HomeMy WebLinkAboutC-2488ORIGINAL
CITY OF ARCADIA ! t 00 -6t)
SHORT -FORM CONSTRUCTION CONTRACT C
INSTALLATION OF INSERTABLE FLOW METER AT ST. JOSEPH PLANT
PROJECT NO. 72860910
This Contract is made and entered into this &-1 day of ('_e , 2009
by and between the City of Arcadia, a municipal organization organized under the laws of the
State of California with its principal place of business at 240 West Huntington Drive, Arcadia,
California 91066 ( "City ") and E &R Construction, Inc., a California Corporation with its
principal place of business at 945 Wellington Rd, Sam Dimas, CA 91773 ( "Contractor "). City
and Contractor are sometimes individually referred to as "Party" and collectively as "Parties" in
this Contract.
RECITALS
A. City is a municipal corporation organized under the laws of the State of
California, with power to contract for services necessary to achieve its purpose.
B. Contractor desires to perform and assume responsibility for the provision of
certain construction services required by the City on the terms and conditions set forth in this
Contract. Contractor represents that it is experienced in providing Installation of Insertable
Flow Meter services to public clients, that it and its employees or subcontractors have all
necessary licenses and permits to perform the Services in the State of California, and that is
familiar with the plans of City.
C. City desires to engage Contractor to render such services for the Installation of
Insertable Flow Meter at St. Joseph Plant Project ( "Project ") as set forth in this Contract.
The City and the Contractor for the considerations stated herein agree as follows:
CONTRACT
1. Parties.
1.1 Cites presentative. The City hereby designates Pat Malloy, Assistant City
Manger /Public Works Services Director, or his or her designee, to act as its representative for
the performance of this Contract ( "City's Representative "). City's Representative shall have the
power to act on behalf of the City for all purposes under this Contract. Contractor shall not
accept direction or orders from any person other than the City's Representative or his or here
designee.
1.2 Contractor's Representative. Before starting the Work, Contractor shall submit in
writing the name, qualifications and experience of its proposed representative who shall be
subject to the review and approval of the City ( "'Contractor's Representative "). Following
approval by the City, the Contractor's Representative shall have full authority to represent and
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act on behalf of the Contractor for all purposes under this Contract. The Contractor's
Representative shall supervise and direct the Work, using his best skill and attention, and shall be
responsible for all construction means, methods, techniques, sequences and procedures and for
the satisfactory coordination of all portions of the Work under this Contract. Contractor's
Representative shall devote full time to the Project and either he or his designee, who shall be
acceptable to the City, shall be present at the Work site at all times that any Work is in progress
and at any time that any employee or subcontractor of Contractor is present at the Work site.
Arrangements for responsible supervision, acceptable to the City, shall be made for emergency
Work which may be required. Should Contractor desire to change its Contractor's
Representative, Contractor shall provide the information specified above and obtain the City's
written approval.
2. Incorporation of Documents. This Contract includes and hereby incorporates in full by
reference the following documents, including all exhibits, drawings, specifications and
documents therein, and attachments and addenda thereto: General Liability Insurance,
Automobile Insurance, Worker's Compensation Insurance, City Business License,
Performance Bond, and Payment Bond.
3. Contractor's Basic Obligation; Scope of Work. Contractor promises and agrees, at its
own cost and expense, to furnish to the Owner all labor, materials, tools, equipment, services,
and incidental and customary work necessary to fully and adequately complete the Project,
including all structures and facilities necessary for the Project or described in the Contract
(hereinafter sometimes referred to as the "Work "), for a Total Contract Price as specified
pursuant to this Contract. All Work shall be subject to, and performed in accordance with the
above referenced documents, as well as the exhibits attached hereto and incorporated herein by
reference. The plans and specifications for the Work are further described in Exhibit "A"
attached hereto and incorporated herein by this reference. Special conditions, if any, relating to
the Work are described in Exhibit "B" attached hereto and incorporated herein by this reference.
4. Change in Scope of Work. Any change in the scope of the Work, method of
performance, nature of materials or price thereof, or any other matter materially affecting the
performance or nature of the Work shall not be paid for or accepted unless such change, addition
or deletion is approved in advance and in writing by a valid change order executed by the City.
5. Period of Performance and Liquidated Damages. Contractor shall perform and complete
all Work under this Contract within Sixty (60) Calendar days, beginning the effective date of
the Notice to Proceed ( "Contract Time "). Contractor shall perform its Work in strict accordance
with any completion schedule, construction schedule or project milestones developed by the
City. Such schedules or milestones may be included as part of Exhibits "A" or "B" attached
hereto, or may be provided separately in writing to the Contractor. Contractor agrees that if such
Work is not completed within the aforementioned Contract Time and /or pursuant to any such
completion schedule, construction schedule or project milestones developed pursuant to
provisions of the Contract, it is understood, acknowledged and agreed that the City will suffer
damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as
fixed and liquidated damages the sum of FIVE HUNDRED DOLLARS AND NO CENTS
($500.00) per day for each and every calendar day of delay beyond the Contract Time or beyond
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any completion schedule, construction schedule or Project milestones established pursuant to the
Contract.
6. Standard of Performance; Performance of Employees. Contractor shall perform all Work
under this Contract in a skillful and workmanlike manner, and consistent with the standards
generally recognized as being employed by professionals in the same discipline in the State of
California. Contractor represents and maintains that it is skilled in the professional calling
necessary to perform the Work. Contractor warrants that all employees and subcontractors shall
have sufficient skill and experience to perform the Work assigned to them. Finally, Contractor
represents that it, its employees and subcontractors have all licenses, permits, qualifications and
approvals of whatever nature that are legally required to perform the Work, including a City
Business License, and that such licenses and approvals shall be maintained throughout the term
of this Contract. As provided for in the indemnification provisions of this Contract, Contractor
shall perform, at its own cost and expense and without reimbursement from the City, any work
necessary to correct errors or omissions which are caused by the Contractor's failure to comply
with the standard of care provided for herein. Any employee who is determined by the City to
be uncooperative, incompetent, a threat to the safety of persons or the Work, or any employee
who fails or refuses to perform the Work in a manner acceptable to the City, shall be promptly
removed from the Project by the Contractor and shall not be re- employed on the Work.
7. Substitutions / "Or Equal ".
7.1 Pursuant to Public Contract Code Section 3400(b) the City may make a finding
that designates certain products, things, or services by specific brand or trade name. Unless
specifically designated in this Contract, whenever any material, process, or article is indicated or
specified by grade, patent, or proprietary name or by name of manufacturer, such Specifications
shall be deemed to be used for the purpose of facilitating the description of the material, process
or article desired and shall be deemed to be followed by the words "or equal."
7.2 Contractor may, unless otherwise stated, offer for substitution any material,
process or article which shall be substantially equal or better in every respect to that so indicated
or specified in this Contract. However, the City may have adopted certain uniform standards for
certain materials, processes and articles. Contractor shall submit requests, together with
substantiating data, for substitution of any "or equal" material, process or article no later than
thirty -five (35) days after award of the Contract. To facilitate the construction schedule and
sequencing, some requests may need to be submitted before thirty -five (35) days after award of
Contract. If the City has specified particular deadlines prior to the thirty -five day period after
contract award, such deadlines, if any, shall be set forth in the Special Conditions attached
hereto. Provisions regarding submission of "or equal" requests shall not in any way authorize an
extension of time for performance of this Contract. If a proposed "or equal" substitution request
is rejected, Contractor shall be responsible for providing the specified material, process or article.
The burden of proof as to the equality of any material, process or article shall rest with the
Contractor.
7.3 The City has the complete and sole discretion to determine if a material, process
or article is an "or equal" material, process or article that may be substituted. Data required to
substantiate requests for substitutions of an "or equal" material, process or article data shall
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include a signed affidavit from the Contractor stating that, and describing how, the substituted
"or equal" material, process or article is equivalent to that specified in every way except as listed
on the affidavit. Substantiating data shall include any and all illustrations, specifications, and
other relevant data including catalog information which describes the requested substituted "or
equal" material, process or article, and substantiates that it is an "or equal" to the material,
process or article. The substantiating data must also include information regarding the durability
and lifecycle cost of the requested substituted "or equal" material, process or article. Failure to
submit all the required substantiating data, including the signed affidavit, to the City in a timely
fashion will result in the rejection of the proposed substitution.
7.4 The Contractor shall bear all of the City's costs associated with the review of
substitution requests. The Contractor shall be responsible for all costs related to a substituted "or
equal" material, process or article. Contractor is directed to the Special Conditions (if any) to
review any findings made pursuant to Public Contract Code section 3400.
8. Stormwater Pollution Prevention Plan. If applicable, the Contractor shall file a Notice of
Intent and procure a State Water Resources Control Board (State Water Board) National
Pollutant Discharge Elimination System General Permit for Waste Discharge Requirements for
Discharges of Storm Water Runoff Associated with Construction Activity (Permit). The
Contractor shall be solely responsible for preparing and implementing a Storm Water Pollution
Prevention Plan (SWPPP) prior to initiating work. The Contractor shall be responsible for
procuring, implementing and complying with the provisions of the Permit and the SWPPP,
including the standard provisions, monitoring and reporting requirements as required by Permit.
It shall be the responsibility of the Contractor to evaluate and include in the Total Contract Price,
the cost of procuring the Permit and preparing the SWPPP as well as complying with the SWPPP
and any necessary revisions to the SWPPP. The Contractor shall also include in the Total
Contract Price the cost of monitoring as required by the Permit.
9. Control and Payment of Subordinates; Contractual Relationship. City retains Contractor
on an independent contractor basis and Contractor is not an employee of City. Any additional
personnel performing the work governed by this Contract on behalf of Contractor shall at all
times be under Contractor's exclusive direction and control. Contractor shall pay all wages,
salaries, and other amounts due such personnel in connection with their performance under this
Contract and as required by law. Contractor shall be responsible for all reports and obligations
respecting such additional personnel, including, but not limited to: social security taxes, income
tax withholding, unemployment insurance, and workers' compensation insurance.
10. City's Basic Obligation. City agrees to engage and does hereby engage Contractor as an
independent contractor to furnish all materials and to perform all Work according to the terms
and conditions herein contained for the sum set forth above. Except as otherwise provided in the
Contract, the City shall pay to Contractor, as full consideration for the satisfactory performance
by the Contractor of the services and obligations required by this Contract, the above referenced
compensation in accordance with compensation provisions set forth in the Contract.
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11. Compensation and Pavment.
11.1 Amount of Compensation. As consideration for performance of the Work
required herein, City agrees to pay Contractor the Total Contract Price of FOURTEEN
THOUSAND FIVE HUNDRED DOLLARS AND NO CENTS ($14,500.00) ( "Total Contract
Price ") provided that such amount shall be subject to adjustment pursuant to the applicable terms
of this Contract or written change orders approved and signed in advance by the City.
11.2 Payment of Compensation. If the Work is scheduled for completion in thirty (30)
or less calendar days, City will arrange for payment of the Total Contract Price upon completion
and approval by City of the Work. If the Work is scheduled for completion in more than thirty
(30) calendar days, City will pay Contractor on a monthly basis as provided for herein. On or
before the fifth (5th) day of each month, Contractor shall submit to the City an itemized
application for payment in the format supplied by the City indicating the amount of Work
completed since commencement of the Work or since the last progress payment. These
applications shall be supported by evidence which is required by this Contract and such other
documentation as the City may require. The Contractor shall certify that the Work for which
payment is requested has been done and that the materials listed are stored where indicated.
Contractor may be required to furnish a detailed schedule of values upon request of the City and
in such detail and form as the City shall request, showing the quantities, unit prices, overhead,
profit, and all other expenses involved in order to provide a basis for determining the amount of
progress payments.
City shall review and pay all progress payment requests in accordance with the
provisions set forth in Section 20104.50 of the California Public Contract Code. No progress
payments will be made for Work not completed in accordance with this Contract.
11.3 Contract Retentions. From each approved progress estimate, ten percent (10 %)
will be deducted and retained by the City, and the remainder will be paid to Contractor. All
Contract retainage shall be released and paid to the Contractor and subcontractors pursuant to
California Public Contract Code Section 7107.
11.4 Other Retentions. In addition to Contract retentions, the City may deduct from
each progress payment an amount necessary to protect City from loss because of. (1) liquidated
damages which have accrued as of the date of the application for payment; (2) any sums
expended by the City in performing any of Contractor's obligations under the Contract which
Contractor has failed to perform or has performed inadequately; (3) defective Work not
remedied; (4) stop notices as allowed by state law; (5) reasonable doubt that the Work can be
completed for the unpaid balance of the Total Contract Price or within the scheduled completion
date; (6) unsatisfactory prosecution of the Work by Contractor; (7) unauthorized deviations from
the Contract; (8) failure of the Contractor to maintain or submit on a timely basis proper and
sufficient documentation as required by the Contract or by City during the prosecution of the
Work; (9) erroneous or false estimates by the Contractor of the value of the Work performed;
(10) any sums representing expenses, losses, or damages as determined by the City, incurred by
the City for which Contractor is liable under the Contract; and (11) any other sums which the
City is entitled to recover from Contractor under the terms of the Contract or pursuant to state
law, including Section 1727 of the California Labor Code. The failure by the City to deduct any
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of these sums from a progress payment shall not constitute a waiver of the City's right to such
sums.
11.5 Substitutions for Contract Retentions. In accordance with California Public
Contract Code Section 22300, the City will permit the substitution of securities for any monies
withheld by the City to ensure performance under the Contract. At the request and expense of
the Contractor, securities equivalent to the amount withheld shall be deposited with the City, or
with a state or federally chartered bank in California as the escrow agent, and thereafter the City
shall then pay such monies to the Contractor as they come due. Upon satisfactory completion of
the Contract, the securities shall be returned to the Contractor. For purposes of this Section and
Section 22300 of the Public Contract Code, the term "satisfactory completion of the contract"
shall mean the time the City has issued written final acceptance of the Work and filed a Notice of
Completion as required by law and provisions of this Contract. The Contractor shall be the
beneficial owner of any securities substituted for monies withheld and shall receive any interest
thereon. The escrow agreement used for the purposes of this Section shall be in the form
provided by the City.
12. Title to Work. As security for partial, progress, or other payments, title to Work for
which such payments are made shall pass to the City at the time of payment. To the extent that
title has not previously been vested in the City by reason of payments, full title shall pass to the
City at delivery of the Work at the destination and time specified in this Contract. Such
transferred title shall in each case be good, free and clear from any and all security interests,
liens, or other encumbrances. Contractor promises and agrees that it will not pledge,
hypothecate, or otherwise encumber the items in any manner that would result in any lien,
security interest, charge, or claim upon or against said items. Such transfer of title shall not
imply acceptance by the City, nor relieve Contractor from the responsibility to strictly comply
with the Contract, and shall not relieve Contractor of responsibility for any loss of or damage to
items.
13. Termination.
13.1 If Contractor fails to commence work as provided in this Contract, or fails to
make delivery of materials promptly as ordered, or to maintain the rate of delivery or progress of
the work in such manner as in the opinion of City's authorized representative will ensure a full
compliance with the Contract within the time limit, or if in the opinion of City's authorized
representative, Contractor is not carrying out the provisions of the contract in their true intent and
meaning, written notice will be served on Contractor and its Surety to provide, within a
specified time to be fixed by City's authorized representative, for satisfactory compliance with
the Contract. If Contractor neglects or refuses to comply with such notice within the time therein
fixed, he /she shall not thereafter exercise any rights under said Contract or be entitled to receive
any of the benefits thereof, except as hereinafter provided, and City's authorized representative
may, with the approval of the City Council, perform any part of the work or purchase any or all
of the material included in the Contract or required for the completion thereof, or take possession
of all or any part of the machinery, tools, appliances, materials and supplies used in the work
covered by the Contract or that have been delivered by or on account of Contractor for use in
connection therewith, and the same may be used either directly by City or by other parties for it,
in the completion of the work.
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13.2 City has the right to terminate or abandon any portion or all of the work under this
Contract by giving ten (10) calendar days written notice to Contractor. In such event, City shall
be immediately given title and possession to all original field notes, drawings and specifications,
written reports and other documents produced or developed for that portion of the work
completed and /or being abandoned. City shall pay Contractor the reasonable value of services
rendered for any portion of the work completed prior to termination. If said termination occurs
prior to completion of any task for the Project for which a payment request has not been
received, the charge for services performed during such task shall be the reasonable value of
such services, based on an amount mutually agreed to by City and Contractor of the portion of
such task completed but not paid prior to said termination. City shall not be liable for any costs
other than the charges or portions thereof which are specified herein. Contractor shall not be
entitled to payment for unperformed services, and shall not be entitled to damages or
compensation for termination of work.
13.3 Contractor may terminate its obligation to provide further services under this
Contract upon thirty (30) calendar days' written notice to City only in the event of substantial
failure by City to perform in accordance with the terms of this Contract through no fault of
Contractor.
14. Completion of Work. When the Contractor determines that it has completed the Work
required herein, Contractor shall so notify City in writing and shall furnish all labor and material
releases required by this Contract. City shall thereupon inspect the Work. If the Work is not
acceptable to the City, the City shall indicate to Contractor in writing the specific portions or
items of Work which are unsatisfactory or incomplete. Once Contractor determines that it has
completed the incomplete or unsatisfactory Work, Contractor may request a reinspection by the
City. Once the Work is acceptable to City, City shall pay to Contractor the Total Contract Price
remaining to be paid, less any amount which City may be authorized or directed by law to retain.
Payment of retention proceeds due to Contractor shall be made in accordance with Section 7107
of the California Public Contract Code.
15. Contract Interpretation. Should any question arise regarding the meaning or import of
any of the provisions of this Contract or written or oral instructions from City, the matter shall
be referred to City's Representative, whose decision shall be binding upon Contractor.
16. Loss and Damage. Except as may otherwise be limited by law, the Contractor shall be
responsible for all loss and damage which may arise out of the nature of the Work agreed to
herein, or from the action of the elements, or from any unforeseen difficulties which may arise or
be encountered in the prosecution of the Work until the same is fully completed and accepted by
City.
17. Indemnification.
17.1 To the fullest extent permitted by law, the Contractor shall defend, indemnify and
hold harmless the City, its respective officials, officers, agents, employees, and representatives
( "Indemnitees ") from any and all claims, demands, causes of action, costs, expenses, liabilities,
losses, damages (including without limitation the payment of all consequential damages and
attorneys fees and other related costs and expenses) or injuries, in law or equity, regardless of
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whether the allegations are false, fraudulent, or groundless, to tangible property or persons
(including wrongful death, accidents or injuries arising from the alleged failure to inspect or to
maintain traffic controllers or traffic signals, injuries or damages occurring during the transport
of products or in rendering services under the Contract Documents, such as automobile
accidents, trip /slip and fall accidents and third party assaults) arising out of or resulting from the
performance of the Work or this Contract (including claims made by subcontractors for
nonpayment), to the extent that the acts, omissions or willful misconduct are attributable to the
Contractor or anyone employed directly or indirectly by any of them. Contractor shall defend, at
Contractor's own cost, expense and risk, with legal counsel of Indemnitee's choosing, any and
all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or
instituted against the City, its respective officials, officers, agents, employees and
representatives. To the extent of its liability, Contractor shall pay and satisfy any judgment,
award or decree that may be rendered against the City and its respective officials, officers,
agents, employees, and representatives, in any such suit, action or other legal proceeding.
Contractor shall reimburse the City and its respective officials, officers, agents, employees, and
representatives for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. The only limitations on this provision
shall be those imposed by Civil Code section 2782.
17.2 The duty to defend and to hold harmless, as set forth above, shall include the duty
to defend as established by Section 2778 of the California Civil Code, and the duty to defend
shall arise upon the making of any claim or demand against the City, its respective officials,
officers, agents, employees and representatives, notwithstanding that no adjudication of the
underlying facts has occurred, and whether or not Contractor has been named in the claim or
lawsuit.
17.3 Nothing contained in the preceding sections shall be deemed to obligate the
Contractor to indemnify the City or any of the other Indemnitees, against liability for damages or
any other loss, damage or expense sustained, suffered or incurred on account of death or bodily
injury to active persons or injury to property caused by the sole negligence or willful misconduct
of the City or any of the other Indemnitees set forth above. Therefore, if it is determined by legal
proceedings or agreement, that the Contractor has no direct contributory or incidental negligence
or other obligation to the City or the other Indemnitees, and the Contractor is in no way a proper
party to a particular claim, then the Contractor shall not be obligated to hold the City or any
Indemnitees harmless with respect to said claim. However, until such determination is made by
legal proceedings or agreement, or if the Contractor is found to have any degree of direct or
contributory negligence or if it is determined that the Contractor is in any way or to any degree a
proper party to said claim, then the Contractor's obligations under all of the terms and provisions
of the preceding section shall remain in full force and effect.
17.4 Nothing in this provision, or elsewhere in the Contract Documents, shall be
deemed to relieve the Contractor of its duty to defend the City or any Indemnitee, as specified
under this Article, pending a determination of the respective liabilities of the City or any
Indemnitee, by legal proceeding or agreement.
17.5 In furtherance to, but not in limitation of the indemnity provisions in this
Contract, Contractor hereby expressly and specifically agrees that its obligation to indemnify,
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defend and hold harmless as provided in this Contract shall not in any way be affected or
diminished by any statutory or constitutional immunity it enjoys from suits by its own employees
or from limitations of liability or recovery under workers' compensation laws.
Insurance.
17.6 Time for Compliance. Contractor shall not commence Work under this Contract
until it has provided evidence satisfactory to the City that it has secured all insurance required
under this section. In addition, Contractor shall not allow any subcontractor to commence work
on any subcontract until it has provided evidence satisfactory to the City that the subcontractor
has secured all insurance required under this section.
17.7 Minimum Requirements. Contractor shall, at its expense, procure and maintain
for the duration of the Contract insurance against claims for injuries to persons or damages to
property which may arise from or in connection with the performance of the Work hereunder by
the Contractor, its agents, representatives, employees or subcontractors. Contractor shall also
require all of its subcontractors to procure and maintain the same insurance for the duration of
the Contract. Such insurance shall meet at least the following minimum levels of coverage:
(a) Minimum Scope of Insurance. Coverage shall be at least as broad as the
latest version of the following: (1) General Liability: Insurance Services Office Commercial
General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance
Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); (3) Workers'
Compensation and Employer's Liability: Workers' Compensation insurance as required by the
State of California and Employer's Liability Insurance; and (4) Builders' /All Risk.- Builders' /All
Risk insurance covering for all risks of loss, including explosion, collapse, underground
excavation and removal of lateral support (and including earthquakes and floods if requested by
the City).
(b) Minimum Limits of Insurance. Contractor shall maintain limits no less
than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and
property damage. If Commercial General Liability Insurance or other form with a general
aggregate limit is used including, but not limited to, form CG 2503, either the general aggregate
limit shall apply separately to this Contract /location or the general aggregate limit shall be twice
the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury
and property damage; (3) Workers' Compensation and Employer's Liability: Workers'
compensation limits as required by the Labor Code of the State of California. Employer's
Liability limits of $1,000,000 per accident for bodily injury or disease; and (4) Builders' /All
Risk: Completed value of the project.
17.8 Insurance Endorsements. The insurance policies shall contain the following
provisions, or Contractor shall provide endorsements on forms supplied or approved by the City
to add the following provisions to the insurance policies:
(a) General Liability. (1) The City, its directors, officials, officers,
employees, agents and volunteers shall be covered as additional insureds with respect to the
Work or operations performed by or on behalf of the Contractor, including materials, parts or
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equipment furnished in connection with such work; and (2) the insurance coverage shall be
primary insurance as respects the City, its directors, officials, officers, employees, agents and
volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor's
scheduled underlying coverage. Any insurance or self - insurance maintained by the City, its
directors, officials, officers, employees, agents and volunteers shall be excess of the Contractor's
insurance and shall not be called upon to contribute with it.
(b) Automobile Liability. (1) The City, its directors, officials, officers,
employees, agents and volunteers shall be covered as additional insureds with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or
borrowed by the Contractor or for which the Contractor is responsible; and (2) the insurance
coverage shall be primary insurance as respects the City, its directors, officials, officers,
employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage
excess of the Contractor's scheduled underlying coverage. Any insurance or self - insurance
maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be
excess of the Contractor's insurance and shall not be called upon to contribute with it in any way.
(c) Workers' Compensation and Employer's Liability Coverage. The insurer
shall agree to waive all rights of subrogation against the City, its directors, officials, officers,
employees, agents and volunteers for losses paid under the terms of the insurance policy which
arise from work performed by the Contractor.
(d) All Coverages. Each insurance policy required by this Contract shall be
endorsed to state that: (1) coverage shall not be suspended, voided, reduced or canceled except
after thirty (30) days prior written notice by certified mail, return receipt requested, has been
given to the City; and (2) any failure to comply with reporting or other provisions of the policies,
including breaches of warranties, shall not affect coverage provided to the City, its directors,
officials, officers, employees, agents and volunteers.
17.9 Builders' /All Risk Policy Requirements. The builders' /all risk insurance shall
provide that the City be named as loss payee. In addition, the insurer shall waive all rights of
subrogation against the City.
17.10 Separation of Insureds; No Special Limitations. All insurance required by this
Section shall contain standard separation of insureds provisions. In addition, such insurance
shall not contain any special limitations on the scope of protection afforded to the City, its
directors, officials, officers, employees, agents and volunteers.
17.11 Deductibles and Self - Insurance Retentions. Any deductibles or self - insured
retentions must be declared to and approved by the City. Contractor shall guarantee that, at the
option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self -
insured retentions as respects the City, its directors, officials, officers, employees, agents and
volunteers; or (2) the Contractor shall procure a bond guaranteeing payment of losses and related
investigation costs, claims and administrative and defense expenses.
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17.12 Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to
the City.
17.13 Verification of Coveras?e. Contractor shall furnish City with original certificates
of insurance and endorsements effecting coverage required by this Contract on forms satisfactory
to the City. The certificates and endorsements for each insurance policy shall be signed by a
person authorized by that insurer to bind coverage on its behalf, and shall be on forms supplied
or approved by the City. All certificates and endorsements must be received and approved by
the City before work commences. The City reserves the right to require complete, certified
copies of all required insurance policies, at any time.
17.14 Subcontractors. All subcontractors shall meet the requirements of this Section
before commencing Work. In addition, Contractor shall include all subcontractors as insureds
under its policies or shall furnish separate certificates and endorsements for each subcontractor.
All coverages for subcontractors shall be subject to all of the requirements stated herein.
17.15 Reporting of Claims. Contractor shall report to the City, in addition to
Contractor's insurer, any and all insurance claims submitted by Contractor in connection with the
Work under this Contract.
18. Bond Requirements. [INTENTIONALLY OMITTED]
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RVPUB \SDEITSCH \740726.3 I I
Gity. if the Gentfaetef fails to ffifnish any feEittir-ed bond, the City may tefffliflate the Gentfae
19. Safetv. Contractor shall execute and maintain its work so as to avoid injury or damage to
any person or property. Contractor shall comply with the requirements of the specifications
relating to safety measures applicable in particular operations or kinds of work. In carrying out
its Work, the Contractor shall at all times be in compliance with all applicable local, state and
federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of
employees appropriate to the nature of the Work and the conditions under which the Work is to
be performed. Safety precautions as applicable shall include, but shall not be limited to,
adequate life protection and life saving equipment; adequate illumination for underground and
night operations; instructions in accident prevention for all employees, such as machinery
guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures,
trenching and shoring, fall protection and other safety devices, equipment and wearing apparel as
are necessary or lawfully required to prevent accidents or injuries; and adequate facilities for the
proper inspection and maintenance of all safety measures. Furthermore, Contractor shall
prominently display the names and telephone numbers of at least two medical doctors practicing
in the vicinity of the Project, as well as the telephone number of the local ambulance service,
adjacent to all telephones at the Project site.
20. Warranty. Contractor warrants all Work under the Contract (which for purposes of this
Section shall be deemed to include unauthorized work which has not been removed and any
non - conforming materials incorporated into the Work) to be of good quality and free from any
defective or faulty material and workmanship. Contractor agrees that for a period of one year (or
the period of time specified elsewhere in the Contract or in any guarantee or warranty provided
by any manufacturer or supplier of equipment or materials incorporated into the Work,
whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after
being notified in writing by the City of any defect in the Work or non - conformance of the Work
to the Contract, commence and prosecute with due diligence all Work necessary to fulfill the
terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by
the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense,
repair and replace any portions of the Work (or work of other contractors) damaged by its
defective Work or which becomes damaged in the course of repairing or replacing defective
Work. For any Work so corrected, Contractor's obligation hereunder to correct defective Work
shall be reinstated for an additional one year period, commencing with the date of acceptance of
such corrected Work. Contractor shall perform such tests as the City may require to verify that
any corrective actions, including, without limitation, redesign, repairs, and replacements comply
with the requirements of the Contract. All costs associated with such corrective actions and
testing, including the removal, replacement, and reinstitution of equipment and materials
necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and
guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the
RVPUB \SDEITSCH \740726.3 12
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19. Safetv. Contractor shall execute and maintain its work so as to avoid injury or damage to
any person or property. Contractor shall comply with the requirements of the specifications
relating to safety measures applicable in particular operations or kinds of work. In carrying out
its Work, the Contractor shall at all times be in compliance with all applicable local, state and
federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of
employees appropriate to the nature of the Work and the conditions under which the Work is to
be performed. Safety precautions as applicable shall include, but shall not be limited to,
adequate life protection and life saving equipment; adequate illumination for underground and
night operations; instructions in accident prevention for all employees, such as machinery
guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures,
trenching and shoring, fall protection and other safety devices, equipment and wearing apparel as
are necessary or lawfully required to prevent accidents or injuries; and adequate facilities for the
proper inspection and maintenance of all safety measures. Furthermore, Contractor shall
prominently display the names and telephone numbers of at least two medical doctors practicing
in the vicinity of the Project, as well as the telephone number of the local ambulance service,
adjacent to all telephones at the Project site.
20. Warranty. Contractor warrants all Work under the Contract (which for purposes of this
Section shall be deemed to include unauthorized work which has not been removed and any
non - conforming materials incorporated into the Work) to be of good quality and free from any
defective or faulty material and workmanship. Contractor agrees that for a period of one year (or
the period of time specified elsewhere in the Contract or in any guarantee or warranty provided
by any manufacturer or supplier of equipment or materials incorporated into the Work,
whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after
being notified in writing by the City of any defect in the Work or non - conformance of the Work
to the Contract, commence and prosecute with due diligence all Work necessary to fulfill the
terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by
the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense,
repair and replace any portions of the Work (or work of other contractors) damaged by its
defective Work or which becomes damaged in the course of repairing or replacing defective
Work. For any Work so corrected, Contractor's obligation hereunder to correct defective Work
shall be reinstated for an additional one year period, commencing with the date of acceptance of
such corrected Work. Contractor shall perform such tests as the City may require to verify that
any corrective actions, including, without limitation, redesign, repairs, and replacements comply
with the requirements of the Contract. All costs associated with such corrective actions and
testing, including the removal, replacement, and reinstitution of equipment and materials
necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and
guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the
RVPUB \SDEITSCH \740726.3 12
Work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the
City, regardless of whether or not such warranties and guarantees have been transferred or
assigned to the City by separate agreement and Contractor agrees to enforce such warranties and
guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its
obligations under this Section, or under any other warranty or guaranty under this Contract, to
the reasonable satisfaction of the City, the City shall have the right to correct and replace any
defective or non - conforming Work and any work damaged by such work or the replacement or
correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse
the City for any expenses incurred hereunder upon demand.
21. Laws and Regulations. Contractor shall keep itself fully informed of and in compliance
with all local, state and federal laws, rules and regulations in any manner affecting the
performance of the Contract or the Work, including all Cal /OSHA requirements, and shall give
all notices required by law. Contractor shall be liable for all violations of such laws and
regulations in connection with Work. If the Contractor observes that the drawings or
specifications are at variance with any law, rule or regulation, it shall promptly notify the City in
writing. Any necessary changes shall be made by written change order. If the Contractor
performs any work knowing it to be contrary to such laws, rules and regulations and without
giving written notice to the City, the Contractor shall be solely responsible for all costs arising
therefrom. City is a public entity of the State of California subject to certain provisions of the
Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It
is stipulated and agreed that all provisions of the law applicable to the public contracts of a
municipality are a part of this Contract to the same extent as though set forth herein and will be
complied with. Contractor shall defend, indemnify and hold City, its officials, directors, officers,
employees and agents free and harmless, pursuant to the indemnification provisions of this
Contract, from any claim or liability arising out of any failure or alleged failure to comply with
such laws, rules or regulations.
22.1 Immigration Reform and Control Act. Contractor acknowledges that Contractor,
and all subcontractors hired by Contractor to perform services under this Agreement, are aware
of and understand the Immigration Reform and Control Act ( "IRCA "). Contractor is and shall
remain in compliance with the IRCA and shall ensure that any subcontractors hired by
Contractor to perform services under this Agreement are in compliance with the IRCA. In
addition, Contractor agrees to indemnify, defend and hold harmless the City, its agents, officers
and employees, from any liability, damages or causes of action arising out of or relating to any
claims that Contractor's employees, or the employees of any subcontractor hired by Contractor,
are not authorized to work in the United States for Contractor or its subcontractor and/or any
other claims based upon alleged IRCA violations committed by Contractor or Contractor's
subcontractor(s).
22. Permits and Licenses. Contractor shall be responsible for securing City permits and
licenses necessary to perform the Work described herein, including, but not limited to, a City
Business License. While Contractor will not be charged a fee for any City permits, Contractor
shall pay the City's applicable business license fee. Any ineligible contractor or subcontractor
pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on this Project.
RVPUB \SDEITSCH \740726.3 13
23. Trenching Work. If the Total Contract Price exceeds $25,000 and if the Work governed
by this Contract entails excavation of any trench or trenches five (5) feet or more in depth,
Contractor shall comply with all applicable provisions of the California Labor Code, including
Section 6705. To this end, Contractor shall submit for City's review and approval a detailed plan
showing the design of shoring, bracing, sloping, or other provisions to be made for worker
protection from the hazard of caving ground during the excavation of such trench or trenches. If
such plan varies from the shoring system standards, the plan shall be prepared by a registered
civil or structural engineer.
24. Hazardous Materials and Differing Conditions. As required by California Public Contract
Code Section 7104, if this Contract involves digging trenches or other excavations that extend
deeper than four (4) feet below the surface, Contractor shall promptly, and prior to disturbance of
any conditions, notify City of. (1) any material discovered in excavation that Contractor believes
to be a hazardous waste that is required to be removed to a Class I, Class II or Class III disposal
site; (2) subsurface or latent physical conditions at the site differing from those indicated by City;
and (3) unknown physical conditions of an unusual nature at the site, significantly different from
those ordinarily encountered in such contract work. Upon notification, City shall promptly
investigate the conditions to determine whether a change order is appropriate. In the event of a
dispute, Contractor shall not be excused from any scheduled completion date and shall proceed
with all Work to be performed under the Contract, but shall retain all rights provided by the
Contract or by law for making protests and resolving the dispute.
25. Underground Utility Facilities. To the extent required by Section 4215 of the California
Government Code, City shall compensate Contractor for the costs of. (1) locating and repairing
damage to underground utility facilities not caused by the failure of Contractor to exercise
reasonable care; (2) removing or relocating underground utility facilities not indicated in the
construction drawings; and (3) equipment necessarily idled during such work. Contractor shall
not be assessed liquidated damages for delay caused by failure of City to provide for removal or
relocation of such utility facilities.
26. Labor Code Provisions.
26.1 Prevailing Wages. Funding for the Work is with all local funds and, as provided
under the Owner's Charter, will NOT require compliance with the prevailing wage requirements
of the State of California.
26.2 Apprenticeable Crafts. If the Total Contract Price exceeds $35,000 and if
Contractor employs workmen in an apprenticeable craft or trade, Contractor shall comply with
the provisions of Section 1777.5 of the California Labor Code with respect to the employment of
properly registered apprentices upon public works. The primary responsibility for compliance
with said section for all apprenticeable occupations shall be with Contractor.
26.3 Hours of Work. Contractor is advised that eight (8) hours labor constitutes a legal
day's work. Pursuant to Section 1813 of the California Labor Code, Contractor shall forfeit a
penalty of $25.00 per worker for each day that each worker is permitted to work more than eight
(8) hours in any one calendar day and forty (40) hours in any one calendar week, except when
RVPUB \SDEITSCH \740726.3 14
payment for overtime is made at not less than one and one -half (1 -1/2) times the basic rate for
that worker.
26.4 Payroll Records. Contractor and each subcontractor shall keep an accurate
payroll record, showing the name, address, social security number, work classification, straight
time and overtime hours worked each day and week, and the actual per diem wages paid to each
journeyman, apprentice, worker, or other employee employed by him or her in connection with
the public work. The payroll records shall be certified and shall be available for inspection at all
reasonable hours at the principal office of Contractor in the manner provided in Labor Code
section 1776. In the event of noncompliance with the requirements of this section, Contractor
shall have 10 days in which to comply subsequent to receipt of written notice specifying in what
respects such Contractor must comply with this section. Should noncompliance still be evident
after such 10 -day period, the Contractor shall, as a penalty to City, forfeit not more than $50.00
for each calendar day or portion thereof, for each worker, until strict compliance is effectuated.
The amount of the forfeiture is to be determined by the Labor Commissioner. Upon the request
of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement,
such penalties shall be withheld from progress payments then due. The responsibility for
compliance with this section is on the Contractor.
26.5 Contractor's Labor Certification. By its signature hereunder, Contractor certifies
that he is aware of the provisions of Section 3700 of the California Labor Code which require
every employer to be insured against liability for Worker's Compensation or to undertake self -
insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Work.
27. Labor and Material Releases. Contractor shall furnish City with labor and material
releases from all subcontractors performing work on, or furnishing materials for, the work
governed by this Contract prior to final payment by City.
28. Equal Opportunity Employ. Contractor represents that it is an equal opportunity
employer and that it shall not discriminate against any employee or applicant for employment
because of race, religion, color, national origin, ancestry, sex, age or other interests protected by
the State or Federal Constitutions. Such non - discrimination shall include, but not be limited to,
all activities related to initial employment, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff or termination.
29. Anti -Trust Claims. This provision shall be operative if this Contract is applicable to
California Public Contract Code Section 7103.5. In entering into this Contract to supply goods,
services or materials, the Contractor hereby offers and agrees to assign to the City all rights, title,
and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15
U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of
Part 2 of Division 7 of the Business and Professions Code) arising from purchases of goods,
services, or materials pursuant to the Contract. This assignment shall be made and become
effective at the time the City tender final payment to the Contractor, without further
acknowledgment by the Parties.
RVPUB \SDEITSCH \740726.3 15
30. Claims of $375,000 or Less. Notwithstanding any other provision herein, claims of
$375,000 or less shall be resolved pursuant to the alternative dispute resolution procedures set
forth in California Public Contract Code §§ 20104, et seg.
31. Claims. Pursuant to Public Contract Code Section 9201, the City shall provide the
Contractor with timely notification of the receipt of any third -party claim, relating to the
Contract. The City is entitled to recover its reasonable costs incurred in providing such
notification.
32. Prohibited Interests.
32.1 Solicitation. Contractor maintains and warrants that it has not employed nor
retained any company or person, other than a bona fide employee working solely for Contractor,
to solicit or secure this Contract. Further, Contractor warrants that it has not paid nor has it
agreed to pay any company or person, other than a bona fide employee working solely for
Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Contract. For breach or violation
of this warranty, City shall have the right to terminate this Contract without liability.
32.2 Conflict of Interest. For the term of this Contract, no member, officer or
employee of City, during the term of his or her service with City, shall have any direct interest in
this Contract, or obtain any present or anticipated material benefit arising therefrom. In addition,
Contractor agrees to file, or to cause its employees or subcontractors to file, a Statement of
Economic Interest with the City's Filing Officer as required under state law in the performance
of the Work.
33. Certification of License. Contractor certifies that as of the date of execution of this
Contract, Contractor has a current contractor's license of the classification indicated below under
Contractor's signature.
34. General Provisions.
'34.1 Notices. All notices hereunder and communications regarding interpretation of
the terms of the Contract or changes thereto shall be provided by the mailing thereof by
registered or certified mail, return receipt requested, postage prepaid and addressed as follows:
Citv
City of Arcadia
240 West Huntington Drive
Arcadia, CA 91066
Attn: Tiffany Lee
Contractor
E &R Construction, Inc.
945 Wellington Rd.
San Dimas, CA 91773 -3731
Attn: William Carney, JR
Any notice so given shall be considered received by the other Party three (3) days after deposit in
the U.S. Mail as stated above and addressed to the Party at the above address. Actual notice
shall be deemed adequate notice on the date actual notice occurred, regardless of the method of
service.
34.2 Time of Essence. Time is of the essence in the performance of this Contract.
RVPUB \SDEITSCH \740726.3 16
34.3 Assignment Forbidden. Contractor shall not, either voluntarily or by action of
law, assign or transfer this Contract or any obligation, right, title or interest assumed by
Contractor herein without the prior written consent of City. If Contractor attempts an assignment
or transfer of this Contract or any obligation, right, title or interest herein, City may, at its option,
terminate and revoke the Contract and shall thereupon be relieved from any and all obligations to
Contractor or its assignee or transferee.
34.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another,
and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
34.5 City's Right to Employ Other Contractors. City reserves right to employ other
contractors in connection with this Project.
34.6 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Contractor include all personnel, employees, agents, and
subcontractors of Contractor, except as otherwise specified in this Agreement. All references to
City include its elected officials, officers, employees, agents, and volunteers except as otherwise
specified in this Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
content or intent of this Agreement.
34.7 Waiver. No waiver of any default shall constitute a waiver of any other default or
breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or
service voluntarily given or performed by a Party shall give the other Party any contractual rights
by custom, estoppel or otherwise.
34.8 No Third Party Beneficiaries. There are no intended third party beneficiaries of
any right or obligation assumed by the Parties.
34.9 Invalidity; Severability. If any portion of this Agreement is declared invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions
shall continue in full force and effect.
34.10 Governing Law. This Contract shall be governed by California law. Venue shall
be in Los Angeles County.
34.11 Counterparts. This Contract may be executed in counterparts, each of which shall
constitute an original.
34.12 Successors. The Parties do for themselves, their heirs, executors, administrators,
successors, and assigns agree to the full performance of all of the provisions contained in this
Contract.
RVPUB \SDE ITS CH \740726.3 17
34.13 Attorneys' Fees. If either Party commences an action against the other Party,
either legal, administrative or otherwise, arising out of or in connection with this Contract, the
prevailing Party in such action shall be entitled to have and recover from the losing Party
reasonable attorneys' fees and all other costs of such action.
34.14 Authority to Enter Contract. Each Party warrants that the individuals who have
signed this Contract have the legal power, right and authority to make this Contract and bind
each respective Party.
34.15 Entire Contract; Modification. This Contract contains the entire agreement of the
Parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Contract may only be modified by a writing signed by both
Parties.
IN WITNESS WHEREOF, each of the Parties has caused this Contract to be executed on
the day and year first above written.
CITY OF ARCADIA
By: �3anCAP Pte_
Donald Penmann
City Manager
Attest: 1� 1 9� %
City Cl r p
Dated: �z..(� b� 0� , 2009
APPROVED AS TO FORM
StepheA P. Deitsch
City Attorney
Dated: " �1 �' , 2009
RVPU13\SDEITSCH \740726.3 18
am
Corporate Secretary
Dated:;�,/ 41/1 rt 009
CONCUR
Pat Malloy, Assist4nt Cityi anger/
Public Works Services Director
Dated: /% G ,2009
EXHIBIT "A"
PLANS AND SPECIFICATIONS
The following plans and specifications are incorporated into this Contract herein by this
reference:
"PLEASE SEE ATTACHED PLANS AND SPECIFICATIONS"
RVPUB \SDEITSCII \740726.3 19