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
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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