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Home My WebLink AboutAyala Engineering Inc; 2018-09-10; PWM19-492UTILPWM19-492UTIL Sewer Manhole No. 27B-4 Rehabilitation Cont. No. 55031 Page 1 of 6 City Attorney Approved 9/27/16 CITY OF CARLSBAD MINOR PUBLIC WORKS CONTRACT SEWER MANHOLE NO. 27B-4 REHABILITATION CONT. NO. 55031 This agreement is made on the ______________ day of _________________________, 2018, by the City of Carlsbad, California, a municipal corporation, (hereinafter called "City"), and Ayala Engineering, Inc., a California corporation whose principal place of business is 8482 E. Meadowridge St., Anaheim, CA 92808 (hereinafter called "Contractor"). City and Contractor agree as follows: DESCRIPTION OF WORK. Contractor shall perform all work specified in the Contract documents for the project described by these Contract Documents (hereinafter called "Project"). PROVISIONS OF LABOR AND MATERIALS. Contractor shall provide all labor, materials, tools, equipment, and personnel to perform the work specified by the Contract Documents unless excepted elsewhere in this Contract. CONTRACT DOCUMENTS. The Contract Documents consist of this Contract, exhibits to this Contract, Contractor's Proposal, the Plans and Specifications, the General Provisions, addendum(s) to said Plans and Specifications, and all proper amendments and changes made thereto in accordance with this Contract or the Plans and Specifications, all of which are incorporated herein by this reference. When in conflict, this Contract will supersede terms and conditions in the Contractor’s proposal. LABOR. Contractor will employ only skilled workers and abide by all State laws and City of Carlsbad Ordinances governing labor. GUARANTEE. Contractor guarantees all labor and materials furnished and agrees to complete the Project in accordance with directions and subject to inspection approval and acceptance by: Don Wasko (City Project Manager) WAGE RATES. The general prevailing rate of wages for each craft or type of worker needed to execute the Contract shall be those as determined by the Director of Industrial Relations pursuant to Sections 1770, 1773 and 1773.1 of the Labor Code. Pursuant to Section 1773.2 of the Labor Code, a current copy of the applicable wage rates is on file in the Office of the City Engineer. Contractor shall not pay less than the said specified prevailing rates of wages to all workers employed by him or her in execution of the Contract. Contractor shall be responsible for insuring compliance with provisions of section 1777.5 of the Labor Code and section 4100 et seq. of the Public Contracts Code, "Subletting and Subcontracting Fair Practices Act." The City Engineer is the City's "duly authorized officer" for the purposes of section 4107 and 4107.5. The provisions of Part 7, Chapter 1, of the Labor Code commencing with section 1720 shall apply to the Contract for work. A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, unless currently registered and qualified to perform public work pursuant to Section 1725.5. This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. Contractor and any subcontractors shall comply with Section 1776 of the California Labor Code, which generally requires keeping accurate payroll records, verifying and certifying payroll records, and making them available for inspection. Contractor shall require any subcontractors to comply with Section 1776. DocuSign Envelope ID: A82A2B53-1CF5-4AF8-AB97-0D3B4E8CA962 10th September PWM19-492UTIL Sewer Manhole No. 27B-4 Rehabilitation Cont. No. 55031 Page 2 of 6 City Attorney Approved 9/27/16 FALSE CLAIMS. Contractor hereby agrees that any contract claim submitted to the City must be asserted as part of the contract process as set forth in this agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. The provisions of Carlsbad Municipal Code sections 3.32.025, 3.32.026, 3.32.027 and 3.32.028 pertaining to false claims are incorporated herein by reference. Contractor hereby acknowledges that the filing of a false claim may subject the Contractor to an administrative debarment proceeding wherein the contractor may be prevented from further bidding on public contracts for a period of up to five years and that debarment by another jurisdiction is grounds for the City of Carlsbad to disqualify the Contractor or subcontractor from participating in contract bidding. Signature: ___________________________________ Print Name: ______________Ricardo Ayala__________ REQUIRED INSURANCE. The successful contractor shall provide to the City of Carlsbad, a Certification of Commercial General Liability and Property Damage Insurance and a Certificate of Workers’ Compensation Insurance indicating coverage in a form approved by the California Insurance Commission. The certificates shall indicate coverage during the period of the contract and must be furnished to the City prior to the start of work. The minimum limits of liability insurance are to be placed with California admitted insurers that have a current Best's Key Rating of not less than "A-:VII"; OR with a surplus line insurer on the State of California’s List of Approved Surplus Line Insurers (LASLI) with a rating in the latest Best’s Key Rating Guide of at least “A:X”; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report. Commercial General Liability Insurance of Injuries including accidental death, to any one person in an amount not less than……..$1,000,000 Subject to the same limit for each person on account of one accident in an amount not less than ….…$1,000,000 Property damage insurance in an amount of not less than……..$1,000,000 Automobile Liability Insurance in the amount of $1,000,000 combined single limit per accident for bodily injury and property damage. In addition, the auto policy must cover any vehicle used in the performance of the contract, used onsite or offsite, whether owned, non-owned or hired, and whether scheduled or non- scheduled. The automobile insurance certificate must state the coverage is for “any auto” and cannot be limited in any manner. The above policies shall have non-cancellation clauses providing that thirty (30) days written notice shall be given to the City prior to such cancellation. The policies shall name the City of Carlsbad as an additional insured. The full limits available to the named insured shall also be available and applicable to the City as an additional insured. WORKERS’ COMPENSATION AND EMPLOYER’S LIABILITY. Workers’ Compensation limits as required by the California Labor Code. Workers’ Compensation will not be required if Contractor has no employees and provides, to City’s satisfaction, a declaration stating this. BUSINESS LICENSE. The Contractor and all subcontractors are required to have and maintain a valid City of Carlsbad Business License for the duration of the contract. DocuSign Envelope ID: A82A2B53-1CF5-4AF8-AB97-0D3B4E8CA962 PWM19-492UTIL Sewer Manhole No. 27B-4 Rehabilitation Cont. No. 55031 Page 3 of 6 City Attorney Approved 9/27/16 INDEMNITY. The Contractor shall assume the defense of, pay all expenses of defense, and indemnify and hold harmless the City, and its officers and employees, from all claims, loss, damage, injury and liability of every kind, nature and description, directly or indirectly arising from or in connection with the performance of the Contract or work; or from any failure or alleged failure of Contractor to comply with any applicable law, rules or regulations including those related to safety and health; and from any and all claims, loss, damages, injury and liability, howsoever the same may be caused, resulting directly or indirectly from the nature of the work covered by the Contract, except for loss or damage caused by the sole or active negligence or willful misconduct of the City. The expenses of defense include all costs and expenses including attorneys’ fees for litigation, arbitration, or other dispute resolution method. JURISDICTION. The Contractor agrees and hereby stipulates that the proper venue and jurisdiction for resolution of any disputes between the parties arising out of this agreement is San Diego County, California. Start Work: Contractor agrees to start within twenty (20) working days after receipt of Notice to Proceed. Completion: Contractor agrees to complete work within twenty (20) working days after receipt of Notice to Proceed. CONTRACTOR’S INFORMATION. Ayala Engineering, Inc. 8482 E. Meadowridge St. (name of Contractor) 959385 (street address) Anaheim, CA 92808 (Contractor’s license number) A - General Engineering Contractor 3/31/19 (city/state/zip) 714-823-7179 (license class. and exp. date) 1000005012 (telephone no.) 714-912-4571 (DIR registration number) 6/30/19 (fax no.) Ricardo@Ayalaengineering.com (DIR registration exp. date) (e-mail address) / / / / / / / / / / / / / / / / / / / / / DocuSign Envelope ID: A82A2B53-1CF5-4AF8-AB97-0D3B4E8CA962 PWM19-492UTIL Sewer Manhole No. 27B-4 Rehabilitation Cont. No. 55031 Page 4 of 6 City Attorney Approved 9/27/16 AUTHORITY. The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. CONTRACTOR AYALA ENGINEERING, INC., a California corporation CITY OF CARLSBAD, a municipal corporation of the State of California By: By: (sign here) Ricardo Ayala / CEO / CFO / Secretary Terry Smith / Interim Utilities Director as authorized by the City Manager (print name/title) By: (sign here) (print name/title) If required by City, proper notarial acknowledgment of execution by Contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups: Group A Group B Chairman, President, or Vice-President Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CELIA A. BREWER, City Attorney BY: _____________________________ Deputy City Attorney DocuSign Envelope ID: A82A2B53-1CF5-4AF8-AB97-0D3B4E8CA962 PWM19-492UTIL Sewer Manhole No. 27B-4 Rehabilitation Cont. No. 55031 Page 5 of 6 City Attorney Approved 9/27/16 EXHIBIT A LISTING OF SUBCONTRACTORS BY GENERAL CONTRACTOR Set forth below is the full name and location of the place of business of each sub-contractor whom the Contractor proposes to subcontract portions of the Project in excess of one-half of one percent of the total bid, and the portion of the Project which will be done by each sub-contractor for each subcontract. NOTE: The Contractor understands that if it fails to specify a sub-contractor for any portion of the Project to be performed under the contract in excess of one-half of one percent of the bid, the contractor shall be deemed to have agreed to perform such portion, and that the Contractor shall not be permitted to sublet or subcontract that portion of the work, except in cases of public emergency or necessity, and then only after a finding, reduced in writing as a public record of the Awarding Authority, setting forth the facts constituting the emergency or necessity in accordance with the provisions of the Subletting and Subcontracting Fair Practices Act (Section 4100 et seq. of the California Public Contract Code). If no subcontractors are to be employed on the project, enter the word "NONE." SUBCONTRACTORS Portion of Project to be Subcontracted Business Name and Address DIR Registration No. License No., Classification & Expiration Date % of Total Contract N/A N/A N/A N/A N/A Total % Subcontracted: ______0%_________ The Contractor must perform no less than fifty percent (50%) of the work with its own forces DocuSign Envelope ID: A82A2B53-1CF5-4AF8-AB97-0D3B4E8CA962 PWM19-492UTIL Sewer Manhole No. 27B-4 Rehabilitation Cont. No. 55031 Page 6 of 6 City Attorney Approved 9/27/16 EXHIBIT B SEWER MANHOLE NO. 27B-4 REHABILITATION AT CANNON ROAD AND AVENIDA ENCINAS JOB QUOTATION Scope Includes: • City of Carlsbad Business License • City of Carlsbad Right of Way Permit • Traffic Control Plans • Mobilization of all Labor and Equipment • Prevailing Wages and Certified Payroll • Perform Confined Space Entry • All Crew Members Trained in Confined Space Entry, CPR, and First Aid • Installation of new frame and cover at MH #27B-4 (furnished by the City) • Surface prep per manufactures recommendations • Removal of existing manhole steps • Installation of internal by-pass tubes to control flow during bench reconstruction • Installation of #4 steel • Manhole benches to be rebuilt to allow for better flow • Resurface of manhole interior • Application of Sauereisen Epoxy for manhole rehabilitation • Application performed by trained applicators • Testing per manufacturers recommendations Exclusions: • Cal Trans Permit if required • Rail Road Permits if required ITEM NO. UNIT QTY DESCRIPTION PRICE 1 Job 1 Sewer manhole no. 27B-4 rehabilitation at Cannon Road and Avenida Encinas $7,950 TOTAL* $7,950 *Includes taxes, fees, expenses and all other costs. DocuSign Envelope ID: A82A2B53-1CF5-4AF8-AB97-0D3B4E8CA962 aDAE (MM/DDIYYYY)AC~RDCERTIFICATE OF LIABILITY INSURANCE 7 2/20/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACTNAME:Dealey, Renton & Associates PHON Ex:74478FAX P. 0.Box 0550 A Ex) 71-4276810A/C, No:714-427-6818P. 0.Box 0550E-MAILSanta Ana CA 92711-0550 ADDRESS: INSURER(S) AFFORDING COVERAGE NAIC It INSURER A: Wesco Insurance Company INSURED AYALAENGI INSURER B: Landmark American Insurance Company Aya a Engineering, Inc. 5753 E. Santa Ana Canyon #G-57 INSURER C: State Compensation Ins. Fund of CA 35076 Anaheim CA 92807 INSURER D : Tokio Marine Specialty Insurance INSURER E: ___________________________________________________________INSURER F:.______ COVERAGES CERTIFICATE NUMBER: 119345084 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL SUBR POLICY EFF POLICY EXP LTR -TYPE OF INSURANCE -INSD WVD POLICY NUMBER (M/DYY (M[D[YY LIMITS B X COMMERCIAL GENERAL LIABILITY Y Y LHA1 39860 218/2018 2/8/2019 EACH OCCURRENCE $ 1, 000,000W DAMAGE TO RENTEDCLAIMS-MADE LJ OCCUR PREMISES IEs occurrence) $ 50,000 __________________________MED EXP (Any one person) $5,000 ______________________PERSONAL & ADV INJURY $1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 POLICY PRO JECT LOC PRODUCTS -COMP/OP AGG $2,000,000 OTHER: Fx ET$ A AUTOMOBILE LIABILITY V Y WPP14083402 217/2018 2/8/2019 (COMBNE SINGLE LIMIT $ 0 ANY AUTO BODILY INJURY (Per person) $ X ALL OWNED SCHEDULED BDL NUY(e cietAUTOS AUTOS BDL NUY(e ciet HIX NON-OWNED PROPERZTDAMAGE $HRED AUTOS -AUTOS (Per cIden$ D X UMBRELLA LIAB X OCCUR PUB617403 2/8/2018 2/8/2019 EACH OCCURRENCE $8,000,000 EXCESS LIAB CLAIMS-MADE AGGREGATE $ 8,000,000 OttO RETENTION $ $ C WORKERS COMPENSATION Y 900495518 2/8/2018 2/8/2019 X PERUT ETHAND EMPLOYERS' LIABILITY Y/N ANY PROPRIETOR/PARTNEREXECUTIVE F1E.L. EACH ACCIDENT $ 1,000,000OFFICER/MEMBER EXCLUDED? [jJ] N/A (Mandatory in NH) E.L. DISEASE -EA EMPLOYEE $ 1,000,000 If ye , dscribe underDESRIPTION OF OPERATIONS below E.L. DISEASE -POLICY LIMIT $1,000,000 DESCRIPTION OF OPERATIONS/ILOCATIONS /VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Re: Agreement Number # PWM 17-84UTIL -Rehabilitate three sewer manholes.City of Carlsbad is named as Additional Insured as respects General Liability as required per written contract or agreement. Insurance coverage includes waiver of subrogation per the attached. CERTIFICATE HOLDER CANCELLATION 30 Days notice/ 10 Days Nonpay SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORETHE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Carlsbad/CMWD ACCORDANCE WITH THE POLICY PROVISIONS. C/o EXIGIS Insurance Compliance Services P.O. Box 4668 AUTHORIZED REPRESENTATIVEECM #35050 New York NY 10163-4668 @ 1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) The ACORD name and logo are registered marks of ACORD POLICY NUMBER: WPP1406834 02 COMMERCIAL AUTO CA990187 0715 This Endorsement Changes The Policy. Please Read It Carefully BUSINESS AUTO COVERAGE EXPANSION ENDORSEMENT This endorsement modifies insurance provided by the following: BUSINESS AUTO COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the COVERAGE FORM apply unless modified by the endorsement. A. Newly Acquired or Formed e. An "employee" of yours is an "insured" Organizations, Employee Hired Car while operating an "auto" hired or rented Liability and Blanket Additional Insured under a contract or agreement in that Status for Certain Entities. "employee's" name, with your Item 1. Who, is an Insured of Paragraph A. permission, while performing duties Coverage under SECTION I I-COVERED related to the conduct of your business. AUTOS LIABILITY COVERAGE is f. Any person or organization you are amended to add: required by written contract or d. Any organization you newly acquire or agreement to name as an additional form, other than a partnership, joint "insured", but only with respect to venture or limited liability company, and liability created in whole or in part by over which you maintain ownership of a such agreement. majority interest (greater than 50%), will B. Increase Of Loss Earnings Payment qualify as a Named Insured; however, Subpart (4) of a. Supplementary Payments (1) coverage under this provision is of Item 2. Coverage Extensions of afforded only until the 1801 day Paragraph A. Coverage under SECTION 11 after you acquire or form the -COVERED AUTOS LIABILITY organization or the end of the policy COVERAGE is amended to read: period, whichever is earlier; (4) We will pay reasonable expenses (1) coverage does not apply to "bodily incurred by the "insured" at our injury", "property damage" or request, including actual loss of"covered pollution cost or expense" earnings up to $1,000 per day that results from an "accident" which because of time off from work. occurred before you acquired or C. Fellow Employee Injured By Covered formed the organization; and Auto You Own Or Hire (3) coverage does not apply if there is Item 5. Fellow Employee of Paragraph B. other similar insurance available to Exclusions under SECTION IlI- COVEREDthat organization, or if similar AUTOS LIABILITY COVERAGE isinsurance would have been amended to add: available but for its termination or the exhaustion of its limits of This exclusion does not apply if the "bodily insurance, injury" results from the use of a covered Thisinsuancedoe notappl if"auto" you own or hire. Such coverage as Thisinsuancedoe notappl ifis afforded by this provision is excess overcoverage .for the newly acquired or ayohrcletbeisrne formed organization is excluded either ayohrcletbeisrne -by the provisions of this coverage form or by endorsement. CA990187 0715 Includes, Copyrighted Material of Insurance Services Offices, Inc. Page 1 of 5 Used with permission D. Limited Automatic Towing Coverage G. "Personal Effects" Coverage Item 2. Towing, of Paragraph A. Coverage, Item 4. Coverage Extensions of Paragraph underSECTION Ill-PHYSICAL DAMAGE A. Coverage, under SECTION Ill- COVERAGE is amended to read: PHYSICAL DAMAGE COVERAGE is amended to add:2. Towing "Personal Effects" Coverage We will pay for towing and labor costsWewlpaaculasvlefo"os"t each time that a covered "auto" is Wperwllpao tal csthe valsued for lss todisabled. All labor must be performed at "pcoern aufets" ofbe the "isrd whxileui the place of disablement of the coveredacoed"ut"sbctoamxim .,auto". limit of $2,500 per "loss", for that covered"auto" caused by the same "accident". Noa. The limit for towing and labor for deductible will apply to this coverage. each disablement is $500; H. "Downtime Loss" Coverage b. No deductible applies to this cover-Itm4CoeaeEenisf age. Paragraph A. Coverage, under SECTION E. Item 3. Glass Breakage -Hitting ABird Ill. PHYSICAL DAMAGE COVERAGE, is OrAnimal -Falling Objects or Missiles of amended to add: Paragraph A. Coverage under SECTION Ill"onimIosICvrg -PHYSICAL DAMAGE COVERAGE, is "onieLs"Cvrg amended to add: We will pay any resulting "downtime loss" Glass Repair Coverage expenses you sustain as a result of a We wll wivethe ompehenivecovered physical damage "loss" to a We wll wivethe ompehenivecovered "auto" up to a maximum of $100 deductible for Glass, if one is indicated on per day, for a maximum of 30 days for the your covered "auto", for glass repairs. We same physical damage "loss", subject to will repair at no cost to you, any glass that the following conditions: can be repaired without replacement, provided the "loss" arises from a covered a. We will provide "downtime loss" beginning Comprehensive "loss" to your "auto". on the 51h day after we have given you F. Icrese f TansprtaionExpnseour agreement to pay for repairs to a F. oInraseOg rnpranEpne covered "auto" and you have given the Coveragerepair facility your authorization to make Subpart a. Transportation Expenses of repairs; Item 4. Coverage Extensions of Paragraph b. Coverage for "downtime loss" expenses A. Coverage under SECTION Ill- will end when any of the following occur: PHYSICAL DAMAGE COVERAGE is amended to read: (1) You have a spare or reserve "auto" a. TansortaionExpesesavailable to you to continue youra. TansortaionExpesesoperations. We will pay up to $50 per day to a (2) You purchase a replacement "auto". maximum of $1,000 for temporary(3Reartoyucvrd"uo"he transportation expense incurred by you(3Reartoyucvrd"uo"he because of the total theft of a covered been completed by the repair facility "auto" of the private passenger type. and they determine the covered We will pay only for those covered "auto" is road-worthy. "autos" for which you carry either (4) You reach the 30 day maximum Comprehensive or Specified Causes of coverage. Loss Coverage or Theft Coverage. We will pay for temporary transportation expenses incurred during the period beginning 48 hours after the theft and ending, regardless of the policy's expiration, when the covered "auto" is returned to use or we pay for its "loss". CA990187 0715 Includes Copyrighted Material of Insurance Services Offices, Inc. Page 2 of 5 Used with permission 1Item 4. Coverage Extensions, of d. Contraband or propefty in the course Paragraph A. Coverage, under SECTION of illegal transportation or trade. Ill. PHYSICAL DAMAGE COVERAGE, is e. "Loss" caused by theft, unless there isamended to add: evidence of forced entry into the We will pay any resulting rental covered "auto" and a police report is reimbursement expenses incurred by you for filed. a rental of an "auto" because of "loss" to a K. Accidental Airbag Discharge Coverage covered "auto" up to a maximum of $100 per Ie ..o aarp .Ecuin ne day, for a maximum of 30 days for the same Ie ..o aarp .Ecuin ne physical damage "loss", subject to the SECTION Ill-PHYSICAL DAMAGE following conditions: COVERAGE is amended to read: a. We will provide rental reimbursement a. Wear and tear, freezing, mechanical incurred during the policy period or electrical breakdown. The beginning 24 hours after the "loss" and exclusion relating to mechanical ending, regardless of the policy break-down does not apply to the expiration, with the number of days accidental discharge of an air bag. reasonably required to repair or replace L. Loan or Lease Gap Coverage the covered "auto". If the "loss" is Paragraph C. Limit Of Insurance undercaused by iheft, this number of days is SECTION Ill-PHYSICAL DAMAGE the number of days it takes to locate the COVERAGE is amended to add: covered "auto" and return it to you or the number of days it takes for the claim to If a covered "auto" is owned or leased and be settled, whichever comes first. if we provide Physical Damage Coverage b. Or pymet islimtedto ncesaryandon it, we will pay, in the event of a covered bacOul payensis limited. eesr n total "loss", any unpaid amount due on the actul epenes icuredlease or loan for a covered "auto", less: c. This coverage does not apply while a. The amount paid under the Physical there are spare or reserve "autos" Damage Coverage Section of theavailable to you for your operations, policy; and d. If a "loss" results from the total theft of a b. Any:covered "auto" of the private passenger()Ovrulesoroa type, we will pay under this coverage(1Ovrulesoroa only that amount of your rental payments including penalties, reimbursement expenses which is not interest or other charges already provided for under the Physical resulting from overdue Damage Coverage Extension. payments at the time of the J. "Personal Effects" Exclusion"ls; Paragraph B. Exclusions under SECTION(2Fiaclpeltsimod111-HYSIAL DMAG COVRAGE isunder a lease for excessive use, Ill-P YSICA DA AG CO ER GE:i abnormal wear and tear or high amendd toadd:mileage; "Personal Effects" Exclusion (3) Costs for extended warranties, We will not pay for "loss" to "personal Credit Life Insurance, Health, effects" of any of the following: Accident or Disability Insurance a. Accounts, bills, currency, deeds, purchased with the loan or evidence of debt, money, notes, lease; securities or commercial paper or (4) Security deposits not refunded other documents of value. by the lessor; and b. Bullion, gold, silver, platinum, or other (5) Carry-over balances from precious alloys or metals; furs or fur previous loans or leases garments; jewelry; watches; precious or semi-precious stones. c. Paintings, statuary and other works of art. CA990187 0715 Includes Copyrighted Material of Insurance Services Offices, Inc. Page 3 of 5 Used with permission M. Aggregate Deductible (3) An "executive officer" or director, if Paragraph D. Deductible underSECTION' you are a corporation; II- PHYSICAL DAMAGE COVERAGE is (4) A manager or member, if you are a amended to add: limited liability company; Regardless of the number of covered (5) Your insurance manager; or "autos" involved in the same "loss", only ()Yu ea ersnaieone deductible will apply to that "loss". If ()Yu ea ersnaie the deductible amounts vary by "autos", P. Waiver Of Subrogation For Auto Liability then only the highest applicable deductible Losses Assumed Under Insured Contract will apply to that "loss". Item 5. Transfer Of Rights Of Recovery N. Diminishing Deductible Against Others To Us of Paragraph A. Loss Conditions under SECTION IV -Paragraph D. Deductible underSECTION BUSINESS AUTO CONDITIONS is II- PHYSICAL DAMAGE COVERAGE is amended to read: amended to add: Any deductible will be reduced by the5.TaseofRgtofecvr percentage indicated below on the first Against Others To Us "loss" reported during the corresponding If any person or organization to or for policy period: whom we make payments under this Coverage Form has rights to recover damages from another, those rights are Loss Free Policy Periods Deductible transferred to us. That person or With the Expansion Reduction on the organization must do everything Endorsement first "loss" necessary to secure our rights and must 1 0% do nothing after an "accident" or "loss" 2 25% to impair them. However, if the insured has waived those rights to recover 3___________ 50% through a written contract, we will waive 4 75% any right to recovery we may have 5 100% under this Coverage Form. If we pay a Physical Damage "loss" during Q. Insurance is Primary and the policy period under any BUSINESS Noncontributory AUTO COVERAGE FORM you have with Subpart a.oflItem 5.Other Insurance of us, your deductible stated in the Paragraph B. General Conditions under Declarations page of each such SECTION FV-BUSINESS AUTO COVERAGE FORM will not be reduced on CONDITIONS is amended to read: any subsequent claims during the remainder a hsisrnei rmr nof your policy period and your deductible noncontributory, as respects any otherreduction will revert back to 0% for each insurance, if required in a written such COVERAGE FORM if coverage is contract with you.renewed. 1 .nowldge f Los an Notce T UsR. Other Insurance -Hired Auto Physical 1 -Knolede o Los ad Ntic ToUsDamage Subsection a. of Item 2. Duties In the Event Subpart b. of Item 5..Other Insurance ofof Accident, Claim, Suit or Loss of Paragraph B. General Conditions underParagraph A. Loss Conditions under SECTION IV-BUSINESS AUTO SECTION I -- BUSINESS AUTO CONDITIONS is amended to read:CONDITIONS is amended to add: Howeerpropt otie ofthe"acidet",b. For Hired Auto Physical Damage claim, "suit" or "loss" to us or our Cvrgtefloigaedee authorized representative only applies to be covered "autos" you own: after the "accident", claim, "suit" or "loss" is (1) Any covered "auto" you lease, known to: hire, rent or borrow; and (1) You, if you are an individual; (2) A partner, if you are a partnership; CA990187 0715 Includes Copyrighted Material of Insurance Services Offices, Inc. Page 4 of 5 Used with permission (2) Any covered "auto" hired or rented by your "employee" under a contract in that individual"employee's" name, with your permission, while performing duties related to the conduct of your business. However, any "auto" that is leased, hired, rented or borrowed with a driver is not a covered "auto". S. Unintentional Failure To Disclose Hazards Paragraph B. General Conditions under SECTION IV- BUSINESS AUTO CONDI- TIONS is amended to add: 9. Your failure to disclose all hazards existing as of the inception date of this policy shall not prejudice the coverage afforded by this policy, provided that such failure to disclose all hazards is not intentional. However, you must report such previously undisclosed hazards to us as soon as practicable after its discovery. T. Additional Definition SECTION V -DEFINITIONS isamendedto add: "Personal effects" means personal property owned by the "insured". "Downtime loss!' means actual loss of "business income" for the period of time that a covered "auto": 1. Is out of service for repair or replacement as a result of a covered physical damage "loss" and 2. Is in the custody of a repair facility if not a total "loss". "Business Income" means: 1. Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred; and 2. Continuing normal operating expenses incurred, including payroll. In this endorsement, Headings and iles.....are inserted solely for the convenience and ease of reference. They do not affect the coverage provided by this endorsement, nor do they constitute any part of the terms and conditions of this endorsement. All other policy wording not specifically changed, modified, or replaced by this endorsement wordina remains in effect. I CA990187 0715. Includes Copyrighted Material of Insurance Services Offices, Inc. Page 5 of 5 Used with permission LANDMARK AMERICAN INSURANCE COMPANY This Endorsement Changes The Policy. Please Read It Carefully. ADDITIONAL INSURED BLANKET- PRIMARYAND YOU RWORK This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM SCHEDULE Name of Person or Organization: Any person or organization to whom or to which you are obligated by virtue of a written contract or by the issuance or existence of a written permit, to provide insurance such as is afforded by this policy. A. SECTION 11 -WHO IS AN INSURED is amended to include as an additional insured the person(s) or organization(s) shown in the SCHEDULE, but only with respect to liability for "bodily injury', 'property damage" or "personal and advertising injury" caused, in whole or in part, by: 1. Your acts or omissions; or 2. The acts or omissions of those acting on your behalf; in the performance of your ongoing operations; and/or "your work" defined for the additional insured(s) designated above included in the "prod ucts-completed operations hazard". B. If you are required by a written contract to provide primary insurance, this policy shall be primary and SECTION IV- COMMERCIAL GENERAL LIABILITY CONDITIONS, 4. Other Insurance does not apply, but only with respect to coverage provided by this policy. This endorsement effective 2/8/2018 forms part of Policy Number LHA139260 issued to AYALA ENGINEERING by Landmark American Insurance Company RSG 15017 1207 Includes copyrighted material of Insurance Services Office, Inc. 1984 (1185) with its permission LANDMARK AMERICAN INSURANCE COMPANY This Endorsement Changes The Policy. Please Read It Carefully. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM PRODUCTSICOMPLETED OPERATIONS LIABILITY COVERAGE FORM SCHEDULE Name of Person or Organization: Any Person or Organization As Required By Written Contract The following is added to SECTION IV -CONDITIONS, 8. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US: We waive any right of recovery we may have against the person or organization shown in the SCHEDULE above because of payment we make for injury or damage arising out of your ongoing operations, "your product" or "your work" done under a written contract with that person or organization and included in the "prod uct-completed operations hazard". This waiver applies only to the person or organization shown in the SCHEDULE above. This endorsement effective 2/8/2018 forms part of Policy Number LHA139260 issued to AYALA ENGINEERING by Landmark American Insurance Company RSG 14048 1008 Includes copyrighted material of Insurance-Services Office, Inc. 1992 with its permission.- ENDORSEMENT AGREEMENT WAIVER OF SUBROGATION REP DI BLANKET BASIS 9004955-18 RENEA NA EA HOME OFFICE 5-72-51-30 SAN FRANCISCO EFFECTIVE FEBRUARY 8, 2018 AT 12.01 A.M. PAGE 1 OF 1AND EXPIRING FEBRUARY 8, 2019 AT 12.01 A.M.ALL EFFECTIVE DATES AREAT 12:01 AM PACIFIC STANDARD TIME OR THE TIME INDICATED AT PACIFIC STANDARD TIME AYALA ENGINEERING 5753 E. SANTA ANA CANYON #G-571 ANAHEIM, CA 92807 WE HAVE THE RIGHT TO RECOVER OUR PAYMENTS FROM ANYONE LIABLE FOR AN INJURY COVERED BY THIS POLICY. WE WILL NOT ENFORCE O1UR RIGHT AGAINST THE PERSON OR ORGANIZATION NAMED IN THE SCHEDULE. THIS AGREEMENT APPLIES ONLY TO THE EXTENT THAT YOU PERFORM WORK UNDER A WRITTEN CONTRACT THAT REQUIRES YOU TO OBTAIN THIS AGREEMENT FROM US. THE ADDITIONAL PREMIUM FOR THIS ENDORSEMENT SHALL BE 2.00t OF THE TOTAL POLICY PREMIUM. SCHEDULE PERSON OR ORGANIZATION JOB DESCRIPTION ANY PERSON OR ORGANIZATION BLANKET WAIVER OF FOR WHOM THE NAMED INSURED SUBROGATION HAS AGREED B3Y WRITTEN CONTRACT TO FURNISH THIS WAIVER NOTHING IN THIS ENDORSEMENT CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF THE TERMS, CONDITIONS, AGREEMENTS, OR LIMITATIONS OF THIS POLICY OTHER THAN AS STATED. NOTHING ELSEWHERE IN THIS POLICY SHALL BEHELD TO VARY, ALTER, WAIVE OR LIMIT THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THIS ENDORSEMENT. - COUNTERSIGNED AND ISSUED AT SAN FRANCISCO.: ERAY1,21 AUTHORIZED RErPRESENT] IVE PRESIDENT AND CEO 2572SCIF FORM 10217 (REV.7-2014 OLD DP 217