HomeMy WebLinkAboutC-2756 - Inspection and Testing of Seawater Desalination pipelineCIh '!::, .h`I CST HACi
JUN 2 6 1989 June 26, 1989
APPROVED City Council
Agenda ItemF_3(b)
TO: MAYOR STRAUSS AND MEMBERS OF THE CITY COUNCIL
From: Robert J. Dixon, Utilities Director
SUBJECT: AGREEMENT FOR INSPECTION AND TESTING OF
ORANGE COUNTY WATER DISTRICT (OCWD) SEAWATER
DESALINATION PIPELINE
Recommendation: If desired, approve an agreement between the City and the
Orange County Water District (OCWD) to allow the City to inspect and test
the capacity of the District's existing pipeline.
Background: The City of Newport Beach is a member of the OCWD. The City
Council authorized the City's membership in order to provide the City with
an additional source of water other than that provided by the Metropolitan
Water District. As a member the City has the right to pump water from the
underground basin through the use of water wells.
Due to seawater intrusion, the placement of water wells within the political
boundaries of the City of Newport Beach is impossible. The City has
investigated a number of sites within the County and the most promising are
located in Mile Square Regional Park. This remote location, requires a water
transmission pipeline. The cost of constructing a pipeline from Fountain
Valley to the City would be substantial. As an alternate, the City working
with the staff of OCWD is considering the use of OCWD's abandoned
desalination pipe line that runs from Ward and Ellis streets in Fountain
Valley to the Edison power plant in Huntington Beach.
As this line has been out of service for almost two decades, the City has
requested the right to inspect and test the line before discussing an agreement
for its use with OCWD. The attached Agreement provides for such
inspection and testing. It was unanimously approved by the Board of
Directors of OCWD on May 31, 1989. The Agreement was reviewed and
approved for submission to the City Council by the Water Committee at its
meeting on June 12, 1989.
Respectfully submitted,
Robert J. Dixon
Utilities Director
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AGREEMENT
FOR
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INSPECTION AND TESTING OF
THE SEAWATER DESALINATION PIPELINE
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THIS AGREEMENT is made and entered into this 31, s day of
May 1989, by and between the Orange County Water D1strlCt,
created by a Special Act of the California State Legislature in
1933, hereinafter referred to as OCWD, and the City of Newport
Beach, a municipal Corporation, hereinafter referred to as CITY.
WITNESSETH:
WHEREAS, THE CITY has plans for a groundwater development
project to construct extraction wells in the vicinity of Mile
Square Park in Fountain Valley and transport water to its service
area within the boundaries of OCWD (the "Project "); and,
WHEREAS, CITY, as operator of the project, must utilize
water transmission facilities for conveying produced water to the
CITY's reservoir at 16th Street and Monrovia Avenue in the City
of Newport Beach; and,
WHEREAS, OCWD owns an existing unused, 30 -inch diameter
seawater pipeline running between the OCWD Water Factory 21 and
the Southern California Edison Company power generating plant in
Huntington Beach adjacent to Pacific Coast Highway (the
"Pipeline "); and,
WHEREAS, OCWD does not presently require the use of the 30-
inch seawater pipeline; and,
WHEREAS, Pipeline is so located that portions could be
utilized by CITY as a transmission pipeline for water produced
from the "Project "; and,
WHEREAS, in order to determine the feasibility of the City's
use of the Pipeline for the Project, the parties mutually agree
that the City shall undertake an investigation as hereinafter set
forth;
EXECUTORY AGREEMENTS
NOW THEREFORE, in consideration of the facts recited above
and the covenants, conditions and promises contained herein, the
parties hereto do agree as follows:
SECTION ONE: PIPELINE INSPECTION AND TESTING
1.1 CITY shall review the existing as -built
construction plans for the Pipeline and shall prepare a testing
plan which will include interior and exterior visual inspection,
and pressure testing of the Pipeline. CITY shall submit such
testing plan to OCWD for review.
1.2 All inspection and testing of the Pipeline shall
be accomplished at CITY expense using CITY personnel or
contractor labor.
1.3 At all times during the Pipeline testing and
inspection operations, the CITY shall permit authorized
representatives of OCWD access to observe and inspect the testing
methods and procedures.
1.4 CITY shall be solely responsible for obtaining all
permits and approvals appurtenant to and required for the testing
of the Pipeline.
1.5 Unless otherwise approved by OCWD, CITY shall
restore the Pipeline to its original, pretest condition upon
completion of Pipeline test.
1.6 Upon completion of the Pipeline testing, CITY
shall make a copy of the test results report available to OCWD.
SECTION TWO: TIME OF COMPLETION
2.1 CITY shall complete all Pipeline inspection and
testing and appurtenant work under this agreement within one
hundred eighty (180) calendar days from the date of the execution
of this agreement.
SECTION THREE: INSURANCE
3.1 CITY shall require that each contractor involved
in the testing of the Pipeline shall provide liability insurance
coverage in the amount set forth herein below, and shall furnish
certificates evidencing such insurance to both CITY and OCWD.
OCWD and CITY together with their respective officers, employees,
boards, committees, councils and representatives, shall be named
as additional insureds on each policy of insurance.
3.2 On or before commencement of work pursuant to this
Agreement, CITY's contractor(s) shall furnish OCWD with
certificates showing the type, amount, class of operations
covered, effective dates and dates of expiration of insurance
policies. Such certificates shall also contain substantially the
following statement: "The insurance covered by this certificate
may not be canceled or materially altered, except after ten (10)
days' written notice has been received by OCWD and CITY."
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3.3 CITY's contractor(s) shall maintain in force at
all times during the performance of this Agreement, policies of
insurance required by this Agreement; and said policies of
insurance shall be secured from an insurance company assigned
Policyholders' Rating of "B" (or higher) and Financial Size
Category XV (or larger) in accordance with an industry -wide
standard and shall be licensed to do business in the State of
California.
3.3.1 An appropriate industry -wide insurance
rating standard shall be deemed "BEST'S KEY RATING GUIDE ", latest
edition.
3.3.2 CITY's contractor(s) shall maintain the
following minimum insurance coverages:
Liability Insurance
General liability coverage shall be provided in the
following minimum limits:
Category
Bodily Injury
Property Damage
Amount
$250,000 each person
$250,000 each occurrence
$500,000 aggregate
$250,000 each occurrence
$500,000 aggregate
3.3.3 A combined single limit policy with
aggregate limits in the amount of $1,000,000 will be considered
equivalent to the required minimum limits.
3.4 Subrogation Waiver
In the event of loss or claim of loss due to any
of the perils for which it has agreed to provide insurance,
CITY's contractor(s) shall look solely to its insurance for
recovery. CITY's contractor(s) hereby grant to CITY and OCWD, on
behalf of any insurer providing insurance to either party with
respect to the services of CITY's contractor(s), a waiver of any
right of subrogation which any such insurer of said CITY's
contractor(s) may acquire against CITY or OCWD by virtue of the
payment of any loss under such insurance.
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3.5 Failure to Secure
If CITY's contractor(s) at any time during the
term of this Agreement, should fail to secure or maintain the
foregoing insurance, CITY or OCWD shall be permitted to obtain
such insurance in the CITY's contractor(s) name(s) or as an agent
of CITY's contractor(s) and shall be compensated by same for the
costs of the insurance premiums at the maximum rate permitted by
law computed from the date written notice is received that the
premiums have been paid. Any such cost shall be borne by the
CITY or the CITY's contractor(s) and not OCWD.
3.6 Additional Insured
CITY, its City Council, OCWD, its board and the
officers, agents, servants and employees of both parties shall be
named as additional insureds under all insurance policies
required under this Agreement. The naming of an additional
insured shall not affect any recovery to which such additional
insured would be entitled under this policy if not named as such
additional insured; and an additional insured named herein shall
not be liable for any premium or expense of any nature on this
policy or any extension thereof. Any other insurance held by an
additional insured shall not be required to contribute anything
toward any loss or expense covered by the insurance provided by
this policy. Proceeds from any such policy or policies shall be
payable to OCWD primarily, to CITY secondarily, and lastly to
CITY's contractor(s), if necessary.
SECTION FOUR: WAIVER
A waiver by CITY or OCWD of any breach of any term,
covenant, or condition contained herein shall not be deemed to be
a waiver of any subsequent breach of the same or any other term,
covenant, or condition contained herein whether of the same or
different character.
SECTION FIVE: HOLD HARMLESS
CITY shall idemnify and hold the OCWD, its officers,
directors, and employees, harmless from any and all claims,
demands, judgments, attorney's fees, costs, damages to persons or
property, penalties, obligations, expenses or liabilities that
may be asserted or claimed by any person or entity arising out of
or in connection with the work performed by CITY, CITY's
Contractor, its employees, agents, representatives or
subcontractors under or in connection with this agreement. In
connection therewith, CITY shall defend any action or actions
filed in connection with any of said claims, damages, penalties,
obligations, or liabilities, and shall pay all expense and costs
including attorney's fees, incurred in connection therewith.
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SECTION SIX: COST OF LITIGAT
If any legal action is necessary to enforce any
provision hereof or for damages by reason of an alleged breach of
any provisions of this Agreement, the prevailing party shall be
entitled to receive from the losing party all costs and expenses
in such amount as the court may adjudge to be reasonable cost of
litigation.
SECTION SEVEN: SUCCESSORS AND ASSIGNS
All of the terms, conditions and provisions of this
Agreement shall inure to the benefit of, and be binding upon,
CITY, OCWD and their respective successors and assigns.
SECTION EIGHT: INTEGRATED CONTRACT
This Agreement represents the full and complete
understanding of every kind of nature whatsoever between the
parties hereto and all preliminary negotiations and agreements of
whatsoever kind or nature are merged herein. No verbal agreement
or implied covenant shall be held to vary the provisions
hereof. This Agreement shall be governed by the laws of the
State of California and construed as drafted by both OCWD and
CITY. Any modification of this Agreement will be effective only
by written execution signed by both CITY and OCWD.
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IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the first date above written:
APPROVED AS TO FORM:
APPROVED AS TO FORM:
Robert Burnam
City Attorney
Address and Telephone
ORANGE COUNTY WATER DISTRICT
William IiI6 Mil s r.
General Manager
%aV'fence Krae Jr.
President
CITY OF NEWPORT BEACH
a Municipal Corporation
JW"Ilf A&.A�
Donald Strauss
Mayor.
Attest: zil � Cam' ,
6+212IDA E. RAGGIO
City Clerk
City of Newport Beach
3300 Newport Boulevard
Post Office Box 1768
Newport Beach, California
92658 -8915
(714) 644 -3011
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Orange County Water District
10500 Ellis Avenue
Post Office 8300
Fountain Valley, California
92728 -8300
(714) 963 -5661
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