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HomeMy WebLinkAbout2001-03-20; City Council; 16112; Services For Encina Power Plant Air Pollution0 7 3-ao-01 AB# /b: //2 MTG. 3-13-01 DEPT. RM CITY OF CARLSBAD - AGENDA BILL TITLE: CONSULTING SERVICES RELATED TO DEPT HD. ENCINA POWER PLANT AIR POLLUTION CITY All-Y. @ J ISSUES CITY MGR. +L- RECOMMENDED ACTION: Adopt Resolution No. Z@‘*&’ approving an agreement with Powers Engineering for consulting services related to the Encina Power Plant air pollution issues. ITEM EXPLANATION In May of 1999, ownership of the Encina Power Plant was transferred from SDG&E to Cabrillo Power I LLC (Cabrillo). In June of 1999, Cabrillo submitted a “formal request” to the San Diego Air Pollution Control District (District) to revise District Rule 69, which governs air emissions for power plants. If Cabrillo’s request is granted, the Rule’s stringent air pollution reduction requirement will be replaced with a significantly less restrictive standard. In September 1999, while continuing to work with the District to relax Rule 69, Cabrillo applied for a variance to relax the Rule’s compliance schedule for the installation of air pollution control equipment at Encina. Rule 69: District Rule 69 requires that all boilers sold by SDG&E must not exceed a limit of emissions of pollution that is significantly lower than what was required of SDG&E. The deadline for meeting this new standard was January 1,200l. According to Bill Powers, P.E. of Powers Engineering, an air pollution control technology consultant, all the major California air pollution control districts with boilers like those at Encina require compliance with this same standard, and by approximately the same date. Compliance with the standard requires the installation of the pollution control technology known as SCR (Selective Catalytic Reduction). Under SDG&E ownership of Encina, Rule 69 required an annual cap on emissions of nitrogen oxides, or NOX, a major contributor to ozone formation on hot summer days. This means emissions could be high over certain periods of the year, such as the summer during “peak demand” for electricity, as long as they were lower at other times so the total annual cap was not exceeded. This standard relied on reduced power production to reduce plant emissions. The sale of Encina triggered the new standard for Cabrillo under Rule 69, which places a strict limit on emissions of NOx per hour of energy production. This standard results in the need for SCR, which results in significantly reduced emissions during peak periods, as well as during periods of reduced demand for electricity. According to Mr. Powers, under Rule 69 and the installation of SCR, emissions of NOx from Encina would be reduced by 7580% on days of peak production. Cabrillo is seeking revisions in Rule 69 to reduce its requirements to an annual NOX cap “to allow them to operate, essentially under the same emission reduction scenario that would have been allowed SDG&E had they retained ownership of the plant.” This would also mean that Cabrillo would not have to install the SCRs that would be necessary to comply with Rule 69. According to Mr. Powers, without SCR, emissions of NOx on peak energy production days are 4-5 times higher. PAGE TWO OF AB # /k/ //% Variance: To obtain the variance, Cabrillo argued that insufficient time was available to install the SCR that is necessary to meet the reduced pollution limit in Rule 69. Cabrillo also offered, in support of the variance, to reduce excess emissions to the maximum extent feasible by capping emissions of pollution at 419 tons per year beginning January 1,200l and continuing through the duration of the variance. In October of 1999, the variance was granted by the District Hearing Board. The variance was granted on the condition that SCR is phased in between February 2002 and July 2003, on the five boilers at the plant, and an emissions cap of 419 tons per year is not exceeded. This is a cap similar to what SDG&E had and was requested by Cabrillo on the assumption that it would not operate its older and more polluting boilers continuously. Since the granting of the variance, Cabrillo has continued to work with the District on revisions to Rule 69 that would eliminate the need for the SCR. Relaxation of Rule 69: The District’s formal process to change a rule includes a public workshop and public hearing before the County Air Pollution Control Hearing Board. Prior to initiating this process in response to Cabrillo’s request to revise Rule 69, the District held three “Interested Parties” meetings, one in each of the months of May, July and August of 2,000, to review and discuss the proposed revisions to relax the Rule. Participants included the City of Carlsbad, the Environmental Health Coalition, the American Lung Association, Cabrillo, the California Energy Commission, California Independent Systems Operator, and others. Prior to these meetings staff retained Bill Powers, P.E. to advise us on the air pollution issues associated with the Encina Power Plant. At the “Interested Parties” meetings Cabrillo maintained that power shortages will be exacerbated if their proposed revisions to Rule 69 are not adopted by the District, and the investment in SCR that is necessary to comply with the Rule is not warranted because it is not cost effective. However, Mr. Powers pointed out in these meetings that maintaining the existing requirement for emission reductions in Rule 69 and providing for potential power shortages are not mutually exclusive. A provision allowing for emergency measures can be added to Rule 69 while retaining the requirement that Cabrillo comply with the Rule’s existing provisions. Furthermore, after extensive research and analysis conducted by Mr. Powers, including in-depth meetings with the District and Cabrillo to discuss cost projections, he concluded that the SCR pollution control technology is cost effective. Staff has shared Mr. Powers’ analyses and conclusions with the District, and our concerns about air emissions from Encina and any further dilution of a regulation designed to improve air quality. Based on Mr. Powers’ work, the meetings of interested parties, and the fact that Cabrillo has already received additional time to comply with Rule 69 through the variance, staff has informed the District that we are not able to support Cabrillo’s proposed revisions to further relax Rule 69. As staff stated in a letter to the District last June, “we are concerned that the proposed PAGE THREE OF AB # //o,, 0/L/ revisions will have no other effect than to greatly increase emissions of NOX from Encina during periods of high electricity demand.” Many of the other interested parties have expressed concerns and reservations about the proposed revisions as well. To date, the District has not held additional meetings for interested parties or started the formal process for District action on Cabrillo’s request to revise Rule 69. Amendment to the Variance: Encina has been operating at a rate such that Cabrillo is now close to reaching the 419 tons per year emissions cap approved in the variance. As a result, on January 3 1,200 1, Cabrillo submitted an application for a variance amendment to allow them to exceed the cap through December 3 1,200l. Cabrillo estimates the emissions cap will be exceeded by 380 to 620 tons of pollution. On March 15,2001, the County Air Pollution Control Hearing Board will hold a public hearing on this application. While it is anticipated that this amendment will be granted to ensure Cabrillo’s ability to continue to operate the plant at full capacity, staff will attend the hearing and respectfully request that the Board require adequate mitigation measures. If Cabrillo had met the Rule 69 standard requiring the installation of SCR on all boilers by January 1,200l there would be no NOX cap and Cabrillo would not be going to the Hearing Board requesting relief from the cap. While both achieving a delay in the installation of SCR and working to have the SCR requirement removed from Rule 69, Cabrillo has reaped tremendous profits in a very short period of time due to the consistently high demand for power. To obtain the variance to Rule 69 Cabrillo argued for the annual emissions cap as part of its justification for receiving approval to postpone installation of SCR. Cabrillo received approval for the delay in compliance on the condition of abiding by the cap, and now, must ask to “take back” their commitment to do so. Requiring appropriate justification for the delay in compliance with Rule 69 is as relevant now as it was when the cap on emissions was a condition of approval. Requiring appropriate mitigation is an obligation to the community and an intrinsic part of variance protocol. Council Goals and Opposing Further Relaxation of Rule 69: The Council’s goals surrounding the Encina Power Plant property include: a balance between the uses of this site and the protection of the environment, elimination of blight, and uses more compatible with the needs for the community, i.e, enhancement of public access to and use of the coastline. Council’s interests in this property include minimizing industrial impacts to our natural resources. As long as this site is necessary to meet the region’s power needs, Council would like to see this plant replaced with a physically smaller and more aesthetically acceptable facility so a substantial portion of the property can be redeveloped with an alternative use. Council’s goals for this property are consistent with Rule 69, which was designed to reduce air pollution from Encina once transfer of ownership from SDG&E occurred, and thereby improve air quality. Cabrillo’s proposed revisions to Rule 69 are contradictory to Council goals for this property. The cap on emissions proposed by Cabrillo is much greater than is allowed under the PAGE FOUR OF Al3 # lb, U% Rule. Furthermore, the weakness of a cap as a pollution control device is clearly evident, as it assumes the plant will not be operated at full capacity. Since the District Hearing Board is about to hold a hearing on Cabrillo’s application to lift the cap, it is clear that this assumption is no longer valid, and the requirement for the pollution control technology, SCR, is even more important than ever to reduce NOX pollution fi-om this plant. As a result of Cabrillo’s variance allowing a delay of two and one-half years for full compliance, and the lifting of the cap in the variance that will be necessary to meet energy needs, Cabrillo may very well exceed the pollution levels from the plant that we experienced under SDG&E ownership. Cabrillo’s request to revise Rule 69 to relax its existing pollution reduction requirements remains under consideration by the District. If District staff determines that the proposed revisions should be considered, a process will be initiated that will include a public workshop and a public hearing before the District Board (Board of Supervisors). In support of Council goals staff will continue to oppose further relaxation of Rule 69. Consulting Services Last year, in preparation for the “Interested Parties” meetings, other opportunities for input in the District’s review process, and to adequately evaluate Cabrillo’s request for revisions to Rule 69, the air quality issues and implications for the community, proposals from several air quality consulting firms were requested and evaluated. Interviews were held and Powers Engineering was selected based on Mr. Powers’ expertise and experience, and strong recommendations from references. Two contracts for consulting services were executed for a combined total not to exceed $25,000. We are now nearing this dollar limit. Based on performance to date this firm is recommended for additional services not to exceed an additional $25,000. The agreement is for one year with the ability to extend it for one year, two additional times. Mr. Powers will be needed to represent the City at the March 15,200l District Hearing Board meeting, any future forums for discussions about revisions to relax Rule 69, and for assistance in the review and analysis of any additional proposals regarding Encina and air quality. FISCAL IMPACT The total cost of the agreement is up to $25,000. There are sufficient funds in the Administrative Services Miscellaneous Professional Services Account to cover this amount. EXHIBITS 1. City Council Resolution No. @Oa’-@ 2. Agreement with Powers Engineering /’ ‘:,,:A, 1 2 I 4 c c E 7 . 8 9 10 11 12 13 14 15 16 i7 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2001-81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, Ta CONTRACT FOR CONSULTING SERVICES RELATED TO ENCINA POWER PLANT AIR POLLUTION ISSUES WHEREAS, San Diego Air Pollution Control District (District) Rule 69 requires that by January 1,2001, all boilers sold by SDG&E must not exceed a limit of emissions of pollution that is significantly lower than what was required of SDG&E; and WHEREAS, Cabrillo Power I LLC (Cabrillo) submitted a “formal request” to the District to revise District Rule 69 and relax its emissions limit requirement, and this request is still pending formal action by the District; and WHEREAS, Cabrillo has received a variance to Rule 69 to relax the Rule’s zompliance schedule for Encina on the condition that an emissions cap of 419 tons per year is lot exceeded; and WHEREAS, Cabrillo has applied to the District for an amendment to the variance to exceed the emissions cap of 419 tons per year; and WHEREAS, on March 8,2001, the District will hold a public hearing on Zabrillo’s request to exceed the cap, and this meeting as well as other District forums on Rule 59 will provide opportunities to the City to voice concerns about any further relaxation of the Xule; and WHEREAS, opposition to fk-ther relaxation of Rule 69 is consistent with Jouncil goals surrounding the Encina Power Plant property; and WHEREAS, the services of an air pollution control technology consultant are leeded to evaluate proposals for revisions to Rule 69 and participate in District meetings .egarding the Rule; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, Powers Engineering is highly qualified and has provided excellent air pollution control technology consulting services to date. NOW, THEREFORE, be it resolved by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Council hereby authorizes the Mayor to execute an agreement with Powers Engineering for air pollution control technology consulting services. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City ’ Council of the City of Carlsbad on the 20th day of March 2001, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, and Nygaard. NOES: None. ABSENT: Council M r Finnila and H II ATTEST: File: Agenda Bill Air Pollution Controls-Encina-contact 3-13-01 formatted 3 rev AGREEMENT THIS AGREEMENT is made and entered into as of the 23rd day of March 1 corporation, hereinafter 2001, by and between the CITY OF CARLSBAD, a municipal referred to as “City”, and Powers Engineering, a sole proprietorship hereinafter referred to as “Contractor.” RECITALS City requires the services of an air pollution consultant to provide the necessary consulting services related to Encina Power Plant air pollution issues; and Contractor possesses the necessary skills and qualifications to provide the services required by the City; NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. CONTRACTOR’S OBLIGATIONS l Advise the City on Encina Power Plant emissions and regulatory compliance, including any potential changes to regulations that may impact the City; l Advise the City on arenas for action and/or participation, including but not limited to federal, state and regulatory and policy making processes, and agencies and groups with which to work cooperatively on common goals; l Attend and represent the City at San Diego County Air Pollution Control District (District) hearings and Board meetings on issues pertinent to emissions from the Encina Power Plant: -1 - rev. 4/24/00 l Attend staff and City Council meetings as necessary; and l Provide written reports as necessary. 2. CITY OBLIGATIONS The City shall provide staff assistance and necessary documents. The City shall review Contractors work product and either provide approval for proceeding to the next assignment or provide Contractor with specific changes or alternatives required to complete the assignment. 3. PROGRESS AND COMPLETION The work under this contract will begin within one (1) day after receipt of notification to proceed by the City and be completed within one year of that date. Extensions of time may be granted if requested by the Contractor and agreed to in writing by the Risk Manager. The Risk Manager will give allowance for documented and substantiated unforeseeable and unavoidable delays not caused by a lack of foresight on the part of the Contractor, or delays caused by City inaction or other agencies’ lack of timely action. 4. FEES TO BE PAID TO CONTRACTOR The total fee payable for the services to be performed shall not exceed $25,000.00. N o other compensation for services will be allowed except those items covered by supplemental agreements per Paragraph 8, “Changes in Work.” The City reserves the right to withhold a ten percent (10%) retention until the project has been accepted by the City. Incremental payments, if applicable, should be made as outlined in attached Exhibit “A.” -2 - rev. 4/24/00 5. DURATION OF CONTRACT This agreement shall extend for a period of one year from date thereof. The contract may be extended by the City Manager for two additional one (1) year periods or parts thereof, based upon a review of satisfactory performance and the City’s needs. The parties shall prepare extensions in writing indicating effective date and length of the extended contract. 6. PAYMENT OF FEES Payment of approved items on the invoice shall be mailed to the Contractor within 30 days of receipt of the invoice. 7. CHANGES IN WORK If, in the course of the contract, changes seem merited by the Contractor or the City, and informal consultations with the other party indicate that a change in the conditions of the contract is warranted, the Contractor or the City may request a change in contract. Such changes shall be processed by the City in the following manner: A letter outlining the required changes shall be forwarded to the City by Contractor to inform them of the proposed changes along with a statement of estimated changes in charges or time schedule. A Standard Amendment to Agreement shall be prepared by the City and approved by the City according to the procedures described in Carlsbad Municipal Code Section 3.28.172. Such Amendment to Agreement shall not render ineffective or invalidate unaffected portions of the agreement. 6. COVENANTS AGAINST CONTINGENT FEES The Contractor warrants that their firm has not employed or retained any company or person, other than a bona fide employee working for the Contractor, to rev. 4/24/00 -3 - solicit or secure this agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this agreement. For breach or violation of this warranty, the City shall have the right to annul this agreement without liability, or, in its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fees, gift, or contingent fee. 9. ANTI-DISCRIMINATION AND ANTI-HARASSMENT CLAUSE The Contractor shall comply with all applicable state and federal laws and regulations prohibiting discrimination and harassment. 10. TERMINATION OF CONTRACT In the event of the Contractor’s failure to prosecute, deliver, or perform the work as provided for in this contract, the City Manager may terminate this contract for nonperformance by notifying the Contractor by certified mail of the termination of the Contractor. The Contractor, thereupon, has five (5) working days to deliver said documents owned by the City and all work in progress to the Risk Manager. The Risk Manager shall make a determination of fact based upon the documents delivered to City of the percentage of work which the Contractor has performed which is usable and of worth to the City in having the contract completed. Based upon that finding as reported to the City Manager, the Manager shall determine the final payment of the contract. This agreement may be terminated by either party upon tendering thirty (30) days written notice to the other party. In the event of such suspension or termination, rev. 4/24/00 -4 - upon request of the City, the Contractor shall assemble the work product and put same in order for proper filing and closing and deliver said product to City. In the event of termination, the Contractor shall be paid for work performed to the termination date; however, the total shall not exceed the lump sum fee payable under paragraph 4. The City Manager shall make the final determination as to the portions of tasks completed and the compensation to be made. 11. CLAIMS AND LAWSUITS The Contractor 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. The Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and the Contractor may be subject to criminal prosecution. The 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 information. If the City of Carlsbad seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney’s fees. The Contractor acknowledges that the filing of a false claim may subject the Contractor to an administrative debarment proceeding wherein the Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five years. The Contractor acknowledges debarment by another jurisdiction is grounds for the City of Carlsbad to disqualify the Contractor from the selection process. JVff (Initial) (Initial) -5 - rev. 4/24/00 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. BP (Initial) (Initial) 12. 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. 13. STATUS OF THE CONTRACTOR The Contractor shall perform the services provided for herein in Contractor’s own way as an independent Contractor and in pursuit of Contractor’s independent calling, and not as an employee of the City. Contractor shall be under control of the City only as to the result to be accomplished, but shall consult with the City as provided for in the request for proposal. The persons used by the Contractor to provide services under this agreement shall not be considered employees of the City for any purposes whatsoever. The Contractor is an independent Contractor of the City. The payment made to the Contractor pursuant to the contract shall be the full and complete compensation to which the Contractor is entitled. The City shall not make any federal or state tax withholdings on behalf of the Contractor or its employees or subcontractors. The City shall not be required to pay any workers’ compensation insurance or unemployment contributions on behalf of the Contractor or its employees or subcontractors. The Contractor agrees to indemnify the City within 30 days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers’ compensation payment which the City may be required to make on behalf of the -6 - rev. 4/24/00 Contractor or any employee or subcontractor of the Contractor for work done under this agreement or such indemnification amount may be deducted by the City from any balance owing to the Contractor. The Contractor shall be aware of the requirements of the Immigration Reform and Control Act of 1986 and shall comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and Consultants that are included in this agreement. 14. CONFORMITY TO LEGAL REQUIREMENTS The Contractor shall cause all drawings and specifications to conform to all applicable requirements of law: federal, state and local. Contractor shall provide all necessary supporting documents, to be filed with any agencies whose approval is necessary. The City will provide copies of the approved plans to any other agencies. 15. OWNERSHIP OF DOCUMENTS All plans, studies, sketches, drawings, reports, and specifications as herein required are the property of the City, whether the work for which they are made be executed or not. In the event this contract is terminated, all documents, plans, specifications, drawings, reports, and studies shall be delivered forthwith to the City. Contractor shall have the right to make one (1) copy of the plans for its records. 16. REPRODUCTION RIGHTS The Contractor agrees that all copyrights which arise from creation of the work pursuant to this contract shall be vested in City and hereby agrees to relinquish all claims to such copyrights in favor of City. -7 - rev. 4/24/00 17. HOLD HARMLESS AGREEMENT Contractor agrees to indemnify and hold harmless the City of Carlsbad and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused by any willful misconduct, or negligent act, or omission of the contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. 18. ASSIGNMENT OF CONTRACT The Contractor shall not assign this contract or any part thereof or any monies due thereunder without the prior written consent of the City. 19. SUBCONTRACTING If the Contractor shall subcontract any of the work to be performed under this contract by the Contractor, Contractor shall be fully responsible to the City for the acts and omissions of Contractor’s subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this contract shall create any contractual relationship between any subcontractor of Contractor and the City. The Contractor shall bind every subcontractor and every subcontractor of a subcontractor by the terms of this contract applicable to Contractor’s work unless specifically noted to the contrary in the subcontract in question approved in writing by the City. -8 - rev. 4/24/00 20. PROHIBITED INTEREST No official of the City who is authorized in such capacity on behalf of the City to negotiate, make, accept, or approve, or take part in negotiating, making, accepting, or approving of this agreement, shall become directly or indirectly interested personally in this contract or in any part thereof. No officer or employee of the City who is authorized in such capacity and on behalf of the City to exercise any executive, supervisory, or similar functions in connection with the performance of this contract shall become directly or indirectly interested personally in this contract or any part thereof. 21. VERBAL AGREEMENT OR CONVERSATION No verbal agreement or conversation with any officer, agent, or employee of the City, either before, during or after the execution of this contract, shall affect or modify any of the terms or obligations herein contained nor entitle the Contractor to any additional payment whatsoever under the terms of this contract. 22. SUCCESSORS OR ASSIGNS Subject to the provisions of Paragraph 18, “Hold Harmless Agreement,” all terms, conditions, and provisions hereof shall inure to and shall bind each of the parties hereto, and each of their respective heirs, executors, administrators, successors, and assigns. 23. EFFECTIVE DATE This agreement shall be effective on and from the day and year first written above. -9 - rev. 4/24/00 24. CONFLICT OF INTEREST The Contractor shall file a conflict of interest statement with the City Clerk in accordance with the requirements of the City’s conflict of interest code incorporating Fair Political Practices Commission Regulation 18700 as it defines A consultant. The disclosure category shall be categories 1, 2, 3 and 4. 25. INSURANCE The Contractor shall obtain and maintain for the duration of the contract and any and all amendments insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. Said insurance shall be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best’s Key Rating of not less than “A-Y” and shall meet the City’s policy for insurance as stated in Resolution No. 91-403. A. Coverages and Limits. Contractor shall maintain the types of coverages and minimum limits indicated herein, unless a lower amount is approved by the City Attorney or City Manager: 1. Comprehensive General Liability Insurance. $1 ,OOO,OOO combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits shall apply separately to the work under this contract or the general aggregate shall be twice the required per occurrence limit. -10 - rev. 4/24/00 2. Automobile Liability (if the use of an automobile is involved for Contractor’s work for the City). $1 ,OOO,OOO combined single-limit per accident for bodily injury and property damage. 3. Workers’ Compensation and Employer’s Liability. Workers’ Compensation limits as required by the Labor Code of the State of California and Employer’s Liability limits of $1 ,OOO,OOO per accident for bodily injury. 4. Professional Liability. Errors and omissions liability appropriate to the contractor’s profession with limits of not less than $1,000,000 per claim. Coverage shall be maintained for a period of five years following the date of completion of the work. B. Additional Provisions. Contractor shall ensure that the policies of insurance required under this agreement contain, or are endorsed to contain, the following provisions. 1. The City shall be named as an additional insured on all policies excluding Workers’ Compensation and Professional Liability. 2. The Contractor shall furnish certificates of insurance to the City before commencement of work. 3. The Contractor shall obtain occurrence coverage, excluding Professional Liability which shall be written as claims-made coverage. 4. This insurance shall be in force during the life of the agreement and any extension thereof and shall not be canceled without 30 days prior written notice to the City sent by certified mail. rev. 4/24/00 -11 - 5. If the Contractor fails to maintain any of the insurance coverages required herein, then the City will have the option to declare the Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order that the required coverages may be maintained. The Contractor is responsible for any payments made by the City to obtain or maintain such insurance and the City may collect the same from the Contractor or deduct the amount paid from any sums due the Contractor under this agreement. 26. RESPONSIBLE PARTIES The name of the persons who are authorized to give written notices or to receive written notice on behalf of the City and on behalf of the Contractor in connection with For Contractor: the foregoing are as follows: For City: Title Name Address Title Name Address Engineer/License Number: 27. BUSINESS LICENSE Risk Manager Erin K. Letsch 1635 Faradav Ave. Carlsbad. CA 92008 Principal, Powers Enaineerinn Bill Powers, P. E. 4452 Park Blvd., Suite 209 San Dieno. CA 92 116 M24518 Contractor shall obtain and maintain a City of Carlsbad Business License for the duration of the contract. -12 - rev. 4/24/00 28. ENTIRE AGREEMENT This agreement, together with any other written document referred to or contemplated herein, along with the purchase order for this contract and its provisions, embody the entire agreement and understanding between the parties relating to the subject matter hereof. In case of conflict, the terms of the agreement supersede the purchase order. Neither this agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. Executed by Contractor this CONTRACTOR: &Y 2$%v&& / 7?tc (name of Contractor) ’ CITY OF CA By: 7 c3745ri; &G~M~~w..~C (sign here) 8 I& &&?s, 26 . Pz/JYc/P4L~ (print name/title) ’ / ATTEST. n (Proper notarial acknowledgment of execution by Contrac$r must be attached. Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant treasurer must sign for corporations. Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.) APPROVED AS TO FORM: RONALD R. BALL, City Attorney BY: &+&$Z& wm Deputy City Attorney rev. 4/24/00 -13 - State of California . f q C- &f proved to me on the basis of satisfactory evidence Place Notary Seal Above to be the personti whose name&$@ subscribed to instrument and acknowledged to me the same capacity(iw, an signature(don the entity upon behalf of which the person acted, executed the instrument. P OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacityties) Claimed by Signer Signer’s Name: q Individual 0 Corporate Officer - l-Me(s): 0 Partner - 0 Limited 0 General 0 Attorney in Fact 0 Trustee 0 Guardian or Conservator 0 Other: Signer Is Representing: m Top of thumb here 0 1997 National Notary Association * 9350 De Soto Ave., P.O. Box 2402 - Chatsworth. CA 91313.2402 Prod. No. 5907 Reorder: Call Toll-Free 1-600-876-6827