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HomeMy WebLinkAbout06 IRWD/TUSTIN AG 12-16-96 NO. 6 · 12-16-96 ,' Intor-Com DATE: DECEMBER 16, 1996 TO: FROM' SUBJECT: WILLIAM A. HUSTON, CITY MANAGER CHRISTINE A. SHINGLETON, ASSISTANT Cll'Y MANAGER AGREEMENT BETWEEN THE CITY OF TUSTIN AND THE IRVINE RANCH WATER DISTRICT SUMMARY: Approval of the Agreement will permit Irvine Ranch Water District (IRWD) to proceed with preparation of a Water and Sewer Sub-Area Master Plan (SAMP) for MCAS-Tustin. RECOMMENDATION: Authorize the City Manager or Assistant City Manager to execute an agreement between the City of Tustin and Irvine Ranch Water District for preparation of a SAMP for MCAS-Tustin. FISCAL IMPACT: IRWD wi[[ advance to the City funds necessary to complete the SAMP. The City would not be required to reimburse IRWD for the costs for the SAMP (estimated to be $60,000) if the City requires property owners to dedicate new well sites and easements to IRWD within the MCAS-Tustin project area. City would be required to reimburse IRWD within 90 days after IRWD notifies City that new well sites are not deemed necessary or by October 1, 2004, in the event well sites are stitl needed but not dedicated. BACKGROUND: The IRWD currently supplies domestic and reclaimed water to MCAS-Tustin and provides sewer facilities to a portion of MCAS-Tustin. As a follow-up to the MCAS- Tustin Community Facilities Report, and as input to preliminary engineering design work underway on needed Phase I infrastructure improvements at the base, the City was desirous of having IRWD proceed with more detailed planning for domestic water, reclaimed water and sewer to serve the redevelopment area. This wi[[ permit phased installation of these facilities to be coordinated with street improvements and installation of other utilities, and the costs can be more clearly defined for the development of a financing plan to fund these fad[ities. Agreement Between the City of Tustin and the IRWD December 16, 1996 Page 2 Prior to preparation of final design plans for water and sewer facilities, the preparation of a Sub-Area Master Plan (SAMP) is required. Since the /~CAS-Tustin project area is not currently part of a developing improvement district, costs for the SAMP will need to be borne by'the City at this time. .The City has requested that IRWD move forward with the SAMP and advance the funds necessary to complete it (approximately $60,000). City staff has suggested that the City could dedicate well sites in the future at MCAS-Tustin to compensate IRWD for the cost of preparing the SA/~P. The specific conditions of such an arrangement to accomplish this are presented in the attached Agreement which has been reviewed by the city attorney and ratified by IRWD's Board of Directors. cc: Tim Serlet AGREEMENT BE-rWEEN THE CITY OF TUSTIN AND THE IRVINE RANCH WATER DISTRICT FOR THE PREPARATION OF A WATER AND SEWER SUB-AREA MASTER PLAN FOR MCAS/TUSTIN 11/15/96 This Agreement is made and entered into this day of ,1996, by and between the City of Tustin, a municipal corporation, ("City") and the Irvine Ranch Water District, a California Water District ("IRWD"). RECITALS 1. The Marine Corps Air Station, Tustin ('MCAS/Tustin") is a military installation of approximately 1,600 acres, located primarily within the boundaries of the City and within the services boundaries, of IRWD. IRWD currently supplies domestic and reclaimed water to MCAS/Tustin and provides sewer facilities to a portion of MCAS/Tustin. 2. The United States Government, acting through Congress and the President, has determined to close MCAS/Tustin as of July 1, 1999. 3. Under federal law the City Council of the City is the designated Local Reuse Authority ("LRA"), charged with the authority and duty to develop a civilian Reuse Plan for MCAS/Tustin. 4. The City and IRWD have jointly identified the need to build new backbone water and sewer infrastructure system to support phased and ultimate build-out under the Reuse Plan. 5. The City desires to proceed with more detailed planning for domestic water, reclaimed water and sewer facilities at MCAS/Tustin so that the phased installation of such facilities can be coordinated with street improvements and installation of other utilities, and the costs can be defined for the development of a financing plan to fund such facilities, along with other infrastructure facilities. , ("SAMP"). IRWD has identified the need to first prepare a Sub-Area Master Plan 7. IRWD has represented that the costs for the preparation of the SAMP will need to be borne by City or a developer. 8. IRWD has property rights at MCAS/Tustin, along Redhill Avenue, to construct water wells and to convey the well water to IRWD's distribution system. IRWD has indicated its desire to abandon its existing property rights along Recihill Avenue, including four existing abandoned IRWD water wells (T1C6, T16100, 29H1, T1C93). In order to serve the development under the Reuse Plan, IRWD has indicated its desire to acquire four new well sites in the vicinity of Barranca Parkway, as well as an existing well site presently leased by the Marine Corps to Asomi farms. These desired well sites are generally located in Planning Areas 11, 12, 14 and 19 on the Reuse Plan Map. 9. While the City does not have the ability to negotiate an exchange of IRWD's existing well and pipeline property for new well sites and associated easements, the City may require that the new well sites required by IRWD to serve MCAS/Tustin be generally located in Planning Areas 11, 12, 14 and 19, and be delineated in the Specific Plan for MCAS/Tustin, and be dedicated to IRWD. Such sites would include any necessary maintenance, pipeline and access easements for each well site. Dedication of the well sites plus necessary easements could be made conditions of development approvals or sales/conveyances of the affected property in the Specific Plan area. NOW, THEREFORE, based upon the above recitals and the mutual promises and agreement covenants contained herein, the parties agree as follows: AGREEMENT . IRWD, at its costs and expense, will cause the preparation and completion of a SAMP, including the employment of consultants, as necessary. o City and IRWD shall agree upon a written schedule for completion of the SAMP, which schedule shall be attached as an Exhibit to this Agreement. . IRWD anticipates that the costs for preparation of the SAMP will not exceed $60,000, including all administrative support and project management by IRWD staff. In the event the estimated costs for completion of the SAMP exceeds $60,000, or an additional scope of work required for the SAMP is identified by IRWD during preparation of the SAMP, which requires a change order, IRWD shall notify the City. City shall review and approve said excess costs, at its discretion, which approVal shall not be unreasonably withheld. Nothing herein shall require City to approve excess costs or a change order which is not required for the.preparation of the SAMP for MCAS/Tustin. o In preparing the SAMP, IRWD agrees to consult with the City, and to not finalize said report until City has had an opportunity to review and comment on each draft. IRWD will respond to comments received from City and make such changes as are reasonable in the report. 1101-00001 34439_5 o o In consideration of IRWD's preparation of the SAMP, the City agrees to reimburse IRWD for the agreed upon costs for the SAMP as described above in Section '3, provided, however that the City shall not be required to reimburse IRWD for costs for the SAMP to the extent that the City receives credits as specified in this Section for requiring property owners to dedicate new well sites and easements to IRWD in conjunction with property sales by City (or the City's Community Redevelopment Agency) or as conditions of development approvals. The reimbursement of agreed upon costs for the SAMP shall not include interest, unless: (i) new well sites and easements are determined by IRWD not to be necessary to serve the development under the Reuse Plan; or (ii) the dedication of well sites and/or associated pipeline and maintenance easements has not taken place prior to July 1,2004. In that event City shall pay interest on the agreed upon costs for the SAMP at the average rate earned on IRWD's invested funds during each month in which a balance is outstanding, which shall be computed from the date when all expenditures on the SAMP have been made by IRWD, until reimbursement in full. The City shall receive a monetary credit for the value of dedications of new well sites and easements required by City. The extent of the monetary credit available to City shall be based on the land value of the dedication of a well site, and/or associated pipeline and maintenance easements occurring in not less than five (5) years from and after July 1, 1999. Land value shall be as determined by an appraiser selected by mutual agreement of the City and IRWD, with appraisal costs to be borne by IRWD. It is agreed that the appraisal used for purposes of the monetary credit for land dedicated or subject to easements would be undertaken prior to closure of MCAS/Tustin, and would be based on the existing condition of property prior to development and installation of new infrastructure, but after environmental clean-up of the site by the Marine Corps. Reimbursement shall be made in full by the earlier of the following: (i) within ninety (90) days after IRWD has notified City of its determination that new well sites and easements are not necessary to serve the development under the Reuse Plan, or (ii) by October 1, 2004, in the event such well sites and easements have not been dedicated by July 1, 2004 or such well sites and easements have been dedicated by July 1, 2004 but City's monetary credit for such dedications is less than the agreed upon costs of the SAMP. IRWD agrees that any monetary credit due City owing to land value dedicated or restricted, as set forth above, which exceeds the costs of the preparation of the SAMP may be applied by City as a credit against other future IRWD design and construction costs associated with the new water backbone system at the MCAS/Tustin. This Agreement has been approved by the legislative body of IRWD and City, and the persons signing on behalf of each party warrant that each has been authorized to enter into this Agreement on behalf of the party for whom they sign. 1101-00001 34439_5 . The arrangements agreed to herein are not intended to be a precedent for advancing or financing any additional costs for the water, sewer or reclaimed water service for MCAS/Tustin, and IRWD makes no commitment in that regard. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. Dated: "City" CITY OF TUSTIN, a municipal corporation APPROVED AS TO FORM: By: William Huston/Christine Shingleton City Manager/Assistant City Manager Lois E. Jeffrey City Attorney APPROVED AS TO FORM' "IRWD" IRVINE RANCH WATER DISTRICT, a California Water District 1101-00001 34439_5