HomeMy WebLinkAboutresolution.council.022-98 RESOLUTION NO. Z2-
Series of 1998
A RESOLUTION OF THE CITY OF ASPEN, COLORADO, APPROVING A ROAD
MAINTENANCE AGREEMENT BETWEEN PEARCE EQUITIES GROUP 1I LIMITED
LIABILITY COMPANY AND THE CITY OF ASPEN FOR THE MARRON CREEK CLUB
SUBDiVISION, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID
DOCUMENT(S) ON BEHALF OF THE CITY OF ASPEN, COLORADO.
WHEREAS, there has been submitted to the City Council a Road Maintenance Agreement
between the City of Aspen, Colorado, and Pearce Equities Group II Limited Liability Company a
copy of which contract is annexed hereto and made a part thereof.
NOW, WHEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ASPEN, COLORADO:
Section One
That the City Council of the City of Aspen hereby approves that Road Maintenance
Agreement between the City of Aspen, Colorado, and Pearce Equities Group rr Limited Liability
Company, a copy of which is annexed hereto and incorporated herein, and does hereby authorize
the City Manager of the City of Aspen to execute said contract on behalf of the City of Aspen.
Dated: ~J~-fi~' /G:> ,1998.
JohnS.~Bennett(~~
Mayor
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a
true and accurate copy of tha resolution adopied by the City Council of the City of Aspen,
Colorado, at a meeting held ~ t.~ ,1998.
ROAD MAINTENANCE AGREEMENT
BETWEEN
PEARCE EOUITIES GROUP II LIMITED LIABILITY COMPANY
THE CITY OF ASPEN
FOR THE MAROON CREEK CLUB SUBDIVISION
This Agreement is made this __ day of , 1998, by and
between PEARCE EQUEUIES GROUP II LIMITED LIABILITY COMPANY, a Utah limited
liability company CPearce") and the CFFY OF ASPEN, a home rule municipality of the state of
Colorado ("City").
WHEREAS, Pearce and Pitkin County did enter into that certain Road Maintenance Agreement
dated August 25, 1993, and recorded in the Pitkin County Recorder's Offic~ at Book 730, Page
739, for road maintenance of certain publicly dedicated public roads at the Maroon Creek Club
Subdivision; and
WHEREAS, portions of the roads referenced in the Road Maintenance Agreement between
Pearce and the County have been annexed into the City of Aspen as part of the Maroon Creek
Club Subdivision Annexation; and
WHEREAS, the parties hereto desire to enter into this agreement for the provision of road
maintenance services for'those roads within the Maroon Creek Club Subdivision that are now
part of the City of Aspen.
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements
hereinafter set forth, and for good and valuable consideration, the parties hereto agree as follows:
1. Maintenance Work. Pearce agrees to furnish all labor, materials, equipment, tools and
services necessary and incidental to perform and complete in a workmanlike matter all work
required for the maintenance, including snow removal and signage, repair and improvement to
Roads (the "Maintenance Work"). The Maintenance Work shall not extend to any paving,
surfacing or other road improvements to the unpaved portions of existing Stage Road northerly
of its intersection with new Stage Road.
2. Term: The term of this Agreement shall become effective on September 30, 1997.
3. Payments for Regular Maintenance Work. For the performance of the regular
Maintenance Work to the Roads as described in Exhibit "A" attached hereto the City agrees to
pay Pearce on or before Aprill each year $I0,000 per mile of roadway (the "Regular
Maintenance Payment"). Commencing with the Regular Maintenance Payment due for the
second year of this Agreement and each year thereafter during the term hereof, the Regular
· Maintenance Payment due Pearce shall be increased, but not decreased, in accordance with
changes for the prior calendar year in the U.S. Department of Labor's Bureau of Labor Statistic's
Consumer Price Index All Urban Consumers, U.S. City Average, All Items.
?~"' 4. Payments for Major Capital Improvements.
A. ' Major capital improvements to the Roads shall consist of chip sealing (anticipated
to be necessary every 5 to 7 years) and repaving (anticipated to be necessary every 12 to 15
years). For such capital improvements, the City agrees to pay Pearce an amount to be estimated
by the Director of Streets (the "Director") as the cost of such improvements as if the work were
to be performed by the City. Nothing herein shall prevent Pearee from performing major capital
improvements earlier or more often than regularly scheduled by the City; however, the City shall
be under no obligation to pay Pearce for major capital improvements in amounts greater than the
cost to the City as if regularly scheduled and when such work is performed earlier or more often
by Pearce an appropriate adjustment shall be made to the amount due Pearce from the City.
Payments for major capital improvements shall be made by the City to Pearce at such time as a
"qualified road contractor" as described in Paragraph 5B. below has entered into a subcontract
with Pearce to perform such work.
B. All major capital improvements shail be done under the general supervision and
direction of the Director or his designee. The Director shall decide any and all questions which
may arise as to the quality and acceptability of materials furnished, work performed, rate of
progress of the work, contract interpretation and change orders (within the limits of his
authority).
,,,~., 5. Assignment and Subcontracting. Pearce may assign or Subcontract its obligations
hereunder as follows:
A. Pearee shall be permitted to assign this Agreement to the Maroon Creek Club
Master Association or similar entity constituted to provide perpetual maintenance to the New
Roads whereupon Pearce shall be released from all further obligations hereunder.
B. Pearce or any permitted assignee of Pearce may subcontract its obligations
hereunder. Major capital improvements may only be subcontracted with the consent of the City
to a qualified mad contractor and such subcontractor shall be bound by the terms of this
Agreement. This Agreement shall not be construed as creating any contractual relationship
between any subcontractor and the City
6. Indemnification and Insurance Rectuirements.
A. Pearce and any subcontractor shall release, discharge, indemnify and hold
harmless the City and its officials, employees, agents and representatives from and against
liability for any claim, demand, loss, damages, penalty, judgment, expenses~ costs (including
costs of investigation and defense), fees (including reasonable attorney and expert witness fees)
or compensation in any form or kind whatsoever for any bodily injury, death, personal injury or
property damage arising out of or in connection with any negligent act, intentional act, error or
/,~..,. omission by Pearce or any subcontractor (including, by definition~ its officials, employees,
subcontractors, agents and representatives) or for any resulting liability alleged to accrue against
the City on account of Pearce's or any subcontractor's acts, errors or omissions; provided,
however, that such indemnity shall not be construed as an indemnity for bodily injury or property
damage arising from the sole negligence or intentional acts of the City or its employees. Pearce
shall investigate, process, respond to, adjust, provide defense for and defend, pay or settle all
claims, demands, or lawsuits related hereto within the scope of said indemnity at its sole expense
and shall bear all other costs and expenses related thereto, even if the claim, demand or lawsuit is
groundless, false or fraudulent.
B. To fund the above indemnity, Pearce may: (i) secure and maintain for the term
hereof such insurance policies, from companies licensed in the State of Colorado, as will protect
itself, the City (with the City as named insured), and others as specified, from claims for bodily
injuries, death, personal injury or property damage, which may arise out of or result from
Pearce's or any subcontractor's acts, errors or omissions, or (ii) reimburse the City, pursuant to
Paragraph 7F. below, to maintain such coverage. The following insurance coverage, at or above
the limits indicated and including such endorsements as are indicated, are required
I. Statutory Workman's Compensation Colorado Statutory Minimums
1I Comprehensive General Liability:
Bodily Injury/Each Person $ 500,000
/Each Occurrence $1,000,000
Pr0pertyDamagefEachAccident $ 500,000
/Aggregate $ i ,000,000
Endorsements: Comprehensive Form, Premises/Operations, Underground, Explosions &
Collapse Hazard, if necessary depending on construction, Broad Form Blanket Contractual (Hol~t
Harmless C
overage), Independent Contractors and Subcontractors, Personal Injury, with Employment
Exclusion Deleted.
Ill. COmprehensive Motor Vehicle Liability Insurance:
Bodily Injury/Each Person $ 500,000
/Each Occurrence $1,000,000
Property Damage/Each Accident $ 500,000
/Aggregate $1,000,000
Endorsements: Any Auto, All Owned Autos, Hired Autos, Non-Owned Autos.
IV. 'Special Coverages
I. Performance Bond and
Labor and Material
Payment Bond (for
projects greater than $25,000) 100%
2. Professional Errors and Omissions
Insurance for projects requiring
professional design or supervision:
Each Occurrence $ 500,000
Aggregate $1,000,000
C. To provide evidence of the required insurance coverage, copies of Certificates of
Insurance in a form acceptable to the City shall be filed with the Director no later than ten (10)
calendar days prior to commencement of operations affecting the City. Thesl Certificates of
Insurance shall contain a provision that coverage afforded under the policies will not be canceled
or materially altered unless at least thirty (30) calendar days prior written notice sent by certified
mall, return receipt requested, has been given to the City.
D. In addition, these Certificates of Insurance shall contain the following clauses:
(i) Underwriters and insurers shall have no right of recovery or subrogation
against the City, it being the intention of the parties that the insurance policies so effected
shall protect both parties and be primary coverage for any and all losses covered by the
above described insurance.
(ii) The insurance companies issuing the policy or policies shall have no
recourse against' the City for payment of any premiums or for assessment under any form
of policy.
(iii) Any and all deductibles in the above described insurance policies shall be
assumed by and be for the amount of, and at the sole risk of Pearce.
(iv) Location of Operations shall be: "all operations and locations within the
City of Aspen and effecting City government.
E. Certificates of Insurance for all renewal policies shall be delivered to the Director
at least fifteen (15) days prior to a policy's expiration date except for any policy expiring on or
after the expiration date of this Agreement, unless renewed.
F. Peatee may elect to have the City supply the insurance coverage required in this
Paragraph 7. If the City supplies the coverage, the City shall reduce the Regular Maintenance
Payment by an amount sufficient to pay the pro rata share of the City's total premium for such
coverage attributable to the Roads.
7. Termination. Either party shall have the right upon written notice to the other with or
without cause to terminate this Agreement. Where notice of termination is given by the City, the
City shall, from and after the effective date thereof, perform all Maintenance Work to the Roads.
Where notice of termination is given by Pearce, the effective date shall not be less than sixty (60)
days, unless the parties can agree to a shorter period, so as to allow the City adequate time to
commence performance of Maintenance Work to the Roads.
8. Notices. Notices and other communications which may be given, or are required to be
/~"' given hereunder, shall be in writing and shall be deemed given to a party when delivered
personally or when deposited in the United States mail with sufficient postage affixed and
addressed to such party at the respective address shown below:
Pearce:
Pearce Equities Group II Limited Liability Company
601 East Hyman Avenue, Suite 104
Aspen, Colorado 81611
Copy to:
Ronald Garfield
Garfield & Hecht, P.C.
601 East Hyman
Aspen, Colorado 81611
City:
City Manager
City of Aspen
130 South Galena Street
Aspen, Colorado 81611
Copy to:
City Attorney
City of Aspen
130 South Galena Street
Aspen, Colorado 81611
9. Miscellaneous.
A. Either party shall have the right and power to bring suit in its own name for any
legal or equitable relief due to lack of compliance with any provisions of this Agreement. If any
court proceedings are instituted in connection with the rights of enfomement of remedies
provided in this Agreement, the prevailing party shall be entitled to reimbursement of its costs
and expenses, including reasonable attorneys' fees, in connection therewith.
B. The failure of either party to insist upon the strict performance of any provisions
of this Agreement or to exercise any right or option available to it, or to serve any notice or to
institute any action, shall not be a waiver or a relinquishment for the future of any such provision.
C. This Agreement may not be mended, nor may any rights hereunder be waived,
except by an instrument in writing executed by the parties hereto.
D. The interpretation, enforcement or any other matters relative to this Agreement
shall be construed and determined in accordance with the laws of the State of Colorado.
E. The parties agree, at the request of either one of them, to fully and promptly
cooperate to correct any scrivener, clerical or other errors found in any legal descriptions, in any
other provisions of this document or in any exhibits hereto.
F. All provisions of this Agreement inure to the benefit of and are binding upon the
parties hereto, their heirs, successors, assigns and personal representatives.
G. In the event that Peame shall be delayed Or hindered from performing under this
Agreement by reason of a natural disaster, weather or seasonal conditions, labor troubles,
inability or procure materials, failure of power or other Utilities, war or other reasons beyond its
Control, then the period for the performance hemunder shall be extended for a period equivalent
to the period of such delay or hindrance.
IN WITNESS WHEREOF, the parties have executed this Agreement as the day and
year first above written.
PEARCE: CITY:
PEARCE EQUITIES GROUP I1 LIM1TED CITY OF ASPEN
LIABILITY COMPANY, a Utah Aspen, Colorado
limited liability company
By: By: / _-~
James T. Pearce, Jr.
Member
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