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HomeMy WebLinkAboutStaff Report 5.B 2/24/2014 A gentacv Itenw#5 .3 wip L tr4r rase DATE: February 24, 2014 TO: Honorable Mayor and Members of the City Council through City Manager ' FROM: Dan St J —E; ,, to or; Public Works and Utilities ' Larry Zimme , P: . Capital Projects Manager SUBJECT: Resolution Authorizing;the City Manager to Execute an Agreement for Partial Funding of the.Denman Reach Phase 3 Project with the Sonoma County Water Agency RECOMMENDATION • ' Itis recommended that the City Council adopt the attached Resolution Authorizing the City Manager to Execute an Agreement for Partial Funding of the Denman Reach Phase 3 Project with the Sonoma County Water Agency. BACKGROUND There are five properties affected:by the construction of Denman Reach.Phase 3, three of which are the vacant parcels located'on the west side of Industrial Avenue directly across from the intersection of Benson Way and Industrial Avenue. Through acquisition of two of the parcels and,the granting,of temporary`construction and permanent trail easements of the other three parcels, the project has the potential to complete the terracing.and trail between Corona Road and the intersection of Industrial Avenue and Petaluma Boulevard'North. Placing flood terracing within the Petaluma Watershed in concert with the development of a river and creek front trail system was envisioned in the 1996`River Access,and Enhancement Plan and was adopted as a policy in the General Plan 2025 in 2008:.Once completed, the three phases Denman Reach will meet this policy and provide an opportunity to develop a stewardship program with area businesses,and:residents. Phases 1 and 2 were completed in2005•and are not discussed:further'within;this,report. In the fall of 2008,the City submitted a two-part,grant application to the State of California for land acquisition and continuation of the flood terrace, riparian habitat enhancement and trail improvements within the Denman Reach: The first grant application was to the California • Natural Resources Agency's (NRA) River Parkways,Program for land acquisition for up to three parcels inthesantount of.$1,150;000,which'was partially funded at $850,000. The second application was to the Department of Water Resources' (DWR) Urban Streams Restoration Agenda Reviesy City Attorniy,/'^-" Finance Director City Manage��--\ Program for $993,375, which was fully funded for design and construction. One oldie three vacant parcels, the 5.84 acre (1375 Industrial Avenue, Richards/Gilson)'parcel was acquired in September 2013.,Following Council direction to pursue land;acquisition,grants, requests for additional,funding'resulted in the NRA grant being augmented with an additional$165,262. bringing the landhacquisition grant'to $1,015,262. Negotiations continue toward the purchase of the second 2 acre parcel (1335 Industrial Avenue, Gateway Financial/Coyne). A temporary construction'easement is being=executed for the third vacant parcel. Of the three remaining parcels, which will not be acquired, one has signed the necessary property rights agreements, and the other two are in verbal agreement: The Sonoma County Water Agency (SCWA) Zone 2A committed matching funds of approximately $362,500 as authorized by Resolution No 2008-199. At its November meeting, the Zone 2A committee recommended reallocating an additional $150,000 from a smaller project in the SCWA's FY 14-15 recommended budget to the Denman,project. The proposed action would approve the funding agreement.with SCWA for the recommended budget of approximately $512,500. SCWA staff has indicated that the budget augmentation to increase the funding by $150,000 to $5i2;500'will occur at the same SCWA Board action as the approval of the Funding Agreement. The,City Council authorized the execution of a Professional Services Agreement with Questa Engineering Corporation on December 2, 2013. Environmental clearances have been met and survey work has begun. Outreach to regulatory agencies,neighboring properties, and interested persons and groups to solicit design input will begin in March 2014. The proposed action meets,Council Goals and Priorities as follows: Goal: Maintain,a(safe Petaluma Priority: CompleteFlood Control Projects—Denman Reach; Phase 3 DISCUSSION A draft,,,template funding agreement-with SCWA (Attachment 2) is attached. The final agreement will be substantially based,on the template draft and will reflect the final approved funding level, which is anticipatedato.be $512,500. Public Works and Utilities Department staff are working with the City Attorney tosadapt the template draft tot he of the Phase 3 Project,to address iissues related to the nature of the real property interests being acquired, and the-respective`rights and obligations of SCWA and the City concerning construction and. maintenance of the project Authorization is sought from the Council to execute an agreement with SCWA for the Phase 3 project based on the template draft for the final amount approved'.by SCWA (uptoi$512,500); subject to approval by the City Manager of the final agreement terms and confirmation by the:City Attorney that the agreement terms appropriately address the needs of the project and the City's interests. This delegation of authority to the City Manager will help advance the project within°deadlines that apply to use of the project funds: The project=has been found to be consistent with,CEQA through the adoption of a Mitigated Negative;Declaration and project approval onSepte"mber 10;.2012 (Resolution No. 2012-138 N.C.S.). 2 • Staff recommends that the City Council approve the funding agreement draft to secure up to $512,500 in funding from SCWA through Zone 2A, subject to the°SCWA,Board's final action relative to the additional $150,000 recommended for inclusion by the Zone2A Advisory Committee. FINANCIAL IMPACTS The project is primarily funded by the State Natural Resources Agency, State Department of Water Resources and SCWA:through.Zone 2A. No General Fund dollars are being used for this project. City staff will provide management and construction oversight services to complete the project. The cost allocationspreadgheet within the adopted FY 1`3-14 CIP budget will be amended to reflect changes with the State Department of Water Resources grant agreement and the amount final funded through SCWA. The amended CIP will reflect the following budget, and will be included among the mid-year budget adjustments: Project Number: C00500208 Existing CIP Budget: $2,213,000 Proposed CIP Budget: $2,521,137 Land Acquisition: $1,015,262 Project Cost(not including land acquisition) $1,505,875 Funding Sources and Status: State NRA Grant(approved) $ 850,000 State DWR Grant(approved) $ 993,375 SCWA, Zone 2A (approved) $ 362,500 State NRA Grant Amendment (approved) $ 165,262 SCWA, Zone 2A (pending) $ 150,000 Total $2,521,137 ATTACHMENTS I. Resolution 2. SCWA Draft Funding Agreement 3 Attachment I • RESOLUTION,AUTHORIZING THE CITY;MANAGER TO EXECUTE AN'A"GREEMENT'FOR PARTIAL FUNDING'OF THE DEN MAN„REACH.PHASE-3 PROJECT WITH THE SONOMA COUNTY WATER AGENCY WHEREAS,'the City of Petaluma has adopted policies calling for the development of flood terraces and riverfront trail system in the 1996 River Access and Enhancement Plan and the 2008 General Plan 2025; and WHEREAS, the. City has approved a capital improvement project in the amount of $2,213,000 for the implementation of the Denman Reach Phase 3 project; and WHEREAS, the City of Petaluma has been awarded.an initial grant from the State Natural Resources Agency in theamount of$850,000 for land acquisition;and, WHEREAS, the City of Petaluma has been awarded a:grant from the Department of Water Resources in the amount of'$993,375 for the design and construction of the Denman Reach Phase 3'project; and, WHEREAS, the StateiNatural Resources Agency has awarded an additional $165,262 for land acquisition; and, WHEREAS, the SCWA has:approved $362,500 in'funding for the project; and WHEREAS, the Zone 2A Committee has recommended to,the SCWA governing board additional funding:in'the amount,of$150,000 for the implementation of this project,'and WHEREAS, the project was approved concurrently with the adoption of a Mitigated Negative Declaration, through Resolution #2012-138 N:C:'S. adopted by the City Council on September 10, 2012. NOW, THEREFORE. 'BE 'IT RESOLVED, that the City Council of the City of Petaluma hereby: 1. Authorizes the City Manager to Execute an.Agreement for Partial Funding of the Project with'the Sonoma County Water Agency in:an amount Of up to $512,500 based on the draft included as Attachment 2 to the staff report for this item (which attachment made apart of thisresolution by reference) subject to approval by the City Manager of the final agreement terms and confirmation by the City attorney that the agreement terins, appropriately address the needs of the project and the City's interests. The Council approves;,the amendment:to the existing project, Denman_Reach Phase 3 C00500208, to increase the budget from $2,213,000 to $2,521,137 to reflect the • additional funding that has been committed:to the project since the CIP was approved. • 4 • • Attachment 2 , DRAFT *Agreement for Funding of Denman Reach Flood Terrace Project Phase,3 This Agreement is between the Sonoma County Water Agency, on behalf of its Zone 2A, a body corporate and politic of the State of California (hereinafter"Agency"), and City of Petaluma (hereinafter "City"). RECITALS A. The Denman Reach Flood Terrace,Project Phase 3 is described in Attachment Aand is hereinafter referred to as "Project:" Attachment A is an integral part;of this Agreement. Attachment B provides a location map of parcel owned:by'the Agency within the Project.. Attachment B is an integral part of this Agreement. B. City and Agency have evaluated the serious flood and storm damage rwhich occurs to existing residential and commercial structures within the Project area Agency's,Zone 2A Advisory Committee recommends that the Project be undertaken and:expedited to help alleviate the potential damage to existing residential and commercial structures from floodfor storm waters. C. Funding for,the Project is available from;allocation in the category of"Denman Reach Flood Terrace, Phase 3,"within Agency's Petaluma Zone 2A fund (Account No 673301-7287) of the 2005/06'budget. D. Estimated Project costs are shown on Attachment C. Attachment C::is an integral part of this Agreement: City is requesting;$362,500 from Agency's Zone 2A fund for the design and construction of the Project during the 2014 construction season. E.' Agency presently owns certain property on which the Project is'"to be constructed(Agency Property) and is willing;to•quitclaim the;Agency Property to City upon obtaining;all necessary approvals and documentation'(including, but not limited to CEQA and General Plan compliance),.and prior to award of contract; City is willing to accept quitclaim of Agency Property from Agency and will also acquire, and is willing to retain ownership of, any other property or easements,.wherein said'Project Will be constructed'andlis willing to`operate;and maintain said,P,roject in perpetuity., F. Agency and City do mutually.desire to cooperate in the design, construction and financing=of said Project. G. City wishes to expedite desigmand construction of said Project, 5 AGREEMENT City and Agency agree as follows: 1. RECITALS A. The above recitals are true and correct. 2. COORDINATION A. City shall coordinateithe:work with Agency's Project Manager. Contact information: Agency City Project Manager: Contact: Pamela Tuft PO Box 11628 202 North McDowell Blvd. Santa Rosa, CA 95406 Petaluma, CA 94954 Phone: 707=5471.926 Phone: '707-778=44514 Fax: 707-524-3782 Fax: 707-778-4508 Email: @scwa.ca:gov Email: ptiift@ci.petaluma.ca.us 3. CITY'S RESPONSIBILITIES City shall complete the following'at its cost and expense, except to the extent of Agency funding provided for in Sections 4`and5 below. A. General: City-agrees;to perform all work in accordance with the requirements of applicable federal, state, and local laws. B. Environmental Documentation: City shall be the Lead Agency for the,Project under the requirements of the California Environmental Quality Act(CEQA) and has prepared all appropriate environmental documents. City has provided a copy of the draft environmental document to Agency during public reviewprocess and a final copy following the approval of the document and project by the°Petahima City Council. C. Permits: City shall obtain`any permits that may be,necessary from utilities or regulatory agencies for construction of the Project: D. Right-of-Way: Upon obtainingall necessary approvals and documentation (including,but not limited to CEQA and General Plan compliance) and prior to award of contract;City shall accept the quitclaim deed for Agency Property.'Example'language is shown in Attachment E. Attachment E is an integral part of this_Agreement. City shall also acquire any and all additional land or easements as necessary for the construction of the Project. E. Desigmand Surveying:City shall design the Project including all design surveying and construction.staking. F. DraftPlans'and Specifications: City shall prepare a draft of the Project plans and specifications and shall submit one set,along with hydrology and:hydraulic calculations, to Agency for review and comment. The 10-year and 100-year hydraulic grade lines shall be drawn on the draft Project profile drawing. G. Final Plans and Specifications: City shall prepare and provide Agency with a final complete set of all Project construction documents. H. Insurance and Indemnification: City shall require its contractor to insure and indemnify Agency and the County of Sonoma using the language identified in Attachment D as the language for.=insurance and indemnification requirements in the'Bidding Documents and 6 shall provide evidence of such,insurance and indemnification to Agency in a form satisfactory to Agency. Attachment D is an integral parfof'this,Agreement. In addition, City shall require its consultants, if any, to indemnify, defend and insure Agency and the County of Sonoma to the same extent City requires its consultants to indemnify, defend, and insure City. I. Bidding: City shall let Project to bid. J. AWard:;Cityshall award construction contract to the lowest responsive and responsible bidder unless circunistaneesexist that would prevent such award. Such award shall be made on or before June 30,'2014. K. Construction: City shall construct.the Project in accordance with the Final Plans and Specifications, L. Contract.Administration; City shall administer the contract for construction of the Project. M. Inspection: City shall inspect the Project. N. Notice of Completion and'Record Drawings: City shall file;the.Notice of Completion for • construction and provide a copy to Agency within30;calendar days of its filing. City shall prepare record drawings showing any changes, deletions; or additions to the Project and provide a reproducible set to Agency within 45 calendar days of filing the Notice of Completion. 0. Title: All title to all.Project facilities constructed pursuant to this Agreement shall vest with City. P. Operation and Maintenance: City shall operate and maintain Project in perpetuity unless otherwise agreed and addressed by separate document. Q. Records: City shall maintain complete and accurate records of all transactions in compliance with generally accepted'accounting principles for enterprise accounting as promulgated by the American Institnte.ofCertified Public Accountants aiid the Governmental Accounting Standards Board. Such records shall be available to Agency at all reasonable times for inspection and analysis. R. Statement of Costs:Within 60 days of filing Notice.of.Completion, or within 60 days of decision to,not award the contract,City shall submit to.Agency a statement of complete accounting of City's Project costs for the following categories: 1) Design and,othet.pre-construction costs 2) Inspection.and contract administration 3) Construction:costs 4) Change orders S. Indemnification: City agrees to accept all responsibility for loss or damage'to any person or entity, including but not,limited to Agency,and to defend, indemnify,hold harmless, reimburse:and release Agency,its officers, agents,and employees,from and against:any and all actions,claims,.dainages, disabilities, liabilities and expense, including but not limited to attorneys' fees•and the cost of litigation incurred in the defense of claims as to which this • indemnity°applies,or incurred in an action by Agency to enforce the'indemnity provisions herein,Whether arising from personal injury, property damage or economic loss of any type, that maybe asserted by,any person or entity, including City,arising out of or in connection with the performance of City hereunder,!whether or not there is concurrent negligence on the part of Agency,but, to the extent as may be required bylaw„excluding liability due to the sole'negligence, active negligence or willful misconduct of Agency. If there is a possible 7 obligation to indemnify,City's duty to defend exists;regardless'of whether it is ultimately determined,that there.is not a duty to indemnify. Agency shall-have the right to select its own legal counsel at the-expense of-City, subject to City's approval, which approval shall notbe:unreasonably withheld. This indemnification obligationtiis,not limited in any way by any.limitatiohon the.amount or type of damages or Compensation payable to or for City or its:agents'under workers' compensation acts, disability benefit acts, or other employee benefit acts: T. Invoices: City shall ihvoiceAgencyfor costs authorized under this Agreement. All invoices submitted to Agency by City shall be clearly marked with"City-of Petaluma, Funding of Denrnan-Reach Flood'Terrae Project Phase 3,Project/TaskNo. 7032-2 and Account No. 673301-7287." 4. AGENCY'S'RESPONSIBILTTIES A. Quitclaim of Property:,Upon obtaining all necessary approvals and documentation (including, but not-limited to CEQA and General Plan compliance) and prior to award of contract; Agency shall execute the quitclaim deed for.:Agency Property. Example language is shown in Attachment E. B. Initial'Payment: Upon:execution of this Agreement and,receipt of an invoice thereof, Agency will also deposit with City $72,500,which is to finance 20 percent of Agency's share of Project's costs. C. Review of Plans and;Specificatiions: Agency will review and comment on draft Project Plans and Specifications. D. Subsequent Payment: Upon award of the constrUctioh.contract,receipt of'ain invoice thereof, andreceipt of evidence of insurance and`indemnification required in paragraph 3.H, Agency will/deposit with City$290,000, which is'to finance the remaining 80 percent of Agency's share ofProject's costs. 5. ADDITIONAL REQUIREMENTS A. Excess Costs: If the,Projectcosts exceed thetotal amount-authorized under this Agreement, City shall: 1) not award the Project; or 2) fund Project costs in excess of the authorized amounts without additional contribution from Agency;or 3) request additional funding from Agency. In such event, City shall submit a revised Project cost;estimate'to Agency's General Manager/Chief Engineer with a written request,including reasons for cost overruns: 4) Agency is under no obligation to approve such requests. If Agency's General Manager/Chief'Engineer determines that the revised costs are reasonable and that additional funds are available in Agency's Zone 2A accounts, Agency may, in its discretion, amend this Agreement to increase Agency's contribution to Project pursuant to paragraph 5.B below. If Agency's General Manager/Chief-Engineer does not so determine, Cityshall proceed pursuant to paragraph 1)5.A.1) or 5.A.2) above. B. Authority to Amend Agreement:' Changes tolhe Agreement may be authorized only by written amendment to this Agreement, signed by both parties. Agency's General Manager/Chief Engineer,and City's Water Resources and Conservation Department Director are authorized to amend the Agreement provided amendments do not cumulatively increase the total cost to the Agency by more than$25,000 and do not 8 • substantially change the,scope:of-work. Agency's Board of Directors must authorize any amendments or series of amendments that exceed this authority. C. Contract not Awarded: If contract is not awarded, paragraphs 3.J through 3.P shall not apply. D. Refund of Remaining Funds: If the Project cost accounting statement submitted under paragraph 3.R of this Agreement demonstrates that Project costs are less than the amounts paid to City,City shall refund difference to Agency within 30 calendar days of submitting said statement to Agency. E. No Waiver of Breach: The waiver by Agency of any breath of any term or promise contained in this Agreement shall not be deemed to be a-waiver of such term or promise or any subsequent breach of the same or any other term or promise contained in this Agreement. F. Construction: To the fullest extent allowed by law,the provisions of this Agreement shall be construed and given effect in a manner that avoids any violation of statute, ordinance, regulation, or.law. The parties covenant and-agree:that in the event that any provision of this Agreement is held by a court of competent jurisdiction to be invalid,void,or unenforceable, the remainder of the provisions hereof.shall remain in full force and effect and shall in no way be affected,impaired, or invalidated thereby. City and Agency-acknowledge that they have each contributed to the making of this Agreement and that, in the event of a dispute over the.interpretation of this Agreement, the language of the Agreement will not be construed against one party in favor of the other. City and Agency acknowledge that they have each had an adequate opportunity to consult with counsel in the negotiation and preparation of this Agreement. G. No Third-Party Beneficiaries: Nothing contained-in this Agreement shall be construed to create and the parties do not intend to create any rights in third.parties. H. Applicable Law and Forum: This Agreement shall be construed and interpreted according to the substantive law of California excluding the law of conflicts. Any action to enforce the terms of this Agreement or for the breach thereof shall be brought and tried in the County of Sonoma. . I. Captions: The captions in this Agreement are solely for convenience of reference. They are not part of this Agreement and shall have no effect on its construction or interpretation. J. Merger: This writing:is.intended both as the final expression of the Agreement between the parties hereto with respect to theincluded terms and as a complete and exclusive statement of.the terms oftthe Agreement, pursuant to Code of Civil Procedure Section 1856. No modification of this Agreement shall be effective unless and until such modification is evidenced by a-writing signed by both parties. K. Time of Essence: Time is and shall be of the essence of this Agreement and every provision hereof. L. 'Zone Liability: Work under this Agreement is being performed on behalf of;the residents of Sonoma County Water Agency's Petaluma Zone 2A ("Zone"). City shall be paid exclusively from Zone funds. City agrees that City shall make no claim for compensation for City's services against other funds available to Agency and City expressly waives any right to be compensated from other funds available to Agency. In addition,City acknowledges that West's Annotated°California Codes Water Code Appendix Chapter 53-8 provides that 9 certain judgments,or claimsaagainst Agency based on c_auses o faction arising from Zone • activities may be made only from funds of that Zone. /IN WITNESS:WHEREOF, the parties hereto have executed this Agreement as set,forth,below. Reviewed as to substance: Reviewed as to substance: Dan St. John, Department Head Agency's Department Head Reviewed as to funds: Reviewed as to funds: William Mushallo, City's Finance Director Agency's • Division Manager Administrative.Services Reviewed as to form: Reviewed as to form:, Eric Danly, City Attorney County'Counsel: Approved as to form: Ron Blanquie, City's Risk Manager City of Petaluma Sonoma-County Water Agency By: By: John C. Brown, City Manager Chair, Board of Directors Attests Attest: Claire Cooper, City Clerk County Clerk and ex-officio Clerk of the Board of Directors • 10 ATTACHMENT A • Project Description The Project is located along the Petaluma River, upstream of Corona Road within the Denman Reach, within the city limits of Petaluma. The Agency owns a parcel mid-stream of the Petaluma River, APN 007-412-026, and is willing to quitclaim the parcel to City for the Project,retaining a permissive clearing easement as shown in Attachment;E. Three adjacent property owners have indicated an interest and willingness to participate:in the creation of a flood terrace along the stream edge and the City will acquire property rights on theirproperty•as necessary to complete the Project. The Project consists of creating flood terracing adjacent to the Petaluma River to soften and stabilize the existing incised, steep, and eroding banks; providing improved storm water flow and storage; and reducing localized flooding, including flooding of inhabited structures along Petaluma Blvd. North within the unincorporated area of Sonoma County. The Project will help to alleviate flooding in the industrial and residential:areas surrounding the Project site The industrial uses are within the city limits of Petaluma along Industrial Avenue. The residential and commercial uses are withinthe unincorporated area of Sonoma County along.Petaluma Blvd. North. The Project will be designed to carry the,8,000-cubic-foot-per-second:flow anticipated from a 100-year frequency storm within the Petaluma watershed, to the extent possible by design, developed to General Plan densities. The Project will extend the existing improvements undertaken by'City on four parcels acquired to create the flood terrace and reduce localized flooding downstream of the Project site and will work in concert with the City's terracing projectcompleted downstream. 11 ATTACHMENT'B. Location Map LI I. 1(\- 1—), 14\ Z \ PN. r• I/ se . - ,az,",, i 1 r ''-j .7 .4416. WliN .I ' '' . �� ' Aa 0j k 4' b a `Th � : �' �� \ ? „..e, #1 / 77-\\\\((\:, </NC/ N aA: . vim• \f�, . • •` ) / /�. [lam\� FOC,O4usr A LOCATION MAP \S 1`I FFiR3 PETAL UM RIVER s, € DENMAN REACH FLOOD TERRACE" PHASE 3 8-1 1 t am _ o xa iaw 12 ATTACHMENT`C Summary of Estimated Costs Item Cost DWR Grant Total Estimated.Environmental':Costs $15,000 $50,000 $65,000 Estimated Design and Other Preconstruction Costs • Right-of-Way $15,000 $15,000 • Design, Permits, Award $45,000 $120,000 $165,000 Subtotal: Estimated Design and Other $75,000 $1.70,000 $245,000 Preconstruction Costs Estimated Construction.Costs _ • estimated bid amount, contingencies, $225,000 $743,375 $968,375 change orders • inspection & contract administration $22,500 $80,000 $102,500 • revegetation $40,000 part of const. $40,000 Subtotal: Estimated Construction, Change Orders,Inspection,;and Contract $287,500 $823,375 $1,110,875 Administration Costs• _ - Total Amount to be.Funded I $362;500 $993,375 $1,355,875 13 ATTACHMENT'D Wordingifor Construction Contract Indemnification Contractor agrees to accept all responsibility for.loss or damage to any person or entity, and to defend, indemnify; hold harmless and release Sonoma County Water Agency and the County of Sonoma, their officers;agents, and employees, from-and against any and all actions, claims, damages, liabilities, or expenses that may be asserted by any person or entity, including Contractor, arising out of or in connection with the performance of Contractor hereunder, whether or not there is concurrent negligence on the part of Sonoma County Water,.Agency or County of Sonoma,but to the"extent as may be required by law, excluding liability due to the sole negligence; active negligence or willful misconduct of.Sonoma County Water Agency or County of Sonoma. This indemnification obligation is,not limited in any way by any limitation on the amount or type of damages or compensation payable to or for Contractor or its agents under Workers' Compensation"acts, disability benefit acts, or other employee benefit acts. Insurance Contractor shall obtaiitinsurance,acceptable to City of Petaluma from a company or companies acceptable to City. The required documentation of such insurance shall be furnished to,Cityat the time Contractor returns the executed,contract. The proper insurance shall be provided within ten(10) calendar days after the bidder has received the notice that the contract has been awarded and prior to Cityexecuting the contract and issuing a notice to proceed. The Contractor shall not commence work nor shall he allow his employees or subcontractors or anyone to commence work;until all insurance required hereunder has been submitted and approved and:a notice to proceed has been issued. Contractor shall maintain and shall require all of its subcontractors to maintain insurance as desc"ribed below: A. Workers:Cornpensation-Insurance with statutory limits as required by the Labor Code;of the State of California. Said policy shall be endorsed with the following specific language: This policy shall not be canceled or materially changed without first giving-thirty (30) days prior written notice to the Sonoma County Water Agency. 14