Sacramento City Council
May 30, 2023

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00575 5/30/2023 Consent Item 17.

Contract: Florin Pump Station Heat Exchangers
File ID: 2023-00575
Location: District 6, Represented by Vice Mayor Guerra
Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee to: 1) ratify City Agreement PRC002149 with TNT Industrial Contractors, Inc. for the emergency replacement of heat exchange systems for the Florin Reservoir Pump Station Pumps for an amount not to exceed $800,000; 2) execute Supplemental Agreement No. 7 to City Agreement 2018-0656 with HydroScience Engineers Inc. to provide construction support services for an amount not to exceed $50,000, bringing the agreement’s total not-to-exceed amount to $298,898; and 3) authorize a budget transfer from the Florin Reservoir Backup Engine (Z14130100, Fund 6005) to the Reservoir Rehab Program (Z14130500, Fund 6005) in the amount of $1,000,000.

Contact: Steven Swain, Project Manager (916) 808-4059; Michelle Carrey (916) 808-1438; Sherill Huun, Engineering & Water Resources Division Manager, (916) 808-1455; Pravani Vandeyar, Director, (916) 808-3765; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Goods and Nonprofessional Services Agreement PRC002149 3-Supplemental Agreement
4-Resolution
Additional Description/Analysis
Issue Detail: In September 2022, Department of Utilities (DOU) staff at the Florin Reservoir Pump Station identified a coolant leak in the heat exchange system for pump number 1. After disassembly of the system, it was confirmed there was a crack in the coolant jacket, causing the leak and necessitated shut down of the pump. The existing heat exchange system, originally installed in 2002, does not conform to NSF-61 standards, and therefore cannot be repaired and reinstalled, according to California regulations regarding drinking water. Therefore, pump number 1 was removed from

File ID: 2023-00575 5/30/2023 Consent Item 17.
service, and DOU staff began design of a replacement heat exchange system. DOU added scope to the existing HydroScience Engineers, Inc. (HydroScience) contract for design work at the Florin Reservoir for assistance with design of these systems.

In November 2022, a leak of the intermediate coolant fluid was identified in the heat exchange system for pump number 2. This leak indicated a failure similar to the failure in the heat exchange system of pump number 1 and would require a similar replacement. Although this failure did not require pump 2 to be removed from service, the pump was placed on a stand-by status to reduce the possibility of worsening the failure. Furthermore, this failure further indicated that a failure in the heat exchange system for the last pump, pump number 3, was likely to occur, and replacement of that unit was warranted.

On January 8, 2023, a failure occurred within the control system of pump number 3. With pump 1 out of service and pump 2 operating on a reduced load, the lack of pump redundancy and criticality of the pump station in the drinking water system warranted issuing an emergency contract to replace the heat exchange units on an expedited timeline.

TNT Industrial Contractors, Inc. (TNT) had recently completed a $1.8M construction project at the Florin Reservoir and Pump Station and due to their familiarity with the facility and the successful Capital Improvement Project, DOU approached TNT Industrial Contractors, Inc. (TNT) to procure and install replacement heat exchange systems for all three pumps. In February 2023, DOU contracted with TNT to complete this work for an amount not to exceed $800,000.

Due to the expedited timeline of design and construction of these systems, it is in the City’s best interest to issue Supplemental Agreement No. 7 with HydroScience for construction support services.

Policy Considerations: This action is consistent with City Code Section 3.56.060 and APIs 4001 and 4101 Procurement of Supplies and Nonprofessional Services related to emergencies. This item describes the emergency, the actions taken, and the emergency contracts that were executed.

Economic Impacts: This project is expected to create 3.20 total jobs (1.84 direct jobs and 1.36 jobs through indirect and induced activities) and create $493,948 in total economic output ($311,3239.20 of direct output and another $182,608.80 of output through indirect and induced activities).

The indicated economic impacts are estimates calculated using a calculation tool developed by the Center for Strategic Economic Research (CSER). CSER utilized the IMPLAN input-output model (2009 coefficients) to quantify the economic impacts of a hypothetical $1 million of spending in various construction categories within the City of Sacramento in an average one-year period. Actual impacts could differ significantly from the estimates and neither the City of Sacramento nor CSER shall be held responsible for consequences resulting from such differences.

File ID: 2023-00575 5/30/2023 Consent Item 17.

Environmental Considerations: The subject projects were reviewed and determined to be categorically exempt from the California Environmental Quality Act (CEQA). The projects include replacing existing heat exchange systems involving negligible expansion of capacity (CEQA Guidelines Section 15302 (c).

Sustainability: The proposed project is consistent with the 2035 General Plan as it improves infrastructure reliability, which will allow for adequate distribution of water within the City distribution system.

Commission/Committee Action: Not applicable.

Rationale for Recommendation: The Florin Reservoir Pump Station is an integral part of the water distribution system, almost as important as the treatment plants themselves. Without pump redundancy, failures in the pumps could result in the inability to adequately pressurize the City’s water distribution system.

City Code Section 3.56.060 and APIs 4001 and 4101 Procurement of Supplies and Nonprofessional Services combine to allow for the City Manager to negotiate and contract for the design, procurement and installation of these critical repairs without advertising for bids when public interest and necessity demand immediate action, repair or replacement to safeguard life, health, or property, to permit the continued conduct of city operations or services, or to mitigate further damage.

An emergency contract with TNT and a supplemental agreement with HydroScience were necessary in this instance to ensure that pumps are returned to normal operating status as quickly as possible.

Financial Considerations: The original not-to-exceed amount of the City Agreement 2018-0656 was $127,408. The net change by previous supplemental agreements in the amount of $121,490 increased the agreement’s not-to-exceed amount to $248,898. The proposed Supplemental Agreement No. 7, in the amount of $50,000, would increase the agreement’s not-to-exceed amount to $298,898.

The total estimated cost for the project is $1,000,000. To provide sufficient funding for this project, staff recommends a budget transfer from the Florin Reservoir Backup Engine (Z14130100, Fund 6005) to the Reservoir Rehab Program (Z14130500, Fund 6005) in the amount of $1,000,000 to complete the project.

There are no General Funds allocated or planned for this project.

Local Business Enterprise (LBE): TNT Industrial Contractors, Inc. and HydroScience Engineers Inc are both LBEs.

File ID: 2023-00575 5/30/2023 Consent Item 17.

Form Approved by City Attorney 9‐1‐2020  Page 1
CONTRACT #: PRC002149
CONTRACT NAME: HEAT EXCHANGE SYSTEM ENGINE MODIFICATION CONTRACT PROJECT #: 443011 6005 14001111
DEPARTMENT: UTILITES
DIVISION:ENGINEERING & WATER RESOURCES
CITY OF SACRAMENTO

GOODS AND NONPROFESSIONAL SERVICES AGREEMENT

THIS CONTRACT is made at Sacramento, California, by and between the CITY OF SACRAMENTO, a charter city and municipal corporation (“CITY”), and

TNT Industrial Contractors, Inc.
3800 Happy Lane, Sacramento, CA 95827
Phone: 916.395.8400 /E‐mail: [email protected]

(“Contractor”), as of the Effective Date, as defined below.

The City and Contractor agree as follows:

1. Effective Date.  This Contract shall be effective beginning  January 1, 2023.

2. Contract  Documents.  This  Contract  includes  each  of  the  following  documents,  which  are attached  or  incorporated  by  this  reference  (referred  to  collectively  as  the  “Contract Documents”):

Invitation to Bid, Request for Qualifications, or Request for Proposals, and any Addenda Exhibit A ‐ Technical Specifications
Exhibit B – Payment
Exhibit C – Insurance
Exhibit D – General Conditions
Purchase Orders

If there is a conflict between the terms and conditions of any document prepared or provided by the Contractor and made a part of this Contract and the other terms or conditions of the Contract, the other terms and conditions of the Contract control.

3. Goods and Services.  Subject to the terms and conditions set forth in this Contract, Contractor shall  provide  to  City  the  goods,  materials,  equipment  or  supplies  (“Goods”)  and  the  non‐ professional services (“Services”) described in Exhibit A (referred to collectively as “Goods and Services”).

Contractor  will  not  be  compensated  for  goods,  materials,  equipment,  supplies,  or  non‐ professional  services  outside  the  scope  of  Exhibit  A  (“Additional  Goods  and  Services”)  unless, before providing Additional Goods and Services: (a) Contractor notifies City and City agrees that the Additional Goods and Services are outside the scope of Exhibit A; (b) Contractor estimates Form Approved by City Attorney 9‐1‐2020  Page 2
the additional compensation required for these Additional Goods and Services; and (c) City, after notice, approves in writing a Supplemental Contract specifying the Additional Goods and Services and the amount of additional compensation to be paid Contractor.

City  will  have  no  obligations  whatsoever  under  this  Contract  or  any  Supplemental  Contract, unless and until this Contract or any Supplemental Contract is approved by the City as required by the Sacramento City Code. As used in this Contract, the term “Goods and Services” includes both Goods and Services and Additional Goods and Services as applicable.

4. Payment.  City  shall  pay  Contractor  at  the  times  and  in  the  manner  set  forth  in  Exhibit  B.

Contractor shall submit all invoices to City in the manner specified in Exhibit B.

5. Facilities and Equipment. Except as set forth below, Contractor shall, at its sole cost and expense, furnish all facilities and equipment required for Contractor to perform this Contract.  City shall furnish to Contractor only the facilities and equipment listed below, if any.

Access to City Facilities as needed to perform the scope of services.

6. Insurance.  Contractor  shall,  at  its  sole  cost  and  expense,  maintain  the  insurance  coverage described in the attached Exhibit C.

7. General  Conditions.  Contractor  shall  comply  with  the  terms  and  conditions  set  forth  in  the attached Exhibit D.

8. Non‐Discrimination in Employee Benefits. This Contract may be subject to Sacramento City Code chapter 3.54, Non‐  Discrimination in Employee Benefits by City Contractors. A summary of the  requirements, entitled "Requirements of the Non‐Discrimination in Employee Benefits Code (Equal Benefits Ordinance),” can be viewed at:

https://www.cityofsacramento.org/Finance/Procurement/Contract‐Ordinances.

Contractor acknowledges and represents that Contractor has read and understands the requirements and shall fully comply with all applicable requirements of Sacramento City  Code chapter 3.54. If requested by City, Contractor shall promptly provide any  documents and information required by City to verify Contractor's compliance.

Contractor's violation of Sacramento City Code chapter 3.54 constitutes a material  breach of this Contract, for which the City may terminate the Contract and pursue all  available legal and equitable remedies.

9. Living Wage.  This Contract may be subject to Sacramento City Code chapter 3.58, Living Wage.

A  summary of the requirements, entitled "Living Wage Requirements", can be viewed at:
https://www.cityofsacramento.org/Finance/Procurement/Contract‐Ordinances.

The Living Wage Ordinance is applicable to certain contracts with the City in an amount  of $250,000 or more (either initial value or total value after amendment) or if the total  value of all Contractor's contracts with the City is $250,000 or more over a 12‐month  period.

Form Approved by City Attorney 9‐1‐2020  Page 3
Contractor acknowledges and represents that Contractor has read and understands the requirements and shall fully comply with all applicable requirements of Sacramento City  Code chapter 3.58. If requested by City, Contractor shall promptly provide any  documents and information required by City to verify Contractor's compliance.

Contractor shall require applicable subcontractors to fully comply with all applicable requirements of Sacramento City Code chapter 3.58 and include these requirements in  all subcontracts covered by Sacramento City Code chapter 3.58.

Contractor's violation of Sacramento City Code chapter 3.58 constitutes a material  breach of this Contract, for which the City may terminate the Contract and pursue all  available legal and equitable remedies.

In addition, for Services that constitute "Public Works" under California Labor Code Section 1720 et seq., if both prevailing wage and living wage requirements apply, Contractor shall pay the higher of the two rates.

10. Considering  Criminal  Conviction  Information  in  the  Employment  Application  Process.  This Contract may be subject to the requirements of Sacramento City Code chapter 3.62, Procedures for  Considering  Criminal  Conviction  Information  in  the  Employment  Application  Process.  A summary of the requirements, entitled “Ban‐The‐Box Requirements,” can be viewed at:

https://www.cityofsacramento.org/Finance/Procurement/Contract‐Ordinances.

The Ban‐The‐Box Requirements are applicable to certain contracts with the City in an  amount of $250,000 or more (either initial value or total value after amendment) or if the  total value of all Contractor's contracts with the City is $250,000 or more over a 12‐month period.

Contractor acknowledges and represents that Contractor has read and understands  these requirements and shall fully comply with all applicable requirements of  Sacramento City Code chapter 3.62. If requested by City, Contractor shall promptly  provide any documents and information required by City to verify Contractor's  compliance. Contractor shall require applicable subcontractors to fully comply with all  applicable requirements of Sacramento City Code chapter 3.62 and include these  requirements in all subcontracts covered by Sacramento City Code chapter 3.62.

Contractor's violation of Sacramento City Code chapter 3.62 constitutes a material  breach of this Contract,  for  which  the  City  may  terminate  the  Contract  and  pursue  all  available  legal  and equitable remedies.

11. Local  Business  Enterprise  Program.  The  Local  Business  Enterprise  Program  Participation Requirements ("LBE Participation  Requirements") are applicable to this Contract. A summary of the requirements, entitled  "LBE Participation Requirements," can be viewed at:

https://www.cityofsacramento.org/Finance/Procurement/Contract‐Ordinances.

Form Approved by City Attorney 9‐1‐2020  Page 4
Contractor acknowledges and represents that Contractor has read and understands  these requirements and shall fully comply with all applicable requirements of  Sacramento City Code chapter 3.60. If requested by City, Contractor shall promptly  provide any documents and information required by City to verify Contractor's  compliance. Contractor shall require applicable subcontractors to fully comply with all  applicable requirements of Sacramento City Code chapter 3.60 and include these  requirements in all subcontracts covered by Sacramento City Code chapter 3.60.

Contractor's violation of Sacramento City Code chapter 3.60 constitutes a material  breach of this Contract, for which the City may terminate the Contract and pursue all  available legal and equitable remedies.

12. Authority.  The person signing this Contract for Contractor represents and warrants that he or she has read, understands, and agrees to all the Contract terms and is fully authorized to sign this Contract  on  behalf  of  the  Contractor  and  to  bind  the  Contractor  to  the  performance  of  the Contract’s obligations.

[Signature Pages Follow Exhibits]
Form Approved by City Attorney 9‐1‐2020  Exhibit A ‐ Page 1 EXHIBIT A
TECHNICAL SPECIFICATIONS

1. Representatives.

The CITY Representative for this Agreement is:

Steve Swain, Associate Civil Engineer
City of Sacramento – Dept. of Utilities
1395 35th Ave., Sacramento, CA 95822
Phone: 916.808.4059 /E‐mail: [email protected]

The CONTRACTOR Representative for this Agreement is:

Bob McCraley
TNT Industrial Contractors, Inc.
3800 Happy Lane, Sacramento, CA 95827
Phone: 916.395.8400 /E‐mail: [email protected]

Unless  otherwise  provided  in  this  Contract,  all  Contractor  questions  and  correspondence pertaining to this Contract must be addressed to the City Representative. All City questions and correspondence must be addressed to the Contractor Representative.

2. Scope of Services. Contractor shall provide Goods and Services to City as set forth in Attachment 1 to this Exhibit A.

3. Quantities. The quantities stated in Attachment 1 to this Exhibit A or Exhibit B are only estimates of the City's requirements. Contractor shall furnish  Goods and Services at the prices quoted, in accordance with the City's available funds  and actual needs as they occur throughout the term of this Contract.

The City is not required to purchase all of the Goods and Services listed, or to expend  all available funding reflected in Exhibits A or B.

4. Time of Performance.  The Goods and Services described in this Contract shall be provided for the period beginning January 1, 2023 through and including December 31, 2023. Contractor shall provide the Goods and Services in accordance with any schedule in Attachment 1 to this Exhibit A.

5. Delivery and Inspection.

A. Delivery. Unless otherwise stated by the City in writing, delivery of Goods shall be  made to  the  City  address  set  forth  in  Exhibit  A.  All  shipments  are  Free  on  Board  (F.O.B.) destination with freight prepaid unless otherwise stated.

Form Approved by City Attorney 9‐1‐2020  Exhibit A ‐ Page 2 Contractor  assumes  full  responsibility  for  all  transportation  scheduling  and  costs, including costs for containers, packing, handling, and insurance. The City reserves the right to request and receive a copy of the freight bill of lading on all purchases shipped F.O.B. prepaid and added.

Time is of the essence in the delivery. If delivery cannot be made as specified in Exhibit A or as otherwise stated by the City, Contractor shall  notify the City immediately to request instructions on how to proceed and shall not make  delivery before receipt of instructions.

Periods of performance may be extended if, in the  sole judgment of the City, the cause of delay justifies an extension.

B. Inspections:  Goods will be inspected at the destination before acceptance by an authorized representative of the City for workmanship, appearance, proper functioning of all equipment and systems, and conformance to all other requirements of this Contract. The Goods shall be delivered to City free of any liens or encumbrances.

Notwithstanding the requirements for any City inspection and testing at the destination and except where specialized inspections or testing are specified for performance solely by the City, Contractor shall perform or have performed the inspections or tests required to substantiate that all Goods provided under the Contract conform to the drawings, specifications, and other Contract requirements, including, if applicable, the technical requirements for the manufacturer's part number(s) specified.

C. Deficiencies:  If deficiencies in the Goods are discovered, Contractor shall correct  and redeliver the Goods for re‐inspection and acceptance. The period for payment  and/or commencement of discount period (if applicable) does not begin until corrective  action is complete. The cost of storing rejected Goods and the cost for shipping rejected  Goods back to the Contractor or point of origin shall be paid by Contractor.

D. Inspection of Facilities:  If requested by the City, Contractor shall provide the City  with an inspection tour of Contractor's facilities where any Goods will be designed, manufactured, or assembled by Contractor.

6. Title/Risk of Loss. Title, ownership, and risk of loss or damage of the Goods remains with the Contractor  until the Goods are delivered to, inspected, and accepted by the City, except when the  loss or damage is due to the sole negligence of the City.

ATTACHMENT 1 TO EXHIBIT A
SCOPE OF SERVICES

Scope of work shall include any engine modifications needed to replace the existing heat exchange systems on all engines. Services shall include (but are not limited to):
 Removal of existing heat exchange systems
 Procurement and installation of new heat exchange units  Piping modifications
 Power and control wiring installation
Form Approved by City Attorney 9‐1‐2020  Exhibit B ‐ Page 1 EXHIBIT B

PAYMENT

1. Contractor’s Compensation.  The total of all fees paid to the Contractor for the provision of Goods and Services as set forth in Exhibit A, including any authorized reimbursable expenses, shall not exceed the total sum of $ 800,000.00. The payments specified in this Exhibit B shall be the only payments made to Contractor unless the City approves a Supplemental Contract.

2. Pricing. Contractor shall be paid as set forth in Exhibit A or Attachment 1 to this Exhibit B and any applicable special provisions included in the request for bids or proposals. If there is a conflict between Exhibit A or Exhibit B and the Special Provisions, Exhibit A or Exhibit B controls.

3. Contractor’s Reimbursable Expenses.  “Reimbursable Expenses” are limited to actual expenditures of Contractor for expenses that are necessary for the proper satisfaction of the Contract and are only payable if specifically authorized in advance in writing by the City.

4. Miscellaneous Charges. No additional charges will be allowed unless specified in the Contract, including charges for transportation, fuel, containers, packing, or disposal.

5. Price Adjustments for Goods.  Unless otherwise stated, prices are maximum for the term of the Contract. Price  adjustments, if allowed under this Contract, must be requested in writing and  accompanied by the required information to substantiate the request for price adjustment, as set forth in the Contract.  Any allowable request for price adjustment  must be delivered to the City at least 30 days before the adjusted prices become  effective. No price adjustment allowable under this Contract will be granted  retroactively. The City must also be given the benefit of any decline in prices.  If any  price increase is granted by the City, the increase shall not be greater than 3% from the  prior year.

6. Purchase Orders.  Unless otherwise stated, a purchase order will be issued to the Contractor on behalf  of  the  City.  Purchase  orders  will  cite  the  quantity of  Goods  or Services  requested,  the purchase amount, and time of performance. If the time of performance of this Contract  extends beyond the close of the City's fiscal year, another purchase order may be  issued. No purchase order supersedes any provision of this Contract. Contractor shall  not deliver Goods or provide Services until Contractor receives a purchase order or  other written notification by the City.

7. Payments to Contractor. Contractor is responsible for supplying all documentation necessary to verify invoices to the City’s satisfaction.

A. Payment terms are NET 30 days, unless the Contractor offers a prompt payment discount that was accepted by the City or as otherwise stated in this Contract. Any prompt payment discounts will be computed from the date of acceptance by the City, or from the date an invoice is received, whichever occurs later.

B. Invoices must be submitted to either of the addresses specified below. (1) Email. Submit email invoices and any attachments to:
[email protected]
Form Approved by City Attorney 9‐1‐2020  Exhibit B ‐ Page 2 (2) Postal Mail. If emailing is not an option, mail to:

A/P Processing Center
City of Sacramento
915 I Street, Floor 4
Sacramento, CA 95814‐2608

C. All invoices submitted by CONTRACTOR must contain the following information:

(1) Job/Project Name
(2) CITY’s current Purchase Order Number
(3) Contractor’s Invoice Number
(4) Date of Invoice Issuance
(5) Work Order Number (if applicable)
(6) CITY representative identified on the Purchase Order (7) Contractor’s remit address
(8) Itemized description of items billed under Invoice
(9) Itemized description of all authorized Reimbursable Expenses (10) Itemized description of all applicable taxes (sales, use, excise, etc.) (11) Amount of Invoice (itemize all authorized Reimbursable Expenses) (12) Total Billed to Date under Contract (if applicable)

D. Items must be separated into Goods, Services, and Reimbursable Expenses.  All applicable sales,  use,  excise,  or  similar  taxes,  including  federal  excise  tax,  must  be  itemized separately on the invoice. Invoices that do not conform to the format outlined above will be returned to Contractor for correction.  City is not responsible for delays in payment to Contractor  resulting  from  Contractor’s  failure  to  comply  with  the  invoice  format described above.

E. For Goods only, a bill of lading number and weight of shipment will be shown for shipments on the Government Bill of Lading.

F. Unless otherwise specified in this Contract, partial payments will not be made by the City and  payment  will  not  be  due  until  the  completion  of  the  Goods  order.  No  payment precludes the City’s right to inspect. Requests for payment status should be addressed to the City Representative for this Contract.

8. Additional Goods and Services.  Additional Goods and Services shall be provided only when a Supplemental Contract authorizing the Additional Goods and Services is approved in writing by the City in accordance with the City’s contract amendment procedures. The City reserves the right  to  perform  any  Additional  Services  with  its  own  staff  or  to  retain  other  contractors  to perform the Additional Services.

9. Billing Disputes. The burden of proof shall be on the Contractor to establish the accuracy of its invoices. Upon presentation and verification of the information provided by Contractor, the City will review all records and make a final determination and present its finding to Contractor.

10. Accounting Records of Contractor.  During performance of this Contract and for a period of three Form Approved by City Attorney 9‐1‐2020  Exhibit B ‐ Page 3 years  after  completion  of  performance,  Contractor  shall  maintain  all  accounting  and  financial records  related  to  this  Contract,  in  accordance  with  generally  accepted  accounting  practices, including  records  of  Contractor’s  costs  for  performance  under  this  Contract  and  records  of Contractor’s  Reimbursable  Expenses.  Contractor  shall  keep  and  make  records  available  for inspection and audit by representatives of the City upon reasonable written notice.

11. Sales Tax Requirements. The City is not exempt from paying sales tax. Sales tax must be shown on the invoice as a separate line item.

12. Use Tax Requirements. On out‐of‐state purchases, Contractor shall list its Use Tax Permit Number (if  applicable) on the invoice, which authorizes Contractor to charge and collect California  Sales Tax. The Purchase Order will include sales tax, if applicable to the purchase, regardless of whether an out‐of‐state Contractor collects California State sales tax or  not.

The City shall pay Use Tax directly to the California Department of Tax and Fee Administration ("CDTFA") if the out‐of‐state Contractor is not required to collect  California Sales Tax. During the performance of this Contract, Contractor, for itself, its  assignees and successors in interest, agrees as follows:

A. Use Tax Direct Payment Permit:  For all leases and purchases of tangible personal property used to perform the Contract and shipped from outside California, Contractor and any subcontractor(s) leasing or purchasing such tangible personal property shall obtain a Use Tax Direct Payment Permit from the CDTFA in accordance with the applicable CDTFA criteria and requirements.

B. Sellers Permit:  For any construction contract and any construction subcontract in  the amount of $5,000,000 or more, Contractor and the subcontractor(s) shall obtain  sellers permits from the CDTFA and shall register the jobsite as the place of business  for the purpose of allocating local sales and use tax to the City. Contractor and its subcontractors shall remit the self‐accrued use tax to the CDTFA and shall provide a copy of each remittance to the City.

C. The above provisions apply in all instances unless prohibited by the funding source  for the Contract.

13. Excise Tax Requirements. The City of Sacramento is exempt from the payment of Federal Excise Tax. An  exemption certificate will be submitted to Contractor upon request. If Federal Excise Tax is applicable to the transaction, it must be so stated and excluded from the price.

14. Tax Payments.  Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor’s  compensation  hereunder,  including  estimated  taxes,  and  shall  provide  CITY  with proof of the payment upon request.  Contractor hereby agrees to indemnify CITY for any claims, losses,  costs,  fees,  liabilities,  damages  or  injuries  suffered  by  CITY  arising  out  of  Contractor’s breach of this section.

15. Public Works Requirements.  [To be completed by the City Representative:]

The services provided under this Contract include [check one if applicable]:

Form Approved by City Attorney 9‐1‐2020  Exhibit B ‐ Page 4 Construction work in an amount exceeding $25,000;

Land Surveying, material testing, or inspection services provided for a City construction project during the design, pre‐construction, construction, or post‐construction phases of the project; or

XX   Alteration,  demolition,  repair,  or  maintenance  work  in  an  amount exceeding $15,000.

If any of the lines is checked above, this Contract includes “Public Work” under the California Labor Code and is subject to the following requirements:

A. Payment of Prevailing Wages: Contractor and any subcontractor(s) performing any Public Work  shall  comply  with  the  provisions  of  Sacramento  City  Code  section  3.60.180  and applicable  provisions  of the  California  Labor  Code,  which  require,  among  other  things, that Contractor and all subcontractors pay not less than the prevailing rate of wages, as determined by the Director of the California Department of Industrial Relations (“DIR”) in accordance with California Labor Code section 1773.  Contractor and every subcontractor shall maintain payroll records and submit certified payrolls and other labor compliance documentation  electronically  when  and  as  required  by  CITY.  In  addition,  Labor  Code Section  1771.4  requires  the  Contractor  and  any  subcontractor  performing  any  Public Work to furnish electronic payroll records directly to the Labor Commissioner. Contractor shall include these requirements in every subcontract.

This  Agreement  is  subject  to  compliance  monitoring  and  enforcement  by  the  DIR,  as specified in California Labor Code section 1771.4. The Contractor and any subcontractor will be subject to withholding and penalties for violation of prevailing wage requirements in accordance with applicable law, including Labor Code Sections 1726, 1741, 1771.5, and 1775, and City Code Section 3.60.180. Questions regarding the City’s Labor Compliance Program should be directed to the City Representative.

B. DIR  Registration:  California  Labor  Code  Section  1725.5  requires  the  Contractor  and  all subcontractors performing Public Works services to be currently registered with the DIR, as specified in California Labor Code Section 1725.5. California Labor Code Section 1771.1 provides that a contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal (subject to the requirements of Section 4104 of the California Public Contract Code), or engage in the performance of any contract for Public Work, unless currently registered and qualified to perform Public Work in accordance with California Labor Code Section 1725.5.

Further  information  can  be  found  on  DIR’s  website  at  http://www.dir.ca.gov/Public‐ Works/Contractors.html.  The  above  summary  is  provided  solely  for  informational purposes and does not in any way affect the Contractor’s and subcontractors’ obligation to comply in all respects with all other applicable laws and regulations. The Contractor shall disseminate these provisions to all subcontractors.

Form Approved by City Attorney 9‐1‐2020  Exhibit B ‐ Page 5 Before the performance of work by Contractor or any subcontractor(s) under this Contract, Contractor shall furnish Contractor’s and any subcontractors’ current DIR registration number(s). The Contractor’s current DIR registration number and the current DIR registration number of all subcontractors will be listed on the Subcontractor and LBE Participation Verification Form, incorporated herein.

C. Workers’ Compensation Certification. In accordance with California Labor Code Section 1861, by signing this Contract, Contractor acknowledges and represents that Contractor is aware of the provisions of section 3700 of the California Labor Code which requires every employer to be insured against liability for workers' compensation or to undertake self‐insurance in accordance with the provisions of that code, and that Contractor will comply with the provisions of the Labor Code before commencing performance  under this Contract.

D. Apprentices. If this Contract is for the performance of any Public Work, and the amount of the Contract is $30,000 or more, the Contractor and any subcontractors performing any Public Work under this Contract must comply with and be subject to enforcement under, the provisions of Sacramento City Code Section 3.60.190, Section 1777.5 et seq. of the California Labor Code, and implementing regulations set forth in Title 8 of the California Code of Regulations, governing the employment of apprentices. The Contractor and any subcontractors performing Public Work will be subject to penalties for apprenticeship violations in accordance with Labor Code Section 1777.7.

E. Working Hours. If this Contract is for the performance of any Public Work, Contractor and any subcontractors performing any Public Work under this Contract must comply with and be subject to enforcement under, the provisions of Sacramento City Code Section 3.60.180 and California Labor Code Section 1810 et seq., governing the working hours of employees performing Public Work.

F. Failure to Comply with Labor Compliance. If all applicable labor compliance requirements are not met, the City will have the right to withhold or reject a payment request and/or invoice, in whole or in part, without in any way relieving Contractor or its subcontractors of any obligations under this Contract.

G. Subcontractors.  The  Contractor  shall  include  these  provisions  A  through  F  in  every subcontract  or  sub‐agreement  for  any  subcontractors  performing  work  under  this Contract.
1 ATTACHMENT 1 TO EXHIBIT B

Mr. Steve Swain
Department of Utilities
Engineering Services Division
1395 35th Avenue
Sacramento, CA 95822-2911
[email protected], www.tntindustrial.com
3800 Happy Lane Sacramento, CA 95827
916-395-8400, fax 916-395-8429

January 13, 2023

RE: Time and Material Rates – Northern California

TNT Industrial Contractors Inc., is pleased to offer the following time and material rates for skilled labor craftsmen for the City of Sacramento, California
These rates are effective through June 30, 2023

PIPEFITTERS
Local #447 (Sacramento) STANDARD OVERTIME DOUBLETIME
Pipefitter Journeyman $ 99.37 $ 133.91 $ 168.45
Pipefitter Welder/Foreman $ 110.42 $ 150.49 $ 190.56
Pf-General Foreman $ 114.56 $ 156.71 $ 198.85

CARPENTERS
Area 2 & 3 (Sacramento) STANDARD OVERTIME DOUBLETIME
Journeyman $ 98.03 $ 129.25 $ 160.47
Foreman $ 104.28 $ 138.63 $ 172.98
General Foreman $ 118.02 $ 159.24 $ 200.46

LABORERS
Laborers (Sacramento) Rate B STANDARD OVERTIME DOU BLETIME Construction Specialist $ 71.17 $ 91.85 $ 112.53
Foreman $ 84.29 $ 111.54 $ 138.79

Project Manager $ 120.00

Working Hours: - Straight time pay for the first 8 hours in a regular working shift, and time and one half pay up to 10 hours.

After 10 hours they shall receive double time pay. On Saturdays, Pipefitters receive time and one half for the first 10 hours of work, and double time after 10 hours. On Sundays and holidays Pipefitters will receive double-time pay.

Show up time: – Workers whom show up for work and no work is prov ided shall receive the following show up time pay:

Pipefitters – 4 hours, Laborers – 2 hours. This is language that is in our collective bargaining agreements. We will organize and manage our projects to make sure our craftsmen are properly utilized to prevent all non-productive expenditures.

2 Shop Fabrication: - Any shop fabrication that takes place will have a $175 fee per day.

Labor: Will be billed at cost plus 20% markup.

Equipment: - All equipment will be charged at rates plus 18% markup Materials: - Will be billed at cost plus 18% markup.

Subcontractors- Will be billed at cost plus 15% markup.

Bookkeeping services will be billed at $85.00 per hour, not to exceed forty hours per work week.

ASME Code Services Rates can be provided if requested.

These rates are subject to change due to insurance or oth er unforeseen costs. You will be notified in advance of any possible changes.

If you have any questions regarding the above, please do not hesitate to call. Thank you for the opportunity to offer these rates.

We look forward to working with you in the near future.

Sincerely,

Bob McCraley
TNT Industrial Contractors, Inc.

A California Corporation.

Form Approved by City Attorney 9‐1‐2020  Exhibit C ‐ Page 1 EXHIBIT C

INSURANCE

1. Insurance Requirements. During the entire term of this Contract, Contractor shall maintain the insurance coverage  described in the Insurance Terms below. Full compensation for all premiums that Contractor is required to pay for the insurance  coverage described herein shall be included in the compensation specified under this  Contract. No additional compensation will be provided for Contractor's insurance  premiums. Any available insurance proceeds in excess of the specified minimum limits  and coverages shall be available to the City.

Contractor's liability to the City is not in any way limited to or affected by the amount of insurance coverage required or carried by the Contractor in connection with this  Contract.

2. General Liability Minimum Scope and Limits of Insurance Coverage. Commercial General Liability Insurance is required providing coverage at least as broad  as ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of  one or more persons, property damage, and personal injury, arising out of activities  performed by or on behalf of the Contractor and subcontractors, products and  completed operations of Contractor and subcontractors, and premises owned, leased,  or used by Contractor and subcontractors, with limits of not less than one million dollars  ($1,000,000) per occurrence. The policy shall provide contractual liability and products  and completed operations coverage for the term of the policy.

The City, its officials, employees and volunteers shall be covered by policy terms or endorsement as additional insureds as respects general liability arising out of: activities performed by or on behalf of Contractor and subcontractors; products and completed operations of Contractor and subcontractors; and premises owned, leased, or used by Contractor and subcontractors.

3. Automobile Liability Minimum Scope and Limits of Insurance Coverage. (Check the applicable provision.)

_X_  Automobile Liability Insurance is required providing coverage at least as broad as ISO Form CA 00 01 for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than one million dollars ($1,000,000) per occurrence. The policy shall provide coverage for owned, non‐owned and/or hired autos as appropriate to the operations of the Contractor.

The City, its officials, employees and volunteers shall be covered by policy terms or endorsement as additional insureds as respects auto liability.

No  automobile liability  insurance is  required,  and  by  signing this  Contract,  Contractor certifies as follows:

“Contractor certifies that a motor vehicle will not be used in the performance of any work or services under this agreement. If, however, Contractor does transport items under this Contract, or this Contract is amended to require any employees of Contractor to use a Form Approved by City Attorney 9‐1‐2020  Exhibit C ‐ Page 2 vehicle  to  perform  services  under  the  Contract,  Contractor  understands  that  it  must maintain and provide evidence of Automobile Liability Insurance providing coverage at least as broad as ISO Form CA 00 01 for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than one million dollars ($1,000,000) per occurrence. The policy shall provide coverage for owned, non‐ owned and/or hired autos as appropriate to the operations of the Contractor.”

4. Excess  Insurance.  The  minimum  limits  of  insurance  required  above  may  be  satisfied  by  a combination of  primary and umbrella or excess insurance coverage, provided that any umbrella or  excess insurance contains, or is endorsed to contain, a provision that it will apply on a  primary basis  for  the  benefit  of  the  City,  and  any  insurance  or  self‐insurance  maintained  by  City,  its officials, employees, or volunteers will be in excess of Contractor's umbrella  or excess coverage and will not contribute to it.

5. Workers’ Compensation Minimum Scope and Limits of Insurance Coverage. (Check the applicable provision.)

_X_   Workers’ Compensation Insurance is required with statutory limits and Employers' Liability Insurance with limits of not less than one million dollars ($1,000,000). The Workers' Compensation policy shall include a waiver of subrogation in favor of the City.

No work or services will be performed on or at CITY facilities or CITY Property, therefore a Workers’ Compensation waiver of subrogation in favor of the CITY is not required.

No Workers’ Compensation insurance is required, and by signing this Contract, Contractor certifies as follows:

“Contractor  certifies  that  its  business  has  no  employees,  and  that  it  does  not  employ anyone,  and  is  therefore  exempt  from  the  legal  requirements  to  provide  Workers' Compensation insurance. If, however, Contractor hires any employee during the term of this Contract, Contractor understands that Workers’ Compensation with statutory limits and  Employer’s  Liability  Insurance  with  a  limit  of  not  less  than  one  million  dollars ($1,000,000)  is  required.  The  Workers’  Compensation  policy  will  include  a  waiver  of subrogation in favor of the City.”

6. Other Insurance Provisions. The policies must contain, or be endorsed to contain, the following provisions:

A. Contractor's insurance coverage, including excess insurance, shall be  primary insurance as respects the City, its officials, employees and  volunteers. Any insurance or self‐insurance maintained by the City, its  officials, employees or volunteers will be in excess of Contractor's  insurance and will not contribute with it.

B. Any failure to comply with reporting provisions of the policies will not affect  coverage provided to the City, its officials, employees or volunteers.

C. Coverage shall state that Contractor's insurance applies separately to  each insured Form Approved by City Attorney 9‐1‐2020  Exhibit C ‐ Page 3 against whom claim is made or suit is brought, except with  respect to the limits of the insurer's liability.

D. Contractor shall provide the City with 30 days written notice of cancellation or material change in the policy language or terms.

7. Acceptability of Insurance. Insurance must be placed with insurers with a Bests' rating of not less than A:VI. Self‐insured retentions, policy terms or other variations that do not comply with the  requirements of this Exhibit C must be declared to and approved by the City in  writing before execution of this Contract.

8. Verification of Coverage.

A. Contractor shall furnish City with certificates and required endorsements evidencing  the insurance required. Certificates of insurance must be signed by an authorized representative of the insurance carrier. Copies of policies shall be delivered to the City Representative on demand.

B. Contractor shall send all insurance certificates and endorsements, including policy renewals, during the term of this Contract directly to:

City of Sacramento
c/o Exigis LLC
PO Box 947
Murrieta, CA 92564

C. Certificate Holder must be listed as:

City of Sacramento
c/o Exigis LLC
PO Box 947
Murrieta, CA 92564

D. The City may withdraw its offer of Contract or cancel this Contract if the certificates  of insurance and endorsements required have not been provided before execution of  this Contract. The City may withhold payments to Contractor and/or cancel the Contract  if the insurance is canceled or Contractor otherwise ceases to be insured as required  herein.

9. Subcontractor  Insurance  Coverage.  Contractor  shall  require  and  verify  that  all  subcontractors maintain  insurance coverage  that  meets  the  minimum  scope  and  limits  of  insurance  coverage specified in this Exhibit C.

Form Approved by City Attorney 9‐1‐2020  Exhibit D ‐ Page 1 EXHIBIT D
GENERAL CONDITIONS

1. Independent Contractor.

A. It  is  understood  and  agreed  that  Contractor  (including  Contractor’s  employees)  is  an independent contractor and that no relationship of employer‐employee exists between the  parties  hereto  for  any  purpose  whatsoever.  Neither  Contractor  nor  Contractor’s assigned personnel will be entitled to any benefits payable to CITY employees.  CITY is not required  to  make  any  deductions  or  withholdings  from  the  compensation  payable  to Contractor under the provisions of this Contract, and Contractor will be issued a Form 1099 for its services hereunder.  As an independent contractor, Contractor hereby agrees to indemnify and hold CITY harmless from any and all claims that may be made against CITY based upon any contention by any of Contractor’s employees or by any third party, including  any  state  or  federal  agency,  that  an  employer‐employee  relationship  or  a substitute therefor exists for any purpose whatsoever by reason of this Contract or by reason of the nature and/or performance under this Contract.

B. It is further understood and agreed by the parties that Contractor, in the performance of its obligations, is subject to the City’s control and direction  as to the designation of tasks to be performed and the results to be accomplished under this Contract, but not as to the means, methods, or sequence used by Contractor for accomplishing the results.  To the extent  that  Contractor  obtains  permission  to,  and  does,  use  CITY  facilities,  space, equipment or support services in the performance of this Contract, this use will be at the Contractor’s  sole  discretion  based  on  the  Contractor’s  determination  that  the  use  will promote Contractor’s efficiency and effectiveness.  Except as may be specifically provided elsewhere in this Contract, the CITY does not require that Contractor use CITY facilities, equipment  or  support  services  or  work  in  CITY  locations  in  the  performance  of  this Contract. As used in this Contract, "sole discretion" or "sole  judgment" means that the party authorized to exercise its discretion or judgment may do  so based on an unfettered assessment of its own interests, without considering how its  decision affects the other party, and unconstrained by the implied covenant of good faith  and fair dealing.

C. If, in the performance of this Contract, any third persons are employed by Contractor, such persons will be entirely and exclusively under the direction, supervision, and control of Contractor.  Except as otherwise provided in this Contract, all terms of employment, including  hours,  wages,  working  conditions,  discipline,  hiring,  and  discharging,  or  any other terms of employment or requirements of law, shall be determined by Contractor.

It  is  further  understood  and  agreed  that  Contractor  will  issue  W‐2  or  1099  Forms  for income  and  employment  tax  purposes  for  all  Contractor’s  assigned  personnel  and subcontractors.

D. The provisions of this section will survive any expiration or termination of this Contract.

Nothing in this Contract creates an exclusive relationship between CITY and Contractor.

Contractor  may  represent,  perform  services  for,  or  be  employed  by  any  additional persons or companies so long as Contractor does not violate the provisions of Section 5, below.

Form Approved by City Attorney 9‐1‐2020  Exhibit D ‐ Page 2

2. Licenses;  Permits,  Etc.  Contractor  represents  and  warrants  that  Contractor  has,  and  shall maintain at all times during the term of this Contract at its sole cost and expense, all licenses, permits, qualifications, and approvals of any nature that are legally required for Contractor to practice its profession or fulfill the terms of this Contract, including a City Business Operations Tax Certificate and any required certification issued by the California Secretary of State.

3. Time.  Time is off the essence in the performance of this Contract. Contractor shall devote the necessary time and effort to its performance under this Contract. Neither party will be considered in default of this Contract, to the extent that party’s performance is prevented or delayed by any cause, present or future, that is beyond the reasonable control of that party.

4. Contractor  Not  Agent.  Except  as  City  may  specify  in  writing,  Contractor  and  Contractor’s personnel  have  no  authority,  express  or  implied,  to  act  on  behalf  of  City  in  any  capacity whatsoever as an agent.  Contractor and Contractor’s personnel shall have no authority, express or implied, to bind City to any obligations whatsoever.

5. Conflicts of Interest.  Contractor covenants that neither it, nor any officer or principal of its firm, has or will acquire any interest, directly or indirectly, that would conflict in any manner with the City’s interests or that would in any way hinder Contractor’s performance under this Contract.

Contractor further covenants that in the performance of this Contract, no person having any such interest will be employed by it as an officer, employee, agent or subcontractor, without the City’s written consent.

Contractor agrees to avoid conflicts of interest or the appearance of any conflicts of interest with the City’s interests during the performance of this Contract.  If Contractor is or employs a former officer or employee of the City, Contractor and any former City officer or employee shall comply with the provisions of Sacramento City Code Section 2.16.090 pertaining to appearances before the City Council or any City department, board, commission, or committee.

6. Hazardous Substances. "Hazardous Substances" means any substance, material, waste, or other pollutant or  contaminant that is or becomes designated, classified, or regulated as hazardous or  toxic under any law, regulation, rule, order, decree, or other governmental requirement  now in effect or later enacted. If Contractor is shipping Hazardous Substances, Contractor must supply a Safety Data Sheet ("SDS") with the first shipment of  Hazardous Substances to each City location receiving the Hazardous Substances. If the content of an SDS is revised, Contractor must provide a revised SDS to each City  location receiving Hazardous Substances.

7. Confidentiality of City Information.  During performance of this Contract, Contractor may gain access to and use City information regarding inventions, machinery, products, prices, apparatus, costs,  discounts,  future  plans,  business  affairs,  governmental  affairs,  processes,  trade  secrets, technical matters, systems, facilities, customer lists, product design, copyright, data, and other vital  information  (hereafter  collectively  referred  to  as  “City  Information”)  that  are  valuable, special and unique assets of the City.

Contractor agrees to protect all City Information and treat it as strictly confidential, and further agrees that  Contractor  shall  not  at  any  time,  either  directly  or  indirectly,  divulge,  disclose  or Form Approved by City Attorney 9‐1‐2020  Exhibit D ‐ Page 3 communicate  in  any  manner  any  City  Information  to  any  third  party  without  the  City’s  prior written consent.

In addition, Contractor must comply with all City policies governing the use of the CITY network and  technology  systems,  as  set  forth  in  applicable  provisions  of  the  City  of  Sacramento Administrative  Policy  Instructions  #  30.  A  violation  by  Contractor  of  this  section  is  a  material violation of this Contract and shall justify legal and equitable relief.

8. Contractor Information.

A. City shall have full ownership and control, including ownership of any copyrights, of all information prepared, produced, or provided by Contractor under this Contract.  In this Contract,  the  term  “information”  means  and  includes:  any  and  all  work  product, submittals, reports, plans, specifications, and other deliverables consisting of documents, writings,  handwritings,  typewriting,  printing,  photostatting,  photographing,  computer models, and any other computerized data and every other means of recording any form of  information,  communications,  or  representation,  including  letters,  works,  pictures, drawings,  sounds,  or  symbols,  or  any  combination  thereof.  Contractor  shall  not  be responsible for any unauthorized modification or use of such information for other than its intended purpose by City.

B. Contractor  shall  fully  defend,  indemnify  and  hold  harmless  City,  its  officers  and employees, and each of them, from and against any and all claims, actions, lawsuits or other proceedings alleging that all or any part of the information prepared, produced, or provided by Contractor under this Contract infringes upon any third party’s trademark, trade  name,  copyright,  patent  or  other  intellectual  property  rights.  City  shall  make reasonable efforts to notify Contractor not later than ten days after City is served with any  such  claim,  action,  lawsuit  or  other  proceeding.  However,  City’s  failure  to  provide notice within the ten‐day period does not relieve Contractor of its obligations hereunder, which survive any termination or expiration of this Contract.

C. All proprietary and other information received from Contractor by City, whether received in  connection  with  Contractor’s  proposal  to  City  or  in  connection  with  Contractor’s performance,  will  be  disclosed  upon  receipt  of  a  request  for  disclosure,  in  accordance with the California Public Records Act; provided, however, that, if any information is set apart and clearly marked “trade secret” when it is provided to City, City shall give notice to Contractor of any request for the disclosure of such information.  The Contractor will then have five days from the date it receives notice to petition the court for a protective order  to  prevent  the  disclosure  of  the  information.  The  Contractor  shall  have  sole responsibility for defense of the actual “trade secret” designation of such information.

D. The parties understand and agree that any failure by Contractor to respond to the notice provided  by  City  and  seek  a  protective  order,  in  accordance  with  the  provisions  of subsection C, above, constitutes a complete waiver by Contractor of any rights regarding the  information  designated  “trade  secret”  by  Contractor,  and  the  information  will  be disclosed by City in accordance with the Public Records Act.

Form Approved by City Attorney 9‐1‐2020  Exhibit D ‐ Page 4

9. Notification of Material Changes in Business. Contractor agrees that if it experiences any material changes in its business, including a  reorganization, refinancing, restructuring, leveraged buyout, bankruptcy, name change,  or loss of key personnel, it will immediately notify the City of the changes. Contractor  also agrees to immediately notify the City of any condition that may jeopardize the  scheduled delivery or fulfillment of Contractor's obligations to the City under this  Contract.

10. Standard  of  Performance.  Contractor  shall  perform  in  the  manner  and  according  to  the standards currently observed by a competent practitioner of Contractor’s profession in California and in compliance with all requirements of this Contract.  All products that Contractor delivers to  City  under  this  Contract  must  be  prepared  in  a  professional  manner  and  conform  to  the standards  of  quality  normally  observed  by  a  person  currently  practicing  in  Contractor’s profession.

Contractor shall assign only competent personnel to perform on its behalf under this Contract.

Contractor must notify the City in writing of any changes in Contractor’s staff assigned to perform under this Contract, before any performance by the new staff member.  If the City, in its sole discretion, determines that any person assigned by the Contractor to perform under this Contract is not performing in accordance with the standards required herein, City shall provide notice to Contractor. Contractor shall immediately remove the assigned person upon receipt of the notice.

11. Performance or Different Terms and Conditions. The City's subsequent performance will not be construed as either acceptance of  additional or different terms and conditions or a counteroffer by the Contractor, nor will  the City's subsequent performance be viewed as acceptance of any provision of the  Uniform Commercial Code, as adopted by any State, that is contrary to the terms and  conditions contained herein. Contractor's performance shall conform to the applicable  requirements of the Sacramento City Charter, Sacramento City Code, and all applicable  State and Federal laws, and all the requirements of this Contract. The California  Commercial Code will apply except as otherwise provided in the Contract.

12. Emergency/Declared Disaster Requirements. If an emergency is declared by the City Manager, or if any portion of the City is declared  a disaster area by the county, state or federal government, this Contract may be  subjected to increased usage. The Contractor shall serve the City during a declared  emergency or disaster, subject to the same terms and conditions that apply during non‐ emergency / non‐disaster conditions. The pricing set forth in this Contract will apply,  without mark‐up, regardless of the circumstances. If the Contractor is unable to fulfill the  terms of the Contract because of a disruption in its chain of supply or service, then the Contractor shall provide proof  of  the  disruption.  Acceptable  forms  of  proof  will  include  a  letter  or  notice  from  the Contractor's source stating the reason for the disruption

13. Term; Suspension; Termination.

A. This Contract is effective on the Effective Date and continues in effect until both parties have  fully  performed  their  respective  obligations  under  this  Contract,  unless  sooner terminated as provided herein.

B. City shall have the right at any time to suspend Contractor’s performance hereunder, in whole or in part, by giving a written notice of suspension to Contractor.  Upon receipt of Form Approved by City Attorney 9‐1‐2020  Exhibit D ‐ Page 5 such notice, Contractor shall immediately suspend its activities under this Contract, as specified in the notice.

C. The City shall have the right to terminate this Contract at any time by giving a written notice  of  termination  to  Contractor.  Upon  receipt  of  such  notice,  Contractor  shall immediately cease performance under this Contract as specified in the notice. If the City terminates this Contract:

(1) Contractor  shall,  not  later  than  five  days  after  receipt  of  the  notice,  deliver  all information prepared under this Contract to the City.

(2) The City shall pay Contractor the reasonable value of Goods or Services provided by Contractor before termination; provided, however, City shall not in any manner be  liable  for  lost  profits  that  might  have  been  made  by  Contractor  had  the Contract not been terminated or had Contractor completed performance required by  this  Contract.  Contractor  shall  furnish  to  the  City  any  financial  information requested by the City to determine the reasonable value of the Goods or Services provided by Contractor.  The foregoing is cumulative and does not affect any right or remedy that City may have in law or equity.

14. Default by Contractor. In case of default by the Contractor, the City reserves the right to procure the  Goods  or  Services  from  other  sources  and  deduct  from  any  monies  due,  or  that  may thereafter  become  due  to  the  Contractor,  the  difference  between  the  price  named  in  this Contract  and the actual cost to the City to procure from an alternate source. Prices paid by the City will be considered the prevailing market price at the time such purchase is made.

15. Guarantee and Warranty. Contractor assumes design responsibility and warrants the articles to be free from  design defect and suitable for the purposes intended by City. If it is determined by the  City that the Goods and Services do not meet the minimum requirements of this  Contract, the Contractor shall correct the same at Contractor's sole expense.

A. The Contractor agrees that the Goods and Services furnished under this Contract will be covered by the industry standard or better warranty.

B. Contractor further warrants that the Goods and Services furnished under this Contract will be covered by the most favorable commercial warranties the Contractor  gives to any customer for the Goods and Services and that the rights and remedies  provided herein are in addition to and do not limit any rights afforded to the City at law  or equity, or by any other clause of this Contract.

C. Any additional warranties provided by law, including the warranty of merchantability and warranty of fitness for a particular purpose will remain in full force and effect and inure to the City's benefit. City reserves all rights and remedies provided by law for breach of any applicable warranty related to the Goods and Services.

D. City's inspections, approval, acceptance, or payment for all or part of any Goods and Form Approved by City Attorney 9‐1‐2020  Exhibit D ‐ Page 6 Services will in no way affect City's warranty rights.

16. Indemnity.

A. Indemnity: Contractor  shall  defend,  hold  harmless  and  indemnify  CITY,  its  officers  and employees, and each and every one of them, from and against all actions, damages, costs, liabilities, claims, demands, losses, judgments, penalties, costs and expenses of every type and  description,  whether  arising  on  or  off  the  site  of  the  work  or  services  performed under  this  Contract,  including,  any  fees  and  costs  reasonably  incurred  by  City’s  staff attorneys  or  outside  attorneys  and  any  fees  and  expenses  incurred  in  enforcing  this provision  (hereafter  collectively  referred  to  as  “Liabilities”),  including  Liabilities  for personal injury or death, damage to personal, real or intellectual property, damage to the environment, contractual or other economic damages, or regulatory penalties, arising out of or in any way connected with performance of or failure to perform this Contract by Contractor,  any  subcontractor  (including  lower‐tier  subcontractors)  or  agent  of Contractor, their respective officers and employees, and anyone else for whose acts or omissions any of them may be liable, whether or not the Liabilities (1) are caused in part by a party indemnified hereunder, or (ii) are litigated, settled or reduced to judgment; provided  that  the  foregoing  indemnity  does  not  apply  to  liability  for  any  damages  for death or bodily injury to persons, injury to property, or other loss, damage, or expense, to  the  extent  arising  from  the  active  negligence  or  willful  misconduct  of,  or  defects  in design  furnished  by,  City,  its  agents,  servants,  or  independent  contractors  who  are directly  responsible  to  City,  except  when  such  agents,  servants,  or  independent contractors  are  under  the  supervision  and  control  of  Contractor  or  any  subcontractor (including lower‐tier subcontractors) or agent of Contractor.

B. Insurance Policies; Intellectual Property Claims: The existence or acceptance by City of any of the insurance policies or coverages described in this Contract does not affect or limit any of City’s rights under this section, nor do the limits of any insurance limit the liability of Contractor hereunder.  This section will not apply to any intellectual property claims, actions, lawsuits or other proceedings subject to the provisions of section 8.B., above.

C. Survival. The provisions of this section will survive any expiration or termination of this Contract.

17. Funding Availability.

A. This Contract is subject to the budget and fiscal provisions of the Charter and the Sacramento City Code.

B. The City’s payment obligation under this Contract will not exceed the amount of funds appropriated and approved for this Contract by the Sacramento City Council.

C. This Section shall govern over any other contrary provision of the Contract.

18. Equal Employment Opportunity.  During the performance of this Contract, Contractor, for itself, its assignees and successors in interest, agrees as follows:

Form Approved by City Attorney 9‐1‐2020  Exhibit D ‐ Page 7 A. Compliance With Regulations: Contractor shall comply with all state, local, and federal anti‐discrimination  laws  and  regulations,  including  the  Executive  Order  11246  entitled “Equal  Opportunity  in  Federal  Employment,”  as  amended  by  Executive  Order  11375, 12086,  and  13672,  and  as  supplemented  in  Department  of  Labor  regulations  (41  CFR Chapter 60), referred to collectively as the “Regulations.”

B. Nondiscrimination: Contractor, with regards to the work performed by it after award and  before  completion  of  the  work  under  this  Contract,  shall  not  discriminate  on  the ground of race, color, religion, sex, national origin, age, marital status, physical handicap or sexual orientation in selection and retention of subcontractors, including procurement of materials and leases of equipment.  Contractor shall not participate either directly or indirectly in discrimination prohibited by the Regulations.

C. Solicitations for Subcontractors, Including Procurement of Materials and Equipment: In all solicitations either by competitive bidding or negotiations made by Contractor for work to  be  performed  under  any  subcontract,  including  all  procurement  of  materials  or equipment, each potential subcontractor or supplier shall be notified by Contractor of Contractor’s  obligation  under  this  Contract  and  the  Regulations  relative  to nondiscrimination on the ground of race, color, religion, sex, national origin, age, marital status, physical handicap or sexual orientation.

D. Information and Reports: Contractor shall provide all information and reports required by the Regulations, or by any orders or instructions issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information and its facilities as may  be  determined  by  the  City  to  be  pertinent  to  ascertain  compliance  with  the Regulations, orders and instructions.  Where any information required of Contractor is in the  exclusive  possession  of  another  who  fails  or  refuses  to  furnish  this  information, Contractor shall so certify to the City, and shall set forth what efforts it has made to obtain the information.

E. Sanctions  for  Noncompliance:  In  the  event  of  noncompliance  by  Contractor  with  the nondiscrimination  provisions  of  this  Contract,  the  City  shall  impose  any  sanctions  it determines are appropriate including:

(1) Withholding  of  payments  to  Contractor  under  this  Contract  until  Contractor complies;
(2) Cancellation, termination, or suspension of this Contract, in whole or in part.

F. Incorporation  of  Provisions:  Contractor  shall  include  the  provisions  of  subsections  A through E, above, in every subcontract, including procurement of materials and leases of equipment, unless exempted by the Regulations, or by any order or instructions issued pursuant thereto.  The City may direct Contractor to take specific actions to enforce these provisions, including sanctions for noncompliance; provided, however, that if Contractor becomes involved in, or is threatened with, litigation with a subcontractor or supplier as a  result  of  such  direction,  Contractor  may  request  that  the  City  join  such  litigation  to protect the City’s interests.

Form Approved by City Attorney 9‐1‐2020  Exhibit D ‐ Page 8

19. Entire  Agreement.  This  Contract,  including  all  Exhibits  and  documents  referenced  herein, contains  the  entire  agreement  between  the  parties  and  supersedes  whatever  oral  or  written understanding they may have had before the execution of this Contract.  No alteration to the terms  of  this  Contract  shall  be  valid  unless  approved  in  writing  by  Contractor,  and  by  City,  in accordance with applicable provisions of the Sacramento City Code.

20. Modification of Contract.  The Contractor shall take no direction from any City employee that changes the executed terms and conditions of the Contract, including Exhibit A, or any change that impacts the cost, price, or schedule, before receiving a written, signed modification to the Contract.

21. Severability.  If a court with jurisdiction rules that any portion of this Contract or its application to any person or circumstance is invalid or unenforceable, the remainder of this Contract will not be  affected  thereby  and  will  remain  valid  and  enforceable  as  written,  to  the  greatest  extent permitted by law.

22. Waiver.  Neither the City’s acceptance of, or payment for, any Goods or Services, nor any waiver by either party of any default, breach or condition precedent, will be construed as a waiver of any provision of this Contract, nor as a waiver of any other default, breach or condition precedent or any other right hereunder. No waiver will be effective unless it is in writing and signed by the waiving party.

23. Governing Law.  This Contract shall be governed, construed and enforced in accordance with the laws  of  the  State  of  California,  except  that  the  rule  of  interpretation  in  California  Civil  Code section 1654 will not apply.  Venue of any litigation arising out of this Contract will lie exclusively in  the  state  trial  court  or  Federal  District  Court  located  in  Sacramento  County  in  the  State  of California, and the parties consent to jurisdiction over their persons and over the subject matter of any such litigation in such courts, and consent to service of process issued by such courts.

24. Assignment Prohibited.  The expertise and experience of Contractor are material considerations for this Contract.  City has a strong interest in the qualifications and capability of the persons and entities  that  will  fulfill  the  obligations  imposed  on  Contractor  under  this  Agreement.  In recognition of this interest, Contractor shall not assign any right or obligation pursuant to this Contract  without  the  written  consent  of  the  City.  Any  attempted  or  purported  assignment without City’s written consent shall be void and of no effect.

25. Binding Effect.  This Contract is binding on the heirs, executors, administrators, successors and assigns of the parties, subject to the provisions of Section 24, above.

26. Compliance  with  Laws.  The  Contractor  shall  be  responsible  for  strict  compliance  with  all applicable laws, regulations, court orders and other legal requirements applicable to the work to be accomplished under the Contract, including the California Occupational Safety and Health Act and  all  applicable  safety  orders  issued  by  the  Division  of  Occupational  Safety  and  Health, Department  of  Industrial  Relations,  State  of  California,  and  all  applicable  requirements  of Underwriters Laboratories and the Federal Communication Commission.

Form Approved by City Attorney 9‐1‐2020  Exhibit D ‐ Page 9

27. Debarment Certification
A. Pursuant to 2 CFR, Part 200, and applicable Executive Orders, the City is restricted in its ability  to  contract  with  certain  parties  that  are  debarred,  suspended,  or  otherwise excluded  or  ineligible  for  participating  in  Federal  assistance  programs  or  activities.  By signing  this  Agreement,  CONTRACTOR  warrants  and  certifies  under  penalty  of  perjury under the laws of the State of California that Contractor, including any owner, partner, director,  officer,  or  principal  of  the  CONTRACTOR,  or  any  person  in  a  position  with management responsibility or responsibility for the administration of federal funds:
(1) Is  not  presently  debarred,  suspended,  proposed  for  debarment,  declared ineligible,  or  voluntarily  excluded  from  covered  transactions  by  any  federal  or  state department/agency;
(2) Has not within a three‐year period preceding this certification been convicted of or had a civil judgment rendered against it for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public transaction or contract  (federal,  state,  or  local);  violation  of  federal  or  state  antitrust  statutes;  or commission  of  embezzlement,  theft,  forgery,  bribery,  falsification  or  destruction  of records, making false statements, receiving stolen property, or other criminal felony; (3) Is  not  presently  indicted  for  or  otherwise  criminally  or  civilly  charged  by  a governmental  entity  (federal,  state,  or  local)  with  commission  of  any  of  the  offenses enumerated in paragraph (b) above; or
(4) Has not, within a three‐year period preceding this certification, had one or more public contracts (federal, state, or local) or transactions terminated for cause or default. (5) Has not been notified, within a three‐year period preceding this certification, been notified of any delinquent Federal taxes in an amount that exceeds $3,500 for which the liability remains unsatisfied. Federal taxes are considered delinquent if the tax liability has been finally determined and the taxpayer is delinquent in making payment, as defined in Section 52.209‐5 of the Federal Acquisition Regulations.

B. CONTRACTOR  further  warrants  and  certifies  that  it  shall  not  knowingly  enter  into  any transaction with any subcontractor, material supplier, or vendor who is debarred, suspended, declared  ineligible,  or  voluntarily  excluded  from  covered  transactions  by  any  federal  or  state department/agency. Any exceptions to the warranties and certifications in this Section must be disclosed to the City.

C. Exceptions will not necessarily result in denial of recommendation for award, but will be considered  in  determining  Contractor’s  responsibility.  Disclosures  must  indicate  to  whom exceptions apply, the initiating agency, and dates of action.

D. City  will  review  the  Federal  Government’s  System  for  Award  Management  Exclusions maintained by the General Services Administration for eligibility, prior to the execution of this Agreement. The CONTRACTOR shall provide immediate written notice to the City if, at any time prior  to  execution,  the  CONTRACTOR  learns  this  certification  is  erroneous  or  has  become erroneous  by  reason  of changed  circumstances.  If  it  is  later  determined  that  the  Contractor’s warranties  and  certification  in  this  Section  were  erroneous,  the  City  may  terminate  this Agreement for default.
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SIGNATURES

The parties have signed this Contract, effective as of the day and year first stated above.

CONTRACTOR
Under penalty of perjury, I certify that the information provided here is correct.

Signature:

Title:  President

Additional Signature (if required):

Title:

CITY OF SACRAMENTO
A Municipal Corporation

APPROVED AS TO FORM:

Signature:

Title:  Senior Deputy City Attorney

Reviewed By:

Signature:

Title:  Program Analyst

Approved By:

Signature:

Title:  Assistant City Manager

Additional Signature (if required):

Title:  Director of Utilities

Stacy Larkin (Mar 5, 2023 09:01 PST)

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@BCL@402AD8B6, Rev. 09/09/2020
RESOLUTION NO. 2023-

Adopted by the Sacramento City Council

May 30, 2023

Florin Pump Station Heat Exchangers Project

BACKGROUND
A. The Florin Pump Station and Reservoir are considered an integral part of the water distribution system, almost as important as the treatment plants themselves. The heat exchange system for pumps number 1 and 2 of the pump station have failed and will likely fail for pump number 3. An emergency contract was issued to TNT Industrial Contractors, Inc. to procure and install replacement heat exchange systems for all three pumps.

B. A supplemental agreement to City Agreement 2018-0656 with HydroScience Engineers Inc. is needed for construction support services to install the replacement heat exchange systems.

C. A budget augmentation of $1,000,000 is required to provide sufficient funds to the Reservoir Rehab Program (Z14130500, Fund 6005) for the Florin PS Heat Exchangers project.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. City Agreement PRC002149 with TNT Industrial Contractors, Inc. for the emergency replacement of heat exchange systems for the Florin Reservoir Pump Station Pumps for an amount not to exceed $800,000 is ratified.

Section 2. The City Manager or the City Manager’s designee is authorized to execute Supplemental Agreement No. 7 to City Agreement 2018-0656 with HydroScience Engineers Inc. to provide construction support services for an amount not to exceed $50,000, bringing the agreement’s total not-to-exceed amount to $298,898.

Section 3. The City Manager or the City Manager’s designee is authorized to transfer $1,000,000 from the Florin Reservoir Backup Engine (Z14130100, Fund 6005) to the Reservoir Rehab Program (Z14130500, Fund 6005).

@BCL@402AD8B6, Rev. 09/09/2020
Adopted by the City of Sacramento City Council on May 30, 2023, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Attest:

The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Sacramento City Council.