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HomeMy WebLinkAboutC2026-057 - 5/12/2026 - Approved -� SERVICE AGREEMENT NO. 7096 ' Pipeline Water Leak Detection & Mapping THIS In-Service Treated Water Leak Detection & Mapping Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation ("City") and Pure Technologies U.S. Inc. ("Contractor'), effective upon execution by the City Manager or the City Manager's designee ("City Manager"). WHEREAS, Contractor has bid to provide In-Service Treated Water Leak Detection & Mapping in response to Request for Bid/Proposal No. 7096 ("RFB/RFP"), which RFB/RFP includes the required scope of work and all specifications and which RFB/RFP and the Contractor's bid or proposal response, as applicable, are incorporated by reference in this Agreement as Exhibits 1 and 2, respectively, as if each were fully set out here in its entirety. NOW, THEREFORE, City and Contractor agree as follows: 1. Scope. Contractor shall provide In-Service Treated Water Leak Detection & Mapping of the Laguna Madre Crossing and Port Aransas Pipelines ("Services") in accordance with the attached Scope of Work, as shown in Attachment A, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety, and in accordance with Exhibit 2. 2. Term. The term of this Agreement is one year beginning on the date provided in the Notice to Proceed from the Contract Administrator or the City's Procurement Division. The parties may mutually agree to extend the term of performance of the Services, if necessary to complete the work, provided, the parties do so in writing prior to the expiration of the original term. 3. Compensation and Payment. This Agreement is for an amount up to $340,549.50, subject to approved amendments and changes. Payment will be made by the City for Services performed and completed within 30 days of the Contractor's invoice date, subject to receipt of an acceptable invoice, and payments will be made in accordance with the payment schedule indicated in Attachment A. All pricing must be in accordance with the amounts stated in Attachment A. Invoices must be mailed to the following address, with a copy provided to the Contract Administrator: City of Corpus Christi Attn: Accounts Payable P.O. Box 9277 Corpus Christi, TX 78469-9277 Service Agreement- Pure Technologies (Pipelines) Page 1 of 8 4. Contract Administrator. The Contract Administrator designated by the City is responsible for approval of all phases of performance and operations under this Agreement, including deductions for non-performance and authorizations for payment. The City's Contract Administrator for this Agreement is as follows: Mikail Williams, Engineer II Corpus Christi Water 361-826-1713 mikailw@corpuschrisittx.gov 5. Insurance; Bonds. (A) Before performance can begin under this Agreement, the Contractor must deliver a certificate of insurance ("COI"), as proof of the required insurance coverages, to the City's Risk Manager and the Contract Administrator. Additionally, the COI must state that the City will be given at least 30 days' advance written notice of cancellation, material change in coverage, or intent not to renew any of the policies. The City must be named as an additional insured. The City Attorney must be given copies of all insurance policies within 10 days of the City Manager's written request. Insurance requirements are as stated in Attachment B, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. (B) In the event that a payment bond, a performance bond, or both, are required of the Contractor to be provided to the City under this Agreement before performance can commence, the terms, conditions, and amounts required in the bonds and appropriate surety information are as included in the RFB/RFP or as may be stated on Attachment B, and such content is incorporated here in this Agreement by reference as if each bond's terms, conditions, and amounts were fully set out here in their entireties. 6. Purchase Release Order. For multiple-release purchases of Services to be provided by the Contractor over a period of time, the City will exercise its right to specify time, place and quantity of Services to be delivered in the following manner: any City department or division may send to Contractor a purchase release order signed by an authorized employee of the department or division. The purchase release order must refer to this Agreement, and Services will not be rendered until the Contractor receives the signed purchase release order. 7. Inspection and Acceptance. City may inspect all Services and products supplied before acceptance. Any Services or products that are provided but not accepted by the City must be corrected or re-worked promptly at no charge to the City. If prompt correction or re-working at no charge cannot be made by the Contractor, a replacement service may be procured by the City on the open market and any costs incurred, including additional costs over the item's Service Agreement- Pure Technologies (Pipelines) Page 2 of 8 bid/proposal price, must be paid by the Contractor within 30 days of receipt of City's invoice. 8. Warranty. (A) The Contractor warrants that all products supplied under this Agreement are new, quality items, fit for their intended purpose, and of good material and workmanship. The Contractor warrants that it has clear title to the products and that the products are free of liens or encumbrances. (B) In addition, the Services and products purchased under this Agreement shall be warranted by the Contractor or, if indicated in Attachment C by the manufacturer of the products, for the period stated in Attachment C. Attachment C is attached to this Agreement and incorporated by reference as if set out here fully in its entirety. (C) Contractor warrants that all Services will be performed in accordance with the standard of care used by similarly situated contractors performing similar services. 9. Quality/Quantity Adjustments. Any Service quantities indicated on the Attachment A are estimates only and do not obligate the City to order or accept more than the City's actual requirements nor do the estimates restrict the City from ordering less than its actual needs during the term of the Agreement and including any Option Term. Substitutions and deviations from the City's Service and/or product requirements or applicable specifications are prohibited without the prior written approval of the Contract Administrator. 10. Non-Appropriation. The continuation of this Agreement after the close of any fiscal year of the City, which fiscal year ends on September 30th annually, is subject to appropriations and budget approval specifically covering this Agreement as an expenditure in the City's budget, and it is within the sole discretion of the City's City Council to determine whether or not to fund this Agreement. The City does not represent that a budget item will be adopted, as that determination is within the City Council's sole discretion when adopting each fiscal budget. 11. Independent Contractor. Contractor shall perform the Services and work required by this Agreement as an independent contractor and will furnish such Services in its own manner and method, and under no circumstances or conditions will any agent, servant or employee of the Contractor be considered an employee of the City. 12. Subcontractors. In performing the Services, Consultant may use subcontractors in connection with the Services and work performed under this Agreement. When using subcontractors, however, the Consultant must obtain prior written approval from the Contract Administrator. Notwithstanding the foregoing, Consultant has Service Agreement- Pure Technologies (Pipelines) Page 3 of 8 been approved to utilize subcontractors to provide the Services whenever deemed necessary by the Consultant. In using subcontractors, the Consultant is responsible for all of their/its subcontractors' acts and omissions to the same extent as if the subcontractor and its employees were employees of the Consultant. All requirements set forth as part of this Agreement, with the exception of providing COls to the City for Consultant's subcontractors in the event a subcontractor does not separately maintain any type(s) or kind(s) of insurance coverages, are applicable to all subcontractors and their employees to the same extent as if the Consultant and its employees had performed the Services and work. The City may, at the City's sole discretion, choose not to accept Services performed by a subcontractor that was not approved in accordance with this paragraph. the Contractor will not enter into subcontracts or utilize the services of subcontractors. 13. Amendments. This Agreement may be amended or modified only in writing and executed by an authorized representative of each party. 14. Waiver. No waiver by either party of any breach of any term or condition of this Agreement waives any subsequent breach of the same. 15. Taxes. Reserved. 16. Notice. Any notice required under this Agreement must be given by fax, hand delivery, or certified mail, postage prepaid, and is deemed received on the day faxed or hand-delivered or on the third day after postmark if sent by certified mail. Notice must be sent as follows: IF TO CITY: City of Corpus Christi Attn: Mikail Williams, Engineer II Corpus Christi Water 2726 Holly Road, Corpus Christi, TX 78415 Phone: 361-826-1713 Fax: N/A IF TO CONTRACTOR: Pure Technologies U.S. Inc. Attn: Steve Purkiss, Business Development Manager 989 Corporate Blvd. Suite F, Linthicum Heights, MD 21090 Phone: 760-644-5392 Fax: N/A 17. CONTRACTOR SHALL FULLY INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY OF CORPUS CHRISTI AND ITS OFFICERS, EMPLOYEES, AND AGENTS ("INDEMNITEES") FROM AND AGAINST ANY AND ALL LIABILITY, LOSS, CLAIMS, DEMANDS, SUITS, AND CAUSES OF ACTION OF WHATEVER NATURE, CHARACTER, OR DESCRIPTION ON ACCOUNT OF Service Agreement- Pure Technologies (Pipelines) Page 4 of 8 PERSONAL INJURIES, PROPERTY LOSS, OR DAMAGE, OR ANY OTHER KIND OF INJURY, LOSS, OR DAMAGE, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, ATTORNEYS' FEES AND EXPERT WITNESS FEES, WHICH ARISE OR ARE CLAIMED TO ARISE OUT OF OR IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT BY THE CONTRACTOR OR RESULTS FROM THE NEGLIGENT ACT, OMISSION, OR FAULT OF THE CONTRACTOR OR ITS EMPLOYEES OR AGENTS. CONTRACTOR MUST, AT ITS OWN EXPENSE, INVESTIGATE ALL CLAIMS AND DEMANDS, ATTEND TO THEIR SETTLEMENT OR OTHER DISPOSITION, DEFEND ALL ACTIONS BASED THEREON WITH COUNSEL SATISFACTORY TO THE CITY ATTORNEY, AND PAY ALL CHARGES OF ATTORNEYS AND ALL OTHER COSTS AND EXPENSES OF ANY KIND ARISING OR RESULTING FROM ANY SAID LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS, SUITS, OR ACTIONS. THE INDEMNIFICATION OBLIGATIONS OF CONTRACTOR UNDER THIS SECTION SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 18. Termination. (A) The City may terminate this Agreement for Contractor's failure to comply with any of the terms of this Agreement. The City must give the Contractor written notice of the breach and set out a reasonable opportunity to cure. If the Contractor has not cured within the cure period, the City may terminate this Agreement immediately thereafter. (B) Alternatively, the City may terminate this Agreement for convenience upon 30 days' advance written notice to the Contractor. In the event of a termination for convenience or due to non-appropriation of funds (as stated elsewhere in this Agreement), the Contractor shall be paid for all Services and work completed up to and including the date of termination. 19. Owner's Manual and Preventative Maintenance. Contractor agrees to provide a copy of the owner's manual and/or preventative maintenance guidelines or instructions, if available, for any goods purchased by the City pursuant to this Agreement. Contractor must provide such documentation upon delivery of such goods and prior to receipt of the final payment by the City. 20. Limitation of Liability. Each party's maximum pecuniary liability under this Agreement is limited to the total amount of compensation shown in Section 3 of this Agreement. In no event shall either party be liable for incidental, consequential, or special damages. 21. Assignment. No assignment of this Agreement by the Contractor, or of any right or interest contained herein, is effective unless the City Manager first gives written Service Agreement- Pure Technologies (Pipelines) Page 5 of 8 consent to such assignment. The performance of this Agreement by the Contractor is of the essence of this Agreement, and the City Manager's right to withhold consent to such assignment is within the sole discretion of the City Manager on any ground whatsoever. 22. Severability. Each provision of this Agreement is considered to be severable and, if, for any reason, any provision or part of this Agreement is determined to be invalid and contrary to applicable law, such invalidity shall not impair the operation of nor affect those portions of this Agreement that are valid, but this Agreement shall be construed and enforced in all respects as if the invalid or unenforceable provision or part had been omitted. 23. Order of Precedence. In the event of any conflicts or inconsistencies between this Agreement, its attachments, and exhibits, such conflicts and inconsistencies will be resolved by reference to the documents in the following order of priority: A. this Agreement (excluding attachments and exhibits); B. its attachments; C. the bid solicitation document including any addenda (Exhibit 1 ); then, D. the Contractor's bid response (Exhibit 2). 24. Certificate of Interested Parties. Contractor agrees to comply with Texas Government Code Section 2252.908, as it may be amended, and to complete Form 1295 "Certificate of Interested Parties" as part of this Agreement if required by law. 25. Governing Law. Contractor agrees to comply with all federal, Texas, and City laws in the performance of this Agreement. The applicable law for any legal disputes arising out of this Agreement is the law of the State of Texas, and such forum and venue for such disputes is the appropriate district or county court in Nueces County, Texas. In accordance with Chapter 2271 , Texas Government Code, if this contract has a value of $100,000 or more paid wholly or partly from public funds and the Contractor has 10 or more full-time employees, Contractor verifies that the Contractor does not boycott Israel and will not boycott Israel during the term of this Agreement. In accordance with Chapter 2274, Texas Government Code, Contractor verifies that the Contractor does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association and will not discriminate during the term of the Agreement against a firearm entity or fire trade association. In accordance with Chapter 2276, Texas Government Code, Contractor verifies that the Contractor does not boycott energy companies and will not boycott energy companies during the term of this Agreement. 26. Public Information Act Requirements. This paragraph applies only to agreements that have a stated expenditure of at least $1 ,000,000 or that result in the expenditure of at least $1 ,000,000 by the City. The requirements of Subchapter J, Service Agreement- Pure Technologies (Pipelines) Page 6 of 8 Chapter 552, Government Code, may apply to this contract and the Contractor agrees that the contract can be terminated if the Contractor knowingly or intentionally fails to comply with a requirement of that subchapter. 27. Confidential Information. Contractor, for itself and its officers, agents, and employees, as well as for any subcontractors who may be engaged by Contractor under this Agreement, agrees that it shall treat all information provided to it by the City and/or developed by it for the City ("City Information") as confidential and shall not disclose any such City Information to a third party without the prior written approval of the City, acting by and through the City Manager. 28. Entire Agreement. This Agreement constitutes the entire agreement between the parties concerning the subject matter of this Agreement and supersedes all prior negotiations, arrangements, agreements and understandings, either oral or written, between the parties. (Signature Page Follows) Service Agreement- Pure Technologies (Pipelines) Page 7 of 8 CONTRACTOR $ryrxz 8eyd Signature: Rm Printed Name: Bryon Boyd Title: U.S.Regional Sales Manager-West Date: 05/13/2026 CITY OF CORPUS CHRISTI spirt- Y'Sergio illasana(May 17,2026 14:41:11 CDT) 05/17/2026 Sergio Villasana Date ReS.033929 Aritliorized By Director, Finance & Procurement Reviewed by: Cot.incil 5/12/2026 CGa�ton sl�h 05/13/2026 kl�s$ Clayton mith(May 13,2026 17:35:10 CDT) RHSB Contracts Manager Date Approved as to form: ATTEST: 05/14/2026 EEabe undley(May 14, 026 22:50:54 CDT Rebecca RLwta Assistant City Attorney Date Rebecca Huerta(May 18.2026 17.06.22 CDTI Rebecca HLierra Clt}r Secretary Attached and Incorporated by Reference: Attachment A: Scope of Work and Fees Attachment B: Insurance and Bond Requirements Attachment C: Warranty Requirements Incorporated by Reference Only: Exhibit 1 : RFB/RFP No. 7096 Exhibit 2: Contractor's Bid/Proposal Response Service Agreement- Pure Technologies (Pipelines) Page 8 of 8 Attachment A: Scope of Work and Fees xN I le Let's Solve Water Ludwb*-:w- r - * + • 1 Smart6all° April 21, 2026 Prepared for Corpus Christi Water Mikail Williams — 7 ' �1 M 2726 Holly Road PO Box 9277 TECHNOLOGIES a xylem brand Corpus Christi, TX 78469 TECH a xylem brand Mikail Williams Engineer II Corpus Christi water RE: In-Service Treated Water Leak Detection and Mapping of Laguna Madre and Port Aransas Pipelines Dear Mikail, Pure Technologies U.S. Inc., a Xylem brand is pleased to offer our services to Corpus Christi Water (CCW)for inline leak and air pocket detection, as well as mapping of the Laguna Madre Crossing and Port Aransas pipelines. The Laguna Madre Crossing Pipeline consists of an inspection distance of roughly 21,940 LF (4.15 mi) of 24-inch Asbestos Cement pipe (ACP). The Port Aransas Pipeline consists of an approximate inspection distance of 37,291 LF (7 mi) of 20- and 16-inch ACP and Flexible Polyvinyl Chloride (FPVC). Between the two pipelines an approximate total of 59,231 LF (11.2 miles) of pipeline is accounted for in this project scope. We propose using our SmartBall® free-swimming inspection platform to complete this project. SmartBall inspects pipelines while they are in service, detects acoustic activity associated with leaks and trapped air pockets, and uses motion data to map the pipelines' true alignment. Features that make Pure Technologies' SmartBall platform the ideal solution for this project include: • Reporting the location of leaks and air pockets within ±6 feet of their actual location • The ability to live track and locate the actual position of the SmartBall tool within the pipeline • The ability to map the true X-Y pipeline alignment using field-collected GPS points combined with SmartBall motion data • 24-hour preliminary analysis to identify and investigate medium and large leaks prior to demobilizing • 15+ years of experience successfully inspecting over 8,350 miles and reporting over 3,800 leaks Figure 1 below shows the two pipelines mentioned above and their general limits of assessments. 2 TEC a xylem brand r p � v IN Figure 1:24-inch Laguna Madre Crossing(Red)and 20-&16-inch Port Aransas(Blue)Pipeline overviews Pure Technologies is a recognized industry leader in the inspection, assessment, and management of pressurized water and wastewater pipelines. We continually strive to set the industry standard with the most trusted, technologically advanced tools operated by our highly experienced team. We look forward to addressing any questions you may have and helping you solve your water challenges. Steve Purkiss Business Development Manager Pure Technologies, a Xylem brand (760) 644-5392 steve.purkiss@xylem.com 3 In-Service Pipe Inspection TECNN�"M'OG,E. a xylem brand In-Service Pipeline Leak Detection and Mapping Inline leak detection is the best solution for detecting leaks in transmission mains as it brings Since 2005, utilities around the world the leak detection sensor directly to the source of have relied on the SmartBall platform the leak, providing greater sensitivity and accuracy, to inspect more than 8,895 miles of and covering long distances in a single pipeline and detect over 4,015 leaks. deployment. The SmartBall inspection platform can be deployed in an active pipeline, avoiding the inconveniences associated with shutting off water flow for the duration of the inspection. Using the SmartBall inspection platform, Pure Technologies .< has located thousands of leaks saving millions of uJ >As gallons of water. Leak Detection and Mapping for Condition Assessment. Buried infrastructure typically accounts for a majority of the asset value of most utilities. The SmartBall platform is a valuable addition to a proactive pipeline management Figure 2:SmartBall Free-swimming Inspection program, helping pipeline owners better Platform for Pipeline Leak,Air Pocket Detection and Mapping understand the condition and location of their buried assets. By detecting leaks and air pockets, SmartBall empowers utilities to address problem areas before they result in larger failures, reducing unplanned capital expenditures while increasing operational confidence. Pipeline Mapping. Knowing the location of underground pipelines with certainty is a key component of pipeline management and comprehensive condition assessment programs. Confirming the location of buried assets helps pipeline managers evaluate the risk of pipeline failure, understand the alignment relative to other critical assets and nearby utilities, efficiently plan - to minimize the cost of maintenance work, reduce the likelihood of third-party damage, and conduct more accurate hydraulic modeling. • ms°�,b�, -Vlitly GlS lne The Pure Technologies team and technical Figure 3: Confirmation of True Pipeline Alignment with solution bring a host of benefits to bear on this SmartBall Mapping project: * Project planning site visit that includes GPS point collection • Development of an in-depth project planning document • All travel and shipping costs included in our proposed fee 1 TECH a xylem brand Confined space entry certified personnel equipped with safety equipment Use of current pipeline features where possible, such as existing 4-inch taps, reservoirs and hydrants Minimal onsite support requirement from the utility-typically limited to escorting tracking teams, opening manholes, and operating the pipeline Post-project support to ensure results and reports are clear and accurate to support excavation, if required. The best way to proactively manage any pipeline is to better understand its health using proven condition assessment solutions combined with advanced analysis. A comprehensive condition assessment of water pipelines involves deploying tools to accurately assess the health of the buried infrastructure along with advanced engineering analysis to provide a clearer understanding of risks that inform short- and long-term repair and replacement strategies. SmartBall The SmartBall inspection platform is a free-swimming, nondestructive inline inspection technology that detects acoustic activity associated with leaks and pockets of trapped air in pressurized pipelines. Optionally, SmartBall can map the pipeline using the motion data of the tool along with field-collected GPS data. The SmartBall tool is typically inserted through a valve into an active line. Once deployed, the tool is propelled by the hydraulic flow and can navigate inline valves, 90-degree bends, tees, diameter changes, profile changes, and vertical risers. It is typically extracted by inserting an expandable retrieval net through a pressurized stack attached to a 4-inch full-bore flanged valve. The SmartBall tool is continuously tracked during an inspection using proprietary tracking devices synchronized with the tool and tracking sensors installed along the pipeline prior to deployment. When mapping of the pipeline is included in the project scope, advanced location algorithms are used to evaluate motion data recorded by the SmartBall tool in combination with field-collected GPS data to determine the alignment of the pipeline. An overview of the SmartBall platform inspection process is shown in Figure 4. Transient Pressure Monitoring A hydraulic evaluation is proposed in order to understand the operational and surge pressures within the pipeline. When pipe wall degradation is combined with surge pressures, the likelihood of pipe failure can be significantly increased. Evaluation of the pump station operation, such as pump startup mode, typical and peak flows, operating and surge pressures, and surge protection, can provide important information on the stresses imparted on the pipeline. 2 TECMN a xylem brand Hydraulic pressure transients (also known as surges or water hammers) occur in pipelines when the pressure conditions in the system change due to variances in pressure or flow(e.g. pump on/off cycles or the rapid closure of a valve). The magnitude of a transient is related to several factors that include, but are not limited to, the flow rate within the pipeline, the time in which the change in steady-state condition occurs, and a pipe's hoop stiffness. During a transient event, the kinetic energy within the pipeline (velocity of the water), is converted into potential energy(pressure in the pipe) and strain energy(deformation/strain in the pipe wall) by the propagation of transient pressure waves. A transient pressure wave can travel through the pipeline at speeds greater than 3,000 feet per second and can cause damaging pressure events and vacuum conditions, which can lead to permanent damage within the pipe wall and failure within the pipe system. SmartBallxylem Let's Solve Water Free-swimming inspection platform for and air pocket detection and pipeline map •Remote Confirm air valve II - tracking functionality Live tracking • i 0 ® • • 4-inch (100 mm) Detect Detect air Map Pass inline 4-inch (100 mm) insertion leaks pockets alignment valves extraction Figure 4:SmartBall Inspection Overview Conventional pressure monitors collect data in intervals of seconds or minutes while transients may occur in fractions of a second and may be missed by traditional equipment. A transient pressure monitor continuously samples pressure at a high rate and records data every few minutes under normal operating conditions; however, when a transient pressure event is detected in the pipeline, the sampling rate increases to once every 50 milliseconds (20 readings per second). Telog pressure monitors are also capable of recording negative pressures in a pipeline as low as-14.7 psi, or perfect vacuum, as well as positive pressures in the pipelines as high as 300 psi. 3 TECH a xylem brand Project Milestones and Deliverables Additional details regarding insertion, extraction and tracking of the inspection tools are provided in Appendix A, Inspection Considerations. Planning and Mobilization The planning process is an integral element of a successful project. It allows the team to identify features of the site or the pipe that could prevent a successful inspection. Actions can then be implemented to mitigate any potential risk. Pure Technologies will meet with CCW to perform a site visit to assess access to the pipeline and identify potential challenges and risks. As much information as possible on the pipeline will be requested during the planning process. It is our understanding that CCW will facilitate all civil activity for pipeline access and tracking sensor installation, which may require modification to existing features, excavation, tapping, traffic control, scaffolding and other activities identified during the planning process necessary to access pipeline features determined to be critical to the inspection. Pure Technologies will make every effort to utilize existing pipeline features where feasible. Activities undertaken as part of the planning and mobilization process include, but are not necessarily limited to the following: Project document review • Project planning site visit and review • Pre-inspection coordination/meetings • Planning document development, including tracking plan and tracking sensor installation details Equipment and staffing logistics Tool preparation Pre-inspection activities required in advance of the scheduled inspection date Based on the information gathered from the project planning site visit and all available documents, a detailed Project Planning Document(PPD) outlining the inspection plan, including insertion and extraction procedures and tracking sensor locations will be submitted prior to commencing the work. The PPD will be submitted to CCW in electronic PDF format at least two weeks prior to the inspection, dependent on the receipt of project data, or as soon as possible in cases of urgent mobilization. CCW should review and provide comments or approval of the PPD prior to mobilization. Any changes to the scope that arise in the planning process which impact the pricing in this proposal will be discussed with City and mutually agreed upon before proceeding. During the site visit, GPS location data will be collected for all Control Points and Reference Points. Chambers and vaults must be opened to ensure that the GPS points are recorded above the actual pipeline feature or to add an offset to the GPS points. 4 TECH a xylem brand Planning and Mobilization Deliverables 1. Project Planning Document that outlines the inspection plan, including insertion and extraction procedures and tracking sensor locations. Inspection SmartBall tracking sensor installation will be completed the day prior to inspection and may take one to two days, depending on sensor locations and accessibility. It is expected that CCW will aid with any sensor installations that require soft digs or pavement coring to access the pipeline and will provide appropriate traffic control during tracking installations, if required, as outlined in the PPD. Leak locations are determined using data recorded by the sensors onboard the SmartBall tool as well as that recorded by the tracking devices. This data is also used to determine if a leak is occurring on a pipe joint, barrel, or pipeline feature. Leaks occurring on the barrel of a pipe may indicate the pipe has been structurally weakened and is in danger of failing. Experience has shown our analysis methods are accurate to within approximately ±6 feet. The inspection is anticipated to take two days to complete. Immediately preceding the deployment of the SmartBall tool, Pure Technologies personnel will measure the flow speed, flow direction, and pipeline operating pressure to verify the conditions in the pipeline. Several tracking teams will be assigned to monitor the tool's movement through the pipeline. If required, CCW will provide traffic control during the inspection at each tracking sensor location. Coordination with operations staff will be required throughout the duration of the inspection, particularly for activities such as valve operation, pump management, etc. These activities will be outlined in the PPD. Upon completion of the inspection, data will be downloaded from the SmartBall tool and shared with the Pure Technologies analysis team. Prior to demobilizing from the inspection, the Pure Technologies team will review data recorded by the SmartBall tool and investigate suspected medium and large leaks identified during the inspection. The results from this analysis will be communicated directly to CCW through email, phone, or in-person. To investigate, personnel will travel to the location of the suspected leak to look for obvious signs of leakage, listen with a ground microphone, investigate nearby pipeline features and manholes, and will record additional GPS points used to improve the final reported location of the leak that will be delivered in the draft report. Further details on considerations related to the pipeline inspection such as pressure, flow requirements, or insertion/extraction requirements can be found in Appendix A, Inspection Considerations. The SmartBall tool will be inserted into the pipeline a second time to acquire the data needed to map the pipeline alignment. The pipeline alignment will be determined using motion data collected during inspection runs, as well as advanced algorithms. Optional Inspection Services Flow Rate Verification. Onsite verification of flow rates under inspection conditions can be conducted during initial site visit. This can be an essential step in the planning process for complex 5 TECH a xylem brand pipeline networks that require numerous valves to be operated or for utilities needing additional assistance to verify that operating conditions in the pipeline are suitable for inline inspection. Data Analysis The Pure Technologies analysis team will analyze the data collected by the SmartBall platform to document details of acoustic events including acoustic intensity plots and tracking details. A dig sheet will be developed for each leak to aid in location and excavation. Dig sheets include an aerial view of the pipeline alignment and detail a leak location based on the distance from the leak to the nearest upstream and downstream pipeline features. For pipeline mapping data analysts will use the SmartBall directional data, along with field collected GPS points and pipeline bearing information, to create a geodatabase that characterizes the true alignment of the pipeline. This alignment is then compared to available pipeline information, such as an existing pipeline GIS and as built drawings, to identify conflicts or confirm the assumed pipeline alignment. In areas where the SmartBall-derived alignment agrees with a utility's records, the utility can feel more confident the assumed location of the pipeline is close to actual. If a conflict is identified, a targeted effort of exposing the pipeline, line finding and/or surveying at these specific areas may be warranted depending on the location accuracy required for the subject pipeline. The error range of the mapping results will be calculated considering the distance between control points, availability of GPS points and pipeline heading, and quality of rolling motion of the SmartBall tool. Data Analysis Deliverables 1. Immediate notification of suspected medium and large leaks, if needed 2. Draft Inspection Report including: o Project background and inspection details o Details of acoustic events including acoustic intensity plots and tracking details o A table of results identifying locations of acoustic events (e.g., leaks and/or air pockets) presented in PDF and/or spreadsheet o Dig sheets to aid in locating and excavating reported leaks, including an aerial view of the pipeline alignment and detail of each leak location 3. Geodatabase including SmartBall-collected alignment data, GPS points, and range of accuracy. The SmartBall Mapping results will be delivered in a geodatabase in the NAD 1983 State Plane Texas South FIPS 4205 (US Feet) coordinate system. 4. Identification of conflicts between an existing pipeline alignment dataset and the SmartBall generated GIS alignment. 5. Final Inspection Report incorporating comments from CCW. 6 TECH a xylem brand Transient Pressure Monitoring Pure Technologies will install a Telog Pressure Impulse Recorder to collect pressure data for up to 30 days. The recorder can be programmed to record the minimum, average, and maximum background operating pressure every 5 minutes. Pure Technologies will then remove the recorder and incorporate the results in the final report. Transient monitoring will be performed concurrently with project planning and implementation to maintain project schedule. Transient Pressure Monitoring Deliverable 6. Raw monitoring data in spreadsheet format 7. Comprehensive report with findings Pipeline and Inspection Details Pure has been given the drawings and schematics of both the Laguna Madre Crossing and Port Aransas pipelines for an initial review. During this review, it is apparent that to carry out a full assessment of these pipelines, that some pre-inspection modifications to them will be necessary. Laguna Madre Crossing The Laguna Madre Crossing begins on the northern side of the channel near the intersection of Laguna Shores Road and Lola Johnson Road. Based on the schematics the pipeline begins as 24- inch steel (STL)within a gate valve chamber and continues southeast toward the Sand Dollar Pump station on South Padre Island. Along this path of approximately 4.15 miles, at least three (3) gate valves are shown within the drawings which can be used as sufficient tool tracking locations for the inspection(s). To insert and extract SmartBall into and out of the pipeline, modifications to the pipeline will be needed. To insert and extract the SmartBall tool, a minimum 6-inch top outlet will need to be installed. Port Aransas The Port Aransas pipeline begins south of the Sand Dollar Pump station near the intersection of HWY 361 and Park Road 22. The pipeline continues in a northeast direction and feeds the communities of Mustang Island. An initial review of the drawings indicates that there are no direct access points to the pipeline for either insertion and extraction nor for tool tracking purposes. To that end, new 6-inch top outlet access points are required at each end. In addition, various potholes will need to be added along the length of the pipeline to be used as tool tracking and to increase location accuracy of reported leaks/air pockets. Additional Work (New Access Taps) Knowing that conducting these inspections will require some modifications to the pipeline, Pure has reached out to a well-known pipe tapping company(Rangeline Group)who specialize in large diameter wet tapping services throughout the US. The required new access taps include four(4) 6- 7 TECH a xylem brand inch wet-taps to be placed (two for each pipeline- insertion and extraction). Pricing for this work is reflected within the Fee Table as well, includes a 15% subcontractor management fee. CCW Responsibilities It is expected that the activities listed below will be completed by CCW. Requirements will be determined in more detail during the inspection planning process. ® Provide information about the pipeline at least four weeks prior to the inspection date including, but not limited to, plan and profile drawings, lay sheets, shop drawings, manufacturing details, and details of access structures and appurtenances- if available. • Obtain any required legal right-of-entry on the property. • Provide support personnel during the inspection for locating the access structures, traffic control, valve operation, pump operation, and other support as necessary. • Provide Pure Technologies with the typical flow velocities and pressures for pipeline operation, and the expected minimum and maximum values for each. If this data is unavailable, Pure Technologies would like the opportunity to verify flow velocities recommended prior to performing the inspection. • Provide and maintain safe and reasonable access to all work sites throughout the inspection and obtain permits as required. • Render confined areas safe for the services, including lockout/tagout of pumps, valves and motors; dewatering chambers and vaults to permit movement of persons and equipment; and vector and rodent control as necessary. • Provide scaffolding to support SmartBall insertion or extraction if needed. • Excavate, dewater, shore up, and/or provide scaffolding of job area and other civil activity as necessary in compliance with Occupational Safety and Health Administration and local standards and regulations. • Operate the pipeline in a manner that will achieve the minimum required flow velocity indicated in the Planning Document throughout the inspection. 8 re TECH VOGIES a xylem brand Project Schedule The proposed schedule for the project is shown below. Timelines are subject to change and may be updated at time of award based on existing analysis workload. Leak Detection (SmartBall) Task Timing Site visit Within 30 days following Notice to Proceed (NTP) Project Planning Document 4 weeks before inspection Necessary taps made to pipeline TBD Inspection 8-10 weeks following NTP Leak investigation prior to demobilization 24 hours after completion of inspection Draft Report Leak, air pocket, and XY Alignment, >9 miles 15 weeks after inspection Final Report and Geodatabase 2 weeks after receipt of comments on Draft Report If no response to the Draft Report is received within 30 days of submittal, the report will be finalized and submitted to CCW. Transient Pressure Monitoring Task Timing Site visit Within 30 days following NTP Project Planning Document 2 weeks after site visit Field Inspection 1-3 weeks from Project Planning document approval 9 TECH a xylem brand Proposed Fee and Payment Schedule The estimated cost for this project is based on the information provided at the time of this proposal and detailed in the table below. DetectionLeak ONLY : . - Item Description Unit Unit Price Quantity Total Price 1 Transient Pressure Monitoring (30-Day Lump $7,500.00 1 $7,500.00 Study) Sum 2 Project Setup Planning and Site Visit Lump $11,330.00 1 $11,330.00 Sum 3 Mobilization Crew and equipment Lump $11,330.00 1 $11,330.00 mobilization to and from project site Sum 4 SmartBall Inspection, Leak and Air Pocket Lump $25,492.50 1 $25,492.50 Inspection -first 2 Miles Sum 5 (next 2 miles) >2 to 4 Miles Per Mile $11,330.00 2 $22,660.00 6 (next 3 miles) >4 to 7 Miles Per Mile $10,197.00 3 $30,591.00 7 (next 3 miles) >7 to 10 Miles Per Mile $9,064.00 3 $27,192.00 8 (remaining mileage) >10 Miles Per Mile $7,931.00 1.2 $9,517.20 9 SmartBall Additional Insertion Each $6,798.00 1 $6,798.00 10 SmartBall Report Lump $16,995.00 1 $16,995.00 Sum 11 SmartBall Mapping, X-Y Alignment Per Mile $7,364.50 11.2 $82,482.40 12 Flow Test to confirm flow under inspection Each $4,532.00 1 $4,532.00 conditions 13 Rangeline Tapping Services Each $5,783.00 1 $5,783.00 16"x 6"(Port Aransas Pipeline) 14 Rangeline Tapping Services Each $5,858.00 1 $5,858.00 20"x 6"(Port Aransas Pipeline) 15 Rangeline Tapping Services Each $6,080.00 2 $12,160.00 24"x 6"(Laguna Madre Crossing) 16 Subcontractor Management Fee (15% of subcontractor fee for Items 12-14) $3,570.15 Subtotal $283,791.25 17 Allowance for unforeseen expenditures(i.e. 20% of subtotal $56,758.25 traffic control, scaffolding, stand-by and delay charges, etc.) Estimated Total Project Cost $340,549.50 Notes and Assumptions • Pricing is based on available information provided to date. • All travel, shipping and related expenses are included in the mobilization and field data collection/inspection. 10 TECH a xylem brand If additional work is required due to circumstances outside of Pure Technologies' control or based on additional requests from CCW, a mutually agreed change order will be required. An allowance for unforeseen expenditures is assumed due to various unknowns at this time. Should unforeseen expenditures arise, a mutually agreed upon solution will be made between Pure and CCW on how/where to spend these funds. A penalty charge of$5,665.00 may apply should the work be delayed by CCW within two weeks prior to agreed mobilization date. A project delayed into the next calendar year may incur a price increase in the amount of the local Consumer Price Index. If deemed necessary, this penalty charge would be billed to Item 17 (Allowance for unforeseen expenditures). A penalty charge of$11,330.00 may apply should the work be cancelled by CCW within two weeks prior to agreed mobilization date. Any other charges incurred prior to the cancellation scenario shall be invoiced in full. If deemed necessary, this penalty charge would be billed to Item 3 (Mobilization). Upon a mutual agreement between Pure and CCW, a stand-by charge of$10,815.00 per crew day may apply if the project is delayed for 24 hours or more by CCW after mobilization. Circumstances outside the control of CCW would not result in a stand-by charge. The Project Setup and Mobilization line items are a combination of many tasks such as: o Available data review: drawings, details, plan and profile, flow information o Data gap analysis: review of any missing critical data, summarize, and communicate with client to obtain o Review additional data: review any additional data received from client o Summarize all available data into a high-level planning document o Conduct site visit: prepare a Site Visit plan, coordinate with client on details, perform site visit o Amend planning with Site Visit findings: Edit planning document in line with site visit findings o Finalize planning: draft planning document, share with client, discuss with client, finalize with client inputs/discussions o Mobilization: crew travel and equipment logistics from various parts of the US o Project management effort: to set up project administratively, and also to work with groups to allocate resources for planning, Site Visit, and Mobilization. Financial budgeting and setup. Pricing does not include custom equipment fabrication, traffic control, permitting, confined space rescue support, lighting for night inspections, or valve exercising. These 11 TECH a xylem brand tasks and their respective costs are the responsibility of CCW unless otherwise agreed, or included in the project estimate above. • Excavation and restoration work necessary for new access taps for insertion and extraction of the inspection tool are the responsibility of CCW. • Pipeline mapping costs includes the required re-insertion of the SmartBall tool into the line. • Cost associated with pipeline mapping appropriate only as add-on service to inspection, not a standalone mapping project. • Please note that Project Pricing included herein is valid for 120 days from the date of this proposal. • Pure Technologies' liability and insurance for this project are standard as detailed in the Standard Terms & Conditions included with this proposal. Non-standard conditions may be subject to a surcharge fee equal to 5% of the total project estimate. • All taxes, levies, duties, tariffs and other governmental charges, and any incremental increases thereto, shall be paid by CCW. Notwithstanding the foregoing, the parties acknowledge that the City of Corpus Christi is a Texas government and is exempt from such taxes, etc., and a tax-exemption certificate will be provided upon request of Pure Technologies. Pure Technologies reserves the right to adjust pricing and schedule of the affected goods to reflect any impact resulting from tariffs not already included in the proposed pricing. Pure Technologies is not obligated to deliver the goods and/or services until an agreement on the new price and/or schedule has been reached. 12 -F TE1 a xylem brand Payment Schedule Invoicing Schedule Service Fee Invoicing Period Transient Pressure Monitoring (30- $7,500.00 Upon completion of TPM study Day Study) Project Setup Planning and Site $11,330.00 Upon submittal of the Project Planning Document Visit Mobilization Crew and $11,330.00 equipment mobilization to and Upon mobilization to site from project site SmartBall Inspection, Leak and Air $1 15,452.70 Upon completion of SmartBall field work Pocket Inspection SmartBall Mapping, X-Y $82,482.40 Upon completion of SmartBall field work Alignment SmartBall Additional Insertion $6,798.00 Upon completion of SmartBall field work Flow Test to confirm flow under $4,532.00 Upon completion of SmartBall field work inspection conditions SmartBall Report $16,995.00 Upon delivery of DRAFT SmartBall report Rangeline Tapping Services& $27,371.15 Subcontractor Management Fee Upon completion of Taps Allowance for unforeseen $56,758.25 expenditures(i.e.traffic control, Upon mutual agreement of Pure Technologies and scaffolding, stand-by and delay City of Corpus Christi charges, etc.) 13 p TECH a xylem brand Standard Terms and Conditions CONDITIONS OF ENGAGEMENT FOR THE PROVISION OF SERVICES (North America) The Proposal is issued upon and is subject to these Conditions of Engagement. If the Proposal is accepted by the Client, these Conditions of Engagement and the Proposal will be deemed to form part of the Contract between the Client and Pure. 1. DEFINITIONS In these Conditions of Engagement the following definitions apply: "Client" means any person or persons, firm or company engaging Pure to provide the Services. "Contract" means the agreement awarded to Pure as a result of the Proposal. "Pure" means Pure Technologies Ltd., Pure Technologies U.S. Inc., PureHM Inc., PureHM U.S. Inc. or any of their affiliates, as the case may be, which submitted the Proposal and is a party to the Contract. "Proposal" means Pure's offer to carry out the Services and includes all related correspondence plus agreed written variations or amendments thereto. "Services" mean those services of whatever nature to be supplied by Pure under the Contract. "Site" means the facility, land, installation or premises to which Pure is granted access for the purposes of the Contract and may include any combination of the foregoing. 2. PURE'S OBLIGATIONS 2.1 Pure will perform the Services in accordance with the procedures described in the Proposal, using reasonable skill, care and diligence and consistent with industry standards. 2.2 Pure will ensure that the equipment used in performing the Services is in a good and functional state. 3. CLIENT'S OBLIGATIONS 3.1 The Client will provide to Pure full, good faith co-operation to assist Pure in providing the Services. Unless otherwise specified in the Proposal and without limiting the generality of the foregoing, the Client will at its own expense: (i) ensure, if required, access to private land will be given to Pure and that any official permits or permissions required for Pure to have access to the Site or carry out the Services are obtained and are in force for the duration of the Services; (ii) inform Pure in writing of any special circumstances or danger which the execution of the Services may entail or which are inherent in the Site, including the existence and identity of any known hazardous substance or material; (iii) perform such additional duties and responsibilities and provide such information and resources as are described in the Proposal. 3.2 The description of the Services and related compensation amount set out in the Proposal will be based upon information that the Client shall have provided to Pure, and assumptions that Pure shall have identified in the Proposal. The Client acknowledges that if any such information provided by Client is materially incomplete or inaccurate, or if the assumptions identified by Pure are not correct, then the parties will modify the Proposal to reflect the actual information, assumptions, and Services required, and the compensation to Pure will be adjusted accordingly using the change order process set out in the Contract, or if there is no such process, on an equitable basis. 3.3 Client will pay Pure within 30 days of Client's receipt of an invoice therefrom. Client acknowledges that Pure is entitled to payment for any and all Services performed hereunder up and until the date of the full completion of such Services. 3.4 Upon Client's termination of the provision of Services or any goods by Pure hereunder, Pure will be entitled to payment for any and all goods and Services provided up to and until the date Pure receives notice of termination from Client. Such payments will be at the rates as provided to Client in the Proposal. 3.5 The pricing provided in the proposal shall remain firm for 12 months from the date hereof. Thereafter, in recognition of the current inflationary environment and potential of labor and component cost increases to Pure, a price adjustment may be requested by Pure to account for such cost increase. 4. PROPRIETARY AND CONFIDENTIAL INFORMATION 4.1 All reports generated in the performance of the Services and delivered by Pure to the Client will become the property of the Client. 4.2 Pure's equipment which is made available to the Client in connection with the Contract and the raw data generated in the performance of the Services will remain the sole and exclusive property of Pure. The Client will not acquire any proprietary rights in Pure's equipment, systems, software, technology, inventions (whether or not patentable), patents, patent applications, documentation, specifications, designs, data, databases, methods, processes or know-how ("Pure's Proprietary Technology"). Any modifications or improvements to the Pure's Proprietary Technology made during the performance of the Services will be the sole and exclusive property of Pure. 4.3 Both parties agree to keep confidential all documentation and information provided by the other during the performance of the Contract. The obligations set out in this clause 4.3 will remain in full force and effect after any termination or expiry, as the case may be, of the Contract. Notwithstanding the foregoing, the parties acknowledge that the City of Corpus Christi (City) is a Texas governmental entity subject to the Texas Public Information Act (the "Act"). Should City receive a request for disclosure of Confidential Information pursuant to the Act, the City will promptly provide Pure Technologies U.S., Inc. (Consultant/Contractor) notice of such request in accordance with Section 552.305 of the Texas Government Code so that the Consultant/Contractor may avail itself of any opportunities to establish reasons why the information should be withheld prior to disclosing such Confidential Information. The burden of establishing the applicability of exceptions to disclosure of Confidential Information under the Act resides with Consultant/Contractor. Should Contractor be unable to establish a valid exception from disclosure or exclusion from the Act or protective order, then, the City may release the information, solely to the extent necessary to comply with the Act. 4.4 Notwithstanding anything herein to the contrary, Contractor will have a limited, non-exclusive, royalty-free license to utilize data collected and received in the performance of services hereunder for purposes of (a) providing services, (b) analyzing and improving the services, and (iii) internal research and development for the benefit of Contractor and Client's clients. a xylem 5. LIABILITY AND WARRANTIES 5.1 Pure will indemnify and hold the Client harmless against any expense, demand, liability, loss, claim, lawsuit or proceeding whatsoever in respect of personal injury to or the death of any person, or any loss, destruction or damage to any tangible property and arising directly or indirectly from the negligence of Pure, its employees, servants or agents except to the extent caused by the negligence of the Client or any person for whom the Client is responsible. To the extent allowed by Texas law, the Client will similarly indemnify Pure. 5.2 Pure will not be liable for any loss of production, loss of use of property, loss of revenue or profit, equipment downtime, business interruption, loss of goodwill, loss of anticipated savings, cost of procurement of substitute goods or services, or for any consequential, indirect, incidental, or special loss or damage suffered by the Client or any third party, or for any punitive damages, even if advised of the possibility thereof and notwithstanding the failure of essential purpose of any remedy. 5.3 Pure's cumulative liability hereunder, whether in contract, tort, or otherwise, will in no event exceed the greater of(i)the aggregate consideration paid by the City to Pure for the portion of the Services that gave rise to the liability, or (ii) $2 million; provided, however, that this clause shall not limit Pure's indemnification obligations hereunder. The report(s)and any other recommendations or advice made by Pure relating to the pipeline or the Services will be made in accordance with the procedures described in the Proposal, using reasonable skill, care and diligence consistent with industry standards, but do not and will not constitute a warranty of the pipeline's quality, capacity, safety or fitness for purpose. Pure will not be liable to the Client for any liability or damages that arise from the Client's reliance upon or application or use of such final report or recommendations or advice made by Pure in relation to the pipeline or Services, and the Client will indemnify Pure against any liability to third parties resulting therefrom. 5.4 Pure's warranties for the Services will be set out in the Contract. Pure disclaims all implied or statutory warranties or conditions, including of merchantability, merchantable quality, durability, or fitness for particular purpose to the extent allowed by applicable law. This means Pure's warranty obligations will be limited to what is expressly set out in the Contract. 6. Insurance Pure will provide the Client with a certificate of insurance evidencing the following coverages: 6.1 Commercial General Liability $2,000,000 6.2 Automobile Liability $1,000,000 6.3 Workers Compensation Statutory 6.4 Professional Liability $500,000 7. Solicitation of Employees Pure and Client (the "Parties") agree that, for the term of Client's engagement of Pure, and for one (1) year thereafter, the Parties will not: 7.1 directly or indirectly solicit, or attempt to solicit or endeavour to cause any employee, volunteer or consultant of the other Party to leave his or her employment, volunteer or consulting relationship; or 7.2 directly or indirectly induce or attempt to induce any customer or prospective customer of the other Party to cease doing business in whole or in part with the other Party or solicit the business of any customer or prospective customer of the other Party for a purpose which is competitive with the Party's business. 7.3 Notwithstanding Sections 7.1 and 7.2 above, those sections shall not apply to the solicitation, recruitment, or hiring of any individual who responds to a bona fide, publicly posted employment advertisement or announcement and is hired through such public process, provided that no direct or indirect solicitation in violation of Section 7.1 occurs. 8. Special Conditions/Acknowledgement of Events. Each Party acknowledge and agree that the global COVID-19 pandemic ("COVID-19") is ongoing, dynamic, unpredictable, and as such may impact the ability of Pure to meet its obligations under this Agreement. The Parties agree that, for so long as there is an impact of COVID-19 on Pure's performance, all performance efforts by Pure will be on a reasonable efforts basis only and Pure shall not be responsible for failure to meet its obligations, to the extent that it is precluded from doing so as a result of COVID-19. The Parties shall work, in good faith, to make any reasonable adjustments that may be required as a result of COVID-19. TEMLOOIES a xylem brand Appendix A: SmartBall Inspection Considerations Pipeline Pressure Inline leak detection technology is inherently more sensitive than external methods and correlators because it brings the acoustic sensor within one pipe diameter of the leak. Acoustic leak detection functions by detecting the acoustic signature generated by the sudden drop in pressure of water exiting the pipeline at the site of a leak. SmartBall technology requires a minimum pressure differential between internal and external pipeline conditions of 15 psi (1 bar)for acoustic leak detection. For pipelines in high water tables or river crossings, the resultant hydrostatic head acting against the exterior of the pipe wall must be taken into consideration. During the SmartBall inspection, CCW staff will need to operate the system to maintain pipeline pressures as necessary to accommodate the needs of its customers. A review of the pipeline will be performed as part of the planning process to identify potential areas where the pressure may drop below the minimum required pressure differential for acoustic leak detection. Additional factors that affect acoustic leak detection include tunnels and encasements where the sudden drop in pressure that causes the acoustic signature generated by the leak may not occur at the site of the leak inside the pipeline, but rather at the point where the fluid exits the tunnel or encasement if the 'leak path' becomes pressurized between the pipe wall and the tunnel or encasement. Approximate pressure measurements may be requested prior to and/or during the inspection to ensure the pipeline is operating within expected conditions. Insertion and Extraction Requirements The SmartBall tool is typically inserted through a 4-inch (100mm) or larger full-bore flanged valve into an active pipeline. When using standard insertion equipment, the valve should have direct access to the pipeline with no bends in the connecting riser. The minimum internal diameter of valve opening and pipeline access must be no less than 3.75 inches (95.3mm). A minimum of 4 feet(1.3m) of overhead clearance is required above the flange of the insertion valve. Alternative methods for insertion include utilizing check valves in pump stations, areas where the pipeline transitions to gravity, or pumping the SmartBall through offset piping such as a hydrant or bypass. If a hot tap is being performed to add an access point, the drill bit must be at least 3.75 inches (95.3mm) in diameter and centered within the newly installed valve. Note that a 4-inch valve on an access point installed with a drill bit smaller than 3.75 inches will not provide the clearance needed. The SmartBall tool is typically extracted from the pipeline by installing a pressurized stack on a 4-inch (100mm)full bore flanged valve, or larger, with a minimum internal diameter no less than 3.75 inches(95.3mm). The valve should be on the crown of the pipe and be located on a flat section of pipeline with no vertical slopes or horizontal bends 30 feet(9m) upstream of the valve. A minimum of 16 feet(5m) of overhead clearance is required above the flange of the extraction valve. It is possible to core the roof of a vault above the valve with a 6-inch (150mm) or greater opening if the vault does not have enough overhead clearance. The extraction net utilizes a tracking sensor and a camera to confirm the SmartBall tool has been caught. Other extraction methods, such as retrieval from a reservoir using a remotely operated vehicle, are possible and can be evaluated by the SmartBall technical experts for feasibility. 18 TECH a xylem brand Tracking Prior to the inspection, tracking sensors will be installed along the pipeline to track the position of the SmartBall tool. The tracking sensors function best when installed as close as possible to the water column in the pipeline and are attached to metal surfaces of pipeline appurtenances, such as air release valves, flanges, valves, or any other contact point on the pipeline. At these locations, Pure Technologies staff clean an area of the pipe approximately 3 inches by 3 inches (75mm by 75mm) and will adhere tracking sensors using a fast-drying epoxy. Computers synchronized with the SmartBall tool will be connected to the tracking sensors to calculate the location and velocity of the SmartBall tool as it approaches and passes the tracking location. Tracking teams will set up at tracking sensors before deploying the SmartBall tool and will 'leap-frog'to subsequent tracking locations as the SmartBall tool traverses the pipeline on its way to the extraction point. A tracking plan and details for installing tracking sensors will be included in the PPD submitted to CCW prior to the inspection. Flow Requirements The SmartBall tool requires a fluid velocity of 0.5 feet per second (0.15 meters per second)to traverse flat sections of pipeline. The ideal fluid velocity for most pipelines is 2 to 4 feet per second (0.6 to 1.2 meters per second)for traversing slopes and allowing tracking teams to relocate to the next tracking location. The maximum fluid velocity before data quality is impacted is 6 feet per second (1.8 meters per second)for leak and air pocket inspection and 3 feet per second (0.9 meters per second)for SmartBall mapping. The SmartBall tool usually travels at approximately 70% of average fluid velocity. CCW staff will control the flow rate to confirm the requisite velocity during tool deployment as defined in the PPD. Pure Technologies will also evaluate pumping rates and cycle times to determine if supplemental water will be required to complete the inspection. It should be noted that air pocket and leak detection surveys should be performed as close to typical operating conditions as feasible. Live Pipeline Inspection Risks Despite meticulous planning and preparation, live pipeline inspection carries an inherent risk that cannot be avoided. There is a possibility that the inspection platform could encounter problems during the inspection run that could lead to loss of data, requiring a re-inspection or at worst the tool getting stuck in the pipeline due to unforeseen or unknown obstructions. The planning process is used to mitigate any potential risks. 19 Attachment B: Insurance Requirements I. CONTRACTOR'S LIABILITY INSURANCE A. Contractor must not commence work under this contract until all insurance required has been obtained and such insurance has been approved by the City. Contractor must not allow any subcontractor, to commence work until all similar insurance required of the subcontractor has been obtained. B. Contractor must furnish to the City's Risk Manager and Contract Administrator one (1 ) copy of Certificates of Insurance with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City's Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies by endorsement, and a waiver of subrogation endorsement is required on all applicable policies. Endorsements must be provided with Certificate of Insurance. Project name and/or number must be listed in Description Box of Certificate of Insurance. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30-day advance written notice of Bodily Injury and Property Damage cancellation, non-renewal, material Per occurrence - aggregate change or termination required on all certificates and policies. COMMERCIAL GENERAL LIABILITY $1 ,000,000 Per Occurrence including: 1 . Commercial Broad Form 2. Premises - Operations 3. Products/ Completed Operations 4. Contractual Liability 5. Independent Contractors 6. Personal Injury- Advertising Injury AUTO LIABILITY (including) $500,000 Combined Single Limit 1 . Owned 2. Hired and Non-Owned 3. Rented/Leased WORKERS'S COMPENSATION Statutory and complies with Part II (All States Endorsement if Company is of this not domiciled in Texas) Exhibit. Employer's Liability $500,000/$500,000/$500,000 Pagel of 3 PROFESSIONAL LIABILITY $500,000 Per Claim (Errors and Omissions) (Defense costs not included in face value of the policy) If claims made policy, retro date must be prior to inception of agreement, have extended reporting period provisions and identify any limitations regarding who is insured. C. In the event of accidents of any kind related to this contract, Contractor must furnish the Risk Manager with copies of all reports of any accidents within 10 days of the accident. II. ADDITIONAL REQUIREMENTS A. Applicable for paid employees, Contractor must obtain workers' compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers' compensation coverage provided must be in statutory amounts according to the Texas Department of Insurance, Division of Workers' Compensation. An All States Endorsement shall be required if Contractor is not domiciled in the State of Texas. B. Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Contractor's sole expense, insurance coverage written on an occurrence basis by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. C. Contractor shall be required to submit renewal certificates of insurance throughout the term of this contract and any extensions within 10 days of the policy expiration dates. All notices under this Exhibit shall be given to City at the following address: City of Corpus Christi Attn: Risk Manager P.O. Box 9277 Corpus Christi, TX 78469-9277 D. Contractor agrees that, with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: • List the City and its officers, officials, employees, and volunteers, as additional insureds by endorsement with regard to operations, completed operations, and activities of or on behalf of the named insured performed under contract with the City, with the exception of the workers' compensation policy; • Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi, where the City is an additional insured shown on the policy; Page 2 of 3 • Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and • Provide thirty (30) calendar days advance written notice directly to City of any, cancellation, non-renewal, material change or termination in coverage and not less than ten (10) calendar days advance written notice for nonpayment of premium. E. Within five (5) calendar days of a cancellation, non-renewal, material change or termination of coverage, Contractor shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Contractor's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. F. In addition to any other remedies the City may have upon Contractor's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Contractor to stop work hereunder, and/or withhold any payment(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. G. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor's or its subcontractor's performance of the work covered under this contract. H. It is agreed that Contractor's insurance shall be deemed primary and non-contributory with respect to any insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. I. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. No bond is required for this agreement. 2026 Insurance Requirements Exhibit Contracts for General Services - Services Performed Onsite - Professional Liability 01/01/2026 Risk Management - Legal Dept. Page 3 of 3 Attachment C: Warranty Requirements 12. Representation and Warranty. (a) For a period of ninety (90) days from the date of invoice, unless otherwise expressly set forth in the quotation or sales form or order acknowledgment, Service Provider represents and warrants to Customer that it shall perform the Services using personnel of required skill, experience and qualifications and in a professional and workmanlike manner in accordance with generally recognized industry standards for similar services and shall devote adequate resources to meet its obligations under this Agreement ("Warranty"). (b) The Service Provider shall not be liable for a breach of the Warranty set forth in Section 12(a) unless Customer gives written notice of the defective Services, reasonably described, to Service Provider within thirty (30) days of the time when Customer discovers or reasonably should have discovered that the Services were defective. (c) Subject to Section 12(b), Service Provider shall, in its sole discretion, either: (i) repair or re-perform such Services; or (ii) credit or refund the price of such Services at the pro rata contract rate. (d) THE FOREGOING WARRANTY IS EXCLUSIVE AND IN LIEU OF ANY AND ALL OTHER EXPRESS OR IMPLIED WARRANTIES, GUARANTEES, CONDITIONS OR TERMS OF WHATEVER NATURE RELATING TO THE SERVICES PROVIDED HEREUNDER, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE, WHICH ARE HEREBY EXPRESSLY DISCLAIMED AND EXCLUDED. EXCEPT AS OTHERWISE PROVIDED BY LAW, BUYER'S EXCLUSIVE REMEDY AND SERVICE PROVIDER'S AGGREGATE LIABILITY FOR BREACH OF THE FOREGOING WARRANTY IS LIMITED TO REMEDIES SET FORTH IN SECTION 12(c). Page 1 of 1