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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 ,}:j l AGREEMENT FOR 0 INSPECTION AND TESTING OF THE SEAWATER DESALINATION PIPELINE c' -?7sZ, 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." 2 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. 3 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. 4 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. I . 0 w 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 rl Orange County Water District 10500 Ellis Avenue Post Office 8300 Fountain Valley, California 92728 -8300 (714) 963 -5661 Fp