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HomeMy WebLinkAbout24 - Amendment to Settlement Agreement IRWD, OCWD and CityTO: FROM: SUBJECT: BACKGROUND C3� l AGENDA ITEM NO. 24 BY THE CICI OUNCIL CITY OF NEWPORT BEACH CITYOFNEWPORTBEAC Office of the City Manager DE 9 December 9, 1996 _ U Honorable Mayor and Members of the City Council Kevin J. Murphy, City Manager AMENDMENT TO SETTLEMENT AGREEMENT IRWD, OCWD AND CITY The Settlement Agreement between the City, IRWD and OCWD regarding the construction of an alternative project to eliminate the discharge of reclaimed water into San Diego Creek and the Upper Newport Bay provides that the excess flows above the current demand for OCWD reclaimed water (3.2 million gallons per day) are to be disposed of through a connection with the County Sanitation Districts' outfall facility near their Santa Ana River facility. The cost of the connection is estimated to be $100,000 and the parties believe that the construction can take place in a time frame to meet the October 1997 deadline. The Settlement Agreement provides that IRWD and the City are required to reach an agreement on the cost s' °ging of this connection by January 1997. In recent discussions with IRWD they indicated a willingness to extend this deadline to February 1997 to allow time to receive and open bids on the intertie pipeline connecting their Michelson Plant and OCWD's pipeline near Bayview and Jamboree Road. The attorney for IRWD has prepared the amendment to the agreement necessary to extend this deadline and the City Attorney has reviewed and approved the document. RECOMMENDATION Approve the 2nd Amendment to the Settlement Agreement between the City, IRWD, and OCWD amending Section 6 and the date to reach agreement with IRWD on the County Sanitation District Outfall Facility. r-1 AMENDMENT NO. 2 TO AGREEMENT THIS AMENDMENT NO. 2 TO AGREEMENT is entered into this day of December, 1996, by and between the Orange County Water District (OCWD), the Irvine Ranch Water District (IRWD), and the City of Newport Beach (City), hereinafter collectively referred to as "the Parties." Recitals: A. The Parties have entered into an agreement dated July 17, 1996 regarding implementation of the Wetlands Water Supply Project (WWSP) proposed by IRWD, and have entered into the Revised Amendment to Agreement dated (collectively, the "Agreement") B. Paragraph 6(B) of the Agreement provides for a proposed agreement to be reached between City and IRWD to resolve disposal of excess flows as one of the issues in the development of a longterm "no discharge" scenario. Such proposed agreement regarding the preparation of, and payment for, all necessary environmental documents, the processing and approval of all necessary permits, the design and construction of any physical facility necessary to discharge, and payment of all costs related to the actual discharge or transmission of, that portion of the excess flows that OCWD is unable to beneficially use, was to be entered into by January, 1997, but the City and IRWD believe additional time to complete such agreement would allow them to have the benefit of information on the cost of the physical discharge facilities that will be included in the bids to be opened on the intertie facilities in January, 1997. 1 NOW, THEREFORE, THE PARTIES AGREE THAT THE AGREEMENT SHALL BE AMENDED AS FOLLOWS: 1. The January, 1997, deadline contained in Paragraph 6(B) shall be extended to February 3, 1997. 2. Except as expressly amended herein, all other terms and conditions of the Agreement shall remain in full force and effect. Approved as to form: General Counsel IRWD Approved as to form: By: General Counsel OCWD Approved as to form: City Attorney IRVINE RANCH WATER DISTRICT President By: Secretary ORANGE COUNTY WATER DISTRICT By: President Az General Manager CITY OF NEWPORT BEACH -32 City Manager