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HomeMy WebLinkAboutItem 10a - First Avenue Arterial Pavement Rehabilitation Project STAFF REPORT DEVELOPMENT SERVICES DEPARTMENT DATE: May 5, 2026 TO: Honorable Mayor and City Council FROM: Lisa Flores, Development Services Director Kevin Merrill, City Engineer By: Johnathan Doojphibulpol, Principal Civil Engineer SUBJECT: RESOLUTION NO. 7682 AMENDING THE FISCAL YEAR 2025-26 CAPITAL IMPROVEMENT PROGRAM BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR THE FIRST AVENUE ARTERIAL PAVEMENT REHABILITATION PROJECT IN THE AMOUNT OF $500,000, OFFSET BY A REDUCTION IN THE PROPOSITION C FUND; AND APPROVE A CONTRACT WITH ONYX PAVING COMPANY, INC. FOR THE FIRST AVENUE ARTERIAL PAVEMENT REHABILITATION PROJECT IN THE AMOUNT OF $1,428,000, WITH A 10% CONTINGENCY CEQA: Exempt Recommendation: Adopt and Approve SUMMARY As part of Arcadia’s ongoing Pavement Management Program, the City annually appropriates Proposition C (“Prop C”) funding for arterial street rehabilitation projects. For the Fiscal Year 2022-23 Capital Improvement Program (“CIP”), the City Council appropriated $2 million for the rehabilitation of First Avenue, from Huntington Drive to Duarte Road, and Second Avenue, from Huntington Drive to Duarte Road. The First Avenue and Second Avenue Arterial Pavement Rehabilitation projects were separated into two distinct efforts, with the Second Avenue project completed and accepted by the City Council at its April 7, 2026, meeting. The First Avenue Arterial Pavement Rehabilitation Project was advertised for bids on March 5, 2026, and bids were opened on March 26, 2026. Six bids were received, and Onyx Paving Company, Inc. was the lowest responsible bidder with a bid of $1,428,000. The difference between the low bid amount, plus the standard 10% First Avenue Arterial Pavement Rehabilitation Project May 5, 2026 Page 2 of 5 contingency, and the current project balance of $1,106,165, is approximately $500,000. It is recommended that the City Council adopt Resolution No. 7682 amending the Fiscal Year 2025-26 CIP Budget, authorizing a supplemental budget appropriation for the First Avenue Arterial Pavement Rehabilitation Project in the amount of $500,000, offset by a reduction in Prop C funds; and authorize and direct the City Manager to execute a contract with Onyx Paving Company, Inc. for the First Avenue Arterial Pavement Rehabilitation Project in the amount of $1,428,000, with a 10% contingency. BACKGROUND The City annually appropriates Prop C funding for arterial street rehabilitation projects. A requirement for local jurisdictions to receive Federal, State, and County funding is to maintain an updated Pavement Management Program (“PMP”). Every few years, the City’s Pavement Management Program analyzes existing street pavement conditions through a full survey and rating of all roadways. The Pavement Condition Index (“PCI”) is used to indicate the general condition of pavement sections. The most recent PCI survey was conducted in the first quarter of 2021. Although the PCI averages of First Avenue and Second Avenue were in “fair” condition, the survey data identified First Avenue as the highest priority secondary collector, and Second Avenue as the highest priority primary collector, when compared to similar streets that have not already been planned for or recently completed in the City’s Capital Improvement Program. In February 2023, HR Green Pacific, Inc., under the On-Call Engineering Design Services Contract, was tasked with providing the City with a design package that included plans, specifications, and estimates for the First Avenue and Second Avenue Arterial Pavement Rehabilitation. The proposed improvements include grinding and overlaying asphalt pavement, re-striping pavement markings, cutting new traffic loops, and removing and replacing concrete curb and gutter, sidewalk, driveway aprons, and Americans with Disabilities Act (“ADA”) compliant curb ramps. The design package was completed in July 2024. In it, First Avenue, from California Street to Duarte Road, was planned to be narrowed with curb extensions at the First Avenue Arterial Pavement Rehabilitation Project May 5, 2026 Page 3 of 5 intersections; however, bike lanes, parallel parking, and two-way left-turn lanes would remain along the segment. In addition, the existing north-south stop signs at Diamond Street, which have been repeatedly struck by vehicles over the years, would be moved out of the center median of the street and placed behind new curb extensions on First Avenue. Over the years, the City has received requests for additional parking from businesses along the First Avenue corridor. The City contracted with Willdan Engineering to perform a traffic analysis for First Avenue, from California Street to Duarte Road, mostly analyzing the potential for more parking spaces and additional stop signs. The analysis showed that parking spaces could be gained on some blocks using a “chicane” design that provides diagonal parking on one side of the street, as shown in the image below and in Attachment No. 3. These locations are: • East side of First Avenue between California Street and Diamond Street • West side of First Avenue between El Dorado Street and Fano Street To provide safety improvements and additional traffic calming measures for the new design, new stop signs will be placed at El Dorado Street and Fano Street. The construction plans were adjusted to include the recommended changes from the study, and a bid package was prepared. First Avenue Arterial Pavement Rehabilitation Project May 5, 2026 Page 4 of 5 DISCUSSION The project was advertised for bids in March, and bids were opened on March 26, 2026. Bids were received from six (6) prospective contractors with the following results: NAME AMOUNT Onyx Paving Company, Inc. $1,428,000 Sequel Contractors, Inc. $1,495,820 Gentry Brothers Inc. $1,517,755 Hardy & Harper, Inc. $1,650,000 All American Asphalt $1,718,118 Excel Paving $1,937,752 After reviewing the bid documents, Onyx Paving Company, Inc. (“Onyx Paving”) was determined to be the lowest responsible bidder. Although the price is higher than the remaining budget, constructing the project now would be more cost effective than delaying the project. Construction must occur in the summertime due to the proximity to First Avenue Middle School. Delaying the project one year would surely increase the costs of construction and require even more funds. Onyx Paving has previously been awarded City projects and has performed with favorable results. Onyx Paving is satisfied with their bid and is ready to move forward with the project. ENVIRONMENTAL ANALYSIS Under the California Environmental Quality Act (“CEQA”) Guidelines, this project is categorically exempt per Section 15301 as a Class 1, Existing Facility, and Section 15302 as a Class 2, Replacement or Reconstruction. FISCAL IMPACT The project was budgeted in the Fiscal Year 2022-23 Capital Improvement Program for a total of $2 million in Proposition C funds. After expenses for the design contract with HR Green Pacific, Inc., construction contract of the Second Avenue Arterial Pavement Rehabilitation Project, and various administrative costs, the current project balance is $1,106,163.97. The low bid plus a 10% contingency would require a project budget balance of $1,570,800 to complete the work. First Avenue Arterial Pavement Rehabilitation Project May 5, 2026 Page 5 of 5 To cover the remaining costs, an additional appropriation of $500,000 in Proposition C funds is needed to cover the shortfall. The Proposition C fund has a sufficient unencumbered balance of approximately $1 million, and must be used for street and transportation projects such as this. The additional appropriation for the Project will be added to the Fiscal Year 2025-26 CIP Budget, bringing the total project budget to $1,606,163.97, which is sufficient to cover the bid and a 10% contingency. RECOMMENDATION It is recommended that the City Council find the project categorically exempt pursuant to the requirements of the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7682 amending the Fiscal Year 2025-26 Capital Improvement Program Budget, authorizing a supplemental budget appropriation for the First Avenue Arterial Pavement Rehabilitation Project in the amount of $500,000, offset by the reduction in the Proposition C Fund; and authorize and direct the City Manager to execute a contract with Onyx Paving Company, Inc. for the First Avenue Arterial Pavement Rehabilitation Project in the amount of $1,428,000, with a 10% contingency. Attachment No 1: Resolution No. 7682 Attachment No 2: Proposed Contract Attachment No 3: New Striping Layout 1 RESOLUTION NO. 7682 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 FIRST AVENUE ARTERIAL PAVEMENT REHABILITATION PROJECT IN THE AMOUNT OF $500,000, OFFSET BY A REDUCTION IN THE PROPOSITION C FUND WHEREAS, as part of the Fiscal Year 2022-23 CIP Budget, $2,000,000 of Proposition C funds were budgeted for the Arterial Pavement Rehabilitation Project –First Avenue and Second Avenue from Huntington Drive to Duarte Avenue, and WHEREAS, as of May 5, 2026, the remaining budget for the First Avenue Arterial Pavement Rehabilitation Project is $1,106,163.97. WHEREAS, on March 26, 2026, bids were received from six prospective contractors with the low bid being from Onyx Paving Inc. in the amount of $1,428,000.00, and WHEREAS, funding is determined to be available in the Proposition C fund balance in the amount of $500,000, find the project categorically exempt pursuant to the requirements of the California Environmental Quality Act (“CEQA”), and WHEREAS, the City Manager has certified that there are sufficient reserves available in the Proposition C fund for appropriation. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES FIND, DETERMINE AND RESOLVE AS FOLLOWS: Attachment No. 1 SECTION 1. Five Hundred Thousand Dollars ($500,000) is hereby appropriated in the First Avenue Arterial Pavement Rehabilitation Project, offset with a reduction in the Proposition C fund balance in the amount of $500,000. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this 5th day of May, 2026. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: Michael Maurer City Attorney 2 CONTRACT This CONTRACT, No. ________ is made and entered into this ____ day of May, 2026, by and between City of Arcadia, sometimes hereinafter called “City,” and Onyx Paving Company, Inc. "sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: a.SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: FIRST AVENUE ARTERIAL PAVEMENT REHABILITATION The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. b.TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 60 working days from the commencement date stated in the Notice to Proceed. Due to proximity to First Avenue Middle School, special considerations for this project are as follows: i.Commencement of work between California Street and El Dorado Street cannot begin until JUNE 4, 2026. ii.Completion of work between Huntington Drive and El Dorado Street shall be before AUGUST 18, 2026. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. c.CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of One Million Four Hundred Twenty Eight Thousand Dollars ($1,428,000). Payment shall be made as set forth in the General Conditions. d.LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum set forth in Section 00 73 13, Article 1.11 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents. e.COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Attachment No. 2 Notice Inviting Bids Instructions to Bidders Bid Form Bid Bond Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor Registration Certification Performance Bond Payment (Labor and Materials) Bond General Conditions Special Conditions Technical Specifications Addenda Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Applicable Local Agency Standards and Specifications, as last revised Approved and fully executed change orders Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties. f. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. g. INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions. h. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Administrative Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CITY OF ARCADIA ONYX PAVING COMPANY, INC. By: _____ By: Dominic Lazzaretto City Manager Its: Printed Name: ATTEST: By: _____________________________ By: Its: _____________________________ City Clerk Printed Name:_______________________ APPROVED AS TO FORM: By: City Attorney (CONTRACTOR’S SIGNATURE MUST BE NOTARIZED AND CORPORATE SEAL AFFIXED, IF APPLICABLE) END OF CONTRACT 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 PAYMENT BOND (LABOR AND MATERIALS) KNOW ALL MEN BY THESE PRESENTS That WHEREAS, the City of Arcadia (hereinafter designated as the “City”), by action taken or a resolution passed May ____, 2026, has awarded to ONYX PAVING COMPANY, INC., hereinafter designated as the “Principal,” a contract for the work described as follows: Contract No.____________ (the “Project”); 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 ______________ Dollars ($___________) 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 Civil Code Section 9100, 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 Revenue and Taxation Code Section 18663, 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, and also, in case suit is brought upon this bond, all litigation expenses incurred by the City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses. This bond shall inure to the benefit of any of the persons named in Civil Code Section 9100 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 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 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 Civil Code Section 9100, 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, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code. By their signatures hereunder, Surety and Principal hereby confirm under penalty of perjury that surety is an admitted surety insurer authorized to do business in the State of California. 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 (Attach Attorney-in-Fact Certificate) Title 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 NOTE: This acknowledgment is to be completed for Contractor/Principal. 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 NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached. END OF PAYMENT BOND PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Arcadia, (hereinafter referred to as “City”) has awarded to ONYX PAVING COMPANY, INC., (hereinafter referred to as the “Contractor”) an agreement for 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 ___________________________ DOLLARS, ($____________), 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 (1) year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officials, officers, employees, and authorized volunteers, 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 part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney’s fees, incurred by City in enforcing such obligation. 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. 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: i. Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or ii. 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. iii. Permit the City to complete the Project in any manner consistent with California 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. By their signatures hereunder, Surety and Contractor hereby confirm under penalty of perjury that surety is an admitted surety insurer authorized to do business in the State of California. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 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 (Attach Attorney-in-Fact Certificate) Title The rate of premium on this bond is ____________ per thousand. The total amount of premium charges is $_______________________________. (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 to local representatives of the bonding company must be attached hereto in addition to appropriate Notarial Acknowledgements of Execution by both Contractor and Surety. 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 NOTE: This acknowledgment is to be completed for Contractor/Principal. 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 NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of Attorney to local representatives of the bonding company must also be attached. END OF PERFORMANCE BOND Insert W9 form on PDF copy. +00 23+00 24+00 25+00 26+00 27+00 31+00 32+00 33+00 34+00 35+00 FANO ST.EL DORADO ST. DIAMOND ST. FANO ST.EL DORADO ST. DIAMOND ST.FIRST AVENUE CALIFORNIA ST. CALIFORNIA ST. Attachment No. 3