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HomeMy WebLinkAbout1993-019 Camino Real Fashion Outlets Amt. w/ Golden West rlove tract No. 93019 AGREEMENT FOR THE ACQUISITION OF IMPROVEMENTS CITY OF ATASCADERO CAMINO REAL IMPROVEMENT PROJECT THIS AGREEMENT is made and entered into this day of1993, by and between the City of Atascadero, a municipal corporation of the ate o California (the "City"), acting on behalf of the Camino Real Improvement Project Assessment District, and Golden West Development Corp., a California corporation, (the "Developer"). RECITALS: 1. Developer has filed its petition with the City, and the City has instituted proceedings under the Municipal Improvement Act of 1913 (the "Act"), for the formation of a special assessment district pursuant to Resolution No. 119-92, adopted November 10, 1992, for the acquisition and construction of public improvements and to finance the cost thereof by the issuance of City of Atascadero, Camino Real Improvement Project, Limited Obligation Improvement Bonds (the "Bonds"), under the Improvement Bond Act of 1915 (the "Bond Act"). 2. Developer is the owner of all that certain land, the boundaries of which are shown on a map thereof attached hereto as Exhibit "A", and said land shown in that Exhibit "A" is located within the boundaries of the Camino Real Improvement Project Assessment District (the "Assessment District") and is thereby subject to a lien of assessment allocated among the land within the Assessment District pursuant to an engineer's report (the "Engineer's Report") a copy of which is attached hereto as Exhibit 111311. 3. Developer desires to construct all of the public improvements generally described in Exhibit "B" (the "Improvements"). 4. The City and the Assessment District have determined that the acquisition of the Improvements pursuant to this Agreement will provide a public purpose by permitting the earlier installation of needed public improvements than could be achieved without such acquisition. 5. The City Council adopted Resolution 70-93 on June 22, 1993, approving the form of the "Agreement for Acquisition of Public Improvements" and authorized the City Manager to sign said Agreement on behalf of the City. 1 COVENANTS: In consideration of the mutual promises and covenants set forth herein, and for other valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: 1. Recitals. Each of the parties hereto represent and warrant, each to the other, that the above recitals are true and correct. 2. Formation of the Assessment District and the Sale of Bonds. The City shall continue to completion all necessary proceedings (the "Proceedings") pursuant to the Act and Bond Act for the issuance, sale and delivery of the Bonds (the "Bonds"); provided that each step in the Proceedings and the Principal amount and timing of the sale of Bonds shall be in all respects subject to the approval of the City Council or its designee and nothing contained herein shall be construed as requiring the City to issue the Bonds for the Assessment District. 3. Purchase and Sale. Subject to the terms and conditions contained hereinafter, the Developer agrees to sell and the City agrees to purchase all those certain public improvements as more particularly described in Exhibit "B". 4. Use of Bond Proceeds. The proceeds of the Bonds shall be deposited, held, invested, reinvested and disbursed as provided in the Resolution pursuant to which the Bonds are issued (the "Resolution"). A portion of the proceeds of the Bonds shall be set aside pursuant to the Resolution in a separate improvement fund (the "Improvement Fund") to pay the cost of the acquisition of those certain Improvements described in Exhibit "B". 5. Construction of and Payment for Improvements. (a) Plans and Specifications; Prevailing Wages. The Developer represents that it has or will obtain approval in writing by all appropriate City departments of the plans and specifications for the Improvements. The Developer further represents that said design, plans and specifications shall meet all City standards and requirements, as well as all other local, state and federal standards and requirements, as applicable. To the extent required by applicable law, the Developer and its contractors shall comply with the California Labor Code provisions concerning payment of prevailing wages, wage rates, employment of apprentices, hours of work and overtime, keeping and retention of payroll records, and other requirements applicable to public works projects within the meaning of the Labor Code. 2 err+ (b) Call for Bids. The Developer shall solicit and obtain not less than three (3) proposals or bids for the construction of said Improvements. The Developer shall be directed to publish once a week for two weeks in a local newspaper published and circulated in the City, a Notice inviting sealed proposals or bids for the construction of Improvements, and referring to the approved plans and specifications. Proof of publication shall be provided to the City. Said sealed proposals shall be delivered to the City Clerk and opened at the office of the City Engineer at City Hall, or such other City office as the City shall designate. Developer shall award the contract to the lowest responsible bidder or, within ten (10) days after receipt of bids, can agree to perform the work himself at a price not exceeding the lowest responsible bid. The contractor shall be approved by the City prior to award of contract and shall be licensed in the State of California to do the type of work called for in the approved plans and specifications. Said approval shall not be unreasonably withheld. Such selected contractor shall construct the improvements consistent with the approved plans and specifications. (c) Inspection and Acceptance. The Improvements shall be promptly accepted by the City and the Purchase Price (as hereinafter defined) promptly paid from Bond proceeds if upon a final inspection by the City the Improvements are completed in accordance with the approved plans and specifications, a notice of completion has been filed by the Developer with the San Luis Obispo County Recorder, and there has been a delivery of appropriate lien releases from all subcontractors and a waiver and lien release from the general contractor. Developer shall be responsible for all costs incurred in testing the Improvements needed or required by the City or other public entities having jurisdiction, such as the State Department of Health Services or the California Regional Water Quality Control Board. The Improvements shall be subject to inspection by the City, which inspection shall be accomplished in a timely manner. The inspection of the Improvements shall not relieve the Developer or its contractors of their obligation to construct the Improvements in accordance with the approved plans and specifications. The Developer shall provide the City with a twelve (12) month warranty covering workmanship and materials. Defective work shall be made good and substandard materials may be rejected and replaced at no cost to the City, notwithstanding that such work and materials have been previously overlooked or inspected by the City. If any deviation occurs with respect to the plans and specifications it shall require a change order approval of the City. Prior to acceptance of any Improvements by the City, the Developer shall provide as-built drawings in a reproducible mylar form reasonably acceptable to the appropriate City Engineer, along with evidence reasonably satisfactory to the City Engineer that all costs of the Improvement have been fully paid by the Developer, and certification by the Developer's engineer that all improvements have been constructed in substantial conformance with the plans and specifications. All warranties, guarantees or other evidence of contingent obligations of third persons 3 with respect to such Improvements shall be delivered to the City Engineer prior to the City's acceptance thereof. All improvements shall be in conformance with and satisfy the project conditions of approval as specified in Conditional Use Permit 04-91 and tentative parcel map 07-91 or approved modifications thereto, prior to final acceptance. (d) Purchase Price. City agrees to pay the actual cost of the items of construction set forth in Exhibit "B" attached hereto (the "Purchase Price") which shall be reasonably determined by the City Engineer. The Purchase Price shall not exceed the cost of developing the Improvements described in Exhibit "B". Notwithstanding the foregoing, the Purchase Price shall include, but not be limited to, all costs of the Improvements, the costs for preparing plans, specifications and as-built drawings, and all costs of construction reasonably determined by the City Engineer to be eligible under the Act to be part of the Purchase Price. The Purchase Price will also include fees and costs incurred in obtaining permits, licenses, easements, the costs of change orders, plan checking, inspection, engineering, legal, construction supervision, administration, and accounting, as shown in Exhibit "B". The Developer shall provide any documentation substantiating the cost of the Improvements reasonably requested by the City Engineer or the City Administrative Office. There shall be a presumption of reasonableness as to costs incurred under a construction contract entered into as a result of calling for bid proposals, provided that no extraordinary limitations or requirements (such as a short time frame) are imposed by the Developer or the performance of such construction contract. All contracts for engineering, surveying or construction management shall be reviewed by the City Engineer to verify compliance with the specifications in the bid documents and with Exhibit "B". e. Payments to Developer. Once monthly the Developer may request in writing a partial payment for improvements constructed in accordance with Exhibit "B", in a format and procedure to be approved by the City Engineer and the City Finance Director. Such payment requests shall include only those items constructed and completed in accordance with the plans and specifications. Where such a construction is substantially complete but lacks incidental items such as final testing or cleanup, the payment request should reflect a percentage of completion as the basis for payment. All such payment request for construction shall be subject to approval by the City Engineer who shall issue a cost certificate to the Finance Director to substantiate payments from the improvement fund from available bond proceeds. Such partial payments made by the Assessment District shall not be construed as acceptance of the improvement by the City, which shall not occur until completion of that project phase and final acceptance by the City Council. No separate payments will be made for material only. The City shall retain an amount equal to 10% of the approved amount of 4 each payment made. The 10% retention will be released for the project (or approved phase of the project) according to the following procedure: (1) The City Engineer will perform the final inspection of the project or approved phase. (2) The Developer shall complete any deficient items to the satisfaction of the City Engineer. (3) Upon completion of all construction items, the City Engineer will issue a statement that the work has been completed to the City Engineer's satisfaction. (4) The Developer shall prepare and record a Notice of Completion for the project or approved phase. (5) The Developer or the subcontractor constructing the improvements shall post the required 10% maintenance guarantee for the project or approved phase. (6) The City Council shall accept the improvements effective thirty five (35) days after the recording of the Notice of Completion as long as no liens or claims are filed during that time period. (7) The final payment will then be made thirty five (35) days after recordation of the Notice of Completion and the project will be formally accepted by the City. The Developer may construct the project in phases by separate contracts as approved by the City Engineer. Payment requests by the Developer may include incidental items as defined in Exhibit "B" including engineering, staking, testing, etc. All such pay requests shall be accompanied by original invoices based on contracts reviewed by the City Engineer in accordance with Exhibit "B". Notwithstanding the above, the total amount of payments approved by the City shall not exceed the purchase price for the total of all the improvements to be acquired hereunder as listed in Exhibit "B". The City shall acquire the improvements and accept them in one or more phases provided they have been constructed in substantial conformance with the plans and specifications. 6. Ownership and Transfer of Improvements. The provision for conveyance of the Improvements to the City shall take place as follows: 5 (a) Improvements Constructed on Land Owned by Developer. If Improvements are located on land owned or controlled by Developer, then Developer shall retain the title it obtains to said land and the Improvements constructed thereon until the land and Improvements are acquired by City, pursuant to this Agreement. Until title to the land and Improvements are acquired pursuant to this Agreement, the Developer shall maintain the land and Improvements in good and safe condition. Transfer of title to the land and Improvements shall take place as specified below. (b) Improvements Constructed on Land Owned by City in Fee or Easement. If Improvements are located on land which the City holds fee title or easement rights, the Developer is hereby granted a license to enter the said land for purposes related to the construction and maintenance, prior to acquisition by the City of said Improvements pursuant to this Agreement. (c) Personal Property. If the Developer provides any personal property as part of the Improvements to be acquired by the City pursuant to this Agreement, transfer by the Developer to the City shall be accomplished by a Bill of Sale. 7. Ownership and Transfer of Real Property. Conveyance of the real property to the City shall take place as follows: (a) Land (fee or easement). Developer shall transfer to the City the appropriate rights, title and interest in and to the land to be acquired as part of the Proceedings. Title to said land shall be free and clear of all liens, encumbrances and other monetary obligations, as evidenced by a standard CLTA from of title insurance issued by a title company acceptable to City. Developer agrees to execute and deliver to the City, those documents of conveyance required to transfer acceptable title (as defined herein) to the land. Acceptable title means title to the land delivered free and clear, as evidenced by a standard CLTA form of title insurance, of all liens, encumbrances, assessments, easements or leases, whether any such interest is recorded or unrecorded, taxes, and any other monetary obligation, except those matters which are determined by the City Engineer in his reasonable direction not to interfere with the intended use of the land and therefore are not required to be cleared from the title. Developer also agrees to execute and deliver to the City all real property, interests in real property, easements, rights-of-way and title insurance that are necessary or appropriate for the ownership and maintenance of the said Improvements at no cost to City. (b) Closing Costs. City shall reimburse Developer from the available Bond proceeds, to the extent permissible under Paragraph 5e hereof, any requested documentary transfer taxes, the cost of title insurance for any title 6 policy, the cost of any special endorsements, the cost of any special endorsements, the cost of recording necessary documents and any escrow fees. 8. Permits. Licenses and Easements. Developer shall obtain all necessary local, City, and State permits and approvals, including, but not limited to, encroachment permits, and shall conform to the requirements thereof. Developer shall obtain all real property, interests in real property, easements and rights-of-way that are necessary or appropriate in the opinion of the City, for the ingress and egress to and from the Improvements for the maintenance, repair, removal, replacement and improvement thereof, and said grant deeds and easements shall be in a form approved by the City. 9. Indemnification and Hold Harmless. Developer and its contractors shall defend, indemnify and hold harmless the City and its Agents, officers, directors, employees and agents, and each and every one of them, from and against all actions, damages, claims, losses or expenses, including reasonable attorneys' fees and court costs, of every type and description, by reason of or resulting from (i) Developer's breach of any of its obligations under this Agreement (ii) the design, engineering and construction of the Improvements described in Exhibit "B", and all appurtenances thereto, (iii) any cause or causes whatsoever (other than City willful misconduct or sole active negligence) occurring in or about the Improvements while Developer is in possession thereof, or (iv) the claims of Developer, its officers, employees or agents, wherever or however the same may occur. In addition, if the City or any of its directors, officers, employees or agents should be sued as a result of such performance, the City shall notify the Developer which shall have the duty to defend the City, and/or its respective directors, officers, employees or agents, or, at the City's option, pay for such defense including, but not limited to, payment of all reasonable attorney's fees and expenses incurred by the City, and/or its respective directors, officers, employees or agents. City shall not be liable to Developer, for any injury to Developer in or about the land resulting from theft, fire, act of God, riot, strike, insurrection, war, court order, requisition or government order; provided, however, that City shall not be released from liability for loss or damage proximately caused by its willful misconduct or sole active negligence of which it has knowledge and a reasonable time to correct. The parties expressly agree and acknowledge that Developer's duties to indemnify, protect, defend and hold harmless under this paragraph shall extend to causes of action, penalties, claims, costs, expenses, demands, lawsuits and liability of or against the City resulting from the alleged failure to comply with any provision of the California Labor Code, Division 2, Part 7, Chapter 1 (Sections 1720-1861) in connection with the construction of Improvements. In connection with the foregoing, Developer agrees with City to secure comprehensive public liability and property damage insurance in the following amounts: comprehensive liability, $1,000,000 per person, $3,000,000 per occurrence; $500,000 7 property damage. Developer agrees with City that it shall specifically name and cause City, and its respective officers, agents and employees to appear as additional insureds under said comprehensive liability policy and shall see that the comprehensive liability carrier is obligated to furnish City a notice of any cancellation of said insurance at least thirty (30) days prior to any such cancellation. Developer further agrees to provide City prior to commencing work under this Agreement with evidence of said comprehensive, public liability insurance. The comprehensive general and automobile liability insurance coverage shall also include the following: (a) "Cross Liability" or "Severability of Interest" clause. (b) General Liability coverage shall include: (1) Comprehensive Form (2) Premises-Operations (3) Explosion and Collapse Hazard (4) Underground Hazard (5) Products/Completed Operations Hazard (6) Contractual Insurance (7) Broad Form Property Damage Including Completed Operations (8) Independent Contractors (9) Personal Injury (c) Automobile Liability coverage shall include: (1) Comprehensive Form Including Loading and Unloading (2) Owned (3) Hired (4) Non-Owned Before work is commenced, the Developer or its contractor shall furnish the City with certificates of insurance as satisfactory proof that he carries worker's compensation insurance as required by law and liability insurance in compliance with these requirements. 10. Relationship to Public Works. The parties hereto agree that this Agreement is for the acquisition of certain public Improvements and appurtenances thereto by the City from the proceeds of the sale of the Bonds and is not, nor is it intended to be, a public works contract. In performing this Agreement, the Developer is an independent contractor and not the agent of the City or the Assessment District. Neither the City or 8 Assessment District shall have the responsibility for payment to any contractor or supplier of the Developer. Notwithstanding the foregoing, the Developer understands that it shall be subject to certain public contract requirements as provided herein. 11. Attorney's Fees. In the event of the bringing of any suit by either party against the other arising out of this Agreement, the party is whose favor final judgment shall be entered shall be entitled to recover from the other party all costs and expenses of suit, including reasonable attorney's fees. 12. Records. All records, accounts, documentation and other materials relevant to a fiscal audit or examination, as specified by the City, shall be retained for a period of not less than three (3) years from the date that all Improvements have been acquired by the City pursuant to this Agreement or until such audit or examination is finished, whichever is later. If so directed by the City upon termination of this Agreement, the Developer shall cause all records, accounts, documents, and other materials relevant to the work to be delivered to the City as depository. 13. Audits and Recovery of Overpayments. City and state officials shall have the right, at any time during regular working hours, on reasonable advance notice, to monitor and audit all work performed and all records and procedures related to this Agreement, in order to see that all applicable city and state regulations are met, to determine the extent to which this Agreement is achieving its purpose, and to ensure that costs are being incurred, reported and paid properly. 14. Nondiscrimination. The City is an equal employment opportunity employer and is committed to an active nondiscrimination program. The City is committed to and will afford equal employment opportunity to all applicants and employees without regard to race, color, religion, ancestry, nation origin, age (over 40 years), sex, marital status, medical condition (cured or rehabilitated cancer), physical handicap, political beliefs, or sexual preference. During the performance of all present contracts and future contracts between the City and the State of California, which require the application of this policy, the City, the Developer and its subcontractors and agents shall not unlawfully discriminate against any ancestry, physical handicap, medical condition (cured or rehabilitated cancer), marital status, age (over 40 years), sex, political beliefs, or sexual preference. The City and Developer agree that no person in the United States shall, on the grounds of race, color, religion, national origin, sex, age or handicapped condition, be excluded from participation in, be denied benefits of, or be subjected to discrimination. 9 15. Conflict of Interest. The Developer or its subcontractors or agents shall not, during the term of this Agreement, with respect to the performance of this Agreement, without having promptly disclosed the same to City in writing: (a) Contract for the acquisition of goods or services for more consideration than would be paid for equivalent goods or services on the open market from any person who is related by blood or marriage to a manager or a member of the governing board of the Developer, subcontractor or their agents, as the case may be; or (b) Contract for the acquisition of goods or services for more consideration that would be paid for equivalent goods or services on the open market from the organization in which any person who is related by blood or marriage to a manager or member of the governing board of the Developer, subcontractor or their agents, as the case may be, has substantial personal financial interest. Such disclosure shall be in writing, addressed to the City Administrative Office. Should the City Administrative Office object to such employment or contracting refuse to give consent in writing to the Developer within three weeks of receipt of the disclosure, then Developer either shall not permit such employment or contracting as so disclosed, or shall file a letter with the City Clerk protesting the City Administrative Office's decision. In the event, said employment or contracting may continue until the City Council has decided the matter. The Developer shall comply with such Council decision. 16. Non-collusion. When the Developer calls for bids under paragraph 5b of this Agreement, he shall require a non-collusion affidavit to be executed by each bidder and submitted with the bid. The non-collusion affidavit shall be first subject to City approval, and at a minimum shall provide for the following: (a) That the signatory of the affidavit is the party making the bid; (b) That the bid is not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization, or corporation; (c) That the bid is genuine and not collusive or sham; (d) That the bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or that anyone shall refrain from bidding; 10 (e) That the bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or that of any other bidder, or to secure any advantage against the public body awarding the contract to anyone interested in the proposed contract; (f) That all statements contained in the bid are true; and (g) That the bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. 17. Notices. Any notices, payment or instrument required or permitted by this Agreement to be given or delivered to either party shall be deemed to have been received when personally delivered or 72 hours following deposit of the same in any United States Post Office in California, registered or certified mail, postage prepaid, addressed as follows: 11 �rw'' Developer: By: CAMINO REAL FASHION OUTLET, LTD GOLDEN WEST DEVELOPMENT CORP. 7627 Morro Road Atascadero, California 93423 City: City Engineer City of Atascadero 6500 Palma Avenue Atascadero, California 93422 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. CITY OF ATASCADERO, for itself and on behalf of Camino Real Improvement Project Assessment District 6y: City Manager ATTEST: I City Jerk Approved as to form: City Attorney i" t By: Approved as to content Richard K. Shannon Chief Financial Officer By: --- City Engin era mes H. 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