CC SR 20200204 F - Award Agreement for Abalone Cove Sewer Maintenance
CITY COUNCIL MEETING DATE: 02/04/2020
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to award a three-year contract services agreement to
Multi W. Systems, Inc. to maintain and repair sewer pumps
RECOMMENDED COUNCIL ACTION:
(1) Award a three-year contract services agreement to Multi W. Systems, Inc. in
the total amount of $180,000 ($60,000 per year); and,
(2) Authorize the Mayor and City Clerk to execute the attached contract as
approved by the City Attorney.
FISCAL IMPACT: The recommendations will result in a total authorized expenditure of
up to $180,000 over the three-year term of the agreement. Funds
budgeted in Fiscal Year 2019-20 are $60,000.
Amount Budgeted: $60,000
Additional Appropriation: N/A
Account Number(s): 225-400-0000-5201 (Abalone Cove Sewer Maint.- Repair & Maintenance)
ORIGINATED BY: Ron Dragoo, PE, City Engineer for
REVIEWED BY: Elias Sassoon, PE, Director of Public Works
APPROVED BY: Ara Mihranian, AICP, Interim City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Agreement with Multi W. Systems, Inc. (page A-1)
BACKGROUND AND DISCUSSION:
The Public Works Department relies on contractors to provide maintenance services,
including emergency repairs to the low pressure grinder pumps and lift stations in the
Abalone Cove Sewer System. Services provided typically include a site visit to
determine problems, performing electrical system troubleshooting, removing and
unjamming pumps, and reinstalling pumps, installing new pumps and performing
preventative maintenance. These services are provided in response to a nonoperational
residential sewage lift system or to restore service and perform preventative
maintenance on larger pump stations (lift stations).
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The existing system uses Environment One (Eone) low pressure pumps (grinder
pumps) to lift residential waste over the hilly terrain in the Portuguese Bend
neighborhood. These pumps were installed when the system was initially constructed in
2001 and have been updated with new pumps, as required. When services are required
for a nonoperational pump (grinder pump or lift station), Staff will notify the contractor to
troubleshoot the problem, remove the pump, perform on-site evaluation of the problem,
and place a pump back into service. If required, the non-operational pump that was
removed from the system will be delivered to the manufacturer's franchise d service
provider for repairs, if under warranty.
For several years, Staff has worked with Multi W. Systems, which has the specialized
skills required to work on the Abalone Cove Sewer System's complex pressurized
system. Due to the specific skill requirements of the system, maintenance providers
must be trained by Eone on how to remove and replace the pumps. Multi W. Systems
has been trained in this way. Accordingly, it is a sole source provider for removal and
replacement of the grinder pumps. Multi W. Systems has been fully vetted by City Staff.
It possesses the expertise, proficiency, and experience to perform the requisite
services, and has been providing these services since the Abalone Cove Sewer System
went on line in 2002.
The required funds needed for this fiscal year to provide the services through this
agreement are budgeted through the Abalone Cove Sewer Maintenance Program in the
FY19-20 budget. Staff manages the work awarded through these maintenance
agreements, ensuring funds awarded remain within budgeted amounts. If Staff’s
recommendations are approved, a maintenance agreement would be executed with
Multi W. Systems. The amount awarded to the firm over the course of the year will be a
function of the approved budget, and the needs of the department. The work will be
performed in accordance with approved rates included in the agreement (Attachment
A). The cumulative contract amount is limited to $60,000 for each fiscal year over a
three-year contract period.
ALTERNATIVES:
In addition to the Staff recommendations, the following alternative action is available for
the City Council’s consideration:
1. Discuss other alternatives that may be appropriate.
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CONTRACTSERVICESAGREEMENT
By and Between
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CITY OF RANCHO PALOS VERDES
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·and·
MULTI W. SYSTEMS, INC.
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AGREEMENT FOR CONTRACT SERVICES
BETWEEN THE CITY OF RANCHO PALOS VERDES AND
MULTI W. SYSTEMS, INC.
THIS AGREEMENT FOR CONTRACT SERVICES (herein “Agreement”) is made and
entered into this _____ day of _______, 2020 by and between the CITY OF RANCHO PALOS
VERDES, a California municipal corporation (“City”) and MULTI W. SYSTEMS, INC., a
California company (“Consultant”). City and Consultant may be referred to, individually or
collectively, as “Party” or “Parties.”
RECITALS
A. City has sought, by issuance of a Request for Proposals or Invitation for Bids, the
performance of the services defined and described particularly in Article 1 of this Agreement.
B. Consultant, following submission of a proposal or bid for the performance of the
services defined and described particularly in Article 1 of this Agreement, was selected by the
City to perform those services.
C. Pursuant to the City of Rancho Palos Verdes Municipal Code, City has authority
to enter into and execute this Agreement.
D. The Parties desire to formalize the selection of Consultant for performance of
those services defined and described particularly in Article 1 of this Agreement and desire that
the terms of that performance be as particularly defined and described herein.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by
the Parties and contained herein and other consideration, the value and adequacy of which are
hereby acknowledged, the parties agree as follows:
ARTICLE 1. SERVICES OF CONSULTANT
1.1 Scope of Services.
In compliance with all terms and conditions of this Agreement, the Consultant shall
provide those services specified in the “Scope of Services” attached hereto as Exhibit “A” and
incorporated herein by this reference, which may be referred to herein as the “services” or
“work” hereunder. As a material inducement to the City entering into this Agreement, Consultant
represents and warrants that it has the qualifications, experience, and facilities necessary to
properly perform the services required under this Agreement in a thorough, competent, and
professional manner, and is experienced in performing the work and services contemplated
herein. Consultant shall at all times faithfully, competently and to the best of its ability,
experience and talent, perform all services described herein. Consultant covenants that it shall
follow the highest professional standards in performing the work and services required hereunder
and that all materials will be both of good quality as well as fit for the purpose intended. For
purposes of this Agreement, the phrase “highest professional standards” shall mean those
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standards of practice recognized by one or more first-class firms performing similar work urider
similar circumstances.
1.2 Consultant's Proposal.
The Scope of Service shall include the Consultant's scope of work or bid which shall be
incorporated herein by this reference as though fully set forth herein. In the event of any
inconsistency between the terrris of such proposal and this Agreement, the terins of this
Agreement shall govern.
1~3 Compliance with Law.
Consultant shall keep itself informed concerning, and shall render all services hereunder
in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any
Federal, State or local governmental entity having jurisdiction in effect at the time service is
rendered.
1.4 California Labor Law.
If the Scope of Services includes any "public work" or "maintenance work," as those
terms are defined in California Labor Code section 1720 et seq. and California Code of
Regulations, Title 8, Section 16000 et seq., and if the total compensation is $1,000 or more,
Consultant shall pay prevailing wages for such work and comply with the requirements in
California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws,
including the following requirements:
(a) Public Work. The Parties acknowledge that some or all of the work to be
performed under this Agreement is a "public work" as defined in Labor Code Section 1720 and
that this Agreement is therefore subject to the requirements of Division 2, Part 7, Chapter 1
(commencing with Section 1720) of the California Labor Code relating to public works contracts
and the rules and regulations established by the Department of Industrial Relations ("DIR")
implementing such statutes. The work performed under this Agreement is subject to compliance
monitoring and enforcement by the DIR. Consultant shall post job site notices, as prescribed by
regulation.
(b) P revailing Wages. Consultant shall pay prevailing wages to the extent
required by Labor Code Section 1771. Pursuant to Labor Code Section 1773.2, copies of.the
prevailing rate of per diem wages are on file at City Hall and will be made available to any
interested party on request. By initiating any work under this Agreement, Consultant
acknowledges receipt of a copy of the Department of Industrial Relations (DIR) determination of
the prevailing rate of per diem wages, and Consultant shall post a copy of the same at each job
site where work is performed under this Agreement.
(c) Penalty for Failure to Pay PrevaiUng Wages. Consultant shall comply with
and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment
of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The
Consultant shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar
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day, or portion thereof, for each worker paid less than the prevailing rates as determined by the
DIR for the work or craft in which the worker is employed for any public work done pursuant to
this Agreement by Consultant or by any subcontractor.
(d) Payroll Records. Consultant shall comply with and be bound by the
provisions of Labor Code Section 1776, which requires Consultant and each subconsultant to:
keep accurate payroll records and verify such records in writing under penalty of perjury, as
specified in Section 1776; certify and make such payroll records available for inspection as
provided by Section 1776; and inform the City ofthe location ofthe records.
(e) Apprentices. Consultant shall comply with and be bound by the provisions
of Labor Code Sections 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8,
Section 200 et seq. concerning the employment of apprentices on public works projects.
Consultant shall be responsible for compliance with these aforementioned Sections for all
apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall
provide City with a copy of the information submitted to any applicable apprenticeship program.
Wilhin sixty (60) days aflt:r concluding work pursuant to this Agrt:t:mt:nt, Consultant and each of
its subconsultants shall submit to the City a verified statement of the journeyman and apprentice
hours performed under this Agreement.
(f) Eight-Hour Work Day. Consultant acknowledges that eight (8) hours labor
constitutes a legal day's work. Consultant shall comply with and be bound by Labor Code
Section 181 o~
(g) Penalties for Excess Hours. Consultant shall comply with and be bound by
the provisions of Labor Code Section 1813 concerning penalties for workers who work excess
hours. The Consultant shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each
worker employed in the performance of this Agreement by the Consultant or by any
subcontractor for each calendar day during which such worker is required or permitted to work
more than eight (8) hours in any one calendar day and forty ( 40) hours in any one calendar week
in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code.
Pursuant to Labor Code section 1815; work performed by employees of Consultant in excess of
eight (8) hours per day, and forty ( 40) hours during any one week shall be permitted upon public
work upon compensation for all hours worked in excess of 8 hours per day at not less than one
and one-half ( 1 Yz) times the basic rate of pay.
(h) Workers' Compensation. California Labor Code Sections 1860 and 3700
provide that every employer will be required to secure the payment of compensation to its
employees if it has employees: In accordance with the provisions of California Labor Code
Section 1861, Consultant 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
undertake self-insurance in accordance with the provisions of that code, and I will
comply with such provisions before commencing the performance of the work of
this contract."
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Consultant's Authorized Initials ~. ~
(i) Consultant's Responsibility for Subcontractors. For every subcontractor
who will perform work under this Agreement, Consultant shall be responsible for such
subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720)
of the California Labor Code, and shall make such compliance a requirement in any contract with
any subcontractor for work under this Agreement. Consultant shall be required to take all actions
necessary to enforce such contractual provisions and ensure subcontractor's compliance,
including without limitation, conducting a revi~w of the certified payroll records of the
subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to
pay his or her workers the specified prevailing rate of wages. Consultant shall diligently take
corrective action to halt or lectify any such failure by any subcontractor.
1.5 L icenses , Permits, Fees and Assessments.
Consultant shall obtain at its sole cost and expense such licenses, permits and approvals
as may be required by law for the performance of the services required by this Agreement.
Consultant shall have the sole obligation to pay for ariy fees, assessments and taxes, plus
applica.ble penalties and interest, which may be imposed by law arid arise from or are necessary
for the Consultant's performance of the serVices required by this Agreement, and shall
indemnify, defend and hold harmless City, its officers, employees or agents of City, against any
such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City . .
hereunder.
1.6 FamiJiarity with Work.
By executing this Agreement, Consultant warrants that Consultant (i) has thoroughly
investigated and considered the scope of services to be performed, (ii) has carefully considered
how the services should be performed, and (iii) fully understands the facilities, difficulties and
restrictions attending performance of the services under this Agreement. If the services involve
work upon any site, Consultant warrants that Consultant has or will investigate the site and is or
will be fully acquainted with the conditions there existing, prior to commencement of services
hereunder. Should the Consultant discover any latent or unknown conditions, which will
materially affect the performance of the services hereunder, Consultant shall immediately inform
the City of such fact and shall not proceed except at Consultant's risk until written instructions
are received from the Contract Officer.
1.7 Care of Work.
The Consultant shall adopt reasonable methods during the life of the Agreement to
furnish continuous protection to the work, and the equipment, materials , papers, documents,
plans, studies and/or other compone~ts thereof to prevent losses or damages, and shall be
respons ibl e for all su ch da mages, to pers on s or prope rty, until acceptanc e of the work by City,
except such losses or damages as may be caused by C ity's own ne gligence.
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1.8 Further Responsibilities of Parties.
Both parties agree to use reasonable care and diligence to perform their respective
obligations under this Agreement. Both parties agree to act in good faith to execute all
instruments, prepare all documents ancl.take all actions as may be reasonably necessary to carry
out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible
for the service of the other.
1.9 Additional Services.
City shall have the right at any time during the performance of the services, without
invalidating this Agreement, to order extra work beyond that specified in the Scope of Services
or make changes by altering, adding to or deducting froll1 said work. No such extra work may be
undertaken unless a written order is first given by the Contract Officer to the Consultant,
incorporating therein any adjustment in (i) the Contract Sum for the actual costs of the extra
work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the
written approval of the Consultant. Any increase in compensation ofup to ten percent (10%) of
the Contract Sum or $25,000, whichever is less; or, in the time to perform of up to one h~ndred
eighty (180) days, may be approved by the Contract Officer. Any greater increases, taken either
separately or cumulatively, must be approved, by the City CounciL It is expressly understood by
Con~ultant that the provisions of this Section shall not apply to services specifically set forth in
the Scope of Services. Consultant hereby acknowledges that it accepts the risk that the services to
be provided pursuant to the Scope of Servi<;es may be more costly or· time consuming than
Consultant anticipates and that Consultant shall not be entitled to additional compensation
therefor. City may in its sole and absolute discretion have similar work done by other
Consultants. No claims for an increase in the Contract Sum or time for performance shall be
valid unless the procedures established in this Section are followed.
1.10 Special Requirements.
Additional terms and conditions of this Agreement, if any, which are made a part hereof
are set forth in the "Special Requirements" attached hereto as Exhibjt 'B" and incorporated
herein by this reference. In the event of a conflict between the provisions ofExhibit "B" and any
other provisions of this Agreement, the provisions of Exhibit ' B"shall govern.
ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.
2.1 Contract Sum.
Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the
amounts specified in the "Schedule of Compensation" attached hereto as Exhibit "C" and
incorporated herein by this reference. The total contract compensation, including reimbursement
for actual expenses, shall not exceed $180,000 (One Hundred and Eighty Thousand Dollars.)
The total yearly compensation, including reimbursement for actual expenses, shall not exceed
$60,000 (Sixty Thousand Dollars) (the "Contract Sum"), unless additional compensation is
approved pursuant to Section 1.9.
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2.2 Metbod of Compensation.
The method of compensation may include: (i) a lump sum payment upon completion; (ii)
payment in accordance with specified tasks or the percentage of completion of the services, less
contract retention; (iii) payment for time and materials based upon the Consultant's rates as
specified in the Schedule of Compensation, provided that (a) time estimates are provided for the
performance of sub tasks, (b) contract retention is maintained, and (c) the Contract Sum is not
exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation.
2.3 Reimbursable Expenses.
Compensation may include reimbursement for actual and neces.sary expenditures for
reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in
advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5,
and only if specified in the Schedule of Compensation. The Contract Sum shall include the
attendance of Consultant at all project meetings reasonably deemed necessary by the City.
Coordination of the performance of the work with City is , a critical component of the services .. If
Consultant is required to attend additional meetings to facilitate such coordination, Consultant
shall not be entitled to any additional compensation for attending said meetings.
2.4 Invoices.
Each month Consultant shall furnish tci City . an original invoice for all work performed
and expenses incurred during the preceding month in a form approved by City's Director of
Finance. By submitting an invoice for payment under this Agreement, Consultant is certifying
compliance with all provisions of the Agreement. The invoice shall contain all information
specified in Exhibit "C", and shall detail charges for all necessary and actual expenses by the
following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-
contractor contracts. Sub-contractor charges shall also be detailed by such categories. Consultant
shall not invoice City for any duplicate services performed by more than one person.
City shall independently review each invoice submitted by the Consultant to determine
whether the work performed and expenses incurred are in compliance with the provisions of this
Agreement. Except as to any charges for work performed or expenses . incurred by Consultant
which are disputed by City, or as provided in Section 7.3, City will use its best efforts to cause
Consultant to be paid within forty-five (45) days of receipt of Consultant's correct and
undisputed invoice; however, Consultant acknowledges and agrees that due to City warrant run
procedures, the City cannot guarantee that payment will occur within this time period. In the
event any charges or expenses are disputed by City, the original invoice shall be returned by City
to Consultant for correction and resubmission. Review and payment by City for any invoice
provided by the Consultant shall not constitute a waiver of any rights or remedies provided
herein or any applicable law.
2.5 Waiver.
Payment to Consultant for work performed pursuant to this Agreement shall not be
deemed to waive any defects in work performed by Consultant.
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ARTICLE 3. PERFORMANCE SCHEDULE
3.1 Time of Essence.
Time is of the essence in the performance of this Agreem'ent.
3.2 Schedule of Performance.
Consultant shall commence the services pursuant to this Agreement upon receipt of a
written notice to proceed and shall perform all services within the time period(s) established in
the "Schedule of Performance" attached hereto as Exhibit 'D' and incorporated herein by this
reference. When requested by the Consultant, extensions to the time period(s) specified in the
Schedule of Performance may be approved in writing by the Contract Officer but not exceeding
one hundred eighty (180) days cumulatively. ·
3.3 Force Majeure.
The time period(s) specified in the Schedule of Performance for performance of the
services rendered pursuant to this Agreement shall be extended because of any delays due to
unforeseeable causes beyond the control and without the fault or negligence of the Consultant,
including, but not restricted to, acts of God or of the public enemy, unusually severe weather,
fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes,
wars, litigation, and/or acts of any governmental agency, including the City, if the Consultant
shall within ten (10) days of the commencement of such delay notify the Contract Officer in
writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of
delay, and extend the. time for performing the services for the period of the enforced delay when
and if in the judgment of the Contract Officer such delay is justified. The Contract Officer's
dt(termination shall be final and conclusive upon the parties to this Agreement. In no event shall
Consultant be entitled to recover damages against the City for any delay in the performance of
this Agreement, however caused, Consultant's sole remedy being extension of the Agreement
pursuant to this Section.
3.4 Term.
Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement
shall continue in full force artd effect until completion of the services but not exceeding 3 years
from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit
"D"). The City may, in its sole discretion, extend the Term for 3 additional one-year term(s).
ARTICLE 4. COORDINATION OF WORK
4.1 Representatives and Personnel of Consultant.
The following principals of Consultant ("Principals") are hereby designated as being the
principals and representatives of Consultant authorized to act in its behalf with respect to the
work specified herein and make all decisions in connection therewith:
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Wen Wang President
(Name) (Title)
William Wang Vice President
(Name) (Title)
It is expressly understood that the experience, knowledge, capability and reputation of the
foregoing principals were a substantial inducement for City to enter into this Agreement.
Therefore, the foregoing principals shall be responsible during the term of this Agreement for
directing all a_ctivities of Consultant and devoting sufficient time to personally supervise the
services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be
under the exclusive direction and control of the Principals. For purposes of this Agreement, the
foregoing Principals may not be replaced nor may their responsibilities be substantially reduced
by Consultant without the express written approval of City. Additionally, Consultant shall utilize
only competent personnel to perform services pursuant to this Agreement. Consultant shall make
every reasonable effort to maintain the stability and continuity of Consultant's staff and
subcontractors, if any, assigned to perform the services required under this Agreement·
Consultant shall notify City of any changes in Consultant's staff and subcontractors, if any,
assigned to perform the services required under this Agreement, prior to and during any such
performance.
4.2 Status of Consultant.
Consultant shall have no authority to bind City in any manner, or to incur any obligation,
debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless
such authority is expressly conferred under this Agreement or is otherwise expressly conferred in
writing by City. Consultant shall not at any time or in any manner represent that Consultant or
any of Consultant's officers, employees, or agents are in any manner officials, officers,
employees or agents of City. Neither Consultant, nor any of Consultant's officers, employees or
agents, shall obtain any rights to retirement, health care or any other benefits which may
otherwise accrue to City's employees. Consultant expressly waives any claim Consultant may
have to any such rights.
4.3 Contract Officer.
The Contract Officer shall be Ron Dragoo, City Engineer, or such person as may be
designated by the City Manager. It shall be the Consultant's responsibility to assure that the
Contract Officer is kept informed of the progress of the performance of the services and the
Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless
otherwise specified herein, any approval of City required hereunder shall mean the approval of
the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City
Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of
this Agreement.
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4.4 Independent Consultant.
Neither the City nor any of its employees shall have any control over the manner, mode or
means by which Consultant, its agents or employees, perform the services required herein, except
as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or
control of Consultant's employees, servants, representatives or agents, or in fixing their number,
compensation or hours of service. Consultant shall perform all services required herein as an
independent contractor of City and shall remain at all times as to City a wholly independent
contractor with only ·such obligations as are consistent with that role. Consultant shall not at any
time or in any manner represent that it or any of its agents or employees are agents or employees
of City. City shall not in any way , or for any purpose become or be deemed -to be a partner of
Consultant in its business or otherwise or a joint venture or a member of any joint enterprise with
Consultant.
4.5 Prohibition Against Subcontracting or.Assignment.
The experience, knowledge, capability and reputation of Consultant, its principals and
employees were a substantial inducement for ,the City to enter into this Agreement. Therefore,
Consultant shall not contract with any other entity to perform in whole or in part the services
required hereunder without the express written approval of the City. In additipn, neither this
Agreement nor any interest herein may be transferred, ,assigned, conveyed, hypothe~ated or
encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise,
without the prior written approval of City. Transfers restricted hereunder shall include the
transfer to any person or group of persons acting in concert of more th~n twenty five percent
(25%) of the present ownership and/or control of Consultant, taking all transfers into account on
a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy
proceeding, this Agreement shall ·be void. No approved transfer shall release the Consultant or
any surety of Consultant of any liability hereunder without the express consent of City.
ARTICLE 5. INSURANCE AND INDEMNIFICATION
5.1 Insurance Coverages.
Without limiting Consultant's indemnification of City, and prior to commencement of
any services under this Agreement, Consultant shall obtain, provide and maintain at its own
expense during the term of this Agreement, policies of insurance of the type and amounts
described below and in a form satisfactory to City.
(a) General liability insurance; Consultant shall maintain commercial general
liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in
an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily
injury, personal injury, and property damage. The policy must include contractual liability that
has not been amended. Any endorsement restricting standard ISO "insured contract" language
will not be accepted.
(b) Automobile liability insurance. Consultant shall maintain automobile
insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury
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and property damage for all activities of the Consultant arising out of or in connection with
Services to be performed under this Agreement, including coverage for any owned, hired, non..:
owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each
accident.
(c) Professional liability (errors & omissions) insurance. Consultant shall
maintain professional liability insurance that covers the Services to be performed in connection
with this Agreement, in the minimum amourtt'of$1,000,000 per claim and in the aggregate. Any
policy inception date, continuity date, or retroactive date must be before the effective date of this
Agreement and Consultant agrees to maintain continuous coverage through ·a period no less than
three (3) years after completion of the services required by this Agreement.
(d) Workers' compensation insurance. Consultant shall maintain Workers'
Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at
least $1,000,000).
(e) Subcontractors. Consultant shall include all subcontractors as insureds
under its policies or shall furnish separate certificates and certified endorsements for each
subcontractor. All coverages for subcontractors shall include all of the requirements stated
herein.
(f) Additional Insurance. Policies of such other insurance, as may be required
in the Special Requirements in Exhibit "B".
5.2 General Insurance Requirements.
(a) Proof of insurance. Consultant shall provide certificates of insurance to
City as evidence of the insurance coverage required herein, along with a waiver of subrogation
endorsement for workers' compensation. Insurance certificates and endorsements must be
approved by City's Risk Manager prior to commencement of performance. Current certification
of insurance shall be kept on file with City at all times during the term of this Agreement. City
reserves the right to require complete, certified copies of all required insurance policies, at any
time.
(b) Duration of coverage. Consultant shall procure and maintain for the
duration of this Agreement insurance against claims for injuries to persons or damages to
property; which may arise from or in connection with the performance of the Services hereunder
by Consultant, its agents, representatives, employees or subconsultants.
(c) Primary/noncontributing. Coverage provided by Consultant shall be
primary and any insurance or self-insurance procun:d or maintained by City shall not be required
to contribute with it. The limits of insurance required herein may be satisfied by a combination of
primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be
endorsed to contain a provision that such coverage shall also apply on a primary and non-
contributory basis for the benefit of City before the City's own insurance or self-insurance shall
be called upon to protect it as a named insured.
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(d) City 's rights of enforcement. In the event any policy of insurance required
under this Agreement does not comply with these specifications or is canceled and not replaced,
City has the right but not the duty to obtain the insurance it deems necessary and any premium
paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient
to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(e) Acceptable insurers. All insurance policies shall be issued by an insurance
company currently authorized by the Insurance Commissioner to transact business of insurance
or that is on the List of Approved Surplus Line Insurers in the State of California, with an
assigned policyholders' Rating of A-(or higher) and Financial Size Category Class VI (or larger)
in accordapce with the latest edition of Best'~ Key Rating Guide, unless otherwise approved by
the City's Risk Manager ..
(f) Waiver of subrogation. All insurance coverage maintained or procured
pursuant to this agreement shall be endorsed . to waive subrogation against City, its elected or
appointed officers, agents, officials, employees and volunteers or shall specifica,lly allow
Consultant or others providing insurance evidence in compliance with these specifications to
waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery
against City, and shall require similar written express waivers and insurance clauses from each of
its subconsultants.
(g) Enforcement of contract provisions (non-estoppel). Consultant
acknowledges and agrees that any actual or alleged failure on the part of the City to inform
Consultant of non-compliance with any requirement imposes no additional, obligations on the
City nor does it waive any rights hereunder.
(h) Requirements not limiting. Requirements of specific coverage features or
limits contained in this section are not intended as a limitation on coverage, limits or other
requirements, or a waiver of any coverage normally provided by any insurance. Specific
reference to a given coverage feature is for purposes of clarification only as it pertains to a given
issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other
coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums
shown above, the City requires and shall be entitled to coverage for the higher limits maintained
by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of
insurance and coverage shall be available to the City.
(i) Notice of cancellation. Consultant agrees to oblige its insurance agent or
broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for
nonpayment for which a ten (1 0) day notice is required) or nonrenewal of coverage for each
required coverage.
(j) Additional insured status. General liability policies shall provide or be
endorsed to provide that City and its officers, officials, employees, and agents, and volunteers
shall be additional insureds under such policies. This provision shall also apply to any
excess/umbrella liability policies.
01203.0006/622167.3 11
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(k) Prohib it ion of undi sclosed coverage limitat i ons ~ None of the coverages
required herein will be in compliance with these requirements if they include any limiting
endorsement of any kind that has not been first submitted to City and approved of in writing.
(l) Separation of in sureds . A severability of interests provision must apply for
all additional insureds ensuring that Consultant's insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with respect to the insurer's limits of
liability. The policy(ies) shall not contain any cross-liability exclusions.
(ni) Pass through clau se. Consultant agrees to ensure that its subconsultants,
subcontractors, and any other party involved with the project who is brought onto or involved in
the project by Consultant, provide the same minimum insurance coverage and endorsements
required of Consultant. Consultant agrees to monitor and review all such coverage and assumes
all responsibility for ensuring that such coverage is provided in conformity with the requirements
of this section. Consultant agrees that upon request, all agreements with consultants,
subcontractors, and others engaged in the project will be submitted to City for revie~.
(n) Age ncy 's right to re vise sp ecification s . The City reserves the right at any
time during the term of the contract to change the amounts and types of insurance required by
giving the Consultant ninety (90) days advance written notice of such change. If such change
results in substantial additional cost to the Consultant, the City and Consultant may renegotiate
Consultant's compensation.
(o) Sel f -insured retentions. Any self-insured retentions must be declared to
and approved by City . City reserves the right to require that self-insured retentions be eliminated,
lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these
specifications unless approved by City. ·
(p) Timely not ice of c laim s . Consultant shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from Consultant's performance
under this Agreement, and that involve or may involve coverage under any of the required
liability policies.
(q) A dditional insurance. Consultant shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its own judgment may be
necessary for its proper protection and prosecution ofthe work.
5.3 Indemnification.
To the full extent permitted by law, Consultant agrees to indemnify, defend and hold
harmless the City, its officers, employees and agents ("Indemnified Parties") against, and will
hold and save them and each of them harmless from, any and all actions, either judicial,
administrative, arbitration or regulatory claims, damages to persons or property; losses, costs,
penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein "claims
or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in
connection with the negligent performance of the work, operations or activities provided herein
of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or
01203.0006/622167.3 12
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entity for which Consultant is legally liable ("indemnitors"), or arising from Consultant's or
indemnitors' reckless or willful misconduct, or arising from Consultant's or indemnitors'
negligent performance of or failure to perform any term, provision, covenant or condition of this
Agreement, and in connection therewith:
(a) Consultant will defend any action or actions filed in connection with any
of said claims or liabilities and will pay all costs and expenses, including legal costs and
attorneys' fees incurred in connection therewith;
(b) Consultant will promptly pay any judgment rendered against the City, its
officers, agents or employees for any such claims or liabilities arising out of or in connection
with the negligent performance of or failure to perform such work, operations or activities of
Consultant hereunder; and Consultant agrees to save and hold the City, its officers, agents, and
employees harmless therefrom;
(c) In the event the City, its officers, agents or employees is made a party to
any action or proceeding filed or prosecuted against Consultant for such damages or other claims
arising out of or in connection with the negligent performance of or failure to perform the work,
operation or activities of Consultant hereunder, Consultant agrees to pay to the City, its officers,
agents or employees, any and all costs and expenses incurred by the City, its officers, agents or
employees in such action or proceeding, including but not limited to, legal costs and attorneys'
fees.
Consultant shall incorporate similar indemnity agreements with its subcontractors and if
it fails to do so Consultant shall be fully responsible to indemnify City hereunder therefore, and
failure of City to monitor compliance with these provisions shall not be a waiver hereof. This
indemnification includes claims or liabilities arising from any negligent or wrongful act, error or
omission, or reckless or willful misconduct of Consultant in the performance of professional
services hereunder. The provisions of this Section do not apply to claims or liabilities occurring
as a result of City's sole negligence or willful acts or omissions, but, to the fullest extent
permitted by law, shall apply to claims and liabilities resulting in part from City's negligence,
except that design professionals' indemnity hereunder shall be limited to claims and liabilities
arising out of the negligence, recklessness or willful misconduct of the design professional. The
indemnity obligation shall be binding on successors and assigns of Consultant and shall survive
termination of this Agreement.
ARTICLE 6. RECORD S, REPORTS, AND RELEA SE OF INFORMATION
6.1 Records.
Consultant shall keep, and require subcontractors to keep, such ledgers, books of
accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the
disbursements charged to City and services performed hereunder (the "books and records"), as
shall be necessary to perform the services required by this Agreement and enable the Contract
Officer to evaluate the performance of such services. Any and all such documents shall be
maintained in accordance with generally accepted accounting principles and shall be complete
and detailed. The Contract Officer shall have full and ·free access to such books and records at all
times during normal business hours of City, including the right to inspect, copy, audit and make
01203.0006/622167.3 13
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records and transcripts from such records. Such records shall be maintained for a period of three
(3) years following completion of the services hereunder, and the City shall have access to such
records in the event any audit is required. In the event of dissolution of Consultant's business,
custody of the books and records may be given t~ City, and access shall be provided by
Consultant's successor in interest. Notwithstanding the above, the Consultant shall fully
cooperate with the City in providing access to the books and records if a public records request is
made and disclosure is required by law including but not limited to the California Public Records
Act.
6.2 Reports.
Consultant shall periodically prepare and submit to the Contract Officer such reports
concerning the performance of the services required by this Agreement as the Contract Officer
shall require. Consultant hereby acknowledges that the City is greatly concerned about the cost of
work and services to be performed pursuant to this Agreement. For this reason, Consultant agrees
that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or
will materially increase or decrease the cost of the work or serviCes contemplated herein or, if
Consultant is providing design services, the cost of the project being designed, Consultant shall
promptly notify the Contract Officer of said fact, circumstance, technique or event and the
estimated increased or decreased cost related thereto and, if Consultant is providing qesign
services, the est~mated increased or decreased cost estimate for the project being designed.
6.3 Owners hip of Documents.
All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes,
computer files , reports, records, documents and other materials (the "documents and materials")
prepared by Consultant, its employees, subcontractors and agents in the performance of this
Agreement shall be the property of City and shall be delivered to City upon request of the
Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim
for further employment or additional compensation as a result of the exercise by City of its full
rights of ownership use , reuse, or assignment of the documents and materials hereunder. Any use,
reuse or assignment of such completed documents for other projects and/or use of uncompleted
documents without specific written authorization by the Consultant will be at the City's sole risk
and without liability to Consultant, and Consultant's guarantee and warranties shall not extend to
such use, reuse or assignment. Consultant may retain copies of such documents for its o"»'n use.
Consultant shall have the right to use the concepts embodied therein. All subcontractors shall
provide for assignment to City of any documents or materials prepared by them, and in the event
Consultant fails to secure such assignment, Consultant shall indemnify City for all damages
resulting therefrom. Moreover, Consultant with respect to any documents and materials that may
qualify as "works made for hire" as defined in 17 U.S.C. § 101, such documents and materials
are hereby deemed "works made for hire" for the City.
6.4 Confidentiality and Release of Information.
(a) All information gained or work product produced by Consultant in
performance of this Agreement shall be considered confidential, unless such information is in the
public domain or already known to Consultant. Consultant shall not release or disclose any such
01203.0006/622167.3 14
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information or work product to persons or entities other than City without prior written
authorization from the Contract Officer.
(b) . C on sultant its offi cers, emp loyees, agents or subcontractors, shall not,
without prior written authorization from · the Contract Office r or unless requested by the City
Attorney, voluntarily provide documents, declarations, letters of support, testimony at
depositions, response to interrogatories or other information concerning the work performed
under this Agreement. Response to a subpoena or court order shall not be considered "voluntary"
provided Consultant gives City notice of such court order or subpoena.
(c) If Consultant, or any officer, employee, agent or subcontractor of
Consultant, provides any information or work product in violation of this Agreement, then City
shall have the right to reimbursement and indemnity from Consultant for any damages, costs and
fees, includil!g attorney's fees, caused by or incurred as a result of Consultant's conduct.
(d) Consultant shall promptly notify City should Consultant, its officers,
employees, agents or subcontractors be served with any summons, complaint, subpoena, notice
of deposition, request for documents, interrogatories, request for admissions or other discovery
request, court order or subpoena from any party regarding this Agreement and the work
performed there under. City retains the right, but has no obligation, to represent Consultant or be
present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully
with City and to provide City with the opportunity to review any response to discovery requests
provided by Consultant. However, this right to review any such response does not imply or mean
the right by City to control, direct, or rewrite said response.
ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION
7.1 California Law.
This Agreement shall be interpreted, construed and governed both as to validity and to
performance of the parties in accordance with the laws of the State of California. Legal actions
concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be
instituted in the Superior Court of the County of Los Angeles, State of California, or any other
appropriate court in such county, and Consultant covenants and agrees to submit to the personal
jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District
Court, venue shall lie exclusively in the Central District of California, in the County of Los
Angeles, State of California.
7.2 Dis putes; Defa u lt.
In the event that Consultant is in default under the terms of this Agreement, the City shall
not have any obligation or duty to continue compensating Consultant for any work performed
after the date of default. Instead, the City may give notice to Consultant of the default and the
reasons for the default. The notice shall include the timeframe in which Consultant may cure the
default. This timeframe is presumptively thirty (30) days, but may be extended, though not
reduced, if circumstances warrant. During the period of time that Consultant is in default, the
City shall hold all invoices and shall, when the default is cured, proceed with. payment on the
01203.0006/622167.3 15
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invoices. In the alternative, the City may, in its sole discretion,· elect to pay some or all of the
outstanding invoices during the period of default. If Consultant does not cure the default, the City
may take necessary steps to terminate this Agreement under this Article. Any failure on the part
of the City to give notice of the Consultant's default shall not be deemed to result in a waiver of
the City's legal rights or any rights arising out of any provision of this Agreement.
7.3 Retention of Funds.
Consultant hereby authorizes City 'to deduct from any amount payable to Consultant
(whether or not arising out of this Agreement) (i) any amounts the payment of which may be in
dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or
damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by
reason of Consultant's acts or omissions in pe,rforming or failing to. perform Consultant's
obligation under this Agreement. In the event that any claim is made by a third party, the amount
or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear
to be the basis for a claim of lien, City may withhold from any payment due, without liability for
interest because of such withholding, an amount sufficient to cover such claim. The failure of
City to exercise such right to deduct or to withhold shall not, however, affect the obligations of
the Consultant to insure, indemnify, and protect City as elsewhere provided herein.
7.4 Waiver.
Waiver by any party to this Agreement of any terin, condition, or covenant of this
Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any
party of any breach of the provisions of this Agreement shall not constitute a waiver of any other
provision or a waiver of any subsequent breach or violation of any provision of this Agreement.
Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of
the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by
a non-defaulting party on : any default shall impair such right or remedy or be construed as a
waiver. Any waiver by either party of any default must be in writing and shall not be a: waiver of
any other default concerning the same or any other provision of this Agreement.
7.5 Rights and Remedies are Cumulative.
Except with respect to rights and remedies expressly declared to be exclusive in this
Agreement, the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party.
7.6 Legal Action.
In addition to any other rights or remedies, either party may take legal action, in law or in
equity, to cure, correct or remedy any default, to recover damages for any default, to compel
speCific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain
any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary
01203 ,0006/622167.3 16
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provision herein, Consultant shall file a statutory claim pursuant to Government Code Sections
905 ~t seq. and 910 et seq., in order to pursue a legal action under this Agreement.
7.7 Liquidated Damages.
Since the determination of actual damages for any delay in performance of this
Agreement would be extremely difficult or impractical to determine in the event of a breach of
this Agreement, the Consultant and its sureties shall be liable for and shall pay to the City the
sum of $500 (Five Hundred Dollars) as liquidated damages for each working day of delay in the
performance of any service required hereunder. The City may withhold from any monies payable
on account of services performed by the Contractor any accrued liquidated damages.
7.8 Termination Prior to Expiration of Term.
This Section shall govern any termination of this Contract except as specifically provided
in the following Section for termination for cause. The City reserves the right to terminate this
Contract at any time, with or withou t cause, upon thirty (30) days ' written notice to Consultant,
except that Where termination is due to the fault of the Consultant, the period of notice may be
such shorter time as may be determined by the Contract Officer. In addition, the Consultant
reserves the right to terminate this Contract at any time, with or without cause, upon sixty (60)
days' written notice to City, except that where termination is due to the fault of the City, the
period of notice may be such shorter time as the Consultant may determine. Upon receipt of any
notice of termination, Consultant shall immediately cease all services hereunder except such as
may be specifically approved by the Contract Officer. E xcept where the Consultant has initiated
termination, the Consultant shall be entitled to compensation· for all services rendered prior to the
effective date of the notice. of termination and for any services authorized by the Contract Officer
thereafter in accordance with the Schedule of Co,mpensation or such as may be approved by the
Contract Officer, except as provided in Section 7.3. In the t?vent the Consultant has initiated
termination, the Consultant shall be entitled to compensation only for the reasonable value of the
work product actually produced hereunder. In the event of termination without cause pursuant to
this Section, the terminating party need not provide the non-terminating party with the
opportunity to cure pursuant to Section 7 .2.
7.9 Termination for Default of Consultant.
If termination is due to the failure of the Consultant to fulfill its obligations under this
Agreement, City may, after compliance with the provisions of Section '7.2, take over the work
and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable
to the extent that the total cost for completion of the services required hereunder exceeds the
compensation herein stipulated (provided that the City shall use reasonab-le efforts to mitigate
such damages), and City may withhold any payments to the Consultant for the purpose of set-off
or partial payment of the amounts owed the City as previously stated.
7.10 Attorneys' Fees.
If either party to this Agreement is required to initiate or defend or made a party to any
action or proceeding in any way connected with this Agreement, the prevailing party in such
01203.0006/622167.3 17
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action or proceeding, in addition to any other relief which may be granted, whether legal or
equitable, shall be entitled to reasonable attorney's fees. Attorney's fees· shall include attorney's
fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other
reasonable costs for investigating such action, taking depositions and discovery and all other
necessary costs the court allows which are incurred in such litigation. All such fees shall be
deemed to have accrued on commencement of such action and shall be enforceable whether or
not such action is prosecuted to judgment.
ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
8.1 Non-liability of City Officers a.nd Employees.
No officer or employee of the City shall be personally liable to the Consultant, or any
successor in interest, in the event of any default or breach by the City or for any amomit which
may become due to the Consultant or to its successor, or for breach of any obligation of the terms
ofthis Agreement.
8.2 Conflict of Interest.
Consultant covenants that neither it, nor any officer or principal of 'its firm, has or shall
acquire any interest, directly or indirectly, which would conflict in any manner with the interests
of City or which would in any way hinder Consultant's performance of services under this
Agreement. Consultant further covenants that in the performance of this Agreement, no person
having any such interest shall be employed by it as an officer, employee, agent or subcontractor
without the express written consent of the Contract Officer. Consultant agrees to at all times
avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City
in the performance of this Agreement.
No officer or employee of the City shalJ have any financial interest, direct or indirect, in
this Agreement nor shall any such officer or employee participate in any decision relating to the
Agreement which affects her/his financial interest or the financial interest of any corporation,
partnership or association in which (s)he is, directly or indirectly, interested, in violation of any
State statute or regulation. The Consultant warrants that it has not paid or given and will not pay
or give any third party any money or other consideration for obtaining this Agreement.
8.3 Covenant Against Discrimination.
Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persoris
claiming under or through them, that there shall be no discrimination against or segregation of,
any person or group of persons on account of race, color, ·creed, religion, sex, gender, sexual
orientation, marital status, national origin, ancestry or other protected class in the performance of
this Agreement. Consultant shall take affirmative action to insure that applicants are employed
and that employees are treated during employment without regard to their race, color, creed,
religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other
protected class.
8.4 Unauthorized Aliens.
01203 .0006/622167.3 18
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Consultant hereby promises and agrees to comply with all of the provisions ofthe Federal
Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection
ther~with, shall not employ unauthorized aliens as defined therein. Should Consultant so employ
such unauthorized aliens for the performanc~ of work and/or services covered by this Agreement,
and should any liability or sanctions be imposed against City for such use of unauthorized aliens,
Consultant hereby agrees to and shall. reimburse City for the cost of all such liabilities or
sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City.
ARTICLE 9. MISCELLANEOUS PROVISIONS
9.1 Notices.
Any notice, demand, request, document, consent, approval, or communication either party
desires or is required ,to give to the .other party or, any other person shall be in writing and either
served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager
and to the attention of the Contract Officer (with her/his name and City title), City of Rancho
Palos Verdes, 30940 Hawthorne Blvd., Rancho Palos Verdes, California 90275 und in the case of
the Consultant, to the person(s) at the address designated on the execution page of this
Agreement. Either party may change its address by notifying the other party of the change of
address in writing. Notice shall be deemed communicated at the time personally delivered or in
seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
9.2 Interpretation.
The terms of this Agreement shall be construed in accordance with the meaning of the
language used and shall not be construed for or against either party by reason of the authorship of . . .
this Agreement or any other rule of construction which might otherwise apply.
9.3 Counterparts.
This Agreement may be exebuted in counterparts, each ,of which shall be deemed to be an
original, and such counterparts shall constitute one and the same instrument.
9.4 Integration; Amendment.
This Agreement including the attachments hereto is the entire, complete and exclusive
expression of the understanding of the parties. It is understood that there are no oral agreements
between the parties hereto affecting this Agreement and this Agreement supersedes and cancels
any and all previous negotiations, arrangements, agreements and understandings, if any, between
the parties, and none shall be used to interpret this Agreement. No amendment to or modification
of this Agreement shall be valid unless mad~ in writing and approved by the Consultant and by
the City Council. The parties agree that this requirement for written modifications cannot be
waived and that any attempted waiver shall be void.
9.5 Severability.
In the event that any one or more of the phrases, sentences, clauses, paragraphs, or
sections contained in this Agreement shall be declared invalid or unenforceable by a valid
01203.0006/622167.3 19
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judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall
not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this
Agreement which are hereby declared as severable and shall be interpreted to carry out the intent
of the parties hereunder unless the invalid provision is so material that its invalidity deprives
either party of the basic benefit oftheir bargain or renders this Agreement meaningless.
9.6 Warranty & Representation of Non-Collusion.
No official, officer, or employee of City has any financial interest, direct or indirect, in
this Agreement, nor shall any official, officer, or employee of City participate in any decision
relating to this Agreement which may affect his/her financial interest or the financial interest of
any corporation, partnership, or association in which (s)he is directly or indirectly interested, or
in violation of any corporation, partnership, or association in which (s)he is directly or indirectly
interested, or in violation of any State or municipal statute or regulation. The determination of
"financial interest" shall be consistent with State law and shall not include interests found to be
"remote" or "non-interests" pursuant to Government Code Sections 1091 or 1091.5. Consultant
warrants and represents that it has not paid or given, and will not pay or give, to any third party
including, but not limited to, any City official, officer, or employee, any money, consideration, or
other thing of value as a result or consequence of obtaining or being awarded any agreement.
Consultant further warrants and represents that (s)he/it has not engaged in any act(s),
omission(s), or other conduct or collusion that would result in the payment of any money,
consideration, or other thing of value to any third party including, but not limited to, any City
official, officer, or employee, as a result of consequence of obtaining or being awarded any
agreement. Consultant is aware of and understands that any such act(s), omission(s) or other
conduct resulting in such payment of money, consideration, or other thing of value will render
this Agreement void and of no force or effect.
Consultant's Authorized Initials ~ 4{tJ
9.7 Corporate Authority.
The persons executing this Agreement on behalf of the parties hereto warrant that (i) such
party is duly organized and existing, (ii) they are duly authorized to execute and deliver this
Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally
bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not
violate any provision of any other Agreement to which said party is bound. This Agreement shall
be binding upon the heirs, executors, administrators, successors and assigns of the parties.
[SIGNATURES ON FOLLOWING PAGE]
01203 .0006/622167.3 20
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date and year first-above written.
ATTEST:
Emily Colborn, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
William W. Wynder; City Attorney
CITY:
CITY OF RANCHO PALOS VERDES, a
municipal corporation
John Cruikshank, Mayor
CONSULTANT:
MULTI W. SYSTEMS ~ INC., a California
corporation
By: L---====-c:s_.............-
Name: W.en Wang
Title: President
~~~~~
Title: Treasurer
Address:
Two corporate officer signatures required when Consultant is a corporation, with one signature required
from each ofthe following groups: 1) Chairman of the Board, President or any Vice President; and 2)
Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT'S
SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE
INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR
OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT'S BUSINESS ENTITY.
01203.0006/6221673 21
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CALIFORNIA ALL-PURPOSE
CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity
of the individual who signed the document to which this certificate is attached, and
not the truthfulness, accuracy, or validity of that document.
State of California }
County of Los Angeles }
On ~'3-A-2 1 ,2020 before me, D A Bonnell, Notary Public----------------U';.; (Here 1nseit name and Iitie ol the officer)
personally appeared W£11 hl8tll~ iJ>1ti{ '3avvlv kJ&Vlj
who proved to me on the basis of s-a sfactory evidende to be the person@))whose
name@ is@ subscribed to the within instrument and acknowledged to me that
he/she~executed the same in his/he~uthorized capacity(@ and that by
his/her~ signature(§) on the instrument the persor@, or the entity upon behalf of
which the person@) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
and official seal.
(Notary Public Seal)
INSTRUCTIONS FOR COMPLETING TillS FORM ADDITIONAL OPTIONAL INFORMATION Thisformcomplieswith currentCaliforniastatutesregardingnotarywordingand,
DESCRIPTION OF THE A TI ACHED DOCUMENT if needed, should be completed and attached to the document. Acknowledgments
from other states may be completed for documents being sent to that state so long
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A-24
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On 2020 before me, personally appeared proved to me on
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01203.0006/622167.3
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A-25
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On 2020 before me, personally appeared , proved to me on
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acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) ori the instrument the persoil(s), or the entity upon behalf of which the 'person(s) acted,
executed the instrument. ' · ·
I certifY under PENALTY OF PERJURY under the laws ofthe State of California that the foregoing paragraph is
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WITNESS my hand and official seal.
Signature:---------------
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01203 ,0006/622167.3
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A-26
EXHIBIT "A"
SCOPE OF SERVICES
I. Consultant will perform the following on:-call sewer pump maintenance and repair
services within Abalone Cove (the Services):
A. Provide on-call services and repair of sewer pump station systems and residential
sewer pumps within Abalone Cove. The servi(.(e and repair services shall include
but are not limited to:. Repl~cing pumps; adjusting floats, replacing failing
components, troubleshooting mechanical and electrical issues, replacing fuses,
and responding to service call ·requests within ari hour.
B. Provide additional on-call services and related materials such as environmental
cleanup, pump drain clearing, and provide replacement parts associated with
sewer syst~ms as ~eeded.
C. Provide yearly preventative maintenance of sewer pump stations as identified
below. Large Pump Stations includes pump stations containing a pump with more
than 6 horse power. Small Pump Stations includes pump stations containing a
pump less than or equal to 6 horse power.
a.
b.
c.
01203.0006/622167.3
i.
ll.
iii.
IV.
v.
Large Pump Station Yearly Maintenance:
Pick up spare pump from City warehouse. Inspect and test it before
installing it into the wet well.
Set up pump lifting devices and prepare for confined space entry at
Large Pump Station.
Remove and disconnect pump that is due for maintenance from pit.
Install and wire the spare pump.
Test pump station for proper operation and automatic level
controller.
Small Pump Station Yearl y Maintenance:
i. . Pick up spare pump from City warehouse. Inspect and test it before
installing it into the wet well. '
u. . Set up pump lifting devices and prepare for confined space entry at
Small Pump Station.
iii. Remove and disconnect pump that is due for maintenance from pit.
iv. Install and wire the ·spare pump.
v . Test pump station for proper operation and automatic level
controller.
Locations of Pump Stations:
A-1
A-27
1. Two (2) Large Pump Station located at the Abalone Cove Park
(5970 Palos Verdes Drive South, Rancho Palos Verdes, CA
90275.) Each of these Large Pump Stations contains a 10 horse
power pump.
ii . Two (2) Large Pump Station at the Sweet Bay Station (13
Sweetbay Road, Rancho Palos Verdes, CA 90275.) Each of these
Large Pump Stations contains a 10 horse power pump.
iii. Two (2) Small Pump Station at the Sweet Bay Station (24
Sweetbay Road, Rancho Palos Verdes, CA 90275). One Small
Pump·station contains a 1.6 horse power pump, and one Small
Pump Station contains a 6 horse power pump.
IV. Two (2) Small Pump Station at Thyme Place (8 Thyme Place,
Rancho Palos Verdes, CA 90275.) Each ofthese Small Pump
Stations contains a 1.6 horse power pump.
II. Consultant must perform all on-call Services in compliance with the following
requirements:
A . Each task shalL be indicated by a written request produced bythe Contract Officer
with a description of the work to be performed, and the time desired for
completion. All tasks shall be carried out in conformity with all provisions of this
Agreement.
B. Consultant must prepare a written description ofthe requested tasks including all
components and subtasks; the costs to perform the task ("Task Budget"), using the
itemized fees in Exhibit C, Schedule of Compensation, whenever a requested task
is provided for in Exhibit C; explain how the cost was determined; and, a
schedule for completion of the task ("Task Completion Date"); which shall all
collectively be referred to as the "Task Proposal".
C. Contract Officer shall in writing approve, modifY or reject the Task Proposal, and
may issue a Notice to Proceed.
D. The task shall be performed at a cost not to exceeding the Task Budget.
E. Consultant shall complete the task and deliver all deliverables to Contract Officer
by the Task Completion Date.
III. As part of the Services, Consultant will prepare and deliver the following tangible
work products to the City:
Not Applicable.
01203.0006/622167.3 A-2
A-28
IV. In addition to the requirements of Section 6.2, during performance of the Services,
Consultant will keep the City updated of the.status of performance by delivering the
following status reports:
A. Via e-mail, a weekly report describing overall health and conditions of each
inspected or repaired pump and expected remaining work life of said pumps.
V. All work product is subject to review a'nd ·acceptance by the City, and must be
revised by the Consultant without additional charge to the City until found
satisfactory and accepted by City.
VI. Consultant will utilize the following personnel to accomplish the Services:
A. Jerry Sandoval: Technician.
B. Adrian Cervantes: Technician.
C. Omar Cervantes: Technician.
012m.ooo6!622167.3 A-3
A-29
EXHIBIT "B"
SPECIAL REQUIREMENTS . '·
(Superseding Contract Boilerplate)
. .-(
[INTENTION ALL~ LEFT BLA:NKJ
01203.0006/622167.3 B-1
A-30
EXHIBIT "C"
SCHEDULE OF COMPENSATION
I. · Consultant shall establish a Task Budget for each Task identifying the subtasks,
based on the time and rates of the personnel performing the subtasks, and itemizing
all materials and equipment utilized and the costs thereof. If payment is to be made
other than at completion of the Services, then the phases of the performance and
percentage of payment due shall also be shown in the Task Proposal.
On-Call Labor and Repair Budget
Regular Bu s iness Hours Off-Business Hours
Mon-Fri 8:00 a.m.-5:00p.m. .. Weekends, holidays: all day
Weekdays 5:00p.m.-8:00a.m
Field Labor and Repairs
-Any work performed
in the City Limits or $85.00/hour $125 .00/hour associated travel time to
reach, or gather
materials for the City. •
Shop Labor and Repairs
-Any work performed
in Consultant's facilities $55.00/hour $80.00/hour
in preparation for City
related repairs.
Annual On-Call Budget $34,000.00 Per Year
Note: 2 hours travel ttme wtll be added to each tnp; btlled at the Field Labor and Repairs rate.
Repair Materials are not included and will be billed separately.
Yearly Preventative Maintenance Cost
Descrintion Rate
Large Pump Stations
Includes labor costs (including shop, clean, $18,000 Per Year for the four Large
disassemble, remove old parts, install new Stations
parts, testing motor and pump integrity, etc.)
and material cost (including mechanical seal,
01203 .0006/622167.3 C-1
A-31
0-rings, gaskets, bearings, oil, etc.).
Small Pump Stations
Includes labor costs (including shop, clean;
disassemble, remov~ old parts, .install new $8,000 Per Year for the four Small Stations
parts, testing motor and pump integrity , etc)
and material cost (including mechanical seal,,
0-rings, gaskets bearings oil, etc.). , · .,
Annual Maintenance Budget $26,000 Per Year
II. The City will compensate Consultant for the Ser-Vices performed upon submission of
a valid invoice. Each invoice is to include:
A. Line items for all the work performed, the number of hours worked, and the
hourly rate.
B. Line items for all materials and equipment properly charged to the Services.
C. Line items for all other approved reimbursable expenses claimed, with supporting
documentation.
D. Line ,items for all approved subcontractor labor, supplies; equipment, materials,
and travel properly charged to the Services.
III. The total compensation for the Services shall not exceed the Contract Sum as
provided in Section 2.1 of this Agreement.
IV. Consultant's billing rates for.all personnel are attached as Exhibit C-1.
NOT APPLICABLE
01203.0006/622167.3 C-2
A-32
EXHIBIT "D"
SCHEDULE OF PERFORMANCE
I. Consultant shall perform the On-Call Services at the request of the Contract Officer
on an as-needed basis as set forth in Exhibit "A".
Consultant shall complete the Annual Preventative Maintenance on all Pump Stations
listed in Exhibit "A" by February 28 of each year.
II. Consultant shall deliver the following tangible work products to the City by the
following dates.
Not Applicable.
III. The Contract Officer may approve extensions for performance of the services in
accordance with Section 3.2.
01203.0006/622167.3 C-3