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Resolution No. 2010-003RESOLUTION NO. 2010-03 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 COX INDUSTRIAL SERVICES, INC. FOR THE REMOVAL, REPAIR AND REINSTALLATION OF PUMP EQUIPMENT AT THE DOWNEY UNDERPASS STORMWATER PUMPING STATION WHEREAS, the City of Vernon ("City") requires the services of an independent contractor to remove, repair and reinstall the necessary pump equipment (the "Work") at Pump No. 2 at the Downey Underpass Stormwater Pumping Station; and WHEREAS, Cox Industrial Services, Inc. ("Cox Industrial") is qualified and capable of furnishing the labor, materials and expertise necessary to perform the Work; and WHEREAS, by a memorandum dated December 16, 2009., the Director of Community Services & Water has recommended that the City enter into a services agreement with Cox Industrial setting forth the terms and conditions under which Cox Industrial will perform the Work (the "Agreement"); and WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (b)(1) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to enter into the Agreement with Cox Industrial to remove, repair and reinstall Pump No. 2 at the Downey Underpass Stormwater Pumping Station. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon does hereby find and determine that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Agreement with Cox Industrial, a copy of which is attached hereto as Exhibit A and incorporated by reference. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for, and on behalf of, the City of.Vernon and the City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby authorizes the City Administrator, or his designee, to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized. SECTION 5: The City Council of the City of Vernon hereby directs the City Clerk, or her designee, to send a fully executed Agreement to: Cox Industrial Services, Inc. Attention: Jim Cox 1320 E. Hill Street Signal Hill, CA 90755 sZ SECTION 6: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 4th day of January, 2010. TTEST: Altx�l MANUELA GIRON,'City Clerk Name: iilario Gonzales Title: Mayor -3- STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2010-03, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Monday, January 4, 2010, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of January, 2010, at Vernon, California. MANUELA GIRON, City Clerk (SEAL) MAN EXHIBIT A 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 day of , in the City of Vernon, County of Los Angeles, California BY AND BETWEEN CITY OF VERNON, a California charter city and municipal corporation, ("City") 4305 Santa Fe Avenue Vernon, California 90058 AND COX INDUSTRIAL SERVICES, INC., a California corporation, ("Contractor") 1320 East Hill Street Signal Hill, California 90755 RECITALS WHEREAS, the City has determined to retain the services of an independent contractor to remove, repair and reinstall the necessary pump equipment at Pump No. 2 (the "Work"), located at the Downey Underpass Stormwater Pumping Station; and WHEREAS, Contractor has prepared a proposal dated June 17, 2009 for the Work (the "Proposal"), a copy of which is attached hereto as Exhibit A and incorporated by this reference; and WHEREAS, Contractor represents that it is qualified and capable of furnishing the labor, materials and expertise necessary to perform the Work 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 Contractor's cost proposal is acceptable to the City; and WHEREAS, the City desires to enter into an agreement with Contractor to perform the Work on a contract basis as defined in the terms and conditions set forth below. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: Page 1 of 22 SECTION 1. TERM OF CONTRACT 1.01. This Agreement shall become effective on (the "Effective Date"), and shall continue in effect for a period of one (1) year or until terminated as provided in this Agreement. City shall have the option to extend the Agreement in one (1) year increments at its sole discretion by giving written notice to Contractor thirty (30) days prior to expiration of 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 Cox Industrial Services, 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. "General Provisions" or "General Conditions" shall mean the General Provisions as set forth in this Agreement. F. "Premises" shall mean the physical premises under City's control or ownership to which Contractor and its agents and employees are given access in the performance of this Agreement. G. "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 Page 2 of 22 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. H. "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. I. "Work" shall mean the work performed by Contractor and required to be performed from time to time by City under this Agreement. SECTION 3. WORK TO BE PERFORMED BY CONTRACTOR Specific Work 3.01. Contractor agrees to repair one Fairbanks Morse Vertical Column Pump (S/N 3915226) for Vernon Underpass Pump No. 2 at the Downey Underpass Stormwater Pumping Station in a timely manner. Contractor's Services shall include, but will not be limited to, disassembly, inspection, repair of impeller, bowl, bearing housing, bushings, shafting, packing, cleaning, reinstallation and start-up, but will not include any motor repair work. The Contractor's Services are more specifically detailed in the Proposal. 3.02. Contractor shall be responsible for traffic control on the Work site when necessary and shall take all precautions to ensure the safety of pedestrians, vehicular traffic, City staff and Contractor's personnel. Page 3 of 22 3.03. Contractor shall be responsible for the professional quality, technical accuracy, and coordination of work performed under this Agreement and without additional Compensation shall correct, revise or otherwise remedy any defect or deficiency in Work, as determined solely by City, identified as complete by Contractor and delivered to City. Change in The Scope of Work 3.04. City may at any time, by a written change order executed by the City Administrator or his designee, make changes in the Scope of Work by increasing, reducing, or deviating from the requirements of the Scope of Work. A written change order form is attached as Exhibit B and is incorporated herein by this reference. 3.05. No change is authorized unless signed by the City Administrator or his designee. Changes made by Contractor without written authorization shall be made at the sole risk of Contractor, there being no recourse against City. Timing of The Work 3.06. Contractor's Work shall commence upon the Effective Date and shall end after a period of one (1) year, unless this Agreement is otherwise terminated according to Section 6 of this Agreement or extended according to the conditions and terms set forth in this Agreement. 3.07. Time is of the essence for all Work contemplated by this Agreement. Contractor shall start performing the Work under this Agreement only after notification from City. Method of Performing The Work 3.08. Contractor shall determine and is responsible for the method, details, and means of performing the above -described Services. Status of Contractor 3.09. Contractor enters into this Agreement as, and shall remain throughout the term of this Agreement, a wholly 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, 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, Page 4 of 22 and licenses for itself and for its employees and subcontractors. Contractor shall have complete and sole control over its employees, the details of the Work and methods by which the Work are accomplished, it being understood that City is interested only in the results to be obtained by Contractor. 3.10. Contractor shall not, at any time or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. Contractor has no authority to enter into contracts or agreements on behalf of City. This Agreement does not create a partnership or joint venture between the parties. Payment of Taxes 3.11. 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 Work 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. 3.12. 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 Work performed hereunder for federal or state tax purposes. Contractor shall be responsible to pay taxes mandated by law. SECTION 4. COMPENSATION 4.01. Inconsideration for the Work to be performed by Contractor, described in Section 3 of this Agreement, City agrees to pay Contractor on a labor, materials and equipment basis, the cost for specified tasks and equipment (the "Compensation") specified in the Proposal. Entire Compensation 4.02. The Compensation is full and complete compensation, and constitutes the entire compensation due Contractor for the Work and any and all of Contractor's obligations hereunder, regardless of difficulty, unforeseen circumstances, hours worked or equipment, materials or personnel required. The Compensation includes without limitation compensation for any and all applicable taxes, customs duties, fees, overhead, profit, rentals, services, materials, equipment, tools, labor, travel time to and from the Premises and all other direct and indirect costs incurred or to be incurred by Contractor hereunder. The Compensation 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 Compensation shall only be Page 5 of 22 adjusted by formal, written change order or amendment to this Agreement. Payment of Compensation 4.03. For Work performed under Section 3 of this Agreement, City agrees to pay Contractor the Compensation upon completion of Work and within thirty (30) days of acceptance and approval of an invoice prepared in accordance with City requirements. 4.04. Contractor shall be entitled to receive monthly payments. Contractor shall submit to City a monthly invoice and statement of Work, 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 of acceptance and approval of the invoice received from Contractor. 4.05 Close Out. Prior to final payment, Contractor will be required to complete a close-out form certifying that all work has been completed and releasing City (and any other party owning property with respect to which Contractor performed services hereunder) from all further obligations and Liabilities. 4.06. Contractor shall be responsible for paying any subcontractors used in the performance of this Agreement. Subcontractors shall not bill the City directly. Expenses 4.07. 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 4.08. 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 3.04 and 3.05 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 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 Page 6 of 22 standards & details for all Work performed. 5.02. Contractor is responsible for damage resulting from performing repair and clean- up of the Work site. Warranty 5.03. Contractor warrants to City, for one (1) year from the date of any repairs, that the repairs shall be free from defects in material and workmanship. Contractor shall be liable for the replacement and installation of any parts that fail through a defect in material or workmanship at no charge to City during such warranty period. 5.04. City shall notify Contractor of general locations requiring repair and a general description of the field conditions at repair locations. City makes no guarantee of the total quantity of Work to be provided. Notification of properties whose service may be interrupted shall be the responsibility of City. 5.05. City shall not be responsible for the accuracy or completeness of information or data shown on the City's water, sewer, or storm drain system base maps or any other utility information. Contractor shall have full responsibility for reviewing and checking all such information and data, for calling Underground Service Alert, for locating all underground utilities, for coordinating the Work with owners of such underground utilities during repairs, for the safety and protection thereof, and for repairing any damage thereto resulting from the Work, the cost of which shall be considered as having been included in the Compensation. Contractor shall take all possible precautions for the protection of unforeseen utility lines, to provide for uninterrupted service, and to provide such special protection as may be necessary. All paved areas, including curb, gutter, and sidewalk, cut or damaged during performance of the Work, shall be replaced with similar material of equal thickness to match the existing adjacent undisturbed areas. 5.06. Contractor shall perform the Work under this Agreement on City's Premises during regular business hours or as directed by City. Insurance 5.07. Contractor and its subcontractor(s), if any, shall, prior to commencement of any Work and for the duration of this Agreement, obtain and maintain in full force and effect at its own expense, those minimum levels of insurance coverage as set forth below. Prior to commencing Work, Contractor shall provide the City's Risk Manager with proof of insurance providing and maintaining the coverages and endorsements set forth below. 5.08. All policies required under this Agreement shall contain endorsements (1) Page 7 of 22 providing that the policies cannot be canceled or materially reduced in coverage without giving at least thirty (30) days prior written notice to City; (2) specifically stating that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement; (3) providing for waiver of subrogation; and (4) providing City all the rights and privileges of an additional insured. 5.09. Contractor shall cause its insurers to issue, including but not limited to, Certificates of Insurance and policy endorsements required under this Agreement, or, upon request, certified copies of the insurance policies evidencing that the coverages and policy endorsements required under this Agreement, are maintained in force. 5.10. Contractor 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 against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by Contractors, 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, covering any vehicle utilized by Contractor in performing the Work required under this Agreement. 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. 5.11. The policy or policies required by this Agreement shall be issued by an insurer Page 8 of 22 admitted in the State of California and with a rating of at least a B+; VII in the latest edition of Best's Insurance Guide. 5.12. Contractor shall require each of its subcontractor(s), if any, to maintain insurance coverage that meets all of the requirements of this Agreement. 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 Work performed under this Agreement, 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. 5.13 Contractor agrees that if it does not keep the aforesaid insurance in full force and effect City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost. City may take out the necessary insurance and pay, at Contractor's expense, the premium thereon. 5.14 Any deductibles or self -insured retentions must be declared to approved by City. At the option of City, Contractor shall either reduce or eliminate the deductibles or self -insured retentions with respect to City or procure a bond guaranteeing payment of losses and expenses. Indemnification 5.15. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold harmless City and its elected officials, officers, agents, employees, and volunteers from any and all claims, suits, actions, demands, damages, liabilities, expenses, judgments, settlements, penalties, losses, fines, and all costs and expenses incurred in connection therewith, including, but not limited to, reasonable attorney's fees and all costs of defense, arising out of, resulting from, connected with or attributable to the intentional, reckless, negligent, or otherwise wrongful acts, errors, or omissions of Contractor or its employees or agents in the performance of this Agreement. The terms of this indemnity shall survive the termination of this Agreement and shall be given the broadest possible interpretation. 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. Indemnity Process 5.16. 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 Page 9 of 22 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. Representations 5.17 Contractor represents that it has read and understands the Agreement. 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. 5.18 Contractor represents that it employs or has available for employment in sufficient numbers, at its own expense, all unskilled, skilled, administrative, supervisory, professional and managerial or other personnel required to perform the Work as required by this Agreement and at all times shall be responsible for the Work of such personnel. 5.19. Contractor represents that it is experienced in performing, and has the qualifications and skills necessary, to perform the Work 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 Work 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. 5.20. Contractor declares and states that is has complied with and shall continue to comply with all federal, state and local laws regarding business permits and licenses that may be required to carry out the Work to be performed under this Agreement. Page 10 of 22 No Assignment or Subcontracting 5.21. This Agreement may not be assigned in whole or in part'by Contractor, nor may Contractor delegate or subcontract its duties 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 and have no effect. Consent by City shall not relieve Contractor of responsibility for performance of Contractor's obligations hereunder. Contractor shall be fully responsible to City for the performance of any and all subcontractors. City may assign all or any part of this Agreement at any time effective immediately upon written notification to Contractor. Designated Representative 5.22. At all times while Work is being performed on the Premises each Party shall be represented by a designated representative, who shall serve as principal liaison between the Parties. Contractor's designated representative shall be available by telephone or in person to City's designated representative during all hours that Work is performed on the Premises by Contractor. Each Party may notify the other in writing of the identity of such persons from time to time. Work Injury 5.23. 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, may be made available to Contractor's employees in emergency cases which are the direct result of accidents occurring on the Premises. Records, Inspection and Audit 5.24. 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. Page 11 of 22 Corporate Conduct 5.25. 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. Treatment of Confidential Information 5.26. For ten (10) years after the effective date of this Agreement, Contractor shall (1) refrain from using any Confidential Information except in connection with the Work; (2) refrain from disclosing Confidential Information to any third party other than to employees of Contractor who require it in performance of the Work and 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 Confidential Information substantially the same as those contained in this Agreement. 5.27. Contractor shall take reasonable precautions to safeguard any documents containing Confidential 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. 5.28. 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. 5.29. 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 Page 12 of 22 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. 5.30. All reports, information, data and exhibits prepared or assembled by Contractor in connection with the performance of the Work 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. 5.31. 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 5.32. Contractor shall comply with all Applicable Laws, including, but not limited to, 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. "Applicable Laws" shall mean any and all laws, regulations, rules, orders, directives, judgments, decrees, permits, approvals or other applicable requirements of any governmental entity or agency having jurisdiction that are applicable to any aspect of this Agreement that are in force on the Effective Date and as they may be enacted, issued or amended during the term of this Agreement. 5.33. 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. Progress Reports 5.34. Contractor shall meet with City staff, upon City's request, or as needed, in order to provide reports or information concerning the Work being performed by Contractor under this Agreement. Contractor's License Classification 5.35. Contractor shall possess a valid Class A General Engineering Contractor's license for the duration of this Agreement. Page 13 of 22 SECTION 6. TERMINATION OF AGREEMENT 6.01. Unless otherwise terminated as provided in this Section or unless otherwise extended according to the terms and conditions set forth in this Agreement, this Agreement will continue in effect for a period of one (1) year after the Effective Date of 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 the Work 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 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 Compensation. Termination on Occurrence of Stated Events 6.04. This Agreement shall 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 shall take effect immediately upon the date specified in Page 14 of 22 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 Work 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 whether of the same or other covenant or condition; 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. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 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 - Cox Industrial Services, Inc. Attn: Jim Cox 1320 E. Hill Street. Signal Hill, CA 90755 Fax: 562-490-2620 Telephone: 562-490-2606 City - City of Vernon, California Attn: City Administrator 4305 Santa Fe Avenue Vernon, CA 90058 Fax: Telephone Page 15 of 22 323-826-1408 323-583-8811 ext 561 Entire Agreement of the Parties 7.02. This Agreement supersedes any and all agreements, either oral or written, between the parties with respect to the performance of the Work 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 performance of the Work. 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. 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 an arbitrator or 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 Page 16 of 22 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 decision(s), the Arbitrators shall determine the rights and obligations of the parties according to the substantive and procedural domestic 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. Force Majeure 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 Page 17 of 22 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. Modification 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. Contractor expressly waives all claims for compensation based upon quantum meruit, implied contract or oral contract. Headings and Captions 7.09. The headings and 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. Reservation of Rights 7.10. City reserves the right to award similar contracts to multiple contractors to ensure the City has adequate services. Authority to Execute this Agreement 7.11. The person or persons executing this Agreement on behalf of Contractor warrants and represents that he or she has the authority to execute this Agreement on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder. IN WITNESS WHEREOF, the parties have executed the Agreement on the dates shown below. Executed at City: City of Vernon Name: Hilario Gonzales, Mayor , California, on Page 18 of 22 Date: ATTEST: APPROVED AS TO FORM: Manuela Giron, City Clerk Laurence S. Wiener, City Attorney Contractor: Cox Industrial Services, Inc. Name: Title: Date: Name: Title: Date: Page 19 of 22 EXHIBIT A PROPOSAL Page 20 of 22 Nj fl rA 'OHO � i pCp� � m � +S CK OQ cr 0 rti 6 c. 0 cr o ...... . .......... Jq � j ;,D n qm Sao tv 8 on x tj %A CON 0. ZO/ZO 39vd lAN3S ividisnaNI XOO 909irl06vz95T 91:90 600Z/LT/90 EXHIBIT B FORM CHANGE ORDER Page 21 of 22 CITY OF VERNON COMMUNITY SERVICES & WATER DEPARTMENT CONTRACT CHANGE ORDER NO. SUPPLEMENT NO. PROJECT: TO: REQUESTED BY: City of Vernon SHEET OF SHEETS P.O. NO. CONTRACTOR You are hereby directed to make the herein described changes to the plans and specifications or do the following described work not previously included in the plans and specifications of this contract. Except as specifically modified herein, all terms and conditions of the original contract remain in full force and effect, and apply to the additional work as if said work was originally included in the contract_ Contract Amount (Base Bid) $ ....... .. . ... ... ... .... ..... ... ... ... .. Amount of This Change Order $ ........... .. ... ... .... ... ........ ... Amount of Previous Change Orders .. .. .. .. ... ... .... ........ ......... ... $ Total Change Orders $ Modified Contract Amount $ . .................. ............. .. ....... By reason of this change order the time of completion will be adjusted as follows: Approved: Date: Director of Community Services & Water Attest: Date: Manuela Giron, City Clerk We, the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all labor, equipment and materials, including overhead, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment therefore the prices shown above. Accepted Date: Contractor: By: Title: Rev. U6/08 'M►t OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 January 13, 2010 Cox Industrial Services, Inc.. Attn: Jim Cox 1320 E. Hill Street Signal Hill, CA 90755 RE: Services Agreement — Downey Underpass Stormwater Pumping Station The insurance requirements have been met. Transmitted herewith is a fully executed agreement as referenced above, approved by City Council on January 4, 2010, through Resolution No. 2010-03. If you have any questions regarding this matter, please call Mr. Kevin Wilson at 323/583-8811 ext. 245. Thank you. Sincerely, Nelly iron City Clerk Enclosures NG:dj c: S. Kevin Wilson Purchasing Department Resolution No. 2010-03 Agreement File No. 10-004 Eaccfusivefy Industriaf SERVICES AGREEMENT This AGREEMENT ("Agreement") is made, entered into and executed in duplicate originals, either copy of h may be c nsidered and used as the original hereof for all purposes, as of this "day of a /00 , in the City of Vernon, County of Los Angeles, California BY AND BETWEEN CITY OF VERNON, a California charter city and municipal corporation, ("City") 4305 Santa Fe Avenue Vernon, California 90058 AND COX INDUSTRIAL SERVICES, INC., a California corporation, ("Contractor") 1320 East Hill Street Signal Hill, California 90755 RECITALS WHEREAS, the City has determined to retain the services of an independent contractor to remove, repair and reinstall the necessary pump equipment at Pump No. 2 (the "Work"), located at the Downey Underpass Stormwater Pumping Station; and WHEREAS, Contractor has prepared a proposal dated June 17, 2009 for the Work (the "Proposal"), a copy of which is attached hereto as Exhibit A and incorporated by this reference; and WHEREAS, Contractor represents that it is qualified and capable of furnishing the labor, materials and expertise necessary to perform the Work 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 Contractor's cost proposal is acceptable to the City; and WHEREAS, the City desires to enter into an agreement with Contractor to perform the Work on a contract basis as defined in the terms and conditions set forth below. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: Page 1 of 22 SECTION 1. TERM OF CONTRACT 1.01. This Agreement shall become effective on (the "Effective Date"), and shall continue in effect for a period of one (1) year or until terminated as provided in this Agreement. City shall have the option to extend the Agreement in one (1) year increments at its sole discretion by giving written notice to Contractor thirty (30) days prior to expiration of 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 Cox Industrial Services, 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. "General Provisions" or "General Conditions" shall mean the General Provisions as set forth in this Agreement. F. "Premises" shall mean the physical premises under City's control or ownership to which Contractor and its agents and employees are given access in the performance of this Agreement. G. "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 Page 2 of 22 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. H. "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. I. "Work" shall mean the work performed by Contractor and required to be performed from time to time by City under this Agreement. SECTION 3. WORK TO BE PERFORMED BY CONTRACTOR Specific Work 3.01. Contractor agrees to repair one Fairbanks Morse Vertical Column Pump (S/N 3915226) for Vernon Underpass Pump No. 2 at the Downey Underpass Stormwater Pumping Station in a timely manner. Contractor's Services shall include, but will not be limited to, disassembly, inspection, repair of impeller, bowl, bearing housing, bushings, shafting, packing, cleaning, reinstallation and start-up, but will not include any motor repair work. The Contractor's Services are more specifically detailed in the Proposal. 3.02. Contractor shall be responsible for traffic control on the Work site when necessary and shall take all precautions to ensure the safety of pedestrians, vehicular traffic, City staff and Contractor's personnel. Page 3 of 22 3.03. Contractor shall be responsible for the professional quality, technical accuracy, and coordination of work performed under this Agreement and without additional Compensation shall correct, revise or otherwise remedy any defect or deficiency in Work, as determined solely by City, identified as complete by Contractor and delivered to City. Change in The Scope of Work 3.04. City may at any time, by a written change order executed by the City Administrator or his designee, make changes in the Scope of Work by increasing, reducing, or deviating from the requirements of the Scope of Work. A written change order form is attached as Exhibit B and is incorporated herein by this reference. 3.05. No change is authorized unless signed by the City Administrator or his designee. Changes made by Contractor without written authorization shall be made at the sole risk of Contractor, there being no recourse against City. Timing of The Work 3.06. Contractor's Work shall commence upon the Effective Date and shall end after a period of one (1) year, unless this Agreement is otherwise terminated according to Section 6 of this Agreement or extended according to the conditions and terms set forth in this Agreement. 3.07. Time is of the essence for all Work contemplated by this Agreement. Contractor shall start performing the Work under this Agreement only after notification from City. Method of Performing The Work 3.08. Contractor shall determine and is responsible for the method, details, and means of performing the above -described Services. Status of Contractor 3.09. Contractor enters into this Agreement as, and shall remain throughout the term of this Agreement, a wholly 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, 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, Page 4 of 22 and licenses for itself and for its employees and subcontractors. Contractor shall have complete and sole control over its employees, the details of the Work and methods by which the Work are accomplished, it being understood that City is interested only in the results to be obtained by Contractor. 3.10. Contractor shall not, at any time or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. Contractor has no authority to enter into contracts or agreements on behalf of City. This Agreement does not create a partnership or joint venture between the parties. Payment of Taxes 3.11. 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 Work 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. 3.12. 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 Work performed hereunder for federal or state tax purposes. Contractor shall be responsible to pay taxes mandated by law. SECTION 4. COMPENSATION 4.01. In consideration for the Work to be performed by Contractor, described in Section 3 of this Agreement, City agrees to pay Contractor on a labor, materials and equipment basis, the cost for specified tasks and equipment (the "Compensation") specified in the Proposal. Entire Compensation 4.02. The Compensation is full and complete compensation, and constitutes the entire compensation due Contractor for the Work and any and all of Contractor's obligations hereunder, regardless of difficulty, unforeseen circumstances, hours worked or equipment, materials or personnel required. The Compensation includes without limitation compensation for any and all applicable taxes, customs duties, fees, overhead, profit, rentals, services, materials, equipment, tools, labor, travel time to and from the Premises and all other direct and indirect costs incurred or to be incurred by Contractor hereunder. The Compensation 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 Compensation shall only be Page 5 of 22 adjusted by formal, written change order or amendment to this Agreement. Payment of Compensation 4.03. For Work performed under Section 3 of this Agreement, City agrees to pay Contractor the Compensation upon completion of Work and within thirty (30) days of acceptance and approval of an invoice prepared in accordance with City requirements. 4.04. Contractor shall be entitled to receive monthly payments. Contractor shall submit to City a monthly invoice and statement of Work, prepared in accordance with City requirements, by the fifteenth (15t") of each month, for the prior calendar month's completed Work. City will make payments to Contractor within thirty (30) days of acceptance and approval of the invoice received from Contractor. 4.05 Close Out. Prior to final payment, Contractor will be required to complete a close-out form certifying that all work has been completed and releasing City (and any other party owning property with respect to which Contractor performed services hereunder) from all further obligations and liabilities. 4.06. Contractor shall be responsible for paying any subcontractors used in the performance of this Agreement. Subcontractors shall not bill the City directly. Expenses 4.07. 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 4.08. 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 3.04 and 3.05 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 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 Page 6 of 22 standards & details for all Work performed. 5.02. Contractor is responsible for damage resulting from performing repair and clean- up of the Work site. Warranty 5.03. Contractor warrants to City, for one (1) year from the date of any repairs, that the repairs shall be free from defects in material and workmanship. Contractor shall be liable for the replacement and installation of any parts that fail through a defect in material or workmanship at no charge to City during such warranty period. 5.04. City shall notify Contractor of general locations requiring repair and a general description of the field conditions at repair locations. City makes no guarantee of the total quantity of Work to be provided. Notification of properties whose service may be interrupted shall be the responsibility of City. 5.05. City shall not be responsible for the accuracy or completeness of information or data shown on the City's water, sewer, or storm drain system base maps or any other utility information. Contractor shall have full responsibility for reviewing and checking all such information and data, for calling Underground Service Alert, for locating all underground utilities, for coordinating the Work with owners of such underground utilities during repairs, for the safety and protection thereof, and for repairing any damage thereto resulting from the Work, the cost of which shall be considered as having been included in the Compensation. Contractor shall take all possible precautions for the protection of unforeseen utility lines, to provide for uninterrupted service, and to provide such special protection as may be necessary. All paved areas, including curb, gutter, and sidewalk, cut or damaged during performance of the Work, shall be replaced with similar material of equal thickness to match the existing adjacent undisturbed areas. 5.06. Contractor shall perform the Work under this Agreement on City's Premises during regular business hours or as directed by City. Insurance 5.07. Contractor and its subcontractor(s), if any, shall, prior to commencement of any Work and for the duration of this Agreement, obtain and maintain in full force and effect at its own expense, those minimum levels of insurance coverage as set forth below. Prior to commencing Work, Contractor shall provide the City's Risk Manager with proof of insurance providing and maintaining the coverages and endorsements set forth below. 5.08. All policies required under this Agreement shall contain endorsements (1) Page 7 of 22 providing that the policies cannot be canceled or materially reduced in coverage without giving at least thirty (30) days prior written notice to City; (2) specifically stating that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement; (3) providing for waiver of subrogation; and (4) providing City all the rights and privileges of an additional insured. 5.09. Contractor shall cause its insurers to issue, including but not limited to, Certificates of Insurance and policy endorsements required under this Agreement, or, upon request, certified copies of the insurance policies evidencing that the coverages and policy endorsements required under this Agreement, are maintained in force. 5.10. Contractor 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 against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by Contractors, 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, covering any vehicle utilized by Contractor in performing the Work required under this Agreement. 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. 5.11. The policy or policies required by this Agreement shall be issued by an insurer Page 8 of 22 admitted in the State of California and with a rating of at least a B+; VII in the latest edition of Best's Insurance Guide. 5.12. Contractor shall require each of its subcontractor(s), if any, to maintain insurance coverage that meets all of the requirements of this Agreement. 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 Work performed under this Agreement, 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. 5.13 Contractor agrees that if it does not keep the aforesaid insurance in full force and effect City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost. City may take out the necessary insurance and pay, at Contractor's expense, the premium thereon. 5.14 Any deductibles or self -insured retentions must be declared to approved by City. At the option of City, Contractor shall either reduce or eliminate the deductibles or self -insured retentions with respect to City or procure a bond guaranteeing payment of losses and expenses. Indemnification 5.15. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold harmless City and its elected officials, officers, agents, employees, and volunteers from any and all claims, suits, actions, demands, damages, liabilities, expenses, judgments, settlements, penalties, losses, fines, and all costs and expenses incurred in connection therewith, including, but not limited to, reasonable attorney's fees and all costs of defense, arising out of, resulting from, connected with or attributable to the intentional, reckless, negligent, or otherwise wrongful acts, errors, or omissions of Contractor or its employees or agents in the performance of this Agreement. The terms of this indemnity shall survive the termination of this Agreement and shall be given the broadest possible interpretation. 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. Indemnity Process 5.16. 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 Page 9 of 22 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. Representations 5.17 Contractor represents that it has read and understands the Agreement. 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. 5.18 Contractor represents that it employs or has available for employment in sufficient numbers, at its own expense, all unskilled, skilled, administrative, supervisory, professional and managerial or other personnel required to perform the Work as required by this Agreement and at all times shall be responsible for the Work of such personnel. 5.19. Contractor represents that it is experienced in performing, and has the qualifications and skills necessary, to perform the Work 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 Work 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. 5.20. Contractor declares and states that is has complied with and shall continue to comply with all federal, state and local laws regarding business permits and licenses that may be required to carry out the Work to be performed under this Agreement. Page 10 of 22 No Assignment or Subcontracting 5.21. This Agreement may not be assigned in whole or in part'by Contractor, nor may Contractor delegate or subcontract its duties 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 and have no effect. Consent by City shall not relieve Contractor of responsibility for performance of Contractor's obligations hereunder. Contractor shall be fully responsible to City for the performance of any and all subcontractors. City may assign all or any part of this Agreement at any time effective immediately upon written notification to Contractor. Designated Representative 5.22. At all times while Work is being performed on the Premises each Party shall be represented by a designated representative, who shall serve as principal liaison between the Parties. Contractor's designated representative shall be available by telephone or in person to City's designated representative during all hours that Work is performed on the Premises by Contractor. Each Party may notify the other in writing of the identity of such persons from time to time. Work Injury 5.23. 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, may be made available to Contractor's employees in emergency cases which are the direct result of accidents occurring on the Premises. Records, Inspection and Audit 5.24. 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. Page 11 of 22 Corporate Conduct 5.25. 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. Treatment of Confidential Information 5.26. For ten (10) years after the effective date of this Agreement, Contractor shall (1) refrain from using any Confidential Information except in connection with the Work; (2) refrain from disclosing Confidential Information to any third party other than to employees of Contractor who require it in performance of the Work and 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 Confidential Information substantially the same as those contained in this Agreement. 5.27. Contractor shall take reasonable precautions to safeguard any documents containing Confidential 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. 5.28. 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. 5.29. 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 Page 12 of 22 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. 5.30. All reports, information, data and exhibits prepared or assembled by Contractor in connection with the performance of the Work 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. 5.31. 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 5.32. Contractor shall comply with all Applicable Laws, including, but not limited to, 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. "Applicable Laws" shall mean any and all laws, regulations, rules, orders, directives, judgments, decrees, permits, approvals or other applicable requirements of any governmental entity or agency having jurisdiction that are applicable to any aspect of this Agreement that are in force on the Effective Date and as they may be enacted, issued or amended during the term of this Agreement. 5.33. 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. Progress Reports 5.34. Contractor shall meet with City staff, upon City's request, or as needed, in order to provide reports or information concerning the Work being performed by Contractor under this Agreement. Contractor's License Classification 5.35. Contractor shall possess a valid Class A General Engineering Contractor's license for the duration of this Agreement. Page 13 of 22 SECTION 6. TERMINATION OF AGREEMENT 6.01. Unless otherwise terminated as provided in this Section or unless otherwise extended according to the terms and conditions set forth in this Agreement, this Agreement will continue in effect for a period of one (1) year after the Effective Date of 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 the Work 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 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 Compensation. Termination on Occurrence of Stated Events 6.04. This Agreement shall 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 shall take effect immediately upon the date specified in Page 14 of 22 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 Work 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 whether of the same or other covenant or condition; 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. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 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 - Cox Industrial Services, Inc. Attn: Jim Cox 1320 E. Hill Street. Signal Hill, CA 90755 City - City of Vernon, California Attn: City Administrator 4305 Santa Fe Avenue Vernon, CA 90058 Fax: 562-490-2620 Fax: 323-826-1408 Telephone: 562-490-2606 Telephone: 323-583-8811 ext 561 Page 15 of 22 Entire Agreement of the Parties 7.02. This Agreement supersedes any and all agreements, either oral or written, between the parties with respect to the performance of the Work 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 performance of the Work. 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. 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 an arbitrator or 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 Page 16 of 22 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 decision(s), the Arbitrators shall determine the rights and obligations of the parties according to the substantive and procedural domestic 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. Force Majeure 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 Page 17 of 22 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. Modification 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. Contractor expressly waives all claims for compensation based upon quantum meruit, implied contract or oral contract. Headings and Captions 7.09. The headings and 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. Reservation of Rights 7.10. City reserves the right to award similar contracts to multiple contractors to ensure the City has adequate services. Authority to Execute this Agreement 7.11. The person or persons executing this Agreement on behalf of Contractor warrants and represents that he or she has the authority to execute this Agreement on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder. IN WITNESS WHEREOF, the parties have executed the Agreement on the dates shown below. Executed at llorr 1 California on I r City: City of Vernon _N�ti2�s iiLi1 Name: Hilario Gonzales, Mayor Page 18 of 22 Date: � l /�0 ATTEST: Manuela Giron, Ci Clerk Contractor: Cox Industrial Services, Inc. Name: Title: Date: Name: Title: Date: Page 19 of 22 APPROVED S TFR ,- Laurence S. Wiener, City Attorney Date: ATTEST: Manuela Giron, City Clerk Contractor: Cox Industrial Services, Inc. Name: Title: Date: i A 4 I %01 b t ej - " Name: �tCe)Lcs fnt- Title: 0� Date: 04 1610 Page 19 of 22 APPROVED AS TO FORM: Laurence S. Wiener, City Attorney EXHIBIT A EXHIBIT A PROPOSAL Page 20 of 22 cr 43 Ch cr Jul P, E. cr WO 46 I i H 107' LA IT � CDR ou CL cn 0. ZG/ZO 39vd lAN3S iviusnaNI XOO 909z06vz95T 91:90 600Z/LT/90 EXHIBIT B EXHIBIT B FORM CHANGE ORDER Page 21 of 22 CITY OF VERNON COMMUNITY SERVICES & WATER DEPARTMENT CONTRACT CHANGE ORDER NO. SUPPLEMENT NO. SHEET OF SHEETS PROJECT: P.O. NO. TO: CONTRACTOR REQUESTED BY: City of Vernon You are hereby directed to make the herein described changes to the plans and specifications or do the following described work not previously included in the plans and specifications of this contract. Except as specifically modified herein, all terms and conditions of the original contract remain in full force and effect, and apply to the additional work as if said work was originally included in the contract. Contract Amount (Base Bid) ... .. ........ ... .... ..... ..... ..... ... ... .. $ Amount of This Change Order .. ...... ..... .. . $ Amount of Previous Change Orders ... ... $ Total Change Orders .. ... .... .. $ Modified Contract Amount ...... ... ....... ... ....... .... ........... $ By reason of this change order the time of completion will be adjusted as follows: Approved: Date: Director of Community Services & Water Attest: Date: Manuela Giron, City Clerk We, the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all labor, equipment and materials, including overhead, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment therefore the prices shown above. Accepted Date: Contractor: By: Title: c: rroject rue/t-ontractorirurcnasmg Rev. 06/08 Page 1 of 1 Juarez, Debbie From: Barcia, Ana Sent: Wednesday, January 13, 2010 8:39 AM To: Giron, Nelly Cc: Juarez, Debbie Subject: Insurance Approval- Cox Industrial Attachments: Cox Industrial Services, Inc..pdf Good Morning All, Please be advised that the above referenced has provided acceptable insurance coverage for Resolution No. 2010-03, Service Agreement. Thank you, Ana Barcia City of Vernon Risk Management Department T: 323) 583-8811 ex 286 F: 323) 826-1439 abarci_a.@ ci._v_ernon. ca.us CONFIDENTIALITY NOTICE: This e-mail transmission, and any documents, files or previous e-mail messages attached to it may contain confidential information that is legally privileged. If you are not the intended recipient, or a person responsible for delivering it to the intended recipient, you are hereby notified that any disclosure, copying, distribution or use of any of the information contained in or attached to this transmission is STRICTLY PROHIBITED. If you have received this transmission in error, please immediately notify the sender. Please destroy the original transmission and its attachments without reading or saving in any manner. 1/13/2010 A-6 DATE: December 16, 2009 ti TO: Honorable Mayor and City Council -z, \to,\ FROM: Samuel Kevin Wilson, Director of Community Services & Water RE: Downey Underpass — Remove, Repair, & Reinstall Pump No. 2 The Community Services Department (Department) is requesting to have Pump No. 2 at the Downey Underpass removed, repaired and reinstalled. The existing pump has been in service for several years and it is probable that the impeller, bowls, bearings and related components are worn and in need of repair or replacement. The existing pump is a 15-horse power column style storm drain pump. It pumps in conjunction with Pump No. 1 to keep the underpass free of accumulated water during rainfall events. Pump No. 1 has been taken out -of -service due to a failure in the casing and excessive wear to the bearings and impeller. The likelihood of Pump No. 2 experiencing the same casing failure and wear to the bearings and impeller as Pump No. 1 is high with the same mechanical design and time in service. In addition, the packing gland on Pump No. 2 is leaking excessively and is in need of repair. It is in the City's best interest to repair Pump No. 2 rather than wait until it has to be repaired on an emergency basis. It is important that any repairs performed on these pumps be facilitated during the dry months to insure they are functioning in an efficient and effective manner during high rainfall episodes. Cox Industrial Services, Inc. provided the Department with a quote to remove, repair, and reinstall Pump No. 2 in the amount of $23,729.80. Funds to repair Pump No. 2 are available in account No. 011.1043.850000 The Department called two additional vendors in order to obtain quotes for the repair of Pump No. 2. General Pump provided a quote of $32,000.00 while the other vendor, Layne Christensen, failed to respond. It is my recommendation that the enclosed Services Agreement (Agreement) with Cox Industrial Services, Inc. to remove Pump No. 2; replace the bushings, bearings, shafting, packing and reinstall the subject pump at the Downey Underpass be approved by City Council at the next meeting. The City Attorney's office has approved the Agreement as to form. SKW/sr Enclosures RF� C El dI.A1 DEC 2 1 2009 CITY ATTORNEY'S OFFICE MEMORANDUM TO: Donal O'Callaghan, City Administrator FROM: Katrina C. Gonzales, Assistant City Attorney CC: Laurence S. Wiener, City Attorney Gena M. Stinnett, Assistant City Attorney Kevin Wilson, Director of Community Services and Water DATE: December 11, 2009 SUBJECT: Services Agreement with Cox Industrial Services, Inc. - Approved as to Form The City Attorney's office has reviewed the services agreement between the City and Cox Industrial Services, Inc. and has approved it as to form. 12720-0001\1193088vl.doc COMMUNITY SERVICES & WATER DEPARTMENT OFFICE MEMORANDUM A-6 TO: Donal O'Callaghan, City Administrator C—*— `` JJ - FROM: Samuel Kevin WilsonhDirector of Community Services and Water DATE: December 15, 2009 SUBJECT: Downey Underpass — Remove, Repair & Reinstall Pump No. 2 The Community Services Department (Department) is seeking permission to have Pump No. 2 at the Downey Underpass removed, repaired, and reinstalled by Cox Industrial Services, Inc. (Cox). The Department is in the process of having Pump No. 1, at the same location, replaced by General Pump Company (General Pump) under the attached Services Agreement (Agreement) due to a failure in the casing along with excessive wear to the bearings and impeller. To avoid a similar failure, the Department determined it was in the best interest of the City to remove, repair, and reinstall Pump No. 2 due to its extensive service life and likelihood that it will fail in the near future. In addition, the packing gland on Pump No. 2 is leaking excessively and in need of repair. The Department sought bids to replace the pump system in its entirety. Cox provided a quote of $83,068.00 for a new replacement pump; including installation. Obviously this is not a cost effective approach and the Section is therefore recommending that we repair the existing pump. Pump's No. 1 & 2 at the Downey Underpass are column style storm drain pumps. In essence, they keep the underpass free of accumulated water during rainfall events. It is important that these pumps are repaired in the dry months to insure they are in working order for the impending high rainfall months. Funds to repair Pump No. 2 are available in account No. 011.1043.850000. Cox has provided the Department with a quote of $23,729.80 to facilitate the refurbishment work. The Department called two additional vendors to get quotes for the repair of Pump No. 2. General Pump provided a quote of $32,000.00 while the other vendor, Layne Christensen, failed to respond. It is my recommendation that the enclosed Services Agreement with Cox Industrial Services, Inc. to remove Pump No. 2; replace the bushings, bearings, shafting, packing and reinstall the subject pump at the Downey Underpass be approved by City Council. The City Attorney's office has approved the Agreement as to form. Additionally, a Staff report is attached recommending that City Council approve the above -mentioned Agreement at the next meeting. Thank you. SKW/sr Enclosures RC1H IV 17,D DEC 2 12009 F:\scott\Scott\My Documents\Wells\Dow ey Undews\Doxmey Underpass Pump No.2 Appwval Reque Ldoc