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2006 Washington-III, Ltd - Reimbursement Agrmt Simon Dr RehabCITY OF LA QUINTA REIMBURSEMENT AGREEMENT SIMON DRIVE PAVEMENT REHABILITATION THIS REIMBURSEMENT AGREEMENT (the "Agreement") is made and entered into this elf 7 _ , 2006, by and between Washington 111, LTD (the "developer") and He City of La Ouinta, California, a California Charter City (the "City"). RECITALS: 1. The developer, Washington 111, LTD, is required to overlay the project's utility patches on Simon Drive as stipulated in the conditions of approval for their project. 2. After investigating the condition of Simon Drive, staff discovered a sub -standard pavement thickness. Simon Drive was originally part of the Riverside County roadway system and was not previously considered a commercial route for vehicles. The entire roadway requires rehabilitation to bring this street up to current standards. Rehabilitating the pavement at this time will be cost-effective and will ensure the road will not require another overlay in the near future. In addition, performance of the work now, before the completion of the traffic signal at Washington Street and Simon Drive, will minimize the disruption and inconvenience to businesses and the public. 3. The City desires to reimburse the developer for rehabilitation of Simon Drive between Washington Street and Highway 1 1 1. 4. It is therefore necessary that and the City enter into this agreement for the rehabilitation of Simon Drive. NOW, THEREFORE, it is agreed by and between Washington 111, LTD and the City as follows: 1. Scope of Work. The Work shall consist of providing all necessary traffic control, flaggers, detour signs and devices; removal and proper disposal of existing failed roadway section on Simon Drive from Washington Street to Highway 111; preparing sub -grade to place & compact crushed aggregate base; and place two lifts of asphalt pavement based on quantities and costs described in detailed proposal of work (Exhibit A). 2. Responsibilities of Washington 111 LTD. The developer shall cause the rehabilitation of the Simon Street pavement between Washington Street and Highway 111 to be performed in accordance with City Standards as well as the standard specifications for Public Works Construction (green book). 3. Responsibilities of City. The City shall reimburse Washington 111, LTD for the pavement work contingent upon the City approving the improvement plans and accepting the improvement once constructed. 4. Reimbursement to Washington 111 LTD. Reimbursement for work performed shall be made to Washington 111, LTD in the amount of $101,930.30 (based on the work encompassing 22,905.69 square feet at $4.45/square foot for items 5a through 5e as outlined in Exhibit A) as outlined in Exhibits A & B and upon proof of actual expenses and completion of the item as verified and approved by the Public Works Director/City Engineer or his designee. a. At least ten business days prior to a requested reimbursement payment, the developer shall deliver to the City a request for the amount of the reimbursement earned. Developer shall certify in the request for reimbursement that it is accurate and complete. The request for reimbursement shall specifically identify the nature of each expense by reference to the line items set forth in Exhibit A, and shall specify the status of completion of the design or construction. b. The City shall have received appropriate waivers of mechanics' and materialmens' lien rights and stop notice rights executed by all contractors and other persons rendering service or delivering materials covered by the request for reimbursement. c. Considering a. and b. above, the City shall reimburse Washington 111, LTD for all approved reimbursable work items within 30 calendar days of approval by City Engineer. 5. Warranty. Washington 111, LTD shall require its contractor warrant the Improvements, which include the pavement rehabilitation, for one (1) year following completion of the improvements. 6. Perpetual Maintenance. It is understood and mutually agreed that in exchange for the City's fiscal participation in the pavement rehabilitation work, the City will maintain the pavement in perpetuity which is hereby acknowledged to be an obligation that survives the term of this agreement. 7. Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations incurred herein so long as the injuring party commences to cure such injuring action within ten (10) business days of service of such notice and completes the cure within forty-five (45) calendar days after the notification, or such longer period as may be agreed upon by the parties. 8. Attorney's Fees. If any party commences an action against the other arising out of or in connection with this Agreement, including the filing of a lien or other legal action to compel payment of the Reimbursement, the prevailing party shall be entitled to recover reasonable attorney's fees and legal costs from the losing party. 9. Indemnification. Washington 111, LTD shall indemnify, defend and hold harmless the City, it's officers, employees, agents ("City indemnities"), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including attorneys' fees and costs of litigations ("claims"), arising from the activities of Washington 111, LTD or of its agents or contractors in the performance of this Agreement, excepting only those actions, claims, liabilities, obligations judgments, or damages arising out of actions of the City indemnities. In the event the City is made a party to any action, lawsuit, or other adversarial proceeding alleging negligent or wrongful conduct on the part of Washington 111, LTD or its agent or contractors: 1 } Washington 111, LTD shall provide a defense to the City indemnities or at the City's option, reimburse the City indemnities for their costs of defense, including attorneys' fees, incurred in the defense of such claims; and -2- 2) Washington 111, LTD shall promptly pay any final judgment or portion thereof rendered against the City. 10. City Officers and Employees. No officer or employee of City shall be personally liable to Washington 111, LTD or any successors in interest in the event of any default or breach by City or for any amount which may become due to Washington 111, LTD or their successors in interest or for breach of any obligation of the terms of this Agreement. 11. Term of Agreement. This Agreement shall remain in full force and effect in perpetuity unless otherwise mutually agreed upon by the parties in writing. 12.Insurance. Washington 111, LTD shall concurrently with the execution of this Agreement, furnish the City satisfactory evidence of insurance of the kinds and in the amounts specified below. This insurance shall be kept in full force and effect by Washington 111, LTD in perpetuity and all premiums thereon shall be promptly paid by it. Each policy shall further state that it cannot be canceled without 30 days unconditional written notice to the City and shall name the City as an additional insured. Washington 111, LTD shall furnish evidence of having in effect, and shall maintain, Workers Compensation Insurance coverage of not less than the statutory amount or otherwise show a certificate of self-insurance, in accordance with the Workers Compensation laws of the State of California. Failure to maintain the required amounts and types of coverage throughout the duration of this Contract shall constitute a material breach of this Contract a. Commercial General Liability Policy The Contractor shall take out and maintain during the life of the Contract, a Commercial General Liability Policy, on an occurrence basis, with a minimum limit of not less than Two Million Dollars ($2,000,000) combined single limit for bodily injury and property damage for any one occurrence and a Two Million Dollar ($2,000,000) annual project aggregate, for all of the following: (1) Premises Operations, including Explosion, Collapse and Underground (X, C, and U) Coverage. (2) Completed Operations/Products, including X, C, and U Coverage. (3) Independent Contractors. (4) Blanket Contractual. (5) Deductible shall not exceed One Thousand Dollars ($1,000). b. Commercial Business Auto Policy The Contractor shall take out and maintain during the life of this Contract a Commercial Business Auto Policy, on an occurrence basis, with a minimum amount of not less than One Million Dollars ($1,000,000) combined single limit for bodily injury and property damage, providing at least all of the following coverage: -3- (1) Coverage shall be applicable to any and all leased, owned, hired, or non -owned vehicles used in pursuit of any of the activities associated with this Contract. (2) Any and all mobile equipment, including cranes, which is not covered under said Commercial Business Auto Policy shall have said coverage provided for under the Commercial General Liability Policy. (3) Deductible shall not exceed One Thousand Dollars ($1,000). 13. Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give to the other party or any person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To City: City of La Quinta P.O Box 1504 78-495 Calle Tampico La Quinta, CA 92253 (760) 777-7075 Attn: Tim Jonasson, City Engineer/Public Works Director To Developer: Washington 111, LTD 30240 Rancho Viejo Road, Suite B San Juan Capistrano, CA 92675 (760) 342-2674 Attn: Jack Tarr, Developer 14. Assignment of Agreement. The parties hereto may not assign their obligations hereunder to any assignee without the knowledge and consent of the other parties hereto which other parties shall not unreasonably withhold consent. Assignment may be made only to an assignee willing, financially capable and competent to carry out the assignor's obligations. 15. General Provisions. a. Except as otherwise provided herein, the terms, conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns, and successors of the parties hereto. b. The parties to this Agreement do not rely upon any warranty or representation not contained in this Agreement. c. This Agreement shall be governed by and interpreted with respect to the laws of the State of California. d. Any failure or delay by any party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies provided for herein. 13 e. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by the parties. 16. Severability. In the event that any provision or provisions of this Agreement are held unenforceable, all provisions not so held shall remain in full force and effect. 17. Authority of Signatories. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. City: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Thomas P. Genovese, City Manager ATTEST: June S. Greek, City Clerk APPROVED AS TO FORM !.�5rine nson, City Attorney Developer: Washington 111, LTD By: Title: (eyes 161"-%57P�'^ Date: 71 ;1� & Date: -1- --Q 9 ' o (4D Date: Date: 71'-?1 '! j -5-