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HomeMy WebLinkAboutORANGE COUNTY WATER DISTRICT AND MOULTON NIGUEL WATER DISTRICTINSURANCE NOT REQUIRED WORK MAY PROCEED CLERK OF COUNCIL. DATE: MAY 2 4 2021 INTERAGENCY AGREEMENT A-2022-079 0' PWR L0 (� � 4u &JL Interagency Agreement ("Agreement"), is entered into between the City of Santa Ana ("CITY"), Orange County Water District ("OCWD") and Moulton Niguel Water District ("MNWD"), collectively herein referred to as the PARTIES. I. PURPOSE The purpose of this Agreement is to work collaboratively to further evaluate a potential emergency interconnection ("INTERCONNECTION") between the CITY water distribution system and the East Orange County Feeder #2 ("EOCF92"). The proposed INTERCONNECTION would: a. Be located at the CITY East Station site on E. Santa Fe St., as identified in the Evaluation of Groundwater Conveyance Options, Final Draft Preliminary Report (City of Santa Ana Only), prepared by Tetra Tech, dated September2020 (exhibit 1) and; b. Only be utilized when the EOCF#2 was not conveying treated water from the Metropolitan Water District of Southern California ("MWD") Diemer Filtration Plant due to a qualifying emergency outage; The goal of this Agreement is to evaluate the feasibility forthe INTERCONNECTION by completing a preliminary design study and environmental analysis that would identify the necessary infrastructure and any necessary environmental mitigations, and refine the potential estimated construction cost for a new emergency INTERCONNECTION. Further, this Agreement authorizes the analysis of work necessary to address the institutional arrangements required to potentially deliver water from the Orange County groundwaterbasin into theEOCF#2 under qualifying emergency conditions. If warranted, a subsequent agreement would be developed to define the terms and conditions for constructing and operating the potential INTERCONNECTION during qualifying emergencies. To that end, this Agreement serves to establish a common understanding of the guiding principles for the terms and conditions of any future agreement. II. GUIDING PRINCIPLES The following guiding principles will be adhered to by all PARTIES as fundamental to this Agreement and will be adhered to in completing any work to develop the INTERCONNECTION and will be foundational to the terms and conditions of any future service agreement: a. The INTERCONNECTION would be used during qualifying emergency conditions when the EOCF#2 is not delivering water from the Diemer Filtration Plant. A qualifying emergency condition for the purposes of this Agreement is defined as significant interruption of MWD's ability to provide waterto MNWD due to failure of infrastructure as identified in the Evaluation of Groundwater Conveyance Options, Final Draft Preliminary Report (City of Santa Ana Only), prepared by Tetra Tech, dated September 2020 (exhibit 1). A drought emergency declared by the Governor of Page 1 of 7 5169249.1-- N I716.0 the State of California is not considered to be a qualifying emergency for the purposes of this Agreement; b. All new facilities related to the INTERCONNECTION will be designed and constructed to meet the system specifications and operational requirements of the CITY and OCWD during normal and emergency operating conditions. c. At no time will the delivery of water to MNWD through the INTERCONNECTION cause or exacerbate a shortage of water for meeting the needs of the CITY's retail customers, as solely determined by the CITY. d. CITY staff will be responsible for all facility operations of infrastructure constructed as a part of this Agreement. e. Regardless of which PARTY funds the development and constriction of the infrastructure associated with the INTERCONNECTION, the CITY will retain ownership of all assets within the CITY's limits. f. The CITY's rate payers and OCWD will not bear any costs of delivering emergency water to MNWD. L If the delivery of water to MNWD through the INTERCONNECTION results in the CITY exceeding (or further exceeding) OCWD's basin pumping percentage, MNWD will reimburse the CITY for its proportional share of any Basin Equity Assessment charges assessed to the CITY. ii. MWD assesses the City a capacity charge based on their peak usage over a three-year average. If the CITY's capacity charge is increased due to MNWD's emergency usage, MNWD will reimburse the CITY for the marginal difference in the annual capacity fee amount that is attributable to the conveyance of water to MNWD. iii. MNWD will reimburse the CITY for all expenses incurred by the CITY that result from the operations and maintenance of the INTERCONNECTION, including but not limited to any administrative costs, penalties, fees or fines. g. OCWD's ability to store water and operate the groundwater basin must not be banned by the CITY's providing of water to MNWD via the INTERCONNECTION and such storage will otherwise be fully compliant with all applicable requirements of the Orange County Water District Act. h. MNWD understands that the development of the INTERCONNECTION does not constitute a commitment by OCWD or the CITY to allow MNWD to store water within the Orange County groundwater basin. i. The ability of MNWD to utilize the EOCF#2 will require additional agreement by the parties responsible for the operation and maintenance of the EOCF#2. The Scope of Page 2 of 7 5169249.1-- N I716.0 Work in Section III of this Agreement describes the analysis that will be performed to detennine the feasibility and possible terms and conditions of future agreements. III. SCOPE OF WORD The scope of work to be performed by the PARTIES as a part of the Agreement shall include: a. MNWD will prepare a preliminary design analysis of the necessary infrastructure required to provide an emergency interconnection at the CITY East Station facility as identified in the Tetra Tech Conveyance Study (exhibit 1). The preliminary design will identify and size the infrastructure to deliver up to 14 cubic feet per second ("cfs") during qualifying emergency conditions and the potential water quality implications associated with reversing flows within the CITY's system and will perform a system- wide hydraulic model analysis. The infrastructure shall include, but is not limited to, production wells, treatment facilities, pump stations, pressure regulating facilities, connection to the EOCF#2, and any additional facilities required to maintain service to the CITY's existing customers when the INTERCONNECTION is operational. The preliminary design will also review the operating conditions and recommended operating protocols for utilizing the infrastructure under normal operating conditions and emergency conditions. b. MNWD will perform an environmental review of the proposed facilities based on the preliminary design analysis. The proposed environmental review will include the development of an initial study and/or Environmental Impact Report, as well as any other appropriate CEQA documents, including a mitigation monitoring and reporting program if necessary. Further, the environmental review and CEQA process will identify any necessary permits required to implement the proposed INTERCONNECTION. c. MNWD will develop two Request for Proposals ("RFPs") for the work described in paragraphs III.a and III.b above. The PARTIES will review the proposals and develop a joint recommendation, should they agree, for consideration of award of professional service contracts. If collectively agreed to by the PARTIES, the work described in paragraphs III.a and IILb above may be combined into a single RFP and professional service contract. d. The PARTIES will work with the Municipal Water District of Orange County ("MWDOC") and the other agencies responsible for the operation and maintenance of the EOCF#2 to identify the operational challenges to MNWD utilizing the EOCF#2 under emergency conditions and work to develop mitigations or solutions to address those operational challenges identified as part of the preliminary design. e. MNWD agrees to provide all funding required to perform the scope of work and related RFPs identified as a part of this Agreement, including reasonable CITY staff time, consultant fees, and legal counsel review of the scope of work deliverables and related RFPs. Page 3 of 7 5169249.1-- N 1716.0 IV. DELIVERABLES & SCHEDULE a. The deliverables anticipated as a result of this Agreement include: i. Preliminary design report to be reviewed and approved jointly by all PARTIES. ii. Preliminary and final CEQA documents prepared by MNWD and approved by the CITY as the lead agency for CEQA review for the proposed INTERCONNECTION. b. This Agreement shall commence on the date fist written above and tenninate in three (3) years, unless terminated earlier as stated in Section VI, b. below. V. AGREEMENT RESPONSIBILITIES a. MNWD will be responsible for administering the contracts associated with the scope of work in the Agreement. b. The PARTIES will work collaboratively to carry out the scope of work for this Agreement. c. The PARTIES will meet to review progress and any draft work product that may be available. d. The PARTIES will meet and work with other interested stakeholders, including but not limited to other Orange County groundwater producers, to share information and seek input on the development of the INTERCONNECTION. VI. OTHER a. The PARTIES understand the scope of work identified in this Agreement is the extent of the review and development of the proposed INTERCONNECTION. The final design and construction of any facilities recommended as a result of the scope of work will first require approval by the governing boards of all PARTIES and development of a subsequent agreement for the construction, operation, and funding of the proposed INTERCONNECTION that is demonstrated to be fully consistent with the requirements of the Orange County Water District Act, and all other applicable laws and regulations. The CITY, MNWD and OCWD reserves the right not to enter into any subsequent agreement after performance of the scope of work in this Agreement. b. This Agreement may be terminated by either PARTY with ninety (90) days written notice to all the parties hereof with an explanation as to why the Agreement is being terminated, the other Parties hereto shall contact the terminating Party and use commercially reasonable efforts to resolve the reason(s) raised by the terminating Party for terminating this Agreement. If the Parties, aftergood faith commercially reasonable efforts, are not successful in resolving their differences or concerns, then the Page 4 of 7 5169249.1-- N 1716.0 A-2022-079 terminating Party shall give a second notice after the 90th day from their first notice stating that after at least ninety (90) days the Parties despite their good faith commercially reasonable efforts were not able to resolve their concerns or issues and therefore this Agreement will be deemed terminated on the fifteenth (15th) day after the date of the second termination notice is sent to the other Parties to this Agreement. Upon termination, MNWD will be responsible for any outstanding financial commitments for any contracts entered into at the time of termination. IN WITNESS WHEREOF, the PARTIES hereby execute this Interagency Agreement. ORANGE COUNTY WATER DISTRICT O A T A A JWWk !` - IXUZI —CITY Date: 5123I 22 Step en Sheldon,,Presiclent Vincente Sarmiento, Mayor ran for Oistrict or City of Santa Ana B- Michael ar cus, General Manager MOULT N/NNIG WELWATERDISTRICT APPROVED AS TO FORM: By Date: 4/21/22 By: Date:4/21/22 Brian Probolsky, President Ruben A. Smith for Moulton Niguel Water District Special Counsel to Moulton Niguel Water Distsrict CITY OF SANTA ANA ATTEST: B Date: % Date: S�1 Daisy Gomez �_, �U Kristine Ridge Clerk of the Council City Manager APPROVED AS TO FORM R. Carvalho lSonia City Attorney Page 5 of 7 5169249.1-- N1716.0 By: U ' "_ ?k -F,4, Date: 4-18-22 John M.Funk Senior Assistant City Attorney RECOMMENDED FOR APPROVAL 1 By: KjGL. 1t�� �y h Date: Nabil Saba, P.E. Executive Director Public Works Agency Page 6 of 7 FjrsrIZIMMUraxa