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Home My WebLink AboutN.B. 3 NITRATE REMOV 03-16-92NEW BUSINESS N0. 3 3-16-92 Liz - to or -Coni; TATE: MARCH 11, 1992 TO: WILLIAM HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/WATER DIVISION SUBJECT: ADDITIONAL SUPPLEMENTAL AGREEMENT FOR NITRATE REMOVAL DEMONSTRATION PROJECT RECOMMENDATION: That the City Council, at its regular meeting of March 16, 1992, approve the Additional Supplemental Agreement for the Nitrate Removal Demonstration Project, and authorize the Mayor to execute said agreement. BACKGROUND: Orange County Water District (OCWD) and the City entered into an agreement in January 1985 _ for construction and operation of a Nitrate Removal Demonstration Project., The original agreement has been augmented by three supplemental agreements dated May 1985, June 1987, and August 1989. DISCUSSION: The City's agreement with OCWD calls for a two year project demonstration period. At the end of that period, the feasibility of the plant's reverse osmosis (R.O.) and ion -exchange (I.X.) processes are to be determined. The plant was originally placed on line in November 1989 and was operated intermittently until February of 1990, at which time continuous operations began. During the first several months of continuous operation, the plant was not operated at full capacity because operational difficulties were being resolved. OCWD and City staff determined that the first several months of operation are not a fair and accurate representation of the costs of operating the plant, and therefore recommend that the start of the project demonstration be July 1, 1990, per the proposed agreement. This agreement also serves as the final project cost statement required by the original agreement, and states the cost of $1,548,895.80, with $898,359.56 attributed to the R.O. facility, and $650,536.24 attributed to the I.X. facility. This agreement also ratifies a letter agreement with OCWD dated August 17, 1989. This letter provides a method for. financial mitigation to the City due to the late start-up of the plant. The City will be credited $185,458 toward its initial $800,000 payment for the plant. ADDITIONAL SUPP. DENTAL AGREEMENT FOR TRATE REMOVAL DEMONSTRATION PROJECT March 11, 1992 Page 2 If the audit of the demonstration period costs proceeds expeditiously, an initial payment to OCWD of $614,542 will be due on approximately September 30, 1992. Additional information concerning operation of the plant is attached for your information and review. /rte Bob Ledendecker Director of Public W rks/City Engineer BL: GRV: cc Attachments '.k, A da' Gary R. Nkeeh Water Service Manager CITY OF TU STI N NITRATE REMOVAL DEMONSTRATION PLANT OPERATION SUMMARY FISCAL YEAR 1990/1991 ON WELL #3 (TO TREATMENT) 102.6 1224.5 67.0-61.0 64.0 WELL #2 (TO BLENDING) 115.9 1361.2 57.0-54.0 55.6 REVERSE OSMOSIS PRODUCT 47.2 550.6 5.4-4.8 5.0 ION -EXCHANGE PRODUCT 47.9 535.6 5.3-4.3 4.8 REVERSE OSMOSIS BLENDED PRODUCT 105.2 1256.6 36.0-31.0 33.9 ION -EXCHANGE BLENDED PRODUCT 102.3 1197.6 37.0-31.0 34.2 TOTAL PLANT PRODUCT207.5 2454.2 35.0-30.0 32.4 REVERSE OSMOSIS BRINE 8.6 97.6 ION_EXCHANGE BRINE 1.8 24.8 CITY OF TU STI N NITRATE REMOVAL DEMONSTRATION PLANT OPERATION SUMMARY FEBRUARY 1992 WELL #3 (TO TREATMENT) 104.3 705.3 58.0-55.0 56.5 WELL #2 (TO BLENDING) 117.7 766.4 54.0-51.0 51.7 REVERSE OSMOSIS PRODUCT 40.8 307.0 6.3-5.2 5.6 ION -EXCHANGE PRODUCT 43.8 306.5 4.9-4.6 4.7 REVERSE OSMOSIS BLENDED PRODUCT 106.3 720.5 39.0-32.0 35.2 ION -EXCHANGE BLENDED PRODUCT 103.2 676.5 37.0-31.0 33.5 TOTAL PLANT PRODUCT 209.5 .:::....:.:..:::..:1397.0.. 36.0:-3:1:;-0::.::33.6 REVERSE OSMOSIS BRINE 7.6 55.0 ION -EXCHANGE BRINE 1.1 11.4 00 tom`- On d' cn U"ua ADDITIONAL SUPPLEMENTAL AGREEMENT RE: TUSTIN NITRATE DEMONSTRATION PROJECT THIS ADDITIONAL SUPPLEMENTAL AGREEMENT is entered into as of February5 1992 by and between the ORANGE COUNTY WATER DISTRICT, a governmental district organized and existing pursuant to the Orange County Water District Act, Chapter 9241 Stats. 1933, as amended, (hereinafter referred to as "OCWD"), and the CITY OF TUSTIN, a municipal corporation organized and existing pursuant to the laws of the State of California (hereinafter referred to as "Tustin"). RECITALS A. OCWD and Tustin entered into the "NITRATE DEMONSTRATION PROJECT AGREEMENT" as of January 16, 1985, in order to construct - and operate an Ion Exchange Facility and a Reverse Osmosis Facility for the removal of nitrates from the groundwater produced from Tustin Wells Nos. 2 and 3 (hereinafter collectively referred to as the "Project Facilities"); B. OCWD and Tustin supplemented said "NITRATE DEMONSTRATION PROJECT AGREEMENT" by the "SUPPLEMENTAL AGREEMENT RE: TUSTIN NITRATE DEMONSTRATION PROJECT" dated June 1, 1987 which incorporated new provisions and also incorporated a letter agreement dated May 61 1985 clarifying certain provisions of the original agreement. C. OCWD and Tustin further supplemented said agreement by a letter agreement dated August 17, 1989, which is attached hereto as Exhibit "A." 1 D. The parties now desire to further supplement the original agreement by establishing July 1, 1990 as the date of beginning of the "Project Demonstration Period" pursuant to Section 3.2 of the "NITRATE DEMONSTRATION PROJECT AGREEMENT"; by setting forth the total cost paid by OCWD for design and construction of the project in the "Total Project Cost Statement" required by Section 2.6 of the "NITRATE DEMONSTRATION PROJECT AGREEMENT"; and by ratifying and confirming the provisions of the letter agreement dated August 17, 1989. NOW, THEREFORE, in consideration of the facts recited above and the covenants, conditions and promises contained herein, the parties hereto agree as follows: Section One: OCWD and Tustin hereby ratify and confirm the provisions of the letter agreement dated August 17, 1989, which is attached hereto as Exhibit "A." Section Two: OCWD and Tustin hereby establish July 1, 1990, as the date of the beginning of the "Project Demonstration Period" referred to in Section 3.2 of the "NITRATE DEMONSTRATION PROJECT AGREEMENT". Pursuant to Section 3.2, the "Project Demonstration Period" will continue for two years through June 30, 1992. Section Three: Pursuant to Section 2.6 of the "NITRATE DEMONSTRATION PROJECT AGREEMENT", the parties agree that the total cost paid by OCWD for design and construction of the Project Faciiities is as stated in the "Total Project Cost Statement" which is attached hereto as Exhibit "B" and incorporated herein by reference. 2 Section Four: Except as modified herein, all provisions of the "NITRATE DEMONSTRATION PROJECT AGREEMENT" dated January 16, 1985, as supplemented by the "SUPPLEMENTAL AGREEMENT RE: TUSTIN NITRATE DEMONSTRATION PROJECT" dated June 1, 1987, and the letter. agreement dated August 17, 1989, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Additional Supplemental Agreement as of the date first above written. . APPROVED AS TO FORM: ORANGE COUNTY WATER DISTRICT CLARK F. IDE 6 By ByIL �2. Vice Presid nt, General Counsel,- Bohrd of erectors Orange County Water District __ BY Generaf Manager APPROVED AS TO FORM: CITY OF TUSTIN ROURKE & WOODRUFF By City Attorneys, City of Tustin c:\document\agmts\sccsupp.tus By Mayor RV i City Clerk 3 N Directors PHILIP L. ANTHONY KATHRYN L. BARR JOHN V. FONLEY JOHN GARTHE OONN HALL LAWRENCE P. KRAEMER JR. AUGUST F. LENAIN GEORGE OSBORNE LANGDON W. OWEN NOBLE J. WAITE August 17, 1989 EXHIBIT "A" ORANGE COUNTY WATER DISTRICT Mr. Robert Ledendecker City Engineer City of Tustin 300 Centennial Way Tustin, CA 92680 Dear Mr. Ledendecker: Third Supplemental Agreement to OCWD/City of Tustin Nitrate Demonstration Project Agreement Officers LAWRENCE P. KRAEMER JR. President KATHRYN L. BARR First Vice President LANGDON W. OWEN Second Vice President WILLIAM R. MILLS JR. Genera/ A/anager MARY E. JOHNSON Distnct $ecretary The purpose of this letter is to establish agreement on the means for mitigation of financial impacts on the City of Tustin for late completion of the Tustin Nitrate Removal Demonstration Project. The originally scheduled project completion date was April 18, 1988, however, due to problems encountered during construction, the estimated project completion date has been extended to September 30, 1989. The City of Tustin has historically experienced high nitrate concentrations in its groundwater, which, consequently, has impacted the City's groundwater production capability. The Orange County Water District Board of Directors historically assigned Tustin a Basin Production Percentage of 60%. However, for the. year July 1, 1988 to June 30, 1989, the OCWD Board assigned Tustin a Basin Production Percentage of 70%, based on the originally anticipated completion date and the increased groundwater production capacity that the project would provide. During the year July 1, 1988 to June 30, 1989, the City's total water use was 13,246.6 acre-feet. For that period, the Basin Equity Assessment was $140/acre-foot. Had the OCWD Board assigned the City of Tustin a 60% basin production percentage for that period, the City would have received a Basin Equity Assessment payment from the District in the amount of $185,458. Thus, due to the assi.anment of the 70% Basin Production Percentage in the 1988-1989 water year, the City has foregone the $185,458 payment from the District, without the benefit of additional potable groundwater being available to the City. in recognition of this occurrence, the Dish ict hereby agrees to credit the City $185,458 toward the City's obligation for capital reimbursement to the District for the Tustin Nitrate Removal Project per the agreement dated January 16, MAILING ADDRESS: P.O. BOX 8300 FOUNTAIN VALLEY, CA 927284300 10500 ELLIS AVENUE. FOUNTAIN VALLEY TELEPHONE (714) 963-5661 FAX (714) 963-7472 Mr. Robert Ledendecker August 17, 1989 Page 2 1985, as augmented by the Supplemental Agreement dated May 6, 1985, and the Supplemental Agreement dated June 1, 1987. This credit will be in the form of a reduction of $92,729 each in the initial lump sum payment requirements of Tustin under sections 5.1.1 and 5.2.1 of the Supplemental Agreement dated June 1, 1987. Alternatively, in the event that either the ion exchange or the reverse osmosis facility is determined infeasible, the credit will be in the form of a reduction of $1859458 in the initial lump sum payment requirement for the remaining feasible facility. The Orange County Water District believes that this is fair, adequate and sufficient mitigation of financial impacts on the City of Tustin for late completion of the Tustin Nitrate Removal Demonstration Project. If the City of Tustin agrees that this letter accomplishes its purpose, please sign the enclosed duplicate and return it to OCWD. Very truly yours, William R. Mills J ., P.E. General Manager /meh ACCEPTANCE The City of Tustin hereby accepts the above means for mitigation of financial impacts on Ote City of Tustin for water year 1988-1989 for late completion of the Tustin Nitrate Removal Demonstration Project. By: G C ts. �- Dated: 11-4 - 8 9 EXHIBIT B OCWD/CITY OF TUSTIN NITRATE REMOVAL DEMONSTRATION PROJECT TOTAL PROJECT COST STATEMENT Engineering/Design $ 80,900.00 Construction $1,467,995.80 TOTAL $1,548,895.80 Costs attributed to Reverse Osmosis Facility $898,359.56 Costs attributed to Ion Exchange Facility $650,536.24 I hereby certify, under penalty of perjury, that this cost statement is true, correct, to the best of my knowledge. Jo . Chaufty Assistant General Mana r r '/1� Ad-, A dr w V. C orn Finan -- Director f�', dw�tu-�- ,!�rtfi6s Reilly Project Engineer Page 1 TUSTIN NITRATE REMOVAL PROJECT EXPENDITURE REPORT OCTOBER 31, 1991 Consultant/Contractor Description Expended sszssssss::ss.ssss asszzszzzzzsa=s:sssss I W A Engineers aszssszsss:zsxszsssaza:sass:ssszss:sss Test Tustin Wells $7,900.00 Metcalf i Eddy Design plan i specs for 0.5 MGD $73,000.00 ion exchange and RO plant :sssszsssssszss:ss sssssssssssssssssssss:s ss:sssszssss:ssszssss:ssssssssassssss:ss TOTAL ENGINEERING/DESIGN $80,900.00 szzs:sss:szsz:sass :sssssssssssssssssssss: Ace Stainless ssasssssssssss::azsssssssssssszsssasssss U-bolt/pipe/ trueline ball valve $96.44 Advantec-Div Greene Pumps i accessories $812.97 Advantec-Div Greene Equip. manitenance i repair $1,624.82 Allosep Filter housing $17,617.16 Allstar Paving Road and highway material $820.00 Argo Scientific Cleaning chemical $2,673.89 $137.83 B S i B Parts Baxter Scientific Electrode/potass chl/nitrate extract $990.05 Baxter Scientific Prod. Lab supply $180.27 Boyd Industrial Coating Patch coating in acid i $2,325.00 city of Tustin Start-up costs for project 147,981.00 Columbia Specialty Weld fittings $33.55 County of Orange EMA Emergency spill response $190.00 Crosby i Overton Clean up acid spill =4,284.02 Davis Quality Engr. Verify test 1240.00 Diversified Salt Rock salt $1,478.70 Fike Metal Products Rupture disk $393.80 GACO Systems, Inc. Construction of Demonstration Project $1,295,027.16 Hach Company Nitrate ionic stry $112.66 Barrington Indus.Plast. Ladder $1,992.50 Analysis $482.84 Batch $1,599.49 Batch Co. Meter $29.75 House of Batteries Battery I W A Engineers Construction project management $29,500.00 I W A Engineers ::.yineering services bidding phase $6,389.00 Indust. Metal Supply Co Metals, rods $622.63 Irvine Pipe i Supply Gaskets $213.39 Irvine Pipe i Supply Flange/coup $959.98 Raman Bearing Crane seal repair $440.39 Mc Coy Sheet Metal Cover for motor $209.42 Milton Roy Co. Pumps and accessories $1,569.21 Page 2 Consultant/Contractor zssaszszssszazsssasss Orange County Hose Co. O.C. Ind. Plastics Pendarvis Sales Peninsula Pump i Equip. Precision Chemical Preferred Pump Pro Shops Republic supply Ryan Herco Sensorex Separation Processes Shook Bldg. Systems Sparling Instruments Summit Steel The Water Man Truesdale Labs Vallen Safety Van Waters i Rogers Van Waters i Rogers Viking Freight VWR Scientific Western Salt TUSTIN NITRATE REMOVAL PROJECT EXPENDITURE REPORT OCTOBER 31, 1991 Description zazasszazcazzssssasazzsszaszz:saz3aszx Expended zzssszszasa:ssasss Suction hose $508.94 Clear acrylic $267.96 Asco i solenoid valves $298.07 Equip. manitenance i repair $438.62 Precision injection valve assy. $56.36 Pump slack slurry $138.50 Equip. manitenance i repair $1,794.71 Pressure gauge $86.64 Tubing $159.49 Reference electrode $294.15 Technical review (part) $26,518.00 Plans $690.00 Test $60.00 Steel angle $1,323.07 Rock salt $4,929.00 Samples testing $300.00 Modesty curtain $252.60 Sulfuric acid $1,681.45 Acid spill settlement payment ($888.37) Freight $132.18 Lab supply $26.19 Salt $7,900.32 s:sssssszssssazszssisssssassisssz:lssssi TOTAL CONSTRUCTION a i a i !i as i i ii iii s!! i a i ai iii ! i as a ti iiia Z ai szasss:sssssssssss $1,467,995.80 s i i is a l a s ai ai i ii i i t i a i i as a i i i iii ii a s at ii as iiia i iii i i i! i a !i TOTAL PROJECT $1,548,895.80 ass:zaszssas:sass:s:sszssssassasszzssass szasss::sass::asss Costs Attributed to Reverse Osmosis Facility $898,359.56 Costs Attributed to Ion Exchange Facility $650,536.24