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HomeMy WebLinkAboutAGMT - AKM Consulting Engineers (Engineering Services for Sewer Pump Station 35 Improvements CIP SS1903)PROFESSIONAL SERVICES AGREEMENT for Engineering Services for Sewer Pump Station 35 Improvements CIP SS1903 Between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 M AKM Consulting Engineers 553 Wald Irvine, CA 92618 Phone # (949) 753 -7333 This Professional Service Agreement ( "the Agreement ") is made as of February 26, 2019 (the "Effective Date "), by and between AKM Consulting Engineers ( "Consultant'), a California corporation, and the City of Seal Beach ( "City "), a California charter city, (collectively, "the Parties "). RECITALS A. City desires certain professional services. B. Pursuant to the authority provided by its City Charter and Government Code § 37103, if applicable, City desires to engage Consultant to provide Professional Engineering services in the manner set forth herein and more fully described in Section 1.0. C. Consultant represents that the principal members of its firm are qualified -- professional Engineers and are fully qualified to perform the services contemplated by this Agreement in a good and professional manner; and it desires to perform such services as provided herein. NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows. AGREEMENT 1.OScope of Services 1.1. Consultant shall provide those services ( "Services ") set forth in the attached Exhibit A, which is hereby incorporated by this reference. To the extent that there is any conflict between Exhibit A and this Agreement, this Agreement shall control. 1.2. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City. 1.3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local law. 1.4. As a material inducement to City to enter into this Agreement, Consultant hereby represents that it has the experience necessary to undertake the Services to be provided. In light of such status and experience, Consultant hereby covenants that it shall follow the customary professional standards in performing all Services. The City relies upon the skill of Consultant, and Consultant's staff, if any, to do and perform the Services in a skillful, competent, and professional manner, and Consultant and Consultant's staff, shall perform the Services in such manner. Consultant shall, at all times, meet or exceed any and all applicable professional standards of care. The acceptance of Consultant's work by the City shall not operate as a release of Consultant from such standard of care and workmanship. 2of17 1.5. By executing this Agreement, Consultant represents that, to the extent required by the standard of practice, Consultant (a) has investigated and considered the scope of Services to be performed, (b) has carefully considered how the Services should be performed, and (c) understands the facilities, difficulties and restrictions attending performance of the Services under this Agreement. 1.6. Consultant will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. 2.0 Term This term of this Agreement shall commence as of the Effective Date and shall continue for a term of two (2) years unless previously terminated as provided by this Agreement. 3.0 Consultant's Compensation City will pay Consultant in accordance with the hourly rates shown on the fee schedule set forth in Exhibit A for Services but in no event will the City pay more than $134,279. Any additional work authorized by the City Council pursuant to this Section will be compensated in accordance with the fee schedule set forth in Exhibit A. 4.0 Method of Payment 4.1. Consultant shall submit to City monthly invoices for all services rendered pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end of the month during which the services were rendered and shall describe in detail the services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the services performed for each day in the period. City will pay Consultant within 30 days of receiving Consultant's invoice. City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Consultant. 4.2. Upon 24 -hour notice from City, Consultant shall allow City or City's agents or representatives to inspect at Consultant's offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City's rights under this Section 4.2 shall survive for two years following the termination of this Agreement. 3of17 5.OTermination 5.1. This Agreement may be terminated by City, without cause, or by Consultant based on reasonable cause, upon giving the other party written notice thereof not less than 30 days prior to the date of termination. 5.2. This Agreement may be terminated by City upon 10 days' notice to Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement of comprehensive general liability insurance as required by this Agreement at least 20 days before the expiration date of the previous policy. 5.3. Notice of termination shall be given in accordance with Section 7.0. 6.0 Party Representatives 6.1. The City Manager is the City's representative for purposes of this Agreement. 6.2. Zeki Kayiran, PE is the Consultant's primary representative for purposes of this Agreement. It is expressly understood that the experience, knowledge, capability, and reputation of Zeki Kayiran PE were a substantial inducement for City to enter into this Agreement. Therefore, Zeki Kayiran PE shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. Consultant may not change its representative without the prior written approval of City, which approval shall not be unreasonably withheld. 7.0 Notices 7.1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours after deposit in the United States Mail, first class postage prepaid and addressed to the party at the following addresses: To City: City of Seal Beach 211 -8th Street Seal Beach, California 90740 Attn: City Manager To Consultant: AKM Consulting Engineers 553 Wald Irvine, CA 92618 Attn: Zeki Kayiran 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 4of17 8.0 Personnel Consultant has or shall secure, at its own expense, all personnel required to perform all services under this Agreement. Any person who performs any of the services shall possess the qualifications, permits, and licenses required by state and local law to perform such services. 9.0 Independent Contractor 9.1. Consultant is and shall at all times remain an independent contractor and not an employee of the City. All services provided pursuant to this Agreement shall be performed by Consultant or under its supervision, and all personnel shall possess the qualifications, permits, and licenses required by State and local law to perform such Services, including, without limitation, a City of Seal Beach business license as required by the Seal Beach Municipal Code. Consultant will determine the means, methods, and details of performing the services. Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the services and compliance with the customary professional standards. 9.2. Any additional personnel performing services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 9.3. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from Consultant's personnel practices. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this Section. 10.0 Confidentiality Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written authorization by City. City shall grant such authorization if 5of17 applicable law requires disclosure. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this Section shall survive the termination of this Agreement. 11.0 Subcontractors No portion of this Agreement shall be subcontracted without the prior written approval of the City. Consultant is fully responsible to City for the performance of any and all subcontractors. 12.0 Ownership of Documents and Work Product 12.1. All documents, plans, specifications, reports, information, data, exhibits, photographs, images, video files and media created or developed by Consultant pursuant to this Agreement ( "Written Products ") shall be and remain the property of City without restriction or limitation upon its use, duplication or dissemination by City. All Written Products shall be considered "works made for hire," and all Written Products and any and all intellectual property rights arising from their creation, including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of City without restriction or limitation upon their use, duplication or dissemination by City. Consultant shall not obtain or attempt to obtain copyright protection as to any Written Products. 12.2. Consultant hereby assigns to City all ownership and any and all intellectual property rights to the Written Products that are not otherwise vested in City pursuant to the paragraph directly above this one. 12.3. Consultant warrants and represents that it has secured all necessary licenses, consents or approvals to use any instrumentality, thing or component as to which any intellectual property right exists, including computer software, used in the rendering of the Services and the production of all Written Products produced under this Agreement, and that City has full legal title to and the right to reproduce the Written Products. Consultant shall defend, indemnify and hold City, and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of City officials, harmless from any loss, claim or liability in any way related to a claim that City's use of any of the Written Products is violating federal, state or local laws, or any contractual provisions, or any laws relating to trade names, licenses, franchises, copyrights, patents or other means of protecting intellectual property rights and /or interests in products or inventions. Consultant shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked documents, materials, equipment, devices or processes in connection with its provision of the Services and Written Products produced under this Agreement. In the event the use of any of the Written Products or other deliverables hereunder by City is held to constitute an infringement and the use of any of the same is enjoined, Consultant, at its expense, shall: (1) secure for City the right to continue using the Written Products and other deliverables by [. • MM suspension of any injunction, or by procuring a license or licenses for City; or (2) modify the Written Products and other deliverables so that they become non - infringing while remaining in compliance with the requirements of this Agreement. This covenant shall survive the termination of this Agreement. 12.4. Upon expiration or termination of the Agreement, Consultant shall deliver to City all Written Products and other deliverables related to any Services performed pursuant to this Agreement without additional cost or expense to City. If Consultant prepares a document on a computer, Consultant shall provide City with said document both in a printed format and in an electronic format that is acceptable to City. 13.0 Assignment Consultant shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City. Any purported assignment without such consent shall be void and without effect. 14.0 Inspection and Audit of Records Consultant shall maintain complete and accurate records with respect to all services and other matters covered under this Agreement, including but expressly not limited to, all services performed, salaries, wages, invoices, time cards, cost control sheets, costs, expenses, receipts and other records with respect to this Agreement. Consultant shall maintain adequate records on the services provided in sufficient detail to permit an evaluation of all services in connection therewith. All such records shall be clearly identified and readily accessible. At all times during regular business hours, Consultant shall provide City with free access to such records, and the right to examine and audit the same and to make copies and transcripts as City deems necessary, and shall allow inspection of all program data, information, documents, proceedings and activities and all other matters related to the performance of the services under this Agreement. Consultant shall retain all financial and program service records and all other records related to the services and performance of this Agreement for at least three (3) years after expiration, termination or final payment under this Agreement, whichever occurs later. City's rights under this Section 14.0 shall survive for three (3) years after expiration, termination or final payment under this Agreement, whichever occurs later. 15.0 Safety Requirements All work performed under this Agreement shall be performed in such a manner as to provide safety to the public and to meet or exceed the safety standards outlined by CAL OSHA. The City may issue restraint or cease and desist orders to Consultant when unsafe or harmful acts are observed or reported relative to the performance of the Services. Consultant shall maintain the work sites free of 7of17 hazards to persons and property resulting from its operations. Consultant shall immediately report to the City any hazardous condition noted by Consultant. 16.0 Insurance 16.1. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that Consultant has secured all insurance required under this Section. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements shall be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 16.2. . Consultant shall, at its expense, procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of this Agreement. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and, if required by the City, (3) Professional Liability. Consultant shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage and if Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement /location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Professional Liability: $1,000,000 per claim /aggregate. 16.3. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by the City to state: (1) coverage shall not be suspended, voided, reduced or canceled except after 30 days prior written notice by certified mail, return receipt requested, has been given to the City; (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, (3) coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying coverage and that any insurance or self- insurance maintained by the City, its directors, officials, 8of17 officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall not be called upon to contribute with it; (4) for general liability insurance, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the services or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work; and (5) for automobile liability, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible. 16.4. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. 16.5. Any deductibles or self- insured retentions shall be declared to and approved by the City. Consultant guarantees that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self- insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 17.0 Indemnification, Hold Harmless, and Duty to Defend 17.1. Indemnity for Design Professional Services. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, indemnify and hold harmless the City agents serving as independent contractors in the role of City officials (collectively "Indemnitees" in this Section 17.0), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants and other professionals, and all costs associated therewith, and reimbursement of attorneys' fees and costs of defense (collectively "Claims "), whether actual, alleged or threatened, which arise out of, pertain to, or relate to, in whole or in part, the negligence, recklessness or willful misconduct of Consultant , and /or its officers, agents, servants, employees, subcontractors, contractors or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of design professional services under this Agreement by a "design professional," as the term is defined under California Civil Code § 2782.8(c). 17.2. Other Indemnitees. Other than in the performance of design professional services, and to the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, defend, hold harmless and indemnify the Indemnitees from and against any and all damages, costs, expenses, liabilities, 9of17 claims, demands, causes of action, proceedings, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys and other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively "Damages "), in law or equity, whether actual, alleged or threatened, which arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, subcontractors, materialmen, suppliers, or contractors, or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive negligence, except for Damages arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Damages with counsel of the Indemnitees' choice, and shall pay all costs and expenses, including all attorneys' fees and experts' costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by the Indemnitees in connection therewith. 17.3. Subcontractor Indemnification. Consultant shall obtain executed indemnity agreements with provisions identical to those in this Section 16.0 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnities, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Claims in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant's subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Consultant's subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive negligence, except for Claims or Damages arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties. 17.4. The obligations of Consultant under this or any other provision of this Agreement shall not be limited by the provisions of any workers' compensation act or similar act. Consultant expressly waives any statutory immunity under such statutes or laws as to the Indemnitees. Consultant's indemnity obligation set forth in this Section 17.0 shall not be limited by the limits of any policies of insurance required or provided by Consultant pursuant to this Agreement. 17.5. Consultant's covenants under this Section 17.0 shall survive the expiration or termination of this Agreement. 10 of 17 18.0 Equal Opportunity Consultant affirmatively represents that it is an equal opportunity employer. Consultant shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non - discrimination includes, but is not limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. 19.0 Labor Certification By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code that 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 agrees to comply with such provisions before commencing the performance of the Services. 20.0 Prevailing Wage and Payroll Records If this Agreement calls for services that, in whole or in part, constitute "public works" as defined in the California Labor Code, then Consultant shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit B, attached hereto and incorporated by reference herein. 21.0 Entire Agreement This Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties. 22.0 Severability The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement. 23.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 24.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement. 11 of 17 25.0 Waiver No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 26.0 Prohibited Interests; Conflict of Interest 26.1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services. Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant "financially interested" (as provided in California Government Code § §1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained. 26.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift. 26.3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, non - contractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited "conflict of interest" under applicable laws as described in this subsection 27.0 Attorneys' Fees If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from 12 of 17 the losing party all of its attorneys' fees and other costs incurred in connection therewith. 28.0 Exhibits All exhibits referenced in this Agreement are hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control. 29.0 Corporate Authority The person executing this Agreement on behalf of Consultant warrants that he or she is duly authorized to execute this Agreement on behalf of said Party and that by his or her execution, the Consultant is formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the date and year first above written. CITY OF SEAL BEACH NM I� ®1- ager Approved as or By: Craig A. Steele, City Attorney CONSULTANT: AKM CONSULTING ENGINEERS, a California corporation By: ?,4 Name 7_,Ic; Its: By: Name: M1Ckr4 1[aM„rw) Its: C FI-) (Please note, two signatures required for corporations pursuant to California Corporations Code Section 313.) 13 of 17 EXHIBIT A Consultants Proposal 14 of 17 AKM Consulting Engineers 553 Wald Irvine, CA 92618 Telephone: 949.753.7333 Facsimile: 949.753.7320 www,akmce.com January 31, 2019 City of Seal Beach 2011 Eighth Street Seal Beach, CA 90740 Attn: Mr. Steve Myrter, P.E. Director of Public Works Water Resources Infrastructure Construction Management Subject: Proposal for Engineering Services for Sewer Pump Station 35 Improvements Dear Mr. Myrter: AKM Consulting Engineers (AKM) is pleased to submit this proposal to provide engineering services for upgrades to the City's Pump Station 35. BACKGROUND Pump Station 35 was originally constructed in 1973. It was upgraded in two phases in 2006 and 2007. The upgrades included replacing mechanical and electrical equipment, as well as re -ling of the wet well, site improvements, and constructing a bypass pumping connection in a vault on the force main, which allowed bypassing the pump station during the lining of the screen vault and the wet well. The pump station piping has experienced leaks in the dry well. The equipment is nearing the end of its useful life, and needs to be updated. Additionally, while there is abypass pumping connection, the sewage has to be pumped from the existing manhole just upstream of the pump station wet well. This requires the sewage to back up into the upstream collection system, which is not desirable. A separate bypass pumping wet well deeper than the pump station's influent sewer needs be constructed, which would eliminate the need to back up sewage into the collection system during a bypass pumping operation. The City does not have pump station maintenance manual documenting the proper operation of the pump station, and maintenance of the equipment. The purpose of the project is to Prepare contract documents for the construction of a bypass pumping system, and replacement of the piping and valves in the dry well Prepare pump station maintenance manual The scope of work for the project will consist of the following tasks: 1. Project Management and Meetings We will start the meeting with a kickoff meeting to review and refine the scope of work, establish lines of communication, and discuss the initial schedule. AKM Propoaab 19 -102 5 �a I®® IBM ® mom A AKM Consulting Engineers 553 Wald Irvine, CA 92618 Telephone: 949.753.7333 Facsimile: 949.753.7320 www,akmce.com January 31, 2019 City of Seal Beach 2011 Eighth Street Seal Beach, CA 90740 Attn: Mr. Steve Myrter, P.E. Director of Public Works Water Resources Infrastructure Construction Management Subject: Proposal for Engineering Services for Sewer Pump Station 35 Improvements Dear Mr. Myrter: AKM Consulting Engineers (AKM) is pleased to submit this proposal to provide engineering services for upgrades to the City's Pump Station 35. BACKGROUND Pump Station 35 was originally constructed in 1973. It was upgraded in two phases in 2006 and 2007. The upgrades included replacing mechanical and electrical equipment, as well as re -ling of the wet well, site improvements, and constructing a bypass pumping connection in a vault on the force main, which allowed bypassing the pump station during the lining of the screen vault and the wet well. The pump station piping has experienced leaks in the dry well. The equipment is nearing the end of its useful life, and needs to be updated. Additionally, while there is abypass pumping connection, the sewage has to be pumped from the existing manhole just upstream of the pump station wet well. This requires the sewage to back up into the upstream collection system, which is not desirable. A separate bypass pumping wet well deeper than the pump station's influent sewer needs be constructed, which would eliminate the need to back up sewage into the collection system during a bypass pumping operation. The City does not have pump station maintenance manual documenting the proper operation of the pump station, and maintenance of the equipment. The purpose of the project is to Prepare contract documents for the construction of a bypass pumping system, and replacement of the piping and valves in the dry well Prepare pump station maintenance manual The scope of work for the project will consist of the following tasks: 1. Project Management and Meetings We will start the meeting with a kickoff meeting to review and refine the scope of work, establish lines of communication, and discuss the initial schedule. AKM Propoaab 19 -102 5 We will submit monthly progress status reports along with our invoices, and meet with City staff to review the progress and obtain additional information /direction. We will conduct weekly in -house quality control review of the project, and address any issues that may be identified. 2. Obtain and review all as -built utility plans We will obtain the water, sewer, and storm drain information from the City, and gas, electric, telephone, and cable facility information from the respective owners. We will maintain a utility coordination log to ascertain that appropriate communication has taken place. We will verify the visible facilities during field walk of the facility. 3. Geotechnical Investigation We will conduct a geotechnical investigation to develop design recommendations for bedding, backfill, shoring, and dewatering required for the bypass pumping system. The field work will include one boring near the pump station extending to 51 feet below the ground surface. 4. Prepare Plans, Specifications, and Estimates for Bypass Pumping System and Dry Well Mechanical Improvements We will prepare plans for installation of a diversion manhole on the existing 24 -inch diameter sewer with a gate, diversion piping, and bypass pumping wet well. The bypass pumping wet well will be an approximately 10 -ft diameter circular structure constructed of pre -cast reinforced concrete walls and a cast -in -place base. We will review access to the structure during future bypass operations with the City staff, as well as any permanent piping depending upon the pumping equipment the City prefers. We will prepare plans for replacement of the piping, valves, sump pump and its piping, and appurtenances in the dry well. We expect to develop 9 plan sheets for the project, consisting of: 1. Title Sheet 2. General Notes and Construction Notes; Sheet Index 3. Bypass Piping System Plan 4. Bypass Piping System Profile /Sections 5. Details - Bypass pumping system 6. Dry Well Demolition Plan and Section 7. Dry Well Mechanical Plan B. Dry Well Mechanical Sections 9. Details (Dry Well Mechanical) We will review the development of the plans with the City staff at progress review meetings, and submit them at the 70% completion stage, along with technical specifications and construction cost estimate. We will address the City's comments, and finalize the documents. 5. Project Close -out We will prepare as -built drawings based upon the redlines provided by the construction contractor and the City's inspector. 19-1025 6. Bidding Assistance We will attend a pre -bid meetingto describe the project and respond to requests for information, and issue an addendum, if necessary. 7. Engineering Support During Construction We will attend the pre - construction meeting, review shop drawing submittals, and respond to requests for information during the construction. B. Prepare Pump Station Maintenance Manual This task will consist of utilizing the operation and maintenance manuals prepared by the construction contractor and its suppliers, as well as the contract documents, to prepare a manual for the City staff for use in regular maintenance of the pump station mechanical and electrical equipment. The manual will describe the maintenance activities as well as recommended frequencies. We propose to complete tasks 1 through 4 of the above scope of work within 18 weeks from notice to proceed. We will complete tasks 5 through 7 as required by the progress of the work. We will complete Task 8 within 8 weeks of the completion of the construction. ';FEE ESTIMATE To complete the above detailed scope of work, we estimate a budget of $134,279 will be required. The work will be performed on a time and materials basis, in accordance with AKM's billing rates. AKM will not exceed the authorized budget without written approval from the City. Breakdown of the fee estimate for the project, including workhours, is shown in the table below. Proposed Fee Estimate Task Description Project Manager Project Engineer Associate Engineer CADD Group Clerical Total Hours Labor Cost Subconsultant Cost/ Expenses Total Cost 1 Project Management /Meetings 16 B 24 $4,864 $4,864 2 Research, Utility Coordination 4 8 12 $1,904 $1,904 3 Geotechnical Investigation 4 4 4 B 20 $2,952 $18,343 $21,295 4 Plans, Specifications, and Estimates 40 120 144 144 32 480 1 $68,272 $3,000 $71,272 5 Project Close -out 2 4 16 22 $2,520 1 $2,520 6 Bidding Assistance 4 4 4 4 4 20 $2,840 $2,840 7 Engineering Support During Construction 12 24 24 60 $10,536 $1,000 $11,536 B Prepare Pump Station Maintenance Manual 24 24 40 40 128 $18,048 $1,000 $19,048 Total Hours 76 166 188 172 36 766 i Hourly Rare $206 $196 $140 $98 $70 TOTAL $15,656 $32,536 $26,320 $16,856 $2,520 $111,936 $22,343 $134,279 AKM Propolai, 19 -102 5 We appreciate the opportunity to submit this proposal, and look forward to being of service to the city of Seal Beach. Should you have any questions regarding our proposal or require additional information, please do not hesitate to contact the undersigned. Very truly yours, AKM Consulting Engineers Zeki Kayiran, RE. Principal AKM Propasa.t19 -1025 EXHIBIT B TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS 1. This Agreement calls for services that, in whole or in part, constitute "public works" as defined in Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code ( "Chapter 1 "). Further, Consultant acknowledges that this Agreement is subject to (a) Chapter 1 and (b) the rules and regulations established by the Department of Industrial Relations ( "DIR ") implementing such statutes. Therefore, as to those Services that are "public works ", Consultant shall comply with and be bound by all the terms, rules and regulations described in 1(a) and 1(b) as though set forth in full herein. 2. California law requires the inclusion of specific Labor Code provisions in certain contracts. The inclusion of such specific provisions below, whether or not required by California law, does not alter the meaning or scope of Section 1 above. 3. Consultant shall be registered with the Department of Industrial Relations in accordance with California Labor Code Section 1725.5, and has provided proof of registration to City prior to the Effective Date of this Agreement. Consultant shall not perform work with any subcontractor that is not registered with DIR pursuant to Section 1725.5. Consultant and subcontractors shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If Consultant or any subcontractor ceases to be registered with DIR at any time during the duration of the project, Consultant shall immediately notify City. 4. Pursuant to Labor Code Section 1771.4, Consultant's Services are subject tc compliance monitoring and enforcement by DIR. Consultant shall post job site notices, as prescribed by DIR regulations. 5. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made available to any interested party on request. Consultant acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Consultant shall post such rates at each job site covered by this Agreement. 6. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. Consultant shall, as a penalty to City, forfeit $200.00 for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subcontractor. 7. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in 15 of 17 Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records. 8. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Administrative Code of Regulations, Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within 60 days after concluding work pursuant to this Agreement, Consultant and each of its subcontractors shall submit to City a verified statement of the journeyman and apprentice hours performed under this Agreement. 9. Consultant shall not perform Work with any Subcontractor that has been debarred or suspended pursuant to California Labor Code Section 1777.1 or any other federal or state law providing for the debarment of contractors from public works. Consultant and subcontractors shall not be debarred or suspended throughout the duration of this Contract pursuant to Labor Code Section 1777.1 or any other federal or state law providing for the debarment of contractors from public works. If Consultant or any subcontractor becomes debarred or suspended during the duration of the project, Consultant shall immediately notify City. 10. Consultant acknowledges that eight hours labor constitutes a legal day's work. Consultant shall comply with and be bound by Labor Code Section 1810. Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. Consultant shall, as a penalty to City, forfeit $25.00 for each worker employed in the performance of this Agreement by Consultant or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code sSection 1815, work performed by employees of Consultant in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one -half times the basic rate of pay. 11. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Consultant hereby certifies as follows: "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." 12. For every subcontractor who will perform work on the project, Consultant shall be responsible for such subcontractor's compliance with Chapter 1 and Labor Code 16 of 17 Sections 1860 and 3700, and Consultant shall include in the written contract between it and each subcontractor a copy of those statutory provisions and a requirement that each subcontractor shall comply with those statutory provisions. Consultant shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor's compliance, including without limitation, conducting a periodic review of the certified payroll records of the subcontractor and upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Consultant shall diligently take corrective action to halt or rectify any failure. 13. To the maximum extent permitted by law, Consultant shall indemnify, hold harmless and defend (at Consultant's expense with counsel reasonably acceptable to City) City, its officials, officers, employees, agents and independent contractors serving in the role of City officials, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed above by any person or entity (including Consultant, its subcontractors, and each of their officials, officers, employees and agents) in connection with any work undertaken or in connection with the Agreement, including without limitation the payment of all consequential damages, attorneys' fees, and other related costs and expenses. All duties of Consultant under this Section shall survive the termination of the Agreement. 17 of 17 ACOR"0 CERTIFICATE OF LIABILITY INSURANCE DATE,MMND YYYY) Ill 1 3120/2019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: Nancy Ferrick Dealey, Renton & Associates PHONE FAX License # 0020739 lac rle EXh. 510 - 465 -3090 INC No) 510452 -2193 E-MAIL ADDRESS nferrick @dealeyrenton.com P. O. Box 12675 Oakland CA 94604 -2675 INSURER(S) AFFORDING COVERAGE NAIC# INSURER A: Sentinel Insurance Co. LTD 11000 INSURED AKMCONSUL INSURER B : Trumbull Insurance Company­ 27120 Consulting Engineers, Inc. DAMAGE TORENTED PREMISES IEaoccurrence 553 Wald Street 553 INSURER C: Travelers Casual & Surety Co. America 31194 INSURER D: Irvine CA 92618 -4627 INSURER E INSURER F COVERAGES CERTIFICATE NUMBER: 1421709369 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INS. R TYPE OF INSURANCE ADDLI MD POLICYNUMBER MM/DDYIYYYY MMIDD FXP LIMITS A X COMMERCIAL GENERAL LIABILITY Y V 57SBWLUB719 9/20/2018 912012019 EACH OCCURRENCE 52,000,000 Cl-AIMS-MADE OCCUR DAMAGE TORENTED PREMISES IEaoccurrence $1,000,000 MED EXP (Any one person) $10,000 PERSONAL& ADV INJURY $2,000,000 AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $4,000,000 GEN'L POLICY�jET [:] LOC PRODUCTS - COMPIOP AGO $4000000 $ OTHER: A Y V 57SBVVLUB719 9/20/2118 9/20/2019 COMBINED SINGLE LIMIT $2,000,000 BODILY INJURY(Per person) ANY AUTO JAUTOMOBILELIABIUTY OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY (Per acdtlent) E PROs eRtlTY DAMAGE $ AUTOS ONLY X gONOOWONLD $ I A X I UMBRELLA LIAB X OCCUR Y Y 57SBVVLUB719 9/20/2018 912012019 EACH OCCURRENCE $1000000 AGGREGATE $1,000,000 EXCESS LIAR CLAIMS -MADE F—FDEO I RETENTIONS $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN ANVPROPMETORIPARTNERIEXECUTIVE V 57WEGZS0250 9(2012018 912012019 X PER 1OTH- STATUTE ER E.L. EACH ACCIDENT $1,000,000 OFFICERIMEMBER EXCLUDED? NIA EL .DISEASE - EA EMPLOYEE $1,000,000 (Mandatory in NH) If yes describe under DESCRIPTION OF OPERATIONS below EL .DISEASE - POLICY LIMIT $1,000,000 C Prolessional Liability 105344511 912012018 912012019 $2,000.000 per Claim $2,000,000 Annual Aggregate DESCRIPTION OF OPERATIONS / LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Re: All Operations of the Named Insured. City of Seal Beach, its elected and appointed officers, officials, employees, servants, attorneys, agents, designated volunteers and those City agents serving as independent contractors in the role of City officials are named as additional insureds for General and Auto Liability. Insurance is Primary and Non- Contnbutory per policy form. Severability of Interest applies to the General Liability policy. Waiver of Subrogation applies to the General Liability, Auto Liability and Worker's Compensation. 30 Days Notice of Cancellation. CERTIFICATE HOLDER CANCELLATION 30 Days Notice of Cancellation ACORD 25 (2016/03) © 1988 -2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. City of Seal Beach 211 Eighth Street Seal Beach CA 90740 AUTHORIZEDREPRESENTATIVE ACORD 25 (2016/03) © 1988 -2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD Policy Number: 57SBWLU8719 EXCERPTS FROM: Hartford Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM C. WHO IS AN INSURED 6. Additional Insureds When Required By Written Contract, Written Agreement Or Permit The person(s) or organization(s) identified in Paragraphs a. through I. below are additional insureds when you have agreed, in a written contract, written agreement or because of a permit issued by a state or political subdivision, that such person or organization be added as an additional insured on your policy, provided the injury or damage occurs subsequent to the execution of the contract or agreement, or the issuance of the permit. A person or organization is an additional insured under this provision only for that period of time required by the contract, agreement or permit. I. Any Other Party (t) Any other person or organization who is not an insured under Paragraphs a. through e. above, but only with respect to liability for "bodily injury, "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf. (a) In the performance of your ongoing operations; (b) In connection with your premises owned by or rented to you; or (c) In connection with "your work" and included within the "products- completed operations hazard, but only if (i) The written contract or written agreement requires you to provide such coverage to such additional insured; and (ii) This Coverage Part provides coverage for "bodily injury" or "property damage" included within the "products - completed operations hazard. (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: "Bodily injury, "property damage" or "personal and advertising injury" arising out of the rendering of, or the failure to render, any professional architectural, engineering or surveying services, including: inspection, or engineering E.S. Separation of Insureds Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this policy to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom a claim is made or "suit" is brought. E.7.b.(7).(b) Primary And Non - Contributory To Other Insurance When Required By Contract If you have agreed in a written contract, written agreement or permit that this insurance is primary and non - contributory with the additional insured's own insurance, this insurance is primary and we will not seek contribution from that other insurance. E.8.b. Waiver Of Rights Of Recovery (Waiver Of Subrogation) If the insured has waived any rights of recovery against any person or organization for all or part of any payment, including Supplementary Payments, we have made under this Coverage Part, we also waive that right, provided the insured waived their rights of recovery against such person or organization in a contract, agreement or permit that was executed prior to the injury or damage. EXCERPT FROM Hartford Form SS 04 38 09 09 HIRED AUTO AND NON -OWNED AUTO B. With respect to the operation of a "non-owned auto ", WHO IS AN INSURED is replaced by the following: The following are "insureds ": d. Anyone liable for the conduct of an "insured ", but only to the extent of that liability. Insured: Policy Number: AKM Consulting Engineers, Inc. 57wEGZ80250 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT - CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be % of the California workers' compensation premium otherwise due on such remuneration. SCHEDULE Person or Organization Any person or organization from whom you are required by written contract or agreement to obtain this waiver of rights from us Countersigned by Authorized Representative Form WC 04 03 06 (1) Printed in U.S.A. Process Date: Policy Expiration Date: City �4'S�P�� City Hall 211 8'h Street Seal Beach, CA 90740-6379 (562) 43 1 -2527 Est. 1314 or 1332 Email_ Bus inessLicense ¢ sealbeachea.gov License Issued To: AKM Consulting Engineers 553 Wald Irvine, CA 92618 Owner's /Agent's Name: Zeki Kaviran Lic. Type: General Business License I icense #: AKM0001 POST IN A CONSPICUOUS PLACE— NOT TRANSFERABLE City of Seal Beach Ordinance NO. 1653 The business license tax imposed by the Chapter shall not apply to any business which has gross annual receipts of $25,000 or less in the one year period immediately preceding the issuance of a business license. To establish eligibilty for the for this exemption, the business shall provide such documentation as requested by the Director of Finance including, without limitation, tax returns, and financial documentation. The Director of Finance shall establish such policies and procedures as are necessary to implement the exemption granted herein. Any business operating in the City with gross receipts of more than $25,000 annually shall pay the full amount of the applicable business tax. In order to detennine exemption eligibility, a copy of this completed form, a $25.00 processing fee, and a copy of one of the following Federal Tax Returns must be submitted: EXEMPTION REQUIREMENTS: 2017 Federal Tax Returns • Schedule C (Form 1040) — Profit or Loss From Business (Sole Proprietorship ): or • Schedule E (Form 1040) — Supplemental Income and Loss (From Rental Real Fstate, Rgval ties, Partnerships, S Corporations, Estates, Trusts, etc.): or • Schedule C -EZ (Form 1040) —Net Profit From Business (Sole Proprietorship): or • Form 1065 — U.S. Return of Partnership Income. Please note: All Independent Contractors within an establishment are required to apply for a city business license. Independent Contractors are those who work on the premises whose Federal /State income taxes are not typically withheld by the employer /business owner and receive an annual Federal Income Tax Form 1099. Customer #: 0040057 Expires: June 30, 2019 'Date Printed: 06114/2018 Musiness License ` Business Location: `�-:C,;j 553 Wald Irvine CA 92618 Business Type: !-i Consulting Business Class: - -'' Management Consulting Services (human resources and personnel management consulting) POST IN A CONSPICUOUS PLACE— NOT TRANSFERABLE City of Seal Beach Ordinance NO. 1653 The business license tax imposed by the Chapter shall not apply to any business which has gross annual receipts of $25,000 or less in the one year period immediately preceding the issuance of a business license. To establish eligibilty for the for this exemption, the business shall provide such documentation as requested by the Director of Finance including, without limitation, tax returns, and financial documentation. The Director of Finance shall establish such policies and procedures as are necessary to implement the exemption granted herein. Any business operating in the City with gross receipts of more than $25,000 annually shall pay the full amount of the applicable business tax. In order to detennine exemption eligibility, a copy of this completed form, a $25.00 processing fee, and a copy of one of the following Federal Tax Returns must be submitted: EXEMPTION REQUIREMENTS: 2017 Federal Tax Returns • Schedule C (Form 1040) — Profit or Loss From Business (Sole Proprietorship ): or • Schedule E (Form 1040) — Supplemental Income and Loss (From Rental Real Fstate, Rgval ties, Partnerships, S Corporations, Estates, Trusts, etc.): or • Schedule C -EZ (Form 1040) —Net Profit From Business (Sole Proprietorship): or • Form 1065 — U.S. Return of Partnership Income. Please note: All Independent Contractors within an establishment are required to apply for a city business license. Independent Contractors are those who work on the premises whose Federal /State income taxes are not typically withheld by the employer /business owner and receive an annual Federal Income Tax Form 1099.