CC RESOLUTION 5004RESOLUTION NO. 5004
A RESOLUTION APPROVING THE DESIGN AND PLANS FOR THE
GRAND AVENUE BEACH LIFEGUARD STATION FORCEMAIN
PROJECT PURSUANT TO GOVERNMENT CODE § 830.6 AND
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT
WITH CHEVRON USA, INC. FOR INSTALLATION OF THE
FORCEMAIN WITHOUT THE NEED FOR COMPETITIVE BIDDING AS
OTHERWISE REQUIRED BY THE PUBLIC CONTRACT CODE.
The City Council of the city of El Segundo does resolve as follows:
SECTION 1: The City Council finds and declares as follows:
A. In 2013, the City constructed a lifeguard station with restrooms at Grand
Avenue Beach. The lifeguard station has been in operation since May
2013.
B, Due to the remoteness of the location, the lifeguard station currently has
no sewer connection. Wastewater generated at the lifeguard station is
being removed periodically by truck and transported to the Hyperion
treatment plant.
C. The sewer line nearest the lifeguard station is 2,000 feet to the south and
110 feet higher in elevation. Chevron USA, Inc. ( "Chevron ") owns the
property between the lifeguard station and the nearest sewer line.
D. In order to connect the lifeguard station to the sewer system, it is
necessary to construct a forcemain across Chevron's property. There are
no other cost - effective, feasible alternatives for connecting the lifeguard
station to the sewer system.
E. Chevron's El Segundo refinery is subject to the Maritime Transportation
Security Act of 2002 (Pub. L. 107 -295) and must comply with, in addition
to other applicable law, 46 U.S.0 § 70105 and 33 CFR § 105.100,
105.105 and 154.100. Among other things, these laws require persons
accessing the facility to obtain biometric identification referred to as
Transportation Worker Identification Credentials ( "TWIC ").
F. The portion of the Chevron property over which a sewer line serving the
lifeguard station must necessarily traverse requires TWIC identification for
access. The TWIC program is established through the Department of
Homeland Security and co- administered by the Transportation Security
Administration and the Coast Guard. Only personnel that hold both
Chevron security clearance and TWIC security clearance are allowed
access to the area. Accordingly, the only contractors that could potentially
perform the work are those that possess both Chevron and TWIC security
clearances.
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G. Chevron is willing to allow the forcemain to be constructed across its
property and is willing to enter into an easement and license agreement
with the City as necessary for the placement of the line and to facilitate
future maintenance and repairs. However, Chevron will not allow the
forcemain to be constructed across its property unless (1) the work is
performed by a security - cleared contractor chosen by Chevron, and (2)
Chevron itself contracts directly with the contractor for the work. Chevron
will not allow a contractor to perform work on its property pursuant to a
contract with a third party.
H. Chevron will agree to have the forcemain constructed in accordance with
the City's plans and specifications and will allow representatives from the
Public Works Department to be present during construction in order to
ensure that work is performed consistent with the plans and specifications.
City staff retained AKM Consulting Engineers to design the proposed
lifeguard station forcemain (the "Project ").
J. Plans and specifications for the Project were completed on February,
2016.
K. In February 2016, the City provided Chevron with the plans and
specifications for the Project and Chevron sought bids from 3 qualified
contractors with the requisite security clearances.
L. Chevron received bids in the amount of $786,560.00 from APB and
in the amount of $873,857,00 from PMI, Inc.
M. Chevron is willing to retain AIB, Inc. ( "Contractor ") to complete the Project
in accordance with the City's plans and specifications provided that the
City enters into a reimbursement agreement with Chevron that obligates
the City to reimburse Chevron for all amounts charged to Chevron by
Contractor for the construction of the Project.
N, Chevron understands that work on the Project is subject to prevailing
wage requirements and will ensure that its agreement with Contractor
calls for the payment of prevailing wage to all workers on the Project and
otherwise ensures Contractor's compliance with applicable prevailing
wage laws.
O. Ordinarily, the City would need to comply with the competitive bidding
requirements set forth in the Public Contracts Code related to public works
contracts for this type of project;
P. The purpose of such bidding requirements is to guard against favoritism,
improvidence, extravagance, fraud and corruption, to prevent waste of public
funds, and to obtain the best economic result for the public;
Q, The facts and circumstances of this Project, however, demonstrate that
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competitive bids would be unavailing or would not produce an advantage,
and the advertisement for competitive bid would thus be undesirable and
impractical for the following reasons:
1. The Project will be located entirely on private property owned and
controlled by Chevron U.S.A., Inc. Although Chevron is willing to
cooperate with the City and allow the sewer forcemain to be
constructed across its property, Chevron will not allow the Project
to be constructed across its property unless (a) Chevron has full
discretion to choose the contractor that will perform the work, and
(b) Chevron itself contracts directly with the contractor for
performance of the work. Chevron will not allow a contractor to
construct the Project across its property pursuant to a contract
between the City and the contractor.
2. Chevron had complete discretion to choose a qualified contractor to
perform the work. No city official, officer, or employee had any
input whatsoever in the process of choosing the contractor.
Consequently, there has been no possibility of favoritism, fraud, or
corruption in the selection of the contractor.
1 Chevron lets millions of dollars in contracts at its El Segundo facility
each year and qualified contractors with the requisite security
clearances compete aggressively for contract awards in the hope of
making a favorable impression and being considered for additional
projects in the future. Consequently, the City expects that a
contractor chosen by Chevron will be able to complete the Project
at a cost that is less that what the City would incur if it were
competitively bid through the normal public contracting process.
4. Engaging in a public bidding process for this proposed Project
would be impractical and produce no advantage because Chevron
will not allow any contractor —even those with the requisite security
clearances —to perform work on its property pursuant to a contract
with a third party (i.e., the City). Hence, the City could not contract
directly with any responsive bidder for performance of the work.
R, In waiving the competitive bid requirements otherwise required by the
SPMC, the City Council takes note of the analysis and decisions set forth
in Graydon v. Pasadena Redevelopment Agency (1980) Cal.App.3d 631;
Hodgeman v. City of San Diego (1942) 53 Cal. App.2nd 610; Orange
County Water Dist. v. Bennett (1958) 156 Cal. App.2nd 745; and Los
Angeles G &E Corp. v. City of Los Angeles (1922) 188 Cal. 307;
S. AKM Consulting Engineers designed the Project and prepared the
Project's plans and specifications. The plans and specifications have
been reviewed and approved by the City Engineer. The plans are now
complete and the Project may be constructed;
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T. The City wishes to connect the Grand Avenue Beach lifeguard station to
the municipal sewer system and avoid the continued need for the pumping
and trucking of raw sewage.
U. The City Council wishes to obtain the immunities set forth in Government
Code § 830.6 with regard to the plans and construction of the Project.
SECTION : Design Immunity,
A. The design and plans for the Project are determined to be consistent with
the City's standards and are approved.
B. The design approval set forth in this Resolution occurred before actual
work on the Project construction commenced.
C. The approval granted by this Resolution conforms with the City's General
Plan.
D, The approval and authorization granted by this Resolution is intended to
avail the City of the immunities set forth in Government Code § 830.6.
SECTION 3: Authorizations.
A. The City Engineer, or designee, is authorized to act on the City's behalf in
approving any alterations or modifications of the design and plans
approved by this Resolution.
B. The City Manager is authorized to execute a contract with Chevron
committing the City to reimburse Chevron for the cost of construction of
the Project up to an amount of $909,216,00 which represents the amount
of the bid received by Chevron $ZaQ,560 and Chevron's 14Q,,000 expense
to assist the project plus a contingency of 10 %.
C. The City Manager is authorized to advance funds to Chevron prior to
commencement of work and to make progress payments as required by
Chevron pursuant to its agreement with Contractor.
SECTION 4: The City Clerk is directed to certify the adoption of this Resolution.
SECTION 5: This Resolution will become effective immediately upon adoption.
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Resolution No. 5004 was PASSED, APPROVED AND ADOPTED this 18th day of
October, 2016.
b uza e Fuentes, Mayor
ATTEST:
ee
Tr y y��er,,, ity Clerk
APPROVED AS TO FORM;
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that the
whole number of members of the City Council of said City is five; that the foregoing Resolution
No. 5004 was duly passed, approved and adopted by said City Council at a regular meeting held
on the 18th day of October, 2016, approved and signed by the Mayor, and attested to by the City
Clerk, by the following vote:
AYES: Mayor Fuentes, Mayor Pro Boyles, Council Member Brann, Council
Member Pirsztuk, Council Member Dugan
NOES:
ABSENT:
ABSTAIN:
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 6th day of December, 2016.
11, f f Cy W vex•, City (µ leik'
t l the (``ity of El Segundo
California
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