HomeMy WebLinkAbout11 - Newport Terrace Landfill Contract & Budget AmendmentCITY OF
NEWPORT BEACH
City Council Staff Report Agenda Item No. 11
April 10, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Municipal Operations Department
Mark Harmon, Municipal Operations Department Director
949 644 -3055, mharmon @newportbeachca.gov
PREPARED BY: Kathryne Cho
APPROVED:
1
TITLE: Newport Terrace Landfill Gas Collection and Control System —
Award of Contract and Budget Amendment
ABSTRACT:
Award of contract to GC Environmental, Inc. (GCE) for perform operation, maintenance
and monitoring (OM &M) services on the Newport Terrace Landfill Gas Control System
(System) and budget amendment to fund the remaining OM &M services for Fiscal Year
2011 -2012 (FYI 1-12).
RECOMMENDATION:
Approve an annual contract for $88,080.00 with (GCE) for the OM &M services of
the (System) and authorize the City Manager and City Clerk to execute the
Contract on behalf of the City.
2. Approve a Budget Amendment transferring a total of $21,180.00 from
Environmental Liability unappropriated fund balance, 292 -3605, to Environmental
Liability, Maintenance and Repair, 3155 -8030, to fund the remaining OM &M
services, possible carbon /sulfa -treat change -outs and emergency repair costs for
FY11 -12. Budget Amendment No. BA12 -031
FUNDING REQUIREMENTS:
The Budget Amendment records and appropriates $21,180.00 in increased expenditure
appropriations from Environmental Liability unappropriated fund balance.
A breakdown of the budget amendment is as follows:
Newport Terrace Landfill Gas Collection and Control System — Award of Contract and
Budget Amendment
April 10, 2012
Page 2
Purpose
Vendor
Account
Account
Amount
Description
Number
Routine OM &M
GCE
Environmental
$15,530.00
Routine Testing &
GCE
$2,560.00
Lab Analyses
Liability,
Carbon /Sulfa -treat
GCE
Maintenance and
3155 -8030
$13,250.00
Change-Out
Repair
Emergency
GCE
$7,000.00
Repairs T &M
FY 11 -12 Estimated Remaining Cost
$38,340.00
Available Fund Balance
$17,160.00
FYI 1-12 Budget Amendment
$21,180.00
BACKGROUND:
The Newport Terrace residential community is located at the northeasterly corner of 19th
Street and Balboa Boulevard along the westerly boundary of Costa Mesa. The property
was acquired by the City of Newport Beach and used as a solid waste disposal site
(landfill) in the 1950s and early 1960s. It was sold to a private company in the early
1970s and developed with residential condominium units along both sides of the landfill
area. A gas collection system was installed as part of the residential project's
construction and the homeowner's community association (Newport Condominium
Association, or NCA) was responsible for the system's operation and maintenance.
By October 2004, that responsibility evolved into litigation between the NCA and the
City which culminated in a Settlement and License Agreement in November 2006. The
Agreement established that the City was responsible for: (1) the design and
construction of an up- graded System, and (2) the ongoing OM &M of the System after
completion of construction. The Agreement also provided that the construction costs
and OM &M costs are to be shared equally between the City and the NCA.
The firm of SCS was hired by the City to prepare plans and specifications for
construction of the System, as well as to provide support during the bidding and
construction phases. Construction of the System was performed by Innovative
Construction Solutions (ICS) under Contract No. 3651. Construction work began in
September 2007 and was completed in May 2008, with formal acceptance by the City
Council on May 27, 2008.
On June 9, 2009, Council approved an award of contract to GCE. Since that date, GCE
has provided OM &M services for the System. Due to the expiration of GCE's contract,
Newport Terrace Landfill Gas Collection and Control System — Award of Contract and
Budget Amendment
April 10, 2012
Page 3
staff was advised to re -bid the contract and now another award of contract is
recommended.
DISCUSSION:
Five firms attended a mandatory on -site pre - proposal meeting on December 8, 2011
and submitted complete proposals on January 4, 2012. The proposals were ranked
based on a two -step evaluation process. The first step involved the review of proposals
with scores based on the following: 1.) Qualifications of the firm and the proposed
personnel; 2.) Operational experience of the proposing firm; 3.) Operational
methodology of LFG system maintenance and operation; and 4.) Responsiveness of the
proposal. The second step of the evaluation process involved a ratio of costs analysis
performed on all proposals. In the end, GCE was rated as the highest qualified firm for
this project based on receiving the highest rated proposal and having the lowest
proposed cost. A summary of the proposal evaluation process may be found in
Attachment B.
A Notice of Intent to Award was mailed to all firms on February 11, 2012. On March 1,
2012, GCE met with City and NCA to discuss contract procedures and basis of cost.
GCE evaluated the cost for in -house Source Testing which resulted in a reduction of
$1,000.00 from the specific line item cost.
With the concurrence of the NCA, Staff recommends award of the OM &M service
contract to GCE for a period of five (5) years with an annual budget of $88,080.00. A
breakdown of the annual budget is as follows:
Purpose
Vendor
Account
Account
Amount
Description
Number
Routine OM &M
GCE
Environmental
$37,300.00
Routine Testing &
GCE
$15,680.00
Lab Analyses
Liability,
Carbon /Sulfa -treat
GCE
Maintenance and
3155 -8030
$15,100.00
Change-Out
Repair
Emergency
GCE
$20,000.00
Rep airs (T &M)
OM &M Annual Budget
$88,080.00
Under the terms of the Settlement and License Agreement, the NCA is obligated to
reimburse the City for 50% of the actual costs incurred. Reimbursement will be
accomplished by submittal of a City invoice which is expected to be done on a monthly
basis.
Newport Terrace Landfill Gas Collection and Control System —Award of Contract and
Budget Amendment
April 10, 2012
Page 4
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Mark Harmon �
Municipal Operations Department Director
Attachments: A. Project Site Location
B. Request for Proposal Memo
(Proposal Packets Available Upon Request)
C. GC Environmental Inc. Contract
(Complete OM &M Manual Available Upon Request)
Newport Terrace Landfill
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Attachment A
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Attachment B
CITY OF NEWPORT BEACH
FINANCE DEPARTMENT
Accounting • Finance • OMB • Revenue
March 28, 2012
TO: Mark Harmon, Municipal Operations Director
FROM: Anthony Nguyen, Senior Buyer
SUBJECT: Newport Terrace Landfill Gas System Operation and Maintenance
On Thursday, February 2 "d, 2012 the evaluation panel for the Newport Terrace Landfill Gas (LFG)
System project convened to evaluate and discuss the responses to the City's Request for Proposal
(RFP). The purpose of this memorandum is to provide you with a synopsis of the panel's ratings as
well as a summary of the RFP process thus far.
Evaluation Panel
The evaluation panel for this project consisted of the following individuals: George Murdoch,
Utilities General Manager (Municipal Operations Department), Kathryne Cho, Junior Civil Engineer
(Municipal Operations Department) and Anthony Silva, representing the Newport Terrace
Condominium Association.
Proposal Evaluation
This solicitation yielded proposals from the following firms: Environ Strategy, GC Environmental,
G.E.O. Inc., SCS Field Services and Shaw Environmental. This project entailed a two -step
evaluation process, with an optional third step. The first step involved the evaluation panel
reviewing and scoring the proposals based on the following criteria:
1. Qualifications of the firm and the proposed personnel;
2. Operational experience of the proposing firm;
3. Operational methodology of LFG system maintenance and operation; and
4. Responsiveness of the proposal.
Each of the aforementioned categories was assigned a weighted multiplier based on significance
and relevance to the project, resulting in a possible score of 100 points for each proposal. Exhibit
A is a summary of the results from the proposal evaluations:
EXHIBIT A: PROPOSAL EVALUATION RESULTS
The second step of the evaluation process involved a ratio of costs analysis performed on all of the
proposals. Because of their recurring, constant and necessary nature, three costs were isolated
for this analysis: (1) Routine Operations and Maintenance Services; (2) Laboratory Analyses; and
(3) Landfill Gas Source Testing. The lowest cost proposal was awarded 100 points and subsequent
cost proposals were awarded a percentage of points in direct relation to the percentage difference
of cost from the lowest cost proposal. Exhibit B is a summary of the results from the ratio of costs
analysis:
EXHIBIT B: RATIO OF COSTS ANALYSIS
Environ
Strategy
GC
Environmental
G.E.O., Inc.
SCS Field
Services
Shaw
Environmental
Panelist
70.00
84.67
45.00
75.00
80.33
Kathryne Cho
72
83
29
88
83
George Murdoch
75
80
40
80
72
Anthony Silva
63
91
66
57
86
TOTAL
210
254
135
225
241
AVERAGE
70.00
84.67
45.00
75.00
80.33
The second step of the evaluation process involved a ratio of costs analysis performed on all of the
proposals. Because of their recurring, constant and necessary nature, three costs were isolated
for this analysis: (1) Routine Operations and Maintenance Services; (2) Laboratory Analyses; and
(3) Landfill Gas Source Testing. The lowest cost proposal was awarded 100 points and subsequent
cost proposals were awarded a percentage of points in direct relation to the percentage difference
of cost from the lowest cost proposal. Exhibit B is a summary of the results from the ratio of costs
analysis:
EXHIBIT B: RATIO OF COSTS ANALYSIS
Evaluation Results
The scores from the first two steps were then tabulated to quantitatively rank the proposals. The
evaluation panel was advised that a third optional step, which involved interviewing the top -
qualified firms, could be initiated upon the panel's request if none of the top - qualified firms
distinguished themselves and further information or clarification was needed. Exhibit C is a
summary of the aggregate scores of all five (5) proposing firms (overall rank in parenthesis):
EXHIBIT C: AGGREGATE SCORES OF PROPOSALS
Environ
Strategy
GC
Environmental
G.E.O., Inc.
SCS Field
Services
Shaw
Environmental
Operation and
70.00
84.67
45.00
75.00
80.33
Maintenance Annual Cost
$47,275.00
$45,565.00
$64,850.00
$44,650.00
$51,495.25
Proposed
164.45(4)
182.66(l)
113.85(5)
175.00(2)
167.04(3)
Ratio of Costs
94.45
97.99
68.85
100
86.71
Evaluation Results
The scores from the first two steps were then tabulated to quantitatively rank the proposals. The
evaluation panel was advised that a third optional step, which involved interviewing the top -
qualified firms, could be initiated upon the panel's request if none of the top - qualified firms
distinguished themselves and further information or clarification was needed. Exhibit C is a
summary of the aggregate scores of all five (5) proposing firms (overall rank in parenthesis):
EXHIBIT C: AGGREGATE SCORES OF PROPOSALS
GC Environmental was rated as the highest qualified firm for this project by virtue of having the
highest rated proposal and lowest proposed cost. The panel was impressed with the experience
Environ
Strategy
GC
Environmental
G.E.O., Inc.
SCS Field
Services
Shaw
Environmental
Proposal Average Score
70.00
84.67
45.00
75.00
80.33
Ratio of Costs Score
94.45
97.99
68.85
100
86.71
Aggregate Score
164.45(4)
182.66(l)
113.85(5)
175.00(2)
167.04(3)
GC Environmental was rated as the highest qualified firm for this project by virtue of having the
highest rated proposal and lowest proposed cost. The panel was impressed with the experience
and operational knowledge demonstrated by GC Environmental in their proposal. Since there was
a significant difference between GC Environmental and the second highest qualified firm (SCS
Engineers) and there were no points of clarification needed, the panel deemed that interviews
were not necessary and recommends the City negotiate with GC Environmental toward a contract
for this project.
Attachment C
AGREEMENT FOR OPERATION AND MAINTENANCE SERVICES
WITH GC ENVIRONMENTAL, INC.
FOR NEWPORT TERRACE LANDFILL GAS CONTROL SYSTEM
THIS AGREEMENT FOR OPERATION AND MAINTENANCE SERVICES
( "Agreement") is made and entered into as of this 10°i day of April, 2012
( "Commencement Date ") by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city ( "City"), and GC ENVIRONMENTAL,
INC., a California corporation ( "Contractor"), whose principal place of business is 1230
N. Jefferson Street, Suite J, Anaheim, California 92807 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 requires operation and maintenance ( "O &M ") service related to the Newport
Terrace Landfill Gas Control System ("System "), as described and depicted in
the Operation and Maintenance Manual, dated March 13, 2009 and revised by
the City November 8, 2011, • attached hereto as Exhibit "A" and incorporated
herein by this reference.
C. City desires to engage Contractor to perform the O &M for the System, as
described in Exhibits "A" and "B ", attached hereto and incorporated herein by this
reference ("Project").
D. Contractor has examined the location of all proposed work, carefully reviewed
and evaluated the specifications set forth by the City for the Project, and is
familiar with all conditions relevant to the performance of services and has
committed to perform all work required for the price specified in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
TERM
The tern of this Agreement shall be for a period of five (5) years and shall commence
on the Commencement Date, and shall terminate on March 31, 2017, unless terminated
earlier as set forth herein.
2. SCOPE OF WORK
2.1. City and Contractor acknowledge that the above Recitals are true and
correct and are hereby incorporated by reference. Contractor shall perform all the work
described in the Scope of Work attached hereto as Exhibit A and incorporated herein by
this reference ( "Services" or "Work "). As a material inducement to the City entering into
CC ENVIRONMENTAL, INC. Page 1
this Agreement, Contractor represents and warrants that Contractor is a provider of first
class work and Contractor is experienced in performing the Work contemplated herein
and, in light of such status and experience, Contractor covenants that it shall follow the
highest professional standards in performing the Work required hereunder and that all
materials will be of good quality. For purposes of this Agreement, the phrase "highest
professional standards" shall mean those standards of practice recognized by one or
more first -class firms performing similar work under similar circumstances.
2.2. Contractor shall perform everything required to be performed, and shall
provide and furnish all the labor, materials, necessary tools, expendable equipment and
all utility and transportation services necessary for the Project.
3. TIME OF PERFORMANCE
3.1. Routine O & M Services. Time is of the essence in the performance of
Services under this Agreement. Contractor shall perform the Routine O & M Services,
identified in items 1 thru 3 in Exhibit B, in accordance with the schedule included in
Exhibit A. The failure by Contractor to strictly adhere to the schedule may result in
termination of this Agreement by City.
3.1.1. Notwithstanding the foregoing, Contractor shall not be responsible
for delays due to causes beyond Consultants 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.
3.1.2. Contractor shall submit all requests for extensions of time for
performance in writing to the Project Administrator not later than two (2) 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 Consultants control.
3.1.3. For all time periods not specifically set forth herein, Consultant
shall respond in the most expedient and appropriate manner under the circumstances,
by telephone, fax, hand - delivery or mail.
3.2. On -Call Services. Upon verbal or written request from the Project
Administrator (as defined below in Section 5), Contractor shall provide a letter proposal
for on -call Services requested by the City including, the Services identified as items 4
thru 7 in Exhibit B (hereinafter referred to as the "Letter Proposal "). The Letter Proposal
shall include the following:
3.2.1. A detailed description of the Services to be provided;
3.2.2. The position of each person to be assigned to perform the
Services, and the name of the individuals to be assigned, if available;
3.2.3. The estimated number of hours and cost to complete the
Services; and
3.2.4. The time needed to finish the specific Project.
GC ENVIRONMENTAL, INC. Page 2
3.3. No on -call 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.
4. COMPENSATION
4.1. City shall pay Contractor for the Services on a time and expense not -to-
exceed basis, in accordance with the provisions of this Section and the Schedule of
Billing Rates attached hereto as Exhibit B and incorporated herein by reference. No
rate changes shall be made during the term of this Agreement without the prior written
approval of the City. Contractor's total annual compensation per calendar year from the
Commencement Date of the Agreement for Services performed in accordance with this
Agreement, including all reimbursable items, shall not exceed Eighty Eight Thousand
Eighty Dollars and 001100 ($88,080.00) without written amendment to the Agreement.
The total compensation over the full term of the Agreement shall not exceed Four
Hundred Forty Thousand Four Hundred Dollars and 001100 ($440,400.000) without
written amendment to the Agreement.
4.1.1. Routine O & M Services. As full compensation for the
performance and completion of the Routine O & M Services as identified as items 1 thru
3 on Exhibit B, City shall pay Contractor and Contractor accepts as full payment the
sum of Fifty Two Thousand Nine Hundred and Eighty Dollars and 001100
($52,980.00) per calendar year from the Commencement Date of the Agreement,
subject to the annual adjustment in proportion to changes in the Consumer Price Index
more particularly described in Section 4.2 below. Compensation for the Routine O & M
Services, identified as items 1 and 2 on Exhibit B shall be paid in twelve (12) equal
monthly installments. Services identified in item 3 of Exhibit B shall be paid on a Unit
Price rate as outlined in Exhibit B, with written approval from the City and upon
completion of work.
4.1.2. On -Call Services. For all other Services the City shall pay
Contractor on a time and expense not -to- exceed basis, in accordance with the
provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B
and Incorporated herein by reference.
4.2. Consumer Price Index. Upon the first anniversary of the Commencement
Date and upon each anniversary of the Commencement Date thereafter, the rates to be
paid by the City as set forth in Exhibit B items 1 thru 3 shall be adjusted in proportion to
changes in the Consumer Price Index, subject to the 3.0% maximum adjustment
increase set forth below. Such adjustment shall be made by multiplying the original rate
by a fraction, the numerator of which is the value of the Consumer Price Index for the
calendar month three (3) months preceding the calendar month for which such
adjustment is to be made and the denominator of which is the value of the Consumer
Price Index for the same calendar month one (1) year prior. For example, If the
adjustment is to occur effective June 1, 2011, the index to be used for the numerator Is
the index for the month of March 2011 and the index to be used for the denominator is
March 2010. The "Consumer Price Index" to be used in such calculation is the
Consumer Price Index, All Urban Consumers (All Items) for the Los Angeles Anaheim
Riverside Metropolitan Area, published by the United States Department of Labor,
GC ENVIRONMENTAL, INC. Page 3
Bureau of Labor Statistics (1982 84 = 100). If both an official index and one or more
unofficial indices are published, the official index shall be used. If said Consumer Price
Index is no longer published at the adjustment date, it shall be constructed by
conversion tables included in such new index. In no event, however, shall the amount
payable under this agreement be reduced below the Rate in effect immediately
preceding such adjustment. The maximum increase to the Rate, for any year where an
adjustment is made in proportion to changes in the Consumer Price Index, shall not
exceed 3.0% of the Rate in effect immediately preceding such adjustment.
4.3. 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 speck task from the Scope Services attached hereto
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.
4.4. City shall reimburse Contractor only for those costs or expenses
specifically approved in the Scope of Services attached hereto. Unless otherwise
approved, such costs shall be limited and include nothing more than the 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.
4.5. 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 the Project Administrator (as defined in Section 5 below) to be necessary
for the proper completion of the Project, but which is not included within the Scope of
Work and which the City and Contractor 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.
1J,I11111- 110 "AdN]11
This Agreement will be administered by the Municipal Operations Department. George
Murdoch, Utilities General Manager, or his designee shall be the Project Administrator
and shall have the authority to act for City under this Agreement. The Project
Administrator or his authorized representative shall represent City in all matters
pertaining to the Services to be rendered pursuant to this Agreement.
6. TYPE AND INSTALLATION OF MATERIALS /STANDARD OF CARE
6.1. Contractor shall use only the standard materials described in Exhibit A in
performing Services under this Agreement. Any deviation from the materials described
in Exhibit A shall not be installed unless approved in advance by the Project
Administrator.
6.2. All of the Services shall be performed by Contractor or under Contractor's
supervision. Contractor represents that it possesses the personnel required to perform
GC ENVIRONMENTAL, INC. Page 4
the Services required by this Agreement, and that it will perform all Services in a
manner commensurate with highest 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.
7. RESPONSIBILITY FOR DAMAGES OR INJURY
7.1. City and all officers, employees and representatives thereof shall not be
responsible in any manner for any loss or damage to any of the materials or other things
used or employed in performing the Project or for injury to or death of any person as a
result of Contractor's performance of the Services required hereunder; or for damage to
property from any cause arising from the performance of the Project by Contractor, or
its subcontractors, or its workers, or anyone employed by either of them.
7.2. Contractor shall be responsible for any liability imposed by law and for
injuries to or death of any person or damage to property resulting from defects,
obstructions or from any cause arising from Contractor's Work on the Project, or the
Work of any subcontractor or supplier selected by the Contractor.
7.3. To the fullest extent permitted by law, Contractor shall indemnify, defend
and hold harmless City, its City Council, boards and commissions, officers, agents,
volunteers, 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,
attorney's 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 breach of the terms and conditions of this
Agreement, 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).
7.4. 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
Consultant.
7.5. Contractor shall perform all Project Work in a manner to minimize public
Inconvenience and possible hazard, to restore other work areas to their original
condition and former usefulness as soon as possible, and to protect public and private
property. Contractor shall be liable for any private or public property damaged during
the performance of the Project Work.
GC ENVIRONMENTAL, INC. Page 5
7.6. To the extent authorized by law, as much of the money due Contractor
under and by virtue of the Agreement as shall be considered necessary by City may be
retained by it until disposition has been made of such suits or claims for damages as
aforesaid.
7.7. The rights and obligations set forth in this Section shall survive the
termination of this Agreement.
8. INDEPENDENT CONTRACTOR
City has retained Contractor as an independent contractor and neither Contractor nor its
employees are to be considered employees of the City. The manner and means of
conducting the Work are under the control of Contractor, except to the extent they are
limited by statute, rule or regulation and the express terms of this Agreement. No civil
service status or other right of employment shall accrue to Contractor or its employees.
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.
9. 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.
10. INSURANCE
10.1. Without limiting Contractor's indemnification of City, and no for to
commencement of Work. Contractor shall obtain, provide and maintain at its own
expense during the term of this Agreement, policies of insurance of the type and
amounts described below and in a form satisfactory to City. The cost of such insurance
shall be included in Contractor's bid.
10.2. Coverage and Limit Requirements.
10.2.1. Workers' Compensation. Contractor shall maintain Workers'
Compensation Insurance providing statutory benefits and employer's liability insurance
with limits of at least one million dollars ($1,000,000) each type for Contractor's
employees in accordance with the laws of the State of California, Section 3700 of the
Labor Code. 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, Section 3700 for all of the
subcontractor's employees. The insurer issuing the Workers' Compensation insurance
shall amend its policy by endorsement to waive all rights of subrogation against City, its
elected or appointed officers, agents, officials, employees and volunteers. Contractor
GC ENVIRONMENTAL, INC. Page 6
shall submit to City, along with the required certificate of insurance, a copy of such
waiver of subrogation endorsement.
10.2.2. General Liability. Contractor shall maintain commercial general
liability insurance in an amount not less than one million dollars ($1,000,000) per
occurrence, two million dollars ($2,000,000) General Aggregate and two million dollars
($2,000,000) Products and Completed Operations Aggregate for bodily injury, personal
Injury, and property damage, including without limitation, blanket contractual liability.
Coverage shall be at least as broad as that provided by Insurance Services Office form
CG 00 01. None of the policies required herein shall be in compliance with these
requirements if they include any limiting endorsement that has not been first submitted
to City and approved in writing.
10.2.3. Automobile Liability. 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 accident.
10.2.4. Builders Risk. For Agreements or Contracts with
ConstructionBuilders Risk property exposures, Contractor shall maintain Builders Risk
insurance or an installation floater as directed by City, covering damages to the Work
for "all risk" or special form causes of loss with limits equal to one hundred percent
(100 %) of the completed value of contract, with coverage to continue until final
acceptance of the Work by City. At the discretion of City, the requirement for such
coverage may include additional protection for Earthquake and/or Flood. City shall be
included as an insured on such policy, and Contractor shall provide the City with a copy
of the policy.
10.3. Other Insurance Provisions or Requirements.
10.3.1. Evidence of Insurance. Contractor shall provide certificates of
Insurance to City as evidence of the Insurance coverage required herein, along with a
waiver of subrogation endorsement for workers' compensation and an additional
insured endorsement for general liability. Insurance certificates and endorsements
must be approved by City's Risk Manager prior to commencement of performance or
issuance of any permit. Current evidence of insurance shall be kept on file with City at
all times during the term of this Agreement. All of the executed documents referenced in
this Agreement must be returned within ten (10) working days after the date on the
"Notification of Award; so that the City may review and approve all insurance and bond
documentation. City reserves the right to require complete, certified copies of all
required insurance policies, at any time.
10.3.2. General liability insurance provisions. Primary and excess or
umbrella liability policies are to contain, or be endorsed to contain, the following
provisions:
10.3.2.1. City and the Newport Condominium Association
( "NCA "), their elected or appointed officers, agents, officials, employees, and volunteers
GC ENVIRONMENTAL, INC. Page 7
are to be covered as additional insureds as respects: liability arising out of activities
performed by or on behalf of Contractor, including the Insured's general supervision of
Contractor; products and completed operations of Contractor, premises owned,
occupied or used by Contractor. The coverage shall contain no special limitations on
the scope of protection afforded to City, its elected or appointed officers, officials,
employees, agents or volunteers. Contractor shall submit to City a copy of the additional
insured endorsement along with the required certificates of insurance.
10.3.2.2. Contractor's insurance coverage shall be primary
Insurance and /or primary source of recovery as respects to City and the Newport
Condominium Association ( "NCA "), their elected or appointed officers, agents, officials,
employees and volunteers as respects to all claims, losses, or liability arising directly or
indirectly from the Contractor's operations or services provided to the City. Any
Insurance or self - insurance maintained by City and the Newport Condominium
Association ( "NCA "), their officers, officials, employees and volunteers shall be excess
of the Contractor's insurance and shall not contribute with it.
10.3.2.3. Contractors insurance shall apply separately to each
insured against whom claim is made or suit is brought, except with respect to the limits
of the insurers liability.
10.4. 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.
10.5. Notice of Cancellation. Contractor agrees to oblige its insurance broker
and insurers to provide to City with 30 days notice of cancellation (except for
nonpayment for which 10 days notice is required) or nonrenewal of coverage for each
required coverage except for builders risk insurance. The builders risk policy will
contain or be endorsed to contain a provision providing for 30 days written notice to City
of cancellation or nonrenewal, except for nonpayment for which 10 days notice is
required.
10.6. Self - Insured Retentions. Contractor agrees not to self- insure or to use any
self - insured retentions on any portion of the insurance required herein and further
agrees that it will not allow any indemnifying party to self -insure its obligations to City. If
contractors existing coverage includes a self- insured retention, the self- insured
retention must be declared to City. City may review options with the contractor, which
may include reduction or elimination of the self - insured retention, substitution of other
overage, or other solutions. Contractor agrees to be responsible for payment of any
deductibles on their policies.
10.7. Timely Notice of Claims. Contractor shall give City prompt and timely
notice of any claim made or suit instituted arising out of or resulting from Contractors
performance under this agreement.
GC ENVIRONMENTAL, INC. Page 8
10.8. Waiver. All insurance coverage maintained or procured pursuant to this
agreement shall be endorsed to waive subrogation against City, its elected or appointed
officers, agents, officials, employees and volunteers, or shall specifically allow
Contractor or others providing insurance evidence in compliance with these
requirements to waive their right of recovery prior to a loss. Contractor hereby waives Its
own right of recovery against City, and shall require similar written express waivers and
insurance clauses from each of its subcontractors.
10.9. Enforcement of Agreement Provisions. Contractor acknowledges and
agrees that any actual or alleged failure on the part of the City to inform Contractor of
non - compliance with any requirement imposes no additional obligations on the City nor
does it waive any rights hereunder.
10.10. Requirements not Limiting. Requirements of specific coverage features or
limits contained in this Section are not intended as a limitation on coverage, limits or
other requirements, or a waiver of any coverage normally provided by any insurance.
Specific reference to a given coverage feature is for purposes of clarification only as it
pertains to a given issue and is not intended by any party or insured to be all inclusive,
or to the exclusion of other coverage, or a waiver of any type.
10.11..City s Remedies. City shall have the right to order the Contractor to stop
Work under this Agreement and/or withhold any payment(s) that become due to
Contractor hereunder until Contractor demonstrates compliance with the requirements
of this article. In the alternative, City may purchase the required coverage and charge
Contractor the cost of the premiums or deduct the cost from Contractor's payments.
10.12. Coverage not Limited. All insurance coverage and limits provided by
contractor and available or applicable to this agreement are intended to apply to the full
extent of the policies. Nothing contained in this agreement or any other agreement
relating to the city or its operations limits the application of such insurance coverage.
10.13. Coverage Renewal. Contractor will renew the ooverage required here
annually as long as Contractor continues to provide any Services under this or any
other contract or agreement with the City. Contractor shall provide proof that policies of
Insurance required herein expiring during the term of this Agreement have been
renewed or replaced with other policies providing at least the same coverage. Proof that
such coverage has been ordered shall be submitted prior to expiration. A coverage
binder or letter from Contractor's insurance agent to this effect is acceptable. A
certificate of insurance and /or additional insured endorsement as required in these
specifications applicable to the renewing or new coverage must be provided to City
within five days of the expiration of the coverages.
11. SUBCONTRACTING
City and Contractor agree that subcontractors may be used to complete the Work
outlined in the Scope of Work provided the Contractor obtains City approval prior to the
subcontractor performing any work. Contractor shall be fully responsible to City for all
acts and omissions of the subcontractors. Nothing in this Agreement shall create any
contractual relationship between City and subcontractor nor shall it create any obligation
GC ENVIRONMENTAL, INC. Page 9
on the part of City to pay or to see to the payment of any monies due to any such
subcontractor other than as otherwise required by law.
12. WITHHOLDINGS
City may withhold payment to Contractor 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/her 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.
13. CONFLICTS OF INTEREST
13.1. 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 foreseeabiy be materially affected by the Work
performed under this Agreement, and (2) prohibits such persons from making, or
participating in making, decisions that will foreseeabiy financially affect such interest.
13.2. 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 immediate
termination of this Agreement by City. Contractor shall indemnify and hold harmless
City for any and all claims for damages resulting from Contractor's violation of this
Section.
14. NOTICES
14.1. All notices, demands, requests or approvals to be given under the terms of
this Agreement shall be given in writing, to City by Contractor 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:
Attn: George Murdoch
Municipal Operations Department
City of Newport Beach
3300 Newport Blvd.
PO Box 1768
Newport Beach, CA 92658
Phone: 949 - 644 -3011
Fax: 949 - 646 -1509
14.2. With a courtesy copy to:
John Van Vlear, Esq., R.E.A.
GC ENVIRONMENTAL, INC. Page 10
Voss Cook & Thai LLP
895 Dove Street, #450
Newport Beach, CA 92660
E -Mail: vv@vctlaw.com
Phone: (949) 435 -4338
Fax: (949) 435 -0226
14.3. All notices, demands, requests or approvals from City to Contractor shall
be addressed to Contractor at:
Attn: Farideh Kia
GC ENVIRONMENTAL, INC.
1230 N. Jefferson Street, Suite J
Anaheim, California 92807
Phone: 714 -632 -9969
Fax: 714 -632 -9968
15. NOTICE OF CLAIMS
15.1. Unless a shorter time is specked elsewhere in this Agreement, before
making its final request for payment under the Agreement, Contractor shall submit to
City, in writing, all claims for compensation under or arising out of this Agreement.
Contractor's acceptance of the final payment shall constitute a waiver of all claims for
compensation under or arising out of this Agreement except those previously made in
writing and identified by Contractor in writing as unsettled at the time of its final request
for payment. The Contractor and the City expressly agree that in addition to all claims
filing requirements set forth in the Agreement, the Contractor shall be required to file
any claim the Contractor may have against the City in strict conformance with the Tort
Claims Act (Govt. Code §§ 900 et seq.).
16. TERMINATION
16.1. 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 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.
16.2. Notwithstanding the above provisions, 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
materials purchased in performance of this Agreement.
GC ENVIRONMENTAL, INC. Page 11
17. STANDARD PROVISIONS
17.1. 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.
17.2. Waiver. A waiver by City of any term, covenant, or condition in the
Agreement shall not be deemed to be a waiver of any subsequent breach of the same
or any other term, covenant or condition.
17.3. Intearated 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 Contract or implied covenant shall be held to vary the provisions
herein.
17.4. Conflicts or Inconsistencies. In the event there are any conflicts or
inconsistencies between this Agreement and the Exhibits attached hereto, the terms of
this Agreement shall govem.
17.5. 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.
17.6. Effect of Contractots Execution. Execution of this Agreement by
Contractor is a representation that Contractor has visited the Project Site, has become
familiar with the local conditions under which the Work is to be performed, and has
taken into consideration these factors in submitting its Project Proposal and Scope of
Work.
17.7. Controllina 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.
17.8. Egual 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.
17.9. Interpretation. The terns 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.
17.10. 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.
GC ENVIRONMENTAL, INC. Page 12
17.11. No Attorneys Fees. In the event of any dispute or legal action arising
under this Agreement, the prevailing party shall not be entitled to attorneys fees.
17.12. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute one and the same instrument.
[SIGNATURES ON NEXT PAGE]
GC ENVIRONMENTAL, INC. Page 13
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: 3 2 l- v
By:
Aaron C. Harp
City Attorney
ATTEST:
Date:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
A California municipal corporation
Nancy Gardner
Mayor
CONTRACTOR: GC ENVIRONMENTAL,
INC., a California corporation
By:
Richard W. Prosser
President and Chief Executive Officer
Date:
By:
Farideh Kia
Vice President and Chief Financial Officer
[END OF SIGNATURES]
Attachments: Exhibit A - Operation and Maintenance Manual
Exhibit B - Schedule of Billing Rates
GC ENVIRONMENTAL, INC. Page 14
EXHIBIT A
OPERATIONS AND MAINTENANCE MANUAL (CD)
GC ENVIRONMENTAL, INC. Page A -1
EXHIBIT B
SCHEDULE OF BILLING RATES
Routine O eration & Maintenance Services
Item No.
Carbon Change -Out
Quantities
Total Price
Provide lump sum costs for replacement of carbon
($)
4.
Routine O &M Services
LS
Monitoring Pursuant to Regulations and as described in the
b) $6,750
1
OM &M Plan, Other Monitoring and Maintenance
LS
$37,300
5
Parameters, and Reporting (as specified in RFP Section 1 -F
(Annual)
$8,350
and attached O &M Manual), exclusive of laboratory
analyses.
See Rate
6.
Laboratory Analyses
T &M
a) $90
Provide unit cost for laboratory analyses of air/gas samples,
Unit price
2.
including
See Rate
7.
a) Total Gaseous Non - Methane Organics (TGNMOs) (12/yr)
T &M
b) 275
b Rule 1150.1 Toxic Air Contaminants ACs) (28/
3.
Landfill Gas Source Test
Unit Price
$6,900
On -Call Services
• The GC Environmental, Inc. will obtain three bids or proposals from qualified
subcontractors for any on -call services requested. GC Environmental, Inc. will provide
the bids to the City for final approval before any work is started.
• GC Environmental, Inc. shall use the lowest qualified bid received.
GC ENVIRONMENTAL, INC. Page B -1
Carbon Change -Out
Provide lump sum costs for replacement of carbon
a) $4,900
4.
adsorption media:
LS
a) for a single vessel
b) $6,750
b for two vessels simultaneous)
5
Sulfa -Treat Chancre -Out
Unit Price
$8,350
Provide unit cost for replacement of Sulfa -Treat media.
Non - Routine Services and Emergency Response
See Rate
6.
Provide rate schedule for T &M work, including labor and
T &M
Schedule
equipment rates.
Engineering Services
See Rate
7.
Provide rate schedule for T &M work, including labor and
T &M
Schedule
equipment rates.
GC ENVIRONMENTAL, INC. Page B -1
GC ENVIRONMENTAL, INC. - BASIS OF CHARGES
Effective January 1, 2012
1. Listed herein am "cat prices for services most frequently perfomled by GC Environmental, Inc.
Prices for other services not listed will be given upon request.
2. Invoices will be issued on a monthly basis, or upon completion of a project, whichever is sooner. The
net cash amount of this imroiee is payable within 30 days of receipt and approval of the invoice.
3. For hourly workers, time worked in excess of eight hours per day and weekend work will be charged
at 1.5 times the hourly rate.
4. Per ahem will be charged at a rate of S75 per day per person or expenses plus 1596, whichever is
greater. Per Them will be charged for all projects in excess of SO miles from the GC Environmental,
Inc. office.
S. Outsido services will include a.1S%morkununless otherwise noted.
6. We are protected by Worker's Compensation Insurance, and wit furnish certificates thereof upon
requesL We assume the risk, of damage to our own supplies and equipment. If your contract or
purchase order places greater responsibilities upon us or requires funkier imurance coverage, GCE
will, when specifically directed by you, take out additional insurance (if procurable) to protect us at
your expense, but we shall not be responsible for property damage from any cause, including fire and
explosion, beyond the amounts of coverage of our insurance.
7. All environmental samples may be retumed to clients at GC Environmental, Inn's discretion 30 days
after submission of final repast, unless prior arrangements are made.
S. Proper disposal or handling of soil boring cuttings, well development and purge waters,
decontamination solutions, and other contaminatod/potentiaiy, contaminated materials is the
responsibility of the client. GC Environmental, Inc, can provide containers for on•ste containment and
an advise the client regarding proper handling procedures.
9. Expert witness, dcposigons and testimony at two times the regular fee.
RegisteredProject Professional «»».»._...»».»».»..».........».».»..»».».».»..».»».»» . »..... ».».» » ». «». »_.. ».._ »._.. »..._.123
ProjeU Professional..____.._.____.»..«._..._«.._...____«.....»_».»... .._...._.... »..._... ».. »_.___.. »....__....._..._114
AssistantProfessional . ..... ....... ................ ............... _....»......... ...._ ................ _ ............... _ .... _.. _ ....... ...... ....... ...... ..79
Designer...«.»_».«.»..».»».»._..»«.__»...«._...__.».....»._»._»..»._»..._..».__..._...»..__._. ._.____.._.... »....... «..._..70
SeniorTechtd eldEngineer.«.....»»._.........«.......».».....»......».....» ..................... ...... » ..... _..._.._...». ............ _..62
Technician.. ............. _ . .................. « ..... _»._ .................... ...... » ...... ...... » ... ». ....... » ..... _ ... ................. ..... .» ........... ..54
Miiage__.««..___..««.».«._..»..._-._.....»...«.».»..».. .. »»..« ».....--- . ».. ». »»..» »... Standard Federal Rate f"Business
Insurance - Waiver of Subrogafion...._....._..._..._»....._..._._..»...».»....._...»... ............ ..... »_ »...... «3 %of Project Cost
copies_ ..................... _ .... ....... _ ......... _ .............. _ .................. ...... .... .» ....... _ ..... ._ . » ....................... ..... S0.10 each
IhawingCopies ......... _ ... « ............ .« ....... .« ............... ........... ........ _ ......... » ...... ........ _ ... ....... .............. _ «. S2.50 each
Commmddcation& Computer Fee at 2% of labor................. » ... .......... _ ...................... ._ ... ............................. ........ ». 2%
Equipment
GEM500 Gas Monitoring Equipment . .... .« ........................................... ...... ....... ...... _ ... .............. ............. _ SISWday
PMpasta Rauimnern. ... _ ... ......... ......_....._..._........_--- _. ......... ...... ...... ....... ....... ................... .............. .... SS5/dav
OVAEquipment .......... __. ........ _ .......... ..... ........ ............_......._..._....._......_......._...». .... ««.... »..». ».». « »...SSS/day
PIDEquipment ................. .... _» . ............. _ ...... _ .... ... ..... _ ............. « ........... ..«.» ............. . ........ I................ S125/410y
PumpTray/Sampling Equipment_ ............................... ..... » ............. .............. ». .............. .................... ....... SSWdoy
TSIEquipment ............. _ ... « ....... _ ................ ......... ......».....«......«....._..._........»......_ ...............,_.............. S100/day
WaterLevel Motor .... .... .« ............ .« .......... « ............... « .......... « ....... _ ... .............. ........ _ ... .............. ............ .... S25 /day
DmegerHandheld ...,.«..« . ............ «. ... ...................... _ ... _ ........... _ ... .............. ........ _ ............................... .... S55/day
WeatherStation ......... _ ... .............. _....._...«..........,.,.........»...,.........«.....«...«.............. .. »...........».... ».. »..._..._ S1251d3y
Ambient Air Sampling Equipment ( upgradienN downgradient) ..... .« ................. ».... ..._..._......._... «.. »..._...» Sloaday
Truck._ ........... «. ......... _ .......... ». ........................ .»...«....»......._ ................. »........»...».. ....._..._..........._..345/day
Truck& Tools ............. _ ............ .» .............. .,..,,...... .... .............. ................... ......... _ ... ........ _ .......... _.._...S75 /day
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GC ENVIRONMENTAL, INC. Page B -2