CC SR 20240604 F - Storm Drain Outlet Improvements at Ocean Crest Dr MOU
CITY COUNCIL MEETING DATE: 06/04/2024
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to enter into a new Memorandum of Understanding
between the City and the Seagate Villas Owners Association to replace an existing storm
drain pipe system.
RECOMMENDED COUNCIL ACTION:
(1) Authorize the Mayor to sign a Memorandum of Understanding (MOU) between the
City and the Seagate Villas Owners Association to share costs for the replacement
of an existing storm drain pipe system located at 6629 Ocean Crest Drive.
FISCAL IMPACT: If approved, the recommended City Council action commits the City
to reimburse the Seagate Villas Owners Association for the cost of
the City’s portion of the storm drain, not to exceed 20% of project
costs estimated at $85,000. The funding is included in the proposed
Fiscal Year 2024-25 Five-Year Capital Improvement Program under
Storm Drain Outlet Improvements, with funding from the CIP Fund.
VR
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): 330-400-8722-8802 (in FY 2024-25) (CIP Fund – Storm Drain Outlet Improvements at Ocean Crest)
ORIGINATED BY: David Copp, PE, Deputy Director of Public Works
REVIEWED BY: Ramzi Awwad, Director of Public Works
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Memorandum of Understanding Between the City and Seagate Villas
Homeowners Association (page A-1)
BACKGROUND:
In 2023, the Seagate Villas Homeowners Association (HOA) approached the City to
discuss a joint effort to replace an existing deteriorated drainage pipe, approximately 150
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feet in length, located at 6629 Ocean Crest Drive. As part of the initial discussions, City
Staff visited the location to assess the condition of the existing drainage pipe and
discovered several sections that were collapsed and no longer capable of conveying
stormwater collected from the catch basin at the street to the existing discharge location.
Figures 1 and 2 below show the location of the existing storm drain and the current
observed condition, respectively.
Figure 1: Existing Drainage Pipe at 6629 Ocean Crest Drive
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Figure 2: Observed Deterioration and Collapsed Sections of Existing Drainage Pipe
A land survey confirmed that a section of the drainage pipe is located within City property
and that an outlet structure is needed on City property to minimize erosion . As a result,
the City agreed to a cost-share of the project as approved by the City Council in the FY
2023-24 Capital Improvement Program (CIP) and included in the proposed FY 2024 -25
CIP. Therefore, Staff negotiated a Memorandum of Agreement (MOU) with the HOA for
the City to share an appropriate portion of the costs required to replace the drainage pipe
system as part of a new project.
DISCUSSION:
In 2022, the HOA engaged the services of an engineering firm to prepare a site survey
and design a direct replacement of the drainage pipe. The design was completed in early
2023 and approved for construction by the City’s Planning Division on June 19, 2023. The
final design includes two major scopes of work:
1. Replacement of the existing 150 linear feet of 24 -inch corrugated metal pipe with
new 24-inch corrugated high-density polyethylene pipe.
2. The installation of an energy-dissipating outlet structure connected to the terminus
of the drainage pipe.
Based on the location of part of the pipe within City property and the need for an energy -
dissipating structure on City property, Staff estimates the cost of improvements on City
property is approximately 20% of the overall cost of the project.
Following completion of the design, Staff and the HOA entered into discussions to
memorialize each party’s responsibilities and share of costs to replace the storm drain.
Based on the share of proposed improvements on City property, the MOU includes a
reimbursement by the City of 20% of the project costs, less the design. An estimated
breakdown of the project costs is provided in Table 1 below.
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Table 1: Estimated Breakdown of Project Cost
Project Scope HOA Share of
Project Costs ($)
City Share of
Project Costs ($) Totals
Management 20K 5K 25K
Construction 280K 70K 350K
Inspection 40K 10K 50K
Total 340K 85K 425K
Percentage of Shared Costs 80% 20%
The MOU designates the HOA as the responsible party to execute and complete the
drainage pipe system replacement project and provides for the agreement to remain in
effect after successful completion of the project to ensure that the drainage pipe system’s
lifecycle is supported by routine inspection and maintenance.
ADDITIONAL INFORMATION:
The project is covered by the City’s Natural Community Conservation Plan/Habitat
Conservation Plan (NCCP/HCP) permit. As provided in the MOU, the HOA and all hired
contractors and third parties as part of the project shall remain in compliance with
NCCP/HCP conditions including implementing the Habitat Impact Avoidance and
Minimization Measures for Covered Projects and Activities, and the Avoidance and
Minimization Measures for Covered Species outlined in the NCCP/HCP.
As coordinated with the Department of Recreation and Parks and the Palos Verdes
Peninsula Land Conservancy, approximately 0.002 acres of native habitat is estimated to
be impacted by the replacement work. The anticipated associated habitat restoration fees
are accounted for in the construction estimate tabulated above.
CONCLUSION:
The replacement of the drainage pipe system at 6629 Ocean Crest Drive is imperative to
restore and sustain effective drainage management for the section of watershed that it
serves, including public property and neighboring open space. The MOU represents a
sound investment in infrastructure jointly owned by public and private entities and
provides for the drainage pipe system’s lifecycle to be managed by way of a formally
established agreement.
Staff therefore recommends the City Council approve the MOU between the City and the
HOA.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available for
the City Council’s consideration:
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1. Do not approve the MOU.
2. Take other action, as deemed appropriate by the City Council.
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01203.0006/951717.1 1
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF RANCHO PALOS VERDES AND THE SEAGATE VILLAS OWNERS
ASSOCIATION
THIS MEMORANDUM OF UNDERSTANDING (“MOU”) is made and entered into on
_______________________, 2024, by and between the CITY OF RANCHO PALOS VERDES,
a California municipal corporation (“City”), and the SEAGATE VILLAS OWNERS
ASSOCIATION (“HOA”). City and HOA may be referred to, individually or collectively, as
“Party” or “Parties.”
RECITALS
A. City and HOA own a storm drain pipe (“Drainage Pipe”) located at 6629 Ocean
Crest Drive (See Exhibit “A”, attached hereto and incorporated herein by reference, for depiction
of location of Drainage Pipe.) The Drainage Pipe is in need of replacement because the existing
storm drain has deteriorated and is no longer functional. The replacement project will consist of
removal and replacement of the existing Drainage Pipe with a new drainage pipe and Outlet
Structure as designed by a professional engineer registered in the State of California.
B. Of the total length of the existing drainage pipe 5 linear feet are located within
public property and approximately 150 linear feet are within HOA property. The entire pipeline
connects to a common outlet downstream.
C. HOA will be responsible for the costs to execute and complete the replacement,
including, but not limited to the following: hiring consultants, hiring engineering services, hiring
a construction contractor and hiring an Inspector. City will contribute an amount of 20% of such
costs which is based on the extent of the above-described replacement work verified by the City
to be within the limits of public property.
D. This project will be covered by the City’s Natural Communities Conservation
Plan/Habitat Conservation Plan (NCCP/HCP) permit. Benefits of coverage include streamlined
environmental review and reduced costs associated with environmental permitting. To maintain
coverage, the HOA and all hired contractors and third parties shall remain in compliance with
NCCP/HCP conditions including implementing the Habitat Impact Avoidance and Minimization
Measures for Covered Projects and Activities, and the Avoidance and Minimization Measures for
Covered Species outlined in the NCCP/HCP.
E. Labor Code Section 1720(c)(3)(A) provides that “if the state or a political
subdivision reimburses a private developer for costs that would normally be borne by the public,
…, an otherwise private development project shall not thereby become subject to [the payment of
prevailing wages in accordance with] this chapter.”
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01203.0006/951717.1 2
AGREEMENT
NOW, THEREFORE, in consideration of the mutual benefits to be derived by the Parties,
and of the promises contained in this MOU, the Parties agree as follows:
1. Recitals. The recitals set forth above are incorporated into this MOU.
2. Purpose. The purpose of this MOU is to establish an understanding of each Party’s
responsibilities for the replacement of the Drainage Pipe (“Replacement”).
3. Term. This MOU shall survive and remain in effect after the successful completion
of the Replacement.
4. Responsibilities of the Parties.
4.1 CITY. City agrees to do the following:
(a) Reimburse HOA in the amount of 20% of the total cost of the
project, excluding design fees, but including remaining project
related fees and permits, following successful completion of the
items described in section 4.2 below.
(b) Waive all fees related to the review of the plans.
(c) Carry out customary inspection and maintenance of the Drainage
Pipe and Outlet Structure.
(d) City shall promptly review, process and endeavor to pay for the
HOA’s invoice identified in Section 4.2 (g) below, within 45 days
of submission of such invoice.
(e) City shall grant an appropriate right of way to Contractor to
occupy public property adjacent and nearby the storm drain, to the
extent necessary to access the drainage pipe and complete the
Replacement.
4.2 HOA. HOA agrees to do the following:
(a) Provide Plans to the City in accordance with section 4.1(b) above,
which shall be stamped by a professional engineer registered in the
State of California.
(b) Obtain all permits and clearances necessary to begin construction,
including, but not limited to the construction permit and the
NCCP/HCP permit.
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(c) Implement all applicable terms and conditions of the City’s
NCCP/HCP permit, included as Exhibit “B”, as part of the project,
including the Habitat Impact Avoidance and Minimization
Measures for Covered Projects and Activities outlined in the
NCCP/HCP, and payment of the Habitat Mitigation Fee defined in
NCCP/HCP Section 5.3.4. HOA will coordinate with City and
third parties, and will provide reporting confirming compliance
with the NCCP/HCP.
(d) Solicit for and obtain at least three competing bids for the
Replacement. All bids shall be based on the final design,
associated permits necessary to begin construction, and an on-site
verification of the scope of the Replacement.
(e) Award a construction contract to a qualified and licensed general
contractor (“Contractor”).
(f) Oversee the Replacement work, which shall include the use of a
qualified Project Manager and Materials Testing Technician to
assure that construction is completed in accordance with the Plans;
and document construction using daily inspection reports and
materials testing reports.
(g) Provide to City copies of all documents necessary for the above
described City reimbursement, including but not limited to: plans,
specifications, construction documents, permits, requests for bids,
all bids received, executed contract with the Contractor, daily
inspection reports, materials testing reports, paid invoices to the
Contractor, paid invoices for the above described professional
services, and an invoice in a form with supporting documentation
acceptable to the City for reimbursement following completion of
the Replacement.
5. Termination and Default.
5.1 Default. Each Party shall have a reasonable opportunity to assert matters
which it believes have not been undertaken in accordance with the MOU, to explain the basis for
such assertion, and to receive from the other Party a justification of its position on such matters. If
any Party concludes that another Party has not complied in good faith with the terms of the MOU,
then such Party may issue a written notice of non-compliance (“Notice”) specifying the grounds
therefore and all facts demonstrating such non-compliance.
The Party receiving a Notice may contest the allegation of non-compliance or shall proceed
to cure the non-compliance within 30 days. If the Notice is contested, the Parties shall seek to
arrive at a mutually acceptable resolution of the matter(s) occasioning the Notice.
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If the non-compliance is not cured, or the Parties cannot reach a mutually acceptable
resolution within 60 days of the Notice, the Party giving such Notice shall determine the next
course of action, which may include the termination of the MOU. Each Party reserves the right to
terminate the MOU in the event of any default by the other Party, provided that the Party seeking
to terminate the MOU first provides Notice and an opportunity to cure in accordance with this
Section, and the Parties fail to reach a mutually acceptable resolution within 60 days of the Notice.
6. Notices. Any notice which either Party may desire to give to the other Party under
this MOU must be in writing and may be given by any commercially acceptable means, to the
addresses below:
CITY:
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275
Attention: Ramzi Awwad, Director of Public
Works
HOA:
Seagate Villas Owners Association
c/o McElroy Management Associates, Inc.
734 Silverspur Rd. #105
Rolling Hills Estates, CA 90274
7. Applicable Law; Venue. This MOU shall be interpreted, construed, and governed
both as to validity and to performance of the Parties in accordance with the laws of the State of
California. Legal actions concerning any dispute, claim or matter arising out of or in relation to
this MOU shall be instituted in the Superior Court of the County of Los Angeles, State of
California, or any other appropriate court in such county, and all Parties agree to submit to the
personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S.
District Court, venue shall lie exclusively in the Central District of California, in the County of
Los Angeles, State of California.
8. Relationship of the Parties. The Parties are, and shall at all times remain as to each
other, wholly independent entities. Neither Party to this MOU shall have power to incur any debt,
obligation, or liability on behalf of the other Party unless expressly provided by this MOU. No
employee, agent, or officer of a Party shall be deemed for any purpose whatsoever to be an agent,
employee, or officer of the other Party.
9. Binding Effect. This MOU shall be binding upon and shall be to the benefit of the
respective successors, heirs, and assigns of each Party; provided, however, no Party may assign its
respective rights or obligations under this MOU without prior written consent of the other Party.
10. Third-Party Beneficiaries. Nothing contained in this MOU will be construed to
create any rights in third parties and the Parties do not intend to create such rights.
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11. Indemnification. To the full extent permitted by law, HOA agrees to indemnify,
defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”)
against, and will hold and save them and each of them harmless from, any and all actions, either
judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses,
costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein
“claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of
or in connection with the negligent performance of the work, operations or activities provided
herein of HOA, its officers, employees, agents, subcontractors, invitees, or any individual or entity
for which HOA is legally liable (“indemnitors”), or arising from HOA’s or indemnitors’ reckless
or willful misconduct, or arising from HOA’s or indemnitors’ negligent performance of or failure
to perform any term, provision, covenant or condition of this Agreement, except claims or
liabilities occurring as a result of Indemnified Parties’ sole negligence or willful acts or omissions.
The indemnity obligation shall be binding on successors and assigns of HOA and shall survive
termination of this Agreement.
12. Attorneys’ Fees. In the event that any Party commences legal action of any kind or
character to either enforce the provisions of this MOU or to obtain damages for breach thereof, the
prevailing Party in such litigation will be entitled to all costs and reasonable attorneys’ fees
incurred in connection with such action.
13. Severability. If any provision of this MOU, or any portion thereof, is found by any
court of competent jurisdiction to be unenforceable or invalid for any reason, such provision will
be severable and will not in any way impair the enforceability of any other provision of this MOU.
14. Amendment. This MOU may be amended at any time by mutual agreement of the
Parties. Any amendment must be in writing and signed by both Parties.
15. Entire Agreement. This MOU constitutes the entire agreement between the Parties
relating to the subject of this MOU and supersedes all previous agreements, promises,
representations, understandings and negotiations, whether written or oral, among the Parties with
respect to the subject matter hereof.
16. Waiver. Waiver by any Party to this MOU of any term, condition, or covenant of
this MOU shall not constitute a waiver of any other term, condition, or covenant. Waiver by any
Party to any breach of the provisions of this MOU shall not constitute a waiver of any other
provision, nor a waiver of any subsequent breach or violation of any provision of this MOU.
17. Counterparts. This MOU may be executed in any number of counterparts, each of
which shall be an original, but all of which taken together shall constitute one and the same
instrument, provided, however, that such counterparts shall have been delivered to all Parties to
this MOU.
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