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RES 2018-0200 - Agmt with MUD for well water distribution system of rolling meadows `�`1 ��°s., t (, I 1,- f Public Works Department e. ` cC- `a' n Omaha/Douglas Civic Center ���tirA .0 February27, 2018 ' �' z h � 1819 Farnam Street,Suite 601 o'z=A�y� _ ^ Omaha,Nebraska 68183-0601 �iO4~ (402)444-5220 +1r'D FEW) C I T M CL7 'A Fax(402)444-5248 City of Omaha '!.4 ^,1.{A, N i-,.., `•%'F A Robert G.Stubbe,P.E. Jean Stothert,Mayor Public Works Director Honorable President and Members of the City Council, Transmitted herewith is a Resolution approving a Water System Maintenance and Operation Agreement with the Metropolitan Utilities District of Omaha (MUD) regarding the temporary maintenance and operation of the existing well water distribution system in Rolling Meadows, formerly known as Sanitary and Improvement District 286 (S&ID 286). Upon annexation of S&ID 286, the City assumed ownership of the existing well water distribution system for the area. MUD, being the water and natural gas provider for the City, has agreed to the transfer of ownership of this system which will be executed through a separate project and ownership transfer agreement, currently contemplated to be complete by August, 2018. This Maintenance Agreement provides for the continued operation, including water quality testing and reporting, of the well water system by the third party provider previously utilized by S&ID 286. It further provides for the responsibilities of the City and MUD in regards to water main maintenance and instances of water main breaks. The Public Works Department requests your consideration and approval of the attached Resolution and Water System Maintenance Agreement. Respectfully submitted, Referred to City Council for Consideration: 0-4--i-Criat€4---- /.,"30-16) Titt, --kj- -1)4k. Z-1 57/1<- Robert G. Stubbe, P.E. Date Mayor's Office Date Public Works Director Approved as to Funding: Step B. Curtiss ate Finance Director ,-p 3118htp C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, the City of Omaha has recently annexed the residential subdivision named Rolling Meadows, formerly known as Sanitary and Improvement District 286 (S&ID 286), causing the City to become owner of the well water distribution system for this area; and, WHEREAS, the Metropolitan Utilities District of Omaha (MUD) is the water and natural gas supplier to the City, and intends, via a separate project and transfer agreement, to accept the transfer of said water distribution system for this area of the City; and, WHEREAS, the parties desire to enter into the attached Water System Maintenance and Operation Agreement, which by this reference is made part hereof, which delineates the roles and responsibilities of the City and MUD regarding the temporary utilization of the third party provider of certain maintenance services previously contracted for by S&ID 286, as well as other provisions for the continued operation of the water distribution system until such time as the transfer of ownership from the City to MUD is completed, currently intended for August, 2018. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT, as recommended by the Mayor, the Water System Maintenance and Operation Agreement between the City of Omaha and the Metropolitan Utilities District of Omaha (MUD) for the maintenance and continued operation of the well water distribution system of Rolling Meadows (formerly Sanitary and Improvement District 286), having a term to run until the ownership of the system is transferred, through a separate agreement, from the City to MUD, currently intended to occur in August of 2018, is hereby approved. 3117htp APPROVED AS TO FORM: t - a Z/c, l CITY TTORNEY DATE 41.1. olf 11)4A1'4,— By FEB27Z01g -�oumember Adopted ' ....,,CityClerk Approve Lek....�� CJ'Gt� ---tiLL- Mayor WATER SYSTEM MAINTENANCE AND OPERATION AGREEMENT THIS AGREEMENT, entered into this I & day of ') ntl , 2018, between the City of Omaha, a City of the Metropolitan Class of the State of Nebraska ("City"), and the Metropolitan Utilities District of Omaha, a municipal corporation and political subdivision of the State of Nebraska("District"), WITNESS: WHEREAS. Rolling Meadows ("Rolling Meadows") is a residential subdivision formally known as SID 286 ("SID 286") found Southwest of approximately 180th and Q Streets in Omaha, Douglas County,Nebraska. WHEREAS, the City annexed SID 286 on or about July, 2015 causing SID 286 to be incorporated into the City's limits. WHEREAS, Rolling Meadows, prior to the annexation, owned, operated, and maintained its own water distribution system including wells, water mains, service pipelines and all related valves, pumps and other equipment ("Water Distribution System"), that provides water to the residents of Rolling Meadows. WHEREAS, prior to the annexation, Rolling Meadows utilized People Service to operate the Water Distribution System which included ensuring all appropriate regulatory compliance of that Water Distribution System as well as operation and maintenance of all existing water wells. WHEREAS, the City is now the owner of the Water Distribution System pursuant to the annexation of SID 286 and further believes the Water Distribution System to be in good operation. 1 WHEREAS, the District is the water and natural gas supplier to the City and surrounding communities established and governed pursuant to Nebraska law. WHEREAS, the City desires and intends to transfer the ownership of the Water Distribution System to the District with such transfer to be completed by August, 2018. WHEREAS, the City desires People Service to continue the operation of the Water Distribution System until transfer to the District, and desires the District to commence efforts to maintain the Water Distribution System. NOW, THEREFORE, in consideration of the covenants and agreements set forth herein, the parties agree as follows: I. TRANSFER TO THE DISTRICT This Agreement is not intended to provide for the transfer of the Water Distribution System from the City to the District. That transfer will be handled under a separate agreement designated as such. Rather, this Agreement is intended to provide for the continued maintenance and operation of the Water Distribution System from the effective date of this Agreement until that transfer is completed and closed. The parties to this Agreement intend to complete and close that transfer by August, 2018. The term of this Agreement shall terminate upon such transfer to the District. II. CONTINUED OPERATION OF THE WATER DISTRIBUTION SYSTEM A. People Service will continue operation of the Water Distribution System including operation and control over the wells and pumps for system flushing. People Service's continued operation of the Water Distribution System includes meeting all required reporting to the Department of Health and Human Services until such point as the transfer of the Water Distribution System is completed. B. People Service will provide all appropriate and necessary water sampling for normal operation of the Water Distribution System back to operation. In case of a 2 water main break, the District will provide the bacteriological testing that is required to bring the main back into service. III. MAINTENANCE OF WATER MAINS A. The District shall maintain the Water Mains within the Water Distribution System from the effective date of this Agreement until the transfer contemplated in Section I of this Agreement. B. This District's agreement to maintain the Water Mains within the Water Distribution System shall not obligate the District to undertake any further efforts to maintain any other portion of the Water Distribution System. C. For purposes of this Agreement, the term Water Mains shall mean those water distribution pipelines greater than two inches (2") in diameter and shall not mean piping from the corporation to the inlet of a residence or commercial building. D. If the Water Distribution System requires maintenance beyond maintenance of the Water Mains, such maintenance will be the responsibility of the City until the closing date of the transfer as described in Section 1 of this Agreement. E. If the District determines that a Water Main is in need of repair as a result of a break or a leak during the term of this Agreement, it shall: 1. Notify the City of the need for repairs as soon as is practicable upon identification of the need for repairs. 2. Excavate, repair, flush and repair to grade and fill to grade the damaged or leaking portion of Water Main. 3. If, in the course of repairing a broken main, a valve or hydrant is found to be damaged or inoperable, the District will make those additional repairs. 3 4. Within thirty (30) days of the repair contemplated in Section III(E)(2) and Section III(E)(3) above, send the City an invoice of its costs based upon time and materials. 5. The City shall within thirty (30) days of receipt of the invoice, remit payment to the District for the costs described in Section III(E)(4) above. 6. The District shall not be responsible for any damages that may arise as a result of a Water Main break or a Water Main leak that may be claimed by a resident of Rolling Meadows. If a claim is made for losses arising out of a Water Main break or a Water Main leak, such claim shall be filed with the City which shall, in its sole discretion, determine resolution. The District will not be responsible for any damages arising out of a Water Main break or a Water Main leak. 7. The District shall not be responsible for damages associated with or repairs required by a water service line. Water service lines are the property and under control of the property owner. IV. ACKNOWLEDGEMENT OF CONTINUED WELL WATER A. The City acknowledges that until the transfer contemplated in Section I above is closed, the residents of Rolling Meadows will continue to receive well water and not District water. B. The District is not responsible to any resident of Rolling Meadows for damages or claims that may arise as a result of the continued use of well water. 4 V. INDEMNFICIATION A. To the extent of its liability under the Political Subdivisions Tort Claims Act, the District and the City each agrees to indemnify and hold harmless each other from any and all injuries, claims, demands, losses, liabilities,judgements, damages, costs, expenses, actions, and causes of action arising out of the negligent acts or omissions of the indemnifying party in regard to this Agreement, except to the extent caused, in whole or in part,by the acts of the indemnified party. VI. MISCELLANEOUS A. The District's President and the City represent that they are properly authorized to enter into this agreement by their respective governing bodies. B. This Agreement shall be governed in all respects by the laws of the State of Nebraska, and the venue for any litigation with respect hereto shall be in the courts of Douglas County, Nebraska. C. For purposes of determining the enforceability of this Agreement, electronic, digital and facsimile signatures shall be deemed originals, and this Agreement may be executed in any number of counterparts. IN WITNESS THEREOF, the parties execute this Agreement on the date first above written. METROPOLITAN UTILITIES DISTRICT OF OMAHA,NEBRASKA, CITY OF OMAHA a political Subdivision, By: c.e2, /� �j By 1 f Presi ent Mayor Approved as to Form: Approved as to Form: tIV\AA-\A(174/t --- 67-ZA lot ee SVP/General Counsel ,46/.Crt Attorney 5 NO. iLD Item Submitted By: Heather Tippey Pierce Department: Public Works Council Meeting Date: February 27, 2018 • Res. that, as recommended by the Mayor, the Water System Maintenance and Operation Agreement between the City of Omaha and the Metropolitan Utilities District of Omaha (MUD) for the maintenance and continued operation of the well water distribution system of Rolling Meadows (formerly Sanitary and Improvement District 286), having a term to run until the ownership of the system is transferred, through a separate agreement, from the City to MUD, currently intended to occur in August of 2018, is hereby approved. • Presented to City Council February 27, 2018 APPROVED 7-0 8IIzabeth Nutley City Clerk