12-0618_LEGEND PUMP & WELL SERVICE, INC._Construction Agreement CONSTRUCTION AGREEMENT
[Work Under $30,000]
THIS AGREEMENT is made, entered into,and shall become effective this day
of June, 2012, by and between the City of San Juan Capistrano (hereinafter referred to
as the "City") and Legend Pump & Well Service Inc., (hereinafter referred to as the
"Contractor").
RECITALS:
WHEREAS, City desires to retain the services of Consultant regarding the City's
proposal to repair San Juan Basin Authority (SJBA) Well #2; and
WHEREAS, Consultant is qualified by virtue of experience, training, education and
expertise to accomplish such services.
NOW, THEREFORE, City and Consultant mutually agree as follows:
Section 1. Scope of Work.
The scope of work to be performed by the Consultant shall consist of;the supply all
tools, equipment, labor and materials to install the pre-existing pump and column pipe with
all new 1-3/16"316 type Stainless Steel line shafts with 316 Stainless Steel couplings and
11-6" x 1-3/16" neoprene inserts into City well SJBA#2 to operating status, as set forth in
Exhibit 'A" attached and incorporated herein by reference. To the extent that there are
any conflicts between the provisions described in Exhibit "A" and those provisions
contained within this Agreement, the provisions in this Agreement shall control.
Section 2. Term.
This Agreement shall commence on the effective date and shall terminate, and all
services required hereunder shall be completed, no later than 90 calendar days.
Section 3. Compensation.
3.1 Amount.
Total compensation for the services hereunder shall not exceed$16,076,as
set forth in Exhibit "A" attached and incorporated herein by reference.
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3.2 Method of Payment.
Subject to Section 3.1, Contractor shall submit monthly invoices based on
total services which have been satisfactorily completed for such monthly period. The City
will pay monthly progress payments based on approved invoices in accordance with this
Section.
3.3 Records of Expenses.
Contractor shall keep complete and accurate records of all costs and
expenses incidental to services covered by this Agreement. These records will be made
available at reasonable times to City.
Section 4. Independent Contractor.
It is agreed that Contractor shall act and be an.independent contractor and not an
agent or employee of City, and shall obtain no rights to any benefits which accrue to City's
employees.
Section 5. Limitations Upon Subcontracting and Assignment.
The experience, knowledge, capability and reputation of Contractor, its principals
and employees were a substantial inducement for City to enter into this Agreement.
Contractor shall not contract with any other entity to perform the services required without
written approval of the City. This Agreement may not be assigned, voluntarily or by
operation of law,without the prior written approval of the City. If Contractor is permitted to
subcontract any part of this Agreement by City, Contractor shall be responsible to City for
the acts and omissions of its subcontractor as it is for persons directly employed. Nothing
contained in this Agreement shall create any contractual relationships between any
subcontractor and City. All persons engaged in the work will be considered employees of
Contractor. City will deal directly with and will make all payments to Contractor.
Section 6. Changes to Scope of Work.
For extra work not part of this Agreement, a written authorization from City is
required prior to Contractor undertaking any extra work. In the event of a change in the
Scope of Work provided for in the contract documents as requested by the City,the Parties
hereto shall execute an addendum to this Agreement setting forth with particularity all
terms of the new agreement, including but not limited to any additional Contractor's fees.
Section 7. Familiarity with Work and/or Construction Site.
By executing this Agreement, Contractor warrants that: (1) it has investigated the
work to be performed;(2)it has investigated the work site(s),and is aware of all conditions
there; and (3) it understands the facilities, difficulties and restrictions of the work to be
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performed under this Agreement. Should Contractor discover any latent or unknown
conditions materially differing from those inherent in the work or as represented by City, it
shall immediately inform the City of this and shall not proceed with further work under this
Agreement until written instructions are received from the City.
Section 8. Time of Essence.
Time is of the essence in the performance of this Agreement.
Section 9. Compliance with Law.
Contractor shall comply with all applicable laws,ordinances, codes and regulations
of federal, state and local government.
Section 10. Conflicts of Interest.
Contractor covenants that it presently has no interest and shall not acquire any
interest, direct or indirect, which would conflict in any manner or degree with the
performance of the services contemplated by this Agreement. No person having such
interest shall be employed by or associated with Contractor.
Section 11. [RESERVED].
Section 12. IRESERVEDI.
Section 13. Indemnity.
To the fullest extent permitted by law,Contractor agrees to protect,defend,and hold
harmless the City and its elective and appointive boards, officers, agents, and employees
from any and all claims, liabilities, expenses, or damages of any nature, including
attorneys' fees, for injury or death of any person, or damages of any nature, including
interference with use of property, arising out of, or in any way connected with the
negligence, recklessness and/or intentional wrongful conduct of Contractor, Contractor's
agents, officers, employees, subcontractors, or independent contractors hired by
Contractor in the performance of the Agreement. The only exception to Contractor's
responsibility to protect, defend, and hold harmless the City, is due to the negligence,
recklessness and/or wrongful conduct of the City, or any of its elective or appointive
boards, officers, agents, or employees.
This hold harmless agreement shall apply to all liability regardless of whether any
insurance policies are applicable. The policy limits do not act as a limitation upon the
amount of indemnification to be provided by Contractor.
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Section 14. Insurance.
On or before beginning any of the services or work called for by any term of this
Agreement, Contractor, at its own cost and expense, shall carry, maintain for the duration
of the agreement, and provide proof thereof that is acceptable to the City, the insurance
specified below with insurers and under forms of insurance satisfactory in all respects to
the City. Contractor shall not allow any subcontractor to commence work on any
subcontract until all insurance required of the Contractor has also been obtained for the
subcontractor. Insurance required herein shall be provided by Admitted Insurers in good
standing with the State of California and having a minimum Best's Guide Rating of A-Class
VII or better.
14.1 Comprehensive General Liability.
Throughout the term of this Agreement, Contractor shall maintain in full force
and effect Comprehensive General Liability coverage in an amount not less than one
million dollars per occurrence ($1,000,000.00), combined single limit coverage for risks
associated with the work contemplated by this agreement. If a Commercial General
Liability Insurance form or other form with a general aggregate limit is used, either the
general aggregate limit shall apply separately to the work to be performed under this
agreement or the general aggregate limit shall be at least twice the required occurrence
limit.
14.2 Comprehensive Automobile Liability.
Throughout the term of this Agreement, Contractor shall maintain in full force
and effect Comprehensive Automobile Liability coverage, including owned, hired and non-
owned vehicles in an amount not less than one million dollars per occurrence
($1,000,000.00).
14.3 Workers' Compensation.
If Contractor intends to employ employees to perform services under this
Agreement, Contractor shall obtain and maintain, during the term of this Agreement,
Workers'Compensation Employer's Liability Insurance in the statutory amount as required
by state law.
14.4 Proof of Insurance Requirements/Endorsement.
Prior to beginning any work under this Agreement,Contractor shall submit the
insurance certificates, including the deductible or self-retention amount,and an additional
insured endorsement naming City, its officers, employees, agents, and volunteers as
additional insureds as respects each of the following: Liability arising out of activities
performed by or on behalf of Contractor, including the insured's general supervision of
Contractor; products and completed operations of Contractor; premises owned,occupied
or used by Contractor; or automobiles owned, leased, hired, or borrowed by Contractor.
The coverage shall contain no special limitations on the scope of protection afforded City,
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its officers, employees, agents, or volunteers.
14.5 Notice of Cancellation/Termination of Insurance.
The above policy/policies shall not terminate, nor shall they be cancelled,nor
the coverages reduced, until after thirty(30)days'written notice is given to City,except that
ten (10) days' notice shall be given if there is a cancellation due to failure to pay a
premium.
14.6 Terms of Compensation.
Contractor shall not receive any compensation until all insurance provisions
have been satisfied.
14.7 Notice to Proceed.
Contractor shall not proceed with any work under this Agreement until the
City has issued a written"Notice to Proceed"verifying that Contractor has complied with all
insurance requirements of this Agreement.
Section 15. Termination.
City shall have the right to terminate this Agreement without cause by giving thirty
(30) days' advance written notice of termination to Contractor.
In addition, this Agreement may be terminated by any party for cause by providing
ten (10)days' notice to the other party of a material breach of contract. If the other party
does not cure the breach of contract, then the agreement may be terminated subsequent
to the ten (10)day cure period.
Section 16. Notice.
All notices shall be personally delivered or mailed to the below listed addresses, or
to such other addresses as may be designated by written notice. These addresses shall
be used for delivery of service of process:
To City: City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Keith Van Der Maaten
To Contractor: Legend Pump & Well Service Inc.
590 N. Main St.
Riverside, Ca. 92501
Attn: Keith Collier
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Section 17. Prevailing Wanes.
The CITY has been advised that the Prevailing Wages Law applies to the work.
CONTRACTOR shall be responsible for CONTRACTOR's compliance in all respects with
the prevailing wage rates to all the laborers involved, and with California Labor Code
Section 1770 et seq., including the keeping of all records required by the provisions of
Labor Code Section 1776 and the implementing administrative regulations. The CITY shall
be a third party beneficiary of the forgoing covenant with rights to enforce the same as
against the CONTRACTOR.
Section 18. Dispute Resolution.
In the event of a dispute arising between the parties regarding performance or
interpretation of this Agreement, the dispute shall be resolved by binding arbitration under
the auspices of the Judicial Arbitration and Mediation Service ("JAMS").
Section 19. Entire Aureement.
This Agreement constitutes the entire understanding and agreement between the
parties and supersedes all previous negotiations between them pertaining to the subject
matter thereof.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement.
CITY SAN JU I CAPISTRANO
B
aren P. Brust, City Manager
CONTRACTOR
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Maria o r ity Cle k
APPROVED AS TO FORM:
Omar Sand. al, City-Attorney
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Licensed Conaactm 951-830-1355
ljc m Na.964537
April 12,2012
CITY OF SAN JUAN CAPISTRANO
34250 Paseo Adelanto
San Juan Capistrano,Ca
Attention: West Curry
Reference: SJBA#2 Repair
After removal and inspection,all of your equipment appears to be in good condition with
the exception of the line shafts.The water is destroying the 416 stainless steel shafting.
This is causing premature wear on the rubber inserts and causing vibration.Matt Crowley
has picture for your viewing on the equipment. Below is our recommendation to repairing
you pump equipment.
Drive out,set up 14 Ton Crane and remove discharge line motor and
6"water lube pump assembly. Secure truck and site,return.
2 Men and 14 Ton Crane
$3,500.00
Tear down pump steam clean and inspect for repairs.Reassemble bowl
Assembly and epoxy coat. Load equipment for install
Shop Labor
$1,756.00
Drive out,set up 14 Ton Crane and install 6"water lube pump assembly,
bolt up discharge line install motor,test return.
2 Men and 14 Ton Crane
$3,800.00
Materials
11- 13/16"x 10' threaded and coupled 316 stainless steel line shafts $5,886.00
11 — 1 3/16 stainless steel couplings $660.00
11-6 x 13/16"rubber inserts(Installed) $474.00
590 N. Main St.Riverside CA 92501 951-682-1509 951-682-1772 FAX
EXHIBIT A
Legend Pump&Well Serv. 951-682-1772 p.2
Total Amount for the Above Work $16,076.00
These prices are firm for thirty days,after such time it may be subject to review and/or
possible change.This price does include applicable sales taxes.
Sincer
Christy Jaki
From: Christy Jakl
Sent: Monday,June 18, 2012 3:23 PM
To: Justin Kirk
Subject: Legend Pump and Well Construction Contract
Attachments: 2012 Legend Pump and Well Construction Contract.pdf
Hello,
Attached is the executed Legend Pump and Well Construction Contract for S]BA Well No. 2.
Thanks!
Christi Jaki
Deputy city Clerk
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
(949)443-6310 1 (949)493-1053 fax
i
32400 PAl3E0 AOELANTO .% � MEMBERS OF THE CITY COUNCIL
SAN JUAN CAPISTRANO,CA 92675 SAMALLEVATO
(949)493.1171 isofn ►
(949)493.1053 FAx . FREESE
Ifltlll8►II (96(ouLARRY KRAMER
wwwsanfuancapistrano.org 1776 DEREK REEVE
0 C JCHN TAYLOR
TRANSMITTAL
TO:
Legend Pump &Well Sevices, Inc.
Attn: Keith Collier
590 N. Main Street
Riverside, CA 92501
DATE: June 18, 2012
FROM: Christy Jakl, Deputy City Clerk (949) 443-6310
RE: Construction Agreement— San Juan Basin Authority Well No. 2 Repairs.
Thank you for maintaining documentation confirming compliance with the terms of the
agreement related to insurance.
Please keep in mind this documentation must remain current with our office during the term of
the agreements. If you have questions related to insurance requirements, please call me at
(949) 443-6310.
If you have questions concerning the agreement, please contact Justin Kirk, Senior .
Management Analyst at (949) 443-6381.
Enclosed is an original agreement for your records.
Cc: Justin Kirk, Senior Management Analyst
San Juan Capistrano: Presenting the Past to Enhance the Future
`,�Pnntod on 10014 recyded paper