AGENDA REPORT
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 1/2/2019
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Public Works Department
Department of Water and Power
SUBJECT:
Title
City Council consideration to authorize the City Manager to execute the Termination Agreement with Riverside County Flood Control and Water Conservation District for the construction of the Lincoln Avenue Reclaimed Pipeline Project.
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RECOMMENDED ACTION:
Recommended action
That the:
1. City Council approve execution of the attached Termination Agreement for a Funding Agreement with the Riverside County Flood Control and Water Conservation District (District) previously entered into for the construction of the Lincoln Avenue Reclaimed Pipeline Project.
2. City Council authorize the City Manager to execute the Termination Agreement between the City and the District.
3. Corona Utility Authority (CUA) review, ratify, and to the extent necessary, direct that the City Council take the above action.
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ANALYSIS:
In response to statewide drought conditions experienced in California in 2015 and 2016, the Bureau of Reclamation (BOR) provided funding for activities which increased local water resources. Through this program, the City of Corona Department of Water and Power (DWP) applied for and was awarded funding to increase the use of reclaimed water in Corona. BOR funding was used to begin the design of several reclaimed water lines that would be used to convert customers from potable to reclaimed water, including the Lincoln Avenue Reclaimed Pipeline Project (Project). The Project consists of the design and construction of an 8-inch ductile iron pipe in Lincoln Avenue that would extend from Railroad Street to Pomona Road. The intent of the Project was to supply reclaimed water in lieu of potable water for landscaping installed as part of the SR-91 Expansion Project.
Subsequently, DWP acquired partial funding for construction of the Project from the Riverside County Flood Control and Water Conservation District (District). On January 18, 2017, City Council approved the execution of a Funding Agreement with the District for the construction phase of the Lincoln Avenue Reclaimed Pipeline Project (Project). The Funding Agreement committed the District to fund 50 percent of the construction costs of the Project, up to a maximum of $500,000.
Drought conditions in the state have since eased, but DWP has continued to prepare for the future by developing an updated Reclaimed Water Master Plan (Plan). The Plan has identified and developed a capital improvement program focusing on specific projects to improve the operation of the reclaimed water system in lieu of distribution system extensions. Through those planning efforts, DWP has identified alternative projects that will result in greater reclaimed water usage and more efficient system operation. Therefore, DWP has decided not to proceed with construction of the Project at this time.
Since construction is not proceeding for an undetermined time period, the City and the District wish to terminate the previously executed Funding Agreement by executing the attached Termination Agreement. Since construction has not yet begun, the District has not yet provided any funding to the City and thus there is no cost or reimbursement made necessary as a result of the Termination Agreement.
COMMITTEE ACTION:
Not applicable.
STRATEGIC PLAN:
Not applicable.
FISCAL IMPACT:
There is no fiscal impact for this action.
ENVIRONMENTAL ANALYSIS:
This action is exempt from CEQA.
PREPARED BY: TRACY MARTIN, DWP UTILITIES PROJECT MANAGER
REVIEWED BY: VERNON R. WEISMAN, P.E., DISTRICT ENGINEER
REVIEWED BY: TOM KOPER, P.E., ASSISTANT PUBLIC WORKS DIRECTOR
REVIEWED BY: NELSON D. NELSON, P.E., PUBLIC WORKS DIRECTOR
REVIEWED BY: TOM MOODY, GENERAL MANAGER
REVIEWED BY: DEAN DERLETH, CITY ATTORNEY
REVIEWED BY: KERRY D. EDEN, ASSISTANT CITY MANAGER/ADMINISTRATIVE SERVICES DIRECTOR
REVIEWED BY: MICHELE NISSEN, ASSISTANT CITY MANAGER
SUBMITTED BY: DARRELL TALBERT, CITY MANAGER & EXECUTIVE DIRECTOR
Attachment: Termination Agreement, Lincoln Avenue Reclamation Water Pipeline