HomeMy WebLinkAbout12-09-13 EO&WR Committee PacketOTAY WATER DISTRICT
ENGINEERING, OPERATIONS & WATER RESOURCES COMMITTEE MEETING
and
SPECIAL MEETING OF THE BOARD OF DIRECTORS
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
Board Room
MONDAY
December 9, 2013
12:00 P.M.
This is a District Committee meeting. This meeting is being posted as a special meeting
in order to comply with the Brown Act (Government Code Section §54954.2) in the event that
a quorum of the Board is present. Items will be deliberated, however, no formal board actions
will be taken at this meeting. The committee makes recommendations
to the full board for its consideration and formal action.
AGENDA
1. ROLL CALL
2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU-
RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
DISCUSSION ITEMS
3. APPROVE A PROFESSIONAL SERVICES CONTRACT WITH ATKINS NORTH
AMERICA, INC. FOR THE 2015 WATER FACILITIES MASTER PLAN AND PRO-
GRAM ENVIRONMENTAL IMPACT REPORT UPDATES IN AN AMOUNT NOT-TO-
EXCEED $434,731 (KENNEDY) [5 minutes]
4. APPROVE A CONSTRUCTION CONTRACT WITH ADVANCED INDUSTRIAL SER-
VICES, INC. FOR THE 624-2 RESERVOIR INTERIOR/EXTERIOR COATING AND
UPGRADES PROJECT IN AN AMOUNT NOT-TO-EXCEED $1,199,000 (CAMERON)
[5 minutes]
5. APPROVE A CONSTRUCTION CONTRACT WITH COFFMAN SPECIALTIES, INC.
FOR THE POTABLE WATER UTILITY RELOCATIONS ASSOCIATED WITH THE
CALTRANS SR-11-SEQUENCE 1 PROJECT IN AN AMOUNT NOT-TO-EXCEED
$992,380 (MARCHIORO) [5 minutes]
6. APPROVE AN AGREEMENT BETWEEN THE SAN DIEGO COUNTY SANITATION
DISTRICT (COUNTY) AND THE DISTRICT FOR REIMBURSEMENT TO THE
COUNTY FOR THE DESIGN AND CONSTRUCTION COSTS ASSOCIATED WITH
THE RANCHO SAN DIEGO PUMP STATION REHABILITATION PROJECT; AND
2
APPROVE AN INCREASE IN CIP BUDGET S2027 IN THE AMOUNT OF $600,000,
INCREASING THE OVERALL CIP BUDGET FROM $2,900,000 TO $3,500,000
(KENNEDY) [5 minutes]
7. SAN DIEGO COUNTY WATER AUTHORITY UPDATE (WATTON) [10 minutes]
8. ADJOURNMENT
BOARD MEMBERS ATTENDING:
David Gonzalez, Chair
Gary Croucher
All items appearing on this agenda, whether or not expressly listed for action, may be delib-
erated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the Dis-
trict’s website at www.otaywater.gov. Written changes to any items to be considered at the
open meeting, or to any attachments, will be posted on the District’s website. Copies of the
Agenda and all attachments are also available through the District Secretary by contacting
her at (619) 670-2280.
If you have any disability that would require accommodation in order to enable you to partici-
pate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to
the meeting.
Certification of Posting
I certify that on December 6, 2013 I posted a copy of the foregoing agenda near the
regular meeting place of the Board of Directors of Otay Water District, said time being at least
24 hours in advance of the meeting of the Board of Directors (Government Code Section
§54954.2).
Executed at Spring Valley, California on December 6, 2013.
/s/ Susan Cruz, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: January 7, 2014
SUBMITTED BY:
Bob Kennedy
Engineering Manager
PROJECT: P1210-
001101
DIV. NO. ALL
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Award of a Professional Engineering Services Contract for the
2015 Water Facilities Master Plan and Program Environmental
Impact Report Updates to Atkins North America, Inc.
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
award a professional services contract to Atkins North America, Inc.
and to authorize the General Manager to execute an agreement with
Atkins North America, Inc. for the 2015 Water Facilities Master Plan
and Program Environmental Impact Report Updates in an amount not-to-
exceed $434,731.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to enter into a
professional engineering services contract with Atkins North America,
Inc. for the 2015 Water Facilities Master Plan and Program
Environmental Impact Report Updates in an amount not-to-exceed
$434,731.
2
ANALYSIS:
The District requires the services of a planning and environmental
firm (Consultant) to provide professional engineering and
environmental services as part of the District’s Water Facilities
Master Plan (WFMP) 2015 and Program EIR (PEIR) Updates (Capital
Improvement Plan Number P1210). The previous Water Resources Master
Plan Update was approved by the District’s Board of Directors on
February 3, 2010 and combined all previously existing master plans
and facility plans into one system wide plan outlining the potable
water and recycled water systems required to serve our customers at
build-out conditions. Minor changes were made in November 2010 and
May 2013 to reflect changes in land use and the demands for the City
of San Diego Otay Mesa Community Plan Update and changes to the City
of Chula Vista Otay Ranch development.
The purpose of the 2015 WFMP and PEIR Updates is to identify and
provide planning and design data for future potable and recycled
water capital improvement projects. Planning and design data must
include, but not be limited to, population projections, analysis of
historical data, land use categorization, hydraulic model
construction, facilities sizing criteria and associated probable cost
estimates. Facilities will include supply source, pump stations,
storage reservoirs, transmission mains and distribution piping to
meet the projected potable and recycled water market demands of
existing and future customers within the jurisdiction and the
identified area of influence of the District. The 2015 WFMP and PEIR
Updates must develop a phased approach to outline the general Capital
Improvement Program (CIP) projects necessary to meet the projected
customer demands at 5-year intervals to the year 2050. A detailed
CIP is required for each year through 2020.
In addition, the 2015 WFMP Update requires updating the previous
Program Environmental Impact Report (PEIR) to address environmental
impacts for each future CIP project. Pursuant to California
Environmental Quality Act (CEQA) Guidelines, the District must
prepare a PEIR to obtain approval and formal adoption of the WFMP.
The PEIR is an informational document that provides an overview of
the projects identified in the WFMP, and their impacts in terms of
air quality, biological resources, cultural resources, geology and
soils, greenhouse gas emissions, hazards and hazardous materials,
hydrology and water quality, landform alteration and visual
aesthetics, land use and planning, noise and any other impacts deemed
necessary for study.
In accordance with the Board of Directors Policy Number 21, the
District initiated the consultant selection process on September 9,
3
2013, by placing an advertisement in the San Diego Daily Transcript,
and posting the Project on the District’s website for Professional
Engineering Services. The advertisements attracted Letters of
Interest and Statements of Qualifications from ten (10) consulting
firms. A Pre-Proposal Meeting was held on October 1, 2013. Seventeen
(17) people representing eight (8) prime consulting firms attended
the meeting.
On October 14, 2013, proposals were received from the following five
(5) consulting firms:
1. Dudek
2. Carollo Engineers, Inc.
3. Atkins North America, Inc.
4. Black & Veatch Corporation
5. HDR Engineering, Inc.
Among the prime engineering firms that submitted letters of interest,
but did not propose, were CDM/Smith, Kennedy Jenks and Brown &
Caldwell.
After the proposals were evaluated and ranked by a five-member review
panel consisting of District Engineering, IT, and Operations staff,
it was determined that three (3) proposals ranked sufficiently close
to warrant being invited to make an oral presentation and respond to
questions from the panel. After conducting the interviews on
November 13, 2013, the panel completed the consultant ranking process
and concluded that Atkins North America, Inc. had the best approach
to the Project and provided the best overall value to the District.
A summary of the complete evaluation is shown in Attachment B.
Scope and fee negotiations with Atkins North America, Inc. concluded
on November 18, 2013 which resulted in acceptance of their proposed
fee reduction from $479,941 to $434,731.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
As a part of the Fiscal Year (FY) 2014 operating budget development
process, the total estimated budget for the WFMP Project was
projected by staff to be $400,000 with a $200,000 expenditure
anticipated to occur in both FY 2014 and FY 2015. The bid for the
work is $434,731. Staff expects a $200,000 expenditure for FY 2014
and $250,000 for 2015. Staff will modify the FY 2015 Operating
Budget to accommodate this higher amount.
4
Based on a review of the budget, staff has determined that the
approved FY 2014 and planned FY 2015 combined budgets are anticipated
to be sufficient to support the WFMP Project.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
high value water and wastewater services to the customers of the Otay
Water District in a professional, effective, and efficient manner”
and the General Manager’s Vision, “A District that is at the
forefront in innovations to provide water services at affordable
rates, with a reputation for outstanding customer service.”
LEGAL IMPACT:
None.
BK:jf
P:\WORKING\CIP 00210 WMP & PEIR\Water Resources Master Plan\2015 WFMP Update\Agreement\BD 01-07-14,
Staff Report, Award of an Engineering Services Contract to Atkins North America, (KS-BK).docx
Attachments: Attachment A – Committee Action
Attachment B – Summary of Proposal Rankings
ATTACHMENT A
SUBJECT/PROJECT:
P1210-001101
Award of a Professional Engineering Services Contract for
Production of the 2015 Water Facilities Master Plan and
Program Environmental Impact Report Updates to Atkins North
America, Inc.
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee)
reviewed this item at a meeting held on December 9, 2013. The
Committee supported Staff’s recommendation.
NOTE:
The “Committee Action” is written in anticipation of the Committee
moving the item forward for Board approval. This report will be sent
to the Board as a Committee approved item, or modified to reflect any
discussion or changes as directed from the Committee prior to
presentation to the full Board.
Qualifications of
Team
Responsiveness
and Project
Understanding
Technical and
Management
Approach
INDIVIDUAL
SUBTOTAL -
WRITTEN
AVERAGE
SUBTOTAL -
WRITTEN
Proposed Fee*
Consultant's
Commitment to
DBE
TOTAL -
WRITTEN
Additional
Creativity and
Insight
Strength of
Project Manager
Presentation and
Communication
Skills
Responses to
Questions
INDIVIDUAL
TOTAL - ORAL
AVERAGE
TOTAL ORAL
TOTAL
SCORE
30 25 30 85 85 15 Y/N 100 15 15 10 10 50 50 150
Poor/Good/
Excellent
Dan Martin 26 22 27 75 10 11 8 6 35
Bob Kennedy 27 23 27 77 10 11 7 6 34
Gary Stalker 26 22 26 74 10 9 6 6 31
Lisa Coburn-Boyd 27 23 27 77 11 10 7 6 34
Ming Zhao 28 23 26 77 11 10 7 6 34
Dan Martin 23 18 19 60
Bob Kennedy 23 20 23 66
Gary Stalker 19 20 20 59
Lisa Coburn-Boyd 23 18 24 65
Ming Zhao 20 20 20 60
Dan Martin 22 18 20 60
Bob Kennedy 22 19 22 63
Gary Stalker 20 21 24 65
Lisa Coburn-Boyd 22 20 23 65
Ming Zhao 22 20 22 64
Dan Martin 24 23 23 70 11 12 9 6 38
Bob Kennedy 23 20 22 65 11 11 7 6 35
Gary Stalker 24 20 22 66 10 10 7 6 33
Lisa Coburn-Boyd 27 22 27 76 11 11 7 635
Ming Zhao 26 22 24 72 14 11 10 7 42
Dan Martin 27 21 25 73 14 15 9 8 46
Bob Kennedy 27 22 26 75 14 14 8 8 44
Gary Stalker 26 21 25 72 13 14 9 8 44
Lisa Coburn-Boyd 28 23 28 79 14 14 8 8 44
Ming Zhao 28 22 25 75 14 14 9 8 45
Firm HDR Carollo Dudek Black & Veatch Atkins *Note: Review Panel does not see or consider proposed fee when scoring other categories. The proposed fee is scored by the PM, who is not on Review Panel.
Fee $353,000 $655,468 $649,970 $593,350 $479,941
Score 15 1 1 4 9
WRITTEN ORAL
REFERENCES
MAXIMUM POINTS
HDR 76 15 Y 91 34
Carollo 62 1 Y 63
Dudek 63 1 Y 64
125
Black & Veatch 70 4 Y 74 37
Y84 45 129 Excellent
Summary of Proposal Rankings for 2015 Water Facilities Master Plan Update and PEIR
ATTACHMENT B
NOT INTERVIEWED
NOT INTERVIEWED
RATES SCORING CHART
111
Atkins 75 9
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: January 7, 2014
SUBMITTED BY:
Kevin Cameron
Assistant Civil Engineer II
Bob Kennedy
Engineering Manager
PROJECT: P2493-001103
DIV. NO.: 4
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Award of a Construction Contract to Advanced Industrial
Services, Inc. for the 624-2 Reservoir Interior/Exterior
Coating & Upgrades Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
award a construction contract to Advanced Industrial Services, Inc.
(AIS) and to authorize the General Manager to execute an agreement
with AIS for the 624-2 Reservoir Interior/Exterior Coating & Upgrades
Project in an amount-not-to exceed $1,199,000 (see Exhibit A for
Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to enter into a
construction contract with AIS for the 624-2 Reservoir Interior/
Exterior Coating & Upgrades Project in an amount-not-to exceed
$1,199,000.
2
ANALYSIS:
In June 2013, the District’s corrosion consultant, V&A Consulting
Engineers, completed a Corrosion Control Program (CCP) that addressed
the installation, maintenance, and monitoring of corrosion protection
systems for the District’s steel reservoirs and buried metallic
piping. The CCP included a reservoir maintenance schedule that
showed the 624-2 Reservoir is due to be recoated on both the interior
and exterior surfaces. In addition to replacing the coatings of the
reservoir, structural upgrades will be added to comply with the
current American Water Works Association (AWWA) and the Occupational
Safety and Health Administration standards for both Federal (OSHA)
and State (Cal-OSHA) levels.
An external inspection of the reservoir was performed in 2008 by
Utility Service Company, Inc. as part of a multiple tank
investigation. An internal inspection was completed in May 2013 by
Coating Specialists and Inspection Services, Inc. (CSI Services).
The recommended coating and structural upgrades, developed with input
from engineering and operations staff, are as follows: replace the
twenty (20) year old coating on the interior and exterior surfaces,
replace the existing level indicators, install a new fall prevention
device on the interior ladder, modify anode access ports, replace all
anodes, replace the roof vents, install new safety cable lanyards,
and add miscellaneous tank penetrations for chlorination and
sampling. These upgrades will ensure compliance with AWWA, OSHA,
Cal-OSHA requirements as well as upgrade antiquated equipment on the
tank.
This Project was previously bid in August 2013. At the bid opening,
five (5) bids were received and opened, however, forty-five (45)
minutes later, FedEx delivered three (3) additional bids. Per
District policy, the three (3) bids were returned unopened. Due to
the uncertainty as to the value of the unopened bids, Staff
recommended to reject all bids, and at the October 2, 2013 Board
Meeting, the Board rejected all bids.
The Project was re-advertised on October 7, 2013 on the District’s
website and several other publications including the San Diego Daily
Transcript. One (1) addendum was sent out to all bidders and plan
houses to address questions and clarifications to the contract
documents during the bidding period. Bids were publicly opened on
October 29, 2013, with the following results:
3
CONTRACTOR TOTAL BID AMOUNT
1 Advanced Industrial Services, Inc. (AIS) $1,199,000.00
2 Paso Robles Tank, Inc. $1,404,000.00
3 ABHE & SVOBODA, Inc. $1,424,875.00
4 Western Industrial Inc. $1,468,400.04
5 KM Industrial, Inc. $1,861,942.00
6 Blastco, Inc. $2,035,600.00
The Engineer’s Estimate is $1,413,500.
AIS was one of the three contractors whose bid was received late and
unopened. Rebidding the project represented a savings to the
District, as AIS’ current bid is $82,603 less than the previous low
bid received in August 2013.
Staff reviewed the bids submitted for conformance with the contract
requirements and determined that AIS was the lowest responsive and
responsible bidder. AIS holds a Class C-33, Painting and Decorating,
Contractor’s License, which meets the contract document’s
requirements, and is valid through January 31, 2014. AIS also holds
a current QP-1 certification from Society for Protective Coatings,
which was also a requirement. The reference checks indicated an
excellent performance record on similar projects. An internet
background search of the company was performed and revealed no
outstanding issues with this company. AIS previously worked with the
District on two previous projects and completed the work on both
within budget.
Staff has verified that the bid bond provided by AIS is valid. Staff
will also verify that AIS’ Performance Bond and Labor and Materials
Bond are valid prior to execution of the contract.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP P2493, as approved in the FY 2014 budget, is
$1,950,000. Total expenditures, plus outstanding commitments and
forecast, are $1,504,585.
Based on a review of the financial budget, the Project Manager
anticipates that the budget is sufficient to support the Project.
See Attachment B for the budget detail for CIP P2493.
Finance has determined that 100% of the funding is available from the
Replacement Fund for CIP P2493.
4
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
high value water and wastewater services to the customers of the Otay
Water District in a professional, effective, and efficient manner”
and the General Manager’s Vision, “A District that is at the
forefront in innovations to provide water services at affordable
rates, with a reputation for outstanding customer service.”
LEGAL IMPACT:
None.
KC/BK:jf
P:\WORKING\CIP P2493 & P2535 624-2 & 458-2 Reservoir Coating\Staff Reports\Construction Contractor\Re-
Bid\01-07-14, Staff Report, 624-2 Reservoir Coating(KC-BK).docx
Attachments: Attachment A – Committee Action
Attachment B – Budget Detail
Exhibit A – Location Map
ATTACHMENT A
SUBJECT/PROJECT:
P2493-001103
Award of a Construction Contract to Advanced Industrial
Services, Inc. for the 624-2 Reservoir Interior/Exterior
Coating & Upgrades Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on December 9, 2013.
The Committee supported Staff's recommendation.
NOTE:
The “Committee Action” is written in anticipation of the Committee
moving the item forward for Board approval. This report will be sent
to the Board as a Committee approved item, or modified to reflect any
discussion or changes as directed from the Committee prior to
presentation to the full Board.
ATTACHMENT B – Budget Detail
SUBJECT/PROJECT:
P2493-001103
Award of a Construction Contract to Advanced Industrial
Services, Inc. for the 624-2 Reservoir Interior/Exterior
Coating & Upgrades Project
Date Updated: 10/30/2013
Budget
1,950,000
Planning
Standard Salaries 1,127 1,127 - 1,127
Total Planning 1,127 1,127 - 1,127
Design 001102
Standard Salaries 44,778 34,278 10,500 44,778
Professional Legal Fees 239 239 - 239 STUTZ ARTIANO SHINOFF
Consultant Contracts 2,715 2,715 - 2,715 CSI SERVICES INC
Service Contracts 1,520 1,520 - 1,520 MAYER
43 43 - 43 SAN DIEGO DAILY TRANSCRIPT
Total Design 49,295 38,795 10,500 49,295
Construction
Standard Salaries 78,502 3,502 75,000 78,502
Construcion Contract 1,199,000 - 1,199,000 1,199,000 ADVANCED INDUSTRIAL SERVICES
Service Contracts 47 47 - 47 SAN DIEGO DAILY TRANSCRIPT
75,160 - 75,160 75,160 HARPER & ASSOCIATES
25,200 - 25,200 25,200 CONSTRUCTION MANAGEMENT
Equipment Rental 725 725 - 725 HORIZON CRANE SERVICE LLC
Professional Legal Fees 554 554 - 554 STUTZ ARTIANO SHINOFF
Regulatory Agency Fees 25 25 - 25 PETTY CASH CUSTODIAN
Project Closeout 15,000 - 15,000 15,000 CLOSEOUT
Project Contingency 59,950 - 59,950 59,950 5% CONTINGENCY
Total Construction 1,454,163 4,853 1,449,310 1,454,163
Grand Total 1,504,585 44,775 1,459,810 1,504,585
Vendor/Comments
Otay Water District
P2493-624-2 Reservoir Interior/Exterior Coating & Upgrades
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
Chateau Ct Chateau Ct G o t h a m S t
Lakeshore Dr
Lakeridge Cir
Lehigh Ave
B
ro
o
k
sto
n
e
R
d
Crosscreek Rd
Lafayette Pl
M a r q u e t t e R d
Woodspring Dr
Creekwood Way
Kent S t
Clearbrook Dr
Wildbrook Pl
Coldbrook Ct
Willowbrook Ct
130
VICINITY MAP
PROJECT SITE
NTSDIV 5
DIV 1
DIV 2
DIV 4
DIV 3
P:\WORKING\CIP P2493 & P2535 624-2 & 458-2 Reservoir Coating\Graphics\Exhibits-Figures\624-2 Location.mxd
OTAY WATER DISTRICT624-2 Reservoir Interior/ExteriorCoating and Upgrades
EXHIBIT A CIP P2493
624-2 Steel8.0 MG Reservoir
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: January 7, 2014
SUBMITTED BY:
Jeff Marchioro
Senior Civil Engineer
Bob Kennedy
Engineering Manager
PROJECT: P2453-
002102
DIV. NO. 2
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Award of a Construction Contract to Coffman Specialties, Inc.
for SR-11 Potable Water Utility Relocations – Sequence 1
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
award a construction contract to Coffman Specialties, Inc. (Coffman)
for the potable water utility relocations associated with the
Caltrans SR-11-Sequence 1 Project in an amount not-to-exceed $992,380
(see Exhibits A and B for Project location and detail).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to enter into a
construction contract with Coffman in an amount not-to-exceed
$992,380 for potable water utility relocations associated with the
Caltrans SR-11-Sequence 1 Project.
2
ANALYSIS:
Caltrans is currently in the process of completing land acquisition
and design for the SR-11 freeway in Otay Mesa. The first phase of
the freeway (Sequence 1) starts at the SR-905 freeway and ends at
Enrico Fermi Drive. Part of this process is to relocate existing
utilities that conflict with this work. The District’s existing
pipelines in Sanyo Avenue and utility easements within the future SR-
11 right-of-way will need to be relocated to accommodate the new
freeway.
The District entered into a Utility Agreement with Caltrans on
July 23, 2013 in follow up to a staff report approved by the Board on
July 3, 2013. The Utility Agreement included a $961,521
reimbursement to the District. The District has prior and superior
rights at three (3) separate crossings including 760 linear-feet of
existing 10-inch ACP potable water distribution main currently
located within a District permanent easement on private property
between Sanyo Avenue and Dornoch Court, 355 linear-feet of existing
18-inch steel cylinder rod wrapped (SCRW) potable water transmission
main located within a District owned utility easement on private
property east of Dornoch Court, and 40 linear-feet of existing 12-
inch ACP potable water distribution main located in Sanyo Avenue.
The District’s relocations will be constructed through a construction
contract administered by the District separately from Caltrans
freeway construction project. At the request of Caltrans, the
District’s relocations were bid as six (6) separate “work windows” to
provide flexibility to Caltrans’ contractor. The work windows
essentially created separate projects under one contract requiring
separate mobilization/demobilization for each work window. In other
words, District’s contractor would be “on call” to construct any work
window in any order within a relatively long contract time (900
calendar days) coinciding with Caltrans’ construction contract.
The District’s As-Needed Engineering Design Consultant (Atkins)
prepared the bid documents. Mayer Reprographics (Mayer) distributed
the bid documents electronically through Mayer’s online planroom.
Staff contacted several contractors prior to the bid process to
encourage them to submit a bid including Coffman since Coffman
received Caltrans construction contract award. Staff also reached
out to contractors that have successfully completed similar District
projects in the past.
3
The Project was publicly advertised for bid on October 15, 2013 on
the District’s website and several other publications including the
San Diego Daily Transcript. A Pre-bid Meeting and site visit were
held on October 29, 2013, which was attended by four (4) prime
contractors. Four addenda were sent out to all bidders and plan
houses October 31 through November 8, 2013 to provide pre-bid meeting
minutes and address contractors' questions asked during the bidding
period.
Five (5) bids were received on November 13, 2013. The table below
provides the bid results.
CONTRACTOR BID AMOUNT
1. Coffman Specialties, Inc. $992,380
2. Wier Construction Corporation $999,202
3. Basile Construction, Inc. $1,332,521
4. CCL Contracting Inc. $1,651,606
5. Charles King Company, Inc. $1,164,252*
*Charles King Company, Inc. bid was deemed non-responsive
because Addendum No. 1 updated bid listed was not used.
The Engineer's Estimate is $707,000 for the base bid.
The evaluation process included reviewing all bids submitted for
conformance to the contract documents. The lowest bidder, Coffman,
submitted a responsible bid and holds a Class A Contractor’s license
which expires on November 30, 2013 (staff will confirm that Coffman’s
license is valid at the time of award). Staff checked the references
provided with Coffman’s bid indicating a good performance record on
similar past projects. Staff has verified the bid bond provided by
Coffman is valid. Staff will also verify that Coffman’s performance
bond is valid prior to execution of the contract. The proposed
Project Manager has experience throughout southern California on
similar projects and received good references. A background search
of the company was performed on the internet and revealed no
outstanding issues with this company. Coffman submitted the Company
Background and Company Safety Questionnaires as required by the
Contract Documents. Coffman successfully completed past Caltrans
construction projects.
Staff has verified that the bid bond provided by Liberty Mutual
Insurance Company is valid. Once Coffman signs the contract, they
will furnish the performance bond and labor and materials bond.
Staff will verify both bonds prior to executing the contract.
4
Award of the District’s construction contract to Coffman has a side
benefit of streamlining Caltrans and District coordination. Caltrans
and the District will avoid coordination between two contractors
since only a single contractor (Coffman) will control the site.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP P2453, as approved in the FY 2014 budget, is
$2,250,000. Total expenditures, plus outstanding commitments and
forecast, are $44,796. See Attachment B for budget detail.
Based on a review of the financial budget, the Project Manager
anticipates that the budget for CIP P2453 is sufficient to support
the Project.
Finance has determined that 100% of the funding is available from the
Replacement Fund for CIP P2453.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
high value water and wastewater services to the customers of the Otay
Water District in a professional, effective, and efficient manner”
and the General Manager’s Vision, “A District that is at the
forefront in innovations to provide water services at affordable
rates, with a reputation for outstanding customer service.”
LEGAL IMPACT:
An amendment to the Caltrans Utility Agreement will be processed in
the future since the difference between the low bid ($992K) and the
Engineer’s Estimate ($707K) exceeds 25% of the estimated cost of the
executed Utility Agreement.
JM/BK:jf
P:\WORKING\CIP P2453 SR-11 Utility Relocations\Staff Reports\BD 01-07-14 Staff Report SR-11 Coffman
Specialties Const REV1.docx
Attachments: Attachment A – Committee Action
Attachment B – Budget Detail
Exhibit A – Location Map
Exhibit B – Location Detail Map
ATTACHMENT A
SUBJECT/PROJECT:
P2453-002102 Award of a Construction Contract to Coffman Specialties,
Inc. for SR-11 Potable Water Utility Relocations–Sequence 1
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on December 9, 2013.
The Committee supported Staff's recommendation.
NOTE:
The “Committee Action” is written in anticipation of the Committee
moving the item forward for Board approval. This report will be sent
to the Board as a Committee approved item, or modified to reflect any
discussion or changes as directed from the Committee prior to
presentation to the full Board.
ATTACHMENT B – Budget Detail
SUBJECT/PROJECT:
P2453-002102 Award of a Construction Contract to Coffman Specialties,
Inc. for SR-11 Potable Water Utility Relocations–Sequence 1
Date Updated: 11/14/2013
Budget
2,250,000
Planning
Standard Salaries 10,205 10,205 - 10,205 STAFF LABOR
Total Planning 10,205 10,205 - 10,205
Design 001102
Standard Salaries 80,804 80,804 80,804 STAFF LABOR
Consultant Contracts 77,325 58,101 19,224 77,325 ATKINS
2,763 2,763 - 2,763 V & A CONSULTING ENGINEERS
970 970 - 970 ALTA LAND SURVEYING INC
4,901 4,901 - 4,901 NARASIMHAN CONSULTING SERVICES
2,561 2,561 - 2,561 CPM PARTNERS INC
Professional Legal Fees 101 101 - 101 STUTZ ARTIANO SHINOFF
Service Contracts 2,765 - 2,765 2,765 UNDERGROUND SOLUTIONS INC
1,382 1,382 - 1,382 US BANK
1,382 1,382 - 1,382 US BANK CORPORATE PAYMENT
3,197 1,697 1,500 3,197 MAYER REPROGRAPHICS INC
84 84 - 84 SAN DIEGO DAILY TRANSCRIPT
Total Design 178,235 154,746 23,488 178,235
Construction
Standard Salaries 51,814 11,814 40,000 51,814 STAFF LABOR
Consultant Contracts 5,000 - 5,000 5,000 ATKINS CONSTRUCTION SUPPORT
30,000 - 30,000 30,000 ALYSON CONSULTING
Construction Contract 992,380 - 992,380 992,380 COFFMAN SPECIALTIES
24,063 - 24,063 24,063 CLOSEOUT
Reinbursement Agreement (961,521) - (961,521) (961,521) CALTRANS UTILITY AGREEMENT
(285,380) (285,380) (285,380) FUTURE CALTRANS AMENDMENT
Total Construction (143,644) 11,814 (155,458) (143,644)
Grand Total 44,796 176,765 (131,970) 44,796
Vendor/Comments
Otay Water District
p2453-SR-11 Utility Relocations
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
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SEQUENCE I
Calzada de la Fuente
Siempre Viva Rd Enrico Fermi Dr
PROPOSED STATE ROUTE 11
Harvest Rd
Alta Rd
Sanyo Ave
Otay Mesa Rd
Airway Rd
Dornoch Ct
SEQUENCE II
Piper Ranch Rd
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P:\WORKING\CIP P2453 SR-11 Utility Relocations\Graphics\Exhibits-Figures\Exhibit A, Location Map.mxd
OTAY WATER DISTRICTSR-11 UTILITY RELOCATIONSLOCATION MAP
EXHIBIT A CIP P2453F
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FOR LOCATIONDETAIL SEEEXHIBIT B
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OTAY WATER DISTRICTSR-11 UTILITY RELOCATIONS - SEQUENCE 1LOCATION DETAIL MAP
EXHIBIT B CIP P2453F
0 15075Feet
NOTES1. PROPOSED 10" PVC DISTRIBUTION MAIN TO REPLACE EXISTING 10" ACP DISTRIBUTIONMAIN TO BE REMOVED.2. PROPOSED 18" STEEL TRANSMISSION MAIN AND 32" STEEL CASING TO REPLACE 18"STEEL TRANSMISSION MAIN AT LOWER ELEVATION.3. EXISTING 12" ACP TO BE REMOVED AND REPLACED TO ACCOMODATE STORM DRAINCONSTRUCTION.
Legend
Proposed SR-11
Proposed Waterline
Existing Waterline to be Removed
Existing Waterline to Remain
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: January 7, 2014
SUBMITTED BY:
Bob Kennedy
Engineering Manager
PROJECT: S2027-001103 DIV. NO. 3
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Authorization to Execute a Reimbursement Agreement between the
San Diego County Sanitation District and the Otay Water
District for Project Costs Associated with the Rancho San
Diego Pump Station Rehabilitation Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board):
1. Increase the budget for S2027 by $600,000 (increase overall
CIP budget from $2,900,000 to $3,500,000).
2. Authorize the General Manager to execute an Agreement between
the San Diego County Sanitation District (County) and the
District for reimbursement to the County for design and
construction costs associated with the Rancho San Diego Pump
Station (RSDPS) Rehabilitation Project (see Exhibit A for
Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To increase the budget for S2027 and to obtain Board authorization
for the General Manager to execute an Agreement (Exhibit B) with the
County for costs associated with the Rancho San Diego Pump Station
Rehabilitation Project. The Agreement provides that the District
will reimburse the County for up to $3,300,000.
2
ANALYSIS:
The San Diego County Sanitation District, as successor to the Spring
Valley Sanitation District, entered into an agreement with the
District for joint use and cost sharing of sewer facilities in 1997,
as documented in the County Sanitation Minute Order No. 3. The
Rancho San Diego Pump Station is one of the shared facilities and is
identified in the Minute Order as the RSDPS. Costs for the RSDPS are
to be split equally between the County and District.
The RSDPS requires improvements to existing pumps, piping, pipe
accessories, and electrical facilities. The improvements will be
implemented in two phases: Design and Construction. The design of
the improvements is currently underway. The District has
participated in a 30% design review of the improvements, and will
review the Construction Documents at the 70% and 100% levels of
completion. Black & Veatch is completing the design and is scheduled
to have the Construction Documents ready for construction bids in
April 2014.
The County will be responsible for all aspects of design, bidding,
award, and construction of the RSDPS improvements. Project
completion is projected for March 2016.
The attached agreement (Exhibit B) provides for reimbursement to the
County to cover the actual design and construction costs for the
improvements. Design costs are currently estimated at $800,000,
which includes County administration costs. Construction is
currently estimated at $5,800,000, which includes construction
contract and construction support costs. The District will share in
50% of these costs for a not-to-exceed maximum of $3,300,000 without
prior written agreement by the parties.
FISCAL IMPACT: Joseph Beachem, Chief Financial Officer
The total budget for CIP S2027, as approved in the FY 2014 budget, is
$2,900,000. Expenditures to date are $45,782. Total expenditures,
plus outstanding commitments and forecast, is are $3,369,547, as
shown in Attachment B – Budget Detail for CIP S2027.
Based on a review of the financial budget, the Project Manager
anticipates that with a budget increase of $600,000 the Project will
be completed within the new budget amount of $3,500,000.
Currently, it is anticipated that the Sewer reserves are sufficient
to cover this additional expenditure. However, this will increase
3
the amount of debt funding that is already anticipated in fiscal year
2016. The added borrowing will add upward pressure on the sewer
rates. Staff has already begun to explore the options available to
obtain debt financing and does not foresee any problem with obtaining
the additional funding.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
high value water and wastewater services to the customers of the Otay
Water District in a professional, effective, and efficient manner”
and the General Manager’s Vision, “A District that is at the
forefront in innovations to provide water services at affordable
rates, with a reputation for outstanding customer service.”
LEGAL IMPACT:
The District’s General Council and the County’s Attorney have
reviewed and accepted the Agreement as to form and legality.
BK:jf
P:\WORKING\CIP S2027 Reimbursement Agreement for RSD Pump Station Improvements\Staff Reports\BD 01-07-
14, Staff Report, (BK-RP).docx
Attachments: Attachment A – Committee Action
Attachment B – Budget Detail
Exhibit A – Location Map
Exhibit B – Agreement
ATTACHMENT A
SUBJECT/PROJECT:
S2027-001103
Authorization to Execute a Reimbursement Agreement between
the San Diego County Sanitation District and the Otay Water
District for Project Costs Associated with the Rancho San
Diego Pump Station Rehabilitation Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee)
reviewed this item at a meeting held on December 9, 2013. The
Committee supported Staff’s recommendation.
NOTE:
The "Committee Action" is written in anticipation of the Committee
moving the item forward for Board approval. This report will be sent
to the Board as a Committee approved item, or modified to reflect any
discussion or changes as directed from the Committee prior to
presentation to the full Board.
ATTACHMENT B – Budget Detail
SUBJECT/PROJECT:
S2027-001103
Authorization to Execute a Reimbursement Agreement between
the San Diego County Sanitation District and the Otay Water
District for Project Costs Associated with the Rancho San
Diego Pump Station Rehabilitation Project
Date Updated: 11/06/2013
Budget
2,900,000
Planning
Professional Legal Fees 420 420 - 420 STUTZ ARTIANO SHINOFF
Standard Salaries 38,375 38,375 - 38,375
Total Planning 38,795 38,795 - 38,795
Design
Standard Salaries 45,000 4,073 40,927 45,000
Interagency Reimbursement Cost 400,000 - 400,000 400,000 SD COUNTY SANITATION DISTRICT
Total Design 445,000 4,073 440,927 445,000
Construction
Standard Salaries 116,205 - 116,205 116,205
Interagency Reimbursement Cost 2,900,000 - 2,900,000 2,900,000 SD COUNTY SANITATION DISTRICT
Total Construction 3,016,205 - 3,016,205 3,016,205
Grand Total 3,500,000 42,868 3,457,132 3,500,000
Vendor/Comments
Otay Water District
s2027-Rancho San Diego Pump Station Rehabilitation Project
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
SINGER LANE
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PROJECT SITERancho San Diego Pump Station
Steele Canyon Pump Station
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OTAY WATER DISTRICTREIMBURSEMENT AGREEMENT WITHCOUNTY OF SAN DIEGO FOR THERANCHO SAN DIEGO PUMP STATION IMPROVEMENTS
EXHIBIT A
CIP S2027
0 200100
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EXHIBIT B
Page 1 of 10
REIMBURSEMENT AGREEMENT FOR PROJECT COSTS FOR
THE RANCHO SAN DIEGO PUMP STATION IMPROVEMENTS
BY AND BETWEEN THE OTAY WATER DISTRICT
AND THE SAN DIEGO COUNTY SANITATION DISTRICT
THIS REIMBURSEMENT AGREEMENT FOR PROJECT COSTS FOR THE
RANCHO SAN DIEGO PUMP STATION IMPROVEMENTS (“Agreement”),
dated_____________________, 2014, is entered into by and between the Otay
Water District ("Otay") and the San Diego County Sanitation District ("Sanitation
District"). Otay and Sanitation District may be referred to herein individually as
"Party" and collectively as the "Parties."
RECITALS
WHEREAS, the Sanitation District, as the successor in interest of the Spring
Valley Sanitation District, and Otay entered into an agreement in 1997 for the joint
use of sewer facilities entitled “Agreement Between Spring Valley Sanitation District
and Otay Water District for Joint Use of Sewer Facilities and Cost Sharing,” on file
with the Clerk of the Board of Supervisors for San Diego County, California as
approved by Sanitation Minute Order No. 3 on July 22, 1997 (hereinafter “Joint Use
Agreement”).
WHEREAS, in accordance with the Joint Use Agreement, the Sanitation
District and Otay agreed to share the cost of repairing and improving joint use
facilities, including the Rancho San Diego Pump Station, which is identified in the
Joint Use Agreement individually as the “RSPDS” and with other facilities as part of
the “RSD Interceptor.”
WHEREAS, Sanitation District wishes to make improvements to the
Rancho San Diego Pump Station for the benefit of Otay and Sanitation District,
which will include the replacement of pumps, mechanical piping, electrical
components and other improvements (hereinafter “Rancho San Diego Pump
Station Improvements”).
WHEREAS, in accordance with Section 7(c) of the Joint Use Agreement,
Otay and Sanitation District have determined that the cost of the Rancho San Diego
Pump Station Improvements should be split equally between the Parties.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants herein
contained, it is agreed by and between the Parties hereto, as follows:
EXHIBIT B
Page 2 of 10
ARTICLE I. DEFINITIONS
1.1 Definitions. Unless the context otherwise requires, the terms defined in this
Section shall have the meanings herein specified for all purposes of this
Agreement and of any amendment hereto, and of any certificate, opinion,
estimate or other document herein mentioned.
“Agreement” means this “Reimbursement Agreement for Project Costs for the
Rancho San Diego Pump Station Improvements.”
“Construction Contract” means the construction contract awarded by the
Sanitation District to the lowest responsible and responsive bidder for the
Project.
“Construction Documents” means the design plans, specifications and cost
estimate to be approved by Otay in accordance with Article II of this Agreement
which approval shall be deemed to satisfy the approval requirements of
Section 9 of the Joint Use Agreement.
“Emergency” means an unexpected or unforeseen event that may pose a risk
to the public or significantly increase Project costs as a result of delay or for
other reasons and is used in the Agreement in the context of authorizing
Construction Contract change orders or extra work.
“Joint Use Agreement” refers to the agreement between the Sanitation District,
as the successor in interest of the Spring Valley Sanitation District, and Otay
entered into in 1997 for the joint use of sewer facilities entitled “Agreement
Between Spring Valley Sanitation District and Otay Water District for Joint Use
of Sewer Facilities and Cost Sharing,” on file with the Clerk of the Board of
Supervisors for San Diego County, California as approved by Sanitation
Minute Order No. 3 on July 22, 1997.
"Otay" means the Otay Water District, a municipal water district duly organized
and existing under the Municipal Water District Law of 1911, as set forth in the
California Water Code.
"Project" means the Rancho San Diego Pump Station Improvements.
"Project Costs" means the total dollar amount of costs associated with the
Project that are recoverable pursuant to Section 7(c)(2) of the Joint Use
Agreement, including, but not limited to labor, oversight, bidding, permits,
design consultants, easement acquisition, construction contracts,
environmental review and change orders.
EXHIBIT B
Page 3 of 10
"Rancho San Diego Pump Station Improvements" mean, collectively, the
replacement of pumps, mechanical piping, electrical components and other
improvements to the Rancho San Diego Pump Station as will be more
particularly detailed in the Construction Documents.
"Sanitation District " means the San Diego County Sanitation District, a sewer
district formed and operating pursuant to the County Sanitation District Act,
California Health & Safety Code § 4700 et seq., and the successor in interest
to the Spring Valley Sanitation District by virtue of a change of organization
approved by the San Diego Local Agency Formation Commission effective
July 1, 2011.
ARTICLE II. DESIGN/BIDDING
2.1 Design Phase. Sanitation District shall submit the Construction Documents for
Project to Otay to review and provide comments. Otay shall provide
comments within thirty (30) days of the receipt of the Construction Documents.
This requirement shall be deemed satisfied if Otay is given the opportunity to
comment on Construction Documents at the 30%, 70%, and 100% design.
The Sanitation District estimates that the design phase will cost $800,000,
which includes design consultant and staff support costs.
2.2 Construction Documents/Project Construction.
2.2.1 Approval. Prior to advertisement of a construction contract, an
authorized representative of Otay shall approve and sign the final
Construction Plans. Otay shall not unreasonably condition or delay final
approval. Only the final approved Construction Plans shall be included
in the Sanitation District’s Request for Bids for the Project.
2.2.2 Bidding and Award. Sanitation District shall be responsible for all
aspects of the design, bidding and award of a contract for the
construction and installation of the Project.
2.2.2.1 Bid Package. Sanitation District shall be responsible for
preparing and circulation of the bid package.
2.2.2.2 Meetings. Sanitation District shall organize all pre-bid meetings
and shall inform Otay of the time and date of such meeting, so
that a representative of Otay may be present.
2.2.2.3 Selection of Lowest Responsible Bidder. Sanitation District, at
its sole discretion, shall determine the lowest responsible
bidder, which determination shall be binding on Otay.
Sanitation District shall be solely responsible for its
determination and agrees to protect, defend, and indemnify
EXHIBIT B
Page 4 of 10
Otay with respect to any claims or litigation arising from or
related to said determination.
2.2.2.4 Execution of Construction Contract. Sanitation District shall be
responsible for executing the Construction Contract on the
behalf of itself and Otay and ensure that Otay is identified as a
third-party beneficiary of such agreement with the same rights
and remedies as the Sanitation District.
ARTICLE III. CONSTRUCTION
3.1 Project Completion and Warranty. Otay and Sanitation District anticipate that
Project will be completed on or about March 2016. Project, however, will not
be deemed completed or accepted until Sanitation District has accepted the
work. The contractor shall warrant all work for a period of no less than one (1)
year from the date of acceptance. Acceptance will be evidenced by the filing
of a Notice of Completion by the Sanitation District with the County of San
Diego Recorder. The Construction Contract shall include this definition of
project completion and acceptance. The Sanitation District estimates the
construction phase will cost $5,800,000, which includes construction contract
and construction support costs.
ARTICLE IV. REIMBURSEMENT OF COSTS
4.1 Project Cost Reimbursement. Sanitation District will invoice Otay on an annual
basis for the actual costs of the project. In accordance with Section 7(c)(2) of
the Joint Use Agreement, within forty-five (45) calendar days of receiving a bill
from the Sanitation District detailing the Project Costs, Otay will be
responsible for fifty percent of the total Project Costs incurred, not to exceed
$3.3 million without prior written agreement by the Parties.
ARTICLE V. CHANGE ORDERS
5.1 Emergencies. Sanitation District may authorize contractor under the
Construction Contract to proceed with any proposed construction changes
and/or change orders, without consulting with Otay, in the event of an
Emergency, as determined in the sole discretion of the Sanitation District.
Notwithstanding the foregoing Sanitation District shall use its best efforts to
notify Otay, as soon as reasonably possible, of the changes. Further, in all
instances not constituting an emergency, Sanitation District shall notify and
consult with Otay on any proposed change order as soon as reasonably
possible.
5.2 Errors and Omissions. Sanitation District shall not make payment to design
consultants or contractor or charge Otay for any costs or expenses of a change
EXHIBIT B
Page 5 of 10
order resulting from an error or omission for which the design consultants or
contractor is solely responsible.
ARTICLE VI. INSPECTION
6.1 Inspection Team. If reasonably required by the circumstances, Sanitation
District will provide a full time inspector(s) to manage and monitor the Project
during the construction phase.
6.2 Inspection Stages and Obligations. Otay shall have the right to conduct
inspections of the Project during construction.
6.3 Inspection Costs. All inspection costs incurred by Otay will be borne by Otay.
6.4 Notification. Otay shall notify Sanitation District of any requested inspections
at least twenty-four (24) hours prior to the inspection or such other shorter time
as Otay and District may agree to in writing.
ARTICLE VII. INSURANCE
7.1 Contractor's Insurance. Sanitation District shall ensure that its contractor
provides evidence of insurance coverage, as required by Sanitation District,
for the entire construction and, if applicable, warranty period. Such insurance
shall, at a minimum, include a comprehensive general liability policy in an
amount sufficient to cover all contractual obligations of the contractor under
the Construction Contract, and no less than $2,000,000. The policy of
insurance shall name the Sanitation District and Otay, and their respective
employees, officers, governing body members, and agents, as additional
insureds, require a waiver of subrogation, and be primary insurance.
Furthermore, Sanitation District shall obtain evidence that the contractor
maintains worker's compensation insurance in accordance with applicable
requirements of law.
7.2 Parties' Insurance. Otay and Sanitation District shall maintain insurance as
customary in connection with their respective facilities.
ARTICLE VIII. INDEMNITY
8.1 Indemnity. Each Party hereto agrees to defend, indemnify, protect, and hold
harmless ("Indemnitor") the other Party, its agents, officers, and employees
("Indemnitees") from and against any and all claims asserted or liability
established for damages or injuries to any property or person, including death
or dismemberment, which arise from or are caused by the negligent acts or
omissions or willful misconduct of the Indemnitor's agents, officers or
employees, in performing the work or services herein and all expenses of
investigation and defending against same; provided, however, that each
EXHIBIT B
Page 6 of 10
Party's duty to defend, indemnify and hold harmless the other shall not include
any claims or liability arising from the sole negligence or willful misconduct of
the other Indemnitee, its agents, officers or employees. Otay and Sanitation
District agree that in the event of any joint or concurrent negligence, they will
apportion any established or agreed upon liability proportionate to their
respective degree of fault. For the purposes of this provision, the Sanitation
District's contractor shall not be considered an agent of the Sanitation District
or Otay. Claims related to the actions or omissions of the Sanitation District’s
contractor shall be addressed through provisions in the Construction Contract,
which provisions shall include indemnity, defense, and hold harmless
provisions from the Sanitation District's contractor in favor of both the
Sanitation District and Otay.
ARTICLE IX. RECORDS
9.1 Retention of Records. Sanitation District shall require the Project contractor to
maintain records related to this Construction Contract for a period of not less
than four (4) years following notice of completion of the Project.
9.2 Audit of Records. Sanitation District shall make available and shall require that
its contractor make available to Otay for examination at reasonable locations
within the County of San Diego and at any time during normal business hours
and as often as Otay deems necessary, all of the records with respect to all
matters covered by this Agreement and the Construction Contract. Sanitation
District and contractor will permit Otay to make audits of all invoices, materials,
payrolls, records of personnel, and other records relating to all matters
covered by this Agreement and the Construction Contract. Otay shall be
solely responsible for the costs of any audits requested by it.
ARTICLE X. NOTICES
10.1 Writing. Any demand upon or notice required or permitted to be given by one
Party to the other Party shall be in writing.
10.2 Effective Date. Except as otherwise provided by law, any demand upon or
notice required or permitted to be given by one Party to the other Party shall
be effective: (i) on personal delivery, (ii) on the second business day after
mailing by certified or registered U.S. Mail, return receipt requested, (iii) on the
succeeding business day after mailing by Express Mail or after deposit with a
private delivery service of general use (e.g., Federal Express) postage or fee
prepaid as appropriate, or (iv) upon successful transmission of facsimile.
10.3 Recipients. All demands or notices required or permitted to be given shall be
sent to all of the following:
EXHIBIT B
Page 7 of 10
10.3.1 Otay:
Otay Water District
2554 Sweetwater Springs Boulevard
Spring Valley, California 91978
Fax: 619-670-8920
Attention: District Project Manager
10.3.2 Sanitation District:
San Diego County Sanitation District
Department Of Public Works, Wastewater Section
5500 Overland Avenue, Suite 315
San Diego, California 92123
Attention: Sanitation District Project Manager
10.4 Change of Address(es). Notice of change of address shall be given in the
manner set forth in this Article.
ARTICLE XI. MISCELLANEOUS
11.1 Headings. All article headings are for convenience only and shall not affect the
interpretation of this Agreement.
11.2 Gender & Number. Whenever the context requires, the use herein of (i) the
neutral gender includes the masculine and the feminine genders and (ii) the
singular number includes the plural number.
11.3 Reference to Paragraphs. Each reference in this Agreement to a section
refers, unless otherwise stated, to a section of this Agreement.
11.4 Incorporation of Recitals. All recitals herein are incorporated into this
Agreement and are made a part hereof.
11.5 Covenants and Conditions. All provisions of this Agreement expressed as
either covenants or conditions on the part of the Sanitation District or Otay,
shall be deemed to be both covenants and conditions.
11.6 Integration. This Agreement and any Exhibits and references incorporated into
this Agreement fully express all understandings of the Parties concerning the
matters covered in this Agreement. No change, alteration, or modification of
the terms or conditions of this Agreement, and no verbal understanding of the
Parties, their officers, agents, or employees shall be valid unless made in the
form of a written change agreed to in writing by both Parties or an amendment
to this Agreement agreed to by both Parties. All prior negotiations and
agreements are merged into this Agreement.
EXHIBIT B
Page 8 of 10
11.7 Severability. The unenforceability, invalidity, or illegality of any provision of this
Agreement shall not render any other provision of this Agreement
unenforceable, invalid, or illegal.
11.8 Drafting Ambiguities. The Parties agree that they are aware that they have the
right to be advised by counsel with respect to the negotiations, terms and
conditions of this Agreement, and the decision of whether or not to seek advice
of counsel with respect to this Agreement is a decision that is the sole
responsibility of each Party. This Agreement shall not be construed in favor of
or against either Party by reason of the extent to which each Party participated
in the drafting of the Agreement.
11.9 Conflicts Between Terms. If a conflict or inconsistency exists between this
Agreement, the Joint Use Agreement and any laws, rules, regulations, orders,
or codes, the conflict shall be resolved in a manner that best effects the intent
of the Parties to ensure an equal allocation of Project Costs. Each Party shall
notify the other immediately upon the identification of any apparent conflict or
inconsistency concerning this Agreement.
11.10 Prompt Performance. Time is of the essence of each covenant and condition
set forth in this Agreement.
11.11 Good Faith Performance. The parties shall cooperate with each other in good
faith, and assist each other in the performance of the provisions of this
Agreement.
11.12 Further Assurances. Sanitation District and Otay each agree to execute and
deliver such additional documents as may be required to effectuate the
purposes of this Agreement. Approval of this Agreement by the Board of
Directors of the Sanitation District shall be deemed to include a delegation
authority to the Director, Department of Public Works, or his designee to
execute and deliver such additional documents.
11.13 Controlling Law. The laws of the State of California shall govern and control
the terms and conditions of this Agreement.
11.14 Jurisdiction, Venue, and Attorney Fees. The venue for any suit or proceeding
concerning this Agreement, the interpretation or application of any of its terms,
or any related disputes shall be in the County of San Diego, State of California.
11.15 Agency/Municipal Powers. Nothing contained in this Agreement shall be
construed as a limitation upon the powers of Otay or the Sanitation District.
11.16 Third Party Relationships. Nothing in this Agreement shall create a contractual
relationship with any third party; however, the Sanitation District shall ensure
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that Otay is an intended third party beneficiary of the Construction Contract
and shall share all of the rights and benefits of the Sanitation District with
respect to the contractor.
11.17 Limitation on Otay Remedies and Waiver of Claims. Otay understands that the
sole purpose of this Agreement is to establish a method to reimburse the
Sanitation District for obligations of Otay for payment of Project Costs. In
accordance with such purpose, Otay agrees that its sole remedy for
construction defects, breach by contractor of the Construction Contract,
damage to property or persons, including death, to Otay personnel or any third
parties, or other claims arising out of or related to the work performed to install
and/or construct Project improvements shall be against the Sanitation
District's contractor or its subcontractors and agents, and, hereby, waives any
and all claims it may hereafter have against the Sanitation District, arising out
of the same, except for those claims arising out of the negligence or willful
misconduct of the County. This waiver extends to and includes a waiver of
any rights Otay may have by virtue of California Civil Code § 1542.
11.18 Non-Assignment. Except as it relates to the Construction Contract, the
Sanitation District shall not assign the obligations under this Agreement
without the consent of Otay, which consent shall not be unreasonably
withheld.
11.19 Successors in Interest. This Agreement and all rights and obligations created
by this Agreement shall be in force and effect whether or not any Parties to
the Agreement have been succeeded by another entity, and all rights and
obligations created by this Agreement shall be vested and binding on any
Party's successor in interest.
11.20 No Waiver. No failure of either the Sanitation District or Otay to insist upon the
strict performance by the other of any covenant, term or condition of this
Agreement, nor any failure to exercise any right or remedy consequent upon
a breach of any covenant, term, or condition of this Agreement, shall constitute
a waiver of any such breach of such covenant, term or condition. No waiver of
any breach shall affect or alter this Agreement, and each and every covenant,
condition, and term hereof shall continue in full force and effect to any existing
or subsequent breach.
11.21 Administrative Claims Requirements and Procedures. The Parties shall meet
and confer in good faith prior to initiating any claims, actions or other
proceedings against one another related to this Agreement. The alternative
dispute resolution proceedings in the Joint Use Agreement shall apply to any
disputes arising from this Agreement.
11.22 Administration of Contract. Sanitation District hereby designates Mark Perrett
as the Sanitation District Project Manager for the Project and as the primary
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contact for all matters relating to this Agreement, including the submittal of
Sanitation District invoices for reimbursement.
Otay hereby designates Kevin Schmidt, as the Otay Project Manager and as
the primary contact for all matters relating to this Agreement, including the
processing, documenting, and approval of Sanitation District invoices.
11.23 Signing Authority. The representative for each Party signing on behalf of such
Party hereby declares that authority has been obtained to sign on behalf of the
Sanitation District and/or Otay, as applicable and agrees to hold the other
Party or Parties hereto harmless if it is later determined that such authority
does not exist.
11.24 Impact on Joint Use Agreement. The terms of this Agreement shall prevail
over any contrary provisions in the Joint Use Agreement with respect to those
matters related to the sharing of Project Costs. This Agreement shall not
otherwise be interpreted to modify or amend the Joint Use Agreement.
IN WITNESS WHEREOF, Sanitation District and Otay have executed this
Agreement thereby indicating that they have read and understood same, and
indicate their full and complete consent to its terms:
San Diego County Sanitation District Otay Water District
Dated: ______________________ Dated:______________________
By: ______________________ By: ______________________
Mark Watton, General Manager
APPROVED AS TO FORM:
___________________________
Legal Counsel