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ST0102-AG021008AGENDA REQUEST FORM T H E · C i T Y · 0 I/ COFFELL DEPT: Engineering DATE: October 8, 2002 ITEM #: 8/F ITEM CAPTION: Consider approval of an Assignment and Assumption of an Engineering Contract between the City of Coppell, Duke Realty Services Limited Partnership, Texas Dugan Limited Parmership and Pacheco Koch Consulting Engineers; and authorizing the City Manager to sign. APPROVED BY ~aotion to Approve CITY COUNCIL ~ . =~M - Tunnell ON ABOVE DATE 3a~,~s - Raines GOAL(S): ~F~ ~ I Stover absent EXECUTIVE SUMMARY: Approval of this item will allow the design of Ruby Road to continue so that Ruby Road can be bid for construction by October 2002, with construction beginning in early 2003. Staff will be available to answer any questions at the Council meeting. FINANCIAL COMMENTS: Funds for Ruby Road has been allocated in the Street CIP and Water CIP accounts. Agenda Request Form - Revised 09/02 FIN. REVIEW: CM~VIEW: }/~ Document Name: ~ng2-1AR MEMORANDUM FROM THE DEPARTMENT OF ENGINEERING To: From: Mayor and City Council Kenneth M. Griffin, P.E., Dir. of Engineering/Public Works Date: RE: October 8, 2002 Consider approval of an Assignment and Assumption of an Engineering Contract between the City of Coppell, Duke Realty Services Limited Partnership, Texas Dugan Limited Partnership and Pacheco Koch Consulting Engineers; and authorizing the City Manager to sign. For some time now the City of Coppell has been working with representatives of Duke Realty Services to facilitate the reconstruction of Ruby Road. The interest to Duke Realty Services in the reconstruction of Ruby Road is to better market the northern portion of their property and to provide better and safer access to the property. The interest on the part of the City of Coppell in the reconstruction of Ruby Road is to eliminate the dangerous curve at the west end and to facilitate a safer route to Wagon Wheel Park. During discussions, it was decided that to get an accurate understanding of the cost involved, a design should be initiated. On May 14, 2002, the City agreed to participate in the design of Ruby Road in an amount equal to approximately $38,000. Since that time, numerous agreements were started and revised to better determine how the City of Coppell could work jointly with Duke Realty Services to facilitate the reconstruction of Ruby Road. Duke Realty was willing to participate in the reconstruction of Ruby Road financially, but was also interested in acquiring the irregularly shaped property and the abandoned right-of-way that would be on the south side of the realigned Ruby Road and isolated from the Heatley-Moist tract. Each scenario discussed ran into legal problems on how to best bring about the reconstruction of Ruby Road. The original concept was for Duke Realty to facilitate the design of the project, hire a contractor to construct the road and manage the construction of the road for a fee. The City would just contribute dollars to the project. However, that concept did not meet state law requirements for sealed bids of public projects. After much discussion, it was finally decided that the best approach to the reconstruction of Ruby Road would be for Duke Realty to purchase the land that would be isolated from the Heatley-Moist tract by the realignment of Ruby Road and for the City to take over the design and construction of Ruby Road. The financial contribution by Duke Realty would be the purchase price of the land on the south side of the realigned Ruby Road. On September 24, 2002 City Council approved the abandonment of the right-of-way and the sell of the irregularly shaped piece of property to Duke Realty in the amount of $253~000. That $253,000 will now be assigned to the CIP funds to help offset the cost of the reconstruction of Ruby Road. Because Duke Realty is now stepping out of the design and construction of the project, the City of Coppell needs to pick up the design contract and proceed with the bidding process of Ruby Road for construction. "CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN" During the course of the past few months in trying to ascertain the correct and legal way to proceed with the reconstruction of Ruby Road, a substantial amount of design work was performed on the project. The project is now approximately 80% to 85% designed and the City of Coppell is anticipating putting the project out to bid on October 11, 2002. Because the City of Coppell is now the lead on this project we need to assume all responsibilities for the design and construction of the project. To that end, the City of Coppell needs to assume the current engineering contract that was originally executed between Duke Realty Services Limited Partnership and Pacheco Koch Consulting Engineers. The design contract between those parties was in an amount of $61,000. To date, Duke Realty has paid $46,047.70 to Pacheco Koch for the design. We were invoiced once for our portion of the agreed upon design; however, because of the ongoing discussions I chose not to process that invoice for payment. Instead, discussions were continued with Duke Realty on how to go about reconstructing Ruby Road. Therefore, the City of Coppell has yet to contribute financially to the design of Ruby Road. This agenda item is brought forth so that the City of Coppell can assume the financial obligations of the design contract for Ruby Road and reimburse Duke Realty for the amounts previously expended for the design of Ruby Road. The estimated cost of the paving and drainage is $700,000. However, in addition to that, the City of Coppell has an opportunity to construct a missing link of our water system. With the reconstruction of Ruby Road, we will be constructing a 12" waterline from Coppell Road to Freeport Parkway. This will tie into a newly constructed 12" water line in Freeport from Bethel to Creekview and a 12" waterline in Creekview from Royal to Freeport. We are also attempting to correct a sewer problem in the area by relaying a portion of the old sewer line in Ruby Road. The additional cost of the water and sewer improvements is estimated at about $150~000. Therefore, the total cost is estimated at $850,000. One major benefit of installing the waterline is that we will be installing several fire hydrants along the north side adjacent to the mobile home park. That mobile home park fronts onto Ruby Road and it is a private mobile home park with private utilities and streets and as such does not have fire protection within the mobile home park. The installation of the 12" waterline with fire hydrants along the north side of Ruby Road will provide some level of fire protection for the mobile home park. Therefore, the total anticipated construction cost is $850,000, which includes both the paving and drainage and the addition of the water and sewer improvements. With the design cost, the entire project cost is about $910,000. We currently have $500,000 in Street CIP funds allocated toward Ruby Road. In addition to that we will have the $253,000 from the sale of the irregular shaped property to Duke Realty. Also, $150,000 has been set aside in Water and Sewer funds to construct the water and sewer lines in Ruby Road. Staff recommends approval of the Assignment and Assumption of an Engineering Contract from Duke Realty Services Limited Partnership to the City of Coppell and authorizing the City Manager to sign. Staff will be available to answer any questions at the Council meeting. "CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN" ASSIGNMENT AND ASSUMPTION OF ENGINEERING CONTRACT TInS ASSIGNMENT AND ASSUMPTION OF ENGINEERING CONTRACT (this "Assignment") is made and entered into as of this [ 5'day of 0(L,~L~7/~'E~t~ , 2002, by and between DUKE REALTY SERVlCES LIMITED PARTNERSHIP, an Indiana limited partnership CDRLP") and TEXAS DUGAN LIMITED PARTNERSHIP, a Delaware limited partnership CTDLP'') (hereinafter collectively referred to as "Assignor"), and the CITY OF COPPELL, TEXAS, a Home Rule City (hereinafter referred to as "Assignee"). WITNESSET~: WHEREAS, DRLP and Pacheco Koch Consulting Engineers ("Engineer") entered into that certain Agreement between Owner and Engineer, dated as of March 4, 2002, as amended by Change Orders dated May 17, 2002 and July 15, 2002 (hereinafter collectively referred to as the "Engineering Contract") for surveying and civil engineering services more particularly described in the Engineering Contract for that certain project identified therein as the Ruby Road Realignment, Coppell TX 75019 (the "Project"). Under the Engineering Contract, Assignor served a dual capacity as (i) the agent for the Owner, TDLP, and (ii) the "Construction Manager"; WHEREAS, subsequent to the execution of the Engineering Contract, it was determined that Assignee would oversee the work to be performed in connection with the Project and therefore assume all of the responsibilities of"Owner" and "Construction Manager" under the Engineering Contract; WHEREAS, TDLP is a party to this Assignment to acknowledge its consent to the assignment of all such responsibilities of "Owner" in and to the Engineering Contract; WHEREAS, Assignor and Assignee have agreed that Assignor shall transfer and assign to Assignee all right, title and interest of Assignor in and to the Engineering Contract; and WHEREAS, Assignor and Assignee have further agreed that Assignee shall expressly assume all of the obligations of Assignor under the Engineering Contract. NOW, THEREFORE, for and in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each party hereto, Assignor and Assignee hereby agree as follows: 1. Transfer and Assignment. Assignor hereby transfers and assigns to Assignee, its successors and assigns, all right, title and interest of Assignor in, to and under the Engineering Contract, dated March 4, 2002, by and between Duke Realty Services L.P. and Pacheco Koch Consulting Engineer, herein after called "Contract". 2. Assumption of Obligations. Assignee hereby assumes and agrees to observe and perform all of the obligations and duties of Assignor under the Engineering Contract arising from and after, but not before, the date of this Assignment; and, Assignor shall upon execution deliver to Assignee all designs, drawings, specifications, technical data, and other instruments produced by the Engineer resulting from the "Contract". 1 \\eng_court~users\p~rocker~projects~street~stO 1-02mby~engineering contract assignment.doc 3. Payments to Engineer. Assignee hereby acknowledges that, as of the date of this Assignment, Assignor has made payments due Engineer under the Engineering Contract totaling $46,047.70 (the "Payments"). Copies of the relevant invoices are attached hereto as Exhibit A and incorporated herein by this reference. Upon execution of this Assignment by Assignee, Assignee shall refund to TDLP the full amount of the Payments. 4. Governing Law. This Assignment shall be governed by and construed in accordance with the intemal laws of the State of Texas, without reference to the conflicts of laws or choice of law provisions thereof. 5. Binding Effect. This Assignment shall be binding upon and shall inure to the benefit of the parties hereto and their respective administrators, legal representatives, successors and assigns. 6. Counterparts. This Assignment may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall constitute but one and the same instrument. [lq WITNESS WHEREOF, Assignor and Assignee have each caused this Assignment to be executed by its duly authorized signatory as of the day and year first above written. ASSIGNOR: DUKE REALTY SERVICES LIMITED PARTNERSHIP, an Indiana limited partnership By: DUKE REALTY CORPORATION, an Indiana corporation, sole General Partner By: J4freyX~l~: ~urner ~,e~/ic e President SIGNATURES CONTINUED ON FOLLOWING PAGE 2 \~enLcourt~users~ocker~orojectskstreetLstO 1-02mby~engineering contract assignment, doc ASSIGNOR (cont'd): TEXAS DUGAN LIMITED PARTNERSHIP, a Delaware limited partnership By: By: By: By: DUGAN GENERAL PARTNER LLC, a Delaware limited liability company, its general partner DUGAN TEXAS LLC, a Delaware limited liability company, its sole member DUKE REALTY LIMITED PARTNERSHIP, an Indiana limited parmership, its Manager DUKE REALTY CORPORATION, an Indiana corporation, sole General Partner J~fre~ I~.' Turner ~en36r Vice President SIGNATURES CONTINUED ON FOLLOWING PAGE 3 \~.ag_court~.qers~.ockeaSprojeetsX~stree0st01.02ruby~engineering contract assignment.doc Approved as to Form: Robert E. Hager, City Atl~m~y ASSIGNEE: C~TV o~c,~. !'~L,., teXAS By: ij~~~i~ M. anager ArteC-/4~/a Libb~ Ball, C~Sdc~'~ta-r~- 4 \~nLcoun~a~sers~ocrocke~proj~ctsLst~tLsWl-O2mby~engineering conlract assignment, doc ACKNOWLEDGEMENT OF ENGINEER The undersigned Engineer hereby joins in the execution of this Assignment of Engineer's Contract to acknowledge the assignment of the Engineering Contract by Assignor to Assignee. From and after the date of the Assignment, Engineer agrees to look solely to Assignee for the performance of all obligations under the Engineering Contract, including, without limitation, those payment obligations of Owner pursuant to Article 3 of the Engineering Contract. Engineer further agrees, upon request from Assignee, to issue to Assignee such evidence of insurance as required under the Engineering Contract or as required by Assignee. Dated this IR ~ay of c~ 5- ~ ~3 * r~ ., 2002. ENGINEER:  I!E~OCH CONSULTING ENGINEERS Tit~ \[, *. 5 \~enLcoUrt~sers~xocker~projeetskstreet~tOl-O2mby~engineering contract ass~ nment.doc D' "ke CONSTRUCTION May 14, 2002 Mr. Jim Witt, City Manager City of Coppell 255 Parkway Boulevard Coppell, TX 75019 Re: Ruby Road Realignment (the "Project") Surveying & Civil Engineering Design Cost Sharing Agreement Between the City of Copper (the "City") and Texas Dugan Limited Partnership ("Duke") Dear Jim: We at Duke have enjoyed the discussions we have held regarding Ruby Road over the last few months, including our most recent one on May 7, 2002, in which Jeff Turner and I met with Ken Griffin and you to discuss our progress on the Project. That progress now includes the completion of surveying, preliminary engineering, and the solicitation of preliminary contractor pricing. We collectively agreed during this last meeting to continue moving forward together with the Project, and we acknowledged that the next step is to complete a set of final civil engineering plans for it. Furthermore, we agreed to share the surveying and civil engineering costs for the Project, which includes costs to complete the final engineering plans and the already complete surveying and preliminary engineering work, on a 64% / 36% basis, with the City paying the 64% share. These percentages were determined for the Project during another meeting we held on December 6, 2001. Duke currently has a contract in effect with Pacheco Koch Consulting Engineers, Inc., CPacheco Koch") for the surveying and preliminary engineering work, and we plan to add final engineering plans to the scope of this contract. Attached for your review is a copy of the current contract and a preliminary change order that will modify its scope as noted. Provided that they receive timely responses from the City during the plan review and comment period after they make plan submittals to the City, Pacheco Koch believes they can complete final plans by June 21, 2002. Duke will work to coordinate this design effort, obtain additional contractor pricing, and to create a development agreement for the Project between Duke and the City. Our mutual goal will be to present this Development Agreement to the Coppell City Council for approval in July 2002, after which point, we can prc~eed with construction of the Project. The total estimated cost for Pacheco Koch to perform die surveying and civil engineering design work for the Project is $59.000. As described in the contract, this sum may vary according to actual costs for reimbursable items, hourly tasks, and sales tax due for certain surveying tasks. Final billing from Duke to the City will be based on the total actual surveying and design costs. Based on the percentages described above and the estimated amount of $59,000, the City's share will be approximately $37,760, and Duke's share will be about $21,240. Duke has already paid $11,164 for the surveying and preliminary engineering tasks, so this amount will be deducted from its share. In accordance with our agreement, Duke will send the City an invoice for 64% of the design costs it has already incurred in its efforts to complete the surveying and preliminary design work, and we will then proceed to send additional invoices for 64% of the remaining design costs as we receive pay requests from Pacheco K~h for the balance of the work described in our contract with them. 5495 Belt L;ne Road Atlanta Dallas Orlando Suite 360 Chicago Indianapolis Raleigh Dallas, T× 75254 Cincinnati Minnea!oolis St. Louis g72.361.6700 Cleveland Nashville Tampa www. cluRerealty, com Columbus Mr. Jim Witt May 14, 2002 Page Two Please sign the acknowledgement below in order to indicate your agreement with and acceptance of the terms of this letter. Duke is excited about the opportunity to move forward with the Project, and we look forward to working with the City toward its completion in the next few months. If you have any questions, please do not hesitate to contact me at (972) 361-6714. Sincerely, TEXAS DUGAN LIMITED PARTNERSHIP BY: Duke Realty Services, L.P., Its agent BY: Duke Services, Inc., Its general partner Brook Barefoot, Development Sffrvices Manager ri. IrS/2/a- l~nr Ol: ,/,~./~ ~./ BY: ~ Attach~nents ,2002.