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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
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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
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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
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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