HomeMy WebLinkAbout1502 - Developer Participation AgreementsCITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT
DEVELOPER PARTICIPATION AGREEMENTS
RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE
PAGE
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.
POLICY
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.
Developer 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
DEVELOPER PARTICIPATION AGREEMENTS
RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE
PAGE
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