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Home My WebLink About07 APPROVE AGREEMENT BETWEEN CITY OF TUSTIN AND IRWD - SERVICE CONNECTION OC58, WELL 21 & 22 i '� AGENDA REPORT Revedeldm ,� � City Manager tISt1 Finance Director N/A MEETING DATE: JUNE 2, 2015 TO: JEFFREY C. PARKER, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: APPROVE AGREEMENT BETWEEN THE CITY OF TUSTIN AND IRVINE RANCH WATER DISTRICT FOR RELOCATION OF SERVICE CONNECTION OC-58, MITIGATION OF WELL 21 AND 22 IMPACTS, AND EXCHANGE OF TUSTIN LEGACY WELL SITES SUMMARY In conjunction with the development of MCAS Tustin, the City of Tustin is constructing public street improvements that extend Warner Avenue east from the intersection of Red Hill Avenue to Tustin Ranch Road. Within the intersection of Red Hill, lies a water service turn-out connection designated as OC-58 to Irvine Ranch Water District (IRWD) from the water distribution system of the Metropolitan Water District of Southern California (MWD) which must be abandoned and relocated, together with an IRWD Well designated as 29H1. In lieu of having the City relocate OC-58 near its present location, the City and IRWD have determined that the City will remove OC-58 and Well 29H1 and convey sites to IRWD and MWD for future relocation. Taking into consideration two previously executed agreements with IRWD for Cooperative Implementation of IRWD Well 21 & 22 Groundwater Treatment Project (Wells 21 and 22 Agreement), dated April 4, 2011 and the Sub-Area Master Plan/Well Site Exchange Agreement (SAMP/WSEA), dated December 16, 1996, the costs for relocation, construction and other cost obligations of both City and IRWD will be applied as offsets and satisfied by a net payment from IRWD to the City. Additionally, several timeframes contained in the SAMP/WSEA have expired and both parties desire to amend and restate the executory provisions of the SAMP/WSEA as it relates to Tustin Legacy and modifications in IRWD's facilities planning for the orderly development thereof. The attached Agreement was presented and approved by IRWD Board of Directors on Tuesday, May 26, 2015. RECOMMENDATION It is recommended that the City Council: 1. Approve Agreement between City and IRWD (Agreement) for relocation of service connection OC-58 and mitigation of Well 21 & 22 impacts, and amending and restating agreement for preparation of SAMP/WSEA of Tustin Legacy well sites and authorize the Mayor and City Clerk to execute the Agreement on behalf of the City; and Approval of IRWD Agreement for 0C-58 Well Sites June 2, 2015 Page 2 2. Adopt Resolution No. 15-30 approving an Agreement between the CITY and IRWD for Relocation of Wells, the Granting of Easements and License related thereto to IRWD and the Acceptance of Quitclaim Deeds from IRWD related thereto. FISCAL IMPACT Benefits associated with the proposed action include: 1. No cost to the City for the future relocation and replacement of OC-58 and IRWD Well 29H1; 2. Satisfaction of Wells 21 and 22 Agreement; 3. Resolution of past and future Sub-Area Master Plan (SAMP) costs; 4. Well site exchanges to satisfy IRWD relinquishment of Well 29H1 and Well TIC-93 and to satisfy relinquishing of four future well sites as stipulated in the SAMP/WSEA in exchange for one new well site currently located in the northwest corner of the Veterans Sports Park at Tustin Legacy; and 5. A net offsetting cost payment from IRWD to the City in the amount of $88,460. CORRELATION TO THE STRATEGIC PLAN This Agreement contributes to the fulfillment of three goals in the City's Strategic Plan. First, is contribution to the fulfillment of the City's Strategic Plan Goal A: Economic and Neighborhood Development; specifically the project implementation of Strategy #1 which, among other items, is to develop critical phases of Tustin Legacy. Secondly, is implementation of Goal D, Strategy #2 by working collaboratively with agencies to address issues of mutual interest and concern. Lastly, the Agreement addresses Goal B, Strategy #3 to ensure public safety and protection of assets through continuous maintenance and improvement of public facilities. DISCUSSION AND BACKGROUND In conjunction with the development of MCAS Tustin, the City is constructing public street improvements that will extend Warner Avenue east from Red Hill Avenue to Tustin Ranch Road. A water service turn-out connection, located in the intersection of Warner/Red Hill, to Irvine Ranch Water District (IRWD) from the Metropolitan Water District of Southern California (MWD), designated as 0C-58, providing service to IRWD from MWD, together with an existing IRWD Well, designated as 29H1, are situated within the proposed easterly Warner Avenue alignment at Red Hill, requiring abonnement and relocation. In lieu of requiring City's Intersection project to relocate 0C-58 near its present location, the Parties have determined that the City will remove, demolish and/or abandon in place the existing IRWD and MWD portions of the 0C-58, along with IRWD Well 29H1, and that the City will convey sites to IRWD and MWD for the future relocation of the 0C-58 behind the curb and gutter at the Intersection, assume the cost of such relocation of OC-58 and convey a site to IRWD as a replacement well site for 29H1, with such costs, construction Approval of IRWD Agreement for OC-58 Well Sites June 2, 2015 Page 3 and other cost obligations of the Parties to be applied as offsets and satisfied by a net payment, as provided in the Agreement. The City and IRWD also entered into that certain Agreement For Cooperative Implementation of IRWD Well 21 & 22 Groundwater Treatment Project, dated April 4, 2011 (Wells 21 and 22 Agreement), to provide a framework and methodology for cooperation in the quantification and adaptive management of the potential for the increased production from IRWD's Wells 21 & 22 Project to result in increased drawdown and resultant production losses and/or constraints upon the production capability of the City's existing domestic water wells. The City and IRWD have identified energy cost payment, equipment modification and well replacement cost participation measures that they agree will satisfy and discharge the adaptive management requirements of the Wells 21 and 22 Agreement, and wish to memorialize the calculation and implementation of such measures as part of the offsetting costs provided in this Agreement, in order to satisfy and discharge the Wells 21 and 22 Agreement. The City and IRWD also entered into a certain Agreement dated on or about December 16, 1996 identified as the Sub-Area Master Plan/Well Site Exchange Agreement (SAMP/WSEA), pursuant to which, among other things, the Parties recited and/or agreed as follows: 1. IRWD would advance funds to prepare and complete a SAMP for the Tustin Legacy project to be developed on MCAS Tustin, subject to consultation and a schedule agreed upon between the Parties; 2. Costs for preparation of the SAMP by IRWD would not exceed $60,000 absent a mutually approved change order and would be borne by the City; 3. IRWD's desire to relinquish its existing property on MCAS Tustin, including four abandoned IRWD water wells, and to receive in exchange four new well sites generally located parallel to Barranca Parkway in Planning Areas 11, 12, 14 and 19 as well as an existing well site leased by the Marine Corps to Asomi Farms; 4. Although the City did not have the ability to negotiate an exchange of the new well sites, the City was able to require that the new well sites 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 as conditions of development approvals or sales/conveyances of the affected property in the Specific Plan area; and 5. The Parties agreed upon a process for City to receive credit against required reimbursement of IRWD costs for the SAMP in return for requiring property owners to dedicate such new well sites and easements. IRWD completed the initial SAMP for the Tustin Legacy project anticipated by the SAMP Agreement in December 1999, for which the City was responsible for reimbursement of costs to IRWD and subsequently completed reiterations of the SAMP dated April 2008, for Tustin Legacy and financed by the City's then-acting master developer. Approval of IRWD Agreement for 0C-58 Well Sites June 2, 2015 Page 4 In light of the expiration of several of the time frames identified in Section 5 of the SAMP/WSEA, delays in the originally anticipated schedule for development at Tustin Legacy, and modifications in IRWD's facilities planning for groundwater extraction in the vicinity of MCAS Tustin, the City and IRWD each desire to amend and restate the executory provisions of the SAMP/WSEA as set forth in the Agreement, in order to satisfy and discharge such agreement. The Agreement was approved by the IRWD Board of Directors on Tuesday, May 26, 2015 and has been reviewed and approved as-to-form by the City Attorney. As / oou• Stack, P.E. OW: t. •f Public Works/City Engineer Attachment(s): 1. Agreement between the City of Tustin and Irvine Ranch Water District for 0C-58 and Mitigation of Wells 21 & 22 Impacts and Amending and Restating Agreement for Preparation of SAMP and Exchange of Tustin Legacy Well Sites 2. Resolution No. 15-30 Approving an Agreement between the City of Tustin and Irvine Ranch Water District for Relocation of Wells, the Granting of Easements and License Related Thereto, and the Acceptance of Quitclaim Deeds Related Thereto S'.\City Council Items\2015 Council Items\06-02-2015\Approval of IRWD Agmt far OC-58 and Exchange of Well Sites\CC Memo Approval of IRWD Agmt for OC-58 Well Sites door