HomeMy WebLinkAboutAwrd - C30400 - Prkvw Prof Office Cmplx - TI Ste 100 CITY OF PALM DESERT
FINANCE DEPARTMENT
STAFF REPORT
REQUEST: (1) AWARD THE BID AND APPROVE CONTRACT NO. c3o400
FOR $216,000 PLUS A 10% CONTINGENCY TO DOUG WALL
CONSTRUCTION, INC. TO CONSTRUCT THE TENANT
IMPROVEMENTS FOR THE STATE WATER RESOURCES
SUITE 100 AT THE PARKVIEW OFFICE COMPLEX.
(2) APPROPRIATE $216,000 FROM THE PARKVIEW OFFICE
COMPLEX FUND 510.
SUBMITTED BY: PAUL S. GIBSON, FINANCE DIRECTOR
APPLICANT: DOUG WALL CONSTRUCTION, INC.
78450 AVE. 41
BERMUDA DUNES, CA 92203
DATE: DECEMBER 9, 2010
CONTENTS: TWO COPIES OF CONTRACT
Recommendation
By Minute Motion, that the City Councii (1)award the bid and approve
contract no.c3o400 for $216,000 plus a 10% contingency to Doug Wall
Construction, Inc. to construct the tenant improvements at the State of
California Water Resources suite 100 at the Parkview Office Complex and
(2) appropriate $216,000 from the Parkview Office Complex Fund 510.
Backqround
The State of California Water Control Board currently leases Suite 100 at the Parkview
Office Complex (single story building), and they have occupied the space since 1991.
The State Water Resources Control Board has requested some changes to their current
space, which will include replacing all the carpets, repainting the suite, installing new
computer cabling, and renovating the current laboratory space into a Board of Directors
conference room. The State Water Resources control board will enter into an 8-year
lease agreement with the City of Palm Desert to continue to lease suite 100 at the
Staff Report
State of California Water Resources Tenant Improvements
December 9, 2010
Page 2 Of 2
Parkview Office Complex. The lease will commence once tenant improvements are in
place and approved by the state.
The following bids were received for the aforementioned tenant improvement project:
Contractor Bid Price Main Office
1. Doug Wall Construction, Inc. $216,000 Bermuda Dunes CA
2. D.W. Johnston Construction, Inc $248,000 Palm Springs, CA
3. Interlog Corporation $275,000 Brea, CA
4. Orr Builders $278,000 Palm Desert, CA
5. Dalke & Sons Construction, Inc. $316,680 Riverside, CA
In addition to the winning bidder, the flooring, computer cabting, carpet, demolition, and
glass work will be completed by local entities.
Given the potential environmental impact along with the effects of the exhaust from the
laboratory, City staff is in full agreement with the removal of the laboratory, especially at
the State's cost. The State will repay the City for $118,550 of the cost of tenant
improvements; the city will pay for the cost of the carpet, paint, and computer cabling.
The State portion will be repaid to the City in 48 months at 7%.
It is Staff's recommendation to award the bid and approve contract no:c3040ofor
$216,000 plus a 10% contingency to Doug Wall Construction, Inc. to construct the
tenant improvements at the State of California Water Resources Suite. The 10%
contingency is requested to cover any unforeseen costs associated with the demolition
of the Laboratory.
Fiscal Analvsis
The tenant improvements are directly related to the 8 year lease agreement between
the City of Palm Desert and the State of California; the lease agreement cannot be
executed by the State without approval of the improvements. The anticipated gross
revenues over the life of this lease are $2,520,757. In addition, the State will reimburse
the City for the cost of the improvements plus $17,706 of interest over the first 4-years
of the lease.
Sub � d By: oval:
G"--G
Paul S. Gibson, Director of Finance n M. Wohlmuth, City Manager
REGULAR PALM DESERT CITY COUNCiL MEETING DECEMBER 9, 2010 �
F. REQUEST FOR AWARD OF CONTRACT TO CONSTRUCT THE TENANT IMPROVEMENTS AT SUITE 100
OF THE PARKVIEW PROFESSIONAL OFFICE COMPLEX FOR THE STATE OF CALIFORNIA WATER
RESOURCES BOARD TO DOUG WALL CONSTRUCTION IN THE AMOUNT OF $216,000 (CONTRACT
N0. C30400) .
Rec: By Minute Motion: 1) Award the bid and subject contract in the amount
of $216,000 to Doug Wall Construction, Inc. , Bermuda Dunes, California,
and authorize a 10� contingency for the project; 2) appropriate $216,000
from the Parkview Office Complex Fund 510 to the project and authorize
the Mayor to execute said contract.
C[TY COUNCILA�f"ii 'ION
APPROVED DF.NTF.D
RECEIVED OTHER
MEET G DATE �
AYES: �
NOES:
ABSENI:
ABSTAIN:
VERIFIED BY:
Original on Fite with Ci erk's Office
Contract No. C30400
AGREEMENT
THIS AGREEMENT is made and entered into this day of, 2010= by and
between the City of Palm Desert, California, hereafter called "CITY", and. hereinafter
called "Contractor".
WITNESSETH
RECITALS:
Contractor has submitted to CITY its Contractor's Proposal for the foltowing City
project,
1. TENANT IMPROVEMENTS FOR SUITE 555-100 AT THE PARKVIEW
OFFICE COMLPEX BUILDINGS, - in strict accordance with the Contract Documents
identified below and CITY 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:
I'I' 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; (� The Performance Bond; (g)The
Payment Bond; (h) The General and standard Specifications; (i) Addenda (if
applicable) Nos. _ and _; (j) Any Change Orders issued; (k) Any additional or
supplemental specifications, notices, instructions and drawings issued in
accardance 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 FIFTY (50) calendar days from the Notice to Proceed
date to the satisfaction of the City's Representative.
3. In performing its responsibilities under this Agreement, Contractor shall comply
with all federal, state, and local laws and regulations pertaining to the storage, use,
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Contract No. C30400
and disposal of"hazardous or toxic wastes, substances, or materials" as detined by
applicable law, to the extent such "hazardous or toxic wastes, substances, or
materials"are within Contractor's control. The Contractor agrees to indemnify the
City for any costs, fees, fines or losses that may result from environmental
contamination or natural resource damage on the subject property if caused by the
Contractor's performance in storing, using or disposing of hazardous or toxic
substances or materials or wastes such as, but not limited to, paints, lacquers,
thinners, adhesives, or other type coating or other water treatment chemicals. The
City acknowledges and agrees that the City shall be responsible for any legal or
other liability or damage arising out of the presence of environmental
contamination or natural resource damage on the subject property by any cause
other than the Contractor's performance in storing, using or disposing of hazardous
or toxic substances or materials or wastes as, but not limited to, paints, lacquers,
thinners, and other type coating or other water treatment chemicals.
4. Contractor agrees to indemnify, defend and hold the CITY and its officers, agents
and employees 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 the Agreement.
Attention is directed to the General Specifications, the plans, and drawings in its
entirety are made part of this Agreement as set forth in Agreement paragraph 1,
above.
5. 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 attomey's fees incurred in any such litigation relating to this Contract.
6. This Agreement shall be binding upon all parties hereto and their respective heirs,
executors, administrators, successors, and assigns.
7. Contractor shall be paid in the manner set forth in the Contract Documents the
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' Contract No. C30400
amount of its Proposal as accepted by CITY, subject to such additions and
deductions as may be made pursuant to the Contact Documents and applicable law.
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 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 ofticials, this Agreement which shall be deemed an
original on the date first above written.
CTTY OF PALM DESERT "CONTRACTOR"(signature to be notarized)
By: By:
Mayor S ignature
Attest:
Title
City Clerk
Approved as to content
David J.Erwin, City Attorney
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CITY OF PALM DESERT
GENERAL SPECIFICATIONS & STANDARD SPECI�ICATIONS
FOR
TENANT IMPROVEMENTS FOR SUITE 100 AT THE CITY OF PALM DESERT
PARKVIEW OFFICE COMPLEX BUILIDINGS
SCOPE OF WORK
The work to be done consists of furnishing all materials, equipment, tools, labor
and incidentals to remove and replace and construct the tenant improvements for suite 555-
100 at City of Palm Desert Parkview Office Complex Buildings as required by the contract
documents, architectural drawings and attached.
CONTRACTORS ARE RESPONSIBLE FOR ALL MEASUREMENTS AND
ESTIMATES, NO CHANGE ORDERS WILL BE ALLOWED FOR ERRORS IN
MEASUREMENTS AND ESTIMATES.
Thoroughly examine specifications, drawings, site of work and conditions under
which work will be performed before submitting a proposal. Any work which cannot
be prepared, constructed or installed as specified, shall 'unmediately be brought to the
attention of the City's representative in writing. If applicable an addenda will be issued.
1. Starting of work without such notification shall be considered acceptance by
the contractor of surfaces involved.
2. The Contractor shall replace unsatisfactory work caused by improper or
defective surfaces, as directed by the City's representative(s) at no
additional cost.
LOCATION OF WORK
The work is located at the Parkview Office Complex Buildings located at 73-720,
Suite 100,The State of California Water Resources Department, Palm Desert, CA 92260.
TIME OF COMPLETION
The Contractor shall complete all work in every detail as specified in part 2. of the
agreement, page I-1 of the Agreement. No extension to the Contract Time will be made for
changes in the work.
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PRE-CONSTRUCTION CONFERENCE
A pre-construction conference shall be conducted at the Parkview Office Complex,
73-710 Fred Waring Drive, Palm Desert, California, 92260 (Conference room TBD) prior
to the start of the project. The Contractor shall prepare a tentative progress schedule for
submission and review at the pre-construction meeting.
STANDARD SPECIFICATIONS
A. QUALITY ASSURANCE
1. All the work shall be performed by experienced skillful craftsmen to assure
finished work of first class quality and durability. The contractor shall have
a minimum of (5) years proven satisfactory experience and shall show
proof before commencement of work that he will maintain a qualified crew
throughout the duration of this project.
2. Contractor shall allow for all walkways, entrances to building to be
available Monday through Friday during normal business hours. Normally
6:00 a.m. through 7:00 p.m.
3. Vehicles and equipment shall be parked and placed as determined by the
City Representative.
4. Unattended build-ups, walkways, or other obstructions shall be secured at
all times to prevent risk of loss or injury to any person or property. The
contractor shall provide to the CITY in writing their plan on protecting the
aforementioned from misuse at all times, especially during non-working
periods. The contractor bears all risk and holds the city harmless regarding
the construction, demolition, and use of all build-ups, walkways and other
obstructions. No Exceptions will be granted for any reason.
B. PROFESSIONAL CARE
1. All work shall be subject to approval by the City of Palm Desert
representative(s).
2. Contractor shall correct all work that does not comply with the intent of the
specification.
3. Contractor shall coordinate with the City Representative(s) before using
noisy,motorized equipment.
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4. Contractor shall make every effort to prevent damage to the building,
entryways, and surrounding landscape.
5. The Contractor shall make every effort to prevent damage to any furnishings
and fixtures, surfaces not included in the bid, i.e. concrete floors, red brick
atrium floor, and other.
6. The daily start and stop times shall be coordinated through the City
Representative. Weekend and night work will be allowed and is
preferable when demolition is required.
DELIVERY,5TORAGE,AND HANDLING
A.DELIVERY:
1. The delivery of all equipment and materials, and other products is the sole
responsibility of the contractor. The City will malce every effort to provide a
location to store aforementioned equipment and materials, but does not
guarantee for the misuse, theft or destruction of the equipment and
materials.
B.STORAGE:
1. Only acceptable project materials shall be stored on site in a suitable
location, protected from tampering and loss.
2. Contractor shall provide adequate storage to restrict access to equipment
and project materials.
3. Contractor shall comply with health and safety codes, City of Palm Desert
Ordinances, and all Fire Regulations pertaining to the use and storage of all
materials. It is the Contractors responsibility to obtain all relevant literature
from those regulating agencies.
4. Where toxic and/or volatile /explosive/flammable materials are being used,
the Contractor shall provide adequate fireproof storage lockers and take all
necessary precautions and post adequate warnings (e.g. no smoking) as
. required. Materials that constitute a fire hazard (paints, solvents, drop
cloths, etc.) shall be stored in suitable closed and rated containers and
removed from the site on a daily basis. They City may allow for an adequate
lockable storage unit/locker to be placed in an enclosed parking location, at
the Contractor's cost; the contractor assumes all liability.
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C.ENVIRONMENTAL IMPACT:
l. Contractor shall comply with manufacturer's recommendation as to
environmental conditions under which may pertain to improvements
removal and replacement is covered. (See "Agreement" part 3
"Compliance with Environmental Law")
2. The contractor shall adhere and guarantee that at the quantity of volatile
organic compounds (VOC) used in removing and installing the
improvements, cleaning, moisture barrier, cements (concrete) and other
products used on this project does not exceed the limits permitted under the
current regulations for tile removal and installations of the South Coast Air
Quality Management District, or any other governing agency, if applicable.
3. Removal of tile, carpet, and subfloor shall comply with the regulations of
the air pollution control district having jurisdiction.
PRODUCTS:
See drawings, general specifications, and Exhibit B Outline Specifications.
COLORS:
See drawings, general specifications, and Exhibit B Outline Specifications.
STANDARD:
1. Contractor shall meet all relevant specifications of the American's with
Disabilities Act(ADA) pertinent to all tenant improvements installed.
IN5PECTION:
1. Contractor shall examine all areas scheduled for removal and installation
for conditions that would aversely affect execution, pertnanence or quality
of work and which cannot be put into acceptable condition through
preparatory work included in this proposal. Notify the City's Representative
in writing of any defects or conditions, which will prevent a satisfactory
installation prior to starting the project.
2. Contractor accepts full responsibility of area of construction and guazantees
proper application once project has begun.
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PROTECTION AND CLEAN UP:
1. The contractor shall protect floors,concrete slabs, staircase, signage, and
other areas not subject to improvements from damage throughout the
project.
2. The contractor shall provide clean drop cloths wherever necessary, and
orderly and carefully arrange and protect supplies, materials,and containers.
3. The contractor shall immediately clean up all accidental splatter, spillage,
and misplaced product and restore the affected surface to its original
condition.
4. At the completion of the work, the Contractor shall remove all materials,
supplies, debris and rubbish and leave each area in a clean acceptable
condition.
5. Contractor shall remove debris and rubbish from the jobsite on a daily basis.
Contractor shall arrange to have separate waste disposal bins at the jobsite
for their exclusive use. Contractor shall not use the onsite waste disposal
bins for the building tenants.
SUBSTITUTION OF SECURITIES
In conformance with the State of California Government Code Chapter 13, Section
4590, the Contractor may substitute securities for any moneys withheld by the CITY to
ensure performance under the contract.
At the request and expense of the Contractor, securities equivalent to the amount
withheld shall be deposited with the City or with a State or Federally chartered bank as the
escrow agent who shall pay such moneys to the Contractor upon notification by CITY of
Contractor's satisfactory completion of the contract.
The type of securities deposited and the method of release shall be approved
by the City Attorney's office.
CITY'S REPRESENTATIVE
The CITY will appoint or retain a City's Representative during the construction
period. The representative shall determine the amount, quality, acceptability and fitness of
all parts of the work, and interpret the Contract Documents. The City's Representative will
make visits to the site and determine if the work is proceeding in accordance with the
Contract Docuinents. No act or omission of the City's representative relieves Contractor of
the duty to proceed with the work in strict conformity with the Contract Documents.
Upon request, the City's Representative shall reduce to writing any oral order,
objection, requirement or determination. Wherever the City's Representative's approval is
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required it shall be in writing only. All communications to CTTY by Contractor shall be
via the City's Representative. No work shall be performed on site other than during
normal working hours without the knowledge and consent of the City's Representative.
The Contractor, and not the City's Representative, will be responsible for the construction
means, controls, techniques, sequences, procedures, and construction safety. As stated
elsewhere, amounts shown in the Proposal and Agreement as to quantities are but estimates
only.
The City's Representative shall direct Contractor as to the prosecution of the work
in such a manner as to increase or decrease such estimates as to the work actually to be
done. Contractor shall comply with such instructions and shall be paid only for work
actually done based on the unit price set out in the Agreement.
USE OF AND PROTECTION OF PREMISES AND REMOVAL OF DEBRIS
At its expense the Contractor shall:
A) Take every precaution against injuries to persons or damage to property.
B) Comply with regulations governing the use of the property.
C) Store and suitably protect its apparatus, equipment, materials, and supplies
in an orderly fashion on site.
D) Place on the work only such loads as are consistent with the safety of the
work.
E) Before final payment remove all surplus material, false work, temporary
structures, debris and similar matter resulting from its operations from the
site and return the site to its original condition.
F) Construct, operate and maintain all passageways, guard fences, lights,
barricades and other facilities required for protection by State or municipal
laws and regulations and local conditions during the course of the work.
G) Guard City's and private individual's property from injury or loss.
H) Take all reasonable precautions for dust and noise control and generally
conduct operations so as not to constitute a nuisance.
I) Be responsible for the protection of existing signs, fences, asphalt pavement,
concrete curb and gutter and other facilities, which may be encountered at the
jobsite. The replacement or repair of any facilities, which the CITY deems
necessary as a result of the Contractor's operations, shall be done by the
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Contractor at his own expense and to the satisfaction of the City's
Representative.
J) Be responsible for the protection of landscaping, irrigation, fences, storage
structures, and miscellaneous improvements at the Buildings and Parking
Lots, as well as, the private property of the tenants and visitors
CHANGE ORDERS
Each approved change order shall be considered as an amendment to the Contract
Documents and will not be considered approved until executed by the City Council.
BRAND OR TRADE NAME -SUBSTITUTE OF EOUALS
Reference is made to Section 4380 of the California Government Code, which is by
this reference incorporated herein with like effects as if herein with like effect as if here set
forth in full.
If a potential bidder believes he knows of an equal to a speci�ed brand or trade
name which is not mentioned in the Contract Documents, then such potential bidder may
so advise the CITY REPRSENTATNE of such fact, giving all relevant information. ff
appropriate, an addendum will be issued as to the alleged equal provided that such issuance
may be accomplished at least 5 days before the time fixed for opening bids.
Unless the subject article or product is expressly designated for matching others in
use in a particular public improvement either completed or in the course of completion, any
bidder may, as part of its bid proposal, include a request for substitution of an item equal to
any specified brand or trade name. At the pre-construction meeting, the Contractor may
submit to the CTTY REPRSENTATNE data substantiating such a request, and the
difference, if any, in cost. CITY REPRSENTATNE shall promptly investigate the request
and make a recommendation to the CITY as to equality. CITY shall promptly determine
whether the substitute is equal in every respect to the item specified, and approve or deny
the request accordingly, and shall notify the CONTRACTOR of the determination made, in
writing of the decision. Unless the request is granted, substitution will not be permitted.
Nothing herein shall authorize a change in the contract price or prevent the use of
change orders in the manner provided elsewhere in the Contract Documents.
FINAL INSPECTION -NOTICE OF COMPLETION
When the work is ready for final inspection CITY will cause the work to be
inspected and subject to such tests as seem to be required for the purpose of determining if
the work is complete in every respect.
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Upon acceptance of the work the CITY shall issue a Notice of Acceptance to the
Contractor and a Notice of Completion will be recorded.
As between the parties, the recordation of the Notice of Completion, unless
recorded because of a cessation of labor, means only that the time for final payment and the
commencement of the guarantee period begins.
GUARANTEE
The Contractor shall warrant and guarantee all materials, surfaces, and work
performed for a period of five (5) years from the date of Notice of Completion and that the
completed system is free froin all defects due to faulty materials or workmanship. The
Contractor shall promptly make such corrections as may be necessary by reason of such
defects including the repairs of any damage to other parts of the system resulting from such
defects.
The CITY will give notice of observed defects with reasonable promptness. In the
event that the Contractor should fail to make such repairs, adjustments, or other work that
may be made necessary by such defects, the CITY may do so and charge the Contractor the
cost thereby incurred. The Performance Bond shall remain in full force and effect through
the guarantee period.
CITY'S RIGHT TO STOP WORK OR TERMINATE THE CONTRACT
CTTY may, without prejudice to such other right,remedy or relief it may be entitled
to, by 10 day's notice to Contractor, terminate the employment of Contractor and its right to
proceed, if:
1. Contractor shall be adjudged bankrupt or malce an assignment for the
benefit of creditors.
2. A receiver or liquidator is appointed for Contractor or any of its property.
3. Contractor shall refuse or fail after Notice of Warning from CITY by City's
Representative to supply sufficient properly skilled workmen or suitable
materials.
4. Contractor fails to perform the work with such diligence as will insure its
completion within the stipulated time period.
5. Contractor fails to make payments to persons supplying labor or materials
for the work.
6. Contractor does not comply with applicable law or instructions of City's
Representative.
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7. Contractor is otherwise guilty of a substantial violation of any provision of
the Contract Documents.
City's right to terminate may be for the entire work, or at City's option, as to any
portion thereof as to which delay shall have occurred or breach or noncompliance relates,
and may thereupon take possession of the affected work and complete the work by
Contract or otherwise, as CITY deems expedient. In such case Contractor shall not be
entitled to receive any further payment until the work is finished. If the unpaid balance
shall exceed the expense of completion, and other damage, expense or loss of CITY
occasioned by Contractor's failure to properly perform, such excess shall be paid by
Contractor. If such expense and damage exceeds the unpaid balance, Contractor is liable to
CITY for the excess. If CITY elects to proceed under this Section, it may take possession
of and utilize in completing the work such materials, supplies, plant and equipment on site
which may be necessary or convenient for the purpose of completing the work. CITY is
expressly granted the right - acting via an City's Representative or otherwise -to operate
equipment and machinery on site for the purpose of determining whether it has a basis for
proceeding under this section.
Decision by CITY not to proceed under this Section does not constitute a waiver by
CITY of any right it might from time to time have against Contractor under the Contract
Documents.
FINAL PAYMENT
Within thirty-five (35) days after the Notice of completion is recorded the City will
pay to the contractor all
remaining funds. Representative will make a proposed final estimate in writing of
the quantities of work done under the contract and the value of such work and will submit
such estimate to Contractor. Within thirty-five (35) days thereafter Contractor shall submit
to City's Representative his written approval of said proposed final estimate or written
statement of all claims, which he has for additional compensation claimed to be due under
the contract.
On Contractor's approval or if he files no claims within said period of thirty-five
(35) days, City's Representative will issue a final written estimate as submitted to
Contractor and CITY shall pay the sum found due thereon after deducting all prior
payments and all amounts to be kept and retained under the provisions of the contract,
City's Representative shall then consider and investigate Contractor`s claims and shall
make such revisions in the said estimate as he may find to be due, and shall then make and
issue his written estimate.
CITY will pay the amount so found due after deducting all previous payments and
amount to be retained under the contract.
All prior partial estimates and payments shall be subject to correction in the final
estimate and payment.
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The final estimate shall be conclusive and binding against both parties to the
contract on all questions relating to the performance of the contract and the amount of
work done thereunder and compensation therefore, except in the case of gross error.
Acceptance of final payment constitutes a release of CITY by Contractor from all claims
relating to undisputed contract amounts.
Any payment, however, final or otherwise, shall not release the Contractor or his
sureties from any obligations under the Contract Documents or the Performance Bond and
Payment Bonds.
CLAIMS
The Contractor will indemnify and save the CITY or the City's agents harmless
from all claims growing out of the lawful demand of subcontractors, laborers, workmen,
mechanics, materialmen, and furnishers of machinery and parts thereof, equipment tools,
and supplies, incurred in the furtherance of the performance of the work. The Contractor
shall, at the City's request, furnish satisfactory evidence that all obligations of the nature
designated above have been paid, discharged, or waived. If the Contractor fails to do so
the CITY may, after having notified the Contractor, either pay unpaid bills or withhold
from the Contractor's unpaid compensation a sum of money deemed reasonable and
suf�cient to pay any and all such lawful claims until satisfactory evidence is furnished that
all liabilities have been fully discharged whereupon payment to the Contractor shall be
resumed, in accordance with the terms of the Contract Documents, but in no event shall the
provisions of this sentence be constructed to impose any obligations upon the CITY to
either the Contractor his Surety, or any third party. In paying any unpaid bills of the
Contractor, any payment so made by the CITY shall be considered as a payment made
under the Contract Documents by the CITY to the Contractor and the CITY shall not be
liable to the Contractor for any such payment made in good faith.
DISPUTE RE50LUTION
Any separate demand by the Contractor for payment of moneys or damages arising
from work done by or on behalf of the Contractor pursuant to this contract, payment of
which is not otherwise expressly required by the contract or any separate demand by the
Contractor the amount of which is disputed by the CITY, such demand being in an amount
of$375,000 or less, shall be resolved pursuant to Sections 20104, etseq• of the California
Public Contract Code, as may be amended. These sections are summarized as follows:
A) For any claim, as defined in Section 20104 of the California Public Contract
Code, by the Contractor of an amount less than $50,000, the CITY will
respond in writing within forty-five (45) days of receipt of the claim, or may
request in writing within thirty (30) days of receipt of the claim any
additional documentation supporting the claim or related to any defenses the
CITY may have against such claim. The City's written response to the
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claim, as further documented, will be submitted to the Contractor within
fifteen (15) days from receipt of the further documentation or within a
period of time no greater than that taken by the Contractor in producing the
additional documentation,whichever is greater.
B) For any claim, as defined in Section 20104 of the California Public Code, by
the Contractor for an amount between$50,000 and$375,000, the CTTY will
respond in writing within sixty (60) days of receipt of the claim, or may
request in writing within thirty (30) days of receipt of the claim any
additional documentation supporting the claim or related to any defenses
which the CITY may have against such claim. The City's written response
to the claim, as further documented, will be submitted to the Contractor
within thirty (30) days from receipt of the further documentation or within a
period of time no greater than that taken by the Contractor in producing the
additional documentation, whichever is greater.
C) If the Contractor disputes the City's written response, or the CITY fails to
respond within the time prescribed, the Contractor may notify the CITY, in
writing, either within fifteen (15) days of receipt of the City's response or
within fifteen(15)days of the City's failure to respond within the statutorily
prescribed time, and demand and informal conference to meet and confer
for settlement of the issues in dispute. Upon demand, the CITY shall
schedule a meet and confer conference within thirty(30) days for settlement
of the dispute.
D) If the meet and confer process does not produce a settlement agreement, the
Contractor may file a claim pursuant to Government Code Section 900, et
se�c., The period of time within which to file such a claim shall be as defined
in Section 20104.2(e).
E) The procedures for any civil action brought by the parties resolve such
claims shall be those set forth in Section 20104.4 of the California Public
Contract Code, a summary of which is set for below:
1) Within sixty(60)days, but no earlier than thirty(30)days, following
the filing of responsive pleading, unless waived by mutual
stipulation of both parties, the court shall submit the matter to non-
binding mediation. The mediation process shall commence within
thirty (30) days of the submittal, and shall be concluded within
fifteen (15) days from the commencement of the mediation process,
except as may be otherwise required by Section 20104.4 of the
Public Contract Code.
2) If the matter remains in dispute after mediation, the case shall be
submitted to judicial arbitration. An arbitrator shall be appointed and
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proceedings shall be conducted pursuant to provisions of Section
20104.4 of the Public Contract Code.
3) If the party appealing an arbitration award does not obtain a more
favorable judgment that party shall, in addition to the payment of costs
and fees, also pay the attorneys' fees on appeal of the other party.
F) In any suit filed pursuant to these provisions, the CITY shall pay interest at
the legal rate on any arbitration award or judgment in favor of the
Contractor. The interest shall begin to accrue on the date the suit is filed in
a court of law.
G) Except as set forth herein, or as otherwise provided under State law, it is
understood and agreed by the parties that all rights any of them may have to
arbitration for the settling of disputes, claims, and other matters arising out
of or relating to this contract or the breach thereof are hereby specifically
waived by all of them.
DOCUMENTS OF CONTRACTOR
Upon demand, Contractor shall make available to CITY all documents in its
possession relevant to the work accomplished or to be accomplished or any demand or
claim of the Contractor as to CITY. This includes copies of documents sent by Contractor
or others in its possession. Contractor shall further make available to CITY, conformed
copies of all documents submitted to the sureties who executed the Bid Bond, Faithful
Performance Bond or Labor and Materials Bond for the indemnification made to such
surety by others for such purpose. Contractor shall maintain in its possession all
documents relative to the work for three years after Notice of Completion.
PROJECT SAFETY AND RESPONSIBILITY OF CONTRACTOR TO ACT IN AN
EMERGENCY
The Contractor shall take all responsible precautions for the safety of, and shall
provide all reasonable protection to prevent damage, injury or loss to:
1. All employees on the worksite and all other persons who may be affected
thereby;
2. All the work and all materials and equipment to be incorporated therein,
whether in storage on or off the site, under the care, custody or control of
the Contractor or any of his Subcontractor or Sub-subcontractors;
3. Other property at the site or adjacent thereto, including trees, shrubs, lawns,
irrigation, walkways, pavements, roadways, structures and utilities not
designated for removal, relocation or replacement in the course of the
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project; and
4. Vehicular and pedestrian traffic on or near the project site. This
requirement shall apply continuously and not be limited to normal working
hours.
The Contractor is responsible for maintaining full compliance with all CAL OSHA
standards and regulations while performing the work under this contract.
The Contractor acknowledges and agrees to be defined as the "controlling
employer" at the work site. As the controlling employer, the Contractor shall be
responsible for taking reasonable steps to ensure that all subcontractors, performing work
under this contract, also meet all CAL OSHA standards and regulations.
The Contractor shall be responsible for all fines, penalties, judgments or work -
stoppages that result from CAL OSHA action.
The Contractor shall give all notices and comply with all applicable laws,
ordinances, rules, regulations and lawful orders of any public authority bearing on the
safety of persons or property or their protection from damage, injury or loss.
The Contractor shall erect and maintain, as required by existing conditions and
progress of the work, all reasonable safeguards for safety and protection, including posting
danger signs and other warnings against hazards, promulgating safety regulations and
notifying City's and users of adjacent utilities.
Full compensation for the work involved in carrying out the safety precautions shall
be considered as included in the various items of work and no additional payment will be
made therefore.
In case of an emergency, which threatens loss or injury to property or life,
Contractor shall act without previous instructions as the situation may warrant. Contractor
shall notify City's Representative immediately thereafter. Any compensation for
emergency work claimed by Contractor, together with substantiating documentation, shall
be submitted to CITY via City's Representative.
SUPERVISION BY CONTRACTOR
The Contractor will supervise and direct the work. He will be solely responsible for
the means, methods, techniques, sequences and procedures of construction. The
Contractor will employ and maintain on the work site a qualified supervisor or
superintendent who shall have been designated in writing by the Contractor as the
Contractor's representative at the site. The supervisor shall have full authority to act on
behalf of the Contractor and all communications given to the supervisor shall be as binding
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as if given to the Contractor. The supervisor shall be present on the work site at all times
as required to perform adequate supervision and coordination of the work. Contractor shall
not change job supervisor without written approval of City's Representative.
CHANGES IN THE WORK
The CITY may at any time, as the need arises,order changes within the scope of the
work without invalidating the Agreement. If such changes increase or decrease the amount
due under the Contract Documents, or in the time required for performance of the work, an
equitable adjustment shall be authorized by Change Order.
CHANGES IN CONTRACT PRICE
The Contract Price may be changed only by a Change Order. The value of any
work covered by a Change Order or of any claim for the increase or decrease in the
Contract Price shall be determined by one or more of the following methods in the order of
precedence listed below:
1. Unit prices previously approved.
2. An agreed lump sum.
3. The actual cost for labor, direct overhead, materials, supplies, equipment,
and other services necessary to complete the work. In addition there shall
be added an amount to be agreed upon but not to exceed fifteen(15) percent
of the actual cost of the work to cover the cost of general overhead and
profit.
INDENINITY AGREEMENT/HOLD HARMLESS
Except for gross negligence or willful misconduct of an Indemnity, the Contractor
hereby assumes liability for and agrees to defend, indemnify, protect and hold harmless the
City and its officers, agents, and employees, from and against all claims, charges, damages,
demands, actions, proceeding, losses, stop notices, costs, expenses (including counsel
fees), judgments, civil fines and penalties, liabilities of any kind or nature whatsoever,
which may arise out of or encountered in connection with this Agreement or the
performance of the Work including, but not limited to, death of or bodily or personal injury
to persons or damage to property, including property owned by or under the care and
custody of the City, and for civil fines and penalties, that may arise from or be caused, in
whole or in part, by any negligent or other act or omission of Contractor, its off'icers,
agents, employees,or Subcontractors including, but not limited to, liability arising from:
1. Any dangerous, hazardous, unsafe or defective condition of, in or on the
premises, of any nature whatsoever, which may exist by reason of any act,
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omission, neglect, or any use or occupation of the premises by the
Contractor, its officers, agents, employees,or subcontractors;
2. Any operation conducted upon or any use or occupation of the premises by
Contractor, its officers, agents, employees, or Subcontractors under or
pursuant to the provisions of this contract or otherwise;
3. Any act, omission or negligence of Contractor, its officers, agents,
employees or Subcontractors;
4. Any failure of Contractor, its officers, agents or employees to comply with
any of the terms or conditions of this Contract or any applicable federal,
state regional, or municipal law ordinance,rule or regulation.
The Contractor also agrees to indemnify City and pay for all damage or loss
suffered by City including, but not limited to damage or loss of City property, to the extent
not insured by City and loss of City revenue from any source, caused by or arising out of
the conditions, operations, uses, occupations, acts, omissions or negligence referred to in
Sub-sections(1), (2), (3), and(4) above.
Contractor's obligations under this Section apply regardless of whether or not such
claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense,
judgment, civil fine or penalty, or liability was caused in part or contributed to by an
Indemnity. However, without affecting the rights of the City under and provision of this
agreement, Contractor shall not by required to indemnify and hold harmless City for
liability attributable to the active negligence of City, provided such active negligence is
determined by agreement between the parties or by the findings of a court of competent
jurisdiction In instances where City is shown to have been actively negligent and where
City's active negligence accounts for only a percentage of the liability involved, the
obligation of the Contractor will be for that entire portion or percentage of liability not
attributable to the active negligence of City.
Contractor agrees to obtain executed indemnity agreements with provisions identical
to those set forth herein this section from each and every subcontractor or any other person
or entity involved by, for, with, or on behalf of Contractor in the performance of this
agreement. In the event that Contractor fails to obtain such indemnity obligations from
others as required here, Contractor agrees to by fully responsibly according to the terms of
this section.
Failure of City to monitor compliance with these requirements imposes no
additional obligations on City and will in no way act as a waiver of any rights hereunder.
This obligation to indemnify and defend City as set forth here is binding on the successors,
assigns or heirs of Contractor and shall survive the termination of this agreement or this
section.
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T'his Indemnity shall survive termination of the Agreement or Final Payment
hereunder. This Indemnity is in addition to any other rights or remedies that the
Indemnities may have under the law or under any other Contract Documents or
Agreements. In the event of any claim or demand made against any party which is entitled
to be indemni�ed hereunder, City may, in its sole discretion, reserve, retain or apply any
monies to the Contractor under this Agreement for the purpose of resolving such claims;
provided, however, City may release such funds if the Contractor provides City with
reasonable assurance of protection of the Indemnities' interests. City shall, in its sole
discretion,determining whether such assurances are reasonable.
LIABILITY INSURANCE
The Contractor shall procure and maintain for the duration of the contract
commercial general liability insurance against claims for injuries to persons or damages to
property, which may arise from or in connection with the performance of the work
hereunder by the Contractor, his agents, representatives, employees or subcontractors. The
cost of such insurance shall be borne by the Contractor. The Contractor shall maintain
general commercial liability of not less than One Million Dollars ($1,000,000.00) per
occurrence for bodily injury, personal injury and property damage, and three-million
dollars ($3,000,000.00) in general aggregate. Any deductibles or self-insured retentions
must be declared to the City and approved by the Risk Manager.
"The City, its Redevelopment Agency, its officials, employees, agents, and volunteers are
to be covered as additionally insureds" as respects:
l. Commercial General Liability Insurance using Insurance Services Office
"Commercial General Liability" policy form CG 00 O1 or the exact
equivalent. Defense costs must be paid in addition to limits. There shall be
no cross liability exclusion for claims or suits by one insured against
another. Limits shall by not less than $1,000,000 per occurrence for all
covered losses and no less than$3,000,000 general aggregate.
2. Workers Compensation on a state-approved policy form providing
statutory benefits as required by law with employer's liability limits not less
than$1,000,000 per accident for all covered losses.
3. Business Auto Coverage on an ISO Business Auto Coverage form CA 00
O1 06 92 including symbol 1 (Any Auto) or the exact equivalent. Limits
shall be no less than $1,000>000 per accident, combined single limit. If
Contractor owns no vehicles, this requirement may be satisfied by a non-
owned auto endorsement to the general liability policy described above. If
Contractor or Contractor's employees will use personal autos in any way on
this project, Contractor shall provide evidence of personal auto liability
coverage for each such person.
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4. Course of Construction insurance shall provide "all risk" coverage for the
completed value of the project. Policies shall contain the following
provisions: (1) City shall be named as loss payee; and (2) the insurer shall
waive all rights of recovery against the City.
Insurance procured pursuant to these requirements shall be written by insurers that
are admitted carriers in the state of California and with an A.M. Best rating of A- or better
and a minimum financial size VII.
The contractor also agrees to the following:
1. Contractor agrees to endorse third party general liability coverage required
here to include as additional insureds City, its Redevelopment Agency, its
officials, employees and agents. Contractor also agrees to require the same
provision of all subcontractors,joint ventures or other parties engaged by or
on behalf of Contractor in relation to this agreement.
2. Contractor agrees to provide evidence of the insurance required herein,
satisfactory to City, consisting of: a) certificate(s) of insurance evidencing
all of the cover ages required and b) an additional insured endorsement to
Contractor's general liability policy using Insurance Services Office form
CG 20 10 11 85. Contractor agrees, upon request by City to provide
complete, certified copies of any policies required by this section, within 10
days of such request. Any actual or alleged failure on the part of City or any
other additional insured under these requirements to obtain proof of
insurance required under this Agreement in no way waives any right or
remedy of City or any additional insured, in this or any other regard.
3. All insurance coverage and limits provided by Contractor and available or
applicable to this agreement are intended to apply to the full extent of the
policies. Nothing contained in this Agreement limits the application of such
insurance coverage.
4. Contractor agrees to endorse insurance policies provided pursuant to these
requirements, to provide notice to City 60 days prior to cancellation of such
liability coverage or any material alteration or non-renewal of any such
coverage. Contractor shall assure that this provision also applies to any
subcontractors,joint ventures or any other party engaged by or on behalf of
Contractor in relation to this agreement. Certificate(s) are to reflect that the
insurer will provide 60 days notice to City of any cancellation of coverage.
Contractor agrees to require its insurer or agent to modify such certificates
to delete any exculpatory wording stating that failure of the insurer to mail
written notice of cancellation imposes no obligation, or that any party will
"endeavor" (as opposed to being required) to comply with the requirements
if the certificate.
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5. It is acknowledged by the parties of this agreement that all insurance
coverage required to be provided by Contractor of any subcontractor, is
intended to apply on a primary non-contributing basis in relation to any
other insurance or self insurance available to City. Policies shall contain or
be endorsed to contain such provisions.
6. All coverage types and limits required are subject to approval, modification
and additional requirements by the City, as the need arises, Contractor shall
not make any reductions in scope of coverage (e.g. elimination of con-
tractual liability or reduction of discovery period) that may affect City's
protection without City's prior written consent.
7. No liability policy shall contain any provision or definition that would serve
to eliminate so-called "third party action over" claims, including any
exclusion for bodily injury to an employee of the insured or of any
contractor or subcontractor.
8. No liability inst�rance coverage provided to comply with this Agreement
shall prohibit Contractor, or Contractor's employees, or agents, from
waiving the right of subrogation prior to a loss. Contractor waives its right
of subrogation against City.
9. All insurance coverage maintained or procured pursuant to this Agreement
shall be endorsed to delete the subrogation condition as to City, or to
specifically allow Contractor or others providing insurance herein to waive
subrogation prior to a loss. This endorsement shall be obtained regardless
of existing policy wording that may appear to allow such waivers.
10. In the event any policy of insurance required under Agreement does not
comply with these requirements or is cancelled and not replaced, City has
the right but not the duty to obtain the insurance it deems necessary and any
premium paid by City will be promptly reimbursed by Contractor or City
will withhold amounts sufficient to pay premium from contractor payments.
11. Contractor acknowledges and agrees that any actual or alleged failure on the
part of City to inform Contractor of non-compliance with any requirement
imposes no additional obligations on City nor does it waive any rights
hereunder.
12. Contractor agrees to require all subcontractors or other parties hired for his
project to provide the same insurance as required of Contractor unless
otherwise agreed to by City. The subcontractor's general liability insurance
shall add as additional insured all parties to this Agreement using Insurance
Services Office form CG 20 10 44 85.
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Contractor agrees to obtain certificates evidencing such coverage and make
reasonable efforts to ensure that such coverage is provided as required here.
13. For purposes of insurance coverage only, this Agreement will be deemed to
have been executed immediately upon any party hereto taking any steps that
can by considered to be in furtherance of ar toward performance of this
Agreement.
14. The provisions of any workers' compensation or similar act will not limit
the obligations of Contractor under this Agreement. Contractor expressly
agrees not to use any statutory immunity defenses under such laws with
respect to City, its Redevelopment Agency, its employees, officials and
agents.
15. The insurance requirements set forth in this Section are intended to be
separate and distinct from any other provision in this Agreement and are
intended to by interpreted as such.
16. Unless otherwise approved by City, insurance provided pursuant to these
requirements shall be by insures authorized to do business in California and
with an A.M. Best rating of A- or better and a minimum financial size of
VII.
17. Contractor agrees to provide immediate notice to City of any claim or loss
against Contractor arising out of the work performed under this agreement.
City assumes no obligation or liability by such notice, but has the right (but
not the duty) to monitor the handling of any such clam or claims if they are
likely to involve the City.
18. Contractor agrees to have its general liability coverage endorsed so that all
coverage limits required by this agreement are available separately for each
and every location at which Contractor conducts operations of any type on
behalf of City. Contractor warrants that these limits will not be reduced
except by losses attributable to those specific locations and not by losses
from any other operations of Contractor.
TERMINATION OF CONTRACT BY CONTRACTOR
The Contractor may terminate the contract upon 10 calendar days written notice to
the CTI'Y, whenever (1) the entire work has been suspended in accordance with these
provisions for 60 consecutive calendar days through no fault or negligence of the
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Contractor, and notice to resume work or to terminate the contract has not been received
from the CITY within this time period; or (2) the CITY should fail to pay the Contractor
any substantial sum due him in accordance with the terms of the contract and within the
time limits prescribed. In the event of such termination, the Contractor shall have no
claims against the CITY except for those claims specifically enumerated in these
provisions and determined in accordance thereof.
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