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Home My WebLink AboutC38790 Alessandro Alley Imprvmnts 817-16CONTRACT NO. C38790 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: April 16, 2020 PREPARED BY: Ryan Gayler, Project Administrator REQUEST: Award Contract No. C38790 in the amount of $1,445,020.00 to Leonida Builders, Inc. of Santa Clarita, California for the Alessandro Alley Improvements — Phase I (Project No. 817-16). Recommendation By Minute Motion: 1. Award Contract No. C38790, in the amount of $1,445,020 to Leonida Builders, Inc. of Santa Clarita, California, for the construction of the Alessandro Alley Improvements — Phase I (Project No. 817-16); 2. Authorize the Director of Finance to set aside a 10% contingency in the amount of $144,502; 3. Appropriate $410,000 from the Committed Capital Improvement Project Reserve to the project account; 4. Authorize the City Manager or designee to review and approve written requests for the use of contingency change orders for unanticipated conditions, per Section 3,30.170 of the Palm Desert Municipal Code; and 5. Authorize the Mayor to execute the Agreement and any documents necessary to effectuate the actions taken herein. Funds are available in Account No. 4514341-4400100, Capital Bond Funds for the Alessandro Alley Improvements, and the Committed CIP Reserve Fund if the actions above are approved. Strategic Plan The proposed action will further the goals of the Strategic Plan by providing a safe, efficient, and reliable transportation system for residents and visitors. It will also meet the Economic Development goals of the Strategic Plan by revitalizing the Highway 111 corridor. Background Analysis The rehabilitation of the Alessandro Alley has been a goal of the City for many years. The project as originally envisioned would stretch from the east side of the Walgreens property on Monterey Avenue to Las Palmas Avenue. The project was split into two phases because a development opportunity emerged with several of the City -owned lots on the west end of the project. Therefore, the limits of Phase I of the Alessandro Alley Improvements will extend from Las Palmas Avenue to a point approximately 220' east of San Marcos Avenue. April 16, 2020 - Staff Report Award Contract No. C38790 to Leonida Builders, Inc. for the Alessandro Alley Project Page 2 of 3 The project will reconstruct the asphalt pavement, provide drainage improvements, create 50 new parking spaces on the north side of the alley, and relocate the parking area for the apartments adjacent to the housing units. In addition, fagade enhancements will be constructed at the apartment complex to improve the appearance. Block walls and landscaping improvements will be constructed to create separation between the alley and the residential properties to the north. A goal of the improvements is to bring the transportation facilities up to the City's standards and to encourage improvements or redevelopment of the commercial properties along the alley. The proposed improvements are intended to compliment the San Pablo Avenue corridor improvements (currently under construction) by transforming the roadway into a new point of access for the businesses. The Project was properly advertised for bid, and on December 20, 2019, sealed bids were received and opened by the Office of the City Clerk with the following results: j Contractor Leonida Builders, Inc. Granite Construction Company Location Santa Clarita, CA Indio, CA Bid Amount $1,429,520.00 $2,061,602.00 Upon reviewing the bid submitted by the apparent low bidder, an irregularity was found. A mathematical error was made by the contractor in the calculation of the total base bid amount causing the bid to be understated by $15,500. When all the line items are properly added. the actual base bid total is $1,445,020. The City Attorney has indicated that the irregularity may be waived by the City Council. Per an agreement (Contract No. C31910) the City has with the Coachella Valley Water District (CVWD), all paving projects include an alternate bid item to raise the valves and manholes to the new grade on behalf of CVWD. CVWD has opted to perform the work with their own contractor. Therefore, the bid alternate will not be included in the contract amount. Presenting this construction contract to the City Council for award has been delayed to allow the City staff to complete right-of-way acquisition for the Project. The acquisition is in its final stage and will be completed prior to construction on the subject parcel. While the City staff have been completing the acquisition of the final right-of-way for the Project, the COVID-19 health emergency is resulting in substantial disruption of normal business activities, which has caused the City staff to reassess the viability of planned projects. Following review of the project and in consideration of its fiscal viability, Staff is recommending that the project be advanced to construction based on agreements the City entered into when the project was initiated. The City has entered into agreements with property owners along the north side of the alley where, in exchange for right-of-way, the City agreed to make certain improvements to the functionality and appearance of the area. These improvements are primarily in the form of the block walls, the relocation of the parking area for the apartment complex, and landscape improvements.- The agreements represent an obligation for the City to make these improvements. April 16, 2020 - Staff Report Award Contract No. C38790 to Leonida Builders, Inc. for the Alessandro Alley Project Page 3 of 3 This project has been hampered by many delays over the years, most recently when the project had to be updated to come into compliance with the latest building code revisions. If this project is not awarded soon, the plans may need to be updated once again at considerable cost to the City. Lastly, the alley is in poor condition and without the project a pavement maintenance project will need to be created to make the alleyway passable for vehicles and pedestrians. The project is budgeted to use bond funds dedicated for improvements within the right-of- way. The bond funds are restricted from being used to make improvements outside the right- of-way, which includes the improvements required by the agreements previously mentioned. An appropriation from the Committed Capital Improvement Project Reserve in the amount of $410,000 is required to fund that portion of the work that is ineligible for bond funding, specifically the improvements that will be made to the fagade of the apartment complex. the relocation of the parking lot, and any other improvements made outside the right-of-way. The appropriation of $410,000 will cover the work to be done outside the right-of-way, as well as the cost of materials testing and special inspection in those areas. City staff will be procuring a material testing and special inspection contract for the project prior to commencement of construction. The professional services contract will cover the project work to be conducted within the public right-of-way and on private property. The Materials Testing contract is anticipated to be less than $50,000 in value, therefore the City Manager is empowered by Palm Desert Municipal Code to award the contract. A portion of the appropriation is needed for inspections on private property, with the balance of materials testing and special inspection work within the public right-of-way funded with bond funds. Fiscal Analvsis A total of $1.535 million of Capital Bond Funds is currently available for this phase of the project. Due to bond fund restrictions, $410,000 from the Committed Capital Improvement Project Reserve is required for work outside the right -a -way. In addition, the installation of storm drain improvements and landscaping will result in a negligible increase in annual maintenance expenditures. LEGAL REVIEW �DEPT. REVIEW FINANCIAL ASSISTANT i REVIEW CITY MANAGER �.IYI ag Robert W. Hargreaves Tom Garcia, P.E. City Attorney Director of Public Works i City Manager, Lauri Aylaian Janet M. Moore Andy Firestine Director of Finance Assistant City Manager CONTRACTOR. Leonida Builders, Inc. 15821 Live Oak Springs Canyon Road Santa Clarita, CA 91387 ATTACHMENTS: 1) Contractor's Bid; 2) Agreement and Bonds; 3) Vicinity Map C — CONTRACTOR'S BID ALESSANDRO ALLEY IMPROVEMENTS — PHASE I PROJECT NO. 817-16 CONTRACT NO. C38790 TO: CITY OF PALM DESERT, "CITY" DATE: December 19, 2019 BIDDER: Leonida Builders, Inc. "CONTRACTOR" The UNDERSIGNED, "CONTRACTOR", having carefully examined the site and the Contract Documents for the construction of, ALESSANDRO ALLEY IMPROVEMENTS — PHASE I, PROJECT NO. 817-16, CONTRACT NO. C38790, hereby proposes to construct the work in accordance with the Contract Documents, including Addenda No(s). 1,2 for the amount stated in this Bid. By submitting this Bid, the Contractor agrees with the City: That unless withdrawn in person by CONTRACTOR or some person authorized in writing by CONTRACTOR before the time specified in the Notice Inviting Bids for the public opening of bids, this Bid constitutes an irrevocable offer for 60 calendar days after that date. 2 The CITY has the right to reject any or all Bids and to waive any irregularities or informalities contained in a Bid. 3. That the contract shall be awarded only by the governing body of CITY. Said contract shall only be deemed awarded after the CONTRACTOR'S complete submission of all contract documents, bonds, insurance documentation, and the CITY shall obtain all necessary signatures of the governing body, at which time the contract shall be deemed awarded. 4. To submit to CITY such information as CITY may require to determine the Bidder's financial standing experience and to perform the work. 5. That the accompanying cash, certified or cashier's check or Bid Bond constitutes a guarantee that if awarded the contract, CONTRACTOR will execute the Agreement and deliver the required bonds and certificates of insurance within 10 days after notice of award. If CONTRACTOR fails to execute and deliver said documents, the cash, check or B i d B o n d is to be charged with the costs of the resultant damages to CITY, including but not limited to publication costs, the difference in money between the amount bid and the amount in excess of the bid which costs CITY to do or cause to be done the work involved, lease and rental costs, additional salaries and overhead, increased interest and costs of funding the project, attorney expense, additional engineering and architectural expense C-1 and cost of maintaining or construction alternate facilities occasioned by the failure to execute and deliver said documents. 6. It is understood that the quantities shown hereon, except for those quantities marked "Lump Sum", are estimates and the final payment will be based upon the actual work performed, subject to such adjustment and alterations as elsewhere provided herein. BASE BID ITEMS ITEM '. UNIT NO: , ITj=MD�SCRIPTION 4UNITS QUANTITY COST TOTAL Mobilization LS 1 $ $ I1 160,000.00 60,000.00 Traffic Control LS 1 $ I ri 5,000.00 15,000.00 {3 Dust Control LS 1 $ $ 10,000.00 10,000.00 �1 SWPPP LS 1 $ $ 15,000.00 15,000.00 I5 Clearing and Grubbing BLS 1 $ $ 55,000.00 55,000.00 Remove Concrete Improvements LS 1 $ $ 20,000.00 20,000.00 �1 Remove Above Ground Structures LS 1 $ $ 60,000.00 60,000.00 8 Remove Road Surface and Base F 34,500 $ $ r 1.98 68,310.00 g Remove Tree EA 2 $ $ 2,500.00 5,000.00 10 Construct Retention Basin LS 1 $ $ 12,000.00 12,000.00 11 Install Storm Drain System LS 1 $ $ 90,000.00 90,000.00 12 Street and Parking Lot Grading SF 34,500 I$ $ f 0.75 25,875.00 13 Construct 8' High CMU Block Wall LF 110 �$ $ Sta. +/-27+20.00 to +/-28+35.00 Item 31 on the Civil Plans 11,045.00 114,950.00 14 Construct 8' High Retaining Wall ILF 550 $ $ Sta. 19+81.93 to 26+27.67 Item 13 on the Civil Plans I 305.00 167,750.00 15 Construct 6' High Screen Wall LF 250 is $ Sta. 1+36.71 to 2+61.56 '220.00 55,000.00 Item 12 on the Civil Plans C-2 16 Install 4" PVC Sleeve LF 170 $ 60.00 10,200.00 17 Install Light Pole and Luminaire EA 9 $ �o, oo $ 40/000.00 18 Construct 6" CF Concrete Curb and LF 225 $ $ Gutter per Palm Desert Standard 102, modified per plans 41.00 9,225.00 +19 Construct 6" CF Concrete Curb per LF 1,150 $ $ Palm Desert Standard 103 24.00 27,600.00 1 0 Construct 0" CF Concrete Curb LF 150 $ $ 24.00 3,600.00 j21 Construct Concrete Valley Gutter per LF 800 $ Palm Desert Standard 112 32.00 r25,600.00 22 Construct Concrete Cross Gutter per SF 525 $ $ Palm Desert Standard 108, modified per plans 45.00 23,625.00 �23 Construct Concrete Sidewalk per Palm SF 825 $ $ l Desert Standard 104 8.00 , 6,600.00 �24 Construct Concrete Ramp and Stairs LS 1 $ with Hand Rails 12,000.00 r12,000.00 �5 Construct ADA Compliant Curb Ramp ;EA 2 $ 6,500.00 r13,000.00 j26 Construct Trash Enclosure per Palm EA 2 I$ �$ Desert Ord. 1161 1 15,000.00 30,000.00 �7 Construct 7" Aggregate Base NSF 34,500 $ S 1.50 51,750.00 �28 Construct 4.5" Warm Mix AC SF 34,500 $ $ 3.50 120,750.00 29 Construct Carport Canopy Structure LS 1 $ $ 25,000.00 25,000.00 30 Construct Building Improvements at BLS 1 $ $ the Apartment Complex 15,000.00 15,000.00 �1 Utility Coordination and Relocation LS 1 $ $ i 25,000.00 25,000.00 '32 Install Metal Pedestrian Gate JEA 2 $ $ 5,500.00 11,000.00 i 33 Install 16' Wide Double Swing Gate EA 2 $ $ 11,000.00 22,000.00 34 Signing and Striping LS 1 $ $ 20,000.00 20,000.00 �35 Install Landscape Irrigation and BLS 1 $ $ Electrical System I 45,000.00 45,000.00 �6 Landscape Grading iLS 1 $ $ 1 20,000.00 20,000.00 �37 Acacia Willardiana — 15 Gal. / 24" box A 11 $ $ 50.00 ,550.00 i C-3 8 r$ Tipuana Tipu — 24" box rA 9 450.00 $ 63 41,ofe-e 39 Caesalpinia Mexicana — 5 Gal. �EA 13 $ $ 780.00 U_on 40 Dalea Capitata Sierra Gold — 5 Gal. 1EA 17 $ $ 1,700.00 J 100.00 1 Furcraea Macdougalii —15 Gal. {EA 3 $ $ I 100.00 300.00 {42 Hesperaloe Parviflor — 5 Gal, IEA 9 $ $ II J 120.00 1,080.00 �43 Hesperaloe Pink Parade — 5 Gal. EA 34 $ $ 80.00 2,720.00 Justicla Californica — 5 Gal, EA 19 $ $ 80.00 1,520.00 {45 Nolina Nelsoni — 24" box �EA 1 $ 800.00 $ 800.00 II46 Opuntia Basilarls — 10 pad min. EA 23 100.00 $ 2,300.00 �7 Calliandra Inaequilatera — 5 Gal. EA 5 $ 120.00 $ 600.00 j48 Macfadyena Unguls-Cats — 5 Gal. EA 3 $ 120.00 $ 360.00 49 Hickory Creek Cobble — 3"- 6" SF 1,550 $' 6.00 $ 9,300.00 50 Decomposed Granite — 3/8" minus SF 5,250 $ 4.50 $ 23,62bM 51 Desert Select Boulders — 2' — 6' 42 $ $ IEA 250.00 10,500.00 52 90-day Maintenance and Plant �LS 1 $ 4,000.00$ 4,000.00 Establishment TOTAL BASE BID PRICE $ t L-1 BID ALTERNATE #1 — CVWD STRUCTURE ADJUSTMENTS . INO ITEM DESCRIP lON UNITS QUANTITY CQSATOTAL A 1 Lower and Raise CVWD Manhole or EA 4 $ 2000.00 $ 8000.00 Cleanout to Grade A-2 Lower and Raise CVWD Valve to EA 6 $ 1,500.00 $ 9,000.00 Grade TOTAL ALTERNATE #1 BID PRICE $ 17,000.00 The costs of any work shown or required in the Plans and Specifications, but not specifically identified as a Pay Item are included in the related Pay Item(s), and no additional compensation shall be due CONTRACTOR by virtue of CONTRACTOR'S compliance with the Plans and Specifications. C-4 revised TOTAL AMOUNT BASE BID IN FIGURES $ 1,429,520.00 TOTAL AMOUNT BASE BID IN WORDS One million hur hundred twenty nine thousand five hundred twenty dollar and zero cents IN WITNESS WHEREOF CONTRACTOR execute Bid as of date set forth on Page C-1: By: Signa(ure ,Must be notarized) Title: *"*;"Zn f y . 6 �afur e� A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of LoS A��'64.4. ) J On 20 /% before me, T Ah1rA 01V1AajL4 r �� personally appeared -ao8 o IA'a - - - `-~'— who roved to me on the basis of satisfactory evidence to be the person(s) whose names yare subscribed 441�r/�Keir he within instrument and acknowledged to me tha a/�iey executed the same in authorized capacity(ies), and that by i r their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Wi and and official sea{. a of Notary Public C-5 KELLY YANIRA ORELLANA Notary Public - California OMY os AngelesCounty Commission k 2289476 COrnfn. Eupires May 20, 2023 AGREEMENT THIS AGREEMENT is made and entered into this 16t' day of April 2020, by and between City of Palm Desert, California; hereafter called "CITY," and Leonida Builders, Inc. hereinafter called "CONTRACTOR." W I T N E S S E T H RECITALS: CONTRACTOR has submitted to CITY its Contractor's Bid for the construction of CITY Project, ALESSANDRO ALLEY IMPROVEMENTS — PHASE I, PROJECT NO. 817-16; CONTRACT NO. C38790, in strict accordance with the Contract Documents identified below, and CITY has accepted said Bid. 2. CONTRACTOR states that it has re-examined its CONTRACTOR'S Bid and found it to be correct, has ascertained that its Subcontractors are properly licensed and possess the requisite skill and forces, has examined the site and Contract in accordance with the Contract Documents for the money set forth in its Bid to be paid as provided in the Contract Documents. AGREEMENT. - IT IS AGREED BY THE PARTIES AS FOLLOWS: 1. Contract Documents: The entire contract consists of the following: (a) The Agreement, (b) The Notice Inviting Bids, (c) The Instruction to Bidders, (d) The Contractor's Bid, (e) Public Works Contractor DIR Registration Certification, (f) Noncollusion Declaration, (g) The Bidder's Bond, (h) Performance Bond, (i) The Payment Bond, 0) The Iran Contracting Certification, (k) General Specifications, (1) The Special Provisions, (m) The Standard Specifications as modified in other portions of the Contract Documents, (n) The Plans, (o) Any Change Orders issued, (p) Any additional or supplemental specifications, notices, instructions and drawings issued in accordance with the provisions of the Contract Documents (q) The Determination of Prevailing Wage Rates for Public Works, (r) Addenda Nos. 1 and 2 . All of said Documents presently in existence are by this reference incorporated herein as if here set forth in full and upon the proper issuance of their documents they shall likewise be deemed incorporated. 2. Contractor shall commence the work within ten calendar days after the date of the Notice to Proceed and will do all things necessary to construct the work generally described in Recital No. 1 in accordance with the Contract Documents and will complete said work within 150 Calendar Days from the Notice to Proceed date to the satisfaction of the Engineer. 3. Contractor agrees to indemnify, defend and save CITY and its officers, agents and employees, and the Engineer harmless from: a Any and all liability, claims, damages, losses or injuries to any person or other entity, including injury to Contractor's employees, and all claims which arise from or are connected with the negligent performance of or failure to perform the work or other obligations of this Agreement, or which are caused or which are claimed to be caused by the negligent or intentional acts or omissions of Contractor, its subcontractors, its agents or employees, and, all expenses of investigating and defending against same, b. Any and all liability, claims, damages, losses or injuries to any and all contractors, subcontractors, material -men, laborers, or any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of theAgreement. c Attention is directed to the General Specifications - Claims, Liability, and Indemnity Agreement/Hold Harmless sections, which specifications are made part of this Agreement as set forth in Agreement paragraph 1, above. d. Attention is directed to Section 6-9, "Liquidated Damages" of the Standard Specifications and is hereby amended to substitute the "City of Palm Desert" in place of "Agency." Liquidated damages shall be $1,000.00 per calendar day of delay. 4. Should any litigation or arbitration be commenced between the parties concerning the works of improvements as referenced herein, the prevailing party in any such litigation, being the CITY or the Contractor, should be entitled to a reasonable sum for attorney's fees incurred in any such litigation relating to this Contract. 5. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. 6. Contractor shall be paid in the manner set forth in the Contract Documents the amount of its Bid as accepted by CITY, subject to such additions and deductions as may be made pursuant to the Contact Documents and applicable law. Satisfactory Performance: The prime Contractor agrees to pay each Subcontractor under this prime contract for satisfactory performance of its contract no later than 10 days from the receipt of each payment the prime Contractor receives from City of Palm Desert. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the City of Palm Desert. Release of Retention: The prime Contractor agrees further to release retention payments to each Subcontractor within 30 days after the Subcontractor's work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the City of Palm Desert. 7, Provisions Required by Law and Contractor Compliance. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal state and local laws, rules and regulations, including but not limited to the provisions of the California Labor Code and the California Public Contract Code. 8. Execution of the Agreement by the parties constitutes their agreement to abide by all applicable provisions of the California Labor Code; constitutes contractor's certification that he is aware of the provisions of said Code and will comply with them; and further constitutes Contractor's certification asfollows: "I am aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this contract." IN WITNESS WHEREOF the parties hereto have executed or caused to be executed by their duly authorized officials, this Agreement which shall be deemed an original on the date first above written. CONTRACTOR: BY: (Signature to be notarized) TITLE: CITY: BY: TITLE: Mayor of Palm Desert, CA APPROVED AS TO CONTENT: TOM GARCIA, P.E. DIRECTOR OF PUBLIC WORKS ATTEST BY: TITLE: FAUMS : A TITLE: City Clerk of Palm Desert, CA APPROVED AS TO FORM: ROBERT W. HARGREAVES CITY ATTORNEY CONTRACTOR ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of On , 20 before me, , a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That whereas the City of Palm Desert has awarded to Leonida Builders, Inc. hereinafter designated as the "Principal", a contract for: ALESSANDRO ALLEY IMPROVEMENTS — PHASE I PROJECT NO. 817-16 CONTRACT NO. C38790 WHEREAS, said Principal is required under the terms of said contract to furnish a good and sufficient bond for the performance of said contract: NOW THEREFORE, WE Leonida Builders, Inc. the Principal, and as Surety, are held and firmly bound unto the City of Palm Desert hereinafter called the City, in the penal sum of One Million Four Hundred Sixty -Two Thousand Twentv and no cents Dollars ($ 1,462,020.00), being 100% of the contract amount in lawful money of the United States of America for the payment of which sum well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one (1) year guarantee of all materials and workmanship: and shall indemnify and save harmless the City, its officials, officers, employees, and authorized volunteers, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force an effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney's fees, incurred by the City in enforcing such obligation. As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by the City, during which time if the Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by a defective materials or faulty workmanship. The obligations of Surety hereunder shall continue so long as any obligation of the Contractor remains. Nothing herein shall limit the City's rights or the Contractor or Surety's obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure Section 337.15. Whenever the Contractor shall be, and is declared by the City to be in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City's option: a. Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or b. Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages, for which Surety may be liable. The term "balance of the contract price" as used in this paragraph shall mean the total amount payable to the Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. c. Permit the City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages, for which Surety may be liable. The term "balance of the contract price" as used in this paragraph shall mean the total amount payable to the Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligation in the event of default by the Contractor. Surety shall not utilize the Contractor in completing the Project nor shall Surety accept a bid from the Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City's objection to the Contractor's further participation in the completion of the Project. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice to any such change extension of time, alteration or addition to the terms of the Contract Documents or to the Project. IN WITNESS WHEREOF, 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 this day of , 20 (Corporate Seal) Contractor/Principal Af Title: (Corporate Seal) Surety In Attorney -in -Fact Signatures of those signing for the Contractor/Principal must be notarized and evidence of corporate authority attached. (Attach Attorney -in -Fact Certificate) Title: The rate of premium on this bond is $ per thousand. The total amount of premium charged: $ (The above must be filled in by corporate surety) Signatures of those signing for the Contractor/Principal and Surety must be notarized and evidence of corporate authority attached. A copy of the Power -of -Attorney to local representatives of the bonding company must be attached hereto. IMPORTANT: Surety companies executing bonds must possess a certificate of authority from the California Insurance Commissioner authorizing them to write surety insurance defined in Section 105 of the California Insurance Code, and if the work or project is financed, in whole or in part, with federal, grant or loan funds, it must also appear on the Treasury Department's most current list (Circular 570 as amended). Surety Name: i Address: THIS IS A REQUIRED FORM Any claims under this bond may be addressed to: Agent or Representative for service of process in California if different than Surety Name: City/State/Zip Code: Telephone No.: Address: City/State/Zip Code: Telephone No.: NOTE: A copy of the Power -of -Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto. SURETY ACKNOWLEDGEMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of On before me, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public PRINCIPAL ACKNOWLEDGEMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of On before me, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public PAYMENT BOND KNOW ALL MEN BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (sometimes referred to hereinafter as "City") has awarded to Leonida Builders, Inc. (hereinafter designated as the "CONTRACTOR/PRINCIPAL"), an agreement dated April 16, 2020 described as follows: ALESSANDRO ALLEY IMPROVEMENTS — PHASE I, PROJECT NUMBER 817-16, CONTRACT NO. C38790) (hereinafter referred to as the "Contract"); and WHEREAS, said CONTRACTOR is required to furnish a bond in connection with said Contract, and pursuant to Section 9100 of the California Civil Code; WHEREAS, said Principal is required to furnish a bond in connection with said Contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for, or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth. NOW, THEREFORE, we, Leonida Builders, Inc. the undersigned CONTRACTOR, as Principal, and a corporation organized and existing under the laws of the State of and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Palm Desert and to any and all persons, companies or corporations entitled to file stop payment notices under Section 9100 of the California Civil Code, in the sum of One Million Four Hundred Sixtv-Two Thousand Twentv and no cents Dollars ($ 1,462,020.00), said sum being not less than one hundred percent (100%) of the total amount payable by the said City under the terms of the said Contract, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that, if said CONTRACTOR, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Civil Code Section 9100, fail to pay for any materials, provisions or other supplies, implements, machinery or power used in, upon, for or about the performance of the Public Work contracted to be done, for any work or labor of any kind, or for bestowing skills or other necessary services thereon, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of said CONTRACTOR and his or its Subcontractors pursuant to Revenue and Taxation Code Section 18663 with respect to such work and labor the Surety or Sureties hereon will pay for the same in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by the City in such suit, including reasonable attorney's fees, court costs, expert witness fees and investigation expenses. This bond shall inure to the benefit of any of the persons named in the Civil Code Section 9100 as to give a right of action to such persons or their assigns in any suit brought upon this bond. It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification, in, to or of any contract plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or the City and the original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that the claimant is a person described in the Civil Code Section 9100, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned, including but not limited to the provisions of Sections 2819 and 2845 of the California Civil Code. IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of , 20 PRINCIPAL/CONTRACTOR: (Typed Name of Principal/Contractor) SURETY: By: By: (Signature) (Signature to be Notarized) (Typed Name and Title) (Typed Name of Surety) (Signature of Attorney -in -Fact) (Signature to be Notarized) (Typed Name of Attorney -in -Fact) The rate of premium on this bond is $ per thousand. The total amount of premium charged: $ (The above must be filled in by corporate surety) IMPORTANT: Surety companies executing bonds must possess a certificate of authority from the California Insurance Commissioner authorizing them to write surety insurance defined in Section 105 of the California Insurance Code, and if the work or project is financed, in whole or in part, with federal, grant or loan funds, it must also appear on the Treasury Department's most current list (Circular 570 as amended). Signatures of those signing for the Principal/Contractor and Surety must be notarized and evidence of corporate authority attached. A copy of the Power -of -Attorney to local representatives of the bonding company must be attached hereto THIS IS A REQUIRED FORM Any claims under this bond may be.addressed to: Agent or Representative Surety process in California if Surety j Name: Name: Address: Address: City/State/Zip Code: City/State/Zip Code: for service of different than I I --- -� Telephone No.: Telephone No.: I SURETY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of On before me, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public PRINCIPAL ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of On before me, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public