Loading...
HomeMy WebLinkAbout2001-03-13; City Council; 16111; Aviara Phase III Water & Sewer PipelineQ !5 0 E % . . e 2 2 P CITY OF CARLSBADKARLSBAD MUNICIPAL WATER DISTRICT - A &B# /b; /// TITLE- . APPROVE AND AUTHORIZE EXECUTION OF REIMBURSEMENT AGREEMENT WITH AVIARA LAND MTG. . L 3-/3+‘1 ASSOCIATES LIMITED PARTNERSHIP, FOR WATER PIPELINE, RECLAIMED WATER PIPELINE AND SEWER PIPELINE DEPT. ENG IMPROVEMENTS WITHIN AVIARA PHASE III, UNIT NO.1 PROJECT NOS. 35851136581 AND 36752 RECOMMENDED ACTION: Carlsbad Municipal Water District Board of Directors: Adopt Resolution No. IlIB to approve and authorize execution of a reimbursement agreement with Aviara Land Associates Limited Partnership for water and reclaimed water pipeline improvements within Aviara Phase III, Unit No. 1. City of Carlsbad City Council: Adopt Resolution No. dloo~-80 to approve and authorize execution of a reimbursement agreement between Aviara Land Associates Limited Partnership and City of Carlsbad for sewer pipeline improvements within Aviara Phase III, Unit No. 1. ITEM EXPLANATION: The Aviara Land Associates Limited Partnership is the developer for Aviara Phase Ill, Unit No. 1. They constructed a 30-inch diameter potable water transmission pipeline, a l&inch diameter potable water transmission pipeline, an 18-inch diameter reclaimed water transmission pipeline and an 8-inch diameter sewer pipeline in Poinsettia Lane, Cassia Road and Ambrosia Lane within Aviara Phase III as a part of the water and sewer master plans. Portions of the 1%inch diameter potable water transmission pipeline and l&inch reclaimed water transmission pipeline were oversized from 8-inch diameter pipeline size. As a condition of project approval, Aviara Land Associates Limited Partnership is required to construct within Aviara Phase Ill, Unit No. 1, the water, sewer and reclaimed water pipelines. The pipeline plans, prepared by P&D Consultants, are shown on City Drawing No. 341-5, Sheets 7, 8, 9 and 21 dated November 11, 1998. Aviara Land Associates Limited Partnership has provided a reimbursement cost estimate of $280,005 for the water and reclaimed water pipeline improvements, and $18,182 for the sewer pipeline improvements. District Ordinance No. 26 provides for a reimbursement agreement on facilities greater in size than what is required to serve the development. City Ordinance No. 13.08.060 provides for a method of reimbursement to the developer that is attributable to the benefit of real property outside of the development. The Aviara Land Associates Limited Partnership has agreed to construct the water and reclaimed water pipeline improvements through a reimbursement agreement with the District, and sewer pipeline improvements through a reimbursement agreement with the City. ENVIRONMENTAL REVIEW: The Planning Director has determined that the requested action is consistent with CEQA review. A Mitigated Negative Declaration dated September 14, 1993, a General Plan Amendment (GPA 93-06) a Master Plan Amendment (MP 1776) a Local coastal Program Amendment (LCPA 92- 01) a Tentative Tract Map (CT92-03) and a Hillside Development Permit (HDP 92-04) were adopted by the Planning Commission and approved by the City Council on February 8, 1994 by Resolution No. 94-41. These CEQA documents identify no environmental impact related to the activities referenced in the Reimbursement Agreements. Page 2 of Agenda Bill No. 19 /// FISCAL IMPACT: The total cost for the work covered by the reimbursement agreements is $298,187 and will be paid from the projects as shown below: TABLE 1 TABLE 3 This 18” recycled water pipeline is part of Phase II of the Encina Basin Water Reclamation Project. The project includes a new 4 mgd advanced tertiary treatment facility as well as the necessary transmission and distribution systems. The total project will cost approximately $37 million of which Council previously appropriated $4 million for design and miscellaneous expenses until debt financing is arranged. There are sufficient funds available from the initial appropriation for this reimbursement. TABLE 4 Thus, appropriations are currently available to cover reimbursements to Aviara Land Associates, LP for the costs of the water improvements. An additional appropriation of $18,200 is requested from the Sewer Replacement Fund to pay for reimbursement of the sewer improvements. a Page 3 of Agenda Bill No. )b,, // / EXHIBITS: 1. 2. 3. 4. 5. Location Map. Agreement for Reimbursement of costs for the construction of water and reclaimed water pipeline improvements within Aviara Phase Ill, Unit No. 1 between Carlsbad Municipal Water District and Aviara Land Associates Limited Partnership. Agreement for Reimbursement of costs for the construction of Sewer Pipeline Improvements within Aviara Phase III, Unit No. 1 between the City of Carlsbad and Aviara Land Associates Limited Partnership. District Resolution No. ///8 to approve and authorize execution of a reimbursement agreement with Aviara Land Associates Limited Partnership, for water and reclaimed water pipeline improvements within Aviara Phase II, Unit No. 1, Project Nos. 35851 and 36581. City Resolution No. &@‘-m to approve and authorize execution of a reimbursement agreement with Aviara Land Associates Limited Partnership, for sewer pipeline improvements within Aviara Phase III, Unit No. 1. 3 I--y- - - j - ,,H l ~~ I i J k I )(I : ,,/ ‘\ iii 1 :i I’ ‘1 I( I) r I I -r-- w L--l I I -A-- l --- I A VIARA 4 CT 92-3-I-PHASE 111, UN/T 7 30" STEEL (550 HGL) WATER TRANSMISSION PlPELlNE EXHIBIT’7 SHEET 1 OF 6 A VlARA OAKS SCHOOL SCALE I” = 500’ NOTE: 12” PVC (375 HGL) DISlRitXITiON WATER PlPELlNE CONSTRUCT/ON PER DWG NO. 341-5, SHEET NO. 8. (POINSETTIA LANE EAST 0~ AMBROSIA LANE) / ~~~~~~~~~:,~-,---------~ I i J$Y$TgQ.;, I I ! \ \ 5 I.. \c= r-T-- -- -- /----- ,% I \I: ,/' / \\ 'X I I/ I !l \j :-/' l. ,' ! 1 j../ / 11) I I/ I POiNSETTiA LANE ---- I I ---i I J --A I I I II-. / _4 ,i-' c I I I I A WAR4 CT 32-3-I-PHASE i/1, UN/T 1 72” PVC (375 HGL) DISlRiBU7/ON WATER PlPELlNE CONSTRUCT/ON EXHlSlT 7 SHEET 2 OF 6 POINSETTIA LANE SCALE 1” = 500’ NOTE: 12” PVC (375 HGL) DISTRlBU7lON WA TER PlPELlNf OVfRSlZlNG PER 1 - - 7 - -,,,/-- ;., ,~ I ’ ,,I ‘k %~ 1. i c’ is- ///” i -7 Cl 92-3-I-PHASE 111, UNIT 1 12” PVC (375 HGL) DISTRlBUTlON WATER PlPfLlNf OVERSIZING EXHIBIT I SHEET 3 OF 6 SCALE 7" = 500' NOTE: 18" PVC (384 HGL) TRANSMiSSlON RECLAiMED WATER PlPfLiNE CONSTRUCT/ON PER DWG NO. 34?- SHEET ~0. 6 (AMBROSIA LANE NORTH OF POiNSETTiA LANE) .5, , ‘, I ; ! 78’ RECUlMED i I I 1 --1 -- J I I I :I 3 j,/- I-' I I I I POiNSETTlA Lk AVIARA Cl 92-3-l-PHASE i/1, UNIT I 18" PVC (384 HGL) TRANSMlSSlON RECLAIMED WATER PlPELlNE CONSTRUCliON .d-...- /<\.it_~ +-._ __ ‘1 i...- I --- idIll I-- --_ I b-- --- --- -- l +-- -- l I i .- I--- t -- --- I c-- __ l--q \ I i , Y I-- l +-- - -. AVIARA OAKS SCHOOL 7 EXHIBIT 7 SHEET 4 OF 6 SCALE 1” = 500’ NOTE: 18” PVC (384 HGL) TRANSMiSSlON RECLAiMED WATER PiPELlNE OVERSlZlNG PER DWG NO. 347-5, SHEET NO. 7, 8 AND 21. ( POlNSf LANE AND CASSIA ROAD) ----------# I ‘TTiA I I I y - - -T- - ;,,y-- c / l\ ~~ _~, I '\\ I \ i//' j/L I\ 1 I 1) I Ii 78” RECLAIMED , WATER I I I I i '\ I I --1 -- J --A I I I l.:i . ,,JI--- Y I I I --%___ I/' I I i A VIARA CT 92-3-I-PHASE 111, UN/T 1 18” PVC (384 HGL) TRANSMISSION RECLAIMED WA TfR PIPELINE OVERSiZlNG A ViARA OAKS SCHOOL EXHIBIT I SHEET 5 OF 6 SCALE 1" = 500' NOTE: 8" SEWER PIPELINE IS PER DWG NO. 347-5. SHEET NO. 7 I -- / - - ,,/-- l\ ’ \ .\ I \ i ,/ ‘~, ‘,I 1 l I ‘/.’ ]//// I 'j I I/ I Pt7lN$FTT/A I Ad - I --A I --+ I :j I I I,' --7 I 3 L-1 r’ I I I I A WARA A WARA 92-3-l-PHASE 111, UN/T I 8" SEWER PlPEllNE 92-3-l-PHASE 111, UN/T I 8" SEWER PlPEllNE AWARA OAKS SCHOOL 9 EXHIBIT I CUC.CT K OF 6 AGREEMENT FOR REIMBURSEMENT OF COSTS FOR THE CONSTRUCTION OF WATER AND RECLAlMED WATER PIPELINE IMPROVEMENTS WITHIN AVIARA PHASE III, UNIT NO. 1 Between CARLSBAD MUNICIPAL WATER DISTRICT And AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP Rev. l/02/01 -1 - AGREEMENT FOR REIMBURSEMENT OF COSTS FOR THE CONSTRUCTION OF WATER AND RECLAIMED WATER PIPELINE IMPROVEMENTS WITHIN AVIARA PHASE Ill, UNIT NO. 1 (AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP) This Agreement for Reimbursement of Costs for the Construction of Water and Reclaimed Water Pipeline Improvements within Aviara Phase III, Unit No. 1, dated as of March 19 2001 (“Agreement”), is made at San Diego County, California, by and between the CARLSBAD MUNICIPAL WATER DISTRICT, a Public Agency organized under the Municipal Water District Act of 1911, and a Subsidiary District of the City of Carlsbad (“District”), and AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP, a Delaware Limited Partnership (“Developer”), with reference to the following recitals; RECITALS A. Developer owned from 1988 to 1999 a certain real property commonly known as Aviara Phase Ill, Unit No. 1, located in the City of Carlsbad, California (the “City”), more particularly described as Carlsbad Tract No. 92-03, filed in the Office of the County Recorder of San Diego County on June 23,1997, as File No. 13434. B. The Planning Commission of the City adopted a series of resolutions on December 1, 1993 approving the Aviara Phase III, Unit No. 1 project. A Mitigated Negative Declaration dated September 14, 1993, a General Plan Amendment (GPA 93-06) a Master Plan Amendment (MP 1776) a Local Coastal Program Amendment (LCPA 92-01). a Tentative Tract Map (CT 92-03) and a Hillside Development Permit (HDP 92-04). All of such Planning Commission actions were adopted and approved by the City Council of the City of Carlsbad on February 8, 1994 (City Council Resolution No. 94-41). C. The Aviara Phase Ill, Unit No. 1 project approvals require Aviara to install water and reclaimed water pipelines in Poinsettia Lane, Ambrosia Lane, and Cassia Road to meet the needs of the homes and apartments to be built within Aviara Phase Ill, Unit No. 1 (the “Project Requirements”). D. The District has requested Developer to install a 30-inch diameter potable water transmission pipeline, a 12-inch diameter potable water transmission pipeline, an 18-inch diameter reclaimed water transmission pipeline and other improvements in Poinsettia Lane, Cassia Road, and Ambrosia Lane, collectively referred to as the ‘Water Work” and described more particularly in Section 3 (a) below. E. The District and Aviara recognize that the Water Work exceeds the infrastructure otherwise required of Aviara in connection with its build-out of Aviara Phase III, Unit No. 1. Aviara agrees to install or cause the installation of the Water Work provided that the District agrees to reimburse Aviara as set forth in this Agreement. F. District and Developer acknowledge that Government Code Section 66485 allows the District to require a sub-divider to construct improvements benefiting property outside the subdivision; but Section 66486 requires the District to enter into a reimbursement agreement for such improvements. The parties intend that this agreement satisfy the requirements of Government Code Section 66486. Rev. l/02/01 -2 - NOW, THEREFORE, the District and Developer agree as follows: 1. Recitals. The Recitals are true and correct and incorporated herein by this reference. 2. Satisfaction of Obliaation. Developer’s agreement to perform the Water Work, as set forth herein, and the actual construction thereof, shall fully satisfy and constitute compliance with all requirements regarding Aviara Phase Ill, Unit No. 1 solely with respect to the Water Work. 3. General Developer Obliaations. (a) In consideration of the District’s reimbursement and other undertakings as set forth herein, Developer agrees to install the Water Work, which shall include the following improvements, as shown on City Drawing No. 341-5, Sheets 7, 8, and 21, dated November 11, 1998, prepared by P&D Consultants (the “Plans”) and as shown in the attached Exhibit “A” and “6” which is incorporated herein by reference: 0) (ii) (iii) (iv) of) Construction of approximately 1,446 lineal feet of 30-inch diameter steel CML&C (550 HGL) potable water transmission pipeline and 50 lineal feet of 18-inch diameter 10 gauge steel CML&C (550 HGL) potable water pipeline connection to existing in Poinsettia Lane and Cassia Road; Construction of approximately 861 lineal feet of 12-inch diameter PVC Class 150 (375 HGL) potable water transmission pipeline in Poinsettia Lane east of Ambrosia Lane; Oversizing of approximately 597 lineal feet of 12-inch diameter PVC Class 150 (375 HGL) potable water transmission pipeline in Poinsettia Lane west of Ambrosia Lane; Construction of approximately 509 lineal feet of 18-inch diameter PVC DR-18 (384 HGL) reclaimed water transmission pipeline and 31 lineal feet of 8-inch diameter PVC connection to existing in Ambrosia Lane north of Poinsettia Lane; and Oversizing of approximately 1,499 lineal feet of 18-inch diameter PVC DR-18 (384 HGL) reclaimed water transmission pipeline in Poinsettia Lane and Cassia Road and approximately 115 lineal feet of 12-inch diameter PVC (384 HGL) recycled water transmission pipeline in Poinsettia Lane. The Water Work shall include all necessary valves and appurtenances, including those necessary to connect the Water Work to the District’s pipelines in both Poinsettia Lane and Cassia Road. Rev.1/02/01 -3 - 09 (c) (9 Any portion of the Water Work completed before the effective date of this Agreement shall be included as a part of the Water Work for reimbursement, subject to the other provisions of this Agreement. Developer shall install the Water Work substantially in compliance with the District-approved plans and specifications, and other design documentation for the Water Work. Developer shall cause construction of all Non Reimbursable Work at Developer’s cost. By entering into this Agreement, Developer waives any and all potential constitutional objections (Nolan/Dolan) relating to the Water Work improvements. It shall be the responsibility of the Developer to observe and follow the requirements of District for retention of records and the submittal of information in connection with the Water Work Improvements, as specified in this Agreement. 4. General Develooer Obliuations. (a) The District shall reimburse Developer an amount (the “Reimbursement Amount”) equal to: (i) the actual Total Cost for reimbursement for construction of oversizing; plus (ii) an allowance for overhead as described in Section 6 (9 below. The actual Total Reimbursable Cost shall include all costs associated with the installation of the Water Work noted in the attached Exhibits “B” and “C” which are incorporated herein by reference. The Total Reimbursable Cost is currently estimated to be $280,005, calculated as follows: (b) District agrees to reimburse Developer for Reimbursable Water Work as described in Sections 6 and 7 below. 5. Reimbursable Water Work. (a) With respect to all hard costs of construction comprising the Water Work Improvements, Developer shall solicit bids from three reputable contractors. Reimbursable Water Work may be bid together with Non Reimbursable work for that portion of the Water Work Improvements which are being bid by such contractor. Upon agreement of a contract amount for the Water Work, the costs thereof shall be allocated among the categories consistent with the method and process used in the Exhibit “C.” The parties agree that the spreadsheet attached hereto as Exhibit “c” is a fair allocation of the costs under such contract as among the categories of Reimbursable Water Work. Costs shown in Exhibit “c” are subject to modification through change orders pursuant to Paragraph 6(h) of this Agreement. Rev.1/02/01 -4- W During the performance of any Reimbursable Water Work, Developer shall retain detailed payment records for all items of Reimbursable Water Work, for use by District in auditing subsequent reimbursement requests by Developer. Developer’s requests for reimbursement (each a “Reimbursement Request”) shall include copies of plans, specifications, engineer’s cost estimates, bids received, contracts, change orders, invoices, payment slips, canceled checks (front and back), lien releases and other documentation reasonably required by District to evidence the completion and payment for each item of Reimbursable Water Work. Reimbursement Requests may be submitted monthly in arrears, as identified in Section 6 (a) below, by Developer for each segment of work. 6. Audit of Reimbursable Expenses. (a) (W (cl 69 Expenses for Reimbursable Water Work (including without limitation overhead and the allowance permitted under clause (9 below) are referred to herein collectively as “Reimbursable Expenses”. Developer shall be entitled to submit requests for Reimbursable Expenses monthly in arrears, and separately for each construction segment: All Developer’s Reimbursement Requests will be processed and audited for District by a reputable consulting engineer selected by District (“Auditing Engineer”). The costs of the Auditing Engineer shall be paid directly by District from Water Connection Funds. The Auditing Engineer shall review all Reimbursement Requests and the payment records submitted in connection therewith and shall within thirty (30) days thereafter issue to District and Developer a report either accepting Developer’s submittal or specifying with particularity any reimbursement items or amounts not approved. Any reimbursement items or amounts not approved by the Auditing Engineer may be further pursued by Developer using the dispute resolution provision of Section 8 below. With each Reimbursement Request, following 30-day review by Auditing Engineer, the Auditing Engineer shall forward one copy of each invoice submitted to Developer by Contractor, to the City’s Public Works Director (“Director”), together with an invoice for all other components of the Actual Cost not otherwise reflected on the Contractor’s invoice. The Director shall confirm and approve the Reimbursement Amount based upon the components of Actual Costs and Overhead Costs set forth in Section 5 of this Agreement. If the Director objects to any items comprising the Reimbursement Amount, the Director shall notify Developer within thirty (30) days of receipt of all invoices forwarded by Developer. Failure to so notify Developer shall be deemed the Director’s approval of such invoices. Rev. l/02/01 -5 - (e) District’s reimbursement obligations hereunder shall be based upon the actual costs incurred by Developer in performing Reimbursable Work (including overhead and the allowances specified in (f) below). (9 Notwithstanding anything herein to the contrary, and without limitation and in addition to the Reimbursable Work, District specifically agrees that each of the following shall be deemed Reimbursable Expenses: (ii) (iii) An allowance to wver the allocable portion of premiums paid by Developer for improvement and/or payment and performance bonds relating to the construction of Water Work are included in (iii) overhead expense. An allowance to wver the allocable portion of premiums paid by Developer for blanket liability insurance coverage is included in (iii) overhead expenses. An amount fixed at five percent (5%) of the eligible costs for Reimbursable Work, exclusive of this clause (9, to compensate for overhead expenses incurred by Developer including for salary and benefits, for staff of Developer’s home office, purchasing department expenses, project supervision, general corporate legal and accounting fees and other normal overhead expenses incurred by Developer, including the expenses described in subsections (f)(i) and (f)(ii) above. (cl) Prior to the submission to the Director of all invoices, Developer shall obtain necessary or appropriate lien releases from the Contractor, and shall obtain from the District and all appropriate governmental agencies, all approvals, certificates, and other documents necessary to indicate the completion of the Reimbursable Work, and the ability to put the Public Improvements into use. The date Developer receives all such final lien releases, approvals, and certificates shall be deemed the date of completion of the Water Work Improvements (the “Completion Date”). U-0 All change orders shall be subject to approval by both the District and Developer. At the time of approval, the parties shall also determine the portion of the change order which is allocated to Reimbursable Work. In making such decisions, the parties shall be guided by the principle that if a change order is necessary due to changed circumstances or oversight in original design, or if it is required in order to perform the applicable portion of the Water Work Improvements in an orderly, reasonable and prudent manner according to the standard engineering and construction practice applicable to the improvements, then the allocation of the portion to Reimbursable Work should be in proportion to the allocation as between Reimbursable Work in Exhibit “C” for that portion of the Water Work Improvements. Rev. l/02/01 -6 - 7. Payment of Reimbursable Exoenses. (a) Payment of Reimbursable Expenses shall be made, within sixty (60) days after the Auditing Engineer’s determination on any such Reimbursement Request (or determination pursuant to Section 8 if applicable). (W The District shall not unreasonably withhold acceptance of the Water Work Improvements. w Developer and District agree that the City’s General Fund is not part of this Agreement, and shall not be obligated under the terms of this Agreement nor available for reimbursement purposes. 8. DisoutesKlaims. If a dispute should arise regarding the performance or interpretation of this Agreement, the following procedure shall be used to resolve any question of fact or interpretation not informally resolved by the parties. Such questions, if they become identified as a part of a dispute among persons operating under the provisions of this Agreement shall be reduced to writing by the principal of Developer or the Director. A copy of such documented dispute shall be forwarded to both parties involved along with recommended methods of resolution which would be of benefit to both parties. The Director, or principal, upon receipt, shall reply to the letter, including a recommended method of resolution within ten (10) days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the dispute shall be forwarded to the Board of Directors for their resolution through the office of the Executive Manager. The Board of Directors may, but is not obligated to resolve the dispute. If the Board of Directors considers the dispute, and directs a solution, the action of the Board of Directors shall be binding upon the parties involved, although nothing in this procedure shall prohibit the parties from seeking remedies available to them at law. 9. Successors: Covenant to Run with Real Prooertv This Agreement and the covenants contained herein shall be binding upon and inure to the benefit of the Developer and District and shall run with the real property and create an equitable servitude upon the real property. Upon the application of the credit referred to in Section 7(a) for each respective Unit and after District acceptance of District Improvements, the provisions of this Agreement shall no longer apply to, and the same shall no longer be or constitute an equitable servitude against or run with the land as to the respective Units and the equitable servitude hereby created shall automatically terminate as to each of said respective Units. Upon the request of Developer, District shall execute and deliver to Developer, in recordable form, any further documents and/or instruments reasonably necessary to evidence that each said Unit is thereafter fully released and free from the provisions of this Agreement, provided that the cost of preparing and recording such documents and/or instruments shall be paid by Developer. 10. Assiqnment of Contract. The Contractor shall not assign this contract or any part thereof or any monies due thereunder without the prior written consent of the District. Rev. l/02/01 -7 - 11. Notices. Unless otherwise specifically provided herein, all notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly delivered upon personal delivery, or by Federal Express (or similar reputable express delivery service), or by facsimile transmission with back-up copy mailed the same day, or as of the second business day after mailing by United States Certified Mail, return receipt requested, postage prepaid, address as specified herein. Notices required to be given to Developer shall be addressed as follows: Aviara Land Associates Limited Partnership Attention: Scott Medansky 2011 Palomar Airport Road, Suite 112 Carlsbad, CA 92009 ,Telephone: (760) 931-I 190 FAX: (760) 931-7950 Notices to District shall be delivered to the following: CARLSBAD MUNICIPAL WATER DISTRICT c/o City of Carlsbad Attention: Public Works Director 1635 Faraday Avenue Carlsbad, CA 92008 Telephone: (760) 6022730 FAX: (760) 602-8562 Each party shall notify the other immediately of any changes of address that would require any notice delivered hereunder to be directed to another address. 12. Transfer bv Develooer. The obligations and benefits of this Agreement shall not be transferred upon sale of Aviara Phase Ill, Unit No. 1. 13. Counteroarts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute one and the same instrument. 14. Governins Law and Venue. This Agreement shall be interpreted and enforced under the laws of the State of California, and venue shall reside in San Diego County, California. 15. Comolete Aoreement. This Agreement contains the entire agreement between the parties with respect to the subject matter contained herein, and supersedes all negotiations, discussions, and prior drafts with respect to this subject matter. 16. Amendment. This Agreement may be amended by a written instrument executed by District and Developer (including for this purpose any successors of Developer, to the extent of their ownership of real property within Aviara Phase Ill, Unit No. 1); except that no amendment regarding the provisions for reimbursement to Developer shall be valid unless executed by Developer. 17. Term. This Agreement shall be effective as of the date first above written, and shall terminate on the earlier of (i) the date the District fully reimburses Developer the Reimbursement Amount, or (ii) January I, 2015. Rev. l/02/01 -a - 18. No Third Partv Beneficiaries. This Agreement shall not be deemed to confer any rights upon any individual or entity which is not a party hereto, and the parties hereto expressly disclaim any such third-party benefit. 19. The invalidity or unenforceability of any provision of this Severabilitv. Agreement, as determined by a court of competent jurisdiction, shall in no way affect the validity or enforceability of any other provision hereof. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP, a Delaware Limited Partnership CARLSBAD MUNICIPAL WATER DISTRICT, (print name and title ofblgnatory) (Proper notarial acknowledgment of execution by Contractor must be attached. Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant treasurer must sign for corporations. Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.) APPROVE P AS TO FORM: Rev. l/02/01 -9 - State of California County of On Public, per&ally bppeared personally known to me or , , Notary he basis \! of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and GINA OORT State of California I i County of 1 I On before me, , Notary Public, personally appeared Claude Lewis personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscmo the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. -lO- Rev. l/02/01 SCALE: 1”=400’ NOTE: 3n” STFFI fSScI HCI j WATFR POlN!SETllA LANE - .--w TRA~SMissl~~-Pi~~~i.Pi-d ~WG NO. 341-5, SHEET NO. 8 AND 27 (POINSETTIA LANE AND CASSIA ROAD) I-1-A \ AMARA k- t- 11 i -- - uu J- I h f ;I F L -- [I ;-- ‘\/ -- L -- -- 4VlARA OAKS SCHOOL CT 92-3-l PHASE 111, UNtT I 30” STEEL (550 HGL) WATER TRANSMISSION PIPELINE EXHIBIT A SHEET 1 OF 5 .._. _..,^ I B SCALE: 1”=400’ POINSETTIA LANE NOTE: 12” PVC (375 HGL) DISTRIBUTION WATER PIPELINE CONSTRUCTlON PER DWG NO. 341-5, SHEET NO. 8. (POINSETTIA LANE EAST OF AMBROSIA LANE) -F-Y~- Y . . . 1 CT 92-3-l PHASE Ill, UNIT I 12” PVC (375 HGL) DISTRIBUTION WATER PIPELINE CONSTRUCTION EXHiiBIT A AVIARA OAKS SCHOOL L-7 -----f- ’ J A’ I( t \ / L-J 7 I I SCALE: 1” = 400’ NOTE: 12” PVC (375 HGL) DISTRIBUX’ON WATER PIPELINE OVERSIZING PER OWG NO. 341-5, SHEET NO. 7. (POINSETTlA LANE WEST OF AMBROSIA LANE) / Y$J-Jji SCHoa CT 92-3-l PHASE Ill, UNIT I I--W 12” PVC (375 HGL) DISTRIBUTION WATER EXHIBIT A PIPELINE OVERSIZING SHEET 3 OF 5 POlNSEl-llA LANE [+-- SCALE: 1”=400’ NOTE: 18” PVC (384 HGL) TRANSMISSION RECLAIMED WATER PIPELINE CONSTRUCTION PER DWG NO. 341-5, SHEET NO. 6. (AMBROSIA LANE NORTH OF POlNSETTlA LANE) CT 92-3-l PHASE III, UNIT I 18” PVC (384 HGL) TRANSMISSION RECLAIMED WATER PIPELINE CONSTRUCTION AVlARA OAKS SCHOOL EXHIBIT A SHEET 4 OF 5 POINSETTIA LANE SCALE: l”=kOO’ NOTE: 18” PVC (384 HGL) TRANSMlSSlON RECLAIMED WATER PIPELINE OVERSIZING PER DWG NO. 341-5, SHEET ~0. 7, 8 AND 21. (POINSETTIA LANE AND CASSIA ROAD) 1\- -----7 ’ J r’/’ I i \ r’ LJ 7 I I I \ CT 92-3-l PHASE Ill, UNIT I 18” PVC (384 HGL) TRANSMISSION RECLAIMED WATER PIPELINE OVERSIZING AVlARA OAKS SCHOol EXHIBIT A SHEET 5 OF 5 EXHIBIT “B” AVIARA - POINSETTIA LANE AND CASSIA ROAD 30 INCH STEEL (550 HGL) WATER TRANSMISSION PIPELINE QUANTITY TAKE-OFF CONSTRUCTION OF PIPELINE, 8/24/00 CITY OF CARLSBAD SPOOL EA 0 0 1 1 WATER TEST STATION EA 0 0 0 0 CONNECT TO EXlSTiNG 18” STL W EA 1 0 0 1 Notes: (1) The quantities shown above are from AS-BUILT Drawing No. 341-5, Sheets 7,8 and 21, City dated 1 l/9/98. (2) The 30” ML/MC steel water main is 8 gauge with class “E” flanges. AH Joints welded a minimum of two passes. EXHIBIT B Sheet 1 of 5 AVIARA - POINSETTIA LANE EAST OF AMBROSIA LANE 12 INCH PVC (375 HGL) DISTRIBUTION WATER PIPELINE QUANTITY TAKE-OFF CONSTRUCTION OF PIPELINE, g/24/00 CIN OF CARLSBAD Notes: (1) The quantities shown above are from AS-BUILT Drawing No. 341-5, Sheets 7,8 and 21, City dated 1 l/9/98. (2) The takeoff for the 12” water in Poinsettia Lane includes the tee, 45 degree bend and the gate valves at the Poinsettia Lane/Ambrosia Lane intersection. (3) The 12” water in Poinsettia/Ambrosia intersection (Sheet 8) includes the tee and valves for water in Ambrosia Lane south of intersection. EXHIBIT B Sheet 2 of 5 EXHIBIT “B” AVIARA - POlNSElTlA LANE WEST OF AMBROSIA LANE 12 INCH PVC (375 HGL) DISTRIBUTION WATER PIPELINE QUANTITY TAKE-OFF OVERSIZING OF PIPELINE, g/24/00 CITY OF CARLSBAD Notes: (1) The quantities shown above are from AS-BUILT Drawing No. 341-5, Sheets 7,8 and 21, City dated 1119198. EXHIBIT B Sheet 3 of 5 EXHIBIT “B” AVIARA - AMBROSIA LANE NORTH OF POINSETTIA LANE 18 INCH PVC (384 HGL) TRANSMISSION RECLAIMED WATER PIPELINE QUANTITY TAKE-OFF CONSTRUCTION OF PIPELINE, g/24/00 CITY OF CARLSBAD Notes: (1) The quantities shown above are from AS-BUILT Drawing No. 341-5, Sheet 6, City dated 11/9/98. (2) The takeoff for the 18” RMJ water in Ambrosia Lane includes cross and valves at Poinsettia Lane/Ambrosia Lane intersection. (3) The connect to existing for the 18” R/W in Ambrosia Lane consists of a 12” valve and a 12” x 18” reducer. EXHIBIT B Sheet 4 of 5 EXHIBIT “B” AVIARA - POINSETTIA LANE AND CASSIA ROAD 18 INCH PVC (384 HGL) TRANSMISSION RECLAIMED WATER PIPELINE QUANTITY TAKE-OFF OVERSIZING OF PIPELINE, g/24/00 CITY OF CARLSBAD : RESTR. EA 1 01 01 01 OJ Notes: (1) The quantities shown above are from AS-BUILT Drawing No. 341-5, Sheets 7,8 and 21, Cii dated 1119198. (2) The takeoff for the 18” R/W water in Poinsettia Lane does not include the cross and valves at Poinsettia Lane/Ambrosia Lane intersection. This is included in the quantity takeoff for the reclaimed water in Ambrosia Lane. EXHIBIT B Sheet 5 of 5 EXHIBIT “c” AVIARA - POlNSElTlA LANE, AMBROSIA LANE AND CASSIA ROAD WATER AND RECLAIMED WATER PIPELINE IMPROVEMENTS REIMBURSEMENT FOR CONSTRUCTION OF OVERSIZING SUMMARY 11/02/00 1. Poinsettia Lane and Cassia Road - 30-inch steel (550 HGL) water transmission pipeline: Construction 2. Poinsettia Lane east of Ambrosia Lane - 12-inch PVC (375 HGL) distribution water pipeline: Construction 3. Poinsettia Lane west of Ambrosia Lane - 12-inch PVC (375 HGL) distribution water pipeline: Oversizing 4. Ambrosia Lane north of Poinsettia Lane - l&inch PVC (384 HGL) reclaimed water transmission pipeline: Construction 5. Poinsettia Lane and Cassia Road - 18-inch PVC (384 HGL) reclaimed water transmission pipeline: Oversizing TOTAL REIMBURSEMENT $160,992.79 $26,063.50 $2,984.65 $34,961.94 $41,668.00 $266,670.88 See Tables 1 through 5. EXHIBIT C Sheet 1 of 6 EXHIBIT “C” TABLE 1 AVIARA - POINSETTIA LANE AND CASSIA ROAD 30 INCH STEEL (550 HGL) WATER TRANSMISSION PIPELINE REIMBURSABLE COST: CONSTRUCTION OF PIPELINE, 11/02/00 WATER-DOMESTIC 30’ a GA STL ML&MC 18” 10 GA STL ML&MC END CAP LF w45.58 LF 50.00 EA 2.00 73.65 58.50 (1) co-04 $106,466.97 (1) $2,925.00 121 so.00 2” MAF 2” AVA 30” X 30” X 18” TE 30” X 30” X 12” X 12” CROSS W-17 TB t 1 EA 1 1.00 1 750.00 (1) $750.00 1 EA 1.00 1,500.00 (1) $1,500) iE 1 1 I (2) so.1 r-i% I 1 EA 1 1 EA 1 1.00 r 1.00 I 0.00 1 3,300.oo 1 ! co-08 I (2) 1 00 S3,300.00: $0.00 30” FL BFV FLXPJ BEND W/ TB 2” B.O. 30” 90 FLG. X FLG.ELBOW 10” FLG. X FL& B.V. 10’ FLG. X P.J. ADAPTER .--..~ -~~~- ~ SPOOL WATER TEST STATION CONNECT TO EXISTING 18’ STL W FIELD WELD ALL JOINTS (CO-14) 2” WATER SERVICE ON E> EA EA EA 1 EA 1 1 EA 1 EA EA ..-- ---00 EA 0.00 so.00 EA 1 .oo (2) $0.00 LS 1 .oo 9.500.00 co-14 $9,500.00 3.00 1 .oo 1 .oo 1.00 1 1 .oo 1 .oo 1.00 7.200.00 1,700.00 800.00 2,400.OO 7,200.OO (1) co-08 (1) CO-08 (1) (2) 121 $21,600.00 s1,700.00 saoo.00 $2,400.00 $7,200.00 so.00 SO.1 (IST. STL. LINE 1 LS 1 1.00 I 2,850.82 1 (3) 1 S2,850.82 I I I I I $160,992.79 Notes: CO Contract change order. (1) Constwtion Contract, Kennedy Pipeline Company, 1997. (2) Cost is included in other items specified in Constructiin Contract. (3) Work requested and approved for reimbursement by Randy Klaahsen (Invoice Payment No. 13). EXHIBIT C Sheet 2 of 6 EXHIBIT “C” TABLE 2 AVIARA - POlNSElllA LANE EAST OF AMBROSIA LANE 12 INCH PVC (375 HGL) DISTRIBUTION WATER PIPELINE REIMBURSABLE COST: CONSTRUCTION OF PIPELINE, 11/02/00 Notes: CO Contract change order. (1) Construction Contract, Kennedy Pipeline Company, 1997. (2) Cost is included in other items specified in Constnrction Contract. EXHIBIT C Sheet 3 of 6 EXHIBIT “C” TABLE 3 AVIARA - POINSETTIA LANE WEST OF AMBROSIA LANE 12 INCH PVC (375 HGL) DISTRIBUTION WATER PIPELINE REIMBURSABLE COST: OVERSIZING OF PIPELINE, 1 l/02/00 1 WATER-DOMESTIC I I I I I I 12” PVC CLASS 150 LF 598.93 25.00 (1) $14.923.25 12” FL X PJ GV EA 0.00 - $0.00 END CAP EA 1.00 (2) so.00 12” TEE WI TB EA 0.00 $0.00 45 BEND WI TB EA 0.00 $0.00 2” MAR EA 0.00 $0.00 2” 0.0. EA 0.00 so.00 Notes: CO Contract change order. (1) Construction Contract, Kennedy Pipeline Company, 1997. (2) Cost is included in other items specified in Construction Contract. EXHIBIT C Sheet 4 of 6 EXHIBIT “C” TABLE 4 AVlARA - AMBROSIA LANE NORTH OF POINSETTIA LANE 18 INCH PVC (384 HGL) TRANSMISSION RECLAIMED WATER PIPELINE REIMBURSABLE COST: CONSTRUCTION OF PIPELINE, 11/02/00 ~T~TAL :K 18 Notes: CO Contract change order. (1) Construction Contract, Kennedy Pipeline Company, 1997. (2) Cost is included in other items specified in Constructiin Contract. 1.00 (2) 3.00 (2) so.00 1 .oo (2) $0.00 1 .oo 800.00 (1) $800.00 1 .oo (2) $0.00 1 .oo (2) $0.00 1.00 1.312.50 co-13 $1.312.50 $34,961.94 , UCER rDtCRS I G (3) ‘X 12” TEE (CO-13) EA EA Ea EA EA EA LS EXHIBIT C Sheet 5 of 6 EXHIBIT “C” TABLE 5 AVIARA - POINSETIIA LANE AND CASSIA ROAD 18 INCH PVC (384 HGL) TRANSMISSION RECLAIMED WATER PIPELINE REIMBURSABLE COST: OVERSIZING OF PIPELINE, 1 l/02/00 EA 1 1.00 1 00 90 DEGREE PJ X FL ELBOW 1,700.00 CO-08 $1,700.~ 2” BO EA 1.00 850.00 (1) 850.00 UNIFLANGE SERIES 1390 PIPE RESTR. EA 0.00 - $0.00 Less: Improvements Need 8” PVC CL 150 ed for Pmject ii” PVC LF 1499.00 24.00 CL 150 LF 115.00 24.00 (1) (1) S(35.976.00) S(2,760.00) R” X R” X 19” TFF FA 1 .oo $0.00 3.00 800.00 (1) S(2.400.00) 3.00 so.00 2.00 - so.00 2.00 650.00 (1) $(1,300.00) 1 .oo so.00 EA 1 .oo $0.00 EA 1 .oo 850.00 (1) S(650.00) EA 0.00 - $0.00 Notes: CO Contract change order. (1) Construction Contract, Kennedy Pipeline Company, 1997. (2) Cost is included in other items specified in Construction Contract. EXHIBIT C Sheet 6 of 6 AGREEMENT FOR REIMBURSEMENT OF COSTS FOR THE CONSTRUCTION OF SEWER PIPELINE IMPROVEMENTS WITHIN AVIARA PHASE Ill, UNIT NO. 1 Between CITY OF CARLSBAD And AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP Rev. l/02/01 -1 - AGREEMENT FOR REIMBURSEMENT OF COSTS FOR THE CONSTRUCTION OF SEWER PIPELINE IMPROVEMENTS WITHIN AVIARA PHASE Ill, UNIT NO. 1 (AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP) This Agreement for Reimbursement of Costs for the Construction of Sewer Pipeline Improvements within Aviara Phase Ill, Unit No. 1, dated as of March 19 , 2001 (“Agreement”), is made at San Diego County, California, by and between the CITY OF CARLSBAD, a municipal corporation (“CITY”), and AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP, a Delaware Limited Partnership (“Developer”), with reference to the following recitals; RECITALS A. Developer owned from 1988 to 1999 a certain real property commonly known as Aviara Phase Ill, Unit No. 1, located in the City of Carlsbad, California, more particularly described as Carlsbad Tract No. 92-03, filed in the Office of the County Recorder of San Diego County on June 23, 1997, as File No. 13434. B. The Planning Commission of the City adopted a series of resolutions on December 1, 1993 approving the Aviara Phase Ill, Unit No. 1 project. A Mitigated Negative Declaration dated September 14, 1993, a General Plan Amendment (GPA 93-06), a Master Plan Amendment (MP 1776), a Local Coastal Program Amendment (LCPA 92-Ol), a Tentative Tract Map (CT 92-03) and a Hillside Development Permit (HDP 92-04). All of such Planning Commission actions were adopted and approved by the City Council of the City of Carlsbad on February 8, 1994 (City Council Resolution No. 94-41). C. The Aviara Phase Ill, Unit No. 1 project approvals require Aviara to install water, sewer and reclaimed water pipelines in Poinsettia Lane, Ambrosia Lane, and Cassia Road to meet the needs of the homes and apartments to be built within Aviara Phase Ill, Unit No. 1 (the “Project Requirements’*). D. The City has requested Developer to install an 8-inch diameter sewer pipeline and other improvements in Poinsettia Lane, collectively referred to as the “Sewer Work” and described more particularly in Section 3 (a) below. E. The City and Aviara recognize that the Sewer Work exceeds the infrastructure otherwise required of Aviara in connection with its build-out of Aviara Phase Ill, Unit No. 1. Aviara agrees to install or cause the installation of the Sewer Work provided that the City agrees to reimburse Aviara as set forth in this Agreement. F. City and Developer acknowledge that Government Code Section 66485 allows the City to require a sub-divider to construct improvements benefiting property outside the subdivision; but Section 66486 requires the City to enter into a reimbursement agreement for such improvements. The parties intend that this Agreement satisfy the requirements of Government Code Section 66486. Rev. l/02/01 -2 - NOW, THEREFORE, the City and Developer agree as follows: I. Recitals. The Recitals are true and correct and incorporated herein by this reference. 2. Satisfaction of Oblkation. Developer’s agreement to perform the Sewer Work, as set forth herein, and the actual construction thereof, shall fully satisfy and constitute compliance with all requirements regarding Aviara Phase III, Unit No. 1 solely with respect to the Sewer Work. 3. General Develooer Obliqations. (a) (b) (cl W (e) (r) In consideration of the City’s reimbursement and other undertakings as set forth herein, Developer agrees to install the Sewer Work, which shall include the following improvements, as shown on City Drawing No. 341-5, Sheet 7, dated November 11, 1998, prepared by P&D Consultants (the “Plans”) and as shown in the attached Exhibit “A” and “B” which is incorporated herein by reference: (9 Construction of approximately 659 lineal feet of 8-inch diameter PVC and connection to existing in Ambrosia Lane; The Sewer Work shall include all necessary manholes and appurtenances, including those necessary to connect the Sewer Work to the City’s pipeline in Poinsettia Lane. Any portion of the Sewer Work completed before the effective date of this Agreement shall be included as a part of the Sewer Work for reimbursement, subject to the other provisions of this Agreement. Developer shall install the Sewer Work substantially in compliance with the City-approved plans and specifications, and other design documentation for the Sewer Work. Developer shall cause construction of all Non Reimbursable Work at Developer’s cost. By entering into this Agreement, Developer waives any and all potential constitutional objections (Nolan/Dolan) relating to the Sewer Work improvements. It shall be the responsibility of the Developer to observe and follow the requirements of City for retention of records and the submittal of information in connection with the Sewer Work Improvements, as specified in this Agreement. -3 - Rev. l/02/01 4. General Citv Obliaations. (a) The City shall reimburse Developer an amount (the “Reimbursement Amount”) equal to: (i) the actual Total Cost for reimbursement for construction; plus (ii) an allowance for overhead as described in Section 6 (9 below. The actual Total Reimbursable Cost shall include all costs associated with the installation of the Sewer Work noted in the attached Exhibit “C” which is incorporated herein by reference. The Total Reimbursable Cost is currently estimated to be calculated as follows: (b) City agrees to reimburse Developer for Reimbursable Sewer Work as described in Sections 6 and 7 below. 5. Reimbursable Sewer Work. (a) PO With respect to all hard costs of construction comprising the Sewer Work Improvements, Developer shall solicit bids from three reputable contractors. Reimbursable Sewer Work may be bid together with Non Reimbursable work for that portion of the Sewer Work Improvements which are being bid by such contractor. Upon agreement of a contract amount for the Sewer Work, the costs thereof shall be allocated among the categories consistent with the method and process used in the Exhibit “C.” The parties agree that the spreadsheet attached hereto as Exhibit “c” is a fair allocation of the costs under such contract as among the categories of Reimbursable Sewer Work. Costs shown in Exhibit “c” are subject to modification through change orders pursuant to Paragraph 6(h) of this Agreement. During the performance of any Reimbursable Sewer Work, Developer shall retain detailed payment records for all items of Reimbursable Sewer Work, for use by City in auditing subsequent reimbursement requests by Developer. Developer’s requests for reimbursement (each a “Reimbursement Request”) shall include copies of plans, specifications, engineer’s cost estimates, bids received, contracts, change orders, invoices, payment slips, canceled checks (front and back), lien releases and other documentation reasonably required by City to evidence the completion and payment for each item of Reimbursable Sewer Work. Reimbursement Requests may be submitted monthly in arrears, as identified in Section 6 (a) below, by Developer for each segment of work. -4 - Rev. l/02/01 6. Audit of Reimbursable Expenses. (4 Expenses for Reimbursable Sewer Work (including without limitation overhead and the allowance permitted under clause (9 below) are referred to herein collectively as “Reimbursable Expenses”. Developer shall be entitled to submit requests for Reimbursable Expenses monthly in arrears, and separately for each construction segment: (b) All Developer’s Reimbursement Requests will be processed and audited for City by a reputable consulting engineer selected by City (“Auditing Engineer”). The costs of the Auditing Engineer shall be paid directly by City. (c) W The Auditing Engineer shall review all Reimbursement Requests and the payment records submitted in connection therewith and shall within thirty (30) days thereafter issue to City and Developer a report either accepting Developer’s submittal or specifying with particularity any reimbursement items or amounts not approved. Any reimbursement items or amounts not approved by the Auditing Engineer may be further pursued by Developer using the dispute resolution provision of Section 8 below. With each Reimbursement Request, following 30-day review by Auditing Engineer, the Auditing Engineer shall forward one copy of each invoice submitted to Developer by Contractor, to the City’s Public Works Director (“Director”), together with an invoice for all other components of the Actual Cost not otherwise reflected on the Contractor’s invoice. The Director shall confirm and approve the Reimbursement Amount based upon the components of Actual Costs and Overhead Costs set forth in Section 5 of this Agreement. If the Director objects to any items comprising the Reimbursement Amount, the Director. shall notify Developer within thirty (30) days of receipt of all invoices forwarded by Developer. Failure to so notify Developer shall be deemed the Director’s approval of such invoices. W City’s reimbursement obligations hereunder shall be based upon the actual costs incurred by Developer in performing Reimbursable Work (including overhead and the allowances specified in (9 below). (9 Notwithstanding anything herein to the contrary, and without limitation and in addition to the Reimbursable Work, City specifically agrees that each of the following shall be deemed Reimbursable Expenses: (0 An allowance to cover the allocable portion of premiums paid by Developer for improvement and/or payment and performance bonds relating to the construction of Sewer Work are included in (iii) overhead expense. -5 - Rev. l/02/01 7. Pavment of Reimbursable Expenses. (9) (h) (ii) An allowance to cover the allocable portion of premiums paid by Developer for blanket liability insurance coverage is included in (iii) overhead expenses. (iii) An amount fixed at five percent (5%) of the eligible costs for Reimbursable Work, exclusive of this clause (9, to compensate for overhead expenses incurred by Developer including for salary and benefits, for staff of Developer’s home office, purchasing department expenses, project supervision, general corporate legal and accounting fees and other normal overhead expenses incurred by Developer, including the expenses described in subsections (f)(i) and (f)(ii) above. Prior to the submission to the Director of all invoices, Developer shall obtain necessary or appropriate lien releases from the Contractor, and shall obtain from the City and all appropriate governmental agencies, all approvals, certificates, and other documents necessary to indicate the completion of the Reimbursable Work, and the ability to put the Public Improvements into use. The date Developer receives all such final lien releases, approvals, and certificates shall be deemed the date of completion of the Sewer Work Improvements (the “Completion Date”). All change orders shall be subject to approval by both the City and Developer. At the time of approval, the parties shall also determine the portion of the change order which is allocated to Reimbursable Work. In making such decisions, the parties shall be guided by the principle that if a change order is necessary due to changed circumstances or oversight in original design, or if it is required in order to perform the applicable portion of the Sewer Work Improvements in an orderly, reasonable and prudent manner according to the standard engineering and construction practice applicable to the improvements, then the allocation of the portion to Reimbursable Work should be in proportion to the allocation as between Reimbursable Work in Exhibit “C” for that portion of the Sewer Work Improvements. (a) Payment of Reimbursable Expenses shall be made, within sixty (60) days after the Auditing Engineer’s determination on any such Reimbursement Request (or determination pursuant to Section 8 if applicable). (W The City shall not unreasonably withhold acceptance of the Sewer Work Improvements. (cl Developer and City agree that the City’s General Fund is not part of this Agreement, and shall not be obligated under the terms of this Agreement nor available for reimbursement purposes. Rev. l/02/01 -6 - 8. Disputes/Claims. If a dispute should arise regarding the performance or interpretation of this Agreement, the following procedure shall be used to resolve any question of fact or interpretation not informally resolved by the parties. Such questions, if they become identified as a part of a dispute among persons operating under the provisions of this Agreement shall be reduced to writing by the principal of Developer or the Director. A copy of such documented dispute shall be forwarded to both parties involved along with recommended methods of resolution which would be of benefit to both parties. The Director, or principal, upon receipt, shall reply to the letter, including a recommended method of resolution within ten (10) days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the dispute shall be forwarded to the City Council for their resolution through the office of the City Manager. The City Council may, but is not obligated to resolve the dispute. If the City Council considers the dispute, and directs a solution, the action of the City Council shall be binding upon the parties involved, although nothing in this procedure shall prohibit the parties from seeking remedies available to them at law. 9. Assignment of Contract. The Contractor shall not assign this contract or any part thereof or any monies due thereunder without the prior written consent of the City. 10. Notices. Unless otherwise specifically provided herein, all notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly delivered upon personal delivery, or by Federal Express (or similar reputable express delivery service), or by facsimile transmission with back-up copy mailed the same day, or as of the second business day after mailing by United States Certified Mail, return receipt requested, postage prepaid, address as specified herein. Notices required to be given to Developer shall be addressed as follows: Aviara Land Associates Limited Partnership Attention: Scott Medansky 2011 Palomar Airport Road, Suite 112 Carlsbad, CA 92009 Telephone: (760) 931-l 190 FAX: (760) 931-7950 Notices to City shall be delivered to the following: CITY OF CARLSBAD Attention: Public Works Director 1635 Faraday Avenue Carlsbad, CA 92008 Telephone: (760) 602-2730 FAX: (760) 602-8562 Each party shall notify the other immediately of any changes of address that would require any notice delivered hereunder to be directed to another address. 11. Transfer by Developer. The obligations and benefits of this Agreement shall not be transferred upon sale of Aviara Phase Ill, Unit No. 1. 12. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute one and the same instrument. Rev. l/02/01 -7 - 13. Governing Law and Venue. This Agreement shall be interpreted and enforced under the laws of the State of California, and venue shall reside in San Diego County, California. 14. Complete Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter contained herein, and supersedes all negotiations, discussions, and prior drafts with respect to this subject matter. 15. Amendment. This Agreement may be amended by a written instrument executed by City and Developer (including for this purpose any successors of Developer, to the extent of their ownership of real property within Aviara Phase III, Unit No. 1); except that no amendment regarding the provisions for reimbursement to Developer shall be valid unless executed by Developer. 16. This Agreement shall be effective as of the date first above Term. written, and shall terminate on the earlier of (i) the date the City fully reimburses Developer the Reimbursement Amount, or (ii) January 1,2015. 17. No Third Partv Beneficiaries. This Agreement shall not be deemed to confer any rights upon any individual or entity which is not a party hereto, and the parties hereto expressly disclaim any such third-party benefit. Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill III Rev.1/02/01 -8 - 19. Severability. The invalidity or unenforceability of any provision of this Agreement, as determined by a court of competent jurisdiction, shall in no way affect the validity or enforceability of any other provision hereof. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP, a Delaware Limited Partnership By: Aviara Land Company, a Delaware By: ATTEST: (Proper notarial acknowledgment of execution by Developer must be attached. Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant treasurer must sign for corporations. Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.) APPROV D AS TO FORM: E Rev. l/02/01 -9 - State of California 1 I / County of % J,cm ; 9 Notary of iatisfactory evidence sk\/ to de the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. . _’ -.r . . A! *.c ’ ” GINA OUti’i Ccfnmission # 123537 1 Notary P&lie - Cniifc4-M San Dif?go CD: :riiy County of i On before me, Public, personally appeared Claude Lewis , Notary personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. -10 - Rev. l/02/01 POINSETTIA LANE SCALE: 1 -= 400’ NOTE: 8” SEWER PIPELINE IS PER DWG. NO. 341-5, SHT. NO. 7. AWW CT 92-3-1 PHASE Ill, UNIT I 8” SEWER PIPELtNE AVlARA OAKS SCHOoL tll EXHIBIT A EXHIBIT “B” AVIARA - POINSETTIA LANE SANITARY SEWER PIPELINE QUANTITY TAKE-OFF CONSTRUCTION OF PIPELINE, 8/24/00 CITY OF CARLSBAD Notes: (1) The quantities shown above are from Drawing No. 341-5, Sheet 7 (as-built dated 11/g/98). (2) The sewer limits are from the intersection of Ambrosia Lane and Poinsettia Lane to the westerly subdivision boundary. EXHlBtT B Sheet 1 of 1 EXHIBIT “C” AVIARA - POlNSElTlA LANE SANITARY SEWER DISTRIBUTION PIPELINE REIMBURSABLE COST: CONSTRUCTION OF PIPELINE, 1 l/02/00 CITY OF CARLSBAD Note: CO Contract change order EXHIBIT C Sheet 1 of 1 1 2 3 4 5 6 7 6 9 10 11 12 13 14 15 16 17 16 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 1118 A RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD MUNICIPAL WATER DISTRICT (CMWD) TO APPROVE AND AUTHORIZE EXECUTION OF A REIMBURSEMENT AGREEMENT WITH AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP, FOR WATER AND RECLAIMED WATER PIPELINE IMPROVEMENTS WITHIN AVIARA PHASE Ill. UNIT NO. 1 PROJECT NOS. 35851 AND 36581. WHEREAS, Aviara Land Associates Limited Partnership, is the developer of the Aviara Phase Ill, Unit No. 1 project; and WHEREAS, at the request of the CMWD, Aviara Land Associates Limited Partnership designed and constructed a 30-inch diameter potable water transmission main, a 12-inch diameter potable water transmission main and an 18 inch diameter recycled water transmission main in Poinsettia Lane, Cassia Road and Ambrosia Lane; and WHEREAS, ,Aviara Land Associates Limited Partnership, has requested the Board approval of a Reimbursement Agreement pursuant to District Ordinance 26; and WHEREAS, the Planning Director determined that the requested action is in compliance with previous CEQA review; and WHEREAS, the total cost for the 30-inch diameter potable water transmission main is $169,043; and WHEREAS, the total cost for the 12-inch diameter potable water transmission main is $30,501, a portion of which was for oversizing above an 8-inch diameter pipe; and WHEREAS, the total cost for the l&inch diameter recycled water transmission main is $80,461, a portion of which was for oversizing above an 8-inch diameter pipe, and; WHEREAS, there are sufficient appropriations available in the Water Connection Fee Fund to pay for both the 30-inch diameter and the 12-inch diameter potable water transmission mains; and WHEREAS, there are sufficient appropriations available in the Water Replacement Fund to pay for the reclaimed water pipeline. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Carlsbad Municipal Water District (CMWD) of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 1 2 3 4 5 6 7 6 9 10 11 12 13 14 16 18 23 24 25 26 27 28 2. That the agreement between the CMWD and Aviara Land Associates Limited Partnership for the Reimbursement of Costs for Water and Recycled Water Pipelines Improvements within Aviara Phase Ill, Unit No. I, is hereby approved and the President is authorized to execute said agreement on behalf of the Carlsbad Municipal Water District. II PASSED, APPROVED AND ADOPTED at a special, meeting of the Carlsbad Municipal Water District held on the 13th day of March , 2001 by the following vote, to wit: AYES: Board Members Lewis, Finnila and Hall. ATTEST: (SEAL) 1 RESOLUTION NO. 200 l-80 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD TO APPROVE AND AUTHORIZE EXECUTION OF A REIMBURSEMENT AGREEMENT WITH AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP, FOR SEWER PIPELINE IMPROVEMENTS WITHIN AVIARA PHASE Ill. UNIT NO. 1. WHEREAS, Aviara Land Associates Limited Partnership, is the developer of the Aviara Phase III, Unit No. 1 project; and 7 WHEREAS, at the request of the City of Carlsbad, an 8-inch diameter sewer pipeline was 8 designed by P&D Consultants in Poinsettia Lane and constructed by Aviara Land Associates 9 Limited Partnership; and 10 11 WHEREAS, Aviara Land Associates has requested the City Council to approve a Reimbursement Agreement for the costs of constructing sewer pipeline improvements, and I2 13 WHEREAS, the Planning Director determined that the requested action is in compliance with previous CEQA review; and 14 15 WHEREAS, the total cost for the 8-inch diameter sewer pipeline improvements is $18,182 and an appropriation is requested to pay for the pipeline improvements; and 16 WHEREAS, there are sufficient funds available in the Sewer Replacement Fund to 17 I8 19 20 21 22 23 24 25 26 27 28 appropriate the funds needed for the pipeline improvements. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: I. That the above recitations are true and correct. 2. That the agreement between the City and Aviara Land Associates Limited Partnership for the reimbursement of costs for sewer pipeline improvements within Aviara Phase II Unit No. 1 is hereby approved and the Mayor is authorized to execute said agreement on behalf of the City. 1 2 3 4 5 6 7 6 9 10 11 12 15 16 17 16 19 20 21 22 23 24 25 26 27 26 3. That an appropriation in the amount of $18,182 is approved from the sewer replacement fund. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 13th day of March ,200l by the following vote, to wit: AYES: Council Members Lewis, Finnila, and Hall. CLAUDE A. LEW ATTEST: (SEAL) -8. . ‘., ;A