HomeMy WebLinkAboutReso 49-2019 (19-33)Aga h. City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
City Council
' Resolution: RES 49-2019
File Number: 19-33 Enactment Number: RES 49-2019
RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO
FLATIRON WEST, INC. OF BENICIA, CALIFORNIA FOR THE
WQCP SODIUM HYPOCHLORITE STORAGE TANK
REPLACEMENT PROJECT (PROJECT NO. SS1601) IN AN
AMOUNT NOT TO EXCEED $1,682,000 AND AUTHORIZING A
TOTAL CONSTRUCTION BUDGET OF $2,020,000.
WHEREAS, The City of South San Francisco operates the South San Francisco/San Bruno Water
Quality Control Plant (WQCP or Plant), a critical facility located at 195 Belle Air Road that provides
secondary wastewater treatment for the Cities of South San Francisco and San Bruno, Town of Colma,
and portions of City of Daly City, a population of over 110,000; and
WHEREAS, treatment processes call for dosing the wastewater with 12.5% sodium hypochlorite
disinfectant solution at various points in the treatment train; and
WHEREAS, the existing disinfection system, consisting of three 8,300 gallon vertical
fiberglass -reinforced plastic sodium hypochlorite storage tanks with a spill containment enclosure,
metering pumps, and a pump room control building, was constructed in 1996 and has reached the end of
its operational life; and
WHEREAS, due to the corrosive properties of the disinfectant, OSHA code requirements require
upgrading the sodium hypochlorite process piping and emergency eyewash/shower stations; and
WHEREAS, City commissioned Woodard & Curran to design the tank replacement project which
consists of providing and replacing the three tanks storage tanks, various metering pumps, and fused
plastic process piping; and providing and installing heated safety eyewash stations; and
WHEREAS, the City advertised a notice inviting new bids for the project on February 28, 2019 and on
April 2, 2019, received two (2) bids in response; and
WHEREAS, Flatiron West, Inc. of Benicia, California submitted the lowest responsive bid and was
determined to be a responsible bidder; and
WHEREAS, this project is funded by the sanitary sewer fund and the project is included in the City of
South San Francisco's Fiscal Year 2018-19 Capital Improvement Program (Project No. ssl601).
WHEREAS, approval of Budget Amendment number 19.050 is requested to transfer an additional
$1,320,000 from the Sewer Enterprise Fund into the project budget to cover this planned expenditure.
City of South San Francisco Page 1
File Number: 19-33
Enactment Number: RES 49-2019
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,
for the WQCP Sodium Hypochlorite Project to Flatiron West, Inc., of California, in an amount not to
exceed $1,682,000 conditioned on Flatiron West, Inc. 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 the City Council authorizes a total Project construction budget of
$2,020,000 and authorizes the City Manager to utilize unspent amount of the total Project, if necessary,
towards additional construction contingency budget.
BE IT FURTHER RESOLVED the City Council authorizes the Finance Department to establish the
Project Budget consistent with the information contained in the staff report.
BE IT FURTHER RESOLVED the City Council approves Budget Amendment 19.050, appropriating
$1,320,000 in Sewer Enterprise funds to this project and amending the Fiscal Year 2018-19 Capital
Improvement Program.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the agreement and
any other related documents on behalf of the City upon timely submission by Flatiron West, Inc. of the
signed contract and all other documents, subject to approval by the City Attorney.
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to take any other
related actions consistent with the intention of the resolution.
E3
At a meeting of the Special City Council on 4/24/2019, a motion was made by Mark Addiego, seconded by
Buenaflor Nicolas, that this Resolution be approved. The motion passed.
Yes: 5 Councilmember Nagales, Mayor Matsumoto, Councilmember Addiego,
Councilmember Nicolas, and Vice Mayor Garbarino
Attest by
d'044-
/osa Govea Acosta
City of South San Francisco Page 2
CITY OF SOUTH SAN FRANCISCO
WQCP SODIUM HYPOCHLORITE STORAGE TANK REPLACEMENT
ENGINEERING FILE NO. SS-15-1, PROJECT NO. ss1601, BID NO. 2620
FORM OF AGREEMENT FOR PUBLIC IMPROVEMENTS
INDEX
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-8
12. Provisions Cumulative A-8
13.Notices A-8
14. Interpretation A-8
Attachment A – Escrow Agreement for Security Deposits in Lieu of Retention A-10
Exhibit A
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
A-1
FORM OF AGREEMENT FOR PUBLIC IMPROVEMENTS
THIS AGREEMENT made and entered into this 24th, day of April, 2019, between the CITY OF
SOUTH SAN FRANCISCO, a municipal corporation and political subdivision of the State of California,
hereinafter called “CITY”, and Flatiron West, 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 April 24, 2019, 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 WQCP Sodium Hypochlorite Storage Tank Replacement
Project; 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:
(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.
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.
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
A-2
(D) Part II – General Conditions. Note that the General Conditions make the
Caltrans Standard Specifications and Standard Plans, dated 2015, part of the
contract documents.
(E) Part III – Special Provisions: Contains Special Conditions and Technical
Specifications
(F) Part IV – Contract Drawings, prepared by Woodard and Curran, dated February
2019.
All rights and obligations of City and Contractor are fully set forth and described in the
contract documents.
3. 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.”
4. 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 SODIUM HYPOCHLORITE TANK REPLACEMENT.
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.
5. Contract Price. City shall pay, and Contractor shall accept, in full payment for
the Work agreed to be done the sum of One Million Six Hundred and Eighty Two Thousand
Dollar ($1,682,000). 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.
6. 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.
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
A-3
7. 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.
8. 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 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.
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
A-4
(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 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:
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
A-5
(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 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.
9. 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
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
A-6
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.”
10. 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
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.
11. 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".
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
A-7
(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):
(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.
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
A-8
12. 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
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.
13. 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.
14. 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:
_________________________________________________________________________
15. Interpretation. As used herein, any gender includes each other gender, the
singular includes the plural, and vice versa.
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
A-9
IN WIT NESS 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).
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
A-10
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 ________________________________________,whose address is
___________________________________________________________, 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
__________________ in the amount of _______________dollars ($_____) dated ___________ (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.
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.
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
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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
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.
City of South San Francisco Bid No. 2620
WQCP Sodium Hypochlorite Tank Replacement City Project ss1601
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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
Signature Signature
Approved as to form: Attest:
City Attorney Date City Clerk