TC Res. No. 1996-30RESOLUTION NO. 96-30
A RESOLUTION AUTHORIZING A COST RECOVERY
AGREEMENT WITH RIVERVIEW PARK ASSOCIATES,
INC., IN CONNECTION WITH A MAIN LINE
EXTENSION TO LOT 1, EAGLEWOOD SUBDIVISION
WHEREAS, Riverview Park Associates, Inc. ("Riverview"),
is the owner of Lot 1, Eaglewood Subdivision ("the Property");
and
WHEREAS, it is the desire of Riverview to construct a
water distribution line from the currently existing water line on
the west end of Beaver Creek Boulevard to the Property; and
WHEREAS, a proposed Cost Recovery Agreement ("the
Agreement") has been submitted to the Town in compliance with
sections 7.4 and 7.5 of the Water Rules and Regulations of the
Town;
NOW, THEREFORE, BE IT RESOLVED BY THE,TOWN COUNCIL OF
THE TOWN OF AVON, COLORADO, as follows:
1. The Agreement is approved subject to the following
conditions:
a. Technical review and approval by staff of plans and
specifications for construction of water distribution line and
related facilities in general conformance with Exhibit "A" to--the
Cost Recovery Agreement.
b. Technical review and approval by staff of estimate
of reimbursable costs, including unit costs for construction; and
review and approval by staff of statement of certified costs for
purpose of reimbursement.
c. Technical review and approval by staff of necessary
easements, prior to acceptance.
2. The Mayor and the Town Clerk are authorized to sign
the Agreement.
PASSED AND ADOPTED by
Avon, Colorado, the 27th day of
the Town Council of the Town of
COST RECOVERY AGREEMENT
th This Cost Recovery Agreement (this "Agreement") dated this
2$ day of AMU61, 1996 is by and between the Town of Avon, a
political subdivision of the State of Colorado, duly organized and
acting pursuant to the laws of the State of Colorado (the "Town"),
and Riverview Park Associates, Inc., a Colorado corporation
("Riverview").
WITNESSETH:
WHEREAS, Riverview is the owner of the Property in the Town of
Avon, Colorado described as:
Lot 1, Eaglewood Subdivision, according to the Plat
thereof recorded January 5, 1989 in Book 497 at Page 919
in the office of the Clerk and Recorder, Eagle County,
Colorado (the "Property"); and
WHEREAS, in connection with the construction of improvements
on the Property, Riverview desires, at its sole cost and expense,
to construct a water distribution line from the currently existing
water line on the western end of Beaver Creek Boulevard; to the
western boundary of the Property, as- depicted on the Brookside Park
PUD Water Line Extension Plans dated July, 1996, attached hereto as
Exhibit A and incorporated herein by this reference (the
"Distribution Line"); and
WHEREAS, the Town presently has a policy for line extensions,
service connections and cost reimbursement, .and has rules and
regulations relating thereto, which rules and regulations have'been
promulgated by the Avon Metropolitan District and adopted by the
Town (the "Rules and Regulations"), and is willing to reimburse
Riverview for the costs of the construction of the Distribution
Line, as further described herein below, pursuant to the Rules and
Regulations and any other rules and regulations of the Town which
may have been or may hereafter be adopted by the Town Council and
further subject to the terms and conditions of this Agreement; and
WHEREAS, the statutes of the State of Colorado permit, the Town
to enter into this Agreement with Riverview and said statutes
further provide that such Agreement shall be binding upon the Town
and Riverview, their successors, transferees and assigns.-
NOW, THEREFORE, in consideration of the mutual promises herein
contained and for other good and valuable consideration the receipt
and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:
1. Reimbursable Costs & Recovery of Costs. All costs
incurred by Riverview for the construction of the Distribution Line
shall be documented and submitted for audit and review by the Town
prior to the Town's payment of any costs hereunder. Such costs
shall include, but shall not be limited to, all construction,
administration, design and field supervision costs and any other
costs eligible for reimbursement pursuant to Section 7.5.7 of the
Rules and Regulations, but excluding all ineligible costs pursuant
to Section 7.5.8 of the Rules and Regulations (such costs, the
"Reimbursable Costs"). A breakdown of the estimated Reimbursable
Costs is attached hereto as Exhibit B and incorporated herein by
this reference. Upon completion of the Distribution Line,
Riverview shall submit to the Town a written accounting of the
total, actual Reimbursable Costs. The parties hereto agree that
Riverview shall recover the Reimbursable Costs as follows:
The Town agree:, to pay to Riverview fifty percent (500) of all
tap fees received from any connection to the Town's water system as
a result of a building constructed on the Property or the adjacent
property described as Lot 2, Eaglewood Subdivision ("Lot 211), at
such time as the Town receives such tap fees, until such time as
full payment for the cost of construction of the Distribution Line
is made to Riverview under Section 2 below. The parties agree that
the Town's obligations pursuant to this Section are special
obligations of the 'T'own's water enterprise payable solely from the
sources described herein and that such obligations do not
constitute a general obligation or debt of the Town. The Town
agrees (i) not to waive the payment of any tap fee for a connection
due to construction of a building on the Property or Lot 2 and (ii)
to require such tap fees to be paid in full before allowing a
connection to be made to the Town's system.
2. Full Payment. The Town's obligations pursuant to Section
1 above shall continue until such date as the aggregate payments to
Riverview equal the actual Reimbursable Costs. In no event shall
the Town's payments exceed the lesser of one hundred percent (10011)
of the Reimbursable Costs, excluding construction period overhead
and interest, , or fifty percent (500) of all tap fees.
Notwithstanding the foregoing, reimbursement from tap fees
hereunder shall be subject to the provisions of Sections 7.5.2.,
7.5.3 and 7.5.4 of the Rules and Regulations.
3. Construction. The Distribution Line shall be constructed
in conformance with plans and specifications prepared by Riverview
and approved by the Town's Engineer and in compliance with any and
all requirements and regulations applicable to the construction of
water lines, including, but not limited to the Rules and
Regulations and all other applicable regulations of the Town.
4. Deposit. Prior to the construction of the Distribution
Line, Riverview shall deposit with the Town the amount of five
thousand dollars ($5,000.00) (such amount, the "Deposit") to be
applied toward any costs incurred by the Town in connection with
its inspection and approval of the Distribution Line, including any
engineering fees and legal fees as may be incurred by the Town
pursuant to Section 7.4.3 of the Rules and Regulations. Upon its
2
expenditure of any portion of the Deposit, the Town shall submit to
River-view a writ= en accounting of any such costs. Upon its
approval of the Distribution Line, the Town shall pay- over to
Riverview any unused portion of the Deposit. In the event the Town
expends the entire deposit and requires additional funds pursuant
to its approval of the Distribution Line hereunder, Riverview will
deposit such amounts with the Town, upon the written request of the
Town.
5. Conveyance. After the completion of the Distribution
Line and upon the Town's approval and acceptance of the
Distribution Line, Riverview shall convey the Distribution Line to
the Town, free and clear of any liens and encumbrances. Riverview
shall provide to the Town at the time of such conveyance any and
all easements relating to the Distribution Line and necessary for
the maintenance thereof, including an easement across the Prop--rty,
to Lot 2, as depicted on the attached Exhibit A, in addition to a
copy of reproducible as built drawings of the Distribution Line.
6. Letter of Credit.
(a) Prior to the commencement of construction of the
Distribution Line,. Riverview shall deliver to the Town an
irrevocable letter of credit issued by a lending institution chosen
by Riverview and reasonably acceptable to the Town, in an amount
equal to one hundred and ten percent (1100) of the estimated amount
of the Reimbursable Costs, as set forth on Exhibit B attached
hereto. Upon completion of construction of the Distribution Line
and the Town's acceptance of the Distribution Line, the amount held
under the letter of credit, less those sums described in Section 7
below, shall be released.
(b) Riverview may at any time substitute the letter of
credit deposited with the Town pursuant hereto for another form of
collateral acceptable to the Town to guaranty the faithful
completion of the Distribution Line and the performance of the
terms of this Agreement.
7. Retainage. The Distribution Line shall be warranted to
be free from. defects in workmanship or quality for a period of one
(1) year rafter its acceptance by the Town. In the event any such
defect arises within such period, the Town may require Riverview to
correct such defect. An amount, equal to ten percent (101) of the
total actual cost of completion of the Distribution Line shall be
retained under the letter of credit during such one (1) year period
as a guaranty of performance of any work required pursuant to the
above-described warranty.. In the event any corrective work is
performed during the one (1) year warranty period then the warranty
on said corrected work shall be extended for one (1) year from the
date on which 'it is completed. Riverview agrees to allow one
hundred and twenty-five percent (1251) of the cost of any corrected
work, as estimated and approved by the Town, to be retained under
3
the letter of credit for a period of one (1) year from the date of
completion of the corrected work. Any and all amounts retained by
the Town hereunder- shall be released after the expiration of the
one (1) year warranty period, or one (1) year after the completion
of any correction necessary within such warranty period.
8. Term. This Agreement shall expire ten (10) years from
the date of the acceptance by the Town of the Distribution Line.
Upon the expiration of this Agreement, the Town shall have no
further obligation hereunder, regardless of whether or not
Riverview has recovered one hundred percent (100x) of the
Reimbursable Costs.
9. No Waiver. The failure on the part of either party to
pursue any remedy hereunder shall not constitute a waiver on its
part of the right to pursue said remedy on the basis of the same or
a subsequent breach.
10. Assignment. This Agreement may not be assigned by either
party hereto without the prior written consent of the other party.
11. Governin Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Colorado.
12. Severability. If any term, provision, covenant or
condition hereof or any application thereof should be held by a
court of 'competent jurisdiction to be invalid, void or
unenforceable, all terms, provisions, covenants and conditions
hereof, and all applications thereof not held invalid, void or
unenforceable shall continue in full force and effect and shall in
no way be affected, impaired or invalidated thereby.
13. Counterparts. - This Agreement may be executed in any
number of counterparts, each of which shall be deemed an-original
hereof and all of which together shall constitute but one and the
same instrument.
14. Facsimile. This Agreement may be transmitted by telefax
copier and the parties agree that their signatures which are copied
on the transmitted documents shall be binding as if they were
original signatures.
I WITNESS WHEREOF, the parties have executed this Agreement
as of he date fLFst above written.
RIVER EW ARK S OCIATES, INC.,
By: THE TOWN OF AVON, a Colorado
a Col ad carp r i°v~GG ~re d~lt
Municinalitv
B
4
STATE OF COLORADO }
) SS_
COUNTY OF EAGLE )
The ;o instrument was acknowledged before me this
day of 1996, by: !^Qi7/~C /l/ayarry as
CC~y of Riverview Park Associates, Inc.,
a Colorado corporation.
My commission expires:
S'TE.-~,-OF COLORADO )
OF }
c{ f~
The regoing :instrument was acknowledged y fo e me this
day of 1996, by:_x~ f _JL as
of the Town of Avo a Colorado
MunicipalTity.
My commission expires:
[SEAL]
64-14ires 4/24/97
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EXHIBIT B
Reimbursable Cost Estimate
(attached)
lowrey/costrec3.dc
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Tex
August 1 Q
Mr Frank Na\arro
Rivcrv1e\h ?ark Associat;:s. Inc
P Box 18223
Avon. C<) 8.1620
RE Brookside Park
D:mr Mr Navarro.
T \our request ! L_ Viele Construenon. Inc. and Vanderwalker
Construction. Inc are pro\ idin_ the foilo\\in!-, detailed Cost Estimate for water main extension at
the Brookside project Please note that this is based on the revised design b,, Alpine Enaineerin-_
dated 8 19196 which adds the meterine vault and check valve at the st tie-in to the existing 12"
pipe Please be a\vare that costs on ttemc --1(J. 20. 21 are estimates oniv and are vet to he
confirmed with our supplier
Item Description
Approx.
Quantity
Unit
[nit
Cost
Item
Cost
1. Mobilization
L. S.
1000.00
1000.00
2. Traffic Control Plan
L. S.
500.00
500.00
3. Traffic Control
L. S.
3000.00
3000.00
4. Trenching
1580
Lin. Ft.
23.00
36350.00
5. 8" D.1.P.
1580
Lin. Ft.
10.63
16,800.00
6 Bedding
300
Cu. Ya.
20.00
6000.00
7 Tracer Wire
17UCi
Lin. Ft..
30
500.00 -
8. Backfill `
2k►()(!
Cu Yd.
20:5()
41,000.00
-
9. Asphalt Patch
L. S.
1500.00
1500.00
10 8"x8" Tapping Sleeve
Thrust Block Vah e
1
Ea
1900.00
1900.00
11. 8" Crate Valves
4
Ea
750.00
3000.00
12 8" x 45 deg. Bend w• Thrust
Block
8
Ea
331 ?5
2650.00
. f~' i c. u Thrust Blocl,
I
{ l_.u
425 (10 ~ 8~(1.(K)
14. F.H Assembl\
I
[-,a
! : 0{J() (ti{1 h(t(?0 (J()
15. 8" x 8" Tee w Thrust Block
i
( Ea
1100.00
~ -zoo o6) )
16 8" Pig ,.-w Thrust Block
I
Ea.
-50.00
`50.00
17 8" x deu bend xk Thrust
Blocs,
2
5. 00
,
18. 8" x 90 deg. Bend "fhrt)st
Block
I
Ea
X5( (►0
X50.00
19 5' Precast M.H.
T
1
Ea.
X50(? 00
3500.0c)
-0 R" Check Valve
l
I.a ~
=1700.00
17000()
2l . 8" Compound Meter
I
Ea
1 1 3,00.00
11.3oom
1 2?. 12" x S" Tapping Sleeve &
Valve
1
Ea
2100 00
2100,00
subtotal S1,11.50000
Contractor's Fee 7,782.';0
Total: $149.282.50
sincere
\Villiam Wilson
Project Manager
cc: 1im Wear
Nonn Wood
Rick Pyleman