08-058.00 Rem-Rock Corporation: 24th Ave Reconstruction Sewer Main... ..
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MEMORANDUM OF UNDERSTANDING (MOU)
BETWEEN THE CITY OF SPOKANE VALLEY
AND Rem-Rock Corporation
FOR THE DESIGN, BIDDING 8 CONSTRUCTION OF THE
24th AVENUE SEWER MAIN
IN CONJUNCTION WITH THE 24T" AVENUE RECONSTRUCTION PROJECT
WHEREAS, as a part of its Transportation Improvement Program, the CITY OF SPOKANE
VALLEY (the CITY) intends to construct the 24T Avenue Reconstruction Project the ROAD
PROJECT). The work includes the full-width, curb to curb, reconstruction of 24 "Avenue,
between Sullivan Road and 22"° Avenue; and
WHEREAS, as a part of its development of the proposed Timber Lane Terrace, Rem-Rock
Corporation, P.O. Box 989, City of Spokane Valley, WA 99037 (the DEVELOPER), intends to
construct a project known as the 24'~ Avenue Sewer Main Project, and a segment of that sevrer
project, hereinafter referred to as the SEWER PROJECT, is located within the limits of the
ROAD PROJECT; and
WHEREAS, the CITY and DEVELOPER agree that the installation of the SEWER
PROJECT in conjunction vrith the ROAD PROJECT would benefit the ratepayers, taxpayers
and the traveling public;
NOW, THEREFORE, the CITY and the DEVELOPER do hereby agree as follovrs:
ARTICLE 1 -JOINT RESPONSIBILITIES
Plans and specifications for the ROAD PROJECT will be prepared by the CITY, and the CITY
intends to construct the ROAD PROJECT in 2008. DEVELOPER will prepare plans, stamped
by a Civil Engineer licensed in the State of Washington, for the SEWER PROJECT, together
with technlcal specifications and an associated schedule of bid items. The CITY will include
those plans, technical specifications, and the associated bid schedule wish the bid documents
for the ROAD PROJECT. The plans and specifications for both the ROAD PROJECT and the
SEWER PROJECT shall be based on the 2008 Standard Specifications for Road, Bridge, and
Municipal Construction as published by the Washington Stale Department of Transportation.
The CITY and DEVELOPER agree to accept the lowest responsible bidder for the combined
project.. A bidder may be disqualified only in accordance with the attached American Public
Works Association General Special Provision (APWA GSP) Section 1-02.14 supplementing the
WSDOT Standard Specifications. The costs in the bid shall be allocated between the ROAD
PROJECT and SEWER PROJECT with the City paying for the ROAD PROJECT and the
DEVELOPER paying for the SEWER PROJECT.
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ARTICLE 2 - RESPONSIBILITY OF THE CITY
1. The CITY, upon awarding a contract for the ROAD PROJECT and the SEWER PROJECT,
shall have full control over the resultant construction contract and shall be the administrator for
the combined project.
2. The CITY shall be responsible for all aspects of the design, construction, and construction
management relative to the ROAD PROJECT, including, but not limited to, removal and
replacement of asphalt and road base down to subgrade within the 24~' Avenue Reconstruction
Project construction limits. The CITY will be responsible for compaction testing of the subgrade
and asphalt replacement within the boundaries of the ROAD PROJECT.
3. The CITY shall make payments to the contractor in accordance with the contract terms, in
order that work will proceed according to schedule.
ARTICLE 3 -RESPONSIBILITIES OF the DEVELOPER
1. The plans and specifications for the construction of the SEWER PROJECT will be prepared
by the DEVELOPER in accordance with the current Spokane County Sewer design Standards.
The DEVELOPER will obtain County approval of the plans and specifications by April 1, 2008.
The DEVELOPER will coordinate plan development with the CITY and with Vera Water and
Power and take reasonable measures to ensure that the SEWER PROJECT plans are
compatible wi#h the scope of work contemplated under the ROAD PROJECT.
2. The DEVELOPER shall designate a responsible person who shall represent the
DEVELOPER's interest during the construction of the SEWER PROJECT, and shall coordinate
arty modifications or changes needed by the DEVELOPER in conjunction with the work.
3. The DEVELOPER shall be responsible for the inspection and testing of all work and
materials which are solely related to the construction of the SEWER PROJECT, including
compaction testing and soils testing within the SEWER PROJECT trench area below the final
subgrade elevation of the reconstructed 24`'' Avenue. The DEVELOPER shall provide a
representative to perform inspection duties relative to the construction of the SEWER PROJECT
that meets the approval of Spokane County. The DEVELOPER's representative shall provide
tabulations of pay quantities to the CITY upon 48 hours notice to facilitate the preparation of pay
estimates by the CITY.
4. Any modifcations or changes to the SEWER PROJECT shall be coordinated by the
DEVELOPER and shall be coordinated with and approved by the CITY prior fo implementation.
ARTICLE 4 -ALLOCATION OF COSTS
1. This Memorandum of Understanding, once fully executed, shall establish a commitment by
the DEVELOPER to reimburse the CITY for all construction costs associated with the SEWER
PROJECT. All additional costs associated with the DEVELOPER's change orders for the
SEWER PROJECT shall be the responsibility of the DEVELOPER.
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2. Payment by the DEVELOPER shall be in the following manner.
A. The Total Project Cost of the SEWER PROJECT will be estimated by the
Developer's engineer in an Engineer's Estimate of Probable Cost, broken out by bid
item, including applicable state sales tax, and a 15% contingency. The DEVELOPER
will provide cash, a letter of credit, savings assignment, set-aside letter, or other
appropriate financial instrument to the CITY, with a signed copy of this. Memorandum,
giving the CITY a unilateral right to access funds up to the "Total Project Cost° amount,
from a financial institution. The SEWER PROJECT will not be included in the ROAD
PROJECT bid documents unless this signed MOU and a financial instrument are both
received one vreek prior to the date of advertisement currently scheduled for Thursday,
April 10, 2008.
B. The CITY and the DEVELOPER recognize that,the estimated Total Project Cost for
the SEWER PROJECT is for planning purposes, and that the final cost vrill be based
upon final quantities, avrarded unit bid item prices, and associated change orders.
C. The CITY shall prepare monthly pay estimates for the SEWER PROJECT based
upon the tabulations of pay quantities provided by the DEVELOPER. The DEVELOPER
shall have one working day to review each pay estimate prior to the City presenting the
estimate to the Contractor for final payment. If review comments are not received by the
CITY from the DEVELOPER's designated representative within one working day, the
CITY will proceed vrith payment of the pay estimate to the Contractor.
D. Upon completion of the ROAD PROJECT, the CITY will tabulate all Final Cost
associated with the SEWER PROJECT. This Final Cost will be compared io the
estimated Total Project Cost described in Section 2.A. above. If the Final Cost exceeds
the estimated Total Project Cost, the DEVELOPER agrees to pay the CITY the
difference within 30 days. If the Final Cost is less than the estimated Total Project Cost,
the CITY agrees to either reimburse the DEVELOPER the difference (if the
DEVELOPER paid cash) or the CITY agrees to request from the letter of credit, savings
assignment, set-aside letter, or ocher appropriate financial instrument only the Final Cost
of the SEWER PROJECT.
ARTICLE 5 -DURATION
The agreement shall terminate upon the completion of the construction project provided for
hereunder and completion of payments under the prevailing wage lours, provided that any
warranties from the contractor to the CITY or the DEVELOPER sha11 continue in full force and
effect.
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A~ri~LE s - APPROVAL -
This ~lemorand~m ~f Understanding ~r~as ap~rorred by the icy of poka~ne lfalfe~r ik
ounci! on Y X08 ~r~d by the DE1IEL~PER err
~.~ ~~.
CITY ~K 3PDF~ANE VALLEY:
By: }~~ Dale: ~
David Mercier
Diky Manager
APFR~VED A T ORM;
By: - '~ ~ Date; '~ ,~ `~
ice ire ~i#~+ At#cme~
DEIIELO?ER:
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B~; Date;
James f~, Fix, ident +
Rem-Rock ~ ation
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