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HomeMy WebLinkAboutHinz Automation Inc; 2005-03-10;AMENDMENT NO. 2 TO AGREEMENT FOR INSTRUMENTATION AND CONTROL SERVICES FOR THE CARLSBAD WATER RECYCLING FACILITY, PROJECT NO. 36753 (HINZ AUTOMATION, INC.) day of March 10, 2065 (the “Agreement”) by and between the Carlsbad Municipal Water District, a Public Agency organized under the Municipal Water Act of 191 1, and a Subsidiary District of the City of Carlsbad, referred to as (IICMWDII), and Hinz Automation, Inc., a Colorado Corporation, (“Contractor”) (collectively, the “Parties”) for instrumentation and control services at the Carlsbad Water Recycling Facility. th This Amendment No. 2 is entered into and effective as of the 5muaiL.v , 200_b, amending the agreement dated RECITALS A. On August 1, 2005, the Parties executed Amendment No. 1 to the Agreement to provide start-up assistance and the design of a control system for the Recycled Water Pump Station located at the Carlsbad Water Recycling Facility; and B. The Parties desire to alter the Agreement’s scope of work to include additional control system programming at the Carlsbad Water Recycling Facility and Recycled Water Pump Station; and C. The Parties have negotiated and agreed to a supplemental scope of work and fee schedule, which is attached to and incorporated by this reference as Exhibit “A”, Scope of Services and Fee. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, CMW D and Contractor agree as follows: 1. In addition to those services contained in the Agreement, as may have been amended from time to time, Contractor will provide those services described in Exhibit “A”. 2. CMWD will pay Contractor for all work associated with those services described in Exhibit “A” on a time and materials basis not-to-exceed fifteen thousand eight hundred dollars ($1 5,800). Contractor will provide CMW D, on a monthly basis, copies of invoices sufficiently detailed to include hours performed, hourly rates, and related activities and costs for approval by CMWD. 3. Contractor will complete all work described in Exhibit “A by March 10,2007. 4. All other provisions of the Agreement, as may have been amended from time to time, will remain in full force and effect. 5. All requisite insurance policies to be maintained by Contractor pursuant to the Agreement, as may have been amended from time to time, will include coverage for this Amendment. General Counsel Approved Version #07.05.01 1 6. The individuals executing this Amendment 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 Amendment. CONTRACTOR HlNZ AUTOMATIONl INC., a Colorado Corporation (sign he re) r-rA&?k cc%??s , ARm MAh\A<%X MWL - ob\es LLiz * -t-l (print namehitle) (e-mail address) CARLSBAD MUNICIPAL WATER DISTRICT, a Public Agency organized under the Municipal Water Act of 191 1, and a Subsidiary District of the City of Carlsbad Byfi -- Eiee&snt, Executive Manager or designee ATTEST:_ (sign here) I (print nam e/ti tl e) r/ (e-mail address) dp2- #4.,>*. corn If required by CMWD, 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. Chairman, President, or Vice-president **Group B. Secretary, Assistant Secretary, Assistant Treasurer CFO or 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, General Counsel By: I ' _r DepWGeKl qunsel General Counsel Approved Version #07.05.01 2 EXHIBIT “A’ TASK Task 4.0 - Control System Modifications Modify the existing control system software at the Carlsbad Water Recycling Facility and the Recycled Water Pump Station. Software programming modifications are necessary to improve start-up of the CWRF after a prolonged shut down or after a diversion alarm. Provide additional programming at the RWPS to provide control of SCOPE OF SERVICES AND FEE FEE $1 5,800 a relief valve and monitoring of tank level at the Equalization Basin. TOTAL $1 5,800 General Counsel Approved Version # 07.05.01 3 AMENDMENT NO. 1 TO AGREEMENT FOR INSTRUMENTATION AND CONTROL SERVICES FOR THE CARLSBAD WATER RECYCLING FACILITY, PROJECT NO. 36753 (HINZ AUTOMATION, INC.) effective as of the 1.d day of , 2005-, amending the agreement dated the Carlsbad Municipal Water District, a Public Agency organized under the Municipal Water Act of 191 1, and a Subsidiary District of the City of Carlsbad, referred to as ("CMWD"), and Hinz Automation, Inc., a Colorado Corporation, ("Contractor") (collectively, the "Parties") for instrumentation and control services at the Carlsbad Water Recycling Facility. RECITALS A. The Parties desire to alter the Agreement's scope of work to include additional start-up assistance and the design of a control system for the Recycled Water Pump Station located at the Carlsbad Water Recycling Facility; and 6. The Parties have negotiated and agreed to a supplemental scope of work and fee schedule, which is attached to and incorporated by this reference as Exhibit "A", Scope of Services and Fee. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, CMWD and Contractor agree as follows: 1. In addition to those services contained in the Agreement, as may have been amended from time to time, Contractor Mill provide those services described in Exhibit "A. 2. CMWD will pay Contractor for all work associated with those services described in Exhibit "A on a time and materials basis not-to-exceed forty-six thousand two hundred ninety two dollars ($46,292). Contractor will provide CMWD, on a monthly basis, copies of invoices sufficiently detailed to include hours performed, hourly rates, and related activities and costs for approval by CMWD. 3. 4. Contractor will complete all work described in Exhibit "A by March 10,2007. All other provisions of the Agreement, as may have been amended from time to time, will remain in full force and effect. All requisite insurance policies to be maintained by Contractor pursuant to the Agreement, as may have been amended from time to time, will include coverage for this Amendment. 5. 1 General Counsel Approved Version #07.05.01 6. The individuals executing this Amendment 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 ofthis Amendment. CONTRACTOR CARLSBAD MUNICIPAL WATER HlNZ AUTOMATION, INC., KA L- i (print name/title) .sed.,, a4-e A#*. cbn (e-mail address) ATTEST: **By: LORRAINE M. W&D (sign here) Secretary (print name/title) (e-mail address) If required by CMWD, proper notarial acknowledgment of execution by contractor must be attached. If a CorDoration. Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-president **Group B. Secretary, Assistant Secretary, Assistant Treasurer CFO or Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowring the officer(s) signing to bind the corporation. APPROVED AS TO FORM: RONALD R. BALL, General Counsel By: fleputy Gheral ‘coqsel - 2 General Counsel Approved Version #07.05.01 EXHIBIT “A” SCOPE OF SERVICES AND FEE ~ TASK FEE $6,120 Task 1.03 - Additional Start-up Assistance Hinz will provide one control system engineer proficient in both the HMI and PLC applications for Plant Control System and instrumentation start-up support during the commissioning of the various systems of the plant. Hinz will provide additional start-up assistance to help resok issues caused by multiple construction contracts. $1 1,000 Task 2.01 -Analytical lnstlument Installation Hinz will provide an Instrument Technician to install instruments previously placed in storage to protect them while the plant was inoperable pending the completion of the Encina Equalization Basin Contract. Task 3.01 -Recycled Water Pump Station Temporaw Control Desian Prepare the design and implementation of a control system for the Recycled Water Pump Station (RWPS) located at the Carlsbad Water Recycling Facility (CWRF). Currently the system is local control only, requiring Carlsbad personnel to operate the station at the RWPS. The design will provide a control system which can be accessed through the CWRF control system or directly through a dedicated phone line to the operations center at the CitJs facility located at 5950 El Camino Real. $29,172 TOTAL I $46,292 3 General Counsel Approved Version # 07.05.01 3 AGREEMENT FOR INSTRUMENTATION AND CONTROL SERVICES FOR THE CARLSBAD WATER RECYCLING FACILITY, PROJECT NO. 36753 (HINZ AUTOMATION, INC.) THIS AGREEMENT is made and entered into as of the \o* day of mad-, , 2005, by and between the CARLSBAD MUNICIPAL WATER DISTRICT, a Public Agency organized under the Municipal Water Act of 1911, and a Subsidiary District of the City of Carlsbad, referred to as (IICMWDII), and HINZ AUTOMATION, INC., a Colorado corporation, ("Contractor"). RECITALS A. CMWD requires the professional services of a consultant engineer that is experienced in the design of instrumentation and control systems for water treatment faci I it ies. B. Contractor has the necessary experience in providing professional services and advice related to instrumentation hardware and software for process facilities. C. Selection of Contractor is expected to achieve the desired results in an expedited fashion. D. Contractor has submitted a proposal to CMWD and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, CMWD and Contractor agree as follows: 1. SCOPE OF WORK CMWD retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of two (2) years from the date first above written. The Executive Manager may amend the Agreement to extend it for one (1) additional one (1) year period. Extensions will be based upon a satisfactory review of Contractor's performance, CMWD needs, and appropriation of funds by the CMWD Board of Directors. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement. 1 4. Time is of the essence for each and every provision of this Agreement. TIME IS OF THE ESSENCE 5. COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term will be a not-to-exceed fee of thirty seven thousand eight hundred ninety dollars ($37,890) paid on a time and materials basis. No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. CMWD reserves the right to withhold a ten percent (10%) retention until CMWD has accepted the work and/or Services specified in Exhibit "A". Incremental payments, if applicable, should be made as outlined in attached Exhibit "A". 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent ,calling, and not as an employee of CMWD. Contractor will be under control of CMWD only as to the result to be accomplished, but will consult with CMWD as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of CMWD for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. CMWD will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. CMWD will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify CMWD and the City of Carlsbad within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which CMWD may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At CMWD's election, CMWD may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of CMWD. If Contractor subcontracts any of the Services, Contractor will be fully responsible to CMWD 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 Agreement will create any contractual relationship between any subcontractor of Contractor and CMWD. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by CMWD. 2 8. OTHER CONTRACTORS CMWD reserves the right to employ other Contractors in connection with the Services. 9. Contractor agrees to indemnify and hold harmless the City and its officers, officials, I N DE M N I FI C AT1 0 N 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 in whole or in part 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. The parties expressly agree that any payment, attorney's fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self- administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement 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 services by Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance will 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-:VI'. 10.1 Coveraaes and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless the General Counsel or Executive Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. CMWD, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. 10.1.1 Commercial General Liabilitv Insurance. $1,000,000 combined single- limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit. 10.1.2 Automobile Liability (if the use of an automobile is involved for Contractor's work for CMWD). $1,000,000 combined single-limit per accident for bodily injury and property damage. General Counsel Approved Version #04/02/02 3 10.1.3 Workers' Compensation and Emplover's Liabilitv. Workers' Compensation limits as required by the California Labor Code and Employer's Liability limits of $1,000,000 per accident for bodily injury. Workers' Compensation and Employer's Liability insurance will not be required if Contractor has no employees and provides, to CMWD's satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 1 0.2. Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 The CMWD and the City of Carlsbad will be named as an additional insured on General Liability. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 any extensions of it 10.3 Providinq Certificates of Insurance and Endorsements. Prior to CMWD's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to CMWD. This insurance will be in force during the life of the Agreement and .. .. k 22 xt. 10.4 Failure to Maintain Coveraqe. If Contractor fails to maintain any of these insurance coverages, then CMWD will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by CMWD to obtain or maintain insurance and CMWD may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 10.5 Submission of Insurance Policies. CMWD reserves the right to require, at anytime, complete and certified copies of any or all required insurance policies and endorsements. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 4 f General Counsel Approved Version #04/02/02 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of CMWD during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of CMWD. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to CMWD. Contractor will have the right to make one (1) copy of the work product for Contractor’s records. 14. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in .- - CMWD and contractor relinquishes all claims to the copyrights in favor of CMWD. 15. NOTICES The name of the persons who are authorized to give written notices or to receive written notice on behalf of CMWD and on behalf of Contractor under this Agreement. For CMW D: For Contractor: Name Terry L. Smith Name Scott Pickford Title Sr. Civil Engineer Title Manager of San Diego Operations Address 1635 Faraday Avenue Carlsbad, CA 92008 Phone No. (760) 602-2765 E-Mail Address scott.Dickford@usa.hinz.com Carlsbad Municipal Water District Address 1808 Aston Avenue, Suite 170 Carlsbad, CA 92008 Phone No. (760) 930-4000 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST CMWD will evaluate Contractor’s duties pursuant to this Agreement to determine whether disclosure under the Political Reform Act and CMWD’s Conflict of Interest Code is required of Contractor or any of Contractor’s employees, agents, or subcontractors. Should it be determined that disclosure is required, Contractor or Contractor’s affected employees, agents, or subcontractors will complete and file with the Secretary of the Board those schedules specified by CMWD and contained in the Statement of Economic Interests Form 700. Contractor, for Contractor and on behalf of Contractor's agents, employees, subcontractors and consultants warrants that by execution of this Agreement, that they have no interest, present or contemplated, in the projects affected by this Agreement. Contractor further warrants that neither Contractor, nor Contractor's agents, employees, subcontractors and consultants have any ancillary real property, business interests or income that will be affected by this Agreement or, alternatively, that Contractor will file with the CMWD an affidavit disclosing this interest. 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that the services required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or CMWD will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (1 0) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the Executive Manager. The Executive Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the Executive Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 6 General Counsel Approved Version #04/02/02 / 20. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, CMWD may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If CMWD decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, CMWD may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by CMWD and all work in progress to CMWD address contained in this Agreement. CMWD will make a'determination of fact based upon the work product delivered to CMWD and of the percentage of work that Contractor has performed which is usable and of worth to CMWD in having the Agreement completed. Based upon that finding CMWD will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of CMWD, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to CMWD. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. CMWD will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to 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, CMWD will 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 the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any agreement claim submitted to CMWD must be asserted as part of the agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to CMWD, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, 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 CMWD seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for CMWD to terminate this Agreement. General Counsel Approved Version #04/02/02 A .. 7 23. JURISDICTIONS AND VENUE Any action at law or in equity brought by either of the parties for the purpose of .. eniorcing a right or rights provided for by this Agreement. will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon CMWD and Contractor and their respective successors. Neither this Agreement or any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of CMWD, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. General Counsel Approved Version #04/02/02 8 26. 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 CARLSBAD MUNICIPAL WATER HlNZ AUTOMATION, INC., a Colorado corporation *Bv: d ( p r i n t namelt i t le) **By: mEST: (sign here) (print nameltitle) (e-mail address) If required by CMWD, 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. Chairman, President, or Vice-president **Group B. 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: RONALD R. BALL, General Counsel By: beputy Ge;er& Counsel - CALlFORNlA ALL=PURPOSE ACKNOWLEDGMENT State of Pi 1 i fntni a COUntyOf San Dieeo' G5.17, w &gs On personally appeared E personally known to me - OR -$z proved to me on the basis of satisfactory evidence to be the person(+ whose name(* is/= subscribed to the within instrument and ac- knowledged to me that hehh4hey executed the same in his/- 'r authorized capacity@+, and that by his/- signature#- on the instrument the person(& COMM. #1472608 or the entity upon behalf of which the person(+ acted, executed the instrument. WITNESS my hand and official seal. OATE maugn the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reamchment of th~s form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT a INDIVIDUAL E CORPORATE OWCER 4 NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: NUY ap PERSOWS aR ENTIIYIIESI SIGNER(S) OTHEFl THAN NAMED ABOVE 07993 NATIONAL NOTARY ASSOCIATION 9 8236 Rammot Avo. P 0 8cai 7184 -0gl p* cA 9r309-7'ar ~~ Hinz Automation lnc. 8920 Barrons Boulevard, Suite 107 Highlands Ranch, Colorado 80129 Phone: (303) 740-7555 www. hi nz.com Fax: (720) 348-9810 10 February 2005 Carlsbad Municipal Water District City Of Carlsbad Re: Signing Authorization To Whom It May Concern: Ed Grimm, President of Hinz Automation Inc. (a Colorado Corporation) is authorized to sign for the company and bind the corporation with respect to contracts with your organization. Regards, Darrell Hinz, P. Eng. Corporate Secretary cc: Ed Grimm, President of USA Operations File Project No. Internal Resolution of Corporate Secretary 100 (2).doc Updated: 10 February 2005 Page 1 Revision 1 .OO Exhibit “A” Carlsbad Municipal Water District Recycled Water Facility Proposal for Startup and Commissioning Hinz Project No. SAN05CRL005 Revision 5.00 16 Feb 2005 Hinz Automation Inc. 1808 Aston Avenue, Suite 170 Carlsbad, California 92008 Phone: (760) 930-4000 Fax: (760) 930-091 1 www.hinz.com This proposal contains confidential and proprietary information that remains the property of Hinz Automation Inc. It must not be disclosed to any individual or organization who is not a direct recipient or authorized evaluator without written permission. ~HINZ~ Proposal for Startup and Commissioning I Table of Contents 1. Proposal Background ..................................................................................................... I 2. Assumptions & Clarifications ......................................................................................... 1 3. Scope of Work ................................................................................................................. 2 3.1. Equipment ............................................................................................................ 2 3.2. Pre-commissioning Site Evaluation ... ................................................................. 2 3.3. Coordination with MF System Supplier .............................................................. 3 3.4. Analytical Instrument Calibration ....................................................................... 3 3.5. Start-up Assistance ............................................................................................. 3 3.6. Site Acceptance Testing (SAT) ........................................................................... 3 3.7. Training ................................................................................................................. 4 ... 4. Exclusions ....................................................................................................................... 4 5. Cost Estimate ................................................................................................................... 5 6. Conclusion ....................................................................................................................... 6 Appendix A - Cost Estimate Appendix B - Instrument List This proposal contains confidential and proprietary information that remains the prope disclosed to any individual or organization who is not a direct recipient or authorized eva3tor without written permission. of Hinz Automation Inc. It must not be Project No. SAN05CRL005 Updated: 16 Feb 2005 SAN05CRL005 scope of work 500.doc Page i Revision 5.00 IHINZJ Proposal for Startup and Commissioning 1. 2. Proposal Background This cost estimate and proposal is for the commissioning and start-up of the Plant Control System at the Carlsbad Recycled Water facility located in Carlsbad, California. Hinz Automation Inc. (Hinz) provided the Plant Control System hardware, programming and instrumentation during 2003 and early 2004. However, following facility construction and preliminary hardware checks, but prior to installation and commissioning of the Plant Control System developed by Hinz, the plant was mothballed for 12 months pending a coordinated start-up effort in parallel with the Encina Effluent Flow Equalization and Carlsbad WRF Joint Use facility. Due to the familiarity that Hinz has with the design and implementation of the Plant Control System, CMWD has requested that Hinz performs the commissioning and startup. Hinz welcomes this assignment, but on a time and expenses basis only, as there are many additional circumstances surrounding this project that are above and beyond the normal factors that affect the commissioning and start-up of a new facility. Factors such as: a. The facility has been dormant for 12 months, and the condition of the facility and systems have not been verified. b. The General and Electrical contractors are no longer at the job site, resulting in a shortage of personnel having familiarity with the mechanical and electrical systems installed. c. The majority of the principle team members are no longer available (U.S. Filter PM, Hinz PM, Carlsbad PM just to name a few). d. The completeness of the facility has yet to be verified. e. The operability of instrumentation (including calibration capacity) has yet to be verified. Assumptions & Clarifications The following assumptions and clarifications were used in preparing this proposal: a. Pricing supplied is an estimate only made in good faith without consideration for delays, technical difficulties, equipment problems or other unexpected circumstances. b. Mechanical and electrical equipment required for plant operation will be installed and fully functional at the time of Plant Control System commissioning. This proposal contains confidential and proprietary infonation that remains the property of Hinz Automation Inc. It must not be disclosed to any individual or organization who is not a direct recipient or authorized eval or without written permission. Y Project No. SAN05CRL005 Updated: 16 Feb 2005 SAN05CRL005 scope of work 500.doc Revision 5.00 Proposal for Startup and Commissioning 3. c. Coordination and scheduling of Plant Control System commissioning activities will be performed by CMWD. d. All equipment and materials have been provided under a previous contract. No additional equipment has been included in this proposal. e. The facility will be available to Hinz for commissioning and startup on a continuous basis, without interruption and delays for corrections to electrical, mechanical, hydraulic, or other systems. f. Instrumentation is installed and ready for calibration. g. Calibration chemicals in storage at the Hinz Carlsbad facility for the past 12 months remain fit for purpose, although this has not been verified at this time. Scope of Work The following describes the scope of work provided for under this proposal. 3.1. Equipment Plant Control System equipment to be commissioned by Hinz Automation under this proposal is as follows: a. PLC-2 - Plant Supervisory PLC Panel b. RIO-2 - Filter Feed Pump Controls RIO Panel c. HST-1 - File server/historian d. SVR-1 - Operator Workstation/Redundant Server 1 e. SVR-2 - Operator Workstation/Redundant Server 2 f. EWP-1 - Operator Workstation (Read Only, Encina WPCF) g. Instrumentation per the attached instrument list (Appendix B) 3.2. Pre-commissioning Site Evaluation The purpose of the pre-commissioning evaluation is to verify the integrity of the installed Plant Control System as delivered by Hinz Automation under the previous contract. The equipment covered by this evaluation includes the analyzers and instrumentation per the attached instrument list (Appendix B) in addition to control panels PLC-02 and RIO-02. This proposal contains confidential and proprietary information that disclosed to any individual or organization who is not a direct recipient Hinz Automation Inc. It must not be without written permission. Project No. SAN05CRL005 Updated: 16 Feb 2005 SAN05CRL005 scope of work 500.doc Page 2 Revision 5.00 Proposal for Startup and Commissioning Hinz will develop a pre-commissioning evaluation plan followed by a walk down of the site utilizing the procedures of the plan, resulting in the generation of a punch list of I&C related activities to be performed prior to start-up. Note that this proposal and related cost estimate does not include any time and materials that may be required to resolve any punch list activities discovered. Where applicable and as directed by CMWD, Hinz will develop and present additional cost estimates to resolve items detailed on the punch list. 3.3. 3.4. 3.5. 3.6. Coordination with MF System Supplier Establish and maintain line of communication with MF system supplier to ensure integration of MF and the Plant PLC-2 systems. This will commence during the planning phases and continue through the final commissioning and testing phases. Analytical Instrument Calibration Commission and calibrate the following analyzers: a. Low Range Turbidity (AIT-0804-1, AIT-0804-2, AIT-1005, AIT-0915) b. Surface Scatter Turbidity (AIT-1202, AIT-1204) c. pH Flow Through (AIT-1201, AIT-1203) d. Chlorine Residual (AIT-1004, AIT-1006, AIT-0904, AIT-0917) e. Conductivity (CIT-1003) These activities will be performed using the calibration materials supplied per the previous contract. Costs associated with additional materials needed to commission and calibrate the analyzers will be forwarded onto CMWD. Start-up Assistance Hinz will provide one control system engineer proficient in both the HMI and PLC applications for Plant Control System and instrumentation start-up support during the commissioning of the various systems of the plant. Site Acceptance Testing (SAT) Hinz will demonstrate the plant control system to CMWD and its representatives as outlined in the revised testing procedures and documents to be submitted to CMWD. This will include full I/O validation, PLC programming functionality, system communications and all HMI functionality (alarming, historization, report generation, etc.). This proposal contains confidential and proprietary information that remains the property of Hinz Automation Inc. It must not be disclosed to any individual or organization who is not a direct recipient or authorized Val or without written permission. IP Project No. SAN05CRL005 Updated: 16 Feb 2005 SAN05CRL005 scope of work 500.d~ Revision 5.00 Proposal for Startup and Commissioning Hinz will provide one control system engineer proficient in both the HMI and PLC applications to conduct the tests. CMWD will need to provide one maintenance personal or an electrician to assist Hinz during the SAT test. This person will be responsible for simulating process signals, operating plant equipment, powering up field devices, etc. as needed. 3.7. Training Site specific training will be provided to operation and maintenance personal covering the following topics: a. Instrument Training - Training on the calibration, maintenance and troubleshooting of provided instrumentation. b. Control System Maintenance Training - Training on troubleshooting and maintenance of PLC control system hardware. c. Operator Training - Instruction in the operational use of the control system to include; system navigation, process screens, security, reporting, etc. d. PLC/HMI Application Training - Includes instruction on the developed HMI and PLC applications with the focus being on the program organization and structure. Note, this part of the training is not intended to provide instruction on how to program PLCs or to configure the SCADA package. It is intended for personnel with previous PLC/HMI experience who will be responsible for maintaining the system after completion of the project. Training materials will be provided for each session as necessary. 4. Exclusions The following list of equipment, systems and services are not included in this proposal and scope of work: a. MF Supervisory PLC Panel b. MF Feed Pump Controls (CP-0901) c. MF Unit 2 (CP-0912) d. MF Unit 1 (CP-0912) e. MF Operator Workstation f. Recycled Water Pump Station Control system g. All instrumentation NOT included on attached Instrument List h. Installation, electrical modifications, mechanical modifications This proposal contains confidential and proprietary information that remains the property of Hinz Automation Inc. It must not be SAN05CRL005 scope of work 500.doc Revision 5.00 Project No. SAN05CRL005 Updated: 16 Feb 2005 disclosed to any individual or organization who is not a direct recipient or without written permission. Page 4 [HINZl Proposal for Startup and Commissioning i. Plant equipment operations j. k. As-built documentation Modification and testing of instrumentation, control system hardware and system programming not supplied by Hinz Automation under the previous contract Hinz has detailed the exclusion of the above items to ensure that the scope of this proposal is well understood by all parties. Although excluded at this time, Hinz is will be willing and available to assist CMWD with the startup and commissioning of many of these activities if requested. 5. Cost Estimate The tasks to be performed along with the estimated time to complete the tasks are detailed in the attached cost estimate (Appendix A). Work under this proposal is on a time and expenses basis, and the pricing in Appendix A is an estimate only. Hinz will continually track task progress against this estimate and will inform CMWD of any anticipated projected overruns. Any additional hours required to perform the specified tasks will be submitted to CMWD as a change order request. The decision to continue the work or consider alternative options will therefore remain with CMWD. Any additions to the scope of work will also be submitted to CMWD as a change order request. Approval of any change order by CMWD will be required prior to Hinz commencing or continuing the work task in question. Billings will occur every 2 weeks and will include man hour break downs indicating hours expended, resources utilized, and estimated percentage completion on a per task basis. Hinz will maintain an open line of communication with CMWD to discuss status of the work in progress, potential problems with scheduled work, changes in the estimated hours, and to coordinate up and coming tasks. This proposal contains confidential and proprietary information that remains the property of Hinz Automation Inc. It must not be disclosed to any individual or organization who is not a direct recipient or authorized evalu or without written permission. A2 Project No. SAN05CRL005 Updated: 16 Feb 2005 SAN05CRL005 scope of work 500.doc Page 5 Revision 5.00 Proposal for Startup and Commissioning 6. Conclusion We look forward to working directly with CMWD on this project. Please contact me at (760) 930-4000 or alternatively on my cell phone at (61 9) 925-0850 with any questions. Regards Kevin Pearson Project Manager This proposal contains confidential and proprietary information that remains the property of Hinz Automation Inc. It must not be disclosed to any individual or organization who is not a direct recipient or authorized eyaluafpr without written permission. Project No. SAN05CRLOO5 Updated: 16 Feb 2005 SAN05CRL005 scope of work 500.dm Page 6 Revision 5.00 Proposal for Startup and Commissioning Appendix A - Cost Estimate This proposal contains confidential and proprietary information that remains the property of Hinz Automation Inc. It must not be disclosed to any individual or organization who is not a direct recipient or authorized evaluator without written permission. a HINZ Hinz Estimate Item Man-hours Precommissioning Subtotal 80 Commissioning Subtotal 220 kd Carls bad cost $8,857 $23,35a Automation Inc. Cost Estimate Summary Hinz No. SAN05CRL005 Printed on 2/1/2005 at 11:40 AM bad Recycling Facility Estimate 3OO.xls Page 1 of6 Sheet: sum Hinz Automation Inc. Hinz No. SANOSCRL005 Carlsbad Recycling Facilitv - Start-up Date. 24-Jan-05 Carlsbad Precommissionins Subtotal arecommissionlng site evaluation 'recommissioning evalutation plan ;ite walk-thru ?valuation punch list 2oordination With MF system supplier 3gineering coordination with MF supplier Project Management - projects ubmittals - maintain budgeta nd accounting - schedule maintenance - projectr eporting and inmicing - semce ad-hoc enquiries months ofp roject = 2 projecth ours before PMAN = 64 projectm anagementl eve1 = 10 0% projectm anagementh ours = f clerical I accounting per month = ! clerical I accounting hours = 1( ProJect Engineering Man-hour Totals Printed on 2/112005 at 11:40 AM - 40 6 46 xpense Dlsbursements irline ar Rental otel leak 1-house expenses 10 - $4,880 $2,448 $1,313 $8.641 =I===- tripsat $600 daysat $75 daysat $140 daysat $40 at 2.5% $216 I Precommissioning Subtotal 1 $8,857 Total design man-hours 80 File:S AN05CRL005 Carlsbad Recycling Facility Estimate 300.~1~ Sheet: eng Page 2 of 6 lnIN3;1 Hinz Automation Inc. Carlsbad Carlsbad Recycling Facility - Start-up Hinz No. SAN05CRL005 Date: 24-Jan-05 Commissioning Services Analytical Instrument Calibration Low Range Turbidity E Surface Scatter Turbidity L pH Flow Through E (AIT-1201, -1203 Chlorine Residual I€ (AIT-1004, -1006, -0904, -0917) Conductivity (CIT-1003) L (AIT-0804-1, -0804-2, -1005, -0915) (AIT-1202, -1204) Analytical Instrument Calibration Expense Airline Mileage Hotel Meals In-house expenses Start-up Assistance (IO days) Chemical System Filter System MicroFiltration System RO system 13500, 3-2.05 Start-up Assistance Expense Disbursemer Airline Mileage Hotel Meals In-house expenses Site Acceptance Testing demonstrate 110, communications, alarms handling, HMI display functions. demonstrate system control functionality as described in specification 13550, appendix 1 Printed on 2/1/2005 at 1 1 :40 AM merit $0.41 2.5% $0.41 2.5% - 40 - $4,080 $1 02 $8,160 $204 $8,160 File: SAN05CRL005 Carlsbad Recyclinq Facilitv Estimate 300.d Hinz Automation Inc. Carls bad Carlsbad Recycling Facility - Start-up Hinz No. SAN05CRL005 24 Jan-05 Date: Commissioning Services Commissioning Expense Disbursements Airline Mileage Hotel Meals In-house expenses Project Management - project submittals - maintain budget and accounting - schedule maintenance - project reporting and invoicing - service ad-hoc enquiries months of project = project hours before PMAN = 200 project management level = 10 0% project management hours = 2C Commissioning Man-hour Totals Printed on 2/1/2005 at 11 :40 AM - $0.41 2.5% T $23,351 C omm iss ioni ng S u btota I Total commissioning man-hours $23,350 File: SAN05CRL Recycling Facility Estimate 300.xls Sheet: comm Page 4 of 6 Hinz Automation Inc. Training Expense Disbursements Airline Mileage Hotel Meals In-house expenses I , I. - project submittals - maintain budget and accounting - schedule maintenance - project reporting and invoicing - service ad-hoc enquiries months of prqect = project hours before PMAN = project management level = project management hours = clerical / accounting per month = clerical / accounting hours = 52 Carlsbad Him No. SAN05CRL005 Carlsbad Recycling Facility - Start-uP Date: 24-Jan-05 Training Instrument Training a Control System Maintenance e Operator Training 11 PLUHMIA pplication Training li Traininig material prep and coordination li System Specific Training Printed on 2/1/2005 at 11:40 AM $0.41 2.5% I $5,544 $13: File: SAN05CRL005 Carlsbad Recycling Facility Estimate 3OO.xls Sheet: train Page 5 of 6 Hinz Automation Inc. m 2005 Him USA Rate Structure Project 6 / Sr Prq Mgr $122.00 per hour Project 5 / Prq Mgr $111.00 per hour Project 4 $102.00 per hour Project 3 $92.00 per hour Project 2 $82.00 per hour Project 1 $71.00 per hour Senior CAD Desianer $71.00 per hour ______ CAD Designer $63.50 per hour CAD Tech $56.50 per hour Engineering Assistant $62.00 per hour Expenses 'ravel Expenses (Plane fares, Hotels, Meals, Rental vehicles, at cost tc.) dternate meal expenses in lieu ofp roviding meal receipts subject to client approval) $40.00 perday Automobile Rentals at cost Mileage for HlNZ vehicles $0.41 per mile External Services Courier charges to client locations at cost Bulk copying and drawing reproduction from external printing service. at cost In-House Expenses ncludes communications costs, photocopies, equipment isage, CDs and floppies, binders, incidental expenses, in- iouse drawing plots. labor ofi nvoiced 2.5% amount for Procurement Materials procured for the Client markup (or 15% firm quote) Pricing Notes: Rates assume that all contract work is on a time and material basis Rates are based on monthly invoicing of Engineering services, terms net 30 days. All applicable taxes are extra. Rates apply to work performed in 2005, and are subject to a rate increase on Jan 1, 2006 The liability ofH inz Automation Inc. is limited to the cost of re-engineering only. Hinz Automation Inc. Printed on 2/1/2005 at 11 140 AM ecycling Facility Estimate 300.~1~ Page 6 of 6 Sheet: rates IIII ~HINZ~ Proposal for Startup and Commissioning Appendix B - Instrument List This proposal contains confidential and proprietary information that remains the property of Hinz Automation Inc. It must not be disclosed to any individual or organization who is not a direct recipient or authorized evaluator without written permission. I Type I Tag I Range I Size I Manufacturer I Part # i \\Sanflkan 21311 projects\-proj2002U)O2AELl3 1 -- -I~-*. Paae 11 r Donna Harvev - Hinz Aareement --Sxexource Justification From: Terry Smith To: Harvey, Donna Date: 01/03/2005 10:29:24 AM Subject: Hinz Agreement - Sole Source Justification Hinz Automation was a subcontractor to PK Construction, the City's General Contractor, for the construction of the Carlsbad Water Recycling Facility (CWRF). Because the CWRF could not be started until the Encina Flow Equalization project was completed (scheduled for April 2005), the City requested a credit back from PK Construction and their subcontractors for the deletion of start-up services. Hinz provided a credit through a change order to the City for the deletion of final software programming and testing of the system software. A Notice of Completion for the project was filed in mid-2004. With the completion of the Encina project anticipated for April 2005, the City requires the services of an instrumentation and control engineering consultant to finalize the software programming and testing of the software that is necessary to operate the CWRF. Since Hinz is the original software designer, they will be able to finish this task more efficiently and at a lower cost than a new consultant. Hinz is also the subcontractor for the instrumentation and control on Encina's Flow Equalization Project. A new consultant would have to spend significantly more hours to get familiar with the very complicated control logic for operating the numerous pieces of mechanical equipment in the CWRF and Encina Flow Equalization project. For this reason, staff believes that a sole source contract to Hinz is in the best interest of the City. Terry L. Smith Senior Engineer City of Carlsbad - Public Works Engineering 1635 Faraday Avenue Carlsbad, CA 92008 tsm it 8 ci .carlsbad.ca. us (760) 602-2765