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HomeMy WebLinkAboutE-06 Staff Report - PSA Benchmark ResourcesCONSENT ITEM E-6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: DON PENMAN, INTERIM CITY MANAGER FROM: KURT CHISTIANSEN, FAICP, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: NOVEMBER 6, 2017 SUBJECT: APPROVE PROFESSIONAL SERVICE AGREEMENT WITH BENCHMARK RESOURCES TO PROVIDE MINING CONSULTATION SERVICES FOR THE VULCAN MATERIAL AND CEMEX MINING SITES SUMMARY: Vulcan Materials Azusa Rock and Cemex Construction Materials Mine Azusa Quarry are two mines located within the City’s boundaries. All mines located in the State of California are mandated to comply with SMARA (Surface Mining and Reclamation Act). Therefore, the City of Azusa has traditionally contracted the compliance of SMARA and bi-annual monitoring to a consultant. The existing consulting contract with Benchmark Resources expired on September 2, 2017. On August 21, 2017, the City Council approved to solicit a Request for Proposals (RFP) for mining consultant for various reviews associated with SMARA compliance and bi-annual monitoring. Staff received proposals from three (3) firms. Upon evaluation of the proposals, Staff has identified one firm with the necessary experience required to provide the mining consultant services. This action approved a Professional Service Agreement with Benchmark Resources to provide mining consultant services. RECOMMENDATION: Staff recommends the City Council take the following action: 1) Approve a Professional Services Agreement with Benchmark Resources to provide mining consultant services. DISCUSSION: On August 21, 2017, a Request for Proposal (RFP) to provide mining consultant for various reviews associated with SMARA (Surface Mining and Reclamation Act) compliance and bi-annual monitoring was distributed to a number of consultants and made available on the City’s website. A total of three (3) firms provided a proposal by the indicated deadline of September 21, 2017. An initial review for minimum qualifications was conducted and three (3) proposals were provided to the evaluation APPROVED COUNCIL MEETING 11/6/2017 Approve Professional Services Agreement with Benchmark Resources November 6, 2017 Page 2 committee consisting of the Director of Economic and Community Development, Associate Planner, and Assistant Planner. The evaluation committee convened to evaluate the proposals on the following criteria: (1) Experience and Qualifications; (2) Scope of Services; (3) Detailed work plan to complete services; (4) Qualification and experience of team members; (5) Overall quality of response to RFP; and (6) Consultant’s Fee Proposal. The three firms in the evaluation process were: Firm SMARA Inspection & Report Cost Biannual Review & Report Cost Benchmark Resources $7,045.00 $2,795.00 Geo-Logic Associates $5,298.00 $4,353.00 G3SoilWorks $7,960.00 $9,990.00 After careful deliberation, the evaluation committee unanimously selected Benchmark Resources for the mining consultant services as the most qualified firm to fulfill the required scope of services. While all three firms’ submitted proposals that were similar in cost and exhibited the capacity to perform high quality mining services, the evaluation committee felt that Benchmark Resources is the stronger candidates because of their qualification, experience, and previous work history with the City of Azusa. Professional Services Agreements do not require for the lowest submitted bid to be awarded. Additionally, Benchmark Resources has extensive mining consultant experience with previous reviews in the City of Azusa. This action shall not be binding on any future Planning Commission and/or City Council actions. FISCAL IMPACT: All costs associated with the consultant review and document preparation will be paid by the respective mining applicant and there will be no fiscal impact to the City. Prepared by: Reviewed by: Manuel Muñoz Kurt Christiansen, FAICP Associate Planner Economic and Community Development Director Reviewed and Approved: Reviewed and Approved: Louie F. Lacasella Don Penman Senior Management Analyst Interim City Manager Attachments: 1) Mining Consultant Services Proposal Received by Benchmark Resources 2) Professional Services Agreement – Benchmark Resources September 21, 2017 Manual Munoz, Associate Planner Economic and Community Development City of Azusa 213 East Foothill Blvd. Azusa, CA 91702 SUBJECT STATEMENT OF QUALIFICATIONS FOR: MINING CONSULTANT Dear Mr. Munoz, Benchmark Resources is submitting this statement of qualifications in response to the City of Azusa’s (City) request for a mining consultant. Benchmark Land Use Group, Inc., doing business as Benchmark Resources, is a California corporation. We are based in Folsom, California, where all work would be performed for this contract. Our contact information is as follows: Primary Contact: David E. Brown, Principal Andrew Heinemann, P.G. (lead inspector) Benchmark Resources 2515 East Bidwell Street Folsom, CA 95630 Phone: 916-983-9193 (main) E-mail: dbrown@benchmarkresources.net E-mail: aheinemann@benchmarkresources.net Our firm is ideally suited to completing this work because of our experience and background providing the services requested. Benchmark Resources has been providing these consulting services for the last 7 years and would like to continue providing this service to City of Azusa, as summarized below: •Qualifications and Experience: Benchmark Resources provides planning and environmental compliance services to lead agencies throughout California responsible for permit application processing, environmental review, and compliance monitoring of surface mining operations. We support all aspects of mine permitting and compliance under the California Surface Mining and Reclamation Act (SMARA), including environmental investigations on-site, mine engineering, reclamation planning for lands and entitlements, and compliance with local mining ordinances. •Annual Inspections: Benchmark Resources’ staff has inspected mine reclamation activities (per SMARA § 2774) for more than 15 years. To date, our staff has completed hundreds of annual inspections for more than a dozen lead agencies statewide. We are equipped with the appropriate vehicles, safety equipment, and training necessary to perform such work. Attachment 1 Mr. Manual Munoz | September 21, 2017 2 • Financial Assurance Cost Estimates: We have prepared financial assurance cost estimates since they were first required. Our experience has given us a thorough understanding of SMARA’s financial assurance requirements and the State Mining and Geology Board’s guidelines. We have developed methods to both streamline and increase the accuracy of the annual verification process for reclamation financial assurance. Completing hundreds of annual financial assurance cost estimates has made us uniquely familiar with the costs associated with reclaiming for all types of second uses. • Compliance with Conditional Use Permit for Mining: Benchmark Resources’ staff has performed conditional use permit (CUP) compliance review on mine sites for more than 15 years. To date, our staff has completed hundreds of CUP compliance reviews for more than a dozen lead agencies statewide. When possible we are utilizing the time of the SMARA inspection visit to confirm conditions regarding the CUP compliance. • SMARA Technical Support: Benchmark Resources’ staff has been assisting lead agencies with SMARA compliance since the mid-1980s. (Annual inspections were not required until the 1991 amendments to the statute and regulations.) Therefore, we are well-versed in SMARA development and experts at the procedural aspects of its implementation. Providing SMARA technical support is consistent with our overall mine and reclamation consulting practice; we assist with revegetation, resoiling, slope stability, surface and groundwater protection, and other aspects of regulatory compliance and environmental protection. As preparers of mine and reclamation plans, and reviewers of hundreds of reclamation plans throughout California, we fully understand the purpose and implementation of these plans. • References: Lead agency references are provided in this proposal related to their experience working with us to perform annual inspection tasks. Our inspection program is led by a California-registered geologist and mining engineer. He is supported by other regulatory and technical experts on staff. We also have relationships with subconsultants who specialize in, for example, geotechnical, hydrological, and soils issues; however, we are capable of providing the scope of services requested by the City using our staff. This proposal is brief and formatted according to the format the City requested. We have recently provided SMARA inspection services to the City and again look forward to assisting the City with SMARA compliance and compliance with the off-channel mining plan and implementing ordinances (Off-Channel Mining Ordinance and Surface Mining Reclamation Ordinance). Because of our recent experience, and our local presence, we are able to provide very competitive pricing for the inspection work. Thank you for your consideration. Sincerely, David E. Brown Principal CITY OF AZUSA PROPOSAL FOR: MINING CONSULTING SERVICES CITY OF AZUSA ECONOMIC AND COMMUNITY DEVELOPMENT 213 EAST FOOTHILL BOULEVARD, AZUSA, CA 91702 SEPTEMBER 21, 2017 i TABLE OF CONTENTS 1. INTRODUCTION ......................................................................................................................................... 1 2. QUALIFICATIONS AND EXPERIENCE ........................................................................................................ 2 2.1 Annual SMARA Inspections and Reporting............................................................................... 5 2.2 Financial Assurance Cost Estimates ........................................................................................... 6 2.3 Project Examples ......................................................................................................................... 6 3. REFERENCES ............................................................................................................................................... 8 4. BENCHMARK RESOURCES SMARA TEAM ................................................................................................ 8 5. WORK PLAN..............................................................................................................................................11 5.1 Annual Inspections ....................................................................................................................12 5.2 Financial Assurance Verification ..............................................................................................13 5.3 Financial Assurance Mechanisms ............................................................................................13 5.4 Conditions of Approval Monitoring ........................................................................................13 5.5 Public Hearing Support ............................................................................................................14 6. SCHEDULE ................................................................................................................................................14 8. COMPENSATION ......................................................................................................................................14 8.1 Annual Inspections, Financial Assurance Review, and Biennial Compliance Review .........14 8.2 Planning Commission Meeting Preparation and Support ....................................................15 8.3 Additional On-Call Services ......................................................................................................15 9. BENCHMARK RESOURCES FEDERAL TAX IDENTIFICATION NUMBER .................................................16 10. AGREEMENT TO TERMS AND EXCEPTIONS ...........................................................................................16 FIGURES Figure 1 Statewide Mine and Reclamation Experience Figure 2 SMARA and Technical Services Team TABLES Table 1 Mine Inspection Experience Table 2 Proposed Fixed Fee Budget for SMARA Compliance Table 3 Rate Schedule ATTACHMENTS Attachment A Inspector Qualifications Attachment B Hourly Breakdown of Proposed Costs CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services ii THIS PAGE INTENTIONALLY LEFT BLANK CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 1 1. INTRODUCTION The City of Azusa (City) has requested a proposal to provide consulting services for various reviews and activities in accordance with the California Surface Mining and Reclamation Act (SMARA). Benchmark Resources has been providing these consulting services for the last 7 years and would like to continue providing this service to City of Azusa. Benchmark Resources is proposing on the following tasks: • Conduct inspections and prepare reports. • Prepare biannual review of conditions for Azusa Rock (Fish Canyon). • Attend planning commission and City Council meetings. Benchmark Resources is also available to provide on-call services for: • review and evaluation of reclamation plans; • assistance with reclamation plan updates and compliance issues as required under SMARA and the City Municipal Code, Chapter 88.44, Surface Mining and Reclamation; • assistance with identifying and resolving critical geotechnical and engineering issues related to mining operations; and • on-call services pertaining to geological and technical support. These services are the heart of Benchmark Resources’ services to counties and cities statewide. We have the expertise necessary to ensure the inspection process is rigorously completed to satisfy SMARA and the City Municipal Code. Our staff’s background in SMARA compliance, our firm’s experience on mining projects, and our business focus on providing planning and environmental services for mine permitting make Benchmark Resources uniquely suited to meeting the City’s needs. Summarized below is our experience and background providing the services requested: • Qualifications and Experience: Benchmark Resources provides planning and environmental compliance services to lead agencies throughout California responsible for permit application processing, environmental review, and compliance monitoring of surface mining operations. We support all aspects of mine permitting and compliance under SMARA, including environmental investigations on-site, mine engineering, reclamation planning for lands and entitlements, and compliance with local mining ordinances. • Annual Inspections: Benchmark Resources’ staff has inspected mine reclamation activities (per SMARA § 2774) for more than 15 years. To date, our staff has completed hundreds of annual inspections for more than a dozen lead agencies statewide. We are equipped with the appropriate vehicles, safety equipment, and training necessary to perform such work. We are already familiar with the City’s two mining operations through our recent experience conducting the City’s inspections (since 2010). • Financial Assurance Cost Estimates: We have prepared financial assurance cost estimates (FACEs) since they were first required. Our experience has given us a thorough understanding of SMARA’s financial assurance requirements and the State Mining and Geology Board’s (SMGB’s) guidelines. We have developed methods to both streamline and increase the accuracy of the annual verification process for reclamation financial assurance. Completing hundreds of annual FACEs has made us uniquely familiar with the costs associated with reclaiming for all types of second uses. CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 2 • Compliance with Conditional Use Permit for Mining: Benchmark Resources’ staff has performed conditional use permit (CUP) compliance review on mine sites for more than 15 years. To date, our staff has completed hundreds of CUP compliance reviews for more than a dozen lead agencies statewide. When possible we are utilizing the time of the SMARA inspection visit to confirm conditions regarding the CUP compliance. • SMARA Technical Support: Benchmark Resources’ staff has been assisting lead agencies with SMARA compliance since the mid-1980s. (Annual inspections were not required until the 1991 amendments to the statute and regulations.) Therefore, we are well-versed in SMARA development and experts at the procedural aspects of its implementation. Providing SMARA technical support is consistent with our overall mine and reclamation consulting practice; we assist with revegetation, resoiling, slope stability, surface and groundwater protection, and other aspects of regulatory compliance and environmental protection. As preparers of mine and reclamation plans, and reviewers of hundreds of reclamation plans throughout California, we fully understand the purpose and implementation of these plans. For example, we provided the City with additional services by reviewing the Azusa Rock (Fish Canyon) buttress fill plan and provided the City and Vulcan with recommendations for revisions. We also conducted a follow-up review of the revised buttress fill plan and provided the City with recommendations for approval. Our services are performed statewide, as shown in Figure 1, “Statewide Mine and Reclamation Experience.” 2. QUALIFICATIONS AND EXPERIENCE Benchmark Resources is a multidisciplinary environmental planning company specializing in environmental analysis and permitting services for surface mining throughout California. Our primary areas of expertise include: • permit-compliance monitoring; • mine and reclamation planning; • annual SMARA mine inspections; • environmental impact analysis; • mitigation monitoring; • land use planning and permitting; • public-process support; and • lead agency staff services associated with mine and reclamation planning, permitting, compliance, and closure. Our staff has specialized expertise in the mining industry and are led by senior-level individuals with experience in environmental resources, regulatory compliance, and mine development, operation, and reclamation. Our team includes individuals with expertise in wildlife habitat and endangered species, slope stability, revegetation, engineering and erosion control, agricultural land and its productivity, surface waters, and soils. STATEWIDE MINE AND RECLAMATION EXPERIENCE CITY OF AZUSA PROPOSAL FOR MINING CONSULTING SERVICES Figure 1 CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 4 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 5 2.1 Annual SMARA Inspections and Reporting Benchmark Resources’ staff has inspected mine reclamation activities annually in compliance with SMARA § 2774 for more than 15 years. Our staff has completed annual inspections for a dozen lead agencies statewide, resulting in more than 1,200 SMARA mine inspections. Our team of technical, legal, and regulatory compliance experts thoroughly understands mining operations and the requirements for reclaiming mined lands. We are contracted with eight lead agencies for annual SMARA inspections, but have performed annual inspections for 14 lead agencies, as summarized in Table 1, “Mine Inspection Experience.” TABLE 1 MINE INSPECTION EXPERIENCE Lead Agency Number of Operations Scope of Work Number of Years Inspected Number of Inspections to Date Annual SMARA Inspection CUP Inspection FACE Verification CURRENT SMARA CONTRACTS Monterey County 16 √ - √ 2003–Current (14) 224 Alameda County 10 √ - √ 2004–Current (13) 130 San Benito County 19 √ - √ 2006–Current (11) 209 City of Azusa 2 √ √ √ 2010–2017 (7) 14 Madera County 3 √ - √ 2013–Current (4) 12 Imperial County 38 √ √ √ 2014–Current (3) 114 Alpine County 4 √ - √ 2003–2011 (8) 2015–Current (2) 40 Stanislaus County 14 √ - √ 2015–Current (2) 28 HISTORIC SMARA CONTRACTS Merced County 27 √ - √ 1998–2007 (9) 243 El Dorado County 12 √ - √ 1998–2000 (3) 36 City of Redding 2 √ - √ 1998–2013 (15) 30 Santa Clara County 9 √ - √ 2004–2006 (2) 18 Amador County 24 √ √ √ 2004–2007 (3) 72 City of Tracy 1 √ - √ 2000–2014 (15) 15 Yolo County 7 √ √ √ 2014–2015 (2) 14 Riverside County 11 √ - √ 2016 (1) 11 TOTAL INSPECTIONS 1,210 Notes: CUP = conditional use permit; FACE = financial assurance cost estimate; SMARA = Surface Mining and Reclamation Act. We have several other ongoing contracts for services, including environmental impact reports, staff services for reclamation and closure oversight, reviews of CUP compliance, and other lead agency services. We are familiar with the MRRC-1 form adopted by the SMGB in 2013 and understand the appropriate level of information to be updated. We understand the intricacies in interpreting reclamation plan requirements, which vary in level of detail, and ensuring that the annual inspection appropriately documents site conditions and compliance with the approved plan. CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 6 2.2 Financial Assurance Cost Estimates Benchmark Resources has prepared and reviewed hundreds of FACEs and fully understands the intent and requirements of SMARA related to financial assurance and the SMGB’s financial assurance guidelines. We have developed methods to both streamline and increase the accuracy of the annual financial assurance process, including (as necessary) completely independent calculation of current costs. Through our experience in preparing and reviewing FACEs, we are fully familiar with the California Division of Mine Reclamation’s (DMR’s) expectations for the annual FACE update, the acceptable cost sources, and the level of documentation necessary to minimize the number of DMR’s comments and modifications. Benchmark Resources’ staff reviews and makes recommendations to clarify, substantiate, and standardize the FACEs submitted annually by operators in accordance with California Code of Regulations (CCR) § 3804(c). The estimates are reviewed in accordance with the requirements of § 2773.1 of the SMARA statutes and § 3800 et seq. of the SMARA regulations. This process ensures a complete review and compiles the data in a straightforward format. 2.3 Project Examples In addition to Table 1, which outlines our current and historic SMARA services projects, below is a detailed list of our current SMARA projects: Madera County Description of Services: Annual SMARA inspections and financial assurance review Location: 4 mining operations throughout Madera County Size: 25 to 1,000 acres Contracted: Since 2013; current contract through 2023 Contact: Matt Treber, Planner III Address: 200 W. 4th Street, 3rd Floor, Madera, CA 93637 Phone: (559) 675-7821 E-mail: matthew.treber@madera-county.com Imperial County Description of Services: Annual SMARA inspections, financial assurance and conditions of compliance review, staff support services for CEQA review Location: 36 active mining operations throughout Imperial County Size: Ranging from 10 to 5,500 acres Contracted: Since 2015; renews annually Contact: Patricia Valenzuela, Planner VI Address: 801 Main Street, El Centro, CA 92243 Phone: (442) 265-1749 E-mail: PatriciaValenzuela@co.imperial.ca.us Stanislaus County Description of Services: Annual SMARA inspections and financial assurance review Location: 14 active mining operations throughout Stanislaus County Size: Ranging from 50 to 500 acres Contracted: Since 2015; current contract through 2020 Contact: Rachel Wyse, Planner Address: 1010 Tenth Street, Suite 340, Modesto, CA 95354 CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 7 Phone: (209) 525-6330 E-mail: wyser@stancounty.com San Benito County Description of Services: Annual SMARA inspections and financial assurance review Location: 19 mining operations throughout San Benito County Size: 3 to 400 acres Contracted: Since 2006; current contract through 2015 Contact: Taven Kinison Brown Address: 2301 Technology Pkwy., Hollister, CA 95023 Phone: (831) 902-2294 E-mail: tkinisonbrown@cosb.us Monterey County Description of Services: Annual SMARA inspections, financial assurance review, and use permit compliance review Location: 16 mining operations throughout Monterey County Size: 9 to 350 acres Contracted: Since 2003; current contract through 2017 Contact: Ramon Montano, Planner Phone: (831) 755-5169 Address: 168 W. Alisal Street, 2nd Floor, Salinas, CA 93901 E-mail: montanor@co.monterey.ca.us City of Azusa Description of Services: Annual SMARA inspections and financial assurance review Location: Two operations in the city of Azusa Size: Ranging from 50 to 90 acres Contracted: Since 2010; current contract through 2017 Contact: Kurt Christiansen, Director, Economic & Community Development Address: 213 E. Foothill Blvd., Azusa, CA 91702 Phone: (626) 812-5236 E-mail: kchristiansen@ci.azusa.ca.us Alpine County Description of Services: Annual SMARA inspections and financial assurance review Location: Four operations in Alpine County Size: Ranging from 20 to 160 acres Contracted: 2003–2011; newly contracted since 2015; current contract through 2020 Contact: Brian Peters, Community Development Director Address: 50 Diamond Valley Road, Markleeville, CA 96120 Phone: (530) 694-2140 ext. 425 E-mail: bpeters@alpinecountyca.gov Alameda County Description of Services: Annual SMARA inspections, financial assurance review, and use permit compliance review Location: 10 mining operations throughout Alameda County Size: 16 to nearly 1,000 acres Contracted: Since 2004; current contract through 2019 CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 8 Contact: James Gilford, Deputy Director Phone: (510) 670-6437 Address: 224 West Winton Ave., Ste. 205, Hayward, CA 94544 E-mail: james.gilford@acgov.org Riverside County Description of Services: Annual SMARA inspections and financial assurance review Location: 11 sites operated by the Transportation Lead Management Agency of Riverside County Size: Ranging from 10 to 600 acres Contracted: Contracted for 2016 reporting year for SMARA services. Contact: David Jones, County Geologist Address: 4080 Lemon Street, Riverside, CA 92501 Phone: (951) 955-6863 E-mail: djones@rctlma.org 3. REFERENCES Client references that apply to this scope of services are as follows: 1. Stanislaus County Contact: Rachel Wyse, Planner Phone: (209) 525-6330 E-mail: wyser@stancounty.com 2. Imperial County Contact: Patricia Valenzuela, Planner IV Phone: (442) 265-1749 E-mail: PatriciaValenzuela@co.imperial.ca.us 3. Madera County Contact: Matt Treber, Deputy Director Phone: (559) 675-7821 E-mail: matthew.treber@madera-county.com 4. BENCHMARK RESOURCES SMARA TEAM Reclamation planning and compliance often involves multiple disciplines to address the various environmental, geologic, and engineering conditions; we therefore maintain a team approach. We assign a lead inspector, who may be supported in the review and interpretation of reclamation plan requirements by others on the team, depending on the issues. Figure 2, “SMARA and Technical Services Team,” provides a chart identifying our organizational structure and key personnel. See below for further qualifications of the key personnel. SMARA AND TECHNICAL SERVICES TEAM CITY OF AZUSA PROPOSAL FOR MINING CONSULTING SERVICES Figure 2 PROJECT MANAGER Andrew Heinemann TECHNICAL SUPPORT (As Needed) Dr. Andrew Kopania, Hydrogeologist, EMKO Environmental, Inc. David Sarkisian, Geotechnical Engineer Victor Claassen, Soils Scientist Additional specialists available as needed REPORT PREPARATION Mark Hernandez, AutoCAD, GIS, Graphic Design Christy Seifert, Technical Analyst, Editor, Graphic Design Katharina McKillip, Document Specialist SMARA MINE INSPECTIONS Andrew Heinemann, Project Manager David Brown, Principal FACE REVIEW Andrew Heinemann, Project Manager David Brown, Principal Katharina McKillip, Document Specialist FAM REVIEW Andrew Heinemann, Project Manager Katharina McKillip, Document Specialist ON-CALL SUPPORT All, as needed CITY OF AZUSA Proposal For: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 10 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 11 Key Personnel Andrew Heinemann, PG, will be the lead inspector for the City. He is a mining engineer and California-registered professional geologist (Andrew Heinemann, California Registered Geologist No. 9171). He has worked on mining projects in construction aggregates, industrial minerals, and precious metals for more than 18 years at more than 30 mines within the U.S. and western Europe. He has served as mine geologist, senior mining engineer, and mine manager. He successfully managed mine sites while adhereing to reclamation plans, developing concurrent reclamation activities such as revegetation test plots, maintaining stable mining faces, controlling noxious weeds, and managing waste/backfill and pond facitlites. David Sarkisian, PG, CEG, PE, will provide support to Mr. Heinemann. Mr. Sarkisian is a professional geologist, certified engineering geologist, and professional engineer with 22 years of experience. His years of experience include supervision of civil infrastructure and dam safety–related projects; geotechnical investigations for levee repairs and erosion sites; and geotechnical engineering services for pond embankments, pump stations, reservoirs, and bridges. He has supervised quality control testing of asphalt, aggregates, and soil. He has also served as the Engineer of Record for special inspection services for reinforced concrete, structural masonry, and structural steel construction. David Brown, a principal and president of Benchmark Resources, is recognized as a statewide leader in mining consulting, with extensive experience in SMARA, California Environmental Quality Act (CEQA), and National Environmental Policy Act (NEPA) related to almost every type of mining operation (e.g., hard rock, off-channel, surface, instream) in the state. Mr. Brown has been involved with mining projects for more than 25 years and with land use planning for nearly 30 years. He has worked on more than 300 mining projects and has prepared mining documents for more than 40 jurisdictions in California. Mr. Brown will be the project director for City services and will oversee team work. (See Attachment A, “Resumes,” for further details.) Subconsultants: Technical issues that may be identified during on-site inspections may require input from our hydrology, geotechnical, revegetation, or other associates. While we propose no particular subconsultants for this contract, and have never called on any to support the City in the past, we have as- needed support by numerous technical experts in an array of disciplines for environmental and SMARA compliance (e.g., hydrology, geotechnical, soils, biology, revegetation). The technical consultants we work with are chosen based on long-term relationships and those that are highly regarded for their experience and success in their fields. Support Staff: Benchmark Resources’ support staff includes professionals skilled in AutoCAD, geographic information systems (GIS), graphic design, technical analysis, technical editing, and document production. These professionals allow Benchmark Resources to produce high-quality maps and imagery; prepare documents and reports that are accurate, clear, and well-organized; and produce professionally formatted printed or electronic documents. 5. WORK PLAN Our firm is perfectly suited to perform inspections for the City in compliance with SMARA and the City’s Municipal Code (Chapter 88.44). Our staff has conducted more than 1,200 SMARA mine inspections within California. We have a team of technical, legal, and regulatory compliance experts who thoroughly CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 12 understand mining operations and reclamation of mined lands. We have practical experience preparing and reviewing reclamation plans and interpreting their specific requirements. The SMGB adopted a new Surface Mining Inspection Report form (MRRC-1 form) that lead agencies must use to document annual inspections, which became effective July 15, 2013. (The prior form remained nearly unchanged for 20 years.) We have implemented use of this form at more than 50 mining operations since 2013, including the past seven years of mine inspections for the City of Azusa, and are familiar with its requirements. We are also familiar with the Lead Agency Review Team review that has been implemented by DMR. Benchmark Resources’ experience and approach to conducting inspections and reporting will ensure that the inspection process is rigorously completed to satisfy SMARA requirements and the City’s regulations for mine reclamation compliance. Our staff’s background in SMARA compliance, our firm’s experience on mining projects, and our business focus on providing planning and environmental services for mine permitting make Benchmark Resources ideally suited to meet the needs of the City. 5.1 Annual Inspections Section 2774 of SMARA requires inspection to ensure mine conformance with mine reclamation plans. Annual inspection by Benchmark Resources involves the following tasks: • review previous inspection reports to determine if corrective actions or violations were noted; • review City files and correspondence for previous corrective actions or violations; • review DMR input to City via the Lead Agency Review Team as applicable; • review City files for any reclamation plan amendments; • confirm current operator/owner information; • review operator annual reports for the previous year regarding reported acreages disturbed and reclaimed; • review the approved reclamation plan, and any amendments thereto, to ascertain the reclamation commitments and expected conditions at the current phase of operations; • document: ‒ operating parameters, height, depth, acreage, and phasing; ‒ reclamation goals and schedule; ‒ City conditions of approval; and ‒ plan commitments for wildlife habitat, backfilling, regrading slope stability, recontouring, revegetation, drainage and erosion control, stream protection and groundwater, and topsoil salvage and distribution; • schedule and coordinate site inspection and attendees; • prepare file records available at inspection; • acquire aerial photographs and measure current site acreage; • overlay site boundaries and permitted operating limits and setbacks and evaluate compliance; • travel to site and perform scheduled inspection; • document field conditions relative to SMARA performance standards; • prepare draft written report, graphics, and photographs; • review draft report with City staff, and operator as appropriate; CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 13 • discuss/agree on time frames for compliance with corrective actions for violations; and • prepare final reports in triplicate for distribution to the City, operator, and DMR. 5.2 Financial Assurance Verification Recent changes to SMARA requirements regarding the overall inspection process and FACE review and approval are in place as of July 2017. The FACE submittal and review is the most significant change. (The operator must submit the updated FACE within 30 days of the inspection.) Benchmark is very familiar with the new requirements and will schedule the tasks to meet the required timelines. Benchmark Resources can review and make recommendations to clarify, substantiate, and standardize the reclamation estimates submitted annually by operators in accordance with CCR § 3804(c). The estimates are reviewed in accordance with the requirements of § 2773.1 of the SMARA statutes and § 3800 et seq. of the SMARA regulations. Because of increased scrutiny of financial assurance, we have developed a proprietary review form for financial assurance review. This form ensures a complete review and compiles the data in a straightforward format. Financial assurance verification by Benchmark Resources involves the following tasks: • Contact the operator and provide guidance and follow-up to receive the operator’s proposed annual estimate submitted in accordance with Public Resources Code § 2773.1(a)(3). • Determine the current California labor and equipment rates or locally established rates. • Review operator costs relative to current field conditions, aerial photographs, primary reclamation activities (grading), revegetation, structure and equipment removal, miscellaneous costs, monitoring, and reclamation administrative costs. • Acquire the current financial assurance mechanism (bond) value. • Compare the bond value to the FACE. • Review, resolve, and report discrepancies. Benchmark Resources documents this review of the adequacy of the FACE and, if necessary, provides comments to the City regarding potential inadequacies. 5.3 Financial Assurance Mechanisms The financial assurance mechanism must take one of the forms specified as acceptable by SMGB guidelines (i.e., payable statement, letters of credit, surety bond, or certificate of deposit). The mechanisms are held by the City. Following annual review and recalculation of financial assurance, Benchmark Resources will compare the new amount to the mechanism and recommend revisions, as necessary. 5.4 Conditions of Approval Monitoring Mine site startup, operation, and closure can require special attention during the inspection for SMARA compliance and CUP compliance. Mitigation monitoring is required for environmental mitigation required under CEQA. Our expertise in understanding regulatory requirements and operational realities facilitates this real-time work. The City is requesting assistance in the biennial monitoring of conditions of approval. We commonly coordinate this work with the SMARA inspection to maximize the efficiency of enforcing conditions and CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 14 the CEQA mitigation monitoring requirements. In many cases, limited additional costs are associated with this service, depending on the number of conditions, degree of compliance, and other variables. Benchmark has performed three biennial CUP reviews of Azusa Rock (Fish Canyon). 5.5 Public Hearing Support Permit compliance often involves procedural tasks that include public involvement with stakeholders and presentations to decision makers. These tasks generally include: • public scoping meetings, • community workshops, • planning commission presentations, • city council presentations, and • meetings and presentations to responsible agencies. Benchmark Resources staff has the materials, manpower, and impartial temperament needed to facilitate professional and successful public meetings. Our capabilities in preparing graphics, brochures, and other products designed to convey concepts and information in lay-person terms are well-recognized by our references. 6. SCHEDULE The inspection process begins with notifying the operators that the inspection process will begin with scheduling the inspections. We will perform the inspections in the field. Any potential issues will be discussed in the field and documented in the report. Operators will be asked to resolve potential issues within 90 days if possible, before the inspection reports are submitted to DMR. The operator must also submit a revised (updated) FACE to the City within 30 days of the inspection. Benchmark will review the FACE for completeness and adequacy and provide recommendations for approval or rejection to the City and the operator. The operator will make necessary revisions, and final approved FACE documents will be submitted to DMR. Benchmark will notify the operator when their FACE has been approved and is being reviewed by DMR. Once the review period for DMR has passed, the operator will again be notified to update their financial assurance mechanism. During the time of inspection, our staff will also conduct the CUP compliance review for the Fish Canyon mine site. We will provide a document summarizing the results of the review with recommendations for follow-up actions, if necessary. Our staff will be present and available to field questions relating to the mine site and CUP compliance review during the biennial planning commission meeting. Inspections typically take 1.5 to 3 hours, depending on the complexity of the site. An attempt is made to schedule the inspection at the convenience of the operator and ensure he attends. Coordination with County staff is also accommodated when their attendance is requested. 8. COMPENSATION 8.1 Annual Inspections, Financial Assurance Review, and Biennial Compliance Review For the mine inspection, financial assurance review, and report preparation, we are submitting a fixed-fee budget (see Table 2, “Proposed Fixed Fee Budget for SMARA Compliance,” see Attachment B, “Hourly Breakdown of Proposed Costs”). CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 15 This fee covers all aspects of the annual inspection, which is a review of the current status of the operation relative to the requirements of the approved reclamation plan. Incidental costs, such as auto mileage, per-diem, and report reproduction, are included in this fixed fee. Issues resolution is not included in this inspection cost. TABLE 2 PROPOSED FIXED FEE BUDGET FOR SMARA COMPLIANCE Mine Name and ID Fixed Mine Inspections, Reporting and FACE Review 91-19-0007, CEMEX Azusa Mine $7,045.00 91-19-0035, Azusa Rock Fish Canyon Quarry $7,045.00 TOTAL: $14,090.00 Mine Name and ID Fixed Biennial Compliance Review Fee 91-19-0035 Azusa Rock Fish Canyon Quarry $2,795.00 TOTAL: $2,795.00 8.2 Planning Commission Meeting Preparation and Support Benchmark resources will prepare for the City Planning Commission meeting by conducting the CUP compliance review and reviewing the inspection report and FACE. We will then meet with the operator and City staff to ensure the City is up to date regarding current mine conditions. Our staff will attend the City Planning Commission meeting and be available to address any questions that come up regarding the Fish Canyon mine site. See Attachment B for a task and cost breakdown for planning commission meeting preparation and support. 8.3 Additional On-Call Services On-call services would be completed according to determined tasks approved by the City. Invoicing would be according to our standard rate schedule, as shown in Table 3, “Rate Schedule.” Resolution of issues raised by SMGB staff would be accomplished on an hourly basis according to the rate schedule. TABLE 3 RATE SCHEDULE Item Rate BENCHMARK RESOURCES STAFF Principal $245/hour Director $225/hour Mining Engineer/Lead Inspector $180/hour Technical staff Analyst, CADD, GIS, field support $125/hour Support staff Document control, word processing, database management $105/hour SUBCONSULTANTS Hydrogeologist Dr. Andrew Kopania, EMKO Environmental, Inc. $200/hour Geotechnical engineer Ken Haskell, Golder Associates $260/hour CITY OF AZUSA Proposal for: ECONOMIC AND COMMUNITY DEVELOPMENT Mining Consulting Services 16 Item Rate Soils scientist Victor Claassen $170/hour EXPENDITURES Airfare, auto rental, lodging, equipment, subconsultants, printing and miscellaneous costs Cost, plus 15%(1) Report production—black and white $0.15 (letter), $0.50 (tabloid) Report production—color $1.00 (letter), $1.50 (tabloid) Large format printing—black and white $10 (18x24), $24 (24x36), $36 (36x48) Large format printing—color $20 (18x24), $54 (24x36), $65 (36x48) Auto mileage $0.56 per mile Per diem $40.00 per day (1) Administrative burden covers associated overhead, warranty, indemnification, insurance, and carrying costs. 9. BENCHMARK RESOURCES FEDERAL TAX IDENTIFICATION NUMBER Benchmark Land Use Group, Inc., doing business as Benchmark Resources, is a California corporation. We are based in Folsom, California, where all work would be performed for this contract. Our Federal Tax ID Number is 27-2274248. 10. AGREEMENT TO TERMS AND EXCEPTIONS Benchmark Resources has reviewed Appendix A, “Professional Services Agreement,” included in the request for proposal. We have no exceptions to the agreement and meet or exceed all of the necessary insurance requirements. ATTACHMENT A RESUMES Andrew Heinemann Mine Engineer/Geologist QUALIFICATIONS SUMMARY Mr. Heinemann is a California-registered professional geologist and has worked on mining projects in construction aggregates, industrial minerals, and precious metals for more than 18 years. He has served as mine geologist, senior mining engineer, and mine manager. He has managed both the development of mine plans and mine operations for both open pit and dredge mining. Mr. Heinemann’s mine planning work has been designed to effectively comply with reclamation, environmental, and permitting plans. He has managed the development and maintenance of hydrogeologic studies in both open pit and underground mining operations to achieve mine plan specifications and comply with environmental and other regulatory requirements. Years of Professional Experience: 18 Recent Projects Responsibilities Areas of Emphasis • SMARA Annual Mine Inspections • Apex Mine Permit Modification • Nelson Mine Revised Reclamation Plan • O’Neal water Discharge Relocation • Brierfield Mine Grouting Project • St. Genevieve Mining Contract Management • Provide detailed mine plans for public agencies, operators, and consultants • Prepare and amend mine and reclamation plans and financial assurance documents • Develop mining cost models and work with mine operators to optimize mining efficiency and reduce mining costs • Consultant and contractor management • Contract management • Mine Plan permitted volume modification • Mine and reclamation planning and FACE modifications • Hydrogeology, stream discharge permitting, consultant management • Hydrogeology, stream permitting EDUCATION B.S., Geology, California State University, Sacramento M.E., Mining Engineering, Missouri University of Science and Technology LICENSES California Registered Professional Geologist License # 9171 PROFESSIONAL AFFILIATIONS Society of Mining Metallurgy and Exploration THIS PAGE INTENTIONALLY LEFT BLANK David H. Sarkisian, PE, CEG 1691 Wortell Drive, Lincoln, CA 95648 (775) 671-7017 cell; (916) 543-2895 home davesark411@yahoo.com Professional Registrations State of California, Professional Engineer (Civil) #72638 State of Nevada, Professional Civil Engineer #19247 State of California, Professional Geologist #6965 State of California, Certified Engineering Geologist #2183 Education Bachelors of Science, Geology-Engineering Geology University of California, Los Angeles, 1994 Employment History 2015 – 2016: Supervising Engineer, California Department of Water Resources (DWR), Division of Operations and Maintenance, Civil Engineering Branch. Responsibilities include supervision of dam safety, environmental, and recreation-related compliance issues and correspondence for the Federal Energy Regulatory Commission (FERC) licensed projects within the State Water Project (Oroville-Thermalito Power Complex and Southern California SWP dams), project management and coordinator responsibilities for select civil infrastructure and dam safety- related projects. Project Coordinator for Perris Dam Remediation, Emergency Release Facility, and Outlet Tower Remediation project. 2011 – 2015: Senior Engineer, DWR, Division of Operations and Maintenance, Dam Safety Branch. As Chief of the Dam Surveillance North Section, responsibilities include: supervision of three engineers with inspection, surveillance, monitoring, and reporting efforts on thirteen State Water Project (SWP) dams (including Oroville-Thermalito Complex dams), coordination and execution of FERC Part 12D safety inspections and five-year Director’s Safety Review Boards for State Water Project dams, management of numerous consultant contracts and task orders, and planning and execution of numerous dam safety and special (dive, ROV, and rope access) inspections. In addition, the position originates correspondence, plans, and schedules to FERC and DSOD on dam safety compliance issues, provides technical and project support to DWR Field Divisions, and develops, justifies, and monitors budget for Section. 2010 - 2011: Engineering Geologist, Range D, DWR, Division of Flood Management, Levee Repairs Branch. Planned and implemented geotechnical investigations for R.D. 404 levee repair (slurry cut-off wall) and an erosion site in R.D. 2064 (rock slope protection) on the San Joaquin River. Authored Project Geology Report D-197 and repair alternative analysis reports. Performed seepage and stability analyses (Seep/W and Slope/W). 2008 - 2010: Senior Engineer/Geologist, Geocon Consultants, Inc., Carson City, Nevada. Provided geotechnical engineering and project management services on public works projects including street rehabilitation and construction, bridges, large-diameter pipelines, pump stations, water reservoirs, and pond embankments. Supervised quality control testing of asphalt, aggregates, David H. Sarkisian, PE, CEG and soil. Served as the Engineer of Record for special inspection services for reinforced concrete, structural masonry, and structural steel construction. 1994 - 2008: Engineering Geologist to Senior Engineering Geologist, Geolabs-Westlake Village, Westlake Village, California. Provided engineering geologic, geotechnical engineering, and project management services throughout the duration of several large residential developments. Performed due diligence investigations for acquisition, in addition to performing Tentative Tract level/feasibility studies, grading plan investigations, slope stability and landslide investigations/analyses, in-grading and construction inspection/reports, and final report preparation. Served as direct point of contact for clients varying from public agencies, public and private schools, commercial developers, national homebuilders, non-profit organizations, and individual homeowners. Also served as point of contact to permitting agencies. Applicable Technical Training and Seminars Advanced Scheduling Techniques, PMAW Graduate Seminar, 2015 FERC Dam Safety Seminar for Part 12D Consultants and Licensees, 2015 ASCE Short Course – Earthquake Induced Ground Motions, 2014 FERC Project No. 2100 and 2426 Site Specific Security Workshops, 2014 FERC Security Program Course, 2013 FERC Risk Informed Decision Making, Workshop II, 2013 ASDSO Conduit, Valves, Gates, and Valves Technical Seminar, 2013 Project Management Applications Workshop (40hrs), 2013 FERC Risk Informed Decision Making, Workshop I, 2012 Floodplain Management Association, Levee Design Workshop, 2012 Dam Operators Training, USBR, 2011 Seismic Site Response Evaluations – AEG Short Course, 2009 Drilled Shaft Foundations, FWHA Short Course, 2009 Advanced Slope Stability, AEG Short Course, 2008 Workshop on Recommended Procedures for Implementation of DMG Special Publication 117: Guidelines for Analyzing and Mitigating Landslide Hazards in California, Southern California Earthquake Center, 2002 Deputy Concrete Inspection, 1998 Nuclear Gauge Safety Training/Certification, 1994 Affiliations and Positions Member, Association of State Dam Safety Officials Member, Association of Environmental and Engineering Geologists (AEG) Secretary, Great Basin Section of AEG (2008-2009) Treasurer, Great Basin Section of AEG (2009) Select Private Consulting Project Experience Fair Oaks Ranch, Santa Clarita, California Over the course of 8 years, performed and supervised Tentative Tract Map and Grading Plan Review geotechnical investigations for 2500+ Lot Master Planned Community. Total earthwork exceeded 10,000,000 cubic yards. Performed and managed subsurface exploration and laboratory testing plans which included over two hundred hollow-stem auger borings, one hundred large- diameter (24-inch) bucket auger borings, three hundred test pits, and geologic mapping efforts. Performed slope stability analyses and designed mitigation for over forty landslides through David H. Sarkisian, PE, CEG buttress fills, debris basins, setbacks, and complete removal and recompaction of landslide debris. Provided geotechnical recommendations for augmented compaction criteria and settlement monitoring of deep engineered fills. Provided recommendations for mitigation of expansive and sulfate/sulfide-bearing soils, collapsible soils, hard rock excavation, and oversize rock placement. Skyline Ranch Project, Santa Clarita, California Performed and supervised Due Diligence and Tentative Tract Map geotechnical investigations for for a 1,200+ Lot Residential Subdivision. Coordinated with environmental consultants and client to avoid biologically sensitive areas while still acquiring necessary geologic and geotechnical data. Developed and executed exploration and laboratory testing programs to evaluate the landslides, settlement, rippability, stability of excavations, and suitability of on-site formations for use as aggregate base, riprap, and bedding materials. Friday’s Station Dam, Stateline, Nevada Performed engineering geologic and geotechnical investigation of an earthen dam, including static and pseudostatic slope stability analyses, seismic deformation analyses, liquefaction and seismic settlement analyses, seepage analyses and estimates. Blast Monitoring, Lake Sherwood, Ventura County, California Performed pre- and post-blast inspections of residences within proximity to production blasting associated with the excavation of volcanic bedrock for a master planned community. Collected and reported on blast vibrations. Slope Stability Analyses, Tract 4517, Oak Park, Ventura County Performed rippability assessment and kinematic and limit equilibrium slope stability analyses for natural slopes and proposed cut and fill slopes exceeding 150 feet. Sana Monica College, Post-Northridge Earthquake Facilities Expansion: Provided geotechnical engineering services for the design and construction the new Science, Liberal Arts, and Theater buildings facilities following demolition of these structures due to seismic damage. Virginia & Truckee Railroad, Phase III, Storey County, Nevada Performed kinematic and limit equilibrium slope stability analyses for natural slopes and proposed excavations for Phase III of the historic V&T railroad alignment with the Carson River canyon. Performed rock fall analyses and designed rock fall mitigation measures. Town of Minden Water Tank Project, Douglas County, Nevada. Developed a subsurface investigation program which began with fault trenching to determine the presence of Quaternary faults within the water tank footprint, followed by a series of hollow-stem borings to assess the engineering characteristics of the anticipated foundational materials. Performed slope stability, bearing capacity, and settlement analyses in association with the preparation of the final geotechnical report and recommendations. Materials Testing Services, Kingsbury General Improvement District, Nevada Provided materials testing services for roadway rehabilitation project. Included testing and qualification of quarry sources, sampling and laboratory testing of as-placed utility bedding, aggregate base and asphalt, and field density testing. David H. Sarkisian, PE, CEG Storey County Jail Expansion, Storey County, Nevada Performed geologic mapping and geotechnical investigation for proposed expansion of the Storey County Jail. Provided recommendations for mitigation of corrosive tailing soils from historic mining operations. Minden-Gardnerville Sanitation District Effluent Ponds, Douglas County, Nevada. Performed engineering geologic and geotechnical investigation of an earthen pond embankment retaining treated sewer effluent, including static and pseudostatic slope stability analyses, and liquefaction and seismic settlement analyses; provided recommendations for the replacement of an existing 24” diameter effluent pipeline within the embankment. Genoa Fault Investigation, Tahoe Golf Club, Douglas County, Nevada Performed fault trench investigation of active traces of the Genoa fault for development of structural setbacks. Moorpark Highlands Community, Moorpark California Performed geotechnical and engineering geologic investigations for this 500-lot master planned community and golf course. Included landslide and fault investigations, and development of recommendations for mitigation of expansive soils, settlement of deep fills, and hydroconsolidation of deep alluvium. Phoenix Realty Group, Due Diligence Geotechnical Investigations, California Performed due diligence-level geotechnical investigations for real estate acquisitions, provided risk assessments and feasibility assessments of proposed developments. Tract 52790, Sand Canyon Road, Los Angeles County, California Performed geotechnical investigation for 1.5 million cubic yard residential development and related infrastructure. Included limit equilibrium slope stability analyses and landslide mitigation. Del Sur Ranch, Lancaster, California Performed Due Diligence geotechnical investigation for a 2,000-unit development. Addressed subsidence due to groundwater withdrawls/pumping, the potential for ground fissures and sinkholes, and hydroconsolidation of near surface soils. Miscellaneous Street Improvement Projects, Carson City, Nevada Performed pavement surveys and developed recommendations for rehabilitation of pavement sections, followed by material testing during street repairs. US Parkway/Interstate 80 Bridge, Fernley, Nevada Performed geotechnical investigation for bridge design and construction in accordance with Nevada Department of Transportation standards, provided on-call geotechnical consulting services during bridge construction. David Brown Principal QUALIFICATIONS SUMMARY David Brown is a principal at Benchmark Resources who has more than 30 years of experience as a multidisciplinary environmental planner and CEQA and SMARA expert specializing in the acquisition of federal, state, and local agency land use permits and other entitlements. Mr. Brown has served as the principal, project manager, and primary author of scores of environmental documents. Mr. Brown is experienced in a wide range of public works and development projects including general industrial uses, solid waste landfills, mining, transmission lines, and commercial and residential developments. He has managed projects requiring preparation of technical resource evaluation documents, development of design plans, and development of strategies for permitting and environmental compliance. Mr. Brown is a specialist in documentation, regulatory compliance, and permitting for mineral resource development and provides oversight and strategic planning for Benchmark Resources’ environmental review projects. Years of Professional Experience: 30 Recent Projects Responsibilities Areas of Emphasis • Stevens Creek Quarry Reclamation Plan Amendment • SMARA Annual Mine Inspections • Otay Valley Rock Reclamation Plan Amendment • Homestake Tailings Impoundment Facility Application Package and Reclamation Plan Amendment • Carmelita Project Application Package and Initial Environmental Assessment • Teichert Quarry EIR • Contracts • SMARA/Reclamation Plans • Resource Investigations • Quarry and Reclamation Plan Development • Application Development & Technical Report Review • Meeting and Hearing Presentations • Early Environmental Assessment and Constraints Analysis • Quarry and Reclamation Plan Design • Project and Operations Description • Reclamation Planning • Aesthetics and Visual Resources • Hydrology and Water Quality EDUCATION M.S., Geography, University of California, Riverside B.S., Geography, University of California, Riverside PROFESSIONAL AFFILIATIONS American Society for Surface Mining and Reclamation California Construction and Industrial Materials Association (CalCIMA) THIS PAGE INTENTIONALLY LEFT BLANK ATTACHMENT B HOURLY BREAKDOWN OF PROPOSED COSTS COST CATEGORYEXPENSESPrincipal(hrs)Mine Engineer (hrs)Graphics Specialist(hrs)Document Specialist (hrs)Expenses (i.e. airfare, per diem)TASK AND SUBTASK$245 $180 $105 $105 Hours Costs($)Task 1: Prepare and submit notification letter to Operators2.0 2.0 4.0 $570.00 $570.00Task 2: Schedule inspections with Operators2.0 2.0 $360.00 $360.00Task 3: Conduct on site mine inspections10.0 10.0 $1,800.00 $1,800.00Task 4: Review FACE documents and provide recommendations to City for approval or rejection1.0 16.0 4.0 21.0 $3,550.00 $3,550.00Task 5: Complete Final MRRC-11.0 16.0 8.0 4.0 29.0 $4,390.00 $4,390.00Task 6: Prepare and submit FACE approval/rejection letters for Operators4.0 4.0 8.0 $1,140.00 $1,140.00Task 7: Prepare submittal letters for MRRC-1 submittal to DMR and Operators4.0 4.0 8.0 $1,140.00 $1,140.00Task 8: Prepare and submit FAM update letters to Operators4.0 4.0 8.0 $1,140.00 $1,140.00TASK SUBTOTAL 2.0 58.0 8.0 22.0 90.0 $14,190.00 $0 $14,090.00$7,045.00Task 1: Review compliance report submitted by Operator3.0 3.0 $540.00 $540.00Task 2: Compliance review interview with Operator2.0 2.0 $360.00 $360.00Task 3: Provide final compliance review report to City1.0 8.0 2.0 11.0 $1,895.00 $1,895.00TASK SUBTOTAL 1.0 13.0 0.0 2.0 16.0 $2,895.00 $0 $2,795.00Task 1: Review all documentation (mine inspection reports, FACE and FAM documents, Compliance Review Reports).3.0 3.0 $540.00 $540.00Task 2: Conduct meetings with both Operator and City regarding current conditions. 1.0 2.0 3.0 $605.00 $605.00Task 3: Attend Planning Commission Meeting and provide support. Answer any questions regarding the mine site. 12.0 12.0 $2,160.00 $550 $2,710.00TASK SUBTOTAL 1.0 17.0 0.0 0.0 18.0 $3,405.00 $550 $3,855.00$20,740.00ATTACHMENT BCITY OF AZUSA PROPOSAL FOR MINING CONSULTING SERVICESHOURLY BREAKDOWN OF PROPOSED COSTSPROPOSED COSTS($)LABORLABORSUBTOTALMINE INSPECTIONS, REPORTING AND FACE REVIEWBIENNIAL COMPLIANCE REVIEW - AZUSA ROCK (FISH CANYON)PLANNING COMMISSION HEARINGGRAND TOTAL:Cost Per Site: 2515 East Bidwell Street Folsom, California 95630 P: 916.983.9193 | F: 916.983.9194 www.benchmarkresources.net CITY OF AZUSA PROFESSIONAL SERVICES AGREEMENT 1. PARTIES AND DATE. This Agreement is made and entered into this 6th day of November, 2017 by and between the City of Azusa, a municipal corporation organized under the laws of the State of California with its principal place of business at 213 East Foothill Boulevard, Azusa, California 91702 (“City”) and Benchmark Resources, a Limited Liability Company with its principal place of business at 2515 East Bidwell Street Folsom, CA 95630 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.” 2. RECITALS. 2.1 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing mining consultant services to public clients, is licensed in the State of California, and is familiar with the plans of City. 2.2 Project. City desires to engage Consultant to render such services for the Vulcan Materials Azusa Rock Fish Cayon Quarry and Cemex Construction Materials Mine Azusa Quarry project (“Project”) as set forth in this Agreement. 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional mining consulting services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from November 6, 2017 to November 6, 2020, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual written consent, extend the term of this Agreement if necessary to complete the Services. 3.2 Responsibilities of Consultant. 3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Consultant or under its supervision. Consultant will determine Attachment 2 Professional Service Agreement for Benchmark Resources Page 2 of 17 the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit “B” attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant’s conformance with the Schedule, City shall respond to Consultant’s submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of t his Agreement are as follows: David E. Brown and Andrew Hienemann 3.2.5 City’s Representative. The City hereby designates Kurt Christiansen, FAICP Director of Economic and Community Development or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. Consultant shall not accept direction or orders from any person other than the City’s Representative or his or her designee. Professional Service Agreement for Benchmark Resources Page 3 of 17 3.2.6 Consultant’s Representative. Consultant hereby designates David E. Brown and Andrew Hienemann, or his/her designee, to act as its representative for the performance of this Agreement (“Consultant’s Representative”). Consultant’s Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of t he Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants and other staff at all reasonable times. 3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.9 Period of Performance Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Project Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. 3.2.10 Laws and Regulations; Employee/Labor Certifications. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Consultant shall be solely responsible for all costs arising Professional Service Agreement for Benchmark Resources Page 4 of 17 therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 3.2.10.1 Employment Eligibility; Consultant. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time. Such requirements and restrictions include, but are not limited to, examination and retention of documentation confirming the identity and immigration status of each employee of the Consultant. Consultant also verifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement. Consultant shall avoid any violation of any such law during the term of this Agreement by participating in an electronic verification of work authorization program operated by the United States Department of Homeland Security, by participating in an equivalent federal work authorization program operated by the United States Department of Homeland Security to verify information of newly hired employees, or by some other legally acceptable method. Cons ultant shall maintain records of each such verification, and shall make them available to the City or its representatives for inspection and copy at any time during normal business hours. The City shall not be responsible for any costs or expenses related to Consultant’s compliance with the requirements provided for in Section 3.2.10 or any of its sub-sections. 3.2.10.2 Employment Eligibility; Subcontractors, Consultants, Sub- subcontractors and Subconsultants. To the same extent and under the same conditions as Consultant, Consultant shall require all of its subcontractors, consultants, sub-subcontractors and subconsultants performing any work relating to the Project or this Agreement to make the same verifications and comply with all requirements and restrictions provided for in Section 3.2.10.1. 3.2.10.3 Employment Eligibility; Failure to Comply. Each person executing this Agreement on behalf of Consultant verifies that they are a duly authorized officer of Consultant, and understands that any of the following shall be grounds for the City to terminate the Agreement for cause: (1) failure of Consultant or its subcontractors, consultants, sub-subcontractors or subconsultants to meet any of the requirements provided for in Sections 3.2.10.1 or 3.2.10.2; (2) any misrepresentation or material omission concerning compliance with such requirements (including in those verifications provided to the Consultant under Section 3.2.10.2); or (3) failure to immediately remove from the Project any person found not to be in compliance with such requirements. 3.2.10.4 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 3.2.10.5 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, Professional Service Agreement for Benchmark Resources Page 5 of 17 employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.2.10.6 Air Quality. To the extent applicable, Consultant must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD) and/or California Air Resources Board (CARB). Although the SCAQMD and CARB limits and requirements are more broad, Consultant shall specifically be aware of their application to "portable equipment", which definition is considered by SCAQMD and CARB to include any item of equipment with a fuel-powered engine. Consultant shall indemnify City against any fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Consultant, its subconsultants, or others for whom Consultant is responsible under its indemnity obligations provided for in this Agreement. 3.2.10.7 Water Quality. (A) Management and Compliance. To the extent applicable, Consultant’s Services must account for, and fully comply with, all local, state and federal laws, rules and regulations that may impact water quality compliance, including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws, rules and regulations of the Environmental Protection Agency, the State Water Resources Control Board and the Santa Ana Regional Water Quality Control Board; the City’s ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State. (B) Liability for Non-compliance. Failure to comply with the laws, regulations and policies described in this Section is a violation of law that may subject Consultant or City to penalties, fines, or additional regulatory requirements. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and against any and all fines, penalties, claims or other regulatory requirements imposed as a result of Consultant’s non-compliance with the laws, regulations and policies described in this Section, unless such non-compliance is the result of the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers. (C) Training. In addition to any other standard of care requirements set forth in this Agreement, Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them without impacting water quality in violation of the laws, regulations and policies described in this Section. Consultant further warrants that it, its employees and subcontractors will receive Professional Service Agreement for Benchmark Resources Page 6 of 17 adequate training, as determined by City, regarding the requirements of the laws, regulations and policies described in this Section as they may relate to the Services provided under this Agreement. Upon request, City will provide Consultant with a list of training programs that meet the requirements of this paragraph. 3.2.11 Insurance. 3.2.11.1 Time for Compliance. Consultant shall not commence Services under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. 3.2.11.2 Minimum Requirements. Consultant shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Consultant, its agents, representatives, employees or subcontractors. Consultant shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage: (A) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. The policy shall not contain any exclusion contrary to the Agreement, including but not limited to endorsements or provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24 26 or 21 29); or (2) cross liability for claims or suits by one insured against another. (B) Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used including, but not limited to, form CG 2503, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of $1,000,000 per accident for bodily injury or disease. Defense costs shall be paid in addition to the limits. (C) Notices; Cancellation or Reduction of Coverage. At least fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or materially reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another Professional Service Agreement for Benchmark Resources Page 7 of 17 insurance company or companies. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, the City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by the City will be promptly reimbursed by Consultant or the City may withhold amounts sufficient to pay premium from Consultant payments. In the alternative, the City may suspend or terminate this Agreement. 3.2.11.3 Professional Liability. Consultant shall procure and maintain, and require its sub-consultants to procure and maintain, for a period of five (5) years following completion of the Project, errors and omissions liability insurance appropriate to their profession. Such insurance shall be in an amount not less $1,000,000 per claim, and shall be endorsed to include contractual liability. Defense costs shall be paid in addition to limits. 3.2.11.4 Insurance Endorsements. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by the City to add the following provisions to the insurance policies: (A) General Liability. The general liability policy shall include or be endorsed (amended) to state that: (1) using ISO CG forms 20 10 and 20 37, or endorsements providing the exact same coverage, the City of Azusa, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insured with respect to the Services or ongoing and complete operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work; and (2) using ISO form 20 01, or endorsements providing the exact same coverage, the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage. Any excess insurance shall contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of the City, before the City’s own primary insurance or self-insurance shall be called upon to protect it as a named insured. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant’s insurance and shall not be called upon to contribute with it in any way. Notwithstanding the minimum limits set forth in Section 3.2.11.2(B), any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds pursuant to this Section 3.2.11.4(A). (B) Automobile Liability. The automobile liability policy shall include or be endorsed (amended) to state that: (1) the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant’s insurance and shall not be called upon to contribute with it in any way. Notwithstanding the minimum limits set forth in Section 3.2.11.2(B), any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to Professional Service Agreement for Benchmark Resources Page 8 of 17 the parties required to be named as additional insureds pursuant to this Section 3.2.11.4(B). (C) Workers’ Compensation and Employers’ Liability Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers, employees, agents and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Consultant. (D) All Coverages. Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days (10 days for nonpayment of premium) prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents and volunteers. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officials, officers, employees, agents and volunteers, or any other additional insureds. 3.2.11.5 Separation of Insureds; No Special Limitations; Waiver of Subrogation. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents and volunteers. All policies shall waive any right of subrogation of the insurer against the City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, and shall require similar written express waivers and insurance clauses from each of its subconsultants. 3.2.11.6 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Consultant shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 3.2.11.7 Subconsultant Insurance Requirements. Consultant shall not allow any subconsultants to commence work on any subcontract relating to the work under the Agreement until they have provided evidence satisfactory to the City that they have secured all insurance required under this Section. If requested by Consultant, the City may approve different scopes or minimum limits of insurance for particular subconsultants. The Consultant and the City shall be named as additional insureds on all subconsultants’ policies of Commercial General Liability using ISO form 20 38, or coverage at least as broad. 3.2.11.8 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. Professional Service Agreement for Benchmark Resources Page 9 of 17 3.2.11.9 Verification of Coverage. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 3.2.11.9 Reporting of Claims. Consultant shall report to the City, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement. 3.2.12 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Service s, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 3.2.13 Accounting Records. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.3 Fees and Payments. 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “A” attached hereto and incorporated herein by reference. The total compensation shall not exceed ($24,000.00) without written approval of the City Manager. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement. 3.3.2 Payment of Compensation. Consultant shall submit to City a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, Professional Service Agreement for Benchmark Resources Page 10 of 17 through the date of the statement. City shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon. 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City. 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative. 3.3.5 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.4 Termination of Agreement. 3.4.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. 3.4.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance o f Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request. 3.4.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. Professional Service Agreement for Benchmark Resources Page 11 of 17 3.5 Ownership of Materials and Confidentiality. 3.5.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City's express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents. 3.5.2 Subcontractors. Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or its subcontractors, or those provided to Consultant by the City. 3.5.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant. Professional Service Agreement for Benchmark Resources Page 12 of 17 3.5.4 Indemnification. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted. 3.5.5 Confidentiality. All Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. All Documents & Data shall not, without the prior written consent of City, be used or reproduced by Consultant for any purposes other than the performance of the Services. Consultant shall not disclose, cause or facilitate the disclosure of the Documents & Data to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.6 General Provisions. 3.6.1 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: Consultant: David E. Brown Andrew Heinemann Benchmark Resources 2515 East Bidwell Street Folsom, CA 95630 City: City of Azusa 213 E. Foothill Blvd. Azusa, CA 91702 Attn: Kurt Christansen Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.6.2 Indemnification. Professional Service Agreement for Benchmark Resources Page 13 of 17 3.6.2.1 Scope of Indemnity. To the fullest extent permitted by law, Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys fees and other related costs and expenses. Notwithstanding the foregoing, to the extent Consultant's Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 3.6.2.2 Additional Indemnity Obligations. Consultant shall defend, with legal counsel chosen by City, at Consultant’s own cost, expense and risk, any and all claims, actions or other proceedings of every kind covered by Section 3.6.2.1 that may be brought or instituted against City or its directors, officials, officers, employees, volunteers and agents. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, volunteers and agents as party of any such claim, suit, action or other proceeding. Consultant shall also reimburse City for the cost of any settlement paid by City or its directors, officials, officers, employees, agents, or volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City’s attorneys’ fees and costs, including expert witness fees. Co nsultant shall reimburse City and its directors, officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant’s obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials officers, employees, agents, or volunteers. 3.6.3 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California. Venue shall be in Los Angeles County. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Consultant must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Consultant. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the City. 3.6.4 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.6.5 City’s Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project. Professional Service Agreement for Benchmark Resources Page 14 of 17 3.6.6 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties. 3.6.7 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 3.6.8 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subcontractors of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.6.9 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.6.10 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.6.11 No Third Party Beneficiaries. Except to the extent expressly provided for in Section 3.6.7, there are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3.6.12 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6.13 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Professional Service Agreement for Benchmark Resources Page 15 of 17 Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.6.14 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement. 3.6.15 Attorney’s Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action. 3.6.16 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.6.17 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6.18 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties. [SIGNATURES ON NEXT PAGE] Professional Service Agreement for Benchmark Resources Page 16 of 17 CITY OF AZUSA Benchmark Resources By: By: Mayor Name: Attest: Title: City Clerk Benchmark Resources Approved as to Form: Best Best & Krieger LLP By: Name: City Attorney Title: EXHIBIT “A” Professional Service Agreement for Benchmark Resources Page 17 of 17 SCOPE OF SERVICES, SCHEDULE OF SERVICES, COMPENSATION See Attached Document – Benchmark Resources Mining Consulting Services