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Home My WebLink About07-05-2017 Operations Committee Meeting Supplemental Agenda Orange County Sanitation District Wednesday, July 5, 2017 Regular Meeting of the 5:00 P.M. OPERATIONS COMMITTEE Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 SUPPLEMENTAL AGENDA At the request of the Director of Operations and Maintenance, the following item will be pulled from consideration: CONSENT CALENDAR: 4. PREVENTATIVE MAINTENANCE OF STANDBY EMERGENCY ELECTRICAL GENERATORS, SPECIFICATION NO. 9-2017-822BD (Ed Torres) At the direction of the Board of Directors, meeting of June 28, 2017, the following item will be added to the agenda for consideration: NON-CONSENT ITEMS: 9.1 REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND PAVING AREA, CONTRACT NO. PI-115B (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: A. Receive and file bid tabulation and recommendation; B. Award a construction contract to ODC Engineering and Technology for Rehabilitation of Fleet Services Building, Building 8 and Paving Area, Contract No. P1-1158, part of Title 24 Access Compliance and Building Rehabilitation, Project No. 121-115, for a total amount not to exceed $2,235,609; C. Approve a contingency of$223,563 (10%); and D. Approve a budget increase of$791,000 for Title 24 Access Compliance and Building Rehabilitation, Project No. P1-115, for a total budget amount of $18,400,000. Page 2 of 2 The following items were approved at the regular meeting of the Board of Directors held June 28, 2017, At the direction of the Board of Directors, these items will be added to the agenda for additional information only. INFORMATION ITEMS: 11. LANE CHANNEL CROSSING PROJECT— PROJECT NO. FE16-11 (Rob Thompson) 12. PLANT NO. 1 PRIMARY CLARIFIER REHABILITATION (Ed Torres) I hereby certify under penalty of perjury under the laws of the State of California that the foregoing Supplemental Agenda was posted outside the main gate of the District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California not less than 72 hours prior to the meeting. Dated this 290 day of June 2017//n�j/ l� Kell A. L CMC Cle k of th card OPERATIONS COMMITTEE Meeting Date TO Bd.dDir. 0 7/0 5 /17 07/26/17 AGENDA REPORT Rem Number rem Number 9.1 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND PAVING AREA, CONTRACT NO. P1-115B GENERAL MANAGER'S RECOMMENDATION A. Receive and file bid tabulation and recommendation; B. Award a construction contract to ODC Engineering and Technology for Rehabilitation of Fleet Services Building, Building 8 and Paving Area, Contract No. P1-115B, part of Title 24 Access Compliance and Building Rehabilitation, Project No. P1-115, fora total amount not to exceed $2,235,609; C. Approve a contingency of $223,563 (10%); and D. Approve a budget increase of $791,000 for Title 24 Access Compliance and Building Rehabilitation, Project No. P1-115, for a total budget amount of $18,400,000. BACKGROUND Rehabilitation of Fleet Services Building, Building 8 and Paving Area, Contract No. P1-115B, is the second of two construction contracts under Title 24 Access Compliance and Building Rehabilitation, Project No. P1-115, which retrofits existing support buildings and trailers at Plant No. 1 to meet accessibility and other code requirements, and provide maintenance replacements such as roofs and lighting. The scope of Contract No. P1-115A included refurbishment of Buildings 1, 2, 3, 4, 5, 6, and 7; Shop A and B; demolition of Building H; and general grading and paving of the area. This construction contract generally refurbished the buildings listed, extending their service life and bringing them into compliance with new safety, energy, access, and seismic regulations to satisfy an agreement with the City of Fountain Valley regarding building permitting. The scope of Contract No. P1-115B includes replacement of roofing at Building 8 and the Fleet Services Building, installation of guardrail along the roofs, upgrades to the lighting inside both buildings, and office renovations in the Fleet Services Building to provide an equal facilitation restroom. Additionally, the project will install car charging stations for the Orange County Sanitation District's (Sanitation District) electric vehicles recently added to its fleet, and will replace the deteriorated pavement in the surrounding parking lot areas. Page 1 d 4 The Sanitation District received two sealed bids on May 24, 2017. The low bid exceeded the engineer's estimate by approximately 6%. The bids were evaluated in accordance with the Sanitation District's policies and procedures. Staff estimates that this project will require an additional $791,000 of project budget. The additional budget is requested to cover greater staff effort with a longer construction duration, a higher bid cost than assumed for the previous budget, and higher than anticipated staff costs associated with closing out the first of the two construction contracts. The staff budget had been based on a construction duration of 300 calendar days, but as the final design was completed, it was realized that 485 calendar days would be needed to sequence the work to maintain productive use of the facilities during construction. RELEVANT STANDARDS • CA Government Code Section 20783: Award to the "Lowest Responsive and Responsible Bidder." PROBLEM Building 8 and the Fleet Services buildings need maintenance repairs and upgrades to meet accessibility requirements and other code requirements. Also, the surrounding pavement is in poor condition and needs to be replaced to provide proper drainage. Based on the higher bid amount of this contract, greater staff effort associated with a longer construction duration, and higher than anticipated staff costs to complete Contract No. P1-115A, an increase in the project budget of$791,000 is recommended. PROPOSED SOLUTION Award the construction contract, Rehabilitation of Fleet Services Building, Building 8 and Paving Area, Contract No. P1-11513, and increase the project budget. TIMING CONCERNS The roofs at both buildings are in need of replacement and also need upgrades to meet accessibility and current code requirements. Since the work includes roof repairs, starting the project in the summer 2017 will allow the Contractor to replace the roofs before the wet weather season. RAMIFICATIONS OF NOT TAKING ACTION Increased repair costs from leaking roofs and potential safety concerns due to accessibility to rooftop equipment. Page 2 of 4 PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District advertised for bids on April 18, 2017 and April 25, 2017. Two sealed bids were received on May 24, 2017. The bids were evaluated in accordance with the Sanitation District's policies and procedures. Staff recommends awarding a construction contract to ODC Engineering and Technology for Rehabilitation of Fleet Services Building, Building 8 and Paving Area, Contract No. P1-115B, for a total amount not to exceed $2,235,609. Summary information on the bid opening for Rehabilitation of Fleet Services Building, Building 8 and Paving Area, Contract No. P1-115B, is as follows: Project Budget $17,509,000 Engineer's Estimate $ 2,100,000 Lowest Responsive, Responsible Bid $ 2,235,609 High Bid $ 3,990,000 Bidders Amount of Bid ODC Engineering and Technology $ 2,235,609 Neman-Midland Corporation $ 3,990,000 Both sealed bids exceeded the Engineer's Estimate of$2,100,000, and staff recommends an increase of$791,000 to cover the added construction cost, contingency, and staffing costs needed for this Contract. CEQA A Notice of Exemption was filed and recorded with the County of Orange on January 5, 2011. This project is exempt under Section 15301, Class 1, because it involves minor modifications or replacement of existing facilities involving no expansion of use or capacity beyond that existing at the time of the lead agency's determination. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted (Budget FY2016-17 and 2017-18, Section 8, Page 87), but the budget is insufficient for the recommended action. The funds will be allocated to the projectfrom the Replacement, Rehabilitation, and Refurbishment line item in the cash flow projections, FY2016-17 and 2017-18, Section 4, Page 16. Page 3 d 4 ATTACHMENT The following attachment(s)maybe viewed on-line at the OCSD website(www.ocsd.com)with the complete agenda package: • Construction Contract AL:dm:gc Page 4 of 4 PART A CONTRACT AGREEMENT C-CA-011317 TABLE OF CONTENTS CONTRACT AGREEMENT SECTION - 1 GENERAL CONDITIONS..................................................................1 SECTION -2 MATERIALS AND LABOR.................................................................4 SECTION -3 PROJECT..........................................................................................5 SECTION -4 PLANS AND SPECIFICATONS ........................................................5 SECTION -5 TIME OF COMMENCEMENT AND COMPLETION ..........................5 SECTION -6 TIME IS OF THE ESSENCE .............................................................6 SECTION -7 EXCUSABLE DELAYS......................................................................6 SECTION -8 EXTRA WORK...................................................................................7 SECTION -9 CHANGES IN PROJECT...................................................................7 SECTION - 10 LIQUIDATED DAMAGES FOR DELAY.............................................8 SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................8 SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS ............................................................................................10 SECTION - 13 COMPLETION.................................................................................10 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................................................................................23 SECTION - 19 WARRANTY....................................................................................23 SECTION -20 ASSIGNMENT.................................................................................24 SECTION -21 RESOLUTION OF DISPUTES ........................................................24 SECTION -22 SAFETY& HEALTH ........................................................................24 SECTION -23 NOTICES.........................................................................................25 C-CA-011317 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Part of PROJECT NO. P1-115 TITLE 24 ACCESS COMPLIANCE AND BUILDING REHABILITATION PROJECT THIS AGREEMENT is made and entered into, to be effective, this July 26, 2017, by and between ODC Engineering and Technology, 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. CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 1 of 26 A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions—Definitions. 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: C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 2 of 26 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 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 CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 3 of 26 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. 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. C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 4 of 26 SECTION-3 PROJECT The Project is described as: CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Part of PROJECT NO. P1-115 TITLE 24 ACCESS COMPLIANCE AND BUILDING REHABILITATION PROJECT SECTION —4 PLANS AND SPECIFICATONS The Work to be done is shown in a set of Plans and Specifications entitled: CONTRACT NO. PI-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Part of PROJECT NO. P1-115 TITLE 24 ACCESS COMPLIANCE AND BUILDING REHABILITATION PROJECT 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 485 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 Fifteen (15)calendar days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 5 of 26 In addition, CONTRACTOR shall accomplish such milestones within the periods of performance set forth in Appendix A of the Special Provisions entitled "Work Completion Schedule." 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, 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. C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 6 of 26 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. 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'. CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 7 of 26 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 Two Million Two Hundred Thirty-Five Thousand Six Hundred Nine Dollars ($2,235,609)as itemized on the Attached Exhibit W'. Upon satisfaction of the conditions precedent to payment set forth in the General Requirements, Additional General Requirements and General Conditions (including but 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. C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 8 of 26 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: 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. CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 9 of 26 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. 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. C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 10 of 26 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. 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. CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 11 of 26 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 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 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. F. Registration: Record of Wages: Insoection: 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 C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 12 of 26 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: 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 CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 13 of 26 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 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 Dremises/worksite without Dossessina 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 C-CA-011317 CONFORMED CONTRACT NO. Pl-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 14 of 26 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 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 CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 15 of 26 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: 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 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. C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 16 of 26 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 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. CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 17 of 26 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- 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 C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 18 of 26 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. 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, CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 19 of 26 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. D. Acceptability of Insurers Insurers must have an "A-", 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 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. C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 20 of 26 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 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. CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 21 of 26 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. 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, C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 22 of 26 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. 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 CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 23 of 26 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 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. C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 24 of 26 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: CDC Engineering and Technology 5675 Walnut Ridge Drive Agoura, CA 91301 Copy to: Oved Dagan, President ODC Engineering and Technology 5675 Walnut Ridge Drive Agoura, CA 91301 CONFORMED C-CA-011317 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8AND AREA PAVING Page 25 of 26 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: ODC Engineering and Technology 5675 Walnut Ridge Drive Agoura, CA 91301 By Printed Name Its CONTRACTOR's State License No. 822239 (Expiration Date—07/31/2017) OCSD: Orange County Sanitation District By Gregory C. Sebourn, PLS Chair, Board of Directors By Kelly A. Lore Clerk of the Board By Marc Dubois Contracts, Purchasing and Materials Management Manager C-CA-011317 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 26 of 26 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. CONFORMED C-EXA-080414 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING 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 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8 AND AREA PAVING 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. CONFORMED C-EXA-080414 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING 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 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8 AND AREA PAVING 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 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING 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 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8 AND AREA PAVING 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 CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND AREA PAVING Page 7 of 8 ATTACHMENT 2—SCHEDULE OF PRICES See next pages from the Bid Submittal Forms (ODC Engineering and Technology) BF-14 Schedule of Prices, Pages 1-4 C-EXA-080414 CONFORMED CONTRACT NO. P1-115B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8 AND AREA PAVING Page 8 of 8 DOC EWM%RING 8 7ECMi*LOGY Bid Submitted By: (Nam of Firm) BF-14 SCHEDULE OF PRICES INSTRUCTIONS A. General For Unit Prices, it is understood that the following quantifies 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 item shall be based on the Unit Price listed for each item multiplied by the quantity; and the correct Total Price for each item 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, THE LOWEST BID IS DEFINED AS THE"TOTAL AMOUNT OF BID" LISTED IN THIS BID, UNLESS OTHERWISE SPECIFIED BELOW. 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. Bidders shall accurately reflect the cost to perform the Work. OCSD may reject unbalanced Bids. Refer to Part 2—INSTRUCTIONS TO BIDDERS. BF-14 SCHEDULE OF PRICES C-BF-021115 CONTRACT NO. PIA 15B REHABILITATION OF FLEET SERVICES BUILDING,BUILDING 8 AND AREA PAVING Page 1 of 4 \ f \ \ V )7q dOZ° 2§; m 0\ � \ \ # \ no AS . - ! — « , — _ w \ m � k /) ) { q (/ ! • v! ! $ /f \ ° ` {� \)0 aE $ |! — : E — k \cc 0 / a {)� a / \E,A )) /)}k/)) « ! 9 k k! \ \ k\ kk � [ M0 !0 ) ) / k/) {} 0 �) k � kk {\ _ - 16 / \ \\\ 6§§ j0 00 - % ( / § & § 7 ƒ = ! k ! : ` \ \ {\ { / \o | 222f § | ` 2 MW ` G \ �2 )j\ ! § 2 ! ! IA | (/\ k M )« � � f § E! E , {, 5 (k0 2 \ /\\ \ (\t! ■ ! /! Fn Lx E 16 \ 0 ! E ) \f)7 _ = } // \ a k \ / = : \ } Lo OM\\ O � w {w 0 ) |! a « \ �kp > \ (f § ` \ 2° } ° # § ( \ E _ \ m IR � ! e \ § & \ S : S}/D \ § � E - - | e., ■ e , | ze k tkkWg ! | ) § kk ! f£ ! WE dE J tE \\ ! ! F20z ! w; O £ ! $ m \ | { ! E <§ § ■ § Ole< OPERATIONS COMMITTEE Meeting Date To ad.of Dir. 0705,17 - AGENDA REPORT em Number Iem Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: LANE CHANNEL CROSSING PROJECT, PROJECT NO. FE16-11 GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND The Orange County Sanitation District (Sanitation District) owns and maintains the Von Karmen Trunk Sewer, including a 36-inch sewer inside a concrete encasement under the Orange County Flood Control District's (OCFCD) Lane Channel. In addition, the Sanitation District has two manholes on the channel levees. This section of sewer is located at the intersection of Von Karman Avenue and the Interstate 405 freeway in the City of Irvine. In 1965, the County of Orange received a dedicated easement from a private party who maintains land ownership. In 1957, the Sanitation District obtained a permanent encroachment permit with the County of Orange. RELEVANT STANDARDS • Maintain collaborative and cooperative relationships with neighboring agencies • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting • Less than 2.1 sewer spills per 100 miles PROBLEM Lane Channel has significant erosion in the vicinity of the Sanitation District's Von Karmen Trunk sewer. OCFCD is leading a project to restore and improve the condition of Lane Channel (Restoration Project) and the Sanitation District's sewer is within the restoration area. If not properly protected from heavy earth-moving equipment, OCFCD's construction activities could adversely affect the Sanitation District sewer and manholes. PROPOSED SOLUTION The Sanitation District and OCFCD are working cooperatively with urgency to restore the channel while preserving the Sanitation District's Von Karman Trunk Sewer. The Sanitation District has agreed to provide engineered drawings to OCFCD to protect the sewer that will be incorporated into OCFCD's plans and specifications. After the engineered drawings are complete, cost estimates will be used to create a reimbursement agreement between OCFCD and the Sanitation District to implement the sewer protection Page 1 of 4 as a part of OCFCD's project. The Sanitation District will bear the cost to protect its sewer. TIMING CONCERNS The Sanitation District would like Lane Channel restored as soon as possible to reduce the erosion risk to the sewer and manholes. OCFCD intends to bid the Restoration Project in late October 2017 and award the contract in February 2018. RAMIFICATIONS OF NOT TAKING ACTION Without a sewer protection plan design, the OCFCD Restoration Project will be further delayed. PRIOR COMMITTEE/BOARD ACTIONS On June 28, 2017, the Sanitation District Board of Directors approved a Sole Source Professional Design and Construction Support Services Agreement with HDR Engineering, Inc. to provide engineering services for Lane Channel Crossing Project, Project No. FE16-11, for an amount not to exceed $131,939; and a contingency of $13,194 (10%) provided that an informational item be presented to the July 2017 Operations Committee. ADDITIONAL INFORMATION In 2015, the Sanitation District became aware of erosion in Lane Channel and took steps to reduce risk for the Sanitation District in the event of further erosion prior to implementation of the OCFCD Restoration Project. As part of the Restoration Project, OCFCD will increase the level of flood protection for the residents and businesses within the flood plain by reducing or eliminating potential for personal injury and property damage due to flooding. The project goal is to improve this flood control channel reach and stop eroding sediment from the channel slopes from entering the San Diego Creek Channel. The channel has severely eroded over the years and poses a danger to adjacent office buildings, the Interstate 405 freeway, and northbound Interstate 405 at the MacArthur Boulevard off-ramp. OCFCD permitted the Sanitation District to install, operate, and maintain the Von Karman Trunk Sewer within the OCFCD's channel in 1987. As a condition of the permit, OCFCD stipulated that the Sanitation District relocate the sewer upon written notice and do so at its expense, when necessary for the construction, reconstruction, improvement, or alteration of the OCFCD's works. The sewer line is in conflict with the Restoration Project and OCFCD has requested the Sanitation District either relocate the sewer line or provide protection plans for the sewer during the Restoration Project construction. In lieu of relocating the sewer, the Sanitation District has agreed to fund the protection plan preparation and implementation. Page 2 d 4 In December 2016, OCFCD notified the Sanitation District to relocate its sewer or provide a protection plan; however, the Sanitation District could not procure an engineering consultant to prepare the protection plan to meet the OCFCD schedule. It was agreed to have the Sanitation District reimburse OCFCD for consultant services. HDR began work under contract with OCFCD in February 2017 and completed a sewer protection plan for the OCFCD Restoration Project on behalf of the Sanitation District. HDR completed the design work and incorporated OCFCD comments in March 2017. In late April 2017, OCFCD's design consultant (Geosyntec) for the Lane Channel Restoration Project required a higher level of protection for the Sanitation District sewer that required HDR to redesign the sewer protection plan. The Sanitation District, in consultation with OCFCD, decided to contract with HDR directly through a sole source contract and requested a proposal in May 2017. Review of Fee Proposal and Negotiations: A proposal was submitted by HDR on June 1, 2017 and staff negotiated to clarify the requirements of the scope of work, the assumptions used for the estimated level of effort, and the proposed approach to meet the goals and objectives for the project. Original Proposal Negotiated Work Completed to Date $35,600 $35,600 Total Hours 576 529 Total Fee $136,585 $131,939 Based on the above, staff determined that the final negotiated fee was fair and reasonable for the level of effort required for this project and recommended award of the Professional Design and Construction Support Services Agreement to HDR. The negotiated fee of $131,939 includes $35,600 for the initial design work while under contract with OCFCD, $70,604 for the remaining design work, and $25,735 for construction support services. Anticipated Future Actions When the new design is complete in July 2017, a cost estimate to protect the Von Kerman Trunk Sewer will be generated. This estimated cost will be incorporated into a reimbursement agreement with OCFCD. It is anticipated that this reimbursement agreement will be brought to the Board of Directors for approval in August 2017. Staff recommends taking this item directly to the Board of Directors in August 2017 since the Operations Committee is not scheduled to meet in August. CEQA OCFCD is the lead agency and has determined the project to be categorically exempt. Page 3 of 4 FINANCIAL CONSIDERATIONS This item has been budgeted and the budget is sufficient for the recommended action. FY Budget 2017-18, Appendix Page A-7. Date of Approval Contract Amount Contingency 06/28/2017 $131,939 $13,194 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A CD:sa:gc Page 4 of 4 OPERATIONS COMMITTEE Meeting Date To ad.of Dir. 0705,17 - AGENDA REPORT IWm Number Item Number z - Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: PLANT NO. 1 PRIMARY CLARIFIER REHABILITATION GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND The primary clarifiers are the work horse of the wastewater treatment process and are critical to our ability to meet both effluent treatment standards and provide quality water to the Orange County Water District (OCWD) for reclamation. Recently, we have experienced breakdowns impacting five of our primary clarifiers, which affects our ability to process wastewater efficiently. Due to the significant level of effort involved and time sensitivity, this work would be best handled through a contractor on an immediate basis. RELEVANT STANDARDS • 24/7/365 treatment plant reliability • Meet volume and water quality needs to support GW RS System • Maintain a proactive asset management program PROBLEM All influent wastewater must go through primary treatment. Due to recent failures of five primary clarifiers and the worsening condition of an additional five primary clarifiers at Plant No. 1, we are at risk of having to divert flow from Plant No. 1 to Plant No. 2, which would place us at a higher risk during the wet weather season, as well as reduce the amount of flow available to the Groundwater Replenishment System (GWRS). PROPOSED SOLUTION It was proposed to proceed with urgent mechanical rehabilitation and overhaul of 10 primary clarifiers at Plant No. 1 as an emergency procurement in accordance with Section 1.07B of the Purchasing Ordinance No. OCSD-47, "critical and time sensitive procurement", where time is of the essence and the Orange County Sanitation District (Sanitation District) does not have sufficient time to solicit bids or proposals. Page 1 of 2 TIMING CONCERNS This project is time sensitive due to the upcoming wet weather season, which is predicted to be an "El Nino' year, and our partnership with OCWD to produce 100 mgd of indirect potable water. This action will speed up the process by approximately four months, as opposed to the normal Request for Proposal process. This will help us to complete these activities before the wet weather season and minimize the impact to GWRS. RAMIFICATIONS OF NOT TAKING ACTION Failure to take action may impact our readiness to treat severe storm flows during the upcoming wet weather season, as well as our ability to supply the desired quantity of effluent water to the GWRS. PRIOR COMMITTEE/BOARD ACTIONS On June 28, 2017, the Board of Directors approved a Purchase Order to Frost Company for the mechanical rehabilitation and overhaul of 10 Primary Clarifiers at Plant No. 1, in accordance with Section 1.07B of the Purchasing Ordinance No. OCSD-47,for a total not to exceed $385,000, plus applicable tax; and a contingency amount of $77,000 (20%) provided that an informational item be presented to the July 2017 Operations Committee. ADDITIONAL INFORMATION Frost Company was selected to serve the urgent primary clarifier rehabilitation needs of the Sanitation District due to their qualifications and experience servicing the mechanical systems of our primary clarifiers. Frost Company has successfully demonstrated their ability to provide emergency mechanical type support to the Sanitation District, on both the primary clarifiers at Plant No. 1 and truck loading facility at Plant No. 2. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted in the Division 870 budget (Line Item: Repairs and Maintenance, Section 6, Page 92). Project contingency funds will not be used for this contract. Date of Approval Contract Amount Contingency 06/28/2017 $385,000 $77,000 (20%) 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 2 of 2