HomeMy WebLinkAbout15 - Agreement with the Laguna Beach County Water DistrictP0 m CITY OF
z NEWPORT BEACH
cl't City Council Staff Report
</ FO RN
June 14, 2016
Agenda Item No. 15
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: George Murdoch, Municipal Operations Director - 949-644-3011,
gmurdoch@newportbeachca.gov
PREPARED BY: Cynthia Owens, Administrative Manager,
cowens newportbeachca.gov
PHONE: 949-644-3057
TITLE: Agreement with the Laguna Beach County Water District
ABSTRACT:
The Laguna Beach County Water District (LBCWD) has received Orange County Water
District (OCWD) approval to extract 2,025 acre-feet of water annually from the Orange
County Water Basin. LBCWD has approached the City to assist in conveying the water
from Fountain Valley to Laguna Beach through the City's existing infrastructure. The
proposed conveyance of LBCWD water is in addition to the allowable water Newport
Beach can extract. LBCWD, through a separate agreement, will pay the OCWD for all
water received on their behalf.
The water supply shall be interruptible giving the City the priority to existing systems.
The Agreement (Attachment A) contains terms and conditions that include
reimbursement for all costs associated with pumping, treatment and transportation of
the water. LBCWD has agreed to pay the City a portion of the routine maintenance and
emergency repairs of the existing system. This includes any replacement or
rehabilitation of the system due to additional wear and tear. There are no modifications
or enhancements needed to the City's water system to convey this water. The existing
system is of adequate size to handle the additional water demand.
RECOMMENDATION:
a) Determine that the action is exempt from the California Environmental Quality Act
(CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines
because it will not result in a physical change to the environment, directly or
indirectly; and
b) Approve and authorize the execution of an Agreement between the City of Newport
Beach and the Laguna Beach County Water District for the provision of an
interruptible supply of potable water.
15-1
Agreement with the Laguna Beach County Water District
June 14, 2016
Page 2
FUNDING REQUIREMENTS:
Expenses associated with the Agreement will be invoiced to the Laguna Beach County
Water District. The current adopted budget for the Water Fund includes sufficient
funding for the services to be provided under the terms of the Agreement.
DISCUSSION:
Currently, LBCWD depends on import supplies from Northern California and Colorado
through the Municipal Water District of Orange County to provide water to their
customers. Groundwater supplies have become more dependable and using
groundwater has a regional benefit by making import supplies available to those without
this resource. New State Water Resources Control Board regulations require agencies
to certify water supply sources which escalates LBCWD's desire to extract groundwater.
The LBCWD has been pursuing their groundwater rights in the Santa Ana Water Basin
since the late 1980's. In January 2016, OCWD and LBCWD entered into an agreement
that allows LBCWD to pump 2,025 acre-feet annually from any location within OCWD
boundaries.
In order to move water from the basin to LBCWD they must work with an existing
groundwater producer or purchase land and drill a well. LBCWD has found that drilling a
new well would be difficult. Consequently, they have approached the City of Newport
Beach to convey water to them through the City's existing system. The City has a
physical interconnection with the LBCWD and City staff has determined that the existing
infrastructure has the ability to pump the additional groundwater without affecting the
City's ability to meet demands or extract the allowable amount of water from the basin.
The City's connection with LBCWD consists of a 30 -inch pipeline and metering structure
in Corona del Mar. This connection has been previously used to deliver water to
LBCWD in emergencies. During the occasional emergency supply conditions, staff has
found that there was no detrimental effect on water supply or pressure.
Proposed Agreement
The Agreement between the City of Newport Beach and the LBCWD is for the provision
of an interruptible supply of potable water. The relevant provisions of the Agreement
include, but are not limited to:
15-2
Agreement with the Laguna Beach County Water District
June 14, 2016
Page 3
• LBCWD will have no ownership rights to the facilities, system or operations;
• LBCWD will be limited to no more than four cubic feet per second flow from the
City's system;
• All costs for constructing and completing the connection between LBCWD and
the City's potable water system will be the sole responsibility of LBCWD;
• The potable water supplied by the City is considered to be an interruptible source
of water;
• LBCWD will reimburse the City an allocated portion of emergency repairs to the
wells, pump station, treatment system and pipelines that convey water pursuant
to the agreement. This allocation will be based on a percentage of water
delivered to the District through the wells, pipelines, pumping plants or treatment
systems;
• LBCWD will reimburse the City an allocated portion of the actual annual
maintenance and operation costs for the wells, pump station, treatment system
and pipelines that convey water pursuant to the agreement. This includes:
o Energy costs related to the production of groundwater
o Operation and maintenance costs associated with the water wells and
booster pump facilities
o Distribution and treatment costs
Additionally, the City will charge a 4 percent administrative fee to the total amount of the
invoice for any emergency repair or routine maintenance to recover the costs
associated with overseeing and managing the repair and maintenance of the system.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A - Agreement between City and LBCWD
15-3
ATTACHMENT A
AGREHMHIS T EIEI WBE N 1 H E
I41ki VK 1WL• LUNNNU tib n 1011
AN 0 11H E LAICIU N A BRAICIF CICIIJ NlY WAIIER 1a197RIC111
CONCHRI\ IN G TF 9 11RAN'IMIS91ON OF INTHRRU RIIULE WA1119R
AND RELAITH0 MATIIER:1
DATE D _, 2016
Alf -01, 4 L agpna Agra a ni art Ram. 9.2d.16
15-4
I ABL9 CIF CON 11EN IS
Rage
SIF TICLE I REC1111AL9; FINDINGS, DEIFIN 11 ION S; IN TON TION .................................. 2
Seatian1.1 Recitals...........................................................................................2
Seatian1.2 Finding..........................................................................................2
9eatian 1.3 Definitions ....................................................................................... 2
9eation 1.4 N o Own eusr ip in Cit o -I N ew a rl Beach Facilities .......................... 3
AF7ICIL 9 II FAICIIL1118S AN Cl ORBRA'DIGN S................................................................ 3
9ectior 2.1 Required Clannection Faailities: ❑esign, Construction
Con i ection in City Sys tem ..............................................................1
Section 2.2 Operation and MaintE r ante of Faa ilities......................................... 4
Section 2.3 Maintenance Costs........................................................................ �1
AR7ICILEI III PRO% 191ON OF WA119R, CON 1]17IONS AN 13 9URRLN ........................... 9
Section 3. 1 Delivery of Walen............................................................................. 9
Section 3.2 Flayment ilor VI ateii ❑e livened.......................................................... 9
ectEor 3.3 Deliveuy Amount,Dispute Resolution ............................................... 6
Section 3.4 0CW11 Clonditior s........................................................................... 6
Section 3.5 Waten Qualitti.................................................................................. 7
lection 3.6 Retention of filutl wity a nd System Res ponsibility ........................... 7
AR111CIL8 I� TORN OF AGREE MEIN T; EX`[E hSION; 7E RMIN ATION..........................7
cleclion z1.1 11e--n-m ofAloneernenl; Renewal.........................................................7
lectionX1.2-Menmination................................................................................... 7
`ection 4.3 Alatia ns and Closts Upon 11 - p ermination..............................................7
..,,_
AR111CL8 V G 19 E FAL RROVISION 9............................................................................ 7
lection9.1 1ndernnit ti................................................................................ ....... 8
lection 9.2 F art ial Invalidity............................................................................... 8
lection 9.3 Flecord keeping: Inspection of Record9......................................... 8
ection 5.4 �'--ILiaaessors and Assigns................................................................. 9
Section5.5 N otices............................................................................................ 9
Section5.6 Cllairn s.............................................................................................
9
E coon 5.7 Clam pliana a with all Lam................................................................
9
Saction 5.8 Cla Ip ions..........................................................................................
9
Sa ction 5.9 5ntine A, ueement............................................................................ 9
c a ction 5.10 lnterprelation.................................................................................
'10
Taction 5.11 Amendments................................................................................ '10
Section5.12 111 aria n...........................................................................................
'10
'--leation 5.13 Cloo enation and Executior
oil Docurn ents.................................... '10
'--leation 5.14 Bxhibils.........................................................................................
'10
Eleation5.'15 9ignatouies............ ...................
--............................................ _..'10
15-5
lection 9.16 0t iecution in Clounterparts..............................................................10
Section 9.'17 Intequated Contract........................................................................10
Section 9.'18 Con'llicts on Incon sistencies............................................................11
Sectlon 9.19 r-leveiiability......................................................... .......................... .I 1
Section 9.20 _Controllirig Law � nd Venue.. ......................................................... . 11
Section 9.21 N o Attorneys' Fees.........................................................................11
15-6
ACIREIBN Sh 11 BEIVIIE BN 7H E CIT) OF N BWPORII BEACH
AND THE LAGLNA BEACH COUNIN VIIATEIF I]IS IRIC7
QCIN C BRNIN G RF M ISICIN OF IN 11ERRLJ RTIBLB WATEIF
AN I] REILA] BCI N AT 7 E RS
This ACIRE SMSNI ("Agreemer t") is made and entered it to as of the day
of , 2016, k y ar d between CITN OF NEMIROFd7 BE AC F, a
Cali-lonnia mL nicipal carp ovation and char en city ("Clity"), and the LACK N A BEIACIF
COUNIIY VIIAIBR 1118TRICIII, an incovnoiated Coy r ty Waten ❑istriat and Special
District unden the Claliflovnia Water Clode Section 30( 00 eil seq. ("I]lslAcl"). I I e Clity
and tl a ❑istnlat are sometimes nelenned to in this Agreemer t indi\iid( ally as "Rarty," on
toglether as "Rarlies."
F BCITALS
WH E F EAS, the City is I1 e City oil N ewpori Heach; a nd
WH E REIAS, the Distnict is tl e L aguna Reach Clount)l Water District wl ich
provides potat la waten s envice to custom ens located within its ba undanies pursuant to
the pnovisions of E tate la+nr; and
WH E RHAS, the City owns and op enates certain n in eline facilities and
apn ( ri en ances fou I1 a tnansportation and delhia ny o-1 potable water witl in its water
service a nea; and
VI IF E REIAS, the ❑istria t desines to n novide -Ion an addition al soura a o1 potable
waten s 1.pply in order to meet its notable waten system demands morn 91101.rr dwaten
supply; and
AA IF ERE AS, tl a District has the night to puncha se L p to 2,025 acne la et of waten
horn the Clnang e County Water District ((ICIWD) pen )Iean and transport 'Ile water
puna I ased Inom CICIWD to tl a ❑istnict's s a rvice area; an cl
WHEREAS, the City has neviavied its system capacity and capability and has
determined that the Clity las available capacity within its waten tnanspa dation and
delivevy s)lstem, specifically its viellfield, to make available to the ❑istnict, under aerain
terms and conditions, up to 4.0 CIFS of groundwaten viaten through the existing
Nang n or ation and delivevJ1 facilities; and
WHE F BA'I, the Clity and the Distnict desine to enten into this Agneament
cc ncenn in g t1 a tnans n is s is n of gnoun dwater unden s pecilied team s an d cond itions and
nelated matte ns.
N OW, IF ERE FOREI, IN LIGH11 OF TH B FCIF BGOIN G F ECII11ALS AN 11 TH 0
TIORN S AN E1 CONDIIICIN S HE F BIN, 11HE RARTIES HURETO EM AGREE ACI
FOLLOWS:
I aguna Beach County Waten District Rage 1
15-7
p PIKIL9 I
RE11011AL11; FIN OIN CISI, 13EFIN ITIIONS; IN11EN 11ION
Sleclion -1.1 Feailals. The foiiec oing recitals are true and connect and aue
inaonponated henein by t1 is neilenence.
Section , .2 Findings. 7l a Clity has Eieviewed t1 a eAs lin gl wate ii a s pacity and
capability all its potable wateii system, specillically tl e well-Jeld ilacilities, and has
deteurn ined that theiiie is e)ia es s waten capacitJ1 in tl a -laailities to allow tl e Clity to enten
into an agneement with the Distnict to puoAde an intens ptible waten supply to tl a Distnict
upon tl a terms and condition s set - ori h henein.
Seclian ' .3 Defini-Bans. Lnless tl a context clearly otherwise neq uines, the
tenms delined in this Section shall, for all purposes of this Agneem ent, have the
meanings I enein specillied.
(a) "Agreement" means tl i9 Agneement between the City a] N&Ainor Eleach
and the LagLin a Beach Clounty Waten 111stnict Cloncenn in g Pnovision of Intenut ptible
Waten and Flelated N attens as it may be amended ilnom time to time.
(b) "City" means the City of l` evipor Beau .
(c) "City N anagen' means t1 e Clity Managen o1 the Clity of N eWn or Beach ou
his on her designs e(s).
(d) "CFS" means cubic 11eet per second, a meas titien ent of v+ia ten Niolt me.
(e) "Distnict° mean s the I aguna Elea ch County VI ater ❑istriat.
(1) "Connection" means t1 a point of connection k etween the Clonneation
Faailities CIM 1 and CIM 1A.
(g) "Connection Facilities" means tha se llacilities de s cnibed in E x1 it it M I eneto
(h) "CountJ1" means the Clounty of Onange, a politiaal subdivision oil the State
of California.
(i) "laesign Bngineen" means the pnopenly qualiified registered civil
enginaen(s), netained by tl e City PL nsuant to this Agneament, to desk n and prepare the
bid documents, constnuction plans and speai-licatia n s ibn the con stnuction a nd,lon
acquisition the Connection Facilities, a9 f irihen desanibed in 3eation 2.1 I eueol.
(j) "Facilities Oa its" means the costs of design, constnuction, installation and
completion oil t1 e Connection Facilities.
u
Laguna Beach COL my Waten Distnict Rage a
15-8
(k) "Metropolitan" means the Metrop(litan "later District ofl Soutl ein
Clali-lbnnia.
(I) "CICIV\I❑" ni eans the Change CIOLinty VI laten District spec is l waten district
onganiza d and existing p unsua it to State law.
(m) "S-1ate" m eans t1 a IrItate ofl Califlornia.
(o) "Wa teii CJriality" m eans tl a gLiality oll wata ii p iinsuan t to applicable Federal,
State and local enfloncement regulation s.
Inteii netatiari. Lnless the context otherviise indicates, words expressed in the
singrilar s l all include the plural, and vice versa and tl a use oil tl a neuter, masculine, or
-feminine gentler is floc conven ien ce on ly and shall k e deemed to m can and include the
neuter, masculine onfleminine genden, as appuap_riate. H eadingls ollarlicies and sections
ha nein and the table oil a ontents hereoil ane s olely -Ion convenience o-1 ne-lenence, do not
con stitute a p ar hereol a nd s I all not affect the meaning, construction oii eflect hereo-l.
All nellenences leiein to "ildicles," "Slections" and other sribdivisions are to be
connesponding Ari icles or subdivisions o-1 this Agreement; the maids "henein," "I ereal,"
"I ei ek y," °heneunden" and othe n \A a rds o-1 similar imp or refen to this Aglneement as a
whole and not to any padiculan Artialea, Saation or s bdivision tl eieal.
Seclian '1.4 Na Membership cin Ownemship in Clity Facili,lfes. It is the express
un densta riding oil the Rarties hereto that Linden the tennis of this Agnaement, t1 a Distnict
shall not be, an d s1 all not ba con s idered to be, an owner on m emk err in city facilities.
71 a Distnict s hall haria no nights on ownenship to or in the facilities, systern on operations
of the City exae pt as e>ipnessly agreed to herein.
AR11CIL9 II
FACIILII les AND ORI9RAI ION S
Eleclian 2A Re uired Clanneclian Facilillias; Elasi ri Clans'lnuction
Can nea_lian in (lily Syslem.
(a) All cost of making and completing any connection between the Clit)l's
system and the Distiiict's system s hall be tl a sole nespon s it ilit)l a nd liability of the
Distnict llhe Distnict shall reimt Lirse the City foil all costs of inspection of the
Connection Facilities and ott en aosts o -I aompletingl the conneation to the Clit)l's s}lstem.
71 a City ill all invoiae the Distnict on a bi-annual basis fon s Lich costs and, ill neques ted
by t1 e District, shall p novide near ori able (locums ntation to s Lipport such in voice(s ). The
City 91 all pa} l the amount o-1 the invoice to tl a Boand v+ it1 in fa r1 y Hive (45) dads o-1 the
invoice (late.
fleclian 2.2 Op__er_alian and Maintenance.
(a) A waten metening sti u(ItUre is included as p ar of tl e Connection Faa ilities
shall k e access it le to 9 a ern pfoyees ofl the 11istnict and the City upon sucl basis as the
Laguna Eeaal Count)l Waten District Fagle 3
15-9
❑istnict and the City shall agree. The City will ensure tf at the waten rn eter is tested
ai ecked ton accunacy on a periodic basis and not less often tf an f i -annually. All costs
of meten accunaay testing, venifiaation and an )l n ecessany nepains or adjustmer t(s) to
s(ich rn eteu made as a result of such testing shall be the sole responsibility and liabilit)l
of the ❑istnict.
(b) At all times dining the team of tf i. Flgneeme nt, tf a Distnict s I all maintain a
p olicy(les) oil g enenal liability it sunan ce (on equivalent selil-ir s unan ae) as vening the
apenation and maintenance of the Connection Facilities in a covered amount as
detera ined by the C it)1 room time to tiro e. 11 e Clity s hall, at all times, be cauried a: a
r amed insuned under s uch policy(ies). 11he Distnict shall pnovida tf e Clity with Vinitten
conlMrmation of such im unance and covenage -ion the City and shall pnomptly up (late
suer docllrnl entation wher even : uch policy(ies) o-1 insunanae ane nenewed on a1 anged.
(c) Failune o-1 the Distnict to abide and compl)l with the tenni s of thi, Irlection
sha II constitute gnounds -ion the termir ation afl this Agne( ment by the C ity.
Seclian 2.3 N aintenance Clasls.
(a) In additior to, and sepa nate morn, tf a cost: paid by tf e District to OCIVII❑
-ion nepler is I ment lees t1i a ❑i: tnict s hall be nespor sible fon payment to the City oil an
allocated porlion o-1 the total annual maintenance costs, which s f a II ina lu(le ondir any
nepair costs, oil all water well fa cilitie: , tnea tment an d distrit ution (well line) associated
with productior a guourdwaten. 11his flee will include actual enengly aasts to produce
gnoundviaten, operation and maintenance o1 waten well and boosten pure p facilities,
distnibution (well line OdM) and tneatment costs. Cost will f e detenrn in ed and charc ed
on a "gen acne fa ot" aggregate amount, f ased a n tf a percentage basis; of tf a total cost
to produce gnour dwaten. -11 a Distnict will als o be nes gonsible fon gaymer t to the Cllt�l of
an annual 4% aaministration fae.
As an examplle, ill the Chly's to:W annual cosi to pracuce, ilreat aria
disilr&ute gaiouric water kir a giv en FY was x ;1,000,040 foji 20,004 acre feed oil
j1pociucticin, in which 18,000 acne feed was produced for 1Ihe Cvli , and 2,000 acre
feeil was plroducea on beHalf of aloe Dis lrict tf,le "allocailed" cost faaunula is:
� 11,000,000120,000=j 50.00/acre-food,x 2,000 actie-feet = $'100,000 owes by the
Distdo.
Tile annual cos;l a 4% acminisflratkin glee will pie aadec, sucfl -1Ih&; in �Ihe
reilerencec example the totall amoun l owed i1fle Ciily would Be $104,000.00.
C Fixed noutine maintenance costs such as moton, purr p and othen
equip rnent neplacernent, viell nehabilita tion, and other facilit)l nepains, not associated with
the volume of wata n, sha 11 be cf anga d to the District at a prop or ion ate nate equal to the
percentage oil waten delivered.
Lagr n a 0each C o(inty Waten 11i9tnict Rage 4
15-10
11c] Flapains that ane not and inany repair cost: Men ti-liecI as maintenance costs
in this clection at ove are thos a repairs that result room damage or failune to M ails,
pipeline, , pumping plant, of tneatrnent : )Istems that conve)l water n Lrnsuant to tt is
agmement, and sl all be reimbursed by tt e Cistriat ba.ad on an alloaated peiaentage
amoUnt equal to tt e (lity's penaentage at waten delis a ned to Eli: tnict t1 nouglh t1 a wells,
pipeline,, pumping) plant, of tneatrnent ,)lstams that convey water punsuant to t1 is
agi a ement comp a red to tt e City's produatia n of wa ter. 711he lirst yea n's pa ncenta ge sr all
be aalatilated using a running monthly avenage. Each subsequent )lean the percentage
it all be aala(ilated annually.
Me Clitrl shall, if iegluested by the Listriat, provide supporting clocumentation lou
s(ich cost: for uniloneseen regains including calculated method llor establishing the
a Ila cated cost. ]]he Disti ict shall pay tt a amount o-1 the invoice to tl e Clity yr it[ in -brly-•
fide (41) days althe in�ia ice date.
As at emarnitllle, in the ever it that flile Ci:y it curse a $50,000 cast lice repair a
ca►ria51ea weM ilir a JhaJ car vents wateii pvrsuan l 11ci 11flis A51reemer t, at c a Ilrle dollar
annual a►nicuriil prncucec By iltle Ci:Y was 20,000 acme feed; and dile City c eAivered
2,000 acre fleet ilc the Disilricil unc eii this agreernien l� the ccist ii 1k called ilci the
Disi ficil for aiepairs isi:
2,000 acre -41 / 20,004 acre -ft A 10d = j1d%. 10% cif) $50,000 = $5,000 tc Me
paid 1}ly the Disilric+I foci riepairsi in ac diilio.r lia any am untsi ciwec u, n er siu11parts
(a] anc (fil.
(a) It a Rarties expnessly aglnee and acknowledge tt at payment o-1 such
alloaated costs of such rn ainten ante : [all not entitle the Llis trict to any ownenship rights,
Such allocated maintenanae aasts : tall be billed on an annual basis to tl e L istnict,
beginning with tl a yean in which this Agi a ement becomes eflective (such allocated
maintenance aosts shall be pionated lion tt a -Iirst year of the term I eieaI based on t1 e
effective (late oil this Agneement). -Rhe City 9 all, H uequested b)I the Disti ict, pua vide
sup por ingl documentation ibis sua l allocated maintenance costs with the invoice fan
sucl costs. T e Distnict st all pail the amount of the invoice to the City within for 71 -live
(� 5) clays of the imiaiae date. Failune of the Distnict to at ide and comply with the terms
of this cla ction shall con stitute glnoun ds ton the tenmination of tt is Aglneerr ent l )I the City.
ARTICLE III
RRO% 191CM CIF WAVER, CON 1111ION S AN 11 9U PRLY
9ecilian 1.1 Ek Ilveny cil Wailer.
(a) L pon cornpletion of the Cla nnection Facilities and appnoval o-1 tt e
constnuction and as mpletion theneof by tt e City, the City will mal,a potable waten
availat la to tt a ❑istriat at tt a Clonneatian tt rouc h the Connea tion Facilities upon tf e
tenms and as nditions set ibr t he nein. The water shall be glnoundwater and sut ject to
OCVI ❑ nenlenishment waten rates payable by tl e Cistnict to CICIWD, separate fnom this
Laguna Beach Clounty Water Distnict Page 5
15-11
agreement. The n aximurn clow of water tt nougl the Clonnection Facilities -ion delivery to
the Clit)I shall be 4.0 CF9.
(b) Flotabie waten passingl through the Clonneation Facilities shall be
consida ned to be delivened toff a Distnict at 1:1 a point of the Clonneatia n.
(c) 1111 such wata n delivenie s 1 eneunder shall be matened at the Connection
Faailities and the Distnict shall k e responsible ilor pa�ln ent oil a II water delivered undo
the terms of lection 3.2 heneo-1, N eters neadings s 1 all be taken on a monthly basis by
the Clity and -Il a readings pnomptly thereailter nepa nted in wniting to the Distriat,
(d) On a biannual basis, Clity and Clistriat shall submit a joint pnoduatia n
staten en -1 to OCWD on the amount of water pumped -Irom waten k asin and delivered to
Clity and ❑istniat.
(e) 1111 ler supplied undem 11he terms oil 11his Agne( mend shi II a1 all lime s
be considered -lo be an inlennuplible sounce of walen, inlernr p1ble al the Ci.ly's
sole discne-lion and 'Ihe Citly shall be en-lilled and empowered 'lo exencise suct
discretion as lar any such intennuplion(s). the Clity Manager on his designee at all,
veil en possible, rn ake a good -faith a flor to provide the Dig tnict with at least '12 hours
prion notice of an intennuption in the uAaten a�ia ilabilit) I and the anticipated duration oil-lhe
intennuption. In the event of an emergency that threatens healtl , wel-lane on sa-la ty on
othen cincurn stances beyond the contra I or (i)ipeciation oil tf e City, as determined by the
Clit)l, the Clit)l may internupt the flow oil waten at the Clonnection Faailities upon proNiision
of a shorten notice peniod, but stall endeavon io pnovide the Distriat vritl as meal
advance notia a of sua l discontinuation of waten service as may be -lea 9 ible un der the
cincumstances then e)flsting. the night of the Distnial lci receive wallen unden the
terms oil this Agreement are, and shall under all circumslances nemain,
subordinate tci 11he needs and water demands, including, but notl limited -lo, 11ciw
nequinemenls, of the City. The Clity Manager or his designee; shall notilly the ❑istniat
\Ail en seal intennup tion peniod enols and shall aoondinate with the ❑is l nict vela tive to the
nesumption of pioNiision oil waters senviae.
Section 3.2 Raymenl Ion Walen C e livered. Subject to 11:1 a provisions of t1 i9
Plgneement, tt e Distuict viill be responsible for payment of OCW❑'s neplenisl ment
a l anga s for all quan tines of wafer delivena d heneunder s object to the p nice, nates,
a las s ifiaation an d aon ditions v hick OOWD e9 to blis I es from time to time ion such water
and any agreement as betvr een OClll ❑ an d the ❑is tnict fon potable water delivenies .
Billing rate disputes shall t e nesolved by and between -the ❑istnict and OClll ❑.
Section 3.3 Delivery Amclunll I ispulle Rescifu-lion. lil any gluestion anises as
to tl a an ount o-1 viater delivered thnatigh the Clity's facilities to 11 a Distriat through the
Clonnection, then the ❑iiy and the Distuict agnee to rn eet and confer with each alher and
with OCPAD wii l in a reasonable tirna thenea-lte n -ion the purpose of nes ohiingl such
question, however, t1 a decision of the Clity Manager shall t e ilinal, as 1 etween the Clity
a nd the EN tnict, in delern ining 1:1 a ama unt of water delhiened to the ❑istnict.
I aguna Beach County Water District Rage 6
15-12
Slection 3.4 CICIM Clondit ions. the City accepts and agrees to aamply witl
each and all oil the applicable tenms, conditions and regulations oil OCWCI afilectingl
production o'l potable gnoundwater under the terms heneof as Inorn time to time
ame n ded.
Slectkin 3.5 Aaler QuaIV . TI e Clivi shall be responsible Ion the maintaining
Waten Quality testing and tnealment of waten delivened to tl a connection point and the
Clonneatia n Facilities. U pon negUest, City shall pnovide "aten ClUality testing piioae dune s
and nesults fa n waten delivened at conneation point. Distnict shall t e nesnonsible -Ion waten
quality testing and treatment o-1 waten fnom the connection point la Distnict's waten
system.
Slectian 3.6 Retenticin cit Authonity and System Respansibilil . No pary by
entening into tl is �lglneenrent nelinquisl es on transilers to any ofl the othen parties any of
its independent statutony on othen pa wens, nese onsibilities on obliglations nelative to the
provision al water service, administnation and en-loncement al water quality
nequineme nts, on openatia n of its via ter system on ilaa ilities. aach party l s l all nemain
nesnonsible -Ion compliance with all applicable State and fedenal law and neglulatony
nequineme nts with respect to its waten service and/on water s ) is tem on Iacilities.
AR7ICILO N
TORN OF AGp EON ON T; EXTE N SIION; HORN IN ATION
Sectian,e.'I perm all Agneement; Renewal.
(a) This Agneement shall beaome effective as of the date the Clannection
Faailities ane completed and placed in service piinsuant to the tenrns heneof. The tenm of
this Agiieement shall be in penpetuit)l subject to eanlie n ienmination pursuant to tl a terms
oil Section 4.2.
Slection 4.2 Terminailian. 8itf en Flarhl may terminate this Agneement upon
ninet)1 (9( ) (lays' priori written notiae to the otl en Flatly Anovided that all oil that Hady's
obligations and responsibilities under tf a term o-1 tl is Aglneement ane at such time
cu invent.
Slecticin � .3 Flatians and Closts U12an 7enminatian. Upon the tenminatia n al
this Agnea ment, the point o'l connection between the potable waten systems oil the
Ilistnict and the City nay be valved ofil, on sevened, as the Clity, in its sole discretion,
shall detenrnine and dinect. In ILich event, the Clit)l may necoven and salvage the waten
meter installed as par oil tl e Conne ction Facilities at its discnetia n. The cost(s) of sual
severance and related actions shall be the sole responsit ility and liability of the Clitrl.
Any costs incunned by tl a City as a nesult o-1 such final actions shall be invoiced to tf e
Distnict and the ❑istriat shall p omptly pay such imia iced amount(s).
n 1l IBM U
GONE RAL PROVISIIICIN 5
Laguna Beach Cla unty Wale n Distnict Rage 7
15-13
Seclion 5.11 Indemnily. Bach par71 to tf is Agneement (indemnitor) aglnees to
clelencl, indemniily and sane and hold harmless each and every ot1 en indemniton heneto
fnom anal and all claim, liability, lasses, on damages or damagles anising out o-1
indemniton's claimed sole negligence in perFonmance oil this Agneament. Such
indemnification shall include neasonable attorney's lees and reasonable enginaening
e)ipense in cunred in t1 a defe n se of the claim.
Each indemnita n acknowledges that in the negotiation of this Agneement it is
repnasentecl by an attonne)l. It is e)ipnessly undenstoa(I that t1 a pnovision lon
indemnilicatia n -ion a neason able a tto� n ey's flees in this Agreement does not constitute a
ge nenal pnovision fou necovery of attorney's lee: a: casts of suit as provided flon in
Calilonnia Civil Clode Section '17111.
The liability of any indemniton shall t e several only. In no event :[all any
indemniton be liable jointly to any other indemnitor or to any third penson on a ccount oil
t1 a act on omis sion on liat ility witha ut -lault oil any indemn iton.
In the clelens e on compromise of anal claim where the concunnen t active on
pa,,,, Ne neglliglence on the liabilit)I without 1lault 0-1 seveual indemn itons on thind parties is
alleged, each indemnitor again: t whom such claim is made shall be liable only loll those
costs of clelensa on darn ages which are attnitutable to pnopodionate liabilit)l ofl ILich
indemniton as suct may t e Lound by a court oil corn peten t jurisdiction on as agreed to by
the alairn ed against indemnitons in tt a event of a corn pnomi: a ofl a settlement of the
claim.
Ely receiving water s envice, tl a Distnict accepts and is deemed to have consented
to , uch conditions al pnessune and service as are provided at the Conne ction Facilities,
and as a condition of service l eieby agrees to hold the C ityl harmless from any
darn ages anis in out a low g nessune or I igh pressure aon ditions on in tennuptions of
service. llhe City shall not be Iia ble fon any damage to pens ons a n g nope riy as used in
any manner t y t1 e use of water beyond the Conneation Roint noxi for any damagle
resulting -from its lailune on inability to cleliven waten -Ion any length of time.
9e Ilion 5.2 Rar ial Invalidilti. III any part of this Agneament i, held to be Me gal
or unenlloncea ble k y a court of competent junisdiclion, the nern ainden of this Agneeme it
shall be given effect to the tulle: t extent new onably poi: it le.
Soclion 5.3 Recond Kee in : Ins ecfian of Recands. Each Rarity heneto
agrees to 1'eep and maintain Hull and accurate necorcls of billings, invoices and
payments rnade pursuant to the term : heneoil. Bach Rar y fur hen ag nees lo rnake s Lict
reconds available to t1 a other Ra rlies hereto during normal t usiness tour upon
nea: onable prig r notice. All such records st afl be kept and n aintained t y the
appnopiiate Par )l for a p eniod ofl not less than three (3) years aflen t1 a effective date ofl
such dacument(s).
Laguna aeach County Waten 111stnict Page 8
15-14
Seclicin 5.4 Suacesscins and Assigns. This Agneemant shall be binding upon
and inune to the k enefit al the success ons and assigns of the Rarties hera to. phis
Agreema nt may not t e assigned without the pnior minitten consent oil the off eii Har )l
I eneto, and any suet non-consen ted as s ign ment s t all be void.
Section 5.5 N(itice:. AIn)l notiaa, payment on instnurnent nequired on permitted
t )l this Agnea meet to be given on delivered to any parly ou othen person shall t e dea rn ed
to t a ve been na ceived when pensonally deliveiia (I a n upon da posit oil the same in the
U nited citates Rost Office neg is tened on a a rl ilied, p ostage peep aid, addnessed as hollows:
City: City o-1 N a \Ain or Beau t
Min icipal Operations E a par rn ent
100 Cir iia Cla n ter E nive
H.O. Box: 11168
Newport Eleach, CIA 92658
Distnict: Lagluna Beau[ Clount)l )platen District
309 5 llt ind St.
Lagi.ina Beaat , CFI 92651
Each party a ay change its addrass -Ion delivery of notice by delivering written
notiaa oil sucl change on add ness to the ather par ias wit) in ten (10) calendar days pnior
to 9Lich change.
f1ecilian 3.6 Cllaims. Distnict and Clity e>innessly agree that in addition to any
claims filing nequinements set for h in the Agreement, Distnict 9 all be required to file any
claim Elistnict may hwie against Clity in stiiict con-lonmance with the Cloveimment Claims
F at (Go11a nnment Coda sections 9 00 et s eq.).
Saction 3.7 Clcimpliance milh all Laws. Distnict stall, at its own cost and
expense, comply with all statutes, ondinanaes, neglulations and nequinements of all
governmental entities, including) fledenal, state, count)l on municipal, whetl er now in
florae or heneinaltan enacted. In addition, all )plonk prepared bbl Distnict st all confa nm to
applicat le City, county, state and federal laws, nula s, reglulation s and permit
nequinements and be s object to approval o-11:1 a Hnoject Administnaton and Clit)l.
Section 5.8 Cla pticins. The captions to ala ctions used l enein are -Ion
conven ience punpos a s only and aiie not par of this Aglneement.
Seclicin 5.9 9nlire Agneement. This Agreement contains the entire agreement
between the parties witt nesnect to the matters pnovidad -tan tenein and supensedes all
pnion agreements and negatiations between the panties with nespect io the sut ject
matte n o-1 tl is /Iglneea ent.
Laguna Eleach Clounty Waten 1Wtnict _ Page 9
15-15
Sectian 5.10 Inlerprellalicin.
(a) l I e Farties hE neto acknowledgle an d a gneE that eacl has been given the
oppoi tunity to indepenclently neview this Agneement with legal counsel, and/or has the
requisite experience and sop[ is tiaa tion to understand, intenpriet and agree to the
pa r1 iculan language of the pnovisions of the Ague ement.
(b) In the event of a contnovensy on dispute between the Flariies concerning
tl a pno\iisions [ a nein, tl is document shall be interpreted according to the provisions
hE nein a nd no pres umption 31 all arts a concerning tl a diiafltsman of such p novision.
Seclian 5.'11 Amendments. This Agreement mail be modilied on amended only
b)I a miritten document executed by bath District and City and approved as to fa nm by
the City Attonne)l.
:lec-lian 9.'12 Wainer. The llailure a any Rarty leneto to insist on comnIiance
within any oil the teiims , COVE nants oil conditions at t[ is Aglneement by any a ther party
heneto, sha II not l e deemed a vialven o-1 such terms, coven anis oil conclitia ns oil this
Agneement by s LIC[ otl en p ar y, nor shall a n y waiver cons titute a nelinquis [ ment o-1 a ny
ot[ en right or poweii floe all a r and other times.
11ecil ian '.1.'13 Caopera-1 tan and Bxecuil ian a•I Dacumen ils. The paries hereto
agnee to complete and execute any ilurthen a ii additional do cuments v+il icl mail be
neaessary to complete or fur he ii the teiirn s oil this Plgneement.
cleellian 9.14 9xhibils. The Hollowing exl ibits attached heneto ane inconponated
into tl is Aglneern ent b)l ne-lenence.
a7i[ ibit Desicniption
"A" Connection Facilities Desaniption
Section 5.'15 9ignalaries. The sign atonies hereto represent t[ at tl ey have
been appnapniatel)I authonized to enter into t1 is Agreement on be[ aIt afl t1 a par -hl fan
whom they sign,
Sacilion 5.16 Executian in Claunilerpi rs. This Agneement mail be e)iecuted in
coun tenparl s, eac[ oil which s1 all be cleemed an oniginal.
Section 5.'17 Iniemaled Clanlract. This 1I91neement represents tle dull and
comp Is to un (leiistan ding of eveny kind on n atuiie whatsoe ver t etween the pa ri ies l eneta ,
and all pue lire in ary negotiations and I agreements of w1 atsoeven kind on nature are
menged he nein. f o vent al agneement an implied covenant shall be l eld to vaii)l t[e
pica visions herein.
Laguna Beach C or my Waten Distnict Rage 10
15-16
9eclion 5.18 Qon111icis or Incans isl1c ncies. In tf a event thene ane any conlliat:
on inconsistencies between this Agreement and anal attachments attached heneto, the
teams olthis Agreement shall gm ie on.
9eclion 5.19 Sevenat ilil y. 1-1 any tenm on porion o-1 this �Iglneernent is held to be
inrialid, illegal, on otherwise unenforceable ty a court o-1 competent juuisdiction, the
nemain ing pnovi, is ns of tf is Agneern ent sha Il continue in lull -lonce and eflect.
9eclion 5.2( Ccintrcilling Law and X enue. I I e lavis of the E-Itaie oil Clalifounia
s I all govern this plgneeme nt and all mattens relating to it a nd any action buouglht relating
to this Agreement shall f e adjUdicated in a coLir al competent jurisdiction in the Cla unty
of Onange, State of Calilornia.
Section 5.21 Na Af lanneys' Fees. In the e�ient oil any dispute on legal action
arising unden tl H Agneement, ti a prevailing party shall not be entitled to attonneys' -lee s.
[SIGNATUR89 ON N EXT PAGE I
Laguna Beach Clounty Waten Dig tnict Rlage 'I 'l
15-17
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed the day and year first hereinabove written.
CITY OF NEWPORT BEACH, LAGUNA BEACH COUNTY WATER
a California municipal corporation DISTRICT,
a California special government district
Date: Date:
By:
Dave Kiff
City Manager
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:—6 • 1� I u
By:
Aaron C. Harp
City Attorney
ATTEST:
Date:
Leilani I. Brown
City Clerk
ATTACHMENTS:
By:
[name]
General Manager
APPROVED AS TO FORM:
Date:
By:
Name
Title
ATTEST:
Date:
By;
Name
Title
[END OF SIGNATURES]
Exhibit A: Connection Facilities Description
Laguna Beach County Water District Page 12
15-18
SXF 18111 A
CON N9CITION FpI01L11118."1 I]9SCRIF TION
Laguna 0each Clounty Waten Dishict Rage AI -'I
15-19