HomeMy WebLinkAbout09 WATER LINES/SEWER 03-15-04
AGENDA REPORT
Agenda Item
Reviewed: t£.
City Manager
Finance Director
9
MEETING DATE:
MARCH 15, 2004
FROM:
WilLIAM A. HUSTON, CITY MANAGER
PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
TO:
SUBJECT:
APPROVAL OF COOPERATION AND REIMBURSEMENT AGREEMENT WITH
THE ORANGE COUNTY SANITATION DISTRICT FOR THE CONSTRUCTION
OF WATER LINES AND DESIGN OF A SANITARY SEWER LATERAL
SUMMARY
The proposed Cooperation and Reimbursement Agreement between the City of Tustin and the Orange
County Sanitation District (OCSD) provides for the City to reimburse the OCSD for the construction and
construction administration costs associated with the City's Prospect Avenue Water Main Replacement
Project (CIP No. 6151), the Water Main Replacement Projects (CIP No. 6106), and the design of a
sanitary sewer lateral as part of the Irvine Boulevard Storm Drain Project (CIP No. 5024).
RECOMMENDATION
It is recommended that the City Council approve the Cooperation and Reimbursement Agreement with
the OCSD for the construction of the Prospect Avenue Water Main Replacement Project (CIP No. 6151)
and the Water Main Replacement Projects (CIP No. 6106), and the design of a sanitary sewer lateral as
part of the Irvine Boulevard Storm Drain Project (CIP No. 5024), and authorize the Mayor and City Clerk
to execute the document on behalf of the City.
FISCAL IMPACT
The Cooperation and Reimbursement Agreement stipulates that the City of Tustin will reimburse the
OCSD for the entire construction costs of CIP Project Nos. 6151 and 6106, including all change orders
and construction administration costs incurred by OCSD. The administrative costs are capped at a not
to exceed 5% of the total construction costs of the City's projects.
The bid for the Prospect Avenue Project was $511,114.44 and the bid for the Water Main Replacement
Projects was $154,096.56, for a total bid of $665,211.00. The OCSD's 5% construction administration
costs add $33,260.55 to this amount for a total reimbursable amount of $698,471.55. This amount does
not include change orders that may be the result of changed conditions encountered by the contractor
during construction.
During the design of the sewer project, the City requested that the connection to a sewer lateral be
included. The design of this lateraLresulted in a $2,000.00 addition to the OCSD's design budget. This
cost will be reimbursed to the OCSD as part of this agreement.
There are sufficient funds budgeted in CIP Nos. 6151,6106, and 5024 for these projects and associated
costs.
Approval of Cooperation and Reimbursement Agreement with the Orange County Sanitation District for
the Construction of Water Lines and Design of a Sanitary Sewer Lateral.
March 15, 2004
Page 2
DISCUSSION
The Prospect Avenue Water Line Replacement Project (CIP No. 6151) and the Water Line Replacement
Projects (CIP No. 6106) were scheduled for design and construction as part of the City's FY 2002/03
and 2003/04 Capital Improvement Program. The Prospect Avenue Project will replace an aged steel
water line in Prospect Avenue between Fairhaven Avenue and Santa Clara Avenue. The Water Line
Replacement Projects will replace undersized water mains in cul-de-sacs in Lear Lane, east of
Woodland Drive, Cameron Lane, east of Seclusion Drive, and Rosewood Circle, north of Parker Drive.
During discussions with OCSD concerning their upcoming projects within the City limits, it was
determined that a portion of their 7-41 Sewer Main Replacement Project would be constructed in the
same area as the Prospect Avenue Project which actually lies outside of the City. The OCSD 7-41
Project runs north of the 15 Freeway along Newport Avenue to EI Camino Real, north on EI Camino Real
to Main Street, east on Main Street to Prospect Avenue, and then north on Prospect Avenue to
Chapman Avenue.
The City and OCSD were concerned that the public could be impacted twice during the construction of
their respective projects. Due to the potential 18 month duration of the OCSD 7-41 Project, and the
potential construction delays that such a project could encounter, it became evident that scheduling the
construction of the Prospect Avenue Project to occur just before the construction of the sewer line in the
same area would not be a realistic goal. The construction of both projects, which will include trenching
for the water and sewer mains as well as many of the associated laterals to the property lines, closure of
traffic lanes, and replacement of the pavement to the satisfaction of the County of Orange will
substantially impact both the neighbors in the area as well as the motorists utilizing this street.
In order to minimize the impact to the public, the City and OCSD agreed to include the City's projects in
the OCSD Project bid package, and require the Contractor to build the City's water line on Prospect
Avenue just prior to constructing the sewer main in the same area. This would not only minimize the
impact to the public, but could also result in lower bid prices to both agencies since the costs of the final
pavement restoration work in this area could be shared by both projects.
OCSD included the City projects in their bid package that included the OCSD 7-41 Project as well as
two other OCSD sewer main replacement projects that are located within the City. The successful
contractor, ARB, Inc. of Lake Forest, has agreed to construct the City's two projects, and the portion
of the OCSD sewer project that lies within the limits of the Prospect Avenue Project, within the first
150 days of the contract.
The City Attorney has reviewed and approved the agreements as to form.
C;;J;1 &u
Tim D. Serlet
Director of Public Works/City Engineer
fL:-.- 0 \ ~
Brian A. Ragland
Water Services Manager
Attachment: Cooperation and Reimbursement Agreement
Location Exhibits
COOPERATION AND REIMBURSEMENT AGREEMENT
THIS COOPERATION AND REIMBURSEMENT AGREEMENT is made and entered
into to be effective , 2004, by and between:
ORANGE COUNTY SANITATION DISTRICT, a
political subdivision of the State of California,
hereinafter referred to as "District";
AND
CITY OF TUSTIN, a municipal corporation of the
State of California, hereinafter referred to as "City".
RECITALS
WHEREAS, in accordance with District's Strategic Plan, District is planning to
replace sewer lines and/or construct new sewer lines in District's Revenue Area 7,
which Revenue Area includes the area encompassed by City; and
WHEREAS, the proposed replacemenUconstruction includes the following:
Contract Number 7-36, which addresses a sewer line located in Redhill Avenue
between Mitchell Avenue and south of La Colina Drive; Contract Number 7-39, which
addresses sewer lines located in the Bryan-Holt-1ih Street Sub-Trunk in Holt Avenue,
between Newport Avenue and Warren Avenue, in the Hewes Avenue Sub-Trunk in 1ih
Street beginning at Esplanade Street to Hewes Avenue and in Hewes Avenue between
1ih Street and Fairhaven Avenue; and Contract Number 7-41, which addresses a
sewer line located in Prospect Avenue between the Interstate 5 Freeway and Chapman
Avenue ("District Projects"); and
WHEREAS, District has contracted design and construction support services with
AKM Consulting Engineers for the District Projects; and
WHEREAS, District intends to issue one construction contract to accomplish the
District Projects; and
WHEREAS, City would like to construct a sewer lateral connection within Irvine
Boulevard west of Holt Avenue and replace a water line in Prospect Avenue between
Santa Clara Avenue and Fairhaven Avenue in the unincorporated area of the County,
and replace water lines in one short cul-de-sac in the City and in two short cul-de-sacs
in the unincorporated area of the County ("City Projects") as part of the same
construction projects as the District Projects; and
WHEREAS, District is willing to include the City Projects and the District Projects
in one public works bid package to be issued by District; and
WHEREAS, District and City have agreed to cooperate with each other in
accomplishing their respective projects; and
WHEREAS, City has agreed to reimburse District for the entire construction cost
of the City Projects constructed and installed through District's public works bid
package; and
WHEREAS, City has agreed to reimburse District a design fee of $2,000 for the
cost of incorporating the sewer lateral design on Irvine Boulevard into the District's
design plans for the Bryan-Holt-1 ih Street Sub-Trunk in Holt Avenue.
NOW, THEREFORE, in consideration of the mutual promises set forth herein,
the Parties hereto agree as follows:
Section 1:
Recitals. The recitals set forth above are true and correct and are incorporated
into this Agreement.
Section 2:
Elements of Aqreement. District and City shall work cooperatively
together so that the District Projects and the City Projects can be combined to minimize
cost and impacts to the public.
The specific terms and conditions governing the
elements of this Agreement are set forth hereinafter.
Section 3:
A.
District's Specific Obliqations. District shall:
Assume responsibility for issuing a public works bid package and
letting and administering a construction contract incorporating the District Projects and
the City Projects.
B.
Include City-approved bid items for the City Projects in the District
Projects' schedule of prices.
Bid items are to be provided for each project under
separate headings.
C.
District Projects.
Projects.
Assume responsibility for construction inspection services for the
D.
Obtain all necessary permits for construction of the District
E.
Include City's general provisions and encroachment permit
provisions in the District's bid package.
F.
Include City's special provisions for the Asphalt Concrete overlay
and pavement striping requirements in the District's bid package for improvements on EI
Camino Real between Newport Avenue and Main Street and on Main Street between EI
Camino Real and Prospect Avenue.
G.
Submit plans and specifications to the City for review and signature
approval by the City Engineer, as to design and construction features of City Projects.
H.
Not accept improvements for City Projects under the contract until
the City Engineer approves the work, in writing.
I.
Furnish and deliver to City, if requested, all documents required in
connection with the construction and completion of City Projects.
J.
Include a provision in the specifications that requires the water line
sections of the City Projects be completed within 150 calendar days from the effective
start date of the project.
K.
Revise Item No.7 of the District Insurance Requirements to include
the "City of Tustin" as a named additional insured.
L.
Be responsible for all costs related to pavement replacement on
streets impacted by District projects pursuant to the City of Tustin encroachment permit.
Section 4:
A.
Citv's Specific Obliqations. City shall:
Contract with and pay a design consultant to provide design and
construction support services necessary for the City Projects.
B.
Reimburse District for the actual cost of construction for the City
Projects, as identified in the schedule of prices set forth in District's bid packet.
C.
Reimburse District for the actual cost of change orders that are
initiated by City or due to unforeseen conditions in the field related to City Projects, as
approved by City and District. Such approval shall not be unreasonably withheld.
D.
Reimburse
District for the
reasonable administration
and
management costs associated with the construction of the City Projects. The estimated
administration and management costs shall not exceed 5% of the total construction
costs of the City Projects.
Actual construction costs shall be determined upon
completion of construction of said improvements.
E.
Provide finished plans and specifications for the City Projects to
District for inclusion into the public works bid package prior to November 1, 2003, or as
soon thereafter as possible.
F.
Perform survey and shop drawing review for the City Projects.
G.
Assume responsibility of construction inspection services for the
City Projects, including but not limited to geotechnical compaction testing, trench backfill
testing, and asphalt compaction testing. City shall retain final authority to reject or
accept the contractor's work on the City Projects. City shall act reasonably in the
exercise of such authority.
H.
Obtain all necessary permits for the construction of the City
Projects.
I.
At all times during the progress of construction of any work, City
shall have access to the work thereof for the purpose of inspection and, should City
deem any remedial measures to be necessary, City shall notify District thereof.
Section 5:
Chanqe Orders and Desiqn Addenda. City shall be provided the
opportunity to review, approve and/or negotiate all design addenda and construction
change orders which pertain to City Projects.
Section 6:
Timinq of Reimbursement. City shall pay District the total amount
set forth in the accepted bid for the cost of the City Projects within forty-five (45) days of
District's award of the contract as provided for in Section 4.B. When the projects are
completed, an accounting shall be performed by District to determine the net additional
amount owed by City, if any, pursuant to this Agreement. Upon completion of the
accounting, an invoice shall be submitted to City for the remaining amount due, if any,
which amount shall be paid within forty-five (45) days of billing. If upon completion of
the accounting, monies are owing to City, District shall pay the amount owed to City
within forty-five (45) days of completion of the accounting.
Section 7:
Environmental Documentation.
District shall be responsible for
compliance with the California Environmental Quality Act ("CEQA") for all construction
activities associated with the District Projects and the City Projects described in this
Agreement. City shall be responsible for CEQA compliance on the City Projects.
Section 8:
Hold Harmless.
A.
District shall defend and hold City, its elected and appointed
officials, agents, consultants, and employees, free and harmless from any and all
claims, damages, or demands arising out of District's performance of its obligations
under this Agreement.
B.
City shall defend and hold District, its officers, agents, consultants,
and employees, free and harmless from any and all claims, damages, or demands
arising out of City's performance of its obligations under this Agreement.
Section 9:
Insurance.
District shall require the construction contractor to
maintain policies of workers' compensation insurance and general liability insurance for
personal injury and property damage, including motor vehicle operators and
products/completed operations liability and blanket contractual liability, during all times
of the contract in the amounts and terms consistent with District's established policies
for this type of construction agreement. Such policies shall name the City, its officers,
agents, and employees as additional insured thereon.
Section 10: Term. The term of this Agreement shall be in full force and effect
until the specified obligations of both Parties have been fulfilled or rescinded by both
Parties.
Section 11: Aqents. Any contractor, subcontractor, or consultant performing
work in connection with the District Projects shall be conclusively deemed to be an
agent of District.
Any contractor, subcontractor, or consultant performing work in
connection with the City Projects shall be conclusively deemed to be an agent of City.
Section 12: Notices. All notices shall be personally delivered or mailed to the
below listed addresses, or to such other addresses as may be designated by written
notice. These addresses shall be used for delivery of service of process.
To District:
Orange County Sanitation District
10844 Ellis Avenue
Post Office Box 8127
Fountain Valley, CA 92728-8127
Attention: Penny Kyle, Board Secretary
To City:
City of Tustin
300 Centennial Way
Tustin, CA 92780
Attention: Tim Serlet, Public Works Director
Section 13: Jurisdiction. In the event of a dispute regarding performance or
interpretation of this Agreement, the venue for any action to enforce or interpret this
Agreement shall lie in the Superior Court of California for Orange County. In the event
that suit is brought by either Party to enforce the terms and provisions of this Agreement
or to secure the performance hereof, the prevailing Party shall be entitled to reasonable
attorney's fees, costs, and necessary disbursements in addition to any other relief to
which he may be entitled.
Section 14: Force Majeure. Except for the payment of money, neither Party
shall be liable for any delays or other non-performance resulting from circumstances or
causes beyond its reasonable control, including without limitation, fire or other casualty,
Act of God, strike or labor dispute, war or other violence, acts of third parties, or any
law, order, or requirement of any governmental agency or authority.
Section 15: Governinq Law. This Agreement shall be governed by the laws of
the State of California in effect at the time of signing this Agreement.
Section 16:
Entire Aqreement.
This Agreement constitutes the entire
understanding and agreement between the Parties and supersedes all previous
negotiations between them pertaining to the subject matter thereof.
Section 17: Waiver. A waiver of a breach of the covenants, conditions, or
obligations under this Agreement by either Party shall not be construed as a waiver of
any succeeding breach of the same or other covenants, conditions, or obligations of this
Agreement.
Section 18: Modification. Alteration, change, or modification of this Agreement
shall be in the form of a written amendment, which shall be signed by each Party.
Section 19.
Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law, but if any
proyision of this Agreement shall be invalid under the applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without invalidating the reminder
of that provision, or the remaining provisions ofthis Agreement.
Section 20.
Agreement Execution Authorization. Each of the undersigned represents and
warrants that he or she is duly authorized to execute and deliver this Agreement and that such
execution is binding upon the entity for which he or she is executing this document.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on
the day and year first above written.
ORANGE COUNTY SANITATION DISTRICT
Dated:
By
Chair, Board of Directors
Dated:
By
Secretary, Board of Directors
CITY OF TUSTIN, a municipal corporation of
the State of California
Dated:
By
Mayor
ATTEST:
By
City Clerk
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PROJECT NAME: PROSPECT AVE WAlER MAIN REPLACEMENT BETWEEN SANTA CLARA AVE. AND FAIRHAVEN AVE. (ap NO. 6151)
CITY OF TUSTIN
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I PROJECT NAME: WATER MAIN REPLACEMENT (CIP NO. 6106) I
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