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HomeMy WebLinkAboutC-10006-1 - M/RSA for Refurbishment of Lifeguard Rescue Vessel and Purchase and Installation of New PowertrainsY CITAgaM Z4a d a � d'r�.a,SS MAINTENANCE/REPAIR SERVICES AGREEMENT WITH SOUTH COAST SHIPYARD, INC. FOR REFURBISHMENT OF LIFEGUARD RESCUE VESSEL AND PURCHASE AND INSTALLATION OF NEW POWERTRAINS THIS MAINTENANCE/REPAIR SERVICES AGREEMENT ("Agreement") is made and entered into as of this 30th day of September, 2025 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and SOUTH COAST SHIPYARD, INC., a California corporation ("Contractor"), whose address is 223 21 st Street, Newport Beach, CA 92663, 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 desires to engage Contractor to perform maintenance and/or repair services for City ("Project"). C. Contractor possesses the skill, experience, ability, background, certification and knowledge to provide the maintenance and/or repair services described in this Agreement. D. Contractor has examined the location of all proposed work, carefully reviewed and evaluated the specifications set forth by City for the Project, is familiar with all conditions relevant to the performance of services, and has committed to perform all work required for the compensation specified in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Agreement shall commence on the Effective Date, and shall terminate on December 31, 2026, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED 2.1 Contractor shall diligently perform all the services described in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference ("Services" or "Work"). As a material inducement to City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and Contractor is experienced in performing the Work contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow community professional standards with the ordinary degree of skill and care that would be used by other reasonably competent practitioners of the same discipline under similar circumstances, in performing the Work required hereunder, and that all materials will be of good quality. 2.2 Contractor shall perform all Work required to be performed, and shall provide and furnish all the labor, materials, necessary tools, expendable equipment and all utility and transportation services necessary for the Project. 3. TIME OF PERFORMANCE 3.1 Time is of the essence in the performance of Services under this Agreement and Contractor shall perform the Services in accordance with the schedule included in Exhibit A. In the absence of a specific schedule, the Services shall be performed to completion in a diligent and timely manner. The failure by Contractor to strictly adhere to the schedule set forth in Exhibit A, if any, or perform the Services in a diligent and timely manner may result in termination of this Agreement by City. 3.2 Notwithstanding the foregoing, Contractor shall not be responsible for delays due to causes beyond Contractor's reasonable control. However, in the case of any such delay in the Services to be provided for the Project, each party hereby agrees to provide notice within two (2) calendar days of the occurrence causing the delay to the other party so that all delays can be addressed. 3.3 Contractor shall submit all requests for extensions of time for performance in writing to the Project Administrator as defined herein, not later than two (2) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Contractor's control. 3.4 For all time periods not specifically set forth herein, Contractor shall respond in the most expedient and appropriate manner under the circumstances, by fax, hand - delivery or mail. 4. COMPENSATION TO CONTRACTOR 4.1 City shall pay Contractor for the Services on a time and expense not -to - exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise provided herein, no rate changes shall be made during the term of this Agreement without the prior written approval of City. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Six Hundred Ninety Two Thousand Six Hundred Twenty Dollars and 00/100 ($692,620.00), without prior written amendment to the Agreement. 4.2 The total sum shall be comprised of the base bid amount of Four Hundred Sixty Six Thousand Twenty Dollars and 00/100 ($466,020.00) ("Base Bid"), two optional items totaling Ninety Thousand Dollars and 00/100 ($90,000) each, and a contingency amount of Forty Six Thousand Six Hundred Dollars and 00/100 ($46,600.00). 4.3 Contractor shall submit monthly invoices to City describing the Work performed the preceding month. Contractor's bills shall include the name and/or classification of employee who performed the Work, a brief description of the Services performed and/or the specific task in the Scope of Services to which it relates, the date South Coast Shipyard, Inc. Page 2 the Services were performed, the number of hours spent on all Work billed on an hourly basis, and a description of any reimbursable expenditures. City shall pay Contractor no later than thirty (30) calendar days after approval of the monthly invoice by City staff. 4.4 City shall reimburse Contractor only for those costs or expenses specifically identified in Exhibit B to this Agreement, or specifically approved in writing in advance by City. 4.5 Contractor shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any Work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Compensation for any authorized Extra Work shall be paid in accordance with Exhibit B. 5. PROJECT MANAGER 5.1 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 Agreement term. Contractor has designated John Lauritzen to be its Project Manager. Contractor shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. 5.2 Contractor, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of Services upon written request of City. Contractor warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. 6. ADMINISTRATION This Agreement will be administered by the Fire Department. City's Assistant Chief, Lifeguard Operations or designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES To assist Contractor in the execution of its responsibilities under this Agreement, City agrees to provide access to and upon request of Contractor, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Contractor's Work schedule. 8. TYPE AND INSTALLATION OF MATERIALS/STANDARD OF CARE 8.1 Contractor shall use only the standard materials described in Exhibit A in performing Services under this Agreement. Any deviation from the materials South Coast Shipyard, Inc. Page 3 described in Exhibit A shall not be installed or utilized unless approved in advance and in writing by the Project Administrator. 8.2 All of the Services 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 Agreement, and that it will perform all Services in a manner commensurate with community professional standards and with the ordinary degree of skill and care that would be used by other reasonably competent practitioners of the same discipline under similar circumstances. All Services shall be performed by qualified and experienced personnel who are not employed by City. By delivery of completed Work, Contractor certifies that the Work conforms to the requirements of this Agreement, all applicable federal, state and local laws and legally recognized professional standards. 8.3 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 Agreement. 8.4 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. 9. RESPONSIBILITY FOR DAMAGES OR INJURY 9.1 City and all officers, employees and representatives thereof 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 Services 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 City Council, boards and commissions, officers, agents, volunteers, and employees (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 Agreement, any Work performed or Services provided under this Agreement including, without limitation, South Coast Shipyard, Inc. Page 4 defects in workmanship or materials or Contractor's presence or activities conducted on the Project (including the negligent and/or willful acts, errors and/or omissions of Contractor, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or 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 Agreement. 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 Work by Contractor or its agents. 9.6 To the extent authorized by law, as much of the money due Contractor under and by virtue of the Agreement 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 The rights and obligations set forth in this Section shall survive the termination of this Agreement. 10. INDEPENDENT CONTRACTOR It is understood that City retains Contractor on an independent contractor basis and Contractor is not an agent or employee 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 expressed terms of this Agreement. No civil service status or other right of employment shall accrue to Contractor or its employees. Nothing in this Agreement shall be deemed to constitute approval for Contractor or any of Contractor's employees or agents, to be the agents or employees of City. 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 Agreement. Anything in this Agreement that may appear to give City the right to direct Contractor as to the details of the performance of the Work 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 Services. 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. South Coast Shipyard, Inc. Page 5 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 informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings that 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 Agreement or for other periods as specified in this Agreement, policies of insurance of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as Exhibit C, and incorporated herein by reference. 15. BONDING 15.1 Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement a Faithful Performance Bond in the amount of one hundred percent (100%) of the Base Bid amount to be paid Contractor as set forth in this Agreement in the form attached hereto as Exhibit D which is incorporated herein by this reference. 15.2 The Faithful Performance Bond shall be issued by an insurance organization or surety (1) currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, (2) listed as an acceptable surety in the latest revision of the Federal Register Circular 570, and (3) assigned a Policyholders' Rating A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide: Property -Casualty. 15.3 Contractor shall deliver, concurrently with execution of this Agreement, the Faithful Performance Bond, a certified copy of the "Certificate of Authority" of the Insurer or Surety issued by the Insurance Commissioner, which authorizes the Insurer or Surety to transact surety insurance in the State of California. 16. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the Services to be provided under this Agreement 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 cotenant if Contractor is a partnership or joint -venture or syndicate or cotenancy, which shall result in changing the control of South Coast Shipyard, Inc. Page 6 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. 17. SUBCONTRACTING The subcontractors authorized by City, if any, to perform Work on this Project are identified in Exhibit A. Contractor shall be fully responsible to City for all acts and omissions of any subcontractor. Nothing in this Agreement shall create any contractual relationship between City and any 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 Services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the prior written approval of City. 18. OWNERSHIP OF DOCUMENTS 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 Agreement, 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 Contractor's expense, provide such Documents to City upon prior written request. 19. CHANGE ORDERS 19.1 This Contract may be amended or modified only by mutual written agreement of the parties. 19.2 Any deviation from the materials as provided in Section 8 above shall be subject to a change order as prescribed in this Section. 19.3 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. 19.4 There shall be no change in the Contractor's 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. 20. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the Services in this Agreement, shall be kept confidential unless City expressly authorizes in writing the release of information. South Coast Shipyard, Inc. Page 7 21. RECORDS Contractor shall keep records and invoices in connection with the Services to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement 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 Agreement. 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, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. 22. 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 Agreement. Contractor shall not discontinue Work as a result of such withholding. Contractor shall have an immediate right to appeal to the City Manager or his/her 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. 23. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS City reserves the right to employ other contractors in connection with the Project. 24. CONFLICTS OF INTEREST 24.1 Contractor or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act") and/or Government Code §§ 1090 et seq., which (1) require such persons to disclose any financial interest that may foreseeably be materially affected by the Work performed under this Agreement, and (2) prohibit such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 24.2 If subject to the Act and/or Government Code §§ 1090 et seq., Contractor shall conform to all requirements therein. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Contractor shall indemnify and hold harmless City for any and all claims for damages resulting from Contractor's violation of this Section. 25. NOTICES 25.1 All notices, demands, requests or approvals, including any change in mailing address, to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third South Coast Shipyard, Inc. Page 8 business day after the deposit thereof in the United States mail, postage prepaid, first- class mail, addressed as hereinafter provided. 25.2 All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Attn: Fire Administrative Manager Fire Department City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 25.3 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attn: John Lauritzen, Vice President South Coast Shipyard, Inc. 223 21 st Street Newport Beach, CA 92663 26. CLAIMS Unless a shorter time is specified elsewhere in this Agreement, before making its final request for payment under this Agreement, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Agreement. Contractor's acceptance of the final payment shall constitute a waiver of all claims for compensation under or arising out of this Agreement 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 any claims filing requirements set forth in the Agreement, Contractor shall be required to file any claim Contractor may have against City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 27. TERMINATION 27.1 In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. 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, and thereafter diligently take steps to cure the default, the non -defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 27.2 Notwithstanding the above provisions, City shall have the right, at its sole and absolute discretion and without cause, of terminating this Agreement at any time by giving no less than 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 South Coast Shipyard, Inc. Page 9 Contractor has not been previously paid. On the effective date of termination, Contractor shall deliver to City all reports, Documents and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 28. LABOR 28.1 Contractor shall conform with all applicable provisions of state and federal law including, but not limited to, applicable provisions of the federal Fair Labor Standards Act ("FLSA") (29 USCA § 201, et seq.). 28.2 Whenever Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of this Agreement, Contractor shall immediately give written notice to City, and provide all relevant information. 28.3 Contractor represents that all persons working under this Agreement are verified to be U.S. citizens or persons legally authorized to work in the United States. 28.4 To the fullest extent permitted by law, Contractor shall indemnify, defend, and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees from loss or damage, including but not limited to attorneys' fees, and other costs of defense by reason of actual or alleged violations of any applicable federal, state and local labor laws or law, rules, and/or regulations. This obligation shall survive the expiration and/or termination of the Agreement. 29. INSPECTION City reserves and shall at any and all reasonable times, upon twenty-four (24) hours' notice to Contractor, have the right to enter the property located at 223 21 st Street, Newport Beach, CA 92663 ("Premises") to inspect same, to determine whether Contractor is complying with this Agreement, and fulfilling its obligations to City hereunder. Contractor waives any claim for damages for injury, inconvenience, or interference, or any loss of occupancy or quiet enjoyment, caused by such entry, except to the extent caused by the sole negligence, recklessness or willful misconduct of City or any person or entity entering upon the Premises under City's direction or control. 30. STANDARD PROVISIONS 30.1 Recitals. City and Contractor acknowledge that the above Recitals are true and correct and are hereby incorporated by reference. 30.2 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. 30.3 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 South Coast Shipyard, Inc. Page 10 of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 30.4 Integrated Contract. This Agreement 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. 30.5 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 30.6 Interpretation. The terms of this Agreement 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 Agreement or any other rule of construction which might otherwise apply. 30.7 Amendments. This Agreement 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. 30.8 Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 30.9 Controlling Law and Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 30.10 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. 30.11 No Attorneys' Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. 30.12 Counterparts. This Agreement 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 (1) and the same instrument. [SIGNATURES ON NEXT PAGE] South Coast Shipyard, Inc. Page 11 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 1115o 6 CITY OF NEWPORT BEACH, a California mur}icipal corporation Date: to/2->/ -zo � By: By: A on C. Harp b tih G ac . Leung City Attorney a °�� anager ATTEST: Date: By: Lena Shumway City Clerk Attachments: Exhibit A Exhibit B Exhibit C Exhibit D CONTRACTOR: South Coast Shipyard, Inc., a California corporation Date: By: Signed in Counterpart Peter Stewart Chief Executive Officer, President Date: Signed in Counterpart By: Michelle Stewart Secretary [END OF SIGNATURES] Scope of Services Schedule of Billing Rates Insurance Requirements Faithful Performance Bond South Coast Shipyard, Inc. Page 12 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: .I f S By: -� A on C. Harp Ci y Attorney AF ATTEST: Date: Molly Perry Interim City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Grace K. Leung City Manager CONTRACTOR: South Coast Shipyard, Inc., a California corporation Date: Bv: Peter Stewart Chief Executive Officer, President Date: / 0 1 D � 1a� 4 aGt P,e� seem" [END OF SIGNATURES] Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates Exhibit C — Insurance Requirements Exhibit D — Faithful Performance Bond South Coast Shipyard, Inc. Page 12 EXHIBIT A SCOPE OF SERVICES South Coast Shipyard, Inc. Page A-1 EXHIBITA SCOPE OF SERVICES NOTE: IT SHALL BE ASSUMED THAT THE GRADE OF ALL MATERIALS TO BE PROVIDED SHOULD BE MILITARY/MARINE GRADE WHERE APPLICABLE. SPECIFICATIONS ONE (1) COMPLETE REFURBISHMENT OF EXISTING 1985 NOREK T58 (CRYSTALINER) 29.5' FIBERGLASS RESCUE VESSEL, ALSO KNOWN AS (AKA) SEA WATCH III SECTION 1 1. Hardware 1.1 Replace All Through Hulls And Bonding System 1.2 All Hardware To Be 316 Grade Stainless Steel 1.3 Replace Bimini And S/S Piping 1.3.1 Navy Blue Sunbrella Canvas 1.3.2 Stainless Steel Structure. Weld To Current Radar Arch 1.4 Arch Refit With Proper Lighting And Update Antenna Equipment 1.4.1 2 Led Deck Lights 1.4.2 2 Led Side Lights And Welded Brackets 1.4.3 4 New Antenna (Shakespeare Models Required By Each Device) 1.4.4 Whelen LED Blue Strobe 1.5 New Cushions V Berth And Two Crew Seats And Upholstery 1.5.1 Sunbrella Grey And New Foam V Berth Cushions (2) 1.6 Ring Buoy Racks 1.6.1 S/S West Marine Clips 1.7 Rub Rail 1.7.1 Black Uv Resistant And S/S 1.8 Removable seating -chairs -replace with similar style to SW1&2 1.8.1 Operator and deckhand, stainless steel frame and fiberglass base and back with new sunbrella grey cushions. (Ref. to other NBFD vessels) 1.9 Fresh water plastic tanks 1.9.1 Fresh water pump w/ %" hoses 1.9.2 water heater included in the system 1.10 Anchor fittings and cleats 1.10.1 Stainless Steel 1.11 Sea Strainers 1.11.1 X2 Racor 1.12 Replace all fuel hoses, water and stainless steel hose clamps 1.12.1 USCG approved per engine and equipment specifications 1.13 Batteries x4 1.13.1 Optima Yellow Top (Group 31) 1.14 Magnetic Compass -Ritchie 1.14.1 6" with LED 1.15 Replace all Decals 1.15.1 LIFEGUARD, RESCUE, SEAWATCH III, CF, NBFD (Color: Navy) SECTION 2 2. Mechanical 2.1 Engine Driven Pump with stainless steel mounting bracket 2.1.1 Y-Valve Selector, Bilge And Inlet Attachment 2.2 Replace Rudders And Prop Shaft Seals And Associated Parts 2.2.1 Bronze Or Comparable To Current Material (after scan/inspection of existing) 2.3 Rudder Posts And Shaftways 2.3.1 Rebuild Structure/Glass And Secure With Stainless 2.4 Replace Fuel Tank 2.4.1 Aluminum, High -Quality, 120 Gallon (matched like for like capacity) 2.4.1.1 Fuel Gauge 2.4.1.2 Sending Unit 2.5 Steering System 2.5.1 Wheel — 20" spoked or approved equal 2.5.2 Hydraulic Hoses, Seastar Pump And Ramps 2.6 Replace Exhaust System (beyond manifolds or not otherwise included with engine package) 2.6.1 USCG Approved 4" or factory recommendation 2.6.2 2 new baffles 2.6.3 Elbows and Y's 2.7 Fuel/Water Separators 2.7.1 Brand: Sierra, with shut off valves, bronze 2.8 Fire Boy Fire System 2.8.1 Dual Tank System with Pull Switch and Indicator Light 2.9 NEW ENGINES (2) 2.9.1 ILMOR 6.2L GDI (430 HP) GOV. INBOARD ENGINE PACKAGE OR CITY APPROVED EQUAL) x 2 — which should consist of. 2.9.1.1 Fresh water closed cooling - mechanical throttle and shift provision - zf-68a transmission, 1.5:1 ratio - california 5-star emissions compliant -factory warranty - shipping skid Notes: Ilmor custom government engine package includes: - closed cooled exhaust manifolds. -crank mounted mk ii stainless steel raw water pump w/easy Remove impeller - easy access service points - 4" exhaust outlets - top mount rear engine marine grade starter for east access - self -recirculating on engine fuel pump module for long Service life - mechanical throttle adapter and harness - j1939 instrumentation data and engine harness - twin engine sync. Harness -170a high output marine grade alternator - super ultra low emissions (which meets EPA/CARE regulations) 2.10 New Gauges (if not included with engine package) 2.10.1 Velatron marine.VMH 70 marine display 2.11 Morse Twin Controls 2.11.1 Cables and Connectors/Adapters 2.12 Marine digital media receiver with AM/FM radio and Bluetooth 2.13 VHF Radio — ICOM IC-M510 SECTION 3 3 Electrical 3.1 Rewire the entire vessel —AC and DC Systems: Must use Marine Grade Copper Tinned Wire. Additionally, use heat shrink/soldered connections, 16ga min, all new. 3.1.1 Circuit Breakers, Breaker Panel 3.1.1.1 Blue Seas Panel 3.1.1.2 Battery Voltmeter 3.1.2 Move Electronics into the companionway to accommodate new storage areas 3.2 Replace all Switches, Exterior Switch Panel 3.2.1 Blue Sea, Rocker Switches with Fuses 3.3 Shore Power inlet 3.4 2 Waterproof 12v DC Receptacles (USB A&C 4.0) 3.5 Inverter/Battery Charger, 3000 watt 3.6 Outlet —110v 3.7 New Simrad — GPS, Depth, Radar 3.7.1 Dual Screen Option 3.8 Bonding wiring/DC Current Protection 3.8.1 8 Gauge with zinc plates 3.8.1.1 Shaft, engine and rudder groundings 3.9 Ignition Systems — switch to new with engines 3.10 Bilge Pumps, Float switches x3 3.10.1 Rule 1500s Integrated 3.11 1 Anchor Light, 2 Nav Lights — mounted to Arch - LED 3.12 Replace Deck Lights and Underwater Lights — LED SECTION 4 4. Construction 4.1 Construct New Fiberglass Structure at Helm, Center Companionway, and Port Side Cabinet Fabrication 4.1.1 Add Companionway Steps 4.1.2 Hatch to Ingress/Egress 4.2 Replace Underwater Swim Step/Platform 4.3 Rebuild the Middle 3 Deck Hatches to Current Newer Specifications 4.4 Air Vents, Port and Starboard, Below Combing, Replace/Rebuild Boxes 4.5 Move the Samson Post/Tow Bit Forward 4.6 Re -glass and Refurbish Rear Decks 4.6.1 Raise to Allow modern Rudder Posts, Tie Bars, Bearings, if Needed 4.6.2 New Wood/Fiberglass and Steel Structure to Accommodate 4.6.3 Build 3 New Hatches, Side Storage Areas, Two on Each Side 4.7 V Berth 4.7.1 Remove Cabinets and Reconfigure New; Set Up Vertical Space Port Side and Starboard 4.7.1.1 Hanging Locker 4.7.1.2 Three or Four Shelving Systems for Safety Equipment 4.8 Replace New Foredeck Hatch 4.8.1 Glass and Privacy Window 4.9 Paint (City to provide applicable Awlgrip paint codes prior to work) 4.9.1 Repaint V Berth Interior— Blue 4.9.2 Repaint all Non -Skid Surfaces — Grey 4.9.3 Cockpit Interior and Helm — Blue 4.9.4 Repaint the Entire Hull of Boat and Combing 4.9.4.1 "Fighting Lady Yellow" 4.10 Bottom/Under Vessel 4.10.1 Strip Bottom Paint 4.10.2 Prime 4.10.3 Repaint Red BONDS, REGISTRATION & DELIVERY Contractor shall complete all DMV registration and title documents as required by the State of California Department of Motor Vehicles (CA DMV) . CF Number shall be registered to the following address: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 *Please note that the registration address is different from the delivery address* ********************** City of Newport Beach - Equipment Maintenance Division Public Works Department 592 Superior Ave, Building D Newport Beach, CA 92663 PICKUP AND DELIVERY TO AND FROM 1901 Bayside Drive (where LG vessels are normally stationed) PERFORMANCE BOND Performance Bond for 100% of the awarded amount WARRANTY & MANUALS Contractor shall: (1)Provide 1 year warranty for fabrication/work; (2) 36-month/1000hr Manufacturer's Powertrain Warranty (this shall apply to the main refurbishment project as well as any awarded optional/additive bid items); and (3) 1 Service/Technical Manual at time of delivery OPTIONAL/ADDITIVE BID ITEMS AS AWARDED 1. PURCHASEAND INSTALLATION OF TWO (2) ILMOR 6.2L GDI (430 HP) GOV. INBOARD ENGINE PACKAGES (OR CITYAPPROVED EQUAL) FOR SEA WATCH 1(2003 Crystaliner) 2. PURCHASEAND INSTALLATION OF TWO (2) ILMOR 6.2L GDI (430 HP) GOV. INBOARD ENGINE PACKAGES (OR CITYAPPROVED EQUAL) FOR SEA WATCH // (2006 Crystaliner) OTHER TERMS & CONDITIONS BRAND NAMES/DEVIATIONS/LATEST MODEL Contractor shall state brand name and/or manufacturer of each item proposed in this Agreement. Guarantee and or warranty shall be stated. Within 14 days (2 Weeks) of Notice of Intent to Award and prior to Notice to Proceed, Successful bidder shall provide a complete build list. Parts and materials shall be latest model or current date and meet specifications. This provision excludes surplus, remanufactured and used products, unless such material proposed is in lieu of items called for. • Equipment or material provided under this Agreement shall substantially comply with specifications. For each stated and described deviation or substitution, detailed specifications shall be provided, including technical data when applicable. As provided in Section 8 of the Agreement, all deviations and substitutions must be approved by the City in advance. DETERMINATION OF SUBSTITUTIONS • The City reserves the right to determine as to whether such substitutions or deviations are within the intent of the specifications and will reasonably meet the service requirements of the City. Furnishing catalog sheets with technical data will not be accepted as proper notice of a substitution or a deviation from the specifications. • If the specification allows for "equal", Contractor shall provide all information with their bid for the City to determine if the product offered is an equal to the brand specified and/or meets the technical specifications. The City reserves the right to determine whether the substitution is equal to the brand specified or the stated technical specifications. The decision of the City regarding equality shall be final. NEW AND UNUSED Unless specifically provided to the contrary, all items and material specified are new and unused and have the current production year. INSPECTION Unless otherwise specified, materials and equipment purchases will be inspected by the City to determine whether they meet the quality requirements of the call for bids. When deemed necessary, samples of supplies or materials will be taken at random from stock received for submission to a commercial laboratory, or other appropriate inspection agency, for analysis and test as to whether the material conforms in all respects to the specifications. In cases where the commercial laboratory report indicates that the material does not meet the specifications, the expense of analysis is to be borne by Contractor and the supplies or materials shall be returned to Contractor at Contractor's expense. VENDOR WARRANTY • Contractor shall fully warrant and guarantee all fabrication, installation and labor/work furnished under this Agreement to be free from defects and in a professional and workmanlike manner, utilizing good marine practices commonly accepted in the industry for a period of not less than 1 year from date of the final acceptance by the City and re -delivery of the vessel. The warranty shall extend to cover all direct damages to the vessel resulting from the original defective work. • While under warranty, Contractor shall repair or replace inoperable equipment or material, at no cost to the City, in a timely manner so as to minimize the possible disruption of City operations resulting from said inoperable equipment or material. MANUFACTURER'S WARRANTY • For any purchased products or equipment that have manufacturer's warranties, a copy of the manufacturer's warranty shall be provided to City. PERFORMANCE BOND • REFER TO BONDING SECTION OF THIS AGREEMENT RECORD KEEPING/AUDITS Contractor shall keep detailed records of payroll, supplies, equipment, materials, and overhead to support the value of invoiced work and shall make the records available to the City upon request in the event of a dispute. Records shall be kept for a minimum of 5 years from receipt of final payment. All records are subject to audit by the City or City representative(s). REJECTION OF WORK • Contractor agrees that the City has the right to make all final determinations as to whether the refurbishment work has been satisfactorily completed. EXHIBIT B SCHEDULE OF BILLING RATES South Coast Shipyard, Inc. Page B-1 EXHIBIT B SCHEDULE OF BILLING RATES BID ITEM COST SECTION 1 LABOR $285,000.00 SECTION 2 MATERIALS $168,000.00 SECTION 3 TAX ON MATERIALS $13,020.00 PICKUP AND DELIVERY No Charge / NA TOTAL BASE BID AMOUNT $466,020.00 CONTINGENCY (10% OF BASE BID AMOUNT) COVERING COST OF UNFORSEEN WORK $46,600.00 ADDITIVE/OPTIONAL BID ITEM NO. 1 (PURCHASEAND INSTALLATION OF TWO (2) ILMOR 6.2L GDI (430 HP) GOV. INBOARD ENGINE PACKAGES (OR CITY APPROVED EQUAL) FOR SEA WATCH 1, WITH POWERTRAIN WARRANTY) $90,000.00 ADDITIVE/OPTIONAL BID ITEM NO. 2 (PURCHASEAND INSTALLATION OF TWO (2) ILMOR 6.2L GDI (430 HP) GOV. INBOARD ENGINE PACKAGES (OR CITY APPROVED EQUAL) FOR SEA WATCH 11, WITH POWERTRAIN WARRANTY) $90,000.00 TOTAL COST: $692,620.00 EXHIBIT C INSURANCE REQUIREMENTS 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 the 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. 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 City Council, boards and commissions, officers, agents, volunteers, employees, and any person or entity owning or otherwise in legal control of the property upon which Contractor performs the Project and/or Services contemplated by this Contract. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its City Council, boards and commissions, officers, agents, volunteers, employees, and any person or entity owning or otherwise in legal control of the property upon which Contractor performs the Project and/or Services contemplated by this Contract. U.S. Longshoremen's and Harbor Workers' Act (USL&H) shall be required for employees performing services covered by said Act. B. General Liability Insurance. Contractor shall maintain commercial general liability insurance, and if necessary excess/umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form South Coast Shipyard, Inc. Page C-1 CG 00 01, in an amount not less than two million dollars ($2,000,000) per occurrence, four million dollars ($4,000,000) general aggregate and four million dollars ($4,000,000) completed operations aggregate. The policy shall cover liability arising from bodily injury, property damage, products - completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). Contractor shall submit to the City, along with a certificate of insurance, any additional insurance requirements stated in Section Four. 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 two million dollars ($2,000,000) combined single limit for each accident. Contractor shall submit to the City, along with a certificate of insurance, any additional insurance requirements stated in Section Four. D. Bailee Coverage. Contractor shall maintain unlimited Bailee Coverage for the full value of any damage or destruction of City property while in the Contractor's possession. E. Excess/Umbrella Liability Insurance. If any Excess or Umbrella Liability policies are used to meet the limits of liability required by this contract, then said policies shall be "following form" of the underlying policy coverage, terms, conditions, and provisions and shall meet all of the insurance requirements stated in this contract, including, but not limited to, the additional insured and primary & non-contributory insurance requirements stated herein. No insurance policies maintained by the City, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor's primary and excess/umbrella liability policies are exhausted. Contractor shall submit to the City, along with a certificate of insurance, any additional insurance requirements stated in Section Four. 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 of City, its City Council, boards and commissions, officers, agents, volunteers, employees, and any person or entity owning or otherwise in legal control of the property upon which Contractor performs the Project South Coast Shipyard, Inc. Page C-2 and/or Services contemplated by this Contract 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 -completed operations, excess/umbrella liability, and automobile liability, if required, shall provide or be endorsed to provide that City, its City Council, boards and commissions, officers, agents, volunteers, employees, and any person or entity owning or otherwise in legal control of the property upon which Contractor performs the Project and/or Services contemplated by this Contract 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 City Council, boards and commissions, officers, agents, volunteers, employees, and any person or entity owning or otherwise in legal control of the property upon which Contractor performs the Project and/or Services contemplated by this Contract. 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 quired coverage except Builders Risk Insurance, which shall contain an endorsement with said required notices. E. Subcontractors. Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. Subcontractors shall maintain commercial general liability 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. 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 South Coast Shipyard, Inc. Page C-3 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. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. City reserves the right to require complete, certified copies of all required insurance policies, at any time. B. City's Right to Revise Requirements. The 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 in Section Four, including required coverage types, limits, endorsements, and notice provisions. Contractor shall ensure that City is an additional insured on 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. E. Requirements not Limiting. Requirements of specific coverage features or limits contained in this Exhibit A 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 South Coast Shipyard, Inc. Page C-4 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. 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 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 insurance 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. South Coast Shipyard, Inc. Page C-5 K. Maintenance of General Liability Coverage. Contractor agrees to maintain commercial general liability coverage for a period of ten (10) years after completion of the Project or to obtain coverage for completed operations liability for an equivalent period. South Coast Shipyard, Inc. Page C-6 �„ .���., '� _� �� �..�. .x�..� EXHIBIT D CITY OF NEWPORT BEACH BOND NO. UCSX372X8170 FAITHFUL PERFORMANCE BOND The premium charges on this Bond is $ $24, 768 , being at the rate of $ 30 thousand of the Agreement price. WHEREAS, the City of Newport Beach, State of California, has awarded to South Coast Shipyard, Inc. hereinafter designated as the "Principal," an agreement for Refurbishment of Lifeguard Rescue Vessel and Purchase and Installation of New Powertrains, in the City of Newport Beach, in strict conformity with the Agreement on file with the office of the City Clerk of the City of Newport Beach, which Is incorporated herein by this reference. WHEREAS, Principal has executed or is about to execute the Agreement and the terms thereof require the furnishing of a Bond for the faithful performance of the Agreement. NOW, THEREFORE, we, the Principal, and United Surety Insurance Company 303 Congress Street, Suite 502, Boston, MA 02210 , duly authorized to transact business under the laws of the State of California as Surety (hereinafter "Surety"), are held and firmly bound unto the City of Newport Beach, In the sum of Four Hundred Sixty Six Thousand Twenty dollar ($466,020.00) lawful money of the United States of America, said sum being equal to 100% of the estimated Base Bid amount of the Agreement, to be paid to the City of Newport Beach, its successors, and assigns; for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, or assigns, jointly and severally, firmly by these present. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, or the Principal's heirs, executors, administrators, successors, or assigns, fail to abide by, and well and truly keep and perform any or all the Work, covenants, conditions, and agreements in the Agreement and any alteration thereof made as therein provided on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to its true intent and meaning, or falls to indemnify, defend, and save harmless the City of Newport Beach, its officers, employees and agents, as therein stipulated, then, Surety will faithfully perform the same, in an amount not exceeding the sum specified in this Bond; otherwise this obligation shall become null and void. As a part of the obligation secured hereby, and in addition to the face amount specified In this Performance Bond, there shall be Included costs and reasonable expenses and fees, including reasonable attorneys fees, incurred by City, only in the event City is required to bring an action in law or equity against Surety to enforce the obligations of this Bond. Surety, for value received, stipulates and agrees that no change, extension of time, alterations or additions to the terms of the Agreement or to the Work to be performed thereunder shall In any way affect its obligations on this Bond, and it does hereby waive South Coast Shipyard, Inc. Page D-1 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of West Virginia County of Hancock On October 20th, 2025 before me, Ralph Earl Brown III, Notary Public (insert name and title of the officer) personally appeared Richard J. Taylor, Attorney -in -Fact who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of West that the foregoing paragraph is true and correct. Virginia WITNESS my hand and official seal. OFFICIAL SEAL STATE OF WEST VIRGINIA NOTARY PUBLIC RALPH EARL BROWN III Signature (Seal) ,r+ CS 171372 POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That United Casualty and Surety Insurance Company, a corporation of the State of Nebraska, and US Casualty and Surety Insurance Company and United Surety Insurance Company, assumed names of United Casualty and Surety Insurance Company (collectively, the Companies), do by these presents make, constitute and appoint: Kelly Specht, Kandis Gregory, Anthony Balzano, JoAnn Smith, Cynthia S. Richter, Richard J. Taylor, Madeline Brown, Zachary R. Bradley, Donna Stolzenbach Felicia Thomas, Dawn E. Gittens, Rick Bredow, Ralph Earl Brown III, Ann Robertson, Kenda Freeman, Alexis Estrada, Deborah Perry, Shaun Sullivan its true and lawful Attorney(s)-in-Fact, each in their separate capacity if more than one is named above, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bonds, recognizances, undertakings or other instruments or contracts of suretyship to include riders, amendments, and consents of surety, providing the bond penalty does not exceed Three Million Five Hundred Thousand & 00/100 Dollars ( $37500,000.00 ). This Power of Attorney shall expire without further action on December 311, 2026. This Power of Attorney is granted under and by authority of the following resolutions adopted by the Board of Directors of the Companies at a meeting duly called and held on the 1" day of July,1993: Resolved that the President, Treasurer, or Secretary be and they are hereby authorized and empowered to appoint Attorneys -in -Fact of the Company, in its name and as its acts to execute and acknowledge for and on its behalf as Surety any and all bonds, recognizances, contracts of indemnity, waivers of citation and all other writings obligatory in the nature thereof, with power to attach thereto the seal of the Company. Any such writings so executed by such Attorneys -in -Fact shall be binding upon the Company as if they had been duly executed and acknowledged by the regularly elected Officers of the Company in their own proper persons. That the signature of any officer authorized by Resolutions of this Board and the Company seal maybe affixed by facsimile to any power of attorney or special power of attorney or certification of either given for the execution of any bond, undertaking, recognizance or other written obligation in the nature thereof; such signature and seal, when soused being hereby adopted by the Company as the original signature of such officer and the original seal of the Company, to be valid and binding upon the Company with the same force and effect as though manually affixed. IN WITNESS WHEREOF, the Companies have caused this instrument to be signed and their corporate seals to be hereunto affixed, this 14th day of March, 2025 9 ucs ( X Corporate Seals Commonwealth of Massachusetts County of Suffolk ss: UNITED CASUALTY AND SURETY INSURANCE COMPANY US Casualty and Surety Insurance Company United Surety Insurance Company le, 61 '�& R. Kyle F ler, Treasurer On this 14th day of March, 2025 before me, Colleen A. Cochrane, a notary public, personally appeared, R. Kyle Fowler, Treasurer of United Casualty and Surety Insurance Company, US Casualty and Surety Insurance Company and United Surety Insurance Company, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person(s), or the entity on behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the Commonwealth of Massachusetts that the foregoing paragraph is true and correct. WITNESS my hand and seal. COLLEEN A.COCHRANE (Seal) V PublicCommonwealth ofhlassadwsells 44:2 Ily Commission Expires 1OW1028 otary Public Commis ion Expires: 10/27/2028 I, Robert F. Thomas, President of United Casualty and Surety Insurance Company, US Casualty and Surety Insurance Company and United Surety Insurance Company do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney, executed by said Companies, which is still in full force and effect; furthermore, the resolutions of the Board of Directors, set out in the Power of Attorney are in full force and effect. In Witness Whereof, I have hereunto set my hand and affixed the seals of said Companies at Boston, Massachusetts this 20th day of October 2025 Corporate Seals ■ '� ' s urn � urs urn Robert F. Thomas, President TO CONFIRM AUTHENTICITY OF THIS BOND OR DOCUMENT EMAIL: CONFIRMBOND@UNITEDCASUALTY.COM notice of any such change, extension of time, alterations or additions of the Agreement or to the Work or to the specifications. This Faithful Performance Bond shall be extended and maintained by the Principal in full force and effect for one (1) year following the date of formal acceptance of the Project by City. In the event that the Principal executed this bond as an individual, it is agreed that the death of any such Principal shall not exonerate the Surety from its obligations under this Bond. IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on the 20th day of October , 20 25 . South Coast Shipyard, Inc. Name of Contractor (Principal) United Surety Insurance Company Name of Surety 303 Congress Street, Suite 502, Boston, MA 02210 Address of Surety 800-829-2663 Telephone APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date:z By: i Aa n C. Harp City Attorney Authorized Signature/Title Authorized Agent S' ature Richard J. Taylor, Attorney -in -Fact Print Name and Title NOTARY ACKNOWLEDGMENTS OF CONTRACTOR AND SURETY MUST BEATTACHED South Coast Shipyard, Inc. Page D-2 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of _ } ss. On 20 before me, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } ss. On , 20before me, , Notary Public, personally appeared proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) Is/are subscribed to the within instrument and acknowledged to me that he/shefthey executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph Is true and correct. WITNESS my hand and official seal. Signature (seal) South Coast Shipyard, Inc. Page D-3 EXHIBIT D CiTY OF NEWPORT BEACH BON® NO. UCSX372Y8170 FAITHFUL PERFORiVIANCE BOND The premium charges on this Bond is $ _ $24, 76s , being at the rate of $ 30 �.�_... thousand of the Agreement price. WHEREAS, the City of Newport Beach., State of California, has awarded to South Coast Shipyard, Inc. hereinafter designated as the "Principal," an agreement for Refurbishment of Lifeguard Rescue Vessel and Purchase and Installation of New Powertrains, in the City of Newport Beach, in strict conformity with the Agreement on file with the office of the City Clerk of the City of Newport Beach, which is incorporated herein by this reference. WHEREAS, Principal has executed or is about to execute the Agreement and the terms thereof require the furnishing of a Bond for the faithful performance of the Agreement. NOW, THEREFORE, we, the Principal, and United Surety Insurance Company 303 Congress Street, Suite 502, Bogton, NIA 02210 duly authorized to transact business under the laws of the State of California as Surety (hereinafter "Surety"), are held and firmly bound unto the City of Newport Beach, In the sum of Four Hundred Sixty Six Thousand Twenty dollar ($466,020.00) lawful money of the United States of America, said sum being equal to 100% of the estimated Base Bid amount of the Agreement, to be paid to the City of Newport Beach, its successors, and assigns; for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, or assigns, Jointly and severally, firmly by these present. THE CONDITiON OF THiS OBLIGATION IS SUCH, that if the Principal, or the Principal's heirs, executors: administrators, successors, or assigns, fail to abide by, and well and truly keep and perform any or all the Work, covenants, conditions, and agreements in the Agreement and any alteration thereof made as therein provided on its part, to be kept and performed at the time and in the manner therein specified, and In all respects according to its true intent and meaning, or falls to indemnify, defend, and save harmless the City of Newport Beach, its officers, employees and agents, as therein stipulated, then, Surety will faithfully perform the same, In an amount not exceeding the sum specified in this Bond; otherwise this obligation shall become null and void. As a part of the obligation secured hereby, and in addition to the face amount specified In this Performance Bond, there shall be Included costs and reasonable expenses and fees, including reasonable attorneys fees, incurred by City, only in the event City is required to bang ,an action in law or equity against Surety to enforce the obligations of this Bond. Surety, for value received, stipulates and agrees that no change, exiension of time, alterations or additions to the terms of the Agreement or to the Work to be performed thereunder shall in any way affect its obligations on this Bond, and it does hereby waive South Coast Shipyard, Inc. Page 0-1 notice of any such change, extension of time, alterations or additions of the Agreement or to the Work or to the specifications. This Faithful Performance Bond shall be extended and maintained by the Principal in full force and effect for one (1) year following the date of formal acceptance of the Project by City. In the event that the Principal executed this bond as an individual, it is agreed that the death of any such Principal shall not exonerate the Surety from its obligations under this Bond. IN WITNESS WHEREOF, this Instrument has been duly executed by the Principal and Surety above named, on the 20th day of October , 20 25 . South Coast Shipyard, Inc.����`J/� - Name of Contractor (Principal) Authorized Signature/Title United Surety Insurance Company Name of Surety 4 r 303 Congress Street, Suite 502, Boston, MA 02210 Address of Surety 800-829-2663 Telephone APPROVED AS TO FORM: CITY ATTORNEYS OFFICE Date: M Aaron C. Harp City Attorney Authorized Agent S' ature Richard J. Taylor, Attorney -in -Fact Print Name and Title NOTARY ACKNOWLEDGMENTS OF CONTRACTOR AND SURETY MUST REATTACHED South Coast Shipyard, Inc. Page D-2 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of C>r } ss. On . LI , Z , 20 aS before meZe-amvQ. i eDC-fY ,A0. Notary Public, personally appeared (b&yw who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 0my JEANNE BARRENA WITNESS my hand and official seal. Notary Public • California Orange County Commission N 2387259 Comm. Expires Dec 17, 2025 Signatu a (seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of Callfomia County of Z ss. On , 20before me, Notary Public, personally appeared proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) Is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the Instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph Is true and correct. WITNESS my hand and official seal. Signature (seal) Page D-3 South Coast Shipyard, Inc. ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of West Virginia County of Hancock } On October 20th, 2025 before me, Ralph Earl Brown III, Notary Public (insert name and title of the officer) personally appeared Richard J. Taylor, Attorney -in -Fact who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of West that the foregoing paragraph is true and correct. Virginia WITNESS my hand and official seal. OFFICIAL SEAL STATE OF WEST VIRGINIA NOTARY PUBLIC @3648 RALPH EARL BROWN III Lindberg Way Weirton, WV 26062 My Commission Expires October 10, 2029 Signature (Seal) swo ucs POWER OF ATTORNEY 171372 KNOW ALL MEN BY THESE PRESENTS: That United Casualty and Surety Insurance Company, a corporation ofthe State of Nebraska, and US Casualty and Surety Insurance Company and United Surety Insurance Company, assumed names of United Casualty and Surety Insurance Company (collectively, the Companies), do by these presents make, constitute and appoint: Kelly Specht, Kandis Gregory, Anthony Balzano, JoAnn Smith, Cynthia S. Richter, Richard 1. Taylor, Madeline Brown, Zachary R. Bradley, Donna Stolzenbach Felicia Thomas, Dawn E. Gittens, Rick Bredow, Ralph Earl Brown III, Ann Robertson, Kenda Freeman, Alexis Estrada, Deborah Perry, Shaun Sullivan its true and lawful Attorney(s)-in-Fact, each in their separate capacity if more than one is named above, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bonds, recognizances, undertakings or other instruments or contracts of suretyship to include riders, amendments, and consents of surety, providing the bond penalty does not exceed Three Million Five Hundred Thousand & 00/100 Dollars ( $3,500,000.00 ). This Power of Attorney shall expire without further action on December 31rt, 2026. This Power of Attorney is granted under and by authority of the following resolutions adopted by the Board of Directors of the Companies at a meeting duly called and held on the 1 * day of July,1993: Resolved thatthe President, Treasurer, or Secretary be and they are hereby authorized and empowered to appoint Attorneys -in -Fact of the Company, in its name and as its acts to execute and acknowledge for and on its behalf as Surety any and all bonds, recognizances, contracts of indemnity, waivers of citation and all other writings obligatory in the nature thereof, with power to attach thereto the seal of the Company. Any such writings so executed by such Attorneys -in -Fact shall be binding upon the Company as ifthey had been duly executed and acknowledged by the regularly elected Officers of the Company in their own proper persons. That the signature of any officer authorized by Resolutions of this Board and the Company seal maybe affixed by facsimile to any power of attorney or special power of attorney or certification of either given for the execution of any bond, undertaking, recognizance or other written obligation in the nature thereof; such signature and seal, when soused being hereby adopted by the Company as the original signature of such officer and the original seal of the Company, to be valid and binding upon the Company with the same force and effect as though manually affixed. IN WITNESS WHEREOF, the Companies have caused this instrument to be signed and their corporate seals to be hereunto affixed, this 14th day of March, 2025 Corporate Seals Commonwealth of Massachusetts County of Suffolk ss: UNITED CASUALTY AND SURETY INSURANCE COMPANY US Casualty and Surety Insurance Company United Surety Insurance Company 6 R. Kyle F ler, Treasurer On this 14th day of March, 2025 , before me, Colleen A. Cochrane, a notary public, personally appeared, R. Kyle Fowler, Treasurer of United Casualty and SuretyInsurance Company, US Casualty and Surety Insurance Company and United Surety Insurance Company, who proved tome on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person(s), or the entity on behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the Commonwealth of Massachusetts that the foregoing paragraph is true and correct. WITNESS my hand and seal. COLLEEI!!L COCRUE (Seal) Public, Commwwfeamofkussadxusetts IN CummisOn Ei#tes *2it2026 otary Public Commis ion Expires: 10/27/2028 I, Robert F. Thomas, President of United Casualty and Surety Insurance Company, US Casualty and Surety Insurance Company and United Surety Insurance Company do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney, executed by said Companies, which is still in full force and effect; furthermore, the resolutions of the Board of Directors, set out in the Power of Attorney are in full force and effect. In Witness Whereof, I have hereunto set my hand and affixed the seals of said Companies at Boston, Massachusetts this 20th day of October 2025 Corporate Seals ■J ° y1s'Robert F. Thomas, President ucs � uc•s,E(�N TO CONFIRM AUTHENTICITY OF THIS BOND OR DOCUMENT EMAIL: CONFIRMBOND@UNITEDCASUALTY.COM ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } ss. On 20 before me, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } ss. On 20 before me, Notary Public, personally appeared proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) South Coast Shipyard, Inc. Page D-3