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HomeMy WebLinkAboutC24360A Arterial Slurry Seal Pgrm 751-06AREQUEST: SUBMITTED BY: APPLICANT: DATE: CONTENTS: Recommendation: CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT Award Contract No.C24360A to Pavement Coatings Co. of Cypress, California for Construction of the Citywide Arterial Slurry Seal Program (Project No. 751-06A) Mark Greenwood, P.E., Director of Public Works Pavement Coatings, Co. P.O. Box 1491 Cypress, California 90630 June 22, 2006 Vicinity Map Contract Agreement Contractor's Proposal By minute motion: 1. Award Contract No.C24360A, in the amount of $1,101,600.00, to Pavement Coatings Co., of Cypress, California for Construction of the Citywide Arterial Slurry Seal Program (Project No. 751-06A); 2. Approve a 10% contingency in the amount of $110,160.00; and 3. Authorize the Mayor to execute the subject agreement. Discussion: As part of the annual street maintenance program, slurry seal plays a vital role in prolonging street pavement life and protecting the City's investment. The Citywide Arterial Slurry Seal Program will use rubberized slurry seal on several of the major streets within the City of Palm Desert. The rubberized slurry has an elastic quality that prolongs street life longer than conventional slurry. The streets scheduled to receive the slurry seal treatment include portions of Monterey Avenue, Frank Sinatra Drive, Eldorado Drive, Portola Avenue, and El Paseo. Award Contract C24360A to Pavement Coatings Co.. June 22, 2006 Page 2 of 2 The City advertised the project and publicly opened bids June 13, 2006. The results of the bids are as follows: Pavement Coatings Co., Cypress American Asphalt South, Inc, Fontana Bond Blacktop, Inc., Union City $1,101,600.00 $1,143,000.00 $1,202,400.00 Upon award of the contract, the following is the schedule for project completion: City Council Contract Award June 22, 2006 Construction Period (30 Calendar Days) Sept. 2006 through Oct. 2006 Project Acceptance November 2006 Funding is available for this project in account 110-4311-433-3320. Therefore, staff recommends that City Council award Contract No. C24360A in the amount of $1,101,600.00 (plus a 10% contingency) to Pavement Coatings Co. for construction of the Citywide Arterial Slurry Seal Program (Project No. 751-06A). Submitted By: Department Held: Ry. Gay, r P • ject A ministrator Approval: 41-lomer C. ACM fo elopment Services Carlos L. O ' ga City Manager /rg/d h l Mark Green*ood, P.E. Director of Public Works Paul Gibson Director of Finance CITY COUNCIL ACTION: APPROVED r/ DENIED RECEIVED OTHER MEETING DATE („ AYES : 60.4 c'n CJl r(•PS NOES: 1.4N06. ABSENT: tJC (LQ,, ABSTAIN: VERIFIED ;''rigina1 on File wi ty G:IPubWorks\Staff Reports120061.1une 22112 Award arterial slurry seal 751-06A C24360A1Award contract C24360A slurry seal 751-06A.doc Contractor's Proposal Citywide Arterial Slurry Seal Program Project No. 751-06A Contract No. C24360A TO: CITY OF PALM DESERT, "Owner" DATE: June 13th, 2006 BIDDER: Pavement Coatings Co. "Contractor' The UNDERSIGNED, "Contractor", having carefully examined the site and the Contract Documents for the construction of, Citywide Arterial Slurry Seal Program, Project No. 751-06A, Contract No. C24360A, hereby proposes to construct the work in accordance with the Contract Documents, including Addenda No(s). Nol for the amount stated in this Proposal. By submitting this Proposal, Contractor agrees with Owner: 1. That unless withdrawn in person by Contractor or some person authorized in writing by Contractor — not by telephone or telegram — before the time specified in the Notice Inviting Bids for the public opening of bids, this Proposal constitutes an irrevocable offer for 60 calendar days after that date. 2. The Owner has the right to reject any or all Proposals and to waive any irregularities or informalities contained in a Proposal. 3. That the contract shall be awarded only by the governing body of OWNER. Said contract shall only be deemed awarded after the contractor's complete submission of all contract documents, bonds, insurance documentation, and the OWNER shall obtain all necessary signatures of the governing body, at which time the contract shall be deemed awarded. 4. To submit to Owner such information as Owner may require to determine the Bidder's financial standing experience and to perform the work. 5. That the accompanying 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 check or bond is to be charged with the costs of the resultant damages to Owner, 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 Owner 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 and cost of maintaining or construction alternate facilities occasioned by the failure to execute and deliver said documents. Page C-1 It is understood that the quantities shown hereon, except for those quantities marked "Lump Sum", are but estimates and the final payment will be based upon the actual work performed, subject to such adjustment and alterations as elsewhere provided herein. Apply Type It Rubberized Emulsion Aggregate Slurry (REAS) TOTAL BID PRICE ' $ 1 I�lol_ b00.0 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. TOTAL AMOUNT BASE BID IN FIGURES $ 1, l o l , b©O •Oa TOTAL AMOUNT BASE BID IN WORDS o.­,e T/lvcc5/I�'� SAX l++ArrJ/1�/J Oa<<A�5 I�AJ✓' xrR� �F�%s IN WITNESS WHEREOF Contractor executed this proposal as of date set forth on Page C-1: ac By: Signature Title: president, Secretary & CFO Contractor Attest by: Notary Public in and for said County and State Title: voT.lR,/ P"oL�tc 0kA&)L-e_ -AL1rmvr,4 VAN P. DUNCAN p COMM. #1375838 2 NOTARY PUBLIC - CALIFORNIA p ORANGE COUNTY My Commotion Expires Sept 21, 2006 Page C-2 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Orange On June 12, 2006 before me, Van P. Duncan, Notary Public, personally appeared Marsha Coolidge personally known to me (or 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. WITNESS my hand and official seal. VAN R DUNCAN p COMM. #1375838 NOTARY PUBLIC - CALIFORNIA p ORANGE COUNTY -' My Commission Expires Sept. 21, 2006 { Van P. Duncan, Notary Public Information Required of Bidder The bidder is required to supply the following information. Additional sheets may be attached if necessary. (1) Address P. 0. Box 1491, Cypress, CA 90630 (2) Telephone No. 7 14 / 8 2 6 - 3 011 (3) Type of Firm (Individual, Partnership or Corporation) Corporation (4) Corporation organized under the laws of the State of California (5) Contractor's License No. 303609 Exp'* Date 0 9- 3 0- 0 6 Contractor hereby swears under penalty of perjury that this information provided is true and correct. By:Awx�—QdJ,_ Title: President Signature G Contractor (6) List the names and addresses of all owners of the firm or names and titles of all officers of the corporation: Marsha Coolidge President, Secretary & CFO Doug Ford Vice -President (7) Number of years' experience as a Contractor in construction work (8) List at least three similar projects completed recently: 33 Contract Amount Class of Work Date Completed Name, Address & Telephone No. of Owner See Attached List Page D-1 PAVEMENT COATINGS -CO. P.O. Box 7497, Cypress, California, 90630, 774-826-3017, CFAX) 774-826-3729 Contractor's License Number 303609 REFERENCES - REAS PROJECTS 2005 City of Manhattan Beach Juan Price 310/802-5310 $76,990 2005 City of Solana Beach Dan Goldberg 858/720-2474 $257,044 2004 City of Lemon Grove Majed Al -Chaffy 619/825-3810 $77,742 2004 City of Paramount Jason Brown 562/908-6200 $52,391 2004 City of San Clemente Gary Voborsky 949/361-6132 $75,005 2003 City of Fountain Valley Jaines Sharp 714/593-4413 $91,355 2003 Manhole Adjusting John Valez 323/725-1387 $231,506 City of Azusa 2002 City of Palm Desert J. Middleton 760/346-0611 $227,968 2001 City of Del Mar Tom Norton 619/465-2821 $36,102 2001 L.A. County P.W. Steve Lee 323/261-2160 $207,534 2000 City of Vista Peter Struck 760/726-1340 $150,714 (9) List the names and addresses of each Subcontractor who will perform work in or about the work improvement, and indicate what portion of the work will be done by each Subcontractor: Subcontractor's Name: 5 T fZ I Pi,,) t�- License Number: % 4 G Z" Address: � `I2.3 `f v I NF�-,n r' d 5.7 Telephone: �7- 7 R Work to be performed: Y'o✓r-,o--J 0 * 5 va , rp It--' L-_ r1Ajet( I..;G,�7 A,—.l P1 A ✓f heCl s Subcontractor's Name: License Number: Address: Telephone: Work to be performed: Subcontractor's Name: License Number: Address: Telephone: Work to be performed: (10) List the name of the person who inspected the site of the proposed work for your firm Doug Ford (11) A financial statement or other information and references sufficiently comprehensive to permit an appraisal of your current financial condition may be required by the Owner. Page D-2 Non -Collusion Affidavit To be Executed by Bidder and Submitted with Bid STATE OF CALIFORNIA) ) SS COUNTY OF RIVERSIDE) Marsha Coolidge being first duly sworn, deposes and says that he/she is President of Pavement Coati nqs Co. , the party making the foregoing bid; that the bid is not made in the interest of, or on behalf of N 1A , any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder, or to secure any advantage against the pubic body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. Subscribed and sworn to, before me this 13 t h day of J u n e , 20 06 Title: President, Secretary & CFO Contractor Attest By: Notary Public in and for said County and State Title: Po , AAy Pu b�(C ORFkN c-r-- .Celt-t FoQr�d 211♦1111111/11111♦111i•111111+11111111H11 • VAN P. DUNCAN COMM. #1375838 2 NOTARY PUBLIC - CAUFORNIA p ORANGE COUNTY IAy Cemmlee(on Expplrea S 17Seeppt 21, 2006 IIHIIH11111/111111♦111411/1111111111♦ Page E-1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Orange On June 12, 2006 before me, Van P. Duncan, Notary Public, personally appeared Marsha Coolidge personally known to me (or 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 pepson(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. 5111111111111111♦♦1110111/11010111111111N� VAN P. DUNCAN COMM, #1375838 NOTARY PUBLIC-CALIFORNIA p ORANGE COUNTY 1♦My Commleeion Expires Srrppt 21, 2006 N1111111111111111111111110111111/11111/ JCL... I�%�t- ,�e� N�roy?y I"kh1.1 Van P. Duncan, Notary Public BIDDER'S BOND To Accompany Proposal KNOW ALL MEN -BY THESE PRESENTS, That we, Pavement Coatings Co. as principal, and Fidelity and Deposit Company of Maryland as surety, are held and firmly bound unto the City of Palm Desert in the sum of $ 10% (10% of bid) to be paid to the said Owner or its certain attorney, its successors and assigns; for which payment, well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors or assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the certain proposal of the above bounden principal to perform certain work described as follows: The general items of work to be done hereunder consist of: mobilization; application of rubberized slurry seal; installation of striping, pavement markings, and pavement markers; and installation of traffic control devices required during construction of the improvements and all appurtenant work as required by the plans and specifications, and dated June 13, 2006 is accepted by the City of Palm Desert, and if the above bounden principal Pavement Coatings Co. shall duly enter Into and execute a contract for such construction, and shall execute and deliver the Performance Bond and Payment Bond and insurance certificates as required by said contract, then this obligation shall become null and void; otherwise it shall be and remain In full force and effect. Should it become necessary for the owner to institute a lawsuit, or any other legal proceeding to enforce - the terms and conditions of this bond, then all costs of said proceeding, including attomey's fees, shall be awarded to the prevailing party. IN WITNESS WHEREOF, We hereunto set our Hands and Seals this 7th day of June 20 06 Contract rs name' Pavement Coatings Co. By: Sure S Name: Fidelity nd Deposit By: 4 MARSHA COOUDGE Rr@jldaw Secretary 8-CFO Company of Maryland Address: 01,1. B and Blvd., Glendale, CA 91203 Title: Telephone: Attorney in Fact 800 347-5679 Page F-1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Los Angeles On JUN 07 2' before me, Clarice Lee, Notary Public, personally appeared Lisa L. Thornton personally known to me (or 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. WITNESS my hand and official seal. yj � �$yi� 1�i� `,Gf•il, l..:;Nll tl;: vuiib I i. ��i(i$ ClOc-e Lee ``� Power of Attorney FIDELITY AND DEPOSIT COMPANY OF MARYLAND KNOW ALL MEN BY THESE PRESENTS: That the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, a corporation of the State of Maryland, by PAUL C. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary, in pursuance of authority granted by Article V 1, Section 2, of the By -Laws of said Company, w ' set forth on the reverse side hereof and are hereby certified to be in full force and effect on the date hereof d s nate, constitute and appoint Lisa L. THORNTON, of Los Angeles, California, its true an tto -Fact, to make, execute, seal and deliver, for, and on its behalf as surety, and a d uedert>tlaags, and the execution of such bonds or undertakings in purs en g upon said Company, as frilly and amply, to all intents and purposes, e wledged by the regularly elected officers of the Company at its office in ns. This power of attorney revokes that issued on behalf of Lisa L. a The said Assistant c t the extract set forth on the reverse side hereof is a true copy of Article Vl, Section 2, of the By- any, and is now in force. IN WITNESS OF, the said Vice -President and Assistant Secretary have hereunto subscribed their names and affixed the Corporate Seal of the said FIDELITY AND DEPOSIT COMPANY OF MARYLAND, this 4th day of August, A.D. 2003. ATTEST: W W 4 n� State of Maryland 1 ss: City of Baltimore f FIDELITY AND DEPOSIT COMPANY OF MARYLAND T. E. Smith Assistant Secretary Paul C. Rogers Vice President On this 4th day of August, A.D. 2003, before the subscriber, a Notary Public of the State of Maryland, duly commissioned and qualified, came PAUL C. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, to me personally known to be the individuals and officers described in and who executed the preceding instrument, and they each acknowledged the execution of the same, and being by me duly sworn, severally and each for himself deposeth and saith, that they are the said officers of the Company aforesaid, and that the seal affixed to the preceding instrument is the Corporate Seal of said Company, and that the said Corporate Seal and their signatures as such officers were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporation. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my Official Seal the day and year first above written. a.N& �y ..�.e Dennis R. Hayden Notary Public My Commission Expires: February 1, 2009 POA-F 012-3265C 760 3417098 02 50 46 p m 06-06-2006 1 12 J CITY OF PALM DESERT J CALIFORNIA ADDENDUM NO. 1 Citywide Arterial Slurry Seal Program PROJECT NO.751-06 CONTRACT NO. C24360A ISSUED June 6, 2006 CITY ENGINEER IMPORTANT NOTE: RECEIPT OF THIS ADDENDUM MUST BE ACKNOWLEDGED IN CONTRACTOR'S PROPOSAL 760 3417098 02 51: *14 p.m 06-06-2006 212 This addendum changes the following items for the project bid documents for the above referenced project: Page A-1 Paragraph number 1 of the Notice Inviting Bids should be replaced with the following: PUBLIC NOTICE IS HEREBY GIVEN that the City of the Palm Desert, as AGENCY invites sealed bids for the above stated project and will receive such bids in the offices of the City Clerk up to the hour of 2:30 P.M. on Tuesday, the 13t` day of June, 2006, at which time they will be publicly opened and read aloud. W 1 I' GRAPEVINE ST h Citywide Arterial Slurry Seal Program Vicinity Map 35TH AVE GERALD F COUNT T-CLUB DR h HOVLEY LN 4 Y 8 f ' 1 42ND AVE 1- 7t1filLYM.4 8 V FRED WARING DR STATE HWY 111 FAIRWAY DR COUNTRY GLUE DR O -J LEY LN E "C) Agreement THIS AGREEMENT is made and entered between City of Palm Desert, California, Coatinqs Co. hereinafter called "Contractor" RECITALS: into this 22"d day of June, 2006, by and hereafter called "Owner" and Pavement WITNESSETH Contractor has submitted to Owner its Contractor's Proposal for the construction of Owner Project, Citywide Arterial Slurry Seal Program, PROJECT NO. 751-06A, CONTRACT NO. C24360A, in strict accordance with the Contract Documents identified below, Owner has accepted said Proposal. 2. Contractor states that it has re-examined its Contractor's Proposal 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 Proposal 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 Proposal; (e) The Bidder's Bond; (f) The Performance Bond; (g) The Payment Bond; (h) The General Conditions; (i) The Special Provisions; 0) The Standard Specifications as modified in other portions of the Contract Documents; (k) The Plans; (1) Addendum No. 1 ; (m) The Determination of Prevailing Wage Rates for Public Work; (n) Any Change Orders issued; (o) Any additional or supplemental specifications, notices, instructions and drawings issued in accordance with the provisions of the Contract Documents. 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 thirty (30) calendar days from the Notice to Proceed date to the satisfaction of the Engineer. 3. Contractor agrees to indemnify, defend and save Owner and its officers, agents and employees, and the Engineer harmless from: Page G-1 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, a. 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 the Agreement. 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. 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 dollars 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 Owner or the Contractor, should be entitled to a reasonable sum for attorneys 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 Proposal as accepted by Owner, 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. Page G-2 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. 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 as follows: "I am aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for worker's compensation or to undertake self insurance in accordance with the provisions of that Code, and 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. [Remainder of this page has intentionally been left blank. Signature blocks are contained on the next page] Page G-3 CONTRACTOR: BY: Signature to be notarized TITLE: OWNER: BY: Signature to be notarized TITLE: Mayor of Palm Desert, CA APPROVED AS TO CONTENT: MARK GREENWOOD, P.E. DIRECTOR OF PUBLIC WORKS ATTEST BY: TITLE: ATTEST BY: TITLE: City Clerk of Palm Desert, CA APPROVED AS TO FORM: DAVID J. ERWIN CITY ATTORNEY Page G-4 Performance Bond KNOW ALL MEN BY THESE PRESENTS: That whereas the City of Palm Desert has awarded to Pavement Coatinqs Co. hereinafter designated as the "Principal", a contract for: Citywide Arterial Slurry Seal Program PROJECT NO. 751-06A CONTRACT NO. C24360A 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, Pavement Coatinas Co. the Principal, and _ as Surety, are held and firmly bound unto the City of Palm Desert hereinafter called the Owner, in the penal sum of One million one -hundred one thousand six -hundred and no cents Dollars ($1,101,600), 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 above bounded Principal, his executors, heirs, administrators, and successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants and agreements in the said contract and any alterations thereof made as therein provided, on his or their 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 Owner, its officers and agents, as therein stipulated, then 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 terms of the contract or to the work to be performed thereunder or the specifications accompanying the same shall in any wise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alterations or additions to the terms of the contract or to the work or the specifications. Should it become necessary for the Owner to institute a lawsuit or any other legal proceeding to enforce the terms and conditions of this bond, then all costs of said proceeding, including attorneys' fees, shall be awarded to the prevailing party. Page H-1 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 SURETY INSURANCE COMPANY and/or AGENT ADDRESS TELEPHONE NUMBER PRINCIPAL Page H-2 Payment Bond KNOW ALL MEN BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (sometimes referred to hereinafter as "Obligee") has awarded to Pavement Coatings Co. (hereinafter designated as the "Contractor"), an agreement dated June 22, 2006 described as follows: Citywide Arterial Slurry Seal Program, PROJECT NO. 751-06A, CONTRACT NO. C24360A, (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 3247 of the California Civil Code; NOW, THEREFORE, we, Pavement Coatings Co. ., 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 notices under Section 3181 of the California Civil Code, in the sum of One million one -hundred one thousand six -hundred and no cents Dollars ($1,101.600.00), said sum being not less than one hundred percent (100%) of the total amount payable by the said Obligee 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 heirs, executors, administrators, successors or assigns, or Subcontractors, shall 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, or to pay any person 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 from the wages of employees of said Contractor and his or its Subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor as required by the provisions of Section 3247 through 3252 of the Civil Code, or for any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board or Internal Revenue Service from the wages of employees of the Contractor or his or its Subcontractors, the Surety or Sureties hereon will pay for the same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void. In addition to the provisions herein above, it is agreed that this bond will inure to the benefit of any and all persons, companies and corporations entitled to serve stop notices under Section 3181 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Page 1-1 The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the said Contract or to the work to be performed thereunder or the Specifications affect its obligations on this bond, and it do( extension of time, alteration or addition Specifications. accompanying the same shall in any way s hereby waive notice of any such change, to the terms of the Contract or to the No final settlement between the Obligee and the Contractor hereunder shall abridge the right of any beneficiary hereunder, whose claim may be unsatisfied. Contractor and Surety agree that if the Obligee is required to engage the services of an attorney in connection with the enforcement of the bond, each shall pay Obligee's reasonable attorney's fees incurred, with or without suit, in addition to the above sum. IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of , 20 PRINCIPAL/Contractor: (Typed Name of Contractor) By: (Signature) (Typed Name and Title) The rate of premium on this bond is $ SURETY: In The total amount of premium charged: $ (the above must be filled in by corporate surety). (Typed Name of Surety) (Signature of Attorney -in -Fact) (Typed Name of Attorney -in -Fact) per thousand. 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). THIS IS A REQUIRED FORM. Any claims under this bond may be addressed to: (Name, Address and Telephone No. of Surety) (Name, Address and Telephone No. of agent or representative for service of process in California if different from above) Page 1-2