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12-044.00 Vera Water & Power: Evergreen Rd Construction Water Main TransmissionMEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SPOKANE VALLEY AND VERA WATER AND POWER FOR THE BIDDING & CONSTRUCTION OF THE EVERGREEN ROAD WATER MAIN TRANSMISSION PROJECT IN CONJUNCTION WITH THE EVERGREEN ROAD RECONSTRUCTION PROJECT WHEREAS, as a part of its Transportation Improvement Program and Pavement Management Program, the CITY OF SPOKANE VALLEY (the CITY) intends to construct the Evergreen Road Reconstruction Project (the ROAD PROJECT). The work includes the overlay and reconstruction of various portions of Evergreen Road, between 16th Avenue and 32nd Avenue, and 32nd Avenue between Evergreen Road and Best Road; and WHEREAS, as a part of its 2012 Construction Program, VERA WATER AND POWER (VERA) a Washington State Irrigation District, intends to construct a project known as the Evergreen Road Water Main Transmission Project, and that project, hereinafter referred to as the WATER PROJECT, is located within the limits of the ROAD PROJECT; and WHEREAS, the CITY and VERA agree that the installation of the WATER PROJECT in conjunction with the ROAD PROJECT would benefit the ratepayers, taxpayers and the traveling public; NOW, THEREFORE, the CITY and the VERA do hereby agree as follows: 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 2012. VERA will prepare plans, stamped by a Civil Engineer licensed in the State of Washington, for the WATER PROJECT, together with technical specifications and an associated schedule of bid items. The CITY will include those plans, technical specifications, and the associated bid schedule with the bid documents for the ROAD PROJECT. The plans and specifications for both the ROAD PROJECT and the WATER PROJECT shall be based on the 2012 Standard Specifications for Road, Bridge, and Municipal Construction as published by the Washington State Department of Transportation. The CITY and VERA 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. If the parties disagree on whether a bidder is the lowest responsible bidder for the combined project, the parties shall consult regarding the dispute prior to award. If the parties are still not able to resolve the dispute, the CITY shall have final authority to determine lowest responsible bidder for the combined project. The costs in the bid shall be allocated between the ROAD PROJECT and WATER PROJECT with the City paying for the ROAD PROJECT and Vera paying for the WATER PROJECT. Page 1 of 4 Ct)I4L,_- aqq ARTICLE 2 — RESPONSIBILITY OF THE CITY 1. The CITY, upon awarding a contract for the ROAD PROJECT and the WATER 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 subgrade within the Evergreen Road 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 VERA 1. The plans and specifications for the construction of the WATER PROJECT will be prepared by VERA. VERA will coordinate with the CITY and take reasonable measures to ensure that the WATER PROJECT plans are compatible with the scope of work contemplated under the ROAD PROJECT. 2. VERA shall designate a "responsible person" who shall represent VERA's interest during the construction of the WATER PROJECT, and shall coordinate any modifications or changes needed by VERA in conjunction with the work. 3. VERA shall be responsible for the inspection and testing of all work and materials which are solely related to the construction of the WATER PROJECT, including compaction testing and soils testing within the WATER PROJECT trench area below the final subgrade elevation of Evergreen Road and 32nd Avenue. VERA shall provide a representative to perform inspection duties relative to the construction of the WATER PROJECT, as discussed above. VERA'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 modifications or changes to the WATER PROJECT shall be coordinated by VERA and shall be coordinated with and approved by the CITY prior to implementation. ARTICLE 4 — ALLOCATION OF COSTS 1. This Memorandum of Understanding, once fully executed, shall establish a commitment by VERA to reimburse the CITY for those construction costs associated with the WATER PROJECT. All additional costs associated with VERA's change orders for the WATER PROJECT shall be the responsibility of VERA. 2. The CITY shall prepare monthly pay estimates for the WATER PROJECT based upon the tabulations of pay quantities provided by VERA. VERA shall promptly review each pay estimate prior to presentation to the CITY by the contractor. Page 2 of 4 3. Upon the signing of each pay estimate by the CITY and the contractor, the CITY shall send an invoice to VERA for those amounts to be paid to the contractor by the CITY for work on the WATER PROJECT. The CITY shall include copies of the signed pay estimates as attachments to the monthly invoices to VERA. VERA shall pay the City, within 20 days of the receipt of the invoice, for all construction costs due to the contractor in association with the WATER PROJECT. 4. VERA shall obtain a permit from the CITY to perform work within the CITY'S right -of -way for the WATER PROJECT. The CITY is authorized to charge its reasonable administrative costs incurred for preparing pay estimates, change orders, etc., for the WATER PROJECT to the permit. 5. VERA shall be responsible for the removal and replacement of the quantity of asphalt and crushed surfacing that would have been removed and replaced if Vera had proceeded with the WATER PROJECT without the ROAD PROJECT in accordance with the most current version of the Inland Northwest Regional Pavement Cut Policy. This quantity has been determined to be 7916 square yards and will be reimbursed by VERA to the CITY per the accepted bid. 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 laws, provided that any warranties from the contractor to the CITY or VERA shall continue in full force and effect. VERA reserves the right to terminate this agreement and proceed with the WATER PROJECT on its own if the CITY has not advertised for bids by April 20th, 2012 or awarded a contract by May 15th, 2012. ARTICLE 6 — APPROVAL This Memorandum of Understanding was approved by the Vera Water and Power Board of Directors on January 11, 2012. CITY OF SPOKANE VALLEY: By: Ac�ir, City Manager M al{ r ���n APPROVED AS TO FOR : By: . r,&,"l ' '-'4 ) J Office of t& City Attorney Page 3 of 4 Date: Z4A VW I Date: `i VERA: By: Kevin M. Wells General Manager, Vera Water and Power Page 4 of 4 Date: 1"�cNfCV- :?Z10, '20)Z-