RPVCCA_CC_SR_2014_03_18_F_Storm_Drain_Video_InspectionCITY OF RANCHO PALOS VERDES
MEMORANDUM
TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS
FROM:
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MICHAEL THRONE, DIRECTOR OF PUBLIC WORKS uO
DATE:
SUBJECT:
REVIEWED:
MARCH 18, 2014
AWARD AGREEMENT -STORM DRAIN VIDEO
INSPECTION AND CLEANING SERVCES
CAROLYNN PETRU, ACTING CITY MANAGER~
Project Managers: Ron Dragoo, Senior Engineer
Nadia Carrasco, Assistant Engineer
RECOMMENDATION
1. Award a three-year contract for Storm Drain Video Inspection and Cleaning
services to Performance Pipeline Technologies, in an amount not to exceed
$200,000 annually.
2. Authorize the Mayor and City Clerk to execute the agreement with
Performance Pipeline Technologies.
3. Authorize the expenditure of up to $200,000 for the remainder of Fiscal Year
2013-14 and Fiscal Years 2014-15, 2015-16 and 2016-17 in accordance with
future budgeted amounts.
BACKGROUND/DISCUSSION
Storm drain video inspection and cleaning services are performed as needed, largely to
support the Storm Drain Lining program, which is funded by the storm drain user fee.
Approximately 70% of the corrugated metal culverts have been inspected and those
needing repairs have been repaired. Prior to lining a storm drain line, the pipe must be
carefully cleaned and video inspected to determine the condition of the pipe along with
its length and diameter. Cleaning is required to allow the video camera to pass through
the pipe so problem areas can be identified and the length of the pipe to be lined
established. The cleaning of storm drain pipes must be performed in a very careful
manner, especially when working with corrugated metal pipes (CMPs) to avoid
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destroying what is often a fragile rotting shell of a pipe. More often than not, CMPs
require repairs after the cleaning is complete and prior to the lining process. Many of
these repairs can be completed within the pipe provided a specialized contractor is
available to complete the repairs.
ANALYSIS
The project was advertised and sealed bids were received and opened at 2:.00 p.m. on
March 6, 2014. Two proposals were received and the lowest responsive and
responsible bid received was from Performance Pipeline Technologies.
The Base Bid includes storm drain line cleaning using a vactor truck to vacuum debris
from within the storm drain lines and disposal of the debris collected, grouting sections
of storm drain lines and repairing inverts that need pre-lining patches, completing point
repairs to pipes that cannot be repaired internally, and providing complete video
inspections of pipes. Due to budgetary constraints, the work scoped through the
specifications will be requested one location at a time. Using this method to accomplish
the work, staff is able to control the amount of pipe that is cleaned and ready to be
lined, managing work to budgeted amounts. The bid summary follows:
CONTRACTOR BASE BID AMOUNT
Performance Pipeline Technologies $292,500.00
Mike Perlich and Sons, Inc. $547,800.00
Project Budaet $200,000
The bid was reviewed for consistency with bid requirements. References provided were
contacted and all reported satisfactory performance. The bid documents are in order
and the low bidder's contractor's license is current. The low bidder has performed this
work for RPV previously and the Contractor's previous performance has been
satisfactory.
The bids received exceed the planned budget for this work. However, the base bid was
structured to allow quantities to be adjusted so the budget can be maintained and
expenditures during any single year can be managed to the not to exceed the budgeted
amount of $200,000.
CONCLUSIONS
Approving the recommendations will award a contract to Performance Pipeline
Technologies for storm drain video inspection and cleaning services.
FISCAL IMPACT
The recommended action will result in the expenditure of up to $200,000 annually
during this and the subsequent three fiscal years.
Funds are available and budgeted for this work through the Water Quality and Flood
Protection Program (WQFP).
Attachment: Agreement for Storm Drain Video Inspection and Cleaning Services
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CITY OF RANCHO PALOS VERDES
PUBLIC WORKS AGREEMENT
THIS AGREEMENT ("Agreement") is made and entered this day of , 2014,
by and between the CITY OF RANCHO PALOS VERDES, a California municipal corporation
("City") and Performance Pipeline Technologies ("Contractor"). Contractor's license number is
825824 C-42.
In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1. 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
STORM DRAIN VIDEO INSPECTION AND CLEANING SERVICES ("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 through June 30, 2017.
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.
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6. Compensation. In consideration of the services rendered hereunder, City shall pay
Contractor a not to exceed amount of two hundred thousand dollars ($200,000.00) 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
mandatory details are provided in Public Contract Code Section 22300(d), which
is incorporated herein by this reference.
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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
"lndemnitees") 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
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,
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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 lndemnitees. Contractor shall pay
and satisfy any judgment, award or decree that may be rendered against
lndemnitees in any such Claim. Contractor shall reimburse lndemnitees 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
lndemnitees. 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
lndemnitees' 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. lndemnitees 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 lndemnitees and shall operate to fully
indemnify lndemnitees 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 lndemnitees, 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 lndemnitees.
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 lndemnitees
may have under the law. Payment is not required as a condition precedent to an
lndemnitee's right to recover under this indemnity provision, and an entry of
judgment against a Contractor shall be conclusive in favor of the lndemnitee's right
to recover under this indemnity provision.
14. Incorporation by 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
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).
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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 Ill 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
mciterially 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
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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
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.
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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.
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
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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]
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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
P·c1fl}{aA,t~"''-«~<..Li.Al<. T"lvl.fAblaJ' ~ .. ,
("CONTRACTOR")
By:~/)---.
Printed Name: ~<... & V'< ~5,l-?w~
Title: __ c_w_,;ef ______ _
By: _________ _
Printed Name:--------
Title: __________ _
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