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HomeMy WebLinkAbout8 Development Agreement for Union Mills Roadenda Item # To: Board of Directors From: Neil Kaufman Date: October 05, 2016 Subject: Approval of a Development Agreement with Mr. Ed Svendsen for the Union Mills Road Water Pipeline 1. WHY THIS MATTER IS BEFORE THE BOARD Per District Code Section 6.04.030, approval by the Board of Directors is required for any development agreement where the total value of on -site improvements being installed by the applicant to be conveyed to the District for ownership, operation and maintenance exceeds $400,000, 2. HISTORY When a developer proposes to construct a new project, a development agreement is necessary when there are facilities that will be constructed by the developer and then conveyed to the District for ownership, operation and maintenance. The development agreement is essentially a contract between a developer and the District. It describes the responsibilities of each party with respect to a particular project. Separate development agreements are created for the Electric Department and the Water Department. Items addressed in a development agreement typically include: • Costs and fees • Dedication of easements where necessary • Dedication of facilities constructed by the developer • Insurance • Indemnification • Project acceptance • Warranty The development agreement will normally reference the approved drawings for a project and the District's construction standards. The development agreement process typically takes the following steps: 1) Initial discussions between the developer and the District regarding project feasibility 2) Development agreement application 3) Review and revision of project plans (this may involve multiple rounds of review & revision) 4) Preparation of development agreement 5) Signing of development agreement and payment of costs and fees 6) Project construction 7) Project acceptance and administrative closeout 3. NEW INFORMATION The Piping Rock Equestrian Center is owned by Mr. Ed Svendsen. It is located on the north side of Interstate 80 and east of Overland Trail in close proximity to the CHIP Inspection Station and the Department of Agriculture Inspection Station. The property is currently served by a private well and is not connected to the District's water system. The property is served by the District's Electric Department. Mr. Svendsen will be constructing a residential subdivision adjacent to the equestrian center. In order to obtain permits for this subdivision, fire hydrants connected to the District's water distribution system are required. Mr. Svendsen is planning to construct a new 8 inch water pipeline from the intersection of Overland Trail and Fairway Drive to the equestrian center. This pipeline will be about 5,600 feet in length and the construction cost will exceed $400,000. The planned route of the pipeline is shown on Figure 1. The CHP Inspection Station and the Department of Agriculture Inspection Station are also served by private wells. The well at the CHP Inspection Station failed in July 2015. Since that time, water has been delivered to the inspection station by potable water trucks that draw water from the District's system. The new water pipeline constructed by Mr. Svendsen will include points of connection for both inspection stations. It is expected that that the CHP Inspection Station will connect to the pipeline upon its completion. Mr. Svendsen intends to begin construction this Fall, with final completion of the pipeline in the Summer of 2017. The development agreement with Mr. Svendsen includes a reimbursement clause such that if and when the CHP Inspection Station connects to the pipeline, the State of California will be required to reimburse Mr. Svendsen for 50 percent of the construction cost for the pipeline. Representatives with the State of California have been made aware of this requirement. The well at the Department of Agriculture Inspection Station is not experiencing any problems and the Department of Agriculture may or may not connect in the future. If the Department of Agriculture does connect to the pipeline, the State of California will make additional reimbursement to Mr. Svendsen towards construction of the pipeline. It is expected that the electric system improvements associated with the new subdivision will not exceed $400,000 and will therefore not require Board approval. Per District Code Section 6.04.030, approval by the Board of Directors is required for any development agreement where the total value of on -site improvements being installed by the applicant to be conveyed to the District for ownership, operation and maintenance exceeds $400,0000 4. FISCAL IMPACT There is no direct fiscal impact to the District associated with this item. The developer will be responsible to reimburse the District for all costs associated with design, engineering, construction inspection and administration of the project. 5. RECOMMENDATION Approve the development agreement and authorize the Board President to execute the agreement between Mr. Ed Svendsen and the District for the Union Mills Road water pipeline. Michael D. Holley General Manager / Water Utility Manager WATER DEVELOPMENT AGREEMENT BETWEEN THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT AND ED SVENDSEN AND PIPING ROCK EQUESTRIAN CENTER UNION MILLS ROAD WATER LINE This Agreement is entered into between the TRUCKEE DONNER PUBLIC UTILITY DISTRICT, a local public agency of the State of California, hereafter referred to as "the District," and ED SVENDSEN AND PIPING ROCK EQUESTRIAN CENTER, hereafter referred to as "Developer," with respect to the following facts: RECITALS A. Developer is the owner of the project located within Nevada County, California, on which Developer intends to install an "84ch water line between the Old Greenwood Pump House and the Piping Rock Equestrian Center", hereafter referred to as the "Project." B. Developer intends to construct a complete water distribution system for the Project for domestic and fire protection use, landscape irrigation use, including pipes, valves, service laterals, and related equipment, in accordance with the approved plans and specifications. Such system shall hereafter be referred to as the "water distribution system." C. The water distribution system is a necessary part of the Project, and Developer has requested that the District accept the system by including it wn the District's existing integrated systems. Developer has further requested that, upon completion, the District thereafter own, operate, maintain, repair, and replace the water distribution system as necessary. If the total value of the projects on -site improvements being installed by the Developer to be conveyed to the District for ownership, operation and maintenance exceeds $400,000, the Development Agreement will be brought to District's Board of Directors for review. The total value will be calculated by the engineer of record. D. The District is willing to accept the water distribution system providing it is properly constructed in accordance with the approved plans, specifications and terms of this agreement. E. Complete plans and specifications for the construction of the water distribution system has been prepared in accordance with the District's Rules and Regulations and with the requirements and specifications as hereafter set forth. Copies of the approved plans and specifications are on file in the District's Water Department. F. Developer has selected contractors for construction of the water portion of this Project. The names of the contracting firms, contact persons, mailing addresses, telephone numbers, California Contractor license, insurance coverage verification and a schedule of construction dates have been included on data sheets entitled Contractor Firm Data Sheets, and are on file in the District's Water Department. 1 G. The following items are on file in the District office and incorporated herein by reference: • Development Agreement application • Contractor firm data sheet — water • Town of Truckee Encroachment Permit • Proof of Insurance • Project map • Improvement plans - water • Estimated costs and calculation of fees — water • Improvements by and Responsibilities of Developer — water • Improvements by and Responsibilities of District — water • Project documentation policy 1. Payment of Costs and Fees. The District has prepared an estimate of its costs for materials, labor, consultants, and legal expenses that the District expects to expend for administrative, design, inspection, and actual construction (hereafter collectively referred to as the "construction costs"). Upon start of construction, Developer shall deposit with the District amounts that shall be applied to the actual construction costs incurred by the District. If the actual cost exceeds the amount deposited, Developer shall pay such excess within thirty (30) days of receipt of the District's invoice. If the actual cost is less than the amount deposited, the District shall refund the difference within sixty (60) days of the date of Unconditional Acceptance of the water distribution system. Upon execution of this Agreement, Developer shall also pay to the District the fees set forth in the estimated construction costs and calculation of water fees. At the time water service is requested and construction of buildings or other facilities requiring water service are initiated, the payment of facilities and connection fees will be required. Facilities and connection fees paid will be at the rate in effect at the time service is requested. 2. Reimbursement Agreement. It is anticipated that other parcels may be connected to the 8-inch pipeline in the future. In the event that such connections) to the 8-inch pipeline for consumptive uses are made, reimbursement shall be made to the Developer on the following basis: A. The Developer shall submit copies of invoices, receipts and/or similar items to document the developer's actual costs. B. In the event that APN 48-210-14 (CHIP Truck Inspection Station) connects to the pipeline, the State of California shall be responsible to contribute an amount of reimbursement, equal to 50% of the actual costs of the portion of the pipeline upstream from the point of connection. These funds shall be collected by the District and transmitted to the Developer. C. In the event that APN 48-210-09 (Dept. of Agriculture Inspection Station) connects to the pipeline, the State of California shall be responsible to contribute an amount of reimbursement, equal to 16.66% of the actual costs of the portion of the pipeline upstream from the point of connection. These funds shall be collected by the District and transmitted to the Developer. It is assumed that any such connection by the Dept. of Agriculture would occur after a connection by the CHP Truck Inspection Station and the 50% contribution by the State of California note above. 2 D. In the event that other parcels not owned by the Developer or the State of California connect to the pipeline, the parcel owner shall be responsible to contribute an amount of $20,000 per parcel. These funds shall be collected by the District and transmitted to the Developer. A parcel that is connected to the pipeline and then later subdivided shall be entitled to a single connection. New parcels created by such a subdivision shall be responsible to contribute an amount of $20,000 per parcel. This reimbursement agreement shall cover only costs associated with construction of the 8-inch water pipeline and appurtenances. Costs associated with other utilities (such as natural gas) shall not be included. The provisions of this reimbursement agreement will expire twenty (20) years after the 84ch pipeline has been accepted by the District. 3. Provision of Easements &Encroachment Permits -Permission to Enter Land. Developer will provide encroachment permits and easements granting the right to do all things necessary for the construction of the water facilities including, but not limited to, a right to ingress and egress, a right to temporarily store equipment and materials, to excavate, to drive vehicles over, to place markers on, to survey, to inspect and repair, and to remove rocks, boulders, trees and plant life in the course of excavation or re -excavation. Upon completion of the project, Developer will provide permanent easements for the maintenance and repair of the water distribution system. A. Developer has obtained an Encroachment Permit from the Town of Truckee for facilities to be constructed within Town of Truckee right-of-way. B. Developer has submitted an Encroachment Permit application to Caltrans for facilities to be constructed within the right-of-way for Interstate 80. The Developer shall be responsible to revise the approved drawings as necessary to comply with the requirements of Caltrans and the District. The Developer shall be responsible to construct the pipeline to comply with the requirements of Caltrans and the District. C. An easement is required to construct the proposed pipeline across a parcel of land owned by the State of California (APN 48-210-09). The District will assist the Developer in attempting to acquire this easement. The District makes no guarantee that the State will grant the necessary easement. The Developer shall be responsible for all costs associated with acquisition of this easement. 4. Provision of Insurance -Upon execution of this agreement, Developer shall provide the District with satisfactory evidence of an insurance policy written upon a form and by a company which meets with the approval of the District, insuring the District, its officers, agents and employees against loss or liability which may arise during the construction, or which may result from any of the work or construction herein required to be done, including all costs of defending any claims arising as a result thereof. The minimum limits of such policy shall be in the amount of $1,000,000 for the death of or injury to any person in any one accident and $1,000,000 for the death of or injury to more than one person in any one accident and $1,000,000 for property damage in any one accident. Such policy shall be written in favor of Developer or its general contractor and subcontractors and also in favor of the District, its officers, agents and employees and shall be maintained in full force and effect until the water distribution system is Unconditionally Accepted by the District. Such insurance policy shall state by its terms or by an endorsement that it shall not be canceled without thirty (30) days prior written notice to the District that the right of subrogation is waived and that the coverage is provided on a primary and non-contributory basis. 3 5. Indemnification by Developer. Developer shall indemnify, defend and save harmless the District, its officers, agents and employees, and each of them, of and from any and all claims, demands, causes of action, damages, costs, expenses, losses, or liabilities, in law or in equity, of every kind and nature whatsoever, for, but not limited to, injury to or death of Developer, any subcontractor of Developer, or any officers, agents or employees of the District, of Developer, or of any subcontractor, or any other person, and damages to or destruction of property of the District or any other person, arising out of or in any manner directly or indirectly connected with the work to be performed under this Agreement, however caused, regardless of any negligence of the District or its officers, agents or employees, except the active negligence or willful misconduct of the District. 6. Improvements by and Responsibilities of Developer. Developer shall perform and be responsible for all labor and material expenses involved in performing the water distribution system improvements described in the attachment entitled Improvements by and Responsibilities of Developer. 7. Improvements by and Responsibilities of District. The District shall assign a Project Administrator to oversee the Project. The District shall perform water distribution system improvements at Developer's expense as described in the attachment entitled Improvements by and Responsibilities of District. The construction costs deposited with the District shall be applied to the actual construction costs unless otherwise indicated. If the actual construction costs exceed such deposit, Developer shall pay such excess within thirty (30) days of receipt of the District's invoice. 8. Construction Inspection. The District shall inspect the construction from time to time, in order to determine that the water distribution system is installed in accordance with the approved improvement plans, construction specifications and the terms of this agreement. 1) The District shall notify the Developer and/or the Developer's representatives in writing as to any deviation from the approved improvement plans, construction specifications and the terms of this Agreement. The Developer and/or the Developer's representatives shall correct such deviation or failure as soon as is reasonably practicable. 9. Timely Construction Required. Construction of the water distribution system Project shall be completed and Unconditional Acceptance by the District, as defined herein, within twelve (12) months from the date of execution of this Agreement. In the event Developer fails to complete the water distribution system Project within that time, the District may at its discretion (1) increase any and all fees and costs to equal the District's current charges, (2) require Developer's plans and specifications to be updated and redrawn to comply with the District's current standards, and (3) terminate this Agreement and recover from Developer the full cost of all expenses and charges incurred by the District, including but not limited to material, labor, backfill, paving and outside services. 10. Developer's Warranty. Developer warrants and guarantees that all labor and materials supplied by Developer are of a good and workmanlike quality, free of any defects of any type whatsoever for a period of one (1) year from the date of Unconditional Acceptance by the District. Within the period of this warranty, Developer shall repair or replace, at Developer's expense, any defective material or workmanship, The District shall notify Developer of any malfunction or nonconformity promptly upon discovery. Within fifteen (15) business days after receiving notice from the District, Developer shall commence to repair or replace the defective part and will expeditiously 4 pursue such work to completion and acceptance by the District. Emergency repairs will be coordinated by District and charged to the Developer. 10. CONDITIONAL ACCEPTANCE - IF REQUESTED by Developer If Developer requests Conditional Acceptance of the Project, the circumstances outlined below must be complied with prior to issuance of written Conditional Acceptance from the District. A. Provision of Water Service. Upon completion of water distribution system Project construction (including pressure testing and disinfection), the facilities underthis Development Agreement shall remain off, without water services, until either: or 1) Conditional Acceptance of the Project is issued by the District. 2) Unconditional Acceptance of the Project is issued by the District. Until either of these conditions is met, water for domestic and fire protection will not be provided. B. Completion of the System. Project shall be deemed complete when the District determines that the water distribution system has been entirely finished, properly tested, and qualifies for Unconditional Acceptance. C. Conditional Acceptance. When the District has determined that the water distribution Project has been completed the District may provide water service, on a conditional basis, to the Project. Conditional Acceptance will enable Developer to use the Project while Developer is in the process of providing to the District those items specified in the Requirements for Unconditional Acceptance, When Developer has fully complied with all steps set forth below, the District will issue in writing Conditionally Acceptance of the water distribution Project. IN The Developer submits a written request for Conditional Acceptance of the water Project using the District's form (provided upon request). 2) The Developerwill arrange for District to conduct a walk through inspection of the Project water system improvements. Developer will be responsible to repair, replace and or correct deficiencies, identified during this inspection. 3) The Developer submits a Conditional Acceptance deposit for all potential water corrections that are within the limits of the water distribution Project in the amount equal to 5% of the Project cost or phase cost. The method of calculating these deposits and the amounts required are on file atthe District. 4) Developer shall execute an offer of dedication for the water distribution system Project to the District in a form satisfactory to the District, without cost, free, and clear of all liens and encumbrances. 5) Developer shall provide the District with the appropriate permanent easements. 6) Developer shall provide a copy of the final map, if applicable. 5 7) Developer shall pay any outstanding costs and fees. If the actual costs exceed the amount deposited with the District, a funds transfer agreement can be executed to transfer any remaining deposits that may be in the Electric Development Agreement (if applicable) to cover the amount due in the Water Development Agreement. 8) The District has determined that the water system has been pressure tested, disinfected, successfully passed bacteriological sampling and it is appropriate to activate the water system. 9) The Conditional Acceptance Deposit will be refunded within 60 days of the date District issuance of Unconditional Acceptance of the water system Project. 11. UNCONDITIONAL ACCEPTANCE REQUIREMENTS A. Project Final Walk Through Inspection. Developer acknowledges that a final walk through inspection of all water system improvements is required. Developer is responsible to repair, replace and or correct deficiencies identified during this inspection. B No Early Use of Project. Developer shall not request or obtain a temporary occupancy permit, final inspection approval, nor shall Developer use, or permit anyone else to use, any portion of the water distribution system Project, until the District has granted Conditional Acceptance in writing. C. Within thirty (30) days after Project completion as determined by the District. Developer shall comply with all steps set forth below and if Conditional Acceptance was not previously requested and granted prior to final acceptance, items CA through C.8 under Conditional Acceptance will be required. In addition to items CA through C.8, Developer shall comply with the following conditions. 1) Developer shall provide the District with Project documentation drawings in compliance with District policy (see attached). 2) Developer shall provide the District with a maintenance bond in a form satisfactory to the District in a sum equal to fifteen percent (15%) of the ultimate construction costs of the water distribution system. This bond shall remain in effect for a period of one (1) year after the date of District Unconditional Acceptance of the water distribution system Project that will protect against any defects or failures in the systems that may develop during that time. 3) Developer shall provide the District with a statement of the "as -built" dollar value of the installed water distribution system with documentation to substantiate the stated value. 4) Prior to Unconditional Acceptance of the water distribution system Project by the District, Developer shall be responsible for all maintenance and repair of the water distribution system Project. Upon Unconditional Acceptance of the water distribution system Project by the District, the District shall thereafter 6 own, operate, maintain, repair and replace the water distribution system, unless such repairs or replacements are covered by Developer's warranty. 5) Following Unconditional Acceptance of the Project, the District shall use its best efforts to provide adequate water service to the Project upon completion of any permit requirements and payment of all appropriate fees and charges, in accordance with District Rules and Regulations. 12. Notices. Notices or requests from either party to the other shall be in writing and delivered or mailed, postage prepaid, to the following addresses: PIPING ROCK EQUESTRIAN CENTER Martin Fielding 12318 Union Mills Road Truckee, CA 96161 TRUCKEE DONNER PUBLIC UTILITY DISTRICT Attention: Contract Administrator 11570 Donner Pass Road Truckee, California 96161 13. Successors and Assigns. This Agreement shall be binding upon and insure to the benefit of the successors and assigns of all parties; however, Developer shall not assign any of its rights, duties or obligations under this Agreement without the prior written consent of the District. 14. District Powers. Nothing contained herein shall be deemed to limit, restrict, or modify any right, duty, or obligation given, granted, or imposed upon the District by the laws of the State of California now in effect, or hereafter adopted, nor to limit or restrict the power or authority of the District. The District may enact rules, regulations, resolutions, or ordinances, including, without limitation, creation of service zones and rate differentials applicable within the Project area that may not be applicable elsewhere, at its discretion. 15. Severability. In the event that any part or provision of this Agreement is found to be illegal or unconstitutional by a court of competent jurisdiction, such findings shall not affect the remaining parts, portions, or provisions of this Agreement. 16. Attorneys' Fees. In the event of any litigation concerning any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach hereof, or the interpretation hereof, the prevailing party shall be entitled to recover from the losing party reasonable attorneys' fees and costs incurred therein or in the enforcement or collection of any judgment or award rendered therein. 17. Entire Agreement. This Agreement contains the entire agreement of the parties and supersedes any priorwritten or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties relating to the subject matter contained in this Agreement which are not fully expressed herein. The provisions of this Agreement may be waived, altered, amended or repealed in whole or in part only upon the written consent of all parties to this Agreement. 7 18. Dispute Resolution. If at any time during the Development Agreement process issues arise that need resolution, the Developer should submit a written request to the Project Administrator responsible for the project in question. Such request shall state all of the items of concern. The Developer can expect a response within 10 business days from receipt of request. If no resolution is reached, the Developer can request a meeting with the District's General Manager. If still no resolution is reached, the Developer can request a meeting before the Board to resolve the issue. The item shall be agendized before the Board for the next scheduled regular Board meeting. Scheduling shall be consistent with the Brown Act and must occur with at least 72 hours prior notice. Only after this process is exhausted without resolution of the dispute may the parties proceed to litigation. If either party commences a court action against the other based on a dispute or claim to which this paragraph applies without first complying with the provisions of this paragraph, the party commencing the court action shall not be entitled to recover attorney's fees or costs, even if they would otherwise be available in such court action. 19. Forum. Any litigation to enforce or interpret the provisions of this Agreement or the parties' rights and liabilities arising out of this Agreement or the performance hereunder shall be maintained only in the courts in the Superior Court in and forthe County of Nevada, California, if in state court, or the Federal Court for the Eastern District of California, if in federal court. 20. Captions. The captions and headings of the different paragraphs of this Agreement are inserted for convenience of reference only, and are not to be taken as part of this Agreement or to control or affect the meaning, construction, or effect of the same. 21. Necessary Acts. Each party to this Agreement agrees to perform any further acts and execute and deliver any further documents that may be reasonably necessary to carry out the provisions of this Agreement. 22. No Waiver. The waiver by one party of the pertormance of any covenant, condition or promise shall not invalidate this Agreement, nor shall it be considered as a waiver by such party of any other covenant, condition or promise. The delay in pursuing any remedy or insisting upon full performance for any breach or failure of any covenant, condition or promise shall not prevent a party from later pursuing remedies or insisting upon full performance for the same or any similar breach or failure. 23. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. This Agreement shall be binding upon the parties only when signed by all parties. The District representative shall not sign this Agreement until Developer has provided all costs, fees and items required to be provided by Developer "upon execution of this Agreement." r Dated: Ed Svendsen, Developer Piping Rock Equestrian Center Dated: Michael D. Holley, P.E., General Manager Truckee Donner Public Utility District Joseph R. Aguera, President of the Board Truckee Donner Public Utility District 0 Estimated Costs Union Mills Rd Waterline WO # =16=744354 The Estimated Costs are as follows: Administrative and design $ 0.00 Engineering & Administrative $ 41900,00 Construction and inspection $ 133100600 Protect documentation deposit (not required) $ 5/000000 Total Estimated Costs $ 23,000.00 Less Deposit Paid in Advance ($ 1,000.00) 10 Improvements by and Responsibilities of Developer 1. Schedule a pre -construction meeting with District staff. 2. Provide all permits and easements required. 3. Provide all traffic control and trench protection as required per applicable laws and TDPUD field supervisor's requirements. 4. Construct water system improvements per approved plans/construction drawings. 5. Water facilities constructed under this "Development Agreement/Estimate of Water Construction" shall be constructed by appropriately licensed. contractors. Contractors shall have current and active licenses issued by the California Department of Consumer Affairs, Contractors License Board. The appropriate licenses for water system construction are typically "A — General Engineering Contractor", or "C34 — Pipeline Contractor". 6. All construction to meet or exceed requirements of the current District WATER SYSTEM CONSTRUCTION STANDARDS. 7. Perform all water pipeline testing and disinfection per requirements of WATER SYSTEM CONSTRUCTION STANDARDS. 8. Provide compaction test results by a licensed professional. 9. Schedule main taps and meter installations with the Water Superintendent (Brian Wright 582-3957). A minimum of five working days notification is required for District crew scheduling. 10. Certify that the project was constructed with approved materials and incompliance with the development agreement and the approved plans, except as noted on the project documentation drawings. 11. Schedule and attend final walk through inspection with contractor and District representatives. 11 Improvements by and Responsibilities of District 1. Operate water system as required including customer nocation (outages), system shut -down and system flushing. 2. Attend pre -construction meeting. 3. Inspect installation and construction of Project. 4. Observe "Site -Survey", document findings and prepare punch list of required work as necessary. 5. Perform 8" tap on contractor installed tapping saddle and valve. 6. Take bacteriological samples. 7. Test locator wire installation. 8. Attend final walk thru inspection and prepare punch list if necessary. 12