04-07-2020 - AGENDA ITEM 07 CONSIDERATION OF AGREEMENT FOR FISCAL YEAR 2019-20 RESIDENTIAL STREET REHABILITATION PROGRAM PROJECT - PROJECT NO. 20011AGENDA ITEM NO.7
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AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: April 7, 2020
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF AGREEMENT FOR FISCAL YEAR 2019-20 RESIDENTIAL
STREET REHABILITATION PROGRAM PROJECT - PROJECT NO. 20011
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Authorize the City Manager to negotiate and execute a construction services agreement with Gentry Brothers,
Inc. for $969,070.55;
2. Authorize 15% of the awarded contract amount as contingency allowance to be used, if necessary at the City
Manager's discretion, for unforeseen conditions; and
3. Authorize the City Manager to execute any amendments to the agreement.
BACKGROUND:
Adequate street maintenance is necessary to protect the original investment and to furnish maximum service to the
users. To delay maintenance work will hasten the day when an entirely new paving job will be necessary.
Maintenance work should therefore be given as much consideration by the City Council as new construction, and
the material used should be selected with the same caution as if it were intended for anew pavement. Maintenance
is a continuous process. The selected streets are based on the recommendations identified within the City's
Pavement Management Program (PMP) for Fiscal Year (FY) 2019-20. As part of the project, approximately
925,000 square feet of pavement will be constructed slurry seal, approximately 472,000 square feet of pavement
will be constructed microsurfacing, and approximately 254,000 square feet of pavement will be asphalt overlay.
Work also includes localized asphalt pothole repairs, markings and striping and related work. Streets that are
recommended to be included in the Fiscal Year (FY) 2019-20 pavement rehabilitation include:
Street Name
JFrorn
ITo
Rio De Oro Dr
11822 Rio De Oro Dr IFEnd
Of Street.
Glenn Alan Ave
IMichelle St
Heath Terrace
Hillward Ave
IMichelle St IlEnd
Of Street
Casa Grande Dr
IMichelle St
South Hills Dr
Casa Linda Dr
Hillward Ave
ISouth Hills Dr
Cameo Vista Dr
Hillward Ave
2121 Cameo Vista Dr
Cameo Vista Dr
2121 Cameo Vista Dr
ISouth Hills Dr
Casa Grande Dr
ISouth Hills Dr
Hollencrest Dr
Aroma Dr
Azusa Ave
Wildwood Street
Donna Beth Ave
Aroma Dr
ICalico Street
Serena Dr
IMontezurna Wy
End Of Street
DISCUSSION:
On March 5, 2020, staff advertised construction bid package. The following eight (8) bids were received by the
City at the Bid Opening held on March 19, 2020.
Contractor Name
Total Bid Amount
Gentry Brothers, Inc.
$969,070.55
All American Asphalt
$989,535.71
Sully -Miller Contracting Company
$1,065,000.00
Onyx Paving Company, Inc.
$1,123,000.00
R.J. Noble Company
$1,191,165.74
Copp Contracting, Inc.
$1,203,598.23
Hardy & Harper, Inc. 1
$1,260,000.00
Palp, Inc Dba Excel Paving Company IF
$1,272,744.14
Lowest Responsible Bid
Staff conducted a bid analysis including checking references, California Contractor Licensing, Department of
Industrial Relations registration, and State and Federal debarment list review for the apparent low bidder, Gentry
Brothers, Inc. Based upon staffs analysis, staff has determined that the lowest responsible bid was submitted by
Gentry Brothers, Inc. in the amount of $969,070.55. Attached is the proposed agreement to be executed with
Gentry Brothers, Inc. (Attachment No. 1).
Budget
The following is the breakdown of the construction phase budget:
Construction Contract
$969,070.55
Contingency Budget allowance authorization to staff to
$145,360.60
utilize for unforeseen conditions as necessary (15%)
Total Construction Budget
$1,114,431.15
Budget allowance for construction management, inspections,
and administration (services provided under Capital
$111,443.00
Improvement Projects Management Contract with Transtech)
Project Total I
$1,225,874.14
LEGAL REVIEW:
The City Attorney's Office has reviewed the proposed agreement and approved it as to form.
OPTIONS:
The City Council has the following options:
1. Approve Staffs recommendation; or
2. Provide alternative direction.
ENVIRONMENTAL REVIEW:
The proposed Project is a project subject to CEQA. Staff has reviewed the proposed project and has determined that
it is categorically exempt from CEQA pursuant to CEQA Guidelines Section(s) 15302: Replacement or
Reconstruction (c) as the project involves the reconstruction of existing roadways with no expansion of capacity.
Prepared by: Okan Demirci, PE, CIP Manager
Fiscal Impact
FISCAL IMPACT:
The funds available for this project is as follows:
Project No.
Funds
Account No. Amount
20011
SB-1 Funds
20011.124.7200 $1,225,874.14
Total $1,225,874.14
Attachments
Attachment No. 1 - Agreement with Gentry Brothers, Inc.
CITY COUNCIL GOALS & OBJECTIVES: Enhance the City Image and Effectiveness
Protect Public Safety
Respond to the Global COVID-19 Pandemic
ATTACHMENT NO. 1
CITY OF WEST COVINA
CONSTRUCTION SERVICES AGREEMENT FOR
PROJECT NO.20011
FY 2019-20 RESIDENTIAL STREETS REHABILITATION PROGRAM PROJECT
THIS CONSTRUCTION SERVICES AGREEMENT ("Agreement"), is made and entered
into this 7th day of April, 2020 ("Effective Date") by and between the CITY OF WEST COVINA, a
municipal corporation ("City"), and GENTRY BROTHERS, INC., a California corporation
("Contractor").
RECITALS
A. City requires construction services for the FY 2019-20 Residential Streets
Rehabilitation Program Project, Project No. 20011 ("Project"), that meet the requirements as shown
in the project specifications and this Agreement.
B. Contractor has submitted a bid to perform the construction services for the Project and
has represented to City that Contractor is qualified to perform said services.
C. City and Contractor desire to enter into this Agreement for the Project on the terms
and conditions set forth herein.
NOW, THEREFORE, based on the foregoing Recitals and for good and valuable
consideration, the receipt and sufficiency of which is acknowledged by both parties, City and
Contractor hereby agree as follows:
1.0 SERVICES OF CONTRACTOR
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement,
the Contractor shall provide all work described in the Contract Documents, as further described
herein, which services may be refereed to herein as the "services" or "work". As a material
inducement to the City entering into this Agreement, Contractor represents and warrants that
Contractor is a provider of first class work and services and Contractor is experienced in performing
the work and services contemplated herein and, in light of such status and experience, Contractor
covenants that it shall follow the highest professional standards in performing the work and services
required hereunder and that all materials will be of good quality and fit for the purpose intended.
1.2 Documents Included in Contract. The complete Agreement consists of:
(a) This Agreement;
(b) Notice to Contractors and Instructions to Bidders, Bid Documents and
Contract Documents (collectively, "Bid Documents"), incorporated by this
reference as if fully set forth herein;
(c) Contractor's Proposal, attached hereto as Exhibit A and incorporated herein;
(d) Certificates of Insurance, attached hereto as Exhibit B and incorporated herein;
(e) Bonds, attached hereto as Exhibit C and incorporated herein;
(fl The Standard Specifications and Standard Specifications for Public Works
Project No. 20011
Construction, as detailed in Section 19-1 of the West Covina Municipal Code,
incorporated by this reference as if fully set forth herein; and
(g) All exhibits and attachments to the foregoing documents.
The documents comprising the complete Agreement may be referred to in this Agreement as
the "Contract Documents." In the event of an inconsistency between any of the terms in this
Agreement and any of the documents referenced above, this Agreement shall govern.
1.3 Compliance with Law. All services rendered hereunder shall be provided in
accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any
Federal, State or local governmental agency having jurisdiction in effect at the time the work is
performed.
1.4 Licenses, Permits, Fees, and Assessments. Contractor shall obtain at its sole cost
and expense such licenses, permits and approvals as may be required by law for the performance of
the services required by this Agreement, including a business license from the City. Contractor shall
have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and
interest, which may be imposed by law and arise from or are necessary for the Contractor's
performance of the services required by this Agreement, and shall indemnify, defend and hold
harmless City against any such fees, assessments, taxes penalties or interest levied, assessed or
imposed against City hereunder. Contractor shall be responsible for all subcontractors' compliance
with this Section.
1.5 Familiarity with Work. By executing this Agreement, Contractor warrants that
Contractor (a) has thoroughly investigated and considered the Scope of Services to be performed, (b)
has carefully considered how the services should be performed, and (c) fully understands the facilities,
difficulties and restrictions attending performance of the services under this Agreement. If the services
involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is
or will be fully acquainted with the conditions there existing, prior to commencement of services
hereunder. Should the Contractor discover any latent or unknown conditions, which will materially
affect the performance of the services hereunder, Contractor shall immediately inform the City of
such fact and shall not proceed except at Contractor's risk until written instructions are received from
the Contract Officer.
1.6 Care of Work. The Contractor shall adopt reasonable methods during the life of this
Agreement to furnish continuous protection to the work, and the equipment, materials, papers,
documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be
responsible for all such damages, to persons or property, until acceptance of the work by City, except
such losses or damages as may be caused by City's own active negligence.
1.7 Further Responsibilities of Parties. Both parties agree to use reasonable care and
diligence to perform their respective obligations under this Agreement. Both parties agree to act in
good faith to execute all instruments, prepare all documents and take all actions as may be reasonably
necessary to carry out the purposes of this Agreement. Contractor shall require all subcontractors to
comply with the provisions of this Agreement.
1.8 Additional Services. City shall have the right at any time during the performance of
the services, without invalidating this Agreement, to order extra work beyond that specified in the
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Project No. 20011
Scope of Services or make changes by altering, adding to or deducting from said work. No such extra
work may be undertaken unless a written change order is first given by the Contract Officer to the
Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to
perform this Agreement, which said adjustments are subject to the written approval of the Contractor.
All change orders are subject to the requirements of West Covina Municipal Code Section 19-302. It
is expressly understood by Contractor that the provisions of this Section shall not apply to services
specifically set forth in the Scope of Services or reasonably contemplated therein. Contractor hereby
acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services
may be more costly or time consuming than Contractor anticipates and that Contractor shall not be
entitled to additional compensation therefor.
1.9 Prevailing Wages Laws. This Project requires the payment of prevailing wages
under California law. In accordance with Labor Code Section 1770, et seq., the Director of the
Department of Industrial Relations of the State of California has ascertained a general prevailing rate
of wages which is the minimum amount which shall be paid to all workers employed to perform the
work pursuant to this Agreement. A copy of the general prevailing wage rate determination is on file
in the Office of the City Clerk and is hereby incorporated in this Agreement as if fully set forth herein.
In accordance with the provisions of Labor Code Section 1810, et seq., eight (8) hours is the legal
working day. Contractor must forfeit to the City Twenty -Five Dollars ($25.00) a day for each worker
who works in excess of the minimum working hours for which Contractor does not pay overtime.
Contractor is required to post a copy of such wage rates at all times at the project site. The statutory
penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be
enforced. Contractor shall also comply with State law requirements to maintain payroll records and
shall provide for certified records and inspection of records as required by California Labor Code
Section 1770, et seq., including Section 1776. Contractor shall comply with all statutory requirements
relating to the employment of apprentices.
2.0 COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to this Agreement, the Contractor
shall be compensated as specified herein, but not exceeding the maximum contract amount of Nine
Hundred Sixty -Nine Thousand Seventy Dollars and Fifty -Five Cents ($969,070.55) (herein "Contract
Sum"), except as provided in Section 1.8 (Additional Services). The Contract Sum shall include the
attendance of Contractor at all project meetings reasonably deemed necessary by the City; Contractor
shall not be entitled to any additional compensation for attending said meetings.
2.2 Progress Payments. Prior to the first day of the month, during the progress of the
work, commencing on the day and month specified in the Agreement, Contractor shall submit to
the Contract Officer a complete itemized statement of all labor and materials incorporated into the
work during the preceding month and the portion of the Contract Sum applicable thereto. Upon
approval in writing by the Contract Officer, payment shall be made within thirty (30) days. City
shall pay Contractor a sum based upon ninety five percent (95%) of the Contract Sum
apportionment of the labor and materials incorporated into the work under the Agreement during
the month covered by said statement. The remaining five percent (5%) of the Contract Sum shall
be retained as performance security as detailed in Section 2.3 (Retention of Funds).
2.3 Retention of Funds. Progress payments shall be made in accordance with the
provisions of Section 2.2 (Progress Payments) of this Agreement. In accordance with said section,
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Project No. 20011
City will retain five percent (5%) of the Contract Sum apportionment from each progress payment
as performance security to be paid to the Contractor within sixty (60) days after final acceptance of
the work by the City Council, after Contractor furnishes City with a release of all undisputed
contract amounts if required by City. If there are any claims specifically excluded by Contractor
from the operation of the release, the City may retain proceeds as authorized by Public Contract
Code Section 7107 of up to 150% of the amount in dispute. City's failure to deduct or withhold
shall not affect Contractor's obligations hereunder. To the extent consistent with Public Contract
Code Section 22300, Contractor may request and City shall make payment of retentions earned
directly to an escrow agent at the expense of Contractor, and may direct the investment of the
payments into securities and Contractor shall receive the interest earned on the investments upon
the same terms provided for in Public Contract Code Section 22300 for securities deposited by
Contractor. Upon satisfactory completion of this Agreement, Contractor shall receive from the
escrow agent all securities, interest, and payments received by the escrow agent from the City.
3.0 PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this Agreement.
3.2 Schedule of Performance. Contractor shall commence the services pursuant to this
Agreement upon receipt of a written notice to proceed and shall complete all services within thirty
(30) working days. Contractor shall submit for the Contract Officer's approval its proposed
Construction Schedule. Contractor shall perform the services in accordance with the approved
Construction Schedule. When requested by the Contractor, extensions to the time period(s) specified
in the Construction Schedule may be approved in writing by the Contract Officer.
33 Force Majeure. The time period(s) specified in the Construction Schedule for
performance of the services rendered pursuant to this Agreement shall be extended to the extent
caused by delays due to unforeseeable causes beyond the control and without the fault or negligence
of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe
weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes,
wars, litigation, and/or acts of any governmental agency other than the City, if the Contractor within
ten (10) days of the commencement of such delay notifies the Contract Officer in writing of the
causes for the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend
the time for performing the services for the period of the enforced delay when and if in the judgment
of the Contract Officer such delay is justified. The Contract Officer's determination shall be final and
conclusive upon the parties to this Agreement. Contractor shall not be entitled to any damages or
increase in compensation due to force majeure.
3A Term. Unless earlier terminated as set forth herein, this Agreement shall continue in
full fore and effect until final approval and acceptance of the project by the City.
4.0 COORDINATION OF WORK
4.1 Representative of Contractor. The following principal(s) of Contractor are hereby
designated as being the principal(s) and representative(s) of Contractor authorized to act in its behalf
with respect to the work specified herein and make all decisions in connection therewith:
Wayne Gentry, Secretary/Treasurer
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Project No. 20011
It is expressly understood that the experience, knowledge, capability and reputation of the
foregoing principal(s) were a substantial inducement for City to enter into this Agreement. Therefore,
the foregoing principal(s) shall be responsible during the term of this Agreement for directing all
activities of Contractor and devoting sufficient time to personally supervise the services hereunder.
For purposes of this Agreement, the foregoing principal(s) may not be replaced nor may their
responsibilities be substantially reduced by Contractor without the express written approval of City.
4.2 Contract Officer. The Contract Officer shall be such person as may be designated by
the City Manager or City Engineer of City. The Contractor shall keep the Contract Officer informed
of Contractor's progress on the services. The Contractor shall refer any decisions which must be made
by City to the Contract Officer. Unless otherwise specified herein or in the City's Municipal Code,
any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract
Officer shall have authority to sign all documents on behalf of the City required by this Agreement, to
the extent permitted by the City's Municipal Code.
4.3 Prohibition Against Assignment. The experience, knowledge, capability and
reputation of Contractor, its principals and employees were a substantial inducement for the City to
enter into this Agreement. Neither this Agreement nor any interest herein may be transferred,
assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the
benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted
hereunder shall include the transfer to any person or group of persons acting in concert of more than
twenty-five percent (25%) of the present ownership and/or control of Contractor, taking all transfers
into account on a cumulative basis. In the event of any such unapproved transfer, including any
bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the
Contractor or any surety of Contractor of any liability hereunder without the City's express consent.
4.4 Independent Contractor. Neither the City nor any of its employees shall have any
control over the manner, mode or means by which Contractor, its subcontractors, agents or
employees, performs the services required herein, except as otherwise set forth herein. City shall have
no voice in the selection, discharge, supervision or control of Contractor's employees, subcontractors,
servants, representatives or agents, or in fixing their number, compensation or hours of service.
Contractor shall perform all services required herein as an independent contractor of City and shall
remain at all times as to City a wholly independent contractor with only such obligations as are
consistent with that role. Contractor shall not at any time or in any manner represent that it or any of
its subcontractors, agents or employees are agents or employees of City. City shall not in any way or
for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a
joint venture or a member of any joint enterprise with Contractor.
4.5 Identity of Persons Performing Work. Contractor represents that it employs or will
employ at its own expense all personnel required for the satisfactory performance of any and all tasks
and services set forth herein. Contractor represents that the tasks and services required herein will be
performed by Contractor or under its direct supervision, and that all personnel engaged in such work
shall be fully qualified and shall be authorized and permitted under applicable State and local law to
perform such tasks and services.
4.6 Utility Relocation. City, and not Contractor, is responsible for removal, relocation, or
protection of existing main or trunkline utilities but only to the extent such utilities were not identified
Rev.03-2020
Project No. 20011
in the invitation for bids or specifications. Where the specifications call for the Contractor to remove,
relocate, reconstruct or protect such lines, all such work shall be deemed included in the Contract
Sum. Contractor having been presented with a reasonable basis to suspect that any previously
unidentified main or trtmkline may need to be removed, relocated or protected in place, Contractor
shall immediately notify City and the affected utility company in writing of such belief, and the basis
therefor, and Contractor shall thereafter work with the City and the utility company to coordinate such
removal, relocation or protection. City shall reimburse Contractor for its reasonable costs incur -red in
locating and repairing damage not caused by Contractor, and removing or relocating such unidentified
utility facilities, including equipment idled during such work. Contractor shall not be assessed
liquidated damages for delays which meet both of the following requirements: (i) the delays occurred
after Contractor gave City the written notice required by this Section; and (ii) the delays were caused
by the removal, protection, or relocation of such unidentified utility facilities. Nothing herein shall be
deemed to prevent the City from seeking reimbursement of any such costs from the affected utility
company.
4.7 Trenches or Excavations. Pursuant to Public Contract Code Section 7104, if the
work included in this Agreement requires excavations more than four (4) feet in depth, the
following shall apply:
(a) Contractor shall promptly, and before the following conditions are disturbed, notify
City, in writing, of any: (1) material that Contractor believes may be material that is hazardous
waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to
a Class I, Class II, or Class III disposal site in accordance with provisions of existing law;
(2) subsurface or latent physical conditions at the site different from those indicated; or (3)
unknown physical conditions at the site of any unusual nature, different materially from those
ordinarily encountered and generally recognized as inherent in work of the character provided for
in the Agreement.
(b) City shall promptly investigate the conditions, and if it finds that the conditions do
materially so differ, or do involve hazardous waste, and cause a decrease or increase in
Contractor's cost of, or the time required for, performance of any part of the work, shall issue a
change order per Section 1.8 (Additional Services) of this Agreement.
(c) If a dispute arises between City and Contractor whether the conditions materially
differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time
required for, performance of any part of the work, Contractor shall not be excused from any
scheduled completion date provided for by the Agreement, but shall proceed with all work to be
performed under the Agreement. Contractor shall retain any and all rights provided either by
contract or by law which pertain to the resolution of disputes and protests between the contracting
parties.
'XIS 8011" RUM y
5.1 Minimum Scope and Limits of Insurance. Contractor shall obtain, maintain, and
keep in full force and effect during the life of this Agreement all of the following minimum scope of
insurance coverages with an insurance company admitted to do business in California, with a current
A.M. Best's rating of no less than A: VII, and approved by City:
6
Rev.03-2020
Project No. 20011
(a) Broad -form commercial general liability, including premises -operations,
products/completed operations, broad form property damage, blanket contractual
liability, independent contractors, personal injury or bodily injury with a policy limit
of not less than Two Million Dollars ($2,000,000.00), combined single limits, per
occurrence. If such insurance contains a general aggregate limit, it shall apply
separately to this Agreement or shall be twice the required occurrence limit.
(b) Business automobile liability for owned vehicles, hired, and non -owned vehicles, with
a policy limit of not less than One Million Dollars ($1,000,000.00), combined single
limits, per accident for bodily injury and property damage.
(c) Workers' compensation insurance as required by the State of California, with
Statutory Limits, and Employer's Liability Insurance with a limit of no less than One
Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Contractor
agrees to waive, and to obtain endorsements from its workers' compensation insurer
waiving subrogation rights under its workers' compensation insurance policy against
the City, its officers, agents, employees, and volunteers for losses arising from work
performed by Contractor for the City and to require each of its subcontractors, if any,
to do likewise under their workers' compensation insurance policies.
By execution of this Agreement, the Contractor certifies as follows:
I am aware of, and will comply with, Section 3700 of the Labor Code, requiring every
employer to be insured against liability of Workers' Compensation or to undertake
self-insurance before commencing any of the work.
The Contractor shall also comply with Section 3800 of the Labor Code by securing,
paying for and maintaining in full force and effect for the duration of this Agreement,
complete Workers' Compensation Insurance, and shall furnish a Certificate of
Insurance to the City before execution of this Agreement by the City. The City, its
officers and employees shall not be responsible for any claims in law or equity
occasioned by failure of the Contractor to comply with this section.
(d) Builder's Risk (Course of Construction) insurance utilizing an "All Risk" (Special
Perils) coverage form, with limits equal to the completed value of the Project and no
coinsurance penalty provisions. The Builder's Risk coverage shall name the City as a
loss payee. If the Project does not involve new or major construction, City may, in its
discretion, permit an Installation Floater. If authorized, a Property Installation Floater
shall be obtained that provides for the improvement, remodel, modification, alteration,
conversion, or adjustment to existing buildings, structures, processes, machinery and
equipment. The Property Installation Floater shall provide property damage coverage
for any building, structure, machinery, or equipment damaged, impaired, broken or
destroyed during the performance of the work, including during transit, installation,
and testing at the project site.
If the Contractor maintains higher limits or has broader coverage than the minimums shown
above, the City requires and shall be entitled to all coverage, and to the higher limits maintained by
the Contractor. Any available insurance proceeds in excess of the specified minimum limits of
Rev.03-2020
Project No. 20011
insurance and coverage shall be available to the City.
5.2 Endorsements. The insurance policies are to contain, or be endorsed to contain, the
following provisions:
(a) Additional Insureds: The City of West Covina and its elected and appointed boards,
officers, officials, agents, employees, and volunteers are additional insureds with
respect to: liability arising out of activities performed by or on behalf of the Contractor
pursuant to its contract with the City; products and completed operations of the
Contractor; premises owned, occupied or used by the Contractor; automobiles owned,
leased, hired, or borrowed by the Contractor.
(b) Notice of Cancelation: Each insurance policy required above shall provide that
coverage shall not be canceled, except with notice to the City.
(c) Primary Coverage: The Contractor's insurance coverage shall be primary insurance as
respects the City of West Covina, its officers, officials, agents, employees, and
volunteers. Any other insurance maintained by the City of West Covina shall be
excess and not contributing with the insurance provided by this policy.
(d) Waiver of Subrogation: Contractor hereby grants to City a waiver of any right to
subrogation which any insurer of said Contractor may acquire against the City by
virtue of the payment of any loss under such insurance. Contractor agrees to obtain
any endorsement that may be necessary to affect this waiver of subrogation, but this
provision applies regardless of whether or not the City has received a waiver of
subrogation endorsement from the insurer.
(e) Coverage Not Affected: Any failure to comply with the reporting provisions of the
policies shall not affect coverage provided to the City of West Covina, its officers,
officials, agents, employees, and volunteers.
(f) Coverage Applies Separately: The Contractor's insurance shall apply separately to
each insured against whom claim is made or suit is brought, except with respect to the
limits of the insurer's liability.
53 Deductible or Self Insured Retention. If any of such policies provide for a
deductible or self -insured retention to provide such coverage, the amount of such deductible or self -
insured retention shall be approved in advance by City. The City may require the Contractor to
purchase coverage with a lower retention or provide proof of ability to pay losses and related
investigations, claim administration, and defense expenses within the retention. The policy language
shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the
named insured or City.
5.4 Certificates of Insurance. Contractor shall provide to City certificates of insurance
showing the insurance coverages and required endorsements described above, in a form and content
approved by City, prior to performing any services under this Agreement. The City reserves the right
to require complete, certified copies of all required insurance policies, including endorsements
required by these specifications, at any time.
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Project No. 20011
5.5 Non -limiting. Nothing in this Section shall be construed as limiting in any way the
indemnification provision contained in this Agreement or the extent to which Contractor may be
held responsible for payments of damages to persons or property resulting from Contractor's or its
subcontractors' performance of the work covered under this Agreement.
5.6 Subcontractors. Contractor shall require and verify that all subcontractors maintain
insurance meeting all requirements stated herein, and Contractor shall ensure that the City is listed as
an additional insured on insurance required of subcontractors.
5.7 Sufficiency of Insurers. Insurance required by this Agreement shall be satisfactory
only if issued by companies authorized to do business in California, rated with a current A.M. Best's
rating of no less than A:VII unless such requirements are waived by the City's Risk Manager in
writing due to unique circumstances. If the City's Risk Manager determines that the work or services
to be performed under this Agreement creates an increased risk of loss to the City, the Risk Manager
may increase the minimum limits of the insurance policies required by this Section by providing
written notice to Contractor; provided that the Contractor may appeal such determination to the City
Council of City within ten (10) days of receipt of notice from the Risk Manager.
;�I ♦ 1111101R
6.1 Labor and Materials and Performance Bonds. Concurrently with execution of this
Agreement, Contractor shall deliver to City a labor and materials bond and a performance bond each
in the sum of the amount of this Agreement, in the forms provided by the City, which secures the
faithful performance of this Agreement. The bonds shall contain the original notarized signature of an
authorized officer of the surety and affixed thereto shall be a certified and current copy of his/her
power of attorney. The bonds shall be unconditional and remain in force during the entire term of the
Agreement and shall be released or exonerated only if the Contractor promptly and faithfully
performs all terms and conditions of this Agreement.
6.2 Sufficiency of Sureties. Sureties must be authorized to issue bonds in California. In
addition, sureties must possess a minimum rating from A. M. Best Company of A:VII and must be
listed as an acceptable surety on federal bonds by the United States Department of the Treasury,
http://www.fins.treas.gov/c570/c570.htm1, subject to the maximum amount shown in the listing. If co -
sureties are used, their bonds must be on a joint and several basis.
6.3 Substitution of Securities. Pursuant to California Public Contract Code Section
22300, substitution of eligible equivalent securities for any moneys withheld to ensure
performance under the Agreement for the work to be performed will be permitted at the request
and expense of Contractor.
7.0 INDEMNIFICATION
Contractor agrees to defend (with legal counsel of City's choosing), indemnify, hold free and
harmless the City, its elected and appointed officials, officers, agents and employees, at Contractor's
sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings
brought against the City, its elected and appointed officials, officers, agents and employees arising out
of the performance of the Contractor, its employees, and/or authorized subcontractors, of the work
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undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply
without any advance showing of negligence or wrongdoing by the Contractor, its employees, and/or
authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts
as its basis the negligence, errors, omissions or misconduct of the Contractor, its employees, and/or
authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability
against the City, its elected and appointed officials, officers, agents and employees based upon the
work performed by the Contractor, its employees, and/or authorized subcontractors under this
Agreement, whether or not the Contractor, its employees, and/or authorized subcontractors are
specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Contractor
shall not be liable for the defense or indemnification of the City for claims, actions, complaints or
suits arising out of the sole active negligence or willful misconduct of the City. This provision shall
supersede and replace all other indemnity provisions contained in any other document, which shall be
of no force and effect.
(a) Contractor will defend any action or actions filed in connection with any of said
claims or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees
incurred in connection therewith.
(b) Contractor will promptly pay any judgment rendered against the City, its officers,
agents or employees for any such claims or liabilities arising or alleged to arise out of or in connection
with Contractor's (or its agents', employees', subcontractors', or invitees') negligent performance of
or failure to perform such work, operations or activities hereunder; and Contractor agrees to save and
hold the City, its officers, agents, and employees harmless therefrom.
(c) If the City, its officers, agents or employees is/are made a party to any action or
proceeding filed or prosecuted against Contractor for such damages or other claims arising or alleged
to arise out of or in connection with the negligent performance of or failure to perform the work,
operation or activities of Contractor hereunder, Contractor shall pay to the City, its officers, agents or
employees, any and all costs and expenses incurred by the City, its officers, agents or employees in
such action or proceeding, including but not limited to, legal costs and attorneys' fees for counsel
acceptable to City.
(d) Contractor's duty to defend and indemnify as set forth herein shall include any claims,
liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury
to persons or property arising or alleged to arise from, in connection with, as a consequence of or
pursuant to any state or federal law or regulation regarding hazardous substances, including but not
limited to the Federal Insecticide, Fungicide and Rodenticide Act ("FIFRA"), Comprehensive
Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), Resource
Conservation and Recovery Act of 1976 ("RCRA"), the Hazardous and Solid Waste Amendments of
1984, the Hazardous Material Transportation Act, the Toxic Substances Control Act, the Clean Air
Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous
Waste Control Law or the Porter -Cologne Water Quality Control Act, as any of those statutes may be
amended from time to time.
Contractor's indemnification obligations pursuant to this Section shall survive the termination
of this Agreement. Contractor shall require the same indemnification in favor of City from all
subcontractors.
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8.0 RECORDS AND REPORTS
8.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer
such reports concerning the performance of the services required by this Agreement as the
Contract Officer may require. Contractor hereby acknowledges that the City is greatly concerned
about the cost of work and services to be performed pursuant to this Agreement. For this reason,
Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or
events that may or will materially increase or decrease the cost of the work or services
contemplated herein, Contractor shall promptly notify the Contract Officer of said fact,
circumstance, technique or event and the estimated increased or decreased cost related thereto.
8.2 Records. Contractor shall keep, and require subcontractors to keep, such books and
records (including but not limited to payroll records as required herein) as may be necessary to
perform the services required by this Agreement and enable the Contract Officer to evaluate the
performance of such services. The Contract Officer shall have full and free access to such books and
records at all times during normal business hours of City, including the right to inspect, copy, audit
and make records and transcripts from such records. Such records shall be maintained for a period of
three (3) years following completion of the services hereunder, and the City shall have access to such
records in the event any audit is required.
83 Ownership of Documents. All drawings, specifications, reports, records, documents
and other materials prepared by Contractor, its employees, subcontractors and agents in the
performance of this Agreement shall be the property of City and shall be delivered to City upon
request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have
no claim for further employment or additional compensation as a result of the exercise by City of its
full rights of ownership of the documents and materials hereunder. Contractor may retain copies of
such documents for its own use. Contractor shall have an unrestricted right to use the concepts
embodied therein. All subcontractors shall provide for assignment to City of any documents or
materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor
shall indemnify City for all damages resulting therefrom.
9.0 ENFORCEMENT OF AGREEMENT; TERMINATION
9.1 Governing Law. This Agreement shall be construed and interpreted both as to
validity and to performance of the parties in accordance with the laws of the State of California. Legal
actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be
instituted in the Superior Court of the County of Los Angeles, State of California, or any other
appropriate court in such county, and Contractor covenants and agrees to submit to the personal
jurisdiction of such court in the event of such action.
9.2 Notice of Default and Cure Period. If either party fails to perform its obligations
hereunder, the nondefaulting party may provide the defaulting party written notice of such default.
The defaulting party shall have ten (10) days to cure the default; provided that, if the default is not
reasonably susceptible to being cured within said ten (10) day period, the defaulting party shall have a
reasonable time to cure the default, not to exceed a maximum of thirty (30) days, provided the
defaulting party commences to cure such default within ten (10) days of service of such notice and
diligently prosecutes the cure to completion; provided further that if the default is an immediate
danger to the health, safety and general welfare, the defaulting party shall take such immediate action
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as may be necessary. Notwithstanding the foregoing, the nondefaulting party may, in its sole and
absolute discretion, grant a longer cure period. Should the defaulting party fail to cure the default
within the time period provided in this Section, the nondefaulting party shall have the right, in
addition to any other rights the nondefaulting party may have at law or in equity, to terminate this
Agreement, and/or to call upon any completion or payment bond or other security for performance
thereof. Compliance with the provisions of this Section shall be a condition precedent to bringing any
legal action, and such compliance shall not be a waiver of any party's right to take legal action in the
event that the dispute is not cured.
93 Termination for Default of Contractor. If termination is due to the failure of the
Contractor to fulfill its obligations under this Agreement, Contractor shall vacate any City owned
property which Contractor is permitted to occupy hereunder and City may, upon termination, take
over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall
be liable to the extent that the total cost for completion of the services required hereunder exceeds the
compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such
damages), and City may withhold any payments to the Contractor for the purpose of setoff or partial
payment of the amounts owed the City as previously stated.
9.4 Termination for Convenience. The City may terminate this Agreement without
cause for convenience of the City upon giving Contractor thirty (30) days prior written notice of
termination of the Agreement. Upon receipt of the notice of termination, the Contractor shall cease all
further work pursuant to the Agreement. Upon such termination by the City, the Contractor shall not
be entitled to any other remedies, claims, actions, profits, or damages except as provided in this
paragraph. Upon the receipt of such notice of termination, Contractor shall be entitled to the following
compensation:
(a) The contract value of the work completed through and including the date of receipt of
the notice of termination, less the amount of progress payments received by Contractor.
(b) Actual move -off costs including labor, rental fees, equipment transportation costs, the
costs of maintaining on -site construction office for supervising the move -off.
(c) The cost of materials custom-made for this Agreement which the Contractor cannot
use in its normal course of business, and for which the City has not already paid.
(d) Any costs shall not include any markups as might otherwise be allowed by any plans
or specifications which were a part of the Agreement.
The provisions of this Section shall supersede any inconsistent provisions of the Agreement or
the Bid Documents. City and Contractor agree that the provisions of this Section are a substantive part
of this Agreement's consideration.
9.5 "Claims" by Contractor under Section 9204. Notwithstanding any other
provision of this Agreement to the contrary, this Agreement shall be subject to all requirements of
Public Contract Code Section 9204 ("Section 9204") as it may be amended from time to time. The
parties acknowledge that Section 9204 applies to certain requests by Contractor, such as certain
requests for time extensions, certain requests for payments not covered by contract, and certain
requests for payments of amounts disputed by City. The parties further acknowledge that Section
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9204 establishes all of the following: (i) Contractor may submit a "claim" to the City, as that term
is defined in Section 9204; (ii) City has an initial 45 days to review and respond to the claim to
state "what portion of the claim is disputed and what portion is undisputed". If the City does not
issue a written statement, the claim is deemed rejected in its entirety; (iii) Contractor must furnish
reasonable documentation to support the claim; (iv) City has 60 days from its written
determination to pay any undisputed amount; and (v) specified procedures apply to resolve any
amounts in dispute.
9.6 Waiver. No delay or omission in the exercise of any right or remedy by a
nondefaulting parry on any default shall impair such right or remedy or be construed as a waiver. A
parry's consent to or approval of any act by the other party requiring the party's consent or approval
shall not be deemed to waive or render unnecessary the other parry's consent to or approval of any
subsequent act. Any waiver by either party of any default must be in writing and shall not be
considered a waiver of any other default concerning the same or any other provision of this
Agreement.
9.7 Rights and Remedies are Cumulative. Except with respect to rights and remedies
expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are
cumulative and the exercise by either party of one or more of such rights or remedies shall not
preclude the exercise by it, at the same or different times, of any other rights or remedies for the same
default or any other default by the other party.
9.8 Legal Action. In addition to any other rights or remedies, either parry may take legal
action, at law or in equity, to cure, correct or remedy any default, to recover damages for any default,
to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to
obtain any other remedy consistent with the purposes of this Agreement.
9.9 Liquidated Damages. Contractor agrees that failure to complete work within the
time allowed herein will result in damages being sustained by the City. Contractor further agrees that
the determination of actual damages for any delay in performance of this Agreement would be
extremely difficult or impractical to determine in the event of a breach of this Agreement. Therefore,
Contractor agrees that it and its sureties shall be liable for and shall pay to the City liquidated damages
in the amount of Five Hundred Dollars ($500.00) for each working day of delay in the performance of
any service required hereunder. Contractor further agrees that liquidated damages may be assessed for
failure to comply with the emergency call out requirements described in the Scope of Services. The
City may withhold from any amounts payable on account of services performed by the Contractor any
accrued liquidated damages. Contractor, on behalf of itself and its sureties, and City agree that the
liquidated damages constitute a reasonable estimate of actual damages, and are not punitive.
10.0 CITY OFFICERS AND EMPLOYEES, NONDISCRIMINATION
10.1 Non -liability of City Officers and Employees. No officer or employee of the City
shall be personally liable to the Contractor, or any successor in interest, in the event of any default or
breach by the City or for any amount which may become due to the Contractor or to its successor, or
for breach of any obligation of the terms of this Agreement.
10.2 Conflict of Interest. The Contractor warrants that it has not paid or given and will not
pay or give any third party any money or other consideration for obtaining this Agreement.
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10.3 Covenant Against Discrimination. Contractor covenants that, by and for itself, its
heirs, executors, assigns, and all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of persons on account of race, color,
creed, religion, sex, gender, gender expression, marital status, national origin, disability, pregnancy,
sexual orientation or ancestry in the performance of this Agreement. To the extent required by law,
Contractor shall take affirmative action to ensure that applicants are employed and that employees are
treated during employment without regard to their race, color, creed, religion, sex, gender, gender
expression, marital status, national origin, disability, pregnancy, sexual orientation or ancestry.
11.0 MISCELLANEOUS PROVISIONS
11.1 Notice. Any notice, demand, request, document, consent, approval, or communication
either party desires or is required to give to the other party or any other person shall be in writing and
shall be deemed to be given when served personally or deposited in the U.S. Mail, prepaid, first-class
mail, return receipt requested, addressed as follows:
To City: City of West Covina
1444 West Garvey Avenue South
West Covina, California 91790
Attn: City Engineer
To Contractor: Gentry Brothers, Inc.
384 Live Oak Ave.
Irwindale, CA 91706
Attn: Wayne Gentry
11.2 Interpretation. The terms of this Agreement shall be construed in accordance with
the meaning of the language used and shall not be construed for or against either party by reason of
the authorship of this Agreement or any other rule of construction which might otherwise apply.
11.3 Integration; Amendment. It is understood that there are no oral agreements between
the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all
previous negotiations, arrangements, agreements and understandings, if any, between the parties, and
none shall be used to interpret this Agreement. This Agreement may be amended at any time by the
mutual consent of the parties by an instrument in writing.
11.4 Severability. If one or more of the words, phrases, sentences, clauses, paragraphs, or
sections in this Agreement is declared unenforceable by a court of competent jurisdiction, such
unenforceability shall not affect any of the remaining words, phrases, sentences, clauses, paragraphs,
or sections of this Agreement which are severable. Remaining enforceable provisions shall be
interpreted to carry out the intent of the parties unless an invalid provision is so material that its
invalidity deprives either parry of the basic benefit of their bargain or renders this Agreement
meaningless.
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11.5 Hiring of Undocumented Aliens Prohibited. Contractor shall not hire, employ, or
allow any person to work under this Agreement unless such person is properly documented and may
legally work within the United States.
11.6 Unfair Business Practices Claims. Consistent with Public Contract Code Section
7103.5, Contractor, on behalf of itself and all subcontractors, offers and agrees to assign to the City
all rights, title, and interest in and to all causes of action they may have under Section 4 of the
Clayton Act (15 U.S.C. Section 15) and under the Cartwright Act (Chapter 2 (commencing with
Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from
purchases of goods, services or materials pursuant to this Agreement. This assignment becomes
effective when the City renders final payment to the Contractor without further acknowledgment
by the parties.
11.7 Corporate Authority. The persons executing this Agreement on behalf of the parties
hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to
execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such
party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement
does not violate any provision of any other Agreement to which said party is bound.
11.8 Legal Responsibilities. The Contractor shall keep itself informed of City, State, and
Federal laws, ordinances and regulations, which may in any manner affect the performance of its
services pursuant to this Agreement. The Contractor shall at all times observe and comply with all
such laws, ordinances and regulations. Neither the City, nor its officers, agents, assigns nor employees
shall be liable at law or in equity as a result of the Contractor's failure to comply with this Section.
11.9 Counterparts and Electronic Signatures. This Agreement may be executed in one
or more counterparts, each of which shall be deemed an original. All counterparts shall be construed
together and shall constitute one agreement. Counterpart written signatures may be transmitted by
facsimile, email or other electronic means and have the same legal effect as if they were original
signatures.
[SIGNATURE PAGE FOLLOWS.]
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IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date first
written above.
CITY OF WEST COVINA,
A municipal corporation
Date:
David Carmany
City Manager
Date: _7- 31- Z
Lisa Sherrick
Assistant City Clerk
APPROVED AS TO FORM:
Date:
Thomas P. Duarte
City Attorney
APPROVED AS TO INSURANCE:
Date:
Helen Tran
Risk Management
EXHIBIT A
CONTRACTOR'S PROPOSAL
EXHIBIT B
CERTIFICATES OF INSURANCE
EXHIBIT C
BONDS