AGENDA
CITY COUNCIL/ SUCCESSOR
AGENCY TO THE FOUNTAIN
VALLEY AGENCY
FOR COMMUNITY DEVELOPMENT/
FOUNTAIN VALLEY HOUSING AUTHORITY
Closed Session 4:30 p.m.
Study Session Immediately Following Closed Session
Regular Meeting 6:00 p.m.
Tuesday, May 3, 2022
Council Chambers
10200 Slater Avenue
Fountain Valley, CA 92708
http://www.fountainvalley.org
MEETING ASSISTANCE: In compliance with the Americans with Disabilities Act, anyone needing special assistance to participate in a meeting of the government bodies listed herein should contact the City Clerk’s Office at (714) 593-4445. Notification 72 hours prior to the meeting allows the City to make reasonable arrangements to ensure accessibility to the meeting.
AGENDA COMMUNICATIONS: All revised or additional documents and writings related to an item on this agenda provided to all or a majority of the government body members after distribution of the agenda packet, are available for public inspection (1) in the City Clerk’s Office at 10200 Slater Avenue, Fountain Valley, CA 92708 during normal business hours; and (2) in the Council Chambers at the time of the meeting. Unless directed otherwise by a government body listed herein all actions shall be based on/memorialized by the latest document submitted as a late communication.
PUBLIC COMMENTS/PUBLIC HEARINGS: Persons wishing to address th e Cit y Counci lor othe r government body listed complete a speaker card and give it to the City Clerk prior to the public comment period. Requests to speak will not be accepted after the public comment session begins without permission of the Mayor/Chair. Speakers must limit remarks to a total of (3) three minutes and address the City Council through the Mayor. Comments to individuals or staff are not permitted. Scheduled Matters, including Public Hearings: Indicate on the card what item you want to address. Unscheduled Matters: Indicate on the card what subject matter you want to address. Comments must be related to issues that are within the jurisdiction of the governing body listed on the agenda. Pursuant to the Brown Act, the governing body may not enter into discussion regarding items not on the agenda.
CONSENT CALENDAR: All matters listed under the Consent Calendar are considered by the governing bodies listed herein to be routine and will be enacted on simultaneously with one motion without discussion unless separate action and/or discussion is requested by a governing body member, staff, or a member of the public.
PUBLIC HEARINGS: Persons wishing to speak in favor of or in opposition to a proposal are given an opportunity to do so during the public hearing. Those wishing to address a governing body during the hearing are requested to complete the speaker card and submit it to the City Clerk prior to the hearing. If a proposed action is challenged in court, there may be a limitation to raising only those issues raised during the hearing or in written correspondence received by the governing body at or before the hearing.
Note: The Fountain Valley City Council serves as the Successor Agency to the Fountain Valley Agency for Community Development (Successor Agency), the Fountain Valley Housing Authority, and the Fountain Valley Finance Authority. The Actions of the Successor Agency are separate and apart from the actions of the City Council.
ZOOM LINK INFORMATION
• Participants that choose to watch the City Council meeting through zoom are automatically placed in the waiting room and will only be allowed into the Zoom meeting if they request to make a public comment. In order to make a public comment, you will indicate through the chat feature which item you would like to speak on, and click on the “raise hand” icon to let the administrator know you wish to speak. • All participants are muted unless you are requesting to speak, at which time you will be allowed to unmute and make you comment.
• All public comments are allowed up to 3 minutes to speak.
City of Fountain Valley is inviting you to a scheduled Zoom meeting.
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Time: May 3, 2022 04:30 PM Pacific Time (US and Canada) Join Zoom Meeting
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CLOSED SESSION
CALL TO ORDER 4:30 p.m.
PUBLIC COMMENTS (Closed Session matters only)
Persons wishing to speak on a Closed Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period.
• CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code §54957.6.
Agency Designated Representatives: City Manager, Raul Godinez; Deputy City Manager, Maggie Le; Interim Finance Director, Ernestine Jones; Budget Manager, Shannon Espinoza; Human Resources Director, Carrie Hanes; Attorney for the City, Colin Burns.
Employee Organizations: Fountain Valley Municipal Employees Association (Field Services), Fountain Valley General Employees Association (FVGEA), Professional and Technical Employees (P&T)
• CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to paragraph (3) of subdivision (d) of Section 54956.9: (1 potential case)
• Conference With Real Property Negotiators
Pursuant to Government Code Section 54956.8
Property: APN 100-130-65
Negotiators: City Manager Raul Godinez II, Deputy City Manager Maggie Le, Director of Community Development Omar Dadabhoy, Cities of Garden Grove/Fountain Valley/Westminster/Stanton
Negotiating Parties: Mike Barreiro, DAUM Commercial Real Estate Services
STUDY SESSION
CALL TO ORDER Immediately following Closed Session
PUBLIC COMMENTS (Study Session matters only)
Persons wishing to speak on a Study Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period. The City Clerk will call upon those that wish to speak. • Update on County Island Area in Fountain Valley – Presentation by Maggie Le, Deputy City Manager
OPEN SESSION
CALL TO ORDER 6:00 p.m.
INVOCATION
SALUTE TO THE FLAG Mayor Patrick Harper
CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members: Bui, Grandis, Vo, Mayor Pro Tem/Vice Chair Constantine, Mayor/Chair Harper
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS
PRESENTATIONS
• Homeless Update – Presentation by Matt Sheppard, Chief of Police
CITY MANAGER/MAYOR UPDATE
FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
The Unscheduled Matters Public Comments portion will last 15 Minutes at the beginning of the meeting. Any requests to speak on unscheduled matters after the initial 15 minutes, will be heard at the end of the meeting, unless the Mayor approves an extension of this time. If an individual speaks during the First unscheduled matters time period, they do not get to speak at the end of the meeting as well. Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.
PUBLIC COMMENTS (Scheduled Matters Only)
Persons wishing to speak on Agenda item(s) are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period. Each person will be given up to 3 minutes to speak on the entire Consent Calendar, 3 minutes to speak on each item pulled from the consent calendar, and 3 minutes to speak on any agendized item(s) not appearing on the Consent Calendar.
CONSENT CALENDAR
Consent Calendar Items 1-2 will be approved simultaneously with one motion, unless separate action/or discussion is requested.
1. Receive and File the Draft Minutes of the April 19, 2022 Regular City Council Meeting
2. Approve Via Minute Order for the Additional Purchasing Authority for the City Manager
Approve via minute order additional purchasing authority for the City Manager to approve and sign contracts for purchase up to $250,000 for remediation services relating to the Omni Metals Finishing, Inc. fire and approve an additional appropriation of $250,000 to account 100.10.1010353003 to allow for additional professional services expenses related to this incident.
PUBLIC HEARINGS
Each person will have up to 3 minutes to speak on each Public Hearing.
3. Public Hearing - Approval of the FY 2022-23 Community Block Grant (CDBG) Annual Action Plan – Presentation by Ashlyn Newman, Housing Coordinator Page 14 Staff asks that this public hearing be continued to the following date: June 21, 2022.
ADMINISTRATIVE ITEMS
4. Approve the On-Call List of Qualified Contractors for As-Needed Water Well Etc Services and Award 3 contracts to the Qualified Contractors for an Amount Not to exceed $2,000,000 per Contract for a 3-Year Term with Option for 1 2-Year Term Extension – Presentation by HyeJin Lee, Public Works Director Page 15 Staff recommends that City Council approve alternative no. 1, which is Approve the On-Call List of Qualified Contractors for As-Needed Water Well, Pump and Maintenance, Repair and Rehabilitation Services and Award Three (3) contracts to the Qualified Contractors for an Amount Not to Exceed $2,000,000 per Contract for a Three-Year Term with an Option for One (1) Two-Year Term Extension.
5. Approve Lease Agreement with Outfront Media, LLC for an Electronic Reader Board Sign with Two Displays to be Located at 10955 Ellis Avenue – Presentation by Maggie Le, Deputy City Manager Page 191
It is recommended that the City Council approve Alternative No. 1 with a lease agreement between the City of Fountain Valley and Outfront Media, LLC for a portion of City-owned property located at 10955 Ellis Avenue.
COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION
CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.
CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL
COMMENTS
ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR
AGENCY/HOUSING AUTHORITY
The next Regular Meeting of the Fountain Valley City Council is May 17, 2022 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.
MINUTES OF THE
CITY COUNCIL/ SUCCESSOR AGENCY TO THE FOUNTAIN
VALLEY AGENCY
FOR COMMUNITY DEVELOPMENT/ FOUNTAIN VALLEY
HOUSING AUTHORITY
Closed Session 4:30 p.m.
Study Session Immediately Following Closed Session
Regular Meeting 6:00 p.m.
Tuesday, April 19, 2022
Council Chambers
City Council Member Glenn Grandis will be at the following location:
Fort Lauderdale Marriott North
Room #525
6650 North Andrews Ave.
CLOSED SESSION
CALL TO ORDER 4:31 p.m. Ted Bui Arrived at 4:45 p.m.
PUBLIC COMMENTS (Closed Session matters only)
None
CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to paragraph (3) of subdivision (d) of Section 54956.9: (1 potential case)
No reportable action
CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (1 potential case.)
No reportable action
STUDY SESSION
CALL TO ORDER 5:00 p.m.
PUBLIC COMMENTS (Study Session matters only)
None
Fountain Valley Crossing Specific Plan Marketing Update – Presentation by Maggie Le, Deputy City Manager
Maggie Le presented marketing plan update for the Fountain Valley Crossings Specific Plan.
OPEN SESSION
CALL TO ORDER 6:01 p.m.
INVOCATION Council Member Ted Bui
SALUTE TO THE FLAG Mayor Pro Tem Kim Constantine
CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members: Bui, Grandis, Vo, Mayor Pro Tem/Vice Chair Constantine, Mayor/Chair Harper All members were present. Council Member Glenn Grandis participated via Zoom.
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS
None.
CITY MANAGER/MAYOR UPDATE
City Manager Raul Godinez II introduced Community Development Director Omar Dadabhoy and Interim Finance Director Ernestine Jones. Mayor Patrick Harper gave a recap of the CPRS District 10 Awards and Installation Banquet at the Recreation Center and the Easter Egg Hunt at the Sports Park.
PRESENTATIONS
Certificate of Recognition presented to New Fountain Valley School District Superintendent Katherine Stopp
Mayor Harper presented Certificate to Katherine Stopp
Certificate of Kindness Recognition presented to Brandon Dotts & Stephen Bayer Mayor Harper presented Certificate of Kindness to Brandon and Stephen Certificate of Recognition presented to the 2022 Miss Fountain Valley Bianca Singer Mayor Harper presented Certificate to Bianca. Sandi Licata informed public that Bianca will be competing in Miss CA in June.
Donate Life Month Proclamation
Mayor Harper presented the Proclamation and Rita Jackson accepted.
Jynene Johnson presented on Community Service Day
Jynene gave a brief presentation on Community Service Day events and invited the public to join
Baby Whale Stella Art Presentation (Partnership with Wyland Foundation and MWD for good water stewardship to promote sustainable ecosystem) and Introduction of Bob McVicker, representative of MWDOC
HyeJin Lee invited Marci Vahey, Steve Creech and Bob McVicker to say a few words about the Baby Whale Stella Art Project.
FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Tracy Cameron, Melanie Hagstrom, Anna Katsuki, Nora BK Webb, Charlyn Moltane, Cheryl Brothers Police Chief Matt Sheppard gave a brief Staff Comment on an unscheduled matter item – Homelessness
PUBLIC COMMENTS (Scheduled Matters Only)
Ruby Lee, Kimberly Ho, Jaye Towne – Via Zoom
CONSENT CALENDAR
1. Receive and File the Draft Minutes of the April 5, 2022 regular City Council Meeting ACTION: Move to Receive and File the Draft Minutes of the April 5, 2022 Regular City Council Meeting
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None
2. Second Reading and Adoption of an Ordinance Approving Zoning Map Amendment 433 and an Ordinance approving Code Amendment 21-01 for the Slater Avenue Mixed-Use Project located at 10201, 10221, and 10231 Slater Avenue ACTION: Adopt the attached Ordinances of the City Council of the City of Fountain Valley approving Zoning Map Amendment 433 to change the zoning map designation from C1 – Local Business to MU-1 – Mixed-Use 1 District for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue) and approving Code Amendment 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards,
exceptions, and definitions for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue).
MOTION: Vo SECOND: Grandis
AYES: Bui, Grandis, Vo
NOES: Constantine, Harper
ABSENT: None
ABSTAIN: None
PUBLIC HEARINGS
3. Adopt A Resolution of Intention and Introduction and First Reading of an Ordinance to Approve an Amendment to The Contract Between the Board of Administration California Public Employees’ Retirement System and The City Council of the City of Fountain Valley
Public Hearing Opened: 7:32 p.m.
No Public Comments
Public Hearing Closed at 7:32 p.m.
ACTION: Adopt A Resolution of Intention and Introduction and First Reading of an Ordinance to Approve an Amendment to The Contract Between the Board of Administration California Public Employees’ Retirement System and The City Council of the City of Fountain Valley
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None
COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION
Mayor Pro Tem Constantine noted that the Fountain Valley Crossings Specific Plan allows the Planning Director to have the final say on development projects for that area, Fountain Valley Crossings and proposed that City Council have a say about the development of this area. No second.
Mayor Pro Tem Constantine proposed Public Noticing for development projects of 4-stories and above be addressed with postcard (notice) sent out to the whole City. Council Member Glenn Grandis second.
Mayor Pro Tem Constantine noted that currently, a violation of temporary non-commercial speech signs (also known as campaign signs) go to a commercial property owner and requested a second to get this changed in the absolute best interest of this community and instead have the City go
directly to the appropriate candidate to issue a warning, $100 fine, $200 fine, then subsequent $500 fine for each sign in violation of the ordinance. No second.
Mayor Pro Tem Constantine proposed tighten up our ordinance on Temporary non-commercial speech signs (also known as campaign signs) and to address nonresidential zones in which we currently allow 1 temporary non-commercial speech sign per 100 feet of arterial street frontage in nonresidential zones. No second.
CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Colleen – Via Zoom
CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL
COMMENTS
Council Member Bui
Council Member Vo
Council Member Grandis
April 14 Attended Ribbon Cutting /Network at Night Event at Carlito’s Diner April 16 Attended the Easter Egg Hunt at the Sports Park and volunteered with the Kiwanis at their Pancake Breakfast
Mayor Pro Tem Constantine
April 12 Attended the Rotary Club Meeting, then viewed the OC Board of Supervisors Meeting on the County’s website, then attended Special City Council Meeting April 13 Attended the Planning Commission Meeting
April 14 Participated in the OC Vector Control Meeting, then attended Ribbon Cutting /Network at Night Event at Carlito’s Diner, then attended the Rancho La Siesta Evening Social April 16 Attended the Easter Egg Hunt and the Sports Park, then attended the Green Valley Easter Egg-citement Event on the Green Valley South Greenbelt, then attended the Rotary “Most Improved Student” Meeting at the Senior Center April 19 Viewed “The OC” Press Conference with OC Supervisors Chaffee and Wagner on the County’s Website
Mayor Harper
April 7 Attended the CPRS District 10 Awards
April 11 Attended the OCTA Board Meeting
April 12 Attended the Special City Council Meeting
April 13 Attended the OC San Admin Committee Meeting
April 17 Attended the Easter Egg Hunt at the Sports Park
ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR
AGENCY/HOUSING AUTHORITY
Mayor Harper adjourned the meeting at 7:58 pm to the next Meeting of the Fountain Valley City Council on May 3, 2022 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.
________________________________________________________________________________________________________________________________ Patrick Harper, Mayor
Attest:
___________________________
Rick Miller, City Clerk
CITY OF FOUNTAIN VALLEY
CITY COUNCIL
COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 3, 2022
Members of the City Council
SUBJECT: Approve Via Minute Order for the Additional Purchasing Authority for the City Manager to Approve and Sign Contracts for Purchase Up to $250,000 for Remediation Services Relating to Omni Metals Finishing, Inc. Fire and Appropriate Additional $250,000 for Professional Services Expense EXECUTIVE SUMMARY:
Staff asks the Council approve via minute order additional purchasing authority for the City Manager to approve and sign contracts for purchases up to $250,000 for remediation services relating to the Omni Metals Finishing, Inc. fire.
DISCUSSION:
A fire at Omni Metals Finishing, Inc., located at 11665 Coley River Circle, occurred on April 20, 2022. As a result of the fire extinguishment efforts, water runoff including hazardous materials was contained with sand on the Coley River Circle. Within hours of the fire, a third party vendor began remediation of the spill.
By April 22, 2022, approximately 48-hours after the incident occurred, all public areas along Newhope Street, the full length of Coley River Circle, and the storm drain facility extending to Euclid Street and Grace Avenue were declared safe for both public pedestrian and vehicular traffic by the Orange County Public Health Department and the third party clean up vendor.
Additional remediation and soils testing continues. The cost of the remediation and testing is pending.
The City Manager is authorized to sign City contracts of $50,000 or less. (FVMC
2.36.110(a).) When there is a declared local emergency, the City Manager is not subject to the $50,000 limitation and obtain, and bind the City to pay for, supplies and services necessary to respond to the local emergency. (FVMC 2.57.060(b).) A local emergency has not been declared for the Omni Metals Fire as Fire Crews, Public Works, and other staff including partner agencies and the third party vendor were quickly able to respond and contain the situation.
City Council Request
Approve via Minute Order for the Additional Purchasing Authority for City Manager May 3, 2022
Though the fire has been extinguished and contaminants contained, additional subsurface remediation and testing is required. The City will seek reimbursement from Omni Metals Finishing, Inc.
In the event further testing or factual investigation results in the necessity to declare a local emergency, the City Manager could declare one as appropriate, activate the EOC, and take emergency actions as reasonable and necessary to address the emergency. In such case, the Council will be briefed on the local emergency and asked to ratify the same at the next City Council meeting after an emergency is declared.
FINANCIAL ANALYSIS
The Interim Finance Director concurs for the additional purchasing authority for the City Manager to approve and sign contracts for purchases up to $250,000. The City will seek reimbursement from Omni Metals Finishing, Inc.
APPROPRIATION
Staff recommends that City Council approve an additional appropriation of $250,000 to account 100.10.1010353003 to allow for additional professional services expenses related to this incident.
ATTORNEY REVIEW:
The Attorney for the City concurs in the recommended action.
ALTERNATIVES:
Alternative No. 1: Approve via minute order additional purchasing authority for the City Manager to approve and sign contracts for purchase up to $250,000 for remediation services relating to the Omni Metals Finishing, Inc. fire and approve an additional appropriation of $250,000 to account 100.10.1010353003 to allow for additional professional services expenses related to this incident.
Alternative No. 2: Do not approve the additional purchasing authority.
RECOMMENDATION:
Staff recommends Alternative 1: Approve via minute order additional purchasing authority for the City Manager to approve and sign contracts for purchases up to $250,000 for remediation services relating to the Omni Metals Finishing, Inc. fire and approve an additional appropriation of $250,000 to account 100.10.1010353003 to allow for additional professional services expenses related to this incident.
Prepared By: Maggie Le, Deputy City Manager
City Council Request
Approve via Minute Order for the Additional Purchasing Authority for City Manager May 3, 2022
Fiscal Review by: Ernestine Jones, Interim Finance Director/Treasurer Approved By: Raul Godinez II, Interim City Manager
CITY OF FOUNTAIN VALLEY
CITY COUNCIL
COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 3, 2022
Members of the City Council
SUBJECT: Public Hearing - Approval of the FY 2022-23 Community Block Grant (CDBG) Annual Action Plan
"Staff asks that this public hearing be continued to the following date: June 21, 2022." Prepared by: Ashlyn Newman, Housing Coordinator
CITY OF FOUNTAIN VALLEY
CITY COUNCIL
COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 3, 2022
Members of the City Council
SUBJECT: Approve the On-Call List of Qualified Contractors for As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services and Award Three (3) Contracts to the Qualified Contractors for an Amount Not to exceed $2,000,000 per Contract for a Three-Year Term with an Option for One (1) Two-Year Term Extension
EXECUTIVE SUMMARY:
The City of Fountain Valley operates six (6) potable water wells located within the Orange County Water District (OCWD) Groundwater Basin. Water wells, like other distribution system assets, require periodic maintenance and rehabilitation. Four (4) of the six (6) wells require maintenance and rehabilitation while the remaining two (2), Well No. 10 and Well No. 11, are shut down and inoperable.
In 2018, an attempt was made to pull the pump for Well No. 6 to perform a preliminary video inspection and determine the specific rehabilitation needs of the well. The pump was stuck and unable to be pulled. The well is currently in operation, but is in critical need of rehabilitation. Well No. 8 is currently operational and reliable, but needs assessment and recommendations for rehabilitation. Well No. 9 is currently operational and reliable, but needs a condition assessment to explore options to reduce sand production, the sand of which impairs water quality. It was discovered that the new filter pack/beads for Well No. 10 have entered the effluent system pipe and the well was shut down in July 2020.
Well No. 11 is currently shut down and inoperable. Well No.12 is currently operational and reliable, but needs a condition assessment to explore options to reduce sand production.
To address the operational needs of these water wells, the City issued a request for qualifications from qualified and experienced contractors via the publicly advertised portal, PlanetBids. Request for Qualifications (RFQ) 21-023 As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services was posted on PlanetBids on February 4, 2022. There were fourteen (14) prospective bidders. On March 8, 2022 the City received three (3) qualifications proposals from qualified contractors for as-needed water well, pump and motor maintenance, repair and rehabilitation services.
Council Action Request
Well Maintenance RFQ
May 3, 2022
The three companies who submitted qualifications to the City are: General Pump Company, Layne Christensen Company, and Weber Water Resources CA, LLC.
The City expects that the total value of this project will not exceed $6,000,000 during the three-year contract term. Staff recommends the award of three (3) contracts to the qualified contractors for an amount not to exceed $2,000,000 per contract for a three-year term. The City, at its option and with Contractor concurrence, may extend the term of the contract for one (1) additional two-year extension on the same terms and conditions only if the Contractor demonstrates superior performance in providing services.
Staff recommends that the City Council approve the On-Call List of qualified contractors for As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services and award contracts to the qualified contractors for an amount not to exceed $2,000,000 per contract for a three-year term with an option for one (1) two-year term extension. The qualified contractors are General Pump Company, Layne Christensen Company, and Weber Water Resources CA, LLC.
DISCUSSION:
The City of Fountain Valley operates six (6) groundwater wells that produce approximately 6,500 to 10,000 AF of drinking water annually from the OCWD Groundwater Basin. Water produced from the groundwater wells is the least expensive water resource that the City can deliver to the residents of Fountain Valley. Unlike the distribution system assets which are visible from the ground (i.e., water valve cans, hydrants, air-vacuum release assemblies, water meters, etc.), water wells are all underground, often as deep as 1,000 feet or more below ground. Although the wellhead appurtenances and equipment are well maintained by the water division crew, subsurface well casings, pumps, and shafts require specialized contractors, substantial equipment, and the use of a crane to lift heavy pumps and motors. The wells are reaching their critical service life and need substantial rehabilitations and troubleshooting to ensure reliable water production and protect water quality. As stewards of our water system which supplies drinking water to our residents and businesses, staff actively pursues the most responsible path to manage these resources wisely and efficiently.
Currently, four (4) of the City’s wells are listed in the Capital Improvement Program (CIP) for rehabilitation with two (2) of these wells being down and out of service. One well has unique rehabilitation needs due to a blockage in the well casing and another due to a possible casing liner failure that needs further investigation.
Well No. 6
This well was drilled in 1974 to a depth of 1,150 feet and was last fully rehabilitated in 2008. In 2018, an attempt was made to pull the pump to perform a preliminary video inspection and determine the specific rehabilitation needs of the well. The pump was
Council Action Request
Well Maintenance RFQ
May 3, 2022
stuck and unable to be pulled. Therefore, alternative methods need to be developed. The well is still in operation but is in critical need of rehabilitation.
Well No. 8
This well was drilled in 1977 to a depth of 920 feet and was last rehabilitated in 2007.
The well is currently operational and reliable but needs assessment and recommendations for rehabilitation.
Well No. 9
This well was drilled in 2009 to a depth of 1,114 feet and was last rehabilitated in 2017.
The well is currently operational and reliable but needs a condition assessment to explore options to reduce sand production, which impairs water quality.
Well No. 10
This well was drilled in 1987 to a depth of 1,100 feet and was last rehabilitated in 2018 with a new casing liner. It was discovered that the new filter pack/beads have entered the effluent system pipe and the well was shut down in July 2020. Further testing and analysis have been completed on this well and a plan put into place. It now needs to have the casing cleaned and the pump was reinstalled along with continued monitoring and analysis.
Well No. 11
This well was drilled in 1987 to a depth of 1,027 feet and was last fully rehabilitated in 1994. In 2019, the pump was pulled to perform a video inspection to determine the specific rehabilitation needs of this well. When the pump was pulled, it was found that the pump strainer was separated and sections were missing. The well video inspection found an unknown blockage at 280 feet down. Utilizing specialized tools, the blockage was removed and determined to be pieces of the strainer along with well-level-sounding transducer leads. The well was again videoed and another blockage was found at 669 feet down. Similar attempts to remove this blockage by two separate contractors proved unsuccessful. This well requires further condition assessment and recommendations for rehabilitation methods. The well is currently shut down and inoperable.
Well No. 12
This well was drilled in 1999 to a depth of 1,090 feet and was last rehabilitated in 2017.
The well is currently operational and reliable but needs a condition assessment to explore options to reduce sand production.
On February 4, 2022, the City issued a RFQ for qualified and experienced contractors, per the City’s Municipal Code and Purchasing Policy (FVMC chapter 2.30.020) to provide
Council Action Request
Well Maintenance RFQ
May 3, 2022
as-needed and emergency on-call maintenance, repair and rehabilitation services for the City’s water wells, pumps and electric motors. This request for qualifications is intended for contractors that possess a valid Class A – General Engineering license and a Class C-57 – Well Drilling license, as well as a minimum of 5 years in business performing maintenance, repair, and rehabilitation services similar to the scope of work required.
Projects may include, but are not limited to: the repair, removal, installation, rehabilitation, and replacement of pumps, pump bowls, impellers, pump shafts, and bearings, stuffing box and packing, motors, well columns, well casings, discharge heads, suction pipes, base plates, lube assembly, level transmitters, etc.; electric motor maintenance and repair; well rehabilitation, cleaning, and disinfection; and the furnishing of parts and labor in conjunction with such work. The selected contractor(s) shall provide water well, pump and motor maintenance, repair and rehabilitation services on an as-needed and on-call basis in accordance with the terms of the Contract and the General and Special Provisions. The Contract will have an initial term of three (3) years, with the option for one (1) two-year extension.
On March 8, 2022, the City received three (3) qualifications proposals from qualified contractors for as-needed water well, pump and motor maintenance, repair and rehabilitation services. The three (3) companies that submitted qualifications to the City are:
1. General Pump Company
2. Layne Christensen Company
3. Weber Water Resources CA, LLC.
A detailed summary of tasks and unit prices list is included in the proposals (listed as attachments).
After careful evaluation, Staff recommends all three (3) qualified contractors for the OnCall List for As-needed Water Well, Pump and Motor Maintenance, Repair, and Rehabilitation Services based on the total combined score and their areas of expertise.
The three (3) contractors selected have completed similar work at other Orange County municipalities and have proven to be reliable and reputable contractors.
It should be noted that the City reserves the right to cancel any of these contracts for any reason, put them on hold, or move on to a different contractor. Executing an on-call contract with the City does not guarantee that a contractor will receive work during the on-call period. It is the intent of the Public Works Department to spread the work amongst the firms and award specific projects to firms that are most suited and available to complete the specific type of work.
PROCUREMENT & FINANCIAL ANALYSIS
In accordance with the City’s Purchasing Policies, The City of Fountain Valley issued a RFQ for As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation
Council Action Request
Well Maintenance RFQ
May 3, 2022
Services on February 4, 2022. The RFQ was publicly advertised through Planetbids with an invitation through the City’s website. Fourteen (14) companies showed interest in the RFQ and downloaded the RFQ. The RFQ closed on March 8, 2022, and three (3) Specialty companies submitted proposals. Three (3) experts reviewed the proposals based on Qualifications and Experience, Understanding of the Project Components, Relevant Project Experience, References, and Cost comparison. All three (3) proposals satisfied the needs of the City in all areas and the hourly cost of staff was comparable.
Due to only three (3) companies submitting proposals and the need for well maintenance throughout the next three (3) years, it is recommended to have contracts with the three companies.
In return, the City will issue projects in one of two ways depending on 1) specialized well rehabilitation work and/or 2) standard well maintenance work. 1) Specialized Well Rehabilitation Work – The City will provide all Contractors with a scope of work and desired schedule, and the Contractors will be invited to submit work plans, proposed staff, hours and schedule. The City construction manager will review the work plans with the City Project Manager and issue an addendum/Purchase Requisition to the highest quality and qualified contractor response based on the qualifications of staff, schedule & cost, and work plan. 2) Standard Well Maintenance Work – City will review the amounts of past task orders and assign task orders to provide work fairly to the Contractors on the as-needed agreements; or on a rotational basis keeping fairness in mind as the top-ranked firms are presumed or expected to be highly qualified.
Staff recommends that the City Council approve the On-Call List of qualified contractors for As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services and award contracts to the qualified contractors for an amount not to exceed $2,000,000 per contract for a three-year term with an option for one (1) two-year term extension.
ATTORNEY REVIEW:
The City Attorney has reviewed and approved the On-Call contract agreements for Asneeded Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services to General Pump Company, Layne Christensen Company and Weber Water Resources CA, LLC.
ALTERNATIVES:
Alternative No. 1: Approve the On-Call List of qualified contractors for As-Needed Water Well, Pump and Motor Maintenance, Repair and
Rehabilitation Services and award three (3) contracts to the qualified contractors for an amount not to exceed $2,000,000 per contract for a three-year term with an option for one (1) two-year term extension.
Council Action Request
Well Maintenance RFQ
May 3, 2022
Alternative No. 2: Do not approve the On-Call List of qualified contractors for AsNeeded Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services and award three (3) contracts to the qualified contractors for an amount not to exceed $2,000,000 per contract for a three year term with an option for one (1) two-year extension and direct staff to re-advertise a new request for proposal. This is not recommended, as General Pump Company, Layne Christensen Company, and Weber Water Resources CA, LLC provided a
competitive cost proposal and proposed the most highly qualified and experienced contractors. Staff believes re-advertising will not result in a higher quality proposal or a lower cost to the City.
RECOMMENDATION:
Staff recommends that City Council approve Alternative No. 1, which is Approve the OnCall List of Qualified Contractors for As-Needed Water Well, Pump and Maintenance, Repair and Rehabilitation Services and Award Three (3) contracts to the Qualified Contractors for an Amount Not to Exceed $2,000,000 per Contract for a Three-Year Term with an Option for One (1) Two-Year Term Extension.
Prepared by: Kyle Hilton, Associate Engineer
Reviewed by: Mark Sprague, Field Services Manager
Approved by: Hye Jin Lee, Director of Public Works
Fiscal Review by: Ernestine Jones, Interim Finance Director/Treasurer Approved by: Raul Godinez, Interim City Manager
Attachments:
1. RFQ 21-023 As-Needed Well Maintenance Services
2. General Pump Company Contract
3. Layne Christensen Company Contract
4. Weber Water Resources CA, LLC Contract
5. General Pump Company Proposal
6. General Pump Company Unit Prices
7. Layne Christensen Company Proposal
8. Layne Christensen Company Unit Prices
9. Weber Water Resources CA, LLC Proposal
10.Weber Water Resources CA, LLC Unit Prices
City of Fountain Valley
Electronic submittal of Request for Qualifications
RFQ 21-023
AS-NEEDED WATER WELL, PUMP AND MOTOR
MAINTENANCE, REPAIR AND REHABILITATION SERVICES
Questions Deadline:
4:00 p.m., PST, Wednesday, February 23, 2022
Submittal Due Date:
4:00 p.m., PST, Tuesday, March 8, 2022
City Contact:
Amanda McCall, Mgmt. Analyst / Purchasing Officer
email: [email protected]
Phone No. (714) 593-4413
CITY OF FOUNTAIN VALLEY’S ELECTRONIC BIDDING SITE, PLANETBIDS *Read Upload Instructions*
for important information on the best time to upload qualifications (Issued February 4, 2022)
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 1 | Page
BACKGROUND INFORMATION
Background
The City of Fountain Valley is a general law city that has operated under the council-manager form of government since its incorporation in 1957. The City is located in Orange County, California, roughly 30 miles southeast of Los Angeles and 90 miles northwest of San Diego. The City has an estimated population of 56,747 and has a land area of 9.75 square miles.
Fountain Valley is a full-service city that provides a wide range of municipal services that help keep the City “A Nice Place to Live.” These services include, but are not limited to: police and fire protection; water and sewer utilities; infrastructure and maintenance services; environmental protection; building and safety; land use planning and zoning; housing and community development; and recreational activities.
The City currently operates and maintains two (2) reservoirs and pump stations, six (6) potable water wells and one (1) Metropolitan water connection.
Purpose
The City is pleased to issue this Request for Qualifications (RFQ) for qualified and experienced contractors to provide as-needed and emergency on-call maintenance, repair and rehabilitation services for the City’s water wells, pumps and electric motors. This request for qualifications is intended for contractors that possess a valid Class A – General Engineering license and a Class C-57 – Well Drilling license, as well as a minimum of 5 years in business performing maintenance, repair and rehabilitation services similar to the scope of work required. Projects may include, but are not limited to: the repair, removal, installation, rehabilitation and replacement of pumps, pump bowls, impellers, pump shafts and bearings, stuffing box and packing, motors, well columns, well casings, discharge heads, suction pipes, base plates, lube assembly, level transmitters, etc.; electric motor maintenance and repair; well rehabilitation, cleaning and disinfection; and the furnishing of parts and labor in conjunction with such work. The selected Contractor(s) shall provide water well, pump and motor maintenance, repair and rehabilitation services on an asneeded and on-call basis in accordance with the terms of the Contract and the General and Special Provisions. The Contract will have an initial term of three (3) years, with the option for one (1) two-year extension.
Qualifications, prepared according to the following detailed instructions, must be received via PlanetBids no later than 4:00 p.m., Pacific Standard Time, Tuesday, March 8, 2022
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 2 | Page
PROJECT / SCOPE OF WORK OVERVIEW
The City of Fountain Valley is seeking qualified and experienced contractors to provide maintenance, repair and rehabilitation services for the City of Fountain Valley’s (City’s) water wells, pumps and electric motor assemblies on an on-call, as-needed, time-and-materials basis for a period of three (3) years, with the option for one (1) additional two-year extension. The City’s intent is to enter into contract with one or two contractors for the provision of these services.
The Contractor shall be a licensed Class A (General Engineering) and Class C-57 (Well Drilling) Contractor in the State of California and will be responsible for obtaining any and all necessary permits required by the work performed. The Contractor is required to have a minimum of five (5) years in business performing potable water well maintenance services similar to the scope of work required by the City of Fountain Valley.
The City expects that the total value of this project will not exceed $2,200,000 during the three year contract term (Year 1 estimated to be $1,200,000; Year 2 estimated to be $500,000; Year 3 estimated to be $500,000). The City, at its option and with Contractor concurrence, may extend the term of the contract for one (1) additional two-year extension on the same terms and conditions only if the Contractor demonstrates superior performance in providing services.
Any and all performance pursuant to this Contract shall be on an “on-call” or “as-needed” basis.
Any tasking shall be initiated solely by the City. Execution of a contract by the City does not in any way guarantee that any tasking or request for on-call services will be issued to any Contractor.
Moreover, execution of a contract by the City shall not entitle the Contractor to any form of payment or compensation from the City without first having been issued tasking or a request for services from the City.
The Contractor shall respond to emergency repairs within 24 hours and within 48 hours for nonemergency repairs. The Contractor shall have the ability to mobilize in less than 72 hours after initial response and perform the needed work as requested by the City.
Services may include, but are not limited to, repair, removal, installation, rehabilitation and replacement of pumps, pump bowls, impellers, pump shafts and bearings, stuffing box and packing, motors, well columns, well casings, discharge heads, suction pipes, base plates, lube assembly, level transmitters, etc., and the furnishing of parts and labor in conjunction with such work. All work shall be performed in accordance with the General and Special Provisions and the current Standard Specifications per the following:
• National Electrical Manufacturers Association (NEMA) Standards • National Sanitation Foundation (NSF)/ANSI Standard 61 • Department of Water Resources (DWR) Bulletin Nos. 74-81 and 74-90 • American Water Works Association (AWWA) A100-15, E103-15, C654-13, and any other applicable standards
• California Well Standards (Well Standards)
• California Waterworks Standards, Title 22, CCR, Div. 4, Chapter 16 (CAWS) • Standard Specifications for Public Works Construction (Green Book) • American Society of Mechanical Engineers (ASME) Standards • National Electric Code (NEC)
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 3 | Page
Although the City is attempting to identify the services that may be required, this should not necessarily limit the Contractor in the development of a scope it believes is necessary to meet the City’s goals and objectives.
The Contractor shall furnish all material, labor, equipment and supervision to perform the maintenance, repair and rehabilitation services as requested by the City. The Contractor shall perform such work in a thorough and professional manner.
The Contractor shall secure the site and its equipment at all-times throughout the duration of work.
The Contractor shall also be responsible for discharging of treated water, as needed during and after work, into an appropriate drainage system in a manner that complies with NPDES regulations and permits.
Currently, the City’s water system consists of six (6) operational wells; specifically composed of 6 vertical turbine pumps and motors each with a water pre-lube. Additionally, there are two (2) pump stations, one consisting of three (3) vertical turbine pumps and motors and the other one consisting of four (4).
All wells are powered by electric motors ranging from 250 hp to 500 hp. All pump station booster pumps are powered by electric motors ranging from 125 hp to 150 hp. Most all of these motors are inverter duty. The Contractor shall be required to service these motors periodically at the City’s request. These services may include, but are not limited to, removal of motor, clean, dip, bake, rewind, balance, voltage testing, replace bearings, re-installation, meggar, core loss test, start-up and vibration analysis. All electric motors in need of repair work shall be transported by the Contractor to Sulzer Electro-Mechanical Services (US) Inc. in Colton, CA (formerly Brithinee Electric) as the approved motor overhaul facility or an approved equal EASA Accredited Member facility for repair, and returned and reinstalled when repairs are completed.
The City may also have the need to rehabilitate the existing wells when there is a decrease in capacity, bacteriological problem, or other well production issue. The Contractor shall be required to provide appropriate tools, equipment, materials, and personnel to successfully complete the cleaning and disinfection of the wells. Prior to commencement of work, the Contractor and the City shall discuss, review, and evaluate well records to recommend possible treatment methods depending on the condition of each well. At the City’s request, the Contractor shall submit to the City a detailed proposal, including the type of treatment, chemical uses, quantity, duration, manhours, and cost, for final approval. The Contractor, or its approved subcontractors, must be able to perform all of the well rehabilitation activities listed below, at a minimum, and provide the miscellaneous items, appurtenances and devices incidental to or necessary for a sound, secure, complete and functional installation.
• Removal and re-installation of the permanent pump
• Downhole dual camera video surveying
• Casing Inspection Thickness Measurement logging
• Chemical treatment
• Wire brushing
• Bailing and disposal of bailed materials
• Air-jetting
• Descaling
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 4 | Page
• Mechanical redevelopment (single and dual airlifting and swabbing) • Well and permanent pump disinfection in accordance with ANSI/AWWA C654-13 • Installation and removal of test pump and engine for development and production testing • Spinner (dynamic and static) surveying
• Well casing lining and patching
• Bacterial Activity Reaction Test (BART)
• Casing sidewall sampling
Under the terms of the Contract, the work shall consist of furnishing all labor, materials, tools, equipment, appurtenances and incidentals required to perform the maintenance, repair and rehabilitation services and in keeping with the highest standards of quality and performance.
Public Work/DIR Registration
Notice is provided pursuant to Labor Code Section 1781 that this is a “public work” as defined in Chapter 1, Part 7, Division 2 of the Labor Code, to which Section 1771 applies. Contractor shall pay prevailing wages, unless exempt. All contractors and subcontractors working on this job shall be registered with the Department of Industrial Relations. See the Sample Contract for details.
Qualifications shall not be accepted if the contractor and all subcontractors are not registered with the Department of Industrial Relations. City shall file a DIR Form 100 upon awarding a job. (Labor Code, § 1725.5.) No contract shall be awarded to Contractor unless Contractor and all its subcontractors are registered with the Department of Industrial Relations. (Labor Code, § 1725.5.) This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 5 | Page
CONTENT OF RESPONSES
Responses submitted to the City should include the following components:
1. Cover Letter
a. A cover letter signed by the individual authorized to represent / negotiate on behalf of the responding contractor.
2. Contractor Qualifications
The information requested in this section must describe the qualifications and experience of the contractor and key staff in performing similar projects, preferably within the past seven (7) years in Orange County/Los Angeles County, in order to demonstrate competence to perform these services. Information shall include:
a. An overview of the contractor’s qualifications and experience, which should include length of time that contractor has provided the services being requested in this Request for Qualifications.
b. The key personnel that have participated on named projects and their specific responsibilities and years of experience with respect to this scope of work. c. An organization chart which lists all key individual(s) who will be working on projects and indicate the function that each will perform. d. The resume(s) / background of all key individuals who will be working directly and regularly with the City, as well as their roles. Clearly identify the project manager/lead who will be responsible for the day-to-day management of the contract, as well as an alternate.
e. An outline of current relevant projects being performed in the southern California region. Responses should demonstrate specific details relating to items as specified in the scope of work.
f. If using subcontractors, list all subcontractors that may contribute to the project and their relevant experience and qualifications.
g. At least three (3) municipal client references, preferably Orange County/Los Angeles County Public Agencies, that have received similar services from your company. Provide the following information for each reference to allow the City to easily contact them:
• Name of project
• Name, address, email, and phone number of individual(s) to contact for referral
• Brief description of service provided
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 6 | Page
• Project manager and key personnel on the project who will also work on this project
• Start/Finish (months and years)
3. Understanding of and Proposed Approach to the RFQ Scope of Work a. Based on the Project / Scope of Work Overview provided, this section must describe your understanding of the City and the objectives to be accomplished, innovative approaches and solutions to similar projects, and detailed descriptions of efforts your company will undertake to achieve client satisfaction. b. Identify objectives/tasks that your company considers key to the success of the project. This may include items not already identified in this RFQ. References for protocols and methods are encouraged.
c. List the steps your company plans to follow to perform routine preventative maintenance services for the City’s wells and pumps, as well as water well rehabilitation.
d. Describe the standards and methods used by the company to assure quality work.
4. Cost / Fee Schedule
a. In an effort to save time, interested contractors shall concurrently submit a detailed hourly rate schedule, which is to be uploaded under Cost File in PlanetBids. The fee schedule submitted shall remain in effect for at least the first twelve (12) months of the contract.
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 7 | Page
SUBMITTAL GUIDELINES
Tuesday, March 8, 2022 Complete written responses must be submitted electronically in PDF file format via the www.PlanetBids.com website no later than 4:00 p.m. (PST) on Tuesday, March 8, 2022. Responses will not be accepted after the deadline. Faxed or emailed responses will not be accepted.
Please review the upload instructions provided on the website prior to the due date. This will ensure proper and timely electronic submittal of response.
Responses shall be prepared with sufficient details to allow for thorough evaluation and comparative analysis.
The response shall not exceed twenty (20) single-sided, standard size (8.5” X 11”) pages (not including cover, table of contents and any forms/documents specifically added in PlanetBids as a separate upload).
Questions & Addenda
Questions about this RFQ must be directed in writing through the PlanetBids Q&A tab no later than 4:00 p.m. (PST) on February 23, 2022 for response.
All questions regarding this RFQ shall be submitted electronically in PlanetBids up to the Questions deadline. All project correspondence will be posted in PlanetBids. It is the responsibility of the contractors to check the website regularly for information updates, clarifications, and addenda. At the City’s discretion, contractors’ requests for clarifications may or may not be responded to.
It is important to note that the City reserves the right to reject any and all responses. The City will not be liable for, nor pay for any costs incurred by responding contractors relating to the preparation of the response. An explicit provision of this RFQ is that any oral communication is not binding on the City’s RFQ response process or selection criteria.
All revisions of the RFQ by the City will be made in writing and will be posted on PlanetBids.
Contractors shall electronically acknowledge receipt of all addenda at time of submittal and all addenda so issued shall become part of the RFQ and the effects of all addenda shall be considered in the contractor’s response.
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 8 | Page
SELECTION OF FIRM
RFQ Assessment Process
The City will coordinate a review and evaluation of all responses received by the City in response to this RFQ. As part of the assessment process, the City will place particular emphasis on the qualifications / experience of the individuals assigned to the project; directly relevant qualifications / experience of the contractor; the overall ability of the contractor to provide the services; and the contractor’s understanding and proposed approach to the project. The following specific criteria will be used in the evaluation process:
1. Qualifications and experience of the individuals assigned to the contract
2. Qualifications and experience of the responding contractor
3. Overall ability to provide as-needed maintenance, repair and rehabilitation services for the City’s water wells, pumps and motors
4. Understanding and proposed approach to the project
After assessing the responses received, the City plans to enter into an initial 3-year agreement with the selected contractor(s). The City may enter into agreements with several service providers, based on City needs and the qualifications of the responding contractors. Additional contract details will be developed with the identified contractor(s), based on the provisions of the response submitted by each responding contractor.
Overall Assessment / Selection Process
After assessing all of the responses received, the most qualified respondents will be invited to participate in an interview with City staff. Following that interview process, the City will identify the selected contractor(s) to partner with on this project. The selected contractor(s) will be asked to enter into a Contractor Services Agreement with the City. The selected contractor(s) will be required to purchase a City Business License annually during the duration of the Contract.
The anticipated timeline for these steps is as follows:
Event Tentative Date
Issuance of RFQ Friday, February 4, 2022
Questions Deadline Wednesday, February 23, 2022
Qualifications Due Date Tuesday, March 8, 2022
Interviews of Finalists, if applicable Week of March 21, 2022 Tentative Selection and City Council Award April 2022
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 9 | Page
The City makes no guarantee to the amount of work that will be made available. Only recently, has the current “as-needed” list been needed to augment City Staff and to provide services.
Compensation for contractor services shall be based on hourly rates, and is typically a “not to exceed” amount negotiated by the Contractor and City prior to the execution of the “As-needed” Contractor Services Agreement (and the overall Contractor Services Process as described on page 11). The Contractor Services Process generally entails agreeing on the staff assigned, work plan, estimated cost, and materials costs. Payment will not be made until work product is delivered and deemed acceptable by the City.
Disclaimer
This RFQ does not commit the City either to issue a Request for Proposal (RFP), award a contract, or to pay any costs incurred in the preparation of the RFQ response. The City reserves the right to extend the due date for the RFQ, accept or reject any or all qualifications submittals received as a result of this request, negotiate with any qualified contractor or cancel this RFQ in part or in its entirety without penalty.
Assigned Representatives
The City will assign a responsible representative to administer the contract and to assist the Contractor in obtaining information. The Contractor shall also assign a responsible representative (project manager) and an alternate, who shall be identified in the RFQ response. The Contractor’s representative will remain in responsible charge of the Contractor’s duties from the notice-to proceed through project completion. If the Contractor’s primary representative should be unable to continue with the project, then the alternate representative identified in the RFQ response shall become the project manager. Any substitution of representatives or subcontractors identified in the RFQ response shall first be approved in writing by the City’s representative. The City reserves the right to review and approve/disapprove all key staff and subcontractor substitutions or removals, and may consider such changes not approved to be a breach of contract.
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 10 | Page
CONTRACTOR SERVICES PROCESS
Following the execution of an “As-need” Contractor Services Agreement, projects may be assigned on a qualification-based selection process. The City will issue projects one of two ways depending on 1) specialized work and/or 2) qualified staff availability. 1) Specialized Work – The City will provide all Contractors with a scope of work and desired schedule, and the Contractors will be invited to submit work plans, proposed staff, hours and schedule. The City construction manager will review the work plans with the City Project Manager and issue an addendum to the highest quality and qualified contractor response based on the qualifications of staff, schedule, and work plan (ranked by equally weighting the above criteria).
2) Standard Public Works Improvements – City will review the amounts of past task orders and assign task orders to provide work fairly to the Contractors on the as-needed agreements; or on a rotational basis keeping fairness in mind as the top-ranked firms are presumed or expected to be highly qualified.
The City will contact the assigned Contractor to agree on final scope, schedule, work plan, not to exceed amount, and deliverables. Upon agreement, the City will issue a Purchase Order which shall be considered as the “Notice to Proceed” and authorizes work. If agreement cannot be reached or a Contractor is not available, the City will approach the next highest ranked response or next Contractor deserving a task order.
ATTACHMENTS
1. Water Facility Location Map
2. Well Information
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 11 | Page
Attachment #1:
WATER FACILITY LOCATION MAP
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 12 | Page
WATER FACILITY LOCATION MAP
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 13 | Page
Attachment #2:
WELL INFORMATION
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 14 | Page
WELL INFORMATION
General Notes
• Well 6 access to the motor and pump is through the roof which has a concrete slab that has to be lifted by crane and then replaced and resealed when work is complete. All other locations are easily accessible through roof hatches.
• Anticipated work for years one and two will be the rehabilitation and repair of Wells 10, 11, 6, and 8, in that order. Wells 10 and 11 can be worked on simultaneously since both wells are currently out of operation. Work on subsequent wells will be one at a time.
Anticipated work for year three and beyond will include the rehabilitation and repair of Wells 9 and 12, and any other necessary work as required. A scope of work and specifications will be developed for each of the well rehabilitation projects prior to starting any work.
Well 6
• Well drilled in 1974 to a depth of 1,150 feet.
• Current pump bowl depth of 272 feet.
• Well is currently operational and reliable production is approximately 4,000 GPM. • November 2017 - Motor serviced/rebuilt but the pump was not pulled. • 2008 - Last time the pump was pulled for rehabilitation. • 2018 - Tried to pull the pump for well inspection/video. The operation was unsuccessful with the pump getting stuck and would only raise 3 feet with a 40-ton crane. The pump is unable to be freed and removed. The pump is still currently stuck, but the well is still operable and in use.
• Need recommendations to pull the stuck pump.
• If pulling the pump is successful, perform a well video inspection and condition assessment to make a recommendation for the next steps.
Well 8
• Well was drilled in 1977 to a depth of 920 feet.
• Current pump bowl depth of 220 feet.
• Well is currently operational and reliable. Production is approximately 2,000 GPM. • March 2018 - Motor was pulled and rebuilt to inversion duty. • The drive needs to be upgraded to a Variable Frequency Drive (VFD). • The last rehabilitation and pump replacement were done in January of 2007 • Well has had historical water quality issues related to iron bacteria.
Well 9
• Well was drilled in 2009 to a depth of 1,114 feet.
• Current pump bowl depth of 261 feet.
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 15 | Page
• Well is currently operational and reliable. Production is approximately 4,000 GPM. • Well was last rehabilitated in September 2017.
• Well has a history of pumping sand. In November of 2018, the desander developed a hole causing leakage. The desander was modified but will need to be considered for replacement.
• The head shaft was replaced in April of 2019 due to hour glassing attributed to sand collecting in the packing gland.
• Perform well condition assessment and rehabilitation recommendations. Assess the condition of the desander and possible replacement.
• Make operational recommendations to minimize sand production.
Well 10
• Well was drilled in 1987 to a depth of 1,100 feet.
• Current pump bowl depth of 263 feet.
• Well is currently out of service, production was 2,200 GPM. • Well 10 was rehabilitated and a liner with a glass bead filter pack was installed in 2018.
Shortly afterward, the beads began entering the effluent stream and the well has been out of service since July 2020. The beads have adversely affected the city’s distribution system.
• In September of 2020, a downhole video inspection was performed but showed no visible defect of the liner that would allow the beads to enter the City’s system. • We also found a minimal amount of beads in the sand separator on site. The well is designed to operate and divert the effluent to a sand separator at start-up to flush debris from the pump column. In theory, the separator should have captured the beads along with any stirred packing material/sediment or sand. The effectiveness of the desander is in question and an evaluation is needed.
• In 2021, a dynamic pump test and video were conducted and did not find any deficiencies with the casing. The beads in the effluent may have been excess from the initial installation.
• Need to perform well condition assessment and rehabilitation recommendations along with a plan to resolve the bead issue by potentially installing a filter if it continues to occur.
Well 11
• Well was drilled in 1987 to a depth of 1,027 feet.
• Current pump bowl depth of 254 feet.
• Well is currently out of service, production was 3,400 GPM. • Well was last rehabilitated in May 1994.
• In August 2019, the pump and motor were pulled. The pump was very difficult to remove because it was sticking and dragging on the way out. The crane operator increased the mechanical advantage on his rigging and increased his pull to 46,000 pounds in order to
CITY OF FOUNTAIN VALLEY
As-needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ As-Needed Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services RFQ 21-023 Submittal Deadline Tuesday, March 8, 2022 @ 4:00 p.m., PST 16 | Page
remove it. The pump strainer was not intact and sections were missing. The well was sounded and an obstruction was hit at 280 feet BGS. The reported depth of the well is 960 feet.
• August 5, 2019 - The City had a well casing video performed and a section of the pump strainer along with several well transducer leads were found at 280 feet BGS. • August 9, 2019 - The City had a contractor attempt to remove the obstruction utilizing specialized tools. We were able to remove several transducer leads and pieces of the strainer. The well was again sounded and an obstruction was found at 669 feet BGS. A 4- inch by 10-foot section of drilling pipe filled with concrete with an approximate weight of 600 pounds was lowered into the well to attempt to dislodge the obstruction. The lifting cable went slack at 669 feet, but the object did not move. The piece of drilling pipe was raised approximately 6 feet to 662 feet and allowed to free-fall onto the obstruction and still was not able to move the obstruction.
• August 20, 2019 - The City had a second well casing video performed and discovered what looks to be more pieces of the strainer and other well debris obstructing the well. If what is seen is debris all the way down to the bottom of the well it will be about 400 cubic feet of material to be removed.
• Subsequently, two contractors tried to remove the obstruction without success. The motor had damage from water intrusion and has since been rebuilt. • Investigate the viability of well rehabilitation and resolve the obstruction issue.
Well 12
• Well was drilled in 1999 to a depth of 1,090 feet.
• Current pump bowl depth of 197 feet.
• Well is currently operational and reliable production is approximately 2,400 GPM. • Well was last rehabilitated in November 2017.
• Drive upgraded to a VFD in April 2018.
• Motor replaced in April 2019 with increased horsepower.
July 2021– City of Fountain Valley 1 | Page
Dear Contractor:
In entering into an agreement with the City of Fountain Valley, you must designate your form of business entity. There are three basic types of business entities. They are:
1. A Sole Proprietorship
(with or without a “dba”)
2. A Partnership
3. A Corporation
In entering into contracts with the City of Fountain Valley, please indicate the complete name of your business in one of the following acceptable formats:
1. John Smith, Sole Proprietor;
or
John Smith, Sole Proprietor,
doing business as “Acme Roofing”
2. Smith and Dokes, a California Partnership;
3. Smith Corporation, Inc.,
a California Corporation
In signing the agreement with the City of Fountain Valley, you or your agent must sign in one of the following manners so the capacity in which you or your agent is signing is clear:
1. ___________________________
John Smith, Sole Proprietor
2. Smith and Dokes
By: ______________________
John Smith, Partner
3. Smith Corporation, Inc.
By: ______________________
Vice President
Your Public Notary must indicate your capacity when acknowledging your signature.
July 2021– City of Fountain Valley 1 | Page
CONTRACT
CON-___-___
This AGREEMENT is made and entered into this 3rd day of May, 2022, by and between the CITY OF FOUNTAIN VALLEY, hereinafter referred to as “CITY,” and General Pump Company, hereinafter referred to as “CONTRACTOR.”
WITNESSETH
That for and in consideration of the promises and agreements hereinafter made and exchanged, CITY and CONTRACTOR mutually agree as follows:
SCOPE OF THE WORK AND CONTRACT SUM
1. Scope of the Work. CONTRACTOR shall perform all the work and shall provide and furnish all labor, materials, tools, expendable equipment, utility and transportation services required to construct RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services, (hereafter referred to as “PROJECT”).
2. Labor and Materials. All of said work to be performed and materials to be furnished shall be in strict accordance with the plans and specifications entitled Project No. RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services and CONTRACTOR agrees to do everything required by this AGREEMENT, the plans and specifications, and the CONTRACT DOCUMENTS.
All labor, materials, tools, equipment, and services shall be performed under the direction, administration, and subject to the approval of CITY or its authorized representatives.
3. Contract Sum. CITY agrees to pay, and CONTRACTOR agrees to accept in full payment for the work above agreed to be done an amount not to exceed two million dollars ($2,000,000.00).
NOTICE TO PROCEED AND TIMING
4. Notice to Proceed. No work, services, material, or equipment shall be performed or furnished under this AGREEMENT unless and until a “Notice to Proceed” has been given to CONTRACTOR by CITY and all bonds and certificates of insurance required pursuant hereto have been furnished to and approved by CITY.
5. Term. This AGREEMENT shall commence on the date of execution of this AGREEMENT, and expire on May 3, 2025, subject to earlier termination as provided for herein. This AGREEMENT may be extended by the CITY for one (1) additional two (2) year term at the discretion and approval of the CITY.
6. Time of the Essence. Time is of the essence of this AGREEMENT.
JOB PROGRESS AND COOPERATION
7. Job Progress. CONTRACTOR agrees to maintain a realistic critical path analysis throughout the project. CONTRACTOR agrees to meet with CITY’s PROJECT MANAGER or designee on a weekly or other periodic basis, or as requested by CITY to review job progress. PROJECT MANAGER for purposes of this AGREEMENT shall be the Director of Public Works-City Engineer or such designee as has been given the authority for this project in a written designation. CONTRACTOR agrees to provide CITY with critical path analysis documentation whenever job progress is impacted so that the completion date may be affected or whenever delays or other impacts may give rise to CONTRACTOR’s claim for additional days or additional damages. Delay and other claims of damages based on CONTRACTOR’s planned early
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completion are prohibited.
8. Cooperation. CONTRACTOR agrees to cooperate with CITY’s PROJECT MANAGER or designee and to provide submittals and participate in meetings in a good faith effort to complete the project.
If disagreements arise, CONTRACTOR agrees to document the disagreement in accordance with these AGREEMENT provisions and provide CITY with early notice of the same for later resolution but shall continue to cooperate and prosecute the work to completion in a diligent manner. Nothing herein shall excuse CONTRACTOR’s strict compliance with Section 22 if additional time or money is sought.
9. CONTRACTOR’S Independent Investigation.
No plea of ignorance of conditions that exist or that may hereafter exist, or of conditions or difficulties that may be encountered in the execution of the work under this AGREEMENT, as a result of failure to make the necessary independent examinations and investigations, and no plea of reliance on initial investigations or reports prepared by CITY for purposes of letting this AGREEMENT out to bid, will be accepted as an excuse for any failure or omission on the part of the CONTRACTOR to fulfill in every detail all requirements of said AGREEMENT, specifications, and plans, nor will such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of time except as provided in Section 22 of this AGREEMENT.
Except as specifically provided in the CONTRACT DOCUMENTS, information provided for purposes of bidding do not represent “conditions indicated” as being in existence and are provided for the convenience of the parties in making their own investigation.
PREVAILING WAGES & LABOR, WAGE, AND HOURS LAWS
10. Compliance with the Davis-Bacon Act. This provision does not apply to this AGREEMENT.
11. Public Work/DIR Registration. Notice is provided pursuant to Labor Code Section 1781 that this is a “public work” as defined in Chapter 1, Part 7, Division 2 of the Labor Code, to which Section 1771 applies. CONTACTOR shall pay prevailing wages, unless exempt. All contractors and subcontractors working on this job shall be registered with the Department of Industrial Relations using online form 100.
12. Prevailing Wage Rates. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages can be found at http://www.dir.ca.gov/OPRL/PWD/index.htm and are on file at City Hall, which shall be made available to any interested party upon request. CONTACTOR shall post a copy of the determination of the director of the prevailing rate of per diem wages at each job site. Said per diem wages are deemed to include employer payments for health and welfare, pension, vacation and travel time, and subsistence pay, all in accordance with Section 1773.1 of the Labor Code.
13. Payroll Records. The provisions of Section 1776 of the Labor Code regarding the preparation, maintenance, and filing of payroll records are applicable to this AGREEMENT. Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Electronic certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or contain the same information. THE CONTRACTOR’S AND SUBCONTRACTOR’S PAYROLL RECORDS SHALL BE SUBMITTED TO CITY ON A WEEKLY BASIS.
THE CONTRACTOR SHALL BE RESPONSIBLE FOR SUBMITTAL OF SUB-CONTRACTOR’S PAYROLL RECORDS. Additionally, CONTRACTOR or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in Section 1776 subdivision (a) of the Labor Code. In the event that CONTRACTOR or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to CITY, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for
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each worker, until strict compliance is effectuated. CITY may deduct this penalty from any monies due or that may become due CONTRACTOR under this AGREEMENT.
14. Penalty. CONTRACTOR and any subcontractor under CONTRACTOR shall pay, as a penalty to CITY, as specified in section 1 of General Provision and CITY may deduct the penalty from any monies due or that may become due CONTRACTOR under this AGREEMENT. The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall also be paid to each worker by CONTRACTOR or subcontractor, in accordance with Section 1775 of the Labor Code of the State of California.
15. Apprentices. If applicable, the provisions of Labor Code Section 1777.5 requiring the use of apprentices in certain ratios to journeymen on the project are hereby imposed upon CONTRACTOR.
16. Legal Day’s Work. In the performance of this AGREEMENT, not more than eight (8) hours shall constitute a day’s work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in Labor Code Section 1815.
CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code of the State of California, and it is agreed that the CONTRACTOR shall forfeit to the CITY as a penalty the sum of Twenty-Five Dollars ($25.00) for each worker employed in the execution of this AGREEMENT by the CONTRACTOR or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said article. CITY may deduct this penalty from any sums owed pursuant to this AGREEMENT.
PROGRESS PAYMENTS AND RETENTION
17. Progress Payments. Pursuant to Public Contract Code Section 7201, prior to the fifteenth (15th) day of the month next following the commencement of the work, there shall be paid to CONTRACTOR a sum equal to ninety-five percent (95%) of the value of the work completed since the commencement of the work as determined by CITY and thereafter prior to the fifteenth (15th) day of each successive month as the work progresses. CONTRACTOR shall be paid such sum as will bring the payments up each month to ninety-five percent (95%) of the value of the work completed since the commencement of the work as determined by CITY, less all previous payments and authorized deductions, provided that CONTRACTOR submits his request for payment prior to the last Wednesday of each preceding month. Pursuant to Public Contract Code 7107, CITY shall make the final payment, if unencumbered, or any part thereof unencumbered, within sixty (60) days after the date of completion. Notwithstanding the foregoing, CONTRACTOR shall provide CITY with all documentation required by this AGREEMENT, including the Final Closeout Agreement and Release of All Claims, as well as any other documents required by the CONTRACT DOCUMENTS, such as as-builts, red-line plans, manufacturers and specific guarantees, and owner’s manuals prior to receiving final payment. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the City Engineer, stating that the work for which payment is demanded has been performed in accordance with the terms of the AGREEMENT, and that the amount stated in the certificate is due under the terms of the AGREEMENT. Partial payments on the AGREEMENT price shall not be considered as an acceptance of any part of the work. Nothing herein shall limit CITY’s right to withhold one hundred fifty percent (150%) of disputed amounts in the event of a good faith dispute.
18. Prompt Payments. CITY agrees to promptly make progress payments on undisputed and properly submitted payment requests within thirty (30) days and to comply with the provisions of Public Contract Code Section 20104.50.
19. Retention Securities. Pursuant to California Public Contract Code Section 22300, CONTRACTOR will be entitled to post approved securities with the CITY or an approved financial institution in order to have the CITY release funds retained by the CITY to insure performance of the AGREEMENT.
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20. Federal Participation. This provision does not apply to this AGREEMENT. If this project had involved federal funds, other provisions would be incorporated into this AGREEMENT. If those provisions had applied, the Davis-Bacon Act would govern the payment of prevailing wages.
CHANGE ORDERS / EXTRA TIME / EXTRA WORK
21. Request for Extra Time or Additional Compensation. The following provisions must be strictly complied with to obtain additional time to complete the job or to obtain additional compensation:
(a) Request for Change Order – Additional Time. The CONTRACTOR shall promptly notify the CITY of any delay and shall within ten (10) days from the beginning of any such delay notify the CITY in writing of the cause of the delay, and the CITY shall extend the time for completing the work if in its judgment the cause so merits. The CITY’s determination on this matter shall be final and conclusive on the parties hereto. CONTRACTOR shall be required to submit a Request for Change Order, as set forth in this AGREEMENT, to the CITY’s PROJECT MANAGER within ten (10) days of the beginning of such delay. No adjustment shall be allowed for such delay unless there is strict compliance with this contractual provision.
CONTRACTOR’s remedy shall be limited to the extra days granted and to any damages that it may be entitled to using the formula agreed to by the parties for all damages as provided in Section 22. (b) Request for Change Order – Additional Compensation Sought. (i) Should CONTRACTOR claim that the CITY is demanding extra work from it or consider any work demanded of it to be outside the requirements of this AGREEMENT or if it considers any instruction, ruling, or decision of the PROJECT MANAGER to be unfair, he shall within ten (10) days after any such demand is made, or instruction, ruling, or decision is given, file a written protest with the PROJECT MANAGER, stating clearly and in detail his objections and the reasons therefor.
Except for such protests and objections as are made of record, in the manner and within the time above stated, the CONTRACTOR shall be deemed to have waived and does hereby waive all claims for extra work, damages, and extensions of time on account of demands, instructions, rulings, and decision of the PROJECT MANAGER.
(ii) Should CONTRACTOR claim that additional compensation is due it because of an unforeseen condition, CONTRACTOR shall bring that to CITY’s attention promptly and, within ten (10) days, shall submit a written request for change order to CITY. (c) Request for Change Order – City Form to Be Used. CITY’s Request for Change Order form, which is attached hereto as part of this AGREEMENT, shall be the form that must be submitted in a timely fashion for a request for either additional time or additional compensation. By initialing, the CONTRACTOR specifically agrees to use said form for those purposes and understands that, if he does not submit that form in a timely manner, he waives the right to request additional time or compensation. No oral modifications or other forms of communication shall be accepted as compliance with this provision.
Contractor’s Initials ________
(d) Change Order. Should CITY agree that a change order is warranted for either additional time or compensation, a written change order shall be executed. If CITY does not agree to the change order, and CONTRACTOR has provided timely notices and submitted its written request for change order in a timely manner, CONTRACTOR will have preserved the issue for later resolution in compliance with other procedures set forth in this AGREEMENT or as the law may otherwise allow. (e) Change Order Authority. The following authority is hereby given to make change orders:
(i) Change Orders for Extra Time. The City Manager, Director of Public Works, or
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PROJECT MANAGER shall have the authority to grant extra days without limit. (ii) Change Orders for Extra Compensation. The Director of Public Works shall have the authority to make change orders up to an aggregate amount of Ten Percent (10%) of the original contract amount.
22. Damages / Extra Work Compensation. The parties have agreed to modify the formula for damages set forth in the Standard Specifications for Public Works Construction. The parties agree that the following damage formula shall be used to measure all of CONTRACTOR’s damages or extra work required by this job. CONTRACTOR shall be limited to the following:
Direct costs Mark-up
Labor 20%
Materials 15%
Equipment Rental 15%
Subcontracted work 10% (first $5,000)
Subcontracted work 5% (work in excess of first $5,000)
Specialty Subcontracting
(required by extra work) 5% (Provided at least three (3) competitive bids are obtained and CONTRACTOR selected the
lowest bidder)
Excluded from recovery shall be so-called “Eichleay damages,” including, but not limited to, home office overhead, insurance and bonding costs, lost bonding capacity, lost profits, and lost interest.
CONTRACTOR acknowledges that his recovery for damages or extra work is limited as provided in this Section.
Contractor’s Initials ________
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SUBCONTRACTING
23. Subcontracting. CONTRACTOR acknowledges that he or she is aware of the provisions of the “Subletting and Subcontracting Fair Practices Act” (Public Contract Code Sections 4100 et seq.) and agrees to comply with all applicable provisions thereof. If any part of the work to be done under this AGREEMENT is subcontracted, the subcontract shall be in writing and shall provide that all work to be performed thereunder shall be performed in accordance with this AGREEMENT. Upon request, certified copies of any or all subcontracts shall be furnished to CITY. The subcontracting of any or all of the work to be done will in no way relieve CONTRACTOR of any part of his responsibility under the AGREEMENT.
Pursuant to Public Contract Code Section 4110, CONTRACTOR’s violation of any of the provisions of the Subletting and Subcontracting Fair Practices Act violates this AGREEMENT and CITY may cancel this AGREEMENT or assess CONTRACTOR a penalty of not more than 10 percent (10%) of the subcontract involved. CITY may deduct this penalty from any monies due or that may become due to CONTRACTOR for work performed under this AGREEMENT.
All persons engaged in the work, including subcontractors, will be considered as employees of CONTRACTOR. CONTRACTOR will be held responsible for their work. CITY will deal directly with and make all payments to CONTRACTOR.
STOP NOTICES
24. Additional Costs. Pursuant to Civil Code Section 9358, upon receipt of a stop notice, CITY shall withhold from payment to CONTRACTOR sufficient funds due or to become due to pay the claim stated in the stop notice and provide for reasonable costs of litigation. One hundred twenty five percent (125%) of the amount of the claim stated in the stop notice shall be a reasonable amount to withhold. In addition to the remedies authorized by law, CONTRACTOR shall reimburse CITY for administrative expenses incurred in processing Notices to Withhold, Stop Notices, or similar legal documents arising out of a failure of CONTRACTOR to pay for labor or materials. Said obligation shall be provided for in CONTRACTOR’s payment bond. CITY shall have the right to deduct any such expenses from amounts due or to become to CONTRACTOR under this AGREEMENT.
COMPLETION
25. CONTRACTOR’S Waiver. CONTRACTOR agrees to execute a Final Close Out Agreement and Release of All Claims on CITY’s form. The execution by CONTRACTOR of the Final Close Out Agreement and Release of All Claims shall constitute a waiver of all claims against CITY under or arising out of this AGREEMENT unless otherwise stated in said document.
26. Guarantees. CONTRACTOR shall and hereby does guarantee all work for a period of one (1) year after the date of acceptance of the work by the CITY and shall repair and replace any and all such work, together with any other work which may be displaced in so doing, that may prove defective in workmanship and/or materials within the one (1) year period from the date of acceptance, without expense whatsoever to the CITY, ordinary wear and tear and usual abuse or neglect excepted. In the event of failure to comply with the aforementioned conditions within five (5) days after being notified in writing, the CITY is hereby authorized to proceed to have the defects repaired and made good at the expense of the CONTRACTOR, who shall pay the cost and charges therefor immediately on demand. This guarantee shall be in addition to any manufacturer or specific guarantees that may be required. CONTRACTOR shall provide those manufacturer and specific guarantees before CONTRACTOR may claim entitlement to final payment.
INDEMNIFICATION
27. Indemnity. CONTRACTOR shall indemnify, defend with legal counsel approved by CITY,
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and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with CONTRACTOR's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the CITY. Should conflict of interest principles preclude a single legal counsel from representing both CITY and CONTRACTOR, or should CITY otherwise find CONTRACTOR’s legal counsel unacceptable, then CONTRACTOR shall reimburse the CITY its costs of defense, including without limitation reasonable legal counsels fees, expert fees and all other costs and fees of litigation. The CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the CONTRACTOR’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.
CONTRACTOR obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of CITY under any provision of this agreement, CONTRACTOR shall not be required to indemnify and hold harmless CITY for liability attributable to the active negligence of CITY, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where CITY is shown to have been actively negligent and where CITY active negligence accounts for only a percentage of the liability involved, the obligation of CONTRACTOR will be for that entire portion or percentage of liability not attributable to the active negligence of CITY.
Notwithstanding any limits provided for indemnification, CONTRACTOR’s duty to defend is broader.
CONTRACTOR agrees to provide CITY with a defense, with counsel reasonably acceptable to CITY, or pay CITY’s costs of defense, upon service of any complaint, petition, or other pleading that requires CITY to defend itself in any proceeding arising out of the work described in this AGREEMENT. Said obligation shall not extend to disputes between CONTRACTOR and CITY.
INSURANCE
28. Insurance. Without limiting CONTRACTOR’s indemnification of CITY, and prior to commencement of Work, CONTRACTOR shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to CITY.
29. General liability insurance. CONTRACTOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability, and a $2,000,000 completed operations aggregate.
Automobile liability insurance. CONTRACTOR shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Umbrella or excess liability insurance. CONTRACTOR shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than $4,000,000 that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above,
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including commercial general liability and employer’s liability Such policy or policies shall include the following terms and conditions:
A drop down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectable in whole or in part for any reason; Pay on behalf of wording as opposed to reimbursement;
Concurrency of effective dates with primary policies; and Policies shall “follow form” to the underlying primary policies.
Insureds under primary policies shall also be insureds under the umbrella or excess policies.
Workers’ compensation insurance. CONTRACTOR shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for CONTRACTOR ’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code In addition, CONTRACTOR shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.
CONTRACTOR shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.
Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to CITY providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.
Products/completed operations coverage shall extend a minimum of three years after project completion.
Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The CITY, its officials, officers, agents, and employees, shall be included as insureds under the policy.
Builder’s risk insurance. Upon commencement of construction and with approval of CITY, CONTRACTOR shall obtain and maintain builder’s risk insurance as specified below.
The named insureds shall be CONTRACTOR, all Subcontractors (excluding those solely responsible for design Work) of any tier, suppliers, and CITY and its officers, officials, employees, and agents.
CONTRACTOR shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to CITY.
Policy shall be provided for replacement value on an "all risk" basis. There shall be no coinsurance penalty provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, Nonconforming Work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) transit coverage, including ocean marine coverage (unless insured by the supplier), with sublimits sufficient to insure the full replacement value of any key equipment item; and (5) coverage with sublimits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site. Such insurance shall be on a form acceptable to CITY to ensure adequacy of terms and sublimit.
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Proof of insurance. CONTRACTOR shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsement must be approved by CITY’s risk manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. CONTRACTOR shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONTRACTOR, his agents, representatives, employees or subcontractors. CONTRACTOR must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. CITY and its officers, officials, employees, and agents shall continue as additional insureds under such policies.
CITY’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from CONTRACTOR payments.
In the alternative, CITY may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY’s risk manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONTRACTOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONTRACTOR hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its sub consultants.
Enforcement of contract provisions (non estoppel). CONTRACTOR acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONTRACTOR of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
Notice of cancellation. CONTRACTOR agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents shall be additional insureds under such policies. This provision shall also apply to any excess liability policies.
CITY’s right to revise requirements. The CITY reserves the right at any time during the term of the
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contract to change the amounts and types of insurance required by giving the CONTRACTOR a ninety (90)- day advance written notice of such change. If such change results in substantial additional cost to the CONTRACTOR, the CITY and CONTRACTOR may renegotiate CONTRACTOR’s compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY.
CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.
Timely notice of claims. CONTRACTOR shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONTRACTOR’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. CONTRACTOR shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.
30. Workers’ Compensation.
CONTRACTOR shall carry Workers’ Compensation Insurance and require all subcontractors to carry Workers’ Compensation Insurance as required by the Labor Code of the State of California. CONTRACTOR, by executing this AGREEMENT, hereby certifies:
“I am aware of the provisions of Section 3700 of the 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 I will comply with such provisions before commencing the performance of the work of this AGREEMENT.”
CONTRACTOR acknowledges that it is unlawful and a crime to intentionally make false statements about employees that misclassify their job duties to obtain lesser premium costs or for other improper purposes.
CONTRACTOR agrees that if it makes false statements about its employees for the purpose of obtaining lower workers’ compensation premiums or for other unlawful purposes, it shall be considered a material breach of this AGREEMENT.
31. Bonds. Within the time period set forth in the CONTRACT DOCUMENTS and prior to commencing the Work on the Project, the CONTRACTOR shall file with the CITY good and sufficient labor and material payment bond (Payment Bond) and performance bond (Performance Bond) in the amount of one hundred percent (100%) of the Contract Sum covering performance of the Work other than the professional design services portion of the Work. The Performance Bond and Payment Bond shall be in the form required by the CONTRACT DOCUMENTS. The amounts of the Payment Bond and Performance Bond shall be increased as, when and in the amount of any Change Orders that are executed increasing the Contract Sum, the CONTRACTOR shall, upon request by the CITY, provide evidence of such increases.
Should the Payment Bond or Performance Bond or any Surety on such bond become or be determined by the CITY to be insufficient, it shall be replaced within ten days by a bond that fully complies with the requirements of this Section. No further payments to the AGREEMENT for the Work performed shall be made or due until the CONTRACTOR has fully complied with the requirements of this Section.
Duration. The Payment Bond shall remain in effect until acceptance of the Work and payment of all stop notices and claims by the CONTRACTOR or the Subcontractors, of any Tier, have been satisfied. The Performance Bond shall remain in effect and assure faithful performance of all the CONTRACTOR’s obligations under the CONTRACT DOCUMENTS, including, without limitation, all obligations that survive final completion or termination, such as, but not limited to, CONTRACTOR’s warranty, commissioning and indemnity obligations.
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Surety. At the time the Contract is signed and at all times thereafter until Final Payment has been made by the CITY, the Surety on the Payment Bond shall be an Admitted Surety and the Surety on the Performance Bond shall be a licensed Surety in good standing with the California Department of Insurance, and having an A.M. Best's Insurance Rating of not less than A-: VI.
Premiums. The premiums for all bonds are included in the Contract Sum and shall be paid by the CONTRACTOR.
Obligee. The Payment Bond and Performance Bond shall each name the CITY as obligee. All bonds purchased by the Subcontractors shall name the CONTRACTOR and the CITY as dual obligees.
No exoneration. Changes, Change Orders, Unilateral Change Orders, Field Orders, Modifications and adjustments to the Contract Sum or Contract Time shall in no way release or exonerate the CONTRACTOR or its Surety from their obligations, and notice thereof shall be waived by the Surety. The foregoing provision shall be included in the terms of the Payment Bond, Performance Bond and any bonds obtained by the Subcontractors.
Communications. The CITY shall have the right to communicate with the CONTRACTOR’s sureties with respect to matters that are related to the CONTRACTOR’s performance of its obligations under the CONTRACT DOCUMENTS. Such communications shall not create, or be interpreted as creating, any contractual relationship between the CITY and the Surety.
No limitation. The requirements of this Section pertaining to the Performance Bond and the Payment Bond shall be without limitation to any other obligations the CONTRACTOR may have under Applicable Law to provide bonding for the benefit of and to assure payment to the Subcontractors or Subconsultants performing the Work for the Project.
TERMINATION
32. Termination.
A. If CONTRACTOR should fail to comply with any of the provisions hereof, or in the event CONTRACTOR should become the subject of a proceeding under state or federal law for relief of debtors, or if CONTRACTOR makes an assignment for the benefit of creditors, CITY shall have the right to hold CONTRACTOR in default and cancel this AGREEMENT in whole or in part.
B. Should CONTRACTOR, at any time during the progress of the work, refuse or neglect to supply sufficient material or labor, or fail in compliance with any provision of this AGREEMENT, CITY shall have the right, without prejudice to any other right or remedy it may have, to provide such materials and labor, or make good such deficiencies as CITY may deem expedient after three (3) days’ notice in writing, delivered or mailed to CONTRACTOR at his last address on file with CITY, and CONTRACTOR shall be liable for the cost and expense thereof which may be deducted by CITY from any money due or that may become due CONTRACTOR.
C. Without limiting any rights which CITY may have by reason of any default by CONTRACTOR hereunder, CITY reserves the right to terminate this AGREEMENT in whole or in part at its convenience. In such event CITY shall compensate CONTRACTOR, subject to deduction for previous payments and authorized deductions: (i) by reimbursing CONTRACTOR for reasonable and necessary expenditures and costs that are actually incurred in performing under this AGREEMENT, (ii) by reimbursing CONTRACTOR for reasonable and necessary expenditures made and costs actually incurred with CITY’s prior written approval in settling or discharging outstanding commitments entered into by CONTRACTOR in performing under this AGREEMENT, and (iii) by paying CONTRACTOR as a profit, insofar as a profit is realized
July 2021– City of Fountain Valley 12 | Page
hereunder, an amount equal to the profit on the entire AGREEMENT estimated at the time of termination, multiplied by the percentage of completion of the work. In no event, however, will the compensation to CONTRACTOR exceed the total AGREEMENT price less payments previously made and less the AGREEMENT price of work not terminated. Upon receipt of any notice of termination, CONTRACTOR shall, unless the notice otherwise directs, (i) immediately discontinue the work and the placing of all orders and subcontracts in connection with this AGREEMENT, (ii) immediately cancel all existing orders and subcontracts made hereunder, and (iii) immediately transfer to CITY all materials, supplies, work-in-process, appliances, facilities, equipment, machinery, and tools acquired by CONTRACTOR in connection with the performance of this AGREEMENT.
CLAIM RESOLUTION
33. Resolution of Claims. For all claims that are Three Hundred Seventy-Five Thousand Dollars ($375,000.00) or less, the provisions of Public Contract Code Section 20104 et seq. (Article 1.5 - Resolution of Construction Claims) shall be followed.
34. Notice to Contractor of Claims. CITY shall provide notice to CONTRACTOR upon receipt of any third-party claim related to the AGREEMENT.
CONTRACT DOCUMENTS AND INTERPRETATION
35. Other Documents Included. It is further agreed by the parties hereto that the following documents are incorporated herein by reference and are to be read and construed together as the full, complete, and integrated terms of this AGREEMENT and, collectively with this AGREEMENT, may be referred to as the CONTRACT DOCUMENTS:
Notice Inviting Bids
Instructions to Bidders
General Provisions (incorporating portions of the Caltrans Standard Specifications) Special Provisions (Construction Details)
Construction Provisions (Individual Bid Items)
Proposal
Construction Plans
City Public Works Standard Plans
City Request for Change Order/Change Order
Notice to Proceed
Labor and Materials Bond
Performance Bond
Final Closeout Agreement
36. Interpretation of Incorporated Documents. In the event of any conflict, inconsistency, or incongruity between the provisions of this AGREEMENT and the provisions of any document listed in Section 35 hereof, the provisions of this AGREEMENT shall prevail unless a contrary intent is shown. The parties acknowledge that the Caltrans Standard Specifications is a document that is prepared for use in state street projects and is to be used to supplement this AGREEMENT. As used in the those Standard Specifications, “Engineer” shall refer to CITY’s Director of Public Works-City Engineer, the Attorney General shall mean the Attorney for the City, and laws that pertain exclusively to state projects or contracts shall not apply but instead those provisions pertaining to CITY projects and CITY contracts shall be applied. To the extent the Standard Specifications provide for additional procedures that are not inconsistent with the provisions of this AGREEMENT, those additional procedures shall be interpreted to supplement this AGREEMENT.
This AGREEMENT shall be interpreted as though it had been drafted by the CITY and the CONTRACTOR equally. This AGREEMENT shall be interpreted according to the laws of the State of California.
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37. Integration/No Oral Modifications. This AGREEMENT integrates all understandings of the parties. Any amendment to this AGREEMENT must be made in writing and signed by the parties with legal authority to execute the same. CONTRACTOR is aware that CITY is a general law city and that, pursuant to Government Code Section 40602, contract amendments may only be entered into by compliance with those formalities. Notwithstanding the above, requests for additional time or compensation may be made by following the procedures and using the form incorporated into this AGREEMENT. The limits of authority to enter into such amendments (change orders) shall be those provided in Section 22 of this AGREEMENT.
38. Effect of Invalidity. The invalidity in whole or in part of any provision hereof shall not affect the validity of any other provision.
MISCELLANEOUS
39. Discrimination, Minorities, Aliens. The CONTRACTOR shall not discriminate nor allow its employees, agents, principals, or subcontractors to discriminate against any employee or applicant for employment on the basis of race, religious creed, national origin, or sex. CONTRACTOR shall take affirmative steps to hire qualified minority individuals when job opportunities occur and utilize local business firms when possible and when consistent with California Constitution Article 1, Section 31 (a) [Proposition 209].
40. Equal Employment Opportunity. CONTRACTOR shall comply with all provisions of Executive Order 11246, entitled “Equal Employment Opportunity” and amended by Executive Order 11375, and as supplemented in Department of Labor Regulations (41 CFR part 60).
41. Drug-Free Work. CONTRACTOR agrees to provide a drug-free workplace in accordance with 24 CFR part 24, sub-part F. Under 24 CFR part 24, sub-part F, the CONTRACTOR will provide certification in writing that it will provide a drug-free workplace by:
(a) Publicizing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying the action it will take against employees for violation of such prohibition; (b) Establishing an ongoing drug-free awareness program to inform employees about:
1. Degrees of drug abuse in the workplace;
2. The policy of maintaining a drug-free workplace;
3. Any available drug counseling, rehabilitation, and employee assistance programs; and
4. The penalties which may be imposed on employees for drug abuse violations occurring in the workplace.
(c) Making it a requirement that every employee to be engaged in the performance of the AGREEMENT be given a copy of the statement required by Subsection (a); (d) Notifying employees in the statement required by Subsection (a) that as a condition of employment under the AGREEMENT the employee will:
1. Abide by the term of the statement; and
2. Notify the employer in writing of any conviction for a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction. (e) Notifying CITY in writing within ten (10) calendar days after receiving notice under Subsection (d)(2) from an employee or otherwise receiving actual notice of such conviction. Employer of
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said convicted employee must provide notice, including conviction title, to the CITY; (f) Taking one of the following actions, within thirty (30) calendar days of receiving notice under Subsection (d)(2), with respect to any employee who is so convicted:
1. Taking appropriate action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or
2. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency.
(g) Making a good faith effort to continue to maintain a drug-free workplace through implementation of Sections (a), (b), (c), (d), (e), and (f).
42. Permits. The CONTRACTOR shall obtain from the CITY, County, State, or other responsible public agencies all licenses and permits, and pay all fees related thereto, necessary to complete the job.
43. Assignment. No assignment by the CONTRACTOR of this AGREEMENT or any part hereof, or of funds to be received hereunder, will be recognized by the CITY unless such assignment has had prior written approval and consent of the CITY and the Surety.
44. Safety and Site Condition. CONTRACTOR shall perform all operations with due regard for safety and in strict compliance with all applicable laws relating thereto. It shall be CONTRACTOR’s responsibility to keep the site in a clean, neat, and orderly condition. It shall also be CONTRACTOR’s duty to dust-palliate all working areas and access routes, if applicable. All operations shall be conducted by CONTRACTOR so that no fire hazards are created.
45. Utility Location. CITY acknowledges its responsibilities with respect to locating facilities pursuant to California Government Code Section 4215.
46. Trenching. If this AGREEMENT involves digging trenches or other excavations that extend deeper than four feet (4’) below the surface, CONTRACTOR shall promptly, and before the following conditions are disturbed, notify the CITY in writing, of any:
(a) Material that the CONTRACTOR believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law. (b) Subsurface or latent physical conditions at the site differing from those indicated. (c) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the AGREEMENT.
The CITY shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in the CONTRACTOR’s cost of, or the time required for, performance of any part of the work shall issue a change order in accordance with the procedures described in this AGREEMENT.
In the event that a dispute arises between the CITY and the CONTRACTOR whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the CONTRACTOR’s cost of, or time required for, performance of any part of the work, the CONTRACTOR shall not be excused from any scheduled completion date provided for by the AGREEMENT but shall proceed with all work to be
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performed under the AGREEMENT. The CONTRACTOR shall retain any and all rights provided either by this AGREEMENT or by law which pertain to the resolution of disputes and protests between the contracting parties provided that CONTRACTOR complies with Section 22 when asserting such claim.
47. Notices. The parties hereto agree that all formal notices required by this AGREEMENT may be provided to the following persons at the following addresses by sending the same by certified or registered mail as follows:
CITY: City Clerk
Fountain Valley City Hall
10200 Slater Avenue
Fountain Valley, California 92708
General Pump Company
CONTRACTOR: 159 North Acacia Street
San Dimas, CA 91773
48. Gratuities. CONTRACTOR warrants that neither it nor any of its employees, agents, or representatives has offered or given any gratuities to CITY’s employees, agents, or representatives with a view toward securing this AGREEMENT or securing favorable treatment with respect thereto.
49. Conflict of Interest. CONTRACTOR warrants that he has no blood or marriage relationship with, and that he is not in any way associated with, any architect, engineer, or other preparer of the plans and specifications for this project.
50. Copeland "Anti-Kickback" Act. If applicable to this AGREEMENT, CONTRACTOR and its subcontractors shall comply with the provisions of the Copeland “Anti-Kickback” Act (18 U.S.C. Section 874), as supplemented in Department of Labor regulations, which Act provides that each contractor shall be prohibited from including, by any means, any person employed in the construction, completion, or repair of any public work, to give up any part of the compensation to which he is otherwise entitled.
51. Attorney’s Fees. In any action or proceeding brought by either party against the other party arising out of or in any way connected to this AGREEMENT, or where any provision hereof is validly asserted as a defense, the parties shall bear their own attorney’s fees, costs, and expenses. Nothing in this provision shall excuse CONTRACTOR’s duty to provide CITY with a defense at CONTRACTOR’s cost when CITY receives a complaint, petition, or other pleading from a third party requiring CITY to defend itself.
52. Assignment of Rights. Pursuant to Section 7103.5 of the Public Contract Code, in entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, the contractor or subcontractor offers and agrees to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C.
Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the awarding body tenders final payment to the contractor, without further acknowledgment by the parties.
53. SCAQMD and CARB Compliance. CONTRACTOR agrees to comply with all South Coast
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Air Quality Management District (SCAQMD) and California Air Resources Board (CARB) requirements, including, but not limited to, compliance with CARB Regulations limiting idling of self-propelled diesel-fueled on-road and off-road vehicles and equipment (25 HP and up) to no more than five (5) consecutive minutes as specified in Title 13 of the California Code of Regulations, section 2449 (d)(3), Idling.
54. Mined Construction Materials. CONTRACTOR shall not purchase mined construction material except from a mining operation that is currently identified in the list published pursuant to subdivision (b) of Section 2717 of the Public Resources Code. Refer to the current 3098 list for qualified mining operations at www.consrv.ca.gov/OMR/ab_3098_list/current_list.
IN WITNESS WHEREOF, the parties hereto have entered into this AGREEMENT the date and year first above written.
ATTEST: CITY OF FOUNTAIN VALLEY
City Clerk Mayor
APPROVED AS TO FORM:
HARPER & BURNS LLP
CONTRACTOR
Name: General Pump Company
Attorneys for the City
Address: 159 North Acacia Street
San Dimas, CA 91773
APPROVED AS TO CONTENT:
By: Michael Garcia
______________________________
Director of Public Works
July 2021– City of Fountain Valley 17 | Page
State of California )
County of _____________________________ )
On__________________________ before me, __________________________________________, Date Here insert Name and Title of the Officer
Personally appeared _______________________________________________________________ Name(s) of Signer(s)
____________________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.
Signature____________________________________
Signature of Notary Public
A notary public or other officer completing this completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not truthfulness, accuracy, or validity of that document.
July 2021– City of Fountain Valley 18 | Page
PAYMENT BOND
PAGE 1
Bond No.
CITY OF FOUNTAIN VALLEY
PAYMENT BOND
(LABOR AND MATERIAL BOND)
KNOW ALL MEN BY THESE PRESENTS:
THAT, WHEREAS, CITY OF FOUNTAIN VALLEY, a municipal corporation, by minute order of the City Council, adopted on May 3, 2022, has awarded to
General Pump Company
159 North Acacia Street
San Dimas, CA 91773
hereinafter designated as the “PRINCIPAL,” an AGREEMENT for the work described as follows: RFQ 21- 023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services. Said AGREEMENT is fully incorporated herein by reference.
WHEREAS, said PRINCIPAL is required by the provisions of said AGREEMENT and of the Civil Code to furnish a bond in connection with said AGREEMENT, as hereinafter set forth.
NOW, THEREFORE, WE, the undersigned CONTRACTOR, as PRINCIPAL, and (Name and Address of Surety)
hereinafter designated as the “SURETY,” duly authorized to transact business under the laws of the State of California, as SURETY, are held and firmly bound unto the City of Fountain Valley, in the penal sum of:_____________________ ($__________), said sum being not less than one hundred percent (100%) of the estimated amount payable under the terms of the AGREEMENT for which payment well and truly be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that, if said PRINCIPAL or his subcontractors, or the heirs, executors, administrators, successors, or assigns thereof, shall fail to pay any of the persons named in Section 3181 of the Civil Code of the State of California for any materials, provisions, provender ,or other supplies used in, upon, for, or about the performance of the work contracted to be done, or for any work or labor performed by any such claimant or any amounts require deducted, withheld, and paid over to the Franchise Tax Board from the wages of employees of the CONTRACTOR and his subcontractors pursuant to Section 18806 of the Revenue and Taxation Code, with respect to such work and labor, then said SURETY will pay for the same, in an amount not exceeding the sum set forth hereinabove, and in addition, in case suit is brought upon the bond, will pay a reasonable attorney’s fee to be fixed by the court.
This bond shall inure to the benefit of any and all persons named in the aforesaid Civil Code Section 3181 so as to give a right of action to them or their assigns in any suit brought upon the bond.
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PAYMENT BOND
PAGE 2
Bond No.
Further, the said SURETY, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the AGREEMENT documents or of the work to be performed thereunder shall in any way affect its obligation on this bond, and it hereby waives notice of any and all such changes, extensions of time, and alterations or modifications of the AGREEMENT documents and/or of the work to be performed thereunder.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this ________ day of ________ , 2022.
CONTRACTOR
General Pump Company
159 North Acacia Street
San Dimas, CA 91773
PRINCIPAL
By:
Company Representative
In accordance with the AGREEMENT for RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services, all bonds shall have been issued by an admitted surety insurer, and the CITY reserves the right to object to any such surety, in accordance with Code of Civil Procedure Section 995.660.
By signing below, SURETY certifies that the bonds are issued by admitted surety.
SURETY
By:
Company Representative
APPROVED AS TO FORM:
HARPER & BURNS LLP
Attorneys for the City
City of Fountain Valley
By /s/
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FAITHFUL PERFORMANCE BOND
PAGE 1
Bond No.
CITY OF FOUNTAIN VALLEY
FAITHFUL PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, WHEREAS, CITY OF FOUNTAIN VALLEY, a municipal corporation, by minute order of the City Council, adopted on May 3, 2022, has awarded to
General Pump Company
159 North Acacia Street
San Dimas, CA 91773
hereinafter designated as the “PRINCIPAL,” an AGREEMENT for the work described as follows: RFQ 21- 023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services. Said AGREEMENT is fully incorporated herein by reference.
WHEREAS, the said PRINCIPAL is required under the terms of said AGREEMENT to furnish a bond for the faithful performance of said AGREEMENT.
NOW, THEREFORE, WE, the undersigned CONTRACTOR, as PRINCIPAL, and (Name and Address of Surety)
hereinafter designated as the “SURETY,” duly authorized to transact business under the laws of the State of California, as SURETY, are held and firmly bound unto the City of Fountain Valley, in the penal sum of:
___________________ ($______________), said sum being not less than one hundred percent (100%) of the estimated amount payable under the terms of the AGREEMENT for which payment well and truly be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that, if the above burden PRINCIPAL, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform all the undertakings, terms, covenants, conditions, and agreements in the said AGREEMENT and any alteration thereof made as therein provided, on his or their part, to be kept and performed, at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of Fountain Valley, its officers, and its agents, as therein stipulated, then this obligation shall become null and void, otherwise it shall be and remain in full force and virtue
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FAITHFUL PERFORMANCE BOND
PAGE 2
Bond No.
In case suit is brought upon this bond, each party shall bear its own costs and attorney fees.
And the said SURETY, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the AGREEMENT or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the AGREEMENT or to the work or to the specifications.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _________ day of____________, 2022.
CONTRACTOR
General Pump Company
159 North Acacia Street
San Dimas, CA 91773
PRINCIPAL
By:
Company Representative
RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services, all bonds shall have been issued by an admitted surety insurer, and the CITY reserves the right to object to any such surety, in accordance with Code of Civil Procedure Section 995.660.
By signing below, SURETY certifies that the bonds are issued by admitted surety.
SURETY
By:
Company Representative
APPROVED AS TO FORM:
HARPER & BURNS LLP
Attorneys for the City
City of Fountain Valley
By /s/
July 2021– City of Fountain Valley 1 | Page
Dear Contractor:
In entering into an agreement with the City of Fountain Valley, you must designate your form of business entity. There are three basic types of business entities. They are:
1. A Sole Proprietorship
(with or without a “dba”)
2. A Partnership
3. A Corporation
In entering into contracts with the City of Fountain Valley, please indicate the complete name of your business in one of the following acceptable formats:
1. John Smith, Sole Proprietor;
or
John Smith, Sole Proprietor,
doing business as “Acme Roofing”
2. Smith and Dokes, a California Partnership;
3. Smith Corporation, Inc.,
a California Corporation
In signing the agreement with the City of Fountain Valley, you or your agent must sign in one of the following manners so the capacity in which you or your agent is signing is clear:
1. ___________________________
John Smith, Sole Proprietor
2. Smith and Dokes
By: ______________________
John Smith, Partner
3. Smith Corporation, Inc.
By: ______________________
Vice President
Your Public Notary must indicate your capacity when acknowledging your signature.
July 2021– City of Fountain Valley 1 | Page
CONTRACT
CON-___-___
This AGREEMENT is made and entered into this 3rd day of May, 2022, by and between the CITY OF FOUNTAIN VALLEY, hereinafter referred to as “CITY,” and Layne Christensen Company, hereinafter referred to as “CONTRACTOR.”
WITNESSETH
That for and in consideration of the promises and agreements hereinafter made and exchanged, CITY and CONTRACTOR mutually agree as follows:
SCOPE OF THE WORK AND CONTRACT SUM
1. Scope of the Work. CONTRACTOR shall perform all the work and shall provide and furnish all labor, materials, tools, expendable equipment, utility and transportation services required to construct RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services, (hereafter referred to as “PROJECT”).
2. Labor and Materials. All of said work to be performed and materials to be furnished shall be in strict accordance with the plans and specifications entitled Project No. RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services and CONTRACTOR agrees to do everything required by this AGREEMENT, the plans and specifications, and the CONTRACT DOCUMENTS.
All labor, materials, tools, equipment, and services shall be performed under the direction, administration, and subject to the approval of CITY or its authorized representatives.
3. Contract Sum. CITY agrees to pay, and CONTRACTOR agrees to accept in full payment for the work above agreed to be done an amount not to exceed two million dollars ($2,000,000.00).
NOTICE TO PROCEED AND TIMING
4. Notice to Proceed. No work, services, material, or equipment shall be performed or furnished under this AGREEMENT unless and until a “Notice to Proceed” has been given to CONTRACTOR by CITY and all bonds and certificates of insurance required pursuant hereto have been furnished to and approved by CITY.
5. Term. This AGREEMENT shall commence on the date of execution of this AGREEMENT, and expire on May 3, 2025, subject to earlier termination as provided for herein. This AGREEMENT may be extended by the CITY for one (1) additional two (2) year term at the discretion and approval of the CITY.
6. Time of the Essence. Time is of the essence of this AGREEMENT.
JOB PROGRESS AND COOPERATION
7. Job Progress. CONTRACTOR agrees to maintain a realistic critical path analysis throughout the project. CONTRACTOR agrees to meet with CITY’s PROJECT MANAGER or designee on a weekly or other periodic basis, or as requested by CITY to review job progress. PROJECT MANAGER for purposes of this AGREEMENT shall be the Director of Public Works-City Engineer or such designee as has been given the authority for this project in a written designation. CONTRACTOR agrees to provide CITY with critical path analysis documentation whenever job progress is impacted so that the completion date may be affected or whenever delays or other impacts may give rise to CONTRACTOR’s claim for additional days or additional damages. Delay and other claims of damages based on CONTRACTOR’s planned early
July 2021– City of Fountain Valley 2 | Page
completion are prohibited.
8. Cooperation. CONTRACTOR agrees to cooperate with CITY’s PROJECT MANAGER or designee and to provide submittals and participate in meetings in a good faith effort to complete the project.
If disagreements arise, CONTRACTOR agrees to document the disagreement in accordance with these AGREEMENT provisions and provide CITY with early notice of the same for later resolution but shall continue to cooperate and prosecute the work to completion in a diligent manner. Nothing herein shall excuse CONTRACTOR’s strict compliance with Section 22 if additional time or money is sought.
9. CONTRACTOR’S Independent Investigation.
No plea of ignorance of conditions that exist or that may hereafter exist, or of conditions or difficulties that may be encountered in the execution of the work under this AGREEMENT, as a result of failure to make the necessary independent examinations and investigations, and no plea of reliance on initial investigations or reports prepared by CITY for purposes of letting this AGREEMENT out to bid, will be accepted as an excuse for any failure or omission on the part of the CONTRACTOR to fulfill in every detail all requirements of said AGREEMENT, specifications, and plans, nor will such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of time except as provided in Section 22 of this AGREEMENT.
Except as specifically provided in the CONTRACT DOCUMENTS, information provided for purposes of bidding do not represent “conditions indicated” as being in existence and are provided for the convenience of the parties in making their own investigation.
PREVAILING WAGES & LABOR, WAGE, AND HOURS LAWS
10. Compliance with the Davis-Bacon Act. This provision does not apply to this AGREEMENT.
11. Public Work/DIR Registration. Notice is provided pursuant to Labor Code Section 1781 that this is a “public work” as defined in Chapter 1, Part 7, Division 2 of the Labor Code, to which Section 1771 applies. CONTACTOR shall pay prevailing wages, unless exempt. All contractors and subcontractors working on this job shall be registered with the Department of Industrial Relations using online form 100.
12. Prevailing Wage Rates. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages can be found at http://www.dir.ca.gov/OPRL/PWD/index.htm and are on file at City Hall, which shall be made available to any interested party upon request. CONTACTOR shall post a copy of the determination of the director of the prevailing rate of per diem wages at each job site. Said per diem wages are deemed to include employer payments for health and welfare, pension, vacation and travel time, and subsistence pay, all in accordance with Section 1773.1 of the Labor Code.
13. Payroll Records. The provisions of Section 1776 of the Labor Code regarding the preparation, maintenance, and filing of payroll records are applicable to this AGREEMENT. Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Electronic certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or contain the same information. THE CONTRACTOR’S AND SUBCONTRACTOR’S PAYROLL RECORDS SHALL BE SUBMITTED TO CITY ON A WEEKLY BASIS.
THE CONTRACTOR SHALL BE RESPONSIBLE FOR SUBMITTAL OF SUB-CONTRACTOR’S PAYROLL RECORDS. Additionally, CONTRACTOR or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in Section 1776 subdivision (a) of the Labor Code. In the event that CONTRACTOR or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to CITY, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for
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each worker, until strict compliance is effectuated. CITY may deduct this penalty from any monies due or that may become due CONTRACTOR under this AGREEMENT.
14. Penalty. CONTRACTOR and any subcontractor under CONTRACTOR shall pay, as a penalty to CITY, as specified in section 1 of General Provision and CITY may deduct the penalty from any monies due or that may become due CONTRACTOR under this AGREEMENT. The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall also be paid to each worker by CONTRACTOR or subcontractor, in accordance with Section 1775 of the Labor Code of the State of California.
15. Apprentices. If applicable, the provisions of Labor Code Section 1777.5 requiring the use of apprentices in certain ratios to journeymen on the project are hereby imposed upon CONTRACTOR.
16. Legal Day’s Work. In the performance of this AGREEMENT, not more than eight (8) hours shall constitute a day’s work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in Labor Code Section 1815.
CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code of the State of California, and it is agreed that the CONTRACTOR shall forfeit to the CITY as a penalty the sum of Twenty-Five Dollars ($25.00) for each worker employed in the execution of this AGREEMENT by the CONTRACTOR or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said article. CITY may deduct this penalty from any sums owed pursuant to this AGREEMENT.
PROGRESS PAYMENTS AND RETENTION
17. Progress Payments. Pursuant to Public Contract Code Section 7201, prior to the fifteenth (15th) day of the month next following the commencement of the work, there shall be paid to CONTRACTOR a sum equal to ninety-five percent (95%) of the value of the work completed since the commencement of the work as determined by CITY and thereafter prior to the fifteenth (15th) day of each successive month as the work progresses. CONTRACTOR shall be paid such sum as will bring the payments up each month to ninety-five percent (95%) of the value of the work completed since the commencement of the work as determined by CITY, less all previous payments and authorized deductions, provided that CONTRACTOR submits his request for payment prior to the last Wednesday of each preceding month. Pursuant to Public Contract Code 7107, CITY shall make the final payment, if unencumbered, or any part thereof unencumbered, within sixty (60) days after the date of completion. Notwithstanding the foregoing, CONTRACTOR shall provide CITY with all documentation required by this AGREEMENT, including the Final Closeout Agreement and Release of All Claims, as well as any other documents required by the CONTRACT DOCUMENTS, such as as-builts, red-line plans, manufacturers and specific guarantees, and owner’s manuals prior to receiving final payment. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the City Engineer, stating that the work for which payment is demanded has been performed in accordance with the terms of the AGREEMENT, and that the amount stated in the certificate is due under the terms of the AGREEMENT. Partial payments on the AGREEMENT price shall not be considered as an acceptance of any part of the work. Nothing herein shall limit CITY’s right to withhold one hundred fifty percent (150%) of disputed amounts in the event of a good faith dispute.
18. Prompt Payments. CITY agrees to promptly make progress payments on undisputed and properly submitted payment requests within thirty (30) days and to comply with the provisions of Public Contract Code Section 20104.50.
19. Retention Securities. Pursuant to California Public Contract Code Section 22300, CONTRACTOR will be entitled to post approved securities with the CITY or an approved financial institution in order to have the CITY release funds retained by the CITY to insure performance of the AGREEMENT.
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20. Federal Participation. This provision does not apply to this AGREEMENT. If this project had involved federal funds, other provisions would be incorporated into this AGREEMENT. If those provisions had applied, the Davis-Bacon Act would govern the payment of prevailing wages.
CHANGE ORDERS / EXTRA TIME / EXTRA WORK
21. Request for Extra Time or Additional Compensation. The following provisions must be strictly complied with to obtain additional time to complete the job or to obtain additional compensation:
(a) Request for Change Order – Additional Time. The CONTRACTOR shall promptly notify the CITY of any delay and shall within ten (10) days from the beginning of any such delay notify the CITY in writing of the cause of the delay, and the CITY shall extend the time for completing the work if in its judgment the cause so merits. The CITY’s determination on this matter shall be final and conclusive on the parties hereto. CONTRACTOR shall be required to submit a Request for Change Order, as set forth in this AGREEMENT, to the CITY’s PROJECT MANAGER within ten (10) days of the beginning of such delay. No adjustment shall be allowed for such delay unless there is strict compliance with this contractual provision.
CONTRACTOR’s remedy shall be limited to the extra days granted and to any damages that it may be entitled to using the formula agreed to by the parties for all damages as provided in Section 22. (b) Request for Change Order – Additional Compensation Sought. (i) Should CONTRACTOR claim that the CITY is demanding extra work from it or consider any work demanded of it to be outside the requirements of this AGREEMENT or if it considers any instruction, ruling, or decision of the PROJECT MANAGER to be unfair, he shall within ten (10) days after any such demand is made, or instruction, ruling, or decision is given, file a written protest with the PROJECT MANAGER, stating clearly and in detail his objections and the reasons therefor.
Except for such protests and objections as are made of record, in the manner and within the time above stated, the CONTRACTOR shall be deemed to have waived and does hereby waive all claims for extra work, damages, and extensions of time on account of demands, instructions, rulings, and decision of the PROJECT MANAGER.
(ii) Should CONTRACTOR claim that additional compensation is due it because of an unforeseen condition, CONTRACTOR shall bring that to CITY’s attention promptly and, within ten (10) days, shall submit a written request for change order to CITY. (c) Request for Change Order – City Form to Be Used. CITY’s Request for Change Order form, which is attached hereto as part of this AGREEMENT, shall be the form that must be submitted in a timely fashion for a request for either additional time or additional compensation. By initialing, the CONTRACTOR specifically agrees to use said form for those purposes and understands that, if he does not submit that form in a timely manner, he waives the right to request additional time or compensation. No oral modifications or other forms of communication shall be accepted as compliance with this provision.
Contractor’s Initials ________
(d) Change Order. Should CITY agree that a change order is warranted for either additional time or compensation, a written change order shall be executed. If CITY does not agree to the change order, and CONTRACTOR has provided timely notices and submitted its written request for change order in a timely manner, CONTRACTOR will have preserved the issue for later resolution in compliance with other procedures set forth in this AGREEMENT or as the law may otherwise allow. (e) Change Order Authority. The following authority is hereby given to make change orders:
(i) Change Orders for Extra Time. The City Manager, Director of Public Works, or
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PROJECT MANAGER shall have the authority to grant extra days without limit. (ii) Change Orders for Extra Compensation. The Director of Public Works shall have the authority to make change orders up to an aggregate amount of Ten Percent (10%) of the original contract amount.
22. Damages / Extra Work Compensation. The parties have agreed to modify the formula for damages set forth in the Standard Specifications for Public Works Construction. The parties agree that the following damage formula shall be used to measure all of CONTRACTOR’s damages or extra work required by this job. CONTRACTOR shall be limited to the following:
Direct costs Mark-up
Labor 20%
Materials 15%
Equipment Rental 15%
Subcontracted work 10% (first $5,000)
Subcontracted work 5% (work in excess of first $5,000)
Specialty Subcontracting
(required by extra work) 5% (Provided at least three (3) competitive bids are obtained and CONTRACTOR selected the
lowest bidder)
Excluded from recovery shall be so-called “Eichleay damages,” including, but not limited to, home office overhead, insurance and bonding costs, lost bonding capacity, lost profits, and lost interest.
CONTRACTOR acknowledges that his recovery for damages or extra work is limited as provided in this Section.
Contractor’s Initials ________
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SUBCONTRACTING
23. Subcontracting. CONTRACTOR acknowledges that he or she is aware of the provisions of the “Subletting and Subcontracting Fair Practices Act” (Public Contract Code Sections 4100 et seq.) and agrees to comply with all applicable provisions thereof. If any part of the work to be done under this AGREEMENT is subcontracted, the subcontract shall be in writing and shall provide that all work to be performed thereunder shall be performed in accordance with this AGREEMENT. Upon request, certified copies of any or all subcontracts shall be furnished to CITY. The subcontracting of any or all of the work to be done will in no way relieve CONTRACTOR of any part of his responsibility under the AGREEMENT.
Pursuant to Public Contract Code Section 4110, CONTRACTOR’s violation of any of the provisions of the Subletting and Subcontracting Fair Practices Act violates this AGREEMENT and CITY may cancel this AGREEMENT or assess CONTRACTOR a penalty of not more than 10 percent (10%) of the subcontract involved. CITY may deduct this penalty from any monies due or that may become due to CONTRACTOR for work performed under this AGREEMENT.
All persons engaged in the work, including subcontractors, will be considered as employees of CONTRACTOR. CONTRACTOR will be held responsible for their work. CITY will deal directly with and make all payments to CONTRACTOR.
STOP NOTICES
24. Additional Costs. Pursuant to Civil Code Section 9358, upon receipt of a stop notice, CITY shall withhold from payment to CONTRACTOR sufficient funds due or to become due to pay the claim stated in the stop notice and provide for reasonable costs of litigation. One hundred twenty five percent (125%) of the amount of the claim stated in the stop notice shall be a reasonable amount to withhold. In addition to the remedies authorized by law, CONTRACTOR shall reimburse CITY for administrative expenses incurred in processing Notices to Withhold, Stop Notices, or similar legal documents arising out of a failure of CONTRACTOR to pay for labor or materials. Said obligation shall be provided for in CONTRACTOR’s payment bond. CITY shall have the right to deduct any such expenses from amounts due or to become to CONTRACTOR under this AGREEMENT.
COMPLETION
25. CONTRACTOR’S Waiver. CONTRACTOR agrees to execute a Final Close Out Agreement and Release of All Claims on CITY’s form. The execution by CONTRACTOR of the Final Close Out Agreement and Release of All Claims shall constitute a waiver of all claims against CITY under or arising out of this AGREEMENT unless otherwise stated in said document.
26. Guarantees. CONTRACTOR shall and hereby does guarantee all work for a period of one (1) year after the date of acceptance of the work by the CITY and shall repair and replace any and all such work, together with any other work which may be displaced in so doing, that may prove defective in workmanship and/or materials within the one (1) year period from the date of acceptance, without expense whatsoever to the CITY, ordinary wear and tear and usual abuse or neglect excepted. In the event of failure to comply with the aforementioned conditions within five (5) days after being notified in writing, the CITY is hereby authorized to proceed to have the defects repaired and made good at the expense of the CONTRACTOR, who shall pay the cost and charges therefor immediately on demand. This guarantee shall be in addition to any manufacturer or specific guarantees that may be required. CONTRACTOR shall provide those manufacturer and specific guarantees before CONTRACTOR may claim entitlement to final payment.
INDEMNIFICATION
27. Indemnity. CONTRACTOR shall indemnify, defend with legal counsel approved by CITY,
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and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with CONTRACTOR's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the CITY. Should conflict of interest principles preclude a single legal counsel from representing both CITY and CONTRACTOR, or should CITY otherwise find CONTRACTOR’s legal counsel unacceptable, then CONTRACTOR shall reimburse the CITY its costs of defense, including without limitation reasonable legal counsels fees, expert fees and all other costs and fees of litigation. The CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the CONTRACTOR’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.
CONTRACTOR obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of CITY under any provision of this agreement, CONTRACTOR shall not be required to indemnify and hold harmless CITY for liability attributable to the active negligence of CITY, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where CITY is shown to have been actively negligent and where CITY active negligence accounts for only a percentage of the liability involved, the obligation of CONTRACTOR will be for that entire portion or percentage of liability not attributable to the active negligence of CITY.
Notwithstanding any limits provided for indemnification, CONTRACTOR’s duty to defend is broader.
CONTRACTOR agrees to provide CITY with a defense, with counsel reasonably acceptable to CITY, or pay CITY’s costs of defense, upon service of any complaint, petition, or other pleading that requires CITY to defend itself in any proceeding arising out of the work described in this AGREEMENT. Said obligation shall not extend to disputes between CONTRACTOR and CITY.
INSURANCE
28. Insurance. Without limiting CONTRACTOR’s indemnification of CITY, and prior to commencement of Work, CONTRACTOR shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to CITY.
29. General liability insurance. CONTRACTOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability, and a $2,000,000 completed operations aggregate.
Automobile liability insurance. CONTRACTOR shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Umbrella or excess liability insurance. CONTRACTOR shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than $4,000,000 that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above,
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including commercial general liability and employer’s liability Such policy or policies shall include the following terms and conditions:
A drop down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectable in whole or in part for any reason; Pay on behalf of wording as opposed to reimbursement;
Concurrency of effective dates with primary policies; and Policies shall “follow form” to the underlying primary policies.
Insureds under primary policies shall also be insureds under the umbrella or excess policies.
Workers’ compensation insurance. CONTRACTOR shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for CONTRACTOR ’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code In addition, CONTRACTOR shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.
CONTRACTOR shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.
Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to CITY providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.
Products/completed operations coverage shall extend a minimum of three years after project completion.
Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The CITY, its officials, officers, agents, and employees, shall be included as insureds under the policy.
Builder’s risk insurance. Upon commencement of construction and with approval of CITY, CONTRACTOR shall obtain and maintain builder’s risk insurance as specified below.
The named insureds shall be CONTRACTOR, all Subcontractors (excluding those solely responsible for design Work) of any tier, suppliers, and CITY and its officers, officials, employees, and agents.
CONTRACTOR shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to CITY.
Policy shall be provided for replacement value on an "all risk" basis. There shall be no coinsurance penalty provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, Nonconforming Work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) transit coverage, including ocean marine coverage (unless insured by the supplier), with sublimits sufficient to insure the full replacement value of any key equipment item; and (5) coverage with sublimits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site. Such insurance shall be on a form acceptable to CITY to ensure adequacy of terms and sublimit.
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Proof of insurance. CONTRACTOR shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsement must be approved by CITY’s risk manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. CONTRACTOR shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONTRACTOR, his agents, representatives, employees or subcontractors. CONTRACTOR must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. CITY and its officers, officials, employees, and agents shall continue as additional insureds under such policies.
CITY’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from CONTRACTOR payments.
In the alternative, CITY may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY’s risk manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONTRACTOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONTRACTOR hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its sub consultants.
Enforcement of contract provisions (non estoppel). CONTRACTOR acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONTRACTOR of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
Notice of cancellation. CONTRACTOR agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents shall be additional insureds under such policies. This provision shall also apply to any excess liability policies.
CITY’s right to revise requirements. The CITY reserves the right at any time during the term of the
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contract to change the amounts and types of insurance required by giving the CONTRACTOR a ninety (90)- day advance written notice of such change. If such change results in substantial additional cost to the CONTRACTOR, the CITY and CONTRACTOR may renegotiate CONTRACTOR’s compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY.
CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.
Timely notice of claims. CONTRACTOR shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONTRACTOR’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. CONTRACTOR shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.
30. Workers’ Compensation.
CONTRACTOR shall carry Workers’ Compensation Insurance and require all subcontractors to carry Workers’ Compensation Insurance as required by the Labor Code of the State of California. CONTRACTOR, by executing this AGREEMENT, hereby certifies:
“I am aware of the provisions of Section 3700 of the 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 I will comply with such provisions before commencing the performance of the work of this AGREEMENT.”
CONTRACTOR acknowledges that it is unlawful and a crime to intentionally make false statements about employees that misclassify their job duties to obtain lesser premium costs or for other improper purposes.
CONTRACTOR agrees that if it makes false statements about its employees for the purpose of obtaining lower workers’ compensation premiums or for other unlawful purposes, it shall be considered a material breach of this AGREEMENT.
31. Bonds. Within the time period set forth in the CONTRACT DOCUMENTS and prior to commencing the Work on the Project, the CONTRACTOR shall file with the CITY good and sufficient labor and material payment bond (Payment Bond) and performance bond (Performance Bond) in the amount of one hundred percent (100%) of the Contract Sum covering performance of the Work other than the professional design services portion of the Work. The Performance Bond and Payment Bond shall be in the form required by the CONTRACT DOCUMENTS. The amounts of the Payment Bond and Performance Bond shall be increased as, when and in the amount of any Change Orders that are executed increasing the Contract Sum, the CONTRACTOR shall, upon request by the CITY, provide evidence of such increases.
Should the Payment Bond or Performance Bond or any Surety on such bond become or be determined by the CITY to be insufficient, it shall be replaced within ten days by a bond that fully complies with the requirements of this Section. No further payments to the AGREEMENT for the Work performed shall be made or due until the CONTRACTOR has fully complied with the requirements of this Section.
Duration. The Payment Bond shall remain in effect until acceptance of the Work and payment of all stop notices and claims by the CONTRACTOR or the Subcontractors, of any Tier, have been satisfied. The Performance Bond shall remain in effect and assure faithful performance of all the CONTRACTOR’s obligations under the CONTRACT DOCUMENTS, including, without limitation, all obligations that survive final completion or termination, such as, but not limited to, CONTRACTOR’s warranty, commissioning and indemnity obligations.
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Surety. At the time the Contract is signed and at all times thereafter until Final Payment has been made by the CITY, the Surety on the Payment Bond shall be an Admitted Surety and the Surety on the Performance Bond shall be a licensed Surety in good standing with the California Department of Insurance, and having an A.M. Best's Insurance Rating of not less than A-: VI.
Premiums. The premiums for all bonds are included in the Contract Sum and shall be paid by the CONTRACTOR.
Obligee. The Payment Bond and Performance Bond shall each name the CITY as obligee. All bonds purchased by the Subcontractors shall name the CONTRACTOR and the CITY as dual obligees.
No exoneration. Changes, Change Orders, Unilateral Change Orders, Field Orders, Modifications and adjustments to the Contract Sum or Contract Time shall in no way release or exonerate the CONTRACTOR or its Surety from their obligations, and notice thereof shall be waived by the Surety. The foregoing provision shall be included in the terms of the Payment Bond, Performance Bond and any bonds obtained by the Subcontractors.
Communications. The CITY shall have the right to communicate with the CONTRACTOR’s sureties with respect to matters that are related to the CONTRACTOR’s performance of its obligations under the CONTRACT DOCUMENTS. Such communications shall not create, or be interpreted as creating, any contractual relationship between the CITY and the Surety.
No limitation. The requirements of this Section pertaining to the Performance Bond and the Payment Bond shall be without limitation to any other obligations the CONTRACTOR may have under Applicable Law to provide bonding for the benefit of and to assure payment to the Subcontractors or Subconsultants performing the Work for the Project.
TERMINATION
32. Termination.
A. If CONTRACTOR should fail to comply with any of the provisions hereof, or in the event CONTRACTOR should become the subject of a proceeding under state or federal law for relief of debtors, or if CONTRACTOR makes an assignment for the benefit of creditors, CITY shall have the right to hold CONTRACTOR in default and cancel this AGREEMENT in whole or in part.
B. Should CONTRACTOR, at any time during the progress of the work, refuse or neglect to supply sufficient material or labor, or fail in compliance with any provision of this AGREEMENT, CITY shall have the right, without prejudice to any other right or remedy it may have, to provide such materials and labor, or make good such deficiencies as CITY may deem expedient after three (3) days’ notice in writing, delivered or mailed to CONTRACTOR at his last address on file with CITY, and CONTRACTOR shall be liable for the cost and expense thereof which may be deducted by CITY from any money due or that may become due CONTRACTOR.
C. Without limiting any rights which CITY may have by reason of any default by CONTRACTOR hereunder, CITY reserves the right to terminate this AGREEMENT in whole or in part at its convenience. In such event CITY shall compensate CONTRACTOR, subject to deduction for previous payments and authorized deductions: (i) by reimbursing CONTRACTOR for reasonable and necessary expenditures and costs that are actually incurred in performing under this AGREEMENT, (ii) by reimbursing CONTRACTOR for reasonable and necessary expenditures made and costs actually incurred with CITY’s prior written approval in settling or discharging outstanding commitments entered into by CONTRACTOR in performing under this AGREEMENT, and (iii) by paying CONTRACTOR as a profit, insofar as a profit is realized
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hereunder, an amount equal to the profit on the entire AGREEMENT estimated at the time of termination, multiplied by the percentage of completion of the work. In no event, however, will the compensation to CONTRACTOR exceed the total AGREEMENT price less payments previously made and less the AGREEMENT price of work not terminated. Upon receipt of any notice of termination, CONTRACTOR shall, unless the notice otherwise directs, (i) immediately discontinue the work and the placing of all orders and subcontracts in connection with this AGREEMENT, (ii) immediately cancel all existing orders and subcontracts made hereunder, and (iii) immediately transfer to CITY all materials, supplies, work-in-process, appliances, facilities, equipment, machinery, and tools acquired by CONTRACTOR in connection with the performance of this AGREEMENT.
CLAIM RESOLUTION
33. Resolution of Claims. For all claims that are Three Hundred Seventy-Five Thousand Dollars ($375,000.00) or less, the provisions of Public Contract Code Section 20104 et seq. (Article 1.5 - Resolution of Construction Claims) shall be followed.
34. Notice to Contractor of Claims. CITY shall provide notice to CONTRACTOR upon receipt of any third-party claim related to the AGREEMENT.
CONTRACT DOCUMENTS AND INTERPRETATION
35. Other Documents Included. It is further agreed by the parties hereto that the following documents are incorporated herein by reference and are to be read and construed together as the full, complete, and integrated terms of this AGREEMENT and, collectively with this AGREEMENT, may be referred to as the CONTRACT DOCUMENTS:
Notice Inviting Bids
Instructions to Bidders
General Provisions (incorporating portions of the Caltrans Standard Specifications) Special Provisions (Construction Details)
Construction Provisions (Individual Bid Items)
Proposal
Construction Plans
City Public Works Standard Plans
City Request for Change Order/Change Order
Notice to Proceed
Labor and Materials Bond
Performance Bond
Final Closeout Agreement
36. Interpretation of Incorporated Documents. In the event of any conflict, inconsistency, or incongruity between the provisions of this AGREEMENT and the provisions of any document listed in Section 35 hereof, the provisions of this AGREEMENT shall prevail unless a contrary intent is shown. The parties acknowledge that the Caltrans Standard Specifications is a document that is prepared for use in state street projects and is to be used to supplement this AGREEMENT. As used in the those Standard Specifications, “Engineer” shall refer to CITY’s Director of Public Works-City Engineer, the Attorney General shall mean the Attorney for the City, and laws that pertain exclusively to state projects or contracts shall not apply but instead those provisions pertaining to CITY projects and CITY contracts shall be applied. To the extent the Standard Specifications provide for additional procedures that are not inconsistent with the provisions of this AGREEMENT, those additional procedures shall be interpreted to supplement this AGREEMENT.
This AGREEMENT shall be interpreted as though it had been drafted by the CITY and the CONTRACTOR equally. This AGREEMENT shall be interpreted according to the laws of the State of California.
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37. Integration/No Oral Modifications. This AGREEMENT integrates all understandings of the parties. Any amendment to this AGREEMENT must be made in writing and signed by the parties with legal authority to execute the same. CONTRACTOR is aware that CITY is a general law city and that, pursuant to Government Code Section 40602, contract amendments may only be entered into by compliance with those formalities. Notwithstanding the above, requests for additional time or compensation may be made by following the procedures and using the form incorporated into this AGREEMENT. The limits of authority to enter into such amendments (change orders) shall be those provided in Section 22 of this AGREEMENT.
38. Effect of Invalidity. The invalidity in whole or in part of any provision hereof shall not affect the validity of any other provision.
MISCELLANEOUS
39. Discrimination, Minorities, Aliens. The CONTRACTOR shall not discriminate nor allow its employees, agents, principals, or subcontractors to discriminate against any employee or applicant for employment on the basis of race, religious creed, national origin, or sex. CONTRACTOR shall take affirmative steps to hire qualified minority individuals when job opportunities occur and utilize local business firms when possible and when consistent with California Constitution Article 1, Section 31 (a) [Proposition 209].
40. Equal Employment Opportunity. CONTRACTOR shall comply with all provisions of Executive Order 11246, entitled “Equal Employment Opportunity” and amended by Executive Order 11375, and as supplemented in Department of Labor Regulations (41 CFR part 60).
41. Drug-Free Work. CONTRACTOR agrees to provide a drug-free workplace in accordance with 24 CFR part 24, sub-part F. Under 24 CFR part 24, sub-part F, the CONTRACTOR will provide certification in writing that it will provide a drug-free workplace by:
(a) Publicizing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying the action it will take against employees for violation of such prohibition; (b) Establishing an ongoing drug-free awareness program to inform employees about:
1. Degrees of drug abuse in the workplace;
2. The policy of maintaining a drug-free workplace;
3. Any available drug counseling, rehabilitation, and employee assistance programs; and
4. The penalties which may be imposed on employees for drug abuse violations occurring in the workplace.
(c) Making it a requirement that every employee to be engaged in the performance of the AGREEMENT be given a copy of the statement required by Subsection (a); (d) Notifying employees in the statement required by Subsection (a) that as a condition of employment under the AGREEMENT the employee will:
1. Abide by the term of the statement; and
2. Notify the employer in writing of any conviction for a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction. (e) Notifying CITY in writing within ten (10) calendar days after receiving notice under Subsection (d)(2) from an employee or otherwise receiving actual notice of such conviction. Employer of
July 2021– City of Fountain Valley 14 | Page
said convicted employee must provide notice, including conviction title, to the CITY; (f) Taking one of the following actions, within thirty (30) calendar days of receiving notice under Subsection (d)(2), with respect to any employee who is so convicted:
1. Taking appropriate action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or
2. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency.
(g) Making a good faith effort to continue to maintain a drug-free workplace through implementation of Sections (a), (b), (c), (d), (e), and (f).
42. Permits. The CONTRACTOR shall obtain from the CITY, County, State, or other responsible public agencies all licenses and permits, and pay all fees related thereto, necessary to complete the job.
43. Assignment. No assignment by the CONTRACTOR of this AGREEMENT or any part hereof, or of funds to be received hereunder, will be recognized by the CITY unless such assignment has had prior written approval and consent of the CITY and the Surety.
44. Safety and Site Condition. CONTRACTOR shall perform all operations with due regard for safety and in strict compliance with all applicable laws relating thereto. It shall be CONTRACTOR’s responsibility to keep the site in a clean, neat, and orderly condition. It shall also be CONTRACTOR’s duty to dust-palliate all working areas and access routes, if applicable. All operations shall be conducted by CONTRACTOR so that no fire hazards are created.
45. Utility Location. CITY acknowledges its responsibilities with respect to locating facilities pursuant to California Government Code Section 4215.
46. Trenching. If this AGREEMENT involves digging trenches or other excavations that extend deeper than four feet (4’) below the surface, CONTRACTOR shall promptly, and before the following conditions are disturbed, notify the CITY in writing, of any:
(a) Material that the CONTRACTOR believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law. (b) Subsurface or latent physical conditions at the site differing from those indicated. (c) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the AGREEMENT.
The CITY shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in the CONTRACTOR’s cost of, or the time required for, performance of any part of the work shall issue a change order in accordance with the procedures described in this AGREEMENT.
In the event that a dispute arises between the CITY and the CONTRACTOR whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the CONTRACTOR’s cost of, or time required for, performance of any part of the work, the CONTRACTOR shall not be excused from any scheduled completion date provided for by the AGREEMENT but shall proceed with all work to be
July 2021– City of Fountain Valley 15 | Page
performed under the AGREEMENT. The CONTRACTOR shall retain any and all rights provided either by this AGREEMENT or by law which pertain to the resolution of disputes and protests between the contracting parties provided that CONTRACTOR complies with Section 22 when asserting such claim.
47. Notices. The parties hereto agree that all formal notices required by this AGREEMENT may be provided to the following persons at the following addresses by sending the same by certified or registered mail as follows:
CITY: City Clerk
Fountain Valley City Hall
10200 Slater Avenue
Fountain Valley, California 92708
Layne Christensen Company
CONTRACTOR: 1717 W Park Avenue
Redlands, CA 92373
48. Gratuities. CONTRACTOR warrants that neither it nor any of its employees, agents, or representatives has offered or given any gratuities to CITY’s employees, agents, or representatives with a view toward securing this AGREEMENT or securing favorable treatment with respect thereto.
49. Conflict of Interest. CONTRACTOR warrants that he has no blood or marriage relationship with, and that he is not in any way associated with, any architect, engineer, or other preparer of the plans and specifications for this project.
50. Copeland "Anti-Kickback" Act. If applicable to this AGREEMENT, CONTRACTOR and its subcontractors shall comply with the provisions of the Copeland “Anti-Kickback” Act (18 U.S.C. Section 874), as supplemented in Department of Labor regulations, which Act provides that each contractor shall be prohibited from including, by any means, any person employed in the construction, completion, or repair of any public work, to give up any part of the compensation to which he is otherwise entitled.
51. Attorney’s Fees. In any action or proceeding brought by either party against the other party arising out of or in any way connected to this AGREEMENT, or where any provision hereof is validly asserted as a defense, the parties shall bear their own attorney’s fees, costs, and expenses. Nothing in this provision shall excuse CONTRACTOR’s duty to provide CITY with a defense at CONTRACTOR’s cost when CITY receives a complaint, petition, or other pleading from a third party requiring CITY to defend itself.
52. Assignment of Rights. Pursuant to Section 7103.5 of the Public Contract Code, in entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, the contractor or subcontractor offers and agrees to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C.
Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the awarding body tenders final payment to the contractor, without further acknowledgment by the parties.
53. SCAQMD and CARB Compliance. CONTRACTOR agrees to comply with all South Coast
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Air Quality Management District (SCAQMD) and California Air Resources Board (CARB) requirements, including, but not limited to, compliance with CARB Regulations limiting idling of self-propelled diesel-fueled on-road and off-road vehicles and equipment (25 HP and up) to no more than five (5) consecutive minutes as specified in Title 13 of the California Code of Regulations, section 2449 (d)(3), Idling.
54. Mined Construction Materials. CONTRACTOR shall not purchase mined construction material except from a mining operation that is currently identified in the list published pursuant to subdivision (b) of Section 2717 of the Public Resources Code. Refer to the current 3098 list for qualified mining operations at www.consrv.ca.gov/OMR/ab_3098_list/current_list.
IN WITNESS WHEREOF, the parties hereto have entered into this AGREEMENT the date and year first above written.
ATTEST: CITY OF FOUNTAIN VALLEY
City Clerk Mayor
APPROVED AS TO FORM:
HARPER & BURNS LLP
CONTRACTOR
Name: Layne Christensen Company
Attorneys for the City
Address: 1717 W Park Avenue
Redlands, CA 92373
APPROVED AS TO CONTENT:
By: Ricky Trujillo
______________________________
Director of Public Works
July 2021– City of Fountain Valley 17 | Page
State of California )
County of _____________________________ )
On__________________________ before me, __________________________________________, Date Here insert Name and Title of the Officer
Personally appeared _______________________________________________________________ Name(s) of Signer(s)
____________________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.
Signature____________________________________
Signature of Notary Public
A notary public or other officer completing this completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not truthfulness, accuracy, or validity of that document.
July 2021– City of Fountain Valley 18 | Page
PAYMENT BOND
PAGE 1
Bond No.
CITY OF FOUNTAIN VALLEY
PAYMENT BOND
(LABOR AND MATERIAL BOND)
KNOW ALL MEN BY THESE PRESENTS:
THAT, WHEREAS, CITY OF FOUNTAIN VALLEY, a municipal corporation, by minute order of the City Council, adopted on May 3, 2022, has awarded to
Layne Christensen Company
1717 W Park Avenue
Redlands, CA 92373
hereinafter designated as the “PRINCIPAL,” an AGREEMENT for the work described as follows: RFQ 21- 023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services Said AGREEMENT is fully incorporated herein by reference.
WHEREAS, said PRINCIPAL is required by the provisions of said AGREEMENT and of the Civil Code to furnish a bond in connection with said AGREEMENT, as hereinafter set forth.
NOW, THEREFORE, WE, the undersigned CONTRACTOR, as PRINCIPAL, and (Name and Address of Surety)
hereinafter designated as the “SURETY,” duly authorized to transact business under the laws of the State of California, as SURETY, are held and firmly bound unto the City of Fountain Valley, in the penal sum of:_____________________ ($__________), said sum being not less than one hundred percent (100%) of the estimated amount payable under the terms of the AGREEMENT for which payment well and truly be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that, if said PRINCIPAL or his subcontractors, or the heirs, executors, administrators, successors, or assigns thereof, shall fail to pay any of the persons named in Section 3181 of the Civil Code of the State of California for any materials, provisions, provender ,or other supplies used in, upon, for, or about the performance of the work contracted to be done, or for any work or labor performed by any such claimant or any amounts require deducted, withheld, and paid over to the Franchise Tax Board from the wages of employees of the CONTRACTOR and his subcontractors pursuant to Section 18806 of the Revenue and Taxation Code, with respect to such work and labor, then said SURETY will pay for the same, in an amount not exceeding the sum set forth hereinabove, and in addition, in case suit is brought upon the bond, will pay a reasonable attorney’s fee to be fixed by the court.
This bond shall inure to the benefit of any and all persons named in the aforesaid Civil Code Section 3181 so as to give a right of action to them or their assigns in any suit brought upon the bond.
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PAYMENT BOND
PAGE 2
Bond No.
Further, the said SURETY, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the AGREEMENT documents or of the work to be performed thereunder shall in any way affect its obligation on this bond, and it hereby waives notice of any and all such changes, extensions of time, and alterations or modifications of the AGREEMENT documents and/or of the work to be performed thereunder.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this ________ day of ________ , 2022.
CONTRACTOR
Layne Christensen Company
1717 W Park Avenue
Redlands, CA 92373
PRINCIPAL
By:
Company Representative
In accordance with the AGREEMENT for RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services, all bonds shall have been issued by an admitted surety insurer, and the CITY reserves the right to object to any such surety, in accordance with Code of Civil Procedure Section 995.660.
By signing below, SURETY certifies that the bonds are issued by admitted surety.
SURETY
By:
Company Representative
APPROVED AS TO FORM:
HARPER & BURNS LLP
Attorneys for the City
City of Fountain Valley
By /s/
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FAITHFUL PERFORMANCE BOND
PAGE 1
Bond No.
CITY OF FOUNTAIN VALLEY
FAITHFUL PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, WHEREAS, CITY OF FOUNTAIN VALLEY, a municipal corporation, by minute order of the City Council, adopted on May 3, 2022, has awarded to
Layne Christensen Company
1717 W Park Avenue
Redlands, CA 92373
hereinafter designated as the “PRINCIPAL,” an AGREEMENT for the work described as follows: RFQ 21- 023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services. Said AGREEMENT is fully incorporated herein by reference.
WHEREAS, the said PRINCIPAL is required under the terms of said AGREEMENT to furnish a bond for the faithful performance of said AGREEMENT.
NOW, THEREFORE, WE, the undersigned CONTRACTOR, as PRINCIPAL, and (Name and Address of Surety)
hereinafter designated as the “SURETY,” duly authorized to transact business under the laws of the State of California, as SURETY, are held and firmly bound unto the City of Fountain Valley, in the penal sum of:
___________________ ($______________), said sum being not less than one hundred percent (100%) of the estimated amount payable under the terms of the AGREEMENT for which payment well and truly be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that, if the above burden PRINCIPAL, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform all the undertakings, terms, covenants, conditions, and agreements in the said AGREEMENT and any alteration thereof made as therein provided, on his or their part, to be kept and performed, at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of Fountain Valley, its officers, and its agents, as therein stipulated, then this obligation shall become null and void, otherwise it shall be and remain in full force and virtue.
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FAITHFUL PERFORMANCE BOND
PAGE 2
Bond No.
In case suit is brought upon this bond, each party shall bear its own costs and attorney fees.
And the said SURETY, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the AGREEMENT or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the AGREEMENT or to the work or to the specifications.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _________ day of____________, 2022.
CONTRACTOR
Layne Christensen Company
1717 W Park Avenue
Redlands, CA 92373
PRINCIPAL
By:
Company Representative
RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services, all bonds shall have been issued by an admitted surety insurer, and the CITY reserves the right to object to any such surety, in accordance with Code of Civil Procedure Section 995.660.
By signing below, SURETY certifies that the bonds are issued by admitted surety.
SURETY
By:
Company Representative
APPROVED AS TO FORM:
HARPER & BURNS LLP
Attorneys for the City
City of Fountain Valley
By /s/
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Dear Contractor:
In entering into an agreement with the City of Fountain Valley, you must designate your form of business entity. There are three basic types of business entities. They are:
1. A Sole Proprietorship
(with or without a “dba”)
2. A Partnership
3. A Corporation
In entering into contracts with the City of Fountain Valley, please indicate the complete name of your business in one of the following acceptable formats:
1. John Smith, Sole Proprietor;
or
John Smith, Sole Proprietor,
doing business as “Acme Roofing”
2. Smith and Dokes, a California Partnership;
3. Smith Corporation, Inc.,
a California Corporation
In signing the agreement with the City of Fountain Valley, you or your agent must sign in one of the following manners so the capacity in which you or your agent is signing is clear:
1. ___________________________
John Smith, Sole Proprietor
2. Smith and Dokes
By: ______________________
John Smith, Partner
3. Smith Corporation, Inc.
By: ______________________
Vice President
Your Public Notary must indicate your capacity when acknowledging your signature.
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CONTRACT
CON-___-___
This AGREEMENT is made and entered into this 3rd day of May, 2022, by and between the CITY OF FOUNTAIN VALLEY, hereinafter referred to as “CITY,” and Weber Water Resources CA, LLC, hereinafter referred to as “CONTRACTOR.”
WITNESSETH
That for and in consideration of the promises and agreements hereinafter made and exchanged, CITY and CONTRACTOR mutually agree as follows:
SCOPE OF THE WORK AND CONTRACT SUM
1. Scope of the Work. CONTRACTOR shall perform all the work and shall provide and furnish all labor, materials, tools, expendable equipment, utility and transportation services required to construct RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services, (hereafter referred to as “PROJECT”).
2. Labor and Materials. All of said work to be performed and materials to be furnished shall be in strict accordance with the plans and specifications entitled Project No. RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services, and CONTRACTOR agrees to do everything required by this AGREEMENT, the plans and specifications, and the CONTRACT DOCUMENTS.
All labor, materials, tools, equipment, and services shall be performed under the direction, administration, and subject to the approval of CITY or its authorized representatives.
3. Contract Sum. CITY agrees to pay, and CONTRACTOR agrees to accept in full payment for the work above agreed to be done an amount not to exceed two million dollars ($2,000,000.00).
NOTICE TO PROCEED AND TIMING
4. Notice to Proceed. No work, services, material, or equipment shall be performed or furnished under this AGREEMENT unless and until a “Notice to Proceed” has been given to CONTRACTOR by CITY and all bonds and certificates of insurance required pursuant hereto have been furnished to and approved by CITY.
5. Term. This AGREEMENT shall commence on the date of execution of this AGREEMENT, and expire on May 3, 2025, subject to earlier termination as provided for herein. This AGREEMENT may be extended by the CITY for one (1) additional two (2) year term at the discretion and approval of the CITY.
6. Time of the Essence. Time is of the essence of this AGREEMENT.
JOB PROGRESS AND COOPERATION
7. Job Progress. CONTRACTOR agrees to maintain a realistic critical path analysis throughout the project. CONTRACTOR agrees to meet with CITY’s PROJECT MANAGER or designee on a weekly or other periodic basis, or as requested by CITY to review job progress. PROJECT MANAGER for purposes of this AGREEMENT shall be the Director of Public Works-City Engineer or such designee as has been given the authority for this project in a written designation. CONTRACTOR agrees to provide CITY with critical path analysis documentation whenever job progress is impacted so that the completion date may be affected or whenever delays or other impacts may give rise to CONTRACTOR’s claim for additional days or additional damages. Delay and other claims of damages based on CONTRACTOR’s planned early
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completion are prohibited.
8. Cooperation. CONTRACTOR agrees to cooperate with CITY’s PROJECT MANAGER or designee and to provide submittals and participate in meetings in a good faith effort to complete the project.
If disagreements arise, CONTRACTOR agrees to document the disagreement in accordance with these AGREEMENT provisions and provide CITY with early notice of the same for later resolution but shall continue to cooperate and prosecute the work to completion in a diligent manner. Nothing herein shall excuse CONTRACTOR’s strict compliance with Section 22 if additional time or money is sought.
9. CONTRACTOR’S Independent Investigation.
No plea of ignorance of conditions that exist or that may hereafter exist, or of conditions or difficulties that may be encountered in the execution of the work under this AGREEMENT, as a result of failure to make the necessary independent examinations and investigations, and no plea of reliance on initial investigations or reports prepared by CITY for purposes of letting this AGREEMENT out to bid, will be accepted as an excuse for any failure or omission on the part of the CONTRACTOR to fulfill in every detail all requirements of said AGREEMENT, specifications, and plans, nor will such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of time except as provided in Section 22 of this AGREEMENT.
Except as specifically provided in the CONTRACT DOCUMENTS, information provided for purposes of bidding do not represent “conditions indicated” as being in existence and are provided for the convenience of the parties in making their own investigation.
PREVAILING WAGES & LABOR, WAGE, AND HOURS LAWS
10. Compliance with the Davis-Bacon Act. This provision does not apply to this AGREEMENT.
11. Public Work/DIR Registration. Notice is provided pursuant to Labor Code Section 1781 that this is a “public work” as defined in Chapter 1, Part 7, Division 2 of the Labor Code, to which Section 1771 applies. CONTACTOR shall pay prevailing wages, unless exempt. All contractors and subcontractors working on this job shall be registered with the Department of Industrial Relations using online form 100.
12. Prevailing Wage Rates. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages can be found at http://www.dir.ca.gov/OPRL/PWD/index.htm and are on file at City Hall, which shall be made available to any interested party upon request. CONTACTOR shall post a copy of the determination of the director of the prevailing rate of per diem wages at each job site. Said per diem wages are deemed to include employer payments for health and welfare, pension, vacation and travel time, and subsistence pay, all in accordance with Section 1773.1 of the Labor Code.
13. Payroll Records. The provisions of Section 1776 of the Labor Code regarding the preparation, maintenance, and filing of payroll records are applicable to this AGREEMENT. Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Electronic certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or contain the same information. THE CONTRACTOR’S AND SUBCONTRACTOR’S PAYROLL RECORDS SHALL BE SUBMITTED TO CITY ON A WEEKLY BASIS.
THE CONTRACTOR SHALL BE RESPONSIBLE FOR SUBMITTAL OF SUB-CONTRACTOR’S PAYROLL RECORDS. Additionally, CONTRACTOR or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in Section 1776 subdivision (a) of the Labor Code. In the event that CONTRACTOR or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to CITY, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for
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each worker, until strict compliance is effectuated. CITY may deduct this penalty from any monies due or that may become due CONTRACTOR under this AGREEMENT.
14. Penalty. CONTRACTOR and any subcontractor under CONTRACTOR shall pay, as a penalty to CITY, as specified in section 1 of General Provision and CITY may deduct the penalty from any monies due or that may become due CONTRACTOR under this AGREEMENT. The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall also be paid to each worker by CONTRACTOR or subcontractor, in accordance with Section 1775 of the Labor Code of the State of California.
15. Apprentices. If applicable, the provisions of Labor Code Section 1777.5 requiring the use of apprentices in certain ratios to journeymen on the project are hereby imposed upon CONTRACTOR.
16. Legal Day’s Work. In the performance of this AGREEMENT, not more than eight (8) hours shall constitute a day’s work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in Labor Code Section 1815.
CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code of the State of California, and it is agreed that the CONTRACTOR shall forfeit to the CITY as a penalty the sum of Twenty-Five Dollars ($25.00) for each worker employed in the execution of this AGREEMENT by the CONTRACTOR or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said article. CITY may deduct this penalty from any sums owed pursuant to this AGREEMENT.
PROGRESS PAYMENTS AND RETENTION
17. Progress Payments. Pursuant to Public Contract Code Section 7201, prior to the fifteenth (15th) day of the month next following the commencement of the work, there shall be paid to CONTRACTOR a sum equal to ninety-five percent (95%) of the value of the work completed since the commencement of the work as determined by CITY and thereafter prior to the fifteenth (15th) day of each successive month as the work progresses. CONTRACTOR shall be paid such sum as will bring the payments up each month to ninety-five percent (95%) of the value of the work completed since the commencement of the work as determined by CITY, less all previous payments and authorized deductions, provided that CONTRACTOR submits his request for payment prior to the last Wednesday of each preceding month. Pursuant to Public Contract Code 7107, CITY shall make the final payment, if unencumbered, or any part thereof unencumbered, within sixty (60) days after the date of completion. Notwithstanding the foregoing, CONTRACTOR shall provide CITY with all documentation required by this AGREEMENT, including the Final Closeout Agreement and Release of All Claims, as well as any other documents required by the CONTRACT DOCUMENTS, such as as-builts, red-line plans, manufacturers and specific guarantees, and owner’s manuals prior to receiving final payment. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the City Engineer, stating that the work for which payment is demanded has been performed in accordance with the terms of the AGREEMENT, and that the amount stated in the certificate is due under the terms of the AGREEMENT. Partial payments on the AGREEMENT price shall not be considered as an acceptance of any part of the work. Nothing herein shall limit CITY’s right to withhold one hundred fifty percent (150%) of disputed amounts in the event of a good faith dispute.
18. Prompt Payments. CITY agrees to promptly make progress payments on undisputed and properly submitted payment requests within thirty (30) days and to comply with the provisions of Public Contract Code Section 20104.50.
19. Retention Securities. Pursuant to California Public Contract Code Section 22300, CONTRACTOR will be entitled to post approved securities with the CITY or an approved financial institution in order to have the CITY release funds retained by the CITY to insure performance of the AGREEMENT.
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20. Federal Participation. This provision does not apply to this AGREEMENT. If this project had involved federal funds, other provisions would be incorporated into this AGREEMENT. If those provisions had applied, the Davis-Bacon Act would govern the payment of prevailing wages.
CHANGE ORDERS / EXTRA TIME / EXTRA WORK
21. Request for Extra Time or Additional Compensation. The following provisions must be strictly complied with to obtain additional time to complete the job or to obtain additional compensation:
(a) Request for Change Order – Additional Time. The CONTRACTOR shall promptly notify the CITY of any delay and shall within ten (10) days from the beginning of any such delay notify the CITY in writing of the cause of the delay, and the CITY shall extend the time for completing the work if in its judgment the cause so merits. The CITY’s determination on this matter shall be final and conclusive on the parties hereto. CONTRACTOR shall be required to submit a Request for Change Order, as set forth in this AGREEMENT, to the CITY’s PROJECT MANAGER within ten (10) days of the beginning of such delay. No adjustment shall be allowed for such delay unless there is strict compliance with this contractual provision.
CONTRACTOR’s remedy shall be limited to the extra days granted and to any damages that it may be entitled to using the formula agreed to by the parties for all damages as provided in Section 22. (b) Request for Change Order – Additional Compensation Sought. (i) Should CONTRACTOR claim that the CITY is demanding extra work from it or consider any work demanded of it to be outside the requirements of this AGREEMENT or if it considers any instruction, ruling, or decision of the PROJECT MANAGER to be unfair, he shall within ten (10) days after any such demand is made, or instruction, ruling, or decision is given, file a written protest with the PROJECT MANAGER, stating clearly and in detail his objections and the reasons therefor.
Except for such protests and objections as are made of record, in the manner and within the time above stated, the CONTRACTOR shall be deemed to have waived and does hereby waive all claims for extra work, damages, and extensions of time on account of demands, instructions, rulings, and decision of the PROJECT MANAGER.
(ii) Should CONTRACTOR claim that additional compensation is due it because of an unforeseen condition, CONTRACTOR shall bring that to CITY’s attention promptly and, within ten (10) days, shall submit a written request for change order to CITY. (c) Request for Change Order – City Form to Be Used. CITY’s Request for Change Order form, which is attached hereto as part of this AGREEMENT, shall be the form that must be submitted in a timely fashion for a request for either additional time or additional compensation. By initialing, the CONTRACTOR specifically agrees to use said form for those purposes and understands that, if he does not submit that form in a timely manner, he waives the right to request additional time or compensation. No oral modifications or other forms of communication shall be accepted as compliance with this provision.
Contractor’s Initials ________
(d) Change Order. Should CITY agree that a change order is warranted for either additional time or compensation, a written change order shall be executed. If CITY does not agree to the change order, and CONTRACTOR has provided timely notices and submitted its written request for change order in a timely manner, CONTRACTOR will have preserved the issue for later resolution in compliance with other procedures set forth in this AGREEMENT or as the law may otherwise allow. (e) Change Order Authority. The following authority is hereby given to make change orders:
(i) Change Orders for Extra Time. The City Manager, Director of Public Works, or
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PROJECT MANAGER shall have the authority to grant extra days without limit. (ii) Change Orders for Extra Compensation. The Director of Public Works shall have the authority to make change orders up to an aggregate amount of Ten Percent (10%) of the original contract amount.
22. Damages / Extra Work Compensation. The parties have agreed to modify the formula for damages set forth in the Standard Specifications for Public Works Construction. The parties agree that the following damage formula shall be used to measure all of CONTRACTOR’s damages or extra work required by this job. CONTRACTOR shall be limited to the following:
Direct costs Mark-up
Labor 20%
Materials 15%
Equipment Rental 15%
Subcontracted work 10% (first $5,000)
Subcontracted work 5% (work in excess of first $5,000)
Specialty Subcontracting
(required by extra work) 5% (Provided at least three (3) competitive bids are obtained and CONTRACTOR selected the
lowest bidder)
Excluded from recovery shall be so-called “Eichleay damages,” including, but not limited to, home office overhead, insurance and bonding costs, lost bonding capacity, lost profits, and lost interest.
CONTRACTOR acknowledges that his recovery for damages or extra work is limited as provided in this Section.
Contractor’s Initials ________
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SUBCONTRACTING
23. Subcontracting. CONTRACTOR acknowledges that he or she is aware of the provisions of the “Subletting and Subcontracting Fair Practices Act” (Public Contract Code Sections 4100 et seq.) and agrees to comply with all applicable provisions thereof. If any part of the work to be done under this AGREEMENT is subcontracted, the subcontract shall be in writing and shall provide that all work to be performed thereunder shall be performed in accordance with this AGREEMENT. Upon request, certified copies of any or all subcontracts shall be furnished to CITY. The subcontracting of any or all of the work to be done will in no way relieve CONTRACTOR of any part of his responsibility under the AGREEMENT.
Pursuant to Public Contract Code Section 4110, CONTRACTOR’s violation of any of the provisions of the Subletting and Subcontracting Fair Practices Act violates this AGREEMENT and CITY may cancel this AGREEMENT or assess CONTRACTOR a penalty of not more than 10 percent (10%) of the subcontract involved. CITY may deduct this penalty from any monies due or that may become due to CONTRACTOR for work performed under this AGREEMENT.
All persons engaged in the work, including subcontractors, will be considered as employees of CONTRACTOR. CONTRACTOR will be held responsible for their work. CITY will deal directly with and make all payments to CONTRACTOR.
STOP NOTICES
24. Additional Costs. Pursuant to Civil Code Section 9358, upon receipt of a stop notice, CITY shall withhold from payment to CONTRACTOR sufficient funds due or to become due to pay the claim stated in the stop notice and provide for reasonable costs of litigation. One hundred twenty five percent (125%) of the amount of the claim stated in the stop notice shall be a reasonable amount to withhold. In addition to the remedies authorized by law, CONTRACTOR shall reimburse CITY for administrative expenses incurred in processing Notices to Withhold, Stop Notices, or similar legal documents arising out of a failure of CONTRACTOR to pay for labor or materials. Said obligation shall be provided for in CONTRACTOR’s payment bond. CITY shall have the right to deduct any such expenses from amounts due or to become to CONTRACTOR under this AGREEMENT.
COMPLETION
25. CONTRACTOR’S Waiver. CONTRACTOR agrees to execute a Final Close Out Agreement and Release of All Claims on CITY’s form. The execution by CONTRACTOR of the Final Close Out Agreement and Release of All Claims shall constitute a waiver of all claims against CITY under or arising out of this AGREEMENT unless otherwise stated in said document.
26. Guarantees. CONTRACTOR shall and hereby does guarantee all work for a period of one (1) year after the date of acceptance of the work by the CITY and shall repair and replace any and all such work, together with any other work which may be displaced in so doing, that may prove defective in workmanship and/or materials within the one (1) year period from the date of acceptance, without expense whatsoever to the CITY, ordinary wear and tear and usual abuse or neglect excepted. In the event of failure to comply with the aforementioned conditions within five (5) days after being notified in writing, the CITY is hereby authorized to proceed to have the defects repaired and made good at the expense of the CONTRACTOR, who shall pay the cost and charges therefor immediately on demand. This guarantee shall be in addition to any manufacturer or specific guarantees that may be required. CONTRACTOR shall provide those manufacturer and specific guarantees before CONTRACTOR may claim entitlement to final payment.
INDEMNIFICATION
27. Indemnity. CONTRACTOR shall indemnify, defend with legal counsel approved by CITY,
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and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with CONTRACTOR's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the CITY. Should conflict of interest principles preclude a single legal counsel from representing both CITY and CONTRACTOR, or should CITY otherwise find CONTRACTOR’s legal counsel unacceptable, then CONTRACTOR shall reimburse the CITY its costs of defense, including without limitation reasonable legal counsels fees, expert fees and all other costs and fees of litigation. The CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the CONTRACTOR’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.
CONTRACTOR obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of CITY under any provision of this agreement, CONTRACTOR shall not be required to indemnify and hold harmless CITY for liability attributable to the active negligence of CITY, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where CITY is shown to have been actively negligent and where CITY active negligence accounts for only a percentage of the liability involved, the obligation of CONTRACTOR will be for that entire portion or percentage of liability not attributable to the active negligence of CITY.
Notwithstanding any limits provided for indemnification, CONTRACTOR’s duty to defend is broader.
CONTRACTOR agrees to provide CITY with a defense, with counsel reasonably acceptable to CITY, or pay CITY’s costs of defense, upon service of any complaint, petition, or other pleading that requires CITY to defend itself in any proceeding arising out of the work described in this AGREEMENT. Said obligation shall not extend to disputes between CONTRACTOR and CITY.
INSURANCE
28. Insurance. Without limiting CONTRACTOR’s indemnification of CITY, and prior to commencement of Work, CONTRACTOR shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to CITY.
29. General liability insurance. CONTRACTOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability, and a $2,000,000 completed operations aggregate.
Automobile liability insurance. CONTRACTOR shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Umbrella or excess liability insurance. CONTRACTOR shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than $4,000,000 that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above,
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including commercial general liability and employer’s liability Such policy or policies shall include the following terms and conditions:
A drop down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectable in whole or in part for any reason; Pay on behalf of wording as opposed to reimbursement;
Concurrency of effective dates with primary policies; and Policies shall “follow form” to the underlying primary policies.
Insureds under primary policies shall also be insureds under the umbrella or excess policies.
Workers’ compensation insurance. CONTRACTOR shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for CONTRACTOR ’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code In addition, CONTRACTOR shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.
CONTRACTOR shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.
Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to CITY providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.
Products/completed operations coverage shall extend a minimum of three years after project completion.
Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The CITY, its officials, officers, agents, and employees, shall be included as insureds under the policy.
Builder’s risk insurance. Upon commencement of construction and with approval of CITY, CONTRACTOR shall obtain and maintain builder’s risk insurance as specified below.
The named insureds shall be CONTRACTOR, all Subcontractors (excluding those solely responsible for design Work) of any tier, suppliers, and CITY and its officers, officials, employees, and agents.
CONTRACTOR shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to CITY.
Policy shall be provided for replacement value on an "all risk" basis. There shall be no coinsurance penalty provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, Nonconforming Work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) transit coverage, including ocean marine coverage (unless insured by the supplier), with sublimits sufficient to insure the full replacement value of any key equipment item; and (5) coverage with sublimits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site. Such insurance shall be on a form acceptable to CITY to ensure adequacy of terms and sublimit.
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Proof of insurance. CONTRACTOR shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsement must be approved by CITY’s risk manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. CONTRACTOR shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONTRACTOR, his agents, representatives, employees or subcontractors. CONTRACTOR must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. CITY and its officers, officials, employees, and agents shall continue as additional insureds under such policies.
CITY’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from CONTRACTOR payments.
In the alternative, CITY may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY’s risk manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONTRACTOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONTRACTOR hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its sub consultants.
Enforcement of contract provisions (non estoppel). CONTRACTOR acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONTRACTOR of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
Notice of cancellation. CONTRACTOR agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents shall be additional insureds under such policies. This provision shall also apply to any excess liability policies.
CITY’s right to revise requirements. The CITY reserves the right at any time during the term of the
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contract to change the amounts and types of insurance required by giving the CONTRACTOR a ninety (90)- day advance written notice of such change. If such change results in substantial additional cost to the CONTRACTOR, the CITY and CONTRACTOR may renegotiate CONTRACTOR’s compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY.
CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.
Timely notice of claims. CONTRACTOR shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONTRACTOR’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. CONTRACTOR shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.
30. Workers’ Compensation.
CONTRACTOR shall carry Workers’ Compensation Insurance and require all subcontractors to carry Workers’ Compensation Insurance as required by the Labor Code of the State of California. CONTRACTOR, by executing this AGREEMENT, hereby certifies:
“I am aware of the provisions of Section 3700 of the 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 I will comply with such provisions before commencing the performance of the work of this AGREEMENT.”
CONTRACTOR acknowledges that it is unlawful and a crime to intentionally make false statements about employees that misclassify their job duties to obtain lesser premium costs or for other improper purposes.
CONTRACTOR agrees that if it makes false statements about its employees for the purpose of obtaining lower workers’ compensation premiums or for other unlawful purposes, it shall be considered a material breach of this AGREEMENT.
31. Bonds. Within the time period set forth in the CONTRACT DOCUMENTS and prior to commencing the Work on the Project, the CONTRACTOR shall file with the CITY good and sufficient labor and material payment bond (Payment Bond) and performance bond (Performance Bond) in the amount of one hundred percent (100%) of the Contract Sum covering performance of the Work other than the professional design services portion of the Work. The Performance Bond and Payment Bond shall be in the form required by the CONTRACT DOCUMENTS. The amounts of the Payment Bond and Performance Bond shall be increased as, when and in the amount of any Change Orders that are executed increasing the Contract Sum, the CONTRACTOR shall, upon request by the CITY, provide evidence of such increases.
Should the Payment Bond or Performance Bond or any Surety on such bond become or be determined by the CITY to be insufficient, it shall be replaced within ten days by a bond that fully complies with the requirements of this Section. No further payments to the AGREEMENT for the Work performed shall be made or due until the CONTRACTOR has fully complied with the requirements of this Section.
Duration. The Payment Bond shall remain in effect until acceptance of the Work and payment of all stop notices and claims by the CONTRACTOR or the Subcontractors, of any Tier, have been satisfied. The Performance Bond shall remain in effect and assure faithful performance of all the CONTRACTOR’s obligations under the CONTRACT DOCUMENTS, including, without limitation, all obligations that survive final completion or termination, such as, but not limited to, CONTRACTOR’s warranty, commissioning and indemnity obligations.
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Surety. At the time the Contract is signed and at all times thereafter until Final Payment has been made by the CITY, the Surety on the Payment Bond shall be an Admitted Surety and the Surety on the Performance Bond shall be a licensed Surety in good standing with the California Department of Insurance, and having an A.M. Best's Insurance Rating of not less than A-: VI.
Premiums. The premiums for all bonds are included in the Contract Sum and shall be paid by the CONTRACTOR.
Obligee. The Payment Bond and Performance Bond shall each name the CITY as obligee. All bonds purchased by the Subcontractors shall name the CONTRACTOR and the CITY as dual obligees.
No exoneration. Changes, Change Orders, Unilateral Change Orders, Field Orders, Modifications and adjustments to the Contract Sum or Contract Time shall in no way release or exonerate the CONTRACTOR or its Surety from their obligations, and notice thereof shall be waived by the Surety. The foregoing provision shall be included in the terms of the Payment Bond, Performance Bond and any bonds obtained by the Subcontractors.
Communications. The CITY shall have the right to communicate with the CONTRACTOR’s sureties with respect to matters that are related to the CONTRACTOR’s performance of its obligations under the CONTRACT DOCUMENTS. Such communications shall not create, or be interpreted as creating, any contractual relationship between the CITY and the Surety.
No limitation. The requirements of this Section pertaining to the Performance Bond and the Payment Bond shall be without limitation to any other obligations the CONTRACTOR may have under Applicable Law to provide bonding for the benefit of and to assure payment to the Subcontractors or Subconsultants performing the Work for the Project.
TERMINATION
32. Termination.
A. If CONTRACTOR should fail to comply with any of the provisions hereof, or in the event CONTRACTOR should become the subject of a proceeding under state or federal law for relief of debtors, or if CONTRACTOR makes an assignment for the benefit of creditors, CITY shall have the right to hold CONTRACTOR in default and cancel this AGREEMENT in whole or in part.
B. Should CONTRACTOR, at any time during the progress of the work, refuse or neglect to supply sufficient material or labor, or fail in compliance with any provision of this AGREEMENT, CITY shall have the right, without prejudice to any other right or remedy it may have, to provide such materials and labor, or make good such deficiencies as CITY may deem expedient after three (3) days’ notice in writing, delivered or mailed to CONTRACTOR at his last address on file with CITY, and CONTRACTOR shall be liable for the cost and expense thereof which may be deducted by CITY from any money due or that may become due CONTRACTOR.
C. Without limiting any rights which CITY may have by reason of any default by CONTRACTOR hereunder, CITY reserves the right to terminate this AGREEMENT in whole or in part at its convenience. In such event CITY shall compensate CONTRACTOR, subject to deduction for previous payments and authorized deductions: (i) by reimbursing CONTRACTOR for reasonable and necessary expenditures and costs that are actually incurred in performing under this AGREEMENT, (ii) by reimbursing CONTRACTOR for reasonable and necessary expenditures made and costs actually incurred with CITY’s prior written approval in settling or discharging outstanding commitments entered into by CONTRACTOR in performing under this AGREEMENT, and (iii) by paying CONTRACTOR as a profit, insofar as a profit is realized
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hereunder, an amount equal to the profit on the entire AGREEMENT estimated at the time of termination, multiplied by the percentage of completion of the work. In no event, however, will the compensation to CONTRACTOR exceed the total AGREEMENT price less payments previously made and less the AGREEMENT price of work not terminated. Upon receipt of any notice of termination, CONTRACTOR shall, unless the notice otherwise directs, (i) immediately discontinue the work and the placing of all orders and subcontracts in connection with this AGREEMENT, (ii) immediately cancel all existing orders and subcontracts made hereunder, and (iii) immediately transfer to CITY all materials, supplies, work-in-process, appliances, facilities, equipment, machinery, and tools acquired by CONTRACTOR in connection with the performance of this AGREEMENT.
CLAIM RESOLUTION
33. Resolution of Claims. For all claims that are Three Hundred Seventy-Five Thousand Dollars ($375,000.00) or less, the provisions of Public Contract Code Section 20104 et seq. (Article 1.5 - Resolution of Construction Claims) shall be followed.
34. Notice to Contractor of Claims. CITY shall provide notice to CONTRACTOR upon receipt of any third-party claim related to the AGREEMENT.
CONTRACT DOCUMENTS AND INTERPRETATION
35. Other Documents Included. It is further agreed by the parties hereto that the following documents are incorporated herein by reference and are to be read and construed together as the full, complete, and integrated terms of this AGREEMENT and, collectively with this AGREEMENT, may be referred to as the CONTRACT DOCUMENTS:
Notice Inviting Bids
Instructions to Bidders
General Provisions (incorporating portions of the Caltrans Standard Specifications) Special Provisions (Construction Details)
Construction Provisions (Individual Bid Items)
Proposal
Construction Plans
City Public Works Standard Plans
City Request for Change Order/Change Order
Notice to Proceed
Labor and Materials Bond
Performance Bond
Final Closeout Agreement
36. Interpretation of Incorporated Documents. In the event of any conflict, inconsistency, or incongruity between the provisions of this AGREEMENT and the provisions of any document listed in Section 35 hereof, the provisions of this AGREEMENT shall prevail unless a contrary intent is shown. The parties acknowledge that the Caltrans Standard Specifications is a document that is prepared for use in state street projects and is to be used to supplement this AGREEMENT. As used in the those Standard Specifications, “Engineer” shall refer to CITY’s Director of Public Works-City Engineer, the Attorney General shall mean the Attorney for the City, and laws that pertain exclusively to state projects or contracts shall not apply but instead those provisions pertaining to CITY projects and CITY contracts shall be applied. To the extent the Standard Specifications provide for additional procedures that are not inconsistent with the provisions of this AGREEMENT, those additional procedures shall be interpreted to supplement this AGREEMENT.
This AGREEMENT shall be interpreted as though it had been drafted by the CITY and the CONTRACTOR equally. This AGREEMENT shall be interpreted according to the laws of the State of California.
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37. Integration/No Oral Modifications. This AGREEMENT integrates all understandings of the parties. Any amendment to this AGREEMENT must be made in writing and signed by the parties with legal authority to execute the same. CONTRACTOR is aware that CITY is a general law city and that, pursuant to Government Code Section 40602, contract amendments may only be entered into by compliance with those formalities. Notwithstanding the above, requests for additional time or compensation may be made by following the procedures and using the form incorporated into this AGREEMENT. The limits of authority to enter into such amendments (change orders) shall be those provided in Section 22 of this AGREEMENT.
38. Effect of Invalidity. The invalidity in whole or in part of any provision hereof shall not affect the validity of any other provision.
MISCELLANEOUS
39. Discrimination, Minorities, Aliens. The CONTRACTOR shall not discriminate nor allow its employees, agents, principals, or subcontractors to discriminate against any employee or applicant for employment on the basis of race, religious creed, national origin, or sex. CONTRACTOR shall take affirmative steps to hire qualified minority individuals when job opportunities occur and utilize local business firms when possible and when consistent with California Constitution Article 1, Section 31 (a) [Proposition 209].
40. Equal Employment Opportunity. CONTRACTOR shall comply with all provisions of Executive Order 11246, entitled “Equal Employment Opportunity” and amended by Executive Order 11375, and as supplemented in Department of Labor Regulations (41 CFR part 60).
41. Drug-Free Work. CONTRACTOR agrees to provide a drug-free workplace in accordance with 24 CFR part 24, sub-part F. Under 24 CFR part 24, sub-part F, the CONTRACTOR will provide certification in writing that it will provide a drug-free workplace by:
(a) Publicizing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying the action it will take against employees for violation of such prohibition; (b) Establishing an ongoing drug-free awareness program to inform employees about:
1. Degrees of drug abuse in the workplace;
2. The policy of maintaining a drug-free workplace;
3. Any available drug counseling, rehabilitation, and employee assistance programs; and
4. The penalties which may be imposed on employees for drug abuse violations occurring in the workplace.
(c) Making it a requirement that every employee to be engaged in the performance of the AGREEMENT be given a copy of the statement required by Subsection (a); (d) Notifying employees in the statement required by Subsection (a) that as a condition of employment under the AGREEMENT the employee will:
1. Abide by the term of the statement; and
2. Notify the employer in writing of any conviction for a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction. (e) Notifying CITY in writing within ten (10) calendar days after receiving notice under Subsection (d)(2) from an employee or otherwise receiving actual notice of such conviction. Employer of
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said convicted employee must provide notice, including conviction title, to the CITY; (f) Taking one of the following actions, within thirty (30) calendar days of receiving notice under Subsection (d)(2), with respect to any employee who is so convicted:
1. Taking appropriate action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or
2. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency.
(g) Making a good faith effort to continue to maintain a drug-free workplace through implementation of Sections (a), (b), (c), (d), (e), and (f).
42. Permits. The CONTRACTOR shall obtain from the CITY, County, State, or other responsible public agencies all licenses and permits, and pay all fees related thereto, necessary to complete the job.
43. Assignment. No assignment by the CONTRACTOR of this AGREEMENT or any part hereof, or of funds to be received hereunder, will be recognized by the CITY unless such assignment has had prior written approval and consent of the CITY and the Surety.
44. Safety and Site Condition. CONTRACTOR shall perform all operations with due regard for safety and in strict compliance with all applicable laws relating thereto. It shall be CONTRACTOR’s responsibility to keep the site in a clean, neat, and orderly condition. It shall also be CONTRACTOR’s duty to dust-palliate all working areas and access routes, if applicable. All operations shall be conducted by CONTRACTOR so that no fire hazards are created.
45. Utility Location. CITY acknowledges its responsibilities with respect to locating facilities pursuant to California Government Code Section 4215.
46. Trenching. If this AGREEMENT involves digging trenches or other excavations that extend deeper than four feet (4’) below the surface, CONTRACTOR shall promptly, and before the following conditions are disturbed, notify the CITY in writing, of any:
(a) Material that the CONTRACTOR believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law. (b) Subsurface or latent physical conditions at the site differing from those indicated. (c) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the AGREEMENT.
The CITY shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in the CONTRACTOR’s cost of, or the time required for, performance of any part of the work shall issue a change order in accordance with the procedures described in this AGREEMENT.
In the event that a dispute arises between the CITY and the CONTRACTOR whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the CONTRACTOR’s cost of, or time required for, performance of any part of the work, the CONTRACTOR shall not be excused from any scheduled completion date provided for by the AGREEMENT but shall proceed with all work to be
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performed under the AGREEMENT. The CONTRACTOR shall retain any and all rights provided either by this AGREEMENT or by law which pertain to the resolution of disputes and protests between the contracting parties provided that CONTRACTOR complies with Section 22 when asserting such claim.
47. Notices. The parties hereto agree that all formal notices required by this AGREEMENT may be provided to the following persons at the following addresses by sending the same by certified or registered mail as follows:
CITY: City Clerk
Fountain Valley City Hall
10200 Slater Avenue
Fountain Valley, California 92708
Weber Water Resources CA, LLC
CONTRACTOR: 1785 Container Circle
Jurupa Valley, CA 92509
48. Gratuities. CONTRACTOR warrants that neither it nor any of its employees, agents, or representatives has offered or given any gratuities to CITY’s employees, agents, or representatives with a view toward securing this AGREEMENT or securing favorable treatment with respect thereto.
49. Conflict of Interest. CONTRACTOR warrants that he has no blood or marriage relationship with, and that he is not in any way associated with, any architect, engineer, or other preparer of the plans and specifications for this project.
50. Copeland "Anti-Kickback" Act. If applicable to this AGREEMENT, CONTRACTOR and its subcontractors shall comply with the provisions of the Copeland “Anti-Kickback” Act (18 U.S.C. Section 874), as supplemented in Department of Labor regulations, which Act provides that each contractor shall be prohibited from including, by any means, any person employed in the construction, completion, or repair of any public work, to give up any part of the compensation to which he is otherwise entitled.
51. Attorney’s Fees. In any action or proceeding brought by either party against the other party arising out of or in any way connected to this AGREEMENT, or where any provision hereof is validly asserted as a defense, the parties shall bear their own attorney’s fees, costs, and expenses. Nothing in this provision shall excuse CONTRACTOR’s duty to provide CITY with a defense at CONTRACTOR’s cost when CITY receives a complaint, petition, or other pleading from a third party requiring CITY to defend itself.
52. Assignment of Rights. Pursuant to Section 7103.5 of the Public Contract Code, in entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, the contractor or subcontractor offers and agrees to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C.
Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the awarding body tenders final payment to the contractor, without further acknowledgment by the parties.
53. SCAQMD and CARB Compliance. CONTRACTOR agrees to comply with all South Coast
July 2021– City of Fountain Valley 16 | Page
Air Quality Management District (SCAQMD) and California Air Resources Board (CARB) requirements, including, but not limited to, compliance with CARB Regulations limiting idling of self-propelled diesel-fueled on-road and off-road vehicles and equipment (25 HP and up) to no more than five (5) consecutive minutes as specified in Title 13 of the California Code of Regulations, section 2449 (d)(3), Idling.
54. Mined Construction Materials. CONTRACTOR shall not purchase mined construction material except from a mining operation that is currently identified in the list published pursuant to subdivision (b) of Section 2717 of the Public Resources Code. Refer to the current 3098 list for qualified mining operations at www.consrv.ca.gov/OMR/ab_3098_list/current_list.
IN WITNESS WHEREOF, the parties hereto have entered into this AGREEMENT the date and year first above written.
ATTEST: CITY OF FOUNTAIN VALLEY
City Clerk Mayor
APPROVED AS TO FORM:
HARPER & BURNS LLP
CONTRACTOR
Name: Weber Water Resources CA, LLC
Attorneys for the City
Address: 1785 Container Circle
Jurupa Valley, CA 92509
APPROVED AS TO CONTENT:
By: Lisa Hargis
______________________________
Director of Public Works
July 2021– City of Fountain Valley 17 | Page
State of California )
County of _____________________________ )
On__________________________ before me, __________________________________________, Date Here insert Name and Title of the Officer
Personally appeared _______________________________________________________________ Name(s) of Signer(s)
____________________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.
Signature____________________________________
Signature of Notary Public
A notary public or other officer completing this completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not truthfulness, accuracy, or validity of that document.
July 2021– City of Fountain Valley 18 | Page
PAYMENT BOND
PAGE 1
Bond No.
CITY OF FOUNTAIN VALLEY
PAYMENT BOND
(LABOR AND MATERIAL BOND)
KNOW ALL MEN BY THESE PRESENTS:
THAT, WHEREAS, CITY OF FOUNTAIN VALLEY, a municipal corporation, by minute order of the City Council, adopted on May 3, 2022, has awarded to
Weber Water Resources CA, LLC
1785 Container Circle
Jurupa Valley, CA 92509
hereinafter designated as the “PRINCIPAL,” an AGREEMENT for the work described as follows: RFQ 21- 023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services.Said AGREEMENT is fully incorporated herein by reference.
WHEREAS, said PRINCIPAL is required by the provisions of said AGREEMENT and of the Civil Code to furnish a bond in connection with said AGREEMENT, as hereinafter set forth.
NOW, THEREFORE, WE, the undersigned CONTRACTOR, as PRINCIPAL, and (Name and Address of Surety)
hereinafter designated as the “SURETY,” duly authorized to transact business under the laws of the State of California, as SURETY, are held and firmly bound unto the City of Fountain Valley, in the penal sum of:_____________________ ($__________), said sum being not less than one hundred percent (100%) of the estimated amount payable under the terms of the AGREEMENT for which payment well and truly be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that, if said PRINCIPAL or his subcontractors, or the heirs, executors, administrators, successors, or assigns thereof, shall fail to pay any of the persons named in Section 3181 of the Civil Code of the State of California for any materials, provisions, provender ,or other supplies used in, upon, for, or about the performance of the work contracted to be done, or for any work or labor performed by any such claimant or any amounts require deducted, withheld, and paid over to the Franchise Tax Board from the wages of employees of the CONTRACTOR and his subcontractors pursuant to Section 18806 of the Revenue and Taxation Code, with respect to such work and labor, then said SURETY will pay for the same, in an amount not exceeding the sum set forth hereinabove, and in addition, in case suit is brought upon the bond, will pay a reasonable attorney’s fee to be fixed by the court.
This bond shall inure to the benefit of any and all persons named in the aforesaid Civil Code Section 3181 so as to give a right of action to them or their assigns in any suit brought upon the bond.
July 2021– City of Fountain Valley 19 | Page
PAYMENT BOND
PAGE 2
Bond No.
Further, the said SURETY, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the AGREEMENT documents or of the work to be performed thereunder shall in any way affect its obligation on this bond, and it hereby waives notice of any and all such changes, extensions of time, and alterations or modifications of the AGREEMENT documents and/or of the work to be performed thereunder.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this ________ day of ________ , 2022.
CONTRACTOR
Weber Water Resources CA, LLC
1785 Container Circle
Jurupa Valley, CA 92509
PRINCIPAL
By:
Company Representative
In accordance with the AGREEMENT for RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services, all bonds shall have been issued by an admitted surety insurer, and the CITY reserves the right to object to any such surety, in accordance with Code of Civil Procedure Section 995.660.
By signing below, SURETY certifies that the bonds are issued by admitted surety.
SURETY
By:
Company Representative
APPROVED AS TO FORM:
HARPER & BURNS LLP
Attorneys for the City
City of Fountain Valley
By /s/
July 2021– City of Fountain Valley 20 | Page
FAITHFUL PERFORMANCE BOND
PAGE 1
Bond No.
CITY OF FOUNTAIN VALLEY
FAITHFUL PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, WHEREAS, CITY OF FOUNTAIN VALLEY, a municipal corporation, by minute order of the City Council, adopted on May 3, 2022, has awarded to
Weber Water Resources CA, LLC
1785 Container Circle
Jurupa Valley, CA 92509
hereinafter designated as the “PRINCIPAL,” an AGREEMENT for the work described as follows: RFQ 21- 023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services. Said AGREEMENT is fully incorporated herein by reference.
WHEREAS, the said PRINCIPAL is required under the terms of said AGREEMENT to furnish a bond for the faithful performance of said AGREEMENT.
NOW, THEREFORE, WE, the undersigned CONTRACTOR, as PRINCIPAL, and (Name and Address of Surety)
hereinafter designated as the “SURETY,” duly authorized to transact business under the laws of the State of California, as SURETY, are held and firmly bound unto the City of Fountain Valley, in the penal sum of:
___________________ ($______________), said sum being not less than one hundred percent (100%) of the estimated amount payable under the terms of the AGREEMENT for which payment well and truly be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that, if the above burden PRINCIPAL, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform all the undertakings, terms, covenants, conditions, and agreements in the said AGREEMENT and any alteration thereof made as therein provided, on his or their part, to be kept and performed, at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of Fountain Valley, its officers, and its agents, as therein stipulated, then this obligation shall become null and void, otherwise it shall be and remain in full force and virtue.
July 2021– City of Fountain Valley 21 | Page
FAITHFUL PERFORMANCE BOND
PAGE 2
Bond No.
In case suit is brought upon this bond, each party shall bear its own costs and attorney fees.
And the said SURETY, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the AGREEMENT or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the AGREEMENT or to the work or to the specifications.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _________ day of____________, 2022.
CONTRACTOR
Weber Water Resource CA, LLC
1785 Container Circle
Jurupa Valley, CA 92509
PRINCIPAL
By:
Company Representative
RFQ 21-023 Water Well, Pump and Motor Maintenance, Repair and Rehabilitation Services, all bonds shall have been issued by an admitted surety insurer, and the CITY reserves the right to object to any such surety, in accordance with Code of Civil Procedure Section 995.660.
By signing below, SURETY certifies that the bonds are issued by admitted surety.
SURETY
By:
Company Representative
APPROVED AS TO FORM:
HARPER & BURNS LLP
Attorneys for the City
City of Fountain Valley
By /s/
FIJMP
159 N. ACACTA STREET * SA|IDIMAS, CA9t773
PHOITIE: (909) 599-9606 * FAX: (909) 599-6238
CAMARILLO, CA 93010 * PIIONE: (805) 482-1215
www.genpump.com
WELL & PUMP SERVICE SINCE 1952
Serving Southern California and Central Coast
Lic. #496765
Request for alifications
As-Needed Water Well, Pump and Motor Maintenance,
Repair and Rehabilitation Services
RF'Q 2l-023
March 8,2022 @ 4:00 pm
Prepared by
Michael Garcia
General Pump Company, fnc.
For The
City of Fountain Valley
10200 Slater Ave
Fountain Valley, CA 92708
INDEX OF CONTENTS
Section 1-CoverLetter
Description
Cover Letter
Section 2- Company Background
Description
GPC Statement of Qualifications
Team Or ganization Breakdown
Key Facts
Facility Photos
Airburst Brochure & Process and Equipment Comparisons
Airburst Case Studies
W-9 form
Contractors State License
DIR - Public Works Contractor Registration
Section 3 - Contractor Qualifications
Description
Key Personnel Description
Well Preventative Maintenance References
Client References
Section 4 - Proposed Approach to RFQ
Description
Scope of Work Overview
Section 5 - Cost / Fee Schedule
Description
Rate Sheet
Section 1
Cover Letter
@ffimb 159 N. ACACIA STREET * SAN DTMAS, CL9t773
PHONE: (909) 599-9606 * FAX: (909) s99-6238
CAMARILLO, CA 93010 * PHONE: (805) 482-1215
www.genpump.com
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WELL & PUMP SERVICE SINCE 1952
Serving Soulhern Caldornio and Central Cousl
Lic. #496765
City of Fountain Valley
10200 Slater Ave
Fountain Valley, California 92708
March 8,2022
Subject: Cover Letter: As- Needed Water llell, Pump and Motor Maintenance Repair and Rehabilitation Services - RFQ 2l-023
General Pump Company, Inc. (GPC) is pleased to provide our cover letter and proposal for the above referenced on-call maintenance agreement RFQ. This cover letter is intended to provide a summation of our qualifications, along with clarifications associated with our proposal and contractor capabilities associated with this RFQ. Our proposal acknowledges receipt of the project plans, specifications, and acceptance to the terms and conditions in City of Fountain Valley's standard contract.
GPC has been doing business in the water industry for 69 years, with all work being performed out of our 2 main facilities: San Dimas, CA and Camarillo, CA. Both facilities have a fuIlservice pump repair center and a staff of experienced contractors and engineers. GPC also has a registered Geologist on staff with 11 years of experience profiling and evaluating wells for future well rehabilitations.
It is still, and has always been, our business practice to fully comply with all applicable State and Federal Reporting requirements regarding our employee's safety, employment reporting, and customer focus. GPC specializes in complete well rehabilitation and pump equipment design and repairs. Although we have several employees that have significant well drilling experience; GPC does not perform any type of well drilling services. We are the only pump service company that disassembles and inspects all customer pumps (both new or used) to verifr proper design and materials of construction prior to pump installation. Our industry leading quality control provides us the ability to correct issues before they are rcalized in the system. We have always strived to be the premium well and pump maintenance service contractor in Southern California and focus 100% of our experience and expertise in this area. For further details on both offices and capabilities, a facility tour can be arranged, upon request.
GPC has been awarded, and maintains, more well and pump maintenance contracts than all our competition combined in the Southem California area. Year after year, Cities and Water Districts alike continue to offer us extensions on these programs due to our industry leading expertise and focus on effrcient pump and well maintenance. We have included forms, documents, and technical memos in this proposal that reflect our commitment to be the industry leader related to well and pumps maintenance and service. Additional maintenance contract references can be provided, upon request. Below is a quick srmrmary of our company info and capabilities for reference :
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Additional I nformation :
1. General Pump Company,Inc. address is as follows below. 159 North Acacia Street
San Dimas, CA91773
2. Contact Personnel
Name: Michael Garcia- Project Manager / Engineer
Phone Number: 909-599-9606 Ext. 140
Email : mgarcia@ genpump.com
Name: Mike Bodart - President / Director of Engineering Phone Number: 909 -599-9606 Ext. 222
Email : mbo dart@genpump. com
Name: Tom Nanchy - Senior Project Manager
Phone Number: 909-599-9606 Ext. 225
Email : tnanchy@genpump. com
Name: Paul Rinehart - Project Manager
Phone Number: 909-599-9606 Ext. 120
Email : prinehart@genpump. com
3 General Pump Company Inc has been in the water well and pump service business since 1937. GPC incorporated in 1952, our Federal Tax I.D 95-3551896. Our business specifically focuses on pump and well maintenance, trouble shooting and designing pump applications. GPC is the industry leader in quality control and well rehabilitation expertise in the Southern Califomia area.
4 Several of our Project Managers also have Engineering Degrees or Professional Geologist Licenses. This type of experience diversity allows our team to assist and support our clients with knowledge and recommendations pertaining to all well and pump maintenance situations.
Included copy of our Licenses. Engr A, C-57,D-21, and C-61 General Pump Company is registered with the DIR (Registration # 1000002769)
7. GPC follows all State of California CallOSHA regulations and maintain our Illness Prevention Program
5 6
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If you have any questions or need additional information, please do not hesitate to contact us.
Thank you for the opportunity to provide a proposal for our services and we look forward to current and future work with the City of Fountain Valley.
GENERAL PUMP COMPANY, INC.
Sincerely,
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Michael Garcia
Proj ect Manager/Engineer
Section 2
Company Background
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OIIAI,IF'ICATI EXPERIENCE. AND IINDE,RSTANI) OF THE PROJECT
CAPABILITIES
General Pump Company, Inc. is a Professional Well Redevelopment and Pump Equipment contractor located in San Dimas and Camarillo, California. The Engineering staff, field support and service crews, and office support staff are 100% dedicated to well evaluation and rehabilitation, and pump equipment evaluation and services.
The technical staff at General Pump Company, Inc. has worked in almost every aspect of the well and pump industries. This diverse experience provided us with unique qualifications to serve our customers and provide them with solution-oriented approaches to get their system back into operation. Our engineers and Hydrogeologist have allworked in the drilling and design segment of the water, and/or oil and gas industries, and many of our shop and support technicians have worked for major pump manufactures.
General Pump Company, Inc. employs only experienced Engineers, Hydrogeologist and Technical Field Personnel that can offer Customers assistance in the following areas:
o Assess Well Yields to Minimize Operating and Maintenance Costs o Determine the Efficiency of Production and ASR Wells and Pumps r Engineered Pump and Well Equipment
o Pump Facility Design and Construction / Booster Facility Design and Construction o Pipeline Design and Construction
. Appropriate Mechanical and Chemical Redevelopment
o Periodic Monitor and Maintenance Programs
r Water Quality and Production Solutions / Well System Optimization o Engineered Pump Suctions
. Pump and Motor Repair / Custom Pump Design and Machining o Electrical, SCADA and Transducer Support
o Casing Repair and Swedging
o Video and Geophysical Logging Support
General Pump Company, Inc., an Engineering Service Company, is dedicated to supporting the ongoing needs of the Water Industry, and committed to providing:
e Solution-oriented engineering using problem-solving techniques by degreed Engineers with diverse well system and groundwater experience, and pump application engineers from major pump manufacturing companies.
o Full-time machine shop, staffed with experienced personnel capable of building and repairing standard and custom pump equipment and specialty products. . Self-contained chemical trailers to include safety support and operational controls. o Trained and certified operators for periodic monitoring and maintenance programs. o In-house training facility and training programs for customers and our own personnel. . Strong project and construction management for any size project. o Instant communications with cellular radio/phones for all staff, engineering, technical, field and shop personnel, resulting in better services at a reduced risk and overall cost. o Modern, safe and reliable equipment with the Onlv Telescoping Wetl Rigs with Spudders in the industry which are required for effective redevelopment of wells in pump houses.
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SAFETY
Safety is paramount when men and equipment are involved. A good safety record is important along with adequate insurance and bonding. General Pump Company, Inc. has the best safety record in Southern California for the water well and pump rehabilitation business. Over the past years, General Pump Company, Inc. has had minimal loss of time for work related injuries
ANNUAL CONTRACTS
Award of an Annual Contract is a great honor and to have an Annual Contract renewed year after year is the greatest complement to a service company. It proves that the contractor has met or exceeded the customers' set goals and expectations. General Pump Company, Inc. has been selected by over 45 cities in Southern Califomia to maintain their well and pumping systems. We have more Annual Contracts with cities than all our competitors combined. Additionally, General Pump Company, Inc. is the primary contractor or sole-source contractor for 15 private utilities and water districts. Most of these are multiyear contracts having been renewed several times over.
MACHINE SHOP CAPABILITIES
General Pump Company, Inc. is the only well and pump Service Company in Southern California that builds 100% of our bowl assemblies. This level of expertise, along with our in-house machining, allows us to supply or repair with a greater level of knowledge that your pump equipment will be reliable and efficient.
Our repair and fabrication facility maintains the most complete line of lathes, welding and associated machining tools.
General Pump Company, Inc. has an expansive repair and fabrication facility. This facility has proven to be invaluable during our 69 years of business, since many pump and motor repairs require a strong interface between machining, welding and electrical support in order to be completed. We have three major groups within our repair and fabrication facility that allow us to serve your needs in a variety of ways:
Fabrication and Machining: Including lathes, milling machines, grinders, balancing machines, flame welding, gas and electric welding, heli-arc, etc. We perform welding on steel, aluminum, brass, cast iron, resurfacing, and custom work.
We repair all types of pumps by all manufacturers in our facility up to approximately 24-inch impeller diameter for single and multi-stage Horizontal Pumps and 30-inch diameter for Vertical Turbine Pumps.
Assembly: In general, the pumps we supply are designed and manufactured by General Pump Company at one of our Engineering Service Centers. Assembly of pumps assures the highest quality product, with the assurance that it is built correctly and will meet the design criteria specified.
o
o Field Services: This service has helped us establish ourselves as well and pump problem solvers since many operational problems can be traced to poor installation practices. Having the proper diagnostic equipment and knowing how to use it distinguishes us as "The Leader in Well and Pump Services".
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MACHINE SHOP CAPABILITIES (Continued)
Precision Alisnment - We've invested in the latest Precision Alignment technology and have established a growing list of customers who use us for these services.
Removal. Installation. Mechanical and Startup - We perform field-testing, removal, installation and machining services to offer a turnkey pump service.
General Pump Company, lnc. can provide you with high quality workmanship to meet your water supply needs. Our highly skilled employees can also perform repairs on many types of well and booster pumps.
Pump Renair
Booster
End Suction
Horizontal Split Case
Vertical Turbine
Right-Angle Drive
Impeller Rebuildine
Balancing, Trimmed
Eyes & Flanges
Machine Shop
Shaft Manufactured:
Sleeves Made:
Threads and Tapping
Mechanical Seals
Re-Machine Seat, High
Pressure, High
High Temperature
Pumps & Motors, Precisron
Straightening, Electrical Motors
Bronze, Mild Steel, Stainless
Steel
Electric Motors
New & Overhauled, Rewound,
Balanced, Custom Bases,
Shaft Repaired Upgrades
EOUIPMENT AND FIELD SERVICE
General Pump Company, Inc. maintains a full service machine shop, clean and safe rigs and cranes are a minimum requirement for reliability, quality workmanship and safety.
General Pump Company, Inc. has several trucks fully loaded with essential equipment to handle many urgent repairs in the field. Our well and pump service crews are always ready and willing to assist your Water Utility with making a repair to keep your well and booster facilities running. Just let us know and we will be on the way, ready to provide you with the highest quality service available.
General Pump Company, Inc. has the newest fleet of rigs and equipment in Southern California.
Maintenance and repairs are made at our San Dimas and Camarillo Facilities to make sure our field operations can safely and efficiently respond to our customer's needs. Below are the benefits to our customers.
o Reliable work - In water emergencies, it is important that this large equipment is ready to respond without breakdowns.
. Safety - Our new equipment is not likely to malfunction resulting in major damage or possible injuries.
o The most up-to-date equipment to assemble the Customers' pumps.
General Pump Company, Inc. has the only telescoping pump rigs in Southern Califomia.
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General Pump Company, Inc. has chemical treatment equipment with fully operational safety equipment that includes eyewash and shower, along with other special redevelopment iools, which allow General Pump company, Inc. to perform the most cost-effective cleaning to your wells. -oOoPage 114
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TEAM ORGANIZATION
Step 1: Calls for service are taken by one of our engineers. This step is important and based on the issue may require further field inspections, testing, evaluation of data (City and GPC), and a meeting with one of our experienced engineers.
Based on our evaluation, we will submit options for the City to consider. Each option requires a discussion of ftis*, BeneJit, ond Cost. As more information and test data becomes available, the course of action may change. Each change requires GPC's engineers to reevaluate and discuss options.
President/Director of Engineering (35 plus years' experience).' General oversight of all GPC projects and project management team, and engineering.
Project Managers / Engineers (30-40 years' experience) (Outside): Meet with customers, prepare solutions and options, and evaluate system problems along with pump and well problems.
Project Managers / Engineers (10-25 years of experience) Qnside): Answer customer's technical questions, perform engineering, support outside project managers / engineers, and work closely with our field foremen, job plans and schedules.
Operation Manager (40 years of experience): General oversight of field and shop operations; includes quality control, technical assistance, and equipment allocations for projects.
Senior Pump Engineer (40 years of experience): Performs detailed engineering evaluations, pump inspections, and submits recommendations to project managers / engineers.
Professional Geologist (14 years of experience): Reviews well rehabilitation processes, down hole testing, and submits recommendations.
Field Technicians, Foremen, Electricians, Certified l(elders, Certified Crane Opercttors, and 40-hour HAZMAT certified (10-30 yeors experience); Play an important role in the job planning, inspections, quality control, and solutions to the issues being discussed.
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General Pump Company acquires only professional and experienced personnel to service our customers.
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OTHER KEY F'ACTS AROIIT GENERAL PUMP COMPANY
Although General Pump Company has the largest list of City Contracts, we also have close relationships with many Cities, Water Districts, and private water companies.
Seminars - General Pump Company is responsible for giving out thousands of Continuing Education Units (CEUs). General Pump Company sponsors many of these classes and is also invited speakers for many water associations. Teaching our customers how to protect their greatest capital assets (water systems) is part of our programs to help Southern California Cities become more cost effective in their water operations.
Byron Jackson (Flowserve Corp) - Byron Jackson submersible pumps have a unique design that requires a high degree of understanding. General Pump Company is one of two companies that are certified to sell and service BJ pumps and motors. This equipment must be purchased by a local dealer. BJ pumps are manufactured by Flowserve Corporation. There are no equals to the construction of these heavy duty pumps and motors. BJ pumps have been used for City water systems in the U.S. for over 100 years. General Pump has been working with these pumps for over 60 years in Southem California. The City of South Pasadena utilizes Byron Jackson pumps.
Safety - Safety is paramount when men and equipment are involved. A good safety record is important along with adequate insurance and bonding. General Pump Company, Inc. has the best safety record in Southern California for the water well and pump rehabilitation business. Over the past seven years, General Pump Company, Inc. has had minimal loss of time for work related injuries.
Response Time - The location of a full service pump facility can play a large role in our ability to respond, but also can substantially decrease or increase the cost ofa project due to the hours spent hauling equipment to and from your sites. In summary, a 2}-mile further commute will typically add about20%o higher cost for all field work.
AirBurst'@ - AirBurst@ Technology is recognized throughout the United States as being one of the most effective development tools that can be used for high capacity wells.
When Frazier Industries looked to expand their process into Southern Califomia, they decided to team up with General Pump Company. General Pump Company performs more than 98oh of all AirBurst@ procedures in Southern California. This process has successfully cleaned the Cities' wells for over ten (10) years.