Item 5CCity of Southlake, Texas
MEMORANDUM
July 13, 2004
To: Billy Campbell, City Manager
From: Pedram Farahnak, P.E., Director of Public Works
Subject: Authorize the Mayor to execute a commercial developer's agreement for
Chapel Hill Office Park Addition, a 4.24 acre site located at 205 E. Southlake
Blvd.
Action Requested: Authorize the Mayor to execute a commercial developer's agreement for
Chapel Hill Office Park Addition, a 4.24 acre site located at 205 E.
Southlake Blvd.
Background
Information: The site plan for Chapel Hill Office Park was approved by Council on
February 17, 2004 and the final plat was approved on February 19, 2004.
This developer's agreement covers the construction of 970 linear feet of
sanitary sewer lines on -site, 250 linear feet of sanitary sewer lines off -site,
1,065 linear feet of water lines on -site and 1,387 linear feet of water lines
off -site. The project also includes the construction of a detention pond.
The existing 6-inch water line along the frontage of this property and
running along the FM 1709 right of way is undersized and in poor
condition. The developer will construct an off -site 12-inch water line
from approximately 360 linear feet east of the property to the west
property line of the development with the City participating in the cost of
the oversize. Since the construction of this 12-inch water line is included
in the 04/05 Capital Improvements Program, the city staff has requested
the developer to construct the 12-inch water line from the west property
line of the development to White Chapel Boulevard, approximately 600
linear feet, also, with the City to reimburse the developer for all the cost of
that section of the 12-inch water line.
The developer will pay a park fee of $1,200 per acre for 4.24 acres, or
$5,088.00.
Financial
Consideration: The City's cost participation for oversizing the water line to 12-inch
diameter from 360 feet east of the property to the west property line is
estimated at $5,454.00. The reimbursement for extension of the 12-inch
water line from the development's west property line to White Chapel
Boulevard is approximately estimated at $47,627.00, a total of $53,081.00.
Final amount of City's participation is subject to minor changes due to the
actual field conditions.
Citizen Input/
Board Review: None
Legal Review: This is the City's standard commercial developer's agreement originally
drafted by the City Attorney.
Alternatives: The Council may approve it, deny it or modify it.
Supporting
Documents: Agreement
Location Map
Utility Plan
Staff
Recommendation: Authorize the Mayor to execute a commercial developer's agreement for
Chapel Hill Office Park Addition, a 4.24 acre site located at 205 E.
Southlake Blvd.
Staff
Contact: Pedram Farahnak, P.E., Director of Public Works
Charlie Thomas, P.E., City Engineer
CC: Sharen Elam, CPA, Finance Director
Vicinty Map
Chapel Hill Office Park Addition
CHAPEL HILL OFFICE PARK ADDITION
COMMERCIAL DEVELOPER AGREEMENT
An agreement between the City of Southlake, Texas, hereinafter referred to as the
"City", and the undersigned Developer, hereinafter referred to as the "Developer", of
CHAPEL HILL OFFICE PARK ADDITION, hereinafter referred to as "Addition" to the
City of Southlake, Tarrant County, Texas, for the installation of certain community
facilities located therein, and to provide city services thereto. It is understood by and
between the parties that this Agreement is applicable to the Addition (a commercial
development) and to the off -site improvements necessary to support the Addition.
GENERAL REQUIREMENTS
A. It is agreed and understood by the parties hereto that the Developer shall
employ a civil engineer licensed to practice in the State of Texas for the
design and preparation of the plans and specifications for the construction
of all facilities covered by this Agreement.
B. The Developer will present to the City either a cash escrow, Letter of
Credit, performance bond and payment bond acceptable to the City
guaranteeing and agreeing to pay an amount equal to 100% of the value
of the construction cost of all the public facilities to be constructed by the
Developer, and providing for payment to the City of such amounts, up to
the total remaining amounts required for the completion of the Addition if
the Developer fails to complete the work within two (2) years of the signing
of this Agreement between the City and Developer. All bonds shall be
issued by a Best -rated bonding company. All letters of credit must meet
the Requirements for Irrevocable Letter of Credit attached hereto and
incorporated herein.
The value of the performance bond, letter of credit or cash escrow will
reduce at a rate consistent with the amount of work that has been
completed by the Developer and accepted by the City. Performance and
payment bond, letter of credit or cash escrow from the prime contractor(s)
or other entity reasonably acceptable to the City, hereinafter referred to as
Contractor, will be acceptable in lieu of Developer's obligations specified
above.
C. The Developer agrees to furnish to the City maintenance bonds, letter of
credit and cash escrow amounting to 100% of the cost of construction of
underground public utilities and 100% for the paving. These maintenance
bonds, letter of credit or cash escrow will be for a period of two (2) years
and will be issued prior to the final City acceptance of the Addition. The
maintenance bonds, letter of credit or cash escrow will be supplied to the
City by the contractors performing the work, and the City will be named as
the beneficiary if the contractors fail to perform any required maintenance.
D. It is further agreed and understood by the parties hereto that upon
acceptance by the City, title to all facilities and improvements mentioned
herein above which are intended to be public facilities shall be vested in
the City, and Developer hereby relinquishes any right, title, or interest in
and to said facilities or any part thereof. It is further understood and
agreed that until the City accepts such improvements, the City shall have
no liability or responsibility in connection with any such facilities.
Acceptance of the facilities for this provision and for the entire Agreement
shall occur at such time that the City, through its City Manager or his duly
appointed representative, provides Developer with a written
acknowledgement that all facilities are complete, have been inspected and
approved, and are being accepted by the City.
E. On all public facilities included in this Agreement for which the Developer
awards his own construction contract, Developer agrees to the following
procedure:
1. Developer agrees to pay the following:
a. Inspection fees equal to three percent (3%) of the cost of the
water , street, drainage and sanitary sewer facilities, on all
facilities included in this agreement for which Developer
awards his or her own construction contract, to be paid prior
to construction of each phase and based on actual bid
construction cost;
b. Administrative Processing Fee equal to two percent (2%) of
the cost of water, street, drainage and sanitary sewer
facilities, on all facilities included in this Agreement for which
Developer awards his or her own construction contract, to be
paid prior to construction of each phase and based on actual
bid construction cost;
C. Trench testing (95% Standard);
d. The additional charge for inspections during Saturday,
Sunday, holidays, and after normal working hours;
e. Any charges for retesting as a result of failed tests;
f. All gradation tests required to insure proper cement and/or
lime stabilization.
2. The City agrees to bear the expense of:
a. All nuclear density tests on the roadway subgrade (95%
Standard);
b. Technicians time for preparing concrete cylinders; and
C. Concrete cylinder tests and concrete coring samples.
The City can delay connection of buildings to service lines or water
mains constructed under this Agreement until said water mains and
service lines have been completed to the satisfaction of and
acceptance by the City.
F. The Developer will be responsible for mowing all grass and weeds and
otherwise reasonably maintaining the aesthetics of all land and lots in said
Addition which have not been sold to third parties. After fifteen (15) days
written notice, should the Developer fail in this responsibility, the City may
contract for this service and bill the Developer for reasonable costs. Such
amount shall become a lien upon all real property of the Addition so
maintained by the City, and not previously conveyed to other third parties,
120 days after Developer has notice of costs.
G. Any guarantee of payment instrument (Performance Bond, Letter of
Credit, etc.) submitted by the Developer or Contractor on a form other
than the one which has been previously approved by the City as
"acceptable" shall be submitted to the City Attorney and this Agreement
shall not be considered in effect until such City Attorney has approved the
instrument. Approval by the City shall not be unreasonably withheld or
delayed.
H. Any surety company through which a bond is written shall be a surety
company duly authorized to do business in the State of Texas, provided
that the City, through the City Manager, shall retain the right to reject any
surety company as a surety for any work under this or any other
Developer's Agreement within the City regardless of such company's
authorization to do business in Texas. Approval by the City shall not be
unreasonably withheld or delayed.
The Developer agrees to fully comply with the terms and conditions of all
other applicable development regulations and ordinances of the City.
J. The Developer agrees that the completed project will be constructed in
conformance with the Development Site Plan, Construction Plans and
other permits or regulatory authorizations granted by the City during the
development review process.
II. FACILITIES
A. ON -SITE WATER
The Developer hereby agrees to install water facilities to service lots as
shown on the final plat of the Addition. Water facilities will be installed
in accordance with plans and specifications to be prepared by the
Developer's engineer and released by the City. Further, the Developer
agrees to complete this installation in accordance with Ordinance No. 170
and shall be responsible for all construction costs, materials and
engineering. In the event that certain water lines are to be oversized
because of City requirements, the City will reimburse the Developer for
the oversize cost greater than the cost of an 8" line. Additionally, the City
agrees to provide temporary water service at Developer's request and
expense, for construction, testing and irrigation purposes only, to
individual lots during the construction of buildings, even though sanitary
sewer service may not be available to the buildings.
B. DRAINAGE
Developer hereby agrees to construct the necessary drainage facilities
within the Addition. These facilities shall be in accordance with the plans
and specifications to be prepared by Developer's engineers, released by
the Director of Public Works, the City, and made part of the final plat as
approved by the Planning and Zoning Commission. The Developer
hereby agrees to fully comply with all EPA and TNRCC requirements
relating to the planning, permitting and management of storm water which
may be in force at the time that development proposals are being
presented for approval by the City.
C. STREETS
The street construction in the Addition will be installed in accordance with
plans and specifications to be prepared by the Developer's engineer and
released by the Director of Public Works.
1. The Developer will be responsible for:
b) Installation of all street signs designating the names of the
streets inside the Addition, said signs to be of a type, size,
color and design standard generally employed by the
Developer and approved by the City in accordance with City
ordinances;
c) Installation of all regulatory signs recommended based upon
the Manual on Uniform Traffic Control Devices as prepared
by the Developer's engineer by an engineering study or
direction of the Director of Public Works. It is understood
that Developer may put in signage having unique
architectural features, however, should the signs be moved
or destroyed by any means, the City is only responsible for
replacement of standard signage.
2. All street improvements will be subject to inspection and approval
by the City. No work will begin on any street included herein prior
to complying with the requirements contained elsewhere in this
Agreement. All water, sanitary sewer, and storm drainage utilities
which are anticipated to be installed within the street or within the
street right-of-way will be completed prior to the commencement of
street construction on the specific section of street in which the
utility improvements have been placed or for which they are
programmed. It is understood by and between the Developer and
the City that this requirement is aimed at substantial compliance
with the majority of the pre -planned facilities.
It is understood that in every construction project a decision later
may be made to realign a line or service which may occur after
construction has commenced. The Developer has agreed to advise
the City Director of Public Works as quickly as possible when such
a need has been identified and to work cooperatively with the City
to make such utility change in a manner that will be least disruptive
to street construction or stability.
D. ON -SITE SANITARY SEWER FACILITIES
The Developer hereby agrees to install sanitary sewage collection facilities
to service lots as shown on the final plat of the Addition. Sanitary sewer
facilities will be installed in accordance with the plans and specifications to
be prepared by the Developer's engineer and released by the City.
Further, the Developer agrees to complete this installation in compliance
with all applicable city ordinances, regulations and codes and shall be
responsible for all construction costs, materials, engineering, permits and
Impact Fees. In the event that certain sewer lines are to be oversized
because of City requirements, the City will reimburse the Developer for the
oversize cost greater than the cost of an 8" line.
E. EROSION CONTROL
During construction of the Addition and after the streets have been
installed, the Developer agrees to keep the streets free from soil build-up.
The Developer agrees to use soil control measures, such as those
included in NCTCOG STANDARD SPECIFICATIONS FOR PUBLIC
WORKS CONSTRUCTION, DIVISION 1000 EROSION AND SEDIMENT
CONTROL, to prevent soil erosion. It will be the Developer's responsibility
to present to the Director of Public Works a soil control development plan
that will be implemented for this Addition. When in the opinion of the
Director of Public Works there is sufficient soil build-up on the streets or
other drainage areas and notification has been given to the Developer, the
Developer will have seventy-two (72) hours to clear the soil from the
affected areas. If the Developer does not remove the soil within 72 hours,
the City may cause the soil to be removed either by contract or City forces
and place the soil within the Addition at the contractor's expense. All fees
owed to the City will be collected prior to acceptance of the Addition.
After construction of the Addition and prior to acceptance by the City, the
Developer agrees to have a permanent erosion control plan prepared and
approved by the Director of Public Works and have the plan installed and
working, effectively, in the opinion of the Director of Public Works. This
erosion control will prevent soil erosion from the newly created lot/lots
from washing into street rights of way, drainage ways or other private
property.
F. AMENITIES
It is understood by and between the City and Developer that the Addition
may incorporate a number of unique amenities and aesthetic
improvements such as ponds, aesthetic lakes, unique landscaping, walls,
and may incorporate specialty signage and accessory facilities. The
Developer agrees to accept responsibility for the construction and
maintenance of all such aesthetic or specialty items such as walls,
vegetation, signage, landscaping, street furniture, pond and lake
improvements until such responsibility is turned over to a homeowners
association.
G. USE OF PUBLIC RIGHT-OF-WAY
It is understood by and between the City and Developer that the
Developer may provide unique amenities within public right-of-way, such
as landscaping, irrigation, lighting, etc., for the enhancement of the
Addition. The Developer agrees to maintain these amenities until such
responsibility is turned over to a homeowners association. The Developer
understands that the City shall not be responsible for the replacement of
these amenities under any circumstances and further agrees to indemnify
and hold harmless the City from any and all damages, loss or liability of
any kind whatsoever by reason of injury to property or third person
occasioned by its use of the public right-of-way with regard to these
improvements and the Developer shall, at his own cost and expense,
defend and protect the City against all such claims and demands.
H. START OF CONSTRUCTION
Before the construction of the water, sewer, streets or drainage facilities
can begin, the following must take place:
1. Approved payment and performance bonds must be submitted to
the City in the name of the City prior to commencement of any
work.
2. At least six (6) sets of construction plans to be stamped "Released
for Construction" by the Director of Public Works must be
submitted.
3. All fees required to be paid to the City.
4. Developer Agreement must be executed.
5. The Developer, or Contractor, shall furnish to the City a policy of
general liability insurance, naming the City as co-insured, prior to
commencement of any work. All insurance must meet the
Requirements of Contractor's Insurance attached hereto and
incorporated herein.
6. A Pre -Construction Meeting to be held with all Contractors, major
Sub -Contractors, Utilities and appropriate Government Agencies.
GENERAL PROVISIONS
A. INDEMNIFICATION
DEVELOPER COVENANTS AND AGREES TO INDEMNIFY AND DOES
HEREBY INDEMNIFY, HOLD HARMLESS AND DEFEND CITY, ITS
OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND
AGAINST ANY AND ALL CLAIMS OR SUITS FOR PROPERTY
DAMAGE OR LOSS AND/OR PERSONAL INJURY, INCLUDING
DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KIND OR
CHARACTER, WHETHER REAL OR ASSERTED, (INCLUDING,
WITHOUT LIMITATION, REASONABLE FEES AND EXPENSES OF
ATTORNEYS, EXPERT WITNESSES AND OTHER CONSULTANTS),
ARISING OUT OF OR IN CONNECTION WITH, DIRECTLY OR
INDIRECTLY, THE CONSTRUCTION, MAINTENANCE, OCCUPANCY,
USE, EXISTENCE OR LOCATION OF SAID IMPROVEMENT OR
IMPROVEMENTS, AND SHALL FURTHER BE LIABLE FOR INJURY
OR DAMAGE TO CITY PROPERTY, ARISING OUT OF OR IN
CONNECTION WITH ANY AND ALL ACTS OR OMISSIONS OF
DEVELOPER, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS, SUBCONTRACTORS, LICENSEES, INVITEES OR
TRESPASSERS.
DEVELOPER AGREES TO INDEMNIFY THE CITY, ITS OFFICERS AND
EMPLOYEES FOR ANY DAMAGES, CLAIMS OR LIABILITIES ARISING FROM
THE NEGLIGENT ACT OR OMISSION, OR OF THE CONCURRENT
NEGLIGENT ACT OR OMISSION, OF THE CITY, ITS OFFICERS AND
EMPLOYEES.
B. Venue of any action brought hereunder shall be in Fort Worth, Tarrant
County, Texas.
C. Approval by the Director of Public Works or other City employee of any
plans, designs or specifications submitted by the Developer pursuant to
this Agreement shall not constitute or be deemed to be a release of the
responsibility and liability of the Developer, his engineer, employees,
officers or agents for the accuracy and competency of their design and
specifications. Such approval shall not be deemed to be an assumption of
such responsibility and liability by the City for any defect in the design and
specifications prepared by the consulting engineer, his officers, agents,
servants or employees, it being the intent of the parties that approval by
the Director of Public Works signifies the City's approval on only the
general design concept of the improvements to be constructed. In this
connection, the Developer shall for a period of two (2) years after the
acceptance by the City of the completed construction project, indemnify
and hold harmless the City, its officers, agents, servants and employees,
from any loss, damage, liability or expense on account of damage to
property and injuries, including death, to any and all persons which may
arise out of any defect, deficiency or negligence of the engineer's designs
and specifications incorporated into any improvements constructed in
accordance therewith, and the Developer shall defend at his own expense
any suits or other proceedings brought against the City, its officers,
agents, servants or employees, or any of them, on account thereof, to pay
all expenses and satisfy all judgements which may be incurred by or
rendered against them or any of them in connection with herewith.
D. This Agreement or any part herein, or any interest herein, shall not be
assigned by the Developer without the express written consent of the City
Manager, which shall not be unreasonably withheld or delayed.
E. On all facilities included in this Agreement for which the Developer awards
his or her own construction contract, the Developer agrees to employ a
construction contractor who is approved by the City, and whose approval
shall not be unreasonably withheld or delayed, said contractor to meet
City and statutory requirements for being insured, licensed and bonded to
do work in public projects and to be qualified in all respects to bid on
public projects and to be qualified in all respects to bid on public projects
of a similar nature.
In addition, the Developer, or Contractor shall furnish the payment and
performance bonds in the name of the City prior to the commencement of
any work hereunder and shall also furnish to the City a policy of general
liability insurance.
F. Work performed under the Agreement shall be completed within two (2)
years from the date thereof. In the event the work is not completed within
the two (2) year period, the City may, at its election, draw down on the
performance bond, letter of credit or other security provided by Developer
and complete such work at Developer's expense; provided, however, that
if the construction under this Agreement shall have started within the two
(2) year period, the City may agree to renew the Agreement with such
renewed Agreement to be in compliance with the City policies in effect at
that time.
G. Prior to final acceptance of the Addition, the Developer shall provide to the
City three (3) copies of Record Drawings of the Addition, showing the
facilities as actually constructed.
H. Such drawings will be stamped and signed by a registered professional
civil engineer. In addition, the Developer shall provide electronic files
showing the grading plan and drainage area map; the plan and profile of
the sanitary sewer, storm drain, roadway and waterline; all lot lines, and
tie in to the state Plane Coordinate System.
III. OTHER ISSUES
A. OFF -SITE DRAINAGE — N/A
B. OFF -SITE SEWER — N/A
C. OFF -SITE WATER
The developer will construct 960 linear feet of 12-inch water line along FM
1709. The City will reimburse developer for oversize of 12-inch water line
for 360 linear feet at a cost of $5,454.00 and for all cost of 600 linear feet
of 12-inch water line at a cost of $47,627.00 for a total reimbursement for
water lines of $53,081.00.
D. PARK FEES
The developer will pay a Park Fee of $1200 per acre for 4.24 acres for a
total of $5,088.00.
E. TREE PRESERVATION ORDINANCE
All construction activities shall meet the requirements of the Tree
Preservation Ordinance No. 585-B.
SIGNED AND EFFECTIVE on the date last set forth below.
DEVELOPER: RCP Southlake Boulevard #1, Ltd.
Title:
Address: 32 Village Lane, Suite 200, Colleyville, Texas 76034
STATE OF
COUNTY OF
On , before me, , Notary
Public, personally appeared 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.
Notary Public
My commission expires:
CITY OF SOUTHLAKE, TEXAS
la
Andy Wambsganss, Mayor
ATTEST:
Lori Farwell, City Secretary
Date:
(SEAL)
REQUIREMENTS FOR IRREVOCABLE LETTER OF CREDIT
1. The Letter of Credit must have a duration of at least one year.
2. The Letter of Credit may be substituted for utility security deposits exceeding
$10,000.00. The City reserves the right to specify the face amount of the letter of
credit.
3. The Letter of Credit must be issued by a FDIC insured bank in a form acceptable
to the City of Southlake. The City reserves the right to approve/disapprove the
bank issuing the Letter of Credit.
4. The Letter of Credit must be issued by a bank that has a minimum capital ratio of
six (6%) percent, and has been profitable for each of the last two consecutive
years.
5. The customer must provide the City with supporting financial information on the
bank to allow the City to ascertain requirements are met. Suitable financial
information would be the previous two (2) years December 31 Call Reports
submitted to the FDIC and audited financial statements.
6. Partial drawings against Letters of Credit must be permitted.
7. The City must be able to draft on sight with proof of amount owed.
8. The customer pays any and all fees associated with obtaining Letter of Credit.
9. Expiring Letter of Credit must be replaced by substitute Letters of Credit at least
30 days prior to the expiration date on the Letter of Credit held by the City.
REQUIREMENTS FOR CONTRACTOR'S INSURANCE
Contractor's Insurance
1. Without limiting any of the other obligations or liabilities of the CONTRACTOR,
during the term of the Contract, the CONTRACTOR shall purchase and maintain the
following minimum insurance coverages with companies duly approved to do business
in the State of Texas and satisfactory to the CITY. In this section "Project" shall mean
the public facilities to be constructed by Developer or under Developer's contract with a
CONTRACTOR. Coverages shall be of the following types and not less than the
specified amounts:
a. Workers' compensation as required by Texas law, with the policy endorsed to
provide a waiver of subrogation as to the CITY; employer's liability insurance of
not less than the minimum statutory amounts.
b. Commercial general liability insurance, including premises- operations;
independent CONTRACTOR's liability, completed operations and
contractual liability covering, but not limited to, the liability assumed
under the indemnification provisions of this Contract, fully insuring
CONTRACTOR's (or Subcontractor's) liability for injury to or death of
CITY's employees and third parties, extended to include personal injury
liability coverage with damage to property of third parties, broad form
property damage, with minimum limits as set forth below:
General Aggregate......................$2,000,000
Bodily Injury $1,000,000 Each Occurrence
Property Damage $1,000,000 Each Occurrence
Products—Components/Operations Aggregate. $1,000,000
Personal and Advertising Injury ............ $ 1,000,000
(With Employment Exclusion deleted)
Each Occurrence ...................... $ 1,000,000
Contractual Liability:
Bodily Injury $1,000,000 Each occurrence
Property Damage $1,000,000 Each occurrence
The policy shall include coverage extended to apply to completed
operations, asbestos hazards (if this project involves work with asbestos)
and ECU (explosion, collapse and underground) hazards. The completed
operations coverage must be maintained for a minimum of one year after
final completion and acceptance of the work, with evidence of same filed
with CITY.
C. Comprehensive automobile and truck liability insurance, covering owned,
hired and non -owned vehicles, with a combined bodily injury and property
damage minimum limit of $1,000,000 per occurrence; or separate limits of
$500,000 for bodily injury (per person), and $500,000 for property
damage. Such insurance shall include coverage for loading and
unloading hazards.
d. Property Insurance (Builder's All Risk)
(i) CONTRACTOR shall purchase and maintain, at all times during the
term of its Contract with the Developer property insurance written
on a builder's risk "all-risk" or equivalent policy form in the amount
of the initial contract price, plus value of subsequent contract
modifications and cost of materials supplied or installed by others,
comprising total value for the entire Project at the site on a
replacement cost basis without optional deductibles. Such property
insurance shall be maintained, unless otherwise in writing by all
persons and entities who are beneficiaries of such insurance, until
final payment has been made, or until no person or entity other
than the CITY has an insurable interest in the property required by
this paragraph to be covered, whichever is later. This insurance
shall include interests of the CITY, the CONTRACTOR,
Subcontractors and Sub -Subcontractors in the Project.
(i i) Property insurance shall be on an "all-risk" or equivalent policy form
and shall include, without limitation, insurance against the perils of
fire (with extended coverage) and physical loss or damage
including, without duplication of coverage, theft, vandalism,
malicious mischief, collapse, earthquake, flood, windstorm,
falsework, testing and startup, temporary buildings and debris
removal including demolition occasioned by enforcement of any
applicable legal requirements, and shall cover reasonable
compensation for CONTRACTOR's services and expenses
required as a result of such insured loss.
(iii) If the insurance required by this paragraph requires deductibles, the
CONTRACTOR shall pay costs not covered because of such
deductibles.
(iv) This property insurance shall cover portions of the Work stored off
the site, and also portions of the Work in transit.
d. OWNER's Protective Liability Insurance:
(i) CONTRACTOR shall obtain, pay for and maintain at all times
during the prosecution of the work under the contract between the
CONTRACTOR and the Developer, a CITY's protective liability
insurance policy naming the CITY as insured for property damage
and bodily injury, which may arise in the prosecution of the work or
CONTRACTOR's operations under the contract.
(i i) Coverage shall be on an "occurrence" basis, and the policy shall be
issued by the same insurance company that carries the
CONTRACTOR's liability insurance with a combined bodily injury
and property damage minimum limit of $1,000,000 per occurrence.
e. "Umbrella" Liability Insurance:
The CONTRACTOR shall obtain, pay for and maintain umbrella liability
insurance during the term of the Contract between the CONTRACTOR
and the Developer, insuring CONTRACTOR for an amount of not less
than $5,000,000 per occurrence combined limit for bodily injury and
property damage that follows form and applies in excess of the primary
liability coverages required herein above. The policy shall provide "drop
down" coverage where underlying primary insurance coverage limits are
insufficient or exhausted.
Policy Endorsements
1. Each insurance policy to be furnished by CONTRACTOR shall include the
following conditions by endorsement to the policy:
a. name the CITY as an additional insured as to all applicable policies;
b. each policy shall require that 30 days prior to cancellation, non -
renewal or any material change in coverage, a notice thereof shall
be given to CITY by certified mail. If the policy is canceled for
nonpayment of premium, only 10 days written notice to CITY is
required;
C. the term "CITY" shall include all authorities, boards, bureaus,
commissions, divisions, departments and offices of the CITY and
individual members, employees and agents thereof in their official
capacities, and/or while acting on behalf of the CITY;
d. the policy phrase "other insurance" shall not apply to the CITY where the
CITY is an additional insured on the policy.
2. Special Conditions
a. Insurance furnished by the CONTRACTOR shall be in accordance with
the following requirements:
any policy submitted shall not be subject to limitations, conditions or
restrictions deemed inconsistent with the intent of the insurance
requirements to be fulfilled by CONTRACTOR. The CITY's
decision thereon shall be final;
ii. all policies are to be written through companies duly licensed to
transact that class of insurance in the State of Texas; and
iii. all liability policies required herein shall be written with an
"occurrence" basis coverage trigger.
b. CONTRACTOR agrees to the following:
�. CONTRACTOR hereby waives subrogation rights for loss or damage to the extent same
are covered by° insurance. Insurers shall have no right of recovery or subrogation against
the CITY, it being the intention that the insurance policies shall protect all parties to the
contract and be primary coverage for all losses covered by the policies;
ii. companies issuing the insurance polices and CONTRACTOR shall
have no recourse against the CITY for payment of any premiums or
assessments for any deductibles, as all such premiums and
deductibles are the sole responsibility and risk of the
CONTRACTOR;
iii. approval, disapproval or failure to act by the CITY regarding any
insurance supplied by the CONTRACTOR (or any Subcontractors)
shall not relieve the CONTRACTOR of full responsibility or liability
for damages and accidents as set forth in the Contract Documents
or this Agreement. Neither shall be bankruptcy, insolvency or
denial of liability by the insurance company exonerate the
CONTRACTOR from liability;
V. deductible limits on insurance policies exceeding $10,000 require
approval of the CITY;
vi. any of such insurance policies required under this paragraph may
be written in combination with any of the others, where legally
permitted, but none of the specified limits may be lowered thereby;
vii. prior to commencement of operations pursuant to this Contract, the
Developer or the Developer's CONTRACTOR shall furnish the
CITY with satisfactory proof that he has provided adequate
insurance coverage in amounts and by approved carriers as
required by this Agreement;
viii. CONTRACTOR shall provide notice of any actual or potential claim
or litigation that would affect required insurance coverages to the
CITY in a timely manner;
ix. CONTRACTOR agrees to either require its Subcontractors to
maintain the same insurance coverage and limits as specified for
the CONTRACTOR or coverage of Subcontractors shall be
provided by the Contract; and
X. Prior to the effective date of cancellation, CONTRACTOR shall
deliver to the CITY a replacement certificate of insurance or proof
of reinstatement.
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