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HomeMy WebLinkAboutSUNSET BEACH SANITARY DISTRICT (SBSD) - 2001-04-02 RECEIVED 2006 JUL -6 PM 12: 2' CITY CL£.; Or Council/Agency Meeting Held: HUNTN' 14 U.,CF Deferred/Continued to: *E ro ed ❑Conditionally Approved ❑Denied ity rk'S gnatu Council Meeting Date: 7/17/2006 Department WNumber. PW 06-047 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AN ITYk MEMBERS SUBMITTED BY: PEN LOPE C BRETH-GRA /DPDMINISTRATOR PREPARED BY: ROBERT F. BEARDSLEY, PE, D]R PUBLIC WO SUBJECT: Award Construction Contract for the Warner Avenue Gravity Sewer; CC-1269 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: On June 27, 2006, bids were received for the Warner Avenue Gravity Sewer Project, CC-1269, and the project is ready to be awarded. A component of project funding is a contribution from the Sunset Beach Sanitary District (SUNSET) that requires an amendment to the current agreement between SUNSET and the City. Funding Source: Funds are budgeted in the Sewer Service Fund, 51185201.82600. Funding for this project includes Sewer Service Charge User Fees and an agreement with SUNSET. SUNSET will reimburse the City's Sewer Service Fund $80,000 per year over a ten-year period, plus approximately $300,000 for specific work items. The engineer's cost estimate for this project is $5,900,000. Recommended Action: Motion to: 1. Approve the project plans and specifications for the Warner Avenue Gravity Sewer, CC- 1269; 2. Accept the lowest responsive and responsible bid submitted by Vadnais Corporation, in the amount of$6,118,725.00; 3. Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney; 4. Authorize the Director of Public Works to expend up to fifteen percent (15%) in construction change orders; and 5. Authorize the Mayor and City Clerk to execute Amendment No. 1 to the Agreement between the City of Huntington Beach and the Sunset Beach Sanitary District. Alternative Actionts): Reject all bids and direct staff on how to proceed. REQUEST FOR ACTION MEETING DATE: 7/17/2006 DEPARTMENT ID NUMBER:PW 06-047 Analysis: This project will construct 4,100 feet of new gravity sewer main along Warner Avenue, from Pacific Coast Highway to Los Patos Avenue. The project will be built in conjunction with the ongoing replacement of Sewer Lift Station "D", allowing for the abandonment of existing Lift Stations "B" and V. The construction of the new gravity sewer is intended to save both capital and operating costs by reducing the number of sewage lift stations to be maintained. This project was previously advertised for bid in December 2004. The bids received were substantially in excess of the initial $3.3 million estimate and the City Council subsequently rejected all bids. In the post-bid analysis, it was discovered that the increased cost of steel and the specialized construction method contributed to the bids coming in significantly higher than anticipated. Staff reviewed the design with the consultant, and revisions were made in an effort to reduce costs. Additional funds were also budgeted in the Sewer Service Fund for the project. Bids were opened publicly on June 27, 2006, and are listed in ascending order: Rank Bidding Contractor Bid Amount 1. Vadnais Corp. $6,118,725.00 2. James W. Fowler $6,204,110.00 3. 1 Michels Pipeline $7,195,391.00 4. Affholder, Inc. $7,796,100.00 5. Miaden Buntich $8,310,600.00 6. BRH Garver $8,354,950.00 The reference check for Vadnais Corporation provided acceptable responses from past clients. Staff recommends that the City Council accept the bid from Vadnais Corporation as the lowest responsive and responsible bidder. A contingency of approximately 15% is requested for this project due to the complexities of the construction, depth of the excavation and potential for unforeseen conditions. These funds are intended for use only in the event that field conditions warrant an additional expenditure. In compliance with Resolution No. 2002-119, prior City Council authorization is necessary so that construction will not be delayed. Amendment No. 1 to the Agreement between the City of Huntington Beach and the Sunset Beach Sanitary District (SUNSET), allows for a monetary contribution toward this project. Special consideration in the design of this project allowed for the abandonment of SUNSET's existing sewer lift station, located near the intersection of Pacific Coast Highway and Warner Avenue. Abandonment of its lift station and construction of a new gravity sewer line is part of the project. The agreement obligates SUNSET to fund these improvements, totaling approximately $300,000. The City will pay the contractor for SUNSET's expenses during the construction and SUNSET will reimburse the City immediately after the project is completed. In add;tion, SUNSET agrees to contribute $800,000 over a 10-year period, to go toward the funding of the overall project. MDocuments and SettingslbazantdlLocal SetGngs7emporary Internet Files10LKM06-047 July 17 Erdman(Award Warner Avenue Gravity Sewer).doc -2- 71512006 2:33 PM REQUEST FOR ACTION MEETING DATE: 7/1712006 DEPARTMENT ID NUMBER:PW 06-047 Public Works Commission Action: The Public Works Commission reviewed and unanimously approved this project on June 18, 2003. Environmental Status: Pursuant to the California Environmental Quality Act (CEQA), the project requires a Negative Declaration. COASTAL DEVELOPMENT PERMIT 03-15 and MITIGATED NEGATIVE DECLARATION NO. 03-01 were acted upon by the Zoning Administrator of the City of Huntington Beach on November 17, 2004, and conditionally approved. Attachment(s): � - 1. Location Map 2. Amendment No. 1 to Agreement between City of Huntington Beach and Sunset Beach Sanitary District 3 copies) G:1R C A12006106-047 July W Erdman(Award Warner Avenue Gravity Sewer).doc 3- 613012006 3:23 PM ATTACHMENT # 1 of sl '$ ABANDON 7} EITSTING LIFT STATION B WEATHERLY BAY y WNW \\ ABANDON EXISTING VVV LIFT STATION D \ i WARNER AVE.— L95 PARS ABANDONMENT OF E1aSTtN0 SBSD PROPOSED GRAVITY SEWER REPLACEMENT LIFT STATION ABANDON COSTING LIFT STATION C BOI.SA CHICA ECOLOGICAL RESERVE PROPOSED LIFT = STATION D LOCATION sr A A s DETAIL AREA SHOWN ABOVE rACwne �M SCALE: 1' = W WARNER AVENUE GRAVITY MAIN , CCU 1269 b ,e CITY 4F HUNTINGTON BEACH 1619 DEPARTMENT OF PUBLIC WORKS 1 of 1 v v ATTAC H M E N T #2 AMENDMENT NO. I TO AGREEMENT BETWEEN CITY OF HUN77NOTON BEACH AND SUNSET BEACH SANITARY DISTRICT This AMENDMENT is made and entered into this j1f day of GGLY ,2006 by and between the CITY OF HUNTINGTON BEACH,a California Municipal Corporation,hereinafter referred to as"CITY"and SUNSET BEACH SANITARY DISTRICT,hereinafter referred to as"SUNSET",a special district governed by the proAsions of the Sanitary District Act of 1923,. WHEREAS CITY and SUNSET are parties to that certain agreement dated April 2,2001 entitled"Agreement for the Conveyance of Wastewater Between the City of Huntington Beach and Sunset Beach Sanitary District"whereby SUNSET was afforded a capacity right in CITY's existing and expanded wastewater facilities,which agreement shall hereinafter be referred to as the"Original Agreement";and WHEREAS CITY has entered into a contract hereinafter referred to as"Existing Work"for the construction of certain pump stations and certain sewer lines at a depth and location which will substantially reduce capital,operation and maintenance costs which SUNSET would otherwise incur provided it remams connected to CITY's sewerage system. WHEREAS,CITY is about to let a separate contract for certain construction work,hereinafter"Proposed Work",which%rill provide a point of connection between the existing sewerage system of SUNSET and CITY's sewerage and pumping plant system. CITY will include in this contract a separate bid item which will define the cost of connecting the CITY's sewerage system to that of SUNSET. WHEREAS CITY and SUNSET desire to agree on the compensation that is due from SUNSET to CITY for said connection and for the benefits to be derived by SUNSET from the manner in which the sewers and pumping plants of CITY will be constructed . NOW,THEREFORE,it is agreed between CITY and SUNSET as follows: I. DESIGN,BUILD AND CONSTRUCTION SERVICES FOR SUNSET'S NEW GRAVITY SEWER CONNECTION. CITY will let for public bidding a contract for the construction of approximately 240 feet of I 8-inch connector pipe designed by SUNSET between SUNSET's Warner Avenue pumping plant and a point at the intersection of Pacific Coast Highway and Warner Avenue as more particularly described in the CITY's plans and specifications, which are hereby incorporated by this reference,in a manner that will enable SUNSET to abandon its existing Warner Avenue pumping plant. 4&M 428S-5424.1 I CITY has listed this work as a separate bid item within the larger construction contract,with the cost of said bid item estimated at$300,000. At such time as the bids for the Proposed Work have been received and opened, the bid item pertaining to the work described above shall be referred to the Board of Directors of SUNSET. SUNSET's Board of Directors shall have the right to approve or reject said bid item. In the event that said bid item is rejected,this Article I of Amendment Number 1 shall be of no further force or effect. In the event that said bid item is accepted by SUNSET's Board of Directors, SUNSET shall pay to CITY the amount actually expended by CITY in reference to said bid item,no later than thirty-five days after the date CITY records a Notice of Completion with respect to the Proposed Work. CITY shall be responsible to inspect and administer the contract for the Proposed Work and for making all payments due to the contractor. SUNSET BEACH shall have no responsibility to the CITY or to any other party with respect to the Proposed Work other than making the payment described above within the time provided 2. ALLOCATION OF EXPENSE OF EXISTING WORK OF CONSTRUCTION The parties have determined that the sum of$800,000 is SUNSET's fair share of the CITY's cost to design, administer and construct the Existing Work. CITY and SUNSET agree that SUNSET will pay to the CITY,without interest,this amount in yearly installments of$80,000 for ten consecutive years for a total cost sharing amount of $800,000. The initial payment will be made by SUNSET on or before February 1,2007, and each successive payment will be made on the anniversary of that date. 3. INSURANCE AND INDEMNITY With respect to the Proposed Work CITY agrees to require its contractor to famish to the CITY and to the DISTRICT a policy or certificate of liability insurance in which the CITY and the DISTRICT are named as an insured or an additional insured with the contractor. The policy furnished by the contractor shall be issued by an insurance company authorized by the Insurance Commissioner to transact business in the State of California with a policyholders rating of B+or higher and a financial class VII or larger. Notwithstanding any inconsistent statement in the policy or any subsequent endorsement,the CITY and DISTRICT shall be the insured or an additional insured in respect to the Proposed Work whether liability is attributable to the contractor,the CITY or the DISTRICT. The policy shall insure the CITY and the DISTRICT,their officers, employees and agents while acting within the scope of their duties on the Proposed Work,against all claims arising out of or in connection therewith. The coverage shall provide the following minimum limits: 4824-4285-5424.1 2 Bodily injury Each occurrence limit$1 million Products/Complete Operations aggregate limit$1 million General aggregate limit$1 million. Property Damage$200,000 each occurrence, $500,000 aggregate. The agreement between the CITY and its contractor shall further provide that the contractor shall save,keep and hold the CITY and the DISTRICT,their officers and agents and employees harmless from all damages, costs or expenses in law or equity that may at any time arise or be set up because of damages to property,or of personal injury received by reason of or in the course of performing the Proposed Work which may be caused by any willful or negligent act or omission by the contractor, and any of the contractor's employees, or any subcontractor. Neither the CITY nor the DISTRICT will be liable for any accident,loss or damage to the Proposed Work prior to its completion and acceptance. All liability insurance policies shall bear an endorsement or have attached a rider whereby it is provided that, in the event of expiration or proposed cancellation of such policies for any reason whatsoever,the CITY and the DISTRICT shall be notified by registered mail,return receipt requested,giving a sufficient time before the date thereof to comply with any applicable law or statute,but in no event less than 30 days before expiration or cancellation is effective. 4. REAFFIRMATION The foregoing provisions shall amend the contract dated April 2, 2001 by an addition to said contract. Except as specifically modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF,the parties who have caused this Agreement to be executed by and through their authorized officers on SUNSET BEACH SANITARY DISTRICT CITY OF HUNTINGTON BEACH,a municipal corporation of the State of California By: COUNTERPART 4824-4285-5424.1 3 IN WITNESS WHEREOF,the City of Huntington Beach has executed the aforesaid AMENDMENT NO. 1 TO AGREEMENT BETWEEN CITY OF HUNTINGTON BEACH AND SUNSET BEACH SANITARY DISTRICT by and through its authorized officers on 2006. Mayor City tlerk REVIEWED AND APPROVED: APPROVED AS TO FORM: Citj Administrator *-ZO4 ity Attorney INIT TED AND APPROVED: Director of Public Works i SUNSET BEACH SANITARY DISTRICT P.O. Box 1185 Sunset Beach, California 90742 --//9s (562) 493-9932 Minutes for the General Meeting of(lie Board of Directors April 13th, 2006-7:00 p.m. Sunset Beach NVoman's Cluh President Woods called the meeting to order at 7:00 p.m.. The following directors were present: President John Woods, Secretary Bob Hendler,Treasurer Greg Griffin, and Bill Bruton. Rob Argetsinger was absent. The following staff were present: Superintendent Jim Caslin, Engineer Tom Dawes and Chris Montana as clerk. Minutes of the March 9" 2006 meetin *: The Directors read the minutes of the March 9'h, 2006 meeting. Director Griffin moved to approve the minutes as read. Director Hendler seconded. Approved unanimously. Current Bills: The Directors reviewed Claims Transmitted for Payment, dated April 13''', 2006, in the amount of$182,305.80, plus SCE electric bills to be received which totaled $821.94, for a grand total of$183,127.74. Director Griffin moved to approve the Claims as prepared. Director Flendler seconded. Approved unanimously. Treasurer's Report -Fund Balance: Treasurer Griffin reported the Fund Balance as of March 31, 2006 to be$894,418.13. Superintendent's Maintenance Report: See attached. Engineer's Report: See attached. MOTION: Director Hendler moved to void Amendment 91 to the Agreement with the City of Huntington Beach dated April 2, 2001, which had been approved at the January 12'. 2006 meeting, and to accept the new Amendment #I which provides that the Contractor, rather than the City of Huntington Beach, will indemnify the District. All other terms of the agreement remain the same. Director Griffin approved. Passed unanimously. Adjournment- Director Hendler moved to adjourn the meeting. Director Griffin seconded. The meeting was unanimously adjourned at 8:30 p.m. JI-f n Woods, President ob a"dler, Secretary RCA ROUTING SH ET INITIATING DEPARTMENT: Public Works SUBJECT: Award Construction Contract for the Warner Avenue Gravity Sewer; CC-1269 COUNCIL MEETING DATE: July 17, 2006 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached Not Applicable ❑ Attached Contract/Agreement (wlexhibits if applicable) Not Applicable ❑ Si ned in full b the Cit Attorne Attached Subleases, Third Party Agreements, etc. Not Applicable (Approved as to form by City Attorne Certificates of Insurance A d b Att Attached pprove Y the Ci ryorne Y) Not Applicable Attached Fiscal Impact Statement (Unbudget, over$5,000) Not Applicable If applicable) Attached Bonds pP ) Not Applicable Attached Li Staff Report (if applicable) Not Applicable Commission, Board or Committee Re ort If applicable Attached p ( pP ) Not Applicable Find in s/Conditions for A roval and/or Denial Attached 9 pp Not A licable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator Initial City Administrator Initial rCity Clerk EXPLANATION FOR RETURN OF ITEM: Only)014 '(Below Sj�ac'e For City Clerk's Use RCA Author: D.Erdman CITY OF HUNTINGTON BE 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK JOAN L. FLYNN CITY CLERK August 1, 2006 Sunset Beach Sanitary District P. O. Box 1185 Sunset Beach, CA 90742-1185 To Whom It May Concern: Enclosed for your records are two executed originals of Amendment No. 1 to the Agreement Between the City of Huntington Beach and Sunset Beach Sanitary District. Sincerely, 01V- 490i Joan L. Flynn City Clerk JF:pe Enclosure: Agreements G:fol1owup:a;rmt Itr (Telephonc_714-536-5227) CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92fi48 OFFICE OF THE CITY CLERK CONNIE BROCKWAY ` CITY CLERK LETTER OF TRAl\SNiITTAI.OF ITEM APPROVED RY TIIE CITY COM'CHJ RF,DF.VF.LOPIIENT AGENCY OF THE CITY OF IIIUti-FINGTON BEACH DATE: April 5, 2001 TO: Sunset Beach Sanitary District ATTENTION: Pres. of the Board of Dir. Name P.O. Box 1185 DEPARTNIENT: Street Sunset Beach. CA 90742 REGARDING: _Agreement for the City.State,Zip Conveyance of Wastewater See Attached Action Agenda Item F-7 Date of Approval 4-2-01 Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: tS Q" Connie Brockway City Clerk Attachments: Action Agenda Page x Agreement x Bonds Insurance RCA Deed Other CC: R, Beardsley DPW x x Name Department RCA Atreem nt Insurance Other D. Webb DPW x X . Name Deparnwnt RCA Agmemeat Insurance Other Name Deparmxnt RCA Agmamat Insurance Other Name Department RCA A=retrt+eot Insurance Other X Risk Nfanagement Dept. Insurance I Td o p hens:714-536"S 227 f 6 6-w*11)s krl t-.ZITY OF HUNTINGTON BEA�.4i(a�d1' DAMi MEETING DATE: APRIL 2, 2001 DEPARTMENT ID MBER:PW 01-037 Council/Agency Meeting Held: 4Z-0) Deferred/Continued to: A proved O Condition ly Approved O Denied 6�1-0-0o— rJ M erk i nature Council Meeting Date: APRIL 2, 2001 Department ID Number: PW 01-037 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION V SUBMITTED TO: HONORABLE MAYOR AND CITY CO UNC L , `V -� SUBMITTED BY: RAY SILVER, CITY ADMINISTRATOR PREPARED BY: ROBERT F. BEARDSLEY, DIRECTOR OF PUBLI �IIfORKS _ - SUBJECT: APPROVE NEW AGREEMENT WITH SUNSET BEACH SANITARY DISTRICT ``' Statement of 15sUe,Funding Source, ecommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Should the City approve a new agreement with Sunset Beach Sanitary District detailing the terms and cost recovery for pumping wastewater through City- owned pumping stations and sewer mains? Funding Source: No funding is required. Recovery of costs for service is anticipated. Recommended Action: Motion to: Approve and authorize the Mayor and City Clerk to execute the Agreement for the Conveyance of Wastewater Between the City of Huntington Beach and Sunset Beach Sanitary District. Alternative Action(s): Do not approve the new agreement; allow the existing agreement to run its remaining term of 55 years without a specified cost recovery arrangement, and instruct staff on how to proceed. Anal: A new agreement between the City and Sunset Beach Sanitary District (SBSD)will adequately provide for the recovery of all costs associated with the conveyance of SBSD's sewage discharge. The agreement also specifies a Facilities Replacement Charge for the future replacement or reconstruction of the facilities used for the conveyance of wastewater from the community of Sunset Beach. 01-03T April 2 Webb(sunset Beach Sanitary) •2- 3122101 6:28 PM rim Y �J REQUEST FOR ACTION*.) MEETING DATE: APRIL 2, 2001 DEPARTMENT ID NUMBER:PW 01-037 BACKGROUND Since 1970, wastewater originating in Sunset Beach has been conveyed by the Sunset Beach Sanitary District (SBSD) to two sewer pump stations ("C" and "D") and gravity sewer lines located within the jurisdiction of and owned by the City of Huntington Beach, which is then conveyed through sewer trunk mains of the Orange County Sanitation District (OCSD) to treatment facilities owned by the County. Terms of this conveyance have been administered under an original agreement that set forth a term life of 55 years, which governs until year 2025. The original 1970 agreement established a maximum capacity of 250,000 gallons per day (gpd) to be conveyed to the City's collection system. The reimbursement to the City was set at $5.00 per million gallons of sewage flow. Through discussions and negotiations between the City and SBSD, this reimbursement cost rose to $16 per million gallons by 1984. It was generally acknowledged by all parties, that even at the 1984 rate, the City is not recovering the cost of wastewater conveyance for the community of Sunset Beach. In 1984, a supplemental agreement was approved by the City of Huntington Beach and the SBSD, which established a higher average capacity right of 350,000 gpd, with a maximum allowable peak flow of 580,000 gpd. The agreement also established new rates to be collected, beginning at the then current rate of$16 per million gallons, with annual adjustments that would increase to $60 per million gallons by June 30, 1988. With each fiscal year after that date, the amount would be adjusted upward or downward based upon increases or decreases in the City's operation and maintenance expenses "attributable to a change in its existing electrical utility rate as reflected in Southern California Edison Company's Schedule No. PA-1, effective October 9, 1983." In March 1991, an amendment to the 1984 agreement was approved to increase the billing rate to $73.09 per million gallons beginning with Fiscal Year 1989-90. The rate was to be adjusted each succeeding fiscal year based upon the Construction Cost Index as reported in the Fourth Quarterly "ENR Market Trends" Published by Engineering News-Record for the prior fiscal year. No provisions were made in the 1991 amendment for conveyance charges after June 30, 1995. Since 1995, SBSD has continued paying for conveyance of the wastewater at the existing rate under the terms of the old agreement, and is currently paid through the Fiscal Year 199711998. The SBSD Board, at its February 6, 2001 meeting, agreed to the terms and service charges of a supplemental agreement that modified the terms of the 1970 Agreement. Along with this, the SBSD Board also approved payments of service charges for the fiscal years of 1998/1999 ($10,303.62) and 199912000 ($15,698.44). These amounts are based on the terms of the existing agreement, and shall be remitted to the City of Huntington Beach within 60 days of execution of the new agreement. 01-037 April 2 Webb(Sunset Beach Sanitary) -3- 3122101 6:28 PM REQUEST FOR ACTION MEETING DATE: APRIL 2, 2001 DEPARTMENT ID NUMBER:PW 01-037 PROPOSED AGREEMENT SUMMARY Under the proposed new agreement, the Public Works Maintenance Division will prepare a cost breakdown at the end of each fiscal year for all costs to pump and convey the sanitary sewer flows from the community of Sunset Beach through facilities owned and operated by the City of Huntington Beach to the trunk sewer lines of Orange County Sanitation District . The report shall include costs for normal operation, maintenance and upkeep, and, will accompany the City's invoice to the SBSD. The amount invoiced to the SBSD is based upon the ratio of total flows that pass through the pump stations and the now generated by the Sunset Beach community. SBSD will pay the city for its proportionate share of all costs to operate and perform normal maintenance of the conveyance system. Also included in the invoice will be a Facilities Replacement Charge, an agreed-upon amortized cost of$12,310 per year for future improvement, removal, alteration, replacement and reconstruction of the existing facilities. The funds from the Facilities Replacement Charge will be retained in a special account designated for this purpose. Should the facilities be abandoned, removed or no longer needed to convey SBSD's wastewater, the unexpended facilities replacement funds shall be returned to the District. As established in the proposed new agreement, SBSD's proportionate share of the estimated average cost to the city is $250 per million gallons of wastewater conveyed. There are currently 1,178 sewered dwellings in the community of Sunset Beach. The estimated cost per dwelling under this new agreement will average an additional $2.00 per month, or$24 per year. The cost per dwelling for the 1999/2000 fiscal year was $1.11 per month, or$13.33 per year under the terms of the old agreement. Environmental Status: Not applicable Attachments): • . . Description 1 Agreement for the Conveyance of Wastewater with the Sunset Beach Sanitary District and the City of Huntington Beach 2 Resolution No.01-01 of the Board of Directors of the Sunset Beach Sanitary District RCA Author. David A. Webb,City Engineer 01-037 April 2 Webb(Sunset Beach Sanitary) .4- 03128/01 1:49 PM V v ATTACHMENT #1 AGREEMENT FOR THE CONVEYANCE OF WASTEWATER BETWEEN THE CITY OF HUNTINGTON BEACH AND SUNSET BEACH SANITARY DISTRICT This Agreement is entered into this end day of April , 2001 , by and between the CITY OF HUNTINGTON BEACH, a municipal corporation, hereinafter referred to as"CITY", and SUNSET BEACH SANITARY DISTRICT, hereinafter referred to as"SUNSET", a special district governed by the provisions of the Sanitary District Act of 1923, in recognition of the following matters: RECITALS A. WHEREAS, the CITY is empowered to enter into contracts for the conveyance of wastewater originating outside its boundaries and SUNSET is empowered to maintain and operate sewers and other sanitary disposal matters either in or out of SUNSET through joint powers agreements or through other means with any municipality. B. WHEREAS, on or about December 23, 1970, CITY and SUNSET entered into an agreement under terms of which CITY undertook to accept and transmit from SUNSErs wastewater collection system to the trunk wastewater lines of ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "DISTRICT", wastewater originating within the boundaries of SUNSET in the quantities and Under the terms and conditions therein set forth. Shortly thereafter, on or about January 13, 1971, CITY and DISTRICT entered into an agreement whereby DISTRICT undertook to accept, treat and discharge said wastewater in the quantities and under the terms and conditions therein set forth. C. Pursuant to the original December 23, 1970 Agreement, as modified by the May 7, 1984 Agreement, CITY and SUNSET agreed that it would be in the interest of all parties for SUNSET to contract directly with the CITY for the conveyance of wastewater through CITY's jmpXagme/seal beach/1212.00 t sewer system and to contract directly with the DISTRICT for its acceptance, treatment, and disposal of SUNSETs wastewater. D. Said May 7, 1984 Agreement between the CITY and SUNSET was amended on May 4, 1991 to adjust and amend the charges to be paid by SUNSET to CITY for the conveyance of wastewater through the CITY's sewer system. E. SUNSET has a continued need to provide for the discharge of wastewater, and a dispute has arisen between SUNSET and CITY with respect to the terms of said agreement. F. CITY and SUNSET desire hereby to compromise and settle the disputes heretofore referred to and to provide long term capacity in the CITY'S lines for wastewater originating within SUNSET. NOW, THEREFORE, CITY and SUNSET do agree as follows: 1. DEFINITIONS. As used in this Agreement the following terms shall have the meanings herein set forth: (a) Average Flow means the daily average discharge of wastewater during the fiscal year expressed as a rate of flow in million gallons per day, and shall be computed by dividing the total gallons discharged during the fiscal year by the number of days within such year. (b) Capacity Right means the right of SUNSET to deliver and the obligation of CITY to receive and convey to DISTRICT the stated flow of wastewater expressed in terms of average flow and peak flow. (c) Fiscal Year means the period between July 1 and the next succeeding June 30 inclusive, subject to slight modifications due to administrative and accounting procedures of the parties hereto. (d) Operation and Maintenance Costs means the actual costs incurred by CITY in a given fiscal year for or in connection with the operation, maintenance, upkeep, repair, improvement, alteration, renewal, replacement and reconstruction of the jmpWag escal bc2ch112112.100 2 facilities used for the conveyance of wastewater pursuant to this Agreement. Such costs shall include those relating to tools, equipment, labor, supplies, materials, appliances, power, fuel, engineering and inspection. Operation and maintenance costs shall be deemed to include overhead costs attributable to administrative and supervisory functions, but only to the extent that such costs are directly related to the services and facilities furnished to SUNSET by CITY pursuant to this Agreement. (e) Peak Flow means the maximum discharge of wastewater permitted under this Agreement for any 24-hour period. (f) Permitted Flow means the rate of flow set forth herein and is the maximum amount of wastewater flow which SUNSET has the right to discharge into the CITY's facilities under terms of this Agreement. Permitted flow is expressed as an average flow or a peak flow or as both. (g) Wastewater means the water carried wastes of the community derived from public, residential, commercial or industrial sources. 2. CAPACITY RIGHT (a) Obligation to Accept and Convey. As of the effective day of this Agreement, CITY grants to SUNSET a capacity right in its existing and expanded facilities. (b) Quantity,of Capacity Right. Said capacity right shall be an average flow of three hundred and fifty thousand gallons (350,000) per day and a peak flow of five hundred and eighty thousand gallons (580,000) per day. 3. POINT OF DELIVERY. CITY agrees to accept the flows set forth above from two points of connection at Warner Avenue within the territorial limits of the CITY, as more particularly described in Exhibit A hereto. jnTN'aVv0sm1 bcach/1Z112J00 3 4. FLOW MEASUREMENT. SUNSET shall maintain at its expense a flow meter and a recorder totalizer capable of measuring the quantities of wastewater discharged from SUNSETS wastewater system through the wastewater system of CITY SUNSET shall report the volume of wastewater contributed to the CITY's system as determined by the aforesaid meter totalizer. Such reports, showing a summary month by month for the entire term year, shall be made by SUNSET to CITY within 30 days of the end of the term year. In the absence of such agreement, such reports shall be made on or before the tenth (10'h)day of each month covering the preceding month. Said meter shall be subject to inspection and testing by CITY at its expense. 5. RIGHT TO FUTURE CAPACITY. Should the capacity right afforded to SUNSET by this Agreement prove in the future to be insufficient to meet the reasonable then present or anticipated needs of SUNSET, CITY shall provide added capacity to SUNSET to the extent that such additional capacity is available at the reasonable determination of CITY. To the extent that such capacity is unavailable but can be made available in the reasonable determination of CITY, SUNSET shall be responsible for all costs to achieve additional capacity. CITY and SUNSET shall negotiate a written amendment to reflect terms of added capacity and costs of construction to achieve added capacity. 6. CHARGES. Within 60 days of executing this Agreement, SUNSET shall pay to CITY, the following sums of monies for the respective fiscal years of conveyance of SUNSET's wastewater: For FY 1998/99 (July 1, 1998 through June 30, 1999) $10,303.62 ($82.84 x 124.3798 mgd—per old agreement) For FY 1990100 (July 1, 1999 through June 30. 2000) $15,698.44 ($127.54 x 123.0856 mgd—per old agreement) Commencing July 1,2000, SUNSET shall pay to CITY the portion of CITY's operation and maintenance expenses attributable to the facilities utilized by SUNSET pursuant to this jmpOOar.m'scal bcach112112,DO 4 Agreement that the average flow from SUNSET during the preceding fiscal year bears to the total average flow in said facilities. SUNSET shall submit to CITY on or before July 31 of each fiscal year the total flow for the previous fiscal year ending ,tune 30. On or before September 1 of each year CITY shall invoice SUNSET for their proportionate share of all costs from the prior fiscal year based upon its actual operation, maintenance, upkeep and repair expenses for the preceding fiscal year. The sum as determined above shall be paid by SUNSET to CITY within the period of 60 days of receipt of a statement therefore. 7. CAPITAL FACILITIES REPLACEMENT CHARGES. The CITY is desirous of establishing a Capital Facilities Replacement Fund for the replacement of the affected facilities so that the facilities can be replaced as necessary. It is mutually agreed that SUNSET shall contribute certain monies into said Fund based upon SUNSET's capacity allocation in said conveyance facilities. SUNSET agrees to pay to CITY an annual charge of$12,310.00 which shall be attributed to their proportionate shares of the capital replacement cost of the total value of SUNSET's capital cost for 350,000 gallons per day capacity in the CITY's conveyance facilities. The initial $12,310.00 to be paid by SUNSET to CITY to be placed in said FUND shall be paid concurrently with SUNSET's annual payment for Operational and Maintenance Costs as specified in paragraph 6 of this Agreement for the fiscal year ending .tune 30. 2001. In the event that the affected facilities are abandoned, replaced by facilities owned and operated by DISTRICT, or the ownership and operation of the affected facilities are assumed by DISTRICT which would not require CITY to replace these affected facilities, CITY shall refund all Capital Facilities Replacement monies paid by SUNSET to SUNSET. 8. DISPOSAL OF EXCESS WASTEWATERS. SUNSET agrees that in the event it discharges wastewater to the CITY's conveyance system in excess of the total annual flow based upon the average daily flow of 350,000 gallons per day, or as otherwise permitted by this Jmp agredwal beadd12112'00 5 V Agreement, SUNSET shall pay to CITY two (2) times the amount of the gallonage charge as determined in paragraph 6 above for all wastewater in excess of the permitted flow. 9. MAINTENANCE OF SEWER LINES. SUNSET agrees to continue its efforts,as far as is practicable, to reduce or eliminate surface waters and infiltration of ground waters into its sewerage system, except as allowed by prior approval of the City. In the event CITY determines or has reason to believe that SUNSET's system is failing to reasonably reduce or exclude surface or underground inflowfinfiltration, CITY reserves the right to require an inspection of the facilities owned and operated by SUNSET which are used for collection of wastewater within SUNSET's service area. Said inspection shall be at no cost to CITY. A report,with findings, shall be submitted to the City summarizing the results of the inspection. The CITY shall request needed corrections of the inflowrinfiltration in writing. 10. ACTS OF GOD. Neither party hereto shall be liable for failure to comply with the terms or conditions of this Agreement by reason of flood, fire, earthquake, or act of God, provided, that due diligence is exercised to repair or replace facilities damaged and to perform hereunder following such occurrence. CITY and SUNSET shall each pay their proportional share to the net cost of such replacement, based upon the capacity ratio Yield and used by each at such time. 11. RIGHT TO INSPECT. (a) SUNSET shall have the right at all reasonable times to inspect all records of CITY that pertain to its operation and maintenance expenses applicable to this Agreement. CITY shall,at the request of SUNSET, advise SUNSET of the manner in which CITY has determined the charges payable under Section 6 and the records that were used in making such determination. (b) CITY shall have the right at all reasonable times to inspect all records of SUNSET that pertain to its operation and maintenance expenses applicable to this Agreement. SUNSET shall, at the request of CITY, advise CITY of the jmr,00a¢rcdseal bea&'12.'12.W 6 manner in which SUNSET has determined the charges payable under Section 6 and the records that were used in making such determination. 12. INDEMNITY. CITY shall protect, defend, indemnify and hold harmless SUNSET, its officers, officials. employees and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation costs and fees of litigation of every nature)arising out of or in connection with performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the SUNSET. SUNSET shall protect, defend, indemnify and hold harmless CITY, its officers, officials, employees and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation costs and fees of litigation of every nature)arising out of or in connection with performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the CITY. 13. TERM. The term of this Agreement shall be 55 years from the effective date hereof. 14. -SETTLEMENT OF PAST DISPUTES AND TERMINATION OF PRIOR AGREEMENT. CITY and SUNSET enter into this Agreement in part in consideration of resolving all disputes which either may have against the other arising out of all prior agreements. In consideration of the covenants and conditions herein set forth. CITY releases SUNSET and SUNSET releases CITY from all claims, demand, or liability whatsoever arising out of prior agreements. Upon execution hereof, all prior agreements between CITY and SUNSET are terminated. jm;O)agredscal be2rh.+17113M 7 15. ASSIGNMENT. This Agreement shall not be assigned by either party hereto without the express written consent of the other party to this Agreement provided that such consent shall not unreasonably be withheld. 16. NOTICES. Any notice or special instructions required to be given in writing under this Agreement shall be given either by personal delivery to SUNSETs agent or to CITY's Director of Public Works as the situation shall warrant, or by enclosing the same in a sealed envelope, certified mail, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO CITY: TO SUNSET: Director of Public Works President of the Board of Directors City of Huntington Beach Sunset Beach Sanitary District 2000 Main Street P.O. Box 1185 Huntington Beach, CA 92648 Sunset Beach, CA 90742 17. MODIFICATION. No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 18. LEGAL SERVICES SUBCONTRACTING PROHIBITED. 'SUNSET and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. SUNSET understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by SUNSET. This Section 18 does not affect in any way the provisions contained in Section 12 of this Agreement. 19. ATTORNEYS FEES & ARBITRATION. In the event suit is brought by either party to enforce the terms and provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney fees. jmp00asree/seal beac1V12/12100 8 i In the event of a dispute regarding the interpretation or implementation of this Agreement or any rights or obligations hereunder, the issues in dispute shall be submitted to arbitration. (California Code of Civil Procedure, Part 3,Title 9, Section 1280 et seq.) For such purpose, an agreed arbitrator shall be selected, or in the absence of such agreement, each party shall select an arbitrator and the two arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure, Section 1283.05. The arbitrator, or three arbitrators acting as a board, shall take such evidence and make such investigations as deemed appropriate and shall render a written decision on the matter in question. The arbitrator/s shall decide each dispute and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be binding on both parties but subject to the judicial review for errors of fact or law in the Superior Court for the County of Orange. 20. PARTIAL INVALIDITY. Should any provision of this Agreement be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect unimpaired by the holding, so long as the reasonable expectations of the parties hereto are not materially impaired. 21. INTERPRETATION OF GOVERNING LAW. This Agreement shall be governed by and construed pursuant to the laws of the State of California. REST OF PAGE NOT USED jmpWaglscai bocW12!12,W 9 22. ENTIRETY. This Agreement contains the entire agreement between the parties respecting the subject matter of this Agreement and supercedes all prior understanding and agreements whether oral or in writing_ The foregoing sets forth the entire Agreement between the parties. IN WITNESS WHEREOF, the parties have executed this Agreement, consisting of ten (10) pages, including this page, on the dates set forth beside their respective signatures. SUNSET BEACH SANITARY DISTRICT, a CITY OF HUNTINGTON BEACH, a municipal corporation of the State of municipal corporation of the State of California California 7&&,p V, 4"' -qx � President M r ATTE ATTEST: :-:_ Se etary City Clerk APPROVE AS TO FORM: . 1-'"iCity Attorney INITIAT D APPROVED: Direct of Public or s REVIEWED AND At� R D: City Administrator iwq0)Psrrua1 Ivacht12.71-M 10 v v EXHIBIT A s City of nuntington Reach 12" Sanitary Sewer \ 6" CI Force Main (1936) Warner ` ~ ~ -- _ ._ Avenue 'Magnetic Flow Meter 6" PVC Force Alain (1998) --Sunset Beach Sanitary District Pump Station 41 Exhibit "A" Sunset Beach Sanitary District Conections to City Of Hntington Beach Sewer System v v ATTACHMENT #2 RESOLUTION NO.01-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUNSET BEACH SANITARY DISTRICT APPROVING A NEW AND REVISED AGREEMENT WITH THE CITY OF HUNTINGTON BEACH FOR THE CONVEYANCE OF WASTEWATER AND AUTHORIZING THE PRESIDENT AND SECRETARY OF THE BOARD TO EXECUTE THE NEW AND REVISED AGREEMENT The Sunset Beach Sanitary District and the City of Huntington Beach entered into an Agreement for the conveyance of the wastewaters from the Sanitary District through the City's sewer system to the treatment and disposal facilities of the Orange County Sanitation District in December, 1970. This original Agreement was modified in May, 1984 to reflect change conditions and to update the provisions contained in the original Agreement. Since the Sanitary District has a continuing need to transport their wastewaters to the treatment and disposal facilities of the Sanitation District, and a dispute has risen between the Sanitary District and the City,the two parties have agreed to settle the dispute and enter into a new Agreement. THEREFORE BE IT RESOLVED 1. The Board of Directors have carefully reviewed the proposed new conveyance Agreement,and 2. After careful review have agreed to the terms and conditions contained therein,and 3. Authorize the President of the Board and the Secretary of the Board to execute the new Agreement on the behalf of the Sanitary District. Passed this 8th day of February,2001 at the regular Board meeting YEAS NAYS < — c President of the Board "&'� a eeretary of the Board 1. The Board of Directors have carefully reviewed the terms and conditions of the proposed new Agreement with the City of Huntington Beach Fife Notes Office of the City Clerk Huntington Beach, California 04-1 A&b City of Huntington Beach P.O.Box 190-2000]Main Street Huntington Beach,California 92648 HUNTINGTON BEACH � ~" From the desk of. . Connie Brockway City Clerk . Telephone: (714) h6-5404 �------�- Fax: (714)374-1557 , Internet: www.ci.huntinglon-bea6.ca.ns ��07 tci-�, a4o IwJ r7h- .,5* 14- �r 0~ j-J lA"1,,-, ,ter-' ------ G S RCA 'kOUTING HEFT INITIATING DEPARTMENT: PUBLIC WORKS SUBJECT: Approve New Agreement With Sunset Beach Sanitary District COUNCIL MEETING DATE; Aril 2, 2001 RCA ATTACHMENTS STATUS Ordinance wlexhibits & legislative draft if applicable) Not Applicable Resolution wlexhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (wlexhibits if applicable) Si ned in full by the City Attome Attached Subleases, Third Party Agreements, etc. (App,roved as to form by City Attome Not Applicable Certificates of Insurance (Approved by the City Attome ) Not Applicable Financial Impact Statement Unbud et, over$5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report If applicable) Attached Commission, Board or Committee Report If applicat!e)___,_r Not Applicable Findin s/Conditions for Approval and/or Denial Not A licable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: