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HomeMy WebLinkAbout11 APPROVE REIMBURSEMENT AGREEMENT WITH OCSD~ A ends Item 11 -~~~ ~ AGENDA REPORT Reviewed: City Manager Finance Director MEETING DATE: JUNE 7, 2011 TO: WILLIAM A. HUSTON, INTERIM CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS /CITY ENGINEER SUBJECT: APPROVE REIMBURSEMENT AGREEMENT WITH THE ORANGE COUNTY SANITATION DISTRICT FOR SEWER MANHOLE REHABILITATION AND SEWER PIPE REPAIRS SUMMARY A portion of the work to be performed under this year's Annual Roadway and Public Infrastructure Maintenance Program CIP No. 70001 is road rehabilitation on Red Hill Avenue from north of Barranca Parkway to Valencia Avenue. The proposed Reimbursement Agreement between the City of Tustin and the Orange County Sanitation District (OCSD) provides for the OCSD to reimburse the City for sewer manhole rehabilitation on the District's Gisler-Red Hill Trunk Sewer within Red Hill Avenue. The agreement also provides for the City to reimburse the OCSD for repairs to the sewer system previously constructed by the City under the Newport Avenue/SR 55 Northbound Ramp Reconfiguration Project CIP No. 70130. RECOMMENDATION It is recommended that the City Council approve the Reimbursement Agreement with the Orange County Sanitation District for sewer manhole rehabilitation on Red Hill Avenue and sewer repairs for the Newport Avenue/SR 55 Northbound Ramp Reconfiguration Project CIP No. 70130, and authorize the Mayor and City Clerk to execute the document on behalf of the City. FISCAL IMPACT The Reimbursement Agreement stipulates that the OCSD will reimburse the City for a not to exceed cost of $225,000 for sewer manhole rehabilitation on its Gisler-Red Hill Trunk Sewer on Red Hill Avenue. The agreement also provides for the City to reimburse the OCSD in a not to exceed cost of $100,000 for repairs to the sewer system constructed under the City's Newport Avenue/Northbound SR 55 Ramp Reconfiguration Project CIP No. 70130. Payment to the OCSD for the Newport/SR 55 sewer system repairs is budgeted in the CIP 70130 project budget. DISCUSSION Rehabilitation of Red Hill Avenue between Barranca Parkway and Valencia Avenue is included in the Annual Roadway and Public Infrastructure Maintenance Program CIP No. 70001. The project is currently progressing and includes complete repaving of the road within the stated limits. The OCSD is planning to reline its Gisler-Red Hill Trunk Sewer within the next year. This work requires larger manholes to provide equipment access. In order to avoid excavation for the manholes in the newly paved road and to minimize impacts on the public, OCSD has asked the City to perform the manhole work as part of the City's Red Hill Avenue project. Under the reimbursement agreement the OCSD will compensate the City for this work. Reimbursement Agreement with the OCSD June 7, 2011 Page 2 Construction of the Newport Avenue/SR 55 Northbound Ramp Reconfiguration Project CIP No. 70130 included installation of a sewer system. A video inspection of the sewer system has revealed settlement in one manhole and localized cracking in some of the pipelines. These problems are related to unusual soil conditions, exacerbated by the fluctuations of localized groundwater. Since OCSD is very familiar with the specialized type of work needed to repair the sewer system, OCSD has agreed to administer the repair work on a reimbursement basis. The City Attorney has reviewed and approved this agreement as to form. The OCSD Board of Directors approved the reimbursement agreement at their meeting of May 25, 2011. !S. Stack, P.E. of Public Works/City Engineer Attachment: Reimbursement Agreement S:1City Council Items~2011 Council ItemsWpproval of Agreement with OCSD for Sewer Work.docx REIMBURSEMENT AGREEMENT BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND CITY OF TUSTIN FOR THE GISLER RED HILL SYSTEM IMPROVEMENTS AND NEWPORT/SR 55 RAMP RECONFIGURATION PROJECT IN THE CITY OF TUSTIN OCSD CONTRACT No. 7-37 CITY OF TUSTIN CIP PROJECT N0.70130 THIS REIMBURSEMENT AGREEMENT ("Agreement") is made and entered into on this day of 2011, by and between the: ORANGE COUNTY SANITATION DISTRICT, a County Sanitation District, hereinafter referred to as ("OCSD"); AND CITY OF TUSTIN, a municipal corporation, hereinafter referred to as ("City"). OCSD and City are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as "Parties." WHEREAS, OCSD is a duly organized County Sanitation District existing pursuant to the County Sanitation District Act, California Health and Safety Code section 4700 et seq., providing for the ownership, operation, and maintenance of wastewater collection, treatment, and disposal facilities within Orange County, California; and WHEREAS, the City is a municipal corporation duly organized and validly existing under the laws of the State of California; and WHEREAS, OCSD is constructing the Gisler-Redhill System Improvements Reach B, City of Tustin Manhole Rehabilitation project ("OCSD Project") located in Red Hill Avenue, in the City of Tustin; and WHEREAS, the City is constructing its Annual Roadway and Public Infrastructure Maintenance Project ("City Project"), a portion of which is located along Red Hill Avenue in the City of Tustin ("City's Project Area"); WHEREAS, OCSD's Project (see attached Exhibit A) is within the City's Project Area; WHEREAS, the City has already engaged the services of a contractor for the construction of the City's Project. 767454.1 WHEREAS, OCSD and City desire to perform OCSD's Project and City's Project in a manner that minimizes the impacts to the environment, the public and surrounding community; and WHEREAS, the City desires to have OCSD repair City-constructed sewer lines under Tustin's Newport Avenue/SR 55 Northbound Ramp Reconfiguration Project, located in Newport Avenue and Valencia Avenue in the vicinity of the northbound SR-55 ramp ("Sewer Repair"); and WHEREAS, the Parties desire to enter into this Reimbursement Agreement to memorialize the duties and obligations of each respective Party for the completion of the OCSD Project, the City Project and the Sewer Repair. NOW THEREFORE, based on the Recitals and the mutual covenants and promises herein, the City and OCSD agree as follows: Section 1: Recitals. The Recitals above are deemed true and correct, are hereby incorporated in this Section as though fully set forth herein, and each Party to this Agreement acknowledges and agrees that they are bound by the same. Section 2: Elements of Agreement. OCSD and City shall work cooperatively together so the OCSD Project, the City Project, and the Sewer Repair can be constructed in a manner that minimizes the costs and impacts to the public. The specific terms and conditions governing the elements of this Agreement are set forth hereinafter. Section 3: Citv's Specific Obligation Relating to OCSD Project A. Upon OCSD's authorization, the City will have its contractor proceed with OCSD's Project. B. City shall be responsible for administering the construction contract and the construction of the OCSD Project and the City Project. C. City shall be responsible for compliance with the California Environmental Quality Act ("CEQA") (Pub. Resources Code, Section 21000 et seq.) for all, activities associated with City Project and City shall be the Lead Agency for purposes of CEQA. D. City shall require aone-year warranty on the OCSD Project from its construction contractor, and the portion of which covers the OCSD Project shall be assigned to OCSD upon City's transfer of OCSD's Project. Such warranty shall comply with the City's General Provisions Section 2-4 "Contract Bonds." E. City shall promptly inform OCSD during the course of construction of any proposed change orders to the construction contract that affect the OCSD Project. Copies of proposed change orders affecting OCSD will be provided to OCSD within five (5) working days of submission to City. All change orders shall be subject to OCSD's approval if, and to the 767454.1 extent, OCSD's Improvements are affected thereby. OCSD agrees not to unreasonably withhold its approval to such change orders. F. City shall furnish and deliver to OCSD all as-built redlined Contractor's plans of OCSD Project and any additional project-related documents requested by OCSD at no cost to OCSD. Section 4: OCSD's Specific Obligations Relating to OCSD Project. A. OCSD shall (i) be responsible for the design and preparation of the plans and specifications for the OCSD Project; (ii) obtain City's approval of its plans and specifications; and (iii) obtain all required permits for the construction of the OCSD Project and easements related thereto. B. OCSD shall be responsible for compliance with the California Environmental Quality Act ("CEQA") (Pub. Resources Code, Section 21000 et seq.) for all activities associated with the OCSD Improvements and OCSD shall be the Lead Agency for purposes of CEQA and, in such capacity. OCSD Improvements were included in its 1999 Strategic Plan Program EIR, Certified on October 27, 1999. A Notice of Determination was filed on October 29, 1999. If requested, OCSD shall supply to City a copy of the OCSD-approved environmental review document. C. Upon completion and acceptance of OCSD's Project by OCSD, OCSD will reimburse the City for all costs and expenses for the construction of OCSD's Project in an amount not-to-exceed two hundred twenty-five thousand dollars ($225,000), which includes, a four percent (4%) administration fee to cover City staff time. OCSD's reimbursement of costs shall not include costs and services for the design and construction of City's Project. D. OCSD shall pay the City within 30 days after receiving a detailed invoice from the City. E. OCSD shall have the sole and absolute discretion to approve all aspects of the design and construction of OCSD's Project, as well as construction change orders related thereto. OCSD shall assign a Resident Engineer to oversee change orders, if any. F. OCSD shall provide construction inspection and support services for OCSD's Project. OCSD shall inspect construction of the OCSD's Project as it deems necessary to assure compliance with the approved Plans and Specifications, including shop drawing review, requests for information and clarifications, material inspection, surveying, geotechnical testing and recommendations, specialty inspections, permit compliance, construction meetings, and design changes thereof. OCSD shall promptly notify City if any portion of the work appears not to conform to the Plans and Specifications, and shall work with the City on all items associated with the OCSD Project's construction. G. OCSD shall prepare its own Record Drawings. 767454.1 Section 5: OCSD's Specific Obligation Relating to the Sewer Repair. A. At the request of the City, OCSD will obtain quotes from three contractors to complete the Sewer Repair. OCSD will review the lowest quote OCSD receives for the Sewer Repair with City staff and provide City staff an opportunity to authorize OCSD to proceed with the Sewer Repair utilizing the low bidder. Upon the City's authorization, OCSD will have its contractor proceed with Sewer Repair. B. OCSD shall be responsible for administering the contract for the Sewer Repair. C. OCSD shall require aone-year warranty on the Sewer Repair from its contractor, which warranty shall be assigned to City upon OCSD's transfer of Sewer Repair. Such warranty shall comply with the City's General Provisions Section 2-4 "Contract Bonds." D. OCSD shall promptly inform the City during the course of the Sewer Repair of any proposed change orders to the repair contract. Copies of proposed change orders affecting the City will be provided to the City within five (5) working days of submission to OCSD. All change orders shall be subject to the City's approval. The City agrees not to unreasonably withhold its approval to such change orders. E. OCSD shall provide construction inspection and support services for the Sewer Repair. OCSD shall inspect construction of the Sewer Repair as it deems necessary to assure compliance with the approved Plans and Specifications, including shop drawing review, requests for information and clarifications, material inspection, surveying, geotechnical testing and recommendations, specialty inspections, permit compliance, construction meetings, and design changes thereof. OCSD shall promptly notify City if any portion of the work appears not to conform to the Plans and Specifications, and shall work with the City on all items associated with the Sewer Repair. F. OCSD shall furnish and deliver to the City all as-built redlined Contractor's plans for the Sewer Repair and any additional project-related documents requested by the City at no additional cost to the City. Section 6: 'The Citv's Specific Obligations Relating to the Sewer Repair. A. The City shall (i) be responsible for the design and preparation of the plans and specifications for the Sewer Repair; and (ii) obtain all required permits for the Sewer Repair and easements related thereto. B. Upon completion and acceptance of Sewer Repair by the City, the City will reimburse OCSD for all costs and expenses for the Sewer Repair in an amount not-to-exceed one hundred thousand dollars ($100,000), which includes, a four percent (4%) administration fee to cover OCSD staff time. C. The City shall pay OCSD within 30 days after receiving a detailed invoice from the OCSD. 767454.1 D. The City shall oversee the Sewer Repair work as it deems necessary. The City shall promptly notify OCSD if any portion of the Sewer Repair work appears not to be in conformance with the applicable plans and specifications. E. The City shall to prepare its own record drawings. Section 7: Indemnification. A. City shall indemnify, defend and hold OCSD, its officers, agents, employees, and consultants harmless from any and all actions, suits, claims, liability or expense for death, injury, loss, or damage to persons or property which may arise or is claimed to have arisen during or out of construction or undertaking of the OCSD Project, the Sewer Repair, and/or City Project, as a result of any work or action performed by or on behalf of City, its officers, agents, employees or consultants, save and except in those instances where such expense, liability or claim is solely caused by any act, omission, or negligence of OCSD, its officers, agents, employees or consultants. B. OCSD shall indemnify, defend and hold City, its elected and appointed officials, officers, agents, employees, and consultants, harmless from any and all actions, suits, claims, liability or expense for death, injury, loss or damage to persons or property which may arise or is claimed to have arisen as a result of any act performed by OCSD, its officers, agents, employees or consultants, with respect to the construction or undertaking of the OCSD Project or the Sewer Repair, as a result of or in connection with the maintenance and operation of the OCSD Project or the Sewer Repair, save and except in those instances where such expense, liability or claim is solely caused by any act, omission or negligence of City, its officers, agents, employees or consultants. Section 8: Insurance. The Parties shall require their respective contractors to maintain insurance policies in compliance with the City's General Provisions Section 7-3 "Liability Insurance" during all times of the construction projects. Both parties shall be named on each insurance policy. Neither party shall allow its contractor or subcontractor(s) to commence the work covered by this Reimbursement Agreement until such insurance is obtained in accordance with the requirements of this section. Section 9: Term. This Agreement shall commence on the above written date, and be in full force and effect until the .specified obligations of both Parties have been fulfilled or the Agreement is terminated as set forth herein. Section 10: Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested, delivered or sent by electronic transmission, and shall be deemed received upon the earlier of: (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) three (3) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by electronic transmission. Any notice, request, demand, direction, or other 767454.1 communication sent by electronic transmission must be confirmed within forty-eight (48) hours by letter mailed or delivered. Notices or other communications shall be addressed as follows: To OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Clerk of the Board Facsimile: (714) 962-5018 To CITY: City of Tustin 300 Centennial Way Tustin, CA 92780 Attention: Director of Public Works/City Engineer Facsimile: (714) 832-0825 Section 11: Jurisdiction. In the event of a dispute regarding performance or interpretation of this Agreement, the venue for any action to enforce or interpret this Agreement shall lie in the Superior Court of California for Orange County. Section 12: No Third Partv Beneficiaries. This Agreement is entered into by and for the OCSD and the City, and nothing herein is intended to establish rights or interests in individuals or entities not a party hereto. Section 13: Force Majeure. Except for the payment of money, neither Party shall be liable for any delays or other non-performance resulting from circumstances or causes beyond its reasonable control, including without limitation, fire or other casualty, Act of God, strike or labor dispute, war or other violence, acts of third parties, or any law, order, or requirement of any governmental agency or authority. Section 14: Governin Law. This Agreement shall be governed by the laws of the State of California. Section 15: Entire Agreement. This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations and agreements between the Parties pertaining to the subject matter hereof, and supersedes the Letter of Intent previously entered into by the Parties. Section 16: Waiver. A waiver of a breach of the covenants, conditions, or obligations under this Agreement by either Party shall not be construed as a waiver of any succeeding breach of the same or other covenants, conditions, or obligations of this Agreement. 767454.1 Section 17: Modification. Alteration, change, or modification of this Agreement shall be in the form of a written amendment, which shall be signed by both Parties. Section 18: Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. Section 19: A~'eement Execution and Authorization. Each of the undersigned represents and warrants that they are duly authorized to execute and deliver this Agreement and that such execution is binding upon the entity on whose behalf they are executing this Agreement. This Agreement maybe executed in counterparts. IN WITNESS WHEREOF, THE PARTIES HERETO HAVE EXECUTED THIS REIMBURSEMENT AGREEMENT the day and year described herein. ORANGE COUNTY SANITATION DISTRICT By Jim Ruth, General Manager APPROVED AS TO FORM: SPECIAL COUNSEL By M. Katherine Jenson, Rutan & Tucker, LLP 767454.1 CITY OF TUSTIN By Jerry Amante, Mayor ATTEST: By Pamela Stoker, City Clerk APPROVED AS TO FORM By Douglas S. Holland, City Attorney 767454.1