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HomeMy WebLinkAbout06-05-2019 Operations Committee Meeting Agenda Packet Orange County Sanitation District Wednesday, June 5, 2019 Regular Meeting of the a 5:00 P.M. OPERATIONS COMMITTEE Administration Building Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 714 593-7433 AGENDA CALL TO ORDER PLEDGE OF ALLEGIANCE DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a Speaker's Form(located at the table outside of the Board Room)and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by the Chairman and are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. CONSENT CALENDAR: The Consent Calendar Items are considered routine and will be enacted,by the Committee, afterone motion, without discussion. Any items withdrawn from the Consent Calendarfor separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the Special meeting of the Operations Committee held on May 1, 2019. 2. PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE CONDENSER REPAIR, PROJECT NO. MP-257 (Kathy Millea) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a service contract to Manley's Boiler LLC for Plant No. 2 Central Generation Steam Turbine Condenser Repair, Project No. MP-257, Specification No. S-2019-101913D, for an amount not to exceed $289,900; and B. Approve a contingency of$57,980 (20%). 06/05/2019 Operations CommR ee Agenda Page 1 of 4 3. FLEET PURCHASE OF EIGHT SEDANS AND FOUR TRANSIT VANS (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a Purchase Order to National Auto Fleet Group for the purchase of four Toyota Prius sedans, four Nissan Leaf sedans, and four Ford Transit vans using Sourcewell (formerly National Joint Powers Alliance) Cooperative Contract No. 120716-NAF for a total amount not to exceed $361,554; and B. Approve a contingency of$18,078 (5%). 4. PLANT NO. 2 TRICKLING FILTER CLARIFIER "E" REPAIR (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a Sole Source Purchase Order to Ovivo USA, LLC to refurbish and repair Trickling Filter Clarifier"E" rotating scum skimmer troughs, sludge ducts and their associated components for a total amount not to exceed $190,280; B. Approve a contingency of$38,056 (20%); and C. Approve Amendment to Orange County Sanitation District Purchase Order Terms and Conditions. NON-CONSENT: 5. PLANT NO. 2 SECONDARY CLARIFIER REPAIRS, PROJECT NO. MP-248 (Kathy Millea) RECOMMENDATION: Recommend to the Board of Directors to: A. Receive and file Bid Tabulation and Recommendation for Plant No. 2 Secondary Clarifier Repairs, Project No. MP-248; B. Award a Construction Contract to W.M. Lyles for Plant No. 2 Secondary Clarifier Repairs, Project No. MP-248, for a total amount not to exceed $3,048,000; and C. Approve a contingency of$304,800 (10%). 6. PLANT NO. 1 ICS NETWORK EXTENSION, PROJECT NO. FE17-05 (Kathy Millea) RECOMMENDATION: Recommend to the Board of Directors to: 06/05/2019 Operations CommR ee Agenda Page 2 of 4 A. Receive and file Bid Tabulation and Recommendation for Plant No. 1 ICS Network Extension, Project No. FE17-05; B. Receive and file Clarification Request No. 2 issued to CDC Engineering and Technology on April 29, 2019; C. Receive and file ODC's response to Clarification Request No. 2 received by the Orange County Sanitation District on May 6, 2019; D. Receive and file Award Recommendation Notice issued to ODC on May 17, 2019 informing them of the Orange County Sanitation District's findings and subsequent recommendation to reject their Bid as non-responsive; E. Reject low bid from ODC Engineering and Technology as non-responsive; F. Receive and file Orange County Sanitation District's Award Recommendation Notice issued to all Bidders dated May 17, 2019; G. Award a construction contract to RP Controls, for the Plant No. 1 ICS Network Extension, Project No. FE17-05, for a total amount not to exceed $321,889; and H. Approve a contingency of$32,188 (10%). INFORMATION ITEMS: 7. ORANGE COUNTY SANITATION DISTRICT ENVIRONMENTAL SERVICES RESOURCE PROTECTION (Lan Wiborg) Each month, staff provides an informational presentation on topics of interest to the Board of Directors. This month's topic: Orange County Sanitation District Environmental Services Resource Protection: Protecting Water, Biosolids, and Gas for Reuse. 8. DIGESTER GAS FACILITIES REHABILITATION, PROJECT NO. J-124 (Kathy Millea) Staff will present information regarding the Preliminary Design Report cost estimate and its anticipated impact to the FY 2019-20 Budget. 9. FY 2019-20 BUDGET UPDATE (Lorenzo Tyner) Staff will provide an update and overview of the FY 2019-20 Proposed Budget. DEPARTMENT HEAD REPORTS: 06/05/2019 Operations CommR ee Agenda Page 3 c f 4 CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Board members may request staff to place an item on a future agenda. ADJOURNMENT: The next Special Meeting of the Operations Committee meeting is scheduled for July 10, 2019 at 5:00 p.m. Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations,please contact the Orange County Sanitation District Clerk of the Board's office at(714)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Aaenda Postina: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore, MMC Clerk of the Board (714)593-7433 klomaocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherbergColocsd.com. Assistant General Manager Rob Thompson (714)593-7310 rthomosonOZocsd.com Assistant General Manager Lorenzo Tyner (714)593-7550 INner(olocsd.com Director of Engineering KathyMillea 714 593-7365 kmillea omd.com 06/05/2019 Operations Committee Agenda Page 4 of 4 ITEM NO. 1 MINUTES OF THE SPECIAL OPERATIONS COMMITTEE MEETING Orange County Sanitation District Wednesday, May 1, 2019, 4:00 p.m. A meeting of the Operations Committee was called to order by Committee Chair Bob Collacott on Wednesday, May 1, 2019 at 4:05 p.m. in the Operations and Training Conference Room located at Plant No. 2 Operations Center, 22212 Brookhurst Street, Huntington Beach, CA 92646. The meeting was recessed to a tour of Plant No. 2 beginning at 4:05 p.m. The meeting reconvened at 5:00 p.m. Alternate Director Brooke Jones led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Robert Collacott, Chair Jim Herberg, General Manager Mariellen Yarc, Vice-Chair Rob Thompson, Assistant General Manager Brad Avery Lorenzo Tyner, Assistant General Manager Tom Beamish (Alternate) Celia Chandler, Director of Human Resources Allan Bernstein Kathy Millea, Director of Engineering Doug Chaffee Lan Wiborg, Director of Environmental Services Brooke Jones (Alternate) Tina Knapp, Assistant Clerk of the Board Steve Jones Don Cutler Lucille Kring Mike Dorman Jesus J. Silva Dean Fisher Schelly Sustarsic (Alternate) Alfredo Garcia Fred Smith Christopher Johnson John Withers, Board Vice-Chair Rebecca Long Kelly Lore COMMITTEE MEMBERS ABSENT: Jeff Mohr David Shawver, Board Chair Riaz Moinuddin Adam Nazaroff Wally Ritchie Jim Spears Don Stokes MarcoPolo Velasco Thomas Vu Eros Yong OTHERS PRESENT: Brad Hogin, General Counsel Denise Barnes, Alternate Director(Anaheim) Austin Mejia (Supervisor Chaffee's office) 05/01/2019 Operations Committee SPECIAL MEETING Minutes Page 1 of 6 PUBLIC COMMENTS: None. REPORT OF GENERAL MANAGER: General Manager Jim Herberg introduced Lan Wiborg, the newly hired Director of Environmental Services. REPORT OF COMMITTEE CHAIR: Committee Chair Collacott did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular meeting of the Operations Committee held on April 3, 2019. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic(Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver 2. REHABILITATION OF WESTERN REGIONAL SEWERS, PROJECT NO. 3-64 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve a Cost Sharing Agreement between the Orange County Sanitation District and the City of Anaheim for traffic signal construction in conjunction with the Orange-Western Sub-Trunk Rehabilitation, Contract No. 3-64A, for an amount not to exceed $220,000. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic(Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver 05/01/2019 Operations Committee SPECIAL MEETING Minutes Page 2 of 6 3. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Capital Improvement Program Contract Performance Report for the period ending March 31, 2019. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic(Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver 4. PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE REHABILITATION, PROJECT NO. MP-105 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve renegotiated Purchase Order terms and conditions with Dresser-Rand for the assessment and standard overhaul of Plant No. 2 Central Generation Steam Turbine Rehabilitation, Project No. MP-105. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic(Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver 5. QUARTERLY ODOR COMPLAINT REPORT (Rob Thompson) Received and filed the Fiscal Year 2018/19 Third Quarter Odor Complaint Report. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic(Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver NON-CONSENT: 6. FERRIC CHLORIDE PURCHASE (Rob Thompson) Assistant General Manager Rob Thompson provided a PowerPoint presentation that addressed both Item Nos. 6 and 7 and reviewed the purpose and commercial considerations of Ferric Chloride, regional odor control, and collections liquid-phase. Mr. Thompson responded to a question from the Committee 05/01/2019 Operations Committee SPECIAL MEETING Minutes Page 3 of 6 regarding cost trends. At the Committee's request, staff committed to looking into chemical sustainability and responding to the Committee's request and questions. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Purchase Order Agreement with Pencco, Inc. for the purchase of liquid ferric chloride, Specification No. C-2019-103713D, for the period beginning July 1, 2019 through June 30, 2020, for a unit price of $597 per dry ton delivered, for an estimated annual amount of $1,791,000 (plus applicable sales tax)with four (4) one-year renewal options. B. Approve a Purchase Order Agreement with Kemira Water Solutions, Inc.for the purchase of liquid ferric chloride, Specification No. C-2019-103713D, for the period beginning July 1, 2019 through June 30, 2020, for a unit price of $630 per dry ton delivered, for an estimated annual amount of$3,150,000 (plus applicable sales tax)with four (4) one-year renewal options; and C. Approve a unit price contingency of 10% per agreement. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic(Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver 7. REGIONAL ODOR AND CORROSION CONTROL SERVICES (ROCCS) PROGRAM, SPECIFICATION NO. C-2017-899BD — CONTINGENCY INCREASE (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve a unit price contingency increase of $116.39/dry ton (11.91%)to the Ferrous Chloride Chemical Agreement with Hill Brothers Chemical Company for the Regional Odor and Corrosion Control Services Program, Specification No. C-2017-89913D, for the period beginning July 1, 2019 through June 30, 2020, for a new total contingency amount not to exceed $136.93/dry ton (26.91%); an estimated total amount of$2,583,000. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic(Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver 05/01/2019 Operations Committee SPECIAL MEETING Minutes Page 4 of 6 INFORMATION ITEMS: 8. CAPITAL IMPROVEMENT PROGRAM PROPOSED BUDGET FOR FY 2019-20 (Kathy Millea) Each month, staff provides an informational presentation on topics of interest to the Board of Directors. This month's topic: Orange County Sanitation District Capital Improvement Program Proposed Budget for FY 2019-20. Director of Engineering Kathy Millea provided a PowerPoint presentation that reviewed total CIP budget authority, new projects, top budget increases and decreases, project cancellations/closures, projected FY 2019-20 net CIP outlays by project phase, projected FY 2019-20 net CIP outlays by project driver, and 10-year net CIP outlay: $2.8 billion, and 20-year net CIP outlay: $5.5 billion. Director Steve Jones arrived at 5:34 p.m. 9. FY 2019-20 BUDGET UPDATE (Lorenzo Tyner) Assistant General Manager Lorenzo Tyner introduced this item and Wally Ritchie, Controller, gave a PowerPoint presentation that provided an overview of the budget, revenue, expenses, operating expenses, Capital Improvement Program, and debt service. DEPARTMENT HEAD REPORTS: Ms. Millea introduced Eros Yong who was recently promoted to Engineering Manager. CL OSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Board members may request staff to place an item on a future agenda. 05/01/2019 Operations Committee SPECIAL MEETING Minutes Page 5 of 6 ADJOURNMENT Chair Collacott declared the meeting adjourned at 5:45 p.m. to the meeting to be held on Wednesday, June 5, 2019 at 5:00 p.m. Submitted by, Tina Knapp, CMC Assistant Clerk of the Board 05/01/2019 Operations Committee SPECIAL MEETING Minutes Page 6 of 6 OPERATIONS COMMITTEE Melting D310 TOBE.Of Dir. 06/OS119 O6/26/19 AGENDA REPORT ItemNumber Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE CONDENSER REPAIR, PROJECT NO. MP-257 GENERAL MANAGER'S RECOMMENDATION A. Approve a service contract to Manley's Boiler LLC for Plant No. 2 Central Generation Steam Turbine Condenser Repair, Project No. MP-257, Specification No. S-2019-101913D, for an amount not to exceed $289,900; and B. Approve a contingency of$57,980 (20%). BACKGROUND The Orange County Sanitation District (Sanitation District) operates eight Central Generation engines at its two treatment plants. The engines generate approximately two-thirds of the Sanitation District's electric demand and the majority of the process heat demand for sludge digestion. Plant No. 2 includes a steam turbine to convert waste heat into electrical energy. The steam turbine system includes a stand-alone condenser unit essential for operation. The condenser is not made by the manufacturer of the steam turbine. In May 2019, the Board approved modifications to terms and conditions for overhaul of the steam turbine. That overhaul does not address the condenser unit and is unrelated to this action. RELEVANT STANDARDS • Use all practical and effective means for resource recovery • Maintain a proactive asset management program PROBLEM The steam turbine condenser has an internal leak, resulting in cooling water entering the closed-loop boiler water circuit. Staff inspected the condenser and found severe corrosion beyond repair. PROPOSED SOLUTION Approve a service contract for the replacement, installation, and disposal of the appropriate components of the steam turbine condenser. Page 1 of 3 TIMING CONCERNS Until the overhaul of the condenser is complete, the steam turbine will not be operational. RAMIFICATIONS OF NOT TAKING ACTION Failure to take action will reduce the recovery of waste heat for electricity resulting in an annual cost of approximately $125,000 for additional electricity purchases. In addition, the steam turbine helps to balance the steam system, improving the safety and integrity of the steam system as a whole. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District advertised for bids on February 8, 2019. Two sealed bids were received on April 2, 2019. The bids were evaluated in accordance with the Sanitation District's policies and procedures. Staff recommends awarding a service contract to the lowest responsive and responsible bidder, Manley's Boiler LLC, for the completion of Plant No. 2 Central Generation Steam Turbine Condenser Repair, Project No. MP-257. Summary information on the bid opening for this project is as follows: Bidder Amount of Bid Manley's Boiler LLC $289,900 California Boiler, Inc. $545,563 CEQA The project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations sections 15301. Section 15301 (Class 1) exempts from CEQA "the operation, repair, maintenance, permitting, leasing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination' including "(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services." The project is exempt because it involves repairs and minor replacement of existing facilities involving no expansion of use or capacity. Page 2 of 3 FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This recommendation would be funded under the Repairs and Maintenance line item for Division 880 (Fiscal Year FY 2018-19 and 2019-20 Budget, Section 6, Page 100), and the available funding is sufficient for this action. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: Service Contract ML:dm Page 3 of 3 SERVICE CONTRACT Plant 2 Cen Gen Steam Turbine Condenser Repair(MP-257) Specification No. S-2019-1019BD THIS CONTRACT is made and entered into as of the date fully executed below, by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708 (hereinafter referred to as "OCSD") and r 1 with a principal place of business at r 1 (hereinafter referred to as "Contractor") collectively referred to as the"Parties". WITNESS TH , WHEREAS, OCSD desires to temporarily r&���IIII a services of Contractor for the n Gen Steam Turbine Condenser Repair fter referred to as "Services" 'be Exhibit"A"; and WHEREAS, OCSD has c o o conduct Services in a rdinance No. OCSD-52; and WHEREAS, on , the [Boa D or Operations Committee] of OCSD, by minut r, authorized execution of tr etween OCSD and Contractor; and WHEREAS, Contractor is qualified experience, training, and expertise to accomplish such Services, NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and the Contractor. The terms and conditions herein exclusively govern the purchase of Services as described in Exhibit"A". 1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibit "A" Scope of Work Exhibit "B" Bid Exhibit"C" Acknowledgement of Insurance Requirements Exhibit "D" OCSD Safety Standards (incorporated by reference) Exhibit"E" Human Resources Policies (incorporated by reference) Exhibit "F" Labor and Material Bond, and Performance Bond 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control. 1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. Orange County Sanitation District 1 of 10 Specification No. S-2019-1019BD Version 120518 1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any paragraph or provision hereof. 1.6 The term "days", when used in the Contract, shall mean calendar days, unless otherwise noted as business days. 1.7 OCSD holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 The term "hours', when used in this Contract, shall be as defined in Exhibit"A". 1.9 Contractor shall provide OCSD with all required prer�n yms and/or overtime work at no charge beyond the price provided under"Compensaticoelow. 1.10 Except as expressly provided oth OCSD accepts no liability for any expenses, losses, or action incurred or unde by Contractor as a result of work performed in aid anticipation of purchases of s servl by OCSD. 2. Compensation Compensation to be paid by OCSD to Coi for the Services provided under this Contract shall be a total amount not exceed Dollars (sr 1.00). de 3. California Department of Industrial Relations(DIR)Registration and Record of Wanes 3.1 To the extent Contractor's employees and/or its subcontractors who will perform Work during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq, Contractor and its subcontractors shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. 3.2 The Contractor and its subcontractors shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non- compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. 3.3 Pursuant to Labor Code Section 1776, the Contractor and its subcontractors shall furnish a copy of all certified payroll records to OCSD and/or general public upon request, provided the public request is made through OCSD, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement of the Department of Industrial Relations. 3.4 The Contractor and its subcontractors shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 4. Payments and Invoicing 4.1 OCSD shall pay, net thirty (30) days, upon receipt and approval, by OCSD's Project Manager or designee, of itemized invoices submitted for Milestones completed in accordance with Exhibit "A", Scope of Work, Section 9, Invoicing and Payments, Table 3. OCSD, at its sole discretion, shall be the determining party as to whether the Services have been satisfactorily completed. Orange County Sanitation District 2 of 10 Specification No. 5-2019-1019BD Version 120518 4.2 Invoices shall be emailed by Contractor to OCSD Accounts Payable at APStaffkaOCSD.com and "INVOICE" with the Purchase Order Number and S-2019- 1019BD shall be referenced in the subject line. 5. Audit Rights Contractor agrees that, during the term of this Contract and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract. 6. Scone of Work Subject to the terms of this Contract, Contractor shall perform the Services identified in Exhibit"X. Contractor shall perform said Services in accordance with generally accepted industry and professional standards. , 7. Modifications to Scope of Work for modifications to the Sco of Work hereunder can be made by OC� r#tim II modifications must b writing and signed by both Parties. 8. Contract Term The Services provided under this Contract shall be completed within 177 calendar days from the effective date of the Notice to Pro d. 9. Renewals-NOT USED 10. Extensions The term of this Contr y be ed only by written instrument signed by both Parties. 11. Performance Ti#isf es ce , he performance of the provisions hereof. 12. Term12.1 OCSD reserves o terminate this Contract for its convenience, with or without cause, in whole at any time, by written notice from OCSD of intent to terminate. Upon receipt of a termination notice,Contractor shall immediately discontinue all work under this Contract(unless the notice directs otherwise). OCSD shall thereafter, within thirty(30) days, pay Contractor for work performed(cost and fee)to the date of termination. Contractor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Contractor other than for work performed to the date of termination. 12.2 OCSD reserves the right to terminate this Contract immediately upon OCSD's determination that Contractor is not complying with the Scope of Work requirements, if the level of service is inadequate, or any other default of this Contract. 12.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written notice to Contractor: • if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or • if Contractor sells its business; or • if Contractor breaches any of the terms of this Contract; or • if total amount of compensation exceeds the amount authorized under this Contract. 12.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the termination of this Contract, whichever occurs first. Orange County Sanitation District 3 of 10 Specification No. S-2019-1019BD Version 120518 13. Insurance Contractor and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit "C"). Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract. 14. Bonds Contractor shall, before entering upon the performance of this Contract, furnish bonds (attached hereto in Exhibit "F") approved by OCSD's General Counsel - one in the amount of one hundred percent (100%) of the total C tract price bid, to guarantee the faithful performance of the work, and the other in the amnt of one hundred percent(100%) of the total Contract price bid, to guarantee payment of all claims for labor and materials furnished. This Contract shall not become effective until such bonds are supplied to and accepted by OCSD. Bonds must be issued by a California admitted surety and must be maintained throughout the life of the Contract and during the warranty period. 15. Indemnification and Hold Harmless Provision Contractor shall assume all responsibility for damages to property and/or injuries to persons, including acodental death, which may arise out of or be caused by Contractor's services under this Contract, or by its subcontractor(s) or by anyone directly or indirectly employed by Contractor, and whether such damage or injury shall accrue or be discovered before or after the termination of the Contract. Except as to the sole active negligence of or willful misconduct of OCSD, Contractor shall indemnify, protect, defend and hold harmless OCSD, its elected and appointed officials, officers, agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys'fees: (a)for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with Contractor's performance under the Contract, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process, or any patented or unpatented invention, article or appliance, furnished or used under the Contract, and/or (c) on account of any goods and services provided under this Contract. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Contractor of or anyone employed by or working under Contractor. To the maximum extent permitted by law, Contractor's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Contractor agrees to provide this defense immediately upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD. 16. OCSD Safety Standards OCSD requires Contractor and its subcontractor(s)to follow and ensure their employees follow all Federal, State, and local regulations as well as OCSD Safety Standards while working at OCSD locations. If during the course of the Contract it is discovered that OCSD Safely Standards do not comply with Federal, State, or local regulations, then the Contractor is required to follow the most stringent regulatory requirement at no additional cost to OCSD. Contractor and all their employees and subcontractors, shall adhere to all applicable OCSD Safety Standards and Human Resources Policies found at www.ocsd.com "Safety and Orange County Sanitation District 4 of 10 Specification No. 5-2019-1019BD Version 120518 Human Resources Policy" (hover over ABOUT US), select "Safety and Human Resources Policy'. Click "Safety Policies" to access the OCSD Safety Standards 2018-10-25 (Rev8) and Safety Standard Operating Procedures (SOPs.) In addition to the OCSD Safety Standards 2018-10-25 (Rev8), Contractor shall adhere to the following applicable Standard Operating Procedures: • SAFETY-SOP-102 PPE • ADM-SOP-604 Confined Space • ADM-SOP-605 LOTO 1-22-2015 • SAFETY-SOP-106 Hearina Conservation Program • ADM SOP-607 HazComm • ADM-SOP-617 Fire Preventio , • SAFETY-SOP-1 18 Hot Work , • SAFETY-SOP-12121 Lead As esto d Mold • ADM-SOP-626 05 Electrical coon • ADM-SOP-626 Fall Protection • SAFETY-SOP-303 Crane-Safety Program The OCSD Safety Standards 2018-09-10 (Rev 8)and A eby incorporated into this Contract by reference as though attached and fully set forth herein as Exhibit "D". Disregard OCSD Safety Standards 2015-10-15(Rev7). V To access the Human Resources Policies, RAW link identified above, click on "HR Policies", The listed Human Resources Policies are hereby incorporated into this Contract by reference as though attached and fully set forth herein as Exhibit"E". 17. Warranties In addition to the warranties stated in Exhibit "A", the following shall apply: 17.1 Manufacturer's standard warranty shall apply. All manufacturer warranties shall commence on th�f acceptance by the OCSD Project Manager or designee of the work as P 17. o ctor's Warranty (Guarantee): If within a one (1)year period of completion of all work pacified in Exhibit "A", OCSD informs Contractor that any portion of the Services provided fails to meet the standards required under this Contract, Contractor shall, within the time agreed to by OCSD and Contractor, take all such actions as are necessary to correct or complete the noted deficiency(ies) at Contractor's sole expense. 18. Liquidated Damages—NOT USED 19. Force Maieure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Contract. 20. Freight (F.O.B. Destination) Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 21. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it has investigated the work to be performed; 2)it has investigated the site of the work and is aware Orange County Sanitation District 5 of 10 Specification No. S-2019-1019BD Version 120518 of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Contractor's risk, until written instructions are received from OCSD. 22. Reaulatony Requirements Contractor shall perform all work under this Contract in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and California Water Codes Division 2. 23. Licenses, Permits. Ordinances and Reaulations Contractor represents and warrants to OCSD that it has obtained all licenses, permits qualific ions, and approvals of whatever nature that are legally required to engage in ork. .�and all fees required by Federal, State, County, City and/or municipal s and/or tariffs that pertain to the work performed under the terms of this Contract will paid by Contractor. - 24. Applicable Laws and Regulations Contractor shall comply with all applicable ederal, State, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities asses6td against OCSD as a result of Contractor's noncompliance therewith. Any permission requilp"y law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced. _ 25. Contractor's Employees Compensation 25.1 Davis-Bacon Act — Contractor will pay and will require all subcontractors to pay all employees on said project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis- Bacon Act shall apply only if the Contract is in excess of two thousand dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by Federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. 25.2 General Prevailing Rate — OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Contract, and copies of same are on file in the Engineering Department. The Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this Contract as required by Labor Code Section 1774 of the Stale of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each project site,which shall be made available to any interested party upon request. 25.3 Forfeiture For Violation—Contractor shall, as a penalty to OCSD,forfeit fifty dollars($50.00) for each calendar day or portion thereof for each worker paid (either by the Contractor or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. 25.4 Apprentices—Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, Orange County Sanitation District 6 of 10 Specification No. 5-2019-1019BD Version 120518 regarding the employment of apprentices are applicable to this Contract and the Contractor shall comply therewith if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty(20)working days or more;or If contracts of specialty contractors not bidding for work through the general or prime Contractor are two thousand dollars ($2,000.00) or more or five (5)working days or more. 25.5 Workday—In the performance of this Contract, not more than eight(8)hours shall constitute a day's work, and the Contractor shall not require more than eight(8)hours of labor in a day from any person employed by it hereunder. Contractor shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at seq.)of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of twenty-five dollars ($25.00)for each worker employed in the execution of this Contract by Contractor or any subcontractor for each calendar day during which any worker is required or permitted to labAmore than eight (8) hours in any one (1) calendar day and forty (40) hours in any one FT week in violation of said Article. Contractor shall keep an accurate recor&showing the name and actual hours worked each calendar day and each calendar week by each worker employed by Contractorin connection with the project. 25.6 Record of Wages; Inspection — Contractor agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the project and agrees to require that each of its subcontractors do the same. All payroll records shall be certified as accurate by the applicable Contractor or subcontractor or its agent having authority over such matters. Contractor further agrees that its payroll records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. Penalties for non-compliance with the requirements of Section 1776 may be deducted from project payments p r the requirements of Section 1776. 26. South Co Air Quality Management District's (SCAQMD) Requirements It is Contractor's responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All Contract work practices, which may have associated emissions such as sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD. 27. Governing Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange, in the event any action is brought in connection with this Contract or the performance thereof. 28. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Contractor to which OCSD does not object shall not operate as a waiver of OCSD's rights to seek remedies available to it for any subsequent breach. 29. Remedies In addition to other remedies available in law or in equity, if the Contractor fails to make delivery of the goods or Services or repudiates its obligations under this Contract, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Contract; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) "cover' by purchasing, or contracting to purchase, substitute Orange County Sanitation District 7 of 10 Specification No. S-2019-1019BD Version 120518 goods or Services for those due from Contractor. In the event OCSD elects to "cover" as described in (3), OCSD shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods or Services and the Contract price, together with any incidental or consequential damages. 30. Dispute Resolution 30.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any s ilar oVnization or entity conducting an alternate dispute resolution process. 30.2 In the event the Parties are unable tte ely olve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two(2)arbitrators shall select a third. Discovery ma4e conducted in connection with the arbitration proceeding pursuant to California Code of Civil PvWdure Section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. TFie arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 31. Attornev's Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 32.lva1 The provisions of this Contract dealing with Payment, Warranty, Indemnity, and �m for Enforcement, shall survive termination or expiration of this Contract. 33. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid,the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 34. Damape to OCSD's Property Any of OCSD's property damaged by Contractor, any subcontractors or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OCSD. 35. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD. 36. Independent Contractor The legal relationship between the parties hereto is that of an independent contractor, and nothing herein shall be deemed to make Contractor an OCSD employee. During the performance of this Contract, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act as OCSD's officers, Orange County Sanitation District 8 of 10 Specification No. 5-2019-1019BD Version 120518 employees, or agents. Contractor and its officers, employees, and agents shall obtain no rights to any benefits which accrue to OCSD's employees. 37. Limitations upon Subcontracting and Assignment Contractor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void. 38. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OCSD and Contractor. 39. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall be personally liable to Contractor, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may bWme due to Contractor or to ' s successor, or for breach of any obligation for the termsTrthis Contract. 40. Read and Understood By signing tht s ontract, Contractor represents thi f s r and understood the terms and conditions of the Contract. -- 41. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract 0anat by executing this Contract, the Parties are formally bound.42. Entire Contract This Contract constitutes theeement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations I�e een the Parties with respect to the subject matter hereof. O O O Orange County Sanitation District 9 of 10 Specification No. S-2019-1019BD Version 120518 43. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses: OCSD: B. Cori Voss Senior Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, A 9271]B Contractor: Contac , Co e / t6cWther Name ress ate, Zip Code Each parry shall provide party written notice in address as soon as practicable. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives. A ORANGE COUNTY SANITATION DISTRICT Dated: By: David John Shawver Ic Chair, Board of Directors or Operations Committee Dated: By: Kelly A. Lore Clerk of the Board Dated: By: Marc Dubois Contracts, Purchasing and Materials Management Manager COMPANY Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District 10 of 10 Specification No. S-2019-1019BD Version 120518 OPERATIONS COMMITTEE Meeting Date TOBE.Or Dir. 06/OS119 O6/26/19 AGENDA REPORT Item Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: FLEET PURCHASE OF EIGHT SEDANS AND FOUR TRANSIT VANS GENERAL MANAGER'S RECOMMENDATION A. Approve a Purchase Order to National Auto Fleet Group for the purchase of four Toyota Prius sedans, four Nissan Leaf sedans, and four Ford Transit vans using Sourcewell (formerly National Joint Powers Alliance)Cooperative Contract No. 120716-NAF for a total amount not to exceed $361,554; and B. Approve a contingency of$18,078 (5%). BACKGROUND As part of an overall fleet right-sizing and modernization strategy, the Fleet Services Division of the Orange County Sanitation District (Sanitation District) is systematically replacing the oldest vehicles of the fleet. Vehicle replacement is based on vehicle age, maintenance cost, and mileage. The Sanitation District maintains a fleet of vehicles necessary to meet its business needs. The fleet is comprised of 22 heavy-duty equipment trucks, 103 light-duty trucks, 33 sedans, 12 SUVs, and 10 vans, for a total of 180 vehicles. Replacement of older vehicles improves staff safety by ensuring vehicles are equipped with airbags, anti-lock brakes, and traction control. Light-duty trucks compose the largest segment of the fleet and support equipment needs of Engineering, Operations, Collections, and Maintenance staff. Approximately 25%of the Sanitation District's vehicles are "Green'or FLEX fuel vehicles. Replacement vehicles are evaluated for replacement as "Green" (electric, hybrid, CNG) vehicles. RELEVANT STANDARDS • Participate in local, state, and national cooperative purchasing programs • Maintain a proactive asset management program • Ensure the public's money is wisely spent Page 1 d 3 PROBLEM Eight 1998-2001 Ford Taurus sedans identified for replacement have a current average maintenance cost per year of $1,550. Four 2001 Ford F-150 trucks are proposed for replacement in the Source Control Division and have an average maintenance cost per year of$2,025. PROPOSED SOLUTION Staff recommends that the sedans be replaced with a combination of full electric sedans and Hybrid/elect sedans. This combination will provide vehicles meeting current safety standards, reduce fuel costs, and reduce annual maintenance costs. The vans will provide evidentiary control for samples collected by the Source Control staff and provide a secure workspace while in the field. Currently, sampling related tasks are done outside, leaving staff and samples exposed to the elements (sun, heat, rain, cold) which can negatively impact evidentiary control and sampling standards. The average procurement cost per sedan is $27,500. The procurement cost per van is $35,400. TIMING CONCERNS A 5% contingency has been recommended should there be a pricing change between the date of approval and date of purchase due to tariffs and uncontrolled market conditions. RAMIFICATIONS OF NOT TAKING ACTION The vehicles selected to be replaced are unreliable, deteriorating, and are no longer economical to maintain. Additionally, these vehicles are not equipped with more modern safety features currently required for Fleet vehicles. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District has provisions to purchase materials, services, and equipment from cooperative agreements. These cooperative agreements tend to produce lower unit prices. The Sanitation District is utilizing a cooperative agreement through Sourcewell (formerly National Joint Powers Alliance), Cooperative Contract No. 120716-NAF with National Auto Fleet Group, in accordance with Ordinance No. OCSD-52, Section 2.03(B), Cooperative Purchases. Page 2 of 3 The amount of savings under this cooperative agreement is $23,069.79 versus non-cooperative contract list pricing. Summary information on the quote for eight (8) passenger sedans and four (4) transit vans is as follows. These costs are inclusive of freight and sales tax. Vehicle Description & Unit Quantities Total Amounts (Including O lions, Tax, Tire Fee Four (4) 2019 Toyota Prius L $101,539 Four (4) 2019 Nissan Leaf S Hatchback $118,421 Four (4) 2019 Ford Transit T-250 Medium Roof Vans $141,592 Summary information on the identified vehicles for replacement. Type Year Make Model Mileage Sedan 1998 Ford Taurus 34,466 Sedan 1998 Ford Taurus 66 930 Sedan 1999 Ford Taurus 46,997 Sedan 2000 Ford Taurus 49,562 Sedan 2001 Ford Taurus 58,124 Sedan 2001 Ford Taurus 42,957 Sedan 2001 Ford Taurus 63 028 Sedan 2001 Ford Taurus 64,384 Light-Truck 2001 Ford F-150 86,469 Light-Truck 1 2001 1 Ford I F-150 121,303 Light-Truck 1 2001 1 Ford I F-150 116,000 Light-Truck 2001 Ford F-150 103 312 CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation Districfs Purchasing Ordinance. This item has been budgeted in the FY 2018-19 Budget, Line item: Section 8, Page 96, Fleet Services, eleven Sedans and six light trucks. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A DS:sr:gc Page 3 d 3 OPERATIONS COMMITTEE Meeting Date TOBd.woir. 06/OS119 O6/26/19 AGENDA REPORT ItemNumber Item Number a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: PLANT NO. 2 TRICKLING FILTER CLARIFIER "E" REPAIR GENERAL MANAGER'S RECOMMENDATION A. Approve a Sole Source Purchase Order to Ovivo USA, LLC to refurbish and repair Trickling Filter Clarifier"E" rotating scum skimmer troughs, sludge ducts and their associated components for a total amount not to exceed $190,280; B. Approve a contingency of$38,056 (20%); and C. Approve Amendment to Orange County Sanitation District Purchase Order Terms and Conditions. BACKGROUND The trickling filter process is one of the two secondary wastewater treatment processes at the Orange County Sanitation District's (Sanitation District) Plant No. 2. The three trickling filters remove suspended and dissolved organic material using microorganisms. The trickling filters are followed by six clarifiers, Clarifiers A through F. The Trickling Filter Secondary Clarifier "E" experienced a failure and damage to the rotating scum troughs and is in need of repair. RELEVANT STANDARDS 24/7/365 treatment plant reliability • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting PROBLEM The upper scum trough failure at Trickling Filter Clarifier "E" occurred when a sludge suction duct came in contact with the drain gate in the bottom of the clarifier due to misalignment of the center column. The scum trough is damaged along with its structural support elements. PROPOSED SOLUTION Replace the outer sections of both the scum trough and the suction duct with shorter sections to reduce the possibility of such failure in the future, conduct repairs of the damaged elements of the scum trough, and realign the center column. Page 1 of 3 TIMING CONCERNS The repairs need to be conducted prior to the onset of the next wet weather season to ensure operational availability of all six trickling filter clarifiers required for handling the peak wet-weather flows. RAMIFICATIONS OF NOT TAKING ACTION Failure to repair the trickling filter clarifier would result in loss of rapacity to handle peak wet-weather flows and also reduces the ability to provide normal maintenance of the Plant No. 2 secondary treatment system. PRIOR COMMITTEE/BOARD ACTIONS September 2018 - Board approved a Sole Source Purchase Order to Ovivo USA, LLC to refurbish and repair Trickling Filer "A" rotary distributor and associated damaged components for a total amount not to exceed $175,085; approved a contingency of $35,017 (20%); and approved Amendment to the Orange County Sanitation District Purchase Order Terms and Conditions. February 2018 - Ovivo USA, LLC approved by the Board as a sole source provider of Trickling Filter related service and replacement parts. ADDITIONAL INFORMATION A contingency of 20% is requested to cover additional costs for labor and materials should further damage be discovered to the seals or rotating mechanisms. In September 2018, Ovivo requested, and the Board approved, the same amendments to the purchase order Terms and Conditions as currently being considered. General Counsel has again reviewed the requested revisions to the Terms and Conditions and approves such as presented in the attached Addendum to the Orange County Sanitation District Purchase Order Terms and Conditions. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This recommendation will be funded under the Repairs and Maintenance line item for the Operations and Maintenance Department, and the available funding is sufficient for this action. FY 2018-19 Budget Line Item: Repairs and Maintenance, Section 6, Page 92. Page 2 of 3 Date of Approval Contract Amount Contingency 06/26/2019 $190,280 $38,056 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Addendum to Orange County Sanitation District Purchase Order Terms and Conditions • Orange County Sanitation District Purchase Order Terms and Conditions RT:RM:ab:gc Page 3 of 3 Addendum to Orange County Sanitation District Purchase Order Terms and Conditions In the event of conflict between the Purchase Order documents("Purchase Order")and this Addendum,the terms of the Addendum shall control. The parties are Orange County Sanitation District("OCSD")and Ovivo USA, LLC("Contractor"). Limitation of Liability and Consequential Damage Disclaimer To the extent permissible by applicable law, Contractor shall have no further liability in connection with this Purchase Order in excess of the cost of correcting any defects,or in the absence of any defect, in excess of the value of the equipment supplied hereunder. However, notwithstanding any other provision of the Purchase Order to the contrary, in no event shall Contractor be liable for any punitive, exemplary,special, incidental,or consequential loss or damage suffered by OCSD,or any other party, in connection with this Purchase Order. These limits shall not apply to third party claims based on injury,death,or property damage. These limits shall not apply to claims which are based on the willful misconduct,gross negligence,or fraud of the Contractor. Liquidated Damages Except in cases of Force Majeure,Contractor agrees to pay OCSD, as liquidated damages,one hundred dollars ($100) per day for every working day of delay attributable to Contractor. Contractor's liability for liquidated damages shall not exceed, in the aggregate, any amount more than ten percent(10%)of the Purchase Order price. Contractor shall not be liable to pay liquidated damages for solely Owner/OCSD-caused delays such as late drawing approval, inspection delays,scope changes etc. Notwithstanding any other provision of the Purchase Order to the contrary, payment of liquidated damages shall be Contractor's sole liability and OCSD's sole remedy for delays. Such remedies shall not be enforced unless OCSD suffers an economic loss as a result of Contractor's delay. Indemnity Any and all indemnity obligations of Contractor in connection with this Purchase Order shall be limited to the extent of Contractor's fault. Insurance Contractor shall maintain its current level of insurance for the duration of the Purchase Order,as set forth in sample certificate of insurance,attached hereto as Exhibit A. Certificates of insurance shall be sufficient evidence of coverage, and in no event,will Contractor be required to provide copies of insurance policies. Bonds In no event shall Contractor be required to provide a Bond for which the value exceeds the Purchase Order price, nor a duration which exceeds the first twenty-four(24) months of the warranty period. Orange County Sanitation District Ovivo USA, LLC ("OCSD") ("Contractor") By: By: Kcwety& rn-k Name:—Lorenzo Tyner Name:—Karen Burns Title:_Assistant General Manager_ Title: Product Manager Date: Date:_May 21,2019 1330529.1 ORANGE COUNTY SANITATION DISTRICT(OCSD) - PURCHASE ORDER TERMS AND CONDITIONS 1. CONTRACTTERMS. 1.1Forms/Acceptance. Except as otherwise provided in subsection 1.2 below,the complete agreement the("Agreement")between OCSD and Contractor(collectively,the"Parties")consists of,in order of precedence:(1)OCSD's solicitation/request for bids/proposals,together with plans and specifications(collectively,the"NIB/RFP"),if any,(2)the purchase order signed by OCSD's Purchasing Manager(the"Purchase Order"),(3)Addendum to Orange County Sanitation District Purchase Order Terms and Conditions(4)these terms and conditions(the"Terms and Conditions"),and (5)Contractor's bid/proposal,if any,as though fully set forth herein.To the extent of any inconsistency between the provisions of any of the foregoing,the order of precedence shall dictate the result. Except for any section or subsection OCSD has marked "WAIVED",each provision of the Terms and Conditions applies to the Agreement.Contractor's shipment of goods/performance of services shall constitute acceptance of these Terms and Conditions. 1.2Additional Terms.Any other terms,conditions,or limitations suggested by Contractor or incorporated in Contractor's invoice,or other correspondence,shall not forma part of the Agreement unless expressly accepted in writing by OCSD's Purchasing Manager. 2. PAYMENTTERMS. 2.1Standard:Net 30 days unless otherwise stated on the Purchase Order. 2.2 Price.Contractor shall not charge for transportation,packing,containers,storage,or any similar charge unless pre-approved by OCSD.OCSD is exempt from the payment of federal excise tax,which shall be excluded from the purchase price.The total purchase price quoted in the Purchase Order includes applicable California,county and municipal sales and use taxes. 2.3lnvoices.Contractor shall submit invoices to APstaff@ocsd.com or in duplicate to the Orange County Sanitation District,Attn: Accounts Payable,10844 Ellis Ave.,Fountain Valley,CA 92708. Each invoice must show OCSD's purchase order number,description of goods and services,unit price,quantities billed,extended totals,and shall cover only goods delivered/services performed. OCSD shall pay for goods/services after receipt of a conforming invoice and confirmation by OCSD of its accuracy. In connection with any cash discount specified in the Agreement:(a)time will be computed from the date OCSD accepts the goods/services,or the date OCSD receives a conforming invoice,whichever date is later,and(b)payment shall be deemed to have been made on the date of mailing of OCSD's check. 2.4Blanket Invoices.Contractor shall submit invoices for Blanket Orders as outlined in paragraph 2.3 as well as add the following information:(a)the Blanket Order Number;(b)the Last Name of the authorized OCSD employee placing the order;(c)the Date the order is placed on;and(d)a unique request tracking number for each order placed. 3. DELIVERY/PERFORMANCE,INSPECTION,AND RISK OF LOSS. 3.1Deliyery/Performance.Contractor shall deliver the goods/perform the services according to the schedule in the Agreement,with numbers of days meaning calendar days, unless otherwise stated,and to the locations specified by OCSD.All goods shall be delivered F.O.B.destination in one shipment and no partial deliveries shall be accepted.All pre-approved transportation and delivery charges must be prepaid in full to destination,and the prepaid freight bill must be submitted to OCSD with the invoice. Goods shall not be accepted if shipped C.O.D.Subject to OCSD's right of rejection,title to goods shall pass to OCSD at the F.O.B. point per the Agreement,and title to materials shall pass to OCSD when the materials are affixed to OCSD property or paid for by OCSD. 3.2inspection.OCSD shall have the right to inspect the goods/services within a reasonable amount of time prior to acceptance and payment.If,on inspection,OCSD determines that the goods or services do not meet the Agreement requirements,OCSD may reject nonconforming goods and services.In addition,OCSD shall have the right to keep,at no expense to OCSD,a small sample of the goods tendered,for evidence of kind/quality.Contractor shall pay for the cost of inspection and charges for delivery to return nonconforming goods(at Contractor's risk and expense)which do not meet Agreement requirements. If services do not conform to the Agreement requirements,OCSD shall have the right to withhold payment or enforce any other remedy provided for in the Agreement until the services conform to the Agreement requirements. 3.3Risk of Loss.Risk of loss of the goods/materials passes to 00513 only after acceptance. 4. PERFORMANCE OF SERVICES/CONTRACTOR COVENANTS. 4.1Personnel/Compliance with Law.All services shall be performed:(a)by competent and qualified personnel,who shall be paid at least the prevailing rate of per diem wages,as determined by the Director of the Department of Industrial Relations,applicable to the work to be done for the locality in which the work is to be performed,unless exempted,and(b)in conformance with applicable federal,state and local laws Contractor certifies that it is registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 and shall obtain and maintain valid, permits,licenses,certificates,authorizations and other documents as required by federal,state or local laws or regulations.The persons performing services under this Agreement on behalf of Contractor,if any,shall at all times be under Contractor's exclusive direction and control.Neither OCSD nor any of its officers, employees,or agents shall have control over the conduct of Contractor or any of its officers,employees,or agents,except as set forth in the Agreement. 4.2Standard Provisions/Specifications.If so provided in the NIB/RFP,the services performed under the Agreement are subject to, and must conform with,the General Provisions herein,as adopted and amended by OCSD from time to time. 923732.1 Rev.0104171L ORANGE COUNTY SANITATION DISTRICT(OCSD) - PURCHASE ORDER TERMS AND CONDITIONS 4.3Status of Contractor.The legal relationship between the parties hereto is that of an independent contractor,and nothing herein shall be deemed to make Contractor an OCSD employee. During the performance of this Agreement,Contractor and its officers, employees,and agents shall act in an independent capacity and shall not act as OCSD's officers,employees,or agents. 4ATaxes.Contractor shall pay and/or withhold all applicable sales,use,income,employment,or other taxes arising out of the performance of the Agreement.Contractor shall pay all wages,salaries,and other amounts due its employees,agents or independent contractors in connection with this Agreement and shall be responsible for all reports and obligations respecting them, including but not limited to unemployment compensation,workers'compensation,and other similar matters. 4.5Records.Contractor shall keep and maintain full and complete documentation and accounting records concerning all services performed that are compensable under the Agreement and shall make such documents and records available to OCSD for inspection at any reasonable time.Contractor shall maintain such records for a period of 3 years following completion of the work under the Agreement.All written product,data,findings,or information in any form prepared by,assembled by,or provided to Contractor under this Agreement are the property of OCSD,including all copyrights or intellectual property rights inherent in them or their preparation.To the extent permitted by law,it is the intent of the Parties that written products to be produced,if any,by Contractor,under this Agreement are conclusively deemed"works made for hire"within the meaning of the United States Copyright Act,and that OCSD will be the sole copyright owner of the deliverables,data,findings,or information,and of all aspects,elements and components of them in which copyright can subsist,and of all rights in connection with such copyright.All written products prepared in connection with this Agreement and any and all intellectual property rights arising from their creation,including,but not limited to,all copyrights and other proprietary rights,shall be and remain the property of OCSD without restriction or limitation upon their use by OCSD.OCSD's ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. 5. WARRANTIES. 5.1 Warranty of Title.Contractor warrants that it has title to the goods,and to the materials and equipment used in the performance of services under the Agreement,and that none of the foregoing is subject to any security interest,lien,or other encumbrance. 5.2 Warranties for Goods/Services.Contractor warrants that:(a)the goods,and any materials and equipment supplied,will:(!)be new unless otherwise specified,(it)conform to(A)OCSD's plans,specifications,and/or descriptions,and(B)Contractor's representations and/or samples,and(III)be of first-class material and workmanship and free from defect;and(b)all services will be: (i)of good quality,free from defect,and in conformance with the Agreement,and (it)performed to the standard of care customary in Contractor's trade or profession.Contractor shall transfer to OCSD all of Contractor's rights to and interest in the manufacturer's warranty or guarantee for each item delivered or installed,if applicable.All manufacturers'warranties and guarantees shall be in addition to Contractor's warranty under the Agreement. In the event of a breach of warranty,Contractor shall repair or replace the goods, materials and equipment and remedy any defects in workmanship,without charge and within 5 business days after receipt of OCSD's request.If Contractor does not do so within 5 business days,OCSD shall be entitled to a refund of the purchase price. In addition,OCSD shall have the right to remedy any defects itself and to collect the cost of the same from Contractor.OCSD's inspection,acceptance,and/or payment shall not relieve Contractor of liability under this warranty,which shall be effective for 1 year after the date of OCSD's final payment.The remedies in this subsection are in addition to those described in Section 6,below. 6. OCSD'S REMEDIES.If Contractor defaults under the Agreement,OCSD may pursue any and all remedies provided under the Agreement,the California Commercial Code,and/or any other applicable provision of law,including,but not limited to,anyone or more of the following remedies: (a)in the event of untimely or nonconforming delivery/performance of goods/services,OCSD may purchase substitute goods/services from other sources and recover from Contractor the difference between the Agreement prices for such goods/services and the actual cost,to OCSD,of the substitute goods/services;OCSD may deduct such difference from any moneys due Contractor under the Agreement,or collect such difference(i)from any applicable surety,or(ii)in any other manner permitted bylaw;(b)OCSD may terminate the Agreement for breach;and (c)OCSD shall be entitled to recover all damages, including consequential and/or incidental damages. 7. CONTRACTOR'S REMEDIES.If OCSD defaults under the Agreement,Contractor may file a claim with OCSD,in accordance with applicable provisions of law. 8. TERMINATION FOR CONVENIENCE AND DEFAULT 8.1.Termination for Convenience.OCSD,in its sole and absolute discretion, may terminate the Agreement,in whole or in part,at any time,without cause,at any time by written notice to Contractor.In such case,Contractor shall immediately discontinue all work (unless the notice directs otherwise).Contractor shall be entitled to payment only for those goods, materials and equipment delivered and services performed that 005D has accepted. 8.2.Termination for Default.OCSD may terminate the Agreement based on the Contractor's default_If Contractor breaches any provision of this Agreement and if such breach is not cured within fifteen(15)days after receiving written notice from OCSD specifying such breach in reasonable detail,OCSD shall have the right to terminate the Agreement by giving written notice to Contractor at which time termination shall be effective immediately. Upon termination for default,OCSD may exclude Contractor from all OCSD sites;take possession of all materials,equipment,tools,and equipment and machinery owned by the Contractor and 923732.1 Rev.0104171L ORANGE COUNTY SANITATION DISTRICT(OCSD) - PURCHASE ORDER TERMS AND CONDITIONS remaining on OCSD sites;accept assignment of any subcontracts that OCSD desires to keep and complete the work by whatever reasonable method it deems expedient.In the event the Agreement is terminated for default,OCSD is entitled to recover excess re- procurement costs and delay damages,among other remedies. 9.INDEMNIFICATION/DUTY TO DEFEND.Contractor shall assume all responsibility for damages to property and/or injuries to persons,including accidental death,which may arise out of or be caused by Contractor's services under this Agreement,or by its subcontractor or by anyone directly or indirectly employed by Contractor,and whether such damage or injury shall accrue or be discovered before or after the termination of the Agreement. Except as to the sole active negligence or willful misconduct of OCSD, Contractor shall indemnify,protect,defend and hold harmless OCSD,its elected and appointed officials,officers,agents and employees,from and against any and all claims,liabilities,damages or expenses of any nature,including attorneys'fees:(a)for injury to or death of any person or damage to property or interference with the use of property,arising out of or in connection with Contractor's performance under the Agreement,and/or(b)on account of use of any copyrighted or uncopyrighted material, composition,or process,or any patented or unpatented invention,article or appliance,furnished or used under the Agreement, and/or(c)on account of any goods and services provided under this Agreement.This indemnification provision shall apply to any acts or omissions,willful misconduct,or negligent misconduct,whether active or passive,on the part of Contractor or anyone employed by or working under Contractor.To the maximum extent permitted by law,Contractor's duty to defend shall apply whether or not such claims,allegations,lawsuits,or proceedings have merit or are meatless,or which involve claims or allegations that any of the parties to be defended were actively,passively,or concurrently negligent,or which otherwise assert that the parties to be defended are responsible,in whole or in part,for any loss,damage,or injury.Contractor agrees to provide this defense immediately upon written notice from OCSD,and with well qualified,adequately insured,and experienced legal counsel acceptable to 005D.This section shall survive the expiration or early termination of the Agreement. 10.GENERAL PROVISIONS. 10.1 Notice.Notice shall begiven by certified mail,return receiptrequested,facsimile orother electronic telecommunications transmission with a date and time receipt acknowledgment,or personal delivery.Notice shall be effective on receipt. 10.2 Nondiscrimination.Contractor shall comply with all applicable federal,state,and local laws, rules,and regulations in regard to nondiscrimination in employment because of race,color,ancestry,national origin,religion,sex,marital status,age,medical condition,pregnancy,disability,or other prohibited basis.All nondiscrimination rules or regulations required by law to be included in the Agreement are incorporated by this reference. 10.3 Force Maieure.Neither party shall be liable for any delay or failure in the performance of the Agreement to the extent the delay or failure is caused by labor disputes,strikes,war,riots, insurrection,civil commotion,fire,flood,accident,storm or any Act of God. 10.4 Assignment.Contractor may neither assign a right under or an interest in the Agreement,nor delegate or subcontract an obligation under the Agreement,without the written consent of OCSD's Purchasing Manager.Any attempted assignment,delegation or subcontract,without such written consent,shall be void. 10.5 No Waiver or Excuse.No provision of the Agreement shall be deemed waived and no breach shall be deemed excused, unless such waiver or excuse is in writing and signed by the party making the waiver or excusing the breach.No such waiver or excuse shall constitute a waiver of another provision,or an excuse of another breach. 10.6 Applicable Law/Venue/Attorneys'Fees.The Agreement shall be governed by,and construed in accordance with,the laws of the State of California.Any action or proceeding for dispute resolution arising out of the Agreement shall be brought and tried in the County of Orange,State of California,and the prevailing party shall be entitled to reasonable attorneys'fees,costs and expenses. 10.7 Construction and Severability.To the fullest extent allowed by law,the provisions of the Agreement shall be construed in a mannerthat avoids any violation of statute,ordinance,regulation,or law. If a court of competent jurisdiction holds any provision of the Agreement to be void,the remaining provisions shall continue in full force and effect. 11.INSURANCE AND BOND REQUIREMENTS.Before beginning work under the Agreement,Contractor shall provide OCSD with: 11.1 Such bonds,insurance and certificates of insurance,as may be required by OCSD in the NIB/RFP;and 11.2 If not described in 11.1,(1)Certificates of commercial general liability,automobile liability,and workers compensation insurance,all to the satisfaction of OCSD,as well as pollution liability coverage and professional liability coverage,if requested by OCSD to the satisfaction of OCSD;(2)Proof of Products Liability Insurance,which shall be maintained during the life of the Agreement and thereafter as required by OCSD,which insurance shall be in form and with limits to the satisfaction of OCSD(3) Insurance policy endorsements showing additional insured coverage for OCSD(for general and automobile liability),as well as waivers of subrogation in favor of OCSD with regard to all policies described above; (4)Labor and materials bonds, satisfactory to OCSD,for 100%oftheAgreement price and any additions added per change order.All such insurance and bonds must remain in effect throughout the performance of the Agreement. In addition,all bonds must be issued by a qualified corporate surety licensed to do business in the State of California and all insurance carriers must have an A-(A minus),or better, policy holder's rating and a financial rating of Class Vill,or better,in accordance with the most current AM Best rating.All sureties and insurers must have agents for service of process in California. 923732.1 Rev.0104171L ORANGE COUNTY SANITATION DISTRICT(OCSD) - PURCHASE ORDER TERMS AND CONDITIONS 12.SAFETY AND HUMAN RESOURCES POLICIES:Contractors who perform work for OCSD must comply with OCSD Safety Standards.A digital version of OCSD's Safety Standards is available on the OCSD website at www.ocsd.com.A printed version of the Safety Standards will be made available only upon request. 923732.1 Rev.0104171L OPERATIONS COMMITTEE Meeting Date TOBE.Or Dir. 06/OS119 O6/26/19 AGENDA REPORT ItemNumber Item Number s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: PLANT NO. 2 SECONDARY CLARIFIER REPAIRS, PROJECT NO. MP-248 GENERAL MANAGER'S RECOMMENDATION A. Receive and file Bid Tabulation and Recommendation for Plant No. 2 Secondary Clarifier Repairs, Project No. MP-248; B. Award a Construction Contract to W.M. Lyles for Plant No. 2 Secondary Clarifier Repairs, Project No. MP-248, for a total amount not to exceed $3,048,000; and C. Approve a contingency of$304,800 (10%). BACKGROUND The Activated Sludge Plant at Orange County Sanitation District(Sanitation District)Plant No. 2 has twelve rectangular clarifiers that include chain and flight sludge collector mechanisms that are subject to wear and corrosion and that require periodic replacement. The age of the collectors ranges from 14 to 25 years old. RELEVANT STANDARDS • Protect Orange County Sanitation District assets • Sustain 1, 5, 20-year planning horizons • Maintain a proactive asset management program PROBLEM Staff, working with the original equipment manufacturer, performed inspections and determined that the sludge collector mechanisms within six of the twelve clarifiers require replacement at this time. Replacement of the equipment in the remaining six clarifiers is not required at this time. PROPOSED SOLUTION Award a contract to replace the sludge collector mechanisms in six rectangular clarifiers at the Activated Sludge Plant at Plant No. 2. Page 1 d 3 TIMING CONCERNS The clarifiers must be reliable so that the Activated Sludge Plant at Plant No. 2 will have sufficient capacity while other projects in the vicinity are being implemented. RAMIFICATIONS OF NOT TAKING ACTION Not replacing the sludge collector mechanisms will reduce reliability of the clarifiers and potentially impact wet weather performance. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District advertised forbids on February 28, 2019. Eight sealed bids were received on April 16, 2019. The bids were evaluated in accordance with the Sanitation District's policies and procedures. Staff recommends awarding a construction contract to the lowest responsive and responsible bidder, W.M. Lyles Company, for the completion of P2 Secondary Clarifier Repairs, Project No. MP-248. Summary information on the bid opening for this project is as follows: Bidder Amount of Bid W.M. Lyles Company $3,048,000 PCL Construction, Inc. $3,604,457 JR Filanc $3,996,088 Myers & Sons Construction, LLC $4,122,000 MIMIC Inc. $4,254,000 Metro Builder& Engineers Group $4,395,295 Abhe & Svoboda, Inc. $4,676,202 Tharsos Inc. $5,778,000 The engineer's estimate was $4,100,000. Staff is also working on a separate project to replace the inlet gates. Completing these two projects will allow a much larger capital improvement program rehabilitation project to be postponed. CEQA This project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations sections 15301. Page 2 of 3 Section 15301 (Class 1) exempts from CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination' including"(b)Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services." This project is exempt because it involves maintenance activities with the replacement of existing facilities involving no expansion of use or capacity. A Notice of Exemption will be filed with the County Clerk Recorder office following award of this agreement by the Board. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This recommendation would be funded under the Repairs and Maintenance line item for Division 880 (Fiscal Year FY 2018-19 and 2019-20 Budget, Section 6, Page 100), and the available funding is sufficient for this action. ATTACHMENT The following attachment(s) may be viewed on-line at the OOSD website (wwwocsd.corn with the complete agenda package: Construction Contract SS:dm:sa Page 3 of 3 PART A CONTRACT AGREEMENT C-CA-112818 TABLE OF CONTENTS CONTRACT AGREEMENT SECTION- 1 GENERAL CONDITIONS.................................................................1 SECTION-2 MATERIALS AND LABOR................................................................4 SECTION-3 PROJECT ........................................................................................4 SECTION -4 PLANS AND SPECIFICATONS........................................................5 SECTION -5 TIME OF COMMENCEMENT AND COMPLETION..........................5 SECTION -6 TIME IS OF THE ESSENCE ............................................................5 SECTION -7 EXCUSABLE DELAYS.....................................................................6 SECTION -8 EXTRA WORK.................................................................................6 SECTION -9 CHANGES IN PROJECT..................................................................7 SECTION - 10 LIQUIDATED DAMAGES FOR DELAY............................................7 SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................7 SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS.............................................................................................9 SECTION - 13 COMPLETION..................................................................................9 SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION.......................10 SECTION - 15 SURETY BONDS...........................................................................12 SECTION - 16 INSURANCE..................................................................................13 SECTION - 17 RISK AND INDEMNIFICATION......................................................22 SECTION - 18 TERMINATION...............................................................................22 SECTION - 19 WARRANTY...................................................................................22 SECTION -20 ASSIGNMENT................................................................................23 SECTION -21 RESOLUTION OF DISPUTES........................................................23 SECTION -22 SAFETY& HEALTH.......................................................................24 SECTION -23 NOTICES.......................................................................................24 C-CA-112818 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS THIS AGREEMENT is made and entered into, to be effective, this June 26, 2019, by and between W.M. Lyles Co., hereinafter referred to as 'CONTRACTOR" and the Orange County Sanitation District, hereinafter referred to as 'OCSD". WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OCSD and CONTRACTOR agree as follows: SECTION- 1 GENERAL CONDITIONS CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of OCSD. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions— Definitions. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 1 of 25 1. In the event of a conflict between one Contract Document and any of the other Contract Documents, the provisions in the document highest in precedence shall be controlling. The order of precedence of the Contract Documents is as follows: a. Supplemental Agreements—the last in time being the first in precedence b. Addenda issued prior to opening of Bids—the last in time being the first in precedence c. Contract Agreement d. Permits and other regulatory requirements e. Special Provisions f. General Conditions (GC) g. Notice Inviting Bids and Instruction to Bidders h. Geotechnical Baseline Report(GBR), if attached as a Contract Document I. Plans and Specifications—in these documents the order of precedence shall be: i. Specifications (Divisions 01-17) ii. Plans iii. General Requirements (GR) iv. Standard Drawings and Typical Details j. CONTRACTOR'S Bid 2. In the event of a conflict between terms within an individual Contract Document, the conflict shall be resolved by applying the following principles as appears applicable: a. Figured dimensions on the Contract Documents shall govern. Dimensions not specified shall be as directed by the ENGINEER. Details not shown or specified shall be the same as similar parts that are shown or specified, or as directed. Full-size details shall take precedence over scale Drawings as to C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 2 of 25 shape and details of construction. Specifications shall govern as to material and workmanship. b. The Contract Documents calling for the higher quality material or workmanship shall prevail. Materials or Work described in words, which so applied, have a well known technical or trade meaning shall be deemed to refer to such recognized standards. In the event of any discrepancy between any Drawings and the figures thereon, the figures shall be taken as correct. C. Scale Drawings, full-size details, and Specifications are intended to be fully complementary and to agree. Should any discrepancy between Contract Documents come to the CONTRACTOR's attention, or should an error occur in the efforts of others, which affect the Work, the CONTRACTOR shall notify the ENGINEER, in writing, at once. In the event any doubts or questions arise with respect to the true meaning of the Contract Documents, reference shall be made to the ENGINEER whose written decision shall be final. If the CONTRACTOR proceeds with the Work affected without written instructions from the ENGINEER, the CONTRACTOR shall be fully responsible for any resultant damage or defect. d. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to OCSD's ENGINEER, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the ENGINEER shall be final. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 3 of 25 In all matters relating to the acceptability of material, machinery or plant equipment; classifications of material or Work; the proper execution, progress or sequence of the Work; and quantities interpretation of the Contract Documents, the decision of the ENGINEER shall be final and binding, and shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board of Directors. B. Definitions Capitalized terms used in this Contract are defined in the General Conditions, Definitions. Additional terms may be defined in the Special Provisions. SECTION—2 MATERIALS AND LABOR CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by OCSD, to construct and complete the Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OCSD may settle such claims by making demand upon the Surety to this Contract. In the event of the failure or refusal of the Surely to satisfy said claims, OCSD may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees. SECTION —3 PROJECT The Project is described as: PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 4 of 25 SECTION-4 PLANS AND SPECIFICATONS The Work to be done is shown in a set of Plans and Specifications entitled: PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Said Plans and Specifications and any revision, amendments and addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. SECTION-5 TIME OF COMMENCEMENT AND COMPLETION CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth in the "Notice to Proceed" sent by OCSD, unless otherwise specified therein and shall diligently prosecute the Work to completion within six hundred forty four(644) calendar days from the date of the "Notice to Proceed" issued by OCSD, excluding delays caused or authorized by OCSD as set forth in Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions. The time for completion includes fourteen (14) calendar days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. SECTION —6 TIME IS OF THE ESSENCE Time is of the essence of this Contract. As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the Work covered by this Contract with that of all other contractors, subcontractors and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with Section 5 herein. OCSD shall have the right to assert complete control of the premises on which the Work is to be performed and shall have the right to decide the time or order in which the various portions of the Work shall be installed or the priority of the work of subcontractors, CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 5 of 25 and, in general, all matters representing the timely and orderly conduct of the Work of CONTRACTOR on the premises. SECTION—7 EXCUSABLE DELAYS CONTRACTOR shall only be excused for any delay in the prosecution or completion of the Project as specifically provided in General Conditions, "Extensions for Delay", and the General Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work". Extensions of time and extra compensation arising from such excusable delays will be determined in accordance with the General Conditions, "Extension of Time for Delay" and "Contract Price Adjustments and Payments", and extensions of time and extra compensation as a result of incurring undisclosed utilities will be determined in accordance with General Requirements, "By CONTRACTOR orOthers—Unknown Utilities during Contract Work". OCSD's decision will be conclusive on all parties to this Contract. SECTION—8 EXTRA WORK The Contract Price as set forth in Section 11, includes compensation for all Work performed by CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated representative of OCSD specifying the exact nature of the Extra Work and the amount of extra compensation to be paid all as more particularly set forth in Section 9 hereof and the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated Changes", and "Contract Price Adjustments and Payments". In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD shall extend the time fixed in Section 5 for completion of the Project by the number of days, if any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by OCSD's ENGINEER. The decision of the ENGINEER shall be final. C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 6 of 25 SECTION —9 CHANGES IN PROJECT OCSD may at any time, without notice to any Surely, by Change Order, make any changes in the Work within the general scope of the Contract Document, including but not limited to changes: 1. In the Specifications (including Drawings and designs); 2. In the time, method or manner of performance of the Work; 3. In OCSD-furnished facilities, equipment, materials, services or site; or 4. Directing acceleration in the performance of the Work. No change of period of performance or Contract Price, or any other change in the Contract Documents, shall be binding until the Contract is modified by a fully executed Change Order. All Change Orders shall be issued in accordance with the requirements set forth in the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)"and "OWNER Initiated Changes". SECTION — 10 LIQUIDATED DAMAGES FOR DELAY Liquidated Damages shall be payable in the amounts and upon the occurrence of such events or failure to meet such requirements or deadlines as provided in the Special Provisions, "Liquidated Damages and Incentives." SECTION — 11 CONTRACT PRICE AND METHOD OF PAYMENT A. OCSD agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in approved Change Orders, the sum of Three Million Forty-Eight Thousand Dollars ($3,048,000)as itemized on the Attached Exhibit"A". Upon satisfaction of the conditions precedent to payment set forth in the General Requirements, Additional General Requirements and General Conditions (including but CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 7 of 25 not limited to Sections entitled "Mobilization Payment Requirements" and "Payment Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the commencement of the job a schedule which shows: 1. A minimum of one payment to be made to the CONTRACTOR for each successive four(4) week period as the Work progresses, and 2. The due dates for the CONTRACTOR to submit requests for payment to meet the payment schedule. After the initial Net Progress Payment, and provided the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule, the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly payment date set forth in the schedule. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the ENGINEER, stating that the Work for which payment is demanded has been performed in accordance with the terms of the Contract Documents, and that the amount stated in the certificate is due under the terms of the Contract. Payment applications shall also be accompanied with all documentation, records, and releases as required by the Contract, Exhibit A, Schedule of Prices, and General Conditions, "Payment for Work—General". The Total amount of Progress Payments shall not exceed the actual value of the Work completed as certified by OCSD's ENGINEER. The processing of payments shall not be considered as an acceptance of any part of the Work. B. As used in this Section, the following defined terms shall have the following meanings: C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 8 of 25 1. "Net Progress Payment' means a sum equal to the Progress Payment less the Retention Amount and other qualified deductions (Liquidated Damages, slop payment notices, etc.). 2. "Progress Payment' means a sum equal to: a. the value of the actual Work completed since the commencement of the Work as determined by OCSD; b. plus the value of material suitably stored at the worksite, treatment plant or approved storage yards subject to or under the control of OCSD since the commencement of the Work as determined by OCSD; C. less all previous Net Progress Payments; d. less all amounts of previously qualified deductions; e. less all amounts previously retained as Retention Amounts. 3. "Retention Amount'for each Progress Payment means the percentage of each Progress Payment to be retained by OCSD to assure satisfactory completion of the Contract. The amount to be retained from each Progress Payment shall be determined as provided in the General Conditions—"Retained Funds; Substitution of Securities." SECTION — 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS Pursuant to Public Contract Code Section 22300 et seq., the CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." SECTION — 13 COMPLETION Final Completion and Final Acceptance shall occur at the time and in the manner specified in the General Conditions, "Final Acceptance and Final Completion', "Final Payment" and Exhibit A- Schedule of Prices. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 9 of 25 Upon receipt of all documentation, records, and releases as required by the Contract from the CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General Conditions. SECTION— 14 CONTRACTOR'S EMPLOYEES COMPENSATION A. Davis-Bacon Act: CONTRACTOR will pay and will require all Subcontractors to pay all employees on said Project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. B. General Prevailing Rate: OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime Work in the locality in which the Work is to be performed for each craft or type of Work needed to execute this Contract, and copies of the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR agrees that not less than said prevailing rates shall be paid to workers employed on this public works Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each job site, which shall be made available to any interested party upon request. C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 10 of 25 C. Forfeiture for Violation: CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00)for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any Subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the Work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. D. ADDrentices: Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the CONTRACTOR shall comply therewith K the prime contract involves Thirty Thousand Dollars ($30,000.00) or more. E. Workday: In the performance of this Contract, not more than eight(8) hours shall constitute a day's work, and the CONTRACTOR shall not require more than eight(8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (B) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at seg.) of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by CONTRACTOR or any Subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article. CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 11 of 25 F. Registration: Record of WapeS: Inspection: CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(a). SECTION — 15 SURETY BONDS CONTRACTOR shall, before entering upon the performance of this Contract,furnish Bonds approved by OCSD's General Counsel—one in the amount of one hundred percent(100%) of the Contract amount, to guarantee the faithful performance of the Work, and the other in the amount of one hundred percent (100%) of the Contract amount to guarantee payment of all claims for labor and materials furnished. As changes to the Contract occur via approved Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds are supplied to and approved by OCSD. Bonds must be issued by a Surety authorized by the State Insurance Commissioner to do business in California. The Performance Bond shall remain in full force and effect through the warranty period, as specified in Section 19 below. All Bonds required to be submitted relating to this Contract must comply with California Code of Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety insurer under penalty of perjury, or the fact of execution of each Bond shall be duly acknowledged before an officer authorized to take and certify acknowledgments, and either one of the following conditions shall be satisfied: C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 12 of 25 A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by- laws, or other instrument, duly certified by the proper authority and attested by the seal of the insurer entitling or authorizing the person who executed the Bond to do so for and on behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or B. A copy of a valid power of attorney is attached to the Bond. SECTION — 16 INSURANCE CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against claims for injuries to persons, or damages to property which may arise from or in connection with the performance of the Work hereunder, and the results of that Work by CONTRACTOR, its agents, representatives, employees, or Subcontractors, in amounts equal to the requirements set forth below. CONTRACTOR shall not commence Work under this Contract until all insurance required under this Section is obtained in a form acceptable to OCSD, nor shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all of the foregoing insurance coverages in force through the point at which the Work under this Contract is fully completed and accepted by OCSD pursuant to the provisions of the General Conditions, "Final Acceptance and Final Completion". Furthermore, CONTRACTOR shall maintain all of the foregoing insurance coverages in full force and effect throughout the warranty period, commencing on the date of Final Acceptance. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of OCSD by CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, inclusive of all changes to the Contract Documents made in accordance with the provisions of the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)"and/or"OWNER Initiated CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 13 of 25 Changes", the following insurance in amounts not less than the amounts specified. OCSD reserves the right to amend the required limits of insurance commensurate with the CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter OCSD premisestworksite without Dossessina the reauired insurance coveraae. CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by agencies from whom permits shall be obtained for the Work and any other third parties from whom third party agreements are necessary to perform the Work(collectively, the "Third Parties"), The Special Provisions may list such requirements and sample forms and requirements from such Third Parties may be included in an attachment to the General Requirements. CONTRACTOR bears the responsibility to discover and comply with all requirements of Third Parties, including meeting specific insurance requirements, that are necessary for the complete performance of the Work. To the extent there is a conflict between the Third Parties' insurance requirements and those set forth by OCSD herein, the requirement(s) providing the more protective coverage for both OSCD and the Third Parties shall control and be purchased and maintained by CONTRACTOR. A. Limits of Insurance 1. General Liability: Three Million Dollars ($3,000,000) per occurrence and a general aggregate limit of Two Million Dollars ($2,000,000)for bodily injury, personal injury and property damage. Coverage shall include each of the following: a. Premises-Operations. b. Products and Completed Operations, with limits of at least Three Million Dollars ($3,000,000) per occurrence and a general aggregate limit of Two Million Dollars ($2,000,000)which shall be in effect at all times during the warranty period set forth in the Warranty section herein, and as set forth in the General Conditions, "Warranty(CONTRACTOR's Guarantee)", plus any C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 14 of 25 additional extension or continuation of time to said warranty period that may be required or authorized by said provisions. C. Broad Form Property Damage, expressly including damage arising out of explosion, collapse, or underground damage. d. Contractual Liability, expressly including the indemnity provisions assumed under this Contract. e. Separation of Insured Clause, providing that coverage applies separately to each insured, except with respect to the limits of liability. f. Independent CONTRACTOR's Liability. To the extent first dollar coverage, including defense of any claim, is not available to OCSD or any other additional insured because of any SIR, deductible, or any other form of self insurance, CONTRACTOR is obligated to assume responsibility of insurer until the deductible, SIR or other condition of insurer assuming its defense and/or indemnity has been satisfied. CONTRACTOR shall be responsible to pay any deductible or SIR. g. If a crane will be used, the General Liability insurance will be endorsed to add Riggers Liability coverage or its equivalent to cover the usage of the crane and exposures with regard to the crane operators, riggers and others involved in using the crane. h. If divers will be used, the General Liability insurance will be endorsed to cover marine liability or its equivalent to cover the usage of divers. 2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 15 of 25 Either(1)a combined single limit of Two Million Dollars ($2,000,000) and a general aggregate limit of Two Million Dollars ($2,000,000)for bodily injury, personal injury and property damage; Or alternatively, (2) Two Million Dollars ($2,000,000) per person for bodily injury and Two Million Dollars ($2,000,000) per accident for property damage. 3. Umbrella Excess Liability: The minimum limits of general liability and automobile liability insurance required, as set forth above, shall be provided for either in a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automobile liability. 4. Drone Liability Insurance: If a drone will be used, drone liability insurance must be maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a form acceptable by OCSD. 5. Worker's Compensation/Employer's Liability: CONTRACTOR shall provide such Worker's Compensation Insurance as required by the Labor Code of the State of California, including employers liability with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage with regard to Jones Act claims. Where permitted by law, CONTRACTOR hereby waives all rights of recovery by subrogation because of deductible clauses, inadequacy of limits of any insurance policy, limitations or exclusions of coverage, or any other reason against OCSD, its or their officers, agents, or employees, and any other contractor or subcontractor C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 16 of 25 performing Work or rendering services on behalf of OCSD in connection with the planning, development and construction of the Project. In all its insurance coverages related to the Work, CONTRACTOR shall include clauses providing that each insurer shall waive all of its rights of recovery by subrogation against OCSD, its or their officers, agents, or employees, or any other contractor or subcontractor performing Work or rendering services at the Project. Where permitted by law, CONTRACTOR shall require similar written express waivers and insurance clauses from each of its Subcontractors of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a)would otherwise have a duty of indemnification, contractual or otherwise, (b)did not pay the insurance premium, directly or indirectly, and (c)whether or not such individual or entity has an insurable interest in the property damaged. 6. Pollution Liability Insurance: CONTRACTOR shall purchase and maintain insurance for pollution liability covering bodily injury, property damage (including loss of use of damaged property or property that has not been physically injured or destroyed), cleanup costs, and defense costs (including costs and expenses for investigation, defense, or settlement of claims). Coverage shall carry limits of at least One Million Dollars ($1,000,000) and shall apply to sudden and non-sudden pollution conditions (including sewage spills), both at the site or needed due to migration of pollutants from the site, resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials, or other irritants, contaminants or pollutants. If CONTRACTOR provides coverage written on a claims-made basis, OCSD has the right to approve or reject such coverage in its own discretion. If written on a claims- CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 17 of 25 made basis, the CONTRACTOR warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this Contract, and that continuous coverage will be maintained, or an extended discovery period will be exercised, for a period of two years beginning from the time that the Project under this Contract is completed. 6. Limits are Minimums: If CONTRACTOR maintains higher limits than the minimums shown in this Section, OCSD requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. B. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by OCSD. At the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self- insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration, and defense expenses. C. Other Insurance Provisions 1. Each such policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to contain, the following provisions: a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all public agencies from whom permits will be obtained, and their Directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of CONTRACTOR at or from any of the sites of OCSD in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 18 of 25 b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under this policy. 2. Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days prior written notice by certified mail, return receipt requested, and that coverage shall not be cancelled for non-payment of premium except after ten (10)days prior written notice by certified mail, return receipt requested. Should there be changes in coverage or an increase in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript endorsement from its insurer giving 30 days prior notice of such an event to OCSD, or to have its insurance broker/agent send to OCSD a certified letter describing the changes in coverage and any increase in deductible or SIR amounts. The certified letter must be sent Attention: Risk Management and shall be received not less than twenty (20) days prior to the effective date of the change(s). The letter must be signed by a Director or Officer of the broker/agent and must be on company letterhead, and may be sent via e-mail in pdf format. 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s)will be obtained, each policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to specify by name the public agency and its legislative members, officers, agents, CONSULTANTS, and employees, to be additional insureds. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 19 of 25 D. Acceptability of Insurers Insurers must have an "A-", or better, Policyholder's Rating, and a Financial Rating of at least Class VIII, or better, in accordance with the most current A.M. Best Rating Guide. OCSD recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept State Compensation Insurance Fund for the required policy of worker's compensation insurance, subject to OCSD's option, at any time during the term of this Contract, to require a change in insurer upon twenty (20) days written notice. Further, OCSD will require CONTRACTOR to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20)days of written notice to CONTRACTOR by OCSD or its agent. E. Verification of Coverage CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements affecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by OCSD before Work commences. OCSD reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by these Specifications at any time. F. Subcontractors CONTRACTOR shall be responsible to establish insurance requirements for any Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations and work. OCSD and any public agency issuing permits for the Project must be named as "Additional Insured" on any General Liability or Automobile Liability policy obtained by a Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 20 of 25 all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced required documents. G. Required Forms and Endorsements 1. Required ACORD Form a. Certificate of Liability Form 25 2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are shown, they are listed in order of preference) In the event any of the following forms are cancelled by Insurance Services Office, Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied. a. Commercial General Liability Form CG-0001 10 01 b. Additional Insured Including Form CG-2010 10 01 and Products-Completed Operations Form CG-2037 10 01 C. Waiver of Transfer of Rights of Form CG-2404 11 85; or Recovery Against Others to Us/ Form CG-2404 10 93 Waiver of Subrogation 3. Required State Compensation Insurance Fund Endorsements a. Waiver of Subrogation Endorsement No. 2570 b. Cancellation Notice Endorsement No. 2065 4. Additional Required Endorsements a. Notice of Policy Termination Manuscript Endorsement 5. Pollution Liability Endorsements There shall be a Separation of Insured Clause or endorsement, providing that coverage applies separately to each insured, except with respect to the limits of liability. There shall also be an endorsement or policy language containing a waiver of subrogation rights on the part of the insurer. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 21 of 25 OCSD, its directors, officers, agents, CONSULTANTS and employees and all public agencies from whom permits will be obtained as well as their directors, officers, agents, and employees shall be included as insureds under the policy. Any additional insured endorsement shall contain language at least as broad as the coverage language contained in ISO form CG 20 10 11 85 or alternatively in both CG 20 10 10 01 and CG 20 37 10 01 together. SECTION- 17 RISK AND INDEMNIFICATION All Work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save, indemnify, defend, and keep OCSD and others harmless as more specifically set forth in General Conditions, "General Indemnification". SECTION — 18 TERMINATION This Contract may be terminated in whole or in part in writing by OCSD in the event of substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may be terminated by OCSD for its convenience provided that such termination is effectuated in a manner and upon such conditions set forth more particularly in General Conditions, "Termination for Default" and/or"Termination for Convenience", provided that no termination may be effected unless proper notice is provided to CONTRACTOR at the time and in the manner provided in said General Conditions. If termination for default or convenience is effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be made at the time and in the manner provided in the General Conditions, "Termination for Default" and "Termination for Convenience". SECTION — 19 WARRANTY The CONTRACTOR agrees to perform all Work under this Contract in accordance with the Contract Documents, including OCSD's designs, Drawings and Specifications. C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 22 of 25 The CONTRACTOR guarantees for a period of at least one (1)year from the date of Final Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final Completion' that the completed Work is free from all defects due to faulty materials, equipment or workmanship and that it shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs of any damage to other parts of the system resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, OCSD may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any corrected deficiency until the later of(1)the remainder of the original one-year warranty period; or (2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and the Payment Bond shall remain in full force and effect through the guarantee period. The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's other express or implied assurances under this Contract, including but not limited to specific manufacturer or other extended warranties specked in the Plans and Specifications, or state law and in no way diminish any other rights that OCSD may have against the CONTRACTOR for faulty materials, equipment or Work. SECTION-20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety. SECTION —21 RESOLUTION OF DISPUTES OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 23 of 25 arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims provisions as set forth in the General Conditions and as otherwise required by law. SECTION—22 SAFETY & HEALTH CONTRACTOR shall comply with all applicable safety and health requirements mandated by federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as well as these Contract Documents, including but not limited to the General Requirements, Section entitled "Safety" and Exhibit B OCSD Safety Standards. SECTION—23 NOTICES Any notice required or permitted under this Contract may be given by ordinary mail at the address set forth below. Any party whose address changes shall notify the other party in writing. TO OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Clerk of the Board Copy to: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Construction Manager Bradley R. Hogin, Esquire Woodruff, Spradlin & Smart 555 Anton Boulevard Suite 1200 Costa Mesa, California 92626 TO CONTRACTOR: W.M. Lyles Co. 1210 West Olive Avenue Fresno, CA 93728 Copy to: Robert P. Saleen W.M. Lyles Co. 1210 West Olive Avenue Fresno, CA 93728 C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 24 of 25 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: W.M. Lyles Co. 1210 West Olive Avenue Fresno, CA 93728 By Printed Name Its CONTRACTOR's State License No. 422390 (Expiration Date—5/31/2020) OCSD: Orange County Sanitation District By David John Shawver Board Chairman By Kelly A. Lore Clerk of the Board By Lorenzo Tyner Assistant General Manager, Director Administrative Services CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 25 of 25 EXHIBIT A SCHEDULE OF PRICES C-EXA-080414 TABLE OF CONTENTS EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION ...........................................................................1 EXA-2 PROGRESS PAYMENTS.................................................................................1 EXA-3 RETENTION AND ESCROW ACCOUNTS.......................................................1 EXA-4 STOP PAYMENT NOTICE...............................................................................3 EXA-5 PAYMENT TO SUBCONTRACTORS...............................................................3 EXA-6 PAYMENT OF TAXES......................................................................................3 EXA-7 FINAL PAYMENT.............................................................................................4 EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT....5 ATTACHMENT 1 -CERTIFICATION FOR REQUEST FOR PAYMENT.........................7 ATTACHMENT 2-SCHEDULE OF PRICES..................................................................8 C-EXA-080414 EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION CONTRACTOR will be paid the Contract Price according to the Schedule of Prices, and all other applicable terms and conditions of the Contract Documents. EXA-2 PROGRESS PAYMENTS Progress payments will be made in accordance with all applicable terms and conditions of the Contract Documents, including, but not limited to: 1. Contract Agreement—Section 11 —"Contract Price and Method of Payment;" 2. General Conditions—"Payment—General", 3. General Conditions—"Payment—Applications for Payment"; 4. General Conditions—"Payment—Mobilization Payment Requirements;" 5. General Conditions—"Payment—Itemized Breakdown of Contract Lump Sum Prices"; 6. General Conditions—"Contract Price Adjustments and Payments'; 7. General Conditions—"Suspension of Payments"; 8. General Conditions—"OCSD's Right to Withhold Certain Amounts and Make Application Thereof"; and 9. General Conditions—"Final Payment." EXA3 RETENTION AND ESCROW ACCOUNTS A. Retention: OCSD shall retain a percentage of each progress payment to assure satisfactory completion of the Work. The amount to be retained from each progress payment shall be determined as provided in General Conditions— "Retained Funds; Substitution of Securities". In all contracts between CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not exceed the percentage specified in the Contract Documents. CONFORMED C-EXA-080414 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 1 of 8 B. Substitution of Securities: CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." Payment of Escrow Agent: In lieu of substitution of securities as provided above, the CONTRACTOR may request and OCSD shall make payment of retention earned directly to the escrow agent at the expense of the CONTRACTOR. At the expense of the CONTRACTOR, the CONTRACTOR may direct the investment of the payments into securities consistent with Government Code §16430 and the CONTRACTOR shall receive the interest earned on the investments upon the same terms provided for in this article for securities deposited by the CONTRACTOR. Upon satisfactory completion of the Contract, the CONTRACTOR shall receive from the escrow agent all securities, interest and payments received by the escrow agent from OCSD, pursuant to the terms of this article. The CONTRACTOR shall pay to each Subcontractor, not later than twenty(20) calendar days after receipt of the payment, the respective amount of interest earned, net of costs attributed to retention withheld from each Subcontractor, on the amount of retention withheld to ensure the performance of the Subcontractor. The escrow agreement used by the escrow agent pursuant to this article shall be substantially similar to the form set forth in §22300 of the California Public Contract Code. C. Release of Retention: Upon Final Acceptance of the Work, the CONTRACTOR shall submit an invoice for release of retention in accordance with the terms of the Contract. D. Additional Deductibles: In addition to the retentions described above, OCSD may deduct from each progress payment any or all of the following: 1. Liquidated Damages that have occurred as of the date of the application for progress payment; 2. Deductions from previous progress payments already paid, due to OCSD's discovery of deficiencies in the Work or non-compliance with the Specifications or any other requirement of the Contract; 3. Sums expended by OCSD in performing any of the CONTRACTOR'S obligations under the Contract that the CONTRACTOR has failed to perform, and; 4. Other sums that OCSD is entitled to recover from the CONTRACTOR under the terms of the Contract, including without limitation insurance deductibles and assessments. C-EXA-080414 CONFORMED PROJECT NO.MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 2 of 8 The failure of OCSD to deduct any of the above-identified sums from a progress payment shall not constitute a waiver of OCSD's right to such sums or to deduct them from a later progress payment. EXA4 STOP PAYMENT NOTICE In addition to other amounts properly withheld under this article or under other provisions of the Contract, OCSD shall retain from progress payments otherwise due the CONTRACTOR an amount equal to one hundred twenty-five percent (125%) of the amount claimed under any stop payment notice under Civil Code §9350 at. seq. or other lien filed against the CONTRACTOR for labor, materials, supplies, equipment, and any other thing of value claimed to have been furnished to and/or incorporated into the Work; or for any other alleged contribution thereto. In addition to the foregoing and in accordance with Civil Code §9358 OCSD may also satisfy its duty to withhold funds for stop payment notices by refusing to release funds held in escrow pursuant to public receipt of a release of stop payment notice executed by a stop payment notice claimant, a stop payment notice release bond, an order of a court of competent jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR has resolved such claim by settlement. EXA-5 PAYMENT TO SUBCONTRACTORS Requirements 1. The CONTRACTOR shall pay all Subcontractors for and on account of Work performed by such Subcontractors, not later than seven (7)days after receipt of each progress payment as required by the California Business and Professions Code §7108.5. Such payments to Subcontractors shall be based on the measurements and estimates made pursuant to article progress payments provided herein. 2. Except as specifically provided by law, the CONTRACTOR shall pay all Subcontractors any and all retention due and owing for and on account of Work performed by such Subcontractors not later than seven (7) days after CONTRACTOR'S receipt of said retention proceeds from OCSD as required by the California Public Contract Code §7107. EXA-6 PAYMENT OF TAXES Unless otherwise specifically provided in this Contract, the Contract Price includes full compensation to the CONTRACTOR for all taxes. The CONTRACTOR shall pay all federal, state, and local taxes, and duties applicable to and assessable against any Work, including but not limited to retail sales and use, transportation, export, import, business, and special taxes. The CONTRACTOR shall ascertain and pay the taxes when due. The CONTRACTOR will maintain auditable records, subject to OCSD reviews, confirming that tax payments are current at all times. CONFORMED C-EXA-080414 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 3 of 8 EXA-7 FINAL PAYMENT After Final Acceptance of the Work, as more particularly set forth in the General Conditions, "Final Acceptance and Final Completion", and after Resolution of the Board authorizing final payment and satisfaction of the requirements as more particularly set forth in General Conditions—"Final Payment", a final payment will be made as follows: 1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an application for Final Payment to OCSD, including: a. The proposed total amount due the CONTRACTOR, segregated by items on the payment schedule, amendments, Change Orders, and other bases for payment; b. Deductions for prior progress payments; c. Amounts retained; d. A conditional waiver and release on final payment for each Subcontractor(per Civil Code Section 8136); e. A conditional waiver and release on final payment on behalf of the CONTRACTOR(per Civil Code Section 8136); f. List of Claims the CONTRACTOR intends to file at that time or a statement that no Claims will be filed, g. List of pending unsettled claims, stating claimed amounts, and copies of any and all complaints and/or demands for arbitration received by the CONTRACTOR; and h. For each and every claim that resulted in litigation or arbitration which the CONTRACTOR has settled, a conformed copy of the Request for Dismissal with prejudice or other satisfactory evidence the arbitration is resolved. 2. The application for Final Payment shall include complete and legally effective releases or waivers of liens and stop payment notices satisfactory to OCSD, arising out of or filed in connection with the Work. Prior progress payments shall be subject to correction in OCSD's review of the application for Final Payment. Claims filed with the application for Final Payment must be otherwise timely under the Contract and applicable law. 3. Within a reasonable time, OCSD will review the CONTRACTOR'S application for Final Payment. Any recommended changes or corrections will then be forwarded to the CONTRACTOR. Within ten (10) calendar days after receipt of recommended changes from OCSD, the CONTRACTOR will make the changes, or list Claims that will be filed as a result of the changes, and shall submit the revised application for Final Payment. Upon C-EXA-080414 CONFORMED PROJECT NO.MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 4 of 8 acceptance by OCSD, the revised application for Final Payment will become the approved application for Final Payment. 4. If no Claims have been filed with the initial or any revised application for Final Payment, and no Claims remain unsettled within thirty-five (35) calendar days after Final Acceptance of the Work by OCSD, and agreements are reached on all issues regarding the application for Final Payment, OCSD, in exchange for an executed release, satisfactory in form and substance to OCSD, will pay the entire sum found due on the approved application for Final Payment, including the amount, if any, allowed on settled Claims. 5. The release from the CONTRACTOR shall be from any and all Claims arising under the Contract, except for Claims that with the concurrence of OCSD are specifically reserved, and shall release and waive all unreserved Claims against OCSD and its officers, directors, employees and authorized representatives. The release shall be accompanied by a certification by the CONTRACTOR that: a. It has resolved all Subcontractors, Suppliers and other Claims that are related to the settled Claims included in the Final Payment; b. It has no reason to believe that any party has a valid claim against the CONTRACTOR or OCSD which has not been communicated in writing by the CONTRACTOR to OCSD as of the date of the certificate; c. All warranties are in full force and effect, and; d. The releases and the warranties shall survive Final Payment. 6. If any claims remain open, OCSD may make Final Payment subject to resolution of those claims. OCSD may withhold from the Final Payment an amount not to exceed one hundred fifty percent (150%) of the sum of the amounts of the open claims, and one hundred twenty-five percent(125%) of the amounts of open stop payment notices referred to in article entitled stop payment notices herein. 7. The CONTRACTOR shall provide an unconditional waiver and release on final payment from each Subcontractor and Supplier providing Work under the Contract (per Civil Code Section 8138) and an unconditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8138)within thirty(30) days of receipt of Final Payment. EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT Notwithstanding OCSD's acceptance of the application for Final Payment and irrespective of whether it is before or after Final Payment has been made, OCSD shall not be precluded from subsequently showing that: 1. The true and correct amount payable for the Work is different from that previously accepted; CONFORMED C-EXA-080414 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 5 of 8 2. The previously-accepted Work did not in fact conform to the Contract requirements, or; 3. A previous payment or portion thereof for Work was improperly made. OCSD also shall not be stopped from demanding and recovering damages from the CONTRACTOR, as appropriate, under any of the foregoing circumstances as permitted under the Contract or applicable law. C-EXA-080414 CONFORMED PROJECT NO.MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 6 of 8 ATTACHMENT 1 —CERTIFICATION FOR REQUEST FOR PAYMENT I hereby certify under penalty of perjury as follows: That the claim for payment is in all respects true, correct; that the services mentioned herein were actually rendered and/or supplies delivered to OCSD in accordance with the Contract. I understand that it is a violation of both the federal and California False Claims Acts to knowingly present or cause to be presented to OCSD a false claim for payment or approval. A claim includes a demand or request for money. It is also a violation of the False Claims Acts to knowingly make use of a false record or statement to get a false claim paid. The term "knowingly" includes either actual knowledge of the information, deliberate ignorance of the truth or falsity of the information, or reckless disregard for the truth or falsity of the information. Proof of specific intent to defraud is not necessary under the False Claims Acts. I understand that the penalties under the Federal False Claims Act and State of California False Claims Act are non-exclusive, and are in addition to any other remedies which OCSD may have either under contract or law. I hereby further certify, to the best of my knowledge and belief, that: 1. The amounts requested are only for performance in accordance with the Specifications, terms, and conditions of the Contract; 2. Payments to Subcontractors and Suppliers have been made from previous payments received under the Contract, and timely payments will be made from the proceeds of the payment covered by this certification; 3. This request for progress payments does not include any amounts which the prime CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in accordance with the terms and conditions of the subcontract; and 4. This certification is not to be construed as Final Acceptance of a Subcontractor's performance. Name Title Date CONFORMED C-EXA-080414 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 7 of 8 ATTACHMENT 2—SCHEDULE OF PRICES See next pages for Bid Submittal Forms—(W.M. Lyles, Co.): BF-14 Schedule of Prices, Pages (1-2) C-EXA-080414 CONFORMED PROJECT NO.MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 8 of 8 Bid Submitted By: W.M.Lyles Co. (Name of Flrm) BF-14 SCHEDULE OF PRICES INSTRUCTIONS A. General For Unit Prices, it is understood that the following quantities are approximate only and are solely for the purpose of estimating the comparison of Bids, and that the actual value of Work will be computed based upon the actual quantities in the completed Work,whether they be more or less than those shown. CONTRACTOR'S compensation for the Work under the Contract Documents will be computed based upon the lump sum amount of the Contract at time of award, plus any additional or deleted costs approved by OCSD via approved Change Orders, pursuant to the Contract Documents. Bidder shall separately price and accurately reflect costs associated with each line item, leaving no blanks. Any and all modifications to the Bid must be initialed by an authorized representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid. Bidders are reminded of Instruction to Bidders, Discrepancy in Bid Items,which, in summary, provides that the total price for each Rem shall be based on the Unit Price listed for each item multiplied by the quantity; and the correct Total Price for each Rem shall be totaled to determine the Total Amount of Bid. All applicable costs including overhead and profit shall be reflected in the respective unit costs and the TOTAL AMOUNT OF BID. The Bid price shall include all costs to complete the Work, including profit,overhead, etc., unless otherwise specified in the Contract Documents. All applicable sales taxes, state and/or federal, and any other special taxes, patent rights or royalties shall be included in the prices quoted in this Bid. B. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID. Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials,equipment and services for the construction of the Project per the Contract Documents. BF-14 SCHEDULE OF PRICES C-BF-121817 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 1 of 2 Old Submitted Bin w.M.LNaa Co. EIlHIBIT A SCHEDULE OF PRICES BASE BID ITEMS(Refer to Note 1 in the Instructions): Wectlptlon Mwww . W Unll Price EMMSI Mce t Mobllb ation:The amount far this Bid Item Shell not exceed specified amount and shall Include all work not included in other items and shall be in Lump Sum 1 E150,000.00 $150,000.00 conformance with the Contract Documents for the lump sum price of... 2. Clarifier Repairs:The amount for this Bid Item includes all fees,labor, materials,and equipment necessary for do replacement of the chain and flight clarifier equipment within the rectangularrk clarifier and all other wo Earl1 $ = E2J898� aa� not included in Nam Ne.1 in conformance with the Contract Documents SUBTOTALBASEBIDITEMSNO.I THROUGH NO.2 (AWARDAMOUNT) $3, 04 8, aao TOTAL AMOUNT OF BID (BASIS OF AWARD) E 3,OL{9, O a a BF-14 SCHEDULE OF PRICES C-BF-121817 PROJECT NO.MP-20 P2 SECONDARY CLARIFIER REPAIRS Pepe 2 or OPERATIONS COMMITTEE Melting Dat0 TOBE.Of Dir. 06/OS119 O6/26/19 AGENDA REPORT Item Item Number 6 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: PLANT NO. 1 ICS NETWORK EXTENSION, PROJECT NO. FE17-05 GENERAL MANAGER'S RECOMMENDATION A. Receive and file Bid Tabulation and Recommendation for Plant No. 1 ICS Network Extension, Project No. FE17-05; B. Receive and file Clarification Request No. 2 issued to ODC Engineering and Technology on April 29, 2019; C. Receive and file CDC's response to Clarification Request No. 2 received by the Orange County Sanitation District on May 6, 2019; D. Receive and file Award Recommendation Notice issued to ODC on May 17, 2019 informing them of the Orange County Sanitation District's findings and subsequent recommendation to reject their Bid as non-responsive; E. Reject low bid from CDC Engineering and Technology as non-responsive; F. Receive and file Orange County Sanitation District's Award Recommendation Notice issued to all Bidders dated May 17, 2019; G. Award a construction contract to RP Controls, for the Plant No. 1 ICS Network Extension, Project No. FE17-05, for a total amount not to exceed $321,889; and H. Approve a contingency of$32,188 (10%). BACKGROUND Plant No. 1 has a network of programmable logic controllers (PLCs) and operator workstations that are essential for monitoring and controlling the plant processes. The operator workstations are currently connected to the office network, which communicates to the PLCs using an outdated Modbus Plus network. Failure in the network would require operators to locally observe and control each process area, which is not practical with normal staff levels. The Department of Homeland Security recommended that the PLCs and operator workstation be connected to a segregated industrial control systems (ICS) network to improve cybersecurity. An ICS networkfor Plant No. 1 was built underthe Power Monitoring and Control Systems project, Project No. J-33-3. A few projects have since migrated several of the process Page 1 of 4 PI-Cs to the ICS network. This project will migrate the remaining PI-Cs and all the process operator workstations over to the ICS network at Plant No. 1. These risks are currently being resolved at Plant No. 2 through Outfall Low Flow Pump Station, Project J-117B, which is currently under construction. RAMIFICATIONS OF NOT TAKING ACTION Without this project, the existing network will become less reliable and cause control system problems as aging equipment fails and replacement parts become increasingly difficult to obtain. In addition, the lack of separation between the control system network and the office network could pose a cybersecurity risk. RELEVANT STANDARDS • Protect Orange County Sanitation District assets • 24/7/365 treatment plant reliability • California Public Contract Code Section 20103.8: Award Construction Contract to lowest responsive, responsible bidder PROBLEM The existing PLC and workstation network resides on the Plant No. 1 business network, which poses cybersecurity risks. In addition, the PI-Cs communicate to the workstations through an older communication protocol. The equipment that supports that protocol is obsolete which puts the process network at risk. PROPOSED SOLUTION Provide the conduit, cabling, and network hardware required to connect various PLCS and operator workstations at Plant No. 1 to the new ICS network at Plant No. 1. TIMING CONCERNS The project is urgent due to the risk of failure of existing network components. RAMIFICATIONS OF NOT TAKING ACTION Without this project, the existing network will become less reliable and cause control problems as aging equipment fails and replacement parts become increasingly difficult to obtain. In addition, the SCADA network will be exposed to traffic on the business network which is a cybersecurity risk. PRIOR COMMITTEE/BOARD ACTIONS N/A Page 2 of 4 ADDITIONAL INFORMATION The Orange County Sanitation District (Sanitation District) advertised for bids on January 22, 2019, and three sealed bids were received on March 12, 2019. A summary of the bids follows: Engineer's Estimate $456,000 Bidder Amount of Bid CDC Engineering &Technology $292,000 RP Controls $321,889 M.B. Herzog Electric $525,000 The bids were evaluated in accordance with the Sanitation District's policies and procedures. After evaluation, CDC Engineering and Technology (ODC), the apparent low bidder, was found to be non-responsive based on the following reason: The Bid failed to provide the information required under Part 5, BID SUBMITTAL FORMS, BF-4 — PERFORMANCE HISTORY AND FINANCIAL RESOURCES, Section A, specifically, the following bid requirement: "2. Bidder shall list at least three (3) projects completed within the past ten (10) years involving construction installation or modification of Programmable Logic Controller(PLC) cabinets which are similar in nature, scope, complexity, and cost to this IFB." ODC listed a total of four projects, one of which was outside the number of years required per the bid requirements and was removed from consideration. Only one of the three remaining projects listed in the bid requirements met the requirement for PLC cabinet experience. On April 29, 2019, the Sanitation District issued a letter titled "Clarification Request No. 2" to CDC Engineering and Technology requesting information that clearly demonstrates CDC could meet the bid requirements. That letter stated that failure to provide this information would render the bid non-responsive. On May 6, 2019, the Sanitation District received CDC's response. The Sanitation District reviewed the response and determined that it did not provide the information requested in the Clarification Request No. 2 and required by the bid requirements. An Award Notice was sent to ODC on May 17, 2019 informing them of the Sanitation District's finding that their bid was non-responsive and subsequent recommendation to reject their Bid as non-responsive. An evaluation of the second apparent low bidder, RP Controls, determined the bid to be both responsive and responsible. Based on this, an Award Notice was sent to all the bidders on May 17, 2019, informing them of the intent of Sanitation District staff to recommend award of the construction contract to RP Controls. Page 3 of 4 Staff recommends awarding a construction contract to the lowest responsive bidder, RP Controls, for Plant No. 1 ICS Network Extension, Project No. FE17-05, for a total amount not to exceed $321,889. CEQA The project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations sections 15301. Section 15301 (Class 1) exempts from CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination' including "(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services." This project consists of minor alterations to existing public facilities. A Notice of Exemption will be filed with the OC Clerk-Recorder after the Sanitation District Board award of the construction contract. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted under the Small Construction Projects Program (M-FE), Fiscal Years 2018-19 and 2019-20 budget, Section 8, Page 47, and the budget is sufficient for the recommended action. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (ij .ocsd.corn with the complete agenda package: • Clarification Request No. 2 Issued to ODC April 29, 2019 • ODC's Response to Clarification Request No. 2 Received May 6, 2019 • Award Recommendation Notice Issued to ODC May 17, 2019 • Award Recommendation Notice Issued to All Bidders May 17, 2019 • Construction Contract SH:dm:sa:gc Page 4 d 4 serving: Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 714.962.2411 • wwmomd.com Brea Buena Park April 29, 2019 Via Email: OVEDDAGANGdomail.com Cypress &Overnight Mail Fountain Valley Oved Dagan Fullerton ODC Engineering and Technology Garden Grove 5675 Walnut Ridge Dr. Agoura Hills CA, 91301 Huntington Beach SUBJECT: Clarification Request No. 2 nvins Re: Project FE17-05, Plant 1 ICS Network Extension La Hab OCSD has contacted the references your firm provided for the projects listed in La Palma BF-4, A. of your Bid. Information provided by these references indicate that the following listed projects do not meet the minimum experience requirements for Los Alaml , Programmable Logic Controller(PLC) Cabinets: Newport Bea 1. *4 Elementary School Safety and Technology" Orange 2. "Normont Elementary School' Placentia Please note that Form BF-4, A. of the Invitation For Bid (IFB) states, in part, that "Bidder shall list at least three (3) projects completed within the past ten (10) Santa Ana years involving construction installation or modification of Programmable Logic Controller(PLC) Cabinets which are similar in nature, scope, complexity, and Seal Beach cost to this IFB." Stanton OCSD requests that you provide the information required in paragraphs 4 and 5 Tustin of BF-4, A. of the IFB. This information must include at least 2 other projects which demonstrate that your firm meets the minimum experience requirements Villa Park regarding construction, installation, or modification of PLC Cabinets that are County of orange similar in nature, scope, complexity, and cost to this IFB. Failure to provide this information shall render your Bid as Non-Responsive. Costa Mesa Sanitary District To meet our evaluation schedule, your written response must be received by 12:00 pm (noon) on Monday, May 6, 2019. Please send your reply via email Midway City Sanitary District to constructiontccDocsd.com, with the subject line: "FE17-05 - CDC Response to Clarification Request No. 2". Irvine Ranch Water District Yorba Li Water Dia Brandon Garcia Contract Administrator BG:YP Our Mission: To protect public health and the environment by Revision 110714 providing effective wastewater collection, treatment, and recycling. From: Construction Sent: Monday,April 29,2019 10:16 AM To: 'oveddagan@gmail.com' Subject: FE17-05 Clarification Request 2 -CDC Engineering Attachments: FE17-05 Clarification Request 2 -CDC.pdf Mr.Dagan, Attached is the Clarification Request No. 2 of Project FE17-05 which was overnight mailed to your attention today.your written response must be received by 12:00 pm(noon)on Monday,May 6,2019. Orange County Sanitation District Contracts, Purchasing&Material Management Division w ocsd.com 1 Page 1 of 1 GSII (awXGLS wwOw.g o co5m jShip From Tracking#: 544613530 PAS !ORANGE COUNTY SANITATION DISTRICT iYAI PHONGMEKHIN III IIIIIIIIIII IIII III I I IIII III 13084 ELLIS4 ELLIS AVE FOUNTAIN VALLEY, CA 92708 ;Ship To �iODC ENGINEERING&TECHNOLOGY '.OVER DAGAN AGOURA HILLS 5675 WALNUT RIDGE DRIVE AGOURA HILLS, CA 91301 S91301A COD: $0.00 Weight: 0 lb(s) ;Reference: 'FE17-05 CLARIFICATION REQUEST 2 Delivery Instructions. .Signature Type: ADULT 1915110 BUR CA913-D 0 Print Dale:4/29/2019 1):19 AM LABEL INSTRUCTIONS: Do not copy or reprint this label for additional shipments-each package must have a unique baroode. Step 1: Use the"Print Label"button on this page to print the shipping label on a laser or Inkjet printer. Step 2: Fold this page In half. Step 3: Securely attach this label to your package and do not cover the bafcode. TERMS AND CONDITIONS: By giving us your shipment to deliver, you agree to all of the GSO service terms&conditions Including, but not limited to; limits of liability, declared value conditions, and claim procedures which are available on our webslte at www.gso.com. https://app.gso.com/Shipping/ShippingLabel 4/29/2019 Tmck Shipment Result Details Page 1 of 1 CrS41 I (.z2GLS SteN FRI. Contact OF 500.322.3555 YAS p1MyFNNl M I My Poe le Sh"t, Trecklna Mppal T.1, Iatdw LMOut ShlpmeNlt Tnddrig Illfmvinuden p� LG Tncklnp Mumeen 54Eu5M shipped Fr^m $p pDplrp Campnny: ORANGE COUNTY SANRATION DBIRILT Company: OOCENGINEERING&TECMNOLOG Addrro: 101i ELUS AVE Addmaa: 975 WALNUT RIDGE DRIVE FOUNTAIN VALLEY,G 92TIS AGOURA HILLS,G 91301 Sent Ny: 'Al PMONGNEKMIN Attention: OVED DAGAN Ship DaN ^rsll 04-39-2019 Si P05 Reference: Fli Oarincetbn Net Del Po[at 05-01.3019 Weight Obal: 0 sIB^atme Tygl Mu¢Sl9nean Rpmna Tn Del m I0:17 AM Co.Value: 0 Spcl eallnatruNpnc Blamed Wn O.De9en Dec.Value: 0 View Sign Imepe II Tranelt Daml. I DAb/V. MPa � —.___— ..._ .._.._.._PM A MI_.. . .............. ._._..._... . __ ._,._. __...,_.__.. II pe-i9-3019 6:50 ARRIVAL SCAM SCXEDW FM 01/30/3019 05-01-2019I=AM DEL RESCMED-FROM OV3O/ZM9 TO O5/OI/2019 D541-20197:20AM ON ROUTE FOR DELIVERY 05-01301910:17 AN SMIPMEMDELFYINEO _._____..._._—__._._._______.............. ...._.................. _._............... ...._...____..__.....__.. —..--_—_.............._..._.....___.........._......................................____'__._—.__.__._.__..._...�._ 01995.20190N0en Sbb OYamgbe Dallwry"naca Inc. SUbacNEe Privacy PWIcy, Terms ache Shia map https://app.gso.com/'Fracking/TrackShipment 5/1/1019 From: Oved Daaan TO: Construdion Subject EXTERNAL FE17-05 Clarlficatlon#2.pdf Dale: Sunday,May 5,201911:13:29 PM Attachments: FE1J-OStlar'fication#2 odf Warning:This email originated from outside OCSD.Do not click links or open attachments unless you recognize the sender and are expecting the message. FE17-05 Clarification #2.pdf This email has been checked for vimses by AVG. h1ws://w .ayg.com ODC ENGINEERING & TECHNOLOGY 5675 Walnut Ridge Drive Agoura Hills CA. 91301 Phone 818-707-3405 " Fax 818-889-7585 May 6th,2019 OCSD Brandon Garcia Contracts Administrator Subject: Clarification Request No. 2 Re: Project No. FE17-05 I have looked closely to the District concern I have looked through the project scope of work and I found that my firm is qualified to perform this project. 1. The document that I submitted me correct, meaning there is no missed representation,#4 Elementary school it was F.O. Cat 5 and Cat 6 we did not mentioned PLC same about Normont Elementary School. And other 17 schools of safety and Technology that F.O. Cat 5 Some Cat 6 and MDFs was involved and they are similar to some PLC. 2. On P2-105 Project we built PLC and RIO. 3. The request of 3 project for Modification of Programmable Logic Controller is not applicable since there is no really existence of study to show 3 project experiences is better than one project's experience, especially when my firm built one. 4. The scope of work does show that there is any programing that will be done by the contractor. programing will be done by OCDS or third part that would be hired by the District. 5. RIO is like PLC and we build one on P2-105 Project. 5. In#4 school we had MDF that it is like what requested. 6. The requirement is asking"at least"and not must, it interpret as you can be qualified with one or even none since the programing is not in the scope of work. 7. When the qualification is not part of the scope of work is like to determine that bidder that had 3 projects is better than bidder that had one or two. After all it is Public Work Thank You Overt Dagan serving: Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 Brea .o 714.962.2411 • wwwcsd.com Buena park May 17, 2019 Via Email: oveddacan(agmail.com Cypress & Overnight Mail Fountain Val, Oved Cagan Fuue. ODC Engineering and Technology 5675 Walnut Ridge Drive Garden G Augora Hills CA, 91301 Huntington 8 - SUBJECT: Award Recommendation Notice Irvi Re: Project No. FE17-05, Plant 1 ICS Network Extension La Habra The Orange County Sanitation District (OCSD) is in receipt of your letter dated La Palma May 6, 2019, and has completed its evaluation of your firm's Bid submitted in Los Alamitos response to the Invitation for Bids (IFB) for the above-referenced Project. Newport Beach After evaluating your firm's Bid and related clarification responses, OCSD has determined that ODC Engineering and Technology's (ODC)'s Bid is Orange Non-Responsive to the IFB based on the following: Placentia The Bid fails to provide the information required under Part 5, BID SUBMITTAL Santa Ana FORMS, BF-4— PERFORMANCE HISTORY AND FINANCIAL RESOURCES, Section A. That section reads as follows: Seal Bea "A. LIST OF CURRENT AND COMPLETED PROJECTS AND Stanton EXPERIENCE REQUIREMENTS Tustin Using the table in this section, the Bidder shall provide a list of projects Villa Park to demonstrate that it has the experience described below. Projects listed are not required to demonstrate all elements individually, but County of Orange collectively the projects listed shall demonstrate all elements. Costa Mesa Sanitary District 1. Bidder shall list at least three (3) projects completed within the past ten (10) years involving installation of conduit, Cal cable and 120 Midway City VAC power which are similar in nature, scope, complexity, and cost Sanitary District to this IFB. Irvine Ranch Water District 2. Bidder shall list at least three (3) projects completed within the past ten (10) years involving construction installation or modification of Yorba Linda Programmable Logic Controller(PLC) cabinets which are similar in Water District nature, scope, complexity, and cost to this IFB. Bidder must submit this item with its Bid. Attach documents directly ,s behind this page and/or fill in the provided pages. Revision 110218 Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. xSV SANI, 1 - o b2 Off? 77 E Oved Dagan Page 2 of 3 May 17, 2019 For each listed project, include: the project name and location; role as prime contractor or subcontractor; description of work; owner's name, address, phone number of project manager or project engineer; final contract value; and, completion date. Bidder shall ensure the contact names and numbers are current at the time of Bid. If the contacts are no longer employed with the owner, Bidder shall identify at least one contact familiar with the project and Bidder's work thereon. In addition to contacting the references included herein, OCSD may, and retains its right to contact other project owners and such other entities for which Bidder has performed or is performing work." Your firm listed a total of four(4) completed projects on the BF-4. Please note that the fourth project entitled "OCSD Plant 1" was completed outside the number of years required per BF-4, and therefore it was removed from consideration. OCSD has previously informed ODC that only one (1) of the three (3) projects listed in the BF-4 met the requirement for PLC experience under BF-4, Section A.2. On April 29, 2019, OCSD issued a letter titled "Clarification Request No. 2"to your firm requesting that ODC provide information that clearly demonstrates that your firm's Bid meets the requirements of BF-4, Section A.2. That letter stated that failure to provide this information will render ODC's Bid non-responsive. On May 6, 2019, OCSD received ODC's response. OCSD has reviewed the response and has determined that it does not provide any of the information requested in the Clarification Request No. 2 and required by BF-4, Section A.2. Please note that the Bidder must meet both items "I" and "2" of BF-4, Section A. This includes at least three (3) completed projects within the past ten (10) years involving construction, installation, or modification of Programmable Logic Controller (PLC) cabinets which are similar in nature, scope, complexity, and cost to the FE17-05 IFB. In conclusion, ODC has failed to provide the information required under Section A of the BF-4 and specifically requested in OCSD's letter dated April 29, 2019. Therefore, OCSD finds ODC Engineering and Technology's Bid non-responsive to the requirements of the IFB and will proceed with staff's recommendations to the OCSD's Board of Directors as follows: 1. Reject the Bid of CDC Engineering and Technology as Non-Responsive. Revision 11021 B JHVV 5 N4q /o W O W� T C/NC THE EM Oved Dagan Page 3 of 3 May 17, 2019 2. Award the Contract to RP Controls, the lowest responsive and responsible Bidder. The recommendations will first be presented to the OCSD Operations Committee for Contract award. The Operations Committee meeting is scheduled for: Date: June 5, 2019 Time: 5:00 p.m. Location: Orange County Sanitation District Board Room, Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 If approved by the Operation Committee, the recommendations will be forwarded to the OCSD Board of Directors for Contract award. The Board of Directors Meeting is scheduled for: Date: June 26, 2019 Time: 6:00 P.M. Location: Orange County Sanitation District Board Room, Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 The final Agenda Report will be posted not less than seventy-two (72) hours prior to the Board of Directors Meeting. Should you wish to determine if the item has been placed on the agenda, please contact the Clerk of the Board at (714) 593- 7433. randon Garcia Contracts Administrator BG:yp cc: K. Millea S. Harris K. Lore J. Mohr D. Cutler N. Dubrovski Revislon 110218 From: Construction Sent: Friday, May 17,2019 10:52 AM To: 'oveddagan@gmaii.com' Subject: FE17-05 Award Recommendation Notice- ODC Engineering Attachments: FE17-05 Award Recommendation Notice- CDC Engineering.pdf Mr. Dagan, Attached is the Award Recommendation Notice of Project FE17-05, Plant 1 ICS Network Extension.The letter was overnight mailed to your attention today. Orange County sanitation District Contracts, Purchasing&Material Management Division vmw.ouo.com 1 From: Microsoft Outlook To: oveddagan@gmail.com Sent: Friday, May 17, 2019 10:52 AM Subject: Relayed: FE17-05 Award Recommendation Notice - ODC Engineering Delivery to these recipients or groups is complete, but no delivery notification was sent by the destination server: oveddaaan0amail.com (oveddagan(Womail.com) Subject: FE17-05 Award Recommendation Notice-ODC Engineering 1 Page 1 of 1 80 (4mXGLS www.g o co5m :Ship From .........__... Traek...9.#.�..�_......._....._...._.. Tracking 544838886 PDS ORANGE COUNTY SANITATION DISTRICT ;YAI EKHIN III IIII II II II II II II III I I III 130894 ELLIS ELLIS AVE !FOUNTAIN VALLEY, CA 92708 Ship To ODC ENGINEERING !TECHNOLOGY '.OVED DAGAN AGOURA HILLS 5675 WALNUT RIDGE DRIVE AGOURA HILLS,CA 91301 S91301 A COD: $0.00 Weight: 0 lb(s) Reference: YAI/ FE17-05 NOTICE Delivery Instructions: Signature Type: ADULT 2867961 BUR CA913-D 0 Pint Oats:5/16/3a1g 32! LABEL INSTRUCTIONS: Do not copy or reprint this label for additional shipments-each package must have a unique bartode. Step 1: Use the"Print Label"button on this page to print the shipping label on a laser or Inklet printer. Step 2: Fold this page In half. Step 3: Securely attach this label to your package and do not cover the barcode. TERMS AND CONDITIONS: By giving us your shipment to deliver, you agree to all of the GSO service terms a conditions Including, but not limited to; limits of liability, declared value conditions, and claim procedures which are available on our webslte at www.gso.com. https://app.gao.com/Shipping/ShippingLabel 5/16/2019 Track Shipment Result Details Page 1 of 1 SUrt Page Contact us 800.322.5555 YArpMONOMINMIN I MY Profile Shipping Tracking Repartinr Tools Seconds Leg Out Shipment Tracking Information Tracking Number: SIABISMS6 Sir ooe6 From bS i�pe2s Company: ORANGE COUNTY SANITATION DISTRICT Company: NBC ENGINEERING 6 TECHNOLOGY Address: Ii E WS AVE Address: 5675 WALNUT RIDGE OR VE FOUNTAIN VALLEY CA 92708 AGOURA HILLS,CA 91301 Sent By: YAI PHONGMENHIN Attention: OVEO CAGAN Ina mmtM Sid,DON: 05-12-2019 Service: IDS Reference: Yai/FE32-05 NMICe Del Date: 05-20-2019 Weight(lbs): 0 Signature Type: Adult Signature Rrunned Del Time: 1021 AM COD Value: 0 Special Instructions: Signed BY: D.Oved Dec Value: 0 V ieo I"'Image Transit Details DMo,Tlme Nose 05-17-20196:36 PM ARRilSl-DELLVERY SCHED FOR 05/20/2019 O1-20-2019 6:57 AM ON ROUTE FOR OEINE0.Y 05 20 2019 10:21 AM SHIPMENT DELIVERED BA� 01995-2019 Golden 5ta40vem1gbt Delivery Service Inc. Subscribe Prlvacy Polity TnmS of Use Site Map https://app.gso.com/Tracking/TrackShipment 5/20/2019 Serving: Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 714.962.2411 • www.ocsd.com Brea Buena Park May 17, 2019 Via Email: roimentel(cDrocontrolsencineer com Cypress & Overnight Mail Fountain Valley Richard J. Pimentel Fullerton RP Controls 1895 West Commonwealth Avenue, Garden Grove Suite D Huntington Beach Fullerton CA, 92833 Irvine SUBJECT: Award Recommendation Notice Re: Project No. FE17-05, Plant 1 ICS Network Extension La Habra La Palma The Orange County Sanitation District (OCSD) completed its evaluation of the Bids Los Alamitos submitted in response to the Invitation for Bids (IFB) for the above referenced Project. The lowest responsive, responsible Bidder is RP Controls. The Evaluation Newport Beach Team is recommending RP Controls for Contract award. Orange The recommendation for Contract award will be included as an item on OCSD's Placentia Operations Committee agenda. Santa Ana The Operations Committee Meeting is scheduled for: Seal Beach Date: June 5, 2019 Time: 5:00 p.m. Stanton Location: Orange County Sanitation District Board Room, Administration Building Tustin 10844 Ellis Avenue Villa Park Fountain Valley, CA 92708 County of orange If approved by the Operations Committee, the award recommendation will be forwarded to OCSD's Board of Directors for Contract award. Costa Mesa Sanitary District The Board of Directors Meeting is scheduled for: Midway city Date: June 26, 2019 Sanitary District Time: 6:00 p.m. Irvine Ranch Location: Orange County Sanitation District Water District Board Room, Administration Building vorba Linda 10844 Ellis Avenue Water District Fountain Valley, CA 92708 Revision 110218 Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. 53 �e o � 'HE EPH`P�� P Richard J. Pimentel Page 2 May 17, 2019 The final Agenda Report will be posted not less than seventy-two (72) hours prior to the Board of Directors and Operations Committee Meetings. Should you wish to determine if the item has been placed on the agenda, please contact the Clerk of the Board at (714) 593-7433. randon Garcia Contracts Administrator BG:yp cc: K. Miles S. Harris K. Lore J. Mohr D. Cutler N. Dubrovski Revision 110218 From: Construction Sent: Friday, May 17,2019 10:52 AM To: 'rpimentel@rpcontrolsengineer.com' Subject: FE17-05 Award Recommendation Notice- RP Controls Attachments: FE17-05 Award Recommendation Notice- RP Controls.pdf Mr. Pimentel, Attached is the Award Recommendation Notice of Project FE17-05, Plant 1 ICS Network Extension.The letter was overnight mailed to your attention today. 16 Orange County Sanitation District Contracts, Purchasing&Material Management Division wanv.ocsd.com 1 From: Microsoft Outlook To: rpimentel@rpcontrolsengineer.com Sent: Friday, May 17,2019 10:52 AM Subject: Relayed: FE17-05 Award Recommendation Notice- RP Controls Delivery to these recipients or groups is complete, but no delivery notification was sent by the destination server: rpimentelCahocontrolsenaineer.com (roimentelCalmcontrolsenaineer.mmt Subject: FE17-05 Award Recommendation Notice - RP Controls I Page I of 1 GSII C.�/GLS ww�w.g o cosm Ship From Tracking#: 544838783 PDS '.ORANGE COUNTY SANITATION DISTRICT YAl PLUS EKHIN 1044 ELLIS III II IIII II II II IIIII II II IIII i 108 AVE ;FOUNTAIN VALLEY, CA 92708 Ship To RP CONTROLS RICHARD I. PIMENTEL FULLERTON 1895 W COMMONWEALTH AVE SUITE D FULLERTON, CA 92833 S92832A COD: $0.00 Weight: 0 lb(s) !Reference: YAI/FE17-05 AWARD RECOMMENDATION !Delivery Instructions: Signature Type:ADULT 2867532 NWK CA906-0 0 PrfM DNr:5/WM19 3:35 PM LABEL INSTRUCTIONS: Do not copy or reprint this label for additional shipments-each package must have a unique barcode. Step 1: Use the"Print Label"button on this page to print the shipping label on a laser or Inklet printer. Step 2: Fold this page in half. Step 3: Securely attach this label to your package and do not cover the barcode. TERMS AND CONDITIONS: By giving us your shipment to deliver, you agree to all of the GSO service temrs&conditions Including, but not limited to; limits of liability,declared value conditions, and claim procedures which are available on our website at www.gso.com. https://app.gm.com/SMpping/ShippingLabel 5/16/2019 Serving. Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 714.962.2411 • www.ocsd.com Brea Buena Pa May 17, 2019 Via Email: brentm(cDherzoaelectric.com Cypress & Overnight Mail Fountain Valley Kevin Ryan Fullerton M.B. Herzog Electric, Inc. 15709 Illinois Avenue Garden Grove Paramount, CA, 90723 Huntington Beal SUBJECT: Award Recommendation Notice wine-. Re: Project No. FE17-05, Plant 1 ICS Network Extension La Habra The Orange County Sanitation District(OCSD) completed its evaluation of the Bids La Palma submitted in response to the Invitation for Bids (IFB)for the above referenced Los Alamitos Project. The lowest responsive, responsible Bidder is RP Controls. The Evaluation Team is recommending RP Controls for Contract award. Newport Beach The recommendation for Contract award will be included as an item on OCSD's Orange Operations Committee agenda. Placentia The Operations Committee Meeting is scheduled for: Santa Ana Date: June 5, 2019 Seal Beach Time: 5:00 p.m. Location: Orange County Sanitation District Stan Board Room, Administration Building 10844 Ellis Avenue Tustin Fountain Valley, CA 92708 Villa Park If approved by the Operations Committee, the award recommendation will be County of orange forwarded to OCSD's Board of Directors for Contract award. Costa Mesa The Board of Directors Meeting is scheduled for: Sanitary District Midway City Date: June 26, 2019 Sanitary District Time: 6:00 p.m. Location: Orange County Sanitation District Irvine Ranch Board Room, Administration Building Water District 10844 Ellis Avenue votes Linda Fountain Valley, CA 92708 Water District Revision 110218 ,.,...... Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. A 7 N a u fp ? NO HE V\ Kevin Ryan Page 2 May 17, 2019 The final Agenda Report will be posted not less than seventy-two (72) hours prior to the Board of Directors and Operations Committee Meetings. Should you wish to determine if the item has been placed on the agenda, please contact the Clerk of the Board at (714) 593-7433. Fz�.¢ Brandon Garcia Contracts Administrator BG:yp cc: K. Millea S. Harris K. Lore J. Mohr D. Cutler N. Dubrovski Revision 110218 From: Construction Sent: Friday, May 17, 2019 10:52 AM To: 'brentm@herzogelectric.com' Subject: FE17-05 Award Recommendation Notice- M.B. Herzog Electric Attachments: FE17-05 Award Recommendation Notice- Herzog Electric.pdf Mr. Ryan, Attached Is the Award Recommendation Notice of Project FE17-05, Plant 1 ICS Network Extension.The letter was overnight mailed to your attention today. Orange County Sanitation District Contracts, Purchasing&Material Management Division w.awocsd.com 1 From: Microsoft Outlook To: brentm@herzogelectric.com Sent: Friday,May 17,2019 10:52 AM Subject: Relayed:FE17-05 Award Recommendation Notice- M.B. Herzog Electric Delivery to these recipients or groups is complete, but no delivery notification was sent by the destination server: brentm(aherzoaelectric.com fbrentm(fterzooelectric com) Subject: FE17-05 Award Recommendation Notice -M.B. Herzog Electric t Page 1 of 1 00-322-5555 G,S,1 ( ICI S ww.gso.com I\ www.gso.com Ship From Tracking #: 544838851 PDS ORANGE COUNTY SANITATION DISTRICT YAI PHONGMEKHIN FOUNTAIN VALLEY, CA 92708 III IIIIIIIIIIIIIIIIIIIIIII III Ship To M.B. HERZOG ELECTRIC INC KEVIN RYA N PARAMOUNT 15709 ILLINOIS AVENUE PARAMOUNT,CA 90723 S90723A COD: $0.00 Weight: 0 lb(s) Reference: YAI/ FE17-05 AWARD RECOMMENDATION Delivery Instructions: Signature Type:ADULT 2867827 NWK CA906-J 0 Print Date:5/16/2019 3:37 PM LABEL INSTRUCTIONS: Do not copy or reprint this label for additional shipments-each package must have a unique barcode. Step 1: Use the"Print Label"button on this page to print the shipping label on a laser or inkjet printer. Step 2: Fold this page in half. Step 3: Securely attach this label to your package and do not cover the barcode. TERMS AND CONDITIONS: By giving us your shipment to deliver, you agree to all of the GSO service terms &conditions Including, but not limited to; limits of liability, declared value conditions, and claim procedures which are available on our website at www.gso.com. https://app.gso.com/Shipping/ShippingLabel 5/16/2019 Track Shipment Result Details Page 1 of 1 GSOI 7,GLS soft v.a. CmttaR IN BOD.3223555 YM PMOMOMR I My FROM. Shipping h+Mm9 R.POnm! TWIa Sytums .10.1 Shipment Tracking Information Tracking Number;Sa093e951 Somme From WpyG,rp Capany:m ORANGE COUNTY SANTIATIOM DISTRICT Ca mw M.B.HER20G ELECTRIC INC AOOnen 101144 EWS AVE Addr : MAH)IWNOIS AVENUE FOUNTAIN VAIlIY,CA92JOB PARAMOUNT,CA 90733 Sent By: YAI PXONGMINMIN AMW..: KEVIN RYAN Shipment netella Ship Oat*: 05-I1-2019 SIR POS IMI.NMe: Val/FESJ-OS AwaM Return Del oath 0-21-2019 wa9ML pB.N 0 BI9BBtUre Typal AOUN Sho a me Required Del"me: 1012BAM COO V.IW: 0 Spena 2nebualenn Blpned W: III~ DW Valpel D View spn ImOe TlNalbDe� DRIA/Time IAFG d)-M196:9)HIM ARRIVAL SCAN-DELIVERY SCXID Ppl05/N1/2019 -19-20197: 0AM DEL RESCMIO-110 DEL ATTEMPT-FROM 05/20/2019 T00WW2019 -18-2019 MISS AM ON ROUTE MR DELIVERY 19-20199:13 AM DEL ATTEMPTED-BUSINESS CLOSED-DX9 LOB)53)51 Y18-210199:17,01 DEL ATTEMPT NOTIFICATION SENT-PH*105753751 I8-20191:5B PM DEL RISCXED-BUSINESS CLOSED-FROM OWISS2019 T005/20/2019 5.203019919E PM DEL RESCHED-SECURITY GAR-FROM OS/10/2019 T005/21/2019 5-21-2019 J:IJ AM ON ROUTE FOR DELIVERY 5-21-201910:28 AM 01995-2019 WM State OVmwm DMNaryS l.1 . Su910Oe FXVa,Realty Terms a USE SIM Map https://app.gso.com/Tracking/TrackShipment 5/22/2019 PART A CONTRACT AGREEMENT C-CA-112818 TABLE OF CONTENTS CONTRACT AGREEMENT SECTION - 1 GENERAL CONDITIONS..................................................................1 SECTION -2 MATERIALS AND LABOR.................................................................4 SECTION -3 PROJECT..........................................................................................4 SECTION -4 PLANS AND SPECIFICATONS ........................................................5 SECTION -5 TIME OF COMMENCEMENT AND COMPLETION ..........................5 SECTION -6 TIME IS OF THE ESSENCE .............................................................5 SECTION -7 EXCUSABLE DELAYS......................................................................6 SECTION -8 EXTRA WORK...................................................................................6 SECTION -9 CHANGES IN PROJECT...................................................................7 SECTION - 10 LIQUIDATED DAMAGES FOR DELAY.............................................7 SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................7 SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS ..............................................................................................9 SECTION - 13 COMPLETION...................................................................................9 SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION.......................10 SECTION - 15 SURETY BONDS ............................................................................12 SECTION - 16 INSURANCE....................................................................................13 SECTION - 17 RISK AND INDEMNIFICATION.......................................................22 SECTION - 18 TERMINATION................................................................................22 SECTION - 19 WARRANTY....................................................................................22 SECTION -20 ASSIGNMENT.................................................................................23 SECTION -21 RESOLUTION OF DISPUTES ........................................................23 SECTION -22 SAFETY& HEALTH ........................................................................24 SECTION -23 NOTICES.........................................................................................24 C-CA-112818 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION THIS AGREEMENT is made and entered into, to be effective, this June 26, 2019, by and between RP Controls, hereinafter referred to as "CONTRACTOR" and the Orange County Sanitation District, hereinafter referred to as "OCSD". WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OCSD and CONTRACTOR agree as follows: SECTION-1 GENERAL CONDITIONS CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of OCSD. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions—Definitions. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 1 of 25 1. In the event of a conflict between one Contract Document and any of the other Contract Documents, the provisions in the document highest in precedence shall be controlling. The order of precedence of the Contract Documents is as follows: a. Supplemental Agreements—the last in time being the first in precedence b. Addenda issued prior to opening of Bids—the last in time being the first in precedence c. Contract Agreement d. Permits and other regulatory requirements e. Special Provisions f. General Conditions (GC) g. Notice Inviting Bids and Instruction to Bidders h. Geotechnical Baseline Report (GBR), if attached as a Contract Document I. Plans and Specifications—in these documents the order of precedence shall be: i. Specifications (Divisions 01-17) ii. Plans H. General Requirements (GR) iv. Standard Drawings and Typical Details j. CONTRACTOR's Bid 2. In the event of a conflict between terms within an individual Contract Document, the conflict shall be resolved by applying the following principles as appears applicable: a. Figured dimensions on the Contract Documents shall govern. Dimensions not specified shall be as directed by the ENGINEER. Details not shown or specified shall be the same as similar parts that are shown or specified, or as directed. Full-size details shall take precedence over scale Drawings as to C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 2 of 25 shape and details of construction. Specifications shall govern as to material and workmanship. b. The Contract Documents calling for the higher quality material or workmanship shall prevail. Materials or Work described in words, which so applied, have a well known technical or trade meaning shall be deemed to refer to such recognized standards. In the event of any discrepancy between any Drawings and the figures thereon, the figures shall be taken as correct. C. Scale Drawings, full-size details, and Specifications are intended to be fully complementary and to agree. Should any discrepancy between Contract Documents come to the CONTRACTOR's attention, or should an error occur in the efforts of others, which affect the Work, the CONTRACTOR shall notify the ENGINEER, in writing, at once. In the event any doubts or questions arise with respect to the true meaning of the Contract Documents, reference shall be made to the ENGINEER whose written decision shall be final. If the CONTRACTOR proceeds with the Work affected without written instructions from the ENGINEER, the CONTRACTOR shall be fully responsible for any resultant damage or defect. d. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to OCSD's ENGINEER, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the ENGINEER shall be final. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 3 of 25 In all matters relating to the acceptability of material, machinery or plant equipment; classifications of material or Work; the proper execution, progress or sequence of the Work; and quantities interpretation of the Contract Documents, the decision of the ENGINEER shall be final and binding, and shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board of Directors. B. Definitions Capitalized terms used in this Contract are defined in the General Conditions, Definitions. Additional terms may be defined in the Special Provisions. SECTION—2 MATERIALS AND LABOR CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by OCSD, to construct and complete the Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OCSD may settle such claims by making demand upon the Surety to this Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees. SECTION-3 PROJECT The Project is described as: PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 4 of 25 SECTION -4 PLANS AND SPECIFICATONS The Work to be done is shown in a set of Plans and Specifications entitled: PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION Said Plans and Specifications and any revision, amendments and addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. SECTION—5 TIME OF COMMENCEMENT AND COMPLETION CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth in the "Notice to Proceed"sent by OCSD, unless otherwise specified therein and shall diligently prosecute the Work to completion within two hundred seventy (270) calendar days from the date of the "Notice to Proceed" issued by OCSD, excluding delays caused or authorized by OCSD as set forth in Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions. The time for completion includes five (5) calendar days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. SECTION—6 TIME IS OF THE ESSENCE Time is of the essence of this Contract. As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the Work covered by this Contract with that of all other contractors, subcontractors and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with Section 5 herein. OCSD shall have the right to assert complete control of the premises on which the Work is to be performed and shall have the right to decide the time or order in which the various portions of the Work shall be installed or the priority of the work of subcontractors, C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 5 of 25 and, in general, all matters representing the timely and orderly conduct of the Work of CONTRACTOR on the premises. SECTION—7 EXCUSABLE DELAYS CONTRACTOR shall only be excused for any delay in the prosecution or completion of the Project as specifically provided in General Conditions, "Extensions for Delay", and the General Requirements, "By CONTRACTOR or Others—Unknown Utilities during Contract Work". Extensions of time and extra compensation arising from such excusable delays will be determined in accordance with the General Conditions, "Extension of Time for Delay" and "Contract Price Adjustments and Payments", and extensions of time and extra compensation as a result of incurring undisclosed utilities will be determined in accordance with General Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work". OCSD's decision will be conclusive on all parties to this Contract. SECTION—S EXTRA WORK The Contract Price as set forth in Section 11, includes compensation for all Work performed by CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated representative of OCSD specifying the exact nature of the Extra Work and the amount of extra compensation to be paid all as more particularly set forth in Section 9 hereof and the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated Changes", and "Contract Price Adjustments and Payments". In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD shall extend the time fixed in Section 5 for completion of the Project by the number of days, if any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by OCSD's ENGINEER. The decision of the ENGINEER shall be final. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 6 of 25 SECTION-9 CHANGES IN PROJECT OCSD may at any time, without notice to any Surety, by Change Order, make any changes in the Work within the general scope of the Contract Document, including but not limited to changes: 1. In the Specifications (including Drawings and designs); 2. In the time, method or manner of performance of the Work; 3. In OCSD-furnished facilities, equipment, materials, services or site; or 4. Directing acceleration in the performance of the Work. No change of period of performance or Contract Price, or any other change in the Contract Documents, shall be binding until the Contract is modified by a fully executed Change Order. All Change Orders shall be issued in accordance with the requirements set forth in the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and "OWNER Initiated Changes'. SECTION-10 LIQUIDATED DAMAGES FOR DELAY Liquidated Damages shall be payable in the amounts and upon the occurrence of such events or failure to meet such requirements or deadlines as provided in the Special Provisions, "Liquidated Damages and Incentives." SECTION—11 CONTRACT PRICE AND METHOD OF PAYMENT A. OCSD agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in approved Change Orders, the sum of Three Hundred Twenty-One Thousand Eight Hundred Eighty Nine Dollars ($321,889)as itemized on the Attached Exhibit"A". Upon satisfaction of the conditions precedent to payment set forth in the General Requirements, Additional General Requirements and General Conditions (including but C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 7 of 25 not limited to Sections entitled "Mobilization Payment Requirements" and "Payment Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the commencement of the job a schedule which shows: 1. A minimum of one payment to be made to the CONTRACTOR for each successive four(4)week period as the Work progresses, and 2. The due dates for the CONTRACTOR to submit requests for payment to meet the payment schedule. After the initial Net Progress Payment, and provided the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule, the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly payment date set forth in the schedule. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the ENGINEER, stating that the Work for which payment is demanded has been performed in accordance with the terms of the Contract Documents, and that the amount stated in the certificate is due under the terms of the Contract. Payment applications shall also be accompanied with all documentation, records, and releases as required by the Contract, Exhibit A, Schedule of Prices, and General Conditions, "Payment for Work—General". The Total amount of Progress Payments shall not exceed the actual value of the Work completed as certified by OCSD's ENGINEER. The processing of payments shall not be considered as an acceptance of any part of the Work. B. As used in this Section, the following defined terms shall have the following meanings: C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 8 of 25 1. "Net Progress Payment" means a sum equal to the Progress Payment less the Retention Amount and other qualified deductions (Liquidated Damages, stop payment notices, etc.). 2. "Progress Payment" means a sum equal to: a. the value of the actual Work completed since the commencement of the Work as determined by OCSD; b. plus the value of material suitably stored at the worksite, treatment plant or approved storage yards subject to or under the control of OCSD since the commencement of the Work as determined by OCSD; C. less all previous Net Progress Payments; d. less all amounts of previously qualified deductions; e. less all amounts previously retained as Retention Amounts. 3. "Retention Amount"for each Progress Payment means the percentage of each Progress Payment to be retained by OCSD to assure satisfactory completion of the Contract. The amount to be retained from each Progress Payment shall be determined as provided in the General Conditions—"Retained Funds; Substitution of Securities." SECTION—12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS Pursuant to Public Contract Code Section 22300 at seq., the CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." SECTION—13 COMPLETION Final Completion and Final Acceptance shall occur at the time and in the manner specified in the General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A- Schedule of Prices. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 9 of 25 Upon receipt of all documentation, records, and releases as required by the Contract from the CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General Conditions. SECTION—14 CONTRACTOR'S EMPLOYEES COMPENSATION A. Davis-Bacon Act: CONTRACTOR will pay and will require all Subcontractors to pay all employees on said Project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. B. General Prevailing Rate: OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime Work in the locality in which the Work is to be performed for each craft or type of Work needed to execute this Contract, and copies of the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR agrees that not less than said prevailing rates shall be paid to workers employed on this public works Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each job site, which shall be made available to any interested party upon request. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 10 of 25 C. Forfeiture for Violation: CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00)for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any Subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the Work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. D. Apprentices: Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the CONTRACTOR shall comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00) or more. E. Workday: In the performance of this Contract, not more than eight(8) hours shall constitute a day's work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (B) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at sea.)of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by CONTRACTOR or any Subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article. CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 11 of 25 F. Registration: Record of Wages: Inspection: CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(a). SECTION-15 SURETYBONDS CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds approved by OCSD's General Counsel—one in the amount of one hundred percent(100%)of the Contract amount, to guarantee the faithful performance of the Work, and the other in the amount of one hundred percent (100%)of the Contract amount to guarantee payment of all claims for labor and materials furnished. As changes to the Contract occur via approved Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds are supplied to and approved by OCSD. Bonds must be issued by a Surety authorized by the State Insurance Commissioner to do business in California. The Performance Bond shall remain in full force and effect through the warranty period, as specified in Section 19 below. All Bonds required to be submitted relating to this Contract must comply with California Code of Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety insurer under penalty of perjury, or the fact of execution of each Bond shall be duly acknowledged before an officer authorized to take and certify acknowledgments, and either one of the following conditions shall be satisfied: C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 12 of 25 A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by- laws, or other instrument, duly certified by the proper authority and attested by the seal of the insurer entitling or authorizing the person who executed the Bond to do so for and on behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or B. A copy of a valid power of attorney is attached to the Bond. SECTION— 16 INSURANCE CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against claims for injuries to persons, or damages to property which may arise from or in connection with the performance of the Work hereunder, and the results of that Work by CONTRACTOR, its agents, representatives, employees, or Subcontractors, in amounts equal to the requirements set forth below. CONTRACTOR shall not commence Work under this Contract until all insurance required under this Section is obtained in a form acceptable to OCSD, nor shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all of the foregoing insurance coverages in force through the point at which the Work under this Contract is fully completed and accepted by OCSD pursuant to the provisions of the General Conditions, "Final Acceptance and Final Completion'. Furthermore, CONTRACTOR shall maintain all of the foregoing insurance coverages in full force and effect throughout the warranty period, commencing on the date of Final Acceptance. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of OCSD by CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, inclusive of all changes to the Contract Documents made in accordance with the provisions of the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)"and/or"OWNER Initiated C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 13 of 25 Changes", the following insurance in amounts not less than the amounts specified. OCSD reserves the right to amend the required limits of insurance commensurate with the CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter OCSD premises/worksite without possessing the required insurance coverage. CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by agencies from whom permits shall be obtained for the Work and any other third parties from whom third party agreements are necessary to perform the Work (collectively, the "Third Parties"), The Special Provisions may list such requirements and sample forms and requirements from such Third Parties may be included in an attachment to the General Requirements. CONTRACTOR bears the responsibility to discover and comply with all requirements of Third Parties, including meeting specific insurance requirements, that are necessary for the complete performance of the Work. To the extent there is a conflict between the Third Parties' insurance requirements and those set forth by OCSD herein, the requirement(s) providing the more protective coverage for both OSCD and the Third Parties shall control and be purchased and maintained by CONTRACTOR. A. Limits of Insurance 1. General Liability: Five Million Dollars ($5,000,000) per occurrence and a general aggregate limit of Five Million Dollars ($5,000,000)for bodily injury, personal injury and property damage. Coverage shall include each of the following: a. Premises-Operations. b. Products and Completed Operations, with limits of at least Five Million Dollars ($5,000,000) per occurrence and a general aggregate limit of Five Million Dollars ($5,000,000)which shall be in effect at all times during the warranty period set forth in the Warranty section herein, and as set forth in the General Conditions, "Warranty(CONTRACTOR's Guarantee)", plus any additional C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 14 of 25 extension or continuation of time to said warranty period that may be required or authorized by said provisions. C. Broad Form Property Damage, expressly including damage arising out of explosion, collapse, or underground damage. d. Contractual Liability, expressly including the indemnity provisions assumed under this Contract. e. Separation of Insured Clause, providing that coverage applies separately to each insured, except with respect to the limits of liability. f. Independent CONTRACTOR's Liability. To the extent first dollar coverage, including defense of any claim, is not available to OCSD or any other additional insured because of any SIR, deductible, or any other form of self insurance, CONTRACTOR is obligated to assume responsibility of insurer until the deductible, SIR or other condition of insurer assuming its defense and/or indemnity has been satisfied. CONTRACTOR shall be responsible to pay any deductible or SIR. g. If a crane will be used, the General Liability insurance will be endorsed to add Riggers Liability coverage or its equivalent to cover the usage of the crane and exposures with regard to the crane operators, riggers and others involved in using the crane. h. If divers will be used, the General Liability insurance will be endorsed to cover marine liability or its equivalent to cover the usage of divers. 2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 15 of 25 Either(1)a combined single limit of Five Million Dollars ($5,000,000) and a general aggregate limit of Five Million Dollars ($5,000,000)for bodily injury, personal injury and property damage; Or alternatively, (2) Five Million Dollars ($5,000,000) per person for bodily injury and Five Million Dollars ($5,000,000) per accident for property damage. 3. Umbrella Excess Liability: The minimum limits of general liability and automobile liability insurance required, as set forth above, shall be provided for either in a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automobile liability. 4. Drone Liability Insurance: If a drone will be used, drone liability insurance must be maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a form acceptable by OCSD. 5. Worker's Compensation/Employer's Liability: CONTRACTOR shall provide such Worker's Compensation Insurance as required by the Labor Code of the State of California, including employer's liability with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage with regard to Jones Act claims. Where permitted by law, CONTRACTOR hereby waives all rights of recovery by subrogation because of deductible clauses, inadequacy of limits of any insurance policy, limitations or exclusions of coverage, or any other reason against OCSD, its or their officers, agents, or employees, and any other contractor or subcontractor C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 16 of 25 performing Work or rendering services on behalf of OCSD in connection with the planning, development and construction of the Project. In all its insurance coverages related to the Work, CONTRACTOR shall include clauses providing that each insurer shall waive all of its rights of recovery by subrogation against OCSD, its or their officers, agents, or employees, or any other contractor or subcontractor performing Work or rendering services at the Project. Where permitted by law, CONTRACTOR shall require similar written express waivers and insurance clauses from each of its Subcontractors of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a)would otherwise have a duty of indemnification, contractual or otherwise, (b)did not pay the insurance premium, directly or indirectly, and (c)whether or not such individual or entity has an insurable interest in the property damaged. 6. Pollution Liability Insurance: CONTRACTOR shall purchase and maintain insurance for pollution liability covering bodily injury, property damage (including loss of use of damaged property or property that has not been physically injured or destroyed), cleanup costs, and defense costs (including costs and expenses for investigation, defense, or settlement of claims). Coverage shall carry limits of at least One Million Dollars ($1,000,000) and shall apply to sudden and non-sudden pollution conditions (including sewage spills), both at the site or needed due to migration of pollutants from the site, resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials, or other irritants, contaminants or pollutants. If CONTRACTOR provides coverage written on a claims-made basis, OCSD has the right to approve or reject such coverage in its own discretion. If written on a claims- C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 17 of 25 made basis, the CONTRACTOR warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this Contract, and that continuous coverage will be maintained, or an extended discovery period will be exercised, for a period of two years beginning from the time that the Project under this Contract is completed. 7. Limits are Minimums: If CONTRACTOR maintains higher limits than the minimums shown in this Section, OCSD requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. B. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by OCSD. At the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self- insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration, and defense expenses. C. Other Insurance Provisions 1. Each such policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to contain, the following provisions: a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all public agencies from whom permits will be obtained, and their Directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of CONTRACTOR at or from any of the sites of OCSD in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 18 of 25 b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under this policy. 2. Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty(30) days prior written notice by certified mail, return receipt requested, and that coverage shall not be cancelled for non-payment of premium except after ten (10)days prior written notice by certified mail, return receipt requested. Should there be changes in coverage or an increase in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript endorsement from its insurer giving 30 days prior notice of such an event to OCSD, or to have its insurance broker/agent send to OCSD a certified letter describing the changes in coverage and any increase in deductible or SIR amounts. The certified letter must be sent Attention: Risk Management and shall be received not less than twenty (20)days prior to the effective date of the change(s). The letter must be signed by a Director or Officer of the broker/agent and must be on company letterhead, and may be sent via e-mail in pdf format. 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s)will be obtained, each policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to specify by name the public agency and its legislative members, officers, agents, CONSULTANTS, and employees, to be additional insureds. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 19 of 25 D. Acceptability of Insurers Insurers must have an "A2, or better, Policyholder's Rating, and a Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best Rating Guide. OCSD recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept State Compensation Insurance Fund for the required policy of workers compensation insurance, subject to OCSD's option, at any time during the term of this Contract, to require a change in insurer upon twenty (20)days written notice. Further, OCSD will require CONTRACTOR to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20)days of written notice to CONTRACTOR by OCSD or its agent. E. Verification of Coverage CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements affecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by OCSD before Work commences. OCSD reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by these Specifications at any time. F. Subcontractors CONTRACTOR shall be responsible to establish insurance requirements for any Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations and work. OCSD and any public agency issuing permits for the Project must be named as "Additional Insured"on any General Liability or Automobile Liability policy obtained by a Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 20 of 25 all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced required documents. G. Required Forms and Endorsements 1. Required ACORD Form a. Certificate of Liability Form 25 2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are shown, they are listed in order of preference) In the event any of the following forms are cancelled by Insurance Services Office, Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied. a. Commercial General Liability Form CG-0001 10 01 b. Additional Insured Including Form CG-2010 10 01 and Products-Completed Operations Form CG-2037 10 01 C. Waiver of Transfer of Rights of Form CG-2404 11 85; or Recovery Against Others to Us/ Form CG-2404 10 93 Waiver of Subrogation 3. Required State Compensation Insurance Fund Endorsements a. Waiver of Subrogation Endorsement No. 2570 b. Cancellation Notice Endorsement No. 2065 4. Additional Required Endorsements a. Notice of Policy Termination Manuscript Endorsement 5. Pollution Liability Endorsements There shall be a Separation of Insured Clause or endorsement, providing that coverage applies separately to each insured, except with respect to the limits of liability. There shall also be an endorsement or policy language containing a waiver of subrogation rights on the part of the insurer. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 21 of 25 OCSD, its directors, officers, agents, CONSULTANTS and employees and all public agencies from whom permits will be obtained as well as their directors, officers, agents, and employees shall be included as insureds under the policy. Any additional insured endorsement shall contain language at least as broad as the coverage language contained in ISO form CG 20 10 11 85 or alternatively in both CG 20 10 10 01 and CG 20 37 10 01 together. SECTION—17 RISK AND INDEMNIFICATION All Work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save, indemnify, defend, and keep OCSD and others harmless as more specifically set forth in General Conditions, "General Indemnification". SECTION-18 TERMINATION This Contract may be terminated in whole or in part in writing by OCSD in the event of substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may be terminated by OCSD for its convenience provided that such termination is effectuated in a manner and upon such conditions set forth more particularly in General Conditions, "Termination for Default" and/or"Termination for Convenience", provided that no termination may be effected unless proper notice is provided to CONTRACTOR at the time and in the manner provided in said General Conditions. If termination for default or convenience is effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be made at the time and in the manner provided in the General Conditions, "Termination for Default" and "Termination for Convenience". SECTION—19 WARRANTY The CONTRACTOR agrees to perform all Work under this Contract in accordance with the Contract Documents, including OCSD's designs, Drawings and Specifications. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 22 of 25 The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final Completion' that the completed Work is free from all defects due to faulty materials, equipment or workmanship and that it shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs of any damage to other parts of the system resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, OCSD may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any corrected deficiency until the later of(1)the remainder of the original one-year warranty period; or(2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and the Payment Bond shall remain in full force and effect through the guarantee period. The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's other express or implied assurances under this Contract, including but not limited to specific manufacturer or other extended warranties specified in the Plans and Specifications, or state law and in no way diminish any other rights that OCSD may have against the CONTRACTOR for faulty materials, equipment or Work. SECTION-20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety. SECTION—21 RESOLUTION OF DISPUTES OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 23 of 25 arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims provisions as set forth in the General Conditions and as otherwise required by law. SECTION—22 SAFETY & HEALTH CONTRACTOR shall comply with all applicable safety and health requirements mandated by federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as well as these Contract Documents, including but not limited to the General Requirements, Section entitled "Safety" and Exhibit B OCSD Safety Standards. SECTION-23 NOTICES Any notice required or permitted under this Contract may be given by ordinary mail at the address set forth below. Any parry whose address changes shall notify the other party in writing. TO OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Clerk of the Board Copy to: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Construction Manager Bradley R. Hogin, Esquire Woodruff, Spradlin & Smart 555 Anton Boulevard Suite 1200 Costa Mesa, California 92626 TO CONTRACTOR: RP Controls 1895 W. Commonwealth Avenue, Suite D Fullerton, CA 92833 Copy to: Ricardo J. Pimentel, Owner RP Controls 1895 W. Commonwealth Avenue, Suite D Fullerton, CA 92833 C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 24 of 25 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: RP Controls 1895 W. Commonwealth Avenue, Suite D Fullerton, CA 92833 By Printed Name Its CONTRACTOR's State License No. 981508 (Expiration Date 03/31/2021) OCSD: Orange County Sanitation District By David John Shawver Board Chairman By Kelly A. Lore Clerk of the Board By Lorenzo Tyner Assistant General Manager and Administrative Services Director C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 25 of 25 EXHIBIT A SCHEDULE OF PRICES C-EXA-080414 TABLE OF CONTENTS EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION.............................................................................1 EXA-2 PROGRESS PAYMENTS ..................................................................................1 EXA-3 RETENTION AND ESCROW ACCOUNTS........................................................1 EXA-4 STOP PAYMENT NOTICE.................................................................................3 EXA-5 PAYMENT TO SUBCONTRACTORS................................................................3 EXA-6 PAYMENT OF TAXES .......................................................................................3 EXA-7 FINAL PAYMENT...............................................................................................4 EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT...5 ATTACHMENT 1 -CERTIFICATION FOR REQUEST FOR PAYMENT.........................7 ATTACHMENT 2-SCHEDULE OF PRICES...................................................................8 C-EXA-080414 EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION CONTRACTOR will be paid the Contract Price according to the Schedule of Prices, and all other applicable terms and conditions of the Contract Documents. EXA-2 PROGRESSPAYMENTS Progress payments will be made in accordance with all applicable terms and conditions of the Contract Documents, including, but not limited to: 1. Contract Agreement—Section 11 —"Contract Price and Method of Payment;" 2. General Conditions—"Payment—General"; 3. General Conditions—"Payment—Applications for Payment"; 4. General Conditions—"Payment— Mobilization Payment Requirements;' 5. General Conditions—"Payment— Itemized Breakdown of Contract Lump Sum Prices"; 6. General Conditions—"Contract Price Adjustments and Payments"; 7. General Conditions—"Suspension of Payments"; 8. General Conditions—"OCSD's Right to Withhold Certain Amounts and Make Application Thereof"; and 9. General Conditions—"Final Payment." EXA-3 RETENTION AND ESCROW ACCOUNTS A. Retention: OCSD shall retain a percentage of each progress payment to assure satisfactory completion of the Work. The amount to be retained from each progress payment shall be determined as provided in General Conditions— "Retained Funds; Substitution of Securities". In all contracts between CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not exceed the percentage specified in the Contract Documents. C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 1 of 8 B. Substitution of Securities: CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." Payment of Escrow Agent: In lieu of substitution of securities as provided above, the CONTRACTOR may request and OCSD shall make payment of retention earned directly to the escrow agent at the expense of the CONTRACTOR. At the expense of the CONTRACTOR, the CONTRACTOR may direct the investment of the payments into securities consistent with Government Code §16430 and the CONTRACTOR shall receive the interest earned on the investments upon the same terms provided for in this article for securities deposited by the CONTRACTOR. Upon satisfactory completion of the Contract, the CONTRACTOR shall receive from the escrow agent all securities, interest and payments received by the escrow agent from OCSD, pursuant to the terms of this article. The CONTRACTOR shall pay to each Subcontractor, not later than twenty (20)calendar days after receipt of the payment, the respective amount of interest earned, net of costs attributed to retention withheld from each Subcontractor, on the amount of retention withheld to ensure the performance of the Subcontractor. The escrow agreement used by the escrow agent pursuant to this article shall be substantially similar to the form set forth in §22300 of the California Public Contract Code. C. Release of Retention: Upon Final Acceptance of the Work, the CONTRACTOR shall submit an invoice for release of retention in accordance with the terms of the Contract. D. Additional Deductibles: In addition to the retentions described above, OCSD may deduct from each progress payment any or all of the following: 1. Liquidated Damages that have occurred as of the date of the application for progress payment; 2. Deductions from previous progress payments already paid, due to OCSD's discovery of deficiencies in the Work or non-compliance with the Specifications or any other requirement of the Contract; 3. Sums expended by OCSD in performing any of the CONTRACTOR'S obligations under the Contract that the CONTRACTOR has failed to perform, and; 4. Other sums that OCSD is entitled to recover from the CONTRACTOR under the terms of the Contract, including without limitation insurance deductibles and assessments. C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 2 of 8 The failure of OCSD to deduct any of the above-identified sums from a progress payment shall not constitute a waiver of OCSD's right to such sums or to deduct them from a later progress payment. EXA-4 STOP PAYMENT NOTICE In addition to other amounts properly withheld under this article or under other provisions of the Contract, OCSD shall retain from progress payments otherwise due the CONTRACTOR an amount equal to one hundred twenty-five percent (125%)of the amount claimed under any stop payment notice under Civil Code §9350 at. seq. or other lien filed against the CONTRACTOR for labor, materials, supplies, equipment, and any other thing of value claimed to have been furnished to and/or incorporated into the Work; or for any other alleged contribution thereto. In addition to the foregoing and in accordance with Civil Code§9358 OCSD may also satisfy its duty to withhold funds for stop payment notices by refusing to release funds held in escrow pursuant to public receipt of a release of stop payment notice executed by a stop payment notice claimant, a stop payment notice release bond, an order of a court of competent jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR has resolved such claim by settlement. EXA-5 PAYMENT TO SUBCONTRACTORS Requirements 1. The CONTRACTOR shall pay all Subcontractors for and on account of Work performed by such Subcontractors, not later than seven (7) days after receipt of each progress payment as required by the California Business and Professions Code §7108.5. Such payments to Subcontractors shall be based on the measurements and estimates made pursuant to article progress payments provided herein. 2. Except as specifically provided by law, the CONTRACTOR shall pay all Subcontractors any and all retention due and owing for and on account of Work performed by such Subcontractors not later than seven (7)days after CONTRACTOR'S receipt of said retention proceeds from OCSD as required by the California Public Contract Code§7107. EXA-6 PAYMENT OF TAXES Unless otherwise specifically provided in this Contract, the Contract Price includes full compensation to the CONTRACTOR for all taxes. The CONTRACTOR shall pay all federal, state, and local taxes, and duties applicable to and assessable against any Work, including but not limited to retail sales and use, transportation, export, import, business, and special taxes. The CONTRACTOR shall ascertain and pay the taxes when due. The CONTRACTOR will maintain auditable records, subject to OCSD reviews, confirming that tax payments are current at all times. C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 3 of 8 EXA-7 FINAL PAYMENT After Final Acceptance of the Work, as more particularly set forth in the General Conditions, "Final Acceptance and Final Completion", and after Resolution of the Board authorizing final payment and satisfaction of the requirements as more particularly set forth in General Conditions—"Final Payment", a final payment will be made as follows: 1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an application for Final Payment to OCSD, including: a. The proposed total amount due the CONTRACTOR, segregated by items on the payment schedule, amendments, Change Orders, and other bases for payment; b. Deductions for prior progress payments; c. Amounts retained; d. A conditional waiver and release on final payment for each Subcontractor(per Civil Code Section 8136); e. A conditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8136); f. List of Claims the CONTRACTOR intends to file at that time or a statement that no Claims will be filed, g. List of pending unsettled claims, stating claimed amounts, and copies of any and all complaints and/or demands for arbitration received by the CONTRACTOR; and h. For each and every claim that resulted in litigation or arbitration which the CONTRACTOR has settled, a conformed copy of the Request for Dismissal with prejudice or other satisfactory evidence the arbitration is resolved. 2. The application for Final Payment shall include complete and legally effective releases or waivers of liens and stop payment notices satisfactory to OCSD, arising out of or filed in connection with the Work. Prior progress payments shall be subject to correction in OCSD's review of the application for Final Payment. Claims filed with the application for Final Payment must be otherwise timely under the Contract and applicable law. 3. Within a reasonable time, OCSD will review the CONTRACTOR'S application for Final Payment. Any recommended changes or corrections will then be forwarded to the CONTRACTOR. Within ten (10) calendar days after receipt of recommended changes from OCSD, the CONTRACTOR will make the changes, or list Claims that will be filed as a result of the changes, and shall submit the revised application for Final Payment. Upon C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 4 of 8 acceptance by OCSD, the revised application for Final Payment will become the approved application for Final Payment. 4. If no Claims have been filed with the initial or any revised application for Final Payment, and no Claims remain unsettled within thirty-five (35) calendar days after Final Acceptance of the Work by OCSD, and agreements are reached on all issues regarding the application for Final Payment, OCSD, in exchange for an executed release, satisfactory in form and substance to OCSD, will pay the entire sum found due on the approved application for Final Payment, including the amount, if any, allowed on settled Claims. 5. The release from the CONTRACTOR shall be from any and all Claims arising under the Contract, except for Claims that with the concurrence of OCSD are specifically reserved, and shall release and waive all unreserved Claims against OCSD and its officers, directors, employees and authorized representatives. The release shall be accompanied by a certification by the CONTRACTOR that: a. It has resolved all Subcontractors, Suppliers and other Claims that are related to the settled Claims included in the Final Payment; b. It has no reason to believe that any party has a valid claim against the CONTRACTOR or OCSD which has not been communicated in writing by the CONTRACTOR to OCSD as of the date of the certificate; c. All warranties are in full force and effect, and; d. The releases and the warranties shall survive Final Payment. 6. If any claims remain open, OCSD may make Final Payment subject to resolution of those claims. OCSD may withhold from the Final Payment an amount not to exceed one hundred fifty percent (150%) of the sum of the amounts of the open claims, and one hundred twenty-five percent (125%) of the amounts of open stop payment notices referred to in article entitled stop payment notices herein. 7. The CONTRACTOR shall provide an unconditional waiver and release on final payment from each Subcontractor and Supplier providing Work under the Contract(per Civil Code Section 8138) and an unconditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8138)within thirty (30)days of receipt of Final Payment. EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT Notwithstanding OCSD's acceptance of the application for Final Payment and irrespective of whether it is before or after Final Payment has been made, OCSD shall not be precluded from subsequently showing that: 1. The true and correct amount payable for the Work is different from that previously accepted; C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 5 of 8 2. The previously-accepted Work did not in fact conform to the Contract requirements, or; 3. A previous payment or portion thereof for Work was improperly made. OCSD also shall not be stopped from demanding and recovering damages from the CONTRACTOR, as appropriate, under any of the foregoing circumstances as permitted under the Contract or applicable law. C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 6 of 8 ATTACHMENT 1 —CERTIFICATION FOR REQUEST FOR PAYMENT I hereby certify under penalty of perjury as follows: That the claim for payment is in all respects true, correct; that the services mentioned herein were actually rendered and/or supplies delivered to OCSD in accordance with the Contract. I understand that it is a violation of both the federal and California False Claims Ads to knowingly present or cause to be presented to OCSD a false claim for payment or approval. A claim includes a demand or request for money. It is also a violation of the False Claims Acts to knowingly make use of a false record or statement to get a false claim paid. The term "knowingly" includes either actual knowledge of the information, deliberate ignorance of the truth or falsity of the information, or reckless disregard for the truth or falsity of the information. Proof of specific intent to defraud is not necessary under the False Claims Acts. I understand that the penalties under the Federal False Claims Ad and State of California False Claims Act are non-exclusive, and are in addition to any other remedies which OCSD may have either under contract or law. I hereby further certify, to the best of my knowledge and belief, that: 1. The amounts requested are only for performance in accordance with the Specifications, terms, and conditions of the Contract; 2. Payments to Subcontractors and Suppliers have been made from previous payments received under the Contract, and timely payments will be made from the proceeds of the payment covered by this certification; 3. This request for progress payments does not include any amounts which the prime CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in accordance with the terms and conditions of the subcontract; and 4. This certification is not to be construed as Final Acceptance of a Subcontractors performance. Name Title Dale C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 7 of 8 ATTACHMENT 2— SCHEDULE OF PRICES See next pages for Bid Submittal Forms (RP Controls) BF-14 SCHEDULE OF PRICES, Page 1 -2 C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 8 of 8 Bid Submitted By: l'1 CON ROts Itleere of FYm) BF-14 SCHEDULE OF PRICES INSTRUCTIONS A. General For Unit Prices, it is understood that the following quantities are approximate only and are solely for the purpose of estimating the comparison of Bids, and that the actual value of Work will be computed based upon the actual quantities in the completed Work,whether they be more or less than those shown. CONTRACTOR's compensation for the Work under the Contract Documents will be computed based upon the lump sum amount of the Contract at time of award, plus any additional or deleted costs approved by OCSO via approved Change Orders, pursuant to the Contract Documents. Bidder shall separately price and accurately reflect costs associated with each line item, leaving no blanks. Any and all modifications to the Bid must be initialed by an authorized representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid. Bidders are reminded of Instruction to Bidders, Discrepancy in Bid Items,which, in summary, provides that the total prim for each Rem shall be based on the Unit Price listed for each item multiplied by the quantity; and the correct Total Price for each Rem shall be totaled to determine the Total Amount of Bid. All applicable costs including overhead and profit shall be reflected in the respective unit costs and the TOTAL AMOUNT OF BID. The Bid once shall include all costs to complete the Work including profit overhead. etc., unless otherwise specified in the Contract Documents All applicable sales taxes state and/or federal and any other special taxes Patent rights or royalties shall be included in the prices quoted in this Bid B. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID. Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials, equipment and services for the construction of the Project per the Contract Documents. BF-14 SCHEDULE OF PRICES C-BF-121817 PROJECT NO.FE17-05 PLANT 1 ICS NET WORK EXTENSION Page 1 of 2 Bid Submitted By: I P W W-wLS (Name of Firm) EXHIBIT A SCHEDULE OF PRICES BASE BID ITEMS (Refer to Note 1 in the Instructions): - Item Description Unit of Ap x Unit Price Emended Price No. Measurement 1. Mobilization: Furnish all labor, materials and equipment and other activities required for Mobilization as described in Division 01, Section Lump Sum +}, iOQ�w { _ $ 22,000.00 01155 and in conformance with the Contract Documents,for the lump sum I price of 5 t 2. Furnish all labor, materials,equipment and services necessary for the i G1 completion of the Contract Work of Project No. FE17.05, Plant 1 ICS Lump Sum : �{ _ $ Network Extension, except for the Work specified under Bid Item No. 1, % L in conformance with the Contract Documents,for a lump sum price of... TOTAL AMOUNT OF BID (BASIS OF AWARD) $ 52 1, X17 BF-14 SCHEDULE OF PRICES C-BF-121817 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION Page 2 of 2 OPERATIONS COMMITTEE neebng Date To ad.of Dir. 06/06f19 -- AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lan Wiborg, Director of Environmental Services SUBJECT: ORANGE COUNTY SANITATION DISTRICT ENVIRONMENTAL SERVICES RESOURCE PROTECTION GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND Each month, staff provides an informational presentation on topics of interest to the Board of Directors. This month's topic: Orange County Sanitation District Environmental Services Resource Protection: Protecting Water, Biosolids, and Gas for Reuse. RELEVANT STANDARDS • Comply with the Clean Water Act • Safe, beneficial reuse of Biosolids • Meet volume and water quality needs for the GW RS ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A Page 1 of 1 ng OPERATIONS COMMITTEE Nee g6/06/19/OS/19 TO Bd.Of Dir. -- AGENDA REPORT Item NumberIem Number s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: DIGESTER GAS FACILITIES REHABILITATION, PROJECT NO. J-124 GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND Orange County Sanitation District (Sanitation District) maintains a system of digester gas handling facilities including compressors, holders, filters, piping, flares, and a building for the compressors. These facilities must operate safely and reliably in order to capture, store, and transport digester gas (methane) generated during the wastewater treatment process so that the methane can be used as fuel for the Sanitation District's electrical generation facilities. Digester Gas Facilities Rehabilitation, Project No. J-124, will rehabilitate or replace digester gas handling facilities at Plant Nos. 1 and 2, which were installed in the 1980s. The need for the project and the general configuration of the facilities were defined in the Digester Gas Facilities Study for Plant Nos. 1 and 2, Project No. SP-141, completed in 2015. The current $53 million construction cost budget was based on the 2015 study's cost estimate. RELEVANT STANDARDS • Use all practical and effective means for resource recovery • 24/7/365 treatment plant reliability PROBLEM On May 13, 2019, the design consultant submitted the Preliminary Design Report cost estimate. Based on this updated cost estimate, the project cost is estimated to increase from $96.5 million to $156.5 million, a $60 million increase. A higher construction cost estimate was anticipated as the Fiscal Year 2019-20 budget was being developed, so $40 million was reserved for that purpose in the future rehabilitation and replacement line item. A comparison of the two estimates indicates that the difference is primarily due to the planning study's underestimation of construction costs. The project Scope of Work remains the same. The facility described in the Preliminary Design Report is largely consistent with the planning study recommendations. Page 1 of 3 PROPOSED SOLUTION Staff recommends a project budget increase of $60 million, $40 million of which is included in the$200 million allocation for future rehabilitation and replacement projects in the proposed Fiscal Year 2019-20 Budget Update. An additional $20 million will also be funded from this allocation. This increase will not affect the remaining rate schedule. Since the estimate was received on May 13, the Capital Improvement Program Budget information item presented at the May 1 Operations Committee meeting and the May 8 Administration Committee meeting did not address this issue. ADDITIONAL INFORMATION A Value Engineering team reviewed the Preliminary Design Report recommendations the week of April 29, 2019. Value engineering is a formal process for an independent team to review the proposed project and identify potential options to lower cost, expedite construction, or improve the design. The Value Engineering team was provided through the Supplemental Engineering and Staff Support Services contract with Jacobs. The project team is currently working with the design consultant to review which of the Value Engineering recommendations are viable and consistent with the project objectives. The recommendations, however, are small compared to the magnitude of the construction cost increase. PRIOR COMMITTEE/BOARD ACTIONS November 2017 - Approved a Professional Design Services Agreement with Brown and Caldwell to provide engineering design services for the Digester Gas Facilities Rehabilitation, Project No. J-124, for an amount not to exceed $11,770,000; and approved a contingency of$1,177,000 (10%). CEQA A Notice of Exemption (NOE) was filed at the County Clerk's office on November 20, 2017. A revised NOE will need to be filed due to changes in the project, however, the project will remain exempt from CEQA under the Class 1 and 2 categorical exemptions set forth in California Code of Regulations sections 15301 and 15302. Section 15301 (Class 1)exempts from CEQAthe operation, repair, maintenance or minor alteration of existing public or private structures, facilities involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination including"(b)Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services." Section 15302 (Class 2) exempts from CEQA the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced, including "(c) Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity." Page 2 of 3 FINANCIAL CONSIDERATIONS The $60 million increase will come from funds allocated for future rehabilitation and replacement. This will not affect the remaining rate schedule. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A JM:sa:gc Page 3 of 3 OPERATIONS COMMITTEE Meeting Date To ad.of oir. 06/0S/19 — AGENDA REPORT Item Number Item Number 9 — Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: FY 2019-20 BUDGET UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND The proposed Operating, Capital, DebUCOP Service, and Self-Insurance Budgets for FY 2019-20 are as follows: Adopted Proposed Budget Budget FY 2019-20 FY 2019-20 Operations & Maintenance $160,204,370 $168,216,487 Net Capital Improvement Program 137,027,258 153,377,431 Allocation for Rehabilitation/Replacement 0 200,000,000 Debt/COP Service 79,956,000 76,776,000 General Liability and Property Self-Insurance 780,000 780,000 Worker's Compensation Self Insurance 1,750,000 1,750,000 Intra-District Joint Equity Purchase/Sale(') 3,500,000 5,000,000 TOTAL $383,217,628 $605,848,918 (')Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15(RA15). The FY 2019-20 Proposed Budget Update represents known revisions to the second year of the two-year budget and is enclosed for the Committee's consideration. RELEVANT STANDARDS • Produce Operations and CIP budgets every two years, with annual update PROBLEM The Orange County Sanitation District (Sanitation District) cannot maintain and monitor its financial condition, operations, and future capital improvements without examination and transparency into its resources, revenues, reserves, and outlays. Page 1 of 2 PROPOSED SOLUTION Providing the Board with an understanding of the Sanitation District's resources will assist in the approval of the proposed two-year budget. TIMING CONCERNS The proposed budget update, effective July 1 of this year, will be finalized and presented to the Board for adoption in June. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will not be able to carry out its financial fiduciary duties beyond June 30, 2019. PRIOR COMMITTEE/BOARD ACTIONS The FY 2018-19 and 2019-20 biennium budget was adopted on June 27, 2018. ADDITIONAL INFORMATION The proposed FY 2019-20 operating and capital improvement budget totals $321.5 million, or$24.3 million (8.1 percent), above what was approved last year as the second year of the adopted two-year budget. The increase in the FY 2019-20 budget is primarily attributable to $16.3 million of delays in construction start dates where spending has been deferred and an increase of$8 million in operating budget. $200 million has been set aside for Rehabilitation and Replacement of assets. This amount will be updated in future years as the funds are expended. The proposed amounts for Debt Service, Self-Insurance, and Intra-District Transfers total $84.3 million, which approximate the originally adopted FY 2019-20 budget. Digester Gas Facilities Rehabilitation, Project No. J-124, will rehabilitate or replace digester gas handling facilities at Plants Nos.1 and 2. The project budget is found on page A-8 of the Fiscal Year 2019-20 Budget Update book. Subsequent to the printing of the budget book, an updated cost estimate was received increasing the amount of the project from $96.5 million to $156.5 million. Staff recommends a project budget increase of $60 million, $40 million of which is included in the $200 million allocation for future rehabilitation and replacement projects in the proposed Fiscal Year 2019-20 Budget Update. An additional $20 million will also be funded from this allocation. This increase will not affect the remaining rate schedule. ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: Budget Update Fiscal Year 2019-20 (separate electronic& hard copy document) Page 2 of 2 ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California LAFCO Local Agency Formation RWQCB Regional Water Quality Water Agencies Commission Control Board APWA American Public Works LOS Level Of Service SARFPA Santa Ana River Flood Association Protection Agency AQMD Air Quality Management MGD Million Gallons Per Day SARI Santa Ana River District Interceptor ASCE American Society of Civil MOU Memorandum of SARWQCB Santa Ana Regional Water Engineers Understanding Quality Control Board BOD Biochemical Oxygen Demand NACWA National Association of Clean SAWPA Santa Ana Watershed Water Agencies Project Authority California Air Resources National Environmental Supervisory Control And CARB Board NEPA Policy Act SCADA Data Acquisition California Association of Non-Governmental Southern California CASA Sanitation Agencies NGOs Organizations SCAP Alliance of Publicly Owned Treatment Works CCTV Closed Circuit Television NPDES National Pollutant Discharge SCAQMD South Coast Air Quality Elimination System Management District CEQA California Environmental NWRI National Water Research SOCWA South Orange County Quality Act Institute Wastewater Authority CIP Capital Improvement O&M Operations&Maintenance SRF Clean Water State Program Revolving Fund California Regional Water Orange County Council of Sewer System CRWQCe Quality Control Board OCCOG Governments SSMP Management Plan CWA Clean Water Act OCHCA Orange County Health Care SSO Sanitary Sewer Overflow Agency California Water Environment Orange County Sanitation State Water Resources CWEA Association OCSD District SWRCe Control Board EIR Environmental Impact Report OCWD Orange County Water District TDS Total Dissolved Solids EMT Executive Management Team COBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load EPA US Environmental Protection OSHA Occupational Safety and 7S5 Total Suspended Solids Agency Health Administration Professional Waste Discharge FOG Fats,Oils,and Grease PCSA Consultant/Construction WDR Wastee Discharge Services Agreement gpd gallons per day PDSA Professional Design Services WEE Water Environment Agreement Federation GWRS Groundwater Replenishment POTW Publicly Owned Treatment WERE Water Environment& System Works Reuse Foundation ICS Incident Command System ppm pans per million WIFIA Water Infrastructure Finance and Innovation Act Integrated Emergency Professional Services Water Infrastructure IERP Response Plan PSA Agreement WIIN Improvements for the Nation Act JPA Joint Powers Authority REP Request For Proposal WRDA Water Resources Develo ment Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS—A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS —The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms.Testing for BOD is done to assess the amount of organic matter in water. BIOGAS—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements,additional capacity, and projects for the support facilities. COLIFORM BACTERIA—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere,used as indicators of sewage pollution. E.coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP)—A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (Dfr)—The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG)— In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming("greenhouse stil . GROUNDWATER REPLENISHMENT SYSTEM(GWRS)—Ajoint water reclamation project that proactively responds to Southern California's current and future water needs.This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE(LOS)—Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) — A N-nitrosamine suspected cancer causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP)—An alliance of the National Association of Clean Water Agencies and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PLUME—A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS(POTW)—A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR(SARI) LINE—A regional brine line designed to convey 30 million gallons per day of non- reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal,after treatment. SANITARY SEWER— Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban runoff. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD)—Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. SECONDARY TREATMENT— Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. SLUDGE—Untreated solid material created by the treatment of wastewater. TOTAL SUSPENDED SOLIDS(TSS)—The amount of solids floating and in suspension in wastewater. TRICKLING FILTER—A biological secondary treatment process in which bacteria and other microorganisms,growing as slime on the surface of rocks or plastic media,consume nutrients in wastewater as it trickles over them. URBAN RUNOFF—Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. WASTEWATER—Any water that enters the sanitary sewer. WATERSHED—A land area from which water drains to a particular water body.The Orange County Sanitation District's service area is in the Santa Ana River Watershed.