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RPVCCA_CC_SR_2015_04_21_I_McCarrell_Canyon_Pipe_Relining_ProjectAM CITY OF t RANCHO PALOS VERDES MEMORANDUM TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS FROM: MICHAEL THRONE, DIRECTOR OF PUBLIC WORKS DATE: APRIL 21, 2015 SUBJECT: AWARD CONTRACTS FOR CONSTRUCTION AND INSPECTION SERVICES FOR THE McCARRELL CANYON PIPE RELINING PROJECT (SUPPORTS 2014 CITY COUNCIL GOAL #2, INFRASTRUCTURE) REVIEWED: DOUG WILLMORE, CITY MANAGER Project Manager: Andy Winje, Senior Engineer RECOMMENDATION Approve the project specifications on file in the Public Works Department for the McCarrell Canyon Pipe Relining Project. 2. Award a construction contract to Industrial Coatings and Fireproofing, Inc. in the amount of $496,994.69, a professional services agreement for inspection services to West Coast Coating Consultants, LLC in the amount of $31,500, and a professional services agreement to KOA Corporation in the amount of $14,000 and authorize Staff to utilize an additional 10% ($50,000) for project contingency. 3. Authorize the Mayor and City Clerk to execute the agreements. BACKGROUND The City installed the 66 -inch diameter 2,100 foot long McCarrell Canyon storm drain pipe in 2007. During recent inspections, Staff has noted the interior lining (coating) of the steel pipe has worn excessively in places due to the heavy debris loads handled by the pipe in large storms. The purpose of the lining is to protect the steel pipe wall from corrosion due to the elements. Because this pipe is situated adjacent to salty marine air and moisture, it is especially important to restore the integrity of the lining in the pipe. During the construction of the San Ramon pipeline project Staff became aware of a newer technology used to line large diameter steel pipes that experience heavy debris loading. 1 Award Contracts for McCarrell Canyon Pipe Relining April 21, 2015 Page 2 of 3 The newer technology coating is more resistant to impacts and abrasion that the original lining material that protected the pipe when installed in 2007. Staff has developed construction documents specifying this newer technology be used to restore the pipe lining. The pipeline lies beneath private property for a portion of its length and the Contractor and inspectors will need to access the pipe and stage a portion of its operation in storm drain easements on those properties. Staff is working in cooperation with the managers of those properties to coordinate the work. The engineer's estimate for this project is $620,000. ANALYSIS Construction Contract The project was publicly advertised and sealed bids were received and opened on April 9, 2015. Industrial Coatings and Fireproofing, Inc. submitted the lowest responsive bid out of the six bids received. The following table summarizes the bids received: BID SUMMARY Construction Companies Bid Amount Industrial Coating & Fireproofing, Inc $ 496,994.69 Sancon, Inc. $ 594,635.00 FD Thomas, Inc. $ 669,900.00 Abhe & Svoboda, Inc. $ 672,533.00 Murphy Industrial Coatings $ 724,373.00 Certified Coatings, Inc. $1,148,745.00 Staff has verified Industrial Coatings & Fireproofing, Inc.'s references and found their past performance on jobs of similar size and scope to be satisfactory. Industrial Coatings & Fireproofing, Inc. has completed several similar -scale projects, including similar work at the recently completed San Ramon Canyon Storm Drain Project, and other local industrial facilities. Their bid, bonds, and insurance documents are in order and their contractor's license is current. Project Inspection To ensure first-class work, materials, and workmanship during this specialty construction project, specialized inspection services are needed to oversee surface preparation and lining activities in the pipe and verify specification compliance. Staff has selected West Coast Coating Consultants, LLC based on their qualifications and prior experience on past similar projects. The cost for this project's coating inspection services will not exceed $31,500. Construction Management KOA Corporation provided construction management and support for the successful San Ramon Canyon Storm Drain Project, which included similar work to the scope of work for this project. KOA also served as the construction manager when the McCarrell Canyon pipe was installed and has an established relationship with the private property owners K Award Contracts for McCarrell Canyon Pipe Relining April 21, 2015 Page 3of3 whose property must be accessed to do the work. Staff recommends continuing the use of KOA for construction management and support services for this related project, in order to provide continuity and familiarity of City processes and State grant requirements from the San Ramon project and previous McCarrell Canyon work to this project. KOA has proposed a lump sum cost of $14,000 for this work. ALTERNATIVE The alternative is to reject all construction bids and re -advertise the construction project. This alternative could take approximately two months to complete and may result in an increase in bids. It will also result in a loss of eligibility for grant reimbursement. CONCLUSION Adopting Staff's recommendations will award a construction contract to Industrial Coatings & Fireproofing, Inc. in the amount of $496,994.69, award a professional services contract in the amount of $31,500 to West Coast Coating Consultants for coatings inspection, award a professional services contract in the amount of $14,000 to KOA Corporation for construction management and support and authorize staff to utilize 10% of the contract amount ($50,000) as contingency for unforeseen circumstances. Construction is expected to begin in May 2015 and be completed by June 30, 2015. The City Attorney has reviewed and approved the construction and professional services agreements. FISCAL IMPACT The recommended action will result in a total project authorized expenditure of $592,494.69. Funding for the project is included in the Water Quality Flood Protection Program of the FY14-15 budget including continuing appropriations from the previous year. A portion of the project costs (about half) are eligible for reimbursement from remaining grant monies awarded as part of the San Ramon project. An amendment to the Prop 1 E Grant Agreement allows funds to be used on this project. However, the deadline for work to be completed is June 30, 2015. Therefore, it is important to award the work as soon as possible to allow the contractor to complete the work by the June 30th deadline. Work performed after this date will not be eligible for reimbursement. Attachments: Project Location Map (page 4) Industrial Coatings & Fireproofing, Inc. Construction Contract (page 5) West Coast Coating Consultant, LLC Professional Services Agreement (page 30) KOA Corporation Professional Services Agreement (page 46 ) K Project Location Map CITY OF RANCHO PALOS VERDES PUBLIC WORKS AGREEMENT MCCARRELL CANYON PIPE RELINING PROJECT THIS AGREEMENT ("Agreement") is made and entered this 21st day of April, 2015, by and between the CITY OF RANCHO PALOS VERDES, a California municipal corporation ("City") and Industrial Coatings and Fireproofing, Inc. ("Contractor"). Contractor's license number is 860266. In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows: Scope of Services. Contractor shall perform the work and provide all labor, materials, equipment and services in a good and workmanlike manner for the project identified as MCCARRELL CANYON PIPE RELINING PROJECT ("Project"), as described in this Agreement and in the Bid Documents (including the Notice Inviting Sealed Bids, the Instructions to Bidders, the Proposal, the General Provisions, the Special Provisions, the Technical Provisions, and all addenda as prepared prior to the date of bid opening setting forth any modifications or interpretations of any said documents), which are attached hereto as Exhibit "A" and incorporated herein by this reference, including miscellaneous appurtenant work. All work shall be performed in accordance with the latest edition of the Standard Specifications for Public Works Construction (commonly known as the "Greenbook"), including supplements, prepared and promulgated by the Southern California Chapter of the American Public Works Association and the Associated General Contractors of California (collectively "Standard Specifications"), which is incorporated herein by this reference. In the event of any conflict between the terms of this Agreement and incorporated documents, the terms of this Agreement shall control. 2. Extra Work. Extra work, when ordered in writing by the Director of Public Works and accepted by the Contractor, shall be paid for under written work order in accordance with the terms therein provided. Payment for extra work will be made at the unit price or lump sum previously agreed upon in writing between the Contractor and the Director of Public Works. All extra work shall be adjusted daily upon report sheet furnished by the Contractor, prepared by the Director of Public Works, and signed by both parties, and said daily report shall be considered thereafter the true records of extra work done. 3. Effective Date. This Agreement is effective as of the date listed above, and shall remain in full force and effect until Contractor has rendered the services required by this Agreement. 4. Time. Time is of the essence in this Agreement. 5. Force Majeure. Neither the City nor Contractor shall be responsible for delays in performance under this Agreement due to causes beyond its control, including but not limited to acts of God, acts of the public enemy, acts of the Government, fires, floods or other casualty, epidemics, earthquakes, labor stoppages or slowdowns, freight embargoes, unusually severe weather, and supplier delays due to such causes. Neither economic nor market conditions nor the financial condition of either party shall be considered a cause to excuse delay pursuant to this Section. Each party shall notify the other promptly in writing of each such excusable delay, its cause and its expected delay, and shall upon request update such notice. 61 6. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to exceed amount of four hundred ninety-six thousand nine hundred ninety-four dollars and sixty-nine cents ($496,994.69) in accordance with the prices as submitted in Contractor's Proposal, attached hereto as Exhibit "B" and incorporated herein by this reference. 7. Payments. City shall make payments within thirty (30) days after receipt of an undisputed and properly submitted payment request from Contractor. City shall return to Contractor any payment request determined not to be a proper payment request as soon as practicable, but not later than seven (7) days after receipt, and shall explain in writing the reasons why the payment request is not proper. A payment shall be made as the City Council of the City prescribes upon estimates approved by the City Council. However, progress payments shall not be made in excess of ninety-five percent (95%) of the percentage of actual work completed plus a like percentage of the value of material delivered on the ground or stored subject to, or under the control of, the City, and unused. The City shall withhold not less than five percent (5%) of the Agreement price until final completion and acceptance of the Project. However, at any time after fifty percent (50%) of the work has been completed, if the City Council of the City finds that satisfactory progress is being made, it may, at its discretion, make any of the remaining progress payments in full for actual work completed. 8. Substitute Security. a) At the written request and expense of Contractor, securities equivalent to any moneys withheld by the City to ensure performance under this Agreement shall be deposited with the City, or with a state or federally chartered bank in the State of California as the escrow agent, that shall then pay those moneys to Contractor. Upon satisfactory completion of the Agreement, the securities shall be returned to Contractor. b) Alternatively, Contractor may request that the City shall make payment of retentions earned directly to the escrow agent at the expense of Contractor. At the expense of Contractor, Contractor may direct the investment of the payments into securities, and Contractor shall receive the interest earned on the investments upon the same terms provided for securities deposited by Contractor. Upon satisfactory completion of the Agreement, Contractor shall receive from the escrow agent all securities, interest, and payments received by the escrow agent from the City, pursuant to the terms of this Section. C) Securities eligible for investment shall include those listed in California Government Code Section 16430, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit, or any other security to which Contractor and the City mutually agree in writing. Contractor shall be the beneficial owner of any securities substituted for moneys withheld and shall receive any interest thereon. d) If Contractor elects to receive interest on moneys withheld in retention by the City, it shall, at the request of any subcontractor performing more than five percent (5%) of Contractor's total bid, make that option available to the subcontractor regarding any moneys withheld in retention by Contractor from the subcontractor. Further on mandatory details are provided in Public Contract Code Section 22300(d), which is incorporated herein by this reference. e) The escrow agreement for security deposits in lieu of retention shall be substantially similar to the form provided in Public Contract Code Section 22300(f), which is incorporated herein by this reference. 9. Taxes. Contractor shall calculate payment for all sales, unemployment, old age pension and other taxes imposed by local, State of California and federal law. These payments are included in the total amounts in Exhibit "B." 10. Audit. The City or its representative shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its billings to the City as a condition precedent to any payment to Contractor. Contractor will promptly furnish documents requested by the City. Additionally, Contractor shall be subject to State Auditor examination and audit at the request of the City or as part of any audit of the City, for a period of three (3) years after final payment under this Agreement. 11. Unresolved Disputes. In the event that a dispute arises between the City and Contractor regarding whether the conditions materially differ, involve hazardous waste, or cause a decrease or increase in Contractor's cost of or time required for performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by the Agreement, but shall proceed with all work to be performed under the Agreement. Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. In the event of any dispute or controversy with the City over any matter whatsoever, Contractor shall not cause any delay or cessation in or of work, but shall proceed with the performance of the work in dispute. This includes disputed time extension requests and prices for changes. The disputed work will be categorized as an "unresolved dispute" and payment, if any, shall be as later determined by mutual agreement or a court of law. Contractor shall keep accurate, detailed records of all disputed work, claims and other disputed matters. Public Contract Code Sections 20104 et seq. and Rancho Palos Verdes Municipal Code chapter 3.24 ("Claims Against the City") shall govern the procedures of the claim process, and these provisions are incorporated herein by this reference. 12. Termination. This Agreement may be canceled by the City at any time with or without cause without penalty upon thirty (30) days' written notice. In the event of termination without fault of Contractor, City shall pay Contractor for all services satisfactorily rendered prior to date of termination as determined by the City, and such payment shall be in full satisfaction of all services rendered hereunder. 13. Indemnity. a) Contractor's Duty. To the maximum extent permitted by law, Contractor shall defend, indemnify, and hold harmless the City, its elected officials, officers, employees, volunteers, agents, successors, assigns, and those City agents serving as independent contractors in the role of City officials (collectively "Indemnitees") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, proceedings, suits, losses, bid protests, stop notices, judgments, fines, liens, penalties, liabilities, costs and expenses of every 7 kind and nature whatsoever, in any manner arising out of or incident to any act, failure to act, error or omission of Contractor or any of its officers, agents, servants, employees, subcontractors, materialmen, suppliers or their officers, agents, servants or employees, arising out of the Agreement, including without limitation, the payment of all consequential damages, attorneys' fees, experts' fees, and other related costs and expenses (individually, a "Claim," or collectively, "Claims"). Further, Contractor shall appoint competent defense counsel approved by the City Attorney at Contractor's own cost, expense and risk, to defend any and all such Claims that may be brought or instituted against Indemnitees. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against Indemnitees in any such Claim. Contractor shall reimburse Indemnitees for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Contractor or Indemnitees. This indemnity shall apply to all Claims regardless of whether any insurance policies are applicable. b) Bid Protests. In addition to its obligations pursuant to Section 13(a), Contractor shall reimburse the City for all attorneys' fees and costs incurred by City in connection with, arising out of or incident to any bid protest. C) Civil Code Exception. Nothing in Section 13(a) shall be construed to encompass Indemnitees' sole negligence or willful misconduct to the limited extent that the underlying Agreement is subject to Civil Code section 2782(a) or the City's active negligence to the limited extent that the underlying Agreement is subject to Civil Code section 2782(b). d) Nonwaiver of Rights. Indemnitees do not and shall not waive any rights that they may possess against Contractor because the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. This indemnity provision is effective regardless of any prior, concurrent, or subsequent active or passive negligence by Indemnitees and shall operate to fully indemnify Indemnitees against any such negligence. e) Waiver of Right of Subrogation. Contractor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all Claims arising out of or incident to the activities or operations performed by or on behalf of the Contractor regardless of any prior, concurrent or subsequent active or passive negligence by Indemnitees. f) Survival. The provisions of this Section 13 shall survive the termination of this Agreement and are in addition to any other rights or remedies that Indemnitees may have under the law. Payment is not required as a condition precedent to an Indemnitee's right to recover under this indemnity provision, and an entry of judgment against a Contractor shall be conclusive in favor of the Indemnitee's right to recover under this indemnity provision. 14. Incorporation bV Reference. All of the following documents are attached hereto and incorporated herein by this reference: City of Rancho Palos Verdes Instructions for Execution of Instruments; Insurance Requirements for the City of Rancho Palos Verdes E Public Works Contract; Workers' Compensation Certificate of Insurance; Additional Insured Endorsement (Comprehensive General Liability); Additional Insured Endorsement (Automobile Liability); and Additional Insured Endorsement (Excess Liability). 15. Antitrust Claims. In entering into this Agreement, Contractor offers and agrees to assign to the City 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 California Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Agreement. This assignment shall be made and become effective at the time the City tenders final payment to Contractor without further acknowledgment by the parties. 16. Trenching and Excavations. If the project involves trenching more than four (4) feet deep, Contractor shall promptly and before the following conditions are disturbed notify the City in writing of any: material that Contractor believes may be material that is hazardous waste, as defined in California Health and Safety Code Section 25117, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; subsurface or latent physical conditions at the site differing from those indicated; or 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 the City finds that the conditions do materially differ or do involve hazardous waste and cause a decrease or increase in Contractor's cost of or the time required for performance of any part of the work, the City shall issue a change order. 17. Utilities. The City acknowledges its responsibilities under Government Code section 4215 and incorporates that section herein by this reference. 18. Location of Existing Elements. The methods used and costs involved to locate existing elements, points of connection and all construction methods are Contractor's sole responsibility. Accuracy of information furnished, as to existing conditions, is not guaranteed by the City. Contractor, at its sole expense, must make all investigations necessary to determine locations of existing elements, which may include, without limitation, contacting U.S.A. Alert and other private underground locating firm(s), utilizing specialized locating equipment and/or hand trenching. 19. Independent Contractor. Contractor is and shall at all times remain, as to the City, a wholly independent contractor. Neither the City nor any of its agents shall have control over the conduct of Contractor or any of the Contractor's employees, except as herein set forth, and Contractor is free to dispose of all portions of its time and activities which it is not obligated to devote to the City in such a manner and to such persons, firms, or corporations at the Contractor wishes except as expressly provided in this Agreement. Contractor shall have no power to incur any debt, obligation, or liability on behalf of the City, bind the City in any manner, or otherwise act on behalf of the City as an agent. Contractor shall not, at any time or in any manner, represent that it or any of its agents, servants or employees, are in any manner agents, servants or employees of City. Contractor agrees to pay all required taxes on amounts paid to Contractor under this Agreement, and to indemnify and hold the City harmless from any and all taxes, assessments, penalties, and interest asserted against the City by reason of the independent contractor relationship created by this Agreement. Contractor shall fully comply with the workers' compensation law regarding Contractor and its employees. Contractor further agrees to indemnify and hold the City harmless from any failure of Contractor to comply with applicable workers' compensation laws. The City shall have the right to offset against the amount of any compensation due to Contractor under this Agreement any amount due to the City from Contractor as a result of its failure to promptly pay to the City any reimbursement or indemnification arising under this Section. 20. Prevailing Wages. City and Contractor acknowledge that this project is a public work to which prevailing wages apply. The Agreement to Comply with California Labor Law Requirements is attached hereto and incorporated herein by this reference. Eight hours of labor constitutes a legal day's work. 21. Workers' Compensation. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, the Contractor hereby certifies as follows: "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 under- take 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 contract." 22. Subcontracting. Contractor shall adhere to all provisions of the Subletting and Subcontracting Fair Practices Act, Public Contract Code Section 4100 et seq., which is incorporated herein by this reference. 23. Nondiscriminatory Employment. Contractor shall not unlawfully discriminate against any individual based on race, color, religion, nationality, gender, sex, sexual orientation, age or condition of disability. Contractor understands and agrees that it is bound by and will comply with the nondiscrimination mandates of all statutes and local ordinances and regulations. 24. Debarred, Suspended or Ineligible Contractors. Contractor shall not be debarred throughout the duration of this Agreement. Contractor shall not perform work with debarred subcontractor pursuant to California Labor Code Section 1777.1 or 1777.7. 25. Compliance with Laws. Contractor shall comply with all applicable federal, state and local laws, ordinances, codes and regulations in force at the time Contractor performs pursuant to this Agreement. 26. Bonds. Contractor shall obtain faithful performance and payment bonds, each in an amount that is not less than the total compensation amount of this Agreement, and nothing in this Agreement shall be read to excuse this requirement. The required forms entitled Payment Bond (Labor and Materials) and Performance Bond are attached hereto and incorporated herein by this reference. 27. Contractor's Representations. Contractor represents, covenants and agrees that: a) Contractor is licensed, qualified, and capable of furnishing the labor, materials, and expertise necessary to perform the services in accordance with the terms and conditions set forth in this Agreement; b) there are no obligations, commitments, or impediments of 10 any kind that will limit or prevent its full performance under this Agreement; c) there is no litigation pending against Contractor, and Contractor is not the subject of any criminal investigation or proceeding; and d) to Contractor's actual knowledge, neither Contractor nor its personnel have been convicted of a felony. 28. Conflicts of Interest. Contractor agrees not to accept any employment or representation during the term of this Agreement or within twelve (12) months after completion of the work under this Agreement which is or may likely make Contractor "financially interested," as provided in Government Code Section 1090 and 87100, in any decisions made by City on any matter in connection with which Contractor has been retained pursuant to this Agreement. 29. Third Party Claims. City shall have full authority to compromise or otherwise settle any claim relating to the Agreement at any time. City shall timely notify Contractor of the receipt of any third -party claim relating to the Agreement. City shall be entitled to recover its reasonable costs incurred in providing this notice. 30. Non -Assignability; Subcontracting. Contractor shall not assign or transfer any interest in this Agreement nor any part thereof, whether by assignment or novation, without the City's prior written consent. Any purported assignment without written consent shall be null, void, and of no effect, and Contractor shall hold harmless, defend and indemnify the City and its officers, officials, employees, agents and representatives with respect to any claim, demand or action arising from or relating to any unauthorized assignment. 31. Applicable Law. The validity, interpretation, and performance of this Agreement shall be controlled by and construed under the laws of the State of California, excluding California's choice of law rules. Venue for any such action relating to this Agreement shall be in the Los Angeles County Superior Court. 32. Titles. The titles used in this Agreement are for convenience only and shall in no way define, limit or describe the scope or intent of this Agreement or any part of it. 33. Authority. The person executing this Agreement on behalf of Contractor warrants and represents that he or she has the authority to execute this Agreement on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder. 34. Entire Agreement. This Agreement, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties which expressly refers to this Agreement. 35. Construction. In the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein, the interpretation of this Agreement shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted the Agreement or who drafted that portion of the Agreement. 11 36. Non -waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by the City of any payment to Contractor constitute or be construed as a waiver by the City of any breach of covenant, or any default which may then exist on the part of Contractor, and the making of any such payment by the City shall in no way impair or prejudice any right or remedy available to the City with regard to such breach or default. 37. Notice. Except as otherwise required by law, any notice or other communication authorized or required by this Agreement shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during Contractor's or City's regular business hours or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses listed below, or at such other address as one party may notify the other: To CITY: Michael Throne, Director of Public Works City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 To CONTRACTOR: The address listed in Exhibit "B." 38. Counterparts. This Agreement may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes. 39. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. [signatures on next page] W IN WITNESS WHEREOF, the parties hereto have executed the within Agreement the day and year first above written. ATTEST: By: City Clerk Dated: CITY OF RANCHO PALOS VERDES By: Mayor APPROVED AS TO FORM: By: . City Attorney ("CONTRACTOR") By: Printed Name: Title: By: Printed Name: Title: 13 EXHIBIT "A" BID DOCUMENTS (Bid documents are on file with the Director of Public Works) 14 EXHIBIT "B" CONTRACTOR'S PROPOSAL 15 PROPOSAL CITY OF RANCHO PALOS VERDES MCCARRELL CANYON PIPE RELINING PROJECT TO THE DIRECTOR OF PUBLIC WORKS, CITY OF RANCHO PALOS VERMES: The undersigned, as bidder, declares that: (1) this proposal is made without collusion with any other person, firm or corporation, and that the only persons or parties interested as principals are those named herein; (2) bidder has carefirlly examined the project plans, specifications, instructions to bidders, proposal, notice to contractors and all other information firnished therefore and the site of the proposed work; (3) bidder has investigated and is satisfied as to the conditions to be encountered, the character, quality and quantities of work to be performed and materials to be furnished. Furthermore, bidder agrees that submission of this proposal shall be conclusive evidence that such examination and investigation have been made and agrees, in the event this contract be awarded to bidder, to enter into a contract with the CITY OF RANCHO PALOS VERDES, to perform said proposed work in accordance with the plans, if any, and the terms of the specifications, in the time and manner therein prescribed, and to f irnish or provide all materials, labor, tools, equipment, apparatus and other means necessary so to do, except such thereof as may otherwise be furnished or provided under the terms of said specifications, for the following stated unit prices or lump -sun) price as submitted on the Schedule attached hereto: The bidder shall submit as part of this proposal a completed copy of the Contractor's Industrial Safety Record. Accompanying this proposal is Bid Bond (Insert) "$ 49,699.47 "cash," "Cashier's Check," "certified check," or "Bid Bond," as the case may be) in the amount equal to at least ten percent (10%) of the total aggregate bid price hereof based on the quantities shown and the unit prices quoted in the Bid Sheets. The undersigned further agrees that should he/she be awarded the contract on the basis hereof and thereafter, defaults in executing the required contract, with necessary bonds and documents, within ten (10) days, not including Sundays and legal holidays, after having received notice that the contract has been awarded and is ready for signature, the proceeds of the security accompanying his bid shall become the property of the CITY OF RANCHO PALOS VERDES and this proposal and the acceptance thereof may be considered null and void. Licensed in accordance with an act providing for the registration of contractors, California Contractor's License No. 86A6 L-33�,,C41,ss , Expiration Date 6/30/2015 Signature(s) of bidder: If an individual, so state. If a firm or co -partnership, state the firm name and give the names of all individual co-partners cornposing the firth. If a corporation, state legal name of corporation, also names of president, secretary, treasurer, and manager thereof. Two notarized officer's signatures and the corporate seal are required for corporations, Legal Business Name: Industrial Coatings & Fireproofing Inc. Address: 1398 E. 29th Street Signal Hill, CA 90755 P - l R6876•0001\1$004100.doc 16 Telephonc:_ (562)426-71 Contact:_ Shawn Claypool Proposals Nvllich do not Show the number and date of the Bidder's License under the provisions of Chapter 9 of Division 3 of the Business & Professional Code will be rejected. To be submitted with eaob bid to contract for City of Rancho Palos Verdes MCCARRELL CANYON PIPE RELINING PROJECT Bid Date 4/9/2015 10:00am PST This information must include all construction work undertaken in the State of California by the bidder and partnership joint venture or corporation that any principal of the bidder participated in as a principal or owner for the last five calendar years and the current calendar year prior to the date of bid submittal. Separate information shall be submitted for each particular partnership, joint venture, corporate or individual bidder. The bidder• may attach any additional information or explanation of data whicb bidder would like to be taken into consideration in evaluating the safety record. An explanation must be attached of the circumstances surrounding any and all fatalities, P-2. 86876.0001\1800410v2.doc 17 CITY OF RANCHO PALOS VERDES BID SHEET" MCCARRELL CANYON PIPE RELINING PROJECT NAME OF COMPANY: industrial Coatings & Fireproofing Inc. To the Honorable Mayor and Members of the City Council: In compliance with the Notice Inviting Sealed Bids, the undersigned hereby agrees to enter into a contract to furnish all labor, materials, equipment and supplies for the project identified as MCCARRELL CANYON PIPE RELINING PROJECT in accordance with the specifications and plans for demolition, construction and installation in the Contract Documents which are on file in the office of the Director of Public Works of the City of Rancho Palos Verdes to the satisfaction and under the direction of the Director of Public Works at the following prices: LUMP SUM ITEMS SHALL INCLUDE PROVIDING AND INSTALLATION OF ALL COMPONENTS STIPULATED WITHIN THE CONTRACT DOCUMENTS AND NECESSARY INCIDENTALS TO FACILITATE PROVIDING SAID COMPONENTS. SURVEY, GRADING, AND BMPS SHALL BE CONSIDERED INCLUDED IN THE INDIVIDUAL BID ITEMS. NO ADDITIONAL PAYMENTS WILL BE MADE. The quantities reflected on the plans and in the bid -sheets are representative of the amount of work for each item on the project, but are not final quantities to be used for computing payment. Payment will be based on the measurement of actual work completed. The contractor must aiotify in writing to the project manager of all discrepancies between actual bid quantities and those shown in the bid document prior to commencement of work in any area of the project. P-3 86876.0001\18004100.doc BID SCHEDULE TOTAL BASE BID SCHEDULE IN NUMBERS: $ 496,994.69 TOTAL BASE BID SCHEDULE IN WORDS: Four Hundred Ninety-Stx Thousand, Nine Hundred Ninety Four Uollursand Sixty Nine Cents The contract shall be awarded to the lowest responsible bidder based on the TOTAL BASE BID. INFORMATION REQUIRED Or BIDDER The bidder is required to supply the following information: (Additional sheets may be attached if necessary.) (1) Address; 1398 E. 29th Street Signal hill, CA 90755 (2) Telephone: (562)426-7105 (3) Type of firm - Individual, Partnership, or Corporation: (4) Corporation organized under the laws of the State of California (5) Contractor's license number and class: 860266 C-33 (6) DIR Contractor Registration Number: 1600018402 (7) List the names and addresses of all members of the firm or names and titles of all officers of the corporation: Shawn Claypool - Vice President Rene Godov - President P-4 R6876.00011180041W.doc ICJ UNIT OF UNIT TOTAL ITEM DESCRIPTION MEASURE QUANTITY COST $ COST b 1-- Mobilization LS —1 $20,000 – _ 520,000 2 Slant Drain & Lower Canyon: Station 10+54 LP 428 th. a 14+58,360 $390.18 $166,997.04 degrees with 801nil 3 Upper Canyon: Station 14+48 thru 32+25,120 degrees with 80 mil, LF 1777 $174.45 $309,997.65 240 degrees with 30 mil TOTAL BASE BID SCHEDULE IN NUMBERS: $ 496,994.69 TOTAL BASE BID SCHEDULE IN WORDS: Four Hundred Ninety-Stx Thousand, Nine Hundred Ninety Four Uollursand Sixty Nine Cents The contract shall be awarded to the lowest responsible bidder based on the TOTAL BASE BID. INFORMATION REQUIRED Or BIDDER The bidder is required to supply the following information: (Additional sheets may be attached if necessary.) (1) Address; 1398 E. 29th Street Signal hill, CA 90755 (2) Telephone: (562)426-7105 (3) Type of firm - Individual, Partnership, or Corporation: (4) Corporation organized under the laws of the State of California (5) Contractor's license number and class: 860266 C-33 (6) DIR Contractor Registration Number: 1600018402 (7) List the names and addresses of all members of the firm or names and titles of all officers of the corporation: Shawn Claypool - Vice President Rene Godov - President P-4 R6876.00011180041W.doc ICJ (8) Number of years experience as a contractor in construction work 8 years (9) hist at least tlu•ee similar projects completed as of recent date: Contract Amount Class of Work Date Completed Name, Addt•ess of Owner, & Telephone No. $2 181 p00L2014) _, C-33 _ On- oin Phillips b6 Scott i7unbar�310)290-1524 _ M19.000(20141_ C-33 On- oin AES - Stuart Bakke (714)374-1462 C3a_.Parsons d $221,000 2014 C-33 12/31/2014 Kinder Mor an - Wa ne Eggerneyer 714 560-4871 (10) List the name of the person who inspected the site of the proposed work for your firm: Shawn Claypq_41 (10) NOTA: Upon request of the CITY, the bidder shall fiu`ish evidence showing a notarized financial statement, financial data, construction experience, or other information. (11) "Bidder shall be properly licensed at the time of bid submission or t11e bid shall be considered non-responsive and sliall be rejected." P-5 86876.0001 \1 8004 1 M.doc 62)493-7761 20 STATEMENT ACKNOWLEDGING PENAL AND CIVIL PENALTIES CONCERNING THE CONTRACTORS' LICENSING LAWS [Business & Professions Code 7028.151 [Public Contract Code 20103,51 1, the undersigned, certify that I am aware of the following provisions of California law and that I, or the entity oil whose behalf this certification is given, hold a currently valid California contractor's license as set forth below: Business & Prgfessions Corte 7028.15,- (a) 028.15, (a) It is a misdemeanor for any person to submit a bid to a public agency in order to engage in the business or act in the capacity of a contractor within this state without having a license therefore, except in any of the following cases: (1) The person is particularly exempted from this chapter. (2) The bid is submitted on a state project governed by Section 10164 of the Public Contract Code or on any local agency project governed by Section 20104 [now ` 20103.5] of the Public Contract Code, (b) If a person has been previously convicted of the offense described in this section, the court shall impose a fine of 20 percent of the price of the contract under- which the unlicensed person performed contracting work, or four thousand five hundred dollars ($4,500), whichever is greater, or imprisonment in the county jail for not less than 10 days nor more than six months, or both, Irr the event the person performing the contracting work has agreed to filrnish materials and labor on an hourly basis, "the price of the contract" for the purposes of this subdivision means the aggregate sum of the cost of materials and labor furnished and the cost of completing the work to be performed. (c) This section shall not apply to a joint venttn•e license, as required by Section 7029.1. However, at the time of making a bid as a joint venture, each person submitting the bid shall be subject to this section with respect to his or her individual licensure. (d) `Phis section shall not affect the right or ability of a licensed architect, land surveyor, or registered professional engineer to form joint ventures with licensed contractor to render services within the scope of their respective practices, (e) Unless one of the foregoing exceptions applies, a bid submitted to a public agency by a contractor who is not licensed in accordance with this chapter shall be considered non-responsive and shall be rejected by the public agency. Unless one of the foregoing exceptions applies, a local public agency shall, before awarding a contract or issuing a purchase order, verify that the contractor was properly licensed when the contractor submitted the bid. Notwithstanding any other provision of law, unless one of the foregoing exceptions applies, the registrar may issue a citation to any public officer or employee of a public entity who knowingly awards a contract or issues a purchase order to a contractor who is not licensed pursuant to this P-6 80876.0001\180041Ov2.doc 91 chapter. "rhe amount of civil penalties, appeal, and finality of such citations shall be subject to Sections 7028.7 to 7028.13 inclusive. Any contract awarder{ to, or any purchase order issued to, a contractor who is not licensed pursuant to this chapter is void. (1) Any compliance or noncompliance with subdivision (e) of this section, as added by Chapter 863 of the Statutes of 1989, sliall not invalidate any contract or bid awarded by a public agency during which time that subdivision was in effect. (g) A public employee or officer shall not be subject to a citation pursuant to this section if the public employee, officer, or employing agency made an inquiry to the board for the purposes of verifying the license status of any person or contractor and the beard failed to respond to the inquiry within three business days. For purposes of this section, a telephone response by the board sliall be deemed sufficient. Public Contract Corle 20103.5: In all contracts subject to this part where federal fiends are involved, no bid submitted shall be invalidated by the failure of the bidder to be licensed in accordance with the laws of this state. However, at the time the contract is awarded, the contractor shall be properly licensed in accordance with the laws of this state. The first payment for work or material under any contract shall not be made unless and until the Registrar of Contractors verifies to the agency that the records of the Contractor's State License Board indicate that the contractor was properly licensed at the tine the contract was awarded. Any bidder or contractor not so licensed shall be subject to all legal penalties imposed by law including, but not limited to, any appropriate disciplinary action by the Contractor's State License Board. The agency shall include a statement to that effect in the standard form of preyualification questiomiaire and financial statement. Failure of the bidder to obtain proper and adequate licensing for an award of a contract shall constitute a failure to execute the contract and shall result in the forfeiture of the security of the bidder. License No.: 860266 Class: C-33 Expiration Date: 6/30/2015 Date: 4/9/15 Signature:.___ P-7 R6876,000I N180041 M.doc 22 "NOT APPLICABLE DESIGNATION OF SUBCONTRACTORS [Public Contract Code Section 4104] List all Subcontractors who will perform Work or labor or render service to the Contractor in or about the construction of the Work or improvement, or a Subcontractor licensed by the State of California who, under subcontract to the Contractor, specially fabricates and installs a portion of the Work or improvement according to detailed drawings contained in the Plans and Specifications, in an amount in excess of one-half percent (0.5%) of the Contractor's total Bid or, in the case of bids or offers for the construction of streets or highways, including bridges, in excess of one-half percent (0.5%) of the Contractor's total Bid or $10,000, whichever is greater. If all Subcontractors do not fit on this page, attach another page listing all information for all other Subcontractors. Name under which Subcontractor is Licensed and Registered CSLB 'License Number(s) and Class(es) j DIR Contractor Registration Number Address and Phone Number Type of Work (e.g., Electrical) j Percentage of Total Bid (e.g.. 10%)] i i I i *'SNOT APPLICABLE fV ' The percentage of the total Bid shall represent the "portion of the work" for the purposes of Public Contract Code Section 4104(b). W P -S R6976-0001\180041 Ovldoc Bidder's Name Industrial Coatings & Fireproofing Inc. *Information is for North American Coatings LLC & Subsidiaries. Industrial Coatings & Fireproofing Inc. is a wholly owned subsidiary of North American Coatings. The above information was compiled from the records that are available to me at this time and l declare under penalty of perjury that the information is true and accurate within the limitations of those records. Signature: Title: VicePresident Date: 4/9/11 R6S76.4001\130041 Ov2.doc Signature: J ) � Title: ESH Irepre-entVve Date' 4!912015 • Current Year 2014 2013 2012 2011 2010 Total of Record � Number of contracts 111 224 188 179 227 202 1,131 Total dollar amount of contracts (in thousands of dollars) 522,747 $46.417 $51,246 553,891 $39,601 537,279 i $251,181 Number of fatalities 1 0 0 0 0 0 0 0 I Number of lost workday cases 0 1 0 2 0 0 3 Number of Iost workday cases E involving permanent transfer to another job or termination 0 0 0 0 0 0 0 of employment a *Information is for North American Coatings LLC & Subsidiaries. Industrial Coatings & Fireproofing Inc. is a wholly owned subsidiary of North American Coatings. The above information was compiled from the records that are available to me at this time and l declare under penalty of perjury that the information is true and accurate within the limitations of those records. Signature: Title: VicePresident Date: 4/9/11 R6S76.4001\130041 Ov2.doc Signature: J ) � Title: ESH Irepre-entVve Date' 4!912015 • 131D BOND KNOW ALL PERSONS BY THESE PRESENTS that; WHEREAS [lie _ City of Rancho Palos Verdes _ ("Public Agency"), has issued an invitation for bids for the work described as follows: MCCARRELL CANYON PIPE RELINING PROJECT (Project xxxxxx) WHEREAS Industrial Coatings & Fireproofing, Inc. 1398 E. 29th Street, Signal Hill, CA 90755 (Name and address of Bidder) ("Principal"), desires to submit a bid to Public Agency for the work, WHEREAS, bidders are required under the provisions of the California Public Contract Code to furnish a form of bidder's security with their bid, NOW, THEREFORE, we, the undersigned Principal, and Atlantic Specialty Insurance Company 150 Royall Street, Canton MA 02021-1030 (Nance and address of Surety) ("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the Public Agency in the penal sum of Ten Percent of Amount Bid Dollars ($ 10% ), being not less than ten percent (10%) of the total bid price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal is awarded a contract for the work by the Public Agency and, within the time and in the manner required by the bidding specifications, enters into the written form of contract included with bidding specifications, furnishes the required bonds, one to guarantee faithful performance and the other to guarantee payment for labor- and materials, and fiunishes the required insurance coverage, then this obligation sliall become mill and void; otherwise, it shall be and remain in full force and effect. In case suit is brought upon this bond, Surety further agrees to pay all court costs incurred by the Public Agency in the suit and reasonable attorneys' fees in an amount fixed by the court. Surety hereby waives the provisions of California Civil Code 2845, IN WITNESS WHEREOF, this instrument has been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body. Dated; April 9, 2015 "Principal" "Surety" Industrial Coatings & Fireproofing, Inc. Atlantic Specialty Insurance Company P-10 R6876-0001 \1 8004 100,doe 25 By: By: Its: W... -- By: (Seal) 4A. W4 "_1-- Its: Ila Delman, Attorney-in-fact Its: (Seal) Note: This bond must be elated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached, P-11 R6876.0001\1 80041 Ov2.dm 26 ACKNOWLEDGEMENT OF SURETY STATE OF ILLINOIS COUNTY OF COOK On this 9t" day of April, 2015, before me personally came Ila Delman to me known, who being by so duly sworn, did depose and say: that he/she is Attorney -In -Fact of Atlantic Specialty Insurance Company The Corporation described in and which executed the foregoing instrument; that he/she knows the seal of said Corporation; that the seal affixed by authority granted to him/her in accordance with By - Laws of the said Corporation, and that he/she signed his/her name thereto by like authority. OFFICIAL SEAL KIMBERLY BRAGG NOTARY PUBLIC, STATE OF ILLINOIS MY COMMISSION EXPIRES OWN 7 No ary Pub ' , Kimbe 27 WOO' One Beacon INSURANCE GROUP power of Attorney SuretyBond No: Bid Bond Principal: Industrial Coatings & Fireproofing, Inc, Obligee: City of Rancho Palos Verdes KNOW ALL MEN BY TIJESE PRESENTS, that ATLANTIC SPECIALTY INSURANCE COMPANY, a New York corporation with its principal office in Minnetonka, Minnesota, does bereby constitute and appoint: Ila Delman each individually if there be more than one named, its true and lawful Attomey-in -Fact, to make, execute, seal and deliver, for and on its behalf as surety, any and all bonds, recognizances, contracts of iodernity, and all other writings obligatory in the nature thereof; provided that no bond or undertaking executed under this authority shall exceed in amount the sum of: fifty million dollars (550,000,000) and the execution of such bonds, recognizanccs, contracts of indemnity, and all other writings obligatory in the nature thereof in pursuance of these presents, shall be as binding upon said Company as if they had been fully signed by an authorized officer ofthe Company and sealed with the Company seat. This Power of Attomey is made and executed by authority of the following resolutions adopted by the Board of Directors of ATLANTIC SPECIALTY INSURANCE COMPANY on the twenty-fifth day of September, 2012: Resolved: That the President, any Senior Vice President or Vice -President (each an "Authorized Officer') may execute for and in behalf of the Company any and all bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof, and affix the seal of the Company thereto; and that the Authorized Officer may appoint and authorize an Attomey-in-Fact to execute on behalf of the Company any and all such instruments and to affix the Company seal thereto; and that the Authorized Officer may at any time remove any such Attorney -in -Fact and revoke all power and authority given to any such Attorney -in - Fact. Resolved: That the Attomey-in-Fact maybe given full power and authority to execute for and in the name and on behalf of the Company any and all bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof, and any such instrument executed by any such Attomey-in-Fact shall be as binding upon the Company as if sigued and scaled by an Authorized Officer and, further, the Attomey-in-Fact is hereby authorized to verify any affidavit required to be attached to bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof. This power of attomey is signed and sealed by facsimile under the authority of the following Resolution adopted by the Board of Directors of ATLANTIC SPECIALTY INSURANCE COMPANY on the twenty-fifth day of September, 2012: Resolved: That the signature of an Authorized Officer, the signature of the Secretary or the Assistant Secretary, and the Company seal maybe affixed by facsimile to any power of attorney or to any certificate relating thereto appointing an Attomey-in-Fact for purposes only of executing and scaling any bond, undertaking, recognizance or other written obligation in the nature thereof, and any such signature and seal where so used, being hereby adopted by the Company as the original signature of such officer and the original seal of the Company, to be valid and binding upon the Company with the same force and effect as though manually affixed. IN WITNESS WHEREOF, ATLANTIC SPECIALTY INSURANCE COMPANY has caused these presents to be signed by an Authorized Officer and the seal ofthe Company to be affixed this eighth day of December, 2014. co °SEAL m� �' 1986 : Y y$ B STATE OF MINNESOTA �Vi ::., -W -to?`as"� +.. �d N Paul J. Brehm, Senior Vice President •••• .. N HFNNIPEN COUNTY *, wNO On this eighth day of December, 2014, before me personalty came Paul J. Brehm, Senior Vice President of ATLANTIC SPECIALTY INSURANCE COMPANY, tome personally known to be the individual and officer described in and who executed the preceding instrument, and he acknowledged the execution of the same, and being by me duly swom, that be is the said officer of the Company aforesaid, and that the seal affixed to the preceding instrument is the seal of said Company and that the said seat and the signature as such officer was duly affixed and subscribed to the said instrument by the authority and at the direction of the Company. j/a "k�*i� SA LESNA V. S. BEEK$ i Notary Public jt� V S, - State of Minnesota My Commission Expires January 31, 2020 NotaryPublic I, the undersigoed, Assistant Secretary ofATLANTIC SPECIALTY INSURANCE COMPANY, a New York Corporation, do hereby certify that the foregoing power of attorney is in full force and has not been revoked, and the resolutions set forth above are now in force. Signed and scaled. Dated 1 St day of April 2015 W• a°tyV�Gpti�ORgjFn`g �bf SEAL. truer �" . ri: 19ss for `✓ �4A�1 Y��p�'taa�o James G. Jordan, Assistant Secretary W• NONCOLLUSION DECLARATION TO BE EXECUTED BY BIDDER AND SUBMITTED WITH BID [Public Contract Code § 7106] State of California County of Los Angeles ) ss. City of Signal Hill ) The undersigned declares; Industrial Coatings & 1 am the Vice President of Fireproofing Inc. , the party making the foregoing bid. The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham. The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain fi-oln bidding. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true. The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such pill -pose. Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that lie or she has full power to execute, and does execute, this declaration on behalf of the bidder. 1 declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on 4/9/2015 [date], at Signal Hill [City], California [stat Signature Subscribed and sworn to before me oil (Notary Seal) Signature ycr"�� Notary Pub is tUtt?U5BA R pAR'fE Commission # 1976051 Notary Public - Calftmia Los Anpetes County M Comm. t:x ices Jun 9, 2016 P-12 R6876.0001\180041M Am 29 CITY OF RANCHO PALOS VERDES PROFESSIONAL/TECHNICAL SERVICES AGREEMENT THIS AGREEMENT ("Agreement") is made and entered into this 21st day of April, 2015, by and between the City of Rancho Palos Verdes (hereinafter referred to as the "CITY") and West Coast Coating Consultants, LLC (hereafter referred to as "CONSULTANT"). IN CONSIDERATION of the covenants hereinafter set forth, the parties hereto agree as follows: ARTICLE 1 SCOPE OF SERVICES 1.1 Project Description The Project is described as follows: McCarrell Canyon Pipe Relining Project - In general, the work comprises abrasive blasting the remaining" lining from the steel pipe to an acceptable preparation, including collection and disposal of generated debris, and re -line the pipe with a 30 mil to 80 mil specified coating. 1.2 Description of Services CONSULTANT shall: Provide inspection and construction support services for the McCarroll Canyon Pipe Relining Project, as described in the CONSULTANT's Proposal, which is attached hereto as Exhibit "A" and incorporated herein by this reference. In the event of any conflict between the terms of this Agreement and incorporated documents, the terms of this Agreement shall control. 1.3 Schedule of Work Upon receipt of written Notice to Proceed from the CITY, CONSULTANT shall perform with due diligence the services requested by the CITY. Time is of the essence in this Agreement. CONSULTANT shall not be responsible for delay, nor shall CONSULTANT be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of CITY to furnish timely information or to approve or disapprove CONSULTANT's work promptly, or delay or faulty performance by CITY, other consultants/contractors, or governmental agencies, or any other delays beyond CONSULTANT's control or without CONSULTANT's fault. 2.1 Fee ARTICLE 2 COMPENSATION Page 1 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services G • CITY agrees to compensate CONSULTANT an amount not to exceed thirty one thousand five hundred dollars ($31,500) for services as described in Article 1. 2.2 Payment Address All payments due CONSULTANT shall be paid to: West Coast Coating Consultants 1563 Solano Ave #452 Berkeley, CA 94707 2.3 Terms of Compensation CONSULTANT shall submit monthly invoices for the labor and materials for work completed in the previous month. CITY agrees to authorize payment for all undisputed invoice amounts within thirty (30) days of receipt of each invoice. CITY agrees to use its best efforts to notify CONSULTANT of any disputed invoice amounts or claimed completion percentages within ten (10) days of the receipt of each invoice. However, CITY's failure to timely notify CONSULTANT of a disputed amount or claimed completion percentage shall not be deemed a waiver of CITY's right to challenge such amount or percentage. Additionally, in the event CITY fails to pay any undisputed amounts due CONSULTANT within forty-five (45) days after invoices are received by CITY then CITY agrees that CONSULTANT shall have the right to consider said default a total breach of this Agreement and be terminated by CONSULTANT without liability to CONSULTANT upon ten (10) working days advance written notice. 2.4 Additional Services CITY may request additional specified work under this Agreement. All such work must be authorized in writing by the CITY's Director of Public Works prior to commencement. CONSULTANT shall perform such services, and CITY shall pay for such additional services in accordance with CONSULTANT's Schedule of Hourly Rates, which is within Exhibit "A." The schedule of hourly rates shall be in effect through the end of this Agreement. 2.5 Term of Agreement This Agreement shall commence on April 21, 2015 and shall terminate on August 31, 2015 unless sooner terminated pursuant to Article 4 of this Agreement. ARTICLE 3 INDEMNIFICATION AND INSURANCE Page 2 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 31 3.1 Indemnification To the maximum extent permitted by law, CONSULTANT shall defend, indemnify, and hold the CITY, its officials, officers, employees, agents and independent contractors serving in the role of CITY officials, and volunteers (collectively "Indemnitees") free and harmless from any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death (collectively "Claims"), in any manner arising out of or incident to any acts or omissions of CONSULTANT, its officials, officers, employees or agents in connection with the performance of this Agreement, including without limitation the payment of all consequential damages, attorneys' fees, and other related costs and expenses, except for such Claims arising out of the sole negligence or willful misconduct of the Indemnitees. With respect to any and all such Claims, CONSULTANT shall defend Indemnitees at CONSULTANT's own cost, expense, and risk and shall pay and satisfy any judgment, award, or decree that may be rendered against Indemnitees. CONSULTANT shall reimburse Indemnitees for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. CONSULTANT's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by CONSULTANT or Indemnitees. All duties of CONSULTANT under this Section shall survive termination of this Agreement. 3.2 General Liability CONSULTANT shall at all times during the term of the Agreement carry, maintain, and keep in full force and effect, a policy or policies of Commercial General Liability Insurance, with minimum limits of one million dollars ($1,000,000) for each occurrence and two million dollars ($2,000,000) general aggregate for bodily injury, death, loss or property damage for products or completed operations and any and all other activities undertaken by CONSULTANT in the performance of this Agreement. Said policy or policies shall be issued by an insurer admitted to do business in the State of California and rated in A.M. Best's Insurance Guide with a rating of A:VII or better. 3.3 Professional Liability CONSULTANT shall at all times during the term of this Agreement, carry, maintain, and keep in full force and effect a policy or policies of professional liability insurance with a minimum limit of one million dollars ($1,000,000) per claim and aggregate for errors and/or omissions of CONSULTANT in the performance of this Agreement. Said policy or policies shall be issued by an insurer admitted to do business in the State of California and rated in Best's Insurance Guide with a rating of A:VII or better. If a "claims made" policy is provided, such policy shall be maintained in effect from the date of performance of work or services on the CITY's behalf until three (3) years after the date of work or services are accepted as completed. Coverage for the post - completion period may be provided by renewal or replacement of the policy for each of Page 3 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 32 the three (3) years or by a three-year extended reporting period endorsement, which reinstates all limits for the extended reporting period. If any such policy and/or policies have a retroactive date, that date shall be no later than the date of first performance of work or services on behalf of the CITY. Renewal or replacement policies shall not allow for any advancement of such retroactive date. 3.4 Automobile Liability CONSULTANT shall at all times during the term of this Agreement obtain, maintain, and keep in full force and effect, a policy or policies of Automobile Liability Insurance, with minimum of one million dollars ($1,000,000) per claim and occurrence and two million dollars ($2,000,000) in the aggregate for bodily injuries or death of one person and five hundred thousand dollars ($500,000) for property damage arising from one incident. 3.5 Worker's Compensation CONSULTANT agrees to maintain in force at all times during the performance of work under this Agreement worker's compensation insurance as required by the law. CONSULTANT shall require any subcontractor similarly to provide such compensation insurance for their respective employees. 3.6 Notice of Cancellation (a) All insurance policies shall provide that the insurance coverage shall not be cancelled or modified by the insurance carrier without thirty (30) days prior written notice to CITY, or ten (10) days notice if cancellation is due to nonpayment of premium. Additionally, CONSULTANT shall provide immediate notice to the City if it receives a cancellation or policy revision notice from the insurer. (b) CONSULTANT agrees that it will not cancel or reduce any required insurance coverage. CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect, CITY may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay, at CONSULTANT's expense, the premium thereon. 3.7 Entire Policy and Certificate of Insurance At all times during the term of this Agreement, CONSULTANT shall maintain on file with the CITY Clerk both a copy of the entire policy and a certificate of insurance showing that the aforesaid policies are in effect in the required amounts. The commercial general liability policy shall contain endorsements naming the CITY, its officers, agents and employees as additional insureds. 3.8 Primary Coverage Page 4 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 33 The insurance provided by CONSULTANT shall be primary to any coverage available to CITY. The insurance policies (other than workers compensation and professional liability) shall include provisions for waiver of subrogation. ARTICLE 4 TERMINATION 4.1 Termination of Agreement (a) This Agreement may be terminated at any time, with or without cause, by the CITY upon thirty (30) days prior written notice or by CONSULTANT upon ninety (90) days prior written notice. Notice shall be deemed served if completed in compliance with Section 6.14. (b) In the event of termination or cancellation of this Agreement by CONSULTANT or CITY, due to no fault or failure of performance by CONSULTANT, CONSULTANT shall be paid compensation for all services performed by CONSULTANT, in an amount to be determined as follows: for work satisfactorily done in accordance with all of the terms and provisions of this Agreement as determined by the CITY, CONSULTANT shall be paid an amount equal to the percentage of services performed prior to the effective date of termination or cancellation in accordance with the work items; provided, in no event shall the amount of money paid under the foregoing provisions of this paragraph exceed the amount which would have been paid to CONSULTANT for the full performance of the services described in this Agreement. ARTICLE 5 OWNERSHIP OF DOCUMENTS 5.1 Ownership of Documents and Work Product All final documents, plans, specifications, reports, information, data, exhibits, photographs, images, video files and media created or developed by CONSULTANT pursuant to this Agreement ("Written Products") shall be and remain the property of the CITY without restriction or limitation upon its use, duplication or dissemination by the CITY. All Written Products shall be considered "works made for hire," and all Written Products and any and all intellectual property rights arising from their creation, including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of the CITY without restriction or limitation upon their use, duplication or dissemination by the CITY. CONSULTANT shall not obtain or attempt to obtain copyright protection as to any Written Products. CONSULTANT hereby assigns to the CITY all ownership and any and all intellectual property rights to the Written Products that are not otherwise vested in the CITY pursuant to the paragraph directly above this one. Page 5 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 34 CONSULTANT warrants and represents that it has secured all necessary licenses, consents or approvals to use any instrumentality, thing or component as to which any intellectual property right exists, including computer software, used in the rendering of the services and the production of all Written Products produced under this Agreement, and that the CITY has full legal title to and the right to reproduce the Written Products. CONSULTANT shall defend, indemnify and hold the CITY, and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of CITY officials, harmless from any loss, claim or liability in any way related to a claim that CITY's use of any of the Written Products is violating federal, state or local laws, or any contractual provisions, or any laws relating to trade names, licenses, franchises, copyrights, patents or other means of protecting intellectual property rights and/or interests in products or inventions. CONSULTANT shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked documents, materials, equipment, devices or processes in connection with its provision of the services and Written Products produced under this Agreement. In the event the use of any of the Written Products or other deliverables hereunder by the CITY is held to constitute an infringement and the use of any of the same is enjoined, CONSULTANT, at its expense, shall: (a) secure for CITY the right to continue using the Written Products and other deliverables by suspension of any injunction, or by procuring a license or licenses for CITY; or (b) modify the Written Products and other deliverables so that they become non -infringing while remaining in compliance with the requirements of this Agreement. This covenant shall survive the termination of this Agreement. Upon termination, abandonment or suspension of the Project, the CONSULTANT shall deliver to the CITY all Written Products and other deliverables related to the Project without additional cost or expense to the CITY. If CONSULTANT prepares a document on a computer, CONSULTANT shall provide CITY with said document both in a printed format and in an electronic format that is acceptable to the CITY. ARTICLE 6 GENERAL PROVISIONS 6.1 Representation The CITY representative shall be the Director of Public Works or his or her designee, and CONSULTANT shall notify CITY of CONSULTANT's designated representative. These individuals shall be the primary contact persons for the parties regarding performance of this Agreement. 6.2 Fair Employment Practices/Equal Opportunity Acts In the performance of this Agreement, CONSULTANT shall comply with all applicable provisions of the California Fair Employment Practices Act (California Government Code Sections 12940-48), the applicable equal employment provisions of Page 6 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 35 the Civil Rights Act of 1964 (42 U.S.C. 200e-217), and the Americans with Disabilities Act of 1990 (42 U.S.C. § 11200, et seg.). 6.3 Personnel CONSULTANT represents that it has, or shall secure at its own expense, all personnel required to perform CONSULTANT's services under this Agreement. Any person who performs engineering services pursuant to this Agreement shall be licensed as a Civil Engineer by the State of California and in good standing. CONSULTANT shall make reasonable efforts to maintain the continuity of CONSULTANT's staff who are assigned to perform the services hereunder and shall obtain the approval of the Director of Public Works of all proposed staff members who will perform such services. CONSULTANT may associate with or employ associates or subconsultants in the performance of its services under this Agreement, but at all times shall CONSULTANT be responsible for its associates or subconsultants' services. 6.4 CONSULTANT's Representations CONSULTANT represents, covenants and agrees that: a) CONSULTANT is licensed, qualified, and capable of furnishing the labor, materials, and expertise necessary to perform the services in accordance with the terms and conditions set forth in this Agreement; b) there are no obligations, commitments, or impediments of any kind that will limit or prevent CONSULTANT's full performance under this Agreement; c) to the extent required by the standard of practice, CONSULTANT has investigated and considered the scope of services performed, has carefully considered how the services should be performed, and understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. 6.5 Conflicts of Interest CONSULTANT agrees not to accept any employment or representation during the term of this Agreement or within twelve (12) months after completion of the work under this Agreement which is or may likely make CONSULTANT "financially interested" (as provided in California Government Code Sections 1090 and 87100) in any decisions made by CITY on any matter in connection with which CONSULTANT has been retained pursuant to this Agreement. 6.6 Legal Action (a) Should either party to this Agreement bring legal action against the other, the validity, interpretation, and performance of this Agreement shall be controlled by and construed under the laws of the State of California, excluding California's choice of law rules. Venue for any such action relating to this Agreement shall be in the Los Angeles County Superior Court. Page 7 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 36 (b) If any legal action or other proceeding, including action for declaratory relief, is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default or misrepresentation in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees, experts' fees, and other costs, in addition to any other relief to which the party may be entitled. (c) Should any legal action about a project between CITY and a party other than CONSULTANT require the testimony of CONSULTANT when there is no allegation that CONSULTANT was negligent, CITY shall compensate CONSULTANT for its testimony and preparation to testify at the hourly rates in effect at the time of such testimony. 6.7 Assignment Neither this Agreement nor any part thereof shall be assigned by CONSULTANT without the prior written consent of the CITY. Any such purported assignment without written consent shall be null and void, and CONSULTANT shall hold harmless, defend and indemnify the CITY and its officers, officials, employees, agents and representatives with respect to any claim, demand or action arising from any unauthorized assignment. Notwithstanding the above, CONSULTANT may use the services of persons and entities not in CONSULTANT's direct employ, when it is appropriate and customary to do so. Such persons and entities include, but are not necessarily limited to, surveyors, specialized consultants, and testing laboratories. CONSULTANT's use of subconsultants for additional services shall not be unreasonably restricted by the CITY provided CONSULTANT notifies the CITY in advance. 6.8 Independent Contractor CONSULTANT is and shall at all times remain, as to the CITY, a wholly independent contractor. Neither the CITY nor any of its agents shall have control over the conduct of CONSULTANT or any of the CONSULTANT's employees, except as herein set forth, and CONSULTANT is free to dispose of all portions of its time and activities which it is not obligated to devote to the CITY in such a manner and to such persons, firms, or corporations as the CONSULTANT wishes except as expressly provided in this Agreement. CONSULTANT shall have no power to incur any debt, obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an agent. CONSULTANT shall not, at any time or in any manner, represent that it or any of its agents, servants or employees, are in any manner agents, servants or employees of CITY. CONSULTANT agrees to pay all required taxes on amounts paid to CONSULTANT under this Agreement, and to indemnify and hold the CITY harmless from any and all taxes, assessments, penalties, and interest asserted against the CITY by reason of the independent contractor relationship created by this Agreement. CONSULTANT shall fully comply with the workers' compensation law regarding CONSULTANT and its employees. Page 8 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 37 CONSULTANT further agrees to indemnify and hold the CITY harmless from any failure of CONSULTANT to comply with applicable workers' compensation laws. The CITY shall have the right to offset against the amount of any fees due to CONSULTANT under this Agreement any amount due to the CITY from CONSULTANT as a result of its failure to promptly pay to the CITY any reimbursement or indemnification arising under this Article. 6.9 Titles The titles used in this Agreement are for general reference only and are not part of the Agreement. 6.10 Entire Agreement This Agreement, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between CITY and CONSULTANT and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified or amended, or provisions or breach may be waived, only by subsequent written agreement signed by both parties. 6.11 Construction In the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein, the interpretation of this Agreement shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted the Agreement or who drafted that portion of the Agreement. 6.12 Non -Waiver of Terms, Rights and Remedies Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by the CITY of any payment to CONSULTANT constitute or be construed as a waiver by the CITY of any breach of covenant, or any default which may then exist on the part of CONSULTANT, and the making of any such payment by the CITY shall in no way impair or prejudice any right or remedy available to the CITY with regard to such breach or default. 6.13 Severability If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 6.14 Notice Page 9 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services Except as otherwise required by law, any notice or other communication authorized or required by this Agreement shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during CONSULTANT's or CITY's regular business hours or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses listed below, or at such other address as one party may notify the other: To CITY: Director of Public Works City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 To CONSULTANT: Greg Whiting, President West Coast Coating Consultants 1563 Solano Ave #452 Berkeley, CA 94707 [Signatures on next page.] Page 10 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 39 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. Dated: Dated: ATTEST: City Clerk R6876-0001\1347726v1.doc West Coast Coating Consultants, LLC ("CONSULTANT') By: Printed Name: Title: By: Printed Name: Title: CITY OF RANCHO PALOS VERDES ("CITY") M Mayor APPROVED AS TO FORM: go City Attorney Page 11 of 11 Agreement for Professional/Technical Services M Exhibit "A": Consultant's Proposal, including Schedule of Hourly Rates Exhibit "A" R6876-0001\1347726v1.doc 41 WEST COAST COATING CONSULTANTS IDUSTRIAL, MARINE COATING INSPECTION PHONE: 415-244-6429 FAILURE ANALYSIS, COATING SURVEYS FAX: 510-528-5416 March 25, 2015 Email. AndyW@prpvca.gov Mr. Andy Winji Ranchos Palos Verdes Public Works Department 30940 Hawthorne Blvd Rancho Palos Verdes, CA 90275 Subject: Proposal for Construction Support and Inspection Services: McCarrell Canyon Pipe Relining Project Dear Mr. Winji: As you requested, West Coast Coating Consultants (WCCC) is pleased to provide this proposal for providing construction support and inspection services regarding the upcoming McCarrel Canyon Pipe Relining Project. We hope you find the attached proposal responsive to your needs. WCCC is eager to provide these services To the City of Ranchos Palos Verdes. We appreciate your careful consideration of our proposal and look forward to a positive evaluation. I will contact you in a few days to confirm receipt of this proposal and answer any of your questions. However, feel free to contact me immediately at 415-244-6429, or e-mail at gregwcec@gmail.coin if you require any additional information. Sincerely, West Coast Coating Consultants LLC Greg Whiting President 42 West Coast Coating Consultants LLC SCOPE OF SERVICES The specific Scope of Services to be undertaken by WCCC to implement the Project Approach outlined above is as follows: Task 1: Review of Specifications WCCC will review the specifications that have been prepared for the City and prepare a letter report that provides recommendations for modification. If only one lining is included in the specification, WCCC will. provide at least two additional equivalent linings. In addition WCCC will provide recommendations for quality control testing during the lining application. Specific tests and inspections will be provided along with the applicable industry standards for performing those tests. Task 2: Pre -Construction Assistance If requested by the City, WCCC will provide pre -construction support on an as -needed basis. WCCC will participate in the pre-bid meeting, answer any technical questions relating to the project, review all submitted bids and recommend the lowest qualified responsive bidder. All questions raised during or directly after the meeting will be documented and answered in writing. The responses will be submitted to the City for distribution to all bidders. Task 3: Construction Support WCCC will review submittals and requests from the Contractor for approval, such as subcontractors, materials, supplies, equipment and quality control plan and make recommendations to the City. If alternative products are submitted WCCC will evaluate those alternatives for acceptability and compliance with the specification. In addition, WCCC will provide technical support throughout the project in order to address any technical issues that arise. Task 4: Inspection Services Task 4.1 Pre -Job Proiect Set -Up - Observation of the construction process starts with an initial review of the project specification by the WCCC Project Manager including the contractor's submittals, and other documents relevant to the specified work. Based upon the results of this review, the Project Manager will establish project -specific inspection observation criteria for the inspector to follow. Task 4.2 Daily Inspection of Surface Preparation and Application - A National Association of Corrosion Engineers (NACE) Level 3 (peer) Certified Coatings Inspector will be assigned to the project full-time during key periods of active surface preparation or application. 43 West Coast Coating Consultants LLC Specific Inspection duties include: • Performing hold -point quality assurance observations of surface preparation and coating application. • Completing Daily Inspection Reports (IRs) documenting measurements and observations made during the day, • Submitting copies of IRs to the Contractor so that any required in - process corrections can be made, and to the City and WCCC's Project Manager so that project status can be monitored. • Reporting non -conformances with the project specification to the Contractor, the City and WCCC's Project Manager to facilitate acceptable resolution. • Co-ordination with the City's inspector. • Providing recommendations for progress payments • Recommending acceptance of the completed painting project. WCCC's Project Manager will review the IRs prepared by the Inspector on a weekly basis and compare results to the requirements of the specification. Any deviations or discrepancies will be brought to the attention of the Inspector so that timely adjustments can be made. Task 4.3 Project Close -Out - A final project report is prepared to summarize the requirements of the specification and the quality of the work that was performed and witnessed by WCCC. This report will be submitted following completion of the project. The final project report summarizes pertinent portions of the project including ambient conditions, the type and quality of the surface preparation and application achieved, materials and dry film thickness summaries, inspection and monitoring equipment used, specialized testing required in the scope of services, and deviations from the specification. PROJECT SCHEDULE WCCC is prepared to initiate work on the referenced scope of services upon establishment of some form of contract. WCCC understands that the bid date is April 9, 2015. WCCC can support that date. West Coast Coating Consultants LLC COST OF SERVICES WCCC invoices for assessment services on a time and material basis. However, for planning purposes, the cost to provide these services is estimated below. WCCC will invoice only for actual services provided and expenses incurred. The following in an estimate of the costs associated with this project. Task 1: Review of Specifications Coatings Consultant................ 8 hours @ $150/hour................... $ 1,200.00 Task 2: Pre -Construction Assistance Coatings Consultant................ 14 hours @ $150/hour.................. $ 2,1.00.00 Total Cost of Construction Assistance ............................. $ 3,600.00 Task 3: Construction Support Coatings Consultant ................ 8 hours @ $150/hour.................... $ 1,200.00 Task 4: Inspection Services Hourly Rates Regular Time Hourly Rate = $75.00 per hour Overtime Hourly Rate = $90.00 per hour Estimated inspection cost for 45 working days at 8 hours per day = $27,000.00 Rates are all inclusive with no additional costs. 8 Hour daily minimum. QUALIFICATIONS AND EXPERIENCE West Coast Coating Consultants, LLC has offices in Berkeley California, Northridge, California and Olympia, Washington. WCCC employs NACE Certified Coating Inspectors who have extensive practical experience in the industrial coating industry. Owner, Greg A. Whiting has over 28 years of coatings and more than 16 years of experience conducting industrial coating inspection as a NACE Certified Inspector and a Quality Assurance/Quality Control Supervisor. WCCC's staff includes ten NACE Certified Coating Inspectors — some of whom have more than 35 years industrial coating experience and more than 20 years experience as a NACE Certified Inspector. Our inspectors are qualified to conduct all tests in the ASTM Protective Coating Inspection Standards Guide. In addition our inspectors are excellent communicators who forge effective working relationships with clients and contractors alike. WCCC also employs a chemical/corrosion engineer who has over thirty years of coating and corrosion experience. The WCCC Engineer is a NACE Certified Coating Inspector and an SSPC Certified Coating Specialist. 45 CITY OF RANCHO PALOS VERDES PROFESSIONAL/TECHNICAL SERVICES AGREEMENT THIS AGREEMENT ("Agreement") is made and entered into this 21st day of April, 2015, by and between the City of Rancho Palos Verdes (hereinafter referred to as the "CITY") and KOA Corporation (hereafter referred to as "CONSULTANT"). IN CONSIDERATION of the covenants hereinafter set forth, the parties hereto agree as follows: ARTICLE 1 SCOPE OF SERVICES 1.1 Project Description The Project is described as follows: McCarrell Canyon Pipe Relining Project - In general, the work comprises abrasive blasting the remaining" lining from the steel pipe to an acceptable preparation, including collection and disposal of generated debris, and re -line the pipe with a 30 mil to 80 mil specified coating. 1.2 Description of Services CONSULTANT shall: Provide construction management and construction support services for the McCarrell Canyon Pipe Relining Project, as described in the CONSULTANT's Proposal, which is attached hereto as Exhibit "A" and incorporated herein by this reference. In the event of any conflict between the terms of this Agreement and incorporated documents, the terms of this Agreement shall control. 1.3 Schedule of Work Upon receipt of written Notice to Proceed from the CITY, CONSULTANT shall perform with due diligence the services requested by the CITY. Time is of the essence in this Agreement. CONSULTANT shall not be responsible for delay, nor shall CONSULTANT be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of CITY to furnish timely information or to approve or disapprove CONSULTANT's work promptly, or delay or faulty performance by CITY, other consultants/contractors, or governmental agencies, or any other delays beyond CONSULTANT's control or without CONSULTANT's fault. 2.1 Fee ARTICLE 2 COMPENSATION Page 1 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services W CITY agrees to compensate CONSULTANT an amount of fourteen thousand dollars ($14,000) for services as described in Article 1. 2.2 Payment Address All payments due CONSULTANT shall be paid to: KOA Corporation 1411 W. 190th Street, Suite 525 Gardena, CA 90248 2.3 Terms of Compensation CONSULTANT shall submit monthly invoices for the percentage of work completed in the previous month. CITY agrees to authorize payment for all undisputed invoice amounts within thirty (30) days of receipt of each invoice. CITY agrees to use its best efforts to notify CONSULTANT of any disputed invoice amounts or claimed completion percentages within ten (10) days of the receipt of each invoice. However, CITY's failure to timely notify CONSULTANT of a disputed amount or claimed completion percentage shall not be deemed a waiver of CITY's right to challenge such amount or percentage. Additionally, in the event CITY fails to pay any undisputed amounts due CONSULTANT within forty-five (45) days after invoices are received by CITY then CITY agrees that CONSULTANT shall have the right to consider said default a total breach of this Agreement and be terminated by CONSULTANT without liability to CONSULTANT upon ten (10) working days advance written notice. 2.4 Additional Services CITY may request additional specified work under this Agreement. All such work must be authorized in writing by the CITY's Director of Public Works prior to commencement. CONSULTANT shall perform such services, and CITY shall pay for such additional services in accordance with CONSULTANT's Schedule of Hourly Rates, which is within Exhibit "A." The schedule of hourly rates shall be in effect through the end of this Agreement. 2.5 Term of Agreement This Agreement shall commence on April 21, 2015 and shall terminate on December 31, 2015 unless sooner terminated pursuant to Article 4 of this Agreement. ARTICLE 3 INDEMNIFICATION AND INSURANCE Page 2 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services M 3.1 Indemnification To the maximum extent permitted by law, CONSULTANT shall defend, indemnify, and hold the CITY, its officials, officers, employees, agents and independent contractors serving in the role of CITY officials, and volunteers (collectively "Indemnitees") free and harmless from any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death (collectively "Claims"), in any manner arising out of or incident to any acts or omissions of CONSULTANT, its officials, officers, employees or agents in connection with the performance of this Agreement, including without limitation the payment of all consequential damages, attorneys' fees, and other related costs and expenses, except for such Claims arising out of the sole negligence or willful misconduct of the Indemnitees. With respect to any and all such Claims, CONSULTANT shall defend Indemnitees at CONSULTANT's own cost, expense, and risk and shall pay and satisfy any judgment, award, or decree that may be rendered against Indemnitees. CONSULTANT shall reimburse Indemnitees for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. CONSULTANT's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by CONSULTANT or Indemnitees. All duties of CONSULTANT under this Section shall survive termination of this Agreement. 3.2 General Liability CONSULTANT shall at all times during the term of the Agreement carry, maintain, and keep in full force and effect, a policy or policies of Commercial General Liability Insurance, with minimum limits of one million dollars ($1,000,000) for each occurrence and two million dollars ($2,000,000) general aggregate for bodily injury, death, loss or property damage for products or completed operations and any and all other activities undertaken by CONSULTANT in the performance of this Agreement. Said policy or policies shall be issued by an insurer admitted to do business in the State of California and rated in A.M. Best's Insurance Guide with a rating of A:VII or better. 3.3 Professional Liability CONSULTANT shall at all times during the term of this Agreement, carry, maintain, and keep in full force and effect a policy or policies of professional liability insurance with a minimum limit of one million dollars ($1,000,000) per claim and aggregate for errors and/or omissions of CONSULTANT in the performance of this Agreement. Said policy or policies shall be issued by an insurer admitted to do business in the State of California and rated in Best's Insurance Guide with a rating of A:VII or better. If a "claims made" policy is provided, such policy shall be maintained in effect from the date of performance of work or services on the CITY's behalf until three (3) years after the date of work or services are accepted as completed. Coverage for the post - completion period may be provided by renewal or replacement of the policy for each of Page 3 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services H the three (3) years or by a three-year extended reporting period endorsement, which reinstates all limits for the extended reporting period. If any such policy and/or policies have a retroactive date, that date shall be no later than the date of first performance of work or services on behalf of the CITY. Renewal or replacement policies shall not allow for any advancement of such retroactive date. 3.4 Automobile Liability CONSULTANT shall at all times during the term of this Agreement obtain, maintain, and keep in full force and effect, a policy or policies of Automobile Liability Insurance, with minimum of one million dollars ($1,000,000) per claim and occurrence and two million dollars ($2,000,000) in the aggregate for bodily injuries or death of one person and five hundred thousand dollars ($500,000) for property damage arising from one incident. 3.5 Worker's Compensation CONSULTANT agrees to maintain in force at all times during the performance of work under this Agreement worker's compensation insurance as required by the law. CONSULTANT shall require any subcontractor similarly to provide such compensation insurance for their respective employees. 3.6 Notice of Cancellation (a) All insurance policies shall provide that the insurance coverage shall not be cancelled or modified by the insurance carrier without thirty (30) days prior written notice to CITY, or ten (10) days notice if cancellation is due to nonpayment of premium. Additionally, CONSULTANT shall provide immediate notice to the City if it receives a cancellation or policy revision notice from the insurer. (b) CONSULTANT agrees that it will not cancel or reduce any required insurance coverage. CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect, CITY may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay, at CONSULTANT's expense, the premium thereon. 3.7 Entire Policy and Certificate of Insurance At all times during the term of this Agreement, CONSULTANT shall maintain on file with the CITY Clerk both a copy of the entire policy and a certificate of insurance showing that the aforesaid policies are in effect in the required amounts. The commercial general liability policy shall contain endorsements naming the CITY, its officers, agents and employees as additional insureds. 3.8 Primary Coverage Page 4 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services The insurance provided by CONSULTANT shall be primary to any coverage available to CITY. The insurance policies (other than workers compensation and professional liability) shall include provisions for waiver of subrogation. ARTICLE 4 TERMINATION 4.1 Termination of Agreement (a) This Agreement may be terminated at any time, with or without cause, by the CITY upon thirty (30) days prior written notice or by CONSULTANT upon ninety (90) days prior written notice. Notice shall be deemed served if completed in compliance with Section 6.14. (b) In the event of termination or cancellation of this Agreement by CONSULTANT or CITY, due to no fault or failure of performance by CONSULTANT, CONSULTANT shall be paid compensation for all services performed by CONSULTANT, in an amount to be determined as follows: for work satisfactorily done in accordance with all of the terms and provisions of this Agreement as determined by the CITY, CONSULTANT shall be paid an amount equal to the percentage of services performed prior to the effective date of termination or cancellation in accordance with the work items; provided, in no event shall the amount of money paid under the foregoing provisions of this paragraph exceed the amount which would have been paid to CONSULTANT for the full performance of the services described in this Agreement. ARTICLE 5 OWNERSHIP OF DOCUMENTS 5.1 Ownership of Documents and Work Product All final documents, plans, specifications, reports, information, data, exhibits, photographs, images, video files and media created or developed by CONSULTANT pursuant to this Agreement ("Written Products") shall be and remain the property of the CITY without restriction or limitation upon its use, duplication or dissemination by the CITY. All Written Products shall be considered "works made for hire," and all Written Products and any and all intellectual property rights arising from their creation, including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of the CITY without restriction or limitation upon their use, duplication or dissemination by the CITY. CONSULTANT shall not obtain or attempt to obtain copyright protection as to any Written Products. CONSULTANT hereby assigns to the CITY all ownership and any and all intellectual property rights to the Written Products that are not otherwise vested in the CITY pursuant to the paragraph directly above this one. Page 5 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 411 CONSULTANT warrants and represents that it has secured all necessary licenses, consents or approvals to use any instrumentality, thing or component as to which any intellectual property right exists, including computer software, used in the rendering of the services and the production of all Written Products produced under this Agreement, and that the CITY has full legal title to and the right to reproduce the Written Products. CONSULTANT shall defend, indemnify and hold the CITY, and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of CITY officials, harmless from any loss, claim or liability in any way related to a claim that CITY's use of any of the Written Products is violating federal, state or local laws, or any contractual provisions, or any laws relating to trade names, licenses, franchises, copyrights, patents or other means of protecting intellectual property rights and/or interests in products or inventions. CONSULTANT shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked documents, materials, equipment, devices or processes in connection with its provision of the services and Written Products produced under this Agreement. In the event the use of any of the Written Products or other deliverables hereunder by the CITY is held to constitute an infringement and the use of any of the same is enjoined, CONSULTANT, at its expense, shall: (a) secure for CITY the right to continue using the Written Products and other deliverables by suspension of any injunction, or by procuring a license or licenses for CITY; or (b) modify the Written Products and other deliverables so that they become non -infringing while remaining in compliance with the requirements of this Agreement. This covenant shall survive the termination of this Agreement. Upon termination, abandonment or suspension of the Project, the CONSULTANT shall deliver to the CITY all Written Products and other deliverables related to the Project without additional cost or expense to the CITY. If CONSULTANT prepares a document on a computer, CONSULTANT shall provide CITY with said document both in a printed format and in an electronic format that is acceptable to the CITY. ARTICLE 6 GENERAL PROVISIONS 6.1 Representation The CITY representative shall be the Director of Public Works or his or her designee, and CONSULTANT shall notify CITY of CONSULTANT's designated representative. These individuals shall be the primary contact persons for the parties regarding performance of this Agreement. 6.2 Fair Employment Practices/Equal Opportunity Acts In the performance of this Agreement, CONSULTANT shall comply with all applicable provisions of the California Fair Employment Practices Act (California Government Code Sections 12940-48), the applicable equal employment provisions of Page 6 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 51 the Civil Rights Act of 1964 (42 U.S.C. 200e-217), and the Americans with Disabilities Act of 1990 (42 U.S.C. § 11200, et seg.). 6.3 Personnel CONSULTANT represents that it has, or shall secure at its own expense, all personnel required to perform CONSULTANT's services under this Agreement. Any person who performs engineering services pursuant to this Agreement shall be licensed as a Civil Engineer by the State of California and in good standing. CONSULTANT shall make reasonable efforts to maintain the continuity of CONSULTANT's staff who are assigned to perform the services hereunder and shall obtain the approval of the Director of Public Works of all proposed staff members who will perform such services. CONSULTANT may associate with or employ associates or subconsultants in the performance of its services under this Agreement, but at all times shall CONSULTANT be responsible for its associates or subconsultants' services. 6.4 CONSULTANT's Representations CONSULTANT represents, covenants and agrees that: a) CONSULTANT is licensed, qualified, and capable of furnishing the labor, materials, and expertise necessary to perform the services in accordance with the terms and conditions set forth in this Agreement; b) there are no obligations, commitments, or impediments of any kind that will limit or prevent CONSULTANT's full performance under this Agreement; c) to the extent required by the standard of practice, CONSULTANT has investigated and considered the scope of services performed, has carefully considered how the services should be performed, and understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. 6.5 Conflicts of Interest CONSULTANT agrees not to accept any employment or representation during the term of this Agreement or within twelve (12) months after completion of the work under this Agreement which is or may likely make CONSULTANT "financially interested" (as provided in California Government Code Sections 1090 and 87100) in any decisions made by CITY on any matter in connection with which CONSULTANT has been retained pursuant to this Agreement. 6.6 Legal Action (a) Should either party to this Agreement bring legal action against the other, the validity, interpretation, and performance of this Agreement shall be controlled by and construed under the laws of the State of California, excluding California's choice of law rules. Venue for any such action relating to this Agreement shall be in the Los Angeles County Superior Court. Page 7 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 52 (b) If any legal action or other proceeding, including action for declaratory relief, is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default or misrepresentation in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees, experts' fees, and other costs, in addition to any other relief to which the party may be entitled. (c) Should any legal action about a project between CITY and a party other than CONSULTANT require the testimony of CONSULTANT when there is no allegation that CONSULTANT was negligent, CITY shall compensate CONSULTANT for its testimony and preparation to testify at the hourly rates in effect at the time of such testimony. 6.7 Assignment Neither this Agreement nor any part thereof shall be assigned by CONSULTANT without the prior written consent of the CITY. Any such purported assignment without written consent shall be null and void, and CONSULTANT shall hold harmless, defend and indemnify the CITY and its officers, officials, employees, agents and representatives with respect to any claim, demand or action arising from any unauthorized assignment. Notwithstanding the above, CONSULTANT may use the services of persons and entities not in CONSULTANT's direct employ, when it is appropriate and customary to do so. Such persons and entities include, but are not necessarily limited to, surveyors, specialized consultants, and testing laboratories. CONSULTANT's use of subconsultants for additional services shall not be unreasonably restricted by the CITY provided CONSULTANT notifies the CITY in advance. 6.8 Independent Contractor CONSULTANT is and shall at all times remain, as to the CITY, a wholly independent contractor. Neither the CITY nor any of its agents shall have control over the conduct of CONSULTANT or any of the CONSULTANT's employees, except as herein set forth, and CONSULTANT is free to dispose of all portions of its time and activities which it is not obligated to devote to the CITY in such a manner and to such persons, firms, or corporations as the CONSULTANT wishes except as expressly provided in this Agreement. CONSULTANT shall have no power to incur any debt, obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an agent. CONSULTANT shall not, at any time or in any manner, represent that it or any of its agents, servants or employees, are in any manner agents, servants or employees of CITY. CONSULTANT agrees to pay all required taxes on amounts paid to CONSULTANT under this Agreement, and to indemnify and hold the CITY harmless from any and all taxes, assessments, penalties, and interest asserted against the CITY by reason of the independent contractor relationship created by this Agreement. CONSULTANT shall fully comply with the workers' compensation law regarding CONSULTANT and its employees. Page 8 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 53 CONSULTANT further agrees to indemnify and hold the CITY harmless from any failure of CONSULTANT to comply with applicable workers' compensation laws. The CITY shall have the right to offset against the amount of any fees due to CONSULTANT under this Agreement any amount due to the CITY from CONSULTANT as a result of its failure to promptly pay to the CITY any reimbursement or indemnification arising under this Article. 6.9 Titles The titles used in this Agreement are for general reference only and are not part of the Agreement. 6.10 Entire Agreement This Agreement, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between CITY and CONSULTANT and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified or amended, or provisions or breach may be waived, only by subsequent written agreement signed by both parties. 6.11 Construction In the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein, the interpretation of this Agreement shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted the Agreement or who drafted that portion of the Agreement. 6.12 Non -Waiver of Terms, Rights and Remedies Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by the CITY of any payment to CONSULTANT constitute or be construed as a waiver by the CITY of any breach of covenant, or any default which may then exist on the part of CONSULTANT, and the making of any such payment by the CITY shall in no way impair or prejudice any right or remedy available to the CITY with regard to such breach or default. 6.13 Severability If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 6.14 Notice Page 9 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 54 Except as otherwise required by law, any notice or other communication authorized or required by this Agreement shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during CONSULTANT'S or CITY'S regular business hours or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses listed below, or at such other address as one party may notify the other: To CITY: Director of Public Works City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 To CONSULTANT: Alan Braatvedt, Vice President 1411 W 190th Street, Suite 525 Gardena, CA 90248 [Signatures on next page.] Page 10 of 11 R6876-0001\1347726v1.doc Agreement for Professional/Technical Services 55 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. Dated: Dated: ATTEST: in City Clerk R6876-0001\1347726v1.doc KOA Corporation ("CONSULTANT') By: Printed Name: Title: By: Printed Name: Title: CITY OF RANCHO PALOS VERDES ("CITY") Mayor City Attorney Page 11 of 11 Agreement for Professional/Technical Services 56 Exhibit "A": Consultant's Proposal, including Schedule of Hourly Rates Exhibit "A" R6876-0001\1347726v1.doc 57 PKOA CORPORATION PLANNING � PAGINEER NG April 9, 2015 City of Rancho Palos Verdes Department of Public Works 30940 Hawthorne Blvd Rancho Palos Verdes, CA 90275 Attention: Andy Winje 141 1 W. 190th St. Suite 525 Gardena, CA 90248 t: 310.329.0102 f: 310.329.1021 www.l<oacor-pot-ation.com RE: Construction Management Services for the Relining of McCarrell Canyon Dear Mr. Winje: KOA Corporation ("KOA") appreciates the opportunity to submit this proposal to the City of Rancho Palos Verdes to provide Construction Management and Public Relations services for the McCarrell Canyon Pipeline Relining Project. KOA has the expertise and resources required to assist the City of Rancho Palos Verdes in a timely and efficient manner for the execution of this project. The KOA team, our project systems, and our entire management structure are geared to providing flexible services to agencies such as yours. We assure that our key personnel will be assigned to provide services for its duration and will not be removed or replaced by us without concurrence from the City of Rancho Palos Verdes. Alan Braatvedt will be the Management Contact and Project Manager for this contract. The contract would be managed though the South Bay office at 1411 W. 190th Street, Suite 525, Gardena, CA, 90248; Phone: 310.329.0102; Fax: 310.329.1021; Email: alanb@koacorp.com. Thank you for this opportunity to offer our services to the City of Rancho Palos Verdes. Should you have questions during the selection process, please contact me at 310.525.0684. Sincerely, KOA Corporation L rjv— — Alan Braatvedt V.P. of South Bay Operations LOSANGELES ONTARIO ORANGE SAN DIEGO SOUTH BAY 58 KOA CORPORATION PLANNING S FNGINFFRING Summary of Services KOA Corporation will provide professional services to the City of Rancho Palos Verdes for the project, which will include: • Public Relations outreach, specifically for the sections of the project that run through Bay Club and St. Peter's Church and the access to the beach adjacent to the Pre -School at Abalone Cove. • Managing the contract, which will include: schedule controls; beach access; private property access and constraints; addressing RFI's and all unforeseen conditions; measurement; change management negotiations etc. • Document Controls, including: Correspondence; permits; payment applications; labor compliance; warrantees; final sign off of the project and all other required documentation. Schedule We propose to use Alan Braatvedt as the Construction Manager and specifically as the point of contact between the contractor and the property owners and to conduct all outreach and negotiations. Alan may be assisted in the document controls and contract management by Mike Jenkins. Project Experience KOA and Alan in particular, has been intimately involved with the similar San Ramon Canyon project and was directly involved with the construction of the McCarrell Canyon Storm Drainage System a few years ago. During the McCarrell Canyon construction project, Alan was the point person representing the City in dealing directly with Bay Club; St Peters and the Pre-school at Abalone Cove. We have worked extensively with the City and so understand's the way that the City operates and know most of the Staff. Fee We anticipate a requirement of about 14 -hours a week for the service, averaged over 7 weeks at the rate of $140/hour. We understand that the initial work will begin before the start of work and will likely wrap up after the construction is completed and so propose a lump -sum cost of $14,000 Expenses Project expenses are included in the Fee City of rancho Palos Verdes McCarrell Canyon Relining: CM Services 2 419/59 KOA CORPORATION FtANNING, & ENGINEERING Authorization The signature below indicates the Client has carefully reviewed this proposal and authorizes KOA to proceed. Please return this authorization together with a copy of the complete proposal to our office. Our work cannot commence until we receive this written authorization or an executed agreement. Alan Braatvedt Date V.P. of South Bay Operations KOA Corporation City of Rancho Palos Verdes ("Client") has carefully reviewed this proposal and hereby authorizes KOA Corporation to commence work as indicated within the terms and conditions of this proposal. Signature Date Name (please print) Title (please print) City of Rancho Palos Verdes McCarroll Canyon Relining: CM Services 3 4/990