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HomeMy WebLinkAboutContracts & Agreements_27-1984_CCv0001.pdf CITY OF REDLANDS PALMETTO AND DOMESTIC AVENUES SEWER EXTENSION TRUNK LINE OFF-TRACT SEWER AGREEMENT 1. RECITALS . 1. 01. The parties to this Agreement , who hereby acknowledge either ownership or control in the later described properties , are the following: KENT LAND COMPANY; FRIEDMAN HOMES, INC. ; ROSSMORE INVESTMENTS and FMK INC. ; REDLANDS 27 LIMITED; REDLANDS TEN INVESTMENT; TKI , INC. ; and PAUL FRIEDMAN (hereinafter collectively referred to as "Property Owners") and the CITY OF REDLANDS , CALIFORNIA (hereinafter referred to as "City") . 1. 02 . Property Owners wish to construct a sewer trunk line for ultimate dedication to the City and inclusion in the City ' s sewer system, to provide sewer service to their respective properties . Property Owners anticipate constructing the sewer line north of , and roughly parallel to, Pioneer Avenue from the City ' s existing sewer system installed at Alabama Street east to Judson Street . 1. 03 . The City acknowledges the value of a sewer trunk line at such location to provide sewer service to accommodate development currently proposed, and further acknowledges the value of oversizing the sewer trunk line to provide capacity for sewer service to future anticipated development . The City has expressed its willingness to accept dedication of the sewer trunk line for inclusion in the City's sewer system, upon condition that said construc- tion complies with City standards , and upon further condition that said sewer trunk line is constructed by the Property Owners with sufficient oversizing to accommodate sewer service to future anticipated development . 1. 04 . The City has further expressed its willingness to advance the sum of $100, 000 for construction of the sewer trunk line and to pay, in accordance with City ordinances in effect , for the incremental cost of oversizing said sewer trunk line once said line has been constructed, dedicated to and accepted by the City, with the City and specified Property Owners to be reimbursed for their advances for oversizing and off-site construction as benefitted properties subsequently develop. 1. 05 . It is the desire of all parties to have the Property Owners proceed with the construction and installation of a product which will satisfy City standards and be acceptable to the City at the time it is offered for dedication and inclusion in the City ' s sewer system. The purpose of this Agreement is to (a) set forth the rights , duties and obligations of the Property Owners relative to the design of the project , the acquisition of necessary -2- easements , and actual construction of a sewer trunk line which will be acceptable for dedication to the City once completed, and (b) to provide certain assurances by the City that the sewer trunk line will be accepted for dedication if constructed in accordance with City requirements , that City will advance the sum of $100,000 for construction and will pay the incremental cost of oversizing to service future anticipated development as required by City ordinances in effect at the date of this Agreement , and that the Property Owners will receive their allocated share of reimbursements as benefitted properties subsequently develop. 2. DUTIES OF PROPERTY OWNERS . 2 . 01. The Property Owners , and each of them, agree to cooperate with each other in the construction of a sewer trunk line north of, and roughly parallel to, Pioneer Avenue within existing or proposed rights-of-way for Palmetto and Domestic Avenues to extend the City ' s existing sewer system from Alabama Street east to Judson Street . The sewer trunk line will be constructed by the Property Owners in anticipation of offering said line to City for incorporation into City' s sewer system for the provision of City sewer service to their respective properties . 2. 02 . The Property Owners agree that Friedman Homes , Inc. , shall act as construction manager on behalf of all Property Owners . In such capacity, Friedman Homes , -3- Inc . , shall arrange for the engineering design, plans and specifications for the project , which shall be approved by the City Engineer prior to commencement of construction, will endeavor to secure all necessary easements and rights- of-way in a form which will be acceptable for ultimate dedication to the City, and will oversee actual construction of the sewer trunk line and ultimate dedication to the City. All facilities shall be constructed and installed in full compliance with approved plans and specifications . The contractor shall ensure completion of construction by posting a Performance Bond which names the Property Owners and the City as obligees . The Property Owners shall reimburse Friedman Homes , Inc . , for actual costs incurred in performing services as construction manager, in proportion to each Property Owner' s obligation for total project costs as set forth in this Agreement . 2 . 03 . The Property Owners further agree to pay their allocated share of the total cost of the project , including cost of easement acquisition, permit fees , engi- neering, trunk main construction, legal fees , incidental costs and administration of the project . These anticipated costs plus an additional 10% for contingencies shall be deposited into an interest bearing construction account from which Friedman Homes , Inc. , as construction manager, shall be authorized to withdraw such sums as may be necessary to pay for the costs directly related to the project . Friedman -4- Homes , Inc. , will maintain a separate accounting which will be available for audit by the Property Owners and the City. If additional contributions to the account are needed to complete the project , Friedman Homes , Inc. , will advise all other Property Owners of the necessity for additional contri- butions , and the Property Owners hereby agree to immediately contribute or authorize the necessary amounts in proportion to their obligation for total project costs as set forth herein. Upon completion of the project and acceptance of the completed sewer trunk line by City , any excess monies remaining in the account , following payment of escrow fees and other project related expenses , will be returned to the Property Owners in the same proportion as their contributions to said account . 2 . 04 . The allocated contributions by the Property Owners to the construction account , and financial obligations for funding the total project costs shall be determined as follows : (a) In-Tract Sewer Portion: Any portion of the sewer trunk line which is located within or abutting property owned or controlled by any of the Property Owners who are a party to this Agree- ment shall be considered In-Tract . The costs attributable to the In-Tract portions of the sewer trunk line extending from Alabama Street east to Judson Street shall be shared by the Property -5- Owners in proportion to the number of lineal feet of sewer main located within or abutting on the property owned or controlled by each respective Property Owner. (b) Off-Tract Sewer Portion: All portions of the sewer trunk line which are not located within or abutting any of the properties owned or controlled by the Property Owners shall be consid- ered Off-Tract . The costs attributable to the Off-Tract portions of the sewer trunk line, includ- ing the cost of Off-Tract easement acquisition, extending from Alabama Street east to Judson Street shall be shared by Kent Land Company, Friedman Homes , Inc. , Rossmore Investments and FMK Inc. , Redlands 27 Limited, and Paul Friedman in proportion to the total acreage of the property owned or controlled by each of these Property Owners which will be benefitted and served by the sewer trunk line ; provided, however, that the total cost to Rossmore Investments and FMK Inc. , for In-Tract and Off-Tract facilities shall not exceed the sum of $100 ,000, and Friedman Homes shall pay the difference between the $100,000 limit and the remainder of Off-Tract costs other- wise attributable to Rossmore Investments and FMK Inc. -6- (c) Non-developer owners : Robert E. Mills , Lester H. Noreen, and Perry and Eleanor Heaverin own property which will benefit from the facili- ties to be constructed, and wish to contribute their proportionate share of expenses attributable to their properties as set forth in this Agreement without being parties to this Agreement . There- fore, they have arranged separately to pay their estimated proportionate share of the costs and expenses to Friedman Homes , Inc. The parties herein agree that Friedman Homes , Inc. , shall be responsible for all obligations pertaining to these properties pursuant to this agreement , and that the City shall treat Robert E. Mills , Lester H. Noreen, and Perry and Eleanor Heaverin as Property Owners for purposes of benefits afforded pursuant to this Agreement . The properties subject to this subparagraph (c) are identified on Exhibit "A" attached hereto. 2 . 05 . The attached Exhibit A presents a preliminary estimated cost breakdown for the Palmetto and Domestic Avenue sewer trunk line extension. Indicated are the various Property, Owners ' respective acreages owned or controlled for purposes of sharing in the Off-Tract costs and their respective crossing lengths for purposes of sharing in the In-Tract costs . It is hereby acknowledged by the -7- Property Owners that these properties indicated are, in fact , owned or controlled by the parties and that they will be benefitted from this Agreement . Further, it is also understood and acknowledged that the resultant total net costs indicated are approximate and for purposes of illustration only. Friedman Homes , Inc. , will solicit proposals from contractors to perform the work, and based upon the contract price and other anticipated costs each Property Owner will deposit into a construction account , in advance , his share of estimated project costs plus 10% for contingencies as provided in Paragraph 2 . 03 herein. The actual and final costs together with the allocation of same as hereinabove described will be determined by the actual contracts , invoices , purchase orders , etc . , incurred and with the allocations reviewed and approved for accuracy and fairness by the City . 2 . 06 . Upon completion of the sewer trunk line, the Property Owners will deliver to the City a recorded Notice of Completion and evidence acceptable to the City that all labor and materials furnished upon the project have been fully paid for. The Property Owners will also convey to the City as-built drawings of the installed trunk line , together with clear title to all easements and other property interests pertaining to the sewer trunk line, in a form acceptable to the City, and the installed facilities themselves . -8- 2 .07 . The Property Owners guarantee the material and workmanship supplied in constructing the sewer trunk line and appurtenant facilities , and agree to replace all materials and pay for all installation costs made neces- sary by defects in material or workmanship that become evident within one (1) year after the date of conveyance to the City. The Property Owners also agree to defend the City and hold it harmless from any claims of any kind which may arise from damage due to said defects . 3. DUTIES OF CITY. 3 .01. City agrees to review the Property Owners ' engineering design, plans and specifications prior to commencement of construction to determine compliance with the City requirements , to cooperate with the Property Owners in the acquisition of all governmental permits and easements from property owners , and to provide inspection of construc- tion to assure suitability for ultimate dedication of the sewer trunk line to the City . 3 . 02 . City further agrees to make City staff and the City Attorney available to the Property Owners as needed for completion of the project , upon condition that the City Attorney shall continue to represent City in the event of any dispute, and upon the further condition that Developers will pay for all attorney ' s fees incurred for legal work performed in relation to the project . -9- 3 . 03 . In acknowledgment that the project is not a public works project of the City, but is rather a private project , the City will not be a party to the contract for construction. However, the City agrees to advance the previously described X100 ,000 toward the cost of construc- tion upon execution of the construction contract and a performance bond naming the City as obligee, to accept dedication and conveyance of the completed sewer trunk line and necessary easements if said line and easements comply with City requirements , to reimburse the Property Owners for the incremental cost of oversizing said line as provided by City rules and regulations , and to reimburse specified Property Owners for their contributions to construction of Off-Tract portions of the sewer trunk line as hereinafter set forth. (a) Oversizipg. The cost of oversizing pursuant to current City ordinance is determined to be 1. 3 times the difference between the cost of materials needed to provide capacity for the property which will connect to the sewer trunk line extension, as determined by City' s Engineer, and the cost of material actually installed to provide additional capacity beyond that required to service the property which will connect to the sewer trunk line extension, as determined by City' s Engineer. City estimates at this time said payment by the City will be approximately $281,890. To demonstrate good faith, the City will place $281,890 in a separate City account pending comple- tion of the project and acceptance by the City. Upon completion and acceptance by the City, the City will pay each Property Owner his proportional share of the reimbursement for oversizing. (b) Off-Tract Contributions . For a period of 15 years following completion of the work and conveyance to the City, the City will reimburse the previously specified Property Owners in propor- tion to their contributions to construction of Off-Tract portions of the sewer trunk line exten- sion from fees collected by the City for connection to such Off-Tract portions . Fees for subsequent connections by non-participating property owners to Off-Tract portions shall be based upon front footage and upon acreage within a designated area of benefit as determined by the City Council , and will be calculated and adjusted each year to reimburse the designated Property Owners for their respective contributions plus a percentage return equal to the percentage return earned by the City on its investments during the previous year as reported by the City Treasurer. Each year for 15 years the City shall reimburse each specified - 11- Property Owner his pro rata share of fees collected pursuant to this paragraph upon receipt of written request . This agreement shall be conditional upon action by the City Council to impose connection fees within a designated area of benefit as set forth herein. 3 .04 . The Property Owners acknowledge that the City has already paid for the installation of a sleeve beneath State Route 30 to accommodate the sewer trunk line extension and that the City agrees herein to place $100,000 into a construction account upon execution of the construc- tion contract and a performance bond naming the City as obligee. It is therefore agreed that fees collected by the City for connection to Off-Tract portions of the sewer trunk line extension pursuant to Paragraph 3 .03 (b) will be applied first to reimburse the City for its contributions to con- struction, including installation of the sleeve but not including oversizing, and thereafter applied to reimbursement of specified Property Owners as set forth in Paragraph 3 .03(b) . 3 . 05 It is understood that each of the Property Owners , their successors and assigns , are forever exempted from the fees described in Paragraph 3 .03(b) of this Agreement upon development of their respective proper- ties and connection to In-Tract facilities . - 12- 4. ENFORCEMENT. 4. 01 . In the event that any party to this Agreement shall fail to perform its duties as set forth herein, and legal action is commenced to compel enforcement or obtain damages , the party or parties that fail to perform their part of the Agreement hereby agree to pay any and all costs involved therein, including a reasonable attorney' s fee . 5 . SUCCESSORS . 5 . 01. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties herein, and each of them. PROPEly Y CrWNF,,kS,, 7- KEN IiAND'' COM Dated: B FRIEDMANH S , INC. Dated: J By: ROSSMOREN"VSTMENTS A" F ' INC. Dated: By -13- REDLANDS 27 LIMITED Dated: By : REDLANDS TEN INVESTMENT Dated: A By: TKI , INC. Dated: 2-111 '� B y : PAUL FRI, N r Dated: By: t CITY CITY OF REDLANDS A Dated: December 18, 1984 By: Mayor of the City of Redlands , California ATTEST: City C erk of tl /C- ty of Redly ds , Calif�nia 14_ 5 EXHIBIT "A" Cid of Redlands Palmetto Domestic Avenue Sewer 'Truck Line Extension East of Alabama Street to Judson Street., approximately 15,600 feet through a service area approximately 750 acres. Total Estimated Cast of Sewer Line: 15,600 x $46.54jft. grass before reimbb. for oversizi.ng $726,000 Less Participation Property Owners Net Crossing Costs - In-Tract Facilities Property Owner Properties Acreage Lenath Net Cost Kent Tr. 9979 18.31 636 $ 15,220 PHI Tr. 9828 2.8.71 716 17,150 Redlands 27 167-071-8, 9, 27.76 946 22,540 10 & 11 Redlands Ten 167-081-11 8.20 .310 7,420 Mills & Noreen 167-081-5 & 6 19.47 666 15,940 TK.I 167-081-9 9.77 352 8,430 Paul Friedman 167-081-3 9.77 344 8,230 Heaverin 167-081-4 9.77 336 8,040 Rossmore Invest- 292-071-10 & 35 78.32 2504 59,930 ments (RI) & FMK, 167-031-2, 4 & 16 Inc. Properties 167-061-4 167-071-4, 5 & 17 167-041-13 Totals 200.08 6810 $163,000 (163,000) Less: City Oversizing of Total Line 15,600 x 18.07 (281,890) City Contribution for Construction (100,000) Remaining Cost to be Shared by Developers for {off- $181,110 Tract Portion of Sewer Line EXHIBIT "A" City of Redlands Palmetto & Domestic Avenue Sewer Truck Line Extension East of Alabama Street to Judson Street, approximately 15,600 feet through a service area approximately 750 acres. Total Estimated Cost of Sewer eine: 15,600 x $46.54jft. dross before reimb. for oversizing $726,{}00 Less Participation Property Owners Net Crossing Costs - In-Tract Facilities Property Owner Properties Acreage Length Net Cost Kent fir. 9979 28.31 636 $ 15,220 FHI Tr. 9828 18.71 716 17,150 Redlands 27 167-071-8, 9, 27.76 946 22,640 10 & 11 Redlands men 167-081-11 8.20 310 7,420 Mills & Noreen 167-081-5 & 6 19.47 666 15,940 TKI 167-081-9 9.77 352 8,430 Paul Friedman 167-081-3 9.77 344 8,230 Heaverin 167-081-4 9.77 336 8,040 Rossmore Invest- 292-071-10 & 35 78.32 2504 59,930 ments (RI) & FMK, 167-031-2, 4 & 16 Inc. Properties 167-061-4 167-071-4, 5 & 17 167-041-13 Totals 200.08 6810 $163,000 (163,000) Less: City Oversizing of Total Line 15,600 x 18.07 (281,890) City Contribution for Construction (100,000) Remaining Cost to be Shared. by Developers for Off- $181,110 Tract Portion of Surer Line EXHIBIT "A" Allocation of Remaininc Costs Prooerty Owner Acreage Percentage Net Cost Kent Tr. 9979 18.31 12.0% $ 21,730 FHI Tr. 9828 18.71 12.2 22,100 FHI, (RI & FMX 52,660 share) [78.32] [51.2] RI & FMK (less 40,070 FHI share) Redlands 27 27.76 18.2 32,960 Paul Friedman 9.77 6.4 11,590 Totals 152.87 100.0% $181,110 Recap of Sewer Line Participants Prooertv Owner In Tract Off Tract Total Kent 15,220 21,730 36,950 FRI 17,150 22,100 39,250 FHI (RI & FMK - 52,660 52,660 share) Paul Friedman 8,230 11,590 19,820 RI & FMK (less 59,930 40,070 100,000 FHI share) Redlands 27 22,640 32,960 55,600 Redlands Ten 7,420 - 7,420 Mills & Noreen 15,940 - 15,940 TKI 8,430 - 8,430 Heaverin 8,040 - 8,040 Sub-Total Property Owners 1244j110 City - Oversizing $281,890 381,890 Contribution $100,000 Total $726,000 -2- 5/17/85 r,off DED IN OFFICIAL F : C : RECORDING REQUESTED BY 1986 FEB —3 AM 11. 02 Redlands City Engineer SAN BERNPRDINCI AND WHEN RECORDED RETURN ToCO., CALIF. ,z City Clerk ° City of Redlands ,,, ... P. C. . Box 280 Redlands , California 92373 FEE ;IVY c ) LAT E3 10 GRANT OF EASEMENTS ?­ ewer Line ) TROJAN GROVES , a California general partnership ( "Grantor" ) , for a valuable consideration, the value, sufficiency and receipt of which is hereby acknowledged, does hereby grant to the City of Redlands. , a municipal corporation duly organized if, accordance with the laws of the State of California ( "Grantee" ) , the real property in the County of San Bernardino, State of California , described as follows : 1 . PARCEL" I/SEWER EASEMENT. A non-exclusive easement for the construction and placement of sanitary sewer facilities , pipelines and right-of-way purposes , including the maintenance, repair and use of said facilities and pipelines , and ingress and egress over that certan ten ( 10 ) foot strip of land more particularly= described in Exhibit "A" attached hereto and CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed to Cit of Redlands dated September 18, 1985 fi from Trojan Groves, a California eneral artnershi to the City of Redlands, a governmental agency, sdhereby ac cepted zed offand the Grantee consents to recordation thereofy its r. Dated: January. 29, 1986 Cit Manager, City of Redlands d r , m• ea w RECORDING REQUESTE ..,. Redlands City Engineer 86 406 D WHEN RECORDED RETURN TO: RECORDEDIN OFFICIAL. RECORD: City Clerk City of Redlands FE 1586 FEB -3 Aid 11' 0 P. 0. Box 280 VY Q I > Redlands, CA 92373 SAN B ERN AR D N0 CO,. CALIF. GRANT OF EASEMENT SAM PERRICONE and LOUIS ROMOFF, doing business as P t R Ranch Company; ROBERT J. INGTON: THOMAS EADI GTON and LINDA J. EADINGTON; WALTER G. HOWALD; RAYMOND KOSI and GWEN KOSI; FMK, INC. , a California corporation; ROSMORE INVESTMENTS, a California corporation; REDLANDS 27, Limited, a California limited partnership. FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, do hereby grant to City of Redlands, a municipal corporation duly organized in accordance with the laws of the State of California, the real property in the County of Sari Bernardino, State of California, described as follows: An easement for sanitary sewer facilities, pipelines and right-of-way purposes, including the construction, maintenance, repair and use of said facilities and pipelines, and ingress and egress, more particularly described as follows: PARCEL 1 - SEWLR EASEMENT :that portion of the South one-half of the Northwest one-quarter and the North one-half of the Southwest one-quarter of Section 15, and that portion of the South one-half of the Forth one-half, and the. North one-half of the South one- li if of Section 16, Township 1 South, Mange 3 West, S.B.M. , lying witlrin a strip of land along the following described line: the widths of said strip of land being 8.00 feet dnd 10.00 feet as designated hereinafter; Commencing at the center of said Section 15; Thence S. OVOU'35""L. along the Nortlr-South center section line of said Section 15, alaao being the centerline of Orange Street , a distance of 9. 93 poet to tlxc point of beginning of the centerline of said 10.00 foot strip of land; Thence S=89°59125"W. , a distance of 70.00 feet; "Thence N.89*56'58"W. , a distance of 875,18. feet; 'thence Westerly on a curve concave Northerly, leaving a radius of 200.00 feet , through an angle of 06°46'12", an arc length of 23. 63 feet; Thence N.83°10"46"W. , a distance of 30.57 feet to the termination of the cent.er- line of' said 10.00 foot strip of land also being the point of beginning of all 8.00 foot strip of land, being 5.00 feet Northerly and 3.00 .feet Southerly of the following described line;