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HomeMy WebLinkAboutRDA Packet 1998/06/02 Tuesday, June 2, 1998 Council Chambers 4:00 p.m. Public Services Building (immediately following the City Council meeting) Regular Meeting of the Redevelopment Agencv of the City of Chula Vista CALL TO ORDER 1. ROLL CALL: Agency Members Moot -' Padilla -' Rindone -' Salas -' and Chmr Horton - CONSENT CALENDAR ( Item 2 through 4 ) (Will be voted on immediately following the Council Consent Calendar during the City Council meeting) The staff recommendations regarding the following item listed under the Consent Calendar will be enacted by the Agency by one motion without discussion unless an Agency member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will be the first items of business. 2. APPROVAL OF MINUTES: May 5, 1998 3. RESOLUTION 1584: APPROVING A TWO-PARTY AGREEMENT FOR SOlL REMEDIATION CONSULTING SERVICES BETWEEN THE REDEVELOPMENT AGENCY AND BFGW GROUP, LLC, FOR THE PURPOSES OF REMOVING CONTAMINATED SOILS FROM THE AGENCY-OWNED PROPERTY LOCATED AT 980 LAGOON DRIVE, AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE SAME, AND APPROPRIATING FUNDS INTO ClP RD-229 FOR SITE WORK RELATED TO PENDING SALE TO THE PORT DISTRICT--On 06/10/97, the Agency/Council approved an Agreement for Purchase and Sale between the City and the San Diego Unified Port District for the sale of 980 Lagoon Drive. The agreement contmns specific provisions for the remediation of known contamination on the site. The Port has advanced funds through escrow for the Agency to use for the purposes of site remediation. Staff recommends approval of the resolution. (Community Development Director) 4. RESOLUTION 1585 REJECTING BIDS FOR THE "SEWER P-TRAP AT 850 LAGOON DRIVE IN THE CITY OF CHULA VISTA, CALIFORNIA (RD-220)" PROJECT, AND DIRECTING STAFF TO RE-ADVERTISE THE PROJECT--On 02/18/98, the Director of Public Works received sealed bids for the construction of a sewer p-trap at 850 Lagoon Drive. After the bids were received, it was determined that the funding source is defined as public funds and requires the City to pay prevailing wages; therefore, the bids received are invalid. Staff recommends approval of the resolution. (Director of Public Works) . . . END OF CONSENT CALENDAR' . . ADJOURNMENT TO CITY COUNCIL MEETING Agenda -2- June 2, 1998 ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's Jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to address the Agency on such a subject, please complete the "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes andfollow up action. ITEMS PULLED FROM THE CONSENT CALENDAR This is the time the Redevelopment Agency will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Agency Members. OTHER BUSINESS 4. DIRECTOR'S REPORT(s) 5. CHAIR'S REPORT(S) 6. AGENCY MEMBER COMMENTS ADJOURNMENT The meeting will adjourn to the Regular Redevelopment Agency Meeting on June 16, 1998 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers. MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Tuesday, May 5, 1998 Council Chambers 9:15 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Agency Members: Moot, Padilla, Rindone, Salas, and Chair Horton ABSENT: Agency Members: None ALSO PRESENT: Executive Director, David D. Rowlands; Legal Counsel, John M. Kaheny; city Clerk, Beverly A. Authelet; and Deputy City Clerk, Charline V. Long CONSENT CALENDAR (Items pulled: none). CONSENT CALENDAR OFFERED BY CHAIR HORTON, headings read, texts waived, passed and approved unanimously 5-0. 2. APPROVAL OF MINUTES: April 21, 1998 - minutes were approved unanimously 5-0. 3. RESOLUTION 1581 APPROVING THE CHANGE ORDER TO THE COST SHARING AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY, B.F. GOODRICH AEROSPACE, AEROSTRUCTURES GROUP, THE SAN DIEGO UNIFIED PORT DISTRICT AND BFGW GROUP, LLC FOR SERVICES RELATED TO GROUNDWATER BASIN REDESIGNATION; AND AUTHORIZING EXECUTIVE DIRECTOR TO EXECUTE SAME - On 07/22/97, the Agency authorized the execution of a cost sharing agreement for purposes of retaining a consultant to coordinate and prepare an application to the Regional Water Quality Control Board to remove the beneficial use designation from the groundwater basin in the area of the Chula Vista Bayfront. Additional support services are required that are beyond the original scope of the consultant agreement, necessitating a change order to that agreement. Resolution approved unanimously 5-0. (Community Development Director) * * * END OF CONSENT CALENDAR * * * ORAL COMMUNICATIONS None. ITEMS PULLED FROM THE CONSENT CALENDAR None OTHER BUSINESS 4. DIRECTOR'S REPORT(S) - none. 5. CHAIR'S REPORT(S) - none. 6. AGENCY MEMBER COMMENTS - none ~-I -.- -- -- RDA Minutes May 5, 1998 Page 2 ADJOURNMENT The meeting adjourned at 9:16 p.m. Respectfully submitted, Beverly A. Authelet, CMC/AAE City Clerk 02-d-- --- -- ,.- REDEVELOPMENT AGENCY AGENDA STATEMENT Item ..3 Meeting Date 06/02/98 ITEM TITLE: RESOLUTION /.:S'i?t.f APPROVING A TWO,PARTY AGREEMENT FOR SOIL REMEDIATION CONSULTING SERVICES BETWEEN THE REDEVElOPMENT AGENCY AND BFGW GROUP, LLC, FDR THE PURPOSES OF REMOVING CONTAMINATED SOILS FROM THE AGENCY.OWNED PROPERTY LOCATEO AT 980 LAGOON DRIVE, AUTHORIZING THE EXECUTIVE OIRECTOR TO EXECUTE SAME, ANO APPROPRIATING FUNOS INTO CIP RO,229 FOR SITE WORK RElATED TO PENDING SALE TO THE PORT OISTRICT SUBMITTED BY: Community Oevelopment Director (¿ 7 . REVIEWED BY: "oc"';.. o;re<"'PR ~ @. (4/5ths Vote: Yes..x. No_I BACKGROUND: On June 10, 1997, in a joint meeting, the Council and Agency approved Council Resolution 18690 and Agency Resolution 1543, approving an Agreement for Purchase and Sale between the City of Chula Vista and the San Diego Unified Port Oistrict for the Sale of 980 Lagoon Orive (Shangrila Site). The Agreement contains specific provisions for the remediation of known contamination on the site. The Port has advanced funds through escrow for the Agency to use for the purposes of site remediation. The recommended action is approval of a consultant agreement to begin remediation of the contamination and appropriation of the funds provided by the Port into a CIP to fund this and subsequent work on the site. RECOMMENDATION: That the Agency approve the resolution approving a Two-Party Agreement for Soil Remediation Consulting Services between the Redevelopment Agency and BFGW Group, LLC, for the purposes of removing contaminated soils from the Agency.owned property located at 980 Lagoon Orive, authorizing the Executive Oirector to execute same, and appropriating funds into CIP RO,229 BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: Soils on the property are known to be contaminated as a result of previous industrial uses on the site. The Sale Agreement established an acquisition price of $981,000 based on highest and best reuse (office/commercial). Escrow was opened earlier this year, at which time the Port deposited $500,000 into an interest bearing escrow account. These funds have been made available for use by the Agency for ~-f __0 -- ,. - Page 2, Item -E Meeting Date 06/02/98 cleanup of contamination on the site. The deposit plus any interest earned on the deposit will be credited to the purchase price. In the event that escrow does not close through no fault of the Port, the Agency is obligated to return all released funds to the Port plus interest. Alternatively, in the event the Agency/City do not reimburse the Port as described above, the agreement allows the City to offset the amount due including interest from the Port's CIP funds allocated to the City. A one year contingency period is provided from the opening of escrow for the Agency to remediate contamination on the site. This period may be extended by the City, if necessary, by one additional year so long as the City is proceeding diligently to clean up the site. The agreement requires the Agency to complete remediation work and to deliver a "certificate of completion" or "closure letter" to the Port from the Regional Water Control Board and/or the State Oepartment of Toxic Substances Control, whichever is the lead agency, and concurrence letters from all other government agencies with jurisdiction over the removal and remediation of contamination. Approval of the proposed contract would begin the remediation process by removing the known contaminated soils from the site. It is anticipated that completion of this phase of the cleanup would occur within three months of authorization of the contract. In addition to the known contamination in the exposed areas, there may be contamination that exists beneath the existing parking lot slab and loading dock area. Some additional testing will need to be done for these areas after demolition and removal of the concrete is completed. If contamination is discovered in these areas, additional remediation work will need to be pursued. If such remediation is required, additional work will need to be performed before the City can meet all of the requirements of the Purchase and Sale Agreement. Staff believes that it is reasonable and cost effective to begin removal of the known contaminated soils now, while conducting demolition and any additional soil and/or groundwater testing concurrently, since the proposed soil remediation can be conducted in a discreet phase from the demolition work. This approach would save time and improve the City's ability to satisfy the conditions and schedule set forth in the Purchase and Sale Agreement. In addition to the actual remediation of the site, the Purchase and Sale Agreement obligates the Agency to use its best efforts to enter into a Prospective Purchaser Agreement with the State Oepartment of Toxic Substances (OTSC) which would provide the Port with liability protection and a covenant not to sue from the OTSC for existing contamination. Additionally, the Agency agrees to enforce its authority under the Polanco Act to identify and notice responsible parties concerning the investigation and cleanup of contamination on the site. The Agency and the Port will also enter into a separate indemnification agreement after remediation is complete and prior to close of escrow to assure that the Port has no liability for the presence or release of contamination on the property. These provisions require consulting services beyond the scope of the subject Consultant Agreement. However, staff believes that the scope of services required to satisfy all of the conditions of the Purchase and Sale Agreement are too difficult to define at this time for the purposes of a single contract. Staff recommends proceeding with the soil remediation first, then addressing these additional provisions once the Agency has determined the specific requirements of the applicable regulatory agencies. Therefore, the subject consultant agreement satisfies only a portion of the ...3 - d.. -.. -- ,.- Page 3, Item ...3..... Meeting Date 06/02/98 obligations of the Agency under the Purchase and Sale Agreement. Additional consultant work will likely be needed to fulfill all of the Agency's obligations. Those will be brought forward at future dates. The Agency is in receipt of the $500,000 sum that the Port deposited into escrow. A CIP account has been identified to receive these funds. The Agency needs to formally take action to appropriate the funds into the identified CIP account (600,6000,RO,229) from a CIP revenue account (600,3692) to fund this Agreement and any future work on the site pursuant to the Purchase and Sale Agreement. It is anticipated that all necessary remediation work can be completed within the $500,000 deposit amount. Proposals were solicited for the work from five environmental consulting firms, all of which maintain a statement of qualifications on file with the City. Because of the highly variable nature of environmental consulting services such as these, staff requested that the consultants submit their most creative approach to solving the contamination problems on the site, without prescribing a specific limited approach. Four firms responded to the request: Ogden Environmental and Energy Services, SECOR, BFGW Group, and Woodward Clyde. The consultant responses are outlined in the following table: t Approach Cost Remarks Woodward-Clyde Perform additional sampling to $25,000 Requires additional work for further characterize the extent reclassification as non, and volume of impacted soils hazardous waste and subsequent soil disposal Secor Perform limited soil sampling to $4,500 Options for disposition of better estimate soil volumes soils would depend on the outcome of volume confirmation Ogden Treat soils for disposal as $220,000 Disposal as hazardous waste municipal waste .!!I dispose of is prohibitively expensive; soils as hazardous waste treatment prior to disposal as municipal waste may not be necessary BFGW Group Obtain waiver from regulatory $130,000 Disposal as municipal waste agencies for disposal as proposed pursuant to a municipal waste without further waiver from regulatory treatment agencies After review of the remedial approach of each of the firms and evaluation of relative costs by a staff selection committee consisting of the Community Oevelopment Director, the Assistant Community Oevelopment Director and the Environmental Projects Manager, BFGW Group was determined to have ..3 -3 --.. 1 .'. Page 4, Item ..3. Meeting Date 061O2/gØ presented the most efficient means of site remediation. Selection was based primarily on the scope of work and the overall value of services, as well as a comparison of relative prices. Staff believes that the approach proposed by BFGW Group was the most cost, effective and time,efficient means to reaching closure of the site, and therefore, determined BFGW to have submitted the best overall bid. Two of the firms, SECOR and Woodward Clyde proposed to conduct additional sampling to verify the extent of contamination, at costs of $4,500 and $25,000, respectively. Ultimate disposal costs for these two firms would depend on their ultimate disposal strategies which would be developed after the supplemental soil testing. Staff believes that additional sampling followed by remediation may take more time than is available under the Agency's Agreement with the Port, and may not be necessary based on what is already known about the site. Ogden and BFGW provided proposals that included regulatory approval for contaminated soil removal at costs of $220,000 and $130,000, respectively. The reason for the difference in price is largely related to the proposed characterization of the waste and its ultimate disposition. Ogden's approach offered two options, costly disposal as hazardous waste or chemical fixation of the soil and disposal as municipal waste. BFGW Group proposes to seek a variance for management of the waste as non,hazardous. This would dramatically reduce disposal costs without physically treating the soil. BFGW has demonstrated the effectiveness of this approach on large scale projects that were similarly impacted, including the North Chollas Burn Ash site. FISCAL IMPACT: The cost of the proposed services is $130,000. Funds were received from the escrow account in the amount of $500,000 and placed into a holding account, CIP revenue account #600-3692. These funds must now be appropriated into an identified CIP account (600,6000,RO-229). Additional costs for site remediation are not easily estimated until demolition of the parking lot and loading docks is completed. However, it is not anticipated that the total costs for cleanup would exceed the $500,000 amount. At close of escrow, assuming the cleanup costs consume the entire $500,000 amount, the Agency would net approximately $481,000 from sale of the property (less normal escrow/closing costs). This is an estimate which presumes no exceptional cleanup or demolition costs. Since the final costs cannot be determined until these activities are underway, there is no way to guarantee that final expenses to clear the site will fall within the deposit amount. Finally, if the Agency is unable to satisfy all of the conditions of escrow as described in this report and the sale is not completed, the Agency will have to reimburse all of the funds drawn down from the deposit account, plus interest, to the Port. However, the Purchase and Sale Agreement provides an alternate method of repaying the funds, in the form of a reduction in the Port CIP funds approved for the City by the amount owed. Although this would result in a reduction of Port CIP projects for the City, the Agency would still retain ownership of the Shangri,la property which will be clean and have greater value for eventual resale for redevelopment purposes, should the Agency so desire. The property could also be developed for park or other public use. IJMI H:IHOMEICOMMOEV\STAFF.REPIO6-01.98ISHANGRLA (May 17. 1998 11:41!pmll .3-cJ RESOLUTION NO. / s'2 4 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A TWO-PARTY AGREEMENT FOR SOIL REMEDIATION CONSULTING SERVICES BETWEEN THE REDEVELOPMENT AGENCY AND BFGW GROUP, LLC, FOR THE PURPOSES OF REMOVING CONTAMINATED SOILS FROM THE AGENCY-OWNED PROPERTY LOCATED AT 980 LAGOON DRIVE, AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE SAME, AND APPROPRIATING FUNDS INTO CIP RD-229 FOR SITE WORK RELATED TO PENDING SALE TO THE PORT DISTRICT WHEREAS, the City Council and Redevelopment Agency approved Council Resolution 18690 and Agency Resolution 1543, approving an Agreement for Purchase and Sale between the City of Chula Vista and the San Diego Unified Port District for the Sale of 980 Lagoon Drive; and WHEREAS, said Agreement contains specific provisions for the remediation of known contamination on the site; and WHEREAS, the Port has advanced funds in the amount of $500,000 through escrow for the Agency to use for the purposes of site remediation; and WHEREAS, remediation of contamination on the property requires the services of a professional consultant, as staff has neither the expertise or appropriate resources to conduct the cleanup; and WHEREAS, in accordance with City purchasing requirements, consultant services were solicited, and the consultant determined to be best suited for the work, BFGW Group, LLC. (Consultant), was selected to perform the required remediation services; and WHEREAS, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to the Agency all in accordance with the terms and conditions of the attached Agreement; and WHEREAS, funds received by the Port for the purposes of affecting site remediation need to be appropriated into a CIP account for the purposes of funding the consultant services NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista does hereby: 1) Approve the attached Two-Party Agreement for Soil Remediation Consulting Services between the Redevelopment Agency and BFGW Group, LLC 2) Authorize the Executive Director to execute same, and 3) Appropriate funds in the amount of $500,000 from the CIP Revenue Account #600-3692 into CIP Account #600-6000-RD-229 for the purposes of funding the BFGW consulting services agreement, and other estimated costs for site work needed to sell the property to the Port District Presented by Approved as to form by ~. ~ ~' ~-----. , "- ~--h:--->z--: '~'r::-=--?~,,-.:.---,. iofÍn M. Kaheny / - " .'" C , Director of Community Development gency Attor~ey: [lJM) H.,HOM"COMMOEV,RESOS\SHANGRLA IM,V 27, 199813.26pmIJ ~-s: Agreement between City of Chula Vista and BFGW Group, LLC for Environmental Consulting Services Related to Remediation of Property Located at 980 Lagoon Drive This agreement ("Agreement"), dated June 2, 1998 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and BFGW Group, LLC, the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals WHEREAS, the City Council and Redevelopment Agency approved Council Resolution 18690 and Agency Resolution 1543, approving an Agreement for Purchase and Sale between the City of Chula Vista and the San Diego Unified Port District for the Sale of 980 Lagoon Drive; and WHEREAS, said Agreement contains specific provisions for the remediation of known contamination on the site; and WHEREAS, remediation of contamination on the property requires the services of a professional consultant, as staff has neither the expertise or appropriate resources to conduct the cleanup; and WHEREAS, in accordance with City purchasing requirements, consultant services were solicited, and the consultant determined to be best suited for the work, BFGW Group, LLC. (Consul tant) , was selected to perform the required remediation services; and WHEREAS, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; ~ NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. J-7 _.. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liabili ty Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Pr),mary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Securitv for Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by J-? -. co a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credi t "), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a let ter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. 1. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. ¿:;-9 B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). J-(O --. -- - - _.-. Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant ....3 - (( learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subj ect matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest" ), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontrac- tors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's indemnification shall in- clude any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defend- ing against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. ..3 - (.;;¿ 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". ...3 -13 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. ~ -I <j 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to recover all reasonable costs incurred in the defense of the claim, including costs and attorney's fees. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. J -(S- E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capaci ty and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [SIGNATURE PAGE FOLLOWS] ~-(~ -"> .. ..- I1AV-27-98 WED 15:49 COI1IIUNITV DEVELOPItENT FAX NO. 8194785310 P,13 Signature Page to Agreement èetween City of Chul.. Vista and BPGW Group, LLC for Environmental Consulting servieea Rølat8d to Rðmodi..tion of p~operty Located at ~80 Lagoon Drive IN WITNESS WHEREOF, City and Consultant have executed thi. Agreement thereby indicating that they have read and underetood eame, and indicate their full and eomp¡ete consent to its terms: Dated. . 19- City of Chula Vieta by' David D. Rowlands, Jr. Executive Director Approved as to form: John M. Kaheny, City Attort1ey Dated: BFGW Group. LLC Exhibit List to Agreement eX) Bxhibit A. ~-(7 tOOd L66t-C:EC:-fH9 ÅNVdWO~ a'VMN33~~ 3Hi dC:O:C:O a6-ac:-^~w -". - - - -'. Exhibit A to Agreement between City of Chula Vista and BFGW Group, LLC for Environmental Consulting Services Related to Remediation of Property Located at 980 Lagoon Drive 1. Effective Date of Agreement: June 2, 1998 2. City-Related Entity: (X) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: BFGW Group, LLC 5. Business Form of Consultant: (X) Limited Liability Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 1420 Kettner Boulevard, Suite 710 San Diego, CA 92101 Voice Phone (619) 338-8100 Fax Phone (619) 232-1907 7. General Duties: Consultant shall coordinate with the appropriate regulatory agencies, prepare necessary plans, and arrange for disposal of approximately 500 cubic yards of lead contaminated soils located on the site at 980 Lagoon Drive. In the event that the actual quantity of soils to be removed is less than 500 cubic yards, the contract amount will be reduced at a rate of $80 per ton. If quantities are greater, an amendment to this agreement will be pursued. ~-(? 8. Scope of Work and Schedule: A. Detailed Scope of Work: Consultant shall prepare a Remedial Work Plan and submit the Plan to the County of San Diego Department of Environmental Health, Site Assessment and Mitigation Division (SAM) for their approval. Consultant shall provide the necessary coordination with SAM for approval of the Plan. Consultant shall coordinate with the Regional Water Quality Control Board to gain approval for disposal in the appropriate facility. Consultant shall negotiate a cleanup goal for each contaminant based on the Preliminary Remedial Goals published by the U.S. EPA, and as approved by the SAM. Consultant shall be responsible for obtaining a variance for management of the waste as non-hazardous waste from the state Department of Toxic Substances Control (DTSC) , including preparing and filing applications and coordinating with DTSC staff. Consultant will not be responsible for paying application fees. Consultant shall be responsible for obtaining a variance for disposal of the waste as non-hazardous waste from the RWQCB, including preparing and filing applications and coordinating with RWQCB staff. Consultant will not be responsible for paying application fees. Consultant shall be responsible for coordination with all appropriate regulatory agencies, as required, for all project-related approvals. Consultant shall arrange for removal and disposal of contaminated soils, after appropriate approvals have been secured. Consultant shall prepare a closure report which summarizes the remedial activity, and characterizes the site after remediation. Consultant shall also be responsible for obtaining a closure letter from the SAM regarding the project. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement C. Dates or Time Limits for Delivery of Deliverables: Deliverable No. 1: Documentation of Remedial Work Plan approved by City and SAM -1- (q Deliverable No. 2: Written approval by DTSC and RWQCB of management and disposal variances, respectively Deliverable No. 3: Closure Report, in a form accepted by the City which demonstrates remediation completion in compliance with approved Remedial Work Plan Deliverable No. 4: Closure Letter from the SAM D. Date for completion of all Consultant services: October 31, 1998 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). (X) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: All reports and data pertaining to contamination on the site 11. Compensation: A. (X) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $130,000, payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee Execution of Agreement $13,000 City Approval of Deliverable No. 1 $10,000 City Approval of Deliverable No. 2 $30,000 City Approval of Deliverable No. 3 $66,000 City Approval of Deliverable No. 4 $13,000 (X) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase ~ -:20 has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (X) None, the compensation includes all costs. 13. Contract Administrators: City: Joseph Monaco, AICP Consultant: John Walton, Ph.D. 14. Liquidated Damages Rate: N/A 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. 16. Consultant is Real Estate Broker and/or Salesman: N/A 17. Permitted Subconsultants: ~-~( As approved by City contract administrator 18. Bill Processing: A. Consultant's Billing to be submitted for the following period of time: (X) Monthly B. Day of the Period for submission of Consultant's Billing: (X) First of the Month C. City's Account Number: CIP RD-229 19. Security for Performance Interim Monthly Advances (see 11. A. 1) ~-;;¿~ REDEVELOPMENT AGENCY AGENDA STATEMENT Item A Meeting Date 6/2/98 ITEM TITLE: Resolution /S¿?S- Rejecting bids for the "Sewer P-trap at 850 Lagoon Drive in the City of Chula Vista, California (RD-220)" project, and directing staff to re-advertise the project. SUBMITTED BY: Director of Public Works¡)! ~ REVIEWED BY: Executive DirectoTDR ~ ~ (4/5ths Vote: Yes_NoX) On February 18, 1998, the Director of Public Works received sealed bids for the construction of a sewer p-trap at 850 Lagoon Drive. The work includes excavation and grading, installation ofPVC sewer pipe and fittings, traffic control, and other work relative to the project. Unfortunately, after the bids were received, it was detennined that the funding source is defined as redevelopment agency funds and requires the City to pay prevailing wages. Therefore, the bids we received are invalid and staff requests the Redevelopment Agency to fonnally reject these bids and authorize the re- advertising of the project. RECOMMENDATION: That Agency reject bids and direct staff to re-advertise the "Sewer P-trap at 850 Lagoon Drive" project. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The source of funding for this project is from the retention of reimbursement funds originally set aside for Rohr, Inc. (Rohr). In 1996, the Redevelopment Agency set aside funds for reimbursement for work related to the construction of a number of public improvements. A sewer monitoring facility, at 850 Lagoon Drive, was included. After the facility was installed, an odor problem developed. Rohr and city staff worked together to solve the problem, but, to no avail. Installing of a sewer p-trap appears to be the solution, which will cost about $30,000. The $30,000 were retained from the reimbursable to Rohr. Since the Agency provided the initial funding, it has been detennined that the retention funds must be considered public funds and any contracts financed by those funds must meet the prevailing wage requirements. Staff originally thought that since Rohr was paying for the project, public funds would not be involved and the contract could be awarded on the basis of non-prevailing wage. Therefore, the project was bid without the prevailing wage requirements which constitutes a significant modification to the advertising process. Staff recommends that the current bids be rejected and the project be re-advertised according to prevailing wage requirements. 4 - / _.. .. ,. - Page 2, Item ~ Meeting Date ~ The two bids received were: Contractor Bid Amount 1. Roberts Engineering Contractors - Escondido, California $22,700.00 2. Gypsy Queen, Inc. - National City, California $24,900,00 If the Agency accepts staffs recommendation, letters of rejection will be sent to both bidders with a notice of the re-advertising process. FISCAL IMPACT: The re-advertisement of the project is estimated to cost about $300. We anticipate the new bids to be in the same range ($23,000 to $25,000) as the ones we recommend rejecting. Sufficient funds are available in CIP account RD-220 ITom the $30,000 retention to cover both the re-advertisement expense and the construction cost. H:IHOMEIENG INEERIDESIGNIRD220REJ .SOL 4-J- -" -r " - -l RESOLUTION NO. /,~-g~ RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA REJECTING BIDS FOR "SEWER P-TRAP AT 850 LAGOON DRIVE IN THE CITY OF CHULA VISTA, CALIFORNIA (RD-220) " PROJECT, AND DIRECTING STAFF TO RE-ADVERTISE THE PROJECT WHEREAS, at 2:00 p.m. on February 18,1998, in Conference Room 1 in the Public Services Building, the Director of Public Works received the following two sealed bids for "Sewer P-trap at 850 Lagoon Drive in the city of Chula Vista, California (RD-220): Contractor Bid Amount 1. Roberts Engineering Contractors - Escondido, California $22,700.00 2. Gypsy Queen, Inc. - National City, California $24,900.00 WHEREAS, after the bids were received, it was determined that the funding source is defined as Redevelopment Agency funds and requires the City to pay prevailing wages; and WHEREAS, therefore, the bids we received are invalid and staff requests the Redevelopment Agency to formally reject these bids and authorize the re-advertising of the project. NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the city of Chula vista does hereby reject bids for the "Sewer P-trap at 850 Lagoon Drive in the City of Chula Vista, California (RD-220)". BE IT FURTHER RESOLVED that staff is directed to re- advertise the "Sewer P-trap at 850 Lagoon Drive" project. Presented by Approved as to form by John P. Lippitt, Director of orney Public Works c: \rB\lagoon. 850 4-3 --. ,. .. - --.,