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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