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Home My WebLink About2008.08.19_OPWA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY TYPE OF MEETING: Regular DATE: August 19, 2008 TIME: 6:30 p.m. PLACE: Council Chambers, Old Central Building 109 N. Birch Notice and agenda filed in the office of the City Clerk and posted at City Hall at 5:00 p.m. on Friday, August 15, 2008. Ju Uinn M. Stevens, Deputy City Clerk AGENDA 1. Call to Order Chairman Stephen Cataudella 2. Flag Salute 3. Roll Call 4. Consideration and appropriate action relating to a request for approval of the Consent Agenda. All matters listed under "Consent" are considered by the Trustees to be routine and will be enacted by one motion. Any Trustee may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable. A. Approval of the Minutes of the August 5, 2008 Regular Meeting. Attachment #4 -A B. Approval of Claims. Attachment #4 -B S: \Agendas \OP W AM08 \0819, doc Owasso Public Works Authority August 19, 2008 Page 2 C. Acknowledgement of receiving the monthly FY 2008 -2009 budget status report. Attachment # 4 -C D. Approval of the Certification of Completion and Distribution of the 2008 Annual Water Quality Report and authorization for the Chairman to execute the necessary documentation. Attachment # 4 -D 5. Consideration and appropriate action relating to a request for Trustee approval of an amendment to the Agreement for Engineering Services with Greely & Hansen for the Wastewater Treatment Plant Expansion and 117th Street Pump Station Upgrade, and authorization for the Chairman to execute the amended agreement. Mr. Stevens Attachment # 5 Staff will recommend Trustee approval of an amendment to the Agreement for Engineerin.* Services with Greely & Hansen for the Wastewater Treatment Plant Expansion and 1171 Street Pump Station Upgrade to include the design of the E. 76th Street Sanitary Sewer Interceptor Project in the amount of $358,000; and authorization for the Chairman to execute the amended agreement. 6. Consideration and appropriate action relating to a request for Trustee approval of a Development Agreement among the OPWA, Morrow Investment Capital, LLC and Morrow Place Investment Group, LLC for limited purposes set forth in the Agreement and authorization for the Chairman to execute said agreement. Ms. Lombardi Attachment # 6 Staff will recommend Trustee approval of the Development Agreement among the OPWA, Morrow Investment Capital, LLC and Morrow Place Investment Group, LLC for the construction of street and storm sewer infrastructure improvements for which Morrow will be entitled to reimbursement; and authorization for the Chairman to execute said agreement. 7. Report from OPWA Manager. S:Agendas \OP W A \2008 \0819.doc Owasso Public Works Authority August 19, 2008 Page 3 8. Report from OPWA Attorney. 9. New Business. (New Business is any item of business which could not have been foreseen at the time of posting of the agenda.) 10. Adjournment. S'. \Agendas \OP W A \2008 \0819.doc OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, August 5, 2008 The Owasso Public Works Authority met in regular session on Tuesday, August 5, 2008 in the Council Chambers at Old Central per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 5:00 p.m. on Friday, August 1, 2008. ITEM 1. CALL TO ORDER Chairman Cataudella called the meeting to order at 6:44 p.m. ITEM 2. ROLL CALL PRESENT Steve Cataudella, Chairman Doug Bonebrake, Trustee Wayne Guevara, Trustee Jon Sinex, Trustee A quorum was declared present. STAFF Rodney Ray, Authority Manager Julie Lombardi, Authority Attorney ABSENT D.J. Gall, Vice Chair ITEM 3. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR TRUSTEE APPROVAL OF THE CONSENT AGENDA A. Approval of the Minutes of the July 15, 2008 Regular Meeting. B. Approval of Claims. Mr. Bonebrake moved, seconded by Mr. Guevara, to approve the OPWA Consent Agenda with claims totaling $859,602.33. The payroll payment report for pay period ending 7/19/08 was included for review. YEA: Bonebrake, Cataudella, Guevara, Sinex NAY: None Motion carried 4 -0. Owasso Public Works Authority ITEM 4. REPORT FROM OPWA MANAGER No report ITEM 5. REPORT FROM OPWA ATTORNEY No report ITEM 6. NEW BUSINESS None ITEM 7. ADJOURNMENT Mr. Bonebrake moved, seconded by Mr. Sinex, to adjourn. YEA: Bonebrake, Cataudella, Guevara, Sinex NAY: None Motion carried 4 -0 and the meeting was adjourned at 6:45 pm. Pat Fry, Minute Clerk 2 August S, 2008 Stephen Cataudella, Chairman Claims List 08/19/08 Budget Unit Title Vendor Name Payable Description Payment Amouni OPWA ADMINISTRATION CITY OF OWASSO ADMINISTRATIVE OVERHEAD 12,500.00 CITY OF OWASSO ADMINISTRATIVE OVERHEAD 12,500.00 XEROX CORPORATION COPIER MAINTENANCE AGREEM 2,465.16 JPMORGAN CHASE BANK LODGING EXPENSE- STEVENS 568.17 JPMORGAN CHASE BANK HOUSE OF VACUUMS - VACUUM 322.97 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 29.70 AEP /PSO ELECTRIC USE FOR JULY 1,604.02 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 33.10 LASERWORKS INC TONER CARTRIDGE HP 2840 59.95 WAL -MART CORP SAMS CLUB 77150903608 OPERATING SUPPLIES 262.77 OFFICE DEPOT INC OFFICE SUPPLIES 112.93 MIDWEST REPORTING, INC RWD #3 LAWSUIT- DEPOSITION 725.00 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 32.26 TOTAL OPWA ADMINISTRATION 31,216.03 UTILITY BILLING OFFICE DEPOT INC OFFICE SUPPLIES 1.80 AMERICAN MUNICIPAL SERVICES LTD COLLECTION SERVICES 178.66 CHOICEPAY, INC BILLING SERVICES 9.00 TECHNICAL PROGRAMMING SERVICES INC BILLING SERVICES 2,138.78 KATHLEEN A BALSIGER METER READER 171.45 DAVID R. OLINGHOUSE METER READER 272.25 TYRONE EUGENE DINKINS METER READER 266.10 MARK MEYER METER READER 475.20 NOLAN RAY LANE METER READER 76.95 MARK MEYER METER READER 473.85 TECHNICAL PROGRAMMING SERVICES INC BILLING SERVICES 1,151.24 TOTAL UTILITY BILLING 5,215.28 WATER UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 49.69 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 49.69 AEP /PSO ELECTRIC USE FOR JULY 523.56 GEORGE & GEORGE SAFETY & GLOVE SAFETY SUPPLIES & EQUIPME 30.33 JPMORGAN CHASE BANK QUIKSERVICE -MET CAN POST 273.00 JPMORGAN CHASE BANK ATWOODS -TOOLS FOR TRUCK 48.75 OWASSO TOP SOIL DIRT FOR DRESS UPS 40.00 JPMORGAN CHASE BANK LOWES- CHANNEL LOCKS 12.96 JPMORGAN CHASE BANK BROWN FARMS -SOD DRESS UP 80.00 JPMORGAN CHASE BANK NORTHERN SAFETY -RACK 81.53 A -OK SIGNS INC. DBA T -SHIRT EXPRESS T- SHIRTS AND HATS 257.91 JPMORGAN CHASE BANK WATER PROD - PRESSURE GAUGE 104.25 JPMORGAN CHASE BANK WATER PROD - HYDRANT METER 757.00 JPMORGAN CHASE BANK VVEC -WATER CONTROL CTR 15.30 JPMORGAN CHASE BANK BUMPER TO BUMPER -CUT OFF 9.90 FLEETCOR TECHNOLOGIES DBA FUELMAN MONTHLY FUEL COSTS 2,123.11 JPMORGAN CHASE BANK BUMPER TO BUMPER - HARDWARE 8.07 Page 1 Claims List 08/19/08 Budget Unit Title Vendor Name Payable Description Payment Amount WATER... JPMORGAN CHASE BANK BUMPER TO BUMPER - SWIVEL 22.99 JPMORGAN CHASE BANK WATER PROD - SHOVEL 34.50 JPMORGAN CHASE BANK WATER PROD -METER CAN 131.11 JPMORGAN CHASE BANK WATER PROD - REPAIR PARTS 1,305.47 JPMORGAN CHASE BANK WATER PROD -FIRE HYDRANT 2,409.90 TOTAL WATER 8,369.02 WASTEWATER TREATMENT JPMORGAN CHASE BANK DEPT OF ENV QUAL- LICENSE 114.00 WAL -MART CORP SAMS CLUB 77150903608 OPERATING SUPPLIES 15.83 FLEETCOR TECHNOLOGIES DBA FUELMAN MONTHLY FUEL COSTS 737.27 JPMORGAN CHASE BANK LOCKE SUPPLY -WIRE 264.32 JPMORGAN CHASE BANK LOWES- IMPACT WRENCH 254.15 JPMORGAN CHASE BANK ATWOODS -PAPER RAGS 9.99 JPMORGAN CHASE BANK WATER PROD - HYDRANT WRENCH 19.25 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 61.90 JPMORGAN CHASE BANK DEQ -EXAM FEE CANUKY 51.00 A -OK SIGNS INC. DBA T -SHIRT EXPRESS T- SHIRTS AND HATS 257.91 ACCURATE ENVIRONMENTAL CLASS C WASTEWATER OPERAT 395.00 JPMORGAN CHASE BANK WASTE MGMT- SLUDGE DISP 1,521.74 JPMORGAN CHASE BANK WASTE MGMT- SLUDGE DISP 1,310.82 JPMORGAN CHASE BANK LOWES- BUSHINGS 1.95 GEORGE & GEORGE SAFETY & GLOVE SAFETY SUPPLIES & EQUIPME 30.33 AEP /PSO ELECTRIC USE FOR JULY 22,077.32 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 49.25 GREELEY & HANSEN, LLC LBX 619776 WWTP EXPANSION PROJECT 17,499.53 GREEN COUNTRY TESTING, INC SAMPLE ANALYSIS FOR WWTP 20.00 GREEN COUNTRY TESTING, INC SAMPLE ANALYSIS FOR WWTP 20.00 TOTAL WASTEWATER TREATMENT 44,711.56 WASTEWATER COLLECTION: UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 36.84 AEP /PSO ELECTRIC USE FOR JULY 7,319.60 GEORGE & GEORGE SAFETY & GLOVE SAFETY SUPPLIES & EQUIPME 30.33 JPMORGAN CHASE BANK ATWOODS- BLADES FOR SAW 11.98 JPMORGAN CHASE BANK ATWOODS -BOOTS 130.00 JPMORGAN CHASE BANK WEC- COFFEE CREEK 385.40 A -OK SIGNS INC. DBA T -SHIRT EXPRESS T- SHIRTS AND HATS 257.91 JPMORGAN CHASE BANK SMITH & LOVELESS -PARTS 258.66 JPMORGAN CHASE BANK ESTES -WEED KILLER 272.04 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 157.88 CASECO TRUCK BODY & EQUIPMENT SALES NOZZLE FOR JETTER 505.00 OWASSO TOP SOIL DIRT FOR DRESS UPS 80.00 JPMORGAN CHASE BANK SMITH & LOVELESS -PARTS 95.73 JPMORGAN CHASE BANK WEC - GARRETT CREEK 206.49 FLEETCOR TECHNOLOGIES DBA FUELMAN MONTHLY FUEL COSTS 1,812.36 JPMORGAN CHASE BANK WATER PROD -SEWER PIPE 58.10 Page 2 Claims List 08/19/08 Budget Unit Title Vendor Name Payable Description Payment Amouni WASTEWATER COLLECTION: JPMORGAN CHASE BANK WATER PROD - MARKING PAINT 103.17 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 36.84 JPMORGAN CHASE BANK LOWES -TOOLS 126.24 TOTAL WASTEWATER COLLECTIONS 11,884.57 REFUSE COLLECTIONS FLEETCOR TECHNOLOGIES DBA FUELMAN MONTHLY FUEL COSTS 9,992.46 A -OK SIGNS INC. DBA T -SHIRT EXPRESS T- SHIRTS AND HATS 257.91 JPMORGAN CHASE BANK GELLICO- BOOTS /BURTON 89.99 JPMORGAN CHASE BANK GELLICO- BOOTS /FOSTER 89.99 NATIONAL POWER WASH, INC POWER WASH REFUSE VEHICLE 180.00 ALSUMA TRUCK & EQUIP REPAIR REFUSE TRUCK REPAIR - UNI 1,200.26 GEORGE & GEORGE SAFETY & GLOVE SAFETY SUPPLIES & EQUIPME 30.35 UNITED STATES CELLULAR CORPORATION CELL PHONE USAGE 56.43 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 48.39 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 48.39 JPMORGAN CHASE BANK WASTE MGMT- TIPPING FEES 8,657.42 ALSUMA TRUCK & EQUIP REPAIR REFUSE TRUCK REPAIRS 260.19 NATIONAL POWER WASH, INC POWER WASH REFUSE VEHICLE 150.00 TOTAL REFUSE COLLECTIONS 21,061.78 RECYCLE CENTER UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 10.43 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 10.43 AEP /PSO ELECTRIC USE FOR JULY 77.56 JPMORGAN CHASE BANK WASTE MGMT- TIPPING FEES 2,790.80 NATIONAL WASTE & DISPOSAL, INC. TIPPING FEES FOR GLASS RO 220.00 ROTO- ROOTER LEAK REPAIR @ RECYCLE CEN 118.15 JPMORGAN CHASE BANK WASTE MGMT - ROLLOFF FEES 4,772.20 JPMORGAN CHASE BANK WALMART- BATTERIES 4.37 TOTAL RECYCLE CENTER 8,003.94 OPWA DEBT SERVICE THE BANK OF NEW YORK TRUST CO OPWA'06 PROM NOTE 198,295.00 TOTAL OPWA DEBT SERVICE 198,295.00 FUND GRAND TOTAL 328,757.1 OPWA GRAND TOTAL $328,757.18 Page 3 OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING 08/02/08 Department Payroll Expenses Total Expenses OPWA Administration 9,643.89 13,170.25 Utility Billing 5,066.46 7,344.92 Water 8,560.44 13,305.67 Wastewater 9,796.20 15,749.45 Wastewater Collection 6,446.19 10,040.98 Refuse 9,462.68 13,953.92 Recycle Center 944.00 1,610.75 FUND TOTAL 49,919.86 75,175.94 OWASSO PUBLIC WORKS AUTHORITY - OPERATING FUND FISCAL YEAR 2008 -2009 Statement of Revenues & Expenses As of July 31, 2008 MONTH OPERATING REVENUES Water 319,457 Wastewater 232,841 Refuse & recycle 135,659 Other fees 60,170 Interest & other 4,478 TOTAL OPERATING REVENUES 752,605 OPERATING EXPENSES: 8.29% Personal services 146,916 Materials & supplies 188,368 Other services 56,473 Capital outlay 5,483 Debt service 168,601 TOTAL OPERATING EXPENSES 565,841 REVENUES OVER EXPENSES 186,764 YEAR PERCENT TO -DATE BUDGET OF BUDGET 319,457 3,950,000 8.09% 232,841 2,808,600 8.29% 135,659 1,495,200 9.07% 60,170 367,100 16.39% 4,478 7,640,795 13.49% 752,605 16,261,695 4.63% 146,916 2,184,336 6.73% 188,368 2,555,110 7.37% 56,473 1,289,450 4.38% 5,483 8,161,200 0.07% 168,601 2,206,571 565,841 16,396,667 3.45% 186,764 (134,972) NET INCOME (LOSS) 186,764 186,764 (134,972) WORKING CAPITAL - Beginning Balance 600,000 600,000 WORKING CAPITAL - Ending Balance 786,764 465,028 MEMORANDUM TO: THE HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: ROGER STEVENS PUBLIC WORKS DIRECTOR SUBJECT: ANNUAL WATER QUALITY REPORT WATER QUALITY REPORT CERTIFICATE OF COMPLETION AND DISTRIBUTION DATE: August 15, 2008 BACKGROUND: Every year, in conformance with the Safe Drinking Water Act', the City of Owasso prepares and distributes over 8,500 Water Quality Reports to our customers in an effort to enable our citizens to make practical and knowledgeable decisions about their health and the environment. The report contains basic educational information on the water quality — including levels of any detected contaminants, and compliance with drinking water rules. At a minimum, the report must provide consumers with the following fundamental information: ➢ Lake, river, aquifer, or other source of the drinking water; ➢ A brief summary of the susceptibility to contamination of the local drinking water source, based on the source water assessments that states are completing over the next five years; ➢ How to get a copy of the water system's complete source water assessment; ➢ The level (or range of levels) of any contaminant found in local drinking water, as well as EPA's health -based standard (maximum contaminant level) for comparison; ➢ The likely source of that contaminant in the local drinking water supply; ➢ The potential health effects of any contaminant detected in violation of an EPA health standard, and an accounting of the system's actions to restore safe drinking water; ➢ The water system's compliance with other drinking water - related rules; ➢ An educational statement for vulnerable populations about avoiding cryptosporidium; ➢ Educational information on nitrate, arsenic, or lead in areas where these contaminants are detected above 50% of EPA's standard; and ➢ Phone numbers of additional sources of information, including the water system and EPA's safe drinking water hotline. It is worth noting that because the report simply summarizes information the City must collect to comply with the Federal Safe Drinking Water Act, no additional monitoring is required to comply with this mandate. Additionally, since the City purchases water from the City of Tulsa, Right -to -Know Amendment to Clean Water Act in (1996) requires that all owners of systems serving at 25 residents or more or that have 15 service connections serving year round residents distribute such report. the Owasso's Water Quality Report uses much of the educational information and monitoring data provided by the City of Tulsa. A copy of the City of Owasso 2008 Water Quality Report is included as Attachment A. The mandate also requires the City to mail or deliver a copy of the Water Quality Report to each water customer, make an effort to deliver the report to non - bill - paying customers and provide copies of the report upon request. The City must send a copy of the Water Quality Report to the Oklahoma Department of Environmental Quality (ODEQ) and submit a Certificate of Completion and Distribution by October 1, 2008. The Certificate confirms that the information contained in the report is correct and that all distribution requirements have been met. COMPLIANCE STATUS: Staff confirms that the information contained in the City of Owasso 2008 Water Quality Report completed in June 2008 is correct and consistent with compliance monitoring data previously submitted to the ODEQ. Copies of the report were included in customer utility bills distributed during the month of June 2008 and may be viewed by visiting the City of Owasso webpage2 or the offices of Public Works Department at 301 West 2 °a Avenue, Owasso. The City of Owasso has complied with all distribution requirements and may submit the Certificate of Completion to ODEQ upon approval by the Trustees. RECOMMENDATION: Staff recommends Trustee approval of the Oklahoma Department of Environmental Quality Certificate of Completion and Distribution and authorization for the Chair to execute all necessary documents. ATTACHMENTS: A. Copy of 2008 Water Quality Report B. Certificate of Completion and Distribution 2 Address: http:// www .cityofowasso.com/PublicWorks/ Water %20Quality %2OReport%202005.pdf Public Works Department 301 West 2nd Avenue P T M P.O. Box 180 The City without Limits. Owasso, OK 74055 EhO OF THE YM� 2008 ANNUAL WATER QUALITY REPORT OWASSO'S DRINKING WATER IS SAFEM The City of Owasso is pleased to submit to you the 2008 Annual Water Quality Report. We take great pride in providing you, our customer, with reliable and safe drinking water that meets all Federal and State regulations. Again this year, parameters in our water are well below the maximum allowable levels in most instances. We want to keep you informed about the excellent quality of water and services delivered to you over the past year. This report explains where your drinking water comes from, and how the water is treated, monitored and delivered. The information included in this report reflects the data collected from January 1 through December 31, 2007. The included Water Quality Tabulation shows that some contaminants were found, however, not at levels to cause any concern. The Environmental Protection Agency (EPA) Safe Drinking Water Hotline Drinking water, including bottled water, can be expected to contain at least small amounts of some contaminants. The presence of these contaminants does not necessarily indicate that water poses a health risk. More information about contaminants and potential health effects may be obtained by calling the Environmental Protection Agency's (EPA) Safe Drinking Water Hotline (800- 426- 4791). In order to ensure that tap water is safe to drink, the EPA prescribes regulations which limit the amount of certain contaminants in water provided by public water systems. Food and Drug Administration (FDA) regulations establish limits for contaminants in bottled water, which provide protection for public health, as well. How to Contact Us: For questions concerning your water utility, please contact the Owasso Public Works Department at 272 -4959. Inquiries about this report may be directed to Roger Stevens (Interim Public Works Director). For questions about your water bill, please contact the City of Owasso Utility Billing Office at 376 -1500. To Learn More about our Water Utility: Please attend any of the regularly scheduled meetings of the Owasso City Council and the Owasso Public Works Authority. Meetings are held on the first and third Tuesday of each month at Old Central (109 N. Birch) beginning at 6:30 p.m. For Additional Information: c,y Visit our website at: www.cityofowasso.com 2008 Water Quality Report Questions and Answers about Owasso's Drinking Water Q. Where does Owasso's water come from? Q. What does the data mean? A. Our water is purchased from the City of Tulsa. The water is treated surface water transported from three sources in northeastern Oklahoma (Lake Oologah on the Verdigris River, Lakes Spavinaw and Eucha on Spavinaw Creek, and Lake Hudson on the Neosho River). After the water reaches the lakes, it travels to the Mohawk and A.B. Jewell water treatment plants where it is treated to remove substances that might threaten public health. Q. Which plant treats our drinking water? A. Tulsa has a vast underground network of pipes that carry drinking water from two treatment facilities to our faucets. Which plant provides water to specific areas of the city and surrounding areas depends on daily changes in supply and demand. Generally, customers in the north and west portions of Tulsa (which includes Owasso) receive water treated at the Mohawk Plant and those in the south and east areas are served by the A.B. Jewell Plant. Both plants serve the central areas of Tulsa. Q. Is Owasso's water safe to drink? A. YES. The City of Owasso and the City of Tulsa routinely monitor for irregularities in your drinking water according to Federal and State laws. In 2007, the City of Tulsa analyzed more than 2,300 samples looking for pollutants that might be dangerous to your health, and substances that can make the water taste or smell unpleasant. In addition, the City of Owasso collected 300 samples throughout the distribution. The adjacent table shows the results of our monitoring for the period of January through December 2007. A. As you can see by the table, the drinking water delivered to Owasso area homes and businesses exceeds all federal requirements. Although some contaminants were detected in 2007, the EPA has determined that your water is safe at these levels. Q. What are contaminants? A. The sources of drinking water (both tap and bottled water) include rivers, lakes, streams, ponds, reservoirs, springs and wells. As water travels over the surface of the land or through the ground, it dissolves naturally occurring minerals and, in some cases, radioactive material, and can pick up substances resulting from the presence of animals or human activity. Contaminants that may be present in water prior to treatment include: Microbial contaminants: Come from sewage treatment plants, septic systems, agricultural livestock operation and wildlife. Inorganic contaminants: Naturally - occurring or result from urban stormwater runoff, industrial or domestic wastewater discharges, oil and gas production and mining or farming. Pesticides and herbicides: Come from a variety of sources such as agricultural urban stormwater runoff and residential uses. Chemical contaminants: Include synthetic chemicals - are byproducts of industrial processes and petroleum production that can come from gas stations, urban stormwater runoff and septic systems. Radioactive contaminants: Naturally occurring substances or the result of oil and gas production and mining activities. Important Health Information Some people may be more vulnerable to contaminants in drinking water than the general population. Immuno- compromised persons such as persons with cancer undergoing chemotherapy, persons who have undergone organ transplants, people with HIV /AIDS or other immune system disorders, some elderly, and infants can be particularly at risk from infections. These people should seek advice about drinking water from their health care providers. EPA and The Center for Disease Control (CDC) guidelines on appropriate means to lessen the risk of infection by cryptosporidium and other microbiological contaminants are available from the Safe Drinking Water Hotline (800- 426- 4791). WATER QUALITY DATA TABULATION Tulsa's Water Quality Data: MCL Likely Sources Contaminants Regulated Contaminants Airg. Min. Turbidity level found Max. 0.36 7T'' = less than 0.3 h rU 95 percent of the nin, MCLG N/A of Soil runnit Lowest monthly percent meeting regulations 99% presence of eolitorm, Total Coltform Bacteria within 1.8% bacteria in more than 5% 0 Naturally present in the environment distribution system of monthly samples Lead 2 -7 pph at 9011 percentile AL_ = 15 parts prr billion 0 Conosiou of household plumbing .sv l(ms Copper 0.13 ppm at 90th percentile AL* = 1.3 parts per million 1.3 Corrosion of household plumbing systems Grans B,io lta(1tonudidrs n/a u/a n/o -1 mrem /v) N/A Decav of natural and man made deposits Gross Alpha Radionuclides n/a .5 1.7 16 pCi /L N/A Erosion of natural deposits 60 parts per billion annual Haloacetic Acids 20 0 43 N/A By- product of drinking water disinfection average Total Organic Carbon n/a 20% 50% T1* - Treatment'rechnlque N/A Naturally found in the environment IFluonde n/a 0 1.3 d parts pci million 2 WA'wr addttnr promoting strong teeth Nitrate n/a 0 24 10 parts per million 10 Runoff from fertilizer use MRDI * - -1.0 pans per MURI.G' Chlorine 1.7 2 2.9 million annu'd arige -3.0 A4'at,r additicc uv,d to cnntnd microbes rihaloinethane 49 20 90 80 parts per billion annual N/A By- product of drinking water chlorination average Some people who drink water containing trihalomethanes in excess of the MCL over many years may eaperienee problems with their liver, kidneys, or central nervous systems, and may have an increased risk of getting cancer. The risk assessment devloped for trihalomethanes showed that those consuming 2 liters of water with 100 ppb trihalomethanes for 70 years increased the likelihood of developing cancer by I in one million. Atrarin < 3 pans per billion 3 Itunutt 1.om herbtctdc used ou row cmps Chlorite n/a 12 47 I pant per million 0.8 By- product of drinking water disinfection Sodium n/a 8.1 ppm 25.4 ppm* I Standards have not been established Naturally occurring or urban stormwater runo Owasso's Water Quality Data: Total Coliform 2 > 1 po.cttl, e 0 positive Naturally present in the environment Fecal Coliform and E. Coll 0 >_ positive 1 0 positive Ifluman and animal fecal waste I*Definitions of Terms Found in the Table: L (Maximum Contaminant Level): The highest level of a contaminant allowed in drinking water. MCLs are set as close to the MCLGs as feasible ag the best available treatment technology and taking cost into consideration. MCLs are enforceable standards. LG (Maximum Contaminant Level Goal): The level of a contaminant in drinking water below which there is no known or expected risk to health. LGs allow for a margin of safety and are non - enforceable public health goals. LD (Maximum Residual Disinfectant Level): The highest level of a disinfectant allowed in drinking water. There Is convincing evidence that the Iition of a disinfectant is necessary for control of microbial contaminants. DLG (Maximum Residual Disinfectant Level Goal): The level of a drinking water disinfectant below which there is no known or expected risk to ith. MRDLGs do not reflect the benefits of the use of disinfectants to control microbial contaminants. (Treatment Technique): A required process intended to reduce the level of a contaminant in drinking water. (Action Level): The concentration of a contaminant, which if exceeded, triggers a treatment or other requirement which a water system must follow. U (Nepbelolometrie Turbidity Unit): A measurement of the turbidity, or cloudiness, of the water. Turbidity has no health effects. However, turbidit , interfere with disinfection and provides a medium for microbial growth. Turbidity may indicate the presence of disease- causing organisms. These anisms include bacteria, viruses, and parasites that can cause symptoms such as nausea, diarrhea, and associated headaches. em /yr (millirems per year): A measure of radiation absorbed by the body. a (parts per million): Comparable to 1 minute in two years. i (parts per billion): Comparable to 1 minute in 2,000 years. t (Not Applicable) collected November 2000. Frequency of monitoring requirements is within compliance regulations. WATER CONSERVATION TIPS Water conservation measures are an important first step in preserving our water supply. Also, utilizing these measures can save you money through reductions in your water and sewer bills. 1. Fix leaking faucets, pipes and toilets. 2. Replace high water use fixtures. 3. Install water - saving devices in faucets, toilets and appliances. Take a shallow bath (Saves 15 -20 gallons) Here are a few suggestions: Use the garbage disposal less (Saves 50 -150 gallons per month) Turn off the water while brushing your teeth or shaving (Saves approximately 3 gallons per day) Water the lawn only when Plant drought - resistant necessary trees /shrubs (Saves up to 1000 (Saves up to 1000 gallons per month) gallons per month) Keep a bottle of cold water in the refrigerator for drinking instead of running the tap (Saves 200 -300 gallons per month) Run only full loads in the washing machine and dishwasher (Saves 75 -200 gallons per month) Shorten your shower (A 2- minute reduction can save 700 gallons per month) Consumer Confidence Report CERTIFICATE OF COMPLETION and DISTRIBUTION PWS Name: City of Owasso PWS ID #3007218 The community water system indicated above hereby confirms that the Consumer Confidence Report has been distributed to customers (and appropriate notices of availability have been given) in accordance with 40 CFR 141.155. Further, the system certifies that the information contained in the report is correct and consistent with the compliance monitoring data previously submitted to the primacy agency. Certified by: Name: Stephen Cataudella Title: Chairman, Owasso Public Works Authority Phone: 918/376 -1502 Date: August 19, 2008 RETURN a copy of your Consumer Confidence Report and the signed Certificate of Completion and Distribution to the following address: Consumer Confidence Report Water Quality Division Department of the Environmental Quality P.O. Box 1677 Oklahoma City, OK 73101 -1677 MEMORANDUM TO: THE HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: ROGER STEVENS PUBLIC WORK DIRECTOR SUBJECT: AMENDMENT TO AGREEMENT FOR ENGINEERING SERVICES WASTEWATER TREATMENT PLANT, PUMP STATION AND COLLECTION SYSTEM EXPANSION AND UPGRADE DATE: August 15, 2008 BACKGROUND: The City of Owasso provides wastewater collection, conveyance and treatment services for over 8,500 residential, business and industrial customers. The existing collection system consists of over 100 miles of sanitary sewer line (ranging in size from 4 to 21 inches in diameter), 12 pump stations and a 3.3 million gallon per day (MGD) treatment facility. In response to rapid growth, in 2005 the City of Owasso commissioned the update of its 1997 Wastewater Master Plan. The update, now completed, provides a 20 -year guide for the prioritization and construction of upgrades to the City's conveyance and treatment infrastructure. Among the immediate needs, the plan recommends the investment of approximately $7.9 million for the upgrade of the Wastewater Treatment Plant and the 117th Street Pump Station. The recommended improvements will increase the average treatment plant capacity to 4.2 mgd — which is anticipated to meet treatment demand for the next 10 years. Similarly, improvement to the 117th Street Pump Station will upgrade existing facilities thereby increasing pumping capacity to accommodate present and future needs. In order to meet these needs, the City of Owasso invited Statements of Qualifications for Professional Engineering Services from three consulting firms to provide design services for these improvements. Following an evaluation and recommendation by both engineering and operations staff, the Authority awarded a contract for engineering services to Greeley & Hansen in the amount of $545,000 during it's regularly scheduled meeting of July 13, 2007. Design work under this agreement is on -going and will be completed by mid - September. ADDITIONAL PROJECT SCOPE: Extensive current and proposed development in the southwestern corner of Rogers County, east of Owasso, has created the opportunity for the extension of City of Owasso sanitary sewer to this area. In September 2007, City of Owasso engineering and operations staff began discussions with Greeley & Hansen concerning the development of a design for a sanitary sewer interceptor along a 76th Street North alignment to serve an area generally bounded by 76th Street North to the north, the Verdigris River to the east, 59th Street to the south and 143rd East Avenue to the west. Amendment to the Agreement for Engineering Services Sanitary Sewer Treatment and Collection Improvements Page 2 of 3 This area consists of all or portions of Sections 25, 26, 35 and 36 of Township 21 North, Range 14 East, Sections 1 and 2 of Township 20 North, Range 14 East and Section 31 of Township 21 North, Range 15 East. In all, some 4,708 Gross Acres are within the drainage basin, 3,136 Net Acres are available for development and 707 Net Acres previously developed would have access the proposed sanitary sewer interceptor. The estimated population of the service area is 8,727. The proposed 76th Street Interceptor would be a gravity sewer line and would extend east from a connection to the Elm Creek Interceptor (west of the 76th Street North/145th East Avenue intersection) a distance of 5.5 miles to approximately 193rd East Avenue. The western segment 20,410 lineal feet of the interceptor is proposed to be constructed of 27 ", 24 ", 21 ", 15 "and 12" PVC pipe; the eastern segment 8,890 lineal feet of the interceptor (76th Street North Interceptor – East Extension) is proposed to be constructed of 10" PVC pipe. The construction cost for these two components is estimated to be $4,800,000. AMENDMENT TO THE ENGINEERING SERVICES AGREEMENT: Based on the scope for the 76 Street Sanitary Sewer Interceptor project, City staff requested an amendment to the previously approved Engineering Services Agreement from Greeley & Hansen. Engineering Services to be performed by the engineer under this amendment include: Preparation of a preliminary engineering report (PER) to qualify the proposed project for ODEQ State Revolving Fund financing. Preparation of preliminary and final design for approximately 29,300 lineal feet of gravity sewer (including design survey, mapping and geotechnical investigation). Preparation of contract documents including drawings, specifications and permit applications for the project. Bid related assistance. Greeley and Hansen has developed staff -hour projections for the additional scope and submitted a fixed rate fee proposal in the amount of $358,000 or 7.5% of the estimated construction cost (Attachment Q. PROJECT SCHEDULE: The design of the 76'h Street Interceptor project will require approximately eight months to complete. The schedule below illustrates a start date of August 2008 and an approximate completion date of April 2009 (for engineering services). — Notice to Proceed to Greeley & Hansen from the City of Owasso – August 2008. — Project Start Date – August 2008. — Complete Design Survey and Geotechnical Investigation – October 2008. — Complete Preliminary Design/Utility Coordination – December 2008 — Complete Final Design – February 2009 — Complete DPW /ODEQ Review – February 2009 — Advertise for Bids – March 2009 Amendment to the Agreement for Engineering Services Sanitary Sewer Treatment and Collection Improvements Page 3 of 3 — Receive Bids – April 2009 — Council Approval/Notice to Proceed – May 2009 — Construction Complete – Western Segment (Elm Creek Interceptor to School) - October 2009 — Construction Complete – Eastern Segment (School to East 193rd Street and Collectors) – February 2010 FUNDING: Funding for this project will be obtained from the Oklahoma Water Resources Board (OWRB) via a loan from the Drinking Water State Revolving Fund. Resolution No. 2007 -06, passed by the Authority during its meeting of July 13 2007, declares the Authority's intent to be reimbursed from proceeds of the OWRB loan for project expenses incurred by the OPWA prior to loan closing. FY 2008 -2009 allocation for Wastewater Improvements provides sufficient temporary funding pending reimbursement from OWRB. RECOMMENDATION: Staff recommends OPWA Trustee approval of an amendment to the Agreement for Engineering Services for the Wastewater Treatment Plant Expansion and 117th Street Pump Station Upgrade with Greeley and Hansen, LLC (Chicago, Illinois) for the purpose of expanding the scope of services to include the design of the 76th Street Sanitary Sewer Interceptor project in the amount of $358,000 and authorization of the Chaiman to execute the agreement. ATTACHMENTS: A. Engineering Services Agreement with Greeley and Hansen w /Attachments B. Service Area Map Amendment to the Agreement for Engineering Services EAST 76 STREET NORTH SANITARY SEWER INTERCEPTOR and Owasso Public Works Authority Owasso, Oklahoma THIS AGREEMENT, made and entered into this August 19, 2008 between the Owasso Public Works Authority, Owasso, Oklahoma, a Municipal Corporation, of Oklahoma, hereinafter referred to as AUTHORITY, Greeley and Hansen LLC, hereinafter referred to as ENGINEER; WITNESSETH: WHEREAS, AUTHORITY intends to design the East 76 Street North Sanitary Sewer Interceptor, hereinafter referred to as the PROJECT; and, WHEREAS, AUTHORITY requires certain professional services in connection with the PROJECT, hereinafter referred to as the SERVICES; and, WHEREAS, ENGINEER, is prepared to provide such SERVICES; NOW THEREFORE, in consideration of the promises contained herein, the parties hereto agree as follows: 1. SERVICES TO BE PERFORMED BY ENGINEER. ENGINEER shall perform the SERVICES described in Attachment A, SCOPE OF SERVICES, which is attached hereto and incorporated by reference as part of this AGREEMENT. 2. AUTHORITY'S RESPONSIBILITIES. AUTHORITY shall be responsible for all matters described in Attachment B, RESPONSIBILITIES OF THE, which is attached hereto and incorporated by reference as part of this AGREEMENT. 3. COMPENSATION. AUTHORITY shall pay ENGINEER in accordance with Attachment C, COMPENSATION, and further described in Attachment D, MAN -HOUR BREAKDOWN, which are attached hereto and incorporated by reference as part of this AGREEMENT. 4. SCHEDULE. ENGINEER shall perform the SERVICES described in Attachment E, SCOPE OF SERVICES, in accordance with the schedule set forth in Attachment A, SCHEDULE, attached hereto and incorporated by reference as part of this AGREEMENT. 5. STANDARD OF PERFORMANCE. ENGINEER shall perform the SERVICES undertaken in a manner consistent with the prevailing accepted standard for similar services with respect to projects of comparable function and complexity and with the applicable laws and regulations published and in effect at the time of performance of the SERVICES. The PROJECT shall be designed and engineered in a good and workmanlike manner and in strict accordance with this AGREEMENT. All engineering work shall be performed by or under the supervision of Professional Engineers licensed in the State of Oklahoma, and properly qualified to perform such engineering services, which qualification shall be subject to review by. Other than the obligation of the ENGINEER to perform in accordance with the foregoing standards, no warranty, either express or implied, shall apply to the SERVICES to be performed by the ENGINEER pursuant to this AGREEMENT or the suitability of ENGINEER'S deliverables. 6. LIMITATION OF RESPONSIBILITY. 6.1. ENGINEER shall not be responsible for construction means, methods, techniques, sequences, procedures, or safety precautions and programs in connection with the PROJECT. 6.2. The presence of ENGINEER'S personnel at a construction site is for the purpose of providing to the AUTHORITY a greater degree of confidence that the completed construction work will conform generally to the construction documents and that the integrity of the design concept as reflected in the construction documents has been implemented and preserved by the construction contractor(s). 6.3. In soils, foundation, groundwater, and other subsurface investigations, the actual characteristics may vary significantly between successive test points and sample intervals and at locations other than where observations, exploration, and investigations have been made. Because of the inherent uncertainties in subsurface evaluations, changed or unanticipated underground conditions may occur that could affect total PROJECT cost and /or execution. These conditions and cost/ execution effects are not the responsibility of ENGINEER. 6.4. Record drawings will be prepared, in part, on the basis of information compiled and furnished by others, and may not always represent the exact location, type of various components, or exact manner in which the PROJECT was finally constructed. ENGINEER is not responsible for any errors or omissions in the information from others that is incorporated into the record drawings. 6.5. ENGINEER'S deliverables, hard copies of record drawings are to be provided upon the completion of the project. Computer - generated drawing files furnished by ENGINEER are for AUTHORITY or others' convenience. Any conclusions or information derived or obtained from these files will be at user's sole risk. 7. OPINIONS OF COST AND SCHEDULE. 7.1. Since ENGINEER has no control over the cost of labor, materials, equipment, or services furnished by others, or over contractors', subcontractors', or vendors' methods of determining prices, or over competitive bidding or market conditions, ENGINEER'S cost estimates shall be made on the basis of qualifications and experience as a Professional Engineer. 7.2. Since ENGINEER has no control over the resources provided by others to meet construction contract schedules, ENGINEER'S forecast schedules shall be made on the basis of qualifications and experience as a Professional Engineer. LITY AND INDEMNIFICATION. ENGINEER shall defend and indemnify AUTHORITY from and against legal liability for damages arising out of the performance of the SERVICES for, including but not limited to any claims, costs, attorney fees, or other expenses of whatever nature where such liability is caused by the negligent act, error, or omission of ENGINEER, or any person or organization for whom ENGINEER is legally liable. Nothing in this paragraph shall make the ENGINEER liable for any damages caused by the AUTHORITY or any other contractor or consultant of the AUTHORITY. ENGINEER shall not be liable to AUTHORITY for any special, indirect or consequential damages, such as, but not limited to, loss of revenue, or loss of anticipated profits. 'RACTOR INDEMNIFICATION AND CLAIMS. AUTHORITY agrees to include in all construction contracts the provisions of Articles 7.1, and 7.2, and provisions providing contractor indemnification of AUTHORITY and ENGINEER for contractor's negligence. 9.2. AUTHORITY shall require construction contractor(s) to name AUTHORITY and ENGINEER as additional insured's on the contractor's general liability insurance policy. 10. COMPLIANCE WITH LAWS. In performance of the SERVICES, ENGINEER shall comply with applicable regulatory requirements including federal, state, and local laws, rules, regulations, orders, codes, criteria and standards. ENGINEER shall procure the permits, certificates, and licenses necessary to allow ENGINEER to perform the SERVICES. ENGINEER shall not be responsible for procuring permits, certificates, and licenses required for any construction unless such responsibilities are specifically assigned to ENGINEER in Attachment B, SCOPE OF SERVICES. 11. INSURANCE 11.1. During the performance of the SERVICES under this AGREEMENT, ENGINEER shall maintain the following insurance: 11.1.1. General Liability Insurance with bodily injury limits of not less than $1,000,000 for each occurrence and not less than $1,000,000 in the aggregate, and with property damage limits of not less than $100,000 for each occurrence and not less than $100,000 in the aggregate. 11.1.2. Automobile Liability Insurance with bodily injury limits of not less than $1,000,000 for each person and not less than $1,000,000 for each accident and with property damage limits of not less than $100,000 for each accident. 11.1.3. Worker's Compensation Insurance in accordance with statutory requirements and Employers' Liability Insurance with limits of not less than $100,000 for each occurrence. 11.1.4. Errors and Omissions Insurance to remain in effect during the PROJECT and the term of any legal liability. Errors and Omissions coverage to be for a minimum of $1,000,000, deductibles subject to approval. 11.2. ENGINEER shall furnish AUTHORITY certificates of insurance which shall include a provision that such insurance shall not be canceled without at least 30 days written notice to the AUTHORITY. 12. OWNERSHIP AND REUSE OF DOCUMENTS. 12.1. All documents, including original drawings, estimates, specifications, field notes and data shall become and remain the property of the AUTHORITY. 12.2. AUTHORITY'S reuse of such documents without written verification or adaptation by ENGINEER for the specific purpose intended shall be at AUTHORITY'S risk. 13. TERMINATION OF AGREEMENT. 13.1. The obligation to continue SERVICES under this AGREEMENT may be terminated by either party upon fifteen days written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof through no fault of the terminating party. 13.2. AUTHORITY shall have the right to terminate this AGREEMENT, or suspend performance thereof, for AUTHORITY'S convenience upon written notice to ENGINEER; and ENGINEER shall terminate or suspend performance of SERVICES on a schedule acceptable to AUTHORITY. In the event of termination or suspension for AUTHORITY'S convenience, AUTHORITY shall pay ENGINEER for all SERVICES performed to the date of termination in accordance with provisions of Attachment D, COMPENSATION. Upon restart of a suspended project, ENGINEER's contract price and schedule shall be equitably adjusted. 14. NOTICE. Any notice, demand, or request required by or made pursuant to this AGREEMENT shall be deemed properly made if personally delivered in writing or deposited in the United States mail, postage prepaid, to the address specified below. To ENGINEER: Paul Vogel and Ken Johnson Greeley and Hansen LLC 100 S. Wacker Drive, Suite 1400 Chicago, Illinois 60606 To AUTHORITY: Owasso Public Works Authority P.O. Box 180 Owasso, Oklahoma 74055 Attention: Roger Stevens 14.1. Nothing contained in this Article shall be construed to restrict the transmission of routine communications between representatives of ENGINEER and AUTHORITY. 15. UNCONTROLLABLE FORCES. Neither AUTHORITY nor ENGINEER shall be considered to be in default of this AGREEMENT if delays in or failure of performance shall be due to forces which are beyond the control of the parties; including, but not limited to: fire, flood, earthquakes, storms, lightning, epidemic, war, riot, civil disturbance, sabotage; inability to procure permits, licenses, or authorizations from any state, local, or federal agency or person for any of the supplies, materials, accesses, or services required to be provided by either AUTHORITY or ENGINEER under this AGREEMENT; strikes, work slowdowns or other labor disturbances, and judicial restraint. 16. SEVERABILITY. If any portion of this AGREEMENT shall be construed by a court of competent jurisdiction as unenforceable, such portion shall be severed here from, and the balance of this AGREEMENT shall remain in full force and effect. 17. INTEGRATION AND MODIFICATION. This AGREEMENT includes Attachments A, B, C, D, E and represents the entire and integrated AGREEMENT between the parties; and supersedes all prior negotiations, representations, or agreements pertaining to the SCOPE OF SERVICES herein, either written or oral. AUTHORITY may make or approve changes within the general Scope of Services in this AGREEMENT. If such changes affect ENGINEER'S cost of or time required for performance of the services, an equitable adjustment will be made through an amendment to this AGREEMENT. This AGREEMENT may be amended only by written instrument signed by each of the Parties. 18. DISPUTE RESOLUTION PROCEDURE. In the event of a dispute between the ENGINEER and the AUTHORITY over the interpretation or application of the terms of this AGREEMENT, the matter shall be referred to the AUTHORITY'S Director of Public Works for resolution. If the Director of Public Works is unable to resolve the dispute, the matter may, in the Director's discretion, be referred to the AUTHORITY Manager for resolution. Regardless of these procedures, neither party shall be precluded from exercising any rights, privileges or opportunities permitted by law to resolve any dispute. 19. ASSIGNMENT. ENGINEER shall not assign its obligations undertaken pursuant to this AGREEMENT, provided that nothing contained in this paragraph shall prevent ENGINEER from employing such independent consultants, associates, and subcontractors as ENGINEER may deem appropriate to assist ENGINEER in the performance of the SERVICES hereunder. 20. APPROVAL. It is understood and agreed that all work performed under this AGREEMENT shall be subject to inspection and approval by the Public Works Department of the of Owasso, and any plans or specifications not meeting the terms set forth in this AGREEMENT will be replaced or corrected at the sole expense of the ENGINEER. The ENGINEER will meet with the AUTHORITY staff initially and periodically thereafter and will be available for public meetings and /or AUTHORITY. 21. KEY PERSONNEL. In performance of the SERVICES hereunder, ENGINEER has designated Joseph Teusch as Project Manager for the PROJECT. ENGINEER agrees that no change will be made in the assignment of this position without prior approval of AUTHORITY. IN WITNESS WHEREOF, the parties have executed this AGREEMENT in multiple copies on the respective dates herein below reflected to be effective on the date executed by the Chair of the AUTHORITY. APPROVED: Authority Clerk APPROVED AS TO FORM: Authority Attorney Greelev and Hansen LLC Paul Vogel and Kenneth V. Johnson Principal Date Joseph Teusch Associate OWASSO PUBLIC WORKS AUTHORITY Chair Date ATTACHMENT A AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES between CITY OF OWASSO, OKLAHOMA and GREELEY AND HANSEN LLC EAST 76TH STREET NORTH SANITARY SEWER INTERCEPTOR SCOPE OF SERVICES The scope of engineering services includes planning, design and bid assistance in connection with the East 76th Street North Sanitary Sewer Interceptor. The proposed interceptor is needed to extend sewer service in the southeast region of the service area. The proposed project will serve the area generally bordered by E. 76th Street N. to the north, the Verdigris River to the east, E. 59th Street N. to the south and N. 143rd E. Avenue to the west. It is anticipated that sewer flows from the project area, which will include the Stone Canyon development will be conveyed to the existing Elm Creek Interceptor located one -half mile southwest of the E. 76th Street N. and N. 143rd E. Avenue intersection. The scope of work includes the following major elements: a. Prepare a preliminary engineering report (PER) to qualify the proposed project for ODEQ State Revolving Fund financing. b. Prepare Contract Documents and provide bid related assistance for the design of approximately 29,300 feet of gravity sewer. TASK 1.0 - PRELIMINARY ENGINEERING REPORT 1.1 Progress Meetings. Meet monthly with Owasso utility staff to review technical aspects of the project. Prepare meeting notes and distribute. 1.2 Gather Basic Data. Collect relevant information on the planning area, including land uses, zoning and any available reports and drawings on the existing sewer system. 1.3 Summarize Basic Data for Service Area. Prepare spreadsheets showing projected wastewater flow rates from the service area based upon anticipated land use and development rate. Prepare an electronic base map (USGS topographic map or equivalent) to show the proposed sewer facilities. 1.4 Alternatives Evaluation. Develop and screen two alternative alignments for the interceptor sewer. Compare alternatives based upon cost and other non - monetary factors. Analyze the capacity of the Elm Creek Interceptor to receive flow from the service area. 1.5 Environmental Information Document. Discuss and show project impacts to: soils and geology; wetlands; floodplain; groundwater; air quality; biota; historic, architectural, archeological sites; national landmarks; open space and indirect impacts. It is understood that the cost for an Archeological Survey, if needed, is not included as part of this scope. 1.6 Project Implementation. Coordinate with the City of Owasso's financial and rate consultant regarding SRF financing for the selected plan. Develop a schedule for design and construction of the selected plan. Arrange for necessary resolutions to be issued, including resolutions identifying the designated wastewater management agency (City of Owasso Public Works Department), designating the authorized loan signatory and indicating the City of Owasso's acceptance of the preliminary engineering report. 1.7 Pubic Participation. Participate in the public hearing, to be attended by members of the City of Owasso Department of Public Works, and interested citizens. Prepare handouts and graphics for the meeting. The public hearing will present and receive public comments on the selected plan. 1.8 Preliminary Engineering Report. Prepare a draft report for review by City of Owasso Public Works Department. Incorporate City of Owasso comments in draft report. After public hearing, incorporate into the final report the hearing transcript, written comments and response and any resulting modifications to the selected project. Submit 6 copies of the final report to the City of Owasso. Respond to ODEQ comments on the preliminary engineering report and revise the plan as necessary in response to ODEQ comments. TASK 2.0 - PRELIMINARY DESIGN 2.1 Aerial Mapping. Arrange for and provide, through a subcontract, aerial survey and topographic mapping for an area approximately 5.5 miles in length and 400 feet in width. The topographic survey will provide 1 -foot contour intervals at a scale of 1" = 40'. 2.2 Utilities and ROW Survey. Arrange for and provide, through a subcontract, a ground survey to map buried utilities, to obtain elevations of special pipeline crossings such as ditches or creeks, and to determine existing property owner/ easement information along the proposed sewer alignment. 2.3 Geotechnical Report. Arrange for and provide, through a subcontract, soil borings and a geotechnical report for the project. It is anticipated that soil borings will be taken at 500 -foot intervals along the proposed sewer alignment. 2.4 Easement Requirements. Determine the number, size and type of easements that will be required for the construction of the project. 2.5 Preliminary Construction Cost Opinion. Prepare a preliminary construction cost opinion consisting of quantity takeoffs and unit costs for the Project. TASK 3.0 - FINAL DESIGN 3.1 Drawings. Prepare Construction Drawings for use, together with the Construction Specifications, in taking competitive bids and entering into a construction contract with an experienced and competent contractor. 3.2 Specifications. Prepare Construction Specifications for use, together with the Construction Drawings, in taking competitive bids and entering into a construction contract with an experienced and competent contractor. 3.3 Final Construction Cost Opinion. Upon completion of the Drawings and Specifications, prepare final construction cost opinion. 3.4 Legal Descriptions. Arrange for and provide, through a subcontract, legal descriptions and exhibits for the project. This task provides for the preparation of legal descriptions and exhibits for permanent/ temporary easements for up to 20 parcels. 3.5 Permit Applications. Prepare project information submissions, including permit applications and review comments, to the ODEQ for Construction Permit and to the U.S. Department of Army for Section 404 Water Quality Permit. Provide in the specifications a list of permits which must be obtained by the construction contractor. It is understood that the construction contractor must obtain the ODEQ Stormwater and Erosion Control Permit. TASK 4.0 - BID ASSISTANCE 4.1 Bidder Inquiries. Respond to bidder inquiries during the bidding period. 4.2 Addenda. Prepare addenda as needed to clarify the Contract Documents. 4.3 Pre -Bid Meeting. Attend pre -bid meeting and prepare meeting notes. 4.4 Bid Report. Tabulate bids and prepare bid report including recommendation on award of contract. Amendment to the Agreement for Engineering Services Owasso Public Works Authority City of Owasso, Oklahoma EAST 76 STREET NORTH SANITARY SEWER INTERCEPTOR Responsibilities of the Authority Attachment B RESPONSIBILITIES OF THE AUTHORITY. The AUTHORITY agrees: A. Scheduling. Provide notice to proceed at least 14 days prior to actual project start date. B. Reports, Records, etc. To furnish, as required by the work, and not at expense to the ENGINEER: 13.1. Records, reports, studies, plans, drawings, and other data available in the files of the AUTHORITY that may be useful in the work involved under this AGREEMENT. 13.2. ENGINEER will reasonably rely upon the accuracy, timeliness, and completeness of the information provided by AUTHORITY. C. Access. To provide access to public and private property when required in performance of ENGINEER's services. D. Staff Assistance. Designate in writing a person to act as its representative in respect to the work to be performed under this AGREEMENT, and such person shall have complete authority to transmit instructions, receive information, interpret and define CITY'S policies and decisions with respect to materials, equipment, elements and systems pertinent to the services covered by this AGREEMENT. E. Review. Examine all studies, reports, sketches, estimates, specifications, drawings, proposals and other documents presented by ENGINEER and render in writing decisions pertaining thereto within a reasonable time so as not to delay the services of ENGINEER. ATTACHMENT C AGREEMENT FOR PROFESSIONAL SERVICES between CITY OF OWASSO, OKLAHOMA and GREELEY AND HANSEN LLC East 76th Street North Sanitary Sewer Interceptor Estimated Compensation Task 1.0 - Preliminary Engineering Report Direct Labor: a. Principal b. Project Manager c. Senior Engineer d. Project Engineers e. Designers /CAD Operators f. Word Processors Subtotal 2. Greeley and Hansen Labor Costs with 2.99 Multiplier 3. Other Direct Costs a. Reproduction /Printing 4. Subtotal - Preliminary Engineering Report Task 2.0 - Preliminary Design Direct Labor: a. Principal b. Project Manager c. Senior Engineer d. Project Engineers e. Designers /CAD Operators f. Word Processors Subtotal 2. Greeley and Hansen Labor Costs with 2.99 Multiplier 3. Subconsultant Costs a. Aerial Mapping - ADS, Inc. b. Utilities & ROW Survey - Harden & Associates c. Geotechnical - Terracon Total 4. Subconsultant Costs with 1.05 Multiplier $45,328 $200 Estimated Days Hours /Day Rates Cost 0.5 8 $75 $300 10.0 8 $45 $3,600 1.0 8 $50 $400 28.5 8 $35 $7,980 11.0 8 $30 $2,640 2.0 8 $15 $240 53.0 $15,160 $45,328 $200 $50,000 $25,000 $35,000 $110,000 $16,086 $115,500 $45,528 5. Subtotal - Preliminary Design $131,586 Page 1 of 2 Estimated Days Hours /Day Rates Cost 0.0 8 $75 $0 4.5 8 $45 $1,620 0.0 8 $50 $0 10.0 8 $35 $2,800 4.0 8 $30 $960 0.0 8 $15 $0 18.5 $5,380 $50,000 $25,000 $35,000 $110,000 $16,086 $115,500 $45,528 5. Subtotal - Preliminary Design $131,586 Page 1 of 2 Task 3.0 - Final Design 1. Direct Labor: a. Principal b. Project Manager c. Senior Engineer d. Project Engineers e. Designers /CAD Operators f. Word Processors Subtotal ATTACHMENT C AGREEMENT FOR PROFESSIONAL SERVICES between CITY OF OWASSO, OKLAHOMA and GREELEY AND HANSEN LLC East 76th Street North Sanitary Sewer Interceptor Estimated Compensation 2. Greeley and Hansen Labor Costs with 2.99 Multiplier 3. Subconsultant Costs a. Legal Descriptions - Harden & Associates Total 4. Subconsultant Costs with 1.05 Multiplier 5. Other Direct Costs a. Airfare/ Travel b. Reproduction /Printing Subtotal 6. Subtotal - Final Design Task 4.0 - Bid Assistance 1. Direct Labor: a. Principal b. Project Manager c. Senior Engineer d. Project Engineers e. Designers /CAD Operators f. Word Processors Subtotal $2,500 $2,500 $166,782 $2,625 3 Trips @ $750 / Trip $2,250 $1,000 $3,250 Estimated Days Hours /Day Rates Cost 2.0 8 $75 $1,200 18.5 8 $45 $6,660 10.0 8 $50 $4,000 84.0 8 $35 $23,520 85.0 8 $30 $20,400 0.0 8 $15 $0 199.5 $55,780 $2,500 $2,500 $166,782 $2,625 3 Trips @ $750 / Trip $2,250 $1,000 $3,250 2. Greeley and Hansen Labor Costs with 2.99 Multiplier 3. Other Direct Costs a. Airfare/ Travel 1 Trip @ $750 / Trip 4. Subtotal - Bid Assistance Total Compensation (Rounded) $172,657 $7,834 $750 $8,584 $358,000 Page 2 of 2 Estimated Days Hours /Day Rates Cost 0.0 8 $75 $0 3.0 8 $45 $1,080 0.0 8 $50 $0 4.0 8 $35 $1,120 1.0 8 $30 $240 1.5 8 $15 $180 9.5 $2,620 2. Greeley and Hansen Labor Costs with 2.99 Multiplier 3. Other Direct Costs a. Airfare/ Travel 1 Trip @ $750 / Trip 4. Subtotal - Bid Assistance Total Compensation (Rounded) $172,657 $7,834 $750 $8,584 $358,000 Page 2 of 2 ATTACHMENT D AGREEMENT FOR PROFESSIONAL SERVICES between CITY OF OWASSO, OKLAHOMA and GREELEY AND HANSEN LLC East 76th Street North Sanitary Sewer Interceptor MAN -HOUR BREAKDOWN Totals 2.5 36.0 11.0 126.5 101.0 3.5 280.5 Page 1 of 1 Estimated Workdays Project Senior Project Designer Word Task Description Principal Manager Engineer Engineer /CAD Oper Processor Totals 1.0 PRELIMINARY ENGINEERING REPORT 1.1 Progress Meetings 0.0 2.0 0.0 2.5 0.0 0.0 4.5 1.2 Gather Basic Data 0.0 0.5 0.0 2.0 0.0 0.0 2.5 1.3 Summarize Basic Data for Service Area 0.0 1.0 0.0 2.0 0.0 0.0 3.0 1.4 Alternatives Evaluation 0.0 1.0 0.0 4.0 2.0 0.0 7.0 1.5 Environmental Information Document 0.0 2.0 1.0 10.0 5.0 0.0 18.0 1.6 Project Implementation 0.0 0.5 0.0 1.0 0.0 0.0 1.5 1.7 Public Participation 0.0 1.0 0.0 2.0 0.0 0.0 3.0 1.8 Preliminary Engineering Report 0.5 2.0 0.0 5.0 4.0 2.0 13.5 Subtotal - PER 0.5 10.0 1.0 28.5 11.0 2.0 53.0 2.0 PRELIMINARY DESIGN 2.1 Aerial Survey & Mapping 0.0 1.0 0.0 2.0 2.0 0.0 5.0 2.2 Utilities & ROW Survey 0.0 1.0 0.0 2.0 2.0 0.0 5.0 2.3 Geotechnical Report 0.0 1.0 0.0 2.0 0.0 0.0 3.0 2.4 Easement Requirements 0.0 1.0 0.0 2.0 0.0 0.0 3.0 2.5 Preliminary Cost Opinion 0.0 0.5 0.0 2.0 0.0 0.0 2.5 Subtotal - Preliminary Design 0.0 4.5 0.0 10.0 4.0 0.0 18.5 3.0 FINAL DESIGN 3.1 Drawings (35 total drawings) 1.0 10.0 10.0 60.0 85.0 0.0 166.0 3.2 Specifications 1.0 5.0 0.0 15.0 0.0 0.0 21.0 3.3 Final Cost Opinion 0.0 1.0 0.0 2.0 0.0 0.0 3.0 3.4 Legal Descriptions 0.0 0.5 0.0 2.0 0.0 0.0 2.5 3.5 Permit Applications 0.0 2.0 0.0 5.0 0.0 0.0 7.0 Subtotal - Final Design 2.0 18.5 10.0 84.0 85.0 0.0 199.5 4.0 BID ASSISTANCE 4.1 Bidder Inquiries 0.0 1.0 0.0 2.0 0.0 0.0 3.0 4.2 Addenda 0.0 0.5 0.0 1.0 1.0 0.5 3.0 4.3 Pre -Bid Meeting 0.0 1.0 0.0 0.0 0.0 0.5 1.5 4.4 Bid Report 0.0 0.5 0.0 1.0 0.0 0.5 2.0 Subtotal - Bid Assistance 0.0 3.0 0.0 4.0 1.0 1.5 9.5 Totals 2.5 36.0 11.0 126.5 101.0 3.5 280.5 Page 1 of 1 Amendment to the Agreement for Engineering Services Owasso Public Works Authority City of Owasso, Oklahoma EAST 76 STREET NORTH SANITARY SEWER INTERCEPTOR Schedule Attachment E SCHEDULE: The design of the Wastewater Treatment Plant and the 117th Pump Station Expansion will be conducted in a single phase. It is anticipated that the project will require approximately thirteen months to complete. The schedule below illustrates a start date of August 2008 and an approximate completion date of April 2008. Actual start date will be 14 days from Notice to Proceed by the AUTHORITY. The schedule is as follows: • Notice to Proceed is provided to Greeley and Hansen from the City of Owasso - August 2008. • Project Start Date - August 2008. • Complete Design Process - February 2009. • DPW Review - February 2009. • Advertisement for Bids Date - March 2009. • Receive Bids - April, 2009. PW_ATTACHMENT E (SCHEDULE) (2).DOC I GREELEYANO HANSEN y 2000 0 2000 4000 FT II........I 1 I 1" =2000' EAST 76TH STREET NORTH SANITARY SEWER INTERCEPTOR BASIN BOUNDARY col \♦ ^I I LINE 'F' E 76TH N I \ 1--- - - - - -- r- --- -- --- - - - -?� - - -- - - - -- a w I I LINE 'C' I LINE 'H' LINE 'E' t I 'B' M I LINE EXISTING 21" ELM CREEK I - I I LINE 'D' 7 Z INTERCEPTOR -/ - - - - - - - - - - I 'G' uj a LINE / LINE 'A' w o � rn I _ Z I E 66TH N 7 —__� ri V PRELIMINARY SEWER DESIGN SUMMARY \ LINE LENGTH OF LINE \ LINE 'A' 12,500 LF OF 24 ", 27" \ LINE 'B' 5,510 LF OF 21" \ LINE 'C' 520 LF OF 15" \ LINE '0' 580 LF OF 12" \ LINE 'E' 5,040 LF OF 10" \ LINE 'F' 2,030 LF OF 10" \ LINE 'G' 1,300 LF OF 12" 'H' \ LINE 1,820 LF OF 10" \ WESTERN SEGMENT \ EASTERN SEGMENT I GREELEYANO HANSEN y 2000 0 2000 4000 FT II........I 1 I 1" =2000' EAST 76TH STREET NORTH SANITARY SEWER INTERCEPTOR MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO THE HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: JULIE TROUT LOMBARDI GENERAL COUNSEL SUBJECT: PROPOSED DEVELOPMENT AGREEMENT BETWEEN THE OPWA, MORROW INVESTMENT CAPITAL, L.L.C. AND MORROW PLACE INVESTMENT GROUP, L.L.C. DATE: August 15, 2008 BACKGROUND: Morrow Investment Capital, L.L.C. and Morrow Place Investment Group, L.L.C. (collectively "Morrow ") acquired an ownership interest several years ago in an 80 acre tract located west of the intersection of U.S. Highway 169 and 116th St. North in Owasso. Morrow and its affiliates intend to develop the tract as a commercial retail center (the "Project "). The Project will require construction of street, utility, service road and storm sewer improvements as a part of its development. Plans for the service road and storm sewer improvements (including detention to the extent that such improvements relate to the proposed service road) have been reviewed and approved by the City and the OPWA. Recognizing that neither the City nor the OPWA currently has funds sufficient to pay the entirety of costs needed to construct both the storm sewer and service road improvements, and further recognizing that the Project is expected to generate substantial new sales tax revenues for the City, the City, the OPWA and Morrow propose to mutually execute a Development Agreement whereby Morrow agrees to pay for the construction of the storm sewer and service road improvements and the OPWA subsequently reimburses Morrow for those costs. Reimbursement to Morrow under the proposed Agreement would be made in monthly installments in an amount equal to one -half cent of the City sales tax generated by businesses located within the Development Area and the Morrow Property. Revenue from any business operating within the City of Owasso at the time the Development Agreement is executed which subsequently relocates in the Development Area shall not be included in the computed payback. This exception notwithstanding, however, sales tax revenue generated by a business existing and operating within Owasso at the time the Development Agreement is executed which thereafter constructs an additional store or business within the Development Area (e.g., Walgreen's, McDonalds) shall be included within the monthly computed payback amount. The estimated cost for construction of the service road and storm sewer improvements for which Morrow will be entitled to reimbursement under the Development Agreement is $536,247.20. The reimbursement amount payable to Morrow shall not exceed this amount. This amount includes payment for 28,749.60 square feet of land which will be dedicated to the City by Morrow for the 116th Street Road Improvements. Construction of all proposed service road and storm sewer improvements must be publicly bid by Morrow in compliance with the Public Competitive Bidding Act contained in Title 61 of the Oklahoma Statutes. Failure to comply with the Act's provisions shall negate Morrow's right to receive reimbursement from either the City or the OPWA for the proposed public improvements. The life of the Development Agreement shall be limited to fifteen (15) years, and the Agreement shall automatically terminate fifteen (15) years after the date the Agreement is executed even if the total cost of the public improvements has not been fully reimbursed to Morrow. Reimbursements to Morrow shall begin only after each of the following has occurred: 1. Ninety (90) days after a business is opened within any part of the Development Property, 2. Sales Tax Revenue is being generated by any portion of the Development Property, 3. Sales Tax Revenue for the initial ninety (90) day period has been received by the City from Oklahoma Tax Commission, and 4. The accrued amount of the payback to Morrow has reached $300,000. Installment payments shall be made to Morrow by the OPWA on a monthly basis within sixty (60) days from the date the City receives the required documentation from the Oklahoma Tax Commission. RECOMMENDATION: Staff recommends City and OPWA approval of the proposed Development Agreement and City Council approval of the indebtedness of the OPWA in the amount of $536,247.20 as set forth in the Agreement. ATTACHMENTS: Proposed Development Agreement DEVELOPMENT AGREEMENT (MORROW DEVELOPMENT) THIS DEVELOPMENT AGREEMENT ( "Agreement ") is made and entered into effective as of , 2008 by and between OWASSO PUBLIC WORKS AUTHORITY, an Oklahoma public trust ( "Authority ") and MORROW INVESTMENT CAPITAL, L.L.C., an Oklahoma limited liability company, and MORROW PLACE INVESTMENT GROUP, L.L.C., an Oklahoma limited liability company (collectively, "MORROW "). RECITALS A. MORROW and its affiliates have acquired ownership interest in that certain property consisting of approximately 80 acres and situated West of the intersection of Highway 169 and North of 116th Street North in Owasso, Oklahoma ( "Property ") for the development of a commercial retail center (the "Project "), which property is more fully described and depicted on Exhibit "A" attached hereto. B. This Agreement is being entered into with the expectation that the new Project proposed to be undertaken (or being undertaken) by, or facilitated by, MORROW in Owasso, Oklahoma, will generate substantial new sales tax revenues for the City of Owasso (the "City "). C. MORROW's Project reasonably requires significant land dedications, street improvements (the plans and specifications for which have been prepared by the Authority and reviewed and approved by the City and the Authority) and certain utility, service road and storm sewer improvements (including Detention, but only to the extent that such storm sewer improvements relate to the service road), the plans of which have been prepared by MORROW and reviewed and approved by the City and the Authority, and that neither the City nor the Authority has sufficient current funds to pay the costs thereof at this time. D. Within and subject to the constraints of applicable State law, the City and the Authority have represented that in the event MORROW undertakes to effect and pay the costs of such utility, service road and storm sewer improvements, the Authority will cause MORROW to be reimbursed for such costs. E. The Authority's sources for funding such reimbursements will be either from its surplus revenues or expected funding to be derived from either (i) a City sales tax -based revenue bond issue on the City's current (capital improvements) sales tax of approximately three percent (3.0 %); and /or (ii) 1 sufficient annual appropriations or equivalent allocations by the City to the Authority of amounts, payable in monthly installments, equal to one -half cent of such City sales taxes as are collected from businesses or operations situated on (A) any of the "Development Area" described in Exhibit "B" hereto, (B) the MORROW Property. The Project and the Development Area are herein collectively referred to as the "Development Properties ". However, no business or operation existing in Owasso at the time this Agreement is executed which subsequently relocates in the Development Area from an existing developed area in Owasso shall be included in the computed payback. Notwithstanding anything herein to the contrary, a business or operation existing in Owasso (e.g., Walgreen's, McDonald's, etc.) which constructs another store or operation in the Development Area shall be included in the computed payback. F. The parties acknowledge that the City cannot obligate itself (i) to appropriate or otherwise allocate any existing or future City sales tax or other moneys to the Authority in any future fiscal year other than on a current fiscal year basis, or (ii) to commit to the Authority that it will facilitate any future bond issue of the Authority, the repayment of which is in whole or in part based on appropriations or allocations of any City sales taxes. G. The parties acknowledge that the City, within and subject to the constraints of applicable State law, has indicated its willingness to express and by these presents does hereby express its reasonable expectations and intentions of undertaking all such actions as may be reasonably necessary to accommodate and facilitate the Authority's performance of this Agreement as set forth above, and through its approval of this Agreement as an incurrence of indebtedness by a public trust of which it is sole beneficiary, and through a Resolution separately adopted concurrently herewith, the City has affirmed such willingness. H. Based on the foregoing, in connection with the Project, MORROW has agreed to construct or cause to be constructed certain public improvements relating to the City's utility, storm sewer (including Detention but only to the extent that such improvements relate to the proposed service road) and roadway systems and facilities (the "Public Improvements "), all as more fully described later in this Agreement and the Authority has determined it would be most advantageous at this time for the Authority to reimburse MORROW for the costs of said Public Improvements pursuant to the terms and conditions set forth below. I. In connection with the development of the Project, the parties desire to more specifically outline the scope, projected cost, time line and project engineering and coordination associated with construction of the Public Improvements. 2 NOW, THEREFORE, in consideration of their respective covenants and conditions herein expressed, the Authority and MORROW agree as follows: 1. Public Improvements. The Public Improvements are generally described as follows, and are more particularly designated or described on the improvement plans for each portion of the Public Improvements prepared by Khoury Engineering, Inc., and set forth on Exhibit "C" attached hereto (the "Public Improvement Plans "). a. MORROW will design and construct storm sewer lines in the existing and /or to be created storm sewer easement more fully described and depicted on Exhibit "E" attached hereto (Storm Sewer Improvements). The City and Authority shall have oversight and design approval of all Public Improvements to be constructed by MORROW. b. MORROW will obtain, file and furnish the necessary right of way dedications to the City as more particularly provided in Section 2 below, and will design and construct that portion of the service road improvements lying north of East 116th Street North, as described and depicted on Exhibit "F" attached hereto ( "116th Street Service Road Improvements "). C. As more particularly provided in Paragraph 3 below, CITY will calculate the reimbursement amount due MORROW based on information obtained by CITY from the Oklahoma Tax Commission. In the event MORROW disputes the reimbursement amount calculated by CITY, CITY agrees to cooperate with MORROW to obtain a release from each business or operator locating within the Development Area so that Morrow may facilitate the release of itemized sales tax information regarding such company or organization within the Development Area from the Oklahoma Tax Commission in order for the parties to determine the exact reimbursement amount due to MORROW. Notwithstanding anything herein to the contrary, either parties' failure to obtain such release or such itemized sales tax information shall not be a default of this Agreement or otherwise condition, restrict or prohibit payback. MORROW has caused its engineer to submit to the Authority the proposed engineering plans and specifications with respect to the Storm Sewer Improvements and the 116th Street Service Road Improvements, including the electronic format compatible with AutoCad. The Authority and the City have approved the Public Improvement Plans, and MORROW agrees to construct the Public Improvements as described in the Public Improvement Plans within the time frames set forth in the Public Improvement Plans. The cost estimate for the Public Improvements is $536,247.20, as more specifically itemized on Schedule "1" attached hereto. The reimbursement amount payable to 3 MORROW shall not exceed this amount. MORROW, or its Contractor for said Public Improvements, will post a Performance Bond and a Statutory Bond, or other satisfactory collateral, for said Public Improvements with the City prior to the start of construction. All design and construction undertaken by MORROW shall be consistent with all City codes and ordinances as well as any other regulations or plans relative to the Public Improvements. MORROW shall initially pay all costs incurred for the design and construction of the Public Improvements. MORROW shall receive reimbursement for actual costs incurred for that portion of the design work for which MORROW is responsible and for the construction of the 116`h Street Service Road Improvements, including the cost of any required Performance Bonds, Statutory Bonds and Maintenance Bonds as set forth below in Section 3. MORROW is aware that all construction of the Public Improvement Plans must be competitively bid and are required to be in compliance with all Oklahoma competitive bidding statutes. If Morrow does not comply with those bidding statutes, the Authority and the City shall not reimburse MORROW for any portion of the Public Improvements. MORROW hereby agrees to have one (1) employee of the Authority or City present when the bids are opened. The life of this Agreement shall be fifteen (15) years, and the Agreement shall automatically terminate fifteen (15) years after the date of execution of this document even if the cost of the Public Improvements set forth in this Agreement has not been fully reimbursed to MORROW. All Public Improvements shall be subject to the Authority's inspection and approval upon completion. Prior to receipt of the reimbursement described in Section 3 below, and subsequent to completion of the Public Improvement Projects and the requisite acceptance by the City, MORROW shall cause to be prepared, executed and delivered any and all appropriate legal documentation, including, but not limited to, assignments, bills of sales, deeds, easements or grants, reasonably necessary to convey unto the Authority, or its assignee(s), all of MORROW's right, title and interest in and to the Public Improvements free and clear of any and all claims, demands, encumbrances, liens, or interests of others which do or might impair the title of the Authority, or its assignee(s), in and to the Public Improvements. The Authority agrees to accept the Public Improvements if constructed in full compliance with the Public Improvement Plans. Upon completion and acceptance of any public improvement to the satisfaction of the Authority, the Authority will recommend final acceptance by the City. It is understood that each portion of the Public Improvements described in Exhibit "C" may be completed at a different time. Each portion of the Public Improvements will be deemed accepted if not rejected in writing within forty -five (45) days of delivery by MORROW to the Authority of a notice of completion as to that portion of the Public Improvements. Upon acceptance of each portion of the Public Improvements by the Authority, but prior to acceptance by the City, MORROW or its contractor shall post a one (1) year maintenance bond for the each portion of the Public Improvements (the "Maintenance Bonds "). After the respective maintenance bond periods, the Authority shall assume responsibility for maintenance of each portion of the Public Improvements. in 2. Rights of Way, Utility Easements and Construction Easements. MORROW agrees to furnish the legal description for any necessary right -of -way and utility easements to the Authority. The Authority agrees that it will obtain, file and furnish the necessary right of way dedications and temporary construction easements for the construction of the Public Improvements. The City, by its acknowledgment below, agrees to pay MORROW Seven Dollars ($7.00) per square foot for that portion of the Property in which MORROW is required to dedicate to the City for the 116th Street Service Road Improvements, and that it shall cooperate with MORROW and the Authority to assist in completion of the Public Improvements in accordance with this Agreement. The parties agree that the area to be dedicated to the City for the 116th Street Road Improvements consists of approximately 28,749.60 square feet and that the payment for such dedication will be $201,247.20 which is included in the Schedule "1" aggregate amount. All actual costs and expenses, including acquisition costs, to obtain the above rights of way and temporary construction easements shall be paid pursuant to the terms of this Agreement, including (without limitation) Section 3 below. 3. Reimbursement of Costs for Public Improvements. The parties agree that the engineer's preliminary estimate of the total anticipated, estimated costs of providing and developing all of the Public Improvements is $536,247.20, as is more fully set forth on Schedule "1 ", which MORROW shall be entitled to reimbursement. Such schedule represents the parties' good faith estimate of the projected costs associated with the construction of the Public Improvements. The expenses to be reimbursed are solely for the actual cost of construction (not including overhead) of the Public Improvements, design of the Storm Sewer Improvements and the 110h Street Service Road Improvements, and any required Performance Bonds and Statutory Bonds, but not Maintenance Bonds. Upon completion and acceptance of each portion of the Public Improvements as contemplated by this Agreement, MORROW shall provide certified (by an authorized representative of MORROW) figures to the Authority of the actual costs of that portion of the Public Improvements. Upon receipt thereof, the Authority, upon ten (10) days written notice to MORROW, shall be authorized and allowed to audit and examine, at City Hall, City of Owasso, 111 N. Main, Owasso, Oklahoma, at reasonable times, any and all supportive documentation possessed by MORROW, its agents, officers, employees and/or independent contractors, reasonably necessary and related to the certified figures of the actual costs of that portion of the Public Improvements. MORROW shall be reimbursed for the cost of design, construction and bonding of the Public Improvements set forth on Schedule "1" as follows: a. The Public Improvements shall be paid by the Authority to MORROW in installments of an amount calculated to equal the rate of one -half (1/2) of one cent of retail sales tax collected by the City from the retail sales within the Development Area. The parties understand that the reimbursement to MORROW shall begin only upon occurrence of each of the following: i) ninety (90) days after a store opens in any portion 5 of the Development Properties, ii) any portion of the Development Properties has begun generating retail sales tax revenue for the City, and (iii) sales tax revenue for the initial ninety (90) day period is received by the City from the Oklahoma Tax Commission, and (iv) the accrued amount of the payback reaches Three Hundred Thousand Dollars ($300,000). The installment payment shall be made by the Authority on a monthly basis within sixty (60) days after the date the City receives the sales tax receipts from the Oklahoma Tax Commissioner for any retail sales at any portion of the Development Properties. 4. Revision to the "Limits of No Access" Designation. The Authority agrees to request a reduction of the "limits of no access" designation from the Oklahoma Department of Transportation so that a curb cut can be located on East 116th Street North to provide access for the southeastern portion of the MORROW property. 5. Remedies. In the event of any default in or breach of any terms or conditions of this Agreement by any party, or any successor, the defaulting or breaching party shall, upon written notice from the other party, proceed immediately to cure or remedy such default or breach, and shall in any event, within thirty (30) days after receipt of notice, commence to cure or remedy such default. In case such cure or remedy is not taken or not diligently pursued, or the default or breach shall not be cured or remedied within a reasonable time, the aggrieved party may institute such proceedings as may be necessary or desirable in its opinion to cure and remedy such default or breach, including but not limited to proceedings to compel specific performance by the defaulting or breaching party. The parties, their successors and assigns, further agree that the other party shall have the right and power to institute and prosecute proceedings to enjoin the threatened or attempted violation of any clauses contained herein. 6. Miscellaneous. a. Inspection. To the extent within MORROW'S control, MORROW shall allow the Authority, or their authorized representatives, to access the Public Improvements to inspect the work at any time. b. Choice of Law. This Agreement shall be taken and deemed to have been fully executed and made by the parties herein and governed by the laws of the State of Oklahoma for all purposes and intents. C. Entire Agreement. The parties agree that this Agreement constitutes the entire agreement between the parties and that no other agreements or representations other than those contained in this Agreement have been made by the parties. This Agreement shall be amended only in writing, and effective when signed by the authorized agents of the parties. C� d. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall constitute one and the same instrument. e. Severability. In the event that any term or provision or this Agreement is held to be unenforceable by a court of competent jurisdiction, the remainder shall continue in full force and effect to the extent the remainder can be given effect without the invalid provision. f. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, heirs and assigns. g. Costs. In the event of a dispute relating to the matters set forth herein, the prevailing party shall be entitled to reimbursements for all reasonable attorneys' fees and expenses incurred in connection therewith. h. Notices. Any notice, request or demand provided for in this Agreement shall be deemed to have been sent notice when the notice has been delivered by personal delivery, overnight mail or delivery service, facsimile or deposited in the United States mail, registered or certified, with postage thereon prepaid to the addresses as set forth below. Notice shall be deemed received upon the earlier of. (1) if personally delivered (whether by courier or overnight private mail or delivery services), the date of delivery; (ii) if mailed, three (3) business days after the date of posting by the United States post office; or (iii) if given by facsimile when sent. The parties' addresses are as follows: To the Authority: Owasso Public Works Authority 111 North Main Street Owasso, Oklahoma 74055 Fax No. 918.272.49116 To the City: City of Owasso 111 North Main Street Owasso, Oklahoma 74055 Attention: Rodney Ray Fax No. 918.376.1599 To MORROW: Morrow Place Investment Group, L.L.C. 12150 E. 96th Street North, Suite 200 Owasso, Oklahoma 74055 Attn: Pete Kourtis Fax No. 918.272.5376 i. Authority. This Agreement shall become a binding obligation upon execution by all parties hereto. The Authority warrants and represents that the individual executing this Agreement on behalf of the Authority has full authority to execute this 7 Agreement and bind the Authority to the same. The Authority further warrants and represents that this Agreement is valid and enforceable under applicable law and the Authority's public trust documents, and that the Authority has taken all requisite action necessary to approve this Agreement. MORROW warrants and represents that the individual executing this Agreement on its behalf has full authority to execute this Agreement and bind MORROW to the same. MORROW further warrants and represents that this Agreement is valid and enforceable under applicable law and MORROW's corporate documents, and that MORROW has taken all requisite action necessary to approve this Agreement. The City, by its acknowledgement below, warrants that the City Resolution(s) attached hereto as Exhibit "D" authorizing the construction of the Public Improvements and work and undertakings related thereto, including the execution of this Agreement, have all been duly authorized by proper and legal action taken by the City of Owasso, Oklahoma. j. Force Majeure. If an event of force majeure occurs, the time for performance of the obligations under this Agreement, other than the payment of sums due, shall be extended for the duration of the event of force majeure. An event of force majeure shall mean any contingency or cause beyond the reasonable control of a party including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, government or de facto governmental actions (unless caused by the intentionally wrongful acts or omissions of the party), fires, explosions, floods, strikes, slowdowns or work stoppages. Inability to pay is not an event of force majeure. IN WITNESS WHEREOF the parties have executed this instrument to be effective as of the day and year first above written. (SEPARATE SIGNATURE PAGES FOLLOW) (Remainder of Page Intentionally Left Blank) t SEPARATE SIGNATURE PAGE OF THE AUTHORITY OWASSO PUBLIC WORKS AUTHORITY an Oklahoma Public Trust Name: Title: Signed as of the effective date on page 1. ACKNOWLEDGED AND APPROVED as to form this day of , 2008, by the City of Owasso, Oklahoma. CITY OF OWASSO By: Name: Attested to By: By Name: City Clerk SEPARATE SIGNATURE PAGE OF MORROW MORROW PLACE INVESTMENT GROUP, L.L.C. Pete Kourtis, Manager Signed as of the effective date on page 1. MORROW INVESTMENT CAPITAL, L.L.C. C Kathleen Morrow Antoniadis, Manager By: Frank Morrow, Manager Signed as of the effective date on page 1. EXHIBIT "A" LEGAL DESCRIPTION THE MORROW PROPERTY PART OF THE SW /4 SECTION 4, T -21 -N R -14 -E MORROW PLACE 80 Acre Commercial Tract Description (Southerly tract) A TRACT OF LAND THAT IS A PART OF THE SOUTHWEST QUARTER (SW /4) OF SECTION FOUR (4), TOWNSHIP TWENTY -ONE (21) NORTH, RANGE FOURTEEN (14) EAST, OF THE INDIAN MERIDIAN, TULSA COUNTY, STATE OF OKLAHOMA, SAID TRACT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID SW /4 OF SECTION 4; THENCE NORTH 1 028'15" WEST ALONG THE WESTERLY LINE OF SECTION 4, FOR A DISTANCE OF 750.00 FEET TO A POINT; THENCE NORTH 88 031'45" EAST AND PERPENDICULAR TO SAID WESTERLY LINE, FOR A DISTANCE OF 93.53 FEET TO A POINT OF CURVATURE; THENCE ALONG A 430.00 FOOT RADIUS CURVE TO THE RIGHT, HAVING A CENTRAL ANGLE OF 46 028'15 ", FOR AN ARC DISTANCE OF 348.76 FEET TO A POINT OF TANGENCY; THENCE SOUTH 45 000'00" EAST FOR A DISTANCE OF 83.87 FEET TO A POINT OF CURVATURE; THENCE ALONG A 600.00 FOOT RADIUS CURVE TO THE LEFT, HAVING A CENTRAL ANGLE OF 45 000'00 ", FOR AN ARC DISTANCE OF 471.24 FEET TO A POINT OF TANGENCY; THENCE NORTH 90 000'00" EAST FOR A DISTANCE OF 310.63 FEET TO A POINT; THENCE NORTH 10 000'00" EAST FOR A DISTANCE OF 275.89 FEET TO A POINT; THENCE NORTH 20 000'00" EAST FOR A DISTANCE OF 195.00 FEET TO A POINT ON THE WESTERLY LINE OF THE EAST HALF OF THE SOUTHWEST QUARTER (E /2 SW /4) OF SECTION 4; THENCE NORTH 1026'09" WEST ALONG SAID WESTERLY LINE, FOR A DISTANCE OF 1,825.00 FEET TO A POINT, SAID POINT BEING THE NORTHWEST CORNER OF SAID E/2 SWA; THENCE NORTH 88 047'03" EAST ALONG THE NORTHERLY LINE OF THE E/2 SW /4, FOR A DISTANCE OF 1,149.16 FEET TO A POINT ON THE WESTERLY RIGHT -OF -WAY LINE OF U.S. HIGHWAY 169; THENCE ALONG SAID RIGHT -OF -WAY LINE FOR THE FOLLOWING TEN (10) COURSES: SOUTH 1 018'02" EAST FOR A DISTANCE OF 1,173.29 FEET TO A POINT; THENCE SOUTH 2 °04'52" WEST FOR A DISTANCE OF 602.60 FEET TO A POINT; THENCE SOUTH 12 °12'21" WEST FOR A DISTANCE OF 342.01 FEET TO A POINT OF CURVATURE; THENCE ALONG A 1,220.92 FOOT RADIUS CURVE TO THE LEFT, HAVING A CENTRAL ANGLE OF 13 °27'46 ", FOR AN ARC DISTANCE OF 286.88 FEET TO A POINT OF TANGENCY; THENCE SOUTH 1 °15'26" EAST FOR A DISTANCE OF 100.00 FEET TO A POINT; THENCE SOUTH 88 °44'34" WEST FOR A DISTANCE OF 225.00 FEET TO A POINT; THENCE SOUTH 85 °52'50" WEST FOR A DISTANCE OF 500.62 FEET TO A POINT; THENCE SOUTH 74 °4224" WEST FOR A DISTANCE OF 103.08 FEET TO A POINT; THENCE SOUTH 88 °44'34" WEST FOR A DISTANCE OF 168.86 FEET TO A POINT ON THE WESTERLY LINE OF THE E/2 SW /4; THENCE SOUTH 1 °26'09" EAST ALONG SAID WESTERLY LINE, FOR A DISTANCE OF 100.00 FEET TO A POINT, SAID POINT BEING THE SOUTHWEST CORNER OF THE E/2 SW /3; THENCE SOUTH 88 °44'34" WEST ALONG THE SOUTHERLY LINE OF THE W/2 OF SECTION 4, FOR A DISTANCE OF 1,318.94 FEET TO THE POINT OF BEGINNING; SAID TRACT CONTAINING 3,484,786 SQUARE FEET, OR 80.000 ACRES. EXHIBIT "B" DEVELOPMENT AREA (City of Owasso, Oklahoma) Part of the W/2 Section 4, T -21 -N R -14 -E Morrow Place Tract D Description A TRACT OF LAND THAT IN TWO (2) PARTS, BEING A PART OF THE WEST HALF (W /2) OF SECTION FOUR (4), TOWNSHIP TWENTY -ONE (21) NORTH, RANGE FOURTEEN (14) EAST, OF THE INDIAN MERIDIAN, TULSA COUNTY, STATE OF OKLAHOMA, SAID TRACT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: PART D -1: COMMENCING AT THE NORTHWEST CORNER OF GOVERNMENT LOT THREE (3), OF SAID SECTION 4; THENCE SOUTH 1'26'23" EAST ALONG THE WESTERLY LINE OF SAID GOVERNMENT LOT 3 AND THE WESTERLY RIGHT - OF -WAY LINE OF U.S. HIGHWAY 169, FOR A DISTANCE OF 50.00 FEET TO A POINT; THENCE NORTH 88 °56'45" EAST AND CONTINUING ALONG SAID RIGHT -OF -WAY LINE, FOR A DISTANCE OF 227.00 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING NORTH 88 °5645" EAST AND ALONG THE RIGHT -OF -WAY LINE, FOR A DISTANCE OF 130.42 FEET TO A POINT; THENCE SOUTH 84 050'06" EAST AND CONTINUING ALONG THE RIGHT -OF -WAY LINE, FOR A DISTANCE OF 230.26 FEET TO A POINT; THENCE SOUTH 1 °25'13" EAST AND CONTINUING ALONG THE RIGHT -OF -WAY LINE, FOR A DISTANCE OF 515.00 FEET TO A POINT; THENCE SOUTH 88 °34'47" WEST FOR A DISTANCE OF 37.65 FEET TO A POINT OF CURVATURE; THENCE ALONG A 325.00 FOOT RADIUS CURVE TO THE RIGHT, HAVING A CENTRAL ANGLE OF 36 °00'47 ", FOR AN ARC DISTANCE OF 204.28 FEET TO A POINT OF TANGENCY; THENCE NORTH 55 024'26" WEST FOR A DISTANCE OF 86.26 FEET TO A POINT OF CURVATURE; THENCE ALONG A 50.00 FOOT RADIUS CURVE TO THE LEFT, HAVING A CENTRAL ANGLE OF 36 001'59 ", FOR AN ARC DISTANCE OF 31.44 FEET TO A POINT OF TANGENCY; THENCE SOUTH 88 °33'35" WEST FOR A DISTANCE OF 32.07 FEET TO A POINT; THENCE NORTHERLY ALONG A 300.00 FOOT RADIUS CURVE TO THE LEFT, HAVING AN INITIAL TANGENT BEARING OF NORTH 3 012'34" EAST, A CENTRAL ANGLE OF 4 °38'57 ", FOR AN ARC DISTANCE OF 24.34 FEET TO A POINT OF TANGENCY; THENCE NORTH 1 026'25" WEST FOR A DISTANCE OF 395.55 FEET TO THE POINT OF BEGINNING; SAID TRACT CONTAINING 174,235 SQUARE FEET, OR 4.000 ACRES; F.110 PART D -2: BEGINNING AT THE SOUTHWEST CORNER OF SAID W/2 OF SECTION 4; THENCE NORTH 1028'15" WEST ALONG THE WESTERLY LINE OF SECTION 4, FOR A DISTANCE OF 750.00 FEET TO A POINT; THENCE NORTH 88 °31'45" EAST AND PERPENDICULAR TO SAID WESTERLY LINE, FOR A DISTANCE OF 93.53 FEET TO A POINT OF CURVATURE; THENCE ALONG A 430.00 FOOT RADIUS CURVE TO THE RIGHT, HAVING A CENTRAL ANGLE OF 46 °28'15 ", FOR AN ARC DISTANCE OF 348.76 FEET TO A POINT OF TANGENCY; THENCE SOUTH 45 000'00" EAST FOR A DISTANCE OF 83.87 FEET TO A POINT OF CURVATURE; THENCE ALONG A 600.00 FOOT RADIUS CURVE TO THE LEFT, HAVING A CENTRAL ANGLE OF 45 °00'00 ", FOR AN ARC DISTANCE OF 471.24 FEET TO A POINT OF TANGENCY; THENCE NORTH 90 000'00" EAST FOR A DISTANCE OF 310.63 FEET TO A POINT; THENCE NORTH 10 000'00" EAST FOR A DISTANCE OF 275.89 FEET TO A POINT; THENCE NORTH 20 °00'00" EAST FOR A DISTANCE OF 195.00 FEET TO A POINT ON THE WESTERLY LINE OF THE EAST HALF OF THE SOUTHWEST QUARTER (E /2 SW /4) OF SECTION 4; THENCE NORTH 1026'09" WEST ALONG SAID WESTERLY LINE, FOR A DISTANCE OF 1,825.00 FEET TO A POINT, SAID POINT BEING THE NORTHWEST CORNER OF SAID E/2 SW /4; THENCE NORTH 88 °47'03" EAST ALONG THE NORTHERLY LINE OF THE E/2 SW /4, FOR A DISTANCE OF 1,149.16 FEET TO A POINT ON THE WESTERLY RIGHT -OF -WAY LINE OF U.S. HIGHWAY 169; THENCE ALONG SAID RIGHT -OF -WAY LINE FOR THE FOLLOWING TEN (10) COURSES: SOUTH 1 °18'02" EAST FOR A DISTANCE OF 1,173.29 FEET TO A POINT; THENCE SOUTH 2 004'52" WEST FOR A DISTANCE OF 602.60 FEET TO A POINT; THENCE SOUTH 12 012'21" WEST FOR A DISTANCE OF 342.01 FEET TO A POINT OF CURVATURE; THENCE ALONG A 1,220.92 FOOT RADIUS CURVE TO THE LEFT, HAVING A CENTRAL ANGLE OF 13 °27'46 ", FOR AN ARC DISTANCE OF 286.88 FEET TO A POINT OF TANGENCY; THENCE SOUTH 1 015'26" EAST FOR A DISTANCE OF 100.00 FEET TO A POINT; THENCE SOUTH 88 044'34" WEST FOR A DISTANCE OF 225.00 FEET TO A POINT; THENCE SOUTH 85 °52'50" WEST FOR A DISTANCE OF 500.62 FEET TO A POINT; THENCE SOUTH 74 °42'24" WEST FOR A DISTANCE OF 103.08 FEET TO A POINT; THENCE SOUTH 88 04434" WEST FOR A DISTANCE OF 168.86 FEET TO A POINT ON THE WESTERLY LINE OF THE E/2 SW /4; THENCE SOUTH 1 °26'09" EAST ALONG SAID WESTERLY LINE, FOR A DISTANCE OF 100.00 FEET TO A POINT, SAID POINT BEING THE SOUTHWEST CORNER OF THE E/2 SW /3; THENCE SOUTH 88 °44'34" WEST ALONG THE SOUTHERLY LINE OF THE W/2 OF SECTION 4, FOR A DISTANCE OF 1,318.94 FEET TO THE POINT OF BEGINNING; SAID TRACT CONTAINING 3,484,786 SQUARE FEET, OR 80.000 ACRES; THE COMBINED TRACTS CONTAINING 3,659,021 SQUARE FEET, OR 84.000 EXHIBIT "C" (PUBLIC IMPROVEMENT PLANS) EXHIBIT "D" CITY OF OWASSO, OKLAHOMA RESOLUTIONS EXHIBIT "E" STORM SEWER EASEMENT EXHIBIT "F" 116TH STREET SERVICE ROAD IMPROVEMENTS SCHEDULE "I" (ESTIMATED COSTS OF PUBLIC IMPROVEMENTS) 116' STREET SERVICE ROAD IMPROVEMENTS $501,247.20 STORM SEWER IMPROVEMENTS $35,000.00 PLUS COSTS OF PERFORMANCE AND STATUTORY (BUT NOT MAINTENANCE BONDS) TO BE INCLUDED IN REIMBURSEMENTS