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HomeMy WebLinkAboutItem 21 - Public Hearing - First Amendment to Interagency Agreement with the Orange County Water District and Moulton Niguel Water DistrictPublic Works Agency www.santa-ana.org/pw Item # 21 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 20, 2025 TOPIC: Agreement Amendment for Interagency Emergency Interconnection Study AGENDA TITLE First Amendment to Interagency Agreement with the Orange County Water District and Moulton Niguel Water District RECOMMENDED ACTION Authorize the City Manager to execute the first amendment to the agreement with Orange County Water District and Moulton Niguel Water District, to extend the term of the agreement to June 30, 2028, and to amend the scope of work to include a final design of the proposed infrastructure based on the preliminary design analysis (Agreement No. A-2025-XXX). GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The Public Works Agency's (PWA) Water Resources Division oversees and maintains the daily operations of the City's water distribution system which serves more than 45,000 customer connections. The water system is comprised of approximately 480 miles of water main, 21 groundwater wells, seven pump stations, 10 reservoirs with a storage capacity of 49 million gallons, four pressure regulating stations, and seven connection points to Metropolitan Water District of Southern California (MET) water supplies. The City pumps approximately 85% of its potable water from the Orange County Groundwater Basin, which is managed by Orange County Water District (OCWD), while the remainder of the City's potable water needs come from imported water sources via seven MET connections located within the City. As a result of the City's investment in water supply capacity, the City's 2017 Water Master Plan identified that the City's water system has adequate capacity to supply the City's maximum daily demands for existing, near -term, and buildout scenarios using only groundwater wells. Agreement Amendment for Emergency Interconnection Study May 20, 2025 Page 2 Moulton Niguel Water District (MNWD), which serves more than 170,000 customers in Laguna Niguel, Aliso Viejo, Mission Viejo, Laguna Hills, Dana Point, and San Juan Capistrano, relies solely on imported MET water to meet its customers' potable water needs. MNWD is not able to draw from the Orange County Groundwater Basin, as the City of Santa Ana does, because the groundwater basin is only accessible to agencies in northern Orange County that fall within its boundaries. Due to MNWD's sole reliance on imported water, the district is vulnerable to natural disasters or infrastructure failure that cause outages in the MET system. On May 17, 2022, City Council approved an Interagency Agreement (Exhibit 1) with OCWD and MNWD to complete a preliminary design study and environmental analysis to identify the needed environmental mitigations and the necessary infrastructure modifications to Santa Ana's water facilities and distribution system to enable Santa Ana to convey water from the Orange County Groundwater Basin to the water transmission pipeline that supplies south Orange County water agencies in an emergency. Data and information from the study has been used by MNWD to develop a scope of work for a potential program to convey groundwater to MNWD in the event an emergency renders the MET's water delivery infrastructure incapable of making deliveries. Through this potential program, MNWD would build resiliency and provide improved emergency preparedness benefits for the City through increased groundwater production, upgraded backup power, and other critical water infrastructure improvements. The potential emergency water supplies for MNWD would only be available when conditions would have no adverse impacts to Santa Ana's water supply operations. The construction of any facilities recommended as a result of the design, study, and environmental analysis will first require approval by the governing boards of all parties and the development of a subsequent agreement for the construction, operation, and funding of the proposed interconnection. Staff recommends the approval of the recommended action to allow for the preliminary design study and environmental analysis efforts to continue and for final design to begin. There is no cost to the City associated to the study, all costs are borne by MNWD. The City, MNWD, and OCWD reserve the right not to enter into any subsequent agreement after the completion of the study and analysis. (Exhibit 2). ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT There is no fiscal impact associated with the action. Agreement Amendment for Emergency Interconnection Study May 20, 2025 Page 3 EXHIBIT(S) 1. Item #30, May 17, 2022 Staff Report 2. Amendment to Interagency Agreement with the Orange County Water District and Moulton Niguel Water District Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency Approved By: Alvaro Nunez, City Manager EXHIBIT 1 n_= Public Works Agency www.santa-ana.org/pw Item # 30 9V City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 17, 2022 TOPIC: Agreements for Water Interconnection Study AGENDA TITLE Approve an Appropriation Adjustment, Interagency Agreement with the Orange County Water District and Moulton Niguel Water District to Evaluate a Potential Emergency Interconnection, and Approve an Agreement with Stantec Consulting Services, Inc. in an Amount Not to Exceed $200,000 for a Three-year Term to Conduct a Preliminary Design Study and Environmental Analysis for an Emergency Water Distribution Interconnection (Non -General Fund) RECOMMENDED ACTION 1. Authorize the City Manager to execute an agreement with Orange County Water District and Moulton Niguel Water District for a three-year term beginning on May 17, 2022 and ending on May 16, 2025 to conduct a preliminary design study and environmental analysis for an emergency water distribution interconnection, subject to non -substantive changes approved by the City Manager and City Attorney. 2. Approve an appropriation adjustment to recognize $200,000 in reimbursement obligation funds from MNWD into the Water, Public Works Water Revenue, Expense Reimbursement revenue account and appropriate the same amount into the Water, Water Admin/Engineering, Contract Services — Professional expenditure account. (Requires five affirmative votes) 3. Authorize the City Manager to execute an agreement with Stantec Consulting Services, Inc., for a three-year term beginning on May 17, 2022, and ending on May 16, 2025, to evaluate a water interconnection with Moulton Niguel Water District, in an amount not to exceed $200,000, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The City's Water Resources Division oversees and maintains the daily operations of the City's water distribution system, which serves more than 45,000 customer connections. The water system is composed of approximately 480 miles of water main, 21 groundwater wells, seven pump stations, 10 reservoirs with a storage capacity of 49 million gallons, City Council 30 — 1 5/17/2022 Agreements for Water Interconnection Study May 17, 2022 Page 2 four pressure regulating stations, and seven connection points to Metropolitan Water District of Southern California (MET) water supplies. The City pumps approximately 75 percent of its potable water from the Orange County Groundwater Basin, which is managed by Orange County Water District (OCWD). While the remainder of the City's potable water needs come from imported water sources via the seven MET connections located within the City. It is important to note that as a result of the City's investment in water supply capacity, the City's 2017 Water Master Plan identified that the City's water system has adequate capacity to supply the City's maximum daily demands for existing, near -term, and buildout scenarios using only groundwater wells. Moulton Niguel Water District (MNWD), which serves more than 170,000 customers in Laguna Niguel, Aliso Viejo, Mission Viejo, Laguna Hills, Dana Point, and San Juan Capistrano, relies solely on imported MET water to meet its customers' potable water needs. MNWD is not able to draw from the Orange County Groundwater Basin, as the City of Santa Ana does, because the groundwater basin is only accessible to agencies in northern Orange County, which fall within its boundaries. Due to MNWD's sole reliance on imported water, the district is more vulnerable to natural disasters or infrastructure failure that cause outages in the MET system. As a result, OCWD and MNWD approached the City to conduct a preliminary design study and environmental analysis (Exhibit 1) to identify the needed environmental mitigations and the necessary infrastructure modifications to Santa Ana's water facilities and distribution system to enable Santa Ana to convey water from the Orange County Groundwater Basin to the water transmission pipeline that supplies south Orange County water agencies. This information will be used by OCWD and MNWD to develop estimated construction costs and scope of work for a potential program to convey groundwater to MNWD in the event an emergency renders the MET's water delivery infrastructure incapable of making deliveries. Stantec Consulting Services, Inc. has been selected to assist in the development and review of the preliminary design study (Exhibit 2) due to their familiarity with the City of Santa Ana's water system. MNWD will fund all work conducted as a result of this agreement on a reimbursement basis. The final design and construction of any facilities recommended as a result of the study and environmental analysis will first require approval by the governing boards of all parties and the development of a subsequent agreement for the construction, operation, and funding of the proposed interconnection. The City, MNWD and OCWD reserve the right not to enter into any subsequent agreement after the completion of the study and analysis. ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. City Council 30 — 2 5/17/2022 Agreements for Water Interconnection Study May 17, 2022 Page 3 FISCAL IMPACT As part of the agreement, MNWD agrees to provide all funding required to perform the scope of work and related RFPs identified as part of the agreement, including reasonable City staff time, consultant fees, and legal counsel review of the scope of work deliverables and related RFPs. MNWD will pay the City, on a reimbursement basis, the actual and necessary costs to complete the proposed preliminary design study conducted under the agreement with Stantec. Approval of the requested Appropriation Adjustment will recognize $200,000 in reimbursement obligation funds from MNWD, as outlined in the Interagency Agreement, into the Water, Public Works Water Revenue, Expense Reimbursement revenue account (06017002-57000) and appropriate the same amount into the Water, Water Admin/Engineering, Contract Services — Professional expenditure account (06017645-62300). Project number 22-6475 has been issued to track expenditures for reimbursement purposes. Funds are budgeted and available as shown in the table below. Accounting Unit, Accounting Unit Fund Fiscal Year Account Amount - Account # Description Description Contract (3-Year Term) Water 2021-22 06017645-62300 Water Admin/Engineering, $25,000 (May -June) (22-6475) Contract Services - Professional Water 2022-23 06017645-62300 Water Admin/Engineering, $130,000 (July -June) (22-6475) Contract Services - Professional Water 2023-24 06017645-62300 Water Admin/Engineering, $35,000 (July -June) (22-6475) Contract Services - Professional Water 2024-25 06017645-62300 Water Admin/Engineering, $10,000 (July -May) (22-6475) Contract Services - Professional TOTAL $200,000 EXHIBIT(S) City Council 30 — 3 5/17/2022 Agreements for Water Interconnection Study May 17, 2022 Page 4 1. Interagency Agreement with Orange County Water District and Moulton Niguel Water District 2. Agreement with Stantec Consulting Services, Inc. Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency Approved By: Kristine Ridge, City Manager City Council 30 — 4 5/17/2022 Docusign Envelope ID: 7A15A807-990B-441D-9711-1D66EBA8E5C1 AMENDMENT NO. 1 TO THE INTERAGENCY AGREEMENT BETWEEN THE CITY OF SANTAANA, ORANGE COUNTY WATER DISTRICT, AND MOULTON NIGUEL WATER DISTRICT PROJECT: EMERGENCY INTERCONNECTION BETWEEN THE CITY OF SANTAANA EAST STATION AND EAST ORANGE COUNTY FEEDER #2 This Amendment No. 1 ("Amendment") is entered into and effective as of April 16, 2025, amending the Interagency Agreement dated May 24, 2022 ("Agreement"), by and 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. Any capitalized terms used but not defined herein shall have the meaning assigned to them in the Agreement. RECITALS A. WHEREAS, on May 24, 2022, the PARTIES entered into the Agreement to work collaboratively to further evaluate the feasibility of a potential emergency interconnection ("INTERCONNECTION") by completing a preliminary design study and environmental analysis. B. WHEREAS, the Agreement terminates on May 24, 2025. C. WHEREAS, the PARTIES desire to amend the Agreement's Scope of Work to be performed by the PARTIES under this Agreement and extend the term of the Agreement until June 30, 2028. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, the PARTIES agree as follows: 1. The term of the Agreement is hereby extended through June 30, 2028. 2. The Work to be performed by the PARTIES under this Agreement shall be revised to include the Work for MNWD to prepare a final design of the proposed infrastructure based on the preliminary design analysis. Final design shall commence following acceptance of the preliminary design report by all PARTIES. 3. Anticipated deliverables under this Agreement shall be revised to include final design documents (construction plans and specifications) prepared by MNWD for review and approval by all PARTIES. Multiple final design submittals are anticipated. The PARTIES shall be provided with an opportunity to review each final design submittal. 4. MNWD will develop a Request for Proposals ("RFP") in collaboration with the other PARTIES for the work described in paragraph 2 above. The PARTIES will review the proposals and develop a joint recommendation, should they agree, for consideration of award of a professional service contract. If collectively agreed to by the PARTIES, the work described in paragraph 2 above may be combined with an environmental review and preparation of CEQA documents as described in the Agreement into a single RFP and professional service contract. Page 1 of 2 Docusign Envelope ID: 7A15A807-990B-441D-9711-1D66EBA8E5C1 5. MNWD agrees to provide all funding required to perform the scope of work and related RFPs identified as part of the Agreement and this Amendment. MNWD agrees to reimburse CITY and OCWD for reasonable staff time, consultant fees, and legal counsel expenses associated with reviewing the scope of work deliverables and related RFPs identified as part of the Agreement and this Amendment. 6. All other provisions of the Agreement will remain in full force and effect. In the event of any conflict or inconsistency between the Agreement and this Amendment, the terms of this Amendment shall control. OR A "5�, jj� NTY WATER DISTRICT B pt Uu L`� Date4/22/2025 Denis R. Bilodeau, President for Orange County Water District DocuSigned by: E �Vt,wt� ,�UJnfrVY eneral counsel 5C52400A76BE4DA... CITY OF SANTA ANA By: Date: Valerie Amezcua, Mayor for City of Santa Ana ATTEST: By: Date: Alvaro Nunez, City Manager for City of Santa Ana APPROVED AS TO FORM: Sonia R. Carvalho City Attorney B Date: 2/27/25 Kyle ellesen Assistant City Attorney MOULTON NIGUEL WATER DISTRICT By:C)- C0-� Date: 3/13/25 Duane Cave, President for Moulton Niguel Water District rj'� Signed by: B Date-4/22/2025 John Kennedy, General Manager for Orange County Water District By: Date: Jennifer L. Hall, Clerk of the Council for City of Santa Ana RECOMMENDED FOR APPROVAL: By: x�dsaAv Date: 04/24/25 Nabil Saba, P.E., Executive Director Public Works Agency APPROVED AS TO FORM: B : Date: 3/3/25 Ruben . Smith, Special Counsel to Moulton Niguel Water District Page 2 of 2 05 20 25 PWA 01 MNWD-OCWD Interagency Agreement Amendment Draft Staff Report Final Audit Report 2025-04-24 Created: 2025-04-24 By: Kimberly Orozco (korozco@santa-ana.org) Status: Signed Transaction ID: CBJCHBCAABAA_XWOQx52ULOn6pZE2T2Ldf5gNi-YOPOr "05 20 25 PWA 01 MNWD-OCWD Interagency Agreement Ame ndment Draft Staff Report" History E Document created by Kimberly Orozco (korozco@santa-ana.org) 2025-04-24 - 3:05:17 PM GMT Document emailed to Armando Fernandez (afernandez@santa-ana.org) for approval 2025-04-24 - 3:05:22 PM GMT Document emailed to Nabil Saba (nsaba@santa-ana.org) for signature 2025-04-24 - 3:05:22 PM GMT Email viewed by Nabil Saba (nsaba@santa-ana.org) 2025-04-24 - 3:24:59 PM GMT Email viewed by Armando Fernandez (afernandez@santa-ana.org) 2025-04-24 - 3:29:39 PM GMT Document approved by Armando Fernandez (afernandez@santa-ana.org) Approval Date: 2025-04-24 - 3:29:56 PM GMT - Time Source: server Document e-signed by Nabil Saba (nsaba@santa-ana.org) Signature Date: 2025-04-24 - 3:32:23 PM GMT - Time Source: server © Agreement completed. 2025-04-24 - 3:32:23 PM GMT a Adobe Acrobat Sign