Contract - Sancon Engineering Inc - 2015-05-28 CONTRACT
THIS AGREEMENT is made and entered into this 2.6 day of May X. , 2015 by and
between the COSTA MESA SANITARY DISTRICT, hereinafter referred to as "DISTRICT" and
SANCON ENGINEERING, INC., a California corporation, hereinafter referred to as
"CONTRACTOR."
WITNESSETH.
That for and in consideration of the promises and agreements hereinafter made''and
exchanged, DISTRICT and CONTRACTOR mutually agree as follows:
1. Scope of the Work. That CONTRACTOR shall perform all the work and shall
provide and furnish all the labor, materials, necessary tools, expendable equipment, and all
utility and transportation services required to construct:
2. Labor and Materials. All of said work to be performed and materials to be furnished
shall be in strict accordance with the plans and specifications entitled CMSD Project#194 Pump Station
Coating and Manhole Rehabilitation and CONTRACTOR agrees to do everything required by this
Contract and the Contract Documents including the plans and specifications and any general
conditions.
All labor, materials, tools, equipment and services shall be furnished on work performed,
and under the direction, administration and subject to the approval of DISTRICT or its authorized
representatives.
CONTRACTOR warrants that it will not purchase mined construction material for this
PROJECT except from a mining operation that is currently identified in the list published pursuant to
subdivision (b) of Section 2717 of the Public Resources Code. Refer to the current 3098 list for
qualified mining operations at www.consrv.ca.gov/OMR/ab_3098_list/current_list.
3. Time of Completion. CONTRACTOR agrees to commence the work to be performed
under this Contract within five (5) days of receipt of the "Notice to Proceed" and to diligently
prosecute the work to completion before the expiration of 60 working days from the date of
commencement. "Working days" means all calendar days except Saturdays, Sundays, and legal
holidays.
4. Time of the Essence. Time is of the essence of this Contract.
5. Liquidated Damages/Delay Damages. It is agreed by the parties hereto that in case
the total work called for hereunder in all parts and requirements is not finished or completed within
the number of working days as set forth herein, damage will be sustained by the DISTRICT, and
that it is and will be impractical and extremely difficult to ascertain and determine the actual damage
which the DISTRICT will sustain in the event of and by reason of such delay; and it is therefore
agreed the CONTRACTOR will pay to the DISTRICT the sum of TWO HUNDRED FIFTY and
00/100 Dollars ($250.00) per calendar day for each and every day of delay in finishing the work in
excess of the number of days prescribed in paragraph 3 and the CONTRACTOR agrees to pay said
liquidated damages herein provided for, and further agrees that the DISTRICT may deduct the
amount thereof from any monies due or that may become due the CONTRACTOR hereunder.
The CONTRACTOR will be granted an extension of time and will not be assessed with
liquidated damages for any portion of the delay in completion of the work beyond the time named
herein for the completion of the work due to unforeseeable causes beyond the control and without
the fault or negligence of the CONTRACTOR, including but not restricted to acts of God or of the
public enemy, fire, floods, epidemics, quarantine restrictions, strike, and unsuitable weather, or
delays of subcontractors due to such causes, provided CONTRACTOR submits timely notification
and a written Request for Change Order as required herein.
The CONTRACTOR shall within ten (10)days from the beginning of any such delay(unless
the DISTRICT shall grant a further period of time prior to the date of final settlement of the Contract)
notify the District Engineer in writing of the cause of the delay,and the District Engineer shall extend
the time for completing the work if in the District Engineer's judgment the cause so merits. The
District Engineer's determination on this matter shall be final and conclusive on the parties hereto.
CONTRACTOR shall also be required to submit a written Request for Change Order to District
Engineer within fifteen (15)days of the date of such delay. No adjustment shall be allowed for such
delay unless strict compliance with this contractual provision is effected. CONTRACTOR's remedy
shall be limited to the extra days granted and to any damages that he may be entitled to using the
formula agreed to by the parties for all damages as provided in Paragraph 28.
6. The Contract Sum. DISTRICT agrees to pay and CONTRACTOR agrees to accept
in full payment for the work above agreed to be done the sum of: Two Hundred Forty-One
Thousand Eight Hundred Dollars and 00/100 ($241,800.00).
7. Progress Payments. Prior to the fifteenth day of the month next following the
commencement of the work,there shall be paid to CONTRACTOR a sum equal to 90 percent of the
value of the work completed since the commencement of the work as determined by the District
Engineer and thereafter prior to the fifteenth day of each successive month as the work progresses.
CONTRACTOR shall be paid such sum as will bring the payments up each month to 90 percent of
the value of the work completed since the commencement of the work as determined by the District
Engineer, less all previous payments, provided that CONTRACTOR submits his request for
payment prior to the last Wednesday of each preceding month. DISTRICT shall make the final
payment, if unencumbered, or any part thereof unencumbered, 35 days after the acceptance of the
work and the filing of a Notice of Completion. Payments shall be made on demands drawn in the
manner required by law, accompanied by a certificate signed by the District Engineer, stating that
the work for which payment is demanded has been performed in accordance with the terms of the
Contract, and that the amount stated in the certificate is due under the terms of the Contract.
Partial payments on the Contract price shall not be considered as an acceptance of any part of the
work.
8. Prompt Payments. DISTRICT agrees to promptly make progress payments on
undisputed and properly submitted payment requests within thirty(30)days and to comply with the
provisions of Public Contract Code Section 20104.50.
9. Retention Securities. Pursuant to California Contract Code Section 22300,
CONTRACTOR will be entitled to post approved securities with the DISTRICT or an approved
financial institution in order to have the DISTRICT release funds retained by the DISTRICT to insure
performance of the Contract.
10. Specifications. The Standard Specifications for Public Works Construction, also known
as the Greenbook, latest edition, shall be controlling unless a different specification is called out.
The contractor shall also abide by the Costa Mesa Sanitary District's Standard Plans and
Specifications for the Construction of Sanitary Sewers and the Work Area Traffic Control
Handbook (WATCH) latest edition.
11. Change Orders.Change order requests shall be submitted to the District Engineer
in writing who shall have discretion to determine the merit of the change order request.The District
Engineer may approve or disapprove change orders in his discretion except that any change order
resulting in an increase of the Contract price shall be co-signed by the District Manager and/or
approved by the Board of Directors. No amendments, modifications,or waivers of Contract terms
or the Contract Documents, including additional compensation for extra work,will be allowed absent
a written Change Order signed by both parties.
12. Prevailing Wage Rates. DISTRICT has ascertained the general prevailing rate of
per diem wages and the general prevailing rate for legal holidays and overtime work in the locality in
which the work is to be performed for each craft or type of work needed to execute this Contract,
and the same has been placed on file with the District Clerk at the District's principal office. Said per
diem wages can be obtained on the Internet at http://www. dir.ca.gov/dlsr/DPreWageDetermination
htm. Said per diem wages are deemed to include employer payments for health and welfare,
pension, vacation, and travel time and subsistence pay, all in accordance with sections 1773.1 and
1773.8 of the Labor Code of the State of California. No contractor or subcontractor shall be
awarded a contract for a public work unless registered with the Department of Industrial Relations
pursuant to Labor Code Section 1725.5. Contractor agrees to comply with this requirement and to
file his payroll records electronically.
13. Discrimination, Minorities, Aliens. The CONTRACTOR shall not unlawfully
discriminate nor allow its employees,agents, principals,or subcontractors to unlawfully discriminate
against any employee or applicant for employment on the basis of race, religious creed, national
origin or sex.
14. Compliance with Davis-Bacon Act. This provision does not apply to this Contract.
15. Payroll Records. The provisions of section 1776 of the Labor Code of the State of
California regarding the preparation, maintenance and filing of payroll records are applicable to this
Contract. Specifically, each CONTRACTOR and subcontractor shall keep an accurate electronic
payroll record, showing the name,address,social security number,work classification,straight time
and overtime hours worked each day and week, and the actual per diem wages paid to each
journeyman, apprentice or worker employed by him in connection with the public work. THE
CONTRACTOR'S AND SUBCONTRACTOR'S PAYROLL RECORDS SHALL BE SUBMITTED TO
THE DISTRICT ENGINEER FOR REVIEW ON A WEEKLY BASIS. THE CONTRACTOR SHALL
BE RESPONSIBLE FOR SUBMITTAL OF SUB-CONTRACTOR'S PAYROLL RECORDS.
16. Penalty. CONTRACTOR shall, as a penalty to the DISTRICT, forfeit up to$50.00
• for each calendar day or portion thereof for each workman paid (either by him or any subcontractor
under him)less than the prevailing rate set forth herein on the work provided for in this Contract, all
in accordance with section 1775 of the Labor Code of the State of California.
17. Apprentices. If applicable, the provisions of Labor Code Section 1777.5 requiring
the use of apprentices in certain ratios to journeymen are hereby imposed upon CONTRACTOR.
18. Legal Day's Work. In the performance of this Contract, not more than eight (8)
hours shall constitute a day's work, and the CONTRACTOR shall not require more than eight (8)
hours of labor in a day from any person unless the CONTRACTOR complies will all applicable
Labor laws. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7(section 1810, et seq.)of
the Labor Code of the State of California,and it is agreed that the CONTRACTOR shall forfeit to the
DISTRICT as a penalty the sum of $25.00 for each workman employed in the execution of this
Contract by the CONTRACTOR or any subcontractor for each calendar day during which any
workman is required or permitted to labor more than eight (8) hours in any one calendar day and
forty (40) hours in any one week in violation of said article.
19. Subcontracting. CONTRACTOR acknowledges that he is aware of the provisions
of the "Subletting and Subcontracting Fair Practices Act" (Public Contract Code Section 4100 et
seq.)and that he agrees to comply with all applicable provisions thereof. If any part of the work to
be done under this Contract is subcontracted, the subcontract shall be in writing and shall provide
that all work to be performed thereunder shall be performed in accordance with this Contract. Upon
request, certified copies of any or all subcontracts shall be furnished to the District Engineer or
DISTRICT. The subcontracting of any or all of the work to be done will in no way relieve the
CONTRACTOR of any part of his responsibility under the Contract. Breach of any of the above
provisions will be considered a violation of the Contract, and the DISTRICT may: cancel the
Contract, assess the CONTRACTOR a penalty of not more than 10 percent of the subcontract
involved, or cancel the Contract and assess the penalty.
All persons engaged in the work, including subcontractors,will be considered employees of
the CONTRACTOR. He will be held responsible for their work. The DISTRICT will deal directly
with and make all payments to the CONTRACTOR.
20. Workers' Compensation. CONTRACTOR shall carry Workers' Compensation
Insurance and require all subcontractors to carry Workers'Compensation Insurance as required by
the Labor Code of the State of California. CONTRACTOR, by executing this Contract, hereby
certifies:
"I am aware of the provisions of Section 3700 of the Labor Code
which require every employer to be insured against liability for
Workers' Compensation or to undertake self-insurance in
accordance with the provisions of that code, and I will comply with
such provisions before commencing the performance of the work of
this Contract."
21. Drug-Free Work. CONTRACTOR agrees to provide a drug-free workplace in
accordance with 24 CFR part 24, sub-part F. Under 24 CFR part 24 sub-part F., the
CONTRACTOR will provide certification in writing that it willprovide a drug-free workplace by:
(a). Publicizing a statement notifying employees that the unlawful manufacture, distribution,
dispensing, possession or use of a controlled substance is prohibited in the workplace and
specifying the action it will take against employees for violation of such prohibition;
(b). Establish an ongoing drug-free awareness program to inform employees about-
1. Degrees of drug abuse in the workplace;
2. The policy of maintaining a drug-free workplace;
3.Any available drug counseling, rehabilitation and employee assistance programs;
4. The penalties which may be imposed on employees for drug abuse violations
occurring in the workplace.
(c). Making it a requirement that every employee to be engaged in the performance of the
Contract be given a copy of the statement required by paragraph (a);
(d). Notifying employees in the statement required by paragraph (a)that as a condition of
employment under the Contract the employee will -
1. Abide by the term of the statement; and
2. Notify the employer in writing of any conviction for a violation of a criminal drug
statute occurring in the workplace no later than five (5) calendar days after such
conviction.
(e). Notify the DISTRICT in writing,within ten (10)calendar days after receiving notice under
subparagraph (d) (2) from an employee or otherwise receiving actual notice of such
conviction. Employer of said convicted employee must provide notice, including conviction
title, to the DISTRICT;
(f). Taking one of the following actions, within thirty (30) calendar days of receiving notice
under subparagraph (d) (2), with respect to any employee who is so convicted -
1. Taking appropriate action against such an employee, up to and including
termination, consistent with the requirements of the Rehabilitation Act of 1973, as
amended; or
2. Requiring such employee to participate satisfactorily in a drug abuse assistance
or rehabilitation program approved for such purposes by a Federal, State or local
health, law enforcement, or other appropriate agency.
(g). Making a good faith effort to continue to maintain a drug-free workplace through
implementation of paragraphs (a), (b), (c), (d), (e) and (f).
22. Bonds. CONTRACTOR shall, prior to the execution of the Contract, furnish bonds
approved by DISTRICT, one in the amount of one hundred percent(100%)of the Contract price,to
guarantee the faithful performance of the work, and the other in the amount of one hundred percent
(100%)of the Contract price to guarantee payment of all claims for labor and materials furnished.
This Contract shall not become effective until such bonds are supplied to and approved by
DISTRICT. All bonds shall be issued by an admitted surety insurer and the DISTRICT reserves the
right to object to any such surety, in accordance with Code of Civil Procedure Section 995.660.
23. CONTRACTOR'S Affidavit. After the completion of the work contemplated by this
Contract, CONTRACTOR shall file with the District Engineer his affidavit stating that all workmen
and persons employed, all firms supplying materials, and all subcontractors upon the project have
been paid in full, and that there are no claims outstanding against the project for either labor or
material,except certain items, if any,to be set forth in an affidavit covering disputed claims,or items
in connection with a Notice to Withhold, which have been filed under the provisions of the statutes
of the State of California.
24. CONTRACTOR'S Waiver. CONTRACTOR agrees to execute a Final Close Out
Agreement and Release of All Claims. The execution by CONTRACTOR of the Final Close Out
Agreement and Release of All Claims shall constitute a waiver of all claims against DISTRICT
under or arising out of this Contract unless otherwise stated in said document.
25. Notice to Proceed. No work, services, material or equipment shall be performed or
furnished under this Contract unless and until a "Notice to Proceed" has been given to the
CONTRACTOR by the District Engineer and all bonds and certificates of insurance required
pursuant hereto have been furnished to and approved by DISTRICT.
26. Termination.
A. If CONTRACTOR should fail to comply with any of the provisions hereof, or in
the event CONTRACTOR should become the subject of a proceeding under state or federal law for
relief of debtors, or if CONTRACTOR makes an assignment for the benefit of creditors, DISTRICT
shall have the right to hold CONTRACTOR in default and cancel this Contract in whole or in part.
B. Should CONTRACTOR, at any time during the progress of the work, refuse or
neglect to supply sufficient material or labor, or fail to comply with any provision of this Contract,
DISTRICT shall have the right, without prejudice to any other right or remedy it may have, to
provide such materials and labor, or make good such deficiencies as DISTRICT may deem
expedient after three (3) days notice in writing, delivered or mailed to CONTRACTOR at his last
address on file with DISTRICT, and CONTRACTOR shall be liable for the cost and expense thereof
which may be deducted by DISTRICT from any money that may be due CONTRACTOR.
C. Without limiting any rights which DISTRICT may have by reason of any default by
CONTRACTOR hereunder, DISTRICT reserves the right to terminate this Contract in whole or in
part at its convenience. In such event DISTRICT shall compensate CONTRACTOR, subject to
deduction for previous payments(i)by reimbursing CONTRACTOR for all actual expenditures and
costs incurred in performing under this Contract (ii) by reimbursing CONTRACTOR for all
expenditures made and costs incurred with DISTRICT'S prior written approval in settling or
discharging outstanding commitments entered into by CONTRACTOR in performing under this
Contract and (iii) by paying CONTRACTOR as a profit, insofar as a profit is realized hereunder, an
amount equal to the profit on the entire Contract estimated at the time of termination, multiplied by
the percentage of completion of the work. In no event, however, will the compensation to
CONTRACTOR exceed the total Contract price less payments previously made and less the
Contract price of work not terminated. Upon receipt of any notice of termination, CONTRACTOR
shall, unless the notice otherwise directs, (i)immediately discontinue the work and the placing of all
orders and subcontracts in connection with this Contract, (ii)immediately cancel all existing orders
and subcontracts made hereunder and (iii)immediately transfer to DISTRICT all materials,supplies,
work-in-process,appliances,facilities,equipment, machinery and tools acquired by CONTRACTOR
in connection with the performance of this Contract.
27. CONTRACTOR'S Independent Investigation. No plea of ignorance of conditions
that exist or that may hereafter exist, or of conditions or difficulties that may be encountered in the
execution of the work under this Contract, as a result of failure to make the necessary independent
examinations and investigations,and no plea of reliance on initial investigations or reports prepared
by District Engineer and/or DISTRICT for purposes of letting this Contract out to bid, will be
accepted as an excuse for any failure or omission on the part of the CONTRACTOR to fulfill in
every detail all requirements of the Contract Documents. Nor will such reasons be accepted as a
basis for any claims whatsoever for extra compensation or for an extension of time.
28. Damages/Extra Work Compensation. The parties have agreed to modify the
formula for damages set forth in the Standard Specifications for Public Works Construction. The
parties agree that the damage formula shall be used to measure all of CONTRACTOR's damages
or extra work required by this job. CONTRACTOR shall be limited to the following:
Direct costs Mark-up
Labor 20%
Materials 15%
Equipment Rental 15%
Other Items 15%
Subcontracted work 10% (first$5000)
Subcontracted work 5% (work in excess of first $5000)
Specialty Subcontracting
(required by extra work) 5% (Provided at least three
competitive bids are obtained
and contractor selected the
lowest bidder)
Excluded from recovery shall be so-called "Eichleay damages" including, but not limited to,
home office overhead, insurance and bonding costs, lost bonding capacity, lost profits, and lost
interest.
CONTRACTOR acknowledges that his recovery for damages or extra work is limited as
provided in this paragraph.
CONTRCR's
Initials
29. Other Documents Included. It is further agreed by the parties hereto that the
following documents are incorporated into this Contract by reference and are to be read and
construed together as the full, complete and integrated terms of this Contract:
A. Notice Inviting Bids
B. Supplementary Bid Addenda or Bulletins, if applicable
C. Proposal Packet
D. Standard Specifications for Public Works Construction "Greenbook," latest
edition
E. Costa Mesa Sanitary District Standard Plans and Specifications for the
Construction of Sanitary Sewers
F. Construction Plans and Specifications for CMSD Project#194
G. Standard Drawings (Costa Mesa Sanitary District Drawings
and City of Costa Mesa Drawings)
H. Soils Report (omitted)
(. City of Costa Mesa Encroachment Permit
J. Faithful Performance Bond
K. Payment Bond
L. Approved Change Orders, if applicable
M. Contractor's Affidavit
N. Final Closeout Agreement and Release of All Claims
The documents listed in this Paragraph, including this Contract, shall be known and referred
to collectively as the "Contract Documents."
30. Interpretation. In the event of any conflict, inconsistency or incongruity between the
provisions of this Contract and the provisions of any of the Contract Document(s) referenced in
Paragraph 29 hereof, or amendments thereto, the provisions of this Contract shall control in all
respects.
31. Attorney's Fees. In any action or proceeding brought by either party against the
other party arising out of or in any way connected to this Contract, or where any provision hereof is
validly asserted as a defense,the parties shall bear their own attorney's fees,costs, and expenses.
Nothing in this provision shall excuse CONTRACTOR's duty to provide DISTRICT with a defense at
CONTRACTOR's cost when DISTRICT receives a complaint, petition, or other pleading from the
third party requiring DISTRICT to defend itself. Notwithstanding the foregoing, costs and attorneys
fees shall be available pursuant to Code of Civil Procedure Section 386.6 in connection with an
interpleader.
32. Additional Costs. CONTRACTOR shall be responsible to reimburse DISTRICT a
sum equal to the expenses of administration and legal services required to be expended by
DISTRICT in processing Notices to Withhold, Stop Notices,or similar legal documents arising out of
a failure of the CONTRACTOR to pay for labor or materials. Said obligation shall be provided for in
the payment bond required by the CONTRACTOR. The DISTRICT shall further have the right to
offset any such costs and expenses incurred by DISTRICT against any sums owing to
CONTRACTOR.
33. Insurance. CONTRACTOR agrees to provide insurance in accordance with the
requirements set forth herein. If CONTRACTOR uses existing coverage to comply with these
requirements and that coverage does not meet the requirements set forth herein, CONTRACTOR
agrees to amend, supplement or endorse the existing coverage to do so. The following coverages
will be provided by CONTRACTOR and maintained on behalf of the DISTRICT and in accordance
with the requirements set forth herein.
Commercial General Liability/Umbrella Insurance. Primary insurance shall be provided on ISO-
CGL form No. CG 00 01 11 85 or 88 or equivalent, as determined by District Counsel. Total limits
shall be no less than one (1) million dollars per occurrence for all coverages and three (3) million
dollars general aggregate. DISTRICT and its employees and agents shall be added as additional
insured using ISO additional insured endorsement form CG 20 10 with an edition date prior to 1992
or equivalent, as determined by District Counsel. Coverage shall apply on a primary non-
contributing basis in relation to any other insurance or self-insurance, primary or excess, available
to DISTRICT or any employee or agent of DISTRICT. Coverage shall not be limited to the vicarious
liability or supervisory role of any additional insured. Umbrella Liability Insurance (over primary)
shall apply to bodily injury/property damage, personal injury/advertising injury, at a minimum, and
shall include a "drop down" provision providing primary coverage above a maximum $25,000.00
self-insured retention for liability not covered by primary policies but covered by the umbrella policy.
Coverage shall be on the following form to any underlying coverage. Coverage shall be provided
on a"pay on behalf" basis,with defense costs payable in addition to policy limits. There shall be no
cross liability exclusion. Policies shall have concurrent starting and ending dates. District Counsel
shall have the authority to make determinations on the acceptability of forms of insurance coverage.
A determination that the form of coverage is not acceptable shall cause the award to go to the next
lowest responsible bidder.
Business Auto/Umbrella Liability Insurance. Primary coverage shall be written on ISO Business
Auto Coverage form CA 00 01 06 92 including symbol 1 (Any Auto)or equivalent, as determined by
District Counsel. Limits shall be no less than one (1) million dollars per accident. Starting and
ending dates shall be concurrent. If CONTRACTOR owns no autos, a non-owned auto
endorsement to the General Liability policy described above is acceptable.
Workers'Compensation/Employers' Liability shall be written on a policy form providing workers'
compensation statutory benefits as required by law. Employers' liability limits shall be no less than
one (1) million dollars per accident or disease. Employers' liability coverage shall be scheduled
under any umbrella policy described above. Unless otherwise agreed,this policy shall be endorsed
to waive any right of subrogation as respects the DISTRICT, its employees or agents.
CONTRACTOR and DISTRICT further agree as follows:
1. This Section supersedes all other sections and provisions of this Contract to the extent that
any other section or provision conflicts with or impairs the provisions of this Section.
2. Nothing contained in this Section is to be construed as affecting or altering the legal status
of the parties to this Contract. The insurance requirements set forth in this Section are
intended to be separate and distinct from any other provision in this Contract and shall be
interpreted as such.
3. All insurance coverage and limits provided pursuant to this Contract shall apply to the full
extent of the policies involved, available or applicable. Nothing contained in this Contract or
any other agreement relating to the DISTRICT or its operations limits the application of such
insurance coverage.
4. 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 and is not intended by any party to be all
inclusive, or to the exclusion of other coverage, or a waiver of any type.
5. For purposes of insurance coverage only, this Contract will be deemed to have been
executed immediately upon any party hereto taking any steps that can be deemed to be in
furtherance of or towards, performance of this Contract.
6. All general or auto liability insurance coverage provided pursuant to this Contract, or any
other agreements pertaining to the performance of this Contract, shall not prohibit
CONTRACTOR, and CONTRACTOR'S employees, or agents, from waiving the right of
subrogation prior to a loss. CONTRACTOR hereby waives all rights of subrogation against
DISTRICT.
7. Unless otherwise approved by DISTRICT, CONTRACTOR'S insurance shall be written by
insurers authorized to do business in the State of California and with a minimum "Best's"
Insurance Guide rating of"A:VII". Self-insurance will not be considered to comply with these
insurance specifications.
8. In the event any policy of insurance required under this Contract does not comply with these
requirements or is canceled and not replaced, DISTRICT has the right but not the duty to
• obtain the insurance it deems necessary and CONTRACTOR will promptly reimburse any
premium paid by DISTRICT.
9. CONTRACTOR agrees to provide notarized evidence of the insurance required herein,
satisfactory to DISTRICT, consisting of certificate(s) of insurance evidencing all of the
coverages required and an additional insured endorsement to CONTRACTOR'S general
liability and umbrella liability policies (if any) using ISO form CG 20 10 with an edition prior
to 1992 or equivalent, as determined by the District Counsel. Certificate(s)are to reflect that
the insurer will provide 30 days notice of any cancellation of coverage. CONTRACTOR
agrees to require its insurer to modify such certificates of any cancellation of coverage.
CONTRACTOR agrees to require its insurer to modify such certificates to delete any
exculpatory wording stating that failure of the insurer to mail written notice of cancellation
imposes no obligation, and to delete the word "endeavor" with regard to any notice
provisions. CONTRACTOR agrees to provide complete copies of policies to DISTRICT
upon request.
10. CONTRACTOR shall provide proof that policies of insurance required herein expiring during
the term of this Contract have been renewed or replaced with other policies providing at
least the same coverage. Such proof will be furnished within 72 hours of the expiration of
the coverages.
11. Any actual or alleged failure on the part of DISTRICT or any other additional insured under
these requirements to obtain proof of insurance required under this Contract in no way
waives any right or remedy of DISTRICT or any additional insured, in this or any other
regard.
12. CONTRACTOR agrees to require all subcontractors or other parties hired for this project to
provide general liability insurance naming as additional insured all parties to this Contract.
CONTRACTOR agrees to obtain certificates evidencing such coverage and make
reasonable efforts to ensure that such coverage is provided as required here.
CONTRACTOR agrees to require that no contract used by any subcontractor, or contracts
CONTRACTOR enters into on behalf of DISTRICT, will reserve the right to charge back to
DISTRICT the cost of insurance required by this Contract. CONTRACTOR agrees that
upon request, all agreements with subcontractors or others with whom CONTRACTOR
contracts with on behalf of DISTRICT,will be submitted to DISTRICT for review. Failure of
DISTRICT to request copies of such agreement will not impose any liability on DISTRICT,or
its employees.
13. If CONTRACTOR is a Limited Liability Company, general liability coverage must be
amended so that the Limited Liability Company and its managers, affiliates, employees,
agents, and other persons necessary or incidental to its operation are insured.
14. CONTRACTOR agrees to provide immediate notice to DISTRICT of any claim or loss
against CONTRACTOR that includes DISTRICT as a defendant. DISTRICT 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 DISTRICT.
34. Indemnification. CONTRACTOR and DISTRICT agree that DISTRICT should,to
the fullest extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit,
cost, expense, attorneys fees, litigation costs, defense costs, court costs or any other cost arising
out of or in any way related to the performance of this Contract. Accordingly,the provisions of this
indemnity provision are intended by the parties to be interpreted and construed to provide the fullest
protection possible under the law to the DISTRICT, except for liability attributable to the
DISTRICT'S active negligence. CONTRACTOR acknowledges that DISTRICT would not enter into
this Contract in the absence of this commitment from CONTRACTOR to indemnify and protect
DISTRICT as set forth here.
To the fullest extent permitted by law and excepting only the active negligence of DISTRICT,
established by a court of competent jurisdiction or written agreement between the parties,
CONTRACTOR shall defend, indemnify and hold harmless DISTRICT, its employees, agents and
officials, from any liability, claims, suits, actions, arbitration proceedings, administrative
proceedings, regulatory proceedings, losses, expenses or costs of any kind,whether actual,alleged
or threatened, actual attorney fees incurred by DISTRICT, court costs, interest, defense costs
including expert witness fees and any other costs or expenses of any kind whatsoever without
restriction or limitation incurred in relation to, as a consequence of or arising out of or in any way
attributable actually, allegedly or impliedly, in whole or in part to the performance of this Contract.
All obligations under this provision are to be paid by CONTRACTOR as incurred by DISTRICT.
Without affecting the rights of DISTRICT under any provision of this Contract or this Section,
CONTRACTOR shall not be required to indemnify and hold harmless DISTRICT as set forth above
for liability attributable to the active negligence of DISTRICT, provided such active negligence is
determined by agreement between the parties or the findings of a court of competent jurisdiction.
This exception will apply only in instances where the DISTRICT is shown to have been actively
negligent and not in instances where CONTRACTOR is solely or partially at fault or in instances
where DISTRICT'S active negligence accounts for only a percentage of the liability involved. In
those instances,the obligation of CONTRACTOR will be for that portion or percentage of liability not
attributable to the active negligence of DISTRICT as determined by written agreement between the
parties or the findings of a court of competent jurisdiction.
The obligations of CONTRACTOR under this or any other provision of this Contract will not be
limited by the provisions of any workers'compensation act or similar act. CONTRACTOR expressly
waives its statutory immunity under such statutes or laws as to DISTRICT, itsemployees and
officials.
CONTRACTOR agrees to obtain executed indemnity agreements with provisions identical to those
set forth in this section from each and every subcontractor, sub-tier contractor or any other person
or entity involved by, for, with, or on behalf of CONTRACTOR in the performance of the subject
matter of this Contract. In the event CONTRACTOR fails to obtain such indemnity obligations from
others as required here, CONTRACTOR agrees to be fully responsible according to the terms of
this section.
Failure of DISTRICT to monitor compliance with these requirements imposes no additional
obligations on DISTRICT and will in no way act as a waiver of any rights hereunder. This obligation
to indemnify and defend DISTRICT as set forth herein is binding on the successors, assigns, or
heirs of CONTRACTOR and shall survive the termination of this Contract or this section.
35. Permits. The CONTRACTOR shall obtain from DISTRICT, City, County, State,
Federal or other responsible public agencies all licenses and permits, and pay all fees related
thereto, necessary to complete the job.
36. Assignment. No assignment by the CONTRACTOR of this Contract or any part
hereof, or of funds to be received hereunder, will be recognized by the DISTRICT unless such
assignment has had prior written approval and consent of the DISTRICT and the Surety.
37. Safety and Site Condition. CONTRACTOR shall perform all operations with due
regard for safety and in strict compliance with all applicable laws relating thereto. It shall be
CONTRACTOR'S responsibility to keep the site in a clean, neat and orderly condition. It shall also
be CONTRACTOR'S duty to dust-palliate all working areas and access routes, if applicable. All
operations shall be conducted by CONTRACTOR so that no fire hazards are created.
38. Utility Location. DISTRICT acknowledges its responsibilities with respect to
locating facilities pursuant to California Government Code Section 4215.
39. Trenching. If this Contract involves digging trenches or other excavations that
extend deeper than four feet below the surface, CONTRACTOR shall promptly, and before the
following conditions are disturbed, notify the District Engineer in writing, of any:
(a) Material that the CONTRACTOR believes may be material that is hazardous waste, as
defined in Section 25117 of the Health and Safety Code,that is required to be removed to a
Class I, Class II, or Class III disposal site in accordance with provisions of existing law.
(b) Subsurface or latent physical conditions at the site differing from those indicated.
(c) Unknown physical conditions at the site of any unusual nature, different materially from
those ordinarily encountered and generally recognized as inherent in work of the
character provided for in the Contract.
(d) The District Engineer shall promptly investigate the conditions, and if he finds that the
conditions do materially so differ, or do involve hazardous waste, and cause a decrease or
increase in the CONTRACTOR'S cost of, or the time required for, performance of any part
of the work, shall issue a change order in accordance with the procedures described in this
Contract.
(e) In the event that a dispute arises between District Engineer and the CONTRACTOR
whether the conditions materially differ, or involve hazardous waste,or cause a decrease or
increase in the CONTRACTOR's cost of, or time required for, performance of any part of the
work, the CONTRACTOR shall not be excused from any scheduled completion date
provided for by the Contract, but shall proceed with all work to be performed under the
Contract. The CONTRACTOR shall retain any and all rights provided either by contract or
by law, which pertain to the resolution of disputes and protests between the contracting
parties.
40. Notices. The parties hereto agree that all formal notices required by this Contract
may be provided to the following persons at the following addresses by sending the same by
certified or registered mail as follows:
DISTRICT: General Manager
Costa Mesa Sanitary District
628 W. 19th Street
Costa Mesa, California 92627-2716
CONTRACTOR: Sancon Engineering, Inc.
5841 Engineer Drive
Huntington Beach, CA 92649
41. Effect of Invalidity. The invalidity in whole or in part of any provisions hereof shall
not affect the validity of any other provision.
42. Gratuities. CONTRACTOR warrants that neither it nor any of its employees,agents
or representatives has offered or given any gratuities to DISTRICT'S employees, agents or
representatives with a view toward securing this Contract or securing favorable treatment with
respect thereto.
43. Conflict of Interest. CONTRACTOR warrants that he has no blood or marriage
relationship, and that he is not in any way associated with any architect, engineer or other preparer
of the plans and specifications for this project.
44. Copeland"Anti-Kickback"Act. If applicable to this Contract, CONTRACTOR and
its subcontractors shall comply with the provisions of the Copeland "Anti-Kickback" Act (18 USC
Section 874), as supplemented in Department of Labor regulations, which Act provides that each
Contractor shall be prohibited from requiring, by any means, any person employed in the
construction, completion or repair of any public work, to give up any part of the compensation to
which he is otherwise entitled.
45. Final Closeout Agreement and Release of All Claims. Prior to filing the Notice of
Completion the CONTRACTOR and DISTRICT shall execute and record a Final Closeout
Agreement and Release of All Claims, should the District make this request of CONTRACTOR.
46. Guarantees. CONTRACTOR shall and hereby does guarantee all work for a period
of one (1)year after the date of filing of the Notice of Completion and shall repair and replace any
and all such work,together with any other work which may be displaced in so doing that may prove
defective in workmanship and/or materials within the one (1)year period from date of the filing of
the Notice of Completion, without expense whatsoever to the DISTRICT, ordinary wear and tear
and usual abuse or neglect excepted. In the event of failure to comply with the aforementioned
conditions within five (5)days after being notified in writing, the DISTRICT is hereby authorized to
proceed to have the defects repaired and made good at the expense of the CONTRACTOR, who
shall pay the cost and charges therefor immediately on demand.
47. Job Progress. CONTRACTOR agrees to maintain a critical path analysis
throughout the project. CONTRACTOR agrees to meet with the District Engineer on a weekly or
other periodic basis, or as requested by the District Engineer to review job progress.
CONTRACTOR agrees to provide District Engineer with critical path analysis documentation
whenever job progress is impacted so that the completion date may be affected or whenever delays
or other impacts may give rise to CONTRACTOR'S claim for additional days or additional damages.
Delay and other claims of damages based on CONTRACTOR'S planned early completion are
prohibited.
48. Resolution of Claims. For all claims that are less than Three Hundred and Seventy
Five Thousand Dollars ($375,000.00), the provisions of Public Contracts Code Section 20104 et
seq. (Article 1.5— Resolution of Construction Claims) shall be followed.
49. Notice to Contractor of Claims. DISTRICT shall provide notice to CONTRACTOR
upon receipt of any third-party claim related to the Contract.
IN WITNESS WHEREOF, the parties hereto have entered into this agreement the date and year
first above written.
ATTEST: COSTA M S• ANIT•.-Y DISTRICT
(fi ii d.a,A111AL/Ar . j
Clerk of t, e D ay /
Presif,-nt of the Board -•f Directors
APPROVED AS TO FORM:
CONTRACTOR
Name: Sancon Engineering, Inc.
Colin R. Burns
Associate District Counsel Address: 5841 Engineer Drive
Huntingto each, CA 92649
APPROVED AS TO CONTENT: By: (7.,--P
4
Robin B. lamers
District Engineer
A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document to which this certificate is attached,and not the truthfulness,accuracy,or
validity of that document.
STATE OF CALIFORNIA) ss (IroZE /(CORPORATION)
COUNTY OF CIA )
On Inftti 2-2 , 2015, before me, the undersigned, a Notary Public in and for said
state, persoPiially appeared (Apt _ IPaJSo nS who proved to me on the
basis of satisfactory evidence to be the person(,') whose nameK) is/afe subscribed to the within
instrument and acknowledged to me that he/ LtJxegr executed the same in histbcr/t>hir authorized
capacity(i , and that by his r/Fear signature(v)on the instrument the person, or the entity on
behalf of which the person(*) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
•
WITNESS my hand and official seal.
„„ ., C VIZCARRA
(� •y _ '�. Commission No. 1996629 A
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'rte NOTARY PUBLIC•CALIFORNIA
� p ORANGE COUNTY
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My Comm.Expires OCTOBER 30,2016
(Notary Public)
REQUEST FOR CHANGE ORDER RCO No.
(Payment or Time)
NOTICE: Conditions arising that would support a request for payment for additional work or time extension must be
brought to the District's attention within ten (10) days, and a Request for Change Order for additional work/time
extensions must be filed within fifteen(15)days. THIS FORM MUST BE USED. (See Contract Section 5.)
Circumstances supporting payment for additional work/time:
1. Describe why payment should be granted. Attach any more detailed discussion,with backup documents as an
exhibit. (Remember:damages have been contractually limited on this job. See Section 28 of the Contract.)
2. Describe the delay and why a time extension is appropriate. Provide any backup documents as may be
necessary to support the request. You must demonstrate how the critical path was impacted.
Submitted by
Construction Manager's Approval: Engineer's Approval:
By: By:
NOTE: Approval of this request for change order is only effective upon District approval of the change order.
Change Order approved/denied by:
r
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1 ` --1171: I^ h‘ • •Costa Mesa SanitaryDistrict
9
�ORpORA�ti�` . . .an Independent Special District
Memorandum
To: Board of Directors
Via: Scott Carroll, General Manage
From: Rob Hamers, District Engineer
Date: May 28, 2015
Subject: Project#194 Pump Station Coating and Manhole Rehabilitation —
Bid Opening and Award of Contract
Summary
The interior concrete surfaces of sewer manholes and pump station wet wells are subject
to corrosion from the acidic environment formed when hydrogen sulfide (the rotten egg
odor) combines with moist warm air to form sulfuric acid. The corrosion is severe and
relentless and the District and other agencies prevent the corrosion by coating concrete
surfaces with compounds that resist the corrosion.
This project will clean and coat the interior of 27 manholes and three pump station wet
wells. This type of project is completed every 7-10 years as the need arises.
Staff Recommendation
That the Board of Directors approves awarding a contract to the lowest responsive bidder,
Sancon Engineering, Inc. of Huntington Beach, California, in the amount of $241,800 and
authorizes the General Manager to establish a contingency budget in accordance with
CMSD Operations Code Section 4.04.060(e).
Analysis
Bids were opened on April 20, 2015 and the results are as follows:
Engineer's Estimate $253,000
Sancon Engineering, Inc. $241,800
M1�, .s OI°Isry..%
* {~ * Protecting our community's health and the environment by providing solid waste and sewer collection services.
p n., www.crosdca.gov
-N,�wiys�pt4,
Board of Directors
May 28, 2015
Page 2 of 3
Staff checked the licensing requirements and references for the low bidder, Sancon
Engineering, Inc., and found everything in order, therefore, a recommendation to award
the contract is being made.
Sancon Engineering is an industry leader in the production and application of preventative
coatings and was the contractor for the prior District project of coating manhole interiors
and pump station wet wells. Sancon has also successfully installed liners inside District
sewer mains and the District has always found Sancon's workmanship to be outstanding.
Although there was only one bidder for the project, Sancon's bid is very close to the
engineer's estimate. The District advertised the project in four trade journals as required
under the Uniform Public Construction Cost Accounting Act (UPCCAA), which the District
has adopted, along with sending the notice inviting bids to all the contractors on the
District's pre-qualified contractors list.
One bidder was disqualified from bidding based on having a coating that did not meet the
project specifications and the basis for rejection is attached hereto. Years ago the District
studied coatings and the technologies for increasing thicknesses and corrosion resistance.
The coating proposed by this potential bidder was a simple thin paint-like coating while the
project specifications require the advanced eco system technology that produces a long
lasting extra thick coating by injecting sand and aggregate into polyurethane to produce a
polyurethane mortar. The thick polyurethane mortar is what provides the long lasting
protection. The rejection of this bidder was discussed with the District's General Manager
prior to the formal rejection.
•
Strategic Plan Element & Goal
This item complies with the objective and strategy of Strategic Plan Element 1.0, Sewer
Infrastructure, which states as follows:
"Objective: Our objective is to collect and transport wastewater to meet the needs of
existing and future customers.
Strategy: We will do this by the careful managementof the collection infrastructure using
prudent planning and maintenance, with financial strategies to maintain sufficient capacity
and respond to changing regulatory demands."
Legal Review
District Counsel prepared and signed the construction contract being considered.
Environmental Review
The cleaning of concrete surfaces and the installation of a protective coating as shown on
the plans for Project#194 is categorically exempt under the California Environmental
Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301
as a "Class 1" project as stated under 15301 Class 1 consists of the operation, repair,
Board of Directors
September 26, 2013.
Page3of3
maintenance, permitting, leasing, licensing, or minor alteration of existing public or
private structures, facilities ...15301(b) "Existing facilities of both investor and
publicly-owned utilities used to provide electric power, natural gas, sewerage, or
other public utility services".
Financial Review
The total budget for project #194 Pump Station Coating and Manhole Rehabilitation is
$300,000. Shown below is the estimated costs for rehabilitating the 27 manholes and 3
wet wells including design, contract administration, inspection and contingency which
brings the total to $285,230. There is sufficient money available in the FY 2014-15 Budget
to complete this project.
Lowest Responsible Bidder $241,800
Design, Contract Admin, Inspection $19,250
Contingency $24,180
Total Project Cost $285,230
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the
May 28, 2015 Board of Directors regular meeting at District headquarters and on District's
website.
Alternative Actions
1. Do not award the contract to Sancon Engineering, Inc.
• 2. Direct staff to report back with more information
Attachments A: Contract between Sancon Engineering, Inc. and CMSD
B: Justification for Rejection of Bid
Reviewed by:
Wendy Hooper Davis
Finance Manager
Form *a Request for Taxpayer Give Form to the
(Rev.August 2013) Identification Number and Certification requester.Do not
Department of the Treasury send to the IRS.
Internal Revenue Service
Name(as shown on your income tax return)
Sancon Engineering,Inc.
c‘i Business name/disregarded entity name,If different from above
d
rn
ro
a- Check appropriate box for federal tax classification: Exemptions(see instructions):
°
❑IntlivlduaVsole proprietor ❑ C Corporation ❑� S Corporation ❑ Partnership ❑Trust/estate
• o Exempt payee code(if any)
1• i ❑ Limited liability company.Enter the tax classification(C=C corporation,S=S corporation,P=partnership)> Exemption from FATCA reporting
code(if any)
a o ❑ Other(see instructions)t•
FS(.3
Address(number,street,and apt.or suite no.) Requester's name and address(optional)
S. 5841 Engineer Drive
, City,state,and ZIP code
v
(0 Huntington Beach,CA 92649
List account number(s)here(optional)
'Part) Taxpayer Identification Number(TIN)
Enter your TIN in the appropriate box.The TIN provided must match the name given on the"Name"line I Social security number
to avoid backup withholding.For individuals,this is your social security number(SSN).However,for a
resident alien,sole proprietor,or disregarded entity,see the Part I instructions on page 3.For other — -
entities,it is your employer identification number(EIN).If you do not have a number,see How to get a
TIN on page 3.
Note.If the account is in more than one name,see the chart on page 4 for guidelines on whose Employer Identification number
number to enter.
3 3 - 0 7 3 0 3 1 8
„Part II Certification
Under penalties of perjury,I certify that:
1. The number shown on this form Is my correct taxpayer identification number(or I am waiting for a number to be issued to me),and
2. I am not subject to backup withholding because:(a)I am exempt from backup withholding,or(b)I have not been notified by the Internal Revenue
Service(IRS)that I am subject to backup withholding as a result of a failure to report all interest or dividends,or(c)the IRS has notified me that I am
no longer subject to backup withholding,and
3. I am a U.S.citizen or other U.S.person(defined below),and
4.The FATCA code(s)entered on this form(if any)indicating that I am exempt from FATCA reporting is correct.
Certification instructions.You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding
because you have failed to report all interest and dividends on your tax return.For real estate transactions,item 2 does not apply.For mortgage
interest paid,acquisition or abandonment of secured property,cancellation of debt,contributions to an individual retirement arrangement(IRA),and
generally,payments other than Interest and dividends,you are not required to sign the certification,but you must provide your correct TIN.See the
instructions on page 3. •
Sign Signature of
Here U.S.person> Date> 05/28/15
General Instructions withholding tax on foreign partners'share of effectively connected income,and
4.Certify that FATCA code(s)entered on this form(if any)indicating that you are
Section references are to the Internal Revenue Code unless otherwise noted. exempt from the FATCA reporting,is correct.
Future developments.The IRS has created a page on IRS.gov for information Note.If you are a U.S.person and a requester gives you a form other than Form
about Form W-9,at www.lrs.gov/w9.Information about any future developments W-9 to request your TIN,you must use the requester's form if it is substantially
affecting Form W-9(such as legislation enacted after we release it)will be posted similar to this Form W-9.
on that page.
Definition of a U.S.person.For federal tax purposes,you are considered a U.S.
Purpose of Form person If you are:
A person who Is required to file an information return with the IRS must obtain your individual who is a U.S.citizen or U.S.resident alien,
correct taxpayer identification number(TIN)to report,for example,income paid to •A partnership,corporation,company,or association created or organized in the
you,payments made to you In settlement of payment card and third party network United States or under the laws of the United States,
transactions,real estate transactions,mortgage Interest you paid,acquisition or •An estate(other than a foreign estate),or
abandonment of secured property,cancellation of debt,or contributions you made •A domestic trust(as defined in Regulations section 301.7701-7).to an IRA.
Use Form W-9 only if you are a U.S.person(including a resident alien),to Special rules for partnerships.Partnerships that conduct a trade or business In
provide your correct TIN to the person requesting it(the requester)and,when the United States are generally required to pay a withholding tax under section
applicable,to: 1446 on any foreign partners'share of effectively connected taxable income from
such business.Further,in certain cases where a Form W-9 has not been received,
1.Certify that the TIN you are giving is correct(or you are waiting for a number the rules under section 1446 require a partnership to presume that a partner is a
to be Issued), foreign person,and pay the section 1446 withholding tax.Therefore,if you are a
2.Certify that you are not subject to backup withholding,or U.S.person that is a partner in a partnership conducting a trade or business in the
3.Claim exemption from backup withholding if you are a U.S.exempt payee.If United States,provide Form W-9 to the partnership to establish your U.S.status
applicable,you are also certifying that as a U.S.person,your allocable share of and avoid section 1446 withholding on your share of partnership income.
any partnership income from a U.S.trade or business Is not subject to the
Cat.No.10231X Form W-9(Rev.8-2013)