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1980-0818_SERRA_Operations & Maint. AgrRAR: fs 8/5/80 OPERATIONS AND MAINTENANCE AGREEMENT FOR SERRA WASTEWATER TREATMENT PLANT 'THIS AG EMENNTT is ss-made and entered into this day ofI Pte, 1980, by and between the SOUTH EAST REGIONAL LAMATION AUTHORITY, a joint powers agency of the State of California, hereinafter referred to as "SERRA", and Sanitation and Operation Consultants, Inc., hereinafter referred to as "Contractor." W I T N E S S E T H: WHEREAS, SERRA is the owner of the J.B. Latham Regional Wastewater Treatment Plant ("Treatment Plant") which is located at 34152 Del Obispo, in Dana Point, California; and WHEREAS, the operation and maintenance of the Treat- ment Plant is presently contracted to the City of San Juan Capistrano pursuant to an agreement entitled "OPERATIONS AND MAINTENANCE AGREEMENT FOR SERRA WASTEWATER TREATMENT PLANT," dated January 11, 1979, which Agreement expires August 31, 1980; and WHEREAS, SERRA desires to enter into a new agreement to retain an operator to operate and maintain the Treatment Plant and related facilities; and WHEREAS, Contractor warrants that it has the ability and the personnel necessary to operate said Treatment Plant and related facilities in accordance with all federal, State and local laws and regulations and in accordance with generally accepted practices for such operation; and WHEREAS, Contractor is agreeable to entering into a contract for such purposes; NOW, THEREFORE, the parties hereby agree as follows: 1. General Statement of Agreement. During the term of this Agreement, Contractor shall operate and maintain the Treatment Plant of SERRA in accordance with sound operating procedures at all times, in accordance with generally accepted practices for wastewater treatment plants, and shall comply with all federal, State, and local laws and regulations. The work to be done pursuant to this contract shall include the furnishing of all labor, materials, and services other than as specifically exempted, to operate and maintain the Treatment Plant of SERRA according to CAL -OSHA standards and in compliance with the regulations of the State Water Resouces Control Board and the Regional Water Quality Control Board, San Diego Region, and in accordance with the existing NPDES Permit of SERRA, as such NPDES Permit may be modified in the future and any new NPDES Permit which may be obtained by SERRA. Should the Contractor not meet the discharge require- ments due to his negligence, the Contractor shall assume any fines levied against SERRA by any local, state or federal govern- mental or regulatory agency for this reason. SERRA shall have -2- 'r. the right to deduct from the Contractor's compensation the amount levied by the State for this purpose. The operation and maintenance of the Treatment Plant shall include operation and maintenance of the pumping facilities located within the boundaries of the Treatment Plant and the operation and maintenance of the sampling and metering station to be located within the boundaries of Doheny State Beach, which has been constructed as a part of the con- tract to construct the new Ocean Outfall of SERRA. The services provided include effluent monitoring and necessary laboratory reports and the sampling and monitoring station. They do in- clude receiving water monitoring. 2. Term. i The services provided by this Agreement shall commence on the 1st day of September, 1980, and shall terminate on the 31st day of August, 1983, unless terminated earlier in accordance with the Agreement. 3. Compensation. SERRA shall pay Contractor monthly for the services to be performed, payable on or before the 20th day of the month following the month in which the services are rendered. Separate payments shall be made for the following services, as follows: -3- a. Operation and maintenance of Treatment Plant: $87,583.00 per month. b. operation and maintenance of effluent pump station: $3,750.00 per month. C. Operation and maintenance of sampling and metering station: $450.00 per month. d. Performance of required ocean monitoring program: $3,300.00 per month. The amounts set forth above shall be increased or decreased semi-annually for services rendered on and after January 1, 1981, according to the following U.S. Department of Labor, Bureau of Labor Statistics index: Consumer Price Index for All Urban Consumers (CPI -U) Los Angeles -Long Beach - Anaheim, California. The increase or decrease effective January 1, 1981, shall be based on the Bureau of Labor Statistics Index, as pro- vided above, between July 1, 1980, and January 1, 1981. Each subsequent increase or decrease in compensation shall be ef- fective each July 1st and January 1st and shall be based on the prior six month change in the Index. The percentage change in compensation shall be applied to the previous month's com- pensation to determine the amount of increase or decrease. Capital costs in excess of $750 required to main- tain the facilities according to CAL -OSHA standards shall be borne by SERRA. -4- In the event that the NPDES Permit is revised during the period of this Agreement and such revision will result in additional costs to Contractor, SERRA and Contractor shall endeavor to reach an agreement as to the payment of such additional costs. In the event that an agreement cannot be reached, either party may resort to arbitration to determine the appropriate increase in payment pursuant to Section 27 of this Agreement. Payments to Contractor for other than fixed monthly fees shall be paid by SERRA within 45 days after billing. 4. Scope of Services. Contractor shall control, maintain, and operate SERRA's plants and facilities so that effluent discharged therefrom meets the existing and present requirements of all governmental regulatory agencies, including, but not limited to, the Regional Water Quality Control Board, San Diego Region, and the State Department of Health, and to provide that the effluent shall comply with the NPDES Permit of SERRA which is in effect at the time, both existing and as may be changed. All operations conducted at the SERRA Treatment Plant, including the effluent pumping station, and the sampling and metering station con- structed within the boundaries of the Doheny State Beach, are included within the scope of this work. Routine maintenance will be provided for all equipment and pump stations during the period of this Agreement, and contractor shall pay for repair -5- of parts necessary during the term of his services; pro- vided, however, the aggregate amount which the Contractor shall be required to pay shall not exceed $5,000 for each piece of equipment. In the event that an item of repair exceeds that amount, SERRA shall pay the excess of such amount exceeding $$,000. Contractor shall receive approval from the Board of Directors of SERRA, acting on behalf of Project Committee No. 2, to provide for such repairs or pur- chases exceeding $5,000. Competitive bids shall be obtained, unless the Board of Directors of SERRA waives the requirement for such bids. Notwithstanding this paragraph, Contractor shall have the right to take the necessary action in emergencies to protect life and property in the event that the Board of Direc- tors of SERRA or its designee is not immediately available. "Equipment" is defined to include all of the "wire to water" components of any mechanical function hardware. For example, an item of equipment such as a positive displacement pump would include the electrical starter, motor, pump shaft, impeller or piston and enclosure. Contractor shall not be liable to SERRA for any physical damage caused to any physical part of the system or for any monetary damage if such physical or monetary damage is caused by earthquake, flood, fire, explosion, riot, revolution, civil disturbance, war, other Acts of God, or other causes QS beyond the control of Contractor, except, however, Contractor shall be liable to SERRA for any damage resulting from negligence of Contractor, its agents and employees. Contractor shall work closely with the Board of Directors of SERRA and its Designee acting on behalf of the Member Agencies of SERRA's Project Committee No. 2. Contractor shall further prepare and present to SERRA a preventive maintenance program for operation of the Treatment Plant. In this regard, a preventive maintenance program means a pro- gram to perform all tasks required to maintain the entire Treatment Plant in good working order and appearance, including, but not limited to, the maintenance of. all mechanical and electrical equipment, valves and piping, painting or protective - covered surfaces, landscaping, buildings, structures and all other related appurtenances. Preventive maintenance includes, but is not limited to, the.performance of all maintenance (other than "major maintenance" as defined below) required or recom- mended in the "Operations and Maintenance Manual" for the faci- lity prepared by Contractor and the manufacturer's operating or maintenance instructions and manuals for the machinery and equipment installed or used at the facility. 5. Expenses. Contractor shall pay all expenses incurred in Treatment Plant operations, including wages, salaries, -7- consumables, and lubricants, as well as the cost of water, natural gas, telephone and electricity. 6. Staffing. Contractor will staff the facilities with full- time employees experienced in wastewater treatment process control and maintenance procedures, and who are properly certified to perform the duties required of them by the State Water Resources Control Board pursuant to the authority contained in Chapter 9, Division 7, of the California Water Code. 7. Discrimination. Contractor agrees that no person shall be excluded from employment in the performance of this Agreerment on the grounds of race, creed, color, sex, age, or national origin. In this connection, Contractor agrees to comply with all applicable State and Federal laws relating to equal employment opportunity rights. 8. Hours of Staffing. Contractor agrees to staff the Plant for twenty-four hours per day, for every day, including Sundays and holidays. 9. SERRA Board Meetings. Contractor's manager shall attend all SERRA monthly Board meetings. Such manager shall present to the Board of Directors of SERRA a report and shall be prepared to answer questions presented by SERRA Board members and SERRA's staff . 10. Sludge Disposal. SERRA shall either assume the existing agreement between Golden West Fertilizer Company and the City of San Juan Capistrano, dated May 17, 1979, which is attached here- to as Exhibit "A", or shall make independent arrangements for disposal of sludge produced at the Treatment Plant. SERRA shall be responsible for payment for sludge hauling and dis- posal. Contractor shall be responsible for coordinating sludge removal operations at the Treatment Plant site in an efficient manner as determined by the Board of Directors of SERRA or its designee. 11. Guarantees, Licenses, and Contracts SERRA shall maintain all existing warranties, guarantees, and licenses that have been granted for the benefit of the Contractor; provided, however, that if any liability is incurred because Contractor did not maintain such equipment in accordance with such warranties, guarantees, and licenses, such liability shall be borne by Contractor. 12. Inventory. Contractor shall take possession of the hand tools, and of the laboratory equipment, as set forth in Exhibit "B" copies of which are attached hereo, and shall maintain same in good repair during the period of this contract. An inventory shall further be pre- pared of all materials and any other equipment and tools at the Treatment Plant which are to be used by Contractor. An inventory shall be prepared prior to commencement of operations by Contractor, and representatives of Contractor and SERRA shall approve such inventory. At time of termination of con- tract, another inventory shall be taken, and all such items listed on the inventory at the time of commencement of contract shall be furnished SERRA, or Contractor shall pay to SERRA the replacement cost of any missing items. During the term of this Agreement Contractor shall be responsible for replacing any lost or stolen items and shall carry theft insurance naming SERRA as an additional insured. All crimes, theft vandalism and hazards of any items shall be reported immediately upon discovery to the applicable law enforcement authorities and to such persons as SERRA may from time to time designate and shall thereafter be reported to the Board of Directors of SERRA at its next Regularly Scheduled Meeting. 13. Vehicles. Contractor shall supply all vehicles it deems neces- sary to perform this Agreement and Contractor hereby assumes all liability in connection with the operation of any suc vehicles. -10- 14. Preparation of Reports. Contractor shall prepare and keep proper maintenance and laboratory records and shall submit all required reports to all regulatory agencies, including, but not limited to, the Regional Water Quality Control Board, San Diego Region, and the Department of Health shall be furnished SERRA. Copies of all such reports 15. Changes in Compensation. The parties agree that the compensation provided for in the contract shall be for the operation and main- tenance of the Treatment Plant at the existing wastewater flow and characteristics. In the event that there is a ten percent increase or decrease in flow or total solids in any six month period, from July 1 through December 31 or from January 1 through June 30, either party may give notice to the other of its desire to renegotiate the appropriate compensation. In the event that the appropriate compensation cannot be agreed upon, either party may resort to arbitration pursuant to Section 27 of this Agreement, to determine the approp- riate compensation. It is agreed that the present rate of flow is seven million seven hundred thousand (7.7 MGD) U.S. gallons per day based upon a 30 day average, and the rate of total solids handled is currently thirty thousand one hundred nineteen (30,119) pounds of total dry solids per day. -11- Total solids are calculated as follows: Total Solids = BOD Solids + Suspended Solids BOD Solids = (30 day average daily plant influent BOD mg/1) x (0.5 lbs. of solids per lb. of influent BOD) x (30 day average influent flow in million gallons per day) x (8.34 lbs. per gallon) Suspended Solids = (30 day average influent suspended solids mg/1) x (30 day average influent flow in million gallons per day) x (8.34 lbs. per gallon) 16. Audits of Regulatory Agencies. Contractor shall use the SERRA Plant ana its equip- ment for the satisfactory performance of the work provided for in this Agreement. Changes in Treatment Plant operation and reporting requirements by other governmental agencies shall be referred to SERRA for approval before complying with such changes and reporting requirements. 17. Taxes. Contractor, by virtue of this Agreement, is not given possession of the Treatment Plant, but instead is agree- ing for compensation to operate and maintain said Plant. No possessory interest in the properties is given to Contractor by virtue of this Agreement. However, in the event that it -12- is subsequently determined that the entering into of this Agreement subjects Contractor to property taxes by reason of a property interest created by virtue of said Agreement, Con- tractor acknowledges that he is aware of Section 107.6 of the Revenue and Taxation Code and agrees to pay any taxes levied by reason of any possessory interest created by virtue of this Agreement. 18. Insurance Coverage by Contractor. Contractor shall, during the period of this Agree- ment, maintain the following insurance in addition to insurance otherwise required by this Agreement: a. Comprehensive General Liability Insurance: Contractor shall have coverage in the amount of not less than $5,000,000 single limit for any one occurrence. The coverage shall provide for both bodily injury and property damage. The coverage shall include coverage for injury, sick- ness, disease, death, or property damage occurring in connection with the work of Contractor under this Contract. The comprehensive liability insurance shall be subject to the approval of SERRA as to form and shall include as additional named in- sureds SERRA, the Member Agencies of SERRA (to wit, Dana Point Sanitary District, Capistrano Beach Sanitary District, Santa Margarita Water District, Moulton -Niguel Water District, -13- City of San Juan Capistrano, and City of San Clemente), and officers, agents, employees and consultants of SERRA. b. Workers' Compensation: Contractor shall maintain during the life of this Agreement Workers' Compensation Insurance for all its employees upon the site of the SERRA Treatment Plant. In the event that any work is sublet, Contractor shall require any subcontractor to annually provide for Workers' Compensation Insurance. Contractor shall indemnify SERRA, the Member Agencies of SERRA (to wit, Dana Point Sanitary District, Capistrano Beach Sani- tary District, Santa Margarita Water District, Moulton -Niguel Water District, City of San Juan Capistrano, and City of San Clemente), and officers, agents, employees and consultants of SERRA for any damages resulting from the failure of Contractor or any subcontractor to maintain such Workers' Compensation Insurance. C. Proof of Carriage of Insurance: Contractor shall provide SERRA satisfactory proof of the insurance required by this Agreement, and any and all policies shall require the insurance carrier to give SERRA at least 30 days prior notice of the cancellation of any policy during the effective period of this Agreement. -14- 19. Insurance Coverage by SERRA. SERRA shall take out and maintain, during the term of this Agreement, standard fire insurance policies and ex- tended coverage, coverage against vandalism, flood insurance, and boiler machinery insurance, covering the property and equipment which are the subject of this Agreement. The boiler machinery policy coverage shall be in the amount of $500,000 for each object, and the blanket buildings and equipment coverage shall be in an amount to be determined by SERRA, based on a statement of value, providing for all risk 80% co- insurance, $5,000 deductible. The Contractor shall be named as a co-insured on such policies. Contractor shall have no liability to SERRA with respect to loss, damage, and des- truction, to the extent that SERRA is covered by such policies. for loss, damage, and destruction. 20. Faithful Performance. Prior to the date of execution of this Agreement by SERRA, Contractor shall provide a Faithful Performance Bond in a form approved by SERRA, in an amount equal to the com- pensation payable for three months. The Faithful Performance Bond shall guarantee performance of all services of the con- tract, including the condition of the Plant and the return of equipment upon termination. Said Faithful Performance Bond -15- shall remain in effect during the entire period of this Agreement. 21. Termination. This Agreement may be terminated by either party upon 90 days' written notice to the other party. If the Agreement is terminated by Contractor, Contractor agrees that it shall make available upon request of SERRA the ser- vices of a qualified superintendent of the Treatment Plant for a period not to exceed 90 days after the termination date. In the event that the services of a superintendent are furnished SERRA, SERRA shall pay to Contractor for such services the salary plus normal fringe benefits of such superintendent, plus $125 per day during the period of such services. Termina- tions of contract pursuant to this section shall not be subject to arbitration. Contractor is aware that SERRA has prepared a contingency plan whereby personnel employed by its Member Agencies have the capacity to operate said Plant in the event that this contract is terminated. 22. Relationship. It is agreed that the relationship of Contractor to SERRA is that of an independent contractor,and that in no event shall Contractor or its employees be deemed to be employees of SERRA. -16- 23. Inspection of Premises. SERRA, its officers, employees, agents, and consultants, shall have access to Plant facilities at all times. 24. Public Relations. Public relations are an important aspect of Plant operations. The Contractor shall be sensitive to community feelings and respond in this area as is requested by the SERRA Board of Directors. Contractor further agrees, at the request of SERRA, to allow public tours of the facilities in a reasonable and safe manner, at times when such tours shall not interfere with Plant operation. 25. Maintenance of Grounds. Contractor shall at all times maintain the grounds of the Treatment Plant, including the existing vegetation, in an aesthetic and tidy manner. 26. Assignment. Contractor may not assign any rights or duties under this Agreement without the prior written consent of SERRA. 27. Arbitration. Any controversy or claim between the parties to this Agreement, including but not by way of limitation, any claims, disputes, demands, differences, controversies, -17- or misunderstandings arising under, out of, or in relation to this contract, or any alleged breach thereof, shall be submitted to and determined by arbitration. To the extent not inconsistent herewith, the rules of the American Arbitra- tion Association shall apply. The party desiring to initiate arbitration shall give notice of its intention to arbitrate to the other party to this Agreement. Such notice shall designate such other parties, if any, as the initiating party intends to have bound by any award made therein. Within twenty (20) days of the service of the initial demand for arbitration, the American Arbitration Association, hereinafter referred to as "AAA," shall submit simultaneously to the initiating party and to all parties, if any, named as respondents or filing a response therein, an identical list of names of persons chosen from the AAA National Panel of Arbitrators, which persons shall be, to the extent possible, persons first in the field of wastewater disposal and reclamation or in the alternative, public law. Each party to the dispute shall have seven (7) consecutive calendar days from the mailing date in which to cross off any names to which he objects, number the remaining names indicating the order of his preference and return the list to the AAA. If a party does not return the list within the time specified, all persons named therein shall be deemed acceptable. From among the persons who have been approved on both lists, in accordance with the designated order of mutual preference, Dim the AAA shall invite the acceptance of an arbitration panel consisting of three persons from those designated, or if for any reason an acceptable panel of three arbitrators is unable to act, or if for any other reason the appointment cannot be made from the submitted list, the AAA shall have the power to make the appointment of the panel of three arbitrators from other members of the list originally submitted, without the submission of any additional list. The panel of arbitrators shall determine the rights of the parties in accordance with the law, and the award shall be subject to review as to the panel's applica- tion of the law by any court having jurisdiction thereof, whether or not any mistake of the law shall appear upon the face of the award. As to all questions of fact, however, the determination of the arbitrators shall be binding upon all parties and shall be final. Any party shall be entitled to written findings of fact and conclusions of law as to all issues determined by the award. Subject to the above limitations, the award shall be binding upon all parties to the arbitration and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. The arbitrators may, in their discretion, as part of the arbitration award, impose upon any one party or allocate -19- among two or more of the parties, the liability for the arbitration fees and expenses. Such allocable fees may include the initial administration fees, fees for second and subsequent hearings, postponement fees, and overtime fees. Allocable expenses may include the expenses of producing witnesses, the cost of stenographic records, the cost of any transcripts, travel expenses of the arbitrators and Tribunal Administrator, the expenses of any witnesses, the cost of any proofs produced at the direct request of the arbitrators, and any other expenses relating directly to the arbitration. In the event of the failure of the arbitrators to provide for the allocation of such fees and expenses, the arbitration fees shall be divided equally between the parties and the expenses shall be borne by the party incurring them. 28. Attorneys' Fees. In the event an action is commenced by any party to this Agreement to enforce or construe its rights or obligations arising from this Agreement, the prevailing party in such action, in addition to any other relief and recovery awarded by the Court, shall be entitled to recover all statutory costs plus a reasonable amount for attorneys' fees. 29. Notice. Any notice provided for herein shall be given in writing and transmitted by personal delivery or prepaid first class mail, addressed as follows: -20- SERRA: Ray Maddocks, Interim Secretary (or as otherwise designated) South East Regional Reclamation Authority P.O. Box 967 San Juan Capistrano,.Ca. CONTRACTOR: Sanitation and Operation Consultants, Inc. 31133 W. Via Colinas Suite 101 Westlake Village, Ca. 91361 Attn: Mr. Lloyd Hedenland IN WITNESS WHEREOF, the parties have executed this Agreement on the date first hereinabove written. SOUTH EST �IONAL RECLAMATION AUTHORITX By _ /Chairman Secretary SANIT ON AND ERATION CONSULTANTS, I'I(;- LM -21- rA r CONTRACT FOR SLUDGE REMOVAL THIS AGREEMENT, made and entered into this 17th day of May, 1979, by and between GOLDEN WEST FERTILIZER COMPANY, here- inafter referred to as "Contractor" and the CITY OF SAN JUAN CAPISTRANO, hereinafter referred to as "City." W I T N E S S E T H: WHEREAS, this agreement supersedes a previous document dated October 19, 1977, by and between the City and Contractor for sludge removal services; and WHEREAS, SERRA Wastewater Treatment Plant produces a by- product in the treatment and disposal of sewage which consists of dewatered sludge containing approximately 30% solids, hereinafter referred to as "sludge"; and WHEREAS, the aforesaid sludge is waste material which must be removed by the City from SERRA'S sewage treatment plant -and premises; WHEREAS, Contractor is able to remove and dispose and/or make commercial use of the sludge. NOW, THEREFORE, in consideration of the premises and of the mutual agreements hereinafter set forth, Contractor and City agree as follows: 7. Contractor's Obligations:. Contractor shall: A. Upon notification from City's Director of Public Works and continuing on a month-to-month basis thereafter, receive and remove all sludge from the SERRA sewage treatment facilities as such sludge is produced. B. Provide such trucks and trailers, hereinafter col- lectively referred to as "equipment" as may be necessary to receive and remove the sludge, pursuant to such standards as may be required by the City, SERRA or other governmental agency. C. Keep and maintain said equipment in a neat and clean condition and in good repair at all times, and provide competent employees to operate the equipment and to other- w.i r.r porfoi m the obligations heroin contained. D. Provide and maintain liability insurance with an instii-a )ce cumluiny approved by the City in the minimum amounts of $100,000/300,000 per accident for personal injuries and $100,000 property damage. The aforesaid insurance shall cover the entire operation of the Con- tractor and ;hall name the City and SERRA as additional insured. A copy of such policy shall, moreover, be filed with the Director of Public Works. E. Sell sludge, after processing, to any public agency within the South East Regional Reclamation Authority for the equivalent of Contractor's actual costs and overhead expenses, plus ten percent (100.) F. Conduct its operations upon SERRA's facilities in such a manner that will not interfere with the sewage treatment operations, and shall otherwise comply with all laws, ordinances and rules and regulations. 2. Payment by City: A. City shall, twice a month, after receipt of an in- voice, pay contractor the equivalent of $120.00 for each truck load of sludge as hereinafter defined, received and removed from the facilities. B. "Truckload" shall mean 17 to 21 cubic yards of sludge contained within a trailer with a capacity of 30 cubic yards at water level. Any change in this cubic yard truckload requirements shall be included by Contractor in billing the City. C. City and Contractor shall keep and maintain accurate records of the quantity of sludge received and removed by Contractor in a manner approved by the City. The aforesaid records shall be subject to audit by either party and shall be the basis for the payment as herein- above provided. 3. Effective Date and Termination: This agreement shall become effective on the date of execution, and shall continue on a month-to-month basis hereafter. It may be terminated at the end of any month by either the City or the Contractor.by giving written notice of intent to so terminate, no,later than 30 days prior to the end'of such monthly operAtion period. -2- IN WITNESS WHEREOF, the parties hereto have caused this agreement to be cotccuted by duly authorized persons on the date first above written. CITY OFSANJUAN CAPISTRANO 1• ATTEST: By JAMES S. MOCALIS, CITY MANAGER MARY ANN IIANOVEP., CITY CLERK APPROVED AS TO FORM: GOLDEN WEST FERTILIZER COMPANY By 41171S S. 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