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2014-08-19 City Council Agenda PacketCalifornia Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda items, including attachments, which are presented to the City Council in open session are available for public inspection. They may be inspected during regular business hours in the City Clerk's Office at Vernon City Hall, 4305 Santa Fe Avenue; Vernon, California 90058, and on the City’s website at www.cityofvernon.org. No prior appointment is required. Americans with Disabilities Act (“ADA”): In compliance with the ADA, if you need special assistance to participate in a city meeting, please contact the City Clerk’s office at (323) 583-8811. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Agenda City of Vernon Regular City Council Meeting Tuesday, August 19, 2014, 9:00 a.m. Council Chamber 4305 Santa Fe Avenue Vernon, California W. Michael McCormick, Mayor William J. Davis, Mayor Pro-Tem Richard J. Maisano, Council Member Michael Ybarra, Council Member Luz Martinez, Council Member CALL TO ORDER & FLAG SALUTE CHANGES TO THE AGENDA PUBLIC COMMENT - At this time the public is encouraged to address the City Council on any matter that is within the subject matter jurisdiction of the City Council. The public will also be given a chance to comment on matters which are on the posted agenda during City Council deliberation on those specific matters. PRESENTATIONS 1. Personnel Matters - Service Pin Awards July 2014 Anniversary Employee Name Job Title Years 1. Sergio Canales Assistant Planner 15 2. Jeremy Cross Police Officer 10 3. Paul Hallenberg Firefighter/Paramedic 10 Regular City Council Meeting Agenda August 19, 2014 Page 2 of 7 4. Corey Hernandez Firefighter 10 5. Jonathan Sudduth Firefighter/Paramedic 10 6. Jonathan Van Oeffelen Firefighter 10 7. Andrei Yermakov Information Technology Manager 5 2. Present certificates of appreciation to former members of the Ad Hoc Advisory Committee for Electric Rates and the Ad Hoc Advisory Committee for Business Development in recognition of their service to the City of Vernon. 3. Presentation by Independent Reform Monitor John Van De Kamp on his July 31, 2014 Report on the City of Vernon. 4. Financial Update Presentation by the Finance Director on 2014 Fiscal Year End Financial results and investment and policy discussion. CONSENT CALENDAR - All matters listed on the Consent Calendar are to be approved with one motion. Items may be removed from the Consent Calendar by any member of the Council. Those items removed will be considered immediately after the Consent Calendar. Claims Against the City – Received and Filed 5. None. Minutes – To be Received and Filed 6. Minutes of the Regular City Council Meeting held August 5, 2014. Warrant Registers 7. Ratification of City Warrant Register No. 1404 to record voided Check No. 344667 in the amount of $3,059.00. 8. Ratification of Light & Power Warrant Register No. 362 to record voided Check No. 510658 in the amount of $554.63. 9. Approval of City Payroll Warrant Register No. 698, totaling $2,758,329.39, which covers the period of July 1, through July 31, 2014 and consists of the following: a. Ratification of direct deposits, checks and taxes totaling $2,082,448.59; and b. Checks and electronic fund transfers totaling $675,880.80. 10. Approval of City Warrant Register No. 1406, totaling $1,751,854.25, which covers the period of July 29, through August 11, 2014, and consists of the following: Regular City Council Meeting Agenda August 19, 2014 Page 3 of 7 a. Ratification of wire transfers totaling $1,375,213.49; and b. Ratification of the issuance of early checks totaling $170,445.75; and c. Authorization to issue pending checks totaling $206,195.01. 11. Approval of Light & Power Warrant Register No. 371, totaling $1,182,383.66, which covers the period of July 29, through August 11, 2014, and consists of the following: a. Ratification of wire transfers totaling $1,058,352.20; and b. Ratification of the issuance of early checks totaling $123,330.42; and c. Authorization to issue pending checks totaling $701.04. 12. Approval of Gas Warrant Register No.159, totaling $253,112.13, which covers the period of July 29, through August 11, 2014, and consists of the following: a. Ratification of wire transfers totaling $233,618.54; and b. Ratification of the issuance of early checks totaling $19,307.89; and c. Authorization to issue pending checks totaling $185.70. City Administration Department 13. A Proclamation of the City Council of the City of Vernon declaring the month of September 2014 as “Childhood Cancer Awareness Month”. Fire Department 14. Activity Report for the period of July 16, through July 31, 2014, to be received and filed. Health and Environmental Control Department 15. July 2014 Monthly Report, to be received and filed. Human Resources Department 16. A Resolution of the City Council of the City of Vernon approving the industrial disability retirement application of Steve Wiles, a local safety member formerly employed by the City Of Vernon (Government Code Sections 21154 and 21156) Recommendation: (1) Find that approving an Industrial Disability Retirement Application is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Re-consider the previous decision (Resolution No. 2014-04) denying an Industrial Disability Retirement Application for Steve Wiles based on lack of medical evidence, and based on a re- evaluation of this case, adopt the resolution approving Mr. Wiles’ Industrial Disability Retirement Application as the findings and determinations pertaining to Mr. Wiles’ Application, pursuant to Government Code section 21156, based on further medical evidence that Mr. Wiles Regular City Council Meeting Agenda August 19, 2014 Page 4 of 7 is substantially incapacitated from the performance of his usual and customary duties as a Police Officer for the City of Vernon. Gas and Electric Department 17. Authorization to execute the Base Contract with ConocoPhillips for Sale and Purchase of Natural Gas (the “NAESB Contract”). Recommendation: (1) Find that the approval requested in the staff report is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15301(b), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Authorize the Director of Gas & Electric to execute the North American Energy Standards Board (“NAESB”) contract by and between the City of Vernon (“City”) and ConocoPhillips in substantially the same form as attached to the staff report, for the purpose of buying and selling natural gas to or from ConocoPhillips, in compliance with the general terms established in the agreement. It is further recommended that the City Council find that, pursuant to Vernon Municipal Code § 2.17.12(A)(6), competitive bidding is not required because these are contracts for gas and/or electrical power for the city’s power utility, and that it would be commercially unreasonable to procure the gas or electricity through standard bidding or request for proposal procedures. Police Department 18. Activity Log and Statistical Summary of Arrest and Activities for the period of July 16, through July 31, 2014, to be received and filed. 19. Authorize the donation of unused First Aid Responder Kits to the Los Angeles School Police Department (LASPD) Explorers Program. Recommendation: (1) Find that approval of the proposed donation to the Los Angeles School Police Department (“LASPD”) Explorers Program is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Authorize the donation of unused First Aid Responder Kits to the LASPD Explorers Program that will be used for educational and training purposes. It is further recommended that the City Council find that the donation serves a municipal purpose. Public Works, Water and Development Services Department 20. Building Department Report for the month of July 2014, to be received and filed. / / / / / / Regular City Council Meeting Agenda August 19, 2014 Page 5 of 7 21. Approve Encroachment License Agreement No. 417 for Univar USA, Inc. Recommendation: (1) Find that the approval of the Encroachment License Agreement is exempt under the California Environmental Quality Act (“CEQA”), in accordance with (a) CEQA Guidelines Section 15061 (b)(3), the general rule that CEQA only applies to projects, which have the potential for causing a significant effect on the environment. Also find that this project is categorically exempt under CEQA Guidelines Section 15308, “Actions by Regulatory Agencies for the Protection of the Environment”; Class 8 consists of actions taken by Regulatory Agencies, as authorized by state of local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment; and (2) Approve Encroachment License Agreement No. 417 between the City of Vernon and Univar USA, Inc. in substantially the same form as submitted with the Staff Report. NEW BUSINESS Police Department 22. Authorization to approve the Drug Enforcement Administration Agreement. Recommendation: (1) Find that the proposed agreement with the Drug Enforcement Administration for continued participation in the Southwest Border Initiative (“SWBI”) taskforce as detailed in the staff report is exempt under the California Environmental Quality Act (“CEQA”). In accordance with Section 15061(b) (3), the general rule is that CEQA only applies to projects that may have an effect on the environment; and (2) Authorize the Police Chief to execute an agreement with the Drug Enforcement Administration (“DEA”), in substantially the same form as submitted with the Staff Report, for continued participation in the Southwest Border Initiative taskforce. 23. Authorize the Police Chief and City Administrator to execute the Federal Asset Forfeiture Equitable Share Agreement and Annual Certification Report on behalf of the City of Vernon. Recommendation: (1) Find that granting authority to execute and submit the agreement and related documents at issue in the staff report constitute administrative activities that do not constitute a “project” under the California Environmental Quality Act (“CEQA”), and would also be exempt in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Authorize the Police Chief and City Administrator to execute the Federal Equitable Share Agreement and Annual Certification Report on behalf of the City of Vernon, in substantially the same form as submitted in the Staff Report. Regular City Council Meeting Agenda August 19, 2014 Page 6 of 7 Public Works, Water, and Development Services Department 24. Authorization to permit Meta Housing to record the Maintenance Covenant & Agreement for City owned property located at 4675 52nd Drive. Recommendation: (1) Find that authorizing the recordation of a Maintenance Covenant & Agreement by META Housing is exempt from the California Environmental Quality Act (“CEQA”) in accordance with (a) CEQA Guidelines section 15061 (b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (b) Section 15307, because it is an action taken by the City (a regulatory agency) to assure the “maintenance, restoration, or enhancement” of natural resources and includes procedures to protect the environment; and (2) Authorize staff to ensure that META Housing records a fully executed “Maintenance Covenant & Agreement Regarding On-Site BMP Maintenance” for the City owned property located at 4675 52nd Drive (Vernon Village Park). 25. Ratify the Advertisement for Contract No. CS-0487: Labor and Equipment for Placement of Type II (REAS) Slurry Seal. Recommendation: (1) Find that the approval of the proposed Citywide Slurry Seal, Phase III Project is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15301, Existing Facilities, part (c), existing highways and streets; and (2) Ratify the advertising for bids for the Labor and Equipment for Placement of Type II, Rubberized Emulsion Aggregate Slurry (REAS) Seal, Contract No. CS-0487. ORDINANCES 26. Ordinance No. 1225 - An Ordinance of the City Council of the City of Vernon amending Section 2.174(a)(3) of the Vernon Municipal Code to modify the qualifications of one of the appointment categories for the Vernon Business and Industry Commission. (First Reading) Recommendation: (1) Find that approval, and subsequent adoption, of the proposed ordinance is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Hold the first reading of the ordinance to modify the qualifications of the “Labor” appointment category for the Vernon Business and Industry Commission. ORAL REPORTS 27. City Administrator Reports – brief reports on activities and other brief announcements by the City Administrator and Department Heads. 28. City Council Reports – brief report on activities, announcements, or directives to staff. Regular City Council Meeting Agenda August 19, 2014 Page 7 of 7 CLOSED SESSION 29. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 Agency Designated Representatives: Mark Whitworth and Teresa McAllister Employee Organization: Vernon Police Officers’ Benefit Association ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon, California, and on the City’s website, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 14th day of August 2014. By: ________________________________ Ana Barcia Deputy City Clerk City Council Meeting August 19, 2014 City of Vernon Financial Update Overview •Fiscal 2014 Financial Results •Investment Highlights •Investment Derivatives - Swaps •Accomplishments and Future Challenges 2 Fiscal 2014 Financial Results 3 Fiscal Year Ending June 2014 Budget Summary (Revenues In $ Millions) 4 CITYWIDE ($336.8) GOVERNMENTAL FUNDS ($72.3) GENERAL FUND ($54.0) FORMER RDA FUND ($6.0) PARCEL TAX FUND ($11.7) HAZARDOUS WASTE FUND ($0.6) ENTERPRISE FUNDS ($264.5) LIGHT AND POWER FUND ($202.8) GAS FUND ($52.7) WATER FUND ($8.5) FIBER OPTICS FUND ($0.5) Fiscal Year Ending June 2014 Financial Comparison (In $ Millions) 5 $(50.0) $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 ENTERPRISE REVENUES ENTERPRISE EXPENDITURES GOVERNMENTAL REVENUES GOVERNMENTAL EXPENDITURES 12 MONTH BUDGET $264.5 $263.8 $72.3 $73.0 12 MONTH ACTUAL $252.8 $251.0 $66.7 $64.4 VARIANCE $(11.7)$(12.8)$(5.6)$(8.6) |-- - - - - - - - - In M i l l i o n s -- - - - - - - - - | 6 Fiscal Year Ending June 30, 2014 Expenditures (in $ millions) 12 Months 12 Months 12 Month Variance Department Budget Actual (UNDER)/OVER GOVERNMENTAL General Government 38.1 33.0 (5.1) Health 1.6 1.4 (0.2) Public Safety 22.9 24.3 1.4 Public Works 10.4 5.7 (4.7) TOTAL GOVERNMENTAL 73.0 64.4 (8.6) ENTERPRISE Light and Power 201.8 188.2 (13.6) Gas 52.7 56.9 4.2 Water 8.4 5.5 (2.9) Fiber 0.9 0.4 (0.5) TOTAL ENTERPRISE 263.8 251.0 (12.8) CITY WIDE TOTAL EXPENSES 336.8 315.4 (21.4) Comparison of 2014 & 2015 Budgets (In $ Millions) 7 $(50.0) $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 ENTERPRISE REVENUES ENTERPRISE EXPENDITURES GOVERNMENTAL REVENUES GOVERNMENTAL EXPENDITURES 2014 BUDGET $264.5 $263.8 $72.3 $73.0 2015 BUDGET $271.5 $271.5 $71.8 $71.8 VARIANCE $7.0 $7.7 $(0.5)$(1.2) |-- - - - - - - - - In M i l l i o n s -- - - - - - - - - | Investment Highlights 8 Investment Policy •City Investment Policy conforms to the State’s requirements (Government Code 53600) •City Investment Policy addresses:  Safeguarding principal  Meeting liquidity needs  Achieving return on investments  Minimizing loss on investments 9 Allowable Types of Investments Authorized Investment Type Maximum Maturity Maximum Percentage of Portfolio* Maximum Investment in One Issuer Minimum Rating Securities of the U.S. Government, or its Agencies 5 years None None None Certain Asset-Backed Securities 5 years None None AA Certificates of Deposit 5 years 30% None None Bankers' Acceptances 180 days 40% 30% None Commercial Paper 270 days 25% 10% P-1 Repurchase Agreements 1 year None None None Reverse Repurchase Agreements 92 days 20% None None Medium-Term Notes 5 years 30% None A Mutual Funds Investing in Eligible Securities N/A 20% 10% AAA Money Market Mutual Funds N/A 20% 10% AAA Mortgage Pass-Through Securities 5 years 20% None AA State Administered Pool Investment N/A None $50 million None 10 * Excluding amounts held by bond trustee that are not subject to California Government Code restrictions. Four Types of Investment Risks •Credit Risk  Risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. •Custodial Credit Risk  Risk that in the event of failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities. •Concentration of Credit Risk  Risk of loss attributed to the magnitude of the City’s investment in a single issuer. •Interest Rate Risk  Risk that changes in market interest rates will adversely affect the fair value of an investment. 11 Investment Risk No. 1 - Credit Risk As of June 30, 2014 (In $ Millions) 12 Minimum Actual Fair Value % Required Credit Rating as of of Description Rating Moody's / S&P 6/30/14 Total In custody of Treasurer: Cash on Hand and on Deposit N/A N/A $ 13.4 10.0% Local Agency Investment Fund None Not Rated 0.5 0.4% Total in custody of Treasurer 13.9 10.4% In custody of Trustee: Deposits and Money Market Funds N/A N/A 73.5 55.0% U.S. Treasury Notes None Aaa / AA+ 30.6 22.9% Federal National Mortgage Association None Aaa / AA+ 7.3 5.5% Federal Home Loan Mortgage Corporation None Aaa / AA+ 6.1 4.6% Federal Home Loan Banks None Aaa / AA+ 2.3 1.7% Total in custody of Trustee 119.8 89.6% Total cash and investments held by Treasurer and Trustee $ 133.7 100.0% Investment Risk No. 2 - Custodial Credit Risk As of June 30, 2014 •Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per financial institution. •In California, a financial institution is required to secure deposits in excess of the FDIC limit. This can be done in two different ways: 1. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. 2. The financial institution can pledge first deed mortgage notes having a value of 150% of the secured public deposits. 13 Investment Risk No. 3 - Concentration of Credit Risk As of June 30, 2014 (In $ Millions) 14 Policy allows 20% maximum in this category with a 10% maximum in any one issuer. Issuer In Custody of Fair Value as of 6/30/14 % of Total Primary Government: Federal Home Loan Mortgage Corporation Trustee $6.1 4.6% Federal National Mortgage Association Trustee $7.3 5.5% Total Investments $13.4 10.1% Investment Risk No. 4 - Interest Rate Risk As of June 30, 2014 (In $ Millions) 15 Investment Type Fair Value as of 6/30/14 Less than 12 Months 13 - 24 Months 25 - 60 Months % of Total Cash 14.1$ 14.1$ -$ -$ 0.5% Money Market Funds 72.8 72.8 - - 54.7% Local Agency Investment Fund 0.5 0.5 - - 0.5% U.S. Treasury Notes 30.6 3.1 11.4 16.1 27.2% Federal National Mortgage Association 7.3 2.4 4.9 - 7.1% Federal Home Loan Mortgage Corporation 6.1 3.7 2.4 - 8.3% Federal Home Loan Banks 2.3 - 2.3 - 2.2% Total Investments 133.7$ 96.6$ 21.0$ 16.1$ 100.0% Investment Maturities (in Months) Investment Portfolio Fiscal Years 2010 – 2014 (In $ Millions) 16 133.7 131.9 114.0 143.4 140.2 $73.3 $52.9 $22.6 $21.4 $18.1 $58.6 $61.1 $120.8 $118.8 $115.6 $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 2010 2011 2012 2013 2014 Unrestricted Restricted Investment Income Fiscal Years 2010 – 2014 (In $ Millions) 17 $1.4 $1.7 $1.0 $0.8 $0.8 $- $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 2010 2011 2012 2013 2014 Cash and Investments Fiscal Year Ending June 30, 2014 (In $ Millions) Cash and Investments Enterprise 6/30/2014 Governmental 6/30/2014 Total Restricted Cash (debt service, capital improvement, grants, and rate stabilization) $ 110.8 $ 4.8 $ 115.6 Unrestricted Cash (available for City’s daily operation) 16.8 1.3 18.1 Totals $ 127.6 $ 6.1 $ 133.7 18 Investment Derivatives - Swaps 19 Investment Derivatives - Swaps (In $ Millions) Investment Derivative Instruments (Variable to Fixed Swaps) Notional Amount Derivative Liability 6/30/2013 Gain (Loss) 7/1/2013 - 6/30/2014 Derivative Liability 6/30/2014 2004 Series A Bonds (City pays 3.607% and receives 62.87 of LIBOR one-month index plus 0.119%) $ 90.2 $ (13.2) $ (3.4) $ (16.6) 2004 Series B Bonds (City pays 3.542% and receives 62.87 of LIBOR one-month index plus 0.119%) 83.6 (13.9) 0.2 (13.7) Totals $ 173.8 $ (27.1) $ (3.2) $ (30.3) 20 Accomplishments and Future Challenges 21 Accomplishments •Preliminary five year long-term financial plan is currently being studied by the City’s Financial Advisor, PFM. •Each department closely monitored its revenues and expenditures for a positive outcome. •A fee study was completed and appropriate rates were adopted. •Recommendations from City-wide job classification and compensation study have been adopted. •City has reached agreement with four of the six employee bargaining units. 22 Future Challenges •In Fiscal 2015, the Government Accounting Standards Board (GASB) will require governments to recognize and record unfunded pension liabilities. A funding plan to address the unfunded liability needs to be developed. –$30 million public safety’s unfunded pension liability (currently 84% funded) –$15 million miscellaneous employees’ unfunded pension liability (currently 87% funded) •General Fund’s structural deficit of approximately $25 million needs to continue to be addressed through the budget process. •In Fiscal 2015, VG&E’s bond financed funds for capital projects are projected to be fully used. The City needs to plan how to fund VG&E’s ongoing infrastructure costs starting with Fiscal 2016. –$5 to $10 million estimated annual funding will be required to maintain a reliable electrical infrastructure. 23 MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, AGUST 5, 2014, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Davis, Maisano, Martinez, and Ybarra MEMBERS ABSENT: None The meeting was called to order at 9:00 a.m. by Mayor McCormick; Edward Brambila of Maywood Academy High School led the flag salute. CHANGES TO THE AGENDA Mayor McCormick announced that there are no changes to the agenda. PUBLIC COMMENT Mayor McCormick announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council; the public will be given an opportunity to comment on matters on the posted agenda during Council deliberation. No one responded. PRESENTATIONS 1. A Proclamation of the Mayor and the City Council of the City of Vernon Commending and Honoring Kevin Orvil Monge for his service and support of his community. 2. A Proclamation of the Mayor and the City Council of the City of Vernon Commending and Honoring Kristian Emiliano Vasquez for his service and support of his community. Mayor McCormick presented Kevin Orvil Monge with a Proclamation for his service and support to the community. Mayor McCormick announced that Kristian Emiliano Vasquez was not present to accept his Proclamation. PUBLIC HEARINGS 3. Consider Vernon’s conformance to the criteria in the Congestion Management Program as established by the Los Angeles County Metropolitan Transportation Authority. Resolution No. 2014-49 - A Resolution of the City Council of the City of Vernon finding the City of Vernon to be in conformance with the Congestion Management Program (CMP) and adopting the CMP Local Development Report, in accordance with California Government Code Section 65089. Recommendation: (1) Find that approval of the 2014 CMP Local Development Report is statutorily exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15276, which expressly exempts the preparation and adoption of a congestion management program and categorically exempt pursuant to CEQA Guidelines section 15061(b)(3) because there is no possibility that approving the report may have a significant effect on the environment; and (2) Adopt a resolution self-certifying the City’s compliance with the Congestion Management Program requirements and adopt the 2014 CMP Local Development Report in accordance with California Government Code Section 65089. Regular City Council Meeting Minutes August 5, 2014 Page 2 of 7 At 9:04 a.m. Mayor McCormick opened the public hearing to consider Vernon’s conformance to the criteria in the Congestion Management Program as established by the Los Angeles County Metropolitan Transportation Authority. Director of Public Works, Water, and Development Services Kevin Wilson provided an oral report and recommended the adoption and approval of the resolution certifying the City’s compliance with the Congestion Management Program. Mayor McCormick opened the public comment portion of the public hearing. With no public comment or questions to the staff, at 9:08 a.m. the public hearing was closed. Wilson additionally noted risks should the certification not be adopted. It was moved by Davis and seconded by Maisano to approve Resolution No. 2014-49. Motion carried, 5-0 CONSENT CALENDAR It was moved by Maisano and seconded by Martinez to approve all matters listed under the Consent Calendar under one motion. Motion carried, 5-0. Claims Against the City – Received and Filed 4. Claim for Damages received on July 17, 2014, from Pacific Bell/ AT&T, in an amount to be determined. Minutes – To be Received and Filed 5. Minutes of the Special and Regular City Council Meeting held June 17, 2014. 6. Minutes of the Special Joint City Council and Successor Agency Meeting held July 1, 2014. 7. Minutes of the Regular City Council Meeting held July 1, 2014. 8. Minutes of the Regular City Council Meeting held July 15, 2014. Warrant Registers 9. Ratification of the following City Warrant Registers to record the following voided checks: a. City Warrant Register No. 1403 to record voided Check No. 344615 in the amount of $150.00; and b. City Warrant Register No. 1399 to record voided Check No. 344002 in the amount of $75.00; and c. City Warrant Register No. 1398 to record voided Check No. 343858 in the amount of $440.00. 10. Ratification of Light & Power Warrant Register No. 365 to record voided Check No. 510738 in the amount of $45.58. 11. Approval of City Warrant Register No. 1405, totaling $2,316,638.77, which covers the period of July 8, through July 28, 2014, and consists of the following: a. Ratification of wire transfers totaling $1,421,176.32; and b. Ratification of the issuance of early checks totaling $627,965.22; and c. Authorization to issue pending checks totaling $267,497.23. Regular City Council Meeting Minutes August 5, 2014 Page 3 of 7 12. Approval of Light & Power Warrant Register No. 370, totaling $5,648,025.15, which covers the period of July 8, through July 28, 2014, and consists of the following: a. Ratification of wire transfers totaling $5,514,440.38; and b. Ratification of the issuance of early checks totaling $36,241.49; and c. Authorization to issue pending checks totaling $97,343.28. 13. Approval of Gas Warrant Register No. 158, totaling $2,805,103.98, which covers the period of July 8, through July 28, 2014, and consists of the following: a. Ratification of wire transfers totaling $2,745,124.83; and b. Ratification of the issuance of early checks totaling $29,412.07; and c. Authorization to issue pending checks totaling $30,567.08. Fire Department 14. Activity Report for the period of July 1, through July 15, 2014, to be received and filed. 15. Resolution No. 2014-50 - A Resolution of the City Council of the City of Vernon approving and adopting an updated General Fee Schedule. Recommendation: (1) Approve a resolution to, among other things, amend Exhibit A of the City’s General Fee Schedule to remove the existing false security alarm fee for the second false alarm response within a fiscal year. The lack of a fee for the first false alarm would continue, and the fees for third and each subsequent false alarm response would remain unaffected. The resolution would also find that the revision to the false security alarm fee is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. Gas and Electric Department 16. April 2014 Vernon Gas and Electric Resource Procurement Report, to be received and filed. Health and Environmental Control Department 17. Approval of a Services Agreement with KJServices Environmental Consulting for Program Management and Implementation Services. Recommendation: (1) Find that approval of the proposed Services Agreement with KJServices Environmental Consulting is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Authorize the City Administrator to enter into a Services Agreement between the City of Vernon and KJServices Environmental Consulting in substantially the same form as submitted with the staff report, for the period of August 1, 2014 through October 31, 2016, in an amount not to exceed $100,780.00. It is further recommended that the City Council find that “the bests interests of the City are served by a direct award of the contract without a competitive selection process” and that it would be “commercially unreasonable” to re-bid those portions of this contract that have continued to have been awarded to KJServices Environmental Consulting since 1998. Regular City Council Meeting Minutes August 5, 2014 Page 4 of 7 Police Department 18. Activity Log and Statistical Summary of Arrest and Activities for the period of July 1, through July 15, 2014, to be received and filed. NEW BUSINESS Public Works, Water and Development Services Department 19. Resolution No. 2014-51 - A Resolution of the City Council of the City of Vernon declaring a Phase I Water Supply Shortage pursuant to Section 25.103 of the Vernon Municipal Code. Recommendation: (1) Find that declaring a Phase I Water Supply Shortage pursuant to Vernon Municipal Code § 25.103 is exempt under the California Environmental Quality Act (“CEQA”) in accordance with (a) CEQA Guidelines Section 15061 (b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (b) Section 15307, because it is an action taken by a regulatory agency to assure the “maintenance, restoration, or enhancement” of natural resources and includes procedures to protect the environment; and (2) Adopt the resolution declaring a Phase I Water Supply Shortage pursuant to Vernon Municipal Code Section 25.103. Director of Public Works, Water and Development Services, Kevin Wilson conducted the presentation and requested the adoption of the proposed resolution. Wilson advised that it is anticipated that the implementation would not have a significant impact on the business community. In response to Councilmember Ybarra, Wilson addressed concerns regarding customer notification. In response to Mayor Pro-Tem Davis’ inquiry on penalties, Wilson explained that the objective is compliance; public education on the issue will first be conducted before it escalates to penalties. It was moved by Martinez and seconded by Davis to approve Resolution No. 2014-51, Motion carried, 5-0 20. Approval to Advertise for Contract No. CS-0428: Office Reconfiguration of City Administration, City Attorney and Human Resources Departments. Recommendation: (1) Find that the proposed Capital Improvement is categorically exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15301, Existing Facilities, part (a), because the project is merely to make interior or exterior alterations involving interior partitions, plumbing, and electrical conveyances; and (2) Approve Contract No. CS-0428 and grant authority to advertise for bids for the Office Reconfiguration of City Administration, City Attorney and Human Resources Departments, based upon the City’s standard public works bidding package. Director of Public Works, Water and Development Services Kevin Wilson conducted the oral report on the proposed office configuration bid request. Councilmember Ybarra expressed concerns with the project cost and inquired whether staff considered other options. In response, Wilson reported on the alternatives. City Administrator Mark Whitworth explained the need for the office reconfiguration. Regular City Council Meeting Minutes August 5, 2014 Page 5 of 7 Independent Reform Monitor John Van de Kamp recommended that the project be implemented in two phases over two fiscal years in order to address budget concerns. Wilson confirmed for Councilmember Maisano that sufficient funds have been budgeted with the current fiscal year. It was moved by Maisano and seconded by Martinez to approve the advertisement for Contract No. CS-0428 for the office reconfiguration. Motion carried, 4-1, with Ybarra in opposition. ORDINANCES 21. Ordinance No. 1224 - An Ordinance of the City Council of the City of Vernon, California, amending Sections 16.15, 16.16 and 16.17 of Article I, Chapter 16 of the Vernon Municipal Code to assign speed limits on certain streets and to repeal all ordinances or parts of ordinances in conflict therewith (second reading). Recommendation: (1) Find that adoption of the Ordinance is exempt from the California Environmental Quality Act (“CEQA”) in accordance with Class 1, Section 15301(c) of the CEQA Guidelines, California Code of Regulations, Title 14. Projects exempted under Class 1, Section 15301(c), consist of the operation, repair, or minor alteration of existing highways, streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities involving negligible or no expansion of use; and (2) Adopt the proposed Ordinance amending Sections 16.15, 16.16 and 16.17 of Chapter 16, Law Enforcement, of the Vernon Municipal Code. Mayor McCormick announced the proposed ordinance by title. Director of Public Works, Water and Development Services Kevin Wilson reported that there have been no changes to the ordinance since its introduction at the last meeting. It was moved by Davis and seconded by Maisano to adopt Ordinance No. 1224. A roll-call vote was taken: - Councilmember Martinez, yes - Councilmember Ybarra, yes - Councilmember Maisano, yes - Mayor Pro Tem Davis, yes - Mayor McCormick, yes Motion to adopt Ordinance No. 1224 carried, 5-0. DISCUSSION ITEMS 22. Presentation by the Director of Public Works, Water and Development Services on the I-710 Corridor Project. Director of Public Works, Water and Development Services Kevin Wilson provided a presentation and update on the I-710 Corridor project. He reported on the approval of two options for further study, and the approval of the Community Alternative 7 option which includes enhancements to the river, parks, and other community facilities; this is to be reviewed by a separate committee. Mayor Pro-Tem is concerned that the Community Alternative 7 will prolong the I-710 Corridor project, and expressed concerns on how the project will be funded. Mayor McCormick agrees with Davis’ concerns. He directed staff to take the position that Vernon requests that the Community Alternative 7 be considered separately from the I-710 Corridor project. Regular City Council Meeting Minutes August 5, 2014 Page 6 of 7 ORAL REPORTS 23. City Administrator Reports – brief reports on activities and other brief announcements by the City Administrator and Department Heads. 24. City Council Reports – brief report on activities, announcements, or directives to staff. Police Chief Daniel Calleros reported on officer’s response to recent incidents. Calleros reported on the implementation of the AAA vehicle loan program, and reported on two (2) Police interns. Captain Michael Gillman reported the arrest of 3 individuals related to vandalism. Mayor Pro- Tem Davis reported on vandalism near his residence. Fire Chief Michael Wilson reported on recent Fire Department activities, training, and responses to incidents. Wilson announced the recognition of former Fire Chief Smokey Bass by the Box 15 group. Director of Public Works, Water and Development Services Kevin Wilson provided an update on capital improvement project and the new housing development project. Wilson also reported on a recent water main rupture and repair. In response to Independent Reform Monitor John Van de Kamp, Wilson reported on the water pipes condition and age. Electrical Resources Planning & Development Manager Abraham Alemu reported on recent power outages including a serious incident at U.S. Growers. Finance Director William Fox reported on the bond review process as required, and the commencement of the annual financial audit. Director of Health and Environmental Control Leonard Grossberg reported on whole sale food vehicle inspections, and active shooter training for the Department. Human Resources Director Teresa McAllister announced upcoming employee events and activities, reported on the recruitment process for Fire personnel, and forthcoming updates to personnel policies. Economic Development Manager/Successor Agency Staff Alex Kung announced the cancellation of the Oversight Board to the Successor Agency meeting until September 4, 2014, and appointment of new member Marlene Dunn to the Board. Kung also announced a free webinar on manufacturing tax rebates and the extension of the California Competes tax credit. The Vernon Chamber of Commerce was notified of both. Senior Strategic Policy Advisor and Director of Communications Advisor Fred MacFarlane provided an update on the grand opening of the artificial turf soccer field at Salt Lake Park on September 6th, 2014. In response to Van de Kamp’s inquiry, Fox explained the City’s intent to refinance and appropriately plan for capital improvement costs through the help of Public Financing Management Inc., the City’s financial advisor. City Administrator Mark Whitworth reported on upcoming Vernon CommUNITY Fund Grant Committee activities. He announced the availability of the 7th edition of the Independent Reform Monitor John Van de Kamp report. He provided an update on the JLAC audit. Members to the Business and Industry Commission are to be appointed at the next meeting. Whitworth announced other community events. Regular City Council Meeting Minutes August 5, 2014 Page 7 of 7 CLOSED SESSION With no public comment on the closed session items, at 10:43 a.m., it was moved by Maisano and seconded by Davis to go into closed session to discuss the item listed under closed session. Motion carried, 5-0. 25. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 Agency Designated Representatives: Mark Whitworth, Teresa McAllister, and Paul Coble Employee Organizations: Vernon Police Officers’ Benefit Association and Vernon Firemen's Association. At 11:06 a.m., the Council exited closed session. City Attorney Hema Patel announced that there is no reportable action. With no further business, at 11:07 a.m., Mayor McCormick adjourned the meeting. ________________________ W. Michael McCormick Mayor ATTEST: _________________________ Ana Barcia Deputy City Clerk Recording requested by and mail to: Name: City of Vernon Building Department Address: 4305 Santa Fe Avenue Vernon, California 90058 ************************************** Space Above This Line For Recorder's Use ******************************************* MAINTENANCE COVENANT AND AGREEMENT REGARDING ON-SITE BMP MAINTENANCE The undersigned hereby certifies I am (we are) the lessee(s) of the hereinafter legally described real property located at: ADDRESS: 4675 E 52nd Drive, Vernon, CA 90058 ASSESSOR’S ID #: APN 6314-002-900 in the City of Vernon, County of Los Angeles, State of California more particularly described in the legal description attached as Exhibit “A” and shown on Exhibit “B”. Pursuant to Section 21.5.9 of the Vernon Municipal Code relating to the control of pollutants carried by stormwater runoff, structural and/or treatment control Best Management Practices (BMPs) have been established at the aforementioned property. The BMPs on said property include (list specific structural BMPs) -Two Kristar FloGard Plus Catch Basin Filter Inserts -Above Grade Filtration Planter Boxes with Underdrain (1997 SF Total) more specifically described in Exhibit “C”, we do hereby covenant and agree to maintain the BMPs according to the Operations & Maintenance Plan attached herewith as Exhibit “D”. This maintenance covenant and agreement shall run with the land and shall be binding upon any future lessees, encumbrancers, their successors, heirs or assigns and shall continue in effect until the City of Vernon approves its termination. It is hereby acknowledged that failure to properly maintain the subject BMPs may cause non-compliance with the National Pollutant Discharge Elimination System requirements resulting in the City of Vernon or State of California declaring a nuisance and/or issuing orders or citations resulting in fines or penalties and/or criminal prosecution. (Print Name of Property Lessee) (Print Name of Property Lessee) (Title of Property Lessee) (Title of Property Lessee) (Signature of Property Lessee) (Signature of Property Lessee) Dated this _________ day of ____________ 20____. Dated this _________ day of ____________ 20____. State of California County of ___________________________ On __________________before me, ___________________________________________, (Insert Name of Notary Public and Title) 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 on which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the forgoing paragraph is true and correct. WITNESS my hand and official seal. Signature________________________________ (Seal) Order Number: NCS-584401-LA2 Page Number: 7 First American Title Insurance Company LEGAL DESCRIPTION Real property in the City of Vernon, County of Los Angeles, State of California, described as follows: LOTS 45 TO 53 INCLUSIVE OF TRACT NO. 7923, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 113, PAGES 80 TO 83 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 6314-002-900 1 Exhibit B 4675 E 52nd Drive, Vernon, California 90058 2 Exhibit B 4675 E 52nd Drive, Vernon, California 90058 3 Exhibit C Filter Insert BMP at 4675 E 52nd Drive, Vernon, California 90058 4 Exhibit C Planter Box BMP at 4675 E 52nd Drive, Vernon, California 90058 5 Planter Box BMP at 4675 E 52nd Drive, Vernon, California 90058 6 Exhibit D Operation and Maintenance Plan at 4675 E 52nd Drive, Vernon, California 90058 CATCH BASIN FILTER INSERT The inspection and maintenance program will include the following key components: 1) REGULAR INSPECTIONS: The catch basin insert will be inspected on a regular basis. The frequency of inspection will be based on pollutant loading, amount of debris, leaves, etc., and amount of runoff. At a minimum, there will be three inspections per year. 2) CONDUCT OF THE VISUAL INSPECTION: a) Broom sweep around the inlet and remove the inlet grate. b) Inspect the filter liner for serviceability. If called for, the filter body will be replaced. c) Check the condition of the absorbent pouches and visually check the condition of the enclosed adsorbent. If the surface of the granule is more than 50% coated with a dark gray or black substance, the pouches will be replaced with new ones. d) Check for loose or missing nuts and gaps between the filter and the inlet wall, which would allow bypass of the filter during low flows. e) The filter components will be replaced in the inlet and the grate replaced. 3) CLEANING OUT THE FILTER INSERT: Regardless of the model of the filter insert, the devices must be cleaned out on a recurring basis. It is recommended that the filter insert undergoes at least 3 cleanings per year - more in high exposure areas. a) The standard filter, in most cases, can be cleaned out by removing the device from the inlet and dumping the contents into a DOT approved drum for later disposal. If the the oil-absorbent pouches need to be changed, the time to change them is immediately after dumping and before the filter is replaced in the inlet. 4) MAINTENANCE LOG: Keep a log of all inspections and maintenance performed on the catch basins and filter inserts. Keep this log on-site. FILTRATION PLANTER BOXES WITH A 3” MULCH LAYER The inspection and maintenance program will include the following key components: Filtration planters remove stormwater pollutants through a combination of overland flow through vegetation, surface detention, and filtration through soil. Frequent inspection and maintenance is required until vegetation becomes established. Thereafter, routine maintenance requirements are considered minimal. 7 Typical routine maintenance consists of the following: 1. Inspect soil and plantings. Remove weeds prune vegetation and replenish mulch as needed. Clear any obstructions and remove any accumulation of sediment. 2. Inspect side slopes for evidence of instability or erosion and correct as necessary. 3. Observe soil at the bottom of the ponding area for uniform percolation throughout. If portions of the area do not drain within 48 hours after the end of a storm, the soil should be tilled and replanted. Remove any debris or accumulated sediment. 4. Examine the vegetation to insure that it is healthy and dense enough to provide filtering and to protect soils from erosion. Confirm that irrigation is adequate and not excessive. Replace dead plants and remove invasive vegetation. 5. Abate any potential vectors by filling holes in the ground and around the ponding area. If mosquito larvae are present and persistent, contact the City of Vernon's Health & Environmental Control Department for information and advice. Mosquito larvicides should be applied only when absolutely necessary and then only by a licensed individual or contractor. MAINTENANCE LOG: Keep a log of all inspection and maintenance performed on the catch basins, trench drains, filters and planter box filtration system. Keep this log on-site. City of Vernon LABOR AND EQUIPMENT FOR PLACEMENT OF TYPE II SLURRY (REAS) VARIOUS LOCATIONS FOR PUBLIC WORKS, WATER & DEVELOPMENT SERVICES Contract No. CS-0487 Bid Opening Date: August 25, 2014 at 2:00 p.m. Construction Start Date: Estimated September 13, 2014 CITY OF VERNON PUBLIC WORKS, WATER & DEVELOPMENT SERVICES 4305 SANTA FE AVENUE VERNON, CA 90058 (323) 583-8811 2 CITY OF VERNON NOTICE INVITING BIDS Labor and Equipment for Placement of Type II Slurry (REAS) For Public Works, Water & Development Services One (1) Original and Two (2) copies of sealed bids shall be received prior to Monday, August 25, 2014 at 2:00 PM by the City Clerk, 4305 Santa Fe Avenue, Vernon, CA 90058, and will be open at that time and place. All bids shall be enclosed in sealed envelopes, distinctly marked “Bid” with the title of the bid and the bidder’s name address appearing on the outside. Mail sufficiently early or deliver in person before 2:00 p.m. on the day listed in the Notice Inviting Bids. Bids must be received in the City Clerk’s Office before that time. At the bid opening, the City Clerk shall open bid packages and acknowledge the receipt of Bids. Once all bid packages are opened and announced, the Unit Price Bid Forms will be made available for public review. NO LATE BIDS WILL BE ACCEPTED The bids shall be clearly titled. Copies of the Specifications may be obtained by mail, City of Vernon Website or in person from the Department of Public Works, Water & Development Services, 4305 Santa Fe Avenue, Vernon, CA 90058, telephone No. (323) 583-8811 Ext. 220. Refer to the specifications for complete details and bidding requirements. The specification and this notice shall be considered a part of any contract made pursuant thereunder. A pre-bid meeting is scheduled for Tuesday, August 19, 2014 at 10:00 a.m. This meeting is to answer any questions regarding the project map and specifications. Attendance is not mandatory. General Scope of Work: Refer to the Bid Documents, Project Map and Specifications for complete details of the Work and bid requirements all of which shall be considered a part of any contract made pursuant thereto. Contractor shall furnish all labor, materials, equipment, services, and specialized skills to perform the Work involved in the Project. 3 Other Bidding Information: 1. Time of Completion. This Work must be completed within three (3) Calendar Days from the date of commencement as established by the City’s written Notice to Proceed. 2. Amount of Liquidated Damages: $1,500.00 per Calendar Day. If Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time for substantial completion, Contractor shall pay City as liquidated damages the amount of $1,500.00 per day for each calendar day occurring after the expiration of the contract time for substantial completion until Contractor achieves substantial completion of the entire Work. 4. Bidding Documents. Bids must be made on the Proposal Form contained herein. 5. Engineer’s Estimate. An Engineer’s Estimate of the cost of construction of this Work has been prepared. Said estimate is in the range of $35,000 to $45,000. 6. Bid Security. All bids must be accompanied by bids security in the amount of ten percent (10%) of the bid price, in the form of cash, cashier’s check, money order, or surety bond. Mark Whitworth City Administrator Dated: ___________ (Authorized by City Attorney) Published: _______ 4 City of Vernon Instructions for Bidders Labor and Equipment for Placement of Type II Slurry (REAS) For Public Works, Water & Development Services City personnel with whom prospective bidders will deal with are: Vincent Rodriguez, Public Works Project Coordinator, Department of Public Works, 4305 Santa Fe Avenue, Vernon, CA 90058 (323) 583-8811 Ext. 220. Bid opening date and time: August 25, 2014 at 2:00 p.m. (“Bid Deadline”) Bids will be received and opened at the Office of the City Clerk, 4305 Santa Fe Avenue, Vernon, CA 90058 The bid must be received by the City Clerk prior to the time set for bid opening. A bid received by the City Clerk after the time set for the bid opening shall not be considered. 5 TABLE OF CONTENTS PAGE NOTICE INVITING BIDS 2 PART I: REQUIREMENTS AND INSTRUCTIONS TO BIDDERS 7 1.0 General Bid Requirements 7 1.1 Bidder’s Guarantees 7 1.2 Acceptance of Conditions 11 1.3 Truth and Accuracy of Representation 11 1.4 City Changes to the Bid Documents 11 1.5 Notice Regarding Disclosure of Contents of Documents 12 1.6 Award of Bid, and Determination of Responsiveness 12 1.7 Ineligibility to Contract 13 1.8 Error and Omissions 13 1.9 Patent Fees; Patent, copyright, Trade Secret and Trademark Fees 13 1.10 Taxes 13 1.11 Indemnity In The Event of Bid Dispute 13 2.0 SPECIAL CITY REQUIREMENTS 14 2.1 Living Wage Ordinance and Prevailing Wage Where Applicable 14 2.2 Equal Employment Opportunity In Contracting 14 2.3 Affidavit of Non-Collusion by Contractor 14 2.4 Local Preferences 15 2.5 Stormwater Management and Discharge Control 15 3.0 GENERAL SPECIFICATIONS 16 3.1 Bid Items 16 6 3.2 Evaluation of Bid 16 3.3 Award of Contract 16 3.4 Duration of Agreement 16 3.5 Sample Labor and Materials Contract 16 3.6 License and Permits 16 3.7 Substitution for Patented and Specified Articles 17 3.8 Exceptions and Exclusions 17 3.9 Liability Insurance 17 PART II: GENERAL REQUIREMENTS 18 PART III: SCOPE OF WORK REQUIREMENTS 21 PART IV: SPECIFICATIONS 22 A. General 22 B. Proposed Rubberized Emulsion-Aggregate Slurry (REAS), Type II 26 ATTACHMENTS 30 ATTACHMENT NO. 1 – BIDDER’S CHECKLIST 31 ATTACHMENT NO. 2 – SIGNATURE PAGE, LEGAL STATUS AND ACKNOWLEDGEMENT OF ADDENDA 32 ATTACHMENT NO. 3 – BID FORM 35 ATTACHMENT NO. 4 – AFFIDAVIT OF NON-COLLUSION 36 ATTACHMENT NO. 5 – VENDOR LIST QUESTIONNAIRE 37 ATTACHMENT NO. 6 – SAMPLE LABOR AND MATERIALS CONTRACT 38 ATTACHMENT NO. 7 – PMI EQUIPMENT RENTAL COST 60 ATTACHMENT NO. 8 – PROJECT MAP 61 7 PART I – REQUIREMENTS AND INSTRUCTIONS TO BIDDERS 1.0 GENERAL BID REQUIREMENTS To be considered, a bidder must strictly follow the format for bids in the specifications. Bids must be binding and firm. Any bids may be withdrawn before bid opening, but bids shall remain open and valid for ninety (90) calendar days after the Bid Deadline. 1.1 BIDDER’S GUARANTEES 1.1.1 Bid Security. Bid security in the amount of ten percent (10%) of the bid price, in the form of cash, cashier’s check, money order or surety bond, meeting City requirements, must accompany all bids. If the bidder to whom the contract is awarded shall for fifteen (15) calendar days after such award fail or neglect to enter into the contract and file the required bonds, the City may deposit in its treasury said bid security and, under no circumstances, shall it be returned to the defaulting bidder. 1.1.2 Performance and Payment Bonds. The bidder to whom the contract is awarded shall file the bonds specified by Section 2-4, “Contract Bonds,” of the Standard Specifications for Public Works Construction, 2012 Edition (Greenbook) and any amendments thereto, before execution of the contract. The term “Contract Price” shall be deemed to mean the total contract “not to exceed” amount consisting of the base bid stated in the bidder’s proposal plus additional amounts provided for adjustments to the estimated quantities contained in the bidder’s proposal and for extra work. Pursuant to California Public Contract Code Section 22300, substitution of securities for withheld funds is permitted in accordance therewith. 1.1.3 All Bonds. All bid, performance and payment bonds must be issued by a California admitted surety insurer with the minimum A.M Best Company Financial strength rating of “A:VII” or better. Bonds issued by a California admitted surety not listed on Treasury Circular 570 will be deemed accepted unless specifically rejected by the City. Bonds issued from admitted surety insurers not listed in Treasury Circular 570 must be accompanied by all documents enumerated in California Code of Civil Procedure Section 995.660. All such bonds must be accompanied by a power of attorney from the surety company authorizing the person executing the bond to sign on behalf of the company. If the bonds are executed outside the State of California, all copies of the bonds must be countersigned by a California representative of the surety. The signature of the person executing the bond on behalf of Surety must be acknowledged by a Notary Public as the signature of the person designated in the power of attorney. 8 1.1.4 Bidder Must Make Thorough Investigation. The Bidder shall examine carefully the site of the Work contemplated in the Map and Specifications. The submission of a Bid will be conclusive evidence that the Bidder has investigated and is satisfied as to the conditions to be encountered, as to the character, quality, and quantities of Work to be performed and materials to be furnished, the difficulties to be encountered, and to the requirements of the Drawings, Specifications, and other Contract Documents. The Bidder shall ascertain the locations of the existing utility services, and other underground facilities, and to provide for carrying out his/her operations so as to cause the minimum possible inconvenience to the occupants of property along any streets affected. All Work and costs involved in the safeguarding of the property of others shall be at the expense of the Bidder to whom the Contract may be awarded. 1.1.5 The Bidder hereby certifies that he/she has examined the local conditions, has read each and every clause of the Contract Documents, and that he/she has included all costs necessary to complete the specified Work in his/her Bid prices, and the Bidder agrees that if he/she is awarded the Contract he/she will make no claim against the City based upon ignorance of local conditions or misunderstanding of any of the provisions of the Contract. Should the conditions turn out otherwise than anticipated by him/her, the Bidder agrees to assume all risks incident thereto. 1.1.6 If any Bidder contemplating submitting a Bid is in doubt as to the true meaning of any part of the Bidding Documents, or who finds discrepancies, errors or omissions therein or who finds variances in any of the Bidding Documents with applicable law, such Bidder shall at once submit a written request for an interpretation or correction thereof to the City’s representative identified in the Notice Inviting Bids, or other designated individual. All Bidders shall submit such written requests to City, preferably on the Bidder’s Question Form provided at the end of these Instructions to Bidders, not less than ten (10) calendar days prior to the Bid Deadline. The person or entity submitting the request shall be responsible for its prompt delivery to City’s Contact Person identified in the Notice Inviting Bids. Any interpretation or correction will be made only by Addendum issued by the City and a copy of such Addendum will be delivered to all Interested Bidders of record. Any Addenda so issued must be acknowledged in the Bid and the cost of performing Work described in the Addenda shall be included in the Bid. Bidder’s failure to acknowledge receipt of all Addenda may result in rejection of the Bid as nonresponsive. No person is authorized to render an oral interpretation or correction of any Bidding Documents and no Bidder may rely on any such oral interpretation or correction issued by the City. The City shall not be responsible for any other explanation or interpretation of the Drawings or Specifications, or for any oral instructions. 1.1.7 Contractors License. At the time of the Bid Deadline and at all times during performance of the Work, including full completion of all corrective work during the Correction Period, the Contractor must possess a California contractor’s license or licenses, current and active, of the 9 classification required for the Work, in accordance with the provisions of Chapter 9, Division 3, Section 7000 et seq. of the Business and Professions Code. In compliance with Public Contract Code Section 3300, the City has determined that the Bidder must possess the following license(s): C29 issued by the State of California. In addition, if Bidder intends to self-perform any specialty sub-contract work, must possess the necessary licenses to self-perform such Work. The successful Bidder will not receive a Contract award if the successful Bidder is unlicensed, does not have all of the required licenses, or one or more of the licenses are not current and active. If the City discovers after the Contract’s award that the Contractor is unlicensed, does not have all of the required licenses, or one or more of the licenses are not current and active, the City may cancel the award, reject the Bid, declare the Bid Bond as forfeited, keep the Bid Bond’s proceeds, and exercise any one or more of the remedies in the Contract Documents in addition to those provided by law. 1.1.8 Subcontractors’ Licenses and Listing. Bidder must list each Subcontractor whom the Bidder must disclose under Public Contract Code Section 4104 (Subcontractor Listing Law), and the Bidder must provide all of the Subcontractor information that Section 4104 requires (name, address, license number, and portion of the Work). Bidder is hereby notified that pursuant to AB 44 (Buchanan), the bidding procedures of the Subletting and Subcontracting Fair Practices Act have been amended to require that effective July 1, 2014, the license number of all subcontractors shall be included in bid documents submitted to a public agency. An inadvertent error in the license number will not be considered nonresponsive if it is corrected within 24 hours after the bid opening. In addition, the City requires that the Bidder to list the dollar value of each Subcontractor’s labor or services. The City’s disqualification of a Subcontractor does not disqualify a Bidder. In such case, prior to and as a condition to award of the Contract, the successful Bidder shall substitute a properly licensed and qualified Subcontractor without an adjustment of the Bid Amount. At the time of the Bid Deadline and at all times during performance of the Work, each listed Subcontractor’s license must be current and active for the portion of the Work listed and shall hold all specialty certifications required for such Work. 1.1.9 Prevailing Wage Rates and Employment of Apprentices. The Project is a “public work” as defined in California Labor Code Section 1720. Contractor awarded this Contract and all Subcontractors of any tier shall not pay less than the minimum prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Work. The Director of Industrial Relations of the State of California, pursuant to the California Labor Code, and the rates determined by the California Director of Industrial Relations are available online at: www.dir.ca.gov/DLSR/PWD/. The Bidder and all Subcontractors shall utilize the relevant prevailing wage rate determinations in effect on the first advertisement date of the Notice Calling for Bids in preparing the Bid Proposal and all component price quotations, provided, however, if Davis-Bacon wage rates 10 apply, such rates are subject to increase by written notice, issued by Addendum not less than 10 calendar days before the Bid Deadline. Pursuant to California Labor Code Section 1770 et seq., the Director of the Department of Industrial Relations of the State of California and the United States Secretary of Labor have determined the general prevailing wage rates in the locality in which the Work is to be performed. Said rate schedules are available on the Internet at www.dir.ca.gov/DLSR/PWD/ and, if federally-funded, see the federal website: www.access.gpo.gov/davisbacon/. If there is a difference in the Federal and State prevailing wage rates for similar classifications of labor, the Contractor and its Subcontractors shall pay the highest wage rate. The wage rate for any classification not listed, but which may be required to execute the Work, shall be commensurate and in accord with specified rates for similar or comparable classifications for those performing similar or comparable duties. To comply with California Labor Code Section 1773.2, the Contractor shall post, at appropriate and conspicuous locations on the job site, a schedule showing all applicable prevailing wage rates and shall also comply with the requirements of California Labor Code Section 1773 et seq. Apprenticeship Committee Contract Award Information. Pursuant to California Labor Code § 1777.5 and Title 8 of the California Code of Regulations § 230, the Contractor and Subcontractors of any tier who are not already approved to train through an apprenticeship program sponsor shall, within ten (10) calendar days of signing the Contract or subcontract, as applicable, but in any event prior to the first day in which the Contractor or Subcontractor has workers employed on the Project, submit the State Public Works Contract Award Information Form (DAS Form 140) to the appropriate local apprenticeship committees whose geographic area of operation include the area of the Project and who can supply apprentices to the Project. City reserves the right to require Contractors and Subcontractors to submit a copy of said forms to the City. Statement of Employer Fringe Benefit Payments. Within five (5) calendar days of signing the Contract or subcontract, as applicable, the State Statement of Employer Payments (DLSE Form PW 26) shall be completed for each Contractor and Subcontractor of any tier who pays benefits to a third party trust, plan or fund for health and welfare benefits, vacation funds or makes pension contributions. The form must contain, for each worker classification, the fund, plan or trust name, address, administrator, the amount per hour contributed and the frequency of contributions. Training fund contributions shall also be reported in this form. City reserves the right to require Contractors and Subcontractors to submit a copy of said forms to the City. Notice to Subcontractors. Bidders shall notify all potential Subcontractors submitting price quotations for portions of the Work, as to the requirements concerning payment of prevailing wage rates, payroll records, hours of Work, and employment of apprentices. 11 1.2 ACCEPTANCE OF CONDITIONS By submitting a bid, each bidder expressly agrees to and accept the following conditions: 1. All parts of the Instructions to Bidders and Specifications will become part of the Contract between the selected bidder and the City. Please note: In case of a conflict, the General Specifications shall supersede any other conflicting section of the Project Documents. 2. The City may require whatever evidence is deemed necessary relative to the bidder’s financial stability and ability to complete this project; 3. The City reserves the right to request further information from the bidder, either in writing or orally, to establish any stated qualifications; 4. The City reserves the right to solely judge the bidder’s representations, and to solely determine whether the bidder is qualified to undertake the project pursuant to the criteria set forth herein. The bidder, by submitting a bid, expressly acknowledges and agrees that the judgment of the City as to whether or not the bidder is qualified to perform the project, shall be final, binding and conclusive; 5. The City reserves the right to reject any and all bids, to award all or any individual part/item of the bid, and to waive any informalities, irregularities or technical defects in such bids and determine the lowest responsible bidder, whichever may be in the best interests of the City. No late bids will be accepted, nor will any oral, facsimile or electronic bids be accepted by the City. If a successful bidder fails to enter into a contract awarded to them, or if a contract is not commenced by the Contractor or their surety, the City Council may abandon the matter or may re-advertise the original bid or a modification thereof, or may award the contract to the next lowest responsive and responsible bidder, with the consent of such bidder; and 6. This bidding process does not commit the City to award any contract, and the City is not liable for any cost incurred by the bidder in the preparation and submission of a bid. 1.3 TRUTH AND ACCURACY OF REPRESENTATION False, incomplete or unresponsive statements in connection with the bid may be sufficient cause for rejection of a bidder. 1.4 CITY CHANGES TO THE BID DOCUMENTS The City reserves the right to change any part of these Instructions to Bidders and Specifications any time prior to the bid opening. Any changes shall be in the form of addenda and will become a part of the bid documents and of the contract. Addenda shall be made available to each bidder. 12 City reserves the right to extend the Bid Deadline by issuing an Addendum to Interested Bidders no later than 72 hours prior to the Bid Deadline. Copies of Addenda will be made available for inspection wherever Bidding Documents are on file for that purpose. Each Bidder shall ascertain prior to submitting a Bid that the Bidder has received all Addenda issued and the Bidder shall acknowledge their receipt in the Bid. Such addenda will become a part of the bid documents and of the Contract. 1.5 NOTICE REGARDING DISCLOSURE OF CONTENTS OF DOCUMENTS All bids accepted by the City shall become the exclusive property of the City. Upon opening, all bids accepted by the City shall become a matter of public records and shall be regarded as public, with the exception of those elements of each bid which are identified by the bidder as business or trade secrets and plainly marked as “trade secret,” “confidential,” or “proprietary.” Each element of a bid which a bidder desires not to be considered a public record must be clearly marked as set forth above, and any blanket statements (i.e., regarding entire pages, documents, or other non- specific designations) shall not be sufficient and shall not bind the City in any way whatsoever. If disclosure is required under the California Public Records Act or otherwise by law (despite the bidder’s request for confidentiality), the City shall not in any way be liable or responsible for the disclosure of any such records or part thereof. 1.6 AWARD OF BID AND DETERMINATION OF RESPONSIVENESS The Contract shall be awarded to the lowest responsive and responsible bidder(s). In determining whether a bidder is responsible, the following is a sample of some, but not all, of the considerations that may be taken by the City: 1. The quality of the material or service offered; 2. The ability, capacity and skill of the bidder to perform the contract or provide the material or services; 3. Whether the bidder can perform the contract or provide the service promptly, or within the time specified, without delay or interference; 4. The sufficiency of the bidder’s financial resources and the effect thereof on his ability to perform the contract or provide the material or services; 5. The character, integrity, reputation, judgment, experience and efficiency of the bidder; 6. The quality and timeliness of the bidder’s performance, if any, on previous orders or contracts for the City; 7. Litigation by the bidder on previous orders or contracts with the City; and 13 8. The ability of the bidder to provide future maintenance and service where such maintenance and service is essential. 1.7 INELIGIBILITY TO CONTRACT Pursuant to Sections 1777.1 and 1777.7 of the California Labor Code, any Contractor that has been found by the State Labor Commissioner to be debarred and in violation of said Labor Code shall be ineligible to bid on or be awarded a contract for this project. The period of debarment shall be not less than one year and up to three years as determined pursuant to Section 1777.7 of the Labor Code. In submitting its bid, the Bidder certifies that it is aware of these provisions and is eligible to bid on this project. The successful Bidder shall also be prohibited from performing work on this project with a subcontractor who is ineligible to perform work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code. In submitting its bid, the Bidder certifies that it has investigated the eligibility of each and every subcontractor it intends to use on this project and has determined that none is ineligible to perform work pursuant to the above provisions of law. 1.8 ERROR AND OMISSIONS Bidders shall not be allowed to take advantage of any errors or omissions in the Instructions to Bidders or Specifications. Full instructions will be given if such error or omission is discovered and timely called to the attention of the City. In submitting its bid, the Bidder certifies that it is aware of these provisions and is eligible to bid on this Contract. 1.9 PATENT FEES; PATENT, COPYRIGHT, TRADE SECRET AND TRADEMARK FEES Each bidder shall include in the price bid any patent fees, royalties and charges on any patented article or process to be furnished or used in the prosecution of the Work. 1.10 TAXES Price bid shall include all federal, state, local, and other taxes. 1.11 INDEMNITY IN THE EVENT OF BID DISPUTE In the event of a bid dispute based upon the bidder’s submission of this bid and the City’s acceptance of same, the bidder will be required to indemnify, defend and hold harmless at its expense, including the provision of legal counsel, the City, its agents, employees and officers from liability, claims, demands, damages and costs if such dispute or action arises solely upon the award of the bid in compliance with State, Federal and local laws. 14 2.0 SPECIAL CITY REQUIREMENTS There is a separate packet of forms as part of these specifications that a bidder must complete to establish compliance with a number of special City of Vernon requirements, including, but not limited to, Equal Employment in Contracting and Affidavit of Non Collusion. These forms and their instructions should be considered an integral part of the specifications and failure to complete them shall be grounds, in the sole discretion of the City, for rejections of any bidder. 2.1 LIVING WAGE ORDINANCE AND PREVAILING WAGE WHERE APPLICABLE This is a prevailing wage job, see Section 1.1.9 for prevailing wage requirements. In addition, a contractor, or subcontractor, if any, working on City service contracts of any amount, as to all employees spending time on City contracts shall comply with the terms and conditions of Ordinance No. 1187, the City’s Living Wage Ordinance. The Current Living Wage Standards are set forth as part of Attachment No. 6. Upon request, certified payroll shall be provided to the City. If there is a difference between the prevailing wage and the City’s living wage, the contractor or subcontractor shall pay the highest rate. 2.2 EQUAL EMPLOYMENT OPPORTUNITY IN CONTRACTING Contractor certifies and represents that during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions set forth as part of Attachment No. 5. Required Forms – Each bidder must submit a completed Vendor List Questionnaire included in Attachment No. 5. Failure to submit this form will result in automatic disqualification with no exemptions unless bidder has an approved Form on file with the City. 2.3 AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR The City requires that each bidder executes and submits to the City with the Bid, the Affidavit of Non-Collusion included in Attachment No. 4. The Non-collusion Affidavit shall be signed under penalty of perjury, certifying that the Bid is not the result of and has not been influenced by collusion. Bidder shall submit this form with its Bid. Any Bid made without such affidavit, or believed to be made in violation of the requirements set forth in the affidavit form, may be rejected. 15 2.4 LOCAL PREFERENCES The City of Vernon is committed to promoting the economic health and well-being of its residents. To this end, contractor agrees to recruit Vernon residents initially and to give them preference, if all other factors are equal, for any new positions that result from the performance of this contract and which are performed within the City. 2.5 STORMWATER MANAGEMENT AND DISCHARGE CONTROL In addition to complying with all applicable federal, state and local laws and regulations, the Contractor shall take note of the Stormwater Management and Discharge Control Ordinance, also known as NPDES (National Pollution Discharge Elimination System) Requirements, as a material part of the work under this Contract. In addition, the Contractor shall adhere to NPDES Best Management Practices to prevent deleterious materials or pollutants from entering the City or county storm drain systems, including, but not limited to implementing the Best Management Practices specified below, and the Contractor shall comply with all directions of the City in this regard during construction: The following shall be implemented: 1. Handle, store, and dispose of materials properly. 2. Avoid excavation and grading activities during wet weather. 3. Construct diversion dikes and drainage swales around working sites. 4. Cover stockpiles and excavated soil with secured tarps or plastic sheeting. 5. Develop and implement erosion control plans (if applicable). 6. Check and repair leaking equipment away from construction sites. 7. Designate a location away from storm drains for refueling. 8. Cover and seal catch basins if work in their vicinity may allow debris or deleterious liquids to enter. 9. Use vacuum with all concrete sawing operations. 10. Never wash excess material from aggregate, concrete, or equipment onto a street. 11. Catch drips from paving equipment with drip pans or absorbent material. 12. Clean up all spills using dry methods. 16 3.0 GENERAL SPECIFICATIONS The General Specifications as they relate to this work shall be in accordance with the terms and conditions of the Sample Labor and Materials Contract included in Attachment No.6. 3.1 BID ITEMS The bid will be awarded to the responsive and responsible bidder(s) with the lowest total cost. 3.2 EVALUATION OF BID In comparing bids, consideration will not be confined to price only. The successful bidder(s) will be one whose product or service is judged to best serve the interests of the City of Vernon when price, product, safety, quality and delivery are considered. The City of Vernon reserves the right to reject any or all bid or any part thereof, and to waive any minor technicalities from the specifications. The contract award will be made from among responsive and responsible bidders meeting the City’s requirements. In order to be considered responsive, bidders must bid on all items indicated in Attachment No.3, the Unit Price Bid Form. 3.3 AWARD OF CONTRACT Evaluation of the bid will be based on the competitive bidding process. The contract will be awarded to the responsive and responsible bidder(s) with the lowest total evaluated unit price. 3.4 DURATION OF AGREEMENT The initial term for any agreement resulting from these Specifications shall be one (1) year from the date of execution by the City. The terms and conditions of agreements shall be in accordance with the Sample Labor and Material Contract included in Attachment No. 6. 3.5 SAMPLE LABOR AND MATERIALS CONTRACT The successful bidder(s) will be required to enter into a Labor and Material Contract with the City. A Sample Labor and Material Contract is included in Attachment No. 6. 3.6 LICENSE AND PERMITS Contractor shall obtain and pay for any required business license. For further information, contact Public Works, Water and Development Services Department at (323) 583-8811, Monday-Thursday between 7 a.m. and 5:30 p.m. 17 3.7 SUBSTITUTION FOR PATENTED AND SPECIFIED ARTICLES Wherever these Specifications specify any material or process by patent or proprietary name or by name of manufacturer, such specification is only for the purpose of describing the material or process desired and shall be deemed to be followed by the words “and/ or approved equivalent.” Any bidder may offer in the proposal any material or process that is equivalent in every aspect to the material or process specified. This statement of alternate unit shall clearly describe the material or process for which the substitution of alternate and shall provide technical data establishing equivalency. 3.8 EXCEPTIONS AND EXCLUSIONS No exceptions and exclusions are permitted. Contractor shall discuss and resolve all questions with the project engineer prior to bid opening. Any attachment of exceptions, exclusions or clarifications to the Bid Proposal will be deemed non-responsive. 3.9 LIABLITY INSURANCE Proof of insurance is not required to be submitted with your bid, but will be required prior to the City’s award of the contract. A copy of the standard is included as part of Attachment “6”. 18 PART II GENERAL 1.The Contractor shall provide all necessary supervision, labor, materials, tools, and equipment to perform the required work at the City of Vernon job-site. The Contractor shall meet with a designated City representative prior to starting any work. Access to a worksite shall be controlled by a designated City representative. The Contractor shall assure that all delivery vehicles are in excellent mechanical condition. 2.Standard Specifications – In connection with contracts related to the subject “Bidder’s Proposal”, and except as otherwise provided below, all work shall be done in accordance with the provisions of the 2012 edition of “STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION” (commonly known as the “GREENBOOK”), including Supplements, prepared and promulgated by Public Works Standards, Inc., a mutual benefit corporation. 3.The General Contractor shall have a supervisor in charge at the project site at all times whenever any work is in progress by the Contractor, or one or more subcontractors. Failure to comply with the preceding will be sufficient grounds for the City to stop the work and shutdown the project. 4.The primary Public Works contact person will be Vincent Rodriguez, Public Works Project Coordinator who may be contacted at (323) 583-8811 Ext. 220, e-mail vrodriguez@ci.vernon.ca.us Monday through Thursday, 7:00 a.m. to 5:30 p.m. 5.If any subcontractor or person employed by the Contractor shall appear to a designated City representative to be incompetent, intemperate, troublesome, or acts in a disorderly or otherwise objectionable manner, he/she shall be immediately discharged from the project on the requisition of the designated City representative. 6.The Director of Public Works, Water & Development Services or his representative shall at all times have access to the work and full knowledge of the process, workmanship and character of materials and equipment used in the work. The inspection of the work shall not relieve the contractor of any obligation to fulfill the contract and/or complete the project described. 7.Provide all labor, equipment, materials, tools, and supervision required to perform the work required to successfully complete this project. There is an option for the contractor to rent equipment from the sully seal material provider, see Part IV Specifications, Coordination Section of the bid documents. 19 8. Immediately notify the City of any changes in the Contractor’s insurance, permits, and licenses. Failure to do so may result in the immediate termination of this Contract for default. 9. The Contractor shall respond within 24 hours’ notification to an authorized City representative’s service request. Regular business hours are 7:00 a.m. to 5:30 p.m., Monday through Thursday. At the sole discretion of the City, a designated City representative may alter the hours and days of services. a. Holidays observed by the City of Vernon: b. New Year’s Day c. Martin Luther King, Jr. Day d. Presidents’ Day e. Memorial Day f. Independence Day g. Labor Day h. Columbus Day i. Cesar Chavez Day j. Veterans Day k. Thanksgiving Day l. Christmas Day 10. Section intentionally omitted. 11. The City will not provide storage facilities for the Contractor. The City will not be liable or responsible for any damage, by whatever means, or for theft of materials or equipment on the jobsite. 12. All debris derived from these services shall be removed from City property and become the property of the Contractor. The Contractor shall dispose of all debris from these services in a legally established area appropriate for the type of debris being disposed. Disposal shall be at the Contractor’s expense. The Contractor shall not allow any debris or materials from its operations under this contract to be deposited in the storm drains and/or gutters in violation of the National Pollution Discharge Elimination System. 13. Codes: All materials & work shall conform to the requirements of the 2012 Standard Specifications for Public Works Construction (Greenbook), and all other local, state and federal regulations. 14. Standards: A.S.T.M. designations and all other standards refer to the latest editions. 15. Site Limitations: The work, as shown the City Map, but not necessarily limited to the work as shown, includes examining the site and all conditions and limitations thereabout. Take into 20 account all such conditions and limitations, whether or not the same are specifically shown or mentioned as to be part of this work, and attain the completed conditions as indicated by the map. 16. Existing Conditions: All information shown on the map relative to existing condition is given as the best present knowledge, but without guarantee of accuracy. Where actual conditions conflict with the map, they shall be reported to the Engineer so that proper revisions may be made. Modification of details of construction shall not be made without prior written approval of the Engineer. 17. Dimensions: Dimensions indicated are the dimensions to be used for construction. Working dimensions shall not be scaled from the map, sections, details, or any other part of the map. Dimensions should be taken as noted on the map. 18. Verification: Verify all dimensions, elevations and site conditions before starting work. Notify the Engineer immediately of any discrepancies. 19. Similar Work: All details as shown on the map shall apply to all similar conditions whether referenced or not. Typical details and notes shall apply unless shown otherwise on the map. 20. Conflicts: Notes and details on the map take precedence over the General Notes and typical details in case of conflict. Omissions or conflicts between the various elements of the specifications shall be brought to the attention of the Engineer prior to proceeding with any work involved. 21. Changes to any work: Obtain prior written approval. 22. Construction Methods and Project Safety: The contract specifications represent the finished pavement and do not indicate methods, procedures or sequence of construction. The Contractor shall supervise and direct the work and shall be solely responsible for construction means, methods, techniques, sequences and procedures. 23. Permits: It shall be the responsibility of the Contractor to obtain necessary permits. There will be no charge for an encroachment permit issued by the City of Vernon. 21 PART III. SCOPE OF WORK 1. The Contractor will furnish all labor for the laydown and placement, including surface perpetration, of the Rubberized Emulsion Aggregate Slurry (REAS), taping (protection) of the manholes and valve covers, sweeping of the pavement prior to the laydown, placement of the temporary striping tabs and clean-up and any other work necessary for a complete job. 2. The slurry seal material, REAS, will be paid for by the City under separate contract, and provided by Petrochem Manufacturing Inc. (PMI). See Part IV Specifications, Coordination Section of the bid documents. 3. PMI has informed the City that it would rent the attached Equipment at the prices listed in Attachment #7. Contractor may rent the equipment from PMI, obtain the equipment from another party, or use its own equipment. City has no preference on whether bidders rent any equipment from PMI. The City merely provides this information to the extent that it may be helpful to bidders in lowering their overall bid prices. 22 PART IV. SPECIFICATIONS A. GENERAL STANDARD SPECIFICATIONS For the purpose of this contract, the “GREENBOOK” STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION (Latest Edition). Slurry materials, transportation, mixing, and application shall be per the Standard Specifications for Public Works Construction (SSPWC) 2012 Edition. CONTRACT STREETS The following streets are included in this contract for maintenance: Corona Avenue from District to Fruitland Avenue Everett Avenue from Exchange to District Blvd. Loma Vista Avenue from District to Fruitland Avenue Maywood Avenue from Exchange to District Blvd. 48th Street from Loma Vista to Corona Avenue 49th Street from west end to Corona Avenue 50th Street from Loma Vista to Gifford Avenue 50th Street from Boyle to Downey Road The streets are also shown on the Project Map, Attachment No. 8. CONTRACT LENGTH All work in this project shall be completed within three (3) days, two (2) consecutive weekends, as further described in the COORDINATION and CONSTUCTION SCHEDULE sections below subject to extensions for each day of (1) rain, fog and inclement weather. EXAMINATON OF THE SITE The bidders are required to examine the site and judge for themselves the location, physical conditions, substructures, and surroundings of the proposed work. MOBILIZATION The cost of all preparatory work and operations for the multiple movements of personnel, equipment, supplies, and incidentals to the various project sites must be included in the various bid items, and no extra compensation will be paid to the Contractor. DELAYS AND EXTENSIONS OF TIME The Provisions of Section 6-6 entitled “Delays and Extensions of Time” of the Standard 23 Specifications shall apply except as modified and supplemented below. The second paragraph of subsection 6-6.1 is hereby deleted and the following paragraph shall be inserted in its place: No extension of time will be granted for a delay caused by the inability of the Contractor to obtain materials, equipment and labor, except as authorized by the Engineer. The length of the contact time stipulated includes any time which may be require to obtain materials, equipment, and labor. The Contractor shall be deemed to have ascertained the availability of materials, equipment and labor and considered same in its construction schedule. QUALITY OF WORK The provisions of Section 4-1.1 entitled “Materials and Workmanship” of the Standard Specifications shall apply. In addition, any work deemed unacceptable by the Engineer, whether a cause is determined or not shall be repaired or replaced by the Contractor at their expense. COMPLIANCE WITH LAWS, REGULATIONS, AND SAFE PRACTICES The Contractor shall perform all work in a safe, competent manner and in accordance with all federal, state, and local statues, regulations, ordinances, rules, and governmental orders. The Contractor will be solely and completely responsible for the conditions of the job site, including safety of all persons and property during performance of the work. This requirement will apply continuously and not be limited to normal working hours. Inspection of the Contractor’s performance by the City, its agents, or employees is not intended to include review of the adequacy of the Contractor’s safety measures in or near the job site. CHARACTER OF WORKERS If any subcontractor or person employed by the Contractor shall appear to the Engineer to be incompetent, intemperate, troublesome, or acts in a disorderly or otherwise objectionable manner, he shall be immediately discharge from the project on the requisition of the Engineer, and such person shall not be reemployed on the work. If said individual has an ownership interest in the contracting entity, the Engineer will serve written notice upon the Contractor and the Surety providing the faithful performance bond, in accordance with Section 6-4, "Default by Contractor," of the Standard Specifications, demanding complete and satisfactory compliance with the Contract. PROTECTION OF THE PUBLIC The Contractor shall take such steps and precautions as his/her operations warrant to protect the public from danger, loss of life, loss of property or interruption of public services. Unforeseen conditions may arise which will require that immediate provisions be made to 24 protect the public from danger or loss, or damage to life and property, due directly or indirectly to prosecution of work under this contract. Whenever, in the opinion for the Engineer, a condition exists which the Contractor has not taken sufficient precaution of public safety, protection of utilities and/or protection of adjacent structures or property, the Engineer will order the Contractor to provide a remedy for the condition. If the Contractor fails to act on the situation within a reasonable time period as determined by the Engineer, or in the event of an emergency situation, the Engineer may provide suitable protection by causing such work to be done and material to be furnished as, in the opinion of the Engineer, may seem reasonable and necessary. The cost and expense of all repairs (including labor and materials) as are deemed necessary, shall be borne by the Contractor. All expenses incurred by the City for emergency repairs will be deducted from the final payment due to the Contractor. COORDINATION The contractor shall coordinate the work with Petrochem Manufacturing Inc. (PMI), who will be the supplier of the Rubberized Emulsified Asphalt Slurry (REAS) for a minimum of two consecutive weekends. This will include the staging areas, costs for the sweeping, taping (protection) of the manholes and valve covers, transfer and placement of the REAS material, placement of the temporary striping tabs, clean-up and related work. The Contact for PMI: Greg Montefiore- Petrochem Manufacturing Inc. (PMI) (310) 291-2134 Additionally, the contractor shall coordinate with all necessary City personnel and crews when necessary. TRAFFIC CONTROL The traffic control on the street will be supplied by the City of Vernon Public Works Department. Streets scheduled for slurry each day will be completely closed. PROHIBITED PARKING IN WORK AREA All traffic and parking signs will be provided and posted by the City. The City of Vernon Public Works Department will provide the 72 hours’ notice for parking restrictions. CONSTRUCTION SCHEDULE The schedule for the laydown is for two consecutive weekends (two Saturdays and one Sunday). Work will take place on Saturday September 13, 2014, Sunday September 14th, and Saturday September 20th CONSTRUCTION HOURS The proposed laydown of the Rubberized Emulsion-Aggregate Slurry (REAS) seal work done shall occur on Saturday and/or Sunday between the hours of 7:00 a.m. to 1:00 p.m. Once 25 placement of the striping tabs are completed, the Contractor shall notify the City of Vernon that Contractor is ready for the City of Vernon to open the streets to traffic. City of Vernon will be responsible for opening the street to traffic. Streets shall be opened to through traffic no later than 5:30 p.m. If for any reason Contractor begins work before 7:00 a.m., or continues work after 5:30 p.m., Contractor shall pay to the City $125 of liquidated damages per 15 minute increment during which the street should be open, but is not. CONSTRUCTION ACTIVITIES COORDINATION The Contractor shall notify the City of Vernon Community Services & Water Department, Police Department, Fire Department, Utility Companies of the proposed work and coordinate all work under this contract with all Utilities and Public Agencies. MATERIAL SUBMITTALS There will be no material submittals as part of this contract agreement. MATERIAL AND EQUIPMENT STORAGE AREAS There will be no material or equipment storage areas as part of this contract agreement. All equipment shall be removed on a daily basis. PUBLIC CONVENIENCE The Contractor shall conduct operations to minimize the obstruction of access and inconvenience to the public and the City of Vernon Fire Department. DUST CONTROL The Contractor shall abate dust nuisance by supplying a power street sweeper with water spraying capability. TEMPORARY WATER METER Contractor shall obtain a temporary water meter from the City of Vernon Water Department by placing a deposit of $1,000.00. Contractor shall pay for all water used. Contractor shall not relocate the service. The Contractor shall call the City of Vernon Water Department to relocate the service and will be charged $50.00 for each relocation. PRIVATE OR PUBLIC PROPERTY DAMAGE Any damage to private or public property caused by the Contractor shall be repaired or replaced at no cost to the City. Repairs and replacements shall be at least equal to existing improvements and shall match in materials, finish and dimensions. CLEANING OF THE SITE DURING CONSTRUCTION 26 During construction, all existing improvements adjacent to the proposed slurry pavement shall be swept free from asphalt, soils, gravel, dirt or debris on a daily basis. The Contractor shall also make all necessary efforts to minimize the tracking of the fresh tack coat oil and loose asphalt aggregates on to existing improvements (sidewalks, driveways, curb and gutters, and private property). The Contractor will be responsible for such cleaning. FINAL CLEANING OF CONSTRUCTION SITE AND RESTORATION The Contractor shall be responsible for cleaning and restoration of all damaged or tracking of tack coat oil or excessive slurry on existing improvements such as sidewalk, driveway, curb and gutter, and private property at no cost to the City. The cost of furnishing and operating such sweeping after the construction of the project must be included in the various bid items, and no extra compensation will be paid to the Contractor. SANITARY FACILITIES The Contractor shall furnish and maintain sanitary facilities by the worksites for the entire construction period. B. PROPOSED RUBBERIZED EMULSION-AGGREGATE SLURRY (REAS) SEAL, TYPE II NOTIFICATION, POSTING AND SCHEDULE CHANGES Notification and Posting: The City shall deliver "Notice to Businesses and Residents" 7 days prior to the sealing of the street. The posting of "No Parking Tow Away" signs 72 hours prior to sealing will be performed by the City of Vernon. Schedule Changes There will be no requests for changes in the schedule by the contractor. Failure to meet the notified schedule will result in liquidated damages of $1,500 per day. RESPONSIBILITY The City will be responsible for the advance notification of businesses and residents. The Contractor will sweep and cover and protect valves and manholes in the streets to be sealed prior to applying slurry. 27 The Contractor will place temporary striping tabs after the placement of the slurry. The City will remove any street markings (thermoplastic) before the placement of the slurry. The City will purchase the REAS material from PMI and have it delivered to the job site. The City will place barricades, delineators, signs, flashers, and traffic control devices. The City will provide flagmen while slurry operations are in progress. The City of Vernon shall not be held responsible for the care or protection of any material or parts of the work prior to the Final Acceptance. PREPARATION OF THE EXISTING PAVEMENT SURFACE General: Prior to applying REAS slurry, all vegetation will be sprayed with Roundup and removed from cracks in the pavement and joints between the pavement and concrete gutters by the City. Manholes, valve boxes, drop inlets and other service entrances will be protected from the slurry seal by a suitable method by the Contractor. The Engineer shall approve the surface preparation prior to sealing. Street Sweeper: Contractor shall furnish a power street sweeper with operator to clean the asphalt pavement the same day the street is sealed. The sweeper shall have a steel gutter broom and a rear plastic broom, and three (3) yard minimum capacity hopper. When water is used, cracks will be allowed to dry thoroughly before slurry sealing. The Engineer shall approve the surface preparation prior to sealing. Manholes, valve boxes, drop inlets and other service entrances will be protected from the slurry seal by a suitable method. The Engineer shall approve the surface preparation prior to sealing. APPLICATION The surface should be pre-wetted by fogging ahead of the slurry box when required by local conditions. Water used in pre-wetting the surface shall be applied such that the entire surface is damp with no apparent flowing water in front of the slurry box. The rate of application of the fog spray shall be adjusted during the day to suit temperatures, surface texture, 28 humidity and dryness of the pavement surface. The slurry mixture shall be of the desired consistency upon leaving the central mix plant and no additional materials shall be added. A sufficient amount of slurry shall be carried in all parts of the spreader at all times so that a complete coverage is obtained. Overloading of the spreader shall be avoided. No lumping, balling or unmixed aggregate shall be permitted. In placing slurry, the slurry machine shall move no faster than 150' a minute, or when chatter marks appear. No streaks, such as those caused by oversized aggregate, will be left in the finished surface. If excess oversize develops, the job will be stopped until Contractor proves to the Engineer that the situation has been corrected. REAS Slurry Crew: Each slurry crew shall be composed of a English-speaking coordinator at the project site at all times, a competent quick-set mixing person, a competent licensed driver, two (2) squeegee men, and sufficient laborers for any handwork, cleanup, and traffic control. Joints: No excessive buildup, uncovered areas or unsightly appearance shall be permitted on longitudinal or transverse joints. An excessive overlap will not be permitted on longitudinal joints. Contractor shall provide suitable width spreading equipment to produce a minimum number of longitudinal joints throughout the project. When possible, longitudinal joints shall be placed on lane lines. Half passes and odd width passes will be used only in minimum amounts. If half passes are used, they shall not be the last pass of any paved area. Mix Stability: The slurry mixture shall possess sufficient stability so that premature breaking of the slurry seal in the spreader box does not occur. The mixture shall be homogeneous during and following mixing and spreading, it shall be free of excess water or emulsion and free of segregation of the emulsion and aggregate fines from the coarser aggregate. Hand Work: Areas which cannot be reached with the slurry seal machines shall be surfaced using hand squeegees to provide complete and uniform slurry seal coverage. The area to be hand worked shall be lightly dampened prior to mix placement and the slurry worked immediately. Care shall be exercised to leave no unsightly appearance from handwork or to overwork the mix. The same type finish as applied by the spreader box shall be required. Handwork shall be completed during the machine applying process. Lines: 29 Care shall be taken to insure straight lines along gutters. No runoff on these areas will be permitted. Join lines at intersections will be kept straight to provide a good appearance. Clean-up: Contractor is responsible for cleaning the REAS slurry and the tracking of the fresh oil on the existing improvements such as sidewalks, driveways, curb and gutters, private property, etc. The contractor shall also remove any debris associated with the work on a daily basis. The cost of furnishing labor and material for such cleaning shall be included in the contract, and no extra compensation will be paid to the Contractor. 30 ATTACHMENTS 1.Attachment No. 1 – Bidder’s Checklist 2.Attachment No. 2 – Signature Page, Legal Status, and Acknowledgement of Addenda 3.Attachment No. 3 – Bid Form 4.Attachment No. 4 – Affidavit of Non-Collusion 5.Attachment No. 5 – Vendor List Questionnaire 6.Attachment No. 6 – Sample Labor and Materials Contract 7.Attachment No. 7 – PMI Equipment Rental Cost 8.Attachment No. 8 – Project Map 31 ATTACHMENT NO. 1 BIDDER’S CHECKLIST TO THE BIDDER: The following list is provided for the convenience of both you and the City and help eliminate errors and omissions which may render your bid unacceptable. Please check all appropriate boxes and submit with your bid. ATTACHMENT NO. 1 - BIDDERS CHECKLIST ATTACHMENT NO. 2 - SIGNATURE PAGE, LEGAL STATUS AND ACKNOWLEDGEMENT OF ADDENDA ATTACHMENT NO. 3 - BID FORM ATTACHMENT NO. 4 - AFFIDAVIT OF NON-COLLUSION FORM ATTACHMENT NO. 5 - VENDOR LIST QUESTIONNAIRE FORM ATTACHMENT NO. 6 - SAMPLE LABOR AND MATERIALS CONTRACT Bidder must submit ONE ORIGINAL AND TWO COPIES. All bids shall be enclosed in sealed envelopes, distinctly marked “Bid” with the title of the bid and the bidder’s name address appearing on the outside. Bids should be addressed to: City Clerk 4305 Santa Fe Avenue Vernon, CA 90058 Mail sufficiently early or deliver in person before 2:00 p.m. on the day listed in the Notice Inviting Bids. Bids must be received in the City Clerk’s Office before that time. At the bid opening, the City Clerk shall open bid package, acknowledge the receipt of the Bid Form from manufacturer/Supplier. Once all bid packages are opened and announced, the Unit Price Bid Forms will be made available for public review. 32 ATTACHMENT NO. 2 SIGNATURE PAGE, LEGAL STATUS AND ACKNOWLEDGEMENT OF ADDENDA The Bid shall be signed by an authorized signatory with his/her usual wet ink signature. An authorized signatory shall be one of the following: (1) Sole Proprietorship: An individual shall sign. (2) Partnership (General or Limited): A partner shall sign for a partnership; the partner shall give the names and addresses of all partners. (3) Corporation: An officer shall sign for a corporation. The corporate name must be attested by the corporate seal. The names and titles of the president and all officers of the corporation who are authorized to sign the Bid Forms must be listed in an authenticated incumbency certificate signed by the corporate secretary. A signature other than a corporate officer’s will be accepted only if an authenticated incumbency certificate and corporate resolution conferring signature authority is attached. (4) Joint Venture: Bidders shall use the appropriate section(s) listed above based on their applicable situation. The undersigned certifies that he/she is an official legally authorized to bind his/her firm and to enter into a contract should the City accept this bid. Bid by _____________________________________________________________ (Name of Firm) Legal status of bidder: Please check the appropriate box _____ Corporation State of Incorporation ______________________________ _____ Partnership List Names _______________________________________ _____________________________________ _____ DBA State full name _________________________________DBA ___________________________________________ ___________________________________________ _____ Other Explain ___________________________________________ ___________________________________________ ___________________________________________ Respectfully submitted: Signature of Bidder ___________________ Title ___________________________ (Authorized Signature) 33 Address __________________________ City _________ State ______ Zip ________ Telephone No. ( ) ___________________________________________________ License Number: _______________________ Date of Expiration: _______________ Date: ______________________ (SEAL - if Bid is by a corporation) ADDENDUM NO. BIDDER’S INITIALS 1.____________________________ 2.____________________________ 3.____________________________ 34 INCUMBENCY CERTIFICATE Print legibly the names and title of the president and all officers of the Company who are authorized to sign the Bid Forms: PRESIDENT’S AND OFFICERS’ NAMES: TITLE: _____________________________________ ______________________________ _____________________________________ ______________________________ _____________________________________ ______________________________ _____________________________________ ______________________________ The undersigned hereby certifies to the City of Vernon that he/she is the duly elected and acting Secretary of _______________________________________ (the “Company”), and that, as such, he/she is authorized to execute this Incumbency Certificate on behalf of the Company, and further certifies that the persons named above are the duly elected, qualified and acting officers of the Company, holding on the date hereof, the titles and positions set forth opposite their names and are authorized to sign the Bid Forms. IN WITNESS WHEREOF, the undersigned has executed this Incumbency Certificate this ______ day of _____________, 20__. _______________________ Print Secretary’s Name _______________________ Secretary’s Signature 35 ATTACHMENT NO. 3 BID FORM LABOR AND EQUIPMENT FOR PLACEMENT OF TYPE II SLURRY (REAS) FOR THE DEPARTMENT OF PUBLIC WORKS, WATER & DEVELOPMENT SERVICES LUMP SUM BID Pursuant to and in compliance with the Notice Inviting Bids and all attachments and contract documents relating to the Project including all Addenda, Bidder, having become thoroughly familiar with the terms and conditions of the project and with local conditions affecting the performance and the costs of the Work at the place where the Work is to be done, hereby proposes and agrees to fully perform the Work within the time stated in strict accordance with the bidding and contract documents (including the furnishing of any and all labor, materials, tools, expendable equipment, and utility and transportation services and coordination necessary to fully perform the Work and complete it in a workmanlike manner) for the total Lump Sum of: ________________________________________________ Dollars ($_____________________) Words Arabic figures All other work items, labor, materials, tools and incidentals which are not specifically listed in the above bid items, but are necessary to complete the project per specifications, and all other applicable standards and codes are considered to be included in the above bid items. If there is any discrepancy between the “words” listed above and the “Arabic figures” listed above, the words shall control. 36 ATTACHMENT NO. 4 AFFIDAVIT OF NON-COLLUSION CONTRACTOR STATE OF CALIFORNIA }SS COUNTY OF LOS ANGELES} _________________________________________________________________, being first duly sworn deposes and says that he/she is __________________________________________________________________ (Insert “Sole Owner”, “Partner”, “President”, “Secretary”, or other proper title) of __________________________________________________________________________________ (Insert name of bidder) who submits herewith to the City or Vernon a proposal; That all statements of fact in such proposal are true; That such proposal was not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; That such proposal is genuine and not collusive or sham; That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of proposals, said bidder: a.Did not directly or indirectly, induce or solicit anyone else to submit a false or sham proposal; b.Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham proposal, or that anyone should refrain from bidding or withdraw his proposal; c.Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the proposal price of said bidder or of anyone else, or to raise of fix any overhead profit or cost element of this proposal price, or of that of anyone else; d.Did not, directly or indirectly, submit his proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to nay corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, or to any individual or group of individuals, except the City of Vernon, or to any person or persons who have a partnership or other financial interest with bidder in his business. I certify under penalty of perjury that the above information is correct By: ___________________________________ Title: _______________________________________ Date: _________________________________ 37 ATTACHMENT NO. 5 VENDOR LIST QUESTIONAIRE CITY OF VERNON 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 Affidavit of Equal Opportunity & Non Segregation In order to be placed to the City’s vendor list and be eligible to receive City business, you must provide the following information except where indicated as “optional”. By submitting this form you are declaring under penalty of perjury under the laws of the State of California and the laws of the United States that the information is true and correct. Furthermore, you are certifying that your firm will adhere to equal opportunity employment practices to assure that applicants and employees are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex or age. And, your firm does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform their services at any location, under its control, where segregated facilities are maintained. Name of Company ____________________ Business Telephone ______________ Address ______________________________ Fax Number _____________________ (optional) City ________________________________ State __________ Zip _______________ Contact Person _________________ E-mail Address _________________________ Tax ID Number (or Social Security Number) ________________________________ Remit Address (if different) ______________________________________________ Please state clearly and concisely the type(s) of goods and services your company provides: ______________________________________________________________________________ ______________________________________________________________________________ 38 ATTACHMENT NO. 6 LABOR AND MATERIALS CONTRACT BETWEEN THE CITY OF VERNON AND [CONTRACTOR’S NAME] COVER PAGE Contractor: [insert name of contractor] Responsible Principal of Contractor: [insert name, title] Notice Information - Contractor: [insert name of contractor] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: [insert department head] [insert department head title] Telephone: (323) 583-8811 ext. [insert] Facsimile: [insert fax number] Commencement Date: [insert commencement date] Termination Date: [insert termination date], unless extended pursuant to the Contract Consideration: Total not to exceed $[insert amount] (includes all applicable sales tax) Records Retention Period Three (3) years 39 THIS Contract is made between the CITY OF VERNON ("City"), a California charter City and California municipal corporation, and [Contractor’s Name], a [State incorporated in] corporation (“Contractor”) The City and Contractor agree as follows: 1.0 CONTRACT DOCUMENTS The “Contract Documents” except for modifications issued after execution of this Agreement, shall consist of the following documents which are either attached hereto as exhibits or are incorporated into this Agreement by this reference, with the same force and effect as if set forth at length herein: A. Governmental Approvals including, but not limited to, permits required for the Work; B. This Agreement; C. Performance Bond; D. Payment Bond; E. If required; Maintenance Bond; F. Insurance Requirements; G. If required; Contractor Submittal Log and List of Submittals Required; H. Baseline Project Schedule; I. Preliminary Schedule of Values; J. Forms Required for Compliance with Labor Law Requirements; K. Notice Inviting Bids; L. Instructions to Bidders; M. Bid Forms; N. Designation of Subcontractors; O. Bidding Addenda Nos. _____; and P. Standard Specifications for Public Works Construction, 2012 Edition (Greenbook) 40 2.0 REFERENCE DOCUMENTS The following Reference Documents are not considered Contract Documents and were provided to the Contractor for informational purposes. Contractor may rely upon the technical data contained in such documents but not upon non-technical data, interpretations, opinions or provisional statements contained therein: A. Geotechnical Reports dated ______________________; B. Sewer Utility Plans C. {List additional documents} 3.0 SCOPE OF WORK Within the Contract Time and for the stated Contract Sum, subject to adjustments thereto, and pursuant to the Contract Documents, the Contractor shall perform and provide all necessary: labor; services; supervision; materials; tools; equipment; apparatus; facilities; supplies; tools; permits, inspections, plan checks, and similar Governmental Approvals; temporary utilities; utility connections; and transportation necessary to complete the Work in strict conformity with the Contract Documents for: {INSERT PROJECT NAME} Specification No. XXXX 4.0 TIME FOR PERFORMANCE Contract Time. Contractor shall achieve Substantial Completion of the Work within ______ calendar days from the Date of Commencement established in City’s written Notice to Proceed (“Contract Time”), subject to adjustment in accordance with the Contract Documents. Contractor shall achieve Final Completion of the Work, within the time established by the Certificate of Substantial Completion issued by the City. The Contract Time may only be adjusted as permitted by this Construction Contract and the General Conditions. Time is of the essence of this Agreement. Except when the Contract Documents state otherwise, time is of the essence in the performance of the Work. Contractor acknowledges that the time limits and deadlines set forth in the Contract Documents are reasonable for Contractor to perform and complete the Work. 5.0 CONTRACT SUM AND CONDITIONS 5.1 In consideration of the Contractor’s full, complete, timely, and faithful performance of the Work required by the Contract Documents, City shall pay Contractor the sum of _________________ dollars/no cents ($________________) (“Contract Sum”). The actual 41 direct cost of all Permit Fees is excluded from the Contract Sum, however Contractor’s cost of administration and coordination of all Governmental Approvals and Utility Fees is included in the Contract Sum. 5.1.1 Retention. ln addition to any other withholdings permitted by this Contract, a sum equal to five percent (5%) of all sums otherwise due to Contractor as progress payments shall be withheld by city from each progress payment (“Retention”) and retained until such time as it is due as described herein. A higher Retention amount may be approved by the City Council where project is deemed “substantially complex” by City Council 5.1.2 Disputed Amounts. Pursuant to California Public Contract Code 7107, City may deduct and withhold from the Final Payment due, an amount up to 150% of any disputed amounts, including, without limitation, amounts to protect City against any loss caused or threatened as a result of Contractor's failing to fully perform all of those obligations that are required to be fulfilled by Contractor as a condition to Final Completion and Final Payment. Alternatively, City may elect, in its sole discretion, to accept the Work without correction or completion and adjust the Contract Sum pursuant to the Contract Documents. 5.1.3 Acceptance of Final Payment. Acceptance of Final Payment by Contractor shall constitute a waiver of all rights by Contractor against City for recovery of any loss, excepting only those Claims that have been submitted by Contractor in the manner required by the Contract Documents prior to or at the time of the Final Payment 5.1.4 Withholding by City. In addition to any other amounts which City may have the right to retain under the Contract Documents, City may withhold a sufficient amount of any payment otherwise due to Contractor as City, in its sole discretion, may deem necessary to cover actual or threatened loss due to any of the following: 1.Third Party Claims. Third-party claims or stop notices filed or reasonable evidence indicating probable filing of such claims or stop notices. City shall promptly inform Contractor of any third party claims related to this Contract; 2.Defective Work. Defective Work not remedied; 3.Nonpayment. Failure of Contractor to make proper payments to its Subcontractors for services, labor, materials or equipment; 4.Inability to Complete. Reasonable doubt that the Work can be completed for the then unpaid balance of the Contract Sum or within the Contract Time; 5.Violation of Applicable Laws. Failure of Contractor or its Subcontractors to comply with applicable laws or lawful orders of governmental authorities; 42 6.Penalty. Any claim or penalty asserted against City by virtue of Contractor’s failure to comply with applicable laws or lawful orders of governmental authorities (including, without limitation labor laws); 7.Failure to Meet Contract Time. Any damages which may accrue as a result of Contractor failing to meet the Construction Schedule or failing to perform within the Contract Time; 8.Setoff. Any reason specified elsewhere in the Contract Documents as grounds for a withholding offset or set off or that would legally entitle City to a set-off or recoupment; 9.Consultant Services. Additional professional, consultant or inspection services required due to Contractor’s failure to comply with the Contract Documents; 10.Liquidated Damages. Liquidated damages assessed against Contractor; 11.Materials. Materials ordered by City pursuant to the Contract Documents; 12.Damages. Loss caused by Contractor or Subcontractor to City, Separate Contractors or any other person or entity under contract to City; 13.Clean Up. Clean up performed by City and chargeable to Contractor pursuant to the Contract Documents; 14.Employee Benefits. Failure of Contractor to pay contributions due and owing to employee benefits funds pursuant to any applicable collective bargaining agreement or trust agreement; 15.Required Documents. Failure of Contractor to submit on a timely basis, proper and sufficient documentation required by the Contract Documents, including, without limitation, Construction Schedule updates, ‘look ahead’ schedules, Submittals, Schedules of Values, information on Subcontractors, Change Orders, certifications and other required reports or documentation; and 16.Other Breach. A breach of any obligation or provision of the Contract Documents. 5.1.4.1 Release of Withholding. If and when City determines, in its sole discretion, that the above grounds for withholding have been removed and that all losses incurred or threatened have been paid, credited or otherwise satisfied, then payment shall be made for amounts withheld because of them. 43 5.1.4.2 Application of Withholding. City may apply sums withheld pursuant to this Contract, in payment of any loss or threatened loss as City determines, in its sole discretion, to be appropriate. Such payments may be made without a prior judicial determination of City’s actual rights with respect to such loss. Contractor agrees and hereby designates City as its agent for such purposes, and agrees that such payments shall be considered as payments made under Construction Contract by City to Contractor. City shall not be liable to Contractor for such payments made in good faith. City shall submit to Contractor an accounting of such funds disbursed on behalf of Contractor. As an alternative to such payment, city may, in its sole discretion, elect to exercise its right to adjust the Contract Sum as provided in the Contract Documents. 5.1.4.3 Continuous Performance. Provided City pays the undisputed portion, if any, of funds withheld in good faith, Contractor shall maintain continuous and uninterrupted performance of the Work during the pendency of any disputes or disagreements with City. 5.2 Contractor shall furnish all necessary and incidental labor, material, equipment, transportation and services as described in, and strictly in accordance with, and subject to all terms and conditions set forth in Specifications for _______________________, as more fully set forth in the Scope of Services, attached hereto and incorporated herein as Exhibit “A”. 5.3 All work shall be done in a manner satisfactory to the City’s Director of Community Service and Water (“Director”), or the Director’s designee, in writing, and shall be of highest quality with respect to _________________________________________. 5.4 In the event Contractor fails to perform satisfactorily the City shall advise Contractor in writing, and Contractor shall have thirty (30) days to cure such failure to satisfactorily perform. If Contractor fails to so cure its performance within said 30 days, the City may, at its option, terminate this Contract for default without further liability, other than payment to Contractor for work performed satisfactorily prior to the date of termination. 44 6.0 LIQUIDATED DAMAGES 6.1 Contractor and City agree to liquidate damages in the amount of _________ dollars ($_____) per day, with respect to Contractor’s failure to achieve Substantial Completion of the Work within the Contract Time. The Parties intend for the liquidated damages set forth herein to apply to this Contract as set forth in Government Code Section 53069.85. Contractor acknowledges and agrees that the liquidated damages are intended to compensate City solely for Contractor’s failure to meet the deadline for Substantial Completion and shall not excuse Contractor from liability from any other breach, including any failure of the Work to conform to the requirements of the Contract Documents. Contractor shall also be obligated to pay any liquidated damages as stated in the Contract Documents. 6.2 In the event that Contractor fails to achieve substantial completion of the Work within the contract time, Contractor agrees to pay City the amount specified herein for each calendar day that substantial completion is delayed. 6.3 Contractor and City acknowledge and agree that the foregoing liquidated damages have been set based on an evaluation of damages that the City will incur in the event of late completion of the Work. Contractor and City acknowledge and agree that the amount of such damages are impossible to ascertain as of the effective date hereof and have agreed to such liquidated damages to fix City’s damages and to avoid later disputes. It is understood and agreed by Contractor that liquidated damages payable pursuant to this Agreement are not a penalty and that such amount are not manifestly unreasonable under the circumstances existing as of the effective date of this Agreement. 6.4 It is further mutually agreed that City shall have the right to deduct liquidated damages against progress payments or retainage and that the City will issue a Construction Change Directive and reduce the Contract Sum accordingly. In the event the remaining unpaid Contract Sum is insufficient to cover the full amount of liquidated damages. Contractor shall pay the difference to City. Contractor Initial here: _________. 7.0 TERMS AND CONDITIONS. 7.1 INDEPENDENT CONTRACTOR. 7.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent or employee of City and shall furnish such services in its own manner and method except as required by this Contract. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. Contractor shall be solely responsible 45 for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 7.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 7.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 7.3 OWNERSHIP OF WORK. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. 7.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy or incompleteness. 7.5 WAIVER. The City's waiver of any term, condition, breach or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 7.6 SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors and/or assigns. 7.7 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties or otherwise constitute a novation. 46 7.8 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 7.9 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 8.0 INTERPRETATION. 8.1 APPLICABLE LAW. This Contract, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed by and construed according to the laws of the State of California. 8.2 ENTIRE AGREEMENT. This Contract, including any Exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 8.3 WRITTEN AMENDMENT. This Contract may only be changed by written amendment signed by Contractor and the City Manager or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Contract shall be of no force or effect. 8.4 SEVERABILITY. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 8.5 ORDER OF PRECEDENCE. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Specifications shall control over the Contractor's bid. 8.6 CHOICE OF FORUM. The parties hereby agree that this Contract is to be enforced in accordance with the laws of the State of California, is entered into in the City of Vernon and that all claims or controversies arising out of or related to performance under this Contract shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 8.7 DUPLICATE ORIGINALS. There shall be two (2) fully signed copies of this Contract, each of which shall be deemed an original. 47 8.8 TIME OF ESSENCE. Time is strictly of the essence of this Contract and each and every covenant, term and provision hereof. 8.9 AUTHORITY OF CONTRACTOR. The Contractor hereby represents and warrants to the City that the Contractor has the right, power, legal capacity and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 8.10 ARBITRATION OF DISPUTES. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 8.11 RELEASE. Contractor agrees to release and covenants not to sue the City, its City Council and each member thereof, and its officers, employees, commission members and representatives for any damage or injury (including death) to itself, its officers, employees, agents and independent contractors damaged or claiming to be damaged from any performance under this Contract. 9.0 INDEMNITY, INSURANCE, AND BONDS 9.1 INDEMNITY. Contractor agrees to indemnify, hold harmless and defend (even if the allegations are false, fraudulent or groundless), to the maximum extent permitted by law, the City, its City Council and each member thereof, and its officers, employees, commission members and representatives, from any and all liability, loss, suits, claims, damages, costs, judgments and expenses (including attorney's fees and costs of litigation) which in whole or in part result from, or arise out of, or are claimed to result from or to arise out of: A. any activity on or use of City's premises or facilities or any performance under this Contract; or B. any acts, errors or omissions (including, without limitation, professional negligence) of Contractor, its employees, representatives, subcontractors, or agents in connection with the performance of this Contract. This agreement to indemnify includes, but is not limited to, personal injury (including death at any time) and property or other damage (including, but without limitation, contract or tort or patent, copyright, trade secret or trademark infringement) sustained by any person or persons (including, but not limited to, companies, or corporations, Contractor and its employees or agents, and members of the general public). The sole negligence or willful misconduct of City, 48 its employees or agents other than Contractor or Contractor’s subcontractors are excluded from this indemnity agreement. 9.2 INSURANCE. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Contract, including any extensions thereto. The policies shall state that they afford primary coverage. INSURANCE OBLIGATION IS SEPARATE FROM INDEMNITY OBLIGATION. This Agreement’s insurance provisions are separate and independent from the indemnification and defense provisions herein; and do not limit, in any way, the applicability, scope, or obligations of the indemnification and defense provisions in this Agreement. 9.2.1 Automobile Liability with minimum limits of at least $100,000/300,000/50,000 if written on a personal automobile liability form, for using a personal vehicle; or an amount of $500,000 including owned, hired, and non-owned liability coverage if written on a Commercial automobile liability form. 9.2.2 General Liability with minimum limits of at least $1,000,000 combined single limits written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Contractor's performance of this Contract. A. If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. B. Blanket Contractual Coverage. C. Products/Completed Operations coverage. 9.2.3 Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: 49 A. Provide copy of permissive self-insurance certificate approved by the State of California; or B. Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or C. Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Contract. 9.2.4 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. 9.2.5 Insurance shall be placed with insurers with a Best's rating of no less than B:VIII. 9.2.6 Prior to commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 9.2.7 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or (c) self insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due Contractor. 50 9.3 REQUIRED BONDS. 9.3.1 Contractor shall furnish the following bonds: A. A Performance Bond in an amount equal to one hundred percent (100%) of the total Contract price. B. A Payment Bond (Labor and Material) in an amount equal to one hundred percent (100%) of the total Contract price. 9.3.2 Power of Attorney. All bonds shall be accompanied by a power of attorney from the surety company authorizing the person executing the bond to sign on behalf of the company. If the bonds are executed outside the State of California, all copies of the bonds must be countersigned by a California representative of the surety. The signature of the person executing the bond on behalf of Surety shall be acknowledged by a Notary Public as the signature of the person designated in the power of attorney. 9.3.3 Approved Surety. All bonds must be issued by a California admitted surety insurer with the minimum A.M Best Company Financial strength rating of “A: VII”, or better. Bonds issued by a California admitted surety not listed on Treasury Circular 570 will be deemed accepted unless specifically rejected by the City. Bonds issued from admitted surety insurers not listed in Treasury Circular 570 must be accompanied by all documents enumerated in California Code of Civil Procedure Section 995.660. All such bonds must be accompanied by a power of attorney from the surety company authorizing the person executing the bond to sign on behalf of the company. If the bonds are executed outside the State of California, all copies of the bonds must be countersigned by a California representative of the surety. The signature of the person executing the bond on behalf of Surety must be acknowledged by a Notary Public as the signature of the person designated in the power of attorney. 9.3.4 Required Provisions. Every bond must display the surety’s bond number and incorporate the Contract for construction of the Work by reference. The terms of the bonds shall provide that the surety agrees that no change, extension of time, alteration, or modification of the Contract Documents or the Work to be performed thereunder shall in any way affect its obligations and shall waive notice of any such change, extension of time, alteration, or modification of the Contract Documents. 9.3.5 New or Additional Sureties. If, during the continuance of the Contract, any of the sureties, in the opinion of the City, are or become non-responsible or otherwise unacceptable to City, City may require other new or additional sureties, which the Contractor shall furnish to the satisfaction of City within ten (10) days after notice. 9.3.6 Waiver of Modifications and Alterations. No modifications or alterations made in the Work to be performed under the Contract or the time of performance shall operate to release 51 any surety from liability on any bond or bonds required to be given herein. Notice of such events shall be waived by the surety. 9.3.7 Approval of Bonds. The Contract will not be executed by City nor the Notice to Proceed issued until the required bonds have been received and approved by City. City's decision as to the acceptability of all sureties and bonds is final. No substitution of the form of the documents will be permitted without the prior written consent of City. 10.0 NOTICES. Any notice or demand to be given by one party to the other shall be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. If to the City: City of Vernon 4305 Santa Fe Ave. Vernon, CA 90058 With a Copy to: If to the Contractor: Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 11.0 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 12.0 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. 52 Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of (1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. 13.0 ASSIGNMENT OF ANTITRUST CAUSES OF ACTION. Contractor hereby 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. Sec 15) or under the Cartwright Act Chapter 2 (Commencing with Section 16700) or part 2 of Division 7 of the Business and Professions Code, or any similar or successor provisions of Federal or State law, arising from purchases of goods, services or materials pursuant to this Contract or the subcontract. This assignment shall be made and become effective at the time the City tenders final payment to the Contractor, without further acknowledgment by the parties. 14.0 ADDITIONAL ASSURANCES 14.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this contract, the contractor and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit “E”. 14.2 VERNON BUSINESS LICENSE. Contractor shall obtain, and pay any and all costs associated therewith, any Vernon Business License which may be required by the Vernon Municipal Code. 14.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least 3 years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location 53 other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead. 14.4 CONFLICT. Contractor hereby represents, warrants and certifies that no member, officer or employee of the Contractor is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. 14.5 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1½ times the basic rate of pay. 14.6 LIVING WAGES. Contractor, or Subcontractor, if any, working on City service contracts of any amount, as to all employees spending time on City contracts shall observe the City’s Living Wage Ordinance and all requirements thereof at all times on City contracts. The Current Living Wage Standards are set forth in Exhibit “D”. Upon request, certified payroll shall be provided to the City. [Signatures Begin on Next Page]. 54 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date stated in the introductory clause. City of Vernon, a California charter City and California municipal corporation By:____________________________ Mark Whitworth, City Administrator [CONTRACTOR’S NAME, a [State incorporated in] corporation By: Name: Title: CONTRACTOR’S SIGNATURE MUST BE NOTARIZED ATTEST: _______________________________ Ana Barcia, Deputy City Clerk By: Name: Title: APPROVED AS TO FORM: _______________________________ Scott Porter, Deputy City Attorney 55 EXHIBIT A SCOPE OF SERVICES 56 EXHIBIT B PROPOSAL 57 EXHIBIT C SCHEDULE OF WORK 58 EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer’s compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney’s fees, or to compel City officials to terminate the service contract of violating employers. 59 EXHIBIT E EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. 60 ATTACHMENT NO. 7 PMI EQUIPMENT RENTAL COST NO. DESCRIPTION QUANTITIES UNIT TYPE UNIT COST ($) COST ($) ITEM ESTIMATE $ 1 Applicator Trucks (Two Trucks need per day) 6 TRUCK $2,520.00 $15,120.00 $15,120.00 2 One (1) Service Truck w/Pumper (One Truck needed per day) 3 TRUCK $475.00 $1,425.00 $1,425.00 3 One (1) Slurry Pump 3 UNIT $500.00 $1,500.00 $1,500.00 4 One (1) Slurry Box (One needed per day) 3 UNIT $250.00 $750.00 $750.00 5 Transport Trailers 18 LOAD $150.00 $2,700.00 $2,700.00 Total Estimated Equipment Charges $21,495.00 61 ATTACHMENT NO. 8 PROJECT MAP SC A L E I N F E E T 0 6 0 0 CI T Y O F V E R N O N 25TH STREET 27TH STREET28TH STREET30TH STREET ROSS STREET 26TH STREET37TH STREET38TH STREETVERNON AVENUE45TH STREET46TH STREET 48TH STREET49TH STREET51ST STREET52ND STREET 55TH STREET57TH STREETANDERSON VERNON A V E N U E 44TH S T R E E T 46TH S T R E E T LEONIS B O U L E V A R D 50TH S T R E E T FRUITLAND A V E N U E SOTO STREET BOYLE AVENUE ALCOA AVENUE SEVILLE AVENUESANTA FE AVENUEALAMEDA STREET DOWNEY ROAD HAMPTON AVENUE1ST ST.2ND ST.PACIFIC BOULEVARD IRVING ST.ROSS STREET SL A U S O N A V E N U E MALBURG WAY 52ND STREET hawthorneST. CHARLES SIERRA PINE AVENUE INDI A N A A V E N U E BON N I E B E A C H P L A C E AYE R S A V E N U E SUN O L D R I V E B A N D I N I B O U L E V A R D AYE R S A V E N U E 26 T H S T R E E T WA S H I N G T O N B O U L E V A R D AT L A N T I C B O U L E V A R D MAYWOOD MAYWOOD A V E N U E EVERETT A V E N U E EVERETT COUR T LOMA VISTA A V E N U E CH A R T E R EX C H A N G E A V E N U E 48 T H S T R E E T 49 T H S T R E E T 50 T H S T R E E T DIS T R I C T B O U L E V A R D F R U I T L A N D A V E N U E CORONA A V E . GIFFORD A V E N U E EVERETT AVE LOMA VISTA AVE CHAMBERS 45TH STREET SEVILLE AVENUE MINERVAHARRIETT B A N D I N I B O U L E V A R D FRUITLAND AVENUE BOYLE AVENUE DOWNEY ROAD ALCOA AVENUE 27TH MA L B U R G W A Y 54TH S T R E E T BICKETT STREET 37TH STREETPACIFIC BOULEVARD DIS T R I C T B O U L E V A R D 49 T H S T . BO U L E V A R D DIS T R I C T STREET ST. BOUL E V A R D 26TH ST R E E T WAS H I N G T O N SOTO STREETVERNON AVENUE53RD STREET54TH STREET55TH STREET56TH STREET57TH STREET58TH STREET 44 T H S T R E E T PA C K E R S A V E N U E 45 T H S T SACO ST.malabar DEKALB DEKALB 49TH STREET JEWEL AVENUE HE L I O T R O P E 52n d d r i v e SLAUSON AVE M A Y F L O W E R KI N G SL A U S O N A V E . 52nd d r i v e ALAMO STREETALAMEDA STREET L O N G B E A C H F R W Y . - 7 1 0 PENNINGTON WY. BOYLE AVENUE F R U I T L A N D A V E N U E A T L A N T I C B O U L E V A R D B A N D I N I B O U L E V A R D legend: pr o j e c t m a p Slurry Seal Locations Ci t y o f V e r n o n Co n t r a c t N o . C S - 0 4 8 7 Ci t y w i d e S l u r r y S e a l (R E A S ) P H A S E I I I 50 T H S T R E E T