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Contract - JIMNI - 2006-04-20 jo } AGREEMENT FOR SEWER PUMP STATION MAINTENANCE AND REPAIR This Agreement is made and entered into this ,2 day of ' iL4-• 2006 BY and BETWEEN COSTA MESA SANITARY DISTRICT (hereinafter referred to as `District"), a California sanitary district established pursuant to Health and Safety Code sections 6400 et seq and JIMNI SYSTEMS, INC. (hereinafter referred to as `Contractor'), a California corporation, with reference to the following facts: RECITALS WHEREAS, District provides sewer service to its patrons pursuant to a system of sewer lines owned and operated by District and must take reasonable steps to prevent and abate sewer system overflows, including providing sewer pump maintenance and service and further providing emergency repairs when a pump station malfunctions thereby causing such a sewer overflow' and WHEREAS, the District previously had contracted with the City of Costa Mesa to provide certain services related to sewer system overflows and pump station maintenance: and WHEREAS, the District has now separated from City and has terminated its service agreement with City for said services, and WHEREAS, the District has knowledge of Contractor's expertise in providing emergency pump station repair services, and WHEREAS, District and Contractor do now desire to contract for regular pump station maintenance and emergency response and repair and WHEREAS, Contractor has represented that it is competent to provide such services; and 1 • • WHEREAS, District desires an agreement in which the Parties may share certain equipment and facilities and in which personnel of District and Contractor may work together in providing services relating to pump station maintenance, service and repair. and WHEREAS, the Parties acknowledge that District may later employ its own employees to provide these services and may therefore, only need Contractor to provide these services on an interim basis; NOW THEREFORE, the Parties hereto agree as follows. 1. Scope of services. Contractor shall provide the following regular and emergency services: (a) Regular services. Contractor shall provide the following regular pump station maintenance services: (i) Contractor shall provide regular and specialized pumping station maintenance with trained and knowledgeable staff on a schedule determined by the District. Contractor shall be familiar with and thoroughly understand the components, equipment, and operation of all 20 District sewer-pumping stations. (ii) Contractor shall perform daily quarterly semiannual, and annual pump station service based on a checklist of items for each interval as prepared by the District Maintenance Supervisor (b) Emergency services. Contractor shall provide the following emergency services: (i) Contractor shall provide after-hours emergency services defined as being required between the hours of 5pm to lam, Monday through Friday and weekends as the primary responder for pumping station alarms or as secondary responder if so designated by District. Contractor shall respond immediately to all after hours service calls and shall endeavor to be on-site within two (2) hours. 2 • • Contractor shall understand and be able to transport, operate, and use the District's two standby diesel generators and the District's two by-pass pumps and similar or replacement equipment. (ii) Contractor shall immediately respond to normal duty hour emergencies defined as occurring between lam and 5pm Monday through Friday when notified of an alarm. 2. Contractor training. Contractor agrees as follows: (a) Contractor's staff shall be trained and certified in California and Federal OSHA practices for entry and work in and around `permit required confined spaces. (b) Contractor understands the majority of District pumps are manufactured by Flygt Corporation and Contractor shall endeavor to obtain certification through Flygt training courses. (c) Contractor shall be knowledgeable and trained in pump maintenance and shall perform specialized service as requested by the District's Maintenance Supervisor 3. Contractor compensation. Contractor shall be compensated at the rates provided in Exhibit A, which shall remain in effect for one (1) year Contractor shall provide invoices on no more frequently than a monthly basis showing services provided, dates and times of service and persons providing those services and parts provided. Invoices shall provide such itemization and detail as the Manager/District Engineer shall reasonably require. 4. Equipment/personnel sharing. This Agreement provides for a unique sharing arrangement of both personnel and equipment. Contractor shall work in a cooperative manner with District Maintenance Supervisor and other District personnel with the goal of increasing the reliability and operating efficiency of the District pumping stations. Contractor and District shall share Contractor and District-owned tools, equipment, and vehicles as necessary to perform services. Tools, equipment and vehicles purchased and owned by the respective organizations shall remain the property of the purchasing organization. 3 • • 5. Employee/personnel list. Contractor shall provide the District with an updated manpower list with names, addresses, and phone numbers of its staff dedicated to District work including copies of certifications and licenses obtained by the personnel. 6. Recommendations for improvements. Contractor's staff shall meet with District's Manager/District Engineer and/or Assistant Manager as requested by District to discuss recommendations for improvements, advancements and new technology schedule revisions, and other topics that may increase the operating efficiency and reliability of the District's pumping stations. 7 Prevailing wages. District has determined that prevailing wages may apply and Contractor has agreed to comply with said laws. Contractor shall fully indemnify District if Contractor fails to comply with said laws and will pay any wages and penalties assessed for failure to comply 8. Licenses. Contractor has the following licenses: C-42 (Sanitation System Contractor). Contractor agrees it will possess all licenses required by law to perform the duties specified in this contract. 9 Insurance. Contractor has the coverages attached hereto as Exhibit 'B' and will maintain those coverages during the term of this Agreement. Contractor will provide District with an endorsement naming District as an additional insured on its commercial general liability policy 10. Indemnification. The parties agree that due to the unique personnel and equipment sharing arrangements provided for in this Agreement, the parties will each agree to indemnify defend and hold each other harmless from any and all liability that arises from their intentional or negligent acts. 4 • • 11. Work quality Contractor agrees to perform all work in a competent and workmanlike manner Any emergency conditions that may exist shall be taken into consideration in determining if such work was performed in a workmanlike manner All work shall be guaranteed for a minimum of one (1) year 12. Safety Contractor shall observe all safety procedures when performing said job, including but not limited to those set forth in Labor Code Section 6705 pertaining to trenching, those provided by CAL-OSHA and those set forth in the most recent editions of CAL TRANS manuals pertaining to traffic control and the use of warning devices for highway work. Such standards shall include the following: 1 The Work Area Traffic Control Handbook (WATCH). 2. The Manual of Warning Signs, Lights and Devices for Use in Performance of Work Upon Highways. 3 State Labor Code Sections 6704 6706 and 6707 4 The Construction Safety Orders (CAL-OSHA). 5 The General Industry Safety Orders (CAL-OSHA). 6. Standard Specifications for Public Works Construction (The Green Book). 13. Tenn. Due to District's unique need for such services on at least a temporary basis but possibly for an extended interim basis until District determines the permanent pump station response plan that it will implement, this contract may be terminated without cause by the giving of ninety (90) days notice. If either party has cause, it may terminate this contract upon the giving of thirty (30) days notice, provided it has given notice of the grounds for termination to the other party and at least ten (10) days to cure any defects in performance. 14. Ownership of documents. (a) Contractor shall maintain complete and accurate records with respect to the performance of its services under this Agreement and other such information required by District that relate to the performance of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting 5 • • principles and shall he clearly identified and readily accessible. Contractor shall provide free access to the representatives of District or its designees at reasonable times to such books and records; shall give District the right to examine and audit said books and records; shall permit District to make transcripts therefrom as necessary and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. (b) Upon completion, termination or suspension of this Agreement, all records relating to pump maintenance, repairs and warranties, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the District and may be used, reused or otherwise disposed of by the District without the permission of the Contractor With respect to computer files, Contractor shall make available to the District, at the Contractor's office and upon reasonable written request by the District, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 15. Independent consultant. (a) Contractor is and shall at all times remain, as to the District, a wholly independent Contractor The personnel performing the services under this Agreement on behalf of Contractor shall at all times be under Contractor s exclusive direction and control. Neither District nor any of its officers, employees, or agents shall have control over the conduct of Contractor or any of Contractor s officers, employees, or agents, except as set forth in this Agreement. Contractor shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the District. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatever against District, or bind District in any manner (b) 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 6 • • performing services hereunder for District. District shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder 16. Legal responsibilities. The Contractor shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply with all such laws and regulations. The District, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Contractor to comply with this Section. 17 Undue influence. Contractor declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the Costa Mesa Sanitary District in connection with the award, terms or implementation of this Agreement, including any method of coercion confidential financial arrangement or financial inducement. No officer or employee of the Costa Mesa Sanitary District will receive compensation, directly or indirectly from Contractor, or from any officer, employee or agent of Contractor in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the District to any and all remedies at law or in equity 18. No benefit to arise to local employees. No member officer or employee of District, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Project during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Project performed under this Agreement. 7 • • 19 Release of information/Conflicts of interest. (a) All information gained by Contractor in performance of this Agreement shall he considered confidential and shall not be released by Contractor without District's prior written authorization. Contractor its officers, employees, agents or subconsultants, shall not without written authorization from the District Manager or unless requested by the District Counsel, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the District. Response to a subpoena or court order shall not be considered 'voluntary' provided Contractor gives District notice of such court order or subpoena. (b) Contractor shall promptly notify District should Contractor its officers, employees, agents or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, requests for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the District. District retains the right, but has no obligation, to represent Contractor and/or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with District and to provide the opportunity to review any response to discovery requests provided by Contractor However, District's right to review any such response does not imply or mean the right by District to control, direct or rewrite said response. 20. Notices. Any notice which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (0 personal service, (ii) delivery by a reputable document delivery service, such as, but not limited to, Federal Express, which provides a receipt showing date and time of delivery or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice: 8 • • To District. Costa Mesa Sanitary District 628 West 19th Street Costa Mesa, California 92627 Attn: District Clerk To Contractor JIMNI Systems, Inc. 25295 Cinnamon Road Lake Forest, California 92630 21. Assignment. The Contractor shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder without prior written consent of the District. Contractor shall provide District fourteen (14) days notice prior to the departure of Jim Pleasants from Contractor's employ Should he/she leave Contractor's employ the District shall have the option to immediately terminate this Agreement, within three (3) days of the close of said notice period. Upon termination of this agreement, Contractor's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the Board of Directors and the Contractor 22. Governing Law The District and the Contractor understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior or federal district court with jurisdiction over the Costa Mesa Sanitary District. 23. Entire agreement. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 9 • • 24. Authority to execute this agreement. The person or persons executing this Agreement on behalf of Contractor warrants and represents that he/she has the authority to execute this Agreement on behalf of the Contractor and has the authority to bind Contractor to the performance of its obligations hereunder 25. Interpretation. In the event of conflict or inconsistency between this Agreement and any other document, including any proposal or Exhibit hereto, this Agreement shall control unless a contrary intent is clearly stated. IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed by their officers thereunto duly authorized on the date first written above. JIMNI Systems,Inc. Date: 411A--2 G 1470 By / _ Its Costa Mesa Sanitary District Date: art e;0, „2041; By '1'/ l ��/YN�/� President By 0-61:L%. 0 Secretary APPROVED AS TO FORM ALAN R. 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