HomeMy WebLinkAbout08 APPROVE REIMBURSEMENT AGREEMENT OCSD CONTRACT NO. 7-37 (IN LIEU STREET WORK) WITH THE OCSD FOR THE CONSTRUCTION OF A PORTION OF THE GISLER RED HILL SYSTEM IMPROVEMENTS• Agenda Item 8
AGENDA REPORT Reviewed: —
City Manager
Finance Dire
c�ky
MEETING DATE: OCTOBER 3, 2017
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUBJECT: APPROVE REIMBURSEMENT AGREEMENT OCSD CONTRACT NO. 7-37 (IN
LIEU STREET WORK) WITH THE ORANGE COUNTY SANITATION DISTRICT
FOR THE CONSTRUCTION OF A PORTION OF THE GISLER RED HILL
SYSTEM IMPROVEMENTS
SUMMARY
Reimbursement Agreement OCSD Contract No. 7-37 (In Lieu Street Work) between the City of
Tustin and the Orange County Sanitation District (OCSD) dated September 27, 2017 establishes
terms and conditions under which OCSD would provide funds for the City's contractor to construct
certain final paving and miscellaneous street improvement elements of the OCSD Project ("Street
Work") that are associated with the City's Red Hill Avenue Widening and Median Improvements
project (CIP NO. 70197, 70226 & 70227) ("City Project").
RECOMMENDATION
It is recommended that the City Council approve Reimbursement Agreement OCSD Contract No.
7-37 (In Lieu Street Work) with OCSD and authorize the Mayor and City Clerk to execute the
agreement on behalf of the City.
FISCAL IMPACT
The City's construction of improvements related to the City Project was previously approved and
currently underway. This reimbursement agreement provides $260,000 to be deposited by OCSD
with the City to cover Gisler Red Hill System improvements by the City's contractor, All-American
Asphalt, within the Project Area.
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 B, Strategy #3 to
ensure public safety and protection of assets through continuous maintenance and improvement of
public facilities. Lastly the project also addresses Goal D, Strategy #2 by working collaboratively
with agencies to address issues of mutual interest and concern.
DISCUSSION AND BACKGROUND
Reimbursement Agreement OCSD Contract No. 7-37 (In Lieu Street Work) has been prepared to
establish terms and conditions in order to minimize traffic and construction impacts and in lieu of
OCSD performing certain street work that would be, shortly thereafter, replaced by similar City
Project street work, and to provide funds for the City's contractor to construct certain final paving
and miscellaneous street improvement elements of the OCSD Street Work that are within the City's
Approve Reimbursement Agreement No. 7-37 with OCSD
October 3, 2017
Page 2
Project Area. The combined work effort minimizes impacts to the environment, the public, and
surrounding community.
The City Attorney has reviewed and approved Reimbursement Agreement OCSD Contract No. 7-
37 (In Lieu Street Work) as to form. This agreement has also been approved by the OCSD Board
of Directors.
ouglas S. Stack, P.E.
Director of Public Works/City Engineer
Attachment 1: Reimbursement Agreement OCSD Contract No. 7-37
S:\City Council Items\2017 Council Items\10-03-2017\OCSD Gisler - Red Hill Reimbursement Agreement\Approval of Reimb Agmt #7-
37 w OCSD.docx
REIMBURSEMENT AGREEMENT
BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND
CITY OF TUSTIN FOR
THE GISLER RED HILL SYSTEM IMPROVEMENTS REACH B
(In Lieu Street Work)
OCSD PROJECT No. 7-37
THIS REIMBURSEMENT AGREEMENT ("Agreement") is made and entered into
on this 27th day of September, 2017 ("Effective Date") between the:
AND
ORANGE COUNTY SANITATION DISTRICT,
a county sanitation district ("OCSD");
CITY OF TUSTIN, a municipal corporation,
("City").
OCSD and City are sometimes hereinafter individually referred to as "Party" and
hereinafter collectively referred to as "Parties."
WHEREAS, OCSD is a duly organized county sanitation district existing pursuant to the
County Sanitation District Act, California Health and Safety Code section 4700 et seq.,
providing for the ownership, operation, and maintenance of wastewater collection, treatment, and
disposal facilities within Orange County, California; and
WHEREAS, the City is a municipal corporation duly organized and validly existing
under the laws of the State of California; and
WHEREAS, OCSD desires to build or have built a portion of its Gisler -Redhill System
Improvements Reach B project ("OCSD Project") located in Red Hill Avenue, in the City of
Tustin; and
WHEREAS, the City is constructing its Red Hill Avenue Widening and Median
Improvements project (CIP NO. 70197, 70226 & 70227) ("City Project") which is located along
a portion of Red Hill Avenue in the City of Tustin ("City's Project Area");
WHEREAS, a portion of the OCSD Project is within the City's Project Area;
WHEREAS, the City has already engaged the services of a contractor for the construction
of the City Project;
WHEREAS, the Parties desire to perform the OCSD Project and City Project in a manner
that minimizes the impacts to the environment, the public, and surrounding community;
4844-1181-2686.5 1
1010563.1
WHEREAS, the Parties, in order to minimize traffic and construction impacts and in lieu
of OCSD performing certain street work that would be, shortly thereafter, replaced by similar
City Project street work, intend by this Agreement to provide for the City's contractor to
construct certain final paving and miscellaneous street improvement elements of the OCSD
Project ("Street Work") that are within the City's Project Area as shown on the drawings
attached as Exhibit A, in exchange for OCSD's payment to the City of $260,000; and
WHEREAS, the Parties desire to enter into this Agreement to establish the duties and
obligations of each respective Party for the City's performance of the Street Work.
NOW THEREFORE, based on the recitals and the mutual covenants and promises
herein, the City and OCSD agree as follows:
1. Recitals. The recitals above are deemed true and correct, and are hereby
incorporated in this Section as though fully set forth herein.
2. Elements of Agreement. OCSD and the City shall work cooperatively together so
the OCSD Project and the City Project can be constructed in a manner that minimizes the costs
and impacts to the public. The specific terms and conditions governing the elements of this
Agreement are set forth hereinafter.
3. City's Specific Obligations Relating; to OCSD Project.
A. Upon OCSD's written authorization, the City shall have its contractor
perform the Street Work in conformance with the plans and specifications provided pursuant to
Section 4.A., below.
B. City shall be responsible for administering the construction contract for
the City Project, including the construction of the Street Work.
C. City shall be responsible for compliance with the California
Environmental Quality Act ("CEQA") (Pub. Resources Code, Section 21000 et seq.) for all
activities associated with City Project and City shall be the Lead Agency for purposes of CEQA
for the City Project.
D. City shall require from its construction contractor a Faithful Performance
Bond, a Labor and Materials Payment Bond, and a one-year warranty for the Street Work. Such
bonds and warranty shall comply with the City's General Provisions Section 2-4 "Contract
Bonds" (see attached Exhibit B).
E. City shall be responsible for any proposed change orders to the
construction contract that affect the Street Work.
4. OCSD's Specific Obligations Relating to the Street Work.
A. OCSD shall provide its existing Plans and Specifications for Gisler
Redhill System Improvements, Reach B, Contract No. 7-37 highlighting the Street Work to be
constructed by City, including: final paving and striping, curb, gutter and sidewalk repairs,
4844-1181-2686.5 2
1010563.1
concrete/turf block driveway repairs, and raising all sewer manholes to finished grade consistent
with OCSD's standards.
B. OCSD has deleted the Street Work from the contract OCSD has with its
contractor for the OCSD Project.
C. Within 30 days after execution of this Agreement, OCSD shall pay the
City $260,000 to construct the Street Work. OSCD shall not be responsible for any additional
costs of the Street Work, including change orders.
D. OCSD shall not provide inspection services, except for raising OCSD
manholes to grade, and will otherwise rely on the City to provide all administrative and technical
support for the performance of the Street Work at no additional cost to OCSD.
5.
Indemnification.
A. City shall indemnify, defend and hold OCSD, its elected and appointed
officials, its officers, agents, employees, and consultants harmless from any and all actions, suits,
claims, liability or expense for death, injury, loss, or damage to persons or property (collectively
"Claims") arising out of any act or omission by City, its officers, agents, employees or
consultants, with respect to the construction or undertaking of the Street Work, except in those
instances where such Claims are solely caused by any act, omission, or negligence of OCSD, its
officers, agents, employees or consultants.
B. The City shall, in any contract with a contractor or consultant working on
the Street Work and/or City Project, require that contractor or consultant to indemnify, defend,
and hold harmless both the City and OCSD in connection with any Claims arising out of or
relating to the construction, maintenance or operation of the OCSD Project and/or City Project
and obtain insurance consistent with Section 6. At least 10 days prior to the commencement of
construction of the Street Work, the City shall provide OCSD with proof of the contractor's
indemnity and insurance, including providing endorsements or policies evidencing compliance
with the requirements of Section 6.
6. Insurance. The City shall require its contractor to maintain insurance policies in
compliance with the City's General Provisions Section 7-3 "Liability Insurance" (see Exhibit C)
during all times of the construction projects. OCSD shall be named as an additional insured on
each liability insurance policy. The City shall not allow its contractor or subcontractor(s) to
commence the work covered by this Agreement until such insurance is obtained in accordance
with the requirements of this Section.
7. Term. This Agreement shall commence on the Effective Date, and be in full force
and effect until the specified obligations of both Parties have been fulfilled or the Agreement is
terminated.
8. Notices. All notices or other communications required or permitted hereunder
shall be in writing and shall be personally delivered or sent by overnight courier or U.S. snail or
by electronic transmission, and shall be deemed received upon the earlier of. (i) the date of
delivery to the address of the person to receive such notice if delivered personally or by
4844-1181-2686.5 3
1010563.1
messenger or overnight courier; (ii) three business days after the date of posting by the United
States Post Office if by snail; or (iii) when sent if given by electronic transmission. Any notice,
request, demand, direction, or other communication sent by electronic transmission must be
confirmed within 48 hours by letter mailed or delivered. Notices or other communications shall
be addressed as follows:
To OCSD:
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708-7018
Attention: Clerk of the Board
Facsimile: (714) 962-0356
To CITY:
City of Tustin
300 Centennial Way
Tustin, CA 92780
Attention: Director of Public Works/City Engineer
Facsimile: (714) 734-8991
9. 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.
10, No Third Party Beneficiaries. This Agreement is entered into by and for OCSD
and the City, and nothing herein is intended to establish rights or interests in individuals or
entities not a party hereto.
11. 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.
12. Governing. This Agreement shall be governed by the laws of the State of
California.
13. Entire Agreement. This Agreement constitutes the entire understanding and
agreement between the Parties and supersedes all previous negotiations and agreements between
the Parties pertaining to the City's construction of, and OCSD's reimbursement to the City for,
the OCSD Project described in this Agreement.
14. 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.
4844-1181-2686.5 4
1010563.1
15. Modification. Any alteration, change, or modification of this Agreement shall be
in the form of a written amendment, which shall be signed by both Parties.
16. Severability. If any term or portion of this Agreement is held to be invalid, illegal,
or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this
Agreement shall continue in full force and effect.
17. Agreement Execution and Authorization. Each of the undersigned represents and
warrants that they are duly authorized to execute and deliver this Agreement and that such
execution is binding upon the entity on whose behalf they are executing this Agreement. This
Agreement may be executed in counterparts.
The Parties are signing this Agreement as of the Effective Date.
ORANGE COUNTY SANITATION
DISTRICT
In
APPROVED AS TO FORM:
SPECIAL COUNSEL
Claire Hervey Collins
Lewis Brisbois Bisgaard & Smith, LLP
James D. Herberg, General Manager
CITY OF TUSTIN
Dr. Allan Bernstein, Mayor
ATTEST:
Erica Rabe, City Clerk
4844-1181-2686.5
1010563.1
EXHIBIT A
Plans
4844-1181-2686.5
1010563.1
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EXHIBIT B
2-4 CC?N____ TRACT g_ C}, N
Both the Faithful Performance Bond and the Labor and Materials Payment Bond shall each
be for not less than one hundred percent (1 oo%) of the total contract amount. Bonds shall be
Of the form attached to Section C and secured from a surety company duly authorized to
issue such bonds in the State of California and shall be subject to the approval and
acceptance of the City Council and City Attorney. The Labor and Materials Payment Bond
and the Faithful Performance Bond shall remain in force until one (1) year after the date of
recordation of the Notice of Completion.
Additionally, the Contractor shall concurrently submit, with the bonds, a certified copy of the
most recent Certificate of Authority issued to the bonding company by the California
Insurance Commissioner,
4844-1181-2686.5 7
1010563.1
EXHIBIT C
Insurance Requirements
4844-1181-2686.5
1010563.1