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Resolution No. 91-46 CITY OF TIGARD, OREGON RESOLUTION NO. 91- t A RESOLUTION AUTHORIZING THE CITY ADMINISTRATOR TO ENTER INTO A COOPERATIVEGREEM..�''..NiT BETWEEN THE CITY OF TIGARD, THE CITY OF BEAVERTON AND NESBITT PARTNERS PORTLAND VENTURE LTD, A CALSFORNIA LIMITED PARTNERSHIP, IN ORDER TO CONSTRUCT AND FINANCE A REPLACEMENT SEWER LINE. WHEREAS the owners of the Embassy Suites Hotel, Nesbitt Partners Portland Venture LLd_, a California Limited Partnership (here after referred to as Nesbitt) are desirous of expanding the Embassy Suites Hotel, which is located within the City of Tigard; and WHEREAS it has been determined that the capacity of a portion of the sewer line section which would serve this hotel expansion (i.e sections B through J of the SPRR Trunk line) is of inadequate capacity, and must be replaced with a larger capacity sewer line; and WHEREAS that sewer line section which needs to be replaced is part of the City of Beaverton's sewerage system; and WHEREAS requiring Nesbitt to replace the entire section of` sewer line would be substantially more than Nesbitt's fair share, and would jeopardize the expansion of the hotel; and WHEREAS the City of Beaverton, the City of Tigard, and Nesbitt would all derive benefit from a construction project that would replace the necessary sections of the SPRR Trunk sewer line; and WHEREAS a proposed agreement has been reached between representatives of the three parties involved which specifies an arrangement under which the design, construction and financing of the sewer line replacement project would be accomplished; and WHEREAS the proposed agreement includes a financial contribution by the City of Tigard towards the construction project, as well as an intergovernmental loan to the City of Beaverton, and therefore requires that the City Council of the City of Tigard authorize the City Administrator to execute said proposed agreement; and WHEREAS there is a public need and benefit to entering into said agreement; now RESOLUTION NO. 91-Uts Page 1 i ��^--�•---,moi®a:�.--�'� � Kim NOW, THEREFORE,', BE IT RESOLVED by the Tigard City Council that: The City Administrator is hereby authorized to enter into a cooperative agreement with the City of Beaverton and Nesbitt Partners Portland Ventures Ltd., said agreement being attached to this Resolution as Exhibit 'A'. PASSED: This day of ''�-{=�� , 19 J ]a'-.lr7 E- City of Tigard ATTEST: i L-f� City Recorder - City of Tigard RESOLUTION NO. 91- Page 2 3 COOPERATIVE INTERGOVERNMENTAL AGREEMENT This agreement is made and entered into by and between the CITY ITY OF BEAVERTON, an Oregon municipal corporation ("Beaverton"and the CITT OF TIGARD, an Oregon municipal corporation ("Tigard") , PARTNERS PORTLAND VENTURE I,TD., a California Limited Partnership ("Nesbitt") WITNESSETH RECITALS: Beaverton and Tigard are desirous of a contractual relationship with Nesbitt whereby Nesbitt would be responsible for the design and construction of a sewer, line, to replace the SPRR Trunk sewer line sections B through J to servea the assy land Suites approval expansion located in Tigard, tate subject known as SDR 90-0025. Beaverton will benefit from the construction project as the line that will be replaced is in Beaverton and will increase the capacity of the replacement sewer line. Beaverton will further benefit by being advanced funds from Tigard for the payment of Beaverton's share of construction. Beaverton will reimburse Tigard fully within two years of the advance of funds. Nesbitt will benefit in that design and reconstructrovalons of the of the sewer line will meet a condition of the development app hotel expansion. Tigard will benefit from the development of the hotel expansion within Tigard's city limits. Nesbitt will benefit by being able to proceed with the expansion of the hotel in a timely manner with financial assistance from the two cities. Beaverton and-Tigard acknowledge that they have the authority to execute this Intergovernmental Cooperative Agreement pursuant to ORS 190.003 to 190.030. NOW, THEREFORE, the premises being generally as stated in the foregoing recital, it is agreed by and between the parties hereto as follows: 1) Effective Date. This agreement shall take effect on the data it is executed by all parties. It will remain in effect until Beaverton has fully repaid the City of Tigard. 2) Nesbitt es onsibilities. Nesbitt will design the SPRR Trunk sewer line replacement and construct the line in accordance with approved plans. Nesbitt agrees to pay all costs of construction and then request payment from Tigard for Beaverton and Tigard's shares. Nesbitt agrees to contribute $28,000 of its own funds, pay the Unified Sewerage Agency share of theconstructir charge oTigard the SPRR(whichwill sewer line and rd the payment to BSA)A) , 1 - COOPERATIVE INTERGOVERNMENTAL AGREEMENT dedicate the sewer line to Beaverton upon completion and acceptance. Nesbitt will pay the prevailing wage required for this work and will certify its payroll to the Oregon Bureau of Labor and Industries. Nesbitt will account for all costs re3ated to engineering and construction of the sewer line including but not limited to design fees, insurance, bonds, and attorney's fees and provide an accounting to both cities as requested by the cities in a form requested by Beaverton and Tigard. Nesbitt's books and records related to this project shall be available to either city upon request for a period of two years following completion of the line. Nesbitt agrees that any cost savings and overruns shall be identified as soon as feasible and shall be shared with Beaverton and Tigard according to the percentage of participation of the parties shown in section five. Beaverton and Tigard shall have the right to approve or disapprove any change orders which could result in cost savings or overruns, such approval shall not be unreasonably withheld. Nesbitt assumes all risks related to construction of the sewer line. If any delays in construction or sewer line inspection/acceptance z)ccur which delay T.igard's issuance of an occupancy permit for the hotel expansion, Nesbitt agrees to waive the right to sue either city unless such delays are attributable to a wrongful or unreasonable act of either city. Nesbitt is required to post a bond with the City of Beaverton for construction of the SPRR Trunk Sewer line. Nesbitt is responsible for obtaining all permits from Beaverton, Tigard, Oregon Division of State Lands, Southern Pacific Railroad, and the Oregon Department of Transportation. Nesbitt holds Beaverton and Tigard harmless from and indemnifies both cities for any failure by Nesbitt to pay the prevailing wage or certify its payroll to the Oregon Bureau of Labor and Industries. 3) Beaverton Responsibilities. Beaverton agrees to finance a portion of the cost of replacing the SPRR Trunk sewer line sections B through J in the amount of approximately $140,000. Beaverton shall reimburse Tigard by forwarding to Tigard $40,000 within thirty (30) days of Tigard advancing $40,000 to Nesbitt. Beaverton is further responsible for reimbursing Tigard in the amount of approximately $100,000, along with interest, as described in section 6 of this Agreement in exchange for Tigard advancing said amount to Nesbitt to serve as the remainder of Beaverton's share. In addition, Beaverton will be responsible for the following: a) Performing all plan reviews and inspections of the sewer line as it would any private development that eventually becomes the property of Beaverton. Beaverton will accept the line upon completion according to approved plans 2 - COOPERATIVE INTERGOVERNMENTAL AGREEMENT r i �sw evr ami®® V following standard acceptance standards and procedures published as City of Beaverton public Works Department Engineering Design Manual and Standard Drawings, adopted July 24, 1989 b) Exerting its powers of condemnation to acquire any easement required to further the replacement of the sewer line. All costs related to condemnation including Beaverton's reasonable attorney fees, and any attorney or other fees and costs related to condemnation shall be included as project costs. Beaverton will engage in condemnation only if Nesbitt makes a reasonable offer to acquire the easement and Nesbitt and the property owner fail to agree on a reasonable price after good faith negotiations. If this occurs, Nesbitt will contact Beaverton's City Attorney who will recommend to Beaverton's City Council that powers of condemnation be used. Beaverton will follow its usual condemnation process involving actions for immediate possession. 4) Tigard Responsibilities. Tigard agrees to Issue building permits to Nesbitt but withhold permanent occupancy permits for the hotel expansion until the SPRR Trunk sewer line is complete and accepted by Beaverton. Tigard agrees to waive the City's share of sewer systems development charges (SDC) totaling approximately $18,000. Nesbitt is responsible for paying the Unified Sewage Agency (USA) share of the sewer charge to the City of Tigard. Tigard will forward the payment to USA. Tigard will pay $10,000 as additional contribution to the project. In addition, Tigard agrees to advance Beaverton approximately $140,000 towards the construction of the sewer line consistent with the terms of sections 2 and 6 of this agreement. Payment shall be made directly to Nesbitt on behalf of Tigard and Beaverton in a lump sum upon receipt of a request for disbursement after the line is constructed .by Nesbitt, accepted by Beaverton and after Tigard reviews and accepts receipts and documentation substantiating the actual cost of the project. Nesbitt shall not be eligible for interest for any funds it advances to the project. 5) Cost Share. The estimated total cost of the project to replace the SPRR Trunk sewer line is $178,000 allocated as follows: $ Contribution Beaverton $140,000 78.65 Tigard $ 10,000 5-62 Nesbitt $ 28,000 15.73 Any cost savings or overruns will be allocated to the parties on the same basis as in the original cost share above. 3 - COOPERATIVE INTERGo,,7ERNME:NTAI, AGREEMENT 6) Payback Agreement. In addition to repaying Tigard in the amount of $40,000 as discussed in Section 3, Beaverton agrees to repay the approximately $100,000 advanced by Tigard over a two-year period. Payment will be made within 24 months of the date funds are advanced by Tigard. Beaverton will pay back the principal and interest in no more than four equal payments due either on July 1, 1992, January 1, 1993, July 1, 1993 and January 1, 1994 or 6, 12, IS and 24 months from the date funds are advanced. Beaverton shall select either payment option. If Beaverton repays Tigard the entire $100,000 within thirty (30) days of Tigard advancing funds to Nesbitt and submitting a billing to Beaverton, no interest payment shall be due. If Beaverton pays a lesser amount within thirty (30) days of billing, interest shall accrue on the unpaid balance from the date funds are advanced. These payback provisions are subject to action of the Beaverton City Council to appropriate the necessary funds in succeleding fiscal Prior to the expiration of the agreement, Beaverton may pay the total amount dupe Tigard at any time with no prepayment penalty. Interest shall be at the average rate earned by the Local Government Investment Pool for each six month period. Interest will accrue as of the date Tigard advances funds. 7) Indemnity. Each party agrees to indemnify and protect the other parties from claims and causes of action arising from their negligence and their performance of their respective obligations under the terms of this agreement with the exception that Nesbitt shall be fully responsible Lor any delay in occupancy of the hotel expansion area. Except for maintenance responsibility, which will terminate at the end of one year as referenced in the Engineering and Design Manual. Nesbitt's liability shall terminate with Beaverton's acceptance. 8) Amendment Provisions. The terms of this agreement may be amended by mutual agreement of the parties. Any amendments shall be in writing and shall refer specifically to this agreement, and shall be executed by the parties. 9) Lawsuits. Any lawsuit or action to enforce this agreement must be brought in the Oregon state courts for Washington County. Oregon law shall govern in any such lawsuit or action. 4 - COOPERATIVE INTERGOVERNMENTAL AGREEMENT 10) Written Notice and Addresses. All written notices required under this agreement will be sent as follows: BEAVERTON: Linda Davis, Community Development Director City of Beaverton 4755 S.W. Griffith Dr. P.O. Box 4755 Beaverton, OR 97076 TIGARD: Edward Murphy, Community Development Director City of Tigard 13125 S.W. Hall Blvd. P.O. Box 23397 Tigard, OR 97223 NESBITT: J. Stuart Wilson, Project Manager Nesbitt Partners Portland Venture Ltd. c/o Windsor Capital Group 7222 Commerce Center Dr. Suite 245 Colorado Springs,CO 80919 IN WITNESS WHEREOF, the parties have set their hands and affixed their seals as of the date and year herein above written. CITY OF BEAVERTON, by and through. its City Officials By: Mayor CITY OF by and through its Ci Of icials 7 By Mayor NESBITT PARTNERS PORTLAND VENTURE LTD. By: Partner 5 - COOPERATIVE INTERGOVERNMENTAL AGREEMENT