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HomeMy WebLinkAboutA2721 - DWA DESERT WATER AGENCY UTILITY OWNERSHIP AD 155 • Desert Water Agency - AD ] Utility Ownership AGREEMENT #2121 AGREEMENT R16785, 6-7-89 (Developer Installed Water Fac; liti THIS AGREEMENT, made this 7th day of June, 1989 by and between City of Palm Springs (hereinafter referred to as "Developer" ) and DESERT WATER AGENCY, a public agency, (hereinafter referred to as "Desert") . R E C I T A L S 1 . Developer desires to procure water service to A.D. 155 in City of Palm Springs 2 . Desert agrees to provide domestic water service to said development upon certain terms and conditions which Developer has found to be acceptable. A G R E E M E N T NOW, THEREFORE, in consideration of the mutual covenants herein contained, and other good and valuable consideration, the parties agree as follows : 1 . Desert agrees to provide domestic water service to the aforesaid development in compliance with its applicable rules, regulations , ordinances and orders when, as, and if Developer has complied with the terms and conditions contained herein. 2 . Developer agrees to construct and convey the water facilities necessary for aforesaid development in accordance with the following terms and conditions : A. Developer will cause domestic water facilities to be constructed as shown on the approved wager plan at its expense by a qualified California licensed contractor approved in advance by Desert, and Developer will, at its expense, furnish all materials , labor and equipment actually necessary to construct the water facilities required. B . Said water facilities will tie constructed and installed in full compliance with all applicable rules , regulations and ordinances of Desert including, but not limited to, Desert' s "Regulations Governing Domestic Water Service, Main Extensions" . C. Specifications and improvement plans for said facilities shall be submitted to and approved by Desert prior to the presentation thereof to contractors for bidding purposes and said facilities shall be constructed and installed in full compliance with said approved specifications and plans . D. Said installation shall be subject to the inspection, acceptance and approval of the General Manager of Desert, or such person appointed by him to approve said job, and said installation shall not be tied to any existing pipelines of Desert, except for purpose of chlorination or testing, if and when approved by Desert, and no water service shall be provided until said inspection, acceptance and approval have been delivered to Developer in writing. • • E. Developer will, on demand, pay the applicable hourly rate for an inspector for such time as ma_v be required as determined by Desert to inspect the construction of the water system. Said rates shall be that which is applicable at the time of actual inspection. The inspector shall be appointed by and work under the supervision of Desert, and shall perform an inspection of construction until the water system is accepted and approved as stated herein. F. Developer shall furnish to Desert proof of "Faithful Performance" and "Material and Labor" bonds filed with the local agency (city or county) . Upon receipt of proof of all securities, and upon receipt by Desert of an executed Well Metering Agreement, if applicable, Desert will furnish to the appropriate departments of the County of Riverside, or the City of Palm Springs , or the City of Cathedral City, a letter from Desert indicating that financial arrangements have been made for the construction of said water facilities for said development, and that Desert is willing to provide domestic water service thereto, provided at the time of such request: (1) Developer shall have complied with all provisions of this Agreement applicable as of that time, and, (2) Developer shall have furnished to Desert at Desert ' s request such improvement security relating to said water facilities in favor of Desert, in a form acceptable to Desert. G. Developer will provide any and all grant deeds , easements and/or rights-of-way or other real property interests satisfactory to Desert for all mains; and services installed for said development pursuant to the: terms hereof, said easements to be sufficient for the service and maintenance thereof, and/or will obtain the necessary encroachment permits from appropriate public bodies in lieu of said. easements . H. Developer will indemnify and hold harmless Desert from any and all claims for damages to property or injuries to persons arising by reason of or in any manner - - connected with said installation-, such indemnification to include any attorneys ' fees and court costs included in connection therewith. I . Desert will require and obtain a title report at Developer' s expense evidencing that no liens exist in conjunction with said construction. A recorded Notice of Completion for the domestic water facilities only evidencing that said installation is complete will be required by Developer to be delivered to Desert,, together with unconditional labor and material releases that all labor and materials therefore have been fully paid for. After all sums due to Desert hereunder have been paid in full and as-built drawings of said water facilities have been delivered to Desert, acceptance by Desert of the domestic water system shall vest title thereto in Desert without further action on the part of the Developer. The above instruments required of Developer shall be prepared, executed and delivered in the form and manner prescribed or approved by Desert. J. Developer hereby guarantees that all materials and workmanship furnished under this contract will meet fully all requirements of Desert as to quality of workmanship and of materials furnished by Developer. Developer hereby agrees to replace all materials and pay for all installation costs , made necessary by defects in materials or workmanship supplied by Developer that become evident within one year after the date of conveyance of the system to Desert and pay for all work necessary to remove, restore and replace the materials to full serviceability and to full compliance with the requirements provided by Desert pursuant to this Agreement, including the test requirements for any part of the materials furnished hereunder which, during said one year period, are found to be deficient with respect to said requirements . Developer also agrees and does hereby hold Desert harmless from any claims of any kind which may arise from damage due to said defects . Developer shall replace all defective materials promptly upon receipt of written orders for same from Desert. If Developer fails to replace all defective materials promptly, Desert may secure the service of others to do this work; and Developer and its surety shall be liable to Desert for the cost, including removal and replacement thereof. (1) The guarantees and agreements set forth in Paragraph J herein shall be secured by a surety bond, irrevocable letter of credit, or such other instrument approved in advance by Desert which shall be delivered by Developer to Desert prior to the time of execution of this Agreement. Said security shall be in an approved form and executed by a surety company or institution satisfactory to Desert in the amount of $2 , 500 or 10% of the amount of the construction contract whichever sum is greater. The security amount: required for this development is $ 55,000 , and said security shall remain in force for a period of one year from the date of written acceptance by Desert. (2) It is understood that all connections to existing water facilities will be made by Desert at Developer' s expense for the actual cost of the material including overhead costs , labor and equipment charges , along with administrative costs and any other associated costs necessary to complete said connections . Contractor may make certain connections to Desert' s exiting system at Developer' s expense if approved in advance by Desert. (3) All meters will be set after completion of the water system to Desert' s satisfaction. Said meters will be installed at Desert' s current regular price for installing a meter. Such cost will be paid by the customer requesting service. (4) Desert shall not be liable for the replacement of decorative concrete and other surface improvements except asphalt concrete surfacing which Desert may be required to remove in the future to gain access to the water pipelines and appurtenances. (5) At Desert ' s option, the; terms and conditions of this Agreement will become null and void and Desert will have no further obligations hereunder in the event the construction of the facilities covered herein has not begun within 12 months of the date of this Agreement:. In the event construction has not been accepted by Desert within 24 months of the date of this Agreement, this Agreement and: any other related water plans must then be revised to include any new conditions and to cover all increased costs, including any new fees and charges which may be in effect at that time. No further work will be permitted until all provisions of this paragraph have been fulfilled. Desert may at its discretion, call upon the local agency, (city or county) , to complete the construction of the domestic water facilities utilizing the securities in accordance with Paragraph F hereof. (6) Developer will install a lock box approved by Desert at the main entrance to a development that contains any private streets to assure access to Desert' s facilities if at any time in the future controlled access to private streets is realized. Said installation to be completed prior to Desert installing any and all water meters for the development. (7) Developer shall execute a separate Well Metering Agreement with Desert for any water well developed by Developer for golf course irrigation or other purposes in connection with said development. Said agreement will be mailed to Developer by Desert for execution. Upon execution of a well drilling contract, Developer will : (a) Notify Desert of intent to drill said well (s) . (b) Have determined the required meter size. (c) Upon completion of said well (s) , Desert shall install meter (s) on the well (s) in accordance with the Well Metering Agreement. (8) In the event that either party shall fail to perform its part of this Agreement, and suit shall be commenced, or an attorney employed to enforce the provisions thereof, the party who fails to perform his part of the Agreement agrees to pay any and all costs involved therein, and to pay a reasonable attorney ' s fee . (9) This Agreement shall be 'binding upon and inure to the benefit of the successors and assigns of the parties hereto, and each of them. (10) This Agreement contains all of the terms and conditions agreed upon by the parties hereto, and no other agreements, oral or otherwise shall be deemed to exist or to bind the parties hereto unless hereafter duly placed in writing and executed by the undersigned. DATED: jfj. e I G DESERT WATER AGENCY J eral Manager ��:�i , .�r[_,f., i•,.,.•i:',N-r 4:, City �k 5(70.-UY9s ,B- Norman R. King Title:City Manager