HomeMy WebLinkAbout13 APPROVE UTILITY AGREEMENT WITH ORANGE COUNTY TRANSPORTATION AUTHORITYDocusign Envelope ID: E3598871-OCDO-4005-BA09-6603E5FCB82A
AGENDA REPORT
L8't
MEETING DATE
TO:
FROM:
SUBJECT:
SUMMARY:
DECEMBER 3, 2024
ALDO E. SCHINDLER, CITY MANAGER
Agenda Item 3,�
Reviewed: a`V�
City Manager
Finance Director J
MICHAEL GRISSO, DIRECTOR OF PUBLIC WORKS
APPROVE UTILITY AGREEMENT WITH ORANGE COUNTY
TRANSPORTATION AUTHORITY
Staff is requesting that the City Council approve Utility Agreement No. COT-56 with the
Orange County Transportation Authority for the El Camino Real Water Main Relocation
Project, Capital Improvement Program Project No. 60178.
RECOMMENDATION:
It is recommended that the City Council:
1. Approve Utility Agreement No. COT-56 between the Orange County
Transportation Authority and the City of Tustin for the El Camino Real Water
Main Relocation Project; and
2. Authorize the City Manager or his designee, the Director of Public Works, and
City Clerk to execute the agreement on behalf of the City.
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The Orange County Transportation Authority will fully reimburse the final design and
construction costs, minus an accrued depreciation credit of $2,650. A total of $550,000 has
been budgeted in the Fiscal Year 2024-2025 Capital Improvement Program for the design
and construction phase. The estimated total construction cost is $665,326. Additional
funds will be requested in the mid -year budget review process.
CORRELATION TO THE STRATEGIC PLAN:
The project contributes to the fulfillment of the City's Strategic Plan Goal B: Public Safety
and Protection of Assets, specifically Strategy #5, to complete asset improvements to meet
the needs of a growing population. Secondly, Goal D: Strong Community and Regional
Relationships, specifically Strategy #2, by working collaboratively with outside agencies to
address issues of mutual interest and concern.
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City Council Agenda Report
Utility Agreement with OCTA
December 3, 2024
Page 2
BACKGROUND AND DISCUSSION:
The Orange County Transportation Authority (OCTA) has partnered with the California
Department of Transportation (Caltrans) in a project to widen Interstate 5 (1-5) from Yale
Avenue to State Route 55 (SR-55), including improvements to the on- and off -ramps.
Pursuant to Cooperative Agreement No. C-0-2317 between OCTA and Caltrans, OCTA is
the lead agency for right-of-way acquisition and utility relocation.
The project includes reconstruction of a retaining wall along the 1-5 northbound off -ramp at
Red Hill Avenue, necessitating relocation of approximately 500 feet of a City -owned water
main located in the El Camino Real street right-of-way. The City has claimed prior rights
and assumes zero percent (0%) liability for the relocation costs. Under Utility Agreement
No. COT-56, the City agrees to design and construct the necessary utility relocation work
with its own forces or by contract and OCTA agrees to reimburse the City for all costs minus
any applicable credits. Pursuant to Section 705 of the California Streets and Highways
Code, credits are due to OCTA for the accrued depreciation of the replaced facilities and
for the salvage value of materials or parts. Accrued depreciation credit has been calculated
to be $2,650, due to age, material type and salvage value of zero.
Since the Project requires cooperation from each agency, the agencies must enter into the
attached Utility Agreement to formalize the roles and responsibilities for the implementation
of the required improvements. The City Attorney has approved the agreement as to form.
w-/1 ..---C) C----J
Michael Grisso
Director of Public Works
Attachment: Utility Agreement No. COT-56
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DISTRICT
COUNTY
ROUTE
POST MILE
Project ID
12
Orange
1-5
25.8 / 30.3
1220000035
E.A. 12-OK672
FEDERAL AID NUMBER
OWNER'S PLAN NUMBER
N / A
CIP #60178
FEDERAL PARTICIPATION
On the project ❑ YES ® NO On the Utilities ❑ YES ® NO
Pursuant to Cooperative Agreement Number C-0-2317 (Cooperative Agreement), the Orange County Transportation
Authority (OCTA) is partnering with the California Department of Transportation (Caltrans) in a project that proposes
to widen Interstate 5 (1-5). The project will also include improvements to the On -ramps and Off -ramps at interchanges
within the 1-5 Segment 2 project limits from Yale Avenue to the SR-55. Per the Cooperative Agreement, OCTA is the
lead agency for Right of Way Acquisition and Utility Relocation. The 1-5 Segment 2 Improvement Project proposes to
reduce traffic congestion, improve mobility as well as traffic operations to the existing five -mile stretch of the 1-5.
City of Tustin Water Department
300 Centennial Way
Tustin, CA 92780
Hereinafter referred to as "OWNER", owns and maintains
water facilities
within the limits of OCTA's project which requires
relocation of the 8" waterline
to accommodate OCTA's project.
It is hereby mutually agreed that:
WORK TO BE DONE
In accordance with Notice to Owner No. COT-56 dated July 10, 2024, OWNER shall relocate the
8-inch waterline and appurtenances. All work shall be performed substantially in accordance with
OWNER's Plan No. CIP #60178 dated May 14, 2024, consisting of 1 sheet, a copy of which is on
file in the office of OCTA at 550 S Main Street, Orange, CA 92863-1584.
Deviations from the OWNER's plan described above initiated by either OCTA or the OWNER, shall
be agreed upon by both parties hereto under a Revised Notice to Owner. Such Revised Notices to
Owner, approved by OCTA and agreed to/acknowledged by the OWNER, will constitute an
approved revision of the OWNER's plan described above and are hereby made a part hereof. No
work under said deviation shall commence prior to written execution by the OWNER of the Revised
Notice to Owner. Changes in the scope of the work will require an amendment to this Agreement
in addition to the revised Notice to Owner.
II. LIABILITY FOR WORK
Existing facilities are located in their present position pursuant to rights superior to those of the
STATE and will be relocated at OCTA expense.
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UTILITY AGREEMENT (Cont.)
Page 2 of 5
III. PERFORMANCE OF WORK
UTILITY AGREEMENT NO. COT-56
OWNER agrees to perform the herein -described work with its own forces or to cause the herein
described work to be performed by the OWNER's contractor, employed by written contract on a
continuing basis to perform work of this type, and to provide and furnish all necessary labor,
materials, tools, and equipment required therefore, and to prosecute said work diligently to
completion.
OWNER agrees to cause the herein described work to be performed by a contract with the lowest
qualified bidder, selected pursuant to a valid competitive bidding procedure, and to furnish or cause
to be furnished all necessary labor, materials, tools, and equipment required therefore, and to
prosecute said work diligently to completion.
Use of personnel requiring lodging and meal 'per diem' expenses shall not exceed the per diem
expense amounts allowed under the California Department of Human Resources travel expense
guidelines. Accounting Form FA 1301 is to be completed and submitted for all non -State personnel
travel per diem. OWNER shall also include an explanation why local employee or contract labor is
not considered adequate for the relocation work proposed.
Work performed by OWNER's contractor is a public work under the definition of Labor Code Section
1720(a) and is therefore subject to prevailing wage requirements.
Work performed directly by Owner's employees falls within the exception of Labor Code Section
1720(a)(1) and does not constitute a public work under Section 1720(a)(2) and is not subject to
prevailing wages. OWNER shall verify compliance with this requirement in the administration of its
contracts referenced above.
IV. PAYMENT FOR WORK
OCTA shall pay its share of the actual and necessary cost of the herein described work within 45
days after receipt of OWNER's itemized bill, signed by a responsible official of OWNER's
organization and prepared on OWNER's letterhead, compiled on the basis of the actual and
necessary cost and expense incurred and charged or allocated to said work in accordance with the
uniform system of accounts prescribed for OWNER by the California Public Utilities Commission
(PUC), Federal Energy Regulatory Commission (FERC) or Federal Communications Commission
(FCC), whichever is applicable.
It is understood and agreed that OCTA will not pay for any betterment or increase in capacity of
OWNER's facilities in the new location and that OWNER shall give credit to OCTA for the accrued
depreciation of the replaced facilities and for the salvage value of any material or parts salvaged
and retained or sold by OWNER.
Not more frequently than once a month, but at least quarterly, OWNER will prepare and submit
detailed itemized progress bills for costs incurred not to exceed OWNER's recorded costs as of the
billing date less estimated credits applicable to completed work. Payment of progress bills not to
exceed the amount of this Agreement may be made under the terms of this Agreement. Payment
of progress bills which exceed the amount of this Agreement may be made after receipt and
approval by OCTA of documentation supporting the cost increase and after an Amendment to this
Agreement has been executed by the parties to this Agreement,
The OWNER shall submit a final bill to OCTA within 360 days after the completion of the work
described in Section I above. If OCTA has not received a final bill within 360 days after notification
of completion of OWNER's work described in Section I of this Agreement, and OCTA has delivered
to OWNER fully executed Director's Deeds, Consents to Common Use or Joint Use Agreements,
for OWNER's facilities (if required), OCTA will provide written notification to OWNER of its intent to
close its file within 30 days. OWNER hereby acknowledges, to the extent allowed by law, that all
remaining costs will be deemed to have been abandoned. If OCTA processes a final bill for payment
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UTILITY AGREEMENT (Cont.)
Page 3 of 5
UTILITY AGREEMENT NO. COT-56
more than 360 days after notification of completion of OWNER's work, payment of the late bill may
be subject to allocation and/or approval by the OCTA Board of Directors.
The final billing shall be in the form of a detailed itemized statement of the total costs charged to
the project, less the credits provided for in this Agreement, and less any amounts covered by
progress billings. However, OCTA shall not pay final bills which exceed the estimated cost of this
Agreement without documentation of the reason for the increase of said cost from the OWNER and
approval of documentation by OCTA. Except, if the final bill exceeds the OWNER's estimated costs
solely as the result of a Revised Notice to Owner as provided for in Section I, a copy of said Revised
Notice to Owner shall suffice as documentation. In either case, payment of the amount over the
estimated cost of this Agreement may be subject to allocation and/or approval by the OCTA Board
of Directors.
In any event if the final bill exceeds 125% of the estimated cost of this Agreement, an Amended
Agreement shall be executed by the parties to this Agreement prior to the payment of the OWNER'S
final bill. Any and all increases in costs that are the direct result of deviations from the work
described in Section I of this Agreement shall have the prior concurrence of OCTA.
Detailed records from which the billing is compiled shall be retained by the OWNER for a period of
three years from the date of the final payment and will be available for audit by State and/or Federal
auditors. In performing work under this Agreement, OWNER agrees to comply with the Uniform
System of Accounts for Public Utilities found at 18 CFR, Parts 101, 201, et al., to the extent they
are applicable to OWNER doing work on the project that is the subject of this Agreement, the
contract cost principles and procedures as set forth in 48 CFR, Chapter 1, Subpart E, Part 31, et
seq,, 23 CFR, Chapter 1, Part 645 and 2 CFR, Part 200, et al. If a subsequent OCTA and/or Federal
audit determines payments to be unallowable, OWNER agrees to reimburse AGENCY upon receipt
of AGENCY billing. If OWNER is subject to repayment due to failure by OCTA to comply with
applicable laws, regulations, and ordinances, then OCTA will ensure that OWNER is compensated
for actual cost in performing work under this agreement.
V. GENERAL CONDITIONS
All costs accrued by OWNER as a result of OCTA's request of March 13, 2023, to review, study
and/or prepare relocation plans and estimates for the project associated with this Agreement may be
billed pursuant to the terms and conditionsof this Agreement.
If OCTA's project which precipitated this Agreement is canceled or modified so as to eliminate the
necessity of work by OWNER, OCTA will notify OWNER in writing, and OCTA reserves the right to
terminate this Agreement by Amendment. The Amendment shall provide mutually acceptable terms
and conditions for terminating the Agreement.
All obligations of OCTA under the terms of this Agreement are subject to the acceptance of the
Agreement by OCTA Board of Directors or the Delegated Authority (as applicable), the passage of
the annual Budget Act by the State Legislature, and the allocation of those funds by the California
Transportation Commission.
OWNER shall submit a Notice of Completion to OCTA within 30 days of the completion of the work
described herein.
It is understood that said highway is a Federal aid highway and accordingly, 23 CFR, Chapter 1,
Part 645 is hereby incorporated into this Agreement.
In addition, the provisions of 23 CFR 635,410, Buy America, are also incorporated into this
agreement. The Buy America requirements are further specified in Moving Ahead for Progress in
the 211t Century (MAP-21), section 1518; 23 CFR 635.410 requires that all manufacturing
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UTILITY AGREEMENT (Cont.)
Page 4 of 5
UTILITY AGREEMENT NO. COT-56
processes have occurred in the United States for steel and iron products (including the application
of coatings) installed on a project receiving funding from the FHWA.
Owner understands and acknowledges that this project is subject to the requirements of the Buy
America (BA) law (23 U.S.C., Section 313) and applicable regulations, including 23 CFR 635,410
and FHWA guidance. OWNER hereby certifies that in the performance of this Agreement, for
products where BA requirements apply, it shall use only such products for which it has received a
certification from its supplier, or provider of construction services that procures the product
certifying BA compliance, This does not include products for which waivers have been granted
under 23 CFR 635.410 or other applicable provisions or excluded material cited in the Department's
guidelines for the implementation of BA requirements for utility relocations issued on December 3,
2013.
OCTA further acknowledges that OWNER, in complying with the Buy America Rule, is expressly
relying upon the instructions and guidance (collectively, "Guidance") issued by Caltrans and its
representatives concerning the Buy America Rule requirements for utility relocations within the
State of California. Notwithstanding any provision herein to the contrary, OWNER shall not be
deemed in breach of this Agreement for any violations of the Buy America Rule if OWNER's actions
are in compliance with the Guidance.
AB 262 — Buy Clean California Act of 2017 requires as of January 1, 2019, that the Department of
General Services (DGS) is to publish in the State Contracting Manual (SCM) a maximum acceptable
level of global warming potential (GWP) for each category of required materials. The categories of
eligible materials are, carbon steel rebar, flat glass, mineral wool board insulation and structural
steel. A statement of Environmental Product Declaration (EPD) is required prior to beginning of
relocation work, to the extent required by law.
THE ESTIMATED COST TO OCTA FOR THE ABOVE -DESCRIBED WORK IS $665,326.00
Signatures on Following Page
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UTILITY AGREEMENT (Cont.)
Page 5 of 5
UTILITY AGREEMENT NO. COT-56
IN WITNESS WHEREOF, the above parties have executed this Agreement the day and year above written.
Owner:
City of Tustin
APPROVED
M
Michael Grisso
Director of Public Works
Date:
ORANGE COUNTY TRANSPORTATION
AUTHORITY,
a public entity
APPROVED
M
El
Ja G. Beil, P.E.
E46utive Director, Capital Programs
Date: D Z g 2