HomeMy WebLinkAboutItem 10b - Budget Appropriation for Debris Basins Debris Removal Project
STAFF REPORT
PUBLIC WORKS SERVICES DEPARTMENT
DATE: November 18, 2025
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: Dave Thompson, Streets Superintendent
SUBJECT: RESOLUTION NO. 7660 AMENDING THE FISCAL YEAR 2025-26 CAPITAL
IMPROVEMENT PROGRAM BUDGET, AUTHORIZING A SUPPLEMENTAL
BUDGET APPROPRIATION FOR THE DEBRIS BASINS DEBRIS REMOVAL
PROJECT IN THE AMOUNT OF $302,828.63, OFFSET BY A REDUCTION IN
THE CAPITAL OUTLAY FUND; AND APPROVE A CONTRACT WITH
HORIZONS CONSTRUCTION CO. INT’L INC. FOR THE DEBRIS BASINS
DEBRIS REMOVAL PROJECT IN THE AMOUNT OF $302,828.63
CEQA: Exempt
Recommendation: Approve
SUMMARY
As a result of the January 2025 Windstorm Event and subsequent Eaton Fire, the
northern hillsides of the City experienced significant wildfire damage. The wildfire
scarred and destabilized slopes, which led to the accumulation of mud, burned
vegetation, and other debris at the debris basins located at 2273 Highland Vista Drive
and 2225 Canyon Road. The accumulation of the debris has compromised the
capacity of the debris basins to effectively capture and control debris-laden runoff.
To restore the debris basins to full operational functionality and reduce the risk of
future debris-related damage, removal of the accumulated debris is necessary.
Through Sourcewell, a national cooperative purchasing program, the City can
streamline the procurement process for debris removal services and receive the best
price possible.
It is recommended that the City Council adopt Resolution No. 7660 amending the
Fiscal Year 2025-26 Capital Improvement Program Budget, authorizing a
supplemental budget appropriation for the Debris Basins Debris Removal Project in
Supplemental Appropriation for the Debris
Basins Debris Removal Project
November 18, 2025
Page 2 of 4
the amount of $302,828.63, offset by a reduction in the Capital Outlay Fund; and
approve a contract with Horizons Construction Co. Int’l Inc. for the Debris Basins
Debris Removal Project in the amount of $302,828.63.
BACKGROUND
As a result of the January 2025 Windstorm Event and subsequent Eaton Fire, the
northern hillsides of the City experienced significant wildfire damage. The wildfire
scarred and destabilized slopes, which led to the uncontrolled movement of mud,
burned vegetation, and other debris that overflowed into two debris basins located
at 2273 Highland Vista Drive and 2225 Canyon Road. The debris basins, which are
engineered to trap and control debris-laden runoff, are at capacity due to mud,
burned vegetation, and other materials carried to the sites by the rains that followed
the Eaton Fire. As a result, the debris basins can no longer contain additional flows,
increasing the risk of overflow and downstream damage during future mudflow
events. Clearing the basins is necessary to restore their capacity and structural
integrity, ensuring they continue to function as intended and protect the surrounding
areas.
DISCUSSION
The Debris Basins Debris Removal Project will include the excavation and sorting of
approximately 2,530 cubic yards of soil at the debris basin located at 2225 Canyon
Road, and approximately 250 cubic yards of soil at the debris basin located at 2273
Highland Vista Drive. The contractor will haul and transport the sorted soil to an
approved clean dirt facility and discard the remaining debris at a disposal facility, to
ensure compliance with environmental regulations. In addition, after the debris
removal has taken place, the contractor will conduct rough grading at both sites to
ensure that proper draining and stability is maintained at the debris basins. Once
the project is complete, the debris basins will effectively capture and manage runoff
and debris, protecting downstream properties during future storm events.
Utilizing Sourcewell, a national cooperative purchasing program, enables the City to
streamline the procurement process for debris removal services at a lower cost than
the traditional competitive bidding process. The California Government Code
authorizes public agencies to participate in cooperative purchasing agreements,
Supplemental Appropriation for the Debris
Basins Debris Removal Project
November 18, 2025
Page 3 of 4
such as those established by Sourcewell, while remaining within the City’s adopted
rules and procedures for purchasing. Sourcewell awarded a contract to Horizons
Construction Co. Int’l Inc. for construction projects, which include debris removal
projects. A copy of the agreement between Sourcewell and Horizons Construction
Co. Int’l Inc. has been reviewed by the Public Works Services Department, and has
been determined to meet the City’s procurement requirements.
ENVIRONMENTAL ANALYSIS
The Project is considered a Class 1 Exemption as defined in Section 15301(a) “Existing
Facilities” projects of the California Environmental Quality Act (“CEQA”), which
exempts projects consisting of the minor alteration of existing public structures.
FISCAL IMPACT
The total cost of the Debris Basins Debris Removal Project is $302,828.63. This project
was not anticipated or included in the Fiscal Year 2025-26 Capital Improvement
Program Budget. Therefore, a budget appropriation from the Capital Outlay Fund in
the amount of $302,828.63, is requested for the Debris Basins Debris Removal
Project.
The Public Works Services Department collaborated with the Federal Emergency
Management Agency (“FEMA”) to submit a Public Assistance request for
reimbursement of the project costs. The project is currently under FEMA’s review to
determine reimbursement eligibility. Although reimbursement is uncertain, the City
must fund the project while FEMA makes a final determination on cost recovery. If
approved, FEMA will reimburse the City 75% of the total cost for this project, reducing
the City’s share of the Debris Basins Debris Removal Project to $75,707.16.
RECOMMENDATION
It is recommended that the City Council determine that this project is exempt under
the California Environmental Quality Act (“CEQA”); adopt Resolution No. 7660
amending the Fiscal Year 2025-26 Capital Improvement Program Budget, authorizing
a supplemental budget appropriation for the Debris Basins Debris Removal Project
in the amount of $302,828.63, offset by a reduction in the Capital Outlay Fund; and
Supplemental Appropriation for the Debris
Basins Debris Removal Project
November 18, 2025
Page 4 of 4
approve a contract with Horizons Construction Co. Int’l Inc. for the Debris Basins
Debris Removal Project in the amount of $302,828.63.
Attachments: Proposed Construction Contract
Sourcewell Contract
Resolution No. 7660
Updated: Feb. 2020 1
CITY OF ARCADIA
CONSTRUCTION CONTRACT
DEBRIS BASINS DEBRIS REMOVAL PROJECT
1. PARTIES AND DATE.
This Contract is made and entered into this _____ day of _______________, 20____ by and
between the City of Arcadia, a public agency of the State of California (“City”) and Horizons
Construction Company Int’.l, Inc., a California Corporation, with its principal place of business at
432 W. Meats Avenue, Orange, CA 92865 (“Contractor”). City and Contractor are sometimes
individually referred to as “Party” and collectively as “Parties” in this Contract.
2. RECITALS.
2.1 City. City is a public agency organized under the laws of the State of California, with
power to contract for services necessary to achieve its purpose.
2.2 Contractor. 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 duly licensed and experienced in providing debris
removal and soil clean -up related construction 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 it is familiar with the plans of City. The following license classifications are
required for this Project: C -12.
2.3 Project. City desires to engage Contractor to render such services for the D ebris
Basin Debris Removal Project (“Project”) as set forth in this Contract.
2.4 Project Documents & Certifications. Contractor has obtained, and delivers
concurrently herewith, a performance bond, a payment bond, and all insurance documentation, as
required by the Contract.
3. TERMS
3.1 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:
• Services/Schedule (Exhibit “A”)
• Plans and Specifications (Exhibit “B”)
• Special Conditions (Exhibit “C”)
• Contractor’s Certificate Regarding Workers’ Compensation (Exhibit “D”)
• Public Works Contractor Registration Certification (Exhibit “E”)
• Payment and Performance Bonds (Exhibit “F”)
• Federal Requirements (Exhibit “G”)
• Addenda
• Change Orders executed by the City
Updated: Feb. 2020 2
• Current Edition of the Standard Specifications for Public Works Construction
(The Greenbook), Excluding Sections 1-9
• Notice Inviting Bids, if any
• Instructions to Bidders, if any
• Contractor’s Bid
3.2 Contractor’s Basic Obligation; Scope of Work. Contractor promises and agrees, at
its own cost and expense, to furnish to the City 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 “B” attached hereto and incorporated
herein by this reference. Special Conditions, if any, relating to the Work are described in Exhibit “C”
attached hereto and incorporated herein by this reference.
3.2.1 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 writing by a valid change order executed by the City. Should Contractor
request a change order due to unforeseen circumstances affecting the performance of the Work,
such request shall be made within five (5) business days of the date such circumstances are
discovered or shall waive its right to request a change order due to such circumstances. If the Parties
cannot agree on any change in price required by such change in the Work, the City may direct the
Contractor to proceed with the performance of the change on a time and materials basis.
3.2.2 Substitutions/“Or Equal”. 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.”
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. 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 Contractor.
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
Updated: Feb. 2020 3
substantiate requests for substitutions of an “or equal” material, process or article data shall
include a signed affidavit from 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.
Contractor shall bear all of the City’s costs associated with the review of substitution
requests. 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.
3.3 Period of Performance and Liquidated Damages. Contractor shall perform and
complete all Work under this Contract within thirty (30) working 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 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
One Thousand, Five Hundred Fifteen Dollars and No Cents ($1,515.00) per day for each and every
calendar day of delay beyond the Contract Time or beyond any completion schedule, construction
schedule or Project milestones established pursuant to the Contract.
3.4 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 any required 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 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
Contractor and shall not be re-employed on the Work.
3.5 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
Updated: Feb. 2020 4
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.
3.6 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
Contractor of the services and obligations required by this Contract, the below-referenced
compensation in accordance with compensation provisions set forth in the Contract.
3.7 Compensation and Payment.
3.7.1 Amount of Compensation. As consideration for performance of the Work
required herein, City agrees to pay Contractor the Total Contract Price of THREE HUNDRED TWO
THOUSAND, EIGHT HUNDRED TWENTY-EIGHT DOLLARS AND SIXTY-THREE CENTS
($302,828.63) (“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.
3.7.2 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.
3.7.3 Prompt Payment. 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.
However, no progress payments will be made for Work not completed in accordance with this
Contract. Contractor shall comply with all applicable laws, rules and regulations relating to the
proper payment of its employees, subcontractors, suppliers or others.
3.7.4 Contract Retentions. From each approved progress estimate, five percent
(5%) will be deducted and retained by the City, and the remainder will be paid to Contractor. All
Contract retention shall be released and paid to Contractor and subcontractors pursuant to
California Public Contract Code Section 7107.
3.7.5 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
Updated: Feb. 2020 5
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 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 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 of these sums from a progress
payment shall not constitute a waiver of the City’s right to such sums.
3.7.6 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
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 Contractor as they come due. Upon satisfactory completion of the Contract,
the securities shall be returned to 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. 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.
3.7.7 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.
3.7.8 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.
3.7.9 Prevailing Wages. Contractor is aware of the requirements of California
Labor Code Section 1720 et seq., and 1770 et seq., as well as California Code of Regulations, Title
8, Section 16000 et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage
rates and the performance of other requirements on “public works” and “maintenance” projects.
Since the Services are being performed as part of an applicable “public works” or “maintenance”
project, as defined by the Prevailing Wage Laws, and if the total compensation is $25,000 or more,
Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with
a copy of the prevailing rates of per diem wages in effect at the commencement of this Contract.
Updated: Feb. 2020 6
Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification
or type of worker needed to execute the Services available to interested parties upon request, and
shall post copies at Contractor’s principal place of business and at the project site. Contractor shall
defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless
from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing
Wage Laws. Contractor and any subcontractor shall forfeit a penalty of up to $200 per calendar day
or portion thereof for each worker paid less than the prevailing wage rates.
3.7.10 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. The Contractor or any
subcontractor that is determined by the Labor Commissioner to have knowingly violated Section
1777.5 shall forfeit as a civil penalty an amount not exceeding $100 for each full calendar day of
noncompliance, or such greater amount as provided by law.
3.7.11 Hours of Work. If the Total Contract Price exceeds $25,000, 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 payment for overtime is made at not less than one and one-half
(1-1/2) times the basic rate for that worker.
3.7.12 Payroll Records. If the Total Contract Price exceeds $25,000, 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, Contractor shall, as a penalty to City, forfeit
not more than $100.00 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. A contractor who is found to have violated the provisions of law regarding wages on
Public Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a
period of one to three years as 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 Contractor. The requirement to submit certified payroll records directly to the
Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public
works project that is exempt pursuant to the small project exemption specified in Labor Code
Section 1771.4.
3.7.13 Contractor and Subcontractor Registration. If the Total Contract Price
exceeds $25,000, then pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and
subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform
public work must be registered with the Department of Industrial Relations. No bid will be accepted
Updated: Feb. 2020 7
nor any contract entered into without proof of the contractor’s and subcontractors’ current
registration with the Department of Industrial Relations to perform public work. Contractor is
directed to review, fill out and execute the Public Works Contractor Registration Certification
attached hereto as Exhibit “E” prior to contract execution. Notwithstanding the foregoing, the
contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not
apply to work performed on a public works project that is exempt pursuant to the small project
exemption specified in Labor Code Sections 1725.5 and 1771.1.
3.7.14 Labor Compliance; Stop Orders. If the Total Contract Price exceeds $25,000,
Contractor acknowledges that it is aware that this Project is subject to compliance monitoring and
enforcement by the Department of Industrial Relations. It shall be the Contractor’s sole
responsibility to evaluate and pay the cost of complying with all labor compliance requirements
under this Contract and applicable law. Any stop orders issued by the Department of Industrial
Relations against Contractor or any subcontractor that affect Contractor’s performance of Work,
including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting
from such stop orders shall be considered Contractor caused delay subject to any applicable
liquidated damages and shall not be compensable by the City. Contractor shall defend, indemnify
and hold the City, its officials, officers, employees and agents free and harmless from any claim or
liability arising out of stop orders issued by the Department of Industrial Relations against Contractor
or any subcontractor.
3.8 Performance of Work; Jobsite Obligations.
3.8.1 Water Quality Management and Compliance.
3.8.1.1 Water Quality Management and Compliance. Contractor
shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance
with all local, state and federal laws, rules and regulations that may impact, or be implicated by the
performance of the Work including, without limitation, all applicable provisions of the Federal Water
Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act
(Cal Water Code §§ 13000-14950); local ordinances regulating discharges of storm water; and any
and all regulations, policies, or permits issued pursuant to any such authority regulating the
discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any
ground or surface water in the State.
3.8.1.2 Compliance with the Statewide Construction General Permit.
Contractor shall comply with all conditions of the most recent iteration of the National Pollutant
Discharge Elimination System General Permit for Storm Water Discharges Associated with
Construction Activity, issued by the California State Water Resources Control Board (“Permit”). It
shall be Contractor’s sole responsibility to file a Notice of Intent and procure coverage under the
Permit for all construction activity which results in the disturbance of more than one acre of total
land area or which is part of a larger common area of development or sale. Prior to initiating work,
Contractor shall be solely responsible for preparing and implementing a Storm Water Pollution
Prevention Plan (SWPPP) as required by the Permit. Contractor shall be responsible for procuring,
implementing and complying with the provisions of the Permit and the SWPPP, including the
standard provisions, and monitoring and reporting requirements as required by the Permit. The
Permit requires the SWPPP to be a “living document” that changes as necessary to meet the
conditions and requirements of the job site as it progresses through difference phases of
construction and is subject to different weather conditions. It shall be Contractor’s sole
responsibility to update the SWPPP as necessary to address conditions at the project site.
Updated: Feb. 2020 8
3.8.1.3 Other Water Quality Rules Regulations and Policies.
Contractor shall comply with the lawful requirements of any applicable municipality, drainage City,
or local agency regarding discharges of storm water to separate storm drain systems or other
watercourses under their jurisdiction, including applicable requirements in municipal storm water
management programs.
3.8.1.4 Cost of Compliance. Storm, surface, nuisance, or other
waters may be encountered at various times during construction of The Work. Therefore, the
Contractor, by submitting a Bid, hereby acknowledges that it has investigated the risk arising from
such waters, has prepared its Bid accordingly, and assumes any and all risks and liabilities arising
therefrom.
3.8.1.5 Liability for Non-Compliance. Failure to comply with the
Permit is a violation of federal and state law. Pursuant to the indemnification provisions of this
Contract, Contractor hereby agrees to defend, indemnify and hold harmless the City and its officials,
officers, employees, volunteers and agents for any alleged violations. In addition, City may seek
damages from Contractor for any delay in completing the Work in accordance with the Contract, if
such delay is caused by or related to Contractor’s failure to comply with the Permit.
3.8.1.6 Reservation of Right to Defend. City reserves the right to
defend any enforcement action brought against the City for Contractor’s failure to comply with the
Permit or any other relevant water quality law, regulation, or policy. Pursuant to the indemnification
provisions of this Contract, Contractor hereby agrees to be bound by, and to reimburse the City for
the costs (including the City’s attorney’s fees) associated with, any settlement reached between the
City and the relevant enforcement entity.
3.8.1.7 Training. In addition to the standard of performance
requirements set forth in paragraph 3.4, Contractor warrants that all employees and subcontractors
shall have sufficient skill and experience to perform the Work assigned to them without impacting
water quality in violation of the laws, regulations and policies described in paragraph 3.8.1.
Contractor further warrants that it, its employees and subcontractors will receive adequate training,
as determined by City, regarding the requirements of the laws, regulations and policies described in
paragraph 3.8.1 as they may relate to the Work provided under this Agreement. Upon request, City
will provide the Contractor with a list of training programs that meet the requirements of this
paragraph.
3.8.2 Safety. 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, 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 lifesaving 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
Updated: Feb. 2020 9
Project, as well as the telephone number of the local ambulance service, adjacent to all telephones
at the Project site.
3.8.3 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 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 Contractor performs any work knowing it to be contrary to
such laws, rules and regulations and without giving written notice to the City, 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,
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.
3.8.4 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,
any required business license. While Contractor will not be charged a fee for any City permits,
Contractor shall pay the City’s business license fee, if any. Any ineligible contractor or
subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on this
Project.
3.8.5 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.
3.8.6 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.
Updated: Feb. 2020 10
3.8.7 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.
3.8.8 Air Quality. Contractor must fully comply with all applicable laws, rules and
regulations in furnishing or using equipment and/or providing services, including, but not limited to,
emissions limits and permitting requirements imposed by the California Air Resources Board
(CARB). Although CARB limits and requirements are more broad, Contractor shall specifically be
aware of their application to "portable equipment", which definition is considered by CARB to
include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against
any fines or penalties imposed by CARB, or any other governmental or regulatory agency for
violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others
for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.
3.8.9 State Recycling Mandates. Contractor shall comply with State Recycling
Mandates. Any recyclable materials/debris collected by the contractor that can be feasibly diverted
via reuse or recycling must be hauled by the appropriate handler for reuse or recycling.
3.9 Completion of Work. When 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.
3.10 Claims; Government Code Claim Compliance.
3.10.1 Intent. Effective January 1, 1991, Section 20104 et seq., of the California
Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial
supervised mediation, and judicial arbitration to resolve disputes on construction claims of
$375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes a
process for negotiation and mediation to resolve disputes on construction claims. The intent of this
Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract
Code. This Section shall be construed to be consistent with said statutes.
3.10.2 Claims. For purposes of this Section, “Claim” means a separate demand by
the Contractor, after a change order duly requested in accordance with the terms of this Contract
has been denied by the City, for (A) a time extension, (B) payment of money or damages arising from
Work done by or on behalf of the Contractor pursuant to the Contract, or (C) an amount the payment
of which is disputed by the City. Claims governed by this Section may not be filed unless and until
the Contractor completes all procedures for giving notice of delay or change and for the requesting
of a time extension or change order, including but not necessarily limited to the change order
Updated: Feb. 2020 11
procedures contained herein, and Contractor’s request for a change has been denied in whole or in
part. Claims governed by this Section must be filed no later than fourteen (14) days after a request
for change has been denied in whole or in part or after any other event giving rise to the Claim. The
Claim shall be submitted in writing to the City and shall include on its first page the following in 16
point capital font: “THIS IS A CLAIM.” Furthermore, the claim shall include the documents necessary
to substantiate the claim. Nothing in this Section is intended to extend the time limit or supersede
notice requirements otherwise provided by contract for the filing of claims, including all
requirements pertaining to compensation or payment for extra Work, disputed Work, and/or
changed conditions. Failure to follow such contractual requirements shall bar any claims or
subsequent lawsuits for compensation or payment thereon.
3.10.3 Supporting Documentation. The Contractor shall submit all claims in the
following format:
3.10.3.1 Summary of claim merit and price, reference Contract
Document provisions pursuant to which the claim is made
3.10.3.2 List of documents relating to claim:
(A) Specifications
(B) Drawings
(C) Clarifications (Requests for Information)
(D) Schedules
(E) Other
3.10.3.3 Chronology of events and correspondence
3.10.3.4 Analysis of claim merit
3.10.3.5 Analysis of claim cost
3.10.3.6 Time impact analysis in CPM format
3.10.3.7 If Contractor’s claim is based in whole or in part on an
allegation of errors or omissions in the Drawings or Specifications for the Project, Contractor shall
provide a summary of the percentage of the claim subject to design errors or omissions and shall
obtain a certificate of merit in support of the claim of design errors and omissions.
3.10.3.8 Cover letter and certification of validity of the claim, including
any claims from subcontractors of any tier, in accordance with Government Code section 12650 et
seq.
3.10.4 City’s Response. Upon receipt of a claim pursuant to this Section, City shall
conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide
the Contractor a written statement identifying what portion of the claim is disputed and what portion
is undisputed. Any payment due on an undisputed portion of the claim will be processed and made
within 60 days after the public entity issues its written statement.
Updated: Feb. 2020 12
3.10.4.1 If City needs approval from its governing body to provide the
Contractor a written statement identifying the disputed portion and the undisputed portion of the
claim, and the governing body does not meet within the 45 days or within the mutually agreed to
extension of time following receipt of a claim sent by registered mail or certified mail, return receipt
requested, City shall have up to three days following the next duly publicly noticed meeting of the
governing body after the 45-day period, or extension, expires to provide the Contractor a written
statement identifying the disputed portion and the undisputed portion.
3.10.4.2 Within 30 days of receipt of a claim, City may request in
writing additional documentation supporting the claim or relating to defenses or claims City may
have against the Contractor. If additional information is thereafter required, it shall be requested and
provided pursuant to this subdivision, upon mutual agreement of City and the Contractor.
3.10.4.3 City’s written response to the claim, as further documented,
shall be submitted to the Contractor within 30 days (if the claim is less than $50,000, within 15 days)
after receipt of the further documentation, or within a period of time no greater than that taken by
the Contractor in producing the additional information or requested documentation, whichever is
greater.
3.10.5 Meet and Confer. If the Contractor disputes City’s written response, or City
fails to respond within the time prescribed, the Contractor may so notify City, in writing, either within
15 days of receipt of City’s response or within 15 days of City’s failure to respond within the time
prescribed, respectively, and demand an informal conference to meet and confer for settlement of
the issues in dispute. Upon receipt of a demand, City shall schedule a meet and confer conference
within 30 days for settlement of the dispute.
3.10.6 Mediation. Within 10 business days following the conclusion of the meet and
confer conference, if the claim or any portion of the claim remains in dispute, City shall provide the
Contractor a written statement identifying the portion of the claim that remains in dispute and the
portion that is undisputed. Any payment due on an undisputed portion of the claim shall be
processed and made within 60 days after City issues its written statement. Any disputed portion of
the claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with
City and the Contractor sharing the associated costs equally. City and Contractor shall mutually
agree to a mediator within 10 business days after the disputed portion of the claim has been
identified in writing, unless the parties agree to select a mediator at a later time.
3.10.6.1 If the Parties cannot agree upon a mediator, each Party shall
select a mediator and those mediators shall select a qualified neutral third party to mediate with
regard to the disputed portion of the claim. Each Party shall bear the fees and costs charged by its
respective mediator in connection with the selection of the neutral mediator.
3.10.6.2 For purposes of this section, mediation includes any
nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in
which an independent third party or board assists the Parties in dispute resolution through
negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes
in this section.
3.10.6.3 Unless otherwise agreed to by City and the Contractor in
writing, the mediation conducted pursuant to this section shall excuse any further obligation under
Section 20104.4 to mediate after litigation has been commenced.
Updated: Feb. 2020 13
3.10.6.4 The mediation shall be held no earlier than the date the
Contractor completes the Work or the date that the Contractor last performs Work, whichever is
earlier. All unresolved claims shall be considered jointly in a single mediation, unless a new
unrelated claim arises after mediation is completed.
3.10.7 Procedures After Mediation. If following the mediation, the claim or any
portion remains in dispute, the Contractor must file a claim pursuant to Chapter 1 (commencing with
Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the
Government Code. For purposes of those provisions, the running of the period of time within which
a claim must be filed shall be tolled from the time the Contractor submits his or her written claim
pursuant to subdivision (a) until the time the claim is denied, including any period of time utilized by
the meet and confer conference or mediation.
3.10.8 Civil Actions. The following procedures are established for all civil actions
filed to resolve claims subject to this Section:
3.10.8.1 Within 60 days, but no earlier than 30 days, following the filing
or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived
by mutual stipulation of both parties or unless mediation was held prior to commencement of the
action in accordance with Public Contract Code section 9204 and the terms of these procedures..
The mediation process shall provide for the selection within 15 days by both parties of a disinterested
third person as mediator, shall be commenced within 30 days of the submittal, and shall be
concluded within 15 days from the commencement of the mediation unless a time requirement is
extended upon a good cause showing to the court.
3.10.8.2 If the matter remains in dispute, the case shall be submitted
to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3
of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The Civil Discovery
Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of
Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the
rules pertaining to judicial arbitration.
3.10.8.3 In addition to Chapter 2.5 (commencing with Section
1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible, be
experienced in construction law, and (B) any party appealing an arbitration award who does not
obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter,
also pay the attorney’s fees on appeal of the other party.
3.10.9 Government Code Claims. In addition to any and all contract requirements
pertaining to notices of and requests for compensation or payment for extra work, disputed work,
claims and/or changed conditions, Contractor must comply with the claim procedures set forth in
Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government
Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited
to those matters that remain unresolved after all procedures pertaining to extra work, disputed work,
claims, and/or changed conditions have been followed by Contractor. If no such Government Code
claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as
specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the
City. A Government Code claim must be filed no earlier than the date the work is completed or the
date the Contractor last performs work on the Project, whichever occurs first. A Government Code
Updated: Feb. 2020 14
claim shall be inclusive of all unresolved claims unless a new unrelated claim arises after the
Government Code claim is submitted.
3.10.10 Non-Waiver. City’s failure to respond to a claim from the Contractor
within the time periods described in this Section or to otherwise meet the time requirements of this
Section shall result in the claim being deemed rejected in its entirety. City’s failure to respond shall
not waive City’s rights to any subsequent procedures for the resolution of disputed claims.
3.11 Loss and Damage. Except as may otherwise be limited by law, 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.
In the event of damage proximately caused by an Act of God, as defined by Section 7105 of the Public
Contract Code, the City may terminate this Contract pursuant to Section 3.17.3; provided, however,
that the City needs to provide Contractor with only one (1) day advanced written notice.
3.12 Indemnification.
3.12.1 Scope of Indemnity. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold the City, its officials, employees, agents and authorized
volunteers free and harmless from any and all claims, demands, causes of action, suits, actions,
proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or
injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively,
“Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or
omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors,
consultants or agents in connection with the performance of the Contractor’s services, the Project
or this Agreement, including without limitation the payment of all consequential damages, expert
witness fees and attorneys’ fees and other related costs and expenses. Notwithstanding the
foregoing, to the extent required by Civil Code section 2782, Contractor’s indemnity obligation shall
not apply to liability for damages for death or bodily injury to persons, injury to property, or any other
loss, damage or expense arising from the sole or active negligence or willful misconduct of the City
or the City’s agents, servants, or independent contractors who are directly responsible to the City,
or for defects in design furnished by those persons.
3.12.2 Additional Indemnity Obligations. Contractor shall defend, with
counsel of City’s choosing and at Contractor's own cost, expense and risk, any and all Claims
covered by this section that may be brought or instituted against City or its officials, employees,
agents and authorized volunteers. In addition, Contractor shall pay and satisfy any judgment, award
or decree that may be rendered against City or its officials, employees, agents and authorized
volunteers as part of any such claim, suit, action or other proceeding. Contractor shall also
reimburse City for the cost of any settlement paid by City or its officials, employees, agents and
authorized volunteers as part of any such claim, suit, action or other proceeding. Such
reimbursement shall include payment for City's attorney's fees and costs, including expert witness
fees. Contractor shall reimburse City and its officials, employees, agents and authorized volunteers,
for any and all legal expenses and costs incurred by each of them in connection therewith or in
enforcing the indemnity herein provided. Contractor's obligation to indemnify shall not be restricted
to insurance proceeds, if any, received by the City, its officials, employees, agents and authorized
volunteers.
3.13 Insurance.
Updated: Feb. 2020 15
3.13.1 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. Failure to provide and maintain all required
insurance shall be grounds for the City to terminate this Contract for cause.
3.13.2 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 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:
3.13.2.1 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 00 01) OR Insurance Services Office
Owners and Contractors Protective Liability Coverage Form (CG 00 09 11 88) (coverage for
operations of designated contractor); (2) Automobile Liability: Insurance Services Office Business
Auto Coverage form number CA 00 01, code 1 (any auto); and (3) Workers’ Compensation and
Employer’s Liability: Workers’ Compensation insurance as required by the State of California and
Employer’s Liability Insurance. Policies shall not contain exclusions contrary to this Contract.
3.13.2.2 Minimum Limits of Insurance. Contractor shall maintain
limits no less than: (1) General Liability: $5,000,000 per occurrence and $5,000,000 aggregate for
bodily injury, personal injury and property damage; (2) Automobile Liability: $5,000,000 per accident
for bodily injury and property damage; and (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 each accident, policy limit bodily injury or disease, and each employee
bodily injury or disease. Defense costs shall be available in addition to the limits. Notwithstanding
the minimum limits specified herein, any available coverage shall be provided to the parties required
to be named as additional insureds pursuant to this Contract.
3.13.3 Insurance Endorsements. The insurance policies shall contain the
following provisions, or Contractor shall provide endorsements (amendments) on forms supplied or
approved by the City to add the following provisions to the insurance policies:
3.13.3.1 General Liability. (1) Such policy shall give the City, its
officials, employees, agents and authorized volunteers additional insured status using ISO
endorsements CG20 10 10 01 plus CG20 37 10 01, or endorsements providing the exact same
coverage, with respect to the Work or operations performed by or on behalf of Contractor, including
materials, parts or equipment furnished in connection with such work. Contractor may provide
blanket endorsements to meet the Additional Insured requirement in this written contract. However,
all subcontractors’ endorsements shall specifically name the City, its elected officials, officers,
employees, volunteers, boards, agents, and representatives as additional insureds and blanket
endorsements are not acceptable; (2) all policies shall waive or shall permit Contractor to waive all
rights of subrogation which may be obtained by the Contractor or any insurer by virtue of payment of
any loss or any coverage provided to any person named as an additional insured pursuant to this
Contract, and Contractor agrees to waive all such rights of subrogation; and (3) the insurance
Updated: Feb. 2020 16
coverage shall be primary insurance as respects the City, its officials, employees, agents and
authorized volunteers, or if excess, shall stand in an unbroken chain of coverage excess of
Contractor’s scheduled underlying coverage. Any insurance or self-insurance maintained by the
City, its officials, employees, agents and authorized volunteers shall be excess of Contractor’s
insurance and shall not be called upon to contribute with it.
3.13.3.2 Automobile Liability. (1) Such policy shall give the City, its
officials, employees, agents and authorized volunteers additional insured status with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or
borrowed by Contractor or for which Contractor is responsible. Contractor may provide blanket
endorsements to meet the Additional Insured requirement in this written contract. However, all
subcontractors’ endorsements shall specifically name the City, its elected officials, officers,
employees, volunteers, boards, agents, and representatives as additional insureds and blanket
endorsements are not acceptable.; (2) all policies shall waive or shall permit Contractor to waive all
rights of subrogation which may be obtained by the Contractor or any insurer by virtue of payment of
any loss or any coverage provided to any person named as an additional insured pursuant to this
Contract, and Contractor agrees to waive all such rights of subrogation; and (3) the insurance
coverage shall be primary insurance as respects the City, its officials, employees, agents and
authorized volunteers, or if excess, shall stand in an unbroken chain of coverage excess of
Contractor’s scheduled underlying coverage. Any insurance or self-insurance maintained by the
City, its officials, employees, agents and authorized volunteers shall be excess of Contractor’s
insurance and shall not be called upon to contribute with it in any way.
3.13.3.3 Workers’ Compensation and Employer’s Liability Coverage.
The insurer shall agree to waive all rights of subrogation against the City, its officials, employees,
agents and authorized volunteers for losses paid under the terms of the insurance policy which arise
from work performed by Contractor.
3.13.3.4 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 officials,
employees, agents and authorized volunteers.
3.13.4 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 officials, employees, agents and authorized volunteers.
3.13.5 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 officials, employees, agents and authorized volunteers;
or (2) the Contractor shall procure a bond or other financial guarantee acceptable to the City
guaranteeing payment of losses and related investigation costs, claims and administrative and
defense expenses.
3.13.6 Acceptability of Insurers. Insurance is to be placed with insurers with
a current A.M. Best’s rating no less than A:VII, licensed to do business in California, and satisfactory
Updated: Feb. 2020 17
to the City. Exception may be made for the State Compensation Insurance Fund when not
specifically rated.
3.13.7 Verification of Coverage. 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.
3.13.8 Subcontractors. All subcontractors shall meet the requirements of
this Section before commencing Work. Contractor shall furnish separate certificates and
endorsements for each subcontractor. Subcontractor policies of General Liability insurance shall
name the City, its officials, employees, agents and authorized volunteers as additional insureds
using form ISO 20 38 04 13 or endorsements providing the exact same coverage. All subcontractors’
endorsements shall specifically name the City, its elected officials, officers, employees, volunteers,
boards, agents, and representatives as additional insureds and blanket endorsements are not
acceptable. All coverages for subcontractors shall be subject to all of the requirements stated herein
except as otherwise agreed to by the City in writing.
3.13.9 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.
3.14 Bond Requirements.
3.14.1 Payment Bond. If required by law or otherwise specifically requested by City
in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and
provide to City concurrently with this Contract a Payment Bond in an amount required by the City
and in a form provided or approved by the City. If such bond is required, no payment will be made to
Contractor until the bond has been received and approved by the City.
3.14.2 Performance Bond. If specifically requested by City in Exhibit “C” attached
hereto and incorporated herein by reference, Contractor shall execute and provide to City
concurrently with this Contract a Performance Bond in an amount required by the City and in a form
provided or approved by the City. If such bond is required, no payment will be made to Contractor
until the bond has been received and approved by the City.
3.14.3 Bond Provisions. Should, in City’s sole opinion, any bond become
insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the
effected bond within (ten) 10 days of receiving notice from City. In the event the surety or Contractor
intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be
given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days
prior to expiration of the original bonds. No further payments shall be deemed due or will be made
under this Contract until any replacement bonds required by this Section are accepted by the City.
To the extent, if any, that the Total Contract Price is increased in accordance with the Contract,
Contractor shall, upon request of the City, cause the amount of the bond to be increased accordingly
and shall promptly deliver satisfactory evidence of such increase to the City. If Contractor fails to
furnish any required bond, the City may terminate the Contract for cause.
Updated: Feb. 2020 18
3.14.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as
defined in California Code of Civil Procedure Section 995.120, shall be accepted. If a California-
admitted surety insurer issuing bonds does not meet these requirements, the insurer will be
considered qualified if it is in conformance with Section 995.660 of the California Code of Civil
Procedure, and proof of such is provided to the City.
3.15 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
Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with
respect to any portion of the 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.
3.16 Employee/Labor Certifications.
3.16.1 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. A certification form for this purpose, which is
attached to this Contract as Exhibit “D” and incorporated herein by reference, shall be executed
simultaneously with this Contract.
3.16.2 Equal Opportunity Employment. 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
Updated: Feb. 2020 19
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.
3.16.3 Verification of Employment Eligibility. By executing this Contract, Contractor
verifies that it fully complies with all requirements and restrictions of state and federal law
respecting the employment of undocumented aliens, including, but not limited to, the Immigration
Reform and Control Act of 1986, as may be amended from time to time, and shall require all
subcontractors and sub-subcontractors to comply with the same.
3.17 General Provisions.
3.17.1 City’s Representative. The City hereby designates the General Manager, 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 her designee.
3.17.2 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, Contractor’s Representative shall have full authority to represent and act on
behalf of Contractor for all purposes under this Contract. 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.
3.17.3 Termination. This Contract may be terminated by City at any time, either with
our without cause, by giving Contractor three (3) days advance written notice. In the event of
termination by City for any reason other than the fault of Contractor, City shall pay Contractor for all
Work performed up to that time as provided herein. In the event of breach of the Contract by
Contractor, City may terminate the Contract immediately without notice, may reduce payment to
Contractor in the amount necessary to offset City’s resulting damages, and may pursue any other
available recourse against Contractor. Contractor may not terminate this Contract except for cause.
In the event this Contract is terminated in whole or in part as provided, City may procure, upon such
terms and in such manner as it may determine appropriate, services similar to those terminated.
Further, if this Contract is terminated as provided, City may require Contractor to provide all finished
or unfinished documents, data, diagrams, drawings, materials or other matter prepared or built by
Contractor in connection with its performance of this Contract.
3.17.4 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.
Updated: Feb. 2020 20
3.17.5 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, 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 Contractor, without further acknowledgment by the Parties.
3.17.6 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:
C ONTRACTOR:
Horizons Construction Company International, Inc.
432 W. Meats Avenue
Orange, CA 92865
Attn: Kinan Kotrash
C ITY:
City of Arcadia
240 West Huntington Drive
Arcadia, California 91066
Attn: Dave Thompson, Streets Superintendent
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.
3.17.7 Time of Essence. Time is of the essence in the performance of this Contract.
3.17.8 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.
3.17.9 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.17.10 Laws, Venue, and Attorneys’ Fees. This Agreement shall be
interpreted in accordance with the laws of the State of California. If any action is brought to interpret
or enforce any term of this Agreement, the action shall be brought in a state or federal court situated
in the County of Los Angeles, State of California.
3.17.11 Counterparts. This Contract may be executed in counterparts, each
of which shall constitute an original.
Updated: Feb. 2020 21
3.17.12 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.
3.17.13 [Reserved]
3.17.14 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.
3.17.15 Conflict of Interest. 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 Agreement. 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 Agreement. For breach or violation of this
warranty, City shall have the right to rescind this Agreement without liability. For the term of this
Contract, no official, 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.
3.17.16 Certification of License.
3.17.16.1 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.
3.17.16.2 Contractors are required by law to be licensed and regulated
by the Contractors’ State License Board which has jurisdiction to investigate complaints against
contractors if a complaint regarding a patent act or omission is filed within four (4) years of the date
of the alleged violation. A complaint regarding a latent act or omission pertaining to structural
defects must be filed within ten (10) years of the date of the alleged violation. Any questions
concerning a contractor may be referred to the Registrar, Contractors’ State License Board, P.O. Box
26000, Sacramento, California 95826.
3.17.17 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.
3.17.18 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.
Updated: Feb. 2020 22
3.17.19 Non-Waiver. None of the provisions of this Agreement shall be
considered waived by either party, unless such waiver is specifically specified in writing.
3.17.20 City’s Right to Employ Other Contractors. City reserves right to
employ other contractors in connection with this Project or other projects.
[SIGNATURES ON NEXT PAGE]
Updated: Feb. 2020 23
SIGNATURE PAGE FOR CONSTRUCTION CONTRACT
BETWEEN THE CITY OF ARCADIA
AND HORIZONS CONSTRUCTION COMPANY INTERNATIONAL, INC.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the
_______ day of ________________, 20_____.
CITY OF ARCADIA HORIZONS CONSTRUCTION CO. INT’L. INC.
By: By:
Dominic Lazaretto
City Manager Its:
Printed Name:
ATTEST: By:
Its:
By:
City Clerk Printed Name:
APPROVED AS TO FORM:
By:
Michael J. Maurer
City Attorney
Updated: Feb. 2020 24
EXHIBIT “A”
SERVICES / SCHEDULE
The project plan and proposal (Work Order Number 148322.00 and Work Order Number
10652.00) are incorporated into this Contract. (see attachment “A”).
The project plan and proposal (EZIQC Contract No.: CA-R8-GB-101723-HRZ) are incorporated
into this Contract.
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EXHIBIT “B”
PLANS AND SPECIFICATIONS
All service and unit specifications are listed in Exhibit “A”.
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EXHIBIT “C”
SPECIAL CONDITIONS
ARTICLE 1. BONDS
Within ten (10) calendar days from the date the Contractor is notified of award of the Contract, the
Contractor shall deliver to the City four identical counterparts of the Performance Bond and Payment
Bond on the forms supplied by the City and included as Exhibit “F” to the Contract. Failure to do so
may, in the sole discretion of City, result in the forfeiture of Contractor’s bid security. The surety
supplying the bond must be an admitted surety insurer, as defined in Code of Civil Procedure Section
995.120, authorized to do business as such in the State of California and satisfactory to the City. The
Performance Bond and the Payment Bond shall be for one hundred percent (100%) of the Total
Contract Price.
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EXHIBIT “D”
CERTIFICATION
LABOR CODE - SECTION 1861
I, the undersigned Contractor, am aware of the provisions of Section 3700, et seq., 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 the Code, and I,
the undersigned Contractor, agree to and will comply with such provisions before commencing the
performance of the Work on this Contract.
HORIZONS CONSTRUCTION COMPANY
INTERNATIONAL, INC.
By: _________________________
Signature
_________________________
Name (Print)
_________________________
Title (Print)
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24347.00006\9536520.5
EXHIBIT “E”
PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION
Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish
to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be
registered with the Department of Industrial Relations. See http://www.dir.ca.gov/Public-
Works/PublicWorks.html for additional information.
No bid will be accepted nor any contract entered into without proof of the contractor’s and
subcontractors’ current registration with the Department of Industrial Relations to perform public
work.
Contractor hereby certifies that it is aware of the registration requirements set forth in Labor Code
sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of
Industrial Relations.1
Name of Contractor:
DIR Registration Number:
DIR Registration Expiration:_________________________
Small Project Exemption: _____ Yes or _____ No
Unless Contractor is exempt pursuant to the small project exemption, Contractor further
acknowledges:
• Contractor shall maintain a current DIR registration for the duration of the project.
• Contractor shall include the requirements of Labor Code sections 1725.5 and 1771.1 in its
contract with subcontractors and ensure that all subcontractors are registered at the time of
bid opening and maintain registration status for the duration of the project.
• Failure to submit this form or comply with any of the above requirements may result in a
finding that the bid is non-responsive.
Name of Contractor
Signature
Name and Title
Dated
1 If the Project is exempt from the contractor registration requirements pursuant to the small project exemption under
Labor Code Sections 1725.5 and 1771.1, please mark “Yes” in response to “Small Project Exemption.”
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24347.00006\9536520.5
EXHIBIT “F”
PAYMENT AND PERFORMANCE BONDS
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24347.00006\9536520.5
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of Arcadia (hereinafter referred to as “City”) has awarded to
Horizons Construction Company Int’l. Inc., (hereinafter referred to as the “Contractor”) an
agreement for Debris Basins Debris Removal Project, Contract No. ________ (hereinafter referred
to as the “Project”).
WHEREAS, the work to be performed by the Contractor is more particularly set forth in the
Contract Documents for the Project dated ________________, (hereinafter referred to as “Contract
Documents”), the terms and conditions of which are expressly incorporated herein by reference;
and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms
thereof and to furnish a bond for the faithful performance of said Contract Documents.
NOW, THEREFORE, we, _______________, the undersigned Contractor and
_____________________________________________ as Surety, a corporation organized and duly
authorized to transact business under the laws of the State of California, are held and firmly bound
unto the City in the sum of THREE HUNDRED TWO THOUSAND, EIGHT HUNDRED TWENTY-EIGHT
DOLLARS AND SIXTY-THREE CENTS ($302,828.63), said sum being not less than one hundred
percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we
bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and
severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs,
executors, administrators, successors or assigns, shall in all things stand to and abide by, and well
and truly keep and perform the covenants, conditions and agreements in the Contract Documents
and any alteration thereof made as therein provided, on its part, to be kept and performed at the time
and in the manner therein specified, and in all respects according to their intent and meaning; and
shall faithfully fulfill all obligations including the one-year guarantee of all materials and
workmanship; and shall indemnify and save harmless the City, its officers and agents, as stipulated
in said Contract Documents, then this obligation shall become null and void; otherwise it shall be
and remain in full force and effect.
As a condition precedent to the satisfactory completion of the Contract Documents, unless
otherwise provided for in the Contract Documents, the above obligation shall hold good for a period
of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to
make full, complete, and satisfactory repair and replacements and totally protect the City from loss
or damage resulting from or caused by defective materials or faulty workmanship, Surety shall
undertake and faithfully fulfill all such obligations. The obligations of Surety hereunder shall
continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights
or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited
to, California Code of Civil Procedure section 337.15.
Whenever Contractor shall be, and is declared by the City to be, in default under the Contract
Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall
promptly, at the City’s option:
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24347.00006\9536520.5
(1) Take over and complete the Project in accordance with all terms and conditions in
the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and
conditions in the Contract Documents and upon determination by Surety of the
lowest responsive and responsible bidder, arrange for a Contract between such
bidder, the Surety and the City, and make available as work progresses sufficient
funds to pay the cost of completion of the Project, less the balance of the contract
price, including other costs and damages for which Surety may be liable. The term
“balance of the contract price” as used in this paragraph shall mean the total amount
payable to Contractor by the City under the Contract and any modification thereto,
less any amount previously paid by the City to the Contractor and any other set offs
pursuant to the Contract Documents.
(3) Permit the City to complete the Project in any manner consistent with local,
California and federal law and make available as work progresses sufficient funds to
pay the cost of completion of the Project, less the balance of the contract price,
including other costs and damages for which Surety may be liable. The term
“balance of the contract price” as used in this paragraph shall mean the total amount
payable to Contractor by the City under the Contract and any modification thereto,
less any amount previously paid by the City to the Contractor and any other set offs
pursuant to the Contract Documents.
Surety expressly agrees that the City may reject any contractor or subcontractor which may
be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.
Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from
Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies
Surety of the City’s objection to Contractor’s further participation in the completion of the Project.
The Surety, for value received, hereby stipulates and agrees that no change, extension of
time, alteration or addition to the terms of the Contract Documents or to the Project to be performed
thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any
such change, extension of time, alteration or addition to the terms of the Contract Documents or to
the Project, including but not limited to the provisions of sections 2819 and 2845 of the California
Civil Code.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of
______________, 20____.
(Corporate Seal)
Contractor/ Principal
By
Title
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24347.00006\9536520.5
(Corporate Seal) Surety
By
Attorney-in-Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence of
corporate authority attached.
(Attach Attorney-in-Fact Certificate) Title
The rate of premium on this bond is ____________ per thousand. The total amount of premium
charges, $_______________________________.
(The above must be filled in by corporate attorney.)
THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety) ___________________________________________
___________________________________________
___________________________________________
(Name and Address of Agent or ___________________________________________
Representative for service of
process in California, if different ___________________________________________
from above)
___________________________________________
(Telephone number of Surety and ___________________________________________
Agent or Representative for service
of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do
so must be attached hereto.
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24347.00006\9536520.5
Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally
appeared , who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true
and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
☐ Individual
☐ Corporate Officer
Title(s) Title or Type of Document
☐ Partner(s) ☐ Limited
☐ General Number of Pages
☐ Attorney-In-Fact
☐ Trustee(s)
☐ Guardian/Conservator Date of Document
☐ Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
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24347.00006\9536520.5
PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of Arcadia (hereinafter designated as the “City”), by action taken or a
resolution passed November 18, 2025 has awarded to Horizons Construction Co. Int’l., Inc.
hereinafter designated as the “Principal,” a contract for the work described as follows: Debris
Basins Debris Removal Project, Contract No. ________ (the “Project”); and
WHEREAS, the work to be performed by the Principal is more particularly set forth in the
Contract Documents for the Project dated __________________ (“Contract Documents”), the terms
and conditions of which are expressly incorporated by reference; and
WHEREAS, said Principal is required to furnish a bond in connection with said contract;
providing that if said Principal or any of its Subcontractors shall fail to pay for any materials,
provisions, provender, equipment, or other supplies used in, upon, for or about the performance of
the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts
due under the Unemployment Insurance Code or for any amounts required to be deducted,
withheld, and paid over to the Employment Development Department from the wages of employees
of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond
will pay for the same to the extent hereinafter set forth.
NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and
firmly bound unto the City in the penal sum of THREE HUNDRED TWO THOUSAND, EIGHT
HUNDRED TWENTY-EIGHT DOLLARS AND SIXTY-THREE CENTS ($302,828.63) lawful money of the
United States of America, for the payment of which sum well and truly to be made, we bind ourselves,
our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these
presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its
subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the
persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other
supplies, used in, upon, for or about the performance of the work contracted to be done, or for any
work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with
respect to work or labor performed under the contract, or for any amounts required to be deducted,
withheld, and paid over to the Employment Development Department or Franchise Tax Board from
the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the
Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for
the same, in an amount not exceeding the sum herein above specified.
This bond shall inure to the benefit of any of the persons named in Section 9100 of the Civil
Code so as to give a right of action to such persons or their assigns in any suit brought upon this
bond.
It is further stipulated and agreed that the Surety on this bond shall not be exonerated or
released from the obligation of this bond by any change, extension of time for performance, addition,
alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or
relating to any scheme or work of improvement herein above described, or pertaining or relating to
the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any
terms of payment or extension of the time for any payment pertaining or relating to any scheme or
work of improvement herein above described, nor by any rescission or attempted rescission of the
contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting
to limit the right of recovery of claimants otherwise entitled to recover under any such contract or
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24347.00006\9536520.5
agreement or under the bond, nor by any fraud practiced by any person other than the claimant
seeking to recover on the bond and that this bond be construed most strongly against the Surety and
in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety
be released from liability to those for whose benefit such bond has been given, by reason of any
breach of contract between the owner or City and original contractor or on the part of any obligee
named in such bond, but the sole conditions of recovery shall be that claimant is a person described
in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety
does hereby waive notice of any such change, extension of time, addition, alteration or modification
herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of
______________, 20__.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal) Surety
By
Attorney-in-Fact
Title
Signatures of those signing for the Contractor and Surety must be notarized and evidence of
corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the
Surety to do so must be attached hereto.
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do
so must be attached hereto.
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24347.00006\9536520.5
Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally
appeared , who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true
and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
☐ Individual
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24347.00006\9536520.5
EXHIBIT “G”
FEDERAL REQUIREMENTS
Not Applicable.
Rev. 4/2021 Sourcewell IFB #CA-101723
Indefinite Delivery-Indefinite Quantity Construction Contracts in the State of California
Page 1
Indefinite Delivery-Indefinite Quantity Construction Contract
Contract Number: CA-R8-GB-101723-HRZ
Service Type: General Building
This Indefinite Delivery-Indefinite Quantity Construction Contract (Contract) is between Sourcewell, 202
12th Street Northeast, P.O. Box 219, Staples, MN 56479 and Horizons Construction Company Int'l Inc.,
432 W Meats Avenue, Orange , California 92865 (Contractor).
Sourcewell is a State of Minnesota local government agency and service cooperative created under the
laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative
procurement solutions to government entities. Participation is open to federal, state and municipal
governmental entities, K-12 and higher education entities, nonprofit entities, tribal governments, and
other public entities located within the United States.
The Contractor desires to contract with Sourcewell to provide construction services to entities that
access Sourcewell’s indefinite delivery-indefinite quantity (IDIQ) construction contracts within the
Service Region.
I.TERM OF CONTRACT
A.EFFECTIVE DATE. This Contract, including the General Terms and Conditions incorporated by
reference, is effective upon the later of December 6, 2023 or the date of the final signature below.
B.EXPIRATION DATE AND EXTENSION. This Contract expires December 5, 2024, unless it is terminated
sooner pursuant to Article XX of the General Terms and Conditions, which are incorporated into this
Contract by reference. This Contract allows up to five additional one-year extensions upon the request
of Sourcewell and written agreement with Contractor. Sourcewell retains the right to consider
additional extensions beyond six years as required under exceptional circumstances.
II.REGION AND SERVICES
The Contractor’s Region is: Region 8. The Contractor’s IDIQ construction service type is: General
Building. The Contractor has agreed to perform work outside the Region.
III.ADJUSTMENT FACTORS
The Contractor will perform any or all Tasks in the Construction Task Catalog for the Unit Price appearing
therein multiplied by the following Adjustment Factors. See the General Terms and Conditions for
additional information.
A.Normal Working Hours – Prevailing Wage Rate Projects: Work performed from 7:00 a.m. until 4:00
p.m. Monday to Friday, except Holidays. The Contractor will perform Tasks during Normal Working
Hours for the Unit Price set forth in the CTC multiplied by the Adjustment Factor of: 1.0300.
Rev. 4/2021 Sourcewell IFB #CA-101723
Indefinite Delivery-Indefinite Quantity Construction Contracts in the State of California
Page 2
B. Other Than Normal Working Hours – Prevailing Wage Rate Projects: Work performed from 4:00
p.m. to 7:00 a.m. Monday to Friday, and any time Saturday, Sunday and Holidays. The Contractor will
perform Tasks during Other Than Normal Working Hours for the Unit Price set forth in the CTC
multiplied by the Adjustment Factor of: 1.0700.
C. Secured Facilities/OSHPD Prevailing - Wage Rate Projects: Work performed from 7:00 a.m. until
4:00 p.m. Monday to Friday, except Holidays. The Contractor will perform Tasks during Normal Working
Hours for the Unit Price set forth in the CTC multiplied by the Adjustment Factor of: 1.0700.
D. All Union Wage Projects: Work performed from 7:00 a.m. until 4:00 p.m. Monday to Friday, except
Holidays. The Contractor will perform Tasks during Normal Working Hours for the Unit Price set forth in
the CTC multiplied by the Adjustment Factor of: 1.0700.
E. Non pre-priced Adjustment Factor: To be applied to Work determined not to be included in the CTC
but within the general scope of the work: 1.1500.
VI. AUTHORIZED REPRESENTATIVE
A. Sourcewell's Authorized Representative is its Chief Procurement Officer.
B. The Contractor’s Authorized Representative is Kinan Kotrash. If the Contractor’s Authorized
Representative changes at any time during this Contract, Contractor must promptly notify Sourcewell in
writing.
Sourcewell
Horizons Construction Company Int'l Inc.
By: __________________________ By: __________________________
Jeremy Schwartz Kinan Kotrash
Title: Chief Procurement Officer Title: Vice President
Date:
Date:
AGREEMENT TO
MODIFY AND EXTEND
SOURCEWELL CONTRACT #CA-R8-GB-101723-HRZ
THIS AGREEMENT TO MODIFY AND EXTEND, Sourcewell Contract #CA-R8-GB-101723-HRZ, is effective
upon the date of the last signature below.
Sourcewell and Horizons Construction Company Int'l Inc. (“Contractor”) have entered into an Indefinite
Delivery-Indefinite Quantity Construction Contract, Contract Number CA-R8-GB-101723-HRZ, with an
initial term ending December 5, 2024, and five bilateral options to extend for an additional one-year
term (“Contract”). The parties agree to modify and extend the Contract as stated below.
CONTRACT MODIFICATION
The following is adopted as the new CTC for the Contract effective December 6, 2024:
Sourcewell California - Region 8
Pursuant to the Contract, Contractor’s Adjustment Factors remain fixed for the duration of the contract
term and are unaffected by this modification.
EXERCISE OF OPTION: EXTENSION
Contractor and Sourcewell hereby desire and agree to extend the Contract, with the above modification,
for the period of December 6, 2024 through December 5, 2025.
Sourcewell Horizons Construction Company Int'l Inc.
By: __________________________ By: __________________________
Jeremy Schwartz Kinan Kotrash
Title: Chief Procurement Officer Title: Vice President
Date: Date:
Docusign Envelope ID: 2A9A2EA6-8071-40D2-A3ED-7F956BB8563C
11/15/2024 | 10:09 AM PST11/15/2024 | 6:11 PM CST
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RESOLUTION NO. 7660
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA AMENDING THE FISCAL YEAR 2025-26 CAPITAL
IMPROVEMENT PROGRAM BUDGET, AUTHORIZING A SUPPLEMENTAL
BUDGET APPROPRIATION FOR THE DEBRIS BASINS DEBRIS REMOVAL
PROJECT IN THE AMOUNT OF $302,828.63, OFFSET BY A REDUCTION IN
THE CAPITAL OUTLAY FUND
WHEREAS, the Eaton Fire caused significant wildfire damage to the northern
hillsides of the city and caused the slopes to become scarred and destabilized; and
WHEREAS, the debris basins located at 2273 Highland Vista Drive and 2225
Canyon Road were filled to capacity from subsequent mudflow events; and
WHEREAS, the debris basins need to be cleared from debris in order to restore
their capacity and structural integrity; and
WHEREAS, the total cost for the Debris Basins Debris Removal Project is
$302,828.63; and
WHEREAS, the need for this project was not anticipated and therefore, no
funds were included in the Fiscal Year 2025-26 Capital Improvement Program Budget
for this Project; and
WHEREAS, an amendment to the Fiscal Year 2025-26 Capital Improvement
Program Budget authorizing a supplemental budget appropriation in the amount of
$302,828.63 is needed for the Debris Basins Debris Removal Project; and
WHEREAS, the supplemental budget appropriation will be offset by a reduction
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in the Capital Outlay Fund; and
WHEREAS, the City Manager has certified that there are sufficient reserves
available in the Capital Outlay Fund.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA,
DOES FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. The sum of Three Hundred Two Thousand, Eight Hundred Twenty-
Eight Dollars and Sixty-Three Cents ($302,828.63) is hereby appropriated in the
Capital Improvement Program Budget for the forgoing purposes, offset with an equal
reduction in the Capital Outlay Fund.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
[SIGNATURES ON THE NEXT PAGE]
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Passed, approved and adopted this 18th day of November, 2025.
Mayor of the City of Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
____________________________
Michael J. Maurer
City Attorney