Loading...
SR - AGR-6301 - FINAL MASTER METERING WATER SYSTEMAGENDA ITEM :.4 a January 12, 2016 Ac0 om s CPy'� bDITY TO: Honorable Mayor and Members of the City Council THRU: Rick Otto City Manager FROM: Joe DeFrancesco, J� Public Works Di ector ReviewedNerified City Manager Finance Direct To Be Presented By: Joe DeFrancesco X Cons Calendar City Mgr Rpts Council Reports _ _ Legal Affairs Boards /Crates Noticed Hrgs Admin Reports _ Plan /Environ 1. SUBJECT Water System Agreement with the University of California Irvine Medical Center (UCIMC) to complete the final master metering of the Medical Center Main Campus. 2. SUMMARY The Water System Agreement authorizes the City to vacate the existing easement and transfer the unused Manchester Reservoir site to the University of California Irvine Medical Center in exchange for $2,000,000 (two million dollars) deposit to be used for the immediate construction of the final master metering of the UCIMC main Campus. 3. RECOMMENDED ACTION 1. Approve the Water System Agreement between the City of Orange and the University of California Irvine Medical Center ( "UCIMC "). 2. Authorize the Mayor to execute the easement quitclaim deed to transfer the Manchester Reservoir site to the UCIMC. 4. FISCAL IMPACT No direct fiscal impact. The City will benefit financially by not having to maintain the aging on- site water pipes located on the main UCIMC hospital campus. 5. STRATEGIC PLAN GOAL(S) I d. Provide for a safe community — Assure the development of the City occurs in a fashion that maximizes public safety. 2d. Be a fiscally healthy community — Effectively manage and develop City assets. ITEM - 1/12/16 QtPrinted on Recycled Paper 6. GENERAL PLAN IMPLEMENTATION Economic Development Element Goal 4.0 Encourage economic development efforts through outreach and maintenance of a pro- active business environment. Policy 4.3: Where appropriate, consolidate inadequately sized land or land owned by multiple owners into parcels suitable for integrated development with improved pedestrian and vehicular circulation. 7. DISCUSSION and BACKGROUND The City of Orange is the water provider to the UCIMC main campus and maintains numerous and extensive water facilities both surrounding and on the UCIMC main campus site. The City acquired all water facilities that run through and on site, from the county back in the 1970's. The UCIMC main campus site contains numerous medical buildings and facilities that have been in a continual state of change and upgrade for over a decade. Major improvements have included numerous new buildings and building improvements, improvements to parking and to the main entrance off of The City Drive and the construction of a new main hospital. In discussions with the medical center, more improvements and changes are planned for the site. To facilitate the continual building evolution on the campus, the Water Division, in coordination and collaboration with UCIMC, had "master metered" the eastern two - thirds of the campus in 2009. This solution provided specific engineered water supply points (master meters) designed to feed the campus and the future anticipated construction. This solution also effectively removed the City from maintaining private on -site water facilities on the eastern two - thirds of the campus, clearing the way for UCIMC to better utilize their on -site space to meet their specific needs. The master metering of the final western one -third of the site had been postponed at the request of UCIMC, pending current on -going construction and the finalization of the building vision for the site. In May 2014, UCIMC re- approached the City to continue discussions for the final master metering of the entire site. As part of the discussions, UCIMC is requesting the existing Manchester Reservoir site easement be vacated by the City as UCIMC would like to build a new chiller plant building on this site for the hospital complex. The Manchester Reservoir site and improvements were acquired by the City in 1973 by agreement (C -698) with the County. The City received an easement for the reservoir site and took ownership of the reservoir (subsurface water tank) that was built in 1962. The reservoir and accompanying pump station are the original county water system improvements designed to serve the county facilities exclusively, prior to the City acquiring them in the 1970s. When integrated into the City's water system, the existing Manchester Reservoir did not serve economically within the current water system parameters and as a result the reservoir has been "off line" for approximately the last 15 years and is not foreseen as being reinstated. Likewise, the reservoir site easement and water tank/pump station improvements are City assets and cannot be vacated and abandoned without just compensation. UCIMC and the City recognize each other's goals and needs, and are working collaboratively to achieve them. City staff estimates the master metering project and related work to cost approximately $1,500,000 - $1,700,000. UCIMC has agreed to deposit $2,000,000 with the City, to cover the entire cost to design and construct all final master metering improvements required ITEM 2 1/12/16 to complete the final master metering of the entire UCIMC site. Upon approval of the agreement, the City intends to immediately commence with the design and construction of the final master metering up to completion. In exchange for the funds, the City is to quitclaim the easement and improvements of the reservoir site to UCIMC. The money deposited with the City is to be used for the master metering project and related work. Any excess monies after the completion of the work shall be returned to UCIMC. Any costs incurred over $2,000,000 will be borne by the City. The Manchester Reservoir site easement is approximately 11,608 square feet in size (approximately a quarter acre). Being an easement for water delivery and storage purposes, the City cannot use the property for any other use. Since it was built over 50 years ago and not used for over 15 years, it is not up to current standards. With the easement being landlocked by the hospital complex, the only viable user of the easement property is the underlying fee owner of the property, UCIMC. Staff does not see any future need for the reservoir and recommends that city council approve the Water System Agreement and execute the easement quitclaim deed in exchange for a deposit of $2,000,000 to install the master metering and related work at the UCIMC hospital complex. 8. ATTACHMENTS • Water System Agreement between the City of Orange and the University of California Irvine Medical Center. • Easement Quitclaim Deed for Manchester Reservoir site. JD;mw;ly NAPublic Works \ADMIN \LYoung \Council Items \COUNCIL\Jan - 2016 \1- 12- 16\Agenda - UCIMC - Orange Water System Agmt (2).doc ITEM 3 1/12/16