DATE: JUNE 7, 2005


STAFF COORDINATOR: Ron Dragoo, Senior Engineer


  1. Award a contract to PSOMAS, for Construction Inspection services in an amount not to exceed $18,400.
  2. Authorize the Mayor and City Clerk to execute a contract with PSOMAS.


The Plans and Specifications to line 11 storm drains were approved and a construction contract awarded to Sancon Technologies, Inc. at the April 5, 2005 City Council meeting. The City Council also authorized services for inspection to Charles Abbott and Associates, Inc. Following authorization of inspection services for Charles Abbott and Associates, Inc., staff determined that this firm does not currently have the appropriate staff to provide this needed service. Staff researched firms capable of providing these services and found that PSOMAS has the appropriate staff to provide the needed inspection services.

The following table summarizes the estimated costs to provide inspection services as of May 31, 2005:


Inspection Company

Hourly Rate

Hours Needed

Total Cost

Charles Abbott and Associates, Inc.








The City reviewed PSOMAS’s references regarding inspection services provided for other cities in the Los Angeles area and Staff is satisfied with the work performed by PSOMAS. It is hereby recommended that Council authorize the Mayor and City Clerk to execute a contract with PSOMAS for inspection services for the Rancho Palos Verdes Storm Drain Rehabilitation Project.


Adopting staff’s recommendation will allow the Mayor and City Clerk to award a contract to PSOMAS, for inspection services for the Rancho Palos Verdes Storm Drain Rehabilitation Project.


Funding is available in the adopted budget for the recommended action.

Submitted by,

Dean E. Allison

Director of Public Works


Les Evans

City Manager

Attachment: Professional Services Agreement


THIS AGREEMENT is made and entered into this 6th day of June, 2005, by and between CITY OF RANCHO PALOS VERDES hereinafter referred to as "CITY", and PSOMAS hereafter referred to as "CONSULTANT".

IN CONSIDERATION of the covenants hereinafter set forth, the parties hereto mutually agree as follows:



1.1 Project Description

The Project is described as follows:

Provide inspection and construction management services to monitor the construction of the Rancho Palos Verdes Storm Drain Rehabilitation project, installing storm drain liners, cleaning, grouting, point repairs, video inspection and all items not mentioned but indicated in the Plans and Specifications which are attached hereto as Exhibit A incorporated herein by this reference.

1.2 Description of Services

CONSULTANT shall perform construction inspection services as required to complete the project as defined in Article 1.1

1.3 Schedule of Work

Upon receipt of written Notice to Proceed from the CITY, CONSULTANT shall perform with due diligence the services requested by the CITY and agreed on by CONSULTANT. CONSULTANT shall not be responsible for delay, nor shall CONSULTANT be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of CITY to furnish timely information or to approve or disapprove CONSULTANT'S work promptly, or delay or faulty performance by CITY, other contractors, or governmental agencies, or any other delays beyond CONSULTANT'S control or without CONSULTANT'S fault.



2.1 Fee

(a) CITY agrees to compensate CONSULTANT a not to exceed amount of $12,000 for the Inspection services which will be billed on an hourly basis at $70.00 per hour.

(b) CITY may request additional specified work under this agreement. All such work must be authorized in writing by the Director of Public Works prior to commencement.

2.2 Payment Address

All payments due CONSULTANT shall be paid to:


3187 Red Hill Avenue, Suite 250

Costa Mesa, CA 92626

2.3 Terms of Compensation

CONSULTANT will submit invoices monthly for the hours of work performed in the previous month. CITY agrees to pay all undisputed invoice amounts within thirty (30) days of receipt of the invoice. CITY agrees to use its best efforts to notify CONSULTANT of any disputed invoice amounts or claimed completion percentages within ten (10) days of the receipt of each invoice. However, CITY's failure to timely notify CONSULTANT of a disputed amount of claimed completion percentage shall not be deemed a waiver of CITY's right to challenge such amount or percentage.

Additionally, in the event CITY fails to pay any undisputed amounts due CONSULTANT within forty-five (45) days after invoices are received by CITY then CITY agrees that CONSULTANT shall have the right to consider said default a total breach of this Agreement and be terminated by CONSULTANT without liability to CONSULTANT upon ten (10) working days advance written notice.

2.4 Additional Services

CITY may request in writing that CONSULTANT perform additional services not covered by the specific Scope of Work set forth in this Agreement, and CONSULTANT shall perform such services and will be paid for such additional services in accordance with CONSULTANT'S Standard Schedule of Hourly Rates attached hereto as part of Exhibit B and incorporated herein by this reference. The schedule of hourly rates shall be in effect through the end of this project or December 31, 2005 whichever occurs first.



3.1 Indemnification

CONSULTANT will defend, indemnify and hold harmless CITY, its Boards and its officers, employees and agents (collectively "CITY"), against any claim, loss or liability that arises because of the sole or primary negligence or willful misconduct of CONSULTANT, its agents, officers, directors or employees, in performing any of the services under this Agreement.

3.2 General Liability

CONSULTANT shall at all times during the term of the Agreement carry, maintain, and keep in full force and effect, a policy or policies of Commercial General Liability Insurance, with minimum limits of One Million ($1,000,000.00) Dollars for each occurrence and in the aggregate, combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by CONSULTANT. Said policy or policies shall be issued by an insurer admitted to do business in the State of California and rated in Moody's Insurance Guide with a rating of A or better.

3.3 Professional Liability

CONSULTANT shall at all times during the term of this Agreement, carry, maintain, and keep in full force and effect a policy or policies of professional liability insurance with a minimum limit of one million ($1,000,000.00) dollars. Said policy or policies shall be issued by an insurer admitted to do business in the State of California and rated in Moody's A.

3.4 Worker's Compensation

CONSULTANT agrees to maintain in force at all times during the performance of work under this Agreement worker's compensation insurance as required by the law. CONSULTANT shall require any subcontractor similarly to provide such compensation insurance for their respective employees.

3.5 Notice of Cancellation

A. All insurance policies shall provide that the insurance coverage shall not be canceled by the insurance carrier without thirty (30) days prior written notice to CITY. CONSULTANT agrees that it will not cancel or reduce said insurance coverage.

B. CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect, CITY may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay, at CONSULTANT's expense, the premium thereon.

3.6 Certificate of Insurance

At all times during the term of this Agreement, CONSULTANT shall maintain on file with the CITY Clerk a certificate of insurance showing that the aforesaid policies are in effect in the required amounts. The commercial general liability and professional liability policy or policies shall contain endorsements naming the CITY, its officers, agents and employees as additional insured.

3.7 Primary Coverage

The insurance provided by CONSULTANT shall be primary to any coverage available to city. The insurance policies (other than workers' compensation and professional liability) shall include provisions for waiver of subrogation.



4.1 Termination of Agreement

(a) This Agreement may be terminated at any time, with or without cause, by either party upon sixty (60) days prior written notice. Notice shall be deemed served upon deposit in the United States Mail of a certified or registered letter, postage prepaid, return receipt requested, addressed to the other party, or upon personal service of such notice to the other party.

(b) In the event of termination or cancellation of this Agreement by CONSULTANT or CITY, due to no fault or failure of performance by CONSULTANT, CONSULTANT shall be paid compensation for all services performed by CONSULTANT, in an amount to be determined as follows: for work done in accordance with all of the terms and provisions of this Agreement, CONSULTANT shall be paid an amount equal to the percentage of services performed prior to the effective date of termination or cancellation in accordance with the work items; provided, in no event shall the amount of money paid under the foregoing provisions of this paragraph exceed the amount which would have been paid to CONSULTANT for the full performance of the services described in Article 1.2.



5.1 Ownership of Documents and Work Product

All plans, specifications, reports and other design documents prepared by CONSULTANT pursuant to this Agreement are instruments of service, which shall be deemed the property of the CITY. CITY acknowledges and agrees that all plans, specifications, reports and other design documents prepared by CONSULTANT pursuant to this Agreement shall be used exclusively on this Project and shall not be used for any other work without the written consent of CONSULTANT. In the event CITY and CONSULTANT permit the reuse or other use of the plans, specifications, reports or other design documents, CITY shall require the party using them to indemnify and hold harmless CITY and CONSULTANT regarding such reuse or other use, and CITY shall require the party using them to eliminate any and all references to CONSULTANT from the plans, specifications, reports and other design documents. If a document is prepared by CONSULTANT on a computer, CONSULTANT shall prepare such document in a Microsoft® Word 97 SR-2 or lower format; in addition, CONSULTANT shall provide CITY with said document both in a printed format and on a three and one-half inch (3 1/2") floppy diskette.



6.1 Representation

A CITY representative shall be designated by the City Manager and a CONSULTANT representative shall be designated by CONSULTANT as the primary contact person for each party regarding performance of this Agreement.

6.2 Fair Employment Practices/Equal Opportunity Acts

In the performance of this Agreement, CONSULTANT shall comply with all applicable provisions of the California Fair Employment Practices Act (California Government Code Sections 12940-48) and the applicable equal employment provisions of the Civil Rights Act of 1964 (42 U.S.C. 200e-217), and the Americans with Disabilities Act of 1992 (42 U.S.C. 11200, et seq.).

6.3 Personnel

CONSULTANT represents that it has, or shall secure at its own expense, all personnel required to perform CONSULTANT's services under this Agreement. Any person who performs engineering services pursuant to this Agreement shall be licensed as a Civil Engineer by the State of California and in good standing. CONSULTANT shall make reasonable efforts to maintain the continuity of CONSULTANT's staff who are assigned to perform the services hereunder and shall obtain the approval of the Director of Public Works of all proposed staff members who will perform such services. CONSULTANT may associate with or employ associates or subconsultants in the performance of its services under this Agreement, but at all times shall be responsible for their services.

6.4 Conflicts of Interest

CONSULTANT agrees not to accept any employment or representation during the term of this Agreement or within twelve (12) months after completion of the work under this Agreement which is or may likely make CONSULTANT "financially interested" (as provided in California Government Code Section 1090 and 87100) in any decisions made by CITY on any matter in connection with which CONSULTANT has been retained pursuant to this Agreement.

6.5 Legal Action

(a) Should either party to this Agreement bring legal action against the other, the case shall be brought in a court of competent jurisdiction in Los Angeles County, California, and the party prevailing in such action shall be entitled to recover its costs of litigation, including reasonable attorneys' fee which shall be fixed by the judge hearing the case and such fee shall be included in the judgment.

(b) Should any legal action about the Project between CITY and a party other than CONSULTANT require the testimony of CONSULTANT when there is no allegation that CONSULTANT was negligent, CITY shall compensate CONSULTANT for its testimony and preparation to testify at the hourly rates in effect at the time of such testimony.

6.6 Assignment

This Agreement shall not be assignable by either party without the prior written consent of the other party.

Notwithstanding the above, CONSULTANT may use the services of persons and entities not in CONSULTANT'S direct employ, when it is appropriate and customary to do so. Such persons and entities include, but are not necessarily limited to, surveyors, specialized consultants, and testing laboratories. CONSULTANT'S use of subcontractors for additional services shall not be unreasonably restricted by the CITY provided CONSULTANT notifies the CITY in advance.

6.7 Independent Contractor

CONSULTANT is and shall at all times remain, as to the CITY, a wholly independent CONTRACTOR. Neither the CITY nor any of its agents shall have control over the conduct of CONSULTANT or any of the CONSULTANT's employees, except as herein set forth. CONSULTANT expressly warrants not to, at any time or in any manner, represent that it, or any of its agents, servants or employees, are in any manner agents, servants or employees of CITY, it being distinctly understood that CONSULTANT is, and shall at all times remain to CITY, a wholly independent contractor and CONSULTANT's obligations to CITY are solely such as are prescribed by this Agreement.

6.8 Hazardous Materials

Unless otherwise provided in this Agreement, CONSULTANT and its subconsultants and/or contractors shall have no responsibility for the discovery, presence, handling, removal or disposal of, or exposure of persons to hazardous materials in any form at the site of the Project.

6.9 Titles

The titles used in this Agreement are for general reference only and are not part of the Agreement.

6.10 Extent of Agreement

This Agreement represents the entire and integrated Agreement between CITY and CONSULTANT and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified or amended only by a subsequent written agreement signed by both parties.

6.11 Notices

All notices pertaining to this Agreement shall be in writing and addressed as follows:


Mr. Barry Safa, Senior Project Manager


3187 Red Hill Avenue, Suite 250

Costa Mesa, CA 92626

If to CITY:

Mr. Dean E. Allison, Director of Public Works

City of Rancho Palos Verdes

30940 Hawthorne Blvd.

Rancho Palos Verdes, CA 90275

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written.





A Municipal Corporation



City of Rancho Palos Verdes