HomeMy WebLinkAboutMAIN OFFICE PROFESSIONAL BUILDING - WARREN H. LORTIE - DAVID AND LINDA ADLER - FRANK M. AND DOLORES L. CRACCHIOLO - 1978-09-18AGREEMENT FOR SANITARY SEWER CONSTRUCTION ON MAIN
STREET BETWEEN FLORIDA AND BEACH BOULEVARD
THIS AGREEMENT, made and entered into this day of
1978, between the CITY OF HUNTINGTON BEACH, a muni-
cipal corporation of the State of California, hereinafter re-
ferred to as "CITY", and tbree developers known as (1) The Main
Office Professional 3uilding, Warren H. Lortie, managing part-
ner, 18600 Main Street, Huntington Beach, California 92648;
(2) David and Linda Adler, 21832 Michigan Lane, Lake Forest,
California 92630; and (3) Frank M. and Dolores L. Cracchiolo,
19712 Quiet Bay Lane, Huntington Beach, California 92648, here-
inafter jointly referred to as "DEVELOPERS",
WHEREAS, DEVELOPERS desire CITY to participate in financing
a construction. Project of an eight -inch sewer line from the
north side corner of Main Street between Florida and Beach
Boulevard, Huntington Beach, California, to a manhole located
at the Ellis and Main Street intersection, and
CITYdesires to have said sewer line Project constructed
at the present time, rather than wait for the aria served by
the Project to be completely developed, and
CITY intends to recover its costs of contribution in financ
.1
"* } ,aid Project by collecting fees from future developers of
-w,ian,�ly vacant property as they hook up and use the proposed
eight -inch sewer line, and
The absence of said sewer line in said area would neces-
sitate DEVELOPERS to each install a separate se,. -tic tank on
their separate property.
1.
S
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NOW, THEREFORE, in consideration of the covenants and
agreements herein contained, the parties hereto agree as
follows:
i. DEVELOPERS shall design the above described .eight-
inch sewer line project, more particularly described in Exhibit
"A" attached hereto and by this reference incorporated herein
and made a part of this agreement. DEVELOPERS shall prepare
plans and specifications for said Project. CITY shall have the
right to review and approve said plans and specifi. ations prior
to advertising for invitation for bids.
2.DEVELOPERS shall. prepare and advertise invM.tation for
bids at its own expense. A minimum of three bids shall be re-
quired. CITY shall have the right to review bids received and y
shall have rights of approval of the lowest r�-4sponsible bidder
prior to the award of the contract.
3. DEVELOPERS shall require that the successful bidder
contractor obtain an encroachment permit to work within the
public right-of-way in accordance with Huntington Beach Muni-
cipal Code Chapter 12.12 and comply with Chapter 12.16, and
that the contractor pay all required fees including inspection
fees.
4. DEVELOPFRS and CITY agree that the fain Street front-
age foot cost is the most fair and equitable method of allocating
the cost of the Project. The total front footage for this Pro-
ject is 600 feet, and the estimated cost of the Project is
$1.8,000, including the cost of the preparation of the plans
and specifications, surveying ccsts, permit fees, insp,�,tion
2.
costs, construction costs, and the cost of bonds and liability
insurance.
5. DEVELOPERS shall pay their proportional share of the
Project based on their total front footage of 290 feet being
served by this Project. DEVELOPERS' estimated share of the
Project is 290 divided by 600 of the total estimated cost which
is $8,700. CITY shall pay its proportional share of the Project
ba,_)ed on the undeveloped properties on Main Street which have a
total front footage of 310 feet which will be served by this
Project when the properties are developed and hookups to the
Project are made. DEVELOPERS shall receive no part of future
hookup sewer fees paid to the CITY when connections from said
undeveloped properties are made to this Project. CITY'S esti-
mated share of the Project is 310'divided by 600 of the total
estimated cost which is $9,300. CITY shall pay its propor-
tionate share of the costs of the Project after the "Notice of
Completion" is filed and demand is made by DEVELOPERS.
6. DEVELOPERS shall require the contractor to file a
"Notice of Completion" with the Orange County Recorder's Office
upon completion of the Project.
7. DEVELOPERS shall require the contractor, to furnish
bonds and liability insurance as follows:
(a) Insurance. On or before commencement of Project,
contractor shall obtain or provide satisfactory evidence of hav-
ing policies of liability and workers' compensation insurance
from companies authorized to transact business in the State of
California by the Insurance Commissioner of California,
3.
(1) The, policy of liability insurance shall
be issued to contractor and name DEVELOPERS and CITY, and their
officers, agents and employees as additional insureds.
(2) The policy shall indemnify, defend and hold
harmless DEVELOPERS and CITY for all liability for personal and
bodily injury, death and damage to property &rising from activities
conducted pursuant to this Project by providing coverage thereof,
including but not limited tc, coverage for negligent acts or
omissions of the contractor and his agents, servants and em-
ployees committed in the conduct of Project operations.
(3) The minimum liability limits shall be $300,000
combined single limit per occurrence including property damage.
The liability insurance policy shall be noncancellable without
thirty (30) days' written notice thereof to CITY.
(4) The policy of workers' compensation insurance
shall have been previously approved as to substance and form by
the California Insurance Commissioner, and it shall cover all
employees of the contractor who, in the course and scope of their
employment, are to conduct or do work pursuant to the Project
operations. The policy shall be noncancellable without thirty
(30) days' written notice thereof directed to CITY,
(b)Bonds. On or before execution of the contractor's
agreement, the contvac,;or shall file and thereafter at all tunes
during the course of the Project keep on file with CITY a cor-
porate surety faithful performance bond, approved by CITYfS City
Attorney, running to DEVELOPERS and CITY in the penal sum equal
to the cost of the Project. On or before the execution of the
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contractr-els agreement, the contractor shall file and thereafter
at all times during the course of the Project keep on fil,_- with
the CITY a corporate surety labor and material payment bdad,
approved by CITY'S City Attorney, :in the penal sum equal to
one-half (1/2) th cost of the Project The bidders for the
Project shall accompany their, proposals with a bidder's security'
in an amount equal to ten percent (10%) of their bid in accord-
ance with California Government Code Section 37931, et seq.
IN WITNESS WHEREOF, the parties hereto have caused this
agreement to be executed by and through their authorized officers
the day, month and year first above written,
CITY OF HUNTINGTON BEACH (CITY)
ATTEST: A
Mayor
City Clerk
REVIEWED AND APPROVED: APPROVED AS TO FORM:
4..itty'LA(dministrator City Attorneyj^�
INITIATED AND APPROVED
irector Purl cr,.
THE MAIN 0 ICE P SIGNAL
BUILDING DEVELO
`rJarren $. Lortie,
Manag:;.ng Partner
5•
REQUIRT FOR CITY COUNCI I0��
SubmittedbyH. E. Hartge //Z-0 Department Public Works'
Date Prepared September 11, 1978 Backup Material Attached Yes No
Subject Property Owner's Request for Sanitary Sewer Service on Main St.'
City Administrator's Comments
A3'FItOVEI7 By, CITy y OCINC",
il
CI CLLRI�
Statement of Issue, Recommendation, An2;;ysis, Funding Source, Alternative Actions:
Statement of Issue
city Council approved the request of owners of three properties fronting
on Main. St'. between Florida and E:'.lis for City participation in the cost,
of a sanitary sewer and instructed staff to prepare an agreement covering
the terms.
Recommended Action
Approve the agreement concerning participation in the cost of a'sanitary
sewer line in Main St. wits: the Main Office Professional Building, .a
General Partnership i'rank'M. & Dolores L. Cracchiola and David & Linda
Adler.
Analysis
The sewer line proposed by the three property owners would eliminate ,the
necessity of the installation of septic tanks since the proposed Beach/
Main trunk line will not be complete until after the development of the
three properties.
Alternative
(1) Have the owners deposit the $8,700`with the pity and City prepare
the plans and let the contract. This will delay the project six
to eight Weeks and would cost about 20% more.
(2) No Project - This will result in the installation of septic tanks
at the three locations
Funding Source
Private funds in the amount of $8,700 and Sewer Fund in the amount of
$9,300.00.
HEH:mc 7 ,✓
PIO 3178