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HomeMy WebLinkAboutresolution.council.014-99 r". r" 0. RESOLUTION NO. Ji- Series of 1999 ,p'. ,- A RESOLUTION OF THE CITY OF ASPEN, COLORADO, APPROVING A PROPOSAL BETWEEN THE CITY OF ASPEN, COLORADO, AND KOCH MATERIALS COMPANY, 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 PROPOSAL between the City of Aspen, Colorado and KOCH MATERIALS COMPANY a copy df which PROPOSAL 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 PROPOSAL between the City of Aspen, Colorado, and KOCH MATERIALS COMPANY a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Attorney to prepare requisite contract documents and City Manager of the City of Aspen to. execute said contract documents on behalf of the City of Aspen. Dated: ~ I , 1999 y S. Bennett, Mayor r" 1""'\ r"'\ . I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held ~ ~~, 1999. ~J~ Kathryn S. Koch, City Clerk g:\john\word\resos\koch materials reso PERFORMANCE ROADSN February 16, 1999 Mr. Jack Reid Superintendent of Streets City of Aspen 1080 Power Plant Road Aspen, CO 81611 Dear Jack: As discussed, please find the enclosed executed Koch Performance Roads proposals. I look forward to completing final negotiations and seeing you next week. As previously discussed, once we come to agreement on the final terms of the General and Special Conditions, the final deal agreed upon between Koch and Aspen will be subject to Koch's senior management approval. If you have any questions, please do not hesitate to call me at 316-828-5297. S~ffi- James Geer Project Manager cc: Bruce Walters (w/enc1osure) PO 80x 2338 . Wichita, Kansas 67201-2338 . 316.828.8399 ~. Koch Materials Company PERFORMANCE ROADS™ .,,-..,. .~ 1999 Aspen Pavement Program .~ Table of Contents ~ Summary .... ........................................................... ... ............. .........2 Proj ect Scope.................................................................................. 3 Project Schedule ....................... ... ...................................... ..... ........4 Price and Project Financing............................................................ 5 Acceptance of Proposal.......... ................ ......... ........... ............. ....... 6 Attachment 1 - 1999 Aspen Pavement Program Streets ................ 7 Attachment 2 - Limited Warranty ..................................................9 ~. ...-, 1 ~ SUMMARY - The purpose of this proposal is to express Koch Materials Company's ("Koch's") interest in providing services to the City of Aspen ("City") in connection with the streets identified in the City's Six-year pavement management plan. This proposal is intended to provide a prelude to a formal, binding and written contract between Koch and the City. However, acceptance of this proposal is not in itself intended to constitute a complete statement of, or a legally binding commitment on the part of either the City or Koch. If the City agrees with the proposal as set forth herein, by so indicating its agreement in writing, the parties will negotiate to reach a definitive agreement on a contract at which time this Proposal shall become a part of the Contract between the parties. Koch Materials Company's PERFORMANCE ROADSTM Group proposes to rehabilitate and warrant the performance of the rehabilitation of the streets identified in Attachment #1 ("1999 Aspen Pavement Program"). Koch has evaluated the streets, prepared a plan for the rehabilitation of the streets, and obtained bids from local construction companies to develop Koch's proposal for the City's consideration. It is intended by the submittal of this proposal to provide the City with a unique plan specifically tailored to the streets identified in the 1999 Aspen Pavement Program. Koch will combine the job specific designs, quality management, high quality materials, contractor workmanship, paving ~ technology advances and experience to achieve and deliver a superior cost effective product. The combination of any of these components may and or will differ for each street, and Koch advises the City not to duplicate any or all of these components on future jobs without consultation with Koch due to the customized nature of each combination of components. ~ 2 ,,-.., PROJECT SCOPE - The work will consist of the rehabilitating the streets identified in the 1999 Aspen Pavement Program in the manner indicated. A description of the activities follows: Asphalt Re.pairs: Koch will excavate areas of broken asphalt to a minimum of 4 inches in depth or as required, stabilize the existing subgrade in the excavated areas as needed, and place and compact asphalt to a grade consistent with the existing roadway. Crack Sealing: Koch will seal cracks and joints. Cracks and joints will be thoroughly cleaned and dried before application of an approved hot applied joint sealer. The crackfiller will then be heated and extruded flush with the road surface. Asphalt Reconstruction: Reconstruction shall consist of scarifying or rotomilling the existing asphalt to a depth of up to 6 inches; removing the scarifiedlrotomilled material from the site; and shaping, grading, watering, and compacting the subgrade for placement of asphalt. Koch will then place and compact a 4 inch asphalt concrete base course and a 2 inch polymer modified asphaltic concrete surface course as determined from Koch's performance design and local geotechnical information. The asphalt will be placed using a 30-40 foot ski for smoothness or other approved methods. Polymer Modified Asphalt Cement Overlay: Koch will prepare the paving surface by sweeping all debris from the asphalt, providing a tack coat, and placing and compacting the ",........,. asphalt to the required grade and depth. Manholes and Water Valves: Koch will adjust the manholes and water valves to the required grade during construction. Pavement Markings: Koch will replace all existing striping and pavement markings. Striping shall consist of placing a 4 inch white or yellow stripe consistent with striping used by the City of Aspen. Koch will take direction from the City for placing the striping and pavement markings. Traffic Control: Koch will provide traffic control during construction. Public Outreachflnformation: Koch will provide updates as to the scope of its work and the timing as various areas are affected by the work. Where appropriate, Koch will provide maps that can be published in the newspaper or used as door-to-door hand-outs. The purpose will be to apprise the public of the expected type and duration of inconvenience due to construction. Koch will provide a contact phone number for public inquiry/complaints and provide alternate routes to minimize the traffic delays within the construction zones. ",........,. To maximize long term performance the Pavement will be designed to optimize compliance with a series of Performance Criteria over the life of the road. The Performance Criteria are defined in the warranty section of this proposal which is included as Attachment #2. Final street rehabilitation plans and the staging schedule for construction will be forwarded to the City for approval. At all times, the City will be informed of project progress. 3 ~ ,,-...,. ",........, PROJECT SCHEDULE - The rehabilitation will be completed in three stages: Phase I: The approximate boundaries of Phase I include those streets south of Main Street, from 2nd Street east to Original Street. The Work in Phase I will begin in April after the 1999 Ski Season has closed and as good weather conditions allow for optimal asphalt installation, with completion targeted on or before May 31, 1999. Phase II: The Work in Phase II consists of new paving, overlay, and reconstruction of Roaring Fork Road, north of Gillespie Avenue. The work will not begin in this area until the new sanitary sewer is completed. The sewer line is anticipated to be completed by early September of 1999. Phase III: All other Work outside of Phase I and Phase II will progress from the Notice to Proceed until project completion, and in such a way as to reasonably minimize the impact upon the City's cultural activities during this time. Project completion is targeted for October 15, 1999 with this construction sequencing. Koch will evaluate any innovative techniques to speed up construction. Koch will rely upon the City to resolve any utility conflicts. Koch will work with the City's representatives in an effort to expedite relocation of any utilities within the project limits. 4 f""""".. PRICE - Koch proposes to provide pavement design, rehabilitation, reconstruction, and limited warranty for the following price: Lump Sum Cost to City *$2,748,567.00 *This price is based on the condition of the streets as of November of 1998. Any damage due to snow removal or other causes since that time and the commencement of Koch's work has not been considered in the above lump sum price. Also, Koch has not added any sales tax or other applicable local taxes to the above price., In accordance with our usual proposal practice, we ask that you respond to our proposal on or before February 28, 1999. Should you need additional time beyond that date, please contact us for any revisions that may be required due to changes in the marketplace. LIMITED WARRANTY - Koch proposes to provide a limited warranty as set forth in Attachment #2. In addition, Koch proposes to offer a warranty performance bond for its maintenance obligation during the life of the limited warranty. PROJECT FINANCING PROGRAM - Under this program, Koch Financial Corporation (KFC) proposes to finance the cost of Aspen's Six Year Pavement management plan allowing the City to make payments to KFC over a 15-year period at 1.75% above the 8 year average life AAA rated ,.-.,.., Municipal Market Data Index (MMDn as published daily in the Wall Street Joumal. The rate would be fixed at closing of the financing documents. Financing would be under a separate agreement between the City and KFC. KFC's offer to finance is subject to a standard due diligence investigation. KFC will work directly with the City to develop a frnancing plan that meets their specific needs. Repayment term, frequency of payments, and timing can be structured to work within the budget of the City. If financing is provided by KFC, the finance agreement shall provide that loan payments shall be subject to annual appropriation of the Aspen City Council. Sincerely, ^:IJIANY Mark De ries Vice President, Performance Roads Bruce Walters Regional Sales Manager f~' 5 ~. ,-., ,-.. ACCEPTANCE OF PROPOSAL AND AUTHORIZATION TO PROCEED WITH NEGOTIATION FOR CONTRACT CITY OF ASPEN: By: Title: ~~~ DATE:~ 6 "-..,, /"'""'.. BRANCH NAME BA SRA S-MO N_4TH N_8TH N_8TH N-GL N-WE OR CL DA DU DU E-HY S-ML W-CO E-BL PC DU E-HY GT N_2ND N_2ND N-GR N-SP PA PP RA RKR W-SM CML ~, Attachment #1 CITY OF ASPEN 1999 ASPEN PAVEMENT PROGRAM STREETS STREET BAY ST S. RIVERSIDE AVE. S. MONARCH ST. N. 4TH ST. N. 8TH ST. N. 8TH ST. N. GALENA ST. N. WEST END ST. ORIGINAL ST. CLEVELAND ST. DALE AVE. DURANT AVE. DURANT AVE. E. HYMAN AVE. S. MILL ST. W. COOPER AVE. E. BLEEKER ST. PARK CIRCLE DURANT AVE. E. HYMAN AVE. GILBERT ST. N. 2ND S1. N. 2ND ST. N, GARMISCH ST. N. SPRING ST. PARK AVE. POWER PLANT RD. RACE ST. ROARING FORK RD. W. SMUGGLER ST. CEMETERY LN. SECTION # FROM: - TO: 1 - N. SPRING - END 1 - HWY. 82 - GRAVEL 3 - DURANT AVE. - SUMMIT ST. 1 - W. MAIN ST. - THRU W. BLEEKER ST. 2 - HWY 82 - W. SMUGGLER ST. 3 - W. SMUGGLER ST. - MEADOWS RD. 1 - E. MAIN ST. - AROUND CUL-DE-SAC 1 - E. COOPER AVE. - E. HYMAN AVE. 2 - DURANT AVE. - UTE AVE. 2 - E. HYMAN AVE. - E. HOPKINS AVE. 1 - N. RIVERSIDE AVE. - PARK AVE. 3 - ORIGINAL ST. - WEST END ST. 4 - WEST END S1. - RIVER 5 - ORIGINAL ST. - S. WEST END ST. 2 - MALL - DURANT AVE. 1 - S. GARMISCH ST. - S. 1ST ST. 1 - N. GARMISCH ST. - N. MONARCH ST. 1 - SPRUCE ST. - 500 PARK CR. 1 - S. GARMISCH ST. - S. ASPEN ST. 1 - GARMISCH ST. - S. ASPEN ST. 1 - S. ASPEN ST. - S. MONARCH ST. 1 - W. MAIN ST. - THRU W. BLEEKER ST. 2 - W. BLEEKER ST. - ALLEY 2 - BLEEKER ST. - HALLAM ST. 2 - GIBSON AVE. - BAY ST. 1 - THRU PARK CR. - HWY. 82 1 - 930 W. SMUGGLER ST. - PP BRIDGE 1 - SOUTH AVE. - SPRUCE ST. 1 - GILLESPIE ST. - MUSIC TENT RD. 4 - N. 7TH ST. -THRUDRIVEWAY 930 W-SM 2 - MTN. VIEW DR. - COUNTY LINE 7 ~ BRANCH NAME E-HO E-HO GB GB GB GB LP LP N-GR PP RKR RM W-HO W-HO W-HO W-HO W-HY ~\ W-SM DN DU DU E-BL E-CO N-MO N_2ND N_6TH N-SP OR PC S-GL W-BL W-HO ~. STREET E. HOPKINS AVE. E. HOPKINS AVE. GIBSON AVE. GIBSON AVE. GIBSON AVE. GIBSON AVE. LONE PINE RD. LONE PINE RD. N. GARMISCH ST. POWER PLANT RD. ROARING FORK RD. RED MOUNTAIN RD. H. HOPKINS AVE. W. HOPKINS AVE. W. HOPKINS AVE. W. HOPKINS AVE. W. HYMAN AVE. W. SMUGGLER ST. DEAN ST. DURANT AVE. DURANT AVE. E. BLEEKER ST. E. COOPER AVE. N. MONARCH ST. N. 2ND ST. N. 6TH ST. N. SPRING ST. ORIGINAL ST. PARK CIRCLE S. GALENA ST. W. BLEEKER ST. H. HOPKINS AVE. SECTION # FROM: - TO: 5 - ORIGINAL ST. - CLEVELAND ST. 6 - CLEVELAND ST. - END OF STREET/RIVER 1 - RED MTN DR. - LONEPINE RD. 2 - LONEPINE RD. - SOUTH AVE. 3 - SOUTH AVE. - NEALE AVE. 4 - THRU NEALE AVE. - PARK CIRCLE 1 - GIBSON AVE. - INDEPENDENCE PL. 2 - THRU INDEPENDENCE PL. - RED MTN. RD. 2 - HALLAM - FRANCIS ST. 2 - PP BRIDGE - CEMETERY LN. 2 - MUSIC TENT RD. - GILLESPIE ST. 1 - N. MILL ST. BRIDGE - HUNTER CRK BRIDGE 1 - S. GARMISCH ST. - THRU S. 2ND ST. 2 - S. 3RD ST. - THRU S. 4TH ST. 3 - S. 4TH ST. - THRU S. 5TH ST. 3 - S. 5TH ST. - THRU S. 7TH ST. 1 - S. GARMISCH ST. - S. 3RD ST. 1 - N. 1ST ST. - N. 2ND ST. 1 - S. ASPEN ST. - S. MONARCH ST. 1 - S. ASPEN ST. - S. MILL ST 2 - S. MILL ST. - ORIGINAL ST. 3 - RIO GRANDE PL. - N. SPRING ST. 3 - S. GALENA ST. - ORIGINAL ST. 1 - E MAIN ST. - THRU W. BLEEKER ST. 2 - ALLEY - W. FRANCIS STREET 2 - W. BLEEKER ST. - THRU W. HALLAM ST. 1 - MAIN ST. - RIO GRANDE PL. 1 - E. COOPER AVE. - DURANT AVE. 2 - 500 PARK CR. - GIBSON 1 - MAIN ST. - E. COOPER AVE. 2 - N. 2ND ST. - N. 3RD ST. 1 - 2. 2ND THRU 3RD STREET 8 r', Attachment #2 PERFORMANCE ROADS™ IS-YEAR LIMITED WARRANTY 1999 Aspen Pavemeut Program December 29, 1998 This Limited Warranty ("Warranty") is provided by Koch Materials Company ("Koch"), 4111 East 37th Street North, Wichita, KS 67220, to the City of Aspen ("Aspen"). 1.0 LIMITED WARRANTY Koch warrants that the Pavement shall meet the Performance Criteria contained in Section 7.0 of this Warranty. SEE BELOW FOR EXCEPTIONS, EXCLUSIONS, AND LIMITATIONS. 2.0 DEFINITIONS Annual Pavement Maintenance Plan - shall have the meaning provided in Section 8.1. 1999 Aspen Pavement Program Streets - shall be those streets identified on "Attachment 1" to this Warranty. Block - shall mean any contiguous area of Pavement extending 300 feet. rx. Calculated Index - shall have the meaning provided in Section 8.4(c). Class 2 or 3 Trucks - Class 2 Trucks are those 18-25 feet in length and Class 3 are those greater than 25 feet in length. Emergency Pavement Repairs - shall have the meaning provided in Section 8.2. Force Majeure - shall mean any event or occurrence which is beyond the reasonable control of Koch, including but not restricted to an Act of God, act of the public enemy, act or failure to act of governmental authorities, strikes, secondary boycotts, civil disturbances, war, epidemics, extensive periods of unsuitable low temperatures, flood, fire, court orders or other occurrences, similar or dissimilar to the foregoing, that prevents, interrupts or delays the work or performance of Koch's obligations under the Warranty. Heavy Construction Equipment - shall mean those vehicles and machinery weighing in excess of forty (40) tons used in the construction of housing developments, recreational developments, commercial developments and roadways. Passage of such equipment shall be repeated and continuous when incident to construction activity of a duration longer than two weeks. Repeated and continuous passage of Heavy Construction Equipment is deemed to fall outside of normal and expected roadway traffic contemplated by this Warranty, and Koch's obligation to repair Pavement damage for such activity under this Warranty shall be limited as provided in Section 5. r"\ Pavement - the layers of bound mineral aggregates placed upon the 1999 Aspen Pavement Program Streets. 9 /"'""'. Paving Season - April1 to November 1. Performance Criteria - those standards described in Section 7.0. Repair and Maintenance Expenditures - all payments made by Koch to perform work under this Warranty, and all third party costs, internal costs, expenses and overhead expended to accomplish the same. Substantially Complete - shall mean when the Pavement is sufficiently complete that all lanes are ready to be opened to traffic. Substantial Completion - shall be the date when the Pavement is sufficiently complete that all lanes are ready to be opened to traffic. Within ten (10) days of receiving Koch's written notice that the work is Substantially Complete, Aspen shall either acknowledge Substantial Completion in writing or specifY in writing to Koch deficient or unfinished work. Koch shall furnish additional work that may be required and the parties shall thereafter follow the approval sequence above. Failure of Aspen to notifY Koch within seven (7) calendar days of deficient or unfinished work shall be deemed as notification to Koch that Substantial Completion is achieved. Surfacing Index - shall have the meaning provided in Section 8.4(b). ,,-.., u.s. 82 - shall mean United States Highway 82 as may be renamed or re-designated from time to time. 3.0 KOCH'S RESPONSIBILITY Except as otherwise provided herein, should the Pavement fail to meet the Performance Criteria standards described in Section 7.0, Koch shall undertake the cost of providing repair or replacement as provided in this Warranty. 4.0 THE CITY OF ASPEN'S RESPONSIBILITY Aspen shall be responsible for costs associated with utility identification, relocation and protection, and repair and replacement of items which are not part of the Pavement, including without limitation such items as bridge decks, traffic control signs, traffic lights, curbs, gutters, sidewalks, landscaping, shoulder backing and maintenance of pavement markings and markers. If Aspen should obtain any information regarding vehicle loads, such information shall be provided to Koch. Aspen shall be responsible for Emergency Pavement Repairs as provided in Section 8.2 of this Warranty. Aspen shall further be responsible for providing Koch with access to the Pavement during the times that work is scheduled pursuant to Koch's Annual Pavement Maintenance Plan, shall assist Koch in obtaining such permits and licenses necessary to do the work (or when within its authority issue such permits and licenses), and shall place no condition upon Koch's ability to obtain said access, licenses or permits in addition to those provided by law. /"-. 5.0 EXCEPTIONS, EXCLUSIONS & LIMITATIONS KOCH DISCLAIMS ANY WARRANTY NOT EXPRESSLY PROVIDED FOR HEREIN, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND ANY IMPLIED 10 WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER IMPLIED ~. WARRANTIES OF ANY KIND. KOCH ACCEPTS NO LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND INCLUDING WITHOUT LIMITATION THOSE THAT MAY BE ASSOCIATED WITH PAVEMENT FAILURES, DEFECTS OR ANY OTHER INADEQUACY CLAIMED OR PROVED. THIS DISCLAIMER SHALL REMAIN EFFECTIVE REGARDLESS OF WHETHER THE REMEDIES PROVIDED FOR HEREIN ARE DEEMED TO FAIL OF THEIR ESSENTIAL PURPOSE. THE WARRANTY DOES NOT EXTEND TO USERS OF THE PAVEMENT, WHO ARE NOT INTENDED TO BE THIRD PARTY BENEFICIARIES OF THE PROVISIONS SET FORTH HEREIN. KOCH'S TOTAL CUMULATIVE FINANCIAL RESPONSIBILITY TO ASPEN DURING THE LIFE OF THIS WARRANTY SHALL NOT EXCEED ONE MILLION DOLLARS ($1,000,000). The Warranty shall not apply to Pavement Performance Criteria failures caused by anyone or all of the following conditions: ,,-...., Destruction When the Pavement is damaged due to spills of any kind (including chemical, petroleum, solvent and the like), releases (including any contaminants or pollutants), vandalism, maintenance equipment damage, snow/ice removal operations, earth subsidence (including mine subsidence), violations ofload restrictions, or has been cut for utility crossings. Disasters When the Pavement is damaged due to flooding, earthquakes, landslides, lightning, falling rocks, explosions, fires; tornadoes, hurricanes, and all occurrences considered as acts of God. Acts of War When the Pavement is damaged due to an act of war or because of heavy military movements (especially tanks). Included are terrorist attacks, accidental weapon discharges and sabotage. Mobilization When the Pavement is damaged from passage of military equipment, steel track mounted construction equipment or the repeated and continuous passage of Heavy Construction Equipment. Accidents When the Pavement is damaged by vehicular accidents or as a consequence thereof. Other's Work When the Pavement is damaged or overlaidlre-paved by work performed by other than Koch or its agents with the exception of Emergency Pavement Repairs made by Aspen. .~. 11 r-- Certain Base or Sub-base Failure When the Pavement is damaged as a result of base or sub-base failures unless such damage is caused to Pavement areas where base or sub-base stabilization actually performed as a part of Koch's work has failed. For mill and overlay work, (and other work that does not contemplate base or sub-base stabilization), Koch bears no responsibility for damage caused by base or sub-base failures. By way of example and without limitation Koch shall not be responsible for base or sub-base failures caused by water main breaks, inadequate drainage, inadequate base preparation and subsidence. In the event of a dispute, Koch shall have the burden of showing base or sub-base failure. 6.0 WARRANTY DURATION The Warranty term shall commence at Substantial Completion of Koch's work, and shall continue until October 31, 2014, unless sooner terminated under Section 6.1. 6.1 Early Termination. The Warranty shall terminate for all 1999 Aspen Pavement Program Streets effective the beginning of any calendar year during which it is reported that the cumulative Average Annual Daily Truck Traffic ("AADT") as measured on U.S. Highway 82 ("US. 82") for Class 2 and Class 3 Trucks reaches 4,634,000. AADT measurement data shall be obtained by Aspen from traffic collectors at the Castle Creek Bridge, US-82, and computed upon the average of each directional detector. Koch shall be granted the right to inspect such data upon twenty four (24) hours advance notice. (Assuming the Warranty commences January 1, 2000, and assuming truck traffic growth of 3.5% annually, the following table provides an example of truck traffic patterns that would not result in early termination of the Warranty.) ,,-..., ,~ Year Class 2 Class 3 Class 2+3 Cumulative Class 2+3 AADT AADT AADT/year AADT 2000 300 350 237,250 237,000 2001 311 362 245,554 483,000 2002 321 375 254,148 737,000 2003 333 388 263,043 1,000,000 2004 344 402 272,250 1,272,000 2005 256 416 281,779 1,554,000 2006 369 430 291,641 1,846,000 2007 382 445 301,848 2,148,000 2008 395 461 312,413 2,460,000 2009 409 477 323,347 2,783,000 2010 423 494 334,665 3,117,000 2011 438 511 346,378 3,463,000 2012 453 529 358,501 3,822,000 2013 469 547 371,049 4,193,000 2014 486 567 384,035 4,577,000 2015 503 586 397,477 4,974,000 Example: Yearly Truck Traffic at Castle Creek Bridge, U.S. 82 12 t""""'-. 7.0 PAVEMENT SURFACE PERFORMANCE CRITERIA ("Performance Criteria') Koch, at its cost, shall repair any single area of Pavement surface that fails to meet the following Pavement Performance Criteria for cracking, raveling, or potholes. Koch, considering input from the City, shall make the determination as to whether an area is in need of repairs. Upon termination of the Warranty, the Pavement shall be turned over to the City within the Pavement Performance Criteria as provided in Section 7.0 and 7.1. Cracking Pavement areas containing cracking in excess of Yz inch (12.7 mm) wide, regardless oflength, shall be repaired. Raveling Raveling is the wearing away of the Pavement surface caused by the dislodging of aggregate particles and loss of asphalt binder from the Pavement resulting in a rough, pitted surface. If the raveled areas in the Pavement are greater than 50 ft' (4.6 m') and the depth of the pits are greater than Yz inches (12.7 mm) deep, the areas shall be repaired. Potholes Potholes are bowl shaped holes of various sizes in the Pavement. Potholes larger than 2 inches (50 mm) across or 4 inches (100 mm) deep shall be repaired. "-..,, 7.1 Distress Below Surface Performance Criteria If any Block has potholes, cracks, or raveling that fall below the Pavement Performance Criteria listed in Section 7.0, but affect at least 18% ofthe Block, the affected area(s) will be repaired. 8.0 PAVEMENT ASSESSMENT AND PLAN Koch shall assess the condition of the Pavement on a yearly basis and carry out repairs in accord with this Section 8.0. 8.1 Annual Pavement Maintenance Plan Koch shall prepare an Annual Pavement Maintenance Plan which describes Koch's assessment of the Pavement condition, the maintenance activities Koch intends to carry out during the following Paving Season and the scheduled dates for such activities. The Annual Pavement Maintenance Plan shall be submitted to Aspen each October 1, but may be amended the following spring to account for changes necessitated over the winter. After receiving the plan, Aspen may provide input on how the plan can be coordinated to minimize impact on special events planned for the upcoming year. Koch shall make reasonable commercial efforts to accommodate Aspen's requests on scheduling. The first Annual Pavement Maintenance Plan shall be submitted by October 1 of the year following Substantial Completion. ~.. 8.2 Emergency Repairs Emergency Pavement Repairs are immediate Pavement maintenance activities necessary to prevent accidents, damage, or injury to the public. Aspen shall be solely responsible for assessing the need and for making Emergency Pavement Repairs. Koch shall reimburse Aspen for the actual cost of such repairs, provided the actual costs are reasonable and customary for the Aspen market area. When 13 ,-,\ Emergency Pavement Repairs are completed by Aspen, Koch shall as necessary bring the affected area up to the Performance Criteria as a part of its Annual Pavement Maintenance Plan. 8.3 Cost of Repairs Except as otherwise provided herein, Koch shall bear the cost of Pavement repair activities and their implementation. Koch shall have the sole discretion to select the method by which to restore the Pavement to the Performance Criteria. 8.4 Surfacing Index Adjustments (a) Each year during the term of the Warranty, Aspen shall be prepared to pay to Koch (depending upon the level inflation as herein measured) a percentage of Koch's total Repair and Maintenance Expenditures for the 1999 Aspen Pavement Program Streets. The calculation of Aspen's payment is based upon the premise that Koch will not assume inflation risk that exceeds 3.5% per year on a cumulative basis. (b) The amount, if any, that Aspen shall pay to Koch during each year shall be determined by reference to the Colorado Bituminous Surfacing Index ("Surfacing Index") as published or posted by the Federal Highway Administration ("FHWA"). Aspen shall reimburse Koch amounts computed by using the following formula incorporating the Surfacing Index: ,.-.... { hs} P~E 1-- IAVG Where: p E IAVG 13.5 = Reimbursement by Aspen to Koch = Repair and Maintenance expenditures for any year = Surfacing Index for the year in which the Repair and Maintenance expenditure was made, taken from the FHW A's publications. = Calculated Index - Colorado Index base value, 1998, escalated at 3.5 % inflation per year during which the Repair and Maintenance expenditures are made. (c) The numerator of the formula designated in paragraph (b) above (hereinafter "Calculated Index") shall be determined as the 1998 base value for the Surfacing Index, escalated at an annual rate of 3 .5% from December 31, 1998 to the particular December 31 of the year during which a Repair and Maintenance expenditure is made. The Calculated Index value for every year for the term of the Warranty is set forth on "Attachment 2" [to be provided] and incorporated herein. (d) The denominator of the formula designated in paragraph (b) above, the "Surfacing Index" shall be computed for the year in which the expenditure was made by averaging the most recently published Surfacing Index figures for the past three (3) quarters. If at any time during the term of the Warranty the Surfacing Index should cease to be published, another suitable index shall be agreed upon by the parties, and if no agreement is reached the matter shall be referred to conflict resolution under Section .;----, 9.0 of this Warranty. 14 . -----. (e) Aspen shall have the obligation to pay any portion of Repair and Maintenance Expenditures for any applicable year in which the Surfacing Index exceeds the Calculated Index. Koch shall have no obligation in any year to refund payments made by Aspen under this Section 8.0 during prior years. (f) Any request for reimbursement for Repair and Maintenance Expenditures shall be invoiced to Aspen no later than the June 30 following the year for which the adjustment is being made. The non- disputed portions of all Surfacing Index adjustment payments shall be paid within 45 days of invoice. Koch shall be entitled to interest of 1.5% per month on all past due balances. 9.0 CONFLICT RESOLUTION As a pre-condition to filing any lawsuit or other type of judicial action, Koch and Aspen are hereby compelled to follow the conflict resolution procedures outlined under this Section 9.0. The party which has a grievance shall communicate the grievance in writing to the other party, and the receiving party shall provide its written response within ten (10) days, unless the tenth day falls upon a weekend or holiday in which case the period is extended to the next regular business day. If the party which has the grievance determines that the written response of the opposing party does not resolve the conflict to its satisfaction, it shall call a mandatory partnering meeting providing a minimum of seven (7) days advance notice. The parties shall discuss their differences at the partnering meeting to be held in Aspen, Colorado. Each party shall be entitled to have as many representatives at the meeting as it deems necessary. If the parties cannot resolve their differences at the partnering meeting, either party shall be free to pursue alternative remedies. .r--\ 10.0 SEVERABILITY If any part of this limited Warranty shall be determined to be invalid then such portion shall be deemed severed from this Warranty and the remaining terms, exclusions and limitations shall apply. 11.0 CHOICE OF LAW, JURISDICTION This Warranty shall be governed and construed according to the laws of the State of .Colorado, excluding that State's choice of law provisions. Jurisdiction shall vest solely within the state or Federal courts of Colorado, as applicable, other than those located in Pitkin County. 12.0 HEADINGS The headings in this Warranty are inserted for convenience of reference only and shall not affect the construction of this Warranty. 13.0 FORCE MAJEURE Koch shall not be considered in default in the perfonnance of its obligations, or any of them, under the Warranty, except the obligation to make payment or reimbursement when due and in accordance with the Warranty, to the extent that performance of such obligations, or any of them, is prevented, hindered or delayed by Force Majeure. If Koch shall claim an inability to perform as a result of Force Majeure, it shall, upon the occurrence thereof, orally advise Aspen of the nature, date of inception and expected duration of the Force Majeure and the extent to which it will prevent Koch from performing its obligations hereunder. .----- 15 ~ 14.0 EARLY TERMINATION OF CONSTRUCTION AGREEMENT Koch and Aspen have entered into that certain <agreement for construction-fill in title> dated_, 1999, for the rehabilitation of the 1999 Aspen Paving Program Streets. If said agreement is terminated prior to completion of Koch's work, regardless of the reason, the provisions of this Warranty shall commence and continue in effect only with regard to those individual streets identified on "Attachment 1" that have reached Substantial Completion by the date of said termination, provided that all sums due and owing for work completed by Koch have been paid by Aspen. Koch shall have no warranty obligation with respect to any listed street that has not reached Substantial Completion. Koch's total cumulative financial responsibility limit of liability provided in Section 5.0, One Million Dollars ($1,000,000.00), shall be reduced by the percentage of the work that has not reached Substantial Completion. The calculation shall be made on the basis of lane miles Substantially Complete at the time oftermination as compared lane miles not Substantially Complete. 15.0 ASSUMPTION This Warranty is premised upon the underlying assumption that Koch will be able to make Pavement repairs with asphaltic based products, and that no law, rule, regulation or ordinance will be enacted during the Warranty prohibiting the same. Should said underlying premises change, the parties recognize Koch's right to seek rescission, redetermination or other equitable remedies. CITY OF ASPEN: By: ~ il/J-J Date: Name: ~ 'Barc.u,d=:. Title: u-ht f-II8~ 3/Ge./CD .~. KOCHMATERIALSCOMPANY:[> ~ By: r1iW l .klb Name: (1M!"" 7:>EiVI~'e;<:,. Title: V ('I:: :P~e:sI\"i'1V T Date: Cb 1/) Wit:; ~.. 16 3-16-00; 2: 1 OPM; ;1234567 # 2/ 2 ""'---..; Koch Materials Company Performance Roads'" Change Order Form Page 1 of 1 Date: November g. 1999 Contract: Koch Materials Company Project NO.1 0029 Change Order Number: City of Aspen #1 Item Item of Work Quantity Unit Price Amount 1 Reduce Grading (1) $130.00 ($) 30.00) 2 Reduce Asphalt Repairs (1) $67.00 ($67.00) 3 Reduce Crack Sealing (1) $857.00 ($857.00) 4 Reduce ManholeNalve AdJstmnts (1) $285.00 ($285.00) 5 Reduce Asphait Reconstruction (1) $67,156.00 ($67.156.00) 6 Reduce Paving (1) $133,559.00 ($133,559.00) 7 Reduce Traffic Control (1) $13,270.00 ($13.270.00) These reductions were caused by the deletions of several streets (as Itemized in the attached sheet). Chal)ge Order Number 1 Total: -$215,324.00 Initial Contract Amount J. $2,748,567.00 Change Order Number 1 - , -$215.324.00 Revised Contract Amount . $2,533,243.00 Approval: This is to affirm that the parties have inspected this change in plans and constructiOn and hereby agree to the quantities. unit price and amounts shown. This change order is made In accord with Article 4 80 5 in the Contreet for Construction between Koch Materials Company and The City of Aspen. . City of Aspen Title: KOCH MATERIALS.COMPANY By: ~1J.n ~ O. ZJ.Jo.l'j;;."') Internal Review Name: Bruce Walters J. Geer M. Hines B. Heitmann Titie: Regional General Manager Copies to: City of Aspen - Jack Reid City of Aspen - Tabatha Miller Koch Materials Company - Bruce Walters Koch Materials Company - Ronald Hull, Attorney Koch Materials Company - John Exline \