Contract - Vicon Enterprise, Inc - 2024-04-26DocuSign Envelope ID: 2B06F53B-FDB1-4E3B-9A00-483FCD770308
CMSD #330 Westbluff Pump Station Rehabilitation
This Agreement (hereinafter referred to as "AGREEMENT") is made and entered into this
26th day of April, 2024, by and between the COSTA MESA SANITARY DISTRICT, hereinafter
referred to as "DISTRICT" and Vicon Enterprise, Inc., a California Corporation, hereinafter
referred to as "CONTRACTOR."
WITINESSETH
That for and in consideration of the promises and agreements hereinafter made and
exchanged, DISTRICT and CONTRACTOR mutually agree as follows:
SCOPE OF THE WORK AND CONTRACT SUM
She of the Work. CONTRACTOR shall perform all the work and shall provide and
furnish all labor, materials, tools, expendable equipment, and utility and transportation services
required to construct the CMSD #330 Westbluff Pump Station Rehabilitation
(hereinafter referred to as "PROJECT"). This project has been registered with the Department of
Industrial Relations using form PC-100 pursuant to Labor Code section 17733.
1. 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 Westbluff Pump
Station Rehabilitation Project No. 330, and CONTRACTOR agrees to do everything required by
this AGREEMENT, the plans and specifications, and the CONTRACT DOCUMENTS.
All labor, materials, tools, equipment, and services shall be performed under the direction
and administration of, and subject to the approval of, DISTRICT or its authorized representatives.
2. 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 Three hundred and thirty eight
thousand, eight hundred and twenty Dollars ($ 338,820-00).
NOTICE TO PROCEED AND TIMING
3. Notice to Proceed. No work, services, material, or equipment shall be performed
or furnished under this AGREEMENT unless and until a "Notice to Proceed" has been given to
CONTRACTOR by DISTRICT and all bonds and certificates of insurance required pursuant
hereto have been furnished to and approved by DISTRICT,
4. Time of Completion . CONTRACTOR agrees to commence the work to be
performed under this AGREEMENT on the start of the construction date specified in the "Notice
To Proceed" and to diligently prosecute the work to completion by the completion date specified
in the Notice to Proceed, which the parties agree is Ninety (90) WORKING DAYS.
5. Time of the Essence. Time is of the essence of this AGREEMENT.
6. Liquidated Damages/Additional Actual 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
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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. It is therefore agreed the CONTRACTOR will pay to the DISTRICT the sum of Five
Hundred Dollars ($ §90) per calendar day for each and every day of delay in finishing the work in
excess of the number of days prescribed in Section 4, 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.
Liquidated damages shall be a measurement of the sum to compensate the public for
inconvenience from not having the work completed on time and the cost of DISTRICT staff to
monitor the job beyond the completion date. DISTRICT shall further be entitled to recover its
additional actual damages incurred which shall be supplemental to the liquidated damages.
Provided strict compliance with Section 21 below is effected, 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 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,
7. Job Proaress. CONTRACTOR agrees to maintain a realistic critical path analysis
throughout the project. CONTRACTOR agrees to meet with DISTRICT's PROJECT MANAGER
or designee on a weekly or other periodic basis, or as requested by DISTRICT to review job
progress. "PROJECT MANAGER" for purposes of this AGREEMENT shall be the District
Engineer or such designee as has been given the authority for this PROJECT in a written
designation. CONTRACTOR agrees to provide DISTRICT 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.
8. Cooperation. CONTRACTOR agrees to cooperate with DISTRICT's PROJECT
MANAGER or designee and to provide submittals and participate in meetings in a good faith effort
to complete the PROJECT. If disagreements arise, CONTRACTOR agrees to document the
disagreement in accordance with these AGREEMENT provisions and provide DISTRICT with
early notice of the same for later resolution but shall continue to cooperate and prosecute the
work to completion in a diligent manner. Nothing herein shall excuse CONTRACTOR's strict
compliance with Section 21 if additional time or money is sought.
9. CONTRACTOR's Independent Investigation.
(a) 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
AGREEMENT, 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
for purposes of letting this AGREEMENT 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 said
AGREEMENT, specifications, and plans, nor will such reasons be accepted as a basis for any
claims whatsoever for extra compensation or for an extension of time except as provided in
Section 21 of this AGREEMENT.
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(b) Except as specifically provided in the CONTRACT DOCUMENTS, information
provided for purposes of bidding do not represent "conditions indicated" as being in existence and
are provided for the convenience of the CONTRACTOR in making its own investigation.
LABOR, WAGE, AND HOURS LAWS
10. Public Work. Notice is provided pursuant to Labor Code Section 1781 that this is
a "public work" as defined in Chapter 1, Part 7, Division 2 of the Labor Code, to which Section
1771 applies. CONTRACTOR shall pay prevailing gages, unless exempt.
11. Contractor/SubcontractorsRegistered. Contractor and all subcontractors are
registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5
and paid its annual fee.
12. Prevailing Wane Rates. Pursuant to Labor Code Section 1773.2, copies of the
prevailing p g p: goy/ , _D/index.htm
revailln rate of per diem wages can found at htt //w�nnr.dir.ca._ oy/OPRLIPW.,_.___
and are on file at the DISTRICT, which shall be made available to any interested party upon
request. CONTRACTOR shall post a copy of the determination of the director of the prevailing
rate of per diem wages at each job site. 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 Section 1773.1 of the Labor Code.
13. Payroll Records/ Electronic Records.
(a) The provisions of Section 1776 of the Labor Code regarding the preparation,
maintenance, and fling of payroll records are applicable to this AGREEMENT. Each contractor
and subcontractor shall keep accurate payroll records 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, worker, or other employee
employed by him or her in connection with the public work. Certified payroll records shall be on
forms provided by the Division of Labor Standards Enforcement or contain the same information.
THE CONTRACTOR'S AND SUBCONTRACTOR'S PAYROLL RECORDS SHALL BE
SUBMITTED TO DISTRICT ON A WEEKLY BASIS. THE CONTRACTOR SHALL BE
RESPONSIBLE FOR SUBMITTAL OF SUBCONTRACTOR'S PAYROLL RECORDS,
Additionally, CONTRACTOR or subcontractor has 10 days in which to comply subsequent to
receipt of a written notice requesting the records enumerated in Section 1776, subdivision (a), of
the Labor Code. In the event that CONTRACTOR or subcontractor fails to comply within the 10-
day period, he or she shall, as a penalty to DISTRICT, forfeit One Hundred Dollars ($100.00) for
each calendar day, or portion thereof, for each worker, until strict compliance is effectuated.
DISTRICT may deduct this penalty from any monies due or that may become due CONTRACTOR
under this AGREEMENT.
(b) Contractor shall submit electronic payment records to the Department of Industrial
Relations.
14. Penalty. CONTRACTOR and any subcontractor under CONTRACTOR shall, as
a penalty to DISTRICT, forfeit not more than Two Hundred Dollars ($200.00) for each calendar
day, or portion thereof, for each worker paid (either by CONTRACTOR or any subcontractor under
CONTRACTOR) less than the prevailing rate set forth herein on the work provided for in this
AGREEMENT. DISTRICT may deduct the penalty from any monies due or that may become due
CONTRACTOR under this AGREEMENT. The difference between the prevailing wage rates and
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the amount paid to each worker for each calendar day, or portion thereof, for which each worker
was paid less than the prevailing wage rate shall also be paid to each worker by CONTRACTOR
or subcontractor, in accordance with Section 1775 of the tabor Code of the State of California.
15. Apprentices. If applicable, the provisions of Labor Cade Section 1777.5 requiring
the use of apprentices in certain ratios to journeymen on the PROJECT are hereby imposed upon
CONTRACTOR.
16. Lenai Day's Work. In the performance of this AGREEMENT, 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 employed by him hereunder except as provided in
Labor Code Section 1815. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections
1810 et seg.), 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 Twenty -Five Dollars ($25.00) for each worker
employed in the execution of this AGREEMENT by the CONTRACTOR or any subcontractor for
each calendar day during which any worker is required or permitted to labor more than eight (8)
hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said
article. DISTRICT may deduct this penalty from any sums owed pursuant to this AGREEMENT.
PROGRESS PAYMENTS AND RETENTION
18. Progress Payments. Pursuant to Public Contract Code Section 7201, prior to the
fifteenth (15th) day of the month next following the commencement of the work, there shall be
paid to CONTRACTOR a sum equal to ninety-five percent (95%) of the value of the work
completed since the commencement of the work as determined by DISTRICT and thereafter prior
to the fifteenth (15th) day of each successive month as the work progresses. CONTRACTOR
shall be paid such sum as will bring the payments up each month to ninety-five percent (95%) of
the value of the work completed since the commencement of the work as determined by
DISTRICT, less all previous payments and authorized deductions, provided that CONTRACTOR
submits his request for payment prior to the last Wednesday of each preceding month. Pursuant
to Public Contract Code 7107, DISTRICT shall make the final payment, if unencumbered, or any
part thereof unencumbered, within sixty (60) days after the date of completion. Notwithstanding
the foregoing, CONTRACTOR shall provide DISTRICT with all documentation required by this
AGREEMENT, including the Final Closeout Agreement and Release of All Claims, as well as any
other documents required by the CONTRACT DOCUMENTS such as as-builts, red -line plans,
manufacturers and specific guarantees, and owner's manuals prior to receiving final payment.
Payments shall be made on demands drawn in the manner required by law, accompanied by a
certificate signed by the Project Manager, stating that the work for which payment is
demanded has been performed in accordance with the terms of the AGREEMENT, and that the
amount stated in the certificate is due under the terms of the AGREEMENT. Partial payments on
the AGREEMENT price shall not be considered as an acceptance of any part of the work. Nothing
herein shall limit DISTRICT's right to withhold one hundred fifty percent (150%) of disputed
amounts in the event of a good faith dispute.
19. 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.
20. Retention Securities. Pursuant to California Public 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
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DISTRICT to insure performance of the AGREEMENT.
CHANGE ORDERS / EXTRA TIME / EXTRA WORK
21. Reguest for Extra Time or Additional Compensation. The following provisions
must be strictly complied with to obtain additional time to complete the job or to obtain additional
compensation:
(a) Request for Change Order — Additional Time. The CONTRACTOR shall promptly
notify the DISTRICT of any delay and shall, within ten (10) days from the beginning of any such
delay, notify the DISTRICT in writing of the cause of the delay, and the DISTRICT shall extend
the time for completing the work if in its judgment the cause so merits. The DISTRICT's
determination on this matter shall be final and conclusive on the parties hereto. CONTRACTOR
shall be required to submit a Request for Change Order, as set forth in this AGREEMENT, to the
DISTRICT'S PROJECT MANAGER within ten (10) days of the beginning of such a delay. No
adjustment shall be allowed for such delay unless there is strict compliance with this contractual
provision. CONTRACTOR's remedy shall be limited to the extra days granted and to any
damages that it may be entitled to using the formula agreed to by the parties for all damages as
provided in Section 22.
(b) Reguest for Change Order — Additional Compensation Sough .
(i) Should CONTRACTOR claim that the DISTRICT is demanding extra work
from it or consider any work demanded of it to be outside the requirements of this
AGREEMENT or if it considers any instruction, ruling, or decision of the PROJECT
MANAGER to be unfair, he shall within ten (10) days after any such demand is made, or
instruction, ruling, or decision is given, file a written protest with the PROJECT MANAGER
stating clearly and in detail his objections and the reasons therefor. Except for such
protests and objections as are made of record, in the manner and within the time above
stated, the CONTRACTOR shall be deemed to have waived, and does hereby waive, all
claims for extra work, damages, and extensions of time on account of demands,
instructions, rulings, and decisions of the District Engineer.
(ii) Should CONTRACTOR claim that additional compensation is due it
because of an unforeseen condition, CONTRACTOR shall bring that to DISTRICT's
attention promptly and within ten (10) days and shall submit a written request for change
order within ten (10) days to DISTRICT.
(c) Request for Change Order — DISTRICT Form to Be Used. DISTRICT's Request
for Change Order form, which is attached hereto as part of this AGREEMENT, shall be the form
that must be submitted in a timely fashion for a request for either additional time or additional
compensation. By initialing, the CONTRACTOR specifically agrees to use said form for those
purposes and understands that, if he does not submit that form in a timely manner, he waives the
right to request additional time or compensation. No oral modifications or other forms of
communication shall be accepted as compliance with this provision. The written request for
change order requirement cannot be waived. I
Contractor's Initials ' PA
(d) Change Order. Should DISTRICT agree that a change order is warranted for
either additional time or compensation, a written change order shall be executed. If DISTRICT
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does not agree to the change order, and CONTRACTOR has provided timely notices and
submitted its written request for change order in a timely manner and on the proper form,
CONTRACTOR will have preserved the issue for later resolution in compliance with other
procedures set forth in this AGREEMENT or as the law may otherwise allow.
(e) Change Order Authority. The following authority is given to approve Change
Orders:
W Chan-ge Orders for Extra Time. The General Manager shall have the
authority to grant extra days without limit.
(ii) Change Orders for Extra Compensation. The General Manager shall have
the authority to make change orders up to an aggregate amount of Ten Percent (10%) of
the original contract amount or Fifteen Thousand Dollars ($15,000), whichever is greater.
22. Damages I 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 following damage formula shall be used to measure all of CONTRACTOR's
damages or extra work required by this PROJECT. 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 $5,000)
Subcontracted work 5% (work in excess of first $5,000)
Specialty Subcontracting
(required by extra work) 5% (Provided at least three (3)
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 Section.
Contractor's Initials
SUBCONTRACTING
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23. Subcontracting. (a) CONTRACTOR acknowledges that he or she is aware of the
provisions of the "Subletting and Subcontracting Fair Practices Act," (Public Contract Code
Sections 4100 et seg.) and agrees to comply with all applicable provisions thereof. If any part of
the work to be done under this AGREEMENT 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 AGREEMENT. Upon request, certified copies of any or all subcontracts shall be furnished to
DISTRICT. The subcontracting of any or all of the work to be done will in no way relieve
CONTRACTOR of any part of his responsibility under the AGREEMENT. Pursuant to Public
Contract Code Section 4110, CONTRACTOR's violation of any of the provisions of the Subletting
and Subcontracting Fair Practices Act violates this AGREEMENT, and DISTRICT may cancel this
AGREEMENT or assess CONTRACTOR a penalty of not more than 10 percent (10%) of the
subcontract involved. DISTRICT may deduct this penalty from any monies due or that may
become due to CONTRACTOR for work performed under this AGREEMENT.
(b) While the provisions of Public Contract Code §4107 contemplate CONTRACTOR
requesting a substitution of subcontractor, District shall also be entitled to utilize those
procedures when a subcontractor is not performing in accordance with the Contract. In
those instances, District may give the same notice as provided in §4107 and provide
substantially the same due process.
(c) All persons engaged in the work, including subcontractors, will be considered as
employees of CONTRACTOR. CONTRACTOR will be held responsible for their work. DISTRICT
will deal directly with and make all payments to CONTRACTOR.
STOP NOTICES
24. Additional Costs. Pursuant to Civil Code Section 9358, upon receipt of a stop
notice, DISTRICT shall withhold from payment to CONTRACTOR sufficient funds due, or to
become due, to pay the claim stated in the stop notice and provide for DISTRICT's reasonable
costs of litigation. One hundred twenty-five percent (125%) of the amount of the claim stated in
the stop notice shall be a reasonable amount to withhold. In addition to the remedies authorized
by law, CONTRACTOR shall reimburse DISTRICT for administrative expenses incurred in
processing Notices to Withhold, Stop Notices, or similar legal documents arising out of a failure
of CONTRACTOR to pay for labor or materials. Said obligation shall be provided for in
CONTRACTOR's payment bond. DISTRICT shall have the right to deduct any such expenses
from amounts due or to become due to CONTRACTOR under this AGREEMENT.
25. CONTRACTOR'S Waiver. CONTRACTOR agrees to execute a Final Close Out
Agreement and Release of All Claims on DISTRICT's form (attached). 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 AGREEMENT unless otherwise
stated in said document.
26. Guarantees. CONTRACTOR shall, and hereby does, guarantee all work for a
period of one (1) year after the date of acceptance of the work by the DISTRICT 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 acceptance, without expense whatsoever to the DISTRICT, ordinary wear and tear
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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. This guarantee shall be in
addition to any manufacturer or specific guarantees that may be required. CONTRACTOR shall
provide those manufacturer and specific guarantees before CONTRACTOR may claim
entitlement to final payment.
INDEMNIFICATION
27. Indemnity. CONTRACTOR shall indemnify, defend with legal counsel approved
by DISTRICT, and hold harmless DISTRICT, and its officers, officials, employees, and volunteers,
from and against all liability, loss, damage, expense, and cost (including without limitation
reasonable legal counsel fees, expert fees, and all other costs and fees of litigation) of every
nature arising out of or in connection with CONTRACTOR's negligence, recklessness or willful
misconduct in the performance of work hereunder, or its failure to comply with any of its
obligations contained in this AGREEMENT, except such loss or damage which is caused by the
sole or active negligence or willful misconduct of the DISTRICT. Should conflict of interest
principles preclude a single legal counsel from representing both DISTRICT and CONTRACTOR,
or should DISTRICT otherwise find CONTRACTOR's legal counsel unacceptable, then
CONTRACTOR shall reimburse the DISTRICT its costs of defense, including without limitation
reasonable legal counsel fees, expert fees, and all other costs and fees of litigation. The
CONTRACTOR shall promptly pay any final judgment rendered against the DISTRICT and its
officers, officials, employees, and volunteers with respect to claims determined by a trier of fact
to have been the result of the CONTRACTOR's negligent, reckless or wrongful performance. It
is expressly understood and agreed that the foregoing provisions are intended to be as broad and
inclusive as is permitted by the law of the State of California and will survive termination of this
AGREEMENT.
CONTRACTOR's obligations under this Section apply regardless of whether or not such
claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment,
civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However,
without affecting the rights of DISTRICT under any provision of this AGREEMENT,
CONTRACTOR shall not be required to indemnify and hold harmless DISTRICT for liability
attributable to the active negligence of DISTRICT, provided such active negligence is determined
by agreement between the parties or by the findings of a court of competent jurisdiction. In
instances where DISTRICT is shown to have been actively negligent and where DISTRICT's
active negligence accounts for only a percentage of the liability involved, the obligation of
CONTRACTOR will be for that entire portion or percentage of liability not attributable to the active
negligence of DISTRICT.
Notwithstanding any limits provided for indemnification, CONTRACTOR's duty to defend
is broader. CONTRACTOR agrees to provide DISTRICT with a defense, with counsel reasonably
acceptable to DISTRICT, or pay DISTRICT's costs of defense upon service of any complaint,
petition or other pleading that requires DISTRICT to defend itself in any proceeding arising out of
the work described in this AGREEMENT. Said obligation shall not extend to disputes between
CONTRACTOR and DISTRICT.
INSURANCE
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28. Insurance. Without limiting CONTRACTOR's indemnification of DISTRICT, and
prior to commencement of work, CONTRACTOR shall obtain, provide, and maintain at its own
expense during the term of this AGREEMENT policies of insurance of the types and amounts
described below and in a form satisfactory to DISTRICT.
General liability insurance. CONTRACTOR shall maintain commercial general liability
insurance with coverage at least as broad as Insurance Services Office Form CG 00 01, in an
amount not less than $1,000,000.00 per occurrence, $2,000,000.00 general aggregate, for bodily
injury, personal injury, and property damage, including, without limitation, blanket contractual
liability, and a $2,000,000.00 completed operations aggregate.
Automobile liability insurance. CONTRACTOR shall maintain automobile insurance at
least as broad as Insurance Services Office Form CA 00 01 covering bodily injury and property
damage for all activities of 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 $1,000,000.00 combined single limit for each accident.
Umbrella or excess liability insurance. CONTRACTOR shall obtain and maintain an
umbrella or excess liability insurance policy with limits of not less than $4,000,000.00 that will
provide bodily injury, personal injury, and property damage liability coverage at least as broad as
the primary coverages set forth above, including commercial general liability and employer's
liability. Such policy or policies shall include the following terms and conditions:
• A drop down feature requiring the policy to respond in the event that any primary insurance
that would otherwise have applied proves to be uncollectable in whole or in part for any
reason;
• Pay on behalf of wording as opposed to reimbursement,
• Concurrency of effective dates with primary policies; and
• Policies shall "follow form" to the underlying primary policies.
• Insureds under primary policies shall also be insureds under the umbrella or excess
policies.
Workers' compensation insurance. CONTRACTOR shall maintain Workers'
Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at
least $1,000,000.00) for CONTRACTOR's employees in accordance with the laws of the State of
California, Section 3700 of the Labor Code. 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, Section 3700 of the Labor Code,
for all of the subcontractor's employees.
CONTRACTOR shall submit to DISTRICT, along with the certificate of insurance, a
Waiver of Subrogation endorsement in favor of DISTRICT and its officers, agents, employees,
and volunteers.
Pollution liability insurance. Environmental Impairment Liability Insurance shall be
written on a Contractor's Pollution Liability form or other form acceptable to DISTRICT providing
coverage for liability arising out of sudden, accidental, and gradual pollution and remediation. The
policy limit shall be no less than $1,000,000.00 per claim and in the aggregate. All activities
contemplated in this AGREEMENT shall be specifically scheduled on the policy as "covered
operations." The policy shall provide coverage for the hauling of waste from the PROJECT site
to the final disposal location, including non -owned disposal sites.
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Products/completed operations coverage shall extend a minimum of three years after
PROJECT completion. Coverage shall be included on behalf of the insured for covered claims
arising out of the actions of independent contractors. If the insured is using subcontractors, the
policy must include work performed "by or on behalf of the insured. Policy shall contain no
language that would invalidate or remove the insurer's duty to defend or indemnify for claims or
suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on
the part of the insurer. The DISTRICT, and its officials, officers, agents, and employees, shall be
included as insureds under the policy.
Proof of insurance. CONTRACTOR shall provide certificates of insurance to DISTRICT
as evidence of the insurance coverage required herein, along with a waiver of subrogation
endorsement for workers' compensation. Insurance certificates and endorsement must be
approved by DISTRICT's risk manager prior to commencement of performance. Current
certification of insurance shall be kept on file with DISTRICT at all times during the term of this
AGREEMENT. DISTRICT reserves the right to require complete, certified copies of all required
insurance policies at any time.
Duration of coverage. CONTRACTOR shall procure and maintain for the duration of the
AGREEMENT insurance against claims for injuries to persons or damages to property, which may
arise from or in connection with the performance of the work hereunder by CONTRACTOR or his
agents, representatives, employees, or subcontractors. CONTRACTOR must maintain general
liability and umbrella or excess liability insurance for as long as there is a statutory exposure to
completed operations claims. DISTRICT and its officers, officials, employees, and agents shall
continue as additional insureds under such policies.
DISTRICT's rights of enforcement. In the event any policy of insurance required under
this AGREEMENT 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 any
premium paid by DISTRICT will be promptly reimbursed by CONTRACTOR or DISTRICT will
withhold amounts sufficient to pay premium from CONTRACTOR payments. In the alternative,
DISTRICT may cancel this AGREEMENT.
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 V11 (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless
otherwise approved by the DISTRICT's Counsel.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this
AGREEMENT shall be endorsed to waive subrogation against DISTRICT and its elected or
appointed officers, agents, officials, employees, and volunteers or shall specifically allow
CONTRACTOR or others providing insurance evidence in compliance with these specifications
to waive their right of recovery prior to a loss. CONTRACTOR hereby waives its own right of
recovery against DISTRICT and shall require similar written express waivers and insurance
clauses from each of its subconsultants.
Enforcement of AGREEMENT provisions (non estoppel). CONTRACTOR
acknowledges and agrees that any actual or alleged failure on the part of the DISTRICT to inform
CONTRACTOR of non-compliance with any requirement imposes no additional obligations on the
DISTRICT, nor does it waive any rights hereunder.
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Requirements not limiting. Requirements of specific coverage features or limits
contained in this Section are not intended as a limitation on coverage, limits or other requirements,
or a waiver of any coverage normally provided by any insurance. Specific reference to a given
coverage feature is for purposes of clarification only as it pertains to a given issue and is not
intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a
waiver of any type.
Notice of cancellation. CONTRACTOR agrees to oblige its insurance agent or broker
and insurers to provide DISTRICT with a thirty (30) day notice of cancellation (except for
nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each
required coverage.
Additional insured status. General liability policies shall provide or be endorsed to
provide that DISTRICT and its officers, officials, employees, and agents shall be additional
insureds under such policies. This provision shall also apply to any excess liability policies.
DISTRICT's right to revise requirements. The DISTRICT reserves the right, at any time
during the term of the AGREEMENT, to change the amounts and types of insurance required by
giving the CONTRACTOR a ninety (90)-day advance written notice of such change. if such
change results in substantial additional cost to the CONTRACTOR, the DISTRICT and
CONTRACTOR may renegotiate CONTRACTOR's compensation.
Self -insured retentions. Any self -insured retentions must be declared to and approved
by DISTRICT. DISTRICT reserves the right to require that self -insured retentions be eliminated,
lowered or replaced by a deductible. Self-insurance will not be considered to comply with these
specifications unless approved by DISTRICT.
Timely notice of claims. CONTRACTOR shall give DISTRICT prompt and timely notice
of claims made or suits instituted that arise out of or result from CONTRACTOR's performance
under this AGREEMENT, and that involve or may involve coverage under any of the required
liability policies.
Additional insurance. CONTRACTOR shall also procure and maintain, at its own cost
and expense, any additional kinds of insurance which in his/her/its own judgment may be
necessary for its proper protection and prosecution of the work.
29. Workers' Compensation.
A. 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 AGREEMENT, 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 AGREEMENT."
B. CONTRACTOR acknowledges that it is unlawful and a crime to intentionally make
false statements about employees that misclassify their job duties to obtain lesser premium costs
or for other improper purposes. CONTRACTOR agrees that if it makes false statements about
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AGREEMENT
CMSD #330 Westbluff Pump Station Rehabilitation
This Agreement (hereinafter referred to as "AGREEMENT") is made and entered into this
26th day of Avril, 2024, by and between the COSTA MESA SANITARY DISTRICT, hereinafter
referred to as "DISTRICT" and Vicon Enterprise, 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:
SCOPE OF THE WORK AND CONTRACT SUM
Scope of the Work. CONTRACTOR shall perform all the work and shall provide and
furnish all labor, materials, tools, expendable equipment, and utility and transportation services
required to construct the CMSD #330 Westbluff Pump Station Rehabilitation
(hereinafter referred to as "PROJECT"). This project has been registered with the Department of
Industrial Relations using form PWC-100 pursuant to Labor Code section 1773.3.
1. 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 Westbluff Pump
Station Rehabilitation Proiect No. 330, and CONTRACTOR agrees to do everything required by
this AGREEMENT, the plans and specifications, and the CONTRACT DOCUMENTS.
All labor, materials, tools, equipment, and services shall be performed under the direction
and administration of, and subject to the approval of, DISTRICT or its authorized representatives.
2. 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 Three hundred and thirty eight
thousand, eight hundred and twenty Dollars ($ 338,820.00).
NOTICE TO PROCEED AND TIMING
3. Notice to Proceed. No work, services, material, or equipment shall be performed
or furnished under this AGREEMENT unless and until a "Notice to Proceed" has been given to
CONTRACTOR by DISTRICT and all bonds and certificates of insurance required pursuant
hereto have been furnished to and approved by DISTRICT.
4. Time of Completion. CONTRACTOR agrees to commence the work to be
performed under this AGREEMENT on the start of the construction date specified in the "Notice
To Proceed" and to diligently prosecute the work to completion by the completion date specified
in the Notice to Proceed, which the parties agree is Ninety (90) WORKING DAYS.
S. Time of the Essence. Time is of the essence of this AGREEMENT.
6. Liquidated Damages/Additional Actual 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
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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. It is therefore agreed the CONTRACTOR will pay to the DISTRICT the sum of Five
Hundred Dollars ($ §LO) per calendar day for each and every day of delay in finishing the work in
excess of the number of days prescribed in Section 4, 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.
Liquidated damages shall be a measurement of the sum to compensate the public for
inconvenience from not having the work completed on time and the cost of DISTRICT staff to
monitor the job beyond the completion date. DISTRICT shall further be entitled to recover its
additional actual damages incurred which shall be supplemental to the liquidated damages.
Provided strict compliance with Section 21 below is effected, 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 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,
JOB PROGRESS AND COOPERATION
7. Job Progress. CONTRACTOR agrees to maintain a realistic critical path analysis
throughout the project. CONTRACTOR agrees to meet with DISTRICT's PROJECT MANAGER
or designee on a weekly or other periodic basis, or as requested by DISTRICT to review job
progress. "PROJECT MANAGER" for purposes of this AGREEMENT shall be the District
Engineer or such designee as has been given the authority for this PROJECT in a written
designation. CONTRACTOR agrees to provide DISTRICT 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.
8. Cooperation. CONTRACTOR agrees to cooperate with DISTRICT's PROJECT
MANAGER or designee and to provide submittals and participate in meetings in a good faith effort
to complete the PROJECT. If disagreements arise, CONTRACTOR agrees to document the
disagreement in accordance with these AGREEMENT provisions and provide DISTRICT with
early notice of the same for later resolution but shall continue to cooperate and prosecute the
work to completion in a diligent manner. Nothing herein shall excuse CONTRACTOR's strict
compliance with Section 21 if additional time or money is sought.
9. CONTRACTOR's Independent Investluation.
(a) 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
AGREEMENT, 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
for purposes of letting this AGREEMENT 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 said
AGREEMENT, specifications, and plans, nor will such reasons be accepted as a basis for any
claims whatsoever for extra compensation or for an extension of time except as provided in
Section 21 of this AGREEMENT.
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(b) Except as specifically provided in the CONTRACT DOCUMENTS, information
provided for purposes of bidding do not represent "conditions indicated" as being in existence and
are provided for the convenience of the CONTRACTOR in making its own investigation.
LABOR, WAGE, AND HOURS LAWS
10. Public Work. Notice is provided pursuant to Labor Cade Section 1781 that this is
a "public work" as defined in Chapter 1, Part 7, Division 2 of the Labor Code, to which Section
1771 applies. CONTRACTOR shall pay prevailing wages, unless exempt.
11. Contractor/Subcontractors Registered. Contractor and all subcontractors are
registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5
and paid its annual fee.
12. Prevailing Wage Rates. Pursuant to Labor Code Section 1773.2, copies of the
prevailing rate of per diem wages can be found at http.//www.dir.ca.gov/OPRL/PWD/index.htm
and are on file at the DISTRICT, which shall be made available to any interested party upon
request. CONTRACTOR shall post a copy of the determination of the director of the prevailing
rate of per diem wages at each job site. 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 Section 1773.1 of the Labor Cade.
13. Payroll Records! Electronic Records.
(a) The provisions of Section 1776 of the Labor Code regarding the preparation,
maintenance, and fling of payroll records are applicable to this AGREEMENT. Each contractor
and subcontractor shall keep accurate payroll records showing the name, address, social security
number, work classification, straight time and overtime hours worked each day and week, and
the actual per diem wades paid to each journeyman, apprentice, worker, or other employee
employed by him or her in connection with the public work. Certified payroll records shall be on
forms provided by the Division of Labor Standards Enforcement or contain the same information.
THE CONTRACTOR'S AND SUBCONTRACTOR'S PAYROLL RECORDS SHALL BE
SUBMITTED TO DISTRICT ON A WEEKLY BASIS. THE CONTRACTOR SHALL BE
RESPONSIBLE FOR SUBMITTAL OF SUBCONTRACTOR'S PAYROLL RECORDS.
Additionally, CONTRACTOR or subcontractor has 10 days in which to comply subsequent to
receipt of a written notice requesting the records enumerated in Section 1776, subdivision (a), of
the Labor Code. In the event that CONTRACTOR or subcontractor fails to comply within the 10-
day period, he or she shall, as a penalty to DISTRICT, forfeit One Hundred Dollars ($100.00) for
each calendar day, or portion thereof, for each worker, until strict compliance is effectuated.
DISTRICT may deduct this penalty from any monies due or that may become due CONTRACTOR
under this AGREEMENT.
(b) Contractor shall submit electronic payment records to the Department of Industrial
Relations.
14. Penalty, CONTRACTOR and any subcontractor under CONTRACTOR shall, as
a penalty to DISTRICT, forfeit not more than Two Hundred Dollars ($200.00) for each calendar
day, or portion thereof, for each worker paid (either by CONTRACTOR or any subcontractor under
CONTRACTOR) less than the prevailing rate set forth herein on the work provided for in this
AGREEMENT. DISTRICT may deduct the penalty from any monies due or that may become due
CONTRACTOR under this AGREEMENT. The difference between the prevailing wage rates and
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the amount paid to each worker for each calendar day, or portion thereof, for which each worker
was paid less than the prevailing wage rate shall also be paid to each worker by CONTRACTOR
or subcontractor, in accordance with Section 1775 of the Labor Code of the State of California.
15. Apprentices. If applicable, the provisions of Labor Code Section 1777.5 requiring
the use of apprentices in certain ratios to journeymen on the PROJECT are hereby imposed upon
CONTRACTOR.
16. Le+aal Day's Work. In the performance of this AGREEMENT, 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 employed by him hereunder except as provided in
Labor Code Section 1815. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections
1810 et seg.), 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 Twenty -Five Dollars ($25.00) for each worker
employed in the execution of this AGREEMENT by the CONTRACTOR or any subcontractor for
each calendar day during which any worker is required or permitted to labor more than eight (8)
hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said
article. DISTRICT may deduct this penalty from any sums owed pursuant to this AGREEMENT.
PROGRESS PAYMENTS AND RETENTION
18. Progress Payments. Pursuant to Public Contract Code Section 7201, prior to the
fifteenth (15th) day of the month next following the commencement of the work, there shall be
paid to CONTRACTOR a sum equal to ninety-five percent (95%) of the value of the work
completed since the commencement of the work as determined by DISTRICT and thereafter prior
to the fifteenth (15th) day of each successive month as the work progresses. CONTRACTOR
shall be paid such sum as will bring the payments up each month to ninety-five percent (95%) of
the value of the work completed since the commencement of the work as determined by
DISTRICT, less all previous payments and authorized deductions, provided that CONTRACTOR
submits his request for payment prior to the last Wednesday of each preceding month. Pursuant
to Public Contract Code 7107, DISTRICT shall make the final payment, if unencumbered, or any
part thereof unencumbered, within sixty (60) days after the date of completion. Notwithstanding
the foregoing, CONTRACTOR shall provide DISTRICT with all documentation required by this
AGREEMENT, including the Final Closeout Agreement and Release of All Claims, as well as any
other documents required by the CONTRACT DOCUMENTS such as as-builts, red -line plans,
manufacturers and specific guarantees, and owner's manuals prior to receiving final payment.
Payments shall be made on demands drawn in the manner required by law, accompanied by a
certificate signed by the Project Manager, stating that the work for which payment is
demanded has been performed in accordance with the terms of the AGREEMENT, and that the
amount stated in the certificate is due under the terms of the AGREEMENT. Partial payments on
the AGREEMENT price shall not be considered as an acceptance of any part of the work. Nothing
herein shall limit DISTRICT's right to withhold one hundred fifty percent (150%) of disputed
amounts in the event of a good faith dispute.
19. 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.
20. Retention Securities. Pursuant to California Public 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
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DISTRICT to insure performance of the AGREEMENT.
CHANGE ORDERS / EXTRA TIME / EXTRA WORK
21. Request for Extra Time or Additional Compensation. The following provisions
must be strictly complied with to obtain additional time to complete the job or to obtain additional
compensation:
(a) Request for Change Order — Additional Time. The CONTRACTOR shall promptly
notify the DISTRICT of any delay and shall, within ten (10) days from the beginning of any such
delay, notify the DISTRICT in writing of the cause of the delay, and the DISTRICT shall extend
the time for completing the work if in its judgment the cause so merits. The DISTRICT's
determination on this matter shall be final and conclusive on the parties hereto. CONTRACTOR
shall be required to submit a Request for Change Order, as set forth in this AGREEMENT, to the
DISTRICT'S PROJECT MANAGER within ten (10) days of the beginning of such a delay. No
adjustment shall be allowed for such delay unless there is strict compliance with this contractual
provision. CONTRACTOR's remedy shall be limited to the extra days granted and to any
damages that it may be entitled to using the formula agreed to by the parties for all damages as
provided in Section 22.
(i) Should CONTRACTOR claim that the DISTRICT is demanding extra work
from it or consider any work demanded of it to be outside the requirements of this
AGREEMENT or if it considers any instruction, ruling, or decision of the PROJECT
MANAGER to be unfair, he shall within ten (10) days after any such demand is made, or
instruction, ruling, or decision is given, file a written protest with the PROJECT MANAGER
stating clearly and in detail his objections and the reasons therefor. Except for such
protests and objections as are made of record, in the manner and within the time above
stated, the CONTRACTOR shall be deemed to have waived, and does hereby waive, all
claims for extra work, damages, and extensions of time on account of demands,
instructions, rulings, and decisions of the District Engineer.
(ii) Should CONTRACTOR claim that additional compensation is due it
because of an unforeseen condition, CONTRACTOR shall bring that to DISTRICT's
attention promptly and within ten (10) days and shall submit a written request for change
order within ten (10) days to DISTRICT.
(c) Request for Change Order — DISTRICT Form to Be Used. DISTRICT's Request
for Change Order form, which is attached hereto as part of this AGREEMENT, shall be the form
that must be submitted in a timely fashion for a request for either additional time or additional
compensation. By initialing, the CONTRACTOR specifically agrees to use said form for those
purposes and understands that, if he does not submit that form in a timely manner, he waives the
right to request additional time or compensation. No oral modifications or other forms of
communication shall be accepted as compliance with this provision. The written request for
change order requirement cannot be waived. Contractor's Initials IPA
(d) Change Order. Should DISTRICT agree that a change order is warranted for
either additional time or compensation, a written change order shall be executed. If DISTRICT
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does not agree to the change order, and CONTRACTOR has provided timely notices and
submitted its written request for change order in a timely manner and on the proper form,
CONTRACTOR will have preserved the issue for later resolution in compliance with other
procedures set forth in this AGREEMENT or as the law may otherwise allow.
(e) Change Order Authority. The following authority is given to approve Change
Orders:
(i) Change Orders for Extra Time. The General Manager shall have the
authority to grant extra days without limit.
(ii) Change Orders for Extra Compensation. The General Manager shall have
the authority to make change orders up to an aggregate amount of Ten Percent (10%) of
the original contract amount or Fifteen Thousand Dollars ($15,000), whichever is greater.
22. Damanes I 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 following damage formula shall be used to measure all of CONTRACTOR's
damages or extra work required by this PROJECT. CONTRACTOR shall be limited to the
following:
Direct casts
Mark-up
Labor 20%
Materials 15%
Equipment Rental 15%
Other Items 15%
Subcontracted work 10% (first $5,000)
Subcontracted work 5% (work in excess of first $5,000)
Specialty Subcontracting
(required by extra work) 5% (Provided at least three (3)
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 Section.
Contractor's Initials
SUBCONTRACTING
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Requirements not limiting. Requirements of specific coverage features or limits
contained in this Section are not intended as a limitation on coverage, limits or other requirements,
or a waiver of any coverage normally provided by any insurance. Specific reference to a given
coverage feature is for purposes of clarification only as it pertains to a given issue and is not
intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a
waiver of any type.
Notice of cancellation. CONTRACTOR agrees to oblige its insurance agent or broker
and insurers to provide DISTRICT with a thirty (30) day notice of cancellation (except for
nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each
required coverage.
Additional insured status. General liability policies shall provide or be endorsed to
provide that DISTRICT and its officers, officials, employees, and agents shall be additional
insureds under such policies. This provision shall also apply to any excess liability policies.
DISTRICT's right to revise requirements. The DISTRICT reserves the right, at any time
during the term of the AGREEMENT, to change the amounts and types of insurance required by
giving the CONTRACTOR a ninety (90)-day advance written notice of such change. if such
change results in substantial additional cost to the CONTRACTOR, the DISTRICT and
CONTRACTOR may renegotiate CONTRACTOR's compensation.
Self -insured retentions. Any self -insured retentions must be declared to and approved
by DISTRICT. DISTRICT reserves the right to require that self -insured retentions be eliminated,
lowered or replaced by a deductible. Self-insurance will not be considered to comply with these
specifications unless approved by DISTRICT.
Timely notice of claims. CONTRACTOR shall give DISTRICT prompt and timely notice
of claims made or suits instituted that arise out of or result from CONTRACTOR's performance
under this AGREEMENT, and that involve or may involve coverage under any of the required
liability policies.
Additional insurance. CONTRACTOR shall also procure and maintain, at its own cost
and expense, any additional kinds of insurance which in his/her/its own judgment may be
necessary for its proper protection and prosecution of the work.
29. Workers' Compensation.
A. 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 AGREEMENT, 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 AGREEMENT."
B. CONTRACTOR acknowledges that it is unlawful and a crime to intentionally make
false statements about employees that misclassify their job duties to obtain lesser premium costs
or for other improper purposes. CONTRACTOR agrees that if it makes false statements about
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its employees for the purpose of obtaining lower workers' compensation premiums or for other
unlawful purposes, it shall be considered a material breach of this AGREEMENT.
30. Bonds. Within the time period set forth in the CONTRACT DOCUMENTS and
prior to commencing the work on the PROJECT, the CONTRACTOR shall file with the DISTRICT
a good and sufficient labor and material payment bond (Payment Bond) and a performance bond
(Performance Bond) in the amount of one hundred percent (100%) of the Contract Sum covering
performance of the work other than the professional design services portion of the work. The
Performance Bond and Payment Bond shall be in the form required by the CONTRACT
DOCUMENTS. The amounts of the Payment Bond and Performance Bond shall be increased
as, when, and in the amount of any Change Orders that are executed increasing the Contract
Sum, the CONTRACTOR shall, upon request by the DISTRICT, provide evidence of such
increases. Should the Payment Bond or Performance Bond or any Surety on such bond become
or be determined by the DISTRICT to be insufficient, it shall be replaced within ten (10) days by
a bond that fully complies with the requirements of this Section. No further payments to the
CONTRACTOR for the work performed shall be made or due until the CONTRACTOR has fully
complied with the requirements of this Section.
Duration. The Payment Bond shall remain in effect until acceptance of the work by the
DISTRICT and payment of all stop notices and claims by the CONTRACTOR or the
subcontractors, of any tier, have been satisfied. The Performance Bond shall remain in effect
and assure faithful performance of all the CONTRACTOR's obligations under the CONTRACT
DOCUMENTS, including, without limitation, all obligations that survive final completion or
termination, such as, but not limited to, CONTRACTOR's warranty, commissioning, and indemnity
obligations.
Surety. At the time the AGREEMENT is signed, and at all times thereafter until final
payment has been made by the DISTRICT, the Surety on the Payment Bond shall be an Admitted
Surety, and the Surety on the Performance Bond shall be a licensed Surety in good standing with
the California Department of Insurance and have an A.M. Best's Insurance Rating of not less than
A-: V1.
Premiums. The premiums for all bonds are included in the Contract Sum and shall be
paid by the CONTRACTOR.
Obligee. The Payment Bond and Performance Bond shall each name the DISTRICT as
obligee. All bonds purchased by the subcontractors shall name the CONTRACTOR and the
DISTRICT as dual obligees.
No exoneration. Changes, Change Orders, Unilateral Change Orders, Field Orders,
modifications, and adjustments to the Contract Sum or completion date shall in no way release
or exonerate the CONTRACTOR or its Surety from their obligations, and notice thereof shall be
waived by the Surety. The foregoing provision shall be included in the terms of the Payment
Bond, Performance Bond, and any bonds obtained by the subcontractors.
Communications. The DISTRICT shall have the right to communicate with the
CONTRACTOR's Sureties with respect to matters that are related to the CONTRACTOR's
performance of its obligations under the CONTRACT DOCUMENTS. CONTRACTOR shall be
provided with a copy of all such written communications. Such communications shall not create,
or be interpreted as creating, any contractual relationship between the DISTRICT and the Surety.
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its employees for the purpose of obtaining lower workers' compensation premiums or for other
unlawful purposes, it shall be considered a material breach of this AGREEMENT.
30. Bonds. Within the time period set forth in the CONTRACT DOCUMENTS and
prior to commencing the work on the PROJECT, the CONTRACTOR shall file with the DISTRICT
a good and sufficient labor and material payment bond (Payment Bond) and a performance bond
(Performance Bond) in the amount of one hundred percent (100%) of the Contract Sum covering
performance of the work other than the professional design services portion of the work. The
Performance Bond and Payment Bond shall be in the form required by the CONTRACT
DOCUMENTS. The amounts of the Payment Bond and Performance Bond shall be increased
as, when, and in the amount of any Change Orders that are executed increasing the Contract
Sum, the CONTRACTOR shall, upon request by the DISTRICT, provide evidence of such
increases. Should the Payment Bond or Performance Bond or any Surety on such bond become
or be determined by the DISTRICT to be insufficient, it shall be replaced within ten (10) days by
a bond that fully complies with the requirements of this Section. No further payments to the
CONTRACTOR for the work performed shall be made or due until the CONTRACTOR has fully
complied with the requirements of this Section.
Duration. The Payment Bond shall remain in effect until acceptance of the work by the
DISTRICT and payment of all stop notices and claims by the CONTRACTOR or the
subcontractors, of any tier, have been satisfied. The Performance Bond shall remain in effect
and assure faithful performance of all the CONTRACTOR's obligations under the CONTRACT
DOCUMENTS, including, without limitation, all obligations that survive final completion or
termination, such as, but not limited to, CONTRACTOR's warranty, commissioning, and indemnity
obligations.
Surety. At the time the AGREEMENT is signed, and at all times thereafter until final
payment has been made by the DISTRICT, the Surety on the Payment Bond shall be an Admitted
Surety, and the Surety on the Performance Bond shall be a licensed Surety in good standing with
the California Department of Insurance and have an A.M. Best's Insurance Rating of not less than
A-: VI.
Premiums. The premiums for all bonds are included in the Contract Sum and shall be
paid by the CONTRACTOR.
Obligee. The Payment Bond and Performance Bond shall each name the DISTRICT as
obligee. All bonds purchased by the subcontractors shall name the CONTRACTOR and the
DISTRICT as dual obligees.
No exoneration. Changes, Change Orders, Unilateral Change Orders, Field Orders,
modifications, and adjustments to the Contract Sum or completion date shall in no way release
or exonerate the CONTRACTOR or its Surety from their obligations, and notice thereof shall be
waived by the Surety. The foregoing provision shall be included in the terms of the Payment
Bond, Performance Bond, and any bonds obtained by the subcontractors.
Communications. The DISTRICT shall have the right to communicate with the
CONTRACTOR's Sureties with respect to matters that are related to the CONTRACTOR's
performance of its obligations under the CONTRACT DOCUMENTS. CONTRACTOR shall be
provided with a copy of all such written communications. Such communications shall not create,
or be interpreted as creating, any contractual relationship between the DISTRICT and the Surety.
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No limitation. The requirements of this Section pertaining to the Performance Bond and
the Payment Bond shall be without limitation to any other obligations the CONTRACTOR may
have under applicable law to provide bonding for the benefit of and to assure payment to the
subcontractors or subconsultants performing the work for the PROJECT.
TERMINATION
31. Termination.
A. If CONTRACTOR should fail to comply with any of the provisions hereof, 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 AGREEMENT 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 in compliance with any provision of this
AGREEMENT, 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) day 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 due or that may become
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 AGREEMENT in whole
or in part at its convenience. In such event DISTRICT shall compensate CONTRACTOR, subject
to deduction for previous payments and authorized deductions, by: (i) reimbursing
CONTRACTOR for all actual expenditures and costs incurred in performing under this
AGREEMENT, (ii) 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 AGREEMENT, and (iii) paying CONTRACTOR
as a profit, insofar as a profit is realized hereunder, an amount equal to the profit on the entire
AGREEMENT 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
AGREEMENT price less payments previously made and less the AGREEMENT 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 AGREEMENT, (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 AGREEMENT.
CLAIM RESOLUTION
32. Resolution of Claims. For all claims that are Three Hundred Seventy -Five
Thousand Dollars ($375,000.00) or less, the provisions of Public Contracts Code Sections 20104
et seg. (Article 1.5 - Resolution of Construction Claims) shall be followed.
33. Notice to Contractor of Claims. DISTRICT shall provide notice to
CMSD 2023 A-1 3 Agreement
DocuSign Envelope ID: 2B06F53B-FDB1-4E3B-9A00-483FCD770308
CONTRACTOR upon receipt of any third -party claim related to the AGREEMENT.
CONTRACT DOCUMENTS AND INTERPRETATION
34. (a) Other Documents Included. It is further agreed by the parties hereto that the
following documents are incorporated herein by reference and are to be read and construed
together as the full, complete, and integrated terms of this AGREEMENT and, collectively with
this AGREEMENT, may be referred to as the CONTRACT DOCUMENTS:
A. Notice Inviting Bids
B. Instructions to Bidders
C. General Provisions
D. Proposal
E. Construction Plans
F. District Public Works Standard Plans
G. District Request for Change Order/Change Order
H. Notice to Proceed
1. Labor and Materials Bond
J. Performance Bond
K. Final Closeout Agreement
(b) Interpretation of Incorporated Documents. In the event of any conflict,
inconsistency or incongruity between the provisions of this AGREEMENT and the
provisions of any document listed in Subsection (a) above, the provisions of this
AGREEMENT shall prevail unless a contrary intent is shown. This AGREEMENT
shall be interpreted as though it had been drafted by the DISTRICT and the
CONTRACTOR equally. This AGREEMENT shall be interpreted according to the
laws of the State of California.
36. Intearation/No Oral Modifications. This AGREEMENT integrates all
understandings of the parties. Any amendment to this AGREEMENT must be made in writing
and signed by the parties with legal authority to execute the same. CONTRACTOR is aware that
DISTRICT is a special district and that, pursuant to Health and Safety Code Section 6487, contract
amendments may only be entered into by compliance with those formalities. Notwithstanding the
above, requests for additional time or compensation may be made by following the procedures
provided for in this AGREEMENT.
36. Effect of Invalidity. The invalidity in whole or in part of any provisions hereof shall
not affect the validity of any other provision.
MISCELLANEOUS
37. Discrimination, Minorities, Aliens. The CONTRACTOR shall not discriminate
nor allow its employees, agents, principals, or subcontractors to discriminate against any
employee or applicant for employment on the basis of race, religious creed, national origin, or
sex. CONTRACTOR shall take affirmative steps to hire qualified minority individuals when job
opportunities occur and utilize local business firms when possible and when consistent with
California Constitution Article 1, Section 31 (a) (Proposition 209].
38. Egual Employment Opportunity. CONTRACTOR shall comply with all
CIVISD 2023 A-14 Agreement
DocuSign Envelope 11): 2B06F53B-FDB1-4E3B-9A00-483FCD770308
provisions of Executive Order 11246, entitled "Equal Employment Opportunity" and amended by
Executive Order 11375, and as supplemented in Department of Labor Regulations (41 CFR part
60).
39. 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 will provide 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) Establishing 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; and
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 AGREEMENT be given a copy of the statement required by Subsection (a);
(d) Notifying employees in the statement required by Subsection (a) that as a condition
of employment under the AGREEMENT 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) Notifying DISTRICT in writing within ten (10) calendar days after receiving notice
under Subsection (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 Subsection (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 Sections (a), (b), (c), (d), (e), and (f).
40. Permits. The CONTRACTOR shall obtain from the DISTRICT, County, City,
State, or other responsible public agencies all licenses and permits, and pay all fees related
CIVISD 2023 A-15 Agreement
DocuSign Envelope ID: 2B06F53B-FDB1-4E3B-9A00-483FCD770308
thereto, necessary to complete the job.
41. Assignment. No assignment by the CONTRACTOR of this AGREEMENT 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.
42. 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.
43. Utility Location. DISTRICT acknowledges its responsibilities with respect to
locating facilities pursuant to California Government Code Section 4215.
44. Trenchina. If this AGREEMENT involves digging trenches or other excavations
that extend deeper than four (4) feet below the surface, CONTRACTOR shall promptly, and
before the following conditions are disturbed, notify the DISTRICT 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 1, Class 11 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 AGREEMENT,
The DISTRICT shall promptly investigate the conditions, and if it 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 AGREEMENT.
In the event that a dispute arises between the DISTRICT and the CONTRACTOR as to
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
AGREEMENT but shall proceed with all work to be performed under the AGREEMENT. The
CONTRACTOR shall retain any and all rights provided either by this AGREEMENT or by law
which pertain to the resolution of disputes and protests between the contracting parties provided
that CONTRACTOR complies with Section 21 when asserting such claim.
45. Notices. The parties hereto agree that all formal notices required by this
AGREEMENT may be provided to the following persons at the following addresses by sending
the same by certified or registered mail as follows:
CMSD 2023 A-16 Agreement
DocuSign Envelope ID: 2B06F53B-FDBI-4E3B-9A00-483FCD770308
DISTRICT: Costa Mesa Sanitary District
290 Paularino Avenue
Costa Mesa, CA 92626
CONTRACTOR: Vicon Enterprise, Inc.
11642 Knott St. Ste.E-20
Garden Grove, CA 92841
46. 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 AGREEMENT or securing favorable treatment
with respect thereto.
47. Conflict of Interest. CONTRACTOR warrants that he has no blood or marriage
relationship with, and that it is not in any way associated with, any architect, engineer or other
preparer of the plans and specifications for this PROJECT.
48. Copeland "Anti -Kickback" Act. If applicable to this AGREEMENT,
CONTRACTOR and its subcontractors shall comply with the provisions of the Copeland "Anti -
Kickback" Act (18 U.S.C. Section 874), as supplemented in Department of Labor regulations,
which Act provides that each contractor shall be prohibited from including, 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.
49. 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 AGREEMENT, 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 a third party requiring DISTRICT to defend itself. Notwithstanding the foregoing,
costs and attorney's fees shall be available pursuant to Code of Civil Procedure Section 386.6 in
connection with an interpleader.
60. Assignment of Rights. Pursuant to Section 7103.5 of the Public Contract Code,
in entering into a public works contract or a subcontract to supply goods, services or materials
pursuant to a public works contract, the CONTRACTOR or subcontractor offers and agrees to
assign to the awarding body all rights, title, and interest in and to all causes of action it may have
under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2
(commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code),
arising from purchases of goods, services, or materials pursuant to the public works contract or
the subcontract. This assignment shall be made and become effective at the time the awarding
body tenders final payment to the CONTRACTOR, without further acknowledgment by the parties.
51. SCACINID and CARE Compliance. CONTRACTOR agrees to comply with all
South Coast Air Quality Management District (SCAQMD) and California Air Resources Board
(GARB) requirements, including, but not limited to, compliance with GARB Regulations limiting
idling of self-propelled diesel -fueled on -road and off -road vehicles and equipment (25 HP and up)
to no more than five (5) consecutive minutes as specified in Title 13 of the California Code of
Regulations, section 2449 (d)(3), Idling.
CMSD 2023 A-1 7 Agreement
DocuSign Envelope ID: 2B06F53B-FDB1-4E3B-9A00-483FCD770308
62. Mined Construction Materials. CONTRACTOR shall not purchase mined
construction material 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-lisVcurrent-list.
IN WITNESS WHEREOF, the parties hereto have entered into this AGREEMENT the date
and year first above written.
ATTEST:
A
D)§trict alk
APPROVED AS TO FORM:
District Counsel
DocuSigned by:
Off (AWA
7r951,qf)nAqRnA;:r:
District General Manager
COSTA MESA SANITARY DISTRICT:
CONTRACTOR:
Name: Vicon Enterprise, Inc. a California
Corporation
Address: i ( Vw 4 � V-Pc7—i 3Tu- - 3t o
Signatu'43 4 /'
Print Name:.' --I-,- t V t4tf
- .fit
—
CMSD 2023 A-18 Agreement
DocuSign Envelope ID: 2B06F53B-FDB1-4E3B-9A00-483FCD770308
STATEmil¢ AlIFIDRl l t
M
COUNTY „ OF _zz
? 4 2r,` b fcr ? ' u d °-�;',,: € 3 ? `y ut ll ^ tat
y' d
personally appeared r rs�,zss � wr_ _ who prove
to me on the basis of satisfact r� evidence to be the person `' whiose narrie5;) are subscri ezJ
to the within instrurnert and acknowl d d to.141)e that helsh /they execdIed the sane in
'Mh +r authorized capacity s), and that b,,t. f rrtfi jr Signature = n .rejje nstrurnert tbe
p rs n((i or the entity upon behalf of which the per sea(acted.. executecl the rnsflrurnent
I certify under P A,,,-T ` OF PE:PJUR'Y under the lar.,s oftne Mate ,.,)f Cartfornia }hat the foregoing
paragraph is tree and cxrfe ct
VVITNESS rny na,r)d and official seal,
E
s
M aD a. 2 A- t q Aq4reernert
DocuSign Envelope ID: 2B06F53B-FDB1-4E3B-9A00-483FCD770308
7HE :�I�iAL PRENA'i_Jv1 IS
FRE011CATED ON THE
P N.";_ Cofil-, rAr-T PP icE
FAITHFUL PERFORMANCE BONE
FAGE Bond No. 2343686 1
• -1 0 4
laff.-all 0 1
THAT, WHEREAS, COSTA MESA SANITARY DISTRICT (DISTRICT), a California
Sanitary District, has on April 26, 2024 awarded to
Vicon Enterprise Incorporated, 11642 Knott St, Ste 20, Garden Grove, CA 92841
hereinafter designated as the "PRINCIPAL," an AGREEMENT for the work described as follows:
CIVISD #330 Westbluff Pump Station Rehabilitation Said AGREEMENT is
fully incorporated herein by reference.
WHEREAS, the said PRINCIPAL is required under the terms of said AGREEMENT to
furnish a bond for the faithful performance of said AGREEMENT.
NOW, THEREFORE, WE, the undersigned CONTRACTOR, as PRINCIPAL, and
(Name and Address of Surety)
Swiss Re Corporate Solutions America Insurance Corporation
777 S Figueroa Street, Suite 3700, Los Angeles, CA 90017
hereinafter designated as the 'SURETY," duly authorized to transact business under the laws of
the State of California. , as SURETY, are held and firmly bound unto the Costa Mesa Sanitary
District, in the penal sum of: Three Hundred Thirty -Eight Thousand Eight Hundred Twenty and
00/100 Dollars ($338.,820-00), said sum being not less than one hundred percent (100%) of the
estimated amount payable under the terms of the AGREEMENT for which payment well and
truly be made, we bind ourselves and our heirs, executors and administrators, successors and
assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that, if the above burdened
PRINCIPAL, his/her/its heirs, executors, administrators, successors, or assigns, shall in all
things stand to and abide by, and well and truly keep and perform all the undertakings, terms,
covenants, conditions, and agreements in the said AGREEMENT and any alteration thereof
made as therein provided, on his or their part, to be kept and performed, at the time and in the
manner therein specified, and in all respects according to their true intent and meaning, and
shall indemnify and save harmless the Costa Mesa Sanitary District, its officers, and its agents,
as therein stipulated, then this obligation shall become null and void, otherwise it shall be and
remain in full force and virtue.
DocuSign Envelope ID: 2B06F53B-FDB1-4E3B-9A00-483FCD770308
FAITHFUL PERFORMANCE BOND
PAGE 2
Bond No. 2343686
In case suit is brought upon this bond, SJRETY further agrees to pay all court costs and
reasonable attorney's fees as fixed by the court.
And the said SURETY, for value received, hereby stipulates and agrees that no change,
extension of time, alteration, or addition to the terms of the AGREEMENT or to the work to be
performed thereunder or the specifications accompanying the same shall in any way affect its
obligations on this bond. and it does hereby waive notice of any such change, extension of time,
alteration, or addition to the terms of the AGREEMENT or to the work or to the specifications.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this 2911'
day of _ April , 2024.
CONTRACTOR
(ADDRESS)
PR1N IPA ion E terprise Incorporated
r
By:
Company epresentative
In accordance with the AGREEMENT, all bonds shall have been 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.
By signing below. SURETY certifies that the bonds are issued by admitted surety
SURETY iss Re Corporate So s America Insurance Corporation
By:/M
om any Repr e Shaunna Rozelle Ostrom, Attorney -In -Fact
APPROVED AS TO FORM:
District Counsel
Costa Mesa anitary 9stry
DocuSign Envelope ID: 2B06F53B-FDBI-4E3B-9A00-483FCD770308
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange
before me, Melissa Ann Vaccaro, Notary _Publi,-,
(insert name and title of the officer)
personally appeared Shaunna Rozelle Ostrom
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(les), and that by his/her/their signatUre(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) 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,
Signature(Seal)fy
Melissa Ann Vaccaro
DocuSign Envelope ID: 2B06F53B-FDB1-4E3B-9A00-483FCD770308
llond Nip. 2343OX6
SWISS RE CORPORAT .SOIA TlONS
Swiss RI' CORN )t0I I. Sol _i, 11ONS ' NILKK'A INWR ANCL t`t1Ri'(�)R VHON ►'YZCI' \It" y
51ro iSS RI. CUfit'tlit�l if: SO! t`I"lt)S I'Ki�Afit:K lSt'it\ �C`l: <'t)Rt't)R:A"t IC)N `Sl�t'Si'iC.,,i
\\�l:S�11'OKI� t�.t5t'i(A'SCf COI(i'(�ICAI'ION (`\l'tt"`t
f:F:NERAL PONNTIR [?F %T 1'ORNEY
KNOW .ALI MEN BY I Iil,Sl:. PI{I'SIa1'�, FKA ISICCSAIC. a corporation duly organized and cxistirig imdcr laiv�selt'thc Siatc (rt" %'Itssouri, and
havir)g its principal office ill the City of`Kamsas City. Mi souri. ;arid SRCSPIC, a Corlwation orb aniaed and eyistiirg under the 1atws- ot'thc State cif
y1is ouri itnd hayinsl it, principal olfice in the: City, ol' Kxisas City. M i souri, and \V'I(`_ orgarii,/ed under fhe laws (11,111c State of `vlissouri. and having its
priiicipal 0111ce in the City of Kansas City, missmiri. each dies hcretsy crake, ccir►stitute and appoinf.
I),ANlH IIttCK \I1\Y, A10-1!RC) \Y,Al _V DWI(illt Iii 1I_I Y.'%If Ni NNA RO/H I I'O%IWY\-J. Fl-\NK NIOPMNI;S.
MICfl U1, D. STON(i. M N SI'W) 6. 1{, N"\11111. (('111TSI \ I_I13I-IC 1TORF, .rl)lZI \Ni 1.AN614I I I..;md4FNl vMIN W01 iJ'
JOIN 11 Y OIt SFb`I.tE,Al I �'
its true and ia",Wl Mtoniey(sl-in-1 act, to ruakc. cxectitc, seat aria dcfivper-, for and on it,; behalf and :is its act and dcc(1_ hoiids or otftcr vvritill—;
Obliutiltor% iti the nature: of a hoed on bclmll'ofcach of'said Compaoic" tr, surety, olr cofacwts of surct� aiifi a, are or *ii.tk le acquired or lx rm4tcd by
law, regallati(m. contract or othery ise. }prov i&d that rite bond or timla:riahini or c-onlmct or,aaretyship C Cured uri"Ier tlri; authority shall e wced the
anrourrt ol: .
ONI Ill lNDRI I) I Wl N I Y-HYh *MIL ION (SI25.0oo.tltttimol D( )I-t..ARS
I his Powei� cif ktlortiey is granted and is signed h} facsu niie under arcs by the atithoritr of the 1i011ucving i emilwiorrs Aoptcd by the lloards tit
Director,- of h0th SIZUS,AI ` and SICCSPIC at lntietings dulc Called and held on the i Rth of Novcmlvr 2021 :end WIC by written consent of its
Lxecutive Committee elated h)by i X. 2011.
Itl`S[)l.lrh,ty. th:ct arty tvvo tifthc I'resident. auiv Mallauing i)irccwr.am 41icc flrz:,idcw, a M Vicc Pre�idcht_ the Secrctaryof any �1s,i tcuN
Secretary be. and each or any (if'thrni hcrchv is. authorized to execute it Power til':Attortrcv clualli'ving the attorney rained iri fife riven 1'owcr of
Attorney to C\ ate on helm II'of`the Corporation Ixrnds. trndcrtakinyN and alI wiltracis ofsurety, and that each or ang of them hcrely% is authorized to
attest to the ext' ution ol'<ally s:rch Povverof ,komiie,. and to attach therein the seal oCthe Coiporaiiotl: :ind it is
i Lfk1I It-'[( RESOI.VLD, that the signature ol'sucli ol'ficers and the a:al of the Corporattion !nar) he at'lixed tt; a:iy Mich Powet of'Attomey or to
any certilicatk: relating thereto by Iacsimilc, and am Bitch rower of:lttorriz. or ceililicate bearing! <tich 411e,i1itilG sig,�iature, or facsimile seat shall he
hindine urxxr the Corlxiration vvhe►l so affixed arrd tit the lutuic with redtard to anv IN)nd, witlertaking or contrast ot';arct+ to which it isattached."
sl*
{alp [�
eISr`
A L frik.�antsrnt, Geninr Yr"inr 1'rvidrnr as `ik(ti t 11' .fc'�+�ninr \'ia� F'.r.ident
tGG iY. �s sa
{ t . ;� ff
tom. "Zaafa
'•.rtr � r" r t � ` Crr'nlit JALt 41%—, Vi.c t'r r,0itnt of SR(N J( \ arc l'�criclrnt of lla< St+ai t
S \ire a'rrxidntt of A ►C
IS! W Cl';' TNS W111,10;4 It SIC('SAIC. SR( Silk -aid \\'I(' have cxu 1scd their ot'ficial seals tot he hcrcnut,t .af fixed_ acid fliesprc,crii, t(r be ;lg;ncct h) their
atithotizM ol,t icers
this 10 day tit NOVEMBER )11 22
Swiss Ire C'orpm-atc Solutions :America Insurance Corporation
State otAllinois Swiss Re Corlwratr Solutions Premier Insurance C'nrptir.ation
County ol'(`ook s' \1rsili(rrt Insurance Corporation
()ra this 10 d:av, it- _ NOVEMBER 2f1 _22 , belt irkrne. a ''Noulr� Tarlac per,terlally apl%:mcd i'1-1k J dlt>scft , Scauarr \`ict l'resi<fent ut'SItCS:11C'
and Seri+�r V'ice t'reside nt at SRt`5PIC' arid Semor Vice President of \VIC" a►d <i4ra!<I J ��src�t�ski _ �'lrc l'r ;r(tcnt ot` 04SAIC aid Vice President Ill'
Sl'CSI't(` a►i<l Vice l'rc;idcnt of \V'IC, pirsoi ally known to nee, who ixing, h} me dal) ,worn ackito-wledvcd thcts. they ,igJcd tare ahoy c €'evvcf ctf .Atit�riie}
as (iflierrs cif' iu►ti ackncrwlcdgc:d said Instrument to Pic the %oluntar} ;wt and dred ot'their reshcctice OIVpattics
OFFMMAL SEAT.
CHMS71NA MAMSCO
1. left (,i(>1 tt_n4, Ow ilifiv e't':irdeI l'-LL th i;lctit 310 Visl,t.ant SeI:rctarvt of'SR('ti:t\fl(' and SRC'M11C and tic'#C°. <io licr by eertitt that the shove a11(1
lorc< ouig ►s a tor-- anti r,.irn_ t espy of a ni' �vttoruey g.iw i by said SRC S MC and SRC`Sl't(' and WIC, which i,, Shia in leaf force and efti et
IN W yrf itil:55 V `f l .ta;O! . 1 h.avc ,et ntv hah:l and asii\cd the >cau(s cif'the Ccttnpanic, this 29thdav pit �April
Jetties r oldherg senior b iee President Lt
\srktarit lecretaar% tit SKCSA1( tatd
'114 � PR and \V'tC
DocuSign Envelope ID: 2BO6F53B-FDB14E3BAP00483FCD770308
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NOTARYPUBOC -CALIFORNIA n
LOS ANGELES COUNTY
tit; Gomm bpuesMarch 2,2026
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IONA! I I N I A I I X
I -W)c u m I 1 I -
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DocuSign Envelope ID: 2BO6F53B-FDBl-4E3B-9AOO-483FCD770308
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PREDxArEDow71HE
PAYMENT BOND
PAGE 1
Bond No. 2343686
COSTA MESA SANITARY DISTRIC
PAYMENT BOND
(LABOR AND MATERIAL BOND)
THAT, WHEREAS, the COSTA MESA SANITARY DISTRICT, emunicipal corporation,
by minute order of the Board of Directors, adopted on April 26, 2024 has awarded to
CONTRACTOR
(NAME AND ADDRESS OF CONTRACTOR)
viconEnterprise Incorporated, 11G42Knott Ave Ste 2O.Garden Grove, CA92941
Hereinafter designated osthe ^Phncipa|".acontract for the workdescdbedaahoUowe-
WHEREAS, said Principal is required by the provisions of said contract and ofthe Civil
Code to furnish a bond in connection with said contract, as hereinafter set forth,
NOW, THEREFORE, WE, the undersigned CONTRACTOR, as Principal and
Swiss Re Corporate Solutions America Insurance Corporation, 777 S Figueroa Street,Su/usaroo Los Angeli,,s.CA 90017
(Rame and Address of Surety)
Duly authorized to transact business under the laws of the State ofCalifornia, as Surety, are
held and firmly bound unto the Costa Mesa Sanitary District, in the penal sum of -
Three Hundred Thirty -Eight Thousnad Eight Hundred Twenty and 00/100 Dollars'
$338,820.00,-said sum being set per Civil Code Section 9554 at one hundred (100%) percent of
the estimated amount payable under the terms of the contract for which payment well and truly
be made, we bind ourselves, our heirs, executors and administrators, successors and assigns,
jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that, if said Principal or his
mubcontraotors, or the heirs` executors. administrators, shall fail
to pay any of the persons named in Section 9100 of the Civil Code of the State of California for
any nnehshg|g, provimiono, provender or other supplies used in, upon, for or --bout the
performance ofthe work contracted iobedone, orfor any work orlabor perf-'
performed any such
claimant or any amounts required to be deducted, withheld, and paid over to the Employment
Development Department fromfromthe wages of employees of the CONTRACT --' and his
subcontractors pursuant to Section 13020 of the Unemployment Insurance Codewith respect
tosuohworkend|abor.thenseidSu/etyvvi||poy[orthesarne.inenarnoun(no\` exceeding the
sum set forth hmneinabove, and in addition, in case suit is brought upon the bond, will pay a
reasonable attorney`a fee to be fixed by the court.-
This bond �h�|( inure <o �h� �o'—'^t of any
and all persons named in the aforesaid Civil Code Section 9100 so as to give aright -'action to
them ortheir assigns inany suit brought upon the bond,
DocuSign Envelope ID: 2B06F53B-FDB1-4E3B-9A00-483FCD770308
PAYMENT BOND
PAGE 2
Bond No. 2343686
Further, the said Surety, for value received. hereby stipulates and agrees that no
change, extension of time, alteration or modification of the contract documents or of the work to
be performed thereunder shall in any way affect its obligation on this bond; and it hereby waives
notice of any and all such changes, extensions of time, and alterations of modifications of the
contract documents and/or of the work to be performed thereunder.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this-29th
day of April
Vicon Enterprise Incorporated
Contractor Name
11642 Knott St, Ste 20
Street Address
Garden Grove, CA 92841
City, State, Zip Code
PR 1, INC L con En rprise Incorporated
By':
-pr en ative
In accordance with the Contract for CIVISD #330 Westbluff Pump Station Rehabilitation
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.
By signing below, Surety certifies that the bonds are issued by an admitted Surety.
Swiss Re Corporate Solutions America Insurance Corporation
Name
777 S Figueroa Street, Suite 3700
Street Address
Los Angeles, CA 90017
City, State, Zip Code
SUR Y -�5 ' ss He cor ora 'of tuns America Insurance Corporation
S
By:
comnSepresentattive Shaunna Ro7elle Ostrom, Attorney -I n- Fact
DocuSign Envelope ID: 2B06F53B-FDB1-4E3B-9A00-483FCD770308
Tffifllry'k
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 f that document.
State of California
County of Orange
On April 29, 2024
before me, Melissa Ann Vaccaro, Notary Public
(insert name and title of the officer)
personally appeared Shaunna Rozelle Ostrom
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) 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.
Signature (Seal)
Melissa Ann I Vaccaro
DocuSign Envelope ID: 2B06F53B-FDB1-4E3B-9A00-483FCD770308
Bond No. 214 ]ht;b
SWISS RE CORPORATE SOL TiONS
SWISS W- C'01001 .ATI: SOLUTIONS AMI RICA INS( WANCT COi2PORATION ("SRCSAI(`")
SWISS iZI C'ORP( AIF SOW11ONS PRUMILR INSI=ItANC*I.('OKI'OItA1'IONt ('SRCSPtC°'}
1C FS`T'1'C)R'i" iNSURANCI: CORPORATION ("WIC") GENERAL
ENERAL PONWR 01 A ORNEA'
KNOW AI T MFN I3Y I I II'.St: PRFSF�N FS, 1-1lA I ` 10'SAIC. a curl-wration duly organized and cyisting under laws of the State of missouri, and
having its principal offices in the City of Kan>as City. Missouri, and SRUSPIC, a corporation organizctl ,in(] eaistirn-, under the laws (it' the State of
Missouri and having its principal office ill the City of Ka tstu City. Missouri, and WIC', organized us tinder the tawofthe State ol'klisscmuri, and leaving its
principal office in the City of Kansas City. Missouri, each does herchy snake, constitute and appoint?
i)r Nwl. I ItICKABAY, AIU 010) AYAI.A, DWI(,I1-1 It1:111Y. SILNUNNA W/F1 f 1, OS'I ltt,)\I, FKANK NIOItONI S.
MICHAfa.I). S 0\6. 131ati S"fON(i� R. N:AI'PI, (` 1FI.SI A i II3FWV'i'0RF, Etil)Iti \N ItN6ICFa.1_, and BI-1N.I,V\IlN WOf_I'1
JOINTLY Ott SI:Vl,kAI,LY
Its true and lawful Alto rneys)-in-I pac(. it) make. execute, seal and deliver, (or and on its behalf arut as its act and deed, Isonds or other writings
ohlioator)° in file nature ol'a hand on behalfofeach of said Companies, as surety, till contracts ol'sctrelyship as are or imq he required or permitted by
taw, rt gulation. contract or othenvisc, provided that net bond or undertaking or contract or suretyship executed uttdcr tits authority shall exceed the
amount of
ONF lit"NIDitl1) 11h"1.N f y'-I.1VI MILLION (St25,000.oflio.tttl) 1)011.:1ItS
This Power of Attorney is granted and is signed by facsimile under and by the authority ofthe litflomving IZesolutioas adopted by the i3ctards of
Director, ol'both SRC ;SAIL' and SRCSPIC at rnectings duly called and held ors the Iflth of'Novemlier 2021 and \\A* by written consent of' it's
Executive Committee dated July 18. 201 1.
"RESOI.VI;.1), (flat any two ofthe President. any Managing Director.. ally Senior Vice President, all),Vice President, the Secretary orany Assistant
Secretary lie, andeach or any ofthem hereby is. authorised to execute it Power of Attorney qualifying tits attorney named in the: given Power of
A(tar►tey to execute ors helaal!'crf etc C'vrporation borjds, undertakings and all contracts crf surety, and that each or am erf tlaena herchy is authorized ter
attest to the cWcuticrn (Wally such Power crf Attorney and to attach therein the sett( ofthe Corporation, and it is
f 1�R'111E:1t RESOi.V11), that the signature or,mch otticers and the seat ofthe C'crrporatimi may he affixed tie am such Power of Attorney or to
any certificate ate ta:lating thereto by facsimile, and arts such Power crf Allorney or certificate bearing such tacsimile ti n::tares or facsimile seal shrill be
hindirtsa anon the Cctrparatian tvllela so allied and in else fttturc vkith regard to rosy Kind, undertaking, or ctinUact of,urety to which it is attached.**
saa� a a��ttprr aNtl�Ntrrr+,
r r� : Cry � t `� "� 13 y �►
F (�y{{ : �iG fi silk Jan senw 4irniur Vice President cof SRCN' l lU & Senior Vice Prem*denl �
p, m - O : s or SR! :tiPlf' +arc Senior Vire Crrsidenl of �Vtt
L 19?3 'rss- -Os a'
tjSS eIE' -�.vTd, ,/S�.�0Y`. ti A. t any .•'
xa,*,�xr ` S ) t,rrAd JazruwtW. Vita Prreiident nrSKC.sA1(A Vice President a(SR( SPU
tIflN rt t�1iH 1t
& Vice t'rraideni nf%Vlt'
IN WlTNI-1SS Wl tl,:tdl ()I', SR('SAIC. SRCSPIC. rrnd WIC have caused their officrt ,eats ter Ix he rcunto atlixed. and thoe presents to lu: signed by their
authorized officers
this It) day of NOVEMBER ?t) 22
Swiss Re Corporate Solutions America Insurance Corporation
State: of Iltinois Swks lie Corporate Stdtltions Premier Insurance Corporation
County afCotak 9Wcstport Insurance Corporation
Ott this ._10_ day of- NOVEMBER 2(l 22 bc:l<)rc me, a Notary Public persotialix appeared t:rik Janssens . Swnierr Vice l'resitcntofSKCSAIC`
and Senior Vice President of MWSPIC' and Scnior Vicc President of WIC' and Cicraid Ja�_rows-ki . Vice l'resl&itt erf%fWSAI(' and Vice Presiticnt of
St'CSPIC and Aire President of WiC, Personally known to tire, w^ho bring by me duly sworn, acknowy sit tedgcd Hutt thcned the above Powet ofAltorney
as of'ricer, of and acknowledged said instrument to lie the voluntary act mid deed oftheir resivctive c:ompamcs,
ocrtolALSE u..
Ci-�A MANIS 0
tMOTittlf t'11BI tC� BTAtEolc t�1NCli
F�vows iYrtR W0-
L i b
1. Jcffi-ct (ioldhcrthe duly ei:ct:ct , r)yjr 1'icy 1'te:_te at ;jnd Assistant Secretary of SRUSAIC and SRCSI'W and kti W sect herchy certify that the: atxtve and
foregoing is a trite and correct cop oil a !asJt; r,r JI .<istot r , ; given by said SIRSnIC and SRC'SI'i(' and Wl(', which is still tit still tixce at' c lied
IN WITNPSS Wlfl'.Rt ()r, t 113 t. set nVY hand anJ aflv;cci tile.cals of the. Contpamcs this 29iltday of _ April 2() 241
.101rey (hrldherg, Senior Vice President K
Yssislant Secretary oI S R( `;vIC ;and
SIWSl'l(I and WIC
DocuSign Envelope ID: 2BO6F53B-FDB1-4E3B-9A00-483FCD770308
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A rowry public or other offi(er, mnwletinthis certifictee vei"fies only the idewlity of
i th -, individual who signe(I the dcxurm-,rnt to v,,,hich this cei tificatE: 1� 3ita( hel and not
th,", tri-ithfulness, accurac".". ulvalrd';ty of thIt document.
'Aate of Californil
—!"Jnty of A rL u2
o� !--onally ippeared
vl!lio proved to me on the ba�J,, of 4'ItlJac-tory evidence io be ihe
iL'I t W Aibscnl,>od to I, he v.: It hir, :"I" and ackn-,)v,,Jecjg(-.J ton,,e thit
o, n) i-
executled th(� sarne 0,11M0 ,1wr�w') ir uthcil-zed and that by
hi--,) ic,r/their sig oi flf*�c' "Inlity upon beha!f
1, the pe(son(k
�T)vvhidh the "I( tod' exe�. (Ited the kV5trLjrP.eW,
unde� 'he la%vvs of tho �f-at;- of �.o,;jfmrfa t I r- t ty n ck, r 1) Ei`� A U'Y -1 r I 'lie 1� - I i th(.-
f�)F ,going par-agraph is true rind iccl.
�V,TNESS n',,y hand ind
Ji
1,h't/ Iblic Signeaun,
SAM LOBOS
COMM. # 2395554 m
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NOTAW PUBLIC , CALIFORNIA n
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LOS ANGELES COUNTY
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