HomeMy WebLinkAbout _ 4.11(c)--Acceptance for Trinity Street Sewer Reimbursement Agreement GI �" Y C� F
� � �- ' � ° � � i � CITY OF REDDING
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REPORT TO THE CITY COUNCIL
MEETING DATE: March 3, 2026 FROM: Michael Webb, Public Works
ITEM NO. 4.11(c) Director/Interim Asst. City
Mana�er
***APPROVED BY***
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mwebb@cityofredding.org wtarbox@cityofredding.gov
SUBJECT: 4.11(c)--Project and Agreement Acceptance for the Trinity Street Sewer
Reimbursement Agreement
Recommendation
Accept the project plans, specifications, and construction, of the sewer line associated with the
Trinity Street Sewer Reimbursement Agreement (C-9727) as satisfactorily complete, with a final
cost of$3,053,466.78.
Fiscal Impact
The Trinity Street Sewer Reimbursement Agreement (Agreement) is fully funded by the City of
Redding (City) Wastewater Utility which has sufficient funds appropriated in the approved
Fiscal Year 2022-23 budget for this project. The total agreement's final cost is $3,053,466.78.
Cost
Summar �I�
Item Initial Authorized Increase Amount Final Authorized Actual A�nount
A reement��� $ 1,940 $ 1,260 $ 3,200 $ 2,988
City Con. $
Mana ement 0 $ 100 $ 100 $ 65
City
Manager $
Auth. Funds 0 $ 100 $ 100 $ 0
TOTAL
PROJECT
COSTS $ 1,940 $ 1,460 $ 3,400 $ 3,053
TOTAL
PROJECT
BUDGET $ 1,940 $ 1,460 $ 3,400 $ 3,400
Report to Redding City Council February 26,2026
Re: 4.11(c)--Acceptance for Trinity Street Sewer ReimbursementAgreement Page 2
Notes:
�'�Figures shown in thousands.
���Agreement includes all project development costs, construction contract, consultant
construction management services and project contingency
Alternative Action
The City Council (Council) may choose not to accept the agreement as satisfactorily complete,
and provide alternate direction to staff.
Background
Sierra Pacific Land and Timber Company, has completed all items of work on Trinity Street
Sewer Reimbursement Agreement as of September 13, 2024, which was within the contract time
frame. The project warranty period expired one year from the completion date of September 13,
2024.
On February 7, 2023, Council authorized a reimbursement agreement to Sierra Pacific Land and
Timber Company, for a total authorized amount of$1,940,000. In March 2023, the project was
subsequently advertised for construction and the City received two bids from local contractors.
The low bid was approximately $1,200,000 higher than the engineers estimate that was provided
by the developer's consultant engineer, Sharrah Dunlap Sawyer, Inc. On May 16, 2023, Council
authorized an amendment to the agreement in the amount of $1,260,000 to account for actual
bids received and additionally authorized $100,000 for City construction management and
inspection staf£ The City Manager was authorized to approve additional increases to the
agreement up to $100,000 for a total authorized amount of $3,400,000. Construction of the
improvements was ultimately awarded to the low bidder, Stimpel-Wiebelhaus Associates, of
Redding, CA. The final agreements cost was $2,988,401.72.
As part of the Salt Creek Heights Subdivision Project Phase 2, the developer, Sierra Paci�ic 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
accardance with the conditions of development and Redding Municipal Code. These
improvements will better serve the surrounding City residents and provide necessary sewer
capacity for fiiture planned growth.
The agreement included design, construction and construction management of approximately
925 lineal feet of 14-inch sewer forc� main, 600 lineal feet of 2'7-inch sewer main along Court
Street, Trinity Street, within the YMCA parking lot and under the railroad to Continental Street,
450 linear feet of CIPP lining the existing 24" gravity sewer line, manhole replacement and
rehabilitation.
Report to Redding City Council February 26,2026
Re: 4.11(c)--Acceptance for Trinity Street Sewer ReimbursementAgreement Page 3
Envi�onmental Review
The proposed action is not a project as defined by the California Environmental Quality Act
(CEQA). On February 7, 2023, Council determined that the Trinity Street Sewer Project was
categorically exempt from review under CEQA pursuant to Sections 15301 (Existing Facilities),
15302 (Replacement and Reconstruction), and 15303 (New Construction or Conversion of
Existing Structures). No further action is required.
Council PNio�^ity/City Manager Goals
This agenda item is a routine operational item.
Attachments
Previous Staff Report 020723
Previous Staff Report 051623
Agreement(C-9727)
GI �" Y C� F
� � �- ' � ° � � i � CITY OF REDDING
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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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G�k1�nd,H'ciblic Wc�aks I7qreGt 1/?7/2423 i�}�in,�C"i au � L,'30/2423
caulzland@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
NOTICE CiF EXEMPTION
To: ❑ Office of Planning and Research FROM: City of Redding
1400 Tenth Street, Room 12 i Public Works I)epartment
Sacramento? CA 9S$14 777 Cypress Avenue
Redding; CA 96001
� Shasta County Clerk
County of Shasta
P.O:Box 99Q$8Q; 1643 Market Street
Redding,CA 96099-088Q
Project Title: Trinitv Stre�t Sewer Project J.O.#230$-10
Froject Location—Specific: Trinitv Street and Court Street
Project Lacatian—City. Reddin� Pro;�ect Locatian—County: S�asta
D�scription af Project. In coordination with the Ciiy af Reddin�- Sierra Pacific Industries will construct a wastewater
irnprov�ment t�roiect. A fundin� a�reement wi11 be used ta reimburse tl�e develaper far the Citv's share of costs The
proiect entails th� irtstallatiian remt�val replacement relacation and rehabilitation of sewer main sewer pi�e manhates
water main water valves and tie-ins sidewalk pa�ernent landscape and �re liydrants The project wiil use iack and
bore linin� and auen trench rnetliods The o�en trench and bore pits will be covered at tl�e end af each workdav The
public will be notified prior to canstruction
Nam�ofPublic Agency Approving Project:Citv of Reddin�
Name o�'Persan or Agency Carrying Ont Project: Rvan Bailev,Assistant Public Woi•ks Director
Exernpt Status; (check one)
❑ Ministierral [Section 21080(b)(1}; 15268]
❑ Declared Emergency [Section 21080(b)(3); 15269(a)]
❑ Emergency Pra,�ect[Sectian 2108Q(b)(4); 15269(b)]
❑ Statutory Exeinptions. State code number:
❑ Cornmon Sense Exemption (This project does not fall within an exernpt class,but it can be seen with certainty that there is
no possibility that the activity may have a significant effect on the enuironment(14 CCR 15d61[b][3]).
� Categorical Exemption. State ty�pe and section numbeY: Section 15301. �xistin�;Facilities 15302.Replacernent
or Reconstruction,and 15303.New Construction or Conversion of Existin�Structures
� No exceptions apply tlaat would bar the use of a categorical exemptiQn(PRD 21 d84 and 14 CGR l 5300 2}.
Reasons why pr�ject is exernpt: Class 1 exemptions includ� the rninor alteration of existin� public structures and
facilities. Class 2 exemptions consists of repIacement or reconstruction where the new structure will be located on the
same site and will have substantially t11e same purpose and capacity Class 3 exernptions consist of construction and
location of new small facilities and equipmenf or conversion of existin� structures The existin�wastewater svstem will
be renovated to better meet customer needs and to meet current publ�c safety standards The project wi11 be located on the
same site w111 have the same purpose and capacitv and will result in a ne�li ible axpansion caf use The pro�ect has been
reviewed for sensitive resaurces such as threatened or endan ered species or their habitats sensitive ve�etation
cammunitias, tribal lands or tribal cultural resaurces The proiect has no potential to have a sr�nificant effect on the
environment.
Lead Agency Contact Person:Arnber Ke11ey Telephone; 530.225.4046
If Filecl by Applicant:
1. Attaeh certified documenf of exemptian finding.
2, Has a notice of exemption been filed by the public agency approVing the project? o Yes ❑No
Signature: r � '" Date: ,d�;� i��
Title: Enviranmental Cam liance M ' er
�Signed by Lead Agency I�ate received far filing at OPR
❑ Signed by Applicant
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, the �ity Caur��il of the City of �eddi�g, a �snicip�l Cc�rporatiar�, in th� �tat� a� GaEifc�rni�,
�s �vrrr��r, has on , car�diti�nally awarded t�a �s �rincipal, � C�ar��ra�t to
da arad perf�rm the follovuing vuork ta-vvit:
�s vvill rn�re fully appear ir� said C�ntr�ct, the �errns a�d cc�nditi�r�s �f�aid Cc�r�tract being €ully i�r�arpc�r�ted her�ira by
�his referer�ce; �nd
, und�r the t�rr�s �f the Gontr�ct and pursa��nfi t� �hapter 5 of Titl� 3 of F'�rt 6 �f [7i�risiar� 4 csf the
Galife�rr�i� Civil Cc�d� (cornrr�er�cing with Civil �od� iect@c�r� 9550), �rir�cip�l i� reqtaired to furnish � gaod �rtd suffici�nt
p�yrri�nt bc�nd tc�seca�re p�yrr�er�t caf�h� cl�irn�tss which r�fi�rence i� r��de i� Gieril Cod� �ecti�n 9554;
, , �nae, fhe F'rir�cipal and
� corpar�tic�r� duly �tathcarized �nd adrnitted tt� tran�act bu�in��s �nd i�su� �t�r�fiy bc�r�ds ir� the St��e c�fi Galifcarni�,
h�r�ir��ft�r c�66�d ��r�ty, �r� h�ld and firrnly bcaund aar�tc�the C)wn�r, and ur�tc�aEE p�r�ons ar�nt�ties ent°sfil�d fio �ss�rt�
�lair�r ag�inst a paymer�t bond u�der a�y of th� afor�s�id Givil Gode provi�ions in the per�a6 �urn c�f
�a6Ear� (� } lav�rful rr�orrey of the lJr�ited �t�t�s af Rrneric�,
far th� payrn�r�fi v�oherec�f, vvell and traaly fi� b� mad�, a�ve bi�d a�rselves, our h��irs, e�c�c�ator�, ada�rir�istrators,
s��c�ss�rs �nd ��sigr��,�oinfly ar�d �ever�66y, �irmly by th�s� pr�se�fis.
T' � 11`I 1" 1 �1 "TI I , that if �a6d l�rinc�p�l, h�s ar its heirs, �x�c�atc�rs,
administr�tc�rs, succes�ars ar ���ign�, or s�abcc�ntractor�, sh�ll fail �a pay for �ny rn�terial� ar equiprnent fur�ish�d or
���d ir� perFc�rrr�ar�ce o� fihe �ontr��t, crr fc�r �rty wt�rk or I�bar th�rec�n cafi �ny kind, c�r fc�r a�e�ur��s d�a� �nder the
l�r��rr'pfayment Ir�s�arar�c�;Acfi with respec�to su�h vvc�rk ar�abor, ar fcar any�rr�ount� r�quired tc� be deducted, vvithheld,
ar�d p�id eav�r t�th� Fran�h�s�Tax �oard c�r the Employrn�r�t ��v�lc�prner�t D�partrrren�firc�m th� �+rages af ernplay��s
cafi the Contra�tc�r �nd afl ��abce�r�tractwrs urith respect to s�ach vvc�rk c�r I�bcar, th�n th� �ure��y �h�fl p�y th� �am� in ar�
�rnount r��at exc��dirrg th� ��r� specified �bov�. If suit is bresught upan thi� bc�ndp �ur�ty �half p�y, ir� additi�r� to the
�b�v� �um, �II cost�, exp�r���� �nd f�e�, incl�ding �t��rr�ey's fe��, re��c�r��bly ir�c�rred by �ray p�r�y ir� s�ac��ssfully
enfc�rcing th� �bEigati�n s�c�ar�d hereby, all to be ta�c�d a� co�t� �nd incl�ded in �r�y judgm�nt rendered, �hc��6d #he
ccsr�difiic�n �f this bond b� f�ally perfc�rrr��d, then thi� c�blig�tion �hall becc�me nulE and v�id, o�hervuise it sh�ll be and
r�rnain ir� full fc�r�e ar�d effect, ��d sh�ll bind Gonfira�t�r, �urety, their heirs, �x�cutc�r�, adrnQnistrators, �ucces��rs and
a�sigr�s,jowntly and �e��rally.
It i� hereby �fi�pul�ted and �gre�d th�t thi� band �hall �nure to th� ber�ef�t of all p�rson�, cornpar�ies,
c�rpcar�tic�ns, poli�ical subdivisians, Sfi�t� agencies ar�d cath�r�r�fistses entitled ta assert � cl�irr� ag�in��a p�yrr��nfi bar�d
�nder ar�y c�� th� ��c�res�id Givil Cade provisi�r�s, so as ta give a righ� af �ctic�r� to thern car their ���igns ir� �ny suit
bro�ght upc�n thi� bond. l�h� ��r�fiy, for ��laae r�c�iv�d, her�by s�ipula��s and agre�� th�t nca ch�ng�, exfi�nsi�ar� caf
�ime, alt�r�tiear� e�r �ddifiicrr� to the t�rrns af th� ��r�tr��t e�r tea th� �rork to b� p�rfvrmed thereund�r car to th�
specifiic�fiions �zcc�mpanyir�g fih� s�rr�� shaff en �r�y way �fife�fi its obliga�ion� on this band, �nd it dc��s h�r�by v��ive
ncati�� o� �ny such char�g�, �xt�r�sion, alt�ratic�n ar �dditi�r�. Furfiherr��r�, a�d fior v�lu�bl� �c�r�sid�rafi"sean, ��arefiy
hereby vvaives th� prc�vision�of�alifc�rnia CiviB Cod� �ectior�s 2�19, 2�45, ar�d 2349.
I 1`f F, w� h�v� her�t� ��t o�r ha�ds and s��ls on thi� d�y c�f ,
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�rincipal
City Attorr��y �y:
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F'arr��la Miz�, City�I�rk �Var�e�f�ure��e
By: (�e�E}
Att�arr��y-I r�-Fact
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Exhibit B2
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7'H��T ��R�A�, the �i�y �Qt�rrcil �af th� �ity of R�ddir�g, � �ur�i�ipal �orpcar�fiian, a� C?�nrner, �t it� reg�lar m��tir�g held
or� , ha��ward�d tc�
�� F'rincipal, � contr�ct to do�rrd perfc�rm the follo�nri�g vvc�rk tcs-�it:
a�will rr��are f�al€y�ppear ir� ��id cc�ntr�ct, the t�rrr��and 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 C�rirrcip�l is r�quir�d und�r term�of s�id ccarrtract tca furni�h � bo�d far th�f�ithf�l perfor�n�n�e of said
c�antract;
�� ,���������, W�, ��1�,' �YIC1C9�?c�� c�ila
�� �urety, �r� h�lc! �nd firmly bo�nd unto the C7wner in the��arn af
C�c�fl�r�$
lavvful rric�ney czf the llr�it�d State� of�lm�rica, for the p�ym�n� 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�ss�rs�nd ��sigr��,j�intfy ar�d severally,firrrrly by th��e pr��er�t�.
7'F�� ����ITI�� �F 1`FII� � LI�ATI�t� 1� �ll�Ft, that if said I�ri�eipal, hi� or its h�irs, �xecutor�, adrninisfrators,
succes�ars or a��igns, or subco�tracior�9 sh�ll in all �h�r�gs st�r�d 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 �he ��id cantr�ct 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��r ther�in �pe�ified 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��� the C)�ner, ifi� ofifiicer�, and �g�n�� �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�ull fc�r�e�r�d virtu�.
A� the �ur�ty, for val�ae received, hereby stip�alate� ar�d agr��� th�t no char�ge, ��t�rr�ion c�f time, �It�ratior� or additior� to
the terrrr� of the corrfir�ct c,r fica tF�e wark to be p�rforrn�d fihereunder esr�he speciFicatior�� accorrrpanyir�g the ��rr�e sF��ll in ar�y v���
�ffect its obligatior�� on thi� b�r�d, �nd it doe� hereby waive naatice oF�r�y such char�ge, �xt�nsian of time, aft�ration ar addition to
th�t�rrrr�Qf the ccar�tracfi c�r to t�e work car fic�fihe specific�fiions.
Ifi s�id C�wner sh�ll requ'sre �ny �urfher c�r ofiher bc�r�d far it� pra�ection 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�ure�i�s sati�f�ctory to th� C?vvr�er within 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 of the F'rir�cipal to ccarrrply onri�h ��id requirert�ent„ fihe �vur�er�h�ll hau�fihe right, a�
its�ptie�r�, to t�rmin�t��aid �orrtr�ct with s�id �'rincipaE.
I� Il��l��� h��R��F,_we h�ve heretca�et aur h�r�ds and �e�ls or�this � day of ,
�����t���A�T`� FO� e
F'rin�ipal
�ity�ttorn�y �y:
A1"T`��T°: f�e�11
F'�rr��l� Mize, �ity�I�rk �1�rv�e caf�urety
�y: (�eaf}
,�,ttorney-In-F�ct
2
Exhibit B3
, ,
� � ..
l ��� �"���
� � .
K O ALL EN BY THESE PRESENTS:
THAT E, the undersigned,
as Principal, and
a corporatian 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 C?bligee, 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 heretofore 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 reason 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)
GI �" Y C� F
� � �- ' � ° � � i � 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***
�
�._ s.N,.��
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G�k1�nd,H'ciblic Wc�aks I7qreGt 5,^'3/2423 i�}�in,�C"i au � 41�/2423
caulzland@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.
P�cket Pg. 139 '
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
P�cket Pg. 140
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� TO CITY ATTdRNEY(225-40501&CITY CLERK(225-4439)
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° Agreements(�Bonds d Contracts o Leases a Escrow Instructions
p t3eeds p Securities b Resolutians a Ordinances p Opinions
Date: a2�08/23 From: Stephanie McCoilum
Dept. Name: Utilities Dept. # Phone:
Person most knowledgeable: Ryan Bailey Phone: 224-6030
INSURANCE REQUtREMENTS MET?Prior to signatures, must submit lnsurance Transmittal Form to Risk, have
certificate uploaded by vendor and approved by Risk. lf not, your contracts wi!l be held in the Clerk's Office. For
help contact Risk Liability- ����r������ ��'����r� .�� (530) 225-4385.
DESCRIBE ATTACHED DOCLTMENTfSI
Document Titpe: Agreement to Provide Reimbursement for the Construction of Sewer Line
Outside Party(iesj: Sierra Pacific Land and Timber Company
Project(What/Where/Why?): �Creek Heights Subdivision
COUNCIL APPROVAL REQUIRED? No❑Yes� IF YES,DATE OF MEETING: 2���23 Agenda Item#: 4.11(d)
Was contract/agreement the result of an RFP or Bid?No f Yes❑ Bid Schedule#or RFP#:
IS�:t}T�T �T' �L�`�"�I�°TC�°1' ��A �F"T�2�? �r�����
REQUEST FOR ATTORNEY SERVICES
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(Attorney approval now mandatory-RMC§4.20.120.A)
�`Note: Signed originals will be forwarded ta City Clerk far necessary City signatures,insurance& ,
other requirement verification,and processing.
❑ Mailing/distributionInstructions: ���`t���
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❑ Memo or additional info is attached.
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" `= ' 777 Cypress Avenue, Redding, CA 96001
- "`� -`' PO BOX 496071, Redding, CA 96049-6071
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C A L I F ��� C? R �1 � I �� �ity�fir�cEdingaorg
PAMELA MIZE,CITY C�ERK
SHARLEtvE TIPTOtv,ASSISTANT CITY CLERK
530.225.4447
530.225.4463 FAX
Apri126, 2023
Sierra Pacific Land & Timber Company
ATTN: M.D. Emmerson
19794 Riverside Ave.
Anderson, CA 96007
RE: Agreement to Provide Reimbursement-G9727
Dear M.D. Emmerson:
Enclosed please find the above referenced fully executed Agreement to Provide
Reimbursement for the Construction of Sewer Line by and between the City of Redding and
Sierra Pacific Land & Timber Company relative to the Trinity Street sewer line in the Sa1t Creek
Heights Subdivision.
If you have any questions regarding this agreement, or if we can be of assistance, please
contact the Office of the City Clerk at (530) 225-4439.
Sincerely,
a"�t� � �,�°R``= ��
�"
Kristen McGee
Management Analyst
Enclosure
cc: Stephanie McColll�m
Ryan Bailey
Ellen Grannis
AGREEMENT TO PI20VIDE
REIMBURSEMENT FOR
THE CONSTRUC�'ION OF SEWER LINE
THIS REIMBURSEMENT AGREEMENT is made and entered into by and ben�veen SIERRA
PACIFIC LAND AND TIMBER COMPANY; hereina�fter t�eferred to as "Developer" and th�
CITY OF REDDING, a Munieipal Carporation, hereinafter referred to as"City":
WNEREAS, the City installs and maintains sewer lines within the incorporated areas of
the City; and
WHEREAS, the Developer is constructing a developnlent project known as Salt Creek
Heights Subdivisiort;and
WHERBAS, the Developer was conditiolled (AMND-2017-00160) to upsize the Trinity
Street sewer line downstream of Manholes J6-41, J6-28, and J6-32 (the"Project"}; and
WHEREAS, the conditions state the I�eveloper tnay request reimbursement or credit from
the City Wastewater Utility for these improvements; and
WHEREAS, City Council Policy 1502 authorizes deveioper participation agreements
adherzng to the guidance of the policy; and
WHEREAS, Per the Conditions of Approval, the Developer has requested that the City
reimburse costs far the design and constn�etion 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 project is$1,940,004(the"Estinlated Project
Cost").
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NOW,TFIEREFORE,IT IS AGREED by and between the parties hereto as foltows:
SEC'I'ION l. I)EVELOPER
The names, addresses, and descriptions of the person or persons herein collectively referred to
as "Developer" are as follows:
Name Address
M.D. Emmerson 19794 Riverside Ave.
Sierra Pacific Land &Timber Company Anderson, CA 96007
SECTION 2. SCOPE OF WQRK
A. Developer 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 Paci�ic
Railroad (UPRR), along Trinily Street to Continental Street al�d a(1 other associated
work (collectively, the"Work").
B. The Work shall be performed strict(y in accordance with development plans that have
been prepared by Sharrah Dunlap Sawyer, Inc., civil engineers ("Designer") at the
direction of the Developer based on the City of Redding Construction S�andards and
reviewed and approved by UPRR and the Ci�y's Public Works Engineering Division
(the "Final Plans"), incorporated herein by reference. Developn�ent Plans shall
include drawings, specifications, bid item breakdown list with unit prices and all
other pertil�ent information and exhibits regarding the project. The Work shall be
subject to inspection by and approval of the City's Public Works Engineering
Division for confortnatice with the Final Plans and sound construction practices. If
the Construction/Inspection Management Division of the City's Public Works
Engineering Division, in its judgll�ent, determines that any Work is not in substantial
conformity with the Final Plans and City of Redding Construction Standards
(CORCS) or are not otherwise in substantial conformity with sound building
practices, the City shall have the right to order a carrection to the Work by written
notice to the Developer. All correction costs due to non-confornlity will not be
reimbursed by the City and shall be borne by the Developer. No I��aterial changes
sha11 be made to the Final Plans or specifications wi�hout the City's prior written
consent.
SECTION 3. PROJECT CQSTS
A. Estinlated Proiect Cost: The estimated project cost is approxi�nately one million nine
hundred forty thousand doilars ($1,940,000}. Costs include design, construction, and
construction Inazlagement. It �is acknowledged that the estimated cast is based upon
prelinlinary cost estin2ates, and is not the result of competitive bids, and, therefore, is
subject to change. Costs shall be reitnbursed to Developer per Section 6 below.
�2�
B. Total Project Cost: Developer agrees to deliver the Project to�he City for a Tota(
Project Cost which shall include the Actual Construction Cost, as defined in Section
3.0 herein. The Tota] Project Cost sha11 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 include, as hereinafter
provided, Improvement Costs, costs of Change Orders, and Other Cost Increases
defined below("Actual Construction Costs").
1. Improvement Costs: The improvement costs include, but shall not be lilnited
to, costs of preparing the Project budget, construction, bonds, all other fees
and charges (e.g., permit fees, inspection fees, etc.} associated with actual
construction of the Project, engineering, surveying, staking, permitting costs,
and construction management costs.
2. Change Orders: A "Change Order" is a written order, approved by the City,
fr�m any of Deve(oper's authorized representative (Developer's Agent}to the
con�ractor perforn�ing the work authorizing a change in the work to be
perfonned. Cl�ange Orders may be needed where changes in the Project are
made necessary if(1) unfores�en 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 the
Finai 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 Chan�e Order to Developer's Agent as
identified below.
a. Approval of Change Orders: A "Change Order" is a written order from
Developer and City to the contractor performing the work authoriaing
a change in the work to be performed. Developer's Agent sha11 notify
City's representative, of the need for a Change Order and City's
representative shall either approve or reject said Change Order within
ten (10)working days of receiving Developer's Agent's wi•itten notice.
City staff may approve Change Orders. For purposes of notification
with regard to Change Orders, the City's represent:ative sha11 mean the
person responsible for overseeing design and construction, and will be
established at the pre-construction meeting.
b. Markup of Chan�e Orders: Work by Contractor. The following
percentages shall be added to the Contractor's costs and shalt
constitute full payment for all overhead and profit.
Overhead costs shal! include, but not l�e limited to such items as
project superintendent, project managers, field and home office
expenses.
1) Labor 35%
2) Material 15%
_3 �
3) Equipment Rental & Other Items l 5%
4) Subcontractor Work 10% (this markup may be applied a maximum
of one time to the extra work bi11)
Work by Subcontractor. When extra work is performed by a
subcontractor, the following percentages shall be added tc�tl�e
subcontractor's costs and shall consYitute full payment
for alI overhead and profit.
Overhead costs shall include, but not be limited to such items as
project superintendence, project nlanagers, field and home office
expenses.
1) Labor 35%
2) Material 15%
3) Equipment Rental & Other Items 15%
4) Second-Tier Subcontractor 10%(this markup roay be appiied a
maximum of one time to the extra work bill)
D. Solicitation of Bids: Developer shall solicit sealed bids for the constructiot� of the
Work in accordance with Public Contract Code (PCC) Section 22037 as follows:
1. The notice inviting forinal bids shall state the time a11d place for the receiving
and opening of seated bids and distinctly describe the project. The notice shall
be published at least fourteen (14) calendar days before the date of opening
the bids in a newspaper of general circulation, printed and published in the
jurisdiction ofthe public agency; or, ifthere 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 public
agency as have been designated by ordinance or regutation of the public
agency as places for posting of its notices. The notice inviting for►nal 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 sha11 be mailed at least 30 calendar days befor-e 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
representative(s) with a copy of the tabulation of bid resu(ts. Deve(oper shall
award contract(s) for the construction of the Project to the qualified and
responsible contractor(s) submitting the lowest responsible and responsive
bid(s), as mutually agreed by Developer and City's authorized
representative(s). Developer shail be the awarding body of the contract for the
construction of the Work, and City sha11 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 Section 3 above,the increase in the Estimated Construction Cost must be
.� q.�
approved by City prior to awarding the contract.
SECTION 4. TERM AND TERMINATION
A. Developer shall cause the Contractor(as defined below)to commence the Work by the
issuance of a Notice to Proceed de(iver•ed after execution of the Construction Contract
and the Developer estimates that the Wol•k shall be completed no iater than September
1, 2023.
B. If Developer fails to perform or comply with any of its obligations under this
Agreement, as and when required,which continues for a period of thirty(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 sueh thirty(30)day
period, and Developer shall have commenced to cure such failure within such thirty
(30) day period and tllereafte�-diligently and expeditiously proceeds to cure the same,
such thirty (30) day period shall be extended for an additional period of time as is
reasonably necessaty for the Developer in the eXercise of due dilige7lce to cure such
failure), then City shall have the right to terminate this Contract effective im�nediately
after the passage of applicable notice and cure periods. Upon such termination, the
Developer shali be entitled to receive reimbursement for Work completed in
eonformance with the Final Plans and City of Redding Construction Standards,but not
with respect to any Wark not eXecuted by the Contractor.
C. City may �erminate this Contract without cause on thirty (30} calendar days' written
notice. In the event of termination by the City without cause prior to co�nmencement
of construction, the Developer shali be entitled to receive reimburseme�nt for costs
incurred by the Deveioper as a direet resuit of such termination. In case of termination
far the City's convenience after commencement of construction, the Developer shall
be elltitied to receive payment for Work con�pleted, and costs reasonably incurred by
Developer as a direct result of such termination (including, without limitatioil, aily
termination fee or cost due Contractor and/or any subcontractor or matet�ialman), 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 ailocated by the City Council, City Tnay terminate this Agreenlent 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 shali not be
entitled to a remedy of acceleration of payments due over the term of this Agree�nent
but shali be entitled to reimbursement as set forth in Section 4.0 above. The Parties
acknowledge and agree that the power to terminate described herein is z•equired by
Article 16, Section 18, of the California Constitution, and that cons�itutional provision
supersedes any law, rule, regulation or statute which conflicts wit11 the provisio�ls of
this Section.
E. In the event that City gives notice oftermination, Developer shal(promptly assign and
�5�
deliver to City any and all finished and unfinished reports, data, studies, photographs,
charts or other non-legally�rivileged work product prepared by or at the direction of
Developer pursuant to this Contract tc�the extent assignable by the Developer. To the
extent permitted by law, City shall have full owi�ership, including, but not liinited to,
intellectual property rights,and contro[ ofall such finished and unfinished reports,data,
studies, photographs, eharts or other work product. City agrees and acknowledges that
any work product transferred pursuant to this Section 4.F are transferred "AS-IS"
wi�hout any representation or warranty by Developer and Developer shall have no
liability to City or any other party with respeet to the use of any such work product
after the tennination of this Contract, and City shall,to the fullest extent permitted by
law, indemnify, protect, defend and hold harmless, Developer, its ���embers, officers,
employees, agents and representatives, and each and every one of them, from and
against all actions, damages, costs, liability, clailns, losses, petialties and eXpenses
(including, but not limited to, reasonable attorneys' fees, expert fees, litigation costs,
and investigative costs) of every type and description to which any or all of them may
be subjected, which in any way arise out of or relate to the use of the work product.
F. Subject to Section 4. E, in no event shall the termination or expiration of this
Contract be construed as a waiver of any right to seek remedies in law, equity or
otherwise for a Party's failure to perform each obligation required by this Contract.
SECTION 5. CQNSTRUCTION
A. The Developer shall cause the Work to be performed by a contractor ("Contractor")
licensed in the Sta�e of California for the Work perforrned and shall require a
construction eontract ("Construction Contract") the fortn and co»tent of which must
be reviewed and approved by the City's Public Works Engineering Division prior to
execution by the Deve(oper. The Construction Contract and construction
management will 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 Industrial Relations
per Section 10 of this Agreelnent
• lndustry standard perforn�ance bond and payment bond with each not (ess than
100 percent of the eontract work and a maintenance bond in an amount not less
thatl 50 percent of the contract work. The maintenance bond shal l eatend l2
consecutive months beyond the Notice of Conlpletion date indicating City
acceptance of the Work. The farm of the required bonds shall be substantially
in the form attached hereto as Exhibit`Bl, B2, and B3".
• The Developer shall contract with a qualified entity ("Const�-uction 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 interinittent dependent on the work being
performed. The Construction Manager shall be entitled to a fee, which fee sl�all
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
agreement. The qualifications ofthe Construction Manager shall include atl
���
projects in progress or completed over the last five (5)years that are comparable
to the project, designated personnel and their rotes on submitted projects and
iuclude agency references with names, addresses, and current phone numbers.
The responsible personnel of the Construction Manager shall also be identi�ed
and at minimtiun shall include the Projec� manager, Resident Engineer, Inspector
and other key project staffwho will be direct(y involved in the project.
B. The Developer shall keep an accurate record of the actual cost of the Project in
accordance with generally accepted accout�ting procedures. Developer 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, a11 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 indet�nnities in favor of
the City as set forth in Section 8 hereof. The Contractor shal( have all licenses,
permits, qualifications and approvals of any nature whatsoever that are legally
required for Contractor to carry out the Work.
D. Attention is directed to the provisions in Sections 10262 and 10262.5 of the Public
Contract 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 deIiver to the City as-
built construction drawings in a format acceptable to the City.
F. The Developer shalt have the sole responsibility for obtaining and maintaining
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 tenlporary construction easenlents. The Developer shali be
responsible for any costs associated with obtaining access,agreements afld easements
and verifying the validity of existing easements
SECTION 6. DEVELOPERS REQUES'I' FOR REIMBURSEMENT
A. City shall reimburse Developer for the actual costs of the Work, in aceordanee with
Section 3.B,and in an amount not to exceed the Approved Budget described in
Section 6.� below.
B. The Developer shall submit to the City a proposed budget for cot���letion of the Work
(which sha11 include the Designer's fee, the Constructio�l Manager's fee, the
Construction Manager's general eonditions, and the proposed Constructiol� Contract
amount) far review and approvat, which approval shall not be unreasonable withheld,
conditioned, or delayed. The City shall, within five (5) business days, approve the
proposed budget, or provide to the Developer a stateinent of changes required to be
�.��
made in order for the proposed budge�to be approved. If the proposed budget exceeds
the Estimated Project Cost, Council approval shall be required. The Developer shall
not cause construction to commence uniess the proposed budget has been approved 6y
the City.Once approved by the City,the proposed budget as modified by challge orders
is referred to herein as the"Approved Budget."
C. Developer shall submit funding requests as frequently as monthly to the City for Work
completed to the date of the funding request. All funding requests shall Tnclude 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 all other labor and materials excluding a 5 percent retention payable
at time of final payment.The funding request shall also include certified payroll records
in accordance with Section 10.A and conditional or unconditional rel�ases of liens
(through the date covered by the iminediately precedi�lg funding request) from (a) the
Confractar and (b) ail otiher potentiai lien claimants (e.g., subcontractors, laborers,
materialmen) performing labor or se1•vices or supplying materials in connection with
the Work.
Within ten (10} business days after receipt of a funding request from Developer, the
City Public Works Engineering Division shall approve tl�e complete funding request or
only a portion ofthe funding reauest 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 rec�uired above. If the City
Public Works Engineering Division disapproves any amount requested by Developer
in a disbursement request,the City shall prolnptly notify Developer of the disapproved
amount and the reason for disapproval. If any item in a disbursement request is
disapproved, the representatives of Developer and the City shall meet proznptly 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 tl�irty (30) calendar days of receipt.
SECTION 7. MISCELLANEOUS FROVISIONS
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 a(1
obligations as provided in this Agreement; and that the execution, performance
� and delivery of this Agreement by said signatories has been fully authorized by
all requisite actions on the part ofthe respective parties to this Agreement.
S. This Agreement has the same fo1•ce 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.
C. Developer shall, during the entire term of this Agreement, be construed to be an
independent con�ractor and nothing in �his Agreement is intended, nor shall it be
construed, to create an employer/employee relationship, association,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 Agreement.
Any and all �axes imposed on Developer's income, impased or assessed by reason
of this Agreement or its performance, including but not limited to use taxes, shall
be paid �by Developer. Developer shalt be responsible for any taxes oz-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 Systeln or be
eligible for any other City benefit.
D. No provision of this Agreement is intended to, or shaii be for the benefit of, or
construed to crea�e rights in, or grant reinedies to, any person or entity not a party
hereto.
E. Developer shalt cause the Contractor to maintain accounts and records, including
personnel, property and financiat records, adequa�e to identify and account for all
costs pertaining to the Wark. 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 Parties hereto hereby
irrevocably waives any and all right to trial by jury in any action, proceeding,claim
or counterclaim, whether in contract or tort, at law or in equ'rty, arising out of ar in
any way related to this Agreement or the transactions contempla�ed hereby. Eaeh
Party further waives any right to coilsolidate any action which a jury trial has been
waived with any other action in which a jury triai cannot be or has not been waived.
SECTION 8. INSITR.�NCE
The obligations to the City required of Developer in Section �re(ating to iilsurance may be satisfied
by Developer's authorized subcontractor if the obtigations set forth in Section 8 are met by the
Developer's subcontractor. Only in such event shail Deveroper 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 Required 1�1ot Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers' Compensation and E7nployers' Liability X
Professional Liability(Errors and O�nissions) X
(Place an"x"in the appropriate box)
B. Coverage shall be at least as broad a�:
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1. Insurance Services Office form number CG-0001, Commercial General
Liability Insurance, in an amount not iess than$],000,000 per occurrence and
$2,000,000 general aggregate for bodily injury, personal injury and property
damage;
2. Insurance Services Office form number CA-0001 (Ed. 1/87), Conlprehensive
Automobile Liability Insural�ce, which provides for total limits of not less
than �1,000,000 combined single li�nits per accident applicable to all owned,
non-owiled and hired vehic(es;
3. Statutory Workers' Compensation required by the Labor Code of the State of
California and Employers' Liability Insurance in an amount not less than
$I,Q00,000 per occurrence. Both the Workers' Campensation and
Employers' Liability policies shalt contain the insurer's waiver of subrogation
in favor of City, its elected officials, officers, employees, agents and
volun�eers;
4. Professional Liability (Errors and Omissions) Insurance, appropriate to
Developer's profession, against loss due to error or omission or malpractice
in an amount not less than $1,000,000.
5. Course of Cons�ruction Insurance providing coverage for all "risks"of loss in
the amount of the co�npleted project value.
6. Contractor Pollution Liability, in the amount of$1,000,000,to include but not
limited to coverage for bodily injury, property damage and eleanup arising
from pollution conditions created by �he contraetor or eneountered 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 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 shail contain or be endorsed to contain the follawing
provisions:
l. City, its elected officia[s,officers,employees,and agents are to be covered as
additional insured as respects (iability 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.
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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 e(ected officials, officers,
en�ployees, agents and volun�eers, 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� claiin 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 stiate that
coverage shall not be canceled excep� 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 1i�l�its 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. Deve(oper shall cause the Contractor to furnish City with
certificates of insurance and originat endorsements effecting the coverages required
by this clause. Certificates and endorsements shall be furnished to: Risk Managen�ent
Department, City of Redding, 777 Cypress Avenue, Redding, CA 96001. The
certificates and endorsemellts for each insurance policy are to be signed by a person
authorized by the insurer to bind coverage on its behaif. All endorsements are to be
received and approved by the City's Risk Manager prior to the commence�nent of'the
Work.City may withhold payments to Developer if adequate certificates of insurance
and endorsements required have not been provided, or not been provided in a timely
manner.
G. The requirements as to the types and limits of insurance coverage to be maintained
by Contractor as required by Section 8 of this Contract, and any approval of said
insurance by City, are not intended to and will not in any manner lirnit or qualify the
liabilities and obliga�ions otherwise assumed by Contractor pursuant to the
Construction Contract, including, without limitation, provisions concerning
indeznnification.
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 far a period of eighteen(18}montl�s after the completion
of the Work.
L If any damage, including death, personal injury or property damage, occurs in
connection with�he 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: ]) name and address of injured
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or deceased person(s); 2) natne 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 9. INDEMNIFICATION AND HOLI� HARMLESS
A. Consistent with California Civil Code §2778, Developer shall cause�h�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, reasonabie attorney's fees of the City Attorney or legal
eounsel retained by City,expert fees,litigation costs,and investigation casts)ofevery
type and description to which any or all of them may be subjected by reason of, or
resulting from, directly or indirectiy, the negligence, recklessness, or willful
misconduct of Contractor, its offieers, einployees or agents in the perform�nce 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 sha.l( not be
excused because of the Conh•actor's inability to evaluate liability. The Constnlction
Contract shall provide that Contraetor shall respond within thirty (30) calendar days
to the�ender of any elaim 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
tenc�er of defense and indemnity in writing delivered by City within thirty (30)
calendar days, in addition to any other remedy autharized 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 clai�n or until the Contractor accepts
or rejects the tender of defense in writing delivered to the City, whichever oce�ars
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 Seetion applies to all claims and liability regardless of whether any insurance
polieies are applicabie. The policy limits of said insurance polieies do not act as a
limitation upon the anlount af indemni�cation to be provided by Contractor.
D. The Construction Contract shall provide that the City shall have the right to approve
or disapprove the legal counsel retained by Colltractar pursuant to this Section to
represent City's interests. City shall 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 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
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Caiifornia Department of Industrial Relations. Develaper shali conlply with all laws
related to the performance of public work including, but not li�nited to, the
enlployment of apprelltices pursuant to Section 17�7.5 of the Labor Code, work
day/week hours and overtilne rates pursuant to Sections 1$13 and 1815 of the Labor
Codeandthe obligation set forth in Sections 1774-1776 ofthe 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 ta 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 warks project unless registered with the Department of Industrial Relations
pursuant to Labor Code Section 1725.5. No Contractor,sub-contractor, or consultant
may be awarded a contract for public work on a public works project unless registered
with the Department of Industrial Relations pursuant to Labor Code Section 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
conYeinplated herein is subject to compliance monitoring and enforcement by the
Department of Industrial Relations.
C. Developer shall cause the language set forth herein to be included in the Construction
Contract and contract with the Construction Manager.
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IN WITNESS WHEREOF, C�ity 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: 7 �` .,� ,2023 __ ;;F 1 ��_�___
By: MIC�IAEL DACQUISTO, MAYOR
ATTEST: AP�ROVED AS TO FORM:
BARRY E. DeWALT
City Attorney
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��,,���'"� AMELA MIZE, City Clerk By:
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SIERRA PACIFIC LAND & TIMBER
COMPANY
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Dated: , 2023 � �'�� �� r ��"
`�By: 1VI.D. EMMERSO "
Tax ID No.: ���-�' ��"�����'�
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