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Resolution No. 2012-138RESOLUTION NO. 2012-138 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS FOR NATURAL GAS TRANSMISSION PIPELINE IN LINE INSPECTION WHEREAS, the City of Vernon is interested.in obtaining proposals from qualified contractors to perform pipeline in -line inspection work on the City's gas transmission line; and WHEREAS, the Director of Light & Power is seeking permission for the issuance of a request for natural gas transmission pipeline in line inspection (the "RFP"). 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 instructs the City Administrator, or his designee, to issue in accordance with Vernon City Code Section 2.29-2, the RFP, a copy of which is attached hereto as Exhibit A, to one or more qualified contractors, and to report to the City Council on the proposals received with a recommendation for action. SECTION 3: 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 17th day of July, 2012. dv Name: William J. Davis Title: / Mayor Pro-TemMayor Pro-Tem ATTEST: A Wil.ard G:' YanAgohi, (C/ity Clerk - 2 - 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. 2012-138, 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, July 17, 2012, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this 44 day of July, 2012, at Vernon, California. (SEAL) - 3 - EXHIBIT A CITY OF VERNON REQUEST FOR PROPOSALS Natural Gas Transmission Pipeline In Line Inspection Vernon City Hall 4305 Santa Fe Avenue Vernon, CA 90058 Proposal Due Date: August 22, 2012, 3 pm (PST) REQUEST FOR PROPOSALS Natural Gas Transmission Pipeline In Line Inspection July 19, 2012 INTRODUCTION Recipients of this Request for Proposals (RFP) are invited to prepare and submit a proposal for pipeline in line inspection work on City of Vernon's gas transmission line. This RFP is organized into the following sections: 1.0 General Reouirements — This section provides information such as proposal due date, City contact information, schedule, etc, 2.0 Backoround and Purpose — This section provides a description of the City's existing conditions, and other pertinent issues and features that will affect the deployment of the requested work for the City. 3.0 Scope of Work — This section provides a description of the various elements of the requested gas system project. The proposer will need to address all included elements. 4.0 Evaluation of Proposals and Neaotiafions — This section provides a description of the method that the City will use In evaluating proposers' submittals, and selecting a contractor for the project work. 5.0 Proposal Format — This section provides a description of the content and sequence of the materials that the contractor should include in the submitted proposal. It is important that the Proposer's submittal conform to this format. Failure to do so can result in disqualification. 6.0 Appendices — This section provides additional information and forms that are referenced in this RFP. Appendix A: City of Vernon's RFP Protest Policy Appendix B: Sample Services Agreement Appendix C: Transmission Line Map Appendix D: Engineering Plans for the Launcher and Receiver CITY OF VERNON NATURAL GAS DEPARTMENT REQUEST FOR PROPOSALS 1.0. GENERAL REQUIREMENTS Proposals must be received by 3:00 pm (PST), August 22, 2012, Proposals shall be delivered by email only to dbergmann@ci.vernon.ca.us. To confirm delivery and for questions: Dan Bergmann IGService for City of Vernon Gas Department Cell Phone: 925-899-2578 Email.: dberamann(o)ci vernon ca us Information must be furnished complete in compliance with the terms, conditions, provisions and specifications of this RFP. The information requested and the manner of submission is essential to permit prompt evaluation of all proposals on a fair and uniform basis. Accordingly, the City reserves the right to declare as non -responsive and reject any proposal in which material information requested is not furnished or where indirect or incomplete answers or information are provided. Late proposals will not be accepted. With regard to any proposal sent to the City, the contractor shall be solely responsible for its delivery to the City prior to the date and hour set forth herein. Any proposals received subsequent to the date and hour set forth herein, because of delayed delivery or any other reason, will not be considered by the City. The City reserves the right to reject any or all of the proposals received, to negotiate with qualified contractors, or to cancel the request for proposals in part or in its entirety without explanation to the proposers. The City may elect to interview only a select number of contractors. Interviews will only be conducted to obtain additional information regarding the specified work if the City determines that additional information is needed to make a selection. The City reserves the right to select a successful contractor without conducting any interviews. The City reserves the right to revise or amend the RFP, including the proposal schedule, up to the time set to review the proposals. Such revisions and amendments, if any, shall be announced by amendments to this solicitation. Copies of such amendments shall be furnished to all prospective proposers. If the changes are material, the date set for opening of proposals may be postponed. Prospective proposers are requested to notify Mr. Bergmann in advance in order to receive any responses provided to other parties. Responses to all questions will be distributed by email to all prospective proposers that have provided their contact information. The schedule associated with this RFP is as follows. RFP Issuance Date............................................................ July 19, 2012 Notice of Interest from Prospective Parties ........................ July 26, 2012 Written Question Deadline ............................................ Aug 2, 2012 Response to Written Questions ............ Aug 9, 2012 Proposal Due Date............ Aug 22, 2012 CITY OF VERNON NATURAL GAS DEPARTMENT REQUEST FOR PROPOSALS INSURANCE REQUIREMENTS Contractors are required to maintain in force at all times during the performance of the work the following liability insurance coverage. Contractor shall provide proof of insurance, including but not limited to, a standard certificate of insurance, in at least the following amounts and coverage (combined single limit permitted). Bodily Injury Property Damage Automobiles Each Person Each Accident Each Accident Owned Automobiles $1,000,000 $1,000,000 $1,000,000 Hired Automobiles $1,000,000 $1,000,000 $1,000,000 Non -Owned Automobiles $1,000,000 $1,000,000 $1,000,000 Workers' Compensation Statutory Employers' Liability $1,000,00.0 per employer Liability General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 Independent Contractors $1,000,000 $2,000,000 $1,000,000 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000 Contractual Liability $1,000,000 $2,000,000 $1,000,000 Umbrella Liability $2,000,000 $2,000,000 $2,000,000 Professional Liability $2,000,000 $2,000.000 $2,000,000 The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance. 1. An endorsement naming the City of Vernon, its officers, and employees as additional insureds under the policy. 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material reduction of coverage. 3. An endorsement providing coverage for all operations under this Agreement. 4. Such other endorsement as may be required by the City. In addition to the above, the Contractor shall provide such further proof of insurance documentation as the City deems necessary. The following documents are required. 1. Certificate of Insurance from contractor's insurance agent; 2. Copy of insurance policy Declaration Page for General and Umbrella Liability; 3. Actual copies of any Endorsement; 4. Additional Insured Endorsement naming City as Additional Insured, form cG 2010-1185 required; and, 5. Contractor's insurance package to include Endorsement appropriate to the project being undertaken on the City's behalf. CITY OF VERNON NATURAL GAS DEPARTMENT REQUEST FOR PROPOSALS CITY OF VERNON LIVABLE WAGE ORDINANCE The selected contractor shall pay shall pay qualifying employees a wage of not less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. The contractor shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall be a prohibition on employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. 2.0 BACKGROUND AND PURPOSE The City is preparing to assess the integrity of its ten -inch natural gas transmission line as required by the Pipeline Hazardous Materials Safety Administration (PHMSA). The method of assessment to be used by the city is in -line inspection ("ILI" or "pigging"). The length of pipeline to be pigged is 4.1 miles. The entire line is under streets in Vernon, as shown on the attached map. The pipeline was hydro -tested in March 2005. Foam pigs were used successfully at that time to push the water out of the pipeline. However, the section of pipeline to be pigged has approximately 25 buried ells. Most of the ells are to enable the pipeline, to dip under another structure, such as a storm drain, rail crossing, or a buried telecommunication line. Recently we excavated several of the buried ells to visually inspect that the radius of each is at least 1.5 times the diameter (1.51)). Excavated ells all measured 1.69D. Because the line has not previously been mapped, running a flexible geometry mapping ILI is critical prior to running the more sophisticated, metal loss pig. Natural gas will be used to propel the pigs with an expected supply pressure range of 300 to 400 psig. Vernon does not have control over the supply pressure into its pipeline, although the supply pressure should remain constant at the given pressure during pigging operations. During pigging, there will be no load on the gas line such that the differential pressure propelling each pig can be carefully controlled. Differential pressure will be controlled by allowing gas to flow into the pipeline launcher at the current supply line pressure while manually operating a valve at the receiver to maintain the specified differential. Drive gas will be vented to atmosphere through a vent stack located above the receiver. Vernon is in the process of having constructed a launcher and receiver capable of handling the pigs needed for this assessment. Both traps are being located safely and conveniently off the street adjacent to Vernon's distribution system regulator stations. In conjunction with constructing the traps, Vernon is taking out of service two portions of its transmission line that will not be pigged. Consequently, when the ILI company arrives the launcher and receiver will be ready to operate to assess the shortened 4.1 mile pipeline, Drawings for the traps and reconfiguration of the pipeline are included. Regarding timing for the actual pigging, construction must first be complete on the traps and pigging must be coordinated with a power plant outage. Likely timing is sometime in September or October. CITY OF VERNON NATURAL GAS DEPARTMENT REQUEST FOR PROPOSALS 3.0 SCOPE OF WORK Ideally, the scope of work will be three pig runs and two reports, as follows. 1. The first will be a foam pig with a gauge plate to assure the pipe is clean and free of obstructions. 2. The second will be a geometry and mapping pig.. a. Physical deformation b. Proximity of Ells to each other c. Confirm ALL Ells exceed 1.51D d. Confirm number of Ells e. Mapping of pipeline 3. The third will be a magnetic flux resonance pig. a. Corrosion b. Welds c. Other micro faults However, we understand additional runs may be necessary to obtain quality results. All pigs shall be equipped with tracking devices. Please include in proposal detailed specifications for ILI devices to be used in this project. Regarding reports, the first report shall be a detailed mapping report of the pipeline addressing the items in 2, above. The second report shall address the structural integrity of the pipeline adequate to meet the assessment requirements of the PHMSA. 4.0 EVALUATION OF PROPOSALS AND NEGOTIATIONS Proposals shall be reviewed by IGService and Vernon staff. Top proposers may be asked to provide additional information. The City may request best and final offers based upon improved understanding of the offers or changed scope of work. Based on the initial proposals, and best and final offers if requested, a proposal will be selected that best fulfills the requirements and is the best value to the City. The City will negotiate with that contractor to determine final pricing, and contract form. Overall responsiveness to this request for proposals is an important factor in the evaluation process. The proposer responding to this RFP shall, with the assistance of subcontractors as needed, provide a proposal that completely addresses all of the requirements of this RFP. Exceptions maybe allowed, but the proposal must cover all requirements contained in this RFP. The lowest price proposal will not necessarily be selected. Five criteria categories are shown below to evaluate the proposals. Weighting for each category is also shown. Award will be by City Council action. Resources and Capabilities — The contractor's resources, including description of personnel and specifications for in -line tools to be used. This is critical because the pipeline has not been mapped, thus we need maximum flexibility in the tools (especially CITY OF VERNON NATURAL GAS DEPARTMENT REQUEST FOR PROPOSALS the geometry mapping tool) to reduce risk of complication in the pigging operation. (30%) 2. Related Experience— Similar work with natural gas transmission systems ILI work. (15%) 3. Project Understanding and Approach — Contractor's specific proposal for this work, including projected time needed to complete work and available start date. Please specify the amount of time needed to provide the final report suitable for review by PHMSA. (15%) 4. Contractors References — Feedback from clients we are able to contact. (10%) Price proposal — Overall project ,costs to perform the work described in the contract documents. (30%) 5.0 PROPOSAL FORMAT Proposal Submittal Checklist — The contractor's proposal for this project must include all of the following items in order to be considered as a responsive, valid submittal. A. Cover Letter. Identify the contractor's name, any proposed subcontractors that are integral to the proposed team, contact name, phone number, and email address, and signed by an officer of the contractor that is authorized to enter into a contract with the City for the project work. B. Company Qualifications. Describe related projects (up to 3) that have been successfully undertaken and completed by the contractor within the last five years. C. Three References. Contact information (name, title, agency, phone number, email address). It should be noted that the client will be contacted as a reference check. D. Project Approach. Provide a detailed approach to completing the project as identified in this RFP and listed in Section 3.0, Scope of Work. The project approach should be,. at a minimum, written in the same order as identified in Section 3.0 of this RFP. E. Timing. Provide potential start dates for work, and time needed to complete final report suitable for review by PHMSA. F. Cost Proposal. Show detail for travel and mobilization, for equipment and personnel on a per day basis, and for the reports requested. 7.0 APPENDICES Appendix A: City of Vernon's RFP Protest Policy Appendix B: Sample Services Agreement Appendix C: Transmission Line Map Appendix D: Engineering Drawings 7 APPENDIX A Appendix A City of Vernon's RFP Protest Policy A) Protest Policy Review Process 1) Any prospective Proposer may request a review of the requirements corder a solicitation for a City Council -approved services Contract; as described in paragraph C, Solicitation Requirements Review, below. Any Proposer may request a review of a disqualification or of a proposed Contract award under such a solicitation, as described respectively in Sections below. Additionally, any Proposer may obtain copies of proposals and City evaluation documents in accordance with the City's Public Records request policy once the document becomes a public record. Under any such review, it is the responsibility of the Proposer challenging the decision of City to demonstrate that the City committed a sufficiently material error in the solicitation process to justify invalidation of a solicitation or a proposed Contract award as the case may be.. 2) Throughout the review process, the City has no obligation to delay or otherwise postpone an award of Contract based on a Proposer protest. In all cases, the City reserves the right to make an award when it is determined to be in the best interest of the City of Vernon to do so. B) Grounds for Review Unless State or Federal statutes or regulations otherwise provide, the grounds for review are limited to the following: • Review of the Solicitation Requirements + Review of a Disqualified Bid/Proposal • Review of the Proposed Contractor Selection C) Solicitation Requirements Review Any person or entity may seek a Solicitation Requirements Review by submitting a written request for review to the City as described in this Paragraph, A Request for a Solicitation Requirements Review may be denied; in the City's' sole discretion, if the request does not satisfy all of the following criteria: 1) The request for a Solicitation Requirements Review is made within ten (10) business days of the issuance of the solicitation document; 2) The request for a Solicitation Requirements Review includes documentation, which demonstrates the underlying ability of the person or entity to submit a proposal. 3) The request for a Solicitation Requirements Review itemizes in appropriate detail, each matter contested and factual reasons for the requested review; and Appendix A. Page 1 of 4 4) The request for a Solicitation Requirements Review asserts either that: a) Application of the minimum requirements, evaluation criteria and/or business requirements unfairly disadvantages the person or entity; or, b) Due to unclear instructions, the process may result in the City not receiving the best possible responses from prospective Proposers. 5) The Solicitation Requirements Review will be completed and City's' determination will be provided to the requesting person or entity, in writing, within a reasonable time prior to the bid/proposal due date. D) Place to Submit Requests for Review All Requests for Review shall be submitted to the City Clerk. E) Disqualification Review 1) A bid/proposal may be disqualified from consideration because the City determined it was nonresponsive at any time during the review/evaluation process. If the City determines that a bid/proposal is disqualified due to non -responsiveness, the City shall notify the Proposer in writing. 2) Upon receipt of the written determination of no responsiveness, the Proposer may submit a written request for a Disqualification Review within the timeframe specified in the written determination. 3) A request for a Disqualification Review may, in the City's' sole discretion, be denied if the request does not satisfy all of the following criteria: a) The person or entity requesting a Disqualification Review is a Proposer; b) The request for a Disqualification Review is submitted timely (i.e., by the date and time specified in the written determination); and c) The request for a Disqualification Review asserts that the determination of disqualification due to bid/proposal no responsiveness was erroneous (e.g., factual errors, etc.) and provides factual support on each ground asserted as well as copies of all documents and other material that support the assertions. 4) The.Disqualification Review shall be completed and the determination shall be provided to the requesting Proposer, in writing, prior to the conclusion of the evaluation. process. F) Debriefing Process For solicitations where proposals are evaluated and scored in accordance to, Evaluation of Proposals, the following provisions shall apply: Appendix A. Page 2 of 4 1) Upon completion of the evaluation, City will notify the remaining Proposers in writing that the City is entering negotiations with another Proposer. Upon receipt of the letter, any non - selected Proposer may submit'a written request for a Debriefing within the timeframe specified in the letter. A request for a Debriefing may, in the City's sole discretion, be denied if the request is not received within the specified timeframe: 2) The purpose of the Debriefing is to compare the requesting Proposers response to the solicitation document with the evaluation document. The requesting Proposer shall be debriefed only on its response. Because Contract negotiations are not yet complete, responses from other Proposers shall not be discussed, although the City may inform the requesting Proposer of its relative ranking. 3) During or following the Debriefing, the City will instruct the requesting Proposer of the manner and timeframe in which the requesting Proposer must notify the City of its intent to request a Proposed Contractor Selection Review, below, if the requesting Proposer is not satisfied with the results of the Debriefing. G) Proposed Contractor Selection Review Any Proposer that has timely submitted a notice of its intent to request a Proposed Contractor Selection Review as described in paragraph F, above, may submit a written request for a Proposed Contractor Selection Review in the manner and timeframe as specified by the City. For low -bid solicitations, where applicable, upon selection of the lowest -cost, responsive, and' responsible bidder, the City will notify the remaining bidders in writing that the City is entering negotiations with another bidder. The City will instruct the remaining bidders of the manner and timeframe in which each remaining bidder must notify the City of its intent to request a Proposed Contractor Selection Review, should such remaining bidder desire to have such a review performed. A request for a Proposed Contractor Selection Review may, in the City's' sole discretion, be denied if the request does not satisfy all of the following criteria: 1) The person or entity requesting a Proposed Contractor Selection Review is a Proposer. 2) The request for a Proposed Contractor Selection Review is submitted timely (i.e., by the date and time specified by the City). 3) The person or entity requesting a Proposed Contractor Selection Review asserts in Appropriate detail with factual reasons one or more of the following grounds for review: a) The City materially failed to follow procedures specified in its solicitation document. This includes: (i) Failure to correctly apply the standards for reviewing the proposal format requirements. (ii) Failure to correctly apply the standards, and/or follow the prescribed methods, for evaluating the proposals as specified in the solicitation document. Appendix A. Page 3 of 4 (iii)Use of evaluation criteria that were different from the evaluation criteria disclosed in the solicitation document. b) The City made identifiable mathematical or other errors in evaluating bids/proposals, resulting in the Proposer receiving an incorrect score and not being selected as the recommended Contractor. c) For applicable solicitations where responses are evaluated and scored, a member of the Evaluation Committee demonstrated bias in the conduct of the evaluation. d) Another basis for review as provided. by State or Federal. law. 4) The request for a Proposed Contractor Selection Review sets forth sufficient detail to demonstrate that, but for the City's' alleged failure, the Proposer would have been the lowest - cost, responsive, and responsible bid or the highest -scored proposal, as the case may be. Upon completing the Proposed Contractor Selection Review, the City's' representative shall issue a written decision to the Proposer within a reasonable time following receipt of the request for a Proposed Contractor Selection Review, and always before the date the Contract award recommendation is to be heard by the City Council. The written decision shall additionally instruct the Proposer of the manner and timeframe for requesting a review by a City Review Panel, paragraph H, below. H) City Review Panel Process 1) Any Proposer that is not satisfied with the results of the Proposed Contractor Selection Review may submit a written request for review by a City Review Panel in the manner and timeframe specified by the City in the City's written decision regarding the Proposed Contractor Selection Review. 2) A request for review by a City Review Panel may, in the City's sole discretion, be denied if the request does not satisfy all of the following criteria: a) The person or entity requesting review by a City Review Panel is a Proposer. b) The request for a review by a City Review Panel is submitted timely (i.e., by the date and time specified by the City). c) The person or entity requesting review by a City Review Panel has limited the request to items raised in the Proposed Contractor Selection Review and new items that (a) arise from the City's written decision and (b) are one of the appropriate grounds for requesting a Proposed Contractor Selection Review as listed in paragraph G above. 3) Upon completion of the City Review Panel's review, the Panel will forward its report to the Director of the Departments' that solicited the proposal, which will provide a copy to the Proposer. Appendix A. Page 4 of 4 APPENDIX B SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] Contractor: Responsible Principal of Contractor: Notice Information - Contractor: Notice Information - City: Commencement Date: Termination Date: Consideration: COVER PAGE [insert name of contractor] [insert name, title] [insert name of contractor] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] City of Vernon . 4305 Santa Fe Avenue Vernon, CA 90058 Attention: [insert department head] [insert department head title] Telephone: (323) 583-8811 ext. [insert] Facsimile: [insert fax number] [insert commencement date] [insert termination date], unless extended pursuant to Section 1 Total not to exceed $[insert amount] (includes all applicable. sales tax); and more particularly described in Exhibit B Records Retention Period Three (3) years SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] THIS AGREEMENT is made and entered into as of ("Effective Date"), by and between the City of Vernon, a California charter City and California municipal corporation ("City"), and [Contractor's Name], a [State incorporated in] corporation ("Contractor'). City and Contractor are collectively referred to herein as the "Parties." RECITALS A. City desires to have certain [brief description of services] services provided as more fully set forth in the Scope of Services, attached hereto and incorporated herein as Exhibit A. B. Contractor represents it is qualified and capable of furnishing the labor, materials, and expertise necessary to perform such services in accordance with the terms and conditions set forth in this Agreement. NOW, THEREFORE, the Parties agree as follows: Section 1. Term and Time of Performance. (a) This Agreement shall commence upon the Commencement Date listed on the Cover Page, and shall remain and continue in effect through the Termination Date listed on the Cover Page, unless sooner terminated pursuant to the provisions of this Agreement. City may renew this Agreement on a year-to-year basis at its discretion. (b) In the event that City renews this Agreement, Contractor may submit a proposal to increase its rates no later than thirty (30) days after receiving notice of City's intent to renew. Any increase in rates must be approved by City before such increase can take effect. If City fails to approve the proposed increase within thirty (30) days of receipt, Contractor may terminate the renewal by giving thirty (30) days written notice. Section 2. Performance. (a) Contractor shall perform the services and tasks described and set forth in the Scope of Services, Exhibit A ("Services"). Additional services must be mutually agreed upon in writing signed by both Parties prior to performance of those additional services. (b) Contractor shall at all times faithfully, competently and to the best of its ability, experience, and talent, perform all Services under this Agreement in accordance with the standard of care and skill ordinarily exercised by members of the profession currently practicing in the same locality as the City under similar circumstances and in a manner reasonably satisfactory to City. Contractor shall at all times comply with the highest ethical standards when performing Services for the City. (c) Contractor shall keep itself informed of all local, state, and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its Services pursuant to this Agreement. Contractor shall at all times observe and comply with all such ordinances, laws and regulations. City, and its officers, 2 officials, employees, agents or volunteers shall not be liable at law or in equity occasioned by failure of Contractor to comply with this section. (d) Contractor will not be compensated for any work performed not specified in Exhibit A unless City authorizes such work in advance and in writing. Section 3. Compensation. (a) City. agrees to compensate Contractor, and Contractor agrees to accept in full satisfaction for the services and any supplies or goods required by this Agreement, a sum not to exceed the Consideration set forth on the Cover Page and more particularly described in Exhibit B. The Consideration shall constitute reimbursement of Contractor's fee for the Services as well as for all actual and necessary expenditures reasonably incurred in the performance of this Agreement (including without limitation, all labor, materials, equipment, supplies, delivery, tax, assembly, and installation, as applicable). (b) There shall be no claims for additional compensation for reimbursable expenses and Contractor shall not be reimbursed for any additional expenses. (c) Change in the scope of services, duties, obligations, durations or total compensation, shall be by written authorization only by the City. A form of Change Order is set forth in Exhibit C attached hereto and incorporated by reference. Section 4. Method of Payment. City shall pay Contractor the Consideration in accordance with the Cost Schedule set forth in Exhibit B. Section 5. Responsible Principals. (a) Contractor's Responsible Principal set forth on the Cover Page shall be principally responsible for Contractor's obligations under this Agreement and shall serve as principal liaison between City and Contractor. Designation of another Responsible Principal by Contractor shall not be made without prior written consent of City. (b) City's Responsible Principal shall be the City Administrator or his designee who shall administer the terms of the Agreement on behalf of City. Section 6. Personnel. (a) All persons performing Services shall have all the necessary technical expertise, permits, professional licenses, certificates, training, and other qualifications required by this Agreement or other applicable laws. Contractor shall provide City with said permits, licenses, and certificates at the request of City. (b) Contractor represents that it has, or shall secure at its own expense, all personnel required to perform Contractor's Services under this Agreement. All personnel engaged in the work shall be qualified to perform such Services. Section 7. Permits and Licenses. Contractor shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of services under this Agreement, including a business license. Except as provided herein below, Contractor shall obtain and pay for all permits and licenses required by federal, state or local law, rule or regulation. Costs for obtaining City licenses and permits required under this Agreement shall be waived. Section 8. Access. Contractor shall comply with all reasonable access and other restrictions that City may impose. No access to City property for performance of the Services shall be permitted prior to delivery to City of proof of insurance paid and maintained by Contractor. Section 9. Contractor's Duties and Representations. Contractor represents, covenants and agrees as follows: (a) There are no obligations, commitments, or impediments of any kind that will limit or prevent performance of the Services: (b) Contractor presently has no interest and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of the Services contemplated by this Agreement. No person having any such interest shall be employed by or be associated with Contractor. (c) There is no litigation pending against Contractor and Contractor is not the subject of any criminal investigation or proceeding, and neither Contractor nor its personnel, to its actual knowledge, have been convicted of a felony. Section 10. Independent Contractor. (a) Contractor is and shall at all times remain, as to City, a wholly independent contractor. The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor's exclusive direction and control. Neither City nor any of its officers, officials, employees, agents, or volunteers shall have control over the conduct of Contractor or any of Contractor's officers, employees, or agents except as set forth in this Agreement. Contractor shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, officials, employees, agents, or volunteers of City. Contractor shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. (b) No employee benefits shall be available to Contractor or its officers, employees, or agents in connection with the performance of this Agreement. Except for Consideration paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing services hereunder for the City, City shall not be liable for compensation or indemnification to Contractor or its officers, employees, or agents for injury or sickness arising out of performing services hereunder. (c) Contractor agrees to pay and be responsible for paying all Federal, State and local taxes for compensation received by Contractor from City while performing services for City. Section 11. Termination. (a) Termination Right. City may, at any time, for any reason or for no reason, with or without cause, terminate this Agreement, by serving upon the Contractor at least five (6) calendar days prior written notice. Upon receipt of such notice, Contractor shall immediately cease all work under this Agreement, unless the notice provides otherwise. (b) In the event of termination or cancellation of this Agreement by City, due to no fault or failure of performance by Contractor, Contractor shall be paid based on the percentage of work satisfactorily performed at the time of termination. In no event shall Contractor be entitled to receive more than the amount that would be paid to Contractor for the full performance of the services required by this Agreement. Contractor shall have no other claim against City by reason of such termination, including any claim for compensation. (c) Actions Subsequent to Termination. In the event of termination of this Agreement, Contractor shall deliver all Confidential Information, as defined in Section 13 below, to City within thirty (30) days after the termination of this Agreement. Contractor shall also take all such other action as City reasonably requires and shall cooperate with City to effectuate an orderly and systematic termination of Contractor's duties and activities hereunder. (d) All of the terms and conditions in the Agreement related to payment, confidentiality, indemnification, dispute resolution and waiver shall survive termination of this Agreement. Section 12. Limitation of City's Liability. City's liability on any kind of claim for any loss or damage arising out of, in connection with, or resulting from this Agreement, shall in no case exceed the amount that would be paid to Contractor for the full performance of the services required by this Agreement. In no event shall City be liable for anticipated profits or for incidental, consequential or punitive damages. City shall not be liable for penalties of any description. Section 13. Confidential Status: Disclosure of Information. (a) Confidential Status; Disclosure of Information. All data, customer information, business practices, business methods, privileged information, trade secrets, financial statements, floor plans, designs, blueprints, maps, surveys, drawings, models, reports, correspondence, logs, documents, materials or other information developed or created by Contractor, received by Contractor, revealed to Contractor, or provided to Contractor for the performance of this Agreement ("Confidential Information") are deemed confidential and shall not be disclosed by Contractor to any third party without City's prior written consent. City reserves all,rights to Confidential Information. City shall grant consent if disclosure is legally required. All Confidential Information shall be returned to City upon completion or termination of this Agreement. Contractor's covenant under this section shall survive the termination of this Agreement. City may disclose to third parties any Confidential Information at its sole discretion. (b) Contractor's obligation not to disclose any Confidential Information shall not extend to information that: I. was in the possession of, or was rightfully known by, the Contractor without an obligation to maintain its confidentiality prior to receipt from City; this Agreement; ii. is or becomes generally known to the public without violation of 5 iii. is obtained without an obligation of confidentiality by the Contractor in good faith from a third party having the right to disclose it without an obligation of confidentiality; or iv. information which is required to be disclosed pursuant to any court order or directive having the force of law. (c) The provisions of this section shall survive the termination of this Agreement. Section 14. Technical Materials. City reserves all rights to any and all tools, dies, patterns, plates or other similar technical materials furnished or paid for by City, and Contractor shall use such materials in strict confidentiality and shall return the same to City at its request upon completion or termination of this Agreement. Contractor shall not copy or otherwise use any such materials for any purposes other than the completion of this Agreement. Contractor's covenant under this section shall survive the termination of this Agreement. Section 15. Records and Inspections. Contractor shall maintain full and accurate records with respect to all matters covered under this Agreement for Records Retention Period. City shall have access, without charge, during normal business hours to such records, and the right to examine and audit the same and to make copies and transcripts therefrom, and to inspect all program data, documents, proceedings and activities. Section 16. Default. Contractor's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Contractor is in default under the terms of this Agreement, City shall have no obligation or duty to continue compensating Contractor for any work performed after the date of default and can terminate this Agreement immediately by written notice to Contractor. Section 17. Indemnification. Contractor agrees to defend, indemnify, protect and hold harmless City, its officers, officials, employees, agents, and volunteers from and against any and all claims, suits, demands, actions, losses, damages, judgments, settlements, penalties, . fines, defensive costs or expenses, including without limitation, interest, attorneys' fees and expert witness fees, or liability of any kind or nature arising out of or attributable to the acts or omissions of Contractor, or Contractor's officers, employees, or agents which in any way arise out of, result from, or are in any way related to the performance or non-performance of this Agreement, excepting only liability arising out of the sole negligence or. willful misconduct of City, its officers, officials, employees, agents, or volunteers. THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT AND SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION. The obligations in this section are in addition to Contractor's duty to provide insurance and shall not be limited by any limitation on the amount or type of insurance coverage carriedby Contractor. Section 18. Insurance. (a) Contractor shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Comprehensive General Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by Contractor or Contractor's officers, employees, or agents. (b) Contractor shall at all times during the term of this Agreement carry, maintain, and keep in. full force and effect, a policy or policies of Comprehensive Vehicle Liability insurance covering personal injury and property damage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit, covering any vehicle utilized by Contractor or Contractor's officers, employees, or agents in performing the services required by this Agreement. (c) Contractor agrees to maintain in force at all times during the performance of work under this Agreement workers compensation insurance as required by law. (d) Contractor shall at all times during the term of this Agreement carry, maintain, and keep in full force andeffect, a policy or policies of Excess Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, and provide policy coverage and terms at least as broad as those required in the primary insurance. (a) Contractor shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Professional Liability Insurance with minimum limits of One Million Dollars ($1,000,000) on a claims made basis, to protect City from any losses sustained through any errors or omissions committed by Contractor or Contractor's officers, employees or agents in performing Serivices required by this Agreement. Further, if the policy is on other than an occurrence basis, Contractor shall maintain in full force and effect such insurance for one year after performance of work under this Agreement is completed. (f) Contractor shall require each of its sub -consultants or sub -contractors to maintain insurance coverage that meets all of the requirements of this Agreement. (g) The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least a B+; VII in the latest edition of Best's Insurance Guide. (h) Contractor agrees that if it does not keep the aforesaid insurance in full force and effect City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may take out the necessary insurance and pay, at Contractor's expense, the premium thereon. (i) At all times during the term of this Agreement, Contractor shall maintain on file with the Risk Manager, a certificate or certificates of insurance, satisfactory to the City Attorney and Risk Manager, along with a copy of the policy declarations page for each policy showing that the aforesaid policies are in effect in the required amounts. Upon request by City, Contractor shall cause its insurers to issue certified copies of the insurance policies evidencing that the coverage and policy endorsements required under this Agreement are maintained in force. Contractor shall, prior to commencement of work under this Agreement, file with the Risk Manager, such certificate or certificates and a copy of the policy declarations page for each policy, The policies of insurance required by this Agreement shall contain an additional insured endorsement naming the City, its officers, officials, employees, agents, and volunteers as insured's. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty (30) days prior written notice to City, and specifically stating that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement. 0) The insurance provided by Contractor shall be primary to any coverage available to City, and any insurance or self-insurance maintained by City, its officers, officials, employees, agents, or volunteers shall be excess of Contractor's insurance and shall not contribute with it. The policies of insurance required by this Agreement shall include provisions for waiver of subrogation. Contractor hereby waives all rights of subrogation against City, its officers, officials, employees, agents, and volunteers. (k) Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, Contractor shall either reduce or eliminate the deductibles or self -insured retentions with respect to City, or Contractor shall procure a bond guaranteeing payment of losses and expenses. Section 19. Certification. In accordance with the.provisions of Section 3700 of the Labor Code, Contractor shall secure the payment of compensation to Contractor's employees. By executing this Agreement, Contractor certifies the following: Contractor is aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and Contractor will comply with such provisions before commencing the performance of the work of this Agreement. Section 20. Standard Specifications. The work done pursuant to this Agreement shall be done in accordance with the provisions of the most current edition of "Standard Specifications for Public Works Construction" (commonly known as "the Green Book") including Supplements, prepared and promulgated by the Southern California Chapter of the American Public Works Association and the Associated General Contractors of California, which specifications are hereinafter referred to as the "Standard Specifications." The provisions of these Standard Specifications shall apply to the work performed under this Agreement, unless different standards are specified in Exhibit A or agreed to in writing by the City. Section 21. Compliance with Laws. Contractor shall keep itself informed of and. comply with all Applicable Laws, including without limitation, the Fair Labor Standards Act, the Occupational Safety and Health Act and all those Applicable Laws relating in any way to employment practices and protection of the environment. Contractor shall not discriminate against any employee or any applicant for employment for reasons of race, color, creed, religion, sex, sexual preference, age or national origin. For purposes of this section, "Applicable Laws" shall mean any and all laws, regulations, rules, orders, directives, judgments, decrees, permits, approvals or other applicable requirements of any governmental entity or agency having jurisdiction that are applicable to any aspect of this Agreement that are in force on the Effective Date and as they may be enacted, issued or amended during the term of this Agreement. Section 22. Enforcement of Waoe and Hour Laws. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation • for all hours worked in excess of 8 hours per day at not less than 1 %: times the basic rate of pay. Living Wages. In addition, Contractor, or Subcontractor, if any, working on City service contracts of any amount, as to all employees spending time on City contracts shall observe the City's Living Wage Ordinance and all requirements thereof at all times on City contracts. The Current Living Wage Standards are set forth in Exhibit D. Upon request, certified payroll shall be provided to the City. Section 23. Materials and Workmanship. City shall have the right to inspect any material used. Material furnished shall be new, complete, ready -for -use and of the latest model, shall not have been used in demonstration or other services and shall have all the usual equipment as shown by its manufacturer's current specifications and catalogs, unless otherwise specified. Equipment, supplies or services that fail to comply with the Agreement requirements regarding design, material or workmanship may be rejected at the option of City. Any materials rejected shall be removed from City premises at the Contractor's sole expense. Section 24. Assignment of Unfair Business Practices. Contractor and its subcontractor offers and agrees to assign to City all rights, title, and Interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700), of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time City tenders final payment to Contractor, without further acknowledgment by the parties. Section 25. Assignment and Subcontracting. Contractor shall not assign or attempt to assign any portion of this Agreement, or subcontract any required performance hereunder, without the prior written approval of City. Any assignment or subcontract made in violation of this section is invalid and void. In the event City grants written approval to Contractor to subcontract work under this Agreement, Contractor is prohibited from using a subcontractor who is ineligible to perform work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code. Section 26. Arbitration and Venue. Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof,including the determination of the scope or applicability of this Agreement to arbitrate, shall be determined by arbitration in Los Angeles, California. The arbitration shall be administered by JAMS pursuant to its Streamlined Arbitration Rules and Procedures. The arbitrator shall be a retired judge. All decisions of the arbitrator shall be in writing, and the arbitrator shall provide written reasons for their decision. The arbitration decision shall be final and binding on the Parties. Judgment on the award may be entered in any court having jurisdiction pursuant to this Agreement. Notwithstanding the foregoing, the parties shall be permitted to access the court system to enforce any arbitration award. The exclusive jurisdiction and venue under this Agreement shall be the Superior Court of California, Los Angeles County. Section 27, Attorneys Fees. In the event a dispute, claim or litigation arises regarding this Agreement, the prevailing party shall be entitled to reimbursement for reasonable attorneys N fees and actual costs, which may be set by the arbitrators or the court in the same action or in a separate action brought for that purpose, in addition to any other relief which is obtained. Section 28. Governing Law. This Agreement shall be interpreted and enforced according to, and the Parties rights and obligations governed by, the domestic law of the State of California, without regard to its laws regarding choice of applicable law. Section 29. Entire Agreement and Modifications. This Agreement, including attachments incorporated herein by reference, represents the entire integrated agreement and understanding between the Parties, and supersedes all prior or contemporaneous negotiations, representations, agreements, understandings and statements, written.or oral. This Agreement may only be modified in writing and signed by both Parties. Section 30. Waiver. The waiver by either party of a breach or default by the other party shall not be deemed a waiver of any different or later breach whether of the same or other covenant or condition; nor shall any delay or omission by either party to exercise any right it may have hereunder operate as a waiver of any breach or default of such a right. The failure of either party to this Agreement to exercise any of its rights under this Agreement does not constitute a breach thereof and shall not be deemed to be a waiver of such rights or a waiver of any subsequent breach. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. Section 31. Force Maieure. Neither party shall be considered in default of any of its obligations under this Agreement when a failure of performance shall be due to an uncontrollable force. The term "uncontrollable force" shall mean flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, federal, state, or municipal action, statute, ordinance, or regulation, embargoes of the United States Government or any other government, which by exercise of due diligence such party could not reasonably have been expected to avoid and by.exercise of due diligence has been unable to overcome. Either party rendered unable to fulfill any of its obligations under this Agreement by reason of an uncontrollable force shall give written notice within five (5) business days of such fact to the other party and shall exercise due diligence to remove such inability with all reasonable dispatch. Section 32. City Not Obligated to Third Parties. City shall not be obligated or liable under this Agreement to any party other than Contractor. City shall timely notify Contractor of the receipt of any third -party claim relating to this Agreement. City shall be entitled to recover its reasonable costs incurred in providing the notification required by section. Section 33. Notices. All notices, approvals, consents and other communications between the Parties shall be In writing, and shall be sent by certified mail (return receipt requested) or other delivery service which provides evidence of delivery, using the address set forth on the Cover Page under "Notice Information - City" or "Notice Information — Vendor," as appropriate, or at such other address as may be furnished by either party to the other in writing. Mailed notices will be deemed communicated as of the day of receipt. Section 34. Cover Page and Exhibits. The Cover Page and all documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. 10 Section 35. Headings. Headings used in this Agreement are for convenience and ease of reference only and shall not affect the interpretation of the Agreement. Section 36. Survival of Terms. All of the terms and conditions in this Agreement related to payment, confidentiality, indemnification, dispute resolution and waiver shall survive termination of this Agreement. Section 37. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid under applicable law. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect, and shall in no way be affected, impaired or invalidated. Section 38. Authority to Execute This Agreement. The person or persons executing this Agreement on behalf of Contractor warrants and represents that he or she has the authority to execute this Agreement on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations under this Agreement. [Signatures Begin on Next Page]. 11 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date stated in the introductory clause. City of Vernon, a California charter City and California municipal corporation 0 Mayor / Mayor Pro-Tem ATTEST: Willard G. Yamaguchi, City Clerk APPROVED AS TO FORM: Willard G. Yamaguchi, Chief Deputy City Attorney [CONTRACTOR'S NAME, a [State incorporated in] corporation By: Name: Title: By: Name: Title: 12 WaTAi�l SCOPE OF SERVICES 13 EXHIBIT B FEES [Example (Delete and replace actual terms)] [Contractor shall be paid $[insert flat amount] to perform all Services described in Exhibit A.] [Contractor shall invoice City [FREQUENCY] for Services provided under this Agreement.] [Example (Delete and replace with actual terms)] [Invoices shall include the period for which Services were provided, the dates of such Services, and a description of the Services provided for that billing period. Each invoice shall include copies of timesheets and other supporting documents as City may require.] [Payments of each invoice shall be made by City within thirty (30) days following receipt of each invoice as to all non -disputed fees. If City disputes any of Contractor's fees, it shall give written notice to Contractor within thirty (30) days of receipt of the disputed invoices. Any amounts in dispute shall be withheld until resolution.] 14 EXHIBIT C CHANGE ORDER 15 EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers. provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. IT-1 APPENDIX C APPENDIX D n t� �� A� 4 i ;: --4s lazy ,�.^��-� -, - - --------- - — — — — — — — — — — — — - — — — — — — — — - — — — - — — — — — — — — — — — — — - — — — — — — — — — — — — — — — — — — — — — — — — Irk !;4� Lul, ........... -------------- ---------------- --- — — --------- ----------- ---------- 91 0 12 Agile j AA lr I i I COA xj A, 1I iijijip w, OFfff fill ...... . . \ , q � � • . ��� m L� . . \�rT3 N . . - � ��)§{d . . � � §) •/ 2�� � § � � I p g I i q'51 Ipr1 p �4q � y FF1l F-1 �R!—Ixl pa iy �etl NOyo r�'B i��� qN &S�a ed° * y `5w � I y m pQ 1A(�ge�B�1I... c 3 I'l l'sas ge �4ptp���� fixxi AE2B��S o" jig; a is adz p�ap�p�6pp�¢4� pp {tl \8pl8p r 4 2qg a�p a�sa�s��6q 5p ^ Yu :p cFrtrtpp'p�% p i i a g N v FWm S �60 RECEIVED RECEIVED JUL 11 2012 1* JUL 10 2012 CITY CLERK'S OFFICE STAFF REPORT CITY ADMINISTRATION LIGHT & POWER DATE: July 5, 2012 TO: Honorable Mayor and City Council FROM: Carlos R. Fandino Jr., Director of Light & Power RE: 2012 Natural Gas Transmission Line — In -Line Test Instrument Assessment PURPOSE Vernon's gas transmission system commenced operation in 2005 with the beginning of operation of MGS. The Department of Transportation (DOT) regulates pipeline safety and requires that every seven years gas transmission lines be assessed for safety. Accordingly, Vernon is required to assess its transmission line in 2012. Staff recommends using In -Line test Instruments (ILI) for the assessment. This method involves inserting into the pipeline sophisticated test instruments and pushing them through the line using natural gas a propellant. The test instruments once deployed provide detailed information on the condition of the steel pipeline and its integrity. RECOMMENDATION It is recommended that this contract be approved and authority be granted to advertise the attached Capital Improvement Project (CIP) at the July 17, 2012 meeting. FISCAL IMPACT Not to exceed $100,000.00. CRF:arn INTEROFFICE 10 MEMORANDUM Light & Power Department DATE: July 3, 2012 TO: Mark Whitworth, City Administrator ' `0 1 FROM: Carlos Fandino, Director of Light & Power 6 SUBJECT: 2012 Natural Gas Transmission Pipeline Integrity Management Assessment — Request For Proposal (RFP) Vernon's natural gas transmission system commenced operation in 2005 with the beginning of operation of MGS. The Department of Transportation (DOT) regulates pipeline safety and requires that every seven years gas transmission lines be assessed for safety. Accordingly, Vernon is required to assess its transmission line in 2012. Staff recommends using in -line test instruments (ILI) for the assessment. This method involves inserting into the pipeline sophisticated test instruments and pushing them through the line using natural gas as a propellant. Vernon's gas line was not originally set up for ILI testing and will be modified to accommodate these devices. City issued an RFP to seek contracting services to install launcher and receiver under Contract No. GS-0013. The contract will be awarded to A.M. Ortega Construction to construct the launcher and receiver. To proceed with ILI, attached is a prepared services contract to be released to qualified contractors to bid on the ILI project. I recommend that the attached Request For Proposal along with the Services Agreement be reviewed and approved by City Attorney. Pending City Attorney's approval as to form I request that this item be placed on the next City Council meeting agenda for consideration and approval. The estimated to cost to implement ILI is approximately $100,000 and this item is listed in 2012-2013 Natural Gas budget. If you need additional information, please let me know. CF/arn Enclosure C: Ali Nour Doc. Control — Gas Division INTEROFFICE MEMORANDUM Light & Power Department DATE: July 3, 2012 TO: Carlos Fandino, Director of Light & Power FROM/ A1JV i� Nour, Engineering Manager SUBJECT: 2012 Natural Gas Transmission Pipeline Integrity Management Assessment — Request For Proposal (RFP) Vernon's natural gas transmission system commenced operation in 2005 with the beginning of operation of MGS. The Department of Transportation (DOT) regulates pipeline safety and requires that every seven years gas transmission lines be assessed for safety. Accordingly, Vernon is required to assess its transmission line in 2012. Staff recommends using in -line test instruments (ILI) for the assessment. This method involves inserting into the pipeline sophisticated test instruments and pushing them through the line using natural gas as a propellant. Vernon's gas line was not originally set up for ILI testing and will be modified to accommodate these devices. City issued an RFP to seek contracting services to install launcher and receiver under Contract No. GS-0013. The contract will be awarded to A.M. Ortega Construction to construct the launcher and receiver. To proceed with ILI, attached is a prepared services contract to be released to qualified contractors to bid on the ILI project. I recommend that the attached Request For Proposal along with the Services Agreement be reviewed and approved by City Attorney. Pending City Attorney's approval as to form I request that this item be placed on the next City Council meeting agenda for consideration and approval. The estimated to cost to implement ILI is approximately $100,000 and this item is listed in 2012-2013 Natural Gas budget. If you need additional information, please let me know. ARN/ Enclosure C: Doc. Control — Gas Division