HomeMy WebLinkAbout07 MASTER UTIL ADJ IRWD 1-20-04AGENDA REPORT Agenda Item 7 Reviewed: City Manager Finance Director N/A MEETING DATE: TO: FROM: SUBJECT: JANUARY 20, 2004 WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION APPROVAL OF MASTER UTILITY ADJUSTMENT AGREEMENT WITH THE IRVINE RANCH WATER DISTRICT SUMMARY The approval of a Master Utility Adjustment Agreement with the Irvine Ranch Water District (IRWD) will establish a procedure whereby IRWD reimburses the City for the costs to adjust utility manhole and valve boxes resulting from City street improvement projects. RECOMMENDATION It is recommended that the City Council approve the Master Utility Adjustment Agreement with the Irvine Ranch Water District, and authorize the Mayor and City Clerk to execute the Agreement on behalf of the City. FISCAL IMPACT There will be no direct fiscal impacts from the implementation of the Master Utility Adjustment Agreement at this time. IRWD will be responsible for payment to the City for all adjustments to their facilities in conjunction with City improvement projects. BACKGROUND The Master Utility Adjustment Agreement will establish an equitable means of payment processing to the City for IRWD utility adjustments resulting from City street improvement projects. The Agreement provides for preparation of an Addendum for each future City project that identifies the need for adjustments to IRWD valve boxes and manholes. The Addendum will specify the numbers and estimated costs associated with such adjustments. Execution of this Agreement will obligate IRWD to deposit the agreed upon estimated funds with the City for the utility adjustments prior to the bidding of each City project. The IRWD deposit amount will include a 5% allocation above the estimate to cover the cost of City administration and inspection. IRWD and the City will be protected against unbalanced bids because any bids that exceed the estimated amount by 25% will be removed from the project contract and IRWD will perform the utility adjustments with their own forces. The City Attorney has reviewed and approved the Agreement as to form. Director of Public Works/City Engineer TDS:DRK:ccg:Approval of Master Utility Adj. Agmt IRWD.doc Dana R. Kasdah ' ~ Engineering Services Manager Attachment: Master Utility Adjustment Agreement Master Utility Adjustment Agreement July 2003 Page 1 Agreement # 2004- MASTER UTILITY ADJUSTMENT AGREEMENT THIS AGREEMENT, made and entered into this th day of ,2004, BY AND BETWEEN: Irvine Ranch Water District, a California Water District formed and existing pursuant to California Water District Law, hereinafter referred to as "IRWD,' The City of Tustin, a municipal corporation, hereinafter referred to as "CITY," WITNESSETH WHERF~AS, City periodically contracts for street rehabilitation projects within the City of Tustin and within the boundaries of IRWD, each such project hereinafter referred to as a "PROJECT", and WHEREAS, such construction will necessitate the raising of water valve boxes on IRWD domestic and reclaimed water mains and raising IRWD sewer manholes to grade, as depicted on the project plans for each PROJECT incorporated by reference herein, and WHEREAS, IRWD desires City to perform the adjustment of said IRWD facilities at a cost to be agreed upon as part of each PROJECT; and WHEREAS, City is willing to include these water valve box and sewer manhole adjustments in PROJECT at IRWD's cost. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and for other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged and agreed, the parties hereto hereby agree as follows: IRWD SHALL: Deposit with CITY the estimated cost for said manhole and water valve box adjustment for each individual PROJECT. The estimated unit price for each adjustment will be an amount mutually deteimined by the parties for each PROJECT and set forth in an Addendum to this Agreement, in the form of Exhibit "A" attached hereto, for each PROJECT. Said deposit shall be made within 30 days of receipt of the fully executed Addendum to this Agreement. If the parties are unable to agree on an estimated unit price for a specified PROJECT, the PROJECT will not be governed by this Agreement and IRWD will perform the adjustments of its facilities. Master Utility Adjustment Agreement July 2003 Page 2 B. Prior to commencement of said PROJECT, insure that adequate markings are available to facilitate subsequent locating and adjusting of all the sewer manholes and water valve boxes. C. Pay the total cost for adjusting said sewer manholes and water valve boxes to grade. Said total cost will be determined by multiplying the actual unit price (as bid by the contractor) by the total number of units adjusted, plus 5% for CITY inspection and administration. To protect IRWD and CITY from unbalanced bids, regardless of the mount of the unit price bid by the contractor, IRWD shall be responsible for an actual total cost not to exceed the estimated cost stated in the Addendum plus 25%. If the actual unit price for the IRWD Facilities exceeds the estimated unit cost by more than 25%, IRWD Facilities will be removed from the contract and IRWD will coordinate the adjustment of their facilities with its own contract. D. If extra work is required, its cost will be added to the total cost, but extra work will only be performed after prior approval by IRWD's engineer or manager. IRWD will have five (5) working days to review and either approve or disapprove costs for extra work and will work to provide said decision in less than that time. CITY SHALL: A. Include in PROJECT contract docmnents items for "Adjust Sewer Manhole" and "Adjust Water Valve Box" as bid items, and through its contractor, shall adjust said sewer manholes and water valve boxes in accordance with PROJECT contract documents and IRWD standards. B. Upon completion of each PROJECT, prepare and submit to IRWD a statement of the final cost authorized by the Addendum, which statement shall include the number of units adjusted, unit price, 5% administrative fee and extra work, if any. If this final cost exceeds the deposit, IRWD shall, within 30 days of receipt of statement, pay CITY for the difference; if the final cost is less than the deposit, CITY shall, with the statement, refund the difference to IRWD. C. Cause its contractor for each PROJECT to guarantee the IRWD facilities adjustment work against defects in workmanship and material for a period of one (1) year from the date of the CITY's acceptance and, to list IRWD as an additional insured on all liability insurance and property (builders risk) insurance policies that CITY requires the contractor to provide. MUTUAL INDEMNITY: It is mutually understood and agreed that: Ao Neither CITY nor any officer, employee, or agent thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by IRWD under or in connection with any work, authority, or jurisdiction delegated to IRWD under this agreement. It is also understood that, pursuant to Government Code Section 895.4, IRWD shall fully indemnify protect, defend and hold harmless CITY and its officers, employees, agents thereof from any liability imposed for injury (as defined by Government Code Section 810.8), including attorneys fees and costs, occurring by reason of anything done or omitted to be done by IRWD under or in connection with any work, authority or jurisdiction delegated to IRWD under this agreement. Master Utility Adjustment Agreement July 2003 Page 3 B. Neither IRWD nor any officer, employee, or agent thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by CITY under or in counection with any work, authority, or jurisdiction delegated to CITY under this agreement. It is also understood that, pursuant to Government Code Section 895.4, CITY shall fully indemnify protect, defend and hold harmless IRWD and its officers, employees, agents thereof from any liability imposed for injury (as defined by Government Code Section 810.8), including attorneys fees and costs, occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this agreement. TERMINATION: Either party shall have the fight to terminate this Master Utility Agreement at any time by providing thirty (30) days prior written notice to the other party; provided, however, that unless IRWD elects othenvise, the adjustment of IRWD facilities for any PROJECT subject to an Addendum that has been executed by the parties prior to the effective date of termination shall continue to completion. IRWD shall remain obligated for the cost of the adjustments perfonued by the CITY through the date(s) of termination of this agreement and all addenda. IN WITNESS WHEREOF, CITY and IRWD have caused this agreement to be executed by the Mayor and attested to by the City Clerk; and IRWD has caused this agreement to be executed by the General Manager,, all thereunto duly authorized by the City Council and the Board of Directors, respectively. CITY OF TUSTIN A municipal corporation Dated: By: Tony Kawashima, Mayor ATTEST: City Clerk APPROVED AS TO FORM: City Attorney bt t/l/ {J IRWD A California Water District Dated: By: Paul D, Jones, General Manager ATTEST: APPROVE AS TO FORM: By: By: Secretary/Assistant Secretary Legal Counsel, IRWD Master Utility Adjustment Agreement July 2003 Page 4 ADDENDUM NO. 2004- TO MASTER UTILITY ADJUSTMRNT AGI~F.~MENT By execution of this Addendum, the parties agree that the below-identified PROJECT will be governed by thc Agreement dated , entitled "MASTER UTILITY ADJUSTMENT AGREEMENT, (the "Agreement"). PROJECT: (depicted on The Plans & Specfficatious and incorporated in this Addendum) IRWD FACIIJTIES (Number(s) of valve boxes (water and recycled water) and sewer manholes to be adjusted to grade) (depicted on The Plans & Specifications and incorporated in this Addendum) Estimated unit cost of adjusting IRWD FACILITIES: $ per valve box adjustment $ per sewer manhole adjustment Deposit amount (Numbers of Adjustments X nnlt cost for each) + 5%: $. IN WITNESS WHEREOF, the parties to the Agreement have executed this Addendum. IRVINE RANCH WATER DISTRICT By. Dated General Manager CITY OF TUSTIN Dated By. Project Manager