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Home My WebLink About _ 4.11(c)--Approve Reimbursement Agreement with Ridgeline Builders � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: April 15,2025 FROM: Michael Webb, Public Works ITEIVI NO. 4.11(c) Director ***APPROVED BY*** � �c a� � �bEi� 'c�r�Cs I7�reetcsr �,t�i2t}`?� r5�' �p�i��,C�i �r� �, �,�'�,{'2{�?. mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 4.11(c)--Approve Reimbursement Agreement with Ridgeline Builders Recommendation Authorize and approve the following: (1) Approve an Agreement to Provide Reimbursement with Ridgeline Builders Group Inc., a Nevada Corporation, for design and construction of a sanitary sewer mainline to City of Redding construction standards for a not-to-exceed price of$93,300; and (2) Find that the project is categorically exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 - Existing Facilities and Section 15303 -New Construction or Conversion of Small Structures. Fiscal Impact The City of Redding's (City) Wastewater Utility Division has sufficient funds available in the approved Fiscal Year 2024-25 budget for the Agreement to Provide Reimbursement (Agreement). Alternative Action The City Council (Couneil) could choose not to approve the agreement and provide an alternative direction to staff. Background/Analysis Two lots at 525 and 575 North Boulder Drive were recent]y purchased with the intent of constructing two single-family residences. The City's sanitary sewer service is not readily accessible for these parcels to develop. The owner is requesting to extend the City's sewer mainline to serve these parcels. Currently, there is a substandard sewer line, which is not owned by the City that serves two existing homes on this street. This existing line does not meet the Redding Municipal Code (RMC) 14.16.310. The owner's request would eliminate the substandard pipe and replace it with a public mainline that would meet City construction standards and provide adequate sewer service for each of the parcels, including the existing homes. Report to Redding City Council Apri110,2025 Re: 4.12(c)--Approve Agreement for Reimbursement with Ridgeline Buila'ers Page 2 City staff recommends the construction of this to City standards in order to serve the parcels and to provide sewer service connections to other parcels on the street where City sewer connections are not available in accordance with RMC 14.16.370. The City will reimburse the developer for the construction of this portion of the sewer line. The developer will also construct additional sewer infrastructure to serve their development that will not be reimbursed by the City. The new sewer line wi]1 include proper public service easements for future maintenance. The cost of the agreement includes engineering design and construction of the new sewer 1ine. Environmental Review Staff has reviewed the project and determined that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 - Existing Facilities and Section 15303 -New Construction or Conversion of Small Structures. Class 1 exemptions include minor alteration of existing public facilities and equipment. Class 3 exemptions include the construction of new small facilities or structures, and installation of new equipment. The project will result in negligible or no expansion of use, and a limited amount of new equipment and structures will be constructed. The project has been reviewed for sensitive resources and will not have a significant effeet on biological or cultural resources such as threatened or endangered species or their habitats, sensitive vegetation communities, tribal lands, or tribal cultural resources. The project has no potential to have a significant effect on the enviromnent. Council PYiority/City ManageY Goals • This agenda item is a routine operational item. Attachments ^Location Map Agreement NOE Wastewater Reimbursement Agreement ��"".,„ lf �, "„t l ��4 � 1�l �i� t�� `'�,,.�.. I�s^`.'"„�. � ��,'"'� \ �` '"'"w ...�` . � �� ,. ��,�...�-""" � � �� 4,��.../�� `�`�„�"-�^,., ..-''w. �`+,„,/ ,,.,�"'"' t �'` � � � �"'-��., `r. � �� ,� �} "�s,, f� ,+"� � �'�� , w� .�.w-,..`""-�' �� ".. �. "�� . . � r' „w w.� �� PRt�JECT � � r� `�;-� �~�o _.-�� -.� P�I y,., "`\..�/` 7 �, � �.� � ,�Zt�}, . ^' ,....�- ... 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Q _.m,.�--'"�� ,�- �� . � . �-_ �.e� .� F .,.-" �...�,,.--�,_ y ,""- y �,,,..�-.,� .. .... .--"'�,,,,.. v S `� . ... �,....-- ..' � �r ,.� µ-..^.�".. k .-.,... „..��-" � ,... � � �,...-.-,.. tt� � . � � }} # � .:�f � ,�•�`"� .��'""" .„�-�-�.,a..��'"'� ....,,�..--....r-""�q.� ,.'"��`t^^ ""o�.,., �.-�.-`"' �.�-' �m_.�.� ,. � � � ��. m � .�� , ' � .... . , ,✓ ...,. ��,..�-(' ..��--.�..�i, �� „... II.LTO,..,�R,�� h �.� �. : `��--�-~...�� ' � ` � � �.� , ,� .-� o �� " r� �,�- .m._.._.___.�- �. ., �,f - � �,��.�w � �.�- ..., ��...�- � � - � , � ��.,:� , ``,: � � � �� _ � ,� > : � � .�..�..�.�.� _ � : �1� � ,� .�.� �r��—�� 1 r- Ff' �o� REO� CITY OF REDDING EXHIBIT C � �� ;`�-�_ `. � PUB�IC WORKS 525 & 575 N. BOULDER DRIVE � ;,-a��.�.P DEPARTMENT " ' LOCATION MAP ��ifioa� AGREEMENT TO PROVIDE REIMBURSEMENT FOR THE CONSTRUCTION OF WASTEWATER PIPE AND MANHOLE FOR CITY ACCEPTANCE THIS REIMBURSEMENT AGREEMENT is made and entered into by and between Ridgeline Builders Group Inc., a Nevada Corporation; hereinafter referred to as "Developer" and the CITY OF REDDING, a Municipal Corparation, hereinafter referred to as "City": WHEREAS, the City installs and maintains the wastewater collection system within the incorporated areas of the City; and WHEREAS,the Developer is replacing a private sewer main for public use; and WHEREAS,the Developer has requested that the City reimburse construction costs for the sewer main, designed to meet capacity requirements for the surrounding parcels inside the incorporated area of the City; and WHEREAS,Redding Municipal Code Section 1416.370 generally provides that,the City Council may authorize contribution to the construction of oversized systems for the circumstances of serving areas not yet served; and WHEREAS, the City has estimated that the cost to design and construct the sewer main for the proposed project is $93,300.00 (the "Estimated Project Cost"), defined herein as the cost of full build-out set forth in Exhibit A, attached and incorporated herein. NOW,THEREFORE,IT IS AGREED by and between the parties hereto as follows: SECTION 1. DEVELOPER The names, addresses, and descriptions of the person or persons herein collectively referred to as "Developer" are as follows: Name Address Brian Walker(CEO) 18631 Lloyd Lane, Suite 202 Ridgeline Builders Group Inc. Anderson, CA 96007 SECTION 2. INSTALLATION OF FACILITIES A. Developer agrees to construct a sanitary sewer main to serve North Boulder Drive to city construction standards (hereinafter referred to as the "Project"} in order to accommodate wastewater flow for the development and adjacent properties. The location of the Project; 501 Twin View Boulevard (APN 116-040-002), owned by the Boulder Creek RV Resort; is shown on the location map as Exhibit C attached hereto and made a part hereof. B. The Work shall be performed strictly in accordance with development plans that have been prepared by Whitson Engineering, civil engineers ("Designer") at the direction of the Developer based on the City of Redding Construction Standards and reviewed and approved by the City's Public Warks Engineering Division (the "Final Plans") incorporated herein by reference. The Work shall be subject to inspection by and approval of the City's Public Works Engineering Division for conformance with the Final Plans and sound construction practices. If the Construction/Inspection Management Division of the City's Public Works Engineering Division, in its judgment, determines that any Work is not in substantial conformity with the Final Plans and City of Redding Construction Standards or are not otherwise in substantial conformity with sound building practices, the City shall have the right to order a correction to the Work by written notice to the Developer, with said work to be accomplished at the sole cost and expense of Developer. All changes made to the Final Plans must be approved by the City with prior written consent. SECTION 3. DEVELOPERS REQUEST FOR REIMBURSEMENT A. City shall reimburse Developer for the actual costs of the design, materials and labor at prevailing wage rate in an amount not to exceed ninety-three thousand three hundred dollars ($93,300.00), as represented by the totals of Exhibits A and B incorporated herein by this reference. An additional seven thousand six hundred dollars ($7,600.00), approximately ten percent(10%) of the construction estimate, is included as a construction contingency. B. The Developer agrees that, promptly upon completion of construction of Project and acceptance of the same by the City, Developer will, at its own expense, furnish to the City's Public Works Engineering Division a reasonably detailed statement of the actual. construction costs including paid invoices not to exceed the total amount referenced in part A of this section. Developer assumes all risk of, and City shall not be obligated to contribute towards, any expense incurred by Developer to complete the work that is in excess of the amount set forth herein. C. In the event that Developer does not submit paid invoices to the City within one (1) year of acceptance of completed construction, City shall have no obligation to make payment far Developer's work. D. If City does not reimburse Developer within ninety (90) days of the reimbursement request City shall pay Developer interest in the amount of five percent (5%) annually on the outstanding balance compounded on a monthly basis. SECTION 4. MISCELLANEOUS PROVISIONS A. Each of the undersigned signatories hereby represents and warrants that they are authorized to execute this Agreement on behalf of the respective parties to this Agreement; that they have full right, power and lawful authority to undertake all obligations as provided in this Agreement; and that the execution, performance and delivery of this Agreement by said signatories has been fully authorized by all �2� requisite actions on the part of the respective parties to this Agreement. B. This Agreement has the same force and effect as any deed covenant running with the land and shall benefit and bind all owners of the property present and future, and their heirs, successors and assigns. G The City may terminate this Reimbursement Agreement with cause upon ten (10) calendar days'notice to Developer. D. Developer represents and warrants to City that it has all licenses,perrnits,qualifications and approvals of any nature whatsoever that are legally required for Consultant to practice its profession. Developer represents and warrants to City that Developer shall, at its sole cost and expense,keep in effect or obtain at all times during the term of this Agreement any licenses,permits and approvals that are legally required for Developer to practice its profession. E. Developer shall, during the entire term of this Agreement, be construed to be an independent contractor and nothing in this Agreement is intended, nor shall it be construed, to create an employer/employee relationship, association, joint venture relationship, trust or partnership or to allow City to exercise discretion or control over the professional manner in which Developer performs under this Agreement. Any and all taxes imposed on Developer's income, imposed or assessed by reason of this Agreement or its performance, including but not limited to sales or use taxes, shall be paid by Developer. Developer shall be responsible for any taxes or penalties assessed by reason of any claims that Developer is an employee of City. Developer shall not be eligible for coverage under City's workers'compensation insurance plan,benefits under the Public Employee Retirement System or be eligible for any other City benefit. F. No provision of this Agreement is intended to,or shall be for the benefit of,or construed to create rights in, or grant remedies to, any person or entity not a party hereto. G. Developer shall maintain accounts and records, including personnel, property and financial records, adequate to identify and account for all costs pertaining to this agreement and such other records as may be deemed necessary by City to assure proper accounting for all project funds. These records shall be made available for audit purposes to any authorized representative of City. Developer shall retain such records for three (3) years af'ter the expiration of this Agreement, unless prior permission to destroy them is granted by City. H. Each of the Parties hereto hereby irrevocably waives any and all right to trial by jury in any action,proceeding, claim or counterclaim, whether in con�ract 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 or has not been waived. SECTION 5. INSURANCE The obligations to the City required of Developer in Section 8 relating to insurance may be satisfied by Developer's authorized subcontractor if the obligations set forth in Section 8 are met by the Developer's subcontractor. Only in such event shall Developer be relieved of the obligations set �3� forth in Section 1. A. Developer shall maintain the following noted insurance during the duration of the Contract: Coverage Required Not Required Commercial General Liability X Comprehensive Vehicle Liability X Workers' Compensation and Employers' Liability X Professional Liability(Errors and Omissions) X (Place an"x"in the appropriate box) B. Coverage shall be at least as broad as: l. 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 Of�ce form number CA-0001 (Ed. 1/87), Comprehensive Automobile Liability Insurance, which provides for total limits of not less than $1,000,000 combined single limits per accident applicable to all owned, non-owned and hired vehicles; 3. Statutory Workers' Compensation required by the Labor Code of the State of California and Employers' Liability Insurance in an amount not less than $1,000,000 per occurrence. Both the Workers' Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents and volunteers; 4. Professional Liability (Errors and On�issions) Insurance, appropriate to Developer's profession, against loss d�ue to error or omission or malpractice in an amount not less than $1,000,000. 5. The City does not accept insurance certificates or endorsements with the wording "but only in the event of a named insured's sole negligence" or any other verbiage limiting the insured's insurance responsibility. C. Any deductibles or self-insured retentions must be declared to and approved by City, which approval shall not be unreasonably withheld, conditioned or delayed. D. The General Liability shall contain or be endorsed to contain the following provisions: 1. City,its elected officials, officers, employees, and agents are to be covered as �4� additional insured as respects liability arising out of work or operations performed by or on behalf of Developer; premises owned, leased or used by Developer; or automobiles owned, leased, hired or borrowed by Developer. The coverage shall contain no special limitations on the scope of protection afforded to City, its elected officials, officers, employees, agents and volunteers. 2. The insurance coverage of Developer shall be primary insurance as respects City, its elected officials, officers, employees, agents and volunteers. Any insurance or self-insurance maintained by City, its elected officials, officers, employees,agents and volunteers,shall be in excess of Developer's insurance and shall not contribute with it. 3. Coverage shall state that the insurance of Developer shall apply separately to each insured against whom claim is made or suit is brought, except with. respect to the limits of the insurer's liability. 4. Each insurance policy required by this Contract shall be endorsed to state that coverage shall not be canceled except after thirty (30) calendar days' prior written notice has been given to City. In addition, Developer agrees that it shall not reduce its coverage or limits on any such policy except after thirty (30) calendar days' prior written notice has been given to the insureds. E. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A-VII. F. Developer shall cause the Contractor to designate the City of Redding as a Certi�cate Holder of the insurance. Developer shall cause the Contractor to furnish City with certificates of insurance and original endorsements effecting the coverages required by this clause. Certificates and endorsements shall be furnished to:Risk Management Department, City of Redding, 777 Cypress Avenue, Redding, CA 96001. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City's Risk Manager prior to the commencement of the Wark. City may withhold payments to Developer if adequate certificates of insurance and endorsements required have not been provided, or not been provided in a timely manner. G. The requirements as to the types and limits of insurance coverage to be maintained by Contractor as required by Section 8 of this Contract, and any approval of said insurance by City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by Contractor pursuant to the Construction Contract, including, without limitation, provisions 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 shall keep said insurance in effect for a period of eighteen(18)months af'ter the completion �5� of the Work. I. If any damage, including death, personal injury or property damage, occurs in connection with the performance of this Contract,Developer shall immediately notify City's Risk Manager by telephone at(530}225-4068. No later than three(3)calendar days after the event, Developer shall submit a written report to City's Risk Manager containing the following information, as applicable: 1) name and address of injured or deceased person(s); 2) name and address of witnesses; 3) name and address of Developer's insurance company; and 4) a detailed description of the damage and whether any City property was involved. SECTION 6. INDEMNIFICATION AND HOLD HARMLESS A. Consistent with California Civil Code § 2'7'78,Developer shall cause the Construction Contract to include provisions that require the Contractor, to the fullest extent permitted by law, indemnify protect, defend and hold harmless, City, its elected officials, officers, employees, and agents, and each and every one of them, from and against all actions, damages, costs, liability, claims, losses, penalties and expenses (including,but not limited to,reasonable attorney's fees of the City Attorney or legal counsel retained by City,expert fees,litigation costs,and investigation costs)of every type and description to which any or all of them may be subjected by reason of, or resulting from, directly or indirectly, the negligence, recklessness, or willful misconduct of Contractor, its officers, employees or agents in the performance of the Work, except when liability arises due to the sole negligence, active negligence or misconduct of the City. B. The Contractor's obligation to defend, indemnify and hold harmless shall not be excused because of the Contractar's inability to evaluate liability. The Construction Contract shall provide that Contractor shall respond within thirty(30) calendar days to the tender of any claim for defense and indemnity by the City, unless this time has been extended in writing by the City. If the Contractor fails to accept or reject a tender of defense and indemnity in writing delivered by City within thirty (30) calendar days, in addition to any other remedy authorized by law, the City may withhold such funds the City reasonably considers necessary for its defense and indemnity until disposition has been made of the claim or until the Contractor accepts or rejects the tender of defense in writing delivered to the City, whichever occurs first. This subdivision shall not be construed to excuse the prompt and continued performance of the duties required of Developer or Contractor herein. C. The obligation to indemnify, protect, defend, and hold harrnless set forth in this Section applies to all claims and liability regardless of whether any insurance policies are applicable. The policy limits of said insurance policies do not act as a limitation upon the amount of indemnification to be provided by Contractor. D. The City shall have the right to approve or disapprove the legal counsel retained by Contractor pursuant to this Section to represent City's interests. City shall be reimbursed for all costs and attorney's fees incurred by City in enforcing the obligations set forth in this Section. �6� SECTION 7. PREVAILING WAGE LAW COMPLIANCE A. Pursuant to Section 1781 of the Labor Code, Developer is advised that the work contemplated in this contract related to construction is subject to the payment of prevailing wages and all other requirements of the Prevailing Wage Law. The prevailing wage of each job classification may be found by inquiry with the California Department of Industrial Relations. Developer shall comply with all laws related to the performance of public work including, but not limited to, the employment of apprentices pursuant to Section 1777.5 of the Labor Code, work day/week hours and overtime rates pursuant to Sections 1813 and 1815 of the Labor Code and the obligation set forth in Sections 1774-1776 of the Labor Code in regards to payment 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 submitted to the City of Redding along with the related invoices. Receipt of certified payroll records is a prerequisite to receiving payment. B. No Contractor, sub-contractor, or consultant may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5. No Contractor, sub-contractor,or consultant may be awarded a contract for public work on a public works proj ect 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 monitoring and enforcement by the Department of Ind�ustrial Relations. �� 1� I'I'IVES� E F, ��ty and I�evelc�per have executed this Reimbursement Agreemen�on th� days and year set forth belc�w� �I'I'� F II�G, A u�i�igal�orpora�ia� �ted: ,`2025 y: JAC NS, �'s� ATT�s�r. � �� s�° � . � sTz�� . cU �rr� c��a�t��y � � �r�E T�rT �, crty �r�� T: ,, . �,. � �t�a: :�'� � � ��,��zs �� °�� ,,,s�° ;,� � ,�.d. �. ��n��.: ��"'��,�,.;� �� nj��,- � � �� X�< � �.�n, UTICE C}F EXEMPTI�I�T TO: C�1 Of�ice of Planning and Research FROM; Cily of Redding 1400 Tenth �treet;,Room 12I Public Works Department Sacramento,CA 95$14 '777 Cypress Avenue Redding; CA 96001 0 Shasta County�lerk County af Shasta P.C7. Box 990880, 1643 Nlarket 5ireet Redding, CA 96099-0$8Q Project Title: Wastewater Infrastructure Reimbursement A�reement Project Location—Specific: 501 Twin View Boulevard and Narth Boulder Drive Project Location—City: l�eddin�P`r�ject I,ocation—Coanty: Shasta _ Description of Project: In partnership with the City of Reddin� Ridgeline Builders Group Inc will construct a sanitarx sewer main to serve lift station to serve both planned develapment and existin�residents Work will take place on bc�th private properiy and vvithin the City right of way. Name of Public Agency Agproving Praject: City of Reddin� 1Varne of�`erson or Agency Carrying tJut Proj�et: Ryan Bailey;Assistant Public Works Directar E�;empt Status: (check one) ❑ Ministerial [Section 21080(b){1}; 15268] � I3eclared Emergency [Section 21480(b){3}, 15269(a)� ❑ Emergency Project[Section 21�84(b}(4); 1S2G9(b)] ❑ Statutory Exemptions: �tate cade numbers Q Common Sense Exemp€ion�This project does not fal�within an exempt class;but it can be seen with certa�nty that there is no passibility that the activity may have a significant effeet on the env'rronment{14 CCR 15061[b][3]): � Categorical Exemption. State type and section nuinber: Section 15�01:Existin�Facilities and 153�3,New C�nstruction ar Conversion of Existin�Structures � No exGeptions apply that would bar the use c�f a categorical exemption(PRD 21�84 and 14 CCR 15300.2), Reasons why project is exernpt: Class 1 exemptions include minar alteration of existing�ublic facilities and�quipment. Class 3 exemptions include the construction of new small faeitities ar structures and installation af new equipment The praject will result in ne�li�ble or no expansion c�f use and a limited amc�unt of new equipment and structui•es will be constructed. The project has been reviewed far sensitive resources and will not have a si�nificant effect on biolo icg al or culttitral resatxrces such as thz-eatened ar endan erg ed species or their habitats sensitive ve�etation comanuni�ies tribal lantls,ar tribal cultural resources. The praject ha�no potential to have a si�nificant effect on the enviranment. Lead Agency Contact Persan: Amber KelleY 'Telephone: 53a.225.4046 If Filed b;y Applicant: 1. Attach certified document c�f exemptic�n�nding. 2. Has a notice of exemptian been filed by the pubiic agency appraving the prajeet? ❑Yss�No Signaturec .,�� T1ate: �".��e� Title: Environmental Com�Iianc��ana er �� Signed by Lead Agency Date received for�ling at t7PR: ❑ Signed bY Applicant ��C�,L�;i��C��.�`��,�. �'�,�p�i�