Resolution No. 81221
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RESOLUTION NO. 8122
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AN AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND
CHALMERS CORPORATION, DBA C.E.G. CONSTRUCTION AND
REPEALING RESOLUTION NO. 8055
WHEREAS, on September 4, 2002, the City Council of the City
of Vernon adopted Resolution No. 8055 approving an Agreement, in form,
(the "Draft Agreement") with Chalmers Corporation, dba C.E.G.
Construction ("CEG") for the design and construction of a Business and
Technology Development Center (the "Project"); and
WHEREAS, following the City Council's approval of the Draft
Agreement, but before an actual Agreement was signed by the parties,
various issues arose regarding the design, construction, costs and
allocation of risk associated with the proposed Project; and
WHEREAS, substantial modifications to the Draft Agreement
have been made; and
WHEREAS, by letter dated December 12, 2002, Bruce V.
Malkenhorst, City Administrator/City Clerk, recommended that an
Agreement be approved and executed; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (a) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to enter into an agreement with CEG for the design and
construction of the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
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finds and determines that the recitals contained hereinabove'are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
repeals Resolution No. 8055 and specifically rescinds the Draft
Agreement, it being the intent of the City Council that the revised
Agreement with CEG supersede the Draft Agreement.
SECTION 3: The City Council of the City of Vernon hereby
approves the revised Agreement with CEG, a copy of which is attached
hereto as Exhibit "A" and made a part hereof.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the Mayor and the City Clerk to execute the revised
Agreement for, and on behalf of, the City of Vernon.
SECTION 5: The City Council of the City of Vernon hereby
directs the City Clerk, or his designee, to send one fully executed
revised Agreement to:
Chalmers Corporation, dba C.E.G. Construction
Attn. Trace John Chalmers
7901 Crossway Drive
Pico Rivera, CA 90660
SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 8th day of January, 2003.
EONIS C. LB G, May r
ATTES
zx
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being'Resolution No.
8122, was duly adopted by the City Council of the City of Vernon at an
adjourned regular meeting of the City Council duly held on Wednesday,
January 8, 2003, and thereafter was duly signed by the Mayor of the
City of Vernon.
(SEAL)
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BRUCE V. MALKENHORST, City Clerk
EXHIBIT
0
THIS AGREEMENT (the
executed in duplicate and
California, as of the
BY AND BETWEEN
E
ArRF.FMrMrr
"Agreement") is made, entered into,
to be performed in the City of Vernon,
_day of January, 2003.
CITY OF VERNON, 'a municipal
corporation (hereinafter
referred to as "City")
4305 Santa Fe Avenue
Vernon, CA 90058
CHALMERS CORPORATION, a
California corporation d.b.a.
C.E.G. Construction
(hereinafter referred to as
"Contractor")
7901 Crossway Drive
Pico Rivera, CA 90660
IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND
CONDITIONS HEREIN SET FORTH, THE PARTIES DO HEREBY AGREE AS
FOLLOWS:
Article 1. GENERAL
Section 1. Scope of Work
Contractor will furnish or cause to be furnished all plans,
labor, equipment, tools, and material and will perform all work
described in the Contract Documents attached hereto and
incorporated herein by this reference using its own employees
and/or subcontractors. More specifically, Contractor agrees to
construct and complete in good workmanlike and substantial
manner, a two story concrete reinforced tilt -up building
approximately 40,000 square feet in size (hereinafter referred
to as the "structure", with the terms "project" and "work"
sometimes being used in this Agreement to refer to Contractor's
work on and construction of the structure and related site
work). The structure will be constructed upon the real property
commonly known as 3375 Slauson Avenue in the City of Vernon
(hereinafter referred to as "the Property").
Contractor has submitted a Proposal, dated December 5,
2002, that specifies the work it will perform under this
Agreement. The Proposal is contained in Exhibit "A" and Exhibit
"B" attached hereto and incorporated herein by this reference.
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As part of its Proposal, Contractor has developed an initial set
of plans for the project, identified as the site plan prepared
by O.C. Engineering, dated December 5, 2002. Contractor will
prepare a set of detailed plans and specifications for the
project as it progresses. The plans and specification must
conform to all applicable building code standards.. Contractor
will submit all plans and specifications to the City for review
and approval. The work hereunder must be done in strict
conformity with the plans and specifications approved by the
City.
Section 2. Compensation
(a) The Proposal
The City agrees to pay Contractor a sum of TWO MILLION
SEVEN HUNDERED FIVE THOUSAND ONE HUNDRED THIRTY-ONE DOLLARS
($2,705,131.00) for all of the work identified the Contract
Documents.
(b) Reimbursable Expenses
All County and City fees, assessments, testing and
inspection fees, and taxes are to be paid by the City. In order
to expedite the progress of the work, Contractor will pay these
costs and seek reimbursement from the City. The expenses will
be paid upon approval of the City Administrator. Any other
expenses not identified herein may only be billed if advance
written approval has been obtained from the City Administrator.
Section 3. Payments
(a) Monthly Progress Payments
On or about the 25th day of each month, the Contractor
shall submit to the City an application for its monthly progress
payment. The application shall contain an estimate of the amount
and value of all the work performed by the Contractor since the
date of its last progress payment application. The City's
Representative shall perform a quantity validation prior to
approving the monthly progress payment.
The City shall pay the Contractor, the amount of the
approved monthly progress payment, less 10o retention. The
monthly progress payment may also be reduced by the following:
(1) amounts due to the City for equipment, services or materials
furnished by the City in connection with work done on the
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project; (2) amounts of any claims or liens, and (3) amounts'
required to be deducted by Federal, State or local governmental
authorities. Payment shall be made within twenty (20) calendar
days of receipt of the Contractor's monthly progress payment
application.
No monthly payment shall be construed as acceptance of the
work, or any portion thereof, nor shall such payment preclude
the City from demanding and recovering from the Contractor such
damages as may be sustained by reason of the Contractor's
failure to fully perform under the Agreement.
(b) Payment of the Retention
Payment of the retention shall be made thirty-five (35)
calendar days after the recordation of a Notice of Completion by
the City or if a Notice of Completion is not recorded sixty-five
(65) calendar days after acceptance of the completed project.
The acceptance will be made only by an action of the City
Council of the City. - Acceptance of payment of the retention by
the Contractor shall constitute a waiver of all claims against
the City arising under this Agreement.
Section 4. Contract Documents
The complete Agreement includes all of the Contract
Documents set forth herein, to wit: (1) Contractor's Proposal,
dated December 5, 2002 and identified herein as Exhibit "A" and
Exhibit "B", (2) this Agreement, (3) the forms including the
Performance Bond, the Labor and Material Bond, the Proof of
Insurance, the Workers' Compensation Certificate, (4) the plans
drawn by O.C. Engineering, dated December 5, 2002 (sheets A-1,
A-2, A-2.1, and A-3), (5) the detailed plans and specifications
that will be prepared during the progress of the work; and (6)
the Standard Specifications.
Section 5. Compliance with Provisions of Law
The work shall be completed in compliance with all
applicable Federal, state and local laws, including, but not
limited to ordinances, rules and regulations of competent public
authority.
Section 6. Costs and Attorney's Fees
In any action or proceeding brought to enforce the
provisions of this Agreement, the court shall award reasonable
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costs and expenses, including attorney's fees, to the prevailing
party.
Section 7. Notices
Any Notice required or permitted hereunder shall be given
by personal delivery or by first class mail, postage prepaid,
To: Bruce V. Malkenhorst
City Administrator
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
To: Trace Chalmers/President
CEG Construction
7901 Crossway Drive
Pico Rivera, CA 90660
Section 8. Conflict with Plans and Specifications
The plans and specifications and other contract documents
are intended to supplement each other, so that any work
described in one or more and not mentioned in another are to be
executed as if they were mentioned and set forth in each, except
if the context requires otherwise.
Any conflict between the plans and specifications and this
Agreement shall be brought to the attention of the City
immediately, so that such conflict may be resolved to the
satisfaction of the City. Generally, in the event of any
inconsistency or conflicts between provisions of any agreements,
plans and specifications, et cetera, prepared and/or executed
with respect to this Agreement, change orders and written
amendments to this Agreement executed by both parties shall
prevail over this Agreement, which shall prevail over the
approved plans and specifications, which shall prevail over any
other written reports and documents in existence as of the date
of this Agreement. The resolution of any conflicts shall
require good faith discussions between the parties, but shall be
resolved in the City's sole discretion.
Section 9. Assignment
The Contractor shall not assign this Agreement or payments
due hereunder. The City may assign its duties and obligations
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under this Agreement at its sole discretion, provided that the
assignee expressly assumes all of the City's obligations under
this Agreement and is financially capable of satisfying the
obligations under this agreement.
Section 10. Paragraph Headings
The paragraph headings herein are for the convenience of
the parties and shall not affect the interpretation of this
Agreement.
Section 11. Authority of the City's Representative
The City's Representative, acting in its reasonable
discretion, shall decide all questions which may arise as to the
quality or acceptability of materials furnished and work
performed, and as to the manner of performance and rate of
progress of the work, and all questions as to the interpretation
of the plans and specifications. Any and all issues involving
the payment of extra compensation under this Agreement are to be
referred to the City Engineer.
Article 2. WAGES, HOURS and WORKING CONDITIONS
Section 12. General Prevailing Wages
The general prevailing wages are not applicable to this
project.
Section 13. Hours of Work
(a) The time of service of any worker employed on the
Agreement is limited to eight hours during a calendar day and
forty hours during a calendar week. If an employee works in
excess of the foregoing hours, the employee will be compensated
at a rate of one and one-half times their basic rate of pay.
(b) The Contractor shall keep and make available until
ninety (90) calendar days after completion of this Agreement an
accurate record showing the name of and actual hours worked each
calendar day and each calendar week by each worker employed by
him on the work hereunder.
(c) The Contractor shall, as a penalty, forfeit to the
City $50.00 for each worker employed on the work by the
Contractor or by any subcontractor for each calendar day during
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which such worker is required or permitted to work more than
eight hours a calendar day or forty hours in one calendar week.
Section 14. Apprentices
The Contractor is responsible for complying with the
provisions of Labor Code Section 1777.5 dealing with the
employment of apprentices on the job site.
Section 15. Subcontractors
(a) The Contractor shall comply with the provisions of the
"Subletting and Subcontracting Fair Practices Act" contained in
Public Contract Code Sections 4100 et seq.
(b) The Contractor shall submit to the City the following
information:
(1) The name and location of the place of business of
each subcontractor who will perform work or labor or render
services to the Contractor hereunder, or a subcontractor
licensed by the State of California, who, under subcontract to
the Contractor, specially fabricates and installs a portion of
the work or improvement according to detailed drawings contained
in the plans and specifications, in an amount in excess of one-
half of one percent of the Contractor's total bid.
(2) The portion of the work which will be done by
each such subcontractor.
(3) The prime Contractor shall list only one
subcontractor for each portion of work as defined by the
Contractor in its Proposal.
Section 16. Discrimination
The Contractor shall not refuse to employ or promote any
person, shall not discriminate against any person with respect
to compensation received or terms and conditions of employment,
and shall not discipline or discharge any person employed by him
because of said person's race, religion, creed, color, national
origin, ancestry or sex. In addition, Contractor shall not
refuse to accept otherwise qualified employees as indentured
apprentices solely on the grounds of race, religion, creed,
color, national origin, ancestry or sex.
Section 17. Safety
The Contractor and all subcontractors shall comply with the
provisions of the Safety and Health Regulations for
Construction, promulgated by the U.S. Secretary of Labor under,
Section 107 of the "Contract Work Hours and Safety�Standards
Act", as set forth in Title 29, C.F.R. and by the State of
California, Division of Industrial Safety.
Section 18. Character of Workers
Only competent workers shall be employed on this project.
Any person employed, who is found to be incompetent,
intemperate, troublesome, disorderly or otherwise objectionable,
or who fails or refuses to perform his work properly and
acceptably, shall be immediately removed from the project by the
Contractor and shall not be re-employed on the project.
Article 3. INSURANCE, INDEMNIFICATION and BONDS
Section 19. Insurance
Prior to commencing work hereunder, the Contractor shall
provide the City with proof of insurance naming the City and its
consultants and each of its directors, officers, agents, and
employees as additional -named insureds on a policy or policies
of insurance providing and maintaining the coverages set forth
in the Insurance Schedule attached hereto; provided, that
coverage is not required for active negligence of the City to
the extent that indemnification for the City's active negligence
would be invalid under Section 2782(b)of the California Civil
Code. Said proof of insurance shall also provide that said
policy or policies shall not be canceled or materially reduced
without giving at least 30 days prior written notice to the
City.
Section 20. Indemnification
The Contractor shall indemnify, protect, defend, and hold
harmless the City and its consultants, and each of its
directors, officers, agents, and employees from and against any
and all claims, demands, losses, damages, liabilities, fines,
charges, penalties, orders, judgments, and all costs and
expenses incurred in connection therewith, including reasonable
attorney's fees and costs of defense arising, directly or
indirectly, in whole or in part, out of the services performed
by the Contractor under this Agreement, except to the extent
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arising from or caused by the active negligence or willful
misconduct of the City, its officers, agents, or employees.
Section 21. Workers' Compensation
The Contractor shall secure payment of compensation to his
employees pursuant to Labor Code Section 3700, and shall obtain
employers' liability insurance as set forth in the Insurance
Schedule. Prior to performing the work hereunder, the
Contractor shall submit to the City the Workers' Compensation
Certificate set forth herein or an executed certificate of
workers'- compensation insurance as provided herein. Such
insurance shall include a waiver of subrogation endorsement
naming the City, and its consultants, and each of its directors,
officers, agents, and employees.
Section 22. Labor and Material Payment Bond
Before entering upon the performance of the work hereunder,
the Contractor shall file an approved Labor and Material Bond
with the City. Said bond shall be in the sum of 100% of the
total amount payable by the terms of this Agreement to the
Contractor. Said payment bond shall be in substantially the
form of the payment bond attached hereto.
Section 23. Performance Bond
The Contractor shall execute and deliver to the City for
its approval and acceptance a Performance Bond in the amount of
1000 of the total amount payable by the terms of this Agreement.
Said bond shall be payable by surety or sureties to the City in
the event the Contractor fails to fully perform his obligations
hereunder. Said bond shall be in substantially the form of the
Performance Bond attached hereto.
Article 4. PERFORMANCE
Section 24. Time for Completion
Contractor agrees to commence construction promptly after
issuance of all building and other permits with respect to the
Property and the structure, and to prosecute the work thereafter
diligently to completion, and in any and all events to
substantially complete the structure within 260 calendar days
after the receipt of all building permits needed for the
project.
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Section 25. Force Majeure
Neither Party shall be considered in to be in default in
any of its obligations under this Agreement when a failure of
performance shall be due to an uncontrollable force. The term
"uncontrollable force" shall mean any cause beyond the control
of the party affected, including, but not restricted to, flood,
earthquake, storm, fire, lightening, epidemic, war, riot, civil
disturbance or disobedience, sabotage, or embargoes of the
United States Government or any other government, which by
exercise of due diligence such party could not reasonably have
been expected to avoid and by exercise of due diligence has been
unable to overcome. Either party rendered unable to fulfill any
of its obligations under this Agreement by reason of an
uncontrollable force, shall give written notice within five
business days of such fact to the other party and shall exercise
due diligence to remove such inability with all reasonable
dispatch.
Section 26. Utility Relocation
(a) As between the parties, the City is responsible for
the timely removal, relocation or protection of existing main or
trunk line utility facilities located on the job site, unless
such utilities are identified by the City in the plans and
specifications. The Contractor shall be compensated by the City
for the costs of relocating, for repairing damage not due to the
failure of the Contractor to exercise reasonable care, for
removing or relocating such utility facilities not included in
the plans and specifications with reasonable accuracy, and for
equipment on the project necessarily idled during such work.
The Contractor shall not be assessed liquidated damages for
delay in completion of the project, when such delay is caused by
the failure of the City or the owner of the utility to identify
or provide for removal or relocation of such utility facilities.
(b) Nothing herein shall be deemed to require the City to
indicate the presence of existing service laterals or
appurtenances whenever the presence of such utilities on the
site of construction can be inferred from the presence of other
visible facilities, such as buildings or metering junction boxes
on or adjacent to the site of construction; provided, however,
nothing herein shall relieve the City from identifying main or
trunk lines in the plans and specifications.
(c) If the Contractor, while performing the contract,
discovers utility facilities not identified by the City in the
contract plans or specifications, he shall immediately notify
the City and utility in writing.
Section 27. Public Convenience
(a) The Contractor's operation shall cause no.unnecessary
public inconvenience, beyond that reasonably necessary -to allow
the performance of the work in the ordinary course of business.
The access rights of the public.shall be considered at all
times. Unless otherwise authorized, traffic shall be permitted
to pass through the work or an approved detour shall be
provided. Safe, adequate, continuous and unobstructed
pedestrian and vehicular access shall be maintained to fire
hydrants, water valves, residences, commercial and industrial
establishments, churches, schools, parking lots, service
stations, motels, fire and police stations, and hospitals,
unless other arrangements are made satisfactory to owners
thereof.
(b) Vehicular access to residential driveways shall be
maintained to the property line except when necessary
construction precludes such access for reasonable periods of
time.
(c) Grading operations, roadway excavation and embankment
construction shall be conducted by the Contractor in a manner to
provide a reasonably satisfactory surface for traffic. When
rough grading is completed the roadbed surface shall be brought
to a smooth, even condition satisfactory for traffic.
(d) The Contractor shall comply with all applicable State,
County and City requirements for closure of streets. The
Contractor shall provide barriers, guards, lights, signs,
temporary bridges, flagmen and watchmen advising the public of
detours and construction hazards. The Contractor shall also be
responsible for compliance with additional public safety
requirements that may arise during construction. The Contractor
shall furnish and install and, upon completion of the work,
promptly remove all signs and warning devices.
(e) At least 48 hours in advance of closing or partial
closing or of reopening any street, alley, or other public
thoroughfare, the Contractor shall notify the police, fire;
traffic and engineering departments of the City and any other
jurisdictional agencies involved and shall comply with their
requirements.
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Section 28. Excavations
(a) Excavation Safety
During the excavation of trenches five (5) feet or more in
depth, the Contractor shall submit to the City, for. its
approval, a detailed plan showing the design of shoring,
bracing, sloping, and other provisions to be made for worker
protection from the hazard of caving ground. Said plan shall be
at least as effective as that required by the Construction
Safety Orders of the California Division of Industrial Safety.
If said plan varies from the shoring systems standards
established by said Safety Orders, the plan shall be prepared by
a registered civil or structural engineer.
(b) Trenches
During the excavation of trenches four (4) feet below the
surface, the following provisions apply:
(1) The Contractor shall promptly, and before the
following conditions are disturbed, notify the City, in writing,
of any;
(i) Material that the Contractor believes may be material
that is hazardous waste, as defined in Section 25117
of the Health and Safety Code, that is required to be
removed to a Class I, Class II, or Class III disposal
site in accordance with provisions of existing law.
(ii) Subsurface or latent physical conditions at the site
differing from those indicated.
(iii) Unknown physical conditions at the site of any
unusual nature, different materially from those
ordinarily encountered and generally recognized as
inherent in work of the character provided for in the
contract.
(2) The City shall promptly investigate the conditions,
and if it finds that the conditions do materially so differ, or
do involve hazardous waste, and cause a decrease or increase in
the Contractor's cost of, or the time required for, performance
of any part of the work shall issue a change order under the
procedures described in the contract.
(3) In the event that a dispute arises between the City
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and the Contractor whether the conditions materially differ, or
involve hazardous waste, or cause a decrease or increase in the
Contractor's cost of, or time required for, performance of any
part of work, the Contractor shall not be excused from any
scheduled completion date provided for by the contract, but
shall proceed with all work to be performed under the contract.
The Contractor shall retain any and all rights provided either
by contract or by law which pertain to the resolution of
disputes and protests between the contracting parties.
(c) Closure
The job site shall be completely fenced off to prevent any
public access to the area. In addition, at the close of each
working day, the Contractor shall plate all open excavations in
the public right of way in accordance with normal practice in
the industry and the rules, regulations, laws and ordinances of
the State of California, the County of Los Angeles, and the City
of Vernon.
Section 29. Exclusions
The following items are additional to and separate from the
work to be provided by Contractor as part of this Agreement, but
may be performed by Contractor for an agreed upon additional fee
at the request of the City: (a) consultations, negotiations and
preparation of documentation supporting the procurement of
project financing; (b) consultations and services other than
normal assistance in procuring building permits and/or appearing
before governmental authorities in connection with the project;
(c) interior design, including procurement and placement of
furniture, furnishings, artwork and decorations; (d) design,
coordination, management and other services supporting the
procurement of telephone systems, computer wiring networks, any
alarms, security systems and other special systems, which are
not a part of this Agreement; (e) offsite improvements beyond
the matters specified in this Agreement; (f) hazardous material
abatement; (g) building plan check, permits and fees; (h) county
and city fees, assessments, permits, testing and inspection; (i)
local fees and assessments as might be imposed such as sewage
facilities charges, city occupational tax, fees to fund fire
hydrants and water; (j) utility fees or charges; (k) deputy
inspection fees; (1) city taxes and license fees; (m) plan
duplication, (n) bond premiums for completion, payment and
performance bonds; and (o) the cost of abating or correcting
unforeseen conditions as determined by the Standard
Specifications for Public Works Construction.
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Section 30. Additional and/or Extra Work
The City may require changes in, additions to, or
deductions from the work to be performed or to the materials to
be furnished hereunder. Should the City at any time during the
progress of the work request any modifications, alterations, or
deviations in, or additions to, this Agreement or the plans and
specifications, it shall be at liberty to do so, and the same
shall in no way make void this Agreement, but the costs of the
item(s) subject to change (and agreed to by Contractor) shall be
added to the contract price and shall be paid to the Contractor.
No extra work shall be performed or change made unless in
the pursuance of a written order from the City stating that the
extra work or change is authorized and setting forth the basis
upon which payment therefore is to be made, and no claim for an
addition to the contract price shall be valid unless so ordered
and agreed to by the Contractor; provided, however, that nothing
in this article shall excuse the Contractor from proceeding with
the prosecution of the work so changed. The Contractor shall,
when required by the City, furnish an itemized breakdown of the
quantities and prices used in computing the value of any change
that might be ordered.
The adjustment, if any, in the amounts to be paid to the
Contractor by reason of any such change, addition or deduction
shall be determined by one or more of the following methods:
(1) A lump sum proposal from the Contractor.
(2) By applying the unit prices contained in the
Contractor's bid incorporated in the Contract
Documents or fixed by subsequent agreement between the
City and the Contractor.
(3) By proceeding with the work and to furnishing daily
reports of extra work. The daily report shall itemize
all costs for labor, materials, and equipment rental.
Reported labor costs shall include names and
classifications of the workers, the hours worked, and
the rates of pay. Reported equipment costs shall
include the type of equipment used, identification
number, the hours of operation, and hourly rate. All
records and reports shall be made immediately
available to the City's Representative.
When the City orders work to be done and there is a
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supplemental agreement between the City and the Contractor to
perform said work, the City reserves the right to approve the
method used by the Contractor to accomplish said work. At the
request of the City, the method to be used shall be defined in
the supplemental agreement prior to any work being performed by
the Contractor.
Section 31. Clean Up
Upon completion of the work, the Contractor shall remove
all debris and surplus materials from the work site and leave
the Property in a neat and orderly condition.
Section 32. Materials
(a) New Materials and Equipment
Unless otherwise specified, shown, or permitted by the City
all material and equipment incorporated in the work shall be new
and of current manufacture. The City may request that the
Contractor furnish manufacturer's certificates indicating the
quality of the material. No material shall be installed until
approved by the City's Representative.
(b) Inspection of Materials
All material furnished hereunder shall be subject to
inspection and testing by the City's authorized agents. at the
City's expense. In the event that such inspection and testing
reveals material that does not complywith the Contract
Documents, the Contractor shall bear the cost of necessary
corrective measures as well as the cost of subsequent inspection
and testing.
(c) Defective Equipment or Materials
The inspection under Section 32(b) shall not relieve the
Contractor of any of its obligations under the Contract. Even
though equipment or material required to be provided has been
inspected,- accepted, and included in a monthly pay application,
the Contractor shall, at Contractor's expense, replace or repair
any such equipment or material found to be defective or
otherwise non -compliant with the Contract Documents up through
the guarantee period in Section 43.
NXIC
(d) Storage of Materials
All material for use in the work shall be stored by the
Contractor in such a manner as to prevent damage from exposure
to the elements, from admixture of foreign materials or from any
other cause. The Contractor shall be solely responsible for
damage or loss of materials caused by exposure, weather or other
causes.
Section 33. Permits and Licenses
(a) The Contractor shall apply for and procure all permits
and licenses necessary for the work.
(b) The Contractor shall give all notices necessary and
incidental to the due and lawful prosecution of the work and
shall duly comply with the terms and conditions of all permits
and licenses.
Section 34. Land and Rights of Way
(a) The City shall provide, or arrange for the provision
of, the land and rights of way upon which the work is to be
constructed.
(b) The Contractor shall procure any additional rights of
way desired by the Contractor to facilitate construction of the
work. The Contractor shall enter into written agreements with
property owners for such purposes and shall provide the City
with copies of such agreements.
(c) Except as provided in Section 26, when the work
described in the Contract Documents is to be performed in the
vicinity of existing improvements, said improvements shall not
be disturbed or damaged. However, the Contractor may remove or
relocate improvements in the land and rights of way provided by
the City pursuant to Section 33(a).
Section 35. Plans and Working Drawings
(a) The approved plans shall be supplemented by such
working drawings as are necessary to control the work
adequately. All such drawings shall be consistent with the
Contract Documents, true developments thereof, and reasonably
inferable therefrom. All such drawings shall be deemed written
instructions to the Contractor.
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(b) The Contractor will furnish to the City, free of
charge, copies of all drawings, and specifications reasonably
necessary for the execution of the work. The Contractor shall
keep one set of drawings and specifications in good order at the
job site and make them available to the City representative and
to the Contractor's representatives.
Section 36. Shop Drawings Submitted by the Contractor
(,a) No portion of the work requiring a shop drawing
submittal shall be commenced until the submittal has been
reviewed by the City and returned to the Contractor with a
notation that the City has completed its review of the shop
drawing. Shop drawings are drawings, diagrams, illustrations,
schedules, performance charts, brochures and other data which
are prepared by the Contractor or any subcontractor,
manufacturer, supplier or distributor, and which illustrate some
portion of the material or work.
(b) The Contractor shall review, approve, and submit for
review by the City's Representative shop drawings for material
and equipment to be incorporated into the work. Four copies of
shop drawings shall be submitted to the City with a letter of
transmittal listing the drawings submitted. Drawings shall show
the name of the project, the name of the Contractor, and if any,
the names of suppliers, manufacturers, and subcontractors. Shop
drawings shall be submitted with promptness and in orderly
sequence so as to cause no delay in progress of the work.
(c) Shop drawings shall be complete. If the shop drawings
show any deviation from the requirements of the plans and
specification because of standard shop practices or other
reasons, the deviations and the reasons therefore shall be set
forth in the letter of transmittal.
(d) By approving and submitting shop drawings, the
Contractor represents that material, equipment and other work
shown thereon conforms to the plans and specifications except
for any deviation identified in the letter of transmittal.
(e) Within ten (10) calendar days after receipt of the
shop drawings, the City will return two prints of the drawings
to the Contractor along with its comments. The Contractor shall
resubmit corrected drawings, if the City has so requested.
Resubmitted shop drawings shall be processed in the same manner
as the original submittals. The Contractor's letter of
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V
transmittal accompanying its resubmitted shop drawings shall
highlight the revisions requested by the City.
(f) The City's Representative will review the shop
drawings only for general conformance with the design concept of
the project and general compliance with the plans and
specifications. The City's review of the shop drawings shall
not be construed as relieving the Contractor of its
responsibilities under the Contract, including but not limited
to: (1) providing material and equipment; (2) ensuring the
proper fitting and construction of the pipeline; (3) submitting
accurate and complete shop drawings; (4) selecting proper
fabrication processes and techniques; and (5) performing the
work in a safe manner.
Section 37. Supervision by the Contractor
The Contractor shall have a designated representative or
alternative representative present at the worksite whenever work
is in progress. The Contractor's designated representative or
alternate representative shall have authority to act for the
Contractor. Before starting the work, the Contractor shall
inform the City, in writing, of the name of its designated
representative. An alternate representative may also be
designated. Any communication between the City and the
Contractor's representative shall be deemed as a communication
to the Contractor. If the Contractor fails to have a designated
representative present at the worksite, the City's
Representative may give necessary direction or instruction to
the superintendent or foreman having charge of the specific work
to which the direction or instruction applies. The
superintendent or foreman shall comply with the direction or
instruction promptly and shall relay the City's communication to
the Contractor or its designated representative.
Section 38. Inspection of Work
(a) The City shall have access to the worksite at all
times to review and/or inspect the progress of the work, the
workmanship and the material being used.
(b) Whenever the Contractor changes its hours of
operation, notice shall be given to the City's Representative
prior to institution of the change. Any work done in the
absence of the City's Representative may be subject to
rejection, at the City's discretion.
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(c) All excavations that are to be backfilled shall be
inspected and approved by the City's Representative prior to
backfilling. The Contractor shall give the City's
Representative advanced notice of the backfilling.
(d) Inspection of the work by the City's Representative
shall not relieve the Contractor of the obligation to fulfill
the Contract. Defective work shall be corrected, notwithstanding
the fact that the City's Representative may have previously
accepted the defective work.
Section 39. Correction of Defective and Unauthorized Work
(a) All work that has been rejected shall be corrected, or
removed and replaced by the Contractor, at the City's direction.
Any remedial work will be done in a manner acceptable to the
City. The Contractor shall pay the remediation and/or removal
and replacement costs. The Contractor must obtain written
authorization to perform extra or unauthorized work prior to
undertaking such work. The Contractor will not be compensated
for any unauthorized work. In addition, the City may order the
Contractor to remove, at the Contractor's expense, any extra or
unauthorized work.
(b) The Contractor must comply promptly with any order
made by the City under the provisions of this article. If the
Contractor fails to comply with the City's orders, the City may
in its discretion cause defective work to be corrected by its
own forces or by another contractor. The amount that the City
paid to correct the defective work will be deducted from any
monies due or to become due to the Contractor.
Section 40. Errors or Discrepancies Noted by the
Contractor
(a) If the Contractor, either before commencing work or in
the course of the work, finds any discrepancy between the plans,
specifications, and drawings or between any of them and the
physical conditions at the worksite, or finds any error or
omission in any of the plans, specifications, drawings or in any
survey, the Contractor shall promptly notify the City in writing
of such discrepancy, error, or omission. If the Contractor
observes that any plans, specifications, or drawings are at
variance with any applicable law, ordinance, regulation, order
or decree, Contractor shall promptly notify the City in writing
of such deviation or conflict.
(b) The City, upon receipt of such notice, shall promptly
investigate the circumstances and give appropriate instruction
to the Contractor. Until such instruction is given, any work
done by the Contractor, either directly or indirectly after its
discovery of such error, discrepancy, omission, deviation or
conflict, will be at the Contractor's own risk. The Contractor
shall bear all costs arising from any work that incorporates
such error, discrepancy, omission, deviation or conflict.
Section 41. Equipment
The Contractor shall furnish adequate equipment and
facilities to perform properly the work in a workmanlike manner
in accordance with the plans and specifications. Such equipment
and facilities must be in a good state of repair and maintained
in such state during the progress of the work and shall meet all
requirements of applicable ordinances and laws. No worn or
obsolete equipment shall be used, and in no case shall the
manufacturer's rating of capacity for any equipment be exceeded.
Article 5. MISCELLANEOUS
Section 42. Delay
(a) The Contractor acknowledges that the City desires the
project to be completed on or before the date specified in this
Contract.
(b) The Contractor shall within ten (10) days from the
beginning of any delay notify the City in writing of the cause
of delay; whereupon the City shall ascertain the facts and
extent of the delay and extend the time for completing the work
if in its sole judgment the findings of fact justify such an
extension. The City's findings of fact thereon shall be final
and conclusive on the parties hereto.
(c) The City shall have the right to extend the time for
completion if it determines such extension to be in the best
interest of the City.
Section 43. Guarantee
The Contractor does hereby warrant and guarantee all work
performed by it hereunder against defects in workmanship and/or
material for the period of one year after the date the City
Council has accepted the work, and the Contractor shall repair
and replace any and all such work, together with any other work
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i
which may be displaced in so doing, that may prove defective in
workmanship during such period, without expense whatsoever to
the City, ordinary wear and tear, abuse, or neglect excepted.
In the event of failure to comply with these requirements within
a week after being notified in writing, the City is hereby
authorized to proceed and have the defects repaired. and made
good at the expense of the Contractor, who hereby agrees to pay
the costs and charges therefor immediately on demand.
Section 44. Builder's Risk
Unless otherwise provided, the City shall purchase and
maintain, in a company or companies lawfully authorized to do
business in the jurisdiction in which the project is located,
property insurance written on a builder's risk, "all-risk," or
equivalent policy form in the amount of the initial contract
sum, plus value of subsequent contract modifications and costs
of materials supplied or installed by others, comprising total
value for the project at the site on a replacement cost basis
without optional deductibles. Such property insurance shall be
maintained, unless otherwise provided in the Contract Documents,
otherwise agreed in writing by all persons and entities who are
beneficiaries of such insurance, until final payment has been
made or until no person or entity other than the City has an
insurable interest in the property required by this provision to
be covered, whichever is later. This insurance shall include
interests of the City, the Redevelopment Agency, the Contractor,
Subcontractor and Sub -subcontractors in the project.
Property insurance shall be on an "all-risk" or equivalent
policy form and shall include, without limitation, insurance
against the perils of fire (with extended coverage) and physical
loss or damage including, without duplication of coverage,
theft, vandalism, malicious mischief, collapse, windstorm,
falsework, testing and startup, temporary buildings and debris
removal including demolition occasioned by enforcement of any
applicable legal requirements, and shall cover reasonable
compensation for Contractor's services and expenses required as
a result of such insured loss.
If the property insurance requires deductibles, the City
shall pay costs not covered because of such deductibles. The
property insurance shall cover portions of the work stored off
the site, and also portions of the work in transit.
Except as otherwise provided herein, the City and
Contractor waive all rights against each other and any of their
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subcontractors, sub -subcontractors, agents, partners and
employee for damages caused by fire or other causes of loss to
the extent covered by property insurance applicable to the
project, except such rights as they have to proceeds of such
insurance held by the City as fiduciary. The policies shall
provide such waiver of subrogation by endorsement or otherwise.
A waiver of subrogation shall be effective as to a person or
entity even though that person or entity would otherwise have a
duty of indemnification, contractual or otherwise, did not pay
the insurance premium directly or indirectly, and whether or not
the person or entity had an insurable interest in the property
damaged. Notwithstanding the above, the City does not waive its
right to subrogate against the Contractor, any of its
subcontractors, sub -subcontractors, agents or employees, for
damages caused to non -project related property; real or personal
or both, at or adjacent to the site of the project, caused by
the negligent, intentional or other willful act or omission of
the Contractor, any of its subcontractors, sub -subcontractors,
agents, partners or employees.
Section 45. Termination
(a) Termination (Contractor's Default)
(1) It shall be considered a default if the Contractor
shall (a) declare bankruptcy, become insolvent, or assign his
assets for the benefit of his creditors; (b) disregard or
violate material provisions of the Contract Documents or City's
instructions, or fail to prosecute the work according to the
approved progress schedule; (c) fail to provide a qualified
superintendent, or representative, or competent workers,
subcontractors, or materials or equipment which meet the
requirements of the plans, specifications, and drawings. In
such event, the City will so notify the Contractor in writing.
Upon receipt of any such written notice of default, the
Contractor shall, at his expense, preserve at the project site
all construction materials, equipment, and plant, and shall
undertake immediate steps to remedy such default.
(2) If the Contractor fails to remedy such default within
ten (10) calendar days after receipt by it of such written
notice of default, the City, in writing and without notice to
the Contractor's sureties, at its option may terminate the right
to proceed hereunder with that work as to which default has
occurred or may terminate this Agreement. Upon receipt of any.
such written notice, the Contractor shall at its expense and for
the work affected by any such termination:
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(i) assist the City in making an inventory of all
materials and equipment in storage at the site,
enroute to the site, in storage or manufacture away
from the site, and/or on order from suppliers;
(ii) assign subcontracts, supply contracts, and equipment
rental agreements to the City all as designated by
the City; and
(iii) remove from the site all construction materials,
equipment, and plant listed in said inventory other
than such source testing materials, equipment, and
plant which are designated in writing by the City to
be used by the City in completing such work.
(3) The City shall have the right to complete the work to
which the termination applies by contract or otherwise, and the
Contractor agrees that the City shall have the right for such
purpose and for as long as necessary to take possession of and
to use any or all of .the materials, plant, tools, equipment,
supplies and property of any and every kind owned and furnished
by the Contractor which is designated by the City in writing for
such purpose.
(4) The expense of so completing such work, together with
reasonable charges for administering any contract for such
completion, shall be charged to the Contractor, and such expense
shall be deducted by the City out of such monies as may be due
or may at any time thereafter become due to the Contractor. In
case such expense exceeds the sum which would have otherwise
been payable under the Agreement, then the Contractor and his
sureties shall be liable for and, upon written notice from the
City, shall promptly pay the amount of such excess to the City.
The City shall not be required to obtain the lowest figures for
completing such work, but may make such expenditures as in the
City's sole judgment best accomplish such completion.
If such cost is less than the balance which would have been
due, the Contractor shall have no claim to the difference except
to such extent as may be necessary in the opinion of the City,
to reimburse the Contractor or the Contractor's sureties for any
expense properly incurred for materials, tools, equipment,
property, and labor which were devoted to the prosecution of the,
work and of which the City shall have received the benefit. In
computing such expense, as it relates to equipment and property,
the salvage value at completion of the work shall be deducted
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from the depreciated value at the time the Contract was
terminated, and the difference shall be considered as an
expense.
(b) Breach of Contract by City
If the City fails to timely perform any or all of its
obligations under this Contract, the Contractor shall have the
right to pursue any one or more remedies available at law or
equity for such failure to perform.
Section 46. Standard Specifications
The "Standard Specifications for Public Works Construction"
(2000 edition), published by Building News, Inc. is hereby
incorporated by this reference and made a part hereof as though
fully set forth at length. In the event that said standard
specifications are inconsistent with the terms of this
Agreement, then this Agreement shall be deemed controlling.
Section 47. Contractor's Financial Responsibility
Contractor shall promptly pay, for City's account, all
valid bills and charges for material, labor or otherwise in
connection with or arising out of the construction of the
structure by Contractor, as set forth in this Agreement, subject
to the City's performance of its obligations under this
Agreement.
Should any liens or claims of liens or stop notices be
filed or recorded against the City and/or the Property, as a
result of a breach of the foregoing covenant, Contractor shall
within ten (10) days of written demand by the City or the
Property owner, either pay and discharge the same and cause the
same to be released of record, or shall furnish a surety bond in
an amount of least 125% of the contested lien or stop notice
lien. The bond shall be obtained from a surety that is
different that the surety issuing the performance and labor and
material bonds.
Section 48. Contractor's Qualifications
The Contractor must have a minimum of five (5) years
existence as an ongoing business enterprise in the field covered
in the proposal. If a Contractor has been in business for less
than five (5) years, comparable experience of Contractor's
owner(s) or responsible managing employee(s) may be substituted.
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A joint venture or similar temporary organization, or a firm
established only for this project, would not be qualified.
The Contractor must not have ever failed to satisfactorily
complete a contract awarded to him, as a result of a breach and
default by the Contractor.
Section 49. Contractor's License Notice
The Contractor must possess a valid licensed in accordance
with the law under the provisions of Division III, Chapter 9, of
the Business and Professions Code of the State of California
during the entire project. Contractor is also required by law to
be licensed and regulated by the Contractor's State License
Board. Any questions concerning a contractor may be referred to
Register, Contractor's State License Board, 9835 Goethe Road,
Sacramento, California. Mailing address: P.O. Box 26000,
Sacramento, California 95826. The undersigned is licensed in
accordance with an Act providing for the Registration of
Contractors, License No. B-665299.
Section 50. Hazardous Materials
City recognizes that Contractor is a construction firm,
with no experience in detecting or remediating hazardous
materials (as such term is defined in any Federal, state and/or
local law, ordinance, regulation or interpretive case) and that
the Contractor is not the "operator" of the project or Property.
If after the commencement of the project, any hazardous
materials are discovered at the Property, Contractor shall be
entitled to immediately stop its work in the affected areas, and
Contractor shall report the condition to the City, and, if
required by applicable law, to any appropriate governmental
agency. Contractor shall not be obligated to perform any work
relating to or in any area containing hazardous materials
without further written agreement. All remediation measures
shall be the sole responsibility of the Property owner(s), and
shall be performed in a manner minimizing any adverse effect
upon the work of Contractor.
Section 51. Early Occupancy
If the City requests occupancy of the structure before
Contractor has completed its work, the City will indemnify,
defend and hold Contractor harmless from all disruption, delay,
or interference with the progress of Contractor work that may
occur as a result of such early occupancy, and will indemnify
IW,a
Contractor and save it harmless from all claims, liability, loss
and expense, including attorney's fees, asserted or incurred as
a result of.the activities of City or tenant or their agency,
contractors, employees or subcontractors or persons acting under
them including delay, interference, personal injury, bodily
injury, and property damage. The City shall not indemnify
Contractor for claims, loss or expense caused by the fault or
negligence of Contractor.
Section 52. Amendment
All changes or modifications to this Agreement shall be in
a writing stating that it is an amendment to this Agreement and
shall be signed by both parties or their duly authorized agents.
This Agreement shall not be modified through course of dealing,
usage or trade.
Section 53. Benefit of Agreement
This Agreement shall bind and benefit the parties hereto
and their heirs, successors, and permitted assigns.
Section 54. Waiver
Any waiver at any time by either party of its rights with
respect to a default under this Agreement, or with respect to
any other matters arising in connection with this Agreement,
shall not be deemed a waiver with respect to subsequent default
or other matter.
Section 55. Entire Agreement
This Agreement constitutes the complete and final
expression of the agreement of the parties and is intended as a
complete and exclusive statement of the terms of their
agreements and supersedes all prior and contemporaneous offers,
promises, representations, negotiations, discussions,
communications and agreements which may have been made in
connection with the subject matter hereof. All exhibits are
incorporated by reference. Contractor represents that in
entering into this Agreement, it has not relied on any previous
representations or understandings of any kind or nature_
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JAN=07-2003 TUE 05:43 PM OLIVO & PLASCENCIA FA} N0. 562 869 1883 P,. 02/02
IN WITNESS WHEREOF the parties hereto have executed this
Agreement or caused it to be executed as of the day, month and
year first above written.
CITY OF VERNON
By
Leonis C. Malburg, Mayor
ATTEST:
By__._._____
Bruce V.Malkenhorst, City Clerk
APPROVED AS TO FORM:
By___ .______
kDUARDO OLIVO, City Attorney
CONTRACTOR
Chalmers Corporation, dba CEG
Construc
B L I
By
NOTE: The legal name of the Contractor shall be set forth above. If the Contractor is a
Corporation, two signatures are required, as follows: (1) the chairman of the board, the
president, or any vice-president, and (2) the secretary, any assistant secretary, the chief
financial officer, or any assistant treasurer. If the bidder is a limited liability company,
signatures are required of two members or managers unless otherwise provided in the
company's articles of organization. If the bidder is a partnership, signatures are required
of the partner or partners authorized to sign contracts on behalf of the partnership.
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Article 6. BOND FORMS AND INSURANCE REQUIREMENTS
Contractor shall furnish a Workers` Compensation
Certificate in substantially the form shown herein and shall
give both a Performance Bond and a Labor and Material Bond on
the forms enclosed herewith. A Sample Letter of Credit is also
enclosed as a guide for a Contractor's security.
Insurance coverage shall be provided in the types and
amounts shown on the Insurance Schedule. A copy of the policy
or a notarized letter from the insurance underwriter or carrier
verifying the coverage is required in order to demonstrate proof
of insurance.
Time is of the essence of this Agreement, and so the
insurance schedule must be promptly submitted to an authorized
insurance agent. Since an insurance endorsement providing
coverage for this Agreement is required, it is advisable to
provide a copy of this Agreement to the insurance agent.
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JAW07-2003 TUE 05:43 PM OLIVO & PLASCENCIA , FAX N0. 562 869 1883 P. 01102
WORKERS' COMPENSATION
CERTIFICATE
The undersigned acknowledges that section 3700 of the
California Labor Code requires every employer to be insured
against liability for worker's compensation or to undertake.
self. -insurance in accordance with the provisions of that Labor
Code. The undersigned agrees to comply with such provisions
before commencing the performance of this Agreement.
CONTRACTOR
Name
Dated 0-3
By —!
NOTE: The legal name of the Contractor shall be set forth above.
If the Contractor is a corporation, two signatures are required,
ilea follows: (1) the chairman of the board, the president, or any
vice-president, and (2) the secretary, any assistant secretary,
the chief financial officer, or any assistant treasurer. if the
bidder is a limited liability company, signatures are required
of two members or managers unless otherwise provided in the
company's articles of organization. if the bidder is a
partnership, signatures are required of the partner or.partners
authorized to sign contracts on behalf of the partnership.
Workers' Compensation Certificate - 1
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PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS: That
WHEREAS, the City Council of the City of Vernon, a municipal
corporation, by action on the day of 2003,
has awarded to
hereinafter designated as the "Principal", the contract
for
in Los Angeles County, California; and
WHEREAS, said Principal is required under the terms of said
Contract to furnish a bond for the faithful performance of said
Contract;
NOW, THEREFORE, we, the Principal and
as Surety, are held firmly bound unto the CITY OF
VERNON hereinafter called the "Obligee," in the penal sum
of
DOLLARS($ ) lawful money of the United States of
America, for the payment of which sum well and truly to be made,
we bind ourselves, our heirs, executors, administrators and
successors, jointly and severally and firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if the above
bounden Principal, his heirs, executors, administrators,
successors or assigns shall in all things stand to and abide by,
and well and truly keep and perform the covenants, conditions, and
agreements in said Contract, and any alteration thereof made as
therein provided, on his part to be kept and performed at the time
and in the manner therein specified, and in all respects according
to their true intent and meaning, and shall indemnify and save
harmless the Obligee, its officers and agents, as therein
stipulated, this obligation shall become null and void; otherwise
it shall be and remain in full force and virtue. And the said
Surety, for value received, hereby stipulates and agrees that no
change, extension of time, alteration, or addition to the terms of
the Contract, or to the work to be performed thereunder, or the
specifications accompanying the same, shall in any affect its
obligation on this bond, and it does thereby waive notice of any
such change, extension of time, alteration or addition to the
terms of the Contract, or to the work or to the specifications,
and said Surety agrees that in case suit is brought on this bond,
Surety will pay City's reasonable Attorney's fees to be fixed by
the court.
Performance Bond - 1
IPXE
IN WITNESS WHEREOF, three (3) identical counterparts of this
instrument, each of which shall for all purposes be deemed an
original hereof, have been duly executed by the Principal and
Surety above named, on the day of 2003.
Name
(Principal)
(Attach Acknowledgment) By
Name
(Surety)
(Attorney -in -fact)
APPROVED AS TO FORM:
By
By
EDUARDO OLIVO, City Attorney
Performance Bond - 2
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.t 1 4
LABOR AND MATERIAL PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS: That
WHEREAS, the City Council of the CITY OF VERNON,
corporation, by action on the day of
awarded to
hereinafter designated as the "Principal," Contract
for
Los Angeles County, California; and
a municipal
2003, has
in
WHEREAS said Principal is required to furnish a bond in
connection with said Contract providing that if said Principal or
any of his subcontractors shall fail to pay for any materials,
provisions, provender, or other supplies, or teams used in, upon,
for or about the performance of the work contracted to be done, or
for any work or labor done thereon of any kind, or for amounts due
under the Unemployment Insurance Act, the Surety on this bond will
pay the same to the extent hereinafter set forth.
NOW, THEREFORE, we, the Principal and
, as Surety, are held and firmly bound unto the CITY OF VERNON in
the penal sum of
DOLLARS
($ ), lawful money of the United States of America, for
the payment of which sum well and truly to be made, we bind
ourselves, our heirs, executors, administrators, and successors,
jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if said
Principal, his subcontractors, heirs, executors, administrators,
successors, or assigns, shall fail to pay for any materials,
provisions, provender or other supplies or teams used in, upon,
for or about the performance of the work contracted to be done, or
for work or labor thereon of any kind, or fail to pay any of the
persons named in California Civil Code Section 3181, or amounts
due under the Unemployment Insurance Code with respect to work or
labor performed by any such claimant, or for any amounts required
to be deducted, withheld, and paid over to the Franchise Tax Board
from the wages of employees of the Contractor and his
subcontractors pursuant to Section 18663 of the Revenue and
Taxation Code with respect to such work and labor, and all other
applicable laws of the State of California and rules and
regulations of its agencies, then said Surety will pay the same in
or to an amount not exceeding the amount hereinabove set forth,
and also will pay, in case suit is brought upon this bond, such
reasonable attorneys' fees as shall be fixed by the court,
pursuant to Section 3181 of the California Civil Code.
Labor and Material Payment Bond--1
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This bond shall inure to the benefit of any of the persons
named in Section 3181 of the California Civil Code, so as to give
a right of action to them or their assigns in any suit brought
upon this bond, and the said Surety, for value received, hereby
stipulates and agrees that no change, extension of time,
alteration, or addition to the terms of the Contract, or the work
to be performed thereunder, or the specifications accompanying the
same, shall in any way affect its obligation on this bond, and it
does hereby waive notice of any such change, extension of time,
alteration, or addition to the terms of the Contract, or to the
work or to the specifications.
IN WITNESS WHEREOF, three (3) identical counterparts of this
instrument each of which shall for all purposes be deemed an
original thereof, have been duly executed by the Principal and
Surety above named on the day of
2003.
Name
(Principal)
(Attach Acknowledgment)
By
Name
(Surety)
M
APPROVED AS TO FORM:
EDUARDO OLIVO, City Attorney
(Attorney -in -fact)
Labor and Material Bond --2
M&M
JAN'07.2Q03.TUE 05:49 PM OLIVO & PLASCENCIA iFAX N0. 562 869 1883 ti P. 01
CONTRACTOR'S ACKNOWLEDGEMENT OF
INSURANCE REQUIREMENTS
The Contractor acknowledges that the Insurance Schedule
contained herein has been reviewed, that a copy thereof has been
submitted to an authorized insurance agent or broker, and that the
proofs of insurance required therein will be submitted to the
City.
The Contractor understands that it cannot commence work under
this Agreement until all proofs of insurance have been received
and approved as to form by the City Attorney.
The Contractor agrees that failure to submit the required
proofs of insurance shall constitute grounds at the City's
discretion for termination of the Agreement.
Date: I}-
M
Contractor
%4�A e ~,' "-
INSURANCE SCHEDULE (CONTRACTOR)
The Contractor shall provide proof of insurance, including a
standard certificate of insurance, in at least the following
amounts and coverage (combined single limit permitted):
I. Coverage and Limits
Bodily Injury Property Damage
Hazards Each Person Each Accident Each Accident
Automobile Liability
Owned Automobiles
$
500,000
$1,000,000 $ 500,000
Hired Automobiles
$
500,000
$1,000,000 $ 500,000
Non -Owned Automobiles
$
500,000
$1,000,000 $ 500,000
Workers' Compensation
$
Statutory
Employers' Liability
$1,000,000 per
employer
II. General Liability
Premises Operations
$1,000,000
$5,000,000
$1,000,000
Elevators
(if applicable)
$1,000,000
$5,000,000
$1,000,000
Independent
Contractors
$1,000,000
$5,000,000
$1,000,000
Products - Completed
Operations
$1,000,000
$5,000,000
$1,000,000
Contract Liability
$1,000,000
$5,000,000
$1,000,000
Umbrella Liability
$1,000,000
$1,000,000
$1,000,000
a. The general liability policy shall contain the following
special endorsements that shall be noted on or attached to the
standard certificate of insurance:
1. An endorsement naming the City of Vernon, its officers,
and employees as insureds under the policy.
2. An endorsement providing the City of Vernon thirty (30)
days notice of cancellation or material reduction of
coverage.
3. An endorsement providing coverage for all operations
under the City of Vernon Contract for this project.
4. Such other endorsement as may be required by addendum
hereto.
b. In addition to the standard certificate of insurance, proof of
general and umbrella liability coverage shall be furnished in
the form checked below.
X For each policy, a notarized letter from the underwriter
or carrier certifying that the coverage and statements
in the standard certificate of insurance (attached
thereto) are true and correct and that the signator is
an officer authorized to so certify.
A copy of each policy certified by an officer of the
underwriter or carrier and notarized.
-34-
PROOF OF INSURANCE APPROVAL AS TO FORM
The proofs of the following insurance coverage have been
received and approved as to form:
(1) Broad Form Contractual Liability.
(2) Automobile Liability.
(3) Worker's Compensation.
(4) Employer's Liability.
(5) General Liability.
(6) Umbrella Liability.
Dated:
EDUARDO OLIVO
City Attorney
-35-
INSURANCE FORM LETTER
(To be issued on insurance carrier letterhead)
Date: S
A
City Clerk M
City of Vernon p
4305 Santa Fe Avenue L
Vernon, CA 90058 E
Re: Insurance for City of
Vernon
(description of permit or Contract)
Policy
Number(s)
Named
Insured:
City Clerk:
I hereby certify that the certificate of insurance attached
hereto and made a part hereof by reference truly and accurately
represents the above cited insurance policies and the insurance
coverage of each for the named insured issued by
(insurance
carrier).
The City of Vernon,its officers, and employees are
included in said policies as additional insureds and the City of
Vernon will be provided with thirty (30) days written notice of
cancellation or material reduction of coverage.
I certify that I am an officer of the insurance carrier
named herein and that I am authorized to sign this certificate
on behalf of said insurance carrier.
Signature
(Notary)
Title
M
(BANK OR SAVINGS AND LOAN ASSOCIATION LETTERHEAD)
Date: S
A
M
City of Vernon P
4305 Santa Fe Avenue L
Vernon, CA 90058 E
IRREVOCABLE LETTER OF CREDIT
Contract
Gentlemen:
Please consider this letter as an Irrevocable Letter of Credit pledging that
in the amount of $ is/are deposited and guaranteed to insure the
Contractor's faithful performance under an Agreement with the City of Vernon for the
construction of a 40,000 square foot tilt up building in lieu of withholding any funds due
the Contractor under progress payments. In compliance with Part 5 (commencing with
Section 22300) of Division 2 of the California Public Contract Code, we agree that the
funds or other securities designated by this instrument shall become trust funds for the
purposes set forth in this instrument. This instrument shall terminate upon formal
acceptance by the City Council of the City of Vernon of the work performed by the
Contractor under said Agreement.
Any claims under this Irrevocable Letter of Credit shall be presented in the
following manner:
The City's written statement, signed by the Director of Community Services,
certifying that there has been loss, damage or liability resulting from the
Contractor's duties and obligations under the Agreement, or from negligence,
act or omission of the Contractor, its agents, servants and employees (such
statement to be substantiated by an attached detailed report) in the amount of
the accompanying sight draft on us and that the amount of this draft is
therefore now due and payable.
The above statement will be all that is required to certify the amount set forth under this
Irrevocable Letter of Credit, dated this date, is due and payable to the City of Vernon
pursuant to the above -stated Agreement for
(Name of Bank or Savings and Loan Association)
By
President
By
Secretary
ALL SIGNATURES MUST BE NOTARIZED
Attach proper jurats
• Securities as listed in Section 16430 of the Government Code, or bank or
savings and loan certificates of deposit.
37
C.E.G CONSTRUCTION
PICO RIVERA, CALIFORNIA Exhibit "A"
PROJECT: Two Story Office Building December 5, 2002
Estimated By
ADDRESS: 3375 Slauson Avenue Jeff Shanholtzer
CITY: Vernon, CA
ESTIMATED
SPEC.
BUDGET
NO.
SUB -TRADE
AMOUNT
1 1-005
PROJECT GENERAL REQUIREMENTS
108,205
2 2-015
GRADE STAKING
3,883
3 2-070
SELECTIVE DEMOLITION
3,750
4 2-200
EARTHWORK
56,326
5 2-270
EROSION CONTROL
1,490
6 2-510
ASPHALT PAVING
64,729
7 2-570
SITE CONCRETE
75,779
8 2-580
PAVEMENT MARKING & BUMPERS
1,176
9 2-730
SEWER CONNECTION
7,500
10 2-840
WROUGHT IRON FENCE & GATES
35,000
11 2-865
SITE FURNISHINGIBIKE RACK
700
12 2-910
LANDSCAPE and IRRIGATION
39,266
13 3-210
REINFORCING STEEL
100,900
14 3-310
2-1/2 and 4-1/2 "CONCRETE DECKING
40,000
15 3-460
TILT -UP - GENERAL
184,200
16 5-120
STRUCTURAUMISCELANEOUS STEEL
113,090
17 6-115
SECOND FLOOR FRAMING
192,600
18 6-170
PANELIZED ROOF STRUCTURE
79,000
19 7-200
INSULATION & R-19 UNDER ROOF INSULATION
61,390
20 6-220
MILLWORK
11,833
21 7-510
BUILT-UP ROOFING
19,400
22 7-620
SHEET METAL FLASHING & TRIM
5,970
23 7-920
SEALANTS and CAULKING
3,250
24 8-210
WOOD DOORS & FRAMES
30,467
25 8-360
ROLLUP DOORS
4,200
26 8-810
GLASS & STOREFRONT
49,840
27 9-250
DRYWALL
122,496
28 9-310
CERAMIC WALL & FLOOR TILE (RESTROOMS ONLY)
36,432
29 9-510
ACOUSTICAL CEILING
51,415
30 9-900
PAINTING INTERIOR & EXTERIOR
24,096
31 10-800
TOILET & BATH ACCESSORIES
5,900
32 11-161
DOCK BUMPERS
1,220
33 14-240
HYDRAULIC ELEVATORS 2500 LBS / 5000 LBS
113,250
34 15-300
FIRE PROTECTION
75,757
35 15-400
PLUMBING
59 55w
36 15-500
HVAC
225,000
37 16-100
ELECTRICAL
182,107
38 20-030
SURVEY
2,800
39 20-060
GEOLOGICAL SOIL REPORT
3,800
40 21-010
PROCESSING AND COORDINATION
3,000
41 21-020
ARCHITECTURAL DESIGN
47,000
42 21-025
CIVIL ENGINEERING
8,500
43 21-030
STRUCTURAL ENGINEERING
15,500
44 21440
MECHANICAL ENGINEERING
16,300
45 21-045
ELECTRICAL ENGINEERING
13,750
46 21-050
LANDSCAPE ARCHITECTURE
2,850
47 22-010
PROJECT SUPERVISION
162,308
SUBTOTAL
2,466,975
INSURANCE
14,797
MARK-UP/ FEE:
223,359
TOTAL BASE BID AMOUNT
2,705,131
Exhibit `B"
C.E.G. Construction
Proposal Qualifications
For Building Shell & T.I.
Project: 3375 Slauson Avenue Vernon, CA
December 5, 2002
This is based on site plan, A-1, A-2, A2.land A-3 dated 12/05/02 provided By O.C. Engineering and
revised as per City of Vernon comments
Grade Staking:
Approximately 77,666 SF, Coordinate control plan, rough grade stakes and saw cut lines included but not
limited to, building pad and parking blue tops, building pad certification, building corner stakes, curb and
gutter stakes, sewer line stakes, electrical transformer stakes, trash enclosure stakes, wall stakes, and final
grade certification.
Selective Demo:
Saw cut break and remove Approximately 1,250 SF city sidewalk for new driveway approach.
Earthwork:
Construct Approximately 20,000 SF building pad, perform all earthwork, and grading together with
miscellaneous removals, clear & grub site, mass overexcavation (site & bldg. pad) cuts & fills, prepare
project by importinglexporting materials to achieve proper grade elevations, materials to be compacted to
optimum density, rough grade site and building pad to +/- 1/10 th ft., cut and grade for parking lot, planters,
curbs and gutters, backfill exterior building walls.
Erosion Control:
Furnish and place erosion control poly birdseye sandbags (2) high at required locations and gravel
driveway entrance per erosion control plan.
Asphalt Paving Work:
Approximately 39,230 SF of asphalt paving, includes applying weed killer, fine grade site area to receive
3" asphalt concrete paving over 4" of class II base, roll to compact, and 1' slot patch of asphalt at new drive
approach.
Site Concrete:
Offsite: One new driveway approach Approximately 400 SF.
Offsite: Approximately 850 SF new city sidewalk, curb, gutter.
Approximately 360 SF 6" trash enclosure slab.
Approximately 1,600 LF 6" type A planter curb approx.
Approximately 4,184 SF 4" path of travel around building with enhanced front entrance and rear patio slab.
Lobby area, saw cut 4' diagonal square pattern and apply concrete stain finishing, color and pattern to be
specified in final drawings, all other areas to be sealed.
Concrete truck well.
Concrete truck dock.
Bases for exterior light standards.
Pavement Markings and Bumpers:
A.C. Paving, furnish and install all parking bumpers, parking stall striping, fire lane markings, marked
handicapped stalls (striping, markings, signs, paths of travel signs).
Sewer Connection:
Connecting sewer lateral in the street
Wrought Iron Fence & Gates:
Approximately 7361f X 8' of wrought iron fence. Two (2) wrought iron sliding gates at the main entry on
Slauson. Wrought iron fencing starts at the northwest corner of the property and runs south to Slauson
Avenue and from the southwest corner to the southeast corner (along Slauson Ave) and north along the east
property line from building to northeast comer.
Site Furnishing/Bike Rack:
One (10) stall bike rack.
Landscape and Irrigation:
Approximately 14,000 SF of miscellaneous foliage, trees, shrubs, grass and required irrigation.
Reinforcing Steel:
Furnish, fabricate and tie all deformed/bent-reinforcing bars included but not limited to foundations, slab
on grade, tilt -up walls, and trash enclosure.
Concrete Decking:
Approximately 20,000 SF of poured in place 20 gauge corrugated metal deck filled with concrete. Depth
varying from 2'h" and 4 V2 The second floor will be designed for light manufacturing with a 75 psf live
load.
Tilt -Up:
Approximately 20,000 SF building shell included but not limited to, forming, place and finish of concrete
for foundations, slab, walls, and erection of walls.
Structural/Miscellaneous Steel:
Includes, but is not limited to, all required columns and beams for roof framing, mezzanine framing, curtain
wall framing, trash gates, shop coat primer, templates, and anchor bolts, ledger angles and splice plates,
doorjamb guards, embeds, angle cord ties, wall railings, guard railing, structural steel canopy and interior
roll -up door columns, rain gutters, steel stairs, hand railings, pipe bollards, sheet metal decking for
mezzanine, hardware and field welding related to this scope of work.
Second Floor Framing:
Approximately 20,000 SF includes a steel truss flooring system, framed openings, blocking, catalog
hardware, steel -to -steel connections and furnish embedded catalog hardware, ties and related welding.
Panelized Roofing:
Approximately 20,000 SF panelized roofing, includes a steel truss roof system, framed air conditioning
openings, roof hatch opening, roof blocking, plywood sheathing, catalog hardware, steel to steel
connections and furnish embedded catalog hardware, ties and related welding.
Insulation:
First floor: Unfaced Batt. Insulation — exterior walls.
Second floor: Unfaced Batt. Insulation — exterior walls.
Below Roof Unfaced Batt. Insulation R-19.
To comply with Title 24 Energy Regulations.
Built-up Roofing:
Approximately 20,000 SF 4 ply Class A built-up roofing system and sbs modified flashing, mastic all
flashing and protrusions.
6
Sheet Metal Flashing & Trim:
Approximately 400 LF Sheet metal flashing & trim.
Roof Access Hatch 30" x 3'-0.
Over flow scuppers.
Sealant & Caulking:
All Non rated and fire rated concrete panel expansion joints and all other rated penetrations.
Wood Door and Frame:
(29) Doors and frames ground floor.
(18) Doors and frames second floor.
Roll -Up Door:
(1) 24 Gauge heavy duty 8 ' x 12' roll -up door.
(3) 24 Gauge heavy duty 8' x 12' roll -up doors in warehouse.
Glass & Storefront:
Clear anodized finished aluminum storefront windows, curtain wall assembly at main entrance, panel
railing at mezzanine, doors and sidelights, I/a" tempered glass, (color to be selected by owner), gaskets,
hardware, weather-stripping, MS lock with cylinder, cylinder guard and lock indicator, threshold, and door
pulls, overhead concealed closures.
Drywall & Metal Studs:
Includes metal stud framing, gypsum wallboard, taping, sanding, and finish.
First floor:
Furred walls at perimeters.
Approximately 591 LF
Interior walls.
Approximately 1,339 LF
Ceiling lids at fire corridor and restrooms.
Approximately 4,080 SF
Second floor:
Furred walls at perimeters.
Approximately 591 LF
Interior walls.
Approximately 1,019 LF
Ceiling lids at fire corridor and restrooms.
Approximately 3,564 SF
Millwork/Cabinets:
First floor: reception area furnish and install 20' LF of prefabricated plastic laminated desk top with upper
granite counter top and wood vainer front paneling, including two (2) base cabinets.
First floor: Furnish and install 22' LF of prefabricated plastic laminated lower cabinets with counter top
and two (2) 6' LF of prefabricated plastic laminated upper cabinets.
Second floor: Furnish and install 12' LF of prefabricated plastic laminated lower cabinets with counter top
and 4' LF of prefabricated plastic laminated upper cabinets.
Ceramic Wall & Floor Tile:
Ceramic floor & wall tiling at (4) restrooms 44" above finish floor.
Acoustical Ceiling Tile:
Install white 2X4 Donn tee -bar and non -directional fissured lay -in ceiling tiles mezzanine and first floor
areas as per floor plan along with installing seismic wiring using W' conduit compression posts. The T-bar,
as specified in the scope of work, is proposed throughout all the office areas to be within the future
partitions.
Flooring:
Lobby area, saw cut 4' diagonal square pattern and apply concrete stain finishing, color and pattern to be
specified in final drawings, all other areas to be sealed.
9
Painting:
Prepare, prime and finish paint all exterior concrete walls, all interior drywall, officelmezzanine drywall
build out, and doors, handrailings, trash enclosure and gates, pipe bollards, exterior side of rollup door, all
paint is to be ICI.
Toilet & Bathroom Access:
Four restrooms with toilet and lavatory accessories and partitions.
Dock Bumpers:
Heavy duty laminated rubber dock bumpers at all truck positions.
Hydraulic Elevators:
One (1) service car, electric hydraulic control, 5000 pound capacity and one (1) passenger car, electric
hydraulic control, 2,500 pound capacity, 100 feet per minute, two (2) stops, two (2) openings in line, # 4
stainless steel entrance doors and frames, D.C. powered with "infrared" multi -beam LAMBDA Non -
contact door reversal device, car enclosure steel framed shell with wood canopy, vertical plastic laminated
raised panels at rear and side walls, # 4 stainless steel car front return, car door and rear handrails,
aluminum eggcrate suspended ceiling, aluminum car sill, single speed exhaust fan, emergency car lighting,
braille markings, telephone cabinet and wiring, certificate frame, one (1) "advanced" car operating panel,
Digital car position indicator, in -car direction lantern, car arrival gong, special features included
independent service, sill support angles, earthquake restraintstseismic design per code, fireman's service as
required by code, U/L wiring, UAL labeled entrances, pad hooks, ADA approved telephone, solid state soft
start.
lire Sprinkle System:
40,000 SF of .33/2000 first floor and second floor, includes engineered drawings for automatic fire
sprinkler system, underground fire service main including excavation and properly backfilled, compacted
to optimum density, control valve riser assemblies complete with flow switch, drain valve and gauge
assembly, sprinkler heads, orifice, backflow prevention device, post indicator valves, fire department
connection, detector check valve, seismic bracing, PVC inspectors test drain discharge line to face of curb,
(2) on -site fire hydrant and sprinkler system at loading dock & T.I. drops .
Plumbing:
Approximately 3001f of Sewer underground. Add two 4" sewer sub outs located on the ground floor
branching out to two main offices areas.
Approximately 3001f of Domestic water underground.
Roof Drains.
Vent pipes.
Floor drains.
Sump pump at loading dock.
Fixture and (2) Water Heater.
Floor clean out, pressure regulator & backflow device.
Condensation line for A/C.
(2) Drinking fountains.
With the tenant improvements, the revised estimate includes complete plumbing
H.V.A.C:
Furnish and install 100 tons of air conditioning and heating; per specification of Kamal' s Iskander &
Associates Inc. including but not limited to fresh air hoods and filter racks, roof mounted exhaust fans,
smoke detectors, supply duct mounted ceiling mounted exhaust fans, 7-day programmable thermostats,
plenums fittings and boxes, ducting, supply registers, return grilles, balance dampers, unit start ups and in-
house air balance.
Electrical:
Provide all required Electrical, including: Primary & secondary service, from existing power pole to Main
service - 1200 amp, 277/480 volt, or similar for new building, elevator hook-up, gear package, grounding,
4
slab box, all conduit, wire, panels, and transformers, exit signs, area switches. Provide all required
electrical, including: 375 prismatic lighting fixtures and 180 — 15 amp convenience receptacle circuits, 18
decorative lobby / office lighting fixtures, 65 corridor and stair well lighting fixtures, 24 rstroom and core
office lighting fixtures, 30 emergency lighting fixtures, 190 wall communication J box stub ups for
computer/voice & data, provide all required line voltage and disconnect for HVAC equipment. Exterior
light poles and exterior building lights, hook-up for sump pump, dock lighting and (1) keyless access
system at front entrance.
General Requirements:
Contractor to provide all work as detailed in the attached EXHIBIT "A" for the set fee as listed.
Exclusions:
1. Standard exclusions:
a. Design and installation of fire monitoring or burglar alarm systems.
b. Hazardous material abatement.
c. Building plan check or permits.
e. County & City fees, assessments, permits, testing & inspections, fire service lateral to public
right of way and water meter.
f. Allowances for scope changes beyond the present definition such as special equipment not
listed or changes in materials, quantities or quality.
g. Removal of underground obstructions such as rocks, unknowing foundations, tanks, utilities,
etc.
h. Liquidated damages
i. Fire insurance and builder's all risk insurance (including earthquake and flood).
j. Cost to provide general contractor's performance and payment bonds. (General Contractor is
bondable).
k. Local fees and assessments as might be imposed such as sewerage facilities charges, city
occupational tax, fees to fund fire hydrants and water improvements.
I. Relocation of public utilities such as (Telephonetelectrical poles, water meters, traffic signals,
valves, fire hydrants) in the public right of way.
in. Offsite improvement other than what is mentioned above.
2. Specified exclusions:
a. Build out of individual future offices.
b. Carpet and Vinyl Tile (Excluding Restroom Area).
c. Electrical Distribution for specified tenant requirements.
d. Refrigerator and Appliances.
e. Data, Computer and Telephone Wiring.
f. National Pollution Discharge Elimination System Standard Urban Stormwater Mitigation
Plan Requirements.
PREPARED BY:
Jeff Shanholtzer, Estimator/C.E.G.Construction
Phone: (562) 948-4850 — ext 215 FAX: (562) 948-4456
5
AGREEMENT
THIS AGREEMENT (the "Agreement") is made, entered into,
executed in duplicate an to be performed in the City of Vernon,
California, as of the day of January, 2003.
BY AND BETWEEN
CITY OF VERNON, a municipal
corporation (hereinafter
referred to as "City")
4305 Santa Fe Avenue
Vernon, CA 90058
CHALMERS CORPORATION, a
California corporation d.b.a.
C.E.G. Construction
(hereinafter referred to as
"Contractor")
7901 Crossway Drive
Pico Rivera, CA 90660
IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND
CONDITIONS HEREIN SET FORTH, THE PARTIES DO HEREBY AGREE AS
FOLLOWS:
Article 1. GENERAL
Section 1. Scope of Work
Contractor will furnish or cause to be furnished all plans,
labor, equipment, tools, and material and will perform all work
described in the Contract Documents attached hereto and
incorporated herein by this reference using its own employees
and/or subcontractors. More specifically, Contractor agrees to
construct and complete in good workmanlike and substantial
manner, a two story concrete reinforced tilt -up building
approximately 40,000 square feet in size (hereinafter referred
to as the "structure", with the terms "project" and "work"
sometimes being used in this Agreement to refer to Contractor's
work on and construction of the structure and related site
work). The structure will be constructed upon the real property
commonly known as 3375 Slauson Avenue in the City of Vernon
(hereinafter referred to as "the Property").
Contractor has submitted a Proposal, dated December 5,
2002, that specifies the work it will perform under this
Agreement. The Proposal is contained in Exhibit "A" and Exhibit
"B" attached hereto and incorporated herein by this reference.
-1-
As part of its Proposal, Contractor has developed an initial set
of plans for the project, identified as the site plan prepared
by O.C. Engineering, dated December 5, 2002. Contractor will
prepare a set of detailed plans and specifications for the
project as it progresses. The plans and specification must
conform to all applicable building code standards. Contractor
will submit all plans and specifications to the City for review
and approval. The work hereunder must be done in strict
conformity with the plans and specifications approved by the
City.
Section 2. Compensation
(a) The Proposal
The City agrees to pay Contractor a sum of TWO MILLION
SEVEN HUNDERED FIVE THOUSAND ONE HUNDRED THIRTY-ONE DOLLARS
($2,705,131.00) for all of the work identified the Contract
Documents.
(b) Reimbursable Expenses
All County and City fees, assessments, testing and
inspection fees, and taxes are to be paid by the City. In order
to expedite the progress of the work, Contractor will pay these
costs and seek reimbursement from the City. The expenses will
be paid upon approval of the City Administrator. Any other
expenses not identified herein may only be billed if advance
written approval has been obtained from the City Administrator.
Section 3. Payments
(a) Monthly Progress Payments
On or about the 25th day of each month, the Contractor
shall submit to the City an application for its monthly progress
payment. The application shall contain an estimate of the amount
and value of all the work performed by the Contractor since the
date of its last progress payment application. The City's
Representative shall perform a quantity validation prior to
approving the monthly progress payment.
The City shall pay the Contractor, the amount of the
approved monthly progress payment, less 10% retention. The
monthly progress payment may also be reduced by the following:
(1) amounts due to the City for equipment, services or materials
furnished by the City in connection with work done on the
-2-
project; (2) amounts of any claims or liens, and (3) amounts
required to be deducted by Federal, State or local governmental
authorities. Payment shall be made within twenty (20) calendar
days of receipt of the Contractor's monthly progress payment
application.
No monthly payment shall be construed as acceptance of the
work, or any portion thereof, nor shall such payment preclude
the City from demanding and recovering from the Contractor such
damages as may be sustained by reason of the Contractor's
failure to fully perform under the Agreement.
(b) Payment of the Retention
Payment of the retention shall be made thirty-five (35)
calendar days after the recordation of a Notice of Completion by
the City or if a Notice of Completion is not recorded sixty-five
(65) calendar days after acceptance of the completed project.
The acceptance will be made only by an action of the City
Council of the City. Acceptance of payment of the retention by
the Contractor shall constitute a waiver of all claims against
the City arising under this Agreement.
Section 4. Contract Documents
The complete Agreement includes all of the Contract
Documents set forth herein, to wit: (1) Contractor's Proposal,
dated December 5, 2002 and identified herein as Exhibit "A" and
Exhibit "B", (2) this Agreement, (3) the forms including the
Performance Bond, the Labor and Material Bond, the Proof of
Insurance, the Workers' Compensation Certificate, (4) the plans
drawn by O.C. Engineering, dated December 5, 2002 (sheets A-1,
A-2, A-2.1, and A-3), (5) the detailed plans and specifications
that will be prepared during the progress of the work; and (6)
the Standard Specifications.
Section 5. Compliance with Provisions of Law
The work shall be completed in compliance with all
applicable Federal, state and local laws, including, but not
limited to ordinances, rules and regulations of competent public
authority.
Section 6. Costs and Attorney's Fees
In any action or proceeding brought to enforce the
provisions of this Agreement, the court shall award reasonable
-3-
costs and expenses, including attorney's fees, to the prevailing
party.
Section 7. Notices
Any Notice required or permitted hereunder shall be given
by personal delivery or by first class mail, postage prepaid,
To: Bruce V. Malkenhorst
City Administrator
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
To: Trace Chalmers/President
CEG Construction
7901 Crossway Drive
Pico Rivera, CA 90660
Section 8. Conflict with Plans and Specifications
The plans and specifications and other contract documents
are intended to supplement each other, so that any work
described in one or more and not mentioned in another are to be
executed as if they were mentioned and set forth in each, except
if the context requires otherwise.
Any conflict between the plans and specifications and this
Agreement shall be brought to the attention of the City
immediately, so that such conflict may be resolved to the
satisfaction of the City. Generally, in the event of any
inconsistency or conflicts between provisions of any agreements,
plans and specifications, et cetera, prepared and/or executed
with respect to this Agreement, change orders and written
amendments to this Agreement executed by both parties shall
prevail over this Agreement, which shall prevail over the
approved plans and specifications, which shall prevail over any
other written reports and documents in existence as of the date
of this Agreement. The resolution of any conflicts shall
require good faith discussions between the parties, but shall be
resolved in the City's sole discretion.
Section 9. Assignment
The Contractor shall not assign this Agreement or payments
due hereunder. The City may assign its duties and obligations
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under this Agreement at its sole discretion, provided that the
assignee expressly assumes all of the City's obligations under
this Agreement and is financially capable of satisfying the
obligations under this agreement.
Section 10. Paragraph Headings
The paragraph headings herein are for the convenience of
the parties and shall not affect the interpretation of this
Agreement.
Section 11. Authority of the City's Representative
The City's Representative, acting in its reasonable
discretion, shall decide all questions which may arise as to the
quality or acceptability of materials furnished and work
performed, and as to the manner of performance and rate of
progress of the work, and all questions as to the interpretation
of the plans and specifications. Any and all issues involving
the payment of extra compensation under this Agreement are to be
referred to the City Engineer.
Article 2. WAGES, HOURS and WORKING CONDITIONS
Section 12. General Prevailing Wages
The general prevailing wages are not applicable to this
project.
Section 13. Hours of Work
(a) The time of service of any worker employed on the
Agreement is limited to eight hours during a calendar day and
forty hours during a calendar week. If an employee works in
excess of the foregoing hours, the employee will be compensated
at a rate of one and one-half times their basic rate of pay.
(b) The Contractor shall keep and make available until
ninety (90) calendar days after completion of this Agreement an
accurate record showing the name of and actual hours worked each
calendar day and each calendar week by each worker employed by
him on the work hereunder.
(c) The Contractor shall, as a penalty, forfeit to the
City $50.00 for each worker employed on the work by the
Contractor or by any subcontractor for each calendar day during
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which such worker is required or permitted to work more than
eight hours a calendar day or forty hours in one calendar week.
Section 14. Apprentices
The Contractor is responsible for complying with the
provisions of Labor Code Section 1777.5 dealing with the
employment of apprentices on the job site.
Section 15. Subcontractors
(a) The Contractor shall comply with the provisions of the
"Subletting and Subcontracting Fair Practices Act" contained in
Public Contract Code Sections 4100 et seq.
(b) The Contractor shall submit to the City the following
information:
(1) The name and location of the place of business of
each subcontractor who will perform work or labor or render
services to the Contractor hereunder, or a subcontractor
licensed by the State of California, who, under subcontract to
the Contractor, specially fabricates and installs a portion of
the work or improvement according to detailed drawings contained
in the plans and specifications, in an amount in excess of one-
half of one percent of the Contractor's total bid.
(2) The portion of the work which will be done by
each such subcontractor.
(3) The prime Contractor shall list only one
subcontractor for each portion of work as defined by the
Contractor in its Proposal.
Section 16. Discrimination
The Contractor shall not refuse to employ or promote any
person, shall not discriminate against any person with respect
to compensation received or terms and conditions of employment,
and shall not discipline or discharge any person employed by him
because of said person's race, religion, creed, color, national
origin, ancestry or sex. In addition, Contractor shall not
refuse to accept otherwise qualified employees as indentured
apprentices solely on the grounds of race, religion, creed,
color, national origin, ancestry or sex.
Section 17. Safety
The Contractor and all subcontractors shall comply with the
provisions of the Safety and Health Regulations for
Construction, promulgated by the U.S. Secretary of Labor under
Section 107 of the "Contract Work Hours and Safety Standards
Act", as set forth in Title 29, C.F.R. and by the State of
California, Division of Industrial Safety.
Section 18. Character of Workers
Only competent workers shall be employed on this project.
Any person employed, who is found to be incompetent,
intemperate, troublesome, disorderly or otherwise objectionable,
or who fails or refuses to perform his work properly and
acceptably, shall be immediately removed from the project by the
Contractor and shall not be re-employed on the project.
Article 3. INSURANCE, INDEMNIFICATION and BONDS
Section 19. Insurance
Prior to commencing work hereunder, the Contractor shall
provide the City with proof of insurance naming the City and its
consultants and each of its directors, officers, agents, and
employees as additional -named insureds on a policy or policies
of insurance providing and maintaining the coverages set forth
in the Insurance Schedule attached hereto; provided, that
coverage is not required for active negligence of the City to
the extent that indemnification for the City's active negligence
would be invalid under Section 2782(b)of the California Civil
Code. Said proof of insurance shall also provide that said
policy or policies shall not be canceled or materially reduced
without giving at least 30 days prior written notice to the
City.
Section 20. Indemnification
The Contractor shall indemnify, protect, defend, and hold
harmless the City and its consultants, and each of its
directors, officers, agents, and employees from and against any
and all claims, demands, losses, damages, liabilities, fines,
charges, penalties, orders, judgments, and all costs and
expenses incurred in connection therewith, including reasonable
attorney's fees and costs of defense arising, directly or
indirectly, in whole or in part, out of the services performed
by the Contractor under this Agreement, except to the extent
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arising from or caused by the active negligence or willful
misconduct of the City, its officers, agents, or employees.
Section 21. Workers' Compensation
The Contractor shall secure payment of compensation to his
employees pursuant to Labor Code Section 3700, and shall obtain
employers' liability insurance as set forth in the Insurance
Schedule. Prior to performing the work hereunder, the
Contractor shall submit to the City the Workers' Compensation
Certificate set forth herein or an executed certificate of
workers' compensation insurance as provided herein. Such
insurance shall include a waiver of subrogation endorsement
naming the City, and its consultants, and each of its directors,
officers, agents, and employees.
Section 22. Labor and Material Payment Bond
Before entering upon the performance of the work hereunder,
the Contractor shall file an approved Labor and Material Bond
with the City. Said bond shall be in the sum of 100% of the
total amount payable by the terms of this Agreement to the
Contractor. Said payment bond shall be in substantially the
form of the payment bond attached hereto.
Section 23. Performance Bond
The Contractor shall execute and deliver to the City for
its approval and acceptance a Performance Bond in the amount of
100% of the total amount payable by the terms of this Agreement.
Said bond shall be payable by surety or sureties to the City in
the event the Contractor fails to fully perform his obligations
hereunder. Said bond shall be in substantially the form of the
Performance Bond attached hereto.
Article 4. PERFORMANCE
Section 24. Time for Completion
Contractor agrees to commence construction promptly after
issuance of all building and other permits with respect to the
Property and the structure, and to prosecute the work thereafter
diligently to completion, and in any and all events to
substantially complete the structure within 260 calendar days
after the receipt of all building permits needed for the
project.
Section 25. Force Majeure
Neither Party shall be considered in to be in default in
any of its obligations under this Agreement when a failure of
performance shall be due to an uncontrollable force. The term
"uncontrollable force" shall mean any cause beyond the control
of the party affected, including, but not restricted to, flood,
earthquake, storm, fire, lightening, epidemic, war, riot, civil
disturbance or disobedience, sabotage, or embargoes of the
United States Government or any other government, which by
exercise of due diligence such party could not reasonably have
been expected to avoid and by exercise of due diligence has been
unable to overcome. Either party rendered unable to fulfill any
of its obligations under this Agreement by reason of an
uncontrollable force, shall give written notice within five
business days of such fact to the other party and shall exercise
due diligence to remove such inability with all reasonable
dispatch.
Section 26. Utility Relocation
(a) As between the parties, the City is responsible for
the timely removal, relocation or protection of existing main or
trunk line utility facilities located on the job site, unless
such utilities are identified by the City in the plans and
specifications. The Contractor shall be compensated by the City
for the costs of relocating, for repairing damage not due to the
failure of the Contractor to exercise reasonable care, for
removing or relocating such utility facilities not included in
the plans and specifications with reasonable accuracy, and for
equipment on the project necessarily idled during such work.
The Contractor shall not be assessed liquidated damages for
delay in completion of the project, when such delay is caused by
the failure of the City or the owner of the utility to identify
or provide for removal or relocation of such utility facilities.
(b) Nothing herein shall be deemed to require the City to
indicate the presence of existing service laterals or
appurtenances whenever the presence of such utilities on the
site of construction can be inferred from the presence of other
visible facilities, such as buildings or metering junction boxes
on or adjacent to the site of construction; provided, however,
nothing herein shall relieve the City from identifying main or
trunk lines in the plans and specifications.
(c) If the Contractor, while performing the contract,
discovers utility facilities not identified by the City in the
contract plans or specifications, he shall immediately notify
the City and utility in writing.
Section 27. Public Convenience
(a) The Contractor's operation shall cause no unnecessary
public inconvenience, beyond that reasonably necessary to allow
the performance of the work in the ordinary course of business.
The access rights of the public shall be considered at all
times. Unless otherwise authorized, traffic shall be permitted
to pass through the work or an approved detour shall be
provided. Safe, adequate, continuous and unobstructed
pedestrian and vehicular access shall be maintained to fire
hydrants, water valves, residences, commercial and industrial
establishments, churches, schools, parking lots, service
stations, motels, fire and police stations, and hospitals,
unless other arrangements are made satisfactory to owners
thereof.
(b) Vehicular access to residential driveways shall be
maintained to the property line except when necessary
construction precludes such access for reasonable periods of
time.
(c) Grading operations, roadway excavation and embankment
construction shall be conducted by the Contractor in a manner to
provide a reasonably satisfactory surface for traffic. When
rough grading is completed the roadbed surface shall be brought
to a smooth, even condition satisfactory for traffic.
(d) The Contractor shall comply with all applicable State,
County and City requirements for closure of streets. The
Contractor shall provide barriers, guards, lights, signs,
temporary bridges, flagmen and watchmen advising the public of
detours and construction hazards. The Contractor shall also be
responsible for compliance with additional public safety
requirements that may arise during construction. The Contractor
shall furnish and install and, upon completion of the work,
promptly remove all signs and warning devices.
(e) At least 48 hours in advance of closing or partial
closing or of reopening any street, alley, or other public
thoroughfare, the Contractor shall notify the police, fire,
traffic and engineering departments of the City and any other
jurisdictional agencies involved and shall comply with their
requirements.
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Section 28. Excavations
(a) Excavation Safety
During the excavation of trenches five (5) feet or more in
depth, the Contractor shall submit to the City, for its
approval, a detailed plan showing the design of shoring,
bracing, sloping, and other provisions to be made for worker
protection from the hazard of caving ground. Said plan shall be
at least as effective as that required by the Construction
Safety Orders of the California Division of Industrial Safety.
If said plan varies from the shoring systems standards
established by said Safety Orders, the plan shall be prepared by
a registered civil or structural engineer.
(b) Trenches
During the excavation of trenches four (4) feet below the
surface, the following provisions apply:
(1) The Contractor shall promptly, and before the
following conditions are disturbed, notify the City, in writing,
of any:
(i) Material that the Contractor believes may be material
that is hazardous waste, as defined in Section 25117
of the Health and Safety Code, that is required to be
removed to a Class I, Class II, or Class III disposal
site in accordance with provisions of existing law.
(ii) Subsurface or latent physical conditions at the site
differing from those indicated.
(iii) Unknown physical conditions at the site of any
unusual nature, different materially from those
ordinarily encountered and generally recognized as
inherent in work of the character provided for in the
contract.
(2) The City shall promptly investigate the conditions,
and if it finds that the conditions do materially so differ, or
do involve hazardous waste, and cause a decrease or increase in
the Contractor's cost of, or the time required for, performance
of any part of the work shall issue a change order under the
procedures described in the contract.
(3) In the event that a dispute arises between the City
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and the Contractor whether the conditions materially differ, or
involve hazardous waste, or cause a decrease or increase in the
Contractor's cost of, or time required for, performance of any
part of work, the Contractor shall not be excused from any
scheduled completion date provided for by the contract, but
shall proceed with all work to be performed under the contract.
The Contractor shall retain any and all rights provided either
by contract or by law which pertain to the resolution of
disputes and protests between the contracting parties.
(c) Closure
The job site shall be completely fenced off to prevent any
public access to the area. In addition, at the close of each
working day, the Contractor shall plate all open excavations in
the public right of way in accordance with normal practice in
the industry and the rules, regulations, laws and ordinances of
the State of California, the County of Los Angeles, and the City
of Vernon.
Section 29. Exclusions
The following items are additional to and separate from the
work to be provided by Contractor as part of this Agreement, but
may be performed by Contractor for an agreed upon additional fee
at the request of the City: (a) consultations, negotiations and
preparation of documentation supporting the procurement of
project financing; (b) consultations and services other than
normal assistance in procuring building permits and/or appearing
before governmental authorities in connection with the project;
(c) interior design, including procurement and placement of
furniture, furnishings, artwork and decorations; (d) design,
coordination, management and other services supporting the
procurement of telephone systems, computer wiring networks, any
alarms, security systems and other special systems, which are
not a part of this Agreement; (e) offsite improvements beyond
the matters specified in this Agreement; (f) hazardous material
abatement; (g) building plan check, permits and fees; (h) county
and city fees, assessments, permits, testing and inspection; (i)
local fees and assessments as might be imposed such as sewage
facilities charges, city occupational tax, fees to fund fire
hydrants and water; (j) utility fees or charges; (k) deputy
inspection fees; (1) city taxes and license fees; (m) plan
duplication, (n) bond premiums for completion, payment and
performance bonds; and (o) the cost of abating or correcting
unforeseen conditions as determined by the Standard
Specifications for Public Works Construction.
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Section 30. Additional and/or Extra Work
The City may require changes in, additions to, or
deductions from the work to be performed or to the materials to
be furnished hereunder. Should the City at any time during the
progress of the work request any modifications, alterations, or
deviations in, or additions to, this Agreement or the plans and
specifications, it shall be at liberty to do so, and the same
shall in no way make void this Agreement, but the costs of the
item(s) subject to change (and agreed to by Contractor) shall be
added to the contract price and shall be paid to the Contractor.
No extra work shall be performed or change made unless in
the pursuance of a written order from the City stating that the
extra work or change is authorized and setting forth the basis
upon which payment therefore is to be made, and no claim for an
addition to the contract price shall be valid unless so ordered
and agreed to by the Contractor; provided, however, that nothing
in this article shall excuse the Contractor from proceeding with
the prosecution of the work so changed. The Contractor shall,
when required by the City, furnish an itemized breakdown of the
quantities and prices used in computing the value of any change
that might be ordered.
The adjustment, if any, in the amounts to be paid to the
Contractor by reason of any such change, addition or deduction
shall be determined by one or more of the following methods:
(1) A lump sum proposal from the Contractor.
(2) By applying the unit prices contained in the
Contractor's bid incorporated in the Contract
Documents or fixed by subsequent agreement between the
City and the Contractor.
(3) By proceeding with the work and to furnishing daily
reports of extra work. The daily report shall itemize
all costs for labor, materials, and equipment rental.
Reported labor costs shall include names and
classifications of the workers, the hours worked, and
the rates of pay. Reported equipment costs shall
include the type of equipment used, identification
number, the hours of operation, and hourly rate. All
records and reports shall be made immediately
available to the City's Representative.
When the City orders work to be done and there is a
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supplemental agreement between the City and the Contractor to
perform said work, the City reserves the right to approve the
method used by the Contractor to accomplish said work. At the
request of the City, the method to be used shall be defined in
the supplemental agreement prior to any work being performed by
the Contractor.
Section 31. Clean Up
Upon completion of the work, the Contractor shall remove
all debris and surplus materials from the work site and leave
the Property in a neat and orderly condition.
Section 32. Materials
(a) New Materials and Equipment
Unless otherwise specified, shown, or permitted by the City
all material and equipment incorporated in the work shall be new
and of current manufacture. The City may request that the
Contractor furnish manufacturer's certificates indicating the
quality of the material. No material shall be installed until
approved by the City's Representative.
(b) Inspection of Materials
All material furnished hereunder shall be subject to
inspection and testing by the City's authorized agents at the
City's expense. In the event that such inspection and testing
reveals material that does not comply with the Contract
Documents, the Contractor shall bear the cost of necessary
corrective measures as well as the cost of subsequent inspection
and testing.
(c) Defective Equipment or Materials
The inspection under Section 32(b) shall not relieve the
Contractor of any of its obligations under the Contract. Even
though equipment or material required to be provided has been
inspected, accepted, and included in a monthly pay application,
the Contractor shall, at Contractor's expense, replace or repair
any such equipment or material found to be defective or
otherwise non -compliant with the Contract Documents up through
the guarantee period in Section 43.
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(d) Storage of Materials
All material for use in the work shall be stored by the
Contractor in such a manner as to prevent damage from exposure
to the elements, from admixture of foreign materials or from any
other cause. The Contractor shall be solely responsible for
damage or loss of materials caused by exposure, weather or other
causes.
Section 33. Permits and Licenses
(a) The Contractor shall apply for and procure all permits
and licenses necessary for the work.
(b) The Contractor shall give all notices necessary and
incidental to the due and lawful prosecution of the work and
shall duly comply with the terms and conditions of all permits
and licenses.
Section 34. Land and Rights of Way
(a) The City shall provide, or arrange for the provision
of, the land and rights of way upon which the work is to be
constructed.
(b) The Contractor shall procure any additional rights of
way desired by the Contractor to facilitate construction of the
work. The Contractor shall enter into written agreements with
property owners for such purposes and shall provide the City
with copies of such agreements.
(c) Except as provided in Section 26, when the work
described in the Contract Documents is to be performed in the
vicinity of existing improvements, said improvements shall not
be disturbed or damaged. However, the Contractor may remove or
relocate improvements in the land and rights of way provided by
the City pursuant to Section 33(a).
Section 35. Plans and Working Drawings
(a) The approved plans shall be supplemented by such
working drawings as are necessary to control the work
adequately. All such drawings shall. be consistent with the
Contract Documents, true developments thereof, and reasonably
inferable therefrom. All such drawings shall be deemed written
instructions to the Contractor.
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(b) The Contractor will furnish to the City, free of
charge, copies of all drawings, and specifications reasonably
necessary for the execution of the work. The Contractor shall
keep one set of drawings and specifications in good order at the
job site and make them available to the City representative and
to the Contractor's representatives.
Section 36. Shop Drawings Submitted by the Contractor
(a) No portion of the work requiring a shop drawing
submittal shall be commenced until the submittal has been
reviewed by the City and returned to the Contractor with a
notation that the City has completed its review of the shop
drawing. Shop drawings are drawings, diagrams, illustrations,
schedules, performance charts, brochures and other data which
are prepared by the Contractor or any subcontractor,
manufacturer, supplier or distributor, and which illustrate some
portion of the material or work.
(b) The Contractor shall review, approve, and submit for
review by the City's Representative shop drawings for material
and equipment to be incorporated into the work. Four copies of
shop drawings shall be submitted to the City with a letter of
transmittal listing the drawings submitted. Drawings shall show
the name of the project, the name of the Contractor, and if any,
the names of suppliers, manufacturers, and subcontractors. Shop
drawings shall be submitted with promptness and in orderly
sequence so as to cause no delay in progress of the work.
(c) Shop drawings shall be complete. If the shop drawings
show any deviation from the requirements of the plans and
specification because of standard shop practices or other
reasons, the deviations and the reasons therefore shall be set
forth in the letter of transmittal.
(d) By approving and submitting shop drawings, the
Contractor represents that material, equipment and other work
shown thereon conforms to the plans and specifications except
for any deviation identified in the letter of transmittal.
(e) Within ten (10) calendar days after receipt of the
shop drawings, the City will return two prints of the drawings
to the Contractor along with its comments. The Contractor shall
resubmit corrected drawings, if the City has so requested.
Resubmitted shop drawings shall be processed in the same manner
as the original submittals. The Contractor's letter of
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transmittal accompanying its resubmitted shop drawings shall
highlight the revisions requested by the City.
(f) The City's Representative will review the shop
drawings only for general conformance with the design concept of
the project and general compliance with the plans and
specifications. The City's review of the shop drawings shall
not be construed as relieving the Contractor of its
responsibilities under the Contract, including but not limited
to: (1) providing material and equipment; (2) ensuring the
proper fitting and construction of the pipeline; (3) submitting
accurate and complete shop drawings; (4) selecting proper
fabrication processes and techniques; and (5) performing the
work in a safe manner.
Section 37. Supervision by the Contractor
The Contractor shall have a designated representative or
alternative representative present at the worksite whenever work
is in progress. The Contractor's designated representative or
alternate representative shall have authority to act for the
Contractor. Before starting the work, the Contractor shall
inform the City, in writing, of the name of its designated
representative. An alternate representative may also be
designated. Any communication between the City and the
Contractor's representative shall be deemed as a communication
to the Contractor. If the Contractor fails to have a designated
representative present at the worksite, the City's
Representative may give necessary direction or instruction to
the superintendent or foreman having charge of the specific work
to which the direction or instruction applies. The
superintendent or foreman shall comply with the direction or
instruction promptly and shall relay the City's communication to
the Contractor or its designated representative.
Section 38. Inspection of Work
(a) The City shall have access to the worksite at all
times to review and/or inspect the progress of the work, the
workmanship and the material being used.
(b) Whenever the Contractor changes its hours of
operation, notice shall be given to the City's Representative
prior to institution of the change. Any work done in the
absence of the City's Representative may be subject to
rejection, at the City's discretion.
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(c) All excavations that are to be backfilled shall be
inspected and approved by the City's Representative prior to
backfilling. The Contractor shall give the City's
Representative advanced notice of the backfilling.
(d) Inspection of the work by the City's Representative
shall not relieve the Contractor of the obligation to fulfill
the Contract. Defective work shall be corrected, notwithstanding
the fact that the City's Representative may have previously
accepted the defective work.
Section 39. Correction of Defective and Unauthorized Work
(a) All work that has been rejected shall be corrected, or
removed and replaced by the Contractor, at the City's direction.
Any remedial work will be done in a manner acceptable to the
City. The Contractor shall pay the remediation and/or removal
and replacement costs. The Contractor must obtain written
authorization to perform extra or unauthorized work prior to
undertaking such work. The Contractor will not be compensated
for any unauthorized work. In addition, the City may order the
Contractor to remove, at the Contractor's expense, any extra or
unauthorized work.
(b) The Contractor must comply promptly with any order
made by the City under the provisions of this article. If the
Contractor fails to comply with the City's orders, the City may
in its discretion cause defective work to be corrected by its
own forces or by another contractor. The amount that the City
paid to correct the defective work will be deducted from any
monies due or to become due to the Contractor.
Section 40. Errors or Discrepancies Noted by the
Contractor
(a) If the Contractor, either before commencing work or in
the course of the work, finds any discrepancy between the plans,
specifications, and drawings or between any of them and the
physical conditions at the worksite, or finds any error or
omission in any of the plans, specifications, drawings or in any
survey, the Contractor shall promptly notify the City in writing
of such discrepancy, error, or omission. If the Contractor
observes that any plans, specifications, or drawings are at
variance with any applicable law, ordinance, regulation, order
or decree, Contractor shall promptly notify the City in writing
of such deviation or conflict.
(b) The City, upon receipt of such notice, shall promptly
investigate the circumstances and give appropriate instruction
to the Contractor. Until such instruction is given, any work
done by the Contractor, either directly or indirectly after its
discovery of such error, discrepancy, omission, deviation or
conflict, will be at the Contractor's own risk. The Contractor
shall bear all costs arising from any work that incorporates
such error, discrepancy, omission, deviation or conflict.
Section 41. Equipment
The Contractor shall furnish adequate equipment and
facilities to perform properly the work in a workmanlike manner
in accordance with the plans and specifications. Such equipment
and facilities must be in a good state of repair and maintained
in such state during the progress of the work and shall meet all
requirements of applicable ordinances and laws. No worn or
obsolete equipment shall be used, and in no case shall the
manufacturer's rating of capacity for any equipment be exceeded.
Article 5. MISCELLANEOUS
Section 42. Delay
(a) The Contractor acknowledges that the City desires the
project to be completed on or before the date specified in this
Contract.
(b) The Contractor shall within ten (10) days from the
beginning of any delay notify the City in writing of the cause
of delay; whereupon the City shall ascertain the facts and
extent of the delay and extend the time for completing the work
if in its sole judgment the findings of fact justify such an
extension. The City's findings of fact thereon shall be final
and conclusive on the parties hereto.
(c) The City shall have the right to extend the time for
completion if it determines such extension to be in the best
interest of the City.
Section 43. Guarantee
The Contractor does hereby warrant and guarantee all work
performed by it hereunder against defects in workmanship and/or
material for the period of one year after the date the City
Council has accepted the work, and the Contractor shall repair
and replace any and all such work, together with any other work
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which may be displaced in so doing, that may prove defective in
workmanship during such period, without expense whatsoever to
the City, ordinary wear and tear, abuse, or neglect excepted.
In the event of failure to comply with these requirements within
a week after being notified in writing, the City is hereby
authorized to proceed and have the defects repaired and made
good at the expense of the Contractor, who hereby agrees to pay
the costs and charges therefor immediately on demand.
Section 44. Builder's Risk
Unless otherwise provided, the City shall purchase and
maintain, in a company or companies lawfully authorized to do
business in the jurisdiction in which the project is located,
property insurance written on a builder's risk, "all-risk," or
equivalent policy form in the amount of the initial contract
sum, plus value of subsequent contract modifications and costs
of materials supplied or installed by others, comprising total
value for the project at the site on a replacement cost basis
without optional deductibles. Such property insurance shall be
maintained, unless otherwise provided in the Contract Documents,
otherwise agreed in writing by all persons and entities who are
beneficiaries of such insurance, until final payment has been
made or until no person or entity other than the City has an
insurable interest in the property required by this provision to
be covered, whichever is later. This insurance shall include
interests of the City, the Redevelopment Agency, the Contractor,
Subcontractor and Sub -subcontractors in the project.
Property insurance shall be on an "all-risk" or equivalent
policy form and shall include, without limitation, insurance
against the perils of fire (with extended coverage) and physical
loss or damage including, without duplication of coverage,
theft, vandalism, malicious mischief, collapse, windstorm,
falsework, testing and startup, temporary buildings and debris
removal including demolition occasioned by enforcement of any
applicable legal requirements, and shall cover reasonable
compensation for Contractor's services and expenses required as
a result of such insured loss.
If the property insurance requires deductibles, the City
shall pay costs not covered because of such deductibles. The
property insurance shall cover portions of the work stored off
the site, and also portions of the work in transit.
Except as otherwise provided herein, the City and
Contractor waive all rights against each other and any of their
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subcontractors, sub -subcontractors, agents, partners and
employee for damages caused by fire or other causes of loss to
the extent covered by property insurance applicable to the
project, except such rights as they have to proceeds of such
insurance held by the City as fiduciary. The policies shall
provide such waiver of subrogation by endorsement or otherwise.
A waiver of subrogation shall be effective as to a person or
entity even though that person or entity would otherwise have a
duty of indemnification, contractual or otherwise, did not pay
the insurance premium directly or indirectly, and whether or not
the person or entity had an insurable interest in the property
damaged. Notwithstanding the above, the City does not waive its
right to subrogate against the Contractor, any of its
subcontractors, sub -subcontractors, agents or employees, for
damages caused to non -project related property; real or personal
or both, at or adjacent to the site of the project, caused by
the negligent, intentional or other willful act or omission of
the Contractor, any of its subcontractors, sub -subcontractors,
agents, partners or employees.
Section 45. Termination
(a) Termination (Contractor's Default)
(1) It shall be considered a default if the Contractor
shall (a) declare bankruptcy, become insolvent, or assign his
assets for the benefit of his creditors; (b) disregard or
violate material provisions of the Contract Documents or City's
instructions, or fail to prosecute the work according to the
approved progress schedule; (c) fail to provide a qualified
superintendent, or representative, or competent workers,
subcontractors, or materials or equipment which meet the
requirements of the plans, specifications, and drawings. In
such event, the City will so notify the Contractor in writing.
Upon receipt of any such written notice of default, the
Contractor shall, at his expense, preserve at the project site
all construction materials, equipment, and plant, and shall
undertake immediate steps to remedy such default.
(2) If the Contractor fails to remedy such default within
ten (10) calendar days after receipt by it of such written
notice of default, the City, in writing and without notice to
the Contractor's sureties, at its option may terminate the right
to proceed hereunder with that work as to which default has
occurred or may terminate this Agreement. Upon receipt of any
such written notice, the Contractor shall at its expense and for
the work affected by any such termination:
-21-
(i) assist the City in making an inventory of all
materials and equipment in storage at the site,
enroute to the site, in storage or manufacture away
from the site, and/or on order from suppliers;
(ii) assign subcontracts, supply contracts, and equipment
rental agreements to the City all as designated by
the City; and
(iii) remove from the site all construction materials,
equipment, and plant listed in said inventory other
than such source testing materials, equipment, and
plant which are designated in writing by the City to
be used by the City in completing such work.
(3) The City shall have the right to complete the work to
which the termination applies by contract or otherwise, and the
Contractor agrees that the City shall have the right for such
purpose and for as long as necessary to take possession of and
to use any or all of the materials, plant, tools, equipment,
supplies and property of any and every kind owned and furnished
by the Contractor which is designated by the City in writing for
such purpose.
(4) The expense of so completing such work, together with
reasonable charges for administering any contract for such
completion, shall be charged to the Contractor, and such expense
shall be deducted by the City out of such monies as may be due
or may at any time thereafter become due to the Contractor. In
case such expense exceeds the sum which would have otherwise
been payable under the Agreement, then the Contractor and his
sureties shall be liable for and, upon written notice from the
City, shall promptly pay the amount of such excess to the City.
The City shall not be required to obtain the lowest figures for
completing such work, but may make such expenditures as in the
City's sole judgment best accomplish such completion.
If such cost is less than the balance which would have been
due, the Contractor shall have no claim to the difference except
to such extent as may be necessary in the opinion of the City,
to reimburse the Contractor or the Contractor's sureties for any
expense properly incurred for materials, tools, equipment,
property, and labor which were devoted to the prosecution of the
work and of which the City shall have received the benefit. In
computing such expense, as it relates to equipment and property,
the salvage value at completion of the work shall be deducted
-22-
from the depreciated value at the time the Contract was
terminated, and the difference shall be considered as an
expense.
(b) Breach of Contract by City
If the City fails to timely perform any or all of its
obligations under this Contract, the Contractor shall have the
right to pursue any one or more remedies available at law or
equity for such failure to perform.
Section 46. Standard Specifications
The "Standard Specifications for Public Works Construction"
(2000 edition), published by Building News, Inc. is hereby
incorporated by this reference and made a part hereof as though
fully set forth at length. In the event that said standard
specifications are inconsistent with the terms of this
Agreement, then this Agreement shall be deemed controlling.
Section 47. Contractor's Financial Responsibility
Contractor shall promptly pay, for City's account, all
valid bills and charges for material, labor or otherwise in
connection with or arising out of the construction of the
structure by Contractor, as set forth in this Agreement, subject
to the City's performance of its obligations under this
Agreement.
Should any liens or claims of liens or stop notices be
filed or recorded against the City and/or the Property, as a
result of a breach of the foregoing covenant, Contractor shall
within ten (10) days of written demand by the City or the
Property owner, either pay and discharge the same and cause the
same to be released of record, or shall furnish a surety bond in
an amount of least 125% of the contested lien or stop notice
lien. The bond shall be obtained from a surety that is
different that the surety issuing the performance and labor and
material bonds.
Section 48. Contractor's Qualifications
The Contractor must have a minimum of five (5) years
existence as an ongoing business enterprise in the field covered
in the proposal. If a Contractor has been in business for less
than five (5) years, comparable experience of Contractor's
owner(s) or responsible managing employee(s) may be substituted.
-23-
A joint venture or similar temporary organization, or a firm
established only for this project, would not be qualified.
The Contractor must not have ever failed to satisfactorily
complete a contract awarded to him, as a result of a breach and
default by the Contractor.
Section 49. Contractor's License Notice
The Contractor must possess a valid licensed in accordance
with the law under the provisions of Division III, Chapter 9, of
the Business and Professions Code of the State of California
during the entire project. Contractor is also required by law to
be licensed and regulated by the Contractor's State License
Board. Any questions concerning a contractor may be referred to
Register, Contractor's State License Board, 9835 Goethe Road,
Sacramento, California. Mailing address: P.O. Box 26000,
Sacramento, California 95826. The undersigned is licensed in
accordance with an Act providing for the Registration of
Contractors, License No. B-665299.
Section 50. Hazardous Materials
City recognizes that Contractor is a construction firm,
with no experience in detecting or remediating hazardous
materials (as such term is defined in any Federal, state and/or
local law, ordinance, regulation or interpretive case) and that
the Contractor is not the "operator" of the project or Property.
If after the commencement of the project, any hazardous
materials are discovered at the Property, Contractor shall be
entitled to immediately stop its work in the affected areas, and
Contractor shall report the condition to the City, and, if
required by applicable law, to any appropriate governmental
agency. Contractor shall not be obligated to perform any work
relating to or in any area containing hazardous materials
without further written agreement. All remediation measures
shall be the sole responsibility of the Property owner(s), and
shall be performed in a manner minimizing any adverse effect
upon the work of Contractor.
Section 51. Early Occupancy
If the City requests occupancy of the structure before
Contractor has completed its work, the City will indemnify,
defend and hold Contractor harmless from all disruption, delay,
or interference with the progress of Contractor work that may
occur as a result of such early occupancy, and will indemnify
-24-
Contractor and save it harmless from all claims, liability, loss
and expense, including attorney's fees, asserted or incurred as
a result of the activities of City or tenant or their agency,
contractors, employees or subcontractors or persons acting under
them including delay, interference, personal injury, bodily
injury, and property damage. The City shall not indemnify
Contractor for claims, loss or expense caused by the fault or
negligence of Contractor.
Section 52. Amendment
All changes or modifications to this Agreement shall be in
a writing stating that it is an amendment to this Agreement and
shall be signed by both parties or their duly authorized agents.
This Agreement shall not be modified through course of dealing,
usage or trade.
Section 53. Benefit of Agreement
This Agreement shall bind and benefit the parties hereto
and their heirs, successors, and permitted assigns.
Section 54. Waiver
Any waiver at any time by either party of its rights with
respect to a default under this Agreement, or with respect to
any other matters arising in connection with this Agreement,
shall not be deemed a waiver with respect to subsequent default
or other matter.
Section 55. Entire Agreement
This Agreement constitutes the complete and final
expression of the agreement of the parties and is intended as a
complete and exclusive statement of the terms of their
agreements and supersedes all prior and contemporaneous offers,
promises, representations, negotiations, discussions,
communications and agreements which may have been made in
connection with the subject matter hereof. All exhibits are
incorporated by reference. Contractor represents that in
entering into this Agreement, it has not relied on any previous
representations or understandings of any kind or nature.
-25-
IN WITNESS WHEREOF the parties hereto have executed this
Agreement or caused it to be executed as of the day, month and
year first above written.
ATTEST:
0
Bruce V. Malkenhorst, City Clerk
APPROVED AS TO FORM:
By 1.��, .a,.r, G�
EDUARDO OLIVO, City Attorney
CITY OF VERNON
�eonis C. Malb rg, Ma or
CONTRACTOR
Chalmers Corporation, dba CEG
Construct'
By
By
NOTE: The legal name of the Contractor shall be set forth above. If the Contractor is a
corporation, two signatures are required, as follows: (1) the chairman of the board, the
president, or any vice-president, and (2) the secretary, any assistant secretary, the chief
financial officer, or any assistant treasurer. If the bidder is a limited liability company,
signatures are required of two members or managers unless otherwise provided in the
company's articles of organization. If the bidder is a partnership, signatures are required
of the partner or partners authorized to sign contracts on behalf of the partnership.
-26-
Article 6. BOND FORMS AND INSURANCE REQUIREMENTS
Contractor shall furnish a Workers' Compensation
Certificate in substantially the form shown herein and shall
give both a Performance Bond and a Labor and Material Bond on
the forms enclosed herewith. A Sample Letter of Credit is also
enclosed as a guide for a Contractor's security.
Insurance coverage shall be provided in the types and
amounts shown on the Insurance Schedule. A copy of the policy
or a notarized letter from the insurance underwriter or carrier
verifying the coverage is required in order to demonstrate proof
of insurance.
Time is of the essence of this Agreement, and so the
insurance schedule must be promptly submitted to an authorized
insurance agent. Since an insurance endorsement providing
coverage for this Agreement is required, it is advisable to
provide a copy of this Agreement to the insurance agent.
-27-
WORKERS' COMPENSATION
CERTIFICATE
The undersigned acknowledges that Section 3700 of the
California Labor Code requires every employer to be insured
against liability for worker's compensation or to undertake
self-insurance in accordance with the provisions of that Labor
Code. The undersigned agrees to comply with such provisions
before commencing the performance of this Agreement.
CONTRACTOR
C->114GAr-1,55n J
10�����r
NOTE: The legal name of the Contractor shall be set forth above.
If the Contractor is a corporation, two signatures are required,
as follows: (1) the chairman of the board, the president, or any
vice-president, and (2) the secretary, any assistant secretary,
the chief financial officer, or any assistant treasurer. If the
bidder is a limited liability company, signatures are required
of two members or managers unless otherwise provided in the
company's articles of organization. If the bidder is a
partnership, signatures are required of the partner or partners
authorized to sign contracts on behalf of the partnership.
Workers' Compensation Certificate - 1
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS: That
WHEREAS, the City Council of the City of Vernon, a municipal
corporation, by action on the day of 2003,
has awarded to
hereinafter designated as the "Principal", the contract
for
in Los Angeles County, California; and
WHEREAS, said Principal is required under the terms of said
Contract to furnish a bond for the faithful performance of said
Contract;
NOW, THEREFORE, we, the Principal and
as Surety, are held firmly bound unto the CITY OF
VERNON hereinafter called the "Obligee," in the penal sum
of
DOLLARS($ ) lawful money of the United States of
America, for the payment of which sum well and truly to be made,
we bind ourselves, our heirs, executors, administrators and
successors, jointly and severally and firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if the above
bounden Principal, his heirs, executors, administrators,
successors or assigns shall in all things stand to and abide by,
and well and truly keep and perform the covenants, conditions, and
agreements in said Contract, and any alteration thereof made as
therein provided, on his part to be kept and performed at the time
and in the manner therein specified, and in all respects according
to their true intent and meaning, and shall indemnify and save
harmless the Obligee, its officers and agents, as therein
stipulated, this obligation shall become null and void; otherwise
it shall be and remain in full force and virtue. And the said
Surety, for value received, hereby stipulates and agrees that no
change, extension of time, alteration, or addition to the terms of
the Contract, or to the work to be performed thereunder, or the
specifications accompanying the same, shall in any way affect its
obligation on this bond, and it does thereby waive notice of any
such change, extension of time, alteration or addition to the
terms of the Contract, or to the work or to the specifications,
and said Surety agrees that in case suit is brought on this bond,
Surety will pay City's reasonable Attorney's fees to be fixed by
the court.
Performance Bond - 1
-29-
IN WITNESS WHEREOF, three (3) identical counterparts of this
instrument, each of which shall for all purposes be deemed an
original hereof, have been duly executed by the Principal and
Surety above named, on the day of 2003.
Name
(Principal)
(Attach Acknowledgment) By
Name
(Surety)
By
By
(Attorney -in -fact)
APPROVED AS TO FORM:
EDUARDO OLIVO, City Attorney
Performance Bond - 2
-30-
LABOR AND MATERIAL PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS: That
WHEREAS, the City Council
corporation, by action on the
awarded to
hereinafter designated as the "Principal," Contract
for
Los Angeles County, California; and
of the CITY OF VERNON, a municipal
day of 2003, has
in
WHEREAS said Principal is required to furnish a bond in
connection with said Contract providing that if said Principal or
any of his subcontractors shall fail to pay for any materials,
provisions, provender, or other supplies, or teams used in, upon,
for or about the performance of the work contracted to be done, or
for any work or labor done thereon of any kind, or for amounts due
under the Unemployment Insurance Act, the Surety on this bond will
pay the same to the extent hereinafter set forth.
NOW, THEREFORE, we, the Principal and_
as Surety, are held and firmly bound unto
the penal sum of
the CITY OF VERNON in
DOLLARS
($ ), lawful money of the United States of America, for
the payment of which sum well and truly to be made, we bind
ourselves, our heirs, executors, administrators, and successors,
jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if said
Principal, his subcontractors, heirs, executors, administrators,
successors, or assigns, shall fail to pay for any materials,
provisions, provender or other supplies or teams used in, upon,
for or about the performance of the work contracted to be done, or
for work or labor thereon of any kind, or fail to pay any of the
persons named in California Civil Code Section 3181, or amounts
due under the Unemployment Insurance Code with respect to work or
labor performed by any such claimant, or for any amounts required
to be deducted, withheld, and paid over to the Franchise Tax Board
from the wages of employees of the Contractor and his
subcontractors pursuant to Section 18663 of the Revenue and
Taxation Code with respect to such work and labor, and all other
applicable laws of the State of California and rules and
regulations of its agencies, then said Surety will pay the same in
or to an amount not exceeding the amount hereinabove set forth,
and also will pay, in case suit is brought upon this bond, such
reasonable attorneys' fees as shall be fixed by the court,
pursuant to Section 3181 of the California Civil Code.
Labor and Material Payment Bond - 1
-31-
This bond shall inure to the benefit of any of the persons
named in Section 3181 of the California Civil Code, so as to give
a right of action to them or their assigns in any suit brought
upon this bond, and the said Surety, for value received, hereby
stipulates and agrees that no change, extension of time,
alteration, or addition to the terms of the Contract, or the work
to be performed thereunder, or the specifications accompanying the
same, shall in any way affect its obligation on this bond, and it
does hereby waive notice of any such change, extension of time,
alteration, or addition to the terms of the Contract, or to the
work or to the specifications.
IN WITNESS WHEREOF, three (3) identical counterparts of this
instrument each of which shall for all purposes be deemed an
original thereof, have been duly executed by the Principal and
Surety above named on the day of
2003.
(Principal)
(Attach Acknowledgment)
(Surety)
APPROVED AS TO FORM:
Name
By
Name
By
EDUARDO OLIVO, City Attorney
(Attorney -in -fact)
Labor and Material Bond - 2
-32-
CONTRACTOR'S ACKNOWLEDGEMENT OF
INSURANCE REQUIREMENTS
The Contractor acknowledges that the Insurance Schedule
contained herein has been reviewed, that a copy thereof has been
submitted to an authorized insurance agent or broker, and that the
proofs of insurance required therein will be submitted to the
City.
The Contractor understands that it cannot commence work under
this Agreement until all proofs of insurance have been received
and approved as to form by the City Attorney.
The Contractor agrees that failure to submit the required
proofs of insurance shall constitute grounds at the City's
discretion for termination of the Agreement.
Date : I
Contractor
-33-
INSURANCE SCHEDULE (CONTRACTOR)
The Contractor shall provide proof of insurance, including a
standard certificate of insurance, in at least the following
amounts and coverage (combined single limit permitted):
I.
Coverage and
Limits
Bodily
Injury
Property Damage
Hazards
Each
Person
Each Accident
Each
Accident
Automobile Liability
Owned Automobiles
$
500,000
$1,000,000
$
500,000
Hired Automobiles
$
500,000
$1,000,000
$
500,000
Non -Owned Automobiles
$
500,000
$1,000,000
$
500,000
Workers' Compensation
$
Statutory
Employers' Liability
$1,000,000 per employer
II. General Liability
Premises Operations
$1,000,000
$5,000,000
$1,000,000
Elevators
(if applicable)
$1,000,000
$5,000,000
$1,000,000
Independent
Contractors
$1,000,000
$5,000,000
$1,000,000
Products - Completed
Operations
$1,000,000
$5,000,000
$1,000,000
Contract Liability
$1,000,000
$5,000,000
$1,000,000
Umbrella Liability
$1,000,000
$1,000,000
$1,000,000
a. The general liability policy shall contain the following
special endorsements that shall be noted on or attached to the
standard certificate of insurance:
1. An endorsement naming the City of Vernon, its officers,
and employees as insureds under the policy.
2. An endorsement providing the City of Vernon thirty (30)
days notice of cancellation or material reduction of
coverage.
3. An endorsement providing coverage for all operations
under the City of Vernon Contract for this project.
4. Such other endorsement as may be required by addendum
hereto.
b. In addition to the standard certificate of insurance, proof of
general and umbrella liability coverage shall be furnished in
the form checked below.
X For each policy, a notarized letter from the underwriter
or carrier certifying that the coverage and statements
in the standard certificate of insurance (attached
thereto) are true and correct and that the signator is
an officer authorized to so certify.
A copy of each policy certified by an officer of the
underwriter or carrier and notarized.
-34-
PROOF OF INSURANCE APPROVAL AS TO FORM
The proofs of the following insurance coverage have been
received and approved as to form:
(1) Broad Form Contractual Liability.
(2) Automobile Liability.
(3) Worker's Compensation.
(4) Employer's Liability.
(5) General Liability.
(6) Umbrella Liability.
Dated:
EDUARDO OLIVO
City Attorney
-35-
INSURANCE FORM LETTER
(To be issued on insurance carrier letterhead)
Date: S
A
City Clerk M
City of Vernon P
4305 Santa Fe Avenue L
Vernon, CA 90058 E
Re: Insurance for City of
Vernon
(description of permit or Contract)
Policy
Number(s)
Named
Insured:
City Clerk:
I hereby certify that the certificate of insurance attached
hereto and made a part hereof by reference truly and accurately
represents the above cited insurance policies and the insurance
coverage of each for the named insured issued by
(insurance
carrier).
The City of Vernon, its officers, and employees are
included in said policies as additional insureds and the City of
Vernon will be provided with thirty (30) days written notice of
cancellation or material reduction of coverage.
I certify that I am an officer of the insurance carrier
named herein and that I am authorized to sign this certificate
on behalf of said insurance carrier.
Signature
(Notary)
Title
36
(BANK OR SAVINGS AND LOAN ASSOCIATION LETTERHEAD)
Date: S
A
M
City of Vernon P
4305 Santa Fe Avenue L
Vernon, CA 90058 E
IRREVOCABLE LETTER OF CREDIT
Contract
Gentlemen:
Please consider this letter as an Irrevocable Letter of Credit pledging that
in the amount of $ is/are deposited and guaranteed to insure the
Contractor's faithful performance under an Agreement with the City of Vernon for the
construction of a 40,000 square foot tilt up building in lieu of withholding any funds due
the Contractor under progress payments. In compliance with Part 5 (commencing with
Section 22300) of Division 2 of the California Public Contract Code, we agree that the
funds or other securities designated by this instrument shall become trust funds for the
purposes set forth in this instrument. This instrument shall terminate upon formal
acceptance by the City Council of the City of Vernon of the work performed by the
Contractor under said Agreement.
Any claims under this Irrevocable Letter of Credit shall be presented in the
following manner:
The City's written statement, signed by the Director of Community Services,
certifying that there has been loss, damage or liability resulting from the
Contractor's duties and obligations under the Agreement, or from negligence,
act or omission of the Contractor, its agents, servants and employees (such
statement to be substantiated by an attached detailed report) in the amount of
the accompanying sight draft on us and that the amount of this draft is
therefore now due and payable.
The above statement will be all that is required to certify the amount set forth under this
Irrevocable Letter of Credit, dated this date, is due and payable to the City of Vernon
pursuant to the above -stated Agreement for
(Name of Bank or Savings and Loan Association)
By
President
By
Secretary
ALL SIGNATURES MUST BE NOTARIZED
Attach proper jurats
Securities as listed in Section 16430 of the Government Code, or bank or
savings and loan certificates of deposit.
37
C.E.G CONSTRUCTION
PICO RIVERA, CALIFORNIA
Exhibit "A"
PROJECT: Two Story Office Building
ADDRESS: 3375 Slauson Avenue
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
CITY: Vernon, CA
December 5, 2002
Estimated By
Jeff Shanholtzer
ESTIMATED
SPEC.
BUDGET
NO.
SUB -TRADE
AMOUNT
1-005
PROJECT GENERAL REQUIREMENTS
108,205
2-015
GRADE STAKING
3,883
2-070
SELECTIVE DEMOLITION
3,750
2-200
EARTHWORK
56,326
2-270
EROSION CONTROL
1,490
2-510
ASPHALT PAVING
64,729
2-570
SITE CONCRETE
75,779
2-580
PAVEMENT MARKING & BUMPERS
1,176
2-730
SEWER CONNECTION
7,500
2-840
WROUGHT IRON FENCE & GATES
35,000
2-865
SITE FURNISHING/BIKE RACK
700
2-910
LANDSCAPE and IRRIGATION
39,266
3-210
REINFORCING STEEL
100,900
3-310
2-1/2 and 4-1/2 ' CONCRETE DECKING
40,000
3-460
TILT -UP - GENERAL
184,200
5-120
STRUCTURAUMISCELANEOUS STEEL
113,090
6-115
SECOND FLOOR FRAMING
192,600
6-170
PANELIZED ROOF STRUCTURE
79,000
7-200
INSULATION & R-19 UNDER ROOF INSULATION
61,390
6-220
MILLWORK
11,833
7-510
BUILT-UP ROOFING
19,400
7-620
SHEET METAL FLASHING & TRIM
5,970
7-920
SEALANTS and CAULKING
3,250
8-210
WOOD DOORS & FRAMES
30,467
8-360
ROLLUP DOORS
4,200
8-810
GLASS & STOREFRONT
49,840
9-250
DRYWALL
122,496
9-310
CERAMIC WALL & FLOOR TILE (RESTROOMS ONLY)
36,432
9-510
ACOUSTICAL CEILING
51,415
9-900
PAINTING INTERIOR & EXTERIOR
24,096
10-800
TOILET & BATH ACCESSORIES
5,900
11-161
DOCK BUMPERS
1,220
14-240
HYDRAULIC ELEVATORS 2500 LBS / 5000 LBS
113,250
15-300
FIRE PROTECTION
75,757
15-400
PLUMBING
59,550
15-500
HVAC
225,000
16-100
ELECTRICAL
182107
20-030
SURVEY
2,800
20-060
GEOLOGICAL SOIL REPORT
3,800
21-010
PROCESSING AND COORDINATION
3,000
21-020
ARCHITECTURAL DESIGN
47,000
21-025
CIVIL ENGINEERING
8,500
21-030
STRUCTURAL ENGINEERING
15,500
21-040
MECHANICAL ENGINEERING
16,300
21-045
ELECTRICAL ENGINEERING
13,750
21-050
LANDSCAPE ARCHITECTURE
2,850
22-010
PROJECT SUPERVISION
162,308
SUBTOTAL
2,466,975
INSURANCE 14,797
MARK-UP/ FEE: 223,359
TOTAL BASE BID AMOUNT 2,705,131
Exhibit `B"
C.E.G. Construction
Proposal Qualifications
For Building Shell & T.I.
Project: 3375 Slauson Avenue Vernon, CA
December 5, 2002
This is based on site plan, A-1, A-2, A2.1and A-3 dated 12/05/02 provided By O.C. Engineering and
revised as per City of Vernon comments
Grade Staking:
Approximately 77,666 SF, Coordinate control plan, rough grade stakes and saw cut lines included but not
limited to, building pad and parking blue tops, building pad certification, building corner stakes, curb and
gutter stakes, sewer line stakes, electrical transformer stakes, trash enclosure stakes, wall stakes, and final
grade certification.
Selective Demo:
Saw cut break and remove Approximately 1,250 SF city sidewalk for new driveway approach.
Earthwork:
Construct Approximately 20,000 SF building pad, perform all earthwork, and grading together with
miscellaneous removals, clear & grub site, mass overexcavation (site & bldg. pad) cuts & fills, prepare
project by importing/exporting materials to achieve proper grade elevations, materials to be compacted to
optimum density, rough grade site and building pad to +/- 1/10 th ft., cut and grade for parking lot, planters,
curbs and gutters, backfill exterior building walls.
Erosion Control:
Furnish and place erosion control poly birdseye sandbags (2) high at required locations and gravel
driveway entrance per erosion control plan.
Asphalt Paving Work:
Approximately 39,230 SF of asphalt paving, includes applying weed killer, fine grade site area to receive
3" asphalt concrete paving over 4" of class II base, roll to compact, and 1' slot patch of asphalt at new drive
approach.
Site Concrete:
Offsite: One new driveway approach Approximately 400 SF.
Offsite: Approximately 850 SF new city sidewalk, curb, gutter.
Approximately 360 SF 6" trash enclosure slab.
Approximately 1,600 LF 6" type A planter curb approx.
Approximately 4,184 SF 4" path of travel around building with enhanced front entrance and rear patio slab
Lobby area, saw cut 4' diagonal square pattern and apply concrete stain finishing, color and pattern to be
specified in final drawings, all other areas to be sealed.
Concrete truck well.
Concrete truck dock.
Bases for exterior light standards.
Pavement Markings and Bumpers:
A.C. Paving, furnish and install all parking bumpers, parking stall striping, fire lane markings, marked
handicapped stalls (striping, markings, signs, paths of travel signs).
Sewer Connection:
Connecting sewer lateral in the street
Wrought Iron Fence & Gates:
Approximately 736 if X 8' of wrought iron fence. Two (2) wrought iron sliding gates at the main entry on
Slauson. Wrought iron fencing starts at the northwest corner of the property and runs south to Slauson
Avenue and from the southwest corner to the southeast corner (along Slauson Ave) and north along the east
property line from building to northeast corner.
Site Furnishing/Bike Rack:
One (10) stall bike rack.
Landscape and Irrigation:
Approximately 14,000 SF of miscellaneous foliage, trees, shrubs, grass and required irrigation.
Reinforcing Steel:
Furnish, fabricate and tie all deformed/bent-reinforcing bars included but not limited to foundations, slab
on grade, tilt -up walls, and trash enclosure.
Concrete Decking:
Approximately 20,000 SF of poured in place 20 gauge corrugated metal deck filled with concrete. Depth
varying from 2 Y2" and 4 V2". The second floor will be designed for light manufacturing with a 75 psf live
load.
Tilt -Up:
Approximately 20,000 SF building shell included but not limited to, forming, place and finish of concrete
for foundations, slab, walls, and erection of walls.
Structural/Miscellaneous Steel:
Includes, but is not limited to, all required columns and beams for roof framing, mezzanine framing, curtain
wall framing, trash gates, shop coat primer, templates, and anchor bolts, ledger angles and splice plates,
doorjamb guards, embeds, angle cord ties, wall railings, guard railing, structural steel canopy and interior
roll -up door columns, rain gutters, steel stairs, hand railings, pipe bollards, sheet metal decking for
mezzanine, hardware and field welding related to this scope of work.
Second Floor Framing:
Approximately 20,000 SF includes a steel truss flooring system, framed openings, blocking, catalog
hardware, steel -to -steel connections and furnish embedded catalog hardware, ties and related welding.
Panelized Roofing:
Approximately 20,000 SF panelized roofing, includes a steel truss roof system, framed air conditioning
openings, roof hatch opening, roof blocking, plywood sheathing, catalog hardware, steel to steel
connections and furnish embedded catalog hardware, ties and related welding.
Insulation:
First floor: Unfaced Batt. Insulation — exterior walls.
Second floor: Unfaced Batt. Insulation — exterior walls.
Below Roof Unfaced Batt. Insulation R-19.
To comply with Title 24 Energy Regulations.
Built-up Roofing:
Approximately 20,000 SF 4 ply Class A built-up roofing system and sbs modified flashing, mastic all
flashing and protrusions.
Sheet Metal Flashing & Trim:
Approximately 400 LF Sheet metal flashing & trim.
Roof Access Hatch 30" x 3'-0.
Over flow scuppers.
Sealant & Caulking:
All Non rated and fire rated concrete panel expansion joints and all other rated penetrations
Wood Door and Frame:
(29) Doors and frames ground floor.
(18) Doors and frames second floor.
Roll -Up Door:
(1) 24 Gauge heavy duty 8 ' x 12' roll -up door.
(3) 24 Gauge heavy duty 8' x 12' roll -up doors in warehouse.
Glass & Storefront:
Clear anodized finished aluminum storefront windows, curtain wall assembly at main entrance, panel
railing at mezzanine, doors and sidelights,'/a" tempered glass, (color to be selected by owner), gaskets,
hardware, weather-stripping, MS lock with cylinder, cylinder guard and lock indicator, threshold, and door
pulls, overhead concealed closures.
Drywall & Metal Studs:
Includes metal stud framing, gypsum wallboard, taping, sanding, and finish.
First floor:
Furred walls at perimeters. Approximately 591 LF
Interior walls. Approximately 1,339 LF
Ceiling lids at fire corridor and restrooms. Approximately 4,080 SF
Second floor:
Furred walls at perimeters. Approximately 591 LF
Interior walls. Approximately 1,019 LF
Ceiling lids at fire corridor and restrooms. Approximately 3,564 SF
Millwork/Cabinets:
First floor: reception area furnish and install 20' LF of prefabricated plastic laminated desk top with upper
granite counter top and wood vainer front paneling, including two (2) base cabinets.
First floor: Furnish and install 22' LF of prefabricated plastic laminated lower cabinets with counter top
and two (2) 6' LF of prefabricated plastic laminated upper cabinets.
Second floor: Furnish and install 12' LF of prefabricated plastic laminated lower cabinets with counter top
and 4' LF of prefabricated plastic laminated upper cabinets.
Ceramic Wall & Floor Tile:
Ceramic floor & wall tiling at (4) restrooms 44" above finish floor.
Acoustical Ceiling Tile:
Install white 2X4 Donn tee -bar and non -directional fissured lay -in ceiling tiles mezzanine and first floor
areas as per floor plan along with installing seismic wiring using 3/a" conduit compression posts. The T-bar,
as specified in the scope of work, is proposed throughout all the office areas to be within the future
partitions.
Flooring:
Lobby area, saw cut 4' diagonal square pattern and apply concrete stain finishing, color and pattern to be
specified in final drawings, all other areas to be sealed.
Painting:
Prepare, prime and finish paint all exterior concrete walls, all interior drywall, office/mezzanine drywall
build out, and doors, handrailings, trash enclosure and gates, pipe bollards, exterior side of rollup door, all
paint is to be ICI.
Toilet & Bathroom Access:
Four restrooms with toilet and lavatory accessories and partitions
Dock Bumpers:
Heavy duty laminated rubber dock bumpers at all truck positions.
Hydraulic Elevators:
One (1) service car, electric hydraulic control, 5000 pound capacity and one (1) passenger car, electric
hydraulic control, 2,500 pound capacity, 100 feet per minute, two (2) stops, two (2) openings in line, # 4
stainless steel entrance doors and frames, D.C. powered with "infrared" multi -beam LAMBDA Non -
contact door reversal device, car enclosure steel framed shell with wood canopy, vertical plastic laminated
raised panels at rear and side walls, # 4 stainless steel car front return, car door and rear handrails,
aluminum eggcrate suspended ceiling, aluminum car sill, single speed exhaust fan, emergency car lighting,
braille markings, telephone cabinet and wiring, certificate frame, one (1) "advanced" car operating panel,
Digital car position indicator, in -car direction lantern, car arrival gong, special features included
independent service, sill support angles, earthquake restraints/seismic design per code, fireman's service as
required by code, U/L wiring, UAL labeled entrances, pad hooks, ADA approved telephone, solid state soft
start.
Fire Sprinkle System:
40,000 SF of .33/2000 first floor and second floor, includes engineered drawings for automatic fire
sprinkler system, underground fire service main including excavation and properly backfilled, compacted
to optimum density, control valve riser assemblies complete with flow switch, drain valve and gauge
assembly, sprinkler heads, orifice, backflow prevention device, post indicator valves, fire department
connection, detector check valve, seismic bracing, PVC inspectors test drain discharge line to face of curb,
(2) on -site fire hydrant and sprinkler system at loading dock & T.I. drops .
Plumbing:
Approximately 3001f of Sewer underground. Add two 4" sewer sub outs located on the ground floor
branching out to two main offices areas.
Approximately 3001f of Domestic water underground.
Roof Drains.
Vent pipes.
Floor drains.
Sump pump at loading dock.
Fixture and (2) Water Heater.
Floor clean out, pressure regulator & backflow device.
Condensation line for A/C.
(2) Drinking fountains.
With the tenant improvements, the revised estimate includes complete plumbing.
H.V.A.C:
Furnish and install 100 tons of air conditioning and heating; per specification of Kamal' s Iskander &
Associates Inc. including but not limited to fresh air hoods and filter racks, roof mounted exhaust fans,
smoke detectors, supply duct mounted ceiling mounted exhaust fans, 7—day programmable thermostats,
plenums fittings and boxes, ducting, supply registers, return grilles, balance dampers, unit start ups and in-
house air balance.
Electrical:
Provide all required Electrical, including: Primary & secondary service, from existing power pole to Main
service — 1200 amp, 277/480 volt, or similar for new building, elevator hook-up, gear package, grounding,
slab box, all conduit, wire, panels, and transformers, exit signs, area switches. Provide all required
electrical, including: 375 prismatic lighting fixtures and 180 — 15 amp convenience receptacle circuits, 18
decorative lobby / office lighting fixtures, 65 corridor and stair well lighting fixtures, 24 restroom and core
office lighting fixtures, 30 emergency lighting fixtures, 190 wall communication J box stub ups for
computer/voice & data, provide all required line voltage and disconnect for HVAC equipment. Exterior
light poles and exterior building lights, hook-up for sump pump, dock lighting and (1) keyless access
system at front entrance.
General Requirements:
Contractor to provide all work as detailed in the attached EXHIBIT "A" for the set fee as listed.
Exclusions:
Standard exclusions:
a. Design and installation of fire monitoring or burglar alarm systems.
b. Hazardous material abatement.
c. Building plan check or permits.
e. County & City fees, assessments, permits, testing & inspections, fire service lateral to public
right of way and water meter.
f. Allowances for scope changes beyond the present definition such as special equipment not
listed or changes in materials, quantities or quality.
g. Removal of underground obstructions such as rocks, unknowing foundations, tanks, utilities,
etc.
h. Liquidated damages
i. Fire insurance and builder's all risk insurance (including earthquake and flood).
j. Cost to provide general contractor's performance and payment bonds. (General Contractor is
bondable).
k. Local fees and assessments as might be imposed such as sewerage facilities charges, city
occupational tax, fees to fund fire hydrants and water improvements.
1. Relocation of public utilities such as (Telephonetelectrical poles, water meters, traffic signals,
valves, fire hydrants) in the public right of way.
m. Offsite improvement other than what is mentioned above.
2. Specified exclusions:
a. Build out of individual future offices.
b. Carpet and Vinyl Tile (Excluding Restroom Area).
c. Electrical Distribution for specified tenant requirements.
d. Refrigerator and Appliances.
e. Data, Computer and Telephone Wiring.
f. National Pollution Discharge Elimination System Standard Urban Stormwater Mitigation
Plan Requirements.
PREPARED BY:
Jeff Shanholtzer, Estimator/C.E.G.Construction
Phone: (562) 948-4850 — ext 215 FAX: (562) 948-4456