HomeMy WebLinkAboutC-4463 - PSA to Provide Management and Operations Services for the City's Oil FieldsAMENDMENT NO. ONE TO
PROFESSIONAL SERVICES AGREEMENT WITH
SAMPSON OIL COMPANY
TO PROVIDE MANAGEMENT AND OPERATIONS SERVICES
FOR THE CITY'S OIL FIELDS
THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT
is entered into as of this � day of November, 2012, by and between the CITY OF
NEWPORT BEACH, a California municipal corporation ( "City "), and SAMPSON OIL
COMPANY a California corporation whose address is 301 Ultimo Avenue, Long Beach,
California 90814 ( "Contractor "), and is made with reference to the following:
RECITALS:
A. On January 26, 2010 ( "Commencement Date "), City and Contractor entered into
a Professional Services Agreement ( "Agreement ") to provide management and
operations services for the City's Oil Well Fields ( "Project ").
B. City desires to enter into this Amendment No. One to reflect additional services
not included in the Agreement and to increase the total compensation to
Contractor and update insurance requirements ( "Amendment No. One ").
C. City and Contractor mutually desire to amend the agreement, as provided below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
Section 2 and Exhibit A of the Agreement shall be supplemented to include the
Schedule of Additional Services, which is attached hereto as Exhibit A and incorporated
herein by reference. Exhibit A of the Agreement and Exhibit A of Amendment No. One
shall collectively be known as "Exhibit A ". The City may elect to delete certain tasks of
the Services To Be Performed at its sole discretion.
2. COMPENSATION TO CONTRACTOR
Section 6 of the Agreement shall be amended in its entirety and replaced with the
following:
A. City shall pay Contractor for the work and services described in Exhibit A
on a time and expense not -to- exceed basis in accordance with the
provisions of this Section, Exhibit A and the Fee Schedule attached hereto
as Exhibit B and incorporated herein by reference. Contractor's total
compensation for all work and services performed in accordance with this
Agreement as amended, including all reimbursable items, subcontractor
fees and Contractor's Fee, shall not exceed Three Hundred Fifty -Nine
Thousand Seven Hundred and Sixty Dollars and no /100 ($359,760.00)
( "Amended Contract Amount ") per 12 -month period, commencing with the
second anniversary of the Commencement Date. No billing rate changes
shall be made during the term of this Agreement, or any extension thereof,
without the prior written approval of the City, except for the annual
adjustment to the Amended Contract Amount in proportion to changes in
the Consumer Price Index, as more particularly described in Section 6.D,
below. The Amended Contract Amount reflects Contractor's additional
compensation over and above the original Contract Amount for additional
services to be performed, reimbursabies, subcontractor fees, as well as
the initial 2.5% maximum Consumer Price Index adjustment increase
effective January 26, 2012.
B. Contractor shall submit monthly invoices to City describing the work and
services performed the preceding month. City shall pay Contractor no
later than thirty (30) days after approval of the invoice by City staff.
Payment shall be deemed made when deposited in the United States
mail, first -class postage pre -paid, and addressed to Contractor as
specified in Section 23.
C. City shall reimburse Contractor only for those fees or expenses
specifically identified in the Fee Schedule, which is attached hereto as
Exhibit B and incorporated herein by reference, or as specifically approved
in writing in advance by City.
D. Upon the third anniversary of the Commencement Date and upon each
anniversary of the Commencement Date thereafter, the Amended
Contract Amount shall be adjusted in proportion to changes in the
Consumer Price Index, subject to the maximum adjustment set forth
below. Such adjustment shall be made by multiplying the Amended
Contract Amount 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 immediately prior to Commencement Date, i.e.,
October 2009. The Consumer Price Index to be used in such calculation
is the "Consumer Price Index, All Items, 1982 -84 =100 for All Urban
Consumers (CPI -U) ", for the Los Angeles- Riverside - Orange County
Metropolitan Area, published by the United States Department of Labor,
Bureau of Labor Statistics. 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 Amended Contract Amount in effect immediately
preceding such adjustment. The maximum adjustment increase to the
SAMPSON OIL COMPANY 2
Amended Contract Amount, for any year where an adjustment is made
pursuant to this Section, shall not exceed 2.5% of the Amended Contract
Amount in effect immediately preceding such adjustment.
3. FAMILIARITY WITH WORK AND WORK SITE
Section 9.A shall be amended in its entirety to read as follows: By executing this
Agreement, as amended, Contractor warrants that Contractor. (a) has thoroughly
investigated and considered the work and services to be performed, (b) has carefully
considered how the work and services should be performed, and (c) fully understands
the facilities, difficulties and restrictions attending performance of the work and services
under this Agreement. Contractor warrants that Contractor has investigated the sites
depicted in Exhibit A and is fully acquainted with the conditions there existing, prior to
commencement of services hereunder.
4. INSURANCE
Section 11 of the Agreement shall be amended in its entirety and replaced with
the following:
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 and any extensions thereof, policies of insurance
against claims for injuries to persons or damages to property, which may arise
from or in connection with the performance of the work and services hereunder
by Contractor, his agents, representatives, employees or subcontractors. Said
insurance shall be 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.
A. Proof of Insurance. Contractor shall provide certificates of insurance and
endorsements, or copies of the applicable insurance language to City as
evidence of the insurance coverage required herein, along with a waiver of
subrogation endorsement for workers' compensation. Insurance
certificates and endorsement must be approved by City's Risk Manager
prior to commencement of performance. Current certification of insurance
shall be kept on file with City at all times during the term of this Agreement
and any extensions thereof. City reserves the right to require complete,
certified copies of all required insurance policies, at any time.
B. 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
SAMPSON OIL COMPANY 3
Best's Key Rating Guide, unless otherwise approved by the City's Risk
Manager,
C. Coverage Requirements.
i. Workers' Compensation Coverage. Contractor shall maintain
Workers' Compensation Insurance (Statutory Limits) and
Employer's Liability Insurance (with limits of at least one million
dollars ($1,000,000)) 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.
Any notice of cancellation or non - renewal of all Workers'
Compensation policies must be received by City at least thirty (30)
calendar days (ten (10) calendar days written notice of non-
payment of premium) prior to such change.
Contractor shall submit to City, along with the certificate of
insurance, a Waiver of Subrogation endorsement in favor of City, its
officers, agents, employees and volunteers.
ii. General Liability Coverage. Contractor shall maintain commercial
general liability insurance, Insurance Services Office Form
CG0001, in an amount not less than five million dollars
($5,000,000) per occurrence for bodily injury, personal injury,
property damage, and products and completed operations,
including without limitation, blanket contractual liability. If a general
aggregate limit applies, either the general aggregate limit shall
apply separately to this projectllocation or the general aggregate
limit shall be twice the required occurrence limits.
ill. Automobile Liability Coverage. Contractor shall maintain
automobile insurance, Insurance Services Office Form CG0001,
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 $1,000,000 combined single limit for each accident.
iv. Pollution Liability Coverage. Contractor shall maintain pollution
liability insurance with onsite and third party coverage in an amount
not less than five million dollars ($5,000,000). If a general
SAMPSON OIL COMPANY 4
aggregate limit applies, either the general aggregate limit shall
apply separately to this project/location or the general aggregate
limit shall be twice the required occurrence limits.
D. Other Insurance Provisions or Requirements.
The policies are to contain, or be endorsed to contain, the following provisions:
i. Additional Insured Status. All liability policies including general
liability, excess liability, pollution liability, and automobile liability,
but not including professional liability (if required), shall provide or
be endorsed to provide that City and its officers, officials,
employees, volunteers and agents shall be included as insureds
under such policies on Insurance Services Form CG 20 10 11 85 or
CG 2010 and CG 2037.
ii. Primary and Non Contributory. For any claims related to this
agreement, the Contractor's insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees,
volunteers and agents and shall not require contribution from any
insurance or self- insurance maintained by City.
iii. Waiver of Subrogation. 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.
iv.. Enforcement of Contract 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.
V. 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.
SAMPSON OIL COMPANY 5
vi. Notice of Cancellation. Contractor agrees to oblige its insurance
agent or broker and insurers to provide to City with thirty (30) days
notice of cancellation (except for nonpayment for which ten (10)
days notice is required) or nonrenewal of coverage for each
required coverage.
vii. Claims Made Policies. If any of the required policies provide
coverage on a claims -made basis:
1. The Retroactive Date must be shown and must be before
the date of the agreement or the beginning of the agreement
work.
2. Insurance must be maintained and evidence of insurance
must be provided for at least five (5) years after the
completion of the agreement work.
3. If coverage is canceled or non- renewed, and not replaced
with another claims -made policy form with a Retroactive
Date prior to the agreement effective date, the Contractor
must purchase "extending reporting" coverage for a
minimum of five (5) years after completion of agreement
work.
viii. Subcontractors. Contractor shall require and verify that all
subcontractors maintain insurance meeting the requirements as set
forth in the Schedule of Subcontractor Insurance Limits by Service
Type, which is .attached hereto as Exhibit C and incorporated
herein by reference.
E. Timms Notice of Claims. Contractor shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from
Contractor's performance under this Agreement.
F. Additional Insurance. Contractor shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of
the work.
5. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants set forth
in the Agreement shall remain unchanged and shall be in full force and effect.
SAMPSON OIL COMPANY 6
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No.
One on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:
By:
Aaron C. Harp
City Attorney M 10-11
ATTEST:
Date:
By: yWUU
Leilani I. Brown
City Clerk
r�
U
c
ORNIPA
CITY OF NEWPORT BEACH,
A California unicipal corporation
Date:
By:
Nancy Gardnef—
Mayor
CONTRACTOR: SAMPSON OIL
COMPANY, a California corporation
Date: i 1 /i .Z 1.7— Ci -z—
By: By:
Renick Sampson
Owner
Date:
B�
y
Pam ickard
Secretary
Attachments: Exhibit A -- Schedule of Additional Services
Exhibit B -- Fee Schedule
Exhibit C -- Schedule of Subcontractor Insurance Limits by
Service Type
SAMPSON OIL COMPANY 7
i * /aI -.Ill ,1
SCHEDULE OF ADDITIONAL. SERVICES
A. Additional Services
In conjunction with its Agreement to provide management and operations services at
the City's oil fields, and subject to the limits and procedures set forth below, Contractor
agrees to perform the following additional tasks:
1. Enter into contracts and agreements directly with subcontractors, consultants,
vendors and/or delivery companies for all work necessary for the smooth and
efficient operation of the City's oil fields.
2. Receive invoices for all said work performed by subcontractors, consultants,
vendors and delivery companies at the City's oil fields.
3. Review and approve all valid and substantiated invoices for authorized work
performed at City's oil fields, following City's procedures as set forth herein.
4. Process and pay said invoices directly to subcontractors, consultants, vendors
and delivery companies.
5. Obtain required City - approved insurance documents from subcontractors,
consultants, vendors and delivery companies prior to allowing their work at the
City's oil fields. A list of the required insurance limits is contained in Exhibit C.
B. Approval Requirements for Contracts Between Contractor and Subcontractor,
Consultant. Vendor and /or Delivery Company
Contractor shall comply with the following, based on proposed total value of contract:
(a) Under $10,000: Written notification to Utilities General Manager.
(b) $10,000 to $25,000: Prior written approval by Utilities General
Manager. Must include a minimum of three proposals or a sole source
jstiffication document.
(c) Over $25,000: Prior written approval by Municipal Operations
Department Director. Must include a minimum of three proposals or a
sole source document.
SAMPSON OIL COMPANY A -1
EXHIBIT B
FEE SCHEDULE
The following fees to perform all services required under this Agreement, as amended, reflect
the initial 2.5% maximum adjustment increase effective January 26, 2012, as set forth in
Section 6 of the Agreement. This schedule is based on a 365 day work year.
• Pumper
$
49,397.83/year
• Design and Engineering
$
3,383.52/year
• Rig Supervision
$
15,225.35/year
• Construction Supervision
$
15,225.35/year
• Addendum
$
9,852.30/year
• Special Insurance Charges*
$
16,675.65/year *Includes all costs to satisfy
City's insurance requirements.
Total Annual Fee for Above
Services Not to Exceed
$ 109.76Q, QQ
Contractor shall be entitled to reimbursement for the cost of Additional Services performed as
set forth in Exhibit A, Section A of this Amendment No. One, plus a fee not to exceed 10% of
the invoice amounts paid by Contractor to subcontractors, consultants, vendors and delivery
companies, as set forth herein (`Contractor's Fee ").
Total Annual Fee for Additional
Services Plus Contractor's Fee
Not to Exceed
SAMPSON OIL COMPANY B -1
EXHIBIT C
SCHEDULE OF SUBCONTRACTOR INSURANCE LIMITS BY SERVICE TYPE
All subcontractors, consultants, vendors and /or delivery companies shall provide General
Liability with endorsements as outlined in Section 11 of the Agreement with the following limits,
according to the type of service provided:
Pump Unit Repair
Well Maintenance, Well Pulling
Misc. Electrical Work
Clean Up and Removal of Oil Waste
Motor Repairs
Tank Repairs
Welding, Misc.
Testing of Tubes
$1,000,000 Occurrence
$5,000,000 Occurrence
$1,000,000 Occurrence
$2,000,000 Occurrence*
$1,000,000 Occurrence
$1,000,000 Occurrence
$2,000,000 Occurrence
$1,000,000 Occurrence
For all of the above, Aggregate limits shall be twice the Occurrence limit or apply specifically to
this Agreement.
All subcontractors shall provide Automobile Liability and Workers Compensation with
endorsements as outlined in the Agreement.
*Clean up and removal of oil waste vendors must also carry Pollution Liability
SAMPSON OIL COMPANY C -1
.,,�
November 27, 2492
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FRONT: Municipal Operations Department
Mark Hammon, Municipal Operations Department director
949 644 -3055, mharmon@newportbeachca.gov
PREPARED BY: George Murdoch, Utilities General Manager
APPROVED:
TITLE: Amendment No. One to Agreement with Sampson Oil Company, for
Additional Services to Manage and Operate the City's Oil Fields
ABSTRACT:
Sampson Oil Company (Sampson) currently manages and operates the City's oil fields.
This amendment allows Sampson (with City approval) to purchase materials and
manage subcontractors to perform as- needed repairs and maintenance. Efficiency will
be increased by reducing down time of the wells and saving numerous hours of staff
time preparing requests for proposals (RFPs), agreements, insurance review, and
acquiring multiple proposals for purchases.
RECOMMENDATION:
Authorize the Mayor and City Clerk to enter into Amendment No. One to Professional
Services Agreement with Sampson Oil Company to provide additional management and
operations services for the City's oil fields.
FUNDING:
The current adopted budget includes sufficient funding for this amendment. It will be
expensed to the Oil and Gas Tidelands Fund maintenance and repair account in the
Municipal Operations Department, budget number 5400 -8160.
Sampson will be entitled to reimbursement for the cost of Additional Services plus a fee
not to exceed 10% of the invoice amounts paid by Sampson to the subcontractors,
consultants, vendors and delivery companies. (Maximum of $25,000 annually based on
10% of the maintenance budget).
Amendment No. One to Agreement with Sampson Oil Company, for Additional Services
to Manage and Operate the City's Oil Fields
November 27, 2012
Page 2
DISCUSSION:
Sampson has managed and operated the City's oil fields in West Newport since 1984.
In 2010, following a formal RFP process, Sampson entered into an agreement with the
City for the continued management and operation of the City's oil fields. Current
agreement services include the daily maintenance, repair and operation of the City's 16
oil wells, the production tank facility, production lines and provide services coordinating
regulatory agency inspections, and compliance. The purchasing of goods, such as
chemicals, and acquiring of contractors for unforeseen repairs is the responsibility of
city staff. The individual contracts and purchase requests are established and managed
by city staff following the City contract and purchasing guidelines.
Previously, the City entered into several on-call agreements with contractors in the
event that the oil wells require unforeseen repairs. The approximate time needed to
create a contract is four months; this includes the preparation of RFPs, contractor
negotiations, insurance documentation and the final agreement. In some cases a
specialized service is needed for which the city does not have an on-call agreement. In
this case an oil well may sit out of service for several weeks or months until an
agreement can be established. Additionally, the oil operations require certain materials
such as chemicals, filtering material, and normal replacement parts. Currently, these are
purchased by City staff and provided to Sampson.
This amendment requires Sampson to follow the same City processes such as:
acquiring proposals for materials, entering into contracts and agreements with sub-
contractors, processing invoices, paying for services, and obtaining proper insurance
coverage for work being done. Sampson will be required to seek City approval prior to
any purchase or service. The approval process is based on total value of work shown
below.
Total value of work Approval Requirements
Under $10,000
Written notification to the Utilities General Manager
$10,000 to $25,000
Written approval by the Utilities General Manager. Must include a
minimum of three proposals, or a sole source justification
Over $25,000
Written approval by Municipal Operations Director. Must include a
minimum of three proposals or a sole source justification
Amendment No. One to Agreement with Sampson Oil Company, for Additional Services
to Manage and Operate the City's Oil Fields
November 27, 2012
Page 3
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.
NOTICING:
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),
Submitted
Mark Harmon
Municipal Operations Director
Attachments: A. Amendment #1 to Professional Services Agreement with Sampson
Oil Company to Provide Management and Operations Services for
the City's Oil Fields
Original 1/26/10 Contract
Proposed Amendment #1
Term
Terminates 1/25/11 with four
No change
(4) automatic one -year
extensions: currently
terminates 1/25/13 (with one
extension until 1/25/14 after
that
_
services to be performed
As described in RFP
As amended to include
contracting with and paying
all associated
subcontractors that used to
be contracted and paid
directly by city.
Compensation
$104,400 /year. With yearly
$359,760/year (accounts for
cost of living increase
direct payments from
contractor to
subcontractors). With
early cost of livinq increase
Insurance
Standard terms
Risk Management added
new provisions to cover new
contractor - subcontractor
relationship
Exhibit A
Original scope of work
New scope of work includes
contracting with subs and
procedures for
subcontracting
Exhibit B
Original fees
New fee schedule includes
subcontractor fee limits,
insurance charges
Exhibit C
None
New schedule of
subcontractor insurance
requirements per Risk
Mana ement
AMENDMENT NO. ONE TO
PROFESSIONAL SERVICES AGREEMENT WITH
SAMPSON OIL COMPANY
TO PROVIDE MANAGEMENT AND OPERATIONS SERVICES
FOR THE CITY'S OIL FIELDS
THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT
is entered into as of this _ day of November, 2012, by and between the CITY OF
NEWPORT BEACH, a California municipal corporation ( "City"), and SAMPSON OIL
COMPANY a California corporation whose address is 301 Ultimo Avenue, Long Beach,
California 90814 ( "Contractor "), and is made with reference to the following:
RECITALS:
A. On January 26, 2010 ( "Commencement Date "), City and Contractor entered into
a Professional Services Agreement ( "Agreement ") to provide management and
operations services for the City's Oil Well Fields ( "Project ").
B. City desires to enter into this Amendment No. One to reflect additional services
not included in the Agreement and to increase the total compensation to
Contractor and update insurance requirements ( "Amendment No. One ").
C. City and Contractor mutually desire to amend the agreement, as provided below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
' riles ;!UrlMx.Af91.3 ; *:jA001 NJ114 7
Section 2 and Exhibit A of the Agreement shall be supplemented to include the
Schedule of Additional Services, which is attached hereto as Exhibit A and incorporated
herein by reference. Exhibit A of the Agreement and Exhibit A of Amendment No. One
shall collectively be known as "Exhibit A ". The City may effect to delete certain tasks of
the Services To Be Performed at its sole discretion.
2. COMPENSATION TO CONTRACTOR
Section 6 of the Agreement shall be amended in its entirety and replaced with the
following:
A. City shall pay Contractor for the work and services described in Exhibit A
on a time and expense not -to- exceed basis in accordance with the
provisions of this Section, Exhibit A and the Fee Schedule attached hereto
as Exhibit B and incorporated herein by reference. Contractor's total
compensation for all work and services performed in accordance with this
Agreement as amended, including all reimbursable items, subcontractor
fees and Contractor's Fee, shall not exceed Three Hundred Fifty -Nine
Thousand Seven Hundred and Sixty dollars and nol100 ($359,760.40)
( "Amended Contract Amount ") per 12 -month period, commencing with the
second anniversary of the Commencement Date. No billing rate changes
shall be made during the term of this Agreement, or any extension thereof,
without the prior written approval of the City, except for the annual
adjustment to the Amended Contract Amount in proportion to changes in
the Consumer Price Index, as more particularly described in Section 6.13,
below. The Amended Contract Amount reflects Contractors additional
compensation over and above the original Contract Amount for additional
services to be performed, reimbursables, subcontractor fees, as well as
the initial 2.5% maximum Consumer Price Index adjustment increase
effective January 26, 2012.
B. Contractor shall submit monthly invoices to City describing the work and
services performed the preceding month. City shall pay Contractor no
later than thirty (30) days after approval of the invoice by City staff.
Payment shall be deemed made when deposited in the United States
mail, first -class postage pre -paid, and addressed to Contractor as
specified in Section 23,
C. City shall reimburse Contractor only for those fees or expenses
specifically identified in the Fee Schedule, which is attached hereto as
Exhibit B and incorporated herein by reference, or as specifically approved
in writing in advance by City.
D. Upon the third anniversary of the Commencement Date and upon each
anniversary of the Commencement Date thereafter, the Amended
Contract Amount shall be adjusted in proportion to changes in the
Consumer Price Index, subject to the maximum adjustment set forth
below. Such adjustment shall be made by multiplying the Amended
Contract Amount 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 immediately prior to Commencement Date, i.e.,
October 2009. The Consumer Price Index to be used in such calculation
is the "Consumer Price Index, All Items, 1982 - 84=100 for All Urban
Consumers (CPI -U) ", for the Los Angeles - Riverside - Orange County
Metropolitan Area, published by the United States Department of Labor,
Bureau of Labor Statistics. 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 Amended Contract Amount in effect immediately
preceding such adjustment. The maximum adjustment increase to the
SAMPSON OIL COMPANY 2
Amended Contract Amount, for any year where an adjustment is made
pursuant to this Section, shall not exceed 2.5% of the Amended Contract
Amount in effect immediately preceding such adjustment.
3. FAMILIARITY WITH WORK AND WORK SITE
Section 9.A shall be amended in its entirety to read as follows: By executing this
Agreement, as amended, Contractor warrants that Contractor: (a) has thoroughly
investigated and considered the work and services to be performed, (b) has carefully
considered how the work and services should be performed, and (c) fully understands
the facilities, difficulties and restrictions attending performance of the work and services
under this Agreement. Contractor warrants that Contractor has investigated the sites
depicted in Exhibit A and is fully acquainted with the conditions there existing, prior to
commencement of services hereunder.
4. INSURANCE
Section 11 of the Agreement shall be amended in its entirety and replaced with
the following:
Without limiting Contractor's indemnification of City, and prior to commencement
of worts, Contractor shall obtain, provide and maintain at its own expense during
the term of this Agreement and any extensions thereof, policies of insurance
against claims for injuries to persons or damages to property, which may arise
from or in connection with the performance of the work and services hereunder
by Contractor, his agents, representatives, employees or subcontractors. Said
insurance shall be 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.
A. Proof of Insurance. Contractor shall provide certificates of insurance and
endorsements, or copies of the applicable insurance language to City as
evidence of the insurance coverage required herein, along with a waiver of
subrogation endorsement for workers' compensation. Insurance
certificates and endorsement must be approved by City's Risk Manager
prior to commencement of performance. Current certification of insurance
shall be kept on file with City at all times during the term of this Agreement
and any extensions thereof. City reserves the right to require complete,
certified copies of all required insurance policies, at any time.
B. 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
SAMPSON OIL COMPANY 3
Best's Key Rating Guide, unless otherwise approved by the City's Risk
Manager.
C. Coverage Requirements.
Workers' Compensation Coverage. Contractor shall maintain
Workers' Compensation Insurance (Statutory Limits) and
Employers Liability Insurance (with limits of at least one million
dollars ($1,000,000)) for Contractors 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 subcontractors
employees.
Any notice of cancellation or non - renewal of all Workers'
Compensation policies must be received by City at least thirty (30)
calendar days (ten (14) calendar days written notice of non-
payment of premium) prior to such change.
Contractor shall submit to City, along with the certificate of
insurance, a Waiver of Subrogation endorsement in favor of City, its
officers, agents, employees and volunteers.
H. General Liability Coverage. Contractor shall maintain commercial
general liability insurance, Insurance Services Office Form
CG0001, in an amount not less than five million dollars
($5,000,000) per occurrence for bodily injury, personal injury,
property damage, and products and completed operations,
including without limitation, blanket contractual liability. If a general
aggregate limit applies, either the general aggregate limit shall
apply separately to this project/location or the general aggregate
limit shall be twice the required occurrence limits.
Ill. Automobile Liability Coverage. Contractor shall maintain
automobile insurance, Insurance Services Office Form CG0001,
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 $1,000,000 combined single limit for each accident.
iv. Pollution Liability Coverage, Contractor shall maintain pollution
liability insurance with onsite and third party coverage in an amount
not less than five million dollars ($5,000,000). If a general
SAMPSON OIL COMPANY 4
aggregate limit applies, either the general aggregate limit shall
apply separately to this projectllocation or the general aggregate
limit shall be twice the required occurrence limits.
D. Other Insurance Provisions or Requirements.
The policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status. All liability policies including general
liability, excess liability, pollution liability, and automobile liability,
but not including professional liability (if required), shall provide or
be endorsed to provide that City and its officers, officials,
employees, volunteers and agents shall be included as insureds
under such policies on Insurance Services Form CG 20 10 11 85 or
CG 2010 and CG 2037.
ii. Primary and Non Contributory. For any claims related to this
agreement, the Contractor's insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees,
volunteers and agents and shall not require contribution from any
insurance or self - insurance maintained by City.
III. - Waiver of Subrogation. 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.
iv.. ,Enforcement of Contract 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.
V. 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.
vi. Notice of Cancellation. Contractor agrees to oblige its insurance
agent or broker and insurers to provide to City with thirty (30) days
notice of cancellation (except for nonpayment for which ten (10)
days notice is required) or nonrenewal of coverage for each
required coverage.
vii. Claims Made Policies. If any of the required policies provide
coverage on a claims -made basis:
1. The Retroactive Date must be shown and must be before
the date of the agreement or the beginning of the agreement
work.
2. insurance must be maintained and evidence of insurance
must be provided for at least five (5) years after the
completion of the agreement work.
3. If coverage is canceled or non- renewed, and not replaced
with another claims -made policy form with a Retroactive
Date prior to the agreement effective date, the Contractor
must purchase "extending reporting" coverage for a
minimum of five (5) years after completion of agreement
work.
viii. Subcontractors. Contractor shall require and verify that all
subcontractors maintain insurance meeting the requirements as set
forth in the Schedule of Subcontractor Insurance Limits by Service
Type, which is. attached hereto as Exhibit C and incorporated
herein by reference.
E. Timely Notice of Claims. Contractor shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from
Contractor's performance under this Agreement.
F. Additional Insurance. Contractor shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of
the work.
5. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants set forth
in the Agreement shall remain unchanged and shall be in full force and effect.
SAMPSON OIL COMPANY 6
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No.
One on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
oatP, is / /zl /Z--
Aaron C. Hasp
City Attorney M 13 I o- I I
ATTEST:
Date:
CITY OF NEWPORT BEACH,
A California municipal corporation
Date:
By:
Nancy Gardner
Mayor
CONTRACTOR: SAMPSON OIL
COMPANY, a California corporation
Date:
By: By:
Leilani I. Brown Renick Sampson
City Clerk Owner
Date:
Pam Pickard
Secretary
Attachments: Exhibit A -- Schedule of Additional Services
Exhibit B -- Fee Schedule
Exhibit C — Schedule of Subcontractor Insurance Limits by
Service Type
SAMPSON OIL COMPANY 7
EXHIBIT A
SCHEDULE OF ADDITIONAL SERVICES
A. Additional Services
In conjunction with its Agreement to provide management and operations services at
the City's oil fields, and subject to the limits and procedures set forth below, Contractor
agrees to perform the following additional tasks:
1. Enter into contracts and agreements directly with subcontractors, consultants,
vendors and /or delivery companies for all work necessary for the smooth and
efficient operation of the City's oil fields.
2. Receive invoices for all said work performed by subcontractors, consultants,
vendors and delivery companies at the City's oil fields.
3. Review and approve all valid and substantiated invoices for authorized work
performed at City's oil fields, following City's procedures as set forth herein.
4. Process and pay said invoices directly to subcontractors, consultants, vendors
and delivery companies.
5. Obtain required City - approved insurance documents from subcontractors,
consultants, vendors and delivery companies prior to allowing their work at the
City's oil fields. A list of the required insurance limits is contained in Exhibit C.
B. Approval Requirements for Contracts Between Contractor and Subcontractor
Consultant, Vendor and /or Delivery Company
Contractor shall comply with the following, based on proposed total value of contract:
(a) Under $10,000: Written notification to Utilities General Manager.
(b) $10,000 to $25,000: Prior written approval by Utilities General
Manager. Must include a minimum of three proposals or a sole source
justification document.
(c) Over $25,000: Prior written approval by Municipal Operations
Department Director. Must include a minimum of three proposals or a
sole source document.
SAMPSON OIL COMPANY A -1
FEE SCHEDULE
The following fees to perform all services required under this Agreement, as amended, reflect
the initial 2.5% maximum adjustment increase effective January 26, 2012, as set forth in
Section 6 of the Agreement. This schedule is based on a 365 day work year.
• Pumper $ 49,397.83/year
• Design and Engineering $ 3,383.52/year
• Rig Supervision $ 15,225.35/year
• Construction Supervision $ 15,225.35/year
• Addendum $ 9,852.301year
• Special Insurance Charges* $ 16,675.651year *includes all costs to satisfy
City's insurance requirements.
Total Annual Fee for Above
Services Not to Exceed $ 109 7 flf.OQ
Contractor shall be entitled to reimbursement for the cost of Additional Services performed as
set forth in Exhibit A, Section A of this Amendment No. One, plus a fee not to exceed 10% of
the invoice amounts paid by Contractor to subcontractors, consultants, vendors and delivery
companies, as set forth herein ( "Contractor's Fee ").
Total Annual Fee for Additional
Services Plus Contractor's Fee
Not to Exceed
t rtt tt
SAMPSON OIL COMPANY B -1
1 1:IIA k
SCHEDULE OF SUBCONTRACTOR INSURANCE LIMITS BY SERVICE TYPE
All subcontractors, consultants, vendors and/or delivery companies shall provide General
Liability with endorsements as outlined in Section 11 of the Agreement with the following limits,
according to the type of service provided.
Pump Unit Repair
Well Maintenance, Well Pulling
Misc. Electrical Work
Clean Up and Removal of Oil Waste
Motor Repairs
Tank Repairs
Welding, Misc.
Testing of Tubes
$1,000,000 Occurrence
$5,000,000 Occurrence
$1,000,000 Occurrence
$2,000,000 Occurrence*
$1,000,000 Occurrence
$1,000,000 Occurrence
$2,000,000 Occurrence
$1,000,000 Occurrence
For all of the above, Aggregate limits shall be twice the Occurrence limit or apply specifically to
this Agreement.
All subcontractors shall provide Automobile Liability and Workers Compensation with
endorsements as outlined in the Agreement.
*Clean up and removal of oil waste vendors must also carry Pollution Liability
SAMPSON OIL COMPANY C -1
• 0 *5
PROFESSIONAL SERVICES AGREEMENT WITH
SAMPSON OIL COMPANY
TO PROVIDE MANAGEMENT AND OPERATIONS SERVICES
FOR THE CITY'S OIL FIELDS
THIS AGREEMENT is made and entered into as of this 26`h day of January, 2010, by
and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City "), and
Renick Sampson, doing business as ( "DBA ") SAMPSON OIL COMPANY, a sole
proprietorship, whose address is 301 Ultimo Ave., Long Beach, California, 90814
( "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 desires to engage Contractor to provide management services for the City's
Oil Well Fields ( "Project ").
C. Contractor possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
D. The principal member of Contractor for purposes of Project shall be Rennick
Sampson.
E. City has solicited and received a proposal from Contractor, has reviewed the
previous experience and evaluated the expertise of Consultant, 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
Unless terminated earlier in accordance with Section 24 of this Agreement, the
Term of this Agreement shall be for a period of one (1) year. The term shall
commence within ten (10) working days of City Council approval of this Agreement
and upon the City's receipt and approval of all required certificates of insurance.
The term of this Agreement shall automatically be extended for four (4) additional
one (1) year terms (automatic extensions) with the extensions to automatically
commence upon the expiration of the initial term or any extended term, unless the
City notifies Contractor in writing at least thirty (30) days before the end of the initial
term or any extended term, of its intent to terminate this Agreement. Time is of the
essence in the performance of services under this Agreement.
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2. SERVICES TO BE PERFORMED
A. Contractor shall diligently perform all the services described in the
Request for Statement of Qualifications /Proposal attached hereto as
Exhibit A and incorporated herein by reference. The City may elect to
delete certain tasks of the Scope of Services at its sole discretion.
B. As a material inducement to the City for entering into this Agreement,
Contractor warrants that all work and services to be provided hereunder
shall be performed in a competent, professional and satisfactory manner
by an adequate level of staff with the appropriate level of training.
Contractor covenants that A shall follow the highest professional
standards in performing the work and services and that all equipment and
supplies used will be of good quality, fit for the purpose intended. 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.
3. PERSONNEL REQUIREMENTS
A. All contract services shall be performed by competent and experienced
employees. The Contractor shall comply with all state and federal legal
requirements regulating the right to work in the United States of America
to ensure that all members of the work force have the legal right to
perform work under this Agreement. Contractor shall make any records
related thereto available to the City within ten (10) days of receiving a
written request for said records by the City.
B. All supervisors and lead workers must be able to communicate effectively
in English (both orally and in writing). Any order given to these
supervisors or lead workers shall be deemed delivered to the Contractor.
C. The City reserves the right to conduct a background investigation of any
employee of Contractor and to require the Contactor to remove any
employee whose performance is deemed unsatisfactory in the City's sole
discretion. Persons employed by the Contractor who are found
unsatisfactory by the City shall be discharged or reassigned by the
Contractor on fifteen (15) days notice from the City.
D. Contractor shall be responsible for compliance with all local, state, and
federal laws and regulations regarding chemical usage. Contractor shall
employ or retain, at its sole cost and expense, all professional and
technical personnel necessary to properly perform contract services.
E. The City will periodically inspect all work performed by the Contractor.
F. Contractor shall ensure there is no lapse in services.
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4. LICENSES, FEES, PERMITS AND TAXES
Contractor shall obtain at its sole cost and expense such licenses, permits and
approvals as may be required by law for the performance of the services
required by this Agreement. Contractor shall have the sole obligation to pay for
any fees, assessments and taxes, plus applicable penalties and interest, which
may be imposed by law and arise from or are necessary for the Contractor's
performance of the services required by this Agreement, and shall indemnify,
defend and hold harmless City against any such fees, assessments, taxes,
penalties or interest levied, assessed or imposed against City hereunder.
5. COMPLIANCE WITH ALL LAWS
All work and services rendered hereunder shall be provided in accordance with
all ordinances, resolutions, statues, rules and regulations of the City and any
Federal, State, or local governmental agency of competent jurisdiction.
6. COMPENSATION TO CONTRACTOR
City shall pay Contractor the sum of Eight Thousand Seven Hundred Dollars
and nol100 ($8,700) per month for a total of One Hundred Four Thousand
Four Hundred Dollars and nol100 ($104,400) per year ( "Contract Amount") to
perform all the work and services contemplated by and described in Exhibit A
and the Schedule of Billing Rates attached hereto as Exhibit B. Payment for
services shall be made to Contractor once a month upon submission of an
invoice explaining in sufficient detail the services performed. City shall pay
invoices within thirty (30) days after approval of the invoice by the City. Payment
shall be deemed made when deposited in the United States mail, first -class
postage pre -paid, and addressed to Contractor as specified in Section entitled
"Notices."
Upon the second anniversary of the Commencement Date and upon each
anniversary of the Commencement Date thereafter, the Contract Amount shall
be adjusted in proportion to changes in the Consumer Price Index, subject to the
2.5% maximum adjustment increase set forth below. Such adjustment shall be
made by multiplying the original Contract Amount 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 immediately prior to Commencement Date. For example,
if the adjustment is to occur effective June 1, 2009, the index to be used for the
denominator is the index for the month of March preceding the Commencement
Date. 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, Bureau of Labor Statistics. 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,
7.
8.
Q
however, shall the amount payable under this Agreement be reduced below the
Contract Amount in effect immediately preceding such adjustment. No
adjustment shall be made on the first anniversary of the Commencement Date.
The maximum increase to the Contract Amount, for any year where an
adjustment is made in proportion to changes in the Consumer Price Index, shall
not exceed 2.5% of the Contract Amount in effect immediately preceding such
adjustment.
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
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 Contractor's 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.
REPAIR/REPLACEMENT
A. The Contractor shall adopt reasonable methods to furnish continuous
protection to City property and equipment to prevent loss or damage, and
shall be responsible for all such damages, to persons or property, except
such loss or damage as may be caused by City's sole negligence or willful
misconduct.
B. Contractor shall advise the Utilities Operation Manager of any damage to
City equipment or property immediately upon becoming aware of the
damage.
C. Contractor shall repair, at its sole cost and expense, any damage to City
equipment or property caused by Contractor or its agents, employees,
representatives or office
FAMILIARITY WITH WORK ANJ WORK SITE
A. By executing this Agreer
thoroughly investigated
performed, (b) has car
performed, and (c) fu
restrictions attending pe
Contractor warrants that
Exhibit B and is fully acq
commencement of servi(
E)nt, Contractor warrants that Contractor: (a) has
and considered the Scope of Services to
fully considered how the services should be
y understands the facilities, difficulties and
wmance of the services under this Agreement.
;ontractor has investigated the sites depicted in
ainted with the conditions there existing, prior to
s hereunder.
4
r •
B. City and Contractor agree that City has made no representation regarding
the order or condition of any area or location for which Contractor is to
provide services or that the site or location of work will be free from
defects, apparent or hidden, at the commencement of, or at any time
during the term of this Agreement.
10. 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,
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 work performed or services provided under this Agreement (including,
without limitation, defects in workmanship and /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, Contractors, 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.
11. 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 at all times during the term of this Agreement.
B. Signature. A person authorized by the insurer to bind coverage on its
behalf shall sign certification of all required policies.
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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.
i. Workers' Compensation Coverage. Contractor shall maintain
Workers' Compensation Insurance and Employers 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.
ii. General Liability Coverage. Contractor shall maintain commercial
general liability insurance in an amount not less than five million
dollars ($5,000,000) 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.
iii. Automobile Liability Coverage. Contractor shall maintain
automobile insurance covering bodily injury and property damage
for all activities of the Consultant 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.
iv. Pollution Liability Coverage. Contractor shall maintain pollution
liability insurance with onsite and third party coverage in an amount
not less than five million dollars ($5,000,000).
E. Endorsements. Each general liability and automobile liability insurance
policy shall be endorsed with the following specific language:
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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.
ii. 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 Contractor's 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.
iii. 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.
iv. The insurer waives all rights of subrogation against City, its elected
or appointed officers, officials, employees, agents and volunteers.
V. 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.
vi. 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
judgment may be necessary for its proper protection and prosecution of
the work.
12. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
A. Contractor may not assign any right or obligation of this Agreement or any
interest in this Agreement without the prior written consent of City. Any
attempted or purported assignment without the consent of the City shall
be null and void. Contractor acknowledges that these provisions relative
to assignment are commercially reasonable and that Contractor does
possess special skills, abilities and personnel uniquely suited to the
performance of contract services and any assignment of this Agreement
7
to a third party, in whole or in part, could jeopardize the satisfactory
performance of contract services. Contractor may not employ any
Subcontractors unless specifically authorized by City
B. 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 venture which shall result in changing the control
of Contractor, shall be construed as an assignment of this Agreement.
13. RECORDS
A. All Contractor's books and other business records, or such part as may be
used in the performance of this Agreement, shall be subject to inspection
and audit by any authorized City representative during regular business
hours.
B. 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, including man hours,
incurred under this Agreement. All such records shall be clearly
identifiable. Contractor shall allow a representative of City during normal
business hours to examine, audit, and make transcripts or copies of such
records. Contractor shall maintain and allow inspection of all work, data,
documents, proceedings and activities related to this Agreement for a
period of three (3) years from the date of final payment under this
Agreement.
14. ADMINISTRATION
This Agreement will be administered by the Utilities Department. The Utilities
Operation Manager, Ed Burt, shall be considered the City's Administrator and
shall have the authority to act for City under this Agreement. The Administrator
or his /her authorized representative shall represent the City in all matters
pertaining to the services to be rendered under this Agreement.
15. INCREASE OR DECREASE IN SCOPE OF SERVICES
A. Contractor may be asked to perform additional oil well management
services by the Administrator. The Administrator may give verbal
authorization for additional services up to $500. Administrator shall
provide Contractor with written authorization prior to the performance of
any additional services that exceed $500.
B. City reserves the right to withdraw certain oil wells or tasks from the work
to be performed by Contractor pursuant to this Agreement. City shall
notify Contractor in writing of its intent to do so at least thirty (30) days
prior to the effective date of withdrawal of any oil well. In the event an oil
well is withdrawn from the Scope of Services, compensation to Contractor
shall be reduced in accordance with costs specified in Exhibit B. In the
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event the oil well is withdrawn for a period of less than a full one (1) year
term, Contractor's compensation shall be reduced on a prorated basis.
16. WORK DEFICIENCIES AND CORRECTIONS
A. The Contractor's performance will be evaluated on a regular basis. When
problems are identified, the City will notify Contractor. If issues are
serious or go unresolved, a Notice of Deficiency will be issued to
Contractor in writing. This notice will detail the issues and give a cure
period to resolve them.
B. Failure to correct the deficiencies listed in the Notice of Deficiency within
the timeframe specified by the City, in the City's sole discretion, result in
action being taken by the City, including, but not limited to, (a) withholding
payment for the subject deficiency until the work is completed; (b)
correcting the deficiency (using the City's own work force and /or by
contracting out) and deducting any associated costs plus overhead
incurred thereby from the total monthly compensation due the Contractor;
(c) deletion of the site(s) from the Contract and reducing the
corresponding compensation for that month; (d) contracting with another
Vendor to perform the management and other services required for the
remainder of the term of the Contract and deducting from the Contractor's
total compensation under the contract any costs that City pays or incurs
over and above the monthly billing rate by the Contractor for that site; (e)
terminating the agreement; and /or (f) taking any other action and
exercising any other legal remedy available to the City under law.
C. The City reserves the right to make appropriate deductions in payments
for unsatisfactory performance or failure to perform contract duties.
Payment deductions shall be based upon the Prices outlined in Exhibit B.
17. DISPUTES PERTAINING TO PAYMENT FOR WORK
Should any dispute arise respecting the value of the work done, or of any work
omitted, or of any extra work which Contractor may be required to do, or
respecting any payment to Contractor during the performance of the Agreement,
such dispute shall be decided by the City Manager and his decision shall be final
and binding upon Contractor and his sureties.
18. REIMBURSEMENT FOR
Contractor shall not be reimbursed for any expenses unless the City approves
the expense in advance in writing.
19. LABOR
A. Contractor shall conform with all applicable provisions of State and
Federal law including, applicable provisions of the Federal Fair Labor
Standards Act.
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B. Whenever Contractor has knowledge that any actual or potential labor
dispute is delaying or threatens to delay the timely performance of this
Agreement, Contractor shall immediately give notice to City, and provide
all relevant information.
C. Wages paid to Contractor for services provided hereunder shall be in
accordance with Section 1770 of the California State Labor Code. The
Director of Industrial Relations has ascertained the general prevailing rate
of per diem wages in the locality in which the work is to be performed for
each craft, classification, or type of workman or mechanic needed to
execute the contract. A copy of said determination is available by calling
the prevailing wage hotline number (415) 703 -4774, and requesting one
from the Department of Industrial Relations. All parties to the contract
shall be governed by all provisions of the California Labor Code Relating
to prevailing wage rates (sections 1770 -7981 inclusive).
20. NONDISCRIMINATION BY CONTRACTOR
Contractor represents and agrees that it does not, and will not, discriminate
against any Subcontractor, Contractor, employee or applicant for employment
because of race, religion, color, sex, handicap, national origin, or other basis that
is violative of the federal or state constitution or federal or state law. Contractor's
obligation not to discriminate shall apply, but not be limited to, the following:
employment, upgrading, demotion, transfers, recruitment, recruitment
advertising, layoff, termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship.
21. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other Contractors in connection with this
Project.
22. CONFLICTS OF INTEREST
A. 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 financial interest that may foreseeable be materially
affected by the work performed under this Agreement, and (2) prohibits
such persons from making, or participating in making, decisions that will
foreseeable financially affect such interest. The Contractor will provide a
completed disclosure form noting the above. Contractor will comply with
the Act and relevant City Resolutions.
B. 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 the City. The Contractor shall indemnify
and hold harmless the City for any claims for damages resulting from the
Contractor's violation of this Section.
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23. NOTICES
All notices, demands, requests or approvals to be given under this Agreement
must be given in writing, and will be deemed served when delivered personally or
on the second business day after the deposit thereof in the United States mail,
postage prepaid, registered or certified, addressed as hereinafter provided. All
notices, demands, requests or approvals from Contractor to City shall be
addressed to City at:
Attn: Mr. Ed Burt, Operations Manager
Utilities Department
City of Newport Beach
P.O. Box 1768
Newport Beach, CA, 92658 -8915
Phone: 949 - 718 -3432
Fax: 949 - 646 -5204
All notices, demands, requests or approvals from City to Contractor shall be
addressed to Consultant at:
Attention: Mr. Renick Sampson
Sampson Oil Company
301 Ultimo Ave.
Long Beach, CA 90814
Phone: 562 - 598 -5027
Fax: 562 - 493 -3130
24. TERMINATION /DEFAULT
A. In the event Contractor fails or refuses to timely perform any of the
provisions of this Agreement in the manner required or if Contractor
violates any provisions of this Agreement, Contractor shall be deemed in
default. If such default is not cured within a period of two (2) working days,
or if more than two (2) working days are reasonably required to cure the
default and the Contractor fails to give adequate assurance of due
performance within two (2) working days after Contractor receives written
notice of default from City, City may terminate the Agreement forthwith by
giving written notice. City may, in addition to the other remedies provided
in this or authorized by law, terminate this agreement by giving written
notice of termination.
B. This agreement may be terminated without cause by the City upon thirty
(30) days written notice. Upon termination, City shall pay to Contractor
that portion of compensation specified in the Agreement that is earned
and unpaid prior to the effective date of termination. The Contractor may
only terminate the Agreement in the event of nonpayment by the City. In
the event of nonpayment by the City, Contractor shall give the City thirty
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0
(30) days written notice thereof and the City shall have fifteen (15) working
days to cure the alleged breach.
C. In addition to, or in lieu of, remedies provided in this Agreement or
pursuant to law, City shall have the right to withhold all or a portion of
Contractor's compensation for contract services if, in the judgment of the
City Manager, the Contractor fails to satisfactorily perform contract
services. City shall have the right to retain funds withheld until the City
Manager determines that contract services are performed as well and as
frequently as required by this Agreement.
25. COST OF LITIGATION
If any legal action is necessary to enforce any provision of this Agreement or for
damages by reason for an alleged breach of any provisions of this Agreement,
the parties agree that attorneys' fees shall not be recoverable by the prevailing
party.
26. WAIVER
A waiver by City 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.
27. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or
nature whatsoever between the parties and all preliminary negotiations and
agreements of whatsoever kind or nature are merged in this Agreement. No
verbal agreement or implied covenant shall be held to vary the provisions
hereon.
28. 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.
29. 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.
11K
• •
30. 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.
31. 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.
13
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the day and year first written above.
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY:
y: ��n
eonie Mulvihill,
Assistant City Attorney
ATTEST:
F
By: Ok-
Leilani Brown,
City Clerk A
c�t� M;
CITY OF NEWPORT BEACH,
A Municipal Corporation
BY , I? e;���
Keith D. Curry,
Mayor
CONTRACTOR:
SAMPSON OIL COMPANY
By: —= iA'i1;LC'16
(Corporate Officer)
Title: President
Print Name: Renick Samoson
Attachments: Exhibit A – Statement of Qualifications/Request for Proposals
Exhibit B – Schedule of Billing Rates
14
City of Newport Beach
REQUESTFOR
STATEMENT OF QUALIFICATIONS
and
REQUEST FOR PROPOSALS
to provide
MANAGEMENT SERVICES
FOR THE CITY'S OIL WELL FIELD
Proposal Deadline: 3:00 p.m., Friday, June 5, 2009
CITY OF NEWPORT BEACH
Statement of Qualifications and Request for Proposal
•
INTRODUCTION
The City owns one (1) injection well and fifteen (15) circa -1950s oil wells that produce a
total of between 80 and 100 barrels of oil per day. The wells are operated under the
supervision of the City's Utilities Department however, day -to -day management has
historically been outsourced to a consultant firm. The City desires to seek competitive
bids from qualified consultants to ensure the continued professional and cost effective
management of the oil field.
II. SOQ1RFP OBJECTIVES
The purpose of this Statement of Qualifications ( "SOQ ") /Request for Proposal ( "RFP ") is
to select a qualified consultant firm, to assist the City of Newport Beach in managing,
operating and maintaining one (1) injection well and fifteen (15) oil wells located along
Coast Highway West in the City of Newport Beach.
III. SELECTION PROCESS
The City of Newport Beach is interested in receiving statements of qualifications and
proposals from qualified contractors for Oil Well Field Management Services. After a
careful review of each submitted proposal, the City will conduct an evaluation leading to
the selection of a Contractor and the award of a contract. The resultant contract is
intended as a four (4) year contract, with the possibility of up to two (2) one (1) year
extensions, renewable on an annual basis at the City's sole discretion based on the
contractor's performance. The contract will be re -bid no less than every six (6) years.
Copies of this request for statement of qualifications and request for proposal may be
obtained in person at the Administration office of the Utilities Department located at 949
West 16th Street, Newport Beach. Please do not mail any correspondence to the 16`"
Street address as it is not a valid mailing address.
IV. SCHEDULE of EVENTS
Mailing Date
SOQ/ RFQ Due
Award of Contract
Contractor In -Place
V. CITY POINT OF CONTACT
Thursday, May 14, 2009
Friday, June 5, 2009 by 3:00 p.m.
To be determined
To be determined
The sole source of contact regarding this SOQ /RFP is Ed Burt, Utilities Operation
Manager, (949) 718 -3432. Individuals or firms interested in submitting a proposal are
Request for QualificationsiProposals Page 2
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asked not to contact other members of the City of Newport Beach staff in connection
with the SOQ /RFP prior to the announcement of the selected contractor.
All written inquires related to this SOQ /RFP are to be submitted in a sealed envelope to:
Mr. Ed Burt
Utilities Operations Manager
Utilities Department
City of Newport Beach
P.O. Box 1768
Newport Beach, CA 92658 -8915
Or in person, in a sealed envelope, to the Administration office of the Utilities
Department located at:
949 West 16th Street
Newport Beach, CA 92663
Please do not mail any correspondence to the 16`h Street address as it is not a
valid mailing address.
Any inquiries must be labeled as follows:
CONFIDENTIAL
(INQUIRY REGARDING PROPOSAL FOR CITY OIL FIELD MANAGEMENT)
VI. CITY OF NEWPORT BEACH BUSINESS LICENSE
The Contractor must possess and maintain in effect a valid City of Newport Beach
Business License prior to commencement of work and during the entire time that work
is being performed under the contract.
VII. PROFESSIONAL LICENSES, PERMITS, ETC.
Contractor represents and warrants to the City that he /she has, and will keep in effect at
all times during the term of a contract with the City, all licenses, permits, professional
qualifications, and approvals of whatever nature that are legally required to practice
his /her trade. Vehicles and equipment must meet all current federal, State, and AQMD
regulations.
Vlll. PROPOSAL CLOSING DATE
Contractor must submit one (1) original and two (2) complete copies of the statement of
qualifications and proposal (copies must be marked "COPY "). All proposals and
statements of qualifications are due no later than 3:00 p.m., Friday, June 5, 2009. All
statement of qualifications and proposals must be mailed to:
Request for Qualifications/Proposals Page 3
• 0
Mr. Ed Burt
Utilities Operations Manager
Utilities Department
City of Newport Beach
P.O. Box 1768
Newport Beach, CA 92658 -8915
Or delivered, in person or by Courier to the Administration office of the Utilities
Department at 949 West 16th Street, Newport Beach, CA 92663. Please do not mail
any correspondence to the 16th Street address as it is not a valid mailing address.
Statements of Qualifications and Proposals must be labeled as follows:
CONFIDENTIAL
(PROPOSAL FOR CITY OIL FIELD MANAGEMENT)
Proposals will become a part of the official files of the City of Newport Beach and will
not be returned. Late or incomplete proposals will not be considered.
IX. INSTRUCTIONS AND CONDITIONS
See Attachment A.
X. DESCRIPTION OF PROJECT AND INTENT (Scope of Work)
See Attachment B.
XI. DELIVERABLES
The Contractor is responsible for the delivery of the Statement of Qualifications and
Proposal in the format and content explained in Attachment A, in keeping with the
schedule described in subsection IV.
XIL ATTACHMENTS
Attachment A: Instructions and Conditions
[:
Attachment B: Description of Project Intent (Scope of Work) 12
Attachment C: Map XX
Attachment D: Statement of Compliance XX
Attachment E: Draft Agreement XX
Request for Qualifications/Proposals Page 4
• 6
ATTACHMENT A:
INSTRUCTIONS AND CONDITIONS
I. STATEMENT OF QUALIFICATIONS
A. Provide a cover letter with the firm's name, address, phone/fax numbers,
email address and principal contact;
B. Provide a description of the services your firm provides;
C. Provide a local staffing list, including names and positions;
D. Provide advance notice requirements; i.e. the ability of your firm to provide
service on short notice;
E. Provide the resumes of key personnel;
F. Provide the list of public agency and /or private company work performed in
the last five, ten and fifteen years;
G. Provide job specific references, including specific contact names and phone
numbers; and
H. Provide a Fee Schedule for 2009 -2010.
The respondent must include all of the information requested above to be considered
responsive.
II. PROPOSAL REQUIREMENTS
Proposers are encouraged to submit proposals that exceed the minimum specifications
stated herein:
The proposal must contain: (1) a Technical section and (2) a not -to- exceed Time -Cost
section.
A. Technical Proposal
In the Technical section, the respondent should include schedules showing daily,
weekly, biweekly, monthly, bimonthly, quarterly, semi - annual and annual work
schedules, projected required personnel, and labor hours allocation. Most duties and
responsibilities are shown on Attachment 1, Scope of Work, however this list is not all -
inclusive and respondents should add any tasks, duties and /or responsibilities they
consider essential and /or valuable.
Request for Qualifications/Proposals Page 5
B. Time -Cost
In the Time -Cost section, the respondent must provide an estimate of the time and
costs that will be required to complete the project. This is a not -to- exceed cost and
should include an allowance for emergency services assistance.
C. Contract
A draft contract has been provided in Attachment E. Respondent shall thoroughly
review the contract. Within two weeks of award of contract, respondent must provide
evidence of insurance, complete with riders and additional insured, along with evidence
of having obtained a City of Newport Beach business license, or contract will be
nullified.
111. SOQ/RFP FORMAT
Contractor must submit one (1) original and two (2) complete copies of the statement of
qualifications and proposal (copies must be marked "COPY").
The response must contain a statement of qualifications and a concise narrative which
addresses, in the order presented, the evaluation criteria set forth in this solicitation.
The narrative response shall not exceed twenty (20) pages in length, exclusive of
appendix, cover page, letter of transmittal, and table of contents.
Proposals should be organized according to the following outline:
A. Letter of Transmittal
A letter of transmittal shall include the following:
1. The proposer's name and address;
2. Statement that indicates the proposal is valid for at least 90 days from
the proposal submission deadline;
3. Statement that indicates the proposer's willingness to perform the
services described in this SOQ /RFP;
4. Description of experience with similar projects and discuss firm's ability
to perform work. This should include a statement of experience
covering the firm's background and that of the sub - consultants
selected;
5. A statement that the project team and all other necessary resources
which are required to perform the services described in this RFP will
be made available by your organization over the life of the anticipated
Request for Qualifications/Proposals Page 6
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contract and any time limitations that may exist in being able to provide
them within 24 hours;
6. Statement that the signatory has authority to bind the proposer; and
7. Signature of authorized individual(s).
B. Time -Cost
Provide an estimate of the time and cost for this consulting engagement that includes
but is not limited to, incidental costs, travel, interview, and data gathering costs,
analysis, reports, and meetings.
C. Client References
Respondents shall include the name, address and telephone number of all clients, for
whom services similar to those described in this RFP, have been performed.
References should be relevant to the personnel described in the Statement of
Qualifications. Please provide a brief description of services provided with each
reference, as well as the name(s) of team members that provided the service.
The Consultant shall submit a list of all contracts that the Consultant has had with the
City of Newport Beach from January 2004 through March 2009. The list shall include:
short description of contract scope, the award date, date completed, and contract value.
If the Consultant has had no contract with the City since January 2004, the Consultant
shall so state.
IV. SCHEDULE
The selection of a firm for award of the contract will be by City staff who will evaluate the
responses to this solicitation. Responsive firms will be ranked numerically. The
recommendation of the top firm will be based on the results of reference checks,
qualifications of the firm and scope of service provided. A final contract will be
submitted to the City Council for approval and award.
The selection process for this RFP will be a qualifications based selection process
where price is considered, but is not a significant evaluation criterion. The top ranked
firm will be selected for contract negotiations and changes to the Cost -Time proposal
may be made. If contract negotiations fail to result in an agreement between proposer
and the City, negotiations will be terminated with selected proposer and second
proposer engaged in negotiations.
Note: The City reserves the right to negotiate with the top selected firms, if needed.
Request for QualificationslProposals Page 7
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V. RFP REVIEW CRITERIA
A review committee of evaluators will review responsive proposals based on the
following weighted scheme:
Firm Qualifications and Experience 35%
Management Plan 30%
Proposed Project Team 25%
Workload and Resources 10%
Total 100%
A. Firm Qualifications and Experience: Weight 35%
Provide detailed information on at least one (1) project of similar scope to the services
requested.
1. Description of your successes in providing management services for oil
facilities similar in size and nature.
2. Discussion of other projects that your firm has completed that you
believe would qualify your firm for this project.
3. Explain how your firm is prepared to address the unique environmental
issues related to oil field operation in Newport Beach.
4. Description of why your firm may be particularly qualified to be
selected for this project.
5. Provision of two (2) references for each project submitted.
B. Management Plan: Weight 30%
1. Discussion of your proposed management plan for this project.
Provide a table or chart that shows organizational structure, chain of
supervision, decision authority, and communications.
2. Provide work schedules for daily, weekly, bi- weekly, monthly,
bimonthly, quarterly, semi - annual and annual work tasks.
3. Provide a quality assurance plan for this project.
4. Discussion of the philosophical approach to the project taken by your
firm. The following are of particular interest.
a. Purpose of the consulting relationship;
Request for Qualifications/Proposals Page 8
b. Approach to meeting client objectives;
c. Description of your firm's approach to the project; and at a
summary level, the steps seen as an integral part of successfully
managing the oil field; and
d. Description of the roles of the team members and your
communication strategy with both the client and subconsultants (if
any).
C. Proposed Project Team: Weight 25%
1. Provision of the professional qualifications and experiences of the
proposed project team members. Discussion of your demonstrated
expertise in working as a team on recent projects.
2. A list of at least three (3) references (contact persons and
telephone numbers) for each person proposed.
D. Workload and Resources: Weight 10%
1. Discussion of both current and potential projects the project team is
contemplating as well as the current and potential time
commitments of your proposed project team.
E. Interviews
Selected proposers may be requested to interview with the evaluation committee.
Proposers will be notified in writing of the interview requirements, date, time, location,
and amount of time allowed for an interview /presentation and question and answer
period.
VI. ADMINISTRATIVE INFORMATION
A. Contact Person: Any information required or questions regarding this
RFP should be addressed to the project manager:
Mr. Ed Burt, Utilities Operations Manager
Utilities Department
City of Newport Beach
P.O. Box 1768
Newport Beach, CA 92658 -8915
Ph: (949) 718 -3432
Fax: (949) 646 -5204
E -mail: eburt(a)citv.newport- beach.ca.us
RAn,�esLE2� n�•�1±i�satictr�s�.r� z��- panf±. o - - - -
0 0
B. Deadline for Receipt of Proposals: Proposals may be mailed or hand
delivered, as long as three (3) copies are physically received by the City
no later than 3:00 p.m., Friday, June 5, 2009. Faxed proposals are not
acceptable. Proposals received after the above proposal submission
deadline will not be considered and will be returned.
C. Proposers Review and Substantive Questions: Proposers should
carefully review this RFP for errors, questionable or objectionable
materials, and items requiring clarification. Proposers shall put these
comments and/or questions in writing and submit them to the contact
person noted above. Please submit questions at least five (5) days before
the due date of proposals. This will allow time for an addendum to the
RFP to be issued, if required, to all recipients of the initial RFP.
D. Addendum to the RFP: The City reserves the right to issue written
addenda to revise or clarify the RFP, respond to questions, and/or extend
or shorten the due date of proposals.
E. Cancellation of the RFP: The City retains the right to cancel the RFP
process if it is in the City's best interest. The City shall not be responsible
for costs incurred by proposers for proposal preparation.
F. Proposal Withdrawal and Correction: A proposal may be corrected or
withdrawn by a written request received prior to the deadline for receipt of
proposals.
G. Retention of Proposals: All proposals and other material submitted
become City property and may be returned only at City's option.
H. Cost of Proposal Preparation: Any and all costs incurred by proposers
in preparing and submitting a proposal are the proposer's responsibility
and shall not be charged to the City or reflected as an expense of the
resulting contract.
1. Delivery of Proposals: The City assumes no responsibility or liability for
the transmission, delay, or delivery of proposals by either public or private
carriers.
J. Media Announcements: Any and all media announcements pertaining to
this RFP require City's prior written approval.
K. Binding Contract: This RFP does not obligate the City or the selected
proposer until a contract is signed and approved by all parties.
Request for Quallfications/Proposals Page 10
Management Tasks
Attachment B:
Description of Project Intent
SCOPE OF WORK
0
A. Perform all work necessary to manage, operate, produce, protect and maintain
the City owned tideland wells, tank farm, pipelines and related oil production
facilities in accordance with good oil field practice.
B. Respond to all emergencies and provide for personnel to safely and continuously
operate the oil facilities 24 hours a day, 7 days a week.
C. Provide qualified, licensed and available staff to complete the Scope of Work
D. Provide the City with detailed recommendations, estimates and technical advice
to maintain and improve production, maintenance and security for the oil
facilities.
E. Recommend, schedule, coordinate and inspect the work of all oil field service
contractors.
F. Keep accurate, daily records of all production, treatment of oil, cut and
temperature of oil, deliveries, shipments and field testing; and immediately make
available to the City upon request.
G. Schedule, supervise and coordinate the transfer of all oil and gas sold and
properly gauge and measure the quantity of oil and gas produced, saved and
shipped. Current oil production is approximately 85 -100 bbl oil per day; current
water production is approximately 1,100 bbl per day.
H. Keep detailed records and submit signed invoices for all materials, equipment
and services that will be reimbursed by the City.
I. Perform individual well tests at least every six months, indicating rate of
production, quantity of oil, and water produced.
J. Furnish all tools required for normal operations.
K. Examples of duties include, but are not limited to the following:
Request for Qualifications/Proposals Page 11
0
Operations Tasks
1. Take & record tank gauge readings daily
2. Plan tank management/shipping arrangements and prepare crude for shipping
3. Batch treat wells (approximately 40 treatments per week) for mineral buildup and
saltwater corrosion
4. Perform production well tests to determine water /oil ratios for each well
5. Program and maintain pump off controllers
6. Manage the water treatment system including, but not limited to:
a. Order chemicals
b. Maintain chemical rates
c. Fill day pots
d. Keep chemical pumps pumping
e. Maintain chemical lines and fittings
f. Maintain the Wemco
g. Change filter bags when necessary
h. Skim the skim tank daily
7. Maintain all daily records including, but not limited to:
a. Gage records
b. Chemical usage
c. Pump off controller daily runs times
d. Injection well rates and volumes
8. Manage water injection system
9. Manage natural gas system and vapor recovery system
10. Check wells and tank farm a minimum of three times a day
11. Generate spreadsheet on a monthly basis that tracks production curve and
depletion rate
Supervision and Related Issues
Supervise all production rig (repair) work including, but not limited to:
a. Tubing, rod and pump repair
b. Casing and liner repair
c. Inner liner installation
d. Well packer setting
e. Cementing
f. Fishing
2. Supervise all drilling rig work
3. Supervise all construction work
4. Prepare for and attend all meetings related to, but not limited to:
a. Wells
b. Tank farm
c. Pipelines
d. Natural gas
i. Hoag hospital
ii. Cogeneration
Request for Qualifications/Proposals Page 12
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e. Bitter Point sewage lift station (County Sanitation District of Orange
County)
f. Annual AQMD inspections
g. DOGG (Department of Oil, Gas and Geothermal Resources) inspections
h. Fire Department inspections
5. DOGG permitting and reporting
a. Permit to drill new well
b. Permit to redrill well
c. Permit to abandon well
d. Permit to alter casing
Design and Engineering Duties
including, but not limited to:
1. Tank farm alteration including, but not limited to:
a.
Crude oil system
b.
Water injection system
i. Wemco
ii. Pump sizing
iii. Pipe sizing
c.
Natural gas system
i. Gas sales
1. Chart changing
2. Maintain gas odorant
ii. Cogeneration
d.
Vapor recovery system
2. Design pump sizes and rod strings
3. Design all electrical loads
a.
Motor sizes
b.
Disconnect sizes
c.
Starter sizes
d.
Wire sizes
4. Design and engineer any new wells including,
a.
Casing design
b.
Liner size
c.
Wellhead design
d.
Pumping unit size
but not limited to:
Request for Qualifications/Proposals Page 13
• f
Attachment C:
Map
ERE MAP - Sa h FWd
Request for Qualifications/Proposals Page 14
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Attachment D:
Statement of Compliance
Each proposal must be accompanied by a signed Statement of Compliance. The
Contractor must sign one of the declarations stated below.
1. The person signing below declares that the proposal submitted by
(Name of Firm) ,Srt., ,T�amq n i CA to perform Management and
Operations Services for the City's Oil Well Fields as described in the SOQIRFP
dated , r— 2009 was prepared in strict compliance with the instructions,
conditions, and terms of the SOO, RFP, the Scope of Work, and Draft Agreement.
Signature
��S �2ooQ
Date
II. By signing below, the Contractor states that the proposal submitted by
(Name of Firm) has been
prepared in consideration of and with exception to some of the terms of
the RFP, Scope of Work, and Draft Agreement. The Contractor is
advised that exceptions and /or a suggested change to any of the terms
of the RFP, the Scope of Work, or Draft Agreement must be submitted in
writing as an attachment to the proposal submittal. By signing below,
the Contractor declares that the proposal includes a statement that
identifies each item to which the Contractor is taking exception or is
recommending change, includes the suggested rewording of the
contractual obligations or suggested change to the RFP, identifies the
reasons for submitting the proposed exception or change, as well as,
any impact the change or exception may have on contract costs,
scheduling, or other considerations. The City reserves the right to
reject any declarations that are not accompanied with the required
documentation as described above.
Signature
Printed Name and Title
Date
Request for Qualifications/Proposals Page 16
• •
Attachment E:
Draft Contract
"Intentionally Omitted"
Request for Qualifications/Proposals Page 17
•
Fee Schedule
E
Sampson Oil Company would like to present the following fee schedule
to manage and operate the City of Newport Beach's oil field. This
schedule is based on a 365 day work year. It also includes what it will
cost to increase Sampson Oil Company's Insurance to satisfy the City's
new insurance requirement. This schedule also includes the additional
work requested by the City (See Addendum on page 23).
• Pumper $48,193
• Design and Engineering 3,301
• Rig Supervision 141854
• Construction Supervision 14,854
• Addendum 9,612
• Special Insurance Charges 13,586
Total Annual Fee $104,400
Total Monthly Fee $8 700
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Addendum
•
Sampson Oil Company will provide labor to perform light maintenance
and repairs for the City of Newport Beach's 16 oil wells and production
facility. The maintenance and repairs will include, but not limited to,
the following:
Scope of Work
Maintenance
• Inspect oil levels (weekly)
Air balance pumping units
Air compressors
Vapor recovery compressor
Injection pump
• Grease
Wemco (weekly)
Plug valves (semi - annual)
• Check high level switches on all tanks (monthly)
• Replace odorant (when needed)
• Check pressure / vacuum relief valves on all tanks (monthly)
• Maintain injection pump: replace packing when needed, add oil
when needed, check belts and grease
• Clean Wemco (when needed)
• Maintain vapor recovery compressor
• Maintain filter system
• Maintain all air compressors
• Perform minor pipefitting
Repairs
• Minor pipe fitting jobs
• Repair minor leaks
• Repair or replace rod rotator cables
• Replace belts on small equipment
23
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
C--qq63
Agenda Item No. 10
January 26, 2010
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Utilities Department
Cindy Asher, Administrative Manager
949 -644 -3010 or rasher newportbeachca.gov
SUBJECT: APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH
SAMPSON OIL COMPANY FOR CITY OIL FIELD FACILITY
OPERATIONS AND MAINTENANCE SERVICES
ISSUE:
Should the City Council approve a Professional Services Agreement for the operation and
maintenance of the City's Oil Field Facility?
RECOMMENDATION:
Approve Professional Services Agreement (PSA) with Sampson Oil Company for the
operation and maintenance of the City's Oil Field Facility and authorize the Mayor and
City Clerk to execute the Agreement.
BACKGROUND:
Sampson Oil Company of Long Beach has operated the City's Oil Field Facility in West
Newport since 1984. Services include the daily maintenance and operation of the City's
16 oil wells, the production tank facility and all production lines and coordination of all
regulatory agency inspections.
The present contract with the Sampson Oil Company expired on May 1, 2007. Since
that time, they have been working on a month to month basis based on terms and
pricing consistent with the prior agreement. The Office of the City Attorney has advised
Utilities staff that a formal contract should be prepared. Staff took this opportunity to
solicit proposals to make sure the City is getting the most qualified operator at the most
economical cost. Staff prepared a Statement of Qualifications/Request for Proposals
(SOQ /RFP) to select a qualified contractor to assist the City of Newport Beach in
operating and maintaining the oil and gas production facilities.
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Operation & Maintenance of City's Oil Field Facility
Professional Services Agreement
January 26, 2010
Page 2
i
DISCUSSION:
The SOQ /RFP was mailed to twenty-two (22) operators, whose names were obtained
from the State Division of Oil, Gas and Geothermal Resources State website. Of the
twenty-two (22), the City received a total of four (4) proposals with one of the four being
non - responsive.
In the SOQ /RFP the firms were asked to provide the following information as the basis
for the City selection:
• Describe successes in providing management services for oil facilities similar in
size and nature.
• Provide detailed information on at least one project of similar scope to the
services requested.
• Discuss their proposed management plan for this project.
• Provide work schedules showing daily, weekly, biweekly, monthly, quarterly,
semi - annual and annual work tasks.
• Provide the required personnel and labor hour's allocation.
• Discuss both current and potential projects the project team is contemplating as
well as the current and potential project team time commitments.
The selection process for this SOQ/RFP was a qualification -based selection process
where price.is considered, but is not the major evaluation criterion. In evaluating the
proposals the following criteria were used and were specified in the City's
SOQ /RFP.
1. Firm Qualifications and Experience
35%
2. Management Plan
30%
3. Proposed Project Team
25%
4. Workload and Resources
10%
Total
100%
While the selection process was based on qualifications, the chart below lists the costs
and ranking for the companies.
Company
Ranking
Monthly Cost
Annual Cost
Imperial Occidental, Inc.
50 points
$25,600
$307,200
Remin er and Lawrence
30 points
$37,500
$450,000
Sampson Oil Company
80 points
$8,700
$104,400
• Operation & Mainte& of City's Oil Field Facility
Professional Services Agreement
January 26, 2010
Page 3
The Utilities Department recommends Sampson Oil Company be awarded the contract
as the most qualified firm. Sampson Oil was ranked first due to their demonstrated
experience as well as experience obtained at other fields they operate. Project Manager
Renick Sampson, a mechanical engineer, has more than 44 years of experience in
managing and operating oil well fields and his lead assistant has 33 years of oil field
experience. Over the many years that Sampson Oil Company has operated the City's
oil and gas production facilities; there no instances that required emergency responses
due to mechanical failures and spills. The facilities have been well maintained in an
efficient and economical manner. The State Division of Oil and Gas representatives
responsible for inspecting these facilities gives the City and Sampson Oil Company,
high ratings and is very complimentary of the operation.
To provide flexibility in any future decisions regarding the operation and management of
the oil and gas production facilities, staff is proposing that the initial agreement be for a
one (1) year term with the option of four (4) one (1) year extensions, renewable on an
annual basis at the City's sole discretion. To address the potential liability of the oil field
operation, the new proposed agreement includes insurance coverage requirements of
$5,000,000 for General Liability and $5,000,000 for Pollution Liability.
Environmental Review:
This project is exempt from environmental review under Section 15301 of the CEQA
Guidelines, pertaining to the maintenance of existing facilities.
Funding Availability:
The 2008 -09 oil sales produced $1,872,713 in revenue. There are sufficient funds
available in the current FY2009 -10 budget (account no. 5400 -8080) to cover the
contract cost. Funds will be budgeted in FY2010 -11 to cover the contract cost of
$104,400.
Prepared by:
Submitted by:
C �11�A s
Cindy Asher,Agibinistrative Manager eo ge urdo , Utilities Director
Attachments: Professional Services Agreement with Sampson Oil Company
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PROFESSIONAL SERVICES AGREEMENT WITH
SAMPSON OIL COMPANY
TO PROVIDE MANAGEMENT AND OPERATIONS SERVICES
FOR THE CITY'S OIL FIELDS
THIS AGREEMENT is made and entered into as of this 26'" day of January, 2010, by
and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City"), and
Renick Sampson, doing business as ( "DBA ") SAMPSON OIL COMPANY, a sole
proprietorship, whose address is 301 Ultimo Ave., Long Beach, California, 90814
( "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 cant' on its business as it is now
being conducted under the statutes of the State of California and the Charter of
City.
B. City desires to engage Contractor to provide management services for the City's
Oil Well Fields ( "Project ").
C. Contractor possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
D. The principal member of Contractor for purposes of Project shall be Rennick
Sampson.
E. City has solicited and received a proposal from Contractor, has reviewed the
previous experience and evaluated the expertise of Consultant, 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
Unless terminated earlier in accordance with Section 24 of this Agreement, the
Term of this Agreement shall be for a period of one (1) year. The term shall
commence within ten (10) working days of City Council approval of this Agreement
and upon the City's receipt and approval of all required certificates of insurance.
The term of this Agreement shall automatically be extended for four (4) additional
one (1) year terms (automatic extensions) with the extensions to automatically
commence upon the expiration of the initial term or any extended term, unless the
City notifies Contractor in writing at least thirty (30) days before the end of the initial
term or any extended term, of its intent to terminate this Agreement. Time is of the
essence in the performance of services under this Agreement.
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2. SERVICES TO BE PERFORMED
A. Contractor shall diligently perform all the services described in the
Request for Statement of Qualifications /Proposal attached hereto as
Exhibit A and incorporated herein by reference. The City may elect to
delete certain tasks of the Scope of Services at its sole discretion.
B. As a material inducement to the City for entering into this Agreement,
Contractor warrants that all work and services to be provided hereunder
shall be performed in a competent, professional and satisfactory manner
by an adequate level of staff with the appropriate level of training.
Contractor covenants that it shall follow the highest professional
standards in performing the work and services and that all equipment and
supplies used will be of good quality, fit for the purpose intended. 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.
3. PERSONNEL REQUIREMENTS
A. All contract services shall be performed by competent and experienced
employees. The Contractor shall comply with all state and federal legal
requirements regulating the right to work in the United States of America
to ensure that all members of the work force have the legal right to
perform work under this Agreement. Contractor shall make any records
related thereto available to the City within ten (10) days of receiving a
written request for said records by the City.
B. All supervisors and lead workers must be able to communicate effectively
in English (both orally and in writing). Any order given to these
supervisors or lead workers shall be deemed delivered to the Contractor.
C. The City reserves the right to conduct a background investigation of any
employee of Contractor and to require the Contactor to remove any
employee whose performance is deemed unsatisfactory in the City's sole
discretion. Persons employed by the Contractor who are found
unsatisfactory by the City shall be discharged or reassigned by the
Contractor on fifteen (15) days notice from the City.
D. Contractor shall be responsible for compliance with all local, state, and
federal laws and regulations regarding chemical usage. Contractor shall
employ or retain, at its sole cost and expense, all professional and
technical personnel necessary to properly perform contract services.
E. The City will periodically inspect all work performed by the Contractor.
F. Contractor shall ensure there is no lapse in services.
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4. LICENSES, FEES, PERMITS AND TAXES
Contractor shall obtain at its sole cost and expense such licenses, permits and
approvals as may be required by law for the performance of the services
required by this Agreement. Contractor shall have the sole obligation to pay for
any fees, assessments and taxes, plus applicable penalties and interest, which
may be imposed by law and arise from or are necessary for the Contractor's
performance of the services required by this Agreement, and shall indemnify,
defend and hold harmless City against any such fees, assessments, taxes,
penalties or interest levied, assessed or imposed against City hereunder.
5. COMPLIANCE WITH ALL LAWS
All work and services rendered hereunder shall be provided in accordance with
all ordinances, resolutions, statues, rules and regulations of the City and any
Federal, State, or local governmental agency of competent jurisdiction.
6. COMPENSATION TO CONTRACTOR
City shall pay Contractor the sum of Eight Thousand Seven Hundred Dollars
and no 1100 ($8,700) per month for a total of One Hundred Four Thousand
Four Hundred Dollars and no /100 ($104,400) per year ( "Contract Amount") to
perform all the work and services contemplated by and described in Exhibit A
and. the Schedule of Billing Rates attached hereto as Exhibit B. Payment for
services shall be made to Contractor once a month upon submission of an
invoice explaining in sufficient detail the services performed. City shall pay
invoices within thirty (30) days after approval of the invoice by the City. Payment
shall be deemed made when deposited in the United States mail, first -class
postage pre -paid, and addressed to Contractor as specified in Section entitled
"Notices."
Upon the second anniversary of the Commencement Date and upon each
anniversary of the Commencement Date thereafter, the Contract Amount shall
be adjusted in proportion to changes in the Consumer Price Index, subject to the
2.5% maximum adjustment increase set forth below. Such adjustment shall be
made by multiplying the original Contract Amount 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 immediately prior to Commencement Date. For example,
if the adjustment is to occur effective June 1, 2009, the index to be used for the
denominator is the index for the month of March preceding the Commencement
Date. 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, Bureau of Labor Statistics. 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,
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however, shall the amount payable under this Agreement be reduced below the
Contract Amount in effect immediately preceding such adjustment. No
adjustment shall be made on the first anniversary of the Commencement Date.
The maximum increase to the Contract Amount, for any year where an
adjustment is made in proportion to changes in the Consumer Price Index, shall
not exceed 2.5% of the Contract Amount in effect immediately preceding such
adjustment.
7. 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
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 Contractor's 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 worts, 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.
8. REPAIR/REPLACEMENT
A. The Contractor shall adopt reasonable methods to furnish continuous
protection to City property and equipment to prevent loss or damage, and
shall be responsible for all such damages, to persons or property, except
such loss or damage as may be caused by City's sole negligence or willful
misconduct.
B. Contractor shall advise the Utilities Operation Manager of any damage to
City equipment or property immediately upon becoming aware of the
damage.
C. Contractor shall repair, at its sole cost and expense, any damage to City
equipment or property caused by Contractor or its agents, employees,
representatives or officers.
9. FAMILIARITY WITH WORK AND WORK SITE
A. By executing this Agreement, Contractor warrants that Contractor. (a) has
thoroughly investigated and considered the Scope of Services to
performed, (b) has carefully considered how the services should be
performed, and (c) fully understands the facilities, difficulties and
restrictions attending performance of the services under this Agreement.
Contractor warrants that Contractor has investigated the sites depicted in
Exhibit B and is fully acquainted with the conditions there existing, prior to
commencement of services hereunder.
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B. City and Contractor agree that City has made no representation regarding
the order or condition of any area or location for which Contractor is to
provide services or that the site or location of work will be free from
defects, apparent or hidden, at the commencement of, or at any time
during the term of this Agreement.
10. 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,
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 work performed or services provided under this Agreement (including,
without limitation, defects in workmanship and /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, Contractors; 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.
11. 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 at all times during the term of this Agreement.
B. Signature. A person authorized by the insurer to bind coverage on its
behalf shall sign certification of all required policies.
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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.
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.
ii. General Liabilitv Coverage. Contractor shall maintain commercial
general liability insurance in an amount not less than five million
dollars ($5,000,000) 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.
iii. Automobile Liability Coverage. Contractor shall maintain
automobile insurance covering bodily injury and property damage
for all activities of the Consultant 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.
iv. Pollution Liability Coverage. Contractor shall maintain pollution
liability insurance with onsite and third party coverage in an amount
not less than five million dollars ($5,000,000).
E. Endorsements. Each general liability and automobile liability insurance
policy shall be endorsed with the following specific language:
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L 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.
ii. 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 Contractor's 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.
iii. 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.
iv. The insurer waives all rights of subrogation against City, its elected
or appointed officers, officials, employees, agents and volunteers.
V. 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.
Vi. 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
Contractor's 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
judgment may be necessary for its proper protection and prosecution of
the work.
12. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
A. Contractor may not assign any right or obligation of this Agreement or any
interest in this Agreement without the prior written consent of City. Any
attempted or purported assignment without the consent of the City shall
be null and void. Contractor acknowledges that these provisions relative
to assignment are commercially reasonable and that Contractor does
possess special skills, abilities and personnel uniquely suited to the
performance of contract services and any assignment of this Agreement
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to a third party, in whole or in part, could jeopardize the satisfactory
performance of contract services. Contractor may not employ any
Subcontractors unless specifically authorized by City
B. 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 venture which shall result in changing the control
of Contractor, shall be construed as an assignment of this Agreement.
13. RECORDS
A. All Contractor's books and other business records, or such part as may be
used in the performance of this Agreement, shall be subject to inspection
and audit by any authorized City representative during regular business
hours.
B. 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, including man hours,
incurred under this Agreement. All such records shall be clearly
identifiable. Contractor shall allow a representative of City during normal
business hours to examine, audit, and make transcripts or copies of such
records. Contractor shall maintain and allow inspection of all work, data,
documents, proceedings and activities related to this Agreement for a
period of three (3) years from the date of final payment under this
Agreement.
14. ADMINISTRATION
This Agreement will be administered by the Utilities Department. The Utilities
Operation Manager, Ed Burt, shall be considered the City's Administrator and
shall have the authority to act for City under this Agreement. The Administrator
or his/her authorized representative shall represent the City in all matters
pertaining to the services to be rendered under this Agreement.
15. INCREASE OR DECREASE IN SCOPE OF SERVICES
A. Contractor may be asked to perform additional oil well management
services by the Administrator. The Administrator may give verbal
authorization for additional services up to $500. Administrator shall
provide Contractor with written authorization prior to the performance of
any additional services that exceed $500.
B. City reserves the right to withdraw certain oil wells or tasks from the work
to be performed by Contractor pursuant to this Agreement. City shall
notify Contractor in writing of its intent to do so at least thirty (30) days
prior to the effective date of withdrawal of any oil well. In the event an oil
well is withdrawn from the Scope of Services, compensation to Contractor
shall be reduced in accordance with costs specified in Exhibit B. In the
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event the oil well is withdrawn for a period of less than a full one (1) year
tern, Contractor's compensation shall be reduced on a prorated basis.
16. WORK DEFICIENCIES AND CORRECTIONS
A. The Contractor's performance will be evaluated on a regular basis. When
problems are identified, the City will notify Contractor. If issues are
serious or go unresolved, a Notice of Deficiency will be issued to
Contractor in writing. This notice will detail the issues and give a cure
period to resolve them.
B. Failure to correct the deficiencies listed in the Notice of Deficiency within
the timeframe specified by the City, in the City's sole discretion, result in
action being taken by the City, including, but not limited to, (a) withholding
payment for the subject deficiency until the work is completed; (b)
correcting the deficiency (using the City's own work force and/or by
contracting out) and deducting any associated costs plus overhead
incurred thereby from the total monthly compensation due the Contractor;
(c) deletion of the site(s) from the Contract and reducing the
corresponding compensation for that month; (d) contracting with another
Vendor to perform the management and other services required for the
remainder of the term of the Contract and deducting from the Contractor's
total compensation under the contract any costs that City pays or incurs
over and above the monthly billing rate by the Contractor for that site; (e)
terminating the agreement; and /or (f) taking any other action and
exercising any other legal remedy available to the City under law.
C. The City reserves the right to make appropriate deductions in payments
for unsatisfactory performance or failure to perform contract duties.
Payment deductions shall be based upon the Prices outlined in Exhibit B.
17. DISPUTES PERTAINING TO PAYMENT FOR WORK
Should any dispute arise respecting the value of the work done, or of any work
omitted, or of any extra work which Contractor may be required to do, or
respecting any payment to Contractor during the performance of the Agreement,
such dispute shall be decided by the City Manager and his decision shall be final
and binding upon Contractor and his sureties.
18. REIMBURSEMENT FOR EXPENSES
Contractor shall not be reimbursed for any expenses unless the City approves
the expense in advance in writing.
19. LABOR
A. Contractor shall conform with all applicable provisions of State and
Federal law including, applicable provisions of the Federal Fair Labor
Standards Act.
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B. Whenever Contractor has knowledge that any actual or potential labor
dispute is delaying or threatens to delay the timely performance of this
Agreement, Contractor shall immediately give notice to City, and provide
all relevant information.
C. Wages paid to Contractor for services provided hereunder shall be in
accordance with Section 1770 of the California State Labor Code. The
Director of Industrial Relations has ascertained the general prevailing rate
of per diem wages in the locality in which the work is to be performed for
each craft, classification, or type of workman or mechanic needed to
execute the contract. A copy of said determination is available by calling
the prevailing wage hotline number (415) 703 -4774, and requesting one
from the Department of Industrial Relations. All parties to the contract
shall be governed by all provisions of the California Labor Code Relating
to prevailing wage rates (sections 1770 -7981 inclusive).
20. NONDISCRIMINATION BY CONTRACTOR
Contractor represents and agrees that it does not, and will not, discriminate
against any Subcontractor, Contractor, employee or applicant for employment
because of race, religion, color, sex, handicap, national origin, or other basis that
is violative of .the federal or state constitution- or federal or state law. Contractor's
obligation not to discriminate shall apply, but not be limited to, the following:
employment, upgrading, demotion, transfers, recruitment, recruitment
advertising, layoff, termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship.
21. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other Contractors in connection with this
Project.
22. CONFLICTS OF INTEREST
A. 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 financial interest that may foreseeable be materially
affected by the work performed under this Agreement, and (2) prohibits
such persons from making, or participating in making, decisions that will
foreseeable financially affect such interest. The Contractor will provide a
completed disclosure form noting the above. Contractor will comply with
the Act and relevant City Resolutions.
B. 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 the City. The Contractor shall indemnify
and hold harmless the City for any claims for damages resulting from the
Contractor's violation of this Section.
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23. NOTICES
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All notices, demands, requests or approvals to be given under this Agreement
must be given in writing, and will be deemed served when delivered personally or
on the second business day after the deposit thereof in the United States mail,
postage prepaid, registered or certified, addressed as hereinafter provided. All
notices, demands, requests or approvals from Contractor to City shall be
addressed to City at:
Attn: Mr. Ed Burt, Operations Manager
Utilities Department
City of Newport Beach
P.O. Box 1768
Newport Beach, CA, 92658 -8915
Phone: 949 -718 -3432
Fax: 949-646 -5204
All notices, demands, requests or approvals from City to Contractor shall be
addressed to Consultant at:
Attention: Mr. Renick Sampson
Sampson Oil Company
301 Ultimo Ave.
Long Beach, CA 90814
Phone: 562- 598 -5027
Fax: 562 -493 -3130
24. TERMINATION /DEFAULT
A. In the event Contractor fails or refuses to timely perform any of the
provisions of this Agreement in the manner required or if Contractor
violates any provisions of this Agreement, Contractor shall be deemed in
default. If such default is not cured within a period of two (2) working days,
or if more than two (2) working days are reasonably required to cure the
default and the Contractor fails to give adequate assurance of due
performance within two (2) working days after Contractor receives written
notice of default from City, City may terminate the Agreement forthwith by
giving written notice. City may, in addition to the other remedies provided
in this or authorized by law, terminate this agreement by giving written
notice of termination.
B. This agreement may be terminated without cause by the City upon thirty
(30) days written notice. Upon termination, City shall pay to Contractor
that portion of compensation specified in the Agreement that is earned
and unpaid prior to the effective date of termination. The Contractor may
only terminate the Agreement in the event of nonpayment by the City. In
the event of nonpayment by the City, Contractor shall give the City thirty
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(30) days written notice thereof and the City shall have fifteen (15) working
days to cure the alleged breach.
C. In addition to, or in lieu of, remedies provided in this Agreement or
pursuant to law, City shall have the right to withhold all or a portion of
Contractor's compensation for contract services if, in the judgment of the
City Manager, the Contractor fails to satisfactorily perform contract
services. City shall have the right to retain funds withheld until the City
Manager determines that contract services are performed as well and as
frequently as required by this Agreement.
25. COST OF LITIGATION
If any legal action is necessary to enforce any provision of this Agreement or for
damages by reason for an alleged breach of any provisions of this Agreement,
the parties agree that attorneys' fees shall not be recoverable by the prevailing
parry.
26. WAIVER
A waiver by City 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.
27. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or
nature whatsoever between the parties and all preliminary negotiations and
agreements of whatsoever kind or nature are merged in this Agreement. No
verbal agreement or implied covenant shall be held to vary the provisions
hereon.
28. 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.
29. 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.
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30. 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.
31. 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.
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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:
OFFICE OF THE CITY ATTORNEY:
eonie Mulvihill,
Assistant City Attorney
ATTEST:
JIM
Leilani Brown,
City Clerk
CITY OF NEWPORT BEACH,
A Municipal Corporation
By:
Keith D. Curry,
Mayor
CONTRACTOR:
SAMPSON OIL COMPANY
22
(Corporate Officer)
Title: President
Print Name: Renick Sampson
Attachments: Exhibit A — Statement of Qualifications /Request for Proposals
Exhibit B — Schedule of Billing Rates
14
City of Newport Beach EX IB R
�W P4
REQUEST FOR
STATEMENT OF QUALIFICATIONS
and
REQUEST FOR PROPOSALS
to provide
MANAGEMENT SERVICES
FOR THE CITY'S OIL WELL FIELD
Proposal Deadline: 3:00 p.m., Friday, June 5, 2009
CITY OF NEWPORT BEACH
Statement of Qualifications and Request for Proposal
0 0
I. INTRODUCTION
The City owns one (1) injection well and fifteen (15) circa -1950s oil wells that produce a
total of between 80 and 100 barrels of oil per day. The wells are operated under the
supervision of the City's Utilities Department however, day -to -day management has
historically been outsourced to a consultant firm. The City desires to seek competitive
bids from qualified consultants to ensure the continued professional and cost effective
management of the oil field.
II. SOQ/RFP OBJECTIVES
The purpose of this Statement of Qualifications ( "SOQ ") /Request for Proposal ( "RFP ") is
to select a qualified consultant firm, to assist the City of Newport Beach in managing,
operating and maintaining one (1) injection well and fifteen (15) oil wells located along
Coast Highway West in the City of Newport Beach.
III. SELECTION PROCESS
The City of Newport Beach is interested in receiving statements of qualifications and
proposals from qualified contractors for Oil Well Field Management Services. After a
careful review of each submitted proposal, the City will conduct an evaluation leading to
the selection of a Contractor and the award of a contract. The resultant Contract is
intended as a four (4) year contract, with the possibility of up to two (2) one (1) year
extensions, renewable on an annual basis at the City's sole discretion based on the
contractor's performance. The contract will be re-bid no less than every six (6) years.
Copies of this request for statement of qualifications and request for proposal may be
obtained in person at the Administration office of the Utilities Department located at 949
West 16th Street, Newport Beach. Please do not mail any correspondence to the 16"'
Street address as it is not a valid mailing address.
IV. SCHEDULE of EVENTS
Mailing Date
SOQ/ RFQ Due
Award of Contract
Contractor In -Place
V. CITY POINT OF CONTACT
Thursday, May 14, 2009
Friday, June 5, 2009 by 3:00 p.m.
To be determined
To be determined
The sole source of contact regarding this SOQ/RFP is Ed Burt, Utilities Operation
Manager, (949) 718 -3432. Individuals or fines interested in submitting a proposal are
Request for QualificationslProposals Page 2
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asked not to contact other members of the City of Newport Beach staff in connection
with the SOO/RFP prior to the announcement of the selected contractor.
All written inquires related to this SOO/RFP are to be submitted in a sealed envelope to:
Mr. Ed Burt
Utilities Operations Manager
Utilities Department
City of Newport Beach
P.O. Box 1768
Newport Beach, CA 92658 -8915
Or in person, in a sealed envelope, to the Administration office of the Utilities
Department located at:
949 West 16th Street
Newport Beach, CA 92663
Please do not mail any correspondence to the 160' Street address as it is not a
valid mailing. address.
Any inquiries must be labeled as follows:
CONFIDENTIAL
(INQUIRY REGARDING PROPOSAL FOR CITY OIL FIELD MANAGEMENT)
VI. CITY OF NEWPORT BEACH BUSINESS LICENSE
The Contractor must possess and maintain in effect a valid City of Newport Beach
Business License prior to commencement of work and during the entire time that work
is being performed under the contract.
VII. PROFESSIONAL LICENSES, PERMITS, ETC.
Contractor represents and warrants to the City that he /she has, and will keep in effect at
all times during the term of a contract with the City, all licenses, permits, professional
qualifications, and approvals of whatever nature that are legally required to practice
his /her trade. Vehicles and equipment must meet all current federal, State, and AQMD
regulations.
VIII. PROPOSAL CLOSING DATE
Contractor must submit one (1) original and two (2) complete copies of the statement of
qualifications and proposal (copies must be marked "COPY"). All proposals and
statements of qualifications are due no later than 3:00 p.m., Friday, June 5, 2009. All
statement of qualifications and proposals must be mailed to:
Request for Quallfications/Proposals Page 3
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Mr. Ed Burt
Utilities Operations Manager
Utilities Department
City of Newport Beach
P.O. Box 1768
Newport Beach, CA 92658 -8915
Or delivered, in person or by Courier to the Administration office of the Utilities
Department at 949 West 16th Street, Newport Beach, CA 92663. Please do not mail
any correspondence to the 16th Street address as it is not a valid mailing address.
Statements of Qualifications and Proposals must be labeled as follows:
CONFIDENTIAL
(PROPOSAL FOR CITY OIL FIELD MANAGEMENT)
Proposals will become a part of the official files of the City of Newport Beach and will
not be returned. Late or incomplete proposals will not be considered.
IX. INSTRUCTIONS AND CONDITIONS
See Attachment A.
X. DESCRIPTION OF PROJECT AND INTENT (Scope of Work)
See Attachment B.
XI. DELIVERABLES
The Contractor is responsible for the delivery of the Statement of Qualifications and
Proposal in the format and content explained in Attachment A, in keeping with the
schedule described in subsection IV.
XII. ATTACHMENTS
Attachment A: Instructions and Conditions
M
Attachment B: Description of Project Intent (Scope of Work) 12
Attachment C: Map XX
Attachment D: Statement of Compliance XX
Attachment E: Draft Agreement XX
Request for Qualifications/Proposals Page 4
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ATTACHMENT A:
INSTRUCTIONS AND CONDITIONS
I. STATEMENT OF QUALIFICATIONS
A. Provide a cover letter with the firm's name, address, phone/fax numbers,
email address and principal contact;
B. Provide a description of the services your firm provides;
C. Provide a local staffing list, including names and positions;
D. Provide advance notice requirements; i.e. the ability of your firm to provide
service on short notice;
E. Provide the resumes of key personnel;
F. Provide the list of public agency and/or private company work performed in
the last five, ten and fifteen years;
G. Provide job specific references, including specific contact names and phone
numbers; and
H. Provide a Fee Schedule for 2009 -2010.
The respondent must include all of the information requested above to be considered
responsive.
II. PROPOSAL REQUIREMENTS
Proposers are encouraged to submit proposals that exceed the minimum specifications
stated herein:
The proposal must contain: (1) a Technical section and (2) a not -to- exceed Time -Cost
section.
A. Technical Proposal
In the Technical section, the respondent should include schedules showing daily,
weekly, biweekly, monthly, bimonthly, quarterly, semi - annual and annual work
schedules, projected required personnel, and labor hours allocation. Most duties and
responsibilities are shown on Attachment 1, Scope of Work, however this list is not all -
inclusive and respondents should add any tasks, duties and /or responsibilities they
consider essential and /or valuable.
Request for Quallfications/Proposals Page 5
B. Time -Cost
0
In the Time -Cost section, the respondent must provide an estimate of the time and
costs that will be required to complete the project. This is a not -to- exceed cost and
should include an allowance for emergency services assistance.
C. Contract
A draft contract has been provided in Attachment E. Respondent shall thoroughly
review the contract. Within two weeks of award of contract, respondent must provide
evidence of insurance, complete with riders and additional insured, along with evidence
of having obtained a City of Newport Beach business license, or contract will be
nullified.
III. SOQ/RFP FORMAT
Contractor must submit one (1) original and two (2) complete copies of the statement of
qualifications and proposal (copies must be marked "COPY ").
The response must contain a statement of qualifications and a concise narrative which
addresses, in the order presented, the evaluation criteria set forth in this solicitation.
The narrative response shall not exceed twenty (20) pages in length, exclusive of
appendix, cover page, letter of transmittal, and table of contents.
Proposals should be organized according to the following outline:
A. Letter of Transmittal
A letter of transmittal shall include the following:
1. The proposer's name and address;
2. Statement that indicates the proposal is valid for at least 90 days from
the proposal submission deadline;
3. Statement that indicates the proposer's willingness to perform the
services described in this SOQ /RFP;
4. Description of experience with similar projects and discuss firm's ability
to perform work. This should include a statement of experience
covering the firm's background and that of the sub - consultants
selected;
5. A statement that the project team and all other necessary resources
which are required to perform the services described in this RFP will
be made available by your organization over the life of the anticipated
Request for Qualifications/Proposals Page 6
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contract and any time limitations that may exist in being able to provide
them within 24 hours;
6. Statement that the signatory has authority to bind the proposer; and
7. Signature of authorized individual(s).
B. Time -Cost
Provide an estimate of the time and cost for this consulting engagement that includes
but is not limited to, incidental costs, travel, interview, and data gathering costs,
analysis, reports, and meetings.
C. Client References
Respondents shall include the name, address and telephone number of all clients, for
whom services similar to those described in this RFP, have been performed.
References should be relevant to the personnel described in the Statement of
Qualifications. Please provide a brief description of services provided with each
reference, as well as the name(s) of team members that provided the service.
The Consultant shall submit a list of all contracts that the Consultant has had with the
City of Newport Beach from January 2004 through March 2009. The list shall include:
short description of contract scope, the award date, date completed, and contract value.
If the Consultant has had no contract with the City since January 2004, the Consultant
shall so state.
IV. SCHEDULE
The selection of a firm for award of the contract will be by City staff who will evaluate the
responses to this solicitation. Responsive firms will be ranked numerically. The
recommendation of the top firm will be based on the results of reference checks,
qualifications of the firm and scope of service provided. A final contract will be
submitted to the City Council for approval and award.
The selection process for this RFP will be a qualifications based selection process
where price is considered, but is not a significant evaluation criterion. The top ranked
firm will be selected for contract negotiations and changes to the Cost -Time proposal
may be made. If contract negotiations fail to result in an agreement between proposer
and the City, negotiations will be terminated with selected proposer and second
proposer engaged in negotiations.
Note: The City reserves the right to negotiate with the top selected firms, if needed.
Request for Qualifications/Proposals Page 7
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V. RFP REVIEW CRITERIA
A review committee of evaluators will review responsive proposals based on the
following weighted scheme:
Firm Qualifications and Experience 35%
Management Plan 30%
Proposed Project Team 25%
Workload and Resources 10%
Total 100%
A. Finn Qualifications and Experience: Weight 35%
Provide detailed information on at least one (1) project of similar scope to the services
requested.
1. Description of your successes in providing management services for oil
facilities similar in size and nature.
2. Discussion of other .projects that your firm has completed that you
believe would qualify your firm for this project.
3. Explain how your firm is prepared to address the unique environmental
issues related to oil field operation in Newport Beach.
4. Description of why your firm may be particularly qualified to be
selected for this project.
5. Provision of two (2) references for each project submitted
B. Management Plan: Weight 30%
1. Discussion of your proposed management plan for this project.
Provide a table or chart that shows organizational structure, chain of
supervision, decision authority, and communications.
2. Provide work schedules for daily, weekly, bi- weekly, monthly,
bimonthly, quarterly, semi - annual and annual work tasks.
3. Provide a quality assurance plan for this project.
4. Discussion of the philosophical approach to the project taken by your
firm. The following are of particular interest.
a. Purpose of the consulting relationship;
Request for Qualifications/proposals Page 8
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b. Approach to meeting client objectives;
c. Description of your firm's approach to the project; and at a
summary level, the steps seen as an integral part of successfully
managing the oil field; and
d. Description of the roles of the team members and your
communication strategy with both the client and subconsultants (if
any).
C. Proposed Project Team: Weight 25%
1. Provision of the professional qualifications and experiences of the
proposed project team members. Discussion of your demonstrated
expertise in working as a team on recent projects.
2. A list of at least three (3) references (contact persons and
telephone numbers) for each person proposed.
D. Workload and Resources: Weight 10%
1. Discussion of both current and potential projects the project team is
contemplating as well as the current and potential time
commitments of your proposed project team.
E. Interviews
Selected proposers may be requested to interview with the evaluation committee.
Proposers will be notified in writing of the interview requirements, date, time, location,
and amount of time allowed for an interview /presentation and question and answer
period.
VI. ADMINISTRATIVE INFORMATION
A. Contact Person: Any information required or questions regarding this
RFP should be addressed to the project manager:
Mr. Ed Burt, Utilities Operations Manager
Utilities Department
City of Newport Beach
P.O. Box 1768
Newport Beach, CA 92658 -8915
Ph: (949) 718 -3432
Fax: (949) 646 -5204
E -mail: eburt0citv.newoort- beach.ca.us
Request for Qualifications/proposals Page 9
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B. Deadline for Receipt of Proposals: Proposals may be mailed or hand
delivered, as long as three (3) copies are physically received by the City
no later than 3:00 p.m., Friday, June 5, 2009. Faxed proposals are not
acceptable. Proposals received after the above proposal submission
deadline will not be considered and will be returned.
C. Proposers Review and Substantive Questions: Proposers should
carefully review this RFP for errors, questionable or objectionable
materials, and items requiring clarification. Proposers shall put these
comments and /or questions in writing and submit them to the contact
person noted above. Please submit questions at least five (5) days before
the due date of proposals. This will allow time for an addendum to the
RFP to be issued, if required, to all recipients of the initial RFP.
D. Addendum to the RFP: The City reserves the right to issue written
addenda to revise or clarify the RFP, respond to questions, and /or extend
or shorten the due date of proposals.
E. Cancellation of the RFP: The City retains the right to cancel the RFP
process if it is in the City's best interest. The City shall not be responsible
for costs incurred by proposers for proposal preparation.
F. Proposal Withdrawal and Correction: A proposal may be corrected or
withdrawn by a written request received prior to the deadline for receipt of
proposals.
G. Retention of Proposals: All proposals and other material submitted
become City property and may be returned only at City's option.
H. Cost of Proposal Preparation: Any and all costs incurred by proposers
in preparing and submitting a proposal are the proposer's responsibility
and shall not be charged to the City or reflected as an expense of the
resulting contract.
1. Delivery of Proposals: The City assumes no responsibility or liability for
the transmission, delay, or delivery of proposals by either public or private
carriers.
J. Media Announcements: Any and all media announcements pertaining to
this RFP require City's prior written approval.
K. Binding Contract: This RFP does not obligate the City or the selected
proposer until a contract is signed and approved by all parties.
Request for Qualifrcations/Proposals Page 10
• •
Attachment B:
Description of Project Intent
SCOPE OF WORK
Management Tasks
A. Perform all work necessary to manage, operate, produce, protect and maintain
the City owned tideland wells, tank farm, pipelines and related oil production
facilities in accordance with good oil field practice.
B. Respond to all emergencies and provide for personnel to safely and continuously
operate the oil facilities 24 hours a day, 7 days a week.
C. Provide qualified, licensed and available staff to complete the Scope of Work
D. Provide the City with detailed recommendations, estimates and technical advice
to maintain and improve production, maintenance and security for the oil
facilities.
E. Recommend, schedule, coordinate and inspect the work of all oil field service
contractors.
F. Keep accurate, daily records of all production, treatment of oil, cut and
temperature of oil, deliveries, shipments and field testing; and immediately make
available to the City upon request.
G. Schedule, supervise and coordinate the transfer of all oil and gas sold and
properly gauge and measure the quantity of oil and gas produced, saved and
shipped. Current oil production is approximately 85 -100 bbl oil per day; current
water production is approximately 1,100 bbl per day.
H. Keep detailed records and submit signed invoices for all materials, equipment
and services that will be reimbursed by the City.
I. Perform individual well tests at least every six months, indicating rate of
production, quantity of oil, and water produced.
J. Furnish all tools required for normal operations.
K. Examples of duties include, but are not limited to the following:
Request for Qualifications/Proposals Page 11
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Operations Tasks
1. Take & record tank gauge readings daily
2. Plan tank management/shipping arrangements and prepare crude for shipping
3. Batch treat wells (approximately 40 treatments per week) for mineral buildup and
saltwater corrosion
4. Perform production well tests to determine water /oil ratios for each well
5. Program and maintain pump off controllers
6. Manage the water treatment system including, but not limited to:
a. Order chemicals
b. Maintain chemical rates
c. Fill day pots
d. Keep chemical pumps pumping
e. Maintain chemical lines and fittings
f. Maintain the Wemco
g. Change filter bags when necessary
h. Skim the skim tank daily
7. Maintain all daily records including, but not limited to:
a. Gage records
b. Chemical usage
c. Pump off controller daily runs times
d. Injection well rates and volumes
8. Manage water injection system
9. Manage natural gas system and vapor recovery system
10. Check wells and tank farm a minimum of three times a day
11. Generate spreadsheet on a monthly basis that tracks production curve and
depletion rate
Supervision and Related Issues
1. Supervise all production rig (repair) work including, but not limited to:
a. Tubing, rod and pump repair
b. Casing and liner repair
c. Inner liner installation
d. Well packer setting
e. Cementing
f. Fishing
2. Supervise all drilling rig work
3. Supervise all construction work
4. Prepare for and attend all meetings related to, but not limited to:
a. Wells
b. Tank farm
c. Pipelines
d. Natural gas
i. Hoag hospital
ii. Cogeneration
Request for Qualifications/Proposals Page 12
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e. Bitter Point sewage lift station (County Sanitation District of Orange
County)
f. Annual AQMD inspections
g. DOGG (Department of Oil, Gas and Geothermal Resources) inspections
h. Fire Department inspections
5. DOGG permitting and reporting including, but not limited to:
a. Permit to drill new well
b. Permit to redrill well
c. Permit to abandon well
d. Permit to alter casing
Design and Engineering Duties
1. Tank farm alteration including, but not limited to:
a. Crude oil system
b. Water injection system
i. Wemco
Pump sizing
Pipe sizing
c. Natural gas system
i. Gas sales
1. Chart changing
2. Maintain gas odorant
ii. Cogeneration
d. Vapor recovery system
2. Design pump sizes and rod strings
3. Design all electrical loads
a. Motor sizes
b. Disconnect sizes
c. Starter sizes
d. Wire sizes
4. Design and engineer any new wells including, but not limited to:
a. Casing design
b. Liner size
c. Wellhead design
d. Pumping unit size
Request for QualifrcationslProposals Page 13
•
Attachment D:
Statement of Compliance
Each proposal must be accompanied by a signed Statement of Compliance. The
Contractor must sign one of the declarations stated below.
I. The person signing below declares that the proposal submitted by
(Name of Firm) Smcg,naA ni l CA to perform Management and
Operations Services forte City's Oil Well Fields as described in the SOQIRFP
dated u 2009 was prepared in strict compliance with the instructions,
conditions, and terms of the SOO, RFP, the Scope of Work, and Draft Agreement.
S —
Signature
rinted Name and Title
Date
11. By signing below, the Contractor states that the proposal submitted by
(Name of Firm) has been
prepared in consideration of and with exception to some of the terms of
the RFP, Scope of Work, and Draft Agreement The Contractor is
advised that exceptions and/or a suggested change to any of the terms
of the RFP, the Scope of Work, or Draft Agreement must be submitted in
writing as an attachment to the proposal submittal. By signing below,
the Contractor declares that the proposal includes a statement that
identifies each item to which the Contractor is taking exception or is
recommending change, includes the suggested rewording of the
contractual obligations or suggested change to the RFP, identifies the
reasons for submitting the proposed exception or change, as well as,
any impact the change or exception may have on contract costs,
scheduling, or other considerations. The City reserves the right to
reject any declarations that are not accompanied with the required
documentation as described above.
Signature Date
Printed Name and Title
Request for QuaiificationsiProposals Page 16
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Attachment E:
Draft Contract
"Intentionally Omitted"
is
Request for Qualifications/Proposals Page 17
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Fee Schedule
Sampson Oil Company would like to present the following fee schedule
to manage and operate the City of Newport Beach's ail field. This
'I schedule is based on a 365 day work year. It also includes what it will
cost to increase Sampson Oil Company's insurance to satisfy the City's
new insurance requirement. This schedule also includes the additional
work requested by the City (See Addendum on page 23).
• Pumper $48,193
Design and Engineering 3,301
i
• Rig Supervision 14,854
{
j• Construction Supervision 14,854
I
• Addendum 9,612
• Special Insurance Charges 13,586
Total Annual Fee $194,409
i
Total Monthly Fee $8,700
12
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Addendum
Sampson Oil Company will provide labor to perfo
and repairs for the City of Newport Beach's 16 oil
facility. The maintenance and repairs will include,
the following:
Scope of Work
Maintenance
• Inspect oil levels (weekly)
Air balance pumping units
Air compressors
Vapor recovery compressor
Injection pump
• Grease
rm light maintenance
wells and production
but not limited to,
Wemco (weekly)
Plug valves (semi- annual)
• Check high level switches on all tanks (monthly)
• Replace odorant (when needed)
• Check pressure / vacuum relief valves on all tanks (monthly)
• Maintain injection pump: replace packing when needed, add oil
when needed, check belts and grease
• Clean Wemco (when needed)
• Maintain vapor recovery compressor
• Maintain filter system
• Maintain all air compressors
• Perform minor pipefitting
Repairs
• Minor pipe fitting jobs
• Repair minor leaks
• Repair or replace rod rotator cables
• Replace belts on small equipment
23