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HomeMy WebLinkAboutC2023-147 - 7/18/2023 - Approved DISTRIBUTION MAIN EXTENSION CONSTRUCTION AND REIMBURSEMENT AGREEMENT STATE OF TEXAS § COUNTY OF NUECES § This Water Distribution Main Extension Construction and Reimbursement Agreement ("Agreement") is entered into between the City of Corpus Christi ("City"), a Texas home-rule municipality, and Devonshire Custom Home,Inc,("Developer/Owner"),a Texas Corporation. WHEREAS, the Developer/Owner, in compliance with the City's Unified Development Code ("UDC"), has a plat, approved by the Planning Commission on November 13, 2019 to develop a tract of land, to wit: approximately 10.734 acres known as Westwood Heights Unit 4. Located on Sunny Dr., south of Leopard St as shown in the attached Exhibit 1, the content of such exhibit being incorporated by reference into this Agreement; WHEREAS, under the UDC, the Developer/Owner is responsible for construction of the distribution main extension ("Distribution Main Extension"); WHEREAS, it is to the best interest of the City that the Distribution Main Extension be constructed to its ultimate capacity under the City's applicable Master Plan; WHEREAS, Section 8.5.1.C.2. of the UDC authorizes the acceptance of applications to be eligible for reimbursement in the future when certain funds become fully available in the Distributions Main Trust Fund and are appropriated by the City Council; and WHEREAS, the Developer/Owner has submitted an application for reimbursement of the costs for installing the Distribution Main Extension, as shown in Exhibit 2, the content of such exhibit being incorporated by reference into this Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, the parties do covenant and agree as follows: 1. TRUSTEE LIABILITY. The City is executing this agreement as trustee of the Water Trust Fund pursuant to UDC §8.5. The City is acting as trustee to further its governmental functions of providing water and sewer service. Texas Constitution Article 11, Section 3 prohibits the City from becoming a subscriber to the capital of any private corporation or association, or make any appropriation or donation to the same, or in anywise loan its credit. As such, the City's participation as Trustee does not create a loan of its credit. Execution of this agreement constitutes a promise to pay only to the extent that the assets and future assets of the trust are sufficient for such purpose and it is expressly agreed that any judgment will only be satisfied out of the assets of the trust and not out of the City's assets. The City is excluded from personal liability. 2. REQUIRED CONSTRUCTION. Developer/Owner shall construct the Distribution Main Extension in compliance with the City's UDC, the City's Infrastructure Design Manual, and all local, state and federal laws, codes and regulations, in accordance with the plans and specifications submitted to the City's Development Services Department and reviewed and approved by the City's Development Services Engineer. SCANNED 3. PLANS AND SPECIFICATIONS. a. Developer/Owner shall contract with a professional engineer registered and licensed in the State of Texas, acceptable to the City's Development Services Engineer, to prepare and seal plans and specifications for the Distribution Main Extension, as shown in the attached Exhibit 3, the content of such exhibit being incorporated by reference into this Agreement, with the following minimum requirements: b. The plan must be in compliance with the City's master plans. c. The plans and specifications must comply with the City's Water Distribution Standards Detail Sheets and Standard Specifications. d. Before the Developer/Owner starts construction, the plans and specifications must be approved by the City's Development Services Engineer. 4. SITE IMPROVEMENTS. Prior to the start of construction of the Distribution Main Extension, the Developer/Owner shall acquire and dedicate to the City the required additional public utility easements ("Easements"), if any, necessary for the completion of the Distribution Main Extension. If any of the property needed for the Easements is owned by a third party and Developer/Owner is unable to acquire the Easements through reasonable efforts, then the City may use its powers of eminent domain to acquire the Easements. Developer will be responsible for cost of acquisition, payable from the reimbursement agreed to in this agreement. 5. PLATTING FEES. Developer/Owner shall pay to the City the required acreage fees and pro- rata fees as required by the UDC. 6. DEVELOPER/OWNER TO AWARD CONTRACT FOR IMPROVEMENTS. Developer/Owner shall award a contract and complete the Distribution Main Extension, under the approved plans and specifications, by 06/27/2024. 7. TIME IS OF THE ESSENCE. Time is of the essence in the performance of this contract. 8. PROMPT AND GOOD FAITH ACTIONS. The parties shall act promptly and in good faith in performing their duties and obligations under this Agreement. If this Agreement calls for review or inspections by the City, then the City's reviews or inspections must be completed thoroughly and promptly. 9. DEFAULT. The following events shall constitute default: a. Developer/Owner fails to engage a professional engineer for the preparation of plans and specifications by the 10th calendar day after the date of approval of this Agreement by the City Council. b. Developer/Owner's professional engineer fails to submit the plans and specifications to the City's Director of Engineering Services and to the Development Services Engineer by the 40th calendar day after the date of approval of this Agreement by the City Council. c. Developer/Owner fails to award a contract for the construction of the Distribution Main Extension, according to the approved plans and specifications, by the 70th calendar day after the date of approval of this Agreement by the City Council. Water Distribution Main Construction And Reimbursement Agreement Page 2 of 10 d. Developer/Owner's contractor does not reasonably pursue construction of the Distribution Main Extension under the approved plans and specifications. e. Developer/Owner's contractor fails to complete construction of the Distribution Main Extension, under the approved plans and specifications, on or before 06/27/2024. f. Either the City or the Developer/Owner otherwise fails to comply with its duties or obligations under this Agreement. 10. NOTICE AND CURE. a. In the event of a default by either party under this Agreement, the non-defaulting party shall deliver notice of the default, in writing, to the defaulting party stating, in sufficient detail, the nature of the default and the requirements to cure such default. b. After delivery of the default notice, the defaulting party has 15 business days from the delivery of the default notice ("Cure Period") to cure the default. c. In the event the default is not cured by the defaulting party within the Cure Period, then the non-defaulting party may pursue its remedies in this section. d. Should the Developer/Owner fail to perform any obligation or duty of this Agreement, the City shall give notice to the Developer/Owner, at the address stated in section 11, of the need to perform the obligation or duty and, should the Developer/Owner fail to perform the required obligation or duty within 15 days of receipt of the notice, the City may perform the obligation or duty, charging the cost of such performance to the Developer/Owner by reducing the reimbursement amount due to the Developer/Owner. e. In the event of an uncured default by the Developer/Owner, after the appropriate notice and Cure Period, the City has all its common law remedies and the City may: 1. Terminate this Agreement after the required notice and opportunity to cure the default; 2. Refuse to record a related plat or issue any certificate of occupancy for any structure to be served by the project; and/or 3. Perform any obligation or duty of the Developer/Owner under this Agreement and charge the cost of such performance to the Developer/Owner. The Developer/Owner shall pay to the City the reasonable and necessary cost of the performance within 30 days from the date the Developer/Owner receives notice of the cost of performance. In the event the Developer/Owner pays the City under the preceding sentence and is not otherwise in default under this Agreement, then the Agreement shall be considered in effect and no longer in default. f. In the event of an uncured default by the City after the appropriate notice and Cure Period, the Developer/Owner has all its remedies at law or in equity for such default. Water Distribution Main Construction And Reimbursement Agreement Page 3 of 10 11. FORCE MAJEURE. a. The term "force majeure" as employed in this Agreement means and refers to acts of God; strikes, lockouts, or other industrial disturbances; acts of public enemies; insurrections; riots; epidemics; landslides; lightning; earthquakes; fires; hurricanes; storms; floods; washouts; droughts; arrests; civil disturbances; explosions; or other causes not reasonably within the control of the party claiming the inability. b. If, by reason of force majeure, either party is rendered wholly or partially unable to carry out its obligations under this Agreement, then the party claiming force majeure shall give written notice of the full particulars of the force majeure to the other party within ten (10) business days after the occurrence or waive the right to claim it as a justifiable reason for delay. The obligations of the party giving the required notice, to the extent affected by the force majeure, are suspended during the continuance of the inability claimed but for no longer period, and the party shall endeavor to remove or overcome such inability with all reasonable dispatch. 12. NOTICES. a. Any notice or other communication required or permitted to be given under this Agreement must be given to the other party in writing at the following address: 1. If to the Developer/Owner: Devonshire Custom Homes, Inc Navid Zarghooni 2129 Airline Rd. Corpus Christi, Texas 78414 2. If to the City: City of Corpus Christi Attn: Director, Development Services Department 2406 Leopard Street 78401 P. O. Box 9277 Corpus Christi, Texas 78469-9277 with a copy to: City of Corpus Christi Attn: Assistant City Manager, Business Support Services 1201 Leopard Street 78401 P. O. Box 9277 Corpus Christi, Texas 78469-9277 b. Notice must be made by United States Postal Service, First Class mail, certified, return receipt requested, postage prepaid; by a commercial delivery service that provides proof of delivery, delivery prepaid; or by personal delivery. c. Either party may change the address for notices by giving notice of the change under the provisions of this section. Water Distribution Main Construction And Reimbursement Agreement Page 4 of 10 13. THIRD-PARTY BENEFICIARY. Developer/Owner's contracts with the professional engineer for the preparation of the plans and specifications for the construction of the Distribution Main Extension, contracts for testing services, and contracts with the contractor for the construction of the Distribution Main Extension must provide that the City is a third-party beneficiary of each contract. 14. PERFORMANCE AND PAYMENT BONDS. Developer/Owner shall, before beginning the work that is the subject of this Agreement, furnish a performance bond if the contract is in excess of$100,000 and a payment bond if the contract is in excess of$50,000. Bonds furnished must meet the requirements of Texas Insurance Code 3503, Texas Government Code 2253, and all other applicable laws and regulations. The performance or payment bond must name the City as an obligee. The bond must clearly and prominently display on the bond or on an attachment to the bond: (1)the name, mailing address, physical address, and telephone number, including the area code, of the surety company to which any notice of claim should be sent; or (2)the toll-free telephone number maintained by the Texas Department of Insurance under Subchapter B, Chapter 521, Insurance Code, and a statement that the address of the surety company to which any notice of claim should be sent may be obtained from the Texas Department of Insurance by calling the toll-free telephone number. 15. WARRANTY. Developer/Owner shall fully warranty the workmanship of and function of the Distribution Main Extension and the construction thereof for a period of one year from and after the date of acceptance of the facilities by the City's Director of Engineering Services. 16. REIMBURSEMENT. a. The maximum reimbursable amount pursuant to UDC §8.5.1. C.2. for the Distribution Main Extension less $10,595.79 lot/acreage fee credit is $36,731.71. Subject to the conditions for reimbursement from the City Developer Participation Funds and the appropriation of funds, the City will reimburse the Developer/Owner the reasonable actual cost of the Distribution Main Extension up to an amount not to exceed $36,731.71 as shown in the attached Exhibit 4, the contents of such exhibit being incorporated by reference into this Agreement. b. The City agrees to reimburse the Developer/Owner on a monthly basis upon invoicing for work performed. The submitted invoice shall be deemed administratively complete by the City prior to payment. The reimbursement will be made within 30 days from the date of the City's administrative approval of the invoice in accordance with state law. c. Cost-supporting documentation to be submitted shall include: 1. Summary of Costs and Work Performed Form provided by the Development Services Department 2. Contractor and professional services invoices detailing work performed 3. The first reimbursement request requires submittal of invoices for work performed. Future disbursements shall provide evidence of payment by the developer/owner through a cancelled check or bank ACH for the previous submittal. The final reimbursement request shall require evidence that all invoices to date have been paid. Water Distribution Main Construction And Reimbursement Agreement Page 5 of 10 d. To be eligible for reimbursement, the work must be constructed in a good and workmanlike manner, in accordance with the approved plans and specifications, and in compliance with the City's Infrastructure Design Manual, and all other local, state and federal laws, codes and regulations, and must have been inspected and accepted by the City. The final 5% of the total contract reimbursement amount will be held as retainage until such time the City issues acceptance of public infrastructure in accordance with Unified Development Code. e. In the event that this Agreement is terminated by the City as a result of an uncured default by the Developer/Owner and at a time when there has been a partial completion and/or partial payment for the improvements, then the City shall only reimburse the Developer/Owner for its costs that were legitimately incurred towards the completion of the improvements that have been inspected and accepted by the City up to the time that the uncured default occurred. 17. PAYMENTS, CREDITS AND DEFERRED REIMBURSEMENT. All payments, credits, priority of reimbursement, and deferred reimbursement shall be made in accordance with UDC §8.5. Developer/Owner understands and agrees that if funds are not available in the Water Distribution Main Trust Fund, that reimbursement will not be made until such funds are available, appropriated, and this Agreement has priority per UDC §8.5.1. C. 18. INDEMNIFICATION Developer/Owner covenants to fully indemnify, save and hold harmless the City of Corpus Christi, its officers, employees, and agents, ("indemnitees") against any and all liability, damage, loss, claims, demands suits and causes of action of any nature whatsoever asserted against or recovered from city on account of injury or damage to person including, without limitation on the foregoing, workers compensation and death claims, or property loss or damage of any other kind whatsoever, to the extent any injury, damage, or loss may be incident to, arise out of, be caused by, or be in any way connected with, either proximately or remotely, wholly or in part, the Developer/Owner's failure to comply with its obligations under this agreement or to provide city water service to the development, including injury, loss, or damage which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with the construction, installation, existence, operation, use, maintenance, repair, restoration, or removal of the public improvements associated with the development described above, including the injury, loss or damage caused by the sole or contributory negligence of the indemnitees or any of them, regardless of whether the injury, damage, loss, violation, exercise of rights, act, or omission is caused or is claimed to be caused by the Water Distribution Main Construction And Reimbursement Agreement Page 6of10 contributing or concurrent negligence of indemnitees, or any of them, but not if caused by the sole negligence of indemnitees, or any of them, unmixed with the fault of any other person or entity, and including all expenses of litigation, court costs, and attorneys fees, which arise, or are claimed to arise, out of or in connection with the asserted or recovered incident. This indemnity specifically includes all claims, damages, and liabilities of whatever nature, foreseen or unforeseen, under any hazardous substance laws, including but not limited to the following: (a) all fees incurred in defending any action or proceeding brought by a public or private entity and arising from the presence, containment, use, manufacture, handling, creating, storage, treatment, discharge, release or burial on the property or the transportation to or from the property of any hazardous substance. The fees for which the developer/owner shall be responsible under this subparagraph shall include but shall not be limited to the fees charged by (i) attorneys, (ii) environmental consultants, (iii) engineers, (iv) surveyors, and (v) expert witnesses. (b) any costs incurred attributable to (i) the breach of any warranty or representation made by Developer/Owner in this agreement, or (ii) any cleanup, detoxification, remediation, or other type of response action taken with respect to any hazardous substance on or under the property regardless of whether or not that action was mandated by the federal, state or local government. This indemnity shall survive the expiration or earlier termination of the agreement. 19. ASSIGNMENT OF AGREEMENT. This Agreement or any rights under this Agreement may not be assigned by the Developer/Owner to another without the written approval and consent of the City's City Manager. 20. DISCLOSURE OF INTEREST. Developer/Owner agrees. in compliance with the Corpus Christi Code of Ordinance Sec. 2-349, to complete, as part of this Agreement, the Disclosure of Interests form attached hereto as Exhibit 4. Water Distribution Main Construction And Reimbursement Agreement Page 7 of 10 21. EFFECTIVE DATE. This Agreement becomes effective and is binding upon and inures to the benefit of the City and the Developer/Owner and their respective heirs, successors, and assigns from and after the date of final execution by all parties. 22. DEDICATION OF DISTRIBUTION MAINS. Upon completion of the construction, dedication of Distribution Main Extension will be subject to City inspection and approval. 23. CERTIFICATE OF INTERESTED PARTIES. Developer/Owner agrees to comply with Texas Government Code section 2252.908 and complete Form 1295 Certificate of Interested Parties as part of this agreement. Form 1295 requires disclosure of"interested parties"with respect to entities that enter contracts with cities. These interested parties include: (1) persons with a "controlling interest" in the entity, which includes: a. an ownership interest or participating interest in a business entity by virtue of units, percentage, shares, stock or otherwise that exceeds 10 percent; b. membership on the board of directors or other governing body of a business entity of which the board or other governing body is composed of not more than 10 members; or c. service as an officer of a business entity that has four or fewer officers, or service as one of the four officers most highly compensated by a business entity that has more than four officers. (2) a person who actively participates in facilitating a contract or negotiating the terms of a contract with a governmental entity or state agency, including a broker, intermediary, adviser or attorney for the business entity. Form 1295 must be electronically filed with the Texas Ethics Commission at https://www.ethics.state.tx.us/whatsnew/elf info form1295.htm. The form must then be printed, signed, notarized and filed with the City. For more information, please review the Texas Ethics Commission Rules at https://www.ethics.state.tx.us/legal/ch46.html. 24. CONFLICT OF INTEREST. Developer/Owner agrees to comply with Chapter 176 of the Texas Local Government Code and file Form CIQ with the City Secretary's Office, if required. For more information and to determine if you need to file a Form CIQ, please review the information on the City Secretary's website at http://www.cctexas.com/government/city- secretary/conflict-disclosure/index 25. AUTHORITY. All signatories signing this Agreement warrant and guarantee that they have the authority to act on behalf of the entity represented and make this Agreement binding and enforceable by their signature. Water Distribution Main Construction And Reimbursement Agreement Page 8 of 10 �3t EXECUTED IN ONE ORIGINAL this I day of Nkyt 1 , 20 d a ATTEST: CITY r • RPUS CHRISTI L..:I& Rebecca Huerta Abe . ' ;ymond Ill City Secretary Dire or . Development Services 1Q .,.IIIITHI 'IZE APPROVED AS TO LEGAL FORM: iy ('O8NCIL STATE OF I eyA s § COUNTY OF ve_C&5 § This instrument was acknowledged before me on 5� g � $'�" J- 2023, by Albert J. Raymond III, Director of Development Services for a City of Corpus Christi, Texas. �,;ta;'Pom; JOANN SALINAS _� _Notary Public,State of Texas L �n i "D Comm.Expires 03-02-2026 '11 Notary ID 133621810 Anna Nota "ublic's Signature fujjk ZO— Z Buck Brice (Date) Assistant City Attorney Water Distribution Main Construction And Reimbursement Agreement Page 9 of 10 Devonshire Custom Homes, Inc. 2129 Airline Rd Corpus Christi, Texas 78414 By: - Navid Zarghoo i President STATE OF I,U✓1C § COUNTY OF ) OAS § This instrument was acknowledged before me on J UV\k `-Q , 2023, by Navid Zarghooni, President of Devonshire Custom Homes, Inc., a Texas Corporation, on behalf of said corporation. \��•`` \,.\\140J0..„/// \ \.mo1 /41/(.A w P V . .9 '�� `�:7Q Notary Public s Si natur- 13*: co ST• AT E p•ti• o`y .,/O 121*.•' "////,iIiEXP.'�9`��' Water Distribution Main Construction And Reimbursement Agreement Page 10 of 10 a 5 W a geas 11 it P P, g § �i ` a ekm Ra a g § $ g lx : l ! © . • _1= a- sue. 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Reimbursement Agreement Application r yasT Development Services Department Submit the Application to: contractsandagreements(o)cctexas.com Mail to:City of Corpus Christi Development Services 2406 Leopard St.Suite 100 Corpus Christi,Texas 78408 Date: 5 - 2 , 22 1 \ r--0, ,„-\-) U Approved Plat Name: W Q.�aJ \ & ) M l Type of Public Improvements: °` ; sd'`� � \ 'Ask-- Ownership and authorized signatories to enter into the agreement: Requested duration of agreement: Z' Months Point of Contact Information: Contact Name: t o a 2_01/4(-5\„0,) „, Contact Number: 341' C\I4 ,�tici$ Name of Company Entering into the agreement (L.L.C.; L.P., Inc.): De,J itYcI' A ; Cu s-k-ow -s i ... Address: -2A'2_C\ kA•t 4, City: C • C • State: 1 x ZIP: — Lh ik- Phone Number: —j(R • ciLN '532_0(8 The items listed below are required before an application can be processed: 1) Application for reimbursement per UDC Section 8.5.1 or 8.5.2 2)I I $535.00 application fee for new agreements and addendums 3) Planning Commission approved plat (Final or Master Preliminary) 4) Cost estimate for project from a registered engineer 5) Public improvement plans or design memorandum 6) Warrantee Deed for the property associated with the project 7) r Disclosure of Interest Form 8) Form 1295 W-9 F , and a Corporate Resolution ,,;-----/e' c:(5:36ke4 Applicant's Si9 natur• Title City of Corpus Christi I Form No: DSD-3016 Rev.3.31.2020 Page 1 of 2 . . . 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Box 6397 Corpus Christi,TX 78466-6397 18073-PCE-WTR 11/18/22 WESTWOOD HEIGHTS PRELIMINARY WATER REIMBURSEMENT ESTIMATE WATER ITEMS,REIMBURSABLE BY CITY QUANTITY UNIT AMOUNT 1 8"TAPPING SADDLE&6"TAPPING GATE VALVE W/BOX 2 EA 7,900.00 15,800.00 2 6"PVC PIPE 233 LF 250.00 58,250.00 3 PAVEMENT PATCHING 1 LS 12,000.00 12,000.00 TOTAL WATER ITEMS $86,050.00 NOTE: PRICES SHOWN AS FURNISHED BY DEVELOPER 10%ENGINEERING,SURVEYING,&TESTING 8.605.00 tE OF Tfr SUBTOTAL 94,655.00 sieegti *•r :* LESS WATER LOT FEE -7,280.00 *t Nom M.WELSH fi % LESS WATER PRO-RATA FEE -3,315.79 e0. 38248 Jar 4:1,• sny.--t,0 TOTAL AMOUNT REIMBURSABLE $84,059.21 t7N111 Page 1 of 1