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HomeMy WebLinkAbout26 - As -Needed Pipe Lining ServicesPaR m CITY OF �\`S NEWPORT BEACH cy<`o-P City Council Staff Report June 12, 2018 Agenda Item No. 26 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Steffen Catron, Acting Municipal Operations Director - 949-644- 3011, scatron@newportbeachca.gov PREPARED BY: Joshua Rosenbaum, Senior Management Analyst, jrosenbaum(a)-newportbeachca.gov PHONE: 949-644-3057 TITLE: Approval and Award of Agreement with Sancon Technologies, Inc. for As -Needed Pipe Lining Services ABSTRACT: The City utilizes a contractor to perform as -needed pipe lining services to repair and prevent minor cracks and corrosion to the City's storm drains and wastewater pipelines. The current agreement with Sancon, Inc. (Sancon) expired on May 31, 2018. Staff issued a Request for Proposal (RFP) on March 30, 2018. After review of the proposals, staff recommends award of agreement to Sancon based on technical qualifications, experience, ability to deploy services, and cost. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve the on-call maintenance and repair services agreement (Agreement) with Sancon Technologies, Inc., for as -needed pipe lining services for a term of three years with a total amount not to exceed of $750,000, and authorize the Mayor and City Clerk to execute the Agreement. FUNDING REQUIREMENTS: Sufficient funds for this contract are budgeted annually into numerous maintenance and repair accounts from the water, wastewater, and general funds, as well as the water and wastewater Capital Improvement accounts. 26-1 Approval and Award of Agreement with Sancon Technologies, Inc. for As -Needed Pipe Lining Services June 12, 2018 Page 2 DISCUSSION: The City maintains approximately 96 miles of storm drain pipelines, and 423 miles of sewer collection mains and laterals, that on occasion require repairs or minor rehabilitation short of complete replacement. Cured -In Place Pipe (CIPP) is a trenchless rehabilitation method used to repair existing pipelines and extend the life of the pipe an additional 40 to 60 years. CIPP is jointless and seamless and the application provides minimal disruption to area residents. During the life of the last As -Needed Pipe Lining Services contract, the contractor provided these services for both the Municipal Operations and Public Works Departments. These pipe lining services included; spot repairs from sea water infiltration to the wastewater and storm drain pipelines identified in the Closed -Circuit Television program, and work in easements where digging is difficult and disruptive to residents. Both the Municipal Operations and Public Works have found the pipe lining services to be a cost effective alternative to pipeline replacement. Anticipating the end of the current agreement on May 31, 2018, staff completed the Request for Proposal (RFP) process to find the most qualified and financially reasonable contractor to enter into a new agreement for as -needed pipe lining services. The RFP process used for the selection is detailed below: • On March 30, 2018, the City posted an RFP for As -Needed Pipe Lining Services to provide Cured -In Place Pipe (CIPP) lining services throughout the City's storm drain and wastewater pipelines; • The City received two proposals, including one from the previous contractor; • A proposal review team consisting of three Utilities staff members reviewed and graded the proposals based on technical qualifications, experience, and the proposer's ability to deploy services. This process accounted for 50% of the evaluation criteria; • The proposed price accounted for the remaining 50% of the evaluation criteria. For costing purposes, staff evaluated a variety of possible projects, taking into account different pipe diameter sizes and varying lengths of pipe repaired. Based on Sancon's fixed and variable costs, Sancon had the lowest total cost for all 25 sample projects. Upon combining the scores of the technical and cost reviews, the proposals were ranked as follows: 26-2 Approval and Award of Agreement with Sancon Technologies, Inc. for As -Needed Pipe Lining Services June 12, 2018 Page 3 Evaluation Scoring / Proposers INSITUFORM TECHNOLIGIES, LLC SANCON TECHNOLOGIES, INC Technical Score (out of 50) 40.67 45.50 Cost Ratio Score (out of 50) 30.08 50.00 Aggregate Score (out of 100) 70.75 95.50 Overall Rank 2 1 Upon completion of the evaluation scoring, Sancon Technologies, Inc., ranked highest in both the technical and cost review of the proposals. For the cost score evaluation, Sancon Technologies, Inc. had the lowest total project cost for all 25 sample project cost scenarios. Currently, Sancon Technologies is the firm under contract with the City for as -needed pipe lining services. City staff considers Sancon to be a well-qualified firm as they have performed above satisfactory work for the past three years. To ensure the agreement's obligations and a high level of service continues, the City will review the Contractor's performance on an annual basis. The Agreement has a term of three years with a total amount not -to -exceed $750,000; with $500,000 allocated to the Utilities Department, and $250,000 allocated to the Public Works Department. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — On -Call Maintenance/Repair Services Agreement 26-3 ATTACHMENT A ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT WITH SANCON TECHNOLOGIES, INC. FOR PIPE LINING SERVICES THIS ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT ("Agreement") is made and entered into as of this 12th day of June, 2018 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and SANCON TECHNOLOGIES, INC., a California corporation ("Contractor"), whose address is 5841 Engineer Drive, Huntington Beach, California 92649, and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City desires to engage Contractor to perform on-call maintenance and/or repair services for City ("Project"). C. Contractor possesses the skill, experience, ability, background, certification and knowledge to provide the janitorial maintenance and/or repair services described in this Agreement. D. Contractor has examined the location of all proposed work, carefully reviewed and evaluated the specifications set forth by City for the Project, is familiar with all conditions relevant to the performance of services, and has committed to perform all work required for the compensation specified in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: i�g=l:7►',l The term of this Agreement shall commence on the Effective Date, and shall terminate on June 11, 2021, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED 2.1 Contractor shall perform the on-call services described in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference ("Services" or "Work"). Upon written request from the Project Administrator as defined herein, Contractor shall provide a letter proposal for Services requested by the City (hereinafter referred to as the "Letter Proposal"). The Letter Proposal shall include the following: 2.1.1 A detailed description of the Services to be provided; 2.1.2 The position of each person to be assigned to perform the Services, and the name of the individuals to be assigned, if available; 26-4 and 2.1.3 The estimated number of hours and cost to complete the Services; 2.1.4 The time needed to finish the specific project. 2.2 No Services shall be provided until the Project Administrator has provided written acceptance of the Letter Proposal. Once authorized to proceed, Contractor shall diligently perform the duties in the approved Letter Proposal. 3. TIME OF PERFORMANCE 3.1 Time is of the essence in the performance of Services under this Agreement and Contractor shall perform the Services in accordance with the schedule included in Exhibit A and the Letter Proposal. In the absence of a specific schedule, the Services shall be performed to completion in a diligent and timely manner. The failure by Contractor to strictly adhere to the schedule set forth in Exhibit A and the Letter Proposal, if any, or perform the Services in a diligent and timely manner may result in termination of this Agreement by City. 3.2 Notwithstanding the foregoing, Contractor shall not be responsible for delays due to causes beyond Contractor's reasonable control. However, in the case of any such delay in the Services to be provided for the Project, each party hereby agrees to provide notice within two (2) calendar days of the occurrence causing the delay to the other party so that all delays can be addressed. 3.3 Contractor shall submit all requests for extensions of time for performance in writing to the Project Administrator as defined herein, not later than two (2) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Contractor's control. 3.4 For all time periods not specifically set forth herein, Contractor shall respond in the most expedient and appropriate manner under the circumstances, by fax, hand - delivery or mail. 4. COMPENSATION TO CONTRACTOR 4.1 City shall pay Contractor for the Services on a time and expense not -to - exceed basis in accordance with the provisions of this Section and the Letter Proposal and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise provided herein, no rate changes shall be made during the term of this Agreement without the prior written approval of City. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Seven Hundred Fifty Thousand Dollars and 00/100 ($750,000.00), without prior written amendment to the Agreement. 4.2 Contractor shall submit monthly invoices to City describing the Work performed the preceding month. Contractor's bills shall include the name and/or classification of employee who performed the Work, a brief description of the Services performed and/or the specific task in the Scope of Services to which it relates, the date Sancon Technologies, Inc. Page 2 26-5 the Services were performed, the number of hours spent on all Work billed on an hourly basis, and a description of any reimbursable expenditures. City shall pay Contractor no later than thirty (30) calendar days after approval of the monthly invoice by City staff. 4.3 City shall reimburse Contractor only for those costs or expenses specifically identified in Exhibit B to this Agreement and the Letter Proposal, or specifically approved in writing in advance by City. 4.4 Contractor shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any Work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Compensation for any authorized Extra Work shall be paid in accordance with Exhibit B and the Letter Proposal. 5. PROJECT MANAGER 5.1 Contractor shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Contractor has designated Ryan Helmuth to be its Project Manager. Contractor shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. 5.2 Contractor, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of Services upon written request of City. Contractor warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. 6. ADMINISTRATION This Agreement will be administered by the Municipal Operations Department - Utilities. City's Wastewater Supervisor or designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES To assist Contractor in the execution of its responsibilities under this Agreement, City agrees to provide access to and upon request of Contractor, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Contractor's Work schedule. 8. TYPE AND INSTALLATION OF MATERIALS/STANDARD OF CARE 8.1 Contractor shall use only the standard materials described in Exhibit A in performing Services under this Agreement. Any deviation from the materials described Sancon Technologies, Inc. Page 3 26-6 in Exhibit A shall not be installed or utilized unless approved in advance and in writing by the Project Administrator. 8.2 All of the Services shall be performed by Contractor or under Contractor's supervision. Contractor represents that it possesses the personnel required to perform the Services required by this Agreement, and that it will perform all Services in a manner commensurate with community professional standards and with the ordinary degree of skill and care that would be used by other reasonably competent practitioners of the same discipline under similar circumstances. All Services shall be performed by qualified and experienced personnel who are not employed by City. By delivery of completed Work, Contractor certifies that the Work conforms to the requirements of this Agreement, all applicable federal, state and local laws and legally recognized professional standards. 8.3 Contractor represents and warrants to City that it has, shall obtain and shall keep in full force and effect during the term hereof, at its sole cost and expense, all licenses, permits, qualifications, insurance and approvals of whatsoever nature that is legally required of Contractor to practice its profession. Contractor shall maintain a City of Newport Beach business license during the term of this Agreement. 8.4 Contractor shall not be responsible for delay, nor shall Contractor be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, acts of God, or the failure of City to furnish timely information or to approve or disapprove Contractor's Work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 9. RESPONSIBILITY FOR DAMAGES OR INJURY 9.1 City and all officers, employees and representatives thereof shall not be responsible in any manner for any loss or damage to any of the materials or other things used or employed in performing the Project or for injury to or death of any person as a result of Contractor's performance of the Services required hereunder; or for damage to property from any cause arising from the performance of the Project by Contractor, or its subcontractors, or its workers, or anyone employed by either of them. 9.2 Contractor shall be responsible for any liability imposed by law and for injuries to or death of any person or damage to property resulting from defects, obstructions or from any cause arising from Contractor's Work on the Project, or the Work of any subcontractor or supplier selected by Contractor. 9.3 To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties") 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, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Agreement, any Work performed or Services provided under this Agreement including, without limitation, Sancon Technologies, Inc. Page 4 26-7 defects in workmanship or materials or Contractor's presence or activities conducted on the Project (including the negligent and/or willful acts, errors and/or omissions of Contractor, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). 9.4 Notwithstanding the foregoing, nothing herein shall be construed to require Contractor to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorneys' fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Contractor. 9.5 Contractor shall perform all Work in a manner to minimize public inconvenience and possible hazard, to restore other work areas to their original condition and former usefulness as soon as possible, and to protect public and private property. Contractor shall be liable for any private or public property damaged during the performance of the Work by Contractor or its agents. 9.6 To the extent authorized by law, as much of the money due Contractor under and by virtue of the Agreement as shall be considered necessary by City may be retained by it until disposition has been made of such suits or claims for damages as aforesaid. 9.7 The rights and obligations set forth in this Section shall survive the termination of this Agreement. 10. INDEPENDENT CONTRACTOR It is understood that City retains Contractor on an independent contractor basis and Contractor is not an agent or employee of City. The manner and means of conducting the Work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. No civil service status or other right of employment shall accrue to Contractor or its employees. Nothing in this Agreement shall be deemed to constitute approval for Contractor or any of Contractor's employees or agents, to be the agents or employees of City. Contractor shall have the responsibility for and control over the means of performing the Work, provided that Contractor is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Contractor as to the details of the performance of the Work or to exercise a measure of control over Contractor shall mean only that Contractor shall follow the desires of City with respect to the results of the Services. 11. COOPERATION Contractor agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the Work to be performed. City agrees to cooperate with Contractor on the Project. Sancon Technologies, Inc. Page 5 26.8 12. CITY POLICY Contractor shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Contractor is responsible for keeping the Project Administrator informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings that have been scheduled or are desired. 14. INSURANCE Without limiting Contractor's indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement or for other periods as specified in this Agreement, policies of insurance of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as Exhibit C, and incorporated herein by reference. 15. PREVAILING WAGES 15.1 Pursuant to the applicable provisions of the Labor Code of the State of California, not less than the general prevailing rate of per diem wages including legal holidays and overtime Work for each craft or type of workman needed to execute the Work contemplated under the Agreement shall be paid to all workmen employed on the Work to be done according to the Agreement by the Contractor and any subcontractor. In accordance with the California Labor Code (Sections 1770 et seq.), the Director of Industrial Relations has ascertained the general prevailing rate of per diem wages in the locality in which the Work is to be performed for each craft, classification, or type of workman or mechanic needed to execute the Agreement. A copy of said determination is available by calling the prevailing wage hotline number (415) 703-4774, and requesting one from the Department of Industrial Relations. The Contractor is required to obtain the wage determinations from the Department of Industrial Relations and post at the job site the prevailing rate or per diem wages. It shall be the obligation of the Contractor or any subcontractor under him/her to comply with all State of California labor laws, rules and regulations and the parties agree that the City shall not be liable for any violation thereof. 15.2 Unless otherwise exempt by law, Contractor warrants that no contractor or subcontractor was listed on the bid proposal for the Services that it is not currently registered and qualified to perform public work. Contractor further warrants that it is currently registered and qualified to perform "public work" pursuant to California Labor Code section 1725.5 or any successor statute thereto and that no contractor or subcontractor will engage in the performance of the Services unless currently registered and qualified to perform public work. Sancon Technologies, Inc. Page 6 26.9 16. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the Services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Contractor is a partnership or joint -venture or syndicate or cotenancy, which shall result in changing the control of Contractor. Control means fifty percent (50%) or more of the voting power or twenty-five percent (25%) or more of the assets of the corporation, partnership or joint -venture. 17. SUBCONTRACTING The subcontractors authorized by City, if any, to perform Work on this Project are identified in Exhibit A and the Letter Proposal. Contractor shall be fully responsible to City for all acts and omissions of any subcontractor. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. City is an intended beneficiary of any Work performed by the subcontractor for purposes of establishing a duty of care between the subcontractor and City. Except as specifically authorized herein, the Services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the prior written approval of City. 18. OWNERSHIP OF DOCUMENTS Each and every report, draft, map, record, plan, document and other writing produced (hereinafter "Documents"), prepared or caused to be prepared by Contractor, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Contractor or any other party. Contractor shall, at Contractor's expense, provide such Documents to City upon prior written request. 19. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the Services in this Agreement, shall be kept confidential unless City expressly authorizes in writing the release of information. 20. RECORDS Contractor shall keep records and invoices in connection with the Services to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any Services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Agreement. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of City to examine, audit and make transcripts or Sancon Technologies, Inc. Page 7 26-10 copies of such records and invoices during regular business hours. Contractor shall allow inspection of all Work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. 21. WITHHOLDINGS City may withhold payment to Contractor of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Contractor shall not discontinue Work as a result of such withholding. Contractor shall have an immediate right to appeal to the City Manager or his/her designee with respect to such disputed sums. Contractor shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 22. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS City reserves the right to employ other contractors in connection with the Project. 23. CONFLICTS OF INTEREST 23.1 Contractor or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act"), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the Work performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 23.2 If subject to the Act, Contractor shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Contractor shall indemnify and hold harmless City for any and all claims for damages resulting from Contractor's violation of this Section. 24. NOTICES 24.1 All notices, demands, requests or approvals, including any change in mailing address, to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first- class mail, addressed as hereinafter provided. 24.2 All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Attn: Director of Municipal Operations Department - Utilities Municipal Operations Department City of Newport Beach 100 Civic Center Drive PO Box 1768 Newport Beach, CA 92658 Sancon Technologies, Inc. Page 8 26-11 24.3 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attn: Chuck Parsons Sancon Technologies, Inc. 5841 Engineer Drive Huntington Beach, CA 92649 25. CLAIMS 25.1 Unless a shorter time is specified elsewhere in this Agreement, before making its final request for payment under this Agreement, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Agreement. Contractor's acceptance of the final payment shall constitute a waiver of all claims for compensation under or arising out of this Agreement except those previously made in writing and identified by Contractor in writing as unsettled at the time of its final request for payment. Contractor and City expressly agree that in addition to any claims filing requirements set forth in the Agreement, Contractor shall be required to file any claim Contractor may have against City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 25.2 To the extent that Contractor's claim is a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, the Parties agree to follow the dispute resolution process set forth therein. Any part of such "Claim" remaining in dispute after completion of the dispute resolution process provided for in Public Contract Code section 9204 or any successor statute thereto shall be subject to the Government Claims Act requirements requiring Contractor/Consultant to file a claim in strict conformance with the Government Claims Act. To the extent that Contractor's claim is not a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, Contractor shall be required to file such claim with the City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 26. TERMINATION 26.1 In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that parry shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, and thereafter diligently take steps to cure the default, the non -defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 26.2 Notwithstanding the above provisions, City shall have the right, at its sole and absolute discretion and without cause, of terminating this Agreement at any time by giving no less than seven (7) calendar days' prior written notice to Contractor. In the event of termination under this Section, City shall pay Contractor for Services satisfactorily performed and costs incurred up to the effective date of termination for which Sancon Technologies, Inc. Page 9 26-12 Contractor has not been previously paid. On the effective date of termination, Contractor shall deliver to City all reports, Documents and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 27. LABOR 27.1 Contractor shall conform with all applicable provisions of state and federal law including, but not limited to, applicable provisions of the federal Fair Labor Standards Act ("FLSA") (29 USCA § 201, et seq.). 27.2 Contractor shall comply with all applicable provisions of the California Labor Code, including the Displaced Janitors Opportunity Act (Labor Code §§1060-1065). 27.3 Whenever Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of this Agreement, Contractor shall immediately give written notice to City, and provide all relevant information. 27.4 Contractor represents that all persons working under this Agreement are verified to be U.S. citizens or persons legally authorized to work in the United States. 28. STANDARD PROVISIONS 28.1 Recitals. City and Contractor acknowledge that the above Recitals are true and correct and are hereby incorporated by reference. 28.2 Compliance with all Laws. Contractor shall, at its own cost and expense, comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all Work prepared by Contractor shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 28.3 Waiver. A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 28.4 Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 28.5 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 28.6 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 Sancon Technologies, Inc. Page 10 26-13 against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 28.7 Amendments. This Agreement may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney. 28.8 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. 28.9 Controlling Law and Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 28.10 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, sexual orientation, age or any other impermissible basis under law. 28.11 No Attorneys' Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. 28.12 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. [SIGNATURES ON NEXT PAGE] Sancon Technologies, Inc. Page 11 26-14 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 2,q 1 By: Aaron C. rp Q%W 00-Z411$ City Atto ATTEST: Date: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: Bv: Marshall "Duffy" Duffield Mayor CONTRACTOR: SANCON TECHNOLOGIES, INC., a California corporation Date: By: Chuck Parsons President Date: BV: Gary Drew Vice President 1 Secretary [END OF SIGNATURES] Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates Exhibit C — Insurance Requirements Sancon Technologies, Inc. Page 12 26-15 EXHIBIT SCOPE OF SERVICES Contractor shall perform the following services under this Agreement including but not limited to: • DESCRIPTION OF PROJECT o Furnish all labor, tools, expendable equipment, materials, transportation services necessary for the project and supervision perform cured -in-place pipe ("CIPP") installation services as described herein including, but not limited to, thefollowing: ■ Cleaning of existing storm drains and sewer pipes; ■ Installation of CIPP; ■ Inspection; ■ Testing; and ■ Quality control. o Prior to CIPP installation, clean roots, silt, gravel and other debris from sewer line or storm drain in a manner that does not flush rocks, sand, sludge, dirt, grease or other solid or semi-solid material or debris into downstream sections of the sewer system or storm drains. o May include high pressure hydro -vacuum cleaning, hydro -jetting cleaning, hydro -excavation services, coring services, and similar related services, including but not limited to clean out cast iron pipe and remove dried/hardened concrete from vitrified clay pipe ("VCP"), reinforced concrete pipe ("RCP"), and other pipe materials. o Video inspect sewer, water, and storm drainage pipes to determine the interior condition and location of the pipeline with the use of a video camera or other special pipe inspection equipment. o Provide video of pipe condition before and after the installation of CIPP in DVD -format orflash drive technology to the Project Administrator. The video inspection is not a separate pay item and shall be included in cost of the liner system. o Provide callback within six (6) hours after initial request from the City for pipe lining services. Sancon Technologies, Inc. Page A-1 26-16 o Upon verbal or written request from the Project Administrator, the Contractor shall submit a letter proposal for services requested by the City (hereinafter referred to as the "Letter Proposal"), as set forth in Section 2 of this Agreement. o At its option, the City may authorize Contractor to make any necessary repairs to service lines or piping, provided the City approves such repairs at a rate agreeable to both Contractor and the City prior to the repairs being done. o No services shall be provided until the Project Administrator has provided written acceptance of the Letter Proposal. Once authorized to proceed, Contractor shall diligently perform the duties in the approved Proposal. o Installation includes project management to make sure installation is completed properly. The Contractor shall make every effort to restore service to each connection in a timely manner. o Upon acceptance of the installation work and testing, the Contractor shall restore the project area affected by the operations to a condition at least equal to that existing prior to the work, including the removal of all debris. The Contractor shall dispose of all excess materials and other debris in any right-of-way or ground occupied, and shall restore utilities and improvements on public or private property which have been damaged by the Contractor's operations. This will include, but not be limited to; replacing any items that may be in the way of installation and cleaning up any water. o Contractor shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any Work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Compensation for any authorized Extra Work shall be paid in accordance with Exhibit B and the Letter Proposal. • WORKING HOURS o Normal working hours shall be between the hours of 7:00 a.m. and 4:30 p.m., Monday through Thursday and Friday 7:00 a.m. and 3:30 p.m. No Saturday, Sunday or Holiday work is to be scheduled without prior written permission from the City, unless it is an emergency. o After-hours work (outside of the normal working hours above) may be scheduled in high -traffic business areas at the request of the City. In these special cases, work shall be performed after the businesses in the area have closed for the day. Once job is completed, all equipment shall be cleared from the job site before the first business opens the following morning. Sancon Technologies, Inc. Page A-2 26-17 • QUALITY OF WORK AND MATERIALS o The Contractor shall perform all Work required to be performed, and shall provide and furnish all the labor, materials, necessary tools, expendable equipment and all utility and transportation services necessary for the Project, including delivery, storage and handling of products. o All material and equipment furnished by the Contractor shall be high grade, and free from defects and imperfections, unless otherwise hereinafter specified. Workmanship shall be in accord with the best standard practices. Both materials and workmanship shall be subject to the approval of the Project Administrator. o All work shall be performed in a manner commensurate with community professional standards and with the ordinary degree of skill and care that would be used by other reasonably competent practitioners of the same discipline under similar circumstances. Standards and frequencies may be modified from time to time as deemed necessary by the City for the proper maintenance of the sites. o If, in the judgment of the City, the quality of work is less than that specified herein, the City shall, at its option, in addition to or in lieu of other remedies provided herein, withhold appropriate payment from the Contractor until services are rendered in accordance with specifications set forth within this document and providing no other arrangements have been made between the Contractor and the City. Failure to notify of a change and/or failure to perform an item or work on a scheduled day may, at the City's sole discretion, result in deduction of payment for that date, week, or month. Payment will be retained for work not performed until such time as thework is performed to City standard. o Contractor shall be responsible, at no additional cost to City, for replacing any lining improperly installed and/or for correcting any leaks, couplings, etc., that could reasonably be attributed to the lining installation, if reported by City or customers within thirty (30) days of installation. o The Contractor is required to correct deficiencies within the time specified by the City. If noted deficient work has not been completed, payment for subject deficiency shall be withheld for current billing period and shall continue to be withheld until deficiency is corrected, without right to retroactive payments. M&Taol V A►'J_1:bya I ;JV_1: U�'��1, =11:i1rIRy RI o Contractor shall designate a Project Manager to serve as the main contact for the Contractor throughout the project. The Project Manager shall have the authority to handle and resolve any contract disputes with the City and be experienced in supervising CIPP installation. Sancon Technologies, Inc. Page A-3 26-18 o Contractor shall designate an Installation Supervisor, who shall be responsible for managing the installation on a day-to-day basis and for seeing that all installations are carried out in a professional manner and in compliance with the procedures required by City, Contractor, and all other applicable local, state and federal regulations, including ASTM and OSHA. The Installation Supervisor shall be on site continuously throughout the duration of the project. If the Installation Supervisor is unavailable during working hours, then Contractor shall provide a qualified substitute. o All work shall meet with the approval of the City's designated Project Administrator. Any specific problem area which does not meet the conditions of the specifications set forth herein shall be called to the attention of the Contractor's Project Manager and if not corrected, payment to the Contractor will not be made until condition is corrected in a satisfactory manner as set forth in the specifications. • CERTIFICATION AND QUALIFICATIONS o Contractor shall exhibit, through documentation by records of past performance and references, knowledge of and experience in pipe lining and relining. o Contractor's workers and supervisors who will be providing CIPP services must be trained and certified in CIPP installation. Contractor's Project Manager(s) must have a minimum of firm (2) years of CIPP installation experience. o Contractor's employees must be trained and currently certified in first aid and CPR, and maintain an industrial -type first aid kit in their vehicles at all times. • RESPONSIBILITY FOR DAMAGES OR INJURY o Any damage done by Contractor outside the area and scope of the work of the contract shall be repaired or replaced as directed at no additional cost to the City. o Contractor shall be responsible for any liability imposed by law and for injuries to or death of any person or damage to property resulting from defects, obstructions or from any cause arising from Contractor's Work on the Project, or the Work of any subcontractor or supplier selected by Contractor. • PROJECT ADMINISTRATION o City will assess the Letter Proposal to ensure that services and costs proposed are commensurate with those provided in the Contractor's RFP response. No Services shall be provided until the City has provided written acceptance of the Letter Proposal. Once authorized to proceed, Contractor shall diligently perform the duties in the approved Letter Sancon Technologies, Inc. Page A-4 26-19 Proposal. o No services shall be provided until the Project Administrator has provided written acceptance of the Letter Proposal. Once authorized to proceed, Contractor shall diligently perform the duties in the approved Proposal. o Locations of City project areas will be provided to the Contractor after the award of the contract. The Contractor will work with the Project Administrator to schedule site meetings and repair requests. The Contractor shall be responsible for confirming the locations of all branch service connections prior to installing the Cl PP. • RECORDS o The Contractor shall keep accurate records concerning all of his/her employees or agents. The Contractor shall provide this information in an organizational chart as changes in staffing occur. o Invoices from Contractor shall contain information on work completed by project proposal and location(s). o The Contractor shall permit the City to inspect and audit its books and records regarding services provided to the City during regular business hours. • SAFETY REQUIREMENTS o All work performed under this contract shall be performed in such a manner as to provide maximum safety to the public and where applicable comply with all safety standards required by CAL -OSHA. The City reserves the right to issue restraint or cease and desist orders to the Contractor when unsafe or harmful acts are observed or reported relative to the performance under this contract. All contractor employees shall have access to a W.A.T.C.H. (Work Area Traffic Control Handbook) at all times. o Contractor's field personnel shall wear easily recognizable uniforms containing Contractor's name. Contractor shall be responsible for supplying all appropriate personal protective equipment including but not limited to safety vests, safety shoes and reflective vests. o The Contractor shall maintain all work sites free of hazards to persons and/or property resulting from his/her operations. Any hazardous condition noted by the Contractor, which is not a result of his/her operations, shall be immediately reported to the City. o Warning signs, lights, and devices shall be installed and displayed in conformity with "The California Manual on Uniform Traffic Devices" for use in performance of work upon highways issued by the State of California, Department of Transportation. Sancon Technologies, Inc. Page A-5 26-20 o Contractor's employees shall be trained in health and safety per CALOSHA requirements. • PUBLIC NOTIFICATION o The Contractor shall make every effort to maintain sewer service usage throughout the duration of the project. In the event that a connection will be out of service, the longest period of no service shall be eight (8) hours. In the event service to residents will be affected, the City will notify the residents. Contractor may proceed with the work, but must inform the City when completed so that the City may leave a notice of the completed work on the front door of all affected residents. o Contractor is responsible for setting out temporary "No Parking" signs, no later than 48 -hours before scheduled work. Contractor shall also notify Newport Beach Police Dispatch at (949) 644-3717 for on-site verification. • PAYMENT o The unit price for rehabilitating the sewer or storm drain in the manner described shall be full compensation for all materials, labor, equipment, and incidentals required to install the liner pipe. Payment shall be for actual linear footage of liner pipe installed in the liner pipe installed in the field and shall be measured between the center lines of the manholes. Payment for the liner will also include the cost of sealing the liner in the manholes, reworking the manhole inverts and benches, etc. o Closed circuit television ("CCN") inspection (pre -installation and post rehabilitation), cleaning, and all relevant submittals shall be incidental to the project. The Contractor shall submit all inspection videos in DVD or flash drive technology format(s) to the City for approval prior to payment. Post CCN videos will become property of the City. TECHNICAL SPECIFICATIONS . GENERAL o It is the intent of this specification to provide for the reconstruction of pipelines and conduits by the installation of a resin -impregnated flexible tube, which is tightly formed to the original conduit. The resin is cured using either hot water under hydrostatic pressure or steam pressure within the tube. The cured -in-place pipe ("CIPP") will be continuous and tightfitting. • REFERENCED DOCUMENTS o This specification references American Society for Testing and Materials ("ASTM") standards and other related standards which are made a part hereof by reference and shall be the latest edition thereof: Sancon Technologies, Inc. Page A-6 26-21 ■ AWWA M28 - Cleaning Specification ■ ASTM D5813 & D790 - Resin Properties Specification ■ ASTM F-1216 & F-1743 - Cured -In -Place Pipe Specification ■ ASTM D2990 - Creep And Creep -Rupture Of Plastics • MATERIALS The Tube: o The Tube shall consist of one or more layers of flexible, needled felt or absorbent non -woven felt fabric or an equivalent non -woven material made of polyester, fiberglass cloth or equivalent material suitable for resin impregnation, and meet the standard ASTM requirements. The tube shall be constructed to withstand installation pressures, have sufficient strength to bridge missing pipe, and stretch to fit irregular pipe sections. o The outer tube coating shall consist of a translucent material that allows for visual inspection and verification of proper resin impregnation. The tube used shall be fabricated to a size that, when installed, will tightly fit the internal circumference and the length of the original conduit. The material shall be able to stretch to fit irregular pipe sections and negotiate bends. o The Tube shall have a relatively uniform thickness that when compressed at installation pressures will equal or exceed the calculated minimum design CIPP wall thickness. o The Tube shall be manufactured to a size that when installed will tightly fit the internal circumference and length of the original pipe. Allowance should be made for circumferential stretching during installation. o The outside layer of the Tube shall be coated with an impermeable, flexible membrane that will contain the resin (or equivalent material) and allow the impregnation (wet out) procedure to be monitored. o No material shall be included in the Tube that may cause delamination in the cured CIPP. No dry or unsaturated layers shall be evident. o The wall color of the interior pipe surface of CIPP after installation shall be a relatively light reflective color so that a clear detailed examination with closed circuit television inspection equipment may be made. o Seams in the Tube shall be stronger than the non -seamed felt material. o The Tube shall be marked for distance at regular intervals along its entire length, not to exceed 5 feet. Such markings shall include the manufacturer's name or identifying symbol. Sancon Technologies, Inc. Page A-7 26-22 Resin o The resin system shall be a corrosion resistant polyester or vinyl ester system including all required catalysts, initiators that when cured within the tube create a composite that satisfies the requirements of ASTM F1216, ASTM D5813 and ASTM F1743, the physical properties herein, and those which are to be utilized in the submitted and approved design of the CIPP for this project. The resin shall produce a CIPP that will comply with the structural and chemical resistance requirements of this specification. • TESTING o The Contractor shall perform a performance test of the materials and general workmanship of the installation and curing as defined in ASTM F1216 or ASTM F1743, including chemical resistance, hydraulic capacity and wall thickness. o The watertightness of the cured in place pipe shall be gauged while curing and under a positive head. o These test results must verify that the CIPP physical properties specified in this section have been achieved. o The layers of the cured CIPP shall be uniformly bonded. It shall not be possible to separate any two layers with a probe or point of a knife blade so that the layers separate cleanly or the probe or knife blade moves freely between the layers. If the layers separate during field sample testing, new samples will be required to be obtained from the installed pipe. Any reoccurrence may cause rejection of the work. o The cured pipe material (CIPP) shall conform to the structural properties, as listed below: MINIMUM CIPP PHYSICAL PROPERTIES Cured Polyester Composite Property • INSTALLATION PROCEDURES o A City atlas broken down by route will be provided to Contractor. The City will locate and designate all manhole access points open and accessible for the work, and provide rights -of -access to these locations. If a street Sancon Technologies, Inc. Page A-8 26-23 Test Min. per ASTM Enhanced F1216 Resin Modulus of ASTM D790 250,000 psi 400,000 psi Elasticity Flexural Stress ASTM D790 4,500 psi 4,500 psi • INSTALLATION PROCEDURES o A City atlas broken down by route will be provided to Contractor. The City will locate and designate all manhole access points open and accessible for the work, and provide rights -of -access to these locations. If a street Sancon Technologies, Inc. Page A-8 26-23 must be closed to traffic because of the orientation of the sewer, the City will institute the actions necessary to provide access for the mutually agreed time period. The City shall also provide free access to water hydrants for cleaning, installation and other process related work items requiring water. o Prior to entering access areas such as manholes, and performing inspection or cleaning operations, an evaluation of the atmosphere to determine the presence of toxic or flammable vapors or lack of oxygen must be undertaken in accordance with local, state, or federal safety regulations. o The Contractor shall be responsible for locating all underground utility lines to insure the safety of his/her work crew and to protect existing utility equipment in place before commencing any excavation. Contractor shall contact the Project Manager and Underground Service Alert (www.digalert.org) (1-800-227-2600) before commencing any excavation, to locate underground service lines. o Inspection of Pipelines - Before, or at the time of installation, inspection of pipelines shall be performed under the supervision of the Installation Supervisor by experienced personnel trained in locating breaks, obstacles and service connections using CCTV inspection techniques. The pipeline interior shall be carefully inspected to determine the location of any conditions that may prevent proper installation of CIPP. These shall be noted and corrected. A video recording and suitable written log for each line section shall be produced for later reference by the City. o If the installer determines that conditions are such that damage to the existing piping would result, the Installation Supervisor shall inform the City, shall not attempt the installation until the site is inspected by a Utility representative, and shall postpone installation at that site until the Project Administrator authorizes the Contractor to proceed with the work. The Contractor shall report any plumbing irregularities including but not limited to: meters installed backwards, disconnected meters, and taps located before a meter. o Cleaning of Sewer Lines - The Contractor, when required, shall remove all internal debris out of the sewer line that will interfere with the installation of CIPP. The City shall also provide a dumpsite for all debris removed from the sewers during the cleaning operation. Unless stated otherwise, it is assumed this site will be at or near the sewage treatment facility to which the debris would have arrived in absence of the cleaning operation. Any hazardous waste material encountered during this project will be considered as a changed condition. o Bypassing Sewage - The Contractor, when required, shall provide for the flow of sewage around the section or sections of pipe designated for repair. Plugging the line at an existing upstream manhole and pumping the flow Sancon Technologies, Inc. Page A-9 26-24 into a downstream manhole or adjacent system shall make the bypass. The pump(s) and bypass line(s) shall be of adequate capacity to accommodate the sewage flow. The City may require a detail of the bypass plan to be submitted. o Line Obstructions - It shall be the responsibility of the Contractor to clear the line of obstructions such as solids and roots that will prevent the insertion of CIPP. If pre -installation inspection reveals an obstruction such as a protruding service connection, dropped joint, or a collapse that will prevent the installation process, that was not evident on the pre-bid video and it cannot be removed by conventional sewer cleaning equipment, then the Contractor shall make a point repair excavation to uncover and remove or repair the obstruction. Such excavation shall be approved in writing by the City's representative prior to the commencement of the work and shall be considered as a separate pay item. o At its option, the City may authorize Contractor to make any necessary repairs to service lines or piping, provided Contractor approves such repairs at a rate agreeable to both Contractor and the City prior to the repairs being done. o Contractor shall flush water line after CIPP installation to remove all debris out of the line and ensure the service restoration to the premises. Any location where flushing cannot be accomplished shall be reported to the Project Administrator. o The finished pipe shall be continuous over the entire length of an installation and be free of dry spots, lifts, and delaminations. If these conditions are present, the CIPP will be evaluated for its ability to meet applicable physical requirements. Where the CIPP does not meet specifically stated requirements of the client or engineer the affected portions of CIPP will be removed and replaced with an equivalent repair mutually agreed upon by the City and Contractor. o After the new pipe has been cured in place, the existing active (or inactive) service connections shall be reinstated. This should generally be done without excavation, and in the case of non -man entry pipes, from the interior of the pipeline by means of television camera and a remote control cutting device. • QUALITY CONTROL o Overall, the hydraulic cross-section shall be maintained as large as possible. The CIPP shall have a minimum of the full flow capacity of the original pipe before rehabilitation. Calculated capacities may be derived using a commonly accepted roughness coefficient for the existing pipe material taking into consideration its age and condition. o Contractor shall be responsible for replacing any CIPP improperly installed. Sancon Technologies, Inc. Page A-10 26-25 EXHIBIT B SCHEDULE OF BILLING RATES Price Per Linear Foot Pipe size Less Than 6 6 inch 12 inch 18 inch inch 0 - 100 ft $175.00 $170.001 $175.00 $260.00 101 - 150 ft $75.00 $75.00 $80.00 $115.00 151 - 200 ft $70.00 $70.00 $75.00 $90.00 201 - 250 ft $56.00 $56.00 $64.00 $76.00 250 ft - greater $52.00 $52.00 $60.00 $72.00 Hourly Rates (includes cleaning and CCTV services) Hourly Rate Per person during$160.00 per hour Minimum Hours 4 regular working flours Monday - Thursday (7:00 am - 4:30 pm), Friday (7:00 am - 3:30 pm) After -Hours Rate $210.00 per hour Minimum Hours 4 Monday - Thursday (4:30 pm -7:00 am) Weekend Rate$210.00 per hour Minimum Hours 4 (Begins Friday at 3:30 pm) Holiday Rate $250.00 per hour Minimum Hours 4 Mobilization $1,600.00 (per project) Traffic Control $1,600.00 24 inch $260.00 $130.00 $100.00 $85.00 $85.00 Point of Origin Huntington Beach, CA (City, State) (1 hour response time) Basis: (daily, Daily per project, etc.) Billing Rates Terms & Conditions 1. The pricing indicated above is inclusive of any applicable Prevailing Wages. Sancon Technologies, Inc. Page B-1 26-26 2. In the event additional work or repairs are requested, the above hourly rates will be used. The Contractor shall prepare a quote of the estimated additional hours; no new work shall begin until the Contractor receives approval from the City representative. Sancon Technologies, Inc. Page B-2 26-27 EXHIBIT C INSURANCE REQUIREMENTS — MAINTENANCE/REPAIR/JANITORIAL SERVICES 1. Provision of Insurance. Without limiting Contractor's indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. Contractor agrees to provide insurance in accordance with requirements set forth here. If Contractor uses existing coverage to comply and that coverage does not meet these requirements, Contractor agrees to amend, supplement or endorse the existing coverage. 2. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 3. Coverage Requirements. A. Workers' Compensation Insurance. Contractor shall maintain Workers' Compensation Insurance, statutory limits, and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000) each accident for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its City Council, boards and commissions, officers, agents, volunteers and employees. B. General Liability Insurance. Contractor shall maintain commercial general liability insurance and, if necessary, umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate. The policy shall cover liability arising from premises, operations, products -completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). C. Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit each accident. Sancon Technologies, Inc. Page C-3 26-28 D. Pollution Liability Insurance. If required, Contractor shall maintain a policy providing contractor's pollution liability ("CPL") coverage with a total limit of liability of no less than one million dollars ($1,000,000) per loss and two million dollars ($2,000,000) in the aggregate per policy period. Claims - made policies require a 5 -year extended reporting period. The CPL policy shall include coverage for cleanup costs, third -party bodily injury and property damage, including loss of use of damaged property or of property that has not been physically injured or destroyed, resulting from pollution conditions caused by contracting operations. Coverage as required in this paragraph shall apply to sudden and non -sudden pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids, or gases, waste materials, or other irritants, contaminants, or pollutants. The CPL shall also provide coverage for transportation and off -Site disposal of materials. The policy shall not contain any provision or exclusion (including any so-called "insured versus insured" exclusion or "cross -liability" exclusion) the effect of which would be to prevent, bar, or otherwise preclude any insured or additional insured under the policy from making a claim which would otherwise be covered by such policy on the grounds that the claim is brought by an insured or additional insured against an insured or additional insured under the policy. 4. Other Insurance Requirements. The policies are to contain, or be endorsed to contain, the following provisions: A. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its City Council, boards and commissions, officers, agents, volunteers and employees or shall specifically allow Contractor or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers from each of its subcontractors. B. Additional Insured Status. All liability policies including general liability, products and completed operations, excess liability, pollution liability, and automobile liability, if required, shall provide or be endorsed to provide that City, its City Council, boards and commissions, officers, agents, volunteers and employees shall be included as insureds under such policies. C. Primary and Non Contributory. All liability coverage shall apply on a primary basis and shall not require contribution from any insurance or self-insurance maintained by City. D. Notice of Cancellation. All policies shall provide City with thirty (30) calendar days notice of cancellation (except for nonpayment for which ten (10) calendar days notice is required) or nonrenewal of coverage for each required coverage. 5. Additional Agreements Between the Parties. The parties hereby agree to the following: Sancon Technologies, Inc. Page C-4 26.29 A. Evidence of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. B. City's Right to Revise Requirements. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Contractor sixty (60) calendar days advance written notice of such change. If such change results in substantial additional cost to Contractor, City and Contractor may renegotiate Contractor's compensation. C. Right to Review Subcontracts. Contractor agrees that upon request, all agreements with subcontractors or others with whom Contractor enters into contracts with on behalf of City will be submitted to City for review. Failure of City to request copies of such agreements will not impose any liability on City, or its employees. Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a format at least as broad as CG 20 38 04 13. D. Enforcement of Agreement Provisions. Contractor acknowledges and agrees that any actual or alleged failure on the part of City to inform Contractor of non-compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder. E. 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 Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. F. Self-insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self- insurance will not be considered to comply with these requirements unless approved by City. Sancon Technologies, Inc. Page C-5 26-30 G. City Remedies for Non -Compliance. If Contractor or any subcontractor fails to provide and maintain insurance as required herein, then City shall have the right but not the obligation, to purchase such insurance, to terminate this Agreement, or to suspend Contractor's right to proceed until proper evidence of insurance is provided. Any amounts paid by City shall, at City's sole option, be deducted from amounts payable to Contractor or reimbursed by Contractor upon demand. H. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. I. Contractor's Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. Sancon Technologies, Inc. Page C-6 26-31