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HomeMy WebLinkAboutMou Related to Project Change/ENG/2024 Lease Rental BondsMEMORANDUM OF UNDERSTANDINGRELATING TO PROJECT CHANGES This Memorandum of Understanding relating to Project Changes (the “MOU”) is entered thintoasofthis12day of December, 2024, by and among the Common Council (the “Council”), the Board of Public Works and the Mayor, respectively, of the City of Carmel, Indiana (the “City”); Section 1. Contract Approvals and Bidding. The Board of Public Works (hereinafter “BPW”) shall conduct all bid proceedings for the expenditures of the proceeds of this bond issue in accordance with applicable law and subject to the provisions of Sections Two (2), Three (3), Four (4) and Five (5) hereinafter. The BPW shall also approve all agreements, contracts and change orders for the expenditure of the proceeds of this bond issue in accordance with applicable law and subject to the provisions of Sections Two (2), Three (3), Four (4)and Five (5)hereinafter. All agreements, contracts and change orders shall clearly state that they are not binding upon the BPW or the City of Carmel until passage of the seven (7) business day review period or approval by the Council as outlined hereinafter. Section 2. Council Approval for Bids and Change Orders, and Contracts Estimated project costs are the individual project estimated costs listed herein on Exhibit A hereinafter “EPC”). Soft costs such as right-of-way cost, legal and engineering fees and other soft costs (hereinafter “soft costs') that are paid from these bond proceeds shall be included when calculating EPC. Soft costs to be paid from other previously appropriated monies shall not be included when calculating EPC. After the BPW approves any bids, change orders or contracts that: (1) exceed the EPC, (2) reduce the EPC on any of the Parks Projects (defined below), or (3) are related to Level 2 Priority Projects, the Council shall have the right to approve or disapprove said bid, change order or contract in accordance with Sections Three (3), Four (4) and Five (5) herein below. The parties agree that, except for any LRS Non-Controlled Project (as defined in the Ordinance), each of the other individual Projects will be an independently desirable end in itself without reference to another project and the total cost to the City of any individual Project (including an allocable portion ofany capitalized interest and the costs of issuing the Bonds, but excluding any costs permitted to be excluded therefrom pursuant to Indiana Code 6-1.1-20-0.7), whether financed with proceeds of the Bonds or other legally available revenues of the City, shall not exceed $6,350,000. Section 3. Process for Approving Bids that Exceed the EPC By the close of business within three (3) business days after the day the BPW approves any Change Order that exceeds the EPC, the Clerk of the City ofCarmel shall deliver copies of said Change Order to each member of the Council, along with any explanation requested to be transmitted to the Council by the City Engineer, orhis designee, at the time of the BPW approval. Docusign Envelope ID: 239618E8-F7E6-4969-8BC1-06C7CCFB0F74 Thereafter, the Council shall have deemed to have agreed to the proposed Change Order at ththecloseofbusinessontheseventh (7) day after the date of the BPW approval (hereinafter Effective Date”), unless: (a) by the close ofbusiness on the Effective Date, any member of the Council who disputes inwriting such proposed Change Order requests in writing that the Clerk place such issue on the agenda for the next meeting ofthe Council; and (b) at such meeting, Council disapproves such Change Order by a vote of a majority of the elected members of the Council. Section 4. Parks Projects and Change Orders. The management of all Parks Projects, from design to completion, including the scope, timing, and acceptance of bids, shall be directed by the Carmel Clay Parks Department (“Parks Department”), and the Director of the Parks Department shall serve as the owner’s representative on all Parks Projects. Upon request from the Parks Department, BPW shall initiate the bid proceedings for the Parks Projects. By the close of business, within three (3) business days after the day the BPW approves any bids, change orders or contracts, or makes any determination that reduces the EPC on any of the Parks Project (“Parks Change Orders”), the Clerk of the City of Carmel shall deliver copies ofsaid Change Order to each member of the Council and the Carmel Clay Board of Parks and Recreation (“Parks Board”), along with any explanation requested to be transmitted to the Council and the Parks Board by the City Engineer, or his designee, at the time of the BPW approval. Thereafter, the Council and the Parks Board shall have deemed tohave agreed tothe thproposedParksChangeOrderatthecloseofbusinessontheseventh (7) day after the date of the BPW approval (the “Effective Date”), unless: (a) by the close ofbusiness on the Effective Date, any member of the Council or Parks Board who disputes in writing such proposed Parks Change Order requests in writing that the Clerk place such issue on the agenda for the next meeting ofthe Council; and (b) at such meeting, the Council disapproves such Change Order by a vote of a majority of the elected members of the Council. Section 5. Process for Approval of Level 2 Priority Projects. By the close of business within three (3) business days after the day the BPW approves any bids, change orders orcontractson Level 2 Priority Projects (“Level 2Agreements”), the Clerk of the City of Carmel shall deliver copies ofsaid Level 2 Agreements toeach member of the Council, along with any explanation requested to be transmitted to the Council by the City Engineer, or his designee, atthe time of the BPW approval. Thereafter, the Council shall have deemed to have agreed to the proposed Level 2 thAgreementsatthecloseofbusinessontheseventh (7) day after the date ofthe BPW approval the “Effective Date”), unless: (a) by the close of business on the Effective Date, any member of the Council who disputes in writing such proposed Level 2 Agreement requests in writing that the Clerk place such issue on the agenda for the next meeting of the Council; and (b) at such meeting, Council disapproves such Level 2 Agreement by a vote of a majority of the elected members of the Council. Section 6. Definitions. For purposes of this Agreement, each of the· following terms shall have the meaning assigned to it by this Section 6: 2 Docusign Envelope ID: 239618E8-F7E6-4969-8BC1-06C7CCFB0F74 a)“Parks Projects” means those Level 1 Priority Projects numbered 5, 6, and 7 on Exhibit A to the Ordinance. b)“ Expenditure” means any payment or other disposition of any Proceeds, excluding: i)any payment of principal of orpremium, if any, or interest on the Bonds, including use of Proceeds to pay capitalized interest, (ii) any payment of any costs of issuance of the Bonds, (iii) any investment of any Proceeds in any interest-bearing instruments, or (iv) any payment(s) or other disposition(s), in the aggregate if the contracted matter for which payment(s) or disposition(s) is/are being made is completed inone or more steps or is part of a set or series of related contracted matters with a single person or vendor, on each project listed on Exhibit A ofany Proceeds in an amount less than $250,000. c)“Ordinance” means Ordinance D-2729-24, As Amended. d)“Proceeds” means any amounts received on behalf of the Authority and the City from the original issuance and sale of the Bonds, and any interest earnings thereon. Section 7. Amendments. This Agreement may beamended or terminated only bythe written agreement of all the parties hereto. Section 8. Governing Law. This Agreement and the rights and obligations hereunder shall begoverned by and construed and enforced in accordance with the internal laws of the State of Indiana, without reference to any choice of law principles. Section9.Severability. If any portion of this Agreement is held or deemed to be, or is, invalid, illegal, inoperable or unenforceable, the validity, legality, operability and enforceability of the remaining portions of this Agreement shall not be affected, and this Agreement shall be construed as of it did not contain such invalid, illegal, inoperable or unenforceable portion. Section 10. Interpretation. The use herein of the singular shall be construed to include the plural, and vice versa. Unless otherwise indicated, the words 'hereof herein,” “hereby and hereunder,” and words of similar import, refer to this Agreement as a whole and not to any particular section, subsection, clause or other portion of this Agreement. Section 11. Captions. The captions appearing inthis Agreement are included herein for convenience of reference only, and shall not be deemed to define, limit or extend the scope or intent of any rights or obligations under this Agreement. Signature Pages Follow\] 3 Docusign Envelope ID: 239618E8-F7E6-4969-8BC1-06C7CCFB0F74 ALL OF WHICH IS AGREED TO BY the Common Council, the Board of Public Works and the Mayor, respectively, of the City of Carmel, Indiana, as of the date and year first written above. COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA A, President CARMEL BOARD OF PUBLIC WORKS Laura Campbell, President CITY OF CARMEL, INDIANA Sue Finkam, Mayor TTEST: A Jacob Quinn, City Clerk 4 Docusign Envelope ID: 239618E8-F7E6-4969-8BC1-06C7CCFB0F74 Approved and Adopted this day of , 20 . CITYOFCARMEL,INDIANA Byand through itsBoard of Public Works andSafety BY: Laura Campbell, Presiding Officer Date: James Barlow, Member Date: Alan Potasnik, Member Date: ATTEST: Jacob Quinn, Clerk Date: Docusign Envelope ID: 239618E8-F7E6-4969-8BC1-06C7CCFB0F74 1/23/2025 1/23/2025 1/23/2025 2522January EXHIBIT A ESTIMATED PROJECT COSTS attached\] DMS 45575616.1 Docusign Envelope ID: 239618E8-F7E6-4969-8BC1-06C7CCFB0F74 EXHIBIT A CITY OF CARMEL, INDIANA 2024 Bond Project List Summary October 23, 2024 TOTAL COMBINED IMPROVEMENTS141,400,000$ 1) Assumes estimated construction costs onthe day of closing. Does not assume any state, federal or other funding is received. Note: Per Council Ordinance D-2729-24, no proceeds of the Bonds shall be spent on public art, and further provided that any proceeds ofthe Bonds remaining after the completion of the Projects and in the priority described above may only be used for additional projects specifically approved by amajority of the members of the Common Council or to pay debt service on the Bonds. Docusign Envelope ID: 239618E8-F7E6-4969-8BC1-06C7CCFB0F74