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HomeMy WebLinkAbout04 - CC-4 - Cooperative Agreement for Construction - 6/7/2016CITY COUNCIL AGENDA REPORT MEETING DATE: JUNE 7, 2016 ITEM NUMBER: CC -4 SUBJECT: COOPERATIVE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE CITY OF COSTA MESA FOR THE CONSTRUCTION OF A PORTION OF THE SANTA ANA DELHI DIVERSION CHANNEL PROJECT DATE: MAY 26, 2016 FROM: PUBLIC SERVICES DEPARTMENT/ENGINEERING DIVISION PRESENTATION BY: ERNESTO MUNOZ, PUBLIC SERVICES DIRECTOR FOR FURTHER INFORMATION CONTACT: BALTAZAR MEJIA, ACTING CITY ENGINEER (714)754-5335 RECOMMENDATION: Approve a Cooperative Agreement with the City of Santa Ana for the construction of a portion of the Santa Ana -Delhi Channel Project within the limits of the City of Costa Mesa. 2. Authorize the Chief Executive Officer and City Clerk to execute the Cooperative Agreement. BACKGROUND: The project proposes to divert dry weather low -flow urban discharges from the Santa Ana -Delhi Channel into the Orange County Sanitation District (OCSD) trunk sewer main to address surface water quality issues in accordance with the Orange County Municipal Separate Storm Sewer System (MS4) permit. The primary intent of the diversion system is to address the current Selenium Total Maximum Daily Load (TMDL) requirements. In addition, it will address TMDLs for bacteria, trash, toxics, metals, nutrients and remove dry weather flow discharges to the Upper Newport Bay from the Santa Ana Delhi Channel, and therefore, effectively reduce pollutant loads to the bay. A number of agencies are involved in the funding of this project and are entering into a 25 -year agreement to design, build, and maintain it. The agencies involved include the Orange County Flood Control District, the County of Orange, the cities of Santa Ana, Newport Beach, and Costa Mesa, the Irvine Water District (IRWD), and the Orange County Water District (OCWD). The City of Santa Ana is the lead agency for this project, assuming the role for the coordination, design, and administration. The total project cost is approximately $9.4 million consisting of a Project Capital Cost of $8.4 million and an Operating and Maintenance Cost (O&M) of $1.0 million. The City of Costa Mesa's share of the project cost including both capital and O&M costs is a not to exceed amount of $600,000.00. ANALYSIS: The scope of work for the project includes the installation of the Diversion Structure (debris/trash collection unit) in the channel and the construction of a forced main storm drain pipeline along the Delhi Channel and Bristol Street, which ends at Baker Street where it ties to the Orange County Sanitation District sewer main. The City of Costa Mesa currently has two major projects proposed to be constructed within the limits of the Santa Ana Delhi Channel Diversion Project, the Bristol Street Pavement Rehabilitation Project and the Bristol Street Median Improvement Project. In order to achieve significant savings and avoid construction conflicts, the City of Costa Mesa will take the lead to administer the construction of the portion of the Diversion Project forced main pipeline within the limits of the street rehabilitation and median improvement projects. All three projects are being combined to be executed under a single contract. Savings anticipated from this approach include those realized from reduced construction management, equipment mobilization, street reconstruction costs, reduced traffic control, as well as a reduced construction schedule. To realize these cost savings, and allow all three projects to proceed together without delays, the City of Santa Ana and the City of Costa Mesa desire to enter into a Cooperative Agreement. This agreement outlines a funding exchange in which Santa Ana will advance funds to the City of Costa Mesa, in an amount not to exceed $1,100,000.00 to allow for the portion of the Diversion Project between Newport Boulevard and Baker Street to move to the bid award and construction phases. The advance is comprised of the City of Costa Mesa's share for the entire project in the amount of $600,000.00 and the City of Santa Ana's share of the construction cost for the Delhi portion of $500,000.00. The Cooperative Agreement requires the City of Costa Mesa to reimburse the City of Santa Ana for its $600,000.00 share by January 31, 2017. ALTERNATIVES CONSIDERED: The City Council may elect not to approve the Agreement. However, this alternative is not recommended as this will cause the Diversion project not to proceed as proposed. The City of Costa Mesa is a partner to the Diversion project and the majority of the pipeline is within the City's right-of-way. As a result, the future construction of the pipeline within the limits of the two City projects will require reconstruction of Bristol Street as per the City's moratorium requirements for recently paved streets and increase the overall project cost, including the City's share. FISCAL REVIEW: The City's share for the Delhi Channel Diversion Project is not to exceed $600,000.00. This amount includes the capital cost for the construction and operating/maintenance cost to cover the long term maintenance of the project. Funding is being requested in the Fiscal Year 2016-2017 Capital Improvement Budget from the Capital Improvement Fund to cover the share of Costa Mesa's cost of construction and maintenance of the Delhi Channel Diversion Project. LEGAL REVIEW: The City Attorney has reviewed and approved the Cooperation Agreement as to form. FA CONCLUSION: Approval of the Cooperative Agreement is being recommended. A major part of this project is located within the City of Costa Mesa's right-of-way. The City of Santa Ana has taken the lead role in the coordination, design, and administration of the overall Delhi Channel Diversion Project. The attached Cooperative Agreement will provide funds to facilitate the construction of a portion of the project within the City of Costa Mesa's right-of-way. Staff recommends that the City Council authorize the Chief Executive Officer and the City Clerk to execute the Cooperative Agreement. ERNESTO MUNOZ BALTAZAR MEJIA Public Services Director Acting City Engineer ATTACHMENTS: 1 - Cooperative Agreement 2 — Vicinity Map DISTRIBUTION: Chief Executive Officer Assistant Chief Executive Officer City Attorney City Clerk Staff File 3 ATTACHMENT 1 COOPERATIVE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE CITY OF COSTA MESA FOR THE CONSTRUCTION OF THE SANTA ANA DELHI DIVERSION FORCED SEWER MAIN UNDER BRISTOL STREET FROM BAKER TO NEWPORT BEACH BOULVARD This cooperative agreement C'Agreenenf) is made and entered into this day of 2016, by and between the CITY OF COSTA MESA, a municipal corpozation ("COSTA MESA"), and the CITY OF SANTA ANA, a municipal corporation ("SANTA ANA"). RECITALS: A. WHEREAS, the City of Santa Ana, Orange County Flood Control District, the County of Orange, the City of Newport Beach, the City of Costa Mesa, and the Irvine Ranch Water District are all parties to a separate agreement for the construction, maintenance, and operation of the Santa Ana Delhi -Diversion Channel Project C'Diversion Channel Project' ); which is a collaborative effort to address regional water quality issues, and B. WHEREAS, one aspect of the Diversion Channel Project's proposed plan is to install, operate, and maintain forced sewer main pipelines within public street right-of-way of COSTA MESA, and C. WHEREAS, COSTA MESA agreed to contribute to the Diversion Channel Project a lump sum amount of $600,000, and D. WHEREAS, in a separate and different project to begin before construction of the Diversion Channel Project, COSTA MESA will hire its own contractor to perform certain work in the median on Bristol Street within the city of COSTA MESA (`Bristol Street Median Project"}, and E. WHEREAS, to benefit the Diversion Channel Project in terms of time and cost savings, COSTA MESA is agreeable to having its contractor for the Bristol Street Median Project, perform that portion of the Diversion Channel Project which calls for forced sewer main pipeline to be installed within Bristol Street between Baker Street to Newport Boulevard; as shown in Exhibit A, and F. WHEREAS, COSTA MESA desires, therefore, that COSTA MESA'S lump sum financial obligation to the Diversion Channel Project be offset by the cost of work performed by its contractor on the Bristol Street Median Project related to installing the forced sewer main pipeline, and G. WHEREAS, SANTA ANA is agreeable to advancing to COSTA MESA the funds required to cover the costs incurred by COSTA MESA to pay its contractor on the Bristol Street Median Project to install the forced sewer main pipeline ("Advanced Expended Funds'; Page 1 of 12 as specified in Exhibit B; and H. WHEREAS, COSTA MESA shall reixuburse SANTA ANA without interest the Advanced Expended Funds on or before January 31, 2017, and I. WHEREAS, the Diversion Channel Project is being designed by SANTA ANA, including that portion to be constructed and installed by COSTA MESA'S contractor on the Bristol Street Median Project, as shown in Exhibit "A," attacbed hereto and incorporated by this reference, and J. WHEREAS, for purposes of regulatory environmental review, SANTA ANA is the lead ageccy on the Diversion Channel Project and COSTA MESA is the lead agency on the Bristol Street Median. Project, and K WHEREAS, that portion of the Diversion Channel Project that is being constructed and installed by COSTA MESA'S contractor as part of the Bristol Street Median Project is declared by SANTA ANA to be categorically exempt under Section 15301 of the California Enviroamental Quality Act (CEQA) Guidelines — Class 1(c), (Existing Highways and Streets, Sidewalks, Gutters, Bicycle and Pedestrian Trails, and similar Facilities). NOW, THEREFORE, the parties agree as follows: A. COSTA MESA Rights and Duties: 1. COSTA MESA shall be the lead agency for construction of the Bristol Median Project and shall incorporate into said project, construction of that portion of the Diversiou Channel Project to be constructed and installed by COSTA MESA'S contractor on the Bristol Street Median Project, as shown in Exhibit "A" (`Torted Sewer Main Pipeline") COSTA MESA shall provide all construction management COSTA MESA shall be solely responsible for the administration and performance of the contract awarded to the contractor for the construction of the Bristol Median Project and Forced Sewer Main Pipeline. COSTA MESA shall use the Advanced Expended Funds, in the amount not to exceed $1,100,000.00, for the sole purpose of paying for construction and construction management costs associated with installation of the Forced Sewer Main Pipeline. No work on the Forced. Sewer Main Pipeline shall commence until the Santa Ana -Delhi Channel Diversion Project Agreement D15-013 has been approved by all of the Funding Partners, within that agreement. In the event that the Agreement D15-13 is not approved by all of the Funding Partners or, after approval it is later determined that the Diversion Channel will not go forward for any reason, COSTA MESA shall reimburse SANTA ANA the $1,100,000.00 within forty five (45) calendar days of said determination; provided however, if such a deterrnivation is made after COSTA MESA's contractor has already completed work on the Forced Sewer Main Pipeline, then COSTA MESA shall withhold from reimbursement the actual costs of Page 2 of 12 construction/installation of the Forced Sewer Main Pipeline; and if such determination is made before construction begins, but after COSTA MESA'S contractor bid for and was awarded the contract, then COSTA MESA shall withhold from reimbursement the costs incurred by its contractor to secure the award of contract for the Forced Sewer Main Pipeline work that will not be going forward and for related claims by the contractor. 2. COSTA MESA shall reimburse SANTA ANA, without interest, the COSTA MESA's portion of the Advanced Expended Funds of $600,000 on or before January 31, 2017. 3. Change orders associated with the Forced Sewer Main Pipeline must receive the written approval of the City Engineer of SANTA ANA prior to implementation, which approval shall not be unreasonably withheld. SANTA ANA shall have a minunum of five (5) working days to review and approve change orders. 4. COSTA MESA shall provide SANTA ANA final record drawings for the Forced Sewer Main Pipeline portion of the Bristol Median Project within sixty (60) days of the completion and acceptance of construction. B. SANTA ANA Rights and Duties: 1. SANTA ANA shall have the right to enter and inspect the Forced Sewer Main Pipeline and the Bristol Median Project at all times for the purposes of overseeing COSTA MESA; lead agency functions and the work being performed by COSTA MESA's contractor, provided however, SANTA ANA shall indemnify, defend, and hold harmless COSTA MESA from any and all claims of damages or injury to SANTA ANA representatives while on the project premises 2. SANTA ANA shall transfer andgive to COSTA MESA within thirty (30) days of the effective date of this Agreement, the Advanced Expended Funds totaling One Million and One Hundred Thousand Dollars ($1,X00,000.00). 3. SANTA ANA shall review all. requests. for progress payments for the Forced Sewer Main Pipeline, and shall approve or disapprove said request with five (5) business days of receipt of same by SANTA ANA. SANTA ANA shall timely provide necessary infonxnation and/or documents to substantiate its disapproval of a progress payment request. C. JOINT RIGHTS AND DUTMS: 1. Responsibilities, Obligations and Mutual Indemnity: a. GOVERNING LAW & VENUE - This Agi eoment shall be governed by and construed under the laws of the State of California. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court Page 3 of 12 of competent jurisdiction located in Orange County, California, and the Parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding the provisions of Code of Civil Procedure Section 394. The Parties agree to waive any and all rights to request that an action be transferred for trial to another County. b. NOTICES - Any notice or other written instrument required or permitted by this Agreement to be given to any Party shall be deemed received when personally served or transmitted by facsimile, or forty-eight (48) hours after being deposited in the U.S. Mail, postage prepaid, First Class or certified„ and addressed as follows: City of Santa Ana. Ci of Costa Mesa Tyrone Chesanek Baltamr Me'ia Principal_ CivilFla. ineer AcbngC�Engmeer _ 20 Civic Center Plaza, M-22 P.O. Box 1988 Santa Ana, CA 92702 Public Services 77 Fair Drive, 4th Floor Costa Mesa, CA. 92626 c. ATTORNEYS' FEES - In the event suit is brought by any Party to enforce the terms and provisions of this Ag€ecment, or to secure the performance hereof, each Party shall bear its own attorneys' fees. FORCE MAJEURE - Except for the payment of money, no 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, Acts of God, strike or labor dispute, war or other violence, acts of third parties not within either Party's reasonable control or any law, order or requirement of any govemrnenW agency or authority. d. 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. e. MODIFICATION — Any alterations, changes or modifications to this Agreement shall be in the form of a written amendment, which shall be signed by each Party. £ ASSIGNMENT - No Party shall assign its performance of this Agreement, nor any Part thereof, without the prior written consent of the non-assig ung Party. Any assignment made in violation of this section shall be null and void. g. INDENR TI FICATION BY SANTA ANA: SANTA ANA shall indemnify, defend and hold COSTA MESA, 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 as a result of any acts performed by SANTA ANA, its officers, agents, or employees, with respect to the Project, save and except to the extent such expense, liability or claim is proximately Page 4 of 12 caused in whole or in part by any negligence of the SANTA ANA, or by their respective officers, agents or employees, or by any act or omission for which SANTA ANA, or their respective officers, agents or employees are liable without fault. h. INDEMNIFICATION BY COSTA MESA: COSTA MESA shall indemnify, defend and hold SANTA ANA, its officers, agents and employees, harmless from any expense, liability or claim for death, injury, loss, damage or expense to persons or properly which may arise or is claimed to have arisen as a result of any acts performed by COSTA MESA, its officers, agents, or employees, with respect to the Project, save and except to the extent such expense, liability or claim is proximately caused in whole or in part by any negligence of the COSTA MESA, or by their respective officers, agents or employees, or by any act or omission for which COSTA MESA, or their respective officers, agents or employees are liable without fault. i. TERMINM ION - Either Party may terminate this Agreement upon the other Party's failure to comply with any term or condition of this Agreement, as long as the terminating party is not in default of any term or condition of this Agreement. To initiate termination, the terminating party must provide the def miting party with. a written 'Notice of Termination" stating its intent to t=-dnate and describing all terms and conditions with which the defaulting party has failed to comply. If the defaulting party has not remedied the default or not initiated good faith efforts to remedy its default within thirty (30) days after receiving the Notice of Termination, this Agreement will antomatically terminate_ This Agreement may also be terminated upon the written mutual consent of both parties. j. ENTIRE AGREEMENT - This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. RECOMMENDED FOR APPROVAL: Fred Mousavipour Executive Director Public Works Agency RECOMMENDED FOR APPROVAL: Ernesto Munoz, P -E. Public Services Director Page 5 of 12 IN WITNESS WHEREOF, COSTA MESA has caused this agreement to be executed by its Mayor and attested by its Clerk, and SANTA ANA has caused this Agreement to be executed by its City Manager and attested by its Clerk, all thereunto duly authorized by the COSTA MESA City Council and the SANTA ANA City Council, respectively. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: .• A Jose Sandoval Chief Assistant City Attorney APPROVED AS TO FORM: Tom Duarte City Attorney CITY OF SANTA ANA, a Municipal corporation of the State of California 0 David Cavazos City Manager ATTEST: Maria D. Huizar Clerk of the Council CITY OF COSTA MESA, a California municipal corporation Un Tom Hatch Chief Executive Officer ATTEST: Brenda Green City Clerk Page 6 of 12 EXHIBIT "A" .. . .... ... . Nr ML D �r df;4 �iG�4k4i�" p rrxt¢w oc�rw �+a�asgrsw p r�ru,nMa�waww,rwarna�ax�aa fl Nvua+w+wxc rrwK�a�a+..�a.m sr� p uwwwa+aR�rwu�,�v�iam, p *r uvawammmmski n ��• p ncrans�w,�waua�asaraw Bgw�`w,,m�����-.qq� u�ppw�1 a�uom RQAb/11�1AMb1�W�'�rfA ® RMNT b`C /tllnY aYL b0oai010�F0 �IY1i ® t Ni RSR �R 07~ 3C Cf fmi ! prllb PM DWVKMN lN�bYIY! UYIi b wR n C� A]PEiiP+•c SANTA AWA ❑7R VF,ITT�1Pq]-L�pfpK��G]gI•pgph4Y2•TLTI IEFpR'c TOV POS nuiic� so courrv�rai -] LEXHIBIT"All cc"ffrpuar o Q M>•A RCHI A� Ia 1iVi / OI ti6't taw ® fRh+M rwtr viMpt;it iie4lp iW aqa Ci taisalYR w/e Nrut ar rw OtLa tel tifitpM d crew nsapals.n�a sarin romp CD xru caro arae lw iwt wt 0(✓l/fLiMina an"Ia topiwo Fmll MOF y WNW O nR vtlGroali tft tart.a elaRr7N� a i�o�.`�°s�ta um ttw�c tMt Ev Q� Won Mt:/wow wr.WOW r aaa /r ew �-ao m i/MNf RI�,." MM PA fA1G OSMO \ ROI W I Itm MMJQ i MMR i */NMIAOSM r rUA2 LOW 1 ~DIM I aA1e IFMI KIn/'�t+r 7Mt I7111QA � IW err ewratxnot wo w MK of HQ �� Fjy`f.�ii [+LUsd1i"-eypl-pM�6-� 4 .4r' �\C-�LiAVJ)UJj TPaE7�FYd1 Ol� SANTA 40 a N EXHIBIT "A" •4 1414 *1+ KlYWI}e Y `1/ q^QiRI�C�Rs��Iyi�y�p� �.eTER +rruac.. on.pe.r.t. nerarvv. �. �.�crccwMnesea.ca � a.a, w. fl worx�nw x�,cH w.K.x ice rcu.vas +R+xow [] �Li.Wf M ilFs rel •�.e ARS`»ay. �. peon lrt, wbx la ur w5 Q w ers+e Iv. na.e.or.a+elnl r. e.oacr �Iv.as.. � mwn QQ r.t r ccw�nv m ass l ei rirr.00e.ps V IR yyt eu���� mow�ip�G L� � .amex we saaa 1wx Ayes aei ocs n res.-oe 60400 0+50 61.50 43460 65460 1t60 65+0 66+50 07450 66460 mm amw-Kd> 4.o wus Anne K n ceq� 'T.p' FABL l•r5•i7i-N77 Fl[� 7195 h1mcf TO LOH7FWCFaR ?i Fetoai FH7 YFLOFiLES 1992 SANTA ANPIPELINECPROJECDIVERSION STA 5-1+m Tn "+50 XHIBIT "Am o n o a ����1■�� mai �� ■�� ■fes _ 11tw T 7 r SANTA 1 Q uex�rw+.ns oAaw�ttrcaa��on Q A�•.�wa+v�e�cwcwuw.a,..cs.w,e p. .n.: swn.aa sn me.n {j r+.r�c ra. rvan a..r.w A r.am �n nnx O rn Y �oiryv,r n+ rcxw r a wf c.e ® mea s-aawu.. rnawu..asra wr CQHBM-� NOTES � �.rrR+rs.axyw�wi ® R C: �O00P Y0 Mp iy1{kFAM Ovum iv � iri�MrW[ At" • owNfil4[1I...644 pf . smogm r wwea�aww a .x.P n..a K .ane new. : ao...no.ac.tw.w ice, G r� F GIQ 0458 70 Sf 79#50 60:50 51+50 02*SD Mao EXHIBIT "A" x3«50 6+r55 m«so MH9 � � * KWU* CoNmn taro omm [} Noa MIfOM[Owi0OM1[Ix./RriQt ml g' nas�uwln mwyvau ralrw ecv�sR+maas �}+ sar..l nc,oir rw lofsl suns eoean O KAUm rfao mmm% t flair wna. rw nrss aosw�e is rsesp paHlll rrtr�t fl ncvfrrsylrmmrs.awsar7eas se 6 ilsiOia�asii`.wi.isi uro Ilrnc � am A u/onmrecr rna lane xacv maw sa © � rc rw rv/"a�•vo�iws�i">-rn nua ry ommowmm -mm M 1{rC{ l NN7R 0M.j rdM MM WIb, a yqr Rl�fpClR I�CaRNOaq bl llf FFAa101 N IfR'IW ff M 011R�1 a arswurac caµsar r NtlOM 0/0[ MKS .'� o•GC t+' �eR �auv TOlL FIIfB I•SM•172.1163 Ta�i1'r�i x�a �i�s NOTICE TO CAI Twrm SANTA ANA PIPELINE�F BTA 71M TO EXH I BIT " r ADVANCED EXPENDED FUNDS ANALYSIS ENGINEERS ESTIMATE Iid tem Description Unit Quantity Pnc�.e Extended Cost 1 14" PVC Force Main LF 3774 $222 $837,828 2 Gravity Sewer Manhole LS I 1 $12,000 $12,000 3 16" VCP Gravity Sewer Main LF 72 $150 $10,800 4 84"TnmkMain Manhole LS 1 $1,500 $1,500 Connection 5* Pothole Utilities Not Shown In EA 10 $350 $3,500 The Contract Doe mments 6* 14" PVC Siphon EA 10 $6,000 $60,000 14" PVC Forced Main Instalied 7* Deeper Than, l Foot But Legs LF 500 $50 $25,000 Than 3 Feet Engineers Estimate $950,628 Contingency $149,372 Project Estimated Total $1,100,000 FUNDING SOURCE SUMMIARY City of Santa Ana $ 500,000 City of Costa Mesa $ 600,000 Total Project Funding $1,100,000 Advanced by City of Santa Ana ATTACHMENT 2 BEGIN PROJECT END PROJECT 5' 1 1 1 1 AV A /)/ 1 Ill ('II 1 V,NI I_ /)/V/ K.ti-lO,\ Nk(W (-1 ( 'I I) Ol- ( W / 1 A1/ ti 1 NOT TO SCALE ssin Project �Ilk ..Ii}, / - �- qty 11�•s i �} _ � r; . T tit KTABL Ar GCSG BAKER 84" r I► �' - �. • " ' -. 'i COWECTION 16 r •�. �t. r we lo . y DIRFCTI.OhAL DR+.LL UNDER 7? �' ` !}ii CTigNAL Uf�t�L NAl ' rt �; ' F >. f t �. Rf F F F ff LEGEND PROPOSED SEWER FORCE MA,N CENT=RL NE 2 1s li EAL P. F6aCF MAIN aUGNStF Nt SOQ — f SCALE: I' .. ISG . _.. ... _