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HomeMy WebLinkAboutJ&J Kelly Construction Sewer System Extension AgreementAFN # 1955974 AGREE 02/09/2022 01:43 PM 11 Page(s) $213.50 Matt Beaton, Auditor Franklin Co., WA FILED FOR RECORD AT REQUEST OF: City of Pasco WHEN RECORDED RETURN TO: City of Pasco, Washington 525 North 3"d Avenue Pasco WA 99301 Tax Parcel No.: 118621028 Legal Description: See Exhibit A 3.2 -1i -dl SEWER SYSTEM EXTENSION AGREEMENT THIS SEWER SYSTEM EXTENSION AGREEMENT is entered into this I day of r� b , 2022, by and between J&J Kelly Construction, Inc. hereinafter referred to as "Developer", and the City of Pasco, Washington, a Municipal Corporation, hereinafter referred to as "City" for the purpose of extending sewer system improvements for the benefit of the properties to be developed by the Developer and to benefit properties to the north with a sewer to discharge from a future sanitary sewer lift station to serve the Riverview area. WHEREAS, the Developer owns or controls certain real property specifically described in Exhibit A of this Agreement, and said real property is situated inside the City's municipal boundaries; and WHEREAS, the Developer has received preliminary plat approval with the City to subdivide the property for fifty-six (56) residential lots; and WHEREAS, the density of the proposed subdivision is consistent with the City's adopted Comprehensive Land Use Plan; and WHEREAS, as a condition of preliminary plat approval, Developer is required to connect to City sewer, and the Developer would need to construct an 8 -inch diameter sanitary sewer connection to serve fifty-six (56) lots; and WHEREAS, the City has an interest in upsizing the developer -proposed sanitary sewer improvements to serve the surrounding community; and Riverview East Lift Station - Sewer System Extension Agreement Page 1 of 11 WHEREAS, the City Council previously approved through adoption of the City's Comprehensive Sanitary Sewer Plan and its biennial budget, the construction of a sanitary sewer lift station and associated piping to serve a portion of the Riverview Area, encompassing the Developer's and surrounding property with sewer; and WHEREAS, the City recently completed the design of a sanitary sewer lift station and appurtenant force main piping near the intersection of Road 52 and Pearl Street that will accommodate sanitary sewer flows from approximately 240 Equivalent Residential Units (ERU), which sewer lift station would be available to serve the aforementioned plat provided a gravity sewer line is extended from said plat to said lift station; and WHEREAS, the cost of the City's lift station and force main project is estimated at approximately $1.2 million and the Developer's pro rata reimbursement share of the facility costs, based on ERUs is approximately 23%; and WHEREAS, once the aforementioned lift station and associated force main piping is complete, there will be adequate sanitary sewer system available for Developer's project and other future development activity; and WHEREAS, the City has identified certain benefits to the City that will be received by the construction of the facilities identified herein, to include a benefit to surrounding areas including connection to a future sanitary sewer lift station to service the Riverview area to achieve residential densities consistent with the City's adopted Comprehensive Land Use Plan; and WHEREAS, the City wishes to waive the pro rata reimbursement share of the lift station and force main costs in exchange for the construction and dedication of valuable 12 -inch diameter sanitary sewer infrastructure necessary to serve future urban infill projects in the City's Urban Growth Area; and WHEREAS, the Developer is willing to construct and dedicate a 12 -inch diameter sanitary sewer gravity main and associated appurtenances from Developer's subject property to City's proposed sanitary sewer lift station (hereinafter referred to as Gravity Sewer Improvements) as described in this Agreement upon the expectation that the City will accept the same and permit Developer's 56 lots to be connected to the municipal sanitary sewer system, consistent with the terms of this Agreement. The City will accept the Gravity Sewer Improvements for the project, on the terms and conditions set forth in this Agreement, which the City deems necessary to protect the health, safety, and welfare of the public, and that the costs of constructing the Gravity Sewer Improvements are deemed the Developer's pro rata share of the cost of City's lift station and force main project as agreed upon per the terms of this Agreement; and Riverview East Lift Station - Sewer System Extension Agreement Page 2 of 11 WHEREAS, this Agreement is made upon the basis of the foregoing provisions, and in consideration of the mutual promises and covenants herein, and the mutual benefits to be derived by the parties therefrom. NOW, THEREFORE, the parties agree as follows: 1. Definitions. The term "utility" means sanitary sewers and facilities, complete with appurtenances. 2. Developer Obligations. A. Developer shall be required to construct certain utility system improvements (the Gravity Sewer Improvements), outside of those required for the on-site development of the plat, as set forth in Exhibit B at its sole cost and expense. B. Developer shall hire a licensed contractor for the construction of the Gravity Sewer Improvements. Developer shall ensure that its contractor obtains all required permits, easements, and agreements for the project. 3. Gravity Sewer Improvements. The Developer agrees to construct and pay all costs associated with permitting, inspecting, and constructing the Gravity Sewer Improvements from the southeast corner of Developer's plat approximately 850 feet south to the proposed sanitary sewer lift station to be located on City property near the southeast corner of Road 52 and Pearl Street. The Developer shall construct the Gravity Sewer Improvements in conformity with all the City's development standards and specifications. 4. City Obligations. Upon Developer's completion of the Gravity Sewer Improvements, the City agrees to credit Developer a proportionate share of the cost of the sanitary sewer lift station near the southwest corner of west Pearl Street and Road 52. The Developer's credit shall satsify the Developer's obligation for financial participation in the cost of the lift station. Nothing herein shall be construed as requiring the City to provide any money for construction of the Gravity Sewer Improvement project. Final completion of the Gravity Sewer Improvements by Developer and acceptance by the City per the provisions of this Agreement shall be required as a condition precedent prior to any credit to Developer. 5. Annroval of Plans. Developer shall not begin construction of the Gravity Sewer Improvements until the City has approved the plans and specifications, and until proper permits have been issued. Riverview East Lift Station - Sewer System Extension Agreement Page 3 of 11 6. Construction Chanes and Proiect Close -Out. If, during construction of the Gravity Sewer Improvements by Developer, construction changes are necessary due to circumstances unforeseen during the design of the improvements and not addressed on the engineering drawings or in the project specifications, Developer and City agree to meet to discuss if equitable settlement of costs associated with said changes are necessary. If it is determined by the City that equitable settlement of costs is warranted, the City agrees to reimburse Developer said agreed upon settlement within 30 days. Developer shall be responsible for any and all reasonably foreseeable costs including, but not limited to, increased material and labor costs. Developer shall keep detailed financial records to support project costs and shall provide such records to the City as a condition precedent to any equitable adjustment. When the Developer has substantially completed the Gravity Sewer Improvements, it shall notify the City of such completion in writing and request a preliminary inspection prior to the City taking ownership of the sewer and prior to any further connections to the City sanitary sewer system by the Developer. "Substantial Completion" shall mean that the Gravity Sewer Improvements can perform their intended function and are ready to be conveyed for that purpose, notwithstanding that certain finish elements of the work such as, but not limited to, final restoration of landscaping and irrigation (if any), may remain for completion subsequent to conveyance. Whether "Substantial Completion" has occurred shall be at the sole discretion of the City. The City shall schedule the inspection to occur within fourteen (14) days of receiving such notice. Within fourteen (14) days after the inspection, the City shall provide the Developer with a written list of any items that need completion or correction to conform to the approved Plans and Specifications and to this Agreement. The Developer shall promptly complete the listed items, at which time the Developer may initiate the conveyance of the Sewer Improvements to the City per Section 7 of this Agreement. The failure of the City to act within the time period set forth in this Section shall not alleviate the obligation of Developer to construct the Sewer Improvements in accordance with the approved plans and specifications, nor constitute a waiver of any rights on the part of the City. 7. Conveyance to the City. Upon completion of the Gravity Sewer Improvements, and completion of the Construction Close -Out process set forth in Section 6, Developer shall offer to convey ownership of the Gravity Sewer Improvements to the City through a Bill of Sale. Upon Developer's offer to convey ownership of the Gravity Sewer Improvements to the City, the City may accept the same by City Manager Riverview East Lift Station - Sewer System Extension Agreement Page 4 of 11 approval; provided, that before the City shall give final approval to the acceptance of such Gravity Sewer Improvements, the Developer shall demonstrate the following: A. Developer has conveyed required Rights -of -Way to the City and/or secured and recorded all required easements, in a form acceptable to the City Attorney, providing a warranty that the grantor has the right to grant such easement, and will indemnify and defend the City against all claims that the grantor does not have such right. B. Developer has furnished the City with an affidavit, in a form acceptable to the City, stating there are no liens against the property or improvements. C. Developer has furnished the City with documents of conveyance of ownership of the Gravity Sewer Improvements, in a form acceptable to the City Attorney, providing a warranty that the Developer has the right to convey such improvements and will indemnify and defend the City against all claims that the Developer does not have such right, and further providing that the Improvements will be free of defects in material and workmanship for a period of one (1) year from the date of the City's final acceptance of the Gravity Sewer Improvements and release of associated performance bonds, and that the City engineer shall be solely responsible for determining the existence of such defects. If the conveyance includes one or more incomplete work elements subject to completion under a performance bond or bonds issued pursuant to this Agreement, then the conveyance documents shall address for each incomplete element the timing and criteria for completion and initiating the warranty period. D. Developer has submitted to the City, in a form acceptable to the City Engineer, Final Drawings or "As-Builts" meeting City Development Standards. E. Developer has paid all permit fees and all inspection costs required to be paid under this Agreement. F. Developer has provided the City with a maintenance or warranty bond in the amount of [insert appropriate amount here] indemnifying the City from any and all claims, damages, or injuries caused directly or indirectly by defects in material or workmanship of the completed project during the one-year warranty period. Riverview East Lift Station - Sewer System Extension Agreement Page 5 of 11 8. Connection to City's Public Utility System. After completion, acceptance and conveyance of the Gravity Sewer Improvements, the City shall permit connection of the Gravity Sewer Improvements to the City's sanitary sewer lift station. All public utilities shall be tested per methods established in the City's standards and specifications, WSDOT Standard Specifications, AWWA test methods, and as described in the pre -construction meeting minutes. Procedures for and timing of the various tests for different utilities shall be determined in the pre -construction meeting and recorded in the minutes of such meeting. 9. Insurance. The Developer or its contractor shall maintain in full force and effect during the time this Agreement is in effect public liability insurance, covering bodily injury and properly damage, which insurance shall name the City and its employees and contracted consultants as additional insureds. Such insurance shall provide limits of liability of $500,000 per person and $1,000,000 per occurrence for bodily injury and $100,000 per person and $300,000 per occurrence for property damage. 10. Indemnification. The Developer shall defend, indemnify, and hold harmless the City, its officers, officials, agents, employees, and volunteers from any and all claims and causes of action, including, but not limited to, actions of law or administrative proceedings for all injuries to persons or damages to property, and all losses, damages, demands, suits, judgments, including attorney fees, arising out of, or as a result of, or in connection with the work performed under this Agreement or materials used, and caused or occasioned in whole or in part by reason of errors, acts or omissions of the Developer, its contractors or suppliers in the performance of this Agreement, except to the extent any such injuries and damages are caused by the sole negligence of the City, its officers, employees, agents, and volunteers. Should a Court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injuries or damages to property caused by or resulting from the concurrent negligence of the Developer or its contractors, and the City, its officers, employees, agents and volunteers, the Developer's liability and obligation to defend hereunder shall only be the proportionate extent of the Developer's negligence. It is further agreed that the indemnification provided herein constitutes the Developer's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parries, and the provisions of this section shall survive the expiration or termination of this Agreement. No liability shall attach to the City by reason of entering into this Agreement except as expressly provided herein. Riverview East Lift Station - Sewer System Extension Agreement Page 6 of 11 The indemnification provisions herein shall survive termination or expiration of this agreement 13. Notices. All notices required to be given under this Agreement shall be in writing and shall be deemed served when mailed via certified mail, return receipt requested, to the attention of the individual or position identified below. The parties may, upon mutual agreement, determine to accept notice via e-mail. City of Pasco: City Engineer 525 North 3rd Pasco, WA 99301 E -Mail: fordd@pasco-wa.gov Developer: Jeff Kelly J&J Construction, Inc. 1802 Road 76 Pasco, WA 99301 E -Mail: kellyfamily87@gmail.com 14. Term. This Agreement shall be effective commencing on the date of final execution and all improvements, conveyances, and obligations of the parties shall be complete on or before December 31, 2022. The Agreement shall terminate upon completion and acceptance of the utility system extension improvements. 15. Authority to Approve Agreement. The parties represent and warrant that all steps necessary for the approval of this Agreement have been completed by: A. Developer: B. Com: Entity: J&J Kelly Construction, Inc. City of Pasco, Washington Name: Jeff Kelly Name: Dave Zabell Title: Owner Title: City Manager The officers signing below are authorized to do so and the execution of this Sewer System Extension Agreement is valid and binding for all purposes. 16. Dispute Resolution. Should any dispute arise concerning the enforcement, interpretation, breach or any other term of this Agreement, the parties shall first meet in a good faith effort to resolve the dispute. In the event the dispute cannot be resolved by agreement of the parties or by mediation, the dispute shall be resolved by binding arbitration pursuant to RCW 7.04A, as amended, and the Mandatory Rules of Arbitration (MAR). Venue shall be placed in Franklin County, Washington; the laws of the State of Washington shall apply; and the substantially prevailing party shall be entitled to its reasonable attorney fees and costs. Riverview East Lift Station - Sewer System Extension Agreement Page 7 of 11 17. Governing Law. This Agreement is entered into under the laws of the State of Washington, and the parties intend that Washington law shall apply to the interpretation hereof. 18. Severability. In the event a non -material provision of this Agreement is declared invalid, unconstitutional, or otherwise unenforceable, such provisions hereof as are not affected by such declaration, shall remain in full force and effect. 19. Amendment. This Agreement may be modified only by written instrument duly executed by all parties. 20. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. 21. Agreement Construction. This Agreement sets forth the entire understanding and agreement of the parties relating to the subject matter hereof. This Agreement shall be construed as a whole. The captions and headings herein are for convenience only and shall not be relied upon or used to interpret/construe this Agreement or any portion thereof. Each party signing this Agreement acknowledges that they participated in the drafting of this Agreement and, as such, this Agreement shall not be presumptively interpreted/construed in favor of nor against any particular party, but rather this Agreement shall be given an objectively fair and reasonable interpretation and construction in light of and in accordance with its express terms and provisions. 22. General Provisions. A. This Sewer System Extension Agreement constitutes the entire agreement between the parties and no prior oral or written agreement shall be valid. B. For the purpose of this Agreement, time is of the essence. 23. Mutual Cooperation and Further Agreements. When in compliance with the Pasco Municipal Code and State and Federal laws, the parties agree to cooperate in good faith with regard to each and every aspect required for the completion of the construction of the sewer system improvements which are the subject of this Agreement and the transfer of property; and to further sign all documents, deeds, and permits reasonably necessary to accomplish the purpose of this Agreement. 24. Waiver of other Claims. Except as otherwise provided in this agreement, developer expressly waives any and all claims for damages against the City, its employees, or agents, with respect to any contribution, compensation, or other damages arising out of this agreement. This waiver includes, but is not limited to, lost profits and expectation damages. Riverview East Lift Station - Sewer System Extension Agreement Page 8 of 11 EXECUTED the day and year fust above written. CITY OF PASCO: DEVEL (1 By: By: Dave Zab anager Jeff Iy, J Construction, Inc. ATTEST: Debra Barham, City Clerk APPRO D AS TO FORM: 47? Derr Ferguson Law, City Attorney Riverview East Lift Station - Sewer System Extension Agreement Page 9 of 11 STATE OF WASHINGTON ) ss COUNTY OF FRANKLIN ) On this day personally appeared before me DAVE ZABELL, City Manager of the City of Pasco, Washington, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this I day of ��b, uork , 2022. State of Washington KRYSTLE LYNN SHANKS MY COMMISSION EXPIRES January 5, 2024 Notary Public in and for the State of Washington Print Name: V� Y.A -,A \ e l S0 0 n tis Residing at &,S r My Commission Expires: _ Ta x,, 5, joaj STATE OF WASHINGTON) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me JEFF KELLY, Owner of J&J Kelly Construction, Inc., a Washington Corporation, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this 1 st day of Fe , 2022. 2�&�C. ANDREW C. BALES NOTARY PUBLIC in and for the State of Washington STATE OF WASHINGTON Print Name: m.� C . 66 NOTARY PUBLIC Residing at: parca, WA LIC. # 148604 My Commission Expires: COMMISSION EXPIRES JUNE 8, 2022 Riverview East Lift Station - Sewer System Extension Agreement Page 10 of 11 1:11: "Legal Description" THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 22, TOWNSHIP 9 NORTH, RANGE 29 EAST, W.M., EXCEPT THE EAST 151.13 FEET OF NORTH 165.77 FEET THEREOF; AND EXCEPT PORTION CONVEYED TO FRANKLIN COUNTY BY INSTRUMENT RECORDED UNDER AUDITOR'S FILE NO. 48051; TOGETHER WITH THE EAST HALF OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 22, TOWNSHIP 9 NORTH, RANGE 29 EAST, W.M., EXCEPT THE NORTH 165.77 FEET OF WEST 242.26 FEET THEREOF; ALL RECORDS OF FRANKLIN COUNTY, WASHINGTON. Riverview East Lift Station - Sewer System Extension Agreement Page 11 of 11