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Home My WebLink About14 - Ownership Transfer of Jamboree Road Sewer Line from OC Sanitation District to Newport BeachPORT CITY OF O � _ i NEWPORT BEACH City Council Staff Report <i FO RN November 27, 2018 Agenda Item No. 14 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Mike Sinacori, Acting City Engineer, msinacori@newportbeachca.gov PHONE: 949-644-3342 TITLE: Ownership Transfer of Jamboree Road Sewer Line from Orange County Sanitation District to City of Newport Beach ABSTRACT: Approve a proposed agreement between Orange County Sanitation District (OCSD) and the City of Newport Beach to transfer ownership of an OCSD sewer line, which runs in Jamboree Road and into Big Canyon, to the City, and accept a contribution of $300,000 from OCSD for future maintenance of the sewer line and associated facilities. RECOMMENDATION: a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 - Existing Facilities, of the CEQA Guidelines (that allows for operation, repair and maintenance of existing public structures) because this project has no potential to have a significant effect on the environment; b) Approve the Quitclaim Sewer Transfer Agreement between Orange County Sanitation District and the City of Newport Beach; and c) Approve Budget Amendment No. 19BA-020 increasing revenue estimates in the Wastewater fund by $300,000.00 from Orange County Sanitation District (Account No. 71101-431075-19S03) and increasing expenditure appropriations by $300,000 (Account No. 71101-980000-19S03) to cover costs for inspection, maintenance, repair, or rehabilitation of the subject sewer. FUNDING REQUIREMENTS: The proposed Budget Amendment recognizes $300,000 in additional revenue from OCSD and appropriates these funds to Sewer Main Lining and Repairs, Account No. 71101-980000-19S03. The proposed budget amendment and transfer agreement has no immediate impact on fund balance but the City is accepting the responsibility to maintain and replace the sewer line in perpetuity. 14-1 Ownership Transfer of Jamboree Road Sewer Line from Orange County Sanitation District to City of Newport Beach November 27, 2018 Page 2 DISCUSSION: OCSD is the owner of a segment of 10 -inch sewer line in Jamboree Road that it considers a local sewer main as it only serves Newport Beach residents and businesses. OCSD normally operates mains that receive wastewater flow from multiple agencies. This main was constructed in the late 1950's and previously served areas located within unincorporated county lands outside the City. The area served now is completely within the City of Newport Beach and the segment can no longer be considered a regional sewer main. The segment begins at the intersection of Jamboree Road and Ford Road, runs 800 feet south along Jamboree Road, turns west into Big Canyon, crosses under Big Canyon Creek, and connects to an OCSD sewer main within Big Canyon (see Exhibit B in Attachment A). OCSD wishes to transfer ownership of this sewer line segment to the City and will make a one-time payment to the City of $300,000 for future inspection, maintenance, repair, or rehabilitation costs for the subject line. City agrees to accept the main and associated facilities in "As Is" condition. The main has been video inspected and is in satisfactory condition. This main will be included in the next City Sewer Main Lining and Repair contract for an internal liner, currently slated for spring 2019. Staff recommends acceptance of this wastewater facility. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 — Existing Facilities of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 (that allows for the operation, repair, and maintenance existing public structures) because it has no potential to have a significant effect on the environment. 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 — Quitclaim Sewer Transfer Agreement Attachment B — Budget Amendment 14-2 ATTACHMENT A RECORDING REQUESTED BY AND, WHEN RECORDED, RETURN TO: ORANGE COUNTY SANITATION DISTRICT P. O. Box 8127 Fountain Valley, California 92728 Attn: Clerk of the Board WITH A COPY TO: City of Newport Beach P.O. Box 1768 Newport Beach, CA 92658 Attention: City Clerk's Office (Space Above This Line for Recorder's Use) Exempt from recording fee — California Government Code Section 6103 QUITCLAIM SEWER TRANSFER AGREEMENT BETWEEN ORANGE COUNTY SANITATION DISTRICT AND THE CITY OF NEWPORT BEACH THIS AGREEMENTforthe transfer of certain sewers and appurtenant facilities (hereafter, "Agreement") is made and entered into this _ day of , 2018, by and between ORANGE COUNTY SANITATION DISTRICT, a County Sanitation District organized under the laws of the State of California, ("Grantor") and the CITY OF NEWPORT BEACH, a municipal corporation ("Grantee"). Grantor is a regional operator of sewage collection facilities. Grantor also incidentally owns certain local sewers including, but not limited to, the local sewers which are the subject of this Agreement. This Agreement shall document and memorialize a factual understanding concerning certain local sewers and appurtenant facilities to be transferred to Grantee, and a one-time payment being made by Grantor to Grantee in connection therewith. Grantee operates a local sewage collection system within its jurisdiction. Grantee will maintain and operate the sewers which are the subject of this Agreement as part of its local sewage collection system, and shall have sole responsibility therefor following the transfer to Grantee. NOW THEREFORE BE IT RESOLVED that the Grantor and Grantee agree as follows: 1. Grant of Sewer Pipelines and Payment to Grantee For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Grantor does hereby grant, remise, release, quitclaim, convey and transfer to Grantee all of Grantor's interest in all sewer lines and appurtenant sewer facilities covered by this Agreement (collectively, "Facilities") owned by Grantor, which Facilities are described in Exhibit "A" and visually depicted in Exhibit "B" 84629.001 - 2217782 14-3 attached hereto and incorporated by reference herein. In the event of any conflict or discrepancy between Exhibits "A" and Exhibit "B", Exhibit "A" shall control. In connection with this transfer of the Facilities, Grantee has been granted an opportunity to fully inspect the condition of the subject sewer lines, manholes, easements and other property rights and appurtenances and has done so. Grantee and Grantor agree that necessary repairs to these Facilities are estimated to cost approximately Three Hundred Thousand Dollars and 001100 ($300,000.00) to complete, and that, in consideration of the condition of the Facilities, Grantor shall, as sole, full and final satisfaction of any obligation to inspect, maintain, repair, or rehabilitate any such Facilities, or any portion thereof, and in consideration of the form of conveyance as a quitclaim, with no representation or guarantee of title, shall make a one-time payment to Grantee of Three -Hundred Thousand Dollars and 00/100 ($300,000.00), no later than ten (10) business days after recordation of this Agreement, which funds shall be used by Grantee to make any such inspections, maintenance, repairs, or rehabilitations of the Facilities as may be necessary or appropriate. Even if the cost of such inspections, maintenance, repairs, or rehabilitations should exceed $300,000.00, Grantee waives all claims against Grantor for the payment of any additional sum therefor or with respect to the condition of title and Grantor shall in no way be obligated to make any additional payment therefor. In connection with the foregoing, Grantee, on behalf of Grantee and Grantee's officers, directors, managers, affiliates, successors and assigns ("Grantee Related Parties") hereby expressly, fully and forever releases and discharges (which release and discharge shall be continuing and shall survive the transfer of the Facilities) Grantor and Grantor's officers, directors, managers, affiliates, employees, representatives, successors and assigns from any and all losses, expenses, claims, costs, damages, rights of subrogation, debts, attorneys' fees, actions, suits, judgments, awards, obligations and/or liabilities of any kind, whether foreseeable or unforeseeable, known or unknown, or suspected or unsuspected, with respect to or in any way relating to or indirectly or directly arising out of the current condition of the Facilities or any repair or replacement work required with respect such Facilities and/or any deferred maintenance. Grantee, on behalf of itself and the Grantee Related Parties, agrees, represents and warrants that the matters released above are not limited to matters which are known or disclosed and hereby knowingly and voluntarily waives and relinquishes all rights and benefits under Section 1542 of the California Civil Code (as such Civil Code may apply to the release above), which provides: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." 2. No Warranty of Title or Condition; Assumption of Responsibility Grantor makes no warranty or representation of any kind regarding its title to the Facilities, the condition of the Facilities or the suitability of the Facilities for any purpose and Grantee accepts such Facilities subject to all covenants, conditions, 84629.001 - 221T782 14-4 burdens, restrictions, reservations, and obligations existing as of the date of transfer. Grantee has been granted an opportunity to fully inspect the Facilities and has done so. Subject only to receipt of the one-time payment described above, Grantee accepts the Facilities in their "As Is" condition, without representation or warranty of any kind and without recourse to Grantor. Grantee hereby accepts and assumes all ownership and responsibility for such transferred Facilities, and agrees to indemnify, defend and hold Grantor harmless from any liability, claim, cost, expense or damage hereafter arising from the ownership or use of the Facilities. 3. Assignment The benefits and burdens of this Agreement shall be binding upon and inure to all successors -in -interest and assigns of the parties. 4. Amendment Any amendment to this Agreement must be in writing, signed and acknowledged by the Grantor and Grantee, and duly recorded in the Official Records of the County Recorder of the County of Orange, State of California. 5. Entire Agreement This Agreement (including any attached exhibits) contains the entire agreement between Grantor and Grantee regarding the subject matter of the Agreement, including all representations and warranties between them, and supersedes any prior agreement or understanding with respect to the subject matter hereof. 6. Notices Notices relating to this Agreement must be in writing and sent to the addresses set forth below. A party may change its address for notices by giving notice as required by this Section. A written notice will be considered given (i) when personally delivered, or (ii) two business days after deposit in the United States Mail as first class mail, certified or registered, return receipt requested with postage prepaid, or (iii) one business day after deposit with a reputable overnight delivery service for next business day delivery. The parties' addresses for notices are as follows: To Grantor: Orange County Sanitation District Attn: General Manager P.O. Box 8127 Fountain Valley, CA 92728-8127 To Grantee: City of Newport Beach Attn: City Manager 100 Civic Center Drive Newport Beach, CA 92660 84629.001 - 2217782 14-5 7. Authority Each party, and the individuals signing this Agreement on behalf of each party, represents and warrants that the individuals who have signed this Agreement on behalf of the parties have the legal power, right and authority to make and enter into this Agreement and bind each respective party hereto. IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: tGI"VlI Y CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Alf By: Aaron C. Harp Marshall "Duffy" Duffield City Attorney Mayor ATTEST: Date: By: Leiiani 1. Brown City Clerk APPROVED AS TO FORM: OCSD Special Counsel Date- Abram/Roy LLP By: Dennis Roy \ 1 5pe'si ounse Lf ATTEST- Date:' Lill Date: j ORANGE COUNTY SANITATION DISTRICT Date: to 1 z g 1 19 By: - — Greg ryC. a ourn, PLS Board Chairman [SEWER TRANSFER AGREEMENT BETWEEN ORANGE COUNTY SANITATION DISTRICT AND THE CITY OF NEWPORT BEACH] 84629.001 - 721778 2 14-6 EXHIBIT "An DESCRIPTION OF FACILITIES SiRFEI DUWN%l Rk ARl P6H VAININ VNEW4I IWSIREAU MH s7A7111N YkUiECi f)Id in [FN(ft) SL IaYE Ma P 7NAlF.ftIA! JAMBOREE 9AY0010-0585 90+92.88 w ROY0010-0590 94400.00 S -C JO' 3l! 0.039x4 3439 VCP JAMBOREE RAYD210-05W 87+50.00 5L BAYC010-0585 9Rr97.AR SC JO' 350 0,0502 5734 VC7 i JAMBOREE BAY0010-0375 84r15.00 5^C 3AYCO10-0580 8760.00 5-C 10' 332 00731 5435 VCP WABOREE BAY0010-0570 83+90.00 5-C BAYC010-0575 BU15.00 5-C 101 E5 0.0935 5439 VCP JAMBUNEE ' 84YU010-0370 82+42.00 5-C RAYW;"570 83x90,00 5-C '_5' 00005 5439 VCP TOTAL =VG -H: IM00 ft TOTAL MANHOLE5: 5 ' .V7H mUned by CC50 84629.001 - 221778.2 14-7 EXHIBIT °B" DEPICTION OF FACILITIES [SEE ATTACHED] 84629-001 -7217782 BAY00f0-05-15 I � SAY00104399 $AY9010-0315 , I f 9AY9910 07e0 r Reynn1nJ17i5 I I \ \a �+j+� EXHIBIT B `Lr�5'� 17 OCSD Proposed Sewer Transfers 5 to City of Newport Beach • wq w+etsPTWomdfm7nW. 0 125 250 500 • R.�.r i�d,d.. wdn.a q o� / . rarrra{r Feet /I Rnp."S.—Retared 9y OC:A / �• r• mctsa,, �`f. I.wrGsr. uNLmWwwa 84629.001 - 2217782 BAY0010-9550 qy 0 'Po 81G CANroN OR 14-9 CERTIFICATE OF ACCEPTANCE [TO BE ATTACHED BY CITY OF NEWPORT BEACH 84629.0 01 -22M82 14-10 CERTIFICATE OF ACCEPTANCE (California Government Code Section 27281) This is to certify that the interest in real property conveyed by the Quitclaim Sewer Transfer Agreement between Orange County Sanitation District and the City of Newport Beach, dated , 2018 from ORANGE COUNTY SANITATION DISTRICT, a County Sanitation District organized under the laws of the State of California, to CITY OF NEWPORT BEACH, a municipal corporation and charter city (herein referred to as the "Grantee"), is hereby accepted by order of the City Council of the City of Newport Beach on , 2018 and the grantee consents to recordation thereof by its duly authorized officer. CITY OF NEWPORT BEACH, a municipal corporation and charter city Date - By: Marshall "Duffy" Duffield Mayor APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: I c t Y/ 10 By: Aaron C_ Harp City Attorney ATTEST: Date: By: Leilani I. Brown City Clerk 84529 001 - 2217782 14-11 ATTACHMENT B City of Newport Beach NO. BA- 19BA-020 BUDGET AMENDMENT 2018-19 AMOUNT:j $300,000.00 EFFECT ON BUDGETARY FUND BALANCE: X Increase Revenue Estimates X Increase Expenditure Appropriations Transfer Budget Appropriations SOURCE: from existing budget appropriations X from additional estimated revenues from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase revenue estimates in the Wastewater Fund from Orange County Sanitation District (OCSD) and increase expenditure appropriations for the use of inspection, maintenance, repair or rehabilitation of the subject sewer. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object REVENUE ESTIMATES Org Obiect 71101 431075 Description Project Description 19S03 Sewer Ent. - OCSD Contribution 19S03 -Local -71 1 -Reimb EXPENDITURE APPROPRIATIONS Org Object Proiect 71101 980000 19S03 Signed.- Signed igned: Signed Signed: Financial Approval: Fi Description Sewer - CIP Expenditure 19S03 -Construct -711 -Unassigned 19S03 -Unassigned -711 -Unassigned ve Approval: City Manager City Council Approval: City Clerk Amount Debit Credit $300,000.00 Automatic $100,000.00 $200,000.00 //- /A/-/$ Date Date Date 14-12 Increase in Budgetary Fund Balance AND Ij Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance ONE-TIME? e Yes No This budget amendment is requested to provide for the following: To increase revenue estimates in the Wastewater Fund from Orange County Sanitation District (OCSD) and increase expenditure appropriations for the use of inspection, maintenance, repair or rehabilitation of the subject sewer. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object REVENUE ESTIMATES Org Obiect 71101 431075 Description Project Description 19S03 Sewer Ent. - OCSD Contribution 19S03 -Local -71 1 -Reimb EXPENDITURE APPROPRIATIONS Org Object Proiect 71101 980000 19S03 Signed.- Signed igned: Signed Signed: Financial Approval: Fi Description Sewer - CIP Expenditure 19S03 -Construct -711 -Unassigned 19S03 -Unassigned -711 -Unassigned ve Approval: City Manager City Council Approval: City Clerk Amount Debit Credit $300,000.00 Automatic $100,000.00 $200,000.00 //- /A/-/$ Date Date Date 14-12