HomeMy WebLinkAbout10 APPROVE SECOND AMEND. TO FUNDING AGREE. FOR PETERS CANYON WASH CHANNEL & REUSE PIPELINE_- • Agenda Item 10
AGENDA REPORT Reviewed
City Manager
Finance Director N/A
MEETING DATE: APRIL 21, 2015
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS /CITY ENGINEER
SUBJECT: APPROVE AMENDMENT NO. 2 TO THE AGREEMENT WITH THE CITY OF
IRVINE, IRVINE RANCH WATER DISTRICT, COUNTY OF ORANGE, ORANGE
COUNTY FLOOD CONTROL DISTRICT, AND THE CALIFORNIA
DEPARTMENT OF TRANSPORTATION TO FUND THE PETERS CANYON
WASH CHANNEL WATER CAPTURE AND REUSE PIPELINE
SUMMARY
The cooperative agreement between the County of Orange, the Orange County Flood Control
District (OCFCD), the Irvine Ranch Water District (IRWD), California Department of Transportation
(Caltrans), and the Cities of Irvine and Tustin was approved on November 19, 2013. The
agreement provides for joint funding for the construction of the Peters Canyon Wash Channel
Water Capture and Reuse Pipeline (PCW Pipeline Project). The construction of the pipeline will
enable the City of Tustin to continue to comply with the provisions of the Selenium Total Maximum
Daily Load (TMDL) and the Time Schedule Order No. R8- 2009 -0069, as adopted by the United
States Environmental Protection Agency and the Santa Ana Regional Water Quality Control Board.
Amendment No. 1 was approved January 20, 2015 and provided a supplemental payment to
IRWD to complete Phase 1 of the project. Amendment No. 2 will update the estimated project cost
to increase the Capital Cost Contribution and Estimated Second Installment Payment for the
funding of Phase 2 of the project. The amendment will also clarify the parties' rights and
obligations to comply with Proposition 84 grant program requirements.
RECOMMENDATION
It is recommended that the City Council:
Appropriate $750,000 from the Tax Allocation Bond (Fund 561) for the Peters Canyon Wash
Channel Water Capture and Reuse Pipeline; and
2. Approve the second amendment to the Peters Canyon Wash Channel Water Capture and
Reuse Pipeline Funding Agreement, and authorize the Mayor and City Clerk to execute the
document on behalf of the City.
FISCAL IMPACT
The Agreement divided the estimated project costs into two phases. The cost for Phase 1 was
$1,522,000 to fund the development of environmental documents and the engineering design
costs. The City of Tustin's portion of the cost for Phase 1 was $276,522 which was funded through
MICAS Backbone Fees (Fund 187) and the MICAS Tax Allocation Bond (TAB) (Fund 561). A cost
estimate for Phase 2 has been revised for the construction of the project and is now $11,292,000.
Second Amendment Peters Canyon Wash Channel Pipeline Funding Agreement
April 21, 2015
Page 2
The City of Tustin's portion is now $652,771, with a requested appropriation of $750,000 to ensure
any unforeseen expenditures can be addressed.
The adopted budget for the Peters Canyon Wash Water Capture and Reuse Pipeline Project (CIP
50039) is $450,000 from Proceeds from Land Held for Resale (Fund 189). By way of this agenda
report, staff is requesting the funding source be changed to MICAS TAB. This project is listed in
the Tustin Legacy Backbone Infrastructure Program and can be funded with MCAS TAB proceeds.
MICAS TAB funds were being held by the California Department of Finance and only became
available for use by the City on January 1, 2015. With these funds now available, staff believes it
prudent to utilize MICAS TAB funds for which the sole purpose is to construct Tustin Legacy
Infrastructure rather than Land Proceeds, which can be used for more general purposes.
CORRELATION TO STRATEGIC PLAN
The construction of the Peters Canyon Wash Water Capture and Reuse Pipeline contributes to the
fulfillment of the City's Strategic Plan Goal G: Strong Community and Regional Relationships.
Specifically, this project implements Strategy #2, which encourages working collaboratively with
agencies outside Tustin on issues of mutual interest and concern to the parties.
BACKGROUND
In 1998, the Santa Ana Regional Water Quality Control Board identified the Newport Bay and San
Diego Creek as impaired water bodies for selenium. As a result, the Environmental Protection
Agency adopted a Total Maximum Daily Load (TMDL) for selenium in the Newport Bay Watershed
that required the development of programs to attain reduction targets. In 2009, the Santa Ana
Regional Water Quality Control Board issued Time Schedule Order for Compliance (TSO) R8-
2009 -0069. Failure to comply with the TMDL and TSO would expose the City to potential minimum
daily fines and third party lawsuits. The Peters Canyon Wash Pipeline will enable the City to
comply with the Santa Ana Regional Board's TMDL and TSO requirements.
The City approved the funding agreement with the City of Irvine, IRWD, OCFCD, and Caltrans on
November 19, 2013. Under the Agreement the estimated project cost was anticipated not to
exceed $8,678,611. However, the costs for design, preparation of environmental documents, and
mitigation along with the received lowest bid for construction, have increased the estimated project
cost to $12,814,000. Amendment No. 2 will amend the agreement to update the estimated project
cost and increase the amounts of each funding party's contribution. Amendment No. 2 will also
clarify the party's rights and obligations regarding grant funding as requested by the Proposition 84
Integrated Regional Water Management Round 2 Implementation Grant Program administered by
the Santa Ana Watershed Project Authority (SAWPA).
The City Attorney has reviewed and approved the amendment "as to form ". It is therefore
recommended that the City Council approve the First Amendment to the Peters Canyon Wash
Channel Water Capture and Reuse Pipeline Funding Agreement and authorize the Mayor and City
Clerk to execute the document on behalf of the City.
Stack, P.E.
Public Works /City Engineer
Attachment 1: Amendment No. 2 to Peters Canyon Wash Channel Water Capture and Reuse Pipeline Agreement
Attachment 2: Budget Summary
03/26/15
AMENDMENT NO. 2 to
Peters Canyon Wash Channel Water Capture and
Reuse Pipeline Project Agreement
(Including Operations and Maintenance)
City of Irvine
City of Tustin
Orange County Flood Control District
County of Orange
Irvine Ranch Water District
California Department of Transportation
This Amendment No. 2 ("Amendment') to Peters Canyon Wash Channel Water
Capture and Reuse Pipeline Project Agreement ('Original Agreement') is made as of this
day of , 2015, (`Effective Date ") by and among Irvine Ranch Water District, a
body corporate and politic ( "IRWD "), City of Irvine, a charter city (`Irvine "), City of Tustin, a
California municipal corporation ('Tustin "), Orange County Flood Control District, a body
corporate and politic ( "OCFCD "), County of Orange, a political subdivision of the State of
California (`County"), and California Department of Transportation, an agency of the State
of California ( "Caltrans "), hereinafter sometimes individually referred to as "Party" or
collectively as the "Parties." OCFCD and County are each individually Parties to this
Amendment, but are collectively referred to in this Amendment as OCFCD. Irvine, Tustin,
OCFCD, and Caltrans are providing funds to pay capital costs and are individually referred to as
a "Funding Party", and are collectively referred to as the "Funding Parties ". OCFCD, IRWD,
Irvine, and Tustin are individually referred to as an "Excess Credit Party", and are collectively
referred to as the "Excess Credit Parties ".
RECITALS
A. The Parties entered into the Original Agreement as of December 12, 2013, to: (i) set
forth their respective rights and obligations with respect to financing of the Peters Canyon Wash
Channel Water Capture and Reuse Pipeline Project (the "Project') and completion of the
Project design, at which point, subject to all necessary approvals having been obtained and
compliance with applicable state and federal laws, including CEQA, and, if federal funding is
provided for the Project, subject to compliance with the NEPA, the Parties will determine
whether or not to proceed with construction and operation of the Project as provided for in the
Agreement; and (ii) to memorialize the basis for the overall Project development and financing,
including but not limited to obtaining permits from resource agencies and other government
entities, design and construction of the Project, and operation and maintenance of the Pipeline, if
the Parties determine to proceed with the Project.
B. The Parties entered into that certain Amendment No. 1 to the Original Agreement
dated as of February 9, 2015 , to (i) update the Project Schedule (Exhibit D to the Agreement),
(ii) to facilitate expediting of the solicitation of bids for construction of the Project so that a
reliable cost estimate for construction of the Project could be obtained by bidding, and (iii) to
increase the funding for Phase 1 of the Project (design, environmental /regulatory review and
approvals and access acquisition) without changing the Estimated Project Cost through the
payment of a Supplemental Installment by each Funding Party. The Original Agreement and the
Amendment No. 1 are collectively referred to herein as the "Agreement." All capitalized
terms used in this Amendment and not otherwise defined herein shall have the meanings
ascribed to them in the Agreement.
C. Pursuant to the terms of the Agreement, the Funding Parties have each made the First
Installment Payment and the Supplemental Installment Payment for the funding of Phase 1 of
the Project.
D. At the time of entering into the Original Agreement, the Parties estimated that the
total "Capital Costs" for the Project (the "Estimated Project Cost') would not exceed
$8,678,611. As contemplated in Section 4.6 of the Agreement, IRWD advertised a contract for
construction of the Project and has received bids, which have been opened and reviewed by each
of the Parties. The lowest responsive and responsible bid, together with the cost of certification
and approval of all necessary environmental documents and receipt of all regulatory agency
approvals, will cause the current Estimated Project Cost (which includes the 20% contingency
amount) set forth in the Original Agreement to be exceeded. The Parties now estimate that the
Estimated Project Cost will not exceed $12,814,000. In accordance with Section 4.6.1 of the
Agreement, the Parties have met and conferred and determined that IRWD should award a
contract for construction of the Project to the lowest responsive and responsible bidder;
accordingly, the Parties have determined that it is necessary to amend the Agreement to update
the Estimated Project Cost, to increase the amounts of each Funding Party's respective Capital
Cost Contribution and Estimated Second Installment Payment for the funding of Phase 2
(construction) of the Project and to augment and clarify certain provisions with respect to
application of funds to O &M Costs and Capital Costs.
E. Through this Amendment, the Parties also wish to update the Project Schedule
(Exhibit "D ") to reflect the currently anticipated Project schedule, to further clarify the Parties'
rights and obligations with respect to suspension of operation of the Pipeline, and to augment
and clarify their rights and obligations set forth in the Agreement with respect to grant funding
for the Project, including the Proposition 84 Integrated Regional Water Management Round 2
Implementation Grant Program administered by the Santa Ana Watershed Project Authority
(SAWPA) One Water One Watershed (OWOW).
AMENDMENT
NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated
herein by reference, and the mutual covenants and promises among the Parties hereinafter set
forth, the Parties agree as follows:
Section 1. Project Costs.
1.1. Increase of Estimated Project Cost. Notwithstanding the first sentence of Recital
E of the Original Agreement, the Parties now estimate that the total cost of "Capital Costs" for
the Project (referred to in the Agreement as the "Estimated Project Cost ") will not exceed
$12,814,000 . Accordingly, Exhibit "B" to the Agreement shall be updated as provided in
Section 6, below, to reflect the revised Estimated Project Cost and the amounts of the Funding
Parties' respective revised Project Capital Cost Contributions and Estimated Second Installment
Payment.
1.2. In order to clarify the definition of "Capital Costs" as such term was defined in
Recital E of the Original Agreement, the second sentence of Recital E is hereby amended to read
as follows:
"The term "Capital Costs" means all design and construction costs, including without
limitation construction, costs for defense of CEQA/NEPA lawsuits or construction
claims, project administration, including, but not limited to, accounting, inspection,
surveying, compaction testing, geotechnical services and engineering, a reasonable and
appropriate share of IRWD staff time, consultant costs, costs of permitting, bonds, rights -
of -way acquisition, design, environmental compliance, mitigation identiTed in the
approved CEOA documents for the Project excluding the supplemental water supply to
the San Joaquin Marsh (subject to Sections 5.3 and 5.4), and documentation, costs
related to HM Management Activities related to HM -2 (as defined in Section 1.9),
management activities, construction management, startup and testing activities, project
management and legal support for design, permitting and construction of the Project."
1.3. In order to clarify the definition of "O &M Costs" as such term was defined in
Recital F of the Original Agreement, Recital F of the Original Agreement is hereby amended in
its entirety to read as follows:
"F. Subject to compliance with applicable state and federal laws, including the
California Environmental Quality Act (California Public Resources Code § 21000 et
seq.) ( "CEQA ") and, if federal funding is provided for the Project, subject to compliance
with the National Environmental Policy Act (42 U.S.0 § 4231 et seq.) ( "NEPA "), the
Parties will, as described in this Agreement, jointly provide: funding of Capital Costs not
funded by Grants up to the Party's respective Project Capital Costs Contribution as
defined herein; and funding of the costs to operate, maintain, and repair the Pipeline
when it is placed into service, including without limitation on oin environmental
mitigation,_ maintenance and monitoring costs identiTed in the approved CEQA
documents for the Project, ,facility failures or replacements and costs related to lawsuits
or regulatory actions associated with the Pipeline, its operation, and any discharges into
the Pipeline (including discharges of hazardous materials) that are unrelated to any
Party's improper or negligent act ( "O &M Costs "). O &M Costs does not include the
Project's share of the cost of operating the Main Street pump station and the San
Joaquin Marsh recirculation pumps (" IRWD's Supplemental Contribution ")."
1.4 Section 1.5 of the Agreement is hereby amended in its entirety to read as follows:
"1.5 Operation and Maintenance. If the Project is constructed, IRWD shall operate
and maintain the Pipeline from and after acceptance of the completed Pipeline solely for
the exclusive, mutual use and benefit of the Parties. During the term of the Agreement,
IRWD shall annually contribute O &M Costs in the amount of $60,000 increased each
year by the same percentage increase as reflected in the Consumer Price Index (All
Items) for the Anaheim -Long Beach Area, published by the United States Department of
Labor, Bureau of Labor Statistics, or if the same shall no longer be published, the most
nearly equivalent official index published by said Bureau or its successor or equivalent
government agency ( "IRWD's O &M Contribution')." In addition to IRWD's O &M
Contribution, IRWD shall pay IRWD's Supplemental Contribution.
1.5 The cost of the supplemental water supply to the San Joaquin Marsh is excluded
from the definition of "Capital Costs" as amended in Section 1.2 hereof, provided, however, that
should a determination be made by IRWD that such supplemental water supply is necessary to
satisfy the requirements of the approved CEQA documents for the Project, IRWD shall notify
the other Parties of such determination, and the Parties shall promptly act to process an
amendment to the Agreement to increase the Funding Parties' respective Project Capital Cost
Contribution consistent with each Funding Party's obligation to act in good faith and to not
unreasonably refuse to amend the Agreement pursuant to Section 5.3, as reasonably required to
fund a Capital Cost increase necessary to pay for such supplemental water supply.
Section 2. Amendments Pertaining to Responsibility For Operation and Maintenance of
the Project and Suspension of Project Operation. Section 1.6 of the Agreement is hereby
amended in its entirety to read as follows:
"1.6. Suspensions.
1.6.1 IRWD may temporarily suspend operation of the Project due to an
emergency or scheduled or unscheduled maintenance. In the event of suspension
IRWD shall use reasonable efforts to restore operation and maintenance of the Project
as soon as is reasonably possible. IfIRWD suspends operation of the Project due to
emergency or scheduled or unscheduled maintenance and does not use reasonable
efforts to restore normal operations and maintenance as soon as is reasonably possible
then IRWD shall be financially responsible for any loss of grant funding to the Project
that may result from such suspension provided however, IRWD shall not be responsible
if notwithstanding its reasonable efforts the resumption ofnormal operations and
maintenance is prevented by a Force Maieure Event as that term is defined in Section
1.4.3.
1.6.2 IRWD shall notify the Funding Parties promptly of the occurrence of
unforeseen increases in O &M Costs extemal operating expenses, regulateF�, ^ nditi^~°
or ^- faeility failures that materially increase the O &M Costs over and above
IRWD's O &M Contribution, and shall identify the estimated additional O &M Costs, and
may request that each Funding Party indicate its willingness to fund its proportionate
share of such increased O &M Costs as shown in the column entitled "Flow -based
Percentage" in Exhibit B including the amount of increased O &M Costs that would be
the share of any Funding Parties that do not provide a commitment as specified in the
following sentence. If IRWD has not received a commitment pursuant to Section 6 from
any Funding Parry to fund its proportionate share of the additional O &M Costs within
90 days of such notice, IRWD may suspend such non - committing Funding Party's right
to use the Pipeline and Nitrogen and Selenium Offsets and/or Nitrogen and Selenium
Credits generated by the Proiect until such commitment is received and anvpayment that
has become due is made in full, together with payment of any unpaid interest accrued on
the portion of the delinquent payment that remains outstanding, calculated as set forth in
Section 4. I. Upon such payment IRWD shall apportion and apply such amount and
accrued interest to reimburse itselffor any funds IRWD has advanced in excess of the
IRWD O &M Contribution and then to the Funding Parties who previously paid the
delinquent share operation of the PrE, eet upen of F ., er than 14 .lays priOr ,..:tte-H
^e of suspension to the Funding-Paities. During a suspension, each Funding Party
whose rights have been suspended of the Pai4ieswill be responsible for finding and
arranging an alternate means of disposal of its respective nitrogen and selenium
discharges, and for payment of any fines, penalties or costs incurred by that Party as the
result of a suspension. A Funding Party that pays all or part of another Funding Party's
proportionate share of increased O &M Costs pursuant to this Subsection 1.6 in order to
avoid suspension of its rights to use the Pipeline and Nitrogen and Selenium Offsets
and/or Nitrogen and Selenium Credits generated by the Proiect may seek reimbursement
from the non - funding Funding Party in accordance with the Dispute Resolution process
set forth in Section 17 of this Agreement. in the event of a suspension, once the ^,,....e of
.spensien has been etffe,l 1n3ARl shall use reasonable efF fts to .estere operation as
Section 3. Amendment Pertaining to Refundine of Excess Funds. Section 5.4 of the
Agreement is hereby amended in its entirety to read as follows_
"5.4 A final reconciliation and detailed accounting report will be provided by
IRWD upon completion of the Project work. Subiect to Sections 4.7.7 and 5.3 IRWD
shall invoice the Funding Parties for any shortfall in fundink of Capital Costs in
accordance with their respective Flow -based Percentages forth in Exhibit B. Any
excess funds remaining in the Project Fund after completion of the Pipeline shall be
retained by IRWD in the Proiect Fund to be applied to pay the cost of the supplemental
water supply to the San Joaquin Marsh if such supply is determined to be necessary to
satisfy the requirements of the approved CEOA documents for the Proiect. If excess
funds remain in the Proiect Fund after a period of three (3) years has elapsed from the
date of commencement of operation of the Project and a supplemental water supply to
the San Joaquin Marsh has either been completed or has not been determined to be
necessary to satisfy the requirements of the approved CEOA documents for the Proiect,
then the Parties shall meet and confer to determine whether IRWD shall release the
excess funds or continue to retain them in the Proiect Fund; if the Parties' determination
is that the excess funds should continue to be retained the Parties shall continue to
periodically meet and confer to consider release or retention of the excess funds until no
excess funds remain or a determination to retain the funds is not made. Unless upon any
such meeting and conferring the Parties agree that the excess funds shall continue to be
retained then the excess funds, minus any unexpended Grant funds, shall be reimbursed
to the Parties pro rata in accordance with their respective Exhibit B Flow -based
Percentages within forty -five (45) days of the date that the Parties so met and
con erred°rej�en. Notwithstanding the foregoing, unexpended Grant funds
shall only be disbursed according to the Grant requirements. Subject to Seetions 4.7.7
and d G Z 1RIAI l shall invaiee the Funding D.,..ties fef a shortfall in f...,.1ing of Capital
Costs in aeeerdanee with their respeetive Flow based Pereentages set fai4h in Exhibit B."
Section 4. Amendment Pertaining to Insufficiency or Return of Grant Funds. A new
Section 5.6 is hereby added to the Agreement to read as follows:
"5.6 Insufficiency or Return of Grant Funds.
5.61 In the event ofa reduction in Grant funding due to the denial or reduction
in the amount of either ofthe Grants following the award of contract for construction
of the Project (a) Irvine and/or IRWD shall immediately notify the other Parties ofsuch
reduction in Grant funding and (b) the Parties shall promptly act to process an
amendment to this Agreement to increase the Funding Parties' respective Project
Capital Cost Contribution consistent with each Funding Party's obligation to act in good
,faith and to not unreasonably refuse to amend the Agreement pursuant to Section 5.3.
5.62 If following expenditure ofpreviously received Grant funds such Grant
funds are disallowed in whole or in par[ by the zrantor for any reason, and Irvine
and/or IRWD becomes obligated to repay such Grant funds and/or interest accrued
thereon to the Qrantor, the Parties shall promptly meet and confer in good faith to
attempt to reach a mutual agreement regarding allocation ofsuch repayment amount
among the Parties. In the event a mutual agreement regarding allocation ofsuch
repayment among the Parties is not reached prior to the date such Grant funds and /or
interest must be repaid to the grantee and Irvine and/or IRWD makes such repayment,
each Funding Party shall reimburse Irvine and /or IRWD for such repayment in
proportion to its Flow -based percentage set forth in Exhibit B subject to the right to seek
reimbursement from another Party or Parties in accordance with the terms of this
Agreement including without limitation Sections 8 and 17 pertaining to indemnification
and dispute resolution, respectively."
Section 5. Revision to IRWD Indemnification Obligation. Section 8.2 of the Original
Agreement is hereby amended to add the following sentence at the end of the paragraph:
. "IRWD further agrees to indemnify, defend and hold harmless each of the Funding
Parties for any liability arising out of Irvine's implementation and administration of the Grant
Funding Contracts described in Recital E, where the liability, or potential liability, results from
IRWD's or its agents' negligence or misconduct, or IRWD's failure to operate, maintain, design,
or construct the Project in accordance with the requirements of the Grant Funding Contracts,
unless such failure is due to a Force Majeure Event, as that term is defined in Section 1.4.3."
Section 6. Revised Exhibits. The table set forth in Exhibit 1 (Exhibit B -2) attached
hereto and incorporated herein by reference will replace the table attached as Exhibit B to the
Agreement. Any reference to Exhibit B in the Agreement is deemed to be a reference to the
revised Exhibit B -2. The revised "Project Schedule" set forth in Exhibit 2 (Exhibit D -2) attached
hereto and incorporated herein by reference will replace the table attached as Exhibit D to the
Agreement. Any reference to Exhibit D in the Agreement is deemed to be a reference to the
revised Exhibit D -2.
Section 7. Intent of Amendment. Except as otherwise expressly provided herein, this
Amendment is not intended to affect any Party's rights or obligations under the Agreement,
including, but not limited to, the Parties' respective termination rights under Section 18 of the
Agreement. To the extent not otherwise expressly modified by this Amendment, the terms and
conditions of the Agreement shall remain in full force and effect.
Section 8. Counterparts. This Amendment may be executed in counterparts, each of
which shall be deemed to be an original and all of which together shall constitute one and the
same instrument.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the
Effective Date hereinabove written.
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Todd O. Litfin, City Attorney
IRVINE RANCH WATER DISTRICT, a
body corporate and politic
By:_
Name:
CITY OF IRVINE, a charter city
By:
Name:
Title:
CITY OF TUSTIN, a California municipal
corporation
By:
Name:
Title:
ORANGE COUNTY FLOOD CONTROL
DISTRICT, a body corporate and politic
By:
Name:
Title:
COUNTY OF ORANGE, a political
subdivision of the state of California
By:
Nai
7
CALIFORNIA. DEPARTMENT OF
TRANSPORTATION, an agency of the State
of California
By:
Name:
Title:
CERTIFIED AS TO FUNDS FOR THE
CALIFORNIA DEPARTMENT OF
TRANSPORTATION:
By:
Neda Saber Ansari
District Budget Manager
Exhibit I to Amendment No. 2
EXHIBIT B -2
Estimated Project Cost, Project Capital Cost Contribution, IRWD O &M Contribution, Flow -based Percentages, and Installment Payments
'Taken from the Feasibility Study.
'Project Capital Cost Contributions are not -to- exceed amounts.
3 The IRWD O &M Contribution is the estimated present value of $60,000 /year escalated annually using a 2.5% inflation rate and a 4% discount rate. The actual
IRWD O &M Contribution shall be calculated annually pursuant to Section 1.5 of this Agreement. The actual amount of IRWD's O &M Contribution calculated
under Section 1.5 of the Agreement may be different than this estimate. IRWD's O &M Contribution does not include IRWD's Supplemental Contribution,
defined in Section I.S.
4 Caltrans share of the O &M Costs for the budget year shall at no instance exceed $12,000 without an amendment to this Agreement.
5 Caltrans, Irvine, Tustin, OCFCD and IRWD are all partners in the OWOW Grant.
6 Irvine, Tustin, OCFCD and IRWD are partners in the OCTA Grant. Caltrans is not eligible to benefit from the OCTA Grant.
Estimated
Estimated
Project Capital
First
Second
Project
Cost
IRWD O &M
Flow -based
Total Project
Installment
Supplemental Installment
Pa /Grant Source
Cost'
Contribution'
Contribution
Percentage
Contribution
Payment
Installment Payment
$ 3.421.335
$ 3421,335
$3,421.335
Caltrans
'1'1 229,726
$ -
o 4
29 /e
2 7O1 Rl6
�o
$ -
$ 2-,- o']06
-
$ 2.283, 670
$ 1.283.670
$ 1,604,79
County/OCFCD
943,222
$ -
32%
9-73; 2
$ 446,068
$ 232,812 294,342
$ 1.906.597
$ 1.906 597
$ 1.339, 999
City of Irvine
81 -2,526
$ -
26%
8+2 26
$ 372,414
$ 194,184 245;928
$ 929.293
$ 929,29
$ 652,771
City of Tustin
396,033
$ -
13%
a%-,03 -3
$ 181,518
$ 95,004 449,514
Irvine Ranch Water District
$ -
$ 1,008,627
0
$ 1,008,627
n/a
n/a n/a
Proposition 84 Grant'
$ 1,000,000
n/a
n/a
$ 1,000,000
$ -
$ - $1,000,000
Orange County Transportation
Agency Gran t6
$ 3,273,105
n/a
n/a
$ 3,273,105
$ -
$ - $3,273,105
$11,814,000
$ 12,814.000
$ 13.822.627
$11,292,000
Total
81678,64-6
9,478,61+
$1,008,627
100
968744
$1,000,000
$ 522,000 ',t°o-.,�"
'Taken from the Feasibility Study.
'Project Capital Cost Contributions are not -to- exceed amounts.
3 The IRWD O &M Contribution is the estimated present value of $60,000 /year escalated annually using a 2.5% inflation rate and a 4% discount rate. The actual
IRWD O &M Contribution shall be calculated annually pursuant to Section 1.5 of this Agreement. The actual amount of IRWD's O &M Contribution calculated
under Section 1.5 of the Agreement may be different than this estimate. IRWD's O &M Contribution does not include IRWD's Supplemental Contribution,
defined in Section I.S.
4 Caltrans share of the O &M Costs for the budget year shall at no instance exceed $12,000 without an amendment to this Agreement.
5 Caltrans, Irvine, Tustin, OCFCD and IRWD are all partners in the OWOW Grant.
6 Irvine, Tustin, OCFCD and IRWD are partners in the OCTA Grant. Caltrans is not eligible to benefit from the OCTA Grant.
Exhibit 2 to Amendment No. 2
EXHIBIT D -2
Anticipated Schedule for Project Work
Task
Date
Award of Project Design Contract
January 2014
Phase 1 - Completion of design
January 2015
Phase 1— Advertise Project
February 2015
Phase 1— Approval of CEQA and
Award Construction Contract
June 2015
Phase I — Complete Design of
Environmental Compliance Mitigation
July 2015
identified in the approved CEQA
documents for the Project excluding
the supplemental water 5upply to the
San Joaquin Marsh
Phase 2 - Construction of Project
July 2015- November 2016
Operations and Maintenance
December 2016 -June 2036
Peters Canyon Channel Water Capture and Reuse Pipeline
Project Number 21163 (4985)
Total Project Costs for Phase 1 and Phase 2
March 20 2015
PHASE 1
Design Support Costs _
Total amount per Agreement Amendment 11
Total Cost
$ 1,302,311
Total Design Costs
$ 1,302,311
PHASE 2
Construction Management and Inspection Costs _
IRWD Construction Management 2
$
Total Cost
$
293,000
IRWD Inspection z
$
145,000
Engineering Support (Tetra Tech)
$
222,250
Total Construction Management and Inspection Costs
$
660,250
Construction Support Costs _ _
Geotechnical Support (NMG)
$
Total Cost
$
128,326
Surveying Support (Hunsaker)
$
115,160
Pavement Inspection and Testing (Labelle-Marvin)
$
20,658
Environmental Support (ESA)
$
53,550
Total Construction Support Costs
$
317,694
Other Costs
SCE Primary Metering Labor and Material Fees
$
i
72,000
Miscellaneous Permit Fees During Construction
$
30,000
SJM Mitigation (Construction, Construction Management, Inspection,
Environmental Support)
I $
635,000
Total Other Costs
$
737,000
Construction Costs - - Total Cost
E.J. Meyer Company, Inc. - — _ _ _ - -- •- - - -- -- $ - 7,877,777
Total Construction Costsl $ 7,877,777
Construction, Management, Inspection, Support, and Other Costsl $ 9,592,721
20% Contingency on Construction, Management, Inspection,
Support, and Other Costs $ 1,918,544
Total Phase 2 Cost I $ 11,511,265
PHASE 1 AND 2
Total Project Cost 1 $ 12,813,576
1 Design costs include 20% contingency.
2 78.6% G&A charges included.