HomeMy WebLinkAbout04 - As-Needed Sewer Manhole Lining ServicesCITY OF
NEWPORT BEACH
City Council Staff Report
July 22, 2014
Agenda Item No. 4.
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FROM: George Murdoch, Acting Municipal Operations Department Director - (949) 644-
3011, gmurdoch @newportbeachca.gov
PREPARED BY: Rachell Wilfert
PHONE: (949) 644 -3010
TITLE: Approval of On -Call Maintenance Repair Agreement with Zebron Corporation for As-
Needed Sewer Manhole Lining Services
ABSTRACT:
The Municipal Operations Department outsources some sewer manhole lining services to rehabilitate
existing sewer manholes and minimize the opportunity for leaks and damages.
RECOMMENDATION:
Approve the three -year agreement with Zebron Corporation for As- Needed Sewer Manhole Lining Services
for a not to exceed amount of $225,000, and authorize the Mayor and City Clerk to execute the
agreement.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this purchase. It will be expensed to the Sewer
Manhole Lining account in the Municipal Operations Department, 5600 -8185.
DISCUSSION:
Sewer manhole lining is an effective rehabilitation tool to maintain the quality and standard of the City's
sewer manholes. This rehabilitation method is cost effective and less invasive to traffic and residents
compared to a total manhole replacement. The replacement of a ten -foot deep sewer manhole costs on
average between $10,000 and $20,000 and takes three to four days to complete; whereas, a sewer
manhole lining rehabilitation costs on average $2,760 and is completed in one day.
The Municipal Operations Department rehabilitates 12 -15 manholes per year. Due to the success and cost
effectiveness of the lining program the department plans to increase the number of manhole linings to
approximately 20 -25 per year. The previous agreement with Zebron Corporation for sewer manhole lining
services expired earlier this year. On April 15, 2014, the Municipal Operations Department posted a
Request for Proposals for As- Needed Sewer Manhole Lining Services.
Upon receipt and review of the proposals, staff compiled both the technical scores and cost ratio scores for
a total score below.
Rank Proposer Total Score (out of 100)
1 Zebron Corporation 78.67
2 National Coating & Lining, Co. 61.43
3 Sancon Engineering, Inc. 56.98
4 Reddog Technologies 50.16
The evaluation panel ranked Zebron Corporation as the highest -rated proposer. The City has a history of
working with Zebron Corporation and found the company to be competent and effective in these services.
The Municipal Operations Department recommends approval of the Agreement with Zebron Corporation
for As- Needed Sewer Manhole Lining Services. The sewer manhole lining services agreement will be for
three years with a total not to exceed amount of $225,000.
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).
ATTACHMENTS:
Description
Attachment A - On -Call Maintenance Repair Agreement with Zebron Corporation for As- Needed Sewer Manhole Lining
Services
ATTACHMENT A
ON -CALL MAINTENANCE /REPAIR SERVICES AGREEMENT
WITH ZEBRON CORPORATION INC. FOR
AS- NEEDED SEWER MANHOLE LINING SERVICES
THIS ON -CALL MAINTENANCE /REPAIR SERVICES AGREEMENT
( "Agreement') is made and entered into as of this 11th day of July, 2014 ( "Effective
Date "), by and between the CITY OF NEWPORT BEACH, a California municipal
corporation and charter city ( "City "), and Zebron Corporation Inc., a Nevada corporation
( "Contractor'), whose address is P.O. Box 2874 Newport Beach CA 92659, 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 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:
1. TERM
The term of this Agreement shall commence on the Effective Date, and shall
terminate on July 31, 2017, 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;
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 Contractors 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 Two Hundred Twenty Five Thousand Dollars
and 00/100 ($225,000.00), without prior written amendment to the Agreement.
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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
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 Gregory Hex 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.
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
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existing relevant information on file at City. City will provide all such materials in a
timely manner so as not to cause delays in Contractors 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
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 Contractors
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 highest industry standards. 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 and all applicable federal, state and local laws and the industry standard.
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 Contractors 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 Contractors 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 Contractors 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
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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, 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 for 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
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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.
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. 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.
16. 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
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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.
17. 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.
18. 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.
19. 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 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.
20. 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
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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.
21. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS
City reserves the right to employ other contractors in connection with the Project.
22. CONFLICTS OF INTEREST
22.1 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.
22.2 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 Contractors violation of this
Section.
23. NOTICES
23.1 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.
23.2 All notices, demands, requests or approvals from Contractor to City shall
be addressed to City at:
Attn: Wastewater Supervisor
Municipal Operations Department
City of Newport Beach
100 Civic Center Drive
PO Box 1768
Newport Beach, CA 92658
23.3 All notices, demands, requests or approvals from City to Contractor shall
be addressed to Contractor at:
Attn: Gregory Hex
Zebron Corporation Inc
P.O. Box 2874
Newport Beach CA 92659
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24. CLAIMS
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. TERMINATION
25.1 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 party 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.
25.2 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 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.
f3:tl�i1'i�7 :7
26.1 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.).
26.2 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.
26.3 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.
Zebron Corporation Inc Page 9
26.4 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 from loss or damage, including but not limited to attorneys'
fees, and other costs of defense by reason of actual or alleged violations of any
applicable federal, state and local labor laws or law, rules, and /or regulations. This
obligation shall survive the expiration and /or termination of the Agreement.
27. STANDARD PROVISIONS
27.1 Recitals. City and Contractor acknowledge that the above Recitals are
true and correct and are hereby incorporated by reference.
27.2 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.
27.3 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.
27.4 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.
27.5 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.
27.6 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
against either party by reason of the authorship of the Agreement or any other rule of
construction which might otherwise apply.
27.7 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.
27.8 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.
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27.9 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.
27.10 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, religion, color, national origin, handicap,
ancestry, sex, age or any other impermissible basis under law.
27.11 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.
27.12 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]
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IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATT Y'S OFFICE
Date: t
ByQ l
Aaron C. Harp
City Attorney
ATTEST:
Date:
0
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
By:
Rush N. Hill, II
Mayor
CONTRACTOR: Zebron Corporation
Inc, a Nevada corporation
Date:
By:
Roger D. Decker
President
Date:
By:
Gregory Hex
Vice President/Secretary
[END OF SIGNATURES]
Attachments: Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Exhibit C — Insurance Requirements
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EXHIBIT A
SCOPE OF SERVICES
Zebron Corporation Inc Page A -1
SCOPE OF SERVICES
• INTENT
o The intent of these specifications is to provide as- needed sewer manhole lining
services throughout the City of Newport Beach.
• DESCRIPTION OF PROJECT
o The existing wastewater collection system is made up of a network of forcemain
and gravity sewers. This system consists of approximately 197 miles of mainline
gravity pipes, 4.7 miles of forcemains with 4,922 manholes and cleanouts, and
25,525 sewer laterals with an approximate length of 121 miles in the public
rights -of -way. This system requires proper maintenance, and as such, the City
has a need for as- needed manhole sewer lining services to continue the yearly
process of rehabilitating the City's manholes with polyurethane lining
• QUALITY OF WORK AND MATERIALS
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.
• LEVEL OF MAINTENANCE
o All work shall be performed in accordance with the HIGHEST INDUSTRY
STANDARDS, as stated in the enclosed maintenance specification description.
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 level of maintenance 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 the work is performed to City
standard.
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.
• 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 Contract 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 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.
• TECHNICAL MAINTENANCE
The section below details the services requested by the City, at a minimum. The City
realizes that every individual Proposer may have different methodology in regards to
sewer manhole lining services. It is the responsibility of the Proposer to ensure that
their proposed service solution encompasses at least the following services:
o As- needed application of polyurethane lining to all interior concrete surfaces of
sewer manholes and all related processes needed to complete the work, as well
as maintenance of existing sewer manholes, which have been previously lined.
o Contractor shall provide all labor, materials, and equipment necessary for the
scope of work, including, but not limited to: preparation of areas to be lined,
application of primer and lining, prevention of water infiltration, rehabilitation of
channels, troughs and benches, any and all safety procedures, such as
containment, traffic control, etc.
o The lining application shall be performed only by workers approved by the
manufacturer as trained and experienced with the specified material. The lining
shall be applied by high pressure, airless equipment approved by the lining
manufacturer. The equipment shall be of good working order. The lining
application shall follow all proper manufacturer application guidelines.
o At the option of the Project Administrator, the Contractor shall demonstrate the
material on a sample area, which is representative of a job site application.
When approved, the sample area shall serve as a standard for all further work.
o All concrete surfaces to be lined shall be abrasive grit blasted to remove all
laitance and other deleterious material to obtain a clean substrate and a suitable
bonding surface for the polyurethane liner. Any and all debris produced shall be
removed from the manhole prior to coating, and the concrete surfaces shall be
clean and dry prior to primer application.
o Where gunite or mortar placement is required, gunite /mortar shall be applied in
continuous lifts with thicknesses as specified in order to restore dimensions as
specified by Project Administrator. Proper containment devices shall be used to
prevent rebound (non- adhering excess gunite /mortar) from entering the sewer
system. Sewer flows shall be maintained unless otherwise specified. Immediately
following placement, the containment device shall be removed and the manhole
cover reinstalled to provide a moist curing environment. Where moist conditions
are not present, Contractor shall provide a water cure to the gunite /mortar.
o Primer used shall be a 100% solids, moisture tolerant, low temperature cure,
epoxy primer, capable of spray application to 5 millimeter thickness in one
continuous coat. Surface shall be primed to the thickness as specified by the
Project Administrator and /or the manufacturer specifications.
o Polyurethane lining shall be a high -build type capable of application thickness as
specified, without any runs or sags. Lining shall pass ASTM D522 - 93a (2008) for
flexibility using a cylinder mandrel of 0.5 inch (12.7 millimeters). Flash point of
fluid mixture shall be 450 degrees Fahrenheit open Zahn cup. The complete
coating shall be properly applied and cured. Lining shall meet the restive
specifications specified by the Project Administrator, be impermeable to sewer
gases and liquids and be non - conductive to bacterial or fungal growth. The lining
shall be capable of repair at any time during its life, be uniformly white or cream,
in color, and free of pinholes, surface imperfections, and blisters. All areas in
question shall be removed, reworked, and patched. Cured polyurethane lining
shall be spark tested for pinholes with a spark tester set at 15,000 volts
minimum. Pinholes, uncured lining, blisters, and other surface imperfections
shall be repaired per manufacturer specifications. Any warranties provided by
the Contractor and /or lining manufacturer for labor and /or materials shall be
disclosed to the Project Administrator.
EXHIBIT B
SCHEDULE OF BILLING RATES
Zebron Corporation Inc Page B -1
BEST AND FINAL OFFER SOLICITATION
A. Contractor is advised that the prices will enter into the determination of the contract award. Unreasonable
prices may result in rejection of the entire bid proposal. Unit prices listed below refer to all items installed and
include all costs connected with such items; including but not limited to, materials, labor, overhead, and profit
for the Contractor.
B. The percentage quoted by the Contractor shall be those percentage unit prices that will be charged or
credited for labor and materials to be provided regardless of the total number units and /or amount of labor
required for added or deleted items of work.
C. All work shall be performed in accordance with the specifications described in the RFP.
The undersigned certifies that submission of this Proposal is made without prior understanding, arrangement,
agreement, or connection with a corporation, firm or person submitting a Proposal for the some services, and is
in all respects fair and wi[ha trlusion of fraud. The undersigned certifies that they have not entered into Orly
arrangement or ogree9'fent;ivith any City of Newport Beach public officer. The undersigned understands collusive
practices are a viola ion;of State and Federal low and can result in fines, prison sentences, and civil damage
awards. / .' /
Proposer
Printed Name and Title
Date
As- Needed Sewer Manhole
All inclusive? (Please
Lining Services
$ a % Per Vertical Foot
Circle One)
Yes or No
-
;Cost %(Ifmdudedliiabove.pr(ce,
De s;Exceptlon5jgA0ll'
M.thlrnumHour
Se"ro¢ej Ir
- 'denote.wkhyrtndudeil's
;'�-AGC v pE 7
Mobilization
$ /Per:
(Minimum Gallons)
Infiltration /Chemical
$ /Gal
Grouting (Materials)
Infiltration /Chemical
Sr- �C- Ls��GLD
Grouting (Labor)
$ /Hr.
Concrete Rehabilitation
$ /Hr.
StiC�uDE�
Traffic Control
$
The undersigned certifies that submission of this Proposal is made without prior understanding, arrangement,
agreement, or connection with a corporation, firm or person submitting a Proposal for the some services, and is
in all respects fair and wi[ha trlusion of fraud. The undersigned certifies that they have not entered into Orly
arrangement or ogree9'fent;ivith any City of Newport Beach public officer. The undersigned understands collusive
practices are a viola ion;of State and Federal low and can result in fines, prison sentences, and civil damage
awards. / .' /
Proposer
Printed Name and Title
Date
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 officers,
agents, employees and volunteers.
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
Zebron Corporation Inc Page C -1
rented vehicles, in an amount not less than one million dollars
($1,000,000) combined single limit each accident.
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 elected or appointed officers, agents, officials,
employees and volunteers 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 subconsultants.
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 and its officers, officials, employees, and agents 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:
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
Zebron Corporation Inc Page C -2
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.
G. City Remedies for Non - Compliance If Contractor or any sub -
consultant 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.
Zebron Corporation Inc Page C -3
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 Contract, 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.
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.
Zebron Corporation Inc Page C -4