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HomeMy WebLinkAboutLow Gap Homes, LLC 2006-08-15amu- © 3/S 01� AGREEMENT FOR SUBDIVISION IMPROVEMENTS THIS AGREEMENT is made and entered into by and between the City of Ukiah, California, hereinafter referred to as "City", and "Low Gap Homes LLC", hereinafter referred to as "Subdivider", both of whom understand as follows: RECITALS: Subdivider has presented to City for approval a final subdivision map (hereinafter called "Map") entitled "Final Map of Major Subdivision No. 05-17, Low Gap Homes Subdivision." The Map has been filed with the City Clerk of City for presentation to the City Council of the City for its approval, which Map is hereby referred to and incorporated herein; Subdivider has requested approval of the Map prior to the construction and completion of improvements, including all streets, highways or public utility facilities which are a part of, or appurtenant to the subdivision (hereinafter called "subdivision") designated in the Map, all in accordance with and as required by the plans and specifications for all or any of said improvements in, appurtenant to, or outside the limits of the subdivision, which plans and specifications are now on file in the office of the City Engineer of the City; City Council on the 17th day of May, 2006, adopted Resolution No. 2006-55 approving Map and accepting the dedications therein offered, or some thereof, on condition that Subdivider first enters into and executes this agreement with City and meets the requirements of said resolution; and This agreement is executed pursuant to the provisions of the Subdivision Map Act of the State of California and Chapter 1 of Division 9, Ukiah City Code. NOW THEREFORE, for and in consideration of the approval of the Map, and in order to insure satisfactory performance by Subdivider of Subdivider's obligations under said Subdivision Map Act and said code, the parties agree as follows: 1. PERFORMANCE OF WORK. Subdividers will do and perform, or cause to be done and performed, at Subdivider's own expense in a good and workmanlike manner and furnish all required material, all under the direction and to the satisfaction of the City Engineer of City, all of the following work and improvements within (and/or without) the Subdivision, to wit: The work and improvements described herein and/or shown upon the improvement plans for Low Gap Homes prepared by Kincheloe Engineering, consisting of 7 sheets dated May 1, 2006, on file in the office of the City Engineer of the City of Ukiah, which is incorporated herein by reference. The estimated total cost for said improvements of $430,680 as described in the document entitled "Cost Estimate for Improvements, Low Gap Homes", a copy of which is attached hereto and incorporated herein by reference. The Subdivider shall also do all work and furnish all the materials necessary in the opinion of the City Engineer, and on his order to complete the improvements in accordance with the plans and specifications on file as hereinbefore specified, or with any changes required or ordered by said Engineer, which in his opinion are necessary or required to complete the work. 2. WORK: PLACES AND GRADES TO BE FIXED BY ENGINEER. All of said work is to be done at the places, of the materials, in the manner and at the grades, all as shown upon the plans and specifications therefor heretofore approved by City Engineer and which are now on file in his office and to the satisfaction of said City Engineer. 3. WORK: TIME FOR PERFORMANCE. Subdivider agrees to complete such work on or before the 31 st day of July 2007. At least fifteen calendar days prior to the commencement of work hereunder, Subdivider shall notify City Engineer in writing of the date fixed by Subdivider for commencement thereof so that City Engineer shall be able to provide services of inspection. 4. TIME OF ESSENCE - EXTENSION. Time is of the essence of this agreement; provided that in the event good cause is shown therefor, the City Manager may extend the time for completion of the improvements hereunder. If Subdivider has secured its performancewith a Letterof Credit, the City shall not extend the time for performance unless the expiration of the Letter of Credit is extended by the same amount of time. Any such extension may be granted without notice to the Subdivider's surety and extensions so granted shall not relieve the surety's liability on the bond to secure the faithful performance of this agreement. The City Manager shall be the sole and final judge as to whether or not good cause has been shown to entitle Subdivider to an extension. 5. REPAIRS AND REPLACEMENTS. Subdivider shall replace, or have replaced, or repair, or have repaired as the case may be, all pipes and monuments shown on the Map which may have been destroyed or damaged and Subdivider shall replace or have replaced, repair or 2 have repaired, as the case may be, or pay to the owner, the entire cost of replacement or repairs, of any and all property damaged or destroyed by reason of any work done hereunder whether such property be owned by the United States or any agency thereof, or the State of California, or any agency or political and subdivision thereof, or by the City or by any public or private corporation, or by any person whomsoever, or by any combination of such owners. Any such repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer. 6. PERMITS: COMPLIANCE WITH LAW. Subdivider shall, at Subdivider's expense, obtain all necessary permits and licenses for the construction of such improvements, give all necessary notices and pay all fees and taxes required by law. 7. SUPERINTENDENCE BY SUBDIVIDER. Subdivider shall give personal superintendence to the work on said improvement or have a competent foreman or superintendent satisfactory to the City Engineer on the work at all times during progress with authority to act for Subdivider. 8. INSPECTION BY CITY. Subdivider shall at all times maintain proper facilities and provide safe access for inspection by City to all parts of the work and to the shops wherein the work is in preparation. Subdivider shall not render work incapable of inspection for, by example, burying or enclosing the work, before providing City with adequate prior notice and an opportunity to inspect. 9. CONTRACT SECURITY. Concurrently with the execution hereof, Subdivider shall furnish improvement security consisting of one or more of the following: (1) a cash deposit or deposits made with the City, (2) a bond or bonds by one or more duly authorized corporate sureties or (3) an instrument or instruments of credits from one or more financial institutions subject to regulation by the state orfederal government pledging that the funds necessary to meet the performance are on deposit and guaranteed for payment and agreeing that the funds- designated by the instrument shall become trust funds for the purposes set forth in the instrument. Said improvement security shall be in the amounts and for the following purposes: (a) an amount equal to or at least one hundred (100%) percent of the total estimated cost of the improvement conditioned upon the faithful performance of this agreement and (b) an additional amount equal to not less than fifty (50%) of the total estimated cost of the improvement securing payment to the contractor, his subcontractors and to persons renting equipment or furnishing labor or materials to them for the improvement. Any 3 reductions authorized to be made in the amount of the improvement security shall be effected by a refund from any cash deposits made or a partial release of any surety bond or instrument of credit. If Subdivider deposits a cash security with City, it shall have no obligation to account to Subdivider for interest on said deposit from the date of deposit until said security is expended or returned to Subdivider. City shall have no obligation to record the Map unless or until Subdivider has executed this Agreement and furnished contract security as required by this Agreement. 10. RELEASE OF SECURITY. Reductions in the faithful performance improvement security may be made in such amounts as in the opinion of the City Engineer and the City Manager will equal not more than ninety (90%) percent of the estimated cost of improvements then satisfactorily completed. Said reductions shall be authorized upon the filing with the City Clerk of a written certification by the City Engineer and the City Manager that the work covered thereby has been satisfactorily completed and stating the amount of the reduction authorized. The balance of said improvement security shall be released after one (1) year following the acceptance of such improvements by City provided that Subdivider has fully complied with all conditions of this agreement including Section 14 thereof; provided, labor and material security may be released six (6) months after acceptance of work. 11. HOLD -HARMLESS AGREEMENT. Subdivider hereby agrees to, and shall hold City, its elective and appointive boards, commissions, officers, agents and employees harmless from any liability for damage or claims for damage for personal injury, including death as well as from claims for property damage which may arise from Subdivider's or Subdivider's contractors, subcontractors, agents or employees operations under this agreement whether such operations be by Subdivider or by any Subdivider's contractors, subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for, Subdivider or any Subdivider's contractors or subcontractors. Subdivider agrees to and shall defend City and its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damages caused or alleged to have been caused by reason of any of the aforesaid operations; provided as follows: a. That City does not and shall not waive any rights against Subdivider which it may have by reason of the aforesaid hold -harmless agreement because of the acceptance by City or the deposit with City by Subdivider of any of the insurance policies described in Section 12 hereof. b. That the aforesaid hold -harmless agreement by Subdivider shall apply to all damages and claims for damages of every kind suffered or alleged to have been suffered by reason of any of the aforesaid operations referred to in this L, paragraph regardless of whether or not City has prepared, supplied or approved of plans and/or specifications for the subdivision or regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages. 12. SUBDIVIDER'S INSURANCE. Subdivider, or its Contractor, shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Subdivider, his agents, representatives, employees or subcontractors. A. MINIMUM SCOPE OF INSURANCE Coverage shall be at least as broad as: 1. Insurance Services Office form number GL 0002 (Ed. 1/73) covering Comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage ("occurrence" form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/78) covering Automobile Liability, code 1 "any auto' and endorsement CA 0025. 3. Worker's Compensation insurance as required by the Labor Code of the State of California and Employer's Liability insurance, if Subdivider, or its Contractor, has employees who will directly or indirectly provide service or support Subdivider, or its Contractor, in his provision of services under the Agreement. B. MINIMUM LIMITS OF INSURANCE Subdivider, or its Contractor, shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/ location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. 5 3. Worker's Compensation and Employer's Liability: Worker's Compensation limits as required by the Labor Code of the State of California and Employer's Liability limits of $1,000,000 per accident. C. DEDUCTIBLES AND SELF-INSURED RETENTIONS Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Subdivider shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. OTHER INSURANCE PROVISIONS The policies are to contain, or be endorsed to contain, the following provision: General Liability and Automobile Liability Coverages a. The City, its officers, officials, employees and volunteers are to be covered as insureds as respects 1) liability arising out of activities performed by or on behalf of the Subdivider, 2) products and completed operations of the Subdivider, 3) premises owned, occupied or used by the Subdivider, or 4) automobiles owned, leased, hired or borrowed by the Subdivider. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees or volunteers. b. The Subdivider's, or its Contractor's, insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Subdivider's, or its Contractor's, insurance and shall not contribute with it. C. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officers, officials, employees or volunteers. d. The Subdivider's, or its Contractor's, insurance shall apply separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer's liability. 9 2. Worker's Compensation and Employer's Liability Coverage The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees or volunteers for losses arising from work performed by the Subdivider, or its Contractor, for the City. 3. All Coverages Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. E. ACCEPTABILITY OF INSURERS Insurance is to be placed with insurers with a Best's rating of no less than A:VII. F. VERIFICATION OF COVERAGE Subdivider shall furnish the City with certificates of insurance and with original endorsements effecting coverage required by this clause.. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided by the City. Where by statute, the City's workers compensation -related forms cannot be used, equivalent forms approved by the Insurance Commissioner are to be substituted. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. G. SUBCONTRACTORS Subdivider shall include contractual liability in its coverage of all contractors and subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each such contractor or subcontractor. All coverages for contractors or subcontractors shall be subject to all of the requirements stated herein. 13. TITLE TO IMPROVEMENTS. Title to and ownership of water main and joint trench facility improvements constructed hereunder by Subdivider shall vest absolutely in City upon completion and acceptance of such improvements by City, free of all liens, claims or other encumbrances. 7 14. REPAIR OR RECONSTRUCTION OF DEFECTIVE WORK. If, within a period of one year after final acceptance of the work performed under this agreement, any structure or part of any structure furnished and/or installed or constructed, or caused to be installed or constructed by Subdivider, or any of the work done under this agreement fails to fulfill any of the requirements of this agreement or the specifications referred to herein, Subdivider shall without delay and without any cost to the City repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure. Should Subdivider fail to act promptly or should the exigencies of the case require repairs or replacements to be made before Subdivider can be notified, City may at its option make the necessary repairs or replacement or perform the necessary work and Subdivider shall pay to City the actual cost of such repairs plus fifteen (15) percent. 15. SUBDIVIDER NOT AGENT OF CITY. Neither Subdivider nor any of Subdivider's agents or contractors are or shall be considered to be agents of City in connection with performance of Subdivider's obligations under this agreement. 16. COST OF ENGINEERING AND INSPECTION. Subdivider shall pay City for all engineering, inspection, and other services furnished by City in connection with the subdivision. Where fees are established for such engineering, inspection or other services by ordinance or regulation of City, Subdivider shall pay on the basis of those established fees. Where no fees are established Subdivider shall pay the actual cost to City. City shall furnish statements of all charges for services performed by City and Subdivider shall complete payment of such charges within ten (10) days to take over the performance of the contract and does not commence performance thereof within five days after notice to City of such election, City may take over the work and prosecute the same to completion by contract or by any other method City may deem advisable for the account and at the expense of Subdivider and Subdivider's surety shall be liable to City for any excess cost or damages occasioned City thereby; and in such event City, without liability for so doing, may take possession of and utilize in completing the work such materials, appliances, plant and other property belonging to Subdivider as may be on the site of the work and necessary therefor. 17. NOTICES. All notices herein required shall be in writing and delivered in person or sent by certified mail, postage prepaid. Notices required to be given to City shall be addressed as follows: City Engineer City of Ukiah 300 Seminary Avenue Ukiah, California, 95482 Notices required to be given to Subdivider shall be addressed as follows: Bruce Shimizu Low Gap Homes, LLC PO Box 1874 950 Milsom Place Windsor, CA 95492 Notices required to be given surety of Subdivider shall be addressed as follows: Travelers Casualty and Surety Company of America One Tower Square Hartford, Connecticut 06183 Provided that any party or the surety may change such address by notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address. D DATED AND EFFECTIVE this Vii— dy of 14 ?20 ATTEST: °—CITY CLERK "CITY' CITY OF UKIAH B Candace Horsley, City M nager ill Subdividar Sign:��fi L C�A,4N2u uw e Print:r► COST ESTIMATE FOR IMPROVEMENTS LOW GAP HOMES ITEM DESCRIPTION TOTAL COST 1 Grading 144,500 2 Sanitary Sewer 37,887 3 Water 60,620 4 Storm Drain 41,526 5 Street and Misc. 89,971 Subtotal 374,504 15% Contingency 56,176 TOTAL $430,680 11