HomeMy WebLinkAbout12-05-2018 Operations Committee Meeting Agenda Packet Orange County Sanitation District Jp�1 SANir,,o Wednesday, December 5, 2018
Regular Meeting of the "a 5:00 P.M.
OPERATIONS COMMITTEE e 9 Administration Building
Board Room
10844 Ellis Avenue
9of°r"� THE EH�P 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, after one motion, without discussion. Any items withdrawn from the Consent Calendar for
separate discussion will be considered in the regular order of business.
1. APPROVAL OF MINUTES (Clerk of the Board)
RECOMMENDATION: Approve Minutes of the Regular meeting of the Operations
Committee held on November 7, 2018.
2. RELOCATION INTO 18350 MT. LANGLEY, PROJECT NO. FE18-01
(Rob Thompson)
RECOMMENDATION: Recommend to the Board of Directors to: Authorize the
General Manager to approve a purchase order with GM Business Interiors (GMBI) in
an amount not to exceed $250,000 for procurement of furniture for relocation into
18350 Mt. Langley, Project No. FE18-01.
12/05/2018 Operations Committee Agenda Page 1 of 5
3. PLANT NO. 2 DIGESTER FACILITIES REHABILITATION, PROJECT NO. P2-91-1
(Rob Thompson)
RECOMMENDATION: Approve a task order increase of $68,000 to United Riggers
and Erectors Inc. for Digester C Tent Removal, Plant No. 2, Project No. P2-91-1C, for
a total task order of $156,239.
4. HOSE REEL FRAME WITH 12-INCH LAY FLAT HOSE (Ed Torres)
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Sole Source Purchase Order to West Coast Safety Supply Co. for
1,980 feet of 12-inch lay flat sewer hose with mobile hose reel, Specification
No. E-2017-91 OBD for a total cost of $220,383; and
B. Approve a contingency of $22,038 (10%)
5. ANNUAL SEWER LINE CCTV SERVICE CONTRACT, SPECIFICATION
NO. S-2018-1001 BD (Ed Torres)
RECOMMENDATION: Recommend to the Board of Directors to:
A. Award Service Contracts to two (2) contractors: Houston & Harris PCS, Inc.
(Primary) for $352,940 and Performance Pipeline Technologies (Secondary),
for $60,000 for Annual CCTV Sewer Inspection Services, Specification No.
S-2018-1001 BD for a total amount not to exceed $412,940 for the period
beginning February 1, 2019 through January 31, 2020, with four (4) one-year
renewal options; and
B. Approve a contingency of $41,000 (10%).
6. DIGESTER CLEANING CONTRACT (Ed Torres)
RECOMMENDATION: Recommend to the Board of Directors to: Approve
Amendment No. 1 for the remaining annual renewals of the service contract with
Synagro-WWT for Digester Cleaning and Disposal, Specification No. S-2017-824BD,
which adds a provision for a per gallon unit price for processing excess sludge and
approve the excess sludge per gallon unit price of $0.13.
7. PROCURE REMOTE ACTUATORS (Ed Torres)
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a sole source purchase order to CBS Aresafe for 204 electrical power
switching actuators and associated equipment for Plant No. 1, Plant No. 2,
and 15 pump stations for a total amount not to exceed $1,001,985; and
B. Approve a contingency of $50,100 (5%).
12/05/2018 Operations Committee Agenda Page 2 of 5
8. INCREASE TO JANITORIAL AND FLOOR MAINTENANCE CONTRACT
(Ed Torres)
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve Amendment No. 1 to Service Agreement with Gamboa Services, Inc.
DBA Corporate Image Maintenance for Janitorial & Floor Maintenance Service
at Plant Nos. 1 and 2, Specification No. S-2015-730BD, for the period
February 1 , 2019 through January 31, 2020, for an amount not to exceed
$399,720, including the one (1) year renewal option; and
B. Approve an annual contingency in the amount of $39,972 (10%) aggregately
per year.
9. PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE REHABILITATION
AGREEMENT WITH DRESSER-RAND (Ed Torres)
RECOMMENDATION: Recommend to the Board of Directors to: Approve negotiated
Purchase Order Terms & Conditions with Dresser-Rand for the assessment and
standard overhaul of the Steam Turbine at Plant No. 2, in a form approved by General
Counsel.
NON-CONSENT:
10. OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117
(Rob Thompson)
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Professional Construction Services Agreement with Brown and
Caldwell to provide construction support services for Ocean Outfall System
Rehabilitation, Project No. J-117, Outfall Low Flow Pump Station, Contract
No. J-117B, for a total amount not to exceed $8,563,913; and
B. Approve a contingency of $856,391 (10%).
11. OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117
(Rob Thompson)
RECOMMENDATION: Recommend to the Board of Directors to:
A. Receive and file Bid Tabulation and Recommendation for the Outfall Low Flow
Pump Station, Contract No. J-11713;
B. Receive and file Orange County Sanitation District's Notice of Intent to Award
dated November 21, 2018;
12/05/2018 Operations Committee Agenda Page 3 of 5
C. Award a Construction Contract to Shimmick Construction Company, Inc. for
the Outfall Low Flow Pump Station, Contract No. J-117B, for a total amount not
to exceed $90,200,000; and
D. Approve a construction contract contingency of $7,216,000 (8%).
12. RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO. 2,
PROJECT NO. P2-123 (Rob Thompson)
RECOMMENDATION: Recommend to the Board of Directors to: Approve a budget
increase of $7,250,000 for Return Activated Sludge Piping Replacement at Activated
Sludge Plant No. 2, Project No. P2-123, for a total budget of $20,000,000.
13. SUNFLOWER AND RED HILL INTERCEPTOR REPAIR, PROJECT NO. 7-66
(Rob Thompson)
RECOMMENDATION: Recommend to the Board of Directors to: Establish a project
for Sunflower and Red Hill Interceptor Repair, Project No. 7-66, with a budget of
$5,500,000.
14. PLANT NO. 1 RECTANGULAR PRIMARY CLARIFIER OVERHAUL
(Ed Torres)
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Purchase Order contract to Mehta Mechanical Company Inc. for the
mechanical rehabilitation and overhaul of twenty-four (24) Primary Clarifier
tanks at Plant No. 1, per Specification No. S-2018-985BD, for a total amount
not to exceed $1,998,000; and
B. Approve a contingency of $199,800 (10%).
INFORMATION ITEMS:
15. ODOR AND CORROSION CONTROL PRESENTATION (Ed Torres)
16. HEADQUARTERS COMPLEX AD HOC COMMITTEE UPDATE
(Rob Thompson)
An update regarding the recent meetings of the Ad Hoc Committee will be presented
to the Operations Committee.
DEPARTMENT HEAD REPORTS:
CLOSED SESSION:
None.
12/05/2018 Operations Committee Agenda Page 4 of 5
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY:
ADJOURNMENT:
A Special Meeting of the Operations Committee meeting is scheduled for January 16, 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.
Agenda Posting: 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
klore@ocsd.com
For any questions on the agenda, Committee members may contact staff at:
General Manager Jim Herberg (714)593-7300 Iherberg(@ocsd.com
Assistant General Manager Rob Thompson (714)593-7310 rthompson(cDocsd.com
Assistant General Manager Lorenzo Tyner (714)593-7550 Ityner(o-)ocsd.com
Director of Operations& Ed Torres (714)593-7080 etorres(@ocsd.com
Maintenance
12/05/2018 Operations Committee Agenda Page 5 of 5
ITEM NO. 1
MINUTES OF THE
OPERATIONS COMMITTEE
Orange County Sanitation District
Wednesday, November 7, 2018, 5:00 p.m.
A regular meeting of the Operations Committee was called to order by Board
Vice-Chairman Shawver on Wednesday, November 7, 2018 at 5:04 p.m. in the
Administration Building. Director Robert Collacott led the Flag Salute.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
John Withers, Chair Jim Herberg, General Manager
Ellery Deaton, Vice-Chair Rob Thompson, Assistant General Manager
Denise Barnes Lorenzo Tyner, Assistant General Manager
Allan Bernstein Celia Chandler, Director of Human Resources
Robert Collacott Jim Colston, Director of Environmental Services
Scott Peotter Kelly Lore, Clerk of the Board
Tim Shaw Gilbert Barela
Fred Smith Bob Bell
Michelle Steel Jeff Brown
Mariellen Yarc Raul Cuellar
Greg Sebourn, Board Chair Don Cutler
David Shawver, Board Vice-Chair Mike Dorman
Damein Frabizio
COMMITTEE MEMBERS ABSENT: Dean Fisher
Phil Hawkins Alfredo Garcia
Steve Jones Rebecca Long
Kathy Millea
Jeff Mohr
Riaz Moinuddin
Adam Nazaroff
Nasrin Nasrollahi
Victoria Pilko
Tyler Ramirez
Eros Yong
OTHERS PRESENT:
Brad Hogin, General Counsel
Bob Ooten, Alternate Director (CMSD)
PUBLIC COMMENTS:
None.
REPORT OF COMMITTEE CHAIR:
Chair Withers did not provide a report.
11/07/2018 Operations Committee Minutes Page 1 of 7
REPORT OF GENERAL MANAGER:
General Manager Jim Herberg announced that OCSD Administrative offices will be
closed on Monday, November 12 in observance of Veterans Day and November 22 - 23
for the Thanksgiving holiday.
Director of Environmental Services Jim Colston provided an update on The OC Plan for
Integrated Regional Water Management and stated that the Orange County Sanitation
District, the Orange County Water District, and the County of Orange are preparing to
submit a grant application to the State Department of Water Resources to seek a fair
share of State of California Proposition 1 grant funds.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES (Clerk of the Board)
MOVED, SECONDED, and DULY CARRIED TO: Approve Minutes of the
October 3, 2018 Operations Committee Meeting.
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
2. CATERPILLAR, MODEL XQ570 TRAILER MOUNTED MOBILE DIESEL
GENERATOR (Ed Torres)
MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Approve a Purchase Order contract to Quinn Power Systems for the
purchase of a Caterpillar, Model XQ570 Trailer Mounted Mobile Diesel 500
kW Generator, (Tier-4 Final Engine), using the Sourcewell (formerly
National Joint Powers Alliance) Cooperative Contract Number #120617-
CAT with Caterpillar, for an amount not to exceed $299,920, in accordance
with Ordinance No. OCSD-52, Section 2.03(B), Cooperative Purchases;
and
B. Approve a contingency of $14,996 (5%).
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
11/07/2018 Operations Committee Minutes Page 2 of 7
3. PUMP STATIONS CRITICAL BREAKER PROCUREMENT, PROJECT NO.
MP-503 (Ed Torres)
MOVED, SECONDED, and DULY CARRIED TO:
A. Approve a Purchase Order contract to Advanced Electrical and Motor
Controls for the purchase of critical circuit breakers (quantity of 21), for ten
(10) Pump Stations per Specification No. E-2018-981, for a total amount not
to exceed $103,567; and
B. Approve a contingency of $3,106 (3%).
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
4. CITY OF SEAL BEACH ADOLFO LOPEZ PUMP STATION ODOR CONTROL
FACILITY (Ed Torres)
MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of
Directors to: Approve a Site Access and License Agreement with the City of Seal
Beach to construct an odor control chemical dosing station for the injection of
chemicals into the Knott Interceptor at 1776 Adolfo Lopez Drive, in a form
approved by General Counsel.
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
5. SOUTHERN CALIFORNIA EDISON - AMENDMENT NO. 3 TO THE
AS-AVAILABLE CAPACITY AND ENERGY POWER PURCHASE AGREEMENT
(Ed Torres)
MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of
Directors to:
Approve Amendment No. 3 to the As-Available Capacity and Energy Power
Purchase Agreement with Southern California Edison Company, to allow the
Orange County Sanitation District to receive monthly sale statements from
Southern California Edison Company through the electronic mail system.
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shawver, F. Smith, Withers, and Yarc
NOES: None
ABSTENTIONS: None
11/07/2018 Operations Committee Minutes Page 3 of 7
ABSENT: Hawkins, S. Jones, Shaw (Non-participant Levine Act
Disclosure), and Steel (Non-participant Levine Act
Disclosure)
Item pulled and heard separately.
6. CLIMATE RESILIENCY STUDY - PROJECT NO. SP-152 (Rob Thompson)
MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Approve a budget increase of $288,000 for the Climate Resiliency Study,
Project No. SP-152, for a total budget of $878,000;
B. Approve a Professional Services Agreement with Hazen and Sawyer to
provide engineering services for the Climate Resiliency Study, Project No.
SP-152, for an amount not to exceed $697,952; and
C. Approve a contingency of $69,795 (10%).
AYES: Barnes, Bernstein, Collacott, Deaton, Sebourn, Shaw,
Shawver, F. Smith, Steel, Withers, and Yarc
NOES: Peotter
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
7. QUARTERLY ODOR COMPLAINT REPORT (Ed Torres)
MOVED, SECONDED, and DULY CARRIED TO: Receive and file the Fiscal Year
2018/19 First Quarter Odor Complaint Summary.
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
8. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT
(Rob Thompson)
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 September 30, 2018.
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
11/07/2018 Operations Committee Minutes Page 4 of 7
9. SAFETY IMPROVEMENTS PROGRAM, PROJECT NO. J-126
(Rob Thompson)
MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Receive and file Bid Tabulation and Recommendation for Tharsos, Inc. for
Safety Improvements Program: Roof Fall Protection and Walkway Hazards
at Plant Nos. 1 and 2, and Safety Improvements at SARI Metering Station,
College Avenue, Lido, Main Street, `A' Street, 15t" Street, Rocky Point and
Crystal Cove Pump Stations, Contract No. J-126PQ;
B. Award a Construction Contract to Tharsos, Inc. for the Safety Improvements
Program: Roof Fall Protection and Walkway Hazards at Plant Nos. 1 and
2, and Safety Improvements at SARI Metering Station, College Avenue,
Lido, Main Street, 'A' Street, 15t" Street, Rocky Point and Crystal Cove
Pump Stations, Contract No. J-126PQ, for a total amount not to exceed
$786,000; and
C. Approve a contingency of $78,600 (10%).
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
NON-CONSENT:
10. CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT
NO. 2, PROJECT NO. P2-110 (Rob Thompson)
Engineering Manager Dean Fisher provided an informative PowerPoint
presentation regarding the unknown conditions and construction challenges of the
project requiring the contingency increase.
MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of
Directors to: Approve a contingency increase of$836,500 (5%)to the construction
contract with Flatiron West, Inc. for Consolidated Demolition and Utility
Improvements at Plant No. 2, Project No. P2-110, for a total contingency of
$2,174,900 (13%).
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
11/07/2018 Operations Committee Minutes Page 5 of 7
11. TRUCK LOADING BAY ODOR CONTROL AT PLANT NO. 2, CONTRACT
NO. P2-92A (Rob Thompson)
Engineering Manager Dean Fisher provided a PowerPoint presentation which
described the project objectives and construction challenges. He stated that the
project is 81% complete.
MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of
Directors to: Approve a contingency increase of$132,160 (4%)to the construction
contract with Kiewit Infrastructure West Co. for Truck Loading Bay Odor Control at
Plant No. 2, Contract No. P2-92A, for a total construction contingency of$462,560
(14%).
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
12. AGREEMENT FOR THE PURCHASE OF LIQUID CATIONIC POLYMER
CHEMICAL (Ed Torres)
Assistant General Manager Rob Thompson provided a brief introduction to and
additional information regarding the requested agreement.
MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Approve a Sole Source Chemical Supplier Agreement to SNF Polydyne,
Inc., for the purchase of Liquid Cationic Polymer, for the period beginning
February 1, 2019 through January 31, 2020 for a unit price of $2.782 per
active pound delivered for Solution Polymer (WE-192) including freight plus
applicable sales tax, and $2.552 per active pound delivered for Mannich
Polymer (C-331) including freight plus applicable sales tax, and $2.947 per
active pound delivered for Emulsion Polymer (WE-1328) including freight
plus applicable sales tax, and $2.947 per active pound delivered for
Emulsion Polymer (WE-1233; full liquid) including freight plus applicable
sales tax, and $3.265 per active pound delivered for Emulsion Polymer
(WE-1233; <40k lb.) including freight plus applicable sales tax, for total
estimated annual amount of $608,000;
B. Authorize General Manager to negotiate and subsequently approve new
unit prices with an estimated additional amount of $2,302,000 with SNF
Polydyne, Inc. for new cationic polymers that will be developed based on
cationic polymer specifications for the new centrifuges for the period
February 1, 2019 through January 31, 2020, not to exceed amount
estimated $2,910,000; and
C. Approve an annual unit price contingency of 10% for item B.
11/07/2018 Operations Committee Minutes Page 6 of 7
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
INFORMATION ITEMS:
13. ORANGE COUNTY SANITATION DISTRICT RESEARCH PROGRAM
(Rob Thompson)
Mr. Thompson introduced Senior Engineer Jeff Brown who provided a PowerPoint
presentation regarding the District's Research program including: types of
research; participation with other organizations, notable successes, current
projects examples; iTAG group and research budgeting. Mr. Thompson and
Mr. Brown responded to questions from the Committee.
Director Steel departed the meeting at 5:41 p.m.
DEPARTMENT HEAD REPORTS:
None.
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
None.
ADJOURNMENT
Chair Withers declared the meeting adjourned at 5:52 p.m. to the next meeting of
Wednesday, December 5, 2018 at 5:00 p.m.
Submitted by,
Kelly A. Lore, MMC
Clerk of the Board
11/07/2018 Operations Committee Minutes Page 7 of 7
OPERATIONS COMMITTEE Meeting Date To Dir.
12/05/18 12/2/19/18
AGENDA REPORT Item Number Item Number
2
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: RELOCATION INTO 18350 MT. LANGLEY, PROJECT NO. FE18-01
GENERAL MANAGER'S RECOMMENDATION
Authorize the General Manager to approve a purchase order with GM Business Interiors
(GMBI) in an amount not to exceed $250,000 for procurement of furniture for relocation
into 18350 Mt. Langley, Project No. FE18-01.
BACKGROUND
The Orange County Sanitation District (Sanitation District) purchased the building located
at 18350 Mt. Langley Street in preparation for the upcoming Headquarters Complex. Due
to the upcoming work at the Plant No. 1 Headworks, two staff trailers are being
demolished. There was a planning study to review the personnel relocation requirements
to accommodate the demolition of these two trailers, and the conclusion was to relocate
staff to the Mt. Langley building until the proposed new Headquarters Building on the
north side of Ellis Avenue is complete.
There is sufficient recently-vacated office space within the Mt. Langley building for 37 staff
members of the Resource Protection Division that are currently located in two separate
buildings, allowing the entire division to be together.
To avoid potential delays, staff is proposing not to reconfigure the existing suites at this
time. Reconfiguring walls and doors would require more time for design, permitting, and
construction.
RELEVANT STANDARDS
• Provide a safe and collegial workplace
• Ensure the public's money is wisely spent
PROBLEM
The vacant suites in the Mt. Langley building do not have furniture. The furniture that is
currently used by the Resource Protection Division will be needed for the staff moving
into their vacated spaces. In addition, reconfiguring existing furniture into the new spaces
is not cost effective.
Page 1 of 3
PROPOSED SOLUTION
Award a purchase order with GMBI for procurement of furniture for relocation into 18350
Mt. Langley, Project No. FE18-01.
TIMING CONCERNS
The schedule for the phased relocation requires that staff move into the 18350 Mt.
Langley building in April 2019. Due to the furniture manufacture and installation time, the
purchase order needs to be issued by early January to meet this deadline. The final
proposal, including final costs, will not be available in time for the December Operations
Committee to recommend approval at the December Board Meeting.
RAMIFICATIONS OF NOT TAKING ACTION
Project No. P1-105 may be delayed since the trailers cannot be demolished.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
The Sanitation District is a member of a national cooperative purchasing program, U.S.
Communities, which allows the Sanitation District to use the competitive solicitation
process from another public agency to request a proposal from a single manufacturer.
There are three furniture manufacturers included in the U.S. Communities program. In
order to select a manufacturer, a selection team was created which reviewed each
manufacturer in terms of quality, configurability, economics, warranty, and price. The
selection team visited the showrooms of each of the three manufacturers and had a
questionnaire for the visits. After the showroom visits, the manufacturers were asked to
provide example pricing from their local dealers on a generic layout for the space. The
responses to the questionnaire and the pricing were then scored, and a reference cost
was developed using the dealer's pricing with the U.S. Communities discounts applied.
The results are shown below.
Manufacturer Score Reference Cost
Herman Miller 58 $198,000
Hayworth 51 $206,000
Knoll 50 $232,000
Herman Miller had the highest score and the lowest reference cost. The Sanitation
District has requested a detailed proposal, including a detailed layout for the space, from
the local Herman-Miller Dealer, GMBI. Staff will review the detailed proposal and
recommend a purchase order for the General Manager's approval.
Page 2 of 3
CEQA
N/A
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, and the budget is sufficient for the
recommended action.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
N/A
VR:dm:gc
Page 3 of 3
OPERATIONS COMMITTEE Meeting Date To Bd. of Dir.
12/05/18 --
AGENDA REPORT Item Number Item Number
3 --
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: PLANT NO. 2 DIGESTER FACILITIES REHABILITATION,
PROJECT NO. P2-91-1
GENERAL MANAGER'S RECOMMENDATION
Approve a task order increase of $68,000 to United Riggers and Erectors Inc. for
Digester C Tent Removal, Plant No. 2, Project No. P2-91-1 C, for a total task order of
$156,239.
BACKGROUND
The digesters at Plant No. 2 were built by multiple projects between 1959 and 1979. Plant
No. 2 Digester Facilities Rehabilitation, Project No. P2-91-1, is tasked with rehabilitating
these digesters until additional solids processing facilities are constructed by upcoming
projects.
Ordinance No. OCSD-52, approved in May 2018, authorizes the award of master
contracts to pre-qualified firms for maintenance and repair services less than $300,000.
Bids are requested from each of the seven firms issued these master contracts, and a
task order approved by the General Manager is awarded to the firm with the lowest bid.
Ordinance No. OCSD-52 replaced Ordinance No. OCSD-47, which authorized task
orders only to $100,000.
Multiple construction task orders have been awarded by this project for specific repairs
on individual digesters as they become available during the regularly scheduled cleaning
process. Construction Task Order No. P2-91-1 C to rehabilitate Digester C was awarded
to United Riggers and Erectors Inc. (Contractor) on March 5, 2018 for $88,239. At that
time, the task order limit was $100,000.
After the work was completed, the Contractor requested compensation for extra costs
required for removal of unanticipated material found behind the digester liner. The costs
incurred were reasonable and justified.; however, to avoid delaying the work, the
Contractor did not notify staff before incurring the additional costs.
The Contractor and Orange County Sanitation District (Sanitation District) staff have a
tentative agreement for an additional $68,000 for all cost impacts, but this would increase
the total amount above the $100,000 General Manager's task order authorization in effect
at the time the task order was awarded.
Page 1 of 3
RELEVANT STANDARDS
• Protect Orange County Sanitation District assets
• 24/7/365 treatment plant reliability
PROBLEM
The Contractor encountered unknown conditions due to unanticipated material
encountered behind the digester liner which has resulted in additional cost impacts, and
the General Manager's approval limits for this type of repair work of $100,000 is
insufficient to authorize a tentative settlement agreement.
PROPOSED SOLUTION
Approve an increased task order amount of $156,239 for Digester C Tent Removal,
Project No. P2-91-1 C.
TIMING CONCERNS
Final construction was completed in July 2018.
RAMIFICATIONS OF NOT TAKING ACTION
If the request for approval for the final task order amount is not approved, the tentative
negotiated settlement amount will not be paid and the Contractor may revert to legal
action against the Sanitation District. The Contractor's initial request was in the amount
of $138,167.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
Construction was completed in July 2018. The Contractor proceeded with changes to the
scaffolding and removal methods without notifying the Sanitation District of their intent to
submit a Request for Change at the end the project. Sanitation District staff monitored
the means and methods chosen by the Contractor and agrees that the labor, equipment,
and materials in the tentative settlement are reasonable for the effort spent by the
Contractor due to the unknown conditions.
CEQA
The project is exempt from CEQA under the Class 1 categorical exemptions set forth in
CEQA Guidelines (14 California Code of Regulations) sections 15301. Section 15301
(Class 1) exempts from CEQA projects involving "the operation, repair, maintenance,
leasing, licensing, or minor alteration of existing public or private structures, facilities,
Page 2 of 3
mechanical equipment, or topographical features, involving negligible or no expansion of
use beyond that existing at the time of the lead agency's determination." This exemption
includes, but is not limited to, projects involving "[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.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the FY 2018-19 and 2019-20 budget,
(Section 8, page 77), and the budget is sufficient for the action.
Date of Approval Contract Amount Contingency
03/05/2018 $ 88,239 N/A
12/19/2018 68,000 N/A
$156,239
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
N/A
RL:dm:gc
Page 3 of 3
OPERATIONS COMMITTEE Meeting Date To Dir.
12/05/18 12/2/19/18
AGENDA REPORT Item Number Item Number
4
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: HOSE REEL FRAME WITH 12-INCH LAY FLAT HOSE
GENERAL MANAGER'S RECOMMENDATION
A. Approve a Sole Source Purchase Order to West Coast Safety Supply Co. for 1,980
feet of 12-inch lay flat sewer hose with mobile hose reel, Specification
No. E-2017-91 OBD for a total cost of $220,383; and
B. Approve a contingency of $22,038 (10%).
BACKGROUND
Bypass pumping is used in both emergency situations and in planned maintenance
activities to redirect flow past a pump station or portion of pipeline. In the event of an
emergency, the Orange County Sanitation District (Sanitation District) has two (2) options
for bypass pumping: rent equipment or deploy equipment acquired for such purposes.
To increase in-house capability for first-response bypass pumping, staff initiated a
two-year plan to purchase three (3) large portable pumps and 4,620 feet of 12-inch lay-
flat hose with mobile hose reels and trailers. With this equipment, staff would be able to
bypass pump all of the Sanitation District's regional sewers and 12 of the 15 pump
stations, increasing self-sufficiency and helping to avoid or reduce the impact of spills and
compliance violations within the collection system. Three large portable pumps, 2,640
feet of 12-inch lay flat hose, and one hose reel and trailer have already been purchased
under Board authority.
RELEVANT STANDARDS
• Achieve less than 2.1 sewer spills per 100 miles
• Protect Orange County Sanitation District assets
• Meet or exceed sanitary sewer overflow regulations
PROBLEM
Emergency bypass pumping depends on the timely availability of specialty equipment.
Reliance on third-party vendors for this equipment could result in larger sewer spills and
significant compliance violations.
Page 1 of 3
PROPOSED SOLUTION
Staff recommends awarding a sole source purchase order to West Coast Safety Supply
Co. for 1,980 feet of 12-inch lay flat sewer hose with mobile hose reel.
TIMING CONCERNS
This purchase should be made prior to the start of the wet weather season to reduce the
impact of spills and compliance violations should a sanitary sewer overflow occur.
RAMIFICATIONS OF NOT TAKING ACTION
Rental equipment takes time to secure, increasing the chance of a sewer spill. By owning
the necessary equipment for bypass pumping, staff can respond quickly and efficiently to
emergency situations. This equipment can also be used for planned maintenance
activities or capital improvement efforts that require bypass pumping.
PRIOR COMMITTEE/BOARD ACTIONS
February 2018 - Approved purchase of 2,640 feet of 12-inch lay flat hose with mobile
hose reel trailer in the amount of $295,704 with a contingency of $29,570 (10%).
ADDITIONAL INFORMATION
During FY17-18, a trailer, hose reel and 2,640 feet of 12-inch lay flat hose was purchased
via a competitive bid. Two quotes were received and West Coast Safety Supply was
found to be the lowest responsive and responsible bidder.
A sole source purchase for the second hose reel assembly will ensure compatibility with
the hose reel and trailer system purchased in FY17-18. This strategy will result in an
estimated savings of $98,000, as a second trailer will not be needed.
With the purchase of a second mobile hose reel assembly from West Coast Safety Supply
Co., staff will have two (2) sets of pumps and hose reel assemblies and one (1) hose reel
trailer. This will allow the Sanitation District to conduct bypass pumping activities
efficiently and effectively at all but the three (3) largest pump stations. Ownership of this
critical equipment will improve staff's ability to lessen the harmful impacts to public health
and the environment that could be caused by a sewer spill.
A 10% contingency is recommended to protect against any variance in pricing or shipping
fees that may occur between the date of the quote and the date of purchase. The
Sanitation District has experienced unstable, usually increasing, prices due to the
changing "tariff" on imported goods.
CEQA
N/A
Page 2 of 3
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the Fiscal Year 2018-19 Capital Equipment
Budget budget, Div 822 (Line item 9, Section 8, Page 96) and the budget is sufficient for
the recommended action.
Date of Approval Contract Amount Contingency
12/19/2018 $220,383 $22,038 (10%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
N/A
ET:ME:RB:CL:sr
Page 3 of 3
OPERATIONS COMMITTEE Meeting Date To Dir.
12/05/18 12/2/19/18
AGENDA REPORT Item Number Item Number
5
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: ANNUAL SEWER LINE CCTV SERVICE CONTRACT,
SPECIFICATION NO. S-2018-1001 BD
GENERAL MANAGER'S RECOMMENDATION
A. Award Service Contracts to two (2) contractors: Houston & Harris PCS, Inc.
(Primary) for $352,940 and Performance Pipeline Technologies (Secondary) for
$60,000 for Annual CCTV Sewer Inspection Services, Specification
No. S-2018-1001 BD for a total amount not to exceed $412,940 for the period
beginning February 1, 2019 through January 31, 2020, with four (4) one-year
renewal options; and
B. Approve a contingency of $41,000 (10%).
BACKGROUND
Sewer inspection and condition assessment is one of the major preventive maintenance
tasks listed in the Orange County Sanitation District's (Sanitation District) Sewer System
Management Plan (SSMP) approved by the Regional Water Quality Control Board. The
Sanitation District has committed to inspecting the entire sewer system every five (5)
years per the National Association of Sewer Service Companies (NASSCO) guidelines
and definitions. Review of closed-circuit television (CCTV) data on a regular basis
reduces the potential for catastrophic pipeline failures. The CCTV data is also essential
for ensuring the best use of Sanitation District funds because it allows staff to prioritize
the most degraded pipelines for the cleaning and repair.
RELEVANT STANDARDS
• Maintain and adhere to the Sewer System Management Plan
• Protect Orange County Sanitation District assets
• Achieve less than 2.1 sewer spills per 100 miles
• Operate and maintain facilities to minimize impacts on surrounding communities,
including odor, noise, and lighting
PROBLEM
The current CCTV contract will expire on January 31, 2019. Without a new contract in
place the CCTV portion of the SSMP will fall behind.
Page 1 of 3
PROPOSED SOLUTION
Award new CCTV contracts to the two lowest bidders with the intention of using the
primary contractor for most, if not all, CCTV work and using the secondary contractor
when the primary is not available or cannot respond in a timely manner.
TIMING CONCERNS
A new contract must be in place by January 2019 to avoid program disruptions.
RAMIFICATIONS OF NOT TAKING ACTION
The Sanitation District will fall behind schedule if the CCTV contract expires. If the
contract is not awarded, the Sanitation District will eventually be out of compliance with
the SSMP. Non-compliance may lead to violations and fines. Also, not staying abreast
of sewer condition could lead to major pipe failures.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
A Notice Inviting Bids for CCTV Sewer Inspection Services was issued. Nine bids were
received. The two lowest responsive and responsible bidders are, Houston & Harris PCS,
Inc. and Performance Pipeline & Technologies.
BID TABULATION:
Company Name Bid
Houston & Harris PCS, Inc. $352,940
Performance Pipeline & Technologies $374,290
Nor-Cal Pipeline Services $410,350
Hoffman Southwest Corp. $469,450
Downstream Services, Inc. $640,770
National Plant Services, Inc. $675,850
Innerline Engineering, Inc. $706,850
Taplin Group, LLC $1,603,135
Pipe & Plant Solutions, Inc. $1,824,225
CEQA
N/A
Page 2 of 3
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the Fiscal Years 2018-19 and 2019-20
budget, Div. 820 (Line item Professional and Contractual Services, Section 6, Page 76)
and the budget is sufficient for the recommended action.
Date of Approval Contract Amount Contingency
12/19/2018 $412,940 $41,000 (10%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
• Service Contract
Page 3 of 3
SERVICE CONTRACT
Sewerline CCTV Inspection Services
Specification No. S-2018-1001 BD
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 with a
principal place of business at (hereinafter referred to as "Contractor")
collectively referred to as the "Parties".
WITNESSETH
WHEREAS, OCSD desires to temporarily retain the services of Contractor for Sewerline CCTV
Inspection Services "Services" as described in Exhibit "A"; and
WHEREAS, OCSD has chosen Contractor to conduct Services in accordance with Ordinance No.
OCSD-52; and
WHEREAS, on the Board of Directors of OCSD, by minute order,
authorized execution of this Contract between OCSD and Contractor; and
WHEREAS, Contractor is qualified by virtue of 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
Exhibit "E" Not Used
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.
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.
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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 premiums and/or overtime work at no
charge beyond the price provided under"Compensation" below.
1.10 Except as expressly provided otherwise, OCSD accepts no liability for any expenses,
losses, or action incurred or undertaken by Contractor as a result of work performed in
anticipation of purchases of said services by OCSD.
2. Compensation Compensation to be paid by OCSD to Contractor for the Services provided
under this Contract shall be a total amount not exceed Dollars
($ .00).
3. California Department of Industrial Relations (DIR) Registration and Record of Wages
3.1 To the extent Contractor's employees and/or its subcontractors who will perform Work under
this Contract for which Prevailing Wage Determinations have been issued by the DIR and
as more specifically defined under Labor Code Section 1720 et 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 Services completed in accordance
with Exhibit "A". OCSD, at its sole discretion, shall be the determining party as to whether
the Services have been satisfactorily completed.
4.2 Invoices shall be emailed by Contractor to OCSD Accounts Payable at
APStaff(a)OCSD.com and "INVOICE" with the Purchase Order Number and Specification
No. S-2018-1001 BD shall be referenced in the subject line.
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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. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Services
identified in Exhibit "A". Contractor shall perform said Services in accordance with generally
accepted industry and professional standards.
7. Modifications to Scope of Work Requests for modifications to the Scope of Work
hereunder can be made by OCSD at any time. All modifications must be made in writing
and signed by both Parties.
8. Contract Term The Services provided under this Contract shall be for the period of one 1
year commencing on February 1, 2019 and continuing through January 31, 2020.
9. Renewals
9.1 OCSD may exercise the option to renew this Contract for up to four (4) one-year periods
based upon the criteria set forth in Exhibit "A", under the terms and conditions contained
herein. OCSD shall make no obligation to renew nor give reason if it elects not to renew.
9.2 This Contract may be renewed by OCSD Purchase Order.
10. Extensions The term of this Contract may be extended only by written instrument signed
by both Parties.
11. Performance Time is of the essence in the performance of the provisions hereof.
12. Termination
12.1 OCSD reserves the right to terminate this Contract for its convenience, with or without
cause, in whole or in part, 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.
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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.
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. Indemnification and Hold Harmless Provision 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 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.
15. 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 Safety 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 of its employees and
subcontractors, shall adhere to all applicable OCSD Safety Standards attached hereto in
Exhibit "U.
16. Warranties In addition to the warranties stated in Exhibit "A", the following shall apply:
16.1 Manufacturer's standard warranty shall apply. All manufacturer warranties shall commence
on the date of acceptance by the OCSD Project Manager or designee of the work as
complete.
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16.2 Contractor's Warranty (Guarantee): If within a one (1) year period of completion of all work
as specified 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.
17. 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.
18. Frei_ght (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.
19. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it
understands the work to be performed; and 2) 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.
20. Re_gulatory 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.
21. Licenses, Permits, Ordinances and Re_gulations Contractor represents and warrants to
OCSD that it has obtained all licenses, permits, qualifications, and approvals of whatever
nature that are legally required to engage in this work. Any and all fees required by Federal,
State, County, City and/or municipal laws, codes and/or tariffs that pertain to the work
performed under the terms of this Contract will be paid by Contractor.
22. Applicable Laws and Re_gulations Contractor shall comply with all applicable Federal,
State, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold
harmless from any and all damages and liabilities assessed against OCSD as a result of
Contractor's noncompliance therewith. Any permission required by law to be included
herein shall be deemed included as a part of this Contract whether or not specifically
referenced.
23. Contractor's Employees Compensation
23.1 Davis-Bacon Act—If applicable, 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.
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23.2 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 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 project site, which shall be made available to any interested party upon request.
23.3 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.
23.4 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 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.
23.5 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 et 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 (1) calendar day and forty (40) hours in any one (1) 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.
23.6 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 per the requirements of Section 1776.
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24. South Coast 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.
25. Governin_g 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.
26. 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.
27. Remedies In addition to other remedies available in law or 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
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.
28. Dispute Resolution
28.1 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 similar organization or entity conducting an
alternate dispute resolution process.
28.2 In the event the Parties are unable to timely resolve 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 may be conducted in connection with
the arbitration proceeding pursuant to California Code of Civil Procedure 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. The 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.
Orange County Sanitation District 7 of 9 Specification No. S-2018-10018D
Version 032018
29. Attorney'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.
30. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity, and
Forum for Enforcement, shall survive termination or expiration of this Contract.
31. 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.
32. Dama_ge 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.
33. Disclosure Contractor agrees not to disclose, to any third party, data or information
generated from this project without the prior written consent from OCSD.
34. 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,
employees, or agents. Contractor and its officers, employees, and agents shall obtain no
rights to any benefits which accrue to OCSD's employees.
35. 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.
36. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits
to anyone other than OCSD and Contractor.
37. 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 become due to Contractor or to its
successor, or for breach of any obligation for the terms of this Contract.
38. Read and Understood By signing this Contract, Contractor represents that he has read
and understood the terms and conditions of the Contract.
39. Authority to Execute The persons executing this Contract on behalf of the Parties warrant
that they are duly authorized to execute this Contract and that by executing this Contract,
the Parties are formally bound.
40. Entire Contract This Contract constitutes the entire agreement of the Parties and
supersedes all prior written or oral and all contemporaneous oral agreements,
understandings, and negotiations between the Parties with respect to the subject matter
hereof.
Orange County Sanitation District 8 of 9 Specification No. S-2018-10018D
Version 032018
41. 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: Jackie Lagade
Buyer
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708
Contractor: Contact Name
Contact Title
Company Name
Street Address
City, State, Zip Code
Each party shall provide the other party written notice of any change 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.
ORANGE COUNTY SANITATION DISTRICT
Dated: By:
David John Shawver
Board Chairman
Dated: By:
Clerk of the Board
Dated: By:
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 9 of 9 Specification No. S-2018-10018D
Version 032018
OPERATIONS COMMITTEE Meeting Date To Dir.
12/05/18 12/2/19/18
AGENDA REPORT Item Number Item Number
6
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: DIGESTER CLEANING CONTRACT
GENERAL MANAGER'S RECOMMENDATION
Approve Amendment No. 1 for the remaining annual renewals of the service contract with
Synagro-WWT for Digester Cleaning and Disposal, Specification No. S-2017-82413D,
which adds a provision for a per gallon unit price for processing excess sludge and
approve the excess sludge per gallon unit price of $0.13.
BACKGROUND
Under the current contract terms, the digester cleaning service provider (Synagro-WWT)
is paid for digester cleaning based upon the dry tons of solids removed. Also, prior to
handing over the digester to the service provider for cleaning, Orange County Sanitation
District (Sanitation District) is expected to remove the liquid sludge from the digester to
the maximum extent feasible.
In cases where the Sanitation District is unable to remove the excess sludge to the
maximum extent feasible, a new payment line item provision is required to compensate
the service provider for the volume of excess liquid sludge they must remove.
RELEVANT STANDARDS
• Maintain a culture of improving efficiency to reduce the cost to provide the
current service level or standard
• Commitment to safety & reducing risk in all operations
• Protect Orange County Sanitation District assets
PROBLEM
The contract payment line items do not currently include a provision to cover contractor
costs associated with processing liquid sludge which is the Sanitation District's
responsibility under the contract terms.
PROPOSED SOLUTION
A new equitable cost per gallon sludge volume processed payment line item would allow
for compensation to the contractor for processing the excess sludge volume.
Page 1 of 2
TIMING CONCERNS
Staff would like to see this new contract provision incorporated into the upcoming renewal
period which begins March 1, 2019.
RAMIFICATIONS OF NOT TAKING ACTION
In situations where the Sanitation District staff is not able to remove excess sludge prior
to handing over the digester for cleaning to the service provider, the digester cleaning
operations may have to be suspended until all liquid sludge that can be feasibly removed
by the Sanitation District is removed. This would disrupt the digester cleaning schedule
and subject the Sanitation District to standby and/or mobilization-demobilization costs of
up to $85,000 per event to the contractor.
PRIOR COMMITTEE/BOARD ACTIONS
July 2017 - Approved a Service Agreement with Synagro-WWT, the lowest responsive
and responsible bidder, for Digester Cleaning and Disposal, Specification
No. S-2017-82413D, for an eighteen-month period beginning September 1, 2017 through
February 28, 2019, for an amount not to exceed $3,953,958, with four (4) additional
18-month renewal options; and a contingency of$395,396 (10%)aggregately per contract
period.
ADDITIONAL INFORMATION
Periodic digester cleaning removes material build-up which limits process capacity and
provides an opportunity to assess the structural and mechanical conditions of the
digesters. Digester cleaning is an essential element of the Sanitation District's asset
management and process optimization strategy.
This amendment does not change the previously authorized total amount of the contract.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the Fiscal Years 2018-19 and 2019-20
Operating Budget (Line item: Repairs and Maintenance, Section 6, Pages 92 and 100)
and the budget is sufficient for the recommended action.
Date of Approval Contract Amount Contingency
12/19/2018 $ 0.13/Gal
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
• Draft Amendment No. 1
Page 2 of 2
AMENDMENT NO. 1
To Service Agreement
Digester Cleaning Services
Specification No. S-2017-824BD
THIS AMENDMENT TO THE AGREEMENT is made and entered into, to be effective March 1,
2019, by and between Orange County Sanitation District hereinafter referred to as "OCSD" and Synagro-
WWT, Inc. (hereinafter referred to as "Service Provider") collectively referred to as the "Parties".
WHEREAS, on July 26, 2017, the Board of Directors of OCSD, by minute order, authorized
execution of this Agreement and Service Provider with the term of the Agreement starting on September
1, 2017, ("the Agreement"); and
WHEREAS, the Parties wish to amend the Agreement to make certain modifications which shall be
called Amendment No. 1 ("Amendment"); and
WHEREAS, the Parties to the Agreement desire that this Amendment be incorporated into the
Agreement and become a part thereof effective March 1, 2019; and
WHEREAS, the Parties desire that the Agreement as modified by this Amendment No. 1 shall
constitute the sole and entire Agreement among the Parties;
NOW, THEREFORE, in consideration of these premises and the mutual covenants contained
herein, the Parties agree to amend the Agreement to:
1. Exercise the renewal of this Agreement for the period March 1, 2019 through August 31, 2020.
2. Adds a unit price of $0.13 per gallon for the processing of excess sludge to Exhibit B — Bid From
Service Provider.
Except as expressly amended above, the Agreement will remain unchanged and in full force
and effect.
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this
Amendment No. 1 to be signed by the duly authorized representatives as of the day and year last signed
below.
Orange County Sanitation District Synagro-WWT, Inc.
By:
Contracts, Purchasing and Date Date
Materials Management Manager
Name:
David John Shawver, Date
Board Chairman
Title:
Clerk of the Board Date
Amendment No. 1 Specification No. S-2017-824BD
032018
OPERATIONS COMMITTEE Meeting Date To Dir.
12/05/18 12/2/19/18
AGENDA REPORT Item Number Item Number
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: PROCURE REMOTE ACTUATORS
GENERAL MANAGER'S RECOMMENDATION
A. Approve a sole source purchase order to CBS Aresafe for 204 electrical power
switching actuators and associated equipment for Plant No. 1 , Plant No. 2, and 15
pump stations for a total amount not to exceed $1,001,985; and
B. Approve a contingency of $50,100 (5%).
BACKGROUND
The Orange County Sanitation District's (Sanitation District) Plant No. 1 , Plant No. 2, and
outlying pump stations operate 239 Motor Control Centers (MCCs) and switchgears that
are used to distribute electricity from the Central Power Generation System and Southern
California Edison (SCE) to plant and pump station equipment. The release of the incident
energy thrown as an arc flash/blast is a potential issue when working around this electrical
equipment. Staff utilizes Personal Protective Equipment (PPE) to minimize the harm if
subject to an arc flash/blast exposure.
RELEVANT STANDARDS
• Maintain a culture of improving efficiency to reduce the cost to provide the current
service level or standard
• Provide a safe and collegial work place
PROBLEM
The Sanitation District staff evaluated existing MCCs and switchgears based on the
recently updated National Fire Protection Association (NFPA) Standard 70E, Standard
for Electrical Safety in Workplace and determined that the electrical equipment has the
potential to release arc flash energy and cause harm to operations and maintenance staff
working with the equipment even while donning PPE, as well as people passing near the
equipment if it were to activate.
PROPOSED SOLUTION
Staff recommends procuring remote actuators and operators for the 239 MCCs and
switchgears. Implementing this administrative and engineering control could improve
Page 1 of 3
employee safety by providing a safe distance between electrical equipment and the
individual operating the equipment, thereby minimizing potential arc flash hazards.
RAMIFICATIONS OF NOT TAKING ACTION
Staff will still meet NFPA 70E requirements for PPE using arc flash suits. However, even
with the arc flash suits, injuries to employees are likely to occur.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
In December 2017, a request for information (RFI) document, along with technical
specifications, was prepared and advertised for responses from potential vendors. The
Sanitation District did not receive any response to this RFI.
As a follow up to the RFI and during the RFI process, staff contacted firms well known in
the industry such as CBS Aresafe, Graybar, and Martek to find out if they could furnish
these units. Graybar and Martek expressed their inability to furnish all the units listed in
the RFI. Even though CBS Aresafe provided their response to the RFI after the deadline,
they confirmed with staff that they were well qualified to furnish the remote switching units,
and that it was an oversight on their part that led to them not responding to the RFI within
the specified deadline. CBS ArcSafe also sent their representative to the Sanitation
District to meet with staff, participated in a job walk, provided cost proposals, and
expressed their readiness and consent to provide the remote switching units
The Sanitation District staff reviewed CBS Aresafe's response to the RFI and has
determined that CBS Aresafe is the only acceptable vendor for this procurement for the
following reasons:
1. CBS Aresafe provides remote switching solutions for all the types and manufacturers
of MCCs and switchgears operated by the Sanitation District. Other companies do
not provide switching solutions for all types of MCCs and switchgears used by the
Sanitation District.
2. CBS Aresafe is the only vendor who can fabricate custom units for unique switching
units as required by some MCCs and switch gears at the Sanitation District. Unique
switching operations include push buttons, levers, rotary/pistol grip switches, and
handles requiring single or multiple strokes.
3. CBS Aresafe was the only vendor who sent their representative to inspect the
Sanitation District's electrical equipment and confirmed that they could furnish the
remote switching units.
CEQA
N/A
Page 2 of 3
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the Fiscal Year 2018-19 budget, Div. 880,
Plant No. 2 Maintenance, (Line Item: Repairs and Maintenance, Section 6 page 100) and
the budget is sufficient for the recommended action.
Date of Approval Contract Amount Contingency
12/19/2018 $1,001,985 $50,100 (5%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
N/A
Page 3 of 3
OPERATIONS COMMITTEE Meeting Date To Dir.
12/05/18 12/2/19/18
AGENDA REPORT Item Number Item Number
s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: INCREASE TO JANITORIAL AND FLOOR MAINTENANCE CONTRACT
GENERAL MANAGER'S RECOMMENDATION
A. Approve Amendment No. 1 to Service Agreement with Gamboa Services, Inc.
DBA Corporate Image Maintenance for Janitorial & Floor Maintenance Service at
Plant Nos. 1 and 2, Specification No. S-2015-73013D, for the period
February 1 , 2019 through January 31, 2020, for an amount not to exceed
$399,720, including the one (1) year renewal option; and
B. Approve an annual contingency in the amount of $39,972 (10%) aggregately per
year.
BACKGROUND
The purpose of this agreement is to provide janitorial and floor cleaning services
including all necessary labor, supplies, and equipment at Plant Nos. 1 and 2. This
renewal includes the California minimum wage requirements effective January 1 , 2019,
and additional services to restrooms, lunch areas, and sample room added during
previous renewal periods.
California minimum wage has increased and impacted the janitorial and floor cleaning
services agreement since January 2017. In order to accommodate these costs and
added services, contingency funds approved under the original service agreement were
used.
RELEVANT STANDARDS
• Provide a safe and collegial workplace
PROBLEM
The current janitorial and floor maintenance agreement is due to expire
January 31 , 2019. The proposed renewal exceeds the contract dollar amount and
contingency funds previously approved by the Board.
PROPOSED SOLUTION
The proposed increase and contract renewal will provide sufficient funds for the new
minimum wage increase and maintain the same level of service.
Page 1 of 2
TIMING CONCERNS
The existing agreement expires on January 31, 2019.
RAMIFICATIONS OF NOT TAKING ACTION
Renewal is necessary to prevent a lapse in janitorial services at Plant Nos. 1 and 2.
PRIOR COMMITTEE/BOARD ACTIONS
December 2015 - Approved a service agreement with Gamboa Services, Inc., DBA
Corporate Image Maintenance for Janitorial & Floor Maintenance Service at Plant Nos.
1 and 2, Specification No. S-2015-73013D, for the period February 1, 2016 through
January 31, 2017 for an amount not to exceed $345,700 with four (4), one-year renewal
options; and approved an annual contingency of $34,570 (10%) aggregately per year.
ADDITIONAL INFORMATION
N/A
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the Fiscal Year 2018-19 and 2019-20
operating budget (Line item: Professional and Contractual Services; Section 6, Pages
92 and 100) and the budget is sufficient for the recommended action.
Date of Approval Contract Amount Contingency
12/19/2018 $399,720 $39,972.00 (10%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
• Draft Amendment No. 1
Page 2 of 2
AMENDMENT NO. 1
To Service Agreement
Janitorial & Floor Maintenance Service at Plant 1 & 2
Specification No. S-2015-73OBD
THIS AMENDMENT TO THE AGREEMENT is made and entered into, to be effective January 1,
2019, by and between Orange County Sanitation District hereinafter referred to as "OCSD" and Gamboa
Services, Inc. DBA Corporate Image Maintenance (hereinafter referred to as "SERVICE PROVIDER"),
collectively referred to as the "Parties".
WHEREAS, OCSD and SERVICE PROVIDER executed, delivered and entered into the
Agreement between OCSD and SERVICE PROVIDER, the effective date of which is January 16, 2016,
with the term of the agreement starting on February 1, 2016 ("the Agreement"); and
WHEREAS, the Parties wish to amend the Agreement to make certain modifications which shall be
called Amendment No. 1 ("Amendment"); and
WHEREAS, the Parties to the Agreement desire that this Amendment be incorporated into the
Agreement effective on February 1, 2019; and
WHEREAS, the Parties desire that the Agreement as modified by this Amendment shall constitute
the sole and entire Agreement among the Parties;
NOW, THEREFORE, in consideration of these premises and the mutual covenants contained
herein, the Parties agree to amend the Agreement to:
1. Exercise the renewal of this Agreement for the period February 1, 2019 through January 31, 2020,
for an amount not to exceed Three Hundred Ninety Nine Thousand Seven Hundred Twenty and 00/100's
Dollars ($399,720.00) for services identified in SERVICE PROVIDER's letter dated October 17, 2018,
which is attached hereto as Exhibit B-1 and made a part hereof.
Except as expressly amended above, the Agreement will remain unchanged and in full force
and effect.
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this
Amendment No. 1 to be signed by the duly authorized representatives as of the day and year last signed
below.
Orange County Sanitation District Gamboa Services, Inc. DBA Corporate Image
Maintenance
By:
Contracts, Purchasing and Date Date
Materials Management Manager
Name:
David John Shawver Date
Board Chairman
Title:
Clerk of the Board Date
Amendment No. 1 Specification No. S-2015-730-BD
032018
OPERATIONS COMMITTEE Meeting Date To Dir.
12/05/18 12/2/19/18
AGENDA REPORT Item Number Item Number
9
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE
REHABILITATION AGREEMENT WITH DRESSER-RAND
GENERAL MANAGER'S RECOMMENDATION
Approve negotiated Purchase Order Terms & Conditions with Dresser-Rand for the
assessment and standard overhaul of the Steam Turbine at Plant No. 2, in a form
approved by General Counsel.
BACKGROUND
The Orange County Sanitation District (Sanitation District) operates eight Central
Generation (Cen Gen) engines manufactured by Cooper Bessemer at both treatment
plants. The engines generate approximately two-thirds of our electric demand and the
majority of the process heat demand, which is used in the solids digestion process. At
Plant No. 2, a Murray Steam Turbine is employed to take advantage of the exhaust heat
generated by the engines to convert the waste heat into electrical energy. Waste heat
recovery by the steam turbine is especially important approximately 10 months out of the
year due to the reduced heat demand of the plant. If the steam turbine is not utilized, the
excess heat cannot be captured and must be expelled to the environment.
In March 2018, the Board approved a sole source agreement with Dresser-Rand to
complete a major overhaul of the Plant No. 2 steam turbine. Following the Board's
approval, Dresser-Rand requested changes to the Sanitation District's standard Terms &
Conditions. Staff worked with General Counsel to negotiate modifications to the Terms
& Conditions acceptable to both parties.
RELEVANT STANDARDS
• Protect Orange County Sanitation District assets
• Maintain a proactive asset management program
• Use all practical and effective means for resource recovery
• Provide a safe and collegial workplace
PROBLEM
The Plant No. 2 steam turbine requires a major overhaul and has been in operation for
approximately 175,000 hours, with 70,000 hours (i.e. 8 years) transpiring since the last
overhaul. It is pertinent that a thorough assessment of the steam turbine and supporting
Page 1 of 3
safety systems is performed to identify, address, and rehabilitate any deficiencies
accordingly.
Following Board approval of a sole source agreement with Dresser-Rand to complete the
necessary overhaul, Dresser-Rand informed the Sanitation District that it would require
modifications to the Sanitation District's standard Terms & Conditions which now require
Board approval.
PROPOSED SOLUTION
Staff recommends approval of the modified agreement with Dresser-Rand to begin the
assessment and comprehensive overhaul of the steam turbine at Plant No. 2, to ensure
safe and reliable operation of the system.
TIMING CONCERNS
Without the steam turbine available, consistent steam flow control is hampered for the
engine heat recovery system during certain operating conditions resulting in potentially
costly repairs to the engine exhaust steam boilers and emissions system components.
RAMIFICATIONS OF NOT TAKING ACTION
Failure to take action on this repair will inhibit the ability to salvage waste heat for
electricity generation, 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
March 2018 - Approve a Sole Source Purchase Order to Dresser-Rand for the
assessment and standard overhaul of the Steam Turbine at Plant No. 2, for an amount
not to exceed $245,424, plus a 20% contingency.
ADDITIONAL INFORMATION
Dresser-Rand acquired the Murray Steam Turbine brand in a 2006 company acquisition.
FINANCIAL CONSIDERATIONS
The requested modifications to the Terms & Conditions do not alter the amount of the
sole source purchase order approved by the Board in March of this year.
Date of Approval Contract Amount Contingency
03/28/2018 $245,424 $49,085 (20%)
Page 2 of 3
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
• Purchase Order Terms & Conditions
Page 3 of 3
ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
1. CONTRACT TERMS.
1.1 Forms/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) the agreed plans and specifications of the
Purchase Order, (2) the Purchase Order signed by OCSD's Purchasing Manager and Contractor (the "Purchase Order"), (3) 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.
1.2 Additional Terms. Any other terms, conditions,or limitations suggested by Contractor or incorporated in Contractor's invoice,or other
correspondence, shall not form a part of the Agreement unless expressly accepted in writing by OCSD's Purchasing Manager.
2. PAYMENT TERMS.
2.1 Standard: Net 30 days unless otherwise stated on the Purchase Order.
2.2 Price. Except as may otherwise be included in the Purchase Order,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 also excludes applicable California, county and
municipal sales and use taxes or similar taxes now or hereafter applicable to, measured by, or imposed upon or with respect to the
goods, its or their sale, their value or their use, or any services performed in connection therewith. OCSD agrees to pay or reimburse
Contractor for any such taxes which Contractor or its subcontractors are required to pay.
2.3 Invoices.Contractor shall submit invoices to APstaff(a)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 or shipped /services performed. OCSD shall
pay for goods/services after receipt of a conforming invoice and confirmation by OCSD of its accuracy.
2.4.
3. DELIVERY/PERFORMANCE,INSPECTION,AND RISK OF LOSS.
3.1 Delivery/Performance. Contractor shall reasonably endeavor to 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 to OCSD in accordance with the applicable delivery terms set forth in the Purchase Order (INCOTERMS
2010). 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 upon delivery at 22212 Brookhurst Street, Huntington Beach, CA 92646.
3.2 Inspection. OCSD shall have the right to inspect the goods within a reasonable amount of time prior to acceptance. If, on inspection,
OCSD reasonably determines that the goods do not meet the Agreement requirements, OCSD may reject nonconforming goods until
such nonconformance has been rectified to the reasonable satisfaction of OCSD. Prior to shipment, Contractor, if requested by OCSD,
will inform OCSD of those tests and procedures which can be witnessed. Should OCSD elect to witness specific tests, OCSD must so
specify such requirement in ample time to permit Contractor to include said witness tests in the schedule. Contractor, if requested, will
advise OCSD of the schedule of such tests. However, no rescheduling of tests or delays in manufacturing or shipment will be made to
accommodate such inspection. OCSD shall have the right to inspect services within a reasonable amount of time prior to acceptance and
payment. If OCSD does not inspect the services within a reasonable time not to exceed seven (7) business days after receipt of notice
from Contractor that the services have been completed, the services shall be deemed accepted by OCSD. 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.
3.3 Risk of Loss. Risk of loss of the goods/materials passes to OCSD upon delivery in accordance with the applicable Incoterm delivery
term.
4. PERFORMANCE OF SERVICES/CONTRACTOR COVENANTS.
4.1 Personnel/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 to be held in in Contractor's name.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
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ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
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.
4.2 Status of Contractor.The legal relationship between the parties hereto is that of an independent contractor,and nothing herein shall
be deemed to make Contractor or any subcontractor(s) 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.
4.3 Taxes. 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.
445 Records. Contractor shall keep and maintain full and complete documentation and accounting records concerning all services
performed that are compensable on a time and material basis under the Agreement and shall make such documents and records
available to OCSD for inspection at any reasonable time to determine any amounts due for such work and/or to enable OCSD to
comply with all federal, State, and local laws and administrative actions. 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.
S. 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: (i) be new
unless otherwise specified, (ii) conform to OCSD's plans, specifications, and/or descriptions, as mutually agreed by the parties and (iii)
Contractor's goods be of first-class material and workmanship and free from defect until the earlier of eighteen (18) months after the
delivery of such goods or twelve(12) months from the date of first use of the item of the goods(the"Goods Warranty Period"); and (b)
all services will be: (i) of good quality, free from defect, and in conformance with the Agreement, and (ii) performed to the standard of
care that reflects competent professional knowledge and judgment, beginning with the start of the item of services and ending one (1)
year after completion of said item of services by Contractor (the"Services Warranty" Period). 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, and upon written notice from OCSD, Contractor, at its option, shall repair or replace the goods, materials and equipment
and remedy any defects in workmanship, without charge and within a reasonable period of time after receipt of OCSD's request. If
Contractor does not do so and fails to perform as required under the Goods Warranty,OCSD shall be entitled to remedy any defects itself
and to collect the reasonable and verifiable cost of the same from Contractor. If during the Services Warranty Period, Contractor is
notified in writing that any portion of the Services fails to conform to the Services Warranty, Contractor will promptly re-perform such
nonconforming portion of the Services to the reasonable satisfaction of OCSD. If re-performance is impracticable Contractor will refund
the amount of the compensation paid to Contractor for such nonconforming portion of the Services, and will reimburse OCSD for its
reasonable and verifiable costs to complete the services up to twenty percent (20%) of the total price paid to Contractor under the
Agreement. OCSD's inspection, acceptance, and/or payment shall not relieve Contractor of liability under this warranty. The remedies in
this subsection are in addition to those described in Section 6, below.
5.3 The warranties and remedies set forth in this section are conditioned upon (A)OCSD's receipt, handling, storage, installation,testing,
operation and maintenance, including tasks incident thereto, of the Goods in accordance with the recommendations of Contractor to the
extent applicable or,in the absence of such recommendations or to the extent not applicable, in in such a manner that reflects competent
professional knowledge and judgment. In addition, such goods shall not have been operated in excess of limitations specified in writing
by Contractor and not have been subjected to accident, alteration, abuse or misuse. For all warranty work, where equipment unrelated
to this Agreement may obstruct access to goods, materials, and structures OCSD shall make reasonable efforts to provide Contractor
with access to the nonconformity, by disassembling, removing, replacing and reinstalling any goods, materials or structures to the extent
necessary to permit Contractor to perform its warranty obligations.
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ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
5.4 THE WARRANTIES SET FORTH IN THIS ARTICLE ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER WARRANTIES, WHETHER
STATUTORY, EXPRESS, OR IMPLIED (INCLUDING ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE,AND ALL WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE).
6.EXPORT CONTROL.OCSD acknowledges that Contractor is required to comply with all applicable export laws and regulations relating
to the sale, exportation, transfer, assignment, disposal and usage of goods provided under this agreement, including any export license
requirements. OCSD agrees that such goods shall not at any time directly or indirectly be used, exported, sold,transferred, assigned or
otherwise disposed of in a manner which will result in non-compliance with such applicable export laws and regulations. It shall be a
condition of the continuing performance of Contractor and of its obligations hereunder that compliance with such export laws and
regulations be maintained at all times.
7. DELAY LIQUIDATED DAMAGES. In the event that delivery of any goods is delayed more than twenty-one (21) calendar days
beyond the agreed date of delivery as set forth in the Purchase Order, OCSD may assess liquidated damages for Contractor's delivery
delay. Such damages will be limited to a rate specified in each Purchase Order. ("Delay Liquidated Damages'. Contractor's exclusive
liability and OCSD's sole and exclusive remedy for delay in delivery of the goods caused by Contractor shall be the payment of Delay
Liquidated Damages as set forth herein, and no other remedies of any kind whatsoever shall apply whether based in contract, in tort
(including negligence and strict liability) or any other theory of recovery. It is agreed by both parties that the aforementioned damages
for delivery would be difficult to quantify as such the parties have fairly agreed that these damages are a reasonable estimate and do
not constitute a penalty.
There are no guarantees relating to the completion date of any services unless specifically set forth in the Purchase Order. In the event
any performance guarantees are provided in the Purchase Order, OCSD's sole and exclusive remedy and Contractor's sole and exclusive
liability for any unexcused failure of the Contractor to complete the services beyond the agreed date of completion as set forth in the
Purchase Order,any theory of recovery,shall be the liquidated damages specified in such Purchase Order up to the limit specified therein.
It is agreed by both parties that the aforementioned damages for completion of the services would be difficult to quantify, and as such,
the parties have fairly agreed that these damages are a reasonable estimate and do not constitute a penalty.
S. CONTRACTOR'S REMEDIES. If OCSD defaults under the Agreement, Contractor may file a claim with OCSD, in accordance with
applicable provisions of law.
9. CONFIDENTIALITY. Contractor may have a proprietary interest in information that may be furnished pursuant to this agreement.
To the extent permitted by law, OCSD will keep in confidence and will not disclose any such information which is specifically designated
as confidential to Contractor or use any such information for other than the purpose for which it is supplied without the prior written
permission of Contractor. The provisions of this paragraph shall not apply to information, notwithstanding any confidential designation
thereof, which is known to OCSD without any restriction as to disclosure or use at the time it is furnished, which is or becomes generally
available to the public without breach of any confidentiality obligation of OCSD,which is received from a third party without limitation or
restriction on said third party or OCSD at the time of disclosure. Additionally, OCSD's rights to any confidential or proprietary information
shall be limited solely to the use in operation,repair and/or maintenance of the designated project.At no time will any permanent transfer
of title be created for any technical drawings or intellectual property, nor shall any of this specifically designated information be disclosed
other than for the above stated purposes. Contractor acknowledges that OCSD is a public agency subject to compliance with the California
Public Records Act. Should OCSD receive a California Public Records Act request that pertains to documents related to this Agreement,
OCSD will notify Contractor who may then choose to intercede to prevent disclosure of confidential information not otherwise protected
by the California Public Records Act.
10.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, by providing thirty (30) days'written notice to Contractor. In such case, Contractor shall immediately discontinue
all work (unless the notice directs otherwise). Further, should the work be delayed for a period in excess of 180 days for any reason
attributable to force majeure,the Agreement may be deemed to have been terminated at the option of either Party. Should either Party
opt to terminate the Agreement, Contractor shall be entitled only to payment for such goods, materials and equipment delivered and
services performed, and reasonable, documented costs related to termination as may be demonstrated by Contractor, including but not
limited to manufacturing costs for materials and/or components that cannot be used for another reasonably foreseeable purpose or
otherwise returned.
8.2. Termination for Default. (A) OCSD may terminate the Agreement based on the Contractor's default. If Contractor (i) materially
breaches any provision of this Agreement and if such breach is not commenced to be cured within fifteen (15)days after receiving written
1343169.1
ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
notice from OCSD specifying such breach in reasonable detail, or (ii) in the event of an act of insolvency or bankruptcy by Contractor
then 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 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.
Contractor may also terminate the Agreement for cause in the event of a material breach of the Agreement by OCSD which OCSD fails
to commence to cure within fifteen (15)days after notice thereof from Contractor and fails to diligently pursue thereafter. In such event,
Contractor shall be entitled only to payment for such goods, materials and equipment delivered and services performed, and reasonable,
documented costs related to termination as may be demonstrated by Contractor, including but not limited to manufacturing costs for
materials and/or components that cannot be used for another reasonably foreseeable purpose or otherwise returned.
11.INDEMNIFICATION/DUTY TO DEFEND.
Contractor shall assume all responsibility for damages to third party property and/or injuries to persons, including accidental death, to
the extent such damages, injuries, or death are caused by Contractor in the performance of 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. 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 third party property or interference with
the use of such third party property to the extent such damages injuries or death are caused by the negligent acts or omissions of
Contractor; and/or(b)on account of any goods and services provided under this Agreement,Contractor will,at its own expense,defend
or at its option settle any suit or proceeding brought against OCSD so far as based on an allegation that any services, or use thereof
for their intended purpose, constitutes an infringement of any United States patent or copyright or misappropriation of a trade secret.
In case the services, or any part thereof, as a result of any suit or proceeding so defended is held to constitute infringement of any
such United States patent, copyright or trade secret, or its use by OCSD is enjoined, Contractor will, at its option and its own expense,
either: (i) procure for OCSD the right to continue using said services; (ii) replace the work with substantially equivalent non-infringing
work; or(iii)modify the work so it becomes non-infringing. Contractor will pay the damages and costs awarded in any suit or proceeding
so defended. Contractor will not be responsible for any settlement of such suit or proceeding made without its prior written consent.
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. If Contractor is promptly given information,
and assistance in a timely manner for the defense of any suit or proceeding, Contractor agrees to provide this defense immediately
upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel. This section shall survive
the expiration or early termination of the Agreement.
12. GENERAL PROVISIONS.
12.1 Notice. Notice shall be given by certified mail, return receipt requested, facsimile or other electronic telecommunications
transmission with a date and time receipt acknowledgment, or personal delivery. Notice shall be effective on receipt.
12.2 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.
12.3 Force Majeure. 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 circumstances beyond the reasonable control of the parties, including but not limited to labor disputes,
strikes, war, riots, insurrection, civil commotion,fire, flood, accident, storm or any Act of God.
12.4 Assignment. Except with respect to any of Contractor's affiliates, neither party may assign a right under or an interest in the
Agreement nor delegate or subcontract an obligation under the Agreement, without the written consent of the other party (consent of
which shall not be unreasonably withheld). Any attempted assignment, delegation or subcontract,without such written consent, shall be
void.
12.5 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.
12.6 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. The
parties shall attempt in good faith to resolve such dispute promptly by negotiations between executives who have authority to settle the
dispute, subject to approval by OCSD's Board of Directors. Any trial of any dispute not so settled will be resolved by a judge sitting
without a jury and EACH PARTY EXPRESSLY WAIVES ITS RIGHT TO A JURY TRIAL.
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ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
12.7 Construction and Severability. To the fullest extent allowed by law, the provisions of the Agreement shall be construed in a
manner that 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.
12.8 Change Order. OCSD may request change orders within the scope of the Agreement and, if accepted by Contractor, the price,
performance, schedule and other pertinent provisions of the Agreement will be adjusted by mutual agreement of the parties prior to
implementation of the change. Expenses incurred by Contractor due to (i) delays, other than delays which are deemed to be within the
reasonable control of the Contractor, and (ii)changes in applicable laws, regulations and technical codes and standards or the imposition
of new laws, regulations and/or technical codes and standards after the execution of this Agreement will be treated as changes to the
scope of work and the Agreement will be adjusted as set forth above.
12.8 Hazardous Materials. Contractor shall have no responsibility or liability with regard to any hazardous material which it does not
know or have reason to know of its existence in the performance of the work and OCSD shall be responsible for all pollution and
environmental impairment arising from the property,the equipment and the services other than for any such hazardous materials which
Contractor may have brought onsite which it may suddenly and accidently release. In the event that any such hazardous materials,
including any asbestos materials, are discovered at the site, Contractor shall have the right to suspend the work in progress, without
consequence, until such time as the hazard has been safely remediated or contained by OCSD.
13. INSURANCE AND BOND REQUIREMENTS. Before beginning work under the Agreement, Contractor shall accept the terms
provided in OCSD's Acknowledgement of Insurance Requirements and shall provide OCSD with:
13.1 Such bonds, insurance and certificates of insurance, as set forth in 13.2.
13.2 If not described in 11.1, (1) Certificates of commercial general liability, automobile liability, employer's liability and workers
compensation insurance in the following amounts: CGL($10,000,000 each occurrence and in the aggregate), Automobile ($10,000,000
combined single limit bodily injury and property damage), Employer's Liability ($1,000,000 each accident and in the aggregate, and
$1,000,000 disease each employee),Worker's Compensation (Statutory amount); (2) 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 provided, however, that such additional insured status shall apply to the extent of Contractor's indemnity
obligations under Article 11. Subject to a change order for the additional costs of any bond, OCSD may request that Contractor procure
labor and materials bonds, reasonably satisfactory to OCSD. 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 VIII, or
better, in accordance with the most current AM Best rating.All sureties and insurers must have agents for service of process in California.
14. 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.
15. LIMITATION OF LIABILITY: NOTWITHSTANDING ANY OTHER PROVISION OF THE AGREEMENT, OCSD EXPRESSLY AGREES
THAT NEITHER CONTRACTOR NOR ITS SUBCONTRACTORS WILL UNDER ANY CIRCUMSTANCES BE LIABLE UNDER ANY THEORY OF
RECOVERY, WHETHER BASED IN CONTRACT, IN TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), UNDER WARRANTY, OR
OTHERWISE, FOR ANY SPECIAL,INDIRECT,INCIDENTAL OR CONSEQUENTIAL LOSS OR DAMAGE WHATSOEVER; DAMAGE TO OR LOSS
OF ANY PROPERTY OR EQUIPMENT; LOSS OF PROFITS OR REVENUE OR LOSS OF USE THEREOF; LOSS OF USE OF OCSD'S MATERIAL,
EQUIPMENT OR POWER SYSTEM; COST OF CAPITAL: COST OF FUEL; COST OF PURCHASED OR REPLACEMENT POWER; INCREASED
COSTS OF ANY KIND; OR ANY CLAIMS OF CUSTOMERS OF OCSD.
OCSD EXPRESSLY AGREES THAT THE REMEDIES PROVIDED IT IN THE AGREEMENT ARE EXCLUSIVE,AND THAT NOTWITHSTANDING
ANY OTHER PROVISION OF THE AGREEMENT, EXCEPT FOR CONTRACTOR'S OBLIGATIONS UNDER ARTICLES 9., 11.(a) AND 11(b)
HEREIN,UNDER NO CIRCUMSTANCES SHALL THE TOTAL AGGREGATE LIABILITY OF CONTRACTOR UNDER ANY THEORY OF RECOVERY,
WHETHER BASED IN CONTRACT, IN TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), UNDER WARRANTY, OR OTHERWISE,
EXCEED THE FOLLOWING AMOUNTS:
Order Value Liability Amount
Up to$300,000 Three times the Purchase Order amount
$300,001 -$500,000 Two times the Purchase Order amount
$500,001 -and above The Order amount
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ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
ALL LIABILITY OF CONTRACTOR AND ITS SUBCONTRACTORS UNDER THIS AGREEMENT SHALL TERMINATE NO LATER THAN TWELVE
(12) MONTHS AFTER THE EXPIRATION OF THE WARRANTY PERIOD. THE PROVISIONS OF THIS ARTICLE SHALL PREVAIL OVER ANY
CONFLICTING OR INCONSISTENT PROVISIONS SET FORTH ELSEWHERE IN THE AGREEMENT.
1343169.1
OPERATIONS COMMITTEE Meeting Date To Dir.
12/05/18 12/2/19/18
AGENDA REPORT Item Number Item Number
to
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117
GENERAL MANAGER'S RECOMMENDATION
A. Approve a Professional Construction Services Agreement with Brown and
Caldwell to provide construction support services for Ocean Outfall System
Rehabilitation, Project No. J-117, Outfall Low Flow Pump Station, Contract
No. J-117B, for a total amount not to exceed $8,563,913; and
B. Approve a contingency of $856,391 (10%).
BACKGROUND
Ocean Outfall System Rehabilitation, Project No. J-117, has two construction contracts.
The second and final construction contract is the Outfall Low Flow Pump Station, Contract
No. J-117B, which will construct a new Outfall Low Flow Pump Station and rehabilitate
the existing Ocean Outfall Booster Station. The contract also includes construction of a
new Plant Water Pump Station required to separate reclaimable and non-reclaimable
flows to support the Orange County Water District's reclamation of Plant No. 2 effluent,
and construction of Supervisory Control and Data Acquisition (SCADA) System and
Network Upgrades.
The design of this work has been completed by Brown and Caldwell under a Professional
Design Services Agreement for Project Nos. J-117 and P2-107.
RELEVANT STANDARDS
• Comply with California Government Code Section 4526, select the "best qualified
firm" and "negotiate fair and reasonable fees."
PROBLEM
The Orange County Sanitation District (Sanitation District) requires the services of the
design consultant during construction of Outfall Low Flow Pump Station, Contract
No. J-117B, which is scheduled to be awarded in December 2018.
PROPOSED SOLUTION
Award a Professional Construction Services Agreement to provide engineering support
services during construction. The proposed services will be provided on an as-needed
Page 1 of 3
basis and includes submittal review, answering Contractor's requests for information,
reviewing contract document modifications, reviewing construction change orders,
participating in progress meetings, site visits, preparing record drawings, and assisting in
the closeout of the project.
TIMING CONCERNS
The construction contract for the Outfall Low Flow Pump Station, Contract No. J-117B, is
recommended to be awarded at the December 2018 Board of Directors meeting. The
requested engineering support services will be needed at the start of construction.
RAMIFICATIONS OF NOT TAKING ACTION
Engineering support services needed to facilitate and review construction activities will
not be available, which may negatively impact the project execution.
PRIOR COMMITTEE/BOARD ACTIONS
September 2018 - Approved a contingency increase of $677,801 (10%) to the
Professional Design Services Agreement with Brown and Caldwell for Ocean Outfall
System Rehabilitation, Project No. J-117, for a total contingency of $4,405,708 (65%).
September 2017 - Approved a contingency increase of $677,801 (10%) to the
Professional Design Services Agreement with Brown and Caldwell for Ocean Outfall
System Rehabilitation, Project No. J-117, for a total contingency of $3,727,907 (55%).
November 2016 - Approved a budget increase of $28,517,000 for Ocean Outfall System
Rehabilitation, Project No. J-117, for a total budget amount of$91,000,000, and approved
a contingency increase of $2,372,305 (35%) to the Professional Design Services
Agreement with Brown and Caldwell for Ocean Outfall System Rehabilitation, Project
No. J-117, for a total contingency of $3,050,106 (45%).
February 2015 - Approved a Professional Design Services Agreement with Brown and
Caldwell to provide engineering design services for an amount not to exceed $6,778,015
and approved a contingency of $677,801 (10%).
ADDITIONAL INFORMATION
Brown and Caldwell has successfully furnished engineering services for the design of
both Ocean Outfall System Rehabilitation, Project No. J-117, and SCADA System and
Network Upgrades, Project No. P2-107, and their support services during construction
will provide continuity through the completion of both projects. Construction of SCADA
System and Network Upgrades, Project No. P2-107, has been incorporated into Outfall
Low Flow Pump Station, Contract No. J-117B.
Staff negotiated with Brown and Caldwell for these support services in accordance with
the Sanitation District's adopted policies and procedures. A review of the proposed price
Page 2 of 3
was conducted using estimated quantities of requests for information, submittals,
meetings, site visits, change order review, and design revisions, as well as the level of
effort for preparing record drawings. Based on this review, staff determined the
negotiated fee to be fair and reasonable for these services.
CEQA
An Initial Study/Mitigated Negative Declaration and Mitigation Monitoring and Reporting
Program for the Outfall Low Flow Pump Station, Contract No. J-117B, was adopted by
the Board on September 27, 2017. The Notice of Determination was filed with the Orange
County Clerk-Recorder on October 2, 2017.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted (Fiscal Year 2018-19 and 2019-20 Budget,
Section 8, Page 37) and the budget is sufficient for this action.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
• Professional Construction Services Agreement
VP:dm:gc
Page 3 of 3
PROFESSIONAL CONSTRUCTION SERVICES AGREEMENT
THIS AGREEMENT, is made and entered into to be effective the 19t" day of December,
2018 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to
as "SANITATION DISTRICT", and BROWN AND CALDWELL, for purposes of this Agreement
hereinafter referred to as "CONSULTANT".
WITNESSETH:
WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT to provide
Construction Support Services for Outfall Low Flow Pump Station, Contract No. J-117B;
and,
WHEREAS, CONSULTANT is qualified to provide the necessary services for
Construction Support Services in connection with these requirements; and,
WHEREAS, the SANITATION DISTRICT has adopted procedures in accordance with
the SANITATION DISTRICT Purchasing Ordinance Section 4.03(B) for the continuation of
services and has proceeded in accordance with said procedures to perform this work; and,
WHEREAS, at its regular meeting on December 19, 2018 the Board of Directors, by
Minute Order, accepted the recommendation of the Operations Committee to approve this
Agreement between the SANITATION DISTRICT and CONSULTANT.
NOW, THEREFORE, in consideration of the promises and mutual benefits, which will
result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows:
1. SCOPE OF WORK
CONSULTANT agrees to furnish necessary professional and technical services to
accomplish those project elements outlined in the Scope of Work attached hereto as
"Attachment A", and by this reference made a part of this Agreement.
A. The CONSULTANT shall be responsible for the professional quality, technical
accuracy, completeness, and coordination of all design, drawings, specifications,
and other services furnished by the CONSULTANT under this Agreement,
including the work performed by its Subconsultants. Where approval by the
SANITATION DISTRICT is indicated, it is understood to be conceptual approval
only and does not relieve the CONSULTANT of responsibility for complying with
all laws, codes, industry standards and liability for damages caused by errors,
omissions, noncompliance with industry standards, and/or negligence on the part
of the CONSULTANT or its Subconsultants.
B. CONSULTANT is responsible for the quality of work prepared under this
Agreement and shall ensure that all work is performed to the standards of best
engineering practice for clarity, uniformity, and completeness.
C. In the event that work is not performed to the satisfaction of the SANITATION
DISTRICT and does not conform to the requirements of this Agreement or any
applicable industry standards, the CONSULTANT shall, without additional
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 1 of 18
compensation, promptly correct or revise any errors or deficiencies in its designs,
drawings, specifications, or other services within the timeframe specified by the
Project Engineer/Project Manager. The SANITATION DISTRICT may charge to
CONSULTANT all costs, expenses and damages associated with any such
corrections or revisions.
D. All CADD drawings, figures, and other work shall be produced by
CONSULTANTS and Subconsultants using the SANITATION DISTRICT
standard software. Conversion of CADD work from any other non-standard
CADD format to the SANITATION DISTRICT format shall not be acceptable in
lieu of this requirement.
Electronic files shall be subject to an acceptance period of thirty (30) calendar
days during which the SANITATION DISTRICT shall perform appropriate
acceptance tests. CONSULTANT shall correct any discrepancies or errors
detected and reported within the acceptance period at no additional cost to the
SANITATION DISTRICT.
E. All professional services performed by the CONSULTANT, including but not
limited to all drafts, data, correspondence, proposals, reports, and estimates
compiled or composed by the CONSULTANT, pursuant to this Agreement, are
for the sole use of the SANITATION DISTRICT, its agents and employees.
Neither the documents nor their contents shall be released to any third party
without the prior written consent of the SANITATION DISTRICT. This provision
does not apply to information that (a) was publicly known, or otherwise known to
the CONSULTANT, at the time that it was disclosed to the CONSULTANT by the
SANITATION DISTRICT, (b) subsequently becomes publicly known to the
CONSULTANT other than through disclosure by the SANITATION DISTRICT.
2. COMPENSATION
Total compensation shall be paid to CONSULTANT for services in accordance with the
following provisions:
A. Total Compensation
Total compensation shall be in an amount not to exceed Dollars
($ ). Total compensation to CONSULTANT including burdened
labor (salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s)
fees and costs shall not exceed the sum set forth in Attachment "E" - Fee
Proposal.
B. Labor
As a portion of the total compensation to be paid to CONSULTANT, the
SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the
burdened salaries (salaries plus benefits) actually paid by CONSULTANT
charged on an hourly-rate basis to this project and paid to the personnel of
CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT
shall provide the SANITATION DISTRICT with certified payroll records of all
employees' work that is charged to this project.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 2 of 18
C. Overhead
As a portion of the total compensation to be paid to CONSULTANT, the
SANITATION DISTRICT shall compensate CONSULTANT and Subconsultants
for overhead at the rate equal to the percentage of burdened labor as specified in
Attachment "E" - Fee Proposal.
D. Profit
Profit for CONSULTANT and Subconsultants shall be a percentage of consulting
services fees (Burdened Labor and Overhead). When the consulting or
subconsulting services amount is $250,000 or less, the maximum Profit shall be
10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by
a straight declining percentage between 10% and 5%. For consulting or
subconsulting services fees with a value greater than $2,500,000, the maximum
Profit shall be 5%. Addenda shall be governed by the same maximum Profit
percentage after adding consulting services fees.
As a portion of the total compensation to be paid to CONSULTANT and
Subconsultants, the SANITATION DISTRICT shall pay profit for all services
rendered by CONSULTANT and Subconsultants for this project according to
Attachment "E" - Fee Proposal.
E. Subconsultants
For any Subconsultant whose fees for services are greater than or equal to
$100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to
Subconsultant total compensation in accordance with the Subconsultant amount
specified in Attachment "E" - Fee Proposal.
For any Subconsultant whose fees for services are less than $100,000,
CONSULTANT may pay to Subconsultant total compensation on an hourly-rate
basis per the attached hourly rate Schedule and as specified in the Scope of
Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs
of Subconsultant fees and charges in an amount not to exceed the sum set forth
in Attachment "E" - Fee Proposal.
F. Direct Costs
The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants
the actual costs of permits and associated fees, travel and licenses for an
amount not to exceed the sum set forth in Attachment "E" - Fee Proposal. The
SANITATION DISTRICT shall also pay to CONSULTANT actual costs for
equipment rentals, leases or purchases with prior approval of the SANITATION
DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION
DISTRICT receipts and other documentary records to support CONSULTANT's
request for reimbursement of these amounts, see Attachment "D" —Allowable
Direct Costs. All incidental expenses shall be included in overhead pursuant to
Section 2 - COMPENSATION above.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 3 of 18
G. Other Direct Costs
Other Direct Costs incurred by CONSULTANT and its Contractor due to
modifications in scope of work resulting from field investigations and field work
required by Contract. These items may include special equipment, test
equipment and tooling and other materials and services not previously identified.
Refer to attachment "D" Allowable Direct Costs for payment information.
H. Reimbursable Direct Costs
The SANITATION DISTRICT will reimburse the CONSULTANT for reasonable
travel and business expenses as described in this section and further described in
Attachment "D" - Allowable Direct Costs to this Agreement. The reimbursement of
the above mentioned expenses will be based on an "accountable plan" as
considered by Internal Revenue Service (IRS). The plan includes a combination of
reimbursements based upon receipts and a "per diem" component approved by
IRS. The most recent schedule of the per diem rates utilized by the SANITATION
DISTRICT can be found on the U.S. General Service Administration website at
http://www.gsa.gov/portal/category/l 04711#.
The CONSULTANT shall be responsible for the most economical and practical
means of management of reimbursable costs inclusive but not limited to travel,
lodging and meals arrangements. The SANITATION DISTRICT shall apply the
most economic and practical method of reimbursement which may include
reimbursements based upon receipts and/or"per diem" as deemed the most
practical.
CONSULTANT shall be responsible for returning to the SANITATION DISTRICT
any excess reimbursements after the reimbursement has been paid by the
SANITATION DISTRICT.
Travel and travel arrangements—Any travel involving airfare, overnight stays or
multiple day attendance must be approved by the SANITATION DISTRICT in
advance.
Local Travel is considered travel by the CONSULTANT within the SANITATION
DISTRICT general geographical area which includes Orange, Los Angeles,
Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties.
Automobile mileage is reimbursable if CONSULTANT is required to utilize
personal vehicle for local travel.
Lodging — Overnight stays will not be approved by the SANITATION DISTRICT for
local travel. However, under certain circumstances overnight stay may be allowed
at the discretion of the SANITATION DISTRICT based on reasonableness of
meeting schedules and the amount of time required for travel by the
CONSULTANT. Such determination will be made on a case-by-case basis and at
the discretion of the SANITATION DISTRICT.
Travel Meals — Per-diem rates as approved by IRS shall be utilized for travel meal
reimbursements. Per diem rates shall be applied to meals that are appropriate for
travel times. Receipts are not required for the approved meals.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 4 of 18
Additional details related to the reimbursement of the allowable direct costs are
provided in the Attachment "D" -Allowable Direct Costs of this Agreement.
I. Limitation of Costs
If, at any time, CONSULTANT estimates the cost of performing the services
described in CONSULTANT's Proposal will exceed the not-to-exceed amount of
the Agreement, including approved additional compensation, CONSULTANT
shall notify the SANITATION DISTRICT immediately, and in writing. This written
notice shall indicate the additional amount necessary to complete the services.
Any cost incurred in excess of the approved not-to-exceed amount, without the
express written consent of the SANITATION DISTRICT's authorized
representative shall be at CONSULTANT's own risk. This written notice shall be
provided separately from, and in addition to any notification requirements
contained in the CONSULTANT's invoice and monthly progress report. Failure to
notify the SANITATION DISTRICT that the services cannot be completed within
the authorized not-to-exceed amount is a material breach of this Agreement.
3. REALLOCATION OF TOTAL COMPENSATION
The SANITATION DISTRICT, by its Director of Engineering, shall have the right to
approve a reallocation of the incremental amounts constituting the total compensation,
provided that the total compensation is not increased.
4. PAYMENT
A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed
breakdown of costs associated with the performance of any corrections or
revisions of the work for that invoicing period. CONSULTANT shall allocate costs
in the same manner as it would for payment requests as described in this Section
of the Agreement. CONSULTANT shall warrant and certify the accuracy of these
costs and understand that submitted costs are subject to Section 11 - AUDIT
PROVISIONS.
B. CONSULTANT may submit monthly or periodic statements requesting payment
for those items included in Section 2 - COMPENSATION hereof in the format as
required by the SANITATION DISTRICT. Such requests shall be based upon the
amount and value of the work and services performed by CONSULTANT under
this Agreement and shall be prepared by CONSULTANT and accompanied by
such supporting data, including a detailed breakdown of all costs incurred and
project element work performed during the period covered by the statement, as
may be required by the SANITATION DISTRICT.
Upon approval of such payment request by the SANITATION DISTRICT,
payment shall be made to CONSULTANT as soon as practicable of one hundred
percent (100%) of the invoiced amount on a per-project-element basis.
If the SANITATION DISTRICT determines that the work under this Agreement or
any specified project element hereunder, is incomplete and that the amount of
payment is in excess of:
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 5 of 18
i. The amount considered by the SANITATION DISTRICT's Director of
Engineering to be adequate for the protection of the SANITATION DISTRICT; or
ii. The percentage of the work accomplished for each project element.
He may, at his discretion, retain an amount equal to that which insures that the
total amount paid to that date does not exceed the percentage of the completed
work for each project element or the project in its entirety.
C. CONSULTANT may submit periodic payment requests for each 30-day period of
this Agreement for the profit as set forth in Section 2 - COMPENSATION above.
Said profit payment request shall be proportionate to the work actually
accomplished to date on a per-project-element basis. In the event the
SANITATION DISTRICT's Director of Engineering determines that no satisfactory
progress has been made since the prior payment, or in the event of a delay in the
work progress for any reason, the SANITATION DISTRICT shall have the right to
withhold any scheduled proportionate profit payment.
D. Upon satisfactory completion by CONSULTANT of the work called for under the
terms of this Agreement, and upon acceptance of such work by the SANITATION
DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for
such work, including any retained percentages relating to this portion of the work.
E. Upon satisfactory completion of the work performed hereunder and prior to final
payment under this Agreement for such work, or prior settlement upon
termination of this Agreement, and as a condition precedent thereto,
CONSULTANT shall execute and deliver to the SANITATION DISTRICT a
release of all claims against the SANITATION DISTRICT arising under or by
virtue of this Agreement other than such claims, if any, as may be specifically
exempted by CONSULTANT from the operation of the release in stated amounts
to be set forth therein.
F. Pursuant to the California False Claims Act (Government Code Sections 12650-
12655), any CONSULTANT that knowingly submits a false claim to the
SANITATION DISTRICT for compensation under the terms of this Agreement
may be held liable for treble damages and up to a ten thousand dollars ($10,000)
civil penalty for each false claim submitted. This Section shall also be binding on
all Subconsultants.
A CONSULTANT or Subconsultant shall be deemed to have submitted a false
claim when the CONSULTANT or Subconsultant: a) knowingly presents or
causes to be presented to an officer or employee of the SANITATION DISTRICT
a false claim or request for payment or approval; b) knowingly makes, uses, or
causes to be made or used a false record or statement to get a false claim paid
or approved by the SANITATION DISTRICT; c) conspires to defraud the
SANITATION DISTRICT by getting a false claim allowed or paid by the
SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or
used a false record or statement to conceal, avoid, or decrease an obligation to
the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission
of a false claim to the SANITATION DISTRICT, and fails to disclose the false
claim to the SANITATION DISTRICT within a reasonable time after discovery of
the false claim.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 6 of 18
5. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION
AND RECORD OF WAGES
A. To the extent CONSULTANT's employees and/or Subconsultants 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 et seq,
CONSULTANT and Subconsultants 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.
B. The CONSULTANT and Subconsultants 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
Section 1771.4(a) (3). Penalties for non-compliance with the requirements of
Section 1776 may be deducted from progress payments per Section 1776.
C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants
shall furnish a copy of all certified payroll records to the SANITATION DISTRICT
and/or general public upon request, provided the public request is made through
the SANITATION DISTRICT, the Division of Apprenticeship Standards or the
Division of Labor Enforcement of the Department of Industrial Relations.
D. The CONSULTANT and Subconsultants shall comply with the job site notices
posting requirements established by the Labor Commissioner per Title 8,
California Code of Regulations Section 16461(e).
6. DOCUMENT OWNERSHIP — SUBSEQUENT CHANGES TO PLANS AND
SPECIFICATIONS
A. Ownership of Documents for the Professional Services performed.
All documents, including but not limited to, original plans, studies, sketches,
drawings, computer printouts and disk files, and specifications prepared in
connection with or related to the Scope of Work or Professional Services, shall
be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's
ownership of these documents includes use of, reproduction or reuse of and all
incidental rights, whether or not the work for which they were prepared has been
performed. The SANITATION DISTRICT 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. This Section shall
apply whether the CONSULTANT's Professional Services are terminated: a) by
the completion of the Agreement, or b) in accordance with other provisions of this
Agreement. Notwithstanding any other provision of this paragraph or Agreement,
the CONSULTANT shall have the right to make copies of all such plans, studies,
sketches, drawings, computer printouts and disk files, and specifications.
B. CONSULTANT shall not be responsible for damage caused by subsequent
changes to or uses of the plans or specifications, where the subsequent changes
or uses are not authorized or approved by CONSULTANT, provided that the
service rendered by CONSULTANT was not a proximate cause of the damage.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 7 of 18
7. INSURANCE
A. General
i. Insurance shall be issued and underwritten by insurance companies
acceptable to the SANITATION DISTRICT.
ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial
Rating of at least Class Vill, or better, in accordance with the most current
A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept
State Compensation Insurance Fund, for the required policy of Worker's
Compensation Insurance subject to the SANITATION DISTRICT's option to
require a change in insurer in the event the State Fund financial rating is
decreased below "B". Further, the SANITATION DISTRICT will require
CONSULTANT to substitute any insurer whose rating drops below the levels
herein specified. Said substitution shall occur within twenty (20) days of
written notice to CONSULTANT, by the SANITATION DISTRICT or its agent.
iii. Coverage shall be in effect prior to the commencement of any work under
this Agreement.
B. General Liability
The CONSULTANT shall maintain during the life of this Agreement, including the
period of warranty, Commercial General Liability Insurance written on an
occurrence basis providing the following minimum limits of liability coverage:
Two Million Dollars ($2,000,000) per occurrence with Two Million Dollars
($2,000,000) aggregate. Said insurance shall include coverage for the following
hazards: Premises-Operations, blanket contractual liability (for this Agreement),
products liability/completed operations (including any product manufactured or
assembled), broad form property damage, blanket contractual liability,
independent contractors liability, personal and advertising injury, mobile
equipment, owners and contractors protective liability, and cross liability and
severability of interest clauses. A statement on an insurance certificate will not be
accepted in lieu of the actual additional insured endorsement(s). If requested by
SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse
and Underground) and Riggers/On Hook Liability must be included in the
General Liability policy and coverage must be reflected on the submitted
Certificate of Insurance.
C. Umbrella Excess Liability
The minimum limits of general liability and Automotive Liability Insurance
required, as set forth herein, shall be provided for through either a single policy of
primary insurance or a combination of policies of primary and umbrella excess
coverage. Umbrella 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 automotive liability.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 8 of 18
D. Automotive/Vehicle Liability Insurance
The CONSULTANT shall maintain a policy of Automotive 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: Combined single limit of One Million Dollars ($1,000,000) or
alternatively, One Million Dollars ($1,000,000) per person for bodily injury and
One Million Dollars ($1,000,000) per accident for property damage. A statement
on an insurance certificate will not be accepted in lieu of the actual additional
insured endorsement.
E. Drone Liability Insurance
If a drone will be used, drone liability insurance must be maintained by
CONSULTANT in the amount of One Million Dollars ($1,000,000) in a form
acceptable by the SANITATION DISTRICT.
F. Worker's Compensation Insurance
The CONSULTANT shall provide such Workers' Compensation Insurance as
required by the Labor Code of the State of California in the amount of the
statutory limit, including Employer's Liability Insurance with a minimum limit of
One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation
Insurance shall be endorsed to provide for a waiver of subrogation in favor of the
SANITATION DISTRICT. A statement on an insurance certificate will not be
accepted in lieu of the actual endorsements unless the insurance carrier is State
of California Insurance Fund and the identifier"SCIF" and endorsement numbers
2570 and 2065 are referenced on the certificate of insurance. If an exposure to
Jones Act liability may exist, the insurance required herein shall include coverage
for Jones Act claims.
G. Errors and Omissions/Professional Liability
CONSULTANT shall maintain in full force and effect, throughout the term of this
Agreement, standard industry form professional negligence errors and omissions
insurance coverage in an amount of not less than Five Million Dollars
($5,000,000) with limits in accordance with the provisions of this Paragraph. If
the policy of insurance is written on a "claims made" basis, said policy shall be
continued in full force and effect at all times during the term of this Agreement,
and for a period of five (5) years from the date of the completion of the services
hereunder.
In the event of termination of said policy during this period, CONSULTANT shall
obtain continuing insurance coverage for the prior acts or omissions of
CONSULTANT during the course of performing services under the term of this
Agreement. Said coverage shall be evidenced by either a new policy evidencing
no gap in coverage or by separate extended "tail" coverage with the present or
new carrier.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 9 of 18
In the event the present policy of insurance is written on an "occurrence" basis,
said policy shall be continued in full force and effect during the term of this
Agreement or until completion of the services provided for in this Agreement,
whichever is later. In the event of termination of said policy during this period,
new coverage shall be obtained for the required period to insure for the prior acts
of CONSULTANT during the course of performing services under the term of this
Agreement.
CONSULTANT shall provide to the SANITATION DISTRICT a certificate of
insurance in a form acceptable to the SANITATION DISTRICT indicating the
deductible or self-retention amounts and the expiration date of said policy, and
shall provide renewal certificates not less than ten (10) days prior to the
expiration of each policy term.
H. Proof of Coverage
The CONSULTANT shall furnish the SANITATION DISTRICT with original
certificates and amendatory endorsements effecting coverage. Said policies and
endorsements shall conform to the requirements herein stated. All certificates
and endorsements are to be received and approved by the SANITATION
DISTRICT before work commences. The SANITATION DISTRICT reserves the
right to require complete, certified copies of all required insurance policies,
including endorsements, effecting the coverage required, at any time. The
following are approved forms that must be submitted as proof of coverage:
• Certificate of Insurance ACORD Form 25 (5/2010) or equivalent.
• Additional Insurance (ISO Form) CG2010 11 85 or
(General Liability)
The combination of (ISO Forms)
CG 2010 1001 and CG 2037 1001
All other Additional Insured endorsements must
be submitted for approval by the SANITATION
DISTRICT, and the SANITATION DISTRICT
may reject alternatives that provide different or
less coverage to the SANITATION DISTRICT.
• Additional Insured Submit endorsement provided by carrier for the
(Auto Liability) SANITATION DISTRICT approval.
• Waiver of Subrogation State Compensation Insurance Fund
Endorsement No. 2570 or equivalent.
• Cancellation Notice State Compensation Insurance Fund
Endorsement No. 2065 or equivalent.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 10 of 18
I. Cancellation Notice
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. The Cancellation Section of ACORD Form 25 (5/2010) shall state the
required thirty (30) days' written notification. The policy shall not terminate, nor
shall it be cancelled, nor the coverage reduced until thirty (30) days after written
notice is given to the SANITATION DISTRICT except for nonpayment of
premium, which shall require not less than ten (10) days written notice to the
SANITATION DISTRICT. Should there be changes in coverage or an increase in
deductible or SIR amounts, the CONSULTANT and its insurance broker/agent
shall send to the SANITATION DISTRICT a certified letter which includes a
description of the changes in coverage and/or any increase in deductible or SIR
amounts. The certified letter must be sent to the attention of Risk Management,
and shall be received by the SANITATION DISTRICT not less than thirty (30)
days prior to the effective date of the change(s) if the change would reduce
coverage or increase deductibles or SIR amounts or otherwise reduce or limit the
scope of insurance coverage provided to the SANITATION DISTRICT.
J. Primary Insurance
All liability policies shall contain a Primary and Non Contributory Clause. Any
other insurance maintained by the SANITATION DISTRICT shall be excess and
not contributing with the insurance provided by CONSULTANT.
K. Separation of Insured
All liability policies shall contain a "Separation of Insureds" clause.
L. Non-Limiting (if applicable)
Nothing in this document shall be construed as limiting in any way, nor shall it
limit the indemnification provision contained in this Agreement, or the extent to
which CONSULTANT may be held responsible for payment of damages to
persons or property.
M. Deductibles and Self-Insured Retentions
Any deductible and/or self-insured retention must be declared to the
SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or
self-insured retentions require approval by the SANITATION DISTRICT. At the
option of the SANITATION DISTRICT, either: the insurer shall reduce or
eliminate such deductible or self-insured retention as respects the SANITATION
DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory
to the SANITATION DISTRICT guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 11 of 18
N. Defense Costs
Liability policies shall have a provision that defense costs for all insureds and
additional insureds are paid in addition to and do not deplete any policy limits.
O. Subconsultants
The CONSULTANT shall be responsible to establish insurance requirements for
any Subconsultant hired by the CONSULTANT. The insurance shall be in
amounts and types reasonably sufficient to deal with the risk of loss involving the
Subconsultant's operations and work.
P. Limits Are Minimums
If the CONSULTANT maintains higher limits than any minimums shown above,
the SANITATION DISTRICT requires and shall be entitled to coverage for the
higher limits maintained by CONSULTANT.
8. SCOPE CHANGES
In the event of a change in the Scope of Work, requested by SANITATION DISTRICT,
the parties hereto shall execute an amendment to this Agreement setting forth with
particularity all terms of the new Agreement, including but not limited to any additional
CONSULTANT's fees.
9. PROJECT TEAM AND SUBCONSULTANTS
CONSULTANT shall provide to SANITATION DISTRICT, prior to execution of this
Agreement, the names and full description of all Subconsultants and CONSULTANT's
project team members anticipated to be used on this project by CONSULTANT.
CONSULTANT shall include a description of the scope of work to be done by each
Subconsultant and each CONSULTANT's project team member. CONSULTANT shall
include the respective compensation amounts for CONSULTANT and each
Subconsultant on a per-project-element basis, broken down as indicated in Section 2 -
COMPENSATION.
There shall be no substitution of the listed Subconsultants and CONSULTANT's project
team members without prior written approval by the SANITATION DISTRICT.
10. ENGINEERING REGISTRATION
The CONSULTANT's personnel are comprised of registered engineers and a staff of
specialists and draftsmen in each department. The firm itself is not a registered
engineer but represents and agrees that wherever in the performance of this Agreement
requires the services of a registered engineer, such services hereunder will be
performed under the direct supervision of registered engineers.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 12 of 18
11. AUDIT PROVISIONS
A. SANITATION DISTRICT retains the reasonable right to access, review, examine,
and audit, any and all books, records, documents and any other evidence of
procedures and practices that the SANITATION DISTRICT determines are
necessary to discover and verify that the CONSULTANT is in compliance with all
requirements under this Agreement. The CONSULTANT shall include the
SANITATION DISTRICT's right as described above, in any and all of their
subcontracts, and shall ensure that these rights are binding upon all Subconsultants.
B. SANITATION DISTRICT retains the right to examine CONSULTANT's books,
records, documents and any other evidence of procedures and practices that the
SANITATION DISTRICT determines are necessary to discover and verify all
direct and indirect costs, of whatever nature, which are claimed to have been
incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance
with all requirements under this Agreement during the term of this Agreement
and for a period of three (3) years after its termination.
C. CONSULTANT shall maintain complete and accurate records in accordance with
generally accepted industry standard practices and the SANITATION
DISTRICT's policy. The CONSULTANT shall make available to the
SANITATION DISTRICT for review and audit, all project related accounting
records and documents, and any other financial data within 15 days after receipt
of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's
request, the CONSULTANT shall submit exact duplicates of originals of all
requested records to the SANITATION DISTRICT. If an audit is performed,
CONSULTANT shall ensure that a qualified employee of the CONSULTANT will
be available to assist SANITATION DISTRICT's auditor in obtaining all project
related accounting records and documents, and any other financial data.
12. LEGAL RELATIONSHIP BETWEEN PARTIES
The legal relationship between the parties hereto is that of an independent contractor
and nothing herein shall be deemed to make CONSULTANT an employee of the
SANITATION DISTRICT.
13. NOTICES
All notices hereunder and communications regarding the interpretation of the terms of
this Agreement, or changes thereto, shall be effected by delivery of said notices in
person or by depositing said notices in the U.S. mail, registered or certified mail, return
receipt requested, postage prepaid.
Notices shall be mailed to the SANITATION DISTRICT at:
ORANGE COUNTY SANITATION DISTRICT
10844 Ellis Avenue
Fountain Valley, CA 92708-7018
Attention: Larry Roberson, Principal Contracts Administrator
Copy: Victoria Pilko, Project Manager
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 13 of 18
Notices shall be mailed to CONSULTANT at:
BROWN AND CALDWELL
18500 Von Karman Avenue
Suite 1100
Irvine, CA 92612
Attention: Dan Bunce, Vice President
All communication regarding the Scope of Work, will be addressed to the Project Manager.
Direction from other SANITATION DISTRICT's staff must be approved in writing by the
SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT.
14. TERMINATION
The SANITATION DISTRICT may terminate this Agreement at any time, without cause,
upon giving thirty (30) days written notice to CONSULTANT. In the event of such
termination, CONSULTANT shall be entitled to compensation for work performed on a
prorated basis through and including the effective date of termination.
CONSULTANT shall be permitted to terminate this Agreement upon thirty (30) days
written notice only if CONSULTANT is not compensated for billed amounts in
accordance with the provisions of this Agreement, when the same are due.
Notice of termination shall be mailed to the SANITATION DISTRICT and/or
CONSULTANT in accordance with Section 13 - NOTICES.
15. DOCUMENTS AND STUDY MATERIALS
The documents and study materials for this project shall become the property of the
SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT
agrees to furnish to the SANITATION DISTRICT copies of all memoranda,
correspondence, computation and study materials in its files pertaining to the work
described in this Agreement, which is requested in writing by the SANITATION DISTRICT.
16. COMPLIANCE
CONSULTANT certifies by the execution of this Agreement that it pays employees not
less than the minimum wage as defined by law, and that it does not discriminate in its
employment with regard to race, color, religion, sex or national origin; that it is in
compliance with all federal, state and local directives and executive orders regarding
non-discrimination in employment; and that it agrees to demonstrate positively and
aggressively the principle of equal opportunity in employment.
17. AGREEMENT EXECUTION AUTHORIZATION
Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual
executing this document by and on behalf of each party is a person duly authorized to
execute agreements for that party.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 14 of 18
18. DISPUTE RESOLUTION
In the event of a dispute arising between the parties regarding performance or
interpretation of this Agreement, the dispute shall be resolved by binding arbitration
under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar
organization or entity conducting alternate dispute resolution services.
19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS
If any action at law or in equity or if any proceeding in the form of an Alternative Dispute
Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the
prevailing party shall be entitled to reasonable attorney's fees, costs and necessary
disbursements in addition to any other relief to which it may be entitled.
20. PROGRESS REPORTS
Monthly progress reports shall be submitted for review by the tenth day of the following
month and must include as a minimum: 1) current activities, 2) future activities, 3)
potential items that are not included in the Scope of Work, 4) concerns and possible
delays, 5) percentage of completion, and 6) budget status.
21. WARRANTY
CONSULTANT shall perform its services in accordance with generally accepted industry
and professional standards. If, within the 12-month period following completion of its
services, the SANITATION DISTRICT informs CONSULTANT that any part of the
services fails to meet those standards, CONSULTANT shall, within the time prescribed
by the SANITATION DISTRICT, take all such actions as are necessary to correct or
complete the noted deficiency(ies).
22. INDEMNIFICATION
To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at
CONSULTANT's sole cost and expense and with legal counsel approved by the
SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect
and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's
officers, directors, employees, consultants, and agents (collectively the "Indemnified
Parties"), from and against any and all claims, damages, liabilities, causes of action,
suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses
including without limitation, attorneys' fees, disbursements and court costs, and all other
professional, expert or consultants fees and costs and the SANITATION DISTRICT's
general and administrative expenses (individually, a "Claim", or collectively, "Claims")
which may arise from or are in any manner related, directly or indirectly, to any work
performed, or any operations, activities, or services provided by CONSULTANT in
carrying out its obligations under this Agreement to the extent of the negligent,
recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents,
employees, CONSULTANT's suppliers, consultants, subconsultants, subcontractors,
and/or anyone employed directly or indirectly by any of them, regardless of any
contributing negligence or strict liability of an Indemnified Party. Notwithstanding the
foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the
Indemnified Parties from any Claim arising from:
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 15 of 18
(A) the sole or active negligence or willful misconduct of the Indemnified Parties; or
(B) a natural disaster or other act of God, such as an earthquake; or
(C) the independent action of a third party who is neither one of the Indemnified Parties
nor the CONSULTANT, nor its principal, officer, agent, employee, nor
CONSULTANT's supplier, consultant, subconsultant, subcontractor, nor anyone
employed directly or indirectly by any of them.
Exceptions (A) through (B) above shall not apply, and CONSULTANT shall, to the fullest
extent permitted by law, indemnify the Indemnified Parties, from Claims arising from
more than one cause if any such cause taken alone would otherwise result in the
obligation to indemnify hereunder.
CONSULTANT's liability for indemnification hereunder is in addition to any liability
CONSULTANT may have to the SANITATION DISTRICT for a breach by
CONSULTANT of any of the provisions of this Agreement. Under no circumstances
shall the insurance requirements and limits set forth in this Agreement be construed to
limit CONSULTANT's indemnification obligation or other liability hereunder.
The terms of this Agreement are contractual and the result of negotiation between the
parties hereto. Accordingly, any rule of construction of contracts (including, without
limitation, California Civil Code Section 1654) that ambiguities are to be construed
against the drafting party, shall not be employed in the interpretation of this Agreement.
23. DUTY TO DEFEND
The duty to defend hereunder is wholly independent of and separate from the duty to
indemnify and such duty to defend shall exist regardless of any ultimate liability of
CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense
obligation shall arise immediately upon presentation of a Claim by any person if, without
regard to the merit of the Claim, such Claim could potentially result in an obligation to
indemnify one or more Indemnified Parties, and upon written notice of such Claim being
provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the
payment or advance of defense costs by any Indemnified Party shall not be a condition
precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In
the event a final judgment, arbitration, award, order, settlement, or other final resolution
expressly determines that the claim did not arise out of, pertain to, or relate to the
negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent,
then the SANITATION DISTRICT will reimburse CONSULTANT for the reasonable costs
of defending the Indemnified Parties against such claims.
CONSULTANT's indemnification obligation hereunder shall survive the expiration or
earlier termination of this Agreement until such time as action against the Indemnified
Parties for such matter indemnified hereunder is fully and finally barred by the applicable
statute of limitations.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 16 of 18
24. CONSULTANT PERFORMANCE
The CONSULTANT's performance shall be evaluated by the SANITATION DISTRICT.
A copy of the evaluation shall be sent to the CONSULTANT for comment. The
evaluation, together with the comments, shall be retained by the SANITATION
DISTRICT and may be considered in future CONSULTANT selection processes.
25. CLOSEOUT
When the SANITATION DISTRICT determines that all Work authorized under the
Agreement is fully complete and that the SANITATION DISTRICT requires no further
work from CONSULTANT, or the Agreement is otherwise terminated or expires in
accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the
Consultant written notice that the Agreement will be closed out. CONSULTANT shall
submit all outstanding billings, work submittals, deliverables, reports or similarly related
documents as required under the Agreement within thirty (30) days of receipt of notice of
Agreement closeout.
Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall
commence a closeout audit of the Agreement and will either:
i. Give the CONSULTANT a final Agreement Acceptance: or
ii. Advise the CONSULTANT in writing of any outstanding item or items which must be
furnished, completed, or corrected at the CONSULTANT's cost.
CONSULTANT shall be required to provide adequate resources to fully support any
administrative closeout efforts identified in this Agreement. Such support must be
provided within the timeframe requested by the SANITATION DISTRICT.
Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved
of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to
complete any portions of the work, the non-completion of which were not disclosed to
the SANITATION DISTRICT (regardless of whether such nondisclosures were
fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under
all those provisions of the Agreement which expressly or by their nature extend beyond
and survive final Agreement Acceptance.
Any failure by the SANITATION DISTRICT to reject the work or to reject the
CONSULTANT's request for final Agreement Acceptance as set forth above shall not be
deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose
nor imply acceptance of, or agreement with, the CONSULTANT's request for final
Agreement Acceptance.
26. ENTIRE AGREEMENT
This Agreement constitutes the entire understanding and agreement between the
Parties and supersedes all previous negotiations between them pertaining to the subject
matter thereof.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 17 of 18
IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION
DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year
first above written.
BROWN AND CALDWELL
By
Date
Printed Name & Title
ORANGE COUNTY SANITATION DISTRICT
By
David John Shawver Date
Board Chairman
By
Kelly A. Lore Date
Clerk of the Board
By
Marc Dubois Date
Contracts, Purchasing and
Materials Management Manager
Attachments: Attachment "A" Scope of Work
Attachment "B" Not Used
Attachment "C" Not Used
Attachment "D" Allowable Direct Costs
Attachment "E" Fee Proposal
Attachment "F" Not Used
Attachment "G" Not Attached
Attachment "H" Not Used
Attachment "I" Cost Matrix & Summary
Attachment "J" Not Used
Attachment "K" Hourly Rate Schedule for Minor Subconsultant
VP:LDR:yp
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUM STATION
Page 18 of 18
OPERATIONS COMMITTEE Meeting Date To Bd. of Dir.
12/05/18 12/19/18
AGENDA REPORT Item Number Item Number
11
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117
GENERAL MANAGER'S RECOMMENDATION
A. Receive and file Bid Tabulation and Recommendation for the Outfall Low Flow
Pump Station, Contract No. J-117B;
B. Receive and file Orange County Sanitation District's Notice of Intent to Award
dated November 21 , 2018;
C. Award a Construction Contract to Shimmick Construction Company, Inc. for the
Outfall Low Flow Pump Station, Contract No. J-117B, for a total amount not to
exceed $90,200,000; and
D. Approve a construction contract contingency of $7,216,000 (8%).
BACKGROUND
The Ocean Outfall System Rehabilitation, Project No. J-117, is being executed under two
construction contracts. The Interplant Effluent Pipeline Rehabilitation, Contract
No. J-117A, is focused on the 120" and 84" pipelines and structures that move effluent to
the outfall pumping stations. The contract is approximately 90% complete and ahead of
schedule.
The second construction contract in this project is the Outfall Low Flow Pump Station,
Contract No. J-117B. The contract includes work elements to build a new Outfall Low
Flow Pump Station and Plant Water Pump Station to support the Ground Water
Replenishment System (GWRS) expansion, refurbishment of the Ocean Outfall Booster
Station, replacement of critical electrical switchgear, improvements to the industrial
controls network, and electrical system load control and safety improvements. Several
of the elements were designed under Power Monitoring & Control Systems at Plant No.
2, Project No. P2-107, but were combined into Contract No. J-117B to reduce risk and
increase delivery efficiency.
RELEVANT STANDARDS
• CA Public Contract Code Section 20103.8, award construction contract to lowest
responsive, responsible bidder.
Page 1 of 3
PROBLEM
A construction contract is needed to construct the Plant Water Pump Station for the
Orange County Water District's GWRS expansion, to complete the mechanical and
electrical rehabilitation inside the Ocean Outfall Booster Station, and to replace the critical
electrical switchgear in the Central Generation system.
Two other contracts are also needed to complete the Outfall Low Flow Pump Station,
including a Professional Construction Services Agreement with the design consultant and
a Professional Services Agreement with Schweitzer Engineering Laboratories for
configuration and programming of a load shedding system. Approval of the construction
services agreement is requested in a separate agenda report at this same Operations
Committee Meeting. The Schweitzer Engineering Laboratories agreement is currently
being negotiated and is expected to be submitted to the February 2019 Operations
Committee meeting.
PROPOSED SOLUTION
Award a construction contract for the Outfall Low Flow Pump Station, Contract
No. J-117B.
TIMING CONCERNS
The Construction Contract is required for the new Plant Water Pump Station which is
critical for startup of the Orange County Water District's GWRS Final Expansion.
RAMIFICATIONS OF NOT TAKING ACTION
Delays to this project could impact final expansion of the GWRS.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
The Sanitation District advertised Contract No. J-117B for bid on September 12, 2018,
and five sealed bids were received on November 15, 2018.
The bids were evaluated in accordance with the Sanitation District's policies and
procedures. General Counsel participated in the evaluation of Shimmick's bid and
provided guidance regarding resolution of a minor irregularity found on Shimmick's BF-2,
Subcontractor listing form. With guidance provided by General Counsel, the Sanitation
District evaluation team completed its evaluation and deemed Shimmick Construction,
Inc. the lowest responsive and responsible Bidder. An award recommendation notice
was sent to all bidders on November 20, 2018 informing them of the intent of Sanitation
Page 2 of 3
District staff to recommend award of the Outfall Low Flow Pump Station, Contract
No. J-117B, to Shimmick Construction Company, Inc.
A summary of the bid opening follows:
Engineer's Estimate $90,772,263
Bidder Amount of Bid
Shimmick Construction Co., Inc. $ 90,200,000
PCL Construction, Inc. $ 96,899,792
Flatiron West, Inc. $ 99,858,000
Kiewit Infrastructure West Co. $110,248,000
OHL USA, Inc. $117,100,000
Staff recommends awarding a construction contract to the lowest responsive bidder,
Shimmick Construction Company, Inc., for the Outfall Low Flow Pump Station, Contract
No. J-117B, for a total amount not to exceed $90,200,000.
CEQA
An Initial Study/Mitigated Negative Declaration and Mitigation Monitoring and Reporting
Program for the Outfall Low Flow Pump Station, Contract No. J-117B, was adopted by
the Board on September 27, 2017. The Notice of Determination was filed with the Orange
County Clerk-Recorder on October 2, 2017.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted (Fiscal Year 2018-19 and 2019-20 Budget,
Section 8, Page 37) and the budget is sufficient for the recommended action.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
• Construction Contract
VP:dm:gc
Page 3 of 3
PART A
CONTRACT AGREEMENT
C-CA-090817
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.......................................................21
SECTION - 18 TERMINATION................................................................................21
SECTION - 19 WARRANTY....................................................................................21
SECTION - 20 ASSIGNMENT.................................................................................22
SECTION - 21 RESOLUTION OF DISPUTES ........................................................22
SECTION - 22 SAFETY & HEALTH ........................................................................23
SECTION - 23 NOTICES.........................................................................................23
C-CA-090817
CONTRACT AGREEMENT
ORANGE COUNTY SANITATION DISTRICT
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
THIS AGREEMENT is made and entered into, to be effective, this December 19, 2018, by and
between Shimmick Construction Company, Inc., 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-090817
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
Page 1 of 24
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-090817
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
Page 2 of 24
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.
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CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
Page 3 of 24
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:
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
C-CA-090817
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
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SECTION —4 PLANS AND SPECIFICATONS
The Work to be done is shown in a set of Plans and Specifications entitled:
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
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 thousand and eight (2008) 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 twenty-five (25) calendar days determined by
OCSD likely to be inclement weather when CONTRACTOR will be unable to work.
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
C-CA-090817
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
Page 5 of 24
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.
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-090817
CONTRACT NO. J-117B
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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 Ninety Million Two Hundred Thousand Dollars
($90,200,000) 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
not limited to Sections entitled "Mobilization Payment Requirements" and "Payment
C-CA-090817
CONTRACT NO. J-117B
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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:
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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 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.
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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.
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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 et 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.
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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(e).
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:
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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
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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: Fifteen Million Dollars ($15,000,000) per occurrence and a general
aggregate limit of Fifteen Million Dollars ($15,000,000) 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 Fifteen Million
Dollars ($15,000,000) per occurrence and a general aggregate limit of Fifteen
Million Dollars ($15,000,000) 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
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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:
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Either (1) a combined single limit of Fifteen Million Dollars ($15,000,000) and a
general aggregate limit of Fifteen Million Dollars ($15,000,000) for bodily injury,
personal injury and property damage;
Or alternatively, (2) Fifteen Million Dollars ($15,000,000) per person for bodily injury
and Ten Million Dollars ($10,000,000) 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
performing Work or rendering services on behalf of OCSD in connection with the
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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. Course of Construction: OCSD will provide course of construction insurance, or self-
insurance, at its sole expense, outside the terms of this Contract.
Course of Construction CONTRACTOR Obligation: CONTRACTOR shall be
responsible, at its own expense, for the first Ten Thousand Dollars ($10,000) of each
occurrence including court costs, attorney fees, costs of defense and loss payouts,
for Course of Construction loss.
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
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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,
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
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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 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
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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.
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
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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
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.
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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 et. seq., regarding resolution of construction claims for any Claims which
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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
Copy to: Bradley R. Hogin, Esquire
Woodruff, Spradlin & Smart
555 Anton Boulevard
Suite 1200
Costa Mesa, California 92626
TO CONTRACTOR: Shimmick Construction Company, Inc.
16481 Scientific Way
Irvine, CA 92618
Copy to: W. Andrew Sloane, III
Shimmick Construction Company, Inc.
16481 Scientific Way
Irvine, CA 92618
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IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the
date first hereinabove written.
CONTRACTOR: Shimmick Construction Company, Inc.
16481 Scientific Way
Irvine, CA 92618
By
Printed Name
Its
CONTRACTOR's State License No. 594575 (Expiration Date — 05/31/2020)
OCSD: Orange County Sanitation District
By
David John Shawver
Board Chairman
By
Kelly A. Lore
Clerk of the Board
By
Marc Dubois
Contracts, Purchasing and Materials
Management Manager
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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."
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.
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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
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
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 et. 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
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
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
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
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
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
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
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
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 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
C-EXA-080414
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
Page 7 of 8
ATTACHMENT 2 —SCHEDULE OF PRICES
See next pages for Bid Submittal Forms (Shimmick Construction Company Inc.)
BF-14 SCHEDULE OF PRICES, Page 1 - 2
C-EXA-080414
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
Page 8 of 8
Bid Submitted By: Shinunick Construction Company Inc.
(Name of Firm)
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 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,
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
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
Page 1 of 2
Bid Submitted By: Shimmick Construction Company, Inc.
(Name of Firm)
EXHIBIT A
SCHEDULE OF PRICES
BASE BID ITEMS (Refer to Note 1 in the Instructions):
Item Des iptio Unit of Measurement Extended Price
No. ��I iinuck Construction Company.Inc
1 Mobilization as described in Division 01, Section 01155 and in conformance with the Contract Lump Sum $ 2,600,000
Documents for the lump sum price of...
2 Sheeting, Shoring and Bracing as described in Division 01, Section 01155 and in Lump Sum $ 3f oab) 000. 00
conformance with the Contract Documents for the lump sum price of...
3 All Other Portions of the Work set forth in the Contract Documents except for the Work
performed in Item Nos 1, 2 and 4 inclusive, as described in Division 01, Section 01155 and in Lump Sum o�dOo, it)
conformance with the Contract Documents for a lump sum price of...
4 Demobilization including final progress payment, clean-up and restoration of the project site as
described in Division 01, Section 01155 and in conformance with the Contract Documents for a Lump Sum $ 1,000,000
lump sum price of...
TOTAL AMOUNT OF BID (BASIS OF AWARD) $ Za°r yO y v o
BF-14 SCHEDULE OF PRICES C-BF-121817
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
Page 2 of 2
OPERATIONS COMMITTEE Meeting Date To Dir.
12/05/18 12/2/19/18
AGENDA REPORT Item Number Item Number
12
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT
NO. 2, PROJECT NO. P2-123
GENERAL MANAGER'S RECOMMENDATION
Approve a budget increase of $7,250,000 for Return Activated Sludge Piping
Replacement at Activated Sludge Plant No. 2, Project No. P2-123, for a total budget of
$20,000,000.
BACKGROUND
The Oxygen Activated Sludge Secondary Treatment Plant at Plant No. 2 has been in
service since the early 1980s in a corrosive environment next to the ocean. The original
concrete and steel require refurbishment and/or replacement. Three projects are
designing complimentary improvements to the process area.
The Return Activated Sludge Piping Replacement at Plant No. 2, Project No. P2-123, is
currently in the design phase. The project was scoped to replace approximately 1,800
feet of corroded steel pipe. Several factors identified in design have increased the
estimated construction complexity and the associated cost of the pipe replacement effort
for a budget impact of$4,450,000.
Activated Sludge Aeration Basin Deck Repair at Plant No. 2, Project No. P2-118, recently
completed a construction contract to repair cracked and spalled concrete that pose
oxygen safety threats and are likely to reduce the life of the concrete decks. The crack
and spall repair methods were very effective; however, the engineer's estimate for the
amount of required crack and spall repair was approximately one-third of the total needed.
Rather than triple the construction contract on a change order basis, staff had intended
to finish the work on a second construction contract with an estimated cost of$2,000,000.
The Activated Sludge Basin Lighting Repair at Plant No. 2, Project No. FE18-04, was
created to replace 92 exterior light poles and fixtures, with an estimated construction cost
of $800,000. The light poles are corroded to the point where some light fixtures have
fallen, posing an immediate threat to operators. The poles will be replaced with a pivoting
base that allows the fixture to be lowered for servicing at deck height, eliminating the use
of ladders that create a potential fall hazard.
The project would absorb construction for Project Nos. P2-118 and FE18-04 at an
estimated cost of $2,800,000. This, along with the higher costs for Return Activated
Sludge Piping Replacement, would require a total budget increase of $7,250,000.
Page 1 of 4
RELEVANT STANDARDS
• Ensure the public's money is wisely spent
• 24/7/365 treatment plant reliability
PROBLEM
The complexity of the return activated sludge steel pipe replacement is more difficult to
construct than the predesign estimate anticipated and additional isolation valves at each
basin are requested. The budget for Return Activated Sludge Piping Replacement at
Activated Sludge Plant No. 2, Project No. P2-123, is not sufficient for the now-higher
estimated construction cost.
The construction phases of the three projects (P2-123, P2-118, and FE18-04) are
scheduled to occur in the same time frame and in the same area. The work, therefore,
must be carefully coordinated due to overlapping shutdown requirements and sequencing
constraints.
PROPOSED SOLUTION
Combine the construction execution of Project Nos. P2-123, P2-118, and FE18-04 into
P2-123 to reduce coordination risk and improve efficiency. Increase the project budget
of the Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 2,
Project No. P2-123, by $7,250,000 for a total budget of $20,000,000. No future
construction contracts would be executed under Project Nos. P2-118 and FE18-04.
TIMING CONCERNS
Without additional project funds, not all the work can be completed. The loss of a section
of piping could also lead to a short-term loss of operational flexibility in the aeration basin
facilities.
RAMIFICATIONS OF NOT TAKING ACTION
Not approving this project increase will prevent award of a construction contract for the
repair work as currently designed. Additional design costs and greater risks to operations
would be required to decrease the construction costs.
PRIOR COMMITTEE/BOARD ACTIONS
June 2018 —Approved a reduced project budget of $12,750,000 for the Return Activated
Sludge Piping Replacement at Plant No. 2, Project No. P2-123, through the Fiscal Years
2018-2019 and 2019-2020 budget.
April 2017 - Established a project for Return Activated Sludge Piping Replacement at
Plant No. 2, Project No. P2-123, with a budget of $15,000,000.
Page 2 of 4
ADDITIONAL INFORMATION
The original budget for Project No. P2-123 was based on construction cost estimates
developed during the scoping phase of the project, which also included replacement of
Waste Activated Sludge piping. During project development, the Waste Activated Sludge
piping was determined to be in good condition, allowing it to remain in place. This reduced
the estimated construction cost from $9,500,000 to $7,000,000. The project budget was
reduced in the Fiscal Years 2018-2019 and 2019-2020 budget approved by the Board in
June 2018. The construction cost estimate developed after further design development
totaled $11,200,000, approximately $4 million more than the earlier estimate.
Construction costs increased due to the complexity of construction and provisions to add
new valves to allow isolation of individual clarifier basins.
The budget impact of this higher construction estimate is $4,450,000 for the original
scope, plus $2,800,000 for the concrete and lighting repair scopes.
CEQA
This project is exempt from CEQA under the Class 1 categorical exemptions set forth in
California Code of Regulations Section 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." The project consists of minor alterations to
existing public facilities.
A Notice of Exemption for this project was filed and recorded with the County of Orange
on March 29, 2018, and 180-day statute of limitations has passed.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted (Line item: Section 8, Page 60), but the budget
is insufficient for the recommended action. The increase in budget authority will be offset
by the following savings:
• $1,000,000 reduction to Activated Sludge Aeration Basin Deck Repair at Plant No. 2,
Project No. P2-118.
• $1,750,000 reduction to Small Construction Projects Program associated with
Activated Sludge Basin Lighting Repair at Plant No. 2, Project No. FE18-04.
• $4,500,000 reduction in Plant No. 2 Digester Facilities Rehabilitation, Project
No. P2-91-1. This reduction is a result of an unrelated reduction in the anticipated
cost of that project.
Page 3 of 4
Staff anticipates completing the three budget reductions in the upcoming Budget Update
in 2019.
Date of Approval Contract Amount Contingency
06/27/2018 $12,750,000
12/19/2018 $ 7,250,000
$20,000,000
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
N/A
RL:dm:gc
Page 4 of 4
OPERATIONS COMMITTEE Meeting Date To Dir.
12/05/18 12/2/19/18
AGENDA REPORT Item Number Item Number
13
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: SUNFLOWER AND RED HILL INTERCEPTOR REPAIR,
PROJECT NO. 7-66
GENERAL MANAGER'S RECOMMENDATION
Establish a project for Sunflower and Red Hill Interceptor Repair, Project No. 7-66, with
a budget of $5,500,000.
BACKGROUND
The Orange County Sanitation District (Sanitation District) completed construction of the
Sunflower Interceptor Reach 3 and Red Hill Interceptor Reach 4 and 5, Project No. 7-6-3,
in 1971, ranging in size from 27 inches to 84 inches in diameter. The concrete pipe
includes PVC-lining on the upper 270-degrees of the pipe section to protect the concrete
from corrosive sewer gas. PVC lining was not installed on the bottom 90 degrees
because it was expected to be covered by the liquid in the pipe, which is not corrosive to
concrete.
In 2015, as part of the Sanitation District asset management program, the pipe between
Red Hill Avenue at MacArthur Boulevard in Irvine and Sunflower Avenue at South Timber
Street in Costa Mesa was assessed for internal corrosion and lining condition. This
section also includes three siphons, but it was only possible to enter and assess one of
the three.
RELEVANT STANDARDS
• Protect Orange County Sanitation District assets
PROBLEM
The Sanitation District's assessment indicated that a significant portion of the PVC joints
had failed throughout the length of the pipe evaluated. The PVC liner also failed in the
inspected siphon and was noted to have failed in the visible portions of the other two
siphons.
Reduced wastewater flows in this reach of pipe have resulted in liquid levels dropping
below the protective 270-degree PVC lining for part of the day. During that time, the
unprotected concrete below the liner is exposed to the corrosive sewer gases.
Page 1 of 2
PROPOSED SOLUTION
Authorize a project to repair all weld strips and other PVC liner failures in accordance with
the manufacturer's installation and repair specifications. The project is expected to install
flow control measures within the pipe to artificially elevate water levels to above the
protective PVC lining to avoid exposing the concrete portion of the pipe to corrosive
conditions. Any significant concrete corrosion that currently exists will be repaired. The
project budget is based on the most cost-effective solution for repair of the lining failures
noted in the assessment and additional failures likely to be found.
TIMING CONCERNS
The concrete continues to corrode where PVC lining has failed or is not installed.
Additional corrosion could ultimately result in a structurally compromised pipe and
structural failure.
RAMIFICATIONS OF NOT TAKING ACTION
Increased risk of failure of the pipe due to continued concrete corrosion causing a sewage
spill and property damage.
CEQA
CEQA not required to establish a projected budget. CEQA requirement will be
determined prior to design.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. The costs for this project will be charged to the operating budget of Division
820. The FY18-19 and FY19-20 Division 820 operating budget is sufficient for the costs
to be incurred in those two fiscal years (Line item: Professional & Contractual Services,
Section 6, Page 76).
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
N/A
RL:dm:gc
Page 2 of 2
OPERATIONS COMMITTEE Meeting Date To Dir.
12/05/18 12/2/19/18
AGENDA REPORT Item Number Item Number
14
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: PLANT NO. 1 RECTANGULAR PRIMARY CLARIFIER OVERHAUL
GENERAL MANAGER'S RECOMMENDATION
A. Approve a Purchase Order contract to Mehta Mechanical Company Inc. for the
mechanical rehabilitation and overhaul of twenty-four (24) Primary Clarifier tanks
at Plant No. 1, per Specification No. S-2018-985BD, for a total amount not to
exceed $1,998,000; and
B. Approve a contingency of $199,800 (10%).
BACKGROUND
At Orange County Sanitation District's (Sanitation District) Plant No. 1 there are 52
rectangular primary clarifier tanks which are the work horse of the wastewater treatment
process, and their reliable operation is critical to meet both effluent treatment standards
and provide quality water to the Orange County Water District (OCWD) for reclamation.
Recently, the Sanitation District has experienced breakdowns impacting several
rectangular primary clarifier tanks affecting the ability to process wastewater efficiently
and limiting treatment flow capacity. In July 2017 the Board of Directors authorized
refurbishment of 10 of the 52 primary clarifier tanks. The remaining 42 primary clarifier
tanks will be refurbished over the next several years.
RELEVANT STANDARDS
• 24/7/365 treatment plant reliability
• Meet volume and water quality needs for the GWRS
• Maintain a proactive asset management program
PROBLEM
All influent wastewater must go through primary treatment. Due to the age and worn
condition of the mechanical components associated with the rectangular primary
clarifiers, refurbishment is required. There is an increasing risk of having to divert flow
from Plant No. 1 to Plant No. 2 due to the increasing potential for some of the primary
clarifiers not being available, which would result in a reduction in the amount of flows
available to the Groundwater Replenishment System (GWRS).
Page 1 of 3
Additionally, the primary clarifiers must operate at an increased reliability level to
support upcoming CIP projects that place greater reliance on the Plant No. 1 primary
clarifiers for treatment during construction of these projects.
PROPOSED SOLUTION
Staff recommends approval of a mechanical overhaul and rehabilitation of twenty-four
(24) rectangular primary clarifier tanks at Plant No. 1.
TIMING CONCERNS
CIP projects P1-133 and P2-98, which will begin construction in 2021, will place a
greater emphasis and reliance on the rectangular primary clarifiers at Plant No. 1.
Refurbishment of the rectangular primary clarifiers should be completed before this
time.
RAMIFICATIONS OF NOT TAKING ACTION
Failure to take action will impact the Sanitation District's readiness to treat primary
treatment flows which will potentially delay or lengthen the duration of upcoming CIP
projects that are dependent on reliable primary treatment capacity during their
construction periods, as well as our ability to support the ability to supply the desired
quantity of effluent water to the GWRS.
PRIOR COMMITTEE/BOARD ACTIONS
June 2017 - Approved a Purchase Order to Frost Company for the mechanical
rehabilitation and overhaul of ten (10) Primary Clarifier tanks at Plant No. 1 .
ADDITIONAL INFORMATION
The Sanitation District issued a Notice Inviting Bids on September 27, 2018 for the
mechanical rehabilitation and overhaul of twenty-four (24) Primary Clarifier tanks at
Plant No. 1 , per Specification No. S-2018-98513D. Four (4) sealed bids were received
on November 13, 2018. The bids were evaluated in accordance with the Sanitation
District's policies and procedures. Summary information of the bids received is as
follows:
Bidder Amount
Mehta Mechanical Company Inc. $1,998,000
Tharsos Inc. $2,029,920
Spiess Construction Co. $2,086,400
California Building Evaluation & $2,708,000
Construction Inc.
Page 2 of 3
Staff recommends awarding a purchase order contract to the lowest responsive and
responsible bidder, Mehta Mechanical Company Inc., for the mechanical rehabilitation
and overhaul of twenty-four (24) primary clarifier tanks.
A contingency of 10% is recommended because of the potential for additional work
required resulting from operating constraints and seasonal wet weather occurrences.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the FY18/19 and FY19/20 Operating
Budget, Division 870, Plant No. 1 Maintenance (Section 6, Page 92, Line item: Repairs
and Maintenance).
Date of Approval Contract Amount Contingency
12/19/2018 $1,998,000 $199,800 (10%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
N/A
Page 3 of 3
OPERATIONS COMMITTEE Meeting Date To Bd. of Dir.
12/05/18 ---
AGENDA REPORT Item Number Item Number
15 --
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenances
SUBJECT: ODOR AND CORROSION CONTROL PRESENTATION
GENERAL MANAGER'S RECOMMENDATION
Information Only.
BACKGROUND
Each month, staff provides an information presentation on topics of interest to the Board
of Directors. This month's topic: Odor and Corrosion Control.
RELEVANT STANDARDS
• 24/7/365 treatment plant reliability
• Operate and maintain facilities to minimize impacts on surrounding communities,
including odor, noise, and lighting
• Meet volume and water quality needs for the GWRS
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
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Page 1 of 1
ORANGE COUNTY SANITATION DISTRICT
COMMON ACRONYMS
Association of California Local Agency Formation Regional Water Quality
ACWA Water Agencies LAFCO Commission RWQCB 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
CARB California Air Resources NEPA National Environmental SCADA Supervisory Control And
Board Policy Act 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
CRWQCB California Regional Water OCCOG Orange County Council of SSMP Sewer System
Quality Control Board Governments Management Plan
CWA Clean Water Act OCHCA Orange County Health Care SSO Sanitary Sewer Overflow
Agency
CWEA California Water Environment OCSD Orange County Sanitation SWRCB State Water Resources
Association District Control Board
EIR Environmental Impact Report OCWD Orange County Water District TDS Total Dissolved Solids
EMT Executive Management Team OOBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load
EPA US Environmental Protection OSHA Occupational Safety and TSS Total Suspended Solids
Agency Health Administration
Professional Waste Discharge
FOG Fats, Oils, and Grease PCSA Consultant/Construction WDR Requirements
Services Agreement
gpd gallons per day PDSA Professional Design Services WEF Water Environment
Agreement Federation
GWRS Groundwater Replenishment POTW Publicly Owned Treatment WERF Water Environment&
System Works Reuse Foundation
ICS Incident Command System ppm parts 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 RFP Request For Proposal WRDA Water Resources
Development 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 (D/T) —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 effect").
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.