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HomeMy WebLinkAbout05 - On-Call Emergency Underground Utility RepairsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 5 November 13, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Utilities Department Steve Myrter, Utilities Director 644 -3411 or smyrtera- citv.newport- beach.ca.us SUBJECT: APPROVAL OF PROFESSIONAL SERVICES AGREEMENTS WITH W. A. RASIC AND VALVERDE CONSTRUCTION, INC. FOR ON -CALL EMERGENCY UNDERGROUND UTILITY REPAIRS RECOMMENDATION: Approve Professional Services Agreements with W. A. Rasic Company and Valverde Construction, Inc. for on -call emergency underground utility repairs, and authorize the Mayor and City Clerk to execute the Agreements. DISCUSSION: Background: A request for qualifications for on -call services was requested of W. A. Rasic Company and Valverde Construction, Inc. Due to the nature of an emergency requiring immediate repair work, staff is recommending approval of an on -call agreement with W. A. Rasic Company and Valverde Construction, Inc. to provide "as needed" emergency underground repair services. Services will be performed and billed on a time and material basis, based on the rate sheet shown in Exhibit B. These Agreements will formalize on -call emergency services with both companies and lock prices through June 30, 2008. 1) W. A. Rasic Company is a recognized and well - established underground utility installations contractor. W. A. Rasic Company has experience ranging from constructing municipal water district connections to laying 40,000 If of pipe for the San Bernardino Mountain Pipeline Project.. W. A. Rasic has over 29 years of experience. Staff recommends retaining this company to perform these on -call services. Emergency Underground Utility Repairs - Approval Professional Services Agreements November 13, 2007 Page 2 2) Valverde Construction, Inc. is also a recognized and well- established underground construction contractor installing all underground infrastructures, including sewers, waterlines, storm drains as well as vaults, conduit and cable lines. Valverde Construction has over 30 years. experience. Staff recommends retaining this company to perform these on -call services. Environmental Review: This action requires no environmental review, as it is not a project pursuant to CEQA. Funding Availability: Funding is available in various Maintenance and Operations Water, Wastewater and General Funds (General Services) accounts. Periodically, a Capital Improvement Account will be utilized, as necessary, to facilitate project expediency. Expenditures of more than $30,000 for an individual repair project will require a separate City Council action in accordance with Policy F -14. Prepared by: O& Cindy Ash 4r Administrative Manager Submitted by: Steve Myrfer, Utilities Director Attachments: Agreement with W. A. Rasic Company Agreement with Valverde Construction, Inc. PROFESSIONAL SERVICES AGREEMENT WITH W.A. RASIC CONSTRUCTION FOR ON -CALL EMERGENCY UNDERGROUND UTILITY REPAIRS THIS. AGREEMENT is made and entered into as of this 13th day of November, 2007, by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "City"), and W. A. RASIC CONSTRUCTION COMPANY, INC., a California corporation whose address is 7314 Scout Avenue, Bell Gardens, California, 90201 ( "Contractor"), 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 has a need for on -call assistance for underground utilities services in regards to City infrastructure. C. City desires to engage Contractor to perform on -call underground utilities services in various locations and for various City infrastructure. D. Contractor possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal member of Contractor for purposes of Project shall be David Lee. F. City has solicited and received a proposal from Contractor, has reviewed the previous experience and evaluated the expertise of Contractor, and desires to retain Contractor to render professional services under the terms and conditions set forth 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 above written date, and shall terminate on the 30th day of June, 2008, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Contractor shall provide "On -Call" underground utilities services as described in the Statement of Qualifications attached as Exhibit °A." Upon verbal or written request from the Project Administrator, 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: A (a) A detailed description of the services to be provided; (b) The position of each person to be assigned to perform the services, and the name of the individuals to be assigned, if available; (c) The estimated number of hours and cost to complete the services; (d) The time needed to finish the project. 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. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and the services shall be performed to completion in a diligent and timely manner. The failure by Contractor to perform the services in a diligent and timely manner may result in termination of this Agreement by City. 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 to the other party so that all delays can be addressed. 3.1 Contractor shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) 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. 3.2 For all time periods not specifically set forth herein, Contractor shall respond in the most expedient and appropriate manner under the circumstances, by telephone, fax, hand - delivery or mail. 4. COMPENSATION TO CONTRACTOR 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 Schedule of Billing rates attached hereto as Exhibit "B" and incorporated herein by reference. No rate changes shall be made during the term of this Agreement without the prior written approval of the City. Contractor's compensation for services performed in accordance with this Agreement, including all reimbursable items and subcontractor fees, shall not exceed the fees identified in the Letter Proposal, as approved by the Utilities Department. Any Letter Proposal that sets forth fees in excess of Thirty Thousand Dollars and No Cents ($30,000.00) shall require a separate Professional Service Agreement approved by City Council per Council Policy F -14. 4.1 Contractor shall submit monthly invoices to City describing the work performed the preceding month. Contractor's bills shall include the name of the person and/or classification of employee who performed the work, a brief description of the services performed and/or the specific task in the letter proposal 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) days after approval of the monthly invoice by City staff. 4.2 City shall reimburse Contractor only for those costs or expenses specifically approved in the Letter Proposal. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor. A. The actual costs of subcontractors for performance of any of the services that Contractor agrees to render pursuant to this Agreement and the Letter Proposal, which have been approved in advance by City and awarded in accordance with this Agreement. B. Approved reproduction charges. C. Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 4.3 Contractor shall not receive any compensation for Extra Work 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 Letter Proposal and which the parties did not reasonably anticipate would be necessary. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates set forth in Exhibit B. 5. PROJECT MANAGER 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 Phil Dennis 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. 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. 3 6. 7 8. ADMINISTRATION This Agreement will be administered by the Utilities Department. Steve Myrter shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his/her authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. CITY'S RESPONSIBILITIES In order to assist Contractor in the execution of its responsibilities under this Agreement, City agrees to, where applicable: A. 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. B. Provide blueprinting and other services through City's reproduction company for bid documents. Contractor will be required to coordinate the required bid documents with City's reproduction company. All other reproduction will be the responsibility of Contractor and as defined above. C. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. STANDARD OF CARE 8.1 All of the services shall be performed by Contractor or under Contractor's supervision. Contractor represents that it possesses the professional and technical 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. All services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. 8.2 Contractor represents and warrants to City that it has or shall obtain all licenses, permits, qualifications, insurance and approvals of whatsoever nature that are legally required of Contractor to practice its profession. Contractor further represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any and all licenses, permits, insurance and other approvals that are legally required of Contractor to practice its profession. Contractor shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 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 0 reason of strikes, lockouts,. accidents, or 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. HOLD HARMLESS To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents 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, attorney's 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 work performed or services provided under this Agreement (including, without limitation, defects in workmanship or materials and /or design defects [if the design originated with Contractor]) 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). 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 attorney's 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 the Contractor. 10. BONDING Contractor shall obtain, provide and maintain at its own expense during the term of this Contract: a Labor and Materials Payment Bond in a form acceptable to the City Attorney. The Labor and Materials Payment Bond shall be issued by an insurance organization or surety (1) currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, (2) listed as an acceptable surety in the latest revision of the Federal Register Circular 570, and (3) assigned a Policyholders' Rating A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Kev Rating Guide: Property - Casualty. Contractor shall deliver, concurrently with execution of this Agreement, the Labor and Materials Payment Bond, a certified copy of the "Certificate of Authority' of the Insurer or Surety issued by the Insurance Commissioner, which authorizes the Insurer or Surety to transact surety insurance in the Sate of California. 5 11. 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. 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 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. 12. 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 the Contractor on the Project. 13. 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. 14. PROGRESS Contractor is responsible for keeping the Project Administrator and/or his/her duly authorized designee informed on a regular basis regarding the status and progress of the work, activities performed and planned, and any meetings that have been scheduled or are desired. 15. 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, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. 0 B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. 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. D. Coverage Requirements. 1. Workers' Compensation Coverage. Contractor shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. In addition, Contractor shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. 2. General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. 3. Automobile Liability Coverage. Contractor shall maintain automobile insurance covering bodily injury and property damage for all activities of the 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 for each occurrence. 4. Professional Errors and Omissions Insurance. Contractor shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this 7 Agreement in the minimum amount of One Million Dollars ($1,000,000). D. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: L The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Contractor's operations or services provided to City. Any insurance maintained by City, including any self - insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) days written notice has been received by City. A. Timelv Notice of Claims. Contractor shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Contractor's performance under this Agreement. B. Additional 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. E 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 Consultant. 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 parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Contractor. Assignments of any or all rights, duties or obligations of the Contractor under this Agreement will be permitted only with the express written consent of City. Contractor shall not subcontract any portion of the work to be performed under this Agreement without the written authorization 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 written request. Documents, including drawings and specifications, prepared by Contractor pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed documents for other projects and any use of incomplete documents without specific written authorization from Contractor will be at City's sole risk and without liability to Contractor. Further, any and all liability arising out of changes made to Contractor's deliverables under this Agreement by City or persons other than Contractor is waived against Contractor and City assumes full responsibility for such changes unless City has given Contractor prior notice and has received from Contractor written consent for such changes. 19. COMPUTER DELIVERABLES CADD data delivered to City shall include the professional stamp of the engineer or architect in charge of or responsible for the work. City agrees that Contractor shall not be liable for claims, liabilities or losses arising out of, or connected with (a) the modification or misuse by City, or anyone authorized by City, of CADD E data; (b) the decline of accuracy or readability of CADD data due to inappropriate storage conditions or duration; or (c) any use by City, or anyone authorized by City, of CADD data for additions to this Project, for the completion of this Project by others, or for any other Project, excepting only such use as is authorized, in writing, by Contractor. By acceptance of CADD data, City agrees to indemnify Contractor for damages and liability resulting from the modification or misuse of such CADD data. All original drawings shall be submitted to City in the version of AutoCAD used by City in ".dwg" file format on a CD, and should comply with the City's digital submission requirements for Improvement Plans. The City will provide AutoCAD file for City Title Sheets. All written documents shall be transmitted to City in the City's latest adopted version of Microsoft Word and Excel. 20. 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 authorizes the release of information. 21. INTELLECTUAL PROPERTY INDEMNITY The Contractor shall defend and indemnify City, its agents, officers, representatives and employees against liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in Contractors drawings and specifications provided under this Agreement. 22. RECORDS Contractor shall keep records and invoices in connection with the work 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 to this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City to examine, audit and make transcripts or copies of such records 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 under this Agreement. 23. WITHHOLDINGS City may withhold payment 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 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. 24. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Contractor which result in expense to City greater than what would have resulted if there were not errors or omissions in the work accomplished by Contractor, the additional design, construction and /or restoration expense shall be bome by Contractor. Nothing in this paragraph is intended to limit City's rights under any other sections of this Agreement. 25. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS City reserves the right to employ other Contractors in connection with the Project. 26. CONFLICTS OF INTEREST The 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. 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 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. 27. NOTICES All notices, demands, requests or approvals 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. All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Utilities Department City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92658 -8915 Phone: 949 - 644 -3011 Fax: 949 - 646 -5204 11 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: W. A. Rasic Construction 7314 Scout Avenue Bell Gardens, CA 90201 Phone: 562 - 928 -6111 Fax: 562 - 928 -7339 28. TERMINATION 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, the non - defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. Notwithstanding the above provision, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving 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 and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 29. 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, regulations and permit requirements and be subject to approval of the Project Administrator and City. 30. 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. 12 31. 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. 32. 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. 33. 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. 34. 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. 35. 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. 36. 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 or age. 37. 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. 13 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: By: Ei ---- -- Aaron . Harp, Assistant City Attorney for the City of Newport Beach ATTEST: By: LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH A Municipal Corporation By: Steven Rosansky Mayor for the City of Newport Beach CONTRACTOR: By: (Corporate Officer) Print Name: By: (Financial Officer) Print Name: Attachments: On -Call Professional Services Agreement _ Exhibft A— Statement..nf Qualifications.. Exhibit B — Schedule of Billing Rates 14 f; r, r J r.i _ f t M\ W.A.. R 1 i sE � I.F -^-1 z `F C ne S ) y 4 r —Pt 011 It after t T -1 f AlL tp j -� Wit. f r.r "• f; r, r J r.i _ f t M\ W.A.. R 1 i sE � I.F -^-1 z `F C ne S ) y 4 r —Pt 011 It after t T -1 f AlL tp . F' n security and achievement. 5i a ..� VWN PAM ;Y• (r MR wL v d« n ysr -�� - ='�Byr r F'II l ��1- 'l � w,r .. .✓� .. � " day � a � � P -.ri -tai - ` a "'s,i Q \'y x �j.'+�•.hF t{ i= r t � �'�r2t •rt a.` r�. � a �� j,M -'i�4= .t,i. ;"i° °a . *� A'Y y µ" °.A"�,� e� 1� "�; nT� .� pcµ . \•, rti ��,d•,.�"L `(° °�' F� ti R� t '"'��` iii �r - �� L sx�w ^C y/. 1�'7W!♦ "s v1'e}''. at .mow r�A sm +, er• ;e Ti [i as \ ' �� \\� ]�1; 'F. \i � _h.. �'� °' ��ru1�_.!_r zr• �y 1 -_ �_. "Mir l.i _ .`'.4'•4l al �cdcV. V _(`I .�_.�bi1i \� A., �� �``��" - �`_' � .•tea r �"��,�'�+� ' � k;. 1 r i � � ry P I A '. -5 i fie" �'� / .�.'S !I ���—� � O £1 vl %Yf Fy• j�t' S���9� . r V � r f`f --z - rx i ax r`Ueuk LL �_` l T h l L. ell ¢ k j f rt l f`f --z - rx i ax r`Ueuk LL �_` l T h l L. ell ¢ k j x5tern74i4 nicipxt WAterP1,'5trict: How do you lay 48 -inch welded steel pipe in lengths of 50 -foot sections that weigh in excess of 25,000 lbs. per joint without the access or room to accommodate a crane? Easy. Have W.A. Rasic Construction bring in their Komatsu PC1000 Mass Excavator, which weighs in excess of 225,000 lbs. and has a bucket capacity to fill a large dump truck in one cycle. Due to the enormous size of the Komatsu PC1000 Excavator, it was used not only to excavate the trench but also to lift and lay each joint of pipe at depths ranging from 12 feet to 30 feet deep.. In addition, due to " the tight schedule for project completion, s W.A. Rasic Construction engineered, cut and - -�; fabricated all the fittings and outlets for the \� entire 3.6 mile pipeline. The W.A. Rasic Construction team installed over 19,000 If of J? �Y 48 -inch pipe on this $8 million project. M �, • NONE I 141V" c� IY.A.RASIC COIR STlil C9'IOl no a' � � ri aa� i w� • • October 15, 2007 City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 42663 Attention: Ed Burt Reference: Time and Material Rates Dear Mr. Burt, EXHIFT The attached time and material rates are good through June 30, 2008. Very truly yours, A Matt Grimaldi W. A. Rasic Construction :F t • _ p 7314 Scout Avenue Bell Gardens, llihimla 9t11 N2-928-611 1 phone l state cdntra6t6ft license #A368761 iV.A.NASIC COZY STIiUCT {OIY COST PLUS RATES EFFECTIVE JULY 2007 Southern California Cost Plus rates Apprentice Rates: Apprentice rates as Ilsted above are the highest classification prior to journeyman full scale rates. Billing rate for Apprentice will be based on actual classification. Boundaries of Southern California Cost Plus Rates: consists of the eleven (11) counties of Los Angeles, Inyo, Mono, Orange, Riverside, San Bernardino, Imperial, Venture, Santa Barbara, San Luis Obispo, Kem and in addition: Richardson Rock, Santa Cruz Island, Arch Rock, San Nicholas Island, Catalina Island, San Clemente Island, San Miguel Island, Santa Barbara Island, Santa Rosa Island, Anacapa Island, including the Channel Islands Monument. Rate Scale does not include San Diego County. Markup: Material, subcontractors, subsistence, and outside rentals (including fuel costs), will Overtime Rates: All hours outside regularly constituted shift shall be Engineers - first four (4) hours outside regular shift, and first twelve (12); which are at triple time. n 111 Subsistence: Superintendent- $75.00 /Day, General Travel Time: Billing time will start once the USA Notification: Client is responsible for NOTE: All wage scales presented herein are classifications are available upon request. d ay, All other kx8fi4 per applicable Un>1ionAgreeme end upon their, �*m to the compare- Yacility. IA) notification fvc +all emergency work'. ' k< Fit notice. This?;documerit does nel include all 7374 Scout Avenue Bell Gardens C2tl unla x '562 928 677 7 phone 562- 928 -7339 fi s ie con ens license #A366AII 15 %. abor CRAFT STRAIGHT OVER DOUBLE CRAFT STRAIGHT OVER DOUBLE CRAFTSMAN/CLASS CODE TIME TIME TIME CRAFTSMAN/CLASS CODE TIME TIME TIME CARPENTERS OPERATING ENGINEERS General Foreman CAGF 77.90 109.41 140.93 General Foreman, Appdx. A OEGF 85.09 116.63 148.16 Foreman CAFM 74.68 104.64 134.60 Foreman, Appdx. A OEFM 81.87 111.85 141.83 Journeyman CAJM 6985 97.48 125.10 Group 1, Appdx. A - Oiler OEGI 74.50 100.68 126.86 Apprentice - 8th Period (90 %) CAA8 64.14 89.00 113.86 Group 2, Appdx. A - Oiler OEG2 75.76 102.54 129.33 Group 8, Appdx. A - Universal OEG8 79.15 107.58 136.00 Group 10, Appdx. A - Mechanic OEGM 79.35 107.86 136.38 Group 8, Appdx. B - Crane to 25 Tons OEB8 79.62 108.27 136.92 CEMENT MASONS Group 9, Appdx. B - Crane 25-50 Tons OEB9 79.89 108.67. 137.46 Foreman CMFM 70.55 93.89 11723 Apprentice, GR 8, Appdx A - 6th (90 %) OEA6 73.28 98.86 124.44 Journeyman Commercial CMJC 67.32 89.10 110.88 Journeyman Light Commercial CMJL 60.98 81.23 101.49 F &T Machine Operator CMFT 67.73 89.70 111.68 Apprentice - 8th 6 Mos. (90 %) CMAS 62.80 82.40 102.00 PROJECT MANAGEMENT Project Manager PMPM 119.56 168.23 216.91 Superintendent PMSP 99.05 137.13 175.21 Project Engineer PMPE 78.46 110.41 142.36 LABORERS General Foreman LAGF 65.83 89.19 112.55 Foreman LAFM 64.23 86.81 109.39 Group 1 - General LAGI 57.15 76.31 95.47 TEAMSTERS Group 2 - Chute Man LAG2 58.04 77.62 97.21 Foreman TDFM 66.74 88.08 109.43 Group 3 - Pipeline Backup Man LAG3 58.92 78.93 98.95 GR 2 - 2 Axle TDG2 63.75 83.65 103.56 Group 4 - Pipe Layer. C &S LAG4 61.41 82.63 103.85 GR 3 - 3 Axle TDG3 64.01 84.04 104.07 Group 5 - Blaster IDriller LAG5 61.97 83.47 104.96 GR 5 - Working Truck Driver TDG5 64.31 84.49 104.67 Apprentice - 6th Period (85 %) LAA6 48.40 66.67 84.94 GR 6 - 4 or More Axle TDG6 64.36 84.56 104.77 Subjoumeyman - 4001-6000 Hire. TDA3 50.54 64.16 77.77 Apprentice Rates: Apprentice rates as Ilsted above are the highest classification prior to journeyman full scale rates. Billing rate for Apprentice will be based on actual classification. Boundaries of Southern California Cost Plus Rates: consists of the eleven (11) counties of Los Angeles, Inyo, Mono, Orange, Riverside, San Bernardino, Imperial, Venture, Santa Barbara, San Luis Obispo, Kem and in addition: Richardson Rock, Santa Cruz Island, Arch Rock, San Nicholas Island, Catalina Island, San Clemente Island, San Miguel Island, Santa Barbara Island, Santa Rosa Island, Anacapa Island, including the Channel Islands Monument. Rate Scale does not include San Diego County. Markup: Material, subcontractors, subsistence, and outside rentals (including fuel costs), will Overtime Rates: All hours outside regularly constituted shift shall be Engineers - first four (4) hours outside regular shift, and first twelve (12); which are at triple time. n 111 Subsistence: Superintendent- $75.00 /Day, General Travel Time: Billing time will start once the USA Notification: Client is responsible for NOTE: All wage scales presented herein are classifications are available upon request. d ay, All other kx8fi4 per applicable Un>1ionAgreeme end upon their, �*m to the compare- Yacility. IA) notification fvc +all emergency work'. ' k< Fit notice. This?;documerit does nel include all 7374 Scout Avenue Bell Gardens C2tl unla x '562 928 677 7 phone 562- 928 -7339 fi s ie con ens license #A366AII 15 %. abor W. A. RASIC COZY STRUCTIOIY Equipment Rates Rates Effective July 2007 AIR COMPRESSORS HOURLY RATE Air Compressor 185 CFM w/ tools & hoses $ 1 18.00 Asphalt Spreader Box (variable width) $ 6.00 Asphalt Zipper 26" Width $ 80.00 Emulsion Pot Sprayer $ 18.00 CAT Skid Steer Loader w/ Pavement Grinder & Broom Attachment $ 175.00 Vibratory Asphalt Roller - 3 - 5 Ton $ 25.00 Vibratory Asphalt Roller - 8 Ton $ 40.00 Vibratory Asphalt Roller - 10 Ton $ 50.00 Vibratory Plate 24" Daily rate $ 100.00 Walk Behind Roller 26" Width $ 24.00 BACKHOES HOURLY RATE Case 580 Super M 4X4 $ 38.00 Case 590 Super M 4X4 $ 42.00 CAT 416 B & C $ 36.00 CAT 420 D 4x4 $ 38.00 CAT 430 4x4 $ 39.00 John Deere 310 D & E $ 36.00 John Deere 310 4x4 Turbo $ 38.00 John Deere 310 SE $ 38.00 John Deere 410 E $ 40.00 Compaction Wheel 12" or 18" Wide (for JD 310 or CAT 416 backhoe) $ Compaction Wheel 24" Wide (for Hitachi EX 100 excavator) $ Compaction Wheel 36" Wide (for JD 200 or JD 892 excavator)t, , Vibratory Soil Plate Compactor 18" Wide (for CAT 3?�Excava�), Vibratory Soil Compactor Sheep Foot 33" W dejalk Betamcd Vibratory Soil Compactor w/ Single Shet�oot 40" Wlde(Rle Off) , Wacker (Jumping Jack) =" rpailu -rate (Revised July 2007) 7314 Scout Avenue Bell Gardens, 6.00 9.00 12.00 Page tof 5 Equipment Rates Rates Effective July 2007 Hitachi EX 100 Super (23,600 LBS) $ 55.00 John Deere 200 LC (46,800 LBS) $ 95.00 John Deere 892 D LC (67,050 LBS) $ 117.00 John Deere EX 450 (102,000 LBS) $ 242.00 CAT 320 B (46,300 LBS) $ 95.00 CAT 320 CLU (51,750 LBS) $ 120.00 CAT 325 CL (64,460 LBS) $ 140.00 CAT 330 DL (79,700 LBS) $ 180.00 CAT 245 ME (120,000 LBS) $ 215.00 Komatsu PC 10001-C (222,130 LBS) $ 360.00 CAT Skid Steer Loader $ 30.00 CAT 950 H (44,435 LBS) $ 92.00 John Deere 444 E (21,457 LBS) $ 55.00 John Deere 624 E (29,035 LBS) $ 68.00 John Deere 644 E. (38,800 LBS) $ 76.00 Kawasaki Z80 (36,000 LBS) $ 87.00 Kawasaki ZV90 (51,320 LBS) $ 118.00 Broom / Sweeper - Self Propelled $ 30.00 Concrete Saw - Walk Behind $ 55.00 Forklift 2,600 LB $ 15.00 Forklift 15,000 LB & 16,500 LB $ 40.00 Generator 5 KW $ N. 10.00 Generator 25 KW $ 35.00 Generator 65 & 70 KW $, 50.00 Golf Cart Hydraulic Breaker 1000 LB (for CAT 416 B Backhoe) $ Hydraulic Breaker 4000 LB (for CAT 320 Excavator) Light Tower (4 Lamp) Screen Read RD 40 } A` $ 73.00 Utility Vehicle -Off Road (all uvt ah drive;; Mule or r TVDe) $ 7.00 N. (Revised July 2007) Page 2fiaf 5 :z. Equipment Rates Rates Effective July 2007 Accu -Punch Bore Mole (2" diameter) $ 150.00 Accu -Punch Bore Mole (5 3/4 "" diameter) $ 400.00 Cable Puller (Electric) $ 50.00 Chipping gun / Rivet Buster w/ attachments $ 70.00 Concrete Mixer $ 90.00 Concrete Vibrator $ 100.00 Cut -off Saw / Chain Saw / Skill Saw $ 60.00 Duct Rodder - 1000' $ 100.00 Fan 30" Pedestal Type $ 60.00 Fuel Tank 1000 Gallon - Double Containment $ 52.00 Fusion Machine For HDPE - 4" Diameter max $ 180.00 Gas / Oxygen Monitor $ 100.00 Holiday T -Lock Tester $ 50.00 Hydrostatic Test Pump - 5 HP $ 80.00 Hydrostatic Test Pump - 8 HP $ 125.00 HyTorc - Hydraulic Machine $ 300.00 Impact Wrench 1" Drive (Air Driven) $ 30.00 Jackhammer 70 LB Electric $ 75.00 Laser - Pipe & Slope Type $ 75.00 Light Stand $ 15.00 Manhole Blower $ 40.00 Office Trailer 12'x 32' $ 40.00 Office Trailer 12'x 60' $ 70,00 Pipe Tongs (Up to 24 ") $ 15.00 Pressure Washer $ 50.00 Rotary Hammer / Drill $ 70.00 Sand Blaster $ 175.00 Storage Container 8'x 20' $ 10.00 Tapping Machine (Up To 2 ") Per inch rate"",40 d�u .�:: 25,00 Tripod w/ Harness Water pump 2" w/ Suction Hose & 100 LF of i s W rge t Ot7 Water pump 3 w/ Suction Hose & 1y0 LF of Discharge Water pump 4" w/ Suction Hose & I0T. -LF of Discharge Hose „., ` ' $ 13.00 Water pump 6" w/ Suction HQs. -A1D0 LF of Discha ": -e Hose , =;• $ 175.00 4 n Ng ., . (Revised July 2007) s Page 3 of 5 9, :, ,z Equipment Rates Rates Effective July 2007 Hydraulic Shoring Jack w/ 3' rails (28" to 46 ") Hydraulic Shoring Jack w/ 5' rails (28" to 46 ") Hydraulic Shoring Jack w/ 7' rails (28" to 46 ") Hydraulic Shoring Jack w/ 5' rails (52" to 88 ") Hydraulic Z Shoring w/ 5' rails (52" to 88" Single Ram) Hydraulic Z Shoring w/ 5' rails (52" to 88" Double Ram) Plywood 4'x 8' Sheet 1 1/8" Thick Timbers 4" x 12" x 10'or 3" x 12" x 10' Wide Flange Steel Beams (Various sizes) I Arrow board DAILY RATE Daily rate $ 27.00 Daily rate $ 28.00 Daily rate $ 29.00 Daily rate $ 36.00 Daily rate $ 75.00 Daily rate $ 100.00 Daily rate $ 8.00 Daily rate $ 8.00 Arrow board $ 15.00 Barricade / Delineator / Traffic Cone Daily rate $ 1.00 Barricade w/ Flasher Daily rate $ 2.00 Chain Link Fence Panel 6' x10' Daily rate $ 6.00 Crash Barrels (various sizes) Daily rate $ 4.00 K -Rail 20' length Daily rate $ 7.00 Message Board $ 25.00 Traffic plate 5' x 8' & 6' x 10" Daily rate $ 7.00 Traffic plate 8' x 10' Daily rate $ 8.00 Traffic plate 8' x 15' & 8' x 20' Daily rate $ 15.00 Rumble / Rock / Tire Cleaning Plates 8' x10' Daily rate $ 10.00 Traffic signs Daily rate $ 5.00 TRENCHERS HOURLY RATE Vermeer DT 655 Offset (24", wide, 72" depth) $ 325.00 Vermeer T 850 Offset (42" wide , 144" depth) $ 350.00 Dump Truck Bobtail / Flat Bed Dump Truck Bobtail Paving Dump Truck End Dump Dump Truck Ten Wheel Dump Truck Super 10 Equipment Trailer - Tool Haub Fnuinmant Trailer - Acnhalf Rn (Revised July 2007) Page "f 5 4 200 Ibcap $ Page "f 5 Equipment Rates Rates Effective July 2007 (Equipment Trailer - 20, 000 lb cap $ 10.00 Equipment Trailer - 40, 000 lb cap $ 15.00 Low Bed Haul Truck & Trailer $ 70.00 Pick -up. Truck 1 SUV 1 Van $ 15.00 Pick -up Truck 4x4 (Off Road Only) $ 7.00 Ramp Truck (Backhoe Hauler) $ 25.00 Service Truck $ 22.00 Stakebed Truck $ 20.00 Utility Truck 1 Concrete Form Truck $ 20.00 Water Trailer - 500 Gallon $ 8.00 Water Truck 1500 Gallon $ 27.00 Water Truck 2000 Gallon $ 30.00 Water Truck 2500 Gallon $ 32.00 WELDING EQUIPMENT HOURLY RATE Band Saw - Portable 4" x 4" max cut $ 10.00 Band Saw 6" x 12" max cut $ 15.00 Plasma Cutter $ 20.00 Tig Machine 300 AMP $ 15.00 Tool Package - Group 1 (stainless steel fabrication) Daily rate $ 185.00 Weld 1 Fabrication Portable Shop - Container Daily rate $ 20.00 Welder 200 AMP $ 15.00 (Revised July 2007) x� k X; mtijr �. %;. Page 5t 5 PROFESSIONAL SERVICES AGREEMENT WITH VALVERDE CONSTRUCTION, INC. FOR ON -CALL EMERGENCY UNDERGROUND UTILITY REPAIRS THIS AGREEMENT is made and entered into as of this 13th day of November, 2007, by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "City"), and VALVERDE CONSTRUCTION, INC., a California corporation whose address is 10918 Shoemaker Avenue, Santa Fe Springs, California, 90670 ( "Contractor"), 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 has a need for on -call assistance for underground utilities services in regards to City infrastructure. C. City desires to engage Contractor to perform on -call underground utilities services in various locations and for various City infrastructure. D. Contractor possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal member of Contractor for purposes of Project shall be Edward Valverde. F. City has solicited and received a proposal from Contractor, has reviewed the previous experience and evaluated the expertise of Contractor, and desires to retain Contractor to render professional services under the terms and conditions set forth 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 above written date, and shall terminate on the 30th day of June, 2008, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Contractor shall provide "On -Call" underground utilities services as described in the Statement of Qualifications attached as Exhibit "A." Upon verbal or written request from the Project Administrator, 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: (a) A detailed description of the services to be provided; (b) The position of each person to be assigned to perform the services, and the name of the individuals to be assigned, if available; (c) The estimated number of hours and cost to complete the services; (d) The time needed to finish the project. 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 Time is of the essence in the performance of services under this Agreement and the services shall be performed to completion in a diligent and timely manner. The failure by Contractor to perform the services in a diligent and timely manner may result in termination of this Agreement by City. 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 to the other party so that all delays can be addressed. 3.1 Contractor shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) 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. 3.2 For all time periods not specifically set forth herein, Contractor shall respond in the most expedient and appropriate manner under the circumstances, by telephone, fax, hand - delivery or mail. 4. COMPENSATION TO CONTRACTOR 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. Schedule of Billing rates attached hereto as Exhibit °B° and incorporated herein by reference. No rate changes shall be made during the term of this Agreement without the prior written approval of the City. Contractor's compensation for services performed in accordance with this Agreement, including all reimbursable items and subcontractor fees, shall not exceed the fees identified in the Letter Proposal, as approved by the Utilities Department. Any Letter Proposal that sets forth fees in excess of Thirty Thousand Dollars and No Cents ($30,000.00) shall require a separate Professional Service Agreement approved by City Council per Council Policy F -14. 2 4.1 Contractor shall submit monthly invoices to City describing the work performed the preceding month. Contractor's bills shall include the name of the person and /or classification of employee who performed the work, a brief description of the services performed and /or the specific task in the letter proposal 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) days after approval of the monthly invoice by City staff. 4.2 City shall reimburse Contractor only for those costs or expenses specifically approved in the Letter Proposal. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor: A. The actual costs of subcontractors for performance of any of the services that Contractor agrees to render pursuant to this Agreement and the Letter Proposal, which have been approved in advance by City and awarded in accordance with this Agreement. B. Approved reproduction charges. C. Actual costs and /or other costs and /or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 4.3 Contractor shall not receive any compensation for Extra Work 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 Letter Proposal and which the parties did not reasonably anticipate would be necessary. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates set forth in Exhibit B. 5. PROJECT MANAGER 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 Edward Valverde 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. 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. 3 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 Utilities Department. Steve Myrter shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his/her authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES In order to assist Contractor in the execution of its responsibilities under this Agreement, City agrees to, where applicable: A. 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. B. Provide blueprinting and other services through City's reproduction company for bid documents. Contractor will be required to coordinate the required bid documents with City's reproduction company. All other reproduction will be the responsibility of Contractor and as defined above. C. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. 8. STANDARD OF CARE 8.1 All of the services shall be performed by Contractor or under Contractor's supervision. Contractor represents that it possesses the professional and technical 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. All services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. 8.2 Contractor represents and warrants to City that it has or shall obtain all licenses, permits, qualifications, insurance and approvals of whatsoever nature that are legally required of Contractor to practice its profession. Contractor further represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any and all licenses, permits, insurance and other approvals that are legally required of Contractor to practice its profession. Contractor shall maintain a City of Newport Beach business license during the term of this Agreement. 2 8.3 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, or 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. HOLD HARMLESS To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents 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, attorney's 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 work performed or services provided under this Agreement (including, without limitation, defects in workmanship or materials and /or design defects [if the design originated with Contractor]) 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). 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 attorney's 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 the Contractor. 10. BONDING Contractor shall obtain, provide and maintain at its own expense during the term of this Contract: a Labor and Materials Payment Bond in a form acceptable to the City Attorney. The Labor and Materials Payment Bond shall be issued by an insurance organization or surety (1) currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, (2) listed as an acceptable surety in the latest revision of the Federal Register Circular 570, and (3) assigned a Policyholders' Rating A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Kev Rating Guide: Pror)ertv- Casualtv. Contractor shall deliver, concurrently with execution of this Agreement, the Labor and Materials Payment Bond, a certified copy of the "Certificate of Authority" of a the Insurer or Surety issued by the Insurance Commissioner, which authorizes the Insurer or Surety to transact surety insurance in the Sate of California. 11. 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. 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 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. 12. 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 the Contractor on the Project. 13. 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. 14. PROGRESS Contractor is responsible for keeping the Project Administrator and /or his /her duly authorized designee informed on a regular basis regarding the status and progress of the work, activities performed and planned, and any meetings that have been scheduled or are desired. 15. 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, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by L City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. 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. D. Coverage Requirements. 1. Workers' Compensation Coverage. Contractor shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. In addition, Contractor shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. 2. General Liabilitv Coveraae. Contractor shall maintain commercial general liability insurance in an amount not less than Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury, and properly damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. 3. Automobile Liability Coverage. Contractor shall maintain automobile insurance covering bodily injury and properly damage for all activities of the 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 for each occurrence. 7 4. Professional Errors and Omissions Insurance. Contractor shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this Agreement in the minimum amount of One Million Dollars ($1,000,000). D. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Contractor's operations or services provided to City. Any insurance maintained by City, including any self - insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) days written notice has been received by City. A. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Contractor's performance under this Agreement. B. Additional 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. 3 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 Consultant. 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 parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Contractor. Assignments of any or all rights, duties or obligations of the Contractor under this Agreement will be permitted only with the express written consent of City. Contractor shall not subcontract any portion of the work to be performed under this Agreement without the written authorization 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 written request. Documents, including drawings and specifications, prepared by Contractor pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed documents for other projects and any use of incomplete documents without specific written authorization from Contractor will be at City's sole risk and without liability to Contractor. Further, any and all liability arising out of changes made to Contractor's deliverables under this Agreement by City or persons other than Contractor is waived against Contractor and City assumes full responsibility for such changes unless City has given Contractor prior notice and has received from Contractor written consent for such changes. 19. COMPUTER DELIVERABLES CADD data delivered to City shall include the professional stamp of the engineer or architect in charge of or responsible for the work. City agrees that Contractor shall not be liable for claims, liabilities or losses arising out of, or connected with (a) the modification or misuse by City, or anyone authorized by City, of CADD data; (b) the decline of accuracy or readability of CADD data due to inappropriate storage conditions or duration; or (c) any use by City, or anyone authorized by City, of CADD data for additions to this Project, for the completion of this Project by others, or for any other Project, excepting only such use as is authorized, in writing, by Contractor. By acceptance of CADD data, City agrees to indemnify Contractor for damages and liability resulting from the modification or misuse of such CADD data. All original drawings shall be submitted to City in the version of AutoCAD used by City in ".dwg° file format on a CD, and should comply with the City s digital submission requirements for Improvement Plans. The City will provide AutoCAD file for City Title Sheets. All written documents shall be transmitted to City in the City s latest adopted version of Microsoft Word and Excel. 20. 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 authorizes the release of information. 21. INTELLECTUAL PROPERTY INDEMNITY The Contractor shall defend and indemnify City, its agents, officers, representatives and employees against liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in Contractor's drawings and specifications provided under this Agreement. 22. RECORDS Contractor shall keep records and invoices in connection with the work 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 to this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City to examine, audit and make transcripts or copies of such records 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 under this Agreement. 23. WITHHOLDINGS City may withhold payment 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 10 an immediate right to appeal to the City Manager or his 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. 24. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Contractor which result in expense to City greater than what would have resulted if there were not errors or omissions in the work accomplished by Contractor, the additional design, construction and/or restoration expense shall be bome by Contractor. Nothing in this paragraph is intended to limit City's rights under any other sections of this Agreement. 25. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS City reserves the right to employ other Contractors in connection with the Project. 26. CONFLICTS OF INTEREST The 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. 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 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. 27. NOTICES All notices, demands, requests or approvals 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. All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Utilities Department City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92658 -8915 Phone: 949 - 644 -3011 Fax: 949 - 646 -5204 11 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Edward Valverde Valverde Construction, Inc. 10918 Shoemaker Avenue Santa Fe Springs, CA 90670 Phone: 562 - 906 -1826 Fax: 562- 906 -1918 28. TERMINATION 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, the non - defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. Notwithstanding the above provision, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving 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 and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 29. 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, regulations and permit requirements and be subject to approval of the Project Administrator and City. 30. 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. 12 31. 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. 32. 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. 33. 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. 34. 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. 35. 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. 36, 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 or age. 37. 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. 13 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: By; "n' l.. -- Aaron C. Harp, Assistant City Attorney for the City of Newport Beach ATTEST: LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH A Municipal Corporation Steven Rosansky Mayor for the City of Newport Beach CONTRACTOR: By: (Corporate Officer) Title: Print (Financial Officer) Title: Print Name: Attachments: On -Call Professional Services Agreement ..-Exhibit A —Statement of Qualifications Exhibit B — Schedule of Billing Rates 14 IN WITNESS WHEREOF, the Parties have caused this Agreement to be ex. ecuted on the day and year first written above. APPROVED AS TO FORM: By: �� Ck` Aaron C. Harp, Assistant City Attorney for the City of Newport Beach ATTEST: By: LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH A Municipal Corporation By: Steven Rosansky Mayor for the City of Newport Beach CONTRACTOR: By: (Corporate Officer) Title: Print Name: (Financial Officer) Print Name: Attachments: On -Call Professional Services Agreement Exhibit A.— Statement of Qualifications Exhibit. B — Schedule of Billing Rates 14 WIR ' mm � Your Partner in ftgr6ss MIA Your Partner in ftgr6ss Joe Valverde, President In 1972, 1 formed Valverde Construction, Inc. and began operations as an underground construction contractor with the vision to provide excellent built-on experience. Our General Engineering, Pipeline and Utilities Divisions install all underground infrastructures, including sewers, waterlines, storm drains as well as vaults;: conduit and cable lines. We proudly serve public agencies, major Southern California' utility companies as well as private developers. Our commitment to quality, professional performance, along with an;obligation to safety, has afforded us the privilege of being an approved contriactor with select institutions and major general contractors. From the . early stages of project involvement we develop details to assistin a project's.value, quality, efficiency and safety. We are committed to continued improvement by applying newtechnologies and installation methods, °my' and keeping service and safety toihe community our • ' *, � goal: The original vision and commitment to excellence x continues to be realized. r Construction,`Inc. . Serving California and the West. sao sumcmires , C '• i... ;; T�� i � n +. � �}..c � t' `� F_h� ��F*'�42.yny�"`.e`' C fjict` vy'C f> xritF] -'2= ,2, F 6- c"` a J"_ _1 /..iii ,r s "5� t OPEL , mfr� 6A y4 k fjict` vy'C f> xritF] -'2= ,2, F 6- c"` a J"_ _1 /..iii ,r s "5� t OPEL , mfr� 6A Iv and The Power of Experience r L F, ' The dedicated employees of Valverde. Construction come through. our doors and bring with ihem:a solid work ethic and'a wealth of experience. Theirsupport.of the Valverde concept of teamwork and pride in producing a superior product.for a fair price is what we, have built our reputation on. a 4 Over the years we have established a network with suppliers, vendors, salesperson J I nel and managerswho work with us and offer fair pricing and excellent service. Without our ability to work with each other, the Construction Industry s t would not be the great industry it is today. ,, x� r ,1 TM The Power of Experience r L F, ' The dedicated employees of Valverde. Construction come through. our doors and bring with ihem:a solid work ethic and'a wealth of experience. Theirsupport.of the Valverde concept of teamwork and pride in producing a superior product.for a fair price is what we, have built our reputation on. a 4 Over the years we have established a network with suppliers, vendors, salesperson J I nel and managerswho work with us and offer fair pricing and excellent service. Without our ability to work with each other, the Construction Industry s t would not be the great industry it is today. ,, VALVERDE CONSTRUCTION, INC. Cewral Engineering Contactors License Ne. 276469 10918 SHOEMAKER AVE. SANTA FE SPRINGS, CA 90670 (562) 906 -1826 • FAX: (562) 906 -1918 October 22, 2007 City of Newport Beach 3300 Newport Blvd. P.O. Box 1768 Newport Beach, CA 92658 -8915 Attn: Mr. Ed Burt Re: Emergency Pipeline Repair Services Dear Mr. Burt: Valverde Construction Inc. would like to be added to your list of approved contractors for your emergency pipeline repairprogram. . Attached it our current wage rate schedule and equipment rate schedule for your review. Please note that the wage rate schedule is good through June 30, 2008. If you have any questions or require further information, please contact me directly at (562) 906 -1826 or via electronic mail at edwardv@valverdeconst.com. Thank you for your consideration. I look forward to hearing from you. Sincerely, VALVERDE�CONSTRUCTION, INC. Edward Valverde President Enclosure 1 LABOR RATES 7/1/07 Rates Good Through June 30 2008 10/22/2007 Valverde Construction, Inc. Equipment Rates. Jan 2007 Plus 15% mark up UNIT# EQUIPMENT DESCRIPTION VALVERO Jan -07 ROWBOARDS Rate AB0014 WANCO SOLAR ARROWBOARD 9.38 PER HOUR AB0015 WANCO SOLAR ARROWBOARD 9.38 PER HOUR AB0016 WANCO SOLAR ARROWBOARD 9.38 PER HOUR AB0017 WANCO SOLAR ARROWBOARD 9.38 PER HOUR AB0018 WANCO SOLAR ARROWBOARD 9.38 PER HOUR AB0019 WANCO SOLAR ARROWBO -ARD 9.38 PER HOUR AB0020 NATIONAL SIGNAL MESSAGE BOARD 1 9.001 PER HOUR AB0021 NATIONAL SIGNAL MESSAGE BOARD 9.00 PER HOUR AB0022 NATIONAL SIGNAL MESSAGE BOARD 9.00 PER HOUR AB0023 NATIONAL SIGNAL MESSAGE BOARD 9.00 PER HOUR H BACK HOES BI-10018 CATERPILLAR 416C BACKHOE 29.38 PER HOUR BH0019 CASE 590E BACKHOE 31.25 PER HOUR BH0020 CAT BACKHOE 4301) 2Z001 PER HOUR BH0021 CAT BACKHOE 4466 47.00 PER HOUR BH0022 AT BACKHOE 4466 47.00 PER HOUR BH0023 CAT BACKHOE 4468 47.00 PER HOUR BH0024 CAT BACKHOE 4466 47.00 PER HOUR BH0025 CAT BACKHOE 420D 3200 PER HOUR BH0026 CASE 590S BACKHOE 35.70 PER HOUR CP COMPRESSORS. CP0001 Corn 'r Q175 COMPRESSOR 14.00 PER HOUR CP0002 CompAir Q175 COMPRESSOR 14.00 PER HOUR CP0003 CompAir Q175 COMPRESSOR 14.00 PER HOUR CP0004 CompAir Q175 COMPRESSOR 14.00 PER HOUR CP0005 CompAir Q175 COMPRESSOR 14.00 PER HOUR CP0006 CompAir Q175 COMPRESSOR 14.00 PER HOUR CP0007 CompAir Q175 COMPRESSOR 14.00 PER HOUR CP0008 CompA r 8175 COMPRESSOR 14.00 PER HOUR CP0009 CompAir Q175 COMPRESSOR 14.00 PER HOUR CP0010 CompAir Q175 COMPRESSOR 14.00 PER HOUR FL FORKLIFTS FL0004 CAT DP40K -D 27.00 PER HOUR LD LOADERS LD0006 JOHN DEERE 544H LOADER 55.00 PER HOUR LD0008 JOHN DEERE 444H LOADER 50.00 PER HOUR LD0009 CASE 570 LXT 4WD LOADER 18.13 PER HOUR LT LIGHT TOWERS LT0001 ALLMAND NLPKFMXZ LIGHT TOWER 11.25 PER HOUR LT0002 ALLMAND NLPKFMXZ LIGHT TOWER 11.25 PER HOUR LT0003 ALLMAND NLPKFMXZ LIGHT TOWER 11.25 PER HOUR LT0004 ALLMAND NLPKFMXZ LIGHT TOWER 11.25 PER HOUR LT0005 ALLMAND NL PRO 11.25 PER HOUR PU PUMPS P00002 GRIFFIN 6" TRASH PUMP 22.001 PER HOUR P00003 PT3A 3" 15.63 PER HOUR P00004 MULTIQUIP qP 40TH 4' 15.63 PER HOUR P00005 GRIFFIN 8" DIESEL PUMP 2000 . PER HOUR P00006 HYPRO 314" 52100 -R TEST PUMP 15.63 PER HOUR P00007 HYPRO 34" 521OC -R TEST PUMP 15.63 PER HOUR RO ROLLERS/COMPACTION WHEELS R00001 CATERPILLAR CB224C ROLLER PER HOUR 27.50 R00002 CATERPILLAR 2140 ROLLER 27.50 PER HOUR R00003 54" I/ R SD40FD COMPACTION WHEEL ..,. 12.50 PER HOUR Plus 15% mark up