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HomeMy WebLinkAbout2002-09-24; City Council; 16906; Reimbursement Agreement with Redeemer by the SeaCITY OF CARLSBAD -AGENDA BILL I .B# ITG. 9/24/02 REDEEMER BY THE SEA LUTHERAN CHURCH OF CARLSBAD CITY MGR. PROJECT NO. 3673 IEPT. ENG CITY Am 16,906 TITLE: APPROVE AND AUTHORIZE A REIMBURSEMENT AGREEMENT WITH FOR GRADING POINSElTIA LANE REACH C, RECOMMENDED ACTION: Adopt Resolution No. 2002-289 to approve and authorize a reimbursement agreement with Redeemer by the Sea Lutheran Church of Carlsbad for grading Poinsettia Lane Reach C, Project No. 3673. ITEM EXPLANATION: Reach C of Poinsettia Lane extends from Black Rail Road to just west of Ambrosia Lane, On August 6, 2002, the City Council approved the plans for Poinsettia Lane Reach C and authorized advertising for bids. The plans include grading, roadway, median, storm drain, sewer, water and recycled water system improvements. Redeemer by the Sea Lutheran Church of Carlsbad (the "Developer") owns property along the southern side of future Poinsettia Lane Reach C, see Exhibit 1. They have obtained the necessary discretionary approvals for their project (CT 00-22) and they are preparing construction plans. October 1, 2002. If they achieve this goal, the Developer could begin construction in advance of the It is their goal to complete their plans and obtain a grading permit so they can begin grading by City awarding the Poinsettia Lane Reach C project. The subject reimbursement agreement would expedite the construction of Reach C by enabling the Developer to construct the full-width grading and drainage improvements for Poinsettia Lane Reach C. The Developer will benefit from the agreement by grading their site relative to the ultimate Poinsettia Lane configuration rather than having to accommodate an interim condition. In anticipation of this type of agreement, the City's construction documents have been formatted so the full-width grading and drainage system items of work can be deducted from the Poinsettia Lane Reach C project. Upon approval of the Developer's plans and issuance of a grading permit, the subject reimbursement agreement would be executed. In addition to defining the City's commitment to pay for the improvements, the agreement defines the responsibilities of the Developer to obtain competitive bids, to complete the construction in a timely manner, and to submit requests for reimbursement with supporting documentation. ENVIRONMENTAL: The potential impacts of the construction of this portion of Poinsettia Lane have been reviewed consistent with the California Environmental Quality Act as part of the certified Environmental Impact the De Jong residential project (CT 98-05) was certified on November 30, 1998, and the Negative Report for the Zone 20 Specific Plan (EIR 90-03). In addition, the Mitigated Negative Declaration for Declaration for the Redeemer by the Sea project (CT 00-22) was certified on February 12, 2002. The Planning Director determined that the environmental effects of this project have already been considered in conjunction with the previously mentioned environmental documents and, therefore, no additional environmental review is required. A public Notice of Prior Environmental Compliance was published on January 6, 1999, and a Notice of Determination was filed immediately thereafter. FISCAL IMPACT: The estimated construction costs for the full-width grading and drainage system improvements included in the reimbursement agreement is $1.125 million. These improvements will be funded by currently available in B&TD #2 for the Poinsettia Lane Reach C project. Bridge and Thoroughfare District No. 2 (B&TD #2) fee revenues. Approximately $1.3 million is I Page 2 of Agenda Bill No. 16,906 from the Gas Tax Fund for $2.5 million. These loans paid for the Schools Districts share of the Council previously approved a loan to B&TD #2 from the General Fund for $500,000 and a loan road improvements ($1.5 million) as well as provided cash flow so that current obligations for the road improvements could be paid. Prior to award of the City Contract for the roadway surface the General Capital Construction Fund and/or other sources. Due to Carlsbad's expenditure limit, improvements it is estimated that the City will need to loan B&TD #2 an additional $520,000 from amounts spent from general funds will not exceed $1 million. The loan and appropriation of B&TD #2 funds will be requested at the time of the bid award for the City's Poinsettia Lane Reach C contract. The loan will be repaid as the adjacent land develops and B&TD #2 fees are collected. In addition to the roadway items of work, the City Contract will include the construction of water and recycled water lines. Water connections fees and State Water Resources Control Board funding respectively will fund the water and recycled water lines. The following table summarizes the estimated construction costs and funding sources for the construction of the Poinsettia Lane Reach C improvements ESTIMATED CONSTRUCTION COST OVERVIEW Roadway Surface Improvements via City Contract $60,000 Construction Contingency $400,000 $60.000 Inspection, Testing, and Construction Management Subtotal: B&TD #2 $520,000 Developer Frontage Improvements $425,000 Subtotal: Dev. Deposits $425,000 Recycled Water Mains (Project No. 36752) Recycled Water Mains Construction $50,900 Construction Contingency (1 0%) $509,000 EXHIBITS: 1. Project site map. 2. Resolution No. 2002-289 with Redeemer by the Sea Lutheran Church of Carlsbad for grading Poinsettia Lane to approve and authorize a reimbursement agreement Reach C, Project No. 3673. 3. Reimbursement agreement. k)ccllG/7 LOCATION MAP NOT Th SCALE PROJECT NAME PROJECT SITE MAP I EXilB'T4 1 2 1 6 € I E E 1c 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 II I RESOLUTION NO. 2002-289 ? A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF I CARLSBAD, CALIFORNIA, TO APPROVE AND AUTHORIZE A LUTHERAN CHURCH OF CARLSBAD FOR THE GRADING OF I REIMBURSEMENT AGREEMENT WITH REDEEMER BY THE SEA POINSETTIA LANE REACH C. PROJECT NO. 3673. , WHEREAS, the City of Carlsbad proposes to construct Poinsettia Lane Reach C, i Black Rail Road to just west of Ambrosia Lane, pursuant to City Project No. 3673; and WHEREAS, Redeemer by the Sea Lutheran Church of Carlsbad (the "Developer") is the Developer of the City approved project known as Carlsbad Tract 00-22, Redeemer by the Sea (the "Project"); and I I I WHEREAS, the Developer desires to commence grading operations and construction for the Project and construction of grading for Poinsettia Lane Reach C in advance of the City constructing the roadway and utility improvements for Poinsettia Lane Reach C; and WHEREAS, the Developer has agreed to construct portions of the Poinsettia Lane Reach C project including full-width grading and drainage facilities for Poinsettia Lane Reach C as shown on Drawing No. 379-6 (the "Improvements") provided that the City reimburse the Developer for such improvements; and WHEREAS, the City Engineer has determined that having the Poinsettia Lane Reach C grading and drainage improvements constructed by Developer will expedite the construction of Poinsettia Lane Reach C; and WHEREAS, the City Council finds that upon obtaining a grading permit for the Project, the Developer may enter into the reimbursement agreement for grading and drainage improvements for Poinsettia Lane Reach C, (the "Agreement"), a copy of which is attached hereto; and WHEREAS, adequate funds to reimburse the Developer for constructing the full-width grading and drainage improvements for Poinsettia Lane Reach C exist as a result of the fees collected pursuant to the Bridge and Thoroughfare District No. 2. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the reimbursement agreement is hereby approved. 3. That upon issuance of a aradina permit to the Developer for the Proiect, the Mayor is hereby authorized to execute the agreement with Redeemer by the Sea Lutheran Church of Carlsbad, a California non-profit religious corporation. 4. That the City Clerk is hereby authorized to cause the executed agreement to be recorded in the Office of the County Recorder of San Diego County, State of California. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 24th day of SEPTEMBER ,2002 by the following vote, to wit: AYES: Council Members Lewis, Finnila, Hall :NOES: None Kulchin, Nygaard (SEAL) THE REIMBURSEMENT AGREEMENT HAS NOT BEEN FULLY SIGNED. PLEASE REFER TO 289 RESOLUTION NO. 2002- ITEM NO. 3. RECORDING REQUESTED BY WHEN RECORDED MAILTO City Clerk CITY OF CARLSBAD 1200 Carlsbad Village Dr. Carlsbad, CA 92008 SPACE.ABOVETHIS LINE FOR RECORDER'S USE AGREEMENT FOR REIMBURSEMENT OF CONSTRUCTION COSTS FOR POINSETTIA LANE, REACH C Between CITY OF CARLSBAD, a Municipal Corporation AND REDEEMER BY THE SEA LUTHERAN CHURCH OF CARLSBAD 1 AGREEMENT FOR REIMBURSEMENT OF CONSTRUCTION COSTS FOR POINSETTIA LANE REACH C This A r ment for Reimbursement of Construction Costs for Poinsettia Lane Reach C, dated as of 5,. , 2002 ("Agreement"), is made at the City of Carlsbad, San Diego County, Califo ia, by and between the CITY OF CARLSBAD, a municipal corporation ("City") and REDEEMER BY THE SEA LUTHERAN CHURCH OF CARLSBAD, a California non-profit religious corporation ("Developer"), collectively ("the Parties"), with reference to the following recitals: A. B. C. D. E. F. RECITALS Developer is in the process of developing that certain real property located in the City of Carlsbad, California, generally shown on Exhibit "A", attached hereto and made a part hereof, as the Redeemer by the Sea Lutheran Church of Carlshad. Developer filed separate applications for tentative subdivision map and related approvals with respect to Redeemer by the Sea Lutheran Church of Carlsbad (''Project"). The Project has been granted City approvals including without limitation: Tentative Tract Map (CT 00-22), Conditional Use Permit (CUP 00-44), Coastal Development Permit (CDP 00-64), Hillside Development Permit (01-12), all incorporated into and approved by City per Planning Commission Resolutions 5122, 5123, 5124 and 5132 on January 2,2002 and Zone Change (ZC 00-10) and Local Coastal Program Amendment (LCPA 00-13) all incorporated and approved by Council Resolution 2002-050 on February 12, 2002. (collectively the "Approvals"). The Project is located within the boundaries of Bridge and Thoroughfare District No. 2 and Developer is required to pay fees in conjunction with Bridge and Thoroughfare District No. 2 to finance construction of Poinsettia Lane as more particularly described therein and as required by the Approvals. The Parties agree that the construction of Poinsettia Lane is of importance to both parties. A portion of the Poinsettia Lane Reach C alignment generally forms the northerly boundary of the Project and Developer is ready to grade the Project, which provides an opportunity to closely coordinate grading of both the Project and Poinsettia Lane Reach C. The Developer would experience delays to the Project if the grading and installation of drainage facilities for Poinsettia Lane Reach C is not completed concurrent with the grading for the Project. The Parties acknowledge that Government Code Section 66485 allows the City to require a sub-divider to construct improvements benefiting property outside the subdivision; and in such circumstances, 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. 2 G. The Poinsettia Lane Reach C is a project for which the City has collected, and will continue to collect, funds from the developers of projects located within the boundaries of Bridge and Thoroughfare District No. 2, and financing from other governmental sources. For purposes of this Agreement the City's financing program and resulting funds, are referred to herein as "Financing Program Funds." NOW, THEREFORE, the City and Developer agree as follows: 1. Recitals. The Recitals are true and correct and incorporated herein by this reference. 2. Reimbursable Work. The portion of the Poinsettia Lane Reach C improvement project which is the subject of this Agreement is hereafter referred to as the "Reimbursable Work." The Reimbursable Work is fully described in "Scope of Reimbursable Work and Estimated Cost Summary" attached hereto as Exhibit "B" and made a part hereof, and generally consists of the grading for full width road improvements, associated drainage improvements and utility access improvements. Reimbursable work does not include the items identified in Exhibit "B" as 'non-reimbursable', or any other expenses that the City would not incur if the City administered the construction of Poinsettia Lane. 3. General Citv Obligations, (a) City shall expedite processing of the necessary plans, specifications, and other design and bid documentation for the Reimbursable Work. These plans and specifications are identified as City of Carlsbad Drawing No. 379-6. (b) City has obtained, all easements and rights-of-way required to complete construction of the Reimbursable Work not located within land which comprises the Project. (c) City shall pay the expenses of inspections and environmental monitoring for the Reimbursable Work directly from the Financing Program Funds and shall provide those services directly. (d) City and Developer have obtained, or will obtain, all required environmental and, other permits for the Reimbursable Work. City agrees to process any environmental and other permits related to the Reimbursable Work which may fall under City jurisdiction in a timely manner, and shall not unreasonably withhold or delay approval of any other permits needed for the Reimbursable Work. (e) City agrees to allow Developer to separately post bonds and file a Grading and Erosion Control Agreement for Poinsettia Lane, Drawing No. 379-6, and construct the full width gradmg, drainage and utility access improvements and the Project as one construction phase. (0 City agrees to reimburse Developer for the costs of Reimbursable Work subject to Sections 6 and 7 below. 3 4. General Developer Obligations. Developer shall utilize a bid list with the items of work included on “Scope of Reimbursable Work and Estimated Cost Summary” (Exhibit “B”) in competitively bidding construction of the Reimbursable Work as a separate contract to a licensed contractor. As the Reimbursable Work will be paid from the Financing Program Funds, the Reimbursable Work shall be contracted at “prevailing wages” in accordance with SB 975 (amending Government Code Section 63036, and Labor Code Section 1720). By entering into this Agreement, Developer waives any and all potential constitutional objections (NolanlDolan) relating to the Poinsettia Lane 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 Reimbursable Work, as specified in this Agreement. Developer agrees to pay for all expenses related to the grading, installation of drainage facilities for Poinsettia Lane, described herein, that the City would not otherwise incur if the City administered the project. Developer agrees to construct the road bed for Poinsettia Lane Reach C to subgrade plus or minus 0.1 feet. Subgrade is defined herein as the road centerline grade minus 17 inches as shown on City of Carlsbad Drawing NO. 379-6. Developer agrees to construct the full width grading and drainage facilities associated with Poinsettia Lane Reach C as shown on City of Carlsbad Drawing No. 379-6, by January 1, 2003 if grading is allowed between October 1, 2002 and January 1, 2003 or by June 1, 2003 if grading is prohibited from October 1,2002 to April, 2003. 5. Bidding: Reimbursement Reouests. (a) With respect to all hard costs of construction comprising the Reimbursable Work, Developer shall solicit bids from three reputable contractors. Reimbursable Work will be bid and contracted separately from Developer’s own Project work. Upon selection of the contractor by the Developer for each component of Reimbursable Work, andagreement upon a contract amount for each component, the costs of the lowest responsible bidder thereof shall be allocated as necessary among the categories consistent with the method and process used in Exhibit “B”. 4 4 (b) During the performance of any Reimbursable Work, Developer shall retain detailed payment records for all items of Reimbursable 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, contracts, change orders, invoices, payment slips, cancelled checks (front and back), lien releases and other documentation reasonably required by City to evidence the completion and payment for each item of Reimbursable Work. Reimbursement Requests may be submitted monthly in arrears, as provided in Section 6(a) below, by Developer for each component of work as the Reimbursable Work progresses. 6. Audit of Reimbursable Expenses. Expenses for Reimbursable Work (including without limitation Developer's overhead and allowance permitted under Section 6(e) 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 component of Reimbursable Work. All Developer's Reimbursement Requests will be processed and audited by City forces or for the City by a reputable consulting engineer selected by City. If utilized, the costs of a consulting engineer shall be paid directly by City from Financing Program Funds. The City shall, within thirty (30) days from receipt, review all Reimbursement Requests and the payment records submitted in connection therewith and issue to the Developer a statement either (i) approving Developer's Reimbursement Request, or (ii) specifying with particularity the amount and reasons for any reimbursement items or amounts not approved. Any reimbursement items or amounts not approved may be further pursued by Developer using the dispute resolution provision of Section 8 below. City's reimbursement obligations hereunder shall be based upon the actual costs incurred by Developer in contracting for the Reimbursable Work (in addition to Developer's overhead and the allowances specified in Section 6(e) below). Notwithstanding anything herein to the contrary, in addition to the actual costs for Reimbursable Work incurred by Developer, City specifically agrees that the total of the following items shall be deemed Reimbursable at an amount fixed at seven and three tenths (7.3) percent of the actual costs for Reimbursable Work, (exclusive of this clause (e)) to compensate for the allocable portion of the following expenses: 5 (1) (ii) (iii) Premiums paid by Developer for improvement and/or payment and performance bonds (if any) relating to the Reimbursable Work, 1.5%. Premiums paid by Developer for its blanket liability insurance as required for the Reimbursable Work, 1.8%. Other construction management, administrative and overhead expenses including salary and benefits, project supervision, staff of Developer’s home office, and general corporate legal and accounting fees, 4.0%. (f) Prior to the submission to the Director of all Reimbursement Requests, 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. Reimbursable work will be deemed complete upon the City’s receipt of all final lien releases, approvals, certificates, and City’s approval of the construction punch list. (g) All change orders shall be subject to approval by the Developer. At the time of approval, the City shall determine the portion of the change order allocated to separate components of Reimbursable Work. In making such decisions, the City shall be guided by the following principles as they apply to change orders: (i) Changed or unknown circumstances. (ii) Oversight in the original design. (iii) Performing work in an orderly, reasonable and prudent manner according to standard engineering and construction practices. 7. Pavment of Reimbursable ExDenses. (a) Payment of Reimbursable Expenses shall be made, within thirty (30) days after the City’s determination on any Reimbursement Request (or determination pursuant to Section 8 if applicable). (b) Except as noted in Section 7(a) above, payment of any Reimbursable Expenses under this Agreement shall not be reduced for fees or charges that may be payable as a condition of obtaining permits for the Project. 6 Reimbursable Expenses for items of Reimbursable Work paid for by Developer in advance of construction of the Reimbursable Work (such as construction mobilization) may be submitted for reimbursement with the first Reimbursement Request submitted for such construction component, provided Developer has advised the City in writing in advance of incumng the expense and provided the City with a reasonable estimate of such expense. If this Agreement is not approved by the Parties, any expenses incurred by Developer shall not be deemed reimbursable. The City shall not unreasonably withhold, condition or delay acceptance of the Reimbursable Work. The Parties agree that the sole source of reimbursement shall be the Financing Program Funds and that the City's General Fund is not part of this Agreement, and shall not be obligated under the terms of this Agreement. City represents and warrants it has sufficient Financing Program Funds presently available to make timely reimbursements as provided herein. 8. Disputes/Claims. If a dispute should arise regarding the performance or interpretation of this Agreement, the following procedure shall be used to initially 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 Public Works Director. A copy of such documented dispute shall be forwarded to the other party involved along with proposed methods of resolution that would be of benefit to both parties. The Public Works Director, or principal, upon receipt, shall reply to the letter, including a proposed method of resolution within fifteen (15) days. If the proposed resolution 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 as soon as practicable. 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 for purposes of processing any Reimbursement Requests, provided however, nothing in this Agreement shall prohibit the parties from seeking remedies available to them at law or equity. 9. Assimment of Contract. The Developer shall not assign this contract or any part thereof or any monies due hereunder without the prior written consent of the City, which consent shall not be unreasonably withheld, delayed or conditioned. 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: REDEEMER BY THE SEA LUTHERAN CHURCH OF CARLSBAD Attention: Ron Mazone, Congregational President 6356 Corte Del Abeto #lo0 Carlsbad, CA 92009 Telephone: (760) 431-8990 FAX: (760) 431-8990 Notices to City shall be delivered to the following: CfiY OF CARLSBAD Engineering Department Attention: Public Works Director Carlsbad, CA 92008 1635 Faraday Avenue 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. Countemarts. 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. 12. Governing Law and Venue. This Agreement shall be interpreted and enforced under the laws of the State of California and venue shall be in San Diego County, California. 13. Comulete 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. 14. Amendment. This Agreement may be amended only by a written instrument executed by City and Developer. 15. Term. This Agreement shall be effective as of the date first above written, and shall terminate on the earlier of (i) the date the City fully pays Developer its Reimbursement Expenses, or (ii) January 1, 2005, subject to Developer's satisfaction of 6(f) above. 8 16. No Third Partv Beneficiaries. This Agreement shall not be deemed to confer any rights upon any individual or entity that is not a party hereto, and the parties hereto expressly disclaim any such third-party benefit. 17. Indemnification. Developer shall assume the defense of, pay all expenses of defense, and indemnify and hold harmless City, its officers, agents, andemployees, against any challenges to the award of contract(s) for the Reimbursable Work to contractor(s). Defense costs include the cost of separate counsel for the City, if the City reasonably requests separate counsel, as well as the payment of any fines or judgments. 18. 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. REDEEMER BY THE SEA LUTHERAN CITY OF CARLSBAD, a municipal CHURCH OF CARLSBAD, a California Coporation of the State of California non-profit religious corporation By: A /?k/ By: Ron Mazkke City Manager or Mayor Congregational President ATTEST: Lorraine M. Wood City Clerk APPROVED AS TO FORM: RONALD R. BALL, City Attorney By: Deputy City Attorney 9 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California 1 0 personally known to me dproved to me on the basis of satisfactory evidence to be the person@) whose name(@ islaw subscribed to the within instrument and the same in hislherCiker authorized acknowledged to me that heli.h&t+ey executed capacity(- and that by his/hef&eir signature(+ on the instrument the person(+, or the entity upon behalf of which the person(* acted, executed the instrument. OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on lhe document and muid prevent fraudulent removal and reanschment ol this form to another dmumenf. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer@) Other Than Named Above: Capacity(ies) Claimed by Signer Signer’s Name: 0 Individual 0 Corporate Officer - Titie(s): 0 Paltner - 0 Limited 0 General 0 Attorney-in-Fact 0 Trustee 0 Guardian or Conservator 0 Other: Signer Is Representing: LOCATION MAP NOT Th SCALE PROJECT NAME PROJECT SITE MAP EXHIBIT A W 81 SCOTT EVANS CARLY)*D fN(2NCfRfNC DEPK 8/5/02 C: \~PfrAL~n\PcWNsE171/L”ER BY DIE SA.DW I