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HomeMy WebLinkAbout06/06/2000, C4 & C5 - APPROVAL OF INCREASE IN SELF-INSURED RETENTION FOR LIABILITY INSURANCE FROM $100,000 TO $250,000 & SANITARY SURVEY UPDATES AND INTER AGENCY AGREEMENTS j ac En as Report ImmN=bw C4 C I T Y OF SAN LUIS OBISPO FROM: Ann Slate,Director of Human Resources Prepared By: Karen Jenny,Risk Manager SUBJECT: APPROVAL OF INCREASE IN SELF-INSURED RETENTION FOR LIABILITY INSURANCE FROM$100,000 TO $250,000 CAO RECOMMENDATION Approve increasing the self-insured retention for liability insurance from $100,000 to $250,000 per claim. DISCUSSION The City is self-insured through the Central Coast Cities Self Insurance Fund(CCCSIF)for the first$100,000 for liability claims,which include bodily injury,personal injury and property damage to the public. Through the CCCSIF,the City purchases excess liability insurance coverage for claims which incur investigation,defense and/or settlement costs over$100,000. Over the past seven years,we have paid an average of$609,000 per year for the cost of claims, administrative charges and the cost of purchasing excess liability insurance. During that same time frame we received an average of 74 claims per year. In the past ten years only three claims have incurred costs between the current$100,000 self-insured retention limit and the proposed $250,000 limit. Only one claim exceeded$250,000. In other words, an average of one claim every 2.5 years has been referred to the liability insurance carrier. Only five claims have come close to $100,000 in incurred costs over the past ten years. CONCURRENCES The Finance Director concurs with this recommendation. FISCAL IMPACT The current quote for the liability program for fiscal year 2000-01 includes an option to increase the self-insured retentioa limit from$100,000 to$250,000. This will result in a net savings to the liability program of$83,000 for fiscal year 2000-01. Assuming the same claims experience as we have had over the last ten years, increasing the self-insured retention to $250,000 would provide ongoing savings for the general fund. ALTERNATIVES Continue with the self-insured retention at $100,000 and pay insurance premiums for a higher level of excess liability insurance. Based on our claims experience over the last ten years, this alternative is not recommended. C44 ' council June 6, 2000 j acyenba Repout "� C5 CITY O F SAN LUIS O B I S P O FROM: John Moss,Utilities Directo &7� Prepared by: Dan Gilmore,Utilities En SUBJECT: SANITARY SURVEY UPDATES AND INTER-AGENCY AGREEMENTS CAO RECOMMENDATION: Approve the request for proposals and inter-agency agreements for the preparation of two new Sanitary Surveys and five Sanitary Survey Updates, and authorize the CAO to award the consultant services contract and execute the agreements if the selected consultant proposal is within the project budget. DISCUSSION: Background Article 7 of the Surface Water Treatment Regulation (SWTR) outlines the requirements for watershed sanitary surveys. Section 64665(a) of the SWTR mandates that all water suppliers shall complete a sanitary survey of each supply watershed at least every five years. The first survey was completed by January 1, 1996. The five-year update to the sanitary survey is due by January 1, 2001. The surveys are to be submitted to and certified by the State of California Department of Health Services(DHS). The sanitary survey reports include information about the physical and hydrogeological properties of the watershed, source water quality monitoring data, activities and sources of contamination, watershed control and management practices, and any significant changes that have occurred since the last survey that could affect the quality of the source water. The American Water Works Association (AWWA) in conjunction with DHS has produced a guide for conducting Sanitary Surveys. With the approval of the original sanitary surveys, DHS provided recommendations for the content of the updates. These guidelines will be used by the selected consultant to produce the required documents. Project Workscope The City is responsible for updating sanitary surveys for the Salinas Reservoir and Whale Rock Reservoir watersheds. The Atascadero Mutual Water Company (AMWC) participated with the City in the preparation of the sanitary survey for the Salinas Reservoir watershed. Atascadero is responsible for the entire watershed upstream of their wells. The City shares responsibility for the upper portion of the watershed,the portion upstream of the Salinas Dam. With respect to Whale Rock, the City shares this responsibility with the other members of the Whale Rock Commission. The requirement also applies to water agencies extracting water from the basin downstream from the limit of the City's responsibility. 'As a result of this, several agencies share the responsibility for producing and updating each of these sanitary survey documents. C5-1 Council Agenda Report—Sanitary Survey Updates and Inter-agency Agreements Page 2 California Men's Colony (CMC) and the City are in a similar situation, regarding their sanitary survey requirements. CMC and the City are both responsible for the preparation and updates of sanitary surveys for more than one watershed. CMC is responsible for the Chorro Reservoir watershed, which contributes to their water supply. And, as a member of the Whale Rock Commission, CMC shares the responsibility of the Whale Rock watershed with the City and Cal Poly. In addition, the DHS is now requiring the Cayucos Area Water Organization (CAWO) to study the area between their wells and Whale Rock Dam. Because of the relationships between the various agencies, and the similarity of the requirements, it was determined that a cooperative approach would be the most beneficial. It is expected that the lowest overall cost will be achieved by combining the efforts of the agencies involved in completing the required reports and documentation. The sanitary survey reports that are required for the CAWO Wells and the Margarita Wells will be developed to the requirements of the Department of Health Services — Drinking Water Field Operations Branch (DHS-DWFOB), as will the five-year updates that are sought by the attached Request for Proposals(RFP). The reports document activities and features in the watersheds,which could potentially lead to contamination of the surface and groundwater supplies. The consultant is also required to make conclusions and recommendations for follow-up monitoring and reporting of potential hazards. The RFP has been developed with the assistance of the other agencies involved in this project. These agencies have also approved the issuance of the RFP. Once approved by Council, the RFP will be issued and proposals received. The proposals will be reviewed by a panel consisting of representatives from each of the participating agencies. Following the selection of a consultant,the participating agencies will execute agreements with the City, and the CAO will award the contract to the selected consultant. The required work sought by this RFP is due to be complete and submitted to the DHS by December 31,2000. Work performed by the consultant on this project will be invoiced monthly and will be paid by the City. Each agency participating in the project will reimburse the City for their fair share of these costs. The amounts to be paid to the consultant will be paid by the City in accordance with the consultant services agreement and the consultant's proposal. The reimbursements by each of the other participating agencies will be paid in accordance with each corresponding inter-agency agreement. CONCURRENCES: Each of the agencies identified above have reviewed and approved the attached RFP and their corresponding inter-agency agreements. Each agency concurs with the City's approach to fulfilling these requirements. FISCAL IMPACT: The line item detail for the Water Treatment—Contract Services account in the 1999-01 Financial Plan contains $10,000 that was identified specifically for the Salinas Reservoir portion of this project. Similarly, the Whale Rock budget has an additional $5,000 to support the portion of this C5-2 Council Agenda Report—Sanitary Survey Updates and Inter-agency Agreements Page 3 project that is attributable to Whale Rock Reservoir. Once approved by Council, each of the agencies participating in the project will execute an agreement with the City,which provides for the reimbursement of each agency's fair share of the project costs. ALTERNATIVES: Modify the approach. The City could proceed with the fulfillment of our specific requirements without the participation of the other agencies identified above. This alternative is not recommended, as the cooperative approach is expected to result in significantly reduced costs for the City. ATTACHMENTS: Attachment 1 —Description of Work Attachment 2—Agreement with Atascadero Mutual Water Company Attachment 3—Agreement with California Men's Colony Attachment 4—Agreement with the Cayucos Area Water Organization Attachment 5—Agreement with San Luis Obispo County The complete Request for Proposals is available in the Council Reading File. C5-3 �rTAc.►+rVtCa�tT l Section A DESCRIPTION OF WORK ',Ff..Y _ ',�-'.r� .� yss..:.;ae :�'+.6. The City is requesting proposals for the preparation of two Sanitary Surveys and five Sanitary Survey Updates pursuant to the requirements of the Department of Health Services — Drinking Water Field Operations Branch (DHS-DWFOB). The Sanitary Surveys and updates shall include the following features: 1. CAWO WELLS SANITARY SURVEY Prepare a Sanitary Survey meeting all the requirements of the DHS-DWFOB. i) The Sanitary Surveys shall conform to the guidelines prepared by the American Water Works Association (AWWA) - Source Water Quality Committee in their Watershed Sanitary Survey Guidance Manual,which is available through AWWA,and considered a part hereof. For a copy of the guidance manual, please fax a request to AWWA at(909) 930-1204. ii) Provide an evaluation of the system's ability to comply with the upcoming Interim Enhanced Surface Water Treatment Rule (IESWTR) and the Disinfection Byproducts Rule(D/DBR). Provide findings,a conclusion, and recommendations. iii) Complete the Drinking Water Source Water Assessment Program (DWSAP) documents and forms. All documents can be obtained from the DHS web site, located at www.dhs.cahwnet.gov/ps/ddwem.index.htm. 2. MARGARITA WELLS SANITARY SURVEY Prepare a Sanitary Survey meeting all the requirements of the DHS-DWFOB. i) The Sanitary Surveys shall conform to the guidelines prepared by the American Water Works Association (AWWA) - Source Water Quality Committee in their Watershed Sanitary Survey Guidance Manual,which is available through AWWA,and considered a part hereof. For a copy of the guidance manual, please fax a request to AWWA at(909) 930-1204. ii) The work shall also include any supplemental requirements, such as any applicable requirements for the five-year Sanitary Survey Updates, to the satisfaction of the DHS- DWFOB. iii) Complete the Drinking Water Source Water Assessment Program (DWSAP) documents and forms. All documents can be obtained from the DHS web site, located at www.dhs.cahwnet.gov/ps/ddwem.index.htm. C5-4 AiTAC4KGWT l 3. SALINAS RESERVOIR SANITARY SURVEY UPDATE Prepare a Sanitary Survey Update meeting all the requirements of the DHS-DWFOB. i) The Sanitary Survey Update shall address the recommendations of the DHS-DWFOB issued with the acceptance of the Salinas Reservoir (Upper Salinas) Sanitary Survey, in their letter dated August 9, 1996 (included in Appendix A). The original Sanitary Survey document, dated January 1, 1996, was prepared by Metcalf & Eddy and is available for review at the City of San Luis Obispo Utilities Department Office. ii) The Sanitary Survey Update shall meet all requirements and address the requests of the DHS-DWFOB, as identified in their letter dated December 14, 1999 (included in Appendix A), including an evaluation of the system's ability to comply with the upcoming Interim Enhanced Surface Water Treatment Rule (IESWTR) and the Disinfection Byproducts Rule, and the completion of the Drinking Water Source Water Assessment Program(DWSAP)documents and forms. 4. ATASCADERO WELLS SANITARY SURVEY UPDATE Prepare a Sanitary Survey Update meeting all the requirements of the DHS-DWFOB. i) The Sanitary Survey Update shall address the recommendations of the DHS-DWFOB issued with the acceptance of the Lower Salinas Watershed Sanitary Survey, in their letter dated February 5, 1997 (included in Appendix A). The original Sanitary Survey document, dated February 1996, was prepared by Metcalf& Eddy and is available for review at the City of San Luis Obispo Utilities Department Office. ii) The Sanitary Survey Update shall meet all requirements and address the requests of the DHS-DWFOB, as identified in their letter dated December 14, 1999 (included in Appendix A), including an evaluation of the system's ability to comply with the upcoming Interim Enhanced Surface Water Treatment Rule (IESWTR) and the Disinfection Byproducts Rule, and the completion of the Drinking Water Source Water Assessment Program(DWSAP)documents and forms. 5. WHALE ROCK RESERVOIR SANITARY SURVEY UPDATE Prepare a Sanitary Survey Update meeting all the requirements of the DHS-DWFOB. i) The Sanitary Survey Update shall address the recommendations of the DHS-DWFOB issued with the acceptance of the Whale Rock Reservoir Sanitary Survey, in their letter dated April 30, 1997 (included in Appendix A). The original Sanitary Survey document, dated January 1996, was prepared by Metcalf& Eddy and is available for review at the City of San Luis Obispo Utilities Department Office. ii) The Sanitary Survey Update shall meet all requirements and address the requests of the DHS-DWFOB, as identified in their letter dated December 14, 1999 (included in Appendix A), including an evaluation of the system's ability to comply with the upcoming Interim Enhanced Surface Water Treatment Rule (IESWTR) and the Disinfection Byproducts Rule, and the completion of the Drinking Water Source Water Assessment Program(DWSAP)documents and forms. C5-5 ATrAc.t m C4J T 6. LOPEZ LAKE AND TERMINAL RESERVOIR SANITARY SURVEY UPDATE Prepare a Sanitary Survey Update meeting all the requirements of the DHS-DWFOB. i) The Sanitary Survey Update shall address the recommendations of the DHS-DWFOB issued with the acceptance of the Lopez Lake and Terminal Reservoir Sanitary Survey, in their letter dated April 25, 1997 (included in Appendix A). The original Sanitary Survey document, dated December 1995, was prepared by Boyle Engineering Corporation and is available for review at the City of San Luis Obispo Utilities Department Office. ii) The Sanitary Survey Update shall meet all requirements and address the requests of the DHS-DWFOB, as identified in their letter dated December 14, 1999 (included in Appendix A), including an evaluation of the system's ability to comply with the upcoming Interim Enhanced Surface Water Treatment Rule (IESWTR) and the Disinfection Byproducts Rule, and the completion of the Drinking Water Source Water Assessment Program(DWSAP)documents and forms. 7. CHORRO RESERVOIR SANITARY SURVEY UPDATE Prepare a Sanitary Survey Update meeting all the requirements of the DHS-DWFOB. i) The Sanitary Survey Update shall address the recommendations of the DHS-DWFOB issued with the acceptance of the Chorro Reservoir Sanitary Survey, in their letter dated May 19, 1997 (included in Appendix A). The original Sanitary Survey document, dated January 1, 1996, was prepared by Metcalf&Eddy and is available for review at the City of San Luis Obispo Utilities Department Office. ii) The Sanitary Survey Update shall meet all requirements and address the requests of the DHS-DWFOB, as identified in their letter dated December 14, 1999 (included in Appendix A); including an evaluation of the system's ability to comply with the . upcoming Interim Enhanced Surface Water Treatment Rule (IESWTR) and the Disinfection Byproducts Rule, and the completion of the Drinking Water Source Water Assessment Program(DWSAP)documents and forms. C5-6 l�Tf Rc H-t�l E u 7 z• AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND ATASCADERO MUTUAL WATER COMPANY CONCERNING COOPERATIVE SANITARY SURVEY UPDATE PROJECT This Agreement is made and entered into this day of ,2000 by and between the City of San Luis Obispo, a municipal corporation,hereinafter referred to as "City", and the Atascadero Mutual Water Company,hereinafter referred to as "AMWC". V; TNFI;CFTH: WHEREAS, the City and AMWC entered into an agreement on February 22, 1995 for the preparation of a Sanitary Survey for the Upper and Lower Salinas Watershed; and WHEREAS, the City and AMWC are being required by the State Department of Health Services to conduct an official five-year update to the Upper and Lower Salinas Watershed Sanitary Surveys; and WHEREAS, most of the Sanitary Survey Update requirements are common to both the City and AMWC; and WHEREAS, both the City and AMWC recognize the potential for cost savings by conducting a joint Sanitary Survey Update for the two portions of the Salinas Watershed; and WHEREAS, the City and AMWC are willing to enter into an Agreement for the cooperative participation in a consultant contract to perform the Sanitary Survey Updates; and WHEREAS, the City and AMWC have jointly interviewed and selected consultant to perform the Sanitary Survey Updates;and WHEREAS,the City and AMWC have agreed on the allocation of costs for each agency's share of the consultant's fee for the preparation of the Sanitary Survey Updates. NOW,THEREFORE,it is mutually agreed by the parties hereto as follows: 1. The City will enter into an agreement with the selected consultant to conduct the required Sanitary Survey Updates on terms satisfactory to both the City and AMWC. 2. Activities of the selected consultant shall be directed by the joint advisement of the City and AMWC. Any such directive shall be approved by one designated representative from each of the City and AMWC. C5-7 ATV P c J+M E N T z 3. The consultant will bill the City for all work associated with the Upper Salinas Watershed and Lower Salinas Watershed Sanitary Survey Updates. 4. The City will pay the consultant for all work associated with the Upper Salinas Watershed and Lower Salinas Watershed Sanitary Survey Updates. 5. AMWC will reimburse the City for all (100%) of the consultant service costs attributable to the Lower Salinas Watershed Sanitary Survey Update and half(50%) of the costs attributable to the Upper Salinas Watershed Sanitary Survey Update within thirty (30) days from the date each invoice is received by AMWC. 6.. Each party shall mutually indemnify and save harmless the other, their officers, agents, and employees from and against any and all claims, demands, liabilities, or judgments for personal injury or property damage arising out of the performance or attempt to perform any obligation under this Agreement. However, a party's mutual duty to indemnify and hold harmless shall not include any liability arising from the established sole active negligence or willful misconduct of the other party. 7. This Agreement may be terminated by either party by providing to the other party, in writing, thirty (30) days advance notice of said intent. Consultant shall be paid, in accordance with Paragraph 3 and Paragraph 4 herein, for all work completed by the consultant prior to the effective date of said termination. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year fust above written. APPROVED AS TO FORM: CITY OF SAN LUIS OBISPO, A Municipal Corporation By: By: Jeffrey G. Jorgensen, City Attorney John Dunn, City Administrative Officer ATASCADERO MUTUAL WATER COMPANY By: Ken Weathers, General Manager C5-8 PrfrflCI+MEN7 3 AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND CALIFORNIA MENS COLONY CONCERNING COOPERATIVE SANITARY SURVEY UPDATE PROJECT This Agreement is made and entered into this day of ,2000 by and between the City of San Luis Obispo, a municipal corporation,hereinafter referred to as "City", and the California Men's Colony, hereinafter referred to as "CMC". WTTNF.SSF.TH: WHEREAS, the City and CMC entered into an agreement on February 14, 1995 for the preparation of a Sanitary Survey for the Chorro Valley Watershed; and WHEREAS, CMC is being required by the State Department of Health Services to conduct an official five-year update to the Chorro Valley Watershed Sanitary Survey, and WHEREAS,the City is acting on behalf of the Whale Rock Commission; and WHEREAS, the City is conducting Sanitary Survey Updates for the Salinas and Whale Rock Watersheds; and WHEREAS,both the City and CMC recognize the.potential for cost savings by contracting with a single consultant for the preparation of multiple Sanitary Survey Updates; and WHEREAS, the City and CMC are willing to enter into an Agreement for the cooperative participation in a consultant contract to perform the Chorro Valley Sanitary Survey Update; and WHEREAS, the City and CMC have agreed to the allocation of costs for each agency's share of the consultant's fee for the preparation of the Sanitary Survey Updates. NOW,THEREFORE,it is mutually agreed by the parties hereto as follows: 1. The City will enter into an agreement with the selected consultant to conduct the required Sanitary Survey Updates. 2. Activities of the consultant shall be conducted under the joint advisement of the City and CMC. 3. The consultant will bill the City for the work performed on the Whale Rock Reservoir and Chorro Valley Sanitary Survey Updates. 4. The City will pay the consultant for the Whale Rock Reservoir C5-9 Atl'RcftM.Elu7' 3 Sanitary Survey Update and for the Chorro Valley Sanitary Survey Update. 5. CMC will reimburse the City for all consultant service costs attributable to the Chorro Valley Sanitary Survey Update within thirty(30) days from the date each invoice is received by CMC. 6. Through its financial contributions to the Whale Rock Commission, CMC will pay its fair share of the Whale Rock Reservoir Sanitary Survey Update. 7. The City and CMC shall mutually indemnify and save harmless the other, their officers, agents, and employees from and against any and all claims, demands, liabilities, or judgments for personal injury or property damage arising out of the performance or attempt to perform any obligation under this Agreement. However, a party's mutual duty to indemnify and hold harmless shall not include any liability arising from the established sole active negligence or willful misconduct of the other party. 8.. This Agreement may be terminated by either party by providing to the other party, in writing, thirty (30) days advance notice of said intent. Consultant shall be paid, in accordance with Paragraph 4 and Paragraph 5 herein, for all work completed by the consultant prior to the effective date of said termination. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. APPROVED AS TO FORM: CITY OF SAN LUIS OBISPO, A Municipal Corporation: By: By: Jeffrey G.Jorgensen, City Attorney John Dunn, City Administrative Officer CALIFORNIA MENS COLONY By: William Cook,Business Manager II C5-10 AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND CAYUCOS AREA WATER ORGANIZATION CONCERNING COOPERATIVE SANITARY SURVEY UPDATE PROJECT This Agreement is made and entered into this day of , 2000 by and between the City of San Luis Obispo, a municipal corporation, hereinafter referred to as "City", and the Cayucos Area Water Organization,hereinafter referred to as "CAWO". WTTNFCSF.TH; WHEREAS, the City has prepared a Sanitary Survey, dated January 1996, for the Whale Rock Reservoir Watershed; and WHEREAS, the City is being required by the State Department of Health Services to conduct an official five-year update to the Whale Rock Watershed Sanitary Survey, and WHEREAS, the CAWO is being required by the State Department of Health Services to prepare a Sanitary Survey of the watershed above their gallery of wells which are located below the Whale Rock Dam•, and WHEREAS, many of the Sanitary Survey and Sanitary Survey Update requirements are common to both the City and CAWO; and WHEREAS, both the City and CAWO recognize the potential for cost savings by retaining a single consultant to prepare the required Sanitary Survey and Sanitary Survey Update for the two portions of the Whale Rock Watershed; and WHEREAS, the City and CAWO are willing to enter into an Agreement for the cooperative participation in a consultant contract to perform the Sanitary Survey and Sanitary Survey Update; and WHEREAS, the City and CAWO have jointly interviewed and selected consultant to perform the required work in accordance with the request for proposals and the requirements of the State Department of Health Services. NOW,THEREFORE,it is mutually agreed by the parties hereto as follows: 1. The City will enter into an agreement with the selected consultant to conduct the required CAWO Wells Sanitary Survey and Whale Rock Watershed Sanitary Survey Update on terms satisfactory to both the City and CAWO. 2. Activities of the selected consultant shall be directed by the joint advisement of the City and CAWO. Any such directive shall be C5-11 �+rr�tt-n�E uT y approved by designated representatives from each of the City and CAWO. 3. The consultant will bill the City for all work associated with the Whale Rock Watershed Sanitary Survey Update and the CAWO Wells Sanitary Survey. 4. The City will pay the consultant for all work associated with the Whale Rock Watershed Sanitary Survey Update and the CAWO Wells Sanitary Survey. 5. CAWO will reimburse the City for all (100%) of the consultant service costs attributable to the CAWO Wells Sanitary Survey. 6. Each party shall mutually indemnify and save harmless the other, their officers, agents, and employees from and against any and all claims, demands, liabilities, or judgments for personal injury or property damage arising out of the performance or attempt to perform any obligation under this Agreement. However, a party's mutual duty to indemnify and hold harmless shall not include any liability arising from the established sole active negligence or willful misconduct of the other parry. 7. This Agreement may be terminated by either party by providing to the other party, in writing, thirty (30) days advance notice of said intent. Consultant shall be paid, in accordance with Paragraph 3 and Paragraph 4 herein, for all work completed by the consultant prior to the effective date of said termination. IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the day and year fust above written. APPROVED AS TO FORM: CITY OF SAN LUIS OBISPO, A Municipal Corporation By: By: Jeffrey G.Jorgensen, City Attorney John Dunn, City Administrative Officer CAYUCOS AREA WATER ORGANIZATION (CAWO) By: Bob Lyon,President C5-12 A-T Acifm6tc-r S AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE COUNTY OF SAN LUIS OBISPO CONCERNING COOPERATIVE SANITARY SURVEY UPDATE PROJECT This Agreement is made and entered into this day of ,2000 by and between the City of San Luis Obispo, a municipal corporation, hereinafter referred to as "City", and the County of San Luis Obispo,hereinafter referred to as "County". WiTNFSSFTH: WHEREAS, the City has prepared a Sanitary Survey for the Salinas Reservoir Watershed, and the County has prepared a Sanitary Survey for the Lopez Lake and Terminal Reservoir; and WHEREAS,the City and County are being required by the State Department of Health Services to conduct an official five-year update to the Sanitary Surveys; and WHEREAS, most of the Sanitary Survey Update requirements are common to both the City and County, and WHEREAS, the County is being required by the DHS to prepare a Sanitary Survey of the watershed above the County wells in Santa Margarita; and WHEREAS,both the City and County recognize the potential for cost savings by retaining a single consultant to perform the required Sanitary Survey and Sanitary Survey Updates; and WHEREAS, the City and County are willing to enter into an Agreement for the cooperative participation in a consultant contract to perform the Sanitary Survey and Sanitary Survey Updates; and WHEREAS,the City and County have jointly interviewed and selected consultant to perform the Sanitary Survey and Sanitary Survey Updates. . NOW,THEREFORE,it is mutually agreed by the parties hereto as follows: 1. The City will enter into an agreement with the selected consultant to conduct the required Sanitary Survey and Sanitary Survey Updates on terms satisfactory to both the City and County. 2. Activities of the selected consultant shall be directed by the joint advisement of the City and County. Any such directive shall be approved by designated representatives from each of the City and County. C5-13 PrTFAC l+M CAT S 3. The consultant will bill the City for all work associated with both of the Sanitary Survey Updates and the Margarita Wells Sanitary Survey. 4. The City will pay the consultant for all work associated with both the Sanitary Survey Updates and the Margarita Wells Sanitary Survey. 5. The County will reimburse the City for all (100%) of the consultant service costs attributable to the Lopez Lake and Terminal Reservoir Sanitary Survey Update and all (100%) of the consultant service costs attributable to the Margarita Wells Sanitary Survey within thirty(30)days from the date each invoice is received by the County. 6. Each party shall mutually indemnify and save harmless the other, their officers, agents, and employees from and against any and all claims, demands, liabilities, or judgments for personal injury or property damage arising out of the performance or attempt to perform any obligation under this Agreement. However, a party's mutual duty to indemnify and hold harmless shall not include any liability arising from the established sole active negligence or willful misconduct of the other party. 7. This Agreement may be terminated by either party by providing to the other party, in writing, thirty (30) days advance notice of said intent. Consultant shall be paid, in accordance with Paragraph 3 and Paragraph 4 herein, for all work completed by the consultant prior to the effective date of said termination. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. APPROVED AS TO FORM: CITY OF SAN LUIS OBISPO, A Municipal Corporation By: By: Jeffrey G.Jorgensen, City Attorney John Dunn, City Administrative Officer APPROVED AS TO FORM AND LEGAL COUNTY OF SAN LUIS OBISPO EFFECT: By: By: County Counsel C5-14