HomeMy WebLinkAbout04 - Oil Well Repair ServicesCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 4
November 27, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Utilities Department
Steve Myrter, Utilities Director
718 -3411 or smyrter (a)city.newport- beach.ca.us
SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH OIL WELL SERVICE
COMPANY FOR OIL WELL REPAIR SERVICES
RECOMMENDATION:
Approve Professional Services Agreement with Oil Well Service Company for on -call
repair services for oil well pumping units and authorize the Mayor and City Clerk to
execute the Agreement.
DISCUSSION:
Background:
On -call agreements allow staff to retain specialized services that are regularly required
for various repairs of the City's oil wells.
Oil Well Service Company is one of several southern California companies that provide
oil rigging units for repair of oil and gas casing, tubing, sucker rods and down hole oil
production pumps. Oil Well Service Company has provided oil rigs and repair services
for the City's oil wells for the last 23 years. Oil Well Service's background includes 67
years experience in oil production service.
Environmental Review:
This action requires no environmental review, as it is not a project pursuant to CEQA.
Funding Availability:
Funding is available in Maintenance and Repair 5400 -8160.
Oil Well Repair Services
— Approval Professional Services Agreements
November 27, 2007
Page 2
Expenditures more than $30,000 for an individual repair project will require a separate
City Council action in accordance with Policy F -14.
Prepared by:
CIA*
Cindy As le , Administrative Manager
Submitted by:
Steve Myrter, Utilitie& Director
Attachments: Agreement with Oil Well Service Company
PROFESSIONAL SERVICES AGREEMENT WITH
OIL WELL SERVICE COMPANY FOR ON -CALL
OIL WELL REPAIR SERVICES
THIS AGREEMENT is made and entered into as of this 27th day of November,
2007, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation
( "City "), and OIL WELL SERVICE COMPANY, a California Corporation whose address
is 1241 E. Burnett St., Signal Hill, California 90755 ( "Contractor"), and is made with
reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now
being conducted under the statutes of the State of California and the Charter of
City.
B. City has a need for on -call assistance for oil well repair services.
C. City desires to engage Contractor to perform on -call repair of oil and gas casing,
tubing, sucker rods and down hole oil production pumps at the City's Oil Fields
on an as need basis ("Project").
D. Contractor possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
E. The principal member of Contractor for purposes of Project, shall be Jack Frost.
F. City has solicited and received a proposal from Contractor, has reviewed the
previous experience and evaluated the expertise of Contractor, and desires to
retain Contractor to render professional services under the terms and conditions
set forth in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
Parties as follows:
1. TERM
The term of this Agreement shall commence on the above written date, and shall
terminate on the 9th day of April, 2007, unless terminated earlier as set forth
herein.
2. SERVICES TO BE PERFORMED
Contractor shall provide "On -Call" oil well repair services as described in the
Statement of Qualifications attached as Exhibit "A." Upon verbal or written
request from the Project Administrator, Contractor shall provide a letter proposal
for services requested by the City (hereinafter referred to as the "Letter
Proposal'). The Letter Proposal shall include the following:
(a) A detailed description of the services to be provided;
(b) The position of each person to be assigned to perform the services,
and the name of the individuals to be assigned, if available;
(c) The estimated number of hours and cost to complete the services;
(d) The time needed to finish the specific project.
No services shall be provided until the Project Administrator has provided written
acceptance of the Letter Proposal. Once authorized to proceed, Contractor shall
diligently perform the duties in the approved Letter Proposal.
3. TIME OF PERFORMANCE
Time is of the essence in the performance of services under this Agreement and
the services shall be performed to completion in a diligent and timely manner.
The failure by Contractor to perform the services in a diligent and timely manner
may result in termination of this Agreement by City.
Notwithstanding the foregoing, Contractor shall not be responsible for delays due
to causes beyond Contractor's reasonable control. However, in the case of any
such delay in the services to be provided for the Project, each party hereby
agrees to provide notice to the other party so that all delays can be addressed.
3.1 Contractor shall submit all requests for extensions of time for performance
in writing to the Project Administrator not later than ten (10) calendar days
after the start of the condition that purportedly causes a delay. The
Project Administrator shall review all such requests and may grant
reasonable time extensions for unforeseeable delays that are beyond
Contractors control.
3.2 For all time periods not specifically set forth herein, Contractor shall
respond in the most expedient and appropriate manner under the
circumstances, by telephone, fax, hand - delivery or mail.
4. COMPENSATION TO CONTRACTOR
City shall pay Contractor for the services on
basis, in accordance with the provisions of
Billing Rates attached hereto as Exhibit .
reference.
a time and expense not -to -exceed
this Section and the Schedule of
"B" and incorporated herein by
No rate changes shall be made during the term of this Agreement without the prior
written approval of the City. Contractors compensation for services performed in
accordance with this Agreement, including all reimbursable items and
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subconsultant fees, shall not exceed the fees identified in the Letter Proposal, as
approved by the Project Administrator. Any Letter Proposal .that sets forth fees in
excess of Thirty Thousand Dollars and No Cents ($30,000.00) shall require a
separate Professional Service Agreement approved by per Council Policy F -14.
4.1 Contractor shall submit monthly invoices to City describing the work
performed the preceding month. Contractor's bills shall include the name
of the person and /or classification of employee who performed the work, a
brief description of the services performed and /or the specific task in the
letter proposal to which it relates, the date the services were performed,
the number of hours spent on all work billed on an hourly basis, and a
description of any reimbursable expenditures. City shall pay Contractor
no later than thirty (30) days after approval of the monthly invoice by City
staff.
4.2 City shall reimburse Contractor only for those costs or expenses
specifically approved in the Letter Proposal. Unless otherwise approved,
such costs shall be limited and include nothing more than the following
costs incurred by Contractor.
A. The actual costs of subconsultants for performance of any of the
services that Contractor agrees to render pursuant to this
Agreement and the Letter Proposal, which have been approved in
advance by City and awarded in accordance with this Agreement.
B. Approved reproduction charges.
C. Actual costs and /or other costs and /or payments specifically
authorized in advance in writing and incurred by Contractor in the
performance of this Agreement.
4.3 Contractor shall not receive any compensation for Extra Work without the
prior written, authorization of City. As used herein, "Extra Work' means
any work that is determined by City to be necessary for the proper
completion of the Project, but which is not included within the Letter
Proposal and which the parties did not reasonably anticipate would be
necessary. Compensation for any authorized Extra Work shall be paid in
accordance with the Schedule of Billing Rates set forth in Exhibit B.
5. PROJECT MANAGER
Contractor shall designate a Project Manager, who shall coordinate all phases of
the Project. This Project Manager shall be available to City at all reasonable
times during the Agreement term. Contractor has designated Jack Frost to be its
Project Manager. Contractor shall not remove or reassign the Project Manager
or any personnel listed in Exhibit A or assign any new or replacement personnel
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to the Project without the prior written consent of City. City's approval shall not
be unreasonably withheld with respect to the removal or assignment of non -key
personnel.
Contractor, at the sole discretion of City, shall remove from the Project any of its
personnel assigned to the performance of services upon written request of City.
Contractor warrants that it will continuously furnish the necessary personnel to
complete the Project on a timely basis as contemplated by this Agreement.
6. ADMINISTRATION
This Agreement will be administered by the Public Works Department. Steve
Myrter, Department Director shall be the Project Administrator and shall have
the authority to act for City under this Agreement. The Project Administrator or
his/her authorized representative shall represent City in all matters pertaining to
the services to be rendered pursuant to this Agreement.
7. CITY'S RESPONSIBILITIES
In order to assist Contractor in the execution of its responsibilities under this
Agreement, City agrees to, where applicable:
A. Provide access to, and upon request of Contractor, one copy, of all
existing relevant information on file at City. City will provide all such
materials in a timely manner so as not to cause delays in Contractor's
work schedule.
B. Provide usable life of facilities criteria and information with regards to new
facilities or facilities to be rehabilitated.
8. STANDARD OF CARE
8.1 All of the services shall be performed by Contractor or under Contractor's
supervision. Contractor represents that it possesses the professional and
technical personnel required to perform the services required by this
Agreement, and that it will perform all services in a manner
commensurate with community professional standards. All services shall
be performed by qualified and experienced personnel who are not
employed by City, nor have any contractual relationship with City. By
delivery of completed work, Contractor certifies that the work conforms to
the requirements of this Agreement and all applicable federal, state and
local laws and the professional standard of care.
8.2 Contractor represents and warrants to City that it has or shall obtain all
licenses, permits, qualifications, insurance and approvals of whatsoever
nature that are legally required of Contractor to practice its profession.
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Contractor further represents and warrants to City that Contractor shall, at
its sole cost and expense, keep in effect or obtain at all times during the
term of this Agreement, any and all licenses, permits, insurance and other
approvals that are legally required of Contractor to practice its profession.
Contractor shall maintain a City of Newport Beach business license during
the term of this Agreement.
8.3 Contractor shall not be responsible for delay, nor shall Contractor be
responsible for damages or be in default or deemed to be in default by
reason of strikes, lockouts, accidents, or acts of God, or the failure of City
to fumish timely information or to approve or disapprove Contractor's work
promptly, or delay or faulty performance by City, contractors, or
governmental agencies.
9. HOLD HARMLESS
To the fullest extent permitted by law, Contractor shall indemnify, defend and
hold harmless City, its City Council, boards and commissions, officers, agents
and employees (collectively, the "Indemnified Parties ") from and against any and
all claims (including, without limitation, claims for bodily injury, death or damage
to property), demands, obligations, damages, actions, causes of action, suits,
losses, judgments, fines, penalties, liabilities, costs and expenses (including,
without limitation, attorneys fees, disbursements and court costs) of every kind
and nature whatsoever (individually, a Claim; collectively, "Claims "), which may
arise from or in any manner relate (directly or indirectly) to any work performed or
services provided under this Agreement including, without limitation, defects in
workmanship or materials or Contractor's presence or activities conducted on
the Project (including the negligent and /or willful acts, errors and /or omissions of
Contractor, its principals, officers, agents, employees, vendors, suppliers,
consultants, subcontractors, anyone employed directly or indirectly by any of
them or for whose acts they may be liable or any or all of them).
Notwithstanding the foregoing, nothing herein shall be construed to require
Contractor to indemnify the Indemnified Parties from any Claim arising from the
sole negligence or willful misconduct of the Indemnified Parties. Nothing in this
indemnity shall be construed as authorizing any award of attorney's fees in any
action on or to enforce the terms of this Agreement. This indemnity shall apply
to all claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as a limitation upon the amount of
indemnification to be provided by the Contractor.
10. INDEPENDENT CONTRACTOR
It is understood that City retains Contractor on an independent contractor basis
and Contractor is not an agent or employee of City. The manner and means of
conducting the work are under the control of Contractor, except to the extent
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11.
12.
13.
14.
they are limited by statute, rule or regulation and the expressed terms of this
Agreement. Nothing in this Agreement shall be deemed to constitute approval
for Contractor or any of Contractors employees or agents, to be the agents or
employees of City. Contractor shall have the responsibility for and control over
the means of performing the work, provided that Contractor is in compliance with
the terms of this Agreement. Anything in this Agreement that may appear to give
City the right to direct Contractor as to the details of the performance or to
exercise a measure of control over Contractor shall mean only that Contractor
shall follow the desires of City with respect to the results of the services.
COOPERATION
Contractor agrees to work closely and cooperate fully with City's designated
Project Administrator and any other agencies that may have jurisdiction or
interest in the work to be performed. City agrees to cooperate with the
Contractor on the Project.
CITY POLICY
Contractor shall discuss and review all matters relating to policy and project
direction with Citys Project Administrator in advance of all critical decision points
in order to ensure the Project proceeds in a manner consistent with City goals
and policies.
PROGRESS
Contractor is responsible for keeping the Project Administrator and /or his /her
duly authorized designee informed on a regular basis regarding the status and
progress of the work, activities performed and planned, and any meetings that
have been scheduled or are desired.
INSURANCE
Without limiting Contractor's indemnification of City, and prior to commencement
of work. Contractor shall obtain, provide and maintain at its own expense during
the term of this Agreement, a policy or policies of liability insurance of the type
and amounts described below and in a form satisfactory to City.
A. Certificates of Insurance. Contractor shall provide certificates of
insurance with original endorsements to City as evidence of the insurance
coverage required herein. Insurance certificates must be approved by
City's Risk Manager prior to commencement of performance or issuance
of any permit. Current certification of insurance shall be kept on file with
City's at all times during the term of this Agreement.
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B. Signature. A person authorized by the insurer to bind coverage on its
behalf shall sign certification of all required policies.
C. Acceptable Insurers. All insurance policies shall be issued by an
insurance company currently authorized by the Insurance Commissioner
to transact business of insurance in the State of California, with an
assigned policyholders' Rating of A (or higher) and Financial Size
Category Class VII (or larger) in accordance with the latest edition of
Best's Key Rating Guide, unless otherwise approved by the City's Risk
Manager.
D. Coverage Requirements.
1. Workers' Compensation Coverage. Contractor shall maintain
Workers' Compensation Insurance and Employer's Liability
Insurance for his or her employees in accordance with the laws of
the State of California. In addition, Contractor shall require each
subcontractor to similarly maintain Workers' Compensation
Insurance and Employer's Liability Insurance in accordance with
the laws of the State of California for all of the subcontractor's
employees. Any notice of cancellation or non - renewal of all
Workers' Compensation policies must be received by City at least
thirty (30) calendar days (10 calendar days written notice of non-
payment of premium) prior to such change. The insurer shall agree
to waive all rights of subrogation against City, its officers, agents,
employees and volunteers for losses arising from work performed
by Contractor for City.
2. General Liability Coverage. Contractor shall maintain commercial
general liability insurance in an amount not less than two million
dollars ($2,000,000) per occurrence for bodily injury, personal
injury, and property damage, including without limitation,
contractual liability. If commercial general liability insurance or
other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to the work to be performed
under this Agreement, or the general aggregate limit shall be at
least twice the required occurrence limit.
3. Automobile Liability Coverage. Contractor shall maintain
automobile insurance covering bodily injury and property damage
for all activities of the Contractor arising out of or in connection with
work to be performed under this Agreement, including coverage for
any owned, hired, non -owned or rented vehicles, in an amount not
less than one million dollars ($1,000,000) combined single limit for
each occurrence.
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4. Professional Errors and Omissions Insurance. Contractor shall
maintain professional errors and omissions insurance, which
covers the services to be performed in connection with this
Agreement in the minimum amount of one million dollars
($1,000,000).
E. Endorsements. Each general liability and automobile liability insurance
policy shall be endorsed with the following specific language:
1. The City, its elected or appointed officers, officials, employees,
agents and volunteers are to be covered as additional insureds with
respect to liability arising out of work performed by or on behalf of
the Contractor.
2. This policy shall be considered primary insurance as respects to
City, its elected or appointed officers, officials, employees, agents
and volunteers as respects to all claims, losses, or liability arising
directly or indirectly from the Contractors operations or services
provided to City. Any insurance maintained by City, including any
self - insured retention City may have, shall be considered excess
insurance only and not contributory with the insurance provided
hereunder.
3. This insurance shall act for each insured and additional insured as
though a separate policy had been written for each, except with
respect to the limits of liability of the insuring company.
4. The insurer waives all rights of subrogation against City, its elected
or appointed officers, officials, employees, agents and volunteers.
5. Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to City, its elected or appointed
officers, officials, employees, agents or volunteers.
6. The insurance provided by this policy shall not be suspended,
voided, canceled,.or reduced in coverage or in limits, by either
party except after thirty (30) calendar days (10 calendar days
written notice of non - payment of premium) written notice has been
received by City.
F. Timely Notice of Claims. Contractor shall give City prompt and timely
notice of claim made or suit instituted arising out of or resulting from
Contractors performance under this Agreement.
G. Additional Insurance. Contractor shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its own
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judgment may be necessary for its proper protection and prosecution of
the worts.
15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this Agreement, the services to be
provided under this Agreement shall not be assigned, transferred contracted or
subcontracted out without the prior written approval of City. Any of the following
shall be construed as an assignment: The sale, assignment, transfer or other
disposition of any of the issued and outstanding capital stock of Contractor, or of
the interest of any general partner or joint venturer or syndicate member or
cotenant if Contractor is a partnership or joint - venture or syndicate or cotenancy,
which shall result in changing. the control of Contractor. Control means. fifty
percent (50 %) or more of the voting power, or twenty-five percent (25%) or more
of the assets of the corporation, partnership orjoint - venture.
16. SUBCONTRACTING
The parties recognize that a substantial inducement to City for entering into this
Agreement is the professional reputation, experience and competence of
Contractor. Assignments of any or all rights, duties or obligations of the
Contractor under this Agreement will be permitted only with the express written
consent of City. Contractor shall not subcontract any portion of the work to be
performed under this Agreement without the written authorization of City.
17. OWNERSHIP OF DOCUMENTS
Each and every report, draft, map, record, plan, document and other writing
produced (hereinafter "Documents "), prepared or caused to be prepared by
Contractor, its officers, employees, agents and subcontractors, in the course of
implementing this Agreement, shall become the exclusive property of City, and
City shall have the sole right to use such materials in its discretion without further
compensation to Contractor or any other party. Contractor shall, at Contractor's
expense, provide such Documents to City upon written request.
Documents, including drawings and specifications, prepared by Contractor
pursuant to this Agreement are not intended or represented to be suitable for
reuse by City or others on any other project. Any use of completed documents
for other projects and any use of incomplete documents without speck written
authorization from Contractor will be at City's sole risk and without liability to
Contractor. Further, any and all liability arising out of changes made to
Contractor's deliverables under this Agreement by City or persons other than
Contractor is waived against Contractor and City assumes full responsibility for
such changes unless City has given Contractor prior notice and has received
from Contractor written consent for such changes.
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18. CONFIDENTIALITY
All Documents, including drafts, preliminary drawings or plans, notes and
communications that result from the services in this Agreement, shall be kept
confidential unless City authorizes the release of information.
20. RECORDS
Contractor shall keep records and invoices in connection with the work to be
performed under this Agreement. Contractor shall maintain complete and
accurate records with respect to the costs incurred under this Agreement and
any services, expenditures and disbursements charged to City, for a minimum
period of three (3) years, or for any longer period required by law, from the date
of final payment to Contractor to this Agreement. All such records shall be
clearly identifiable. Contractor shall allow a representative of City to examine,
audit and make transcripts or copies of such records during regular business
hours. Contractor shall allow inspection of all work, data, documents,
proceedings and activities related to the Agreement for a period of three (3)
years from the date of final payment under this Agreement.
21. WITHHOLDINGS
City may withhold payment of any disputed sums until satisfaction of the dispute
with respect to such payment. Such withholding shall not be deemed to
constitute a failure to pay according to the terms of this Agreement. Contractor
shall not discontinue work as a result of such withholding. Contractor shall have
an immediate right to appeal to the City Manager or his designee with respect to
such disputed sums. Contractor shall be entitled to receive interest on any
withheld sums at the rate of return that City earned on its investments during the
time period, from the date of withholding of any amounts found to have been
improperly withheld.
22. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional
inexperience of Contractor which result in expense to City .greater than what
would have resulted if there were not errors or omissions in the work
accomplished by Contractor, the additional design, construction and /or
restoration expense shall be bome by Contractor. Nothing in this paragraph is
intended to limit City s rights under any other sections of this Agreement.
23. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS
City reserves the right to employ other Contractors in connection with the Project.
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24. CONFLICTS OF INTEREST
The Contractor or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act'), which (1) requires such
persons to disclose any financial interest that may foreseeably be materially
affected by the work performed under this Agreement, and (2) prohibits such
persons from making, or participating in making, decisions that will foreseeably
financially affect such interest.
If subject to the Act, Contractor shall conform to all requirements of the Act.
Failure to do so constitutes a material breach and is grounds for termination of
this Agreement by City. Contractor shall indemnify and hold harmless City for
any and all claims for damages resulting from Contractors violation of this
Section.
25. NOTICES
All notices, demands, requests or approvals to be given under the terms of this
Agreement shall be given in writing, and conclusively shall be deemed served
when delivered personally, or on the third business day after the deposit thereof
in the United States mail, postage prepaid, first -class mail, addressed as
hereinafter provided. All notices, demands, requests or approvals from
Contractor to City shall be addressed to City at:
Steve Myrter
Utilities Department
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA, 92658 -8915
Phone: 949 -644 -3012
Fax: 949 -646 -5204
All notices, demands, requests or approvals from City to Contractor shall be
addressed to Contractor at:
Jack Frost
Oil Well Service Company
1241 E. Burnett St.
Signal Hill, CA 90755
Phone: (562) 595 -4501
Fax: (562) 424 -8026
26. TERMINATION
In the event that either party fails or refuses to perform any of the provisions of
this Agreement at. the time and in the manner required, that party shall be
deemed in default in the performance of this Agreement. If such default is not
cured within a period of two (2) calendar days, or if more than two (2) calendar
days are reasonably required to cure the default and the defaulting party fails to
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give adequate assurance of due performance within two (2) calendar days after
receipt of written notice of default, specifying the nature of such default and the
steps necessary to cure such default, the non - defaulting party may terminate the
Agreement forthwith by giving to the defaulting party written notice thereof.
Notwithstanding the above provision, City shall have the right, at its sole
discretion and without cause, of terminating this Agreement at any time by giving
seven (7) calendar days' prior written notice to Contractor. In the event of
termination under this Section, City shall pay Contractor for services satisfactorily
performed and costs incurred up to the effective date of termination for which
Contractor has not been previously paid. On the effective date of termination,
Contractor shall deliver to City all reports and other information developed or
accumulated in the performance of this Agreement, whether in draft or final form.
27. COMPLIANCE WITH ALL LAWS
Contractor shall at its own cost and expense comply with all statutes,
ordinances, regulations and requirements of all governmental entities, including
federal, state, county or municipal, whether now in force or hereinafter enacted.
In addition, all work prepared by Contractor shall conform to applicable City,
county, state and federal laws, regulations and permit requirements and be
subject to approval of the Project Administrator and City.
28. WAIVER
A waiver by either party of any breach, of any term, covenant or condition
contained herein shall not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition contained herein, whether
of the same or a different character.
29. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or
nature whatsoever between the Parties hereto, and all preliminary negotiations
and agreements of whatsoever kind or nature are merged herein. No verbal
agreement or implied covenant shall be held to vary the provisions herein.
30. CONFLICTS OR INCONSISTENCIES
In the event there are any conflicts or inconsistencies between this Agreement
and the Scope of Services or any other attachments attached hereto, the terms
of this Agreement shall govern.
31. AMENDMENTS
This Agreement may be modified or amended only by a written document
executed by both Contractor and City and approved as to form by the City
Attorney.
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32. 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.
33. INTERPRETATION
The terms of this Agreement shall be construed in accordance with the meaning
of the language used and shall not be construed for or against either party by
reason of the authorship of the Agreement or any other rule of construction,
which might otherwise apply.
34. CONTROLLING LAW AND VENUE
The laws of the State of California shall govern this Agreement and all matters
relating to it and any action brought relating to this Agreement shall be
adjudicated in a court of competent jurisdiction in the County of Orange.
35. EQUAL OPPORTUNITY EMPLOYMENT
Contractor represents that it is an equal opportunity employer and it shall not
discriminate against any subcontractor, employee or applicant for employment
because of race, religion, color, national origin, handicap, ancestry, sex or age.
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on
the day and year first written above.
APPROVED AS TO FORM:
Aaron C. Harp,
Assistant City Attorney
for the City of Newport Beach
ATTEST:
LaVonne Harkless,
City Clerk
CITY OF NEWPORT BEACH
A Municipal Corporation
By:
Steve Rosansky
Mayor
for the City of Newport Beach
CONSULTANT:
By:
(Corporate Officer)
Title:
Print Name:
By:
(Financial Officer)
Title:
Print Name:
Attachments: Exhibit A — Statement of Qualifications
Exhibit B — Schedule of Billing Rates
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OIL WELL SER,VI
546
LONG REACH
(562) $954501
BAKERSFIELD
(661) 746 -4809
COALINGA
(559) 935 -5060
SANTA PAULA
(805) 525 -2103
WOODLAND
(530) 662 -9384
October 9, 2007
Cindy Asher
Newport Beach
P.O. Box 1768
Newport Beach, CA 92658 -8915
Dear Cindy Asher,
EXHIBIT "A"
Co.
1241 E. BURNETT STREET • SIGNAL HILL, CALIFORNIA 90755 -3594
This is to inform you that Oil Well Service Co. has been in business since 1940 and is 100%
owned by our Employee Stock Ownership Plan. Our current office and yard address is, 1241
E. Burnett St. Signal Hill, CA 90755. We plan to hold our current prices for the next six
months. Feel free to give us a call if you have any additional questions.
Sincerel
J Frost
il Well Service
General Manager
CV
la �$C°t51ed
\ _ �i ll
bgr EXHIM in
0u -U7ELL SE
R�VICx- CO.
RELATED E DIRMENl'
TRIPLEX PUMP WITH SHAKER, TANK. AND 2 HOSES
DUPLEX PUMP WITH SHAKER, TANK AND 2 HOSES
1200.00 PER DAY
STANDBY RATE WHEN PUMPS ARE NOT USED
1050.00 PER DAY
GENERATOR
300:00 PER DAY
HYDRAULIC POWER SWIVEL
100.00 PER DAY
__.. _. -- - --
STANDBY RATE WHEN NOT USED
900.00 PER DAY
OPERATOR REQUIRED FOR ALL ABOVE EQUIPMENT WHEN NOT USED IN
300.00 PER DAY
CONJUNCTION WITH O.W.S. RIGS
90.00 PERHR
H.T. PRODUCTION SWIVEL
2"X 50'2000 PSI KELLY HOSE (EJCTRA HOSES)
I00.00 PER DAY
PORTABLE HYDRAULIC UNIT
100.00 PER HOSE
OIL WELL SERVICE CO. TRANSPORTATION
250.00 PER DAY
ELECTRONIC H2S MONITOR
100.00 PER HR.
SCOTT AIR PACK
100.00 PER DAY
ACID PACKAGE, INC. (GOGGLES, RUBBER RAIN SUIT, RUBBER GLOVES)
150.00 PER DAY
CELLAR PUMP
95.00 PER MAN
HYDRAULIC MANIFOLD
80.00 PER DAY
EXTRA CHARGE FOR CELLAR RINGS AND RIG MATS
80.00 PER DAY
WATER TRAILER
60.00 PER DAY
SUPPLIES AND RENTAL EQUIPMENT FROM OTHER SOURCES WILL HAVE
150/6 ADDED FOR PROCESSING.
SHAKERBOX
WELDER
50.00 DAY
PLASTIC
100.00 HR
100.00 ROLL
ADDITIONAL CHARGES FOR DISPOSAL OF SOLIDS
AND FLUIDS FROM MUD PUMPS
TERMS: NET 60 DAYS
IF A WAIVER OF SUBROGATION IS REgUIRED AN ADDITIONAL CHARGE OF 52.60 PER
CREW HOUR WILL BE ADDED
* FUEL SURCIARGE
FUEL WILL BE BASED ON AVERAGE BEFORE TAX COST OF 1.05 PER GALLON
EACH RIG USES 6 GALLONS PER HOUR, EACH I CENT INCREASE IN FUEL PRICE
OVER LAST YEARS RATE WILL RESULT IN A 6 CENT PER HOUR SURCHARGE
OIL WELL SERVICE WILL CALCULATE FUEL COSTS AT THE END OF EACH MONTH IN ORDER TO
DETERMINE THE NEXT MONTHS CHARGES.
TWS MAY 1ST, 2007 LIST SUPERSEDES ALL PRJS VIOUS PRICES QUOTED
U]r.L WELL SERN -1
FRODiJG"�ON EOUZFMENT
DR1 VB -IN RIGS - 90' -95', 180,00011- 212,000# CAPACITY
155.00 PER HR
SKID RIGS
RIG STANDBY RATE (WHEN SHUT -DOWNS ARE BEYOND OUR CONTROL)
I75.00 PER HR
TOOL TRUCK - WITHOUT RIG
1050.00 PER DAY
FISHING TOOLS
100.00 PER HR
DAMAGED FISHING TOOLS - CHARGED TO CUSTOMER
125.00 PER RUN
SANDLINE CHARGE:
MIIJIIKiIM
0' - 5'000'
120.00 PER DAY
OVER 5,000'
50.00 PER HR
ADDITIONAL CHARGE FOR BAILING OR SWABBING IN CORROSIVE
75.00 PER HR
ENVIRONMENT (112S ACID ETC.)
CONTRACT LABOR AND TRAVEL TIME TO AND FROM THE JOB SITE
FOUR MEN CREW
390.00 PER HR
THREE MEN CREW
320.00 PER HR
HEAD WELL PULLER
130.00 PER HR
HELPER
DOUBLE TIME SURCHARGE 3 MEN CREW
105.00 PER HR
DOUBLE TIME SURCHARGE .4 MEN CREW
135.00 PER HR
161.00 PER HR
EXTRA SUPERVISION
SUBSISTENCE AWAY PROM HOME PER MAN
1250.00 PER DAY
150.00 PER DAY
DOUBLE TIME WILL BE CHARGED FOR CREWS WORKING ON THE FOLLOWING
LEGAL HOLIDAYS:
MEMORIAL, DAY, JULY 4TH, LABOR DAY, THANKSGIVING, CHRISTMAS AND
NEW YEARS DAY
MINIMUM DAY, FOUR HOURS RIG AND CREW