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HomeMy WebLinkAboutC-6205 - Contract for the Improvement of Public Work HVAC Unit Replacement in U CONTRACT FOR THE IMPROVEMENT OF PUBLIC WORK HVAC UNIT REPLACEMENT WITH CLIMATE AIR MASTERS, INC. THIS CONTRACT FOR THE IMPROVEMENT OF PUBLIC WORK ("Contract") is made and entered into as of this 28th day of July, 2015 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and Climate Air Masters, Inc., a California corporation ("Contractor'), whose principal place of business is 1139 N. Anaheim Boulevard, Anaheim, California 92801, and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City owns two (2) residential dwelling units at the Balboa Yacht Basin, which were constructed in the 1950's. C. City desires to engage Contractor to: 1. Assess the existing mechanical piping and duct systems for re-use suitability. 2. Assess the condition and capacity of the existing electrical circuitries and panels for new HVAC loading compatibility. 3. Obtain no-fee building permit(s), as necessary. 4. Remove and dispose of the existing heating units. 5. Remove and dispose of piping and ducts that cannot be reused, including all work and costs for asbestos removal (if any). 6. Install new electrical conduits, wires, circuitry, breakers, panels, ground rods, and other components as needed for a functional system. 7. Make all necessary cutting, patching, refinishing, painting, and all necessary installation, construction, and repair work. 8. Construct equipment pads, as needed. 9. Furnish and install needed new ducting and best-suited HVAC equipment including new thermostats and eAEi-eefres+en coil t4a coating. 10.Test and complete air balance. 11.Provide 3-year 100% parts and labor extended warranty on HVAC equipment, as more fully described in the Contract Documents ("Project'). D. City has solicited and received a proposal from Contractor and desires to retain Contractor to render services under the terms and conditions set forth in this Contract. E. Contractor has examined the location of all proposed work, carefully reviewed and evaluated the specifications set forth by City for the Project, and is familiar with all conditions relevant to the performance of services and has committed to perform all work required for the price specified in this Contract over a period of 45 calendar days commencing upon issuance of the "Notice to Proceed". NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Contract shall commence on the Effective Date and shall terminate on 12/31/2015, unless terminated earlier as provided for herein. 2. SCOPE OF WORK 2.1. Contract Documents. The complete Contract for the Project includes all of the following documents: Request for Proposals/Bids, attached hereto as Exhibit A; Proposal, attached hereto as Exhibit B; Insurance Requirements, attached hereto as Exhibit C; all Project Permits; the Standard Special Provisions and Standard Drawings; Plans and Special Provisions for Contract No. 6205; Standard Specifications for Public Works Construction (current adopted edition and all supplements); and this Contract, and all modifications and amendments thereto (collectively the "Contract Documents"). Exhibits A, B, and C, and all other named Contract Documents, are incorporated herein by reference. The Contract Documents comprise the sole agreement between the parties as to the subject matter therein. Any representations or agreements not specifically contained in the Contract Documents are null and void. Any amendments must be made in writing, and signed by both parties in the manner specified in the Contract Documents. 2.2. Scope of Work. Contractor shall perform everything required to be performed, and shall provide and furnish all the labor, materials, necessary tools, expendable equipment and all utility and transportation services required for the Project as identified in the Contract Documents ("Work" or "Services"). 2.3. All of the Work to be performed and materials to be furnished shall be in strict accordance with the provisions of the Contract Documents. Contractor is required to perform all activities, at no extra cost to City, which are reasonably inferable from the Contract Documents as being necessary to produce the intended results. Climate Air Masters, Inc. Page 2 3. TIME OF PERFORMANCE 3.1. Time is of the essence in the performance of Work under this Contract and Contractor shall complete the Work within 45 calendar days from the date of issuance of the "Notice to Proceed." Failure to complete the Work in the time allotted may result in termination of the Contract by City and assessment of damages as outlined in Section 3.2. 3.2. The parties agree that it is extremely difficult and impractical to determine and fix the actual damages that City will sustain should Contractor fail to complete the Project within the time allowed. Should Contractor fail to complete the Work called for in this Contract within 45 calendar days from the date of issuance of the Notice to Proceed, Contractor agrees to the deduction of liquidated damages in the sum of Two Hundred Fifty Dollars ($250.00) for each calendar day beyond the date scheduled for completion. 4. COMPENSATION 4.1. As full compensation for the performance and completion of the Project as required by the Contract Documents, City shall pay to Contractor and Contractor accepts as full payment the sum of Fifteen Thousand Five Hundred Sixty Five Dollars ($15,565.00), less any money deducted pursuant to Section 3.2. Contractor shall not receive any additional compensation unless approved in writing in advance by City's Project Administrator as defined herein. City shall make full payment to Contractor no later than thirty (30) calendar days after acceptance of the Work by City. 4.2. This compensation includes: 4.2.1. Any loss or damage arising from the nature of the Work; 4.2.2. Any loss or damage arising from any unforeseen difficulties or obstructions in the performance of the Work; and 4.2.3. Any expense incurred as a result of any suspension or discontinuance of the Work, but excludes any loss resulting from earthquakes of a magnitude in excess of 3.5 on the Richter Scale and tidal waves, including tsunamis, and which loss or expense occurs prior to acceptance of the Work by City. 5. PROJECT MANAGER Contractor shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the term of the Contract. Contractor has designated Kevin Burdette to be its Project Manager. Contractor shall not remove or reassign the Project Manager without the prior written consent of City. City's approval shall not be unreasonably withheld. Climate Air Masters, Inc. Page 3 6. ADMINISTRATION This Contract shall be administered by the Public Works Department. City's Public Works Director, or designee, shall be the Project Administrator and shall have the authority to act for City under this Contract. The Project Administrator or designee shall represent City in all matters pertaining to the Services to be rendered pursuant to this Contract. 7. TYPE AND INSTALLATION OF MATERIALS/STANDARD OF CARE 7.1. Contractor shall use only the standard materials and equipment as described in the Contract Documents in performing Work under this Contract. Any deviation from the materials or equipment described in the Contract Documents shall not be utilized unless approved in advance by the Project Administrator. 7.2. Contractor shall comply with the terms and conditions of the Contract Documents. 7.3. All of the Work shall be performed by Contractor or under Contractor's supervision. Contractor represents that it possesses the personnel required to perform the Services required by this Contract, and that it will perform all Work in a manner commensurate with the highest professional standards. 7.4. All Services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. By delivery of completed Work, Contractor certifies that the Work conforms to the requirements of this Contract, all applicable federal, state and local laws, and the highest professional standard. 7.5. Contractor represents and warrants to City that it has, shall obtain, and shall keep in full force and effect during the term hereof, at its sole cost and expense, all licenses, permits, qualifications, insurance and approvals of whatsoever nature that is legally required of Contractor to practice its profession. Contractor shall maintain a City of Newport Beach business license during the term of this Contract. 7.6. Contractor shall not be responsible for delay, nor shall Contractor be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, acts of God, or the failure of City to furnish timely information or to approve or disapprove Contractor's Work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 8. CHANGE ORDERS 8.1 . This Contract may be amended or modified only by mutual written agreement of the parties. 8.2. The Contractor shall only commence work covered by a change order after the change order is executed and notification to proceed has been provided by the City. Climate Air Masters, Inc. Page 4 8.3. There shall be no change in the Contractors members of the project team, as listed in the approved proposal, which is a part of this contract without prior written approval by the City. 9. RESPONSIBILITY FOR DAMAGES OR INJURY 9.1. City and its elected or appointed officers, agents, officials, employees and volunteers shall not be responsible in any manner for any loss or damage to any of the materials or other things used or employed in performing the Project, or for injury to or death of any person as a result of Contractor's performance of the Work required hereunder; or for damage to property from any cause arising from the performance of the Project by Contractor, or its subcontractors, or its workers, or anyone employed by either of them. 9.2. Contractor shall be responsible for any liability imposed by law and for injuries to or death of any person or damage to property resulting from defects, obstructions or from any cause arising from Contractor's Work on the Project, or the Work of any subcontractor or supplier selected by Contractor. 9.3. To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its elected or appointed officers, agents, officials, employees and volunteers (collectively, the "Indemnified Parties"), from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Contract, any Work performed or Services provided under this Contract including, without limitation, defects in workmanship or materials or Contractor's presence or activities conducted on the Project (including the negligent, reckless, and/or willful acts, errors and/or omissions of Contractor, its principals, officers, agents, employees, vendors, suppliers, subconsultants, subcontractors, anyone employed directly or indirectly by any of them, or for whose acts they may be liable for any or all of them. 9.4. Notwithstanding the foregoing, nothing herein shall be construed to require Contractor to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorneys' fees in any action on or to enforce the terms of this Contract. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Contractor. 9.5. Contractor shall perform all Work in a manner to minimize public inconvenience and possible hazard, to restore other work areas to their original condition and former usefulness as soon as possible, and to protect public and private property. Contractor shall be liable for any private or public property damaged during the performance of the Project Work. Climate Air Masters, Inc. Page 5 9.6. To the extent authorized by law, as much of the money due Contractor under and by virtue of the Contract as shall be considered necessary by City may be retained by it until disposition has been made of such suits or claims for damages as aforesaid. 9.7. Nothing in this Section or any other portion of the Contract Documents shall be construed as authorizing any award of attorneys' fees in any action to enforce the terms of this Contract, except to the extent provided for above. 9.8. The rights and obligations set forth in this Section shall survive the termination of this Contract. 10. INDEPENDENT CONTRACTOR City has retained Contractor as an independent contractor and neither Contractor nor its employees are to be considered employees of City. The manner and means of conducting the Work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the express terms of this Contract. No civil service status or other right of employment shall accrue to Contractor or its employees. Contractor shall have the responsibility for and control over the means of performing the Work, provided that Contractor is in compliance with the terms of this Contract. Anything in this Contract that may appear to give City the right to direct Contractor as to the details of the performance or to exercise a measure of control over Contractor shall mean only that Contractor shall follow the desires of City with respect to the results of the Work. 11. COOPERATION Contractor agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the Work to be performed. City agrees to cooperate with Contractor on the Project. 12. CITY POLICY Contractor shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Contractor is responsible for keeping the Project Administrator and/or designee informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings have been scheduled or are desired. 14. INSURANCE Without limiting Contractor's indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Contract or for other periods as specified in this Contract, policies of insurance of the Climate Air Masters, Inc. Page 6 type, amounts, terms and conditions described in the Insurance Requirements attached hereto as Exhibit C and incorporated herein by reference. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Contract, the Work to be performed under this Contract shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor, or of the interest of any general partner or joint venturer or syndicate member or co-tenant if Contractor is a partnership or joint-venture or syndicate or co-tenancy, which shall result in changing the control of Contractor. Control means fifty percent (50%) or more of the voting power or twenty-five percent (25%) or more of the assets of the corporation, partnership or joint-venture. 16. SUBCONTRACTING The subcontractors authorized by City, if any, to perform the Work on this Project are identified in the Proposal attached as Exhibit B. Contractor shall be fully responsible to City for all acts and omissions of any subcontractors. Nothing in this Contract shall create any contractual relationship between City and subcontractor, nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. City is an intended beneficiary of any Work performed by the subcontractor for purposes of establishing a duty of care between the subcontractor and City. Except as specifically authorized herein, the Work to be performed under this Contract shall not be otherwise assigned, transferred, contracted or subcontracted out without the prior written approval of City. 17. OWNERSHIP OF DOCUMENTS 17.1. Each and every report, draft, map, record, plan, document and other writing produced (hereinafter "Documents'), prepared or caused to be prepared by Contractor, its officers, employees, agents and subcontractors, in the course of implementing this Contract, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Contractor or any other party. Contractor shall, at Contractors expense, provide such Documents to City upon prior written request. 17.2. Documents, including drawings and specifications, prepared by Contractor pursuant to this Contract, are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed Documents for other projects and any use of incomplete Documents without specific written authorization from Contractor will be at City's sole risk and without liability to Contractor. Further, any and all liability arising out of changes made to Contractors deliverables under this Contract by City or persons other than Contractor is waived against Contractor and City assumes full responsibility for such changes unless City has given Contractor prior notice and has received from Contractor written consent for such changes. Climate Air Masters, Inc. Page 7 18. RECORDS Contractor shall keep records and invoices in connection with the Work to be performed under this Contract. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Contract and any Services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Contract. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of City to examine, audit and make transcripts or copies of such records and invoices during regular business hours. Contractor shall allow inspection of all Work, documents, proceedings and activities related to the Contract for a period of three (3) years from the date of final payment to Contractor under this Contract. 19. WITHHOLDINGS City may withhold payment to Contractor of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Contract. Contractor shall not discontinue Work as a result of such withholding. Contractor shall have an immediate right to appeal to the City Manager or designee with respect to such disputed sums. Contractor shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 20. CONFLICTS OF INTEREST 20.1. Contractor or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act'), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the Work performed under this Contract, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 20.2. If subject to the Act, Contractor shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Contract by City. Contractor shall indemnify and hold harmless City for any and all claims for damages resulting from Contractor's violation of this Section. 21. NOTICES 21.1. All notices, demands, requests or approvals to be given under the terms of this Contract shall be given in writing, to City by Contractor and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first-class mail, addressed as hereinafter provided. Climate Air Masters, Inc. Page 8 21.2. All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Attn: Public Works Director Public Works Department City of Newport Beach 100 Civic Center Drive PO Box 1768 Newport Beach, CA 92658 21.3. All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attn: Kevin Burdette Climate Air Masters, Inc. 1139 N. Anaheim Boulevard Anaheim, CA 92801 22. NOTICE OF CLAIMS Unless a shorter time is specified elsewhere in this Contract, before making its final request for payment under the Contract Documents, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Contract. Contractor's acceptance of the final payment shall constitute a waiver of all claims for compensation under or arising out of this Contract, except those previously made in writing and identified by Contractor in writing as unsettled at the time of its final request for payment. Contractor and City expressly agree that in addition to all claims filing requirements set forth in the Contract and Contract Documents, Contractor shall be required to file any claim Contractor may have against City in strict conformance with the Government Claims Act (Govt. Code §§ 900 etseq.). 23. TERMINATION 23.1. In the event that either party fails or refuses to perform any of the provisions of this Contract at the time and in the manner required, that party shall be deemed in default in the performance of this Contract. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, the non-defaulting party may terminate the Contract forthwith by giving to the defaulting party written notice thereof. 23.2. Notwithstanding the above provisions, City shall have the right, at its sole discretion and without cause, of terminating this Contract at any time by giving seven (7) calendar days prior written notice to Contractor. In the event of termination under this Section, City shall pay Contractor for Services satisfactorily performed and costs incurred up to the effective date of termination for which Contractor has not been Climate Air Masters, Inc. Page 9 previously paid. On the effective date of termination, Contractor shall deliver to City all materials purchased in performance of this Contract. 24. EFFECT OF CONTRACTOR'S EXECUTION Execution of this Contract and all other Contract Documents by Contractor is a representation that Contractor has visited the Project Site as defined by the Contract Documents, has become familiar with the local conditions under which the Work is to be performed, and has correlated all relevant observations with the requirements of the Contract Documents. 25. STANDARD PROVISIONS 25.1. Recitals. City and Contractor acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Contract. 25.2. Compliance with all Laws. Contractor shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all Work prepared by Contractor shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 25.3. Waiver. A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 25.4. Integrated Contract. This Contract represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 25.5. Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Contract and any other attachments attached hereto, the terms of this Contract shall govern. 25.6. Interpretation. The terms of this Contract shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Contract or any other rule of construction which might otherwise apply. 25.7. Amendments. This Contract may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney. Climate Air Masters, Inc. Page 10 25.8. Severability. If any term or portion of this Contract is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Contract shall continue in full force and effect. 25.9. Controlling Law and Venue. The laws of the State of California shall govern this Contract and all matters relating to it and any action brought relating to this Contract shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 25.10. Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, sexual orientation, age or any other impermissible basis under law. 25.11. No Attorney's Fees. In the event of any dispute or legal action arising under this Contractor, the prevailing party shall not be entitled to attorneys' fees. 25.12. Counterparts. This Contract may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. [SIGNATURES ON NEXT PAGE] Climate Air Masters, Inc. Page 11 IN WITNESS WHEREOF, the parties have caused this Contract to be executed on the dates written below. APPROVED AS TO FORM: CITY OF NEWPORT BEACH, CITY ATTRN Y'S OFFICE a California municipal corporation Date: Date: C _ 174 5 By. By: _-J2q. &X Aaron C. Harp pNr.� David A. Webb City Attorney �� Public Works Director ATTEST: n Date: By: V*i j Leilani I. Brown City Clerk CONTRACTOR: Climate Air Masters, Inc. a California corporation Date: By:� Kevin Burdette Owner/President Date: By: Darlene Castaneda Treasurer/Secretary [END OF SIGNATURES] Attachments: Exhibit A — Request for Proposals/Bids Exhibit B — Proposal Exhibit C — Insurance Requirements Climate Air Masters, Inc. Page 12 EXHIBIT A REQUEST FOR PROPOSALS/BIDS Climate Air Masters, Inc. Page A-1 Date: June 10, 2015 EWPo' To: Interested Contractors �� From: Iris Lee, Senior Civil Engineer s.__ .. Subject: Request For Proposals to Replace HVAC Unit(s) City Public Works Owned Residential Dwelling Units Department The City owns two (2) residential dwelling units at the Balboa Yacht Basin next to the City's Harbor Resources Office at 829 Harbor Island Drive (see attached map). City records suggest these units were constructed in the 1950s. They are not equipped with an air conditioning system, and their heating units are no longer performing at its optimal state. The City, now, desires to obtain pricing to complete the following work: 1. Assess the existing mechanical piping and duct systems for re-use suitability. 2. Assess the condition and capacity of the existing electrical circuitries and panels for new HVAC loading compatibility. 3. Obtain no-fee building permit(s), as necessary. 4. Remove and dispose of the existing heating units. 5. Remove and dispose of piping and ducts that cannot be reused, including all work and costs for asbestos removal (if any). 6. Install new electrical conduits, wires, circuitry, breakers, panels, ground rods, and other components as needed for a functional system. 7. Make all necessary cutting, patching, refinishing, painting, and all necessary installation, construction, and repair work. 8. Construct equipment pads, as needed. 9. Furnish and install needed new ducting and best-suited HVAC equipment including new thermostats and JA 10.Test and complete air balance. 11.Provide E) year 100% parts and labor extended warranty on HVAC equipment. �yeq�s The Proposal shall include a detailed narrative of the scope of work and the equipment make and model proposed at each of the dwelling units. The cost, at a minimum, shall be broken down to include the following: Contract work: 1. Heating upgrade for Units #5 and #6; Additive contract work: 1. Air Conditioning upgrade for Unit#5; and 2. Air Conditioning upgrade for Unit#6. Arrangements for a job walk to take inventory of the site conditions may be made with Mr. Chris Miller, Harbor Resources Manager, at (949) 644-3043. All site visits must be completed by June 18, 2015. One (1) hard copy and one (1) electronic copy of the Proposal shall be delivered no later than 5:OOp.m. on June 23, 2015. Postmarks will note be accepted. Please mail or hand-deliver Proposals to: Iris Lee City of Newport Beach - Public Works Department 100 Civic Center Drive Newport Beach, CA 92660 Aside from job walk appointments, all questions related to this Proposal should be directed to Iris Lee at (949) 644-3323. EXHIBIT B PROPOSAL Climate Air Masters, Inc. Page B-1 lit iimATE 0 MASTSRS �r-DITIONING & HEATING. INC. 1 "Changing Indoor Climate One Job At A Time." June 16, 2015 City of Newport Beach-Public Works Department Attn: Iris Lee 100 Civic Center Dr. Newport Beach, CA 92660 Re: 829 Harbor Isla Dr. Apts. 5 & 6 Newport Beach, CA 92660 Proposal - Apt. #6 Have asbestos ductwork abated by Enkay Engineering. Re-duct attic with R-6 rated silver flex duct. Connect to all supply cans. Tape and zip tie connections. Remove existing upflow furnace. Build platform. Install a new York(3 ton) 60,000 BTU upflow furnace (model #TGLS060Al2MP 11). Set furnace on filter base. Connect supply plenum and seal. Connect flue vent and gas line. Cut in collar onto platform. Install 12" wrapped alumaflex. Run alumaflex into attic. In attic, run R-6 rated silver flex duct to new 24x14 return air grille. Cut grille into hallway ceiling. Tape and zip tie connections. Start and test system operations. Includes City Permit& HERS Rater. WARRANTY: (2) years labor, (10) years parts, (20) years heat exchanger Total Amount: S 5,100.00 If you have any questions, please feel free to call. Sincerely, By signing this proposal will become a contract. Kevin Burdette Accepted by: Dated: Sales 1139 N.Anaheim Blvd.,Anaheim, CA 92801—PHONE: 714-533-0402—FAX: 714-533-1373—LICENSE#695854 lit CLIMATE , MASTERS t AIR CONDITIONING & HEATING, INC. "Changing Indoor Climate One Job At A Time." July 2, 2015 City of Newport Beach-Public Works Department Attn: Iris Lee 100 Civic Center Dr. Newport Beach, CA 92660 Re: 829 Harbor Isla Dr. Apts. 5 & 6 Newport Beach, CA 92660 Dear Ms. Lee Thank you for giving us the opportunity to give you a proposal on your heating and air conditioning system. INCLUSIONS: Proposal - Apt. #5 Have asbestos ductwork abated by Enkay Engineering. Re-duct attic with R-6 rated silver flex duct. Connect to all supply cans. Tape and zip fie connections. Remove furnace. Install platform. Install a new York(3 ton) 60,000 BTU upflow furnace (model #TGLS060Al2MP11) with a new evaporative coil (model #CV360A6). Set furnace on filter base. Connect to supply plenum and seal connections. Connect flue vent and gas line. Cut in collar onto platform. Install 12" wrapped alumaflex. Run alumaflex into attic. In attic, run R-6 rated silver flex duct to new 24x14 return air grille. Cut grille into hallway ceiling. Tape and zip tie connections. From electrical panel, run 220V circuit down thru garage out back wall. On back wall of garage, install fused disconnect. From evaporative coil, run new copper refrigerant lines down thrix garage thru back wall to new York (2 ton) 13.0 SEER Slimline air conditioner (model#TCHD24S41S3). Set unit on PVC pad and secure. Weld in copper refrigerant lines. Pressure test system. Wire in 220V power. Run condensate from coil to washer drain. Install new Honeywell digital thermostat (programmable). Start and test system operation. Includes City Permit & HERS Rater. WARRANTY: (2) years labor, (10) years parts & compressor, (20) years heat exchanger Total Amount: $ 9,050-00 139 N. Anaheim Blvd.,Anaheim, CA 92801—PHONE: 714-533-0402—FAX: 714-533-1373—LICENSE#695854 EXHIBIT C INSURANCE REQUIREMENTS — PUBLIC WORKS AND CONSTRUCTION 1. Provision of Insurance. Without limiting Contractor's indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Contract, policies of insurance of the type and amounts described below and in a form satisfactory to City. Contractor agrees to provide insurance in accordance with requirements set forth here. If Contractor uses existing coverage to comply and that coverage does not meet these requirements, Contractor agrees to amend, supplement or endorse the existing coverage. 2. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by City's Risk Manager. 3. Coverage Requirements. A. Workers' Compensation Insurance. Contractor shall maintain Workers' Compensation Insurance providing statutory benefits and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000) each employee for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with California law for all of the subcontractor's employees. The insurer issuing the Workers' Compensation insurance shall amend its policy by endorsement to waive all rights of subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its elected or appointed officers, agents, officials, employees and volunteers. B. General Liability Insurance. Contractor shall maintain commercial general liability insurance and, if necessary, umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate and two million dollars ($2,000,000) completed operations aggregate. The policy shall cover liability arising from premises, operations, products-completed operations, personal and advertising injury, and liability assumed under an Climate Air Masters, Inc. Page C-1 insured contract (including the tort liability of another assumed in a business contract). C. Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of Contractor arising out of or in connection with Work to be performed under this Contract, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each accident. D. Builder's Risk Insurance. For Contracts with property exposures during construction, Contractor shall maintain Builders Risk insurance or an installation floater as directed by City, covering damages to the Work for "all risk" or special causes of loss form with limits equal to 100% of the completed value of Contract, with coverage to continue until final acceptance of the Work by City. At the discretion of City, the requirement for such coverage may include additional protection for Earthquake and/or Flood. City shall be included as an insured on such policy, and Contractor shall provide City with a copy of the policy. E. RESERVED. F. RESERVED. 4. Other Insurance Requirements. The policies are to contain, or be endorsed to contain, the following provisions: A. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Contract shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. B. Additional Insured Status. All liability policies including general liability, products and completed operations, excess liability, pollution liability, and automobile liability, if required, shall provide or be endorsed to provide that City, its elected or appointed officers, agents, officials employees and volunteers shall be included as additional insureds under such policies. C. Primary and Non Contributory. Contractor's insurance coverage shall be primary insurance and/or the primary source of recovery with respect to City, its elected or appointed officers, agents, officials, employees and volunteers. Climate Air Masters, Inc. Page C-2 Any insurance or self-insurance maintained by City shall be excess of Contractor's insurance and shall not contribute with it. D. Notice of Cancellation. All policies shall provide City with thirty (30) calendar days notice of cancellation or nonrenewal of coverage (except for nonpayment for which ten (10) calendar days notice is required) for each required coverage except Builders Risk Insurance, which shall contain an endorsement with said required notices. 5. Additional Agreements Between the Parties. The parties hereby agree to the following: A. Evidence of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. All of the executed documents referenced in this Contract must be returned to City within ten (10) regular City business days after the date on the "Notification of Award". Insurance certificates and endorsements must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Contract. City reserves the right to require complete, certified copies of all required insurance policies, at anytime. B. City's Right to Revise Requirements. City reserves the right at any time during the term of the Contract to change the amounts and types of insurance required by giving Contractor ninety (90) calendar days advance written notice of such change. If such change results in substantial additional cost to Contractor, City and Contractor may renegotiate Contractor's compensation. C. Right to Review Subcontracts. Contractor agrees that upon request, all agreements with subcontractors or others with whom Contractor enters into contracts with on behalf of City will be submitted to City for review. Failure of City to request copies of such agreements will not impose any liability on City, or its employees. Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on all insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a format at least as broad as CG 20 38 04 13. D. Enforcement of Contract Provisions. Contractor acknowledges and agrees that any actual or alleged failure on the part of City to inform Contractor of non-compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder. Climate Air Masters, Inc. Page C-3 E. Requirements not Limiting. Requirements of specific coverage features or limits contained in this Exhibit C are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for higher limits maintained by the Contractor. Any available proceeds in excess of specified minimum limits of insurance and coverage shall be available to the City. F. Self-Insured Retentions. Contractor agrees not to self-insure or to use any self-insured retentions on any portion of the insurance required herein and further agrees that it will not allow any indemnifying party to self-insure its obligations to City. If Contractor's existing coverage includes a self-insured retention, the self-insured retention must be declared to City. City may review options with Contractor, which may include reduction or elimination of the self-insured retention, substitution of other coverage, or other solutions. Contractor agrees to be responsible for payment of any deductibles on their policies. G. City Remedies for Non Compliance. If Contractor or any subcontractor fails to provide and maintain insurance as required herein, then City shall have the right but not the obligation, to purchase such insurance, to terminate this Contract, or to suspend Contractor's right to proceed until proper evidence of insurance is provided. Any amounts paid by City shall, at City's sole option, be deducted from amounts payable to Contractor or reimbursed by Contractor upon demand. H. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor's performance under this Contract, and that involve or may involve coverage under any of the required liability policies. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. I. Coverage not Limited. All insurance coverage and limits provided by Contractor and available or applicable to this Contract are intended to apply to the full extent of the policies. Nothing contained in this Contract or any other agreement relating to City or its operations limits the application of such insurance coverage. J. Coverage Renewal. Contractor will renew the coverage required here annually as long as Contractor continues to provide any Work under this or any other Contract or agreement with City. Contractor shall provide proof Climate Air Masters, Inc. Page C-4 that policies of insurance required herein expiring during the term of this Contract have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contractor's insur4ance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City with five (5) calendar days of the expiration of the coverages. Climate Air Masters, Inc. Page C-5 CERTIFICATE OF INSURANCE CHECKLIST City of Newport Beach This checklist is comprised of requirements as outlined by the City of Newport Beach. Date Received: 8/6/15 Dept./Contact Received From: Raymund Date Completed: 9/8/15 Sent to: Raymund By: Chris Company/Person required to have certificate: Climate Air Masters Type of contract: All Others I. GENERAL LIABILITY EFFECTIVE/EXPIRATION DATE: 9/18/14-9118/15 A. INSURANCE COMPANY: Developers Surety&Indemnity Company B. AM BEST RATING(A-: VII or greater): A:XII C. ADMITTED Company(Must be California Admitted): Is Company admitted in California? E Yes ❑ No D. LIMITS (Must be$1M or greater): What is limit provided? 1,000,000/2,000,000 E. ADDITIONAL INSURED ENDORSEMENT—please attach ® Yes ❑ No F. PRODUCTS AND COMPLETED OPERATIONS(Must include): Is it included? (completed Operations status does not apply to Waste Haulers or Recreation) ® Yes ❑ No G. ADDITIONAL INSURED FOR PRODUCTS AND COMPLETED OPERATIONS ENDORSEMENT(completed Operations status does not apply to Waste Haulers) N Yes ❑ No H. ADDITIONAL INSURED WORDING TO INCLUDE(The City its officers, officials, employees and volunteers): Is it included? E Yes ❑ No I. PRIMARY&NON-CONTRIBUTORY WORDING (Must be included): Is it included? N Yes ❑ No J. CAUTION! (Confirm that loss or liability of the named insured is not limited solely by their negligence) Does endorsement include"solely by negligence"wording? ❑ Yes N No K. ELECTED SCMAF COVERAGE(RECREATION ONLY): E NIA ❑Yes ❑ No L. NOTICE OF CANCELLATION: ❑ N/A N Yes ❑ No H. AUTOMOBILE LIABILITY EFFECTIVE/EXPIRATION DATE: 6/28/15-6/28/16 A. INSURANCE COMPANY: Integon National Insurance Company B. AM BEST RATING(A-: VII or greater) A-:X C. ADMITTED COMPANY(Must be California Admitted): Is Company admitted in California? N Yes ❑ No D. LIMITS - If Employees(Must be $1M min. BI &PD and $500,000 UM, $2M min for Waste Haulers): What is limits provided? 1,000,000 E. LIMITS Waiver of Auto Insurance/Proof of coverage(if individual) (What is limits provided?) N/A F. PRIMARY& NON-CONTRIBUTORY WORDING (For Waste Haulers only): E N/A ❑ Yes ❑ No G. HIRED AND NON-OWNED AUTO ONLY: ❑ N/A ❑ Yes E No H. NOTICE OF CANCELLATION: ❑ N/A E Yes 0 No III. WORKERS'COMPENSATION EFFECTIVE/EXPIRATION DATE: 6/25/15-6/25/16 A. INSURANCE COMPANY: Security National Insurance Company B. AM BEST RATING(A-: VII or greater): A:XIH C. ADMITTED Company(Must be California Admitted): ®Yes ❑ No D. WORKERS' COMPENSATION LIMIT: Statutory ®Yes ❑ No E. EMPLOYERS' LIABILITY LIMIT(Must be$1M or greater) 1,000,000 F. WAIVER OF SUBROGATION (To include): Is it included? ®Yes ❑ No G. SIGNED WORKERS' COMPENSATION EXEMPTION FORM: ® N/A ❑Yes ❑ No H. NOTICE OF CANCELLATION: ❑ N/A ® Yes ❑ No ADDITIONAL COVERAGE'S THAT MAYBE REQUIRED IV. PROFESSIONAL LIABILITY ® N/A ❑Yes ❑ No V POLLUTION LIABILITY ® N/A ❑ Yes ❑ No V BUILDERS RISK ® N/A ❑Yes ❑ No HAVE ALL ABOVE REQUIREMENTS BEEN MET? ® Yes ❑ No IF NO,WHICH ITEMS NEED TO BE COMPLETED? Approved: 9/8/15 Agent of Alliant Insurance Services Date Broker of record for the City of Newport Beach RISK MANAGEMENT APPROVAL REQUIRED (Non-admitted carrier rated less than Self Insured Retention or Deductible greater than $ ) ❑ N/A ❑Yes ❑ No Reason for Risk Management approval/exception/waiver: Approved: Risk Management Date * Subject to the terms of the contract.