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Resolution No. 098661 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 lerm 18 19 20 21 22 23 24 25 26 27 28 P�ESOLUTION NO. 9866 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A STANDARD MASTER AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN THE CITY OF VERNON AND CH2M HILL, INC. WHEREAS, the City of Vernon (the "City") owns and operates a municipal electric system which provides the inhabitants of the City with electric power; and WHEREAS, the Light & Power Department of the City desires to retain the services of CH2M Hill, Inc. ("CH2M Hill ") to provide general related services, work schedule and construction management services in connection with power and energy projects on a task basis; and WHEREAS, the City and CM2M Hill desire to enter into a master agreement setting forth the terms and conditions under which CHM2 Hill shall perform the services requested by the Light & Power Department from time -to -time under a task order mechanism for a period of five (5) years; and WHEREAS, the City Council of the City has determined that, pursuant to the provisions of subsection (a) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to enter into an agreement with CH2M Hill to enhance services provided to the Vernon community. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE: CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Standard Master Agreement for Professional Services with CH2M Hill, in substantially the same form as the copy which is attached hereto as Exhibit A and incorporated by reference. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for, and on behalf of, the City of Vernon and the City Clerk or Deputy City Clerk is hereby authorized to attest thereto. SECTION 4: The City Council of the City hereby authorizes the City Administrator, or his designee, to make whatever non - substantive, administrative and/or text changes, upon advice of counsel-, to the Agreement. SECTION 5: The City Council of the City of Vernon hereby directs the City Clerk, or her designee, to send one fully executed Agreement to CH2M Hill. SECTION 6: The City Council of the City of Vernon hereby authorizes the City Administrator, or his designee, to execute the task orders and any and all documents as shall be necessary or required to implement and carry out the Agreement and to perform such other acts and deeds as may be deemed necessary or advisable to effect the purposes of Agreement and the transactions therein authorized. - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1� 18 19 20 21 22 23 24 25 26 27 28 SECTION 7: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 23 rd day of February, 2009. ATTEST: MANOELA GIRON,-t-fit� �lerk Name: Leonis C. Malburg Title: Mayor - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ss COUNTY OF LOS ANGELES I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9866, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Monday, February 23, 2009, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. (SEAL) MANUELA GIRO , City Clerk - 4 - 10 a 0 1 An 4114 0 1 �j 01 v -I ail MASTER SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND CH2M HILL TABLE OF CONTENTS C112M HILL STANDARD MASTER AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1. SERVICES GENERALLY I ARTICLE 2. COMPENSATION I ARTICLE 3. TERMS OF PAYMENT 1 3.1 Invoices 1 3.2 Time of Payment 1 3.3 Delay in Payment I ARTICLE 4. OBLIGATIONS OF CH2M HILL 2 4.1 Independent Contractor; Subcontracts 4.2 Standard of Care 4.3 Subsurface Investigations 4.4 CH2M HILL's Personnel at Construction Site 4.5 Opinions of Cost, Financial Considerations, and Schedules 4.6 Construction Progress Payments 4.7 Record Drawings 4.8 Access to C112M HILL's Accounting Records 4.9 CH2M HILL's Insurance ARTICLE 5. OBLIGATIONS OF CLIENT --------------- 5.1 Client -Furnished Data 5.2 Access to Facilities and Property 5.3 Advertisements, Permits, and Access 5.4 Timely Review 5.5 Prompt Notice 5.6 Asbestos or Hazardous Substances 5.7 Contractor Indemnification and Claims 5.8 CLIENT's Insurance 5.9 Litigation Assistance 5.10 Changes ARTICLE 6. GENERAL LEGAL PROVISIONS .......................................................... 6.1 Authorization to Proceed 6.2 Re -use of Project Documents 6.3 Delay , 6.4 Limitations of Liability 6.5 Termination 6.6 Suspension, Delay, or Interruption of Work 6.7 No Third -Party Beneficiaries 6.8 Indemnification 6.9 Assignment 6.10 Waiver 6.11 Jurisdiction 6.12 Severability and Survival 6.13 Materials and Samples 6.14 CH2M HILL's Deliverables 6.15 Dispute Resolution ARTICLE 7. ATTACHMENTS, SCHEDULES, AND SIGNATURES ......................... ATTACHMENTA .......................................... _._ ------------- I . Construction Obligations 2. Safety 3. Warranties and Completion 4. Unknown Conditions 5. Substantial Completion 7. Site 8. Substantial Completion, Acceptance, and Final Payment 2 2 2 2 3 .3 3 3 3 3 4 4 4 4 4 ........... 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 .......... 6 ..... A-1 A-1 A-1 A-1 A-1 A-1 A-2 A-2 INC MSA TABLE OF CONTENTS VERSION 2-03 CH2MHILL STANDARD MASTER AGREEMENT FOR PROFESSIONAL SERVICES This Agreement, effective this 23rd day of February 20 0 9 for a period of 5 years, is between: CLIENT: City of Vernon 4305 S. Santa Fe Ave Vernon, CA 90058 and C112M HILL, INC., ("CH2M HILL") 9191 S. Jamaica Street P. 0. Box 22508 Englewood, Colorado 80112 Denver, CO 80222-0508 for services to be performed on a Task Order basis with respect to: Environmental and engineering support services in as requested by the City of Vernon ARTICLE 1. SERVICES GENERALLY CH2M HILL shall furnish such engineering and related services, construction management, and subject to the provisions of Paragraph 6.9. 1, perform such construction work as CLIENT may request from time to time ("Services"). The particular project ("Project"), specific Services, work schedule, and cost or estimated cost will be mutually agreed and set forth in a Task Order issued by CLIENT under this Agreement. Each Task Order will specifically refer to and incorporate this Agreement by reference. The provisions of this Agreement and of Attachment A shall apply to Task Orders requiring construction. ARTICLE 2. COMPENSATION For performance of the Services, CLIENT will compensate CH2M HILL pursuant to the Compensation Schedule identified in Article 7, if any, and to the pertinent Task Order. ARTICLE 3. TERMS OF PAYMENT 3.1 Invoices CH2M HILL will submit invoices for each Task Order to CLIENT each month covering Services completed to date and, and as applicable, for materials and equipment delivered and stored on -site or off -site. Each invoice will be prepared in CH2M HILL's standard form and supported by documentation according to CH2M HILL's standard practice. Within 10 days of receipt of the invoice, CLIENT shall give detailed, written notice of any sums which it may reasonably dispute or contest. If the parties are unable to resolve the matter within 15 days, only that portion so reasonably contested may be withheld from payment. 3.2 Time of Payment Invoices are due and payable within 30 days after receipt by CLIENT. 3.3 Delay in Payment If CLIENT fails to pay CH2M HILL within 30 calendar days after receipt of any invoice, CH2M HILL will be entitled any or all to the following: 3.3.1 Interest CLIENT will be charged interest at the rate of 1- 1/2% per month, or that permitted by law if lesser, on all past -due amounts starting 30 calendar days after receipt of invoice. Payments will first be credited to interest and then to principal. 3.3.2 Suspension of Work If CLIENT fails to make payment in full within 30 calendar days of the date due for any undisputed billing, CH2M HILL may, after giving 7 calendar days' written notice to CLIENT, suspend services under this Agreement until paid in full, including interest. In the event of suspension of services, CH2M HILL will have no liability to CLIENT for delays or damages caused by CLIENT because of such suspension. CH2M HILL shall be entitled to an adjustment in compensation and the work schedule for the affected Task Order pursuant to Article 6.3. INC MSA VERSION 2-03 ARTICLE 4. OBLIGATIONS OF C112M HILL 4.1 Independent Contractor; Subcontracts 4.1.1 CH2M HILL represents that it is an independent contractor and will perform services pursuant to each Task Order as an independent contractor and not as an agent or employee of CLIENT. 4.1.2 CH2M HILL may retain such other subconsultants or subcontractors as it may deem desirable for proper and timely performance of Services. CH2M HILL shall be responsible for the management of the subcontractors and subconsultants in the performance of their work. 4.2 Standard of Care The standard of care applicable to CH2M HILL's engineering or related services will be the degree of skill and diligence normally employed by professional engineers or consultants performing the same or similar Services at the time said services are performed. CH2M HILL will reperform any engineering or related services not meeting this standard without additional compensation. 4.3 Subsurface Investigations In soils, foundation, groundwater, and other subsurface investigations, the actual characteristics may vary significantly bet�veen successive test points and sample intervals and at locations other than where observations, exploration, and investigations have been made. Because of the inherent uncertainties in subsurface evaluations, changed or unanticipated underground conditions may occur that could affect total Task Order cost and/or execution. These conditions and cost/execution effects are not the responsibility of CH2M HILL. 4.4 CH2M HILL's Personnel at Construction Site 4.4.1 The presence or duties of CH2M HILL's personnel at a construction site, whether as onsite representatives or otherwise, do not make CH2M HILL or CH2M HILL's personnel in any way responsible for those duties that belong to CLIENT and/or the construction contractors or other entities, and do not relieve the construction contractors or any other entity of their obligations, duties, and responsibilities, including, but not limited to, all construction methods, means, techniques, sequences, and procedures necessary for coordinating and completing all portions of the construction work in accordance with the construction contract documents and any health or safety precautions required by such construction work. 4.4.2 CH2M HILL and CH2M HILL's personnel have no authority to exercise any control over any construction contractor or other entity or their employees in connection with their work or any health or safety precautions and have no duty for inspecting, noting, observing, correcting, or reporting on health or safety deficiencies of the construction contractor(s) or other entity or any other persons at the site except CH2M HILL's own personnel. 4.4.3 The presence of CH2M HILL's personnel at a construction site is for the purpose of providing to CLIENT a greater degree of confidence that the completed construction work will conforin generally to the construction documents and that the integrity of the design concept as reflected in the construction documents has been implemented and preserved by the construction contractor(s). CH2M HILL neither guarantees the performance of the construction contractor(s) nor assumes responsibility for construction contractor's failure to perform work in accordance with the construction documents. 4.5 Opinions of Cost, Financial Considerations, and Schedules In providing opinions of cost, financial analyses, economic feasibility projections, and schedules for the Project, CH2M HILL has no control over cost or price of labor and materials; unknown or latent conditions of existing equipment or structures that may affect operation or maintenance costs; competitive bidding procedures and market conditions; time or quality of performance by operating personnel or third parties; and other economic and operational factors that may materially affect the ultimate Project cost or schedule. Therefore, CH2M HILL makes no warranty that CLIENT's actual Project costs, financial aspects, economic feasibility, or schedules will not vary from CH2M HILL's opinions, analyses, projections, or estimates. If CLIENT wishes greater assurance as to any element of Project cost, feasibility, or schedule, CLIENT will employ an independent cost estimator, contractor, or other appropriate advisor. 4.6 Construction Progress Payments Recommendations by CH2M HILL to CLIENT for periodic construction progress payments to the construction contractor(s) will be based on CH2M HILL's knowledge, infori-nation, and belief from selective sampling that the work has progressed to the point indicated. Such recommendations do not represent that continuous or detailed examinations have been made by CH2M HILL to ascertain that the construction contractor(s) have completed the work in exact accordance with the construction documents; that the final work will be acceptable in all respects; that CH2M HILL has made an examination to ascertain how or for what purpose the construction contractor(s) have used the moneys paid; that title to any of the work, materials, or equipment has passed to CLIENT free and clear of liens, claims, security Imc MSA VERSION 2-03 interests, or encumbrances; or that there are not other matters at issue between CLIENT and the construction contractors that affect the amount that should be paid. 4.7 Record Drawings Record drawings, if required, will be prepared, in part, on the basis of information compiled and furnished by others, and may not always represent the exact location, type of various components, or exact manner in which the Project was finally constructed. CH2M HILL is not responsib le for any errors or omissions in the information from others that is incorporated into the record drawings. 4.8 Access to CH2M HILL's Accounting Records CH2M HILL will maintain accounting records, in accordance with generally accepted accounting principles. Records relating to a Task Order will be available to CLIENT during CH2M HILL's normal business hours for a period of I year after CH2M HILL's final invoice pursuant to that Task Order for examination to the extent required to verify the direct costs (excluding established or standard allowances and rates) incurred hereunder. Only audit cost -reimbursable items will be subject to audit. 4.9 CH2M HILL's Insurance 4.9.1 C112M HILL will maintain throughout this Agreement the following insurance: (a) Worker's compensation employer's liability insurance as required by the state where the work is performed and Employer's Liability with a limit of $ 1,000,000. (b) Comprehensive automobile and vehicle liability insurance covering claims for injuries to members of the public and/or damages to property of others arising from use of motor vehicles, including onsite and offsite operations, and owned, nonowned, or hired vehicles, with $ 1,000,000 combined single limits. (c) Commercial general liability insurance covering claims for injuries to members of the public or damage to property of others arising out of any covered negligent act or omission of CH2M HILL or of any of its employees, agents, or subcontractors, with $1,000,000 per occurrence and in the aggregate. (d) When furnishing engineering or engineering related services, professional liability insurance of $1,000,000 per occurrence and in the aggregate. (e) When performing construction, Builder's Risk All Risk as described in Paragraph 5.8.3. 4.9.2 CLIENT will be named as an additional insured with respect to CH2M HILL's liabilities hereunder in insurance coverages identified in items (b), (c) and (e) and CH2M HILL waives subrogation against CLIENT as to said policies. All insurance certificates will provide that the insurance carrier will give CLIENT 30 days' notice of cancellation of the policies. ARTICLE 5. OBLIGATIONS OF CLIENT 5.1 Client -Furnished Data CLIENT will provide to CH2M HILL all data in CLIENT's possession relating to CH2M HILL's Services. CH2M HILL will reasonably rely upon the accuracy, timeliness, and completeness of the information provided by CLIENT. 5.2 Access to Facilities and Property CLIENT will make its facilities accessible to CH2M HILL as required for CH2M HILL's performance of its services and will provide labor and safety equipment as required by CH2M HILL for such access. CLIENT will perform, at no cost to CH2M HILL, such tests of equipment, machinery, pipelines, and other components of CLIENT's facilities as may be required in connection with CH2M HILL's services. I 5.3 Advertisements, Permits, and Access Unless otherwise agreed to in the Task Order, CLIENT will obtain, arrange, and pay for all advertisements for bids; permits and licenses required by local, state, or federal authorities; and land, casements, rights -of -way, and access necessary for CH2M HILL's services or Project construction. 5.4 Timely Review CLIENT will examine CH2M HILL's studies, reports, sketches, drawings, specifications, proposals, and other documents; obtain advice of an attorney, insurance counselor, accountant, auditor, bond and financial advisors, and other consultants as CLIENT deems appropriate; and render in writing decisions required by CLIENT in a timely manner. ING MSA VERsioN 2-03 5.5 Prompt Notice CLIENT will give prompt written notice to CH2M HILL whenever CLIENT observes or becomes aware of any development that affects the scope or timing of CH2M HILL's Services, or of any defect in the work of CH2M HILL or construction contractors. 5.6 Asbestos or Hazardous Substances 5.6.1 If asbestos or hazardous substances in any form are encountered or suspected, CH2M HILL will stop its own work in the affected portions of the Project to permit testing and evaluation. 5.6.2 If asbestos is suspected, CH2M HILL will, if requested, manage the asbestos remediation activities,using a qualified subcontractor at an additional fee and contract terms to be negotiated. 5.6.3 If hazardous substances other than asbestos are suspected, CH2M HILL will, if requested, conduct tests to determine the extent of the problem and will perforrn the necessary studies and recommend the necessary remedial measures at an additional fee and contract terms to be negotiated. 5.6.4 Client recognizes that CH2M HILL assumes no risk and/or liability for a waste or hazardous waste site originated by other than CH2M HILL. 5.7 Contractor Indemnification and Claims 5.7.1' CLIENT agrees to include the following in all construction contracts with contractors not affiliated with CH2M HILL: (a) the provisions of Article 4.4, CH2M HILL's Personnel at Construction Site,: (b) the provisions of Article 5.7.3 regarding direct actions against CH2M HILL; (c) and provisions providing contractor indemnification of CLIENT and CH2M HILL for contractor's negligence. 5.7.2 CLIENT shall require construction contractor(s) to name CLIENT and CH2M HILL as additional insureds on the contractor's general liability insurance policy. 5.7.3 CLIENT agrees to include the following clause in all contracts with equipment or materials suppliers: Contractors, subcontractors, and equipment and material suppliers on the Project, or their sureties, shall maintain no direct action against CH2M HILL, CH2M HILL's officers, employees, affiliated corporations, and subcontractors for -any claim arising out of, in connection with, or resulting from the CH2M HILL services performed. CLIENT will be the only beneficiary of any undertaking by CH2M HILL." 5.8 CLIENT's Insurance 5.8.1 CLIENT will maintain property insurance on all pre-existing physical facilities associated in any way with the Project. 5.8.2 CLIENT will provide for a waiver of subrogation as to all Client -carried property damage insurance, during construction and thereafter, in favor of CH2M HILL, CH2M HILL's officers, employees, affiliates, and subcontractors. 5.8.3 CLIENT will provide (or have the construction contractor(s) provide) a Builders Risk All Risk insurance policy for the full replacement value of all Project work including the value of all onsite CLIENT-fumisbed equipment and/or materials associated with CH2M HILL's services. Such policy will include coverage for loss due to defects in materials and workmanship and errors in design, and will provide a waiver of subrogation as to CH2M HILL and the construction contractor(s) (or CLIENT), and their respective officers, employees, agents, affiliates, and subcontractors. CLIENT will provide CH2M HILL a copy of such policy. 5.9 Litigation Assistance Article 1, Services Generally, does not include costs of CH2M HILL for required or requested assistance to support, prepare, document, bring, defend, or assist in litigation undertaken or defended by CLIENT. All such Services required or requested of CH2M HILL by CLIENT, except for suits or claims between the parties to this Agreement, will be reimbursed as mutually agreed. 5.10 Changes CLIENT may make or approve changes within the scope of Services under a Task Order. If such changes affect CH2M HILL's cost of or time for perfornance of the Services, an equitable adjustment will be made through an amendment to the affected Task Order. INC MSA VERSION 2-03 ARTICLE 6. GENERAL LEGAL PROVISIONS 6.1 Authorization to Proceed Execution of the Task Order by CLIENT will be authorization for CH2M HILL to proceed with the Services, unless otherwise provided in the Task Order. 6.2 Reuse of Project Documents All reports, drawings, specifications, documents, and other deliverables of CH2M HILL, whether in bard copy or in electronic form, are instruments of service for the pertinent Task Order, whether the Task Order is completed or not. CLIENT agrees to indemnify CH2M HILL and CH2M HILL's officers, employees, subcontractors, and affiliated corporations from all claims, damages, losses, and costs, including, but not limited to, litigation expenses and attorney's fees arising out of or related to the unauthorized reuse, change or alteration of these Task Order documents. 6.3 Delay In the event CH2M HILL is delayed in performance of Services by any act or neglect of CLIENT or anyone for whom CLIENT is responsible or by Acts of God, strikes,'/lockouts, accidents, or other events beyond the control of C112M HILL, then CH2M HIILL's compensation and the work schedule for the affected Task Order shall be equitably adjusted. In the event delays to the Task Order work is encountered for any reason, the parties agree to undertake reasonable steps to mitigate the effect of such delays. 6.4 Limitations of Liability 6.4.1 To the maximum extent permitted by law, C112M HILL's liability for CLIENT's damages under any Task Order will not, in the aggregate, exceed the Task Order value, whether such liability arises out of breach of contract or warranty, tort including negligence, strict or statutory liability, or any other cause of action. 6.4.2 To the maximum extent permitted by law, CH2M HILL and CH2M HILL's affiliated corporations, officers, employees, and subcontractors shall not be liable for CLIENT's special, indirect, or consequential damages, whether such damages arise out of breach of contract or warranty, tort including negligence, strict or statutory liability, or any other cause of action. In order to protect CH2M HILL against indirect liability or third - party proceedings, CLIENT will indemnify CH2M HILL for any such damages. 6.4.3 This article takes precedence over any conflicting article of this Agreement or any document incorporated into it or referenced by it. 6.5 Termination 6.5.1 This Agreement may be terminated for convenience on 30 calendar days'written notice, or for cause if either party fails substantially to perform through no fault of the other and does not commence correction of such nonperformance within 5 calendar days of written notice and diligently complete the correction thereafter. 6.5.2 On termination, CH2M HILL will be paid for all authorized Services performed up to the termination date plus termination expenses, such as, but not limited to, reassignment of personnel, subcontract termination costs, and related closeout costs. 6.6 Suspension, Delay, or Interruption of Work CLIENT may suspend, delay, or interrupt the Services of CH2M HILL under a Task Order for the convenience of CLIENT. In such event, CH2M HILL's compensation and the work schedule for the affected Task Order shall be equitably adjusted. 6.7 No Third -Party Beneficiaries This Agreement gives no rights or benefits to anyone other than CLIENT and CH2M HILL and has no third -party beneficiaries. 6.8 Indemnification 6.8.1 CH2M HILL agrees to indemnify CLIENT for any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage or bodily injury, including death, to the proportionate extent caused by the negligence or willful misconduct of C112M HILL, CH2M HILL's employees, affiliated corporations, and subcontractors in connection with Services performed under Task Order issued hereunder. 6.8.2 Client agrees to indemnify CH2M HILL from any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage or bodily, injury, including death, to the proportionate extent caused by the negligence or willful misconduct of CLIENT, or its employees or contractors in connection with Task Orders issued hereunder. INC MSA VERSION 2-03 6.9 Assignment 6.9.1 CH2M HILL represents that it performs construction only to the extent to which the construction is ancillary to other work under a Task Order, and that an affiliated - company is authorized and qualified to perform substantial construction. When, in CH2M HILL's sole opinion, work -under a Task Order constitutes substantial construction, CH2M HILL will assign the Task Order and all of its rights and obligations thereunder to its affiliate. CLIENT shall accept such assignment and release CH2M HILL from any obligation whatsoever with respect to that Task Order. 6.9.2 Except as provided in Paragraph 6.9. 1, this Agreement and Task Orders issued pursuant to it are bilateral personal services agreements. Neither party shall have the power to or will assign any of the duties or rights or any claim arising out of or related to this Agreement or Task Order issued pursuant to it, whether arising in tort, contract or otherwise, without the written consent of the other party. Any unauthorized assignment is void and unenforceable. These conditions and the entire Agreement are binding on the heirs, successors, and assigns of the parties hereto. 6.10 Waiver CLIENT waives all claims against CH2M HILL, including those for latent defects, that are not brought within 2 years of substantial completion of the facility designed or final payment to CH2M HILL, whichever is earlier or, in the event of a Task Order requiring substantial construction, within two years after expiration of the warranty period. 6.11 Jurisdiction The substantive law of the state of the Task Order Services shall govern the validity of this Agreement, its interpretation and performance, and any other claims related to it. 6.12 Severability and Survival If any of the provisions of this Agreement are held for any reason to be invalid, illegal, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. Limitations of liability, indemnities, and other express representations shall survive termination of this Agreement for any cause. 6.13 Materials and Samples Any items, substances, materials, or samples removed from the Project site for testing, analysis, or other evaluation will be returned to the Project site within 60 calendar days of Task Order close-out unless agreed to otherwise. CLIENT recognizes and agrees that CH2M HILL is acting as a bailee and at no time assumes title to said items, substances, materials, or samples. 6.14 C112M HILL's Deliverables CH2M HILL's deliverables, including record drawings, are limited to the sealed and signed hard copies. Computer - generated drawing files fumished by CH2M HILL are for CLIENT or others' convenience. Any conclusions or information derived or obtained from these files will be at user's sole risk. 6.15 Dispute Resolution The parties will use their best efforts to resolve amicably any dispute, including use of alternative dispute resolution options. ARTICLE 7. ATTACHMENTS, SCHEDULES, AND SIGNATURES This Agreement, including its attachments and schedules, constitutes the entire Agreement, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. Attachments and schedules on the date of contracting: Attachment A Construction Supplement IN WITNESS WHEREOF, the parties execute below: ForCLIENT: City of Vernon 0 Mayor Mayor Pro—Tem ING MSA VERSION 2-03 ATTEST: By: Manuela Giron, City Clerk APPROVED AS TO FORM: Jeff A. Harrison, City Attorney Name For CH2M HILL INC.: By: Name Name Title INC MSA VERSION 2-03 ATTACHMENT A CONSTRUCTION SUPPLEMENT The parties agree that the following terms and conditions shall supplement the terms and conditions of the Agreement when a Task Order requires CH2M HILL to perform construction work. In the event of ambiguity or conflict with the terms and conditions of the Agreement, these provisions shall govern. 1. Construction Obligations CH2M HILL shall furnish all supervision and labor, materials, tools, equipment, unloading, taxes, insurance and other things necessary to perform and complete the Task Order. 2. Safety CH2M HILL shall take necessary precautions for the safety of its employees on the Project, and shall comply with all applicable provisions of federal, state and municipal safety laws to prevent accidents or injury to persons on, about or adjacent to the site. CH2M HILL, directly or through its Subcontractors, shall erect and properly maintain at all times, as required by the conditions and progress of the Task Order, necessary safeguards for the protection of workers and the public. CH2M HILL, however, shall not be responsible for the elimination or abatement of safety hazards created or otherwise resulting from work at the site carried on by CLIENT or its employees, agents, separate contractors or tenants. CLIENT agrees to cause its employees, agents, separate contractors and tenants to abide by and fully adhere to all applicable provisions of federal, state and municipal safety laws and regulations. The above provision shall not relieve CH2M HILL's subcontractors of their responsibility for the safety of persons or property in the performance of their work, nor for compliance with all applicable provisions of relevant laws. 3. Warranties and Completion CH2M HILL warrants that all materials and equipment furnished under this Agreement and the pertinent Task Order will be new unless otherwise specified, of good quality, in conformance with the Contract Documents, and free from defective workmanship and materials. Warranties shall commence on the date of Substantial Completion of the Task Order or of a designated portion. CH2M HILL agrees to correct all construction performed under this Agreement which proves to be defective in workmanship and materials within a period of one year from the date of Substantial Completion or for such longer periods of time as may be set forth with respect to specific warranties required by the Contract Documents. Those products, equipment, systems or materials incorporated in the Task Order at the direction of or upon the specific request of CLIENT shall be covered exclusively by the warranty of the manufacturer. There are no warranties that extend beyond the description on the face thereof. All other warranties, express or implied, including any warranty of merchantability and any warranty of fitness for a particular purpose are expressly disclaimed. 4. Unknown Conditions If in the performance of the Work CH2M HILL finds latent, concealed or subsurface physical conditions which differ from the conditions CH2M HILL reasonably anticipated, or if physical conditions are materially different from those normally encountered and generally recognized as inherent in the kind of work provided for in this Agreement, then CH2M HILL's compensation and the work schedule of the affected Task Order shall be equitably adjusted by written amendment to the Task Order within a reasonable time after the conditions are first observed. 5. Substantial Completion Unless a date for Substantial Completion is previously agreed, when the drawings and specifications are sufficiently complete, the parties shall establish a date of Substantial Completion and any agreed schedule shall be updated to reflect such a date. CLIENT and CH2M HILL recognize that time is important in the performance of this Agreement and that CLIENT will enjoy substantial benefit if the Task Order is completed by the Substantial Completion date set forth in any agreed schedule. CH2M HILL shall use its best efforts to complete Services pursuant to each Task Order by the Substantial Completion date. Substantial Completion of the Services, or of a designated portion, occurs on the date when construction is sufficiently complete in accordance with the Contract Documents so that CLIENT can occupy or utilize the Project, or a designated portion, for the use for which it is intended. INC MSA -CONSTRUCTION SUPPLEMENT A-1 VERSION 2-03 6. Liens CH2M HILL will promptly pay for all services, labor, material and equipment used or employed in performance of any Task Order and will maintain the Project free and clear of Liens arising from its work. CLIENT will promptly give CH2M HILL a copy of any Notice of Lien or claim received by CLIENT from any subcontractor or supplier engaged by CH2M HILL or any of its subcontractors prior to final payment. As requested, CH2M HILL will furnish certification that all of its obligations on the Project have been satisfied and that all claims and indebtedness have been paid. 7. Site CLIENT will obtain, arrange and secure at its own expense all permits, licenses, approvals, legal or administrative orders, deposits, land, easements, rights -of -way, and access necessary for CH2M HILL to perform the Task Order. CH2M HILL may rely upon the accuracy of soils reports, subsurface investigations, legal limitations and legal descriptions, and any other inforination provided by CLIENT. CLIENT shall furnish such information in its possession as CH2M HILL may request and shall inuriediately transmit to CH2M HILL any new information and any changes in plans resulting from such information. CLIENT shall be responsible for the location of any installation or underground utilities. 8. Substantial Completion, Acceptance, and Final Payment 8(a). Substantial Completion CH2M HILL will notify CLIENT when the construction work is substantially complete. Within 5 business days, CLIENT shall inspect the work and fumish a certificate of acceptance or notify CH2M HILL in writing of any work requiring completion or correction. Upon Substantial Completion, CLIENT shall pay CH2M HILL the unpaid balance of the Task Order price, less a sum equal to CH2M HILL's estimated cost of completing any unfinished items. Each month thereafter, CLIENT shall pay CH2M HILL the amount retained for unfinished items as each item is completed. 8(b). Acceptance and Final Payment Within five business days after receiving -notice from CH2M HILL that the work is completed or corrected, CLIENT will issue a certificate of acceptance. Final payment will be due within 15 days after the certificate of acceptance is issued. CH2M HILL shall be relieved of any further responsibility for the Services under the Task Order except for reperformance pursuant to Paragraph A3 of this Construction Supplement. If CLIENT fails to issue such certificate or notice within the specified time, the Services under the Task Order shall be deemed to be accepted for all purposes hereunder. 8(c). Waiver of Claims Final payment shall constitute a waiver of all claims by Owner except those previously made in writing and identified by Client as unsettled at the time of acceptance and those arising during the warranty period pursuant paragraph A3. Acceptance of final payment shall constitute waiver of all claims by CH2M HILL except those previously made in writing. INC MSA -CONSTRUCTION SUPPLEMENT A-2 VERSION 2-03 TASK ORDER NO. This Task Order is issued pursuant to the Standard Master Agreement for Professional Services dated: which is incorporated herein by this reference, with respect to I ("Project"). Specific Services: Compensation Provisions: Work Schedule: The Authorized Representatives designated below are authorized to act with respect to the Task Order. Communications between the parties shall be between parties and their consultants or subcontractors shall be through the Authorized Representatives: For the Client: For CF12M HILL Name: Name: Address: Address: Telephone: Telephone This Task Order No. I is effective this (date) Accepted for C112M HILL by: Accepted r Client by: Name Name Title Title INC msA TASK ORDER VERSION 2-03 ATTACHMENT ENVIRONMENTAL REMEDIATION SUPPLEMENT Client and CH2M HILL agree that the following provisions supplement the provisions of the Agreement and of Attachment A when a Task Order requires remediation construction. 1.0 Additional Obligations of Client 1.1 Client's Warranties 1.1.1 Title to Wastes; No Violation Client warrants that it holds clear title to all wastes to be treated, stored and/or disposed and is under no legal restraint or order which would prohibit the treatment, storage and/or disposal of such wastes by any transporter or disposal facility. Client further warrants that the Work to be performed by CH2M HILL does not violate any final court order or any final ruling of any governmental agency of which Client has knowledge. 1.1.2 Furnished Data Client represents that it has furnished to CH2M HILL fall and complete information regarding the requirements of the Work including, without limitation, soils reports, subsurface investigations, legal limitations and legal descriptions. CH2M HILL may rely -upon the accuracy of this and any other information provided by Client. Client shall furnish Such information in its possession as CH2M HILL may request and shall immediately transmit to CH2M HILL any new information and any changes in plans resulting from such information. 1.1.3 Rights of Way Client warrants that any right-of-way provided by Client to/from the Site and to/from the most convenient public way is sufficient to bear the weight of all of CH2M HILL's equipment and vehicles reasonably required to -perform the Work. CH2M HILL shall not be responsible for any changes required to be made to any private pavement or accompanying subsurface of any route for its performance of the Work, unless otherwise specifically agreed. The reasonable cost of any repairs to roadways and rights -of -way arising out of the normal wear and tear resulting from CH2M HILL's use thereof by its equipment during the performance of the Work shall be reimbursable under Article 6.3. 1.2 Reporting If Laws/Regulations require Client to report the results of any Work, Client shall be responsible for all such reporting and shall indemnify and hold CH2M HILL harmless from any fines, penalties, assessments or other costs, including reasonable attorney fees, resulting from Client's failure to report. 1.3 Underground Utilities Client shall be responsible for the location of any installation or underground utilities. 1.4 Additional Indemnification Client shall indemnify and hold harmless CH2M HILL, its directors, officers, employees, agents and subcontractors against any and all liabilities, costs, or expenses, including reasonable attorney's fees, for claims, demands and/or causes of action asserted and/or filed by third persons not parties to this Agreement, arising out of or as a result of - The presence of CH2M HILL or its subcontractors on the Site; 2. The completed Work by CH2M HILL, except to the extent that such liabilities, claims, demands, causes of action, costs and expenses are caused by the negligence of CH2M HILL, its directors, officers, agents, employees or subcontractors; ENVIRONMENTAL REMEDIATION SUPPLEMENT TO INC MSA VERSION 2-03 3. Soil, air, surface and ground -water pollution, gas or contamination emanating from the site; 4. Transportation and disposal of waste streams and residue; 5. Any liability arising out of Client's statutory status as generator of the waste streams, which status is expressly retained by Client. 2.0 Safety The following provisions supplement the requirements of Paragraph A2 of Attachment A: 2.1 Disclosure Perfon-nance of the Work may require disclosure pursuant to Laws/Regulations. If CH2M HILL determines that reporting is required, it will give Client notice. Nothing contained in this paragraph shall be construed to impose on C112M HILL any obligation to report the foregoing matters. 2.2 Client's Responsibility All directions by Client shall comply with laws/regulations. If CH2M HILL believes that compliance with any direction by Client would violate any Laws/Regulations, then CH2M HILL shall not be required to comply with it and shall so advise Client. If Client fails to modify its directions within 10 days after CH2M HILL's notice to Client or if Client fails to report to governmental authorities any matter which Client is required by Laws/Regulation to report, then CH2M HILL shall have the right to suspend the Work, which delay shall be attributable to Client, or to terminate the Agreement pursuant to Article 6.5 of the Agreement. 2.3 Other Contractors; Waiver If Client contracts with others for the performance of other work on the site, Client will specify in writing the extent of authority of each contractor. CH2M HILL will not be responsible for procedures or adequacy of health and safety measures of such other contractors. If CH2M HILL observes any employee of any other such contractor engaging in an act or procedure which could result in injury or death or which CH2M HILL believes to violate any applicable Law or Regulation and such condition persists after it is brought to Client's attention, then upon notice to Client, CH2M HILL and its subcontractors shall have the right to cease all work on the Project until the condition is corrected. CH2M HILL will not be liable for any cost or expense resulting from such work stoppage and Client waives, on behalf of itself and other contractors on the site with whom it has contracted, any claim against CH2M HILL with respect to same. 3.0 Changes in Laws If changes in Laws/Regulations not known or foreseeable on the date of receipt of proposals have an effect on the cost or time of performance, the price and time for performance of the Task Order shall be equitably adjusted pursuant to Article 5. 10 of the Agreement. 4.0 Warranty The following sentence replaces the first sentence of Article 4.2 of the Agreement: CH2M HILL will perform the Work in compliance with applicable Laws/ Regulations and according to practices observed by other remediation design or construction firms performing similar work. 5.0 Limitation of Scope of Services Client acknowledges that, except to the extent included in the Work, CH2M HILL has had no role in generating, treating, storing or disposing of Hazardous Materials which may be present at the Project Site and CH2M HILL has not benefited from the processes that produced such Hazardous Materials. No Hazardous Materials encountered by CH2M HILL in performing, or associated with, the Work shall at any time be or become the property of CH2M HILL. Any arrangements made by CH2M HILL for the treatment, storage, transport or disposal of any hazardous materials are made solely and exclusively for the benefit of Client using Client's EPA generator identification number(s) when required and'shall not result in any liability of CH2M HILL under this agreement or with respect to the hazardous materials. Client shall handle all hazardous materials in compliance with applicable laws and regulations and shall sign manifests and obtain generator identification numbers when required by laws and regulations. If required by the contract documents, CH2M HILL shall furnish the names of facilities currently licensed to accept hazardous materials, but it shall be Client's sole responsibility to select those to be engaged. Nothing contained in this Agreement shall confer on CH2M HILL the status of (a) a generator, Storer, disposer or treater of Hazardous Materials, (b) the party who arranged for the disposal of Hazardous Materials, or (c) a Hazardous Materials disposal facility, as provided in any Law or Regulation. ENVIRONMENTAL REMEDIATION SUPPLEMENT TO INC MSA VERSION 2-03 6.0 Insurance CH2M HILL shall furnish the insurance coverage stated below in addition to that set forth in Article 4.9 of the Agreement: Contractor's Pollution Liability of $ 1,000,000 each claim and in the aggregate. 7.0 Hazardous Materials The provisions of Paragraph A4 of Attachment A shall apply to non -hazardous materials and to Hazardous Materials which are not identified in the Contract Documents as objects of remediation. 8.0 Hazardous Materials means asbestos, PCB's, petroleum, radioactive material and any other toxic substances, in whatever form or states that is known or suspected to adversely effect the health and safety of humans or of animal or plant organisms, or which are known or suspected to impair the environment in any way whatsoever and shall include but not be limited to substances with the meanings provided in Section 4004 of the Solid Waste Disposal Act (42 USC 6903); Section 9601(14) of the Comprehensive Environmental Response, Compensation and Liability Act (42 USC 9601(14); as listed or designated under Sections 1317 and 132 1 (b)(2)(a) of Title 33 (33 USC 1317 and 132 1 (b)(2)(a)) or as defined, designated or listed under United States OSHA any other Federal, State or local law, regulation or ordinance concerning hazardous materials. 9.0 Law/Regulations are any applicable laws, rules, regulations, ordinances, codes or orders of any and all governmental bodies, agencies, authorities and courts having jurisdiction. ENVIRONMENTAL REMEDIATION SUPPLEMENT TO INC MSA VERSION 2-03 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 March 4, 2009 CH2M Hill, Inc. Attn: Thomas J. Horst Vice President, Industrial Systems 2485 Natomas Park Drive, Suite 600 Sacramento, CA 95833-2937 Re: Standard Master Agreement for Professional Services Dear Mr. Horst: The insurance requirements have been met. Transmitted herewith is a fully executed agreement, as referenced above, approved by City Council on February 23, 2009, through Resolution No. 9866. If you have any questions regarding this matter, please call Mr. Donal O'Callaghan at 323/583-8811 ext. 834. Very truly yours, qNel -Gir5n City Clerk NG: dj c: D. O'Callaghan Purchasing Department Resolution No. 9866 Agreement File No. 09-034 EiCcfusive(y industfiaf MASTER SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND C112M HILL TABLE OF CONTENTS C112M HILL STANDARD MASTER AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1. SERVICES GENERALLY .................................................................................................................... 1 ARTICLE2. COMPENSATION ................................................................................................................................. I ARTICLE3. TERMS OF PAYMENT ........................................................................................................................ 1 3.1 Invoices I 3.2 Time of Payment 1 3.3 Delay in Payment 1 ARTICLE 4. OBLIGATIONS OF CH2M HILL ......................................................................................................... 2 4.1 Independent Contractor; Subcontracts 2 4.2 Standard of Care 2 4.3 Subsurface Investigations 2 4.4 CH2M HILL's Personnel at Construction Site 2 4.5 Opinions of Cost, Financial Considerations, and Schedules 2 4.6 Construction Progress Payments 2 4.7 Record Drawings 3 4.8 Access to CH2M HILL's Accounting Records 3 4.9 C112M HILL's Insurance 3 ARTICLE 5. OBLIGATIONS OF CLIENT ................................................................................................................ 3 5.1 Client -Furnished Data 3 5.2 Access to Facilities and Property 3 5.3 Advertisements, Permits, and Access 3 5.4 Timely Review 3 5.5 Prompt Notice 3 5.6 Asbestos or Hazardous Substances 4 5.7 Contractor Indemnification and Claims 4 5.8 CLIENT'S Insurance 4 5.9 Litigation Assistance 4 5.10 Changes 4 ARTICLE 6. GENERAL LEGAL PROVISIONS ....................................................................................................... 4 6.1 Authorization to Proceed 4 6.2 Reuse of Project Documents 5 6.3 Delay 5 6.4 Limitations of Liability 5 6.5 Termination 5 6.6 Suspension, Delay, or Interruption of Work 5 6.7 No Third -Party Beneficiaries 5 6.8 Indemnification 5 6.9 Assignment 5 6.10 Waiver 6 6.11 Jurisdiction 6 6.12 Severability and Survival 6 6.13 Materials and Samples 6 6.14 C112M HILL's Deliverables 6 6.15 Dispute Resolution 6 ARTICLE 7. ATTACHMENTS, SCHEDULES, AND SIGNATURES ..................................................................... 6 ATTACHMENTA .................................................................................................................................................. A-1 I . Construction Obligations A-1 2. Safety A-1 3. Warranties and Completion A-1 4. Unknown Conditions A-1 5. Substantial Completion A-1 7. Site A-2 8. Substantial Completion, Acceptance, and Final Payment A-2 INC MSA TABLE OF CONTENTS VERSION 2-03 CH2MHILL STANDARD MASTER AGREEMENT FOR PROFESSIONAL SERVICES This Agreement, effective this 23rd day of February 2009, for a period of 5 years, is between: CLIENT: City of Vernon 4305 S. Santa Fe Ave Vernon, CA 90058 and CH2M HILL, INC., ("CH2M HILL") 9191 S. Jamaica Street Englewood, Colorado 80112 P. 0. Box 22508 Denver, CO 80222-0508 for services to be performed on a Task Order basis with respect to: Environmental and engineering support services in as requested by the City of Vernon ARTICLE 1. SERVICES GE NERALLY CH2M HILL shall furnish such engineering and related services, construction management, and subject to the provisions of Paragraph 6.9. 1, perform such construction work as CLIENT may request from time to time ("Services"). The particular project ("Project"), specific Services, work schedule, and cost or estimated cost will be mutually agreed and set forth in a Task Order issued by CLIENT under this Agreement. Each Task Order will specifically refer to and incorporate this Agreement by reference. The provisions of this Agreement and of Attachment A shall apply to Task Orders requiring construction. ARTICLE 2. COMPENSATION For performance of the Services, CLIENT will compensate CH2M HILL pursuant to the Compensation Schedule identified in Article 7, if any, and to the pertinent Task Order. ARTICLE 3. TERMS OF PAYMENT 3.1 Invoices CH2M HILL will submit invoices for each Task Order to CLIENT each month covering Services completed to date and, and as applicable, for materials and equipment delivered and stored on -site or off -site. Each invoice will be prepared in CH2M HILL's standard form and supported by documentation according to CH2M HILL's standard practice. Within 10 days of receipt of the invoice, CLIENT shall give detailed, written notice of any sums which it may reasonably dispute or contest. If the parties are unable to resolve the matter within 15 days, only that portion so reasonably contested may be withheld from payment. 3.2 Time of Payment Invoices are due and payable within 30 days after receipt by CLIENT. 3.3 Delay in Payment If CLIENT fails to pay CH2M HILL within 30 calendar days after receipt of any invoice, CH2M HILL will be entitled any or all to the following: 3.3.1 Interest CLIENT will be charged, interest at the rate of 1-1/2% per month, or that permitted by law if lesser, on all past -due amounts starting 30 calendar days after receipt of invoice. Payments will first be credited to interest and then to principal. 3.3.2 Suspension of Work If CLIENT fails to make payment in full within 30 calendar days of the date due for any undisputed billing, CH2M HILL may, after giving 7 calendar days' written notice to CLIENT, suspend services under this Agreement until paid in full, including interest. In the event of suspension of services, CH2M HILL will have no liability to CLIENT for delays or damages caused by CLIENT because of such suspension. CH2M HILL shall be entitled to an adjustment in compensation and the work schedule for the affected Task Order pursuant to Article 6.3. INC MSA VERSION 2-03 ARTICLE 4. OBLIGATIONS OF C112M HILL 4.1 Independent Contractor; Subcontracts 4.1.1 CH2M HILL represents that it is an independent contractor and will perform services pursuant to each Task Order as an independent contractor and not as an agent or employee of CLIENT. 4.1.2 CH2M HILL may retain such other subconsultants or subcontractors as it may deem desirable for proper and timely performance of Services. C112M HILL shall be responsible for the management of the subcontractors and subconsultants in the performance of their work. 4.2 Standard of Care The standard of care applicable to CH2M HILL's engineering or related services will be the degree of skill and diligence normally employed by professional engineers or consultants performing the same or similar Services at the time said services are perfon-ned. CH2M HILL will reperform any engineering or related services not meeting this standard without additional compensation. 4.3 Subsurface Investigations In soils, foundation, groundwater, and other subsurface investigations, the actual characteristics may vary significantly between successive test points and sample intervals and at locations other than where observations, exploration, and investigations have been made. Because of the inherent uncertainties in subsurface evaluations, changed or unanticipated underground conditions may occur that could affect total Task Order cost and/or execution. These conditions and cost/execution effects are not the responsibility of CH2M HILL. 4.4 C112M HILL's Personnel at Construction Site 4.4.1 The presence or duties of CH2M HILL's personnel at a construction site, whether as onsite representatives or otherwise, do not make CH2M HILL or CH2M HILL's personnel in any way responsible for those duties that belong to CLIENT and/or the construction contractors or other entities, and do not relieve the construction contractors or any other entity of their obligations, duties, and responsibilities, including, but not limited to, all construction methods, means, techniques, sequences, and procedures necessary for coordinating and completing all portions of the construction work in accordance with the construction contract documents and any health or safety precautions required by such construction work. 4.4.2 CH2M HILL and CH2M HILL's personnel have no authority to exercise any control over any construction contractor or other entity or their employees in connection with their work or any health or safety precautions and have no duty for inspecting, noting, observing, correcting, or reporting on health or safety deficiencies of the construction contractor(s) or other entity or any other persons at the site except CH2M HILL's own personnel. 4.4.3 The presence of CH2M HILL's personnel at a construction site is for the purpose of providing to CLIENT a greater degree of confidence that the completed construction work will conform generally to the construction documents and that the integrity of the design concept as reflected in the construction documents has been implemented and preserved by the construction contractor(s). CH2M HILL neither guarantees the performance of the construction contractor(s) nor assumes responsibility for construction contractor's failure to perform work in accordance with the construction documents. 4.5 Opinions of Cost, Financial Considerations, and Schedules In providing opinions of cost, financial analyses, economic feasibility projections, and schedules for the Project, CH2M HILL has no control over cost or price of labor and materials; unknown or latent conditions of existing equipment or structures that may affect operation or maintenance costs; competitive bidding procedures and market conditions; time or quality of performance by operating personnel or third parties; and other economic and operational factors that may materially affect the ultimate Project cost or schedule. Therefore, C112M HILL makes no warranty that CLIENT's actual Project costs, financial aspects, economic feasibility, or schedules will not vary from CH2M HILL's opinions, analyses, projections, or estimates. If CLIENT wishes greater assurance as to any element of Project cost, feasibility, or schedule, CLIENT will employ an independent cost estimator, contractor, or other appropriate advisor. 4.6 Construction Progress Payments Recommendations by CH2M HILL to CLIENT for periodic construction progress payments to the construction contractor(s) will be based on CH2M HILL's knowledge, information, and belief from selective sampling that the work has progressed td the point indicated. Such recommendations do not represent that continuous or detailed examinations have been made by CH2M HILL to ascertain that the construction contractor(s) have completed the work in exact accordance with the construction documents; that the final wor ' k will be acceptable in all respects; that CH2M HILL has made an exam m*ation to ascertain how or for what purpose the construction contractor(s) have used the moneys paid; that title to any of the work, materials, or equipment has passed to CLIENT free and clear of liens, claims, security interests, INC MSA VERSION 2-03 or encumbrances; or that there are not other matters at issue between CLIENT and the construction contractors that affect the amount that should be paid. 4.7 Record Drawings Record drawings, if required, will be prepared, in part, on the basis of information compiled and fai-nished by others, and may not always represent the exact location, type of various components, or exact manner in which the Project was finally constructed. CH2M HILL is not responsible for any errors or omissions in the information from others that is incorporated into the record drawings. 4.8 Access to C112M HILL's Accounting Records CH2M HILL will maintain accounting records, in accorda nke with generally accepted accounting principles. Records relating to a Task Order will be available to CLIENT during CH2M HILIJs normal business hours for a period of I year after CH2M HILL's final invoice pursuant to that Task Order for examination to the extent required to verify the direct costs (excluding established or standard allowances and rates) incurred hereunder. Only audit cost-reiinbursable items will be subject to audit. 4.9 C112M HILL's Insurance 4.9.1 CH2M HILL will maintain throughout this Agreement the following insurance: (a) Worker's compensation employer's liability insurance as required by the state where the work is performed and Employer's Liability with a limit of $ 1,000,000. (b) Comprehensive automobile and vehicle liability insurance covering claims for injuries to members of the public and/or damages to property of others arising from use of motor vehicles, including onsite and offsite operations, and owned, nonowned, or hired vehicles, with $ 1,000,000 combined single limits. (C) Commercial general liability insurance covering claims for injuries to members of the public or damage to property of others arising out of any covered negligent act or omission of CH2M HILL or of any of its employees, agents, or subcontractors, with $ 1,000,000 per occurrence and in the aggregate. (d) When famishing engineering or engineering related services, professional liability insurance of $ 1,000,000 per occurrence and in the aggregate. (e) When performing construction, Builder's Risk All Risk as described in Paragraph 5.8.3. 4.9.2 CLIENT will be named as an additional insured with respect to CH2M HILL's liabilities hereunder in insurance coverages identified in items (b), (c) and (e) and C112M HILL waives subrogation against CLIENT as to said policies. All insurance certificates will provide that the insurance carrier will give CLIENT 30 days' notice of cancellation of the policies. ARTICLE 5. OBLIGATIONS OF CLIENT 5.1 Client -Furnished Data CLIENT will provide to CH2M HILL all data in CLIENT's possession relating to CH2M HILL's Services. CH2M HILL will reasonably rely upon the accuracy, timeliness, and completeness of the information provided by CLIENT. 5.2 Access to Facilities and Property CLIENT will make its facilities accessible to CH2M HILL as required for CH2M HILL's performance of its services and will provide labor and safety equipment as required by CH2M HILL for such access. CLIENT will perform, at no cost to CH2M HILL, such tests of equipment, machinery, pipelines, and other components of CLIENT's facilities as may be required in connection with CH2M HILL's services. 5.3 Advertisements, Permits, and Access Unless otherwise agreed to in the Task Order, CLIENT will obtain, arrange, and pay for all advertisements for bids-, permits and licenses required by local, state, or federal authorities; and land, easements, rights -of -way, and access necessary for CH2M HILL's services or Project construction. 5.4 Timely Review CLIENT will examine CH2M HILL's studies, reports, sketches, drawings, specifications, proposals, and other documents; obtain advice of an attorney, insurance counselor, accountant, auditor, bond and financial advisors, and other consultants as CLIENT deems appropriate; and render in writing decisions required by CLIENT in a timely manner. 5.5 Prompt Notice CLIENT will give prompt written notice to CH2M HILL whenever CLIENT observes or becomes aware of any development that affects the scope or timing of CH2M HILL's Services, or of any defect in the work of CH2M HILL or construction contractors. INC MSA VERSION 2-03 5.6 Asbestos or Hazardous Substances 5.6.1 If asbestos or hazardous substances in any form are encountered or suspected, CH2M HILL will stop its own work in the affected portions of the Project to permit testing and evaluation. 5.6.2 If asbestos is suspected, CH2M HILL will, if requested, manage the asbestos remediation activities using a qualified subcontractor at an additional fee and contract terms to be negotiated. I 5.6.3 If hazardous substances other than asbestos are suspected, CH2M HILL will, if requested, conduct tests to determine the extent of the problem and will perform the necessary studies and recommend the necessary remedial measures at an additional fee and contract terms to be negotiated. 5.6.4 Client recognizes that CH2M HILL assumes no risk and/or liability for a waste or hazardous waste site originated by other than CH2M HILL. 5.7 Contractor Indemnification and Claims 5.7.1 CLIENT agrees to include the following in all construction contracts with contractors not affiliated with CH2M HILL: (a) the provisions of Article 4.4, C112M HILUs Personnel at Construction Site,: (b) the provisions of Article 5.7.3 regarding direct actions against CH2M HILL; (c) and provisions providing contractor indemnification of CLIENT and CH2M HILL for contractor's negligence. 5.7.2 CLIENT shall require construction contractor(s) to name CLIENT and CH2M HILL as additional insureds on the contractor's general liability insurance policy. 5.7.3 CLIENT agrees to include the following clause in all contracts with equipment or materials suppliers: Contractors, subcontractors, and equipment and material suppliers on the Project, or their sureties, shall maintain no direct action against CH2M HILL, CH2M HILL's officers, employees, affiliated corporations, and subcontractors for any claim arising out of, in connection with, or resulting from the CH2M HILL services performed. CLIENT will be the only beneficiary of any undertaking by CH2M HILL." 5.8 CLIENT's Insurance 5.8.1 CLIENT will maintain property insurance on all pre-existing physical facilities associated in any way with the Project. 5.8.2 CLIENT will provide for a waiver of subrogation as to all Client -carried property damage insurance, during construction and thereafter, in favor of CH2M HILL, CH2M HILUs officers, employees, affiliates, and subcontractors. 5.8.3 CLIENT will provide (or have the construction contractor(s) provide) a Builders Risk All Risk insurance policy for the full replacement value of all Project work including the value of all onsite CLIENT -furnished equipment and/or materials associated with CH2M HILL's services. Such policy will include coverage for loss due to defects in materials and workmanship and errors in design, and will provide a waiver of subrogation as to CH2M HILL and the construction contractor(s) (or CLIENT), and their respective officers, employees, agents, affiliates, and subcontractors. CLIENT will provide CH2M HILL a copy of such policy. 5.9 Litigation Assistance Article 1, Services Generally, does not include costs of C112M HILL for required or requested assistance to support, prepare, document, bring, defend, or assist in litigation undertaken or defended by CLIENT. All such Services required or requested of CH2M HILL by CLIENT, except for suits or claims between the parties to this Agreement, will be reimbursed as mutually agreed. 5.10 Changes CLIENT may make or approve changes within the scope of Services under a Task Order. If such changes affect CH2M HILL's cost of or time for perfornance of the Services, an equitable adjustment will be made through an amendment to the affected Task Order. ARTICLE 6. GENERAL LEGAL PROVISIONS 6.1 Authorization to Proceed Execution of the Task Order by CLIENT will be authorization for CH2M HILL to proceed with the Services, unless otherwise provided in the Task Order. INC MSA VERSION 2-03 6.2 Reuse of Project Documents All reports, drawings, specifications, documents, and other deliverables of CH2M HILL, whether in hard copy or in electronic form, are instrunients' of service for the pertinent Task Order, whether the Task Order is completed or not. CLIENT agrees to indemnify CH2M HILL and CH2M HILL's officers, employees, subcontractors, and affiliated corporations from all claims, damages, losses, and costs, including, but not limited to, litigation expenses and attorney's fees arising out of or related to the unauthorized reuse, change or alteration of these Task Order documents. 6.3 Delay In the event CH2M HILL is delayed in performance of Services by any act or neglect of CLIENT or anyone for whom CLIENT is responsible or by Acts of God, strikes, lockouts, accidents, or other events beyond the control of CH2M HILL, then CH2M HILL's compensation and the work schedule for the affected Task Order shall be equitably adjusted. In the event delays to the Task Order work is encountered for any reason, the parties agree to undertake reasonable steps to mitigate the effect of such delays. J 6.4 Limitations of Liability 6.4.1 To the maximum extent permitted by law, CH2M HILL's liability for CLIENT's damages under any Task Order will not, in the aggregate, exceed the Task Order value, whether such liability arises out of breach of contract or warranty, tort including negligence, strict or statutory liability, or any other cause of action. 6.4.2 To the maximum extent permitted by law, CH2M HILL and CH2M HILL's affiliated corporations, officers, employees, and subcontractors shall not be liable for CLIENT's special, indirect, or consequential damages, whether such damages arise out of breach of contract or warranty, tort including negligence, strict or statutory liability, or any other cause of action. In order to protect CH2M HILL against indirect liability or third - party proceedings, CLIENT will indemnify CH2M HILL for any such damages. 6.4.3 This article takes precedence over any conflicting article of this Agreement or any document incorporated into it or referenced by it. 6.5 Termination 6.5.1 This Agreement maybe terminated for convenience on 30 calendar days' written notice, or for cause if either party fails substantially to perform through no fault of the other and does not cornmence correction of such nonperformance within 5 calendar days of written notice and diligently complete the correction thereafter. 6.5.2 On termination, CH2M HILL will be paid for all authorized Services performed up to the termination date plus termination expenses, such as, but not limited to, reassignment of personnel, subcontract termination costs, and related closeout costs. 6.6 Suspension, Delay, or Interruption of Work CLIENT may suspend, delay, or interrupt the Services of CH2M HILL under a Task Order for the convenience of CLIENT. In such event, CH2M HILL's compensation and the work schedule for the affected Task Order shall be equitably adjusted. 6.7 No Third -Party Beneficiaries This Agreement gives no rights or benefits to anyone other than CLIENT and CH2M HILL and has no third -party beneficiaries. 6.8 Indemnification 6.8.1 CH2M HILL agrees to indemnify CLIENT for any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage or bodily mJury, including death, to the proportionate extent caused by the negligence or willful misconduct of CH2M HILL, CH2M HILL's employees, affiliated corporations, and subcontractors in connection with Services performed under Task Order issued hereunder. 6.8.2 Client agrees to indemnify C112M HILL from any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage or bodily injury, including death, to the proportionate extent caused by the negligence or willful misconduct of CLIENT, or its employees or contractors in connection with Task Orders issued hereunder. 6.9 Assignment 6.9.1 CH2M HILL represents that it performs construction only to the extent to which the construction is ancillary to other work under a Task Order, and that an affiliated company is authorized and qualified to perforin substantial construction. When, in CH2M HILL's sole opinion, work under a Task Order constitutes substantial construction, CH2M HILL will assign the Task Order and all of its rights and obligations thereunder to its affiliate. INC MSA VERSION 2-03 CLIENT shall accept such assignment and release CH2M HILL from any obligation whatsoever with respect to that Task Order. 6.9.2 Except as provided in Paragraph 6.9.1, this Agreement and Task Orders issued pursuant to it are bilateral personal services agreements. Neither party shall have the power to or will assign any of the duties or rights or any claim arising out of or related to this Agreement or Task Order issued pursuant to it, whether arising in tort, contract or otherwise, without the written consent of the other party. Any unauthorized assignment is void and unenforceable. These conditions and the entire Agreement are binding on the heirs, successors, and assigns of the parties hereto. 6.10 Waiver CLIENT waives all claims against CH2M HILL, including those for latent defects, that are not brought within 2 years of substantial completion of the facility designed or final payment to CH2M HILL, whichever is earlier or, in the event of a Task Order requiring substantial construction, within two years after expiration of the warranty period. 6.11 Jurisdiction The substantive law of the state of the Task Order Services shall govern the validity of this Agreement, its interpretation and performance, and any other claims related to it. 6.12 Severability and Survival If any of the provisions of this Agreement are held for any reason to be invalid, illegal, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. Limitations of liability, indemnities, and other express representations shall survive termination of this Agreement for any cause. 6.13 Materials and Samples Any items, substances, materials, or samples removed from the Project site for testing, analysis, or other evaluation will be returned to the Project site within 60 calendar days of Task Order close-out unless agreed to otherwise. CLIENT recognizes and agrees that CH2M HILL is acting as a bailee and at no time assumes title to said items, substances, materials, or samples. 6.14 C112M HILL's Deliverables CH2M HILL's deliverables, including record drawings, are limited to the sealed and signed hard copies. Computer - generated drawing files furnished by CH2M HILL are for CLIENT or others' convenience. Any conclusions or information derived or obtained from these files will be at user's sole risk. 6.15 Dispute Resolution The parties will use their best efforts to resolve amicably any dispute, including use of alternative dispute resolution options. ARTICLE 7. ATTACHMENTS, SCHEDULES, AND SIGNATURES This Agreement, including its attachments and schedules, constitutes the entire Agreement, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. Attachments and schedules on the date of contracting: Attachment A Construction Supplement IN WITNESS WHEREOF, the parties execute below: For CLIENT: Lo Name Title For 2M ILL By: —Vice President, Industrial Systems IThomILsJ. Horst Title INC MSA VERSION 2-03 CITY: City of Vernon N'ameC---- Title: Mqyor /A4wvpr-Pro-T-em- Date: APPROVED AS TO FORM: ATTEST: J11 ra on, City Attorney Manuela Giron, C�y Cderk INC MSA 6A VERSION 2-03 ATTACHMENT A CONSTRUCTION SUPPLEMENT The parties agree that the following terms and conditions shall supplement the terms and conditions of the Agreement when a Task Order requires CH2M HILL to perforru construction work. In the event of ambiguity or conflict with the terms and conditions of the Agreement, these provisions shall govern. 1. Construction Obligations CH2M HILL shall furnish all supervision and labor, materials, tools, equipment, unloading, taxes, insurance and other things necessary to perform and complete the Task Order. 2. Safety CH2M HILL shall take necessary precautions for the safety of its employees on the Project, and shall comply with all applicable provisions of federal, state and municipal safety laws to prevent accidents or injury to persons on, about or adjacent to the site. CH2M HILL, directly or through its Subcontractors, shall erect and properly maintain at all times, as required by the conditions and progress of the Task Order, necessary safeguards for the protection of workers and the. public. CH2M HILL, however, shall not be responsible for the elimination or abatement of safety hazards created or otherwise resulting from work at the site carried on by CLIENT or its employees, agents, separate contractors or tenants. CLIENT agrees to cause its employees, agents, separate contractors and tenants to abide by and fully adhere to all applicable provisions of federal, state and municipal safety laws and regulations. The above provision shall not relieve CH2M HILL's subcontractors of their responsibility for the safety of persons or property in the perfortnance of their work, nor for compliance with all applicable provisions of relevant laws. 3. Warranties and Completion CH2M HILL warrants that all materials and equipment furnished under this Agreement and the pertinent Task Order will be new unless otherwise specified, of good quality, in conforruance with the Contract Documents, and free from defective workmanship and materials. Warranties shall commence on the date of Substantial Completion of the Task Order or of a designated portion. CH2M HILL agrees to correct all construction performed under this Agreement which proves to be defective in workmanship and materials within a period of one year from the date of Substantial Completion or for such longer periods of time as may be set forth with respect to specific warranties required by the Contract Documents. Those products, equipment, systems or materials incorporated in the Task Order at the direction of or upon the specific request of CLIENT shall be covered exclusively by the warranty of the manufacturer. There are no warranties that extend beyond the description on the face thereof. All other warranties, express or implied, including any warranty of merchantability and any warranty of fitness for a particular purpose are expressly disclaimed. 4. Unknown Conditions If in the performance of the Work CH2M HILL finds latent, concealed or subsurface physical conditions which differ from the conditions CH2M HILL reasonably anticipated, or if physical conditions are materially different from those normally encountered and generally recognized as inherent in the kind of work provided for in this Agreement, then CH2M HILL's compensation and the work schedule of the affected Task Order shall be equitably adjusted by written amendment to the Task Order within a reasonable time after the conditions are first observed. 5. Substantial Completion Unless a date for Substantial Completion is previously agreed, when the drawings and specifications are sufficiently complete, the parties shall establish a date of Substantial Completion and any agreed schedule shall be updated to reflect such a date. CLIENT and CH2M HILL recognize that time is important in the performance of this Agreement and that CLIENT will enjoy substantial benefit if the Task Order is completed by the Substantial Completion date set forth in any agreed schedule. CH2M HILL shall use its best efforts to complete Services pursuant to each Task Order by the Substantial Completion date. Substantial Completion of the Services, or of a designated portion, occurs on the date when construction is sufficiently complete in accordance with the Contract Documents so that CLIENT can occupy or utilize the Project, or a designated portion, for the use for which it is intended. INC MSA- CONSTRUCTION SUPPLEMENT A-1, VERSION 2-03 6. Liens CH2M HILL will promptly pay for all services, labor, material and equipment used or employed in performance of any Task Order and will maintain the Projectfree and clear of Liens arising from its work. CLIENT will promptly give CH2M HILL a copy of any Notice of Lien or claim received by CLIENT from any subcontractor or supplier engaged by CH2M HILL or any of its subcontractors prior to final payment. As requested, CH2M HILL will famish certification that all of its obligations on the Project have been satisfied and that all claims and indebtedness have been paid. 7. Site CLIENT will obtain, arrange and secure at its own expense all permits, licenses, approvals, legal or administrative orders, deposits, land, casements, rights -of -way, and access necessary for CH2M HILL to perform the Task Order. CH2M HILL may rely upon the accuracy of soils reports, subsurface investigations, legal limitations and legal descriptions, and any other information provided by CLIENT. CLIENT shall famish such information in its possession as CH2M HILL may request and shall immediately transmit to CH2M HILL any new information and any changes in plans resulting from such information. CLIENT shall be responsible for the location of any installation or underground utilities. 8. Substantial Completion, Acceptance, and Final Payment 8(a). Substantial Completion CH2M HILL will notify CLIENT when the construction work is substantially complete. Within 5 business days, CLIENT shall inspect the work and furnish a certificate of acceptance or notify CH2M HILL in writing of any work requiring completion or correction. Upon Substantial Completion, CLIENT shall pay CH2M HILL the unpaid balance of the Task Order price, less a sum equal to CH2M HILL's estimated cost of completing any unfinished items. Each month thereafter, CLIENT shall pay CH2M HILL the amount retained for unfinished items as each item is completed. 8(b). Acceptance and Final Payment Within five business days after receiving notice from CH2M HILL that the work is completed or corrected, CLIENT will issue a certificate of acceptance. Final payment will be due within 15 days after the certificate of acceptance is issued. CH2M HILL shall be relieved of any further responsibility for the Services under the Task Order except for reperformance pursuant to Paragraph A3 of this Construction Supplement. If CLIENT fails to issue such certificate or notice within the specified time, the Services under the Task Order shall be deemed to be accepted for all purposes hereunder. 8(c). Waiver of Claims Final payment shall constitute a waiver of all claims by Owner except those previously made in writing and identified by Client as unsettled at the time of acceptance and those arising during the warranty period pursuant paragraph A3. Acceptance of final payment shall constitute waiver of all claims by CH2M HILL except those previously made in writing. ING MSA - CONSTRUCTION SUPPLEMENT A-2 VERSION 2-03 TASK ORDER NO. This Task Order is issued pursuant to the Standard Master Agreement for Professional Services dated: which is incorporated herein by this reference, with respect to ("Project"). Specific Services: Compensation Provisions: Work Schedule: The Authorized Representatives designated below are authorized to act with respect to the Task Order. Communications between the parties shall be between parties and their consultants or subcontractors shall be through the Authorized Representatives: For the Client: For C112M HILL Name: Name: Address: Address: Telephone: Telephone This Task Order No. is effective this (date) Accepted for C112M HILL by: Accepted for Client by: Name Name Title Title INCIVISATASKORDER VERSION 2-03 ATTACHMENT ENVIRONMENTAL REMEDIATION SUPPLEMENT Client and CH2M HILL agree that the following provisions supplement the provisions of the Agreement and of Attachment A when a Task Order requires remediation construction. 1.0 Additional Obligations of Client 1.1 Clivitt's Warranties 1.1.1 Title to Wastes; No Violation Client warrants that it holds clear title to all wastes to be treated, stored and/or disposed and is under no legal restraint or order which would prohibit the treatment, storage and/or disposal of such wastes by any transporter or disposal facility. Client further warrants that the Work to be performed by CH2M HILL does not violate any final court order or any final ruling of any governmental agency of which Client has knowledge. 1.1.2 Furnished Data Client represents that it has famished to C112M HILL full and complete information regarding the requirements of the Work including, without limitation, soils reports, subsurface investigations, legal limitations and legal descriptions. CH2M HILL may rely upon the accuracy of this and any other inforination provided by Client. Client shall famish such information in its possession as CH2M HILL may request and shall immediately transmit to C112M HILL any new information and any changes in plans resulting from such information. 1.1.3 Rights of Way Client warrants that any right-of-way provided by Client to/from the Site and to/from the most convenient public way is sufficient to bear the weight of all of CH2M HILL's equipment and vehicles reasonably required to perform the Work. CH2M HILL shall not be responsible for any changes required to be made to any private pavement or accompanying subsurface of any route for its performance of the Work, unless otherwise specifically agreed. The reasonable cost of any repairs to roadways and rights -of -way arising out of the normal wear and tear resulting from CH2M HILL's use thereof by its equipment during the performance of the Work shall be reimbursable under Article 6.3. 1.2 1 Reporting If Laws/Regulations require Client to report the results of any Work, Client shall be responsible for all such reporting and shall indemnify and hold CH2M HILL harmless from any fines, penalties, assessments or other costs, including reasonable attorney fees, resulting from Client's failure to report. 1.3 Underground Utilities Client shall be responsible for the location of any installation or underground utilities. 1.4 Additional Indemnification Client shall indemnify and hold harmless CH2M HILL, its directors, officers, employees, agents and subcontractors against any and all liabilities, costs, or expenses, including reasonable attorney's fees, for claims, demands and/or causes of action asserted and/or filed by third persons not parties to this Agreement, arising out of or as a result of: The presence of CH2M HILL or its subcontractors on the Site; The completed Work by CH2M HILL, except to the extent that such liabilities, claims, demands, causes of action, costs and expenses are caused by the negligence of CH2M HILL, its directors, officers, agents, employees or subcontractors; ENVIRONMENTAL REMEDIATION SUPPLEMENT TO INC MSA VERSION 2-03 3. Soil, air, surface and ground -water pollution, gas or contamination emanating from the site; 4. Transportation and disposal of waste streams and residue; Any liability arisi out of Client's statutory status as generator of the waste streams, which status is 1119 expressly retained by Client. 2.0 Safety The following provisions supplement the requirements of Paragraph A2 of Attachment A: 2.1 Disclosure Performance of the Work may require disclosure pursuant to Laws/Regulations. If CH2M HILL determines that reporting is required, it will give Client notice. Nothing contained in this paragraph shall be construed to impose on CH2M HILL any obligation to report the foregoing matters. 2.2 Client's Responsibility All directions by Client shall comply with laws/regulations. If CH2M HILL believes that compliance with any direction by Client would violate any Laws/Regulations, then CH2M HILL shall not be required to comply with it and shall so advise Client. If Client fails to modify its directions within 10 days after CH2M HILL's notice to Client or if Client fails to report to governmental authorities any matter which Client is required by Laws/Regulation to report, then CH2M HILL shall have the right to suspend the Work, which delay shall be attributable to Client, or to terminate the Agreement pursuant to Article 6.5 of the Agreement. 2.3 Other Contractors; Waiver If Client contracts with others for the performance of other work on the site, Client will specify in writing the extent of authority of each contractor. CH2M HILL will not be responsible for procedures or adequacy of health and safety measures of such other contractors. If C112M HILL observes any employee of any other such contractor engaging in an act or procedure which could result in injury or death or which CH2M HILL believes to violate any applicable Law or Regulation and such condition persists after it is brought to Client's attention, then upon notice to Client, CH2M HILL and its subcontractors shall have the right to cease all work on the Project until the condition is corrected. CH2M HILL will not be liable for any cost or expense resulting from such work stoppage and Client waives, on behalf of itself and other contractors on the site with whom it has contracted, any claim against C112M HILL with respect -to same. 3.0 Changes in Laws If changes in Laws/Regulations not known or foreseeable on the date of receipt of proposals have an effect on the cost or time of performance, the price and time for performance of the Task Order shall be equitably adjusted pursuant to Article 5. 10 of the Agreement. 4.0 Warranty The following sentence replaces the first sentence of Article 4.2 of the Agreement: CH2M HILL will perform the Work in compliance with applicable Laws/ Regulations and according to practices observed by other reinediation design or construction firms performing similar work. 5.0 Limitation of Scope of Services Client acknowledges that, except to the extent included in the Work, CH2M HILL has had no role in generating, treating, storing or disposing of Hazardous Materials which may be present at the Project Site and CH2M HILL has not benefited from the processes that produced such Hazardous Materials. No Hazardous Materials encountered by CH2M HILL in performing, or associated with, the Work shall at any time be or become the property of CH2M HILL. Any arrangements made by CH2M HILL for the treatment, storage, transport or disposal of any hazardous materials are made solely and exclusively for the benefit of Client using Clienfs EPA generator identification number(s) when required and shall not result in any liability of CH2M HILL under this agreement or with respect to the hazardous materials. Client shall handle all hazardous materials in compliance with applicable laws and regulations and shall sign manifests and obtain generator identification numbers when required by laws and regulations. If required by the contract documents, C112M HILL shall furnish the names of facilities currently licensed to accept hazardous materials, but it shall be Client's sole responsibility to select those to be engaged. Nothing contained in thisAgreement shall confer on CH2M HILL the status of (a) a generator, Storer, disposer or treater of Hazardous Materials, (b) the party who arranged for the. disposal of Hazardous Materials, or (c) a Hazardous Materials disposal facility, as provided in any Law or Regulation. ENVIRONMENTAL REMEDIATION SUPPLEMENTTO INC IVISA VERSION 2-03 6.0 Insurance CH2M HILL shall famish the insurance coverage stated below in addition to that set forth in Article 4.9 of the Agreement: Contractor's Pollution Liability of $ 1,000,000 each claim and mi the aggregate. 7.0 Hazardous Materials The provisions of Paragraph A4 of Attachment A shall apply to non -hazardous materials and to Hazardous Materials which are not identified in the Contract Documents as objects of remediation. 8.0 Hazardous Materials means asbestos, PCB's, petroleum, radioactive material and any other toxic substances, in whatever form or states that is known or suspected to adversely effect the health and safety of humans or of animal or plant organisms, or which are known or suspected to impair the environment in any way whatsoever and shall include but not be limited to substanc - es with the meanings provided in Section 4004 of the Solid Waste Disposal Act (42 USC 6903); Section 9601(14) of the Comprehensive Environmental Response, Compensation and Liability Act (42 USC 9601(14); as listed or designated under Sections 1317 and 1321(b)(2)(a) of Title 33 (33 USC 1317 and 1321(b)(2)(a)) or as defined, designated or listed under United States OSHA any other Federal, State or local law, regulation or ordinance concerning hazardous materials. 9.0 Law/Regulations are any applicable laws, rules, regulations, ordinances, codes or orders of any and all governmental bodies, agencies, authorities and courts having jurisdiction. ENVIRONMENTAL REMEDIATION SUPPLEMENTTO INC MSA VERSION 2-03 . RI8:K X�MGEMENT INTER DEPARTMENT MEMORANDUM February 19,, TO: Nelly Giron- City Clerk FROM- Willard G. Yamaguchi Risk Manager U'�b RE: CH2M Hill, Inc. Plea8e be advised that the above referenced has acceptable insurance coverage on file. Attached foryour retention are insurance, certificates and related goll,cies,declarations and/or endbrsOMentS for the above- referenced insured that were i,,4sued by; e Zurich American Insurance Company (General Liability, Automobile Liability, -and Professional Liability) American Zurich Insurance Co (Wor�kexs,' Compensat-ion) This concerns insurance coverage for Master Agreement for engineering and related services, construction management, and construction work as requested by the City from time to time. WY/ab ct JlAdy Lehr MA.RSH CERTIFICATE OF INSURANCE CERTIFICATE NUMBER PRODUCER MARSH USA, INC. 1225 17TH STREET, SUITE 2 100 DENVER, CO 80202-5534 SEA-001070181-06 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN THE POLICY. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN. COMPANIES AFFORDING COVERAGE COMPANY 15114 -00124-GAWC-08/09 SCO A ZURICH AMERICAN INSURANCE COMPANY INSURED COMPANY CH2M HILL, INC. 3 HUTTON CENTRE DRIVE, SUITE 200 8 AMERICAN ZURICH INSURANCE CO. SANTA ANA, CA 92707 COMPANY C COMPANY D COVERAGES This certl0pate,supqrsedes and replaces any previously Issued cerfifleate for the pollay.perlod noted below. THIS IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REOUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. CONDITIONS AND EXCLUSIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, co TYPE OF INSURANCE POLICY NUMBER LTR POLICY EFFECTIVE POUCY EXPIRATION LIMITS DATZ(IAMIDONY) DATE (MMIDD/YY) A GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY F%-01 I CLAIMS MADE I" I 00CUR GLO3784726-04 05/01/08 05101/09 GENERAL AGGREGATE S 5.000.000 X PRODUCTS - COMP/OP AGO $ 51000,000 PERSONAL & ADV IMURY $ 1,500.000 EACH OCCURRENCE $ 1.5m.000 OWNER'S & CONTRACTOR'S PROT X FIRE DAMAGE (AAy one fire) $ 11500,000 $.qnn.nnnqiR MED EXP (Any one perw) s AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 2,000,000 A ANY AUTO BAP8378516-13 05/01/08 05/01/09 ILI SOD LY INJURY (Per P. . r . son) $ ALL OWNED AUTOS SCHEDULED AUTOS BODILYINJURY (Per Wddem) s HIRED AUTOS NON -OWNED AUTOS PROPERTY DAMAGE $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ OTHER THAN AUTO ONLY: ANY AUTO EACH ACCIDENT 1$ AGGREGATE 1 $ EXCESS LIABILITY EACHIOCCURRENCE -IS AGGREGATE Is UMBRELLAFORM is OTHER THAN UMBRELLA FORM WORIVERS COMPENSATION AND EMPLOYERS'LIASILITY WC8378566-14 (ADS) 05/01/08 05/01/09 ENTil"n" x I WL E EL EACH ACCIDENT $ 11000,000 B A THE PROPAIETOR/TI iNcL _X PARTNERSA XECU VE OFFICERS ARE., 12-1 EXCL WC83785W13 (WI & MA) WC3784761-03 (HI & ID) 06/01/08 05/01/08 05101/09 05fol/09 EL OISEA)SE-POPLICY LIMIT $ 1,000,000 EL DISEASE -EACH EMPLOYEE $ 1,000,000 OTHER DESCRIPTION OF OPEFiATIONSUCATIONSNEHICLESMPECLAL ITEMS RE: ALL PROJECTS. CERTIFICATE HOLDER IS NAMED AS ADDITIONAL INSURED AS PER THE BLANKET ENDORSEMENT TO THE GENERAL LIABILITY AND AUTO LIABILITYPOLICIESY. COVERAGE PROVIDED BY THE ABOVE GENERAL LIABILITY POLICY SHALL BE PRIMARY AND IS LIMITED TO THE LIABILITY RESULTING FROM THE NAMED INSURED'S OWNERSHIP AND/OR OPERATIONS. GENERAL LIABILITY AND WORKERS COMPENSATION DERTIFICATENOLVER,'.' CMCELLA-1110N: SHOULD ANY OF THE POUCIES OESCFtLBED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. THE INSURER AFFORDING COVERAGE — ENDEAvon To uAlL - 3 DAYS WFUrTEN NOTICE TO THE CITY OF VERNON ATTN. KRISHNA NAND CERTIFICATE HOLDER NWED HEREIN. BUT FAILURE TO MAIL SUCH NOTICE SHAM WPOSe NO COWATION OR 4305 SANTA FE AVE LIABILITY OF ANY KIND UPON THE INSURER AFFORDING COVERAGE, rTS AGENTS OR REPRESENTATIVES. OR THE VERNON, CA 90058 ISSUER OF THIS CERTIFICATE, AUTHORIZED PEIPRESENTATIVE Mar*hUSAI. Sharon A. Hammer MM1(3102) VALID AS OF:04/25/08 k.DDITIONAL INFORMATION 'ADDUCE" MARSH USA, INC. 1225 17TH STREET, SUITE 2100 DENVER, CO 80202-5534 15114 -00124-GAWC-MO9 sco 4SURED CH2M HILL. INC. 3 HUTTON CENTRE DRIVE, SUITE 200 SANTA ANA, CA 92707 CONTINUED FROM DESCRIPTION SECTION: POLICIES INCLUDE A WAIVER OF SUBROGATION. -RTI HOLDER CITY OF VERNON ATTN. KRISHNA NAND 4305 SANTA FE AVE VERNON, CA 90068 OOMPANY E COMPAW F COMPAW H Marsh USA Mom Sharon A. Hammer DATE (MUMOM) SEA-001070181-06 04/25/08 COMPANIES AFFORDING COVERAGE Zurich American In-wrance Co. ENDORSEMENT-P 0 ZURICH FPdicy No. I Eff. Date of Pol. xp. Date of Poll Eff. Date of End. Ploducm I Add'l P(6m Retu G LO 3 784726-041 05101108 06101109 06/01108 PO-263. . 00 . 0 . 1$ THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. I lie Intimud: CI 12M 1101 Companies, Ltd. Mailiny Addicss (incJuding Zip Code): P.O. Dox 22500 Denver, CO 60222 r6onlelit niodiiFm irtsuranoo provIded by the (00OWng: COMME-RC IAL GENER A[. lAARIl .1 TY (.-:(.)VhKA(JE' FORM BROAD FORM ADDITIONAL INSURED ALL PERSONS. ORGANIZATIONS OR ENTITIES FOR WHOSE PROTECTION AND BENEFIT THE NAMIZU INSURED HAS AGREED TO NAME THEM AS AN ADDITIONAL INSURED -By CONTRACT DURING THE TERM OF rHIS POLICY INDICATING SUCH COVERAGE. HOWEVER, INSURANCE WITH RESPECT TO EACH PERSON. ORGANIZATION OR ENTITY SHALL NOT EXCEED SUCH COVERAGE AND/OR LIMITS OF LIABILITY OF THE NAMED INSURED. CounterMgned Aulhorizcd Repiesentalive U Gl- 11 14A CW (I 0/0,e) pautt I C11 I Zuricli Anicrican 111surincoConipany ENDORSEMENT - 0 0 ZURICH Policy No. Eff. Dale of Pot xP. Date of Poll Eff. Oato of End, Producer AddT Prom Re GL0378472 6-04 05101/08 r 06/01109 1 05101/08 1 29-253-000 ryped: 05/05108 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ 17"CAREFULLY. The Insured: CI-12M Hill Companies, Lid Mailing Address (Including Zip Gorley P.O. Box 22508 Denver, CO B02V Mement nwdl%s Imutance provicled by the fonowtn9i COMMERCIAL GENERAL LIABILITY COVERAOE FORM THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED — PRIMARY COVERAGE 93000B ED, 7-92 This endorsement Modifies Insurance provided under the follow0g, COMMERCIAL GENERAL LIABILITY COVERAGE FORM SCHEDULE Name of person ar nrgani;,afion- As pot Endorsement C to the policy, Automatic Additional Insureds and as per Endorsement P to the policy, Broad Foim Additional Insured. WHO IS AN INSURED (SecUon 11) is amended to Include as an inAiored the person or organizauon shown In the Schedule, but only with respect to liability arising out of your work for that Insured by or for you Furthermore, the following Is added to SECTION IV COMMERCIAL GENERAL LIABILITY CONDITIONS paragraph 4. Other Insurance: 4. Other Insurance d) This insuranre is primary for the person or organization shown In the schedule, but only with respect to liability &rising out of your work far that insured by or for you, Other insurance afforded to that Insured will 013ply au excess and not contribute as primary to the Insurance afforded by this endorsement, U.GL- 111 4A CW (19j02) N. no I of I Zurich Americrin Insumnce Company Endorsement - C 0 ZURICH Policy No. ff. Date of Pol.1 Exp. Date of Pol. Eff. Data of End I Pfoducer , I Add-1. Pre2j_d $116,1wn Pmm. GL03784726-04 05/01/08 05/01/09 05/01/08 129-253-000 Typed' 05/06/08 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COMMERCIAL GENERAL I LAnILITY COVERAGE PART IT IS AAREED THAT THIS POLICY IS IIC-RE13Y AMENDED AS INDICATED ALL OTHER TERMS AND CONDITIONS or TlflS REMAIN UNCHANGED. AUTOMA I IC AUUI I IONAL INSUREDS Tf IC FOLLOWING PROVISION 13 ADDED TO (SECTION III WHO IS AN INSURED. (CG 00 01) A. ANY ENTITY YOU ARE REQUIRLD INA WRIT I EN "INSURED c6NTRAer (HEREINAFTER CALLED ADDITIONAL INSURED) TO NAME AS AN INRIIRFn IS AN INSURED BUT ONLY WITH RESPECT TO LIALBILITY ARISING OUT OF YOUR PREMISES. 'YOUR WORK'FOR THE ADDITIONAL INSURED. OR ACTS OR OMISSIONS OF THE AODMONAL INSURED IN CONNEC FION WITIH THE GENERAL SUPFRVISION OF 'YOUR WORK" TO THE EXTENT SET FORTH BELOW, (1) THE LIMIFSOF INSURANCE PROVIDED ON BEHALF OFTHFADDITIONAL INSURED ARE NO I GREA I ER THAN THOSE RffOIuRFn RY SUCH CONTRACT. (2) THE COVERAGE PROVIDED TO THE ADOITIONAI INSURED(S) 15 NOT WILA HER T1 LAN THAT CUSTOMARILY PROVIDED BY THE POLICY rORMS SPECIFIED IN AND REQUIRED BY THE CONTRACT, (3) ALL INSURING AGREEMENTS. FXCI-USIONS AND CONDITIONS OF THIS POLICY APPLY, (4) IN NO EVENT SHALL lHt: COVERAGES OR LIMITS OF INSURANCE INTHISI covr-RAGE F-6KM BE INCREASEDBY SUCH CONTRACT. B. LXCLPTWI[EN REQUIRED OTHERWISE BY"INSIIRFn CONTRAcr', THIS INSURANCE DOES NOTAPPLY IU: (1) -BOOILY INJURY- OR -PROPERTY DAMAGE- OCCURRING AFTER; (a) ALL WORK ON THE PROJECT (OTHER THAN SEAVICC, MAINTENANCE ON REPAIRS) TO BE PERFORMED RY OR ON BEIIALF OF I HE ADDITIONAL INSUIRED(S) AT THE SITF,OF THE COVERED OPERATIONS HAS BEEN COMPLETF0. OR (b) Tim r PORTION OF 'YOUR WORM' OUT OF WHIrH THE INJURY OR DAMAGE ARISE: 5 IiAS UEEN PUT TO ITS INTENDED I)8F 11Y ANY PERSON OR ORGANIZATION OTHER THAN ANOTHER CONTRACTOR OR SUBCONTRACTOR ENGAGED IN PrvRFORMINO OPERATIONS FOR A PRINCIPAL AS A PART OF THE SAME PROJECT. (2) 'BODILY INJURY" OR 'PROPERTY DAMAGI:- ARISING OUT OF ANY ACTOR OMISSION OF THE ADDITIONAL. INSURCD(S) OR ANY OF THEIR EMPLOYEES, OTHFR THAN THE OENERAL GUKRVISION OF WORK PERFORMED FOR THE AnDITIONAL INSURED(S ) DY YOU. (3) "PRQPERIY OAMAGE"TO; (a) PROPERTY owNco, USED OR OCCUPIED BY OR RENTED To THE ADDITIONAL IN$URCO(S) (b) PROPERTY IN THF CARE, CUSTODY Oft CON I 140L OF THE ADDITIONAL INSURED(S) OR PROPERTY FOR WHICH I HL AUDI I IONAL INSURencs) 19 FOR ANY PURPOSE CXC- RCISING PHYSICAL CON TROL. OR (c) "YOUR WORK, rORTI IE ADDITIONAL INSURED(S) C. ANY COVERAGE PROVIDE 0 HEREUNDER SHALL UIE EXCESS OVER ANY OTHER VALID AND CAN I.FCTiRLE INSURAW.E AVAILAULL TO THE ADDITIONAL INSI IRFXS) WHETHER PRIMARY, C-XCESS, CON7IfmNT OR ON ANY OTHER RASIS UNLESS A CONTRACT SPECIFICALLY REQUIRES THAT THIS INSURANCE BE PRIMARY, OR YOU REQUEST THAT IT APPLY ON A PRIMARY BASIS. U.r,L- I I 14A CW (101021 Page I of I DATI! (MM#VDNM) AC-08-D- CERTIFICATE OF LIABILITY INSURANCE 07107ram PRODUCER THIS CERTIFICATE 18 ISSUED AS A MATTER OF INFORMATION MARSH USA. INC. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 1225 17TH STREET, SUITE 2100 HOLDER. THIS CERTIFICATE DOES NOT AMEND EXTEND OR DENVER. CO 802024&U ALTER THE COVERAGE AFFORDED BY THE POLIC&S BEWW. 15I144XX=-PLlMM-08i09 sco INSURED CH2M HILL, INC. 3 HUTTON CENTRE DRrA, SUITE 200 SANTA ANA, CA 92707 INSURERS AFFORDING COVERAGE NAIC 0 iNauRER A. Zurtch Anwr(con Insunince Co INSURERC: INSURHAV. INSURER E: THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONMACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE; BEEN REDUCED BY PAID CLAIMS. NSF LTR WADSDR� TVPE OF INSURANCE POLICY NUMBER POLICY E111910TIVE CATE(MMADDIM POLICY EXPOIATM OATEIMMiDDIVY) LIMITS GENERAL LIABILITY EACH OCCURRENCE W&ME TO RENTED ,a EflEhUSF a o0ou'" $ COMMERCIAL GENERAL LIABILITY MEP EXP (Arty one par@*) $ CLAIMS MADE OCCUR PERSONAL S, ADV INJURY $ GENERAL AGGREGATE $ GE RALAGGRE 0- APPLIES FIEF FTPOLICY JECT F-1 LOC PRODUCTS - CO#APiOP AGC- $ AUTOMOBILE LIABILITY COMBINED SINOU LIMIT (Es ncident) $ ANYAUTO ALL OWNED AUTOS SCHEDULED ALITOS BODILY INJURY (Pat P—) $ BODILY INJURY (Psraoddard) $ HIREDAUTOS NONPOWNEDAUTOS PROPERTY DAMAGE (Potooddord) GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ I ANYAUTO . OTHER THAN EAA CC AUTOONLY. AGO 9 $ Exc IMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR CLAIMS MADE AGGREGATE $ DEDUCTIBLE $ S RETENTION S -ii—ORK048 COMPENSATION AND EMPLOYERS, LIABILITY -'.L EACH ACCIDENT $ ANY PROPRIETOPJFARTNEPAXECUTIVE OFFICAR/MEMSER. EXCLUDED? L DISEASE - rA SMILOV11 $ :.L DISEASE - POLICY umrr $ M-COMOMI OTHER A PROFESSIONAL LIABILITY* EOC38n621-06 05/01= 05/01= $1,000,000 EACH CLAIM AND TOTAL FOR ALL CLAIMS DESCRIPTION OF OPEFtATIONNO-CATIONSriEHICLE&-ZLUSIONS ADDED BY FMOORSEMENTISPECL4L PROVISIONS - RE; ALL PROJECTS. *FOR PROFESSIONAL LIABILITY COVERAGE. THE AGGREGATE LIMIT IS THE TOTAL INSURANCE AVAILABLE FOR CLAIMS PRESENTED WITHIN THE POLICY PERIOD FOR ALL OPERATIONS OF THE INSURED. THE LIMIT VVILL BE REDUCED BY PAYMENTS OF INDEMNITY AND EXPENSE. CERTIFICATE HOLDER SEA-00118139"I CANCELLATION I CITY OF VERNON ATTN. KRISHNA NAND 4305 SANTA FE AVE VERNON. CA 9W58 BROULD ANY Of THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. THE ISSUING INSURER WILL ENDEAVOR TO MAIL 3&— DAYS WRITTEN NOTICE TO THE CgRTtFICATE HOLDER NAM90 TO THE LEFT. BUT FAILURE TO 00 90 $HALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY IUD UPON THE INSURER. ITS AGENTS OR REPRESENTATIVES. Wj=ojM"NfAM Sham A. Hammer o ACORD CORPORATION Best's Rating Center - Company Information for Zurich American Insurance Company Page I of 2 �9 View Ratings: Financial Strength Issuer Credit Securities Advanced-Soarch Other %%b Centel Zurich American Insurance Company (a rnember of Zurich Financial Services) This rating 1, ,�=,na�l* p A.M.139st 0: 02603 NAIC 0: 16636 FEIN 0: 364233469 empanles GPWM. an excellent awly to Address: 1400 American Lane Phone: 847-605-6000 (mat am* orvolno oblioaWne Schaumburg, IL 60196-1056 Fax: 847-60MOI I to pollayholderms.. Web: www.zurichns.com Besrs Ratings Financial Strength Ratings View Definitions Issuer Credit Ratings View Dolinlitto Rating: A (Excellent) Long -Term: a+ Affiliation Code: 9 (Group) Outlook: Positive Financial Size Category: XV ($2 Billion or greater) Action: Affirmed Outlook: Positive Date: December I 1, 2007 Action: Affirmed Effective Date: December 11, 2007 * Denotes UnOer.Review Best's Ratings Reports and News Visit our NewsRoom for the latest news and press releases for this company and Its A.M. Best Groul: ANELCraditRepQrt -! Insurance Professional (Unabridged) (formerly known as Bases Companj Best's Financial Strength Rating and rationale along with comprehensive analytical commeni business overview and key ffnanclal data. Report Revision Date; 12/11/2007 (represents the Latest signifleant change). Historical Reports are available InAMBCr it.8apqq.!-l!]Ls '-'I. BesVs Executive Summary Reports (Financial Overview) - available In three versions, th, 111�;;71 style reports feature balance sheet, Income statement, key finandal performance tests Incluc liquidity and reserve analysis. Data Status: 2008 Bests Statement File - P/C, US. Contains data compiled as of 71112008 Chocked). • SIngl" .ornpany - five years of financial data spedfically on this company. • Q-QmpaAson - side -by -side financial analysis of this company with a poor group of up to companies you select. 9 QQMQ-qft - evaluate this oompanys financials against a peer group composite. Report average and total composite of your selected peer group. A Mo--CMILELop-od.:!.SminmLo-P.ro.foselonaI - provides three years of key financial data pr colorful charts and tables. Each report also features the latest Besrs Ratings, Rating Ratiom from our Business Review commentary. Data Status: Contains data compiled as of 7/1/2008 (Quality Cross Checked). Includes Besrs Financial Strength Rating its). as provided In Sears Key Rating Guide products. Data Status: 2006 Financial Data (Quality Cross cheaed). Financial and Analytical Products geAt't!!ro-mrix/-Qakua—itySffn--Wc---Ptemim DAW-A-RwoilA RestsKeyR "tin (juideL-P/C,Qa&_SZa a naA htti):Ilwww3.wnbest.conVratinizslFullProfile.asD?BI=O&AMBNum=2563&AItSrc=I&AltN... 7/7/2008 101 PROVE.0 1­1-D '09 C,14Y C01INCILI/011 !NTEROFFICE M MEMORANDUM Light & Power Department Q g 6 6 DATE: February 5, 2009 TO: Eric Fresch City Administrator FROM: Donal O'Callaghan Director of Light and Power SUBJECT: CH2M 1HLL, Inc., NEW CONSULTING SERVICES AGREEMENT Attached for Council approval is the CH2M HILL, Inc., new Master Services Agreement to be used for any general related services, work schedule, and construction management to be performed under a Task Order with specific services and cost or estimated. cost as to form. Note, also included in this package is CH2M HILL, Inc., Scope of Work. If you have any questions, please call me on extension 834. DOC: rint Attachments cc: Judy Lehr Nelly Giron Project Control Document Control MASTER SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND CH2M HILL TABLE OF CONTENTS C112M HILL STANDARD MASTER AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1. SERVICES GENERALLY 1 ARTICLE 2. COMPENSAT10N I ARTICLE 3. TERMS OF PAYMENT 1 3.1 Invoices 1 3.2 Time of Payment 1 3.3 Delay in Payment I ARTICLE 4. OBLIGATIONS OF CH2M HILL 2 4.1 Independent Contractor; Subcontracts 2 4.2 Standard of Care 2 4.3 Subsurface Investigations 2 4.4 CH2M HILL's Personnel at Construction Site 2 4.5 Opinions of Cost, Financial Considerations, and Schedules 2 4.6 Construction Progress Payments 2 4.7 Record Drawings 3 4.8 Access to CH2M HILL's Accounting Records 3 4.9 CH2M HILL's Insurance 3 ARTICLE 5. OBLIGATIONS OF CLIENT 3 5.1 Client -Furnished Data 3 5.2 Access to Facilities and Property 3 5.3 Advertisements, Permits, and Access 3 5.4 Timely Review 3 5.5 Prompt Notice 4 5.6 Asbestos or Hazardous Substances 4 5.7 Contractor Indemnification and Claims 4 5.8 CLIENT's Insurance 4 5.9 Litigation Assistance 4 5.10 Changes 4 ARTICLE 6. GENERAL LEGAL PROVISIONS 5 6.1 Authorization to Proceed 5 6.2 Reuse of Project Documents 5 6.3 Delay � 5 6.4 Limitations of Liability 5 6.5 Termination 5 6.6 Suspension, Delay, or Interruption of Work 5 6.7 No Third -Party Beneficiaries 5 6.8 Indemnification 5 6.9 Assignment 6 6.10 Waiver 6 6.11 Jurisdiction 6 6.12 Severability and Survival 6 6.13 Materials and Samples 6 6.14 CH2M HILL's Deliverables 6 6.15 Dispute Resolution 6 ARTICLE 7. ATTACHMENTS, SCHEDULES, AND SIGNATURES ..................................................................... 6 ATTACHMENTA ................................................................................................................................................. A-1 I . Construction Obligations A-1 2. Safety A -I 3. Warranties and Completion A-1 4. Unknown Conditions A-1 5. Substantial Completion A-1 7. Site A-2 8. Substantial Completion, Acceptance, and Final Payment A-2 INC MSA TABLE OF CONTENTS VERSION 2-03 CH2MHILL STANDARD MASTER AGREEMENT FOR PROFESSIONAL SERVICES This Agreement, effective this day of 20 , for a period of 5 years, is between: CLIENT: City of Vernon 4305 S. Santa Fe Ave Vernon, CA 90058 and C112M HILL, INC., ("CH2M HILL") 9191 S. Jamaica Street P. 0. Box 22508 Englewood, Colorado 80112 Denver, CO 80222-0508 for services to be performed on a Task Order basis with respect to: Environmental and engineering support services in as requested by the City of Vernon ARTICLE 1. SERVICES GENERALLY CH2M HILL shall furnish such engineering and related services, construction management, and subject to the provisions of Paragraph 6.9. 1, perform such construction work as CLIENT may request from time to time ("Services"). The particular project ("Project"), specific Services, work schedule, and cost or estimated cost will be mutually agreed and set forth in a Task Order issued by CLIENT under this Agreement. Each Task Order will specifically refer to and incorporate this Agreement by reference. The provisions of this Agreement and of Attachment A shall apply to Task Orders requiring construction. ARTICLE 2. COMPENSATION For performance of the Services, CLIENT will compensate CH2M HILL pursuant to the Compensation Schedule identified in Article 7, if any, and to the pertinent Task Order. ARTICLE 3. TERMS OF PAYMENT 3.1 Invoices CH2M HILL will submit invoices for each Task Order to CLIENT each month covering Services completed to date and, and as applicable, for materials and equipment delivered and stored on -site or off -site. Each invoice will be prepared in CH2M HILL's standard form and supported by documentation according to CH2M HILL's standard practice. Within 10 days of receipt of the invoice, CLIENT shall give detailed, written notice of any sums which it may reasonably dispute or contest. If the parties are unable to resolve the matter within 15 days, only that portion so reasonably contested may be withheld from payment. 3.2 Time of Payment Invoices are due and payable within 30 days after receipt by CLIENT. 3.3 Delay in Payment If CLIENT fails to pay CH2M HILL within 30 calendar days after receipt of any invoice, CH2M HILL will be entitled any or all to the following: 3.3.1 Interest CLIENT will be charged interest at the rate of 1- 1/2% per month, or that permitted by law if lesser, on all past -due amounts starting 30 calendar days after receipt of invoice. Payments will first be credited to interest and then to principal. 3.3.2 Suspension of Work If CLIENT fails to make payment in full within 30 calendar days of the date due for any undisputed billing, CH2M HILL may, after giving 7 calendar days'written notice to CLIENT, suspend services under this Agreement until paid in full, including interest. In the event of suspension of services, CH2M HILL will have no liability to CLIENT for delays or damages caused by CLIENT because of such suspension. CH2M HILL shall be entitled to an adjustment in compensation and the work schedule for the affected Task Order pursuant to Article 6.3. INC MSA VERSION 2-03 ARTICLE 4. OBLIGATIONS OF C112M HILL 4.1 Independent Contractor; Subcontracts 4.1.1 CH2M HILL represents that it is an independent contractor and will perform services pursuant to each Task Order as an independent contractor and not as an agent or employee of CLIENT. 4.1.2 CH2M HILL may retain such other subconsultants or subcontractors as it may deem desirable for proper and timely performance of Services. CH2M HILL shall be responsible for the management of the subcontractors and subconsultants in the performance of their work. 4.2 Standard of Care The standard of care applicable to CH2M HILL's engineering or related services will be the degree of skill and diligence normally employed by professional engineers or consultants performing the same or similar Services at the time said services are performed. CH2M HILL will reperform any engineering or related services not meeting this standard without additional compensation. 4.3 Subsurface Investigations In soils, foundation, groundwater, and other subsurface investigations, the actual characteristics may vary significantly between successive test points and sample intervals and at locations other than where observations, exploration, and investigations have been made. Because of the inherent uncertainties in subsurface evaluations, changed or unanticipated underground conditions may occur that could affect total Task Order cost and/or execution. These conditions and cost/execution effects are not the responsibility of CH2M HILL. 4.4 C112M HILL's Personnel at Construction Site 4.4.1 The presence or duties of CH2M HILL's personnel at a construction site, whether as onsite representatives or otherwise, do not make CH2M HILL or CH2M HILL's personnel in any way responsible for those duties that belong to CLIENT and/or the construction contractors or other entities, and do not relieve the construction contractors or any other entity of their obligations, duties, and responsibilities, including, but not limited to, all construction methods, means, techniques, sequences, and procedures necessary for coordinating and completing all portions of the construction work in accordance with the construction contract documents and any health or safety precautions required by such construction work. 4.4.2 CH2M HILL and CH2M HILL's personnel have no authority to exercise any control over any construction contractor or other entity or their employees in connection with their work or any health or safety precautions and have no duty for inspecting, noting, observing, correcting, or reporting on health or safety deficiencies of the construction contractor(s) or other entity or any other persons at the site except CH2M HILL's own personnel. 4.4.3 The presence of CH2M HILL's personnel at a construction site is for the purpose of providing to CLIENT a greater degree of confidence that the completed construction work will conform generally to the construction documents and that the integrity of the design concept as reflected in the construction documents has been implemented and preserved by the construction contractor(s). CH2M HILL neither guarantees the performance of the construction contractor(s) nor assumes responsibility for construction contractor's failure to perform work in accordance with the construction documents. 4.5 Opinions of Cost, Financial Considerations, and Schedules In. providing opinions of cost, financial analyses, economic feasibility projections, and schedules for the Project, CH2M HILL has no control over cost or price of labor and materials; unknown or latent conditions of existing equipment or structures that may affect operation or maintenance costs; competitive bidding procedures and market conditions; time or quality of performance by operating personnel or third parties; and other economic and operational factors that may materially affect the ultimate Project cost or schedule. Therefore, CH2M HILL makes no warranty that CLIENT's actual Project costs, financial aspects, economic feasibility, or schedules will not vary from CH2M HILL's opinions, analyses, projections, or estimates. If CLIENT wishes greater assurance as to any element of Project cost, feasibility, or schedule, CLIENT will employ an independent cost estimator, contractor, or other appropriate advisor. 4.6 Construction Progress Payments Recommendations by CH2M HILL to CLIENT for periodic construction progress payments to the construction contractor(s) will be based on CH2M HILL's knowledge, information, and belief from selective sampling that the work has progressed to the point indicated. Such recommendations do not represent that continuous or detailed examinations have been made by CH2M HILL to ascertain that the construction contractor(s) have completed the work in exact accordance with the construction documents; that the final work will be acceptable in all respects; that CH2M HILL has made an examination to ascertain how or for what purpose the construction contractor(s) have used the moneys paid; that title to any of the work, materials, or equipment has passed to CLIENT free and clear of liens, claims, security INC MSA VERSION 2-03 interests, or encumbrances; or that there are not other matters at issue between CLIENT and the construction contractors that affect the amount that should be paid. 4.7 Record Drawings Record drawings, if required, will be prepared, in part, on the basis of infori-nation compiled and furnished by others, and may not always represent the exact location, type of various components, or exact manner in which the Project was finally constructed. CH2M HILL is not responsible for any errors or omissions in the information from others that is incorporated into the record drawings. 4.8 Access to C112M HILL's Accounting Records CH2M HILL will maintain accounting records, in accordance with generally accepted accounting principles. Records relating to a Task Order will be available to CLIENT during CH2M HILL's normal business hours for a period of I year after CH2M HILL's final invoice pursuant to that Task Order for examination to the extent required to verify the direct costs (excluding established or standard allowances and rates) incurred hereunder. Only audit cost -reimbursable items will be subject to audit. 4.9 C112M HILL's Insurance 4.9.1 CH2M HILL will maintain throughout this Agreement the following insurance: (a) Worker's compensation employer's liability insurance as required by the state where the work is performed and Employer's Liability with a limit of $ 1,000,000. (b) Comprehensive automobile and vehicle liability insurance covering claims for injuries to members of the public and/or damages to property of others arising from use of motor vehicles, including onsite and offsite operations, and owned, nonowned, or hired vehicles, with $1,000,000 combined single limits. (C) Commercial general liability insurance covering claims for injuries to members of the public or damage to property of others arising out of any covered negligent act or omission of CH2M HILL or of any of its employees, agents, or subcontractors, with $ 1,000,000 per occurrence and in the aggregate. (d) When furnishing engineering or engineering related services, professional liability insurance of $1,000,000 per occurrence and in the aggregate. (e) When performing construction, Builder's Risk All Risk as described in Paragraph 5.8.3. 4.9.2 CLIENT will be named as an additional insured with respect to CH2M HILL's liabilities hereunder in insurance coverages identified in items (b), (c) and (e) and CH2M HILL waives subrogation against CLIENT as to said policies. All insurance certificates will provide that the insurance carrier will give CLIENT 30 days' notice of cancellation of the policies. ARTICLE 5. OBLIGATIONS OF CLIENT 5.1 Client -Furnished Data CLIENT will provide to CH2M HILL all data in CLIENT's possession relating to CH2M HILL's Services. CH2M HILL will reasonably rely upon the accuracy, timeliness, and completeness of the information provided by CLIENT. 5.2 Access to Facilities and Property CLIENT will make its facilities accessible to CH2M HILL as required for CH2M HILL's performance of its services and will provide labor and safety equipment as required by C112M HILL for such access. CLIENT will perform, at no cost to CH2M HILL, such tests of equipment, machinery, pipelines, and other components of CLIENT's facilities as may be required in connection with CH2M HILL's services. 5.3 Advertisements, Permits, and Access Unless otherwise agreed to in the Task Order, CLIENT will obtain, arrange, and pay for all advertisements for bids; permits and licenses required by local, state, or federal authorities; and land, easements, rights -of -way, and access necessary for CH2M HILL's services or Project construction. 5.4 Timely Review CLIENT will examine CH2M HILL's studies, reports, sketches, drawings, specifications, proposals, and other documents; obtain advice of an attorney, insurance counselor, accountant, auditor, bond and financial advisors, and other consultants as CLIENT deems appropriate; and render in writing decisions required by CLIENT in a timely manner. INC MSA VERSION 2-03 5.5 Prompt Notice CLIENT will give prompt written notice to CH2M HILL whenever CLIENT observes or becomes aware of any development that affects the scope or timing of CH2M HILL's Services, or of any defect in the work of CH2M HILL or construction contractors. 5.6 Asbestos or Hazardous Substances 5.6.1 If asbestos or hazardous substances in any form are encountered or suspected, CH2M HILL will stop its own work in the affected portions of the Project to permit testing and evaluation. 5.6.2 If asbestos is suspected, CH2M HILL will, if requested, manage the asbestos remediation activities using a qualified subcontractor at an additional fee and contract terms to be negotiated. 5.6.3 If hazardous substances other than asbestos are suspected, CH2M HILL will, if requested, conduct tests to determine the extent of the problem and will perform the necessary studies and recommend the necessary remedial measures at an additional fee and contract terms to be negotiated. 5.6.4 Client recognizes that CH2M HILL assumes no risk and/or liability for a waste or hazardous waste site originated by other than CH2M HILL. 5.7 Contractor Indemnification and Claims 5.7.1 CLIENT agrees to include the following in all construction contracts with contractors not affiliated with CH2M HILL: (a) the provisions of Article 4.4, CH2M HILL's Personnel at Construction Site,: (b) the provisions of Article 5.7.3 regarding direct actions against CH2M HILL; (c) and provisions providing contractor indemnification of CLIENT and CH2M HILL for contractor's negligence. 5.7.2 CLIENT shall require construction contractor(s) to name CLIENT and CH2M HILL as additional insureds on the contractor's general liability insurance policy. 5.7.3 CLIENT agrees to include the following clause in all contracts with equipment or materials suppliers: Contractors, subcontractors, and equipment and material suppliers on the Project, or their sureties, shall maintain no direct action against C112M HILL, CH2M HILL's officers, employees, affiliated corporations, and subcontractors for any claim arising out of, in connection with, or resulting from the CH2M HILL services performed. CLIENT will be the only beneficiary of any undertaking by CH2M HILL." 5.8 CLIENT's Insurance 5.8.1 CLIENT will maintain property insurance on all pre-existing physical facilities associated in any way with the Project. 5.8.2 CLIENT will provide for a waiver of subrogation as to all Client -carried property damage insurance, during construction and thereafter, in favor of CH2M HILL, CH2M HILL's officers, employees, affiliates, and subcontractors. 5.8.3 CLIENT will provide (or have the construction contractor(s) provide) a Builders Risk All Risk insurance policy for the full replacement value of all Project work including the value of all onsite CLIENT -furnished equipment and/or materials associated with CH2M HILL's services. Such policy will include coverage for loss due to defects in materials and workmanship and errors in design, and will provide a waiver of subrogation as to CH2M HILL and the construction contractor(s) (or CLIENT), and their respective officers, employees, agents, affiliates, and subcontractors. CLIENT will provide CH2M HILL a copy of such policy. 5.9 Litigation Assistance Article 1, Services Generally, does not include costs of C112M HILL for required or requested assistance to support, prepare, document, bring, defend, or assist in litigation undertaken or defended by CLIENT. All such Services required or requested of CH2M HILL by CLIENT, except for suits or claims between the parties to this Agreement, will be reimbursed as mutually agreed. 5.10 Changes CLIENT may make or approve changes within the scope of Services under a Task Order. If such changes affect CH2M HILL's cost of or time for perforriance of the Services, an equitable adjustment will be made through an amendment to the affected Task Order. ING MSA VERSION 2-03 ARTICLE 6. GENERAL LEGAL PROVISIONS 6.1 Authorization to Proceed Execution of the Task Order by CLIENT will be authorization for CH2M HILL tb proceed with the Services, unless otherwise provided in the Task Order. 6.2 Reuse of Project Documents All reports, drawings, specifications, documents, and other deliverables of CH2M HILL, whether in hard copy or in electronic form, are instruments of service for the pertinent Task Order, whether the Task Order is completed or not. CLIENT agrees to indemnify CH2M HILL and CH2M HILL's officers, employees, subcontractors, and affiliated corporations from all claims,,damages, losses, and costs, including, but not limited to, litigation expenses and attorney's fees arising out of or related to the unauthorized reuse, change or alteration of these Task Order documents. 6.3 Delay In the event CH2M HILL is delayed in performance of Services by any act or neglect of CLIENT or anyone for whom CLIENT is responsible or by Acts of God, strikes, lockouts, accidents, or other events beyond the control of CH2M HILL, then CH2M HILL's compensation and the work schedule for the affected Task Order shall be equitably adjusted. In the event delays to the Task Order work is encountered for any reason, the parties agree to undertake reasonable steps to mitigate the effect of such delays. 6.4 Limitations of Liability 6.4.1 To the maximum extent permitted by law, CH2M HILL's liability for CLIENT's damages under any Task Order will not, in the aggregate, exceed the Task Order value, whether such liability arises out of breach of contract or warranty, tort including negligence, strict or statutory liability, or any other cause of action, 6.4.2 To the maximum extent permitted by law, CH2M HILL and CH2M HILL's affiliated corporations, officers, employees, and subcontractors shall not be liable for CLIENT's special, indirect, or consequential damages, whether such damages arise out of breach of contract or warranty, tort including negligence, strict or statutory liability, or any other cause of action. In order to protect CH2M HILL against indirect liability or third - party proceedings, CLIENT will indemnify CH2M HILL for any such damages. 6.4.3 This article takes precedence over any conflicting article of this Agreement or any document incorporated into it or referenced by it. 6.5 Termination 6.5.1 This Agreement may be terminated for convenience on 30 calendar days'written notice, or for cause if either party fails substantially to perform through no fault of the other and does not commence correction of such nonperformance within 5 calendar days of written notice and diligently complete the correction thereafter. 6.5.2 On termination, CH2M HILL will be paid for all authorized Services performed up to the termination date plus termination expenses, such as, but not limited to, reassignment of personnef, subcontract termination costs, and related closeout costs. 6.6 Suspension, Delay, or Interruption of Work CLIENT may suspend, delay, or interrupt the Services of CH2M HILL under a Task Order for the convenience of CLIENT. In such event, CH2M HILL's compensation and the work schedule for the affected Task Order shall be equitably adjusted. 6.7 No Third -Party Beneficiaries This Agreement gives no rights or benefits to anyone other than CLIENT and CH2M HILL and has no third -party beneficiaries. 6.8 Indemnification 6.8.1 CH2M HILL agrees to indemnify CLIENT for any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage or bodily injury, including death, to the proportionate extent caused by the negligence or willful misconduct of CH2M HILL, CH2M HILL's employees, affiliated corporations, and subcontractors in connection with Services performed under Task Order issued hereunder. 6.8.2 Client agrees to indemnify CH2M HILL from any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage or bodily injury, including death, to the proportionate extent caused by the negligence or willful misconduct of CLIENT, or its employees or contractors in connection with Task Orders issued hereunder. INC MSA VERSION 2-03 6.9 Assignment 6.9.1 CH2M HILL represents that it performs construction only to the extent to which the construction is ancillary to other work under a Task Order, and that an affiliated company is authorized and qualified to perform substantial construction. When, in CH2M HILL's sole opinion, work under a Task Order constitutes substantial construction, CH2M HILL will assign the Task Order and all of its rights and obligations thereunder to its affiliate. CLIENT shall accept such assignment and release CH2M HILL from any obligation whatsoever with respect to that Task Order. 6.9.2 Except as provided in Paragraph 6.9. 1, this Agreement and Task Orders issued pursuant to it are bilateral personal services agreements. Neither party shall have the power to or will assign any of the duties or rights or any claim arising out of or related to this Agreement or Task Order issued pursuant to it, whether arising in tort, contract or otherwise, without the written consent of the other party. Any unauthorized assignment is void and unenforceable. These conditions and the entire Agreement are binding on the heirs, successors, and assigns of the parties hereto. 6.10 Waiver CLIENT waives all claims against CH2M HILL, including those for latent defects, that are not brought within 2 years of substantial completion of the facility designed or final payment to CH2M HILL, whichever is earlier or, in the event of a Task Order requiring substantial construction, within two years after expiration of the warranty period. 6.11 Jurisdiction The substantive law of the state of the Task Order Services shall govern the validity of this Agreement, its interpretation and performance, and any other claims related to it. 6.12 Severability and Survival If any of the provisions of this Agreement are held for any reason to be invalid, illegal, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. Limitations of liability, inderimities, and other express representations shall survive termination of this Agreement for any cause. 6.13 Materials and Samples Any items, substances, materials, or samples removed from the Project site for testing, analysis, or other evaluation will be returned to the Project site within 60 calendar days of Task Order close-out unless agreed to otherwise. CLIENT recognizes and agrees that C142M HILL is acting as a bailee and at no time assumes title to said items, substances, materials, or samples. 6.14 C112M HILL's Deliverables CH2M HILL's deliverables, including record drawings, are limited to the sealed and signed hard copies. Computer - generated drawing files furnished by CH2M HILL are for CLIENT or others' convenience. Any conclusions or information derived or obtained from these files will be at user's sole risk. 6.15 Dispute Resolution The parties will use their best efforts to resolve amicably any dispute, including use of alternative dispute resolution options. ARTICLE, 7. ATTACHMENTS, SCHEDULES, AND SIGNATURES This Agreement, including its attachments and schedules, constitutes the entire Agreement, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. Attachments and schedules on the date of contracting: Attachment A Construction Supplement IN WITNESS WHEREOF, the parties execute below: For CLIENT: LIM INC MSA VERSION 2-03 Name For CH2M HILL INC.: By: Name Name Title INC MSA VERSION 2-03 ATTACHMENT A CONSTRUCTION SUPPLEMENT The parties agree that the following terms and conditions shall supplement the terms and conditions of the Agreement when a Task Order requires CH2M HILL to perform construction work. In the event of ambiguity or conflict with the terms and conditions of the Agreement, these provisions shall govern. 1. Construction Obligations CH2M HILL shall fumish all supervision and labor, materials, tools, equipment, unloading, taxes, insurance and other things necessary to perform and complete the Task Order. 2. Safety CH2M HILL shall take necessary precautions for the safety of its employees on the Project, and shall comply with all applicable provisions of federal, state and municipal safety laws to prevent accidents or injury to persons on, about or adjacent to the site. CH2M HILL, directly or through its Subcontractors, shall erect and properly maintain at all times, as required by the conditions and progress of the Task Order, necessary safeguards for the protection of workers and the public. CH2M HILL, however, shall not be responsible for the elimination or abatement of safety hazards created or otherwise resulting from work at the site carried on by CLIENT or its employees, agents, separate contractors or tenants. CLIENT agrees to cause its employees, agents, separate contractors and tenants to abide by and fully adhere to all applicable provisions of federal, state and municipal safety laws and regulations. The above provision shall not relieve CH2M HILL's subcontractors of their responsibility for the safety of persons or property in the performance of their work, nor for compliance with all applicable provisions of relevant laws. 3. Warranties and Completion CH2M HILL warrants that all materials and equipment furnished under this Agreement and the pertinent Task Order will be new unless otherwise specified, of good quality, in conformance with the Contract Documents, and free from defective workmanship and materials. Warranties shall commence on the date of Substantial Completion of the Task Order or of a designated portion. CH2M HILL agrees to correct all construction performed under this Agreement which proves to be defective in workmanship and materials within a period of one year from the date of Substantial Completion or for such longer periods of time as may be set forth with respect to specific warranties required by the Contract Documents. Those products, equipment, systems or materials incorporated in the Task Order at the direction of or upon the specific request of CLIENT shall be covered exclusively by the warranty of the manufacturer. There are no warranties that extend beyond the description on the face thereof. All other warranties, express or implied, including any warranty of merchantability and any warranty of fitness for a particular purpose are expressly disclaimed. 4. Unknown Conditions If in the performance of the Work CH2M HILL finds latent, concealed or subsurface physical conditions which differ from the conditions CH2M HILL reasonably anticipated, or if physical conditions are materially different from those normally encountered and generally recognized as inherent in the kind of work provided for in this Agreement, then CH2M HILL's compensation and the work schedule of the affected Task Order shall be equitably adjusted by written amendment to the Task Order within a reasonable time after the conditions are first observed. 5. Substantial Completion Unless a date for Substantial Completion is previously agreed, when the drawings and specifications are sufficiently complete, the parties shall establish a date of Substantial Completion and any agreed schedule shall be updated to reflect such a date. CLIENT and CH2M HILL recognize that time is important in the performance of this Agreement and that CLIENT will enjoy substantial benefit if the Task Order is completed by the Substantial Completion date set forth in any agreed schedule. CH2M HILL shall use its best efforts to complete Services pursuant to each Task Order by the Substantial Completion date. Substantial Completion of the Services, or of a designated portion, occurs on the date when construction is sufficiently complete in accordance with the Contract Documents so that CLIENT can occupy or utilize the Project, or a designated portion, for the use for which it is intended. INC MSA- CONSTRUCTION SUPPLEMENT A-1 VERSION 2-03 6. Liens CH2M HILL will promptly pay for all services, labor, material and equipment used or employed in performance of any Task Order and will maintain the Project free and clear of Liens arising from its work. CLIENT will promptly give CH2M HILL a copy of any Notice of Lien or claim received by CLIENT from any subcontractor or supplier engaged by CH2M HILL or any of its subcontractors prior to final payment. As requested, CH2M HILL will furnish certification that all 'of its obligations on the Project have been satisfied and that all claims and indebtedness have been paid. 7. Site CLIENT will obtain, arrange and secure at its own expense all permits, licenses, approvals, legal or administrative orders, deposits, land, easements, rights -of -way, and access necessary for CH2M HILL to perform the Task Order. CH2M HILL may rely upon the accuracy of soils reports, subsurface investigations, legal limitations and legal descriptions, and any other information provided by CLIENT. CLIENT shall furnish such information in its possession as CH2M HILL may request and shall immediately transmit to CH2M HILL any new information and any changes in plans resulting from such information. CLIENT shall be responsible for the location of any installation or underground utilities. 8. Substantial Completion, Acceptance, and Final Payment 8(a). Substantial Completion CH2M HILL will notify CLIENT when the construction work is substantially complete. Within 5 business days, CLIENT shall inspect the work and furnish a certificate of acceptance or notify CH2M HILL in writing of any work requiring completion or correction. Upon Substantial Completion, CLIENT shall pay CH2M HILL the unpaid balance of the Task Order price, less a sum equal to CH2M HILL's estimated cost of completing any unfinished items. Each month thereafter, CLIENT shall pay CH2M HILL the amount retained for unfinished items as each item is completed. 8(b). Acceptance and Final Payment Within five business days after receiving notice from CH2M HILL that the work is completed or corrected, CLIENT will issue a certificate of acceptance. Final payment will be due within 15 days after the certificate of acceptance is issued. CH2M HILL shall be relieved of any further responsibility for the Services under the Task Order except for reperformance pursuant to Paragraph A3 of this Construction Supplement. If CLIENT fails to issue such certificate or notice within the specified time, the Services under the Task Order shall be deemed to be accepted for all purposes hereunder. 8(c). Waiver of Claims Final payment shall constitute a waiver of all claims by Owner except those previously made in writing and identified by Client as unsettled at the time of acceptance and those arising during the warranty period pursuant paragraph A3. Acceptance of final payment shall constitute waiver of all claims by CH2M HILL except those previously made in writing. INC MSA - CO ' NSTRUCTION SUPPLEMENT A-2 VERSION 2-03 TASK ORDER NO. i nis i asK uraer is issuea pursuant to the Standard Master Agreement for Professional Services dated: which is incorporated herein by this reference, with respect to I ("Pr�ject"). Specific Services: Compensation Provisions: Work Schedule: The Authorized Representatives designated below are authorized to act with respect to the Task Order. Communications between the parties shall be between parties and their consultants or subcontractors shall be through the Authorized Representati es: For the Client: —For ­­CH2M HILL Name: Name: I Address: Address: I Telephone: Telephone This Task Order No. is effective this (date) Accepted for CH2M HILL by: Accepted for Cient by - Name Name Title Title INC MSA TASK ORDER VERSION 2-03 ATTACHMENT ENVIRONMENTAL REMEDIATION SUPPLEMENT Client and CH2M HILL agree that the following provisions supplement the provisions of the Agreement and of Attachment A when a Task Order requires remediation construction. 1.0 Additional Obligations of Client 1.1 Client's Warranties 1.1.1 Title to Wastes; No Violation Client warrants that it holds clear title to all wastes to be treated, stored and/or disposed and is under no legal restraint or order which would prohibit the treatment, storage and/or disposal of such wastes by any transporter or disposal facility. Client further warrants that the Work to be performed by CH2M HILL does not violate any final court order or any final ruling of any governmental agency of which Client has knowledge. 1.1.2 Furnished Data Client represents that it has furnished to CH2M HILL full and complete information regarding the requirements of the Work including, without limitation, soils reports, subsurface investigations, legal limitations and legal descriptions. CH2M HILL may rely upon the accuracy of this and any other information provided by Client. Client shall furnish such information in its possession as CH2M HILL may request and shall immediately transmit to CH2M HILL any new information and any changes in plans resulting from such information. 1.1.3 Rights of Way Client warrants that any right-of-way provided by Client to/from the Site and to/from the most convenient public way is sufficient to bear the weight of all of CH2M HILL's equipment and vehicles reasonably required to perform the Work. CH2M HILL shall not be responsible for any changes required to be made to any private pavement or accompanying subsurface of any route for its performance of the Work, unless otherwise specifically agreed. The reasonable cost of any repairs to roadways and rights -of -way arising out of the normal wear and tear resulting from CH2M HILL's use thereof by its equipment during the performance of the Work shall be reimbursable under Article 6.3. 1.2 Reporting If Laws/Regulations require Client to report the results of any Work, Client shall be responsible for all such reporting and shall indemnify and hold CH2M HILL harmless from any fines, penalties, assessments or other costs, including reasonable attorney fees, resulting from Client's failure to report. 1.3 Underground Utilities Client shall be responsible for the location of any installation or underground utilities. 1.4 Additional Indemnification Client shall indemnify and hold harmless CH2M HILL, its directors, officers, employees, agents and subcontractors against any and all liabilities, costs, or expenses, including reasonable attorney's fees, for claims, demands and/or causes of action asserted and/or filed by third persons not parties to this Agreement, arising out of or as a result of: The presence of CH2M HILL or its subcontractors on the Site; 2. The completed Work by CH2M HILL, except to the extent that such liabilities, claims, demands, causes of action, costs and expenses are caused by the negligence of CH2M HILL, its directors, officers, agents, employees or subcontractors; ENVIRONMENTAL REMEDIATION SUPPLEMENT TO INC MSA VERSION 2-03 Soil, air, surface and ground -water pollution, gas or contamination emanating from the site; 4. Transportation and disposal of waste streams and residue; Any liability arising out of Client's statutory status as generator of the waste streams, which status is expressly retained by Client. 2.0 Safety The following provisions supplement the requirements of Paragraph A2 of Attachment A: 2.1 Disclosure Performance of the Work may require disclosure pursuant to Laws/Regulations. If CH2M HILL determines that reporting is required, it will give Client notice. Nothing contained in this paragraph shall be construed to impose on CH2M HILL any obligation to report the foregoing matters. 2.2 Client's Responsibility All directions by Client shall comply with laws/regulations. If CH2M HILL believes that compliance with any direction by Client would violate any Laws/Regulations, then CH2M HILL shall not be required to comply with it and shall so advise Client. If Client fails to modify its directions within 10 days after CH2M HILL's notice to Client or if Client fails to report to governmental authorities any matter which Client is required by Laws/Regulation to report, then C112M HILL shall have the right to suspend the Work, which delay shall be attributable to Client, or to terminate the Agreement pursuant to Article 6.5 of the Agreement. 2.3 Other Contractors; Waiver If Client contracts with others for the performance of other work on the site, Client will specify in writing the extent of authority of each contractor. CH2M HILL will not be responsible for procedures or adequacy of health and safety measures of such other contractors. If CI-12M HILL observes any employee of any other such contractor engaging in an act or procedure which could result in injury or death or which CH2M HILL believes to violate any applicable Law or Regulation and such condition persists after it is brought to Client's attention, then upon notice to Client, CH2M HILL and its subcontractors shall have the right to cease all work on the Project until the condition is corrected. CH2M HILL will not be liable for any cost or expense resulting from such work stoppage and Client waives, on behalf of itself and other contractors on the site with whom it has contracted, any claim against CH2M HILL with respect to same. 3.0 Changes in Laws If changes in Laws/Regulations not known or foreseeable on the date of receipt of proposals have an effect on the cost or time of performance, the price and time for performance of the Task Order shall be equitably adjusted pursuant to Article 5. 10 of the Agreement. 4.0 Warranty The following sentence replaces the first sentence of Article 4.2 of the Agreement: CH2M HILL will perform the Work in compliance with applicable Laws/ Regulations and according to practices observed by other remediation design or construction firms performing similar work. 5.0 Limitation of Scope of Services Client acknowledges that, except to the extent included in the Work, CH2M HILL has had no role in generating, treating, storing or disposing of Hazardous Materials which may be present at the Project Site and CH2M HILL has not benefited from the processes that produced such Hazardous Materials. No Hazardous Materials encountered by CH2M HILL in performing, or associated with, the Work shall at any time be or become the property of CH2M HILL. Any arrangements made by CH2M HILL for the treatment, storage, transport or disposal of any hazardous materials are made solely and exclusively for the benefit of Client using Client's EPA generator identification number(s) when required and shall not result in any liability of CH2M HILL under this agreement or with respect t"he hazardous materials. Client shall handle all hazardous materials in compliance with applicable laws and regulations and shall sign manifests and obtain generator identification numbers when required by laws and regulations. If required by the contract documents, CH2M HILL shall furnish the names of facilities currently licensed to accept hazardous materials, but it shall be Client's sole responsibility to select those to be engaged. Nothing contained in this Agreement shall confer on CH2M HILL the status of (a) a generator, Storer, disposer or treater of Hazardous Materials, (b) the party who arranged for the disposal Of Hazardous Materials, or (c) a Hazardous Materials disposal facility, as provided in any Law or Regulation. ENVIRONMENTAL REMEDIATION SUPPLEMENT TO INC MSA VERSION 2-03 6.0 Insurance CH2M HILL shall furnish the insurance coverage stated below in addition to that set forth in Article 4.9 of the Agreement: Contractor's Pollution Liability of $ 1,000,000 each claim and in the aggregate. 7.0 Hazardous Materials The provisions of Paragraph A4 of Attachment A shall apply to non -hazardous materials and to Hazardous Materials which are not identified in the Contract Documents as objects of remediation. 8.0 Hazardous Materials means asbestos, PCB's, petroleum, radioactive material and any other toxic substances, in whatever form or states that is known or suspected to adversely effect the health and safety of humans or of animal or plant organisms, or which are known or suspected to impair the environment in any way whatsoever and shall include but not be limited to substances with the meanings provided in Section 4004 of the Solid Waste Disposal Act (42 USC 6903); Section 9601(14) of the Comprehensive Environment ' al Response, Compensation and Liability Act (42 USC 9601(14); as listed or designated under Sections 1317 and 1321(b)(2)(a) of Title 33 (33 USC 1317 and 1321(b)(2)(a)) or as defined, designated or listed under United States OSHA any other Federal, State or local law, regulation or ordinance concerning hazardous materials. 9.0 Law/Regulations are any applicable laws, rules, regulations, ordinances, codes or orders of any and all governmental bodies, agencies, authorities and courts having jurisdiction. ENVIRONMENTAL REMEDIATION SUPPLEMENT TO INC IVISA VERSION 2-03 CH2M HILL 2485 Natomas Park Drive Suite 600 Sacramento, CA 95833-2937 Tel 916.920.0300 Fax 916.920.8463 November 7,2008 Donal O'Callaghan Director of Light and Power City of Vernon 4305 S. Santa Fe Ave Vernon, CA 90058 Subject: Proposal for Licensing a Wind Energy Development in the Kelso Valley Area, Part I Dear Mr. O'Callaghan: CH2M HILL is pleased to present this proposal to the City of Vernon to provide ongoing support for the development of a wind energy project in the Kelso Valley, Kern County, where the City recently purchased approximately 30,000 of land suitable for wind development. This proposal presents a brief discussion of our technical approach and proposed budget to support development of the project description (for permitting), provide further evaluation of the suitability of existing resource studies, develop a program for collection of avian survey data, initate meetings with resources agencies and Kern County, develop future scopes for conducting environmental review activities, and provide on -call and project management support. This proposal covers CH2M HILL efforts to support the project over the next 12 months. Once the technology and layout for the wind project is determined, a separate proposal will be prepared to complete the fieldwork, environmental review, and licensing support to conform to the appropriate regulations. Additionally, once the agencies have approved the bat and avian survey protocol and methodology for evaluating potential impacts, a separate proposal will be prepared to conduct the bat and avian surveys. CH2M HILL has been supporting the City of Vernon since 2005with the development and CEC permitting of the Southeast Regional Energy Center (SEREC). CH2M HILL also supported the City's initial efforts related to the recent acquisition of lands in the Tehachapi Mountains with the expectation that the City will develop these lands with renewable energy generating resources. Mr. Donal O'Callaghan November 7, 2008 Page 2 Project Understanding The City of Vernon (City) has recently purchased about 30,000 acres of land in the Kelso Valley, Kern County, California for development of a wind energy generating project. CH2M HILL is familiar with the key issues associated with wind energy developments, as well as the expectations of key environmental agencies/ reviewers, such as the BLM, USFWS, CDFG, CEC, and Kern County. This experience will allow us to quickly focus on key issues that will need to be addressed prior determining a site layout, generation technology, initiating environmental review, and permitting. Consistent with the existing CH2M HILL support to the City of Vernon, John Carrier will continue to be the overall Program Manager to assure project success and continuity. Jennifer Scholl, a senior project manager and regulatory specialist from our Santa Barbara office with wind and solar energy project experience, will be the Project Manager for the development and implementation of the Kelso Valley Wind Energy Project. Ms. Scholl will be supported by CIUM HILL siting and licensing staff with extensive experience permitting renewable energy projects throughout California and Oregon. We plan to work as a team with representatives from the City of Vernon to assure the most efficient and effective delivery of project development activities and documentation. General Information We offer several observations that will provide value as you continue to refine and develop the project: The bat and avian field surveys will be a major undertaking. These surveys must be conducted pursuant to a prescribed protocol and the data collected will be subjected to a rigouous methodology in order to support valid statistical evaluations. These surveys will need to commence as soon as possible. Early consultation with BLM, USFWS, CDFG, and other state and federal agencies will be necessary prior initiating the bat and avian surveys. Therefore, this scope of work will focus on the development of a survey protocol, consultation with resource agencies, and development of a methodology for evaluating potential impacts to bat and avian species. Agency concurrence on survey protocol, data collection, data analysis, and reporting will be important to ensure that potential issues and concerns are addressed prior to site layout. Consultation with Kern County is advised to ensure that potential County concerns related to policy consistency, roadway usage, cumulative projects, and local agency entitlements are addressed prior to project development. Our experience with Kern County is that they are very supportive of the development of renewable projects and this support is helpful for ensuring that potential project issues are addressed at project initiation, rather than during environmental review. Mr. Donal O'Callaghan November 7,2008 Page 3 Scope of Work The following Scope of Work provides an overview of our technical approach to this project Task 1 — Project Due Diligence CH2M HILL was asked to perform the following services as part of the City's due diligence effort prior to purchasing the Kelso Valley land. Since a contract or Purchase Order has not been received, CH2M HILL has included this task in this scope of work so the budget for this effort is part of the overall intial budget of the first phase to support the wind project. Task 1.1 — EDAW Fatal Flaw Analysis Review. CH2M HILL reviewed and commented on the "Kelso Valley Wind Project Fatal Flaw Analysis" prepared by EDAW on August 2008, and commented on the study provided by the Vernon team. The purpose of the review was to identify any fatal flaw elements that may have been missed or under emphasized and to provide a general reaction to the study's completeness. Deliverables Memo describing any additional concerns not addressed by the EDAW report, delivered to Vernon in September 2008. Task 1.2 —Presence of Hazardous Materials. Since there was insufficient time to prepare a Phase I Environmental Site Assessment (ESA) of the 30,000 acre parcel by the August 29th deadline, CH2M HILL ordered a report of the hazardous materials database from EDR. CH2M HILL reviewed the EDR report to determine if there were any potential areas of concern. This work effort was not to be construed as equal to the preparation of a Phase I ESA. In addition, CH2M HILL reviewed and commented on the draft and final Phase I for the larger property prepared by Kennedy/Jenks Consultants. Deliverable • EDR report of hazardous materials within the search area from existing databases, including a summary report of key findings • Memo summararizing potential concerns identified in the draft and final Phase I report. Task 1.3 —Meeting Attendance. CH2M HILL provided a senior biologist to accompany the City of Vernon team to a meeting with the U.S. Fish and Wildlife Service (USFWS) at its Ventura, California office on August 25, 2008. CH2M HILL's project manager (John Carrier) also participated in conference calls relative to this project. Deliverables Meeting minutes from USFWS meeting and participation in conference calls during August and September 2008. Taks 1.4 —Miscellaneous Support. CH2M HILL provided miscellaneous support including GIS or technical support to the City or its attorneys (Latham & Watkins) in order to provide Mr. Donal O'Callaghan November 7,2008 Page 4 or manipulate materials, conduct analysis, or provide other support needed to properly understand potential issues associated with the project. Deliverables 0 Miscellaneous documents, maps or memos as requested by the City or its attorneys. Task 1.5 — Project Management Support. CH2M HILL provided project management and administrative support during this work effort. This included the preparation of monthly invoices and status reports, purchase and orders, scopes and budgets, and other administrative support functions. Deliverables Includes preparation of invoices and status reports, mailing of documents, and other administrative support. Task 2 — Kick-off Meeting A project team kick-off meeting to intiate the preliminary licensing effort will be held in City of Vernon offices. The purpose of this meeting will be to introduce the project team, confirm project roles and communication protocols, discuss the project location and collaborate on an acceptable plan for moving forward. This meeting will be attended by the CH2M HILL management Team (John Carrier, Jennifer Scholl, and Jessica Kinnahan) as well as key City of Vernon staff and contractors. Deliverable 0 Meeting minutes and action items. Task 3 — Project Description Development Following the project kick-off, CH2M HILL will initiate the following tasks in support of developing a detailed project description including preliminary identification of site layout constraints. These tasks include: • Coordination with the City's engineers and potential vendors. • Collection of preliminary engineering information. • Confirmation of existing and proposed potential sensitive receptors. • Identification of need for ambient noise studies in areas of known or potential residences or sensitive receptors. • Identification of existing roadway network, taking into consideration construction - related roads and roadways for delivery of heavy hauls/large loads, and locations for temporary batch plants and staging areas within the project site. Mr. Donal O'Callaghan November 7,2008 Page 5 Confirmation of Military air space requirements. Collection of maps, reports, and initial agencies contacts regarding presence of restricted military air space and potential military communication interferences. Identification of any land use entitlements required by Kern County and other state agencies. Deliverable Status of these tasks will be included in a table that will be updated weekly and distributed to the project team in advance of weekly coordinating calls/meetings. Task 4 — Land Survey Our experience is that it is very helpful to have at least the project corners and section corners surveyed so that field work and engineering design work align. The area included in this proposal is based on the data provided during the wind project due diligence phase and may need to be revised once more details are known. Task 4.1 is for the development of orthophotograhy, which is needed prior to the start of field surveys. Task 4.2 is an optional task for the preparation of a Boundary Survey for both the Wind and Solar parcels recently acquired by the City. Task 4.3 is another optional task for a Record of Survey for just the Wind property. These two subtasks are optional and the City may choose to use another vendor to provide this service. As a result, costs for completeion of a boundary survey or a Record of Survey are included as part of this scope of work and budget as optional tasks. Task 4.1— Orthophotography To assist with field work, licensing, and eventual development, CH2M HILL will have high resolution (1-foot per pixel or better) aerial photos taken of the entire project area and surrounding terrain (for future use in analyzing watersheds for storm drainage impacts). This task includes flying the project site (approximately 45,000 acres) and generating one - foot color pixel resolution orthophotos using 1"=1200' (1:14,400) color photography. To optimize resolution for future environmental impacts, the aerial photography will need to be scheduled soon to ensure acceptable visibility conditions. Deliverables: Provide digital one -foot pixel resolution geo-referenced color orthophotos of the project site (approximately 45,000 acres). Optional Task 4.2—Proliminary Boundary Survey, Wind & Solar Sites This task will include the following activities: 1) Performing a preliminary boundary survey from record data of 69 parcels of the Onyx Ranch, Properties for wind and solar projects; 2) Research of BLM, State, and Kern County records for the original General Land Office (GLO) records, Parcel Maps, Subdivisions, and Records of Survey; and, Mr. Donal O'Callaghan November 7,2008 Page 6 3) Review and analysis of all records including title reports and easements or reservations ofrecord. It is assumed that the City will provide Title Reports and copies of current vesting deeds, and easements and reservations of record. Deliverables: • Provide maps at a scale of 1"= 500' of the subject properties showing record information. The background for maps will be the orthophotography from Task 4.1 if available; if not, 1-meter pixel orthophoto from existing 2005 color photography will be used. • Provide electronic copies of CADD drawings in AutoCADD and shape files for use in GIS software. • Provide copy of record information obtained during research. • Prevailing wage will be paid for all field work under Optional Subtask 4.2. Assumptions • All work will be accomplished under the direction of a State of California Land Surveyor. • Drawing submittals will be signed by a State of California Land Surveyor. • Chain of title is not included. Optional Task 4.3— Record of Survey for Wind Parcels This optional task will include the following activities: 1) Perform a field boundary survey for the exterior of 51 parcels of the Onyx Ranch Properties for the wind project based upon exsiting information from the property purchase (we estimate that there are approximately 194 monuments that need to be found or set); 2) Research of BLM, State, and Kern County Records for the original GLO records, Parcel Maps, Subdivisions, and Records of Survey; 3) Interview adjoining land owners regarding boundary locations; 4) Field search for each property corner monument, including: a) Public Land Survey corners originally set by the GLO and the perpetuation thereof; b) Subsequent land boundary corners established by deed or map; c) Perpetuate evidence of corners found with new monuments as appropriate; d) Set new monuments at 'lost' corner locations; Mr. Donal O'Callaghan November 7,2008 Page 7 e) Review and provide analysis and calculations of all records including title reports and easements or reservations of record; and Process Record of Survey through the review of the County of Kern and file same upon approval. Deliverables Provide maps at a scale of 1"= 500' of the subject properties showing found/set comers and record information. The background for maps will be the orthophotography from Task 4.1 if available; if not, 1-meter pixel orthophoto from existing 2005 color photography will be used. Provide electronic copies of CADD drawings in AutoCADD and shape files for use in GIS software. Provide four copies of filed Record of Survey and one copy of field notes and all record information gathered during the project. Assumptions • All work will be accomplished under the direction of a State of California Land Surveyor. • Drawing submittals will be signed by a State of California Land Surveyor. • Chain of title is not included. • Prevailing wage will be paid for all field work under Optional Subtask 4.3. Task 5 — Collection & Evaluation of Existing Information As a follow-up to our review of the Critical Issues Checklist for the Kelso Valley site, CH2M HILL will develop a reference library of existing data relevant to the development, environmental review, and permitting for the wind energy project. Types of information that will be collected include: Identification and collection of other avian surveys in the region (e.g., resource agency reports, Audubon surveys) Identification of recently completed environmental reviews in the project area with relevant information (cultural, biological, geological, paleontological, water resources, noise, visual, traffic, etc.) Collection of recent pending or approved development permits and Endangered Species Act consultations. Deliverables 0 Collection of various resource documents Mr. Donal O'Callaghan November 7, 2008 Page 8 0 Summary and discussion of relevance and applicability of existing data Assumptions • Secondary data collected will be limited to reports and materials that are publicly available • A $600 budget has been included for purchase of relevant secondary materials • A coordinating meeting (conference call) will occur with City of Vernon to update the team on data collection efforts. Task 6 — Development of Bat and Avian Survey Protocol General Approach Prior to any field work, CH2M HILL will prepare field safety instructions for use by field personnel to reduce the possibility of accidents or injuries. At this time, field studies will be limited to the collection of bat and avian data and preliminary site information to support project development of a description. This scope of work does not include field surveys, it only includes those activities necessary to ensure that an approved bat and avian survey protocol and impact methodology are developed through agency consultation. To facilitate field work, high resolution aerial photographs of the project site and surrounding area (obtained in Subtask 4.1) will be used to create maps suitable for field work, mapping, and reporting. These maps will be used during agency consultation and for the future scoping of bat and avain surveys. In the future, these maps along with the use of handheld Trimblee Geo-XT global positioning units (having sub -meter accuracy) will be used during field work to record bat and avian point count locations, as well as any other points of interest identified during field studies. The use of these GPS units will save a significant amount of work in developing and recording the bat and avian survey database as well as establishing a foundation for future field studies to be conducted under a separate scope of work. Based upon past experience, developing bat and avian survey protocols consistent with the California Guidelinesfor Reducing Impacts to Birds and Batsfrom Wind Energy Development, October 2007, (Guidelines) is advisable, even though the City of Vernon will be the lead CEQA agency for future environmental review. Initiation and preparation of these Guidelines was a collaboration of the California Energy Commission (CEC) and the California Department of Fish and Game (CDFG). The Guidelines provide a science -based approach for assessing potential impacts that a wind energy project may have on bird and bat species and includes suggested measures to avoid, minimize, and mitigate identified impacts. While voluntary, CDFG and CEC encourage the use of the Guidelines for the biological assessment, mitigation, and monitoring of wind energy development projects in California. Although "voluntary," CH2M HILL recommends that the bat and avian data collection protocol conform to the Guidelines, as appropriate. These voluntary Guidelines provide information to help reduce impacts to birds and bats from wind energy projects in California. They include recommendations on preliminary Mr. Donal O'Callaghan November 7,2008 Page 9 screening of proposed wind energy project sites; pre -permitting study design and methods; assessing direct, indirect, and cumulative impacts to birds and bats in accordance with state and federal laws; developing avoidance and minimization measures; establishing appropriate compensatory mitigation; and post -construction operations monitoring, analysis, and reporting methods. The following activities will be required to facilitate the development of an accepted protocol and impact assessment methodlogy. Initial Consultation with Agencies Prior to initiating the avian and bat survey/point count effort (part of a future scope of work and budget), CH2M HILL will consult with resource agencies (USFWS, CDFG, and CEC) to ensure that the data collection effort will be sufficient to support subsequent bat and avian collision/ mortality data analysis and impact determination. CH2M HILL will schedule the meeting, most likely to be held in Sacaramento, and attendance at the meeting will include: John Carrier (Program Manager), Jennifer Scholl (Project Manager), Gary Santolo (Senior Avian Specialist), Heather Johnson (Bat Specialist), representatives from the City of Vernon (if they want to attend), and resource agencies. Development of Survey Protocol Consistent with CEC and CDFG Guidelines, standardized forms will be used to collect relevant data during each point count, including a form that identifies the weather (e.g., precipitation, fog, cloud cover, wind speed, and location) and species activities (e.g., distance to bat and avian species, flight height, and behavior), a form to describe incidental observations, including prey base, and a form to document all observed bat and avian species. In addition to these forms, a written survey protocol will be developed for review and concurrence by the resource agencies and the City. These forms and the protocol will be shared with the agencies as part of agency consultation. Point Count Locations and Development of Point Count Methodology Prior to the initiation of point counts, potential turbine corridors and optimal point count locations (those that can be accessed at all times of the year with either vehicular or foot travel access) will need to be identified. These locations will be identified on the orthophotography field maps, developed under Task 4.1. A point count methodology will be developed to adhere to the CEC/CDFG Guidelines. The methodology will entail biologists performing 20-minute counts at each identified point count location. At this time, it is assumed that 30 percent of the proposed number of turbines would dictate the number of point counts needed. As part of this task an outline identifying how the survey methodology, results, and analyses, including avian use and risk of injury and/or mortality, will be presented. In addition, a discussion of how the future bird use counts will be used as an index to the relative abundance and bird use during a defined time and area. Bird behavior, distance to bird, height of bird off ground, and length of time the bird is in the plot will also be addressed. Based upon current agency protocols, standard metrics will be Mr. Donal O'Callaghan November 7,2008 Page 10 used to evaluate the data for avian use and risk. The disussion will also address how bird use, the number of birds detected using a defined area during a defined time period (1 to 20 minutes), will be estimated. Bat Survey Methodology In addition to bird and rapture species, bat surveys will also be conducted as part of the future survey effort. These surveys will also adhere to the CEC/CDFG Guidelines and will be conducted concurrently as an avian survey. Deliverables • Meeting minutes and action items from resource agency meeting. • Survey Protocol, point count location map, survey forms, point count methodology, and outline for reporting. Assumptions • The bat and avian surveys will cover about 30,000 acres. • A $300 budget has been included for purchase of relevant secondary materials or agency copying. • The survey protocol will be developed in consultation with resource agencies and in conformance with the Guidelines. • Travel to Ventura, CA for'meetings with USFWS. Includes two trips by Jennifer Scholl and Gary Santolo, one trip for,Heather Johnson. Task 7 — Scope & Budget for CEQA Environmental Analysis Following the receipt of information collected in prior tasks, we will prepare a Scope of Work to conduct the CEQA environmental review to support the wind energy project. This scope of work will identify all remaining aspects of the environmental analyis, additional field work (as described below), analysis and preparation of administrative, draft and final CEQA documents, document coordination, agency coordination, coordination with the City of Vernon, technical editing, word processing, and reproduction for the environmental review document required for the permitting of the wind energy project with the City of Vernon as the CEQA-lead agency. At this time, it is assumed that additional field work will be needed for the following disciplines: • Biological resource surveys for wildlife, botany, and wetland/ drainage assessment (Bat and avian surveys and point count data collection will be included in this scope of work) • Cultural and paleontological resources • Traffic study to address short-term construction traffic and potential roadway concerns for heavy haul/large load delivery to the site Mr. Donal O'Callaghan November 7, 2008 Page 11 • Ambient noise surveys for known potential sensitive receptors and possible noise surveys of existing similar turbines owned by other developers • Geologic study to support future geotechnical investigation for turbine foundations/ footings • Visual resource sensitivity identification Deliverables Scope of Work, budget and schedule for performing fieldwork and preparation of the CEQA environmental document Assumptions Assumptions having to do with preparation of the CEQA study will be included in the scope of work for competion of the CEQA documents Task 8 —Miscellaneous On -Call Services This task provides a limited budget of $50,000 for other miscellaneous activities related to supporting the development of the wind energy project, conducting the data collection efforts to support the future environmental review, and/or providing information in support of project engineering. Possible on -call activities that would be included in this task are: • Additional meetings and coordination with representatives from the City • Additional agency coordination • Preparation of BLM applications (e.g., SF299, Plan of Development) • Additional data collection efforts not previously identified in this scope of work to support engineering design • Travel time to support these meetings is included in this task. Deliverables None at this time; to be developed when on -call support is requested Assumptions 0 None at this time; to be developed when on -call support is requested Task 9 — Project Management To keep the City informed and the team efforts coordinated and on schedule, we propose Mr. John Carrier, as the Program Manager and Jennifer Scholl as the Project Manager. Ms. Scholl, under the direction of Mr. Carrier, will prepare a project milestone schedule and monthly progress reports. They will participate in regular conference calls and document Mr. Donal O'Callaghan November 7, 2008 Page 12 action items so that tasks are completed according to schedule. Jennifer will also serve as the single point of contact for CH2M HILL coordinating efforts between our environmental specialists and the City. For this wind project, Jennifer Scholl will be assisted by Jessica Kinnahan, as Deputy Project Manager. Our project management team will be assisted by other support staff such as health and safety personnel (to ensure that field work is performed safely), subcontract management personnel, project accountants, and administrative assistants for project setup, invoicing, statusing, and other project management functions as needed. For the purposes of this scope of work, project management costs cover a 12-month period commencing with the notice to proceed. Deliverables • Action Item Updates for Conference Calls • Monthly Status Reports and Invoices • Contract Administration duties, as required Assumptions • Bi-weekly conference calls with the City and its engineer during the 12-month duration of this effort. • Limited travel costs for attending team coordinating meetings is included in this task. Contract Terms CH2M HILL proposes to perform this work on a time -and -materials basis under the same contract terms and conditions as under our current contract with the City. Budget Summary The proposed budget for this work is $307,300 excluding the optional tasks and $792,800 including the optional tasks. The budget is expected to cover 12-months of support consistent with the assumptions presented above and represents level of effort based upon work expected to be completed under CH2M HILL's 2008 and 2009 rates (Appendix A). This amount will not be exceeded without prior authorization from the City. Mr. Donal O'Callaghan November 7, 2008 Page 13 TABLE I Breakdown of Estimated Time and Materials Budqet Task Estimated Proposed Budget No. Description Labor Hours (including expenses) 1 Project Due Diligence 287 $50,000 2 Kick-off Meeting 28 $5,800 3 Project Description Development 196 $37,300 4 Land Survey 4.1 Orthophotography (Aerial Photography) 343 $50,400 4.2 Preliminary Boundary Survey Wind and Solar Sites 488 $77,700 (Optional) 4.3 Record of Survey for Wind Site (Optional) 1,840 $407,800 5 Collection & Evaluation of Existing Information 148 $22,000 6 Development of Avian and Bat Survey Protocol 170 $26,300 7 Scope & Budget for CEQA Environmental Review 91 $18,000 8 Miscellaneous On -Call Services 320 $50,000 9 Project Management 324 $47,500 Total without Optional Tasks 1,907 $307,300 Total with both Optional Tasks SZ, do" Note: Does not include subcontractor hours. TABLE2 2008 Expense Charges Task Unit Unit Rate ($) Subcontracts Each item Actual cost + 10% Travel Each item Actual cost Small quantity in-house reproduction Each item No cost Other Direct Expenses Each item Actual cost + 10% Overnight Mail Each item At cost First Class Mail (for large mailings only) Each item At cost Automobile Mileage (personal vehicle) Per mile $0.585a CH2M HILL -owned field equipment (e.g., GPS units) Each item At CH2M HILL's standard rate Notes: a or current federal rate Mr. Donal O'Callaghan November 7,2008 Page 14 Subcontractors To augment CH2M HILL staff, subcontractors and outside vendors may be used and will be subject to a 10 percent markup. Outside vendors will be used for providing aerial photography, assisting with the work described in Subtask 4, and the future fieldwork, reproduction of the environmental documents, identification of nearby property ownership records (if needed), and identification of past hazardous materials usage and other database searches. If you have any questions, please contact John Carrier at (916) 286-0224 or Jennifer Scholl at (805) 568-0650. Sincerely, CI-12M HILL "s, Thomas J. Horst Vice President, Industrial Systems Attachments ATTACHMENT A Vernon Wind Project - Phase I Proposed Hourly Labor Rates Functional Category Rate Period: 2008 2009 Principal $210 $219 Senior Consultant / Scientist or Program Manager $199 $208 Senior Engineer Scientist or Sr. Project Manager $181 $189 Project Engineer Scientist $137 $143 Project Surveyor $165 $172 Staff Surveyor $119 $124 Associate Surveryor $102 $107 Surveyor Technician $91 $95 Lead Engineer/Scientist $165 $172 Staff Engineer/ Scientist $119 $124 Associate Engineer/ Scientist $102 $107 Junior Engineer/ Scientist $91 $95 Senior Technician / Graphics / Drafting $102 $107 Technician / Graphics / Drafting $91 $95 Office / Clerical /Accounting $74 $77 Attachment 4.3 City of Vernon, CA Record of Survey for Wind Projects of the Onyx Ranch Properties APN Sec Township Range 153-110-04 36 T29S R35E 153-110-05 35 T29S R35E 153-120-10 31 T29S R35E 153-120-11 31 T29S R35E 153-180-09 31 T29S R36E 153-180-10 31 T29S R36E 442-010-04 1 T30S R34E 442-010-07 11 T30S R34E 442-020-02 2 T30S R34E 442-030-03 14 T30S R34E 442-030-05 13 T30S R34E 443-010-02 23 T30S R34E 443-030-16 25 T30S R34E 444-010-01 3 T30S R35E 444-010-04 2 T30S R35E 444-010-06 1 T30S R35E 444-010-08 12 T30S R35E 444-010-10 11 T30S R35E 444-010-13 10 T30S R35E 444-020-03 5 T30S R35E 444-020-09 9 T30S R35E 444-020-14 8 T30S R35E 444-020-16 7 T30S R35E 444-030-01 15 T30S R35E 444-030-08 13 T30S R35E 444-030-06 14 T30S R35E 444-030-11 23 T30S R35E APN sec Township Range 444-040-09 16 T30S R35E 444-040-11 16 T30S R35E 444-040-15 21 T30S R35E 444-040-18 19 T30S R35E 444-040-19 19 T30S R35E 444-040-13 16 T30S R35E 444-050-01 27 T30S R35E 444-050-04 25 T30S R35E 444-060-03 29 T30S R35E 444-060-08 33 T30S R35E 444-070-01 3 T30S R36E 444-070-02 3 T30S R36E 444-080-01 6 T30S R36E 444-080-02 6 T30S R36E 444-080-05 5 T30S R36E 444-080-06 5 T30S R36E 444-080-11 8 T30S R36E 444-080-13 7 T30S R36E 444-080-15 7 T30S R36E 444-100-02 17 T30S R36E 444-100-10 19 T30S R36E 444-100-11 19 T30S R36E 444-060-05 28 T30S R35E 444-040-02 17 T30S R35E RESOLUTION NO. 2011-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ACCEPTING THE NOVATION OF CH2MHILL, INC. FROM CH2MHILL, INC. TO CH2MHILL ENGINEERS, INC. AND AUTHORIZING THE EXECUTION OF TASK ORDER NO. 2011-1 TO THE STANDARD MASTER AGREEMENT, BY AND BETWEEN THE CITY OF VERNON AND CH2MHILL ENGINEERS, INC. WHEREAS, on February 23, 2009, the City Council of the City of Vernon adopted Resolution No. 9866 approving a Standard Master Agreement (the "Agreement"), with CH2MHILL, Inc., to provide environmental and engineering support and related services, as well as construction management services, in connection with power and energy projects on a task basis; and WHEREAS, on October 19, 2009, the City Council of the City of Vernon adopted Resolution No. 10,081 approving Task Order No. I., Modification B to the Agreement; and WHEREAS, City Staff has received a request for consent to novate CH2MHill's Agreement from CH2MHill, Inc. to CH2MHill Engineers, Inc. ("CH2MHill Engineers"); and WHEREAS, CH2MHill Engineers will assume all obligations under the Agreement with the same terms and conditions; and WHEREAS, on April 19, 2011 the City Council of the City of Vernon approved Task order No. 2011-1 with CH2MHill Engineers for additional funds to cover the activities as part of the ongoing support for the development and permitting of the City's wind energy project in an amount not to exceed $505,133.00, subject to a contract to be drafted by the City Attorney and executed by both parties; and WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (b)(1) and (7) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to approve Task Order No. 2011-1 to the Agreement with CH2MHILL Engineers to provide professional and consulting services for the ongoing support of the development of wind energy resources. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby accepts the request for consent to novate CH2MHill, Inc. from CH2MHill, Inc. to CH2MHill Engineers, Inc., a copy of which is attached hereto as Exhibit A. SECTION 3: The City Council of the City of Vernon hereby approves Task Order No. 2011-1, with CH2MHill Engineers, Inc., a copy of which is attached hereto as Exhibit B. SECTION 4: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute the request for consent to novate and Task order No. 2011-1 for, and on behalf of, the City of Vernon and the City Clerk is hereby authorized to attest thereto. SECTION 5: The City Council of the City of Vernon hereby authorizes the City Administrator, or his designee, to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized. - 2 - SECTION 5: The City Council of the City of Vernon hereby directs the City Clerk, or the City Clerk's designee, to send a fully executed request for consent to novate and Task Order No. 2011-1 to CH2MHILL Engineers, Inc. SECTION 6: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 3 Id day of may, 2011. A77T: r, W MWAV A W", WA "a, �1- 0 le I �R I Name: Hilario Gonzales Title: Mayor / - 3 - STATE OF CALIFORNIA ss COUNTY OF LOS ANGELES I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2011-71, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, May'3, 2011, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this �- day of May, 2011, at Vernon, California. (SEAL) 5�6:m �-izy t-:ierK - 4 - EXHIBIT A CH2M HILL 222 East Carrillo, Suite 207 Santa Barbara, CA 93101 CH21WHILL Tol 805.568.3811 AW February 23, 2011 Mr. Carlos Fandino Director of Power & Light City of Vernon 4305 South Santa Fe Avenue Vernon, CA 90058-1714 SUBJECT: Request for Notification and Consent to Novate CH2M HILL's City of Vernon - Master Professional Services Agreement, dated February 23, 2009 ("Contract"), from CH2M HILL, Inc. to CH2M HILL Engineers, Inc. Dear Javier: As we discussed, CH2M HILL has decided to restructure our approach to delivering U.S. Federal and Non -Federal work. CH2M HILL conducts business in both U.S. Federal and Non - Federal (commercial) markets, and until now, a significant portion of our Non -Federal business has been housed in the same entities that were set up to satisfy the regulated U.S. Federal market. With this ' in mind, CH2M HILL's leadership has decided to move our commercial work out of U.S. Federal entities and into Non -Federal (commercial) entities. Effective upon the date of City approval, CH2M HILL will novate the Contract from CH2M HILL, Inc. (INC) to CH2M HILL Engineers, Inc. (CHE). CHE will assume all of the rights, benefits and liabilities under -the Contract. CHE will ensure the following upon the effective date of the assignment: • There will be no change in personnel assigned to your project. • There will be no interruption in continuity of service. • All contractual obligations will continue to be delivered and satisfied. Pursuant to and in accordance with Article 6.9 Assignment of the Master Services Agreement, this letter constitutes CH2M HILL's request for consent of CH2M HILL's novation of the Contract from INC to CHE. Please provide your consent to and approval of Contract assignment to CHE by executing the consent block below and emailing an executed copy back to Jennifer Scholl's attention: je.nnifer.scholl@ch2m.com. REVISED 4M2011 City of Vernon February 23, 2011 Page 2 If you have any questions about this request, please contact Jennifer Scholl or Jessica Kinnahan at (805) 568-0650. Sincerely, CH2M HILL Engineers, Inc. By: Name: Chris Shea Title: Vice President, Environmental Services Phone: (720) 286-3136 Fax: (720) 286-9250 Email: Chris.Shea@ch2m.com Sincerely, CH2M HILL, By: Name: Mark L. Bricker Title: Vice President, Environmental Services Phone: (425) 233-3294 Fax: (425) 468-3100 Email: Mark.Bricker@ch2m com The City of Vernon hereby consents to and approves o ' f assignment of the contract from CH2M HILL, INC. to CI-12M HILL Engineers, INC, effective 2011. City of Vernon: By: Name: Title: Phone: Fax: Email: REVISED 4/7/2011 EXHiBTT B TASK ORDER NO. 2011-1 THIS TASK ORDER IS ISSUED PURSUANT TO THE STANDARD MASTER AGREEMENT BETWEEN C112M HILL ENGINEERS, INC. AND THE CITY OF VERNON FOR PROFES91ONAL SERVICES DATED MARCH 4,2009, AS AMENDED IN APRIL 2011 ("AGREEMENT") The City of Vernon Renewable Energy Lands Project (VREL), which is incorporated herein by this reference, with respect to the ("Project") to provide ongoing support for the develo pment and permitting of wind energy generation on lands subject to the existing and future control of the City located in the Kelso Valley, Kem County, California. Specific Services: Provide services as described in the attached proposal dated March 21, 2011 (the "Proposal"), attached hereto, and incorporated herein by this reference. Compensation Provisions: Time and materials basis at rates set forth in the Proposal in an amount not to exceed $505,133 unless previously approved by the City in writing. Work Schedule: As set forth in the proposal, Task Order No. 2011-1 covers the following activities necessary to comply with local, state or federal requirements related to the Endangered Species Act (ESA), the California Endangered Species (CESA) and the California Environmental Quality Act (CEQA): Activity I- Project Description Development; Activity 2 - Biological Resource Mobilization; Activity 3 - Habitat Characterization; Activity 4 - Met Tower/AnaBat Installation; Activity 5 - Permit Planning/Support; Activity 6 - GIS Analysis/Support; and Activity 7 - Project Management. The Authorized Representatives designated below are authorized to act with, respect to Task Order. Communications between the parties shall be between parties and their consultants or subcontractors shall be through the Authorized Representatives: For CH2M HILL Engineers, INC. For the Client Name: Mark L. Bricker Name: Carlos Fandino, Director of Power & Address: 1100 112th Ave. NE, Ste 400 Light Address: 4305 Santa Fe Avenue, Bellevue, WA 98004 Vernon, CA 90058 Telephone: 425-233-3294 Telephone: 323-583-1811 Except as specifically modified in this Task Order No. 2011 - 1, all terms and conditions set forth in the Agreement remain in full force and effect. This Task Order No. 2011-1, will be effective April 19,2011. Accepted for CH2M HILL Engineers, INC. by: Accepted for Client by: Name: Mark L. Bricker Name:. C- Hilario Gonzales Title: Vice President, Environmental Services Title: Difeetef of Light& PeweF Mayor ATTEST: Willard G. Yamaguchi, City Clerk ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21,2011 initiating surveys. Raptor nest surveys and searches will be conducted during the Spring 2011 breeding season, beginning April 2011, including one 1-day aerial survey. The objective of the surveys is to locate the active and inactive nests that may be subject to disturbance and/or displacement effects from wind project construction and/or operation. The nest surveys will gather information on species nesting in the area including nest locations, nesting season (timing), and nest success. The survey area will include the primary study area and the area within an approximate 2-n-dle buffer of the study area, the primary project access routes and any transmission line corridors needed for the site. Two methods, ground and aerial, will be used to survey for raptor nests. One aerial raptor nest survey will be conducted via helicopter in April or May. Additionally, on -the -ground nest surveys will be conducted throughout the nesting season during the avian use surveys, described in the subtask above. Anabat Data Collection and Bat Acoustic Studies CH2M HILL and its subcontractor (WEST, Inc.) will draft a study prot6col acceptable to USFWS and CDFG for implementing the bat acoustic study. The bat acoustic study protocol will be designed and implemented to assess species composition, estimate relative bat population density at the site, assess timing of migration, and provide information on temporal and spatial patterns of bat activity across the site. IrL addition, the study protocol will outline methods for data collection (e.g., number and species of bats observed) and subsequent impact assessment (e.g., potential for collision fatalities) using recognized biometric applications. 2.2.1 Assumptions • Field data collection worksheets will be included as part of the draft protocol. • Surveyor training and protocol compliance will be conducted prior to initiating baseline surveys. * WEST will conduct the statistical analyses using the summarized data and provide CH2M HILL with the results. CH2M HILL's technical team will rely upon Critigen (see Task 7 below) for GIS support. As needed, other subcontractors will be added to meet the project scheduling requirements with appropriate adjustments to scope and cost as necessary. * Raptor nest survey data will be included in the Draft and Final Interim Avian Use Study Report. * The City will charter the helicopter directly for aerial raptor nest and focused eagle surveys and provide all necessary insurance. 2.2.2 Deliverables • Draft avian point count, raptor nest survey, and Anabat protocol will be prepared and submitted electronically to the City for comment and review. • The draft avian point count, raptor nest survey, and Anabat protocol (incorporating the City Team's comments) will be subn-dtted electronically for resouxce agency review in advance of in -person agency coordination meeting (see Task 2.1). COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 Final avian point count, raptor nest survey, and Anabat protocol, incorporating agency conunents, and recommendations, will be delivered to the City electronically and as hard copies. 0 Draft Interim Avian Use Study and Draft Interim Bat Acoustics Study Reports will be delivered to the City electronically for review. One round of City comments will be incorporated into the Final Interim Avian Use Study and Draft Interim Bat Acoustics Study Reports, which will be delivered electronically and as hard copies. Task 3: Habitat Characterization CH2M HILL will build upon the habitat/vegetation community mapping completed as part of previous data collection efforts by the City of and NSR. This mapping will cover City - controlled lands with development potential. In addition, this habitat/ vegetation community mapping will serve as principal tool to effectively site the appurtenant wind energy infrastructure. This characterization effort will be used to identify the focused surveys required for compliance with ESA and CESA. The habitat/vegetation community assessments will be completed by conducting both aerial mapping and field reconnaissance. The purpose of the aerial mapping is to become familiar with the project area, identify and map habitats/vegetation communities. One, two-day field survey will be conducted to verify aerial mapping results. This survey will refine mapped habitats/ vegetation communities and identify potential habitat for special status species. Vegetation conununities will be delineated according to the Holland classification system and Keeler -Wolf classification system, as appropriate, the more widely used California desert vegetation classification systems. The data and conclusions made as a result of the habitat characterization tasks will be used to identify the scope and implementation of the biological survey program to be defined under supplemental scopes of work and submitted to the City of Vernon for additional consideration. Assumptions 0 A CH2M HILL biologist and a high desert botanist will conduct the reconnaissance -level field survey over a two day field effort. Where access cannot be gained, CH2M HILL will rely on aerial mapping and topographic data alone. 0 Detailed vegetation communication surveys and plant classifications including keying to genus or species level are not a part of the field reconnaissance effort. Deliverables Draft habitat/ vegetation community technical memo to document the findings of the aerial mapping and reconnaissance survey. Final habitat/vegetation community technical memo. COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21,2011 Task 4: Meteorological Tower/AnaBat Installation Task. 4.1 Meteorological Tower Program CH2M HILL will support the City in implementing a meteorological (met) tower program, including oversight of the installation of up to 8 new met towers by Harness Energy, to include permitting and logistical coordination prior to the installation, and construction oversight. CH2M HILL will coordinate with Kern County to process the required building permits, prepare construction "tailgate" training materials, assist with logistics pre-, during, and post -installation efforts, and providing construction oversight. CH2M HILL will be present during installation of the met towers to monitor the construction activities in order to minimize potential construction impacts to biological resources. Assumptions • The City will contract directly with the met tower installer. • One pre -construction visit is anticipated for sensitive resource identification and flagging. • Worker education meeting is anticipated to occur during the pre -construction site visit. One biologist and one envirom-nental planner will be present during key periods of installation (i.e., pre -construction, site mobilization, vegetation removal and ground disturbance, and site clean-up). • AnaBat pulleys will be installed on each met tower by the City -contracted met tower installer according to manufacturer specifications. • Firefly bird diverters will be installed on all guy wires, by the City -contracted met tower installer; a maximum distance of 30 feet apart. Installation activities are expected to take up to 28 working days for the 8 towers (approximately 3.5 days per tower). CH2MHILL construction oversight will include "spot checks" requiring a maximum of 12 site visits. Deliverables • Draft worker education brochure. • Final worker education brochure, incorporating one consolidated set of City comments. • Draft technical memorandum summarizing installation activities. 0 Final technical memorandum, incorpating one consolidated set of City comments. Task 4.2 AnaBat Installation CH2M HILL and its subcontractor (WEST, Inc.) will install up to 8 AnaBat units consistent with agency requirements in appropriate locations within the site and on met tower locations as detern-dned in Task 4.1, Met Tower Program. Harness Energy will be responsible for mistallation of the met towers while CH2M HILL will be responsible for installation of the AnaBat units (except for the pulley systems, which will be installed by Harness Energy). CH2M HILL will install bat monitoring equipment, COPYRIGHT 2011 BY CH21A HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 including microphones and solar panels. CH2M HILL will coordinate with Harness Energy regarding the timing for installation of the AnaBat components. For AnaBat units installed on met towers, the detectors will be paired so that two microphones will be mounted per met tower; one near ground level approximately 1.5 meters (about 5 feet) above the ground and the other attached to the met tower at a height located within the future VVTG rotor -swept zone, typically a minimum of ;-> 30 meters (about 100 feet) above the ground. During installation of the met towers, a pulley system will be installed (by Harness Energy) on each met tower and used to raise and lower the microphones. During installation, CH2M HILL staff will be present to monitor installation of the met towers as described in Task 4.1, Met Tower Program. Data collection and reporting from AnaBat units is described in Task 2, Biological Resource Data Collection Protocols and Initial Field Mobilization. Assumptions • Oversight and installation of up to 8 AnaBat units on met towers at ground level will be conducted by CH2M HILL staff/ subcontractors. • Installation of AnaBat units will occur during the same period of met tower installation. Deliverables • Draft technical memorandum summarizing installation activities. • Final technical memorandum, incorpating me consolidated set of City comments. Task 5: Permit Planning/Support Task 5.1 Culvert Replacement Project The City has indicated the desire to eliminate the outstanding Kern County enforcement case related to the unpern-dtted road grading and culvert, installed by others. Closure of the enforcement case will help to enhance the City's asset value. Under this activity, CH2M HILL will coordinate with and periodically monitor the construction contractor for road/ culvert repair. Construction is anticipated to include mobilization, road grading, erosion control (sand bags, silt fence, fiber rolls, rip rap drainage pads) and hydroseeding, and storm drain culvert installation. Assumptions • Pasquini Engineering, Inc. will contract directly with the City for this activity. • Pasquini Engineering, Inc. hag received Kern County approval of construction plans for the proposed culvert replacement project and is responsible for providing all pertinent design and construction information to support construction scheduling/ implementation by the subcontractor and periodic subcontractor monitoring by CH2M HILL. CH2M HILL construction monitoring will include "spot checks" of subcontractor construction activities, requiring a maximum of 10 site visits. Construction scheduling is the responsibility of the subcontractor, and is responsible to communicate any deviations from the proposed schedule to the City. COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 CH2M HILL will be responsible for required fees for grading and other permits required to implement the culvert replacement, up to a maximum of $5,000 as discussed in Task 5.2 below. Task 5.2 Permitting Support CH2M HILL will continue to support the City with permitting support, strategy and guidance, and initial coordination with permitting agencies, as appropriate. Efforts will include assessment of initial environmental resource data (as determined by Tasks 1 through 3), guidance/ strategy related to regulatory permitting requirements, and data management required to support application processing for Kern County and Bureau of Land Management. In addition, CH2M HILL will be responsible for paying necessary permit fees, up to a maximum of $5,000. Assumption Permit and County administrative fees will not exceed $5,000. Deliverable Draft application package outline for future permitting. Task 6: GIS Analysis/Support - Critigen This SOW and budget estimate covers GIS analysis and support through July 2011 for Tasks 1 through 5, as previously discussed. Assumptions • The following is assumed for Critigen GIS analysis/ support by task: Task 1 - 318 labor hours; Task 2 - 180 labor hours; Task 3 - 80 labor hours; Task 4 - 40 labor hours; Task 5 - 80 labor hours. • Critigen GIS analysis/ support for the period of performance (April - July 2011) is assumed to require a maximum of 698 labor hours, not to exceed $ 91,350 as listed in Table 1. Task 7: Project Management and Administration This scope of work and budget estimate covers project management, including transactional support, and administrative support through July 2011. Reporting CH2M HILL will prepare monthly reports to be submitted to the City. These reports will document the activities that took place, the previous month, activities planned for the current month, and any problems or concerns encountered by the project team. Change Management In any baseline data collection effort, changes from the original scope and assumptions may occur. Our team will promptly identify and communicate change issues to the City for appropriate consideration under this and/or future scopes of work. It is anticipated that supplemental scopes of work will be developed to cover the next phase of ongoing activities during the delivery of the current scope of work. COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21,2011 Quality Management Consistent with past efforts, Quality Management tasks will include the following: 0 Participation of two staff on up to six team calls and preparation of meeting notes. 0 Preparation of monthly status reports to accompany invoices. Transactional support, including calls with potential developers, communication with Latham & Watkins, preparation of array maps and other maps as requested by Latham & Watkins and/or the City. 0 QA/QC of project teamwork product and deliverables. 0 Preparation of proposals for additional scopes of work. Assumptions Includes weekly coordination calls between CH2M HILL project management team and city. Includes administrative support for preparing invoices, issuing subcontracts and processing subcontractor invoices, and other administrative support (assumed to average 12 hours per month). Deliverables Monthly reports and invoicing. Budget Summary CH2M HILL's budget estimate for this scope of work is provided in Table 2. CH2M HILL 2011 labor and expense rates have been previously submitted to the City. The proposed budget for this work is $505,133. This amount will not be exceeded without prior written authorization from the City. COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 TABLE 2 Breakdown of Estimated Time and Materials Budget Task No. Description CH2M HILL Labor Hours CH2M HILL Labor Costs Sub -Contracts and Expenses Budget 1 Project Definition 342 $49,496 $0 $49,496 2 Biological Resource Mobilization Activities 834 $113,380 $66,513 $179,893 2.1 Agency and Data Coordination Plan 238 $31,470 $400 $31,870 2.2 Data Collection Protocols and Fieldwork Mobilization 596 $81,910 $66,113 $148,023 3 Habitat Characterization 272- $33,048 $3,152 $36,200 4 Met Tower/AnaBat Installation 452 $51,960 $7,058 $59,018 5.1 Culvert Replacement Project 146 $18,629 $3,400 $22,029 5.2 Permitting Support, 192 $24,740 $5,858 $30,598 5 Permit Planning/Support 338 $43,369 $9,258 $52,627 6 GIS Analysis/Support - Critigen . NIA N/A $91,350 $91,350 7 Project Management and Administration 282 $36,429 $120 $36,549 Totals 2,520 $327,682 $177,451 $505,133 Contract Terms CH2M. HILL proposes to perform this work as Task Order No. 2011-1, on a time -and - materials basis under the contract terms and conditions from the Master Services Agreement, dated March 4,2009, as amended in April 2011. 10 COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL H1111 1h, OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 May 5, 2011 Jessica Kinnahan CH2MHill Engineers 222 East Carrillo, Suite 207 Santa Barbara, CA 93 101 Re: Task Order No. 2011 -1 and Request for Notification and Consent to Novate Dear Ms. Kinnahan: Transmitted herewith are fully executed originals of the above -referenced documents, approved by City Council on May 3, 2011, through Resolution No. 2011-71. If you have any questions regarding this matter, please call Carlos Fandino at 323/583-8811 ext. 834. Ve ly yours, ry WILLAR Y G CHI AV City Clerk/Inte City Attorney WGY:dj c: Carlos Fandino Purchasing Department Resolution No. 2011-71, 9866, 10,081 Agreement File No. 11 -054 E�Ccfusivefy Industfiaf Page I of I Juarez, Debbie From: Juarez, Debbie Sent: Thursday, May 05, 2011 2:55 PM To: 'Jennifer.scholl@ch2m.com'; Fandino, Carlos; Hunter, Audra; Valdez, Javier; Tolmasoff, Tania Subject: CH2MHILL Engineers, Inc. - Request for Notification and Consent to Novate - Fully Executed Copy Attachments: CH2MHILL ENGINEERS - REQUEST FOR NOTIFICATION AND CONSENT TO NOVATE.PDF 5/5/2011 CH2M HILL 222 East Carrillo, Suite 207 Santa Barbara, CA 93101 Tel 805.568.3811 CH2MHILL February 23, 2011 Mr. Carlos Fandino Director of Power & Light City of Vernon 4305 South Santa Fe Avenue Vernon, CA 90058-1714 SUBJECT: Request for Notification and Consent to Novate CH2M HILL's City of Vernon - Master Professional Services Agreement, dated February 23, 2009 ("Contract"), from CH2M HILL, Inc. to CH2M HILL Engineers, Inc. Dear Javier: As we discussed, CH2M HILL has decide d to restructure our approach to delivering U.S. Federal and Non -Federal work. CH2M HILL conducts business in both U.S. Federal and Non - Federal (commercial) markets, and until now, a significant portion of our Non -Federal business has been housed in the same entities that were set up to satisfy the regulated U.S. Federal market. With this in mind, CH2M HILL's leadership has decided to move our commercial work out of U.S. Federal entities and into Non -Federal (commercial) entities. Effective upon the date of City approval, CH2M HILL will novate the Contract from CH2M HILL, Inc. (INC) to CH2M HILL Engineers, Inc. (CHE). CHE will assume all of the rights, benefits and liabilities under the Contract. CHE will ensure the following upon the effective date of the assignment: • There will be no change in personnel assigned to your project. • There will be no interruption in continuity of service. • All contractual obligations will continue to be delivered and satisfied. Pursuant to and in accordance with Article 6.9 Assignment of the Master Services Agreement, this letter constitutes CH2M HILL's request for consent of CH2M HILL's novation of the Contract from INC to CHE. . Please provide your consent to and approval of Contract assignment to CHE by executing the consent block below and emailing an executed copy back to Jennifer Scholl's attention: jennifer.scholl@ch2m.com. REVISED 4/7/2011 ih7 nf Vornn-n February 23, 2011 Page 2 If you have any questions about this request, please contact Jennifer Scholl or Jessica Kinnahan at (805) 568-0650. Sincerely, CH2M HILL Engineers, Inc. By: Name: Chris Shea Title: Vice President, Environmental Services Phone: (720) 286-3136 Fax: (720) 286-9250 Email: Chris.Shea@ch2m.com Sincerely, CH2M HILL, I� By: Name: Mark L. Bricker Title: Vice President, Environmental Services Phone: (425) 233-3294 Fax: (425) 468-3100 Email: Mark.Bricker@ch2m.com The City of Vernon hereby consents to and approves of assignment of the contract from CH2M HILL, INC. to CH2M HILL Engineers, INC, effective May 3 2011. City of Vernon: By: Name: Hilario Gonzales A T1* 01 Title: Mayor Wiftard t. Yalrag C 1, CU Clerk Phone: 323-583-8811 ext. 834 APPROVED AS TO VRM: Fax: 323-826-1408 Michael B. Montgome �pecial Counsel Email: cfandino@ci.vernon.ca.us "-7� �—' REVISED 4/7/2011 TASK ORDER NO. 2011-1 THIS TASK ORDER IS ISSUED PURSUANT TO THE STANDARD MASTER AGREEMENT BETWEEN C112M HILL ENGINEERS, INC. AND THE CITY OF VERNON FOR PROFESSIONAL SERVICES DATED MARCH 4,2009, AS AMENDED IN APRIL 2011 ("AGREEMENT") The City of Vernon Renewable Energy Lands Project (VREL), which is incorporated herein by this reference, with respect to the ("Proj ecf ') to provide ongoing support for the development and permitting of wind energy generation on lands subject to the existing and future control of the City located in the Kelso Valley, Kern County, California. Specific Services: Provide services as described in the attached proposal dated March 21, 2011 (the "Proposal"), attached hereto, and incorporated herein by this reference. Compensation Provisions: Time and materials basis at rates set forth in the Proposal in an amount not to exceed $505,1 33 unless previously approved by the City in writing. Work Schedule: As set forth in the proposal, Task Order No. 2011 -1 covers the following activities necessary to comply with local, state or federal requirements related to the Endangered Species Act (ESA), the California Endangered Species (CESA) and the California Environmental Quality Act (CEQA): Activity I - Project Description Development; Activity 2 - Biological Resource Mobilization; Activity 3 - Habitat Characterization; Activity 4 - Met Tower/AnaBat Installation; Activity 5 - Permit Planning/Support; Activity 6 - GIS Analysis/Support-, and Activity 7 - Project Management. The Authorized Representatives designated below are authorized to act with respect to Task, Order. Communications between the parties shall be between parties and their consultants or subcontractors shall be through the Authorized Representatives: For CH2M HILL Engineers, INC. For the Client Name: Mark L. Bricker Name: Carlos Fandino, Director of Power & Light Address: I 100 1 12'b Ave. NE, Ste 400 Address: 4305 Santa Fe Avenue, Bellevue, WA 98004 Vernon, CA 90058 Telephone: 425-233-3294 Telephone: 323-583-1811 Except as specifically modified in this Task Order No. 2011 - 1, all terms and conditions set forth in the Agreement remain in full force and effect. This Task Order No. 2011-1, will be effective April 19, 2011. Accepted for CH2M HILL Engineers, INC. by: Accepted for Client by: Name: Mark L. Bricker Title: Vice President, Environmental Services Name: GfflasFandifte Hilario Gonzales Title: Mayor ATTZST: Wil,Xard G. YffhaVhi, Ui y Clerk APPROVED AS TO FORM: Michael L Montgomery, Speififal Counsel City of Vernon Renewable Energy Land (VREL) ATTACHMENT A Scope of Work General Scope This Scope of Work (SOW) describes the activities that CH2M HILL will complete on behalf of the City, from April 2011 through July 2011. Activities outlined within this SOW are necessary to maintain the asset value, support future permitting with Kern County, state and federal agencies (e.g., Endangered Species Act [ESA], the California Endangered Species Act [CESA] and the California Environmental Quality Act [CEQAI. Activities covered within this scope of work cover a period of approximately 4 months, as'identified in Table 1, and are presented to allow flexibility with work delivery with the understanding that supplemental scopes of work will be required to cover subsequent phases of ongoing VREL development. TABLE 1 CH2M HIL Proposed SOW - City of Vernon Renewable Energy Land Developm nt Support Activity No. Task Anticipated Timing for Implementation 1 Project Definition April 2011 to July 2011 2 Biological Resource Mobilization Activities April 2011 to June 2011 3 Habitat Characterization April 2011 to May 2011 4 Met Tower/AnaBat Installation Late -April to Late -May 2011 5 Permit Planning/Support April 2011 to July 2011 6 GISAnaly is/Support—Critigen April 2011 to July 2011 7 Project Administration April 2011 to July 2011 General Assumptions General SOW assumptions: The SOW covers the initial phase (Phase I - April 2011 through July 2011) of VREL development. Supplemental scopes of work. are anticipated to be required to cover the next phase of ongoing activities, with the first supplemental scope to be submitted in early -May 2011. In order to meet the City's expectations, CH2M HILL may rely on specialized subcontractors to support data collection and reporting requirements. CH2M HILL directly contracts with Critigen (CH2M HILL former entity) for GIS-related tasks and services. • Site access will continue to be authorized by the City through coordination with Renewable Resources Group, Inc. and NextEra Energy Resources. • CH2M HILL will address one round of consolidated City Team comments on each draft deliverable. Draft deliverables will be provided in electronic forrnat. Final deliverables COPYRIGHT 2011 BY CH2M HILL, INC, - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 will be provided in hard copy (up to five copies) and uploaded to the Project SharePoint site. • Meetings minutes/notes will be delivered in electronic format. • A Trimble Geo XT sub -meter accuracy global positioning system (GPS) unit will be used for data collection during all field work. CH2M HILL staff and subcontractor safety will be the highest priority. Project team members, including subcontractors, will be required to comply with CH2M HILL's VREL Health and Safety Plan. The CH2M HILL Field Safety Coordinator will implement the Plan and day-to-day safety oversight will occur concurrently with survey efforts. Additional task -specific assumptions are presented in the respective descriptions for Tasks 1 through 7 described below., Task 1: Project Definition CH2M HILL will provide support to the City for developing a site layout for wind development on lands controlled by the City. CH2M HILL will collaborate with the City of Vernon technical staff and V-BAR, wind resource specialists, to develop the site layout. CH2M HILL's technical team will rely upon Critigen (see Task 6 below) for GIS support and on CH2M HILL Engineers (CHE) for wind energy engineering support to develop a site layout that can be used to comply with regulatory agency requirements for the implementation of a wind energy facility. Project components to be defined include wind turbine generator (WTG) arrays, access roads, collector lines, generation interconnection, collector substations, concrete batch plants, construction staging areas, water storage areas, and operation and maintenance facilities. Assumptions • All data collected for the NextEra North Sky River Project will be released to the City of Vernon and used by CH2M HILL to support the project. This includes the use of high resolution ortho-topo photography, refined contours, and all envirom-nental resource data (air quality, biological, cultural, geotechnical, noise, paleontological, traffic, and visual). The existing CH2M HILL/NextEra Energy Resources contract precludes the release of any confidential or vendor specific data related to V\TTG design and siting. • Only commercially available wind turbine models will be considered for project design. The draft and final conceptual site layout produced as part of this task will be based solely on activities conducted as part of the initial phase (Phase I - April 2011 through July 2011) development of the VREL. Subsequent revisions/ iterations to the site layout will be conducted under supplemental scopes of work. This task assumes one 1-day site visit by up to three CH2M HILL staff and City representatives. Deliverables 0 Draft and Final conceptual site layout. COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 Task 2: Biological Resource Mobilization Activities Task 2.1 Agency and Data Coordination Action Plan CH2M HILL will analyze the data gathered for the North Sky River Wind Energy Project (NSR) and identify which data are applicable to the City of Vernon project, and any data required for permitting the City of Vernon project that do not currently exist. An action plan will be developed to address data gaps. The action plan will include a discussion of the appropriate schedule and content of coordination with BLM, CDFG, Kern County, and USFWS. Assumptions CH2M HILL travel costs for one in -person agency meeting are included. The cost estimate assumes that the meeting will occur in Santa Barbara and be attended by up to 4 CH2M HILL staff. CH2M HILL Avian Task Leader and Project Manager will coordinate and participate in conference calls with USFWS and CDFG staff, as needed, not to exceed two calls per month over the four months covered by this SOW. Deliverables • A draft Data Collection and Agency Coordination Action Plan will be provided electronically for the City of Vernon's review. One round of comments will be incorporated before the final Plan is delivered electronically and as a hard copy to the City. • Meeting minutes and action items from resource agency meetings. Task 2.2 Data Collection Protocols and Fieldwork Mobilization , CH2M HILL will leverage the experience gained from similar projects in the vicinity to develop survey protocols for the collection of avian point counts, raptor nest, and Anabat data. CH2MHILL will mobilize the field survey efforts and begin to implement the data collection program, according to the developed/ agency endorsed protocols. Avian Baseline Surveys CH2M HILL and its sub -contractor (WEST, Inc.) will prepare and finalize a study protocol for conducting avian use studies acceptable to CDFG and USFWS. Under this activity, the CH2M HILL Avian Task Leader and an avian specialist will conduct a reconnaissance -level field visit (one 10-hour day) to identify up to 20 suitable avian point count locations within the project area. After City approval of the point count protocol, CH2M HILL will establish the permanent point count locations. Baseline avian use data will be collected by visiting each designated point count location once per week beginning in May 2011 and continuing through the four months covered by this SOW. A pre -established survey schedule will be developed prior to initiating fieldwork. Staff safety and protocol compliance training will occur prior to initiating surveys. CH2M HILL will rely on existing data collected during site reconnaissance in Spring 2009 to the present, and GIS data collected by CH2M HILL. Raptor Nest and Focused Eagle Surveys CH2M HILL and its sub -contractor (WEST, Inc.) will develop a raptor nest survey protocol prior to initiating fieldwork. Staff safety and protocol compliance training will occur prior to COPYRIGHT 2011 BY CH2M HILL, INC, - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 initiating surveys. Raptorn.est surveys and searches will be conducted during the Spring 2011 breeding season, beginning April 2011, including one 1-day aerial survey. The objective of the surveys is to locate the active and inactive nests that may be subject to disturbance and/or displacement effects from wind project construction and/or operation. The nest surveys will gather information on species nesting in the area including nest locations, nesting season (timing), and nest success. The survey area will include the primary study area and the area within an approximate 2-n-dle buffer of the study area, the primary project access routes and any transmission line corridors needed for the site. Two methods, ground and aerial, will be used to survey for raptor nests. One aerial raptor nest survey will be conducted via helicopter in April or May. Additionally, on -the -ground nest surveys will be conducted throughout the nesting season during the avian use surveys, described in the subtask above. Anabat Data Collection and Bat Acoustic Studies CH2M HILL and its subcontractor (WEST, Inc.) will draft a study protocol acceptable to USFWS and CDFG for implementing the bat acoustic study. The bat acoustic study protocol will be designed and implemented to assess species composition, estimate relative bat population density at the site, assess timing of migration, and provide information on temporal and spatial patterns of bat activity across the site. In addition, the study protocol will outline methods for data collection (e.g., number and species of bats observed) and subsequent impact assessment (e.g., potential for collision fatalities) using recognized biometric applications. 2.2.1 Assumptions • Field data collection worksheets will be included as part of the draft protocol. • Surveyor training and protocol compliance will be conducted prior to initiating baseline surveys. • WEST will conduct the statistical analyses using the summarized data and provide CH2M HILL with the results. CH2M HILL's technical team will rely upon Critigen (see Task 7 below) for GIS support. As needed, other subcontractors will be added to meet the project scheduling requirements with appropriate adjustments to scope and cost as necessary. • Raptor nest survey data will be included in the Draft and Final Interim Avian Use Study Report. • The City will charter the helicopter directly for aerial raptor nest and f ocused eagle surveys and provide all necessary insurance. 2.2.2 Deliverables • Draft avian point count, raptor nest survey, and Anabat protocol will be prepared and submitted electronically to the City for comment and review. • The draft avian point count, raptor nest survey, and A-nabat protocol (incorporating the City Team's comments) will be submitted electronically for resource agency review in advance of in -person agency coordination meeting (see Task 2.1). COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 Final avian point count, raptor nest survey, and Anabat protocol, incorporating agency comments and recommendations, will be delivered to the City electronically and as hard copies. Draft Interim Avian Use Study and Draft Interim Bat Acoustics Study Reports will be delivered to the City electronically for review. One round of City comments will be incorporated into the Final Interim Avian Use Study and Draft Interim Bat Acoustics Study Reports, which will be delivered electronically and as hard copies. Task 3: Habitat Characterization CH2M HILL will build upon the habitat/ vegetation community mapping completed as part of previous data collection efforts by the City of and NSR. This mapping will cover City - controlled lands with development potential. hi addition, this habitat/ vegetation community mapping will serve as principal tool to effectively site the appurtenant wind energy infrastructure. This characterization effort will be used to identify the focused surveys required for compliance with ESA and CESA. The habitat/vegetation cornmunity assessments will be completed by conducting both aerial mapping and field reconnaissance. The purpose of the aerial mapping is to become familiar with the project area, identify and map habitats/ vegetation communities. One, two-day field survey will be conducted to verify aerial mapping results. This survey will refine mapped habitats/ vegetation communities and identify potential habitat for special status species. Vegetation communities will be delineated according to the Holland classification system and Keeler -Wolf classification system, as appropriate, the more widely used California desert vegetation classification systems. The data and conclusions made as a result of the habitat characterization tasks will be used to identify the scope and implementation of the biological survey program to be defined under supplemental scopes of work and submitted to the City of Vernon for additional consideration. Assumptions 0 A CH2M HILL biologist and a high desert botanist will conduct the reconnaissance -level field survey over a two day field effort. Where access can -not be gained, CH2M HILL will rely on aerial mapping and topographic data alone. 0 Detailed vegetation communication surveys and plant classifications including keying to genus or species level are not a part of the field reconnaissance effort. Deliverables Draft habitat/ vegetation community technical memo to document the findings of the aerial mapping and reconnaissance survey. 0 Final habitat/ vegetation community technical memo. COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21,2011 Task 4: Meteorological Tower/AnaBat Installation Task 4.1 Meteorological Tower Program CH2M HILL will support the City in implementing a meteorological (met) tower program, including oversight of the installation of up to 8 new met towers by Harness Energy, to include permitting and logistical coordination prior to the installation, and construction oversight. CH2M HILL will coordinate with Kern County to process the required building permits, prepare construction "tailgate" training materials, assist with logistics pre-, during, and post -installation efforts, and providing construction oversight. CH2M HILL will be present during installation of the met towers to monitor the construction activities in order to minimize potential construction impacts to biological resources. Assumptions 0 The City will contract directly with the met tower installer. One pre -construction visit is anticipated for sensitive resource identification and flagging. 0 Worker education meeting is anticipated to occur during the pre -,construction site visit. One biologist and one environmental planner will be present during key periods of installation (i.e., pre -construction, site mobilization, vegetation removal and ground disturbance, and si , te clean-up). AnaBat pulleys will be installed on each met tower by the City -contracted met tower installer according to manufacturer specifications. Firefly bird diverters will be installed on all guy wires, by the City -contracted met tower installer; a maximum distance of 30 feet apart. Installation activities are expected to take up to 28 working days for the 8 towers (approximately 3.5 days per tower). CH2MHILL construction oversight will include "spot checks" requiring a maximum of 12 site visits. Deliverables • Draft worker education brochure. • Final worker education brochure, incorporating one consolidated set of City comments. • Draft technical memorandum summarizing installation activities. • Final technical memorandum, incorpating one consolidated set of City comments. Task 4.2 AnaBat Installation CH2M HILL and its subcontractor (WEST, Inc.) will install up to 8 AnaBat units consistent with agency requirements in appropriate locations within the site and on met tower locations as determined in Task 4.1, Met Tower Program. Harness Energy will be responsible for installation of the met towers while CH2M HILL will be responsible for installation of the AnaBat units (except for the pulley systems, which will be installed by Harness Energy). CH2M HILL will install bat monitoring equipment, COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 including microphones and solar panels. CH2M HILL will coordinate with Harness Energy regarding the timing for installation of the AnaBat components. For AnaBat units installed on met towers, the detectors will be paired so that two microphones will be mounted per met tower; one near ground level approximately 1.5 meters (about 5 feet) above the ground and the other attached to the met tower at a height located within the future WTG rotor -swept zone, typically a minimum of �! 30 meters (about 100 feet) above the ground. During installation of the met towers, a pulley system will be installed (by Harness Energy) on each met tower and used to raise and lower the microphones. During installation, CH2M HILL staff will be present to monitor installation of the met towers as described in Task 4.1, Met Tower Program. Data collection and reporting from AnaBat units is described in Task 2, Biological Resource Data Collection Protocols and Initial Field Mobilization. Assumptions • Oversight and installation of up to 8 AnaBat units on met towers at ground level will be conducted by CH2M HILL staff/ subcontractors. • Installation of AnaBat units will occur during the same period of met tower installation. Deliverables • Draft technical memorandum summarizing installation activities. • Final technical memorandum, incorpating one consolidated set of City comments. Task 5: Permit Planning/Suppprt Task 5.1 Culvert Replacement Project The City has indicated the desire to eliminate the outstanding Kern County enforcement case related to the unpermitted road grading and culvert, installed by others. Closure of the enforcement case will help to enhance the City's asset value. Under this activity, CH2M HILL will coordinate with and periodically monitor the construction contractor for road/culvert repair. Construction is anticipated to include mobilization, road grading, erosion control (sand bags, silt fence, fiber rolls, rip rap drainage pads) and hydroseeding, and storm drain culvert installation. Assumptions • Pasquini Engineering, Inc. will contract directly with the City for this activity. • Pasquini Engineering, Inc. hag received Kem County approval of construction plans for the proposed culvert replacement project and is responsible for providing all pertinent design and construction information to support construction scheduling/ implementation by the subcontractor and periodic subcontractor monitoring by CH2M HILL. • CH2M HILL construction monitoring will include "spot checks" of subcontractor construction activities, requiring a maximum of 10 site visits. • Construction scheduling is the responsibility of the subcontractor, and is responsible to communicate any deviations from the proposed schedule to the City. COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 CH2M HILL will be responsible for required fees for grading and other permits required to implement the culvert replacement, up to a maximum of $5,000 as discussed in Task 5.2 below. Task 5.2 Permitting Support CH2M HILL will continue to support the City with permitting support, strategy and guidance, and initial coordination with permitting agencies, as appropriate. Efforts will include assessment of initial environmental resource data (as determined by Tasks 1 through 3), guidance/ strategy related to regulatory permitting requirements, and data management required to support application processing for Kern County and Bureau of Land Management. In addition, CH2M HILL will be responsible for paying necessary permit fees, up to a maximum of $5,000. Assumption Permit and County administrative fees will not exceed $5,000. Deliverable Draft application package outline for future permitting. Task 6: GIS Analysis/Support - Critigen This SOW and budget estimate covers GIS analysis and support through July 2011 for Tasks 1 through 5, as previously discussed. Assumptions The following is assumed for Critigen GIS analysis/ support by task: Task 1 - 318 labor hours; Task 2 - 180 labor hours; Task 3 - 80 labor hours; Task 4 - 40 labor hours; Task 5 - 80 labor hours. Critigen GIS analysis/ support for the period of performance (April -July 2011) is assumed to require a maximum of 698 labor hours, not to exceed $ 91,350 as listed in Table 1. Task 7: Project Management and Administration This scope of work and budget estimate covers project management, including transactional support, and administrative support through July 2011. Reporting CH2M HILL will prepare monthly reports to be submitted to the City. These reports will document the activities that took place the previous month, activities planned for the current month, and any problems or concerns encountered by the project team. Change Management In any baseline data collection effort, changes from the original scope and assumptions may occur. Our team will promptly identify and communicate change issues to the City for appropriate consideration under this and/or future scopes of work. It is anticipated that supplemental scopes of work will be developed to cover the next phase of ongoing activities during the delivery of the current scope of work. COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL A17ACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 Quality Management Consistent with past efforts, Quality Management tasks will include the following: • Participation of two staff on up to six team calls and preparation of meeting notes.' a Preparation of monthly status reports to accompany invoices. • Transactional support, including calls with potential developers, communication with Latham & Watkins, preparation of array maps and other maps as requested by Latham & Watkins and/or the City. • QA/QC of project team work product and deliverables. • Preparation of proposals for additional scopes of work. Assumptions • Includes weekly coordination calls between CH2M HILL project management team and city. • Includes administrative support for preparing invoices, issuing subcontracts and processing subcontractor invoices, and other administrative support (assumed to average 12 hours per month). Deliverables Monthly reports and invoicing.. Budget Summary CH2M HILL's budget estimate for this scope of work is provided in Table 2. CH2M HILL 2011 labor and expense rates have been previously submitted to the City. The proposed budget for this work is $505,133. This amount will not be exceeded without prior written authorization from the City. COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL ATTACHMENT A - SCOPE OF WORK CITY OF VERNON - VREL MARCH 21, 2011 TABLE 2 Breakdown of Estimated Time and Materials Budget Task No. Description CH2M HILL Labor Hours CH2M HILL Labor Costs Sub -Contracts and Expenses Budget I Project Definition 342 $49,496 $0 $49,496 2 Biological Resource Mobilization Activities 834 $113,380 $66,513 $179,893 2.1 Agency and Data Coordination Plan 238 $31,470 $400 $31,870 2.2 Data Collection Protocols and Fieldwork Mobilization 596 $81,910 $66,113 $148,023 3 Habitat Characterization 272 $33,048 $3,152 $36,200 4 Met Tower/AnaBat Installation 452 $51,960 $7,058 $59,018 5.1 Culvert Replacement Project 146 $18,629 $3,400 $22,029 5.2 Permitting Support 192 $24,740 $5,858 $30,598 5 Permit Planning/Support 338 $43,369 $9,258 $52,627 6 GIS Analysis/Support - Critigen NIA N/A $91,350 $91,350 7 Project Management and Administration 282 $36,429 $120 $36,549 Totals; 2,520 $327,682 $177,451 $505,133 Contract Terms CH2M HILL proposes to perform this work as Task Order No. 2011-1, on a time -and - materials basis under the contract terms and conditions from the Master Services Agreement, dated March 4, 2009, as amended in April 2011. 10 COPYRIGHT 2011 BY CH2M HILL, INC. - COMPANY CONFIDENTIAL