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08.c. Contract with Waterboys Plumbing for the Plumbing Retrofit ProgramAgenda Item 8.c. Page 1 CITY COUNCIL CONSIDERATION OF APPROVING A ONE-YEAR CONTRACT EXTENSION FOR THE PLUMBING RETROFIT PROGRAM FEBRUARY 28,2012 PAGE 2 On March 8, 201 1, Waterboys Plumbing, Inc. was awarded a one year contract, which includes options for two, one year extensions. This is the first contract time extension request. During the length of their contract, Waterboys Plumbing, Inc. has performed to a satisfactory level and the City has received many favorable comments regarding the quality of workmanship and level of service. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 1) Approve staffs recommendation to approve a one-year contract extension to Waterboys Plumbing, Inc.; 2) Do not approve staffs recommendation ?to approve the one-year contract extension; 3) Modify as appropriate and approve staffs recommendation; or 4) Provide direction to staff. ANALYSIS OF ISSUES: In 2004, the program targeted 4,357 single family homes and 44 apartment complexes. After 7-112 years, 41% of the homes and 90% of the apartment complexes have been retrofitted. In addition, the program was expanded to include mobile homes and commercial properties. A total of 32% of last year's contract amount was expended. Indoor water conservation using retrofitting has proven to be very reliable and consistent. The per capita consumption for 201 1 was 154 gallons per day per person compared to 170 gallons per day per person in 2009. Phase II programs have also helped conserve water with washing machine rebates, cash for grass, and large landscape audits. ADVANTAGES: Every family residential property retrofitted conserves approximately 10,000 gallons of water per year. Qualified property owners may still take advantage of the program and receive free retrofitting to comply with the Mandatory Retrofit Upon Change of Ownership of Real Property Ordinance. DISADVANTAGES: Extending the contract will deplete funds available for Phase II of the Water Conservation Program by up to $86,787. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NO'TIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, February 23, 2012. The Agenda and staff report were posted on the City's website on Friday, February 24, 2012. No public comments were received. Agenda Item 8.c. Page 2 CITY COUNCIL CONSIDERATION OF APPROVING A ONE-YEAR CONTRACT EXTENSION FOR THE PLUMBING RETROFIT PROGRAM FEBRUARY 28,201 2 PAGE 3 Attachment: 1. Contract Agenda Item 8.c. Page 3 ATTACHMENT 1 ClTY OF ARROYO GRANDE STATE OF CALIFORNIA CONTRACT FOR: ClTY OF ARROYO GRANDE PLUMBING RETROFIT PROGRAM THIS AGREEMENT, made and entered into this 28th day of February, 2012, by and between the ClTY OF ARROYO GRANDE, a municipal corporation of the State of California, hereinafter designated City, party of the first part, and WATERBOYS PLUMBING. INCORPORATED hereinafter designated as Contractor, party of the second part, WITNESSETH: That the parties hereto do mutually agree as follows: ARTICLE I. For and in consideration of the payments and agreements hereinafter mentioned to be made and performed by City, Contractor agrees with City to furnish all materials, equipment and labor and construct facilities for City, and to perform and complete in a good and workmanlike manner all the work pertaining thereto shown on the plans and described in the specifications hereto attached, and to furnish at his own proper cost and expense all tools, equipment, labor, and materials necessary therefore, except such materials as in the said specifications are stipulated to be furnished by City, and to do everything required by this Contract and the said specifications and plans, and the requirements of the Engineer under them, to wit: CONTRACT SCHEDULE OF COSTS CON- I ITEM NO. 1 2 3 4 5 6 7 8 9 10 11 TOTAL CONTRACT PRICE $86,786.60 UNIT PRICE $181.39 $252.20 $16.71 $5.60 $13.30 $20.00 $21 .OO $97.00 $1 06.20 $1 38.00 $1 45.00 AMOUNT $54,417.00 $15,132.00 $6,015.60 $1,400.00 $665.00 $3,600.00 $210.00 $1,455.00 $1,062.00 $1,380.00 $1,450.00 DESCRIPTION 1.6 gpm Flush Toilet - 12" Rough 1.6 gpm Flush Toilet - 10" Rough Toilet Seat and Cover 2.2 gpm Faucet Aerator 2.5 gpm Shower Head Water Pressure Determination Adjust Existing Water Pressure Regulating Valve Replace Existing 314" Water Pressure Regulating Valve Replace Existing 1" Water Pressure Regulating Valve Install New 314" Water Pressure Regulating Valve Install New 1" Water Pressure Regulating Valve - QTY 300 60 360 250 50 180 10 15 10 10 10 UNIT EA EA EA EA EA EA EA EA EA EA EA - Agenda Item 8.c. Page 4 TOTAL CONTRACT IN WORDS: Eiclhtv Six Thousand Seven Hundred Eiahty Six Dollars and Sixtv Cents BY: SIGNATURE DATE CONTRACTORS BUSINESS NAME: WATERBOYS PLUMBING. INC. CONTRACTORS LICENSE NO.: 928834 LICENSE EXPIRATION DATE: February 28.2013 ARTICLE II. For furnishing all said equipment, materials and labor, performing demolition as required, and doing all the work contemplated and embraced in this Contract; and for all loss and damage arising out of the nature of the work aforesaid, or from the action of the elements or from any unforeseen difficulties which may arise or be encountered in the prosecution of the work until its acceptance by City, and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work, except such as in the said specifications are expressly stipulated to be borne by City; and for well and faithfully completing the work and the whole thereof, in the manner shown and described in the said plans and specifications and in accordance with the requirements of the Engineer under them, City will pay and Contractor shall receive as full compensation therefore the amounts for such work as installed for the unit prices bid therefore in accordance with the proposal of Contractor. ARTICLE Ill. City hereby promises and agrees with said Contractor to employ, and does hereby employ, said Contractor to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the prices aforesaid, and hereby contracts to pay the same at the time, in the manner and upon the conditions set forth in the specifications; and the said parties for themselves, their heirs, executors, administrators, successors, and assigns, do hereby agree to full performance of the covenants herein contained. ARTICLE IV. Contract Documents shall consist of The Notice to Contractors, the Statement of Prevailing Wages, the Contract Bid, the Contract Agreement, the Standard Specifications, the Technical Specifications, and the Special Provision mentioned therein and titled "CITY OF ARROYO GRANDE, PLUMBING RETROFIT PROGRAMn, all of which are hereto attached are hereby incorporated in and made a part of this Contract. ARTICLE V. Should any of the materials or equipment prove defective or should the work prove defective due to faulty workmanship, material furnished or methods of installation, or should the work or any part thereof fail to operate properly as originally intended and in accordance with the plans and specifications, due to any of the above causes, all within twelve (12) months after date on which the work called for in this Contract is accepted by City, the undersigned agrees to reimburse City, upon demand, for its expenses incurred in restoring said work to the condition contemplated in said project, including the cost of any such equipment or materials replaced and the cost of removing and replacing any work necessary to make such Agenda Item 8.c. Page 5 replacement or repairs, or, upon demand by City, to replace any such materials and to repair said work completely without cost to City so that said work will function successfully as originally contemplated. City shall have the unqualified option to make any needed replacement or repairs itself or to have such replacements or repairs done by the undersigned. In the event City elects to have said work performed by the undersigned, the undersigned agrees that the repairs shall be made and such materials as are necessary shall be furnished and installed within a reasonable time after the receipt of demand from City. If the undersigned shall fail or refuse to comply with his obligations under this guaranty, City shall be entitled to all costs and expenses, including attorney's fees, reasonably incurred by reason of the said failure or refusal. ARTICLE VI. If Contractor should be adjudged a bankrupt, or if he makes a general assignment for the benefit of his creditors, or if a receiver should be appointed on account of his insolvency, or if he or any of his subcontractors should persistently violate any of the provisions of the Contract, or if he should disregard laws, ordinances or the instructions of the Engineer, then City may, upon certificate of the Engineer when sufficient cause exists to justify such action, serve written notice upon Contractor and his surety of its intention to terminate the Contract, such notice to contain the reasons for such intention to terminate the Contract, and unless, within five (5) days after the serving of such notice, such violations shall cease and satisfactory arrangements for correction thereof be made, the Contract shall, upon the expiration of said five (5) days, cease and terminate. In the event of any such termination, City shall immediately serve written notice thereof upon the surety and Contractor, and the surety shall have the right to take over and perform the Contract, provided, however, that if the surety, within ten (1 0) days after the serving upon it of notice of termination, does not give City written notice of its intention to take over and perform the Contract or does not commence performance thereof within the ten (1 0) days stated above from the date of the serving of such notice, City may take over the work and prosecute the same to completion by Contract or by any other method it may deem advisable, for the account and at the expense of Contractor, and Contractor and his surety shall be liable to City for any excess cost occasioned City thereby, and in such event City may, without liability for so doing, take possession of and utilize in completiqg the work such materials, appliances, plans and other property belonging to Contractor as may be on the site of the work and necessary therefore. In such case Contractor shall not be entitled to receive any further payment until the work is finished. If the unpaid balance of the Contract price shall exceed the expenses of finishing the work, including compensation for additional managerial and administration services, such excess shall be paid Contractor. If such expense shall exceed such unpaid balance, Contractor shall pay the difference to City. The expense incurred by City, as herein provided, and damage incurred through Contractor's default, shall be certified by the Engineer. ARTICLE VII. The Contractor shall indemnify, defend, and hold harmless the City, and its officers, officials, employees and agents, from and against any and all claims asserted, liability, loss, damage, expense, costs (including without limitation costs and fee of litigation) of every nature arising of, directly or indirectly, or in connection with this Contract or the acts or omissions of Contractor, Contractor's Subcontractors, employees, representatives, agents and invitees including, but not limited to, performance of the work hereunder or failure to comply with any of the obligations contained herein, except such loss or damage which was caused by the established active negligence of City or the established sole negligence or willful misconduct of City, its officers, officials, employees and agents. Said indemnification and hold harmless provisions shall be in full force and effect regardless of whether or not there shall be insurance policies covering and applicable to such liability, loss, damage, expense or cost. Agenda Item 8.c. Page 6 The Contractor agrees that the use of any and all public streets and improvements which are part of or subject to this Contract shall be at all times, prior to the final acceptance by the City, the sole and exclusive risk of the Contractor. The Contractor further specifically agrees that he shall indemnify and hold City free of any liability for any accident, loss or damage to the work which is the subject of this Contract prior to its completion and acceptance by the City. ARTICLE VIII. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid or proposal therefore, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said bid or proposal conflicting herewith. ARTICLE IX. Time is of the essence of this contract and failure to comply with this provision shall be a material breach of this contract. ARTICLE X. If any part of this contract is held invalid by a court of competent jurisdiction, the balance shall retain its full force and effect. ARTICLE XI. Contractor shall procure and maintain, at its own cost and expense, insurance as specified in the Special Provisions of the Contract Documents, which are incorporated into this Contract pursuant to Article IV, herein. Maintenance of required insurance coverage is a material element of this contract and failure to maintain or renew coverage or to provide evidence of renewal shall be a material breach of this contract. IN WITNESS WHEREOF: The parties hereto have caused this Contract to be executed the day and year first above written. CITY OF ARROYO GRANDE ATTEST: City Clerk Title: Agenda Item 8.c. Page 7 GENERAL I-IABILITY ENDORSEMENT CITY OF ARROYO GRANDE 300 East Branch Street Arroyo Grande, CA 93420 POLICY INFORMATION 1. lnsurance Company: Policy Number: 2. Policy Term - From: To: Endorsement Effective Date: 3. 4. Name Insured: 5. Address of Named Insured: 6. Deductible or Self-Insured Retention (Nil unless otherwise specified): $ 7. Coverage is equivalent to: Commercial General Liability "occurrence" form CG0001. 8. Bodily Injury and Property Damage Coverage is: POLICY AMENDMENTS This endorsement is issued in consideration of the policy premium. Notwithstanding any inconsistent statement in the policy to which this endorsement is attached or any other endorsement attached thereto, it is agreed as follows: 1) INSURED. The City, its elected or appointed officials, employees, agents and volunteers, are included as insured with regard to damages and defense of claims arising from: (a) activities performed by or on behalf of the Named Insured, (b) products and completed operations of the Named Insured, or (c) premises owned, leased or used by the Named lnsured or (d) automobiles owned, leased, hired or borrowed by the named insured. 2) CONTRIBUTION NOT REQUIRED. As respects: (a) work performed by the Named lnsured for or on behalf of the City; or (b) products sold by the Named lnsured to the City; or (c) premises leased by the Named lnsured from the City, the insurance afforded by this policy shall be primary insurance as respects the City, its elected or appointed officials, employees, or volunteers; or stand in an unbroken chain of coverage excess of the Named Insured's scheduled underlying primary coverage. In either event, any other insurance maintained by: the City, its elected or appointed officials, employees, agents and volunteers, shall be in excess of this insurance and shall not contribute to it. SCOPE OF COVERAGE. The policy, if primary, affords coverage at least as broad as: 1) lnsurance Services Office Commercial General Liability Coverage, "occurrence" form CG0001; or 2) If excess, affords coverage, which is at least as broad as the primary insurance forms referenced in the proceeding sections (1). SEVERABILITY OF INTEREST. The insurance afforded by this policy applies separately to each insured who is seeking coverage or against Agenda Item 8.c. Page 8 whom a claim is made or a suit is brought, except with respects to the Company's limit of liability. The inclusion of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included. PROVISIONS REGARDING THE INSURED'S DUTIES AFTER ACCIDENT OR LOSS. Any failure to comply with reporting provisions of the policy shall not affect coverage provided to the City, its elected or appointed officials, employees, agents or volunteers. CANCELLATION NOTICE. The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail return receipt requested has been given to the City. Such notice shall be addressed as shown in the heading of this endorsement. INCIDENT AND CLAIM REPORTING PROCEDURE Incidents and claims are to be reported to the insurer at: ATTN : Title: Department: Company: Street Address: Telephone Number: SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER 1, (printltype name), warrant that I have authority to bind the below listed insurance company and by my signature hereon do so bind this company. SIGNATURE OF AUTHORIZED REPRESENTATIVE (original signature required on endorsement furnished to the City) ORGANIZATION: TITLE: ADDRESS: TELEPHONE: FAX: -- END OF GENERAL LIABILITY ENDORSEMENT - Agenda Item 8.c. Page 9 ATTN: POLICY INFORMATION 1. lnsurance Company: Policv Number: 2. Policv ~erm - From: To: ~Adorsement ~ffectiver - 3. Name Insured: 4. Addressof Named Insured: 5. Limit Liability Any One OccurrenceIAggregate: $ 6. Deductible or Self-Insured Retention (Nil unless otherwise specified): $ POLICY AMENDMENTS This endorsement is issued in consideration of the policy premium. Notwithstanding any inconsistent statement in the policy to which this endorsement is attached or any other endorsement attached thereto, it is agreed as follows: INSURED. The City, its elected or appointed officials, employees, agents and volunteers, are included as insured with regard to damages and defense of claims arising from: (a) activities performed by or on behalf of the Named Insured, (b) products and completed operations of the Named Insured, or (c) premises owned, leased or used by the Named Insured, or (d) automobiles owned, leased, hired, or borrowed by the Named Insured. CONTRIBUTION NOT REQUIRED. As respects: (a) work performed.by the Named lnsured for or on behalf of the City; or (b) products sold by the Named lnsured to the City; or (c) premises leased by the Named lnsured from the City, the insurance afforded by this policy shall be primary insurance as respects the City, its elected or appointed officials, employees, or volunteers; or stand in an unbroken chain of coverage excess of the Named Insured's scheduled underlying primary coverage. In either event, any other insurance maintained by the City, its elected or appointed officials, employees, agents or volunteers, shall be in excess of this insurance and shall not contribute t SCOPE OF COVERAGE. The policy, if primary, affords coverage at least as broad as: 1) lnsurance Services Office form number CA 0001 (ed. 1/78), Code 1 (any auto) and endorsement CA 0025. 2) If excess, affords coverage, which is at least as broad as the primary insurance forms referenced in the preceding section (1). SEVERABILITY OF INTEREST. The insurance afforded by this policy applies separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respects to the Company's limit of liability. The inclusion of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included. PROVISIONS REGARDING THE INSURED'S DUTIES AFTER ACCIDENT OR LOSS. Any failure to comply with reporting provisions of the policy or breaches or violations of warranties shall not affect coverage provided to the City, its elected or appointed officials, employees, agents or volunteers. CANCELLATION NOTICE. The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail return receipt Agenda Item 8.c. Page 10 requested has been given to the City. Such notice shall be addressed as shown in the heading of this endorsement. INCIDENT AND CLAIM REPORTING PROCEDURE Incidents and claims are to be reported to the insurer at: ATTN: Title: Department: Company: Street Address: Telephone Number: SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER. 1, (printftype name), warrant that I have authority to bind the below listed insurance company and by my signature hereon do so bind this company. SIGNATURE OF AUTHORIZED REPRESENTATIVE (original signature required on endorsement furnished to the City) ORGANIZATION: - ADDRESS: TITLE: TELEPHONE: . . - - . . - - - FAX: -- END OF AUTOMOBILE LIABILITY - Agenda Item 8.c. Page 11 WORKER'S COMPENSATIONIEMPLOYMENT LIABILITY ENDORSEMENT POLICY INFORMATION 1. Insurance Company: Policy Number: 2. Policy Term - From: To: Endorsement Effective Date: 3. Name Insured: 4. Address of Named Insured: 5. Limit Liability Any One OccurrenceIAggregate: 6. Deductible or Self-Insured Retention (Nil unless otherwise specified): $ POLICY AMENDMENTS In consideration of the policy premium and notwithstanding any inconsistent statement in the policy to which this endorsement is attached or any other endorsement attached thereto, it is agreed as follows: Cancellation Notice. The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail return receipt requested has been given to the City. Such notice shall be addressed as shown in the heading of this endorsement. Waiver of Subroclation. The Insurance Company agrees to waive all rights of subrogation against the City, its elected or appointed officials, agents and employees for losses paid under the terms of this policy which arise from work performed by the Named Insured for the City. SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER 1, (printltype name), warrant that I have authority to bind the below listed insurance company and by my signature hereon do so bind this company. SIGNATURE OF AUTHORIZED REPRESENTATIVE (original signature required on endorsement furnished to the City) ORGANIZATION: TITLE: ADDRESS: TELEPHONE: FAX: CITY OF ARROYO GRANDE ("the City") A Municipal Corporation ATTN: This certifies to the City that the following described policies have been issued to the Insured named below and are in force at this time. Insured: Agenda Item 8.c. Page 12 Address: Description of operationsllocationslproducts insured (show contract name and lor number, if any): POLICIES AND INSURERS Worker's Compensation (Name of Insurer) Best's Rating Check Policy Type: Comprehensive General Liability Commercial General Liability (Name of Insurer) Best's Rating: Business Auto Policy Liability Coverage Symbol (Name of Insurer) Best's Rating: Umbrella Liability (Name of Insurer) Best's Rating: POLICY NUMBER ' EXPIRATION DATE LIMITS BODILY INJURY PROPERTY DAMAGE Employer's Liability $ Claims-made Occurrence Each Occurrence Each Occurrence $ $ or Combined Single Limit $ Aggregate $ Each Person $ Each Accident $ Combined Single Limit $ Each Accident $ Claims-Made Occurrence OccurrencelAggregate $ Self Insured Retention $ Agenda Item 8.c. Page 13 This certificate is issued as a matter of information. This certificate is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies. The following coverage or conditions are in effect The City, its officials, and employees, agents and volunteers, are named on all liability policies described above as insured as respects: (a) activities performed for the City by or on behalf of the named insured, (b) products and completed operations on the Named Insured, and (c) premises owned, leased or used by the Named Insured. Products and Completed Operations. The undersigned will mail to the City 30 days' written notice by receipted delivery of cancellation or deduction of coverage or limits. Cross Liability Clause (or equivalent wording). Personal Injury, Perils A, B, and C. Broad form Property Damage X, C, U hazards included. Contractual Liability Coverage applying to this Contract. Liquor Liability. Coverage afforded the City, its officials, employees, agents and volunteers, as insured applies as primary and not excess or contributing to any insurance issued in the name of the City. Waiver of subrogation from Workers' Compensation insurer. Agency of Brokerage Address YES Insurance Company NO Home Office Name of Person to be Contacted Authorized Signature ~elephone Number Date Note: Authorized signatures may be the agent's if agent has placed insurance through an agency agreement with the insurer. If insurance is brokered, authorized signature must be of official of insurer. This information must include all construction work undertaken in the State of California by the bidder and any partnership, joint venture or corporation that any principal of the bidder participated in as a principal or owner for the last five calendar years and the current calendar year prior to the date of bid submittal. Separate information shall be submitted for each particular partnership, joint venture, corporate or individual bidder. The bidder may attach any additional information or explanation of data which he would like taken into consideration in evaluating the safety record. An explanation must be attached of the circumstances surrounding any and all fatalities. Agenda Item 8.c. Page 14