HomeMy WebLinkAbout07 - Amendment to PSA's for Water, Wastewater and Storm Drain ServicesQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
December 9, 2025
Agenda Item No. 7
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Mark Vukojevic, Utilities Director - 949-644-3011,
mvukojevic@newportbeachca.gov
PREPARED BY: Joshua Rosenbaum, Senior Management Analyst - 949-644-3057
josenbaum@newportbeachca.gov
TITLE: Amendment No. One to On -Call Service Agreements with GCI
Construction, Inc. and T.E. Roberts, Inc. for Water, Wastewater and
Storm Drain Services
ABSTRACT:
The Utilities Department utilizes on -call contractors for the City's water, wastewater and
storm drain systems. Over the last few years, these contractors have been used for on -
call tasks, repair projects and emergencies of various complexities. Staff is requesting
City Council approval of amendments to increase the agreement amount of both GCI
Construction, Inc. and T.E. Roberts, until their agreements expire in 2028.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Authorize the Mayor and City Clerk to execute Amendment No. One to the On -Call
Maintenance and Repair Services Agreement with GCI Construction, Inc. to increase
the agreement amount by $1,000,000, for a total not -to -exceed amount of $2,500,000-1
and
c) Authorize the Mayor and City Clerk to execute Amendment No. One to the On -Call
Maintenance and Repair Services Agreement with T.E Roberts, Inc. to increase the
agreement amount by $1,000,000, for a total not -to -exceed amount of $2,500,000.
DISCUSSION:
The Utilities Department maintains hundreds of miles of water, wastewater and storm
drain pipelines and appurtenant facilities such as pump stations, pressure stations,
reservoirs, treatment facilities, well sites, fire hydrants, valves, manholes and
communication equipment. The maintenance and operation of these systems are
administered by licensed City staff. At times, the Utilities Department requires the
assistance from contractors to provide supplemental manpower, backlog reduction,
expertise, equipment, special repairs, supplemental capital improvements and
emergency services. Examples include deep excavations that require specialized
Amendment No. One to On -Call Service Agreements with GCI Construction, Inc. and
T.E. Roberts, Inc. for Water, Wastewater and Storm Drain Services
December 9, 2025
Page 2
shoring, storm damage repairs, dewatering, pipe welding, heavy and specialized
equipment, emergency pipe repairs, utility locating/pothole services, and complex utility
situations requiring several days of work.
Decisions to use these contractors are typically based on the size and complexity of the
repair or emergency, availability of staff and contract resources, shoring needs, expected
duration of the repair and anticipated costs. When using contract resources, City staff
oversees the repair. Typically, staff also provide supplemental services to save costs and
expedite repairs.
On May 23, 2023, City Council approved seven on -call agreements (following a Request
for Qualifications process). Each contractor within their work specialty is asked to submit
cost -competitive proposals and their availability to perform work. Over the last years, all
seven of the contractors have been utilized for various City projects. GCI Construction,
Inc. and T.E. Roberts, both earned the two highest rankings during the qualification
process. They have demonstrated a proven track record of delivering the best pricing
value, high quality work and reliability.
The higher than anticipated volume of projects has exhausted a high percentage of their
authorized agreement compensation. Staff is requesting amendments to increase GCI
Construction, Inc. and T.E. Roberts agreements by $1 million each. Their total 5-year on -
call agreement amounts will increase from $1.5 million to $2.5 million.
FISCAL IMPACT:
No additional General Funds are required. The adopted budget includes sufficient funding
for these services. The agreements are funded from various annual maintenance and
repair accounts in the water, wastewater, and storm drain budgets within the Utilities
Department, as well as the Public Work's Department Capital Improvement project
accounts. Over the past few years, the department averaged approximately $800,000 to
$1 million in annual water, wastewater and storm drain repairs and emergencies across
all contracted work and projects. A typical on -call project is approximately $50,000. In the
event of major repair projects or emergencies that exceed the annual budget
appropriation, a budget amendment would be brought to City Council.
ENVIRONMENTAL REVIEW
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
Amendment No. One to On -Call Service Agreements with GCI Construction, Inc. and
T.E. Roberts, Inc. for Water, Wastewater and Storm Drain Services
December 9, 2025
Page 3
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Amendment No. One to the On -Call Agreement with T.E. Roberts
Attachment B — Amendment No. One to the On -Call Agreement with GCI Construction
ATTACHMENT A
AMENDMENT NO. ONE TO
ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT
WITH T.E. ROBERTS, INC. FOR
ON -CALL WATER, WASTEWATER AND STORM DRAIN SERVICES
THIS AMENDMENT NO. ONE TO ON -CALL MAINTENANCE/REPAIR
SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this
4th day of November, 2025 ("Effective Date"), by and between the CITY OF NEWPORT
BEACH, a California municipal corporation and charter city ("City"), and T.E. ROBERTS,
INC., a California corporation ("Contractor"), whose address is 17771 Mitchell North,
Irvine, CA 92614, and is made with reference to the following:
RECITALS
A. On May 23, 2023, City and Contractor entered into an On -Call Maintenance/
Repair Services Agreement (Contract No. C-9314-1) ("Agreement") to engage
Contractor to perform on -call maintenance and/or repair services for water,
wastewater and storm drains ("Project").
B. Since entering into the Agreement, Contractor was asked to perform a higher
volume of Work than was originally anticipated.
C. The parties desire to enter into this Amendment No. One to increase the total
compensation for the higher volume of work, and to update the insurance
requirements.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. COMPENSATION TO CONTRACTOR
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "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 Letter Proposal 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 the City's Utility Director
or designee. Contractor's compensation for all Services performed in accordance with
this Agreement, including all reimbursable items, shall not exceed Two Million Five
Hundred Thousand Dollars and 001100 ($2,500,000.00) without prior written
amendment to the Agreement."
The total amended compensation reflects Contractor's additional compensation for
additional Services to be performed in accordance with this Amendment No. One,
including all reimbursable items and subconsultant fees, in an amount not to exceed One
Million Dollars and 001100 ($1,000,000.00).
2. INSURANCE
As of this Effective Date of this Amendment No
shall be deleted in its entirety and replaced with
incorporated herein by reference. Any reference to
hereafter refer to Exhibit C attached hereto.
3. INTEGRATED CONTRACT
One, Exhibit C of the Agreement
Exhibit C, attached hereto and
Exhibit C in the Agreement shall
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
T.E. ROBERTS, INC. Page 2
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:
By: n �1
a on C. Harp
Ci y Attorney
ATTEST:
Date:
By:
Lena Shumway
City Clerk
Attachments:
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
in
Joe Stapleton
Mayor
CONTRACTOR: T.E. ROBERTS, INC., a
California corporation
Date: 11- 5.25
Timothy E Roberts
Chief Executive Officer
Date: 11- S -ZS
By:
Jin<n M Roberts
Secretary
[END OF SIGNATURES]
Exhibit C - Insurance Requirements
T.E. ROBERTS, INC. Page 3
EXHIBIT C
INSURANCE REQUIREMENTS — MAINTENANCEIREPAIRIJANITORIAL
SERVICES
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 Agreement, 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, statutory limits, and Employer's Liability
Insurance with limits of at least one million dollars ($1,000,000) each
accident 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.
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 and employees.
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 two million dollars
($2,000,000) per occurrence, four million dollars ($4,000,000) general
aggregate. The policy shall cover liability arising from premises,
operations, 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).
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
Agreement, including coverage for any owned, hired, non -owned or
T.E. ROBERTS, INC. Page C-1
rented vehicles, in an amount not less than one million dollars
($1,000,000) combined single limit each accident.
D. Umbrella or Excess Liability Insurance. Contractor shall obtain and
maintain an umbrella or excess liability insurance policy with limits of not
less than one million dollars ($1,000,000) that will provide bodily injury,
personal injury and property damage liability coverage at least as broad
as the primary coverages set forth above. Such policy or policies shall
include the following terms and conditions;
• A drop down feature requiring the policy to respond in the event that
any primary insurance limits are exhausted by paid claims;
• Pay on behalf of wording as opposed to reimbursement;
• Concurrency of effective dates with primary policies;
• Policies shall "follow form" to the underlying primary policies; and
• Insureds under primary policies shall also be insureds under the
umbrella or excess policies.
E. Pollution Liability Insurance, If required, Contractor shall maintain a
policy providing contractor's pollution liability ("CPL") coverage with a
total limit of liability of no less than one million dollars ($1,000,000) per
loss and two million dollars ($2,000,000) in the aggregate per policy
period. Claims -made policies require a 5-year extended reporting
period. The CPL policy shall include coverage for cleanup costs, third -
party bodily injury and property damage, including loss of use of
damaged property or of property that has not been physically injured or
destroyed, resulting from pollution conditions caused by contracting
operations. Coverage as required in this paragraph shall apply to
sudden and non -sudden pollution conditions resulting from the escape
or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals,
liquids, or gases, waste materials, or other irritants, contaminants, or
pollutants. The CPL shall also provide coverage for transportation and
off -Site disposal of materials. The policy shall not contain any provision
or exclusion (including any so-called "insured versus insured" exclusion
or "cross -liability" exclusion) the effect of which would be to prevent, bar,
or otherwise preclude any insured or additional insured under the policy
from making a claim which would otherwise be covered by such policy
on the grounds that the claim is brought by an insured or additional
insured against an insured or additional insured under the policy.
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 Agreement shall be endorsed to waive subrogation
T.E. ROBERTS, INC. Page C-2
against City, its City Council, boards and commissions, officers, agents,
volunteers and employees 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 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 City Council, boards and commissions, officers,
agents, volunteers and employees shall be included as insureds under
such policies.
C. Primary and Non Contributory. All liability coverage shall apply on a
primary basis and shall not require contribution from any insurance or
self-insurance maintained by City.
D. Notice of Cancellation. All policies shall provide City with thirty (30)
calendar days notice of cancellation (except for nonpayment for which
ten (10) calendar days notice is required) or nonrenewal of coverage for
each required coverage.
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.
Insurance certificates and endorsement 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 Agreement. 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. City reserves the right at any time
during the term of the Agreement to change the amounts and types of
insurance required by giving Contractor sixty (60) calendar days
T.E. ROBERTS, INC. Page C-3
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 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 Agreement 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 Section 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 insurance proceeds in
excess of the specified minimum limits of insurance and coverage shall
be available to the City.
F. Self -insured Retentions. Any self -insured retentions must be declared
to and approved by City. City reserves the right to require that self -
insured retentions be eliminated, lowered, or replaced by a deductible.
Self-insurance will not be considered to comply with these requirements
unless approved by City.
G. Clty Remedies for Non -Compliance. If Contractor or any subcontractor
falls 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 Agreement, 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
T.E. ROBERTS, INC. Page C-4
Contractor's performance under this Agreement, 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.
Contractor's Insurance. Contractor shall also procure and maintain, at
its own cost and expense, any additional kinds of insurance, which in its
own judgment may be necessary for its proper protection and
prosecution of the Work.
T.E. ROBERTS, INC. Page C-5
ATTACHMENT B
AMENDMENT NO. ONE TO
ON -CALL MAINTENANCEIREPAIR SERVICES AGREEMENT
WITH GCI CONSTRUCTION, INC. FOR
ON -CALL WATER, WASTEWATER AND STORM DRAIN SERVICES
THIS AMENDMENT NO. ONE TO ON -CALL MAINTENANCE/REPAIR
SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this
4th day of November, 2025 ("Effective Date"), by and between the CITY OF NEWPORT
BEACH, a California municipal corporation and charter city ("City"), and GCI
CONSTRUCTION, INC., a California corporation ("Contractor"), whose address is 1031
Calle Recodo, Suite D, San Clemente, CA 92673, and is made with reference to the
following:
RECITALS
A. On May 23, 2023, City and Contractor entered into an On -Call Maintenance/
Repair Services Agreement (Contract No. C-9315-1) ("Agreement") to engage
Contractor to perform on -call maintenance and/or repair services for water,
wastewater and storm drains ("Project").
B. Since entering into the Agreement, Contractor was asked to perform a higher
volume of Work than was originally anticipated.
C. The parties desire to enter into this Amendment No. One to increase the total
compensation for the higher volume of work, and to update the insurance
requirements.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. COMPENSATION TO CONTRACTOR
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "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 Letter Proposal 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 the City's Utility Director
or designee. Contractor's compensation for all Services performed in accordance with
this Agreement, including all reimbursable items, shall not exceed Two Million Five
Hundred Thousand Dollars and 001100 ($2,500,000.00) without prior written
amendment to the Agreement."
The total amended compensation reflects Contractor's additional compensation for
additional Services to be performed in accordance with this Amendment No. One,
including all reimbursable items and subconsultant fees, in an amount not to exceed One
Million Dollars and 001100 ($1,000,000.00).
2. INSURANCE
As of this Effective Date of this Amendment No
shall be deleted in its entirety and replaced with
incorporated herein by reference. Any reference to
hereafter refer to Exhibit C attached hereto.
3. INTEGRATED CONTRACT
One, Exhibit C of the Agreement
Exhibit C, attached hereto and
Exhibit C in the Agreement shall
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
GC1 CONSTRUCTION, INC. Page 2
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: 10 Zt Z —
By:�
r n Harp
City Attorney
ATTEST:
Date:
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
i
Joe Stapleton
Mayor
CONTRACTOR: GCI CONSTRUCTION,
INC., a California corporation
Date: 111es16kpaS
By: By:
Lena Shumway Alan Aris fondo
City Clerk Chief Executive Officer
Date:
Richard Kay
Chief Financial
[END OF SIGNATURES]
Attachments: Exhibit C -- Insurance Requirements
GCI CONSTRUCTION, INC. Page 3
EXHIBIT C
INSURANCE REQUIREMENTS — MAINTENANCE/REPAIR/JANITORIAL
SERVICES
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 Agreement, 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, statutory limits, and Employer's Liability
insurance with limits of at least one million dollars ($1,000,000) each
accident 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.
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 and employees.
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 two million dollars
($2,000,000) per occurrence, four million dollars ($4,000,000) general
aggregate. The policy shall cover liability arising from premises,
operations, 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).
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
Agreement, including coverage for any owned, hired, non -owned or
GCI CONSTRUCTION, INC. Page C-1
rented vehicles, in an amount not less than one million dollars
($1,000,000) combined single limit each accident.
D. Umbrella or Excess Liability insurance. Contractor shall obtain and
maintain an umbrella or excess liability insurance policy with limits of not
less than one million dollars ($1,000,000) that will provide bodily injury,
personal injury and property damage liability coverage at least as broad
as the primary coverages set forth above. Such policy or policies shall
include the following terms and conditions:
• A drop down feature requiring the policy to respond in the event that
any primary insurance limits are exhausted by paid claims;
• Pay on behalf of wording as opposed to reimbursement;
• Concurrency of effective dates with primary policies;
• Policies shall "follow form" to the underlying primary policies; and
• Insureds under primary policies shall also be insureds under the
umbrella or excess policies.
E. Pollution Liability Insurance. If required, Contractor shall maintain a
policy providing contractor's pollution liability ("CPL") coverage with a
total limit of liability of no less than one million dollars ($1,000,000) per
loss and two million dollars ($2,000,000) in the aggregate per policy
period. Claims -made policies require a 5-year extended reporting
period. The CPL policy shall include coverage for cleanup costs, third -
party bodily injury and property damage, including loss of use of
damaged property or of property that has not been physically injured or
destroyed, resulting from pollution conditions caused by contracting
operations. Coverage as required in this paragraph shall apply to
sudden and non -sudden pollution conditions resulting from the escape
or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals,
liquids, or gases, waste materials, or other irritants, contaminants, or
pollutants. The CPL shall also provide coverage for transportation and
off -Site disposal of materials. The policy shall not contain any provision
or exclusion (including any so-called "insured versus insured" exclusion
or "cross -liability" exclusion) the effect of which would be to prevent, bar,
or otherwise preclude any insured or additional insured under the policy
from making a claim which would otherwise be covered by such policy
on the grounds that the claim is brought by an insured or additional
insured against an insured or additional insured under the policy.
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 Agreement shall be endorsed to waive subrogation
GCI CONSTRUCTION, INC. Page C-2
against City, its City Council, boards and commissions, officers, agents,
volunteers and employees 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 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 City Council, boards and commissions, officers,
agents, volunteers and employees shall be included as insureds under
such policies.
C. Primary and Non Contributory. All liability coverage shall apply on a
primary basis and shall not require contribution from any insurance or
self-insurance maintained by City.
D. Notice of Cancellation. All policies shall provide City with thirty (30)
calendar days notice of cancellation (except for nonpayment for which
ten (10) calendar days notice is required) or nonrenewal of coverage for
each required coverage.
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.
Insurance certificates and endorsement 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 Agreement. 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. City reserves the right at any time
during the term of the Agreement to change the amounts and types of
insurance required by giving Contractor sixty (60) calendar days
GCI CONSTRUCTION, INC. Page C-3
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 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 Agreement 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 Section 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 insurance proceeds in
excess of the specified minimum limits of insurance and coverage shall
be available to the City.
F. Self -insured Retentions. Any self -insured retentions must be declared
to and approved by City. City reserves the right to require that self -
insured retentions be eliminated, lowered, or replaced by a deductible.
Self-insurance will not be considered to comply with these requirements
unless approved by City.
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 Agreement, 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
GCI CONSTRUCTION, INC. Page C-4
Contractor's performance under this Agreement, 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.
Contractor's Insurance. Contractor shall also procure and maintain, at
its own cost and expense, any additional kinds of insurance, which in its
own judgment may be necessary for its proper protection and
prosecution of the Work.
GCI CONSTRUCTION, INC. Page C-5
GCI CONSTRUCTION Effective 7/1/2025 - 6/30/2026
EQUIPMENT OPERATED RATE SCHEDULE
DESCRIPTION
OPERATED
FOREMAN PICK UP TRUCK
43.00
HOUR
CREW TRUCK
55.00
HOUR
STAKE BED TRUCK
64.00
HOUR
10 WHEELER DUMP TRUCK
115.00
HOUR
SUPER 10
120.00
HOUR
130/Hr for DIR Projects
BOTTOM/SEMI END DUMP
130.00
HOUR
130IHr for DIR Projects
LOW BED RATE
218.00
HOUR
SKIPLOADER
202.00
HOUR
BOBCAT
190.00
HOUR
446D BACKHOEILOADER
220.00
HOUR
KOMATSU WHEEL LOADER
226.00
HOUR
CAT 950 G LOADER
230.00
HOUR
JD 450 WITH BOARD
213.00
HOUR
CAT 308 EXCAVATOR
207.00
HOUR
CAT 314 EXCAVATOR
242.00
HOUR
CAT 325 EXCAVATOR
265.00
HOUR
CAT 321CLCR EXCAVATOR
265.00
HOUR
KOBELCO SK300 LC1V EXCAVATOR
300.00
HOUR
CAT 824C DOZER
269.00
HOUR
CASE 8651CAT 140M MOTOR GRADER
284.00
HOUR
VACTOR VACUME TRUCK
278.00
HOUR
ASPHALT ZIPPER
272.00
HOUR
Pius Teeth
ARROWBOARD
100.00
DAY
300IWK
MESSAGE BOARD
185.00
DAY
6001WK
WATER TRUCK
220.00
DAY
COMPACTION WHEEL
30.00
HOUR
COMPRESSOR WIJACKHAMMER
300.00
DAY
2000 MULTIQUIP TOWABLE GENERATOR
288.00
DAY
629IWK
HYDRAULIC BREAKER
60.00
HOUR
2000 LBS
LIGHT TOWER
138.00
DAY
WACKER
138.00
DAY
Zieman Trailer
30.00
HOUR
4" trash pump & hoses
138.00
DAY
6 x 16 Trench Box
110.00
DAY
293IWK
4 x 16 Trench Box
100.00
DAY
1961WK
8 x 24 Trench Box
66.00
DAY
6381WK
continued Page 2 ...
LABOR RATES:
LABORER GRADING (GROUP 1)
LABORER SEWER (GROUP 1)
LABORER WATER (GROUP I)
PIPELAYER GRADING (GROUP IV)
PIPELAYER SEWER (GROUP IV)
PIPELAYER WATER (GROUP IV)
OPERATOR GRADING (GROUP VIII)
OPERATOR SEWER (GROUP VIII)
OPERATOR WATER (GROUP VI11)
FOREMAN GRADING (GROUP VIII)
FOREMAN SEWER (GROUP VIII)
FOREMAN WATER (GROUP VIII)
WATER TRUCK LABORER GRADING
WATER TRUCK LABORER SEWER
WATER TRUCK LABORER WATER
89.65
118.97
148.28
90.28
119.87
149.47
89.63
118.93
148.23
93.00
123.98
154.96
93.65
124.94
156.22
92.97
123.24
154.91
126.23
169.59
212.94
127,08
170.84
214.60
126.19
169.53
212.87
128.84
173.51
218.18
129.72
174.80
219.88
128.80
173.45
218.10
103.92
138.90
173.89
104.65
139.98
175.30
103.88
138.86
173.83
MARK UP ON LABOR 20%
MARK UP ON EQUIPMENTIMATERIAL 15%
MARK UP ON SUBCONTRACTOR 5%
BOND COST IS 2.4% OF THE TOTAL CONTRACT AMOUNT
***DIR PROPOSED RATE INCREASE FOR JULY 2026 - JUNE 2027, TBD***