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October 13, 2010
Board of Directors
Arlene Schuler Mike Kilhride, Ltd.
Robert oaten Attention. Dennis Ruiz
Garr Manahan P O Box 3341
Arthur Perry Newport Beach, CA 92659-8341
James Forman
Re: Letter Agreement for Public Works Project 549 Bernard St,Costa Mesa
Staff Dear Dennis:
Scott C. Carroll
General Manager
By signing this letter agreement you agree to perform the following work for the
Costa Mesa Sanitary District: sewer repairs near 549 Bernard St. Costa Mesa, CA
Robin B. flamers
District Engineer Compensation for the above services shall not exceed unless expressly agreed in
(949) 631 1731 writing in advance by the District, $5,500.00 The above services shall be
completed within 5 working days after receiving a 'Notice to Proceed' from the
Joan Revak District.
(Vice Manager
Clerk of the District you agree that you have the license required to do this job or as requested by the
District and that License No is the following: A and `C 10' 738400
A tun R. Burns
Legal Counsel You understand that this job, if over $1,000 in value and not exempt, requires
compliance with the prevailing wage law (Labor Code § 1720 et. seq. and
Marcus D.Davis California Code of Regulations, Title 8, Section 1600 et seq.) As such, the
Treasurer District will ascertain the prevailing wages to be paid on this job from the
Director of Industrial Relations. You understand that you are required to pay
prevailing wages and are required to maintain prevailing wage records regarding
those payments. You are also required to comply with the apprentice
Phone requirements. The District will enforce state penalties of$50 per day for failure
(949) r,45-8401 to pay any worker in accordance with the prevailing wage law
Fax
(9491 650-2253
Contractor recognizes that state law makes eight hours a day's work and any
worker working in excess of that time must be paid overtime. (Labor Code §
1813)
Address
628W 19thStreet You must have workers compensation insurance and by signing this contract you
Costa Mesa. C4 acknowledge this requirement in accordance with Labor Code § 1861 You will
92627 2716 provide a certificate of insurance evidencing this coverage.
If this contract is for over $25.000, you must post a labor and materials bond on
District s form. (Civil Code §§ 3247 3248)
Is
to p, ,nd Protecting ow corffmtofity's Gbeafk&and the ereairimment by providing so(idwaste and sewer collection serr ims.
Recycled Pape www.crosbca.gov
Mike Kilbride, Ltd.
549 Bernard Street Sewer Improvements
Page 2 of 3
The District acknowledges that if it provides you with locations of underground
pipelines, and we are incorrect and those utilities must be relocated, the District will pay
for those relocation costs in accordance with statutory requirements. (Government Code
§ 4215)
You agree to provide the District with notice of any hazardous materials, subsurface or
latent physical site conditions if encountered if this work involves excavations deeper
than 4 feet. If this work exceeds $25,000 and the excavations exceed 5 feet, you must
provide a detailed trenching plan. (Penal Code § 7104 Labor Code § 6705)
If this contract is for at least $5,000 and progress payments are made, District is required
to retain 5% of the contract until 60 days after notice of completion is filed. (Public
Contract Code §9203, §7107) Progress payments may be authorized if this job will take
in excess of 30 days.
If you bid for this job and were required to submit a subcontractor's list, you may only
substitute one of those bidders by complying with that Act. (See Public Contract Code §
4100 et. seq.)
Contractor shall be required to maintain insurance policies as provided in Exhibit A
Contractor shall indemnify defend and hold the District harmless from any and all claims
or litigation or loss arising out of the work performed pursuant to this contract save and
except that caused by District s sole or active negligence.
If you submitted a bid, you declare by signing this contract that you did not collude to
obtain this job (Public Contract Code §7106)
You agree that all work will be performed in a workmanlike manner and guarantee such
work for a one year period.
No work shall be performed until all insurance and bonds are on file and this letter
agreement has been properly executed. No work shall be performed until a 'Notice to
Proceed' is given by District.
District reserves the right to terminate this contract upon giving you 10 days notice. You
will be entitled to payment for work performed up until the notice of termination unless
you were in default in your performance.
If you agree with the above, please sign below
Mike Kilbride Ltd
549 Bernard Street Improvements
Page 3 of 3
DISTRICT CONTRACTOR
Approved by: Reviewed and Accepted by:
General Manager Signatur •
Name
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Approved to Form: Title
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Harper& Burns LLP
District Counsel /1/451/0
Date
EXHIBIT A
INSURANCE REQUIREMENT
Contractor shall provide proof of insurance of at least One Million Dollars ($1,000,000.00)
for commercial general liability with underground coverage, and any automotive
coverage.
The commercial general liability coverage shall name the District and its officers, agents
and employees as additional insureds and District reserve the right to require an
endorsement naming District as an additional insured.
Such coverage must provide that it is not to be cancelled except upon thirty (30) days
notice to District. District also reserves the right to require that the insurance company
providing the commercial general liability policy has a Best Key Guide rating of at least A-
VII and is an admitted carrier in the State of California.