6-15-2021 AGENDA ITEM NO.9 - CONSIDERATION OF CONSTRUCTION SERVICES AGREEMENT FOR FIRE STATION NO.4 PARKING LOT IMPROVEMENTS - PROJECT NO.21034AGENDA ITEM NO.9
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: June 15, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF CONSTRUCTION SERVICES AGREEMENT FOR FIRE STATION
NO.4 PARKING LOT IMPROVEMENTS - PROJECT NO.21034
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 All American
Asphalt for $208,194,
2. Authorize 20% 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:
In January 2021, Council approved a budget amendment for various capital improvements at Fire Stations. As part
of this budget amendment, one of the capital improvement projects was Fire Station No. 4 parking lot improvements.
Fire Station No. 4 has approximately 31,000 square feet of asphalt paving that makes up the south rear parking lot
of the station. After field review, staff determined that the deteriorated asphalt conditions on the existing parking lot
were due to heavy fire apparatus movement on existing asphalt pavement. The construction plans were prepared to
incorporate concrete pavement for the fire apparatus maneuver area within the existing parking lot to the Fire
Station rear bay. The new concrete pavement will prolong the pavement life of the existing parking lot by providing
an adequate structural pavement section for its intended use.
The proposed work includes removal and reconstruction of existing asphalt pavement and construction of concrete
pavement within the existing parking lot to the Fire Station rear bay, removal and reconstruction of concrete gutter
for drainage improvements and restoration of parking striping & marking.
DISCUSSION:
On May 6, 2021, staff advertised the construction bid package. The following six (6) bids were received by the
City at the bid opening held on May 20, 2021, at 11:00 a.m.
Contractor Name ITotal Bid Amount
All American Asphalt 1$208,194.00
Onyx Paving Company
1$222,000.00
$234,400.00
TSR Construction and Inspection
However, deemed as non -responsive. Contractor did not
submit the bid electronically via City of West Covina's
Planetbids portal, as required per Contract documents.
Senitica Construction
1$288,100.00
CEM Construction
1$301,050.00
Asphalt Fabric and Engineering
1$336,116.93
AID Builders
1$493,445.00
In reviewing the submitted bids, there were two vendors staff determined issues with the submitted bids. First, the
bid submitted by TSR Construction and Inspection was determined to be non -responsive as TSR Construction and
Inspection did not submit the bid electronically via City of West Covina's Planetbids portal, as required per the
contract documents. Second, the bid from AID Builders had a mathematical discrepancy between bid item unit
price and total price on bid item 3. According to project specifications, in the case of discrepancies in the amount of
bid, unit prices shall govern over extended amounts, and words shall govern over figures. The error was corrected
and total bid price for AID Builders is calculated as $493,445. This correction does not change the lowest
responsive bid determination.
Lowest Responsive Bid
The lowest responsive bid was submitted by All American Asphalt in the amount of $208,194. Staff conducted a
bid analysis including checking references, California Contractor Licensing, Department of Industrial Relations
registration, State and Federal debarment list review for the apparent low bidder, All American Asphalt. Attached
is the draft of the agreement to be executed with All American Asphalt (Attachment No. 1).
Budget
The following is the breakdown of the project budget:
Construction Contract
$208,19
Contingency Budget allowance authorization to staff to utilize for
unforeseen conditions as necessary (10%)
$20,819
Total Construction Budget
$229,01
Construction Management and Inspection
$22,901
Total Project Budge
$251,91
LEGAL REVIEW:
The City Attorney's Office will review and approve the agreement as to form prior to execution.
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) Replacement or reconstruction of existing utility and/or facilities involving negligible or no
expansion of capacity.
Fiscal Impact
FISCAL IMPACT:
There is no new General fund burden as funds for Fire Station improvements were allocated in Fiscal Year 20-21
budget. The funds available for this project are as follows:
Project No.
lFunds
JAccount No.
JAmount
21034
ICIP Fire Station improvements
160.80.7001.7500
$251,914.00
Total
1$251,914.00
Attachments
Attachment 1 Contract Agreement with All American Asphalt
CITY COUNCIL GOALS & OBJECTIVES: Enhance City Facilities and Infrastructure
Protect Public Safety
Attachment No. 1
CONTRACT DOCUMENTS
CITY OF WEST COVINA
CONSTRUCTION SERVICES AGREEMENT FOR
PROJECT NO.21034
FIRE STATION NOA PARKING LOT IMPROVEMENTS
THIS CONSTRUCTION SERVICES AGREEMENT (herein "Agreement"), is made
and entered into as of the 1st day of June, 2021 ("Effective Date") by and between the CITY OF
WEST COVINA, a municipal corporation (herein "City"), and ALL AMERICAN ASPHALT, a
California corporation (herein "Contractor").
RECITALS
A. City requires construction services for the Fire Station No.4 Parking Lot
Improvements, Project No. 21034 ("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 referred 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 for the Project (collectively, "Bid Documents"),
incorporated by this reference as if fully set forth herein;
Project No. 21034
(c) Addendum No. 1 to the Bid Documents, dated May 16, 2021, incorporated
by this reference as if fully set forth herein;
(d) Contractor's Proposal, attached hereto as Exhibit A and incorporated
herein;
(e) Certificates of Insurance, attached hereto as Exhibit B and incorporated
herein;
(f) Bonds, attached hereto as Exhibit C and incorporated herein;
(g) The Standard Specifications and Standard Specifications for Public Works
Construction, as detailed in Section 19-1 of the West Covina Municipal
Code, incorporated by this reference as if fully set forth herein; and
(h) 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,
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Project No. 21034
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 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 Wage Requirements.
(a) Prevailing Wage Laws. Contractor is aware of the requirements of Chapter 1
(beginning at Section 1720 et seq.) of Part 7 of Division 2 of the California Labor Code, as well
as Title 8, Section 16000 et seq. of the California Code of Regulations ("Prevailing Wage Laws"),
which require the payment of prevailing wage rates and the performance of other requirements
on "public works" and "maintenance" projects. This Project is a "public works" project and
requires compliance with the Prevailing Wage Laws. Contractor shall defend, indemnify and hold
the City, its elected officials, officers, employees and agents free and harmless from any claim or
liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
(b) Payment of Prevailing Wages. Contractor shall pay the prevailing wage rates for
all work performed under this Agreement. When any craft or classification is omitted from the
general prevailing wage determinations, Contractor shall pay the wage rate of the craft or
classification most closely related to the omitted classification. A copy of the general prevailing
wage rate determination is on file in the Office of the City Clerk and is incorporated into this
Agreement as if fully set forth herein. Contractor shall post a copy of such wage rates at all times
at the project site(s).
(c) Legal Working Day. In accordance with the provisions of Labor Code Section
1810 et seq., eight (8) hours is the legal working day. Contractor and any subcontractor(s) of
Contractor shall comply with the provisions of the Labor Code regarding eight (8)-hour work day
and 40-hour work week requirements, and overtime, Saturday, Sunday, and holiday work. Work
performed by Contractor's or any subcontractor's employees in excess of eight (8) hours per day,
and 40 hours during any one week, must include compensation for all hours worked in excess of
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eight (8) hours per day, or 40 hours during any one week, at not less than one and one-half times
the basic rate of pay. Contractor shall forfeit as a penalty to City Twenty -Five Dollars ($25.00),
or any greater penalty set forth in the Labor Code, for each worker employed in the execution of
the work by Contractor or by any subcontractor(s) of Contractor, for each calendar day during
which such worker is required or permitted to the work more than eight (8) hours in one calendar
day or more than 40 hours in any one calendar week in violation of the Labor Code.
(d) Apprentices. Contractor shall comply with the provisions of Labor Code Section
1777.5 concerning the employment of apprentices on public works projects. Contractor shall be
responsible for ensuring compliance by its subcontractors with Labor Code Section 1777.5.
(e) Payroll Records. Pursuant to Labor Code Section 1776, Contractor and any
subcontractor(s) shall keep accurate payroll records, showing the name, address, social security
number, work classification, straight time and overtime hours worked each day and week, and the
actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed
by Contractor or any subcontractor in connection with this Agreement. Each payroll record shall
contain or be verified by a written declaration that it is made under penalty of perjury, stating both
of the following: (1) The information contained in the payroll record is true and correct; and (2)
The employer has complied with the requirements of Sections 1771, 1881, and 1815 of the Labor
Code for any work performed by his or her employees on this Project. The payroll records shall
be certified and shall be available for inspection at all reasonable hours in accordance with the
requirements of Labor Code Section 1776.
(f) Registration with DIR. Contractor and any subcontractor(s) of Contractor shall
comply with the provisions of Labor Code Section 1771 and Labor Code Section 1725.5 requiring
registration with the DIR.
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 Two Hundred Eight Thousand One Hundred Ninety Four Dollars and Zero Cents
($208,194.00) (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
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Project No. 21034
(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, 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.
3.1 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.
3.3 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.
3.4 Term. Unless earlier terminated as set forth herein, this Agreement shall continue
in full force and effect until final approval and acceptance of the project by the City.
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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:
Edward J. Carlson, Vice President_
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
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Project No. 21034
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 in the invitation for bids or specifications. Where the specifications can 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 trunkline 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 incurred 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.
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(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.
5.0 INSURANCE
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:
(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.
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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 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.
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(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.
5.3 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.
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 raring 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.
6.1 Labor and Materials, Performance and Warranty Bonds. Concurrently with
execution of this Agreement, Contractor shall deliver to City: (1) a labor and materials bond in an
amount equal to one hundred percent (100%) of the Contract Sum as security for the payment of
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Project No. 21034
all persons furnishing labor or materials in connection with the work, (2) a performance bond in
an amount equal to one hundred percent (100%) of the Contract Sum as security for the faithful
performance of this Agreement, and (3) a warranty bond in an amount equal to fifty percent (50%)
of the Contract Sum to guarantee the work for a period of one (1) year following completion of
the work, on the forms provided by the City. 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.fms.treas.gov/c570/c570.html, 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 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.
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(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.
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
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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.
8.3 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 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 parry's right to take legal action in the event that the dispute is not cured.
9.3 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
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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 9204 establishes all of the following: (i) Contractor may submit a
"claim" to the City, as that term is deemed 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
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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 parry'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 parry 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 party 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.
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,
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Project No. 21034
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: All American Asphalt
400 East Sixth Street
Corona, CA 92879
Attn: Edward J. Carlson
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 party of the basic benefit of their bargain or renders this
Agreement meaningless.
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.
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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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Project No. 21034
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
CONTRACTOR
Date:
Edward J. Carlson
Vice President
ATTEST:
Lisa Sherrick
Assistant City Clerk
Date:
Thomas P. Duarte
City Attorney
APPROVED AS TO INSURANCE:
Date:
Helen Tran
Risk Management
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Page I of 2
(Use of City Labor and Materials Bond Form is Required)
LABOR AND MATERIALS BOND
PUBLIC WORK (CALIFORNIA)
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, , as Principal, has entered
into a contract dated 20, with the City of West Covina (Obligee)
referred to and made a part hereof to perform the following work, to wit:
Fire Station No.4 Parking Lot Improvements, Project No: 21034 which requires Principal to
file this bond to secure claims made under Civil Code Section 3082 et seq.
NOW THEREFORE, we, , as Principal, and
, a corporation organized under the laws of
and duly authorized to transact business in the State of California, as
Surety, are held firmly bound unto the City of West Covina, as Obligee, and all sub -contractors,
laborers, material, persons and other persons employed in the performance of the referenced
agreement, in the sum of Dollars
($ ), lawful money of the United States of America, for the payment
whereof well and truly to be made the Principal and Surety bind themselves, their heirs, executors,
administrators, successors, and assigns, jointly and severally, firmly by these presents.
If the above bounden PRINCIPAL, his or its heirs, executors, administrators, successors,
assigns, or any of his or its sub -contractors, fails to pay for any materials, provisions, provender,
or other supplies, or teams, implements or machinery, used in, upon, for or about the performance
of the work contracted to be done, or for any work or labor to persons named in Section 3181 or
the Civil Code, thereon of any kind, or for amounts due under the Unemployment Insurance Code
with respect to such work or labor deducted, withheld and paid over to the Employment
Development Department from the wages of employees of the contractor and sub -contractors
pursuant to Section 13020 of the Unemployment Insurance Code, that the SURETY on this bond
will pay the same, in an amount not exceeding the sum specified in this bond, AND ALSO, in case
suit is brought upon this bond, a reasonable attorney's fee, which shall be awarded by the court to
the prevailing party in said suit, said attorney's fee to be taxed as costs in said suit and to be
included in the judgment herein rendered.
As part of the obligation secured hereby, the SURETY shall not be exonerated or released
from the obligation of the bond by any change, alteration, or modification in or of any contract,
plans, specifications, or agreement pertaining or relating to any scheme or work of improvement
or pertaining or relating to the furnishing of labor, materials, or equipment therefor, nor by any
change or modification of any terms of payment or extension of the time for any payment
pertaining or relating to any scheme of work of improvement, nor by any rescission or attempted
rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in
the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under
any such contract or agreement, or under the bond, nor, where the bond is given for the benefit of
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(Use of City Labor and Materials Bond Form is Required)
claimants, by any fraud practiced by any person other than the claimant seeking to recover on the
bond.
This bond shall inure to the benefit of any and all persons, companies and corporations
entitled to file claims under Civil Code Section 3082 so as to give them a right of action in a suit
on this bond.
This bond is executed for the purpose of complying with the laws of the State of California
designated as Title 15, Chapter 7, Works of Improvement, commencing with Section 3247 of the
Civil Code of the State of California and all amendments thereto, and shall inure to the benefit of
any of the persons named in Section 3181 of the Civil Code of the State of California.
IN WITNESS THEREOF, we have hereunto set our hands and seals this day of
,20
(Corporate Seal)
Principal
By
Title
(Corporate Seal)
Surety
By
Title
(California Civil Code Sections 3248, 3225)
APPROVED AS TO FORM:
/s/ Thomas P. Duarte
City Attorney
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Page 1 of 2
(Use of City Warranty Bond Form is Required)
WARRANTY BOND
PUBLIC WORKS
WHEREAS, the City Council of the City of West Covina, State of California, and
, (hereinafter designated as
"Principal") have entered into a written contract (the "Contract") dated
whereby Principal agrees to install and complete the Fire Station
No.4 Parking Lot Improvements, Project No: 21034 which Contract is hereby referred to and
made a part hereof; and
WHEREAS, said Principal is required under the terms of said Contract to furnish a bond for the
guarantee and warranty of the work for a period of one (1) year following the completion and
acceptance thereof against any defective work or labor done or defective materials furnished.
NOW, THEREFORE, we, the Principal and ,
a corporation organized under the laws of and duly
authorized to transact business in the State of California, as Surety, are held and firmly bound unto
the City of West Covina, (hereinafter called "City"), in the penal sum of
Dollars, ($ ) lawful money of
the United States, which is 50% of the amount of the Contract, for the payment of which sum well
and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly
and severally, firmly by these presents.
The condition of this obligation is such that if the above bounded principal, his or its heirs,
executors, administrators, successors or assigns, shall in all things stand to and abide by, and well
and truly keep and perform the covenants, conditions and provisions in the said Contract and any
alteration thereof made as therein provided, on his or their part, to be kept and performed at the
time and in the manner therein specified, and in all respects according to their true intent and
meaning, and shall indemnify and save harmless City, its officers, agents and employees, as therein
stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full
force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefor,
there shall be included costs and reasonable expenses and fees, including reasonable attorney=s
fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and
included in any judgment rendered.
The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to
the terms of the Contract or to the work to be performed thereunder or the specifications
accompanying the same shall in anywise affect its obligations on this bond, and it does hereby
waive notice of any such change, extension of time, alteration or addition to the terms of the
Contract or to the work or to the specifications.
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Page 2 of 2
(Use of City Warranty Bond Form is Required)
IN WITNESS THEREOF, we have hereunto set our hands and seals this day of
,20_
Principal
By
Signature
Title
Surety
Address
Phone Number
By
Signature
Title
APPROVED AS TO FORM:
/s/ Thomas P. Duarte
City Attorney
STATE OF CALIFORNIA
COUNTY OF
Date
Date
On before me, a Notary Public,
personally appeared personally known
to me OR proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
NOTARY PUBLIC
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SUPPLEMENTAL INFORMATION TO BE COMPLETED BY PRINCIPAL
If an individual, so state. If a firm or co -partnership, state the firm and give the names
of all individual co-partners composing the partnership. If a corporation, state legal name
of corporation; state also the names of the president, secretary, treasurer and manager
thereof.
Business Address:
Telephone Number:
Date:
Print Name:
Signature:
Principal
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SUPPLEMENTAL INFORMATION TO BE COMPLETED BY PRINCIPAL
If an individual, so state. If a firm or co -partnership, state the firm and give the names
of all individual co-partners composing the partnership. If a corporation, state legal name
of corporation; state also the names of the president, secretary, treasurer and manager
thereof.
Business Address:
Telephone Number:
Date:
Print Name:
Signature:
Principal
24
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Limited liability company. Enter Me tax cdassi icatlon (C=C corporation, S=S corporation. P�annership) ►
iS
Note. Fora angle -member LLC Ma is disregarded. Oo hat check LLC: check the appmpnete box n Ne fete above for
Exemption ham FATCA reporting
the tax Uassiication d the single-mernber owner.
code (iany)
o
_ Omer lies instructions)►
!E
s Address (nnbw- street. and apt- or suite no.)
ut
Requesters name and address (optpna0
6 Cry, state, and ZIP code
7 List a hit numberts) here (optlonah
Taxibaver Identification Number IN
Enter your TIN In the appropriate box. The TIN provided must match the name given on line 1 to "old
I Social self eIII'm�d1lleer
backup ls,this this Is generally your soda) security number (page However, fora
withholding. For indiproprietor.
1II
en,sole f
resident siren, sole profxlelor. or disregarded entity, see the Part I instructions on page 3. For other
entities, it Is your employer idemificaton number (EIN). If you do not have a number, see How to get a
TIN on page 3.
or
Note. If the account is in more than one name, see the Instructions for line 1 and the chart on page 4 for
guidelines on whose number to enter_
Under penalties of perjury, I certify that:
1. The number shown on this form Is my correct taxpayer Identification number (or I am waiting for a number to be Issued to me): and
2. 1 am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue
Service (IRS) that I am subject to backup withholding as a resuh of a failure to report all interest or dividends, or (c) the IRS has notified me that I am
no longer subject to backup wlthhokting: and
3- I am a U.S. citizen or other U.S. person (defined below): and
4_ The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct
Certification Instructions. you must Goss out Item 2 above it you have been notified by the IRS that you are currently subject to backup withholding
because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage
interest paid, acquisition or abandonment of secured property, cancellation of debt. contributions to an individual retirement arrangement (IRA), and
generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. Sea the
instructions on page 3.
sign signature of
Here I U.S. Person oats►
General Instructions
Section references we to the Internal Revenue Code unless otherwise noted -
Future developments. Information about developments affttorg Form W-9 lsuch
as legislation ar=ed after we release it) is at wow in.gov/fw9.
Purpose of Form
An individual or eNey (Form W-9 requested who ls required to fie an information
return with the IRS must obtain your correct taxpayer ioenlifcatwn number (TIN)
which may be your social securty number (SSN). individual taxpayer Identification
number (TnN), adoption taxpayer ideru f cation number (ATIN), or employer
Identification amber (Eft to report on an information return the amount paid to
you, or other amount reportable an an information mum Examples of information
reams IrcAude, bud we not Imbed to. the following:
• Form 10994NT (Interest earned or peld)
• Farm 1099-DIV (dividends, irturftli g Moore from socks or mutual funds)
• Farm 1099-MISC tvanous types of Incpme. prizes. awards. or gross proceeds)
• Form 1099-8 (stock or mutual fund sales ao cedst ritha transactions by
brokers)
• Form 1099-S (proceeds troth real estate transitions)
• Form 1099-K (merchant card and third party network transactions)
• Form 1098 (home mortgage imeresQ, 109&E tstudent ben inhresr. 1099-T
(turtlon)
• Form 1099-C (canceled debt
• Form 1099-A (acquisition or abadonment of secured property)
Use Form W-9 only it you we a U.S. person (including a resident alien). to
provide your correct TIN.
If you do not retrnn Form W-9 to fhe n?rlvester with a 77N, you might be subject
to backup wWAok rig. See What is b9c l up mMoA9ng? on page 2.
By signing tine filed -out form. you:
1. Certify that the TIN you are giving is correct (or you are wading for a number
to be issued).
2. Caney that you are not sublect to backup withholding, or
3, palm exemption from backup withholding i you are a U S. exempt payee. In
applicable. you are also codifying that as a U.S. person, your allocable snare of
any W.rershp income from a U.S. trade or business is not sublect to me
withholding tax on foreign patrters' share of effectively connected rcome, and
4. C rhfy that FATCA ootlels) entered on this farm (it any) indicating that you are
exempt from the FATCA reporting, is correct See What n FATCA rap=ng? on
page 2 for further Infamaoor
25
Rev.01-2021
GUARANTEE
TO THE CITY OF WEST COVINA
Project No: 21034
As a material inducement to the City to award the contract for Project No. to the
, the undersigned ("Guarantor") has agreed to enter into this guarantee.
The Guarantor hereby unconditionally guarantees to the fullest extent allowed by law the following
work included in this project:
("the work")
Guarantor guarantees that the materials and equipment used by itself and its sub -contractors will
be free from defects and that the work will conform to the plans and specifications. Should any of
the materials or equipment prove defective or should the work as a whole, or any part thereof,
prove defective for any reason whatsoever (except due to intentional torts by the City), or should
the work as a whole or any part thereof fail to operate properly or fail to comply with the plans
and specifications, Guarantor will, at the City's sole election: 1) reimburse the City, upon written
demand, for all of the City's expenses incurred replacing or restoring any such equipment or
materials, including the cost of any work necessary to make such replacement or repairs; or 2)
replace any such defective material or equipment and repair said work completely, all without any
cost to the City. Guarantor further guarantees that any such repair work will conform to the plans
and specifications for the project. This guarantee will remain in effect for one year from the date
on which the contract for the work is accepted by the City.
Guarantor understands and agrees that the City shall have the unqualified option to make any
replacements or repairs itself or to have such replacement, repair, performed by the undersigned.
The City shall have no obligation to consult with Guarantor before the City proceeds to perform
any repair, replacement, or work itself. If the City elects to have Guarantor perform said repair,
replacement, or work, Guarantor agrees that the repair, replacement, or work shall be performed
within 15 days after receipt of a written demand from the City.
If the City elects to perform the replacement, repairs itself, Guarantor agrees to make
reimbursement payment within 15 days after receipt of a written demand for payment from the
City.
If the Guarantor fails or refuses to comply with this guarantee, the City shall be entitled to all costs
and expenses, including attorneys and expert fees, reasonably incurred by reason of Guarantor's
failure or refusal.
Date
Contractor
By
Title
26
Guarantor
Rev.01-2021
EQUALS
The undersigned desires to use the material, product, thing, or service described below, as "an
equal" to such item as specified.
In accordance with the provisions under General Conditions, entitled EQUALS, if the City shall
find any item so described equal to the respective item specified, then the undersigned may furnish
such item, together with all necessary labor, materials, equipment and incidentals required to
perform and complete the work.
Contractor's Name
Address
Date
Telephone Number
Materials, apparatus or equipment
specified for which bidder proposes "an
equal"
Complete description of the materials,
apparatus or equipment the bidder desires
to use as "an equal" and name of
contractor if different
Specify a e number
1.
2.
3.
27
Rev.01-2021