HomeMy WebLinkAboutReso 99-2021 (21-373)City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
City Council
' Resolution: RES 99-2021
File Number: 21-373 Enactment Number: RES 99-2021
RESOLUTION AWARDING A CONSTRUCTION
CONTRACT TO MURPHY INDUSTRIAL COATINGS,
INC. OF SIGNAL HILL, CALIFORNIA FOR THE
WATER QUALITY CONTROL PLANT AND PUMP
STATION COATING AND CORROSION
PROTECTION PROJECT PHASES TWO AND THREE
(PROJECT NO. SS1307 & SS1901) IN AN AMOUNT
NOT TO EXCEED $865,537.00; AUTHORIZING A
TOTAL CONSTRUCTION BUDGET OF $1,038,644.40;
AND AUTHORIZING THE CITY MANAGER TO
EXECUTE THE CONSTRUCTION CONTRACT ON
BEHALF OF THE CITY.
WHEREAS, the City of South San Francisco (City) co-owns and operates the South San
Francisco/San Bruno Water Quality Control Plant (WQCP), located at 195 Belle Air Road, and Sanitary
Sewage Pump Stations that convey and treat wastwater for the Cities of South San Francisco and .San
Bruno; and
WHEREAS, the City implemented a protective coatings program to improve wastewater
facilities and prolong the useful life of the system components, meet service expectations and regulatory
requirements, and safeguard the system's safety and reliability; and
WHEREAS, Staff completed an asset inventory to prioritize rehabilitation needs based on the
comprehensive condition assessment created by engineers in 2016; and
WHEREAS, the City engaged EKI Environmental & Water. Inc. to help structure a multi-year,
phased program to coat Plant and Pump Station facilities; and
WHEREAS, Staff advertised a Notice Inviting Bids for Phase Two and Three on March 15 and
March 22, 2021; and
WHEREAS, on April 13, 2021, Staff received four bids in response; and
WHEREAS, Public Works contracts such as this project are awarded to the lowest responsible
bidder whose bid is responsive per Public Contract Code §20166; and
City of South San Francisco Page 1
File Number. 21-373
Enactment Number. RES 99-2021
WHEREAS, the lowest responsible bidder was Murphy Industrial Coatings, Inc. of Signal Hill,
California, with a bid amount of $865,537.00; and
WHEREAS, Staff may use a construction contingency of 20% ($173,107.40) for any
additional costs related to design or construction method changes during the construction operations; and
WHEREAS, this Project is funded by the Sewer Funds; and
WHEREAS, the Project is included in the City of South San Francisco's Fiscal Year
2020-2021 Capital Improvement Program (Project No. ss1307 & 1901) with sufficient funds allocated to
cover the project cost; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South San
Francisco that the City Council hereby awards a construction contract, a draft of which is attached hereto
as Exhibit A and incorporated herein, for the Water Quality Control Plant Coating and Corrosion
protection Project Phase Two and Three to Murphy Industrial Coatings, Inc. of Signal Hill, California,
in an amount not to exceed $865,537.00 conditioned on Murphy Industrial Coatings' timely execution of
the Project contract and submission of all required documents, including but not limited to, certificates
of insurance and endorsement, in accordance with the Project documents.
BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco
authorizes a total Project construction budget of $1,038,644.40 and authorizes the City Manager to
utilize the unspent amount of the entire Project, if necessary, towards additional construction
contingency and construction management and administration budget.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the
agreement in substantially the same form as Exhibit A and any other related documents on behalf of the
City upon timely submission by Murphy Industrial Coatings, Inc. of the signed contract and all other
documents, subject to approval as to form by the City Attorney.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to take any other
required actions consistent with the intent of this resolution that does not materially increase the City's
obligations.
At a meeting of the City Council on 5/26/2021, a motion was made by Vice Mayor Nagales,
seconded by Councilmember Flores, that this Resolution be approved. The motion passed.
City of South San Francisco Page 2 Printed on 5/27/21
File Number: 21-373
Enactment Number: RES 99-2021
Yes: 5 Mayor Addiego, Vice Mayor Nagales, Councilmember Nicolas, Councilmember
Coleman, and Councilmember Flores
Attest by A �/ I
R sa Govea Acosta, City Clerk
City of South San Francisco Page 3
Exhibit A – Construction Contract
CITY OF SOUTH SAN FRANCISCO
ENGINEERING DIVISION
FORM OF AGREEMENT FOR PUBLIC IMPROVEMENTS
TABLE OF CONTENTS
Page No.
1. Scope of Work A-1
2. The Contract Documents A-1
3. Equipment - Performance of Work A-2
4. Contract Price A-2
5. Rights of City to Increase Working Days A-2
6. Option of City to Terminate Agreement in Event
of Failure to Complete Work A-2
7. Termination of Contract for Convenience A-3
8. Performance by Sureties A-5
9. Hold-Harmless Agreement and Contractor's Insurance A-6
10. Insurance A-6
11. Proof of Carriage of Insurance A-7
12. Provisions Cumulative A-8
13. Notices A-8
14. Interpretation A-8
Attachment A – Escrow Agreement for Security Deposits in Lieu of Retention
Page A-1 of 9
FORM OF AGREEMENT FOR PUBLIC IMPROVEMENTS
THIS AGREEMENT made and entered into this 26th , day of May 2021, between the CITY
OF SOUTH SAN FRANCISCO, a municipal corporation and political subdivision of the State of
California, hereinafter called “CITY”, and Murphy Industrial Coatings, Inc., hereinafter called
“CONTRACTOR”1.
W I T N E S S E T H:
WHEREAS, City has taken appropriate proceedings to authorize construction of the public
work and improvements herein provided and execution of this contract.
WHEREAS, a notice was duly published for bids for the contract for the improvements
hereinafter described.
WHEREAS, on May 26, 2021, notice duly given, the City Council (“Council”) of said City
awarded the contract for the construction of the improvements hereinafter described to the
Contractor, which Contractor said Council found to be the lowest responsible bidder for said
improvements.
WHEREAS, City and Contractor desire to enter into this agreement for the construction of
said improvements pursuant to the terms, definitions, and conditions set forth in the General
Provisions and other Contract Documents.
IT IS AGREED as follows:
1. Scope of Work. Contractor shall perform the Work described briefly as follows:
The Work consists of the furnishing of all labor, materials, tools, equipment, and services
necessary for the construction of the WATER QUALITY CONTROL PLANT AND PUMP
STATION COATING AND CORROSION PROTECTION PROJECT PHASE Two and Three
in accordance with the Contract Documents.
Also included are any such other items or details not mentioned above that are required by
the Contract Documents, which are to be constructed or furnished and installed as shown on the
plans, as specified herein and as directed by the Engineer.
The aforementioned improvements are further described in the "Contract Documents"
hereinafter referred to.
2. The Contract Documents. The complete Contract consists of the following
documents:
1. 1The term "Contractor" as used herein is employed without distinction as to either number or gender and shall
include whenever the context shall permit all agents, representatives, employees, servants, subcontractors and
business or social invitees.
Page A-2 of 9
(A) Notice Inviting Bids
(B) Part I – Submitted Proposal (as accepted)
(C) This Agreement, including Contractor’s Payment Bond, Faithful
Performance Bond and Guaranty Bond.
(D) Part II – General Conditions
(E) Part III – Special Provisions: Special Conditions and Technical
Specifications, including State Standard Specifications dated 2018, sections
10-99, as revised in Revised Standard Specifications (RSS) April 20, 2018
(F) Part IV – Project Plans, approved March 2021
(G) Administrative subsections of the State Standard Specifications dated 2018,
as specifically referenced in contract Parts I-IV and as revised in RSS dated
April 20, 2018
All rights and obligations of City and Contractor are fully set forth and described in the contract
documents.
All of the above-named documents are intended to cooperate, so that any work called for
in one and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in
all said documents. The documents comprising the complete contract will hereinafter be referred
to as “the Contract Documents.”
3. Equipment - Performance of Work. Contractor shall furnish all tools, equipment,
apparatus, facilities, labor, and materials necessary to perform and complete in a good and
workmanlike manner the Work of general construction as called for, and for the manner designated
in, and in strict conformity with, the plans and specifications for said Work entitled:
WQCP AND PUMP STATION COATING AND
CORRISION PROTICTION PROJECT PHASE – TWO AND THREE
PROJECT NO. ss1307&ss1901, BID NO. 2648
The equipment, apparatus, facilities, labor, and materials shall be furnished and said Work
performed and completed as required in said plans and specifications under the direction and
supervision and subject to the approval of the Engineer of said City or the Engineer’s designated
assistant.
4. Contract Price. City shall pay, and Contractor shall accept, in full payment for the
Work agreed to be done the sum of eight hundred sixty-five thousand five hundred thirty-seven
dollar ($865,537.00). Said price is determined by the lump sum price contained in Contractor's
bid proposal (“Bid”). The lump sum price and unit prices are set forth in the completed Bid forms
attached hereto and made a part hereof as if set forth herein verbatim. In the event work is
performed or materials furnished in addition to those set forth in Contractor's bid and the
specifications herein, such work and materials will be paid for at the unit prices therein contained.
Said amount shall be paid in installments as hereinafter provided.
Page A-3 of 9
5. Rights of City to Increase Working Days. If such Work is not completed within
the time specified, the Engineer shall have the right to increase the number of working days in the
amount it may determine will best serve the interest of the City. If it desires to increase said
number of working days, it shall have the further right to charge to Contractor and deduct from the
final payment for the Work the actual cost of engineering, inspection, superintendence, and other
overhead expenses which are directly chargeable to Contractor and which accrue during the period
of such extension, except that the cost of the final service and preparation of the final estimates
shall not be included in such charges, provided, however, that no extension of time for the
completion of such Work shall be allowed unless at least twenty (20) calendar days prior to the
time herein fixed for the completion thereof or the time fixed by the Engineer for such completion
as extended, Contractor shall have filed application for extension thereof, in writing with the
Engineer.
6. Option of City to Terminate Agreement in Event of Failure to Complete Work. If
at any time in the opinion of the Engineer, the Contractor has refused or failed to prosecute the
Work or any severable part thereof, with such diligence as will insure its work, or any completion
within the time specified, or any extensions thereof, or shall have failed to complete said work
within such time, or if Contractor should be adjudged a bankrupt, or if Contractor should make a
general assignment for the benefit of Contractor's creditors, or if a receiver should be appointed in
the event of Contractor's insolvency, or if Contractor, or any Subcontractor, should violate any of
the provisions of this Agreement, the Engineer may give written notice to Contractor, and
Contractor's sureties of its intention to terminate this Agreement, such notice to contain the reasons
for such intention to terminate this Agreement, and unless within five calendar (5) days after the
serving of such notice, such violation shall cease and satisfactory arrangements for the correction
thereof be made, this Agreement may, at the option of City, upon expiration of said time, cease
and terminate. Any excess of cost arising therefrom over and above the contract price will be
charged against the Contractor and the Contractor’s sureties who will be liable therefore. In the
event of such termination, all money due the Contractor or retained under the terms of this contract
shall be forfeited to the City; but such forfeiture will not release the Contractor or the Contractor’s
sureties from liability or failure to fulfill the contract. The Contractor and the Contractor’s sureties
will be credited with the amount of money so forfeited toward any excess of cost over and above
the contract price, arising from the suspension termination of the operations of the contract and the
completion of the Work by the City as above provided, and the Contractor will be so credited with
any surplus remaining after all just claims for such completion have been paid.
In the determination of the question whether there has been any such noncompliance with
the contract as to warrant the suspension termination or annulment thereof, the decision of the
Engineer shall be binding on all parties to the contract.
7. Termination of Contract for Convenience. The City also reserves the right to
terminate the contract at any time upon a determination by the Engineer in the Engineer's sole
discretion that termination of the contract is in the best interest of the City. If the City elects to
terminate the contract for convenience, the termination of the contract and the total compensation
payable to the Contractor shall be governed by the following:
(A) The City will issue the Contractor a written notice signed by the Engineer, specifying that
the contract is terminated. Upon receipt of said written notice, the Contractor will be relieved of
Page A-4 of 9
further responsibility for damage to the Work (excluding materials) as specified in Section VII-
17, "Contractor's Responsibility for the Work," of the General Conditions and, except as otherwise
directed in writing by the Engineer, the Contractor shall:
(1) Stop all work under the contract except that specifically directed to be completed
prior to acceptance.
(2) Perform work the Engineer deems necessary to secure the project for termination.
(3) Remove equipment and plant from the site of the Work.
(4) Take such action as is necessary to protect materials from damage.
(5) Notify all subcontractors and suppliers that the contract is being terminated and that
their contracts or orders are not to be further performed unless otherwise authorized
in writing by the Engineer.
(6) Provide the Engineer with an inventory list of all materials previously produced,
purchased or ordered from suppliers for use in the Work and not yet used in the
Work, including its storage location, and such other information as the Engineer
may request.
(7) Dispose of materials not yet used in the Work as directed by the Engineer. It shall
be the Contractor's responsibility to provide the City with good title to all materials
purchased by the City hereunder, including materials for which partial payment has
been made as provided in Section IX-2, “Progress Payments,” of the General
Conditions and with bills of sale or other documents of title for such materials.
(8) Subject to the prior written approval of the Engineer, settle all outstanding liabilities
and all claims arising out of subcontracts or orders for materials terminated
hereunder. To the extent directed by the Engineer, the Contractor shall assign to
the City all the right, title, and interest of the Contractor under subcontracts or
orders for materials terminated hereunder.
(9) Furnish the Engineer with the documentation required to be furnished by the
Contractor under the provisions of the contract, including, on projects as to which
Federal and State funds are involved, all documentation required under the Federal
and State requirements included in the contract.
(10) Take such other actions as the Engineer may direct.
(B) Acceptance of the contract as hereinafter specified shall not relieve the Contractor of
responsibility for damage to materials. The Contractor shall continue to be responsible for damage
to materials after issuance of the Notice of Termination, except as follows:
(1) The Contractor’s responsibility for damage to materials for which partial payment
has been made as provided in Section IX-2, “Progress Payments,” of the General
Page A-5 of 9
Conditions and for materials furnished by the City for use in the Work and unused
shall terminate when the Engineer certifies that such materials have been stored in
the manner and at the locations the Engineer has directed.
(2) The Contractor’s responsibility for damage to materials purchased by the City
subsequent to the issuance of the notice that the contract is to be terminated shall
terminate when title and delivery of such materials has been taken by the City.
(3) When the Engineer determines that the Contractor has completed the Work under
the contract directed to be completed prior to termination and such other work as
may have been ordered to secure the project for termination, the Contractor will
recommend that the Engineer formally accept the contract to the extent performed,
and immediately upon and after such acceptance by the Engineer, the Contractor
will not be required to perform any further Work thereon and shall be relieved of
the Contractor's contractual responsibilities for injury to persons or property which
occurs after the formal acceptance of the project by the Engineer.
(C) Termination of the contract shall not relieve the surety of its obligation for any just claims
arising out of the work performed.
(D) The total compensation to be paid to the Contractor shall be determined by the Engineer
on the basis of the following:
(1) The reasonable cost to the Contractor, without profit, for all work performed under
the contract, including mobilization, demobilization and work done to secure the
project for termination. In determining the reasonable cost, deductions will be
made for the cost of materials to be retained by the Contractor, amounts realized by
the sale of materials, and for other appropriate credits against the cost of the work.
When, in the opinion of the Engineer, the cost of a contract item of work is
excessively high due to costs incurred to remedy or replace defective or rejected
work, the reasonable cost to be allowed will be the estimated reasonable cost of
performing such work in compliance with the requirements of the plans and
specifications and the excessive actual cost shall be disallowed.
(2) A reasonable allowance for profit on the cost of the work performed as determined
under Subsection (1), provided the Contractor establishes to the satisfaction of the
Engineer that it is reasonably probable that the Contractor would have made a profit
had the contract been completed and provided further, that the profit allowed shall
in no event exceed four (4) percent of said cost.
(3) The reasonable cost to the Contractor of handling material returned to the vendor,
delivered to the City, or otherwise disposed of as directed by the Engineer.
(4) A reasonable allowance for the Contractor’s administrative costs in determining the
amount payable due to termination of the contract.
(5) A reasonable credit to the City for defective or incomplete work not corrected.
All records of the Contractor and subcontractors necessary to determine compensation in
accordance with the provisions of this Section 5 shall be open to inspection or audit by
Page A-6 of 9
representatives of the City at all times after issuance of the Notice of Termination and for a period
of three (3) years, thereafter, and such records shall be retained for that period.
After acceptance of the Work by the Engineer, the Engineer may make payments on the
basis of interim estimates pending issuance of the Final Estimate in accordance with Section IX-
7, “Final Payment,” of the General Conditions when, in the Engineer's opinion, the amount thus
paid, together with all amounts previously paid or allowed, will not result in total compensation in
excess of that to which the Contractor will be entitled. All payments, including payment upon the
Final Estimate shall be subject to deduction for prior payments and amounts, if any, to be kept or
retained under the provisions of the contract.
If this contract is terminated by the City for cause, and it is later determined that the proper
basis for a termination for cause did not exist, the termination shall be deemed to have been a
termination for convenience and governed by the terms of this contract dealing with such
termination.
If the contract is terminated by the City for cause or convenience, such termination shall
neither act as a waiver by the City of its right to require the Contractor to correct defects in the
Work performed by the Contractor nor void any warranties applicable to the Work performed
under the contract.
The provisions of this Section 5 shall be included in all subcontracts.
In the event of conflict between the termination provisions of this Section 8 and any other
provision or the contract, this Section 5 shall prevail.
8. Performance by Sureties. In the event of any termination as herein before provided,
City shall immediately give written notice thereof to Contractor and Contractor's sureties and the
sureties shall have the right to take over and perform the Agreement, provided, however, that if
the sureties, within five (5) working days after giving them said notice of termination, do not give
the City written notice of their intention to take over the performance of the Agreement and do not
commence performance thereof within five (5) working days after notice to the City of such
election, 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 the
sureties shall be liable to City for any excess cost or damages occasioned City thereby; and, in
such event, City may, without liability for so doing, take possession of and utilize in completing
the Work such materials, appliances, plant, and other property belonging to Contractor as may be
on the site of the Work and necessary therefore. Should Contractor contract in an individual
capacity, the surety bond shall contain the following provision: “Should Contractor contract in the
Contractor’s individual capacity, the death of the Contractor shall not relieve the surety of its
obligations.”
9. Hold-Harmless Agreement and Contractor's Insurance. Contractor agrees to, and
shall, hold City, its elective and appointive boards, officers, agents, and employees harmless from
any liability for damage or claims for damage for personal injury, including death, as well as from
claims for property damage which may arise from Contractor's or any of Subcontractor's
Page A-7 of 9
operations under this Agreement, whether such operations be by Contractor or by any
Subcontractor or Subcontractors, or by any one or more persons directly or indirectly employed
by, or acting as agent for, Contractor or any Subcontractor or Subcontractors. Contractor agrees
to, and shall, defend City and its elective and appointive boards, officers, agents, and employees
from any suits or actions at law or in equity for damages caused, or alleged to have been caused,
by reason of any of the aforesaid operations, provided as follows:
(A) The City does not, and shall not, waive any rights against Contractor which it may
have by reason of the aforesaid hold-harmless agreement, because of the acceptance by
City, or the deposit with City by Contractor, of any of the insurance policies hereinafter
described in Paragraph 15, “Insurance” hereof.
(B) That the aforesaid hold-harmless agreement by Contractor shall apply to all
damages and claims for damages of every kind suffered, or alleged to have been suffered,
by reason of any of the aforesaid operations of Contractor or any Subcontractor, regardless
of whether or not such insurance policies shall have been determined to be applicable to
any of such damages or claims for damages.
10. Insurance. The Contractor shall take out and maintain during the life of this
Agreement the following policies of insurance:
(A) Workers' Compensation and Employers' Liability Insurance providing full
statutory coverage.
In signing this Agreement, the Contractor makes the following certification,
required by Section 1861 of the California Labor Code:
"I am aware of the provisions of Section 3700 of the California Labor Code
which require every employer to be insured against liability for Workers'
Compensation or to undertake self-insurance in accordance with the
provisions of that Code, and I will comply with such provisions before
commencing the performance of the work of this contract".
(B) Comprehensive General Liability Insurance.
Public Liability Insurance (includes premises, elevator - if applicable, products,
completed operations, personal injury and contractual):
(1) Bodily Injury Liability:
$ 500,000 each person $1,000,000 each occurrence
(2) Property Damage Liability [includes XCU (explosion, collapse, and underground
damage); water damage and broad form property damage or third party liability]:
$ 500,000 per occurrence
(C) Comprehensive Automobile Liability Insurance (includes owned, non-
owned, and hired vehicles):
Page A-8 of 9
(1) Bodily Injury Liability:
$ 500,000 per person $1,000,000 each occurrence
(2) Property Damage Liability:
$ 500,000 each occurrence
(D) It is agreed that the insurance required by Subsections B and C, in an
aggregate amount of not less than ONE MILLION FIVE HUNDRED THOUSAND DOLLARS
($1,500,000), shall be extended to include as additional insured the City of South San Francisco,
its elective and appointive boards, commissions, officers, agents, employees, with respect to
operations performed by the Contractor, as described herein. Evidence of this insurance described
above shall be provided to City upon execution of this Agreement and shall be subject to approval
of the City Attorney as to form, amount, and carrier. The policy of insurance shall also contain a
provision indicating that such insurance shall not be reduced or cancelled except upon thirty (30)
calendar days written notice to City. In addition, the following endorsement shall be made on said
policy of insurance:
"The following are named as additional insured on the above policies: The City of
South San Francisco, its elective and appointive boards, officers, agents, and
employees."
"Notwithstanding any other provision in this policy, the insurance afforded
hereunder to the City of South San Francisco shall be primary as to any other
insurance or re-insurance covering or available to the City of South San Francisco,
and such other insurance or reinsurance shall not be required to contribute to any
liability or loss until and unless the approximate limit of liability afforded hereunder
is exhausted."
The above requirements that the City be named as additional insured, that the
insurance shall be primary to any other, and that the insurance not be cancelled without notice,
shall be provided in the form of an endorsement signed by an authorized representative of the
insurance company providing coverage, who shall declare his or her authority to sign on behalf of
the insurer.
11. Proof of Carriage of Insurance. Contractor shall furnish City through the Engineer,
concurrently with the execution hereof, with satisfactory proof of carriage of the insurance
required and that each carrier shall give City at least thirty (30) calendar days prior notice of the
cancellation or change of any policy during the effective period of this contract. Further, if the
Contractor’s insurance policy includes a self-insured retention that must be paid by a named
insured as a precondition of the insurer’s liability, or which has the effect of providing that
payments of the self-insured retention by others, including additional insureds or insurers do not
serve to satisfy the self-insured retention, such provisions must be modified by special
endorsement so as to not apply to the additional insured coverage required by this agreement so as
to not prevent any of the parties to this agreement from satisfying or paying the self-insured
Page A-9 of 9
retention required to be paid as a precondition to the insurer’s liability. Additionally, the
certificates of insurance must note whether the policy does or does not include any self-insured
retention and also must disclose the deductible.
12. Provisions Cumulative. The provisions of this Agreement are cumulative, and in
addition to and not in limitation of, any other rights or remedies available to City.
13. Notices. All notices shall be in writing and delivered in person or transmitted by
certified mail, postage prepaid.
Notices required to be given to City shall be addressed as follows:
City Clerk
City Hall, 400 Grand Avenue
South San Francisco, California 94080
Notices required to be given to Contractor shall be addressed as follows:
________________________________________________________________________
__
________________________________________________________________________
__
Notices required to be given sureties of Contractor shall be addressed as follows:
________________________________________________________________________
__
________________________________________________________________________
__
Notices required to be given to the Escrow Agent of Contractor, if any, shall be addressed
as follows:
________________________________________________________________________
__
________________________________________________________________________
__
Page A-10 of 9
14. Interpretation. As used herein, any gender includes each other gender, the singular
includes the plural, and vice versa.
IN WITNESS WHEREOF, two (2) identical counterparts of this Agreement, consisting of
twelve (12) pages (being pages A-1 through A-12), each of which counterparts shall for all
purposes be deemed an original of said Agreement, have been duly executed by the parties
hereinabove named, on the day and year first hereinabove written.
ATTEST: CITY: City of South San Francisco,
a municipal corporation
_______________________________ By:
_____________________________
City Clerk Mike Futrell, City Manager
CONTRACTOR:_____________________
__
__________________________________
ATTEST: By:_______________________________
(If Contractor is an individual, so state.
_____________________________ If Contractor is a Corporation, a
corporate seal or signatures of the President
or Vice President and the Secretary
Treasurer are required).
WATER QUALITY CONTROL PLANT AND PUMP STATION COATING AND
CORRASION PROTECTION PROJECT PHASE 2 &3
Project No. ss1307 & ss1901, Bid No.2648
ATTACHMENT A
ESCROW AGREEMENT FOR
SECURITY DEPOSITS IN LIEU OF RETENTION
THIS ESCROW AGREEMENT is made and entered into by and between the City
of South San Francisco whose address is 400 Grand Ave., P.O. Box 711, South San
Francisco, CA 94083, hereinafter referred to as "City," and Murphy Industrial Coatings,
Inc. ,whose address is 2704 Gundry Ave, Signal Hill, CA 90755, hereinafter called
“Contractor” and_______________________________, whose address is
___________________________________________________________________,
hereinafter called “Escrow Agent.”
For the consideration hereinafter set forth, the Owner, Contractor, and Escrow Agent agree
as follows:
1. Pursuant to Section 22300 of the Public Contract Code of the State of
California, Contractor has the option to deposit securities with Escrow Agent as a substitute
for retention earnings required to be withheld by Owner pursuant to the Construction
Contract entered into between the Owner and Contractor for Water Quality Control Plant
And Pump Station Coating And Corrasion Protection Project Phase -1 in the amount of six
hundred ninety-one thousand, one hundred ninety five dollars and seventy nine cents
($865,537.00) dated May 26, 2021 (hereinafter referred to as the “Contract”). Alternately,
on written request of the Contractor, the Owner shall make payments of the retention
earnings directly to the Escrow Agent. When the Contractor deposits the securities as a
substitute for Contract earnings, the Escrow Agent shall notify the Owner within 10
working days of the deposit. The market value of the securities at the time of the
substitution shall be at least equal to the cash amount then required to be withheld as
retention under the terms of the Contract between the Owner and Contractor. Securities
shall be held in the name of _______________________________ and shall designate the
Contractor as the beneficial owner.
2. The Owner shall make progress payments to the Contractor for those funds
which otherwise would be withheld from progress payments pursuant to the Contract
provisions, provided that the Escrow Agent holds securities in the form and amount
specified above.
3. When the Owner makes payment of retentions earned directly to the Escrow
Agent, the Escrow Agent shall hold them for the benefit of the Contractor until the time
that the escrow created under this contract is terminated. The Contractor may direct the
investment of the payments into securities. All terms and conditions of this agreement and
the rights and responsibilities of the parties shall be equally applicable and binding when
the Owner pays the Escrow Agent directly.
WATER QUALITY CONTROL PLANT AND PUMP STATION COATING AND
CORRASION PROTECTION PROJECT PHASE 2 &3
Project No. ss1307 & ss1901, Bid No.2648
4. Contractor shall be responsible for paying all fees for the expenses incurred
by Escrow Agent in administering the Escrow Account and all expenses of the Owner.
These expenses and payment terms shall be determined by the Owner, Contractor, and
Escrow Agent.
5. The interest earned on the securities or the money market accounts held in
escrow and all interest earned on that interest shall be for the sole account of Contractor
and shall be subject to withdrawal by Contractor at any time and from time to time without
notice to the Owner.
6. Contractor shall have the right to withdraw all or any part of the principal
in the Escrow Account only by written notice to Escrow Agent accompanied by written
authorization from the Owner to the Escrow Agent that Owner consents to the withdrawal
of the amount sought to be withdrawn by Contractor.
7. The Owner shall have a right to draw upon the securities in the event of
default by the Contractor. Upon seven day’s written notice to the Escrow Agent from the
Owner of the default, the Escrow Agent shall immediately convert the securities to cash
and shall distribute the cash as instructed by the Owner.
8. Upon receipt of written notification from the Owner certifying that the
Contract is final and complete, and that the Contractor has complied with all requirements
and procedures applicable to the Contract, Escrow Agent shall release to Contractor all
securities and interest on deposit less escrow fees and charges of the Escrow Account. The
escrow shall be closed immediately upon disbursement of all moneys and securities on
deposit and payments of fees and charges.
9. Escrow Agent shall rely on the written notifications from the Owner and the
Contractor pursuant to Sections (5) to (8), inclusive, of this Agreement, and the Owner and
Contractor shall hold Escrow Agent harmless from Escrow Agent’s release and
disbursement of the securities and interest as set forth above.
10. The names of the persons who are authorized to give written notice or to
receive written notice on behalf of the Owner and on behalf of Contractor in connection
with the foregoing, and exemplars of their respective signatures are as follows:
On behalf of Owner: On behalf of Contractor:
__________________________________
__________________________________
Title Title
__________________________________
__________________________________
Name Name
WATER QUALITY CONTROL PLANT AND PUMP STATION COATING AND
CORRASION PROTECTION PROJECT PHASE 2 &3
Project No. ss1307 & ss1901, Bid No.2648
__________________________________
__________________________________
Signature Signature
__________________________________
__________________________________
Address Address
On behalf of Escrow Agent:
__________________________________
Title
__________________________________
Name
__________________________________
Signature
__________________________________
Address
At the time the Escrow Account is opened, the Owner and Contractor shall deliver
to the Escrow Agent a fully executed counterpart of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement by their
proper officers on the date first set forth above.
Owner: Contractor:
__________________________________
__________________________________
Title Title
__________________________________
__________________________________
Name Name
WATER QUALITY CONTROL PLANT AND PUMP STATION COATING AND
CORRASION PROTECTION PROJECT PHASE 2 &3
Project No. ss1307 & ss1901, Bid No.2648
__________________________________
__________________________________
Signature Signature
Approved as to form: Attest:
_____________________________________
__________________________________
City Attorney Date City Clerk