract with the Constructian Manager.
� 13�
IN WITNES5 WHEREOF, City ar�d Developer have executed this Reiinbu�•sement
Agreement on the days and yea�•set fot�kh below:
CITY OF REDDING,
A Munici�al Carpora�ion
Dated: , 2023
By: MICHAEL DACQU�STO, MAYOR
ATTEST: APPROVED AS TO FORM:
BARRY E. DeWALT
Ci�y Attor�ey
PAMELA MIZE, City C[erk By:
SIERRA PACIF�C LAND & TIMBER
COMPANY
l�/,�/!� ��
�
Dated: ,2fl23 r � -
By: , .D. EMMERSO
Tax ID No.: ��-� ��'���`���
�14�
��`� CITY OF REDDING, CALIFORNIA
�` '�'� COUNCIL POLICY
SUBJECT RESO�UTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE
DEVELOPER PARTICIPATION AGREEMENTS 01-21 1502 02-06-01 1 of 2
BACKGROUND
From time to time, it is advantageous for the City to enter into Developer Participation
Agreements with private developers for the design and construction of various types of public
infrastructure when the work is an integral part of a developer's project. This is normally done
when a developer and City contemplate the developer constructing project related
infrastructure with City funding including (but not limited to) impact fees and/or in-lieu park
funds.
These agreements are designed to outsource the design, construction and project
administration. The Director in charge of the funding source is responsible for developing the
scope of work and related agreement describing the infrastructure project (Project) with
support from the City Attorney and Public Works Director. The City Engineer and his designees
are responsible for administering the agreement and related project development and
construction of the Project, unless otherwise directed by the City Manager.
PO�ICY
The development and administration of a Developer Participation Agreement shall be based on
the following guidelines:
Project Scope, Cost and Schedule
All of the elements of the project will be identified and agreed upon by developer and City
including relative responsibility, project scope, cost and time frame for completion. These
elements will be documented in the agreement.
Devetoper Participation Agreement
The agreement will be prepared jointly by the Developer and the Director in charge of the
funding source and will include review/concurrence by the City Attorney and City Engineer. The
Agreement must be approved by City Council prior to any work on the Project. Following are
key elements of the agreement:
Funding
The agreement shall stipulate a maximum dollar contribution by the City which shall not be
exceeded without City Council approval. The agreement will include estimates of project costs
including Project Development and Construction costs.
Project Development
The agreement will include provisions requiring that the Project be designed in accordance with
City Construction Standards and include a City quality assurance oversight process.
��`� CITY OF REDDING, CALIFORNIA
�` '�'� COUNCIL POLICY
SUBJECT RESO�UTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE
DEVELOPER PARTICIPATION AGREEMENTS 01-21 1502 02-06-01 2 of 2
Construction
The agreement will require the construction contract (plans, specifications and bid quantities)
be developed by the developer and reviewed/approved by the City Engineer before putting the
Project out to bid. The construction contract will include, but not limited to, the following key
elements:
• Prevailing Wage Requirements
• Non Discrimination Provisions
• Title VI Requirements
• Insurance Requirements
• Contractor licensing requirements
• Department of Industrial Relations registration requirements
• Bonding—industry standard payment, performance and maintenance bonds
• Subcontracting requirements
• Contract Change Order Provisions
• Other items as required by the City Engineer
Bid and Contract Approval Process
The agreement will include a Public Works-like bidding process with defined City oversight
including the following key items:
• Advertisement—advertisement and bid opening dates, publications, etc.
• Addendum Procedures
• Bid Opening Procedures
• Bid Protest Process
• City Council Contract Award and Approval Process
Construction Management and City Oversight
The agreement will include the requirement for inspection and City Engineer-approved
construction administration oversight. In addition, the agreement will outline the following key
elements:
• Developer Quality Control and City Quality Assurance Requirements
• Construction Contract Change Orders approval and City concurrence process
• Progress Payment Process—City concurrence role
• Labor Compliance process and related City quality assurance
Contract Acceptance — agreement to include City Engineer approved notice of completion and
City Council acceptance of the project as complete. This will include developer submitting full
accounting of project costs before project being presented to City Council.
Amended 05/15/18 by Resolution No. 2018-045
16.20.090 - Reimbursement (cash or credit)for construction of facilities.
A. Reimbursement—A condition of approval and/or a development agreement for a land use
entitlement may require an owner or developer of a property to construct certain facility
improvements or portions thereof specified in the capital improvement program as updated
from time to time. Such direction allows the owner to petition the city council for
reimbursement for the cost of specified improvements related to any and all impact fees
applied to the project. The petition is allowed if the owner (a) constructs the facility, (b)
finances an improvement, (c) makes dedication of land in support of the facility, or (d) utilizes
a combination of the above. Reimbursement is subject to an approved agreement.
1. Reimbursed Improvements—The owner or developer shall only be eligible for
improvements included in the capital improvement program project. Frontage
improvements as defined below are not considered part of capital improvement program
project and are not eligible for reimbursement.
a. Frontage Improvements.
i. Roadway—Roadway frontage improvements typically consisting of a one-half
section, including curb, gutter, sidewalk, landscape, bike lane, parking lane,
acceleration and deceleration lanes and right- and left-turn lanes leading to those
roads and driveways, traffic-control measures for those roads and driveways, and
related storm-drain facilities along the entire frontage of the entitled project.
ii. Utilities—Utility frontage improvements include logical and orderly extensions of
water, wastewater, storm-drain utilities, streetlights, and communication facilities
along the entire frontage of the entitled project.
2. Reimbursed Value—The reimbursement amount shall be based on the actual value of land
dedicated for the facility, actual cost of improvements, and actual costs for engineering
and city administration.
3. Reimbursement Schedule—Upon completion of construction and acceptance of the
improvements by the city or financing the improvements in a manner satisfactory to the
city council, the owner or developer will be eligible for reimbursement in the year the
improvement is programmed in the city's capital improvement program. Reimbursement
is available only to the degree funds are available in any given year. If reimbursement
cannot be made during one year, the unreimbursed portion will continue in following
years until repaid.
4. Credit and Cash Reimbursement—The owner or developer will be provided
reimbursement in the form of development fee credits consistent with fee program and
type of improvement. If the amount of the fee credit is less than the amount of the
otherwise applicable fee, the property owner shall thereafter pay an amount which, added
to the credit received for the construction of facilities, equals the fee obligation. If the fee credit is
greater than the amount of the otherwise applicable fee, the property owner may be paid the
difference from the appropriate impact fee fund, providing funds are available.
5. Reimbursement Agreement—To implement this section, the city and owner or developer
shall enter into a reimbursement agreement prior to incurring any eligible project
development and/or construction costs. Reimbursement agreements will be considered
for approval by the city council.
(Ord. No. 2500, § 3, 9-3-2013)
AGREEMEIVT T4 PROVIDE
REIMBURSEMENT FOR
THE CONS'I'RUCTION OF SEWER LINE
THIS REIMBURSEMENT AGREEMENT is made and entered into by and between SIERRA
PACIFIC LAND AND TIMBEIZ COMPANY; hereinaFter referred to as "Developer" and tlae
CITY OF REDDING, a Municipal Corporation, hereinafter referred to as"City":
WHEREAS, the City installs and maintains sewer lines within the incorporated areas of
the City; a»d
WHEREAS, the Developer is constructing a development project knawn as Salt Creek
Heights Subdivision; and
WHEREAS, the Developer was conditioned (AMND-2017-00160) to upsize the Trinity
Street sewer line downstream of Manholes Jb-41, J6-28, and J6-32 (the"Project"); and
WNEREAS, the conditions state the Developer nlay request reimbursement or credit from
the City Wastewater lltility for these improvements; and
WHEREAS, City Council Policy 1502 authorizes developer participatioll agreen�ents
adhering to the guidance of the policy; and
WHEREAS, Per the Conditions of Approval, the Developer has requested that the City
reimburse costs for the design and construction of upsizing the sewer collection line inside the
incorporated area of the City; and
WHEREAS, the City and the Developer's design engineer has estimated that the cost to
design and construct the sewer line for the proposed praject is$1,940,004(the"Fstimated Project
Cost").
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NOW,THEI2EFORE,IT IS AGREED by and between the parties hereto as follows:
SECTION 1. DEVELQPER
The names, addresses, and desc�•iptions of the person or persons herein collectively reFerred to
as "Developer" are as follows:
Name Address
M.D. Envnerson 19794 Riverside Ave.
Sierra Pacific Land &Timber Company Anderson, CA 96407
SECTION 2. SCQPE OF WQRK
A. Deve(oper agrees to cause to construct sewer lines along the location and route of the
sewer line shown on Exhibit A,attached and incorporated herein. In general,the sewer
line shall extend from Court Street through APN: 103-010-002, under Union Pacifc
Railroad (UPRR}, along Trinity Street to Continental Street and all other associated
work(co(lectively, the "Work").
B. The Work shall be performed strictly in accordance with deve(opment plans that have
been prepared by Sharrah D��nlap Sawyer, Inc., civil engineers ("Designer") at the
direction of the Developer based on the City of Redding Construction Standards and
reviewed and approved by UPRR and the City's Public Works Engineering Division
(the "Final Plans"), incorporated herein by reference. Deve(opment Plans shall
include drawings, specifications, bid iteln breakdown list with uni� prices and all
other pertinent information and exhibits regarding the project. The Work shall be
subject to inspection by and approva] of the City's Public Works Engineering
Division for confortnance with the Final Pians 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 tha Final Plans and City of Redding Construction Standards
(CORCS) or are not otherwise in substantia( conforinity with sound building
practices, the City shall have �he right to order a correction to the Work by written
notice to the Developer. All correction costs due to non-conformity will not be
reimbursed by the City and shall be borne by the Developer. No material changes
shall be made to the Final Plans or specifications without the City's prior wcitten
consent.
SECTION 3. PROJECT COSTS
A. Estimated Proiect Cost: The estimated project cost is approxunately one mi(lion ni�1e
hundred forty thousand dollars {$1,940,000). Costs inc(ude design, construction, and
construction management. It is acknowledged that the estimated cost is based upon
preCiminary cost estimates, and is not the result of competitive bids, and, therefore, is
subject to change. Costs sha11 be reimbursed to Developer per Section 6 below.
�2_
B. Total Proiect Cost: Developer agrees to deliver the Project to the City for a Total
Project Cost which shall include the Actual Construction Cost, as defined i�� Section
3.0 herein. The Total Project Cost shal! be set by the City, known as the Approved
Budget per Section 6, following the bid opening.
C. Actual Construction Cost: The actua( construction cost shall inc(ude, as hereinafter
provided, Improvement Costs, costs of Change Orders, and Other Cost Increases
defined below ("Actual Construction Costs").
I. Inlprovement Costs: The improvement costs include, bu� shall not be timited
to, costs of preparing the Project budget, construction, bonds, al l other fees
and charges (e.g., permit fees, inspection fees, etc.) associated with actual
construction ofthe Project, engineering, surveying, staking, permitting costs,
and construction management costs.
2. Chan�e Orders: A "Change Order" is a written order, approved by the City,
f'rom any of Developer's au�horized representative (Developer's Agent}to the
contractor perfonning the work authorizing a change in the work to be
perfarmed. Change Orders may be needed where changes in the Project are
made neeessaty if(1) unforeseen conditions arise during construction (2)such
change would result in materials of lesser quality being used in the Work,or
(3) such change represents a deviation, whether or not lesser quality, in tihe
Final Plans and specifications after construction begins. City has right to
authorize or reject change order requests. All Change Orders must be
approved in writing and deliver such Change Order to D�veloper's Agent as
identified below.
a. Approval of Chan�e Orders: A"Change Order" is a written order fro�n
Developer and City to the contracfor performing the work au�horizing
a change in the work to be perforimed. Developer's Agent shall notify
City's representative, of the need for a Change Order and City's
represen�ative sha11 either approve or reject said Challge Order within
ten (10)working days of receiving Developer's Agent's written notice.
City staff may approve Change Orders. For purposes of notification
with regard to Change Orders, the City's representative shal( mean the
person responsible for overseeing design and construction, and will be
established at the pre-construction meeting.
b. Markup of Change Orders: Work by Contractor. The following
percentages shal! be added to the Contractor's costs and sha(1
constitute fult payn�ent for all overhead and profit.
Overhead costs slzall include, but not be limited to such items as
project superintendent, project managers, field and home office
expenses.
1) Labor 35%
2) Materia( I S%
�3�
3) Equipment Rental & Other Items 15%
4) Subcontractor Work 10% (this inarkup may be applied a maXimum
of one time to the extra work bill)
Work by Subcontractor. Wher� extra work is performed by a
subcontractor, the following percentages shall be added to the
subcontractor's costs and sha(1 col�stitute fuil payment
for all overhead and profit.
Overhead costs shall include, but not be limited to such items as
project su�erintendence, project managers, field and home office
expenses.
I) Labor 35%
2) Material 15%
3) Equipment Rental & Other Items 15%
4) Second-Tier Subcontractor ]0%(this markup may be applied a
maximum of one time to the extra work bill}
D. Solicitation of Bids: Developer shalf solicit sealed bids for the construction ofthe
Work in accordance with Public Contract Code (PCC) Section 22037 as follows:
1. The notice inviting formal bids shall state the time and plaee for the receiving
and opening of sealed bids and distinctly describe the project. The notice shail
be published at least fourteen(14) calendar days before the date of opening
the bids in a newspaper of general circu[ation, printed and published in the
jurisdiction of the public agency; or, if there is no newspaper printed and
published within the jurisdiction of the public agency, publication shall be by
posting the notice in at least three places within the jurisdiction of the ptiiblic
agency as have been designated by ordinance or regulation of the public
agency as places for posting of its notices. The notice inviting formal bids
shall also be mailed to all construction trade journals specified in PCC Section
2203, Construction Bidboard (ebidboard), Dodge Data&Analytics,
Humboldt Builders Exchange, Shasta Builders Exchange, and Placer Builders
Exchange. The notice shall be mailed at least 30 calendar days before the date
of opening the bid.
2. Bid Opening and Award of Contract: Developer shall open sealed bids in
presence of City's authorized representative(s). Developer shall provide City's
represen�ative(s)with a copy of the tabulation of bid results. Deve(oper shall
award contiract(s) for the construction ofthe Project to the qualified and
responsible contractor(s) submitting tl�e lowest responsible and responsive
bid(s), as mutually agreed by Developer and City's authorized
representa�ive(s). Developer shal( be the awarding body of the contract for the
construction of the Work, and City shall not be a party to said contract. In the
event the lowest responsible and responsive bid, combined with a reasonable
amount for contingencies, exceeds the Estimated Construction Cost set forth
in Sectio�l3 above,the increase in the Estimated Construction Cost must be
_4�
approved by City prior to awarding the contract.
SEC�'ION 4. TERM AND TERMINATION
A. Developer shall cause the Contractor(as defined below)to conlmence the Work by the
issuance of a Notice to Proceed delivered after execution of the Construction Contract
and the Developer estimates that the Woi•k shall be comple�ed no later than September
1, 2023.
B. If Developer fails fo perform or comply with any of its obligations under this
Agreement, as and when required,which continues for a period ofthirty (30)days after
written notice of such failure by the City to Developer (provided, however, if such
failure is susceptible of cure but cannot reasonably be cured within such thir�y(30)day
period, and Developer shall have commenced to cure such failure within such thiriy
(30) day period and thereafte�� diligently and expeditiously proceeds to cure the same,
sucl� thirty (30) day perlod shall be extended for an additional �eriod of time as is
reasonably necessary for the Developer in the exercise of due diiigence to cure such
failure), then City shall have the right to terminate this Contract effective immediately
after the passage of app(icable notice and cure periods. Upon such termination, the
Developer shall be entitled to receive reimbuY•sement for Work completed in
confc�rmance with the Final Plans and City of Redding Construction Standards, but not
with respect to any Work not executed by the Contractor.
C. City Inay terminate this Contract without cause on thirty (30} calelldar days' written
notice. In the event of termination by the Ci�y without cause prior to commencement
of construction, the Developer shall be entitled to receive reimbursement for costs
incurred by the Developer as a direet resuIt of such termination. In case of termination
for the City's convenience after com�nencement of eonstruction, the I�eveloper shall
be entitIed to receive payment for Work cor�lpleted, and costs reasonably incurred by
Developer as a direct result of such termination (includillg, without li�nitation, any
termination fee or cos� due Contractor and/or any subcontraetor or materiallnan), but
not with respect to any Work not completed by Contractor.
D. Developer hereby acknowledges and agrees that the obligation of City to pay under this
Contract is contingent upon the availability of City's funds which are appropriated or
allocated by the City Council. Should the funding for the Work set forth herein not be
appropriated or allocated by the City Council, City may terminate this Agreement by
furnishing at least thirty(30) calendar days' written notice of its intention to terminate.
In the event of a tennination pursuant to this subdivision, Developer shall not be
entitled to a remedy of acceleration of payments due over the term of this Agreement
but shall be entitled to reimbursement as set forth in Section 4.0 above. The Parties
acknowledge and agree that the power to terminate described hereirt is required 6y
Article 16, Section 18, of�he California Constitution, and that constitutional provision
supersedes any law, rule, regulation or statute which conflicts witll the provisions of
this Section.
E. In the event that City gives notice of termination, Developer shall promptiy assign and
_5�
deliver to City any and all finished and unfinished reports, data, studies, photographs,
charts or other non-legally privil�eged work product prepared by or at the direction of
Developer pursuant to this Contract ta the extent assignable by the Developer. To the
extent permitted by law, City shall have full owllership, including, but not limited to,
intellectual property rights,and controt ofall such finished and unfinished reports,data,
studies, photographs, charts or other work product. City agrees and acknowledges that
any work product transferred pursuant to this Section 4.E are transferred "AS-IS"
without any representation or warranty l�y Developer and Developer shall have no
Iiability to City or any other party with respect to the use of any such wark product
after the termination of this Contraet, and City shall, to the fuliest exte�lt permitted by
iaw, indemnify, protect, defend and hold hariniess, Developer, its members, officers,
employees, agents and representatives, and each and every one of them, from and
against all actions, damages, costs, liability, claims, losses, penalties and expenses
(inctuding, but not limited to, reasonable attarneys' fees, expert fees, litigation costs,
and investigative costs} of every type and descriptio��to which any or ail of them may
be subjected, which in any way arise out of or relate to the use of the work product.
F. Subject�o Section 4. E, in no event shall the termination or expiratic�n of this
Contract be construed as a waiver of any right to seek remedies in law, eauity or
otherwise for a Party's failure to perform each obligation required by this Contract.
SECTION 5. CONSTRUCTION
A. The Developer shali cause the Work to be performed by a contractor ("Contractor"}
licensed in the State of California for the Work performed and shal( require a
construction contract ("Construction Contract"} the form and cont�nt of which mus�
be reviewed and approved by the City's Pu�blic Works Engineering Division prior to
execution by the Developer. The Construetion Contract and constrliction
management wili include, but not be limited to, the following key elements:
• California Prevailing Wage Requirements per Section 10 of this Agreement
• Contractor registration with the California Department of Inclustria( Relations
per Section 10 of this Agreen�ent
• Industry standard performance bond and payinent bond with each not (ess than
100 percent of the contract work and a maintenance bond in a11 anlount not less
than 50 percent of the contract work. The maintenance bond sha11 extend l 2
consecutive months beyond the Notiee of Completion date ir�dicating City
acceptance of the Work. The farm of the required bonds shail be substantially
in the form attached hereto as Exhibit`B l, B2, and �3".
• The Developer shall contract with a qualified entity ("Construction Manager"}
to provide all construction management services to include quality control,
material testing, labor compliance and all necessary field inspection to ensure
the project is built to the bid specifications, Final Plans, and CORCS.
Inspection should be considered intermittent dependent on the work being
performed. The Construction Manager shall be entitled to a fee, which fee sha(1
be paid by Developer as part of the Approved Budget, ofthe Construction
Manager's general conditions. Construction Manager qualifications shall be
submitted and approved by the City prior to Developer entering into an
agree�nent. The qualifications of the Construction Manager shall include all
���
projects in progress or completed over the last five(5)years that are comparable
to the project, designated personnel and their roies on submitted projects and
include agency references wi�h names, addresses, and current phone numbers.
The responsible personnel of the Construction Manager shall also be identified
and at minimlim shall include the Projec� manager, Resident Engineer, Inspector
and other key project staff who wi11 be directly involved in the project.
B. The Developer shall keep an accurate record of the actual cost of the Project in
accordance with generally accepted accounting procedures. L�eveloper shall allow
the City's authorized representatives to examine and provide copies of any records
relevant to the verification of the actual cost of constructing the Project, including,
without limitation, all contract bids, invoices, and change orders. Any changes that
occur during the course of construction shall be properly documented.
C. The Construction Contract shall be a guaranteed maximum price or stipulated sum
contract and shall contain industry standard warranties and indemnities in favor of
the City as set forth in Section 8 hereof: The Contractor shall have all licenses,
permits, qualifications and approvals of any nature whatsoever that are legally
required for Contractor to carry oui the Work.
D. Attention is directed to the provisions in Sections 10262 and 10262.5 of�he Public
Colltract Code and Section 7108.5 of the Business and Professions Code concerning
prompt payment to subcontractors.
E. Upon satisfactory completion,the Developer shall prepare and deliver to the City as-
built construction drawings in a format acceptable to the City.
F. The Developer shall have the sole responsibility for obtaining and maintainiilg
records of any and all necessary access agreements and easements onto private
property for construction of any portion the work required by the project including
staging areas and temporary construction easements. The Developer shall be
responsible for any eosts associated with obtaining access,agreements and easements
and verifying the validity of existing easements
SECTION 6. DEVELOPERS REQUEST FOR REIMBURSEMENT
A. City shall reimburse Developer for the actual costs of the Work, in accordance with
Section 3.B, and in an amount not to exceed the Approved Budget described in
Section 6.B below.
B. The Developer shall submit to the City a proposed budget for con�pletion of the Work
(which shall include the Desigl�er's fee, the Construction Manager's fee, the
Construction Manager's general conditions, and the proposed Constructio�� Contract
amount) for review and approval, which approval shall not be unreasonable withheld,
conditioned, ar delayed. The City shall, within five (5) business days, approve the
proposed budget, or provide to the Developer a s�ateinent of changes required to be
���
made in order for the proposed budget to be approved. If the proposed budget exceeds
the Estimated Project Cost, Council approval shall be required. The Developer shall
not cause construction to cominence unless the proposed budget has been approved by
the City.Once approved by the City,the proposed budget as modified by change orders
is referred to herein as the "Approved Budget."
C. Developer shall submit funding reauests as frequently as monthly to the City for Work
completed to the date of the fi�nding request. All fundillg requests shall inc(ude a
certification from the Construction Manager that specified Work has been completed
(including percentage of completion) in a good and workmanlike manner and that,
except for Work covered by the current funding request, all due and payab(e payments
have been made for al]other labor and materials excluding a 5 percent retention payable
at time of final payment.The funding request shali also include certified payroll records
in accordance with Section IO.A and conditional or uneonditional releases of liens
(through the date covered by the immediately preceding funding request) fram (a) the
Contractor and (b) all other potential Iien claimants (e.g., subcontractors, laborers,
tnaterialmen} performing labor or services or supplying materials in connection with
the Work.
Within ten (10) business days after reeeipt of a funding request from Developer, the
City Public Works Engineering Divisio�l shall approve the eomplete funding request or
only a portion ofthe funding request in its reasonable discretion and notify Developer.
The City shall not disapprove a funding request that conforms with the Approved
Budget and is accompanied by the backup documentation required above. If the City
Public Works Engineering Division disapproves any amount requested by Developer
in a disbursement request,the City shall promptly notify Developer of the disapproved
amount and the reason for disapprovaL If any item in a disbursement request is
disapproved, �he representatives of Developer and the City shall nleet p1•omptly and in
good faith to attempt to resolve the matter to their mutual satisfaction.
D. All correct, complete and undisputed funding requests sent by Developer to City shall
be paid within thirty (30} ca(endar days of receipt.
SECTION 7. MISCELLANEOUS PROVISIONS
A. Each of the undersigned signatories hereby represents and warrants tha� they are
authorized to execute this Agreement o�� behalf of the respective parties to this
Agreement; that they have full right, power and lawful authority to undertake a(1
obligations as provided in this Agreement; and tha� the execlztion, performance
� and delivery of this Agreement by said signatories has been fully authorized by
all requisite aetions on the part ofthe respective parties to this Agreement.
B. This Agreement has the same force and effect as any deed covenant running
with tihe land and shall benefit and bind all owners of the pi•operty present and
future, and their heirs, successors and assigns.
C. Developer shall, during the entire term of this Agreement, be construed �to be an
independent contractor and nothing in this Agreement is intended, nor shail it be
construed, to create an employer/employee relationship, assoeiation,joint venture.
�g�
relationship, trust or partnership or to allow City to exercise discretion or control
over the professional manner in which Developer performs under this Agreeinent.
Any and all taxes imposed on Devetoper's income, imposed or assessed by reason
of this Agreement or its performance, including but not limited to use taXes, shall
be paid by Developer. Developer shali 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.
D. No provision of this Agreement is intended to, or shall be for the benefit of, or
construed �o create rights in, or grant remedies to, any person or eiltity not a party
hereto.
E. Developer sha(1 cause the Contractor to tnaintain accounts and records, including
personnel, property and financial records, adequate to identify and account for all
costs pertaining to the Work. 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.
F. To the greatest extent permitted by applicable law, each of the Par�ies hereto hereby
irrevocably waives any and all right to trial by jury in any action,proceeding, claim
or counterclaim, whether in eontract or tort, at law or in equity, arising out of or in
any way related to this Agreement or the 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 oi•has not been waived.
SECTION 8. INSI)I2AIVCE
The ob(igations to the City required of Developer in Section�relating ta insurance�na.y be satisfied
by Developer's authorized subcontractor if the obligations set forth in Section 8 are rnet by the
Developer's subcontractor. Only in such event shail Devetoper be relieved of the obligations set
forth in Section 1.
A. Contractor and Designer shall maintain the following noted insurance during the
duration of the Contract:
Covera�e Repuired Not Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers' Coinpensation 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:
�9�
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. 1/8�}, Comprehensive
Automobile Liability Insurance, which provides for total limits of ilot less
than $1,000,000 combined single li►nits per accident applicab(e to all owned,
non-owned and hired vehicles;
3. Statutory Warkers' 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 poticies shall contain the insurer's waiver of subrogation
in favor of City, its elected officia(s, officers, emp(oyees, agents and
volunteers;
4. Professional Liability (Brrors 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. Course of Construction Insurance providing coverage for a(1 "risks"of loss in
the amoulzt of the completed project value.
6. Contractor Pollution Liability, in the amount of$1,000,000,to include but not
iimited to coverage for bodily injury, property damage ar�d cleanup arising
from pollution conditions created by the contractor or encountered during
work at job site.Coverage must apply to cleanup,damage or injury that occurs
on, or that originates from, the site.
7. The City does not accept insurance certificates or endorsements with the
wording "but only in the event of a named insured's soie negligence" or any
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 shali not be unreasonab(y withheld, conditioned or dela�yed. .
D. The General Liability shall contain or be endorsed to contain the following
provisions:
1. City, its elected officia(s, officers, employees, and agents are to be covered as
additional insured as respects iiability 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 con�ain no special limitations on the scope of protection
afforded to City, its elected officials, officers, employees, agents and
volunteers.
-� i o—
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 of�crals, officers,
employees, agents and volunteers,shall be in excess of Developer"s insurance
and shall not contribute with it.
3. Coverage shal l state that the insurance of Developer shall apply separately to
each insured against whon� claim is made or suit is brought, except with
respec�to the lunits of the il�surer's liability.
4. Each insurance policy required by this Contract shall be el�dorsed to state tha�
coverage shall not be canceled except after thirty (30) calendar days' prior
written notice has been given to City. In addifion, Developer agrees that it
shall not reduce its covera�e 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 shalt be furnished to: Risk Managenlent
Department, City of Redding, 777 Cypress Avenue, Redding, CA 96001. The
certificates and endorsements for eaeh insurance policy are to be signed by a person
authorized by the insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City's Risk Manager prior to the com�nancement ofthe
Work.City may withhold payments to Developer if adequate certificates of insurance
and endorsements reguired 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 znanner limit or qualify the
liabilities and obligations otherwise assumed by Contractor pursuant to the
Construction Contract, inciuding, without limitation, provisions concerning
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 shaIl
keep said insurance in effect for a period of eighteen(18)months after the completion
of the Work.
I. If any damage, including death, persona( injury or property damage, occurs in
connection with the performance ofthis 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 sha(1 submit a written report to City's I2isk Manager
containing the following information, as applicable: l) name and address of injured
., 11 �
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 dalnage and
whether any City property was involved.
SECTION 9. INDEMNIFICATION AND HOLD HARMLESS
A. Consisten�with California Civil Code§2778, Developer shai(cause the Construction
Con�ract to include provisions that require the Cont7-actor, to the fullest extent
permitted by 1aw, 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 attarney's fees of the City Attorney or legal
counsel retained by City,expert fees, iitigation costs,and investigatiion costs)of every
type and description to which any or all of them may be subjected by reason of, or
resulting from, drrectly or indirectly, the negligence, recklessness, or willful
misconduct of Colltractor, its offeers, empioyees or agents in the performance of the
Work, except when liability arises due to the sole negligence, active neglige�lce or
misconduct of the City.
B. The Coiltractor's obligation to defend, indemnify and hold hartnless sha.1( not be
excused because of the Cont�°actor'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 additian to any other remedy au�thorized by law, the City may
withhold such funds the City reasonably considers necessary for its defense and
indemnity until disposi�ion 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 of the duties required of Developer or Contractor herein.
C. The Contractor's obligation to indemnify,protect,defend,and hold harmless set forth
in this Section applies to all claims and liability re�ardless 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 Construction Contract shali provide that the City shall have the right to approve
or disapprove the legal counsel re�ained by Contractor pursuant to this Section fo
represent City's interests. City shal( be reimbui°sed for all costs and attorney's fees
incurred by City in enforcing the obligations set forth in this Section.
SECTION 10. PREVAILING WAGE LAW COMPLIANCE
A. Pursuant to Seetion 1781 c�f the Labor Code, Developer is advised �hat the work
eontemplated 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 of each job classification may be found by inqui�y with the
� I Z.,
California Department of Industrial Relations. Developer shall comply with all laws
related to the performance af public work including, but not liznited to, the
employment of apprentices pursuant to Section 1777.5 of the Labor Code, work
day/week hours and over�ilne rates pursuant to Sections 1813 and 1$15 of the Labor
Code and the obligation set forth in Sections 1774-1776 ofthe Labor Code in regards
to paynlent of prevailing wages and to provide the City of Redding and Department
of Industrial Relations certified payrolls when required. A certified copy of all
payroll records relative to this project shall be subil�itted to the City of Redding along
with the related invoice. Receipt of certified payroll records is a prerequisite to
receiving payment.
B. No Contractor, sub-contractor, or consultant may be listed on a bid proposal for a
public works project unless registered with the Department of Industrial Relations
pursuantto Labor Code Section 1725.5. No Contractor,sub-contractor, or consultant
may be awarded a contract for public work on a public works project unless registered
with the Department of Industrial Relations pursuant to Labor Code Section 1725.5.
All Contractors, sub-contractors, or consultants must furnish electronic certified
payroll records to the Labor Commissioner. This requirement applies to all public
works projects, whether new or ongoing. Developer is further advised that the work
contemplated herein is subject to compliance manitoring and enforceinent by the
Department of Industrial Relations.
C. Developer shall cause the Ianguage set fort�h herein to be included i�1 the Construction
Contract and contract with the Construction Manager.
� 13 �
IN WITNESS WHEREOF, City and Developer have executed this Reimbursement
Agreement on the days and year set forth below:
CITY OF REDDING,
A Municipal Corporation
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Dated: `r �� ;;, �2023 � �` ` .� _�
By: iVIICHAEL DACQUISTO, MAYOR
ATTEST: APPROVED AS TO FQRM:
BARRY E. DeWALT
City Attorney
dt���n�p� �'� 4.5 +�}@$ !`���/Q �
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�.:��r"" AMELA MIZE, City Clerk By:
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SIERRA PACIFIC LAND & TIMBER
COMPANY
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Dated: ,2023 "�� � �,.B � � �����"���� '�
y: M.D. EMMERS• �
Tax ID No.: ��°�- ��`����_5�'`�
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