Resolution No. 2012-219RESOLUTION NO. 2012-2.15
A RESOLUTION OF.THE CITY COUNCIL OF THE CITY OF
VERNON ACCEPTING THE,BID OF ENDURO PIPELINE
SERVICES, INC., AND APPROVING AND AUTHORIZING THE
EXECUTION OF A SERVICES AGREEMENT BY AND BETWEEN
THE CITY OF VERNON AND ENDURO PIPELINE SERVICES,
INC., FOR THE NATURAL GAS TRANSMISSION PIPELINE IN
LINE INSPECTION
WHEREAS, on July 17, 2012, the City Council of the City of.
Vernon adopted Resolution No. 2012-138, authorizing.the issuance of
bid specifications for natural gas transmission pipeline in line
inspection (the "Services"); and
WHEREAS, a comprehensive review of three proposals was
conducted in response to said request for proposals; and
WHEREAS, by Memorandum dated October 29, 2012, the Director
of Light & Power has recommended that the City accept the bid of
Enduro Pipeline Services, Inc. ("Enduro"), as the lowest responsive
and responsible bidder, and enter into a services agreement with
Enduro, setting forth the terms and conditions under which Endurowill
perform the Work (the "Agreement").
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 above recitals contained are true and
correct
SECTION 2: The City Council of the City of Vernon finds
that the proposed contract is exempt under the California
EnvironmentalQuality Act (CEQA), in accordance with Section
15061(b)(3), the general rule that CEQA only app°lies to projects that
may have an effect on the environment.
I;
SECTION 3 The City Council of the City of Version hereby
approves the Agreement with Enduro Pipeline Services, Inc., a copy of
which is attached hereto as Exhibit A.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for,
and on behalf of, the City of Vernon and the Interim City Clerk, or
Deputy City Clerk, is hereby authorized to attest thereto.
SECTION 5: The City Council of the City of Vernon hereby
instructs the City Administrator, or his designee, to take whatever
actions are deemed necessary or desirable for the purpose of
implementing and carrying out the purposes of this Resolution and the
transactions herein approved or authorized, including but not limited
to, any non -substantive changes to the Agreement attached herein.
SECTION 6: The City Council of the City of Vernon hereby
directs the Interim City Clerk, or the Interim City Clerk's designee,
to send a fully executed Agreement to:
Enduro Pipeline Services, Inca
Attention: John Winzenburg, Sr. Project Estimator
5002 S 45th West Ave
Tulsa, OK 74107
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SECTION 7: The Interim City Clerk of the City of Vernon
shall certify to the passage, approval and adoption of this
resolution, and -the Interim City Clerk of the City of Vernon shall
cause this Resolution and the Interim City Clerk's certification to be
entered in the File of Resolutions of the Council of this City.
APPROVED AND ADOPTED this 6th day of November,y2012.
4Y - -,
Name: Willi J. Davis
Title: Mayor
ATTE
Dan Reed, Interim City Clerk
3-
STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, Dana Reed, Interim City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 2012-219,
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, November 6, 2012, and thereafter was duly signed by the Mayor
or Mayor Pro-Tem of the City of, Vernon.
Executed this. C/ day of November, 2012, at Vernon, California.
Da a Reed, Interim City Clerk
(SEAL)
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EXHIBIT A
SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND ENDURO
PIPELINE SERVICES, INC. FOR NATURAL GAS TRANSMISSION PIPELINE IN LINE
INSPECTION
Contractor:
Responsible Principal of Contractor:
Notice Information - Contractor:
"COVER PAGE"
Enduro Pipeline Services, Inc.
John Winzenburg, Sr. Project Estimator
Phone: (918) 446-1934
Email: johnw@enduropls.com
Attn: John Winzenburg, Sr. Project Estimator
Enduro Pipeline Services, Inc.
5002 S 45th West Ave
Tulsa, OK 74107
Notice Information - City: Attn: Carlos Fandino, Director of Light and Power
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Commencement Date:
Termination Date:
Consideration
Records Retention Period
Phone: (323) 583-8811 x 398
Email: cfandino@ci.vernon.ca.us
December 1, 2012
November 30, 2013
Total not to exceed $100,000.00, as more
particularly described in Exhibit B
3 years
SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND ENDURO
PIPELINE SERVICES, INC. FOR NATURAL GAS TRANSMISSION PIPELINE IN LINE
INSPECTION
THIS AGREEMENT is made and entered into as of December 1, 2012 ,
("Effective Date"), by and between the City of Vernon, a California charter City and California
municipal corporation ("City"), and Enduro Pipeline Services, Inca an Oklahoma 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
Tore 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"). Exhibit A consists of 11 pages from Contractor's
proposal to City. Certain language in Exhibit A pertaining to indemnification and payment terms
has been struck out. The language pertaining to the same within the Agreement otherwise shall
prevail 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:
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(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,
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 Director of Light & Power
Department 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.
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.
C!
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 (5)
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;
ii. is or becomes generally known to the public without violation of
this Agreement;
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.
(a) 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.
(b) City agrees to defend, indemnify, protect and hold harmless Contractor, 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 City,
or City'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
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only liability arising out of the sole negligence or willful misconduct of Contractor, 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 carried by
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 and effect, 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.
(e) Pollution liability insurance. (Not Required.)
(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
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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
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Effective Date and as they may be enacted, issued or amended during the term of this
Agreement.
Section 22. Enforcement of Wage 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'/2 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. Licenses and Permits. 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 permits required under this Agreement will be waived. All
requirements for obtaining permits (including City permits) remain in effect and are not waived;
only the costs of City permits are waived.
Section 25. 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 26. 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.
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Section 27. 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. This clause shall not preclude Parties from seeking
provisional remedies in aid of arbitration from a court having jurisdiction pursuant to this
Agreement. The exclusive jurisdiction and venue under this Agreement shall be the Superior
Court of California, Los Angeles County.
Section 28. 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
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 29. 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 30. 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 31. 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 32. 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 33. 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
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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 34. 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 35. 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.
Section 36. Headings. Headings used in this Agreement are for convenience and
ease of reference only and shall not affect the interpretation of the Agreement.
Section 37. 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 38. 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 39. 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 Enduro Pipeline Services, Inc., an Oklahoma
and California municipal corporation Corporation
By:
Williar� Davis, Mayor:, Name:
AT ST: ) ki
Dan Reed, Interim City Clerk
APPR
/5�f AS TO FORM:
( Al
+**1 Roar
City Attorney
Wow 6644 /14aru4*f 4 -
Title: 010
By:..,_._
Name:
12
EXHIBIT A
EXHIBIT A
SCOPE OF SERVICES
See attached pages 1 through 11 from the proposal of Enduro Pipeline Services, Inc., dated
August 20, 2012
13
I ENDURO
PIPELINE SERVICES, INC.
Enduro Re: B12-407
Date: August 20, 2012
CITY OF VERNON
10 Inch x 4.1 Miles
Vernon, CA
Submitted to:
City of.Vernon
Natural Gas Division
4305 South Santa Fe Ave.
Vernon, CA 90058
Attn: Dan Bergmann
Ph: 323-583-8811
Cell: 925-899-2578
Email• dbergmann@ci.vernon.ca.us
PAGE 1 ❑F 1 1
P.O. Box 34B9 • TULSA, ❑KLAHOMA 741 01 -34B9 ❑FFICE (91 B) 446-1 934
FAX (91 8). 446-81 25 . WWW.ENDUROPLS.COM
I ENDURO
LINE
PIPELINE DESCRIPTION
• Construction year: 1997 - 2000
• Location: Vernon, CA
• Product: Natural Gas (flared at the receiver)
• Flow rate: Required (recommend 3 to 5 mph)
• Operating pressure: 300 to 400 psig
• Wall thicknesses: 0.365 inch, Seamless, Gr. B
• Minimum bend radius: 1.5D
INFORMATION REQUIRED FOR ANALYSIS REPORTING
• Pipeline name: Cov 10" Main
Seam type: Seamless
• Pipe grade(s): Gr.B
MAOP/MOP: Required
• Pipe diameter: 10.750 inch
• Burst pressure criteria: Required
• Interaction rules: Required
• HCA locations: Required
Population density class: Required
** Customer is to provide a listing of pipeline features that includes data that is required to be
integrated within the final report pipeline listing. **
** Customer is to provide all available pipeline GPS data; preferred format is WGS84, decimal. **
PROJECT SCOPE OF WORK
Customer has requested the following services to complete this project:
• Gauge Plate Pig
o To prove pipeline bores for safe passage for the cleaning pig, Caliper DdLTM tool
and MFL DfLT"4 Combo tool
• Cleaning Pig
o To assess the cleanliness of the pipeline; may require multiple runs
• Caliper DdLTA1 Survey
o Run as a "Go/No-Go" to prove pipeline bores for safe passage for the MFL DfLTM
Combo tool.
• MFL DfLTM Combo Survey .
o Identifying Metal Loss >_ 20% and Deformations >_ 2% of pipe O.D.
• IMU / GPS Services
Customer will be responsible for providing adequate lifting equipment and personnel to safely
load/unload launch/receive and run any Enduro equipment.
'y Customer will provide adequate work space for the preparation of the equipment.
AN Customer will be responsible for maintaining a safe adequate flow media at all times.
The pipeline should be thoroughly cleaned prior to running Enduro's ILI tool(s).
PAGE 2 OF 1 1 -
P.O. Box 34B9 • TULSA, ❑KLAHOMA 74101-34B9 OFFICE (918) 446-1934
FAX (91 B) 446-B125 WWW.ENDUROPLS.COM
Gauge Plate Pig and Cleaning Pig
An Enduro ADV-2CC-2PRO (gauge plate) pig will be run to prove safe passage for Enduro's MFL
DfLTM Combo tool.
Upon successfully running the ADV-2CC-2PRO, an Enduro ADV-2CC/PL/2D-BRW/PL/2D-MG
cleaning pig will be run to assess the cleanliness of the pipeline.
• This cleaning pig is equipped with two (2) conical cups for sealing, four (4) scraper discs
for cleaning, wire wrap brushes for scrubbing and rare earth block magnets for the
removal of ferrous metal. Each pig section will be coupled together with a Pig Link u
joint.
• This pig will be assessed upon receiving and may require multiple runs to adequately
prepare the pipeline for the Caliper DdLTm and MFL DfLTM Combo surveys.
Caliper DdLTM Survey and MFL DfLTM Combo Survey
Upon successfully cleaning the pipeline, the Caliper DdLTm tool will be run in an on -stream,
Natural Gas, environment to identify the quantity, size and location of any dents, restrictions,
other anomalies (debris, excessive weld penetration, etc.) and.bends to determine if the pipeline
and MFL DfLTM Combo tool configuration are compatible.
• When the Caliper DdLTM tool is run as a "Go/No-Go" to prove pipeline bore(s) for the MFL
DfLTM Combo tool, only a "Field" report will be issued from the results. The "Field" report
will include dig sheets for any restriction(s) that exceed specifications for safe passage of
the MFL DfLTM Combo tool.
Upon review and confirmation of the Caliper DdLTm data, if no repairs are required, and/or no
further cleaning is required, the MFL DfLTM Combo tool will be run in an on -stream, Natural Gas,
environment to identify and log metal loss conditions along with any dents, other anomalies.
• Identifying Metal Loss >_ 20% and Deformations z 2% of pipe O.D.
IMU / GPS Services
Upon completion of the MFL DfLTM Combo Survey, the Enduro crew will collect above ground
GPS data at pre -determined locations along the pipeline route. These locations include:
o Launch and receive traps o Bends that have a change in
o Valves directions
o Any other locations of importance
The collected GPS data will be incorporated with the raw data from the MFL DfLTM Combo survey
to produce GPS coordinates (X,Y,Z) for all logged events; i.e. anomalies, welds, casings, wall
changes, etc.
Customer will be responsible for providing Enduro with landowner relations assistance throughout
the GPS data collection process.
Customer will be responsible for providing a R.O.W. that is easily accessible for Enduro
personnel during the GPS data collection process.
• Since the pipeline is located under city streets, the City of Vernon will be required to
provide personnel to assist with the above ground GPS collection.
PAGE 3 OF 1 1
ENDURO
PIPELINE SERVICES, INC.
ITEMIZED COST
Gauge Plate & Cleaning Pips (exclusive of shipping and handling charges
10 Inch ADV-2CC-2PRO: $ 890.00 ea. x 1-req'd
10 Inch ADV-2CC/PL/2D-BRW/PL/2D-MG: $ 4,100.00 ea. x 1-req'd
Rental Tracking Equipment
1 Transmitter — 2 Receivers — 2 Geophones
Caliper DdLT"9 Equipment Mob/De-Mob Charges
10 Inch Caliper pdLTM Tool: $ 8,500.00 ea. x 1-req'd.
Caliper DdLT"' BenchMarks: $ 250.00 ea. x 6—req'd
MFL DfLTm Equipment Mob/De-Mob Charges
10 Inch MFL DfLTM Combo Tool: $ 12,500.00 ea. x 1-req'd
MFL DfLT"' AGM: $ 250.00 ea. x 10-req'd
Personnel Mob/De-Mob Charges
DdLTPA / DfLTm Technician: $ 4,000.00 ea. x 2-req'd
Caliper DdLTm Base Survey Charge — "Golfo -Go"
10 Inch x 4.1 Miles: Vernon, CA
MFL DfLTM Combo Base Survey Charge
10 Inch'x 4.1 Miles: Vernon, CA
IMU / GPS Services
10 Inch x 4.1 Miles: Vernon, CA
Estimated Total
$ 890.00
$ 4,100.00
$ 1,500.00
$ 8,500.00
$ 1, 500.00
$ 12,500.00
$ 2,500.00
$ 8,000.00
$ 2,500.00
$ 15,000.00
$ 7,500.00
$ 64, 490.00
• Upon completion of running the Caliper DdL*rm tool, if the MFL DfLTm Combo Survey is
cancelled, the CaliperDdLTm Base Survey Charge will be $ 7,500.00.
• Estimated total is based on completing the gauge plate pig, cleaning pig, Caliper DdLTm
tool and MFL DfLT"° Combo tool on a single mobilization; allowing two (2) days to
complete.
• Additional days on -site will be subject to the Equipment and Personnel Standby Charges;
see page 7.
PAGE 4 OF 1 1
P.O. Box 3489 • TULSA, ❑KLAHOMA 741 01 -34B9 • OFFICE (91 B) 446-1 934
FAX (91 B) 446-61 25 WWW.ENDUROPLS.COM
OVERVIEW OF STANDARD DELIVERABLES FOR MFL DfLTM COMBO SURVEY
Executive Summary Report
• Provided in an electronic form (distributed by e-mail)
• Cover letter
• Metal Loss Listing
. o Metal Loss �! 70%, analysts verified
• Deformation Listing
o Deformations >_ 6% of pipe O.D., analysts verified
• Metal Loss vs. Station Plot
• Deformation vs. Station Plot
• Tool Speed Plot
• Dig sheets for Immediate Metal Loss and/or Deformations
Preliminary Final Report
• Provided in an electronic form (distributed by e-mail)
• A preliminary final report — prior to the issuance of the final report — will be provided for
the Customer to review and proof read. Customer is to provide feedback with regards to
any changes prior to issuing the final report.
• The preliminary final report will contain all the information provided in the final report..
Final Report
• Upon Customer approval of the preliminary final report, a final report will be provided.
• Cover letter
• Enduro Pipeline Listing
• Metal Loss listing
o Metal Loss > 20% (includes up to an average of 300 anomalies per mile)
o Dig Sheets
• . Deformation listing -
• Deformations z 2% of pipe O.D.
o Dig Sheets
• Deformation with Metal Loss listing
o Dig Sheets
• Metal in Close Proximity Listing
• Mfg. Indications Listing
• Debris Indication Listing
• Irregular Welds Listing
• Wall Thickness Changes Listing
• AGM Listing
• Bend Listing
• Metal Loss per Weld Joint Listing
• Casing Listing
• Repair Listing
• Histogram Plots
o Deformation Clock Position vs. Station
o Deformation Density vs. Station
o Deformation Depth vs. Station
o External Metal Loss Clock Position vs. Station
o External Metal Loss Depth vs. Station
PAGE 5 OF 1 7
o External Metal Loss Indication Density vs. Station
o Internal Metal Loss Clock Position vs. Station
o Internal Metal Loss Depth vs, Station
o Internal Metal Loss Indication Density vs. Station
o Metal Loss Class Breakout
o Metal Loss Decile Counts
o Metal Loss Depth vs. Station (combined)
o Metal Loss ERF Sentencing Plot
o . Metal Loss Safe Pressure vs. Station
o Velocity vs. Station
Hard Copy Reports - One (1) included
Digital Copy Reports — One (1) CD or DVD included
• Enduro PigProg 2 Software — One (1) copy included on digital copy of report
Estimated Report Delivery Times
• Executive Summary Report
o Fourteen (14) business days upon reception of data in Tulsa, OK
• Preliminary Final Report
o Sixty (60) business days upon reception of data in Tulsa, OK
• Final Report
o Upon Customer approval of the Preliminary Final Report
** During analysis, if an immediate condition is discovered by the analyst, the Customer will be
notified then an immediate Repair Report will be generated and issued. **
PAGE 6 OF 1 1
OPTIONAL / CONTINGENCY SERVICES
Equipment and Personnel Standby Charges
• MFL DfLTm Combo tool: $ 5,000.00 per day / tool
• Caliper DdLTM tool: $ 2,500.00 per day / tool
• DdL rm / DfLTM technician: $ 1,500.00 per day I technician
Additional Metal Loss Analysis
• Identifying Metal Loss _> 10% and <_ 19%: $ 5,000.00 plus $ 300.00 per mile
Additional Deformation Analysis
Identifying Deformations >_ 0.50% and 5 1.99%: $ 3,500.00 plus $ 175.00 per mile
Customer Alignment Sheet Data Incorporated Into Raw Data
• Adding Customer station numbers tofeaturesand/or name nomenclatures
• $ 5,000.00 plus $ 100.00 per mile
Customized Spreadsheet Format for Final Report (initial development)
• $ 10,000.00
Changes to an Existing Customized Spreadsheet Format for Final Report
• $ 5,000.00
Customized Spreadsheet Format Data Population, per report (generation of report)
• $ 2,500.00
Run Comparison Report
• Alignment of weld joints from one survey to another
• Spreadsheet will be generated showing the difference in depth prediction
• Report will be provided within thirty (30) business days after issue of the final report
• $ 2,500.00 plus $ 500.00 per mile
Puddle Weld Detection
• Puddle welds are identifiable by comparing the RESIDUAL field to the MFL field; a heat
affected zone signature on the RESIDUAL field aligning with an added metal signature on
the MFL field. The two (2) signatures are typically common with hard spot indications
and puddle weld areas.
• Issuance of final report will be delayed by up to 30 business days
• $ 7,600.00 plus $ 1,000.00 per mile
Pipe Strain Analysis
• The processed inertial data will be reviewed for areas of relatively high bending strain or
curvature associated with potential permanent ground movement
o Ground movement induced curvature signatures/profiles will tend to develop over
relatively longer lengths (e.g., more than one joint length)
• Pipe strain will be reported down to 0.50% strain when related to pipe movement
determined to be of an approximate 100D radius bend.
• Customer will be required to provide a set of up to date alignment sheets
• Pipe strain analysis requires two (2) surveys to be conducted:
0 15` survey will be utilized to establish a baseline of the pipeline
0 2"d survey (6 months to a year later or longer) will be utilized to perform the pipe
strain analysis.
• $ 7,500.00 plus $ 1,000.00 per mile
PAGE 7 OF 1 1
AGM Site Documentation
• GPS / Tracking Technician Mob/Demob: $ 3,000.00 per technician (2-required)
• GPS / Tracking Technician Daily Rater $ 1,250.00 per day / technician
• AGM Site Documentation Report: $ 2,000.00 plus $ 200.00 per site
o One (1) Hard Copy and one (1) Digital Copy (CD or DVD)
Tracking Services
• Supplying technician(s) to assist with tracking cleaning and/or ILI tools
• Number of required technician(s) is dependent
o Pipeline length
o Flow rate
o Terrain
• GPS / Tracking Technician Mob/Demob: $ 3,000.00 per technician
o Maximum of twelve (12) hours per day
• GPS / Tracking Technician Daily Rate: $ 1,250.00 per day / technician
o Includes 4x4 truck and subsistence
• Vehicles required other than 4x4 truck will be provided either by Customer or through
Enduro at cost+ 15%
o Includes but not limited to ATVs, swamp boats, etc.
IMU / GPS Services
• An Enduro two (2) man crew will collect above ground GPS data at pre -determined
locations
o Typically within two (2) weeks upon completion
• The collected GPS data will be incorporated with the raw data to produce X,Y,Z
coordinates for all logged events.
• Customer will be responsible for providing landowner relations assistance
Customer will be responsible for providing an easily accessible R.O.W.
• GPS / Tracking Technician: $ 3,000.00 ea. (2-req'd)
• .GPS / Technician Daily Rate: $ 2,000.00 per day (typically complete 6 miles per day)
• IMU / GPS Reporting: $ 250.00 per mile ($ 2,500.00 minimum charge)
Additional Copies of Report
• Hard Copy (one included): $ 750.00 ea.
• Digital Copy, CD or DVD (one included): $ 750.00 ea.
Other Consulting / Data Support Services (anything not previously listed)
• $ 500.00 per hour
• Two (2) hour minimum
PAGE 8 OF 1 1
TERMS AND CONDITIONS
1. Metal Loss Anomalies: Sized and located identifying metal loss of/or greater than 20% (of/or
greater than 10.% available upon request).
Geometry Anomalies: Sized and located identifying deformations of/or greater than 2% of pipe
O.D (of/or greater than 0.50% of pipe O.D. available upon request).
Bend Survey: Includes an analysis of bend data; reporting all factory type bends — such as .
1.5D, 3D, 5D, up to 12D — and "field" bends at major direction change locations or when needed
to assist in excavation of anomalies.
These conditions will be sized and located for excavation, repair or documentation requirements.
Such analysis survey data will be accurate provided the conditions set forth in Items 2 through 5
are met.
2. Alignment Maps: Customer will provide alignment maps of the pipeline indicating valves, wall
thicknesses and other known points with updated station numbers and an Enduro or comparable
pre -survey data form.
t Alignment maps and/or weld records are required to complete a "field" report while on -
site.
3. Internal Debris: It is difficult to determine debris from structural damage, for this reason; the
pipeline should be cleaned with an adequate number of cleaning runs prior to the Caliper DdLTM
Survey.
4. Customer will provide adequate equipment and personnelrequired to safely launch, run and
receive the Enduro equipment. Customer will, at all times, be responsible for maintaining a safe,
adequate flow media.
5. Customer will provide adequate work space near the project site where Enduro personnel may
prepare equipment. Customer will provide a "climate controlled" work space where preliminary
field data may be reviewed and confirmed. Enduro personnel will require access to this area at
all times.
6. Customer will clean any debris, contaminates and/or hazardous material from Enduro's
equipment upon extraction from the pipeline and will be responsible of its disposal.
7. Personnel Transportation:
Av Round trip transportation — from Tulsa, OK — is included in the mobilization charges.
8. Equipment transportation:
AV Round trip transportation — from Tulsa, OK — is included in the mobilization charges.
9. Subsistence: "Food and housing" is included in the base charge and/or daily rate.
Customer will provide "food and housing" for Enduro's personnel for projects that require
working off -shore or in "work camps".
10. Prices are net, any taxes are the responsibility of the Customer.
PAGE 9 OF 1 1
11
Mutual Indemnification:
=1 Customer shall indemnify and save harmless Enduro from and against all actions,
proceedings, claims, demands, losses, costs, damages and expenses of whatever nature
which may be brought against or suffered by Enduro and which Enduro may incur,
sustain or pay arising out of or in connection with the negligence or willful misconduct of
Customer incidental to the performance of the work or this agreement, except to the
extent that such losses or damages result from the negligence or willful misconduct of
Enduro.
r Enduro shall indemnify and save harmless Customer from and against all actions,
proceedings, claims, demands, losses, costs, damages and expenses of whatever nature
which may be brought against or suffered by Customer and which the Customer may
incur, sustain or pay arising out of or in ,connection with the negligence or willful
misconduct of Enduro incidental to the performance of the work or this agreement, except
to the extent that such losses or damages result from the negligence or willful misconduct
of the Customer.
12. Damage or Loss of Equipment (maximum charge) to be billed to Customer at cost.
MFL DfLTM Combo Survey Tool $ 250,000.00 USD ea.
Caliper DdLTM Survey Tool $ 55,000.00USD ea.
Trimble GPS Unit $ 15,00&00 USD ea.
4 Geophone $ 1,500.00 USD ea.
Dual Geophone $ 2,500.00 USD ea.
Receiver $ 4,500.00 USD ea.
_' Transmitter $ 5,000.00 USD ea.
4 BenchMarkTM / AGM Equipment $ 2,500.00 USD ea.
Aw Tool Box $ 1,500.00 USD ea.
13. Release for Recall: Should the Customer desire to use, the following stipulations shall apply:
Should the Customer desire to retain the equipment at the job site, the equipment
standby rate will apply.
Should the Customer release the personnel and equipment, the mobilization charge plus
personnel standby charges on days of travel will apply to each new mobilization.
14. Cancellation: Should the Customer cancel any requested Enduro services within seven (7) days
of the commenced schedule date, Customer will be charged for expenses actually and properly
incurred by Enduro.
Cancellation occurs before mobilization: 50% of equipment mobilization charges
`- Cancellation occurs after mobilization: 100% of equipment/personnel mobilization
charges
15. Safety or Area Training: Customer will be charged a daily rate for personnel expenses incurred
in the event of safety or area training required in performing any Enduro service.
PAGE 1 0 OF 1 1
16. Rerun Charges:
It Reruns due to pipeline conditions such as improper running procedures and/or dirty
pipeline will be done at a rate of 50% of the base charge plus the applicable daily rate
charges.
Reruns requested by the Customer for confirmation of the pipeline conditions will be done
at a rate of 50% of the base charge plus the applicable daily rate.
Reruns due to Enduro equipment failure or personnel error will carry no additional
charges, except in cases of required demobilization and remobilization due to pipeline
operations.
Enduro accepts no responsibility for delays, damages, downtime, reruns or other losses
or claims incident to the use of Enduro equipment and/or services.
17. AGM - BenchMarkTM: Once the AGM / BenchMarkTM is proven to be in operational condition
during the survey, any missed AGM / BenchMarkTM will be considered to be due to pipeline
operation and topical geographical conditions. The Customer will supply AGM / BenchMarkT11
field personnel to be supervised by the Enduro field technician.
is. Standby: On non -work days or other days not covered with the allowed days on -site, standby
charges will apply to the equipment and field personnel.
A} Equipment standby charges will commence on the stated "projected work
commencement date" provided at .the time of the equipment mobilization request.
Personnel standby charges will apply from the last provided requested date of arrival; this
date may not be changed once the equipment and personnel have departed Tulsa, OK.
19. Mobilization Charges: Included build-up, tear down and freight charges to and from the stated
job location, unless otherwise agreed upon.
Notification of equipment mobilization request is required in writing, fax or by email along with the
"project work commencement date". Due to the equipment shipping time requirements, this
request should allow two (2) weeks build-up and shipping time for the equipment.
Notification of personnel mobilization may float or change frequently prior to the actual work
commencement; one (1) week notice is suggested prior to personnel mobilization.
20. Payment Terms: Net 30 days on receipt of invoice. Any invoice unpaid after 30 days will be
subject to a month finance charge of 1 %% (Annual Percentage Rate 18%).
Projects spanning more than one (1) calendar month will be billed monthly to the extent of the
work performed.
This quotation is issued based upon information provided by the Customer indicating the final destination of the goods
and service conditions. Deviation from the destination, pipeline conditions stated or from the job hereby quote must be
confirmed in writing by the Customer prior to start of the work. Incorrect or incomplete information provided by the
Customer or deviations from the quote job may require Enduro to make reruns or incur other costs to complete the
project. All such incurred costs and rerun charges will be charged to the Customer.
QUOTATION VALID TO: October 31, 2012
Please confirm after this date.
PAGE 1 1 OF 1 1
EXHIBIT B
FEES
Contractor shall be paid $64,490.00 to perform the Services described in Exhibit A, page 4 of
11, "Itemized Cost."
Contractor shall perform these services in accordance with Contractor's proposal dated August
20, 2012, a copy of which is attached hereto and incorporated by reference as attached.
Certain language in Contractor's proposal pertaining to indemnification and payment terms has
been struck out. The language pertaining to the same within the Agreement shall prevail.
Services beyond the services in "Itemized Cost" shall require a Change Order submitted to City
and authorized in writing by the City.
Contractor shall invoice City within thirty (30) days after performing the work for Services
provided under this Agreement.
Invoices shall include the period for which the 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, if any, 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 invoice. Any amounts in
dispute shall be withheld until resolution.
14
EXHIBIT C
CHANGE ORDER
A change order may be approved by one of the following:
Carlos Fandino, Jr.
Director of Power and Light
Email: Cfandino(a)ci.vernon.ca.us
Ali Nour
Engineering Manager
Email: anour(d)-ci.vernon.ca.us
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 $1.1.55 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 personalnecessity at the employee's request, and an additional ten days a
year of uncompensated time for sick leave.
No Retaliation:
A prohibition on employer retaliation exists 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.
16
OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
November 14, 2012
Enduro Pipeline Services, Inc.
ATTN: John Winzenburg, Sr. Project Estimator
5002 S 451h West Ave
Tulsa, CA 74107
Re: Resolution No. 2012-219 - A Resolution of the City Council of the City of Vernon
Accepting the Bid of Enduro Pipeline Services, Inc., and Approving and Authorizing the
Execution of a Services Agreement By and Between the City of Vernon and Enduro Pipeline
Services, Inc., for the Natural Gas Transmission Pipeline In Line Inspection
Dear Mr. Weizenburg:
Transmitted herewith is an original fully executed agreement as referenced above, approved by
the City Council of the City of Vernon on November 6, 2012 through Resolution No. 2012-219.
If you have any questions regarding this matter, please contact me at (323) 583-8811 Ext. 286.
Very truly yours,
i�
Lff
na Ba cia
Deputy City Clerk
AB/yb
Enclosure
E,Xclusive6i Industrial
nECIEIVE®
OCT 3 1 2012
CITY CLERK'S OFFICE
STAFF REPORT
LIGHT & POWER
DATE: October 29, 2012
TO: Honorable Mayor and City Council
FROM: Carlos Fandino, Director of Light & Power O� 10[3001-
ce c, (
IIJ1)�12
RECEIVED
OCT 3 0 2012
CITY ADMINISTRATION
RE: Natural Gas Transmission Pipeline Integrity Management Compliance -
RFP Results for Natural Gas Transmission Pipeline In -Line Inspection
Assessment -- Bid Award
The bids for Natural Gas Transmission Pipeline for In -Line Inspection Assessment were received
and opened on August 22, 2012. The results of the three bids received are as follow:
1. Enduro Pipeline Services, Inc. $64,490.00
2. T.D. Williamson, Inc. , $74,719.00
3.• Baker Hughes Process & Pipeline Services $87,000.00
Enduro Pipeline Services, Inc. has delivered the lowest and most comprehensive bid covering all
items identified in the bid package. Staff has reviewed the contractor's work experience and has
determined that Enduro Pipeline Services, Inc. can meet the City's needs and requirements.
BACKGROUND
Department of Transportation (DOT). requires that all natural gas transmission pipeline operators
to perform a pipeline integrity assessment every seven years. City of Vernon is a transmission
pipeline operator and must meet this federal requirement. Pursuant to Resolution No. 2012-137,
Contract GD-0013 was awarded to A.M. Ortega to install a launcher/receiver in ends of the City
owned transmission. pipeline. Following the completion of this project, a qualified contractor will
have to place in -line instruments inside the pipeline to assess the pipeline conditions. On July
17, 2012, City Resolution No. 2012-138, authorized the issuance of issue an RFP to select a
contractor to perform the pipeline assessment. This regulatory requirement will be met once this
pipeline assessment is completed.
RECOMMENDATION
It is recommended that the project be awarded to Enduro Pipeline Services, Inc., in the total bid
amount of $64,490.00 and a'resolution awarding the contract be adopted and the Mayor and City
Clerk be authorized to execute the contract documents at the November 6, 2012 City Council meeting.
The City Attorney has reviewed the agreement and has approved it as to form.
Funds for the project will come from Account No. 056.9000000.
CF/arn
Attachments