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Agreement - Performance Pipeline Technologies - 2024-06-24 1 PWK 30U 12 10 2024 (Short form: small construction job under $50,000, Prevailing Wages and Turnkey, Bonds) PUBLIC WORKS AGREEMENT CMSD 355 SCP Emergency Water Infiltration Stopping, & Lining This agreement (hereafter “AGREEMENT”) is made and entered into this _24th day of June, 2024, by and between the Costa Mesa Sanitary District, a sanitary district (hereafter “DISTRICT”), and Performance Pipeline Technologies, Inc., a California corporation (hereafter “CONTRACTOR”). (Recitals: Optional) 1. Scope of the Work. CONTRACTOR agrees to furnish to DISTRICT all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately perform the services described in Exhibit “A,” attached hereto and incorporated by reference. The services described in Exhibit “A” shall be referred to as the “PROJECT.” The PROJECT shall be subject to, and performed in accordance with, this AGREEMENT, the attached exhibits, and all applicable local, state, and federal laws, rules, and regulations. CONTRACTOR shall provide the services described herein in a competent and skillful manner and in “turnkey” form. DISTRICT reserves the right to test the work before accepting. CONTRACTOR warrants that the work shall be fit for its intended purposes. 2. The Contract Sum. DISTRICT agrees to pay and CONTRACTOR agrees to accept in full payment for all work agreed to herein the sum of: Thirty Two Thousand, Nine Hundred and Seventy Five Dollars ($32,975.00). 3. Time of Performance and Liquidated Damages. Time is of the essence of this AGREEMENT. The work shall commence within five (5) days of DISTRICT issuing a “Notice to Proceed” and shall be completed within thirty (30) working days thereafter. CONTRACTOR shall forfeit as liquidated damages the amount of Five Hundred Dollars ($500.00) per calendar day to compensate DISTRICT for the loss of use of the public facility. The parties agree that liquidated damages only measure the damage to the public caused by loss of use or untimely completion of a public facility and that actual damages may also be recovered in addition to liquidated damages. DISTRICT may deduct liquidated damages and actual damages from payments owed to CONTRACTOR. DocuSign Envelope ID: C21FDFEA-F301-4589-909F-15CC121C103B 2 PWK 30U 12 10 2024 4. Extra Work and Change Orders. At any time during the term of this AGREEMENT, DISTRICT may request that CONTRACTOR perform EXTRA WORK. “EXTRA WORK” means any work that is necessary for the proper completion of the PROJECT but which the parties did not reasonably anticipate would be necessary at the time of execution of this AGREEMENT or work outside of this AGREEMENT that is requested by DISTRICT. CONTRACTOR shall not perform, nor be compensated for, EXTRA WORK without a written change order that is authorized and signed by DISTRICT. The written change order requirement cannot be waived. If CONTRACTOR encounters conditions that require EXTRA WORK, CONTRACTOR must notify DISTRICT in writing in a written change order request within fifteen (15) days of encountering said conditions. The failure to submit a written change order request shall constitute a waiver of CONTRACTOR’s claim for additional time or compensation for EXTRA WORK. The written change order requirement cannot be waived. The following formula shall be used to measure CONTRACTOR’s damages or EXTRA WORK. CONTRACTOR shall be limited to the following: Direct costs Mark-up Labor 20% Materials 15% Equipment Rental 15% Other Items 15% Subcontracted work 10% (first $5000) Subcontracted work 5% (work in excess of first $5000) Specialty Subcontracting 5% (Provided at least three (required by EXTRA WORK) competitive bids are obtained and contractor selected the lowest bidder) Excluded from recovery shall be “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 CONTRACTOR’s recovery for damages or EXTRA WORK is limited as provided in this paragraph. CONTRACTOR’s Initials________ 5. Contractor’s Performance and Qualifications. CONTRACTOR shall perform all services required under this AGREEMENT in a skillful and competent manner, consistent with the standards generally recognized as being employed by persons and professionals in the same discipline in the State of California. CONTRACTOR represents DocuSign Envelope ID: C21FDFEA-F301-4589-909F-15CC121C103B 3 PWK 30U 12 10 2024 and maintains that it is skilled in the calling necessary to perform the PROJECT. CONTRACTOR warrants that all employees and subcontractors have sufficient skill and experience to perform the services assigned to them. CONTRACTOR represents that it, its employees, and subcontractors have all of the licenses, permits, qualifications, and approvals that are legally required to perform the PROJECT, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this AGREEMENT. CONTRACTOR agrees that CONTRACTOR has the contractor’s license required to do this job, and any other contractor’s license requested by DISTRICT, and that CONTRACTOR’s License No is: 465501. 6. Prevailing Wages. This is a Public Work. (Labor Code § 1781.) This job, if over One Thousand Dollars ($1,000.00) in value and not exempt, requires compliance with the prevailing wage law. (Labor Code §§ 1720 et seq.) As such, DISTRICT will ascertain the prevailing wages to be paid on this job from the Director of Industrial Relations. Said amounts are listed at http://www.dir.ca.gov/dlsr/pwd/index.htm. CONTRACTOR understands that CONTRACTOR is required to pay prevailing wages, unless exempt, and is required to maintain prevailing wage records and comply with statutory requirements relating to certified copies of payroll records. (Labor Code § 1776.) CONTRACTOR shall defend, indemnify, and hold DISTRICT, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the prevailing wage laws. CONTRACTOR recognizes that state law makes eight (8) hours a legal day’s work, and any worker working in excess of that time must be paid overtime. (Labor Code § 1810.) Statutory provisions for penalties for failure to comply with wage and hour laws will be enforced. (Labor Code §§ 1775, 1813.) CONTRACTOR must comply with statutory requirements relating to the employment of apprentices. (Labor Code § 1777.5.) 7. Workers’ Compensation. CONTRACTOR must secure the payment of workers’ compensation to its employees. (Labor Code § 1860; Civil Code § 3400.) By signing this AGREEMENT, CONTRACTOR acknowledges the following: I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract. 8. Progress Payments. Progress payments may be authorized if this job will take in excess of thirty (30) days. DISTRICT agrees to promptly make progress payments 825824 DocuSign Envelope ID: C21FDFEA-F301-4589-909F-15CC121C103B 4 PWK 30U 12 10 2024 on undisputed and properly submitted payment requests within thirty (30) calendar days and to comply with the provisions of Public Contract Code Section 20104.50. If this AGREEMENT is for at least Five Thousand Dollars ($5,000.00) and progress payments are made, DISTRICT will retain five percent (5%) of the total contract amount until sixty (60) days after the notice of completion is filed. (Public Contract Code §§ 7107, 9203.) CONTRACTOR may substitute securities in lieu of retention pursuant to Public Contracts Code Section 22300. 9. Insurance. A. Time for Compliance. CONTRACTOR shall not commence work under this AGREEMENT until it has provided evidence satisfactory to DISTRICT that it has secured all insurance required under this Section. In addition, CONTRACTOR shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to DISTRICT that the subcontractor has secured all insurance required under this Section. B. Minimum Requirements. CONTRACTOR shall, at its expense, procure and maintain for the duration of the AGREEMENT insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the AGREEMENT by CONTRACTOR, its agents, representatives, employees, or subcontractors. CONTRACTOR shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the AGREEMENT. Such insurance shall meet at least the following minimum levels of coverage: i. Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. ii. Minimum Limits of Insurance. CONTRACTOR shall maintain limits no less than: (1) General Liability: One Million Dollars ($1,000,000.00) per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this AGREEMENT/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. DocuSign Envelope ID: C21FDFEA-F301-4589-909F-15CC121C103B 5 PWK 30U 12 10 2024 C. Insurance Endorsements. The insurance policies shall contain the following provisions, and a separate endorsement stating to add the following provisions to the insurance policies shall be submitted and approved by DISTRICT: i. General Liability. The general liability policy shall be endorsed to state that: (1) DISTRICT, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the work or operations performed by or on behalf of CONTRACTOR, including materials, parts, or equipment furnished in connection with such work; and (2) the insurance coverage shall be primary insurance as respects DISTRICT, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of CONTRACTOR’s scheduled underlying coverage. Any insurance or self-insurance maintained by DISTRICT, its directors, officials, officers, employees, agents, and volunteers shall be excess of CONTRACTOR’s insurance and shall not be called upon to contribute with it in any way. ii. Automobile Liability. The automobile liability policy shall be endorsed to state that: (1) DISTRICT, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading, or unloading of any auto owned, leased, hired, or borrowed by CONTRACTOR or for which CONTRACTOR is responsible; and (2) the insurance coverage shall be primary insurance as respects DISTRICT, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of CONTRACTOR’s scheduled underlying coverage. Any insurance or self-insurance maintained by DISTRICT, its directors, officials, officers, employees, agents, and volunteers shall be excess of CONTRACTOR’s insurance and shall not be called upon to contribute with it in any way. iii. Workers’ Compensation and Employer’s Liability Coverage. The insurer shall agree to waive all rights of subrogation against DISTRICT, its directors, officials, officers, employees, agents, and volunteers for losses paid under the terms of the insurance policy which arise from work performed by CONTRACTOR. iv. All Coverages. Each insurance policy required by this AGREEMENT shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced, or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to DISTRICT; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to DISTRICT, its directors, officials, officers, employees, agents, and volunteers. D. Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to DISTRICT, its directors, officials, officers, employees, agents, and volunteers. DocuSign Envelope ID: C21FDFEA-F301-4589-909F-15CC121C103B 6 PWK 30U 12 10 2024 E. Deductibles and Self-Insured Retentions. Any deductibles or self- insured retentions must be declared to and approved by DISTRICT. CONTRACTOR shall guarantee that, at the option of DISTRICT, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects DISTRICT, its directors, officials, officers, employees, agents, and volunteers, or (2) CONTRACTOR shall procure a bond guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses. F. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VIII, licensed to do business in California, and satisfactory to DISTRICT. G. Verification of Coverage. CONTRACTOR shall furnish DISTRICT with original certificates of insurance and endorsements effecting coverage required by this AGREEMENT on forms satisfactory to DISTRICT. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf and shall be on forms provided by DISTRICT if requested. All certificates and endorsements must be received and approved by DISTRICT before work commences. DISTRICT reserves the right to require complete, certified copies of all required insurance policies, at any time. 10. Indemnification. CONTRACTOR shall defend, indemnify, and hold the DISTRICT, its officials, officers, employees, and agents free and harmless from any and all claims, demands, causes of action, expenses, liabilities, losses, damages, and injuries to property or persons, including wrongful death, where the same arise out of, pertain to, relate to, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this AGREEMENT by CONTRACTOR or by any individual or entity for which CONTRACTOR is legally liable, including, but not limited to, officers, agents, employees, or subcontractors of CONTRACTOR, save and except that caused by DISTRICT’s sole or active negligence or willful misconduct. 11. Warranty. CONTRACTOR shall perform, at its own cost and expense and without reimbursement from DISTRICT, any services necessary to correct errors or omissions which are caused by CONTRACTOR’s failure to comply with the standard of care provided for herein. CONTRACTOR shall guarantee work done on the PROJECT for a one-year (1) period commencing on the date of substantial completion. CONTRACTOR shall warrant that all services provided and equipment installed shall perform in a workmanlike manner and be fit for its particular purpose. 12. Termination. DISTRICT reserves the right to terminate this AGREEMENT at any time, with or without cause. CONTRACTOR will be entitled to payment for work performed up until receipt of the notice of termination unless CONTRACTOR was in default in CONTRACTOR’s performance. DocuSign Envelope ID: C21FDFEA-F301-4589-909F-15CC121C103B 7 PWK 30U 12 10 2024 Any employee of CONTRACTOR or its subcontractors who is determined by DISTRICT to be uncooperative, incompetent, a threat to the adequate or timely completion of the PROJECT, or a threat to the safety of persons or property, or any employee who fails or refuses to perform PROJECT in a manner acceptable to DISTRICT, shall be promptly removed from the PROJECT by the CONTRACTOR and shall not be re-employed to perform any of the PROJECT. 13. Miscellaneous. DISTRICT acknowledges that if it provides CONTRACTOR with locations of underground pipelines and DISTRICT is incorrect and those utilities must be relocated, DISTRICT will pay for those relocation costs in accordance with statutory requirements. (Government Code § 4215.) CONTRACTOR shall comply with Government Code Section 2016 and contact the Regional Notification Center and delineate areas to be excavated and will seek authorization to excavate. CONTRACTOR agrees to provide DISTRICT with notice of any hazardous materials or subsurface or latent physical site conditions if encountered if this work involves excavations deeper than four feet (4’). If this work exceeds Twenty-Five Thousand Dollars ($25,000.00) and the excavations exceed five feet (5’), CONTRACTOR must provide a detailed trenching plan. (Public Contracts Code § 7104; Labor Code § 6705.) CONTRACTOR shall provide the DISTRICT with a copy of each Safety Data Sheet (SDS) for those chemical substances that may be used on DISTRICT property and/or may pose a hazard to DISTRICT employees. DISTRICT shall give CONTRACTOR timely notice of third-party claims. For claims that are less than Three Hundred Seventy-Five Thousand Dollars ($375,000.00), the provisions of Public Contracts Code Sections 20104 et seq. (Article 1.5 – Resolution of Construction Claims) shall be followed. The parties agree to comply with Public Contract Code Section 9204, if applicable, and agree to utilize that procedure to resolve claims. CONTRACTOR is and shall at all times remain as to DISTRICT an independent contractor. No employee benefits shall be available to CONTRACTOR in connection with the performance of this AGREEMENT. Except for the fees paid to CONTRACTOR as provided in this AGREEMENT, DISTRICT shall not pay salaries, wages, or other compensation to CONTRACTOR for performing any services hereunder for DISTRICT. DISTRICT shall not be liable for compensation or indemnification to CONTRACTOR for injury or sickness arising out of performing any services hereunder. This AGREEMENT shall be interpreted in accordance with the laws of the State of California. Any action brought between the parties shall be commenced in the superior or federal district court with jurisdiction over the DISTRICT. DocuSign Envelope ID: C21FDFEA-F301-4589-909F-15CC121C103B 8 PWK 30U 12 10 2024 This AGREEMENT and the attachments hereto shall contain the entire agreement between the parties. This AGREEMENT cannot be modified except in a writing signed by both parties. In the event of inconsistency between this AGREEMENT and any attachment hereto, this AGREEMENT shall control in all respects. This AGREEMENT cannot be assigned without the prior written consent of the District. Each person signing this AGREEMENT warrants that they have the authority to sign and bind the party. CONTRACTOR shall provide DISTRICT with drawings of the construction in its "as built" condition. COSTA MESA SANITARY DISTRICT CONTRACTOR Approved by: Reviewed and Accepted by: ________________________________ ________________________________ General Manager Name Signature: _______________________ Title: ___________________________ Approved as to Form: ________________________________ Harper & Burns LLP District Counsel Brittany Spielberger Controller DocuSign Envelope ID: C21FDFEA-F301-4589-909F-15CC121C103B