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HomeMy WebLinkAbout18 AG REIMBURSE IRWD 01-03-05 AGENDA REPORT Agenda Item 18 Reviewed: City Manager ~ Finance Director MEETING DATE: JANUARY 3, 2005 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION SUBJECT: APPROVAL OF REIMBURSEMENT AGREEMENT BETWEEN IRVINE RANCH WATER DISTRICT AND CITY OF TUSTIN FOR DOMESTIC WATER, SEWER AND RECLAIMED WATER PIPELINES FOR THE PHASE 1 TUSTIN LEGACY BACKBONE INFRASTRUCTURE PROJECT (VALENCIA NORTH LOOP ROAD, ARMSTRONG AVENUE, LANDSDOWNE ROAD, SEVERYNS ROAD, AND WEST CONNECTOR ROAD) (CIP NO. 7139) SUMMARY The proposed Agreement between the City of Tustin and the Irvine Ranch Water District (IRWD) outlines each agency's responsibilities for the design and construction of IRWD facilities as part of the Phase 1 Tustin Legacy Backbone Infrastructure Project (Valencia North Loop Road, Armstrong Avenue, Landsdowne Road, Severyns Road, and West Connector Road) (CIP No. 7139). RECOMMENDATION' It is recommended that the City Council approve the Reimbursement Agreement between the Irvine Ranch Water District and the City of Tustin for Domestic Water, Sewer and Reclaimed Water Pipelines in Valencia North Loop Road and Armstrong Avenue as part of the Phase 1 Tustin Legacy Backbone Infrastructure Project (Valencia Avenue, Armstrong Avenue, Landsdowne Road, Severyns Road, and West Connector Road) (CIP No. 7139) and authorize the Mayor and City Clerk to execute the document on behalf of the City. FISCAL IMPACT The Agreement requires IRWD to reimburse the City for the actual costs of design, construction, permits, bonds, and legal fees incurred by the City for the design and construction of the IRWD facilities for the subject project. Additionally, IRWD is to pay an administration fee equal to 4% of the actual cost of construction of the IRWD facilities, which shall be deemed to cover all costs of project administration, inspection, surveying, compaction testing, geotechnical services and engineering. The estimated cost to construct the IRWD facilities is $4,782,000. The design cost is estimated at $410,000 and the 4% administration fee is $191,200 for a total estimated cost of $5,383,280. All costs are subject to a final accounting upon completion of the project. Approval of Reimbursement Agreement between Irvine Ranch Water District and City of Tustin for Domestic Water, Sewer and Reclaimed Water Pipelines for the Phase 1 Tustin Legacy Backbone Infrastructure Project (Valencia North Loop Road, Armstrong Avenue, Landsdowne Road, Severyns Road, and West Connector Road) (CIP No. 7139) January 3, 2005 Page 2 BACKGROUND At their meeting of September 20, 2004, the City Council approved plans and specifications for the Phase 1 Tustin Legacy Backbone Infrastructure Project (Valencia North Loop Road, Armstrong Avenue, Landsdowne Road, Severyns Road, and West Connector Road) (CIP No. 7139) and authorized advertisement for bids. At their meeting of November 1, 2004 the City Council approved a Consultant Services Agreement with Washington Group International, Inc. to provide construction management services for the subject project. Construction Bids were opened by the City Clerk on November 16, 2004. Two bids were received and staff is currently reviewing them. It is anticipated that a recommendation for award of bid will be made at the January 17, 2005 or February 7, 2005, City Council meeting. The proposed Project will construct street, traffic signal, parkway, sidewalk, storm drain, water, reclaimed water, sewer, and dry utility backbone infrastructure improvements on Valencia North Loop Road from Red Hill Avenue to West Connector Road; on West Connector Road from Valencia North Loop Road to Edinger Avenue; and on Landsdowne Road from Valencia North Loop Road to the end of the cul-de-sac. Construction on Severyns Road will be limited to the intersection improvements at Valencia North Loop Road, with the extension of Severyns Road to be constructed by Lennar Homes at a later date. The Project will also include construction of the street, storm drain, water, sewer and reclaimed water line on Armstrong Avenue between Valencia North Lop Road and Warner Avenue, with only the sewer and water improvements being constructed between Warner Avenue and Barranca Parkway. Backbone dry utilities, including gas, electric, telephone and cable, will be constructed underground in conjunction with all street improvements. DISCUSSION Approval of the subject Agreement is required in order for the City to be reimbursed by IRWD for installation of their facilities in conjunction with the Phase 1 Tustin Legacy Backbone Infrastructure Project (Valencia North Loop Road, Armstrong Avenue, Landsdowne Road, Severyns Road, and West Connector Road) (CIP No. 7139). The Agreement is now ready for City Council approval. The City Attorney has reviewed the Agreement and approved it as to form. Tim D. Serlet Director of Public Works/City Engineer Dana R. Kasdan Engineering Services Manager TDS: DRK: cog: IRWD Reimb Agmt Phase 1.doc Attachments: Agreement Location Map FileNo. REIMBURSEMENT AGREEMENT BETWEEN IRVINE RANCH WATER DISTRICT AND CITY OF TUSTIN FOR DOMESTIC WATER, SEWER AND RECLAIMED WATER PIPELINES IN VALENCIA NOTH LOOP ROAD AND ARMSTRONG AVENUE WITHIN TUSTIN LEGACY - PHASE 1 This Agreement is made and entered into as of this - day of 2005, by and between IRVINE RANCH WATER DISTRICT, a California water district formed and existing pursuant to the California Water District Law of the State of California, hereinafter referred to as "DISTRICT," and CITY OF TUSTIN, hereinafter referred to as "CITY." JY!INEß.ß.EIH: WHEREAS, CITY proposes to construct street and utility improvements within Tustin Legacy, Phase I, Valencia North Loop Road between Red Hill and West Connector, Armstrong between Barranca Parkway and Valencia, Landedowne north of Valencia, and West Connector north of Valencia (the "Project"), within the jurisdictional boundaries of DISTRICT and the City of Tustin; and WHEREAS, prior to or in conjunction with CITY's construction of the Project, IRWD desires to construct, within or adjacent to the street improvements that comprise the Project, the following capital facilities and appurtenances thereto: approximately 15,000 lineal feet (LF) of domestic water pipeline, 10,000 LF of sewer pipeline and 14,000 LF of domestic water pipeline, as depicted on Exhibit "A" attached hereto incorporated by reference herein (hereinafter referred to as the "IRWD FACILITIES"); and WHEREAS, the parties have determined that it would be more expedient for CITY to construct the IR WD FACILITIES rather than for DISTRICT to do so; and 1 - f:/bort!wrdlengrllcimlinvd-tustin-agmtdroftI2- 7-04 2.d", WHEREAS, DISTRICT is amenable to the design and construction of the IRWD FACILITIES by CITY, at the cost of CITY, which cost is to be reimbursed by DISTRICT; and WHEREAS, except as otherwise provided herein, upon the completion of the IRWD FACILITIES, the IRWD FACILITIES shall become the property of DISTRICT in accordance with the terms and conditions hereinafter set forth. NOW, THEREFORE, the parties hereto, in consideration of the mutual promises and covenants hereinafter set forth, do agree as follows: SECTION 1. IRWD FACILITIES. In conjunction with the Project, CITY agrees to initiate and diligently pursue to completion the design and construction of the IRWD FACILITIES. SECTION 2. PLANS. CITY agrees that the IRWD FACILITIES shall be completed pursuant to approved project plans and specifications (the "Plans and Specifications") which shall be approved by DISTRICT and used in awarding the construction contract. Prior to commencement of preparation of the Plans and Specifications, CITY shall submit its design engineer's proposal for the design of the IRWD FACILITIES to DISTRICT. DISTRICT will have a period offive (5) calendar days from its receipt of such design proposal to review and either indicate its approval or request changes. CITY shall cause its design engineer to review and respond to any requested changes. The Plans and Specifications shall be deemed to incorporate the applicable portions of DISTRICT's latest edition of"ConstructioJJ. Manual for the Construction of Water, Sewer, and Reclaimed Water Facilities" (the "Construction Manual"). The IRWD FACILITIES shall be contracted by CITY together with non-reimbursable work to be completed by CITY within the Project pursuant to plans prepared by CITY's design engineer. SECTION 3. BIDDING AND AWARD. The parties agree that the construction of the IRWD FACILITIES shall be included in CITY's contract(s) awarded for the Project and that the IRWD FACILITIES shall be bid as a separate item or items that can be deleted. During the bidding process, CITY shall deliver to IRWD one (1) complete set of the bid documents that include the IRWD FACILITIES, including all related addenda concurrently with the distribution thereofto prospective bidders. Upon opening of bids by CITY, CITY will submit the bids or a spreadsheet summary of the bids to DISTRICT. DISTRICT will have a period often (10) calendar days from its receipt of the bid results forreview and approval of the IRWD FACILITIES bid item(s) submitted by the bidder identified to DISTRICT by CITY as CITY's 2- f:/bort!wrdlengrllcimlinvd-tustin-agmtdroftI2-7-04 2.doc proposed successful bidder. CITY agrees that bids received for the construction of the IRWD FACILITIES bid item(s) shall be subject to the approval of DISTRICT prior to award of the Project construction contract(s) that include the IRWD FACILITIES; and further agrees that in the event DISTRICT does not approve such bids, either party may terminate this Agreement upon twenty-four (24) hours' prior written notice, in which event CITY shall have no further obligation to construct the IRWD FACILITIES, and DISTRICT may elect to install the IRWD FACILITIES with its own contractor. If DISTRICT approves of the IRWD FACILITIES bid item(s) of CITY's successful bidder, CITY agrees to cause the IRWD FACILITIES to be constructed as part of the contract awarded to such bidder. The total estimated construction cost for the IR WD FACILITIES is $4,700,000, provided, however, the amount to be reimbursed by DISTRICT shall be based on the actual costs of construction. Upon award of the construction contract, CITY shall provide DISTRICT with one (1) original copy of the fully executed contract documents and one (I) copy of the bid package relating to the IRWD FACILITIES received from the successful bidder. SECTION 4. DESIGN REVISIONS AND CHANGE ORDERS. CITY agrees that if, during design or construction, CITY requests or initiates any revision to the Plans and Specifications that would increase the cost of the IRWD FACILITIES, such additional costs shall be borne by CITY, and shall not be reimbursed by DISTRICT, except for such revision(s) and cost(s) that are determined necessary to construct IRWD FACILITIES in accordance with the Construction Manual and could not reasonably have been foreseen at the time bids were received. The cost of any such necessary and unforeseeable revisions, and the cost of any revisions requested or initiated by DISTRICT shall be reimbursed by DISTRICT as provided herein. CITY shall promptly furnish DISTRICT with copies of any proposed change orders to the Project contract within five (5) working days of initiation of changed conditions to such contract, which change orders shall be subject to DISTRICT approval if and to the extent any of the IRWD FACILITIES are affected thereby. DISTRICT will review and respond to proposed change orders affecting the IRWD FACILITIES within five (5) working days of receipt by DISTRICT. SECTION 5. REIMBURSEMENT. DISTRICT agrees to reimburse CITY for the following costs (collectively, the "Costs"): (1) the actual costs of design, construction, permits, bonds, and legal fees (excluding the costs of preparation of this Agreement) incurred by CITY for the design and construction of the IRWD FACILITIES, plus (2) an administration fee which shall be equal to four percent (4%) of the actual cost of construction (costs paid directly to 3 - f:!bort!wn!lengr/kimlinvd-tustin-agmtdroft12-7-04 2.doc CITY's contractor for construction, only, excluding any cost for design, surveying, geotechnical or other work) of the IRWD FACILITIES and which shall be deemed to cover all costs of project administration, including, but not limited to, accounting, inspection, surveying, compaction testing, geotechnical services and engineering. CITY shall keep a separate accounting of all Costs incurred by CITY in relation to the IRWD FACILITIES. Within sixty (60) days of DISTRICT's acceptance of the IRWD FACILITIES as provided in Section 8, a final accounting of the Costs shall be made by CITY and submitted to DISTRICT along with an invoice for the Costs and any supporting documentation necessary to show the amounts which represent Costs ofIRWD FACILITIES. Amounts paid pursuant to progress payment invoices shall be subject to adjustment in the final accounting. Within thirty (30) days of said final accounting, DISTRICT agrees to pay to CITY the total amount of the Costs. SECTION 6. LAWS. ORDINANCES. RULES AND REGULATIONS. CITY shall require in its contract for the construction of the IRWD FACILITIES that its contractor be fully informed of and comply with all laws, ordinances, rules and regulations, including, but not limited to, all applicable requirements of the California Labor Code, prevailing wage laws, the Construction Manual, and the Rules and Regulations of DISTRICT, in connection with the construction of the IRWD FACILITIES. SECTION 7. INSPECTION. DISTRICT shall have sole and absolute discretion as to all aspects of design and construction of the IRWD FACILITIES, and DISTRICT shalI be entitled to inspect the construction ofIRWD FACILITIES as it deems necessary to assure compliance with the Plans and Specifications, including shop drawing review and material inspection thereof. DISTRICT shall have access to all phases of the Project work to be performed by CITY for the purpose of such inspection; provided, however, all questions regarding the work being performed will be directed to CITY's resident engineer. DISTRICT will promptly notify CITY of any portion of the work on the IRWD FACILITIES which appears not to conform to the Plans and Specifications. The determination of DISTRICT as to conformity of the IRWD FACILITIES with the Plans and Specifications shall be made in DISTRICT's sole and absolute discretion. DISTRICT agrees not to unreasonably withhold its approval as to such conformity of the IR WD FACILITIES with the Plans and Specifications. CITY shall require its contractor to construct the IRWD FACILITIES so that the IRWD FACILITIES conform to the Plans and Specifications. CITY agrees to assume full responsibility for certifying or obtaining certification of the compaction of backfill material over the IRWD FACILITIES. 4- f:/bort!wrd/engrlldmlinvd-tmtin-agmtdrnft12-7-042.doc SECTION 8. ACCEPTANCE. DISTRICT agrees to accept the IRWD FACILITIES when the IRWD FACILITIES have been completed by CITY in accordance with all requirements of the Plans and Specifications, including any change orders approved by DISTRICT as provided in Section 3 hereof. At the time of completion and acceptance of the IRWD FACILITIES, CITY agrees to furnish DISTRICT with one (1) copy of the contractor's redlined set ofblueline "record" drawings (showing all revisions, manufacturer and type of valves, pipe and fittings as required by DISTRICT) and one (1) copy of the compaction reports and certificate, survey notes and cut sheets. SECTION 9. OWNERSHIP. It is mutually agreed between the parties hereto that notwithstanding the fact that CITY shall accomplish the construction of the IRWD FACILITIES subject to reimbursement, the IRWD FACILITIES to be completed hereunder, together with the necessary franchises, licenses, easements, rights-of-way, and other privileges, shall at all times be subject to the applicable rates, rules and regulations of DISTRICT, as modified or amended from time to time. CITY hereby disclaims any interest in the IRWD FACILITIES and does hereby transfer and assign to DISTRICT any and all right, title, and interest it may have in the IRWD FACILITIES. DISTRICT shall own, operate and maintain the IRWD FACILITIES following acceptance thereof. SECTION 10. GUARANTEES. CITY will, pursuant to the requirement(s) of the Plans and Specifications, cause its contractor(s) for the IRWD FACILITIES to guarantee the IRWD FACILITIES against defects in workmanship and materials for a period of one (1) year ftom the date of acceptance by CITY, which acceptance shall be given only after acceptance by DISTRICT as provided in Section 8. It is further agreed that CITY shall cause the IRWD FACILITIES to be brought or restored to full compliance with the requirements of the Plans and Specifications, including any test requirements, for any portions of the IRWD FACILITIES which during said one (1) year period are found not to be in conformance with the provisions of the Plans and Specifications. This guarantee is in addition to any and all other warranties, express or implied, ftom CITY's contractors or material manufacturers, with respect to the IRWD FACILITIES. The guarantee and obligations under this section shall in no way be relieved by DISTRICT's inspection and/or acceptance of the IRWD FACILITIES- This section sets forth the entire guarantee and warranty of CITY with respect to the IRWD FACILITIES. The express or implied warranties of other persons with respect to IR WD FACILITIES shall in no way be limited by the guarantee and warranty of CITY contained in this section. If requested 5 - f:!bort!wrdlengr/kimlinvd-tustin-agmtdroftI2-7-04 2.doc by DISTRICT, CITY agrees to assign to DISTRICT the contractor's guarantee and/or any other guarantees or warranties relating to the IRWD FACILITIES. SECTION 11. INDEMNIFICATION. CITY shall indemnify, defend and hold DISTRICT, its officers, agents, employees, and engineers harmless from any expense, liability or claim for death, injury, loss, damage or expense to persons or property which may arise or is claimed to have arisen during construction of the IRWD FACILITIES as a result of any work or action performed by CITY or on behalf of CITY, save and except to the extent such expense, liability or claim is proximately caused in whole or in part by any act, omission, or negligence of DISTRICT, its officers, agents, employees or engineers or by any act or omission for which DISTRICT, its officers, agents, employees or engineers are liable without fault. DISTRICT shall indemnify, defend and hold CITY, its officers, agents, and employees, harmless from any expense, liability or claim for death, injury, loss, damage or expense to persons or property which may arise or is claimed to have arisen either (i) as a result of any acts performed by DISTRICT, its officers, agents, or employees, with respect to the IRWD FACILITIES construction; or (ii) following DISTRICT acceptance of the IRWD FACILITIES, with respect to maintenance and operation of the IRWD FACILITIES, save and except to the extent such expense, liability or claim is proximately caused in whole or in part by any negligence of CITY, its officers, agents, employees or engineers, or by any act or omission for which CITY, its officers, agents, employees or engineers are liable without fault. SECTION 12. INSURANCE AND BONDING. CITY shall cause its contractor(s) to provide performance and payment bonds for the construction of the Project including the IRWD FACILITIES and to obtain insurance coverage sufficiently broad to insure the matters set forth in this Agreement and to include DISTRICT, its officers, agents, employees and engineers, as additional insureds on all insurance policies that CITY requires its contractor(s) to provide. As evidence of such insurance coverage, CITY shall, prior to commencement of construction of the IRWD FACILITIES, provide DISTRICT with certificates of insurance and insurance endorsements from CITY's contractor(s) in a form acceptable to DISTRICT. SECTION 13. TERMINATION. DISTRICT shall have the right to terminate this Agreement at any time, subject to the provisions of this section, by providing five (5) business days' prior written notice to CITY, except as noted in Section 3. If at the request or direction of a party other than CITY, the construction of the IRWD FACILITIES is not accomplished or 6- f:/bort!wrdleng,/kimlinvd-tustin-agmtdroftI2-7-04 2.doc completed, DISTRICT shall remain obligated for the actual amount of the Costs incurred by CITY to the date of termination. If CITY's Project is canceled or modified so as to eliminate the necessity of the construction of the IRWD FACILITIES, CITY shall have the right to terminate this Agreement and thereby terminate its obligation to construct the IRWD FACILITIES, by providing five (5) business days' prior written notice to DISTRICT. In such case, DISTRICT will not be obligated for any design or any other Costs incurred by CITY. IfIRWD elects to construct the IRWD FACILITIES, DISTRICT may, but shall not be obligated to, acquire the design or other work from CITY by separate agreement. SECTION 14. NOTICE. Any notice or other written instrument required or permitted by this Agreement to be given to either party shall be deemed received when personally served or twenty-four (24) hours after being deposited in the U.S. Mail, postage prepaid, registered or certified and addressed as follows: DISTRICT: Irvine Ranch Water District 15600 Sand Canyon Avenue P.O. Box 57000 Irvine, CA 92619-7000 Attn: General Manager CITY: City of Tustin 300 Centennial Way Tustin, CA 92780 Attn: City Manager SECTION 15. SUCCESSORS AND ASSIGNS: INTEGRATION: AMENDMENT. This Agreement shall be binding upon and inure to the benefit of the successor and assigns of CITY and DISTRICT. This Agreement constitutes the entire Agreement between CITY and DISTRICT and supersedes all prior understandings and agreements between the parties with respect to the subjects hereof. This Agreement may be modified only in writing signed by both parties hereto. SECTION 16. LEGAL FEES. In the event of any dec1aratoryor other legal or equitable action instituted between CITY and DISTRICT in connection with this Agreement, the 7- [lbortlwcdleng,lIcimIinvd-tustin-ogmtdnrl\12-7-04 2.doc prevailing party shall be entitled to recover ITom the losing PartY all of its costs and expenses, including court costs and reasonable attorneys' fees. SECTION 17. DEEMED APPROVAL. Any approval required to be given by either party pursuant to this Agreement shall be deemed given if no response to the party's request for such approval is received by the requesting party within fifteen (15) days following the written request for such approval. SECTION 18. SEVERABILITY. If any term, provision, covenant or condition of this Agreement is held to be invalid, void or other unenforceable, to any extent, by any court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby, and each term provision, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law. SECTION 19. APPLICABLE LAW. This Agreement shall be construed and enforced in accordance with the laws of the State of California. SECTION 20. WAIVER. The waiver of any provision of this Agreement by either party shall not be deemed to be a waiver of any other provision or of any preceding or subsequent breach hereunder. SECTION 21. COMPLETED OBLIGATIONS. The parties acknowledge that the bidding of the Project and certain other actions required by this Agreement to occur prior to bidding have already been completed prior to the execution hereof, and they acknowledge satisfaction of the requirements, or waive satisfaction of the requirements, set forth in this Agreement relating to the completed actions 8 - f:/bortlw,dlengrlkimlinvd-tustin-agmtdroftI2- 7.04 2.doc IN WITNESS WHEREOF, the parties to the Agreement have executed this Agreement on the date herein above written. IRVINE RANCH WATER DISTRICT By Paul D. Jones II, General Manager Dated ATTEST: By Secretary! Assistant Secretary Dated APPROVED AS TO FORM: By Legal Counsel, IRWD Dated CITY By Title: Dated ATTEST: By Title: Dated APPROVED AS TO FORM: By ~í.~/ Attorney fort!lh D Dated J~/ I (plOf- 9. f:/bortlwrdlengrllcil1Jhnvd-tu"in-agmtdrnftI2-7-04 2.doc EXHIBIT "A" -~ ' .\ A-1 I ~ - = Q 1\1 . ! IL 5) : ¡j !~ - ø~! ¡ : .,! ;; ; ~II /1 ;! ii! ~! I~~! 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"',' ---'I / ì- Ii ' ,- [ _I, ' 'I, -,; ..-:-C ~ ,_,~i ..-" '¡¡ 'I:, !:,~ " , -~---lL. ' '~--:---~------....... :~i" . L,- . , II, ' , I'¡~ :1;' 'Ill ~ ".,,';1 ~ ':' "',I:':! : II .. /! ì : '1 "',~I ~ I" :111 1á ì, !, i Ii! I æ! i I: ---§ EI' II ~ ~II i "~ " "I I: ': Æ~ ,1, '" ,I t - , : t.~ :;', 1/., -------"'-"~8 " ., - ---..1:'------:- !~! ,,' '--==----- --.. , , .i!i ' ~""-----¡¡¡¡:¡¡;.~ I , ~~ ¡ ..- ' A-4 '" ~ .'-.. ¡ .. . .Ii;;; .... JII ~ ¡.. I .. &I - U CD 81: - CD fft &I .c IL :t> I U1 MCAS Tustin Redevelopement Phase 1 Construction of Domestic Water, Sewer and Reclaimed Water ITEM I PROJECT I DESIGN I CONSTRUCTION ADMIN. FEE (4%) TOTAL . D()l\!!E~:!,~Ç.F~TE~_- - -- I4402_- -~o,ooo_-- 1,650,00O$66,Q()o..__--- $1,8~~QQQ._- SEWER 24402 180,000 2,382,000 $95,280 $2,657,280. 1..RE~r:-~~fXP~~~~_=:~}4404 =-~ ~~~~~---:::-- 4~;~~~ggö~--~=-~ ~~~:~~~~----~-= ;~~~:~~~ ~I ~ ~ () :::! z Ë s: ~ ~ ~ < ~ C II: a.. 8 ..J ~ ~ < ~ ~ ~ ~ ~ t) w ð II: D..