Resolution No. 8911
, ~
If' .
1
2
3
4
5
6
RESOLUTION NO. 8911
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
SERVICES AGREEMENT BY AND BETWEEN THE CITY OF
VERNON AND TECHNO COATINGS REGARDING THE MALBURG
GENERATING STATION FACILITY AND STATION A
7 WHEREAS, the City of Vernon ("City") has completed the
8 start-up, construction and commissioning phases of the Malburg
9 Generating Station ("MGS") that was built for the purpose of
10 installing additional generating capacity that will yield an
11 efficient, cost-effective, and reliable source of electric generation
12 to the City's inhabitants; and
13 WHEREAS, the Director of Light & Power has determined that
14 the City needs to paint the MGS facility and Station A; and
15 WHEREAS, the Director of Light & Power has determined that
.16 Techno Coatings, Inc. ("Techno") possesses the technical knowledge and
17 expertise to furnish the painting services required by the City and
18 recommends that an agreement for the painting services with Techno in
19 the sum of $630,452.00 be approved and executed; and
20 WHEREAS, the City Council of the City of Vernon has
21 determined that, pursuant to the provisions of subsection (a) of
22 Section 2.27 of the Vernon City Code, it is in the public interest and
23 necessity to enter into a contract with Techno.
24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
25 CITY OF VERNON AS FOLLOWS:
26
SECTION 1:
The City Council of the City of Vernon hereby
27 finds and determines that the recitals contained hereinabove are true
28 and correct.
23
24
25
26
27
28
, If):
1
SECTION 2:
The City Council of the City of Veroonhereby
2 approves the Services Agreement with Techno, in substantially the .....
3 form as the copy which is attached hereto as Exhibit A and
4 incorporated, by reference.
5
SECTION 3:
The City Council of the City of Vernon hereby
6 authorizes the Mayor to execute said Agreement for, and on behalf of,
7 the City of Vernon and the Acting City Clerk is hereby authorized to
8 attest thereto.
9
SECTION 4:
The City Council of the City of Vernon hereby
10 authorizes the Acting City Clerk, or his designee, to make whatever
11 nonsubstantive, administrative and/or text changes, upon advice of
12 counsel, to the Agreement.
13
SECTION 5:
The City Council of the City of Vernon hereby
14
directs the Acting City Clerk, or his designee, to send one fully
executed Agreement to:
15
16
17
18
19
Techno Coatings, Inc.
Attn. Michael T. Birney
1391 Allee Street
Anaheim, CA 92805
SECTION 6:
The Acting City Clerk of the City of Vernon
20 shall certify to the passage of this resolution, and thereupon and
21 thereafter the same shall be in full force and effect.
22 APPROVED AND ADOPTED this 16th day of November, 2005.
ATTEST:?
/2r----
BRUCE V. MALKENHORST, JR.
Acting City Clerk
~ ~ ~
~-:j:2>~ . ~t/{t-.... ,
-- ~EONIS C. M BURG7MaYOr
..;. 2 -
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
J , , I
1 STATE OF CALIFORNIA
ss
COUNTY OF LOS ANGELES
I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 8911, was duly adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Wednesday, November 16, 2005, and thereafter was duly signed by the
Mayor of the City of Vernon.
~
BRUCE V. MALKENHORST, JR.
Acting City Clerk
(SEAL)
- 3 -
EXHIBIT
A
\Q)[Ri~[F1r
SERVICES AGREEMENT
This AGREEMENT ("Agreement") is made, entered into and executed in
duplicate originals, either copy of which may be considered and used as the original
hereof for all purposes, as of this 16th day of November, 2005, in the City of Vernon,
County of Los Angeles, . California
BY AND BETWEEN
CITY OF VERNON, a municipal
corporation, hereinafter referred to as
the "City"
4305 Santa Fe Avenue
Vernon, California 90058
AND
TECHNO COATINGS, INC., an
independent contractor, hereinafter
referred to as the "Contractor"
1391 Allec Street
Anaheim, CA 92805
RECITALS
WHEREAS, the City has constructed the Malburg Generating Station
("MGS") Combined Cycle Power Plant at 2715 E. 50th Street in the City of Vernon for
purposes of installing additional generating capacity; and
WHEREAS, the City has determined that it is in the best interest of the
City to retain the services of an independent contractor to paint the MGS facility and
Station A (collectively, the "Services"); and
WHEREAS, Contractor has prepared a Scope of Work, a letter dated
November 7, 2005 and e-mails dated November 1, 2005 and November 2, 2005,
describing the Services to be performed at the MGS facility and Station A (System 2),
copies of which are attached hereto as Exhibit A and incorporated by this reference
(collectively, the "Proposal"); and
WHEREAS, Contractor represents that it is qualified and capable of
furnishing the labor, materials, tools, equipment and expertise necessary to perform the
Services that the City requires, as set forth in this Agreement, and is willing to do so on
the terms and conditions set forth below; and
WHEREAS, the Services have been bid, and Contractor's cost proposal is
acceptable to the City; and
WHEREAS, the City desires to enter into an agreement with Contractor to
provide the Services on a contract basis as defined in the terms and conditions set forth
1
below.
NOW, THEREFORE, IT IS AGREED AS FOllOWS:
SECTION 1. TERM OF CONTRACT
1.01. This Agreement will become effective upon the full execution of this Agreement,
and will continue in effect until such time as the Contractor has completed the
work according to the Proposal, or until terminated or extended as provided in
this Agreement.
SECTION 2. DEFINITION OF TERMS
2.01. Whenever used in the Agreement, the following terms shall mean:
A. "Agreement" shall mean that formally executed Agreement or Contract
which includes the Contract Documents attached. The Agreement
constitutes the entire agreement between the parties relating to its subject
matter.
B. "City" shall mean the City of Vernon, California, the entity which has
executed the Agreement and, where applicable, its affiliated companies,
and its officers, directors, employees, representatives and agents.
C. "Contractor" shall mean Techno Coatings, Inc. and where applicable, its
affiliated companies, and its officers, directors, employees,
representatives and agents.
D. "Contract Documents" shall include any inquiry, invitation to bid, or
proposal which may have, but not necessarily, preceded execution of the
Agreement, and including the General Provisions and all exhibits and
schedules attached to the Agreement and all plans and specifications
identified in the Contract Documents.
E. "Contract Price" shall mean the compensation set forth or provided for in
Section 4.01 of this Agreement. Whether it expressly provides for the
reimbursement of costs incurred by Contractor or simply for the payment
of a lump sum of money, it is intended to be the full and complete payment
for satisfactory completion of the Work and, unless otherwise stated, to
cover all costs whether for materials, equipment, tools, labor, services and
taxes and all overhead, rentals and profit or fee, if any.
F. "General Provisions" or "General Conditions" shall mean the General
Provisions as set forth in this Agreement.
2
G. "Premises" shall mean the physical premises under City's control or
ownership where Work hereunder is to be performed.
H. "Proprietary Information" and "Confidential Information" shall mean all
information, whether written or oral, which Contractor acquires from,
through or on behalf of City, directly or indirectly, or which arises out of the
Work, concerning the Work or proprietary processes involved in the Work
including, without limitation, information concerning past, present or future
business plans of City, information about the operations of City's
Premises, and other City information or know-how obtained during the
Work, except information falling into any of the following categories:
1. Information which, at the time of disclosure hereunder, is in the
public domain;
2. Information which, after disclosure hereunder, enters the public
domain, except where such entry is the result of Contractor's or any
entity within Contractor's control breach of this Agreement;
3. Information which, prior to disclosure hereunder, was already in
Contractor's possession without limitation regarding disclosure to
others; or
4. Information which, subsequent to disclosure hereunder, is obtained
by Contractor from a third party who is lawfully in possession of
such information and not subject to a contractual or fiduciary
relationship to City with respect to said information and who does
not require Contractor to agree to refrain from disclosing such
information to others.
I. "Subcontractor" shall mean any first or lower-tier subcontractor and its
employees, representatives, agents, subcontractors or other personnel
who have been approved in the manner required by this Agreement.
J. "Work" or "Services" shall mean the work performed by Contractor and
required to be performed from time to time by City under this Agreement.
SECTION 3. SERVICES TO BE PERFORMED BY
CONTRACTOR
Specific Services
3.01. Contractor's Services shall include, but will not be limited to, furnishing the labor,
materials, tools, equipment and expertise necessary to perform the Services.
The Contractor's Services are more specifically detailed in the Proposal attached
3
3.09. Contractor has no authority to enter contracts or agreements on behalf of City.
This Agreement does not create a partnership or joint venture between the
parties.
Payment of Taxes
3.10. Contractor is responsible for paying when due all income taxes, including
estimated taxes, incurred as a result of the compensation paid by City to the
Contractor for Services under this Agreement. Contractor agrees to indemnify
City for any claims, costs, losses, fees, penalties, interest, or damages suffered
by City resulting from Contractor's failure to comply with this provision.
3.11. Payroll taxes including federal, state and local taxes shall not be withheld or paid
by City on behalf of Contractor or for the employees of the Contractor.
Contractor shall not be treated as an employee with respect to the Services
performed hereunder for federal or state tax purposes. Contractor shall be
responsible to pay taxes mandated by law.
3.12. Since Contractor is not an employee of City, Contractor is not eligible for and
shall not participate in any employee benefit of City, including pension, health or
other fringe benefits.
SECTION 4. COMPENSATION
4.01. In consideration for the Services to be performed by Contractor, described in
Section 3 of this Agreement, City agrees to pay Contractor the sum of Six
HundredThirty Thousand Four Hundred Fifty-Two Dollars and no/100
($630,452.00) (the "Contract Price"). In the event additional Work needs to 'be
performed as authorized by the Director of Light & Power, such Work shall be
,performed by Contractor on a time-and-material basis, according to the Time &
Material Rate Sheets set forth in Exhibit A.
Entire Compensation
4.02. The Contract Price is full and complete compensation, and constitutes the entire
compensation due Contractor for the Services and any and all of Contractor's
obligations hereunder, regardless of difficulty, unforeseen circumstances, hours
worked or equipment, materials or personnel required. The Contract Price
includes without limitation compensation for applicable taxes, customs duties,
fees, overhead, profit, travel time to and from the Premises and all other direct
and indirect costs incurred or to be incurred by Contractor hereunder. The
Contract Price set forth above is not subject to escalation for any reason except
as expressly set forth in this Agreement. No adjustments in compensation shall
be made as a result of changes in the value of any currency. The Contract Price
shall only be adjusted by formal, written Change Order or amendment to this
5
Agreement.
Payment of Compensation
4.03. For Services rendered under Section 3 of this Agreement, City agrees to pay
Contractor the sum set forth in Paragraph 4.01 of this Agreement on completion
of Work and within thirty (30) days of acceptance and approval of an invoice
prepared in accordance with City requirements.
4.04. For Services rendered under Section 3 of this Agreement, Contractor shall be
entitled to receive monthly payments. Contractor shall submit to City a monthly
invoice and statement of Services, prepared in accordance with City
requirements, by the fifteenth (15th) of each month, for the prior calendar month's
completed Work. City will make payments to Contractor within thirty (30) days
after acceptance and approval of the invoice received from Contractor.
4.05. Contractor shall be responsible for paying any subcontractors used in the
performance of this Agreement. Subcontractors shall not bill the City directly.
Expenses
4.06. City shall not be liable to Contractor for any expenses paid or incurred by
Contractor. Expenses may only be billed if advance written approval has been
obtained from the City Administrator.
Compensation for Changes
4.07. The compensation due Contractor, or the credit due City, for changes may not be
established verbally, and shall be established in a written change order signed by
City as described in Sections 3.03 and 3.04 of this Agreement. Compensation
adjustments in each such change order shall be established by one or more of
the following bases, as determined by City: (a) a lump sum price to be negotiated
between the parties; or (b) Work unit rates to be negotiated between the parties.
Once established, the amount of the compensation due Contractor or credit due
City for a change shall not be subject to adjustment for any reason, including
changes in the value of any currency.
SECTION 5. OBLIGATIONS OF THE PARTIES
5.01. Contractor is responsible for meeting all conditions of this Agreement and City
Standards & Details for all Work performed. Substandard Work, as determined
solely by the City, shall be redone at the expense of the Contractor.
III
6
Products of Consulting
5.02. All products of consulting services including, but not limited to, manuals,
documents and/or computer software, shall become the property of the City and
shall be delivered to the City before the end of the performance of this
Agreement. Basic notes and sketches, charts, computations and other data shall
be made available to City without restriction or limitation on their use.
Liability Insurance
5.03. Contractor and its subcontractor(s), if any, shall, prior to commencement of any
Work and for the duration of this Agreement, obtain and maintain at its own
expense, those minimum levels of insurance coverage as set forth below. Prior
to commencing Work hereunder, Contractor shall provide the City with proof of
insurance providing and maintaining the coverages and endorsements set forth
below. Said proof of insurance shall also provide that said policy or policies shall
not be canceled or materially reduced in coverage without giving at least thirty
(30) days prior written notice to the City.
5.04. The insurance coverage as listed herein, shall be properly endorsed to include
those contractual obligations which may be identified further within this
Agreement and shall be endorsed to provide City all the rights and privileges of
an additional insured.
5.05. Contractor shall cause its insurers to issue, including but not limited to,
Certificates of Insurance or, upon request, certified copies of the insurance
policies evidencing that the coverages and policy endorsements required under
this Agreement, are maintained in force.
5.06. Contractor shall ensure its subcontractor(s), if any, maintain those insurance
requirements as specified in this Agreement and are endorsed as additional
insured(s) on all required Contractor insurance coverages. Contractor and its
subcontractor(s), if any, shall maintain in effect the following minimum insurance
coverages on an Occurrence Form Policy:
A. Workers Compensation within the statutory limits, including occupational
illness or disease coverage in accordance with the laws of the nation,
state, territory, or province exercising jurisdiction over Contractor's
employees. Workers Compensation and Employers Liability Insurance
shall have a minimum limit of $1,000,000 per occurrence. Contractor
further agrees to hold harmless and indemnify City for any and all claims
arising out of an injury, disability, or death of any of Contractor's
employees or agents.
B. Comprehensive General Liability Insurance, including, but not limited to,
7
Contractual Liability, Products and Completed Operations Liability, 8road
Form Property Damage and Bodily Injury Liability, and Explosion,
Collapse and Underground Liability, with a minimum combined singte limit
of $2,000,000 per occurrence.
C. Comprehensive Automobile Insurance, including, but not limited to, all
owned, non-owned or hired vehicles with a minimum combined single limit
of $1 ,000,000 per occurrence for bodily injury and property damage.
D. Excess Liability Insurance with limits of $2,000,000. Such evidence of
insurance can either be through the primary insurance coverages or
through an excess policy. Such insurance shall at all times be on an
occurrence form and provide policy conditions as broad as those required
in the primary insurance.
5.07. Contractor agrees to provide insurance in the amounts and forms specified
above. Contractor shall submit to the City documentation indicating compliance
with these minimum requirements no less than one (1) day prior to the beginning
of performance under this Agreement. Contractor shall not commence
performance of its Work under this Agreement until the above insurance has
been obtained and proof of insurance has been filed with and approved by the
City.
5.08. Contractor shall not permit a subcontractor or vendor to perform work on City
premises unless and until a certificate of insurance is obtained showing that such
subcontractor or vendor has worker's compensation coverage. If Contractor
employs subcontractors as part of the Services rendered, Contractor's protective
coverage is required. Contractor may include all subcontractors as insureds
under its own policy or shall furnish separate insurance for each subcontractor,
meeting the requirements set forth above.
Representations
5.09. To the fullest extent permitted by law, Contractor shall defend, indemnify and
hold harmless City and its elected officials, officers, agents and employees from
all claims, suits, actions, demands, damages, liabilities, expenses, judgments,
settlements, and penalties, losses, fines, and all costs and expenses incurred in
connection therewith, including reasonable attorney's fees and all costs of
defense, arising out of or attributable to the negligent or wrongful acts of
Contractor or its employees or agents under this Agreement, except to the extent
arising from or caused by the sole negligence or willful misconduct of the City, its
officers, agents or employees. The terms of this indemnity shall survive the
termination of this Agreement. The obligations in this Paragraph are in addition
to Contractor's duty to provide insurance and shall not be limited by any limitation
on the amount or type of insurance coverage carried by Contractor.
8
5.10. Contractor and City represent that each has read and understands the
Agreement and Contract Documents. The Contractor represents it understands
the City's regulations concerning Premises access, badges, parking, security,
safety, fire, prohibited drugs and alcohol, and smoking and other rules, and that
Contractor has visited Premises where the Work is to be done and is familiar with
the local conditions under which it is to be done. Contractor also represents that
it is experienced in performing and competent and qualified to perform the kind of
tasks or assignments included in the Work and employs or has available for
employment in sufficient numbers all unskilled, skilled, administrative,
supervisory, professional and managerial or other personnel required to perform
the Work as required by this Agreement.
5.11. Contractor represents that it has the qualifications and skills necessary to
perform the Services under this Agreement in a competent, professional manner,
without the advice or direction of City. This means Contractor is able to fulfill the
requirements of this Agreement. Failure to perform all the Services required
under this Agreement constitutes a material breach of the Agreement.
Contractor has complete and sole discretion for the manner in which the Work
under this Agreement will be performed.
5.12. Contractor declares and states that is has complied with and will continue to
comply with all federal, state and local laws regarding business permits and
licenses that may be required to carry out the Services to be performed under
this Agreement.
5.13, Contractor agrees to indemnify, defend, and hold City free and harmless from all
claims, demands, losses, costs, expenses, obligations, liabilities, damages,
recoveries and deficiencies, including interest, penalties, attorney's fees and
costs, that City may incur as a result of a breach by Contractor of any
representation or provision contained in this Agreement or any negligent or
intentional acts or omissions by Contractor, it subcontractors, agents, and
employees or based on any claim that any software program or other product
used or furnished by Contractor in the performance of this Agreement constitutes
an infringement of any United States patent or copyright.
5.14. Contractor's rights under this Agreement may not be assigned nor may its duties
be delegated or subcontracted without the prior written consent of City. Any
assignment or delegation or subcontract in violation of this Section shall, at City's
sole discretion, be void. Consent by City shall not relieve Contractor of
responsibility for performance of Contractor's obligations hereunder. City may
assign all or any part of this Agreement at any time effective immediately upon
written notification to Contractor.
5.15.' At all times while Work is being performed on the Premises each party shall be
9
represented thereon by a designated representative. Each party may notify the
other in writing of the identity of such persons from time to time.
Work Injury
5.16. The treatment and care of injuries sustained by Contractor's employees,
subcontractors, representatives or other personnel shall be and remain the
responsibility of Contractor. City's first aid facilities, if any, however, will be made
available to Contractor's employees in emergency cases which are the direct
result of accidents occurring on the Premises. City shall incur no liability for, and
Contractor hereby agrees to indemnify City against, any causes of action, claim,
liability or costs, including attorney's fees, arising in whole or part out of the
furnishing of such first aid facilities or assistance to Contractor's employees,
subcontractors, representatives or other personnel, or out of the failure to furnish
such facilities or assistance.
Records, Inspection and Audit
5.17. During the course of Work being performed, Contractor and any of its
subcontractors, shall maintain and retain, not less than three (3) years after
completion thereof, complete and accurate records of the Contractor's costs
which are chargeable to the City under this Agreement. City or its designated,
authorized representatives, shall have the right during this three (3) year period,
upon written reasonable notice, to inspect and audit those records. Such records
to be maintained and retained by the Contractor shall include: (a) payroll record
accounting for the total time distribution of the Contractor's employees working
full or part time on the Work (to permit tracing to payroll payments in cash); (b)
invoices for purchases, receiving and issuing documents, and all the other unit-
inventory records for the Contractor's stores, stock or capital items; (c) paid
invoices and canceled checks for material purchased and for the subcontractor's
and any other third parties' charges; and (d) any other documentation City deems
necessary to support costs and charges under this Agreement.
Corporate Conduct
5.18. Contractor, its employees, agents or representatives shall not offer or give to an
officer, official or employee of City gifts, entertainment, payments, loans or other
gratuities to influence the award of a contract or obtain favorable treatment under
this Agreement or any other contract.
Standard of Care
5.19. Contractor agrees that all Services provided will be conducted by the principal
and competent staff members, if any, under the supervision of the principal, and
10
that Services will be performed and rendered diligently. Contractor repre.ms
that it has, or shall secure, at its own expense, all personnel required to perform
Contractor's Services under this Agreement, but at all times shall be responsibfe
for the Services of such personnel. Contractor may not employ any
subcontractor without the prior written approval of the City.
Indemnity Process
5.20. The City shall notify Contractor in writing of any suits, claims or demands
covered by any indemnity contained in this Agreement. Promptly after receipt of
such notice, Contractor shall assume the defense of such claim with counsel
reasonably satisfactory to City. If Contractor fails, within a reasonable time after
receipt of such notice, to assume the defense with counsel reasonably
satisfactory to City, or if, in the reasonable judgment of City, a direct or indirect
conflict of interest exists between the parties with respect to the claim, or if in the
sole judgment of City the assumption and conduct of the defense by Contractor
would materially and adversely affect City in any manner or prejudice its ability to
conduct a successful defense, then the City shall have th~ right to undertake the
defense, compromise and settlement of such claim for the account and at the
expense of Contractor. Notwithstanding the above, if the City in its sole
discretion so elects, City may also participate in the defense of such actions by
employing counsel at its expense, without waiving the Contractor's obligations to
indemnify or defend. Contractor shall not settle or compromise any claim or
consent to the entry of any judgment without the prior written consent of the City
and without an unconditional release of all liability by each claimant or plaintiff to
the City.
Treatment of Confidential and Proprietary Information
5.21, For ten (10) years after the effective date of this Agreement, Contractor shall
refrain from using any Confidential or Proprietary Information except in
connection with the Work or from disclosing it to any third party other than to
employees of Contractor who require it in performance of the Work and except to
such other third persons as City may authorize in writing. If disclosure to such an
employee or to other third persons is so authorized, Contractor shall enter into
with said party a confidentiality agreement containing provisions with respect to
use and disclosure of Proprietary Information substantially the same as those
contained in this Agreement.
5.22. Contractor shall take reasonable precautions to safeguard any documents
containing Proprietary Information which City may supply to Contractor
hereunder. Contractor may copy, in whole or part, such documents to the extent
necessary for the performance of the Work, and Contractor shall return to City
upon the completion of the Work or request by City all such documents and
copies.
11
5.23. Except as expressly permitted by prior written consent of the City, Contractor
and/or its subcontractors shall not disclose, permit the disclosure of, release,
disseminate, or transfer, whether orally or by any other means, any part of such
Confidential Information to any other person or entity. Contractor and/or its
subcontractors shall return any written Confidential Information and all copies
made of such items to the City upon the City's written request, but in any event
not later than the date that Contractor has performed all Work to be performed
pursuant to this Agreement. Contractor hereby agrees that such Confidential
Information and any documents provided may be used by Contractor and/or its
subcontractors only as authorized by the City. Contractor shall include a
provision in its agreements with subcontractors that binds the subcontractors to
this non-disclosure requirement.
5.24. All reports, plans, data, studies, maps, drawings, models, photographs,
documents and other writings prepared by and for Contractor, its officers,
employees, agents and subcontractors in the course of implementing this
Agreement, with the exception of working notes, internal documents and
Confidential Information provided by businesses located in City, shall be
considered the property of City. Contractor shall deliver such documents and
materials to the City as they are generated; however, Contractor may take and
retain copies of said documents and materials that are not Confidential
Information, as desired.
5.25. All reports, information, data and exhibits prepared or assembled by Contractor
in connection with the performance of its Services pursuant to this Agreement
are confidential until released by the City to the public and Contractor agrees that
such documents shall not be available to any individual or organization without
the written consent of the City prior to such release.
5.26. No reports, maps, or other documents produced in whole or in part under this
Agreement shall be the subject of an application for copyright by or on behalf of
Contractor.
Compliance with Authority
5.27. Contractor shall comply with all laws, regulations, executive orders and other
applicable requirements of any governmental agencies having jurisdiction
including the Fair labor Standards Act, the Occupational Safety and Health Act
and all those relating in any way to employment practices and protection of the
environment. Contractor shall not discriminate against any employee or any
applicant for employment for reasons of race, color, creed, religion, sex, sexual
preference, age or national origin.
5.28. Contractor shall make timely payment of all employment taxes and of all social
12
. .
security and other contributions of every kind required to be made with respect to
or measured by the wages and salaries of persons employed by Contractor.
5.29. Contractor shall indemnify City against. and hold City harmless from, any liability
or loss including liability or loss from fines or penalties arising out of Contractor's
failure to perform the obligations imposed upon it by Sections 5.28 and 5.29 of
the Agreement.
Progress Reports
5.30. Contractor shall meet with City staff, upon City's request, or as needed, in order
to provide reports or information concerning the Services being performed by
Contractor under this Agreement.
Contractor's License Classification
5.31. Contractor shall possess all appropriate licenses for the duration of this
Agreement.
Warranties
5.32. Contractor shall provide a standard one (1) year warranty that has all the
exclusions and inclusions of the paint manufacturer. All manufacturers'
warranties, any warranties typically provided by Contractor and any other
warranties made applicable by law shall apply to the Services.
SECTION 6. TERMINATION OF AGREEMENT
6.01. Unless otherwise terminated as provided in this Section, this Agreement will
continue in effect until such time as the Services have been completed, unless
otherwise extended according to the terms and conditions set forth in this
Agreement.
Non-Default Termination
6.02. City, at its sole discretion, may terminate this Agreement upon thirty (30) days
written notice to Contractor and such termination shall be effective in the manner
specified in such notice and shall be without prejudice to any claim that either
party may have against the other. During the thirty (30) day period after such
notice is sent, the parties shall continue to act toward each other in good faith.
6.03. In the event of any such termination, in full and complete settlement for the
termination of the Work, City shall pay Contractor for those Services performed
prior to the date of delivery of the termination notice, plus compensation for (i)
necessary Work performed during the notice period and authorized in the
13
termination notice, and (ii) all costs reasonably and necessarily incurred by
Contractor directly attributable to termination which could not reasonably have
been avoided and for which Contractor is not otherwise compensated that are
incurred through the date of termination and effectuating the termination
("Termination Expenses"). Termination Expenses shall not include lost profits,
lost opportunities, consequential damages, or the like. In no event shall total
payment exceed the Contract Price.
Termination on.Occurrence of Stated Events
6.04. This Agreement will terminate automatically on the occurrence of any of the
following events:
A. Bankruptcy or insolvency of either party; or
B. Sale of the Contractor; or
C. Assignment of this Agreement by Contractor without City's written
consent.
Termination for Default
6.05. If Contractor defaults in the performance of this Agreement or materially
breaches any of its provisions, City may immediately terminate this Agreement
by giving written notification to Contractor indicating the effective date of such
termination. Termination will take effect immediately upon the date specified in
the notification. For the purposes of this paragraph, material breach of this
Agreement includes, but is not limited to, the following:
A. Contractor's failure to perform, in a manner satisfactory to the City
in its sole discretion, the Services specified in Section 3 of this
Agreement; or
B. Contractor's material breach of any obligation or provision
contained in Section 5 of this Agreement.
6.06. The waiver by either party of a breach or default by the other party shall not be
deemed a waiver of any different or later breach; nor shall any delay or omission
by either party to exercise any right it may have hereunder operate as a waiver of
any breach or default of such a right. The failure of either party to this
Agreement to exercise any of its rights under this Agreement does not constitute
a breach thereof and shall not be deemed to be a waiver of such rights or a
waiver of any subsequent breach.
14
6.07. In the event of any termination of this Agreement or reduction in the scope of the
Work, Contractor shall not be entitled to damages for loss of profits for the
unexecuted portion of the Work or any other damages because of such
termination or reduction.
SECTION 7. GENERAL PROVISIONS
Notices
7.01. All notices, approvals, consents and other communications between the parties
shall be in writing, and shall be sent by fax or by certified mail (return receipt
requested) to the respective addresses set forth below, or at such other address
as may be furnished by either party to the other in writing. Faxed notices,
confirmed by copy thereof, shall be deemed communicated as of the day the
facsimile was sent. Mailed notices will be deemed communicated as of the day
of receipt or the third (3rd) day after mailing, whichever occurs first.
Contractor - Techno
Coatings, Inc.
Attn: Michael T. Birney
President/CEO
1391 Allec Street
Anaheim, CA 92805
City - City of Vernon
Attn: Bruce V. Malkenhorst, Jr.
Acting City Clerk
4305 Santa Fe Avenue
Vernon, CA 90058
Fax: 714-635-6357
Telephone: 714-635-1130
Fax: 323-826-1438
Telephone: 323-583-8811 ext 260
Entire Agreement of the Parties
7.02. This Agreement supercedes any and all agreements, either oral or written,
between the parties with respect to the rendering of Services by Contractor for
City and contains all o~ the representations, covenants, and agreements between
the parties with respect to the subject matter of this Agreement and the rendering
of those Services. Each party to this Agreement acknowledges that no
representations, inducements, promises, or agreements, orally or otherwise,
have been made by any party, or anyone acting on behal( of any party, which are
not contained in this Agreement, and that no other agreement, statement, or
promise not contained in this Agreement or a subsequent amendment or change
order shall be valid or binding. No amendment or change in the provisions of this
Agreement shall be made, except in a formal written amendment signed by
Contractor and an authorized representative of the City, or in a written change
order. Contractor expressly waives all claims for compensation based upon
quantum merit, implied contract or oral contract. Each party represents and
warrants that it has read and fully familiarized itself with this Agreement, and that
such party has been fully authorized to sign this Agreement.
15
. .
7.03. This Agreement shall be comprised of these included provisions, together with
Exhibits A and B, which are all attached. In the event of conflict between this
Agreement and any of the exhibits, including the Proposal, this Agreement shall
prevail.
Partial Invalidity
7.04. If any provision of this Agreement is held by a court of competent jurisdiction to
be invalid, void, or unenforceable, the remaining provisions will continue in full
force and effect without being impaired or invalidated in any way.
Law and Arbitration
7.05. All disputes arising out of or related to this Agreement, the conduct of either party
in connection with this Agreement, and the relationship and rights of the parties
in connection with this Agreement, whether characterized as breach of contract,
tort, or otherwise (except for those requesting injunctive relief) shall be
determined by binding arbitration in accordance with the terms of this Section,
The submittal of all matters to arbitration in accordance with the terms of this
Section is the sole and exclusive method, means and procedure to resolve any
and all claims, disputes or disagreements arising under this Agreement, except
for claims by either party which seek injunctive relief, which claims shall be
resolved by suit filed in the Superior Court of Los Angeles County, California, the
decision of which court shall be subject to appeal pursuant to applicable law.
The parties hereby irrevocably waive any and all rights to the contrary and shall
at all times conduct themselves in accordance with the terms of this Section,
relying on arbitration as the sole means of resolution of disputes. Arbitration of
all matters required to be arbitrated hereunder shall take place before a panel of
three retired judges of the Superior Court of the State of California (the
"Arbitrators") under the auspices of Judicial Arbitration & Mediation Services, Inc.
("JAMS"). Such arbitration shall be initiated by the parties, or either of them,
within ten (10) calendar days after either party sends notice of a demand to
arbitrate (the "Arbitration Notice") to the other party and to JAMS. The Arbitration
Notice shall contain a description of the subject matter of the arbitration, the
dispute with respect thereto, the amount involved, if any, and the remedy or
determination sought. Each party shall select a retired judge from the JAMS
panel, and the two selected judges shall mutually agree on the third retired judge
from the JAMS panel. If one of the parties does not select a retired judge from
the JAMS panel within fourteen (14) calendar days after receipt of the Arbitration
Notice, JAMS will select the second judge, and the judge selected by JAMS and
the judge selected by the other party will select the third judge for the panel. The
third judge is to be selected within ten (10) calendar days following the selection
of the first two judges. The three judges will together serve as the Arbitrators.
The arbitration shall be conducted in Los Angeles, California. Any party may be
represented by counsel and/or other authorized representative. In rendering a
16
decision(s), the Arbitrators shall determine the rights and obligations of the
parties according to the substantive and procedural laws of the State of C8tIIorrM
and the terms of this Agreement. The decision of the Arbitrators shall be based
on the evidence introduced at the hearing and accompanied by a written
statement of decision as to each of the principal controverted issues. The
agreement of two of the three Arbitrators as to the resolution of the dispute shal
be a conclusive resolution. The Arbitrators shall deliver the written decision to
the parties within thirty (30) calendar days following the date of the selection of
the last of the Arbitrators. The decision shall be conclusive and binding, and it
may thereafter be confirmed as a judgment by the Superior Court of the State of
California, subject only to challenge on the grounds set forth in the
California Code of Civil Procedure Section 1286.2. The validity and
enforceability of the decision of the Arbitrators is to be determined exclusively by
the California courts.
Attorney's Fees
7.06. In the event a dispute, claim or litigation arises regarding this Agreement, the
prevailing party shall be entitled to reimbursement for reasonable attorneys' fees
and actual costs, which may be set by the arbitrators or the court in the same
action or in a separate action brought for that purpose, in addition to any other
relief which is obtained.
7.07. Neither party shall be considered in default in any of its obligations under this
Agreement when a failure of performance shall be due to an uncontrollable force,
The term "uncontrollable force" shall mean any cause beyond the control of the
party affected, including, but not restricted to, flood, earthquake, storm, fire,
lightning, epidemic, war, riot, civil disturbance or disobedience, federal, state, or
municipal action, statute, ordinance, or regulation, embargoes of the United
States Government or any other government, which by exercise of due diligence
such party could not reasonably have been expected to avoid and by exercise of
due diligence has been unable to overcome. Either party rendered unable to
fulfill any of its obligations under this Agreement by reason of an uncontrollable
force shall give written notice within five (5) business days of such fact to the'
other party and shall exercise due diligence to remove such inability with all
reasonable dispatch.
7.08. Except as may otherwise be specifically provided herein, this Agreement may be
modified or amended only by a written document executed by both Contractor
and the City and approved as to form by the City Attorney.
7.09. The captions used in this Agreement are for convenience only and shall in no
way define, limit or describe the scope or intent of the Agreement or any part
thereof.
17
.
7.10. City reserves the right to award similar contracts to multiple contractors to ensure
the City has adequate services.
IN WITNESS WHEREOF, the parties have executed the Agreement on the dates
shown below.
Executed at
, California, on
City:
City of Vernon
Name: Leonis C. Malburg, Mayor
Date:
ATTEST:
Bruce V. Malkenhorst, Jr.
Acting City Clerk
APPROVED AS TO FORM:
Eric T. Fresch, City Attorney
Contractor:
Techno Coatings, Inc.
Name:
Title:
Date:
Name:
Title:
Date:
18
J j" .
t iJ( ~ i
EXHIBIT A
, .
.. .'( I-
(I
SCOPE OF WORK FOR PAINTING OF MGS AND STATION "A"
Station A
1. Concrete Walls:
a Remove loose and flaking. existing coating and plaster, pressure washing at 2,500-3,000
psi.
b. Apply one (I) coat of prep and primer sealer.
c. Apply one (1) coat of professional exterior flat finish.
d Provide alternate pricing for complete finishing of south face of Station A. from ground
level to parapet wall (low root):
i. Remove loose and fJ:II1cing. existing coating and plaster, pressure washing at
2,500-3,000 psi,
ii. Repair cmcks. patch spaIls and honeycombs.
iii Apply a medium textw'e coating. one (I) or two (2) coats as required. to provide
a more aesthetically pleasing appearance.
e. Color to be determined.
2. Window Fmmes and Sash. Handrails. Stairs. Pipe and Metal Doors and Fnunes (exterior only):
a Clean existing paint via pressure washing at 2,500-3,OOOpsi.
b. Clean areas of corrosion via hand tool to SP2.
c. Apply one (I) coat of prep and primer.
d Apply one (I) coat of professiOnal exterior flat finish.
e. Color to be determined.
(
3. Proposal will include the following:
a Provide firm lump sum proposal. including all labor, material. equipment. consumables,
taxes and insmance, ~ to perform all work outlined.
b. Insurance Schedule (Contractor):
i. The contmctor shall provide proof of insurance, including a standard certificate
of insumnce, in at least the following amounts and coverage (combined single
limit permitted), as presented
c. Satisfying all of the requirements of the Vernon Environmental Health Department's,
Lead Based Paint As.4lCSSD1ent and Risk Analysis dated Ian. 19.2004.
d AU personnel and environmental considemtions, so as to petform the work in accordance
with aU regulatory requirements.
e. Perform quality control testing and inspections, in accordance with corporate quality
control manual
f Provide all product descriptions and specifications, including all MSDS sheets.
g. Provide schedule for work to be completed.
h. Breakout as follows:
i. Concrete Walls
ii. Windows
iii Handrail. stairs and pipe
~'~""'"
Malbul'2 Generatin2 Station
4. Heat Recovery Steam Generators (HRSG) Casings:
a. Apply heavy duty cleaner.
b. Rinse via pressure washing. 2,000psi minimum. '. ... _
c. Prepare weld areas. black steel nutS and botts,' and areas damaged to bare metal. via hand
or power tool cleaning.
d Apply one (1) coat Bar-Rust 231 Multi..;Pwpose Epoxy Mastic, or equal. to all prepared
areas.
e. Apply one (1) coat of heat resistant silicone acrylic finish, ANSI No. 61 Gray overnlI.
1
. '.
. ~
. J1f ,ff
. ,
C.."
}
5. HRSG's H.andmil and Ladders:
'a Prepare weld areas and areas damaged to bare metal. via hand or power tool cleaning.
b. Hand sand overall to reduce gloss.
c. Apply one (I) coat Bar-Rust Multi-Purpose Epoxy Mastic, or equal. to all prepared areas.
d Apply one (I) coat Aliphatic Urethane Semi-Gloss Safety yellow overall.
6. Stacks:
a Apply heavy duty cleaner.
b. Rinse via pressure washin& 2,000psi minimum.
c. Prepare weld areas. black steel nuts and bolts. and areas damaged to bare metal. via hand
or power tool cleaning.
d Apply one (I) coat Bar-Rust 231 Multi-Purpose Epoxy Mastic. or equal. to all prepared
areas.
e. Apply one (I) coat of Aliphatic Urethane Semi-Gloss, or equal. ANSI No. 61 Gray
overall.
('.
7. Stacks Handrail and Ladders:
a Prepare weld areaS and areas damaged to bare metal. via hand or power tool cleaning.
b. Hand sand overaU to reduce gloss.
c. Apply one (I) coat Bar-Rust Multi-Purpose'Epoxy Mastic, or equal. to all prepared areas.
d Apply one (1) coat Aliphatic Urethane Semi-Gloss Safety yellow overa11.
8. Deaerator Structure:
a Prepare weld areas, black steel nuts and bolts. and areas damaged to bare metal. via hand
or power tool cleaning.
b. Apply one (1) coat Bar-Rust 231 Multi-Purpose Epoxy Mastic, or equal. to all prepared
areas.
c. Apply one (1) coat of Aliphatic Urethane Semi-Gloss, or equal. ANSI No. 61 Gray
overall.
9. Deaerator Handrnils and Ladders:
a Prepare weld areas and areas damaged to bare metal, via band or power tool cleaning.
b. Hand sand overall to reduce gloss.
c. Apply one (1) coat Bar-Rust Multi-Purpose Epoxy Mastic, or equal. to all prepared areas.
d Apply one (I) coat Aliphatic Urethane Semi-Gloss Safety yellow overall.
10. Treated Water Container:
a Apply heavy duty cleaner.
b. Rinse via pressure washing, 2,000psi minimum.
c. Prepare weld and areas damaged to bare metaI. via hand or power tool cleaning.
d Apply one (1) coat Bar-Rust 231 Multi-Purpose Epoxy Mastic, or equal. to all prepared
areas.
e. Apply one (I) coat of Aliphatic Urethane Semi-Gloss, ANSI No, 61 Gray overall.
1 I. Pipe (bare portions only), includes the condenser sheIl:
a Prepare weld areas and bare metal. via band or power tool cleaning.
b. Apply one (1) coat of Bar Rust 231 Multi-Purpose Epoxy Mastic, ANSI No. 61 Gray, and
at an prepared areas.
12. Pipe Idtnti1ication (all piping. both il1!l1llstted and non-in.c:vlated):
a Apply self-adhesive pipe identification markers, including colored background, contents.
and directional arrows.
i. MGS Opemtors will assist to ensure proper markings and flow directions.
,,--.
2
. ..
, ,
. ... "
, ,
(
13. BoUanIs:
a Prepare weld areas and areas damaged to bare metal. via haDd or power tool e--.
b. Apply one (1) ooat AJipba1ic Uretbane Semi-Gloss Safety yellow overall.
14. Proposal will include the following:
a Provide firm Imnp sum proposal. inc1udiug all Jabor, material. .~" 00JISI1mAhtes.
taxes and insm:ance. ~ty to perform aU work ontlinec1
b. Insumnce Schedule (Contractor):
i. The eontractor sbaU provide proof of iDsuran<:e. including a standard certificate
of insm:ance. in at least the following amounts and coverage (oombined single
limit permitted), as presented.
c. AU personnel and eovironmcotal considerations. so as to perform the wolt in accordance
with aU reguIatoJy requjremeuts.
d Perform quality control testing and inspections. in ~ with eorporate quality
control manual.
c. Provide all product descriptions and specifications. including all MSDS sheets.
f. Provide schedule for work to be completed.
g. Break out ~ as follows:
i: HRSQ's, including handmiJs and ladders.
ii. S1aCb. including handrails and ladders.
ill. Deaerator Structure. including handrails and ladders.
iv. Treated Water Conminer.
v. Pipe painting.
vi. Pipe identifiadions.
vii. BolJards.
(U
3
1 ~ ~.
.. It J
(,
Malbu
on Paint Pro osal
Techno Coatln Inc.
Includes all receivers and accumulators
c
I Total
Exclusions and Options
Exclude all bare piping and valves that exceeds 450 degrees F in temperature.
Spray paint through personnel protection and grating.
Sprin.kler piping south of GSU Blast Wall (energized areas)
Schedule
Six man crew to coat HRSG's in approximately 3-weeks.
$298,325.00 I
I ,
1 '" '"
.11I .., I
C'
Station "A" Paint P I
Techno CoatInas. Inc.
System 1:
Hand scrape and Roto Hydro Blast at 4,500psi. All loose and deteriorated $239,919.00
paint to be removed to sound surfaoe. Major amounts of old existing paint
will be left. These areas will be feathe~ back to existing surfaces. Prime
all surfaces and apply a heavy textured coating to blend back to existing
surfaces. From a distance, will provide unlfonn look. Up close, areas
feathered back will be visible.
Total for S 1 $239.919.00
System2:
Same as System 1, but fill the deficit areas with a textured coat prior to $332,127.00
coating all areas with a heavy textured coating. System will allow all
surfaces to be more unlfonn and consistent in thickness. Will be hard to
detect the old coating versus the new.
Total for SYStem 2 $332.127.00
System 3:
Per the written specifications provided by COV (scope of work). System will
look good only from a distance. Defects will be apparent on all the existing
building, with exception of lower front building that will be perfonned more in
line with System 2 above. System 3 is a combination of Systems 1 and 2
above.
Station" A. building as sDeCified in scope of work by COV. $209,979.00
Alternate pricing for lower south face of Station "A", ground level to parapet $68,750.00
(Jow root).
Total for SYStem 3 $278.729.00
('
).1
~ f
, '
CA&.,..... "'e. NO.. ....~7
Na"AD", ....C. NO. t a...
c._:, taDt ALL&C STltlElET . ANAHlrtM. CALIFORNIA 0:za08 . (71<1. eae-t 1.s0 . FAX ...".) 8.8-8.11...,
.cr GCl,.'t\O CODlti't\. a
November 7. 2005
Email: dsbibley@oi.vomon.ca.us
David L. Shibley
PROJECT LABoR GROUP, 1Nc.
2670 Leonis Blvd.
Vernon. CA 90058
Subject:
Painting/Coating of'MallJurg Generating Station
Add Finish Painting of'Structural Steel & Piping
In Areas o:fTouch Up Allowance
Dear Mr. Shibley.
Pursuant to your request f'or a quotation on subject work. we have reviewed the areas that were specified
as touch up on welds and abnlded areas only. We Wel'O directed to add finish coat(s) per CarboUJ1o.s
written specification to the described areas. Please add the fullowing amount to our quotation Cor this
additional work requested.
(
TO ADD Il1NISH COATS TO ALL AREAs AS OUTLINED: ._.......u.......~790.00
The f'ollowing areas 8Rl excluded:
1. Pealing Silencers Cans and Associated Pipes
2. O.S.U. Areas in Energized Areas South of'North Blast Wall
3. Ammonia Tank and Associated Equipment
4. All pipes and Valves exceeding 4500in temperature
The above quotation represents the areas as discussed in our job walk of' 1114/05. If this differs from your
understanding. please advise and we can make the necessary adjustments.
Note: Station A
We still owe you the data sheets f'or the IOOOAt acrylic that will be applied on the parapet walls. walls
between the two high roof's and the North walL I will get the data together and have the inf'ormation to
you late today. Does not affect any pricing.
If'you require additional infunnation. please call me.
v cry troIy yours.
~~nNGS,INC.
~~/~~
/~ ~Chael T. B'
President/CB
M~e
.~
, )t
Station A .
't #:
. . Page I of4
f ,,--~
(::
Shibley, Dave
From: Julia Duliae@technocoatings.com]
Sent: Wednesday, November 02, 2005 4:35 PM
To: Shibley, Dave
Cc: mrb@technocoatings.com; 'DON WATSON'
Subject: Answers to your questions
November 2, 2005
Email: dshibley@cLvemon.ca.us
David L. Shibley
PROJEer LABOR GROUP, INC. .
2670 Loonis Blvd.
Vernon, CA 90058
~~'-
,
Subject:
Answers to your questions on our
Painting proposal dated November 1, 2005 for
Station A and the Malburg Generating Station
Dear David,
Per your request, we are E-mailing the answers to your questions~ All Product Data Sheets and the
MSDS Sheets will be hand delivered along with the hard copies prior to noon tomorrow or November 3,
2005.
-------------------------------------------------------------------
Mike,
As is the obvious below, I have received your proposal and have the following comments:
You have added a generic statement that, "We (Techno) will furnish labor, materials, tools, equipment, insurance
and supervision to make ready all surfaces and applY the specified coatings for the total sums in each area of
work as outlined below." It is assumed that this statement is applicable to both bid proposals, i.e., Malburg
Generation Station and Station A. Yes, it is for both Stations.
.
I..ttiifMlA
,. It is assumed that all taxes, and any mark-ups, are included within the lump sum price provided.
Yee._ _ve included all taxes and markup in our lump sum price.
2. It is assumed that Techno will meet all insurance requirements as presented. This is a must, and Techno will
.. be considered without this requirement being met.
UN..'
:StatIon A
.Page 2 of 4
Techno Coatings has reviewed your insurance requirements and meet or exceed all the coverage and imits
requested on the bid package insurance schedule.
(
3. No mention of requirement that all personnel and environmental considerations, will be performed in
accordance with all regulatory requirements, e.g., Lead Based Paint Assessment and Risk Analysis, dated Jan.
19,2004.
Prior to proceeding with the lead abatement work on Station A or the Malburg Station, Techno Coatings will
sublTit for review and approval, a detailed site specific work plan meeting all regulatory requirements per
O.S.H.A and the EPA guidelines.
4. No mention of quality control testing and inspectors, but this will be included within the contract lump sum
agreement.
Techno Coatings is a certified SSPC QP-1, QP-2 and QP-3 contractor. These certifications verify that Techno
Coatings has the qualifications in all areas of this type of work. This includes employing our own QC NACE
Certified Inspectors and have the testing capabilities and all other control procedures in place to monitor the work.
5. No product descriptions, specifications or MSDS sheets were provided, as requested.
The PAREX products we have based our quotation on are as follows: Please find Product Data Sheets and
MSDS Sheets attached herewith.
A. Primer #310 100% AcryUc Parex - After cleaning, this product will be used to prime and seal all exterior
wall surfaces.
8. Filler #121 Dry - This product will be used to fill and blend voids or defects made by the old removed
paint. It is also a good adhesive to work with old edge of the paint so as to bind and assure adhesion at
the point of juncture from paint to the cement substrate.
C. Finish DPR Synthetic Finish - After cleaning and A & B above has been appled, the DPR will be
sprayedlshot applied in any number of textures. We have based our quotation on the heavy evenly
applied course texture. This will hide most of the defects that may exist better than the other textures.
D. Metal pipe, window sash and doors in good working order. Primer ICI Devoe Rustguard 4150 low VOC
Shop Coat Primer. Finish ICI Devoe Devflex 4020 Waterborne Exterior Finish.
6. You were requested to provide a schedule for supervision and craft cost per hour, for any additional work to be
performed on a Time and Material basis. Nothing was provided.
Time & Material Rate Sheets.
ST
I. Supervision... ....... ............................................... 72.74
2. Foreman. .......................... ........... ....................... 68.73
3. Master Journeyman............................................. 66.60
4. Certified Painter................. ....... ....... ...... .............. 57.35
5. Entry level Journeyman....................................... 53.09
6. Apprentice Rates
3rd.. .... ....... ........ ........................................... 32.24
4th.......~... ................. ................ .... ..... ....... .... 34.89
5th.... ................ ............ ............ ..... .... ........... 38,64
6th.... ................. ...... ............... ............. ..... .._. 42.24
7fh.. ..... ......... ..... ......... ................... ......... ...... 46.34
OT
88.91
83.82
81.12
69.39
64.01
38.27
41.56
45.66
49.99
54.93
Excluded Items
Please Note: As stated on the job walk, we have not included fixing of broken doors, windows, painting ofthe old
cooing equipment and associated equipment on the lower roof between the two high roofs, strip removal of paint
from metal handrails, windows or any other surfaces. All areas that may have energized equipment are to be
deenergized, while painting/coating next to same. We have not included painting of interior surfaces. All our work
win be considered exterior areas of work. We have not included painting of all stacks on the North Roof.
1119/2005
Station A
)(
'" ,~
l'r&ge3 of 4
Note: We will issue a standard 1 year warranty that has all exclusions and inclusions of the paint .....cturer.
(
-
Malburg Generating Station
1. It is assumed that all taxes, and any mark-ups, are included within the lump sum price provided.
(Same as Station A, answer #1)
2. As you did not go into any detail with regards to cleaning, prep, priming and finish coatings, it is assumed that
this will be performed as outlined. It is preferred that you provide a written description of methods and
materials to be employed.
(Answers for questions # 2 and 6) - Surface Preparation and Specified Coatings to be applied.
All surfaces that are specified to be painted will receive a High Pressure Water Wash to remove dirt and chalk
residue.
HRSG'S and Stacks: All rusted surfaces will receive a Hand and Power tool clean surface preparation followed
up with a one coat primer applcation of Carbofine 2977 (spot prime only). AppIcation of one full finish coat of
Carbofine Thermallne 4900 High Heat, color selected by owner. MSDS and Data Sheets enclosed.
Handrail and Structural Steel: All rusted surfaces will receive a Hand and Power tool clean surface preparation
followed up with a one coat primer application of Carboline 890 Epoxy (spot prime only), Application of one full
coat of Carboline 3359DTM AayHc. MSDS and Data sheets enclosed.
Techno Coatings have successfully applied the above-speclfied Carbofine Products on at least a dozen Power
Plants because of the following:
A~
f
. Low vac's Environmentally Friendly
. User Friendly
. Low Odor
. . Easy to touch-up for down the line maintenance
. Dry Fall consistency for overspray efimination
Inlet Duct Sound Continuation: High Pressure Water Wash, application of one full primer coat of Carboline
Rustbond and one full finish coat of Carboline 3359DTM Acrylic.
Price per unit: $ 5,600 Total bid Price for Two units: $ 11,200
If references are needed for past Power Plants, we can provide.
3. It is assumed that Techno will meet all insurance requirements as presented. This is a must, and Techno will
not be considered without this requirement being met.
(Same as Station A, answer #2)
4. No mention of requirement that all personnel and environmental considerations, will be performed in
accordance with all regulatory requirements.
Techno Coatings will submit for review and approval, a detailed site specific work plan meeting all regulatory
requirements per O.S.H.A. and the EPA guidelines.
5. No mention of quality control testing and inspectors, but this will be included within the contract lump sum
agreement.
(Same as Station A, answer #4)
6. No product descriptions, specifications or MSDS sheets were provided, as requested.
(lee Malburg Generating Station answer #2)
7. No indication that the Treated Water Container was included within the lump sum price.
.. .2OQ.QCl
J. You WQf8 requested to provide a schedule for supervision and craft cost per hour, for any additional work to be
performed on a Time and Material basis. Nothing was provided.
Jl~
(, MTB~e
",.
1119/2005
I r. "'
"f , .{ .
· -Pa..e" 4 df 4
., ..ra .
., " t' '"
'I'k -, ... .. '"'
EXHIBIT B
. ....
. ,Page 1 of 4
(
Shibley, Dave
From: Jula Duliae@technocoatfngs.com]
Sent: Tuesday, November 01, 2005 4:58 PM
To: Shibley, Dave
Cc: mrb@technocoatings.com
Subject: Malburg Generating Station and Old Vernon Diesel Plant
November 1, 2005
Email: dshibley@ci.vemon.ca.us
David L. Shibley
PRoner LABOR GROUP, INc.
2610 Loonis Blvd.
Vernon, CA 90058
Subject:
Painting/Coating of Malburg Generating Station and
Remedial Lead Abatement and Coating of Station A (Old Veroon Diesel Plant)
Dear Mr. Shibley,
Reference is made to your request for an itemized quotation as outlined under the Scope of Work for
painting of the MOS and Station A per our job walk of October 28,2005 regarding the subject project.
We will furnish labor, material, tools, equipment, insurance and supervision to make ready all swfaces
and apply the specified coatings for the total sums in each area of work as outlined below.
MAI.BURG GENERATING STATION
HRGS UNITS
LABOR
Total for One $ 67,720.00 X2 = $ 135,440.00
Total for One $ 17,200.00 X2 = $ 34,400.00
Stacks
Handrails
BRGS Rails
$ 2,120.00 X2 = $ 4,240.00
1'11912005
r :r. )
· .. :f .
· ",-adf..
(
Stair Tower Rails
Stack Rails
Dearator Rails
$ 2,120.00
$ 2,120.00
$ 4,440.00
$ 5,500.00
$ 21,774.00
$ 40.00
X2 =
X2 =
XI =
$ 4,240.00
$ 4,240.00
$ 4,440.00
$ 11,000.00
$ 21,774.00
$ 4,000.00
$ 223,774.00
Stair Tower
Dearator Rail
Bollards .
X2 =
XI =
XlOO =
Subtotal
PRonCf LABOR GROUP, INc.
November I, 2005
Page two of three
Add allowances to following:
Pipe Labels 2 men one week at a total cost of $4,640.00 and $10,000 Lin. Ft. of pipe with a label
every 30 at a cost of $20.00 per label is $6,666.00. Total estimated cost for pipe label application is
$11,306.00. Unit price will be used, should Techno Coatings go over in time, or deduction for under
cost. Structural steel and piping touch up allowance is 240 MH including equipment or $20,945.00.
Again, if we run under, we will reduce the cost or over increase. However, we feel we have allowed
more than enough for this work.
Exclude all bare piping and valves that exceeds 450 degrees in Temp.
Techno Coatings will spray paint through personal protection and grating.
Exclude all valves coming out of insulated pipe.
A six man crew should finish coat the HRSG unit in 3 weeks.
STATION A - (Old Vernon Diesel Plant)
As you are aware, the old Vernon Diesel Plant is anyone's guess as to how much of the old existing
paint can be removed off of this building without damaging the building beyond compare. Techno
Coatings with over 31 years experience and myself with over 40 years of experience in this type of work
has a pretty good guess. I know what was put on this building in the late 1970's. The product was
called Dum-Dum and it was not meant to be taken off after it applied. It was a fix-all cover up of all
crack and any other bad defects that may exist. However, as you can see it has become dry, brittle, old
and is peeling; not a forever fix as originally sold. It is a thick product and will be very hard to remove
where the Dum-Dum is still tight to the existing substrate.
With this in mind, I have provided 3 alternate Bids that have different approaches to solve the coating
problem of the Vernon Diesel Building.
I. System 1 - Hand scrape and Roto Hydro Blast with 4500 PSI all the loose and deteriorated paint
to a tight sound surface. Note: Major amounts of the old existing paint will be left. These areas
will be feathered back to existing swfaces. We will then prime all surfaces and apply a heavy
textured coating to blend in the deficit areas as best as possible. With this system, from some
distance, it will look uniform. However, up close you will see the areas that have been removed
&ct:bthered back to the existing swfaces.
11l9r.MJIJIJ
1 .....
. .. << ..
, PageJ,3 of 4
TOTAL SYSTEM 1:
$239,919.00
(,-
PROJECT LABOR GROUP, INC.
November I, 2005
Page three of three
2. System 2 - Same as System 1 but we will fill the deficit areas with a textured filler coat prior to
coating over all areas with a heavy textured coating. This system wiJI allow all surfaces to be
more uniform and consistent in thickness. It will be hard to see where the old coating was versus
the new. Only the trained eye will be able to see the difference. However, you will never cover
all the old defects.
TOTAL SYSTEM 2:
$332,127.00
3. System 3 - This system is per the written specifications. We want to note that this system will
look good from a distance only. If you get up close to the defects, they wiJI be very apparent on
all the existing buildings except the lower front building that will be performed more in the line of
our System 2. System 3 is a combination of our System I and 2.
I) Provide an alternate pricing for complete finishing of south face of Station A, from ground
level to parapet wall (low roof).
$68,750.00
2) Remainder of Station A Building as specified and explained above
TOTAL SYSTEM 3:
$209,979.00
$278,729.00
Please Note: We have based our quotation on working regular hours 7:00 a.m. to 4:30 p.m. Monday
through Friday. Terms are progress billings Net 30-days. 100.10 on Mobilization.
The three systems specified can work and will make the building look good in three different ways for
the amount of money you have budgeted. There are other alternate systems that we can come up with
that are less expensive or can cost much more, it is all ajudgment call. If you let Techno work with
your architect, we can come up with a system that will work for all involved while meeting the given
budget.
We want to make it understood that we can or will split these two projects. The Malburg project is a
clear cut project; however the A Plant or Old Vernon Diesel could go any way you want to put it
together. We feel we are best adapted to both jobs however we need to have a sit down meeting with a
clear understanding of what we are going to do on the A plan.
Thank you for the opportunity of submitting this proposal and we look forward to working with you in
the near future. Should you have any questions, I can be reached at 714/635-1130.
Very truly yours,
TECHNO COATINGS, INC.
Michael T. Birney
President/CEO
Il/9/2O&S
( MTB/je
pf,.
1119/2005
1 J'" ..
,
~ *'- .{ ~
· .pa~<4 df4
. -~-. .
,,~ .. .-
. .-.,',,"
..
EXHIBIT B
Form Chanl!e Order
CHANGE
Contract Number:
Change Number:
The requirements of the above designated Agreement are changed as follows:
City and Contractor agree that Contractor's compensation shall be adjusted as follows:
City and Contractor agree that Contractor's schedule shall be adjusted as follows;
This adjustment covers the entire compensation for the Change set forth above and includes, but
is not limited to compensation for all engineering, material, equipment, subcontracts, labor,
overhead, profit, changes in scheduling and delays resulting, directly or indirectly, from the
Change, as further detailed in the Agreement.
Contractor (Techno Coatings, Inc.)
City (City of Vernon, California)
By
By
Date
Date
B-1
.. t. ..
... .... r>: ..
" .....Ill~
~
INSTRUCTIONS TO CONTRACTOR
Contract Number:
Instruction to Contractor Number:
Date:
Specific Instructions to Contractor:
In accordance with the Terms and Conditions of the Agreement, the City classifies these
instructions as:
_ Supplementary instructions, not involving a Change
(Should these instructions be, in the opinion of Contractor, a "Change", written notice thereof
must be given to City within 10 days of the receipt of these instructions. If such written notice is
given, Contractor shall not commence with the work so ordered until written agreement is
reached on the classification of these instructions and on the resulting adjustment in contract
compensation, if any.) In the event that City and Contractor fail to agree on the classification of
these instructions or resulting adjustment in contract compensation, if any, refer to the Changes
Section of the Agreement.
A Change
(Contractor shall, within 10 days of the receipt of these instructions, furnish City a statement of
its proposal for adjustment in contract compensation occasioned hereby. Contractor shall not
commence with the work so ordered until written agreement is reached on the resulting
adjustment in contract compensation, if any.) In the event that City and Contractor fail to agree
on the classification of these instructions or resulting adjustments in contract compensation, if
any, refer to the Changes Sections of the Agreement.
City Representative
Date
Please acknowledge receipt of this instruction by returning one copy signed in the space
provided below. Contractor's signature hereon does not indicate his acceptance of the
classification assigned hereto by City.
Contractor Representative
Date
B-2
SUPPORTING
DOCUMENTS
SERVICES AGREEMENT
This AGREEMENT ("Agreement") is made, entered into and executed in
duplicate originals, either copy of which may be considered and used as the original
hereof for all purposes, as of this 16th day of November, 2005, in the City of Vernon,
County of Los Angeles, California
BY AND BElWEEN
CITY OF VERNON, a municipal
corporation, hereinafter referred to as
the "City"
4305 Santa Fe Avenue
Vernon, California 90058
AND
TECHNO COATINGS, INC., an
independent contractor, hereinafter
referred to as the "Contractor"
1391 Allec Street
Anaheim, CA 92805
RECITALS
WHEREAS, the City has constructed the Malburg Generating Station
("MGS") Combined Cycle Power Plant at 2715 E. 50th Street in the City of Vernon for
purposes of installing additional generating capacity; and
WHEREAS, the City has determined that it is in the best interest of the
City to retain the services of an independent contractor to paint the MGS facility and
Station A (collectively, the "Services"); and
WHEREAS, Contractor has prepared a Scope of Work, a letter dated
November 7, 2005 and e-mails dated November 1, 2005 and November 2, 2005,
describing the Services to be performed at the MGS facility and Station A (System 2),
copies of which are attached hereto as Exhibit A and incorporated by this reference
(collectively, the "Proposal"); and
WHEREAS, Contractor represents that it is qualified and capable of
furnishing the labor, materials, tools, equipment and expertise necessary to perform the
Services that the City requires, as set forth in this Agreement, and is willing to do so on
the terms and conditions set forth below; and
WHEREAS, the Services have been bid, and Contractor's cost proposal is
acceptable to the City; and
WHEREAS, the City desires to enter into an agreement with Contractor to
provide the Services on a contract basis as defined in the terms and conditions set forth
1
below.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
SECTION 1. TERM OF CONTRACT
1.01. This Agreement will become effective upon the full execution of this Agreement,
and will continue in effect until such time as the Contractor has completed the
work according to the Proposal, or until terminated or extended as provided in
this Ag'reement.
SECTION 2. DEFINITION OF TERMS -
2.01. Whenever used in the Agreement, the following terms shall mean:
A. "Agreement" shall mean that formally executed Agreement or Contract
which includes the Contract Documents attached. The Agreement
constitutes the entire agreement between the parties relating to its subject
matter.
B, "City" shall mean the City of Vernon, California, the entity which has
executed the Agreement and, where applicable, its affiliated companies,
and its officers, directors, employees, representatives and agents,
C. "Contractor" shall mean Techno Coatings, Inc. and where applicable, its
affiliated companies, and its officers, directors, employees,
representatives and agents.
D. "Contract Documents" shall include any inquiry, invitation to bid, or
proposal which may have, but not necessarily, preceded execution of the
Agreement, and including the General Provisions and all exhibits and
schedules attached to the Agreement and all plans and specifications
identified in the Contract Documents.
E. "Contract Price" shall mean the compensation set forth or provided for in
Section 4.01 of this Agreement. Whether it expressly provides for the
reimbursement of costs incurred by Contractor or simply for the payment
of a lump sum of money, it is intended to be the full and complete payment
for satisfactory completion of the Work and, unless otherwise stated, to
cover all costs whether for materials, equipment, tools, labor, services and
taxes and all overhead, rentals and profit or fee, if any.
F. "General Provisions" or "General Conditions" shall mean the General
Provisions as set forth in this Agreement.
2
G. "MSDS Sheets" and "Product Data Sheets" shall mean standard
hazardous material submittals that are a part of the overall Quality
Assurance/Quality Control procedure that are on record at the work site.
H. "Premises" shall mean the physical premises under City's control or
ownership where Work hereunder is to be performed.
I. "Proprietary Information" and "Confidential Information" shall mean all
information, whether written or oral, which Contractor acquires from,
through or on behalf of City, directly or indirectly, or which arises out of the
Work, concerning the Work or proprietary processes involved in the Work
including, without limitation, information concerning past, present or future
business plans of City, information about the operations of City's
Premises, and other City information or know-how obtained during the
Work, except information falling into any of the following 'categories:
1. Information which, at the time of disclosure hereunder, is in the
public domain;
2. Information which, after disclosure hereunder, enters the public
domain, except where such entry is the result of Contractor's or any
entity within Contractor's control breach of this Agreement;
3. Information which, prior to disclosure hereunder, was already in
Contractor's possession without limitation regarding disclosure to
others; or
4. Information which, subsequent to disclosure hereunder, is obtained
by Contractor from a third party who is lawfully in possession of
such information and not subject to a contractual or fiduciary
relationship to City with respect to said information and who does
not require Contractor to agree to refrain from disclosing such
information to others.
J. "Subcontractor" shall mean any first or lower-tier subcontractor and its
employees, representatives, agents, subcontractors or other personnel
who have been approved in the manner required by this Agreement.
K 'Work" or "Services" shall mean the work performed by Contractor and
required to be performed from time to time by City under this Agreement.
II/
II/
3
SECTION 3. SERVICES TO BE PERFORMED BY
CONTRACTOR
Specific Services
3.01. Contractor's Services shall include, but will not be limited to, furnishing the labor,
materials, tools, equipment and expertise necessary to perform the Services.
The Contractor's Services are more specifically detailed in the Proposal attached
hereto as Exhibit A.
Change of Services
3.03. City may at any time, by written change order executed by the Director of Light &
Power, make changes only to extend the Work duration and total compensation
of Contractor's Work. Changes in the scope of Work, or duties and obligations,
shall be authorized only by the City.
3.04. City may make "Changes. by increasing, reducing or deviating from the
requirements of the scope of Work. A form of Change Order is set forth in
Exhibit B attached hereto and incorporated by reference.
Timing of Services
3.05. Contractor's Services shall commence upon the execution of this Agreement by
both parties and award by the City Council and shall end at such time as the
Contractor has completed the work according to the Proposal, unless the
Agreement is otherwise terminated or extended upon written agreement of both
parties to this Agreement.
3.06. Time is of the essence for all Work contemplated by this Agreement. Contractor
shall start performing Services under this Agreement only after notification by the
City.
Method of Performing Services
3.07. Contractor will determine and is responsible for the method, details, and means
of performing. the above-described Services.
Status of Contractor
3.08.. Contractor enters into this Agreement, and will remain throughout the term of this
Agreement, as an independent contractor. Contractor agrees that it is not and
will not become an employee, partner, agent, or principal of City while this
Agreement is in effect. Contractor agrees it is not entitled to the rights or benefits afforded to City's employees, including disability or unemployment insurance,
4
workers' compensation, medical insurance, sick leave, or any other employment
benefit. Contractor is responsible for providing, at its own expense, disability,
unemployment, and other insurance, worker's compensation, training, permits,
and licenses for itself and for its employees and subcontractors. Contractor shall
have complete and sole control over its employees, the details of the Services
and methods by which the Services are accomplished, it being understood that
City is interested only in the results to be obtained by Contractor.
3.09. Contractor has no authority to enter contracts or agreements on behalf of City.
This Agreement does not create a partnership or joint venture between the
parties.
Payment of Taxes
3.10. Contractor is responsible for paying when due all income taxes, including
estimated taxes, incurred as a result of the compensation paid by City to the
Contractor for Services under this Agreement. Contractor agrees to indemnify
City for any claims, costs, losses, fees, penalties, interest, or damages suffered
by City resulting from Contractor's failure to comply with this provision.
3.11. Payroll taxes including federal, state and local taxes shall not be withheld or paid
by City on behalf of Contractor or for the employees of the Contractor.
Contractor shall not be treated as an employee with respect to the Services .
performed hereunder for federal or state tax purposes. Contractor shall be
responsible to pay taxes mandated by law.
3.12. Since Contractor is not an employee of City, Contractor is not eligible for and
shall not participate in any employee benefit of City, including pension, health or
other fringe benefits.
SECTION 4. COMPENSATION
4.01. In consideration for the Services to be performed by Contractor, described in
Section 3 of this Agreement, City agrees to pay Contractor the sum of Six
Hundred Thirty Thousand Four Hundred Fifty-Two Dollars and nol1 00
($630,452.00) (the "Contract Price"). In the event additional Work needs to be
performed as authorized by the Director of Light & Power, such Work shall be
performed by Contractor on a time-and-material basis, according to the Time &
Material Rate Sheets set forth in Exhibit A.
Entire Compensation
4.02. The Contract Price is full and complete compensation, and constitutes the entire
compensation due Contractor for the Services and any and all of Contractor's
obligations hereunder, regardless of difficulty, unforeseen circumstances, hours
5
worked or equipment, materials or personnel required. The Contract Price
includes without limitation compensation for applicable taxes, customs duties,
fees, overhead, profit, travel time to and from the Premises and all other direct
and indirect costs incurred or to be incurred by Contractor hereunder. The
Contract Price set forth above is not subject to escalation for any reason except
as expressly set forth in this Agreement. No adjustments in compensation shall
be made as a result of changes in the value of any currency. The Contract Price
shall only be adjusted by formal, written.Change Order or amendment to this
Agreement.
Payment of Compensation
4.03. For Services rendered under Section 3 of this Agreement, City agrees to pay
Contractor the sum set forth in Paragraph 4.01 of this Agreement on completion
of Work and within thirty (30) days of acceptance and approval of an invoice
prepared in accordance with City requirements.
4.04. For Services rendered under Section 3 of this Agreement, Contractor shall be
entitled to receive monthly payments. Contractor shall submit to City a monthly
invoice and statement of Services, prepared in accordance with City
requirements, by the fifteenth (15th) of each month, for the prior calendar month's
completed Work. City will make payments to Contractor within thirty (30) days
after acceptance and approval of the invoice received from Contractor.
4.05. Contractor shall be responsible for paying any subcontractors used in the
performance of this Agreement. Subcontractors shall not bill the City directly.
Expenses
4.06. City shall not be liable to Contractor for any expenses paid or incurred by
Contractor. Expenses may only be billed if advance written approval has been
obtained from the City Administrator.
Compensation for Changes
4.07. The compensation due Contractor, or the credit due City, for changes may not be
established verbally, and shall be established in a written change order signed by
City as described in Sections 3.03 and 3.04 of this Agreement. Compensation
adjustments in each such change order shall be established by one or more of
the following bases, as determined by City: (a) a lump sum price to be negotiated
between the parties; or (b) Work unit rates to be negotiated between the parties.
Once established, the amount of the compensation due Contractor or credit due
City for a change shall not be subject to adjustment for any reason, including
changes in the value of any currency.
6
SECTION 5. OBUGA TIONS OF THE PARTIES
5.01. Contractor is responsible for meeting all conditions of this Agreement and City
Standards & Details for all Work performed. Substandard Work, as determined
solely by the City, shall be redone at the expense of the Contractor.
Products of Consulting
5.02. All products of consulting services including, but not limited to, manuals,
documents and/or computer software, shall become the property of the City and
shall be delivered to the City before the end of the performance of this
Agreement. Basic notes and sketches, charts, computations and other data shall
be made available to City without restriction or limitation on their use.
Liability Insurance
5.03. Contractor and its subcontractor(s), if any, shall, prior to commencement of any
Work and for the duration of this Agreement, obtain and maintain at its own
expense, those minimum levels of insurance coverage as set forth below. Prior
to commencing Work hereunder, Contractor shall provide the City with proof of
insurance providing and maintaining the coverages and endorsements set forth
below. Said proof of insurance shall also provide that said policy or policies shall
not be canceled or materially reduced in coverage without giving at least thirty
(30) days prior written notice to the City.
5.04. The insurance coverage as listed herein, shall be properly endorsed to include
those contractual obligations which may be identified further within this
Agreement and shall be endorsed to provide City all the rights and privileges of
an additional insured.
5.05. Contractor shall cause its insurers to issue, including but not limited to,
Certificates of Insurance or, upon request, certified copies of the insurance
policies evidencing that the coverages and policy endorsements required under
this Agreement, are maintained in force.
5.06. Contractor shall ensure its subcontractor(s), if any, maintain those insurance
requirements as specified in this Agreement and are endorsed as additional
insured(s) on all required Contractor insurance coverages. Contractor and its
subcontractor(s), if any, shall maintain in effect the following minimum insurance
coverages on an Occurrence Form Policy:
A. Workers Compensation within the statutory limits,. including occupational
illness or disease coverage in accordance with the laws of the nation,
state, territory, or province exercising jurisdiction over Contractor's
emplOyees. Workers Compensation and Employers Liability Insurance
7
shall have a minimum limit of $1,000,000 per occurrence. Contractor
further agrees to hold harmless and indemnify City for any and all claims
arising out of an injury, disability, or death of any of Contractor's
employees or agents.
B. Comprehensive General Liability Insurance, including, but not limited to,
Contractual Liability, Products and Completed Operations Liability, Broad
Form Property Damage and Bodily Injury Liability, and Explosion,
Collapse and Underground Liability, with a minimum combined single limit
of $2,000,000 per occurrence.
C. Comprehensive Automobile Insurance, including, but not limited to, all
owned, non-owned or hired vehicles with a minimum combined single limit
of $1,000,000 per occurrence for bodily injury and property damage.
D. Excess Liability Insurance with limits of $2,000,000. Such evidence of
insurance can either be through the primary insurance coverages or
through an excess policy. Such insurance shall at all times be on an
occurrence form and provide policy conditions as broad as those required
in the primary insurance.
5.07. Contractor agrees to provide insurance in the amounts and forms specified
above. Contractor shall submit to the City documentation indicating compliance
with these minimum requirements no less than one (1) day prior to the beginning
of performance under this Agreement. Contractor shall not commence
performance of its Work under this Agreement until the above insurance has
been obtained and proof of insurance has been filed with and approved by the
City.
5.08. Contractor shall not permit a subcontractor or vendor to perform work on City
premises unless and until a certificate of insurance is obtained showing that such
subcontractor or vendor has worker's compensation coverage. If Contractor
employs subcontractors as part of the Services rendered, Contractor's protective
coverage is required. Contractor may include all subcontractors as insureds
under its own policy or shall furnish separate insurance for each subcontractor,
meeting the requirements set forth above.
Representations
5.09. To the fullest extent permitted by law, Contractor shall defend, indemnify and
hold harmless City and its elected officials, officers, agents and employees from
all claims, suits, actions, demands, damages, liabilities, expenses, judgments,
settlements, and penalties, losses, fines, and all costs and expenses incurred in
connection therewith, including reasonable attorney's fees and all costs of
defense, arising out of or attributable to the negligent or Wfongful acts of
8
, .
Contractor or its employees or agents under this Agreement, except to the extent
arising from or caused by the sole negligence or willful misconduct of the City, its
officers, agents or employees. The terms of this indemnity shall survive the
termination of this Agreement. The obligations in this Paragraph are in addition
to Contractor's duty to provide insurance and shall not be limited by any limitation
on the amount or type of insurance coverage carried by Contractor.
5.10. Contractor and City represent that each has read and understands the
Agreement and Contract Documents. The Contractor represents it understands
the CitY's regulations concerning Premises access, badges, parking, security,
safety, fire, prohibited drugs and alcohol, and smoking and other rules, and that
Contractor has visited Premises where the Work is to be done and is familiar with
the local conditions under which it is to be done. Contractor also represents that
it is experienced in performing and competent and qualified to perform the kind of
tasks or assignments included in the Work and employs or has available for
employment insufficient numbers all unskilled, skilled, administrative,
supervisory, professional and managerial or other personnel required to perform
the Work as required by this Agreement.
5.11. Contractor represents that it has the qualifications and skills necessary to
perform the Services under this Agreement in a competent, professional manner,
without the advice or direction of City. This means Contractor is able to fulfill the
requirements of this Agreement. Failure to perform all the Services required
under this Agreement constitutes a material breach of the Agreement.
Contractor has complete and sole discretion for the manner in which the Work
under this Agreement will be performed.
5.12. Contractor declares and states that is has complied with and will continue to
comply with all federal, state and local laws regarding business permits and
licenses that may be required to carry out the.. Services to be performed under
this Agreement.
5.13. Contractor agrees to indemnify, defend, and hold City free and harmless from all
claims, demands, losses, costs, expenses, obligations, liabilities, damages,
recoveries and. deficiencies, including interest, penalties, attorney's fees and
costs, that City may incur as a result of a breach by Contractor of any
representation or provision contained in this Agreement or any negligent or
intentional acts or omissions by Contractor, it subcontractors, agents, and
employees or based on any claim that any software program or other product
used or furnished by Contractor in the performance of this Agreement constitutes
an infringement of any United States patent or copyright.
5.14. Contractor's rights under this Agreement may not be assigned nor may its duties
be delegated or subcontracted without the prior written consent of City. Any
assignment or delegation or subcontract in violation of this Section shall, at City's
9
sole discretion, be void. Consent by City shall not relieve Contractor of
responsibility for performance of Contractor's obligations hereunder. City may
assign all or any part of this Agreement at any time effective immediately upon
written notification to Contractor.
5.15. At all times while Work is being performed on the Premises each party shall be
represented thereon by a designated representative. Each party may notify the
other in writing of the identity of such persons from time to time.
Work Injury
5.16. The treatment and care of injuries sustained by Contractor's employees,
subcontractors, representatives or other personnel shall be and remain the
responsibility of Contractor. City's first aid facilities, if any, however, will be made
available to Contractor's employees in emergency cases which are the direct
result of accidents occurring on the Premises. City shall incur no liability for, and
Contractor hereby agrees to indemnify City against, any causes of action, claim,
liability or costs, including attorney's fees, arising in whole or part out of the
furnishing of such first aid facilities or assistance to Contractor's employees,
subcontractors, representatives or other personnel, or out of the failure to furnish
such facilities or assistance.
Records, Inspection and Audit
5.17. During the course of Work being performed, Contractor and any of its
subcontractors, shall maintain and retain, not less than three (3) years after
completion thereof, complete and accurate records of the Contractor's costs
which are chargeable to the City under this Agreement. City or its designated,
authorized representatives, shall have the right during this three (3) year period,
upon written reasonable notice, to inspect and audit those records. Such records
to be maintained and retained by the Contractor shall include: (a) payroll record
accounting for the total time distribution of the Contractor's employees working
full or part time on the Work (to permit tracing to payroll payments in cash); (b)
invoices for purchases, receiving and issuing documents, and all the other unit-
inventory records for the Contractor's stores, stock or capital items; (c) paid
invoices and canceled checks for material purchased and for the subcontractor's
and any other third parties' charges; and (d) any other documentation City deems
necessary to support costs and charges under this Agreement.
Corporate Conduct
5.18. Contractor, its employees, agents or representatives shall not offer or give to an
officer, official or employee of City gifts, entertainment, payments, loans or other
gratuities to influence the award of a contract or obtain favorable treatment under
this Agreement or any other contract.
10
Standard of Care
5.19. Contractor agrees that all Services provided will be conducted by the principal
and competent staff members, if any, under the supervision of the principal, and
that Services will be performed and rendered diligently. Contractor represents
that it has, or shall secure, at its own expense, all personnel required to perform
Contractor's Services under this Agreement, but at all times shall be responsible
for the Services of such personnel. Contractor may not employ any
subcontractor without the prior written approval of the City.
Indemnity Process
5.20. The City shall notify Contractor in writing of any suits, claims or demands
covered by any indemnity contained in this Agreement. Promptly after receipt of
such notice, Contractor shall assume the defense of such claim with counsel
reasonably satisfactory to City. If Contractor fails, within a reasonable time after
receipt of such notice, to assume the defense with counsel reasonably
satisfactory to City, or if, in the reasonable judgment of City, a direct or indirect
conflict of interest exists between the parties with respect to the claim, or if in the
sole judgment of City the assumption and conduct of the defense by Contractor
would materially and adversely affect City in any manner or prejudice its ability to
conduct a successful defense, then the City shall have the right to undertake the
defense, compromise and settlement of such claim for the account and at the
expense of Contractor. Notwithstanding the above, if the City in its sole
discretion so elects, City may also participate in the defense of such actions by
employing counsel at its expense, without waiving the Contractor's obligations to
indemnify or defend. Contractor shall not settle or compromise any claim or
consent to the entry of any judgment without the prior written consent of the City
and without an unconditional release of all liability by each claimant or plaintiff to
the City.
Treatment of Confidential and Proprietary Information
5.21. For ten (10) years after the effective date of this Agreement, Contractor shall
refrain from using any Confidential or Proprietary Information except in
connection with the Work or from disclosing it to any third party other than to
employees of Contractor who require it in performance of the Work and except to
such other third persons as City may authorize in writing. If disclosure to such an
employee or to other third persons is so authorized, Contractor shall enter into
with said party a confidentiality agreement containing provisions with respect to
use and disclosure of Proprietary Information substantially the same as those
contained in this Agreement.
5.22. Contractor shall take reasonable precautions to safeguard any documents
11
containing Proprietary Information which City may supply to Contractor
hereunder. Contractor may copy, in whole or part, such documents to the extent
necessary for the performance of the Work, and Contractor shall return to City
upon the completion of the Work or request by City all such documents and
copies.
5.23. Except as expressly permitted by prior written consent of the City, Contractor
and/or its subcontractors shall not disclose, permit the disclosure of, release,
disseminate, or transfer, whether orally or by any other means, any part of such
Confidentiallnforrnation to any other person or entity. Contractor and/or its
subcontractors shall return any written Confidential Information and all copies
made of such items to the City upon the City's written request, but in any event
not later than the date that Contractor has performed all Work to be performed
pursuant to this Agreement. Contractor hereby agrees that such Confidential
Information and any documents provided may be used by Contractor and/or its
subcontractors only as authorized by the City. Contractor shall include a
provision in its agreements with subcontractors that binds the subcontractors to
this non-disclosure requirement.
5.24. All reports, plans, data, studies, maps, drawings, models, photographs,
documents and other writings prepared by and for Contractor, its officers,
employees, agents and subcontractors in the course of implementing this
Agreement, with the exception of working notes, internal documents and
Confidential Information provided by businesses located in City, shall be
considered the property of City. Contractor shall deliver such documents and
materials to the City as they are generated; however, Contractor may take and
retain copies of said documents and materials that are not Confidential
Information, as desired.
5.25. All reports, information, data and exhibits prepared or assembled by Contractor
in connection with the performance of its Services pursuant to this Agreement
are confidential until released by the City to the public and Contractor agrees that
such documents shall not be available to any individual or organization without
the written consent of the City prior to such release.
5.26. No reports, maps, or other documents produced in whole or in part under this
Agreement shall be the subject of an application for copyright by or on behalf of
Contractor.
Compliance with Authority
5.27. Contractor shall comply with all laws, regulations, executive orders and other
applicable requirements of any governmental agencies having jurisdiction
including the Fair labor Standards Act, the Occupational Safety and Health Act
and all those relating in any way to employment practices and protection of the
12
environment. Contractor shall not discriminate against any employee or any
applicant for employment for reasons of race, color, creed, religion, sex, sexual
preference, age or national origin.
5.28. Contractor shall make timely payment of all employment taxes and of all social
security and other contributions of every kind required to be made with respect to
or measured by the wages and salaries of persons employed by Contractor.
5.29. Contractor shall indemnify City against, and hold City harmless from, any liability
or loss'including liability or loss from fines or penalties arising out of Contractor's
failure to perform the obligations imposed upon it by Sections 5.28 and 5.29 of
the Agreement.
Progress Reports
5.30. Contractor shall meet with City staff, upon City's request, or as needed, in order
to provide reports or information concerning the Services being performed by
Contractor under this Agreement.
Contractor's License Classification
5.31. Contractor shall possess all appropriate licenses for the duration of this
Agreement.
Warranties
5.32. Contractor shall provide a standard one (1) year warranty that has all the
exclusions and inclusions of the paint manufacturer. All manufacturers'
warranties, any warranties typically provided by Contractor and any other
warranties made applicable by law shall apply to the Services.
SECTION 6. TERMINATION OF AGREEMENT
6.01. Unless otherwise terminated as provided in this Section, this Agreement will
continue in effect until such time as the Services have been completed, unless
otherwise extended according to the terms and conditions set forth in this
Agreement.
Non-Default Termination
6.02. City, at its sole discretion, may terminate this Agreement upon thirty (30) days
written notice to Contractor and such termination shall be effective in the manner
specified in such notice and shall be without prejudice to any claim that either
party may have against the other. During the thirty (30) day period after such
notice is sent, the parties shall continue to act toward each other in good faith.
13
6.03. In the event of any such termination, in full and complete settlement for the
termination of the Work, City shall pay Contractor for those Services performed
prior to the date of delivery of the termination notice, plus compensation for (i)
necessary Work perfonned during the notice period and authorized in the
termination notice, and (ii) all costs reasonably and necessarily incurred by
Contractor directly attributable to termination which cot,lId not reasonably have
been avoided and for which Contractor is not otherwise compensated that are
incurred through the date of termination and effectuating the termination
("Termination Expenses"). Termination Expenses shall not include lost profits, ,.
lost opportunities, consequential damages, or the like. Inno event shall total
payment exceed the Contract Price.
Termination. on Occurrence of Stated Events
6.04. This Agreement will tenninate automatically on the occurrence of any of the
following events:
A. Bankruptcy or insolvency of either party; or
B. Sale of the Contractor; or
C. Assignment of this Agreement by Contractor without City's written
consent.
Termination for Default
6.05. If Contractor defaults in the performance of this Agreement or materially
breaches any of its provisions, City may immediately terminate this Agreement
by giving written notification to Contractor indicating the effective date of such
termination. Termination will take effect immediately upon the date specified in
the notification. For the purposes of this paragraph, material breach of this
Agreement includes, but is not limited to, the following:
A. Contractor's failure to perform, in a manner satisfactory to the City
in its sole discretion, the Services specified in Section 3 of this
Agreement; or
B. Contractor's material breach of any obligation or provision
contained in Section 5 of this Agreement.
6.06. The waiver by either party of a breach or default by the other party shall not be
deemed a waiver of any different or later breach; nor shall any delay or omission
by either party to exercise any right it may have hereunder operate as a waiver of
14
any breach or default of such a right. The failure of either party to this
Agreement to exercise any of its rights under this Agreement does not constitute
a breach thereof and shall not be deemed to be a waiver of such rights or a
waiver of any subsequent breach.
6.07. In the event of any termination of this Agreement or reduction in the scope of the
Work, Contractor shall not be entitled to damages for loss of profits for the
unexecuted portion of the Work or any other damages because of such
termination or reduction.
SECTION 7. GENERAL PROVISIONS
Notices
7.01. All notices, approvals, consents and other communications between the parties .
shall be in writing, and shall be sent by fax or by certified mail (return receipt
requested) to the respective addresses set forth below, or at such other address
as may be furnished by either party to the other in writing. Faxed notices,
confirmed by copy thereof, shall be deemed communicated as of the day the
facsimile was sent. Mailed notices will be deemed communicated as of the day
of receipt or the third (3rd) day after mailing, whichever occurs first.
Contractor - Techno
Coatings, Inc.
Attn: Michael T. Birney
President/CEO
1391 AlIec Street
Anaheim, CA 92805
City - City of Vernon
Attn: Bruce V. Malkenhorst, Jr.
Acting City Clerk
4305 Santa Fe Avenue
Vernon, CA 90058
Fax: 714-635-6357
Telephone: 714-635-1130
Fax: 323-826-1438
Telephone: 323-583-8811 ext 260
Entire Agreement of the Parties
7.02. This Agreement supercedes any and all agreements, either oral or written,
between the parties with respect to the rendering of Services by Contractor for
City and contains all of the representations, covenants, and agreements between
the parties with respect to the subject matter of this Agreement and the rendering
of those Services. Each party to this Agreement acknowledges that no
representations, inducements, promises, or agreements, orally or otherwise,
have been made by any party, or anyone acting on behalf of any party, which are
not contained in this Agreement, and that no other agreement, statement, or
promise not contained in this Agreement or a subsequent amendment or change
order shall be valid or binding. No amendment or change in the provisions of this
Agreement shall be made, except in a formal written amendment signed by
15
Contractor and an authorized representative of the City, or in a written change
order. Contractor expressly waives all claims for compensation based upon
quantum merit, implied contract or oral contract. Each party represents and
warrants that it has read and fully familiarized itself with this Agreement, and that
such party has been fully authorized to sign this Agreement.
7.03. This Agreement shall be comprised of these included provisions, together with
Exhibits A and B, which are all attached. In the event of conflict between this
Agree~nt and any of the exhibits, including the Proposal, this Agreement shall
prevail.
Partial Invalidity
7.04. If any provision of this Agreement is held by a court of competent jurisdiction to
be invalid, void, or unenforceable, the remaining provisions will continue in full
force and effect without being impaired or invalidated in any way.
Law and Arbitration
7.05. All disputes arising out of or related to this Agreement, the conduct of either party
in connection with this Agreement, and the relationship and rights of the parties
in connection with this Agreement, whether characterized as breach of contract,
tort, or otherwise (except for those requesting injunctive relief) shall be
determined by binding arbitration in accordance with the terms of this Section.
The submittal of all matters to arbitration in accordance with the terms of this
Section is the sole and exclusive method, means and procedure to resolve any
and all claims, disputes or disagreements arising under this Agreement, except
for claims by either party which seek injunctive relief, which claims shall be
resolved by suit filed in the Superior Court of Los Angeles County, California, the
decision of which court shall be subject to appeal pursuant to applicable law.
The parties hereby irrevocably waive any and all rights to the contrary and shall
at all times conduct themselves in accordance with the terms of this Section,
relying on arbitration as the sole means of resolution of disputes. Arbitration of
all matters required to be arbitrated hereunder shall take place before a panel of
three retired judges of the Superior Court of the State of California (the
"Arbitrators") under the auspices of Judicial Arbitration & Mediation Services, Inc.
("JAMS"). Such arbitration shall be initiated by the parties, or either of them,
within ten (10) calendar days after either party sends notice of a demand to
arbitrate (the "Arbitration Notice") to the other party and to JAMS. The Arbitration
Notice shall contain a description of the subject matter of the arbitration, the
dispute with respect thereto, the amount involved, if any, and the remedy or
determination sought. Each party shall select a retired judge from the JAMS
panel, and the two selected judges shall mutually agree on the third retired judge
from the JAMS panel. If one of the parties does not select a retired judge from
the JAMS panel within fourteen (14) calendar days after receipt of the Arbitration
Notice, JAMS will select the second judge, and the judge selected by JAMS and
16
the judge selected by the other party will select the third judge for the panel. The
third judge is to be selected within ten (10) calendar days following the selection
of the first two judges. The three judges will together serve as the Arbitrators.
The arbitration shall be conducted in Los Angeles, California. Any party may be
represented by counsel and/or other authorized representative. In rendering a
decision(s), the Arbitrators shall determine the rights and obligations of the
parties according to the substantive and procedural laws of the State of California
and the terms of this Agreement. The. decision of the Arbitrators shall be based
on the evidence introduced at the hearing and accompanied by a written
statement of decision as to each of the principal controverted issues. The
agreement of two of the three Arbitrators as to the resolution of the dispute shall
be a conclusive resolution. The Arbitrators shall deliver the written decision to
the parties within thirty (30) calendar days following the date of the selection of
the last of the Arbitrators. The decision shall be conclusive and binding, and it
may thereafter be confirmed as a judgment by the Superior Court of the State of
California, subject only to challenge on the grounds set forth in the
California Code of Civil Procedure Section 1286.2. The validity and
enforceability of the decision of.the Arbitrators is to be determined exclusively by
the California courts.
Attorney's Fees
7.06. In the event a dispute, claim or litigation arises regarding this Agreement, the
prevailing party shall be entitled to reimbursement for reasonable attorneys' fees
and actual costs, which may be set by the arbitrators or the court in the same
action or in a separate action brought for that purpose, in addition to any other
relief which is obtained.
7.07. Neither party shall be considered in default in any of its obligations under this
Agreement when a failure of performance shall be due to an uncontrollable force.
The term "uncontrollable force" shall mean any cause beyond the control of the
party affected, including, but not restricted to, flood, earthquake, storm, fire,
lightning, epidemic, war, riot, civil disturbance or disobedience, federal, state, or
municipal action, statute, ordinance, or regulation, embargoes of the United
States Government or any other government, which by exercise of due diligence
such party could not reasonably have been expected to avoid and by exercise of
due diligence has been unable to overcome. Either party rendered unable to
fulfill any of its obligations under this Agreement by reason of an uncontrollable
force shall give written notice within five (5) business days of such fact to the
other party and shall exercise due diligence to remove such inability with all
reasonable dispatch.
7.08. Except as may otherwise be specifically provided herein, this Agreement may be
modified or amended only by a written document executed by both Contractor
and the City and approved as to form by the City Attorney.
17
7.09. The captions used in this Agreement are for convenience only and shall in no
way define, limit or describe the scope or intent of the Agreement or any part
thereof.
7.10. City reserves the right to award similar contracts to multiple contractors to ensure
the City has adequate services.
IN WITNESS WHEREOF, the parties have executed the Agreement on the dates
shown below.
City:
City of Vernon
/"~~~~.
Date:
A~
Bruce V. Ma~kenhorst~~
Acting City Clerk
APPROVED AS TO FORM:
Contractor:
Date: 11/28/05
Date: 11/28/05
18
ORIGINAL
SCOPE OF WORK FOR PAINTING
MGS AND STATION "A"
1.0 General Requirements
1.1 Insurance requirements as set forth by the City of Vernon must be met or exceeded.
1.1.1 Per Mike Birney, Techno Coatings. Inc., exceeds insurance requirements.
1.2 A detailed schedule sball be provided for the following:
1.2.1 Malburg Genemting Station (MGS).
1.2.2 Station "A".
1.3 Allpersonne1 and environmental considerations, so as to perform the work in accordance with
all reguJatoIy requirements.
1.4 Satisfying all of the requirements of the City ofVemon Environmental Health Department's
Lead Based Paint Assessment and Risk Analysis dated Janwuy 19, 2004.
1.4.1 Applies to Station .. A" only.
1.5 Pelform quality control testing and inspections, in accor<lance with Techno Coatings, Inc.,
corporate quality control manual.
1.5.1 Will require a copy be presented to the City ofVemon for review, and retention.
1.6 Provide all product descriptions and .specifications, including all Material Safety Data Sheets
(MSDS).
1.7 Standard one-year warranty for all materials and WO)"kmanAAip.
1.8 All work to be performed as a fixed lump sum contract. unless specifically directed by the
City ofVemon.
1.8.1 Where additional items are identified, the City of Vernon reserves the right to
, have the workpelformed ona Time and Material basis (f&M), or a lump sum
amount
1.8.2 Unless specifically directed by the City of Vernon, there will be no change
orders generated or accepted with any aspects of the work to be perfonned.
1.8.3 Rates for Additional Work, as directed by the COY:
Description of Craft Straight Time Rate Overtime Rate .
Supervision $72.74 $88.91
Foreman $68.73 $83.82
Master Journeyman $66.60 $81.12
Certified Painter $57.35 $69.39
Entry Level J $53.09 $64.01
31U Year tice $32.24 $38.27
4th Year ce $34.89 $41.56
5th Year ce $38.64 $45.66
6th Year . nnn>ntice $42.24 $49.99
7th Year Apprentice $46.34 $54.93
2.0 MGS Painting Scope:
2.1 Color scheme for equipment shall be ANSI No. 61 Gray, overall, with the following
exceptions:
2.1.1
2.1.2
2.1.3
All sprinkler piping sball be painted red.
All bollants sball be painted safety yellow.
All handrails presently painted yellow, will be repainted yellow.
2.1.3.1 Handrails, guardrails and ladders presently hot-dipped galvanized, sball
not be painted. i.e., Combustion TUIbine Control Modules, POeM..
APDCM, Steam Turbine, Raw Water Storage Tank. Treated Water
Storage Tank. Condensate Water Storage Tank, Fuel GasDmin Tank.
etc.
2.1.4 Air operated or motor operated valves, paint to match existing colors.
2.2 All areas to be painted will receive a thorough cleaning (pressure washing), prep, primer and
finish paint coating.
1
2.3 Equipment to be painted:
2.3.1 HRSG's, including all outriggers, pipe supports, silencer boxes and the sound
attenuation panels installed over the Inlet Duct modules.
2.3.1.1 Exception, spring can colors will remain as presently painted.
2.3.2 Stacks and personnel protection.
2.3.3 Deaerator Structure.
2.3.4 Stair towers:
2.3.4.1 Common access between the two HRSG stacks.
2.3.4.2 Individual accesses located at the east end oCthe HRSG's.
2.3.5 Handrails, Guard Rails, and ladders:
2.3.5.1 HRSG's.
2.3.5.2 Stacks.
2.3.5.3 Deaerator.
2.3.5.4 Stair Towers.
2.3.6 Touch-up to existing coatings, includes, but is not limited to, the following
equipment:
. 2.3.6.1 All sttuctura1 steel presently galvanized.
2.3.6.2 All bare piping and valves.
2.3.6.2.1 Shall include all piping 4500F and greater.
2.3.6.3 Pipe supports.
2.3.6.4 Condenser.
2.3.6.5 Air receivers.
2.3.6.6 Gas accumulator.
2.3.6.7 Ammonia tank.
2.3.6.8 Water TreatmentCoutainer.
2.3.6.9 Equipment skids throughout plant
2.3.6.9.1 Touch-up to match existing colors.
2.3.6.9.1.1 Excludes all pumps.
2.3.7 Full finish painting. in addition to items not specifically listed, includes, but is
not limited to, the following equipment:
2.3.7.1 All bare piping not exceeding 4sooF.
2.3.7.1.1 Sprinkler piping south of the GSU Blast Walls, in the areas of
the energized transformers, will not be painted, and will be
considered an exception to scope of identified wort.
2.3.7.2 Condenser.
2.3.7.3 Air Receivers.
2.3.7.4 Gas accumulator.
2.3.7.5 AmmoniaTank.
2.3.7.6 Treated Water Container.
2.3.7.7 Pipe supports.
2.3.7.8 B~.
2.3.8 Pipe labeling:
2.3.8.1 Includes identification of all piping systems, both bare and imu1ated.
2.3.8.2 Includes flow directional arrows.
Note: A complete set of Piping and Instrumentation Diagrams (p&ID's) will
be provided to TechDo Coatings, Inc., or specific direction will be
provided for proper identification of piping systems, through the City
of Vernon OpeIations Department.
Note: Adhesive or wrap around labels, or stenciling is acceptable, depending
on line service temperature and/or coatings.
2
3.0 Station "A" Painting Scope:
3.1 AU areas to be painted will receive a thorough cleaning (pressure washing), prep, primer and
finish paint coating.
3.2 Color scheme to be detennined.
3.3 Per the Techno Coatings, Inc. submittal. System 2 as presented bas been selected, for coating
of Station" A" concrete areas.
3.3.1 Concrete Areas, System 2:
3.3.1.1 Hand scrape and Roto Hydro Blast at 4,SOOpsi. Allloose and
deteriorated paint to be removed to sound surface. Major amounts of
old existing paint will be left. The areas will be feathered back to
existing surfaces. Fill the deficit areas with a textured coating, prime
all areas, and apply a heavy textured coating to blend back to existing
surfaces.
3.3.1.1.1 System will allow all surfaces to be more uniform and
consistent in thickness. Will be bard to detect the old coating,
versus the new coating.
3.3.2 Other items to be painted:
Note: Surfaces will be prepared to a sound surface only.
3.3.2.1 Window Frames and Sash.
3.3.2.1. 1 Broken windows will not be replaced.
3.3.2.2 ~L
3.3.2.3 Stairs.
3.3.2.4 Pipe.
3.3.2.5 Metal Doors and Frames.
3.3.2.6 Exceptions:
3.3.2.6. 1 Doors damaged beyond repair.
3.3.2.6.2 Cooling equipment corroded beyond repair.
A representative of the City ofVemon and a representative of Techno Coatings, Inc. have reviewed the
above work, and both parties are in agreement with the identified Scope. Any additional work directed by
the City of Vernon will result in a Change Order to Techno Coatings, Inc., and may be performed either on
a Time and Materia1basis, per the rates noted in section 1.8.3 above, or a fixed Lump Swn allowance, as
agreed to with the City ofVemon.
p~)
1\ - ~o -0 '5""
Date
-
//-/t:/-a5
Date
3
c:
('
sal
Malbur
Techno Coatin s, Inc.
$135,440.00
$11,200.00
$34,400.00
$21,n4.00
$11,000.00
$4,240.00
$4,240.00
$4,440.00
$4,240.00
$20,945.00
$1,110.00
$0.00
$28,790.00
$11,306.00
$4,000.00
$1,200.00
$298,325.00 I
mcludes all receivers and accumulators
I Total
Exclusions and Options
Exclude all bare piping and valves that exceeds 450 degrees F in temperature.
Spray paint through personnel protection and grating.
Sprin.kler piping south of GSU Blast Wall (energized areas)
Schedule
Six man crew to coat HRSG's in approximately.3-weeks.
(
(
Station "An Paint PropOsal
Techno Coatings, Inc.
System 1:
Hand scrape and Roto Hydro Blast at 4,SOOpsi. All loose and deteriorated $239,919.00
paint to be removed to sound surface. Major amounts of old existing paint
will be left. These areas will be feathered back to existing surfaces. Prime
all surfaces and apply a heavy textured coating to blend back to existing
surfaces. From a distance, will provide uniform look. Up close, areas
feathered back wi.lrbe visible.
Total for SYStem 1 $239.919.00
Svstem2:
Same as System 1, but fill the deficit areas with a textured coat prior to $332,127.00
coating all areas with a heavy textured coating. System wiH allow all
surfaces to be more uniform and consistent in thickness. Will be hard to
detect the old coatino versus the new.
Total for SY~n,"1I 2 $332.127.00
System 3:
Per the written specifications provided by COV (scope of work). System will
look good only from a distance. Defects will be apparent on all the existing
building, with exception of lower front building that will be performed more in
line with System 2 above. System 3 is a combination of Systems 1 and 2
above.
Station "A" buildina as soecified in scooe of wOrk by COV. $209,979.00
Alternate pricing for lower south face of Station" A", ground level to parapet $68,750.00
Oow roof).
Total for System 3 $278.729.00
~~cr c3C-hl'\.O
_ NA....TE.......CI!" . p'aT1to CMIE"'CAL . TANKS . ~D PLANTS .
~A_NIE"AT'ON .. 'NDUST.tAL - Or-.......ORC - ".STOJt4T'O... . HOTIfLa _ Oll'tr.CCS
COiAti"t\tas
CALIF. '-'C.. NO. a..Sf?
NEvADA LIC. "'0. 'a...
1391 ALLEe STREt!T - ANAHI!IM. CALIFORN'A 02808 - (714) a35-1 130 . FAX (71.-) ass-ass?
November 7, 2005
&nail: dsbibley@ci.vemon.ca.us
David L. Shibley
PRoJEcT LABoR GROUP, 1Ne.
2670 Leonis Blvd.
Vernon. CA 90058
Subject:
Painting/Coating ofMaJburg Generating Station
Add Finish Painting of Structural Steel&. Piping
In Areas of Touch Up Allowaneo
Dear Mr. Shibley,
Pursuant to your request for a quOtation on subject work, we have reviewed the areas that WCI'C specified
as touch up on welds and abraded areas only. We woro directed to add finish coat(s) per Carboline's
written specifi~n to the described areas. Please add the following amount to our quotation for this
additional WOI'k requested.
To ADD nNISB COATS TO ALL AREAS AS OUTLINED: .---_.$28,798.00
The following areas are excluded:
1. Pealing Silencers Cans and Assooiamd Pipes
2. O.S.U. Areas in Energized Areas South of North Blast Wall
3. Ammonia Tank and Associated Equipment
4. All pipes and Valves exceeding 4500in temperature
The above quotation represents the areas as discussed in our job walk of 11/4/05. If~is differs from your
understanding, please advise and we can make the necessary adjustments.
Note: Station, A
We still owe you the data sheets for the l000At acrylic that will be applied on the parapet walls, walls
between the two high roofs and the North wall. I will get the data together and have the jnfonnation to
you late today. Does not affect any pricing.
If you require additional infonnation, please call me.
Very tro1y yours,
.~ :mros,1NC.
~//4-~
/~ ~Cbael T. B"
Presidenf/CB
MTBrje
Station A
. page 1 ot 4
.! ,,---
Shibley, Dave
From: JuUa Duliae@technocoatings.com]
Sent: Wednesday, November 02,20054:35 PM
To: Shibley, Dave
Cc: mrb@technocoatings.com; 'DON WATSON'
Subject: Answers to your questions
November 2, 2005
Email: dshibley@ci.vernon.ca.us
David L. Shibley
PROJECf LABOR GROUP, INC.
2670 Loonis Blvd.
Vernon, CA 90058
Subject:
Answers to your questions on our
Painting proposal dated November 1, 2005 for
Station A and the Malburg Generating Station
Dear David,
Per your request, we are E-mailing the answers to your questions. All Product Data Sheets and the
MSDS Sheets will be hand delivered along with the hard copies prior to noon tomorrow or November 3,
2005.
---------------------------------------------------------------
Mike,
As is the obvious below, I have received your proposal and have the following comments:
You have added a generic statement that, "We (Techno) will furnish labor, materials, tools, equipment, insurance
and supelVision to make ready all surfaces and appiy the specified coatings for the total sums in each area of
work as outlined below." It is assumed that this statement is applicable to both bid proposals, i.e., Malburg
Generation Station and Station A. Yes, it is for both Stations.
I-tJJtionlA
1. It is assumed that all taxes, and any mark-ups, are included within the lump sum price provided.
,.,_ have included all taxes and markup in our lump sum price.
2. It is assumed that Techno will meet all insurance requirements as presented. This is a must, and Techno will
not be considered without this requirement being met.
1119f1Mj5
Statton A
. Page 2 of4
Techno Coatings has reviewed your insurance requirements and meet or exceed all the coverage and lmits
requested on the bid package insurance schedule. .
(
3. No mention of requirement that all personnel and environmental considerations, will be performed in
accordance with all regulatory requirements, e.g., Lead Based Paint Assessment and Risk Analysis, dated Jan.
19,2004.
Prior to proceeding with the lead abatement work on Station A or the Malburg Station, Techno Coatings will
submit for review and approval, adetaited site specific work plan meeting all regulatory requirements per
O.S.H.A. and the EPA guidefines.
4. No mention of quality control testing and inspectors, but this will be included within the contract lump sum
agreement.
Techno Coatings is a certified SSPC QP-1, QP-2 and QP-3 contractor. These certifications verify that Techno
Coatings has the qualifications in all areas of this type of work. This Includes employing our own QC NACE
Certified Inspectors and have the testing capabilties and an other control procedures in place to monitor the work.
5. No product descriptions, specifications or MSDS sheets were provided, as requested.
The PAREX products we have based our quotation on are as follows: Please find Product Data Sheets and
MSDS Sheets attached herewith.
A. Primer #310100% AcryHc parex - After cleaning, this product will be used to prime and seal all exterior
wall surfaces.
B. Filler #121 Dry - This product wiD be used to fill and blend voids or defects made by the old removed
paint. It is also a good adhesive to work with old edge of the paint so as to bind and assure adhesion at
the point of juncture from paint to the cement substrate. .
C. Finish DPR Synthetic Finish - After cleaning and A & B above has been appled, the DPR will be
sprayedlshot applied in any number of textures. We have based our quotation on the heavy evenly
applied course texture. This will hide most of the defects that may exist better than the other textures.
D. Metal pipe, window sash and dOors in good wOrking order. Primer ICI Devoe Rustguard 4150 Low VOC
Shop Coat Primer. Finish ICI Devoe Devflex 4020 Waterborne Exterior Finish.
6. You were requested to provide a schedule for supervision and craft cost per hour, for any additional work to be
performed on a Time and Material basis. Nothing was provided.
Time & Material Rate Sheets.
ST
1. SUpelVision................................................ ......... 72.74
2. Foreman........ .......... .... ....... ................ ..... ..... ...... 68:73
3. Master Journeyman............................................. 66.60
4. Certified Painter...... ....................... ...................... 57.35
5. Entry Level Journeyman....................................... 53.09
6. Apprentice Rates
3rd.... ..;.............. ............... ........... ....... ........... 32.24
4th ......... ........... ................... ..... ......... ........... 34.89
5th.. ......... ................. ................ ......... ........... 38.64
6th .................... ............ .......... ...... ................ 42.24
7th.. ........... ........ ....... ...... ............ .................. 46.34
OT
88.91
83.82
81.12
69.39
64.01
38.27
41.56
45.66
49.99
54.93
Excluded Items
Please Note: As stated on the job walk, we have not included fixing of broken doors, windows, painting of the old
cooling equipment and associated equipment on the lower roof between the two high roofs, strip removal of paint
from metal handrails, windows or any other surfaces. All areas that may have energized equipment are to be
deenergized while painting/coating next to same. We have not included painting of interior surfaces. AU our work
wiD be considered exterior areas of work. We have not included painting of all stacks on the North Roof.
1119/2005
Station A .
. Page 3 01"4
Note: We will issue a standard 1 year warranty that has all exclusions and inclusions of the paint manufacturer.
-
Malburg Generating Station
1. It is assumed that all taxes, and any mark-ups, are included within the lump sum price provided.
(Same as Station A, answer #1)
2. As you did not go into any detail with regards to cleaning, prep, priming and finish coatings, it is assumed that
this will be performed as outlined. It is preferred that you provide a written description of methods and
materials to be employed.
(Answers for questions # 2 and 6) - Surface Preparation and Specified Coatings to be applied.
All surfaces that are specified to be painted will receive a High Pressure Water Wash to remove dirt and chalk
residue.
HRSG'S and Stacks: All rusted surfaces will receive a Hand and Power tool clean surface preparation followed
up with a one coat primer application of Carboline 2977 (spot prime only). Application of one full finish coat of
Carbotine Thermafine 4900 High Heat, color selected by owner. MSDS and Data Sheets enclosed.
Handrail and Structural Steel: All rusted surfaces will receive a Hand and Power tooJ clean surface preparation
followed up with a one coat primer application of Carboline 890 Epoxy (spot prime only). Application of one full
coat of Carbofine 3359DTM AeryUc. MSDS and Data sheets enclosed.
Techno Coatings have successfully applied the above..specified Carbofine Products on at least a dozen Power
Plants because of the following:
. Low VOC's Environmentally Friendly
. User Friendly
. Low Odor
. . Easy to touch-up for down the line maintenance
. Dry Fall consistency for overspray eDmination
Inlet Duct Sound Continuation: High Pressure Water Wash, appHcation of one full primer coat of Carboline
Rustbond and one full finish coat of Carbofine 3359DTM Acryfic.
Price per unit $ 5,600 Total-bid Price for Two units: $ 11,200
If references are needed for past Power Plants, we can provide.
3. It is assumed that Techno will meet all insurance requirements as presented. This is a must, and Techno will
not be considered without this requirement being met.
(Same as Station A, answer #2)
4. No mention of requirement that all personnel and environmental considerations, will be performed in
accordance with all regulatory requirements.
Techno Coatings will submit for review and approval, a detailed site specific work plan meeting all regulatory
requirements per O.S.HA. and the EPA guidelines.
5. No mention of quality control testing and inspectors, but this will be included within the contract lump sum
agreement.
(Same as Station A, answer #4)
6. No product descriptions, specifications or MSDS sheets were provided, as requested.
... Malburg Generating Station answer #2)
7. No indication that the Treated Water Container was included within the lump sum price.
f. ,200.00
8. You were requested to provide a schedule for supervision and craft cost per hour, for any additional work to be
performed on a Time and Material basis. Nothing was provided.
1 t19f1lJ05
(
Station A,
> Page4of4
, .
(Same as Station A, answer #6)
9. You have made mention of structural steel and piping touch-up, but no mention was made of the condenser.
The condenser is part ofthis work scope.
$1,110
Your proposal, as presented, does not provide all information required, nor enough detail to perform a complete
and comprehensive review. As we had discussed, there will be no change orders associated with this contract,
unless specifically requested by the City of Vernon (COV).
111912005
/
. Page 1 of4
c
Shibley, Dave
From: JuRa Duliae@technocoatings.com]
Sent: Tuesday, November 01, 2005 4:58 PM
To: Shibley, Dave
Cc: mrb@technocoatings.com
Subject: Malburg Generating Station and Old Vernon Diesel Plant
November I, 2005
Email: dshibley@ci.vemon.ca.us
David L. Shibley
PROJECf LABOR GROUP, INC.
2670 Leonis Blvd.
Vemon, CA 90058
Subject:
Painting/Coating of Malburg Generating Station and
Remedial Lead Abatement and Coating of Station A (Old Vemon Diesel Plant)
Dear Mr. Shibley,
Reference is made to your request for an itemized quotation as outlined under the Scope of Work: for
painting of the MGS and Station A per our job walk of October 28, 2005 regarding the subject project.
We will furnish labor, material, tools, equipment, insurance and supervision to make ready all surfaces
and apply the specified coatings for the total sums in each area of work as outlined below.
M.4I.BURG GENERATING STATION
HRGSUNITS
Stacks
Total for One $ 67,720.00 X2 = $ 135,440.00
Total for One $ 17,200.00 X2 = $ 34,400.00
LABOR
Handrails
HRGS Rails
$ 2,120.00 X2 = $ 4,240.00
111912005
. Page20f4
(
Stair Tower Rails
Stack Rails
Dearator Rails
$ 2,120.00
$ 2,120.00
$ 4,440.00
$ 5,500.00
$ 21,774.00
$ 40.00
X2 = $ 4,240.00
X2 = $ 4,240.00
Xl = $ 4,440.00
X2 = $ 11,000.00
Xl = $ 21,774.00
Xloo = $ 4,000.00
Subtotal $ 223,774.00
Stair Tower
Dearator Rail
Bollards
PROJEer LABOR GROUP, INC.
November 1, 2005.
Page two of three
Add allowances to following:
Pipe Labels 2 men one week at a total cost of$4,640.oo and $10,000 Lin. Ft. of pipe with a label
every 30 at a cost of $20.00 per label is $6,666.00. Total estimated cost for pipe label application is
$11,306.00. Unit price will be used, should Techno Coatings go over in time, or deduction for under
cost. Structural steel and piping touch up allowance is 240 MIl including equipment or $20,945.00.
Again, if we run under, we will reduce the cost or over increase. However, we feel we have allowed
more than enough for this work.
(-
",
Exclude all bare piping and valves that exceeds 450 degrees in Temp.
Techno Coatings will spray paint through personal protection and grating.
Exclude all valves coming out of insulated pipe.
A six man crew should finish coat the HRSG unit in 3 weeks.
STATION A - (Old Vernon Diesel Plant)
As you are aware, the old Vernon Diesel Plant is anyone's guess as to how much of the old existing
paint can be removed off of this building without damaging the building beyond compare. Techno
Coatings with over 31 years experience and myself with over 40 years of experience in this type of work
has a pretty good guess. I know what was put on this building in the late 1970's. The product was
called Dum-Dum and it was not meant to be taken off after it applied. It was a fix-all cover up of all
crack and any other bad defects that may exist. However, as you can see it has become dry, brittle, old
and is peeling; not a forever fix as originally sold. It is a thick product and will be very hard to remove
where the Dum-Dum is still tight to the existing substrate.
With this in mind, I have provided 3 alternate Bids that have different approaches to solve the coating
problem of the Vernon Diesel Building.
1. System 1 - Hand scrape and Roto Hydro Blast with 4500 PSI all the loose and deteriorated paint
to a tight sound surface. Note: Major amounts of the old existing paint will be left. These areas
will be feathered back to existing sutfaces. We will then prime all surfaces and apply a heavy
textured coating to blend in the deficit areas as best as possible. With this system, from some
distance, it will look unifonn. However, up close you will see the areas that have been removed
aIMlfeathered back to the existing surfaces.
111912000
. Page 3 of4
TOTAL SYSTEM 1:
$239,919.00
(
PROJECT LABOR GROUP, INC.
November 1, 2005
Page three of three
2. System 2 - Same as System 1 but we will fill the deficit areas with a textured filler coat prior to
coating over all areas with a heavy textured coating. This system will allow all surfaces to be
more uniform and consistent in thickness. It will be hard to see where the old coating was versus
the new. Only the trained eye will be able to see the difference. However, you will never cover
all the old defects.
TOTAL SYSTEM 2:
$332,127.00
(
3. System 3 - This system is per the written specifications. We want to note that this system will
look good from a distance only. If you get up close to the defects, they will be very apparent on
all the existing buildings except the lower front building that will be performed more in the line of
our System 2. System 3 is a combination of our System 1 and 2.
1) Provide an alternate pricing for complete finishing of south face of Station A, from ground
level to parapet wall Qow roof).
$68,750.00
2) Remainder of Station A Building as specified and explained above
TOTAL SYSTEM 3:
$209,979.00
$278,729.00
Please Note: We have based our quotation on working regular hours 7:00 a.m. to 4:30 p.m. Monday
through Friday. Terms are progress billings Net 30-days. 100.10 on Mobilization.
The three systems specified can work and will make the building look good in three different ways for
the amount of money you have budgeted. There are other alternate systems that we can come up with
that are less expensive or can cost much more, it is all ajudgment call. If you let Techno work with
your architect, we can come up with a system that will work for all involved while meeting the given
budget.
We want to make it understood that we can or will split these two projects. The Malburg project is a
clear cut project; however the A Plant or Old Vernon Diesel could go any way you want to put it
together. We feel we are best adapted to both jobs however we need to have a sit down meeting with a
clear understanding of what we are going to do on the A plan.
Thank you for the opportunity of submitting this proposal and we look forward to working with you in
the near future. Should you have any questions, I can be reached at 714/635-1130.
Very truly yours,
TECHNO COATINGS, INC.
Michael T. Birney
President/CEO
1 119/2005
. Page4of4
C~ MTBlje
('
11/9/2005
EXHIBIT B
Form Chan2e Order
CHANGE
Contract Number:
Change Num~r:
The requirements of the above designated Agreement are changed as follows:
City and Contractor agree that Contractor's compensation shall be adjusted as follows:
City and Contractor agree that Contractor's schedule shall be adjusted as follows;
This adjustment covers the entire compensation for the Change set forth above and includes, but
is not limited to compensation for all engineering, material, equipment, subcontracts, labor,
overhead, profit, changes in scheduling and delays resulting, directly or indirectly, from the
Change, as further detailed in the Agreement.
. Contractor (Techno Coatings, Inc.)
City (City ofVemon, California)
By
By
Date
Date
B-1
. ',.
INSTRUCTIONS TO CONTRACTOR
Contract Number:
Instruction to Contractor Number:
Date:
Specific Instructions to Contractor:
In accordance with the Terms and Conditions of the Agreement, the City classifies these
instructions as:
Supplementary instructions, not involving a Change
(Should these instructions be, in the opinion of Contractor, a "Change", written notice thereof
must be given to City within 10 days of the receipt of these instructions. If such written notice is
given, Contractor shall not commence with the work so ordered until written agreement is
reached on the classification of these instructions and on the resulting adjustment in contract
compensatio~ if any.) In the event that City and Contractor fail to agree on the classification of
these instructions or resulting adjustment in contract compensatio~ if any, refer to the Changes
Section of the Agreement.
A Change
(Contractor shall, within 10 days of the receipt of these instructions, furnish City a statement of
its proposal for adjustment in contract compensation occasioned hereby. Contractor shall not
commence with the work so ordered until written agreement is reached on the resulting
adjustment in contract compensatio~ if any.) In the event that City and Contractor fail to agree
on the classification of these instructions or resulting adjustments in contract compensation, if
any, refer to the Changes Sections of the Agreement.
Date
City Representative
Please acknowledge receipt of this instruction by returning one copy signed in the space
provided below. Contractor's signature hereon does not indicate his acceptance of the
classification assigned hereto by City.
Date
Contractor Representative
B-2