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HomeMy WebLinkAboutC-1839 - Agreement for drilling two wells regarding gas odorWoul"MA, 49 9" GUY of xwpoft, asma: by Re"Istioa lb. sm at It9:'464ft of Ady 129 1976 . now" asow" CIO c3m& N"UWMO Al set pwn" um ft Dft*rtmmt }..� s -�3 ra...,ruz' ... .. i CITY OF NEWPORT BEACH CALIFORNIA DATE July 30, 1976 TO: FINANCE DIRECTOR FROM: City Clerk SUBJECT- Contract No. 1839 Description of Contract Driuil gss /Cagney Tract 6 Balboa Conan) Authorized by Resolution No. 8838 , adopted on July 12, 1976 Effective date of Contract July 28, 1976 Contract with George P. Zabel 6 Associates Address P.O. Box 1822, Newport Beach, CA 92663 bunt of Contract gee Agresusnt City Clerc City Hall 3300 W. Newport Blvd. Area Code 714 673 -2110 noxious • AGREEMENT FOR PROFESSIONAL SERVICES (Drilling Wells to Locate a Source of Noxious Gas - Cagney Tract and Balboa Coves) THIS AGREEMENT is made and entered into thisa day of , 1976, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation, hereinafter referred to as "City" and GEORGE P. ZEBAL & ASSOCIATES, hereinafter referred to as " Zebal" W I T N E S S E T H; WHEREAS, City has determined that it is desirable and necessary to have a study undertaken to locate a source of noxious gas along Pacific Coast Highway in the Balboa Coves and Cagney property area; and WHEREAS, Zebal is qualified to undertake and complete such work, and has submitted a written proposal dated June 29, 1976 to perform said work; and WHEREAS, City desires to accept said proposal; NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES, the parties hereto agree as follows: 1. General A. City engages Zebal to perform the services hereinafter described for the compensation hereinafter set forth. B. Zebal agrees to perform said services upon the terms and conditions hereinafter set forth. 2, Services to be Performed by Zebal. Zebal agrees to perform the services as outlined in his proposal dated June 29, 1976, a copy of which is attached hereto and marked Exhibit "A ", and which is incorporated herein by this reference as if fully set forth. If conflicts occur between this agreement of said proposal, the terms of this agreement shall control. Zebal agrees to coordinate its activities with the Public Works Director of the City of Newport Beach. I • • 3. Duties of City. City agrees to supply Zebal with such information, materials and consultation services as are reasonably necessary to provide Zebal with data, maps and other relevant materials owned and controlled by City for preparation of the work hereunder. It is further agreed that the City will provide the following legal, engineering and labor services: A. Obtain Division of oil and Gas drilling permits and drilling bonds. B. Secure state and city lease parking lot permits. C. Survey hole locations and legally describe drill sites. D. Provide a waterline (at least one inch in diameter). E. Provide location, preparation and clean up crews. F. Provide the services of Mr. James S. Gilstrap, Consultant to City, for the following purposes: (i) Division of Oil and Gas liaison; (ii) Engineering supervision; (iii) Supervision of waste disposal and abandonment procedures. 4. Ownership of Project Documents. Original draw- ings, reports; maps, notes, photographs and other documents shall become the property of City and may be reproduced as deemed necessary by City. 5. Consultant in Charge. George P. Zebal, principal of George P. Zebal & Associates, shall be consultant in charge of the project in the preparation of all materials and reports thereunder. 6. Right of Termination. City reserves the right to terminate this agreement at any time by giving Zebal five (5) working days prior written notice. Notice shall be deemed served -2- 0 0 on Zebal two (2) days after deposit in the United States Mail, postage prepaid, addressed to Zebal's office at Post Office Box 1822, Newport Beach, California 92663. In the event of termination due to fault of Zebal, City shall be relieved of any obligation to compensate Zebal beyond compensation paid to Zebal prior to termination. In the event of termination for any other reason than fault of Zebal, City agrees to compensate Zebal for actual services performed to the effective date of the Notice of Termination, on the basis of the fee schedule contained in the proposal. 7. Completion of Work. Zebal agrees to work as expeditiously as possible and agrees to complete all work described herein within six (6) months after notice to proceed. 8. Payment. A. In consideration of the above described services, City agrees to pay Zebal an amount based upon the cost schedule as outlined in Exhibit "A ". In no event, however, shall the total compensation exceed Twenty Thousand Dollars ($20,000.00) except as provided in Paragraph 9 below. follows: B. Contract amount shall be paid to Zebal as (i) Zebal shall submit monthly progress billings based upon a percentage of completion of the work, as determined by the fee schedule. The sum of the monthly partial payment shall not exceed ninety percent (908) of the maximum fee. (ii) The balance of the total amount earned shall be paid upon acceptance of the final report by the City; acceptance will not be unreasonably withheld. 9. Amendments. The scope of the services to be furnished by Zebal may be changed, the maximum fee revised upon -3- 0 0 written prior approval of the Public Works Director if the increase in the maximum fee does not exceed Two Thousand Dollars ($2,000.00). If revisions of the scope of the services result in an increase in the maximum fee exceeding Two.Thousand Dollars ($2 000.00), an amendment to this agreement providing for such revision shall be processed and executed by the parties hereto. 10. Insurance. Zebal will hire Dick Howell's Hole Drilling Service to perform certain work under this agreement. Dick Howell's Hole Drilling Service shall provide a certificate of insurance, as specified in Exhibit "A ", naming the City of Newport Beach and George P. Zebal & Associates as additional insureds and said certificate shall further provide that the insurance is primary insurance and not contributing with any other insurance available to the City of Newport Beach. 11. Hold Harmless. Zebal shall indemnify and hold harmless City, its officers, agents and employees, from any damage or liability arising from any errors, omissions, or negligence in Zebal's performance of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be made and executed the day and year first above written. ATTEST: City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation 1 By Jayor GEORGE P. ZEBAL & ASSOCIATES By �-clCnrty p -4- GEORGE P. ZEBAL AND ASSOCIATES INDUSTRIAL UTILIZATION OF GEOLOGY 29 June 1976 Mr. Joseph T. Devlin, Director Public Works Department City of Newport Beach Newport Beach, California 92660 Dear Mr. Devlin: Per your request, George P. Zebal and Associates are here- with submitting a letter of proposal to drill shallow wells on state -owned property to locate the source of noxious gas plaguing the Cagney and Balboa Coves Tracts. On 1 March 1976, a report by George Zebal recommended that shallow drilling be undertaken to discover the source formations containing noxious gas. on 16 April 1976, the City of.Newport Beach entered into a contract, Cooperative Agreement No. 3332, to administer a professional services agreement to accomplish this work. It was determined that a cost - effective exploratory effort consisting of two core holes drilled to depths of 150 feet could be obtained for the level of funding proposed. For possible ad- ditional core holes at sites other than the Cagney Tract and for drilling and completing a gas disposal well at a site denoted by exploratory drilling, supplemental ap- propriations will be required. Because of the specialized nature of the geological in- vestigation and core hole drilling program, a professional services agreement was proposed by the Public Works Department to expedite conduct of the work in an economic and satisfactory manner. Therefore, Cooperative Agreement No. 3332 was amended to allow the City to enter into a ' professional services agreement with Zebal and Associates to perform this work. Zebal and Associates hereby offer to provide and supervise geological and drilling services. It is requested that the City provide the following legal, engineering, and labor services: (1) Obtain Division of Oil and Gas drilling permits and drilling bonds. (2) Secure State and City- leased parking lot permits. (3) Survey hole locations and legally describe drill sites. P.O. BOX 1822, NEWPORT BEACH, CALIFORNIA 92663 (714) 642 -5588 EXHIBIT "A" 0 or (4) Provide water line (at least 1 -inch diameter). (5) Provide 'location preparation and cleanup crews. (6) Provide the services of Mr. James S. Gilstrap, Consultant to the City, for the following purposes: Division of Oil and Gas liaison Engineering supervision Supervision of waste disposal and abandonment procedures. Zebal and Associates will locate sites for two holes on the Cagney Tract per the attached plat, provide geological logging and gas analysis services, and compile a final report. Dick Howell's Hole Drilling Service will be en- gaged to core drill the holes, provide conductor casing and tubing, and collect formation samples. A three -man crew will be utilized and drilling will be confined to daylight hours. The following specifications will be applied. A 36 -inch hole will be drilled to a depth of approximately 10 feet and 30 -inch conductor casing inserted without cement to control surface caving. A 16 -inch core hole will be carried to a total depth not to exceed 150 feet. Past ex- perience in this area demonstrates that drilling mud will be required after water table level is reached. A detailed geological description of each foot of core will be made. All sands encountered will be sampled by immediately sealing a generous sample in a glass jar for analysis by a. General Monitors methane detector. In addition, as drilling proceeds all physical evidences of the presence. of gas will be carefully described and evaluated. After reaching total depth, a vacuum truck will be present to transfer or remove all waste mud (mud from Hole No. 1 can be used in Hole No. 2) and the hole will be abandoned by pumping oil field grade cement from bottom to top through tubing. A Division of Oil and Gas engineer will witness this operation. Any postdrilling cleanup required and minor repaving of the parking lot will be accomplished by City crews. After the initial two holes are drilled, the results will be carefully analyzed to determine whether a third hole is required or whether the program can immediately progress -2 l � to drilling a final gas interception well. It is estimated that costs per :•:ell will be as follows: Drilling ($56.50 /hour and 24 hours /hole) $1,356.00 Supervision ($25 /hour) 900.00 Vacuum truck and cleanup costs 2,000.00 Abandonment (cementing costs) 1,300.00 Supplies (drilling mud, move costs, etc) 300.00 Contingencies (at 10%) 1 1 600.00 Total estimated costs per hole . $6,456.00 Under no circumstances will total costs for the entire job be allowed to exceed $20,000. Liability insurance will be carried per the following minimum limits as specified by the City: Comprehensive liability, combined single limit for bodily injury or property damage. Each occurrence: $ 500,000 Aggregate protective: 500,000 Aggregate products: 1,000,000 Aggregate contractual: 500,000 The policy shall include the following coverages: a. Contractual or Assumed Liability, relating to.con- tract between the named insured and the certificate holder. b. Owned, hired, and non -owned automobiles. c. Contractors Protective Liability d. Products Liability or Completed Operations. e..Explosion and underground hazards._ f. Personal injury hazards. g. Broad form Property Damage. The policy is held by Dick Howell's Hole Drilling Service. The City and George P. Zebal and Associates will be in- cluded as additional insured parties. George P. Zebal L] RESOLUTION NO. g 83 8 6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND GEORGE P. ZEBAL & ASSOCIATES TO DRILL TWO WELLS ON THE "CAGNEY PROPERTY" TO LOCATE A SOURCE OF NOXIOUS GAS WHEREAS, the "Cagney Property" and "Balboa Coves Tracts" have been plagued with continuing noxious gas problem; and WHEREAS, the City entered into Cooperative Agree- ment No. 3332 with the State of California to undertake professional services to discover the source of the formations containing said noxious gases; and WHEREAS, Cooperative Agreement No. 3332 was amended to allow the City to enter into a professional services agreement to perform the work; and WHEREAS, the State of California has agreed by said Cooperative Agreement No. 3332, as amended, to pay one -half of the costs of the professional services agreement or Ten Thousand Dollars ($10,000.00) whichever sum is less; and WHEREAS, the City Council has reviewed the terms and conditions of a proposed agreement between the City of Newport Beach and George P. Zebal & Associates and finds them to be satisfactory and further finds that it would be in the best interest of the City to authorize the Mayor and City Clerk to execute said agreement; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that said agreement above described is hereby approved, and the Mayor and City Clerk are hereby authorized and directed to execute the same on behalf of the,City of Newport Beach. ADOPTED this __Z,a day of L , 1976. Mayor ATTEST: City Clerk. HRC:yz .,7/12/76