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HomeMy WebLinkAbout12-06-2017 Operations Committee Meeting Agenda Packet Orange County Sanitation District Wednesday, December 6, 2017 Regular Meeting of the 5:00 P.M. OPERATIONS COMMITTEE - Administration Building Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA CALL TO ORDER PLEDGE OF ALLEGIANCE DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a Speaker's Form(located at the table outside of the Board Room)and submit it to the Clerk of the Board ornotify 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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.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 November 1, 2017 Operations Committee Meeting. 2. ANNUAL CCTV CONTRACT WITH FOUR ADDITIONAL RENEWALS TO COMPLY WITH SSMP REQUIREMENTS (Ed Torres) RECOMMENDATION: Recommend to the Board of Directors to: A. Award Service Contracts for annual CCTV Sewer Inspection Services to two (2) contractors; Hoffman Southwest Corp. (Primary)and Performance Pipeline Technologies (Secondary), for a total amount not to exceed $350,000 for the 12 06/2017 Operations Committee Agenda Page 1 of 5 period February 1, 2018 through January 31, 2019, with four (4) one-year renewal options; and B. Approve a contingency of$35,000 (10°/%). 3. FLEET VEHICLE PROCUREMENT THROUGH COOPERATIVE PROCUREMENT WITH NATIONAL AUTO FLEET GROUP (Ed Torres) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve the purchase of ten (10) vehicles as listed below using the National Joint Powers Alliance (NJPA) cooperative Contract Number 120716-NAF with National Auto Fleet Group for a total amount not to exceed $286,809 in accordance with Ordinance No. OCSD-47, Section 2.03(B), Cooperative Purchases: 1. Five (5) new/unused 2018 Ford F-150 (X1C)XL 2WD SuperCab 8' Box $149,813.49; 2. Three (3) new/unused 2018 Ford C-Max Hybrid (P5A) SE FWD $79,040.79; 3. One (1) new/unused 2018 Ford Fusion Energi (POP) SE FWD $32,667.96; 4. One (1) new/unused 2018 Ford Transit Connect Van (S6E) XL SWB with Rear Symmetrical Doors $25,286.82; and B. Approve a contingency of$7,170 (2.5%). 4. PURCHASE OF SIX VAPEX SENTINEL S4 UNITS (Ed Torres) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a sole source Purchase Order to VAPEX ENVIRONMENTAL TECHNOLOGIES for six VAPEX Sentinel S4 units (three units for Plant No. 1 and three units for Plant No. 2)for a total amount not to exceed $290,636; and B. Approve a contingency of$14,532 (5e/%). 5. TWELVE-INCH HOSE REEL AND TRAILER (Ed Torres) RECOMMENDATION: Recommend to the Board of Directors to: A. Award a sole source purchase order of twelve-inch lay flat sewer hose with mobile trailer to West Coast Safety Supply Co., Inc. for a total cost of$313,907; and B. Approve a contingency amount of$29,000 (-10%). 12 06/2017 Operations Committee Agenda Page 2 of 5 6. TIFFANY PUMP STATION ODOR CONTROL FACILITY (Ed Torres) RECOMMENDATION: Recommend to the Board of Directors to: Approve a Site Access and License Agreement with the Garden Grove Sanitary District (GGSD) to allow utilization of an odor control chemical dosing station and injection of chemicals into the Miller-Holder Interceptor at 12782 Bailey Street in the city of Garden Grove, in a form approved by Special Counsel. 7. SAFETY IMPROVEMENTS PROGRAM, PROJECT NO. J-126 (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: A. Award a Construction Contract to AMTEK Construction for the Safety Improvements Program, Contract No. J-126 A and H, for a total amount not to exceed $452,757; and B. Approve a contingency of$45,276 (10%). 8. EDINGER PUMP STATION REHABILITATION STUDY (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a Professional Services Agreement with Lockwood, Andrews R Newnam, Inc., to provide engineering services for the Edinger Pump Station Rehabilitation Study, Project No. PS15-02, for an amount not to exceed $505,042; and B. Approve a contingency of$50,504 (10%). NON-CONSENT: 9. BAY BRIDGE PUMP STATION AND FORCE MAINS REPLACEMENT PROJECT, PROJECT NO. SP-178 (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: A. Consider, receive, and file the Final Environmental Impact Report for the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. SP-178, dated December 2017; and B. Adopt Resolution No. OCSD 17-XX, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Adopting the Environmental Impact Report for the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. SP-178; Adopting the Mitigation Monitoring and Reporting Program; and Approving the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. SP-178." 12/06/2017 Operations Committee Agenda Page 3 of 5 10. 2017 FACILITIES MASTER PLAN (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 17-XX entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Adopting the 2017 Facilities Master Plan as the Orange County Sanitation District's New Master Plan for Future Capital Planning and Repealing Resolution No. OCSD 09-18." INFORMATION ITEMS: 11. ORANGE COUNTY SANITATION DISTRICT RATE PROGRAM (Lorenzo Tyner) 12. HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE REALIGNMENT PROGRAM, PROJECT NO. PI.128 (Rob Thompson) DEPARTMENT HEAD REPORTS: CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Operations Committee meeting is scheduled for Wednesday, February 7, 2018 at 5:00 p.m. 12/06/2017 Operations Commidee Agenda Page 4 of 5 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 Clerk of the Board (714)593-7433 klore4ocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherbem84ocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rahirelli(ftcsd.com Director of Engineering Rob Thompson (714)593-7310 rthompsonOmsd.com Director of Environmental Jim Colston (714)593-7450 icolston6ilocsd.com Services Director of Operations& Ed Torres (714)593-7080 etomesG4ocsd.com Maintenance 12 06/2017 Operations Committee Agenda Page 5 of 5 ITEM NO. 1 MINUTES OF THE OPERATIONS COMMITTEE Orange County Sanitation District Wednesday, November 1, 2017, 5:00 p.m. A regular meeting of the Operations Committee was called to order by Board Chair Sebourn on Wednesday, November 1, 2017 at 5:00 p.m. in the Administration Building. Board Chair Sebourn led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Denise Barnes Jim Herberg, General Manager Allan Bernstein Celia Chandler, Director of Human Resources Robert Collacott Jim Colston, Director of Environmental Services Brooke Jones (Alternate) Rob Thompson, Director of Engineering Steve Jones Ed Torres, Director of Operations & Maintenance Sandra Massa-Lavitt (Alternate) Lorenzo Tyner, Director of Finance & Richard Murphy Administrative Services Tim Shaw Tina Knapp, Deputy Clerk of the Board Fred Smith Cindi Ambrose Mariellen Yarc Jennifer Cabral Greg Sebourn, Board Chair Dean Fisher David Shawver, Board Vice-Chair Alfredo Garcia Kathy Millea COMMITTEE MEMBERS ABSENT: Jeff Mohr John Withers, Chair Man Nguyen Michelle Steel Ddaze Phuong Victoria Pilko Tyler Ramirez Jim Spears Eros Yong OTHERS PRESENT: Brad Hogin, General Counsel Bob Ooten, Alternate Director (CMSD) Dan Bunce, Brown and Caldwell PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: Board Chair Sebourn did not provide a report. 11/01/2017 Operations Commktee Minutes Page 1 of 6 REPORT OF GENERAL MANAGER: General Manager Jim Herberg did not provide a report. The video regarding the OCSD Capital Improvement Program (CIP)was not shown. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED. SECONDED. and DULY CARRIED TO: Approve Minutes of the October 4, 2017 Operations Committee Meeting. AYES: Barnes, Bernstein, Collacott, B. Jones (Alternate), S. Jones, Murphy, Sebourn, Shawver, F. Smith and Yarc NOES: None ABSTENTIONS: None ABSENT: Massa-Lavitt (Alternate), Shaw, Steel, Withers 2. QUARTERLY ODOR COMPLAINT REPORT (Ed Torres) MOVED, SECONDED, and DULY CARRIED TO: Receive and file the Fiscal Year 2017/18 First Quarter Odor Complaint Summary. AYES: Barnes, Bernstein, Collacott, B. Jones (Alternate), S. Jones, Murphy, Sebourn, Shawver, F. Smith and Yarc NOES: None ABSTENTIONS: None ABSENT: Massa-Lavitt (Alternate), Shaw, Steel, Withers 3. 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, 2017. AYES: Barnes, Bernstein, Collacott, B. Jones (Alternate), S. Jones, Murphy, Sebourn, Shawver, F. Smith and Yarc NOES: None ABSTENTIONS: None ABSENT: Massa-Lavitt (Alternate), Shaw, Steel and Withers 11V/2o17 Operations Committee Minutes Page 2 of 6 4. RECTANGULAR PRIMARY CLARIFIER RELIABILITY STUDY AT PLANT NO. 1, PROJECT NO. PS 16-04 (Rob Thompson) MOVED SECONDED. and DULY CARRIED TO: A. Approve a Task Order with RMC Water and Environment, FE15-00-06, to provide engineering design services for the Rectangular Primary Clarifier Reliability Study at Plant No. 1, Project No. PS 16-04, for an amount not to exceed $156,518; and B. Approve a contingency in the amount of$16,000 (10.2%). AYES: Barnes, Bernstein, Collacott, B. Jones (Alternate), S. Jones, Murphy, Sebourn, Shawver, F. Smith and Yarc NOES: None ABSTENTIONS: None ABSENT: Massa-Lavitt (Alternate), Shaw, Steel and Withers 5. NEWHOPE-PLACENTIA TRUNK REPLACEMENT, PROJECT NO. 2-72 (Rob Thompson) MOVED SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: Approve a Cooperative Agreement between the Orange County Sanitation District and the City of Anaheim for paving, landscaping, and sewer improvements on State College Boulevard along portions of the Newhope-Placentia Trunk Replacement, Segment B, Project No. 2-72B, for an estimated amount of$802,000 to be reimbursed by the City of Anaheim. AYES: Barnes, Bernstein, Collacott, B. Jones (Alternate), S. Jones, Murphy, Sebourn, Shawver, F. Smith and Yarc NOES: None ABSTENTIONS: None ABSENT: Massa-Lavitt (Alternate), Shaw, Steel and Withers 6. SLATER PUMP STATION VALVE REPLACEMENTS, PROJECT NO. FE16-14 (Rob Thompson) MOVED SECONDED. and DULY CARRIED TO: A. Delegate authority to the General Manager to approve Task Order FE15- 00-01-03 with Dudek to provide engineering design services for the Slater Pump Station Valve Replacements, Project No. FE16-14,for an amount not to exceed $175,500; and B. Approve a contingency in the amount of$24,500 (14%). AYES: Barnes, Bernstein, Collacott, B. Jones (Alternate), S. Jones, Murphy, Sebourn, Shawver, F. Smith and Yarc 11/01/2017 Operations Committee Minutes Page 3 of NOES: None ABSTENTIONS: None ABSENT: Massa-Lavitt (Alternate), Shaw, Steel and Withers Director Shaw arrived at 5:02 p.m. Alternate Director Massa-Lavitt arrived at 5:05 p.m. NON-CONSENT CALENDAR: 7. DIGESTER GAS FACILITIES REHABILITATION, PROJECT NO. J-124 (Rob Thompson) Engineering Manager Jeff Mohr provided a PowerPoint presentation that gave an overview of the project objectives, consultant selection, negotiation approach, and summary of major negotiated changes. MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Design Services Agreement with Brown and Caldwell to provide engineering design services for the Digester Gas Facilities Rehabilitation, Project No. J-124, for an amount not to exceed $11,770,000; and B. Approve a contingency of$1,177,000 (10%). AYES: Barnes, Bernstein, Collacott, B. Jones (Alternate), S. Jones, Massa-Lavitt (Alternate), Murphy, Seboum, Shaw, Shawver, F. Smith and Yarc NOES: None ABSTENTIONS: None ABSENT: Steel and Withers 8. SOLE SOURCE PURCHASE OF ATEFC MOTOR CLOSE COUPLED PUMP #2 FOR STEVE ANDERSON LIFT STATION (Ed Torres) Director of Operations & Maintenance Ed Torres provided background information relative to this item. MOVED. SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Sole Source Purchase Order Contract to Flo-Systems, Inc. for the purchase of a Totally Enclosed Fan Cooled (TEFC) Motor Close Coupled Pump from Hidrostal for$211,260, delivered, plus applicable sales tax, for the Steve Anderson Lift Station; and B. Approve a contingency for Flo-Systems, Inc. of$21,126 (10%). 11/01/2017 Operations committee Minutes Page 4 of 6 AYES: Barnes, Bernstein, Collacott, B. Jones (Alternate), S. Jones, Massa-Lavitt (Alternate), Murphy, Seboum, Shaw, Shawver, F. Smith and Yarc NOES: None ABSTENTIONS: None ABSENT: Steel and Withers Director Shaw left the Board Room at 5:07 p.m. 9. LUBRICATION PROGRAM ASSESSMENT (Ed Torres) Mr. Torres provided background information relative to this item. MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Purchase Order Contract with Noria Corporation for Lubrication Program Assessment, Spec No. CS-2017-821, for an amount not to exceed $189,584; and B. Approve a contingency of$37,917 (20%). AYES: Barnes, Bernstein, Collacott, B. Jones (Alternate), S. Jones, Massa-Lavitt (Alternate), Murphy, Seboum, Shawver, F. Smith and Yarc NOES: None ABSTENTIONS: None ABSENT: Shaw, Steel and Withers Director Shaw returned to the Board Room at 5:08 p.m. 10. PLANT NO. 1 CONTROL CENTER UPS REPLACEMENT, PROJECT NO. MP-234 (Ed Torres) MOVED. SECONDED. and DULY CARRIED TO: A. Approve a Purchase Order contract for the purchase and installation of an uninterruptible power supply (UPS) system for the Plant No. 1 Control Center using the U.S. Communities Master Agreement No. MA-IS- 1340234-4 to Graybar Electric, for an amount not to exceed $104,704; and B. Approve a contingency of$20,941 (20%). AYES: Barnes, Bernstein, Collacott, B. Jones (Alternate), S. Jones, Massa-Lavitt (Alternate), Murphy, Seboum, Shaw, Shawver, F. Smith and Yarc NOES: None ABSTENTIONS: None ABSENT: Steel and Withers 11 01/2017 Operations Committee Minutes Page 5 of 6 INFORMATION ITEMS: None. DEPARTMENT HEAD REPORTS: Mr. Torres reported that, over the last two years, multiple agencies (including OCSD) have received calls regarding coastal odors from the Long Beach, Seal Beach, and Huntington Beach areas. Reports that are received that may potentially involve OCSD are investigated; however, there seem to be ongoing issues in certain areas that are unrelated to OCSD. Mr. Torres indicated that OCSD has joined a multi-agency taskforce that is researching these odor issues. This month, the City of Huntington Beach City Council created an Ad Hoc Committee to research these odor complaints and OCSD will cooperate with this committee. Mr. Torres confirmed OCSD's continued commitment to researching this issue. Board Chair Sebourn recommended that OCSD continue to be engaged and involved in researching this matter. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT Board Chair Sebourn declared the meeting adjourned at 5:16 p.m. to the next scheduled meeting of Wednesday, December 6, 2017 at 5:00 p.m. Submitted by, Tina Knapp, CMC Deputy Clerk of the Board 11/01/2017 Operations Committee Minutes Page 6 of 6 OPERATIONS COMMITTEE Meeting Date TOBd.Of Dir. 12J05/17 12/20/17 AGENDA REPORT IWrnNumber Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: ANNUAL CCTV CONTRACT WITH FOUR ADDITIONAL RENEWALS TO COMPLY WITH SSMP REQUIREMENTS GENERAL MANAGER'S RECOMMENDATION A. Award Service Contracts for annual CCTV Sewer Inspection Services to two (2) contractors; Hoffman Southwest Corp. (Primary) and Performance Pipeline Technologies (Secondary), for a total amount not to exceed $350,000 for the period February 1, 2015 through January 31, 2019, with four(4)one-year renewal options; and B. Approve a contingency of$35,000 (10%). BACKGROUND Sewer inspection and condition assessments are two of the Orange County Sanitation District's (Sanitation District) major preventive maintenance tasks in the approved Sewer System Management Plan (SSMP). The Sanitation District has committed to inspect the entire sewer system per industry (NASSCO) standards every five years. This data is the most critical tool the Sanitation District has in assessing the sewer system condition and preventing catastrophic pipeline failures. The Sanitation District also uses the CCTV data to optimize the cleaning and repairing of the most degraded pipelines,safeguarding public health. RELEVANT STANDARDS • Maintain a proactive asset management program • Maintain a culture of improving efficiency • Protection of Orange County Sanitation District assets PROBLEM The current CCTV contract is on the last renewal cycle and will expire at the end of the 2017 calendar year. Without a new contract in place, the CCTV asset management program will fall behind. Page 1 of 3 PROPOSED SOLUTION The award recommendation is to award to two (2) Contractors (primary & secondary), which will provide continuous service reliability and competitive pricing to the Sanitation District. Staff recommends awarding two CCTV Contracts to the two lowest responsive and responsible bidders, Hoffman Southwest Corp. (Primary) and Performance Pipeline Technologies (Secondary). TIMING CONCERNS A new contract must be in place by January 2018 to avoid program disruptions. RAMIFICATIONS OF NOT TAKING ACTION Without new CCTV contract, the Sanitation District will be out of compliance with the SSMP. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION A Notice Inviting Bids for CCTV Sewer Inspection Services was issued and eight bids were received. The award recommendation is for the two lowest responsive and responsible bidders, Hoffman Southwest Corp. and Performance Pipeline Technologies. Bidders List: Vendor Bid Amount Submit Date Hoffman Southwest Corp. $314,560 11/14/17 10:25 AM Performance Pipeline $352,900 11/14/17 11:18 AM Downstream Services, Inc. $395,960 11/14/17 1:02 PM Innerline Engineering, Inc. $403,540 11/14/17 3:26 PM AIMS/PVIC CA, LLC. $626,350 11/14/17 8:12 AM National Plant Services, Inc. $742,500 11/14/17 11:57 AM Empire Pipe Cleaning $837,290 11/14/17 1:41 PM Pipe and Plant Solutions, Inc. $2,147,500 1 11/14/17 1:35 PM CECA 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 (FY 17-18 Line item: Section 6, Page 76). Project contingency funds will be used for this contract. Date of Approval contract Amount Contingency 12/20/2017 $350,000 $35,000 (10%) ATTACHMENT The following affachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: Draft Service Contract (same draft for both contractors) Page 3 d 3 SERVICE CONTRACT CCTV Sewer Inspection Services Specification No. S-2017.892BD 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 C r Inspection Services"Services" as described in Exhibit"A; and WHEREAS, OCSD has chose Co t�onduct Services in accordance wit once No. OCSD-47; 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. Exhibits to this Contract are as follows in order of precedence: Exhibit "A" Scope of Work Exhibit 'B" Bid Price Form 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. Orange County Sanitation District 1 of 9 Specification No. S-2017-8928D Version 052217 1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any paragraph or provision hereof. 1.6 The term "days", when used in the Contract, shall mean calendar days, unless otherwise noted as business days. 1.7 OCSD holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 The term "hours', when used in this Contract, shall be as defined in Exhibit"A". 1.9 Contractor shall provide OCSD with all required prer�n yms and/or overtime work at no charge beyond the price provided under"CompensaticAelow. 1.10 Except as expressly provided oth OCSD accepts no liability for any expenses, losses, or action incurred or, by Contractor as a result of work performed in anticipation of purchases of sa sew by OCSD.2. Compensation Compensation to be paid by OCSD to Colwa``_ices provided under this Contract shall be a total amount not exce� Dollars �(S .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 during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq, Contractor and its subcontractors shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, ork is subject to compliance monitoring and enforcement by the DIR. 3.2 r r and its subcontractors shall maintain accurate payroll records and shall o aII the provisions of Labor Code Section 1776, and shall submit payroll records Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non- pliance 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. Orange County Sanitation District 2 of 9 Specification No. S-2017-8928D Version 052217 4.2 Invoices shall be emailed by Contractor to OCSD Accounts Payable at APStaff(o.00SD.com and "INVOICE" with the Purchase Order Number and Specification No. S-2017-892BD shall be referenced in the subject line. 5. Audit Rights Contractor agrees that, during the term of this Contract and for a period of Three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract. 6. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Services identified in Exhibit"K. Contractor shall perform said Services in accordance with generally accepted industry and professional standards. 7. Modifications to Scope of Work Requests for m0ifications to the Scope o hereunder can be made by OCSD at any time,pll modifications must be ma 'no and signed by both Parties. 8. Contract Term The Service nder this Contract shally&o�t in three hundred sixty-five (365)calendar d effective 9. Renewals i y 9.1 OCSD may exercise ttf option to renew this Contract for up to four (4) one-year periods based upon thgWteria 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. 10 9.2 This Contract may be rene�OCSD Purchase Order. 10. Extensions The ract may be extended only by written instrument signed by both Parties. 11. Perfo Time of the essence in the performance of the provisions hereof. 1 12 reserves the right to terminate this Contract for its convenience, with or without se, 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 Orange County Sanitation District 3 of 9 Specification No. S-2017-8928D Version 052217 if total amount of compensation exceeds the amount authorized under this Contract. 12.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the termination of this Contract, whichever occurs first. 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 teration 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. Exce t as to the sole active negligence of th willful misconduct of OCSD, Contractor I indemnify, protect, defend and hold harmless OCSD, its elected and appointed o Is ities, , officers, agents and employees, from and against any and all claims, liabil la Vs 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 and Human Resources Policies OCSD requires all 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 and Human Resources Policies found at: OCSD.com, "Doc Central" (bottom of page), under "Safety". OCSD's Safety Standards and Human Resource Policies are hereby incorporated by reference as though fully set forth herein in Exhibit"D". Orange County Sanitation District 4 of 9 Specification No. S-2017-8928D Version 052217 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. 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 Majeure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of governmen or any gLher cause beyond its control, but said party shall use reasonable efforts to e the ent of the delay. Work affected by a Force Majeure condition may be r d by mutual consent or may be eliminated from the Contract. - 18. Freight (F.O.B. Destination)Mok-r0at assumes full responsibility for all tran1 tation, 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. Regulatory 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. 21.1%OI ses. Permits. Ordinances and Regulations Contractor represents and warrants to D 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 Reaulations 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 — 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 Orange County Sanitation District 5 of 9 Specification No. S-2017-8928D Version 052217 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. 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 Stale of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each project site,which shall be made av 'lable to1ny interested party upon request. 23.3 Forfeiture For Violation—Contractor shaky naltyto�—OCSD,forfeit fifty dollars ($50.00) for each calendar day or port thereof fo ion re 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 witYrSection 1775 of the Labor Code of the State of California. t 23.4 Apprentices—Sections t777.5, 1777.6, 1777.W the Labor Code of the State of California, regarding the employment of apprentices are pplicable 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 o Jr his Contract, not more than eight(8)hours shall constitute a day's work, and the Contractor shall not require more than eight(8)hours of labor in a day from any person employed by it hereunder. Contractor shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at seq.)of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of twenty-five dollars ($25.00)for each worker employed in the execution of this Contract by Contractor or any subcontractor for each calendar day during which any worker is required or permitted to 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. Orange County Sanitation District 6 of 9 Specification No. S-2017-8928D Version 052217 24. South Coast Air Quality Manaaement 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. Governina 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 contir�Iing waiver by such party of any other provision or of any subsequent breach or vimion 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 remedigp available in law or equity, if the Contractor fails to make delivery of the goods or Servic€s 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 amcW 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 at 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-2017-8928D Version 052217 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 eff t of such invalidity shall be to substantially frustrate the expectations of the Parties. 32. Damage to OCSD's Property Any of OCSD's property damaged by Contractor, any subcontractors or by the personnel of either will be subject to repairoor replacement by Contractor at no cost to OCSD. 33. Disclosure Contractor agrees not to disclose, to anylhird party, data or information generated from this project without the prior written consent fronilipCSD. 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. ny Pa Ri hts Nothing in this Contract shall be construed to give any rights or benefits one 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. 36. 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-2017-8928D Version 052217 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: Larry Roberson Senior Contracts Administrator Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, A 9271]8 m Contractor: Contact Na , Contact Title Company Name Street Address City, State, Zip Code Each party shall provid�ther party written notice of a h 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: Chair, Board of Directors Dat 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-2017-8928D Version 052217 OPERATIONS COMMITTEE Meeting Date TOBd.Ot Dir. 12/05/17 12/20/17 AGENDA REPORT emNumber Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations & Maintenance SUBJECT: FLEET VEHICLE PROCUREMENT THROUGH COOPERATIVE PROCUREMENT WITH NATIONAL AUTO FLEET GROUP GENERAL MANAGER'S RECOMMENDATION A. Approve the purchase of ten (10)vehicles as listed below using the National Joint Powers Alliance (NJPA) cooperative Contract Number 120716-NAF with National Auto Fleet Group for a total amount not to exceed $286,809 in accordance with Ordinance No. OCSD47, Section 2.03(B), Cooperative Purchases: 1. Five (5) new/unused 2018 Ford F-150 (X1C) XL 2WD SuperCab 8' Box $149,813.49; 2. Three (3)new/unused 2018 Ford C-Max Hybrid (P5A)SE FWD$79,040.79; 3. One (1) new/unused 2018 Ford Fusion Energi (POP) SE FWD $32,667.96; 4. One (1) new/unused 2018 Ford Transit Connect Van (S6E) XL SWB with Rear Symmetrical Doors $25,286.82; and B. Approve a contingency of$7,170 (2.5%). BACKGROUND The Orange County Sanitation District (Sanitation District) has a fleet of over 200 vehicles, some of which are at the end of their useful life or require excessive maintenance to keep operational. The average age of the nine vehicles identified for replacement is 18 years. The average purchase cost of these vehicles was $19,398, while the average maintenance and repairs costs for these vehicles is $22,195. In addition to replacing the older vehicles, one new vehicle is being requested to support new staff additions. These purchases are in accordance with cooperative purchasing contracts with National Auto Fleet Group that the Sanitation District is approved to use per the Purchasing Ordinance Section 2.03B. The cost includes California state sales tax and freight. RELEVANT STANDARDS • Participate in National Joint Powers Authority (NJPA) cooperative purchasing program • Consider life-cycle costs in all decisions Page 1 of 3 PROBLEM This purchase is required to provide adequate support for Sanitation District operations and maintenance activities in various departments. The older vehicles experience increased maintenance costs and increased downtime due to the frequency of maintenance and repair. The average cost to maintain these vehicles is $2,800 over the average purchase price. PROPOSED SOLUTION Replace nine aging vehicles and procure one new vehicle for additional staff. RAMIFICATIONS OF NOT TAKING ACTION If these vehicles are not replaced, the Sanitation District will incur excessive maintenance costs and exposure to safety and reliability issues. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Seeking the lowest price, the Sanitation District is utilizing the NJPA agreement. The NJPA is a public agency that serves as a cooperative for over 50,000 member agencies nationally. The Sanitation District is a member of the NJPA at no cost. NJPA offers a multitude of cooperatively contracted products, equipment, and services opportunities to education and government entities throughout the country. As required by SCAQMD Rule 1191, the Sanitation District is required to purchase low emission, zero-emission, and other "green' fleet vehicles whenever possible. These requirements also dictate that the Sanitation District not"back slide"on the ratio of"green" to standard vehicles. This purchase complies with the SCAQMD requirements to maintain the current level of"green"fleet. As information, the Sanitation District has hired a fleet business expert to review our fleet business plans, practices, procedures, policies, and fleet size and composition. The draft report and business plan will be available in early January 2018. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. These items have been budgeted through the Capital Equipment Budget Summary (Fiscal Year 2017-2018 Budget Update - Appendix; Line Item: 822-Fleet Services, Pages A20—A21). Date of Approval Contract Amount Contingency 12/20/2017 $286,809 $7,170 (2.5%) Page 2 of 3 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: N/A Page 3 d 3 OPERATIONS COMMITTEE Meeting Date TOBd.Of Dir. S2J05/17 12/20/17 AGENDA REPORT IWrnNumber Item Number a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: PURCHASE OF SIX VAPEX SENTINEL S4 UNITS GENERAL MANAGER'S RECOMMENDATION A. Approve a sole source Purchase Order to VAPEX ENVIRONMENTAL TECHNOLOGIES for six VAPEX Sentinel S4 units (three units for Plant No. 1 and three units for Plant No. 2)for a total amount not to exceed $290,636; and B. Approve a contingency of $14,532 (5%). BACKGROUND The Orange County Sanitation District (Sanitation District) operates 38 VAPEX units at both plants, including 11 units at Plant No. 1 and 27 units at Plant No. 2. These units monitor and control the scrubbers for foul air treatment and include hydrogen sulfide and chlorine analyzers. RELEVANT STANDARDS • Zero odor incidents/events under normal operating conditions for Plants 1 and 2 • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting PROBLEM Six VAPEX units have been identified by Operations and Maintenance teams at both plants that are either not operating or they are in poor condition due to unavailability of spare parts. PROPOSED SOLUTION Staff recommends that the Sanitation District purchase six VAPEX Sentinel S4 units to replace the units that are in poor condition. This will prevent any potential odor complaints from the areas surrounding the treatment plants, ensure reliable foul air treatment, and optimize chemical usage at both plants. Page 1 of 2 TIMING CONCERNS Delays in replacing the six VAPEX units could increase the risk of potential odor complaints from the areas surrounding the treatment plants. RAMIFICATIONS OF NOT TAKING ACTION Replacement parts will likely not be available if the units fail, resulting in manual sampling and chemical feeding,which is labor intensive and can result in over and/or under feeding the chemicals. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION VAPEX units have been used for more than 15 years at both plants. The operations team is satisfied with their performance due to effective conditioning and moisture removal of foul air, reliability of performance, and accuracy of readings. So far, the Sanitation District has not been able to identify a reliable alternative analyzer from other manufacturers that would be able to effectively remove moisture from foul air (before introducing to analyzer) and provide stable hydrogen sulfide readings. Staff will continue to evaluate the availability of 1­12S odor sample conditioning and measurement technologies in preparation for the eventual replacement of the remaining 32 VAPEX units. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been carried over to FY17/18 from the FY15/16 budget update, Div. 870 (Line item: 1­12S Wet Gas Analyzers, Section A, Page 21). Date of Aooroval Contract Amount Contlnoencv 12/20/2017 $290,636 $14,532 (5%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A Page 2 of 2 OPERATIONS COMMITTEE Meeting Date TOBd.Of Dir. 17J05/17 12/20/17 AGENDA REPORT IWmNumber Item Number s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: TWELVE-INCH HOSE REEL AND TRAILER GENERAL MANAGER'S RECOMMENDATION A. Award a sole source purchase order of twelve-inch lay flat sewer hose with mobile trailer to West Coast Safety Supply Co., Inc. for a total cost of$313,907; and B. Approve a contingency amount of$29,000 (-10%). BACKGROUND The Orange County Sanitation District (Sanitation District) utilizes portable sewer pumps and large diameter hoses to support Collection system maintenance activities and provide emergency pumping capacity in the event of plugged sewers or pump station failure. A lay flat hose with a powered hose reel trailer is required for transporting the lay flat sewer hose because it is too heavy to manually handle. RELEVANT STANDARDS • Less than 2.1 sewer spills per 100 miles • Protection of Orange County Sanitation District assets PROBLEM The Sanitation District is responsible for designing a protection plan for the Sanitation District's sewer lines that cross the Lane Channel in Irvine during the Orange County Flood Control District's (OCFCD) Improvement Project. The Lane Channel contingency plan consists of portable pumps and associated twelve-inch lay flat sewer hose. Spill containment resources are needed in place by March 2018. PROPOSED SOLUTION Staff recommends the purchase of one (1)heavy duty twelve-inch lay flat sewer hose and mobile trailer manufactured by Wasteline and sold by West Coast Safety Supply Co., Inc. West Coast Safety Supply Co., Inc. is the only company capable of providing this heavy duty lay flat hose within the time schedule demanded by the project (eight-week delivery) and has exclusive territory rights in Orange County and surrounding cities to sell hoses from this manufacturer. Page 1 of 2 TIMING CONCERNS The spill containment contingency plan for Project No. FE 16-11 (Lane Channel Crossing) must be in place in March 2018 to prevent delay of the OCFCD's Lane Channel project. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District must be prepared for the risk that the contractor, working in the Lane Channel, could damage sewer lines that cross the channel. The damage could lead to sewage discharge into the storm channel. Without the lay Flat sewer hose and mobile trailer, the Sanitation District will lack the ability to create a sewer bypass around the damaged pipe section. PRIOR COMMITTEE/BOARD ACTIONS N/A 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. (Fiscal Year 2017 - 2018 Budget Update- Appendix (Line Item: 822-Fleet Services, Pages A20—A21). Date of Aooroval Contract Amount Contingency 12/20/2017 $319,907 $29,000 (=10%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (MD .ocsd.com) with the complete agenda package: N/A Page 2 d 2 OPERATIONS COMMITTEE Meeting Date TOBd.Ot Dir. 12/05/17 12/20/17 AGENDA REPORT emNumber Item Number 6 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: TIFFANY PUMP STATION ODOR CONTROL FACILITY GENERAL MANAGER'S RECOMMENDATION Approve a Site Access and License Agreement with the Garden Grove Sanitary District (GGSD) to allow utilization of an odor control chemical dosing station and injection of chemicals into the Miller-Holder Interceptor at 12782 Bailey Street in the city of Garden Grove, in a form approved by Special Counsel. BACKGROUND The Orange County Sanitation District (Sanitation District) currently treats the Miller-Holder Interceptorfor odor and corrosion with a continuous feed of ferrous chloride from Hager Corporation Yard in the city of Buena Park,on the upper reaches, and Midway City Sanitary District Corporation Yard, on the lower reaches, to control hydrogen sulfide (1-12S) and odor levels within the Miller-Holder System; however, the middle reaches of this trunkline do not receive treatment for odor or corrosion control. RELEVANT STANDARDS • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting • 12 or fewer odor complaints per year under normal operating conditions in the collections system PROBLEM High levels of vapor hydrogen sulfide (H2S) in the middle part of the Miller-Holder Interceptor has the potential to cause odor nuisances and complaints in the cities of Garden Grove and Westminster. PROPOSED SOLUTION To reduce odor nuisances in the collection system, the Sanitation District implemented an odor and corrosion control program,which includes,among many tools,the application of chemicals in trunk sewers to minimize the hydrogen sulfide production as the wastewater is conveyed from the collection system to the Sanitation District's treatment plants. Staff recommends the addition of a chemical dosing station at the GGSD's Tiffany Pump Station, which is tributary to the middle reach of the Miller-Holder Trunk Sewer. Page 1 d 2 The addition of this application site will address odors along the Miller-Holder Trunk Sewer. RAMIFICATIONS OF NOT TAKING ACTION If not approved, corrosion control cannot be provided at this section of the Miller-Holder Trunk Sewer and there could be a potential for odor complaints in this service area. CEQA The Sanitation District is the lead agency and has determined this project required CEQA documentation for consideration, and filed the Sanitation District's Addendum No. 2 to the Supplemental Environmental Impact Report for the Final Effluent Pump Station Annex and Collection System Odor R Corrosion Control Program, dated September 6, 2017, and Board approved on September 27, 2017 (Item No. 8) to accommodate odor and corrosion control chemical addition at GGSD's Tiffany Pump Station. FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (mm w.ocsd.coml with the complete agenda package: • Site Access and License Agreement Page 2 of 2 SITE ACCESS AND LICENSE AGREEMENT (Tiffany Pump Station Odor/Corrosion Control Facilities) This STTE ACCESS AND LICENSE AGREEMENT (Tiffany Pump Station Odor/Corrosion Control Facilities) (`Agreement") is dated as of and for purposes of reference 2017 ("Effective Date"), and entered into between the ORANGE COUNTY SANITATION DISTRICT, a county sanitation district ("OCSD"), and the GARDEN GROVE SANITARY DISTRICT, a public body corporate and politic ("GGSD"). OCSD and GGSD are sometimes individually referred to as a "Party" and collectively referred to as the "Parties". RECITALS A. OCSD is a duly organized County Sanitation District organized and existing under the County Sanitation District Act, California Health and Safety Code section 4700, et seq., that provides for the ownership, operation, and maintenance of wastewater collection, treatment, and disposal facilities within Orange County, and is responsible for safely collecting, treating, and disposing of wastewater generated by more than 2.5 million people living and working in Orange County. B. GGSD is a special district, duly organized and validly existing under the Constitution and the laws of the State of California,and a sanitary district that collects wastewater and is tributary to OCSD facilities for treatment and disposal. The City Council of the City of Garden Grove acts as the Board of Directors and governing board of the GGSD. C. GGSD owns and operates certain real property commonly referred to as the"Tiffany Pump Station" located at 12782 Bailey Street, Garden Grove, CA 92845, which is depicted on Exhibit A,attached and fully incorporated herein("Property"). D. OCSD previously installed facilities and conducted a demonstration project at the Property to evaluate the effectiveness of utilizing calcium nitrate added to wastewater to reduce odor and corrosion in downstream wastewater facilities. E. Based on the results of the demonstration project, OCSD desires to access the Property to install, operate, and maintain the facilities previously installed at the Property, and additional facilities (collectively, "Facilities"), to reduce odor and corrosion in downstream wastewater facilities("Facilities Use's. F. The Facilities Use will mutually benefit the Parties by reducing odors and corrosion in sewer lines owned or controlled by GGSD and OCSD. As a reflection of thew shared interest in treating sewage in the interest of the public's health, safety, and welfare, the Parties intend by this Agreement for GGSD to grant to OCSD a license for the following specific and limited purposes of (1)right of access to Property for the Facilities Use,and(2)right to use the Property for the Facilities Use(together,"License')for the 10-year Term as defined more fully set forth herein. NOW THEREFORE,GGSD and OCSD agree as follows: Section 1. Grant of License. GGSD hereby grants to OCSD a right of entry and site access onto the Property("Site Access")to install,operate,and maintain the Facilities reasonably necessary 4847-4227-0289.1 1 and convenient for OCSD's wastewater odor control program, as depicted in Exhibit B attached hereto and incorporated by this reference, which together comprise the License hereunder. This License may be used by OCSD, its employees, and authorized agents, including OCSD's duly licensed and insured consultants,contractors and subcontractors under contract with OCSD. (a) The Facilities include: one tank, a chemical dosing enclosure, and a conduit that will carry odor control chemicals from the tank to the existing wet well at the Property. The odor control chemicals may include, but are not limited to: calcium nitrate, ferrous chloride, and magnesium hydroxide. (b) OCSD acknowledges that access to the Property may necessitate access across certain part(s)of the improved real property adjacent to the Property that has a current use of dental offices (the "Adjacent Parcel' . In this regard, OCSD agrees during the Term of the License OCSD is responsible to take any and all steps necessary to access and traverse this Adjacent Parcel and OCSD is and shall remain solely responsible and liable, legally and financially, for such access, traversing or other use of this Adjacent Parcel. (c) In each instance when OCSD consultants, contractors or subcontractors desire to enter onto the Property (including the Adjacent Parcel) for the Facilities Use, OCSD shall provide GGSD prior notice in writing of the names of OCSD's duly authorized, licensed and insured consultants, contractors and subcontractors, and each shall be identified by way of uniforms, or vehicles with signs or logos,or other identifying measures when accessing the Property including the Adjacent Parcel for the Facilities Use. (i) For each and all OCSD consultants, contractors and subcontractors, OCSD shall ensure that each contract between OCSD and consultant, and OCSD and contractor, as applicable (including subcontractor(s)), obtain and maintain insurance policies in the amounts and types of coverage that comply with Section 11 herein. Section 2. Term. This Agreement and the License granted herein shall commence as of the Effective Date and remain in effect for a term of ten(10)years("Term").The Term may be extended at OCSD's option for an additional 10 years, provided OCSD delivers written notice to GGSD exercising said option no less than 90 days prior to the scheduled expiration of the Term. Section 3. Eaoiomeat. OCSD may bring onto the Property and install such equipment or machinery as may be reasonably necessary or convenient to conduct the intended odor control measures, subject to OCSD providing a written notice to GGSD with a description of the type of equipment or machinery prior to installing or bringing onto the Property so that GGSD risk management may evaluate and determine if the scope of required insurance should be modified to cover more particularly the additional equipment or machinery. Section 4. Material Data Handling Sheets. OCSD shall provide OGSD with a copy of each "Safety Data Sheet" in compliance with the requirements of the United Sires Occupational Safety and Health Administration for any chemicals used by OCSD at the Property for the Facilities Use that may pose a hazard to GGSD employees,agents,or other persons who may access the Property or the adjacent property. Section 5. Mutual Non-Interference. The Parties each acknowledge that both GGSD and OCSD will be jointly using the Property, and in doing an intend to avoid interfering with the use, 48474227-0299.1 2 operation, and maintenance of the other Party's facilities, whether related or unrelated to the Facilities Use,except as specifically set forth in this Agreement. (a) Except as detailed on the attached exhibits, OCSD shall not interfere with GGSD's pumping facilities or related operations at the Property presently or in the future, which as of the Effective Date consist of a wastewater pumping plant (b) OCSD shall give GGSD at least two (2) business days' notice prior to entering the Property for regular maintenance or repairs, or provide to GGSD a detailed schedule of regular maintenance that would eliminate the need for separate notices for each Site Access. (i) In the event of an emergency or other urgent circumstances, OCSD shall provide GGSD with as much advance notice as reasonably possible prior to entering the Property for emergency or other urgent repair work,subject to Section 6.1 below. (c) Except upon the express written consent of OCSD, which consent shall not be unreasonably withheld, conditioned or delayed, GGSD shall not, and shall cause its lessees, licensees, or agents to not: (i) tamper with, after, or damage the Facilities, (ii)interfere with or obstruct OCSD's activities related to the Facilities Use; and (iii) cause or permit interference, damage,or obstruction by others. Section 6. Maintenance of Prooerty and Facilities. During the Term of this Agreement, OCSD shall maintain the Facilities, and shall repair any damage caused by OCSD to the Property (and, as applicable, the Adjacent Parcel) in compliance with all applicable federal, state, regional, county and local laws and regulations (or cause such to occur) and shall undertake the following at OCSD's sole cost,expense,liability,and responsibility: (a) Operate,maintain, and repair the Facilities in accordance and in conformity with any and all of the ordinances, resolutions, rules and regulations heretofore or hereafter adopted by the GGSD in the exercise of its Constitutional and statutory powers and not in conflict with the paramount authority of the United States of America, the State of California and subject to all applicable local,state,and federal laws. (i) If not properly and timely repaired or maintained by OCSD, then to pay to GGSD on demand all reasonable costs incurred or to be incurred by GGSD for all reasonable repairs to the Property(including the Adjacent Pamel)caused by OCSD. (b) Remove or relocate, at the request of GGSD and without expense to GGSD, any conduits,pipes or appurtenances installed by OCSD(or its agents)as a part of the Facilities,or used and/or maintained by OCSD under this Agreement if and when such removal or relocation is made necessary by urgent public purposes of GGSD;provided, however, that OCSD shall not be required to bear the expense of any removal or relocation made at the request of GGSD solely on behalf of or for the sole benefit ot;any third patty developer or any other third party unless so directed by a court of competent jurisdiction and provided further that if GGSD requests OCSD remove or relocate any part of the Facilities for any reason,then OCSD may terminate this Agreement in OCSD's sole and absolute discretion.The Parties shall amend this Agreement if necessary to reflect agreed changes as to the Facilities or other provisions of this Agreement. 49474T 89.1 3 (c) In the care of emergency where work on any conduit,pipes or appurtenance must, in the reasonable discretion of OCSD, be performed by OCSD immediately due to risk of danger or public harm, OCSD shall perform such work and obtain appropriate permits therefor as soon as practical thereafter. (d) If any portion of the Property(or the Adjacent Parcel)any improvement thereto shall be damaged by reason of defect in any of the Facilities, or otherwise in implementation of this License, or any other conduit, pipes and appurtenances maintained, repaired or replaced under this Agreement, or by reason of any acts or omissions of OCSD(or any of its consultants,contractors or subcontractors) involving the operation or existence of any of the Facilities maintained, repaired or replaced under this Agreement, OCSD shall, at its own cost and expense, immediately repair such damage and restore such property or improvement to as good a condition as existed immediately prior to the occurrence of such damage unless otherwise agreed in writing with GGSD. Such work is to be done subject to approval of GGSD in consultation with legal counsel and in accordance with any and all rules, regulations, ordinances, resolutions, standards, specifications of the GGSD and applicable state and federal laws and regulations. GGSD shall not unreasonably withhold, condition or delay the approval required by this section. (e) Included within Exhibit B are renderings showing the accurate size, depth and the length of the Facilities on the Property that are the subject matter of this Agreement If there are changes to the location, size,depth and the length of the Facilities during the Term, OCSD agrees to both notify GGSD in writing and within thirty(30)days to submit to GGSD revised renderings to be appended to this Agreement and on file with GGSD. (I) Except as may be specifically provided for elsewhere in this Agreement, if OCSD shall fail,neglect or refuse to comply with any of the provisions or conditions hereof and shall not, within fifteen (15) days after written demand for compliance, begin the work of compliance or initiate communications with GGSD regarding same,or after such commencement of work,shall not prosecute the same with due diligence and continuously to completion, GGSD may declare this Agreement forfeited and terminated, and OCSD shall immediately close and discontinue all operations or uses under this Agreement and the License shall be deemed terminated. (g) GGSD may sue in its own name for(a)the forfeiture of this Agreement in the event of breach by OCSD(if OCSD fails to cure such breach in the time permitted by the prior subsection hereof),or(b)for my other legal cause it may assert in good faith against OCSD. In the event of any such suit or other legal proceeding, the substantially prevailing Party shall be entitled to reimbursement of its reasonable attorneys' fees incurred. Section 7. Oneoine Condition of Provenly. OCSD shall maintain the Facilities in an orderly mamer while they are located on the Property, and shall remove all debris, trash, equipment, and other materials used by OCSD (including its consultants, contractors and subcontractors) immediately upon completion of installation of Facilities and/or regular maintenance and repair work. Additionally, OCSD shall (including its consultants, contractors and subcontractors), to the extent feasible, at the completion of each day's work, maintain the Property (and as applicable the Adjacent Parcel)to as close to the same condition as it existed at the commencement of that day. Section 8. Condition of Proverty at Effective Date. GGSD represents and warrants, to the best of the actual knowledge of the Sanitation Division Supervisor, who is the current lead staff person during preparation of this Agreement, that the Property is free of hazardous materials and 4947d217-Mg.1 4 environmental contamination. Subject to the preceding sentence, OCSD accepts the Property and all conditions thereon as may exist from now and during the Term without any further representation or warranty from GGSD (or any of its elected or appointed officials, employees, agents or representatives), and without any duty of GGSD to wam of any conditions. Accordingly, OCSD (and all of its elected or appointed officials, employees, agents and representatives) knowingly and intentionally assumes all risks associated with the Site Access, Property, the Adjacent Parcel, the Facilities, and the Facilities Use arising out of or related in any manner to the License and/or this Agreement Section 9. Under round Activities. OCSD shall determine the presence or absence of underground utilities and structures prior to conducting subsurface work, if any, at the Properly. During the Term and as and if applicable, OCSD shall make a complete and diligent inquiry with Underground Service Alert of Southern California (aka Dig Alert) to register, identify and mark facilities at the Property affected by this Agreement. In addition, OCSD shall provide appropriate notification to, and obtain all required permits from, applicable regulatory authorities prior to conducting work at the Properly. Section 10. Cost. Any work performed by OCSD at near,beneath, or related to the Facilities or this Agreement shall be and remain at the sale cost and expense of OCSD. During the Term,OCSD shall keep the Property free and clear of all liens or encumbrances, including without limitation mechanics liens,stop notices,judgments, in any way related to the operation of OCSD's Facilities. Section 11. Insurance: Commencement of Work OCSD and each of OCSD's consultants, contractors and subcontractors shall not commence work under this Agreement until all certificates and endorsements have been received and approved by GGSD risk management GGSD shall not unreasonably withhold, condition or delay the approval required by this section or any of the subsections listed below. OCSD shall be responsible to collect and maintain all insurance from each and all consultants and contractors, and each subcontractor shall too obtain and maintain the same insurance as required of OCSD and its consultants and contractors. (a) Workers Compensation In once. For the duration of this Agreement, OCSD shall maintain Workers Compensation Insurance in the amount and type required by California law, if applicable. The insurer shall waive its rights of subrogation against the GGSD, City of Garden Grove,and their respective officers,officials,agents,employees,and volunteers. (b) Additional Coverages and Insurance Amounts. OCSD shall provide and maintain the following insurance for the duration of this Agreement: (i) Commercial general liability, in an amount not less than $2,000,000 per occurrence, $4,000,000 aggregate; (claims made and modified occurrence policies are not acceptable). Insurance companies must be acceptable to GGSD and have an AM Best's Guide Rating of A-,Class VU or better,as approved by the GGSD. (A) An Additional Insured Endorsement, ongoing and products-completed operations, for the policy under Section I1(bxi) shall designate GGSD and the City of Garden Grove as additional msmeds for liability arising out of work or operations performed by or on behalf of the OCSD. OCSD shall provide to GGSD proof of insurance and endorsement forms that conform to GGSD's requirements,as approved by the GGSD. 4847-4 r-Mll 5 (ii) Automobile liability in an amount not less than$1,000,000 combined single limit;(claims made and modified occurrence policies are not acceptable). Insurance companies must be acceptable to GGSD and have an AM Best's Guide Rating of A-,Class VII or better,as approved by the GGSD. (A) An Additional Insured Endorsement for the policy under Section 1l(b)(ii)shall designate GGSD and the City of Garden Grove as additional insureds for automobiles owned, leased, hired, or borrowed by the OCSD and shall provide to GGSD proof of insurance and endorsement forms that conform to GGSD's requirements,as approved by the GGSD. (iii) Excess liability coverage shall be provided for any underlying policy that does not meet the insurance requirements set forth herein (claims made and modified occurrence policies are not acceptable). (A) In the event any of OCSD's underlying policies do not meet policy limits within the insurance requirements, OCSD shall provide the schedule of underlying polices for a follows form excess liability policy under Section 11(b)(vi). The insurance tamer shall state that the excess policy follows form on the insurance certificate and provide an additional insured endorsement for the excess liability policy designating GGSD, City of Garden Grove, and their respective officers, officials, employees, agents, and volunteers as additional insureds. OCSD shall provide to GGSD proof of insurance and endorsement forms that conforn to GGSD's requirements, as approved by the GGSD. (e) Insurance companies must be acceptable to GGSD and have a Best's Guide Rating of A-,Class VII or better,as approved by the GGSD. (d) For any claims related to this Agreement, OCSD's insurance coverage shall be primary insurance as respects GGSD and the City of Garden Grove. Any insurance or self-insurance maintained by the GGSD and the City of Garden Grove shall be excess of the OCSD's insurance and shall not contribute with it OCSD shall provide to GGSD proof of insurance and endorsement forms that conform to GGSD's requirements, as approved by the GGSD. (a) All consultants, contractors and subcontractors shall be required to provide the same insurance as required of OCSD hereinabove. OCSD shall be responsible to collect and maintain all insurance from all contractors and subcontractors. OCSD shall ensure that all insurance received from all contractors, subcontractors, and consultants meets and/or exceeds the requirements of the contract as approved by GGSD. OCSD shall provide all insurance to GGSD upon request, including certified copies of all policies. (1) If OCSD maintains higher insurance limits than the minimums shown above, OCSD shall provide coverage for the higher insurance limits otherwise maintained by OCSD. (g) OCSD may self-insure against any of the risks described in this section, and if it elects to do so shall provide GGSD with a letter of self-insurance within five days after the Effective Date. 4947<227-0289.1 8 Section 12. Indemnity. (a) OCSD Indemnification of GGSD and City. OCSD shall protect,indemnify,defend and hold harmless GGSD, the City and their respective elected and appointed officials, officers, employees, counsels, agents and volunteers (collectively, "Indemnitees") from and against any and all claims, demands, obligations,damages (including consequential and/or punitive damages), costs, liabilities, actions and judgments (collectively, "Claims') including, without limitation, Claims for injury or damage to persons or property, and Claims for penalties, fines and reasonable atromey's fees and costs (including attorneys fees and costs incurred to enforce this indemnity), incurred in connection with or arising from OCSD's acts or omissions related to this License; provided, however,that this indemnity shall not apply to the extent of any negligence or willful misconduct of Indemnitees that occurs after the Effective Date. Further, OCSD shall have no liability to Indemaitees or to any other person or entity by reason of, nor shall OCSD have any duty to indemnify, defend or hold any person harmless against, any claim, demand, damage, loss, action, liability,cause of action or judgment, including,without limitation,any claim for diminution in value of the Property or for environmental remediation or clean-up costs, arising out of or in connection with OCSD having discovered, inadvertently disturbed and/or reported (as may be required by law) any adverse physical condition, existing hazardous materials, or other defect with respect to the Property that may exist on or about the Property as ofthe Effective Date. (b) GGSD Indemnification of OCSD. GGSD shall protect, indemnify,defend and hold harmless OCSD and its respective elected and appointed officials, officers, employees, counsel, agents and volunteers ("OCSD Indemnified Parties") from and against any and all Claims made against any of the OCSD Indemnified Parties arising out GGSD's operations at the Property, or my acts,omissions,negligence,willful misconduct,or breach of this Agreement by GGSD. Section 13. Specific Purpose License Only: No Easement or Other Interest Granted. This Agreement is intended and shall be construed as a license to enter upon the Property for the Site Access and to operate the Facilities at the Property, and is not and shall not be construed,directly or indirectly, as a grant of easement or any other interest in the Property (or the Adjacent Parcel). Except as expressly set forth herein, no other rights are created by the License granted by this Agreement. Section 14. Attorneys' Fees. If either of the Parties is required to engage an attorney or institute an action in order to enforce any of the provisions of this Agreement, the prevailing Party will be entitled to reasonable attorneys' fees and court costs which may be incurred. Section 15. Notices. All notices required or permitted hereunder must be in writing and must be personally delivered or seat by registered or certified mail,postage prepaid, return receipt requested, delivered or sent by recognized overnight courier and will be deemed received upon the earlier of. (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier, or(ii)three(3)business days after the date of posting by the United States Post Office if by mail. Notices or other communications shall be addressed as follows: 4a 74W-G2aa.t 7 To OCSD: Orange County Sanitation District Post Office Box 8127 Fountain Valley,CA 92728-8127 Attention:James D.Herberg,General Manager with a copy to: Lewis Brisbois Bisgaard&Smith LLP 633 W.Sth St.,Suite 4000 Los Angeles,CA 90012 Attn:Claire Hervey Collins,Esq. To GGSD: Garden Grove Sanitary District 11222 Acacia Parkway Garden Grove,CA 92840 Attention:William E.Murray,Public Works Director With copy to: Legal Counsel,GGSD Section 16. Jurisdiction.In the event of a dispute regarding performance or interpretation of this Agreement, the venue for any action to enforce or interpret this Agreement shall lie in the Superior Court of California for Orange County. Section 17. No Third Party Beneficiaries. Except as to the insurance and indemnity requirements that intentionally include the City of Garden Grove(and Indemnitees), this Agreement is entered into by and for OCSD and GGSD and is not intended to establish rights or interests in individuals or entities not a party hereto. This Agreement is binding upon the Parties and their respective successors, representatives, heirs, and assigns. OCSD shall not assign this Agreement or any rights hereunder without the prior written consent of GGSD,which may be given or withheld in GGSD's sole,reasonable discretion. Section 18. Force Maienre. Except for the payment of money, neither Party shall be liable for my delays or other non-performance resulting from circumstances or causes beyond its reasonable control,including without limitation,fire or other casualty,Act of God,strike or labor dispute,war or other violence,acts of third-parties, or my law,order, or requirement of my governmental agency or authority. Section 19. Governing Law. This Agreement is governed by the laws of the State of California Section 20. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations and agreements between the Parties pertaining to the subject matter hereof. Section 21. Waiver. A waiver of a breach of the covenants, conditions or obligations under this Agreement by either Party shall not be construed as a waiver of my succeeding breach of the same or other covenants,conditions or obligations of this Agreement Section 22. Amendments. This Agreement may be modified or amended only by a written document executed by both OCSD and GGSD. 48474227-0289.1 a Section 23. Severability.If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. Section 24. Agreement Execution and Authorization. Fach of the undersigned represents and warrants that they are duly authorized to execute and deliver this Agreement and that such execution is binding upon the entity on whose behalf they are executing this Agreement. [signature blocks on next page] 48474227-0289.1 9 [continued from previous page] This Site Access and License Agreement (Pifjany Pump Station Odor/Corrosion Control Facilities)has been executed as of the Effective Date. ORANGE COUNTY SANITATION DISTRICT, a county sanitation district By: Gregory C.Seboum,PLS Board Chair ATTEST: Kelly Lore Clerk of the Board APPROVED AS TO FORM: Lewis Brisbois Bisgaard&Smith,LLP By: �-4VW� Claire Hervey Collins Special Counsel GARDEN GROVE SANITARY DISTRICT, a public body c,orpomte and politic By: lelor L. Aw coS�ea,General Manager ATTEST: �- Wo - l Di1n l [ off_ Teresa Pomeroy,Secretary APPROVED AS TO FORM: Stmdling Yocca Carlson&Rauth By: Cel ekAllrady,Sp of Couni e8e742Z74sm.1 10 -;fit 4, ' -• f i Garden E7¢IIBIT`B" Tiffany Pump Station,Electrical Service Conduit Junction Boa and Existing Chemical Storage and Dosing Equipment located at 12782 Bailey Street Garden Grove,CA 92845 r i Conduit run, electrical se HZ, 30A, terminating in a 10 feet of the dosing mo 48474Mr 289.1 Exhibit B Facilities Page 1 of 5 Tiffany Pump Station,Existing Chemical Storage and Dosing Equipment located at 12782 Bailey Street Garden Grove,CA 92845 4MMn7-0289.1 Exhibit B Facilities Page 2 of 5 Pump and Enclosure Details i�Ai + ram ate. I 1 j i row UP 4M7422M89.1 Exhibit B Facilities Page 3 of 5 Photograph of Existing Pump and Monitor/Controller 8.0 Y ♦� 9&74M4289A Exhibit B Facilities Page 4 of 5 Site Plan of Facilities PAVED LOT {\ BUaOING / yY PAVED LOT e�A i fNSTHG XEf XpL Ddlll WMl LILdM NWN1E SRFNGE ifNN / TEED SISIEM NmmE aunA�u 4M74227-0289.1 Exhibit E Facilities Page 5 of 5 OPERATIONS COMMITTEE Meeting Date TOBd.Of Dir. 12/05/17 12/20/17 AGENDA REPORT emNumber Item Number 7 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: SAFETY IMPROVEMENTS PROGRAM, PROJECT NO. J-126 GENERAL MANAGER'S RECOMMENDATION A. Award a Construction Contract to AMTEK Construction for the Safety Improvements Program, Contract No. J-126 A and H, for a total amount not to exceed $452,757; and B. Approve a contingency of$45,276 (10%). BACKGROUND The Orange County Sanitation District (Sanitation District) owns and operates facilities that were designed and constructed from the 1950s to present. In July 2014, the Facility Wide Safety Assessment, Project No. SP-145-1, reviewed safety issues at the Sanitation District Plant Nos. 1 and 2 and pump stations. The study identified approximately 2,000 facility issues impacting worker safety and compliance with Cal/OSHA regulations, including electrical, fall protection, machine guarding, hazardous area classifications, skylights, and walkway hazards. Each item was assigned a high, medium, or low priority rating. Pending resolution of the safety items, the Sanitation District took interim measures to minimize life-safety risks. There was approximately an even distribution between issues that would be addressed using Sanitation District resources and those that would be addressed through the Capital Improvement Program, depending on the nature and complexity. Items that could not be assigned to existing projects have been assigned to the Safety Improvements Program, Project No. J-126. To resolve the deficiencies as quickly as possible, Safety Improvements Program, Project No. J-126, is being executed through multiple construction packages that can be completed in a shorter time than using a single construction contract. Development of multiple construction packages also allows higher priority safety items to be completed more quickly than lower priority items. RELEVANT STANDARDS Provide a safe and collegial workplace Page 1 of 3 PROBLEM Among the various Project No. J-126 deficiencies are 11 roof and other fall protection deficiencies at Bay Bridge and Slater Pump Stations and 31 hot surface deficiencies at Plant Nos. 1 and 2. PROPOSED SOLUTION Award Construction Contract No. J-126 A and H. TIMING CONCERNS Delaying resolution of the safety items poses potential threats to staff, Contractor, and visitor safety. RAMIFICATIONS OF NOT TAKING ACTION • Staff, Contractors, and visitors will continue to be exposed to potential safety hazards. • Certain facilities will continue to not comply with code requirements. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District advertised Contract No. J-126 A and H for bid on June 22, 2017, and three sealed bids were received on August 8, 2017. A summary of the bid opening is as follows: Engineer's Estimate $ 646,159 Bidder Amount of Bid AMTEK Construction $ 452,757 Schuler Constructors, Inc. $ 568,300 PCL Construction, Inc. $ 601,171 The bids were evaluated in accordance with the Sanitation District's policies and procedures. A notice was sent to all bidders on November 9, 2017, informing them of the intent of Sanitation District staff to recommend award of the Construction Contract to AMTEK Construction. Staff recommends awarding a construction contract to the lowest responsive bidder, AMTEK Construction, for Safety Improvements Program, Contract No. J-126 A and H,for a total amount not to exceed $452,757. Page 2 of 3 CEQA A CEQA Notice of Exemption for this project was filed on August 14, 2015. The project is exempt from CEQA pursuant to CEQA's Class 1 Exemption for Existing Facilities (section 15301). The exemption calls for minor alteration of existing public or private structures, facilities, mechanical equipment, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. This project calls for safety related modifications of existing facilities which will have no impact to existing capacity. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted (FY2017-18 Budget Update, Appendix, Page A-8, Project No. J-126), and the budget is sufficient for the recommended action. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: Construction Contract TG:dm:gc Page 3 of 3 PART A CONTRACT AGREEMENT C-CA-011317 TABLE OF CONTENTS CONTRACT AGREEMENT SECTION - 1 GENERAL CONDITIONS..................................................................1 SECTION -2 MATERIALS AND LABOR.................................................................4 SECTION -3 PROJECT..........................................................................................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.................................................................................10 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-011317 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT CONTRACT NO. J-126 A and H SAFETY IMPROVEMENTS PROGRAM THIS AGREEMENT is made and entered into, to be effective, this December 20, 2017, by and between AMTEK Construction, hereinafter referred to as"CONTRACTOR" and the Orange County Sanitation District, hereinafter referred to as "OCSD". WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OCSD and CONTRACTOR agree as follows: SECTION-1 GENERAL CONDITIONS CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of OCSD. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions—Definitions. CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM 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 iIL 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 C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 2 of 24 directed. Full-size details shall take precedence over scale Drawings as to shape and details of construction. Specifications shall govern as to material and workmanship. b. The Contract Documents calling for the higher quality material or workmanship shall prevail. Materials or Work described in words, which so applied, have a well known technical or trade meaning shall be deemed to refer to such recognized standards. In the event of any discrepancy between any Drawings and the figures thereon, the figures shall be taken as correct. C. Scale Drawings, full-size details, and Specifications are intended to be fully complementary and to agree. Should any discrepancy between Contract Documents come to the CONTRACTOR's attention, or should an error occur in the efforts of others, which affect the Work, the CONTRACTOR shall notify the ENGINEER, in writing, at once. In the event any doubts or questions arise with respect to the true meaning of the Contract Documents, reference shall be made to the ENGINEER whose written decision shall be final. If the CONTRACTOR proceeds with the Work affected without written instructions from the ENGINEER, the CONTRACTOR shall be fully responsible for any resultant damage or defect. d. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to OCSD's ENGINEER, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the ENGINEER shall be final. CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM 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-126 A and H SAFETY IMPROVEMENTS PROGRAM C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 4 of 24 SECTION -4 PLANS AND SPECIFICATONS The Work to be done is shown in a set of Plans and Specifications entitled: CONTRACT NO. J-126 A and H SAFETY IMPROVEMENTS PROGRAM 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 fifteen (15) Days from the date set forth in the "Notice to Proceed"sent by OCSD, unless otherwise specified therein and shall diligently prosecute the Work to completion within two hundred seventy (270) Days from the effective date of the "Notice to Proceed" issued by OCSD, excluding delays caused or authorized by OCSD as set forth in Sections 7, 6, and 9 hereof, and applicable provisions in the General Conditions. The time for completion includes five (5) Days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. SECTION—6 TIME IS OF THE ESSENCE Time is of the essence of this Contract. As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the Work covered by this Contract with that of all other contractors, subcontractors and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with Section 5 herein. OCSD shall have the right to assert complete control of the premises on which the Work is to be performed and shall have the right to decide the time or order in which CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM 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 Work 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 Work by the number of days, if any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by the ENGINEER. The decision of the ENGINEER shall be final. C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 6 of 24 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 Documents, 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." 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 Four Hundred Fifty-Two Thousand Seven Hundred Fifty-Seven Dollars ($452,757) as itemized on the Attached Exhibit"A". CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 7 of 24 Upon satisfaction of the conditions precedent to payment set forth in the General Requirements, Additional General Requirements and General Conditions (including but not limited to Sections entitled "Mobilization Payment Requirements' and "Payment Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the commencement of the Work a schedule which shows: 1. A minimum of one (1) payment to be made to the CONTRACTOR for each successive four-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 the ENGINEER. The processing of payments shall not be considered as an acceptance of any part of the Work. C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 8 of 24 B. As used in this Section, the following defined terms shall have the following meanings: 1. "Net Progress Payment' means a sum equal to the Progress Payment less the Retention Amount and other qualified deductions (Liquidated Damages, stop payment notices, etc.). 2. "Progress Payment' means a sum equal to: a. the value of the actual Work completed since the commencement of the Work as determined by OCSD; b. plus the value of material suitably stored at the worksite, treatment plant or approved storage yards subject to or under the control of OCSD since the commencement of the Work as determined by OCSD; C. less all previous Net Progress Payments; d. less all amounts of previously qualified deductions; e. less all amounts previously retained as Retention Amounts. 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." CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 9 of 24 SECTION - 13 COMPLETION Final Completion and Final Acceptance shall occur at the time and in the manner specified in the General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A- Schedule of Prices. Upon receipt of all documentation, records, and releases as required by the Contract from the CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General Conditions. SECTION-14 CONTRACTOR'S EMPLOYEES COMPENSATION A. Davis-Bacon Act: CONTRACTOR will pay and will require all Subcontractors to pay all employees on said Project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of two thousand dollars ($2,000.00) and when twenty-five percent (25%)or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. 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 Engineering Department. 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 C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 10 of 24 Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each job site, which shall be made available to any interested party upon request. C. Forfeiture for Violation: CONTRACTOR shall, as a penalty to OCSD, forfeit two thousand 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 it hereunder except as provided in paragraph (B)above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at seg.)of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of twenty-five dollars ($25.00)for each worker employed in the execution of this Contract by CONTRACTOR or any Subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one (1)calendar day and forty (40) hours in any one (1)week in violation of said Article. CONTRACTOR shall keep CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 11 of 24 an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project. F. Registration: Record of Wages: Insoection: CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(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 one hundred percent (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 C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 12 of 24 995.630. Each Bond shall be executed in the name of the Surety insurer under penalty of perjury, or the fact of execution of each Bond shall be duly acknowledged before an officer authorized to take and certify acknowledgments, and either one of the following conditions shall be satisfied: A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by- laws, or other instrument, duly certified by the proper authority and attested by the seal of the insurer entitling or authorizing the person who executed the Bond to do so for and on behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or B. A copy of a valid power of attorney is attached to the Bond. SECTION— 16 INSURANCE CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against claims for injuries to persons, or damages to property which may arise from or in connection with the performance of the Work hereunder, and the results of that Work by CONTRACTOR, its agents, representatives, employees, or Subcontractors, in amounts equal to the requirements set forth below. CONTRACTOR shall not commence Work under this Contract until all insurance required under this Section is obtained in a form acceptable to OCSD, nor shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all 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 CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 13 of 24 obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, inclusive of all changes to the Contract Documents made in accordance with the provisions of the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and/or"OWNER Initiated Changes", the following insurance in amounts not less than the amounts specified. OCSD reserves the right to amend the required limits of insurance commensurate with the CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter OCSD Premises/worksite without Possessing the required insurance coverage. CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by agencies from whom permits shall be obtained for the Work and any other third parties from whom third party agreements are necessary to perform the Work (collectively, the "Third Parties"), The Special Provisions may list such requirements and sample forms and requirements from such Third Parties may be included in an attachment to the General Requirements. CONTRACTOR bears the responsibility to discover and comply with all requirements of Third Parties, including meeting specific insurance requirements, that are necessary for the complete performance of the Work. To the extent there is a conflict between the Third Parties' insurance requirements and those set forth by OCSD herein, the requirement(s) providing the more protective coverage for both OSCD and the Third Parties shall control and be purchased and maintained by CONTRACTOR. A. Limits of Insurance 1. General Liability: Five Million Dollars ($5,000,000) per occurrence and a general aggregate limit of Five Million Dollars ($5,000,000)for bodily injury, personal injury and property damage. Coverage shall include each of the following: a. Premises-Operations. C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 14 of 24 b. Products and Completed Operations, with limits of at least Five Million Dollars ($5,000,000) per occurrence and a general aggregate limit of Five Million Dollars ($5,000,000)which shall be in effect at all times during the warranty period set forth in the Warranty section herein, and as set forth in the General Conditions, "Warranty(CONTRACTOR's Guarantee)", plus any additional extension or continuation of time to said warranty period that may be required or authorized by said provisions. C. Broad Form Property Damage, expressly including damage arising out of explosion, collapse, or underground damage. d. Contractual Liability, expressly including the indemnity provisions assumed under this Contract. e. Separation of Insured Clause, providing that coverage applies separately to each insured, except with respect to the limits of liability. f. Independent CONTRACTOR's Liability. To the extent first dollar coverage, including defense of any claim, is not available to OCSD or any other additional insured because of any SIR, deductible, or any other form of self insurance, CONTRACTOR is obligated to 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. CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 15 of 24 h. If divers will be used, the General Liability insurance will be endorsed to cover marine liability or its equivalent to cover the usage of divers. 2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Either(1)a combined single limit of Five Million Dollars ($5,000,000) and a general aggregate limit of Five Million Dollars ($5,000,000)for bodily injury, personal injury and property damage; Or alternatively, (2) Five Million Dollars ($5,000,000) per person for bodily injury and Five Million Dollars ($5,000,000) per accident for property damage. 3. Umbrella Excess Liability: The minimum limits of general liability and automobile liability insurance required, as set forth above, shall be provided for either in a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automobile liability. 4. Drone Liability Insurance: If a drone will be used, drone liability insurance must be maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a form acceptable by OCSD. 5. Worker's Compensation/EmDlover'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 C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 16 of 24 liability may exist, the insurance required herein shall include coverage with regard to Jones Act claims. Where permitted by law, CONTRACTOR hereby waives all rights of recovery by subrogation because of deductible clauses, inadequacy of limits of any insurance policy, limitations or exclusions of coverage, or any other reason against OCSD, its or their officers, agents, or employees, and any other contractor or subcontractor performing Work or rendering services on behalf of OCSD in connection with the planning, development and construction of the Project. In all its insurance coverages related to the Work, CONTRACTOR shall include clauses providing that each insurer shall waive all of its rights of recovery by subrogation against OCSD, its or their officers, agents, or employees, or any other contractor or subcontractor performing Work or rendering services at the Project. Where permitted by law, CONTRACTOR shall require similar written express waivers and insurance clauses from each of its Subcontractors of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a)would otherwise have a duty of indemnification, contractual or otherwise, (b)did not pay the insurance premium, directly or indirectly, and (c)whether or not such individual or entity has an insurable interest in the property damaged. 6. Limits are Minimums: If CONTRACTOR maintains higher limits than the minimums shown in this Section, OCSD requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. B. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by OCSD. At the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self- insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 17 of 24 employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration, and defense expenses. C. Other Insurance Provisions 1. Each such policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to contain, the following provisions: a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all public agencies from whom permits will be obtained, and their Directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of CONTRACTOR at or from any of the sites of OCSD in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under this policy. 2. Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty(30) days prior written notice by certified mail, return receipt requested, and that coverage shall not be cancelled for non-payment of premium except after ten (10)days prior written notice by certified mail, return receipt requested. Should there be changes in coverage or an increase in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript endorsement from its insurer giving thirty(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 C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 18 of 24 amounts. The certified letter must be sent Attention: Risk Management and shall be received not less than twenty (20) days prior to the effective date of the change(s). The letter must be signed by a Director or Officer of the broker/agent and must be on company letterhead, and may be sent via e-mail in pdf format. 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s)will be obtained, each policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to specify by name the public agency and its legislative members, officers, agents, CONSULTANTS, and employees, to be additional insureds. D. Acceptability of Insurers Insurers must have an "A-", or better, Policyholder's Rating, and a Financial Rating of at least Class 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 CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 19 of 24 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 C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 20 of 24 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. 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 CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 21 of 24 Completion' that the completed Work is free from all defects due to faulty materials, equipment or workmanship and that it shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs of any damage to other parts of the system resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, OCSD may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any corrected deficiency until the later of(1)the remainder of the original one-year warranty period; or(2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and the Payment Bond shall remain in full force and effect through the guarantee period. The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's other express or implied assurances under this Contract, including but not limited to specific manufacturer or other extended warranties specified in the Plans and Specifications, or state law and in no way diminish any other rights that OCSD may have against the CONTRACTOR for faulty materials, equipment or Work. SECTION-20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety. SECTION—21 RESOLUTION OF DISPUTES OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which 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. C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 22 of 24 SECTION—22 SAFETY & HEALTH CONTRACTOR shall comply with all applicable safety and health requirements mandated by Federal, State, City, and/or public agency codes, permits, ordinances, regulations, and laws, as well as these Contract Documents, including but not limited to the General Requirements, Section entitled "Safety" and Exhibit B OCSD Safety Standards. SECTION-23 NOTICES Any notice required or permitted under this Contract may be given by ordinary mail at the address set forth below. Any party whose address changes shall notify the other party in writing. TO OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Clerk of the Board Copy to: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Construction Manager Bradley R. Hogin, Esquire Woodruff, Spradlin & Smart 555 Anton Boulevard, Suite 1200 Costa Mesa, California 92626 TO CONTRACTOR: AMTEK Construction 12409 Slauson Avenue, Suite"I" Whittier, CA 90606 Copy to: Steven Sayce, President AMTEK Construction 12409 Slauson Avenue, Suite"I" Whittier, CA 90606 CONFORMED C-CA-011317 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 23 of 24 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: AMTEK Construction 12409 Slauson Avenue, Suite "I" Whittier, CA 90606 By Printed Name Its CONTRACTOR's State License No. 490382 (Expiration Date—4/30/2019) OCSD: Orange County Sanitation District By Gregory C. Sebourn, PLS Chair, Board of Directors By Kelly A. Lore Clerk of the Board By Marc Dubois Contracts, Purchasing and Materials Management Manager C-CA-011317 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 24 of 24 EXHIBIT A SCHEDULE OF PRICES C-EXA-080414 TABLE OF CONTENTS EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION.............................................................................1 EXA-2 PROGRESS PAYMENTS ..................................................................................1 EXA-3 RETENTION AND ESCROW ACCOUNTS........................................................1 EXA-4 STOP PAYMENT NOTICE.................................................................................3 EXA-5 PAYMENT TO SUBCONTRACTORS................................................................3 EXA-6 PAYMENT OF TAXES .......................................................................................3 EXA-7 FINAL PAYMENT...............................................................................................4 EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT...5 ATTACHMENT 1 -CERTIFICATION FOR REQUEST FOR PAYMENT.........................7 ATTACHMENT 2-SCHEDULE OF PRICES...................................................................8 C-EXA-080414 EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION CONTRACTOR will be paid the Contract Price according to the Schedule of Prices, and all other applicable terms and conditions of the Contract Documents. EXA-2 PROGRESSPAYMENTS Progress payments will be made in accordance with all applicable terms and conditions of the Contract Documents, including, but not limited to: 1. Contract Agreement—Section 11 —"Contract Price and Method of Payment;" 2. General Conditions—"Payment—General"; 3. General Conditions—"Payment—Applications for Payment'; 4. General Conditions—"Payment— Mobilization Payment Requirements;' 5. General Conditions—"Payment— Itemized Breakdown of Contract Lump Sum Prices"; 6. General Conditions—"Contract Price Adjustments and Payments"; 7. General Conditions—"Suspension of Payments"; 8. General Conditions—"OCSD's Right to Withhold Certain Amounts and Make Application Thereof"; and 9. General Conditions—"Final Payment." EXA-3 RETENTION AND ESCROW ACCOUNTS A. Retention: OCSD shall retain a percentage of each progress payment to assure satisfactory completion of the Work. The amount to be retained from each progress payment shall be determined as provided in General Conditions— "Retained Funds; Substitution of Securities". In all contracts between CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not exceed the percentage specified in the Contract Documents. CONFORMED C-EXA-080414 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 1 of 8 B. Substitution of Securities: CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." Payment of Escrow Agent: In lieu of substitution of securities as provided above, the CONTRACTOR may request and OCSD shall make payment of retention earned directly to the escrow agent at the expense of the CONTRACTOR. At the expense of the CONTRACTOR, the CONTRACTOR may direct the investment of the payments into securities consistent with Government Code §16430 and the CONTRACTOR shall receive the interest earned on the investments upon the same terms provided for in this article for securities deposited by the CONTRACTOR. Upon satisfactory completion of the Contract, the CONTRACTOR shall receive from the escrow agent all securities, interest and payments received by the escrow agent from OCSD, pursuant to the terms of this article. The CONTRACTOR shall pay to each Subcontractor, not later than twenty (20) Days after receipt of the payment, the respective amount of interest earned, net of costs attributed to retention withheld from each Subcontractor, on the amount of retention withheld to ensure the performance of the Subcontractor. The escrow agreement used by the escrow agent pursuant to this article shall be substantially similar to the form set forth in §22300 of the California Public Contract Code. C. Release of Retention: Upon Final Acceptance of the Work, the CONTRACTOR shall submit an invoice for release of retention in accordance with the terms of the Contract. D. Additional Deductibles: In addition to the retentions described above, OCSD may deduct from each progress payment any or all of the following: 1. Liquidated Damages that have occurred as of the date of the application for progress payment; 2. Deductions from previous progress payments already paid, due to OCSD's discovery of deficiencies in the Work or non-compliance with the Specifications or any other requirement of the Contract; 3. Sums expended by OCSD in performing any of the CONTRACTOR's obligations under the Contract that the CONTRACTOR has failed to perform, and; 4. Other sums that OCSD is entitled to recover from the CONTRACTOR under the terms of the Contract, including without limitation insurance deductibles and assessments. C-EXA-080414 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 2 of 8 The failure of OCSD to deduct any of the above-identified sums from a progress payment shall not constitute a waiver of OCSD's right to such sums or to deduct them from a later progress payment. EXA-4 STOP PAYMENT NOTICE In addition to other amounts properly withheld under this article or under other provisions of the Contract, OCSD shall retain from progress payments otherwise due the CONTRACTOR an amount equal to one hundred twenty-five percent (125%)of the amount claimed under any stop payment notice under Civil Code §9350 at. seq. or other lien filed against the CONTRACTOR for labor, materials, supplies, equipment, and any other thing of value claimed to have been furnished to and/or incorporated into the Work; or for any other alleged contribution thereto. In addition to the foregoing and in accordance with Civil Code§9358 OCSD may also satisfy its duty to withhold funds for stop payment notices by refusing to release funds held in escrow pursuant to public receipt of a release of stop payment notice executed by a stop payment notice claimant, a stop payment notice release bond, an order of a court of competent jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR has resolved such claim by settlement. EXA-5 PAYMENT TO SUBCONTRACTORS Requirements 1. The CONTRACTOR shall pay all Subcontractors for and on account of Work performed by such Subcontractors, not later than seven (7) Days after receipt of each progress payment as required by the California Business and Professions Code §7108.5. Such payments to Subcontractors shall be based on the measurements and estimates made pursuant to article progress payments provided herein. 2. Except as specifically provided by law, the CONTRACTOR shall pay all Subcontractors any and all retention due and owing for and on account of Work performed by such Subcontractors not later than seven (7) Days after CONTRACTOR's receipt of said retention proceeds from OCSD as required by the California Public Contract Code §7107. EXA-6 PAYMENT OF TAXES Unless otherwise specifically provided in this Contract, the Contract Price includes full compensation to the CONTRACTOR for all taxes. The CONTRACTOR shall pay all Federal, State, and local taxes, and duties applicable to and assessable against any Work, including but not limited to retail sales and use, transportation, export, import, business, and special taxes. The CONTRACTOR shall ascertain and pay the taxes when due. The CONTRACTOR will maintain auditable records, subject to OCSD reviews, confirming that tax payments are current at all times. CONFORMED C-EXA-080414 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM 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) Days after receipt of recommended changes from OCSD, the CONTRACTOR will C-EXA-080414 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 4 of 8 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 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) 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: CONFORMED C-EXA-080414 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 5 of 8 1. The true and correct amount payable for the Work is different from that previously accepted; 2. The previously-accepted Work did not in fact conform to the Contract requirements, or; 3. A previous payment or portion thereof for Work was improperly made. OCSD also shall not be stopped from demanding and recovering damages from the CONTRACTOR, as appropriate, under any of the foregoing circumstances as permitted under the Contract or applicable law. C-EXA-080414 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 6 of 8 ATTACHMENT 1 —CERTIFICATION FOR REQUEST FOR PAYMENT I hereby certify under penalty of perjury as follows: That the claim for payment is in all respects true, correct; that the services mentioned herein were actually rendered and/or supplies delivered to OCSD in accordance with the Contract. I understand that it is a violation of both the federal and California False Claims Ads to knowingly present or cause to be presented to OCSD a false claim for payment or approval. A claim includes a demand or request for money. It is also a violation of the False Claims Acts to knowingly make use of a false record or statement to get a false claim paid. The term "knowingly" includes either actual knowledge of the information, deliberate ignorance of the truth or falsity of the information, or reckless disregard for the truth or falsity of the information. Proof of specific intent to defraud is not necessary under the False Claims Acts. I understand that the penalties under the Federal False Claims Ad and State of California False Claims Act are non-exclusive, and are in addition to any other remedies which OCSD may have either under Contract or law. I hereby further certify, to the best of my knowledge and belief, that: 1. The amounts requested are only for performance in accordance with the Specifications, terms, and conditions of the Contract; 2. Payments to Subcontractors and Suppliers have been made from previous payments received under the Contract, and timely payments will be made from the proceeds of the payment covered by this certification; 3. This request for progress payments does not include any amounts which the prime CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in accordance with the terms and conditions of the subcontract; and 4. This certification is not to be construed as Final Acceptance of a Subcontractors performance. Name Title Dale CONFORMED C-EXA-080414 CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 7 of 8 ATTACHMENT 2—SCHEDULE OF PRICES See next pages from the Bid Submittal Forms (AMTEK Construction) BF-14 Schedule of Prices, Pages 1-2 C-EXA-080414 CONFORMED CONTRACT NO.J-126 A and H SAFETY IMPROVEMENTS PROGRAM Page 8 of 8 Bid Submitted By: AMTEK CONSTRUCTION (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. Bidders 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. Federal and/or State. and any other special taxes,sales taxes. Federal and/or State. and any other special taxesoatent riahts orriahts or royalties shall be included inroyalties shall be included in theoricesquoted in this Bid. this Bid. B. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID. THE LOWEST BID IS DEFINED AS THE"TOTAL AMOUNT OF BID" LISTED IN THIS BID, UNLESS OTHERWISE SPECIFIED BELOW. Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials, equipment and services for the construction of the Project per the Invitation for Bids. E" BF-14 SCHEDULE OF PRICES C-BF-021115 CONTRACT NO.J-125 A and H SAFETY IMPROVEMENTS PROGRAM Page 1 of 2 s a o Z : a o LO m'+a O z V r C) N N� t9 W W V W y O tt za Z 02 O a U = a y ' m W H Q E ao m v y E E a = n n m > > m U G K `o= r a s C 3 N w' d0 m O W = Q O Q N W N C L E I W p N W E u m m w0 mv� 0 •- n m a w d m 3ci 2 mtt tZy m N EZE o y E m `o 0 m5 - m pc xry '0 « O N L U O Y Z C C N V p N O O - Ol i+ 6 y E C 2� � n�jo J N w N C N M > U Q C p T O L N N « I- C N a U N N O N O C « N C w rnE d,`o 10 dU 0 0 0 — d x d Z n 0 0wr � EYt w r 5 o E a = p ... o00 — c LLO y O E .- m o 2 " L � € w .CJ E „ m EU j W p � U$ m 'G woo w i m m w iz. N LL m m OPERATIONS COMMITTEE Meeting Date TOBd.Ot Dir. 12J05/17 12/20/17 AGENDA REPORT IWmNumber Item Number B Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: EDINGER PUMP STATION REHABILITATION STUDY, PROJECT NO. PS15-02 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Services Agreement with Lockwood, Andrews& Newnam, Inc., to provide engineering services for the Edinger Pump Station Rehabilitation Study, Project No. PS15-02, for an amount not to exceed $505,042; and B. Approve a contingency of$50,504 (10%). BACKGROUND Edinger Pump Station was constructed in 1965 and is one of the Orange County Sanitation District's (Sanitation District)smaller pump stations, located in an underground vault below Edinger Avenue in the City of Huntington Beach. This station pumps approximately 2 mgd of sewage from the City of Huntington Beach to the Slater Pump Station, which then flows to Plant No. 1 in Fountain Valley. This project will perform a planning-level study for the Edinger Pump Station to determine if the station should be rehabilitated or abandoned and replaced. This study will develop and evaluate multiple alternatives that will take into account code compliance, safety, and access issues. RELEVANT STANDARDS • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, lighting, and safety • 24/7/365 treatment plant reliability • Less than 2.1 sanitary sewer spills per 100 miles • CA Government Code 4526: Select the "best qualified firm" and "negotiate fair and equitable fees." PROBLEM The Edinger Pump Station has corrosion of its piping, wet well, and drywell, in addition to code compliance, traffic, safety, and access issues. Page 1 or 4 In its current configuration, the pump station has some major risks, including adjacency to a flood control channel that threatened to overflow the banks during a major wet-weather event last winter. The pump station is located in the public right of way and is accessed through a hatch in the sidewalk. This configuration causes traffic, safety, and maintenance vehicle parking issues. PROPOSED SOLUTION This study will conduct detailed investigative assessments to analyze and determine if the pump station should be rehabilitated or abandoned and replaced. TIMING CONCERNS Continuous deterioration of the pump station could lead to failure, spills, fines, and costly repairs. Conducting this study now will provide guidance to the Sanitation District's timely decision-making process in selecting the best solution for its Capital Improvement Project for long-term reliability, operations, maintenance, safety, and compliance. RAMIFICATIONS OF NOT TAKING ACTION Not performing the Edinger Pump Station Rehabilitation Study and providing recommendations for either rehabilitation, reconstruction, or abandonment and replacement of the pump station increases the risk of the Sanitation District not selecting the best capital project for long-term public health and safety. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Consultant Selection: The Sanitation District advertised a Request for Proposal (RFP) for the Edinger Pump Station Rehabilitation Study, Project No. PS15-02, on August 9, 2017. The following evaluation criterion were described in the RFP and used to determine the most qualified Consultant. CRITERION WEIGHT Project Understanding and Approach 35% Related Project Experience 30% Project Team and Staff Qualifications 35% Three proposals were received on September 14, 2017 and evaluated in accordance with the evaluation process set forth in the Sanitation District Purchasing Ordinance No. Page 2 d 4 OCSD47 (Purchasing Ordinance), by a pre-selected Evaluation Team consisting of the following Sanitation District staff. William Cassidy Engineering Supervisor— Civil and Mechanical Engineering Raul Cuellar Engineering Supervisor—Collections Const. Management James Cabral Maintenance Supervisor— Collections Facilities Wendy Smith Project Engineer- Planning Hardat Khublall CIP Project Manager— Project Management Office The Evaluation Team also included one non-voting representative from the Contracts Administration Division. Following scoring by the Evaluation Team, all three Consultants were shortlisted for interviews on October 17, 2017. Following the interviews, each member of the Evaluation Team ranked the Consultants based on both the proposals and interviews using the evaluation criterion and weighting described above. Based on the ranking shown below, Lockwood, Andrews & Newnam, Inc. was selected as the most qualified Consultant. PROPOSAL EVALUATION Lockwood, Andrews & AECOM Tetra Tech Newnem Inc. Evaluator 1st 2nd 3rd Evaluator 1st 2nd 2nd Evaluator C 1st 2nd 3rd Evaluator D 2nd 3rd 1st Evaluator E 1st 2nd 3rd Overall Ranking 1st 2nd 3rd The team from Lockwood, Andrews & Newnam, Inc. demonstrated where they have worked with other agencies and cities to guide them through the process of performing a similar feasibility Study. Review of Fee Proposal and Negotiations: Proposals were accompanied by sealed fee proposals. In accordance with the Purchasing Ordinance, the fee proposal of only the highest-ranked firm was opened after approval by the Director of Engineering of the Evaluation Committee's recommendation. Staff conducted negotiations with Lockwood, Andrews & Newnam, Inc. to clarify the requirements of the Scope of Work, the assumptions used for the estimated level of effort, and the proposed approach to meet the goals and objectives for the project. One negotiation meeting was held that resulted in changes made to the scope of work, fringe percentage, and overhead rate used in calculation of the Consultant's fees. Page 3 of 4 Original Fee Negotiated Fee Proposal Total Hours 2338 2338 Total Fee $513,583 $505,042 The Consultant's fringe and overhead costs, which factor into the billing rate, have been substantiated. The contract profit for the prime consultant is 10%, which is based on an established formula based on the Sanitation District's standard design agreements. Based on the above, staff has determined that the final negotiated fee is fair and reasonable for the level of effort required for this project and recommends award of the Professional Services Agreement to Lockwood, Andrews & Newnam, Inc. CEQA A Notice of Exemption will be filed after the Board of Directors approves the proposed Edinger Pump Station Rehabilitation Study. The study is exempt from CEQA pursuant to CEQA Guidelines Section 15262 [Feasibility and Planning Studies]. This study will be used as a planning tool for possible future action. The proposed Edinger Pump Station Rehabilitation Study will analyze and make recommendations. This will be in regards to potential infrastructure improvements that may be needed to ensure that the Sanitation District continues to meet its critical health and safety mandate. In addition, environmental factors will be taken into account in the study. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. Budget for the project, PS15-02, Edinger Pump Station Rehabilitation Study, is included in the Master Planning Studies budget update for Fiscal Year 2017-18 (Line item: Section A-9). Date of Approval Contract Amount Contingency 12/20/17 $505,042 $50,504 (10%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: Professional Services Agreement HK:sa:gc Page 4 of 4 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 20' day of December, 2017, by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT', and LOCKWOOD, ANDREWS & NEWNAM, INC. (LAN), for purposes of this AGREEMENT hereinafter referred to as "CONSULTANT". The SANITATION DISTRICT and CONSULTANT are referred to herein collectively as the "Parties" or individually as a "Party." WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a consultant for Edinger Pump Station Rehabilitation Study, Project No. PSIS-02, to provide professional services for the planning study of the Edinger Pump Station; and, WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on December 20, 2017 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 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, and completeness and coordination of the work and 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 applicable laws, regulations, 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. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 1 of 19 B. CONSULTANT is responsible for the quality of work prepared under this AGREEMENT and shall perform all work in conformance with the skill and care normally performed by other professionals providing similar work in a similar location at a similar time to meet industry standards for clarity, uniformity, and completeness. CONSULTANT shall timely respond to all comments, suggestions, and recommendations from the SANITATION DISTRICT. All comments from the SANITATION DISTRICT, or its agent, shall be incorporated into the work prior to the next review deadline or addressed, in writing, as to why the comment(s) has/have not been incorporated. CONSULTANT shall ensure that each submittal is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.) C. In the event that CONSULTANTS services and/or work product(s) is not to the satisfaction of the SANITATION DISTRICT and/or does not conform to the requirements of this AGREEMENT or the applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its work product(s)within the timeframe specified by the Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. Any CADD drawings, figures, and other work produced by CONSULTANT and Subconsultants using the SANITATION DISTRICT CAD Manual. 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 conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and require advance written approval of the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of 30 calendar days during which the SANITATION DISTRICT shall perform appropriate reviews and including CAD Manual compliance. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANTITATION DISTRICT. E. All professional services performed by the CONSULTANT, including, but not limited to, all drafts, data, correspondence, proposals, and reports 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, or(b) subsequently becomes publicly known to the CONSULTANT other than through disclosure by the SANITATION DISTRICT. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 2 of 19 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 Five Hundred Five Thousand and Forty-Two Dollars ($505,042). 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. 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. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 3 of 19 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 Attachment"K"— Minor Subconsultants 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. 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 PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 4 of 19 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 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. 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 seventy-five percent (75%) of 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. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 5 of 19 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, in a format acceptable to the SANITATION DISTRICT. CONSULTANT shall warrant and certify the accuracy of these costs and provide all support documentation required by the SANITATION DISTRICT. CONSULTANT understands that submitted costs are subject to Section 12 Audit Provisions. B. CONSULTANT will submit monthly statements covering services and/or work performed for payment for those items included in Section 2 hereof no later than the second Wednesday of the following month and in the format required by the SANITATION DISTRICT. The format must include, as a minimum: 1)current billing period invoicing, 2) current billing period "total percent invoiced to date", 3)future activities, 4) previous billing period "total invoiced to date", 5) potential items that are not included in the Scope of Work, 6) concerns and possible delays, 7) percentage of completion to date, and 8) budget status and amount remaining. Such requests shall be accompanied by such supporting data 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. 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: 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, The SANITATION DISTRICT may, at the discretion of the Director of Engineering, 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 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 PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 6 of 19 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 based on the monthly statements, 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 $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(a) 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. S. PREVAILING WAGES To the extent CONSULTANT intends to utilize employees who will perform work during the contract, as more specifically defined under Labor Code Section 1720, CONSULTANT shall be subject to prevailing wage requirements with respect to such employees. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 7 of 19 6. 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 at 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). 7. DOCUMENT OWNERSHIP—CONSULTANT PERFORMANCE A. Ownership of Documents for the Professional Services performed. All documents in all forms (electronic, paper, etc.), including, but not limited to, studies, sketches, drawings, computer printouts, disk files, and electronic copies 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 or liable for damage caused by subsequent changes to or uses of the study or deliverable on any other project or extension of this project where the subsequent changes or uses are not PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 8 of 19 authorized or approved or adapted for use by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. 8. 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 ($2,000,000)aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability (for this AGREEMENT), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, owners and contractors protective liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement($). 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. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 9 of 19 D. AutomotiveNehicle 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 Two Million Dollars ($2,000,000)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. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 10 of 19 In the event the present policy of insurance is written on "per 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 10 01 and CG 2037 10 01 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. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 11 of 19 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 The General and Automobile 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 The General and Automobile 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. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 12 of 19 N. Defense Costs Excepting Professional Liability insurance 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. Subronsultants 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, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. 9. SCOPE CHANGES In the event of a change in the Scope of Work or a change in the proposed Project, as requested by the 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. 10. 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 under this AGREEMENT by CONSULTANT. CONSULTANT shall include a description of the work and services to be done by each Subconsultant and each of CONSULTANT's Project team member. CONSULTANT shall include the respective compensation amounts for CONSULTANT and each Subconsultant, 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. 11. ENGINEERING REGISTRATION The CONSULTANTS personnel and Subconsultants 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, the services of a registered engineer is required, such services hereunder will be performed under the direct supervision of registered engineers who are registered in California. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 13 of 19 12. 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. 13. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to transform CONSULTANT, its staff, independent contractors, or Subconsultants into employees of the SANITATION DISTRICT. CONSULTANT's staff performing services under the AGREEMENT shall at all times be employees and/or independent contractors of CONSULTANT. CONSULTANT shall monitor and control its staff and pay wages, salaries, and other amounts due directly to its staff in connection with the AGREEMENT. CONSULTANT shall be responsible for hiring, review, and termination of its staff and shall be accountable for all reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation, workers' compensation and similar matters. 14. 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. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 14 of 19 Notice shall be mailed to the SANITATION DISTRICT at: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Michelle Hadaway, Senior Contracts Administrator Copy: Hardat Khublall, Project Manager Notice shall be mailed to CONSULTANT at: LOCKWOOD, ANDREWS & NEWNAM, INC. (LAN) 770 The City Drive South Suite 8425 Orange, CA 92868 Attention: M. Cenk Yavas, PE, D.WRE All communication regarding the Scope of Work, will be addressed to the Project Manager. Direction from other SANITATION DISTRICT staff must be approved in writing by the SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT. 15. 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 at the address listed in Section 14 - NOTICES. 16. 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, electronic materials, computation and study materials in its files pertaining to the work described in this AGREEMENT, which is requested in writing by the SANITATION DISTRICT. 17. 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. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 15 of 19 18. 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 this AGREEMENT for that Party. 19. 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. 20. 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 he may be entitled. 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, CONSULTANT's, 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 CONSULTANT's fees and costs and the SANITATION DISTRICT's general and administrative expenses; individually, a "Claim"; 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, CONSULTANT, 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 solely from: PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 16 of 19 (A)the 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. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 17 of 19 24. COMPLIANCE WITH SANITATION DISTRICT POLICIES AND PROCEDURES CONSULTANT shall be required to comply with all SANITATION DISTRICT policies and procedures including the OCSD Safety Standards, as applicable, all of which may be amended from time to time. 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 the 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. PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 18 of 19 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. LOCKWOOD, ANDREWS & NEWNAM, INC. (LAN) By Date Printed Name &Title ORANGE COUNTY SANITATION DISTRICT By Gregory C. Sebourn, PLS Date Chair, Board of Directors 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"—Labor Hour Matrix Attachment"C'—Conflict of Interest Disclaimer Attachment"D"—Allowable Direct Costs Attachment"E"—Fee Proposal Form Attachment"F"— Professional Services Agreement (PSA) Attachment"G"—Acknowledgement of PSA Attachment"H"— Not Used Attachment"I"— Cost Matrix and Summary Attachment"J"—Acknowledgement of Addenda Receipt Attachment"K"—Minor Suboonsultants Hourly Rate Schedule Attachment"L"—OCSD Safety Standards MH:yp PROFESSIONAL SERVICES AGREEMENT PROJECT NO. PS15.02 CONFORMED EDINGER PUMP STATION REHABILITATION STUDY Page 19 of 19 OPERATIONS COMMITTEE Meeting Date TOBd.of Dir. 17J06/17 12/20/17 AGENDA REPORT emNumber Item Number 9 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: BAY BRIDGE PUMP STATION AND FORCE MAINS REPLACEMENT PROJECT, PROJECT NO. SPA78 GENERAL MANAGER'S RECOMMENDATION A. Consider, receive, and file the Final Environmental Impact Report for the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. SP-178, dated December 2017; and B. Adopt Resolution No. OCSD 17-XX, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Adopting the Environmental Impact Report for the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. SP-178; Adopting the Mitigation Monitoring and Reporting Program; and Approving the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. SP-178." BACKGROUND The Orange County Sanitation District (Sanitation District) owns and operates the Bay Bridge Pump Station in the City of Newport Beach. It is located on West Coast Highway and is adjacent to the Newport Back Bay Channel. The force mains cross the channel and connect to the existing Newport Beach force main network. The volume of flow through the Bay Bridge Pump Station accounts for 50-60% of Newport Beach's wastewater. The pump station is surrounded by a storage and marine-use yard that will soon be developed into a three-story mixed-use residential, commercial, and boat storage space. The Bay Bridge Pump Station and associated force mains piping requires replacement to address aging infrastructure, comply with current safety and engineering standards, and increase the flow rapacity of the station to accommodate future growth in the region. The existing system was built in 1966 and rehabilitated in 1992. The proposed Bay Bridge Pump Station and Force Mains Replacement Project will relocate and expand the current pump station and associated force mains. The Sanitation District is required to prepare a California Environmental Quality Act (CEQA) document to analyze the potential environmental impacts of the proposed project and project alternatives. The preferred alternative is to build a new pump station and force main system while the existing system is in operation. After completion, the existing pump station will be demolished and the restored site exchanged with the surrounding property owner so it can be used for the development. The proposed pump station site will allow safer access Page 1 of 3 1276106A for maintenance personnel, the addition of an on-site odor control system, and be out of the public view from East Coast Highway and the proposed mixed-use development. The new force main system will require crossing under the Newport Back Bay Channel and East Coast Highway. RELEVANT STANDARDS • Listen to and seriously consider community input on environmental concerns • Meet CEQA and NEPA standards PROBLEM The pump station is over 50 years old and does not meet Sanitation District safety and engineering code standards. Access to the pump station is limited and poses a potential safety hazard for the Sanitation District. The planned construction of a three-story mixed-use development around the pump station will also require the addition of an on-site odor control system. The existing pump station force main piping is undersized, aging, cannot be maintained due to its location under the Back Bay channel, and is reaching the end of its useful life. Final Design for this project will commence once the Sanitation District demonstrates compliance with CEQA. PROPOSED SOLUTION Complete CEQA so the project may proceed into design, construction, and eventual completion. TIMING CONCERNS Constructing the new facilities in advance of the proposed surrounding development will allow more space for construction staging and have less community impacts. The surrounding property owner is planning to begin construction in early 2020. RAMIFICATIONS OF NOT TAKING ACTION The project cannot proceed without this environmental finding. PRIOR COMMITTEE/BOARD ACTIONS September 24, 2014 -Approve a Professional Services Agreement with RBF Consulting to provide engineering design services for Bay Bridge Pump Station and Force Mains Replacement Project, Project No. SP-178, for an amount not to exceed $475,308, and approve a contingency of$47,530 (10%). ADDITIONAL INFORMATION The project is transitioning into the preliminary design phase and the Sanitation District plans to advertise for construction bids by March 2019. Construction is expected to be completed by November 2023. Page 2 of 3 1276106.1 CEQA The Sanitation District, as lead agency, prepared an Initial Study analyzing the project's potential environmental impacts. Based on the Initial Study, the Sanitation District determined that an Environmental Impact Report must be prepared for the project. The Sanitation District subsequently issued a Notice of Preparation (NOP) that was made available for a 30-day public review period from November 10, 2016 to December 9, 2016. The NOP was also submitted to the State Clearinghouse (State Clearinghouse No. 2016111031). A Draft Environmental Impact Report (Draft EIR) was developed and distributed for a 45-day public review period from June 21, 2017 to August 4, 2017. A public hearing was held on July 17, 2017. The Final Environmental Impact Report (Final EIR) (State Clearinghouse No. 2016111031) found that the project's significant environmental impacts can be avoided or reduced to less than significant levels through the adoption of mitigation measures. These conclusions are supported by additional findings by the Sanitation District that the proposed mitigation measures are feasible and will avoid or substantially reduce any significant environmental effects of the project. These mitigation measures are described in the Mitigation Monitoring and Reporting Plan prepared for this project and included in the Final EIR. Because the project, as mitigated, poses no significant environmental impacts, CEQA does not require the Sanitation District to make additional findings regarding recommended project alternatives, or adopt a statement of Overriding Considerations in relation to this project. The Sanitation District received 14 comments on the Draft EIR, which are included as Section 2.0 of the Final EIR. The comments were from public agencies as well as members of the public. Pursuant to CEQA Guidelines Section 15088(c), the Final EIR includes written responses to those comments (Section 2.0). The proposed Resolution making the required CEQA findings and adopting the Final EIR and Mitigation Monitoring and Reporting Program is attached for the Board of Directors' consideration and approval. FINANCIAL CONSIDERATIONS N/A ATTACHMENTS The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: • Resolution No. OCSD 17-XX • Final Environmental Impact Report includes the Mitigation Monitoring and Reporting Program (electronic document) KH:sa:gc Page 3 of 3 1276106.1 RESOLUTION NO. OCSD 17-XX WHEREAS, the Orange County Sanitation District (the "District") is presently considering the approval of a project known as the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. SP-178 (the "Project). WHEREAS, pursuant to the California Environmental Quality Act (Public Resources Code Sections 21000 et seq. ("CEQA")) and the CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.), the District, as lead agency, prepared a Draft Environmental Impact Report ("DEIR") (State Clearinghouse Number 2016111031) that reflected the independent judgment of the District as to the potential environmental impacts of the Project. The DEIR determined that the Project would not have significant impacts on the environment with the incorporation of feasible mitigation measures, and therefore the District has not prepared a Statement of Overriding Considerations for the Project; and WHEREAS, the District has consulted with other public agencies and the general public, and provided such agencies and the public with the opportunity to provide written and oral comments on the Project and the Environmental Impact Report as required by CEQA, including a public review period of 45 days which commenced on June 21, 2017 and ended on August 4, 2017. WHEREAS, on July 17, 2017, District staff held a public meeting to provide a further opportunity for public agencies and the general public to comment on the DEIR; and WHEREAS, the District has reviewed the comments received and has responded in the Final Environmental Impact Report to all significant environmental issues raised during the review and consultation process; WHEREAS, the comments received on the DEIR, either in full or in summary, together with the District's responses, have been included in the Final Environmental Impact Report for the proposed Project; and WHEREAS, the Final Environmental Impact Report, including the comments received by the District on the Draft Environmental Impact Report, has been presented to the District's Board of Directors (the "Board") for review and consideration prior to the approval of, and commitment to, the Project, and the certification of the Final Environmental Impact Report, and approval of the Mitigation Monitoring Program is consistent with the provisions of CEQA. 1143523.1 OCSD 17-XX-1 127a 50.1 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER: 1. The Board of Directors certifies that the Final Environmental Impact Report, attached to this Resolution as Exhibit A, including comments and responses thereto, has been completed in compliance with CEQA and represents a complete and adequate description of the environmental conditions of the proposed Project; 2. The Board of Directors has independently reviewed and considered the Environmental Impact Report together with all comments received during the public review process; 3. The Environmental Impact Report reflects the independent judgment and analysis of the Board; 4. The Board of Directors finds on the basis of the whole record before it that there is no substantial evidence that the Project, as mitigated, will have a significant effect on the environment; 5. The Board of Directors adopts the Mitigation Monitoring and Reporting Program (the "MMRP"), included in Exhibit A, to ensure that all mitigation measures identified in the Mitigated Negative Declaration are implemented; 6. The Environmental Impact Report has been completed in compliance with the requirements of CEQA and is hereby adopted; 7. The Board of Directors approves the Bay Bridge Pump Station and Force Mains Rehabilitation Study, Project No. SP-178. 8. The documents and other materials that constitute the record of proceedings on which the Board of Directors decision is based are located at the District Administration Offices, 10844 Ellis Avenue, Fountain Valley, CA 92708 and the custodian for these documents is the Clerk of the Board. 9. District staff is authorized and directed to file the Notice of Determination (NOD) and any other documents in accordance with the requirements of CEQA. 1143523.1 OCSD 17-XX-2 127a 50.1 PASSED AND ADOPTED at a regular meeting of the Board of Directors held December 20, 2017. Gregory C. Sebourn, PLS Board Chairman ATTEST: Kelly A. Lore, CMC Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin General Counsel 1143523.1 OCSD 17-XX-3 127a 50.1 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 17-XX was passed and adopted at a regular meeting of said Board on the 20th day of December 2017, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 20th day of December, 2017. Kelly A. Lore, CIVIC Clerk of the Board of Directors Orange County Sanitation District 1143523.1 OCSD 17-XX-4 127a 50.1 OPERATIONS COMMITTEE Meeting Date TOBd.Ot Dir. 12J05/17 12/20/17 AGENDA REPORT IWm1umber Item Number 0 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: 2017 FACILITIES MASTER PLAN GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 17-XX entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Adopting the 2017 Facilities Master Plan as the Orange County Sanitation District's New Master Plan for Future Capital Planning and Repealing Resolution No. OCSD 09-18." BACKGROUND Since its inception, the Orange County Sanitation District (Sanitation District) has managed its facilities through the preparation and implementation of long-term master plans. Most recent master planning efforts include the 1999 Strategic Plan, 2002 Strategic Plan Update, 2006 Collection System Model and Strategic Plan Update, and 2009 Facilities Master Plan. Since the last master planning effort, the Sanitation District has been working towards creating a more comprehensive Capital Improvement Program (CIP) plan. The Engineering Department has been developing a more detailed 20-year plan for facility rehabilitation, refurbishment, and replacement. Staff has evaluated the condition, capacity, level of service requirements, and technology opportunities in each treatment plant process area and in the collection system. To address these needs and issues, a list of potential projects with scope elements has been developed for the next 20 years. The 2017 Facilities Master Plan (Master Plan)validated the scopes and budgets for these projects, prioritized them based on needs and criticality, and developed a CIP plan for the next 20 years. The 20-year CIP for both the collection system and treatment plants totals $5 billion. • The Master Plan identifies the capital improvement needs of the Sanitation District through 2037, to meet level of service standards identified in the Five-Year Strategic Plan. • The Master Plan recommends a large number of capital improvements for rehabilitation, renewal and replacement, and the supporting studies. • The Master Plan incorporates the results of three recently completed planning projects including the Effluent Reuse Study, the Odor Control Master Plan, and the Biosolids Master Plan. These projects evaluated alternatives and recommended CIP projects needed to address mid-and long-term biosolids needs, and to meet Sanitation District initiatives such as maximizing beneficial reuse of effluent and minimizing odor impacts Page 1 d 3 to neighbors. Three of the eight strategic goals from the Sanitation District's current Five-Year Strategic Plan were addressed by these projects. • The costs of these improvements were previously identified by the Asset Management Plan and incorporated into the Rate Program in the "Rehabilitation, Renewal and Replacement" line item. The Rate Program will be adjusted by transferring the $721 million cost from this line item to the CIP line item. • The completion and adoption of the Master Plan allows the Sanitation District to stay in compliance with the Capacity Assurance Planning requirement of the Statewide Waste Discharge Requirements Order, which was adopted by the State Water Resource Control Board in May 2, 2006. RELEVANT STANDARDS • 1, 5, 20-year planning horizons • Maintain a proactive asset management program PRIOR COMMITTEE/BOARD ACTIONS July 2016 - Approved a Professional Services Agreement with Carollo Engineers, Inc. to provide professional services for 2017 Facilities Master Plan, Project PS15-10, for an amount not to exceed $3,132,052; and approved a contingency of$313,205 (10%). ADDITIONAL INFORMATION A rate study recommending sewer connection fees and user fees was conducted as part of the 2017 Facilities Master Plan. CEQA CEQA Guidelines Section 15262 provides that a project involving only feasibility or planning studies for possible future actions,which the agency has not approved, adopted, or funded, does not require the preparation of an EIR or negative declaration, but does require consideration of environmental factors. This exemption does not apply to the adoption of a plan that will have a legally binding effect on later activities. The 2017 Facilities Master Plan is a feasibility/planning study that will be used to assist in the evaluation and planning of future projects. The Facilities Master Plan will not have a legally binding effect on later activities, but will instead be used to analyze potential future actions, which the Sanitation District has not yet approved, adopted, or funded. Pursuant to CEQA Guidelines Section 15262, the Facilities Master Plan does not require the preparation of an EIR or Negative Declaration. Thus, a Notice of Exemption was filed for this project on July 28, 2016. All projects evaluated under the 2017 Facilities Master Plan must comply with CEQA before they are approved, adopted, or implemented. The Sanitation District may choose to perform a CEQA determination for multiple projects via a Programmatic EIR, or for each individual project. Page 2 of 3 FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: Resolution No. OCSD 17-XX 2017 Facilities Master Plan Executive Summary 2017 Draft Facilities Master Plan (electronic document) KM:EY:gc Page 3 of 3 RESOLUTION NO. OCSD 17-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING THE 2017 FACILITIES MASTER PLAN AS THE ORANGE COUNTY SANITATION DISTRICT'S NEW MASTER PLAN FOR FUTURE CAPITAL PLANNING AND REPEALING RESOLUTION NO. OCSD 09-18 WHEREAS, on December 16, 2009, the Board of Directors of the Orange County Sanitation District ("Sanitation District") approved Resolution No. OCSD 09-18, adopting the 2009 Facilities Master Plan, a Master Plan for new facilities through the year 2030; and WHEREAS, on December 20, 2017, the Board of Directors of the Sanitation District reviewed the 2017 Facilities Master Plan, a Master Plan for new facilities through the year 2037; and WHEREAS, the Sanitation District is the lead agency for the 2017 Facilities Master Plan, pursuant to the California Environmental Quality Act of 1970, as amended, ("CEQA") and the State CEQA Guidelines. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: Section 1: That the Board hereby adopts the 2017 Facilities Master Plan for future capital planning through the year 2037. Section 2: Resolution No. OCSD 09-18, adopted December 16, 2009, adopting the 2009 Facilities Master Plan, a Master Plan for new facilities through the year 2030, is hereby repealed. 1292802.1 OCSD 17-XX-1 Section 3: Environmental review is not required under CEQA pursuant to CEQA Guidelines §15262 because the 2017 Facilities Master Plan will not have a legally binding effect on later activities it is only a feasibility/planning study for possible future actions which the Sanitation District has not approved, adopted, or funded and the Sanitation District has considered environmental factors as required. PASSED AND ADOPTED at a regular meeting of the Board of Directors held December 20, 2017 Gregory C. Sebourn, PLS Board Chairman ATTEST: Kelly A. Lore, CMC Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin General Counsel 1292802.1 OCSD 17-XX-2 STATE OF CALIFORNIA ) as COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 17-XX was passed and adopted at a regular meeting of said Board on the 20th day of December 2017, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 20th day of December 2017. Kelly A. Lore, CMC Clerk of the Board of Directors Orange County Sanitation District 1282802J OCSD 17-XX-3 .�► F� � A.: r.: �. ... f,. may- w� . 2017 ORANGE COUNTY SANITATION DISTRICT Wastewater Collection and Treatment Facilities Master Plan ..................................................................................................... Executive Summary __o LThis 2017 Facilities Master Plan provides a framework for the continuation of i sustainable wastewater collection and --- treatment in Central _ and Nort■he■rn Orange County. <,^ — Eros Yong, P.E., BCEE, PIMP Planning Division f Engineering Supervisor Message from Our Director of Engineering Dear Orange County Residents: Many things have happened since preparation of our last Master Plan in 2009. The Orange County Sanitation District (OCSD) has completed capital expenditures of over$500 million for transition to full secondary treatment facilities to improve the quality of our treated wastewater discharge to the Ocean as well as provide a higher quality effluent to support our partnership with the Orange County Water District in the world's largest indirect potable reuse program,the Groundwater Replenishment System. As Orange County continues to grow and evolve to a more urban environment, OCSD must grow with it to provide resilient service and enhanced resource recovery. For the past year, OCSD has been developing our 2017 Facilities Master Plan.This plan provides a comprehensive analysis of the condition and capacity of our wastewater infrastructure, including our collection system trunk sewers and pump stations,as well as our treatment facilities at both Plant No. 1 in Fountain Valley and Plant No. 2 in Huntington Beach. Understanding the condition and capacity of the existing facilities,the Master Plan assessed new technology opportunities,anticipated regulatory changes,and resource recovery options to create a roadmap of facility evaluation which supports our mission over the next 20 years. This Executive Summary provides an overview of the information obtained and generated during preparation of this Master Plan. It is a compilation of the status of OCSD's existing infrastructure as well as OCSO's future direction for adding, rehabilitating,and replacing facilities.The Master Plan provides a framework for the evolution of sustainable wastewater collection and treatment throughout Central and Northern Orange County. A Rob Thompson, P.E. Director of Engineering 3 TABLE OF CONTENTS 6 Introduction to the 2017 f Facilities Master Plan A quick explanation of who we are,what f we are doing,and why we are doing it OCSD's Wastewater Treatment and Resource Recovery ,UJ What we do with Orange County's Wastewater i 1 Drivers that Shape the f 2017 Facilities Master Plan Our response to the challenges j and opportunities we face in the next 20 years Recommended Projects: ^ f'1 COLLECTION SYSTEM I `{J Improvements to maintain the integrity of our trunk sewer system and pump stations E 1 r : Recommended Projects: l`-J1 TREATMENT PLANTS i Replacing aging treatment facilities ! and adopting newer technologies Our Capital Improvement Program I }l{J What our projects will cost and how they will be paid for 1 ; What's Next? 9 '• Where we go from here 6 �s ............. ......................... _ Who We Are =� Ar = The Orange County Sanitation District (OCSD) is the F. third largest regional wastewater agency west of the Mississippi River, providing wastewater collection, 01 r treatment, and recycling services for the 2.6 million m people of central and northern Orange County, with an average daily wastewater Flow of 185 million gallons per day (MGD) from residential, commercial, > :3 and industrial sources. � ��.�;r a .._ look r► I _ 5 Introduction to the 2017 Facilities Master Plan OCSD's sewer service has two main components:the collection system and the treatment and recycling facilities.The collection system contains 15 pump stations OCSD is governed by and 396 miles of regional trunk sewer that collect wastewater from OCSD's member Board 479-square-mile service area.This wastewater is conveyed to Reclamation Plant Directorsof • No. 1 in Fountain Valley and Treatment Plant No.2 in Huntington Beach,where treatment and resource recovery take place. representative appointed from each of our twenty While some of this treated water is released five miles off shore through a deep cities,four special districts, water ocean outfall system,most is recovered into Orange County's main water supply.This is accomplished by way of a joint project with the Orange County and the Orange County Water District,the Groundwater Replenishment System-the world's largest Board of pe ' advanced water purification system for indirect potable reuse. OUR MEMBER HASNA SflfA AGENCIES MUCH SODA • Anaheim • Brea Y DEW • Buena Park Iflf S ANAHEIM RUA • Cypress P" • Fountain Valley NGE ORA A �"ROS Afl"f • Fullerton fl0° • Garden Grove —BEACH Ix �^ p° • Huntington Beach P ANC Irvine Reclamation Plant No. 1 " La Habra La Palma NU 6T " MveM • Los Alamitos Treatment Plant No.2 ' '°" mell NSA • Newport Beach Emergency Outtall • Orange 1.5 mile long • Placentia NfWPOfli 6.5400t diameter EWPOR BEACH - Santa Ana Offshore Outtall • Seal Beach 5 miles long 10-foot diameter • Stanton service • Tustin regional 479 area • Villa Park • Costa Mesa Sanitary District 3 9 6 trunk sewer square MILES MILES • Midway Sanitary District • Irvine Ranch Water District 15 pump • Yorba Linda Water District stations • County of Orange 1 WHAT IS A MASTER PLAN AND WHY DO WE NEED ONE? A facilities master plan is a long-term planning document that addresses the wastewater collection,treatment, recycling, and ocean outfall facility needs for OCSD over a defined planning period.The major goals of this Facilities Master Plan are to identify a phased 20-year program of capital improvement projects that maintain reliability and accommodate future growth, as well as meet future regulatory requirements, level of service goals,and strategic initiatives.With this plan, OCSD can identify the capital investments needed to achieve its goals and adjust rate structures to produce the necessary cash flow. The four major drivers of this Facilities Master Plan: CONDITION CAPACITY REGULATIONS INITIATIVES Aging Infrastructure Increases in wastewater New regulations and OCSD's service goals requiring rehabilitation flow and loading requirements and strategic initiatives or replacement In this Master Plan,most of the projects identified are the result of the need to rehabilitate and replace aging infrastructure in the collection system and treatment plants. It is OCSD's charge to maintain the integrity of assets that serve as the basis for its every day operation.The identified projects prepare the facilities to operate for the next 20-30 years with asset management. .................................................................. THE MASTER PLAN CONTAINS THE 2017 Facilities Master Plan (FMP) Project Development FOLLOWING MAJOR CHAPTERS DATA COLLECTION Chapters 1-6 CONDITION ' 2009 `MP • Provide comprehensive descriptions of ASSESSMENT existing facilities - .................7 ................ Chapter 7 CONDITION I �. ; ♦CAPACITY i Planning Assumptions: • Evaluates future demands that must REGULATIONS ♦OCSDINITIATIVES be met, including wastewater flows .................i................. and loads,regulatory requirements, and OCSD service goals and strategic '• initiatives. ` ® i Chapter 8 j .................I................ End of Life Analysis: • Evaluates the condition and remaining useful life of the collection system and treatment facilities to determine when ............................. major rehabilitation or replacement must f occur. Chapter 9 i Project Identification: ................. ................. • Identifies specific projects to meet future demands and to rehabilitate or replace aging facilities. Chapter 10 E Implementation Plan: • Identifies specific implementation timing of projects and cash flow needs for the ' 20-year planning period. i................................................................ WHAT WE DO WITH ORANGE COUNTY WASTEWATER The wastewater treatment process treats municipal, commercial, and industrial sewage, removing contaminants before sending the water to Orange County Water District for the Groundwater Replenishment System (GWRS) for reuse or before releasing to the ocean. In 2001, OCSD's Board of Directors voted to take their operating facilities to full secondary treatment,a higher level of treatment that uses biological processes to remove up to 90 percent of organic matter from wastewater.This investment was made to ensure that high-quality water is released into the ocean and provided to the GWRS. Full secondary treatment was achieved in 2012. OCSD is a leader in water,energy,and solids resource recovery;the process of capturing specific waste materials and repurposing them into viable next use,much like municipal waste recycling and composting. For wastewater treatment,this process extends to collecting, extracting,and reusing resources in wastewater. OCSD actively engages in these cost-effective and environmentally safe recycling efforts to return pure drinking water, usable biosolids, and clean energy to the community. 4 STEP PRELIMINARY TREATMENT Screening and grit removal remove larger objects and materials that clog-up downstream treatment processes; anything from rags and floss to coffee grounds.At this point,the water still includes biodegradable solids and dissolved organics. STEP HCOLLECTION When you flush the toilet,take a shower, or drain dishwater from your sink,the wastewater goes down the drain and into a series of sewer pipes that connect to one of OCSD's treatment plants. RESOURCES THAT ARE RECOVERED FROM THE TREATMENT PROCESS Biosolids • OCSD produces over 500 million pounds of biosolids a year,which are recycled to agricultural land or used to produce compost materials used in nurseries and landscaping.These highly treated biosolids are beneficial as soil amendments and are an environmentally friendly alternative to fossil-fuel intensive fertilizers. Water Reuse • The GWRS's high-quality water replenishes the groundwater basin. It is locally controlled and drought resilient,and costs less than imported water. It produces 100 million gallons per day , of highly purified water, enough to meet the needs of 850,000 people. Energy • Methane gas captured in the anaerobic digesters is used to fuel engine-generators that produce electricity and heat.This energy source powers over 60 percent of OCSD's energy needs,which saved rate payers$4.8 million dollars in energy costs in 2015-2016. In addition, this non-fossil fuel energy source offsets fossil fuel consumption and reduces OCSD's carbon footprint. 0 ........................................................................................................................................................................................................... STEP STEP © PRIMARY ADVANCED TREATMENT TREATMENT © —GROUNDWATER (PHYSICAL) REPLENISHMENT SYSTEM The wastewater passes into large (ORANGE COUNTY WATER DISTRICT) settling tanks where the remaining solids sink to the bottom of the tank, 010 The treated water flows to the Groundwater removing 80 percent of solids in the Replenishment System,where it undergoes a water.The resulting sludge and scum state-of-the-art purification process consisting STEP are sent to the plants digesters to of microfiltration, reverse osmosis,and ultraviolet undergo anaerobic digestion. light with hydrogen peroxide for disinfection 0 SECONDARY TREATMENT (BIOLOGICAL) 4 f The partially treated wastewater is sent to aeration basins or trickling filters for further treatment. Microorganisms feed on the remaining organic materials in the wastewater.After the microorganisms (secondary sludge) are removed,the treated water is then sent to the Groundwater Replenishment System or released into the Pacific Ocean. RESOURCE RECOVERY POINT:The RESOURCEPRECOVERYnaerobic digestion is the process Groundwater Replenishment System in which microorganisms break down and convert biodegradable generates 100 million gallons of nearly distilled materials into useful binges and biosolids.Anaerobic digestion is quality water per day.This reliable water not only cost-efficient and generative of reusable resources,but supply it used to prevent seawater intrusion can also greatly reduce the amount of organic matter that would and replenish Orange County's aquifer. otherwise need to be hauled off site for reuse. 3 ShapeDrivers that the 2017 Facilities Master Plan OUR RESPONSE TO THE CHALLENGES AND OPPORTUNITIES WE FACE IN THE NEXT 20 YEARS GWRS Final Expansion Every day,OCSD provides up to 130 million gallons of treated wastewater to GWRS,which produces approximately 100 million gallons of purified water for residents of Orange County. In November 2016,OCWD and OCSD committed to the GWRS Final Expansion,a project that will further increase the GWRS treatment capacity to 130 million gallons per day,enough water to meet the needs of one million people.This requires OCSD to provide approximately 40 million more gallons of secondary-treated wastewater to OCWD per day.This 71& GW Rincrease will be accommodated through changes and additions to infrastructure that will allow treated effluent from Plant No.2 in Huntington Beach to be "°""°"""°""`""""'""""" delivered to the GWRS treatment system in Fountain Valley. In addition,OCSD Tastes like water.. has committed to the collection and treatment of up to 10 VIGO of dry weather becouse if is water' urban runoff to help protect local beaches from dry weather urban runoff contamination.This additional water source will add to the amount of water available for GWRS recovery and reuse. \ J s i r . =r Aging Infrastructure OCSD's capital improvement program has been evolving OCSD PROJECTED WASTEWATER FLOW over time. In the beginning,the program focused on sea creating the initial infrastructure of the collections and 300 2009 Pror"fton treatment system.The focus then shifted to expansion Ac4+e of capacity and over the past ten years,OCSD's capital �, 250 lFkw% improvement program has centered on improving treatment g 2017 wiper �0,;:a quality.The 2017 Facilities Master Plan wastewater flow a 200 projections show that capacity is no longer a driving 2017 Lower Bound 150 factor to our capital improvement program. Instead, OCSD's biggest challenge is aging infrastructure and 100 _ obsolescence of assets. In fact,the largest driver for the "a future projects identified by the 2017 Facilities Master 50 _ - �_._ Plan is the replacement and rehabilitation of OCSO's aging 0 ii''ltli _ infrastructure and maximizing resource recovery. 1990 1995 20M 2005 M10 2015 2010 M25 21000 201 Biosolids Master Plan Year Due to aging structures and seismic risks,the digestion facilities at Plant No. 2 in Huntington Beach will need to be replaced.OCSD recently completed a Biosolids Master Plan to evaluate the biosolids markets and technology options.The plan keeps in mind OCSD's goal to accommodate Orange County's food waste diversion needs. It will serve as the road map for sustainable and cost-effective biosolids management options over a 20-year period and will diversify our biosolids portfolio. The result is a higher quality biosolids product that can be beneficially reused as fertilizer for farmland or as compost for agriculture,nurseries,and home gardens. Co-Digestion of Food Waste The State of California mandates that local jurisdictions reduce the amount of 'CD organic material entering landfills by 75 percent by 2025.With the anaerobic y O digestion facilities already in place,OCSD can serve a vital role in helping the state meet its goal by receiving food waste to be co-digested with its solids to increase r� biogas production and energy. OCSD has planned to construct an interim and r permanent food waste receiving facilities.The receiving facilities are planned to be located at Plant No. 2 in Huntington Beach. Co-digestion at OCSD is an important step towards energy self-sufficiency from increased gas production,which meets C ,� OCSD's energy policy goals. MPOS LONG-TERM PLANNING NEEDS Beyond the 20-year planning addressed in this 2017 Facilities Master Plan,additional existing facilities will eventually require replacement.The existing treatment plant sites are or will be nearly fully utilized and future replacement of major processes while maintaining the services they provide will be challenging. Many non- process facilities can potentially be located at newly acquired off-site properties,freeing up treatment plant land for long-term process replacement.This,along with other long-term options for land use planning,will need to be evaluated in greater depth in future studies. IMPROVEMENTS TO MAINTAIN THE INTEGRITY OF OUR REGIONAL TRUNK SEWER SYSTEM AND PUMP STATIONS OCSO's 479-square-mile service area is divided into 11 sewer sheds.The trunk sewer system consists of approximately 396 miles of gravity pipelines,and force mains,and numerous access and flow diversion structures.The majority of the system operates by gravity flow; however, 15 off-site pump stations are necessary to lift the wastewater at various locations throughout the service area. The majority of the pipelines were originally constructed between 1950 and 1979, making them up to 67-years-old,and pump stations up to 60-years-old. OCSD COLLECTION SYSTEM ------------------------ � I —Sewers —Sewers Requiring Rehabilitation r Pump Stations 1r Pump Stations Requiring Rehabilitation Sewers and Pump Stations that are included in the 2017 Facilities Master Plan. To evaluate the condition of the collection1 to identify projects, planning process 1'd an end of life assessment.This assessment • particular asset,facility,or process will not 1' .I ' to perform ded purpose.The assessment for the collectioninvolved evaluationan of OCSD's closed circuit televisioninspection data.OCSD currently has an ongoing program t1 inspectgravity sewers with CCTV every seven years. For this study, 1 of the collectionpipelines were inspecteda d reviewed for defects" 1 1 indicateor repairneeds. d of Me assessment1 ' pump stations was conducted through physical site visits1y a multi-discipline inspectionevaluated the physical condition of each facility. n.. 1h. M COLLECTION SYSTEM Based on the end of life assessment,the following 37 projects were PROJECT COST BREAKDOWN included in this Master Plan for the collection system: PUMP 12 projects for the pump stations: STATIONS • Most of these projects focus on mechanical and electrical PROJECTS rehabilitation by way of replacing aging and deteriorated equipment. 25 projects for the sewer pipelines: • Approximately AO miles of pipe rehabilitation were identified.Most 1 of these projects focus on sewer rehabilitation with a lesser amount of sewers identified for replacement. ^ r By completing these projects,the quality and integrity of the collection SEWER J h� system should remain intact for the next 20 years. PI PES L J Only condition driven projects were identified for this Master Mn.A newt PROJECTS study,scheduled to be completed in 2018 will identify capacity driven projects,if any,which will then be incorporated into the 20-year CIP. rl � • REPLACING AGING TREATMENT FACILITIES AND ADOPTING NEWER TECHNOLOGIES Assessments were conducted at Reclamation Plant No. 1 and Treatment Plant No. 2 to determine asset condition and identify necessary improvement or replacement projects. More detailed assessments for 14 older facilities were conducted by physical site visits -- I with a multi-discipline inspection team.The inspection team reviewed when the facilities were last rehabilitated and what the rehabilitation entailed,and then performed a - -,_- - condition assessment. .................................................................................... � I 40 �+ . y t9 PURL". The condition of existing facilities was evaluated through inspection by a multi-disciplined engineering team 9 7 r 2 " ° RLO r � ! x,osuu,,,o x Plant No. 1 will undergo replacement of Plant No.2 will include new solids digestion facilities Primary Clarifiers 3,4,and 5 to produce higher quality biosolids TREATMENT PLANTS In many cases the assessment revealed that the structural facilities are in PROJECT COST BREAKDOWN sound condition, but the mechanical systems must be either rehabilitated or replaced due to age,obsolescence,and deterioration. PLANT 1 A total of 47 projects were identified for the two treatment plants: N0. I PROJECTS 16 projects for Plant No. 1: • Most of these projects focus on replacing or rehabilitating r ' • components used in all stages of the treatment process—primary, r secondary,solids treatment,and power generation. !� !� 23 projects for Plant No. 2: PLANT • Most of these projects focus on two major drivers: No. 223 1 j rehabilitation of components in all stages of the treatment PROJECTS process and power generation,and 2) implementation of the recommendations higher the utility ids Master Plan to address seismic risks,to produce higher quality biosolids and accept food waste. � Some of these projects will incorporate upgraded equipment and r parts into the plant as well as new technologies. S joint plant projects: Q • Most of these projects focus on plant-wide replacement and JOINT o rehabilitation projects at both facilities such as tunnels,piping and PROJECTS ocean outfall. rl , • • ►.l is it ._. M 17 Our Capital Improvement • • WHAT OUR PROJECTS WILL COST PROJECTED ANNUAL CIP OUTLAY The projects identified in the master planning $ Wlow= — process were incorporated into the existing 10-yearrotal: 20-yearrotal: Capital Improvement Program (CIP).This program $350,0wuao $2,451,000,000 $5,023,000,000 identifies an implementation schedule for each project and develops annual expenditures $zro,urouW required over the 20-year planning period to implement the projects.The projects are szsa,ump. scheduled based on a prioritization process that takes into account facility condition, evaluation $2w.owow of remaining useful life, criticality of the facility, avoidance of implementation conflicts,and cash sim,nmu. flow and resource constraints. $iro.oro.aao The Master Plan provides a listing of all newly identified projects,including justification for the $:o,roo,00a project, project description,cost estimate,and recommendation for implementation timing.The $. 20-year CIP which includes existing projects authorized by the Board of Directors and projects identified in this Master Plan totals$5 Billion, and averages approximately$250 Million per year. H FUTURE PROJECTS IDENTIFIED THROUGH OW WILL THE PROJECTS BE PAID FOR MASTER PLANNING PROCESS Sewer system user fees and connection fees are collected to pay down prior project debt,fund capital improvements,and pay for PUMP o system operation and maintenance costs. User fees are charged based STATIONS 8 /o on the quantityand strength of wastewater discharged b various user SEWER o Jo.1 6% categoes.These user fees are collected on the County-wide annual Pipes 11 /° property tax bill.Connection fees are charged when new customers are added to the system to recover the cost for capacity to serve new users. JOINT OCSD currently carries a balance of approximately one billion dollars PLANT 12 o of debt for the previous projects including the construction that was required to achieve full secondary treatment.This debt is paid down over time, similar to a home mortgage.The CIP identified in this Master Plan will not require OCSD to take on additional debt. Projects have been planned for implementation based on projected availability of funds collected from the user and connection fees. WILL OUR RATES CHANGE PNo 2T 430% The cost of wastewater treatment is subject to inflation and experiences cost increases with time,similar to other goods and services, mainly due to increased cost of electricity,treatment chemicals,labor,and raw materials for new construction. Most utilities experience a nominal increase every few years that reflects these increased costs. User rates and connection fees already include an amount for expected future capital expenditures. It is anticipated that customers will not experience a rate increase that is substantially different than the normal annual inflationary rate change. 1 e� What's Next? As projects identified in this Master Plan approach the time for implementation,they will be brought to the OCSD Board of Directors for approval as part of the annual budget update process.The management of these projects is a large endeavor that will require the participation and support from staff throughout the agency. OCSD is committed to providing reliable,high-quality wastewater collection,treatment and beneficial reuse to Orange County's residents,while implementing sustainable, cost-effective practices that benefit our community and the environment. OCSD's asset management program allows us to operate and maintain our assets to deliver the required level of service in the most cost-effective manner. Efforts from all departments are well planned, clearly communicated and closely coordinated. These asset management efforts include operations,planned maintenance, corrective maintenance, condition assessments and capital improvements projects such as those identified in this Master Plan. Finally,we must continually plan for the future by routinely evaluating our facilities' conditions and capabilities and measuring them against future demands and regulatory requirements.We will update this Master Plan regularly to ensure OCSD continues to;VON provide a reliable and necessary service to our rate payers well into the future. i OPERATIONS COMMITTEE Meeting Date To ad.of Dir. 17Jhfi/17 -- AGENDA REPORT em Number tem Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: ORANGE COUNTY SANITATION DISTRICT RATE PROGRAM GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND Staff will provide an overview of the Orange County Sanitation District's (Sanitation District) Rate Program. The majority of the Sanitation District's revenue comes from fees governed by an established rate structure. Fiscal year 2017-18 is the final year of the most recent five-year Board approved rate schedule approved in 2013. Staff has started the process of reviewing these rates in preparation of presentations to the Committees, and Board approval of a new rate structure. RELEVANT STANDARDS • Protection of Orange County Sanitation District assets • Ensure the public's money is wisely spent ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: N/A Page 1 of 1 OPERATIONS COMMITTEE Meeting Date To ad.of Dir. 12 6,17 — AGENDA REPORT IWm Number Item Number z - Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE REALIGNMENT PROGRAM, PROJECT NO. P1-128 GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND In June 2015, the Orange County Sanitation District (Sanitation District) Board of Directors approved the Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128. The Sanitation District and Orange County Transit Authority (OCTA) were also working collaboratively to create a new entrance to the 1-405, which would have realigned the Plant No. 1 entrance. OCTA has since notified the Sanitation District that its property will not be impacted. Also, over the last 18 months, the Sanitation District's master planning efforts identified a long-term need for more process and construction lay down area. The Sanitation District has been acquiring property to allow building in the area between Ellis Avenue and the 1-405 Freeway and between the Euclid Avenue off-ramp and Ward Street. Locating the new administrative building in this area would save space on the plant site needed for future process facilities. Approximately five acres of land would be needed. In the second half of 2016, staff worked at the Board of Directors direction to acquire property across Ellis Avenue. As a result, the Sanitation District acquired a 2.14-acre property on the north side of Ellis between Bandilier Circle and Pacific Street. In July 2017, the Board of Directors authorized staff to initiate negotiations to acquire three adjacent parcels to provide the required five acres for the project. Staff intends to present an update on the status of Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128, as the result of these land acquisitions, and the new approach OCTA is taking on the 1-405 entrance. RELEVANT STANDARDS • Maintain collaborative and cooperative relationships with neighboring agencies • Ensure that assetstfacilities blend in with the surrounding community • Provide a safe and collegial workplace Page 1 of 2 CEQA CEQA work was awarded to LSA Associates, Inc. in June 2016. An Initial Study has been performed and it has been determined an Environmental Impact Report (EIR) is required. The expected completion date of the EIR is February 6, 2019. FINANCIAL CONSIDERATIONS This item is informational and does not require any commitment of funds. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A TG:dm:gc Page 2 of 2 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARS California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CIP Capital Improvement Program CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA US Environmental Protection Agency FOG Fats, Oils, and Grease gpd gallons per day GWRS Groundwater Replenishment System ICS Incident Command System IERP Integrated Emergency Response Plan LOS Level Of Service MGD Million Gallons Per Day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O & M Operations & Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District OOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant/Construction Services Agreement PDSA Professional Design Services Agreement POTW Publicly Owned Treatment Works ppm parts per million PSA Professional Services Agreement RFP Request For Proposal RWQCB Regional Water Quality Control Board Glossary of Terms and Abbreviations SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Interceptor SARWQCB Santa Ana Regional Water Quality Control Board SAW PA Santa Ana Watershed Project Authority SCADA Supervisory Control And Data Acquisition SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SRF Clean Water State Revolving Fund SSMP Sewer System Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation W ERF Water Environment & Reuse Foundation WIFIA Water Infrastructure Finance and Innovation Act WIIN Water Infrastructure Improvements for the Nation Act W RDA Water Resources Development Act 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. Glossary of Terms and Abbreviations 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 (DIT) — 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) — A joint 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. Levels 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. Glossary of Terms and Abbreviations 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.