Agenda Item 3 - CONSIDERATION OF CONSTRUCTION AGREEMENT FOR FY 2021-22 RESIDENTIAL STREETS REHABILITATION PROGRAM (CDBG) - PROJECT NO. 22005AGENDA ITEM NO.3
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: March 15, 2022
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF CONSTRUCTION AGREEMENT FOR FY 2021-22 RESIDENTIAL
STREETS REHABILITATION PROGRAM (CDBG) - PROJECT NO. 22005
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Award the construction agreement for the FY 2021-22 Residential Streets Rehabilitation Program
(CDBG) (Project No. 22005) to R.J. Noble Company as the lowest responsible bidder;
2. Authorize the City Manager execute an agreement with R.J. Noble Company for $1,867,200.00;
3. Authorize 15% of the awarded contract amount as contingency allowance to be used, if necessary,
with the City Manager's approval, for unforeseen conditions; and
4. Authorize the City Manager to negotiate and execute any amendments to the agreement.
BACKGROUND:
As part of City's Pavement Management Program ("PMP"), the proposed project involves pavement
rehabilitation and pavement maintenance work on the recommended streets from PMP. PMP is a
planning and budgeting tool used to prioritize street paving and maintenance projects over a ten-year
period.
The selected streets are based on the recommendations identified within the City's PMP for Fiscal Year
(FY) 2021-22, and also per engineering field review and judgment. City engineering staff reviewed the
PMP recommendations for residential street maintenance, conducted field reviews, and determined the
final streets to be included in this year's (FY 2021-22) Residential Streets Rehabilitation Program.
Major work components include construction of slurry seal, asphalt concrete resurfacing, reconstruction
of localized asphalt repairs (pothole repairs), restoration of traffic loops, installation of traffic striping and
related work.
As part of the project, approximately 2,042,000 square feet of pavement will receive asphalt slurry seal,
and approximately 770,000 square feet of pavement will be resurfaced with new asphalt (coldmill and
overlay). Coldmilling is the controlled removal of the surface of the existing pavement to the desired
depth, with specially designed equipment to restore the pavement surface to a specified grade and
cross -slope. Work also includes localized asphalt pothole repairs, markings and striping and related
work. See Attachment No. 1 — Fiscal Year 2021-22 Residential Streets Rehabilitation Map and Locations
for the streets included on this project.
DISCUSSION:
On February 1, 2022, staff advertised construction bid package. The following four (4) bids were
received by the City at the Bid Opening held on February 22, 2022 at 10:00 a.m.
Contractor Name
Total Bid Amountl
R.J. Noble Company
$1,867,200.0
All American Asphalt
$1,974,442.0
Hardy & Harper, Inc.
$1,987,000.0
Onyx Paving Company
$1,996,000.0
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, R.J. Noble Company.
Lowest Responsive Bid
The lowest responsive bid was submitted by R.J. Noble Company in the amount of $1,867,200.00.
Following Council's approval, the City will enter into an agreement with R.J. Noble Company (Attachment
No. 2).
Budget
The following is the breakdown of the project budget:
Construction Contract
$1,867,200.0
15% Contingency Allowance
$280,080.0
Total Construction Budget
$2,147,280.0
Project Management and Administration (Preparation of Bid
Documents)
$110,000.0
Construction Management and Inspection, CDBG Labor
Compliance
$214,728.0
Newspaper Advertisement, Misc. Expenses
$5,000.0
Total Project Estimate
$2,477,008.0
If approved tonight and once the agreement is fully executed, it will take approximately three months to
complete the project, with anticipated completion by August 2022.
LEGAL REVIEW:
The City Attorney's Office has reviewed the 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) Replacement or reconstruction of existing utility and/or facilities
involving negligible or no expansion of capacity.
Fiscal Impact
FISCAL IMPACT:
The funds available for this project are as follows:
Project No.
IFunds
I Account No.
Budget
Project Cost
22005
JCDBG
131.80.7005.7200
$1,000,000
11,000,000.00
22005
1237 3131
237.80.7005.7200
$1,477,100
$1,477,008.0
Total
$2,477,100
$2,477,008.0
Attachments
Attachment No. 1 - FY 2021-22 Residential Streets Rehabilitation Location Map and List
Attachment No. 2 - Agreement with R.J. Noble Company
Attachment No. 1 - FY 2021-22 Residential Streets Rehabilitation Location Map and List
Legend
Slurry seal streets
Asphalt coldmill and overlay streets
Pavement Rehab Type
Street Name
Begin Location
End Location
Slurry Seal
ALWOOD ST
ST. MALO ST
END OF STREET
Slurry Seal
BAINBRIDGE AVE
ST. MALO ST
CALIFORNIAAVE
Slurry Seal
BARBARA AVE
CALIFORNIAAVE
DUFF AVE
Slurry Seal
BARBARA AVE
BRUCE AVE
END OF STREET
Slurry Seal
BLUE ASH RD
CALIFORNIAAVE
END OF STREET
Slurry Seal
BRADBURYST
BROADMOOR AVE
RADWAY AVE
Slurry Seal
BROADMOOR AVE
MARIANA ST
MARGARITA DR
Slurry Seal
BROADMOOR AVE
SERVICE AVE
END OF STREET
Slurry Seal
BROADMOOR AVE
ITUNI ST
END OF STREET
Slurry Seal
BROADMOOR AVE
DEVERS ST
VINE AVE
Slurry Seal
BROADMOOR AVE
WINDSOR ST
FAIRGROVE AVE
Slurry Seal
BROADMOOR AVE
FRANCISQUITOAVE
REXWOOD ST
Slurry Seal
BROADMOOR AVE
VINE AVE
ROBINDALE ST
Slurry Seal
BRUCE AVE
VINE AVE
ROBINDALE ST
Slurry Seal
BRUCE AVE
ROSEWAY ST
CRUMLEY ST
Slurry Seal
CAMILA RD
CARMENCITA DR
END OF STREET
Slurry Seal
CARMENCITA DR
MARGARITA DR
SERVICE AVE
Slurry Seal
CHRISTOPHER ST
SANDY HOOK ST
GLENDORA AVE
Slurry Seal
CRUMLEYST
DUFF AVE
CALIFORNIAAVE
Slurry Seal
CRUMLEY ST
EVANWOOD AVE
GREENBERRY
Slurry Seal
CRUMLEY ST
END OF STREET
BRUCE AVE
Slurry Seal
CRUMLEY ST
END OF STREET
BRUCE AVE
Slurry Seal
DELHAVEN AVE
CALIFORNIAAVE
BROADMOOR
Slurry Seal
DELVALE ST
SHADYDALE AVE
BROADMOOR
Slurry Seal
DEVERS ST
SHADYDALE AVE
END OF STREET
Slurry Seal
DEVERS ST
BROADMOOR AVE
SHADYDALE AVE
Slurry Seal
DUFF AVE
S END OF BARBARA
END OF STREET
Slurry Seal
DURNESSST
SUNSETAVE
CALIFORNIAAVE
Slurry Seal
DURNESS ST
SANDY HOOK ST
END OF STREET
Slurry Seal
EVANWOOD AVE
GLENDALE ST
SERVICE AVE
Slurry Seal
FARLINGTON ST
BROADMOOR AVE
SHADYDALE AVE
Slurry Seal
FARLINGTON ST
SHADYDALE AVE
END OF STREET
Slurry Seal
GLENDALE ST
CALIFORNIAAVE
EVANWOOD AVE
Slurry Seal
GLENMERE ST
SHADYDALE AVE
END OF STREET
Slurry Seal
GLENSHAW DR
VINE AVE
ROBINDALE ST
Slurry Seal
GLENSHAW DR
CAMERON AVE
CAMILLA RD
Slurry Seal
GREENBERRYAVE
CRUMLEY ST
HERALD ST
Slurry Seal
GREENBERRY DR
CAMILLA RD
CAMERON AVE
Slurry Seal
HERALD ST
CALIFORNIAAVE
EVANWOOD AVE
Slurry Seal
HERALD ST
CALIFORNIAAVE
END OF STREET
Slurry Seal
JANETDALE ST
BROADMOOR AVE
CITY BOUNDARY
Slurry Seal
LEEWOOD ST
GLENSHAW DR
END OF STREET
Slurry Seal
LIGHTHALL ST
SHADYDALE AVE
END OF STREET
Slurry Seal
LUCILLE AVE
CALIFORNIAAVE
END OF STREET
Slurry Seal
MARGARITA DR
SUNSETAVE
EVANWOOD AVE
Pavement Rehab Type
Street Name
Begin Location
End Location
Slurry Seal
MARIANA ST
SUNSETAVE
BROADMOOR AVE
Slurry Seal
MICHELLE ST
CALIFORNIAAVE
GLENDORA AVE
Slurry Seal
MOSSBERG AVE
SHADYDALE AVE
END OF STREET
Slurry Seal
OAK PARK PL
CALIFORNIA AVE
END OF STREET
Slurry Seal
OAKDALE ST
CALIFORNIAAVE
EVANWOOD AVE
Slurry Seal
PINE ST
END OF STREET
CALIFORNIA AVE
Slurry Seal
RADWAY AVE
WEMBLY ST
ROXBURY ST
Slurry Seal
RADWAY AVE
BRADBURYST
FAIRGROVE AVE
Slurry Seal
RANDALL WY
SUNSETAVE
SHADYDALE AVE
Slurry Seal
REXWOOD ST
BROADMOOR AVE
SUNSETAVE
Slurry Seal
ROBINDALE ST
GLENDORA AVE
WREN WY
Slurry Seal
ROBINDALE ST
BRUCE AVE
BROADMOOR AVE
Slurry Seal
ROBINDALE ST
CALIFORNIAAVE
GLENSHAW DR
Slurry Seal
ROSEWAY ST
END OF STREET
SUNSETAVE
Slurry Seal
ROXBURY ST
RADWAY AVE
SHADYDALE AVE
Slurry Seal
SANDY HOOK ST
MICHELLE ST
SPRUCE ST
Slurry Seal
SANDY HOOK ST
MERCED AVE
PINE ST
Slurry Seal
SANDY HOOK ST
BLUE ASH RD
CHRISTOPHER ST
Slurry Seal
SERVICE AVE
CALIFORNIAAVE
GLENDORA AVE
Slurry Seal
SERVICE AVE
WEST COVINA PKWY
CALIFORNIAAVE
Slurry Seal
SHADYDALE AVE
YARNELL ST
RANDALL WY
Slurry Seal
SHADYDALE AVE
MERCED AVE
VINE AVE
Slurry Seal
SHADYDALE AVE
FAIRGROVE AVE
DELVALE ST
Slurry Seal
SHEFFIELD AVE
DELHAVEN AVE
BAINBRIDGE AVE
Slurry Seal
SPRUCEST
END OF STREET
EVANWOOD AVE
Slurry Seal
SPRUCE ST
ST. MALO ST.
GLENDORA AVE
Slurry Seal
ST. MALO ST
VINE AVE
END OF STREET
Slurry Seal
ST. MALO ST
MERCED AVE
END OF STREET
Slurry Seal
ST. MALO ST
GLENMERE ST
BAINBRIDE AVE
Slurry Seal
ST. MALO ST
MICHELLE ST
SPRUCE ST
Slurry Seal
ST. MALO ST
RUDYARD ST
ALWOOD ST
Slurry Seal
ST. MALO ST
SERVICE AVE
BLUE ASH RD
Slurry Seal
ST. THIRA CT
ST. MALO ST
END OF STREET
Slurry Seal
TRENTON WY
END OF STREET
DELHAVEN AVE
Slurry Seal
VINE AVE
SUNSETAVE
CALIFORNIAAVE
Slurry Seal
VINE AVE.
CALIFORNIAAVE.
SANDY HOOK ST.
Slurry Seal
WEMBLY ST
SHADYDALE AVE
RADWAY AVE
Slurry Seal
WESCOVEPL
SANDY HOOK ST
GLENDORA AVE
Slurry Seal
WINDSOR ST
BROADMOOR AVE
SUNSETAVE
Slurry Seal
YARNELLST
SHADYDALE AVE
SUNSETAVE
Asphalt Coldmill & Overlay
BAINBRIDGE AVE
SHADYDALE AVE
END OF STREET
Asphalt Coldmill & Overlay
BAINBRIDGE AVE
CALIFORNIAAVE
BROADMOOR AVE
Asphalt Coldmill & Overlay
BARBARA AVE
END OF STREET
EVANWOOD AVE
Asphalt Coldmill & Overlay
BELMONT AVE
BROADMOOR AVE
BAINBRIDGE AVE
Asphalt Coldmill & Overlay
BROADMOOR AVE
DURNESS ST
ITUNI ST
Pavement Rehab Type
Street Name
Begin Location
End Location
Asphalt Coldmill & Overlay
CALIFORNIA AVE
CAMERON AVE
MERCED AVE
Asphalt Coldmill & Overlay
CALIFORNIAAVE
MERCED AVE
FRANCISQUITOAVE
Asphalt Coldmill & Overlay
CALIFORNIA AVE
CAMERON AVE
SERVICE AVE
Asphalt Coldmill & Overlay
CALIFORNIAAVE
WEST COVINA PKWY
SERVICE AVE
Asphalt Coldmill & Overlay
CAMILA RD
EVANWOOD AVE
GREENBERRY DR
Asphalt Coldmill & Overlay
DUFF AVE
LUCILLE AVE
MICHELLE ST
Asphalt Coldmill & Overlay
EVANWOOD AVE
DURNESS ST
MERCED AVE
Asphalt Coldmill & Overlay
EVANWOOD AVE
VINE AVE
MERCED AVE
Asphalt Coldmill & Overlay
EVANWOOD AVE
CAMERON AVE
SERVICE AVE
Asphalt Coldmill & Overlay
EVANWOOD AVE
VINE AVE
CAMERON AVE
Asphalt Coldmill & Overlay
GLENMERE ST
CALIFORNIA AVE
ST. MALO ST
Asphalt Coldmill & Overlay
ITUNI ST
BROADMOOR AVE
END OF STREET
Asphalt Coldmill & Overlay
ITUNI ST
EVANWOOD AVE
END OF STREET
Asphalt Coldmill & Overlay
PINE ST
END OF STREET
EVANWOOD AVE
Asphalt Coldmill & Overlay
SANDY HOOK ST
WESCOVE PL
VINE AVE
Asphalt Coldmill & Overlay
SHADYDALE AVE
ITUNI ST
MERCED AVE
ATTACHMENT NO.2
CITY OF WEST COVINA
CONSTRUCTION SERVICES AGREEMENT FOR
PROJECT NO.22005
FY 2021-22 RESIDENTIAL STREETS REHABILITATION PROGRAM (CDBG)
THIS CONSTRUCTION SERVICES AGREEMENT (herein "Agreement"), is made and
entered into this 15th day of March, 2022 ("Effective Date") by and between the CITY OF WEST
COVINA, a municipal corporation (herein "City"), and R.J. NOBLE COMPANY, a California
corporation (herein "Contractor").
RECITALS
A. City requires construction services for the FY 2021-22 Residential Streets
Rehabilitation Program (CDBG), City Project No. 22005 ("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. hi 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
fast 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;
(c) Federal Requirements, attached hereto as Exhibit A and incorporated herein;
(d) Contractor's Proposal, attached hereto as Exhibit B and incorporated herein;
(e) Certificates of Insurance, attached hereto as Exhibit C and incorporated herein;
Project No. 22005
(f) Bonds, attached hereto as Exhibit D 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 tines, 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
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Project No. 22005
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 2-358. 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 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.
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Project No. 22005
(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, staring 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.
(g) Davis -Bacon and Related Acts. Notwithstanding the foregoing provisions, this Project
is funded in whole or in part with Community Development Block Grant (CDBG) funds provided by
the U.S. Department of Housing and Urban Development (HUD). Federal Labor Standards Provisions,
including prevailing wage requirements of the Davis -Bacon and Related Acts will be enforced.
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 One
Million Eight Hundred Sixty -Seven Thousand Two Hundred Dollars ($1,867,200.00) (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 (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 Punishes 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
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Project No. 22005
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 forty (40)
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.
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:
Steven L. Mendoza, Secretary
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
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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 t unkline utilities but only to the extent such utilities were not identified
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
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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.
(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.
4.8 Best Management Practices. Contractor shall implement and maintain activity
specific Best Management Practices (BMPs) to prevent pollutant loading from stormwater and non-
stormwater discharges to receiving waters as required in Municipal NPDES Permit No.
CAS004004. Contracting staff whose primary job duties are related to implementation of BMPs
shall be adequately trained to effectively implement, operate, and maintain such BMPs and must
be versed in factors affecting BMP effectiveness. Contractor shall certify it has received all
applicable training to implement the requirements in Municipal NPDES Permit No. CAS004004
and shall provide documentation to that effect.
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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 famish 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
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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 hisureds: 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.
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,
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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
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.
6.0 BONDS
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 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.fins.treas.gov/c570/c570.htm1, subject to the maximum amount shown in the listing. If co-
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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.
(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
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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.
8.0 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.
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.
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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 party'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 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
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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 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 party 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 party'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 parry.
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
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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 calendar 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, 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 FEDERAL REQUIREMENTS
This Project is funded in whole or in part by federal funds and subject to the Federal Requirements
set forth in this Agreement, including, but not limited to, the requirements set forth in Exhibit A. Contractor
agrees to comply with said Federal Requirements and all federal requirements applicable to the Project.
Contractor shall comply with all applicable state and local codes, ordinances and other applicable
laws, all applicable CDBG program requirements and any amendments hereafter to CDBG program
guidelines and requirements.
12.0 SECTION 3 ECONOMIC OPPORTUNITIES COMPLIANCE
Contractor acknowledges that this Agreement is subject to the requirements of Section 3 of the Housing
and Urban Development Act of 1968, as amended, 12 U.S.C. 170lu ("Section 3"). The purpose of Section
3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD -
assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very
low-income persons, particularly persons who are recipients of HUD assistance for housing.
City and Contractor agree to comply with HUD's regulations in 24 CFR Part 135 ("Part 135"), which
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implement Section 3. As evidenced by their execution of this Agreement, City and Contractor certify that
they are under no contractual or other impediment that would prevent them from complying with the Part
135 regulations.
Contractor agrees to send to each labor organization or representative of workers with which Contractor
has a collective bargaining agreement or other understanding, if any, a notice advising the labor
organization or workers' representative of Contractor's commitments under this Section 3 clause, and will
post copies of the notice in conspicuous places at the work site where both employees and applicants for
training and employment positions can see the notice. The notice shall describe the Section 3 preference,
shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training
positions, the qualifications for each; and the name and location of the person(s) taking applications for
each of the positions; and the anticipated date the work shall begin.
Contractor agrees to include this Section 3 clause in every subcontract subject to compliance with Part 135
regulations, and agrees to take appropriate action, as provided in an applicable provision of the subcontract
or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR
Part 135. Contractor will not subcontract with any subcontractor where Contractor has notice or knowledge
that the subcontractor has been found in violation of the regulations in 24 CFR Part 135.
Contractor will certify that any vacant employment positions, including training positions, that are filled
(1) after Contractor is selected but before the Agreement is executed, and (2) with persons other than those
to whom the regulations of 24 CFR Part 135 require employment opportunities to be directed, were not
filled to circumvent Contractor's obligations under 24 CFR Part 135. Contractor will execute the "Section
3 Economic Opportunity Report," included in Exhibit A, and understands its obligations thereunder.
CONTRACTOR understands that noncompliance with HUD's regulations in 24 CFR Part 135 may result
in sanctions, termination of this Agreement for default, and debarment or suspension from future HUD -
assisted contracts.
13.0 MISCELLANEOUS PROVISIONS
13.1 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: R.J. Noble Company
15505 E. Lincoln Avenue
Orange, CA 92865
Attn: Steven Mendoza
13.2 Interpretation. The terms of this Agreement shall be construed in accordance with
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the meaning of the language used and shall not be construed for or against either parry by reason of
the authorship of this Agreement or any other rule of construction which might otherwise apply.
13.3 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.
13.4 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.
13.5 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.
13.6 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.
13.7 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.
13.8 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.
13.9 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.
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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
CONTRACTOR
Date
Steven Mendoza
Secretary
ATTEST:
Lisa Sherrick
Assistant City Clerk
APPROVED AS TO FORM:
Date:
Thomas P. Duarte
City Attorney
APPROVED AS TO INSURANCE:
Date:
Helen Tran
Risk Management
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EXHIBIT A
FEDERAL REQUIREMENTS
[To be inserted following City Council approval.]
ADDITIONAL FEDERAL REQUIREMENTS
Clean Air Act and Federal Pollution Control Act. Contractor agrees to comply with all
applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. §§
7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. §§ 1251-
1387), will report violations to HUD and the Regional Office of the Environmental Protection
Agency (EPA).
2. Debarment and Suspension. Contractor will not make any award or permit any award
(subaward or contract) to any party which is debarred or suspended or is otherwise excluded
from or ineligible for participation in Federal assistance programs under Executive Order
12549 and 12689, "Debarment and Suspension".
Byrd Anti -Lobbying Amendment, 31 U.S.C. § 1352 (as amended). Contractors who apply or
bid for an award of $100,000 or more shall file the required certification. Each tier certifies to
the tier above that it will not and has not used Federal appropriated funds to pay any person
or organization for influencing or attempting to influence an officer or employee of any
agency, a member of Congress, officer or employee of Congress, or an employee of a member
of Congress in connection with obtaining any Federal contract, grant, or any other award
covered by 31 U.S.C. § 1352. Each tier shall also disclose any lobbying with non -Federal
funds that takes place in connection with obtaining any Federal award. Such disclosures are
forwarded from tier to tier up to the recipient.
EXHIBIT B
CONTRACTOR'S PROPOSAL
[To be inserted following City Council approval.]
EXHIBIT C
CERTIFICATES OF INSURANCE
[To be inserted following City Council approval.]
EXHIBIT D
BONDS
[To be inserted following City Council approval.]