HomeMy WebLinkAboutItem 6f. Award Contract for Corporation Yard Fuel Island and Wash Station Rehabilitation (Spec. 2000075-9.01) Item 6f
Department: Public Works
Cost Center: 5005
For Agenda of: 3/19/2024
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Nathan Garcia Nava, Engineer I
SUBJECT: AWARD CONSTRUCTION CONTRACT FOR CORPORATION YARD
FUEL ISLAND AND WASH STATION REHABILITATION,
SPECIFICATION NO. 2000075-9.01
RECOMMENDATION
1. Award a Construction Contract to Quincon, Inc. in the amount of $795,694.62 for the
Corporation Yard Fuel Island and Wash Station Rehabilitation project, Specification
Number 2000075-9.01; and
2. Appropriate $81,203.74 from the Sewer Unreserved Working Capital Fund
(602.0000.32001) to the project account (2000075-9.01); and
3. Appropriate $84,848.98 from the Water Unreserved Working Capital Fund
(601.0000.32001) to the project account (2000075-9.01); and
4. Transfer $15,997.31 from the Whale Rock Undesignated Capital Completed Projects
Fund (705.9501.71501) to the project account (2000075-9.01); and
5. Authorize the City Engineer to approve Contract Change Orders up to the available
project budget; and
6. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, authorizing Use of Water Unreserved Working Capital Fund,
Sewer Unreserved Working Capital Fund and Whale Rock Undesignated Capital
Funds to Support the Corporation Yard Fuel Island and Wash Station Rehabilitation
project, Specification Number 2000075-9.01.”
POLICY CONTEXT
On June 20, 2023, Council authorized the invitation of bids for the Corporation Yard Fuel
Island and Wash Station Rehabilitation project Spec No. 2000075-9.01. As stated in the
report, the project contract must be awarded by Council if the construction bids are higher
than the publicly disclosed funding limit of $700,000.
Page 63 of 91
Item 6f
DISCUSSION
Background
The Corporation Yard Fuel Island and Wash Station Rehabilitation project (Project) seeks
to replace existing metal panels and repair structural components that show deterioration.
The City of San Luis Obispo’s Corporation Yard contains the fuel island and wash stations
that are frequently used by City staff for the refueling and cleaning of City vehicles. Since
its original construction, there have been maintenance projects to maintain the
serviceability and safety of the fuel island and wash stations. Over the course of time,
however, the fuel island metal siding has experienced serious corrosion due to water
intrusion intensified by the proximity of the wash stations. Due to the constant wet
conditions, rust became prevalent, and the various repairs made thus far could not
prevent the rust from reemerging and spreading to the previously repaired areas.
Figure 1: Fuel Island and Wash Station building located at the City Corporation Yard
First Bid Advertisement
On June 20, 2023, after completing the design, Council approved the plans and
specifications and authorized advertisement of the Project. On October 19, 2023, a bid
opening was held where two bids were received. Upon review of the bids, staff determined
that neither bid fully met the project qualifications and staff recommended rejecting all
bids and readvertising the Project to the City Manager.
On November 16, 2023, a City Manager Report (Attachment B) was approved with staff’s
recommendations to reject all bids and readvertise the Project. Staff completed minor
modifications to the required reference projects to increase competitiveness of bids and
readvertised the project.
Second Bid Advertisement
On November 23, 2023, the project went out to readvertise and on December 19, 2023,
a second bid opening was held where one bid (Attachment C) was submitted for
consideration by Quincon, Inc. and was higher than the Publicly Disclosed Funding Limit
shown in the table below.
Page 64 of 91
Item 6f
Table 1: Bid results from December 19, 2023, for the Corp Yard Fuel Island and Wash Station Rehabilitation Project,
Spec No. 2000075-9.01
Publicly Disclosed Funding Limit Quincon, Inc
$700,000 $795,694.62
Although the bid from Quincon, Inc. exceeds the Publicly Disclosed Funding Limit of
$700,000, staff is recommending award of the Agreement (Attachment D) and allocating
an additional $182,050 to the project as discussed in the fiscal impact section below.
Previous Council or Advisory Body Action
In June 2019, Council adopted its 2019-21 Financial Plan approving funding for this
project. In June 2020, Council adopted the FY 2020-21 Budget Supplement that allocated
design funds for this project. On June 20, 2023, Council authorized the invitation of bids
for this project.
Public Engagement
This Capital Project was originally included in the 2019-21 Financial Plan that offered an
opportunity for comments during the Community Forum held on January 28, 2019, at
which time the public was provided an opportunity to review and comment on all capital
projects.
CONCURRENCE
A building permit application was submitted to the Community Development Department’s
Building Division in May 2023. The building permit will be obtained prior to the start of
construction and will be issued to the Contractor followin g the award of a construction
contract. All comments and conditions associated with the building and safety review of
the project have been incorporated into the design of the project.
The Utilities Department has contributed funding based on their usage of the Fuel Island
and concurs with this project.
ENVIRONMENTAL REVIEW
The Community Development Department has issued a Notice of Exemption pursuant to
section 15301 Class 1 (Existing Facilities) and section 15 302 (Replacement or
Reconstruction) of the California Environmental Quality Act Guidelines upon Council’s
approval of the project.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-24
Funding Identified: Yes
Page 65 of 91
Item 6f
Fiscal Analysis:
Funding Sources Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund: Capital Outlay
Fund (2000075-9.01) $299,355 $0 $0 $0
General Fund: Capital Outlay
Fund LRM
(2000075-9.01)
$42,937 $0 $0 $0
General Fund: Major Facilities
Replacement Fund (2000075-
9.01)
$228,154 $0 $0 $0
General Fund: Major Facility
Repl Fund – LRM
(2000075-9.01)
$226,762 $0 $0 $0
State $0 $0 $0 $0
Federal $0 $0 $0 $0
Fees $0 $0 $0 $0
Sewer Unreserved Working
Capital (602.0000.32001) $15,132,424 $81,204 $15,051,220 $0
Water Unreserved Working
Capital (601.0000.32001) $8,300,790 $84,849 $8,215,941 $0
Whale Rock Undesignated
Capital Completed Projects
(705.9501.71501)
$17,842 $15,997 $1,845 $0
Total $24,248,264 $182,050 $23,269,006 $0
Project Account
(2000075-9.01)
Water Unreserved
Working Capital
(601.0000.32001)
Whale Rock
Undesignated
Capital Completed
Projects
(705.9501.71501)
Sewer Unreserved
Working Capital
(602.0000.32001)
404 Fund 601 Fund 705 Fund 602 Fund
Bid Total $642,699 $71,387 $13,398 $68,211 $795,695
Contingency (20%)$130,945 $13,462 $2,600 $12,993 $160,000
Total Construction
Estimate $773,644 $84,849 $15,997 $81,204 $955,694
Construction Support:$14,400 $0 $0 $0 $14,400
Materials Testing:$7,664 $0 $0 $0 $7,664
Printing:$1,500 $0 $0 $0 $1,500
Total Project Cost $797,208 $84,849 $15,997 $81,204 $979,258
Current Account
Balance:$797,208 $8,300,790 $17,842 $15,132,424 $24,230,422
New Requested
Funding $0 $84,849 $15,997 $81,204 $182,050
Project Funding Total $797,208 $84,849 $15,997 $81,204 $979,258
Post Project Balance $0 $8,215,941 $1,845 $15,051,220
Fiscal Impact Summary
City Hall Landing Repair, Spec No. 2000075-1.01
Project Total
Costs
Page 66 of 91
Item 6f
The Project was first identified in the 2019-21 Financial Plan, where it was originally two
separate projects called “Corp Yard – Fuel Island Coating and Dispensers” and “Corp
Yard Fuel Island Siding”. There was an additional $14,750 set aside in the 2020 -21
Budget supplement for design services that was expended during the initial design phase,
leaving a remaining balance of $146.76 in the project account (2091632). The 2021 -23
Financial Plan combined both projects into a single project titled “Corporation Yard Fuel
Island and Wash Station Rehabilitation” and provided construction funding in the amount
of $300,000. There was an additional $250,000 allocated to the project in the 2023-2024
fiscal year from the 2023-2025 Financial Plan. The previous Council action to approve
the advertisement of the project also appropriated $300,000 from the Capital Projects
Reserve Fund balance to fund the construction efforts. The Project account has a current
balance of $797,208 for construction costs.
To fund the total construction cost of the project, staff reviewed fuel use data and created
a percentage breakdown of the shared cost between departments and funds which is as
follows: Sewer 8%, Water 11% (8% coming from the Water Unreserved fund and 3% from
Whale Rock fund), and General Fund 81%. From those findings, staff is recommending
an allocation of $81,203.74 from the Sewer Unreserved Working Capital fund, $84,848.98
from the Water Unreserved Working Capital fund and $15,997.31 from the Whale Rock
Undesignated Capital account.
The Sewer Unreserved Working Capital fund has a current available balance of
$15,132,424 as the date of this report. If the budget allocation is approved, there will be
a remaining balance of $15,051,220 for future use on City projects. The Water
Unreserved Working Capital fund has a current available balance of $8,300,790. If the
budget allocation is approved, there will be a remaining balance of $8,215,941 in the
account. The Whale Rock Undesignated Capital (Completed Projects) has a current
available balance of $17,842.23. If the budget transfer is approved, there will be a
remaining balance of $1,844.92 in the account.
ALTERNATIVES
1. Deny the award of the Construction Contract. Council could choose to reject the
award of the construction contract to Quincon, Inc . Staff does not recommend this
option as the project has been delayed and repairs are needed in order to prevent the
further deterioration of the siding and to maintain the facility functioning for City use.
2. Deny the use of Unreserved Working Capital Funds. Staff does not recommend
this option because funding is required from all users of the facility and after review of
fuel usage data staff have verified the proportionate funding share each department
would commit to the Project.
ATTACHMENTS
A - Resolution authorizing use of W ater Unreserved W orking Capital Funds, Sewer
Unreserved W orking Capital Funds, and Whale Rock Undesignated Capital Funds to
support the Corporation Yard Fuel Island and Wash Station Rehabilitation,
Page 67 of 91
Item 6f
Specification Number 2000075-9.01
B - CMR Corporation Yard Fuel Island and Wash Station Rehabilitation Project, Spec No.
2000075-9.01
C - 2000075-9.01 Bid Results 12.19.23 – Corp Yard Fuel Island and Wash Station
Rehabilitation
D - Corp Yard Fuel Island Siding – Agreement
Page 68 of 91
R ______
RESOLUTION NO. _____ (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING USE OF WATER UNRESERVED
WORKING CAPITAL FUNDS, SEWER UNRESERVED WORKING
CAPITAL FUNDS, AND WHALE ROCK UNDESIGNATED CAPITAL
FUNDS TO SUPPORT THE CORPORATION YARD FUEL ISLAND AND
WASH STATION REHABILITATION, SPECIFICATION NUMBER
2000075-9.01
WHEREAS, despite the several maintenance projects on the fuel island over the
years, the metal siding has experienced serious corrosion due to water intrusion near the
wash station; and
WHEREAS, on June 20, 2023, City Council authorized the invitation of bids for the
Corporation Yard Fuel Island and Wash Station Rehabilitation (Project) and approved an
additional $300,000 from the Capital Projects Reserve Fund to the Corporation Yard Fuel
Island and Wash Station Rehabilitation project account 2000075 -9.01; and
WHEREAS, an initial bid opening was held on October 19th, 2023, where two bids
were submitted for consideration; and
WHEREAS, on November 16, 2023, a City Manager Report was approved with
staff’s recommendations to reject all bids and readvertise the Project due to
nonresponsive bids; and
WHEREAS, the project went out to readvertise a second time on November 23,
2023; and
WHEREAS, on December 19, 2023, a second bid opening was held where one
bid was submitted for consideration by Quincon, Inc. that was higher than the Publicly
Disclosed Funding Limit; and
WHEREAS, to provide funding to support the total construction contract for the
Project based on a proportionate share of use of the facility by enterprise activities, staff is
recommending City Council approve the use of Water and Sewer Unreserved Working
Capital Funds and Whale Rock Undesignated Capital Funds to support the project; and
WHEREAS, the Whale Rock Undesignated Capital Fund has an available balance
of $17,842.23 and will contribute $15,997.31 based on historical fuel usage data. There
will be a remaining balance of $1,844.92 in the account for future use ; and
Page 69 of 91
Resolution No. _____ (2024 Series) Page 2
R ______
WHEREAS, the Water Unreserved Working Capital Fund has an available balance
of $8,300,790 and will contribute $84,848.98 based on historical fuel usage data. There
will be a remaining balance of $8,215,941 for use on future projects; and
WHEREAS, the Sewer Unreserved Working Capital Fund has an available
balance of $15,132,424 and will contribute $81,203.74 based on historical fuel usage
data. There will be a remaining balance of $15,051,220 for use on future projects.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The City Council authorizes staff to transfer $84,848.98 from the
Water Unreserved Working Capital Fund, to transfer $81,203.74 from the Sewer
Unreserved Working Capital Fund, and to transfer $15,997.31 from the Whale Rock
Undesignated Capital Fund to the Corporation Yard Fuel Island and Wash Station
Rehabilitation project account 2000075-9.01.
Upon motion of _______________________, seconded by
_______________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2024.
___________________________
Mayor Erica A. Stewart
ATTEST:
__________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
___________________________
J. Christine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington, City Clerk
Page 70 of 91
City of San Luis Obispo, City Manager Report
Resolution Authorizing use of Unreserved Working Capital Fund for Spec Number 2000075-9.01
Final City Manager Approval Approver Name Date Approved
ACM Community Services WM 11/16/23
Reviewer Routing List Reviewer Name Date Reviewed
Finance EJ 11/16/23
City Engineer SM for BN 11/8/2023
City Attorney SMS 11/13/23
Capital Improvements Program
Administrative Manager
SM for BN 11/8/2023
Department Analyst BP 11/9/2023
November 6, 2023
FROM: Matt Horn, Director of Public Works MH 11/10/2023
PREPARED BY: Nathan Garcia Nava, Engineer I
SUBJECT: Re-advertise the Corporation Yard Fuel Island and Wash Station
Rehabilitation Project, Specification No. 2000075-9.01
RECOMMENDATION
Reject all bids and authorize staff to re-advertise the Corporation Yard Fuel Island and Wash
Station Rehabilitation Project (Specification No. 2000075-9.01) for bids.
DISCUSSION
Background
On June 20th, 2023, staff went to City Council to authorize the Corporation Yard Fuel Island and
Wash Station Rehabilitation (Project), Specification No. 2000075-9.01 project for bids. The same
action also authorized the City Manager to award the contract if the lowest bid was within the
Publicly Disclosed Funding Limit of $700,000.
On October 19th, 2023, a bid opening was held where two bids (Attachment A) were received and
opened with the apparent lowest bidder being Quincon, Inc. (Quincon) with a bid proposal of
$769,915.56. Both bids submitted were higher than the Publicly Disclosed Funding Limit as shown
in the table below.
Table 1: Bid results from October 19, 2023, for the Corp Yard Fuel Island and Wash Station Rehabilitation Project, Spec No.
2000075-9.01
Publicly Disclosed
Funding Limit
Quincon, Inc GEMS Environmental
Management Services, Inc.
$700,000 $769,915.56 $986,035.40
Page 71 of 91
Authorization to Re-advertise Corp Yard Fuel Island and Wash Station Rehabilitation Page 2
Quincon was the lowest bidder, but their bid was determined by staff to be non-responsive as it
did not meet the project qualifications required in the Notice of Bidders Section of the Project
Special Provisions. Specifically, Quincon did not provide the required reference projects per the
requirements below:
“Two of the referenced projects must be for commercial or industrial building metal
construction or repair”
“One of the referenced projects must be for a fuel tank recoating of similar size”
Quincon was informed of the City’s determination that the bid was non-responsive and was given
five days to respond with information as to why their bid should be considered responsive
(Attachment B). Quincon responded by providing additional clarification on their submitted
reference projects and provided a new reference to meet the requirements of the project
(Attachment C). City staff reviewed the submitted documentation and determined that Quincon’s
bid was non-responsive as no new references can be submitted after the bid opening.
The second lowest bidder was GEMS Environmental Management Services, Inc. After reviewing
their bid package, staff found one of the referenced projects provided does not meet the
requirements of the project Special Provisions. One of the listed reference projects was completed
in 2016 which does not meet the requirement that all reference projects must have been completed
within the last five years from the project’s bid opening date.
Staff is recommending rejecting all bids and re-advertising the Project. Staff will make minor
modifications to the required reference projects prior to the re-advertisement of the Project. The
modifications will not compromise the standard of qualification for the bidding contractors or
modify the project as approved by Council but will allow for more competitive bidding of all
interested contractors.
FISCAL IMPACT
There is no direct fiscal impact of the recommended action. If the re-advertised project bid results
are higher than the publicly disclosed funding limit, staff will return to Council with a funding
recommendation to award the Project.
ALTERNATIVES
Deny project readvertisement. The City Manager may choose to deny approval to re-advertise the
Project, but staff does not recommend that option as the fuel island and wash station are in need
of repair to prevent further deterioration.
ATTACHMENTS
A. 2000075-9.01 Bid Results – Corp Yard Fuel Island and Wash Station Rehabilitation
B. 2000075-9.01 Bid Responsiveness Letter – Quincon, Inc.
C. 2000075-9.01 Bid Responsiveness Letter – Quincon, Inc. Response
Page 72 of 91
Authorization to Re-advertise Corp Yard Fuel Island and Wash Station Rehabilitation Page 3
https://slocitycloud.sharepoint.com/sites/SLOHub/Administration/Shared Documents/City Manager Reports/Public Works/2023/CIP
Engineering/2000075-9.01 Corp Yard Fuel Island and Wash Station Rehabilitation
Page 73 of 91
Page 74 of 91
Bid Opening: 12/19/2023
Item #Item Description Unit of Measure Estimated Quanity Item price Total
1 DEMOLITION LS 1 ---$50,028.72
2 REMOVAL OF EXISITING CONCRETE RAISED
CURB LF 40 $207.11 $8,284.40
3 STRUCTURAL REPAIRS LS 1 ---$149,787.24
4 PAINTING OF FUEL ISLAND STRUCTURE,
BOLLARDS AND CURB
LS 1 ---$170,503.93
5
COATING OF TANKS EXTERIOR SURFACES AND
SADDLES,FILL PIPING,CONTAINMENT BOXES,
AND DISPENSER BOXES
LS 1 ---$86,198.73
6 NEW WALL PANELS LS 1 ---$70,157.33
7 DOOR REPLACEMENT EA 2 $9,809.31 $19,618.62
8 REPLACEMENT OF EXISTING DOWNSPOUT EA 2 $213.51 $427.02
9 INSTALLATION OF THE BIRD NETTING FOR
ENTIRE STRUCTURE LS 1 ---$17,839.77
10 INSTALLATION OF GALVANIZED STEEL LOUVER EA 1 ---$1,421.37
11 NEW 6" CURB LF 150 $293.60 $44,040.00
12 NEW RMI ROOFING MEMBRANE LS 1 ---$152,827.64
13 REMOVAL AND DISPOSAL OF EXISTING SIGNAGE
AND INSTALLATION OF NEW SIGNAGE LS 1 ---$1,988.70
14 TEMPORARY FUEL TANK AND PUMP WEEK 1 ---$21,961.15
15 GUTTER ALLOWANCE LF 50 $12.20 $610.00
$795,694.62
Corporation Yard Fuel Island and Wash Station Rehabilitation, SPECIFICATION NO. 2000075-9.01
Total Bid Amount
** Total bid amount is based on item price. Per section 2-1.33A, in the case of arithmetic discrepancy between item prices and total
prices, items prices prevail over total prices.
Quincon, Inc.
Page 75 of 91
Page 76 of 91
AGREEMENT
THIS AGREEMENT, made on _____________________, by and between the City of
San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County,
California (hereinafter called the Owner) and QUINCON, INC. (hereinafter called the
Contractor).
WITNESSETH:
That the Owner and the Contractor for the consideration stated herein agree as follows:
ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be
performed, shall provide and furnish all of the labor, materials, necessary tools,
expendable equipment, and all utility and transportation services required to complete all
the work of construction of
CORPORATION YARD FUEL ISLAND AND WASH STATION REHABILITATION,
SPECIFICATION NO. 2000075-9.01
in strict compliance with the plans and specifications therefor, including any and all
Addenda, adopted by the Owner, in strict compliance with the Contract Documents
hereinafter enumerated.
It is agreed that said labor, materials, tools, equipment, and services shall be furnished and
said work performed and completed under the direction and supervision and subject to the
approval of the Owner or its authorized representatives.
ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration
for the faithful performance of this Contract, subject to any additions or deductions as
provided in the Contract Documents, the contract prices as follows:
Item Item
Description
Unit of
Measure
Estimated
Quantity
Item Price
(in figures)
Total
(in figures)
1 DEMOLITION LS 1 ---- $50,028.72
2 REMOVAL OF EXISITING
CONCRETE RAISED CURB LF 40 $207.11 $8,284.40
3 STRUCTURAL REPAIRS LS 1 ---- $149,787.24
4
PAINTING OF FUEL ISLAND
STRUCTURE, BOLLARDS,
AND CURB
LS 1 ---- $170,503.93
5
COATING OF TANKS
EXTERIOR SURFACES AND
SADDLES, FILL PIPING,
CONTAINMENT BOXES, AND
DISPENSER BOXES
LS 1 ---- $86,198.73
6 NEW WALL PANELS LS 1 ---- $70,157.33
DocuSign Envelope ID: 76921625-19F5-4CF0-8494-CC15D38B024E
Page 77 of 91
7 DOOR REPLACEMENT EA 2 $9,809.31 $19,618.62
8 REPLACEMENT OF EXISTING
DOWNSPOUT EA 2 $213.51 $427.02
9
INSTALLATION OF THE BIRD
NETTING FOR ENTIRE
STRUCTURE
LS 1 ---- $17,839.77
10 INSTALLATION OF
GALVANIZED STEEL LOUVER EA 1 ---- $1,421.37
11 NEW 6" CURB LF 150 $293.60 $44,040.00
12 NEW RMI ROOFING
MEMBRANE LS 1 ---- $152,827.64
13
REMOVAL AND DISPOSAL OF
EXISTING SIGNAGE AND
INSTALLATION OF NEW
SIGNAGE
LS 1 ---- $1,988.70
14 TEMPORARY FUEL TANK AND
PUMP WEEK 1 ---- $21,961.15
15 GUTTER ALLOWANCE LF 50 $12.20 $610.00
BID TOTAL: $795,694.62
Payments are to be made to the Contractor in compliance with and subject to the provisions
embodied in the documents made a part of this Contract.
Should any dispute arise respecting the true value of any work omitted, or of any extra work
which the Contractor may be required to do, or respecting the size of any payment to the
Contractor, during the performance of this Contract, said dispute shall be decided by the
Owner and its decision shall be final, and conclusive.
ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the
following documents, all of which are as fully a part thereof as if herein set out in full, and if
not attached, as if hereto attached:
1. Notice to Bidders and Information for Bidders
2. Standard Specifications and Engineering Standards
3. Special Provisions, any Addenda, Plans and Contract Change Orders
4. Caltrans Standard Specifications and Standard Plans 2015
5. Accepted Bid and Bid Bond
6. List of Subcontractors
7. Public Contract Code Sections 10285.1 Statement
8. Public Contract Code Section 10162 Questionnaire
9. Public Contract Code Section 10232 Statement
10. Labor Code Section 1725.5 Statements
11. Bidder Acknowledgements
12. Qualifications
13. Non-collusion Declaration
14. Agreement and Bonds
15. Insurance Requirements and Forms
DocuSign Envelope ID: 76921625-19F5-4CF0-8494-CC15D38B024E
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ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal
counsel approved by City, and hold harmless City, its officers, officials, employees and
volunteers from and against all liability, loss, damage, expense, cost (including without
limitation reasonable legal counsel fees, expert fees and all other costs and fees of
litigation) of every nature arising out of or in connection with the Contractor’s negligence,
recklessness or willful misconduct in the performance of work hereunder or its failure to
comply with any of its obligations contained in this Agreement, except such loss or damage
which is caused by the sole or active negligence or willful misconduct of the City. Should
conflict of interest principles preclude a single legal counsel from representing both the City
and the Contractor, or should the City otherwise find the Contractor’s legal counsel
unacceptable, then the Contractor shall reimburse the City its costs of defense, including
without limitation reasonable legal counsel fees, expert fees and all other costs and fees of
litigation. The Contractor shall promptly pay any final judgment rendered against the City
(and its officers, officials, employees and volunteers) with respect to claims determined by
a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful
performance. It is expressly understood and agreed that the foregoing provisions are
intended to be as broad and inclusive as is permitted by the law of the State of California
and will survive termination of this Agreement.
The Contractor obligations under this section apply regardless of whether such claim,
charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment,
civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee.
However, without affecting the rights of the City under any provision of this agreement, the
Contractor shall not be required to indemnify and hold harmless the City for liability
attributable to the active negligence of City, provided such active negligence is determined
by agreement between the parties or by the findings of a court of competent jurisdiction. In
instances where the City is shown to have been actively negligent and where the City’s
active negligence accounts for only a percentage of the liability involved, the obligation of
the Contractor will be for that entire portion or percentage of liability not attributable to the
active negligence of the City.
ARTICLE V. It is further expressly agreed by and between the parties hereto that should
there be any conflict between the terms of this instrument and the bid of said Contractor,
then this instrument shall control and nothing herein shall be considered as an acceptance
of the said terms of said bid conflicting herewith.
IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this
year and date first above written.
DocuSign Envelope ID: 76921625-19F5-4CF0-8494-CC15D38B024E
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ATTEST:
_______________________________
Teresa Purrington, City Clerk
CITY OF SAN LUIS OBISPO
A Municipal Corporation
___________________________________
Erica A. Stewart, Mayor
APPROVED AS TO FORM CONTRACTOR:
QUINCON, INC.
________________________________
J. Christine Dietrick
___________________________________
Jose Quintana
City Attorney
Chief Executive Officer & Secretary
DocuSign Envelope ID: 76921625-19F5-4CF0-8494-CC15D38B024E
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