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HomeMy WebLinkAbout07 - CC-7 - Street Striping & Thermosplastic Marking - 4/5/2016CITY COUNCIL AGENDA REPORT MEETING DATE: April 5, 2016 ITEM NUMBER: CC -7 SUBJECT: STREET STRIPING & THERMOPLASTIC MARKINGS DATE: MARCH 24, 2016 FROM: PUBLIC SERVICES DEPARTMENT - MAINTENANCE SERVICES DIVISION PRESENTATION BY: ERNESTO MUNOZ, PUBLIC SERVICES DIRECTOR FOR FURTHER INFORMATION CONTACT: BRUCE HARTLEY (714) 754-5123 BRUCE LINDEMANN (714) 327-7470 RECOMMENDATION 1. Approve and authorize the Chief Executive Officer to execute a three (3) year contract for the performance of street striping and installation of thermoplastic roadway markings to Superior Pavement Markings, Inc., 5312 Cypress St., Cypress CA 90630, per formal bid item #16-29, in an amount not to exceed $150,000 annually. Based upon a competitive bidding process and analysis provided by the Public Services Department. 2. Authorize the Chief Executive Officer to execute the Professional Services Agreement for the contract. 3. Authorize the Chief Executive Officer to renew the contract for two (2) additional one (1) year terms, upon mutual agreement of both parties. BACKGROUND The City of Costa Mesa has over 1,500,000 linear feet of painted roadway traffic lines. Since 2009, the Public Services Department has used a hybrid system of in-house staff and outside contractors to paint residential and arterial roadway striping and markings. The contract for roadway striping and markings has expired. In order to meet the needs of the Department, the work needed to be re -bid and a new contract established. On February 11, 2016 the Purchasing Division advertised an "Invitation for Bid" for Street Striping & Thermoplastic Markings. As required by the City of Costa Mesa Municipal Code the "Notice Inviting Bids" was sent to qualified vendors, published in the Daily Pilot Newspaper and posted on the City's website. In response to the IFB, five (5) vendors attended the mandatory pre-bid conference: • J & S Striping • Orange County Striping • PCI • Sterndahl Enterprises • Superior Pavement Markings, Inc. 1 ANALYSIS The IFB allowed bidders to provide pricing information based on a rate per linear foot for a variety of striping and thermoplastic configurations and sizes. In response to the City's IFB, only one qualified, responsible and responsive bid was received. It was determined that Superior Pavement Markings, Inc. met all requirements of the bid. Staff evaluated the bid response, reviewed references and confirmed the required insurance documents. The bid received for roadway striping was $144,209.90. The bid for thermoplastic markings was for $24,000. The bid totals are comparable to the Engineer's estimate and within the amount budgeted for the performance of the requested services. The bid tabulation is provided in the Bidder's response. (Attachment 1) When contacted by City staff, the non -responding companies sited either not having some of the City -required licenses, or the knowledge that one of the companies at the mandatory pre-bid meeting has a history of significantly lower pricing as reason they did not submit a bid. FISCAL REVIEW City Council allocated funding for this contract through the adoption of the FY15-16 Public Services Department operations budget. ALTERNATIVES CONSIDERED The Council could reject the bid and direct staff to re -advertise the work. However, with the five most prominent local companies already provided an opportunity to bid, it is not likely new companies with lower pricing would be obtained. LEGAL REVIEW The City Attorney's Office has reviewed and approved of the terms of the contract and the Professional Services Agreement with Superior Pavement Markings Incorporated (Attachment 2). 1401 L1 10AW4 [0] 0 Properly maintained pavement markings improve nighttime visibility of roadways and reduce the risk of roadway accidents. The City pro -actively repaints roadway lane markings on a biannual basis to ensure that they are clearly visible at night, as directed by the Federal Highway Administration and regulated by the Manual on Uniform Traffic Control Devices. The City's contract for striping services expired. The needed work was advertised through the formal bid process, with only Superior Pavement Markings, Inc., submitting a bid. The pricing is very competitive, is within the approved budget, and the company has performed very well for the City in the past. It is therefore recommended that the Council award the proposed three (3) year contract with two (2) optional one (1) year renewals as a cost effective method to ensure that the traffic lines on roadways throughout the City are maintained on a regular schedule. E ERNESTO MUNOZ BRUCE HARTLEY Public Services Director Maintenance Services Manager Attachments: 1. Bid Submittal — Superior Pavement Markings, Inc. 2. Professional Services Aareement ATTACHMENT #1 'Opy # 1 INVITATION FOR BID FOR STREET STRIPING & THERMOPLASTIC MARKINGS IFB No. 16-29 PUBLIC SERVICES DEPARTMENT CITY OF COSTA MESA Released on February 11, 2016 The referenced -document has been modified as per the attached Addendum No. I Please sign this Addendum -where designated and return the executed copy with submission of your bid. This addendum is hereby made part of the referenced bid as through fully set forth therein. Any questions regarding this addendum should be addressed to Stephanie Urueta, email stephagicuructa 41,costamesaca.uov .1 2 3. SCOPE OF WORK LICENSE REQUIREMENT Prime Contractor or authorized sub -contractor must possess:a valid Class A or C3:1 & C32 license prior to award of contract. In accordance with the California Public Contract Code ?U 103.5, if and when federal funds are involved in local agency contracts, no bid shall be invalidated by the failure of the bidder to be licensed in California at the time of bid opening. However. at the time of award, the selected contractor shall be properly licensed in accordance with the laws of the State. 4. BIDDER'S MINIMUM REQUIREMENTS i Interested and qualified Bidders that can demonstrate their ability to successfully provide the required services outlined in Section 3 - Scope of Work. of this IFB are invited. to ' submit a bid. provided they meet: the following requirements: If these rectuirements are not met, the laid may not receive further consideration, as determined in the sale discretion of the City. 43 The Bidder or authorized sub -contractor roust show proof of possession of valid Class A or G3 I /C'32 License prier to award of contract. Replace Appendix D Bid Sheet with attached revised Appendix D Bid Sheet, i r r 5 3 REVISED, Appendix D SCHEDULE OF UNIT PRICES The undersigned declares that he/she has carefully examined the specifications, and, read the accompanying instruction to bidders, and herby bids to perform all the work- required to complete the project in accordance with the' speci-fications, and special provisions for the unit price(s) or lump sum(s) set forth in the following schedule: CITY RESERVES THE RIGHT TO INCREASE, DECREASE OR DELETE BID ITEMS WITHOUT SUBJECTION TO THE RESTRICTIONS OF SECTION 3-2 OF THE "GREEN BOOK". ,ROUTINE MAINTENANCE — STRIPING WATER-BASED PAINT) Bid Item Estimated Unit Unit Amount Quantity Price Install 4" Center 171,711 LF Line Per Cal Trans $.06 $10,302,66 Detail land Solid 4" CenterLine Install 4" Lane Line 875,000 LF Per Cal Trans Detail $.03 $26,250.00 8 or Cal Trans Detail I I Install 4" Double 188,753 Yellow Lane Line LF $.15 $28.312.95 w/Black Center (4"- 3"-4") Per Cal Trans Detail 22 Install 4" Two Way 155,006 LF Turn Lane Line Per $.13 $20,150.78 Cal Trans Detail 31, Each Side. Install 8" White 135,899 LF Turn Lane Line Per $.Is $20,384.85 Cal Trans Detail 38 A J Install 4" Edge Line . 23,676 LF 1$.08 Yet low and White $1,894.08 Per Cal Trans Detail 27 B Install 6" Wh to 296,839 LF Bike Lane Line Per $_12 $3516,20.68 Cal Trans Detail 39 &.19A Install Lane Drop 8,626 LF Per Cal Trans Detai 1 $.15 $1.293.90 37B I ROADWAY STRIPING — TOTAL I $144,209,90 1 0 4 ROUTINE MAINTENANCE —THERMOPLASTIC MARKINGS Bid item Estimated Unit [Int Amount aanti Price Instal} lam" 1�'hite 21500 LF and $1.80 $4,SOO.tlO Limit Lines, Instal} 12" Yellow Z,�Ofl LF Crosswalks and $-} .8fl $4500,00Limit Lints Install Stop 2 l��assage�.l.,etrers Each $18000 $4,500.00OnlyInstall Pavement 2Ufl Letters Each Letters 8: and/orNumbers, (8' High) Numbers $45.00 $9,OUO.Of) Keep Clear, 'Yield, Slog Dip. 25, 3f1, �0, i�3P}-1,'�%'ait Here, Curve, No Exit.. , Ahead, Bump, PedXing. FWY North. }�'t�v"� South. SlowSiTna! Install Pavement 2S Each Arrows Per head �b0.fl0 � } ,�Ofl.Ot} ROADWAY THERMOPLASTIC MARKINGS — TOTAL 24.000.00 NOTE: The accuracy of estimated quantities w, shown is not guaranteed: the Bidder shall snake hisilter own estimate. If the unit price and the total amount are different, the unit price will control the bid. Payment shall be based on actual work tune and/or actual quantities used. TO THE CITE' OF COSTA IYIESA: The Undersigned ned hereby offers and shall furnish the material, labor, special equipment and permits or service in compliance with all terms, scope of work, conditions, specifications, and amendments in the Invitation for 'Bid which is incorporated by reference as if fitly set forth herein. All material is guaranteed to be as specified, all work to be completed in a workmanlike manner according to standard practices, according to terms and conditions cite the attached hereon and made a part thereof. A Purchase Order will not be issued until the insurance certificate is approved by Risk Management. For clarification of this offer, contact: Superior Pavement Markings int; Nance: Darren V ltz Company Name 5312 Cypress Strut Title: Corporate Secretary Address Cypress Ca 90630 Phone: (714) 995-9100 City State Zip} ax: (714) 995-9400 0 0 Signature of Person Authorized to Sign Darren VeltzE-mail: Darren@Supe(iorpavementmarkings.com Tinter Name Corporate Secreta Title AM other provisions of the invitation t f this bird shall retrain in their entirety. Vendors kerehi' acknowledge reeeilit and understanding of the above Addendunt. tJ C—o-ntptithis Addendum vidt t25116 Signature Date Darren Veltz Corporate Secretary Typed Name and Title your bid. Superior Pavement Markings Inc Company Name 5312 Cypress Street Address Cypress Ca 90630 City State Zip REQLJE'ST FOR BID STREET STRIPING & THERMOPLASTIC MARKINGS VENDOR APPLICATION FORM TYPE OIC APPLICANT: 7, NEW It CURRENT VENDOR Legal. Contraotual Name of Corporation: Superior Pavement Markings Inc Contact Person for Agreement: _,. Darren Veltz Corporate Mailing Address: 6312 Cypress Street City, State and Zip Code: Cypress Ca 90830 E -Mail Address: Darren@Superiorpavementmarkings.com Phone: J714) 995-9100 Fax: (714) 995-9400 Contact :Person .For Bids* Darren Veltz Title: Corporate Secretary E -Mail Address- Darren@Supedorpavementmarkings.com Business Telephone: (714) 995-9100 Business Fax: (714) 995-9400 Is your business: (check one) R NON PROFIT CORPORATION Nf FOR PROFIT CORPORATION Is y« car business: (check one) ,Nf CORPORATION LIMf1'ED LIABILITY PARTNERSHIP El INDIVIDUAL EJ SOLE, PROPRIETORSHIP El PARTNERSHIP [] UNINCORPORATED ASSN CIATIOIN I Names & Titles of Corporate Board Members (Also list Names & Titles of persons with w.ritten authorizationtresolution to sign contracts) Names Title John Lucas President Darren Veltz Corporate Secretary Federal Tax Identification Number: 20-45182 1 Phone (714) 995-9100 (714) 995-9100 City of Costa Masa Business License Number: 38541 (If none, you must obtain a Costa Mesa Business License upon award of contract.) City of Costa Mesa Business License Expiration Date: 3/31/2016 to --,,-E'X.P-ART-B.CO.',MMUINICA-T-IONS-CER-T-IFICA-T-10,N-- Please indicate by signing below one ofthe following two statements. Only sign one statement. I certify that Bidder and Bidder's representatives have not had .,any communication with a City Councilmember concerning the CONTRACTOR Services IFB at any time after February 11, 2016 Name Darren Veltz Date 2/25/2016 M I certify that Bidder or Bidder's representatives have communicated after February 11, 2016 with a City Councilmember concerning the Street Striping &Thermoplastic Marking Services. A copy of all such communications is attached to this form for public distribution. Name Date SEE ADDENDUM # I BID SHEET I #16-29 ROADWAY STRIPING AND ROADWAY MARKINGS SCHEDULE OF UNIT PRICES The undersigned declares that he/she has carefully examined the specifications, and read the accompanying instruction to bidders, and herby bids to perform all the work required to oomplete the project in accordance with the specifications and special prov inions for the unit price(s) or lump sum(s) set forth in the following schedule: CITY RE ,SE.RVES,I,HE RIGHT To IN ID ITEM r tJ INCREASE., DECREASE OR DELETE B S W f'HO T SUBJECTION TO THE RESTRICTIONS OF SECTION 3-2 OF THE "GREEN BOOK", ROUTINEAMINTENANCE -STRIPING (WATER-BASEDPAINT) BID ITEM ESTIMATED UNIT UNIT A14OUNT QUANTITY PRICE I Install 4' Center Line Per- Cal Trans 171,711 LF Detail I and Solid 4" Center Ulne 12 Install 4" Lane Line Pei- Cal Trans 875,000 _LF Detail 8 or Cal Trans Detail I I 3 Install 4" Double YeltowLane Line 188,753 LF with Black Center (4"-3"4'1) Per Cal Trans Detail 22 4 Install 4" Two Way Left Turn I,= 155,006 LF Per Cal Trans Detai 131 j 5 Install 811 WhiteTurn Lane .Line Per 135,899 LF Cal Trans Detail 2 Install 4" Edge Line Yollow and iVhite 23,676 LF Per Cal Trans Dotail 8 7 Install 6" White Bike. Lane l7ine Per 296,839 1 LF Cal Trans Detail 39 & 39A 8 Install 8" I.ane Drop Per Cal Trans 8,626 LF Detail TOTAL OF ROADWAY STRVING �BlDl $ ITEC . ........ . . .. ..... ....... .... SEE ADDENDUM # I ROUT INE, MAINTENANC E -=THERM -OP -LAS -TIC -MARKING&.---,-..--.-.-,-----.--.---.--.-,.,-- T ESTIMATED UNIT UNIT AMOUNT I -ff M-- "--Bl6-FT—EM— QUANTITY PRICE Install 1Z'White Crosswalks and Limit 25 Lines 2 Install 12" Yellow Crosswalks and Limit 25 Lines 3 Install Stops Message 25 4 Install Pavement Legend Letters and 200 numbers: (8' High} Keep Clear, Yield, Slow Dip, 25, 30 40, MPH, Wait Here, Curve, No Exit, Ahead Bump, Ped Xing, FWY North, FWY South, Slow, Signal 5 Install Pavement Arrows 25 Install School Messages 25 TOTAL OF ROADWAY STRIPING BID $ ITEMS NOTE- The accuracy of estimated quantities as shown is not guaranteed; the Bidder shall mak-ohis/her own estimate, lithe unit priceand the total amount are diffetvnt, Vic unit price will control the bid. Payment shall be based on actual work done and/or actual quantities used. TO THE Crff OF COSTA ME SA: The Undersigned hereby offers and shall furnish the material, labor, special equipment and permits or service in compliance with all terms, scope of work, conditions,specifications, and amendments in the Invitation for Bid which is incorporated by reference as if fully sot forth herein, All material is guaranteed to be as specified, all work to be completed in a workmanlike manner according to standard 'practices, according to terms and conditions on the attached hemp and made a part thereof. A :Purchase Order will not be issued until the in-sarance certificate is approved by Risk Nfanagement. For clarification of this offer, contact: Name:— Company Name Tide: �ddress Phone: Cita state Zip Fax: Signaturc of Person Authorimd to Sign F,ivall: Printed Name SCHL, RULE OF UNff PRICES The undersigned declares that helshe has carefully examined the specifications, and read the acco3npa€wing instruction to bidders, and herby bids to perform all the work rewired to complete the project in accordance witli the specifications and special provisions for the unit price(s) or lump sum(s) set forth in the following schedule: CITY RESERVES ME RIGHT TO INCREASE, DECREASE OR DELETE BID ITEMS NN71THO[ T SUBJECTION TO THE RESTRICTIONS OF SECTION 3-2 OFTHE "OREE'NBOOK". NOTE: The accuracy of estimated quantities as shown is not guaranteed; the Bidder shall make his/her own estimate. If the unit price and the total amount are different, the unit price will control the bid. Payment shall be based on actual work clone and/or actual quantities used, TO THE CITY OF COSTA ME; SA: The Undersigned Hereby offers and shall furnish the inaterial, labor, special equipment and permits or service in compliance with all terms, scope of work, conditions, specifications, and amendments in the Invitation for laid which is incorporated by reference as if fully set forth herein. All material is guaranteed to be as specified, all work to be completed in a workmanlike inanner according it) standard practices, according to terms and conditions on the attached hereon and made a part thereof. A Purchase Order will not be issued until the insurance certificate is approved by Risk Management. For clarification of this offer, contact. Superior Pavement Markings Inc Com anv Name Com Street Address Cypress Ca 90630 City estate Zile - Si`aature, of Per on Authorized to Sign rren Ve1iz _., Print Nagle 'Print Secretary Title ..._. ..._..___._._.._ Name. Darren Veltz Title: Corporate Secretary phone: (714) 995-9100 Fax: (714) 995-9400 l -mail: Darren@Superiorpavementmarkings.com -- DISQUALIFICATION QUESTIONNAIRE The Contractor shall complete the fallowing questionnaire: Has the t ontraztor; any ofter of the Contractor, or any employee of the Contractor who has proprietary interest in the Contractor, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or safety regulation? Yes No If the answer is yes, explain the circumstances in the following space below. 1�5- Pavement Markings To whom it may concern. Re- The City of Costa Mesa IFB#1 6-29 Roadway Striping and Roadway Markings. I a o . We are pleased to offer our company's proposal for the restri pin g and rn I ainte nonce c c f the cxistin g Roadway Striping and Roadway Ntfarl6ngs for the City of Costa NIL-sa utilizing water-based paint for the Striping and thermoplastic material for the markings. The prices contained in this quote are good for a period of one year from the date of the proposal. As with all projects located within Orange County, this project will be managed out of our Orange County office located at 5312 Cypress st, Cypress Ca 90630 (714) 471-1443 "ME,THODOLOGY" As with all of our projects, constant communication wriththe City's representative is crucial in i determining and prioritizing areas and roadways that are n most . urgent need of attention. T1s areas are identified and completed, the City's representative Nvill be notified upon completion and advised to inspect the work performed to ensure (as we go along) that the work was performed to the City's satisfaction, It is our intention to, identify any small problems early on and rectify immediately It will be the responsibility of the City's representative to provide us weekly or monthly updated list's, map's, location's the City, has identified as Roadway's in need of maintenance. In order to maximize production and be most cost effective, it is within the City's best interest to ensure a significant amount of work be provided with each area request So that we can maximize full 17 tion thereby' erey by use of out specialized equipment and personnel and limi t, the amount of mob a reducing the impact on traffic. Superior Pavement Markings Inc. also likes to keep our customers updated with the latest technology and material improvements in order to ensure out customers are aware of all available options. It is not anticipated the'Superior Pavement Markings Inc. would require the use, purchase or renting of any City owned facilities. "STA IS" , , FFINING.AN-1113 QUALIFICAFION s,tlperior Pavement Markinbrs his been in the striping and signing industry since March, 2000. We holot lot a C-32 "barking and Higbway improvemene, contractors license as well as a C-31 "Traffic Contror License, We currently provide roadway striping and maintenance services for 27 different cities including Irvine, Covina, West Covina, .lb Ontario, Downey, Murrieta,La Quinta,jurupa Valley Lancaster, Banning, Palm Desert, Palm Springs, Beverly Mills, Stanton, San Fernando, Xma. Chino Hills, C lore oat, Los Alamitos, Westn , . imster, Duarte, San E s, La Verne, Santa Monica C 1 0 Baldwin Park-, Placentia as well as the City of Costa Mesa. Its management has combined 135 Years, of construction and striping experience and employs an office staff of 11 and 32 field employees. Superior ovens 31 trucks specially outfitted for street and highway striping. 5312 Cvoress St CYPress Ca Tel. 714.99S.9100 Fax 714,995.9400 t6 17 1'he City"s main points of contact for this project would be as follows. John Lucas, President: 29 years of striping experience. In charge of ensuring. client satisfaction. Darren Veltz, Secretarv/freasurer and (,hief Estimator. 19 Years of striping experience: In charge of providing the original proposal, all Billing and negotiating any additional work. Robert Garcia, Operations manager: 25 Years of striping experience, In charge of the scheduling and coordination of the project. Victor Bust-atnante, 'Superintendent: 18 Years of striping experience: In charge of the field personnel. Sande- Dorswitt, 8 years of construction experience: In charge of all records and certified payrolls. "REFERENCF-S" 'Fhe following is a small list of similar projects Superior Pavement Markings has completed oris currently working on. For additional references please feel free to contact our office. City of Ontario 303 East B Street Ontario, CA 91764 -Annual Maint. Contract, Wayne Nash (909) 396-2636 City of Murrieta 24601 Jefferson Avenue Murrieta, Ca 92562......... Annual Maint. Contract Jason Morell (951) 453-3204 City Of Duarte 1600 Huntington Dr Duarte, Ca 91010........ Annual Maint. Contract, Troy Whittenbrock (626) 357-7931 City Of San Dimas Public Works 301 S. Walnut Avenue San Dimas, Ca 91773.... Annual Maint. Contract John Campbell (909) 394-6270 City Of Irvine I Civic Center Plaza Irvine, Ca 92606,....Annual Maint., Scott Roseberry (949) 724-7620 City of Santa Monica 2500 Michigan Ave Santa Monica, Ca 90404, ....Crosswalk restripe, Kori Jones (310) 458-2201 ext5002 John M. Lucas President X'140 t"unrAia& Q+ rhynrwtc Pn T&I 74A QQA Q-1An Vmv 74A 00A QAAn 1g I SUPERIOR PAVEMENT MARKINGS "FINANCIAL CAPACITY" Please find attached, financial statements for our Orange County operations. 5312 CYPRESS ST - CYPRE*-SS, CA - 9.0630 1-11-10NF: 114-995-9100 - FA1, ?14-995-9400 r1 bq 2.63 PM Superior Pavement Markings 02124116 Profit & Loss Accrual Basis January through December 2015 Expense Advertising and Promotion Jan • Dec 15 Ordinary Income/Expense 36,034.55 Income 3,371 Al Adjustments To Invoices -736.92 Construction Income 6,306,573.32 Total Income 6; 305,836.40 Cost of Goods Sold 465,358.00 Auto and Truck Expenses 595:00 Auto Allowance 4,099.14 Auto Maintenance 63;487.35 Auto Registration 21,154.00 Gasoline 209;056.00 Tolls 5,022.40 Vehicle Insurance 72,472.24 Vehicle Repairs 30,836.66 Auto and Truck Expenses - Other 140,104,94 Total Auto and Truck Expenses 546,232.73 Blueprints and Reproduction 25.00 Bond Expense 32,331:91 Business Licenses and Permits 3,427.03 Equipment Rental for Jobs 63;768.33 Job Materials 1,297,465.80 Payroll Wages - field 1,073,220.97 Plans & Specs 152.00 Reimbursement-Materials/Auto 319.89 Subcontractors 46,691.42 Tools and Small Equipment 7,021.94 Union Dues 451,639.93 Worker's Compensation Insurance 168,649.39 'total COGS 3,691,006.34 Cross Profit 2,614,830.06 Expense Advertising and Promotion 14,407.35 Bad debt 36,034.55 Bank Service Charges 3,371 Al Building Repairs 4,461.62 Chairtable contribution 5,886.05 Computer and Internet Expenses 3,613;16 Depreciation Expense 465,358.00 Donation 595:00 Dues and Subscriptions 3,627,04 Employee Relations 37.659.43 Equipment Repairs 29,954.91 Finance Charge 20.00 Insurance Expense General Liability insurance 48;318.57 Health Insurance 16,784.35 Life Insurance 7,237.01 Insurance Expense - other 13,594.65 Total Insurance Expense 79,934.58 Interest Expense 84:935.35 Janitorial Expense 3;386.31 Licenses & Permits 730.75 Meals and Entertainment 18.216:30 Office Supplies 21;788.79 Payroll Expense 40111 Employer's Contribution 11,639.47 P3R Tax Exp -per American PIR 152,782.57 Payril Proc Fee pd to American 7,875.08 Payroll .Expertise - Other 314,000.20 Total Payroll Expense 486,497:32 7A Page 1 2:53 PM Superior Pavement Markings 02124116 Profit & Lass Accrual Basis January through December 2015 Net Ordinary Income 362,616.61 Net income 362,616.61 7/2-- Page v Page 2 Jan - Dec fib Payroll Wages -Administrative Payroll Wages -Officer 196,276.00 Payroll Wages - Overhead 447,082.42 Total Payroll Wages -Administrative 643;358.42 Per Diem 5,982.40 Postage and Delivery 5,638.86 Professional Pees 23,716.31 Propane Tank 16,198.88 Rent Expense 96,861.54 Repairs and Maintenance 31,249A5 Shipping & Mail 346.56 Taxes 19,490,58 Telephone Expense 10,570.56 Travel Business Travel 28.257.08 Lodging 582.12 Total Travel 28,839.20 Utilities '69.476.97 Total Expense 2,252,213.45 Net Ordinary Income 362,616.61 Net income 362,616.61 7/2-- Page v Page 2 2;53 PM Superior Pavement Markings 02t24I16 Balance Sheet Accrual Basis As of December 31, 21315 TOTAL ASSETS 2,669,482,88 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable 467,345.79 Total Accounts Payable 467;345,79 Credit.Cards Dec 31,'15 ASSETS 5,057.53 Current Assets 5,057.53 CheckinglSavfngs Clti 6811 143,207.00 Citibank -6811 40,275.68 Reserve 11,000.00 Taxes 18,000.00 Total Citl 6811 69,275.68 Darren Veltz 605.78 John Lucas -1.226.27 US Bank Checking 3.853.63 US Bank Money Market 100.12 Total Checking/Savings 72,608.94 Accounts Receivable 747,127.74 Accounts Receivable 1,435,201.34 Total Accounts Receivable 1,435,201.34 Other Current Assets 32,491.78 Due To/From JP Striping 3,953.76 Employee Loans :.50.00 Suspense 30,289.25 Undeposited Funds 55,074.78 Total Other Current Assets 89,267.79 'total Current Assets 1,597,078.07 Fixed Assets Accumulated Depreciation -1;563,785,00 Automobiles & Lic Plate Equip 1,538,260.61 Equipment 965;914.36 Fumiture and Equipment 32.014.84 Total Fixed Assets 972,404.81 TOTAL ASSETS 2,669,482,88 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable 467,345.79 Total Accounts Payable 467;345,79 Credit.Cards Cid CC-Dartonxxxx3538 5,057.53 Total Credit Cards 5,057.53 Other Current Liabilities Curr Portion of Long Term Debt 143,207.00 Due 40111 Plan -Withheld from PIR -10,458.68 Payroll Liabilities 75.95 Prior Payroll Taxes Due Prior IRS 2010 PIR Tx tide 27,020.28 Prior IRS 2011 -1st PIR Tax Due 18,772:54 Prior IRS 2011 -3rd PIR Tax Due 72,844.72 Prior IRS 2011 -4th PIR Tax Due 23,262.61 Total Prior Payroll Taxes Due 141,900:15 Total Other Current Liabilities 274,724.42 Total Current Liabilities 747,127.74 Long Term Liabilities n 2 Less Cur Port of Long Term Debt -143,207.00 ?/J NIP - GE Capital (946.80) 32,491.78 Page 1 2:53 PM Superior Pavement Markings 02124116 Balance Sheet Accrual Basis As of December 31, 2015 Total Equity 1,089,602.65 TOTAL LIABILITIES & EQUITY 2,580,449,98 v— l Page 2 Dec 31, 15 NIP - Hitachi Capital (923.29) 28,881.21 NIP - Peoples United (8,258.00) 382.531.45 NIP Ally 872.51 41,495.88 NIP Citiboan LOC 6468 -768.61 NIP Hitachi 1172.04/Mo 36,596.26 NIP Hitatchl 1596.3910 25,303:46 NIP Toyota Fin. $668.01 1,099.90 NIP U S Bank 2837.00/Mo 12,091.22 NIP U S Sank"9886.75/Mo 247,204,06 Total Long Term Liabilities 723,719.59 Total Liabilities 1,470,847.33 Equity Capital Stock 250.00 Distributions Distribution -John -131:299.54 Dristribution-Darren -181.991.39 Distributions - Other 100000,0 Total Distributions -303,290.93 Retained Earnings 1,030,026.97 Net Income 362,616.51 Total Equity 1,089,602.65 TOTAL LIABILITIES & EQUITY 2,580,449,98 v— l Page 2 2.64 PAA Superior Pavement Markings 02/24116 i/P Aging Summary As of December 31, 2016 Page 1 Current 1-30 31 -60 61-90 > 90 TOTAL 3M 0.00 1,614.63 3.159.01 0.00 0.00 4.773.64 Abrasive Blasting 0.00 :0.00 0.00 1.140.00 0.00 1.144:00 AGC Of Califorina 0.00 0.00 3,625.04 0:00 0.00 3,625.04 American Rentals 0.00 1,246.43 1,791.03 1,288.38 39.67 4,365.51 American Traffic Products Inc. 0.00 45,445.27 48,278.93 122,850.39 49,729.43 266.304.02 ARCO Business Solutions 0.00 3,$55.93 3.735.00 0.00 0,00 7,590.93 Castle IT Solutions 0.00 2;785.52 0.00 0.00 0.00 2,785.52 Century Sweeping, Inc. 0.00 2,410.00 7,005.00 0.00 0.00 9,415.00 Clayson,'Mann, Yaeger & Hanson 0.00 700.00 0.00 0:00 0.00 700.00 Crown. Technology, LLC OM 0,00 0.00 0.00 2,686.81 2.686.81 GE Capital 0.00 955.64 0.00 0.00 0.00 955.64 Hose -Man, Inc. 0,00 19.68 76.12 0,00 OM 95,80 Incompli, Inc 0.00 850..00 0.00 0.00 0.00 850.00 International Sweeping, Inc. 0.00 1,495.00 0.00 0.00 0,00 1.495.00 Jahn Soldat 0.00 0.00 4;800.00 0.00 0.00 4.800.00 JP Striping - Vendor 0:00 0.00 0.00 0.00 5,248.29 5,248.29 MRL Equipment Company, Inc. 0.00 -625.00 0.00 0.00 0.00 -625.00 Mutual Propane 0:00 96.68 0:00 0.00 0-00 96.68 Napa -Los Alamitos 123.92 450.73 1.163.73 178,78 0.00 1,917.16 People's United Equipment Finance Corp 0.00 8,681:40 0.00 0.00 0.00 8,681.40 Pinnacle Surety 0.00 0..00 10,691.00 9.255.00 0.00 19,946.00 S.C. Signs & Supplies 0.00 12,02014 29,425.63 16,542.02 33,033.04 91„021.43 SC Fuels 3,122.32 7,35523 0.00 0.00 -1,173.85 9,303.70 Ten Ton Truck Center 0.00 0.00 494.32 0.00 0,00 494.32 Tifao Industries 0.00 284.91 194.00 0.00 0.00 475.91 Trinity Diversified, Inc.. 0-00 950.17 0.00 0.00 0.00 950.17 Venco Power Sweeping Inc 0.00 0.00 1;045.00 0.00 0.00 1,045.00 Verizon 0.00 252.16 0.00 0.00 0.00 252.16 Verizon Wireless 0.00 664.34 0.00 0.00 0.00 664.34 Vista Paints 0.00 6,964.92 371.37 177.39 -11:45 7,502.23 VVS of Grange County 0.00 0.00 0.00 0.00 --43.42 -43.12 Waterblasting Technologies 0.00 2,469.24 8.528.57 1,441.86 5.425.74 17,86541 TOTAL 3,246.24 100,943.62 124,380.76 152,873.82 94,934.26 476,378.69 Page 1 OO co 0 0) N a f- to C)101 cli 0 a 0 0 O 0 0 a C) n m 000 M a CO U') .4v C) 40 v OA m 4n 0 c1l in C) DO 0 Ln kt 0 0 10 a M r 0 N N 0 N-. 1` W 0 0 0 0 0 r, V C) 0 0 h M 10' 0 T- v N N 0 W �r M f� 0 T Iq to 4t (a 0 M Moi bo Lt) CO ci iDd pi r,: ci c� r -Z r4 ui 6 4 c5 oj j -,-: 4 U')' 0' '4 01 vi tl: 6 ui U-1 . . . . . . . . mulmmmoow 10 M "t -�t M - 0 (D IV - v4m ao-okn cj U7 00 (D �T LO V M (D tn N C) N to eq 0 t, Iq m -T in I -t cq 0. 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C r- m �d � - 4- CL oisis: 0 M 10 0 0 w ,0,0 0 0 0 0 W 0 0.0 E ga C, acs.. W 0: U -1 0 0) 'Will Z, Z� —>,Z� a = ce 0 E E L) m 0 n O<ov 0 =, 10-- w m m 02 16 ! (L to a 0 6 uj w w 0 0 0 0 0 -7 X x 2 z CL (K E IL IL ct t*-: Cl. Q. 04 0. 0. 9, N(p 4OR 42P uq� ZRt CW14 Wo 8 0"t C8 C8 at of, to— in M OU'j — —MN 100 CJC36 �:L6' VZ O cq q to r,i- Tq ('4 N 03 0 '1 to 0 0) -,t (N u-, "Iq - C-4 - V) r- a 0 in a 0 M LO 00000 00 lo 0000:. Im 0 0 (0 C) 0 N C4 0 0 IN r~ 0 C14 ID 0 0 0 0 N ci 6 c; o C6 vi -: 6 6 OD -, 6 ri vi c; C5 U50't U50' 00 M 0 'tMMr CA v GO no cl) It It CQ Nt 0(i Ih. A M L0 N tr o 04 goo o ON no cc oma8caoo, to 00 "Et CQ 't 10i 40 N C14 cli M Mo (D m w a, to V) cli N(0 r- r- - V) .0 0 E CD Cq o 0 CD 0 0 0 or-_ o o In N o a a C) Q D0' w q 1=1 q o V� q q ll� UnC! R C) q q q q C! a N a 0 CD 0 0 0) Ob CD o co 0 a a o 0 o M, -d- > c O 66 666666 60 C:5 Ono 6 w cq C > 0 0 CL � 0 OWL* u ap C M 0 0 C c fidm c3 00 W C) mw jc i= - u 0 O.&'a't .- > c � 0 0 c 0- 0 0 0 c .0 c m Z EE 0 0 W* tj LU jz :�% �� "o 442, E E E -8 Sr m 5- = �S — *9 < W-7 0 0 em "e 0 'B"s 5 0 S ;Lc N 0. TI - �A6 document 1 -2010 e" : E e CONTRACTOR: t=firm . Iegal ttrrtrrs ajul address) Superior Pavement Markings, Inc. 5312 Cypress Street Cypress, CA 9060 OWNER: IN'tiumn legal stoats anal address) City of Costa Mesa 2300 Placentia Avenue, Costa Mesa, CA, 92627 SURETY: (Al ailre, .ketal surttts,onel pr rrripal,/dace o, busines51 United fire & Casualty Company P. 0. Box 73909 . Cedar Rapids, IA 52407-3909 BOND AMOUNT: (10%) Ten percent of the attached bid amount This document has important legal consequences. Consultation with an attorney is encouraged with respect to completion or modification Any singular reference to Contractor. Surety. Owner or other party shah be considered plural where applicable. PROJECT: h Niro . location or address, -aril Project number. Jai iq IFB no. 16-29 l Street Striping & Thermoplastic Markings Project Number, if any: 16-29 The Contractor and Surety are hound to the Owner in the aniount set forth above, for the payment oi"which the Contractor and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, as provided herein. The conditions of this Bond are such that if the OscTicr accepts the bid of the Contractor within the time specified in the bid documents, or within such time period as may he agreed to by the Owner and contractor, and the Contractor either (1) enters into a contract with the Caner in accordance with the terms or such bid, and gives such bond or bonds as may be specified in the bidding or Contract Documents, -with a surety admitted in the jurisdiction of the Project and otherwise acceptable to the Owner, for the faithful performance or such Contract and for the prompt payment of labor and material furnished in the prosecution thereof. or (2l pays to the Owiwr the difference. not to exceed the amount of this Bond, between the amount specified in said hid and such larger amount for which the Owner may in -gond faith contract with another Harty to perforn€ the work covered by said hid.. then this obligation shall be null and void, otherwise to remain in full force and effect. The surety hereby waives any notice of an agreement between the Owner and Contractor to extend the time in which the Owner may accept the bid. Waiver of notice by the Surey- shall not apply to any extension exceeding sixty 00) days in the aggregate beyond the time for acceptance of bids sptscified in the bid dcicuntents, and the Owner and Contractor shah obtain tht; Surety's consent for an extensidn beyond °--ixtt (60) days. if this Bond is issued in. connection with a subcontractor's bid to a Contractor, the term C'ontraetor hi this Bond shall be deemed it, be Subcontractor anti the term Owner shall be deorned to be Cu€uractbr. When this Bond has been furnished to comply with a statutory or other legal requirement in the location of the Projecl, any provision in this Bond conflictingwith said statutory or legal requirement shrill be deemed deleted herefrom and P visitrns conforming to such stawtory or other legal requirement AMR be deemed incorporated herein. When so Ful fished. the intent is that this Bond shall be construed as a statutory bond and not as a common Bete= Mind. Si "kan sealed this 24th day of February, 2016 Superior arkinrns, I c. _._ (Prirtril�a{i r 5enfi1 _ L tTwei United Fir & Casualty Company zrre tS *cit i lI1'itnEssi Patrick ltatttiner tnit: AIA DocumentA310— 2010. Copyrighr� 1963, 1970 sitd 2©10 by The Arnerivao Institute of Atct itecls A ,�ia'hts reserved. WARN11,10; This AlA— florheirnt is protected by U.S t:opyril;tit Liw and I nternationrO Truatiot Unauthorized reprrrt rsti:xse Qr iistributionofthiS AIADocument, or any Portion of it, may result h severe civil and criminal Penalties. and will be prosecuted to the :naxllnum extent possibin under taw law. This document was created on fit{27 2012 07"23:12 under the terms of AlA,Documents,on-Demand" order nig. 2008397483 and is not fbr rasala This document ;s licensed by The American Ir<stilute of Architects for one -tune use only and may not tie reproduced Orin, to its comoletion. VItvn M-1 CALIFORNIA ALL-PURPOSIE ACKNOWLEDGEMENT Civil Code 1189 Notary Public or other officer completing this certificate verifies only the identity of the individual who signed tI document to which this certificate is attached, and not the truthfulness, accuracy.. or validity of that document. STATE OF CALIFORNIA COUNTY OF ©RANGE Can February 25, 2016 before me, Sandy Dorswitt, personally appeared Darren Veltz who ;proved to me on the basis of satisfactory evidence oto be the person} whose nameW iskafe subscribed to the within instrument and acknowledged to me that heisheAhey executed the same in hislheffte# authorized capaeity4k�s), and that by his4ie#th& signature (-Q on the instrument the personal, or the entity upon behalf of which the persons} acted, executed the instrument. jt40201es U C I certify under PENALTY OF PERJRY under the laws of £ ices Jun 2t, 2017 the State of California that the foregoing paragraph is true and correct. WITNESS my ha d and official seal' Signature Sandy itt, otwy Public Notary Seal OPTIONAL nurrrroi -i Description of Attached Document Title or type of Document: s � Document Date: February 25, 201.6 Number of Pages: Signer(s) Other Than Named Above:_ Stephanie Huang & Patrick Rammer Capacity(ies) Claimed by Signer(s). Signer's dame Individual Corporate Officer — Title(s) Partner — Limited/General %l Attorney In Fact Trustee Guardian or conservator Other Signer is Representing. Darren Veltz Signer's Name Owner/Secretary Right Thumbprint of Signer EJ Individual 71l Corporate Officer — Title(s) Partner— Limited/Generat E]Attorney In Fact Right Thumbprint of Signer Trustee ] Guardian or conservator F--] Other Superior Pavement Markings, Inc. CALIFORNLA ALL-PURPOSE ACKNOWLEDGMENT CML CODE 11.80 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. State of California County of Orange On before me, Barbara Copeland Notary Public, personally appeared Stephanie Hoang who proved to me on the basis of s ' atisfactoiy evidcnco to be the person(s) -,-,,-hosc name(s) islarc subscribed to the within instrument and acknowledged to the that helshefthcy executed the same in liis/herft6r- authorized capacity(ics). and that by his/herttlicir signature(&) on the instrument the person(s-), or the entity upon behalf of which the person(s) acted. executed the instrument. BARBARA COPELAND t 20163 D Commission # 20163n48 z Notary Public - California z Orange County My Comm. Expires Apr 19, 2017 Place Notary Scat Above I cerfifv under PENAI:rY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS m., hand and official seal. SignatureMZ C-;' I Signature lblciary- Public (WIONAL Though the information below is not required by late. it inky prove valuable to persons relying on the docurnent and could present fraudulent and reattactunentof this forni to another document. Description of Attached Document Type or Title of Document: Document Date: 'Number of Pages: Signer(s) Other Than Named Above- Capacity(ies) Claimed by Signer(s) Signer's Name: -Stephanie Hoang El Individual El Corporate Officer - Tide(s), Partner: FILimited El General Attomev in Fact f-1 Trustee n Guardian or Conservator 0 Other - Signer is Representing: Capacity(ies) Claimed by Signer(s) Signer's Name-. Individual El Corporate Officer - Title(s):_ F-1 Partner:, ElLimited F1 General [I Attorney in Fact F] Trustee El Guardian or Conservator Q Other Signer Is Representing:__ Rev. 1-15 ' D UNITED FIRE & CASUALTY CONIPANY, CEDAR RAPIDS, IA UNITED FIRE & INDEMNITY COI4IPANY, WEBSTER, TX Inquiries. Surety Department [aim FINANCIAL PACIFIC INSURANCE COMPANY, ROCKLIN, CA 118 Second Ave SE CERTIFIED COPY OF POWER OF ATTORNEY Cedar Rapids, IA 52401 (original on file at Home Office of Company - See Certification) KNOW ALL PERSONS BY THESE PRESENTS, That UNITED FIRE. & CASUALTY COMPANY, a corporation duly organized and existing under the lave of the State of Iowa; UNITED FIRE & INDEMNITY COMPANY, a corporation duly organized and existing under the laws of the State of Texas; and FINANCIAL PACIFIC INSURANCE COMPANY, a .corporation duly organized and existing under the laws of the State of California (herein collectively called the CornppEfS anies and having their corporate headquarters to Cedar ids, State of Iowa, does make, constitute andappoint JENNIFER GR5NROOD OF MERIDIANR�, ID; OR ERIC LOWEY, OR MARK RICHARON; OR STEPHANIE HOANG, OR SHAWN BLUME, KEVIN CATHCART, ALL INDIVIDUALLY of COSTA MESA CA their true and lawful Attorney(s)an-Fact with power and authority hereby conferred to sign., seat and execute in its behalf all lawful bonds; undertakings and other obligatory instruments of similar nature provided that no single obligation shall exceed $50,000,000.00 and to bind the Companies thereby as fully and to the same extent as if such instruments were signed by the duly authorized officers of the Companies and all of the acts of said Attorney, Pursuant to the authority hereby given and hereby ratified and confirmed, The Authority hereby granted is continuous and shall remain in full force and effect until revoked by UNITED FIRE & CASUALTY COMPANY, UNITED FIRE & INDEMNITY COMPANY, AND FINANCIAL PACIFIC INSURANCE COMPANY. This Pourer of Attorney is made and executed pursuant to and by authority of the following bylaw duly adopted on May 15, 200, by the Boards of Directors of UNITED FIRE & CASUALTY COMPANY, UNITED FIRE & INDEMNITY COMPANY, and FINANCIAL PACIFIC INSURANCE COMPANY. "Article VI - Surety Bonds and Undertakings" Section 2, Appointment of Attorney -in -Fact. "The President or any Vice President, or any other officer of the Companies may., from time to time, appoint by written certificates attorneys -in -fact to act in behalf of the Companies in the execution of policies of insurance, bonds, undertakings and other obligatory instruments of like nature. The signature of any officer authorized hereby, and the Corporate seal, may be affixed by facsimile to any power of attorney or special power of attorney or certification of either authorized hereby; such signature and seal, when so used, being adopted by the Companies as the original signature of such officer and the original seal of the Companies, to be valid and binding upon the Companies with the same force and effect as though manually affixed. Such attorneys -in -fact, subject to the limitations set forth in their respective certificates of authority shall have full power to bind the Companies by their signature and execution of any such. instruments and to attach the seal of the Companies thereto. The President or any 'Vice President, the Board of Directors or any other officer of the Companies may at any time revoke all power and authority previously given to any attorney-in-fact_ ``i`,�11 }r -t sutflj,j )tiilhttijj iN jh'ITNESS4' HEREOF, the. COMPANIES have each caused these presents to be signed by its 1 _a j 1t1t1 %N P* �jt, tt\tt11)f11)t11i7y�f' k4 °. * ` viceP resident and its corporate seal to be hereto affixed this 7th stay of August, 2014 �.'� CotiMtORn7E 3m CF1Ri'fi81tTTE ° ? Q �2r''�Rpfl�4t�'�in W —•.— 9L >_ = 3uteaa o' UNITED FIRE & CASUALTY COMPANY _' = UNITED FIRE & IhDEMI r1Y COMPANY 1r�L3�* r.2a�' x FINANCIAL `PACIFIC INSURANCE COMPANY JFljgtlP mjtl(tt111Ut �ry t�\� t4f!!{i,ilii5t4t�t By,. U State of Iowa, County of Linn, ss: Vrce President On 7th day of August, 2014, before me personally came Dennis J. Richmahn to me known, who being by me drily sworn, did depose and say, that he resides in Cedar Rapids, State of Iowa; .that he is a Vice President of UNITED FIRE & CASUALTY COMPANY, a Vice President of UNITED FIRE & INDEMNITY COMPANY, and a Vice President of FINANCIAL PACIFIC INSURANCE COMPANY the corporations described in and which executed the above instrument; that he knows the seal of said corporations; that the seal affixed to the said instrument is such corporate seal, that it was so affixed pursuant to authority given by the Board of Directors of said corporations and that he signed his frame thereto pursuant to like authority, and acknowledges' same to be the act and deed of said corporations. Mary A. Bertsch G icwe Notarial Seal Commission number 713273 Notary Publicow> My Commission Expires 1=6/2olts My commission expires: 10/26/2016 1, David A. Lange, Secretary of UNITED FIRE & CASUALTY COMPANY and Assistant Secretary of UNITED FIRE & INDEMNITY COMPANY, and Assistant Secretary of FINIANCIAL PACIFIC INSURANCE COMPANY, do hereby certify that i have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Section of the bylaws and resolutions of said Corporations as set forth in said Power of Attorney, with the ORIGINALS ON FILE IN THE HOME OFFICE OF SAID CORPORATIONS, and that the same are correct transcripts thereof, and of the whole of the said originals; and that the said Power of Attorney has not been revoked and is now in. full force and effect. In testimony whereof I have hereunto subscribed my name and affixed the corporate seal of the said Corporations this t, day of FeJ)P 20 i `�1 6t4},ly, t 5(1th17/ etU3)14HIth7tR� } COAPORATF.95y ✓�µr,�AQ � � �<y`i`�� ✓'r��a ;� tYi d„�'w C'r£!�O$?`.14 ' �c t Secretary, UF&.0 hfAl}{!11 thttt2tiD1�`�t Assistant Secretary, OF&I.TPIC iTi7f4A f)fS.tCiPiS 1 t Questions & Answers IFB# 16-29 STREET STRIPING & THERMOPLASTIC MARKINGS 1. Will there be a deed for a Bid Bond? Yes 2. Will the low bidder'be required to supply a labor, material & Performance 'Bond? Yes 57- ATTACHMENT 2 CITY OF COSTA MESA PROFESSIONAL SERVICES AGREEMENT WITH SUPERIOR PAVEMENT MARKINGS, INC. THIS AGREEMENT is made and entered into this 5th day of April, 2016 ("Effective Date"), by and between the CITY OF COSTA MESA, a municipal corporation ("City"), and SUPERIOR PAVEMENT MARKINGS, INC., California corporation C2868038 ("Consultant"). WITNESSETH: A. WHEREAS, City proposes to utilize the services of Consultant as an independent contractor to provide street stripping and thermoplastic services, as more fully described herein; and B. WHEREAS, Consultant represents that it has that degree of specialized expertise contemplated within California Government Code Section 37103, and holds all necessary licenses to practice and perform the services herein contemplated; and C. WHEREAS, City and Consultant desire to contract for the specific services and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and D. WHEREAS, no official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: 1.0. SERVICES PROVIDED BY CONSULTANT 1.1. Scope of Services. Consultant shall provide the professional services described in the City's Invitation for Bid ("IFB"), attached hereto as "Exhibit A," and Consultant's Response to City's IFB ("Response") attached hereto as Exhibit "B," both incorporated herein by this reference. 1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant's performance of this Agreement. 1.3. Performance to Satisfaction of City. Consultant agrees to perform all the work to the complete satisfaction of the City and within the hereinafter specified. Evaluations of the work will be done by the City's Chief Executive Officer ("City CEO") or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to: (a) Meet with Consultant to review the quality of the work and resolve the matters of concern; (b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or (c) Terminate the Agreement as hereinafter set forth. 1.4. Warranty. Consultant warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers' compensation insurance and safety in employment; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Consultant shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys' fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above-mentioned laws, which may be incurred by reason of Consultant's performance under this Agreement. 1.5. Non-discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical handicap, medical condition, marital status, sexual gender or sexual orientation, except as permitted pursuant to Section 12940 of the Government Code. 1.6. Non -Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement. 1.7. Delegation and Assignment. This is a personal service contract, and the duties set forth herein shall not be delegated or assigned to any person or entity without the prior written consent of City. Consultant may engage a subcontractor(s) as permitted by law and may employ other personnel to perform services contemplated by this Agreement at Consultant's sole cost and expense. 1.8. Confidentiality. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this Section shall survive the termination of this Agreement. 2.0. COMPENSATION AND BILLING 2.1. Compensation. Consultant shall be paid in accordance with the fees set forth in Exhibit B. Consultant's annual compensation shall not exceed One Hundred and Fifty Thousand Dollars and Zero Cents ($150,000.00) Consultant's total compensation, including the original term and any extensions thereof, shall not exceed Seven Hundred and Fifty Thousand Dollars and Zero Cents ($750,000.00). 2.2. Additional Services. Consultant shall not receive compensation for any services provided outside the scope of services specified in the Consultant's Proposal unless the City or the Project Manager for this Project, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. 2.3. Method of Billing. Consultant may submit invoices to the City for approval on a progress basis, but no more often than two times a month. Said invoice shall be based on the total of all Consultant's services which have been completed to City's sole satisfaction. City shall pay Consultant's invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail, the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as "Additional Services" and shall identify the number of the authorized change order, where applicable, on all invoices. 2.4. Records and Audits. Records of Consultant's services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City or its Project Manager for inspection and/or audit at mutually convenient times for a period of three (3) years from the Effective Date. 3.0. TIME OF PERFORMANCE 3.1. Commencement and Completion of Work. The professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement. 3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party. 4.0. TERM AND TERMINATION 4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of three years, ending on April 4, 2019, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties. The City has the option to extend the Agreement for up to two periods of one year each. 4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing written notice to Consultant. The termination of this Agreement shall be deemed effective upon receipt of the notice of termination. In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City. 4.3. Compensation. In the event of termination, City shall pay Consultant for reasonable costs incurred and professional services satisfactorily performed up to and including the date of City's written notice of termination. Compensation for work in progress shall be prorated based on the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein. In ascertaining the professional services actually rendered hereunder up to the effective date of termination of this Agreement, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents pertaining to the services contemplated herein whether delivered to the City or in the possession of the Consultant. 4.4. Documents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of delivery of termination notice to Consultant, at no cost to City. Any use of uncompleted documents without specific written authorization from Consultant shall be at City's sole risk and without liability or legal expense to Consultant. 5.0. INSURANCE 5.1. Minimum Scope and Limits of Insurance. Consultant shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company admitted to do business in California, rated "A," Class X, or better in the most recent Best's Key Insurance Rating Guide, and approved by City: (a) Commercial general liability, including premises -operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit. (b) Business automobile liability for owned vehicles, hired, and non -owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence for bodily injury and property damage. (c) Workers' compensation insurance as required by the State of California. Consultant agrees to waive, and to obtain endorsements from its workers' compensation insurer waiving subrogation rights under its workers' compensation insurance policy against the City, its officers, agents, employees, and volunteers arising from work performed by Consultant for the City and to require each of its subcontractors, if any, to do likewise under their workers' compensation insurance policies. (d) Professional errors and omissions ("E&O") liability insurance with policy limits of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence and aggregate. Architects' and engineers' coverage shall be endorsed to include contractual liability. If the policy is written as a "claims made" policy, the retro date shall be prior to the start of the contract work. Consultant shall obtain and maintain, said E&O liability insurance during the life of this Agreement and for three years after completion of the work hereunder. 5.2. Endorsements. The commercial general liability insurance policy and business automobile liability policy shall contain or be endorsed to contain the following provisions: (a) Additional insureds: "The City of Costa Mesa and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Consultant pursuant to its contract with the City; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; automobiles owned, leased, hired, or borrowed by the Consultant." (b) Notice: "Said policy shall not terminate, be suspended, or voided, nor shall it be cancelled, nor the coverage or limits reduced, until thirty (30) days after written notice is given to City. (c) Other insurance: "The Consultant's insurance coverage shall be primary insurance as respects the City of Costa Mesa, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of Costa Mesa shall be excess and not contributing with the insurance provided by this policy." (d) Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of Costa Mesa, its officers, officials, agents, employees, and volunteers. (e) The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5.3. Deductible or Self -Insured Retention. If any of such policies provide for a deductible or self-insured retention to provide such coverage, the amount of such deductible or self-insured retention shall be approved in advance by City. No policy of insurance issued as to which the City is an additional insured shall contain a provision which requires that no insured except the named insured can satisfy any such deductible or self-insured retention. 5.4. Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. The certificates of insurance shall be attached hereto as Exhibit "C" and incorporated herein by this reference. 5.5. Non -limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which Consultant may be held responsible for payments of damages to persons or property. 6.0. GENERAL PROVISIONS 6.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement. 6.2. Representatives. The City CEO, or his or her designee, shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement. Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement. 6.3. Project Managers. City shall designate a Project Manager to work directly with Consultant in the performance of this Agreement. Consultant shall designate a Project Manager who shall represent it and be its agent in all consultations with City during the Initial Term or any renewal terms of this Agreement. Consultant or its Project Manager shall attend and assist in all coordination meetings called by City. 6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, facsimile or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; and b) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. IF TO CONSULTANT: Superior Pavement Markings, Inc. 5312 Cypress Street Cypress, CA 90630 Tel: (714) 995-9100 Attn: Darren Veltz darren@superiorpavementmarkings.com IF TO CITY - City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92626 Tel: (714) 754-7470 Attn: Public Services Department Courtesty Copy to: City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92626 Attn: Finance Department I Purchasing 6.5. Drug-free Workplace Policy. Consultant shall provide a drug-free workplace by complying with all provisions set forth in City's Council Policy 100-5, attached hereto as Exhibit "D" and incorporated herein by reference. Consultant's failure to conform to the requirements set forth in Council Policy 100-5 shall constitute a material breach of this Agreement and shall be cause for immediate termination of this Agreement by City. 6.6. Attorneys' Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. 6.7. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California. 6.8. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant's interest in this Agreement without City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City's consent, no subletting or assignment shall release Consultant of Consultant's obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement. 6.9. Indemnification and Hold Harmless. Consultant agrees to defend, indemnify, hold free and harmless the City, its elected officials, officers, agents and employees, at Consultant's sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the City, its elected officials, officers, agents and employees arising out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected officials, officers, agents and employees based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City's specifications or Consultant's Proposal, which shall be of no force and effect. 6.10. Independent Contractor. Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its or employees are in any manner agents or employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Consultant shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with the applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this paragraph. 6.11. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 6.12. Cooperation. In the event any claim or action is brought against City relating to Consultant's performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation which City might require. 6.13. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys' fees, arising out of or resulting from City's use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliver to City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files audio tapes or any other Project related items as requested by City or its authorized representative, at no additional cost to the City. 6.14. Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code Section 6250 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code Section 6254.7, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court. 6.15. Conflict of Interest. Consultant and its officers, employees, associates and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Consultant's services under this agreement, including, but not limited to, the Political Reform Act (Government Code Sections 81000, et seq.) and Government Code Section 1090. During the term of this Agreement, Consultant and its officers, employees, associates and subconsultants shall not, without the prior written approval of the City Representative, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subconsultants to abstain from a decision under this Agreement pursuant to a conflict of interest statute. 6.16. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City's representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant occurs, then Consultant shall, at no cost to City, provide all necessary design drawings, estimates and other Consultant professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. 6.17. Prohibited Employment. Consultant will not employ any regular employee of City while this Agreement is in effect. 6.18. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced. 6.19. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 6.20. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Consultant and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement. 6.21. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 6.22. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 6.23. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement. 6.24. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 6.25. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 6.26. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. 6.27. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written. CITY OF COSTA MESA Chief Executive Officer Interim Finance Director Department Head/Director CONSULTANT Date: Date: Date: Date: Signature Name and Title Social Security or Taxpayer ID Number ATTEST: City Clerk APPROVED AS TO FORM: Date: City Attorney APPROVED AT TO INSURANCE: Date: Risk Management APROVED AS TO CONTENT: Date: Project Manager EXHIBIT A INVITATION FOR BID EXHIBIT B CONSULTANT'S RESPONSE EXHIBIT C CERTIFICATES OF INSURANCE EXHIBIT D CITY COUNCIL POLICY 100-5 SUBJECT POLICY EFFECTIVE PAGE NUMBER DATE DRUG-FREE WORKPLACE 100-5 8-8-89 1 of 3 BACKGROUND Under the Federal Drug -Free Workplace Act of 1988, passed as part of omnibus drug legislation enacted November 18, 1988, contractors and grantees of Federal funds must certify that they will provide drug-free workplaces. At the present time, the City of Costa Mesa, as a sub -grantee of Federal funds under a variety of programs, is required to abide by this Act. The City Council has expressed its support of the national effort to eradicate drug abuse through the creation of a Substance Abuse Committee, institution of a City-wide D.A.R.E. program in all local schools and other activities in support of a drug-free community. This policy is intended to extend that effort to contractors and grantees of the City of Costa Mesa in the elimination of dangerous drugs in the workplace. PURPOSE It is the purpose of this Policy to: 1. Clearly state the City of Costa Mesa's commitment to a drug-free society. 2. Set forth guidelines to ensure that public, private, and nonprofit organizations receiving funds from the City of Costa Mesa share the commitment to a drug-free workplace. POLICY The City Manager, under direction by the City Council, shall take the necessary steps to see that the following provisions are included in all contracts and agreements entered into by the City of Costa Mesa involving the disbursement of funds. 1. Contractor or Sub -grantee hereby certifies that it will provide a drug-free workplace by: a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in Contractor's and/or sub -grantee's workplace, specifically the job site or location included in this contract, and specifying the actions that will be taken against the employees for violation of such prohibition; SUBJECT POLICY EFFECTIVE PAGE NUMBER DATE DRUG-FREE WORKPLACE 100-5 8-8-89 2 of 3 b. Establishing a Drug -Free Awareness Program to inform employees about: 1. The dangers of drug abuse in the workplace; 2. Contractor's and/or sub -grantee's policy of maintaining a drug-free workplace; 3. Any available drug counseling, rehabilitation and employee assistance programs; and 4. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; c. Making it a requirement that each employee to be engaged in the performance of the contract be given a copy of the statement required by subparagraph A; d. Notifying the employee in the statement required by subparagraph 1 A that, as a condition of employment under the contract, the employee will: 1. Abide by the terms of the statement; and 2. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five (5) days after such conviction; e. Notifying the City of Costa Mesa within ten (10) days after receiving notice under subparagraph 1 D 2 from an employee or otherwise receiving the actual notice of such conviction; f. Taking one of the following actions within thirty (30) days of receiving notice under subparagraph 1 D 2 with respect to an employee who is so convicted: 1. Taking appropriate personnel action against such an employee, up to and including termination; or 2. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health agency, law enforcement, or other appropriate agency; SUBJECT POLICY EFFECTIVE PAGE NUMBER DATE DRUG-FREE WORKPLACE 100-5 8-8-89 3 of 3 g. Making a good faith effort to maintain a drug-free workplace through implementation of subparagraphs 1 A through 1 F, inclusive. 2. Contractor and/or sub -grantee shall be deemed to be in violation of this Policy if the City of Costa Mesa determines that: a. Contractor and/or sub -grantee has made a false certification under paragraph 1 above; b. Contractor and/or sub -grantee has violated the certification by failing to carry out the requirements of subparagraphs 1 A through 1 G above; c. Such number of employees of Contractor and/or sub -grantee have been convicted of violations of criminal drug statutes for violations occurring in the workplace as to indicate that the contractor and/or sub -grantee has failed to make a good faith effort to provide a drug-free workplace. 3. Should any contractor and/or sub -grantee be deemed to be in violation of this Policy pursuant to the provisions of 2 A, B, and C, a suspension, termination or debarment proceeding subject to applicable Federal, State, and local laws shall be conducted. Upon issuance of any final decision under this section requiring debarment of a contractor and/or sub -grantee, the contractor and/or sub -grantee shall be ineligible for award of any contract, agreement or grant from the City of Costa Mesa for a period specified in the decision, not to exceed five (5) years. Upon issuance of any final decision recommending against debarment of the contractor and/or sub -grantee, the contractor and/or sub -grantee shall be eligible for compensation as provided by law.