HomeMy WebLinkAboutOregon Potato Water Extension AgreementWATER SYSTEM EXTENSION AGREEMENT
THIS WATER SYSTEM EXTENSION AGREEMENT is entered into this 0 day
of 014, by and between Oregon Potato Company, Inc. a Corporation, (hereinafter
referred to as "Owner "), and the City of Pasco, Washington, a Washington Municipal
Corporation (hereinafter referred to as "City "), for the purpose of extending water system
improvements for the benefit of the Owner's property.
WHEREAS, Owner has certain real property adjacent to Commercial Avenue Loop
(Old Kahlotus Highway), and said real property is situated within the limits of the City of Pasco;
and
WHEREAS, Owner desires to have City of Pasco water service extended to the
developed properties for domestic use; and
WHEREAS, Owner is committed to constructing a water system line extension in order
to provide consistent water flows to the proposed property as described in Exhibit A, and then
dedicate the waterlines and appurtenances to the City; and
WHEREAS, the City of Pasco possesses the capacity to provide water utility services to
citizens and real properties within its municipal boundaries and its urban growth boundaries; and
WHEREAS, the City of Pasco's long range water plan provides for the systematic
extension of water utilities throughout the City's urban growth area; and
WHEREAS, the parties desire, by this cooperation agreement, to jointly participate in
the cost of the waterline construction that provides benefits to all parties and their respective
properties.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the
parties agree as follows:
1. OWNER OBLIGATIONS. Owner shall:
A. Provide the complete design of the proposed water system extension, as
described in Exhibit A and Exhibit B, by a Professional Engineer registered to practice
Engineering in the State of Washington. The water system design shall include pipe and
all appurtenances from a connection point with the City's existing system at the south end
of Commercial Avenue and then extending approximately 1,422 LF north along
Commercial Avenue Loop. The design of the water system extensions shall be in
accordance with the latest City of Pasco requirements and standards including any
adopted or referenced state and federal requirements and standards. The engineering
design, construction plans and specifications shall be submitted to the City for review
and/or approval at the 60% and Final stages of design.
Water System Extension Agreement — Oregon Potato Company, Inc. Page 1
January 8, 2014
B. From the design, as approved by the City, construct the system extension
including all valves, hydrants and appurtenances in accordance with applicable City, state
and federal standards and requirements.
C. Be responsible for the cost of the design of the water system extension,
plan review fees and construction inspection fees and testing.
D. Be responsible for the costs associated with the furnishing of materials
and labor, and construction of the equivalent of a 10 -In. diameter pipeline including
valves, fittings, hydrants and associated appurtenances necessary to provide adequate
domestic water service to the proposed development prior to the measurement of actual
quantities and reimbursement from the City.
E. Shall at its own cost and efforts secure all reviews, approvals and permits
from any and all applicable jurisdictions, and pay all associated fees.
F. Shall execute all deeds, documents, permits, and checklists necessary for
the permitting and conveyance of property and construction of the system extension
described above and the performance of this Agreement.
2. CITY OBLIGATIONS. City shall:
A. Process in its usual course, Owner's applications for plan review and
permits associated with the water system extension project as described above and in
Exhibit A, in a timely manner.
B. Provide project design criteria, and determine the size of pipe, spacing of
isolation valves and hydrants and other appurtenances required to maintain the integrity
of the City's water system.
C. Provide timely reviews of the engineering design, construction plans and
specifications at the 60% and Final submittals.
D. Provide inspection services during the course of construction consistent
with the level of effort utilized on other capital and development projects within the City,
or as may be required to ensure the required quality of the completed work.
E. Be responsible for reimbursement of the incremental increase in cost
between a 10 -Inch pipe system and a 16 -Inch pipe system, as estimated in the
construction cost estimate prepared by Sharpe & Preszler Construction Company, Inc.,
dated November 4, 2013, and included in Exhibit A. The City's share of the construction
costs shall not exceed $83,744, including Washington State Sales Tax..
F. Upon satisfactory completion of the improvements described above,
accept the dedication of the water system improvements as described in Exhibit A and
Water System Extension Agreement — Oregon Potato Company, Inc. Page 2
January 8, 2014
Exhibit B, and by Council resolution accept ownership thereof, and maintenance and
operation of the improvements thereafter.
4. TERM. This Agreement shall be effective commencing on theta day of
1
1 ll= 2014, and all improvements, conveyances and obligations of the parties shall be
complete on or before July 1, 2014. The Agreement shall terminate on August 1, 2014, or with
the completion and acceptance of the water system extension improvements, whichever is
sooner.
5. AUTHORITY TO APPROVE AGREEMENT. The parties represent and
warrant that all steps necessary for the approval of this Agreement have been completed by:
A. Oregon Potato Company, Inc. by its President.
B. City of Pasco by the Pasco City Council.
The officers signing below are authorized to do so and that the execution of this Water
System Extension Agreement is valid and binding for all purposes.
6. DISPUTE RESOLUTION. In the event of a dispute between the parties
regarding the interpretation, breach or enforcement of this Agreement, the parties shall first meet
in a good faith effort to resolve the dispute by themselves or with the assistance of a mediator.
The remaining dispute shall be resolved by arbitration pursuant to RCW 7.04A, the Mandatory
Rules of Arbitration (MAR), with all parties waiving the right of a jury trial upon de novo
review, with the substantially prevailing party being awarded its reasonable attorney fees and
costs against the other.
7. INDEMNITY. The Owner shall assume the risk of, be liable for, and pay for
damage, loss, cost and expense of any party arising out of the performance of this Agreement,
except that caused by negligence and/or willful misconduct solely of the City and its employees
acting within the scope of employment. The Owner shall hold harmless from and indemnify the
City against all claims, losses, suits, action, cost, counsel fees, litigation costs, expenses,
damages, judgments, or decrees by reason of damage to any property of business, and /or any
death, injury or disability to or of any person or party, including any employee, arising out of or
suffered, directly or indirectly, by reason of or in connection with the performance of the
Contract or any act, error or omission of the Owner, Owner's employees, agents, contractors or
subcontractors, whether by negligence or otherwise. The Owner's obligation shall include but
not be limited to investigation, adjusting, and defending all claims alleging loss from action,
error or omission or breach of any common law, statutory or other delegated duty of the Owner,
Owner's employees, contractors, agents or subcontractors.
8. GENERAL PROVISIONS.
A. This Water System Extension Agreement constitutes the entire agreement
between the parties, and no prior oral or written agreement shall be valid, and any
modifications of this Agreement must be in writing signed by all parties.
Water System Extension Agreement — Oregon Potato Company, Inc. Page 3
January S, 2014
B. This Water System Extension Agreement shall be binding on the parties,
and their heirs, successors and assigns.
C. For the purpose of this Agreement, time is of the essence.
9. MUTUAL COOPERATON AND FURTHER AGREEMENTS. The parties
agree to cooperate in good faith, with regard to each and every aspect required for the
completion of the construction of the roadway which is the object of this Agreement, and the
transfer of property, and to further sign all documents, deeds and permits reasonably necessary to
accomplish the purposes of this Agreement.
DATED this day of '2014.
City Manager
OREGON/POTATO- CQMPANY, INC.
UI UL Prest ent
Water System Extension Agreement — Oregon Potato Company, Inc. Page 4
January 8, 2014
Memo
To:
Mike Pawlak, P.E., City Engineer
From:
Kate Thompson, P.E., Associate Engineer
Date:
November 22, 2013
Re:
Commercial Avenue Waterline Cost Proration
Public Works Department
Engineering Division
The Commercial Avenue Waterline which was installed by the City earlier this summer, is going to be
extended approximately 1,422 LF by Carson Ag and the Oregon Potato Company. These two property
owners do not own all of the land fronting the waterline expansion. Powell- Christensen Inc. and BPA also
own land fronting the proposed waterline extension.
The proposed water usage by Carson Ag and the Oregon Potato Company will necessitate a 10 -In water
main. The existing main which will be extended is 16 -In., which is what the City would like to have continued
with the extension.
The proposal being considered would have the City pay the upsize from the 10 -In. main to the 16-In. main,
and pay for the main fronting BPA and Powell Christensen Inc. BPA is not connecting to the line at this time
and Powell - Christensen's property fronts along the previously installed water main. The frontages and
percentage of total frontage for the project length for each of the property owners is shown in the table below.
Property Owner
Side of Road
Frontage (LF)
%
POWELL - CHRISTENSEN INC
W
1000
36%
OREGON POTATO COMPANY
W
370
13%
CARRSON AG LLC
E
1270
46%
BPA
E
147
5%
The above frontages are based on ending the water main at the northern property line for Carson Ag, which is
approximately 100' south of the Northern property line for the Oregon Potato Company. A deferral agreement
would be needed with Oregon Potato Company for the remaining 100' of waterline for their frontage.
Carson Ag and Oregon Potato Company provided cost estimates from their contractor to install a 10 -In water
main and a 16 -In water main. The difference in cost between the 16 -In. main and the 10 -In. main is
approximately $39,711. The City would be responsible for this difference plus 41 % of the cost of the 10 -In.
line (to account for the BPA and Powell Christensen Inc. frontages). This would make the City's total
contribution $83,744including 8.6% sales tax. Then the Oregon Potato Company would pay for 13% of the
cost of the 10 -In main, which is approximately $12,879 including 8.6% sales tax. Carson Ag would be
responsible for the remaining 46% of the cost of the 10 -In. main, approximately $45,571 including sales tax.
This breakdown is shown in more detail on the attached spreadsheet.
EXHIBIT A
a
m
2
x
w
0
N
U
Y d
� m
c a
m c
v @
c N
J v
C i
_ D
iD O
t is
� N
Y �
c c
J
C �
o d
ti
v
L C
YC
L
O C
w O)
O) H
fl.L
V
C
� 3
c
v a
_v o
� N
� v
O) �
YR
c
v o
a w
' v
u L
c „
� O
N W
0
V C
O J
rya =
d
O O
N
v
Y
N
a
a
L
Y
0
c
0
w
Y
w
N
c
O
ti
t
`o
u
L
v
V
N
O
u
Q
c
O
`m
u
N M
m
M
rn
01
Ot
r
N
N
O
O
ti
N
0
ti
ti
ti
m
m
m
.ti
a
Ol
Ol
lO
N
o
o
N
N
a
N
v
M
1!1
a
m
N
V
c
�
m
to
m
V1
o
N
m
n
i'
N
ry
W
W
O
o0
d
fl_
N
O
V
V
o
O
rn
C
O
jp
YO
U
d
�
N
C
O
C
p�
V
O
•'T
ti
N
lD
n
c
LJ
r
n
N
n
M
W
�
u
�
w
v
m
m
v
w
N
O1
W
�
a
03
v
a
m
O1
v
n
c
�
O
m
L
-
N
c
O
i
Y
v
C
m
N
N
�
U
J
G
�
�
0
ti
a
W
N
O
C
V
i
i
a
Y
N
C
i0
U
N
d
N
E
p
O
H
H
Q
f
N
O
V
n
d
0
N
U
Y d
� m
c a
m c
v @
c N
J v
C i
_ D
iD O
t is
� N
Y �
c c
J
C �
o d
ti
v
L C
YC
L
O C
w O)
O) H
fl.L
V
C
� 3
c
v a
_v o
� N
� v
O) �
YR
c
v o
a w
' v
u L
c „
� O
N W
0
V C
O J
rya =
d
O O
N
v
Y
N
a
a
L
Y
0
c
0
w
Y
w
N
c
O
ti
t
`o
u
L
v
V
N
O
u
Q
c
O
`m
u
N M
EXHIBIT A
LSharpe & Preszler Construction Co., Inc.
605 E. Kennewick Ave. Lic.# SHARPPC2801F Telephone 1- 509 -586 -1138
Kennewick, WA 99336 Fax 1- 509 -586 -9141
November 4, 2013
Tim Tippett
Oregon Potato Company
PO Box 3110
Pasco, WA 99302
Dear Tim,
Listed below is the breakdown Mike with the City of Pasco was looking for:
16" Water Line
3 EA - Conned to existing water line
1,422 LF - 16" CL -52 water line
1 EA - 16" restrained joint tee
4 EA - 16" restrained joint butterfly valve
1 EA - 16" restrained joint cap
1 EA - 16" restrained joint 11%'
1 EA - 16" x 10" restrained joint tee
1 EA - 16" x 8" restrained joint tee
1 EA - 16" blowoff assembly
LS - Traffic control
4 EA - Fire hydrants
16 EA - Guard posts
10" Water Line
Same as above with 10" pipe, fittings, hydrants, guard post
Without tax $130,934,00
Without tax $ 91,223.00
If we were to terminate the 16" water line at sta 13 +55, the cost savings to delete 92 lineal feet of 16"
ductile iron and asphalt patching at the northern driveway would be $6,164.00.
If you have any questions, please contact me at our office.
Sincerely,
Brian Preszler
bp:hf