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HomeMy WebLinkAboutItem 12o - Design-Build Peck Well PFAS Treatment System STAFF REPORT PUBLIC WORKS SERVICES DEPARTMENT DATE: June 16, 2026 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Tiffany Lee, Interim Principal Civil Engineer SUBJECT: DESIGN-BUILD CONTRACT WITH PACIFIC HYDROTECH CORPORATION FOR THE PECK WELL PFAS TREATMENT SYSTEM PROJECT IN THE AMOUNT OF $3,204,400 CEQA: Exempt Recommendation: Approve SUMMARY The Fiscal Year 2024-25 Capital Improvement Program (“CIP”) Budget provides for the design and construction of a treatment system to address Per-and Polyfluoroalkyl Substances (“PFAS”) at Peck Well. To ensure the City is receiving the highest quality of service and most competitive pricing for the design-build services, the Public Works Services Department (“PWSD”) conducted a Request for Proposals (“RFP”). Based on the evaluated proposal, interview, and financial evaluation, it was determined that Pacific Hydrotech Corporation is a qualified and responsible firm to provide professional design-build services for the design and construction of the Peck Well PFAS Treatment System. It is recommended that the City Council approve, authorize, and direct the City Manager to execute a design-build contract with Pacific Hydrotech Corporation for the Peck Well PFAS Treatment System Project in the amount of $3,204,400, with a 10% contingency. BACKGROUND The US Environmental Protection Agency (“EPA”) describes PFAS as a group of man- made chemicals manufactured and used in a variety of industries. PFAS can be found Award Design-Build Peck Well PFAS Treatment System June 16, 2026 Page 2 of 4 in products such as food packaging as well as commercial and household products, which often end up in groundwater. These chemicals are toxic at relatively low concentrations, presenting a danger to both human health and the environment. On April 10, 2024, the EPA established legally enforceable Maximum Contaminant Levels (“MCLs”) for PFAS contaminants in drinking water. Public water systems are required to monitor the PFAS MCLs and conduct ongoing compliance monitoring. If monitoring shows that drinking water levels exceed these MCLs, public water systems must implement solutions that reduce PFAS by 2029. The PWSD regularly tests the drinking water from the supply wells to ensure its safety. Recent water quality sampling indicated that Peck Well had a PFAS level of 9.1 parts per trillion (“ppt”), which exceeded the Notification Level of 6.5 ppt. Peck Well was drilled in 1962 and has a pump capacity of approximately 3,600 gallons per minute. Peck Well is crucial to the City's water system because it supplies over 40% of the groundwater to Zone 4. Construction of a treatment system for Peck Well is urgent to prevent Peck Well from being shut down. To address the issue, funding for the design and construction of a water treatment system to treat PFAS at Peck Well was included in the FY 2024-25 Capital Improvement Program. To minimize costs and address the long lead-time for procuring the Ion Exchange (“IX”) Adsorption Systems, PWSD staff elected to purchase the IX adsorption treatment system separately and supply it to a contractor for installation under a separate contract. On December 2, 2025, the City Council approved a Professional Services Agreement with AqueoUSVETS LLC. for the purchase of IX adsorption treatment vessels. The next phase of this project will include the design and installation of the piping, valves, fittings, backwash tank, and concrete foundation pads. The contractor will also install the treatment vessels. As part of this contract, pavement improvements will be included and a 35-foot-wide automatic slide gate will be installed at the well site. DISCUSSION On April 13, 2026, a Notice Inviting Proposals for the Design-Build of the Peck Well PFAS Treatment System Project was published in accordance with City Council Resolution No. 7483, and proposal packages were distributed to firms that provide design-build services. One proposal was received on May 12, 2026. Award Design-Build Peck Well PFAS Treatment System June 16, 2026 Page 3 of 4 Rank Company Name Score Cost 1 Pacific Hydrotech Corporation 93.34% $ 3,204,400 * *The vendor’s original proposal fee was $3,304,400, City staff negotiated with them to reduce the cost. Staff contacted the companies that received proposal packages to inquire why they did not submit a proposal. The firms indicated that they chose not to pursue the project due to the requested timeframe and the contractual risk inherent to a design build project. Design-Build is a construction delivery method that provides a single point of contact for both the design and construction phases of a project. One entity holds single-source responsibility and contractual risk for every aspect of the project. Due to the nature of the process and the expertise in the type of work needed, there are not many firms that can complete this work. The one proposal received was evaluated based on the proposer’s qualifications, performance history, technical approach, understanding of the City’s needs, proposal cost, and design-build timeline. After careful review and consideration, it was determined that Pacific Hydrotech is suited for the Peck Well PFAS Treatment System Project based on their detailed proposal and demonstrated history with similar projects. Pacific Hydrotech Corporation has successfully completed comparable projects for the City of Arcadia (Live Oak Well TCE Treatment System), Monte Vista Water District, City of Needles, California American Water Company, Santa Clarita Valley Water Agency, Orange County Water District, and Golden State Water Company. Pacific Hydrotech Corporation’s original proposal fee was $3,304,400. Having determined that Pacific Hydrotech Corporation is the most qualified firm to complete the project, City staff negotiated with them to reduce the cost while ensuring the full scope of services would still be met. ENVIRONMENTAL ANALYSIS This project is categorically exempt as a Class 3, defined in Section 15303(d) of the California Environmental Quality Act (“CEQA”), which exempts projects consisting of the construction of new, small structures related to utility extensions. The addition of an IX treatment system to an existing potable water supply well qualifies for this exemption. A Notice of Exemption has been filed with the County of Los Angeles and the State Clearinghouse. Award Design-Build Peck Well PFAS Treatment System June 16, 2026 Page 4 of 4 FISCAL IMPACT Funds in the amount of $8,700,000 have been budgeted in the FY 2024-25 Capital Improvement Program for the PFAS Treatment System at Peck Well. Funding for this project is sourced from several PFAS litigation settlements the City has received. On December 2, 2025, the City Council approved a Professional Services Agreement with AqueoUSVETS LLC. for the purchase of IX adsorption treatment vessels in the amount of $1,825,103.30, leaving $6,874,896.70 available for the design and construction phase of the project. The total cost for the design and construction of the Peck Well PFAS Treatment System Project is $3,204,400. With the requested 10% contingency, the project cost is $3,524,840, which is within the adopted budget. RECOMMENDATION It is recommended that the City Council determine that this project is categorically exempt under the California Environmental Quality Act (“CEQA”); and approve, authorize, and direct the City Manager to execute a design-build contract with Pacific Hydrotech Corporation for the Peck Well PFAS Treatment System Project in the amount of $3,204,400, with a 10% contingency. Attachment: Proposed Design-Build Contract 24347.00600\31594114.1 - 1 - DESIGN-BUILD CONTRACT DESIGN BUILD CONTRACT BETWEEN CITY OF ARCADIA AND PACIFIC HYDROTECH CORPORATION This Design-Build Contract (“Contract”) is made and entered into this _____ day of ______________, 2026, by and between the by and between the CITY OF ARCADIA (“City”) and PACIFIC HYDROTECH CORPORATION (the “Design-Build Entity”), for the purpose of designing and constructing the Peck Well Ion Exchange Adsorption Treatment System Project (the “Project”). The City and the Design-Build Entity are herein collectively referred to as the “Parties.” RECITALS A. The City desires to contract with a single entity for design and construction of the Project, as set forth in this Contract. B. The Design-Build Entity was invited to respond to the City’s Request for Proposal (“RFP”) for the Project. C. The Design-Build Entity submitted a Proposal for the Project, which was selected as providing the best-value for the Project, and is prepared to enter into this Contract. AGREEMENT In consideration of the above recitals and the mutual covenants and conditions set forth herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby set forth their mutual covenants and understandings as follows: 1. Incorporation of Recitals. The above referenced recitals are true and correct and are incorporated into this Contract by this reference. 2. Design-Build Entity. The Design-Build Entity consists of N2W Engineering functioning as the designer/design team for the Project and providing civil structural engineering services, Superior Tank functioning as the subcontractor team for the Project and providing furnishing and installation of backwash tank services, Reliance Paving functioning as the subcontractor team for the Project and providing asphalt paving services, and Hemet Fence functioning as the subcontractor team for the Project and providing the furnishing and installation of the perimeter entry gate to the project facility site, and Pacific Hydrotech Corporation as the general contractor for the project and providing all construction services for the Project. For purposes of this Contract, a properly authorized representative of Design-Build Entity shall execute the Contract on its behalf, and shall have the full authority to make all decisions necessary on behalf of the Design-Build Entity Notwithstanding the foregoing, the City may accept bonds provided from the member of the 24347.00600\31594114.1 - 2 - DESIGN-BUILD CONTRACT Design-Build Entity designated for construction services, and/or professional liability insurance from the member of the Design-Build Entity designated for design/architectural services. 3. Incorporation of Documents. 3.1 This Contract includes and hereby incorporates in full by reference the following Contract Documents, including all exhibits, drawings, specifications and documents therein, and attachments and addenda thereto: o Request for Proposal (“RFP”) and all exhibits, addenda, attachments and appendices o Design-Build Entity Proposal in response to RFP dated April 2026 o Contract o General Conditions o Attachment 1 to this Contract - Cost of Extra Work o Attachment 2 to this Contract - Performance Bond o Attachment 3 to this Contract - Payment Bond o Attachment 4 to this Contract - Workers Compensation Certification o Attachment 5 to this Contract - Public Works Contractor Registration Certification 3.2 Acknowledgement of Contract Documents. The above documents constitute and may hereinafter be referred to as the “Contract Documents.” In addition to signing this Contract, the Design-Build Entity shall review and execute where appropriate all the Attachments to this Contract described above. Also, the Design-Build Entity shall initial this paragraph immediately below acknowledging that he or she has read, understood and agrees with all of the terms of the Contract Documents, including, but not limited to, provisions of the General Conditions relating to indemnification, insurance, standards of performance, termination, compensation and time of the essence performance. The Design-Build Entity shall not disclaim knowledge of the meaning and effect of any term or provision of the Contract Documents, and agrees to strictly abide by their meaning and intent. In the event that the Design-Build Entity fails to initial below, the City shall have the right to declare the Contract unexecuted and to award the Contract to another the Design- Build Entity in accordance with California law. ____________________________ Design-Build Entity’s Initials 24347.00600\31594114.1 - 3 - DESIGN-BUILD CONTRACT 4. The Design-Build Entity’s Obligations. 4.1 Guaranteed Maximum Price. The Design-Build Entity promises and agrees, at its own cost and expense, to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately complete the Project as described in the Contract Documents (hereinafter the “Scope of Work”), for a Guaranteed Maximum Price (“GMP”) of THREE MILLION, TWO HUNDRED FOUR THOUSAND, FOUR HUNDRED DOLLARS AND NO CENTS ($3,204,400.00) as stated in the Design-Build Entity’s Proposal submitted in response to the RFP. Unless otherwise stated in the Contract Documents, the GMP shall pay for all costs and expenses required to design and construct the Project. 4.2 Extra Work. Extra Work shall have the meaning given to it in the General Conditions. Extra Work shall be compensated at the rates set forth in Attachment 1 to this Contract, and shall be initiated only upon written approval by the City as described in the General Conditions. 4.3 Standard of Performance. The Design-Build Entity’s performance of the work set forth in the Contract Documents shall at all times be performed in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline(s) in the State of California, and Design-Build Entity shall be fully responsible to City for any damages or delays to the Project caused by the Design-Build Entity as specified in the indemnification provision of this Contract. The Design-Build Entity’s performance shall at all times be in conformance with the standards set forth in the Contract and the General Conditions. 5. Period of Performance, Liquidated Damages, and Performance Incentive. 5.1 The Design-Build Entity guarantees that it shall perform and complete all work necessary for Completion of the Project, as defined in the General Conditions, by the Guaranteed Completion Date of April 30, 2027 (“GCD”). 5.2 The Design-Build Entity agrees that liquidated damages will apply in the amount of $2,500 for each and every calendar day beyond the GCD that Final Completion of the Project has not been achieved. 6. The City’s Basic Obligation. The City agrees to engage and do hereby engage the Design-Build Entity as an independent contractor to furnish all materials and to perform all work described in the Scope of Work for the Project according to the terms and conditions herein contained for the GMP set forth above. Except as otherwise provided in the Contract, the City shall pay to the Design-Build Entity, as full consideration for the satisfactory performance by the Design-Build Entity of the services and obligations required by this Contract, the above referenced compensation in accordance with compensation provisions set forth in the Contract. 24347.00600\31594114.1 - 4 - DESIGN-BUILD CONTRACT 7. Representatives. 7.1 City’s Representative. The City hereby designates Tiffany Lee, Interim Principal Civil Engineer, as the person to act as its representative for the performance of this Contract (“City’s Representative”). The City’s Representative shall be authorized to act as liaison between City and the Design-Build Entity in the administration of this Contract and all work on the Project. The City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. City may designate new and/or different individuals to act as City’s Representative from time to time upon written notice to the Design-Build Entity. 7.2 Design-Build Entity’s Representative. The Design-Build Entity hereby designates Joselito Guintu, Vice-President, or his or her designee, to act as its representative for the performance of this Contract (“Design-Build Entity’s Representative”). Design-Build Entity’s Representative shall have full authority to represent and act on behalf of the Design-Build Entity for all purposes under this Contract. The Design- Build Entity’s Representative shall supervise and direct all work on the Project, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the work pursuant to this Contract. 8. Design-Build Entity’s Licensing. The Design-Build Entity shall have only appropriately licensed contractors performing work on the Project as required by the Business and Professions Code. The Design-Build Entity hereby designates Pacific Hydrotech Corporation, License No. Class A, B, and Hazard Substance Removal, (License No. 518355) to act as the licensed general contractor for the Project. Design-Build Entity’s general contractor shall perform all services required under the Contract Documents in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals qualified to perform such services in the same discipline in the State of California, and the Design Build entity shall be fully responsible to the City for any damages and/or delays to the Project as specified in the indemnification provisions of the Contract. Any change in the general contractor shall be subject to the City’s prior written approval, which approval shall not be unreasonably withheld. The new general contractor shall be of at least equal competence as the prior general contractor. In the event that City and Design-Build Entity cannot agree as to the substitution of a new general contractor, the City shall be entitled to terminate this Contract as described in the General Conditions. 9. Design-Build Entity’s Design Professional of Record. The Design-Build Entity shall name a specific person to act as the Design Professional of Record as described in the General Conditions, subject to the approval of the City. The Design-Build Entity hereby designates Jang Wang, P.E. (License No. 81123) to act as the Design Professional of Record for the Project. Design-Build Entity’s Design Professional of Record shall perform all services required under the Contract Documents in a skillful and competent manner, 24347.00600\31594114.1 - 5 - DESIGN-BUILD CONTRACT consistent with the standards generally recognized as being employed by professionals qualified to perform such services in the same discipline in the State of California, and the Design Build entity shall be fully responsible to the City for any damages and/or delays to the Project as specified in the indemnification provisions of the Contract. Any change in the Design Professional of Record shall be subject to the City’s prior written approval, which approval shall not be unreasonably withheld. The new Design Professional of Record shall be of at least equal competence as the prior Design Professional of Record. In the event that City and Design-Build Entity cannot agree as to the substitution of a new Design Professional of Record, the City shall be entitled to terminate this Contract as described in the General Conditions. 10. Indemnification. To the fullest extent allowed by law, Design-Build Entity agrees to protect, save, defend and hold harmless, to the greatest extent provided by law, the City, its governing council and each member thereof, their officers, agents and employees from any and all claims, liabilities, reasonable expenses or damages of any nature, including reasonable attorney’s fees, for injury or death of any person, or damage to property, or interference with the use of property arising out of the negligent acts, errors or omission, or willful misconduct by the Design-Build Entity, the Design-Build Entity’s agents, officers, employees, sub-consultants, or independent consultants hired by the Design-Build Entity to provide services pursuant to this Contract. The only exception to the Design-Build Entity’s responsibility to protect, save, defend and hold harmless the City, is where a claim, liability, expense or damage occurs due to the sole negligence, willful misconduct or active negligence of the City. This hold harmless provision shall apply to all liability, as provided for above, regardless of whether any insurance policies are applicable. Insurance policy limits do not act as a limitation upon the amount of the indemnification to be provided by the Design-Build Entity. Notwithstanding the foregoing, to the extent Design-Build Entity’s Scope of Work is subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Design-Build Entity. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Design- Build Entity’s indemnity obligation shall not apply to liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense arising from the sole or active negligence or willful misconduct of the City. In claims against any person or entity indemnified under this provision, that are made by an employee of the Design-Build Entity or any Subcontractor, a person indirectly employed by the Design-Build Entity or any Subcontractor, or anyone for whose acts the Design-Build Entity or any Subcontractor may be liable, the indemnification obligation under this provision shall not be limited by any limitation on amount or type of damages, compensation, or benefits payable by or for Design-Build Entity or any Subcontractor under workers’ compensation acts, disability benefit acts, or other employee benefit acts or any other insurance limitations. The indemnification obligations under this provision shall not be limited by any assertion or finding that the person or entity indemnified is liable by reason of a non-delegable duty. 24347.00600\31594114.1 - 6 - DESIGN-BUILD CONTRACT Joint and Several Liability shall apply to the Design-Build Entity. In the event the Design-Build Entity and one or more than one other party is connected with an accident or occurrence covered by this indemnification, then all such parties shall be jointly and severally responsible to each of the Indemnitees for indemnification, and the ultimate responsibility among such indemnifying parties for the loss and expense of any such indemnification shall be resolved without jeopardy to any indemnitee listed herein. 11. The Design-Build Entity’s Labor Certification. The Design-Build Entity maintains that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of all work described in the Scope of Work for the Project. A certification form for this purpose is Attachment 4 to this Contract and incorporated herein by reference, and shall be executed simultaneously with this Contract. 12. Contractor and Subcontractor Registration. Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. No bid will be accepted nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work. Design-Build Entity is directed to review, fill out and execute the Public Works Contractor Registration Certification attached hereto as Attachment “5” prior to contract execution. 13. Successors. The parties do for themselves, their heirs, executors, administrators, successors, and assigns agree to the full performance of all of the provisions contained in this Contract. The Design-Build Entity may not either voluntarily or by action of law, assign any obligation assumed by the Design-Build Entity hereunder without the prior written consent of the City. 14. Notices. All notices hereunder and communications regarding interpretation of the terms of the Contract or changes thereto shall be provided by the mailing thereof by registered or certified mail, return receipt requested, postage prepaid and addressed as follows: To City: City of Arcadia 11800 Goldring Road P.O. Box 60021 Arcadia, CA 91066-6021 Attn: Tiffany Lee, Interim Principal Civil Engineer To Design-Build Entity: Pacific Hydrotech Corporation 30590 Cochise Circle Murrieta, CA 92563 Attn: Joselito Guintu, Vice-President Any notice so given shall be considered received by the other party three (3) days after 24347.00600\31594114.1 - 7 - DESIGN-BUILD CONTRACT deposit in the U.S. Mail, first class postage prepaid, addressed to the party at the above address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 15. Attachments. All Attachments referenced in this Contract are incorporated into the Contract by this reference. 16. Amendments, Changes and Modifications. This Contract may not be amended, changed, modified, altered or terminated without the written agreement of both Parties hereto. 17. Execution in Counterparts. This Contract may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 18. Applicable Law. This Contract shall be governed by and construed in accordance with the laws of the State of California, and venue in the County of Los Angeles. 19. Captions. The captions or headings in this Contract are for convenience only and in no way define, limit or describe the scope or intent of any provisions or Sections of this Contract. 20. Prior Agreements. This Contract contains all of the agreements of the Parties hereto with respect to any matter covered or mentioned in this Contract and no prior agreements or understanding pertaining to any such matter shall be effective for any purpose. 21. Further Assurances. Parties shall promptly execute and deliver all documents and instruments reasonably requested to give effect to the provisions of this Contract. 22. Recitals Incorporated. The Recitals set forth at the beginning of this Contract are hereby incorporated into its terms and provisions by this reference. 23. Time of the Essence. Time is of the essence with respect to each of the terms, covenants, and conditions of this Contract. 24. Authority of Signatories. The persons executing this Contract on behalf of their respective Parties represent and warrant that they have the authority to do so under law and from their respective Parties. IN WITNESS WHEREOF, the Parties have caused this Contract to be executed by their respective officers who are duly authorized, as of the Effective Date set forth above. SIGNATURES ON NEXT PAGE 24347.00600\31594114.1 - 8 - DESIGN-BUILD CONTRACT IN WITNESS WHEREOF, the Parties have caused this Contract to be executed by their respective officers who are duly authorized, as of the Effective Date set forth above. CITY OF ARCADIA PACIFIC HYDROTECH CORPORATION Dominic Lazzaretto Signature City Manager _________________________ Attest: Print Name _________________________ ________________________ City Clerk Title Signature APPROVED AS TO FORM: _________________________ Print Name ________________________ Michael J. Mauer _________________________ City Attorney Title 24347.00600\31594114.1 - 9 - HOURLY RATE SCHEDULE FOR EXTRA WORK ATTACHMENT 1 HOURLY RATE SCHEDULE FOR EXTRA WORK NOT APPLICABLE. 24347.00600\31594114.1 - 10 - PERFORMANCE BOND ATTACHMENT 2 PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Arcadia, (hereinafter referred to as “City”) has awarded to Pacific Hydrotech Corporation, (hereinafter referred to as the “Contractor”) an agreement for Peck Well Ion Exchange (IX) Adsorption Treatment System Project, Contract No. ________ (hereinafter referred to as the “Project”). WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated ________________, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents. NOW, THEREFORE, we, ______________________, the undersigned Contractor and ________________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of THREE MILLION, TWO HUNDRED FOUR THOUSAND, FOUR HUNDRED DOLLARS AND NO CENTS ($3,204,400.00), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one (1) year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officials, officers, employees, and authorized volunteers, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney’s fees, incurred by City in enforcing such obligation. 24347.00600\31594114.1 - 11 - PERFORMANCE BOND As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure Section 337.15. Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option: (1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or (2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. (3) Permit the City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor. Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the City, when declaring the Contractor in 24347.00600\31594114.1 - 12 - PERFORMANCE BOND default, notifies Surety of the City’s objection to Contractor’s further participation in the completion of the Project. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project. By their signatures hereunder, Surety and Contractor hereby confirm under penalty of perjury that surety is an admitted surety insurer authorized to do business in the State of California. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 24347.00600\31594114.1 - 13 - PERFORMANCE BOND IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20___. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title The rate of premium on this bond is ____________ per thousand. The total amount of premium charges is $_______________________________. (The above must be filled in by corporate attorney.) THIS IS A REQUIRED FORM Any claims under this bond may be addressed to: (Name and Address of Surety) ___________________________________________ ___________________________________________ ___________________________________________ (Name and Address of Agent or ___________________________________________ Representative for service of ___________________________________________ process in California, if different ___________________________________________ from above) (Telephone number of Surety ___________________________________________ and Agent or Representative for service of process in California) 24347.00600\31594114.1 - 14 - PAYMENT (MATERIAL & LABOR) BOND ATTACHMENT 3 PAYMENT BOND KNOW ALL MEN BY THESE PRESENTS That WHEREAS, the City of Arcadia (hereinafter designated as the “City”), by action taken or a resolution passed June 16, 2026, has awarded to Pacific Hydrotech Corporation hereinafter designated as the “Principal,” a contract for the work described as follows: Peck Well Ion Exchange (IX) Adsorption Treatment System Project, Contract No. _________ (the “Project”); and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth. NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of THREE MILLION, TWO HUNDRED FOUR THOUSAND, FOUR HUNDRED DOLLARS AND NO CENTS ($3,204,400.00) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Civil Code Section 9100, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Revenue and Taxation Code Section 18663, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by the City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses. 24347.00600\31594114.1 - 15 - PAYMENT (MATERIAL & LABOR) BOND This bond shall inure to the benefit of any of the persons named in Civil Code Section 9100 so as to give a right of action to such persons or their assigns in any suit brought upon this bond. It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Civil Code Section 9100, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code. By their signatures hereunder, Surety and Principal hereby confirm under penalty of perjury that surety is an admitted surety insurer authorized to do business in the State of California. IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title 24347.00600\31594114.1 - 16 - WORKERS COMPENSATION CERTIFICATION ATTACHMENT 4 WORKERS COMPENSATION CERTIFICATION Labor Code section 3700 in relevant part provides: Every employer except the State shall secure the payment of compensation in one or more of the following ways: (a) By being insured against liability to pay compensation in one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations a certificate of consent to self-insure, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to his employees. I am aware of the provisions of section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self- insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract. PACIFIC HYDROTECH CORPORATION: ____________________________________ BY: TITLE: DATE: In accordance with Article 5 (commencing at section 1860), chapter 1, part 7, division 2 of the Labor Code, the above certificate must be signed and filed with the awarding body prior to performing any work under this contract. 24347.00600\31594114.1 - 17 - PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION ATTACHMENT 5 PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. See http://www.dir.ca.gov/Public-Works/PublicWorks.html for additional information. No bid will be accepted nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work. Design-Build Entity hereby certifies that it is aware of the registration requirements set forth in Labor Code sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of Industrial Relations.1 Name of Design-Build Entity : DIR Registration Number: DIR Registration Expiration:_________________________ Small Project Exemption: _____ Yes or _____ No Unless Design-Build Entity is exempt pursuant to the small project exemption, Design-Build Entity further acknowledges: • Design-Build Entity shall maintain a current DIR registration for the duration of the project. • Design-Build Entity shall include the requirements of Labor Code sections 1725.5 and 1771.1 in its contract with subcontractors and ensure that all subcontractors are registered at the time of bid opening and maintain registration status for the duration of the project. • Failure to submit this form or comply with any of the above requirements may result in a finding that the bid is non-responsive. 1 If the Project is exempt from the contractor registration requirements pursuant to the small project exemption under Labor Code Sections 1725.5 and 1771.1, please mark “Yes” in response to “Small Project Exemption.” 24347.00600\31594114.1 - 18 - PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION Name of Design-Build Entity Signature Name and Title Dated