Contract - National Plant - 2013-10-24 ADDENDUM NO. 3 TO
AGREEMENT FOR SEWER MAIN MAINTENANCE
CLEANING AND RELATED SERVICES
SERVICES FOR 2013-2014 (4TH YEAR)
This Addendum to Agreement is made this 2--4 day of 0-Tl K , 2013, by
and between the Costa Mesa Sanitary District, a sanitary district established pursuant to
Health and Safety Code Section 6400 et seq., ("District") and National Plant Services,
Inc. ("Contractor") with reference to the following facts:
RECITALS
WHEREAS, District and Contractor entered into an agreement in December
2010 ("Agreement"), providing for Contractor to perform regular line cleaning
maintenance and emergency response; and
WHEREAS, said Agreement provided for an initial term of three (3) years and
contained an option to extend the agreement for two (2) additional one-year terms; and
WHEREAS, District and Contractor entered into Addendum No. 1 on March 22,
2012, for the second year of services for the 2011-2012 fiscal year and entered into
Addendum No. 2 on November 15, 2012 for the third year of services for the 2012-2013
fiscal year and •
WHEREAS, in the 2012-2013 Addendum No. 2, District and Contractor agreed to
extend the original term of the original agreement the Additional Term of two years
(fiscal year 2013-2014 and fiscal year 2014-2015) provided in paragraph three of the
December 2010 original agreement. Said Additional Term of 2 years added to the
three-year original term results in a total term of five (5) years; and
WHEREAS, the parties are preparing to enter into the fourth year of services
under the Agreement, and Contractor and District desire to alter several terms of the
Agreement; and
NOW, THEREFORE, Contractor agrees to perform fourth-year sewer main
maintenance cleaning in accordance with the original Agreement dated December 2010
between District and Contractor and also in accordance with this Addendum No. 3 to
that Agreement:
AGREEMENT
1. Continuity in Footage Counting. District and Contractor recognize that
industry standard practice for videoing sewer mains has been revised from setting the
counter at zero feet at the center of the sewer manhole to setting the counter to zero
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feet at the beginning of the sewer main outside the manhole. Contractor shall use this
convention for all televising inside the District.
2. Contractor to Perform Root Cutting If Requested. District and
Contractor recognize root cutting may be necessary similar to prior year services. Upon
written request from District, Contractor agrees to perform rooting cutting and
Contractor will be compensated on an hourly basis for root cutting at the hourly rates
originally submitted by Contractor and adjusted for CPI increases as stated in the
original contract and as shown in this addendum.
Root cutting will be performed at the industry standard practice of utilizing a root
cutter nozzle to cut out the ball roots identified at specific locations in maps provided to
Contractor. After the ball roots are cut and Contractor has pulled back the hose,
Contractor will switch nozzles to a warthog nozzle with prover (unless prevented by
restrictions such as offset joints) and Contractor will then clean the remainder of the line
with the warthog nozzle. All roots and debris will be captured and removed from the line
after each segment is cleaned (whether or not root cutting is performed) and no debris
will be allowed to travel past the downstream manhole.
3. New Two-Year Cycle. Beginning in the 2012-2013 fiscal year, District
implemented a two-year cleaning cycle whereby all sewer mains are cleaned within a
two-year period. An estimate of the footages to be cleaned is shown below and billing
will be based on actual footages cleaned and compensated at the per foot prices shown
in the prior year and adjusted by the current CPI as shown in this addendum.
4. Shared Cleaning and Extension of Term. District and Contractor
recognize the original December 2010 Agreement contemplated District someday
performing sewer cleaning. In that regard, District has purchased a new Vac Con
sewer-cleaning vehicle (vactor) and District crews are prepared to perform sewer
cleaning during the 2013-2014 fiscal year similar to the 2012-2013 fiscal year.
District and Contractor agree to each clean the footages shown below.
Should District for any reason decide not to clean a portion or all of its share, Contractor
agrees to clean said lines upon written request from District and to have all lines
designated to Contractor cleaned no later than June 30, 2014 in order for District to
maintain the schedule outlined in District's Sewer System Management Plan (SSMP).
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Diameter ,` EIJ Footage„
6 633.15
8 303,244.39
10 13,429.85
12 11,209.59
15 29,388.27
18 17,613.96
21 7,509.35
24 2,239.27
30 30.28
33 350.78
Total 385,648.90
Diameter C«MSC, Footage
8 303,930.02
10 16,669.46
12 10,689.18
Total 331,288.66
5. Plugging and Sealing Manhole Covers. Similar to prior years,
Contractor shall plug and seal each manhole that is found to be plugged or sealed prior
to Contractor removing the manhole cover.
6. CPI Adjustment. Prices shown in Year 3 shall be adjusted for Year 4 in
accordance with the original Agreement that states:
Compensation. The District will be charged the per linear foot
prices as shown in Exhibit "A" for maintenance cleaning services. The
Contractor may request in writing an annual fee adjustment equal to the
Consumer Price Index (CPI) for the Los Angeles-Riverside-Orange
County Metropolitan Area published by the U.S. Department of Labor,
Bureau of Labor Statistics for a twelve month period (March to March),
effective January 1, 20 and for each consecutive year of the
Agreement. The District will have discretion to approve or deny
Contractor's request for an annual fee adjustment.
Pursuant to Contractor's written request for said adjustment, the change from the
March 2012 index of 700.028 to the March 2013 index of 709.051 is 1.29% percent, and
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Contractor is allowed this adjustment. Contractor shall also provide an updated rate
sheet of related services, including closed circuit television (CCTV), emergency
response, root cutting, etc.
7. Manpower and Equipment Assigned to District Work. Contractor may
continue the practice of assigning two cleaning crews to District work.
8. Daily Footage. The original Agreement states:
Contractor shall set as its goal 4,500-7,000 feet per day for maintenance
cleaning. Contractor recognizes that footages substantially above this
level result in less effective cleaning.
Contractor is encouraged to maintain footages closer to the lower goal in order to
maximize cleaning efficiencies.
9. Original Agreement to Remain in Effect. Except as modified by this
Addendum No. 3 and previous addenda, the December 2010 Agreement between
District and Contractor shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Addendum No. 3
to be executed the day and year first above written.
COSTA MESA SANITARY DISTRICT NATIONAL PLANT SERVICES, INC.
ry
Pre..h ent Signature
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Secretary Typed Name
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Title
APPROVED AS TO FORM:
District Counsel
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w�SP SANITq*y ITEM NO. 19
�� ooso � �� Costa Mesa Sanitary District
4-c(RPORATE�`Q . . .an Independent Special District
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To: Board of Directors
Via: Scott Carroll, General Manag
From: Rob Hamers, District Engineer
Date: October 24, 2013
Subject: Addendum No. 3 to National Plant Services Agreement for Annual
Sewer Mainline Cleaning
Summary
Beginning in the 2012-2013 fiscal year, the District began the practice of dividing the
yearly cleaning footage between the District's contractor, National Plant Services, Inc.
(NPS), and District staff in.order to utilize the District's new sewer cleaning vehicle and
reduce program costs. Enclosed for Board consideration is a proposed addendum to
continue the cleaning program utilizing the shared cleaning concept.
As shown on the rate calculation sheet attached hereto, the District will save
approximately $100,867.94 by cleaning its portion of the system in 2013-2014.
Staff Recommendation
The Board of Directors approves Addendum No. 3 to National Plant Services Agreement
in the amount of$123,891.02
Analysis
With the addition of the third maintenance worker, District field crews total four men
including the Maintenance Supervisor. The increase in field crew size coupled with the
recent purchase of a new sewer cleaning truck (VacCon truck) gives the District the ability
to perform regular sewer line cleaning. Shared cleaning saves the District substantial
money and also places the National Plant Services sewer cleaning vehicles inside the
District, which provides additional coverage in the event of an emergency.
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�* Protecting our community's health and the environment by providing solid waste and sewer collection services.
www.amdca.gov
Board of Directors
October 24, 2013
Page 2 of 3
The proposed addendum is for the fourth year of cleaning under the five-year contract
between the District and National Plant Services. The contract is very much in the favor of
the District as the per footage rates are very low and the District has enjoyed a long-
standing mutually beneficial relationship with the company. As per the terms of the
agreement, NPS is eligible to receive an increase in their cost for service that equals
March to March Consumer Price Index (CPI) for Los Angeles, Orange and Riverside
Counties. The March 2012 to March 2013 CPI is 1.29%, which was added to the rates.
Strategic Plan Element & Goal
This item complies with the objective and strategy of Strategic Plan Element 1.0, Sewer
Infrastructure, which states as follows:
"Objective: Our objective is to collect and transport wastewater to meet the needs of
existing and future customers.
Strategy: We will do this by the careful management of the collection infrastructure using
prudent planning and maintenance, with financial strategies to maintain sufficient capacity
and respond to changing regulatory demands."
Legal Review
Associate District Counsel prepared and signed the proposed Addendum No. 3 as
attached hereto.
Environmental Review
Sewer main cleaning has been previously determined by Counsel for the District to be a
maintenance activity, therefore, sewer main cleaning is categorically exempt under the
California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et.
seq.) under Section 15301 Existing Facilities as "Class 1 consists of the ... maintenance
... of existing public or private structures", as further described in Section (b) as "Existing
facilities of both investor and publicly-owned utilities used to provide .... sewerage ..."
Financial Review
The fiscal year 2013-14 budget for sewer line maintenance/cleaning is $220,000 and to
date no funds have been expended.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the
October 24, 2013 regular Board of Directors meeting.
Alternative Actions
1. Refer the matter back to staff for additional information.
Board of Directors
October 24, 2103
Page 3 of 3
Reviewed by: CA-1-u-r
/1-- -a-c-175 Stacey Cuevas
Finance Manager
Attachments A: Addendum No. 3
B: Calculation of Approximate Costs
C: Calculation of Approximate Savings
D: CPI Chart
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Protecting our community's health and the environment by providing solid waste and sewer
collection services.
www.crosdca.gov