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CITY OF ARCADIA
SHORT -FORM CONSTRUCTION CONTRACT
SIDEWALK GAP CLOSURE - PHASE II
1. PARTIES AND DATE.
This Contract is made and entered into this day of
u , 2004 by and between the CITY OF ARCADIA, a municipal
organization organized under the laws of the State of California with its principal place
of business at 240 West Huntington Drive, Arcadia, California 91007 ( "City ") and EGN
CONSTRUCTION INC., a California corporation, with its principal place of business at
678 Valley View Ct., Upland, CA. 91784 ( "Contractor "). City and Contractor are
sometimes individually referred to as "Party" and collectively as "Parties." 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 municipal corporation 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 experienced in
providing 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 is familiar with the plans of City.
2.3 Project City desires to engage Contractor to render such services for the
Sidewalk Gap Closure — Phase II ( "Project ") as set forth in this Contract.
2.4 Project Documents and Certifications Contractor has obtained, and
delivers concurrently herewith, Performance Bond, Payment Bond, General Liability
Insurance Certificate with an Additional Insured Endorsement, Automobile Liability
Insurance with an Additional Insured Endorsement, and Workers Compensation
Insurance with Waiver of Subrogation 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:
Construction Plan and referenced Standards, Standard Specifications for Public Works
Construction, W. A. T. C. H. Manual.
3.2 Contractor's Basic Obligation; Scope of Work Contractor promises and
agrees, at its own cost and expense, to furnish to the Owner all labor, materials, tools,
equipment, services, and incidental and customary work necessary to fully and
adequately complete the Project, including all structures and facilities necessary for the
Project or described in the Contract (hereinafter sometimes referred to as the "Work "),
for a Total Contract Price as specified pursuant to this Contract. All Work shall be
subject to, and performed in accordance with the above referenced documents, as well
as the exhibits attached hereto and incorporated herein by reference. The plans and
specifications for the Work are further described in Exhibit "A" attached hereto and
incorporated herein by this reference. Special conditions, if any, relating to the Work
are described in Exhibit "B" attached hereto and incorporated herein by this reference.
3.3 Change in Scope of Work Any change in the scope of the Work, method
of performance, nature of materials or price thereof, or any other matter materially
affecting the performance or nature of the Work shall not be paid for or accepted unless
such change, addition or deletion is approved in advance and in writing by a valid
change order executed by the City.
3.4 Period of Performance and Liquidated Damages Contractor shall perform
and complete all Work under this Contract within ten (10) 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 the Contractor. Contractor agrees that if such Work is not completed within
the aforementioned Contract Time and /or pursuant to any such completion schedule,
construction schedule or project milestones developed pursuant to provisions of the
Contract, it is understood, acknowledged and agreed that the City will suffer damage.
Since it is impractical and infeasible to determine the amount of actual damage, it is
agreed that the Contractor shall pay to the City as fixed and liquidated damages, and
not as a penalty, the sum of two hundred fifty dollars and zero cents ($250.00) 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.
3.5 Standard of Performance; Performance of Employees Contractor shall
perform all Work under this Contract in a skillful and workmanlike manner, and
consistent with the standards generally recognized as being employed by professionals
in the same discipline in the State of California. Contractor represents and maintains
that it is skilled in the professional calling necessary to perform the Work. Contractor
warrants that all employees and subcontractors shall have sufficient skill and
experience to perform the Work assigned to them. Finally, Contractor represents that it,
its employees and subcontractors have all licenses, permits, qualifications and
approvals of whatever nature that are legally required to perform the Work, including a
City Business License, and that such licenses and approvals shall be maintained
throughout the term of this Contract. As provided for in the indemnification provisions of
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this Contract, Contractor shall perform, at its own cost and expense and without
reimbursement from the City, any work necessary to correct errors or omissions which
are caused by the Contractor's failure to comply with the standard of care provided for
herein. Any employee who is determined by the City to be uncooperative, incompetent,
a threat to the safety of persons or the Work, or any employee who fails or refuses to
perform the Work in a manner acceptable to the City, shall be promptly removed from
the Project by the Contractor and shall not be re- employed on the Work.
3.6 Control and Payment of Subordinates; Contractual Relationship City
retains Contractor on an independent contractor basis and Contractor is not an
employee of City. Any additional personnel performing the work governed by this
Contract on behalf of Contractor shall at all times be under Contractor's exclusive
direction and control. Contractor shall pay all wages, salaries, and other amounts due
such personnel in connection with their performance under this Contract and as
required by law. Contractor shall be responsible for all reports and obligations
respecting such additional personnel, including, but not limited to: social security taxes,
income tax withholding, unemployment insurance, and workers' compensation
insurance.
3.7 City's Basic Obligation City agrees to engage and does hereby engage
Contractor as an independent contractor to furnish all materials and to perform all Work
according to the terms and conditions herein contained for the sum set forth above.
Except as otherwise provided in the Contract, the City shall pay to Contractor, as full
consideration for the satisfactory performance by the Contractor of the services and
obligations required by this Contract, the above referenced compensation in accordance
with compensation provisions set forth in the Contract.
3.8 Compensation and Payment
3.8.1 Amount of Compensation As consideration for performance of the
Work required herein, City agrees to pay Contractor the Total Contract Price of
Twenty -Two Thousand Nine Hundred Ninety -Three Dollars and Zero Cents
($22,993.00) ( "Total Contract Price ") provided that such amount shall be subject to
adjustment pursuant to the applicable terms of this Contract or written change orders
approved and signed in advance by the City.
3.8.2 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
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been done and that the materials listed are stored where indicated. Contractor may be
required to furnish a detailed schedule of values upon request of the City and in such
detail and form as the City shall request, showing the quantities, unit prices, overhead,
profit, and all other expenses involved in order to provide a basis for determining the
amount of progress payments.
City shall review and pay all progress payment requests in accordance
with the provisions set forth in Section 20104.50 of the California Public Contract Code.
No progress payments will be made for Work not completed in accordance with this
Contract.
3.8.3 Contract Retentions From each approved progress
estimate, ten percent (10 %) will be deducted and retained by the City, and the
remainder will be paid to Contractor. All Contract retention shall be released and paid
to the Contractor and subcontractors pursuant to California Public Contract Code
Section 7107.
3.8.4 Other Retentions In addition to Contract retentions, the City
may deduct from each progress payment an amount necessary to protect City from loss
because of: (1) liquidated damages which have accrued as of the date of the application
for payment; (2) any sums expended by the City in performing any of Contractor's
obligations under the Contract which Contractor has failed to perform or has performed
inadequately; (3) defective Work not remedied; (4) stop notices as allowed by state law;
(5) reasonable doubt that the Work can be completed for the unpaid balance of the
Total Contract Price or within the scheduled completion date; (6) unsatisfactory
prosecution of the Work by Contractor; (7) unauthorized deviations from the Contract;
(8) failure of the Contractor to maintain or submit on a timely basis proper and sufficient
documentation as required by the Contract or by City during the prosecution of the
Work; (9) erroneous or false estimates by the Contractor of the value of the Work
performed; (10) any sums representing expenses, losses, or damages as determined
by the City, incurred by the City for which Contractor is liable under the Contract; and
(11) any other sums which the City is entitled to recover from Contractor under the
terms of the Contract or pursuant to state law, including Section 1727 of the California
Labor Code. The failure by the City to deduct any of these sums from a progress
payment shall not constitute a waiver of the City's right to such sums.
3.8.5 Substitutions for Contract Retentions In accordance with
California Public Contract Code Section 22300, the City will permit the substitution of
securities for any monies withheld by the City to ensure performance under the
Contract. At the request and expense of the Contractor, securities equivalent to the
amount withheld shall be deposited with the City, or with a state or federally chartered
bank in California as the escrow agent, and thereafter the City shall then pay such
monies to the Contractor as they come due. Upon satisfactory completion of the
Contract, the securities shall be returned to the Contractor. For purposes of this Section
and Section 22300 of the Public Contract Code, the term "satisfactory completion of the
contract" shall mean the time the City has issued written final acceptance of the Work
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and filed a Notice of Completion as required by law and provisions of this Contract. The
Contractor shall be the beneficial owner of any securities substituted for monies
withheld and shall receive any interest thereon. The escrow agreement used for the
purposes of this Section shall be in the form provided by the City.
3.8.6 Payment to Subcontractors Contractor shall pay all subcontractors
for and on account of work performed by such subcontractors in accordance with the
terms of their respective subcontracts and as provided for in Section 10262 of the
California Public Contract Code. Such payments to subcontractors shall be based on
the measurements and estimates made and progress payments provided to Contractor
pursuant to this Contract.
3.8.7 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.
3.9 Termination This Contract may be terminated by the City at any time 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 the 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.
3.10 Completion of Work When the Contractor determines that it has
completed the Work required herein, Contractor shall so notify City in writing and shall
furnish all labor and material releases required by this Contract. City shall thereupon
inspect the Work. If the Work is not acceptable to the City, the City shall indicate to
Contractor in writing the specific portions or items of Work which are unsatisfactory or
incomplete. Once Contractor determines that it has completed the incomplete or
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unsatisfactory Work, Contractor may request a re- inspection 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.
3.11 City's Representative The City hereby designates Don Penman,
Assistant City Manager /Development Services Director, or his designee, to act as its
representative for the performance of this Contract ( "City's Representative "). City's
Representative shall have the power to act on behalf of the City for all purposes under
this Contract. Contractor shall not accept direction or orders from any person other than
the City's Representative or his or here designee.
3.12 Contractor's Representative Before starting the Work, Contractor shall
submit in writing the name, qualifications and experience of its proposed representative
who shall be subject to the review and approval of the City ( "Contractor's
Representative "). Following approval by the City, the Contractor's Representative shall
have full authority to represent and act on behalf of the Contractor for all purposes
under this Contract. The Contractor's Representative shall supervise and direct the
Work, using his best skill and attention, and shall be responsible for all construction
means, methods, techniques, sequences and procedures and for the satisfactory
coordination of all portions of the Work under this Contract. Contractor's Representative
shall devote full time to the Project and either he or his designee, who shall be
acceptable to the City, shall be present at the Work site at all times that any Work is in
progress and at any time that any employee or subcontractor of Contractor is present at
the Work site. Arrangements for responsible supervision, acceptable to the City, shall
be made for emergency Work which may be required. Should Contractor desire to
change its Contractor's Representative, Contractor shall provide the information
specified above and obtain the City's written approval.
3.13 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.
3.14 Loss and Damage 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. However, Contractor shall be responsible for damage proximately
caused by Acts of God, within the meaning of Section 4150 of the California
Government Code, only to the extent of five percent (5 %) of the Total Contract Price as
specified herein. In the event of damage proximately caused by "Acts of God," the City
may terminate this Contract upon three (3) days advanced written notice.
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3.15 Indemnification Contractor shall defend, indemnify and hold the City, its
officials, officers, employees, volunteers and agents free and harmless from any and all
claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in
law or equity, to property or persons, including wrongful death, in any manner arising
out of or incident to any acts, omissions or willful misconduct of Contractor, its officials,
officers, employees, agents, consultants and contractors arising out of or in connection
with the performance of the Work or this Contract, including without limitation the
payment of all consequential damages and attorneys fees and other related costs and
expenses. Contractor shall defend, at Contractor's own cost, expense and risk, any and
all such aforesaid suits, actions or other legal proceedings of every kind that may be
brought or instituted against City, its directors, officials officers, employees, agents or
volunteers. Contractor shall pay and satisfy any judgment, award or decree that may be
rendered against City or its directors, officials, officers, employees, agents or
volunteers, in any such suit, action or other legal proceeding. Contractor shall
reimburse City and its directors, officials, officers, employees, agents and /or volunteers,
for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided.
3.16 Insurance
3.16.1 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.
3.16.2 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 the Contractor, its agents, representatives,
employees or subcontractors. Contractor shall also require all of its subcontractors to
procure and maintain the same insurance for the duration of the Contract. Such
insurance shall meet at least the following minimum levels of coverage:
3.16.2.1 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 0001); (2)
Automobile Liability: Insurance Services Office Business Auto Coverage form number
CA 0001, code 1 (any auto); and (3) Workers' Compensation and Employers' Liability:
Workers' Compensation insurance as required by the State of California and Employer's
Liability Insurance.
3.16.2.2 Minimum Limits of Insurance Contractor shall
maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily
injury, personal injury and property damage. If Commercial General Liability Insurance
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or other form with a general aggregate limit is used, either the general aggregate limit
shall apply separately to this Contract /location or the general aggregate limit shall be
twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for
bodily injury and property damage; and (3) Workers' Compensation and Employer's
Liability: Workers' compensation limits as required by the Labor Code of the State of
California. Employers Liability limits of $1,000,000 per accident for bodily injury or
d isease.
3.16.3 Insurance Endorsements The insurance policies shall
contain the following provisions, or Contractor shall provide endorsements on forms
supplied or approved by the City to add the following provisions to the insurance
policies:
3.16.3.1 General Liability (1) The City, its directors, officials,
officers, employees, agents and volunteers shall be covered as additional insureds with
respect to the Work or operations performed by or on behalf of the Contractor, including
materials, parts or equipment furnished in connection with such work; and (2) the
insurance coverage shall be primary insurance as respects the City, its directors,
officials, officers, employees, agents and volunteers, or if excess, shall stand in an
unbroken chain of coverage excess of the Contractor's scheduled underlying coverage.
Any insurance or self- insurance maintained by the City, its directors, officials, officers,
employees, agents and volunteers shall be excess of the Contractor's insurance and
shall not be called upon to contribute with it.
3.16.3.2 Automobile Liability (1) The City, its directors,
officials, officers, employees, agents and volunteers shall be covered as additional
insureds with respect to the ownership, operation, maintenance, use, loading or
unloading of any auto owned, leased, hired or borrowed by the Contractor or for which
the Contractor is responsible; and (2) the insurance coverage shall be primary
insurance as respects the City, its directors, officials, officers, employees, agents and
volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the
Contractor's scheduled underlying coverage. Any insurance or self- insurance
maintained by the City, its directors, officials, officers, employees, agents and
volunteers shall be excess of the Contractor's insurance and shall not be called upon to
contribute with it in any way.
3.16.3.3 Workers' Compensation and Employers Liability
Coverage The insurer shall agree to waive all rights of subrogation against the City, its
directors, officials, officers, employees, agents and volunteers for losses paid under the
terms of the insurance policy which arise from work performed by the Contractor.
3.16.3.4 All Coveraqes 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
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affect coverage provided to the City, its directors, officials, officers, employees, agents
and volunteers.
3.16.4 Builders' /All Risk Policy Requirements [Intentionally
Omitted]
3.16.5 Separation of Insureds: No Special Limitations All
insurance required by this Section shall contain standard separation of insureds
provisions. In addition, such insurance shall not contain any special limitations on the
scope of protection afforded to the City, its directors, officials, officers, employees,
agents and volunteers.
3.16.6 Professional Liability Insurance [Intentionally Omitted]
3.16.7 Deductibles and Self- Insurance Retentions Any deductibles
or self- insured retentions must be declared to and approved by the City. Contractor
shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or
eliminate such deductibles or self- insured retentions as respects the City, its directors,
officials, officers, employees, agents and volunteers; or (2) the Contractor shall procure
a bond guaranteeing payment of losses and related investigation costs, claims and
administrative and defense expenses.
3.16.8 Acceptability of Insurers Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in
California, and satisfactory to the City.
3.16.9 Verification of Coveraqe 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.
3.16.10 Subcontractors All subcontractors shall meet the requirements of
this Section before commencing Work. In addition, Contractor shall include all
subcontractors as insureds under its policies or shall furnish separate certificates and
endorsements for each subcontractor. All coverages for subcontractors shall be subject
to all of the requirements stated herein.
3.17 Bond Requirements
3.17.1 Payment Bond If required by law or otherwise specifically
requested by City in Exhibit "B" attached hereto and incorporated herein by reference,
Contractor shall execute and provide to City concurrently with this Contract a Payment
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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.
3.17.2 Performance Bond If specifically requested by City in Exhibit "B"
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.
3.17.3 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,
the 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. To the extent available, the bonds shall further provide that no change or
alteration of the Contract (including, without limitation, an increase in the Total Contract
Price, as referred to above), extensions of time, or modifications of the time, terms, or
conditions of payment to the Contractor, will release the surety. If the Contractor fails to
furnish any required bond, the City may terminate the Contract for cause.
3.17.4 Surety Qualifications Only bonds executed by an admitted surety
insurer, as defined in California Code of Civil Procedure Section 995.120, shall be
accepted. The surety must be a California- admitted surety with a current A.M. Best's
rating no less than A:VIII and satisfactory to the City. 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.
3.18 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, the Contractor shall at all times be
in compliance with all applicable local, state and federal laws, rules and regulations, and
shall exercise all necessary precautions for the safety of employees appropriate to the
nature of the Work and the conditions under which the Work is to be performed. Safety
precautions as applicable shall include, but shall not be limited to, adequate life
protection and life saving equipment; adequate illumination for underground and night
operations; instructions in accident prevention for all employees, such as machinery
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guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space
procedures, trenching and shoring, fall protection and other safety devices, equipment
and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and adequate facilities for the proper inspection and maintenance of all safety
measures. Furthermore, Contractor shall prominently display the names and telephone
numbers of at least two medical doctors practicing in the vicinity of the Project, as well
as the telephone number of the local ambulance service, adjacent to all telephones at
the Project site.
3.19 Warranty Contractor warrants all Work under the Contract (which for
purposes of this Section shall be deemed to include unauthorized work which has not
been removed and any non - conforming materials incorporated into the Work) to be of
good quality and free from any defective or faulty material and workmanship.
Contractor agrees that for a period of one year (or the period of time specified
elsewhere in the Contract or in any guarantee or warranty provided by any
manufacturer or supplier of equipment or materials incorporated into the Work,
whichever is later) after the date of final acceptance, Contractor shall within ten (10)
days after being notified in writing by the City of any defect in the Work or
non - conformance of the Work to the Contract, commence and prosecute with due
diligence all Work necessary to fulfill the terms of the warranty at its sole cost and
expense. Contractor shall act sooner as requested by the City in response to an
emergency. In addition, Contractor shall, at its sole cost and expense, repair and
replace any portions of the Work (or work of other contractors) damaged by its defective
Work or which becomes damaged in the course of repairing or replacing defective
Work. For any Work so corrected, Contractor's obligation hereunder to correct defective
Work shall be reinstated for an additional one -year period, commencing with the date of
acceptance of such corrected Work. Contractor shall perform such tests as the City
may require to verify that any corrective actions, including, without limitation, redesign,
repairs, and replacements comply with the requirements of the Contract. All costs
associated with such corrective actions and testing, including the removal, replacement,
and reinstitution of equipment and materials necessary to gain access, shall be the sole
responsibility of the Contractor. All warranties and guarantees of subcontractors,
suppliers and manufacturers with respect to any portion of the 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.
3.20 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
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affecting the performance of the Contract or the Work, including all Cal /OSHA
requirements, and shall give all notices required by law. Contractor shall be liable for all
violations of such laws and regulations in connection with Work. If the Contractor
observes that the drawings or specifications are at variance with any law, rule or
regulation, it shall promptly notify the City in writing. Any necessary changes shall be
made by written change order. If the Contractor performs any work knowing it to be
contrary to such laws, rules and regulations and without giving written notice to the City,
the Contractor shall be solely responsible for all costs arising there from. Contractor
shall defend, indemnify and hold City, its officials, directors, officers, employees and
agents free and harmless, pursuant to the indemnification provisions of this Contract,
from any claim or liability arising out of any failure or alleged failure to comply with such
laws, rules or regulations.
3.21 Permits and Licenses Contractor shall be responsible for securing City
permits and licenses necessary to perform the Work described herein, including, but not
limited to, a City Business License. While Contractor will not be charged a fee for any
City permits, Contractor shall pay the City's applicable business license fee.
3.22 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, a registered civil or structural engineer shall prepare the plan.
3.23 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.
3.24 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
R V PUB \NGS \557201 12
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.
3.25 Prevailing Wages Contractor is aware of the requirements of California
Labor Code Section 1770 et sec.., which requires the payment of prevailing wage rates
and the performance of other requirements on "public works contracts." If this is a
"public works contract" pursuant to the California Labor Code and if the Total Contract
Price is $1,000 or more, Contractor agrees to pay such prevailing rates to each
workman needed to execute the Work and further agrees to comply with the penalty
provisions of Section 1775 of the California Labor Code in the event of its failure to pay
prevailing rates. Copies of the prevailing rate of per diem wages for each craft,
classification or type of worker needed to execute this Contract shall be made available
to interested parties upon request, and shall be posted at the Project site. Contractor
agrees to defend, indemnify and hold City, its officials, directors, officers, employees,
agents and volunteers 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 these provisions of the California Labor Code.
3.26 Apprenticeable Crafts When 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.
3.27 Hours of Work Contractor is advised that eight (8) hours labor constitutes
a legal day's work. Pursuant to Section 1813 of the California Labor Code, Contractor
shall forfeit a penalty of $25.00 per worker for each day that each worker is permitted to
work more than eight (8) hours in any one calendar day and forty (40) hours in any one
calendar week, except when payment for overtime is made at not less than one and
one -half (1 -1/2) times the basic rate for that worker.
3.28 Payroll Records In accordance with the requirements of California Labor
Code Section 1776, Contractor shall keep accurate payroll records which are either on
forms provided by the Division of Labor Standards Enforcement or which contain the
same information required by such forms. Responsibility for compliance with California
Labor Code Section 1776 shall rest solely with Contractor, and Contractor shall make all
such records available for inspection at all reasonable hours.
3.29 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
RVPUB\NGS \557201 13
"C" and incorporated herein by reference, shall be executed simultaneously with this
Contract.
3.30 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.
3.31 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 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.
3.32 Anti -Trust Claims This provision shall be operative if this Contract is
applicable to California Public Contract Code Section 7103.5. In entering into this
Contract to supply goods, services or materials, the Contractor hereby offers and
agrees to assign to the City all rights, title, and interest in and to all causes of action it
may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the
Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of
the Business and Professions Code) arising from purchases of goods, services, or
materials pursuant to the Contract. This assignment shall be made and become
effective at the time the City tender final payment to the Contractor, without further
acknowledgment by the Parties.
3.33 Notices All notices hereunder and communications regarding inter-
pretation 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:
City
City of Arcadia
P.O. Box 60021
Arcadia, CA 91066 -6021
Attn: Philip A. Wray
City Engineer
Contractor
EGN Construction, Inc.
P.O. Box 367
Upland CA 91785
Attn: E. G. Norlund
President
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.
3.34 Entire Contract: Modification This Contract contains the entire agreement
of the Parties with respect to the subject matter hereof, and supersedes all prior
RVPUB \NGS\557201 14
negotiations, understandings or agreements. This Contract may only be modified by a
writing signed by both Parties.
3.35 Time of Essence Time is of the essence in the performance of this
Contract.
3.36 Assiqnment 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.
3.37 Governing Law This Contract shall be governed by the laws of the State
of California. Venue shall be in San Bernardino County.
3.38 Counterparts This Contract may be executed in counterparts, each of
which shall constitute an original.
3.39 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.
3.40 Attorneys' Fees If either Party commences an action against the other
Party, either legal, administrative or otherwise, arising out of or in connection with this
Contract, the prevailing Party in such action shall be entitled to have and recover from
the losing Party reasonable attorneys' fees and all other costs of such action.
3.41 Claims of $375,000 or Less Notwithstanding any other provision herein,
claims of $375,000 or less shall be resolved pursuant to the alternative dispute
resolution procedures set forth in California Public Contract Code §§ 20104, et seq.
3.42 Prohibited Interests
3.42.1 Solicitation Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee
working solely for Contractor, to solicit or secure this Contract. Further, Contractor
warrants that it has not paid nor has it agreed to pay any company or person, other than
a bona fide employee working solely for Contractor, any fee, commission, percentage,
brokerage fee, gift or other consideration contingent upon or resulting from the award or
making of this Contract. For breach or violation of this warranty, City shall have the
right to terminate this Contract without liability.
3.42.2 Conflict of Interest For the term of this Contract, no member,
officer or employee of City, during the term of his or her service with City, shall have any
RVPUB \NGS \557201 15
direct interest in this Contract, or obtain any present or anticipated material benefit
arising there from.
3.43 Certification of License Contractor certifies that as of the date of
execution of this Contract, Contractor has a current contractor's license of the
classification indicated below under Contractor's signature.
IN WITNESS WHEREOF, each of the Parties has caused this Contract to be
executed on the day and year first above written.
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CITY OF ARCADIA
William R. Kelly
City Manager
Dated: &A
EGN CONSTRUCTION, INC.
By: 4 ,_
E. G. Norlund
President
. - -� A
2004_ - -j f V 19
Classification of Contractor's
License 3 9 V le)
Attest:
\ kTdwuz�
Vida Tolman
Chief Deputy City Clerk /Records Manager
Approved as to form: Concur:
Stephen P. Deitsch Don Penman, Assistant City Manager/
City Attorney Development Services Director
RVPUB \NGS \557201 17