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HomeMy WebLinkAboutItem 08b - SCADA System Replacement Project STAFF REPORT PUBLIC WORKS SERVICES DEPARTMENT DATE: April 7, 2026 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: John Corona, Utilities Manager SUBJECT: RESOLUTION NO. 7678 AMENDING THE FISCAL YEAR 2025-26 CAPITAL IMPROVEMENT PROGRAM BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR THE SCADA SYSTEM REPLACEMENT PROJECT IN THE AMOUNT OF $163,195, OFFSET BY A REDUCTION IN THE WATER FUND; AND APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH MORROW-MEADOWS CO., FOR THE SCADA SYSTEM REPLACEMENT PROJECT IN THE AMOUNT OF $1,057,450 CEQA: Not a Project Recommendation: Adopt and Approve SUMMARY The Fiscal Year 2025-26 Capital Improvement Program provides for the replacement of the City’s Supervisory Control and Data Acquisition (“SCADA”) system. The SCADA system electronically controls the City’s entire water system and is a critical component for water service delivery. The existing SCADA system is built on a GENESIS32 platform, which has become antiquated and increasingly difficult to maintain. It is no longer widely used in the industry, lacks support from local programmers, and presents operational challenges for staff. The existing SCADA system must be replaced with a modern, widely adopted SCADA solution. To ensure the City is receiving the highest quality service and most competitive pricing for a new SCADA system, the Public Works Services Department (“PWSD”) solicited a request for proposals. It is recommended that the City Council adopt Resolution No. 7678 amending the Fiscal Year 2025-26 Capital Improvement Program Budget, authorizing a supplemental budget appropriation for the SCADA System Replacement Project in SCADA System Replacement Professional Services Agreement April 7, 2026 Page 2 of 5 the amount of $163,195, offset by a reduction in the Water Fund; and approve, authorize, and direct the City Manager to execute a Professional Services Agreement with Morrow-Meadows Co., for the SCADA System Replacement Project in the amount of $1,057,450, with a 10% contingency. BACKGROUND The City of Arcadia operates a complex water production and distribution system that requires continuous monitoring and automated control to ensure safe and reliable service to the community. The SCADA system is essential for real-time monitoring, alarm management, data logging, and automated control of the City’s water infrastructure. Maintaining a modern, reliable SCADA platform is critical for protecting public health, ensuring regulatory compliance, and supporting operational staff. As the City’s water infrastructure continues to operate and expand, modernization of the SCADA system is necessary to maintain efficient operations and ensure compatibility with modern control technologies. The City’s water production and distribution system includes numerous critical facilities and assets that rely on the SCADA system for monitoring and control. These assets include 10 active groundwater wells, 10 booster stations, 29 booster pumps, 7 pressure zones with 2 additional sub-zones, 15 reservoirs, 2 forebays, 45 million gallons of water storage, 1 granular activated carbon (“GAC”) treatment plant, 1 Metropolitan Water District interconnection, and 1 sewer lift station. Each of these facilities depends on the SCADA system to provide real-time data, alarms, operational control, and historical reporting. The current SCADA system is built on a GENESIS32 platform and has been in operation for over 30 years. The current SCADA system has reached the end of its useful life. The platform is no longer widely adopted across the industry, and the system has become increasingly difficult to maintain. Local programmers with experience supporting the system are now limited and software updates, troubleshooting, and system expansion are challenging. The aging platform introduces risk to system reliability and operational efficiency. SCADA System Replacement Professional Services Agreement April 7, 2026 Page 3 of 5 DISCUSSION The Fiscal Year 2025-26 Capital Improvement Program provides for the replacement of the City of Arcadia’s SCADA system. To ensure the City is receiving the highest quality of service and most competitive pricing, the PWSD solicited a request for proposals. A Notice Inviting Proposals for the SCADA System Replacement Project was published on January 26, 2026, in accordance with City Council Resolution No. 7483, and RFP packages were provided to companies that perform this type of work. On March 5, 2026, the City Clerk received four proposals. The evaluation results and ranking of each company’s proposal are listed below: Rank Firm Location Cost Proposal 1 Morrow-Meadows Co. Walnut, CA $1,057,450 2 Vertech Industrial Systems Irvine, CA $1,014,355 * 3 KDC Inc. Los Alamitos, CA $1,350,000 4 Sulzer Colton, CA $5,311,338 *Non-responsive proposal All proposals were evaluated based on the firm’s experience, qualifications, understanding of City needs, quality of service approach, and cost. During the evaluation period, it was determined that Vertech Industrial Systems did not provide their actual cost for the SCADA System Replacement. Instead, they provided a budgetary quote indicating that they would need to verify hardware design and equipment costs before providing an actual total cost. They also did not include tax. For this reason, Vertech Industrial Systems is considered non-responsive to the request for proposals. It was determined that Morrow-Meadows Co. is the most qualified firm to provide the complete scope of services for the SCADA System Replacement Project. Morrow-Meadows has over 20 years of experience providing successful delivery of SCADA system improvement projects to more than 30 municipalities, and has successfully completed several similar projects for local agencies in the San Gabriel Valley. Morrow-Meadows has the experience required to provide SCADA system upgrades, programming, and technical support. Morrow- Meadows will transition the City’s SCADA system from the antiquated GENESIS32 platform to the new Ignition platform. The new Ignition platform provides a modern, intuitive user interface that improves visibility of system conditions and simplifies daily operations for staff. Unlike the SCADA System Replacement Professional Services Agreement April 7, 2026 Page 4 of 5 existing platform, Ignition is widely used across municipal and industrial sectors. This provides access to a broader pool of qualified programmers and integrators, reducing long-term reliance on limited specialists. Ignition supports modern communication protocols and robust integration with programmable logic controllers, improving reliability and system responsiveness across remote facilities. The platform is designed to grow with system needs, allowing the City to expand monitoring, integrate additional infrastructure, and incorporate future technologies without major system overhauls. The new Ignition platform will reduce operational risk and ensure the SCADA system is maintainable and functional for many years. Upgrading the SCADA platform will also allow the City to modernize system graphics, improve alarm management, enhance historical data collection, and support improved reporting and operational analysis. ENVIRONMENTAL ANALYSIS The proposed contract does not constitute a project under the California Environmental Quality Act (“CEQA”), under Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty it will have no impact on the environment. FISCAL IMPACT The total cost for the SCADA System Replacement Project is $1,057,450. In addition, a standard 10% contingency or $105,745 is recommended to cover potential unforeseen costs or circumstances. The amount budgeted in the Fiscal Year 2025-26 Capital Improvement Program for the SCADA System Replacement Project was $1,000,000. Therefore, a budget appropriation from the Water Fund in the amount of $163,195 is requested for the SCADA System Replacement Project to cover the entire project cost, including potential contingencies. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7678 amending the Fiscal Year 2025-26 Capital Improvement Program Budget, authorizing a supplemental budget appropriation for the SCADA System Replacement Project in the amount of $163,195, offset by a reduction in the Water Fund; and approve, authorize, and direct the City Manager to execute a SCADA System Replacement Professional Services Agreement April 7, 2026 Page 5 of 5 Professional Services Agreement with Morrow-Meadows Co., for the SCADA System Replacement Project in the amount of $1,057,450, with a 10% contingency. Attachments: Resolution No. 7678 Proposed Professional Services Agreement 1 Updated Feb. 2020 CITY OF ARCADIA PROFESSIONAL SERVICES AGREEMENT REGARDING SCADA SYSTEM REPLACEMENT PROJECT This Agreement is made and entered into as of ______________________, 20______ by and between the City of Arcadia, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 240 West Huntington Drive, Arcadia, California 91066 (“City”), and Morrow-Meadows Corporation, a California Corporation, with its principal place of business at 231 Benton Court, City of Industry, CA 91789 (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. RECITALS A. City is a public agency of the State of California and is in need of professional services for the following project: SCADA System Replacement Project (hereinafter referred to as “the Project”). B. Consultant is duly licensed and has the necessary qualifications to provide such services. C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein. AGREEMENT NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.” 2. Compensation. a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of ONE MILLION, FIFTY-SEVEN THOUSAND, FOUR HUNDRED FIFTY DOLLARS, AND NO CENTS ($1,057,450.00). This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis. 2 Updated Feb. 2020 3. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. 4. Maintenance of Records. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City. 5. Term or Time of Performance. The term of this Agreement shall be from one year from the date of execution, unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Project. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). The Notice to Proceed shall set forth the date of commencement of work. 6. Delays in Performance. a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 3 Updated Feb. 2020 7. Compliance with Law. a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement. 8. Standard of Care Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. 9. Assignment and Subconsultant Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder. 10. Independent Contractor Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. 11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. 4 Updated Feb. 2020 a. Commercial General Liability (i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following: (1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following: (1) Bodily Injury and Property Damage (2) Personal Injury/Advertising Injury (3) Premises/Operations Liability (4) Products/Completed Operations Liability Consultant shall procure and submit evidence of insurance for at least five (5) years from the time that all work under this Agreement is completed. (5) Aggregate Limits that Apply per Project (6) Explosion, Collapse and Underground (UCX) exclusion deleted (7) Contractual Liability with respect to this Agreement (8) Property Damage (9) Independent Consultants Coverage (iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. Consultant may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. 5 Updated Feb. 2020 (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liability (i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. Consultant may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. c. Workers’ Compensation/Employer’s Liability (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. 6 Updated Feb. 2020 d. Technology Professional Liability (Errors and Omissions) At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Cyber Liability Insurance. Cyber Liability Insurance covering (1) all acts, errors, omissions, negligence, infringement of intellectual property; (2) network security and privacy risks, including but not limited to unauthorized access, failure of security, breach of privacy perils, wrongful disclosure, collection, or negligence in the handling of confidential information, privacy perils, including coverage for related regulatory defense and penalties; (3) system failure, damage to or destruction of electronic information, data recovery, business interruption, cyber extortion, and information theft; (4) data breach expenses payable whether incurred by City or Consultant, including but not limited to consumer notification, whether or not required by law, computer forensic investigations, public relations and crisis management firm fees, credit file or identity monitoring or remediation services in the performance of services for City or on behalf of City hereunder. If a sub-limit applies to any elements of coverage, the certificate of insurance evidencing the coverage above must specify the coverage section and the amount of the sub-limit. f. Minimum Policy Limits Required (i) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $2,000,000 per occurrence/ $4,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 per occurrence for bodily injury and property damage Employer’s Liability $1,000,000 per occurrence Technology Professional Liability $2,000,000 per claim and aggregate (errors and omissions) 7 Updated Feb. 2020 Cyber Liability $2,000,000 per claim and annual aggregate (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. g. Evidence Required Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. h. Policy Provisions Required (i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. Consultant may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. 8 Updated Feb. 2020 Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. i. Qualifying Insurers (i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. j. Additional Insurance Provisions (i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. 9 Updated Feb. 2020 (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. k. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. All subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 12. Indemnification. a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers. b. To the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s obligations under the above indemnity shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, but shall not otherwise be reduced. If Consultant’s obligations to defend, indemnify, and/or hold harmless arise out of Consultant’s performance of “design professional services” (as that term is defined under Civil Code section 2782.8), then upon Consultant obtaining a final adjudication that liability under a claim is caused by the comparative active negligence or willful misconduct of the City, Consultant’s obligations shall be reduced in proportion to the established comparative liability of the City and shall not exceed the Consultant’s proportionate percentage of fault. 10 Updated Feb. 2020 13. California Labor Code Requirements. a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). b. If the services are being performed as part of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor. 11 Updated Feb. 2020 14. Verification of Employment Eligibility. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub- subconsultants to comply with the same. 15. City Material Requirements. Consultant is hereby made aware of the City’s requirements regarding materials, as set forth in Request for Proposals, which are deemed to be a part of this Agreement. 16. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Los Angeles, State of California. 17 Termination or Abandonment a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant. 18 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other 12 Updated Feb. 2020 documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City. 19. Organization Consultant shall assign Steve Marlow, as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 20. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 21. Notice Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to: CITY: City of Arcadia 240 West Huntington Drive Arcadia, CA 91066 Attn: John Corona Utilities Manager CONSULTANT: Morrow Meadows 231 Benton Court City of Industry, CA 91789 Attn: Steve Marlow Project Manager and shall be effective upon receipt thereof. 22. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant. 23. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. 13 Updated Feb. 2020 24. Entire Agreement This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement. 25. Severability The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the provisions unenforceable, invalid or illegal. 26. Successors and Assigns This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void. 27. Non-Waiver None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing. 28. Time of Essence Time is of the essence for each and every provision of this Agreement. 29. City’s Right to Employ Other Consultants City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects. 30. Prohibited Interests Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or 14 Updated Feb. 2020 violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. [SIGNATURES ON FOLLOWING PAGE] 15 Updated Feb. 2020 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF ARCADIA AND MORROW-MEADOWS IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF ARCADIA MORROW-MEADOWS CORPORATION By: By: Dominic Lazzaretto City Manager Title: Printed Name: ATTEST: By: Title: By: City Clerk Printed Name: APPROVED AS TO FORM: CONCUR: By: ___________________________________ Michael J. Maurer Paul Cranmer City Attorney Public Works Services Director 16 Updated Feb. 2020 EXHIBIT “A” Scope of Services The Scope of Services for the Supervisory Control and Data Acquisition (“SCADA”) System Replacement Project shall include, but are not limited to the following: Scope of Services/Work • Replacement and upgrade of the City’s Supervisory Control and Data Acquisition (“SCADA”) system. The project will involve the installation of new Programmable Logic Controllers (PLCs), short wave radios, communication antennas, and integration with Ignition SCADA software. The scope also includes full system testing and all necessary data programming. • A modern, fully supported SCADA solution capable of meeting current operational needs and accommodating future growth. • Panel shop shall be UL- certified, and within 1 hour drive from the City’s yard. • Radio communication works shall be completed by professional telemetry communication technicians and engineers, trained and certified as GE Channel Partner Equipment Supply and Installation • Furnish and install new PLCs at all existing SCADA sites. • Replace all existing short-wave radios with updated, compatible models. • Install new communication antennas to support reliable data transmission. SCADA Software Integration • Migrate all existing SCADA functions to the Ignition software platform. • Configure Ignition to communicate with new PLCs and radio network. • Develop operator interface screens consistent with modern SCADA UI standards. Programming and Configuration • Program all RTUs for local and remote-control capabilities. • Configure communication settings between PLCs, radios, and SCADA master station. • Import historical data and establish real-time data trends. Testing and Commissioning • Perform point-to-point and end-to-end system testing. • Conduct factory and site acceptance testing. • Provide comprehensive system validation and operator sign-off. Documentation and Training • Provide complete system documentation including wiring diagrams, communication maps, and programming logic. • Conduct on-site training for operators and maintenance personnel. 17 Updated Feb. 2020 Materials Provided by the City: • All computer hardware and software required for the upgrade will be purchased and provided by the city including: a. Servers b. Workstations c. Switch d. Software including MS Windows Server, Office, RDP licenses, SQL Server etc. e. Firewall • Ignition software required. • Schneider PLC programming tool – EcoStruxure control expert software. Coordination The contractor shall be responsible for all project coordination activities related to the SCADA system. This includes coordination with City staff, engineers, integrators, vendors, and other contractors to ensure seamless execution. The contractor shall manage schedules, meetings, communications, and interface requirements to ensure the SCADA system is delivered and integrated in accordance with project requirements. Record Keeping The contractor shall maintain complete and accurate project records throughout the duration of the project. Record keeping shall include, but not be limited to, meeting minutes, correspondence, submittals, approvals, change orders, configuration files, test results, and as- built documentation. All records shall be organized and made available to the City of Arcadia upon request. Installation The contractor shall be responsible for the installation of all SCADA system components. Installation activities shall be properly scheduled and coordinated with appropriate City staff to minimize disruption to operations. The contractor shall ensure installation complies with project specifications, applicable codes, and industry standards, and shall provide qualified personnel to perform all work. Location Name & Scope 1. Yard / Office - Provide and install a 19" IT cage, min. 12U, the depth 30". 2. Peck Well - Replace PLC/Install New GE Orbit Radio 3. LiveOak - Replace PLC/Install New GE Orbit Radio, LiveOak GAC Plant Add a remote rack in the existing GAC enclosure for 3 Flow meters (3 AI + 3DI) add necessary conduits CAT5E cable back to the control panel 4. Longden Plant - Replace PLC/Install New GE Orbit Radio 5. Longley Well - Replace PLC/Install New GE Orbit Radio 18 Updated Feb. 2020 6. Camino Real Plant - Replace PLC/Install New GE Orbit Radio, 24V DC Power supply with PULS, and charger module 7. Baldwin Booster Station - Replace PLC/Install New GE Orbit Radio 8. Colorado Well - Replace PLC/Install New GE Orbit Radio, and 24VC PS with PULS and charger module 9. Orange Grove CP1 - Complete back panel replacement (New PLC/Power/Cable/Terminal/Wiring/Radio etc.) 10. Orange Grove CP2 - Complete back panel replacement (New PLC/Power/Cable/Terminal/Wiring/Radio etc.) 11. St. Joseph Facility - Replace PLC/Install New GE Orbit Radio 12. Santa Anita Reservoir - Complete back panel replacement (New PLC/Power/Cable/Terminal/Wiring/Radio etc.) 13. Whispering Pines Booster Station - Replace PLC/Install New GE Orbit Radio 14. Torry Pines - Replace PLC/Install New GE Orbit Radio, add new UPS on the left-side panel that is empty now 15. Lower Canyon - Replace PLC/Install New GE Orbit Radio 16. Upper Canyon - Add a UPS enclosure on the back of the panel, No PLC on this site. 17. PRV on Colorado with Solar Panel - Replace PLC/Install New GE Orbit Radio 18. Pressure Zone 2A PRV - Complete back panel replacement (New PLC/Power/Cable/Terminal/Wiring/Radio etc.) 19. El Monte PRV 3-4 - Complete back panel replacement (New PLC/Power/Cable/Terminal/Wiring/Radio etc.) 20. Pressure Zone 1A PRV - Complete back panel replacement (New PLC/Power/Cable/Terminal/Wiring/Radio etc.) 21. PRV Eisenhower Park - New High Security enclosure with new PLC/Install New GE Orbit Radio 22. Baldwin Reservoir - Complete back panel replacement (New PLC/Power/Cable/Terminal/Wiring/Radio etc.) 23. Colorado and Michillinda PRV 1-2 Complete back panel replacement (New PLC/Power/Cable/Terminal/Wiring/Radio etc.) 19 Updated Feb. 2020 EXHIBIT “B” Schedule of Charges/Payments Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant. This is a time-and-materials contract. Compensation shall be based on time and materials spent in accordance with the following tasks, not to exceed the total compensation listed below: The schedule of prices is attached as Attachment “A” to this Exhibit “B”. Supervisory Control and Data Acquisition (“SCADA”) Replacement - $1,057,450.00 Project Total Compensation - $1,057,450.00 The total compensation shall not exceed the total listed without written authorization in accordance with Section 2 (b) of the agreement. 20 Updated Feb. 2020 Attachment “A” to Exhibit “B” Exhibit A: - Scope of Work Task A: New SCADA Servers 1. Provide and install a free-standing network rack with UPS in the operations room 2. Install and configure two new rack-mounted servers (provided by the City) 3. Install and configure new router and switch for SCADA (provided by the City) 4. Install and configure two new workstations with 21" monitors (provided by the City) 5. Install and configure NAS backup storage (provided by the City) Subtotal: $33,500 Task B: Replacing Genesis32 SCADA with Ignition SCADA Platform 1. Review and reverse engineer the existing Gensis32 scripts and programs. 2. Attend workshops and meetings with Operations Staff. 3. Design and implement new SCADA redundant architecture 4. Install and test new Ignition systems 5. Develop the new SCADA system including graphics, pop-ups, alarms and trends. 6. Complete design and programming of new reports 7. Setup remote access to new Ignition software using tablet or laptop 8. Set up and configure SMS modem and test alarm notification systems 9. Bench test the new Ignition SCADA system 10. Cut Over from Genesis32 to the Ignition SCADA platform 11. On-line test entire new ignition system for one (1) week 12. Retire Genesis system. Subtotal: $136,100 21 Updated Feb. 2020 Task C: Replacing Bristol Babcock RTUs with Schneider M340 PLCs 1. Field wire verifications 2. Engineering design and develop new panel shop drawings. 3. Workshops with the staff and develop control strategies for all new PLCs. 4. Develop programs for all new PLCs 5. Provide and install a new PLC for the sites listed in Exhibit C 6. Provide and install a new back panel including a new PLC for the sites listed in Exhibit C 7. Factory test new back panels. 8. Rewire and loop test field I/Os on all new PLCs 9. Cut over to the new Ignition platform. 10. The work above covers 23 sites, see Exhibit C for site information. Subtotal: $ 772,680 Task D: Replacing GE MOS radios 1. Provide and install new GE Orbit radios at all sites listed on Exhibit C 2. Reconfigure and test all new radios Subtotal: $ 104,700 Total for all Tasks: $1,046,980 Performance/Payment Bond: $10,470 Total Project Price: $1,057,450 Exhibit B: - Assumptions 1. Materials provided by the city: • All computer hardware and software required for the upgrades shall be purchased by the City and registered under the City for warranty and renewal purposes. Our team will assist the City with hardware and software selection. a. Servers b. Workstations c. Router and Ethernet Switch d.NAS e. Software including MS Windows Server, Office, RDP licenses, SQL Server, NAS etc. • Ignition SCADA software licenses • Schneider PLC programming software - EcoStruxure Control Expert licenses • SMS modem for alarm notifications 22 Updated Feb. 2020 2. Morrow-Meadows Clarifications • Any additional cost on materials caused by any import tariffs will be passed on to the city. • Morrow-Meadows Corporation requests a mobilization payment of 3% of total contract value. • Morrow-Meadows Corporation provides a one (1) year construction warranty for labor and materials provided under this contract. 23 Updated Feb. 2020 EXHIBIT “C” Activity Schedule The term of this Agreement shall be for one (1) year from the date of execution. All tasks under Exhibit “A” shall be adhered to and executed accordingly. 24 Updated Feb. 2020 PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Arcadia, (hereinafter referred to as “City”) has awarded to Morrow- Meadows Corporation, (hereinafter referred to as the “Contractor”) an agreement for SCADA System Replacement 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 ONE MILLION, FIFTY-SEVEN THOUSAND, FOUR HUNDRED FIFTY DOLLARS, AND NO CENTS ($1,057,450.00), 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. 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. 25 Updated Feb. 2020 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: i. Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or ii. 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. iii. 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 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] 26 Updated Feb. 2020 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) NOTE: A copy of the Power-of-Attorney to local representatives of the bonding company must be attached hereto in addition to appropriate Notarial Acknowledgments of Execution by both Contractor and Surety. 27 Updated Feb. 2020 PAYMENT BOND (LABOR AND MATERIALS) KNOW ALL MEN BY THESE PRESENTS That WHEREAS, the City of Arcadia (hereinafter designated as the “City”), by action taken or a resolution passed April 7, 2026, has awarded to Morrow-Meadows Corporation hereinafter designated as the “Principal,” a contract for the work described as follows: SCADA System Replacement 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 ONE MILLION, FIFTY-SEVEN THOUSAND, FOUR HUNDRED FIFTY DOLLARS AND NO CENTS ($1,057,450.00) 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. 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 28 Updated Feb. 2020 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 NOTE: A copy of the Power-of-Attorney to local representatives of the bonding company must be attached hereto in addition to appropriate Notarial Acknowledgments of Execution by both Contractor and Surety.