HomeMy WebLinkAboutAGR-6773.A - MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (MWDOC) - WATER LOSS CONTROL PARTICIPATIONDocusign Envelope ID:6DCFEFF6-78A8-8789-81 E8-0ED90DF03280
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WATER LOSS CONTROL PARTICIPATION AGREEMENT
This Water Loss Control Participation Agreement ("Agreement") is made and effective
as of the 1st day of July 2026, by and between the Municipal Water District of Orange County
MWDOC") and City of Orange, a municipal corporation ("Participating Agency"). MWDOC and
Participating Agency may be collectively referred to as "Parties" and individually as a "Party."
RECITALS
A. MWDOC offers its member agencies ("Member Agencies") the benefits of certain
programs known as choice services, that they may elect to participate in ("Choice
Services"). These Choice Services provide cost-sharing and shared services
components that allow a Participating Agency to obtain economies of scale and save
money. If a Member Agency elects to receive certain Choice Services, the
Participating Agency executes an agreement with MWDOC that sets forth the terms
and conditions for those Choice Services.
B. With input from its Member Agencies, MWDOC previously prepared a Water Loss
Control Shared Services Business Plan, which proposed five water loss control shared
services ("Shared Services") to be provided to Member Agencies by MWDOC staff
and, as necessary and as determined by MWDOC, by third-party vendors/contractors
Contractor or Contractors").
C. MWDOC also entered into a professional services agreement with E Source
Companies, LLC ("Consultant" or "E Source") for E Source to provide Water Loss
Control Technical Assistance ("Technical Assistance") to Member Agencies
Consultant Agreement").
D. The purpose of this Water Loss Control Participation Agreement is to create a unified
agreement between MWDOC and Participating Agency that combines all of the water
loss control Shared Services and Technical Assistance programs ("Programs") into
one agreement. Addenda to this Agreement will be issued annually.
E. Participating Agency may elect which of the Shared Services and/or Technical
Assistance (jointly referred to as WLC Services), if any, it wishes to receive from
MWDOC by completing annual election forms ("Election Forms"). The Election Forms
include the selected tasks, total required payments and costs, and any additional
information and/or requirements specific to each Participating Agency. The annual
Election Forms may also be used to tailor the types and amounts of WLC Services
that each Participating Agency will receive, as well as the costs. The Election Forms
are attached as Addenda A and B to this Agreement.
F. At the end of each year, the Participating Agency may change the WLC Services that
it elects to receive for the following year by completing the annual Election Forms
under this Agreement.
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G. The Parties desire to enter into this Agreement, whereby the Participating Agency
elects to receive, on the terms and conditions described herein, the water loss control
shared services provided by MWDOC.
NOW THEREFORE, in consideration of the promises and covenants hereinafter set
forth, the Parties do agree as follows:
TERMS
1. Scope of Services. MWDOC will provide the Participating Agency with the water loss
control Shared Services and Technical Assistance identified in the Election Forms
attached hereto as Addenda A and B. The actual scheduling of Shared Services and/or
Technical Assistance shall be done only upon request of the Participating Agency. The
Parties agree that MWDOC may provide the WLC Services by utilizing MWDOC staff or
Contractors as determined by MWDOC.
2. Term of Agreement. This Agreement will be effective on July 1, 2026, and shall terminate
on June 30, 2036 ("Term")
3. Administration of Consultant and Contractors. MWDOC will provide project management
assistance regarding all Contractors and the Consultant, which includes working closely
with and managing Contractors and Consultant to ensure compliance with any
agreements, facilitating interactions between the Participating Agency and Consultant
and/or Contractors, and communicating regularly with the Participating Agency regarding
the Shared Services and/or Technical Assistance, as needed.
3.1.MWDOC shall make payments to any Contractor and/or Consultant on a time and
materials basis.
3.2. Participating Agency shall provide all documents, information, and assistance
requested by any Contractor and/or Consultant during the performance of the WLC
Services.
3.3.Addenda A and B are incorporated into this Agreement by reference and include
separate attachments for Participating Agencies that include the selected tasks, total
required payments and costs, and any additional information and requirements that
are specific to each Participating Agency.
3.4.Addenda A and B may be updated as Member Agencies execute this Agreement and
become Participating Agencies or pursuant to mutual agreement between a
respective Participating Agency and MWDOC.
4. Annual Election Addenda. Prior to July 1 of each year of the Agreement and consistent
with the requirements of this Section, Participating Agency may change the Shared
Services and/or Technical Assistance that it elects to receive for the following fiscal year
July 1 — June 30) by completing the annual Election Forms, which will replace and
become new Addenda A and/or B to this Agreement ("Election Addenda" or "Election
Addendum"). The Election Addenda may contain terms that differ from those in the initial
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Election Forms, including adjustments to service types and the addition of new WLC
Services as they become available.
5. Cost Sharing by Participating Agencies.
5.1 .MWDOC shall:
5.1.1. Collect from Participating Agency upon execution of this Agreement the amount
indicated in Addenda A and B that is specific to said Participating Agency, which
is the total cost of the selected WLC Services for the Participating Agency.
5.1.2. Inform the Participating Agency of any proposed extra work that would result in
an increase in the payments under this Agreement. MWDOC and the Participating
Agency must both approve such extra work before MWDOC will notify any
Contractor or Consultant to proceed with the work.
5.1.3. On or about February of each year, prepare a final annual accounting for the
Participating Agency and either distribute any remaining funds collected back to
the Participating Agency, consistent with the amounts in Addenda A and B, roll
over any remaining funds for use by the Participating Agency in the following year
or, when there are funds due, issue a final bill to the Participating Agency.
5.2. Participating Agency shall:
5.2.1. Pay to MWDOC upon execution of this Agreement, the full amount indicated in
Addenda A and B that is specific to the Participating Agency.
5.2.2. Pay to MWDOC, upon approval of any extra work, the full amount owed for any
approved extra work. The Participating Agency shall bear all costs associated
with extra work it approves.
6. Pricing and Payment. Participating Agency shall pay MWDOC for the WLC Services
provided pursuant to this Agreement in the unit cost amounts for each type of elected
WLC Service as set forth in Addenda A and B. The unit costs in Addenda A and B may be
adjusted each year by MWDOC in MWDOC's discretion. MWDOC will provide each
Participating Agency with notice of any changes to unit costs for the next fiscal year by
March 1 of the previous fiscal year, and such adjusted costs shall be reflected in the
Election Addenda. With respect to WLC Services that are provided by
Contractors/Consultants who are under contract with MWDOC, MWDOC reserves the
right to change the unit cost for such WLC Services if there is a change in unit cost by the
Contractor, provided, however, that MWDOC gives the Participating Agency no less than
sixty (60) days' notice of such change, during which period the Participating Agency may
elect to terminate such WLC Services from the Election Addenda. In addition,
Participating Agency is not obligated to request any WLC Services and is only required to
pay for WLC Services performed by MWDOC at the request of Participating Agency.
7. Billing Procedure and Payment. Within thirty (30) days of receiving Addenda A and/or B,
MWDOC shall invoice the Participating Agency for the full unit cost of the WLC Services
that have been chosen by the Participating Agency for the upcoming fiscal year.
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Participating Agency shall pay MWDOC within thirty (30) days of receipt of the invoice. In
the event that there is a subsequent change in the scope of the WLC Services that were
elected in Addenda A and/or B, MWDOC will provide a revised invoice for such change,
and in the event that the change results in a credit to the Participating Agency, then the
Participating Agency will have the option to apply the credit to the annual invoice for the
next fiscal year or to be issued a refund.
8. Termination. Either Party may terminate this Agreement upon thirty (30) days' written
notice to the other. In such an event, the Parties shall be responsible to each other for any
obligations incurred prior to the termination date.
9. Standard of Care. MWDOC will require that all Contractor and/or Consultant services be
performed in accordance with generally accepted professional practices and principles,
and in a manner consistent with the level of care and skill ordinarily exercised in
performing the WLC Services.
10.Accountinq. MWDOC shall, for a reasonable time, keep accurate and detailed records of
the WLC Services performed and the financial details in connection with such WLC
Services, including all accounting books and records related to any payments to
Contractors/Consultants (collectively, the "Records"). All Records must be maintained in
accordance with generally accepted accounting principles applicable to local government
agencies in the State of California and must be sufficiently complete and detailed to
permit an accurate evaluation of the Services provided by MWDOC under this Agreement.
Upon request from the Participating Agency, MWDOC will provide copies of the
Contractor/Consultant invoices and MWDOC's payment records, and shall give the
Participating Agency reasonable access, during normal business hours, to such Records.
11.Independent Contractor. The Consultant/Contractor is not a party to this Agreement and is
not an employee or agent of MWDOC or any of the Participating Agencies, either as a
result of this Agreement or because of the Consultant Agreement between MWDOC and
the Consultant/Contractor. The Consultant/Contractor is an independent contractor to
MWDOC.
12.Indemnification. MWDOC agrees to indemnify and hold the Participating Agency harmless
from any and all claims, demands, causes of action, costs, expenses, liability, loss,
damage or injury of any kind, in law or equity, to property or persons, including wrongful
death (collectively, "Claims"), in any manner arising out of any sole and active negligent
acts or willful misconduct of MWDOC in connection with the provision of WLC Services.
MWDOC will require any Contractors/Consultants to indemnify and hold harmless
Participating Agency from any and all Claims arising out of the negligent acts or willful
misconduct of the Contractor/Consultant, its agents and employees, and Participating
Agency agrees that it will look solely to the Contractor/Consultant for such Claims,
provided, however, that MWDOC will act as the agent of the Participating Agency to
enforce the terms of the indemnity with Contractor/Consultant and make any related
insurance claims with respect to the insurance coverage provided by
Contractor/Consultant. .
MWDOC shall use its best efforts in administering the Consultant Agreement, but makes
no representations, guarantees, or warranties to the Participating Agency as to the quality
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or timeliness of work product provided by the Consultant/Contractor pursuant to the
Consultant Agreement. The Participating Agency agrees to indemnify MWDOC, its
directors, officers, employees and agents against, and will hold and save them harmless
from, any and all actions, claims, penalties, obligations or liabilities, in law or in equity, of
every kind or nature whatsoever, that may be asserted or claimed by any person, firm,
entity, corporation, political subdivision or other organization arising out of or in any
manner directly or indirectly connected with the Consultant Agreement or E Source
Services provided for the benefit of the Participating Agency. Participating Agency agrees
and acknowledges that MWDOC is not responsible for the maintenance and quality of any
of Participating Agency's facilities, and Participating Agency is responsible for any costs,
expenses, liability, loss, damage, or injury of any kind, in law or equity, to property or
persons, including wrongful death, arising from such.
13.Insurance. MWDOC shall obtain prior to commencing work and maintain in force and
effect throughout the term of this Agreement, all insurance set forth below. MWDOC
insurance is provided through the Association of California Water Agencies Joint Powers
Insurance Authority and such other insurers as MWDOC may determine from time to time.
13.1.Workers' Compensation Insurance. MWDOC will maintain workers'
compensation insurance for its employees, covering all work covered by this
Agreement, in accordance with applicable law. Upon request, MWDOC will provide an
ACORD certificate of insurance or other certificate of insurance satisfactory to the
Participating Agency, evidencing such coverage.
13.2.Liability and Other Insurance. MWDOC will maintain during the term of this
Agreement general liability coverage of not less than $1,000,000 per occurrence for
bodily injury, personal injury and property damage; automobile liability (owned,
scheduled, non-owned or hired) of at least $1,000,000 for bodily injury and property
damage each accident limit; workers' compensation (statutory limits) and employer's
liability ($1,000,000) (if applicable); requiring 30 days (10 days for non-payment of
premium) notice of cancellation to Participating Agency.
13.3.Contractor Insurance Coverage. If MWDOC employs Contractors to provide
services covered by this Agreement, MWDOC shall require that each Contractor meet
MWDOC's minimum insurance requirements. Contractor will provide a certificate of
insurance to MWDOC, which will be required to name MWDOC and Participating
Agencies as additional insureds to any Consultant or Contractor's liability coverage.
13.4.Expiration of Coverage. If any of the required coverages expire during the
term of the Agreement, MWDOC and its Contractors, as applicable, shall provide
updated renewal certificate(s), including the general liability additional insured
endorsement, at least ten (10) days prior to the expiration date.
14.Independent Contractor. MWDOC shall act as an independent contractor in the
performance of the WLC Services provided for in this Agreement and shall furnish such
WLC Services in MWDOC's own manner and method, and in no respect shall MWDOC or
any of its agents be considered an agent or employee of Participating Agency. No
provisions of this Agreement shall be intended to create a partnership or joint venture
between MWDOC or any of its agents and Participating Agency, and neither Party shall
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have the power to bind or obligate the other Party, except as expressly set forth in this
Agreement.
15.Notices. All notices permitted or required under this Agreement shall be given to the
respective parties at the following addresses, or at such other address as the respective
parties may provide in writing for this purpose. Such notice shall be deemed made when
personally delivered or sent via commercial overnight courier and shall be effective upon
receipt. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
MWDOC: Participating Agency:
Harvey De La Torre, General Manager Jarad L. Hildenbrand, City Manager
Municipal Water District of Orange County City of Orange, a municipal corporation
18700 Ward St. 300 E. Chapman Avenue
P.O. Box 20895 Orange, CA 92866
Fountain Valley, CA 92728
16.Jurisdiction and Venue. In all matters concerning the validity, interpretation, performance,
or effect of this Agreement, the laws of the State of California shall govern and be
applicable. The Parties hereby agree and consent to the exclusive jurisdiction of the
courts of the State of California, and that venue of any action brought hereunder shall be
in Orange County, California.
17.Counterparts and Facsimile. This Agreement may be executed by the Parties in
counterparts, which counterparts shall be construed together and have the same effect as
if all the Parties had executed the same instrument. Counterpart signatures may be
transmitted by facsimile, email, or other electronic means and have the same force and
effect as if they were original signatures. All parties have participated in the drafting of this
Agreement.
18.Severability. If any provision of this Agreement shall be held illegal, invalid, or
unenforceable, in whole or in part, the legality, validity, and enforceability of the remaining
provisions shall not be affected thereby.
19.Entire Agreement. This Agreement contains the entire agreement of the Parties relating to
the subject matter hereof, and the Parties have made no agreements, representations, or
warranties, either written or oral, relating to the subject matter hereof that are not set forth
herein. Except as provided herein, this Agreement may not be modified or altered without
prior written approval from both parties.
20.Authority to Execute. Each Party represents and warrants to the other Party that all
necessary action has been taken by such Party to authorize the undersigned to execute
this Agreement and to bind it to the performance of its obligations hereunder.
21.Incorporation of Recitals. The Recitals and section titles set forth herein are incorporated
herein and are an operative part of this Agreement.
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IN WITNESS WHEREOF, the Parties have hereunto affixed their names as of the day
and year thereinafter written, which shall be and is the effective date of this Agreement.
MWDOC: PARTICIPATING AGENCY:
5Do.
Signal w igned or
allovAi IA,ta.11m-
OBOEStt 78.,2
Date 4/22/2026 13:45 PM PDT Date 4/9/26
Harvey De La Torre Name: Jarad L. Hildenbrand
General Manager Title: City Manager
Municipal Water District of Orange County Agency:
Approved as to Form: Approved as to Form
CiOStftw tr.L CCovaterF978990/4k
Date 4/22/2026 I 3:22 PM PDT Date 03/25/2026
Name: Joseph Byrne, Esq. Name: Connor Hyland
Senior Assistant City Attorney J
ATTEST:
ameba oleman, City Clerk
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