HomeMy WebLinkAboutCC 5 NITRATE DEMO 12-03-84 ENDA co.s., CALENDAR
NO. 5
~ ~ 12-3-84
Inter- Corn
TO:
FROM:
SUBJECT:
WILLIAM HUSTON, CITY MANAGER
BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
NITRATE DEMONSTRATION PROJECT AGREEMENT
RECOMMENDATION:
That the Tustin City Council, at their meeting of December 3, 1984, authorize the
Mayor to execute the Nitrate Demonstration Project Agreement and direct staff to
forward said Agreement to the Orange County Water District Board for their
execution.
BACKGROUND:
In past years, the Tustin Water Service (and Tustin Water Works) has experienced
an on-going problem with high nitrate levels in certain areas of the ground water
basin within the Tustin area. Similarily, the Orange County Water District
(O.C.W.D.) has experienced these high nitrate levels within other areas throughout
the county.
The city currently has four wells that are not operational due to high levels of
nitrate in certain areas of the ground water basin. Additionally, two more wells
are approaching the allowable limit of nitrate levels as governed by the State
Health Department. As a result of these events, staff has been working with the
O.C.W.D. staff to develop a plan for the O.C.W.D. to either participate in the
drilling of new wells or in the construction of a nitrate removal facility.
DISCUSSION:
The attached Agreement, which has been Prepared by both the City Attorney's office
and legal counsel for O.C.W,D., provides for the construction of a nitrate
demonstration project which will provide for the construction of two different
type facilities for the removal of nitrates from water extracted from the ground
water basin.
The Agreement specifically provides for the following:
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O.C.W.D. will act as lead agency for the design and construction of the
two facilities.
Two separate processes will be utilized to remove the nitrates from
groundwater, the "ion exchange process" and the "reverse osmosis
process".
Tustin shall provide the site for the construction of said facility at
235 E. Main St., the location of well No. 2 and No. 3.
NITRATE DEMONSTRATION PROJECT AGREEMENT
NOVEMBER 28, 1984
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O.C.W.D. will provide all supervision, technical, engineering and
analytical support to Tustin during the project demonstration period (two
years).
5. Tustin will be responsible for the operation and maintenance for the
project demonstration period (two years).
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Feasibility of the ion exchange and/or reverse osmosis facilities shall
be determined by comparing the cost per acre foot of water produced by
these facilities with the cost per acre' foot of purchased water from the
Metropolitan Water District.
Based upon feasibility of the projects, the city shall acquire either one
or both of the facilities from O.C.W.D. at the actual cost of design and
construction.
8. Purchase of said facilities will be either by cash payment or by
amortizing the payment over five years at 8% simple interest.
The preliminary cost estimate for both facilities is $500,000~00 with each
facility costing about $250,000.00. Based upon the following:
'Current Pumping Cost ...... ' ................. $ 1lO/AC.FT.
Estimated Treatment Cost .................. $ 40/AC.FT.
TOTAL GROUNDWATER COST ]~-~q~)~"~'.
Current Metropolitan Water District Cost --- $ 251/AC.FT.
Well No. 2 and No. 3 Annual Production
(8 hours per day) .......... . ................ 1400 AC.FT/YR.
It will take approximately 3.5 years to recover the purchase cost of both
facilities. More important, it provides a more constant and reliable source of
water from the ground water basin in lieu of depending upon-imported (purchased
water).
It is suggested that a sinking fund be established commencing with the 1985-86
budget period to establish a purchase program in the event both facilities are
proven feasible projects.-
Bob Ledendecker
Director of Public Works/City Engineer
BL:jr
Attachment
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NITRATE DEMONSTRATION PROJECT AGREEMENT
THIS AGREEMENT is entered into as of , 1984 by and
between the ORANGE COUNTY WATER DISTRICT, a special governmental district
organized and existing pursuant to the Orange County Water District Act,
Chapter 924, 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. Two-thirds of all drinking water currently used within the Orange
County coastal plain is provided from groundwater. A recent survey of existing
groundwater quality has indicated an ever-increasing concentration of nitrate
in those waters used for municipal supply. Inasmuch as Orange County is
located in a semi-aris area, it is essential that all reasonable effort be put
forth to protect the quality of the groundwater supply and to provide for
maximum utilization of that resource.
B. The United States Environmental Protection Agency ("USEPA") has
adopted primary drinking water standards which include limits for nitrate.
Water containing nitrate concentrations in excess of 45 mg/L are not suitable
for municipal domestic purposes.
C. Tustin operates a water system for the purpose of delivering potable
water to its customers, and obtains most of its water by pumping groundwater
from wells for delivery to its customers.
D. Tustin as well as many other groundwater users within the Orange
County groundwater basin have lost the use of some of their wells due to the
presence of nitrate in quantities exceeding USEPA drinking water standards.
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E. The Legislature of the State of California has vested in OCWD the
statutory responsibility to manage, regulate, replenish, and protect the
quality of the subterranean groundwater supplies within the boundaries of OCWD.
F. OCWD desires to test the feasibility of an ion exchange process and a
reverse osmosis process for the removal of nitrates from the groundwater. Due
to the fact that inadequate data exists with reqard to the feasibility of
either process, OCWD desires to construct and test feasibility of each such
I)rocess. The preliminary estimated cost of designing and constructing both an
ion exchange process and a reverse osmosis process is approximately Five
Hundred Thousand Dollars ($500,000.00), and a more accurate determination of
the cost of the design and construction of those processes cannot be determined
until the completion of preliminary project design.
G. OCWD and Tustin mutually recognize that the construction,
demonstration, and operation of a feasible treatment technology for removing
nitrate from groundwater is an important integral part of extending existing
groundwater supplies within the Orange County groundwater basin, and desire to
obtain the necessary experience and cost information to determine the
feasibility of removing nitrate from groundwater.
H. In an attempt to mitigate the water quality problems created by
nitrate in increasing concentrations throughout many areas of the Orange County
groundwater basin, OCWD and Tustin accordingly desire to enter into this
Agreement for the design, construction and operation of a demonstration
facility for the purpose of determining the feasibility of removing nitrates
from groundwater under processes involving ion exchange and reverse osmosis, in
order to meet drinking water standards.
NOW, THEREFORE, in consideration of the facts recited above and the
covenants, conditions and promises contained herein, the parties hereto agree
as follows:
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SECTION ONE: DESIGN OF PROJECT FACILITIES
1.1 OCWD shall design and prepare plans and specifications, or cause such
design and plans and specifications to be prepared by contract, for the
construction and operation of facilities to remove nitrate from the
groundwater produced by Tustin Well No. 2 and Tustin Well No. 3, the location
of which wells are depicted on the plan attached hereto as Exhibit "1" (such
facilities are hereinafter referred to as the "Project Facilities").
1.2 The Project Facilities shall comprise facilities to remove nitrate
from groundwater by means of two separate processes, the ion exchange process
and the reverse osmosis process. In this regard, OCWD shall design facilities
for both the ion exchange process, in which groundwater is passed through an
ion exchange resin which absorbs and removes nitrate from the groundwater
(hereinafter, the "Ion Exchange Facility"), as well as a facility for the
reverse osmosis process, in which groundwater passes through reverse osmosis
membranes which remove nitrate from the groundwater (hereinafter, the "Reverse
Osmosis Facility").
1.3 If OCWD determines to retain the services of a consultant or
consultants for the design of, and the preparation of plans and specifications
for, the Project Facilities, prior to the selection OCWD/and Tusttn shall agree
upon which consultant or consultants shall be retained.
1.4 Upon completion of such design, OCWD shall furnish to Tustin the
plans and specifications for the Project Facilities, as well as a preliminary
cost estimate of the construction of the Project Facilities (hereinafter, the
"Engineer's Cost Estimate") for Tustin's review and comments. Tustin shall
have thirty (30) days from receipt of such plans and specifications and
Engineer's Cost Estimate to submit comments and recommendations to OCWD
regarding the plans and specifications.
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Either Tustin or OCWD may terminate this Agreement within thirty (30) days of
the submission to Tustin of the plans and specifications and Engineer's Cost
Estimate for the Project Facilities if either party determines, in its sole
discretion, that the Engineer's Cost Estimate renders the project infeasible.
Any determination of infeasibility shall be transmitted to the other party in
writing within this thirty (30) day period. Except for this determination of
the project feasibility based upon the Engineer's Cost Estimate, however, OCWD
retains the right, in its sole discretion, to approve the design of and plans
and specifications for the Project Facilities.
1.5 Upon approval of such design and plans and specifications by its
Board of Directors, OCWD shall transmit to Tustin copies of the approved design
and plans and specifications for the Project Facilities.
1.6 Except as hereinafter provided in Section Five, OCWD shall be
responsible for all costs incurred in the design of and the preparation of
plans and specifications for the Project Facilities.
SECTION TWO: CONSTRUCTION OF PROJECT FACILITIES
2.1 Immediately upon approval by its Board of Directors of the plans and
specifications for the Project Facilities, OCWD shall advertise for bids, and
award a contract, for the construction and installation of the Project
Facilities. In this regard, ocWD shall make all reasonable efforts to award
such construction contract within one (1) year of the date of this Agreement.
2.2 OCWD shall be the lead agency and the contracting party for the
construction of the Project Facilities, and shall be solely responsible for
obtaining all permits, licenses and approvals including those related to
applicable environmental laws, if any, necessary for the construction of the
Project Facilities. Except as hereinafter provided in Section Five, OCWD shall
be responsible for all costs incurred in the construction of the Project
Facilities.
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2.3 Tustin shall provide OCWD and the contractor or contractors
constructing and installing the Project Facilities reasonable access to the
site of the Project Facilities, as depicted on the plat attached hereto as
Exhibit "1".
2.4 At all times during construction of the Project Facilities, OCWD
shall permit authorized representatives of Tustin access to the construction
site to inspect the construction of the Project Facilities.
2.5 OCWD shall require all contractors involved in the construction of
the Project Facilities to obtain liability insurance, builders all-risk
insurance, and workers' compensation insurance; and OCWD and Tustin, together
with their respective officers, employees, agents and representatives, shall be
named as additonal insureds on each such policy of insurance.
2.6 Within ninety (90) days of the completion of construction of the
Project Facilities and their acceptance by the Board of Directors of OCWD, OCWD
shall transmit to Tustin a notice of the completion of the Project Facilities
(hereinafter referred to as the "Project Facilities Completion Notice"),
together with a certified statement of the total costs paid by OCWD for the
design and construction of the Project Facilities, including all costs paid to
consultants and contractors, all permit and engineering costs, and all other
actual costs incurred by OCWD with respect to the design and construction of
the Project Facilities, but excluding all costs attributed to work or services
performed by employees of OCWD (such statement of the amount of the toal costs
paid by OCWD for the design and construction of the Project Facilities is
hereinafter referred to as the "Total Project Cost Statement"). OCWD's Total
Project Cost Statement shall clearly indicate the costs attributed to the
design and construction of the Ion Exchange Facility, and the costs attributed
to the design and construction of the Reverse Osmosis Facility.
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This certified Statement of Total Project Cost shall serve as the basis for the
determination in Sections Four and Five hereinbelow of both Project Facility
feasibility and any amounts to be paid by Tustin to OCWD for the acquisition of
the Ion Exchange Facility and/or the Reverse Osmosis Facility.
SECTION THREE: OPERATION OF PROJECT FACILITIES DURING
DEMONSTRATION PERIOD
3.1 OCWD shall, during the Project Demonstration Period, provide
supervision and technical, engineering and analytical support to Tustin, at no
cost to Tustin, with regard to the operation and maintenance of the Project
Facilities. In this regard, OCWD shall monitor the operation of the Ion
Exchange Facility and the Reverse Osmosis Facility, and conduct periodic
analyses of the water treated by the Ion Exchange Facility and the Reverse
Osmosis Facility.
3.2 Tustin shall be responsible for the operation and maintenance of the
Project Facilities, under the supervision of OCWD, from the date of receipt of
the Project Facilities Completion Notice and for a period of two (2) years
thereafter (such period of time is hereinafter referred to as the "Project
Demonstration Period').
3.3 Tustin shall be responsible for obtaining all permits and approvals
trequired for the operation of the Project Facilities.
3.4 Tustin shall, at all times during the Project Demonstration Period,
operate and maintain the Project Facilities in accordance with the highest
professional standards and generally accepted maintenance and operation
principles. Tustin further shall, at all times during the Project
Demonstration Period, provide personnel sufficient in numbers and
qualifications to operate and maintain the Project Facilities.
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3.5 Tustin shall be responsible for all costs incurred in the operation
and maintenance of the Project Facilities, including, but not limited to,
labor, materials, and electric energy (hereinafter referred to as the "Project
0 & M Costs"); and Tustin shall maintain an accounting of all Project 0 & M
Costs.
SECTION FOUR: DETERMINATION OF PROJECT FEASIBILITY
4.1 Upon the conclusion of the Project Demonstration Period, Tustin and
OCWD shall jointly determine the feasibility of the Ion Exchange Facility and
the Reverse Osmosis Facility in the manner set forth in this Section.
4.2 The feasibility of both the Ion Exchange Facility and the Reverse
Osmosis Facility shall be determined by comparing the cost per acre foot of
water produced from Tustin Well No. 2 and Tustin Well No. 3 and treated by
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lh (hereinafter, "groundwater production cost") with the cost per acre foot
1§ charged by the Metropolitan Water District of Southern California, the
16 Municipal Water District of Orange County, and East Orange County Water
17 District for the delivery to Tusttn of treated, non-tnterruptible water
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cost, Tustin shall include all costs associated with the production
20 and treatment of such water, including the cost of production, the
21 replenishment assessment and basin equity assessment imposed by OCWD upon such
22 water, and the Project 0 & M Costs.
23 4.3 Either or both the Ion Exchange Facility and the Reverse Osmosis
24 Facility shall be determined and deemed to be feasible if the groundwater
25 production cost for either facility is less than the imported water cost. The
26 determination of feasibility of both the Ion Exchange Facility and the Reverse
27 Osmosis Facility shall be made within thirty (30) days of the conclusion of the
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4.4 If either the Ion Exchange Facility or the Reverse Osmosis Facility
is determined not to be feasible, as set forth in this Section Four, OCWD
shall, at its sole cost, remove such facility within one hundred twenty (120)
days of the date on which infeasibility is determined, and Tustin shall have no
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SECTION FIVE: ACQUISITION OF AND PAYMENT FOR PROJECT FACILITIES
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5.1 Tustin shall acquire and purchase the Ion Exchange Facility if it is
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determined, pursuant to Section Four hereinabove, that the Ion Exchange
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Facility is feasible. In consideration for the acquisition of the Ion Exchange
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Facility, Tustin shall pay to OCWD those amounts set forth in the Total Project
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Cost Statement which are attributable to the design and construction of the Ion
Exchange Facility.
5.2 Tustin shall acquire and purchase the Reverse Osmosis Facility if it
is determined, pursuant to Section Four hereinabove, that the Reverse Osmosis
Facility is feasible. In consideration for the acquisition of the Reverse
Osmosis Facility, Tustin shall pay to OCWD those amounts set forth in the Total
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Project Cost Statement which are attributable to the design and construction of
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the Reverse Osmosis Facility.
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5.3 Tustin shall have the option of purchasing the Ion Exchange Facility
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and/or the Reverse Osmosis Facility by cash payment or by amortizing the
payment therefor over five (5) years, at eight percent (8%) simple interest.
Tustin shall inform OCWD in writing of the means by which Tustin shall pay for
Ion Exchange Facility and/or the Reverse Osmosis Facility within thirty (30)
days of the date on which the feasibility of each such facility is determined.
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SECTION SIX: MISCELLANEOUS
6.1 Notice: Any notice or instrument requird to be given or delivered by
this Agreement shall be given or delivered by personal delivery or by
depositing the same in any United States mail depository, postage prepaid,
addressed as follows:
If to OCWD:
Orange County Water District
10500 Ellis Avenue
P.O. Box 8300
Fountain Valley, CA 92728
Attn: Netl M. Cline, Secretary Manager
If to Tustin:
City of Tustin
300 Centennial Way
Tustin, CA 92680
Attn: William Huston, City Manager
6.2 Indemnification: Each party hereto agrees to indemnify and hold the
other party harmless from and against any damages to any third person or
property, including consequential damages caused by the performance of this
Agreement or any act or ommission undertaken in the performance of this
Agreement.
6.3 Successors and Assigns: All of the terms, conditons and provisions
insure to the benefit of, and be binding upon, OCWD and
of this Agreement shall
Tustin.
6.4 Integration:
This Agreement represents the entire understanding of
)CWD and Tustin as to those matters contained herein. No prior oral or written
mderstanding shall be of any force or effort with respect to those matters
covered by this Agreement.
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This Agreement shall be governed by the laws of the State of California and
construed as if drafted by both OCWD and Tustin. This Agreement may not be
modified, altered or amended except in writing by OCWD and Tustin.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.
ORANGE COUNTY WATER DISTRICT
BY
President
ATTEST:
BY
Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER
BY
Genera) counsel
CITY OF TUSTIN
BY
Mayor
ATTEST:
BY
City Cler~
APPROVED AS TO FORM:
ROURKE & WOODRUFF
BY
City Atorney
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