HomeMy WebLinkAboutItem 10a - Design-Build Orange Grove Wells Treatment System
STAFF REPORT
PUBLIC WORKS SERVICES DEPARTMENT
DATE: September 1, 2026
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Assistant City Manager/Public Works Services Director
By: Tiffany Lee, Principal Civil Engineer
SUBJECT: RESOLUTION NO. 7710 AMENDING THE FISCAL YEAR 2025-26 CAPITAL
IMPROVEMENT PROGRAM BUDGET, AUTHORIZING A SUPPLEMENTAL
BUDGET APPROPRIATION FOR THE DESIGN AND CONSTRUCTION OF
THE ORANGE GROVE WELLS TREATMENT PROJECT IN THE AMOUNT OF
$1,876,227.30, OFFSET BY A REDUCTION IN THE PFAS SETTLEMENT
FUND; AND APPROVE A DESIGN-BUILD CONTRACT WITH PACIFIC
HYDROTECH CORPORATION FOR THE DESIGN AND CONSTRUCTION OF
THE ORANGE GROVE WELLS TREATMENT SYSTEM AND FACILITY
IMPROVEMENTS PROJECT IN THE AMOUNT OF $5,407,800, PLUS A 10%
CONTINGENCY
CEQA: Exempt
Recommendation: Adopt and Approve
SUMMARY
The Fiscal Year 2025-26 Capital Improvement Program (“CIP”) Budget provides
funding for the design and construction of a treatment system to address Per- and
Polyfluoroalkyl Substances (“PFAS”) at the Orange Grove Wells. To ensure the City
receives high-quality design-build services at a competitive price, the Public Works
Services Department (“PWSD”) conducted a Request for Proposals (“RFP”) process.
Following evaluation of the proposals and financial qualifications, Pacific Hydrotech
Corporation was determined to be a qualified and responsible firm to provide
professional design-build services for the Orange Grove Wells Treatment System and
Facility Improvements Project. However, due to additional scope of work
incorporated into the project, the total project cost exceeds the amount originally
approved in the CIP Budget.
Award Design-Build Orange Grove Wells Treatment System
and Facility Improvements
September 1, 2026
Page 2 of 6
Therefore, it is recommended that the City Council adopt Resolution No. 7710,
amending the Fiscal Year 2025-26 Capital Improvement Program Budget, and
authorizing a supplemental budget appropriation of $1,876,227.30 for the design
and construction of the Orange Grove Wells Treatment Project, offset by a reduction
in the PFAS Settlement Fund. It is further recommended that the City Council
approve, authorize, and direct the City Manager to execute a design-build contract
with Pacific Hydrotech Corporation in the amount of $5,407,800, plus a 10%
contingency, for the Design and Construction of the Orange Grove Wells Treatment
System and Facility Improvements Project.
BACKGROUND
The U.S. Environmental Protection Agency (“EPA”) describes PFAS as a group of
human-made chemicals that have been manufactured and used in a wide range of
industrial, commercial, and household applications. PFAS may be present in food
packaging as well as other consumer and commercial products and can enter
groundwater through various pathways. Due to their persistence and potential
adverse effects on human health and the environment, PFAS are subject to
increasing federal and state regulatory requirements.
On April 10, 2024, the EPA established legally enforceable Maximum Contaminant
Levels (“MCLs”) for certain PFAS in drinking water. Public water systems are required
to monitor PFAS and conduct ongoing compliance efforts. Where monitoring
indicates that PFAS concentrations exceed applicable MCLs, public water systems
must take action to reduce PFAS levels and achieve compliance by 2029.
The Public Works Services Department (“PWSD”) regularly monitors the City’s
drinking water supply wells to ensure compliance with applicable water quality
standards and to protect public health. Recent groundwater testing detected PFAS in
all four Orange Grove Wells. The Orange Grove Wells are critical components of the
City’s water supply and distribution system, representing the City’s only source of
water supply from the Santa Anita Subarea of the Raymond Groundwater Basin.
Construction of a PFAS treatment system at the Orange Grove Wells is, therefore, a
priority to maintain the wells as an active and reliable source of water supply and
avoid potential operational shutdown.
Award Design-Build Orange Grove Wells Treatment System
and Facility Improvements
September 1, 2026
Page 3 of 6
To address the PFAS contamination, funding for the design and construction of a
water treatment system at the Orange Grove Wells was included in the Fiscal Year
2025-26 Capital Improvement Program (“CIP”).
To minimize project costs and mitigate the extended lead time associated with
procuring Ion Exchange (“IX”) adsorption systems, PWSD staff elected to procure the
IX adsorption treatment system separately and provide the equipment to the
installer 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 the project will consist of the design and installation of the
associated piping, valves, fittings, backwash tank, and concrete foundation pads. The
contractor will also be responsible for installing the City-provided IX treatment
vessels as part of the overall treatment system.
DISCUSSION
During the Request for Proposals (“RFP”) process for this project, it was determined
that the existing maintenance building at the Orange Grove Well Facility should be
replaced. The maintenance building is necessary for the operation and management
of the on-site well treatment system. The original maintenance building was
constructed in 1997, includes one small restroom, and was designed primarily to
provide storage space for materials. The existing building’s structure is a steel-
framed building with a single-pitch roof and was not originally intended to
accommodate office or management functions. Over time, the interior of the
building has deteriorated, and its existing condition and configuration do not allow
for a cost-effective remodel for a functional office and management space.
Accordingly, the removal and replacement of the existing maintenance building was
incorporated into the project scope.
The existing maintenance building will be replaced with a 1,000-square-foot
prefabricated office building. The new facility will provide appropriate space to
support the operation and management of the treatment system. The facility will
also provide additional office space that can be utilized to support the City’s
emergency response operations.
Award Design-Build Orange Grove Wells Treatment System
and Facility Improvements
September 1, 2026
Page 4 of 6
Additionally, the PWSD determined that the existing electrical service panel at the
Orange Grove Well Facility, which was installed in 1951, has reached the end of its
useful life and requires replacement. The panel is located within the abandoned
booster building and provides electrical service to Booster Stations C, D, E, and F, in
addition to Well 5. Replacement of the electrical service panel is necessary to
maintain reliable electrical service and minimize the risk of operational interruptions
to the wells and booster stations.
Additional facility improvements included in the project scope consist of pavement
improvements, relocation of existing material bins, and installation of exterior pole-
mounted lighting for the treatment plant.
Request for Proposals
On June 15, 2026, a Notice Inviting Proposals for the Design-Build of the Orange
Grove Wells Treatment and Facility Improvements Project was published in
accordance with City Council Resolution No. 7483. Proposal packages were
distributed to firms qualified to provide design-build services. Three proposals were
received by the July 28, 2026, deadline.
Rank Company Name Score Cost
1 Pacific Hydrotech Corporation 97.3% $5,407,800
2 Covenant Technical Solutions 88.6% $6,749,449
3 Metro Builders & Engineers Group, Ltd. 83.3% $6,717,430
All proposals were evaluated based on the proposer’s qualifications, relevant
performance history, technical approach, understanding of the City’s project
requirements, proposed cost, and design-build schedule. Following a comprehensive
evaluation of the proposals, Pacific Hydrotech Corporation was determined to be the
firm most qualified to perform the Orange Grove Wells Treatment System and Facility
Improvements Project.
Pacific Hydrotech Corporation’s proposal demonstrated a thorough understanding
of the project requirements, a sound technical approach, and relevant experience
with similar water treatment and facility improvement projects. The firm has
successfully completed comparable projects for the City of Arcadia, including the Live
Award Design-Build Orange Grove Wells Treatment System
and Facility Improvements
September 1, 2026
Page 5 of 6
Oak Well TCE Treatment System, as well as projects for the City of Ontario and the
Orange County Water District. Based on the overall evaluation, Pacific Hydrotech
Corporation provides the best combination of qualifications, technical approach,
demonstrated experience, and cost to meet the City’s project objectives.
ENVIRONMENTAL ANALYSIS
The installation of an IX treatment system at an existing potable water supply well
facility is categorically exempt from the California Environmental Quality Act (“CEQA”)
pursuant to Class 3, Section 15303(d), which applies to the construction of new, small
structures or facilities in connection with utility extensions or improvements. The
removal and replacement of the maintenance building with a prefabricated office
building is categorically exempt from the CEQA pursuant to Class 2, Section 15302.
Accordingly, a Notice of Exemption has been filed with the County of Los Angeles and
the State Clearinghouse in compliance with applicable CEQA requirements.
FISCAL IMPACT
Funding in the amount of $6,000,000 was included in the Fiscal Year 2025-26 CIP
budget for the Orange Grove Wells Treatment System Project. Funding for the project
is derived from several PFAS settlement proceeds received by the City.
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 $1,927,647.30. Following this expenditure, $4,072,352.70 remains
available in the CIP budget for the design and construction phase of the project.
The proposed design-build contract with Pacific Hydrotech Corporation is
$5,407,800. Including the requested 10% contingency of $540,780, the total project
cost for the design and construction of the Orange Grove Wells Treatment System
and Facility Improvements Project is $5,948,580.
Accordingly, a supplemental budget appropriation of $1,876,227.30 from the PFAS
Settlement Fund is being requested to complete the design and construction phase
of the revised project, including the contingency. Approximately $3,300,000 is
available in the PFAS Settlement Fund for PFAS treatment projects.
Award Design-Build Orange Grove Wells Treatment System
and Facility Improvements
September 1, 2026
Page 6 of 6
RECOMMENDATION
It is recommended that the City Council determine that the project is categorically
exempt from the California Environmental Quality Act (“CEQA”); and adopt Resolution
No. 7710 amending the Fiscal Year 2025-26 Capital Improvement Program Budget,
authorizing a supplemental budget appropriation for the design and construction of
the Orange Grove Wells Treatment Project in the amount of $1,876,227.30, offset by
a reduction in the PFAS Settlement Fund; and approve, authorize, and direct the City
Manager to execute a design-build contract with Pacific Hydrotech Corporation for
the design and construction of the Orange Grove Wells Treatment System and Facility
Improvements Project in the amount of $5,407,800, plus a 10% contingency.
Attachments: Resolution No. 7710
Proposed Design-Build Contract
Project Location Map
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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 Orange Grove PFAS Treatment System and Facility
Improvements 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 architectural services,
and civil structural engineering services, Superior Tank functioning as the subcontractor
team for the Project and providing furnishing and installation of backwash tank services,
and Big Bear Electric functioning as the subcontractor team for the Project and providing
furnishing and installation of electrical and instrumentation, 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
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Notwithstanding the foregoing, the City may accept bonds provided from the member of the
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:
Request for Proposal (“RFP”) and all exhibits, addenda, attachments and
appendices
Design-Build Entity Proposal in response to RFP dated June 15, 2026
Contract
General Conditions
Attachment 1 to this Contract - Cost of Extra Work
Attachment 2 to this Contract - Performance Bond
Attachment 3 to this Contract - Payment Bond
Attachment 4 to this Contract - Workers Compensation Certification
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
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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 FIVE MILLION, FOUR HUNDRED SEVEN
THOUSAND, EIGHT HUNDRED DOLLARS AND NO CENTS ($5,407,800.00) 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 September 30, 2027 (“GCD”).
5.2 The Design-Build Entity agrees that liquidated damages will apply in the
amount of $1,700 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.
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7. Representatives.
7.1 City’s Representative. The City hereby designates Tiffany Lee, 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 [INSERT NAME OF ARCHITECT/ENGINEER] (License No. ___________) 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, consistent with the standards generally recognized as being employed
24347.00600\31594114.1 - 5 - DESIGN-BUILD CONTRACT
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.
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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
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Any notice so given shall be considered received by the other party three (3) days after
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.
SIGNATURES ON NEXT PAGE
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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
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FOR EXTRA WORK
ATTACHMENT 1
HOURLY RATE SCHEDULE FOR EXTRA WORK
NOT APPLICABLE.
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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 Design and Construction of Orange Grove Wells Treatment System and Facility
Improvements Project / Project No. 72863226, 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 FIVE MILLION, FOUR HUNDRED SEVEN
THOUSAND, EIGHT HUNDRED DOLLARS AND NO CENTS ($5,407,800.00), 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.
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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 September 1, 2026, has awarded to Pacific Hydrotech Corporation
hereinafter designated as the “Principal,” a contract for the work described as follows:
Design and Construction of Orange Grove Wells Treatment System and Facility
Improvements Project / Project No. 72863226, 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 FIVE MILLION, FOUR HUNDRED SEVEN
THOUSAND, EIGHT HUNDRED DOLLARS AND NO CENTS ($5,407,800.00) 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
24347.00600\31594114.1 - 16 - PAYMENT (MATERIAL & LABOR) BOND
(Attach Attorney-in-Fact Certificate) Title
24347.00600\31594114.1 - 17 - 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 - 18 - 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.
Name of Design-Build Entity
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 - 19 - PUBLIC WORKS CONTRACTOR
REGISTRATION CERTIFICATION
Signature
Name and Title
Dated