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HomeMy WebLinkAboutAgenda Bill 3.A 10/04/2004='t. • lu CITY'OF PETALUMA, CALIFORNIA AGENDA "ILL OCR' 4 � 200 Agenda Title :, Resolution Authorizing'the ,City Manager to Execute Meeting Date: I A'First,Amended Funding. Agreement With the Sonoma County October 4, 2004 Water Agency to Receive,Funding in the Amount of $2,197,913 in Support of the Phase 1 Recycled Water Pipeline Proj _Meeting Time X 3:00 PM ❑ 7:00 PM Category (check one) ,X Consent Calendar ❑ Public Hearing ❑ New Business ❑ Unfinished Business. ❑ .Presentation Department Director ContaefP&rson Phone Number Water Resources & Michael -Ban, P:E., Michael Ban, P.E. :778 -4487 Conservation ' Cost of Proposal This proposal, would provide additional outside Account Number funding to the project in the amount of $642,302, and would reduce 602 -460- 9995 -7112 the City's direct.costs for the project. Name of Fund: Amount`Budjeted /A Wastewater Enterprise Attachments to Agenda Packet Item Agenda Report Resolution Summary Statement The City completed the Phase 1 Recycled Water Pipeline Project in August 2004. This project involved installation .of. approxiriiately 19,000 feet of 20 diameter pipeline to convey secondary recycled water from the City's oxidation ponds to Rooster '�Run .Golf Course for turf irrigation. In the future this pipeline will be the'ba-ekbone for distributionof tertiary recycled water. In 2003, the City received $1,555,611 in funding for this project through the Water. Advisory Committee's LRT2 Water Conservation Program. - In 2004, the Water Advisory, Committee approved an additional amount of $642,302 in FY 04 -05, for a new total funding amount of $2,197,913. An amendment to the funding agreement with the Sonoma •County" Water. Agency is necessary to procure these funds. This agreement will provide over 62% of the funds for the p foj ect. Recommended City Council Action /,Suggested ,Motion City Management recommends that the 'City Council adopt the resolution authorizing the City Manager. to execute a first amended funding agreement with the Sonoma County Water Agency to receive funding in support of the Phase 1 Recycled Water Pipeline : Project. Re "e ed by Finance Director: Reviewed by Cif y Attorney oO4 Date: A rove . b City'Manager Date: Date: SP 2 To a ' ate: Revision #1 and' Date - File Code S: \water resources & Revised -: conservation \Wastewater \9995 \city councihoctober 4.- # 2004\scwa agenda cover.doc s xc:.File, 9995 110:5 AUTHORIZING THE CITY MANAGER TO_EXECUTE A FIRST AMENDED FUNDING AGREEMENT WITH THE SONOMA COUNTY WATER - AGENCY TO RECEIVE FUNDING IN THE AMOUNT OF $2,197,193 IN SUPPORT OF THE PHASE 1 RECYCLED WATER PIPELINE PROJECT PROJECT NO. 9995 WHEREAS, the Phase 1 Recycled Water Pipeline Project, Project No. 9995 ( "Project ") was completed in August 2004; and WHEREAS, the project involved the construction of approximately 19,000 feet of 20 -inch diameter pipeline to convey secondary recycled water from the City's oxidation ponds at 4400 Lakeville Highway to Rooster Run Golf Course; and WHEREAS, it is estimated that the annual amount of potable water saved by this project is equivalent to the annual amount of water used by over 900 households; and WHEREAS, this pipeline -will convey, secondary recycled water to Rooster Run Golf Course in the near term, and serve as the backbone of the City's urban recycled water program in the long term; and WHEREAS, in FY 03 -04 the City received $1,555;6.11 in funding from the LRT2 Water Conservation Program in support of this project through a funding agreement with the Sonoma County Water Agency, which was approved by the City Council in October 2003; and WHEREAS, in December 2003, the Water Advisory Committee approved an additional funding amount of $642,302 for FY 04 -05, for a total project funding aniount of $2,197,913; and WHEREAS, a first amended funding agreement with the Sonoma County Water Agency is necessary to procure the additional $642,302 in funds; NOW'BE IT RESOLVED by the Petaluma City Council that: • 1. The above recitals are true and correct and hereby declared to be findings of the City Council of the City of Petaluma. 2. The City Manager is hereby authorized and directed to execute a funding agreement with the Sonoma County Water Agency subject to the review and approval of the City Attorney. 3. This resolution shall become effective immediately. 4. All portions of this resolution are severable.. Should any individual component of this resolution be adjudged to be invalid and unenforceable by a body of competent, juri'sd'iction, then the remaining resolution portions shall be and continue in full force and effect, except as to those resolution portions that have been adjudged invalid. The City Council of the City of Petaluma hereby declares thatitwould have adopted this resolution and each section, subsection clause; sentence, phrase and other portion thereof, irrespective of the fact that one .of more section subsection, clause sentence, phrase or other portion may be held invalid or unconstitutional. • • CITY OF PETALUMA, CALIFORNIA OCTOBER 4, 2.004 AGENDA REPORT FOR RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE.X FIRST AMENDED FUNDING ACRE EMENT WITH THE 'SONOMA COUNTY WATER AGENCY TO RECEIVE FUNDING IN THE AMOUNT OF $2,197;913 IN SUPPORT OF THE PHASE 1 RECYCLED WATER PIPELINE PROJECT 1. EXECUTIVE SUMMARY The City completed the Phase 1 Recycled Water Pipeline Project in August 2004. This project involved installation of .approximately 19,000 feet of 20-inch diameter pipeline to convey secondary recycled water from the City's oxidation ponds to Rooster Run Golf Course for turf irrigation.. In the future this pipeline will be the backbone for distribution of tertiary recycled water. In 2003, the City received $1,555,611 in funding for this project through the Water Advisory Committee's LRT2 Water Conservation Program. In 2004, the Water Advisory Committee approved an additional amount of $642,302 for FY 04 -05, for a new total funding amount of $2,197,913. An amendment to the funding agreement with the Sonoma County Water Agency is necessary to procure these funds. This agreement will provide over.62% of the funds for the project. City Management recommends: that the City Council adopt the resolution authorizing the City Manager to execute a first amended funding agreement with the Sonoma County Water Agency to receive funding in support of the Phase 1 Recycled Water Pipeline Project. 2. BACKGROUND This project included construction of approximately 19,000 .feet of 20 -inch diameter pipeline to convey secondary recycled water from the City's oxidation ponds at 4400 Lakeville Highway to Rooster Run Golf Course. It is' estimated that the annual amount of potable water saved is equivalent to the annual amount of water used by over '900 households. This pipeline will convey secondary recycled water to Rooster Run Golf Course in the near term, and serve as the backbone of the City's urban recycled water program in the long term. The location of the pipeline is shown the attached figure. In accordance with the City Council direction provided on February 25, 2002, the Department of Water Resources and Conservation designed the Phase 1 Recycled Water Pipeline Project. The Notice Inviting Bids was issued on May 22, 2003. Bids were received and opened on July 3, 2003. On August 4, 2003, the City Council awarded the construction contract to TerraCon Pipelines, Inc., of Healdsburg, California. - On August 16, 2004, the Council accepted the completion of this project. Under the Water Agency Contractor's Local Supply/Recycled Water /Tier 2 Water Conservation Funding Program (LRT2 Program), the Water Agency Contractors are contributing $13 million SAwater resources & conservation \Wastewater \9995 \city councihoctober 4 - 2004\agenda report - firstamended scwa funding agreement.doc over a 10 -year period to fund water conservation measures, develop recycled water projects that offset potable water use, and develop standby local peak -month production capacity that reduces demand on the Agency's water transmission system. On October 11, 2002, the City submitted a request to the Water Advisory Committee (WAC) for $2,197,913 in funding for the Phase 1 project. On November 18, 2002, the WAC approved the City's request for funding, a portion of the Phase 1 Recycled Water Pipeline Project in the amount of $1,555,6.1.1 for FY 03 -04. This funding has been provided to the City. On December 1, 2003,_ the WAC approved Petaluma's request for an additional' $642,302 in funding for FY 04 -05. This additional funding is now available to the City. In. order to procure the funds for this project, the City must execute an amendment to its funding agreement (Agreement) with the Sonoma County Water Agency. A copy of the First Amended Agreement is provided in Attachment A. 3. ALTERNATIVES 1. Adopt :resolution authorizing the City Manager. to execute the first amended agreement with the Sonoma. County Water Agency in support of the Phase 1 Recycled Water Pipeline Project. 2. Take other action as directed by the City Council. 3. Take no action. 4: FINANCIAL_ IMPACTS • As shown on August 16, 2004, when the City Council accepted completion of the project, the estimated total cost of the project is $3;535,000. This is illustrated in Table 1. Table 1 Estimated Total Project Cost Item Cost Construction $2,700,000 Engineering 360,000 Administration/Construction Management /Inspection/Testing 340,000 General Fund Overhead 135,000 Total. Cost $3,535,000 Approving the resolution will qualify the City to receive an additional $642,302 in, funding, for a total funding amount of $2,197,913,, which constitutes over 62 1 1/0 of the total project cost. 0 2 SAwater'resources & conservation \Wastewater \9995 \city councihoctober 4 - 2004\agenda report - first amended scwa funding agreement.doc 5. CONCLUSION Approving the resolution will allow the City to procure additional funds in support of the Phase 1 Recycled Water Pipeline Project: ' Once the City Council approves the resolution, the Agreement will be considered by. the Sonoma County Board of Supervisors (Board). Upon approval of the Board, the Agreement will, be executed and the City can begin submitting invoices for project expenditures. 6. OUTCOMES OR PEREORMAN.CE MEASUREMENTS THAT WILL .IDENTIFY SUCCESS OR COMPLETION: Additional funding for the project. 7. RECOMMENDATION City Management recommends the City Council adopt the resolution authorizing the City Manager to execute an amended funding agreement with the Sonoma County Water Agency to receive funding in support of the Phase l Recycled Water Pipeline Project. 3 S: \water resources & conservation \Wastewater \9995 \city.councihocto6er 4 - 2004\agenda report first amended sewa funding agreement.doc c ATTACHMENTA FIRST AMENDED FUNDING AGREEMENT 2 S \water resources & conservation\ Wastewater \9995 \citycounciNctober 4 - 2004\agenda report - ;first;amended scwa funding.agreement.doc V rik ltr s3scwaLpclrs31u 1techwlagremnts\p4b nf- wc- watedlwc fntl Ir12- petaluma first amended.doc version: :8/31 12004 4 1:18 AM TW 03/04 -02A FIRST AMENDED AGREEMENT FOR FUNblNG OF CITY "OF PETALUMA'S RECYCLED WATER. PROJECT (LRT2 PROGRAM) This Agreement (s between the Sonoma County Watet. Agency,,. a, body corporate and politic of the State of California (hereinafter "Agency), and City of Petaluma (hereinafter "City" ). RECITALS,` A. Agency and City first entered`mto this agreement on .Oct6ber30 2003 B. Agency and C share the goal of promoting cost = effective water conservation measures, recycled water projects that offset:potable water use, and °standby local peak- month production capacity projects that reduce peak: demand on the Agency's water transmission system: C. Pursuant to the provisions of 86ctiohi 2.5 of the Eleventh . Amended Agreement for Water Supply and Section 5(a) of the Vlemorantlum of Understanding . Regarding Water ' Transmission System Capacity Allocation . During Temporary Impairment, the Agency may' undertake or fund any cost - effective water conservation measure `that will reduce water: demands on the Agency's transmission system and that has been approved by the Water Advisory Committee: �D. Under the Local Supply /,Recycled_Water/Tier 2'Water Conservation Funding Program ;(LRT2 Program), the Agency plans to appropriate and distributefunds to the waterl contractors for:-implementing water conservation measures, developing recycled water projects that offset potable water use developing standby local , and peak -month production Capacity that.reduces de mand on the.:Agency's viat2r1ransmission system. E: .City intends to construct a pipeline to convey recycled' water to Rooster" Run Golf Course (Project). Upon completion ofahe Project, the pipeline'will save 11;0, million gallons of'potable`wafer annually. F. The Project will retluce impacts on t_he Agency's °water transmission system by delivering high- quality recycled water for irrigating the turf and, landscape plants at the Rooster Run Golf Course and reducing peak demands on the Agency's water transmission' system'. previously agreed to fund the Project G. The Agency tin the amount of $1;555;611, as approved by the Water Advisory Committee on November 18, 2002; H. On December 1, 2003, the Water Advisory Comm ittee and City is requesting additional funding for a portion of the construction, T2 Progra of its Project under the LRT2 in the amount of $642,302. Funding is available from allocation in the category of "Recycled Water Use, .'Program," within the Agency's Water Transmission :System fund ( Account No. 675108; 7277) of the 2003/2004 budget. I. City owns or will acquire, and is willing t6 retain Ownership of, any property or easements, Wherein said Project .. will be constructed and is willing to operate and maintain said::Project,in J. Agency and City do mutually' desire 'to .partially fund the construction .of said. Project. K. Agency and Citywish Ito ,expedite construction of said Project. L. This Amended Agreement supersedes all previous agreements. AGREEMENT City and Agency agree`as follows:. First Amended Agreement for Funding of City of Petaluma's'Recycled Water Project (LRT2 Program) 1 r� 1. RECITALS The above recitals are true and correct. 2. COORDINATION' City shall coordinate the work with the Agency's Project Manager; Lynn Hulme (phone::707- 547 -1909; fax: 707 -524 3782). City's contact shall 'be- Mike Ban, Project' Manager (address: 11 .English Street Petaluma; CA ,94952 phone: 707- 778 -448T fax: 707-776- 3635). 3. CITY'S RESPONSIBILITIES City'shall complete'the 'following its.cost and expense, except to the' extent.of'Age'ncy funding provided for ,in Section 4 `6616m, ' A. Environmental, Documentation City shall be the Lead Agency for the Project under requirements of the California Environmental.'Quality' Act (CEQA) and shall prepare all appropriate environmental documents. ;City shall, provide a :copy -of °the draft environmental document to Agency during public review process and a final.copyvithin 30 calendar days of approval of the document. B:` Permits City shall obtain any permits that may be necessary from.: ut(lifies or regulatory''agencies for construction: of the Project. . C. . Right -of Way City shall .acquire 'any and all additional land or easements; as necessary for the construction, of the Project. D. - Design a nd Surveying City shall design .the ' Project including all design surveying 'and construction staking; E. Final Plans and Specifications City shall prepare and, provide Agency with a final complete set of all PProject'consfruction documents. F.. insurance 'and. Indemnification City shall require its, contractor to, insure a-ntl in the Agency using: the anguage identified in Attachment A .asp the language for. Agency insurance and indemnification requirements in'the Bidding,Documents and shall provide evitlence.of such insurance.• and indemnification to Agency an a form satisfactory. to .Agency: Attachment A is an integral, part of this Agreement: - G. , 'City shall let Projectto bid H. Award City;shall award construction; contract to the lowest responsive'and responsible bidder unless .circu_mstances�6xist °that would. prevent.such award. 1. Contract.Adriministration City shall,adninister the contract forconsfruct(on of the Project: J. Inspection 'City shall inspect the'Proiecf: K. Notice of Completion and Record Drawings City shall file, the Notice of Completion and provide a copy to Agency within 30. calendar ?days of Its filing. City shall prepare record drawings showing any changes, deletions, or additions to the Project and provide a reproducible set; to Agency within 45 c"alendar days.of�f ling'the Notico,•of�Coinpletion. L. Title All'title'to all, Project facilities constructed,pursuant to this Agreement shali with'tlie City. M. ' Operations and Maintenance City shall accept, ownership , and shall operate and' Project in perpetuity. N Records City shall hr ainfain complete and accurate records of all transactions „in , compliance with generally accepted accounting principles for enterprise accounting, as promulgated by the J'nstitute of Certified Public the Governmental Accounting;.Standardv Board. Such records shall be available,to .Agency at alf reasonable times for inspection and `analysis: sts Within 609 a s Y' filing Notice of 'Cornpietion `City shall. 9 ubm I to, Agency a' Y O ,statement of compete accounting of Cit s Project costs for construction including change,orders: P. ' Summary Report Within. 60 ,calendar .days of completion of construction. of the Project, City shall provid& Agency with, a written'repoit'summarizing how the completed Project•will ,reduce demands on the Apriby's "water transmission system. Q. Indemnification City agrees to. defend, indemnify, hold harmless, a nd release Agency, its officers agent's,,: and, employees, from and against any, and all actions; ;claims,, damages; liabilities, or expenses that•may be asserted by any person 'or entity, including City, arising out of or in connection First Amended'Agreement for Funding of City of Petaluma's Recycled Water Project (LRT2 Program) 2 with the making, :of•this Agreement or with the performance of City hereunder, excluding liability due to the sole active. negligence or willful misconduct of Agency., 'This indemnification obligation is not • limited in any way by.any limitation on: the amount ortype of damages orcompensation payable . to or for or its agents under workers' compensation, acts, disability benefits acts, or other employee benefit acts: In addition, City shall be, liable to.Agency for any loss or damage to Agency property. arising from -or in connection with City's performance hereunder. R. Invoices City shall invoice the Agency for construction expenses All invoices submitted to Agency by City shall. include an itemization of expenditures identifying specific construction costs and a narrative. describing the. progress made on the; Project during the. invoice period. All invoicesshall be clearly: marked with "City of Petaluma, Funding of Recycled Water Project (LRT2 Program), Project./Task No. 3944 -03 and Account No. 675108 - 7277 4.. . AGENCY'S RESPONSIBILITIES A A gency re imburse. r -C Cit r foci n--Co UPon execution of this.Agreement and receipt of an invoice, 9 Y u costs incurred to date for the Project, as authorized herein and as approved by Agency's Project Manager. Monthly thereafter, upon receipt of invoices thereof, and as approved by Agency's- Project 'Manager, Agency will reimburse City for any additional construction costs, 'including change orders, incurred for the Project up to a total amount of $2.197:913 B. Total Total ',paid to City by Agency for this Project shall. not exceed $2,197,913 & ADDITIONAL REQUIREMENTS A. Excess Costs City shall fund all Project costs in excess of $2,197,913. B. Authority to Amend Aareement The ..Agency's General Manager /Chief Engineer and the City's City Manager are authorized to execute amendments that do not increase the amount of funding and do not substantially change the scopeof the Agreement. ' C. • Proiect Not Completed If City does not complete. Project, then -City shall return to Agency all funds received by City from Agency under this Agreement, 'within 60 days of the date City abandons the Project. D.- No Waiver of Breach The waiver by Agency or,. City of any breach of any term or promise contained in this Agreement shall not. be deemed to be a waiver of such. term or promise or any subsequent breach of the same or any other term or promise contained in. this -Agreement. E. Construction To the. fullest extent allowed by Aaw, the provisions.,of. this Agreement shall be construed and given-effect in a,manner that avoids any violation of statute, ordinance, regulation, or law. The parties covenant and agree that in the. event that any; provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full .force and effect'and shall in no.way be affected, impaired, or invalidated thereby. City and Agency acknowledge that they have each contributed to the making of this Agreement and . that, in the event of a dispute .over the interpretation of this Agreement,, the language of the Agreement will not be construed against one party in 'favor of the other. City and&' Agency. .acknowledge that they. have each had an adequate opportunity to. consult with counsel in the negotiation and preparation: of this'Agreement. . F. No Third -Party Beneficiaries Nothing contained in this Agreement shall be construed to create.and the parties do not intend to create any rights in third parties. G. Applicable Law and Forum This Agreement; shall be construed and interpreted according' to 'the substantive .law of California excluding the law of conflicts. Any action to enforce the terms of. this Agreement for the breach thereof shall be brought and tried in the County of Sonoma. H. Captions The captions in this Agreement are solely -for convenience of reference. They are not a part of this Agreement and shall have no effect on its construction or. interpretation.. I.; Merge r : This writing is intended both as the final expression of the agreement between the parties hereto -with respect to the included terms and as a complete exclusive statement of the terms of the Agreement, to Code of Civil Procedure Section 1856. No modification of this Agreement shall be effective unless and until such modification is evidenced by a writing signed by both parties. First Amended Agreement for Funding of City of Petaluma's Recycled Water Project (LRT2 Program) ' . 3 IN WITNESS WHEREOF, the.parties have executed this. Agreement as set forth below. Reviewed as to substance by Agency; Department Head Reviewed as to funds by Agency:. Division Manager - Administrative Services Reviewed as to form by County Counsel County Counsel CITY OF PETALUMA By: Michael Bierman, City Manager . SONOMA COUNTY WATER AGENCY By: Chair, Board of Directors Date: Attest: County Clerk and .ex- officio Clerk of the Board of 'Directors First Amended Agreement for Funding of City of Petaluma's Recycled Water Project (LRT2 Program) fj i ATTACHMENT A WORDING. FOR CONSTRUCTION CONTRACT INDEMNIFICATION Contractor, agrees to accept all. responsibility for loss or dama9e to. any person or entity, and to defend, indemnify, hold harmless and release Sonoma County .Water Agency, its . .officers, agents, and employees, from and against any and all actions, claims,_ damages; liabilities, or expenses that may be asserted by 'any, person or entity, -including Contractor, arising out of or. in connection with the performance. of Contractor hereunder, whether .or not there is concurrent negligence. on the part of Sonoma County Water Agency but excluding liability due to the; sole active negligence or sole, willful misconduct of Sonoma County WaterAgency. This'ihdemn_ification obligation is not limited in any way by. any limitation on the amount or type of. damages or compensation, payable to nor for Contractor or its agents under Workers'. Compensation acts, disability benefit acts, or other employee benefit acts. . INSURANCE The Contractor. shall obtain insurance acceptable to City of Petaluma from a company or' companies acceptable to the City. The required documentation of such - insurance shall be furnished to the City at the time Contractor returns the executed contract. The proper insurance shall be provided within ten (10) calendar days,after,the bidder has.receved the notice that thecontract has, been awarded and prior to the City executing the contract and issuing a notice to proceed.. The Contractor shall not commence work nor shall he allow his employees or subcontractors or anyone to commence work until alLinsurance required hereunder has been submitted and.approved and'a °notice to proceed has been issued. • With respect. to performance'of work under. this contract, Contractor shall maintain and shall require.all of its subcontractors to maintain insurance as described below: A. Workers' Compensation Insurance with statutory limits as required by the Labor Code of the State of California. Said policy, shall be endorsed with the following specific language: . This policy shall not be canceled or materially changed without first thirty (30) .days prior written notice to the Sonoma County Water Agency. B. Commercial General Liability insurance.covering bodily injury and property damage utilizing an occurrence policy form, in'an amount no less than $1,000,000 combined single limit for each occurrence. Said commercial general liability insurance policy shall, either be; endorsed with the following specific.language or contain equivalent language in the policy: 9. The Sonoma County Water Agency, its officers, agents, and.employees, are named as additional insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this contract. 2. The inclusion of more than one insured shall not operate to impair the rights of one insured against another insured, and the coverage afforded shall 'apply as though separate policies. had been issued to each insured, but the inclusion of more than one insured shall not operate to increase the - limits° of the company's liability.. . . 3. The insurance provided herein is primary coverage to the Sonoma County Water Agency i with respect to any insurance or self - insurance programs .maintained by the Sonoma County Water Agency. 4. This policy shall not be canceled or changed without first giving thirty (30) days priorwritten'notice to the Sonoma County Water Agency. First Amended Agreement for Funding of City of Petaluma's Recycled Water Project (LRT2 Program) A -1 C. Automobile Liability 'Insurance covering bodily injury and property damage in an amount no less than $1;000,000 combined single limit for each occurrence. Said insurance shall include coverage for .owned, hired, and non -owned vehicles. Said policy shall be endorsed with the• following language: This policy shall not be canceled or materially changed without first giving thirty.(30) days prior written notice to the Sonoma County Water Agency. • �l • • 1 SAwater resources & conservation \Wastewater \9995 \city council \october 4 - 2004\agenda report: - first amended scwa funding agreement.doc <r .