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HomeMy WebLinkAboutC-4330 - Repair Services for FRP Chemical TankCONTRACT WITH FIBER -TECH ENGINEERING, INC. FOR REPAIR SERVICES FOR FRP CHEMICAL TANK THIS CONTRACT is made and entered into as of this AZ day of July, 2009, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation and Charter City ( "City'), and FIBER -TECH ENGINEERING, INC., whose principal place of business is 611 Rock Springs Road, Escondido, California 92025 ( "Contractor"), 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 is planning to have a Fiberglass Reinforced Plastic (FRP) chemical tank repaired. C. City desires to engage Contractor to repair /reline the FRP chemical tank at Big Canyon Reservoir ( "Project'). Contractor has agreed to perform the Project within a 60 day period, commencing on July 20, 2009. D. Contractor has examined the location of all proposed work, carefully reviewed and evaluated the specifications set forth by the City for the Project, and is familiar with all conditions relevant to the performance of services and has committed to perform all work required for the price specified in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. SCOPE OF WORK Contractor shall perform all the "services described in the Scope of Work attached hereto as Exhibit A and incorporated herein by this reference. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing the work and services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be of good quality. For purposes of this Agreement, the phrase "highest professional standards" shall mean those standards of practice recognized by one or more first -class firms performing similar work under similar circumstances. Contractor shall perform everything required to be performed, and shall provide and furnish all the labor, materials, necessary tools, expendable equipment and all utility and transportation services necessary for the Project. 2. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and Contractor shall complete the Work within the time set forth in this Section. The failure by Contractor to meet this deadline may result in termination of this Agreement by City and assessment of damages as outlined in Section 2.1. Project shall be completed within 60 days of receiving Notice to Proceed. 3. COMPENSATION As full compensation for the performance and completion of the Project as required by the Scope of Work, City shall pay to Contractor and Contractor accepts as full payment the sum of Sixteen Thousand Two Hundred Three Dollars and No /100 ($16,203.00). Contractor shall not receive any additional compensation unless approved in advance by the City in writing. The City shall make full payment to Contractor no later than 30 days after completion and acceptance of the Project. CwommaZi9i �IFAiZT- if GJZ1 This Agreement will be administered by the Utilities Department. Kent Russell shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his /her authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 5. TYPE AND INSTALLATION OF MATERIALSISTANDARD OF CARE 5.1 Contractor shall use only the standard materials described in Exhibit A in performing services under this Agreement. Any deviation from the materials described in Exhibit A shall not be installed unless approved in advance by the City Administrator. 5.2 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. All services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. 6. RESPONSIBILITY FOR DAMAGES OR INJURY 6.1 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 subconcontractors, or its workers, or anyone employed by either of them. 6.2 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 the Contractor. 6.3 Contractor shall indemnify, hold harmless, and defend City, its officers and employees from and against: (1) any and all loss, damages, liability, claims, allegations of liability, suits, costs and expenses for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, property damage, or any other claims arising from any and all acts or omissions of Contractor, its employees, agents or subcontractors in the performance of services or work conducted or performed pursuant to this Agreement; (2) use of improper materials in performing this Project including, without limitation, defects in workmanship or materials and /or design defects; and /or (3) any and all claims asserted by Contractor's subconcontractors or suppliers on the Project, and shall include reasonable attorneys' fees and all other costs incurred in defending any such claim. However, nothing herein shall require Contractor to indemnify City from the sole negligence or willful misconduct of City, ifs officers or employees. 6.4 Contractor shall perform all Project work in a manner to minimize public inconvenience and possible hazard, to restore other work areas to their original condition and former usefulness as soon as possible, and to protect public and private property. Contractor shall be liable for any private or public property damaged during the performance of the Project work. 6.5 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. 6.6 Nothing in this section shall be construed as authorizing any award of attorney's fees in any action to enforce the terms of this Agreement, except to the extent provided in Section 6.3 above. 6.7 The rights and obligations set forth in this Section shall survive the termination of this Contract. INDEPENDENT CONTRACTOR City has retained Contractor as an independent contractor and neither Contractor nor its employees are to be considered employees of the City. The manner and means of conducting the work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment shall accrue to Contractor or its employees. a. COOPERATION Contractor agrees to work closely and cooperate fully with Citys designated Project Administrator and any other agencies that may have jurisdiction or interest in the work to be performed. City agrees to cooperate with the Contractor on the Project. 9. INSURANCE Without limiting Contractor's indemnification of City, and orior to commencement of work,, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit or performance of any work. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. 3 B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. 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. D. Coverage Requirements. Workers' Compensation Coverage. Contractor shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees 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 the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non - payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. ii. General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. iii. Automobile Liability Coverage. Contractor shall maintain automobile insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non - owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each occurrence. E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Contractor's operations or services provided to City. Any insurance maintained by City, including any self- insured retention City 13 may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non - payment of premium) written notice has been received by City. F. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Contractor's performance under this Contract. G. Additional 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. 10. SUBCONTRACTING The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Contractor. Assignments of any or all rights, duties or obligations of the Contractor under this Agreement will be permitted only with the express written consent of City. Contractor shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of City. 11. WITHHOLDINGS City may withhold payment to Contractor of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Contract. Contractor shall not discontinue work as a result of such withholding. Contractor shall have an immediate right to appeal to the City Manager or 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. 12. SUBCONTRACTING The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Contractor. Assignments of any or all rights, duties or obligations of the Contractor under this Agreement will be permitted only with the express written consent of City. Contractor 5 shall not subcontract any portion of the work to be performed under this Agreement without written authorization of City. 13. WITHHOLDINGS City may withhold payment to Contractor of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Contract. Contractor shall not discontinue work as a result of such withholding. Contractor shall have an immediate right to appeal to the City Manager or 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. 14. CONFLICTS OF INTEREST The Contractor or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the work performed under this Contract, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. If subject to the Act, Contractor shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Contract by City. Contractor shall indemnify and hold harmless City for any and all claims for damages resulting from Contractor's violation of this Section. 15. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, to City by Contractor and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first -class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Attn: Kent Russell Utilities Department City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92660 Phone: 949 - 644 -3011 Fax: 949 - 646 -5204 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attention: Jeh Mody Fiber -Tech Engineering, Inc. 611 Rock Springs Road Escondido, CA 92025 Phone: 760 - 735 -6277 Fax: 760 - 735 -6274 0 16. TERMINATION 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, the non - defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. Notwithstanding the above provisions, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving seven (7) calendar days prior written notice to Contractor. In the event of termination under this Section, City shall pay Contractor for services satisfactorily performed and costs incurred up to the effective date of termination for which Contractor has not been previously paid. On the effective date of termination, Contractor shall deliver to City all materials purchased in performance of this Agreement. 17. 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. 18. WAIVER A waiver by City of any term, covenant, or condition in the Agreement shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition. 19. INTEGRATED AGREEMENT 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. 20. CONFLICTS OR INCONSISTENCIES In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services, the terms of this Agreement shall govern. 21. 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. 22. EFFECT OF CONTRACTOR'S EXECUTION Execution of this Agreement by Contractor is a representation that Contractor has 7 visited the Project Site, has become familiar with the local conditions under which the work is to be performed, and has taken into consideration these factors in submitting its Project Proposal and Scope of Work. 23. CONTROLLING LAW AND VENUE The laws of the State of California shall govem 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. 24. 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. 25. WARRANTY FIBER -TECH ENGINEERING, INC. (FTE) warrants that the repair /relining of the FRP Tank inside side wall and bottom (PRODUCT /S), shall be free from defects in material and workmanship under normal use and service for a period of one (1) year from the date of repair (Exhibit B). IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: OFFICE OF CITY ATTORNEY: 01 By: ynette D. ech p, Assistant City A rney ATTEST: By: Pr In, U'/ Leilani Brown, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation B - — ____ ��Z eo e M rdoch, Utilities Director CONTRACTOR: FIBER -TECH ENGINEERING, INC. By: Title: President Name: Jerold Burke By: (Financial Officer) Title: Secretary Name: Patricia Burke Attachments: Exhibit A - Scope of Services Exhibit B — Warranty .01 QQQFiber Tech EXHIBIT °A' QUOTATION June 25, IM Page 1 of 1 To: City of Newport Atin, Landin Miller Project Reference: Big Canyon Reservoir Quote # 29189 Rem Description Raft 9ft Total 1 AN labor and materials to fiberglass line a WO X 9.5' tall FRP tank for 12.5% concentration Sodium Hypochlorlte storage. Lining will be carried outas,dutflned and recommended by the renin manufacturer. Lot $16,205.00 CA Contractor's License #808046 Work will be carried out by experienced technicians with over 40 years ice in corrosion resistant fiberglass faiiricallOn and lkdng. "T &C FORM 99 ATTACHED IANLL GOVERN ALL PURCHASE ORDERS RESULTING FROM THE QUOTATION. We thank you for this opportunity to submit our proposal and If you have any questions, please do not hesitate to contact us. For further informatien. on Fiber -Tech Engineering, please visit our web site www.fi bertecheno. corn. Jeh Mody Project Manager inycly6ftertecheng.oarn 611 Rock Springs Road Escondido, CA. 92025 (760) 735 -6277 Fax (760) 735 -6274 1- 888 -NEED FRP Terms and Conditions By Acceptance of this Offer the Buyer Expressly Agrees; 2. MODIFICATION. No weiver or modification of cr addition to the terms and condtions contained herein shag be valid unless IawcNOg and signed by the dugr e-dhnd m cep:oserdative of Fiber-Tech Engineering, lac. CONTINGENCIES• Ef her- TachEngioeedgg,Inc.shatimtbe held ltabtaor deemed IndafauliIf pmwaiedfrnm performing any of the obligations of the Agreement due to causes beyond Its reasonable control such as fire, good, drought, act of God, war, riot, strikes, differences with workman, lockouts, epidemics, quarantines, delays In transportation, shortage of cars, fuel, labor or materials, embargo, or governmental orders or actions which in any way interfere with the purchase or mamdachmn or flow of the necessary materials, products or labor required to manula re or fabricate the products, mateteb or workmanship described or referred to on the front side hereof. 5. TAXES_ PApreseotand future tm= Imposed by my federal, state. local, or foreign autt aft which maybe required to pay or called upon or with refaence to the sale, purchase, transportation, delivery, storage, use or consumption of the Products, materials, and/or workmanship described or referred to on the front side hereof shag be the responsibility of the user aodiar RLgm at Customer. 6. SHIPMENTS. When crating is required by common carrier or by our shipment wiperlenrce, all domestic shipments will racy anedracraft chargaen. our NET pdces, 6.d. , w. expoas6ipmerdswh( ch. must�rtatedafutuoaayanewrar�argaanma •NErpdces. - %. DELIVERY. Upon delivery of the products and/or materials described or referred to on the front aide hereof, F.O.B. carrier, all risk of lass, damage and other incidents of ownership shalt immediately pass to Buyer, but NNe to such products will be retained by Fiber-Tech Engineering, I= asseoudgr for auyackpedbrmanceurAll payment In. RdiisrmeivaL 8, WARRANTY. Fiber -Tech F-ngtneerirg, Inc. will wanart, subject to Paragraph g thersof, that every fabrication to be sold shall be free from defects in material and workmanship under normal use and service for a period of 12 Months from the date ofshtpmentto the Purchaser- This ae mar# willbegmitea, howeverto the fol lowIrw The repair or atFAW- Tech&"alneadrg, Ix.'s option, the replacement of any part of the equipment that, upon axaminallwn, is disclosed, to the satisfaction of Fiber - Tech Engineering, Inc. to have been defective at the time of delivery will be without charge to the Purchaser. Fiber -Tech Enabwzki& Inc.. udll,at its opdcn,.as somas.rmasonabty possible repair or replace the.defedlve part Fiber -Tech Engineering, Inc. must be notified within 30 days of the discovery of a defect and must be given the option to replace or repair the defect. Repairs by there without the consent of Fiber -Tech Enolneerirg, Inc. will nullify the weir" and coats for the same will not be reimbursed by Fiber -Tech Engineering, Inc. No part or material shall be returned to fiber -Tech Engineering . fmn. wfihmdgiehconsent. to =euenh,sba0Fd=r Tsclx Engineering, lao. be liable for ransequsnUalar Incidental damages, including downtime white the equipment is out of commission nor wig the warranty cover removal and raLuslaustI n e- ft. AWhodaed returned pads nr material must be shipped prspaid to Fiber- TcobEpgineerbg, lac.. 8b. WARRANTY EXCLUSIONS: 1. Defects, damage, or deterioration due to normal use, wear and tear, or eyposurq 2. Normal maintenance services; 3. Damage or defects due to misuse, abuse, alteration, negligence, or a - W. nf,',&D amageor defects due torepairof the nn�d ..bysomaene other amFiber -Tech Engineering, Jne. The foregoing warranty and any other warranties included on the front side, or attached hereof ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED, IMPLIED OR STATUTORY (INCLUDING BUT NOT LIMITED TO THE WARRANTY OF MERCHANTABILITY), WHICH OTHER WARRANTIES ARE EXCLUDED MERESY. and of so* ofnarah"natioos. and l iahWlesantbepad cfFibm- TeohEagi_ aN.g,loc. Fiber -Tech Engineering, Inc. neither assumes nor authorizes any person to assume for it any other obligations cc IiabiWy iaoonoettim wghtbesaidpmducts, materials, aoddor wonkma�_ tiT 9. PERMISSIBLE VARIATIONS. Unless otherwise specified and agreed upon, all products, materials, andlor workmanship shall be furnished subject to Fiber -Tech Engineering, Inc: s standard practices, td onesaodvatlatioba,Fibef-Tech. Erring, loc. neservesampdvaegeof shipping onmrageaor underages of weight, length, size and/or quality In accordance with such of Fiber -Tech Engineering, Inc. s standard pract xa as may be applicable to the products, materials, andfor workmanship to be furnished upon AMncs of ibis Offer- WAVER. The waiver by Fiber -Tech Engineering, Inc. of any term, provision, or condition hereof shall not be conelrued to be a waiver of any other term, condition of or provision hereof, nor shall such waiver be deemedawabrerof subsequent bmachofftesamacondilmatpcouldon_ latheeventBuyarshadeftAi , Its obligations under this Agreement, Buyer shall be liable for Fiber -Tech Engineering, Inc.'s cost ofcoilectlam,InabAngreasonable +% fees- 12. ACCEPTANCE. This offer shag expire and terminate at midnight on the thirtieth day after the date shown on the front aide hereof, unless it is sooner revoked by oral or written notice from Fiber -Tech Engineering, lac -or is accepted by the Ruyes.No acceptance shall, bedeemedto hesftacgvaunle it is in, wr3irosigned by a duly authorized representative of Buyer and Is actually received by Fiber -Tech Engineering, Inc. . PERIia1TS.- Buyer is-- =ponssible for obWkdmg mW and alllmd pomtfslaaay instance where F)hea -TnGIV Engineering, Inc. is responsible for any installation or other performance beyond shipping the products, mafedgk aodforworkrnanahip described hewd. 14. CANCELLATION CHARGES. Minimum cancellation charges are 25% of the purchase price of the order but in no case less than $500.00. In the case of cancellation of an order after acknowledgement, the g .., h AM dA amen. After the acknowledgement but prior to the drawing submittal ................................ ............................25% After acknowledgement and drawing submittal .................................................... ............................36% After drawing approval and prbr to material rece ipt ............................ ......... ............................A6% A4erdmwNgappmvalandaecajo OfmmtPAisus ._ ....».......,.,.._........,__..,-.»..... ...».. ».._ .............», »»Sfi94 After fabrication begins ................................................ ............................... .........................86%-95% 15. PATENT INFRINGEMENT. Buyer warrants and guarantees that the specified goods purchased from Fiber -Tech Engineering, Inc. do not infringe any valid patent, trademark, or copyright owned or controlled by any OthescorpnraUm.L=m arperson. andagrees todetead, lndemniilrandboldhanmlesaFWer- T.sohE�fbeedbg, Inc. and its officers and/or employees thereof against any and all liability, loss and expense by reason of any claim, action or litigation arising out of any alleged or actual direct or contributory infringement of any patent, copyrightortradamark ,forsigmor domcstx resullingfromtieuseofsaleofsaidgoodsorbaypadtheraof. Foist 99 I VU97 EXHIBIT 1111 tXSoffoler-Tech FN6INFFFHIG, INC. 611 Rock Springs Road, Escondido, CA 92025 Toll Free: (888) NEED FRP WARRANTY FOR MATERIAL AND WORKMANSHIP FIBER -TECH ENGINEERING, INC. (FTE) warrants that the repair / refining of the FRP Tank inside side wall and bottom (PRODUCT /S), carried out for the City of Newport Beach (BUYER) under P.O. V9247, shall be free from defects in material and workmanship under normal use and service for a period of one (1) year from the date of repair. BUYER's exclusive remedy for breach of said warranty shall be as folio": If, and only if FTE is notified in writing, within 10 calendar days of the date upon which the defect is discovered, or should have been discovered, and FTE upon examination of any such defects shall find the same to be within the terms and covered by any warranty from FTE to buyer, then FTE will, at its option, as soon as reasonably possible, replace or repair any such PRODUCTS material or workmanship without charge to the buyer. FTE reserves the right to have the PRODUCTS returned to our factory for repair or replacement. Authorized returned PRODUCTS or material must be shipped prepaid to FTE. No representative of the corporation may vary any of the forgoing and the purchaser hereby accepts said PRODUCT /S, subject to the terns thereof. WARRANTY EXCLUSIONS: F.T.E.'s. warranty will not cover: A) Defects, damage and /or deterioration due to normal use, wear & tear and/or exposure; B) Normal maintenance services; C) Damage and/or defects due to misuse, abuse, alteration, negligence or accident; D) Damage and /or defects due to repair of the PRODUCT /S by someone other than FTE; E) Any part or component which was manufactured by someone other than FTE; F) Damage and/or deterioration on account of installation of the above Product by someone other than FTE and G) Damage and /or deterioration of the PRODUCTIS if used in a manner for which it was not designed or intended. H) The remainder of the tank structure, man -ways, nozzles, exterior of the tank, etc. Page 2 FURTHERMORE, FTE is not liable for any consequential damages, including downtime to the purchaser while the PRODUCT /S is out of service, nor will the warranty cover removal, reinstallation, or clean -up expenses. The warranty will become null and void if notification is not received in writing within (10) calendar days as stated in the previous paragraph. The purchaser is responsible for the performance of normal and regular maintenance services. THIS WARRANTY IS IN LIEU OF ALL OTHER EXPRESS AND IMPLIED WARRANTIES OF FTE'S INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR IMPLIED WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE. FTE DOES NOT ASSUME, OR AUTHORIZE ANY PERSON TO ASSUME ON ITS BEHALF, ANY OTHER OBLIGATION OR LIABILITY. FIBER -TECH ENGINEERING, INC. Jerold Burke (President) s REV. 2095